Document:

EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

     This Securities Purchase Agreement (this "Agreement") is dated as of August
1, 2012,  between Stevia Corp., a Nevada  corporation (the "Company"),  and each
purchaser  identified  on  the  signature  pages  hereto  (each,  including  its
successors and assigns, a "Purchaser" and collectively, the "Purchasers").

     WHEREAS,  subject to the terms and  conditions  set forth in this Agreement
and  pursuant to Section  4(2) of the  Securities  Act of 1933,  as amended (the
"Securities Act"), and Rule 506 promulgated  thereunder,  the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase  from the Company,  securities  of the Company as more fully
described in this Agreement.

     NOW, THEREFORE,  IN CONSIDERATION of the mutual covenants contained in this
Agreement,  and for other  good and  valuable  consideration,  the  receipt  and
adequacy of which are hereby acknowledged,  the Company and each Purchaser agree
as follows:

                                   ARTICLE I.
                                   DEFINITIONS

1.1 Definitions.  In addition to the terms defined  elsewhere in this Agreement,
for all purposes of this  Agreement,  the following  terms have the meanings set
forth in this Section 1.1:

     "Acquiring  Person" shall have the meaning ascribed to such term in Section
4.5.

     "Action" shall have the meaning ascribed to such term in Section 3.1(j).

     "Affiliate"  means any Person that,  directly or indirectly  through one or
more  intermediaries,  controls or is controlled  by or is under common  control
with a Person,  as such terms are used in and construed under Rule 405 under the
Securities Act.

     "Board of Directors" means the board of directors of the Company.

     "Business Day" means any day except any Saturday, any Sunday, any day which
is a federal  legal  holiday  in the United  States or any day on which  banking
institutions in the State of New York are authorized or required by law or other
governmental action to close.

     "Closing"  means the  closing of the  purchase  and sale of the  Securities
pursuant to Section 2.1.

     "Closing Date" means the date of the Closing,  which will be a Trading Day,
and which will in no event be later than the third  Trading  Day  following  the
date hereof.

     "Commission" means the United States Securities and Exchange Commission.
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     "Common Stock" means the common stock of the Company,  par value $0.001 per
share,  and any  other  class of  securities  into  which  such  securities  may
hereafter be reclassified or changed.

     "Common  Stock  Equivalents"  means any  securities  of the  Company or the
Subsidiaries  which  would  entitle  the  holder  thereof to acquire at any time
Common Stock, including,  without limitation,  any debt, preferred stock, right,
option,  warrant or other  instrument  that is at any time  convertible  into or
exercisable  or  exchangeable  for, or otherwise  entitles the holder thereof to
receive, Common Stock.

     "Company  Counsel" means  Greenberg  Traurig,  LLP, with offices located at
1201 K Street, Suite 1100, Sacramento, California 95814.

     "Disclosure  Schedules"  shall have the  meaning  ascribed  to such term in
Section 3.1.

     "EGS" means  Ellenoff  Grossman & Schole LLP,  with offices  located at 150
East 42nd Street, New York, New York 10017.

     "Effective  Date"  means  the  earliest  of the date  that (a) the  initial
Registration Statement has been declared effective by the Commission, (b) all of
the  Registrable  Securities  have been sold pursuant to Rule 144 or may be sold
pursuant to Rule 144 without the requirement for the Company to be in compliance
with the current public  information  required under Rule 144 and without volume
or manner-of-sale  restrictions or (c) following the one year anniversary of the
Closing  Date  provided  that  a  holder  of  Registrable  Securities  is not an
Affiliate of the Company, all of the Registrable Securities may be sold pursuant
to an exemption  from  registration  under  Section 4(1) of the  Securities  Act
without volume or manner-of-sale  restrictions and Company counsel has delivered
to such holders a standing written  unqualified opinion that resales may then be
made by such holders of the  Registrable  Securities  pursuant to such exemption
which  opinion  shall be in form and  substance  reasonably  acceptable  to such
holders.

     "Escrow Agent" means  Signature Bank, a New York State chartered bank, with
offices at 261 Madison Avenue, New York, New York 10016.

     "Escrow  Agreement"  means the escrow  agreement  entered into prior to the
date  hereof,  by and among the  Company,  the  Escrow  Agent and  Garden  State
Securities,  Inc.  pursuant to which the Purchasers  shall deposit  Subscription
Amounts  with the Escrow  Agent to be applied to the  transactions  contemplated
hereunder.

     "Equity Line Facility"  shall mean an equity line of credit facility for up
to $20,000,000  entered into by and between the Company and Southridge  Partners
II, LP on January 26, 2012, or another similar facility  provided that the terms
of such facility are no less favorable to the Company.

     "Evaluation  Date" shall have the meaning  ascribed to such term in Section
3.1(r).

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

     "Exempt  Issuance"  means the  issuance  of (a)  shares of Common  Stock or
options to employees, officers or directors of the Company pursuant to any stock
or option plan duly adopted for such purpose,  by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of
non-employee  directors  established  for such purpose,  (b) securities upon the
exercise or exchange of or conversion of any Securities  issued hereunder and/or
other  securities  exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided that
such  securities  have not been  amended  since  the date of this  Agreement  to
increase  the number of such  securities  or to  decrease  the  exercise  price,
exchange price or conversion  price of such securities and provided further that
any equity line of credit,  at-the-market  facility or other  similar  facility,
including  but not limited to the Equity Line  Facility,  shall not be deemed an
Exempt  Issuance,  (c) securities  issued  pursuant to acquisitions or strategic
transactions  approved  by a  majority  of the  disinterested  directors  of the
Company,  provided that any such  issuance  shall only be to a Person (or to the
equityholders  of a Person)  which is,  itself or through its  subsidiaries,  an
operating  company  or an owner of an asset in a business  synergistic  with the
business of the Company and shall provide to the Company additional  benefits in
addition to the  investment  of funds,  but shall not include a  transaction  in
which the  Company is issuing  securities  primarily  for the purpose of raising
capital or to an entity whose primary  business is investing in  securities  and
(d) up to $500,000, in the aggregate,  of Common Stock and Common Stock purchase
warrants  on the same  terms,  conditions  and  prices as the  Common  Stock and
Warrants  issued  hereunder  provided that such issuances occur on or before the
Filing Date (as defined in the Registration Rights Agreement).

     "FCPA" means the Foreign Corrupt Practices Act of 1977, as amended.

     "FDA" shall have the meaning ascribed to such term in Section 3.1(jj).

     "FDCA" shall have the meaning ascribed to such term in Section 3.1(jj).

     "GAAP" shall have the meaning ascribed to such term in Section 3.1(h).

     "Indebtedness"  shall  have the  meaning  ascribed  to such term in Section
3.1(aa).

     "Intellectual Property Rights" shall have the meaning ascribed to such term
in Section 3.1(o).

     "Legend  Removal  Date"  shall have the  meaning  ascribed  to such term in
Section 4.1(c).

     "Liens" means a lien, charge pledge, security interest,  encumbrance, right
of first refusal, preemptive right or other restriction.

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     "Material  Adverse Effect" shall have the meaning  assigned to such term in
Section 3.1(b).

     "Material  Permits" shall have the meaning ascribed to such term in Section
3.1(m).

     "Per Share  Purchase  Price" equals  $0.46875,  subject to  adjustment  for
reverse and forward stock splits, stock dividends,  stock combinations and other
similar  transactions  of the Common  Stock  that  occur  after the date of this
Agreement.

     "Person"   means  an  individual  or   corporation,   partnership,   trust,
incorporated or  unincorporated  association,  joint venture,  limited liability
company,  joint stock company,  government (or an agency or subdivision thereof)
or other entity of any kind.

     "Pharmaceutical  Product"  shall have the meaning  ascribed to such term in
Section 3.1(jj).

     "Proceeding"  means an action,  claim,  suit,  investigation  or proceeding
(including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

     "Public  Information  Failure" shall have the meaning ascribed to such term
in Section 4.2(b).

     "Public  Information  Failure  Payments" shall have the meaning ascribed to
such term in Section 4.2(b).

     "Purchaser  Party" shall have the meaning  ascribed to such term in Section
4.8.

     "Registration  Rights  Agreement" means the Registration  Rights Agreement,
dated the date  hereof,  among the  Company and the  Purchasers,  in the form of
Exhibit A attached hereto.

     "Registration   Statement"  means  a  registration  statement  meeting  the
requirements  set forth in the  Registration  Rights  Agreement and covering the
resale by the Purchasers of the Shares and the Warrant Shares.

     "Required  Approvals"  shall  have the  meaning  ascribed  to such  term in
Section 3.1(e).

     "Rule 144" means Rule 144  promulgated  by the  Commission  pursuant to the
Securities Act, as such Rule may be amended or interpreted from time to time, or
any  similar  rule or  regulation  hereafter  adopted by the  Commission  having
substantially the same purpose and effect as such Rule.

     "Rule 424" means Rule 424  promulgated  by the  Commission  pursuant to the
Securities Act, as such Rule may be amended or interpreted from time to time, or

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any  similar  rule or  regulation  hereafter  adopted by the  Commission  having
substantially the same purpose and effect as such Rule.

     "SEC  Reports"  shall  have the  meaning  ascribed  to such term in Section
3.1(h).

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

     "Securities  Act" means the  Securities  Act of 1933,  as amended,  and the
rules and regulations promulgated thereunder.

     "Shares"  means the  shares  of Common  Stock  issued or  issuable  to each
Purchaser pursuant to this Agreement.

     "Short  Sales" means all "short sales" as defined in Rule 200 of Regulation
SHO under the  Exchange  Act (but  shall not be deemed to include  the  location
and/or reservation of borrowable shares of Common Stock).

     "Subscription Amount" means, as to each Purchaser,  the aggregate amount to
be paid for Shares and Warrants  purchased  hereunder  as  specified  below such
Purchaser's name on the signature page of this Agreement and next to the heading
"Subscription  Amount," in United States  dollars and in  immediately  available
funds.

     "Subsidiary"  means any  subsidiary of the Company as set forth on Schedule
3.1(a)  and  shall,  where  applicable,  also  include  any  direct or  indirect
subsidiary of the Company formed or acquired after the date hereof.

     "Trading Day" means a day on which the principal Trading Market is open for
trading.

     "Trading  Market" means any of the following  markets or exchanges on which
the Common  Stock is listed or quoted for trading on the date in  question:  the
NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global
Select  Market,  the New York Stock  Exchange or the OTC Bulletin  Board (or any
successors to any of the foregoing).

     "Transaction   Documents"   means  this   Agreement,   the  Warrants,   the
Registration Rights Agreement, all exhibits and schedules thereto and hereto and
any other documents or agreements  executed in connection with the  transactions
contemplated hereunder.

     "Transfer  Agent"  means  Securities  Transfer  Corporation,   the  current
transfer agent of the Company,  with a mailing  address of 2591 Dallas  Parkway,
Suite 102, Frisco, Texas 75034 and a facsimile number of (469) 633-0088, and any
successor transfer agent of the Company.

     "Variable Rate Transaction" shall have the meaning ascribed to such term in
Section 4.12(b).

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     "VWAP"  means,  for any  date,  the  price  determined  by the first of the
following clauses that applies: (a) if the Common Stock is then listed or quoted
on a Trading Market, the daily volume weighted average price of the Common Stock
for such date (or the nearest preceding date) on the Trading Market on which the
Common Stock is then listed or quoted as reported by Bloomberg L.P.  (based on a
Trading  Day from 9:30 a.m.  (New  York City  time) to 4:02 p.m.  (New York City
time)),  (b) if the OTC  Bulletin  Board is not a  Trading  Market,  the  volume
weighted  average  price  of the  Common  Stock  for such  date (or the  nearest
preceding date) on the OTC Bulletin  Board,  (c) if the Common Stock is not then
listed or quoted  for  trading on the OTC  Bulletin  Board and if prices for the
Common  Stock are then  reported  in the  "Pink  Sheets"  published  by Pink OTC
Markets,  Inc. (or a similar  organization or agency succeeding to its functions
of reporting prices), the most recent bid price per share of the Common Stock so
reported,  or (d) in all other cases, the fair market value of a share of Common
Stock as determined by an  independent  appraiser  selected in good faith by the
Purchasers  of a  majority  in  interest  of the  Shares  then  outstanding  and
reasonably  acceptable  to the Company,  the fees and expenses of which shall be
paid by the Company.

     "Warrants"  means,   collectively,   the  Common  Stock  purchase  warrants
delivered to the  Purchasers  at the Closing in accordance  with Section  2.2(a)
hereof,  which  Warrants  shall be  exercisable  immediately  and have a term of
exercise equal to 5 YEARS, in the form of Exhibit C attached hereto.

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

                                   ARTICLE II.
                                PURCHASE AND SALE

2.1 Closing.  On the Closing Date,  upon the terms and subject to the conditions
set forth herein,  substantially  concurrent  with the execution and delivery of
this  Agreement  by the  parties  hereto,  the Company  agrees to sell,  and the
Purchasers,  severally  and not  jointly,  agree to  purchase  an  aggregate  of
$500,000 of Shares at the Per Share Purchase Price.  Each Purchaser will receive
a Warrant on the terms and in the amount set forth in Section  2.2(a)(iv) below.
On or before the Closing Date, each Purchaser shall deliver to the Escrow Agent,
via wire transfer or a certified  check,  immediately  available  funds equal to
such Purchaser's  Subscription  Amount as set forth on the signature page hereto
executed by such Purchaser,  and the Company shall deliver to each Purchaser its
respective Shares and a Warrant,  as determined  pursuant to Section 2.2(a), and
the  Company  and each  Purchaser  shall  deliver  the other  items set forth in
Section 2.2 deliverable at the Closing.  Upon  satisfaction of the covenants and
conditions  set forth in Sections  2.2 and 2.3,  the Closing  shall occur at the
offices of EGS or such other location as the parties shall mutually agree.

2.2 Deliveries.

     (a) On or prior to the Closing Date,  the Company shall deliver or cause to
be delivered to each Purchaser the following:

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          (i) this Agreement duly executed by the Company;

          (ii) a legal opinion of Company Counsel,  substantially in the form of
Exhibit B attached hereto;

          (iii) a copy of the  irrevocable  instructions  to the Transfer  Agent
instructing the Transfer Agent to deliver,  on an expedited basis, a certificate
evidencing  a number of Shares  equal to such  Purchaser's  Subscription  Amount
divided  by the  Per  Share  Purchase  Price,  registered  in the  name  of such
Purchaser;

          (iv) a Warrant registered in the name of such Purchaser to purchase up
to a number of shares of Common Stock equal to 100% of such Purchaser's  Shares,
with an exercise  price equal to $0.6405,  subject to  adjustment  therein (such
Warrant  certificate  may be delivered  within three Trading Days of the Closing
Date); and

          (v) the Registration Rights Agreement duly executed by the Company.

     (b) On or prior to the Closing Date,  each Purchaser shall deliver or cause
to be  delivered  to the  Company  or  the  Escrow  Agent,  as  applicable,  the
following:

          (i) this Agreement duly executed by such Purchaser;

          (ii) to the Escrow Agent, such Purchaser's Subscription Amount by wire
transfer or certified  check to the account  specified in the Escrow  Agreement;
and

          (iii)  the  Registration   Rights  Agreement  duly  executed  by  such
Purchaser.

2.3 Closing Conditions.

     (a) The obligations of the Company hereunder in connection with the Closing
are subject to the following conditions being met:

          (i) the accuracy in all  material  respects on the Closing Date of the
representations and warranties of the Purchasers  contained herein (unless as of
a specific date therein in which case they shall be accurate as of such date);

          (ii) all  obligations,  covenants  and  agreements  of each  Purchaser
required  to be  performed  at or prior to the  Closing  Date  shall  have  been
performed; and

          (iii) the delivery by each Purchaser of the items set forth in Section
2.2(b) of this Agreement.

     (b) The respective  obligations  of the Purchasers  hereunder in connection
with the Closing are subject to the following conditions being met:

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          (i) the accuracy in all material respects when made and on the Closing
Date of the  representations  and  warranties  of the Company  contained  herein
(unless as of a specific date therein);

          (ii) all obligations, covenants and agreements of the Company required
to be performed at or prior to the Closing Date shall have been performed;

          (iii) the  delivery  by the  Company of the items set forth in Section
2.2(a) of this Agreement;

          (iv) there shall have been no Material  Adverse Effect with respect to
the Company since the date hereof; and

          (v) from the date  hereof to the Closing  Date,  trading in the Common
Stock shall not have been suspended by the Commission or the Company's principal
Trading  Market,  and,  at any  time  prior  to the  Closing  Date,  trading  in
securities generally as reported by Bloomberg L.P. shall not have been suspended
or limited,  or minimum  prices shall not have been  established  on  securities
whose trades are reported by such service, or on any Trading Market.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

3.1  Representations  and Warranties of the Company.  Except as set forth in the
Disclosure  Schedules,  which Disclosure Schedules shall be deemed a part hereof
and shall qualify any representation or warranty or otherwise made herein to the
extent such disclosure  reasonably relates to such representation or warranty or
otherwise, the Company hereby makes the following representations and warranties
to each Purchaser:

     (a)  Subsidiaries.  All of the  direct  and  indirect  subsidiaries  of the
Company  are set forth on  Schedule  3.1(a).  Except  as set  forth on  Schedule
3.1(a),  the Company owns,  directly or indirectly,  all of the capital stock or
other equity  interests of each Subsidiary free and clear of any Liens,  and all
of the issued and  outstanding  shares of capital stock of each  Subsidiary  are
validly  issued and are fully paid,  non-assessable  and free of preemptive  and
similar  rights to subscribe for or purchase  securities.  If the Company has no
subsidiaries,  all other  references to the  Subsidiaries  or any of them in the
Transaction Documents shall be disregarded.

     (b)   Organization  and   Qualification.   The  Company  and  each  of  the
Subsidiaries  is an entity duly  incorporated  or otherwise  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation or organization, with the requisite power and authority to own and
use its  properties  and  assets  and to  carry  on its  business  as  currently
conducted. Neither the Company nor any Subsidiary is in violation nor default of
any  of  the   provisions  of  its   respective   certificate   or  articles  of
incorporation,  bylaws or other organizational or charter documents. Each of the
Company and the  Subsidiaries  is duly  qualified to conduct  business and is in
good standing as a foreign  corporation or other entity in each  jurisdiction in
which the nature of the business  conducted  or property  owned by it makes such
qualification necessary,  except where the failure to be so qualified or in good

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standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of
any  Transaction  Document,  (ii) a material  adverse  effect on the  results of
operations,  assets,  business or  condition  (financial  or  otherwise)  of the
Company  and the  Subsidiaries,  taken as a whole,  or (iii) a material  adverse
effect on the Company's  ability to perform in any material  respect on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a "Material  Adverse  Effect") and to the knowledge of the Company no Proceeding
has been instituted in any such jurisdiction revoking, limiting or curtailing or
seeking to revoke, limit or curtail such power and authority or qualification.

