Document:

EXHIBIT 4.1

                        EL CAPITAN PRECIOUS METALS, INC.

                            2005 STOCK INCENTIVE PLAN

      1. Purpose. The purpose of the 2005 Stock Incentive Plan (the "Plan") of
El Capitan Precious Metals, Inc. (the "Company") is to increase stockholder
value and to advance the interests of the Company by furnishing a variety of
economic incentives ("Incentives") designed to attract, retain and motivate
employees, certain key consultants and directors of the Company. Incentives may
consist of opportunities to purchase or receive shares of Common Stock, $0.01
par value per share, of the Company ("Common Stock") on terms determined under
this Plan.

      2. Administration. The Plan shall be administered by the board of
directors of the Company (the "Board of Directors") or by a stock option or
compensation committee (the "Committee") of the Board of Directors. The
Committee shall consist of not less than two directors of the Company and shall
be appointed from time to time by the Board of Directors. Each member of the
Committee shall be (i) a "non-employee director" within the meaning of Rule
16b-3 of the Securities Exchange Act of 1934 (including the regulations
promulgated thereunder, the "1934 Act") (a "Non-Employee Director"), and (ii)
shall be an "outside director" within the meaning of Section 162(m) under the
Internal Revenue Code of 1986, as amended (the "Code") and the regulations
promulgated thereunder. The Committee shall have complete authority to award
Incentives under the Plan, to interpret the Plan, and to make any other
determination which it believes necessary and advisable for the proper
administration of the Plan. The Committee's decisions and matters relating to
the Plan shall be final and conclusive on the Company and its participants. If
at any time there is no stock option or compensation committee, the term
"Committee", as used in the Plan, shall refer to the Board of Directors.

      3. Eligible Participants. Officers of the Company, employees of the
Company or its subsidiaries, members of the Board of Directors, and consultants
or other independent contractors who provide services to the Company or its
subsidiaries shall be eligible to receive Incentives under the Plan when
designated by the Committee. Participants may be designated individually or by
groups or categories (for example, by pay grade) as the Committee deems
appropriate. Participation by officers of the Company or its subsidiaries and
any performance objectives relating to such officers must be approved by the
Committee. Participation by others and any performance objectives relating to
others may be approved by groups or categories (for example, by pay grade) and
authority to designate participants who are not officers and to set or modify
such targets may be delegated.

      4. Types of Incentives. Incentives under the Plan may be granted in any
one or a combination of the following forms: (a) incentive stock options and
non-statutory stock options (section 6); (b) stock appreciation rights ("SARs")
(section 7); (c) stock awards (section 8); (d) restricted stock (section 8); and
(e) performance shares (section 9).

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      5. Shares Subject to the Plan.

            5.1. Number of Shares. Subject to adjustment as provided in Section
      10.6, the number of shares of Common Stock which may be issued under the
      Plan shall not exceed 5,000,000 shares of Common Stock. Shares of Common
      Stock that are issued under the Plan or are subject to outstanding
      Incentives will be applied to reduce the maximum number of shares of
      Common Stock remaining available for issuance under the Plan.

            5.2. Cancellation. To the extent that cash in lieu of shares of
      Common Stock is delivered upon the exercise of an SAR pursuant to Section
      7.4, the Company shall be deemed, for purposes of applying the limitation
      on the number of shares, to have issued the greater of the number of
      shares of Common Stock which it was entitled to issue upon such exercise
      or on the exercise of any related option. In the event that a stock option
      or SAR granted hereunder expires or is terminated or canceled unexercised
      as to any shares of Common Stock, such shares may again be issued under
      the Plan either pursuant to stock options, SARs or otherwise. In the event
      that shares of Common Stock are issued as restricted stock or pursuant to
      a stock award and thereafter are forfeited or reacquired by the Company
      pursuant to rights reserved upon issuance thereof, such forfeited and
      reacquired shares may again be issued under the Plan, either as restricted
      stock, pursuant to stock awards or otherwise. The Committee may also
      determine to cancel, and agree to the cancellation of, stock options in
      order to make a participant eligible for the grant of a stock option at a
      lower price than the option to be canceled.

            5.3. Type of Common Stock. Common Stock issued under the Plan in
      connection with stock options, SARs, performance shares, restricted stock
      or stock awards, may be authorized and unissued shares or treasury stock,
      as designated by the Committee.

      6. Stock Options. A stock option is a right to purchase shares of Common
Stock from the Company. Each stock option granted by the Committee under this
Plan shall be subject to the following terms and conditions:

            6.1. Price. The option price per share shall be determined by the
      Committee, subject to adjustment under Section 10.6.

            6.2. Number. The number of shares of Common Stock subject to the
      option shall be determined by the Committee, subject to adjustment as
      provided in Section 10.6. The number of shares of Common Stock subject to
      a stock option shall be reduced in the same proportion that the holder
      thereof exercises a SAR if any SAR is granted in conjunction with or
      related to the stock option. Notwithstanding the foregoing, no person
      shall receive grants of Stock Options under the Plan that exceed 2,000,000
      shares during any one fiscal year of the Company.

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            6.3. Duration and Time for Exercise. Subject to earlier termination
      as provided in Section 10.4, the term of each stock option shall be
      determined by the Committee but shall not exceed ten years and one day
      from the date of grant. Each stock option shall become exercisable at such
      time or times during its term as shall be determined by the Committee at
      the time of grant. The Committee may accelerate the exercisability of any
      stock option. Subject to the foregoing and with the approval of the
      Committee, all or any part of the shares of Common Stock with respect to
      which the right to purchase has accrued may be purchased by the Company at
      the time of such accrual or at any time or times thereafter during the
      term of the option at such price and on such terms as the Company and the
      optionee shall mutually agree; provided, however, that any shares so
      repurchased shall not be available for re-issuance under the Plan.

            6.4. Manner of Exercise. A stock option may be exercised, in whole
      or in part, by giving written notice to the Company, specifying the number
      of shares of Common Stock to be purchased and accompanied by the full
      purchase price for such shares. The option price shall be payable (a) in
      United States dollars upon exercise of the option and may be paid by cash,
      uncertified or certified check or bank draft; (b) at the discretion of the
      Committee, by delivery of shares of Common Stock in payment of all or any
      part of the option price, which shares shall be valued for this purpose at
      the Fair Market Value on the date such option is exercised; or (c) at the
      discretion of the Committee, by instructing the Company to withhold from
      the shares of Common Stock issuable upon exercise of the stock option
      shares of Common Stock in payment of all or any part of the exercise price
      and/or any related withholding tax obligations, which shares shall be
      valued for this purpose at the Fair Market Value or in such other manner
      as may be authorized from time to time by the Committee. The shares of
      Common Stock delivered by the participant pursuant to Section 6.4(b) must
      have been held by the participant for a period of not less than six months
      prior to the exercise of the option, unless otherwise determined by the
      Committee. Prior to the issuance of shares of Common Stock upon the
      exercise of a stock option, a participant shall have no rights as a
      stockholder.

            6.5. Incentive Stock Options. Notwithstanding anything in the Plan
      to the contrary, the following additional provisions shall apply to the
      grant of stock options which are intended to qualify as Incentive Stock
      Options (as such term is defined in Section 422 of the Code):

                  (a) The aggregate Fair Market Value (determined as of the time
            the option is granted) of the shares of Common Stock with respect to
            which Incentive Stock Options are exercisable for the first time by
            any participant during any calendar year (under all of the Company's
            plans) shall not exceed $100,000. The determination will be made by
            taking incentive stock options into account in the order in which
            they were granted. If such excess only applies to a portion of an
            Incentive Stock Option, the Committee, in its discretion, will
            designate which shares will be treated as shares to be acquired upon
            exercise of an Incentive Stock Option.

                  (b) Any Incentive Stock Option certificate authorized under
            the Plan shall contain such other provisions as the Committee shall
            deem advisable, but shall in all events be consistent with and
            contain all provisions required in order to qualify the options as
            Incentive Stock Options.

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                  (c) All Incentive Stock Options must be granted within ten
            years from the earlier of the date on which this Plan was adopted by
            Board of Directors.

                  (d) Unless sooner exercised, all Incentive Stock Options shall
            expire no later than 10 years after the date of grant.

                  (e) The option price for Incentive Stock Options shall be not
            less than the Fair Market Value of the Common Stock subject to the
            option on the date of grant.

                  (f) If Incentive Stock Options are granted to any participant
            who, at the time such option is granted, would own (within the
            meaning of Section 422 of the Code) stock possessing more than 10%
            of the total combined voting power of all classes of stock of the
            employer corporation or of its parent or subsidiary corporation, (i)
            the option price for such Incentive Stock Options shall be not less
            than 110% of the Fair Market Value of the Common Stock subject to
            the option on the date of grant and (ii) such Incentive Stock
            Options shall expire no later than five years after the date of
            grant.

      7. Stock Appreciation Rights. An SAR is a right to receive, without
payment to the Company, a number of shares of Common Stock, cash or any
combination thereof, the amount of which is determined pursuant to the formula
set forth in Section 7.4. An SAR may be granted (a) with respect to any stock
option granted under this Plan, either concurrently with the grant of such stock
option or at such later time as determined by the Committee (as to all or any
portion of the shares of Common Stock subject to the stock option), or (b)
alone, without reference to any related stock option. Each SAR granted by the
Committee under this Plan shall be subject to the following terms and
conditions:

            7.1. Number. Each SAR granted to any participant shall relate to
      such number of shares of Common Stock as shall be determined by the
      Committee, subject to adjustment as provided in Section 10.6. In the case
      of an SAR granted with respect to a stock option, the number of shares of
      Common Stock to which the SAR pertains shall be reduced in the same
      proportion that the holder of the option exercises the related stock
      option.

            7.2. Duration. Subject to earlier termination as provided in Section
      10.4, the term of each SAR shall be determined by the Committee but shall
      not exceed ten years and one day from the date of grant. Unless otherwise
      provided by the Committee, each SAR shall become exercisable at such time
      or times, to such extent and upon such conditions as the stock option, if
      any, to which it relates is exercisable. The Committee may in its
      discretion accelerate the exercisability of any SAR.

