Document:

Exhibit 10.2

                         SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT (the "Agreement"),  dated as of July 15,
2013, by and between  INDEPENDENCE  ENERGY  CORP.,  a Nevada  corporation,  with
headquarters located at 3020 Old Ranch Parkway - Suite 300, Seal Beach, CA 90740
(the "Company"), and ASHER ENTERPRISES,  INC., a Delaware corporation,  with its
address at 1 Linden Place, Suite 207, Great Neck, NY 11021 (the "Buyer").

WHEREAS:

     A. The Company and the Buyer are executing and delivering this Agreement in
reliance upon the exemption from securities  registration  afforded by the rules
and  regulations  as  promulgated  by the United States  Securities and Exchange
Commission  (the "SEC") under the  Securities Act of 1933, as amended (the "1933
Act");

     B. Buyer  desires to purchase  and the  Company  desires to issue and sell,
upon the terms and conditions set forth in this Agreement an 8% convertible note
of the  Company,  in the form  attached  hereto as Exhibit  A, in the  aggregate
principal amount of $57,000.00  (together with any note(s) issued in replacement
thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof,  the "Note"),  convertible  into shares of common stock,
$0.001 par value per share, of the Company (the "Common Stock"),  upon the terms
and subject to the limitations and conditions set forth in such Note.

     C. The Buyer wishes to purchase,  upon the terms and  conditions  stated in
this Agreement,  such principal amount of Note as is set forth immediately below
its name on the signature pages hereto; and

     NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby
agree as follows:

     1. Purchase and Sale of Note.

     a.  Purchase of Note. On the Closing Date (as defined  below),  the Company
shall  issue and sell to the Buyer and the  Buyer  agrees to  purchase  from the
Company  such  principal  amount of Note as is set forth  immediately  below the
Buyer's name on the signature pages hereto.

     b. Form of Payment.  On the Closing Date (as defined below),  (i) the Buyer
shall pay the  purchase  price  for the Note to be issued  and sold to it at the
Closing  (as  defined  below)  (the  "Purchase   Price")  by  wire  transfer  of
immediately  available  funds to the Company,  in accordance  with the Company's
written  wiring  instructions,  against  delivery  of the Note in the  principal
amount equal to the Purchase Price as is set forth immediately below the Buyer's
name on the signature pages hereto, and (ii) the Company shall deliver such duly
executed Note on behalf of the Company,  to the Buyer,  against delivery of such
Purchase Price.
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     c. Closing Date.  Subject to the  satisfaction  (or written  waiver) of the
conditions thereto set forth in Section 6 and Section 7 below, the date and time
of the issuance and sale of the Note  pursuant to this  Agreement  (the "Closing
Date") shall be 12:00 noon,  Eastern Standard Time on or about July 17, 2013, or
such  other  mutually  agreed  upon  time.  The  closing  of  the   transactions
contemplated by this Agreement (the  "Closing")  shall occur on the Closing Date
at such location as may be agreed to by the parties.

     2.  Buyer's  Representations  and  Warranties.  The  Buyer  represents  and
warrants to the Company that:

     a. Investment  Purpose.  As of the date hereof, the Buyer is purchasing the
Note and the shares of Common Stock  issuable  upon  conversion  of or otherwise
pursuant to the Note (including,  without limitation,  such additional shares of
Common  Stock,  if any, as are  issuable (i) on account of interest on the Note,
(ii) as a result of the events  described in Sections 1.3 and 1.4(g) of the Note
or (iii) in payment of the  Standard  Liquidated  Damages  Amount (as defined in
Section  2(f) below)  pursuant to this  Agreement,  such shares of Common  Stock
being  collectively   referred  to  herein  as  the  "Conversion   Shares"  and,
collectively with the Note, the "Securities") for its own account and not with a
present view towards the public sale or distribution thereof, except pursuant to
sales  registered or exempted from  registration  under the 1933 Act;  provided,
however, that by making the representations  herein, the Buyer does not agree to
hold any of the  Securities  for any minimum or other specific term and reserves
the  right  to  dispose  of the  Securities  at any time in  accordance  with or
pursuant to a registration statement or an exemption under the 1933 Act.

     b. Accredited  Investor  Status.  The Buyer is an "accredited  investor" as
that term is defined in Rule 501(a) of Regulation D (an "Accredited Investor").

     c. Reliance on Exemptions.  The Buyer  understands  that the Securities are
being  offered  and sold to it in reliance  upon  specific  exemptions  from the
registration requirements of United States federal and state securities laws and
that the  Company is relying  upon the truth and  accuracy  of, and the  Buyer's
compliance with, the representations,  warranties,  agreements,  acknowledgments
and  understandings  of the  Buyer set forth  herein in order to  determine  the
availability  of such exemptions and the eligibility of the Buyer to acquire the
Securities.

     d. Information.  The Buyer and its advisors,  if any, have been, and for so
long as the Note remain  outstanding  will  continue to be,  furnished  with all
materials  relating to the business,  finances and operations of the Company and
materials  relating  to the offer  and sale of the  Securities  which  have been
requested by the Buyer or its advisors. The Buyer and its advisors, if any, have
been,  and for so long as the  Note  remain  outstanding  will  continue  to be,
afforded the  opportunity to ask questions of the Company.  Notwithstanding  the
foregoing,  the Company has not  disclosed to the Buyer any  material  nonpublic
information and will not disclose such  information  unless such  information is
disclosed to the public prior to or promptly  following  such  disclosure to the
Buyer.  Neither  such  inquiries  nor  any  other  due  diligence  investigation
conducted by Buyer or any of its advisors or representatives shall modify, amend
or affect Buyer's right to rely on the Company's  representations and warranties

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contained in Section 3 below.  The Buyer  understands that its investment in the
Securities  involves a significant degree of risk. The Buyer is not aware of any
facts that may constitute a breach of any of the Company's  representations  and
warranties made herein.

     e. Governmental Review. The Buyer understands that no United States federal
or state agency or any other  government or governmental  agency has passed upon
or made any recommendation or endorsement of the Securities.

     f. Transfer or Re-sale.  The Buyer  understands that (i) the sale or resale
of the Securities has not been and is not being registered under the 1933 Act or
any applicable  state securities laws, and the Securities may not be transferred
unless  (a) the  Securities  are  sold  pursuant  to an  effective  registration
statement under the 1933 Act, (b) the Buyer shall have delivered to the Company,
at the cost of the Buyer, an opinion of counsel that shall be in form, substance
and scope  customary for opinions of counsel in comparable  transactions  to the
effect that the Securities to be sold or transferred  may be sold or transferred
pursuant to an exemption from such registration, which opinion shall be accepted
by the Company, (c) the Securities are sold or transferred to an "affiliate" (as
defined in Rule 144 promulgated  under the 1933 Act (or a successor rule) ("Rule
144")) of the Buyer who agrees to sell or otherwise transfer the Securities only
in accordance with this Section 2(f) and who is an Accredited Investor,  (d) the
Securities  are  sold  pursuant  to Rule  144,  or (e) the  Securities  are sold
pursuant to Regulation S under the 1933 Act (or a successor  rule)  ("Regulation
S"),  and the Buyer  shall have  delivered  to the  Company,  at the cost of the
Buyer,  an  opinion  of  counsel  that  shall be in form,  substance  and  scope
customary for opinions of counsel in corporate transactions, which opinion shall
be accepted by the Company; (ii) any sale of such Securities made in reliance on
Rule 144 may be made only in accordance with the terms of said Rule and further,
if  said  Rule  is  not  applicable,   any  re-sale  of  such  Securities  under
circumstances  in which the seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the 1933 Act) may
require compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC  thereunder;  and (iii) neither the Company nor any other
person is under any obligation to register such Securities under the 1933 Act or
any state  securities  laws or to comply  with the terms and  conditions  of any
exemption  thereunder (in each case).  Notwithstanding the foregoing or anything
else  contained  herein  to the  contrary,  the  Securities  may be  pledged  as
collateral  in  connection  with a bona fide  margin  account  or other  lending
arrangement.

     g. Legends. The Buyer understands that the Note and, until such time as the
Conversion  Shares have been registered  under the 1933 Act may be sold pursuant
to Rule  144 or  Regulation  S  without  any  restriction  as to the  number  of
securities  as of a  particular  date  that can then be  immediately  sold,  the
Conversion  Shares may bear a restrictive  legend in substantially the following
form  (and  a  stop-transfer  order  may  be  placed  against  transfer  of  the
certificates for such Securities):

      "NEITHER THE ISSUANCE AND SALE OF THE  SECURITIES  REPRESENTED BY
      THIS  CERTIFICATE NOR THE SECURITIES INTO WHICH THESE  SECURITIES
      ARE EXERCISABLE  HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF

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      1933,  AS AMENDED,  OR  APPLICABLE  STATE  SECURITIES  LAWS.  THE
      SECURITIES  MAY NOT BE OFFERED  FOR SALE,  SOLD,  TRANSFERRED  OR
      ASSIGNED  (I) IN THE  ABSENCE  OF (A) AN  EFFECTIVE  REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED,  OR (B) AN OPINION OF COUNSEL  (WHICH  COUNSEL  SHALL BE
      SELECTED BY THE HOLDER),  IN A GENERALLY  ACCEPTABLE  FORM,  THAT
      REGISTRATION  IS NOT REQUIRED  UNDER SAID ACT OR (II) UNLESS SOLD
      PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
      THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
      BONA FIDE MARGIN  ACCOUNT OR OTHER LOAN OR FINANCING  ARRANGEMENT
      SECURED BY THE SECURITIES."

     The legend set forth above  shall be removed and the Company  shall issue a
certificate  without such legend to the holder of any Security  upon which it is
stamped,  if, unless otherwise required by applicable state securities laws, (a)
such Security is registered for sale under an effective  registration  statement
filed  under  the  1933 Act or  otherwise  may be sold  pursuant  to Rule 144 or
Regulation  S without any  restriction  as to the number of  securities  as of a
particular  date that can then be immediately  sold, or (b) such holder provides
the Company with an opinion of counsel,  in form,  substance and scope customary
for opinions of counsel in comparable transactions,  to the effect that a public
sale or transfer of such  Security  may be made without  registration  under the
1933 Act,  which  opinion  shall be  accepted by the Company so that the sale or
transfer is effected.  The Buyer agrees to sell all Securities,  including those
represented  by a  certificate(s)  from which the legend  has been  removed,  in
compliance  with applicable  prospectus  delivery  requirements,  if any. In the
event that the Company  does not accept the  opinion of counsel  provided by the
Buyer with respect to the transfer of Securities  pursuant to an exemption  from
registration,  such as Rule 144 or  Regulation  S, at the  Deadline,  it will be
considered an Event of Default pursuant to Section 3.2 of the Note.

     h.  Authorization;  Enforcement.  This  Agreement has been duly and validly
authorized. This Agreement has been duly executed and delivered on behalf of the
Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer
enforceable in accordance with its terms.

     i.  Residency.  The  Buyer is a  resident  of the  jurisdiction  set  forth
immediately below the Buyer's name on the signature pages hereto.

     3.  Representations  and Warranties of the Company.  The Company represents
and warrants to the Buyer that:

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<PAGE>
     a. Organization and Qualification. The Company and each of its Subsidiaries
(as defined below),  if any, is a corporation  duly organized,  validly existing
and in  good  standing  under  the  laws  of the  jurisdiction  in  which  it is
incorporated, with full power and authority (corporate and other) to own, lease,
use and operate  its  properties  and to carry on its  business as and where now
owned, leased, used, operated and conducted.  Schedule 3(a) sets forth a list of
all of the  Subsidiaries  of the Company and the  jurisdiction  in which each is
incorporated.  The Company and each of its  Subsidiaries  is duly qualified as a
foreign corporation to do business and is in good standing in every jurisdiction
in  which  its  ownership  or use of  property  or the  nature  of the  business
conducted by it makes such  qualification  necessary except where the failure to
be so qualified or in good standing  would not have a Material  Adverse  Effect.
"Material  Adverse  Effect" means any material  adverse  effect on the business,
operations,  assets,  financial  condition  or  prospects  of the Company or its
Subsidiaries,  if any,  taken as a whole,  or on the  transactions  contemplated
hereby or by the  agreements  or  instruments  to be entered into in  connection
herewith.  "Subsidiaries"  means any corporation or other organization,  whether
incorporated  or  unincorporated,   in  which  the  Company  owns,  directly  or
indirectly, any equity or other ownership interest.

     b. Authorization;  Enforcement. (i) The Company has all requisite corporate
power and  authority to enter into and perform this  Agreement,  the Note and to
consummate  the  transactions  contemplated  hereby and thereby and to issue the
Securities,  in accordance with the terms hereof and thereof, (ii) the execution
and delivery of this Agreement,  the Note by the Company and the consummation by
it of the  transactions  contemplated  hereby  and  thereby  (including  without
limitation,  the  issuance  of the Note and the  issuance  and  reservation  for
issuance of the Conversion  Shares issuable upon conversion or exercise thereof)
have been duly  authorized  by the  Company's  Board of Directors and no further
consent  or  authorization  of the  Company,  its  Board  of  Directors,  or its
shareholders  is  required,  (iii) this  Agreement  has been duly  executed  and
delivered by the Company by its authorized  representative,  and such authorized
representative  is the true and official  representative  with authority to sign
this Agreement and the other documents executed in connection  herewith and bind
the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and  delivery  by the  Company  of the  Note,  each  of  such  instruments  will
constitute,  a legal,  valid and binding  obligation of the Company  enforceable
against the Company in accordance with its terms.

     c.  Capitalization.  As of the date hereof, the authorized capital stock of
the Company consists of: (i) 375,000,000 shares of Class A Common Stock,  $0.001
par value per share, of which 121,804,155 shares are issued and outstanding; and
(ii) 10,000,000  shares of Class A Preferred Stock,  $0.001 par value per share,
of which no shares are  issued  and  outstanding;  no shares  are  reserved  for
issuance  pursuant to the Company's  stock option plans,  no shares are reserved
for issuance  pursuant to securities  (other than the Note)  exercisable for, or
convertible  into or  exchangeable  for  shares of Common  Stock and  82,000,000
shares are  reserved  for  issuance  upon  conversion  of the Note.  All of such
outstanding  shares  of  capital  stock  are,  or upon  issuance  will be,  duly
authorized,  validly issued, fully paid and nonassessable.  No shares of capital
stock of the  Company  are  subject to  preemptive  rights or any other  similar
rights of the  shareholders of the Company or any liens or encumbrances  imposed
through the actions or failure to act of the Company.  As of the effective  date
of this Agreement, (i) there are no outstanding options, warrants, scrip, rights
to  subscribe  for,   puts,   calls,   rights  of  first  refusal,   agreements,

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<PAGE>
understandings,   claims  or  other  commitments  or  rights  of  any  character
whatsoever relating to, or securities or rights convertible into or exchangeable
for any shares of capital  stock of the Company or any of its  Subsidiaries,  or
arrangements  by which the Company or any of its  Subsidiaries  is or may become
bound to issue  additional  shares of capital stock of the Company or any of its
Subsidiaries,  (ii) there are no  agreements  or  arrangements  under  which the
Company or any of its  Subsidiaries  is obligated to register the sale of any of
its or their  securities under the 1933 Act and (iii) there are no anti-dilution
or price adjustment  provisions  contained in any security issued by the Company
(or in any  agreement  providing  rights  to  security  holders)  that  will  be
triggered by the issuance of the Note or the Conversion  Shares. The Company has
furnished to the Buyer true and correct  copies of the Company's  Certificate of
Incorporation as in effect on the date hereof  ("Certificate of Incorporation"),
the Company's Bylaws,  as in effect on the date hereof (the "By-laws"),  and the
terms of all securities  convertible into or exercisable for Common Stock of the
Company and the material rights of the holders thereof in respect  thereto.  The
Company  shall  provide the Buyer with a written  update of this  representation
signed by the  Company's  Chief  Executive  on behalf of the  Company  as of the
Closing Date.

