Document:

Exhibit 10.1

                          SECURITIES PURCHASE AGREEMENT

     This  Securities  Purchase  Agreement  (this  "Agreement")  is  dated as of
November 7th 2014, between  Independence Energy Corp., a Nevada corporation (the
"Company"),  and each purchaser  identified on the signature pages hereto (each,
including  its  successors  and assigns,  a  "Purchaser"  and  collectively  the
"Purchasers").

     WHEREAS,  subject to the terms and  conditions  set forth in this Agreement
and pursuant to (i) an effective registration statement under the Securities Act
of  1933,  as  amended  (the  "Securities  Act") or (ii) an  exemption  from the
registration  requirements  of  Section 5 of the  Securities  Act  contained  in
Section 4(2) thereof  and/or  Regulation D  thereunder,  the Company  desires to
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase  from the Company,  securities  of the Company as more fully
described in this Agreement.

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

                                    ARTICLE I.
                                   DEFINITIONS

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

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

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

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

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

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

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

     "Closing  Date"  means  the  Trading  Day on which  all of the  Transaction
Documents  have been executed and delivered by the applicable  parties  thereto,
and all  conditions  precedent  to (i) the  Purchasers'  obligations  to pay the
Subscription   Amount  and  (ii)  the  Company's   obligations  to  deliver  the

                                       1
<PAGE>
Securities,  in each case, have been satisfied or waived,  but in no event later
than the third Trading Day following the date hereof.

     "Closing  Statement"  means the  Closing  Statement  in the form on Annex A
attached hereto.

     "Commission" means the United States Securities and Exchange Commission.

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

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

     "Disclosure  Schedules"  means  the  Disclosure  Schedules  of the  Company
delivered concurrently herewith.

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

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

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

     "Exempt  Issuance"  means the  issuance  of (a)  shares of Common  Stock or
options to employees, officers or directors of the Company pursuant to any stock
or option plan duly adopted for such purpose,  by a majority of the non-employee
members of the Board of Directors or a majority of the members of a committee of
non-employee  directors  established  for such purpose,  (b) securities upon the
exercise or exchange of or conversion of any Securities  issued hereunder and/or
other  securities  exercisable or exchangeable for or convertible into shares of
Common Stock issued and outstanding on the date of this Agreement, provided that
such  securities  have not been  amended  since  the date of this  Agreement  to

                                       2
<PAGE>
increase  the number of such  securities  or to  decrease  the  exercise  price,
exchange price or conversion price of such securities, and (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
disinterested  directors of the Company,  provided that any such issuance  shall
only be to a Person (or to the  equityholders  of a Person)  which is, itself or
through  its  subsidiaries,  an  operating  company or an owner of an asset in a
business  synergistic  with the business of the Company and shall provide to the
Company  additional  benefits in addition to the investment of funds,  but shall
not include a transaction in which the Company is issuing  securities  primarily
for the purpose of raising  capital or to an entity  whose  primary  business is
investing in securities.

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

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

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

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

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

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

     "Legend  Removal  Date"  shall have the  meaning  ascribed  to such term in
Section 4.16(c).

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

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

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

     "Per Share Purchase  Price" equals $.0034 per share,  subject to adjustment
for reverse and forward stock splits,  stock dividends,  stock  combinations and
other similar transactions of the Common Stock that occur after the date of this
Agreement.

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

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

                                       3
<PAGE>
     "Proceeding"  means an action,  claim,  suit,  investigation  or proceeding
(including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

     "Prospectus" means the final prospectus filed for a Registration Statement.

     "Prospectus  Supplement"  means the supplement to the Prospectus  complying
with Rule 424(b) of the  Securities  Act that is filed with the  Commission  and
delivered by the Company to each Purchaser at the Closing.

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

     "Registration   Statement"  if  filed  means  the  effective   registration
statement which registers the sale of the Shares to the Purchasers.

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

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

     "Rule 424" means Rule 424  promulgated  by the  Commission  pursuant to the
Securities Act, as such Rule may be amended or interpreted from time to time, or
any  similar  rule or  regulation  hereafter  adopted by the  Commission  having
substantially the same purpose and effect as such Rule.

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

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

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

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

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

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

                                       4
<PAGE>
     "Subsidiary"  means any  subsidiary of the Company as set forth on Schedule
3.1(a),  and shall,  where  applicable,  also  include  any  direct or  indirect
subsidiary of the Company formed or acquired after the date hereof.

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

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

     "Transaction  Documents"  means this Agreement,  the Warrants and any other
documents  or   agreements   executed  in  connection   with  the   transactions
contemplated hereunder.

     "Transfer Agent" means VStock Transfer, LLC 18 Lafayette Place Woodmere, NY
11598 the current  transfer  agent of the Company,  and any  successor  transfer
agent of the Company.

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

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

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

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

                                       5
<PAGE>
                                   ARTICLE II.
                                PURCHASE AND SALE

     2.1  Closing.  On the  Closing  Date,  upon the  terms and  subject  to the
conditions  set forth herein,  substantially  concurrent  with the execution and
delivery of this  Agreement by the parties  hereto,  the Company agrees to sell,
and the  Purchasers,  severally  and not jointly,  agree to  purchase,  up to an
aggregate of $50,000 of Shares and Warrants. Each Purchaser shall deliver to the
Company,  via wire transfer or a certified  check,  immediately  available funds
equal to such Purchaser's Subscription Amount as set forth on the signature page
hereto  executed  by  such  Purchaser  and the  Company  shall  deliver  to each
Purchaser its respective Shares and a Warrant as determined  pursuant to Section
2.2(a),  and the Company and each  Purchaser  shall  deliver the other items set
forth in Section  2.2  deliverable  at the  Closing.  Upon  satisfaction  of the
covenants  and  conditions  set forth in Sections 2.2 and 2.3, the Closing shall
occur at the law offices of O'Gorman and Sandroni  LLC 3350  Greenwood  Blvd St.
Louis Mo. 63143, or such other location as the parties shall mutually agree.

     2.2 Deliveries.

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

          (i) this Agreement duly executed by the Company;

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

          (iii)a copy of the  irrevocable  instructions  to the  Transfer  Agent
     instructing  the Transfer  Agent to deliver on an  expedited  basis via The
     Depository Trust Company Deposit or Withdrawal at Custodian system ("DWAC")
     Shares equal to such  Purchaser's  Subscription  Amount  divided by the Per
     Share Purchase Price, registered in the name of such Purchaser;

          (iv) a Warrant registered in the name of such Purchaser to purchase up
     to a number  of shares of  Common  Stock  equal to 50% of such  Purchaser's
     Shares,  with an  exercise  price  equal to $.005,  subject  to  adjustment
     therein (such  Warrant  certificate  may be delivered  within three Trading
     Days of the Closing Date);

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

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

          (i) this Agreement duly executed by such Purchaser;

          (ii)  the   Registration   Rights  Agreement  duly  executed  by  such
     Purchaser; and

                                       6
<PAGE>
          (iii) such  Purchaser's  Subscription  Amount by wire  transfer to the
     account specified in writing by the Company.

     2.3 Closing Conditions.

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

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

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

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

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

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

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

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

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

          (v) from the date  hereof to the Closing  Date,  trading in the Common
     Stock shall not have been  suspended  by the  Commission  or the  Company's
     principal  Trading  Market,  and,  at any time prior to the  Closing  Date,
     trading in securities  generally as reported by  OTCMarkets  shall not have
     been  suspended  or  limited,   or  minimum  prices  shall  not  have  been
     established on securities whose trades are reported by such service,  or on
     any  Trading  Market,  nor shall a banking  moratorium  have been  declared
     either by the United States or New York State  authorities  nor shall there
     have occurred any material  outbreak or escalation of  hostilities or other
     national or  international  calamity of such magnitude in its effect on, or
     any material  adverse change in, any financial  market which, in each case,
     in the reasonable  judgment of such Purchaser,  makes it  impracticable  or
     inadvisable to purchase the Securities at the Closing.

                                       7
<PAGE>
                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

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

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

     (b)   Organization  and   Qualification.   The  Company  and  each  of  the
Subsidiaries  is an entity duly  incorporated  or otherwise  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation or organization, with the requisite power and authority to own and
use its  properties  and  assets  and to  carry  on its  business  as  currently
conducted. Neither the Company nor any Subsidiary is in violation nor default of
any  of  the   provisions  of  its   respective   certificate   or  articles  of
incorporation,  bylaws or other organizational or charter documents. Each of the
Company and the  Subsidiaries  is duly  qualified to conduct  business and is in
good standing as a foreign  corporation or other entity in each  jurisdiction in
which the nature of the business  conducted  or property  owned by it makes such
qualification necessary,  except where the failure to be so qualified or in good
standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of
any  Transaction  Document,  (ii) a material  adverse  effect on the  results of
operations, assets, business, prospects or condition (financial or otherwise) of
the Company and the Subsidiaries,  taken as a whole, or (iii) a material adverse
effect on the Company's  ability to perform in any material  respect on a timely
basis its obligations under any Transaction Document (any of (i), (ii) or (iii),
a "Material  Adverse  Effect") and no Proceeding has been instituted in any such
jurisdiction  revoking,  limiting or curtailing  or seeking to revoke,  limit or
curtail such power and authority or qualification.

     (c)  Authorization;  Enforcement.  The Company has the requisite  corporate
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by this Agreement and each of the other  Transaction  Documents and
otherwise to carry out its obligations  hereunder and thereunder.  The execution
and delivery of this  Agreement and each of the other  Transaction  Documents by
the Company and the consummation by it of the transactions  contemplated  hereby
and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company, the Board of Directors
or the Company's  stockholders in connection herewith or therewith other than in

                                       8
<PAGE>
connection  with  the  Required   Approvals.   This  Agreement  and  each  other
Transaction Document to which it is a party has been (or upon delivery will have
been) duly  executed by the Company and, when  delivered in accordance  with the
terms hereof and thereof,  will  constitute the valid and binding  obligation of
the Company enforceable against the Company in accordance with its terms, except
(i) as  limited by  general  equitable  principles  and  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  and other laws of general  application
affecting  enforcement of creditors' rights  generally,  (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable  remedies  and  (iii)  insofar  as  indemnification  and  contribution
provisions may be limited by applicable law.

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

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

     (f)  Issuance of the  Securities;  Registration.  The  Securities  are duly
authorized  and,  when  issued and paid for in  accordance  with the  applicable
Transaction  Documents,  will  be  duly  and  validly  issued,  fully  paid  and
nonassessable,  free and clear of all Liens imposed by the Company.  The Warrant

                                       9
<PAGE>
Shares,  when  issued  in  accordance  with the terms of the  Warrants,  will be
validly  issued,  fully  paid and  nonassessable,  free and  clear of all  Liens
imposed by the Company other than  restrictions on transfer  provided for in the
Transaction Documents. The Company has reserved from its duly authorized capital
stock the maximum  number of shares of Common  Stock  issuable  pursuant to this
Agreement and the Warrants.

     (g)  Capitalization.  The  capitalization of the Company is as set forth on
Schedule  3.1(g).  The Company  has not issued any capital  stock since its most
recently  filed  periodic  report under the Exchange Act, other than pursuant to
the exercise of employee  stock options under the Company's  stock option plans,
the issuance of shares of Common Stock to  employees  pursuant to the  Company's
employee stock purchase plans and pursuant to the conversion  and/or exercise of
Common Stock  Equivalents  outstanding as of the date of the most recently filed
periodic  report  under  the  Exchange  Act.  No  Person  has any right of first
refusal,  preemptive  right,  right of  participation,  or any similar  right to
participate  in the  transactions  contemplated  by the  Transaction  Documents.
Except  as a result of the  purchase  and sale of the  Securities,  there are no
outstanding  options,   warrants,   scrip  rights  to  subscribe  to,  calls  or
commitments of any character  whatsoever  relating to, or securities,  rights or
obligations  convertible into or exercisable or exchangeable  for, or giving any
Person any right to subscribe  for or acquire,  any shares of Common  Stock,  or
contracts,  commitments,  understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional shares of Common Stock
or Common Stock  Equivalents.  The issuance and sale of the Securities  will not
obligate the Company to issue shares of Common Stock or other  securities to any
Person (other than the  Purchasers) and will not result in a right of any holder
of Company  securities  to adjust the  exercise,  conversion,  exchange or reset
price under any of such  securities.  All of the  outstanding  shares of capital
stock of the  Company  are  duly  authorized,  validly  issued,  fully  paid and
nonassessable,  have  been  issued  in  compliance  with all  federal  and state
securities laws, and none of such outstanding  shares was issued in violation of
any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder,  the Board of Directors
or others is required for the issuance and sale of the Securities.  There are no
stockholders  agreements,  voting  agreements or other similar  agreements  with
respect to the  Company's  capital  stock to which the Company is a party or, to
the   knowledge  of  the  Company,   between  or  among  any  of  the  Company's
stockholders.