            7.3. Exercise. An SAR may be exercised, in whole or in part, by
      giving written notice to the Company, specifying the number of SARs which
      the holder wishes to exercise. Upon receipt of such written notice, the
      Company shall, within 90 days thereafter, deliver to the exercising holder
      certificates for the shares of Common Stock or cash or both, as determined
      by the Committee, to which the holder is entitled pursuant to Section 7.4.

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            7.4. Payment. Subject to the right of the Committee to deliver cash
      in lieu of shares of Common Stock (which, as it pertains to officers and
      directors of the Company, shall comply with all requirements of the 1934
      Act), the number of shares of Common Stock which shall be issuable upon
      the exercise of an SAR shall be determined by dividing:

                  (a) the number of shares of Common Stock as to which the SAR
            is exercised multiplied by the amount of the appreciation in such
            shares (for this purpose, the "appreciation" shall be the amount by
            which the Fair Market Value of the shares of Common Stock subject to
            the SAR on the exercise date exceeds (1) in the case of an SAR
            related to a stock option, the purchase price of the shares of
            Common Stock under the stock option or (2) in the case of an SAR
            granted alone, without reference to a related stock option, an
            amount which shall be determined by the Committee at the time of
            grant, subject to adjustment under Section 10.6); by

                  (b) the Fair Market Value of a share of Common Stock on the
            exercise date.

            In lieu of issuing shares of Common Stock upon the exercise of a
      SAR, the Committee may elect to pay the holder of the SAR cash equal to
      the Fair Market Value on the exercise date of any or all of the shares
      which would otherwise be issuable. No fractional shares of Common Stock
      shall be issued upon the exercise of an SAR; instead, the holder of the
      SAR shall be entitled to receive a cash adjustment equal to the same
      fraction of the Fair Market Value of a share of Common Stock on the
      exercise date or to purchase the portion necessary to make a whole share
      at its Fair Market Value on the date of exercise.

      8. Stock Awards and Restricted Stock. A stock award consists of the
transfer by the Company to a participant of shares of Common Stock, without
other payment therefor, as additional compensation for services to the Company.
A share of restricted stock consists of shares of Common Stock which are sold or
transferred by the Company to a participant at a price determined by the
Committee (which price shall be at least equal to the minimum price required by
applicable law for the issuance of a share of Common Stock) and subject to
restrictions on their sale or other transfer by the participant. The transfer of
Common Stock pursuant to stock awards and the transfer and sale of restricted
stock shall be subject to the following terms and conditions:

            8.1. Number of Shares. The number of shares to be transferred or
      sold by the Company to a participant pursuant to a stock award or as
      restricted stock shall be determined by the Committee.

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            8.2. Sale Price. The Committee shall determine the price, if any, at
      which shares of restricted stock shall be sold to a participant, which may
      vary from time to time and among participants and which may be below the
      Fair Market Value of such shares of Common Stock at the date of sale.

            8.3. Restrictions. All shares of restricted stock transferred or
      sold hereunder shall be subject to such restrictions as the Committee may
      determine, including, without limitation any or all of the following:

                  (a) a prohibition against the sale, transfer, pledge or other
            encumbrance of the shares of restricted stock, such prohibition to
            lapse at such time or times as the Committee shall determine
            (whether in annual or more frequent installments, at the time of the
            death, disability or retirement of the holder of such shares, or
            otherwise);

                  (b) a requirement that the holder of shares of restricted
            stock forfeit, or (in the case of shares sold to a participant)
            resell back to the Company at his or her cost, all or a part of such
            shares in the event of termination of his or her employment or
            consulting engagement during any period in which such shares are
            subject to restrictions;

                  (c) such other conditions or restrictions as the Committee may
            deem advisable.

            8.4. Escrow. In order to enforce the restrictions imposed by the
      Committee pursuant to Section 8.3, the participant receiving restricted
      stock shall enter into an agreement with the Company setting forth the
      conditions of the grant. Shares of restricted stock shall be registered in
      the name of the participant and deposited, together with a stock power
      endorsed in blank, with the Company. Each such certificate shall bear a
      legend in substantially the following form:

            The transferability of this certificate and the shares of Common
            Stock represented by it are subject to the terms and conditions
            (including conditions of forfeiture) contained in the 2005 Stock
            Incentive Plan of El Capitan Precious Metals, Inc. (the "Company"),
            and an agreement entered into between the registered owner and the
            Company. A copy of the Plan and the agreement is on file in the
            office of the secretary of the Company.

            8.5. End of Restrictions. Subject to Section 10.5, at the end of any
      time period during which the shares of restricted stock are subject to
      forfeiture and restrictions on transfer, such shares will be delivered
      free of all restrictions to the participant or to the participant's legal
      representative, beneficiary or heir.

            8.6. Stockholder. Subject to the terms and conditions of the Plan,
      each participant receiving restricted stock shall have all the rights of a
      stockholder with respect to shares of stock during any period in which
      such shares are subject to forfeiture and restrictions on transfer,
      including without limitation, the right to vote such shares. Dividends
      paid in cash or property other than Common Stock with respect to shares of
      restricted stock shall be paid to the participant currently.

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      9. Performance Shares. A performance share consists of an award which
shall be paid in shares of Common Stock, as described below. The grant of
performance share shall be subject to such terms and conditions as the Committee
deems appropriate, including the following:

            9.1. Performance Objectives. Each performance share will be subject
      to performance objectives for the Company or one of its operating units to
      be achieved by the end of a specified period. The number of performance
      shares granted shall be determined by the Committee and may be subject to
      such terms and conditions, as the Committee shall determine. If the
      performance objectives are achieved, each participant will be paid in
      shares of Common Stock or cash. If such objectives are not met, each grant
      of performance shares may provide for lesser payments in accordance with
      formulas established in the award.

            9.2. Not Stockholder. The grant of performance shares to a
      participant shall not create any rights in such participant as a
      stockholder of the Company, until the payment of shares of Common Stock
      with respect to an award.

            9.3. No Adjustments. No adjustment shall be made in performance
      shares granted on account of cash dividends which may be paid or other
      rights which may be issued to the holders of Common Stock prior to the end
      of any period for which performance objectives were established.

            9.4. Expiration of Performance Share. If any participant's
      employment or consulting engagement with the Company is terminated for any
      reason other than normal retirement, death or disability prior to the
      achievement of the participant's stated performance objectives, all the
      participant's rights on the performance shares shall expire and terminate
      unless otherwise determined by the Committee. In the event of termination
      of employment or consulting by reason of death, disability, or normal
      retirement, the Committee, in its own discretion may determine what
      portions, if any, of the performance shares should be paid to the
      participant.

      10. General.

            10.1. Effective Date. The Plan will become effective upon its
      approval by the Board of Directors.

            10.2. Duration. The Plan shall remain in effect until all Incentives
      granted under the Plan have either been satisfied by the issuance of
      shares of Common Stock or the payment of cash or been terminated under the
      terms of the Plan and all restrictions imposed on shares of Common Stock
      in connection with their issuance under the Plan have lapsed. No
      Incentives may be granted under the Plan after the tenth anniversary of
      the date the Plan is approved by the Board of Directors.

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            10.3. Non-transferability of Incentives. No stock option, SAR,
      restricted stock or performance award may be transferred, pledged or
      assigned by the holder thereof (except, in the event of the holder's
      death, by will or the laws of descent and distribution to the limited
      extent provided in the Plan or the Incentive), or pursuant to a qualified
      domestic relations order as defined by the Code or Title I of the Employee
      Retirement Income Security Act, or the rules thereunder, and the Company
      shall not be required to recognize any attempted assignment of such rights
      by any participant. Notwithstanding the preceding sentence, stock options
      may be transferred by the holder thereof to Employee's spouse, children,
      grandchildren or parents (collectively, the "Family Members"), to trusts
      for the benefit of Family Members, to partnerships or limited liability
      companies in which Family Members are the only partners or shareholders,
      or to entities exempt from federal income taxation pursuant to Section
      501(c)(3) of the Internal Revenue Code of 1986, as amended. During a
      participant's lifetime, a stock option may be exercised only by him or
      her, by his or her guardian or legal representative or by the transferees
      permitted by the preceding sentence.

            10.4. Effect of Termination or Death. In the event that a
      participant ceases to be an employee of or consultant to the Company for
      any reason, including death or disability, any Incentives may be exercised
      or shall expire at such times as may be determined by the Committee.

            10.5. Additional Condition. Notwithstanding anything in this Plan to
      the contrary: (a) the Company may, if it shall determine it necessary or
      desirable for any reason, at the time of award of any Incentive or the
      issuance of any shares of Common Stock pursuant to any Incentive, require
      the recipient of the Incentive, as a condition to the receipt thereof or
      to the receipt of shares of Common Stock issued pursuant thereto, to
      deliver to the Company a written representation of present intention to
      acquire the Incentive or the shares of Common Stock issued pursuant
      thereto for his or her own account for investment and not for
      distribution; and (b) if at any time the Company further determines, in
      its sole discretion, that the listing, registration or qualification (or
      any updating of any such document) of any Incentive or the shares of
      Common Stock issuable pursuant thereto is necessary on any securities
      exchange or under any federal or state securities or blue sky law, or that
      the consent or approval of any governmental regulatory body is necessary
      or desirable as a condition of, or in connection with the award of any
      Incentive, the issuance of shares of Common Stock pursuant thereto, or the
      removal of any restrictions imposed on such shares, such Incentive shall
      not be awarded or such shares of Common Stock shall not be issued or such
      restrictions shall not be removed, as the case may be, in whole or in
      part, unless such listing, registration, qualification, consent or
      approval shall have been effected or obtained free of any conditions not
      acceptable to the Company.

            10.6. Adjustment. In the event of any recapitalization, stock
      dividend, stock split, combination of shares or other change in the Common
      Stock, the number of shares of Common Stock then subject to the Plan,
      including shares subject to restrictions, options or achievements of
      performance shares, shall be adjusted in proportion to the change in
      outstanding shares of Common Stock. In the event of any such adjustments,
      the purchase price of any option, the performance objectives of any
      Incentive, and the shares of Common Stock issuable pursuant to any
      Incentive shall be adjusted as and to the extent appropriate, in the
      discretion of the Committee, to provide participants with the same
      relative rights before and after such adjustment.

