Document:

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                                                                EXHIBIT 4(F)(65)

                 AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT

     AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT (this "Amendment"), dated as
of January 21, 2005, among CAC WAREHOUSE FUNDING CORPORATION II, as borrower
(the "Borrower"), CREDIT ACCEPTANCE CORPORATION, as Originator (the
"Originator"), WACHOVIA CAPITAL MARKETS, LLC, as deal agent (the "Deal Agent")
and collateral agent (the "Collateral Agent"), WACHOVIA BANK, NATIONAL
ASSOCIATION, as liquidity agent for the VFCC Purchaser Group (the "Liquidity
Agent") and as the sole Investor (the "Investor") and VARIABLE FUNDING CAPITAL
CORPORATION, as a lender (and together with the Liquidity Agent, the "Lenders").

     Capitalized terms used and not defined in this Amendment shall have the
meanings given such terms in the Loan and Security Agreement, dated as of
September 30, 2003 (as amended, the "Loan Agreement"), among the Borrower, the
Originator, the Investors, the Lenders, the Deal Agent, the Backup Servicer and
the Collateral Agent.

                             PRELIMINARY STATEMENTS

     WHEREAS, each of the signatories hereto is party to the Loan Agreement; and

     WHEREAS, each of the signatories hereto wishes to amend the Loan Agreement
as hereinafter provided;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and in the Loan Agreement, and other good and valuable consideration, the
receipt and adequacy of which is hereby expressly acknowledged, and intending to
be legally bound hereby, the signatories hereto agree as follows:

     SECTION 1. Amendment.

          (a) Section 1.1 of the Loan Agreement is hereby amended by deleting
     the definition of "Amortization Event" in its entirety and replacing it
     with the following:

          "Amortization Event: The occurrence of any of the following events:
          (i) the Payment Rate averaged for any three (3) consecutive Collection
          Periods is less than 6.0%; (ii) the Net Yield Percentage is less than
          7.5%; (iii) the Weighted Average Performing Advance Rate exceeds
          45.0%; (iv) a Reserve Advance is made, except if on the date of such
          Reserve Advance, the Capital is zero; or (v) Collections are less than
          75.0% of Forecasted Collections for any two (2) consecutive Collection
          Periods.".

          (b) Section 1.1 of the Loan Agreement is hereby amended by deleting
     the definition of "Net Advance Rate" in its entirety and replacing it with
     the following:

          "Net Advance Rate: 75%.".

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          (c) Section 1.1 of the Loan Agreement is hereby amended by deleting
     the definition of "Weighted Average Total Advance Rate.".

          (d) Section 10.1 of the Loan Agreement is hereby amended by deleting
     clause (b) thereof in its entirety and replacing it with "[Reserved];".

          (e) Section 10.1(e) of the Loan Agreement is hereby amended by
     replacing "10.0%" with "6.5%".

     SECTION 2. Conditions to Effectiveness. This Amendment shall become
effective on and as of the date hereof, upon the receipt by the Deal Agent of an
executed counterpart of this Amendment from each party hereto.

     SECTION 3. Severability of Provisions. Any provision of this Amendment
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     SECTION 4. Captions. The captions in this Amendment are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

     SECTION 5. Agreement to Remain in Full Force and Effect. Except as amended
hereby, the Loan Agreement shall remain in full force and effect and is hereby
ratified, adopted and confirmed in all respects. All references in the Loan
Agreement to "herein," or words of like import, and all references to the Loan
Agreement in any agreement or document shall hereafter be deemed to refer to the
Loan Agreement as amended hereby.

     SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 7. Execution in Counterparts. This Amendment may be executed in any
number of counterparts and by different parties hereto on separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to
be an original and all of which counterparts, taken together, shall constitute
but one and the same Amendment.

     SECTION 8. Representations and Warranties. The Borrower hereby certifies
that (i) the representations and warranties made by it in Section 4.1 of the
Loan Agreement are true and correct as of the date hereof, as though made on and
as of the date hereof and (ii) as of the date hereof, there is no Termination
Event or Servicer Termination Event or event which, with the passage of time of
the giving of notice, could result in a Termination Event or a Servicer
Termination Event.

     SECTION 9. Waiver of Notice. Each of the parties hereto hereby waives any
notice in connection with the execution and delivery of this Amendment.

                            [SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the date and year first above written.