     d.  Issuance  of Shares.  The  Conversion  Shares are duly  authorized  and
reserved for issuance  and, upon  conversion of the Note in accordance  with its
respective terms,  will be validly issued,  fully paid and  non-assessable,  and
free from all taxes,  liens,  claims and encumbrances  with respect to the issue
thereof and shall not be subject to preemptive rights or other similar rights of
shareholders  of the Company  and will not impose  personal  liability  upon the
holder thereof.

     e. Acknowledgment of Dilution. The Company understands and acknowledges the
potentially  dilutive  effect  to the  Common  Stock  upon the  issuance  of the
Conversion Shares upon conversion of the Note. The Company further  acknowledges
that its obligation to issue  Conversion  Shares upon  conversion of the Note in
accordance  with  this  Agreement,   the  Note  is  absolute  and  unconditional
regardless  of the dilutive  effect that such issuance may have on the ownership
interests of other shareholders of the Company.

     f. No Conflicts. The execution, delivery and performance of this Agreement,
the Note by the Company and the  consummation by the Company of the transactions
contemplated hereby and thereby (including, without limitation, the issuance and
reservation for issuance of the Conversion Shares) will not (i) conflict with or
result in a violation of any provision of the  Certificate of  Incorporation  or
By-laws,  or (ii)  violate  or  conflict  with,  or  result  in a breach  of any
provision of, or constitute a default (or an event which with notice or lapse of
time or both  could  become a  default)  under,  or give to others any rights of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture,  patent,  patent license or instrument to which the Company or any of
its  Subsidiaries  is a party,  or (iii) result in a violation of any law, rule,
regulation,  order,  judgment or decree (including  federal and state securities
laws and  regulations and regulations of any  self-regulatory  organizations  to
which the Company or its  securities  are subject)  applicable to the Company or
any of its  Subsidiaries or by which any property or asset of the Company or any
of its Subsidiaries is bound or affected  (except for such conflicts,  defaults,
terminations,  amendments, accelerations,  cancellations and violations as would
not, individually or in the aggregate,  have a Material Adverse Effect). Neither

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the Company nor any of its  Subsidiaries  is in violation of its  Certificate of
Incorporation, By-laws or other organizational documents and neither the Company
nor any of its  Subsidiaries is in default (and no event has occurred which with
notice or lapse of time or both could put the Company or any of its Subsidiaries
in default) under, and neither the Company nor any of its Subsidiaries has taken
any action or failed to take any action  that would give to others any rights of
termination,   amendment,   acceleration  or  cancellation  of,  any  agreement,
indenture or  instrument  to which the Company or any of its  Subsidiaries  is a
party  or by  which  any  property  or  assets  of  the  Company  or  any of its
Subsidiaries  is bound or affected,  except for possible  defaults as would not,
individually or in the aggregate, have a Material Adverse Effect. The businesses
of the Company and its Subsidiaries,  if any, are not being conducted, and shall
not be conducted so long as the Buyer owns any of the  Securities,  in violation
of any law,  ordinance  or  regulation  of any  governmental  entity.  Except as
specifically  contemplated  by this Agreement and as required under the 1933 Act
and any applicable  state securities laws, the Company is not required to obtain
any consent, authorization or order of, or make any filing or registration with,
any court,  governmental agency, regulatory agency, self regulatory organization
or stock  market  or any  third  party in order for it to  execute,  deliver  or
perform any of its obligations under this Agreement, the Note in accordance with
the terms hereof or thereof or to issue and sell the Note in accordance with the
terms hereof and to issue the Conversion Shares upon conversion of the Note. All
consents, authorizations, orders, filings and registrations which the Company is
required to obtain  pursuant to the  preceding  sentence  have been  obtained or
effected on or prior to the date hereof.  The Company is not in violation of the
listing  requirements of the Over-the-  Counter Bulletin Board (the "OTCBB") and
does not  reasonably  anticipate  that the Common  Stock will be delisted by the
OTCBB in the foreseeable future. The Company and its Subsidiaries are unaware of
any facts or circumstances which might give rise to any of the foregoing.

     g. SEC Documents;  Financial  Statements.  The Company has timely filed all
reports,  schedules,  forms, statements and other documents required to be filed
by it with the SEC  pursuant to the  reporting  requirements  of the  Securities
Exchange Act of 1934,  as amended (the "1934 Act") (all of the  foregoing  filed
prior to the  date  hereof  and all  exhibits  included  therein  and  financial
statements  and  schedules  thereto and  documents  (other than exhibits to such
documents)  incorporated by reference  therein,  being  hereinafter  referred to
herein as the "SEC Documents"). Upon written request the Company will deliver to
the  Buyer  true and  complete  copies  of the SEC  Documents,  except  for such
exhibits and  incorporated  documents.  As of their  respective  dates,  the SEC
Documents  complied in all material  respects with the  requirements of the 1934
Act and the rules and regulations of the SEC promulgated  thereunder  applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC,  contained  any untrue  statement of a material fact or omitted to
state a material  fact  required to be stated  therein or  necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading.  None of the statements made in any such SEC Documents is,
or has been,  required to be amended or updated under applicable law (except for
such statements as have been amended or updated in subsequent  filings prior the
date hereof).  As of their  respective  dates,  the financial  statements of the
Company  included  in the SEC  Documents  complied  as to  form in all  material
respects with  applicable  accounting  requirements  and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared  in  accordance  with  United  States  generally  accepted   accounting

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principles, consistently applied, during the periods involved and fairly present
in all material respects the consolidated  financial position of the Company and
its  consolidated  Subsidiaries  as of the dates  thereof  and the  consolidated
results of their  operations and cash flows for the periods then ended (subject,
in the case of unaudited  statements,  to normal  year-end  audit  adjustments).
Except as set forth in the financial  statements of the Company  included in the
SEC Documents,  the Company has no liabilities,  contingent or otherwise,  other
than (i) liabilities  incurred in the ordinary course of business  subsequent to
April 30, 2013, and (ii) obligations under contracts and commitments incurred in
the  ordinary  course of business  and not  required  under  generally  accepted
accounting  principles  to be reflected  in such  financial  statements,  which,
individually or in the aggregate, are not material to the financial condition or
operating  results of the  Company.  The  Company  is  subject to the  reporting
requirements of the 1934 Act.

     h.  Absence of Certain  Changes.  Since April 30,  2013,  there has been no
material  adverse  change and no  material  adverse  development  in the assets,
liabilities,  business, properties,  operations, financial condition, results of
operations,  prospects or 1934 Act reporting status of the Company or any of its
Subsidiaries.

     i. Absence of  Litigation.  There is no action,  suit,  claim,  proceeding,
inquiry  or  investigation  before or by any  court,  public  board,  government
agency, self-regulatory organization or body pending or, to the knowledge of the
Company or any of its Subsidiaries,  threatened against or affecting the Company
or any of its Subsidiaries,  or their officers or directors in their capacity as
such,  that could have a  Material  Adverse  Effect.  Schedule  3(i)  contains a
complete list and summary description of any pending or, to the knowledge of the
Company,  threatened  proceeding  against or affecting the Company or any of its
Subsidiaries, without regard to whether it would have a Material Adverse Effect.
The Company and its Subsidiaries are unaware of any facts or circumstances which
might give rise to any of the foregoing.

     j. Patents,  Copyrights, etc. The Company and each of its Subsidiaries owns
or  possesses  the  requisite  licenses  or  rights to use all  patents,  patent
applications,  patent rights, inventions,  know-how, trade secrets,  trademarks,
trademark applications, service marks, service names, trade names and copyrights
("Intellectual  Property") necessary to enable it to conduct its business as now
operated (and, as presently contemplated to be operated in the future); there is
no claim or action by any person pertaining to, or proceeding pending, or to the
Company's knowledge threatened,  which challenges the right of the Company or of
a Subsidiary with respect to any Intellectual Property necessary to enable it to
conduct its  business as now operated  (and,  as  presently  contemplated  to be
operated in the future); to the best of the Company's  knowledge,  the Company's
or its Subsidiaries'  current and intended  products,  services and processes do
not  infringe on any  Intellectual  Property or other rights held by any person;
and the Company is unaware of any facts or  circumstances  which might give rise
to any of the  foregoing.  The Company and each of its  Subsidiaries  have taken
reasonable  security measures to protect the secrecy,  confidentiality and value
of their Intellectual Property.

     k. No Materially Adverse Contracts, Etc. Neither the Company nor any of its
Subsidiaries is subject to any charter, corporate or other legal restriction, or
any judgment,  decree,  order,  rule or regulation  which in the judgment of the

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Company's  officers has or is expected in the future to have a Material  Adverse
Effect.  Neither  the  Company  nor any of its  Subsidiaries  is a party  to any
contract or agreement which in the judgment of the Company's  officers has or is
expected to have a Material Adverse Effect.

     l. Tax Status.  The Company and each of its  Subsidiaries has made or filed
all federal,  state and foreign  income and all other tax  returns,  reports and
declarations  required by any  jurisdiction  to which it is subject  (unless and
only to the extent that the Company and each of its  Subsidiaries  has set aside
on its books  provisions  reasonably  adequate for the payment of all unpaid and
unreported taxes) and has paid all taxes and other governmental  assessments and
charges  that are  material  in amount,  shown or  determined  to be due on such
returns,  reports and  declarations,  except those being contested in good faith
and has set aside on its books provisions reasonably adequate for the payment of
all taxes for periods  subsequent to the periods to which such returns,  reports
or declarations  apply. There are no unpaid taxes in any material amount claimed
to be due by the taxing authority of any  jurisdiction,  and the officers of the
Company  know of no basis for any such claim.  The  Company  has not  executed a
waiver with respect to the statute of limitations  relating to the assessment or
collection  of any foreign,  federal,  state or local tax. None of the Company's
tax returns is presently being audited by any taxing authority.

     m. Certain  Transactions.  Except for arm's length transactions pursuant to
which the Company or any of its  Subsidiaries  makes  payments  in the  ordinary
course of business upon terms no less  favorable  than the Company or any of its
Subsidiaries  could obtain from third  parties and other than the grant of stock
options  disclosed  on  Schedule  3(c),  none  of the  officers,  directors,  or
employees  of the  Company  is  presently  a party to any  transaction  with the
Company  or any of its  Subsidiaries  (other  than for  services  as  employees,
officers and directors),  including any contract, agreement or other arrangement
providing for the furnishing of services to or by,  providing for rental of real
or personal property to or from, or otherwise  requiring payments to or from any
officer,  director or such  employee or, to the  knowledge  of the Company,  any
corporation,  partnership, trust or other entity in which any officer, director,
or any such  employee  has a  substantial  interest or is an officer,  director,
trustee or partner.

     n. Disclosure. All information relating to or concerning the Company or any
of its  Subsidiaries  set  forth in this  Agreement  and  provided  to the Buyer
pursuant  to  Section  2(d)  hereof  and  otherwise  in   connection   with  the
transactions  contemplated  hereby is true and correct in all material  respects
and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein,  in light of the circumstances under
which they were made, not misleading.  No event or circumstance  has occurred or
exists with  respect to the Company or any of its  Subsidiaries  or its or their
business,  properties,  prospects,  operations or financial  conditions,  which,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  by the  Company but which has not been so  publicly  announced  or
disclosed  (assuming for this purpose that the Company's reports filed under the
1934 Act are being incorporated into an effective  registration  statement filed
by the Company under the 1933 Act).

                                       9
<PAGE>
     o.  Acknowledgment  Regarding  Buyer'  Purchase of Securities.  The Company
acknowledges and agrees that the Buyer is acting solely in the capacity of arm's
length   purchasers  with  respect  to  this  Agreement  and  the   transactions
contemplated  hereby.  The Company  further  acknowledges  that the Buyer is not
acting as a  financial  advisor or  fiduciary  of the Company (or in any similar
capacity)  with  respect to this  Agreement  and the  transactions  contemplated
hereby  and  any  statement   made  by  the  Buyer  or  any  of  its  respective
representatives or agents in connection with this Agreement and the transactions
contemplated  hereby is not advice or a recommendation  and is merely incidental
to the Buyer' purchase of the Securities.  The Company further represents to the
Buyer that the  Company's  decision to enter into this  Agreement has been based
solely on the independent evaluation of the Company and its representatives.

     p. No Integrated Offering.  Neither the Company, nor any of its affiliates,
nor any person  acting on its or their behalf,  has directly or indirectly  made
any offers or sales in any security or solicited  any offers to buy any security
under  circumstances  that would require  registration under the 1933 Act of the
issuance of the  Securities to the Buyer.  The issuance of the Securities to the
Buyer will not be integrated with any other issuance of the Company's securities
(past,  current or future) for purposes of any shareholder  approval  provisions
applicable to the Company or its securities.

     q. No Brokers. The Company has taken no action which would give rise to any
claim by any  person  for  brokerage  commissions,  transaction  fees or similar
payments relating to this Agreement or the transactions contemplated hereby.

     r.  Permits;  Compliance.  The Company and each of its  Subsidiaries  is in
possession  of  all  franchises,  grants,  authorizations,   licenses,  permits,
easements, variances, exemptions,  consents, certificates,  approvals and orders
necessary to own,  lease and operate its properties and to carry on its business
as it is now being conducted (collectively, the "Company Permits"), and there is
no action  pending or, to the  knowledge  of the Company,  threatened  regarding
suspension or  cancellation of any of the Company  Permits.  Neither the Company
nor any of its  Subsidiaries is in conflict with, or in default or violation of,
any of  the  Company  Permits,  except  for  any  such  conflicts,  defaults  or
violations  which,  individually  or in the  aggregate,  would not reasonably be
expected to have a Material  Adverse Effect.  Since April 30, 2013,  neither the
Company nor any of its Subsidiaries  has received any notification  with respect
to possible  conflicts,  defaults or violations of applicable  laws,  except for
notices relating to possible conflicts, defaults or violations, which conflicts,
defaults or violations would not have a Material Adverse Effect.

     s. Environmental Matters.

     (i) There are, to the Company's  knowledge,  with respect to the Company or
any of its  Subsidiaries or any  predecessor of the Company,  no past or present
violations of  Environmental  Laws (as defined below),  releases of any material
into the environment,  actions, activities,  circumstances,  conditions, events,
incidents,  or  contractual  obligations  which may give rise to any  common law
environmental  liability or any liability under the Comprehensive  Environmental
Response,  Compensation  and  Liability Act of 1980 or similar  federal,  state,
local or foreign  laws and neither the Company nor any of its  Subsidiaries  has

                                       10
<PAGE>
received  any notice  with  respect to any of the  foregoing,  nor is any action
pending or, to the Company's knowledge, threatened in connection with any of the
foregoing.  The term  "Environmental  Laws" means all federal,  state,  local or
foreign  laws  relating  to  pollution  or  protection  of human  health  or the
environment  (including,   without  limitation,   ambient  air,  surface  water,
groundwater,  land surface or subsurface strata), including, without limitation,
laws  relating to  emissions,  discharges,  releases or  threatened  releases of
chemicals,  pollutants contaminants,  or toxic or hazardous substances or wastes
(collectively,   "Hazardous  Materials")  into  the  environment,  or  otherwise
relating to the manufacture,  processing, distribution, use, treatment, storage,
disposal,  transport  or  handling  of  Hazardous  Materials,  as  well  as  all
authorizations,   codes,  decrees,  demands  or  demand  letters,   injunctions,
judgments,  licenses,  notices  or notice  letters,  orders,  permits,  plans or
regulations issued, entered, promulgated or approved thereunder.