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            10.7. Incentive Plans and Agreements. Except in the case of stock
      awards, the terms of each Incentive shall be stated in a plan or agreement
      approved by the Committee. The Committee may also determine to enter into
      agreements with holders of options to reclassify or convert certain
      outstanding options, within the terms of the Plan, as Incentive Stock
      Options or as non-statutory stock options and in order to eliminate SARs
      with respect to all or part of such options and any other previously
      issued options.

            10.8. Withholding.

                  (a) The Company shall have the right to withhold from any
            payments made under the Plan or to collect as a condition of
            payment, any taxes required by law to be withheld. At any time when
            a participant is required to pay to the Company an amount required
            to be withheld under applicable income tax laws in connection with a
            distribution of Common Stock or upon exercise of an option or SAR,
            the participant may satisfy this obligation in whole or in part by
            electing (the "Election") to have the Company withhold from the
            distribution shares of Common Stock having a value up to the minimum
            amount of withholding taxes required to be collected on the
            transaction. The value of the shares to be withheld shall be based
            on the Fair Market Value of the Common Stock on the date that the
            amount of tax to be withheld shall be determined ("Tax Date").

                  (b) Each Election must be made prior to the Tax Date. The
            Committee may disapprove of any Election, may suspend or terminate
            the right to make Elections, or may provide with respect to any
            Incentive that the right to make Elections shall not apply to such
            Incentive. An Election is irrevocable.

            10.9. No Continued Employment, Engagement or Right to Corporate
      Assets. No participant under the Plan shall have any right, because of his
      or her participation, to continue in the employ of the Company for any
      period of time or to any right to continue his or her present or any other
      rate of compensation. Nothing contained in the Plan shall be construed as
      giving an employee, a consultant, such persons' beneficiaries or any other
      person any equity or interests of any kind in the assets of the Company or
      creating a trust of any kind or a fiduciary relationship of any kind
      between the Company and any such person.

            10.10. Deferral Permitted. Payment of cash or distribution of any
      shares of Common Stock to which a participant is entitled under any
      Incentive shall be made as provided in the Incentive. Payment may be
      deferred at the option of the participant if provided in the Incentive.

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            10.11. Amendment of the Plan. The Board may amend, suspend or
      discontinue the Plan at any time; provided, however, that no amendments to
      the Plan will be effective without approval of the shareholders of the
      Company if shareholder approval of the amendment is then required pursuant
      to Section 422 of the Code or the rules of any stock exchange or Nasdaq or
      similar regulatory body.

            10.12 Sale, Merger, Exchange or Liquidation. Unless otherwise
      provided in the agreement for an Incentive, in the event of an acquisition
      of the Company through the sale of substantially all of the Company's
      assets or through a merger, exchange, reorganization or liquidation of the
      Company or a similar event as determined by the Committee (collectively a
      "transaction"), the Committee shall be authorized, in its sole discretion,
      to take any and all action it deems equitable under the circumstances,
      including but not limited to any one or more of the following:

            (1) providing that the Plan and all Incentives shall terminate and
      the holders of (i) all outstanding vested options shall receive, in lieu
      of any shares of Common Stock they would be entitled to receive under such
      options, such stock, securities or assets, including cash, as would have
      been paid to such participants if their options had been exercised and
      such participant had received Common Stock immediately prior to such
      transaction (with appropriate adjustment for the exercise price, if any),
      (ii) performance shares and/or SARs that entitle the participant to
      receive Common Stock shall receive, in lieu of any shares of Common Stock
      each participant was entitled to receive as of the date of the transaction
      pursuant to the terms of such Incentive, if any, such stock, securities or
      assets, including cash, as would have been paid to such participant if
      such Common Stock had been issued to and held by the participant
      immediately prior to such transaction, and (iii) any Incentive under this
      Agreement which does not entitle the participant to receive Common Stock
      shall be equitably treated as determined by the Committee.

            (2) providing that participants holding outstanding vested Common
      Stock based Incentives shall receive, with respect to each share of Common
      Stock issuable pursuant to such Incentives as of the effective date of any
      such transaction, at the determination of the Committee, cash, securities
      or other property, or any combination thereof, in an amount equal to the
      excess, if any, of the Fair Market Value of such Common Stock on a date
      within ten days prior to the effective date of such transaction over the
      option price or other amount owed by a participant, if any, and that such
      Incentives shall be cancelled, including the cancellation without
      consideration of all options that have an exercise price below the per
      share value of the consideration received by the Company in the
      transaction.

            (3) providing that the Plan (or replacement plan) shall continue
      with respect to Incentives not cancelled or terminated as of the effective
      date of such transaction and provide to participants holding such
      Incentives the right to earn their respective Incentives on a
      substantially equivalent basis (taking into account the transaction and
      the number of shares or other equity issued by such successor entity) with
      respect to the equity of the entity succeeding the Company by reason of
      such transaction.

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            (4) providing that all unvested, unearned or restricted Incentives,
      including but not limited to restricted stock for which restrictions have
      not lapsed as of the effective date of such transaction, shall be void and
      deemed terminated, or, in the alternative, for the acceleration or waiver
      of any vesting, earning or restrictions on any Incentive.

            The Board may restrict the rights of participants or the
      applicability of this Section 10.12 to the extent necessary to comply with
      Section 16(b) of the Securities Exchange Act of 1934, the Internal Revenue
      Code or any other applicable law or regulation. The grant of an Incentive
      award pursuant to the Plan shall not limit in any way the right or power
      of the Company to make adjustments, reclassifications, reorganizations or
      changes of its capital or business structure or to merge, exchange or
      consolidate or to dissolve, liquidate, sell or transfer all or any part of
      its business or assets.

            10.13. Definition of Fair Market Value. For purposes of this Plan,
      the "Fair Market Value" of a share of Common Stock at a specified date
      shall, unless otherwise expressly provided in this Plan, be the amount
      which the Committee or the Board of Directors determines in good faith to
      be 100% of the fair market value of such a share as of the date in
      question; provided, however, that notwithstanding the foregoing, if such
      shares are listed on a U.S. securities exchange or are quoted on the
      Nasdaq National Market or Nasdaq Small-Cap Market ("Nasdaq"), then Fair
      Market Value shall be determined by reference to the last sale price of a
      share of Common Stock on such U.S. securities exchange or Nasdaq on the
      applicable date. If such U.S. securities exchange or Nasdaq is closed for
      trading on such date, or if the Common Stock does not trade on such date,
      then the last sale price used shall be the one on the date the Common
      Stock last traded on such U.S. securities exchange or Nasdaq.

                                       11Exhibit 10.15

THIS WARRANT  CERTIFICATE AND THE UNDERLYING  SHARES OF COMMON STOCK REPRESENTED
BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED,  AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION  STATEMENT  UNDER SAID ACT OR  PURSUANT TO AN  AVAILABLE  EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT.

Series A Warrant No. _________                                 ___________, 2005

                              PHARMAFRONTIERS CORP.

                          COMMON STOCK PURCHASE WARRANT

          This  Common  Stock   Purchase   Warrant  (the   "Warrant")   entitles
________________________  (including any  successors or assigns,  the "Holder"),
for value received, to purchase from PHARMAFRONTIERS  CORP., a Texas corporation
(the  "Company"),  at any time and from time to time,  subject  to the terms and
conditions  set forth herein,  during the period  starting from 5:00 a.m. on the
date  hereof to 5:00 p.m.,  New York City  time,  on the  "Expiration  Date" (as
defined in Section 1 below) immediately  following which time this Warrant shall
expire and become void,  all or any portion of the "Warrant  Shares" (as defined
in Section 1 below) at the  "Exercise  Price"  (as  defined in Section 1 below).
This Warrant is issued subject to the following terms and conditions:

          1. Definitions As used in this Warrant, the following terms shall have
the  respective  meanings  set  forth in the  Registration  Statement,  below or
elsewhere in this Warrant as referred to below:

          "Additional Shares" shall have the meaning given to it in Section 3.6.

          "Affiliate"  means,  with  respect  to any  Person,  any other  Person
directly or indirectly  controlling or controlled by or under direct or indirect
common  control with such  specified  Person.  For the purposes of this Warrant,
"control,"  when used with  respect to any  specified  Person means the power to
direct or cause the  direction  of the  management  and policies of such Person,
directly or indirectly,  whether through the ownership of voting securities,  by
contract  or  otherwise;  and the  terms  "controlling"  and  "controlled"  have
meanings correlative to the foregoing.

          "Black  Scholes  Pricing Model" means the value  determined  using the
Black Scholes pricing model and employing an interest rate equal to 30 day LIBOR
on the day prior to valuation  and a volatility  equal to the  volatility of the
Common  Stock  for  the 30  Trading  Days  prior  to the  date of  valuation  as
reasonably  determined by the Board of Directors;  provided that if the Majority
Holders  disagree  with such  volatility,  the Company and Largest  Holder shall
jointly  select an appraiser who is experienced in such matters and the decision
of such appraiser shall be final and conclusive,  and the cost of such appraiser
shall be borne by the Company.  "Majority  Holders" means holders of outstanding
Warrants  representing  the right to  purchase  a majority  of the Common  Stock
issuable upon exercise of all outstanding Warrants.  "Largest Holder" means that
holder,  who is a member of the objecting  Majority Holders,  and holds Warrants
that  entitle  it to acquire  more  shares  than any other  holder who is in the
objecting Majority Holders.

                                        1
<PAGE>

          "Business day" (whether such term is capitalized or not) means any day
except Saturday,  Sunday and any day which shall be a federal legal holiday or a
day on which banking institutions in the State of New York or the State of Texas
are authorized or required by law or other governmental action to close.

          "Closing  Date" shall have the meaning  given to it in the  Securities
Purchase Agreement.

          "Common Stock" means the common stock,  $0.05 par value per share,  of
the Company (including any securities into which or for which such shares may be
exchanged for, or converted into,  pursuant to any stock dividend,  stock split,
stock combination, recapitalization,  reclassification,  reorganization or other
similar event occurring prior to the Closing Date).