     (h) SEC Reports;  Financial Statements.  The Company has filed all reports,
schedules,  forms,  statements and other  documents  required to be filed by the
Company under the  Securities  Act and the Exchange Act,  including  pursuant to
Section 13(a) or 15(d) thereof,  for the two years preceding the date hereof (or
such  shorter  period as the Company was required by law or  regulation  to file
such  material)  (the foregoing  materials,  including the exhibits  thereto and
documents  incorporated  by reference  therein  being  collectively  referred to
herein as the "SEC Reports") on a timely basis or has received a valid extension
of such  time of  filing  and has  filed  any  such  SEC  Reports  prior  to the
expiration of any such extension.  As of their respective dates, the SEC Reports
complied in all material  respects with the  requirements  of the Securities Act
and the Exchange Act, as  applicable,  and none of the SEC Reports,  when filed,

                                       10
<PAGE>
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated  therein or necessary in order to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading.  The Company has never been an issuer  subject to Rule 144(i)  under
the Securities Act. The financial  statements of the Company included in the SEC
Reports comply in all material respects with applicable accounting  requirements
and the rules and  regulations  of the  Commission  with  respect  thereto as in
effect at the time of filing.  Such financial  statements  have been prepared in
accordance with United States generally accepted  accounting  principles applied
on a consistent  basis during the periods  involved  ("GAAP"),  except as may be
otherwise specified in such financial statements or the notes thereto and except
that unaudited  financial  statements may not contain all footnotes  required by
GAAP, and fairly present in all material respects the financial  position of the
Company and its  consolidated  Subsidiaries  as of and for the dates thereof and
the results of operations and cash flows for the periods then ended, subject, in
the  case  of  unaudited  statements,  to  normal,  immaterial,  year-end  audit
adjustments.

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

     (j) Litigation.  There is no action,  suit,  inquiry,  notice of violation,
proceeding  or  investigation  pending  or,  to the  knowledge  of the  Company,
threatened  against or affecting  the Company,  any  Subsidiary  or any of their
respective  properties  before  or by any  court,  arbitrator,  governmental  or
administrative agency or regulatory authority (federal,  state, county, local or
foreign)  (collectively,  an "Action") which (i) adversely affects or challenges
the legality,  validity or enforceability of any of the Transaction Documents or
the  Securities or (ii) could,  if there were an unfavorable  decision,  have or

                                       11
<PAGE>
reasonably  be  expected  to result in a Material  Adverse  Effect.  Neither the
Company nor any Subsidiary,  nor any director or officer thereof, is or has been
the subject of any Action  involving a claim of violation of or liability  under
federal or state  securities laws or a claim of breach of fiduciary duty.  There
has not been,  and to the  knowledge  of the  Company,  there is not  pending or
contemplated,  any investigation by the Commission  involving the Company or any
current or former  director or officer of the Company.  The  Commission  has not
issued  any stop  order or  other  order  suspending  the  effectiveness  of any
registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

     (k) Labor  Relations.  No labor dispute  exists or, to the knowledge of the
Company, is imminent with respect to any of the employees of the Company,  which
could reasonably be expected to result in a Material Adverse Effect. None of the
Company's or its Subsidiaries'  employees is a member of a union that relates to
such employee's  relationship  with the Company or such Subsidiary,  and neither
the Company nor any of its  Subsidiaries  is a party to a collective  bargaining
agreement, and the Company and its Subsidiaries believe that their relationships
with their  employees are good.  To the  knowledge of the Company,  no executive
officer  of the  Company or any  Subsidiary,  is, or is now  expected  to be, in
violation  of any material  term of any  employment  contract,  confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or
any other  contract or  agreement  or any  restrictive  covenant in favor of any
third party,  and the continued  employment of each such executive  officer does
not subject the Company or any of its Subsidiaries to any liability with respect
to any of the  foregoing  matters.  The  Company  and  its  Subsidiaries  are in
compliance with all U.S. federal,  state, local and foreign laws and regulations
relating  to  employment  and  employment  practices,  terms and  conditions  of
employment  and wages and hours,  except  where the failure to be in  compliance
could not,  individually  or in the aggregate,  reasonably be expected to have a
Material Adverse Effect.

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

     (m)  Regulatory  Permits.  The  Company  and the  Subsidiaries  possess all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state,  local or foreign  regulatory  authorities  necessary  to  conduct  their
respective businesses as described in the SEC Reports,  except where the failure

                                       12
<PAGE>
to possess such permits could not reasonably be expected to result in a Material
Adverse Effect ("Material Permits"),  and neither the Company nor any Subsidiary
has  received  any  notice  of   proceedings   relating  to  the  revocation  or
modification of any Material Permit.

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

     (o) Intellectual  Property.  The Company and the Subsidiaries have, or have
rights  to  use,  all  patents,  patent  applications,   trademarks,   trademark
applications, service marks, trade names, trade secrets, inventions, copyrights,
licenses and other intellectual  property rights and similar rights necessary or
required for use in connection with their respective  businesses as described in
the SEC Reports  and which the failure to so have could have a Material  Adverse
Effect (collectively,  the "Intellectual Property Rights"). None of, and neither
the Company nor any Subsidiary has received a notice (written or otherwise) that
any of,  the  Intellectual  Property  Rights  has  expired,  terminated  or been
abandoned, or is expected to expire or terminate or be abandoned, within two (2)
years from the date of this  Agreement.  Neither the Company nor any  Subsidiary
has received, since the date of the latest audited financial statements included
within  the SEC  Reports,  a  written  notice  of a claim or  otherwise  has any
knowledge  that the  Intellectual  Property  Rights violate or infringe upon the
rights of any Person,  except as could not have or reasonably be expected to not
have a Material  Adverse  Effect.  To the  knowledge  of the  Company,  all such
Intellectual   Property   Rights  are  enforceable  and  there  is  no  existing
infringement by another Person of any of the Intellectual  Property Rights.  The
Company and its Subsidiaries have taken reasonable  security measures to protect
the secrecy,  confidentiality and value of all of their intellectual properties,
except  where  failure to do so could  not,  individually  or in the  aggregate,
reasonably be expected to have a Material Adverse Effect.

     (p)  Insurance.  Neither the Company nor any  Subsidiary  has any reason to
believe  that it will not be able to  secure  insurance  coverage  or to  obtain
coverage from insurers as may be necessary to continue its business.

     (q) Transactions With Affiliates and Employees.  Except as set forth in the
SEC Reports,  none of the officers or directors of the Company or any Subsidiary
and, to the  knowledge of the Company,  none of the  employees of the Company or
any Subsidiary is presently a party to any  transaction  with the Company or any
Subsidiary  (other than for  services as  employees,  officers  and  directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the

                                       13
<PAGE>
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  providing  for the  borrowing  of money from or lending of
money to or otherwise  requiring  payments to or from any  officer,  director or
such  employee  or, to the  knowledge  of the  Company,  any entity in which any
officer,  director,  or any such  employee has a  substantial  interest or is an
officer,  director,  trustee,  stockholder,  member or partner,  in each case in
excess of $120,000  other than for (i) payment of salary or consulting  fees for
services  rendered,  (ii)  reimbursement  for expenses incurred on behalf of the
Company and (iii) other employee  benefits,  including  stock option  agreements
under any stock option plan of the Company.

     (r)  Sarbanes-Oxley;  Internal  Accounting  Controls.  The  Company and the
Subsidiaries  are in compliance with any and all applicable  requirements of the
Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and
all applicable  rules and regulations  promulgated by the Commission  thereunder
that are effective as of the date hereof and as of the Closing Date. The Company
and  the  Subsidiaries   maintain  a  system  of  internal  accounting  controls
sufficient to provide  reasonable  assurance that: (i) transactions are executed
in  accordance  with  management's  general  or  specific  authorizations,  (ii)
transactions  are  recorded as  necessary  to permit  preparation  of  financial
statements in conformity with GAAP and to maintain asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization,  and (iv) the  recorded  accountability  for  assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.  The Company and the Subsidiaries have
established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and the  Subsidiaries and designed such
disclosure  controls and  procedures to ensure that  information  required to be
disclosed  by the Company in the reports it files or submits  under the Exchange
Act is recorded,  processed,  summarized  and reported,  within the time periods
specified in the Commission's rules and forms. The Company's certifying officers
have evaluated the  effectiveness  of the disclosure  controls and procedures of
the Company and the Subsidiaries as of the end of the period covered by the most
recently  filed  periodic   report  under  the  Exchange  Act  (such  date,  the
"Evaluation  Date").  The Company  presented in its most recently filed periodic
report under the Exchange Act the  conclusions of the certifying  officers about
the  effectiveness  of the  disclosure  controls and  procedures  based on their
evaluations as of the Evaluation  Date.  Since the Evaluation  Date,  there have
been no changes in the internal  control over financial  reporting (as such term
is defined in the Exchange  Act) of the Company and its  Subsidiaries  that have
materially affected,  or is reasonably likely to materially affect, the internal
control over financial reporting of the Company and its Subsidiaries.

     (s) Certain Fees. The Purchasers  shall have no obligation  with respect to
any fees or with respect to any claims made by or on behalf of other Persons for
fees of a type  contemplated  in this Section that may be due in connection with
the transactions contemplated by the Transaction Documents.

     (t) Investment Company. The Company is not, and is not an Affiliate of, and
immediately  after receipt of payment for the  Securities,  will not be or be an
Affiliate  of, an  "investment  company"  within the  meaning of the  Investment
Company Act of 1940,  as amended.  The Company  shall  conduct its business in a

                                       14
<PAGE>
manner  so  that  it  will  not  become  an  "investment   company"  subject  to
registration under the Investment Company Act of 1940, as amended.

     (u) Registration Rights.  Other than each of the Purchasers,  no Person has
any right to cause the  Company or any  Subsidiary  to effect  the  registration
under the Securities Act of any securities of the Company or any Subsidiary.

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

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

     (x) Disclosure. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company confirms
that  neither it nor any other  Person  acting on its behalf has provided any of
the Purchasers or their agents or counsel with any information  that it believes
constitutes or might constitute  material,  non-public  information which is not
otherwise  disclosed in the Prospectus  Supplement.  The Company understands and
confirms  that the  Purchasers  will  rely on the  foregoing  representation  in
effecting  transactions  in  securities  of the Company.  All of the  disclosure
furnished by or on behalf of the Company to the Purchasers regarding the Company
and  its  Subsidiaries,   their  respective   businesses  and  the  transactions
contemplated hereby,  including the Disclosure  Schedules to this Agreement,  is
true and correct and does not contain any untrue statement of a material fact or
omit to state any material fact necessary in order to make the  statements  made
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.  The press  releases  disseminated  by the Company during the twelve
months  preceding the date of this Agreement taken as a whole do not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light

                                       15
<PAGE>
of the  circumstances  under which they were made and when made, not misleading.
The  Company  acknowledges  and agrees that no  Purchaser  makes or has made any
representations  or  warranties  with respect to the  transactions  contemplated
hereby other than those specifically set forth in Section 3.2 hereof.

     (y) No  Integrated  Offering.  Assuming  the  accuracy  of the  Purchasers'
representations  and warranties  set forth in Section 3.2,  neither the Company,
nor any of its  Affiliates,  nor any Person  acting on its or their  behalf has,
directly or  indirectly,  made any offers or sales of any  security or solicited
any  offers to buy any  security,  under  circumstances  that  would  cause this
offering of the Securities to be integrated  with prior offerings by the Company
for purposes of any applicable  shareholder  approval  provisions of any Trading
Market on which any of the securities of the Company are listed or designated.