     (c)  Authorization;  Enforcement.  The Company has the requisite  corporate
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by this Agreement and each of the other  Transaction  Documents and
otherwise to carry out its obligations  hereunder and thereunder.  The execution
and delivery of each of this  Agreement and the other  Transaction  Documents by
the Company and the consummation by it of the transactions  contemplated  hereby
and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company, the Board of Directors
or the Company's  stockholders in connection herewith or therewith other than in
connection  with  the  Required   Approvals.   This  Agreement  and  each  other
Transaction Document to which it is a party has been (or upon delivery will have
been) duly  executed by the Company and, when  delivered in accordance  with the
terms hereof and thereof,  will  constitute the valid and binding  obligation of
the  Company  enforceable  against  the  Company in  accordance  with its terms,
except:   (i)  as  limited  by  general  equitable   principles  and  applicable
bankruptcy,  insolvency,  reorganization,  moratorium  and other laws of general
application  affecting  enforcement  of  creditors'  rights  generally,  (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other  equitable  remedies and (iii)  insofar as  indemnification  and
contribution provisions may be limited by applicable law.

     (d) No Conflicts. The execution, delivery and performance by the Company of
this Agreement and the other  Transaction  Documents to which it is a party, the
issuance  and  sale  of  the  Securities  and  the  consummation  by it  of  the
transactions  contemplated  hereby and thereby do not and will not: (i) conflict
with or violate any provision of the Company's or any  Subsidiary's  certificate
or  articles  of  incorporation,  bylaws  or  other  organizational  or  charter
documents,  (ii)  conflict  with, or constitute a default (or an event that with
notice or lapse of time or both  would  become a default)  under,  result in the
creation of any Lien upon any of the  properties or assets of the Company or any
Subsidiary, or give to others any rights of termination, amendment, acceleration
or  cancellation  (with  or  without  notice,  lapse of time or  both)  of,  any
agreement,  credit facility,  debt or other instrument  (evidencing a Company or
Subsidiary debt or otherwise) or other understanding to which the Company or any
Subsidiary  is a party or by which any  property  or asset of the Company or any
Subsidiary  is bound or affected,  or (iii)  subject to the Required  Approvals,
conflict  with or result in a violation  of any law,  rule,  regulation,  order,
judgment,  injunction,  decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations), or by which any property or asset of the

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Company  or a  Subsidiary  is bound or  affected;  except in the case of each of
clauses  (ii) and (iii),  such as could not have or  reasonably  be  expected to
result in a Material Adverse Effect.

     (e) Filings,  Consents and Approvals. The Company is not required to obtain
any consent, waiver,  authorization or order of, give any notice to, or make any
filing or registration  with, any court or other federal,  state, local or other
governmental  authority  or other  Person  in  connection  with  the  execution,
delivery and  performance  by the Company of the  Transaction  Documents,  other
than: (i) the filings required  pursuant to Section 4.4 of this Agreement,  (ii)
the filing with the Commission  pursuant to the Registration  Rights  Agreement,
(iii) the notice and/or application(s) to each applicable Trading Market for the
issuance  and sale of the  Securities  and the listing of the Shares and Warrant
Shares for trading thereon in the time and manner required  thereby and (iv) the
filing of Form D with the Commission and such filings as are required to be made
under applicable state securities laws (collectively, the "Required Approvals").

     (f)  Issuance  of the  Securities.  The  Shares and the  Warrants  are duly
authorized  and,  when  issued and paid for in  accordance  with the  applicable
Transaction  Documents,  will  be  duly  and  validly  issued,  fully  paid  and
nonassessable,  free and clear of all Liens  imposed by the  Company  other than
restrictions on transfer provided for in the Transaction Documents.  The Warrant
Shares, when issued and paid for in accordance with the terms of the Transaction
Documents, will be validly issued, fully paid and nonassessable,  free and clear
of all Liens imposed by the Company other than restrictions on transfer provided
for in the  Transaction  Documents.  The  Company  has  reserved  from  its duly
authorized  capital stock the maximum  number of shares of Common Stock issuable
pursuant to this Agreement and the Warrants.

     (g)  Capitalization.  The  capitalization  of the Company as of the date of
this Agreement is as set forth on Schedule  3.1(g)(i),  which Schedule 3.1(g)(i)
shall also include the number of shares of Common Stock owned beneficially,  and
of record,  by  Affiliates  of the Company as of the date hereof.  Except as set
forth on Schedule 3.1(g)(ii), the Company has not issued any capital stock since
its most  recently  filed  periodic  report under the Exchange  Act,  other than
pursuant to the exercise of employee  stock options  under the  Company's  stock
option  plans,  the issuance of shares of Common Stock to employees  pursuant to
the  Company's  employee  stock  purchase  plans and pursuant to the  conversion
and/or  exercise of Common Stock  Equivalents  outstanding as of the date of the
most recently  filed  periodic  report under the Exchange Act. No Person has any
right of first refusal, preemptive right, right of participation, or any similar
right  to  participate  in the  transactions  contemplated  by  the  Transaction
Documents.  Except as a result of the purchase and sale of the  Securities or as
set forth on Schedule 3.1(g)(iii),  there are no outstanding options,  warrants,
scrip rights to subscribe to, calls or commitments  of any character  whatsoever
relating  to,  or  securities,   rights  or  obligations   convertible  into  or
exercisable or exchangeable for, or giving any Person any right to subscribe for
or acquire any shares of Common Stock, or contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to
issue additional shares of Common Stock or Common Stock Equivalents. Except as a

                                       10
<PAGE>
result of the  purchase and sale of the  Securities  or as set forth on Schedule
3.1(g)(iv),  the  issuance  and sale of the  Securities  will not  obligate  the
Company to issue shares of Common Stock or other securities to any Person (other
than the  Purchasers)  and will not  result in a right of any  holder of Company
securities to adjust the exercise, conversion, exchange or reset price under any
of such  securities.  All of the  outstanding  shares  of  capital  stock of the
Company are duly authorized, validly issued, fully paid and nonassessable,  have
been issued in compliance with all federal and state  securities  laws, and none
of such outstanding  shares was issued in violation of any preemptive  rights or
similar rights to subscribe for or purchase  securities.  No further approval or
authorization of any  stockholder,  the Board of Directors or others is required
for  the  issuance  and  sale  of the  Securities.  There  are  no  stockholders
agreements,  voting  agreements or other similar  agreements with respect to the
Company's  capital stock to which the Company is a party or, to the knowledge of
the Company, between or among any of the Company's stockholders.

     (h) SEC Reports;  Financial Statements.  The Company has filed all reports,
schedules,  forms,  statements and other  documents  required to be filed by the
Company under the  Securities  Act and the Exchange Act,  including  pursuant to
Section 13(a) or 15(d) thereof,  for the two years preceding the date hereof (or
such  shorter  period as the Company was required by law or  regulation  to file
such  material)  (the foregoing  materials,  including the exhibits  thereto and
documents  incorporated by reference  therein,  being  collectively  referred to
herein as the "SEC Reports") on a timely basis or has received a valid extension
of such  time of  filing  and has  filed  any  such  SEC  Reports  prior  to the
expiration of any such extension.  As of their  respective  dates and subject to
any  amendments  thereto  which  have  been  filed  prior  to the  date  of this
Agreement,   the  SEC  Reports  complied  in  all  material  respects  with  the
requirements of the Securities Act and the Exchange Act, as applicable, and none
of the SEC Reports,  when filed,  contained  any untrue  statement of a material
fact or  omitted  to state a  material  fact  required  to be stated  therein or
necessary  in  order  to  make  the  statements  therein,  in the  light  of the
circumstances  under which they were made, not misleading.  The Company has not,
during the year preceding the date hereof, been an issuer subject to Rule 144(i)
under the Securities  Act. The financial  statements of the Company  included in
the SEC Reports  comply in all  material  respects  with  applicable  accounting
requirements  and the rules  and  regulations  of the  Commission  with  respect
thereto as in effect at the time of filing. Such financial  statements have been
prepared  in  accordance  with  United  States  generally  accepted   accounting
principles  applied on a consistent basis during the periods involved  ("GAAP"),
except as may be otherwise  specified in such financial  statements or the notes
thereto  and except  that  unaudited  financial  statements  may not contain all
footnotes  required by GAAP,  and fairly  present in all  material  respects the
financial  position of the Company and its  consolidated  Subsidiaries as of and
for 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,
immaterial, year-end audit adjustments.

     (i) Material  Changes;  Undisclosed  Events,  Liabilities or  Developments.
Since the date of the latest audited  financial  statements  included within the
SEC Reports,  except as specifically  disclosed in a subsequent SEC Report filed
prior to the date hereof: (i) there has been no event, occurrence or development
that has had or that  could  reasonably  be  expected  to result  in a  Material
Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or

                                       11
<PAGE>
otherwise)  other than (A) trade payables and accrued  expenses  incurred in the
ordinary  course of business  consistent  with past practice and (B) liabilities
not required to be reflected in the Company's  financial  statements pursuant to
GAAP or disclosed in filings made with the Commission, (iii) the Company has not
altered its method of accounting,  (iv) the Company has not declared or made any
dividend  or  distribution  of cash or other  property  to its  stockholders  or
purchased,  redeemed or made any  agreements to purchase or redeem any shares of
its capital  stock and (v) the Company has not issued any equity  securities  to
any officer,  director or Affiliate of the Company,  except pursuant to existing
Company  stock  option  plans.  The  Company  does not have  pending  before the
Commission any request for confidential treatment of information. Except for the
issuance of the  Securities  contemplated  by this  Agreement or as set forth on
Schedule  3.1(i),  no  event,  liability,  fact,  circumstance,   occurrence  or
development has occurred or exists, or is reasonably expected to occur or exist,
with respect to the Company or its Subsidiaries or their respective  businesses,
properties, operations, assets or financial condition, that would be required to
be disclosed by the Company under  applicable  securities  laws at the time this
representation  is made or deemed made that has not been  publicly  disclosed at
least 1 Trading Day prior to the date that this representation is made.

     (j) Litigation.  There is no action,  suit,  inquiry,  notice of violation,
proceeding  or  investigation  pending  or,  to the  knowledge  of the  Company,
threatened  against or affecting  the Company,  any  Subsidiary  or any of their
respective  properties  before  or by any  court,  arbitrator,  governmental  or
administrative agency or regulatory authority (federal,  state, county, local or
foreign)  (collectively,  an "Action") which (i) adversely affects or challenges
the legality,  validity or enforceability of any of the Transaction Documents or
the  Securities or (ii) could,  if there were an unfavorable  decision,  have or
reasonably  be  expected  to result in a Material  Adverse  Effect.  Neither the
Company nor any Subsidiary,  nor any director or officer thereof, is or has been
the subject of any Action  involving a claim of violation of or liability  under
federal or state  securities laws or a claim of breach of fiduciary duty. To the
knowledge  of the  Company,  there has not been,  and  there is not  pending  or
contemplated,  any investigation by the Commission  involving the Company or any
current or former  director or officer of the Company.  The  Commission  has not
issued  any stop  order or  other  order  suspending  the  effectiveness  of any
registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

     (k) Labor  Relations.  No labor dispute  exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company,  which
could reasonably be expected to result in a Material Adverse Effect. None of the
Company's or its Subsidiaries'  employees is a member of a union that relates to
such employee's  relationship  with the Company or such Subsidiary,  and neither
the Company nor any of its  Subsidiaries  is a party to a collective  bargaining
agreement.  To the knowledge of the Company, no executive officer of the Company
or any  Subsidiary  is, or is now  expected to be, in  violation of any material
term of any  employment  contract,  confidentiality,  disclosure or  proprietary
information  agreement or  non-competition  agreement,  or any other contract or
agreement  or any  restrictive  covenant  in favor of any third  party,  and the
continued employment of each such executive officer does not subject the Company

                                       12
<PAGE>
or any of its Subsidiaries to any liability with respect to any of the foregoing
matters.  The  Company  and its  Subsidiaries  are in  compliance  with all U.S.
federal,  state,  local and foreign laws and regulations  relating to employment
and  employment  practices,  terms and  conditions of  employment  and wages and
hours,  except where the failure to be in compliance could not,  individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

     (l) Compliance.  Neither the Company nor any Subsidiary:  (i) is in default
under or in  violation  of (and no event has  occurred  that has not been waived
that,  with  notice or lapse of time or both,  would  result in a default by the
Company or any Subsidiary under), nor has the Company or any Subsidiary received
notice of a claim that it is in default under or that it is in violation of, any
indenture,  loan or credit  agreement or any other  agreement or  instrument  to
which it is a party or by which it or any of its properties is bound (whether or
not such  default or  violation  has been  waived),  (ii) is in violation of any
judgment,  decree,  or  order of any  court,  arbitrator  or other  governmental
authority or (iii) to the knowledge of the Company,  is or has been in violation
of any statute,  rule,  ordinance or regulation of any  governmental  authority,
including without limitation all foreign, federal, state and local laws relating
to taxes,  environmental  protection,  occupational  health and safety,  product
quality  and safety and  employment  and labor  matters,  except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

     (m)  Regulatory  Permits.  The  Company  and the  Subsidiaries  possess all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state,  local or foreign  regulatory  authorities  necessary  to  conduct  their
respective businesses as described in the SEC Reports,  except where the failure
to possess such permits could not reasonably be expected to result in a Material
Adverse Effect ("Material Permits"),  and neither the Company nor any Subsidiary
has  received  any  notice  of   proceedings   relating  to  the  revocation  or
modification of any Material Permit.

     (n)  Title to  Assets.  The  Company  and the  Subsidiaries  have  good and
marketable  title in fee simple to all real property  owned by them and good and
marketable title in all personal  property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all
Liens,  except  for (i)  Liens as do not  materially  affect  the  value of such
property and do not  materially  interfere  with the use made and proposed to be
made of such property by the Company and the Subsidiaries and (ii) Liens for the
payment of federal,  state or other taxes, for which  appropriate  reserves have
been made therefor in  accordance  with GAAP and the payment of which is neither
delinquent nor subject to penalties. Any real property and facilities held under
lease  by the  Company  and the  Subsidiaries  are  held by  them  under  valid,
subsisting and  enforceable  leases with which the Company and the  Subsidiaries
are in compliance.

     (o) Intellectual  Property.  The Company and the Subsidiaries have, or have
rights  to  use,  all  patents,  patent  applications,   trademarks,   trademark
applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual  property rights and similar rights as described
in the SEC Reports as  necessary or required  for use in  connection  with their

                                       13
<PAGE>
respective  businesses  and which the  failure  to so have could have a Material
Adverse Effect (collectively,  the "Intellectual Property Rights"). None of, and
neither  the  Company  nor any  Subsidiary  has  received a notice  (written  or
otherwise) that any of, the Intellectual Property Rights has expired, terminated
or been abandoned, or is expected to expire or terminate or be abandoned, within
two (2) years  from the date of this  Agreement.  Neither  the  Company  nor any
Subsidiary  has  received,  since  the  date  of the  latest  audited  financial
statements  included  within  the SEC  Reports,  a written  notice of a claim or
otherwise has any knowledge  that the  Intellectual  Property  Rights violate or
infringe  upon the rights of any Person,  except as could not have or reasonably
be expected  to not have a Material  Adverse  Effect.  To the  knowledge  of the
Company,  all such Intellectual  Property Rights are enforceable and there is no
existing  infringement  by another  Person of any of the  Intellectual  Property
Rights. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy,  confidentiality  and value of all of their intellectual
properties,  except  where  failure to do so could not,  individually  or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     (p) Insurance.  The Company and the Subsidiaries are insured by insurers of
recognized  financial  responsibility  against such losses and risks and in such
amounts as are prudent and customary in the  businesses in which the Company and
the  Subsidiaries  are  engaged.  The  Company is in the  process  of  obtaining
directors and officers insurance coverage and expects to have such coverage, and
will use commercially reasonable efforts to obtain such coverage, within 30 days
following  the Closing  Date.  Neither the  Company nor any  Subsidiary  has any
reason  to  believe  that it will not be able to renew  its  existing  insurance
coverage as and when such coverage  expires or to obtain  similar  coverage from
similar  insurers  as may be  necessary  to  continue  its  business  without  a
significant increase in cost.

     (q) Transactions With Affiliates and Employees.  Except as set forth in the
SEC Reports,  none of the officers or directors of the Company or any Subsidiary
and, to the  knowledge of the Company,  none of the  employees of the Company or
any Subsidiary is presently a party to any  transaction  with the Company or any
Subsidiary  (other than for  services as  employees,  officers  and  directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  providing  for the  borrowing  of money from or lending of
money to or otherwise  requiring  payments to or from any  officer,  director or
such  employee  or, to the  knowledge  of the  Company,  any entity in which any
officer,  director,  or any such  employee has a  substantial  interest or is an
officer,  director,  trustee,  stockholder,  member or partner,  in each case in
excess of $120,000 other than for: (i) payment of salary or consulting  fees for
services  rendered,  (ii)  reimbursement  for expenses incurred on behalf of the
Company and (iii) other employee  benefits,  including  stock option  agreements
under any stock option plan of the Company.