          "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, rights,
options,  warrants or other  instrument that is at any time  convertible into or
exchangeable  for, or otherwise  entitles the holder thereof to receive,  Common
Stock.

          "Company" has the meaning set forth in the preamble hereof.

          "Exercise  Price" means initially the Initial  Exercise Price, as such
amount may be adjusted from time to time pursuant to Section 3 hereof.

          "Expiration  Date" means the later of (i) January __, 2006 or (ii) the
date five months after a  registration  statement  for the resale of the Warrant
Shares is declared effective,  provided, however, that the Expiration Date shall
be  extended  for a  number  of  additional  days  equal to the  number  of days
following  the SEC  Effective  Date that sales  cannot be made  pursuant  to the
Registration Statement for any reason (including without limitation by reason of
a stop order, or the Company's failure to update the Registration Statement).

          "Floor  Exercise  Price"  means $1.00 per share  provided  such amount
shall be proportionately  reduced for any stock split, stock dividend or similar
corporate  action and  proportionately  increased for any stock  combination  or
similar corporate action.

          "Holder" has the meaning set forth in the preamble of hereof.

          "Initial Exercise Price" means $2.00 per share of Common Stock.

          "Nasdaq" means the Nasdaq Stock Market.

          "OTCBB" means the OTC Bulletin Board.

                                       2
<PAGE>

          "Person"  (whether or not  capitalized)  means an individual,  entity,
partnership,  limited liability company, corporation,  association, trust, joint
venture,   unincorporated   organization,   and  any  government,   governmental
department or agency or political subdivision thereof.

          "Registration Rights Agreement" means that certain Registration Rights
Agreement,  dated as of the date hereof, as it may be amended from time to time,
by and among the Company and the  individuals  named  therein (the  "Investors")
including the initial Holder.

          "SEC" means the Securities and Exchange Commission.

          "Second  Offering" shall have the meaning provided to such term in the
Securities Purchase Agreement.

          "Securities   Purchase   Agreement"  means  the  Securities   Purchase
Agreement  dated as of the date hereof,  as it may be amended from time to time,
by and among the Company and the individuals named therein including the initial
Holder.

          "Series A Warrants," "Series B Warrants," and "Series C Warrants" mean
all of those warrants issued by the Company under such titles  concurrently with
this Series A Warrant.

          "Trading  Day"  means a day on which the  Common  Stock is traded on a
Trading Market.

          "Trading Market" means the following markets or exchanges on which the
Common  Stock is listed or quoted for trading on the date in  question:  the OTC
Bulletin Board, the Nasdaq SmallCap Market, the American Stock Exchange, the New
York Stock Exchange or the Nasdaq National Market.

          "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  Financial  L.P.
(based on a Trading Day from 9:30 a.m.  Eastern Time to 4:02 p.m. Eastern Time);
(b) if the Common Stock is not then listed or quoted on a Trading  Market and if
prices for the  Common  Stock are then  quoted on the OTC  Bulletin  Board,  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 on the OTC  Bulletin  Board and if prices for the Common  Stock
are then reported in the "Pink Sheets"  published by the Pink Sheets,  LLC (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 (c) 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  and
reasonably acceptable to the Company.

          "Warrants" means the Series A Warrants, Series B Warrants and Series C
Warrants.

          "Warrant Shares" means ____ [125% of the number of shares purchased by
the Investor  pursuant to Section 1.1(a) of the Securities  Purchase  Agreement]
shares of Common  Stock,  subject to  adjustment  in  accordance  with Section 3
below.

                                       3
<PAGE>

          2. Exercise of Warrant.

               2.1 Method of Exercise;  Payment. Subject to all of the terms and
          conditions hereof this Warrant may be exercised,  in whole or in part,
          with respect to any or all of the Warrant Shares, at any time and from
          time to  time,  ending  at 5:00  p.m.,  New  York  City  Time,  on the
          Expiration  Date,  by  surrender of this Warrant to the Company at its
          principal office,  accompanied by a subscription  substantially in the
          form attached  hereto,  executed by the Holder and  accompanied by (a)
          wire  transfer of  immediately  available  funds or (b)  certified  or
          official bank check payable to the order of the Company,  in each case
          in the amount obtained by multiplying (i) the number of Warrant Shares
          for  which the  Warrant  is being  exercised,  as  designated  in such
          subscription,  by (ii) the Exercise Price. Thereupon, the Holder shall
          be entitled to receive the number of duly authorized,  validly issued,
          fully paid and nonassessable Warrant Shares determined as provided for
          herein.  Notwithstanding  anything  contained  herein to the contrary,
          this  Warrant may only be  exercised  by an  "accredited  investor" as
          defined in Rule 501(a) of  Regulation  D under the  Securities  Act of
          1933.

               2.2 Exercise Limitations.

               Holder's  Restrictions.  The  Holder  shall not have the right to
          exercise  any  portion of this  Warrant,  pursuant  to Section  2.2 or
          otherwise,  to the extent that after  giving  effect to such  issuance
          after exercise, the Holder (together with the Holder's affiliates), as
          set forth on the applicable Notice of Exercise, would beneficially own
          in  excess  of 4.99% of the  number  of  shares  of the  Common  Stock
          outstanding  immediately  after giving  effect to such  issuance.  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 the  determination of such sentence
          is being made,  but shall exclude the number of shares of Common Stock
          which  would  be  issuable   upon  (A)  exercise  of  the   remaining,
          nonexercised  portion of this Warrant beneficially owned by the Holder
          or any  of its  affiliates  and  (B)  exercise  or  conversion  of the
          unexercised  or  nonconverted  portion of any other  securities of the
          Company (including, without limitation, any other Warrants) 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(d),   beneficial   ownership  shall  be
          calculated  in  accordance  with Section 13(d) of the Exchange Act, it
          being  acknowledged by Holder that the Company is not  representing to
          Holder that such  calculation  is in compliance  with Section 13(d) of
          the Exchange Act and Holder is solely  responsible  for any  schedules
          required to be filed in accordance therewith.

               To the extent that the  limitation  contained in this Section 2.2
          applies,  the determination of whether this Warrant is exercisable (in
          relation  to  other  securities  owned by the  Holder)  and of which a
          portion of this Warrant is exercisable shall be in the sole discretion
          of such Holder,  and the  submission of a Notice of Exercise  shall be
          deemed to be such  Holder's  determination  of whether this Warrant is
          exercisable (in relation to other securities owned by such Holder) and
          of which portion of this Warrant is exercisable,  in each case subject
          to such aggregate percentage limitation, and the Company shall have no

                                       4
<PAGE>

          obligation  to verify or confirm the  accuracy of such  determination.
          For  purposes  of this  Section  2.2,  in  determining  the  number of
          outstanding  shares of Common Stock, the Holder may rely on the number
          of  outstanding  shares  of  Common  Stock  as  reflected  in (x)  the
          Company's most recent Form 10-QSB or Form 10-KSB,  as the case may be,
          (y) a more recent public  announcement by the Company or (z) any other
          notice by the Company or the  Company's  Transfer  Agent setting forth
          the number of shares of Common Stock outstanding.  Upon the written or
          oral request of the 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
          provisions  of this  Section 2.2 may be waived by the  Holder,  at the
          election  of the Holder,  upon not less than 61 days' prior  notice to
          the Company,  and the provisions of this Section 2.2 shall continue to
          apply until such 61st day (or such later date,  as  determined  by the
          Holder, as may be specified in such notice of waiver).

               2.3 Delivery of Stock Certificates on Exercise.  Certificates for
          shares purchased  hereunder shall be transmitted by the transfer agent
          of the Company to the Holder by crediting  the account of the Holder's
          prime broker with the  Depository  Trust  Company  through its Deposit
          Withdrawal  Agent  Commission  ("DWAC")  system  if the  Company  is a
          participant  in such  system (and so long as the legend may be removed
          in  accordance  with  Section  5.2 of  the  Purchase  Agreement),  and
          otherwise by physical  delivery to the address specified by the Holder
          in the Notice of Exercise  within three Trading Days from the delivery
          to the  Company  of the Notice of  Exercise  Form,  surrender  of this
          Warrant and payment of the aggregate Exercise Price as set forth above
          ("Warrant Share Delivery Date").  This Warrant shall be deemed to have
          been  exercised  on the date the  Exercise  Price is  received  by the
          Company.  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 by payment to
          the Company of the Exercise Price.

               2.4 Shares To Be Fully Paid and Nonassessable. All Warrant Shares
          issued upon the  exercise of this  Warrant  shall be duly  authorized,
          validly  issued,  fully  paid and  nonassessable,  free of all  liens,
          taxes,  charges and other  encumbrances or restrictions on sale (other
          than those set forth herein).

               2.5 Issuance of New Warrants;  Company  Acknowledgment.  Upon any
          partial exercise of this Warrant,  the Company,  at its expense,  will
          forthwith and, in any event within three (3) business days,  issue and
          deliver  to the  Holder  a new  warrant  or  warrants  of like  tenor,
          registered in the name of the Holder,  exercisable,  in the aggregate,
          for the balance of the Warrant Shares. Moreover, the Company shall, at
          the time of any  exercise  of this  Warrant,  upon the  request of the
          Holder,  acknowledge in writing its continuing obligation to afford to
          the  Holder  any  rights  to which the  Holder  shall  continue  to be
          entitled after such exercise in accordance with the provisions of this
          Warrant; provided,  however, that if the Holder shall fail to make any
          such request,  such failure shall not affect the continuing obligation
          of the Company to afford to the Holder any such rights.

                                       5
<PAGE>

               2.6  Payment of Taxes and  Expenses.  The  Company  shall pay any
          recording,  filing,  stamp or  similar  tax  which may be  payable  in
          respect  of  any  transfer  involved  in  the  issuance  of,  and  the
          preparation and delivery of certificates (if applicable) representing,
          (i) any Warrant Shares  purchased upon exercise of this Warrant and/or
          (ii) new or  replacement  warrants in the Holder's name or the name of
          any transferee of all or any portion of this Warrant.