     (ii)  Other  than those that are or were  stored,  used or  disposed  of in
compliance with applicable law, no Hazardous Materials are contained on or about
any real property  currently owned,  leased or used by the Company or any of its
Subsidiaries,  and no  Hazardous  Materials  were  released on or about any real
property  previously  owned,  leased  or  used  by  the  Company  or  any of its
Subsidiaries  during the period the  property  was owned,  leased or used by the
Company or any of its Subsidiaries, except in the normal course of the Company's
or any of its Subsidiaries' business.

     (iii) There are no underground  storage tanks on or under any real property
owned,  leased or used by the Company or any of its Subsidiaries that are not in
compliance with applicable law.

     t.  Title to  Property.  The  Company  and its  Subsidiaries  have good and
marketable  title in fee  simple to all real  property  and good and  marketable
title to all personal  property  owned by them which is material to the business
of the Company and its  Subsidiaries,  in each case free and clear of all liens,
encumbrances  and defects  except such as are described in Schedule 3(t) or such
as would not have a Material  Adverse  Effect.  Any real property and facilities
held under  lease by the  Company  and its  Subsidiaries  are held by them under
valid,  subsisting and enforceable leases with such exceptions as would not have
a Material Adverse Effect.

     u.  Insurance.  The  Company  and each of its  Subsidiaries  are insured by
insurers of recognized  financial  responsibility  against such losses and risks
and in such  amounts as  management  of the  Company  believes to be prudent and
customary  in the  businesses  in which the  Company  and its  Subsidiaries  are
engaged.  Neither the Company nor any such  Subsidiary has any reason to believe
that it will not be able to renew its  existing  insurance  coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may
be  necessary  to continue its business at a cost that would not have a Material
Adverse Effect.  Upon written request the Company will provide to the Buyer true
and  correct  copies  of all  policies  relating  to  directors'  and  officers'
liability  coverage,  errors and  omissions  coverage,  and  commercial  general
liability coverage.

                                       11
<PAGE>
     v. Internal Accounting  Controls.  The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient, in the judgment of
the  Company's  board of directors,  to provide  reasonable  assurance  that (i)
transactions  are executed in accordance with  management's  general or specific
authorizations,   (ii)   transactions   are  recorded  as  necessary  to  permit
preparation  of financial  statements  in  conformity  with  generally  accepted
accounting  principles  and to maintain  asset  accountability,  (iii) access to
assets is permitted  only in accordance  with  management's  general or specific
authorization and (iv) the recorded  accountability  for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

     w.  Foreign  Corrupt  Practices.  Neither  the  Company,  nor  any  of  its
Subsidiaries,  nor any director, officer, agent, employee or other person acting
on behalf of the  Company or any  Subsidiary  has,  in the course of his actions
for, or on behalf of, the  Company,  used any  corporate  funds for any unlawful
contribution,  gift,  entertainment  or  other  unlawful  expenses  relating  to
political activity;  made any direct or indirect unlawful payment to any foreign
or domestic government official or employee from corporate funds; violated or is
in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977,
as amended, or made any bribe, rebate,  payoff,  influence payment,  kickback or
other  unlawful  payment  to any  foreign or  domestic  government  official  or
employee.

     x.  Solvency.   The  Company  (after  giving  effect  to  the  transactions
contemplated by this Agreement) is solvent (i.e.,  its assets have a fair market
value in excess of the amount  required to pay its probable  liabilities  on its
existing  debts as they become  absolute and matured) and  currently the Company
has no  information  that would lead it to reasonably  conclude that the Company
would  not,  after  giving  effect  to  the  transaction  contemplated  by  this
Agreement, have the ability to, nor does it intend to take any action that would
impair its  ability to, pay its debts from time to time  incurred in  connection
therewith as such debts mature.  The Company did not receive a qualified opinion
from its  auditors  with respect to its most recent  fiscal year end and,  after
giving  effect to the  transactions  contemplated  by this  Agreement,  does not
anticipate or know of any basis upon which its auditors  might issue a qualified
opinion in respect of its current fiscal year.

     y. No  Investment  Company.  The Company is not,  and upon the issuance and
sale  of the  Securities  as  contemplated  by  this  Agreement  will  not be an
"investment  company" required to be registered under the Investment Company Act
of  1940  (an  "Investment  Company").  The  Company  is  not  controlled  by an
Investment Company.

     z. Breach of Representations  and Warranties by the Company. If the Company
breaches any of the  representations  or warranties set forth in this Section 3,
and in addition to any other  remedies  available to the Buyer  pursuant to this
Agreement,  it will be  considered  an Event of default under Section 3.4 of the
Note.

     4. COVENANTS.

     a. Best Efforts. The parties shall use their best efforts to satisfy timely
each of the conditions described in Section 6 and 7 of this Agreement.

                                       12
<PAGE>
     b. Form D; Blue Sky Laws.  The Company agrees to file a Form D with respect
to the Securities as required  under  Regulation D and to provide a copy thereof
to the Buyer  promptly after such filing.  The Company  shall,  on or before the
Closing  Date,  take such action as the Company  shall  reasonably  determine is
necessary  to qualify  the  Securities  for sale to the Buyer at the  applicable
closing  pursuant to this Agreement  under  applicable  securities or "blue sky"
laws of the states of the United  States  (or to obtain an  exemption  from such
qualification),  and shall  provide  evidence of any such action so taken to the
Buyer on or prior to the Closing Date.

     c. Use of Proceeds.  The Company shall use the proceeds for general working
capital purposes.

     d. Right of First  Refusal.  Unless it shall have  first  delivered  to the
Buyer,  at least  seventy  two (72) hours  prior to the  closing of such  Future
Offering (as defined  herein),  written notice  describing  the proposed  Future
Offering,  including the terms and  conditions  thereof and proposed  definitive
documentation  to be entered into in  connection  therewith,  and  providing the
Buyer an option  during the seventy two (72) hour period  following  delivery of
such notice to purchase the securities  being offered in the Future  Offering on
the same terms as contemplated by such Future Offering (the limitations referred
to in this sentence and the preceding  sentence are collectively  referred to as
the "Right of First Refusal") (and subject to the exceptions  described  below),
the Company will not conduct any equity financing (including debt with an equity
component) ("Future  Offerings") during the period beginning on the Closing Date
and ending twelve (12) months following the Closing Date. In the event the terms
and  conditions of a proposed  Future  Offering are amended in any respect after
delivery of the notice to the Buyer concerning the proposed Future Offering, the
Company shall deliver a new notice to the Buyer describing the amended terms and
conditions of the proposed Future Offering and the Buyer  thereafter  shall have
an option during the seventy two (72) hour period following delivery of such new
notice to purchase  its pro rata share of the  securities  being  offered on the
same terms as  contemplated by such proposed Future  Offering,  as amended.  The
foregoing  sentence  shall  apply to  successive  amendments  to the  terms  and
conditions of any proposed Future Offering. The Right of First Refusal shall not
apply  to any  transaction  involving  (i)  issuances  of  securities  in a firm
commitment   underwritten  public  offering  (excluding  a  continuous  offering
pursuant  to Rule 415 under the 1933 Act) or (ii)  issuances  of  securities  as
consideration  for  a  merger,  consolidation  or  purchase  of  assets,  or  in
connection with any strategic  partnership or joint venture (the primary purpose
of which is not to raise equity capital),  or in connection with the disposition
or  acquisition of a business,  product or license by the Company.  The Right of
First Refusal also shall not apply to the issuance of  securities  upon exercise
or conversion of the Company's options, warrants or other convertible securities
outstanding  as of the date  hereof or to the  grant of  additional  options  or
warrants,  or the issuance of  additional  securities,  under any Company  stock
option or restricted stock plan approved by the shareholders of the Company.

     e. Expenses. At the Closing, the Company shall reimburse Buyer for expenses
incurred by them in connection  with the  negotiation,  preparation,  execution,
delivery  and  performance  of this  Agreement  and the other  agreements  to be
executed in connection herewith  ("Documents"),  including,  without limitation,

                                       13
<PAGE>
reasonable  attorneys' and consultants' fees and expenses,  transfer agent fees,
fees  for  stock  quotation  services,   fees  relating  to  any  amendments  or
modifications  of the  Documents or any consents or waivers of provisions in the
Documents,  fees for the  preparation  of opinions of counsel,  escrow fees, and
costs of  restructuring  the  transactions  contemplated by the Documents.  When
possible,  the Company must pay these fees directly,  otherwise the Company must
make immediate  payment for reimbursement to the Buyer for all fees and expenses
immediately  upon written notice by the Buyer or the submission of an invoice by
the Buyer.  The  Company's  obligation  with respect to this  transaction  is to
reimburse Buyer' expenses shall be $3,000.

     f. Financial  Information.  Upon written request the Company agrees to send
or make available the following  reports to the Buyer until the Buyer transfers,
assigns,  or sells all of the  Securities:  (i)  within  ten (10) days after the
filing  with the SEC,  a copy of its  Annual  Report on Form 10-K its  Quarterly
Reports on Form 10-Q and any  Current  Reports on Form 8-K;  (ii) within one (1)
day after release,  copies of all press releases issued by the Company or any of
its  Subsidiaries;  and (iii)  contemporaneously  with the making  available  or
giving  to the  shareholders  of the  Company,  copies of any  notices  or other
information the Company makes available or gives to such shareholders.

     g. [INTENTIONALLY DELETED]

     h. Listing. The Company shall promptly secure the listing of the Conversion
Shares upon each national  securities exchange or automated quotation system, if
any,  upon which  shares of Common  Stock are then  listed  (subject to official
notice of issuance) and, so long as the Buyer owns any of the Securities,  shall
maintain,  so long as any other shares of Common Stock shall be so listed,  such
listing of all Conversion  Shares from time to time issuable upon  conversion of
the Note.  The  Company  will  obtain  and, so long as the Buyer owns any of the
Securities, maintain the listing and trading of its Common Stock on the OTCBB or
any equivalent replacement exchange, the Nasdaq National Market ("Nasdaq"),  the
Nasdaq  SmallCap  Market  ("Nasdaq  SmallCap"),  the  New  York  Stock  Exchange
("NYSE"),  or the  American  Stock  Exchange  ("AMEX")  and will  comply  in all
respects with the Company's  reporting,  filing and other  obligations under the
bylaws or rules of the Financial  Industry  Regulatory  Authority  ("FINRA") and
such exchanges,  as applicable.  The Company shall promptly provide to the Buyer
copies of any  notices it  receives  from the OTCBB and any other  exchanges  or
quotation  systems  on which  the  Common  Stock is then  listed  regarding  the
continued  eligibility  of the Common  Stock for listing on such  exchanges  and
quotation systems.

     i. Corporate  Existence.  So long as the Buyer  beneficially owns any Note,
the Company  shall  maintain its  corporate  existence and shall not sell all or
substantially  all of the Company's  assets,  except in the event of a merger or
consolidation or sale of all or substantially all of the Company's assets, where
the surviving or successor  entity in such transaction (i) assumes the Company's
obligations  hereunder and under the agreements and instruments  entered into in
connection herewith and (ii) is a publicly traded corporation whose Common Stock
is listed for trading on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

                                       14
<PAGE>
     j. No  Integration.  The Company  shall not make any offers or sales of any
security  (other than the  Securities)  under  circumstances  that would require
registration  of the Securities  being offered or sold hereunder  under the 1933
Act or cause the  offering of the  Securities  to be  integrated  with any other
offering  of  securities  by the  Company  for the  purpose  of any  stockholder
approval provision applicable to the Company or its securities.

     k. Breach of  Covenants.  If the Company  breaches any of the covenants set
forth in this Section 4, and in addition to any other remedies  available to the
Buyer  pursuant to this  Agreement,  it will be  considered  an event of default
under Section 3.4 of the Note.

     l.  Failure to Comply with the 1934 Act. So long as the Buyer  beneficially
owns the Note, the Company shall comply with the reporting  requirements  of the
1934  Act;  and the  Company  shall  continue  to be  subject  to the  reporting
requirements of the 1934 Act.

     m. Trading  Activities.  Neither the Buyer nor its  affiliates  has an open
short  position  in the common  stock of the Company and the Buyer agree that it
shall not,  and that it will cause its  affiliates  not to,  engage in any short
sales  of or  hedging  transactions  with  respect  to the  common  stock of the
Company.

     5.  Transfer  Agent  Instructions.  The  Company  shall  issue  irrevocable
instructions to its transfer agent to issue certificates, registered in the name
of the  Buyer or its  nominee,  for the  Conversion  Shares in such  amounts  as
specified  from time to time by the Buyer to the Company upon  conversion of the
Note in  accordance  with the terms  thereof (the  "Irrevocable  Transfer  Agent
Instructions").  In the event that the Borrower proposes to replace its transfer
agent,  the  Borrower  shall  provide,  prior  to the  effective  date  of  such
replacement,  a fully executed Irrevocable Transfer Agent Instructions in a form
as initially  delivered  pursuant to the Purchase  Agreement  (including but not
limited to the provision to  irrevocably  reserve  shares of Common Stock in the
Reserved  Amount)  signed by the  successor  transfer  agent to Borrower and the
Borrower.  Prior to registration of the Conversion  Shares under the 1933 Act or
the date on which the Conversion Shares may be sold pursuant to Rule 144 without
any  restriction as to the number of Securities as of a particular date that can
then be  immediately  sold,  all such  certificates  shall bear the  restrictive
legend  specified in Section 2(g) of this Agreement.  The Company warrants that:
(i) no  instruction  other  than the  Irrevocable  Transfer  Agent  Instructions
referred to in this Section 5, and stop transfer  instructions to give effect to
Section 2(f) hereof (in the case of the Conversion Shares, prior to registration
of the Conversion  Shares under the 1933 Act or the date on which the Conversion
Shares may be sold pursuant to Rule 144 without any restriction as to the number
of Securities as of a particular date that can then be immediately  sold),  will
be given by the  Company to its  transfer  agent and that the  Securities  shall
otherwise be freely  transferable on the books and records of the Company as and
to the extent  provided in this Agreement and the Note;  (ii) it will not direct
its transfer agent not to transfer or delay, impair,  and/or hinder its transfer
agent in transferring (or  issuing)(electronically  or in certificated form) any
certificate  for Conversion  Shares to be issued to the Buyer upon conversion of
or  otherwise  pursuant  to the Note as and when  required  by the Note and this
Agreement;  and (iii) it will not fail to remove (or directs its transfer  agent
not to remove or  impairs,  delays,  and/or  hinders  its  transfer  agent  from

                                       15
<PAGE>
removing) any restrictive legend (or to withdraw any stop transfer  instructions
in respect  thereof) on any certificate for any Conversion  Shares issued to the
Buyer upon conversion of or otherwise  pursuant to the Note as and when required
by the Note and this Agreement.  Nothing in this Section shall affect in any way
the Buyer's obligations and agreement set forth in Section 2(g) hereof to comply
with all applicable  prospectus delivery  requirements,  if any, upon re-sale of
the  Securities.  If the Buyer  provides the Company,  at the cost of the Buyer,
with (i) an  opinion  of  counsel in form,  substance  and scope  customary  for
opinions  in  comparable  transactions,  to the  effect  that a  public  sale or
transfer of such Securities may be made without  registration under the 1933 Act
and such sale or  transfer is  effected  or (ii) the Buyer  provides  reasonable
assurances  that the  Securities  can be sold  pursuant to Rule 144, the Company
shall permit the transfer,  and, in the case of the Conversion Shares,  promptly
instruct  its  transfer  agent  to issue  one or more  certificates,  free  from
restrictive  legend, in such name and in such  denominations as specified by the
Buyer. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Buyer, by vitiating the intent and purpose of
the transactions contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for a breach of its  obligations  under this  Section 5 may be
inadequate  and  agrees,  in the event of a breach or  threatened  breach by the
Company of the provisions of this Section,  that the Buyer shall be entitled, in
addition to all other  available  remedies,  to an  injunction  restraining  any
breach and  requiring  immediate  transfer,  without  the  necessity  of showing
economic loss and without any bond or other security being required.