                                  CAC WAREHOUSE FUNDING
                                  CORPORATION II, as Borrower

                                  By:   /s/ Douglas W. Busk
                                     ---------------------
                                     Name:  Douglas W. Busk
                                     Title:  Treasurer

                                  WACHOVIA CAPITAL MARKETS, LLC, as
                                  Deal Agent and Collateral Agent

                                  By:  /s/ Prakash Wadhwani
                                     ----------------------
                                     Name: Prakash Wadhwani
                                     Title:

                                  WACHOVIA BANK, NATIONAL
                                  ASSOCIATION, as Liquidity Agent and the Sole
                                  Investor

                                  By:  /s/ Michael Swartz
                                    ---------------------
                                    Name: Michael Swartz
                                    Title:<PAGE>

                                                                    Exhibit 4.1

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

                          COMMON STOCK PURCHASE WARRANT

                 To Purchase [     ] Shares of Common Stock of

                               SCOLR PHARMA, INC.

      THIS COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value received,
_____________________ (the "Holder"), is entitled, upon the terms and subject to
the limitations on exercise and the conditions hereinafter set forth, at any
time on or after February 8, 2005 (the "Initial Exercise Date") and on or prior
to the close of business on February 8, 2010 (the "Termination Date") but not
thereafter, to subscribe for and purchase from SCOLR Pharma, Inc., a corporation
incorporated in the State of Delaware (the "Company"), up to [75,000] shares
(the "Warrant Shares") of Common Stock, of the Company (the "Common Stock"). The
purchase price of one share of Common Stock (the "Exercise Price") under this
Warrant shall be $5.00, subject to adjustment hereunder. The Exercise Price and
the number of Warrant Shares for which the Warrant is exercisable shall be
subject to adjustment as provided herein. CAPITALIZED TERMS USED AND NOT
OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THAT CERTAIN
COMMON STOCK PURCHASE AGREEMENT (THE "PURCHASE AGREEMENT"), DATED FEBRUARY 8,
2005, BETWEEN THE COMPANY AND THE PURCHASERS SIGNATORY THERETO.

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      1.    Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

      2.    Authorization of Shares. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable and
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such
issue).

      3.    Exercise of Warrant.

            (a)   Except as provided in Section 4 herein, exercise of the
   purchase rights represented by this Warrant may be made at any time or times
   on or after the Initial Exercise Date and on or before the Termination Date
   by the surrender of this Warrant and the Notice of Exercise Form annexed
   hereto duly executed, at the office of the Company (or such other office or
   agency of the Company as it may designate by notice in writing to the
   registered Holder at the address of such Holder appearing on the books of the
   Company) and upon payment of the Exercise Price of the shares thereby
   purchased by wire transfer or cashier's check drawn on a United States bank
   or by means of a cashless exercise pursuant to Section 3(d), the Holder shall
   be entitled to receive a certificate for the number of Warrant Shares so
   purchased. Certificates for shares purchased hereunder shall be delivered to
   the Holder within five (5) Trading Days after the date on which this Warrant
   shall have been exercised as aforesaid. This Warrant shall be deemed to have
   been exercised and such certificate or certificates shall be deemed to have
   been issued, and the 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 and all taxes required to be paid by the
   Holder, if any, pursuant to Section 5 prior to the issuance of such shares,
   have been paid. If the Company fails to deliver to the Holder a certificate
   or certificates representing the Warrant Shares pursuant to this Section 3(a)
   by the close of business on the fifth Trading Day after the date of exercise,
   then the Holder will have the right to rescind such exercise.

            (b) If this Warrant shall have been exercised in part, the Company
   shall, at the time of delivery of the certificate or certificates
   representing Warrant Shares, deliver to Holder a new Warrant evidencing the
   rights of Holder to purchase the unpurchased Warrant Shares called for by
   this Warrant, which new Warrant shall in all other respects be identical with
   this Warrant.

            (c) [Intentionally Omitted].

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            (d) If, but only if, at any time after one year from the date of
   issuance of this Warrant there is no effective Registration Statement
   registering the resale of the Warrant Shares by the Holder, this Warrant may
   also be exercised at such time by means of a "cashless exercise" in which the
   Holder shall be entitled to receive a certificate for the number of Warrant
   Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

      (A) = the Closing Price on the Trading Day immediately preceding the date
            of such election;

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

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

      4.    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 Exercise Price.

