Document:

EXHIBIT
      10.15

    

    THIS
      AMENDED AND RESTATED SECURED DEBENTURE, AND THE SECURITIES INTO WHICH IT IS
      CONVERTIBLE (COLLECTIVELY, THE “SECURITIES”),
      HAVE
      NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
      (“SEC”)
      OR THE
      SECURITIES COMMISSION OF ANY STATE. THE SECURITIES ARE BEING OFFERED PURSUANT
      TO
      A SAFE HARBOR FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).
      THE
      SECURITIES ARE “RESTRICTED”
AND
      MAY
      NOT BE OFFERED OR SOLD UNLESS THE SECURITIES ARE REGISTERED UNDER THE ACT,
      PURSUANT TO REGULATION D OR PURSUANT TO AVAILABLE EXEMPTIONS FROM THE
      REGISTRATION REQUIREMENTS OF THE ACT AND THE COMPANY WILL BE PROVIDED WITH
      OPINION OF COUNSEL OR OTHER SUCH INFORMATION AS IT MAY REASONABLY REQUIRE TO
      CONFIRM THAT SUCH EXEMPTIONS ARE AVAILABLE. FURTHER HEDGING TRANSACTIONS
      INVOLVING THE SECURITIES MAY NOT BE MADE EXCEPT IN COMPLIANCE WITH THE
      ACT.

     

    

     

    AMENDED
      AND RESTATED SECURED DEBENTURE

     

     

    FALCON
      NATURAL GAS CORP.

     

     

    5%
      Secured Convertible Debenture

     

     

    April
      19, 2007

     

    

    
      	
              No.
                ___

            	
              US$1,000,000

            

    

    

    This
      Amended and Restated Secured Debenture (the “Debenture”)
      is
      issued on June 20, 2005 (the “Closing Date”)
      by
      Falcon Natural Gas Corp., a Nevada corporation (the “Company”),
      to
      Cornell Capital Partners, LP (together
      with its permitted successors and assigns, the “Holder”)
      pursuant to exemptions from registration
      under
      the Securities Act of 1933, as amended.

     

    WHEREAS,
      on
      April 19, 2005, the Company issued a Secured Debenture in the principal amount
      of $1,000,000 (the “Original
      Debenture”)
      to the
      Holder, pursuant to which no principal or accrued interest has been paid to
      the
      Holder.

    

    WHEREAS,
      this
      Debenture shall amend and supersede the Original Debenture.

     

    FOR
      VALUE RECEIVED,
      the
      Company hereby promises to pay to the Holder or its successors and assigns
      the
      principal sum of One Million Dollars ($1,000,000), together with accrued but
      unpaid interest on or before April 19, 2007 (the “Maturity
      Date”)
      in
      accordance with the following terms:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    ARTICLE
      I.

     

    Section
      1.01 Payments.
      Interest
      on the outstanding principal balance hereof shall be due and payable monthly,
      in
      arrears, commencing on the earlier to occur of either (i) the date the
      registration statement filed pursuant to the Investors Registration Rights
      Agreement is declared effective by the SEC or (ii) September 1, 2005 and shall
      continue on the first day of each calendar month thereafter that any amounts
      under this Debenture are due and payable (each, an “Interest
      Payment Date”).
      Principal shall be due and payable in five (5) equal installments as outlined
      on
      the schedule attached hereto (“Schedule
      I”),
      plus
      accrued interest of each such installment or the highest rate permitted by
      applicable law, if lower. The installments of principal shall be due and payable
      commencing on the earlier to occur of either (i) the date the registration
      statement filed pursuant to the Investors Registration Rights Agreement is
      declared effective by the SEC or (ii) September 1, 2005 and
      subsequent installments shall be due and payable on the first day of each
      calendar month thereafter (“Principal
      Payment Date”)
      until
      the outstanding principal balance is paid in full. All payments in respect
      of
      the indebtedness evidenced hereby shall be made in collected funds, and shall
      be
      applied to principal, accrued interest and charges and expenses owing under
      or
      in connection with this Debenture in such order as the Holder elects, except
      that payments shall be applied to accrued interest before principal.
      Notwithstanding the foregoing, this Debenture shall become due and immediately
      payable, including all accrued but unpaid interest, upon an Event of Default.
      In
      the event the Holder has elected to convert a portion of this Debenture,
      pursuant to Section 1.03, in lieu of receiving a cash payment as outlined in
      this Section 1.01, the Company shall be entitled to an off-set of the cash
      payment due pursuant to Schedule I.