     6.  Conditions to the Company's  Obligation to Sell.  The obligation of the
Company  hereunder  to issue  and sell the Note to the Buyer at the  Closing  is
subject  to the  satisfaction,  at or  before  the  Closing  Date of each of the
following  conditions  thereto,  provided  that  these  conditions  are  for the
Company's  sole benefit and may be waived by the Company at any time in its sole
discretion:

     a. The Buyer shall have executed  this  Agreement and delivered the same to
the Company.

     b. The Buyer shall have  delivered the Purchase  Price in  accordance  with
Section 1(b) above.

     c.  The  representations  and  warranties  of the  Buyer  shall be true and
correct in all material  respects as of the date when made and as of the Closing
Date as though made at that time (except for representations and warranties that
speak as of a specific date), and the Buyer shall have performed,  satisfied and
complied in all material respects with the covenants,  agreements and conditions
required by this  Agreement to be  performed,  satisfied or complied with by the
Buyer at or prior to the Closing Date.

     d. No litigation,  statute,  rule,  regulation,  executive  order,  decree,
ruling or injunction shall have been enacted,  entered,  promulgated or endorsed
by or in any court or  governmental  authority of competent  jurisdiction or any
self-regulatory  organization  having  authority  over the matters  contemplated
hereby which prohibits the consummation of any of the transactions  contemplated
by this Agreement.

                                       16
<PAGE>
     7. Conditions to The Buyer's Obligation to Purchase.  The obligation of the
Buyer  hereunder  to  purchase  the  Note  at  the  Closing  is  subject  to the
satisfaction, at or before the Closing Date of each of the following conditions,
provided  that these  conditions  are for the  Buyer's  sole  benefit and may be
waived by the Buyer at any time in its sole discretion:

     a. The Company shall have executed this Agreement and delivered the same to
the Buyer.

     b. The Company shall have delivered to the Buyer the duly executed Note (in
such  denominations  as the Buyer shall request) in accordance with Section 1(b)
above.

     c. The  Irrevocable  Transfer  Agent  Instructions,  in form and  substance
satisfactory to a  majority-in-interest  of the Buyer, shall have been delivered
to and acknowledged in writing by the Company's Transfer Agent.

     d. The  representations  and  warranties  of the Company  shall be true and
correct in all material  respects as of the date when made and as of the Closing
Date as though made at such time (except for representations and warranties that
speak as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants,  agreements and conditions
required by this  Agreement to be  performed,  satisfied or complied with by the
Company  at or prior to the  Closing  Date.  The Buyer  shall  have  received  a
certificate  or  certificates,  executed by the chief  executive  officer of the
Company,  dated as of the Closing Date,  to the foregoing  effect and as to such
other matters as may be  reasonably  requested by the Buyer  including,  but not
limited  to   certificates   with  respect  to  the  Company's   Certificate  of
Incorporation,  By-laws  and Board of  Directors'  resolutions  relating  to the
transactions contemplated hereby.

     e. No litigation,  statute,  rule,  regulation,  executive  order,  decree,
ruling or injunction shall have been enacted,  entered,  promulgated or endorsed
by or in any court or  governmental  authority of competent  jurisdiction or any
self-regulatory  organization  having  authority  over the matters  contemplated
hereby which prohibits the consummation of any of the transactions  contemplated
by this Agreement.

     f. No event shall have occurred which could  reasonably be expected to have
a Material  Adverse Effect on the Company  including but not limited to a change
in the 1934 Act reporting status of the Company or the failure of the Company to
be timely in its 1934 Act reporting obligations.

     g. The  Conversion  Shares shall have been  authorized for quotation on the
OTCBB and trading in the Common Stock on the OTCBB shall not have been suspended
by the SEC or the OTCBB.

     h. The Buyer shall have  received an  officer's  certificate  described  in
Section 3(c) above, dated as of the Closing Date.

                                       17
<PAGE>
     8. Governing Law; Miscellaneous.

     a.  Governing  Law.  This  Agreement  shall be governed by and construed in
accordance  with the laws of the State of New York without  regard to principles
of  conflicts  of laws.  Any action  brought by either  party  against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state  courts of New York or in the federal  courts  located in the state
and county of Nassau. The parties to this Agreement hereby irrevocably waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not  assert any  defense  based on lack of  jurisdiction  or venue or based upon
FORUM NON CONVENIENS.  The Company and Buyer waive trial by jury. The prevailing
party  shall  be  entitled  to  recover  from the  other  party  its  reasonable
attorney's  fees and costs. In the event that any provision of this Agreement or
any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed
inoperative  to the extent that it may  conflict  therewith  and shall be deemed
modified to conform with such statute or rule of law. Any such  provision  which
may prove invalid or  unenforceable  under any law shall not affect the validity
or  enforceability  of any other  provision of any agreement.  Each party hereby
irrevocably  waives  personal  service of process and consents to process  being
served in any suit,  action or proceeding in connection  with this  Agreement or
any other  Transaction  Document  by mailing a copy  thereof via  registered  or
certified  mail or overnight  delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this  Agreement and agrees that
such service shall constitute good and sufficient  service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law.

     b.   Counterparts.   This   Agreement  may  be  executed  in  one  or  more
counterparts,  each of which shall be deemed an original  but all of which shall
constitute  one  and  the  same  agreement  and  shall  become   effective  when
counterparts have been signed by each party and delivered to the other party.

     c.  Headings.  The  headings  of  this  Agreement  are for  convenience  of
reference only and shall not form part of, or affect the interpretation of, this
Agreement.

     d.  Severability.  In the event that any  provision  of this  Agreement  is
invalid or unenforceable  under any applicable statute or rule of law, then such
provision  shall  be  deemed  inoperative  to the  extent  that it may  conflict
therewith  and shall be deemed  modified to conform with such statute or rule of
law. Any provision hereof which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision hereof.

     e.  Entire  Agreement;  Amendments.  This  Agreement  and  the  instruments
referenced  herein contain the entire  understanding of the parties with respect
to the matters covered herein and therein and, except as specifically  set forth
herein or therein,  neither the Company nor the Buyer makes any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement  may be waived or amended other than by an instrument in writing
signed by the majority in interest of the Buyer.

                                       18
<PAGE>
     f. Notices. All notices, demands, requests, consents,  approvals, and other
communications  required or permitted  hereunder shall be in writing and, unless
otherwise  specified herein,  shall be (i) personally served,  (ii) deposited in
the mail,  registered or certified,  return receipt requested,  postage prepaid,
(iii) delivered by reputable air courier service with charges  prepaid,  or (iv)
transmitted by hand  delivery,  telegram,  or facsimile,  addressed as set forth
below or to such other address as such party shall have  specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed  effective (a) upon hand delivery or delivery by
facsimile,  with accurate confirmation  generated by the transmitting  facsimile
machine,  at the address or number  designated below (if delivered on a business
day during normal  business  hours where such notice is to be received),  or the
first  business  day  following  such  delivery  (if  delivered  other than on a
business day during normal  business  hours where such notice is to be received)
or (b) on the  second  business  day  following  the date of  mailing by express
courier  service,  fully  prepaid,  addressed  to such  address,  or upon actual
receipt of such  mailing,  whichever  shall first occur.  The addresses for such
communications shall be:

     If to the Company, to:
          INDEPENDENCE ENERGY CORP.
          3020 Old Ranch Parkway - Suite 300
          Seal Beach, CA 90740
          Attn: GREGORY C. ROTELLI, Chief Executive Officer
          facsimile: [enter fax number]

     With a copy by fax only to (which copy shall not constitute notice):
          [enter name of law firm]
          Attn: [attorney name]
          [enter address line 1]
          [enter city, state, zip]
          facsimile: [enter fax number]

     If to the Buyer:
          ASHER ENTERPRISES, INC.
          1 Linden Pl., Suite 207
          Great Neck, NY. 11021 Attn: Curt Kramer, President
          facsimile: 516-498-9894

     With a copy by fax only to (which copy shall not constitute notice):
          Naidich Wurman Birnbaum & Maday LLP
          80 Cuttermill Road, Suite 410
          Great Neck, NY 11021
          Attn: Bernard S. Feldman, Esq.
          facsimile: 516-466-3555

     Each  party  shall  provide  notice  to the  other  party of any  change in
address.

                                       19
<PAGE>
     g.  Successors and Assigns.  This Agreement shall be binding upon and inure
to the benefit of the  parties and their  successors  and  assigns.  Neither the
Company nor the Buyer shall assign this  Agreement or any rights or  obligations
hereunder  without the prior written consent of the other.  Notwithstanding  the
foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to
any person that purchases  Securities in a private transaction from the Buyer or
to any of its  "affiliates," as that term is defined under the 1934 Act, without
the consent of the Company.

     h. Third Party Beneficiaries. This Agreement is intended for the benefit of
the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any  provision  hereof be enforced by, any other
person.

     i.  Survival.  The  representations  and  warranties of the Company and the
agreements and covenants set forth in this  Agreement  shall survive the closing
hereunder  notwithstanding  any due diligence  investigation  conducted by or on
behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer
and all their  officers,  directors,  employees  and  agents  for loss or damage
arising as a result of or related to any breach or alleged breach by the Company
of any of its  representations,  warranties  and  covenants  set  forth  in this
Agreement  or  any  of its  covenants  and  obligations  under  this  Agreement,
including advancement of expenses as they are incurred.

     j. Publicity.  The Company,  and the Buyer shall have the right to review a
reasonable  period of time before issuance of any press releases,  SEC, OTCBB or
FINRA filings,  or any other public  statements with respect to the transactions
contemplated  hereby;  provided,  however,  that the Company  shall be entitled,
without the prior approval of the Buyer, to make any press release or SEC, OTCBB
(or other  applicable  trading  market) or FINRA  filings  with  respect to such
transactions  as is required by  applicable  law and  regulations  (although the
Buyer  shall be  consulted  by the  Company  in  connection  with any such press
release  prior to its release and shall be provided  with a copy  thereof and be
given an opportunity to comment thereon).

     k. Further Assurances. Each party shall do and perform, or cause to be done
and performed,  all such further acts and things,  and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

     l. No Strict  Construction.  The language  used in this  Agreement  will be
deemed to be the language  chosen by the parties to express their mutual intent,
and no rules of strict construction will be applied against any party.

     m.  Remedies.  The  Company  acknowledges  that  a  breach  by  it  of  its
obligations  hereunder will cause irreparable harm to the Buyer by vitiating the
intent and purpose of the  transaction  contemplated  hereby.  Accordingly,  the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
under this Agreement will be inadequate and agrees,  in the event of a breach or

                                       20
<PAGE>
threatened  breach by the Company of the provisions of this Agreement,  that the
Buyer shall be entitled,  in addition to all other available  remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or  injunctions  restraining,  preventing or curing any breach of this Agreement
and to  enforce  specifically  the  terms and  provisions  hereof,  without  the
necessity of showing  economic loss and without any bond or other security being
required.

     IN WITNESS WHEREOF,  the undersigned Buyer and the Company have caused this
Agreement to be duly executed as of the date first above written.

INDEPENDENCE ENERGY CORP.

By: /s/ Gregory C. Rotelli
   -----------------------------------
   GREGORY C. ROTELLI
   Chief Executive Officer

ASHER ENTERPRISES, INC.

By: /s/ Curt Kramer
   -----------------------------------
Name:  Curt Kramer
Title: President

1 Linden Pl., Suite 207
Great Neck, NY. 11021

AGGREGATE SUBSCRIPTION AMOUNT

Aggregate Principal Amount of Note:          $57,000.00

Aggregate Purchase Price:                    $57,000.00

                                       21Exhibit 10.3

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES  REPRESENTED BY THIS CERTIFICATE
NOR THE  SECURITIES  INTO  WHICH  THESE  SECURITIES  ARE  CONVERTIBLE  HAVE BEEN
REGISTERED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,  SOLD,  TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE  REGISTRATION  STATEMENT  FOR
THE SECURITIES  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR (B) AN OPINION
OF COUNSEL  (WHICH  COUNSEL  SHALL BE  SELECTED BY THE  HOLDER),  IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD  PURSUANT  TO RULE 144 OR RULE 144A  UNDER  SAID ACT.  NOTWITHSTANDING  THE
FOREGOING,  THE SECURITIES MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

Principal Amount: $57,000.00                           Issue Date: July 15, 2013

Purchase Price: $57,000.00

                          CONVERTIBLE PROMISSORY NOTE

     FOR  VALUE  RECEIVED,  INDEPENDENCE  ENERGY  CORP.,  a  Nevada  corporation
(hereinafter  called the  "Borrower"),  hereby  promises  to pay to the order of
ASHER  ENTERPRISES,  INC., a Delaware  corporation,  or registered  assigns (the
"Holder") the sum of $57,000.00  together with any interest as set forth herein,
on April 17,  2014 (the  "Maturity  Date"),  and to pay  interest  on the unpaid
principal balance hereof at the rate of eight percent (8%) (the "Interest Rate")
per annum from the date hereof (the "Issue Date") until the same becomes due and
payable, whether at maturity or upon acceleration or by prepayment or otherwise.
This Note may not be prepaid in whole or in part except as otherwise  explicitly
set forth herein.  Any amount of principal or interest on this Note which is not
paid when due shall bear  interest at the rate of twenty two  percent  (22%) per
annum from the due date  thereof  until the same is paid  ("Default  Interest").
Interest  shall  commence  accruing  on the date that the Note is fully paid and
shall be computed on the basis of a 365-day  year and the actual  number of days
elapsed.  All payments due hereunder  (to the extent not  converted  into common
stock,  $0.001 par value per share (the "Common  Stock") in accordance  with the
terms hereof) shall be made in lawful money of the United States of America. All
payments shall be made at such address as the Holder shall hereafter give to the
Borrower by written notice made in accordance  with the provisions of this Note.
Whenever any amount  expressed to be due by the terms of this Note is due on any
day which is not a  business  day,  the same  shall  instead  be due on the next
succeeding day which is a business day and, in the case of any interest  payment
date which is not the date on which this Note is paid in full,  the extension of
the due date thereof shall not be taken into account for purposes of determining
the  amount  of  interest  due on such  date.  As used in this  Note,  the  term
"business  day"  shall mean any day other  than a  Saturday,  Sunday or a day on
which  commercial  banks in the city of New  York,  New York are  authorized  or
required by law or executive order to remain closed.  Each capitalized term used
herein,  and not otherwise  defined,  shall have the meaning ascribed thereto in
that certain Securities  Purchase  Agreement dated the date hereof,  pursuant to
which this Note was originally issued (the "Purchase Agreement").
<PAGE>
     This Note is free from all  taxes,  liens,  claims  and  encumbrances  with
respect to the issue  thereof and shall not be subject to  preemptive  rights or
other  similar  rights  of  shareholders  of the  Borrower  and will not  impose
personal liability upon the holder thereof.