     (z)  Solvency.  The Company has no knowledge of any facts or  circumstances
which lead it to believe  that it will file for  reorganization  or  liquidation
under the bankruptcy or reorganization  laws of any jurisdiction within one year
from the Closing Date.

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

     (bb) Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor
to the  knowledge  of the Company or any  Subsidiary,  any agent or other person
acting  on  behalf  of the  Company  or any  Subsidiary,  has  (i)  directly  or
indirectly,  used any funds for unlawful contributions,  gifts, entertainment or
other unlawful expenses related to foreign or domestic political activity,  (ii)
made any  unlawful  payment to  foreign  or  domestic  government  officials  or
employees  or to any foreign or domestic  political  parties or  campaigns  from
corporate  funds,  (iii) failed to disclose fully any  contribution  made by the
Company or any  Subsidiary  (or made by any person acting on its behalf of which
the Company is aware)  which is in  violation  of law,  or (iv)  violated in any
material respect any provision of FCPA.

     (cc) Accountants.  The Company's accounting firm (i) is a registered public
accounting  firm as  required  by the  Exchange  Act and (ii) shall  express its
opinion with respect to the financial statements to be included in the Company's
Annual Report for the fiscal year ending January 31, 2015.

                                       16
<PAGE>
     (dd)  Acknowledgment  Regarding  Purchasers'  Purchase of  Securities.  The
Company  acknowledges and agrees that each of the Purchasers is acting solely in
the  capacity  of an arm's  length  purchaser  with  respect to the  Transaction
Documents  and  the  transactions  contemplated  thereby.  The  Company  further
acknowledges  that no Purchaser is acting as a financial advisor or fiduciary of
the  Company  (or in any  similar  capacity)  with  respect  to the  Transaction
Documents and the transactions  contemplated thereby and any advice given by any
Purchaser or any of their  respective  representatives  or agents in  connection
with the  Transaction  Documents and the  transactions  contemplated  thereby is
merely  incidental to the Purchasers'  purchase of the  Securities.  The Company
further  represents to each Purchaser that the Company's  decision to enter into
this Agreement and the other Transaction  Documents has been based solely on the
independent  evaluation of the transactions  contemplated  hereby by the Company
and its representatives.

     (ee) Acknowledgement  Regarding  Purchaser's Trading Activity.  Anything in
this Agreement or elsewhere herein to the contrary  notwithstanding  (except for
Sections  3.2(e) and 4.14 hereof),  it is  understood  and  acknowledged  by the
Company that: (i) none of the Purchasers has been asked by the Company to agree,
nor has any Purchaser agreed, to desist from purchasing or selling,  long and/or
short, securities of the Company, or "derivative" securities based on securities
issued by the Company or to hold the  Securities  for any specified  term;  (ii)
past or future open market or other transactions by any Purchaser,  specifically
including, without limitation, Short Sales or "derivative" transactions,  before
or after the  closing  of this or future  private  placement  transactions,  may
negatively impact the market price of the Company's publicly-traded  securities;
(iii) any Purchaser,  and counter-parties in "derivative"  transactions to which
any such  Purchaser is a party,  directly or  indirectly,  presently  may have a
"short"  position  in the Common  Stock,  and (iv) each  Purchaser  shall not be
deemed  to  have  any  affiliation   with  or  control  over  any  arm's  length
counter-party in any "derivative"  transaction.  The Company further understands
and  acknowledges  that  (y)  one or  more  Purchasers  may  engage  in  hedging
activities  at  various  times  during  the  period  that  the   Securities  are
outstanding, including, without limitation, during the periods that the value of
the Warrant Shares  deliverable with respect to Securities are being determined,
and (z) such hedging  activities (if any) could reduce the value of the existing
stockholders'  equity  interests  in the  Company at and after the time that the
hedging  activities  are being  conducted.  The Company  acknowledges  that such
aforementioned  hedging  activities  do not  constitute  a breach  of any of the
Transaction Documents.

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

                                       17
<PAGE>
     (gg) FDA. As to each product  subject to the  jurisdiction of the U.S. Food
and Drug  Administration  ("FDA") under the Federal Food, Drug and Cosmetic Act,
as  amended,  and the  regulations  thereunder  ("FDCA")  that is  manufactured,
packaged, labeled, tested, distributed,  sold, and/or marketed by the Company or
any of its Subsidiaries  (each such product, a "Pharmaceutical  Product"),  such
Pharmaceutical  Product  is  being  manufactured,   packaged,  labeled,  tested,
distributed,  sold  and/or  marketed  by the  Company  in  compliance  with  all
applicable  requirements  under FDCA and  similar  laws,  rules and  regulations
relating to registration,  investigational use, premarket clearance,  licensure,
or  application  approval,   good  manufacturing   practices,   good  laboratory
practices,   good  clinical  practices,   product  listing,   quotas,  labeling,
advertising,  record keeping and filing of reports,  except where the failure to
be in compliance would not have a Material Adverse Effect.  There is no pending,
completed or, to the Company's  knowledge,  threatened,  action  (including  any
lawsuit,  arbitration,  or legal or  administrative  or  regulatory  proceeding,
charge,  complaint,  or  investigation)  against  the  Company  or  any  of  its
Subsidiaries,  and none of the Company or any of its  Subsidiaries  has received
any  notice,  warning  letter or other  communication  from the FDA or any other
governmental  entity,  which (i) contests the  premarket  clearance,  licensure,
registration,   or  approval  of,  the  uses  of,  the   distribution   of,  the
manufacturing  or packaging of, the testing of, the sale of, or the labeling and
promotion  of any  Pharmaceutical  Product,  (ii)  withdraws  its  approval  of,
requests  the  recall,  suspension,  or seizure of, or  withdraws  or orders the
withdrawal  of  advertising  or sales  promotional  materials  relating  to, any
Pharmaceutical   Product,   (iii)  imposes  a  clinical  hold  on  any  clinical
investigation by the Company or any of its Subsidiaries, (iv) enjoins production
at any  facility  of the  Company  or any of its  Subsidiaries,  (v)  enters  or
proposes to enter into a consent decree of permanent injunction with the Company
or any of its Subsidiaries, or (vi) otherwise alleges any violation of any laws,
rules or  regulations  by the  Company  or any of its  Subsidiaries,  and which,
either  individually or in the aggregate,  would have a Material Adverse Effect.
The  properties,  business and operations of the Company have been and are being
conducted in all material respects in accordance with all applicable laws, rules
and  regulations  of the FDA. The Company has not been  informed by the FDA that
the FDA will prohibit the marketing,  sale,  license or use in the United States
of any product proposed to be developed, produced or marketed by the Company nor
has the FDA  expressed any concern as to approving or clearing for marketing any
product being developed or proposed to be developed by the Company.

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

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

     (jj)  Bank  Holding  Company  Act.  Neither  the  Company  nor  any  of its
Subsidiaries  or Affiliates is subject to the Bank Holding  Company Act of 1956,

                                       18
<PAGE>
as amended  (the  "BHCA") and to  regulation  by the Board of  Governors  of the
Federal Reserve System (the "Federal  Reserve").  Neither the Company nor any of
its  Subsidiaries or Affiliates owns or controls,  directly or indirectly,  five
percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five  percent or more of the total equity of a bank or any entity that
is subject to the BHCA and to  regulation  by the Federal  Reserve.  Neither the
Company  nor any of its  Subsidiaries  or  Affiliates  exercises  a  controlling
influence  over the  management  or  policies  of a bank or any  entity  that is
subject to the BHCA and to regulation by the Federal Reserve.

     (kk) Money  Laundering.  The operations of the Company and its Subsidiaries
are and have been conducted at all times in compliance with applicable financial
record-keeping   and  reporting   requirements   of  the  Currency  and  Foreign
Transactions  Reporting Act of 1970,  as amended,  applicable  money  laundering
statutes and applicable  rules and  regulations  thereunder  (collectively,  the
"Money  Laundering  Laws"),  and no action,  suit or proceeding by or before any
court or governmental agency,  authority or body or any arbitrator involving the
Company or any Subsidiary  with respect to the Money  Laundering Laws is pending
or, to the knowledge of the Company or any Subsidiary, threatened.

     (ll)  Private   Placement.   Assuming  the  accuracy  of  the   Purchasers'
representations  and warranties set forth in Section 3.2, no registration  under
the  Securities  Act is  required  for the  offer and sale of the  Warrants  and
Warrant Shares.

     (mm) No General Solicitation.  Neither the Company nor any person acting on
behalf of the Company has offered or sold any of the  Securities  by any form of
general  solicitation  or general  advertising.  Assuming  the  accuracy  of the
Purchasers' representations and warranties set forth in Section 3.2, the Company
has offered the  Securities  for sale only to the  Purchasers  and certain other
"accredited investors" within the meaning of Rule 501 under the Securities Act.

     (nn) Form S-3  Eligibility.  The Company is not  eligible  to register  the
resale of that  number of  Warrant  Shares  permitted  by  Commission  rules and
guidance  for  resale  by the  Purchaser  on  Form  S-3  promulgated  under  the
Securities Act.

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

     (a) Organization;  Authority.  Such Purchaser is either an individual or an
entity duly  incorporation  or formation,  validly existing and in good standing
under the laws of the  jurisdiction of its  incorporation or formation with full
right,  corporate,  partnership,  limited liability company or similar power and
authority to enter into and to consummate the transactions  contemplated by this
Agreement and otherwise to carry out its  obligations  hereunder and thereunder.
The execution and delivery of this  Agreement and  performance by such Purchaser
of the transactions  contemplated by this Agreement have been duly authorized by
all  necessary  corporate,  partnership,  limited  liability  company or similar
action, as applicable,  on the part of such Purchaser. Each Transaction Document
to which it is a party  has  been  duly  executed  by such  Purchaser,  and when
delivered by such Purchaser in accordance with the terms hereof, will constitute

                                       19
<PAGE>
the valid and legally binding obligation of such Purchaser,  enforceable against
it in accordance  with its terms,  except:  (i) as limited by general  equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general  application  affecting  enforcement of creditors'  rights
generally,  (ii) as limited by laws  relating  to the  availability  of specific
performance,  injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable law.

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

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

     (d) Experience of Such Purchaser. Such Purchaser,  either alone or together
with its representatives,  has such knowledge,  sophistication and experience in
business and financial  matters so as to be capable of evaluating the merits and
risks of the prospective investment in the Securities,  and has so evaluated the
merits and risks of such investment. Such Purchaser is able to bear the economic
risk of an  investment  in the  Securities  and, at the present time, is able to
afford a complete loss of such investment.

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

                                       20
<PAGE>
that is a multi-managed  investment  vehicle whereby separate portfolio managers
manage separate portions of such Purchaser's  assets and the portfolio  managers
have no direct  knowledge  of the  investment  decisions  made by the  portfolio
managers managing other portions of such Purchaser's  assets, the representation
set forth above shall only apply with  respect to the portion of assets  managed
by the  portfolio  manager  that made the  investment  decision to purchase  the
Securities covered by this Agreement.  Other than to other Persons party to this
Agreement,  such Purchaser has maintained the confidentiality of all disclosures
made to it in  connection  with this  transaction  (including  the existence and
terms of this  transaction).  Notwithstanding  the  foregoing,  for avoidance of
doubt,  nothing  contained herein shall constitute a representation or warranty,
or preclude any actions,  with respect to the identification of the availability
of, or securing of, available shares to borrow in order to effect Short Sales or
similar transactions in the future.