     

    Section
      1.02 Interest.
      Interest
      shall accrue on the outstanding principal balance hereof at an annual rate
      equal
      to five percent (5%). Interest shall be calculated on the basis of a 360-day
      year and the actual number of days elapsed, to the extent permitted by
      applicable law. Interest hereunder will be paid to the Holder.

     

    Section
      1.03 Optional
      Conversion.
      In
      lieu
      of receiving cash payments, pursuant to Section 1.01, the Holder may elect
      to
      convert any portion of this Debenture.
      The
      Holder is entitled, at its option, to convert, and sell on the same day, at
      any
      time and from time to time, until payment in full of this Debenture, all or
      any
      part of the principal amount of the Debenture, plus accrued interest, into
      shares (the “Conversion
      Shares”)
      of the
      Company’s common stock, par value US$0.0001 per share (“Common
      Stock”),
      at
      the price per share (the “Conversion
      Price”)
      equal
      to Sixty Cents ($0.60). If there is an Event of Default pursuant to any of
      the
      documents and/or agreements, including this Debenture, executed in connection
      with this Debenture remains uncured for the time period prescribed in the
      relevant document the Conversion Price shall be Ten Cents ($0.10) (the
“Default
      Conversion Price”).
      

     

    At
      the
      Company’s discretion, it may, upon written notification to the Holder, receipt
      of which is confirmed by the Holder, reject the conversions of the Holder for
      a
      period of five (5) trading days on a maximum of three (3) separate occasions
      during the life of this Debenture. Otherwise, there shall be no other
      restrictions on the Holder’s ability to convert and sell any part of this
      Debenture. Notwithstanding the foregoing, in the event of default (as defined
      herein or the Investor Registration Rights Agreement of even date herewith),
      such limitation upon conversions shall not apply and the Holder shall be
      entitled to convert without limitation or restriction. 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    Section
      1.04 Reservation
      of Common Stock.
      The
      Company shall reserve and keep available out of its authorized but unissued
      shares of Common Stock, solely for the purpose of effecting the conversion
      of
      this Debenture, such number of shares of Common Stock as shall from time to
      time
      be sufficient to effect such conversion, based upon the Conversion Price. If
      at
      any time the Company does not have a sufficient number of Conversion Shares
      authorized and available, then the Company shall call and hold a special meeting
      of its stockholders within thirty (30) days of that time for the sole
      purpose of increasing the number of authorized shares of Common
      Stock.

     

    Section
      1.05 Right
      of Redemption.
      The
      Company at its option shall have the right to redeem, with fifteen (15) business
      days advance written notice (the “Redemption
      Notice”),
      a
      portion or all outstanding convertible debenture. The redemption price shall
      be
      one hundred twenty percent (120%) of the amount redeemed plus accrued interest.
      

     

    Section
      1.06 Registration
      Rights.
      The
      Company is obligated to register the resale of the Conversion Shares under
      the
      Securities Act of 1933, as amended, pursuant to the terms of a Registration
      Rights Agreement, between the Company and the Holder of even date herewith
      (the
“Investor
      Registration Rights Agreement”).

     

    Section
      1.07 Interest
      Payments.
      The
      interest so payable will be paid at the time of maturity or conversion to the
      person in whose name this Debenture is registered. At the time such interest
      is
      payable, the Holder, in its sole discretion, may elect to receive the interest
      in cash (via wire transfer or certified funds) or in the form of Common
      Stock. In the event of default, as described in Article III
      Section 3.01 hereunder, the Holder may elect that the interest be paid in
      cash (via wire transfer or certified funds) or in the form of Common Stock.
      If
      paid in the form of Common Stock, the amount of stock to be issued will be
      calculated as follows: the value of the stock shall be the Closing Bid Price
      on:
      (i) the date the interest payment is due; or (ii) if the interest
      payment is not made when due, the date the interest payment is made. A number
      of
      shares of Common Stock with a value equal to the amount of interest due shall
      be
      issued. No fractional shares will be issued; therefore, in the event that the
      value of the Common Stock per share does not equal the total interest due,
      the
      Company will pay the balance in cash.

     

    Section
      1.08 Paying
      Agent and Registrar.
      Initially, the Company will act as paying agent and registrar. The Company
      may
      change any paying agent, registrar, or Company-registrar by giving the Holder
      not less than ten (10) business days’ written notice of its election to do
      so, specifying the name, address, telephone number and facsimile number of
      the
      paying agent or registrar. The Company may act in any such
      capacity.