     The following terms shall apply to this Note:

ARTICLE I. CONVERSION RIGHTS

     1.1  Conversion  Right.  The Holder shall have the right from time to time,
and at any time  during the period  beginning  on the date which is one  hundred
eighty  (180) days  following  the date of this Note and ending on the later of:
(i) the  Maturity  Date and (ii) the date of payment of the  Default  Amount (as
defined in Article  III)  pursuant  to Section  1.6(a) or Article  III,  each in
respect of the remaining  outstanding  principal  amount of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note into
fully paid and nonassessable shares of Common Stock, as such Common Stock exists
on the Issue Date,  or any shares of capital  stock or other  securities  of the
Borrower into which such Common Stock shall hereafter be changed or reclassified
at the conversion price (the "Conversion  Price")  determined as provided herein
(a  "Conversion");  provided,  however,  that in no event  shall  the  Holder be
entitled to convert  any portion of this Note in excess of that  portion of this
Note  upon  conversion  of which  the sum of (1) the  number of shares of Common
Stock  beneficially owned by the Holder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the
unconverted  portion of the Notes or the  unexercised or unconverted  portion of
any other  security of the Borrower  subject to a limitation  on  conversion  or
exercise  analogous to the limitations  contained  herein) and (2) the number of
shares of Common Stock  issuable upon the conversion of the portion of this Note
with respect to which the  determination  of this  proviso is being made,  would
result in  beneficial  ownership by the Holder and its  affiliates  of more than
9.99% of the outstanding  shares of Common Stock. For purposes of the proviso to
the immediately preceding sentence,  beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the "Exchange  Act"),  and Regulations  13D-G  thereunder,  except as otherwise
provided in clause (1) of such proviso,  provided,  further,  however,  that the
limitations  on conversion  may be waived by the Holder upon, at the election of
the  Holder,  not less  than 61 days'  prior  notice  to the  Borrower,  and the
provisions of the conversion  limitation 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).  The number of shares of Common  Stock to be issued upon
each  conversion  of this Note shall be  determined  by dividing the  Conversion
Amount (as defined below) by the applicable  Conversion  Price then in effect on
the date specified in the notice of conversion,  in the form attached  hereto as
Exhibit A (the "Notice of Conversion"),  delivered to the Borrower by the Holder
in accordance with Section 1.4 below;  provided that the Notice of Conversion is
submitted by facsimile or e-mail (or by other means  resulting in, or reasonably
expected to result in,  notice) to the Borrower  before 6:00 p.m., New York, New
York time on such conversion date (the "Conversion  Date"). The term "Conversion
Amount"  means,  with respect to any conversion of this Note, the sum of (1) the
principal amount of this Note to be converted in such conversion plus (2) at the
Holder's option,  accrued and unpaid interest,  if any, on such principal amount
at the interest rates provided in this Note to the Conversion  Date, plus (3) at
the Holder's option, Default Interest, if any, on the amounts referred to in the
immediately  preceding  clauses (1) and/or (2) plus (4) at the Holder's  option,
any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

                                       2
<PAGE>
     1.2 Conversion Price.

     (a) Calculation of Conversion  Price. The conversion price (the "Conversion
Price") shall equal the Variable  Conversion  Price (as defined herein) (subject
to equitable  adjustments for stock splits,  stock dividends or rights offerings
by the Borrower  relating to the Borrower's  securities or the securities of any
subsidiary of the Borrower, combinations,  recapitalization,  reclassifications,
extraordinary distributions and similar events). The "Variable Conversion Price"
shall mean 58% multiplied by the Market Price (as defined herein)  (representing
a discount  rate of 42%).  "Market  Price" means the average of the lowest three
(3) Trading  Prices (as defined  below) for the Common Stock during the ten (10)
Trading  Day  period  ending on the  latest  complete  Trading  Day prior to the
Conversion  Date.  "Trading  Price" means,  for any security as of any date, the
closing bid price on the Over-the-Counter  Bulletin Board, or applicable trading
market (the  "OTCBB") as reported by a reliable  reporting  service  ("Reporting
Service") designated by the Holder (i.e.  Bloomberg) or, if the OTCBB is not the
principal  trading  market  for such  security,  the  closing  bid price of such
security  on the  principal  securities  exchange or trading  market  where such
security  is listed or traded or, if no closing  bid price of such  security  is
available in any of the foregoing manners, the average of the closing bid prices
of any market  makers for such  security that are listed in the "pink sheets" by
the National  Quotation  Bureau,  Inc. If the Trading Price cannot be calculated
for such security on such date in the manner provided  above,  the Trading Price
shall be the fair market  value as mutually  determined  by the Borrower and the
holders of a majority in interest  of the Notes  being  converted  for which the
calculation  of the  Trading  Price  is  required  in  order  to  determine  the
Conversion  Price of such Notes.  "Trading  Day" shall mean any day on which the
Common  Stock is  tradable  for any  period on the  OTCBB,  or on the  principal
securities exchange or other securities market on which the Common Stock is then
being traded.

     (b) Conversion Price During Major Announcements.  Notwithstanding  anything
contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes
a public  announcement  that it intends to  consolidate  or merge with any other
corporation  (other  than a merger in which the  Borrower  is the  surviving  or
continuing  corporation  and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any person, group
or entity (including the Borrower) publicly announces a tender offer to purchase
50% or more of the Borrower's  Common Stock (or any other takeover  scheme) (the
date of the  announcement  referred  to in  clause  (i) or  (ii) is  hereinafter
referred  to as the  "Announcement  Date"),  then the  Conversion  Price  shall,
effective  upon  the  Announcement  Date and  continuing  through  the  Adjusted
Conversion Price  Termination Date (as defined below),  be equal to the lower of
(x) the  Conversion  Price which  would have been  applicable  for a  Conversion
occurring  on the  Announcement  Date and (y) the  Conversion  Price  that would
otherwise be in effect. From and after the Adjusted Conversion Price Termination
Date,  the  Conversion  Price shall be  determined  as set forth in this Section
1.2(a). For purposes hereof,  "Adjusted Conversion Price Termination Date" shall
mean,  with  respect to any  proposed  transaction  or tender offer (or takeover
scheme) for which a public  announcement  as contemplated by this Section 1.2(b)
has been  made,  the date upon  which the  Borrower  (in the case of clause  (i)
above)  or the  person,  group or  entity  (in the case of  clause  (ii)  above)
consummates or publicly announces the termination or abandonment of the proposed
transaction  or tender  offer (or  takeover  scheme)  which  caused this Section
1.2(b) to become operative.

                                       3
<PAGE>
     1.3 Authorized  Shares.  The Borrower  covenants that during the period the
conversion  right  exists,  the Borrower  will reserve from its  authorized  and
unissued  Common  Stock a  sufficient  number of  shares,  free from  preemptive
rights,  to provide for the issuance of Common Stock upon the full conversion of
this Note issued pursuant to the Purchase Agreement. The Borrower is required at
all times to have  authorized  and reserved five times the number of shares that
is actually  issuable upon full  conversion of the Note (based on the Conversion
Price of the Notes in effect  from time to  time)(the  "Reserved  Amount").  The
Reserved  Amount shall be  increased  from time to time in  accordance  with the
Borrower's  obligations pursuant to Section 4(g) of the Purchase Agreement.  The
Borrower  represents  that upon  issuance,  such shares will be duly and validly
issued, fully paid and non-assessable.  In addition, if the Borrower shall issue
any  securities or make any change to its capital  structure  which would change
the number of shares of Common  Stock into which the Notes shall be  convertible
at the then current  Conversion  Price, the Borrower shall at the same time make
proper provision so that thereafter there shall be a sufficient number of shares
of Common Stock  authorized  and  reserved,  free from  preemptive  rights,  for
conversion of the outstanding  Notes. The Borrower (i) acknowledges  that it has
irrevocably  instructed its transfer agent to issue  certificates for the Common
Stock  issuable upon  conversion of this Note, and (ii) agrees that its issuance
of this Note shall  constitute full authority to its officers and agents who are
charged with the duty of executing  stock  certificates to execute and issue the
necessary  certificates  for shares of Common Stock in accordance with the terms
and conditions of this Note.

     If, at any time the Borrower does not maintain the Reserved  Amount it will
be considered an Event of Default under Section 3.2 of the Note.

     1.4 Method of Conversion.

     (a)  Mechanics  of  Conversion.  Subject to Section  1.1,  this Note may be
converted  by the Holder in whole or in part at any time from time to time after
the Issue Date, by (A)  submitting  to the Borrower a Notice of  Conversion  (by
facsimile,  e-mail or other reasonable means of communication  dispatched on the
Conversion  Date prior to 6:00 p.m., New York, New York time) and (B) subject to
Section 1.4(b), surrendering this Note at the principal office of the Borrower.

     (b)  Surrender  of Note Upon  Conversion.  Notwithstanding  anything to the
contrary set forth herein,  upon  conversion of this Note in accordance with the
terms hereof, the Holder shall not be required to physically surrender this Note
to the Borrower  unless the entire  unpaid  principal  amount of this Note is so
converted.  The Holder and the  Borrower  shall  maintain  records  showing  the
principal  amount so converted  and the dates of such  conversions  or shall use
such other method, reasonably satisfactory to the Holder and the Borrower, so as
not to require physical surrender of this Note upon each such conversion. In the
event of any dispute or discrepancy,  such records of the Borrower shall,  PRIMA
FACIE,  be  controlling  and  determinative  in the absence of  manifest  error.
Notwithstanding  the  foregoing,  if any  portion of this Note is  converted  as
aforesaid,  the  Holder may not  transfer  this Note  unless  the  Holder  first
physically  surrenders  this Note to the  Borrower,  whereupon the Borrower will
forthwith  issue and  deliver  upon the  order of the  Holder a new Note of like
tenor,  registered as the Holder (upon  payment by the Holder of any  applicable
transfer taxes) may request,  representing in the aggregate the remaining unpaid
principal  amount of this Note.  The Holder and any  assignee,  by acceptance of
this Note,  acknowledge  and agree  that,  by reason of the  provisions  of this

                                       4
<PAGE>
paragraph,  following  conversion  of a portion  of this  Note,  the  unpaid and
unconverted  principal  amount of this Note represented by this Note may be less
than the amount stated on the face hereof.

     (c)  Payment of Taxes.  The  Borrower  shall not be required to pay any tax
which may be  payable  in  respect  of any  transfer  involved  in the issue and
delivery of shares of Common Stock or other securities or property on conversion
of this Note in a name other than that of the  Holder (or in street  name),  and
the Borrower  shall not be required to issue or deliver any such shares or other
securities  or property  unless and until the person or persons  (other than the
Holder or the  custodian in whose street name such shares are to be held for the
Holder's  account)  requesting  the  issuance  thereof  shall  have  paid to the
Borrower  the  amount  of  any  such  tax  or  shall  have  established  to  the
satisfaction of the Borrower that such tax has been paid.

     (d) Delivery of Common Stock Upon Conversion.  Upon receipt by the Borrower
from the Holder of a facsimile transmission or e-mail (or other reasonable means
of  communication)  of a Notice  of  Conversion  meeting  the  requirements  for
conversion as provided in this Section 1.4, the Borrower shall issue and deliver
or  cause  to be  issued  and  delivered  to or upon  the  order  of the  Holder
certificates for the Common Stock issuable upon such conversion within three (3)
business days after such receipt (the  "Deadline")  (and,  solely in the case of
conversion of the entire unpaid principal amount hereof, surrender of this Note)
in accordance with the terms hereof and the Purchase Agreement.

     (e)  Obligation of Borrower to Deliver  Common  Stock.  Upon receipt by the
Borrower of a Notice of Conversion,  the Holder shall be deemed to be the holder
of record of the Common Stock  issuable upon such  conversion,  the  outstanding
principal  amount  and the amount of accrued  and unpaid  interest  on this Note
shall be reduced to reflect such conversion,  and, unless the Borrower  defaults
on its obligations  under this Article I, all rights with respect to the portion
of this Note being so converted  shall forthwith  terminate  except the right to
receive the Common Stock or other  securities,  cash or other assets,  as herein
provided,  on such  conversion.  If the  Holder  shall  have  given a Notice  of
Conversion as provided  herein,  the Borrower's  obligation to issue and deliver
the  certificates  for  Common  Stock  shall  be  absolute  and   unconditional,
irrespective of the absence of any action by the Holder to enforce the same, any
waiver or consent with  respect to any  provision  thereof,  the recovery of any
judgment  against any person or any action to enforce  the same,  any failure or
delay in the  enforcement of any other  obligation of the Borrower to the holder
of record, or any setoff, counterclaim,  recoupment,  limitation or termination,
or any breach or alleged breach by the Holder of any obligation to the Borrower,
and  irrespective  of any other  circumstance  which might  otherwise limit such
obligation of the Borrower to the Holder in connection with such conversion. The
Conversion  Date  specified in the Notice of Conversion  shall be the Conversion
Date so long as the Notice of Conversion is received by the Borrower before 6:00
p.m., New York, New York time, on such date.

     (f) Delivery of Common Stock by Electronic Transfer.  In lieu of delivering
physical  certificates  representing  the Common Stock issuable upon conversion,
provided the Borrower is  participating  in the Depository Trust Company ("DTC")
Fast Automated Securities Transfer ("FAST") program,  upon request of the Holder
and its  compliance  with the  provisions  contained  in Section 1.1 and in this
Section 1.4, the Borrower shall use its best efforts to cause its transfer agent
to  electronically  transmit the Common Stock  issuable  upon  conversion to the
Holder by  crediting  the account of Holder's  Prime Broker with DTC through its
Deposit Withdrawal Agent Commission ("DWAC") system.

                                       5
<PAGE>
     (g) Failure to Deliver  Common Stock Prior to Deadline.  Without in any way
limiting the Holder's right to pursue other remedies,  including  actual damages
and/or equitable relief,  the parties agree that if delivery of the Common Stock
issuable upon  conversion  of this Note is not delivered by the Deadline  (other
than a failure due to the  circumstances  described in Section 1.3 above,  which
failure shall be governed by such Section) the Borrower  shall pay to the Holder
$2,000 per day in cash, for each day beyond the Deadline that the Borrower fails
to deliver  such Common  Stock.  Such cash amount shall be paid to Holder by the
fifth day of the month  following  the month in which it has  accrued or, at the
option of the Holder (by written  notice to the Borrower by the first day of the
month  following  the  month  in which  it has  accrued),  shall be added to the
principal  amount of this Note, in which event  interest shall accrue thereon in
accordance  with the terms of this  Note and such  additional  principal  amount
shall be  convertible  into Common  Stock in  accordance  with the terms of this
Note.  The Borrower  agrees that the right to convert is a valuable right to the
Holder. The damages resulting from a failure, attempt to frustrate, interference
with  such  conversion  right  are  difficult  if  not  impossible  to  qualify.
Accordingly  the  parties  acknowledge  that the  liquidated  damages  provision
contained in this Section 1.4(g) are justified.

     1.5  Concerning  the  Shares.  The  shares of Common  Stock  issuable  upon
conversion  of this Note may not be sold or  transferred  unless (i) such shares
are sold pursuant to an effective  registration  statement under the Act or (ii)
the Borrower or its transfer  agent shall have been furnished with an opinion of
counsel  (which  opinion  shall be in form,  substance  and scope  customary for
opinions of counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred  pursuant to an exemption from
such registration or (iii) such shares are sold or transferred  pursuant to Rule
144 under the Act (or a  successor  rule)  ("Rule  144") or (iv) such shares are
transferred  to an  "affiliate"  (as  defined in Rule 144) of the  Borrower  who
agrees to sell or  otherwise  transfer the shares only in  accordance  with this
Section  1.5 and who is an  Accredited  Investor  (as  defined  in the  Purchase
Agreement).  Except as otherwise provided in the Purchase Agreement (and subject
to the removal  provisions  set forth  below),  until such time as the shares of
Common Stock issuable upon  conversion of this Note have been  registered  under
the Act or otherwise may be sold pursuant to Rule 144 without any restriction as
to the number of securities as of a particular date that can then be immediately
sold,  each  certificate  for shares of Common Stock issuable upon conversion of
this Note that has not been so included in an effective  registration  statement
or that has not been sold pursuant to an effective  registration statement or an
exemption that permits removal of the legend,  shall bear a legend substantially
in the following form, as appropriate:

      "NEITHER THE ISSUANCE AND SALE OF THE  SECURITIES  REPRESENTED BY
      THIS  CERTIFICATE NOR THE SECURITIES INTO WHICH THESE  SECURITIES
      ARE EXERCISABLE  HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933,  AS AMENDED,  OR  APPLICABLE  STATE  SECURITIES  LAWS.  THE
      SECURITIES  MAY NOT BE OFFERED  FOR SALE,  SOLD,  TRANSFERRED  OR
      ASSIGNED  (I) IN THE  ABSENCE  OF (A) AN  EFFECTIVE  REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED,  OR (B) AN OPINION OF COUNSEL  (WHICH  COUNSEL  SHALL BE
      SELECTED BY THE HOLDER),  IN A GENERALLY  ACCEPTABLE  FORM,  THAT
      REGISTRATION  IS NOT REQUIRED  UNDER SAID ACT OR (II) UNLESS SOLD
      PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING

                                       6
<PAGE>
      THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A
      BONA FIDE MARGIN  ACCOUNT OR OTHER LOAN OR FINANCING  ARRANGEMENT
      SECURED BY THE SECURITIES."