     (r)  Sarbanes-Oxley;  Internal  Accounting  Controls.  The  Company and the
Subsidiaries are in material compliance with any and all applicable requirements
of the  Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and
any and all  applicable  rules and  regulations  promulgated  by the  Commission

                                       14
<PAGE>
thereunder  that are effective as of the date hereof and as of the Closing Date.
The  Company  and the  Subsidiaries  maintain  a system of  internal  accounting
controls  sufficient to provide reasonable  assurance that: (i) transactions are
executed in accordance  with  management's  general or specific  authorizations,
(ii)  transactions are recorded as necessary to permit  preparation of financial
statements in conformity with GAAP and to maintain asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization,  and (iv) the  recorded  accountability  for  assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.  The Company and the Subsidiaries have
established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and the  Subsidiaries and designed such
disclosure  controls and  procedures to ensure that  information  required to be
disclosed  by the Company in the reports it files or submits  under the Exchange
Act is recorded,  processed,  summarized  and reported,  within the time periods
specified in the Commission's rules and forms. The Company's certifying officers
have evaluated the  effectiveness  of the disclosure  controls and procedures of
the Company and the Subsidiaries as of the end of the period covered by the most
recently  filed  periodic   report  under  the  Exchange  Act  (such  date,  the
"Evaluation  Date").  The Company  presented in its most recently filed periodic
report under the Exchange Act the  conclusions of the certifying  officers about
the  effectiveness  of the  disclosure  controls and  procedures  based on their
evaluations as of the Evaluation  Date.  Since the Evaluation  Date,  there have
been no changes in the internal  control over financial  reporting (as such term
is defined in the Exchange  Act) of the Company and its  Subsidiaries  that have
materially affected,  or is reasonably likely to materially affect, the internal
control over financial reporting of the Company or its Subsidiaries.

     (s) Certain Fees.  Other than the fees and expenses  payable to GSS Capital
Group,  no brokerage or finder's fees or  commissions  are or will be payable by
the Company or any  Subsidiary to any broker,  financial  advisor or consultant,
finder, placement agent, investment banker, bank or other Person with respect to
the transactions contemplated by the Transaction Documents. The Purchasers shall
have no  obligation  with respect to any fees or with respect to any claims made
by or on behalf of other Persons for fees of a type contemplated in this Section
that  may  be  due in  connection  with  the  transactions  contemplated  by the
Transaction Documents.

     (t)  Private   Placement.   Assuming  the   accuracy  of  the   Purchasers'
representations  and warranties set forth in Section 3.2, no registration  under
the  Securities  Act is required for the offer and sale of the Securities by the
Company to the Purchasers as contemplated  hereby.  The issuance and sale of the
Securities  hereunder  does not  contravene  the  rules and  regulations  of the
Trading Market.

     (u) Investment Company. The Company is not, and is not an Affiliate of, and
immediately  after receipt of payment for the  Securities,  will not be or be an
Affiliate  of, an  "investment  company"  within the  meaning of the  Investment
Company Act of 1940,  as amended.  The Company  shall  conduct its business in a
manner  so  that  it  will  not  become  an  "investment   company"  subject  to
registration under the Investment Company Act of 1940, as amended.

                                       15
<PAGE>
     (v) Registration  Rights. Other than each of the Purchasers or as set forth
on Schedule  3.1(v) and the  registration  rights  granted under the Equity Line
Facility,  no  Person  has  any  right  to  cause  the  Company  to  effect  the
registration  under the  Securities  Act of any securities of the Company or any
Subsidiary.

     (w) Listing and  Maintenance  Requirements.  The Common Stock is registered
pursuant  to Section  12(b) or 12(g) of the  Exchange  Act,  and the Company has
taken no action  designed  to, or which to its  knowledge  is likely to have the
effect of,  terminating the  registration of the Common Stock under the Exchange
Act nor has the  Company  received  any  notification  that  the  Commission  is
contemplating  terminating  such  registration.  The  Company has not, in the 12
months  preceding the date hereof,  received  notice from any Trading  Market on
which the Common  Stock is or has been  listed or quoted to the effect  that the
Company is not in compliance  with the listing or  maintenance  requirements  of
such Trading  Market.  The Company is, and has no reason to believe that it will
not in the  foreseeable  future  continue  to be,  in  compliance  with all such
listing and maintenance requirements.

     (x)  Application  of  Takeover  Protections.  The  Company and the Board of
Directors  have  taken  all  necessary  action,  if  any,  in  order  to  render
inapplicable any control share acquisition,  business  combination,  poison pill
(including  any  distribution   under  a  rights  agreement)  or  other  similar
anti-takeover  provision under the Company's  certificate of  incorporation  (or
similar charter  documents) or the laws of its state of incorporation that is or
could become  applicable to the Purchasers as a result of the Purchasers and the
Company  fulfilling  their  obligations  or  exercising  their  rights under the
Transaction Documents, including without limitation as a result of the Company's
issuance of the Securities and the Purchasers' ownership of the Securities.

     (y) Disclosure. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company confirms
that  neither it nor any other  Person  acting on its behalf has provided any of
the Purchasers or their agents or counsel with any information  that it believes
constitutes or might constitute material,  non-public  information.  The Company
understands  and  confirms  that  the  Purchasers  will  rely  on the  foregoing
representation  in effecting  transactions in securities of the Company.  All of
the  disclosure  furnished  by or on behalf  of the  Company  to the  Purchasers
regarding the Company and its Subsidiaries,  their respective businesses and the
transactions  contemplated  hereby,  including the Disclosure  Schedules to this
Agreement,  is true and correct and does not contain any untrue  statement  of a
material fact or omit to state any material fact  necessary in order to make the
statements  made therein,  in light of the  circumstances  under which they were
made,  not  misleading.  The Company  acknowledges  and agrees that no Purchaser
makes  or has  made  any  representations  or  warranties  with  respect  to the
transactions  contemplated  hereby  other than those  specifically  set forth in
Section 3.2 hereof.

     (z) No  Integrated  Offering.  Assuming  the  accuracy  of the  Purchasers'
representations  and warranties  set forth in Section 3.2,  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 this

                                       16
<PAGE>
offering of the Securities to be integrated  with prior offerings by the Company
for purposes of (i) the Securities Act which would require the  registration  of
any such securities under the Securities Act, or (ii) any applicable shareholder
approval  provisions of any Trading Market on which any of the securities of the
Company are listed or designated.

     (aa)   Indebtedness.   The  Company  has  no  knowledge  of  any  facts  or
circumstances  which lead it to believe that it will file for  reorganization or
liquidation  under the  bankruptcy or  reorganization  laws of any  jurisdiction
within one year from the Closing  Date.  Schedule  3.1(aa)  sets forth as of the
date hereof 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"  means (x) any  liabilities for
borrowed  money or amounts owed in excess of $50,000  (other than trade accounts
payable  incurred  in the  ordinary  course of  business),  (y) 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
consolidated  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 (z) the present value of
any lease  payments  in excess  of  $50,000  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.

     (bb)Tax Status.  Except for matters that would not,  individually or in the
aggregate,  have or  reasonably  be  expected  to result in a  Material  Adverse
Effect,  the Company and its Subsidiaries  each (i) has made or filed all United
States federal,  state and local income and all foreign income and franchise tax
returns,  reports and  declarations  required by any jurisdiction to which it is
subject, (ii) has paid all taxes and other governmental  assessments and charges
that are  material in amount,  shown or  determined  to be due on such  returns,
reports  and  declarations  and  (iii)  has set  aside  on its  books  provision
reasonably adequate for the payment of all material taxes for periods subsequent
to the periods to which such returns,  reports or declarations  apply. There are
no unpaid taxes in any material amount claimed to be due by the taxing authority
of any  jurisdiction,  and the officers of the Company or of any Subsidiary know
of no basis for any such claim.

     (cc)No General  Solicitation.  Neither the Company nor any person acting on
behalf of the Company has offered or sold any of the  Securities  by any form of
general  solicitation  or general  advertising.  The  Company  has  offered  the
Securities  for  sale  only to the  Purchasers  and  certain  other  "accredited
investors" within the meaning of Rule 501 under the Securities Act.

     (dd)Foreign Corrupt Practices.  Neither the Company nor any Subsidiary,  to
the knowledge of the Company or any Subsidiary, any agent or other person acting
on behalf of the Company or any  Subsidiary,  has: (i)  directly or  indirectly,
used  any  funds  for  unlawful  contributions,  gifts,  entertainment  or other
unlawful expenses related to foreign or domestic political  activity,  (ii) made

                                       17
<PAGE>
any unlawful payment to foreign or domestic government officials or employees or
to any foreign or domestic  political parties or campaigns from corporate funds,
(iii)  failed to  disclose  fully any  contribution  made by the  Company or any
Subsidiary  (or made by any person  acting on its behalf of which the Company is
aware) which is in violation of law or (iv) violated in any material respect any
provision of FCPA.

     (ee)Accountants.  The  Company's  accounting  firm is set forth on Schedule
3.1(ee) of the Disclosure Schedules. To the knowledge and belief of the Company,
such accounting firm: (i) is a registered  public accounting firm as required by
the  Exchange  Act and (ii)  shall  express  its  opinion  with  respect  to the
financial  statements  to be included  in the  Company's  Annual  Report for the
fiscal year ending March 31, 2013.

     (ff)  No  Disagreements   with  Accountants  and  Lawyers.   There  are  no
disagreements of any kind presently existing,  or reasonably  anticipated by the
Company to arise,  between the Company and the accountants and lawyers  formerly
or presently  employed by the Company and the Company is current with respect to
any fees owed to its  accountants  and lawyers  which could affect the Company's
ability  to  perform  any  of its  obligations  under  any  of  the  Transaction
Documents.

     (gg)  Acknowledgment  Regarding  Purchasers'  Purchase of  Securities.  The
Company  acknowledges and agrees that each of the Purchasers is acting solely in
the  capacity  of an arm's  length  purchaser  with  respect to the  Transaction
Documents  and  the  transactions  contemplated  thereby.  The  Company  further
acknowledges  that no Purchaser is acting as a financial advisor or fiduciary of
the  Company  (or in any  similar  capacity)  with  respect  to the  Transaction
Documents and the transactions  contemplated thereby and any advice given by any
Purchaser or any of their  respective  representatives  or agents in  connection
with the  Transaction  Documents and the  transactions  contemplated  thereby is
merely  incidental to the Purchasers'  purchase of the  Securities.  The Company
further  represents to each Purchaser that the Company's  decision to enter into
this Agreement and the other Transaction  Documents has been based solely on the
independent  evaluation of the transactions  contemplated  hereby by the Company
and its representatives.

     (hh)Acknowledgment Regarding Purchaser's Trading Activity. Anything in this
Agreement  or  elsewhere  herein to the  contrary  notwithstanding  (except  for
Sections  3.2(g) and 4.13 hereof),  it is  understood  and  acknowledged  by the
Company that: (i) none of the Purchasers has been asked by the Company to agree,
nor has any Purchaser agreed, to desist from purchasing or selling,  long and/or
short, securities of the Company, or "derivative" securities based on securities
issued by the Company or to hold the  Securities  for any specified  term,  (ii)
past or future open market or other transactions by any Purchaser,  specifically
including, without limitation, Short Sales or "derivative" transactions,  before
or after the  closing  of this or future  private  placement  transactions,  may
negatively impact the market price of the Company's publicly-traded  securities,
(iii) any Purchaser,  and counter-parties in "derivative"  transactions to which
any such  Purchaser is a party,  directly or  indirectly,  may presently  have a
"short" position in the Common Stock and (iv) each Purchaser shall not be deemed
to have any affiliation  with or control over any arm's length  counter-party in
any "derivative"  transaction.  The Company further understands and acknowledges
that (y) one or more  Purchasers  may  engage in hedging  activities  at various

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<PAGE>
times during the period that the Securities are outstanding,  including, without
limitation,  during the periods that the value of the Warrant Shares deliverable
with respect to Securities are being determined, and (z) such hedging activities
(if any) could reduce the value of the existing  stockholders'  equity interests
in the  Company  at and  after the time that the  hedging  activities  are being
conducted.  The Company acknowledges that such aforementioned hedging activities
do not constitute a breach of any of the Transaction Documents.

     (ii) Regulation M Compliance.  The Company has not, and to its knowledge no
one acting on its behalf  has,  (i) taken,  directly or  indirectly,  any action
designed to cause or to result in the stabilization or manipulation of the price
of any  security of the Company to  facilitate  the sale or resale of any of the
Securities,  (ii)  sold,  bid  for,  purchased,  or paid  any  compensation  for
soliciting  purchases of, any of the Securities,  or (iii) paid or agreed to pay
to any Person any  compensation  for  soliciting  another to purchase  any other
securities  of the Company,  other than,  in the case of clauses (ii) and (iii),
compensation  paid to the  Company's  placement  agent  in  connection  with the
placement of the Securities.

     (jj) Stock Option  Plans.  The Company has not had and  currently  does not
have a stock option plan.

     (kk)  Office  of  Foreign  Assets  Control.  Neither  the  Company  nor any
Subsidiary  nor, to the  Company's  knowledge,  any  director,  officer,  agent,
employee or affiliate of the Company or any  Subsidiary is currently  subject to
any U.S.  sanctions  administered by the Office of Foreign Assets Control of the
U.S. Treasury Department ("OFAC").

     (ll) U.S. Real  Property  Holding  Corporation.  The Company is not and has
never been a U.S.  real  property  holding  corporation  within  the  meaning of
Section 897 of the Internal  Revenue Code of 1986,  as amended,  and the Company
shall so certify upon Purchaser's request.

     (mm)  Bank  Holding  Company  Act.  Neither  the  Company  nor  any  of its
Subsidiaries  or Affiliates is subject to the Bank Holding  Company Act of 1956,
as amended  (the  "BHCA") and to  regulation  by the Board of  Governors  of the
Federal Reserve System (the "Federal  Reserve").  Neither the Company nor any of
its  Subsidiaries or Affiliates owns or controls,  directly or indirectly,  five
percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five  percent or more of the total equity of a bank or any entity that
is subject to the BHCA and to  regulation  by the Federal  Reserve.  Neither the
Company  nor any of its  Subsidiaries  or  Affiliates  exercises  a  controlling
influence  over the  management  or  policies  of a bank or any  entity  that is
subject to the BHCA and to regulation by the Federal Reserve.

     (nn) Money  Laundering.  The operations of the Company and its Subsidiaries
are and have been conducted at all times in compliance with applicable financial
record-keeping   and  reporting   requirements   of  the  Currency  and  Foreign
Transactions  Reporting Act of 1970,  as amended,  applicable  money  laundering
statutes and applicable  rules and  regulations  thereunder  (collectively,  the

                                       19
<PAGE>
"Money  Laundering  Laws"),  and no action,  suit or proceeding by or before any
court or governmental agency,  authority or body or any arbitrator involving the
Company or any Subsidiary  with respect to the Money  Laundering Laws is pending
or, to the knowledge of the Company or any Subsidiary, threatened.

3.2 Representations and Warranties of the Purchasers. Each Purchaser, for itself
and for no other Purchaser, hereby represents and warrants as of the date hereof
and as of the Closing  Date to the  Company as follows  (unless as of a specific
date therein):

     (a) Organization;  Authority.  Such Purchaser is either an individual or an
entity duly incorporated or formed,  validly existing and in good standing under
the laws of the jurisdiction of its  incorporation or formation with full right,
corporate, partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its  obligations  hereunder and thereunder.
The execution and delivery of the Transaction  Documents and performance by such
Purchaser of the  transactions  contemplated by the  Transaction  Documents have
been duly authorized by all necessary corporate,  partnership, limited liability
company or similar action,  as applicable,  on the part of such Purchaser.  Each
Transaction  Document  to which it is a party  has been  duly  executed  by such
Purchaser,  and when  delivered by such  Purchaser in accordance  with the terms
hereof,  will  constitute  the  valid and  legally  binding  obligation  of such
Purchaser,  enforceable against it in accordance with its terms,  except: (i) as
limited by general equitable principles and applicable  bankruptcy,  insolvency,
reorganization,  moratorium  and other  laws of  general  application  affecting
enforcement of creditors' rights generally,  (ii) as limited by laws relating to
the availability of specific  performance,  injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     (b) Own  Account.  Such  Purchaser  understands  that  the  Securities  are
"restricted securities" and have not been registered under the Securities Act or
any applicable state securities law and is acquiring the Securities as principal
for its own account and not with a view to or for distributing or reselling such
Securities  or any  part  thereof  in  violation  of the  Securities  Act or any
applicable state securities law, has no present intention of distributing any of
such  Securities  in violation of the  Securities  Act or any  applicable  state
securities law and has no direct or indirect  arrangement or understandings with
any other persons to distribute or regarding the distribution of such Securities
in violation of the Securities Act or any applicable  state securities law (this
representation  and  warranty not limiting  such  Purchaser's  right to sell the
Securities  pursuant to the  Registration  Statement or otherwise in  compliance
with applicable  federal and state securities laws). Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.  Such Purchaser
is not  acquiring  the Shares as part of a group  within the  meaning of Section
13(d)(3) of the Exchange Act.

     (c)  Purchaser   Status.  At  the  time  such  Purchaser  was  offered  the
Securities,  it was,  and as of the date hereof it is, and on each date on which
it exercises any Warrants,  it will be either:  (i) an "accredited  investor" as
defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities

                                       20
<PAGE>
Act or (ii) a "qualified  institutional  buyer" as defined in Rule 144A(a) under
the  Securities  Act.  Such  Purchaser  is not  required to be  registered  as a
broker-dealer under Section 15 of the Exchange Act.

     (d) Experience of Such Purchaser;  Investigation.  Such  Purchaser,  either
alone or together with its representatives,  has such knowledge,  sophistication
and  experience  in  business  and  financial  matters  so as to be  capable  of
evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment.  Such Purchaser is
able to bear the economic risk of an investment  in the  Securities  and, at the
present  time,  is able to  afford  a  complete  loss of such  investment.  Such
Purchaser  in  making  its  investment   decision  has  relied  solely  upon  an
independent  investigation  made by such  Purchaser  and its  legal,  tax and/or
financial  advisors  and, is not relying  upon any oral  representations  of the
Company.

     (e) Access to Information. Such Purchaser understands that an investment in
the Securities involves a high degree of risk and illiquidity,  including,  risk
of  loss of  their  entire  investment.  Such  Purchaser  represents  that  such
Purchaser has been given full and complete access to the Company for the purpose
of obtaining such information as such Purchaser or its qualified  representative
has  reasonably  requested  in  connection  with the  decision to  purchase  the
Securities.  Such  Purchaser  represents  that such  Purchaser  has received and
reviewed  copies  of the  SEC  Reports.  Such  Purchaser  represents  that  such
Purchaser has been afforded the  opportunity to ask questions of the officers of
the  Company  regarding  its  business  prospects  and the  Securities,  as such
Purchaser  has  found  necessary  to make an  informed  investment  decision  to
purchase the Securities.