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

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

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

     4.1 Warrant  Shares.  If all or any portion of a Warrant is  exercised at a
time when there is an effective  registration statement to cover the issuance or
resale of the  Warrant  Shares  or if the  Warrant  is  exercised  via  cashless
exercise,  the Warrant  Shares  issued  pursuant to any such  exercise  shall be
issued  free  of all  legends.  If at any  time  following  the  date  hereof  a
registration statement (or any subsequent registration statement registering the
sale or resale of the  Warrant  Shares)  is not  effective  or is not  otherwise
available  for the sale or resale  of the  Warrant  Shares,  the  Company  shall
immediately notify the holders of the Warrants in writing that such registration
statement  is not then  effective  and  thereafter  shall  promptly  notify such
holders when the registration statement is effective again and available for the
sale or resale of the Warrant  Shares (it being  understood  and agreed that the
foregoing  shall not limit the ability of the Company to issue, or any Purchaser
to sell, any of the Warrant  Shares in compliance  with  applicable  federal and
state securities laws).  Upon a for cash or cashless exercise of a Warrant,  the
holding  period for purposes of Rule 144 shall tack back to the original date of
issuance of such Warrant

     4.2 Furnishing of Information; Public Information.

     (a) Until the earliest of the time that (i) no Purchaser owns Securities or
(ii) the Warrants have expired,  the Company covenants to timely file (or obtain
extensions in respect  thereof and file within the applicable  grace period) all

                                       21
<PAGE>
reports  required to be filed by the Company  after the date hereof  pursuant to
the  Exchange  Act even if the  Company  is not then  subject  to the  reporting
requirements of the Exchange Act.

     (b) At any  time  during  the  period  commencing  from  the six (6)  month
anniversary  of the date hereof and ending at such time that all of the Warrants
and Warrant Shares may be sold without the  requirement for the Company to be in
compliance with Rule 144(c)(1) and otherwise  without  restriction or limitation
pursuant to Rule 144,  if the  Company  shall fail for any reason to satisfy the
current  public  information  requirement  under Rule 144(c) and a  registration
statement  covering  the  resale  of the  Warrants  Shares  is not at such  time
effective (a "Public Information Failure") then, in addition to such Purchaser's
other  available  remedies,  the Company  shall pay to a Purchaser,  in cash, as
partial liquidated damages and not as a penalty,  by reason of any such delay in
or reduction of its ability to sell the Warrants or Warrant Shares, an amount in
cash  equal  to two  percent  (2.0%)  of the  aggregate  Exercise  Price of such
Purchaser's  Warrants  on the day of a Public  Information  Failure and on every
thirtieth  (30th) day (pro rated for periods  totaling  less than  thirty  days)
thereafter until the earlier of (a) the date such Public Information  Failure is
cured and (b) such time that such public  information is no longer  required for
the Purchasers to transfer the Warrant Shares pursuant to Rule 144. The payments
to which a Purchaser  shall be  entitled  pursuant  to this  Section  4.2(b) are
referred to herein as "Public  Information Failure Payments." Public Information
Failure  Payments  shall  be paid on the  earlier  of (i)  the  last  day of the
calendar  month  during  which such  Public  Information  Failure  Payments  are
incurred and (ii) the third (3rd) Business Day after the event or failure giving
rise to the  Public  Information  Failure  Payments  is cured.  In the event the
Company fails to make Public  Information  Failure  Payments in a timely manner,
such Public Information Failure Payments shall bear interest at the rate of 1.5%
per month (prorated for partial months) until paid in full. Nothing herein shall
limit such Purchaser's right to pursue actual damages for the Public Information
Failure,  and such  Purchaser  shall  have  the  right to  pursue  all  remedies
available to it at law or in equity including,  without limitation,  a decree of
specific performance and/or injunctive relief.

     4.3  Integration.  The  Company  shall not sell,  offer for sale or solicit
offers to buy or  otherwise  negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the  Securities  for  purposes  of the rules and  regulations  of any Trading
Market such that it would require  shareholder  approval prior to the closing of
such other  transaction  unless  shareholder  approval  is  obtained  before the
closing of such subsequent transaction.

     4.4 Securities Laws Disclosure; Publicity. The Company may (a) by 9:00 a.m.
(New York City time) on the fourth  Trading Day  immediately  following the date
hereof,  issue a press release disclosing the material terms of the transactions
contemplated  hereby,  and (b) file a Current Report on Form 8-K,  including the
Transaction  Documents as exhibits thereto,  with the Commission within the time
required by the Exchange Act. From and after the issuance of such press release,
the Company  represents to the Purchasers that it shall have publicly  disclosed
all material,  non-public  information delivered to any of the Purchasers by the
Company  or any of its  Subsidiaries,  or  any  of  their  respective  officers,
directors,  employees or agents in connection with the transactions contemplated
by the Transaction Documents.  The Company and each Purchaser shall consult with

                                       22
<PAGE>
each other in issuing any other press releases with respect to the  transactions
contemplated  hereby,  and neither the Company nor any Purchaser shall issue any
such press  release nor  otherwise  make any such public  statement  without the
prior  consent  of the  Company,  with  respect  to  any  press  release  of any
Purchaser,  or without the prior consent of each Purchaser,  with respect to any
press release of the Company,  which consent shall not  unreasonably be withheld
or  delayed,  except if such  disclosure  is  required by law, in which case the
disclosing  party shall  promptly  provide the other party with prior  notice of
such public  statement or  communication.  Notwithstanding  the  foregoing,  the
Company shall not publicly  disclose the name of any  Purchaser,  or include the
name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market,  without the prior written consent of such Purchaser,  except
(a) as required by federal securities law in connection with the filing of final
Transaction  Documents with the Commission and (b) to the extent such disclosure
is  required  by law or Trading  Market  regulations,  in which case the Company
shall  provide the  Purchasers  with prior notice of such  disclosure  permitted
under this clause (b).

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

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

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

     4.8  Indemnification  of  Purchasers.  Subject  to the  provisions  of this
Section  4.8,  the  Company  will  indemnify  and hold  each  Purchaser  and its
directors, officers, shareholders,  members, partners, employees and agents (and
any other Persons with a functionally  equivalent  role of a Person holding such
titles notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser  (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers,  shareholders,
agents,   members,   partners  or  employees  (and  any  other  Persons  with  a
functionally  equivalent role of a Person holding such titles  notwithstanding a
lack of such title or any other  title) of such  controlling  persons  (each,  a

                                       23
<PAGE>
"Purchaser Party") harmless from any and all losses,  liabilities,  obligations,
claims,  contingencies,  damages,  costs and expenses,  including all judgments,
amounts paid in  settlements,  court costs and  reasonable  attorneys'  fees and
costs of  investigation  that any such Purchaser  Party may suffer or incur as a
result  of or  relating  to (a)  any  breach  of  any  of  the  representations,
warranties,  covenants or agreements made by the Company in this Agreement or in
the  other  Transaction  Documents  or (b) any  action  instituted  against  the
Purchaser  Parties  in  any  capacity,  or  any  of  them  or  their  respective
Affiliates,  by any  stockholder  of the Company who is not an Affiliate of such
Purchaser  Party,  with respect to any of the  transactions  contemplated by the
Transaction  Documents  (unless  such  action  is based  upon a  breach  of such
Purchaser Party's representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with
any such  stockholder  or any  violations  by such  Purchaser  Party of state or
federal securities laws or any conduct by such Purchaser Party which constitutes
fraud, gross negligence, willful misconduct or malfeasance). If any action shall
be brought  against any  Purchaser  Party in respect of which  indemnity  may be
sought  pursuant to this  Agreement,  such Purchaser Party shall promptly notify
the  Company  in  writing,  and the  Company  shall have the right to assume the
defense  thereof with counsel of its own choosing  reasonably  acceptable to the
Purchaser  Party.  Any Purchaser  Party shall have the right to employ  separate
counsel in any such action and participate in the defense thereof,  but the fees
and expenses of such  counsel  shall be at the expense of such  Purchaser  Party
except to the  extent  that (i) the  employment  thereof  has been  specifically
authorized  by the  Company in  writing,  (ii) the  Company  has failed  after a
reasonable  period of time to assume such defense and to employ counsel or (iii)
in such  action  there is, in the  reasonable  opinion  of  counsel,  a material
conflict  on any  material  issue  between  the  position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible
for the reasonable fees and expenses of no more than one such separate  counsel.
The Company will not be liable to any Purchaser  Party under this  Agreement (y)
for any  settlement by a Purchaser  Party effected  without the Company's  prior
written consent,  which shall not be unreasonably withheld or delayed; or (z) to
the extent,  but only to the extent that a loss,  claim,  damage or liability is
attributable  to any  Purchaser  Party's  breach of any of the  representations,
warranties,  covenants  or  agreements  made by  such  Purchaser  Party  in this
Agreement or in the other Transaction Documents. The indemnification required by
this Section 4.8 shall be made by periodic payments of the amount thereof during
the course of the  investigation  or defense,  as and when bills are received or
are incurred.  The indemnity agreements contained herein shall be in addition to
any cause of action or similar right of any Purchaser  Party against the Company
or others and any liabilities the Company may be subject to pursuant to law.

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

     4.10 Listing of Common Stock. The Company hereby agrees to use best efforts
to maintain the listing or  quotation of the Common Stock on the Trading  Market
on which it is currently listed, and concurrently with the Closing,  the Company
shall  apply to list or quote  all of the  Shares  and  Warrant  Shares  on such
Trading Market and promptly  secure the listing of all of the Shares and Warrant
Shares on such  Trading  Market.  The  Company  further  agrees,  if the Company

                                       24
<PAGE>
applies to have the Common Stock  traded on any other  Trading  Market,  it will
then include in such application all of the Shares and Warrant Shares,  and will
take such other  action as is  necessary  to cause all of the Shares and Warrant
Shares  to be  listed or quoted on such  other  Trading  Market as  promptly  as
possible. The Company will then take all action reasonably necessary to continue
the listing and trading of its Common Stock on a Trading  Market and will comply
in all respects with the Company's reporting, filing and other obligations under
the bylaws or rules of the Trading Market.

     4.11 [Reserved]

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

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

                                       25
<PAGE>
     4.14 Capital  Changes.  Until the one year anniversary of the Closing Date,
the  Company   shall  not   undertake  a  reverse  or  forward  stock  split  or
reclassification  of the Common Stock without the prior  written  consent of the
Purchasers holding a majority in interest of the Shares.

     4.15 Transfer Restrictions.

     (a) The  Securities  may only be disposed of in  compliance  with state and
federal  securities laws. In connection with any transfer of Warrants or Warrant
Shares other than pursuant to an effective  registration  statement or Rule 144,
to the Company or to an Affiliate of a Purchaser or in connection  with a pledge
as  contemplated  in Section  4.16(b),  the Company  may require the  transferor
thereof  to  provide to the  Company  an  opinion  of  counsel  selected  by the
transferor and reasonably  acceptable to the Company,  the form and substance of
which  opinion shall be reasonably  satisfactory  to the Company,  to the effect
that such transfer does not require registration of such transferred  Securities
under the Securities Act. As a condition of transfer,  any such transferee shall
agree in writing to be bound by the terms of this Agreement and the Registration
Rights  Agreement and shall have the rights and obligations of a Purchaser under
this Agreement and the Registration Rights Agreement.

     (b) The Purchasers agree to the imprinting,  so long as is required by this
Section  4.16,  of a legend  on any of the  Warrants  or  Warrant  Shares in the
following form:

     NEITHER  THIS  SECURITY  NOR THE  SECURITIES  INTO WHICH THIS  SECURITY  IS
     EXERCISABLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
     OR THE  SECURITIES  COMMISSION  OF ANY STATE IN RELIANCE  UPON AN EXEMPTION
     FROM  REGISTRATION  UNDER  THE  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE
     "SECURITIES  ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED OR SOLD  EXCEPT
     PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
     PURSUANT TO AN AVAILABLE  EXEMPTION  FROM, OR IN A TRANSACTION  NOT SUBJECT
     TO, THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
     WITH  APPLICABLE  STATE  SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
     COUNSEL TO THE  TRANSFEROR TO SUCH EFFECT,  THE SUBSTANCE OF WHICH SHALL BE
     REASONABLY  ACCEPTABLE TO THE COMPANY.  THIS  SECURITY [AND THE  SECURITIES
     ISSUABLE UPON EXERCISE OF THIS SECURITY] MAY BE PLEDGED IN CONNECTION  WITH
     A BONA FIDE MARGIN  ACCOUNT WITH A REGISTERED  BROKER-DEALER  OR OTHER LOAN
     WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN
     RULE  501(a)  UNDER  THE  SECURITIES  ACT OR  OTHER  LOAN  SECURED  BY SUCH
     SECURITIES.