     

    Section
      1.09 Secured
      Nature of Debenture.
      This
      Debenture is secured by all of the assets and property of the Company as set
      forth on Exhibit A to the Security Agreement dated the date hereof between
      the
      Company and the Holder (the “Security
      Agreement”).
      As
      set forth in the Security Agreement, Holder’s security interest shall terminate
      upon the occurrence of an Expiration Event as defined in the Security
      Agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

     

    ARTICLE
      II.

     

    Section
      2.01 Amendments
      and Waiver of Default.
      Notwithstanding anything to the contrary herein, without the consent of the
      Holder, the Debenture may be amended to cure any ambiguity, defect or
      inconsistency, or to provide for assumption of the Company obligations to the
      Holder.

     

     

    ARTICLE
      III.

     

    Section
      3.01 Events
      of Default.
      An
      Event
      of Default is defined as follows: (a) failure by the Company to pay amounts
      due hereunder within fifteen (15) days of the date of maturity of this
      Debenture; (b) failure by the Company to comply with the terms of the
      Irrevocable Transfer Agent Instructions attached to the Securities Purchase
      Agreement; (c) failure by the Company’s transfer agent to issue freely tradeable
      Common Stock to the Holder within five (5) days of the Company’s receipt of
      the attached Notice of Conversion from Holder; (d) failure by the Company
      for ten (10) days after notice to it to comply with any of its other
      agreements in the Debenture; (e) events of bankruptcy or insolvency;
      (f) a breach by the Company of its obligations under the Securities
      Purchase Agreement or the Investor Registration Rights Agreement which is not
      cured by the Company within ten (10) days after receipt of written notice
      thereof. Upon the occurrence of an Event of Default, the Holder may, in its
      sole
      discretion, accelerate full repayment of all debentures outstanding and accrued
      interest thereon or may, notwithstanding any limitations contained in this
      Debenture and/or the Securities Purchase Agreement dated the date hereof between
      the Company and Cornell Capital Partners, L.P. (the “Securities
      Purchase Agreement”),
      convert all debentures outstanding and accrued interest thereon into shares
      of
      Common Stock pursuant to Section 1.02 herein. 

     

    Section
      3.02 Failure
      to Issue Unrestricted Common Stock.
      As
      indicated in Article III Section 3.01, a breach by the Company of its
      obligations under the Investor Registration Rights Agreement shall be deemed
      an
      Event of Default, which if not cured within ten (10) days, shall entitle
      the Holder to accelerate full repayment of all debentures outstanding and
      accrued interest thereon or, notwithstanding any limitations contained in this
      Debenture and/or the Securities Purchase Agreement, to convert all debentures
      outstanding and accrued interest thereon into shares of Common Stock pursuant
      to
      Section 1.02 herein. The Company acknowledges that failure to honor a Notice
      of
      Conversion shall cause irreparable harm to the Holder. 

     

     

    ARTICLE
      IV.

     

    Section
      4.01 Rights
      and Terms of Conversion.
      This
      Debenture, in whole or in part, may be converted at any time following the
      Closing Date, into shares of Common Stock at a price equal to the Conversion
      Price as described in Section 1.03 above.

     

    Section
      4.02 Re-issuance
      of Debenture.
      When
      the
      Holder elects to convert a part of the Debenture, then the Company shall reissue
      a new Debenture in the same form as this Debenture to reflect the new principal
      amount.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

     

    ARTICLE
      V.

     

    Section
      5.01 Anti-dilution.
      In
      the
      event that the Company shall at any time subdivide the outstanding shares of
      Common Stock, or shall issue a stock dividend on the outstanding Common Stock,
      the Conversion Price in effect immediately prior to such subdivision or the
      issuance of such dividend shall be proportionately decreased, and in the event
      that the Company shall at any time combine the outstanding shares of Common
      Stock, the Conversion Price in effect immediately prior to such combination
      shall be proportionately increased, effective at the close of business on the
      date of such subdivision, dividend or combination as the case may
      be.

     

    Section
      5.02 Consent
      of Holder to Sell Capital Stock or Grant Security
      Interests.
      Except
      for the Standby Equity Distribution Agreement dated the date hereof between
      the
      Company and Cornell Capital Partners, LP, so long as any of the principal of
      or
      interest on this Debenture remains unpaid and unconverted, the Company shall
      not, without the prior consent of the Holder, issue or sell (i) any Common
      Stock or Preferred Stock without consideration or for a consideration per share
      less than its fair market value determined immediately prior to its issuance,
      (ii) issue or sell any Preferred Stock, warrant, option, right, contract,
      call, or other security or instrument granting the holder thereof the right
      to
      acquire Common Stock without consideration or for a consideration per share
      less
      than such Common Stock’s fair market value determined immediately prior to its
      issuance, (iii)
      enter into any security instrument granting the holder a security interest
      in
      any of the assets of the Company, or
      (iv)
      file any registration statement on Form S-8.