     (f) General  Solicitation.  Such Purchaser is not purchasing the Securities
as a  result  of any  advertisement,  article,  notice  or  other  communication
regarding the Securities  published in any newspaper,  magazine or similar media
or broadcast  over  television or radio or presented at any seminar or any other
general solicitation or general advertisement.

     (g) Information Regarding Offering. No person has made to the Purchaser any
written or oral  representations  (i) that any person will resell or  repurchase
any of the  Securities;  (ii) that any person will refund the purchase  price of
any of the  Securities;  (iii)  as to the  future  price  or value of any of the
Securities;  or (iv) that any of the  Securities  will be listed  and posted for
trading on any stock  exchange  or  automated  dealer  quotation  system or that
application  has been made to list and post any of the Securities of the Company
on any stock exchange or automated dealer quotation system;

     (h) Certain Transactions and  Confidentiality.  Other than consummating the
transactions   contemplated  hereunder,  such  Purchaser  has  not  directly  or
indirectly,  nor  has  any  Person  acting  on  behalf  of or  pursuant  to  any
understanding  with such Purchaser,  executed any purchases or sales,  including
Short Sales, of the securities of the Company during the period commencing as of
the time that such Purchaser  first received a term sheet (written or oral) from
the  Company  or any  other  Person  setting  forth  the  material  terms of the
transactions  contemplated  hereunder,  or otherwise became aware of such terms,
and  ending  immediately  prior to the  execution  hereof.  Notwithstanding  the

                                       21
<PAGE>
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser's
assets and the  portfolio  managers have no direct  knowledge of the  investment
decisions  made  by the  portfolio  managers  managing  other  portions  of such
Purchaser's  assets,  the  representation  set forth above shall only apply with
respect to the portion of assets managed by the portfolio  manager(s)  that were
aware of the proposed terms of the transactions  contemplated  hereunder.  Other
than to other Persons party to this Agreement, such Purchaser has maintained the
confidentiality   of  all  disclosures  made  to  it  in  connection  with  this
transaction   (including   the  existence   and  terms  of  this   transaction).
Notwithstanding the foregoing,  for avoidance of doubt, nothing contained herein
shall constitute a  representation  or warranty,  or preclude any actions,  with
respect to the  identification of the availability of, or securing of, available
shares to borrow in order to effect Short Sales or similar  transactions  in the
future.

     (i) Restricted Securities. Such Purchaser has been advised that none of the
Securities have been registered under the Securities Act or any other applicable
securities  laws,  as described in Section 4.1 below,  and that Shares are being
offered and sold pursuant to Section 4(2) of the  Securities Act and/or Rule 506
of  Regulation D thereunder,  and that the Company's  reliance upon Section 4(2)
and/or  Rule  506 of  Regulation  D is  predicated  in part  on  such  Purchaser
representations as contained herein.

     (j)  Disclosure.  The Purchaser  understands  and confirms that the Company
will  rely  on  the  foregoing   representation  in  effecting  transactions  in
securities of the Company.  All of the representations and warranties  furnished
by or on behalf of the  Purchaser to the Company in this  Agreement are true and
correct.

The  Company  acknowledges  and agrees  that the  representations  contained  in
Section 3.2 shall not modify,  amend or affect such Purchaser's right to rely on
the Company's  representations and warranties contained in this Agreement or any
representations  and warranties  contained in any other Transaction  Document or
any other document or instrument  executed  and/or  delivered in connection with
this Agreement or the consummation of the transaction contemplated hereby.

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

4.1 Transfer Restrictions.

     (a) The  Securities  may only be disposed of in  compliance  with state and
federal  securities  laws. In connection  with any transfer of Securities  other
than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Purchaser or in connection with a pledge as contemplated
in Section 4.1(b),  the Company may require the transferor thereof to provide to
the Company an opinion of counsel  selected  by the  transferor  and  reasonably
acceptable  to the Company,  the form and  substance of which  opinion  shall be
reasonably  satisfactory  to the Company,  to the effect that such transfer does
not require  registration of such  transferred  Securities  under the Securities
Act. As a condition of transfer,  any such transferee  shall agree in writing to
be bound by the terms of this Agreement and the  Registration  Rights  Agreement
and shall have the rights and  obligations  of a Purchaser  under this Agreement
and the Registration Rights Agreement.

                                       22
<PAGE>
     (b) The Purchasers agree to the imprinting,  so long as is required by this
Section 4.1, of a legend on any of the Securities in the following form:

THIS  SECURITY  HAS  NOT  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE
COMMISSION  OR THE  SECURITIES  COMMISSION  OF ANY  STATE  IN  RELIANCE  UPON AN
EXEMPTION  FROM  REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY,  MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE  REGISTRATION  STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN  AVAILABLE   EXEMPTION  FROM,  OR  IN  A  TRANSACTION  NOT  SUBJECT  TO,  THE
REGISTRATION   REQUIREMENTS  OF  THE  SECURITIES  ACT  AND  IN  ACCORDANCE  WITH
APPLICABLE  STATE  SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE  TRANSFEROR  TO SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY
ACCEPTABLE TO THE COMPANY.  THIS  SECURITY MAY BE PLEDGED IN  CONNECTION  WITH A
BONA FIDE MARGIN  ACCOUNT WITH A REGISTERED  BROKER-DEALER  OR OTHER LOAN WITH A
FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

     The Company  acknowledges  and agrees  that  subject to  applicable  law, a
Purchaser may from time to time pledge pursuant to a bona fide margin  agreement
with a registered  broker-dealer or grant a security  interest in some or all of
the Securities to a financial  institution  that is an "accredited  investor" as
defined in Rule 501(a)  under the  Securities  Act and who agrees to be bound by
the provisions of this Agreement and the  Registration  Rights Agreement and, if
required  under the  terms of such  arrangement,  such  Purchaser  may  transfer
pledged or secured Securities to the pledgees or secured parties.  Such a pledge
or transfer would not be subject to approval of the Company and no legal opinion
of legal  counsel of the pledgee,  secured party or pledgor shall be required in
connection  therewith.  Further,  no notice shall be required of such pledge. At
the appropriate  Purchaser's  expense and subject to applicable law, the Company
will execute and deliver such reasonable  documentation  as a pledgee or secured
party of  Securities  may  reasonably  request  in  connection  with a pledge or
transfer  of  the  Securities,  including,  if the  Securities  are  subject  to
registration pursuant to the Registration Rights Agreement,  the preparation and
filing of any required  prospectus  supplement  under Rule  424(b)(3)  under the
Securities  Act  or  other  applicable   provision  of  the  Securities  Act  to
appropriately  amend  the  list  of  Selling  Stockholders  (as  defined  in the
Registration Rights Agreement) thereunder.

     (c) Certificates evidencing the Shares and Warrant Shares shall not contain
any legend (including the legend set forth in Section 4.1(b) hereof),  (i) while
a registration  statement  (including the Registration  Statement)  covering the
resale of such security is effective  under the  Securities  Act, (ii) following
any sale of such Shares or Warrant  Shares  pursuant to Rule 144,  (iii) if such
Shares or Warrant  Shares are  eligible  for sale  under Rule 144,  without  the

                                       23
<PAGE>
requirement  for  the  Company  to be in  compliance  with  the  current  public
information  required  under Rule 144 as to such Shares and  Warrant  Shares and
without  volume or  manner-of-sale  restrictions,  or (iv) if such legend is not
required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements  issued by the staff of the Commission).  The
Company shall cause its counsel to issue a legal  opinion to the Transfer  Agent
promptly  after the Effective  Date if required by the Transfer  Agent to effect
the  removal  of the  legend  hereunder.  If all or any  portion of a Warrant is
exercised at a time when there is an effective  registration  statement to cover
the resale of the Warrant  Shares,  or if such  Shares or Warrant  Shares may be
sold  under  Rule 144 and the  Company is then in  compliance  with the  current
public  information  required under Rule 144, or if the Shares or Warrant Shares
may be sold under Rule 144  without  the  requirement  for the  Company to be in
compliance  with the current  public  information  required under Rule 144 as to
such Shares or Warrant Shares or if such legend is not otherwise  required under
applicable    requirements   of   the   Securities   Act   (including   judicial
interpretations  and pronouncements  issued by the staff of the Commission) then
such Warrant Shares shall be issued free of all legends. The Company agrees that
following  the  Effective  Date or at such  time as  such  legend  is no  longer
required  under this Section  4.1(c),  it will, no later than three Trading Days
following the delivery by a Purchaser to the Company or the Transfer  Agent of a
certificate  representing  Shares or Warrant Shares,  as the case may be, issued
with a restrictive  legend (such third Trading Day, the "Legend  Removal Date"),
deliver or cause to be delivered to such  Purchaser a  certificate  representing
such shares that is free from all restrictive and other legends. The Company may
not make any notation on its records or give  instructions to the Transfer Agent
that  enlarge  the  restrictions  on  transfer  set  forth  in this  Section  4.
Certificates  for  Securities  subject  to  legend  removal  hereunder  shall be
transmitted  by the Transfer  Agent to the Purchaser by crediting the account of
the  Purchaser's  prime  broker  with the  Depository  Trust  Company  System as
directed by such Purchaser.

     (d) In addition to such Purchaser's other available  remedies,  the Company
shall pay to a Purchaser,  in cash, as partial  liquidated  damages and not as a
penalty,  for each $2,000 of Shares or Warrant  Shares (based on the VWAP of the
Common Stock on the date such  Securities  are submitted to the Transfer  Agent)
delivered for removal of the  restrictive  legend and subject to Section 4.1(c),
$10 per Trading Day for each Trading Day after the second  Trading Day following
the Legend Removal Date until such  certificate  is delivered  without a legend.
Nothing herein shall limit such  Purchaser's  right to pursue actual damages for
the Company's  failure to deliver  certificates  representing  any Securities as
required by the Transaction  Documents,  and such Purchaser shall have the right
to pursue all remedies  available to it at law or in equity  including,  without
limitation, a decree of specific performance and/or injunctive relief.

     (e) Each  Purchaser,  severally and not jointly with the other  Purchasers,
agrees with the Company that such Purchaser will sell any Securities pursuant to
either the  registration  requirements  of the  Securities  Act,  including  any
applicable prospectus delivery requirements, or an exemption therefrom, and that
if Securities are sold pursuant to a Registration  Statement,  they will be sold
in compliance with the plan of distribution set forth therein,  and acknowledges
that the  removal  of the  restrictive  legend  from  certificates  representing

                                       24
<PAGE>
Securities  as set forth in this Section 4.1 is  predicated  upon the  Company's
reliance upon this understanding.

4.2 Furnishing of Information; Public Information.

     (a) If the Common Stock is not  registered  under Section 12(b) or 12(g) of
the  Exchange  Act on the date  hereof,  the Company  agrees to cause the Common
Stock to be registered  under Section 12(g) of the Exchange Act on or before the
60th calendar day following the date hereof. Until the earliest of the time that
(i) no Purchaser owns Securities or (ii) the Warrants have expired,  the Company
covenants to maintain the  registration  of the Common Stock under Section 12(b)
or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect
thereof and file within the applicable  grace period) all reports required to be
filed by the Company after the date hereof  pursuant to the Exchange Act even if
the Company is not then subject to the  reporting  requirements  of the Exchange
Act.

     (b) At any  time  during  the  period  commencing  from  the six (6)  month
anniversary of the date hereof and ending upon the earlier of (i) such time that
all of the Securities may be sold without the  requirement for the Company to be
in  compliance  with  Rule  144(c)(1)  and  otherwise  without   restriction  or
limitation  pursuant to Rule 144, or (ii) the second  anniversary of the date of
this Agreement,  if the Company shall fail for any reason to satisfy the current
public  information   requirement  under  Rule  144(c)  (a  "Public  Information
Failure") then, in addition to such Purchaser's  other available  remedies,  the
Company shall pay to a Purchaser, in cash, as partial liquidated damages and not
as a penalty, by reason of any such delay in or reduction of its ability to sell
the  Securities,  an amount in cash equal to one percent (1.0%) of the aggregate
Subscription  Amount  of such  Purchaser's  Securities  on the  day of a  Public
Information  Failure  and on every  thirtieth  (30th) day (pro rated for periods
totaling  less than thirty  days)  thereafter  until the earlier of (a) the date
such  Public  Information  Failure  is cured and (b) such time that such  public
information is no longer  required for the Purchasers to transfer the Shares and
Warrant Shares  pursuant to Rule 144. The payments to which a Purchaser shall be
entitled  pursuant  to this  Section  4.2(b) are  referred  to herein as "Public
Information Failure Payments." Public Information Failure Payments shall be paid
on the  earlier  of (i) the last day of the  calendar  month  during  which such
Public  Information  Failure  Payments  are  incurred  and (ii) the third  (3rd)
Business  Day after the event or failure  giving rise to the Public  Information
Failure  Payments  is  cured.  In the  event the  Company  fails to make  Public
Information Failure Payments in a timely manner, such Public Information Failure
Payments shall bear interest at the rate of 1.5% per month (prorated for partial
months) until paid in full. Nothing herein shall limit such Purchaser's right to
pursue actual  damages for the Public  Information  Failure,  and such Purchaser
shall have the right to pursue all remedies  available to it at law or in equity
including,   without  limitation,   a  decree  of  specific  performance  and/or
injunctive relief.

4.3 Integration. The Company shall not sell, offer for sale or solicit offers to
buy or  otherwise  negotiate in respect of any security (as defined in Section 2
of the  Securities  Act) that would be integrated  with the offer or sale of the

                                       25
<PAGE>
Securities in a manner that would require the registration  under the Securities
Act of the sale of the Securities or that would be integrated  with the offer or
sale of the Securities for purposes of the rules and  regulations of any Trading
Market such that it would require  shareholder  approval prior to the closing of
such other  transaction  unless  shareholder  approval  is  obtained  before the
closing of such subsequent transaction.

4.4 Securities Laws  Disclosure;  Publicity.  The Company shall (a) by 9:30 a.m.
(New York City time) on the Trading Day  immediately  following the date hereof,
issue  a  press  release  disclosing  the  material  terms  of the  transactions
contemplated  hereby,  and (b) file a Current Report on Form 8-K,  including the
Transaction  Documents as exhibits thereto,  with the Commission within the time
required by the Exchange Act. From and after the issuance of such press release,
the Company  represents to the Purchasers that it shall have publicly  disclosed
all material,  non-public  information delivered to any of the Purchasers by the
Company  or any of its  Subsidiaries,  or  any  of  their  respective  officers,
directors,  employees or agents in connection with the transactions contemplated
by the Transaction Documents.  The Company and each Purchaser shall consult with
each other in issuing any other press releases with respect to the  transactions
contemplated  hereby,  and neither the Company nor any Purchaser shall issue any
such press  release nor  otherwise  make any such public  statement  without the
prior  consent  of the  Company,  with  respect  to  any  press  release  of any
Purchaser,  or without the prior consent of each Purchaser,  with respect to any
press release of the Company,  which consent shall not  unreasonably be withheld
or  delayed,  except if such  disclosure  is  required by law, in which case the
disclosing  party shall  promptly  provide the other party with prior  notice of
such public  statement or  communication.  Notwithstanding  the  foregoing,  the
Company shall not publicly  disclose the name of any  Purchaser,  or include the
name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser,  except:
(a)  as  required  by  federal   securities  law  in  connection  with  (i)  any
registration  statement  contemplated by the  Registration  Rights Agreement and
(ii) the filing of final  Transaction  Documents  with the Commission and (b) to
the extent such disclosure is required by law or Trading Market regulations,  in
which case the Company  shall provide the  Purchasers  with prior notice of such
disclosure permitted under this clause (b).

4.5  Shareholder  Rights Plan.  No claim will be made or enforced by the Company
or, with the consent of the Company,  any other Person, that any Purchaser is an
"Acquiring  Person" under any control share acquisition,  business  combination,
poison pill  (including any  distribution  under a rights  agreement) or similar
anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan
or  arrangement,  by  virtue  of  receiving  Securities  under  the  Transaction
Documents or under any other agreement between the Company and the Purchasers.

4.6  Non-Public  Information.  Except  with  respect to the  material  terms and
conditions of the transactions  contemplated by the Transaction  Documents,  the
Company covenants and agrees that neither it, nor any other Person acting on its
behalf, 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 entered into a written  agreement with
the Company  regarding  the  confidentiality  and use of such  information.  The
Company  understands  and confirms that each  Purchaser  shall be relying on the
foregoing covenant in effecting transactions in securities of the Company.

                                       26
<PAGE>
4.7 Use of Proceeds.  Except as set forth on Schedule 4.7 attached  hereto,  the
Company shall use the net proceeds from the sale of the Securities hereunder for
working  capital  purposes  and  shall  not  use  such  proceeds:  (a)  for  the
satisfaction  of any portion of the Company's  debt (other than payment of trade
payables in the ordinary course of the Company's  business and prior practices),
(b) for the redemption of any Common Stock or Common Stock Equivalents,  (c) for
the settlement of any outstanding litigation or (d) in violation of FCPA or OFAC
regulations.