     The Company  acknowledges and agrees that a Purchaser may from time to time
pledge pursuant to a bona fide margin agreement with a registered  broker-dealer
or grant a security  interest  in some or all of the  Securities  to a financial
institution that is an "accredited investor" as defined in Rule 501(a) under the
Securities  Act and who agrees to be bound by the  provisions of this  Agreement
and the  Registration  Rights Agreement and, if required under the terms of such

                                       26
<PAGE>
arrangement,  such Purchaser may transfer  pledged or secured  Securities to the
pledgees or secured  parties.  Such a pledge or transfer would not be subject to
approval of the Company and no legal  opinion of legal  counsel of the  pledgee,
secured party or pledgor shall be required in connection therewith.  Further, no
notice shall be required of such pledge. At the appropriate Purchaser's expense,
the Company will execute and deliver such reasonable  documentation as a pledgee
or secured  party of Securities  may  reasonably  request in  connection  with a
pledge or transfer of the Securities,  including,  if the Securities are subject
to registration  pursuant to the Registration Rights Agreement,  the preparation
and filing of any required prospectus  supplement under Rule 424(b)(3) under the
Securities  Act  or  other  applicable   provision  of  the  Securities  Act  to
appropriately  amend  the  list  of  Selling  Stockholders  (as  defined  in the
Registration Rights Agreement) thereunder.

     (c) Certificates evidencing the Warrant Shares shall not contain any legend
(including  the  legend  set  forth in  Section  4.16(b)  hereof):  (i)  while a
registration  statement  covering the resale of such security is effective under
the Securities  Act, (ii) following any sale of such Warrant Shares  pursuant to
Rule 144 and delivery by Purchaser of customary representation letters regarding
Rule 144  compliance  and a copy of Form 144 filed by  Purchaser,  (iii) if such
Warrant Shares are eligible for sale under Rule 144 without the  requirement for
the Company to be in compliance with the current public information requirements
of Rule 144 as to such  Warrant  Shares  and  without  volume or  manner-of-sale
restrictions  thereunder,  and  Purchaser  delivers a  customary  representation
letter or (iv) if such legend is not required under  applicable  requirements of
the Securities Act (including judicial interpretations and pronouncements issued
by the staff of the Commission).  The Company shall cause its counsel to issue a
legal opinion to the Transfer  Agent  promptly if required by the Transfer Agent
to effect the  removal of the legend  hereunder.  If any portion of a Warrant is
exercised at a time when there is an effective  registration  statement to cover
the resale of the Warrant  Shares,  or if such Warrant  Shares may be sold under
Rule 144 without the  requirement  for the Company to be in compliance  with the
current public  information  requirements  of Rule 144 as to such Warrant Shares
and without volume or manner-of-sale  restrictions  thereunder or if such legend
is not otherwise  required under  applicable  requirements of the Securities Act
(including judicial  interpretations  and pronouncements  issued by the staff of
the  Commission)  then such  Warrant  Shares shall be issued free of all legends
after the Company has received a customary representation letter from Purchaser.
The Company  agrees that  following the  Effective  Date or at such time as such
legend is no longer required under this Section 4.16(c),  it will, no later than
three  Trading Days  following the delivery by a Purchaser to the Company or the
Transfer  Agent of a certificate  representing  Warrant  Shares,  as applicable,
issued with a restrictive legend together with a customary representation letter
and, if  applicable,  a copy of the filed Form 144 (such third  Trading Day, the
"Legend  Removal  Date"),  deliver or cause to be delivered to such  Purchaser a
certificate representing such shares that is free from all restrictive and other
legends.  The  Company  may  not  make  any  notation  on its  records  or  give
instructions to the Transfer Agent that enlarge the restrictions on transfer set
forth in this  Section 4.  Certificates  for  Warrant  Shares  subject to legend
removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by
crediting the account of the Purchaser's  prime broker with the Depository Trust
Company System as directed by such Purchaser.

                                       27
<PAGE>
     (d) In addition to such Purchaser's other available  remedies,  the Company
shall pay to a Purchaser,  in cash, as partial  liquidated  damages and not as a
penalty,  for each  $1,000 of  Warrant  Shares  (based on the VWAP of the Common
Stock on the date such  Warrant  Shares are  submitted  to the  Transfer  Agent)
delivered for removal of the restrictive  legend and subject to Section 4.16(c),
$10 per Trading Day for each Trading Day after the second  Trading Day following
the Legend Removal Date until such  certificate  is delivered  without a legend.
Nothing herein shall limit such  Purchaser's  right to pursue actual damages for
the Company's  failure to deliver  certificates  representing  any Securities as
required by the Transaction  Documents,  and such Purchaser shall have the right
to pursue all remedies  available to it at law or in equity  including,  without
limitation, a decree of specific performance and/or injunctive relief.

     (e) Each  Purchaser,  severally and not jointly with the other  Purchasers,
agrees with the Company that such Purchaser will sell any Securities pursuant to
either the  registration  requirements  of the  Securities  Act,  including  any
applicable prospectus delivery requirements, or an exemption therefrom, and that
if Securities are sold pursuant to a registration  statement,  they will be sold
in compliance with the plan of distribution set forth therein,  and acknowledges
that the  removal  of the  restrictive  legend  from  certificates  representing
Securities  as set forth in this Section 4.16 is  predicated  upon the Company's
reliance upon this understanding.

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

     4.17 Exercise  Procedures.  The form of Notice of Exercise  included in the
Warrants set forth the totality of the procedures  required of the Purchasers in
order to exercise the Warrants.  No additional legal opinion,  other information
or instructions  shall be required of the Purchasers to exercise their Warrants.
Without  limiting the preceding  sentences,  no ink-original  Notice of Exercise
shall be required, nor shall any medallion guarantee (or other type of guarantee
or notarization) of any Notice of Exercise form be required in order to exercise
the  Warrants.  The Company  shall honor  exercises  of the  Warrants  and shall
deliver Warrant Shares in accordance with the terms, conditions and time periods
set forth in the Transaction Documents.

                                    ARTICLE V.
                                  MISCELLANEOUS

     5.1 Termination.  This Agreement may be terminated by any Purchaser,  as to
such Purchaser's obligations hereunder only and without any effect whatsoever on
the obligations between the Company and the other Purchasers,  by written notice
to the other  parties,  if the  Closing  has not been  consummated  on or before
October 31st, 2014; provided,  however, that no such termination will affect the
right of any party to sue for any breach by any other party (or parties).

                                       28
<PAGE>
     5.2 Fees and Expenses.  The Company shall deliver to each Purchaser,  prior
to the Closing, a completed and executed copy of the Closing  Statement.  Except
as expressly set forth in the Transaction Documents to the contrary,  each party
shall pay the fees and expenses of its advisers, counsel,  accountants and other
experts,  if any, and all other expenses  incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement.
The  Company  shall pay all Escrow  fees and  Transfer  Agent  fees  (including,
without limitation, any fees required for same-day processing of any instruction
letter  delivered  by  the  Company  and  any  exercise  notice  delivered  by a
Purchaser), stamp taxes and other taxes and duties levied in connection with the
delivery of any Securities to the Purchasers.

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

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

     5.5  Amendments;  Waivers.  No provision of this  Agreement  may be waived,
modified,  supplemented or amended except in a written instrument signed, in the
case of an amendment,  by the Company and the Purchasers holding at least 67% in
interest of the Shares based on the initial  Subscription  Amounts hereunder or,
in the case of a  waiver,  by the party  against  whom  enforcement  of any such
waived  provision  is  sought.  No waiver of any  default  with  respect  to any
provision,  condition or requirement  of this Agreement  shall be deemed to be a
continuing  waiver  in the  future or a waiver of any  subsequent  default  or a
waiver of any other provision,  condition or requirement  hereof,  nor shall any
delay or  omission of any party to exercise  any right  hereunder  in any manner
impair the exercise of any such right.

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

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

                                       29
<PAGE>
transferee  agrees in  writing  to be bound,  with  respect  to the  transferred
Securities,  by the  provisions of the  Transaction  Documents that apply to the
"Purchasers."

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

     5.9 Governing  Law. All questions  concerning the  construction,  validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each
party  agrees  that  all  legal  proceedings   concerning  the  interpretations,
enforcement and defense of the  transactions  contemplated by this Agreement and
any other Transaction  Documents  (whether brought against a party hereto or its
respective affiliates,  directors,  officers,  shareholders,  partners, members,
employees  or agents)  shall be commenced  exclusively  in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive  jurisdiction  of the state and federal courts sitting in the City
of New York,  Borough of Manhattan for the adjudication of any dispute hereunder
or in  connection  herewith  or with  any  transaction  contemplated  hereby  or
discussed  herein  (including  with  respect  to the  enforcement  of any of the
Transaction Documents),  and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding,  any claim that it is not personally  subject
to the jurisdiction of any such court,  that such suit,  action or proceeding is
improper or is an  inconvenient  venue for such  proceeding.  Each party  hereby
irrevocably  waives  personal  service of process and consents to process  being
served in any such suit,  action or  proceeding  by mailing a copy  thereof  via
registered or certified  mail or overnight  delivery (with evidence of delivery)
to such party at the  address in effect for  notices to it under this  Agreement
and agrees that such service shall  constitute  good and  sufficient  service of
process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve  process in any other  manner  permitted  by law.  If
either  party  shall  commence  an action,  suit or  proceeding  to enforce  any
provisions of the Transaction Documents, then, in addition to the obligations of
the Company  under  Section 4.8, the  prevailing  party in such action,  suit or
proceeding shall be reimbursed by the other party for its reasonable  attorneys'
fees and other costs and expenses incurred with the  investigation,  preparation
and prosecution of such action or proceeding.

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

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

                                       30
<PAGE>
     5.12 Severability.  If any term, provision, covenant or restriction of this
Agreement is held by a court of competent  jurisdiction to be invalid,  illegal,
void or  unenforceable,  the remainder of the terms,  provisions,  covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected,  impaired or  invalidated,  and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

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

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

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

     5.16 Payment Set Aside.  To the extent that the Company  makes a payment or
payments to any Purchaser  pursuant to any  Transaction  Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such  enforcement  or exercise or any part thereof are  subsequently
invalidated,  declared to be fraudulent or  preferential,  set aside,  recovered
from, disgorged by or are required to be refunded,  repaid or otherwise restored
to the  Company,  a  trustee,  receiver  or  any  other  Person  under  any  law

                                       31
<PAGE>
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable  cause of action),  then to the extent of any such  restoration
the  obligation  or part thereof  originally  intended to be satisfied  shall be
revived and  continued  in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

     5.17  Independent  Nature  of  Purchasers'   Obligations  and  Rights.  The
obligations of each Purchaser under any Transaction Document are several and not
joint with the  obligations of any other  Purchaser,  and no Purchaser  shall be
responsible in any way for the performance or non-performance of the obligations
of any other Purchaser under any Transaction Document.  Nothing contained herein
or in any  other  Transaction  Document,  and no action  taken by any  Purchaser
pursuant  hereto or thereto,  shall be deemed to constitute  the Purchasers as a
partnership,  an  association,  a joint venture or any other kind of entity,  or
create a presumption  that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the
Transaction Documents. Each Purchaser shall be entitled to independently protect
and enforce its rights including,  without limitation, the rights arising out of
this Agreement or out of the other  Transaction  Documents,  and it shall not be
necessary  for any other  Purchaser to be joined as an  additional  party in any
proceeding  for such purpose.  Each  Purchaser has been  represented  by its own
separate  legal  counsel  in its  review  and  negotiation  of  the  Transaction
Documents The Company has elected to provide all Purchasers  with the same terms
and Transaction  Documents for the convenience of the Company and not because it
was  required or requested  to do so by any of the  Purchasers.  It is expressly
understood  and agreed that each  provision  contained in this  Agreement and in
each other Transaction Document is between the Company and a Purchaser,  solely,
and not between the Company and the Purchasers  collectively and not between and
among the Purchasers.