     

     

    ARTICLE
      VI.

     

    Section
      6.01 Notice.
      Notices
      regarding this Debenture shall be sent to the parties at the following
      addresses, unless a party notifies the other parties, in writing, of a change
      of
      address:

     

    
      	
              If
                to the Company, to:

            	
              Falcon
                Natural Gas Corp.

            
	 	
              Westchase
                Center

            
	 	
              2500
                Citywest Blvd - Suite 300

            
	 	
              Houston,
                TX 77019

            
	 	
              Attention: Massimiliano
                Pozzoni

            
	 	
              Telephone: (832)
                476-8699

            
	 	
              Facsimile: (713)
                456-2581

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Nicholson Graham LLP

            
	 	
              201
                South Biscayne Boulevard - Suite 2000

            
	 	
              Miami,
                FL 33131-2399

            
	 	
              Attention: Clayton
                E. Parker, Esq.

            
	 	
              Telephone: (305)
                539-3300

            
	 	
              Facsimile: (305)
                358-7095

            
	 	 
	
              If
                to the Holder:

            	
              Cornell
                Capital Partners, LP

            
	 	
              101
                Hudson Street, Suite 3700

            
	 	
              Jersey
                City, NJ 07303

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 
	
              With
                a copy to:

            	
              David
                Gonzalez, Esq.

            
	 	
              101
                Hudson Street - Suite 3700

            
	 	
              Jersey
                City, NJ 07302

            
	 	
              Telephone: (201)
                985-8300

            
	 	
              Facsimile: (201)
                985-8266

            
	 	 

    

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Section
      6.02 Governing
      Law.
      This
      Debenture shall be deemed to be made under and shall be construed in accordance
      with the laws of the State of Nevada without giving effect to the principals
      of
      conflict of laws thereof. Each of the parties consents to the jurisdiction
      of
      the U.S. District Court sitting in the District of the State of New Jersey
      or the state courts of the State of New Jersey sitting in Hudson County, New
      Jersey in connection with any dispute arising under this Debenture and hereby
      waives, to the maximum extent permitted by law, any objection, including any
      objection based on forum non conveniens
      to the
      bringing of any such proceeding in such jurisdictions.

     

    Section
      6.03 Severability.
      The
      invalidity of any of the provisions of this Debenture shall not invalidate
      or
      otherwise affect any of the other provisions of this Debenture, which shall
      remain in full force and effect.

     

    Section
      6.04 Entire
      Agreement and Amendments.
      This
      Debenture represents the entire agreement between the parties hereto with
      respect to the subject matter hereof and there are no representations,
      warranties or commitments, except as set forth herein. This Debenture may be
      amended only by an instrument in writing executed by the Company and the
      Holder.

     

    Section
      6.05 Counterparts.
      This
      Debenture may be executed in multiple counterparts, each of which shall be
      an
      original, but all of which shall be deemed to constitute on
      instrument.

     

    IN
      WITNESS WHEREOF,
      with
      the intent to be legally bound hereby, the Company as executed this Amended
      and
      Restated Secured Debenture as of the date first written above.

     

    
      	 	
              FALCON
                NATURAL GAS CORP.

            
	 	 
	 	
              By: /s/
                Massimiliano Pozzoni  

            
	 	
              Name: Massimiliano
                Pozzoni

            
	 	
              Title: Vice
                President

            

    

    

    

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

        
          

        

      

    

    
      SCHEDULE
        I

      PAYMENT
        SCHEDULE

     

     

    
      	 	 	 	 	 
	
              Principal

            	
              $1,000,000
                

            	 	 	 
	
              Interest

            	
              5%

            	 	 	 
	
              Closing
                Date:

            	
              June
                20, 2005

            	 	 	 
	 	 	 	 	 	 

    

     

    
      	 	 	 	 	 	 	 	 	 	 	 
	
              Payment

            	 	
              Payment
                Due
                Date

            	 	
              Interest

            	 	
              Principal

            	 	
              Total
                Payment

            	 	
              Outstanding
                Principal

            
	