4.8  Indemnification  of  Purchasers.  Subject to the provisions of this Section
4.8, the Company  will  indemnify  and hold each  Purchaser  and its  directors,
officers,  shareholders,  members, partners, employees and agents (and any other
Persons  with a  functionally  equivalent  role of a Person  holding such titles
notwithstanding  a lack of such  title or any  other  title),  each  Person  who
controls such Purchaser  (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers,  shareholders,
agents,   members,   partners  or  employees  (and  any  other  Persons  with  a
functionally  equivalent role of a Person holding such titles  notwithstanding a
lack of such title or any other  title) of such  controlling  persons  (each,  a
"Purchaser Party") harmless from any and all losses,  liabilities,  obligations,
claims,  contingencies,  damages,  costs and expenses,  including all judgments,
amounts paid in  settlements,  court costs and  reasonable  attorneys'  fees and
costs of  investigation  that any such Purchaser  Party may suffer or incur as a
result  of or  relating  to (a)  any  breach  of  any  of  the  representations,
warranties,  covenants or agreements made by the Company in this Agreement or in
the  other  Transaction  Documents  or (b) any  action  instituted  against  the
Purchaser  Parties  in  any  capacity,  or  any  of  them  or  their  respective
Affiliates,  by any  stockholder  of the Company who is not an Affiliate of such
Purchaser Parties,  with respect to any of the transactions  contemplated by the
Transaction  Documents  (unless  such  action  is based  upon a  breach  of such
Purchaser Party's representations, warranties or covenants under the Transaction
Documents or any agreements or  understandings  such Purchaser  Parties may have
with any such  stockholder or any violations by such Purchaser  Parties of state
or federal  securities  laws or any  conduct  by such  Purchaser  Parties  which
constitutes fraud, gross negligence,  willful misconduct or malfeasance). If any
action  shall  be  brought  against  any  Purchaser  Party in  respect  of which
indemnity may be sought pursuant to this  Agreement,  such Purchaser Party shall
promptly notify the Company in writing,  and the Company shall have the right to
assume  the  defense  thereof  with  counsel  of  its  own  choosing  reasonably
acceptable to the Purchaser  Party.  Any Purchaser Party shall have the right to
employ  separate  counsel in any such  action  and  participate  in the  defense
thereof,  but the fees and expenses of such  counsel  shall be at the expense of
such Purchaser  Party except to the extent that (i) the  employment  thereof has
been  specifically  authorized  by the Company in writing,  (ii) the Company has
failed  after a  reasonable  period of time to assume such defense and to employ
counsel or (iii) in such action there is, in the reasonable  opinion of counsel,
a material  conflict on any material  issue  between the position of the Company
and the position of such  Purchaser  Party,  in which case the Company  shall be
responsible  for the  reasonable  fees  and  expenses  of no more  than one such
separate  counsel.  The Company will not be liable to any Purchaser  Party under
this Agreement (y) for any settlement by a Purchaser Party effected  without the
Company's prior written  consent,  which shall not be  unreasonably  withheld or
delayed; or (z) to the extent, but only to the extent that a loss, claim, damage
or liability  is  attributable  to any  Purchaser  Party's  breach of any of the
representations,  warranties,  covenants or  agreements  made by such  Purchaser
Party in this Agreement or in the other Transaction  Documents or any violations

                                       27
<PAGE>
by such Purchaser  Party of state or federal  securities  laws or any conduct by
such  Purchaser  Party  which  constitutes  fraud,  gross  negligence,   willful
misconduct  or  malfeasance.  The  indemnification  required by this Section 4.8
shall be made by periodic  payments of the amount  thereof  during the course of
the  investigation  or defense,  as and when bills are received or are incurred.
The indemnity  agreements  contained herein shall be in addition to any cause of
action or similar right of any Purchaser Party against the Company or others and
any liabilities the Company may be subject to pursuant to law.

4.9 Reservation of Common Stock. As of the date hereof, the Company has reserved
and the Company shall continue to reserve and keep available at all times,  free
of  preemptive  rights,  a  sufficient  number of shares of Common Stock for the
purpose of enabling the Company to issue Shares  pursuant to this  Agreement and
Warrant Shares pursuant to any exercise of the Warrants.

4.10 Listing of Common Stock.  The Company  hereby agrees to use best efforts to
maintain the listing or  quotation of the Common Stock on the Trading  Market on
which it is currently  listed,  and concurrently  with the Closing,  the Company
shall  apply to list or quote  all of the  Shares  and  Warrant  Shares  on such
Trading Market and promptly  secure the listing of all of the Shares and Warrant
Shares on such Trading Market, if applicable. The Company further agrees, if the
Company applies to have the Common Stock traded on any other Trading Market,  it
will then include in such application all of the Shares and Warrant Shares,  and
will take such  other  action as is  necessary  to cause all of the  Shares  and
Warrant  Shares to be listed or quoted on such other Trading  Market as promptly
as  possible.  The Company  will then take all action  reasonably  necessary  to
continue the listing or  quotation  and trading of its Common Stock on a Trading
Market and will comply in all respects with the Company's reporting,  filing and
other obligations under the bylaws or rules of the Trading Market.

4.11 Participation in Future Financing.

     (a) From the date hereof until the date that is the 12-month anniversary of
the Effective Date, upon any issuance by the Company or any of its  Subsidiaries
of Common Stock, Common Stock Equivalents for cash  consideration,  Indebtedness
or a combination  of units hereof (a  "Subsequent  Financing"),  each  Purchaser
shall  have the  right  to  participate  in up to an  amount  of the  Subsequent
Financing equal to 50% of the Subsequent Financing (the "Participation Maximum")
on the  same  terms,  conditions  and  price  provided  for  in  the  Subsequent
Financing.

     (b) At least five (5) Trading Days prior to the anticipated  closing of the
Subsequent  Financing,  the Company  shall  deliver to each  Purchaser a written
notice of its intention to effect a Subsequent Financing  ("Pre-Notice"),  which
Pre-Notice  shall ask such  Purchaser  if it wants to review the details of such
financing (such additional notice, a "Subsequent  Financing  Notice").  Upon the
request  of a  Purchaser,  and only  upon a  request  by such  Purchaser,  for a
Subsequent  Financing Notice, the Company shall promptly,  but no later than one
(1) Trading Day after such  request,  deliver a Subsequent  Financing  Notice to
such  Purchaser.  The Subsequent  Financing  Notice shall describe in reasonable
detail the proposed terms of such Subsequent  Financing,  the amount of proceeds
intended to be raised  thereunder and the Person or Persons through or with whom

                                       28
<PAGE>
such  Subsequent  Financing is proposed to be effected and shall  include a term
sheet or similar document relating thereto as an attachment.

     (c) Any Purchaser desiring to participate in such Subsequent Financing must
provide written notice to the Company by not later than 5:30 p.m. (New York City
time) on the fifth (5th) Trading Day after all of the  Purchasers  have received
the  Pre-Notice  that such Purchaser is willing to participate in the Subsequent
Financing,  the amount of such Purchaser's  participation,  and representing and
warranting that such Purchaser has such funds ready,  willing, and available for
investment on the terms set forth in the  Subsequent  Financing  Notice.  If the
Company  receives no such notice from a Purchaser as of such fifth (5th) Trading
Day,  such  Purchaser  shall be deemed to have notified the Company that it does
not elect to participate.

     (d) If by 5:30 p.m.  (New York City time) on the fifth  (5th)  Trading  Day
after all of the Purchasers have received the Pre-Notice,  notifications  by the
Purchasers of their  willingness to participate in the Subsequent  Financing (or
to cause their  designees to  participate)  is, in the aggregate,  less than the
total  amount of the  Subsequent  Financing,  then the  Company  may  effect the
remaining portion of such Subsequent Financing on the terms and with the Persons
set forth in the Subsequent Financing Notice.

     (e) If by 5:30 p.m.  (New York City time) on the fifth  (5th)  Trading  Day
after all of the Purchasers have received the Pre-Notice,  the Company  receives
responses to a Subsequent  Financing Notice from Purchasers  seeking to purchase
more than the aggregate amount of the Participation Maximum, each such Purchaser
shall have the right to purchase its Pro Rata Portion (as defined  below) of the
Participation   Maximum.   "Pro  Rata  Portion"  means  the  ratio  of  (x)  the
Subscription  Amount of Securities  purchased on the Closing Date by a Purchaser
participating  under  this  Section  4.11  and  (y)  the  sum of  the  aggregate
Subscription  Amounts  of  Securities  purchased  on  the  Closing  Date  by all
Purchasers participating under this Section 4.11 plus the aggregate subscription
amounts of investors party to securities purchase  agreement(s)  contemplated by
clause (d) in the definition of Exempt Issuance that are  participating  in such
Subsequent  Financing pursuant to participation rights granted to such investors
under such agreements that are substantially similar to this Section 4.11.

     (f) The  Company  must  provide  the  Purchasers  with a second  Subsequent
Financing Notice,  and the Purchasers will again have the right of participation
set forth above in this Section 4.11, if the Subsequent Financing subject to the
initial  Subsequent  Financing  Notice is not  consummated for any reason on the
terms set forth in such Subsequent  Financing  Notice within thirty (30) Trading
Days after the date of the initial Subsequent Financing Notice.

     (g) The Company and each  Purchaser  agree that if any Purchaser  elects to
participate in the Subsequent  Financing,  the transaction  documents related to
the Subsequent  Financing  shall not include any term or provision  whereby such
Purchaser shall be required to agree to any restrictions on trading as to any of
the Securities purchased hereunder or be required to consent to any amendment to
or  termination  of,  or grant  any  waiver,  release  or the  like  under or in

                                       29
<PAGE>
connection  with,  this  Agreement,  without the prior  written  consent of such
Purchaser.

     (h)  Notwithstanding  anything  to the  contrary in this  Section  4.11 and
unless otherwise  agreed to by such Purchaser,  the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent
Financing has been abandoned or shall  publicly  disclose its intention to issue
the securities in the Subsequent Financing, in either case in such a manner such
that  such  Purchaser  will not be in  possession  of any  material,  non-public
information,  by  the  tenth  (10th)  Business  Day  following  delivery  of the
Subsequent  Financing  Notice.  If by such tenth (10th)  Business Day, no public
disclosure  regarding a transaction with respect to the Subsequent Financing has
been made, and no notice  regarding the abandonment of such transaction has been
received  by such  Purchaser,  such  transaction  shall be  deemed  to have been
abandoned  and such  Purchaser  shall not be deemed to be in  possession  of any
material,  non-public  information  with  respect  to the  Company or any of its
Subsidiaries.

     (i)  Notwithstanding  the  foregoing,  this Section 4.11 shall not apply in
respect of (i) an Exempt  Issuance  or (ii) an  issuance  of  securities  of the
Company pursuant to the Equity Line Facility.

4.12 Subsequent Equity Sales.

     (a) From the date hereof until 90 days after the  Effective  Date,  neither
the Company nor any Subsidiary shall issue, enter into any agreement to issue or
announce  the  issuance  or proposed  issuance of any shares of Common  Stock or
Common Stock Equivalents.

     (b) From the date hereof until the second  anniversary  of the date hereof,
the Company shall be prohibited  from effecting or entering into an agreement to
effect any issuance by the Company or any of its Subsidiaries of Common Stock or
Common  Stock  Equivalents  (or a  combination  of units  thereof)  involving  a
Variable Rate Transaction.  "Variable Rate  Transaction"  means a transaction in
which the  Company  (i) issues or sells any debt or equity  securities  that are
convertible  into,  exchangeable  or  exercisable  for,  or include the right to
receive,  additional  shares of Common Stock  either (A) at a conversion  price,
exercise price or exchange rate or other price that is based upon, and/or varies
with,  the trading prices of or quotations for the shares of Common Stock at any
time after the initial issuance of such debt or equity  securities or (B) with a
conversion,  exercise or  exchange  price that is subject to being reset at some
future date after the initial  issuance of such debt or equity  security or upon
the occurrence of specified or contingent events directly or indirectly  related
to the  business of the Company or the market for the Common Stock or (ii) other
than the Equity Line  Facility,  enters into any agreement,  including,  but not
limited to, an equity line of credit,  whereby the Company may issue  securities
at a future  determined  price.  Any  Purchaser  shall  be  entitled  to  obtain
injunctive  relief  against  the Company to preclude  any such  issuance,  which
remedy shall be in addition to any right to collect damages.

                                       30
<PAGE>
     (c)  Notwithstanding  the  foregoing,  this Section 4.12 shall not apply in
respect of (i) an Exempt  Issuance,  except  that no Variable  Rate  Transaction
shall be an Exempt  Issuance  or (ii) the  issuance  of up to $3  million of the
Company's securities provided that such securities, or the securities underlying
such securities, are not included for registration on any registration statement
filed with the Commission on or before the 90th day following the Effective Date
(provided  that this  provision  shall not prohibit the Company from filing with
the Commission any amendment to the pending  registration  statement on Form S-1
(File No.  333-179745) and provided that the warrant  coverage on such issuances
not exceed the warrant  coverage  provided for under the  Transaction  Documents
(notwithstanding  the restriction on  registration,  which may include up to, in
the aggregate, $3 million of draw downs under the Equity Line Facility).

4.13 Equal Treatment of Purchasers. No consideration (including any modification
of any Transaction  Document) shall be offered or paid to any Person to amend or
consent to a waiver or  modification  of any provision of this Agreement  unless
the same  consideration is also offered to all of the parties to this Agreement.
For clarification  purposes, this provision constitutes a separate right granted
to each  Purchaser by the Company and negotiated  separately by each  Purchaser,
and is intended for the Company to treat the Purchasers as a class and shall not
in any way be construed as the  Purchasers  acting in concert or as a group with
respect to the purchase, disposition or voting of Securities or otherwise.

4.14 Certain Transactions and Confidentiality. Each Purchaser, severally and not
jointly with the other Purchasers,  covenants that neither it, nor any Affiliate
acting on its behalf or pursuant to any  understanding  with it will execute any
purchases or sales,  including Short Sales,  of any of the Company's  securities
during the period  commencing with the execution of this Agreement and ending at
such  time  that the  transactions  contemplated  by this  Agreement  are  first
publicly announced pursuant to the initial press release as described in Section
4.4.  Each  Purchaser,  severally  and not  jointly  with the other  Purchasers,
covenants  that  until  such  time  as the  transactions  contemplated  by  this
Agreement  are publicly  disclosed by the Company  pursuant to the initial press
release  as  described  in  Section  4.4,  such   Purchaser  will  maintain  the
confidentiality  of  the  existence  and  terms  of  this  transaction  and  the
information included in the Transaction  Documents and the Disclosure Schedules.
Notwithstanding the foregoing,  and  notwithstanding  anything contained in this
Agreement to the contrary,  the Company  expressly  acknowledges and agrees that
(i) no Purchaser makes any  representation,  warranty or covenant hereby that it
will not engage in effecting transactions in any securities of the Company after
the time that the transactions contemplated by this Agreement are first publicly
announced  pursuant to the initial  press  release as  described in Section 4.4,
(ii)  no  Purchaser  shall  be  restricted  or  prohibited  from  effecting  any
transactions  in any  securities  of the Company in accordance  with  applicable
securities  laws from and after the time that the  transactions  contemplated by
this  Agreement  are first  publicly  announced  pursuant to the  initial  press
release as described  in Section 4.4 and (iii) no Purchaser  shall have any duty
of  confidentiality to the Company or its Subsidiaries after the issuance of the
initial  press  release  as  described  in  Section  4.4.   Notwithstanding  the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser's
assets and the  portfolio  managers have no direct  knowledge of the  investment
decisions  made  by the  portfolio  managers  managing  other  portions  of such

                                       31
<PAGE>
Purchaser's  assets,  the covenant set forth above shall only apply with respect
to the portion of assets managed by the portfolio  manager(s) that were aware of
the proposed terms of the transactions contemplated hereunder.

4.15 Form D; Blue Sky Filings.  The Company  agrees to timely file a Form D with
respect to the Securities as required  under  Regulation D and to provide a copy
thereof,  promptly  upon request of any  Purchaser.  The Company shall take such
action as the Company shall reasonably determine is necessary in order to obtain
an exemption  for, or to qualify the  Securities  for, sale to the Purchasers at
the Closing under applicable  securities or "Blue Sky" laws of the states of the
United States,  and shall provide evidence of such actions promptly upon request
of any Purchaser.

4.16 [RESERVED].

4.17 Acknowledgment of Dilution.  The Company  acknowledges that the issuance of
the Securities may result in dilution of the outstanding shares of Common Stock,
which dilution may be substantial under certain market  conditions.  The Company
further  acknowledges  that its  obligations  under the  Transaction  Documents,
including,  without  limitation,  its obligation to issue the Shares and Warrant
Shares pursuant to the Transaction Documents, are unconditional and absolute and
not  subject  to any  right  of  set  off,  counterclaim,  delay  or  reduction,
regardless  of the effect of any such dilution or any claim the Company may have
against any Purchaser and  regardless of the dilutive  effect that such issuance
may have on the ownership of the other stockholders of the Company.

4.18 Per Share Purchase Price Protection.

     (a) As to each  Purchaser,  from the  date  hereof  until  the one (1) year
anniversary of the Closing Date, if and whenever the Company or any  Subsidiary,
directly or  indirectly,  issues or sells (or in accordance  with the provisions
set forth in Section  3(b) of the Warrants is deemed to have issued or sold) any
shares of Common Stock or Common Stock  Equivalents  (including  the issuance or
sale of shares of Common Stock or Common Stock  Equivalents  owned or held by or
for the account of the  Company) for  consideration  per share that is less than
the Per Share Purchase Price (adjusted for stock splits, combinations, dividends
and the like occurring after the Closing Date) (such lesser price is referred to
herein as the "Discounted Per Share Purchase Price") (the foregoing, a "Dilutive
Issuance"),  then immediately  after such Dilutive  Issuance,  automatically and
without any  obligation of or notice to each  Purchaser,  the Per Share Purchase
Price paid herein  shall be  amended,  reduced,  restated  and deemed to be, the
Discounted Per Share Purchase Price and the number of Shares issuable under this
Agreement  shall be deemed  increased  to the  Subscription  Amount paid by such
Purchaser  (as set forth on the  signature  page and  acceptance  pages  hereto)
divided by the Discounted Per Share Purchase Price,  and, each Purchaser (or its
rightful  assigns)  shall have the absolute  right to receive  without giving or
receiving any form of notice or making any form of demand, and the Company shall
immediately  and  unconditionally  issue  without  restriction  (other  than  as
provided in this Agreement), such number of Additional Shares (as defined below)
of Common Stock as equals the sum of the Subscription Amount paid hereby by such
Purchaser,  divided by the Discounted Per Share Purchase Price,  less the number
Shares  previously  issued to the Purchaser.  For purposes of this Section 4.15,

                                       32
<PAGE>
"Additional Shares" means, with respect to the applicable  Purchaser,  shares of
Common Stock issued to such  Purchaser  pursuant to this Section 4.15  (adjusted
for stock  splits,  combinations,  dividends  and the like  occurring  after the
Closing Date).  Notwithstanding  anything  herein to the contrary,  in the event
that the Registration Statement is then effective the Additional Shares shall be
issued  pursuant  to the  Registration  Statement  free of any  restrictions  or
legends via the DWAC system to a DTC account specified by the Purchaser,  and if
not, in certificated form with a legend; provided, however, that such Additional
Shares  shall then be subject to  Section  4.1 with  respect to legend  removal.
After any  issuance  of  Additional  Shares,  the Per Share  Purchase  Price for
purposes  of  evaluating  any  future  sale of  Common  Stock  or  Common  Stock
Equivalents by the Company  pursuant to this Section 4.15 or pursuant to Section
3(b) of the  Warrant  shall be  deemed  to be the  lowest  Discounted  Per Share
Purchase Price for which Additional  Shares were previously issued (adjusted for
stock splits, combinations,  dividends and the like occurring after the issuance
of such Additional Shares).