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

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

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

                                       32
<PAGE>
     5.21  WAIVER OF JURY TRIAL.  IN ANY  ACTION,  SUIT,  OR  PROCEEDING  IN ANY
JURISDICTION  BROUGHT BY ANY PARTY  AGAINST ANY OTHER  PARTY,  THE PARTIES  EACH
KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW,
HEREBY  ABSOLUTELY,  UNCONDITIONALLY,  IRREVOCABLY AND EXPRESSLY  WAIVES FOREVER
TRIAL BY JURY.

                            (Signature Pages Follow)

                                       33
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

INDEPENDENCE ENERGY CORP.

By:_____________________________________
   Name:
   Title:

By:_____________________________________
   Name:
   Title:

By:__________________________________________
   Name:
   Title:

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

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                         CLOSING STATEMENT PAGE FOLLOWS]

                                       34
<PAGE>
                                CLOSING STATEMENT

Pursuant to the attached  Securities  Purchase  Agreement,  dated as of the date
hereto,  the  purchasers  shall  purchase up to  14,905,918  of Common Stock and
7,452,959  Warrants from  Independence  Energy Corp., a Nevada  corporation (the
"Company").  All funds will be wired into an account  maintained by the Company.
All funds will be  disbursed  by the  Company in  accordance  with this  Closing
Statement and the attached wire instructions on the Closing Date.

Disbursement Date: November 12th, 2014

I. PURCHASE PRICE
                 Gross Proceeds to be Received                     $50,000.00

II. DISBURSEMENTS
                  To Escrow Agent                                  $   100.00

                                                                   $
                                                                   $
                                                                   $

TOTAL AMOUNT DISBURSED:                                            $
 To Independence Energy Corp.                                      $49,900.00

AGREED AND ACKNOWLEDGED
AS OF THE DATE HEREOF:

INDEPENDENCE ENERGY CORP.

By:__________________________________________
   Name:
   Title:

                                WIRE INSTRUCTIONS

                                       35
<PAGE>
          [PURCHASER SIGNATURE PAGES TO SECURITIES PURCHASE AGREEMENT]

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

Name of Purchaser:

Signature of Authorized Signatory of Purchaser: ________________________________

Name of Authorized Signatory:

Title of Authorized Signatory:

Email Address of Authorized Signatory:

Address for Notice to Purchaser:

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

Subscription Amount:
Shares:
Warrant Shares:
EIN Number:

                                       36Exhibit 10.2

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

                          COMMON STOCK PURCHASE WARRANT

Warrant Shares: __________                           Issue Date: _______________

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

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

     Section 2. Exercise.

     a) Exercise of Warrant. Exercise of the purchase rights represented by this
Warrant may be made,  in whole or in part,  at any time or times on or after the
Initial  Exercise Date and on or before the Termination  Date by delivery to the
Company (or such other  office or agency of the Company as it may  designate  by
notice  in  writing  to the  registered  Holder  at the  address  of the  Holder
appearing on the books of the Company) of a duly executed  facsimile copy of the

                                       1
<PAGE>
Notice of Exercise form annexed  hereto and within three (3) Trading Days of the
date said Notice of Exercise is delivered to the Company, the Company shall have
received payment of the aggregate Exercise Price of the shares thereby purchased
by wire  transfer  or  cashier's  check  drawn on a United  States  bank or,  if
available, pursuant to the cashless exercise procedure specified in Section 2(c)
below.  No  ink-original  Notice of Exercise  shall be  required,  nor shall any
medallion  guarantee (or other type of guarantee or  notarization) of any Notice
of Exercise form be required.  Notwithstanding  anything herein to the contrary,
the Holder  shall not be required to  physically  surrender  this Warrant to the
Company  until the Holder has  purchased  all of the  Warrant  Shares  available
hereunder and the Warrant has been  exercised in full, in which case, the Holder
shall  surrender this Warrant to the Company for  cancellation  within three (3)
Trading  Days of the date the  final  Notice of  Exercise  is  delivered  to the
Company.  Partial  exercises of this Warrant resulting in purchases of a portion
of the total number of Warrant Shares available  hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an
amount equal to the applicable  number of Warrant Shares  purchased.  The Holder
and the Company  shall  maintain  records  showing the number of Warrant  Shares
purchased  and  the  date of such  purchases.  The  Company  shall  deliver  any
objection to any Notice of Exercise  Form within one (1) Business Day of receipt
of such notice.  The Holder and any  assignee,  by  acceptance  of this Warrant,
acknowledge  and agree  that,  by reason of the  provisions  of this  paragraph,
following the purchase of a portion of the Warrant Shares hereunder,  the number
of Warrant Shares available for purchase hereunder at any given time may be less
than the amount stated on the face hereof.

     b) Exercise  Price.  The exercise price per share of the Common Stock under
this Warrant shall be $0.005,  subject to adjustment  hereunder  (the  "Exercise
Price").

     c) For Cash  Exercise.  If at any time  after the  earlier of (i) the first
year  anniversary of the date of the Purchase  Agreement and (ii) the completion
of the  then-applicable  holding  period  required by Rule 144, or any successor
provision  then  in  effect,  there  is  no  effective   Registration  Statement
registering,  or no current prospectus  available for, the resale of the Warrant
Shares by the Holder,  then this Warrant may also be  exercised,  in whole or in
part,  at such time by means of a "for cash  exercise" in which the Holder shall
be entitled to receive a number of Warrant Shares equal to the quotient obtained
by paying an amount to the Company  equal to the amount of Warrant  shares to be
delivered  multiplied  by the Exercise  Price.  Such  Exercised  shares shall be
delivered to the Holder  within 7 business days of receipt by the Company of the
Exercise Price.

Notwithstanding  anything herein to the contrary,  on the Termination Date, this
Warrant shall be automatically  exercised via For Cash Exercise pursuant to this
Section 2(c) or in the absence of such  exercise  the Warrants  shall lapse upon
the Termination Date.

     d) Mechanics of Exercise.

     i.  Delivery of Warrant  Shares Upon  Exercise.  Warrant  Shares  purchased
hereunder  shall be transmitted by the Transfer Agent to the Holder by crediting
the account of the  Holder's  prime  broker with The  Depository  Trust  Company

                                       2
<PAGE>
through its Deposit or Withdrawal at Custodian system ("DWAC") if the Company is
then a  participant  in  such  system  and  either  (A)  there  is an  effective
registration  statement  permitting  the  issuance of the  Warrant  Shares to or
resale of the Warrant  Shares by the Holder or (B) the shares are  eligible  for
resale by the Holder without volume or  manner-of-sale  limitations  pursuant to
Rule 144,  and  otherwise by physical  delivery to the address  specified by the
Holder in the  Notice of  Exercise  by the date that is three (3)  Trading  Days
after the latest of (A) the  delivery  to the  Company of the Notice of Exercise
and (B) surrender of this Warrant (if required)  (such date,  the "Warrant Share
Delivery  Date").  The Warrant  Shares shall be deemed to have been issued,  and
Holder or any other person so  designated to be named therein shall be deemed to
have become a holder of record of such shares for all  purposes,  as of the date
the  Warrant has been  exercised,  with  payment to the Company of the  Exercise
Price (or by cashless exercise,  if permitted) and all taxes required to be paid
by the Holder,  if any,  pursuant to Section  2(d)(vi)  prior to the issuance of
such shares, having been paid. If the Company fails for any reason to deliver to
the Holder the  Warrant  Shares  subject to a Notice of  Exercise by the Warrant
Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated
damages and not as a penalty,  for each $1,000 of Warrant Shares subject to such
exercise  (based on the VWAP of the Common  Stock on the date of the  applicable
Notice of Exercise),  $10 per Trading Day  (increasing to $20 per Trading Day on
the fifth  Trading Day after such  liquidated  damages begin to accrue) for each
Trading Day after such Warrant Share Delivery Date until such Warrant Shares are
delivered or Holder rescinds such exercise.

     ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been
exercised  in part,  the  Company  shall,  at the  request  of a Holder and upon
surrender  of this Warrant  certificate,  at the time of delivery of the Warrant
Shares,  deliver to the Holder a new Warrant evidencing the rights of the Holder
to purchase the unpurchased Warrant Shares called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

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

     iv.  Compensation  for Buy-In on Failure to Timely  Deliver  Warrant Shares
Upon Exercise.  In addition to any other rights available to the Holder,  if the
Company fails to cause the Transfer  Agent to transmit to the Holder the Warrant
Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and
if after such date the Holder is required by its broker to purchase  (in an open

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

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

     vi. Charges,  Taxes and Expenses.  Issuance of Warrant Shares shall be made
without  charge to the Holder for any issue or transfer tax or other  incidental
expense in respect of the  issuance  of Warrant  Shares,  all of which taxes and
expenses  shall be paid by the Company,  and such Warrant Shares shall be issued
in the name of the  Holder  or in such name or names as may be  directed  by the
Holder;  provided,  however,  that in the event  that  Warrant  Shares are to be
issued  in a  name  other  than  the  name  of the  Holder,  this  Warrant  when

                                       4
<PAGE>
surrendered  for exercise shall be  accompanied by the Assignment  Form attached
hereto duly  executed by the Holder and the Company may require,  as a condition
thereto,  the payment of a sum  sufficient  to reimburse it for any transfer tax
incidental  thereto.  The Company shall pay all Transfer Agent fees required for
same-day processing of any Notice of Exercise.

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

     e) Holder's Exercise Limitations. The Company shall not effect any exercise
of this  Warrant,  and a Holder shall not have the right to exercise any portion
of this Warrant,  pursuant to Section 2 or  otherwise,  to the extent that after
giving effect to such  issuance  after  exercise as set forth on the  applicable
Notice of Exercise,  the Holder (together with the Holder's Affiliates,  and any
other Persons  acting as a group together with the Holder or any of the Holder's
Affiliates),  would  beneficially  own in  excess  of the  Beneficial  Ownership
Limitation  (as defined  below).  For purposes of the  foregoing  sentence,  the
number of  shares  of Common  Stock  beneficially  owned by the  Holder  and its
Affiliates  shall  include the number of shares of Common  Stock  issuable  upon
exercise of this Warrant with respect to which such determination is being made,
but shall  exclude the number of shares of Common  Stock which would be issuable
upon  (i)  exercise  of the  remaining,  nonexercised  portion  of this  Warrant
beneficially  owned by the Holder or any of its  Affiliates and (ii) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including,  without limitation, any other Common Stock Equivalents)
subject to a limitation on conversion  or exercise  analogous to the  limitation
contained  herein  beneficially  owned by the  Holder or any of its  Affiliates.
Except as set forth in the  preceding  sentence,  for  purposes of this  Section
2(e),  beneficial ownership shall be calculated in accordance with Section 13(d)

                                       5
<PAGE>
of the Exchange Act and the rules and  regulations  promulgated  thereunder,  it
being  acknowledged  by the Holder that the Company is not  representing  to the
Holder that such calculation is in compliance with Section 13(d) of the Exchange
Act and the Holder is solely  responsible for any schedules required to be filed
in accordance  therewith.  To the extent that the  limitation  contained in this
Section 2(e) applies,  the  determination of whether this Warrant is exercisable
(in  relation  to  other  securities  owned  by the  Holder  together  with  any
Affiliates) and of which portion of this Warrant is exercisable  shall be in the
sole discretion of the Holder,  and the submission of a Notice of Exercise shall
be  deemed  to  be  the  Holder's  determination  of  whether  this  Warrant  is
exercisable (in relation to other  securities  owned by the Holder together with
any  Affiliates)  and of which portion of this Warrant is  exercisable,  in each
case subject to the Beneficial Ownership Limitation,  and the Company shall have
no  obligation  to verify or confirm  the  accuracy  of such  determination.  In
addition,  a determination as to any group status as contemplated above shall be
determined  in  accordance  with Section 13(d) of the Exchange Act and the rules
and regulations  promulgated  thereunder.  For purposes of this Section 2(e), in
determining the number of outstanding  shares of Common Stock, a Holder may rely
on the number of  outstanding  shares of Common  Stock as  reflected  in (A) the
Company's most recent  periodic or annual report filed with the  Commission,  as
the case may be, (B) a more recent public  announcement  by the Company or (C) a
more recent  written  notice by the Company or the Transfer  Agent setting forth
the  number of shares of Common  Stock  outstanding.  Upon the  written  or oral
request of a Holder,  the Company  shall within two Trading Days confirm  orally
and in  writing  to the  Holder  the  number  of shares  of  Common  Stock  then
outstanding. In any case, the number of outstanding shares of Common Stock shall
be determined after giving effect to the conversion or exercise of securities of
the Company,  including this Warrant,  by the Holder or its Affiliates since the
date as of which such number of outstanding shares of Common Stock was reported.
The "Beneficial  Ownership Limitation" shall be 4.99% of the number of shares of
the Common Stock outstanding  immediately after giving effect to the issuance of
shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon
not less than 61 days' prior notice to the Company, may increase or decrease the
Beneficial Ownership  Limitation  provisions of this Section 2(e), provided that
the Beneficial  Ownership  Limitation in no event exceeds 9.99% of the number of
shares of the Common Stock  outstanding  immediately  after giving effect to the
issuance of shares of Common  Stock upon  exercise of this  Warrant  held by the
Holder and the provisions of this Section 2(e) shall continue to apply. Any such
increase or decrease will not be effective  until the 61st day after such notice
is delivered to the Company. The provisions of this paragraph shall be construed
and implemented in a manner  otherwise than in strict  conformity with the terms
of this Section 2(e) to correct this paragraph (or any portion hereof) which may
be defective or inconsistent with the intended Beneficial  Ownership  Limitation
herein  contained  or to make changes or  supplements  necessary or desirable to
properly  give effect to such  limitation.  The  limitations  contained  in this
paragraph shall apply to a successor holder of this Warrant.