               2.7 Rescission Rights. If the Company fails to cause its transfer
          agent  to  transmit  to  the  Holder  a  certificate  or  certificates
          representing  the Warrant  Shares  pursuant  to this  Section 2 by the
          Warrant Share  Delivery  Date,  then the Holder will have the right to
          rescind such exercise.

               2.8   Compensation  for  Buy-In  on  Failure  to  Timely  Deliver
          Certificates Upon Exercise.  In addition to any other rights available
          to the Holder,  if the Company  fails to cause its  transfer  agent to
          transmit to the Holder a certificate or certificates  representing the
          Warrant Shares  pursuant to an exercise on or before 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) shares
          of Common Stock to 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 (1) pay in cash to the
          Holder  the  amount 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 (A)
          the number of Warrant  Shares that the Company was required to deliver
          to the Holder in  connection  with the exercise at issue times (B) the
          price at which the sell order giving rise to such purchase  obligation
          was executed,  and (2) 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  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
          (1) 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,  together  with  applicable  confirmations  and
          other  evidence  reasonably  requested by the Company.  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  certificates  representing
          shares of Common  Stock  upon  exercise  of the  Warrant  as  required
          pursuant to the terms hereof.

               2.9 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  Holder  would
          otherwise  be  entitled to purchase  upon such  exercise,  the Company
          shall pay a cash  adjustment  in respect of such final  fraction in an
          amount equal to such fraction multiplied by the VWAP.

                                       6
<PAGE>

               2.10  Conditions.  Notwithstanding  any other  provision  of this
          Warrant,  if the  exercise of all or any portion of this Warrant is to
          be made in connection with a registered public offering, a sale of the
          Company or any other  transaction or event,  such exercise may, at the
          election of the  Holder,  be  conditioned  upon  consummation  of such
          transaction  or event in which case such exercise  shall not be deemed
          effective until the consummation of such transaction or event.

          3. Adjustment of Exercise Price and Warrant Shares. The Exercise Price
and the number of Warrant  Shares  shall be subject to  adjustment  from time to
time upon the happening of certain events as described in this Section 3.

               3.1  Subdivision or Combination of Stock.  If at any time or from
          time to time after the date hereof,  the Company  shall  subdivide (by
          way of stock  dividend,  stock  split or  otherwise)  its  outstanding
          shares of Common Stock, the Exercise Price in effect immediately prior
          to such subdivision shall be reduced proportionately and the number of
          Warrant  Shares  (calculated  to the  nearest  whole  share)  shall be
          increased   proportionately,   and   conversely,   in  the  event  the
          outstanding shares of Common Stock shall be combined (whether by stock
          combination,  reverse stock split or otherwise)  into a smaller number
          of shares,  the  Exercise  Price in effect  immediately  prior to such
          combination  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.  The Exercise Price and the number of Warrant Shares,  as so
          adjusted,  shall become effective immediately after the effective date
          of such subdivision, combination or reclassification and readjusted in
          the same manner upon the happening of any  successive  event or events
          described in this Section 3.1.

               3.2 Adjustments

                    (a) Adjustment for Stock Dividends. If at any time after the
               date  hereof,  the Company  shall  declare a dividend or make any
               other  distribution  upon  any  class or  series  of stock of the
               Company payable in shares of Common Stock,  the Exercise Price in
               effect  immediately  prior to such  declaration  or  distribution
               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.  Any  adjustment  made pursuant to this Section  3.2(a)
               shall become effective  immediately after the record date for the
               determination  of stockholders  entitled to receive such dividend
               or  distribution  be  readjusted  in the  same  manner  upon  the
               happening  of any  successive  event or events  described in this
               Section 3.2.

                                       7
<PAGE>

                    (b) Adjustments for Other  Dividends and  Distributions.  In
               the event the  Company at any time or from time to time after the
               date  hereof  shall make or issue,  or fix a record  date for the
               determination  of holders of Common Stock entitled to receive,  a
               dividend  or other  distribution  payable  in  securities  of the
               Company  (other than shares of Common  Stock) or in cash or other
               property,  then and in each such event provision shall be made so
               that the Holder shall receive upon exercise  hereof,  in addition
               to the number of shares of Common Stock issuable  hereunder,  the
               kind and amount of  securities  of the  Company  and/or  cash and
               other  property  which the  Holder  would have been  entitled  to
               receive had this Warrant been  exercised into Common Stock on the
               date of such  event and had the  Holder  thereafter,  during  the
               period from the date of such event to and  including the exercise
               date, retained any such securities receivable, giving application
               to all  adjustments  called for  during  such  period  under this
               Section 3 with respect to the rights of the Holder.

               3.3  Adjustments  for  Reclassifications.  If  the  Common  Stock
          issuable upon the conversion of this Warrant shall be changed into the
          same or a  different  number of shares of any  class(es)  or series of
          stock   and/or   the   right   to   receive   property,   whether   by
          reclassification or otherwise (other than an adjustment under Sections
          3.1 and 3.2 or a merger, consolidation, or sale of assets provided for
          under  Section  3.4),  then and in each such event,  the Holder hereof
          shall have the right thereafter to convert each Warrant Share into the
          kind and amount of shares of stock and other  securities  and property
          receivable upon such  reclassification,  or other change by holders of
          the number of shares of Common  Stock into which such  Warrant  Shares
          would have been convertible immediately prior to such reclassification
          or change, all subject to successive  adjustments thereafter from time
          to time pursuant to and in  accordance  with,  the  provisions of this
          Section 3.

               3.4 Fundamental  Transaction.  If, at any time while this Warrant
          is outstanding, (A) the Company effects any merger or consolidation of
          the Company with or into another  Person,  (B) the Company effects any
          sale of all or  substantially  all of its assets in one or a series of
          related transactions,  (C) any tender offer or exchange offer (whether
          by the  Company or  another  Person) is  completed  pursuant  to which
          holders of Common  Stock are  permitted  to tender or  exchange  their
          shares for other  securities,  cash or  property,  or (D) the  Company
          effects any  reclassification  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 (in
          any such case, 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,  (a) upon  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 upon or as a result of such reorganization,
          reclassification,  merger, consolidation or disposition of assets by a

                                       8
<PAGE>

          Holder of the number of shares of Common  Stock for which this Warrant
          is exercisable  immediately  prior to such event or (b) if the Company
          is  acquired  in an all cash  transaction,  cash equal to the value of
          this Warrant  determined  using the Block Scholes  Pricing Model as of
          the date of the  acquisition.  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.  To the extent
          necessary to effectuate the foregoing provisions, any successor to the
          Company or  surviving  entity in such  Fundamental  Transaction  shall
          issue  to the  Holder a new  warrant  consistent  with  the  foregoing
          provisions  and evidencing the Holder's right to exercise such warrant
          into Alternate  Consideration.  The terms of any agreement pursuant to
          which a  Fundamental  Transaction  is  effected  shall  include  terms
          requiring  any such  successor or surviving  entity to comply with the
          provisions  of this Section 3.4 and insuring that this Warrant (or any
          such  replacement  security)  will  be  similarly  adjusted  upon  any
          subsequent transaction analogous to a Fundamental Transaction.

               3.5   Continuation   of   Terms.    Upon   any    reorganization,
          consolidation,  merger or transfer (and any dissolution  following any
          such  transfer)  referred  to in this  Section 3, this  Warrant  shall
          continue  in full  force  and  effect  and the terms  hereof  shall be
          applicable  to the  shares of Common  Stock and other  securities  and
          property  receivable  upon the  exercise  of this  Warrant  after  the
          consummation of such  reorganization,  consolidation  or merger or the
          effective date of dissolution following any such transfer, as the case
          may be, and shall be binding  upon the issuer of any such Common Stock
          or other securities,  including, in the case of any such transfer, the
          Person acquiring all or substantially  all of the properties or assets
          or more than 50% of the voting  capital stock of the Company  (whether
          issued  and  outstanding,   newly  issued  or  from  treasury  or  any
          combination thereof),  whether or not such Person shall have expressly
          assumed the terms of this Warrant.

               3.6 Antidilution Adjustment.

                    (a) If the Company or any subsidiary thereof, as applicable,
               at any time this  Warrant is  outstanding  shall issue  shares of
               Common Stock or Common Stock Equivalents  entitling any Person to
               acquire shares of Common Stock, at a price per share (determined,
               reduced and adjusted in accordance with Section  3.6(b)(v) below)
               less than the then current  Exercise  Price (if the holder of the
               Common  Stock or Common Stock  Equivalent  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  issued  in
               connection  with such issuance,  be entitled to receive shares of
               Common  Stock at a price  less  than  the  Exercise  Price,  such
               issuance  shall be  deemed  to have  occurred  for less  than the
               Exercise  Price),  then,  the Exercise  Price shall be reduced to
               equal such lower price.  Such  adjustment  shall be made whenever
               such Common Stock or Common  Stock  Equivalents  are issued.  The
               Company  shall  notify the Holder in  writing,  no later than the
               Trading Day  following the issuance of any Common Stock or Common
               Stock Equivalent subject to this section,  indicating therein the
               applicable issuance price, or of applicable reset price, exchange
               price, conversion price and other pricing terms.

                                       9
<PAGE>

                    Notwithstanding the foregoing,  the Exercise Price shall not
               be reduced  below the Floor  Exercise  Price by operation of this
               Section 3.6.