     (b) In implementation  of the foregoing,  to the extent that an issuance of
Additional  Shares  would  result  in a  Purchaser  or  any  of  its  affiliates
beneficially owning in excess of 4.99% (the "Maximum  Percentage") of the Common
Stock,  then the Company  shall  initially  issue only such number of Additional
Shares  that would  result in such  Purchaser  (together  with such  Purchaser's
affiliates) beneficially owning the Maximum Percentage of the Common Stock, and,
except as otherwise provided below, no other Additional Shares shall be issuable
under this Section 4.18. After such initial  issuance,  and until all Additional
Shares which  otherwise would have been issued under this Section 4.18 have been
issued,  from time to time the Company  will issue such number of such  unissued
Additional Shares so that such Purchaser (together such Purchaser's  affiliates)
will  beneficially  own only the Maximum  Percentage of the Common  Stock.  Such
Purchaser  shall make  written  representations  and  warranties  to the Company
regarding its (together with its affiliates') beneficial ownership to effectuate
the foregoing. The Maximum Percentage limitation contained in this paragraph and
the limitation on exercise  contained in Section 2(e) of the Warrants  issued to
such  Purchaser  pursuant to this  Agreement  shall be  coordinated  so that the
aggregate  beneficial ownership of such Purchaser (together with its affiliates)
does not exceed the Maximum  Percentage  limitation.  In  connection  therewith,
issuances  pursuant to this Section 4.18 shall take precedence over issuances of
any Warrant Shares issuable to such Purchaser.  The provisions of this paragraph
shall be implemented in a manner  otherwise than in strict  conformity  with the
terms this paragraph to correct this paragraph (or any portion hereof) which may
be defective or inconsistent  with the intended  Maximum  Percentage  beneficial
ownership  limitation  herein  contained  or  to  make  changes  or  supplements
necessary  or  desirable  to  properly  give effect to such  Maximum  Percentage
limitation. The limitations contained in this paragraph shall apply to assignees
of such Purchaser hereunder. The holders of Common Stock of the Company shall be
third party  beneficiaries  of this paragraph and the Company may not waive this
paragraph  without the consent of holders of a majority of its Common Stock. For
the purposes of this paragraph,  beneficial ownership and all determinations and
calculations  (including,  without  limitation,  with respect to calculations of
percentage  ownership)  shall be determined in accordance  with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder.

                                       33
<PAGE>
     (c) If shares of Common Stock or Common Stock  Equivalents are issued for a
consideration  other than cash,  the per share  price shall be the fair value of
such  consideration as determined in good faith by the Board of Directors of the
Company.  For purposes of this Section 4.18, in connection  with the issuance or
sale of  Common  Stock  Equivalents,  the price per share for which one share of
Common Stock is issuable upon the conversion, exercise or exchange of any Common
Stock  Equivalents  shall  be  equal  to  the  sum  of  the  lowest  amounts  of
consideration (if any) received or receivable by the Company with respect to one
share of Common Stock upon the issuance or sale of such Common Stock Equivalents
and upon conversion,  exercise or exchange of such Common Stock Equivalents. The
Company may not refuse to issue to a Purchaser the Additional  Shares  hereunder
based on any claim that such Purchaser or any one associated or affiliated  with
such  Purchaser has been engaged in any  violation of law,  agreement or for any
other reason, unless, an injunction from a court, on notice,  restraining and or
enjoining an issuance  hereunder  shall have been sought and  obtained.  Nothing
herein  shall  limit a  Purchaser's  right  to  pursue  actual  damages  for the
Company's failure to deliver  Additional  Shares  hereunder,  and such Purchaser
shall have the right to pursue all remedies  available to it at law or in equity
including,   without  limitation,   a  decree  of  specific  performance  and/or
injunctive  relief. On the date of closing of any transaction  pursuant to which
securities  are issued for a Discounted Per Share  Purchase  Price,  the Company
shall  give  each of the  Purchasers  written  notice  thereof.  Notwithstanding
anything to the contrary  herein in this Section  4.18,  this Section 4.18 shall
not apply to an Exempt  Issuance.  The Company  acknowledges and agrees that the
right  set  forth  in  this  Section  4.18 is a right  granted  by the  Company,
separately, to each Purchaser.

                                   ARTICLE V.
                                  MISCELLANEOUS

5.1 Termination.  This Agreement may be terminated by any Purchaser,  as to such
Purchaser's  obligations hereunder only and without any effect whatsoever on the
obligations  between the Company and the other Purchasers,  by written notice to
the other parties,  if the Closing has not been  consummated on or before August
8, 2012; provided,  however,  that such termination will not affect the right of
any party to sue for any breach by any other party (or parties).

5.2 Fees and Expenses. At the Closing, the Company has agreed to reimburse Anson
Investments Master Fund, L.P. ("Anson") the  non-accountable  sum of $20,000 for
its legal fees and expenses, $7,500 of which has been paid prior to the Closing.
Accordingly,  in lieu of the foregoing payments, the aggregate amount that Anson
shall pay for the  Securities at the Closing shall be reduced by $12,500 in lieu
thereof.  Except as  expressly  set forth in the  Transaction  Documents  to the
contrary,  each party shall pay the fees and expenses of its advisers,  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.  The Company shall pay all Transfer  Agent fees
(including, without limitation, any fees required for same-day processing of any
instruction letter delivered by the Company and any exercise notice delivered by
a Purchaser),  stamp taxes and other taxes and duties levied in connection  with
the delivery of any Securities to the Purchasers.

                                       34
<PAGE>
5.3 Entire Agreement. The Transaction Documents,  together with the exhibits and
schedules thereto,  contain the entire understanding of the parties with respect
to the subject matter hereof and thereof and supersede all prior  agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

5.4 Notices.  Any and all notices or other communications or deliveries required
or  permitted to be provided  hereunder  shall be in writing and shall be deemed
given and  effective on the earliest of: (a) the date of  transmission,  if such
notice or  communication  is delivered via facsimile at the facsimile number set
forth on the signature  pages attached hereto at or prior to 5:30 p.m. (New York
City  time)  on a  Trading  Day,  (b) the next  Trading  Day  after  the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile  number set forth on the signature pages attached hereto on a day that
is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading
Day, (c) the second (2nd) Trading Day following the date of mailing,  if sent by
U.S. nationally  recognized overnight courier service or (d) upon actual receipt
by the party to whom such notice is  required to be given.  The address for such
notices and communications shall be as set forth on the signature pages attached
hereto.

5.5 Amendments; Waivers. No provision of this Agreement may be waived, modified,
supplemented or amended except in a written instrument signed, in the case of an
amendment, by the Company and the Purchasers holding at least 67% in interest of
the  Securities  then  outstanding  or,  in the case of a  waiver,  by the party
against whom  enforcement of any such waived  provision is sought.  No waiver 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  subsequent  default  or a  waiver  of any  other  provision,  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.

5.6 Headings.  The headings herein are for convenience only, do not constitute a
part of this  Agreement  and shall  not be deemed to limit or affect  any of the
provisions hereof.

5.7  Successors and Assigns.  This Agreement  shall be binding upon and inure to
the benefit of the parties  and their  successors  and  permitted  assigns.  The
Company may not assign this  Agreement  or any rights or  obligations  hereunder
without the prior written consent of each Purchaser (other than by merger).  Any
Purchaser may assign any or all of its rights under this Agreement to any Person
to whom such Purchaser  assigns or transfers any Securities,  provided that such
transferee  agrees in  writing  to be bound,  with  respect  to the  transferred
Securities,  by the  provisions of the  Transaction  Documents that apply to the
"Purchasers."

5.8 No Third-Party Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective  successors and permitted assigns and is
not for the benefit of, nor may any  provision  hereof be enforced by, any other
Person, except as otherwise set forth in Section 4.8 and this Section 5.8.

5.9  Governing  Law.  All  questions  concerning  the  construction,   validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each

                                       35
<PAGE>
party  agrees  that  all  legal  proceedings   concerning  the  interpretations,
enforcement and defense of the  transactions  contemplated by this Agreement and
any other Transaction  Documents  (whether brought against a party hereto or its
respective affiliates,  directors,  officers,  shareholders,  partners, members,
employees  or agents)  shall be commenced  exclusively  in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive  jurisdiction  of the state and federal courts sitting in the City
of New York,  Borough of Manhattan for the adjudication of any dispute hereunder
or in  connection  herewith  or with  any  transaction  contemplated  hereby  or
discussed  herein  (including  with  respect  to the  enforcement  of any of the
Transaction Documents),  and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding,  any claim that it is not personally  subject
to the jurisdiction of any such court,  that such suit,  action or proceeding is
improper or is an  inconvenient  venue for such  proceeding.  Each party  hereby
irrevocably  waives  personal  service of process and consents to process  being
served in any such suit,  action or  proceeding  by mailing a copy  thereof  via
registered or certified  mail or overnight  delivery (with evidence of delivery)
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 contained herein shall be deemed to limit in
any way any right to serve  process in any other  manner  permitted  by law.  If
either party shall commence an action or proceeding to enforce any provisions of
the  Transaction  Documents,  then in addition to the obligations of the Company
under Section 4.8, the prevailing party in such action, suit or proceeding shall
be reimbursed by the other party for its  reasonable  attorneys'  fees and other
costs and expenses incurred with the investigation,  preparation and prosecution
of such action or proceeding.

5.10 Survival. The representations and warranties contained herein shall survive
the Closing and the delivery of the Securities.

5.11 Execution. This Agreement may be executed in two or more counterparts,  all
of which when taken  together shall be considered one and the same agreement and
shall  become  effective  when  counterparts  have been signed by each party and
delivered to each other  party,  it being  understood  that the parties need not
sign the same  counterpart.  In the event that any  signature  is  delivered  by
facsimile  transmission or by e-mail delivery of a ".pdf" format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or ".pdf" signature page were an original thereof.

5.12  Severability.  If any term,  provision,  covenant or  restriction  of this
Agreement is held by a court of competent  jurisdiction to be invalid,  illegal,
void or  unenforceable,  the remainder of the terms,  provisions,  covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected,  impaired or  invalidated,  and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

                                       36
<PAGE>
5.13 Rescission and Withdrawal Right.  Notwithstanding  anything to the contrary
contained in (and without  limiting any similar  provisions of) any of the other
Transaction  Documents,  whenever  any  Purchaser  exercises a right,  election,
demand or option  under a  Transaction  Document and the Company does not timely
perform its related  obligations within the periods therein provided,  then such
Purchaser may rescind or withdraw, in its sole discretion from time to time upon
written notice to the Company, any relevant notice,  demand or election in whole
or in part  without  prejudice  to its  future  actions  and  rights;  provided,
however,  that in the case of a  rescission  of an  exercise  of a Warrant,  the
applicable  Purchaser  shall be  required  to return any shares of Common  Stock
subject to any such rescinded  exercise notice  concurrently  with the return to
such  Purchaser  of the  aggregate  exercise  price paid to the Company for such
shares and the  restoration  of such  Purchaser's  right to acquire  such shares
pursuant to such  Purchaser's  Warrant  (including,  issuance  of a  replacement
warrant certificate evidencing such restored right).

5.14 Replacement of Securities.  If any certificate or instrument evidencing any
Securities is mutilated,  lost, stolen or destroyed,  the Company shall issue or
cause to be  issued  in  exchange  and  substitution  for and upon  cancellation
thereof (in the case of mutilation),  or in lieu of and substitution therefor, a
new  certificate  or  instrument,  but only upon receipt of evidence  reasonably
satisfactory to the Company of such loss,  theft or  destruction.  The applicant
for a new certificate or instrument under such circumstances  shall also pay any
reasonable third-party costs (including customary indemnity) associated with the
issuance of such replacement Securities.

5.15  Remedies.  In addition to being  entitled to exercise all rights  provided
herein or granted by law, including recovery of damages,  each of the Purchasers
and the Company will be entitled to specific  performance  under the Transaction
Documents.  The  parties  agree  that  monetary  damages  may  not  be  adequate
compensation  for any loss  incurred  by  reason of any  breach  of  obligations
contained  in the  Transaction  Documents  and hereby  agree to waive and not to
assert in any action for specific performance of any such obligation the defense
that a remedy at law would be adequate.

5.16  Payment  Set Aside.  To the  extent  that the  Company  makes a payment or
payments to any Purchaser  pursuant to any  Transaction  Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such  enforcement  or exercise or any part thereof are  subsequently
invalidated,  declared to be fraudulent or  preferential,  set aside,  recovered
from, disgorged by or are required to be refunded,  repaid or otherwise restored
to the  Company,  a  trustee,  receiver  or  any  other  Person  under  any  law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable  cause of action),  then to the extent of any such  restoration
the  obligation  or part thereof  originally  intended to be satisfied  shall be
revived and  continued  in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

5.17 Independent  Nature of Purchasers'  Obligations and Rights. The obligations
of each Purchaser under any Transaction  Document are several and not joint with
the obligations of any other Purchaser, and no Purchaser shall be responsible in
any way for the performance or  non-performance  of the obligations of any other
Purchaser under any Transaction  Document.  Nothing  contained  herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereof

                                       37
<PAGE>
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. 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.  Each  Purchaser has been  represented  by its own
separate  legal  counsel  in its  review  and  negotiation  of  the  Transaction
Documents.  For reasons of  administrative  convenience only, each Purchaser and
its respective  counsel have chosen to communicate with the Company through EGS.
EGS does not represent any of the  Purchasers  and only  represents  Anson.  The
Company  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 any of the Purchasers.

5.18 Liquidated Damages. The Company's obligations to pay any partial liquidated
damages or other amounts owing under the  Transaction  Documents is a continuing
obligation  of the  Company  and shall not  terminate  until all unpaid  partial
liquidated  damages and other  amounts have been paid  notwithstanding  the fact
that the  instrument  or  security  pursuant  to which such  partial  liquidated
damages or other amounts are due and payable shall have been canceled.

5.19  Saturdays,  Sundays,  Holidays,  etc. If the last or appointed day for the
taking of any action or the  expiration of any right  required or granted herein
shall not be a Business  Day, then such action may be taken or such right may be
exercised on the next succeeding Business Day.

5.20  Construction.  The parties agree that each of them and/or their respective
counsel have reviewed and had an opportunity to revise the Transaction Documents
and,  therefore,  the  normal  rule  of  construction  to the  effect  that  any
ambiguities are to be resolved  against the drafting party shall not be employed
in the interpretation of the Transaction Documents or any amendments thereto. In
addition, each and every reference to share prices and shares of Common Stock in
any Transaction  Document shall be subject to adjustment for reverse and forward
stock splits, stock dividends, stock combinations and other similar transactions
of the Common Stock that occur after the date of this Agreement.

5.21  WAIVER  OF  JURY  TRIAL.  IN  ANY  ACTION,  SUIT,  OR  PROCEEDING  IN  ANY
JURISDICTION  BROUGHT BY ANY PARTY  AGAINST ANY OTHER  PARTY,  THE PARTIES  EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW,
HEREBY  ABSOLUTELY,  UNCONDITIONALLY,  IRREVOCABLY AND EXPRESSLY  WAIVES FOREVER
TRIAL BY JURY.

                            (Signature Pages Follow)

                                       38
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

STEVIA CORP.                                Address for Notice:

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

With a copy to (which shall not constitute notice):

Greenberg Traurig LLP
1201 K Street, Suite 1100
Sacramento, CA 95814
Attn: Mark C. Lee, Esq.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       39
<PAGE>
        [PURCHASER SIGNATURE PAGES TO STEV SECURITIES PURCHASE AGREEMENT]

     IN WITNESS WHEREOF,  the undersigned  have caused this Securities  Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

Name of Purchaser:
                  --------------------------------------------------------------

Signature of Authorized Signatory of Purchaser:
                                               ---------------------------------
Name of Authorized Signatory:
                             ---------------------------------------------------
Title of Authorized Signatory:
                              --------------------------------------------------
Email Address of Authorized Signatory:
                                      ------------------------------------------
Facsimile Number of Authorized Signatory:
                                         ---------------------------------------
Address for Notice to Purchaser:

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

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

Address for  Delivery of  Securities  to  Purchaser  (if not same as address for
notice):

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

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

Subscription Amount: $
                      ---------------------
Shares:
        -----------------------------------
Warrant Shares:
                ---------------------------
EIN Number:
           --------------------------------

                           [SIGNATURE PAGES CONTINUE]

                                       40EXHIBIT 10.2

                                                                       EXHIBIT C

NEITHER THIS SECURITY NOR THE  SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                                  STEVIA CORP.

Warrant Shares: ______                     Initial Exercise Date: August 6, 2012

     THIS COMMON STOCK  PURCHASE  WARRANT (the  "Warrant")  certifies  that, for
value received,  _____________  or its assigns (the "Holder") is entitled,  upon
the  terms  and  subject  to the  limitations  on  exercise  and the  conditions
hereinafter  set forth,  at any time on or after the date hereof  (the  "Initial
Exercise  Date") and on or prior to the close of  business  on the five (5) year
anniversary  of the  Initial  Exercise  Date (the  "Termination  Date")  but not
thereafter,   to  subscribe  for  and  purchase  from  Stevia  Corp.,  a  Nevada
corporation  (the  "Company"),  up to ______  shares (as  subject to  adjustment
hereunder,  the "Warrant  Shares") of Common  Stock.  The purchase  price of one
share of Common Stock under this Warrant  shall be equal to the Exercise  Price,
as defined in Section 2(b).

Section 1. Definitions.  Capitalized terms used and not otherwise defined herein
shall have the meanings set forth in that certain Securities  Purchase Agreement
(the  "Purchase  Agreement"),  dated  August 1, 2012,  among the Company and the
purchasers signatory thereto.