     f)  Issuance  Restrictions.  If the Company  has not  obtained  Shareholder
Approval,  then the Company may not issue upon exercise of this Warrant a number
of shares of Common  Stock,  which,  when  aggregated  with any shares of Common
Stock issued (i) pursuant to the Purchase Agreement, (ii) upon prior exercise of
this or any other Warrant  issued  pursuant to the Purchase  Agreement and (iii)
pursuant to any  warrants  issued to any  registered  broker-dealer  as a fee in
connection with the issuance of Securities  pursuant to the Purchase  Agreement,
would exceed the current  authorized  share  amount of the  Company,  subject to
adjustment  for  reverse  and  forward  stock  splits,  stock  dividends,  stock
combinations and other similar transactions of the Common Stock that occur after
the date of the  Purchase  Agreement  (such  number  of  shares,  the  "Issuable
Maximum").  The Holder and the holders of the other Warrants  issued pursuant to
the Purchase  Agreement  shall be entitled to a portion of the Issuable  Maximum
equal  to  the  quotient   obtained  by  dividing  (x)  the  Holder's   original
Subscription  Amount by (y) the aggregate  original  Subscription  Amount of all
holders pursuant to the Purchase Agreement. In addition, the Holder may allocate
its pro-rata  portion of the Issuable  Maximum among  Warrants held by it in its

                                       6
<PAGE>
sole  discretion.  Such portion shall be adjusted  upward ratably in the event a
Purchaser no longer  holds any Warrants and the amount of shares  issued to such
Purchaser pursuant to its Warrants was less than such Purchaser's pro-rata share
of the Issuable Maximum.  For avoidance of doubt,  unless and until any required
Shareholder  Approval  is  obtained  and  effective,   warrants  issued  to  any
registered  broker-dealer  as a fee in  connection  with the  Securities  issued
pursuant to the  Purchase  Agreement  as  described  in clause (iii) above shall
provide that such  warrants  shall not be allocated  any portion of the Issuable
Maximum and shall be unexercisable unless and until such Shareholder Approval is
obtained and effective.

     g) Call  Provision.  Subject to the  provisions of Section 2(e) [or Section
2(f)] and this Section 2(g), if, after the Effective Date, (i) the VWAP for each
of 20 consecutive  Trading Days (the "Measurement  Period," which 20 consecutive
Trading Day period  shall not have  commenced  until after the  Effective  Date)
exceeds  $0.20  (subject to  adjustment  for forward and reverse  stock  splits,
recapitalizations,  stock  dividends  and the like  after the  Initial  Exercise
Date),  (ii) the  average  daily  volume  for such  Measurement  Period  exceeds
$100,000 per Trading Day (subject to  adjustment  for forward and reverse  stock
splits,  recapitalizations,  stock  dividends  and the like  after  the  Initial
Exercise Date) and (iii) the Holder is not in possession of any information that
constitutes,  or might  constitute,  material  non-public  information which was
provided by the Company,  then the Company may,  within 1 Trading Day of the end
of such Measurement  Period, call for cancellation of all or any portion of this
Warrant for which a Notice of Exercise has not yet been delivered (such right, a
"Call") for  consideration  equal to $.001 per Warrant  Share.  To exercise this
right,  the Company must deliver to the Holder an irrevocable  written notice (a
"Call Notice"),  indicating  therein the portion of unexercised  portion of this
Warrant to which such notice applies. If the conditions set forth below for such
Call are satisfied  from the period from the date of the Call Notice through and
including  the Call Date (as defined  below),  then any portion of this  Warrant
subject to such Call Notice for which a Notice of  Exercise  shall not have been
received by the Call Date will be cancelled at 6:30 p.m. (New York City time) on
the tenth  Trading  Day after the date the Call Notice is received by the Holder
(such date and time, the "Call Date").  Any unexercised  portion of this Warrant
to which  the Call  Notice  does not  pertain  will be  unaffected  by such Call
Notice.  In furtherance  thereof,  the Company covenants and agrees that it will
honor all Notices of Exercise with respect to Warrant  Shares  subject to a Call
Notice  that are  tendered  through  6:30 p.m.  (New York City time) on the Call
Date. The parties agree that any Notice of Exercise  delivered  following a Call
Notice  which calls less than all the  Warrants  shall first  reduce to zero the
number of Warrant  Shares  subject to such Call  Notice  prior to  reducing  the
remaining Warrant Shares available for purchase under this Warrant. For example,
if (A) this Warrant then permits the Holder to acquire 100 Warrant Shares, (B) a
Call Notice pertains to 75 Warrant Shares,  and (C) prior to 6:30 p.m. (New York
City time) on the Call Date the Holder  tenders a Notice of  Exercise in respect
of 50 Warrant Shares,  then (x) on the Call Date the right under this Warrant to
acquire 25 Warrant Shares will be automatically  cancelled,  (y) the Company, in

                                       7
<PAGE>
the time and manner required under this Warrant,  will have issued and delivered
to the Holder 50 Warrant Shares in respect of the exercises following receipt of
the Call Notice,  and (z) the Holder may, until the Termination  Date,  exercise
this Warrant for 25 Warrant Shares (subject to adjustment as herein provided and
subject to subsequent  Call  Notices).  Subject again to the  provisions of this
Section 2(g), the Company may deliver subsequent Call Notices for any portion of
this Warrant for which the Holder shall not have delivered a Notice of Exercise.
Notwithstanding  anything to the contrary set forth in this Warrant, the Company
may not deliver a Call Notice or require the  cancellation  of this Warrant (and
any such  Call  Notice  shall  be  void),  unless,  from  the  beginning  of the
Measurement  Period through the Call Date, (1) the Company shall have honored in
accordance  with the terms of this Warrant all Notices of Exercise  delivered by
6:30 p.m.  (New  York  City  time) on the Call  Date,  and (2) the  Registration
Statement  shall  be  effective  as to all  Warrant  Shares  and the  prospectus
thereunder  available  for use by the Holder for the resale of all such  Warrant
Shares,  and (3) the Common  Stock  shall be listed or quoted for trading on the
Trading  Market,  and (4) there is a sufficient  number of authorized  shares of
Common Stock for issuance of all Securities under the Transaction Documents, and
(5) the  issuance  of the shares  shall not cause a breach of any  provision  of
Section 2(e) [or Section 2(f)] herein.  The Company's right to call the Warrants
under this Section 2(g) shall be exercised  ratably  among the Holders  based on
each Holder's initial purchase of Warrants.

     Section 3. Certain Adjustments.

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

     b) Subsequent  Equity Sales. If the Company or any Subsidiary  thereof,  as
applicable,  at any time while this Warrant is outstanding,  shall sell or grant
any option to  purchase,  or sell or grant any right to  reprice,  or  otherwise

                                       8
<PAGE>
dispose  of or issue  (or  announce  any  offer,  sale,  grant or any  option to
purchase or other disposition) any Common Stock or Common Stock Equivalents,  at
an effective  price per share less than the Exercise  Price then in effect (such
lower price, the "Base Share Price" and such issuances collectively, a "Dilutive
Issuance")  (it being  understood  and  agreed  that if the holder of the Common
Stock or Common  Stock  Equivalents  so issued  shall at any  time,  whether  by
operation of purchase price adjustments, reset provisions,  floating conversion,
exercise or exchange prices or otherwise, or due to warrants,  options or rights
per share  which are issued in  connection  with such  issuance,  be entitled to
receive shares of Common Stock at an effective price per share that is less than
the Exercise Price, such issuance shall be deemed to have occurred for less than
the  Exercise  Price on such date of the  Dilutive  Issuance  at such  effective
price), [then simultaneously with the consummation of each Dilutive Issuance the
Exercise  Price shall be reduced and only  reduced to equal the Base Share Price
and the number of Warrant Shares issuable hereunder shall be increased such that
the aggregate  Exercise Price payable  hereunder,  after taking into account the
decrease in the Exercise Price,  shall be equal to the aggregate  Exercise Price
prior to such  adjustment.  Such  adjustment  shall be made whenever such Common
Stock or Common Stock Equivalents are issued.  Notwithstanding the foregoing, no
adjustments  shall be made, paid or issued under this Section 3(b) in respect of
an Exempt Issuance.  The Company shall notify the Holder,  in writing,  no later
than the Trading Day  following  the  issuance or deemed  issuance of any Common
Stock or Common  Stock  Equivalents  subject to this  Section  3(b),  indicating
therein the  applicable  issuance  price,  or applicable  reset price,  exchange
price,  conversion  price and other pricing  terms (such  notice,  the "Dilutive
Issuance  Notice").  For purposes of  clarification,  whether or not the Company
provides a Dilutive  Issuance  Notice  pursuant to this Section  3(b),  upon the
occurrence of any Dilutive Issuance,  the Holder is entitled to receive a number
of Warrant  Shares  based upon the Base Share  Price  regardless  of whether the
Holder accurately  refers to the Base Share Price in the Notice of Exercise.  If
the Company  enters into a Variable Rate  Transaction,  despite the  prohibition
thereon in the Purchase  Agreement,  the Company  shall be deemed to have issued
Common Stock or Common Stock  Equivalents at the lowest  possible  conversion or
exercise price at which such securities may be converted or exercised

     c)  Subsequent  Rights  Offerings.  If the  Company,  at any time while the
Warrant is outstanding,  shall issue rights,  options or warrants to all holders
of Common  Stock (and not to the  Holder)  entitling  them to  subscribe  for or
purchase  shares of Common  Stock at a price per share less than the VWAP on the
record date  mentioned  below,  then the Exercise Price shall be multiplied by a
fraction,  of which the denominator  shall be the number of shares of the Common
Stock  outstanding  on the date of issuance of such rights,  options or warrants
plus the number of additional shares of Common Stock offered for subscription or
purchase, and of which the numerator shall be the number of shares of the Common
Stock  outstanding  on the date of issuance of such rights,  options or warrants
plus the number of shares which the aggregate offering price of the total number
of  shares  so  offered  (assuming  receipt  by  the  Company  in  full  of  all
consideration  payable upon exercise of such rights,  options or warrants) would
purchase at such VWAP.  Such  adjustment  shall be made  whenever  such  rights,

                                       9
<PAGE>
options or warrants are issued, and shall become effective immediately after the
record date for the  determination  of  stockholders  entitled  to receive  such
rights, options or warrants.