                    (b) For  purposes  of this  subsection  3.6,  the  following
               subsections shall also be applicable:

                         (i) Issuance of Rights or Options.  In case at any time
                    the Company  shall in any manner grant  (directly and not by
                    assumption in a merger or  otherwise)  any warrants or other
                    rights to subscribe  for or to purchase,  or any options for
                    the  purchase  of,  Common  Stock or any  stock or  security
                    convertible  into or  exchangeable  for Common  Stock  (such
                    warrants,  rights or options being called "Options" and such
                    convertible or exchangeable stock or securities being called
                    "Convertible Securities") whether or not such Options or the
                    right to convert or exchange any such Convertible Securities
                    are  immediately  exercisable,  and the  price per share for
                    which  Common  Stock is issuable  upon the  exercise of such
                    Options  or  upon  the   conversion   or  exchange  of  such
                    Convertible  Securities  (determined by dividing (i) the sum
                    (which sum shall constitute the applicable consideration) of
                    (x) the total amount,  if any, received or receivable by the
                    Company as  consideration  for the granting of such Options,
                    plus (y) the aggregate  amount of  additional  consideration
                    payable  to the  Company  upon  the  exercise  of  all  such
                    Options,  plus (z), in the case of such Options which relate
                    to   Convertible   Securities,   the  aggregate   amount  of
                    additional consideration,  if any, payable upon the issue or
                    sale of such Convertible  Securities and upon the conversion
                    or exchange  thereof,  by (ii) the total  maximum  number of
                    shares of Common  Stock  issuable  upon the exercise of such
                    Options  or upon  the  conversion  or  exchange  of all such
                    Convertible  Securities  issuable  upon the exercise of such
                    Options)  shall be less  than the  Exercise  Price in effect
                    immediately  prior  to the  time  of the  granting  of  such
                    Options,  then the total  number  of shares of Common  Stock
                    issuable   upon  the   exercise  of  such  Options  or  upon
                    conversion   or  exchange  of  the  total   amount  of  such
                    Convertible  Securities  issuable  upon the exercise of such
                    Options  shall be deemed to have been  issued for such price
                    per share as of the date of granting of such  Options or the
                    issuance of such Convertible Securities and thereafter shall
                    be deemed to be  outstanding  for purposes of adjusting  the
                    Exercise Price.  Except as otherwise  provided in subsection
                    3.6(b)(iii),  no adjustment  of the Exercise  Price shall be
                    made upon the actual  issue of such Common  Stock or of such
                    Convertible Securities upon exercise of such Options or upon
                    the actual  issue of such Common  Stock upon  conversion  or
                    exchange of such Convertible Securities.

                                       10
<PAGE>

                         (ii) Issuance of  Convertible  Securities.  In case the
                    Company  shall  in any  manner  issue  (directly  and not by
                    assumption in a merger or otherwise) or sell any Convertible
                    Securities, whether or not the rights to exchange or convert
                    any such Convertible Securities are immediately exercisable,
                    and the price per share for which  Common  Stock is issuable
                    upon such conversion or exchange (determined by dividing (i)
                    the  sum  (which  sum  shall   constitute   the   applicable
                    consideration)   of  (x)  the  total   amount   received  or
                    receivable by the Company as consideration  for the issue or
                    sale of such Convertible Securities,  plus (y) the aggregate
                    amount of additional  consideration,  if any, payable to the
                    Company upon the conversion or exchange thereof, by (ii) the
                    total  number of shares of Common  Stock  issuable  upon the
                    conversion or exchange of all such  Convertible  Securities)
                    shall be less than the Exercise Price in effect  immediately
                    prior to the time of such  issue  or  sale,  then the  total
                    maximum  number  of shares of  Common  Stock  issuable  upon
                    conversion  or exchange of all such  Convertible  Securities
                    shall be deemed to have been issued for such price per share
                    as of the  date of the  issue  or  sale of such  Convertible
                    Securities and thereafter  shall be deemed to be outstanding
                    for purposes of adjusting the Exercise Price,  provided that
                    (a) except as otherwise provided in subsection  3.6(b)(iii),
                    no adjustment  of the Exercise  Price shall be made upon the
                    actual  issuance of such  Common  Stock upon  conversion  or
                    exchange of such  Convertible  Securities and (b) no further
                    adjustment of the Exercise  Price shall be made by reason of
                    the issue or sale of Convertible Securities upon exercise of
                    any Options to purchase any such Convertible  Securities for
                    which  adjustments  of the  Exercise  Price  have  been made
                    pursuant to the other  provisions of subsection  3.6. If the
                    Company  issues  a  variable  rate  security,   despite  the
                    prohibition  thereon in the Securities  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 in the case of a Variable Rate  Transaction (as
                    defined in the Securities Purchase Agreement).

                         (iii) Change in Option Price or Conversion  Rate.  Upon
                    the happening of any of the following events, namely, if the
                    purchase  price  provided  for in any Option  referred to in
                    subsection  3.6(b)(i) hereof, the additional  consideration,
                    if any,  payable  upon the  conversion  or  exchange  of any
                    Convertible  Securities referred to in subsections 3.6(b)(i)
                    or 3.6(b)(ii),  or the rate at which Convertible  Securities
                    referred  to in  subsections  3.6(b)(i)  or  3.6(b)(ii)  are
                    convertible  into or  exchangeable  for Common  Stock  shall
                    change at any time  (including,  but not limited to, changes
                    under or by reason of provisions designed to protect against
                    dilution),  the Exercise Price in effect at the time of such
                    event shall  forthwith be readjusted  to the Exercise  Price

                                       11
<PAGE>

                    which  would  have  been in  effect  at such  time  had such
                    Options or Convertible Securities still outstanding provided
                    for such changed purchase price, additional consideration or
                    conversion  rate, as the case may be, at the time  initially
                    granted,  issued or sold. On the  termination  of any Option
                    for  which  any   adjustment   was  made  pursuant  to  this
                    subsection   3.6  or  any  right  to  convert  or   exchange
                    Convertible  Securities  for which any  adjustment  was made
                    pursuant  to  this   subsection   3.6   (including   without
                    limitation upon the redemption or purchase for consideration
                    of such Convertible Securities by the Company), the Exercise
                    Price then in effect hereunder shall forthwith be changed to
                    the  Exercise  Price  which would have been in effect at the
                    time of such  termination  had such  Option  or  Convertible
                    Securities,  to the extent outstanding  immediately prior to
                    such termination, never been issued.

                         (iv) Stock Dividends. Subject to the provisions of this
                    Section 3.6, in case the Company shall declare a dividend or
                    make any other  distribution  upon any stock of the  Company
                    (other  than the  Common  Stock)  payable  in Common  Stock,
                    Options or  Convertible  Securities,  then any Common Stock,
                    Options  or  Convertible  Securities,  as the  case  may be,
                    issuable in payment of such dividend or  distribution  shall
                    be deemed to have been issued or sold without consideration.

                         (v)  Consideration  for  Stock.  In case any  shares of
                    Common Stock,  Options or  Convertible  Securities  shall be
                    issued or sold for cash, the consideration received therefor
                    shall be deemed to be the net amount received by the Company
                    therefor, after deduction therefrom of any expenses incurred
                    or any  underwriting  commissions  or  concessions  paid  or
                    allowed by the Company in connection therewith.  In case any
                    shares of Common Stock,  Options or  Convertible  Securities
                    shall be issued or sold for a consideration other than cash,
                    the amount of the consideration  other than cash received by
                    the  Company  shall be deemed  to be the fair  value of such
                    consideration  as  determined  in good faith by the Board of
                    Directors  of the Company,  after  deduction of any expenses
                    incurred or any underwriting commissions or concessions paid
                    or allowed by the Company in connection  therewith.  In case
                    any Options shall be issued in connection with the issue and
                    sale of other securities of the Company, together comprising
                    one integral transaction in which no specific  consideration
                    is allocated to such  Options by the parties  thereto,  such
                    Options  shall  be  deemed  to have  been  issued  for  such
                    consideration  as  determined  in good faith by the Board of
                    Directors  of the  Company.  If  Common  Stock,  Options  or
                    Convertible  Securities  shall  be  issued  or  sold  by the
                    Company  and,  in  connection  therewith,  other  Options or
                    Convertible Securities (the "Additional Rights") are issued,
                    then the consideration  received or deemed to be received by
                    the Company shall be reduced by the fair market value of the
                    Additional  Rights (as  determined  using the  Black-Scholes
                    Pricing Model).

                                       12
<PAGE>

                         (vi)  Record  Date.  In case the  Company  shall take a
                    record of the holders of its Common Stock for the purpose of
                    entitling   them  (i)  to  receive  a   dividend   or  other
                    distribution payable in Common Stock, Options or Convertible
                    Securities  or  (ii) to  subscribe  for or  purchase  Common
                    Stock, Options or Convertible  Securities,  then such record
                    date  shall be deemed to be the date of the issue or sale of
                    the  shares of Common  Stock  deemed to have been  issued or
                    sold upon the  declaration of such dividend or the making of
                    such other  distribution or the date of the granting of such
                    right of subscription or purchase, as the case may be.

                    (c)  Notwithstanding  the foregoing,  no adjustment  will be
               made under this  Section 3.6 in respect  of: (i) the  issuance of
               securities  upon the exercise or  conversion  of any Common Stock
               Equivalents  issued by the Company prior to the Closing Date (but
               this Section 3.6 will apply to any amendments, modifications, and
               reissuances  thereof  and as a result of any  changes,  resets or
               adjustments to a Conversion or Exchange Price thereunder  whether
               or not as a result of any amendment, modification or reissuance),
               (ii) the  issuance of Common  Stock or Common  Stock  Equivalents
               pursuant to the  agreement  dated  December 1, 2004 with  Lippert
               Heilshorn & Associates,  an agreement  dated January 8, 2005 with
               Blausen and Associates,  and the Financing and Strategic Advisory
               Agreement  dated June 12, 2004 and the Placement  Agent Agreement
               with Sanders Morris  Harris,  and any amendments to the foregoing
               and any other placement agent  agreement,  approved by a majority
               of the Board of Directors, (iii) Common Stock issued or deemed to
               be issued upon approval of a majority of the non-employee members
               of the Board of  Directors  of the  Company or a majority  of the
               members of a committee of non-employee  directors established for
               such purpose, pursuant to options or similar awards to employees,
               directors,  and consultants  pursuant to the Company's 2004 Stock
               Incentive Plan or any successor plan similarly  approved,  as may
               be amended from time to time,  (iv) Common Stock issued or deemed
               to be issued to any bank or equipment lessor in connection with a
               financing or equipment  lease,  (v) Common Stock issued or deemed
               to be issued as a result of a reduction in the exercise  price of
               any of the Series A  Warrants,  the Series B Warrants or Series C
               Warrants,  (vi) issuance of Common Stock, at a value of $1.50 per
               share,  Series A  Warrants,  Series B  Warrants  and/or  Series C
               Warrants  and up to 20,000  additional  shares  per  $100,000  of
               principle (or such  additional  number of shares as approved by a
               majority of the Board of Directors) to holders of Bridge Notes in
               exchange  for  the  Bridge   Notes  and  Bridge   Warrants  in  a
               transaction approved by a majority of the members of the Board of
               Directors,  (vii) the  issuance of Common  Stock or Common  Stock
               Equivalents   pursuant  to  the  Amended  and  Restated   License
               Agreement dated December 30, 2004 with the University of Chicago,
               including any amendments  thereto,  (viii) Common Stock issued or
               deemed  to  be  issued  pursuant  to  a  "Strategic  Transaction"
               approved by a majority of the Board of  Directors.  A  "Strategic
               Transaction"  shall mean (x) any  transaction  with an  acquiror,
               acquisition  target  company  or merger  partner,  or (y) a joint
               venture,  corporate  alliance,  research  agreement  or licensing
               transaction  with  respect to one or more  technologies,  assets,
               compounds,   compound   families,   and/or  products  or  product
               candidates,  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; or (ix) shares issued to purchasers in a
               Second  Offering  as  provided  for  in the  Securities  Purchase
               Agreement  including  shares  issuable  to such  purchasers  upon
               exercise of Warrants issued in the Second Offering.