     The legend set forth above shall be removed and the Borrower shall issue to
the Holder a new  certificate  therefore free of any transfer  legend if (i) the
Borrower or its  transfer  agent shall have  received an opinion of counsel,  in
form,  substance  and scope  customary  for  opinions  of counsel in  comparable
transactions,  to the effect that a public sale or transfer of such Common Stock
may be made without  registration under the Act, which opinion shall be accepted
by the  Company so that the sale or  transfer is effected or (ii) in the case of
the Common  Stock  issuable  upon  conversion  of this Note,  such  security  is
registered  for sale by the Holder  under an  effective  registration  statement
filed under the Act or  otherwise  may be sold  pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date that can then
be  immediately  sold. In the event that the Company does not accept the opinion
of counsel  provided by the Buyer with  respect to the  transfer  of  Securities
pursuant to an exemption from registration, such as Rule 144 or Regulation S, at
the Deadline,  it will be considered an Event of Default pursuant to Section 3.2
of the Note.

     1.6 Effect of Certain Events.

     (a) Effect of Merger, Consolidation,  Etc. At the option of the Holder, the
sale, conveyance or disposition of all or substantially all of the assets of the
Borrower, the effectuation by the Borrower of a transaction or series of related
transactions  in which  more than 50% of the  voting  power of the  Borrower  is
disposed of, or the consolidation,  merger or other business  combination of the
Borrower  with or into any other  Person (as defined  below) or Persons when the
Borrower  is not the  survivor  shall  either:  (i) be  deemed to be an Event of
Default (as defined in Article  III)  pursuant  to which the  Borrower  shall be
required to pay to the Holder  upon the  consummation  of and as a condition  to
such  transaction  an amount equal to the Default  Amount (as defined in Article
III) or (ii) be treated  pursuant to Section 1.6(b) hereof.  "Person" shall mean
any   individual,   corporation,   limited   liability   company,   partnership,
association, trust or other entity or organization.

     (b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this
Note is issued  and  outstanding  and prior to  conversion  of all of the Notes,
there shall be any merger, consolidation,  exchange of shares, recapitalization,
reorganization,  or other similar  event,  as a result of which shares of Common
Stock of the Borrower  shall be changed  into the same or a different  number of
shares of another  class or classes of stock or  securities  of the  Borrower or
another entity, or in case of any sale or conveyance of all or substantially all
of the assets of the Borrower  other than in connection  with a plan of complete
liquidation of the Borrower,  then the Holder of this Note shall thereafter have
the right to receive upon  conversion of this Note,  upon the basis and upon the
terms and conditions  specified herein and in lieu of the shares of Common Stock
immediately  theretofore  issuable upon  conversion,  such stock,  securities or
assets which the Holder would have been entitled to receive in such  transaction
had this Note  been  converted  in full  immediately  prior to such  transaction
(without regard to any  limitations on conversion set forth herein),  and in any
such case  appropriate  provisions  shall be made with respect to the rights and
interests  of the  Holder  of this  Note to the end that the  provisions  hereof
(including,  without  limitation,  provisions  for  adjustment of the Conversion
Price and of the number of shares  issuable  upon  conversion of the Note) shall
thereafter be  applicable,  as nearly as may be  practicable  in relation to any
securities or assets  thereafter  deliverable  upon the conversion  hereof.  The

                                       7
<PAGE>
Borrower  shall not affect any  transaction  described  in this  Section  1.6(b)
unless (a) it first  gives,  to the extent  practicable,  thirty (30) days prior
written  notice  (but in any  event at least  fifteen  (15) days  prior  written
notice) of the record date of the special meeting of shareholders to approve, or
if  there  is  no  such  record  date,   the   consummation   of,  such  merger,
consolidation,  exchange of shares,  recapitalization,  reorganization  or other
similar event or sale of assets  (during which time the Holder shall be entitled
to convert this Note) and (b) the  resulting  successor or acquiring  entity (if
not the Borrower) assumes by written  instrument the obligations of this Section
1.6(b). The above provisions shall similarly apply to successive consolidations,
mergers, sales, transfers or share exchanges.

     (c) Adjustment Due to  Distribution.  If the Borrower shall declare or make
any  distribution  of its assets (or rights to acquire its assets) to holders of
Common  Stock as a dividend,  stock  repurchase,  by way of return of capital or
otherwise (including any dividend or distribution to the Borrower's shareholders
in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e.,  a spin-off)) (a  "Distribution"),  then the Holder of this Note shall be
entitled,  upon  any  conversion  of this  Note  after  the date of  record  for
determining shareholders entitled to such Distribution, to receive the amount of
such  assets  which would have been  payable to the Holder  with  respect to the
shares of Common Stock  issuable upon such  conversion  had such Holder been the
holder of such shares of Common  Stock on the record date for the  determination
of shareholders entitled to such Distribution.

     (d) Adjustment Due to Dilutive Issuance. If, at any time when any Notes are
issued and outstanding, the Borrower issues or sells, or in accordance with this
Section  1.6(d)  hereof is deemed to have  issued or sold,  any shares of Common
Stock for no consideration or for a consideration per share (before deduction of
reasonable  expenses or commissions or  underwriting  discounts or allowances in
connection  therewith)  less than the Conversion  Price in effect on the date of
such  issuance (or deemed  issuance) of such shares of Common Stock (a "Dilutive
Issuance"),  then immediately upon the Dilutive  Issuance,  the Conversion Price
will be reduced to the amount of the  consideration  per share  received  by the
Borrower in such Dilutive Issuance.

     The Borrower  shall be deemed to have issued or sold shares of Common Stock
if the Borrower in any manner issues or grants any  warrants,  rights or options
(not  including  employee  stock  option  plans),  whether  or  not  immediately
exercisable,  to subscribe for or to purchase  Common Stock or other  securities
convertible  into or exchangeable  for Common Stock  ("Convertible  Securities")
(such  warrants,  rights and options to  purchase  Common  Stock or  Convertible
Securities are hereinafter referred to as "Options") and the price per share for
which  Common  Stock is issuable  upon the exercise of such Options is less than
the Conversion Price then in effect, then the Conversion Price shall be equal to
such price per share.  For purposes of the  preceding  sentence,  the "price per
share for which Common Stock is issuable  upon the exercise of such  Options" is
determined by dividing (i) the total amount,  if any,  received or receivable by
the Borrower as consideration  for the issuance or granting of all such Options,
plus the minimum aggregate amount of additional  consideration,  if any, payable
to the Borrower  upon the  exercise of all such  Options,  plus,  in the case of
Convertible  Securities issuable upon the exercise of such Options,  the minimum
aggregate  amount of  additional  consideration  payable upon the  conversion or
exchange  thereof  at  the  time  such   Convertible   Securities  first  become
convertible  or  exchangeable,  by (ii) the  maximum  total  number of shares of
Common  Stock  issuable  upon the exercise of all such  Options  (assuming  full

                                       8
<PAGE>
conversion of Convertible Securities,  if applicable).  No further adjustment to
the Conversion  Price will be made upon the actual issuance of such Common Stock
upon  the  exercise  of such  Options  or upon the  conversion  or  exchange  of
Convertible Securities issuable upon exercise of such Options.

     Additionally, the Borrower shall be deemed to have issued or sold shares of
Common  Stock if the  Borrower  in any  manner  issues or sells any  Convertible
Securities,  whether or not immediately  convertible  (other than where the same
are issuable  upon the  exercise of Options),  and the price per share for which
Common  Stock is  issuable  upon such  conversion  or  exchange is less than the
Conversion  Price then in effect,  then the  Conversion  Price shall be equal to
such price per share. For the purposes of the preceding sentence, the "price per
share for which Common Stock is issuable  upon such  conversion  or exchange" is
determined by dividing (i) the total amount,  if any,  received or receivable by
the Borrower as  consideration  for the issuance or sale of all such Convertible
Securities,  plus the minimum aggregate amount of additional  consideration,  if
any, payable to the Borrower upon the conversion or exchange thereof at the time
such Convertible  Securities first become  convertible or exchangeable,  by (ii)
the maximum total number of shares of Common Stock  issuable upon the conversion
or exchange of all such  Convertible  Securities.  No further  adjustment to the
Conversion Price will be made upon the actual issuance of such Common Stock upon
conversion or exchange of such Convertible Securities.

     (e)  Purchase  Rights.  If,  at any time  when any  Notes  are  issued  and
outstanding,  the  Borrower  issues  any  convertible  securities  or  rights to
purchase stock,  warrants,  securities or other property (the "Purchase Rights")
pro rata to the record holders of any class of Common Stock,  then the Holder of
this  Note will be  entitled  to  acquire,  upon the  terms  applicable  to such
Purchase  Rights,  the  aggregate  Purchase  Rights which such Holder could have
acquired if such Holder had held the number of shares of Common Stock acquirable
upon  complete  conversion of this Note (without  regard to any  limitations  on
conversion  contained herein)  immediately  before the date on which a record is
taken for the grant,  issuance  or sale of such  Purchase  Rights or, if no such
record is taken,  the date as of which the record holders of Common Stock are to
be determined for the grant, issue or sale of such Purchase Rights.

     (f)  Notice of  Adjustments.  Upon the  occurrence  of each  adjustment  or
readjustment of the Conversion Price as a result of the events described in this
Section  1.6,  the  Borrower,  at  its  expense,  shall  promptly  compute  such
adjustment or  readjustment  and prepare and furnish to the Holder a certificate
setting forth such  adjustment or  readjustment  and showing in detail the facts
upon which such adjustment or readjustment  is based.  The Borrower shall,  upon
the  written  request at any time of the  Holder,  furnish to such Holder a like
certificate  setting  forth  (i)  such  adjustment  or  readjustment,  (ii)  the
Conversion  Price at the time in effect and (iii) the number of shares of Common
Stock and the amount,  if any, of other securities or property which at the time
would be received upon conversion of the Note.

     1.7 Trading Market  Limitations.  Unless  permitted by the applicable rules
and regulations of the principal  securities market on which the Common Stock is
then listed or traded,  in no event shall the Borrower issue upon  conversion of
or otherwise  pursuant to this Note and the other Notes  issued  pursuant to the
Purchase  Agreement  more than the maximum number of shares of Common Stock that
the  Borrower  can issue  pursuant to any rule of the  principal  United  States
securities  market on which the Common Stock is then traded (the "Maximum  Share
Amount"),  which shall be 9.99% of the total shares  outstanding  on the Closing
Date (as defined in the Purchase  Agreement),  subject to  equitable  adjustment

                                       9
<PAGE>
from time to time for  stock  splits,  stock  dividends,  combinations,  capital
reorganizations  and similar events relating to the Common Stock occurring after
the date hereof.  Once the Maximum Share Amount has been issued, if the Borrower
fails  to  eliminate  any  prohibitions  under  applicable  law or the  rules or
regulations  of any  stock  exchange,  interdealer  quotation  system  or  other
self-regulatory  organization  with jurisdiction over the Borrower or any of its
securities on the  Borrower's  ability to issue shares of Common Stock in excess
of the Maximum Share Amount,  in lieu of any further right to convert this Note,
this will be considered an Event of Default under Section 3.3 of the Note.

     1.8 Status as  Shareholder.  Upon submission of a Notice of Conversion by a
Holder,  (i) the shares covered  thereby  (other than the shares,  if any, which
cannot be issued  because their  issuance  would exceed such Holder's  allocated
portion  of the  Reserved  Amount  or  Maximum  Share  Amount)  shall be  deemed
converted  into shares of Common Stock and (ii) the Holder's  rights as a Holder
of such converted portion of this Note shall cease and terminate, excepting only
the right to receive  certificates  for such  shares of Common  Stock and to any
remedies  provided  herein or  otherwise  available  at law or in equity to such
Holder  because of a failure by the  Borrower  to comply  with the terms of this
Note.  Notwithstanding the foregoing,  if a Holder has not received certificates
for all shares of Common Stock prior to the tenth (10th)  business day after the
expiration  of the Deadline  with respect to a conversion of any portion of this
Note for any  reason,  then  (unless the Holder  otherwise  elects to retain its
status as a holder of Common  Stock by so  notifying  the  Borrower)  the Holder
shall  regain  the  rights  of a  Holder  of  this  Note  with  respect  to such
unconverted   portions  of  this  Note  and  the  Borrower  shall,  as  soon  as
practicable,  return such unconverted Note to the Holder or, if the Note has not
been  surrendered,  adjust its records to reflect that such portion of this Note
has not been converted.  In all cases, the Holder shall retain all of its rights
and remedies (including, without limitation, (i) the right to receive Conversion
Default Payments pursuant to Section 1.3 to the extent required thereby for such
Conversion  Default and any subsequent  Conversion Default and (ii) the right to
have the Conversion Price with respect to subsequent  conversions  determined in
accordance with Section 1.3) for the Borrower's failure to convert this Note.

     1.9 Prepayment.  Notwithstanding anything to the contrary contained in this
Note,  at any time during the period  beginning  on the Issue Date and ending on
the date which is thirty (30) days  following the issue date, the Borrower shall
have the  right,  exercisable  on not less than  three (3)  Trading  Days  prior
written  notice  to the  Holder  of the  Note to  prepay  the  outstanding  Note
(principal and accrued interest),  in full, in accordance with this Section 1.9.
Any notice of prepayment  hereunder (an "Optional  Prepayment  Notice") shall be
delivered to the Holder of the Note at its registered addresses and shall state:
(1) that the Borrower is  exercising  its right to prepay the Note,  and (2) the
date of prepayment  which shall be not more than three (3) Trading Days from the
date of the Optional  Prepayment  Notice.  On the date fixed for prepayment (the
"Optional  Prepayment  Date"),  the Borrower  shall make payment of the Optional
Prepayment  Amount  (as  defined  below) to or upon the  order of the  Holder as
specified by the Holder in writing to the Borrower at least one (1) business day
prior to the Optional  Prepayment  Date. If the Borrower  exercises its right to
prepay the Note,  the Borrower  shall make payment to the Holder of an amount in
cash (the "Optional Prepayment Amount") equal to 115%, multiplied by the sum of:
(w) the then  outstanding  principal  amount of this Note plus (x)  accrued  and
unpaid  interest  on the unpaid  principal  amount of this Note to the  Optional
Prepayment Date plus (y) Default Interest, if any, on the amounts referred to in
clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections
1.3 and 1.4(g) hereof.  If the Borrower  delivers an Optional  Prepayment Notice
and fails to pay the  Optional  Prepayment  Amount due to the Holder of the Note

                                       10
<PAGE>
within two (2)  business  days  following  the  Optional  Prepayment  Date,  the
Borrower  shall  forever  forfeit its right to prepay the Note  pursuant to this
Section 1.9.