     d) Pro Rata Distributions. During such time as this Warrant is outstanding,
if the Company shall declare or make any dividend or other  distribution  of its
assets (or rights to acquire its  assets) to holders of shares of Common  Stock,
by way of return of capital or otherwise  (including,  without  limitation,  any
distribution of cash, stock or other securities, property or options by way of a
dividend,  spin  off,  reclassification,   corporate  rearrangement,  scheme  of
arrangement or other similar transaction) (a "Distribution"),  at any time after
the  issuance of this  Warrant,  then,  in each such case,  the Holder  shall be
entitled to participate in such  Distribution to the same extent that the Holder
would have  participated  therein if the Holder had held the number of shares of
Common Stock  acquirable upon complete  exercise of this Warrant (without regard
to any  limitations  on  exercise  hereof,  including  without  limitation,  the
Beneficial Ownership  Limitation)  immediately before the date of which a record
is taken for such  Distribution,  or, if no such record is taken, the date as of
which the record  holders of shares of Common Stock are to be determined for the
participation in such Distribution  (provided,  however,  to the extent that the
Holder's  right to  participate  in any such  Distribution  would  result in the
Holder exceeding the Beneficial Ownership Limitation,  then the Holder shall not
be  entitled  to  participate  in such  Distribution  to such  extent (or in the
beneficial  ownership  of any  shares  of  Common  Stock  as a  result  of  such
Distribution to such extent) and the portion of such Distribution  shall be held
in abeyance for the benefit of the Holder until such time, if ever, as its right
thereto  would not  result in the  Holder  exceeding  the  Beneficial  Ownership
Limitation). To the extent that this Warrant has not been partially or completed
exercised at the time of such  Distribution,  such  portion of the  Distribution
shall be held in  abeyance  for the  benefit of the Holder  until the Holder has
exercised this Warrant.

     e)  Fundamental  Transaction.  If,  at  any  time  while  this  Warrant  is
outstanding,  (i) the Company,  directly or  indirectly,  in one or more related
transactions  effects any merger or  consolidation  of the Company  with or into
another  Person,  (ii) the Company,  directly or  indirectly,  effects any sale,
lease, license, assignment,  transfer, conveyance or other disposition of all or
substantially  all of its  assets  in one or a series of  related  transactions,
(iii) any, direct or indirect,  purchase  offer,  tender offer or exchange offer
(whether  by the  Company or  another  Person) is  completed  pursuant  to which
holders of Common Stock are permitted to sell,  tender or exchange  their shares
for other  securities,  cash or property and has been accepted by the holders of
50% or more of the  outstanding  Common  Stock,  (iv) the  Company,  directly or
indirectly,  in one or more related transactions  effects any  reclassification,
reorganization or  recapitalization  of the Common Stock or any compulsory share
exchange  pursuant to which the Common Stock is  effectively  converted  into or
exchanged for other securities,  cash or property, or (v) the Company,  directly
or indirectly,  in one or more related transactions consummates a stock or share
purchase agreement or other business combination (including, without limitation,
a  reorganization,  recapitalization,  spin-off or scheme of  arrangement)  with
another  Person or group of Persons  whereby such other Person or group acquires
more than 50% of the  outstanding  shares of Common  Stock  (not  including  any
shares of Common Stock held by the other Person or other Persons making or party

                                       10
<PAGE>
to, or associated or affiliated  with the other Persons making or party to, such
stock  or  share  purchase  agreement  or other  business  combination)  (each a
"Fundamental Transaction"),  then, upon any subsequent exercise of this Warrant,
the Holder shall have the right to receive,  for each  Warrant  Share that would
have been  issuable upon such exercise  immediately  prior to the  occurrence of
such Fundamental Transaction, at the option of the Holder (without regard to any
limitation  in Section  2(e) on the  exercise  of this  Warrant),  the number of
shares of Common  Stock of the  successor  or  acquiring  corporation  or of the
Company, if it is the surviving  corporation,  and any additional  consideration
(the  "Alternate  Consideration")  receivable  as a result  of such  Fundamental
Transaction  by a holder of the number of shares of Common  Stock for which this
Warrant  is  exercisable  immediately  prior  to  such  Fundamental  Transaction
(without  regard to any  limitation  in  Section  2(e) on the  exercise  of this
Warrant).  For purposes of any such exercise,  the determination of the Exercise
Price shall be appropriately  adjusted to apply to such Alternate  Consideration
based on the amount of Alternate  Consideration issuable in respect of one share
of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise  Price among the  Alternate  Consideration  in a reasonable  manner
reflecting  the relative  value of any  different  components  of the  Alternate
Consideration.  If  holders  of Common  Stock  are  given  any  choice as to the
securities,  cash or property to be received in a Fundamental Transaction,  then
the Holder shall be given the same choice as to the Alternate  Consideration  it
receives  upon  any  exercise  of  this  Warrant   following  such   Fundamental
Transaction.  Notwithstanding  anything  to the  contrary,  [in the  event  of a
Fundamental Transaction,  the Company or any Successor Entity (as defined below)
shall, at the Holder's  option,  exercisable at any time  concurrently  with, or
within 30 days after, the consummation of the Fundamental Transaction,  purchase
this  Warrant from the Holder by paying to the Holder an amount of cash equal to
the Black Scholes Value of the remaining  unexercised portion of this Warrant on
the date of the  consummation of such  Fundamental  Transaction.  "Black Scholes
Value"  means the value of this  Warrant  based on the Black and Scholes  Option
Pricing Model obtained from the "OV" function on Bloomberg,  L.P.  ("Bloomberg")
determined  as  of  the  day  of  consummation  of  the  applicable  Fundamental
Transaction  for pricing  purposes and reflecting (A) a risk-free  interest rate
corresponding  to the U.S.  Treasury rate for a period equal to the time between
the date of the public  announcement of the applicable  Fundamental  Transaction
and the  Termination  Date, (B) an expected  volatility  equal to the greater of
100% and the 100 day  volatility  obtained from the HVT function on Bloomberg as
of  the  Trading  Day  immediately  following  the  public  announcement  of the
applicable Fundamental  Transaction,  (C) the underlying price per share used in
such calculation  shall be the sum of the price per share being offered in cash,
if any, plus the value of any non-cash  consideration,  if any, being offered in
such  Fundamental  Transaction and (D) a remaining option time equal to the time
between  the  date of the  public  announcement  of the  applicable  Fundamental
Transaction  and the  Termination  Date.  The Company  shall cause any successor
entity in a  Fundamental  Transaction  in which the Company is not the  survivor
(the  "Successor  Entity")  to assume in writing all of the  obligations  of the
Company  under this Warrant and the other  Transaction  Documents in  accordance
with the provisions of this Section 3(e) pursuant to written  agreements in form
and substance  reasonably  satisfactory to the Holder and approved by the Holder
(without unreasonable delay) prior to such Fundamental Transaction and shall, at

                                       11
<PAGE>
the option of the Holder,  deliver to the Holder in exchange  for this Warrant a
security of the Successor Entity evidenced by a written instrument substantially
similar  in form  and  substance  to this  Warrant  which is  exercisable  for a
corresponding number of shares of capital stock of such Successor Entity (or its
parent  entity)  equivalent  to  the  shares  of  Common  Stock  acquirable  and
receivable  upon exercise of this Warrant  (without regard to any limitations on
the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise  price which  applies the  exercise  price  hereunder to such shares of
capital  stock (but taking  into  account  the  relative  value of the shares of
Common  Stock  pursuant to such  Fundamental  Transaction  and the value of such
shares of  capital  stock,  such  number of  shares  of  capital  stock and such
exercise  price being for the purpose of protecting  the economic  value of this
Warrant immediately prior to the consummation of such Fundamental  Transaction),
and which is reasonably  satisfactory in form and substance to the Holder.  Upon
the occurrence of any such Fundamental  Transaction,  the Successor Entity shall
succeed  to,  and be  substituted  for (so that  from and after the date of such
Fundamental   Transaction,   the  provisions  of  this  Warrant  and  the  other
Transaction  Documents  referring to the  "Company"  shall refer  instead to the
Successor  Entity),  and may  exercise  every right and power of the Company and
shall assume all of the  obligations  of the Company  under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had
been named as the Company herein.

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

     g) Notice to Holder.

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

     ii. Notice to Allow Exercise by Holder.  If (A) the Company shall declare a
dividend (or any other  distribution in whatever form) on the Common Stock,  (B)
the  Company  shall  declare  a  special  nonrecurring  cash  dividend  on  or a
redemption of the Common Stock,  (C) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe  for or purchase
any shares of capital  stock of any class or of any rights,  (D) the approval of
any  stockholders  of the  Company  shall be  required  in  connection  with any
reclassification  of the Common Stock, any  consolidation or merger to which the
Company is a party,  any sale or  transfer  of all or  substantially  all of the
assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities,  cash or property,  or (E) the Company shall

                                       12
<PAGE>
authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company,  then,  in each case,  the Company shall cause to be
mailed to the Holder at its last  address as it shall  appear  upon the  Warrant
Register  of the  Company,  at least 20  calendar  days prior to the  applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the  purpose of such  dividend,  distribution,
redemption,  rights or warrants,  or if a record is not to be taken, the date as
of which the  holders  of the  Common  Stock of record  to be  entitled  to such
dividend, distributions,  redemption, rights or warrants are to be determined or
(y) the  date on  which  such  reclassification,  consolidation,  merger,  sale,
transfer or share  exchange is expected to become  effective  or close,  and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such  reclassification,  consolidation,  merger,
sale, transfer or share exchange;  provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of
the corporate action required to be specified in such notice. To the extent that
any notice provided hereunder  constitutes,  or contains,  material,  non-public
information regarding the Company or any of the Subsidiaries,  the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report
on Form 8-K. The Holder shall remain  entitled to exercise  this Warrant  during
the period  commencing on the date of such notice to the  effective  date of the
event  triggering  such notice  except as may  otherwise be expressly  set forth
herein.

     Section 4. Transfer of Warrant.

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

                                       13
<PAGE>
     b) New  Warrants.  This  Warrant  may be  divided  or  combined  with other
Warrants  upon  presentation  hereof at the  aforesaid  office  of the  Company,
together with a written notice  specifying the names and  denominations in which
new  Warrants  are to be issued,  signed by the Holder or its agent or attorney.
Subject  to  compliance  with  Section  4(a),  as to any  transfer  which may be
involved in such division or combination,  the Company shall execute and deliver
a new Warrant or Warrants in exchange  for the Warrant or Warrants to be divided
or combined in accordance with such notice.  All Warrants issued on transfers or
exchanges shall be dated the [original Issue] [Initial  Exercise] Date and shall
be  identical  with this  Warrant  except as to the  number  of  Warrant  Shares
issuable pursuant thereto.

     c) Warrant Register.  The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the  "Warrant  Register"),  in
the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the
purpose of any exercise hereof or any  distribution  to the Holder,  and for all
other purposes, absent actual notice to the contrary.

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

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

     Section 5. Miscellaneous.

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

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

                                       14
<PAGE>
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

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

     d) Authorized Shares.

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

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

                                       15
<PAGE>
     Before  taking any action which would result in an adjustment in the number
of Warrant  Shares for which this  Warrant  is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

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

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

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

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

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

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

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

                                       16
<PAGE>
this  Warrant are intended to be for the benefit of any Holder from time to time
of this  Warrant  and shall be  enforceable  by the  Holder or holder of Warrant
Shares.

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

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

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

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

                            (Signature Page Follows)

                                       17
<PAGE>
     IN WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized as of the date first above indicated.

                                        INEPENDENCE ENERGY CORP.

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        By:_____________________________________
                                           Name:
                                           Title:

                                        By:_____________________________________
                                           Name:
                                           Title:

                                       18
<PAGE>
                               NOTICE OF EXERCISE

To: _______________________

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

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

         [  ] in lawful money of the United States; or

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

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

     _________________________________

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

     _________________________________

     _________________________________

     _________________________________

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

[SIGNATURE OF HOLDER]

Name of Investing Entity: _____________________________________________________

Signature of Authorized Signatory of Investing Entity: ________________________

Name of Authorized Signatory: _________________________________________________

Title of Authorized Signatory: ________________________________________________

Date: _________________________________________________________________________

                                       19
<PAGE>
                                 ASSIGNMENT FORM

     (To assign the  foregoing  Warrant,  execute this form and supply  required
information. Do not use this form to purchase shares.)

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

Name:

Address:

Dated:

Holder's Signature:

Holder's Address:

                                       20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]