                                       13
<PAGE>

               3.7 Company  Reduction of Exercise Price. The Company may, at any
          time and in its sole  discretion,  reduce  the  Exercise  Price to any
          amount  for  any  period  deemed  appropriate  by a  majority  of  the
          Company's Board of Directors.

               3.8 Number of Warrant Shares.  Simultaneously with any adjustment
          to the  Exercise  Price  pursuant  to this  Section  3, the  number of
          Warrant  Shares that may be  purchased  upon  exercise of this Warrant
          shall be increased or  decreased  proportionately,  so that after such
          adjustment  the aggregate  Exercise  Price  payable  hereunder for the
          adjusted  number of Warrant  Shares shall be the same as the aggregate
          Exercise Price in effect immediately prior to such adjustment.

               3.9 Minimum  Adjustment of Exercise  Price.  If the amount of any
          adjustment of the Exercise Price  required  pursuant to this Section 3
          would  be  less  than  one-tenth  (1/10)  of one  percent  (1%) of the
          Exercise  Price in effect at the time such  adjustment is otherwise so
          required  to be  made,  such  amount  shall  be  carried  forward  and
          adjustment  with respect thereto made at the time of and together with
          any  subsequent  adjustment  which,  together with such amount and any
          other amount or amounts so carried  forward,  shall aggregate at least
          one tenth  (1/10) of one  percent  (1%) of such  Exercise  Price.  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.

               3.10 Certificate as to Adjustments.  The Company shall notify the
          Holder  in  writing,  no later  than the  Trading  Day  following  the
          issuance of any Common  Stock or Common Stock  Equivalents  subject to
          this section,  indicating therein the applicable issuance price, or of
          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  3.9,  upon the
          occurrence of any Dilutive  Issuance,  after the date of such Dilutive
          Issuance the Holder is entitled to receive a number of Warrant  Shares
          based upon the  adjusted  Exercise  Price  regardless  of whether  the
          Holder  accurately refers to the adjusted Exercise Price in the Notice
          of Exercise.

          4.  Registration  Rights.  The initial  holders of the Warrant  Shares
shall be entitled to the registration rights and other rights applicable to such
shares provided by the Registration Rights Agreement.

                                       14
<PAGE>

          5. Notices of Record Date. Upon (a) any  establishment  by the Company
of a record  date of the holders of any class of  securities  for the purpose of
determining  the  holders  thereof who are  entitled to receive any  dividend or
other distribution,  or right or option to acquire securities of the Company, or
any  other  right,   or  (b)  any  capital   reorganization,   reclassification,
recapitalization,  merger or consolidation of the Company with or into any other
Person,  any transfer of all or substantially all the assets of the Company,  or
any  voluntary  or  involuntary  dissolution,  liquidation  or winding up of the
Company,  or the sale, in a single  transaction,  of a majority of the Company's
voting stock (whether newly issued,  or from treasury,  or previously issued and
then  outstanding,  or any combination  thereof),  the Company shall mail to the
Holder at least  fifteen (15)  business  days,  or such longer  period as may be
required by law, prior to the record date specified therein and at least fifteen
(15) business days prior to the date specified in clause (ii) or (iii) hereof, a
notice  (but  only  to the  extent  such  disclosure  would  not  result  in the
dissemination of material,  non-public information to the Holder) specifying (i)
the date  established  as the  record  date for the  purpose  of such  dividend,
distribution,  option or right and a description of such dividend, distribution,
option   or   right,   (ii)  the  date  on   which   any  such   reorganization,
reclassification,  transfer, consolidation,  merger, dissolution, liquidation or
winding up, or sale is expected to become  effective and (iii) the date, if any,
fixed as to when the  holders of record of Common  Stock  shall be  entitled  to
exchange  their  shares  of  Common  Stock  for  securities  or  other  property
deliverable upon such reorganization, reclassification, transfer, consolidation,
merger,  dissolution,  liquidation  or winding up. Nothing herein shall prohibit
the Holder from  exercising  this Warrant  during the fifteen (15)  business day
period commencing on the date of such notice.

          6. Exchange of Warrant.  Subject to the provisions of Section 7 hereof
(if and to the extent applicable), this Warrant shall be exchangeable,  upon the
surrender hereof by the Holder at the principal  office of the Company,  for new
warrants of like tenor, each registered in the name of the Holder or, subject to
compliance with  applicable  federal and state  securities  laws, in the name of
such other  Persons as the Holder may direct (upon  payment by the Holder of any
applicable  transfer taxes).  Each of such new warrants shall be exercisable for
such number of Warrant  Shares as the Holder shall direct,  provided that all of
such new warrants shall represent,  in the aggregate,  the right to purchase the
same number of Warrant Shares and cash,  securities or other  property,  if any,
which may be purchased  by the Holder upon  exercise of this Warrant at the time
of its surrender.

          7. Transfer Provisions, etc.

          7.1 Legends.  Each certificate  representing any Warrant Shares issued
     upon exercise of this Warrant, and of any shares of Common Stock into which
     such Warrant Shares may be converted, shall bear the legend, if any, as may
     be required by the Securities Purchase Agreement.

          7.2 Mechanics of Transfer.

                    (a) Any  transfer of all or any portion of this Warrant (and
               the Warrant Shares),  or of any interest herein or therein,  that
               is otherwise in compliance  with applicable law shall be effected
               by  surrendering  this  Warrant to the  Company at its  principal
               office, together with a duly executed form of assignment,  in the
               form attached  hereto.  In the event of any such transfer of this
               Warrant,  subject to compliance with applicable federal and state
               securities  laws,  the  Company  shall  issue  a new  warrant  or
               warrants of like tenor to the transferee(s), representing, in the
               aggregate,  the right to  purchase  the same  number  of  Warrant
               Shares and cash,  securities or other property, if any, which may
               be purchased  by the Holder upon  exercise of this Warrant at the
               time of its surrender, in accordance with Section 2 hereof.

                                       15
<PAGE>

                    (b) In the event of any  transfer  of all or any  portion of
               this Warrant in accordance with Section 7.2(a) above, the Company
               shall  issue (i) a new  warrant of like tenor to the  transferee,
               representing  the right to purchase the number of Warrant Shares,
               and  cash,  securities  or other  property,  if any,  which  were
               purchasable  by the  Holder of the  transferred  portion  of this
               Warrant at the time of said  transfer,  and (ii) a new warrant of
               like tenor to the Holder,  representing the right to purchase the
               number of Warrant Shares,  if any, and cash,  securities or other
               property, if any, purchasable by the Holder of the un-transferred
               portion  of this  Warrant.  Until  this  Warrant  or any  portion
               thereof is transferred  on the books of the Company,  the Company
               may treat the Holder as the  absolute  holder of this Warrant and
               all  right,   title  and  interest   therein  for  all  purposes,
               notwithstanding any notice to the contrary.

               7.3 No  Restrictions  on  Transfer.  Subject to  compliance  with
          applicable  federal and state  securities  laws,  this Warrant and any
          portion  hereof,  the Warrant  Shares and the rights  hereunder may be
          transferred  by the Holder in its sole  discretion  at any time and to
          any Person or Persons,  including  without  limitation  Affiliates and
          affiliated groups of such Holder, without the consent of the Company.

               7.4 Warrant  Register.  The Company  shall keep at its  principal
          office a register for the registration, and registration of transfers,
          of the Warrants. The name and address of each Holder of one or more of
          the Warrants,  each transfer  thereof and the name and address of each
          transferee of one or more of the Warrants  shall be registered in such
          register.  The Company shall give to any Holder of a Warrant  promptly
          upon  request  therefor,  a complete and correct copy of the names and
          addresses of all registered Holders of the Warrants.

          8. Lost, Stolen or Destroyed  Warrant.  Upon receipt by the Company of
evidence  satisfactory to it of loss,  theft,  destruction or mutilation of this
Warrant  and,  in the  case of loss,  theft or  destruction,  on  delivery  of a
customary affidavit of the Holder and customary  unsecured indemnity  agreement,
or, in the case of mutilation,  upon  surrender of this Warrant,  the Company at
its expense  will execute and deliver,  or will  instruct its transfer  agent to
execute and deliver,  a new Warrant of like tenor and date and  representing the
same rights represented by such lost, stolen, destroyed or mutilated warrant and
any such lost,  stolen,  mutilated or destroyed  Warrant  thereupon shall become
void.