     Notwithstanding  anything to the contrary  contained  in this Note,  at any
time  during the period  beginning  on the date  which is  thirty-one  (31) days
following  the  issue  date and  ending  on the date  which is sixty  (60)  days
following the issue date, the Borrower shall have the right,  exercisable on not
less than three (3) Trading Days prior written  notice to the Holder of the Note
to prepay the  outstanding  Note (principal and accrued  interest),  in full, in
accordance  with this  Section  1.9.  Any  Optional  Prepayment  Notice shall be
delivered to the Holder of the Note at its registered addresses and shall state:
(1) that the Borrower is  exercising  its right to prepay the Note,  and (2) the
date of prepayment  which shall be not more than three (3) Trading Days from the
date of the Optional  Prepayment  Notice.  On the Optional  Prepayment Date, the
Borrower shall make payment of the Second Optional Prepayment Amount (as defined
below) to or upon the order of the Holder as  specified by the Holder in writing
to the Borrower at least one (1)  business day prior to the Optional  Prepayment
Date. If the Borrower exercises its right to prepay the Note, the Borrower shall
make payment to the Holder of an amount in cash (the "Second Optional Prepayment
Amount")  equal  to 120%,  multiplied  by the sum of:  (w) the then  outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal  amount of this Note to the Optional  Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder  pursuant to Sections 1.3 and 1.4(g)  hereof.  If the
Borrower  delivers  an  Optional  Prepayment  Notice and fails to pay the Second
Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional  Prepayment Date, the Borrower shall forever forfeit
its right to prepay the Note pursuant to this Section 1.9.

     Notwithstanding  anything to the contrary  contained  in this Note,  at any
time  during  the period  beginning  on the date  which is  sixty-one  (61) days
following  the  issue  date and  ending on the date  which is  ninety  (90) days
following the issue date, the Borrower shall have the right,  exercisable on not
less than three (3) Trading Days prior written  notice to the Holder of the Note
to prepay the  outstanding  Note (principal and accrued  interest),  in full, in
accordance  with this  Section  1.9.  Any  Optional  Prepayment  Notice shall be
delivered to the Holder of the Note at its registered addresses and shall state:
(1) that the Borrower is  exercising  its right to prepay the Note,  and (2) the
date of prepayment  which shall be not more than three (3) Trading Days from the
date of the Optional  Prepayment  Notice.  On the Optional  Prepayment Date, the
Borrower shall make payment of the Third Optional  Prepayment Amount (as defined
below) to or upon the order of the Holder as  specified by the Holder in writing
to the Borrower at least one (1)  business day prior to the Optional  Prepayment
Date. If the Borrower exercises its right to prepay the Note, the Borrower shall
make payment to the Holder of an amount in cash (the "Third Optional  Prepayment
Amount")  equal  to 125%,  multiplied  by the sum of:  (w) the then  outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal  amount of this Note to the Optional  Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder  pursuant to Sections 1.3 and 1.4(g)  hereof.  If the
Borrower  delivers  an  Optional  Prepayment  Notice  and fails to pay the Third
Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional  Prepayment Date, the Borrower shall forever forfeit
its right to prepay the Note pursuant to this Section 1.9.

     Notwithstanding  any to the contrary stated elsewhere  herein,  at any time
during the period  beginning  on the date that is  ninety-one  (91) day from the

                                       11
<PAGE>
issue date and ending one hundred  twenty (120) days  following  the issue date,
the  Borrower  shall  have the  right,  exercisable  on not less than  three (3)
Trading  Days  prior  written  notice to the  Holder  of the Note to prepay  the
outstanding Note (principal and accrued  interest),  in full, in accordance with
this  Section  1.9.  Any  Optional  Prepayment  Notice shall be delivered to the
Holder of the Note at its  registered  addresses  and shall state:  (1) that the
Borrower  is  exercising  its  right to  prepay  the  Note,  and (2) the date of
prepayment  which shall be not more than three (3) Trading Days from the date of
the Optional  Prepayment  Notice. On the Optional  Prepayment Date, the Borrower
shall make payment of the Fourth Optional  Prepayment  Amount (as defined below)
to or upon the order of the Holder as  specified by the Holder in writing to the
Borrower at least one (1) business day prior to the Optional Prepayment Date. If
the Borrower  exercises  its right to prepay the Note,  the Borrower  shall make
payment  to the  Holder of an amount in cash (the  "Fourth  Optional  Prepayment
Amount")  equal  to 130%,  multiplied  by the sum of:  (w) the then  outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal  amount of this Note to the Optional  Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder  pursuant to Sections 1.3 and 1.4(g)  hereof.  If the
Borrower  delivers  an  Optional  Prepayment  Notice and fails to pay the Fourth
Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional  Prepayment Date, the Borrower shall forever forfeit
its right to prepay the Note pursuant to this Section 1.9.

     Notwithstanding  any to the contrary stated elsewhere  herein,  at any time
during the period beginning on the date that is one hundred twenty-one (121) day
from the issue date and ending one hundred fifty (150) days  following the issue
date, the Borrower shall have the right,  exercisable on not less than three (3)
Trading  Days  prior  written  notice to the  Holder  of the Note to prepay  the
outstanding Note (principal and accrued  interest),  in full, in accordance with
this  Section  1.9.  Any  Optional  Prepayment  Notice shall be delivered to the
Holder of the Note at its  registered  addresses  and shall state:  (1) that the
Borrower  is  exercising  its  right to  prepay  the  Note,  and (2) the date of
prepayment  which shall be not more than three (3) Trading Days from the date of
the Optional  Prepayment  Notice. On the Optional  Prepayment Date, the Borrower
shall make payment of the Fifth Optional Prepayment Amount (as defined below) to
or upon the order of the  Holder as  specified  by the  Holder in writing to the
Borrower at least one (1) business day prior to the Optional Prepayment Date. If
the Borrower  exercises  its right to prepay the Note,  the Borrower  shall make
payment  to the  Holder of an amount in cash  (the  "Fifth  Optional  Prepayment
Amount")  equal  to 135%,  multiplied  by the sum of:  (w) the then  outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal  amount of this Note to the Optional  Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder  pursuant to Sections 1.3 and 1.4(g)  hereof.  If the
Borrower  delivers  an  Optional  Prepayment  Notice  and fails to pay the Fifth
Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional  Prepayment Date, the Borrower shall forever forfeit
its right to prepay the Note pursuant to this Section 1.9.

     Notwithstanding  any to the contrary stated elsewhere  herein,  at any time
during the period beginning on the date that is one hundred  fifty-one (151) day
from the issue date and ending one hundred eighty (180) days following the issue
date, the Borrower shall have the right,  exercisable on not less than three (3)
Trading  Days  prior  written  notice to the  Holder  of the Note to prepay  the
outstanding Note (principal and accrued  interest),  in full, in accordance with
this  Section  1.9.  Any  Optional  Prepayment  Notice shall be delivered to the
Holder of the Note at its  registered  addresses  and shall state:  (1) that the
Borrower  is  exercising  its  right to  prepay  the  Note,  and (2) the date of

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<PAGE>
prepayment  which shall be not more than three (3) Trading Days from the date of
the Optional  Prepayment  Notice. On the Optional  Prepayment Date, the Borrower
shall make payment of the Sixth Optional Prepayment Amount (as defined below) to
or upon the order of the  Holder as  specified  by the  Holder in writing to the
Borrower at least one (1) business day prior to the Optional Prepayment Date. If
the Borrower  exercises  its right to prepay the Note,  the Borrower  shall make
payment  to the  Holder of an amount in cash  (the  "Sixth  Optional  Prepayment
Amount")  equal  to 140%,  multiplied  by the sum of:  (w) the then  outstanding
principal amount of this Note plus (x) accrued and unpaid interest on the unpaid
principal  amount of this Note to the Optional  Prepayment Date plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any
amounts owed to the Holder  pursuant to Sections 1.3 and 1.4(g)  hereof.  If the
Borrower  delivers  an  Optional  Prepayment  Notice  and fails to pay the Sixth
Optional Prepayment Amount due to the Holder of the Note within two (2) business
days following the Optional  Prepayment Date, the Borrower shall forever forfeit
its right to prepay the Note pursuant to this Section 1.9.

     After the expiration of one hundred eighty (180)  following the date of the
Note, the Borrower shall have no right of prepayment.

                         ARTICLE II. CERTAIN COVENANTS

     2.1  Distributions on Capital Stock. So long as the Borrower shall have any
obligation  under this Note, the Borrower shall not without the Holder's written
consent (a) pay,  declare or set apart for such  payment,  any dividend or other
distribution  (whether  in cash,  property  or other  securities)  on  shares of
capital stock other than  dividends on shares of Common Stock solely in the form
of  additional  shares of Common Stock or (b) directly or  indirectly or through
any subsidiary  make any other payment or distribution in respect of its capital
stock except for distributions  pursuant to any shareholders'  rights plan which
is approved by a majority of the Borrower's disinterested directors.

     2.2  Restriction on Stock  Repurchases.  So long as the Borrower shall have
any  obligation  under this Note,  the  Borrower  shall not without the Holder's
written consent redeem,  repurchase or otherwise acquire (whether for cash or in
exchange for property or other  securities or otherwise) in any one  transaction
or series of related transactions any shares of capital stock of the Borrower or
any warrants, rights or options to purchase or acquire any such shares.

     2.3  Borrowings.  So long as the Borrower shall have any  obligation  under
this Note, the Borrower shall not, without the Holder's written consent, create,
incur,  assume guarantee,  endorse,  contingently agree to purchase or otherwise
become  liable upon the  obligation  of any  person,  firm,  partnership,  joint
venture or corporation,  except by the endorsement of negotiable instruments for
deposit or  collection,  or suffer to exist any  liability  for borrowed  money,
except (a)  borrowings in existence or committed on the date hereof and of which
the  Borrower  has  informed  Holder in writing  prior to the date  hereof,  (b)
indebtedness  to trade  creditors  or  financial  institutions  incurred  in the
ordinary  course of business or (c)  borrowings,  the proceeds of which shall be
used to repay this Note.

     2.4 Sale of Assets. So long as the Borrower shall have any obligation under
this Note, the Borrower shall not, without the Holder's  written consent,  sell,
lease or otherwise dispose of any significant  portion of its assets outside the

                                       13
<PAGE>
ordinary course of business. Any consent to the disposition of any assets may be
conditioned on a specified use of the proceeds of disposition.

     2.5 Advances and Loans.  So long as the Borrower  shall have any obligation
under this Note, the Borrower shall not,  without the Holder's  written consent,
lend money,  give credit or make advances to any person,  firm, joint venture or
corporation,  including,  without limitation,  officers,  directors,  employees,
subsidiaries and affiliates of the Borrower,  except loans,  credits or advances
(a) in  existence  or  committed  on the date hereof and which the  Borrower has
informed  Holder in writing  prior to the date hereof,  (b) made in the ordinary
course of business or (c) not in excess of $100,000.

                         ARTICLE III. EVENTS OF DEFAULT

     If any of the  following  events of default  (each,  an "Event of Default")
shall occur:

     3.1 Failure to Pay  Principal  or Interest.  The Borrower  fails to pay the
principal hereof or interest thereon when due on this Note, whether at maturity,
upon acceleration or otherwise.

     3.2 Conversion and the Shares. The Borrower fails to issue shares of Common
Stock to the Holder (or announces or threatens in writing that it will not honor
its obligation to do so) upon exercise by the Holder of the conversion rights of
the Holder in accordance with the terms of this Note, fails to transfer or cause
its transfer agent to transfer (issue)  (electronically or in certificated form)
any  certificate for shares of Common Stock issued to the Holder upon conversion
of or  otherwise  pursuant to this Note as and when  required by this Note,  the
Borrower directs its transfer agent not to transfer or delays,  impairs,  and/or
hinders its transfer agent in transferring  (or issuing)  (electronically  or in
certificated  form) any  certificate  for shares of Common Stock to be issued to
the Holder upon  conversion  of or  otherwise  pursuant to this Note as and when
required by this Note, or fails to remove (or directs its transfer  agent not to
remove or impairs,  delays, and/or hinders its transfer agent from removing) any
restrictive  legend (or to withdraw any stop  transfer  instructions  in respect
thereof) on any  certificate for any shares of Common Stock issued to the Holder
upon  conversion  of or otherwise  pursuant to this Note as and when required by
this Note (or makes any written  announcement,  statement or threat that it does
not intend to honor the  obligations  described in this  paragraph) and any such
failure shall continue uncured (or any written announcement, statement or threat
not to honor its  obligations  shall not be  rescinded in writing) for three (3)
business days after the Holder shall have delivered a Notice of  Conversion.  It
is an obligation  of the Borrower to remain  current in its  obligations  to its
transfer agent. It shall be an event of default of this Note, if a conversion of
this Note is  delayed,  hindered  or  frustrated  due to a  balance  owed by the
Borrower  to its  transfer  agent.  If at the option of the  Holder,  the Holder
advances  any  funds to the  Borrower's  transfer  agent in order to  process  a
conversion,  such  advanced  funds  shall be paid by the  Borrower to the Holder
within forty eight (48) hours of a demand from the Holder.

     3.3 Breach of  Covenants.  The Borrower  breaches any material  covenant or
other  material  term or  condition  contained  in this Note and any  collateral
documents  including  but not limited to the Purchase  Agreement and such breach
continues  for a period of ten (10) days  after  written  notice  thereof to the
Borrower from the Holder.

                                       14
<PAGE>
     3.4  Breach  of  Representations  and  Warranties.  Any  representation  or
warranty  of  the  Borrower  made  herein  or in  any  agreement,  statement  or
certificate  given  in  writing  pursuant  hereto  or  in  connection   herewith
(including,  without  limitation,  the  Purchase  Agreement),  shall be false or
misleading  in any  material  respect  when made and the breach of which has (or
with the passage of time will have) a material  adverse  effect on the rights of
the Holder with respect to this Note or the Purchase Agreement.

     3.5  Receiver or Trustee.  The Borrower or any  subsidiary  of the Borrower
shall make an assignment  for the benefit of creditors,  or apply for or consent
to the appointment of a receiver or trustee for it or for a substantial  part of
its  property or  business,  or such a receiver or trustee  shall  otherwise  be
appointed.

     3.6 Judgments. Any money judgment, writ or similar process shall be entered
or filed  against the Borrower or any  subsidiary  of the Borrower or any of its
property or other  assets for more than  $50,000,  and shall  remain  unvacated,
unbonded or unstayed for a period of twenty (20) days unless otherwise consented
to by the Holder, which consent will not be unreasonably withheld.

     3.7  Bankruptcy.  Bankruptcy,  insolvency,  reorganization  or  liquidation
proceedings or other proceedings, voluntary or involuntary, for relief under any
bankruptcy  law or any law for the relief of debtors  shall be  instituted by or
against the Borrower or any subsidiary of the Borrower.

     3.8  Delisting of Common  Stock.  The  Borrower  shall fail to maintain the
listing  of the  Common  Stock on at  least  one of the  OTCBB or an  equivalent
replacement  exchange,  the Nasdaq National Market,  the Nasdaq SmallCap Market,
the New York Stock Exchange, or the American Stock Exchange.

     3.9 Failure to Comply with the Exchange  Act.  The  Borrower  shall fail to
comply with the reporting  requirements of the Exchange Act; and/or the Borrower
shall cease to be subject to the reporting requirements of the Exchange Act.

     3.10 Liquidation.  Any dissolution,  liquidation, or winding up of Borrower
or any substantial portion of its business.

     3.11  Cessation of  Operations.  Any cessation of operations by Borrower or
Borrower admits it is otherwise  generally unable to pay its debts as such debts
become due, provided,  however, that any disclosure of the Borrower's ability to
continue as a "going concern" shall not be an admission that the Borrower cannot
pay its debts as they become due.