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

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

      7.    Transfer, Division and Combination.

            (a) Subject to compliance with any applicable securities laws and
   the conditions set forth in Sections 1 and 7(e) hereof and to the provisions
   of Section 4.1 of the Purchase Agreement, this Warrant and all rights
   hereunder are transferable, in whole or in part, upon surrender of this
   Warrant at the principal office of the Company, together with a written
   assignment of this Warrant substantially in the form attached hereto duly
   executed by the Holder or its agent or attorney and funds sufficient to pay
   any transfer taxes payable upon the making of such transfer. Upon such
   surrender and, if required, such payment, the Company shall execute and
   deliver a new Warrant or Warrants in the name of the assignee or assignees
   and in the denomination or denominations specified in

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   such instrument of assignment, and shall issue to the assignor a new Warrant
   evidencing the portion of this Warrant not so assigned, and this Warrant
   shall promptly be cancelled. A Warrant, if properly assigned, may be
   exercised by a new holder for the purchase of Warrant Shares without having a
   new Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
   presentation hereof at the aforesaid office of the Company, together with a
   written notice specifying the names and denominations in which new Warrants
   are to be issued, signed by the Holder or its agent or attorney. Subject to
   compliance with Section 7(a), as to any transfer which may be involved in
   such division or combination, the Company shall execute and deliver a new
   Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
   combined in accordance with such notice.

            (c) The Company shall prepare, issue and deliver at its own expense
   (other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d) The Company agrees to maintain, at its aforesaid office, books
   for the registration and the registration of transfer of the Warrants.

            (e) If, at the time of the surrender of this Warrant in connection
   with any transfer of this Warrant, the transfer of this Warrant shall not be
   registered pursuant to an effective registration statement under the
   Securities Act and under applicable state securities or blue sky laws, the
   Company may require, as a condition of allowing such transfer (i) that the
   Holder or transferee of this Warrant, as the case may be, furnish to the
   Company a written opinion of counsel (which opinion shall be in form,
   substance and scope customary for opinions of counsel in comparable
   transactions) to the effect that such transfer may be made without
   registration under the Securities Act and under applicable state securities
   or blue sky laws, (ii) that the holder or transferee execute and deliver to
   the Company an investment letter in form and substance acceptable to the
   Company and (iii) that the transferee be an "accredited investor" as defined
   in Rule 501(a) promulgated under the Securities Act.

      8.    No Rights as Shareholder until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price (or by means of a cashless exercise),
the Warrant Shares so purchased shall be and be deemed to be issued to such
Holder as the record owner of such shares as of the close of business on the
later of the date of such surrender or payment.

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

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

      11.   Adjustments of Exercise Price and Number of Warrant Shares. The
number and kind of securities purchasable upon the exercise of this Warrant and
the Exercise Price shall be subject to adjustment from time to time upon the
happening of any of the following. In case the Company shall (i) pay a dividend
in shares of Common Stock or make a distribution in shares of Common Stock to
holders of its outstanding Common Stock, (ii) subdivide its outstanding shares
of Common Stock into a greater number of shares, (iii) combine its outstanding
shares of Common Stock into a smaller number of shares of Common Stock, or (iv)
issue any shares of its capital stock in a reclassification of the Common Stock,
then the number of Warrant Shares purchasable upon exercise of this Warrant
immediately prior thereto shall be adjusted so that the Holder shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which it would have owned or have been entitled to receive had such
Warrant been exercised in advance thereof. Upon each such adjustment of the kind
and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at
an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing by the number of Warrant Shares or other securities of
the Company that are purchasable pursuant hereto immediately after such
adjustment. An adjustment made pursuant to this paragraph shall become effective
immediately after the effective date of such event retroactive to the record
date, if any, for such event.