Section 2. Exercise.

     a) Exercise of Warrant. Exercise of the purchase rights represented by this
Warrant may be made,  in whole or in part,  at any time or times on or after the
Initial  Exercise Date and on or before the Termination  Date by delivery to the
Company (or such other  office or agency of the Company as it may  designate  by
notice  in  writing  to the  registered  Holder  at the  address  of the  Holder
appearing on the books of the Company) of a duly executed  facsimile copy of the
<PAGE>
Notice of Exercise form annexed  hereto and within three (3) Trading Days of the
date said Notice of Exercise is delivered to the Company, the Company shall have
received payment of the aggregate Exercise Price of the shares thereby purchased
by wire  transfer  or  cashier's  check  drawn on a United  States  bank or,  if
available, pursuant to the cashless exercise procedure specified in Section 2(c)
below.  Notwithstanding anything herein to the contrary, the Holder shall not be
required to  physically  surrender  this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available  hereunder and the Warrant has
been exercised in full, in which case,  the Holder shall  surrender this Warrant
to the Company for  cancellation  within  three (3) Trading Days of the date the
final Notice of Exercise is delivered to the Company.  Partial exercises of this
Warrant  resulting  in  purchases  of a portion  of the total  number of Warrant
Shares  available  hereunder  shall have the effect of lowering the  outstanding
number  of  Warrant  Shares  purchasable  hereunder  in an  amount  equal to the
applicable number of Warrant Shares purchased.  The Holder and the Company shall
maintain  records showing the number of Warrant Shares purchased and the date of
such  purchases.  The  Company  shall  deliver  any  objection  to any Notice of
Exercise Form within one (1) Business Day of receipt of such notice.  THE HOLDER
AND ANY ASSIGNEE, BY ACCEPTANCE OF THIS WARRANT,  ACKNOWLEDGE AND AGREE THAT, BY
REASON OF THE PROVISIONS OF THIS PARAGRAPH,  FOLLOWING THE PURCHASE OF A PORTION
OF THE WARRANT  SHARES  HEREUNDER,  THE NUMBER OF WARRANT  SHARES  AVAILABLE FOR
PURCHASE  HEREUNDER AT ANY GIVEN TIME MAY BE LESS THAN THE AMOUNT  STATED ON THE
FACE HEREOF.

     b) Exercise  Price.  The exercise price per share of the Common Stock under
this Warrant shall be $0.6405  subject to adjustment  hereunder  (the  "Exercise
Price").

     c) Cashless Exercise. If at any time after the six month anniversary of the
date of the Purchase  Agreement,  there is no effective  Registration  Statement
registering,  or no current prospectus  available for, the resale of the Warrant
Shares by the Holder,  then this Warrant may also be  exercised,  in whole or in
part,  at such time by means of a "cashless  exercise" in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained
by dividing [(A-B) (X)] by (A), where:

     (A)  = the VWAP on the Trading Day immediately  preceding the date on which
          Holder  elects  to  exercise  this  Warrant  by means  of a  "cashless
          exercise," as set forth in the applicable Notice of Exercise;

     (B)  = the Exercise Price of this Warrant, as adjusted hereunder; and

     (X)  = the number of Warrant Shares that would be issuable upon exercise of
          this  Warrant  in  accordance  with the terms of this  Warrant if such
          exercise  were by  means of a cash  exercise  rather  than a  cashless
          exercise.

     Notwithstanding  anything herein to the contrary,  on the Termination Date,
this Warrant shall be automatically  exercised via cashless exercise pursuant to
this Section 2(c).

                                       2
<PAGE>
     d) Mechanics of Exercise.

          i. Delivery of Warrant Shares Upon Exercise.  Warrant Shares purchased
hereunder  shall be transmitted by the Transfer Agent to the Holder by crediting
the account of the  Holder's  prime  broker with The  Depository  Trust  Company
through its Deposit or Withdrawal at Custodian system ("DWAC") if the Company is
then a  participant  in  such  system  and  either  (A)  there  is an  effective
registration  statement  permitting  the  issuance of the  Warrant  Shares to or
resale of the Warrant  Shares by the Holder or (B) the shares are  eligible  for
resale by the Holder without volume or  manner-of-sale  limitations  pursuant to
Rule 144,  and  otherwise by physical  delivery to the address  specified by the
Holder in the  Notice of  Exercise  by the date that is three (3)  Trading  Days
after the latest of (A) the  delivery to the Company of the Notice of  Exercise,
(B)  surrender of this Warrant (if  required),  and (C) payment of the aggregate
Exercise Price as set forth above (including by cashless exercise, if permitted)
(such date,  the "Warrant  Share  Delivery  Date").  The Warrant Shares shall be
deemed to have been issued,  and Holder or any other person so  designated to be
named  therein  shall be deemed to have become a holder of record of such shares
for all purposes, as of the date the Warrant has been exercised, with payment to
the Company of the Exercise  Price (or by cashless  exercise,  if permitted) and
all  taxes  required  to be paid by the  Holder,  if any,  pursuant  to  Section
2(d)(vi) prior to the issuance of such shares, having been paid.

          ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have
been exercised in part,  the Company shall,  at the request of a Holder and upon
surrender  of this Warrant  certificate,  at the time of delivery of the Warrant
Shares,  deliver to the Holder a new Warrant evidencing the rights of the 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.

          iii.  Rescission  Rights.  If the Company  fails to cause the Transfer
Agent to transmit to the Holder the Warrant Shares  pursuant to Section  2(d)(i)
by the second Trading Day following the Warrant Share  Delivery  Date,  then the
Holder will have the right to rescind such exercise.

          iv.  Compensation  for  Buy-In on Failure  to Timely  Deliver  Warrant
Shares Upon Exercise.  In addition to any other rights  available to the Holder,
if the Company  fails to cause the Transfer  Agent to transmit to the Holder the
Warrant  Shares  pursuant  to an  exercise  on or before the second  Trading Day
following the Warrant Share  Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market  transaction or otherwise)
or the Holder's  brokerage firm otherwise  purchases,  shares of Common Stock to

                                       3
<PAGE>
deliver in  satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated  receiving upon such exercise (a "Buy-In"),  then the Company
shall  (A) pay in cash to the  Holder  the  amount,  if any,  by  which  (x) the
Holder's total purchase price (including brokerage commissions,  if any) for the
shares  of  Common  Stock  so  purchased  exceeds  (y) the  amount  obtained  by
multiplying  (1) the number of Warrant  Shares that the Company was  required to
deliver to the Holder in  connection  with the  exercise  at issue times (2) the
price at which  the sell  order  giving  rise to such  purchase  obligation  was
executed,  and (B) at the option of the Holder,  either reinstate the portion of
the Warrant and equivalent  number of Warrant Shares for which such exercise was
not honored (in which case such exercise  shall be deemed  rescinded) or deliver
to the Holder the number of shares of Common  Stock that would have been  issued
had the Company  timely  complied  with its exercise  and  delivery  obligations
hereunder.  For  example,  if the Holder  purchases  Common Stock having a total
purchase  price of  $11,000  to  cover a Buy-In  with  respect  to an  attempted
exercise of shares of Common Stock with an  aggregate  sale price giving rise to
such  purchase  obligation  of  $10,000,  under  clause  (A) of the  immediately
preceding  sentence the Company shall be required to pay the Holder $1,000.  The
Holder shall provide the Company  written notice  indicating the amounts payable
to the  Holder in  respect  of the Buy-In  and,  upon  request  of the  Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder's right
to pursue any other  remedies  available  to it  hereunder,  at law or in equity
including,   without  limitation,   a  decree  of  specific  performance  and/or
injunctive relief with respect to the Company's failure to timely deliver shares
of Common Stock upon  exercise of the Warrant as required  pursuant to the terms
hereof.

          v. No  Fractional  Shares  or  Scrip.  No  fractional  shares or scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any  fraction of a share  which the Holder  would  otherwise  be
entitled to purchase upon such  exercise,  the Company  shall,  at its election,
either pay a cash  adjustment  in respect  of such final  fraction  in an amount
equal to such fraction  multiplied by the Exercise Price or round up to the next
whole share.

          vi. Charges,  Taxes and Expenses.  Issuance of Warrant Shares shall be
made  without  charge  to the  Holder  for any  issue or  transfer  tax or other
incidental  expense in respect of the issuance of Warrant  Shares,  all of which
taxes and expenses  shall be paid by the Company,  and such Warrant Shares shall
be issued in the name of the Holder or in such name or names as may be  directed
by the Holder;  provided,  however, that in the event that Warrant Shares are to
be  issued  in a name  other  than the name of the  Holder,  this  Warrant  when
surrendered  for exercise shall be  accompanied by the Assignment  Form attached
hereto duly  executed by the Holder and the Company may require,  as a condition
thereto,  the payment of a sum  sufficient  to reimburse it for any transfer tax
incidental  thereto.  The Company shall pay all Transfer Agent fees required for
same-day processing of any Notice of Exercise.

                                       4
<PAGE>
          vii.  Closing of Books.  The  Company  will not close its  stockholder
books or records in any  manner  which  prevents  the  timely  exercise  of this
Warrant, pursuant to the terms hereof.

     e) Holder's Exercise Limitations. The Company shall not effect any exercise
of this  Warrant,  and a Holder shall not have the right to exercise any portion
of this Warrant,  pursuant to Section 2 or  otherwise,  to the extent that after
giving effect to such  issuance  after  exercise as set forth on the  applicable
Notice of Exercise,  the Holder (together with the Holder's Affiliates,  and any
other Persons  acting as a group together with the Holder or any of the Holder's
Affiliates),  would  beneficially  own in  excess  of the  Beneficial  Ownership
Limitation  (as defined  below).  For purposes of the  foregoing  sentence,  the
number of  shares  of Common  Stock  beneficially  owned by the  Holder  and its
Affiliates  shall  include the number of shares of Common  Stock  issuable  upon
exercise of this Warrant with respect to which such determination is being made,
but shall  exclude the number of shares of Common  Stock which would be issuable
upon  (i)  exercise  of the  remaining,  nonexercised  portion  of this  Warrant
beneficially  owned by the Holder or any of its  Affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including,  without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion  or exercise  analogous to the  limitation
contained  herein  beneficially  owned by the  Holder or any of its  Affiliates.
Except as set forth in the  preceding  sentence,  for  purposes of this  Section
2(e),  beneficial ownership shall be calculated in accordance with Section 13(d)
of the Exchange Act and the rules and  regulations  promulgated  thereunder,  it
being  acknowledged  by the Holder that the Company is not  representing  to the
Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and the Holder is solely  responsible for any schedules required to be filed
in accordance  therewith.  To the extent that the  limitation  contained in this
Section 2(e) applies,  the  determination of whether this Warrant is exercisable
(in  relation  to  other  securities  owned  by the  Holder  together  with  any
Affiliates) and of which portion of this Warrant is exercisable  shall be in the
sole discretion of the Holder,  and the submission of a Notice of Exercise shall
be  deemed  to  be  the  Holder's  determination  of  whether  this  Warrant  is
exercisable (in relation to other  securities  owned by the Holder together with
any  Affiliates)  and of which portion of this Warrant is  exercisable,  in each
case subject to the Beneficial Ownership Limitation,  and the Company shall have
no  obligation  to verify or confirm  the  accuracy  of such  determination.  In
addition,  a determination as to any group status as contemplated above shall be
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
and regulations  promulgated  thereunder.  For purposes of this Section 2(e), in
determining the number of outstanding  shares of Common Stock, a Holder may rely
on the number of  outstanding  shares of Common  Stock as  reflected  in (A) the

                                       5
<PAGE>
Company's most recent  periodic or annual report filed with the  Commission,  as
the case may be, (B) a more recent public  announcement  by the Company or (C) a
more recent  written  notice by the Company or the Transfer  Agent setting forth
the  number of shares of Common  Stock  outstanding.  Upon the  written  or oral
request of a Holder,  the Company  shall within two Trading Days confirm  orally
and in  writing  to the  Holder  the  number  of shares  of  Common  Stock  then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of
the Company,  including this Warrant,  by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock was reported.
The "Beneficial  Ownership Limitation" shall be 4.99% of the number of shares of
the Common Stock outstanding  immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon
not less than 61 days' prior notice to the Company, may increase or decrease the
Beneficial Ownership  Limitation  provisions of this Section 2(e), provided that
the Beneficial  Ownership  Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock  outstanding  immediately  after giving effect to the
issuance of shares of Common  Stock upon  exercise of this  Warrant  held by the
Holder and the provisions of this Section 2(e) shall continue to apply. Any such
increase or decrease will not be effective  until the 61st day after such notice
is delivered to the Company. The provisions of this paragraph shall be construed
and implemented in a manner  otherwise than in strict  conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may
be defective or inconsistent with the intended Beneficial  Ownership  Limitation
herein  contained  or to make changes or  supplements  necessary or desirable to
properly  give effect to such  limitation.  The  limitations  contained  in this
paragraph shall apply to a successor holder of this Warrant.

Section 3. Certain Adjustments.

     a) Stock  Dividends  and  Splits.  If the  Company,  at any time while this
Warrant  is  outstanding:  (i)  pays a  stock  dividend  or  otherwise  makes  a
distribution or  distributions on shares of its Common Stock or any other equity
or equity equivalent  securities  payable in shares of Common Stock (which,  for
avoidance  of doubt,  shall not include any shares of Common Stock issued by the
Company upon exercise of this Warrant),  (ii) subdivides  outstanding  shares of
Common Stock into a larger number of shares, (iii) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a smaller number of
shares or (iv)  issues by  reclassification  of shares of the  Common  Stock any
shares of capital  stock of the Company,  then in each case the  Exercise  Price
shall be multiplied by a fraction of which the numerator  shall be the number of
shares  of  Common  Stock  (excluding   treasury  shares,  if  any)  outstanding
immediately  before such event and of which the denominator  shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
number of shares issuable upon exercise of this Warrant shall be proportionately
adjusted  such that the  aggregate  Exercise  Price of this Warrant shall remain
unchanged.  Any  adjustment  made  pursuant to this  Section  3(a) shall  become
effective   immediately   after  the  record  date  for  the   determination  of
stockholders  entitled to receive such dividend or distribution and shall become
effective  immediately  after the effective  date in the case of a  subdivision,
combination or re-classification.

                                       6
<PAGE>
     b) Subsequent  Equity Sales. If the Company or any Subsidiary  thereof,  as
applicable,  at any time while this Warrant is outstanding,  shall sell or grant
any option to  purchase,  or sell or grant any right to  reprice,  or  otherwise
dispose  of or issue  (or  announce  any  offer,  sale,  grant or any  option to
purchase or other disposition) any Common Stock or Common Stock Equivalents,  at
an effective  price per share less than the Exercise  Price then in effect (such
lower price, the "Base Share Price" and such issuances collectively, a "Dilutive
Issuance")  (it being  understood  and  agreed  that if the holder of the Common
Stock or Common  Stock  Equivalents  so issued  shall at any  time,  whether  by
operation of purchase price adjustments, reset provisions,  floating conversion,
exercise or exchange prices or otherwise, or due to warrants,  options or rights
per share  which are issued in  connection  with such  issuance,  be entitled to
receive shares of Common Stock at an effective price per share that is less than
the Exercise Price, such issuance shall be deemed to have occurred for less than
the  Exercise  Price on such date of the  Dilutive  Issuance  at such  effective
price),  then simultaneously with the consummation of each Dilutive Issuance the
Exercise  Price shall be reduced and only  reduced to equal the Base Share Price
and the number of Warrant Shares issuable hereunder shall be increased such that
the aggregate  Exercise Price payable  hereunder,  after taking into account the
decrease in the Exercise Price,  shall be equal to the aggregate  Exercise Price
prior to such  adjustment.  Such  adjustment  shall be made whenever such Common
Stock or Common Stock Equivalents are issued.  Notwithstanding the foregoing, no
adjustments  shall be made, paid or issued under this Section 3(b) in respect of
an Exempt Issuance.  The Company shall notify the Holder,  in writing,  no later
than the Trading Day  following  the  issuance or deemed  issuance of any Common
Stock or Common  Stock  Equivalents  subject to this  Section  3(b),  indicating
therein the  applicable  issuance  price,  or applicable  reset price,  exchange
price,  conversion  price and other pricing  terms (such  notice,  the "Dilutive
Issuance  Notice").  For purposes of  clarification,  whether or not the Company
provides a Dilutive  Issuance  Notice  pursuant to this Section  3(b),  upon the
occurrence of any Dilutive Issuance,  the Holder is entitled to receive a number
of Warrant  Shares  based upon the Base Share  Price  regardless  of whether the
Holder accurately  refers to the Base Share Price in the Notice of Exercise.  If
the Company  enters into a Variable Rate  Transaction,  despite the  prohibition
thereon in the Purchase  Agreement,  the Company  shall be deemed to have issued
Common Stock or Common Stock  Equivalents at the lowest  possible  conversion or
exercise price at which such securities may be converted or exercised

     c) [RESERVED]

     d) Pro Rata Distributions. During such time as this Warrant is outstanding,
if the Company shall declare or make any dividend or other  distribution  of its
assets (or rights to acquire its  assets) to holders of shares of Common  Stock,
by way of return of capital or otherwise  (including,  without  limitation,  any
distribution of cash, stock or other securities, property or options by way of a
dividend,  spin  off,  reclassification,   corporate  rearrangement,  scheme  of
arrangement or other similar transaction) (a "Distribution"),  at any time after

                                       7
<PAGE>
the  issuance of this  Warrant,  then,  in each such case,  the Holder  shall be
entitled to participate in such  Distribution to the same extent that the Holder
would have  participated  therein if the Holder had held the number of shares of
Common Stock  acquirable upon complete  exercise of this Warrant (without regard
to any  limitations  on  exercise  hereof,  including  without  limitation,  the
Beneficial Ownership  Limitation)  immediately before the date of which a record
is taken for such  Distribution,  or, if no such record is taken, the date as of
which the record  holders of shares of Common Stock are to be determined for the
participation in such Distribution  (provided,  however,  to the extent that the
Holder's  right to  participate  in any such  Distribution  would  result in the
Holder exceeding the Beneficial Ownership Limitation,  then the Holder shall not
be  entitled  to  participate  in such  Distribution  to such  extent (or in the
beneficial  ownership  of any  shares  of  Common  Stock  as a  result  of  such
Distribution to such extent) and the portion of such Distribution  shall be held
in abeyance for the benefit of the Holder until such time, if ever, as its right
thereto  would not  result in the  Holder  exceeding  the  Beneficial  Ownership
Limitation).