     3.12  Maintenance  of Assets.  The  failure by  Borrower  to  maintain  any
material intellectual property rights,  personal,  real property or other assets
which are necessary to conduct its business (whether now or in the future).

     3.13  Financial  Statement  Restatement.  The  restatement of any financial
statements  filed by the  Borrower  with the SEC for any date or period from two
years  prior to the Issue  Date of this  Note and  until  this Note is no longer
outstanding,  if the result of such  restatement  would,  by  comparison  to the

                                       15
<PAGE>
unrestated  financial  statement,  have constituted a material adverse effect on
the rights of the Holder with respect to this Note or the Purchase Agreement.

     3.14 Reverse Splits. The Borrower effectuates a reverse split of its Common
Stock without twenty (20) days prior written notice to the Holder.

     3.15 Replacement of Transfer Agent. In the event that the Borrower proposes
to replace its  transfer  agent,  the  Borrower  fails to provide,  prior to the
effective date of such replacement,  a fully executed Irrevocable Transfer Agent
Instructions in a form as initially delivered pursuant to the Purchase Agreement
(including  but not limited to the provision to  irrevocably  reserve  shares of
Common Stock in the Reserved  Amount) signed by the successor  transfer agent to
Borrower and the Borrower.

     3.16 Cross-Default.  Notwithstanding  anything to the contrary contained in
this Note or the other  related or companion  documents,  a breach or default by
the Borrower of any covenant or other term or condition  contained in any of the
Other  Agreements,  after the passage of all applicable notice and cure or grace
periods,  shall, at the option of the Holder, be considered a default under this
Note and the Other Agreements,  in which event the Holder shall be entitled (but
in no event  required)  to apply all rights and remedies of the Holder under the
terms of this Note and the Other  Agreements  by reason of a default  under said
Other  Agreement or  hereunder.  "Other  Agreements"  means,  collectively,  all
agreements and instruments between,  among or by: (1) the Borrower,  and, or for
the  benefit  of, (2) the Holder and any  affiliate  of the  Holder,  including,
without  limitation,  promissory  notes;  provided,  however,  the  term  "Other
Agreements"  shall not include the related or companion  documents to this Note.
Each of the loan  transactions  will be  cross-defaulted  with each  other  loan
transaction  and with all other  existing  and future  debt of  Borrower  to the
Holder.

     Upon the  occurrence  and during the  continuation  of any Event of Default
specified in Section 3.1 (solely  with  respect to failure to pay the  principal
hereof or interest thereon when due at the Maturity Date), the Note shall become
immediately  due and payable and the Borrower  shall pay to the Holder,  in full
satisfaction  of its obligations  hereunder,  an amount equal to the Default Sum
(as defined  herein).  UPON THE  OCCURRENCE AND DURING THE  CONTINUATION  OF ANY
EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE
AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER,  IN FULL  SATISFACTION  OF
ITS OBLIGATIONS  HEREUNDER,  AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED
HEREIN);  MULTIPLIED  BY (Z)  TWO  (2).  Upon  the  occurrence  and  during  the
continuation  of any Event of Default  specified  in Sections  3.1 (solely  with
respect to failure to pay the principal  hereof or interest  thereon when due on
this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon
acceleration),  3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12,  3.13,  3.14,  and/or 3. 15
exercisable  through  the  delivery  of written  notice to the  Borrower by such
Holders (the "Default  Notice"),  and upon the occurrence of an Event of Default
specified the remaining  sections of Articles III (other than failure to pay the
principal  hereof or interest  thereon at the Maturity Date specified in Section
3,1 hereof),  the Note shall become immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations  hereunder,  an
amount  equal  to the  greater  of (i)  150%  times  the  sum  of (w)  the  then
outstanding  principal  amount of this Note plus (x) accrued and unpaid interest

                                       16
<PAGE>
on the  unpaid  principal  amount  of this  Note to the  date  of  payment  (the
"Mandatory  Prepayment Date") plus (y) Default Interest,  if any, on the amounts
referred to in clauses  (w) and/or (x) plus (z) any  amounts  owed to the Holder
pursuant  to Sections  1.3 and 1.4(g)  hereof  (the then  outstanding  principal
amount of this  Note to the date of  payment  plus the  amounts  referred  to in
clauses (x), (y) and (z) shall  collectively  be known as the "Default  Sum") or
(ii) the "parity  value" of the Default Sum to be prepaid,  where  parity  value
means (a) the highest number of shares of Common Stock issuable upon  conversion
of or  otherwise  pursuant to such  Default Sum in  accordance  with  Article I,
treating the Trading Day immediately  preceding the Mandatory Prepayment Date as
the  "Conversion  Date"  for  purposes  of  determining  the  lowest  applicable
Conversion  Price,  unless the Default  Event  arises as a result of a breach in
respect of a specific  Conversion  Date in which case such Conversion Date shall
be the  Conversion  Date),  multiplied by (b) the highest  Closing Price for the
Common Stock during the period  beginning on the date of first occurrence of the
Event of Default and ending one day prior to the Mandatory  Prepayment Date (the
"Default  Amount") and all other amounts  payable  hereunder  shall  immediately
become due and payable, all without demand,  presentment or notice, all of which
hereby  are  expressly  waived,  together  with all  costs,  including,  without
limitation,  legal fees and  expenses,  of  collection,  and the Holder shall be
entitled  to  exercise  all other  rights and  remedies  available  at law or in
equity.

     If the Borrower  fails to pay the Default  Amount  within five (5) business
days of written  notice  that such  amount is due and  payable,  then the Holder
shall  have the right at any time,  so long as the  Borrower  remains in default
(and so long and to the extent that there are sufficient  authorized shares), to
require the Borrower,  upon written notice, to immediately issue, in lieu of the
Default  Amount,  the number of shares of Common Stock of the Borrower  equal to
the Default Amount divided by the Conversion Price then in effect.

                           ARTICLE IV. MISCELLANEOUS

     4.1 Failure or  Indulgence  Not Waiver.  No failure or delay on the part of
the Holder in the  exercise of any power,  right or  privilege  hereunder  shall
operate as a waiver  thereof,  nor shall any single or partial  exercise  of any
such power,  right or privilege preclude other or further exercise thereof or of
any other right, power or privileges. All rights and remedies existing hereunder
are  cumulative  to, and not  exclusive  of, any  rights or  remedies  otherwise
available.

     4.2 Notices. All notices, demands, requests, consents, approvals, and other
communications  required or permitted  hereunder shall be in writing and, unless
otherwise  specified herein,  shall be (i) personally served,  (ii) deposited in
the mail,  registered or certified,  return receipt requested,  postage prepaid,
(iii) delivered by reputable air courier service with charges  prepaid,  or (iv)
transmitted by hand  delivery,  telegram,  or facsimile,  addressed as set forth
below or to such other address as such party shall have  specified most recently
by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed  effective (a) upon hand delivery or delivery by
facsimile,  with accurate confirmation  generated by the transmitting  facsimile
machine,  at the address or number  designated below (if delivered on a business
day during normal  business  hours where such notice is to be received),  or the
first  business  day  following  such  delivery  (if  delivered  other than on a
business day during normal  business  hours where such notice is to be received)
or (b) on the  second  business  day  following  the date of  mailing by express
courier  service,  fully  prepaid,  addressed  to such  address,  or upon actual
receipt of such  mailing,  whichever  shall first occur.  The addresses for such
communications shall be:

                                       17
<PAGE>
     If to the Borrower, to:

          INDEPENDENCE ENERGY CORP.
          3020 Old Ranch Parkway - Suite 300
          Seal Beach, CA 90740
          Attn: GREGORY C. ROTELLI, Chief Executive Officer
          facsimile:

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

          [enter name of law firm]
          Attn: [attorney name]
          [enter address line 1]
          [enter city, state, zip]
          facsimile: [enter fax number]

     If to the Holder:

          ASHER ENTERPRISES, INC.
          1 Linden Pl., Suite 207
          Great Neck, NY. 11021
          Attn: Curt Kramer, President
          facsimile: 516-498-9894

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

          Naidich Wurman Birnbaum & Maday, LLP
          80 Cuttermill Road, Suite 410
          Great Neck, NY 11021
          Attn: Bernard S. Feldman, Esq.
          facsimile: 516-466-3555

     4.3 Amendments.  This Note and any provision  hereof may only be amended by
an instrument in writing signed by the Borrower and the Holder.  The term "Note"
and all reference thereto,  as used throughout this instrument,  shall mean this
instrument  (and the other Notes issued  pursuant to the Purchase  Agreement) as
originally executed, or if later amended or supplemented,  then as so amended or
supplemented.

     4.4  Assignability.  This Note shall be binding  upon the  Borrower and its
successors and assigns,  and shall inure to be the benefit of the Holder and its
successors  and assigns.  Each  transferee  of this Note must be an  "accredited
investor" (as defined in Rule 501(a) of the 1933 Act).  Notwithstanding anything
in this  Note to the  contrary,  this  Note  may be  pledged  as  collateral  in
connection with a bona fide margin account or other lending arrangement.

                                       18
<PAGE>
     4.5 Cost of Collection. If default is made in the payment of this Note, the
Borrower shall pay the Holder hereof costs of collection,  including  reasonable
attorneys' fees.

     4.6  Governing  Law.  This  Note  shall be  governed  by and  construed  in
accordance  with the laws of the State of New York without  regard to principles
of  conflicts  of laws.  Any action  brought by either  party  against the other
concerning the  transactions  contemplated by this Note shall be brought only in
the state courts of New York or in the federal  courts  located in the state and
county  of  Nassau.  The  parties  to this  Note  hereby  irrevocably  waive any
objection to jurisdiction and venue of any action instituted hereunder and shall
not  assert any  defense  based on lack of  jurisdiction  or venue or based upon
FORUM  NON  CONVENIENS.  The  Borrower  and  Holder  waive  trial by  jury.  The
prevailing  party  shall be  entitled  to  recover  from  the  other  party  its
reasonable  attorney's  fees and costs.  In the event that any provision of this
Note or any other  agreement  delivered  in  connection  herewith  is invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or  enforceability  of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to
process being served in any suit,  action or proceeding in connection  with this
Agreement  or any other  Transaction  Document  by  mailing a copy  thereof  via
registered or certified  mail or overnight  delivery (with evidence of delivery)
to such party at the  address in effect for  notices to it under this  Agreement
and agrees that such service shall  constitute  good and  sufficient  service of
process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any other manner permitted by law.

     4.7  Certain  Amounts.  Whenever  pursuant  to this  Note the  Borrower  is
required to pay an amount in excess of the outstanding  principal amount (or the
portion  thereof  required  to be paid at that  time)  plus  accrued  and unpaid
interest  plus Default  Interest on such  interest,  the Borrower and the Holder
agree that the actual  damages to the Holder from the receipt of cash payment on
this Note may be  difficult  to  determine  and the  amount to be so paid by the
Borrower  represents  stipulated  damages  and not a penalty  and is intended to
compensate  the Holder in part for loss of the  opportunity to convert this Note
and to earn a return  from the sale of  shares  of Common  Stock  acquired  upon
conversion  of this Note at a price in excess of the price paid for such  shares
pursuant to this Note. The Borrower and the Holder hereby agree that such amount
of stipulated  damages is not plainly  disproportionate  to the possible loss to
the Holder from the receipt of a cash payment without the opportunity to convert
this Note into shares of Common Stock.

     4.8 Purchase  Agreement.  By its acceptance of this Note, each party agrees
to be bound by the applicable terms of the Purchase Agreement.

     4.9 Notice of Corporate  Events.  Except as otherwise  provided below,  the
Holder of this Note shall have no rights as a Holder of Common  Stock unless and
only to the extent that it converts  this Note into Common  Stock.  The Borrower
shall  provide  the  Holder  with  prior  notification  of  any  meeting  of the
Borrower's  shareholders  (and copies of proxy  materials and other  information
sent to shareholders). In the event of any taking by the Borrower of a record of
its shareholders for the purpose of determining shareholders who are entitled to
receive  payment of any dividend or other  distribution,  any right to subscribe
for, purchase or otherwise acquire  (including by way of merger,  consolidation,

                                       19
<PAGE>
reclassification  or  recapitalization)  any  share of any  class  or any  other
securities  or property,  or to receive any other  right,  or for the purpose of
determining  shareholders  who  are  entitled  to vote in  connection  with  any
proposed sale, lease or conveyance of all or substantially  all of the assets of
the  Borrower  or any  proposed  liquidation,  dissolution  or winding up of the
Borrower,  the Borrower shall mail a notice to the Holder,  at least twenty (20)
days prior to the record  date  specified  therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date
on which  any such  record  is to be taken  for the  purpose  of such  dividend,
distribution,  right or other event, and a brief statement  regarding the amount
and character of such dividend, distribution, right or other event to the extent
known at such time. The Borrower shall make a public  announcement  of any event
requiring notification to the Holder hereunder substantially simultaneously with
the notification to the Holder in accordance with the terms of this Section 4.9.

     4.10  Remedies.  The  Borrower  acknowledges  that  a  breach  by it of its
obligations  hereunder will cause  irreparable harm to the Holder,  by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly,  the
Borrower  acknowledges  that the  remedy at law for a breach of its  obligations
under  this  Note will be  inadequate  and  agrees,  in the event of a breach or
threatened  breach by the  Borrower  of the  provisions  of this Note,  that the
Holder shall be entitled,  in addition to all other available remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or injunctions restraining,  preventing or curing any breach of this Note and to
enforce specifically the terms and provisions thereof,  without the necessity of
showing economic loss and without any bond or other security being required.

     IN WITNESS WHEREOF,  Borrower has caused this Note to be signed in its name
by its duly authorized officer this July 15, 2013.

INDEPENDENCE ENERGY CORP.

By: /s/ Gregory C. Rotelli
   --------------------------
   GREGORY C. ROTELLI
   Chief Executive Officer

                                       20
<PAGE>
EXHIBIT A

                              NOTICE OF CONVERSION

The undersigned hereby elects to convert $___________________________  principal
amount of the Note (defined below) into that number of shares of Common Stock to
be issued  pursuant to the conversion of the Note ("Common  Stock") as set forth
below,  of  INDEPENDENCE  ENERGY CORP., a Nevada  corporation  (the  "Borrower")
according to the conditions of the convertible  note of the Borrower dated as of
July 15, 2013 (the "Note"), as of the date written below. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any.

Box Checked as to applicable instructions:

     [ ]  The Borrower shall electronically transmit the Common Stock issuable
          pursuant  to  this  Notice  of   Conversion  to  the  account  of  the
          undersigned  or its nominee  with DTC  through its Deposit  Withdrawal
          Agent Commission system ("DWAC Transfer").

          Name of DTC Prime Broker:
          Account Number:

     [ ]  The   undersigned   hereby  requests  that  the  Borrower  issue  a
          certificate or  certificates  for the number of shares of Common Stock
          set forth below (which  numbers are based on the Holder's  calculation
          attached  hereto) in the name(s)  specified  immediately  below or, if
          additional space is necessary, on an attachment hereto:

          ASHER ENTERPRISES, INC.
          1 Linden Pl., Suite 207
          Great Neck, NY. 11021
          Attention: Certificate Delivery
          (516) 498-9890

Date of Conversion:                                    ____________________
Applicable Conversion Price:                           $___________________
Number of Shares of Common Stock to be Issued
Pursuant to Conversion of the Notes:                   ____________________
Amount of Principal Balance Due remaining
Under the Note after this conversion:                  ____________________

ASHER ENTERPRISES, INC.

By: /s/ Curt Kramer
   -------------------------------------
Name: Curt Kramer
Title: President
Date: _________________
1 Linden Pl., Suite 207
Great Neck, NY. 11021

                                       21

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