      12.   Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of its property, assets or business to
another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of
common stock of the successor or acquiring corporation, or any cash, shares of
stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation ("Other Property"), are
to be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive 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 Other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such

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modifications as may be deemed appropriate (as determined in good faith by
resolution of the Board of Directors of the Company) in order to provide for
adjustments of Warrant Shares for which this Warrant is exercisable which shall
be as nearly equivalent as practicable to the adjustments provided for in this
Section 12. For purposes of this Section 12, "common stock of the successor or
acquiring corporation" shall include stock of such corporation of any class
which is not preferred as to dividends or assets over any other class of stock
of such corporation and which is not subject to redemption and shall also
include any evidences of indebtedness, shares of stock or other securities which
are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event and
any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

      13.   Notice of Adjustment. Whenever the number of Warrant Shares or
number or kind of securities or other property purchasable upon the exercise of
this Warrant or the Exercise Price is adjusted, as herein provided, the Company
shall give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

      14.   Notice of Corporate Action. If at any time:

            (a)   the Company shall take a record of the holders of its Common
   Stock for the purpose of entitling them to receive a dividend or other
   distribution, or any right to subscribe for or purchase any evidences of its
   indebtedness, any shares of stock of any class or any other securities or
   property, or to receive any other right, or

            (b) there shall be any capital reorganization of the Company, any
   reclassification or recapitalization of the capital stock of the Company or
   any consolidation or merger of the Company with, or any sale, transfer or
   other disposition of all or substantially all the property, assets or
   business of the Company to, another corporation or,

            (c) there shall be a voluntary or involuntary dissolution,
   liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 10 calendar days' prior written notice of the date on which a record date
shall be selected for such dividend, distribution or right or for determining
rights to vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 10
calendar days' prior written notice of the date when the same shall take place.
Such notice in accordance with the foregoing clause also shall specify (i) the
date on which any such record is to be taken for the purpose of such

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dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

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

            Except and to the extent as waived or consented to by the Holder,
the Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (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.

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

      16.   Registration Rights. The Warrant Shares shall be entitled to the
piggy-back registration rights as set forth in Section 6(e) of that certain
Registration Rights Agreement, dated as of February 8, 2005, by and between the
Company and the purchasers listed on Schedule I thereto (the "Rights
Agreement"), subject to customary underwriter cutbacks applicable to holders of
registration rights. The Company acknowledges that this Section 16 is

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intended to allow inclusion of the Warrant Shares on the registration statement
contemplated by Section 2(a) of the Rights Agreement.

      17.   Miscellaneous.

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

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

            (c) Nonwaiver and Expenses. No course of dealing or any delay or
   failure to exercise any right hereunder on the part of Holder shall operate
   as a waiver of such right or otherwise prejudice Holder's rights, powers or
   remedies, notwithstanding all rights hereunder terminate on the Termination
   Date. If the Company willfully and knowingly fails to comply with any
   provision of this Warrant, which results in any material damages to the
   Holder, the Company shall pay to 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.

            (d) Notices. Any notice, request or other document required or
   permitted to be given or delivered to the Holder by the Company shall be
   delivered in accordance with the notice provisions of the Purchase Agreement;
   provided upon any permitted assignment of this Warrant, the assignee shall
   promptly provide the Company with its contact information.

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

            (f) Remedies. 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.

            (g) Successors and Assigns. Subject to applicable securities laws,
   this Warrant and the rights and obligations evidenced hereby shall inure to
   the benefit of and be binding upon the successors of the Company and the
   successors and permitted assigns of Holder. The provisions of this Warrant
   are intended to be for the benefit of all Holders

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   from time to time of this Warrant and shall be enforceable by any such Holder
   or holder of Warrant Shares.

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

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

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

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

                                       9
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  February 8, 2005

                                      SCOLR PHARMA, INC.

                                      By:_______________________________________
                                         Name:
                                         Title:

                                       10
<PAGE>

                               NOTICE OF EXERCISE

To:   SCOLR Pharma, Inc.

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

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

            [ ] in lawful money of the United States; or

            [ ] the cancellation of such number of Warrant Shares as is
                necessary, in accordance with the formula set forth in
                subsection 3(d), to exercise this Warrant with respect to the
                maximum number of Warrant Shares purchasable pursuant to the
                cashless exercise procedure set forth in subsection 3(d).

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

            _________________________________

The Warrant Shares shall be delivered to the following:

            _________________________________

            _________________________________

            _________________________________

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

                                   [PURCHASER]

                                   By:___________________________
                                      Name:
                                      Title:

                                   Dated:________________________

<PAGE>

                                 ASSIGNMENT FORM

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

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

___________________________________________________________________.

___________________________________________________________________

                                              Dated:______________,_______

                  Holder's Signature:_____________________________

                  Holder's Address:  _____________________________

                                     _____________________________

Signature Guaranteed:  ___________________________________________

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]