     e)  Fundamental  Transaction.  If,  at  any  time  while  this  Warrant  is
outstanding,  (i) the Company,  directly or  indirectly,  in one or more related
transactions  effects any merger or  consolidation  of the Company  with or into
another  Person,  (ii) the Company,  directly or  indirectly,  effects any sale,
lease, license, assignment,  transfer, conveyance or other disposition of all or
substantially  all of its  assets  in one or a series of  related  transactions,
(iii) any, direct or indirect,  purchase  offer,  tender offer or exchange offer
(whether  by the  Company or  another  Person) is  completed  pursuant  to which
holders of Common Stock are permitted to sell,  tender or exchange  their shares
for other  securities,  cash or property and has been accepted by the holders of
50% or more of the  outstanding  Common  Stock,  (iv) the  Company,  directly or
indirectly,  in one or more related transactions  effects any  reclassification,
reorganization or  recapitalization  of the Common Stock or any compulsory share
exchange  pursuant to which the Common Stock is  effectively  converted  into or
exchanged for other securities,  cash or property, or (v) the Company,  directly
or indirectly,  in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation,
a  reorganization,  recapitalization,  spin-off or scheme of  arrangement)  with
another  Person or group of Persons  whereby such other Person or group acquires
more than 50% of the  outstanding  shares of Common  Stock  (not  including  any
shares of Common Stock held by the other Person or other Persons making or party
to, or associated or affiliated  with the other Persons making or party to, such
stock  or  share  purchase  agreement  or other  business  combination)  (each a
"Fundamental Transaction"),  then, upon any subsequent exercise of this Warrant,
the Holder shall have the right to receive,  for each  Warrant  Share that would
have been  issuable upon such exercise  immediately  prior to the  occurrence of
such Fundamental Transaction, at the option of the Holder (without regard to any
limitation  in Section  2(e) on the  exercise  of this  Warrant),  the number of
shares of Common  Stock of the  successor  or  acquiring  corporation  or of the
Company, if it is the surviving  corporation,  and any additional  consideration
(the  "Alternate  Consideration")  receivable  as a result  of such  Fundamental

                                       8
<PAGE>
Transaction  by a holder of the number of shares of Common  Stock for which this
Warrant  is  exercisable  immediately  prior  to  such  Fundamental  Transaction
(without  regard to any  limitation  in  Section  2(e) on the  exercise  of this
Warrant).  For purposes of any such exercise,  the determination of the Exercise
Price shall be appropriately  adjusted to apply to such Alternate  Consideration
based on the amount of Alternate  Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise  Price among the  Alternate  Consideration  in a reasonable  manner
reflecting  the relative  value of any  different  components  of the  Alternate
Consideration.  If  holders  of Common  Stock  are  given  any  choice as to the
securities,  cash or property to be received in a Fundamental Transaction,  then
the Holder shall be given the same choice as to the Alternate  Consideration  it
receives  upon  any  exercise  of  this  Warrant   following  such   Fundamental
Transaction.  Notwithstanding  anything  to  the  contrary,  in the  event  of a
Fundamental  Transaction that is (1) an all cash transaction,  (2) a "Rule 13e-3
transaction"  as  defined  in  Rule  13e-3  under  the  Exchange  Act,  or (3) a
Fundamental  Transaction  involving  a person or entity not traded on a national
securities  exchange,  the Company or any  Successor  Entity (as defined  below)
shall, at the Holder's  option,  exercisable at any time  concurrently  with, or
within 30 days after, the consummation of the Fundamental Transaction,  purchase
this  Warrant from the Holder by paying to the Holder an amount of cash equal to
the Black Scholes Value of the remaining  unexercised portion of this Warrant on
the date of the  consummation of such  Fundamental  Transaction.  "Black Scholes
Value"  means the value of this  Warrant  based on the Black and Scholes  Option
Pricing Model obtained from the "OV" function on Bloomberg,  L.P.  ("Bloomberg")
determined  as  of  the  day  of  consummation  of  the  applicable  Fundamental
Transaction  for pricing  purposes and reflecting (A) a risk-free  interest rate
corresponding  to the U.S.  Treasury rate for a period equal to the time between
the date of the public  announcement of the applicable  Fundamental  Transaction
and the  Termination  Date, (B) an expected  volatility  equal to the greater of
100% and the 100 day  volatility  obtained from the HVT function on Bloomberg as
of  the  Trading  Day  immediately  following  the  public  announcement  of the
applicable Fundamental  Transaction,  (C) the underlying price per share used in
such calculation  shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash  consideration,  if any, being offered in
such  Fundamental  Transaction and (D) a remaining option time equal to the time
between  the  date of the  public  announcement  of the  applicable  Fundamental
Transaction  and the  Termination  Date.  The Company  shall cause any successor
entity in a  Fundamental  Transaction  in which the Company is not the  survivor
(the  "Successor  Entity")  to assume in writing all of the  obligations  of the
Company  under this Warrant and the other  Transaction  Documents in  accordance
with the provisions of this Section 3(e) pursuant to written  agreements in form
and substance  reasonably  satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at
the option of the Holder,  deliver to the Holder in exchange  for this Warrant a
security of the Successor Entity evidenced by a written instrument substantially
similar  in form  and  substance  to this  Warrant  which is  exercisable  for a
corresponding number of shares of capital stock of such Successor Entity (or its
parent  entity)  equivalent  to  the  shares  of  Common  Stock  acquirable  and
receivable  upon exercise of this Warrant  (without regard to any limitations on
the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise  price which  applies the  exercise  price  hereunder to such shares of
capital  stock (but taking  into  account  the  relative  value of the shares of
Common  Stock  pursuant to such  Fundamental  Transaction  and the value of such
shares of  capital  stock,  such  number of  shares  of  capital  stock and such
exercise  price being for the purpose of protecting  the economic  value of this

                                       9
<PAGE>
Warrant immediately prior to the consummation of such Fundamental  Transaction),
and which is reasonably  satisfactory in form and substance to the Holder.  Upon
the occurrence of any such Fundamental  Transaction,  the Successor Entity shall
succeed  to,  and be  substituted  for (so that  from and after the date of such
Fundamental   Transaction,   the  provisions  of  this  Warrant  and  the  other
Transaction  Documents  referring to the  "Company"  shall refer  instead to the
Successor  Entity),  and may  exercise  every right and power of the Company and
shall assume all of the  obligations  of the Company  under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had
been named as the Company herein.

     f) Calculations. All calculations under this Section 3 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be. For purposes
of this  Section 3, the number of shares of Common Stock deemed to be issued and
outstanding  as of a given  date  shall be the sum of the  number  of  shares of
Common Stock (excluding treasury shares, if any) issued and outstanding.

     g) Notice to Holder.

          i.  Adjustment  to Exercise  Price.  Whenever  the  Exercise  Price is
adjusted pursuant to any provision of this Section 3, the Company shall promptly
mail to the  Holder a  notice  setting  forth  the  Exercise  Price  after  such
adjustment  and any  resulting  adjustment  to the number of Warrant  Shares and
setting forth a brief statement of the facts requiring such adjustment.

          ii.  Notice to Allow  Exercise  by Holder.  If (A) the  Company  shall
declare a dividend (or any other  distribution  in whatever  form) on the Common
Stock, (B) the Company shall declare a special  nonrecurring cash dividend on or
a redemption of the Common Stock,  (C) the Company shall  authorize the granting
to all  holders of the Common  Stock  rights or  warrants  to  subscribe  for or
purchase  any shares of  capital  stock of any class or of any  rights,  (D) the
approval of any stockholders of the Company shall be required in connection with
any  reclassification  of the Common Stock, any consolidation or merger to which
the Company is a party, any sale or transfer of all or substantially  all of the
assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities,  cash or property,  or (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company,  then,  in each case,  the Company shall cause to be
mailed to the Holder at its last  address as it shall  appear  upon the  Warrant
Register  of the  Company,  at least 20  calendar  days prior to the  applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the  purpose of such  dividend,  distribution,
redemption,  rights or warrants,  or if a record is not to be taken, the date as
of which the  holders  of the  Common  Stock of record  to be  entitled  to such
dividend, distributions,  redemption, rights or warrants are to be determined or
(y) the  date on  which  such  reclassification,  consolidation,  merger,  sale,

                                       10
<PAGE>
transfer or share  exchange is expected to become  effective  or close,  and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such  reclassification,  consolidation,  merger,
sale, transfer or share exchange;  provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of
the corporate action required to be specified in such notice. To the extent that
any notice provided hereunder  constitutes,  or contains,  material,  non-public
information regarding the Company or any of the Subsidiaries,  the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Holder shall remain  entitled to exercise  this Warrant  during
the period  commencing on the date of such notice to the  effective  date of the
event  triggering  such notice  except as may  otherwise be expressly  set forth
herein.

Section 4. Transfer of Warrant.

     a)  Transferability.  Subject to compliance with any applicable  securities
laws and the  conditions  set forth in Section 4(d) hereof and to the provisions
of Section 4.1 of the Purchase Agreement,  this Warrant and all rights hereunder
(including,  without limitation,  any registration rights) are transferable,  in
whole or in part, upon surrender of this Warrant at the principal  office of the
Company or its  designated  agent,  together  with a written  assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or
its agent or attorney and funds  sufficient  to pay any transfer  taxes  payable
upon the making of such transfer.  Upon such  surrender  and, if required,  such
payment,  the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees,  as applicable,  and in the  denomination  or
denominations specified in such instrument of assignment, and shall issue to the
assignor a new Warrant  evidencing  the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned
in  accordance  herewith,  may be  exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

     b) New  Warrants.  This  Warrant  may be  divided  or  combined  with other
Warrants  upon  presentation  hereof at the  aforesaid  office  of the  Company,
together with a written notice  specifying the names and  denominations in which
new  Warrants  are to be issued,  signed by the Holder or its agent or attorney.
Subject  to  compliance  with  Section  4(a),  as to any  transfer  which may be
involved in such division or combination,  the Company shall execute and deliver
a new Warrant or Warrants in exchange  for the Warrant or Warrants to be divided
or combined in accordance with such notice.  All Warrants issued on transfers or
exchanges  shall be dated the  Exercise  Date and shall be  identical  with this
Warrant except as to the number of Warrant Shares issuable pursuant thereto.

     c) Warrant Register.  The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the  "Warrant  Register"),  in
the name of the record Holder hereof from time to time. The Company may deem and

                                       11
<PAGE>
treat the registered Holder of this Warrant as the absolute owner hereof for the
purpose of any exercise hereof or any  distribution  to the Holder,  and for all
other purposes, absent actual notice to the contrary.

     d) Transfer Restrictions.  If, at the time of the surrender of this Warrant
in connection  with any transfer of this  Warrant,  the transfer of this Warrant
shall  not be  either  (i)  registered  pursuant  to an  effective  registration
statement under the Securities Act and under applicable state securities or blue
sky  laws  or  (ii)  eligible  for  resale  without  volume  or   manner-of-sale
restrictions or current public  information  requirements  pursuant to Rule 144,
the Company may require,  as a condition  of allowing  such  transfer,  that the
Holder  or  transferee  of this  Warrant,  as the case may be,  comply  with the
provisions of Section 5.7 of the Purchase Agreement.

     e)  Representation  by the Holder.  The Holder,  by the acceptance  hereof,
represents and warrants that it is acquiring this Warrant and, upon any exercise
hereof, will acquire the Warrant Shares issuable upon such exercise, for its own
account and not with a view to or for  distributing  or  reselling  such Warrant
Shares or any part thereof in violation of the  Securities Act or any applicable
state  securities law, except pursuant to sales registered or exempted under the
Securities Act.

Section 5. Miscellaneous.

     a) No Rights as Stockholder  Until Exercise.  This Warrant does not entitle
the Holder to any voting  rights,  dividends or other rights as a stockholder of
the Company prior to the exercise hereof as set forth in Section 2(d)(i), except
as expressly set forth in Section 3.

     b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the  loss,  theft,  destruction  or  mutilation  of this  Warrant  or any  stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

     c) Saturdays,  Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the  expiration of any right  required or granted herein
shall not be a Business Day, then, such action may be taken or such right may be
exercised on the next succeeding Business Day.

     d) Authorized Shares.

     The Company  covenants that,  during the period the Warrant is outstanding,
it will  reserve  from its  authorized  and  unissued  Common Stock a sufficient
number of shares to provide  for the  issuance  of the  Warrant  Shares upon the
exercise  of any  purchase  rights  under  this  Warrant.  The  Company  further

                                       12
<PAGE>
covenants that its issuance of this Warrant shall  constitute  full authority to
its  officers  who are charged  with the duty of issuing the  necessary  Warrant
Shares upon the exercise of the purchase rights under this Warrant.  The Company
will take all such  reasonable  action as may be  necessary  to assure that such
Warrant  Shares  may be issued  as  provided  herein  without  violation  of any
applicable law or regulation,  or of any requirements of the Trading Market upon
which the Common  Stock may be listed.  The Company  covenants  that all Warrant
Shares which may be issued upon the exercise of the purchase rights  represented
by this Warrant will, upon exercise of the purchase  rights  represented by this
Warrant and payment for such  Warrant  Shares in  accordance  herewith,  be duly
authorized,  validly  issued,  fully  paid and  nonassessable  and free from all
taxes,  liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer  occurring  contemporaneously  with
such issue).

     Except  and to the  extent as waived or  consented  to by the  Holder,  the
Company shall not by any action,  including,  without  limitation,  amending its
certificate of incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities 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 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 Holder as set forth in this
Warrant against  impairment.  Without  limiting the generality of the foregoing,
the Company will (i) not increase the par value of any Warrant  Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (ii) take all such action as may be necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares  upon the  exercise of this  Warrant and (iii) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from  any  public  regulatory  body  having  jurisdiction  thereof,  as may  be,
necessary to enable the Company to perform its obligations under this Warrant.

     Before  taking any action which would result in an adjustment in the number
of Warrant  Shares for which this  Warrant  is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

     e)  Jurisdiction.  All questions  concerning  the  construction,  validity,
enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

     f) Restrictions.  The Holder  acknowledges that the Warrant Shares acquired
upon the exercise of this  Warrant,  if not  registered  and the Holder does not
utilize cashless  exercise,  will have restrictions upon resale imposed by state
and federal securities laws.

                                       13
<PAGE>
     g) Nonwaiver and Expenses.  No course of dealing or any delay or failure to
exercise any right  hereunder on the part of Holder shall operate as a waiver of
such right or  otherwise  prejudice  the  Holder's  rights,  powers or remedies,
notwithstanding  the fact that all rights hereunder terminate on the Termination
Date. If the Company  willfully and knowingly fails to comply with any provision
of this  Warrant,  which  results in any  material  damages to the  Holder,  the
Company shall pay to the Holder such amounts as shall be sufficient to cover any
costs and expenses  including,  but not limited to, reasonable  attorneys' fees,
including those of appellate  proceedings,  incurred by the Holder in collecting
any amounts due  pursuant  hereto or in otherwise  enforcing  any of its rights,
powers or remedies hereunder.

     h) Notices. Any notice,  request or other document required or permitted to
be given or  delivered  to the  Holder  by the  Company  shall be  delivered  in
accordance with the notice provisions of the Purchase Agreement.

     i)  Limitation  of Liability.  No provision  hereof,  in the absence of any
affirmative  action by the Holder to exercise  this Warrant to purchase  Warrant
Shares,  and no  enumeration  herein of the rights or  privileges of the Holder,
shall give rise to any  liability  of the Holder for the  purchase  price of any
Common  Stock or as a  stockholder  of the Company,  whether  such  liability is
asserted by the Company or by creditors of the Company.

     j)  Remedies.  The Holder,  in addition to being  entitled to exercise  all
rights  granted by law,  including  recovery  of  damages,  will be  entitled to
specific  performance of its rights under this Warrant.  The Company agrees that
monetary  damages  would not be adequate  compensation  for any loss incurred by
reason of a breach by it of the  provisions of this Warrant and hereby agrees to
waive and not to assert the defense in any action for specific  performance that
a remedy at law would be adequate.

     k) Successors  and Assigns.  Subject to applicable  securities  laws,  this
Warrant  and the rights and  obligations  evidenced  hereby  shall  inure to the
benefit of and be  binding  upon the  successors  and  permitted  assigns of the
Company and the  successors and permitted  assigns of Holder.  The provisions of
this  Warrant are intended to be for the benefit of any Holder from time to time
of this  Warrant  and shall be  enforceable  by the  Holder or holder of Warrant
Shares.

     l)  Amendment.  This  Warrant may be modified or amended or the  provisions
hereof waived with the written consent of the Company and the Holder.

     m) Severability. Wherever possible, each provision of this Warrant shall be
interpreted  in such manner as to be effective and valid under  applicable  law,
but if any  provision of this Warrant  shall be  prohibited  by or invalid under
applicable  law,  such  provision  shall be  ineffective  to the  extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

     n) Headings.  The headings used in this Warrant are for the  convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

                              ********************

                            (Signature Page Follows)

                                       14
<PAGE>
     IN WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized as of the date first above indicated.

                                         STEVIA CORP.

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

                                       15
<PAGE>
                               NOTICE OF EXERCISE

To: STEVIA CORP.

     (1) The undersigned  hereby elects to purchase  ________  Warrant Shares of
the Company  pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

         [ ] in lawful money of the United States; or

         [ ] [if  permitted the cancellation of such number of Warrant Shares as
          is necessary,  in accordance  with the formula set forth in subsection
          2(c), to exercise  this Warrant with respect to the maximum  number of
          Warrant Shares purchasable pursuant to the cashless exercise procedure
          set forth in subsection 2(c).

     (3)  Please issue said Warrant Shares in the name of the  undersigned or in
          such other name as is specified below:

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

The Warrant Shares shall be delivered to the following DWAC Account Number:

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

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

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

     (4)  Accredited  Investor.  The undersigned is an "accredited  investor" as
          defined in Regulation D promulgated  under the Securities Act of 1933,
          as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:
                         -------------------------------------------------------

Signature of Authorized Signatory of Investing Entity:

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

Name of Authorized Signatory:
                             ---------------------------------------------------

Title of Authorized Signatory:
                              --------------------------------------------------

Date:
      --------------------------------------------------------------------------

                                       16
<PAGE>
                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE  RECEIVED,  [____  all of or  [_______  shares  of the  foregoing
Warrant and all rights evidenced thereby are hereby assigned to

                                                               whose address is
---------------------------------------------------------------

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

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

                                                  Dated:               ,
                                                        --------------- --------

               Holder's Signature:
                                  ----------------------------------------------
               Holder's Address:
                                ------------------------------------------------

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

Signature Guaranteed:
                     -----------------------------------------------------------

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                       17

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