          9. General.

               9.1 Authorized Shares, Reservation of Shares for Issuance. At all
          times while this Warrant is  outstanding,  the Company shall  maintain
          its  corporate  authority  to issue,  and shall  have  authorized  and
          reserved for issuance upon  exercise of this  Warrant,  such number of
          shares  of  Common  Stock,  and  any  other  capital  stock  or  other
          securities  as shall be sufficient  to perform its  obligations  under
          this Warrant  (after giving effect to any and all  adjustments  to the

                                       16
<PAGE>

          number and kind of Warrant  Shares  purchasable  upon exercise of this
          Warrant).  The Company  further  covenants  that its  issuance of this
          Warrant  shall  constitute  full  authority  to its  officers  who are
          charged with the duty of executing  stock  certificates to execute and
          issue the  necessary  certificates  for the  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.

               9.2 No  Impairment.  The Company  will not, by  amendment  of its
          Certificate of Incorporation or through any  reorganization,  transfer
          of assets,  consolidation,  merger,  dissolution,  issuance or sale of
          securities, sale or other transfer of any of its assets or properties,
          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 action as may be necessary or appropriate in
          order  to  protect  the  rights  of  the  Holder   hereunder   against
          impairment.  Without  limiting the  generality of the  foregoing,  the
          Company  (a) will not  increase  the par value of any shares of Common
          Stock  receivable  upon the exercise of this Warrant  above the amount
          payable  therefor on such exercise,  (b) will take all action that may
          be necessary or  appropriate in order that the Company may validly and
          legally issue fully paid and nonassessable shares of Common Stock upon
          the  exercise of this  Warrant,  and (c) 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.

               9.3  No  Rights  as   Stockholder.   Except  as  provided  herein
          (including Sections 3 and 5), the Holder shall not be entitled to vote
          or to receive  dividends  or to be deemed  the holder of Common  Stock
          that may at any time be issuable upon exercise of this Warrant for any
          purpose  whatsoever,  nor shall anything contained herein be construed
          to confer  upon the Holder any of the rights of a  stockholder  of the
          Company or any right to vote for the election of directors or upon any
          matter submitted to stockholders at any meeting thereof, or to give or
          withhold   consent  to  any   corporate   action   (whether  upon  any
          recapitalization, issuance or reclassification of stock, change of par
          value or change  of stock to no par  value,  consolidation,  merger or
          conveyance or otherwise),  or to receive notice of meetings (except to
          the  extent  otherwise  provided  in  this  Warrant),  or  to  receive
          dividends  or  subscription   rights,  until  the  Holder  shall  have
          exercised  this Warrant and been issued  Warrant  Shares in accordance
          with the provisions hereof and continues to hold Warrant Shares.

               9.4  Notices.  Any  notices,   reports  or  other  correspondence
          (hereinafter collectively referred to as "correspondence") required or
          permitted to be given hereunder shall be sent by postage prepaid first
          class mail, overnight courier or facsimile transmission,  or delivered
          by hand to the  party  to whom  such  correspondence  is  required  or
          permitted to be given  hereunder.  The date of giving any notice shall
          be the date of its actual receipt.

                                       17
<PAGE>

                    (a) All  correspondence to the Company shall be addressed as
               follows:

                                    PharmaFrontiers Corp.
                                    2408 Timberloch, Suite B-7
                                    The Woodlands, Texas 77380
                                    Attn:  Chief Financial Officer

                                    with a copy to:

                                    Vinson & Elkins LLP
                                    First City Tower
                                    1001 Fannin Street, Suite 2300
                                    Houston, Texas 77002
                                    Attn:  Michael C. Blaney

                    (b) All  correspondence  to the Holder shall be addressed to
               the Holder at its address  appearing in the books  maintained  by
               the Company.

               9.5 Amendment  and Waiver.  This Warrant may only be amended upon
          the written consent of the Company and Holder.  No failure or delay of
          the Holder in exercising any power or right hereunder shall operate as
          a waiver thereof, nor shall any single or partial exercise of any such
          right or  power,  or any  abandonment  or  discontinuance  of steps to
          enforce such a right or power,  preclude any other or further exercise
          thereof or the  exercise of any other  right or power.  The rights and
          remedies of the Holder are  cumulative and not exclusive of any rights
          or remedies  which it would  otherwise  have.  If the Company fails to
          comply  with any  provision  of this  Warrant,  which  results  in any
          material  damages to the Holder,  the Company shall pay to 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 Holder in collecting any
          amounts  due  pursuant  hereto or in  otherwise  enforcing  any of its
          rights, powers or remedies hereunder.

               9.6  Governing   Law.  This  Warrant  will  be  governed  by  and
          interpreted  in  accordance  with  the  laws of the  State of New York
          without  regard to the  principles  of conflict  of laws.  The parties
          hereto hereby submit to the  jurisdiction of the United States federal
          and state courts  located in the State of New York with respect to any
          dispute arising under this Agreement,  the agreements  entered into in
          connection  herewith  or  the  transactions   contemplated  hereby  or
          thereby.

               9.7  Covenants  To Bind  Successor  and Assigns.  All  covenants,
          stipulations,  promises and agreements in this Warrant contained by or
          on  behalf of the  Company  shall  bind its  successors  and  assigns,
          whether so expressed or not.

               9.8  Severability.  In case  any  one or  more of the  provisions
          contained in this Warrant shall be invalid,  illegal or  unenforceable
          in any  respect,  the  validity,  legality and  enforceability  of the
          remaining provisions contained herein shall not in any way be affected
          or  impaired  thereby.  The  parties  shall  endeavor  in  good  faith
          negotiations  to  replace  the  invalid,   illegal  or   unenforceable
          provisions with valid provisions the economic effect of which comes as
          close as possible  to that of the  invalid,  illegal or  unenforceable
          provisions.

                                       18
<PAGE>

               9.9  Construction.  The  definitions  of this Warrant shall apply
          equally  to both  the  singular  and the  plural  forms  of the  terms
          defined.  Wherever the context may require,  any pronoun shall include
          the  corresponding  masculine,  feminine and neuter forms. The section
          and paragraph  headings used herein are for  convenience  of reference
          only,  are not  part  of  this  Warrant  and  are  not to  affect  the
          construction of or be taken into  consideration  in interpreting  this
          Warrant.

               9.10  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 the
          defense in any action for  specific  performance  that a remedy at law
          would be adequate.  In any action or proceeding brought to enforce any
          provision  of this  Warrant or where any  provision  hereof is validly
          asserted  as a  defense,  the  successful  party  to  such  action  or
          proceeding shall be entitled to recover reasonable  attorneys' fees in
          addition to any other available remedy.

                           [SIGNATURE PAGE TO FOLLOW]

                                       19
<PAGE>

          IN WITNESS  WHEREOF,  the  Company  has  executed  this  Common  Stock
Purchase Warrant as of the date first written above.

                                      COMPANY:

                                      PHARMAFRONTIERS CORP.

                                      By:
                                          --------------------------------------
                                      Name:  David B. McWilliams, President

                               SIGNATURE PAGE TO
                     SERIES A COMMON STOCK PURCHASE WARRANT

<PAGE>

                                   NOTICE AND
                                  SUBSCRIPTION

To:       PharmaFrontiers Corp.
          2408 Timberloch, Suite B-7
          The Woodlands, Texas 77380

          The  undersigned  hereby  elects to  exercise  the  right of  purchase
represented by the attached Warrant for, and to exercise thereunder,  __________
shares of Common Stock,  of  PHARMAFRONTIERS  CORP.,  a Texas  corporation  (the
"Company"),  and  tenders  herewith  payment of  $__________,  representing  the
aggregate  purchase  price for such shares based on the price per share provided
for in such  Warrant.  Such  payment is being made in  accordance  with  Section
2.1(a) of the attached Warrant.

          The undersigned hereby represents and warrants as follows:

          (a) the  undersigned  is acquiring such shares of Common Stock for its
own account  for  investment  and not for resale or with a view to  distribution
thereof  in  violation  of the  Securities  Act of  1933,  as  amended,  and the
regulations promulgated thereunder (the "Securities Act"); and

          (b) the undersigned is an "accredited investor" as defined in Rule 501
of Regulation D promulgated  under the  Securities Act and was not organized for
the  purpose of  acquiring  the  Warrant  or such  shares of Common  Stock.  The
undersigned's  financial  condition  is such that it is able to bear the risk of
holding such securities for an indefinite period of time and the risk of loss of
its entire investment.  The undersigned has sufficient  knowledge and experience
in investing  in  companies  similar to the Company so as to be able to evaluate
the risks and merits of its investment in the Company.

          Please issue a certificate or  certificates  for such shares of Common
Stock  in the  following  name or  names  and  denominations  and  deliver  such
certificate  or  certificates  to the  person or persons  listed  below at their
respective address set forth below:

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

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

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

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

          If said  number of shares of Common  Stock shall not be all the shares
of Common Stock issuable upon exercise of the attached Warrant, a new Warrant is
to be issued in the name of the  undersigned  for the remaining  balance of such
shares of Common Stock less any fraction of a share of Common Stock paid in cash
pursuant to Section 2.4 of the attached warrant.

Dated:
        -------------------                  --------------------------------
                                             Signature

                                       1
<PAGE>

          The undersigned  PharmaFrontiers  Corp. hereby acknowledges receipt of
this Notice and  Subscription  and  authorizes  issuance of the shares of Common
Stock described above.

PHARMAFRONTIERS CORP.

By:
   ---------------------------------------------
Title:
      ------------------------------------------
Date:
     -------------------------------------------

                                       2
<PAGE>

                               FORM OF ASSIGNMENT

                   (To be executed upon assignment of Warrant)

          For value received,  __________________________________  hereby sells,
assigns and transfers unto  __________________  the attached Warrant [__% of the
attached Warrant], together with all right, title and interest therein, and does
hereby  irrevocably  constitute  and  appoint  ____________________  attorney to
transfer  said  Warrant  [said  percentage  of said  Warrant]  on the  books  of
PHARMAFRONTIERS  CORP., a Texas corporation,  with full power of substitution in
the premises.

          If not all of the  attached  Warrant  is to be so  transferred,  a new
Warrant is to be issued in the name of the  undersigned  for the balance of said
Warrant.

          The  undersigned  hereby  agrees  that it will not  sell,  assign,  or
transfer the right,  title and interest in and to the Warrant unless  applicable
federal and state securities laws have been complied with.

Dated:
       --------------------            --------------------------------------
                                       Signature

                                       1

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