              1

            	 	
              09/01/2005

            	 	
              $4,166.67

            	 	
              $200,000.00

            	 	
              $204,166.67

            	 	
              800,000

            
	
              2

            	 	
              10/01/2005

            	 	
              $3,333.33

            	 	
              $200,000.00

            	 	
              $203,333.33

            	 	
              600,000

            
	
              3

            	 	
              11/01/2005

            	 	
              $2,500.00

            	 	
              $200,000.00

            	 	
              $202,500.00

            	 	
              400,000

            
	
              4

            	 	
              12/01/2005

            	 	
              $1,666.67

            	 	
              $200,000.00

            	 	
              $201,666.67

            	 	
              200,000

            
	
              5

            	 	
              01/01/2006

            	 	
              $833.33

            	 	
              $200,000.00

            	 	
              $200,833.33

            	 	
              0

            
	 	 	
               

            	 	
               

            	 	
              $1,000,000.00

            	 	
               

            	 	
               

            

    

    

    
      
        
        

      

      
        SCHEDULE
          I-1

        
          

        

      

      
        
        

        
          

        

      

    

    

     

    EXHIBIT
      “A”

     

    NOTICE
      OF CONVERSION

     

    (To
      be executed by the Holder in order to Convert the
      Debenture)

     

    

    
      	
               

              TO:

               

            	 

    

    

    The
      undersigned hereby irrevocably elects to convert US$
      ____________________ of the principal amount of the above Debenture into Shares
      of Common Stock of Falcon Natural Gas Corp., according to the conditions stated
      therein, as of the Conversion Date written below.

     

    
      	
              Conversion
                Date:

            	
            
	
              Applicable
                Conversion Price:

            	 
	
              Signature:

            	 
	
              Name:

            	 
	
              Address:

            	 
	
              Amount
                to be converted:

            	
              US$

            
	
              Amount
                of Debenture unconverted:

            	
              US$

            
	
              Conversion
                Price per share: 

            	
              US$

            
	
              Number
                of shares of Common Stock to be issued:

            	 
	
              Please
                issue the shares of Common Stock in the following name and to the
                following address:

            	 
	
              Issue
                to:

            	 
	
              Authorized
                Signature:

            	 
	
              Name:

            	 
	
              Title:

            	 
	
              Phone
                Number:

            	 
	
              Broker
                DTC Participant Code:

            	 
	
              Account
                Number:

            	 

    

    

    
      
        
        

      

      
        EXHIBIT
          A-1EXHIBIT
        10.17

       

       

      AMENDED
        AND RESTATED WARRANT

       

      

      THE
        SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
        THE
        SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
        SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
        STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
        OR
        APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
        SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
        OR
        APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
        SAID
        ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
        WITH A BONA FIDE MARGIN ACCOUNT.

       

      FALCON
        NATURAL GAS CORP.

       

       

      Warrant
        To Purchase Common Stock

       

      
        	
                Warrant
                  No.:001

              	
                Number
                  of Shares: 1,000,000

              

      

      

      Date
        of
        Issuance: June 20, 2005

      

      WHEREAS,
        on
        April 19, 2005, Falcon Natural Gas Corp., Nevada corporation (the “Company”)
        issued
        a Warrant to Cornell Capital Partners, LP, a Delaware limited liability company
        (“Cornell”)
        to
        purchase one million (1,000,000) fully paid and nonassessable shares of Common
        Stock (as defined herein) of the Company (the “Original
        Warrant”).

      

      WHEREAS,
        this
        Amended and Restated Warrant shall amend and supersede the Original
        Warrant.

       

      The
        Company, hereby certifies that, for Ten United States Dollars ($10.00) and
        other
        good and valuable consideration, the receipt and sufficiency of which are
        hereby
        acknowledged, Cornell, the registered holder hereof or its permitted assigns,
        is
        entitled, subject to the terms set forth below, to purchase from the Company
        upon surrender of this Warrant, at any time or times on or after the date
        hereof, but not after 11:59 P.M. Eastern Time on the Expiration Date one
        million (1,000,000) fully paid and nonassessable shares of Common Stock (as
        defined herein) of the Company (the “Warrant
        Shares”)
        at the
        exercise price per share provided in Section 1(b) below or as subsequently
        adjusted; provided, however, that in no event shall the holder be entitled
        to
        exercise this Warrant for a number of Warrant Shares in excess of that number
        of
        Warrant Shares which, upon giving effect to such exercise, would cause the
        aggregate number of shares of Common Stock beneficially owned by the holder
        and
        its affiliates to exceed 4.99% of the outstanding shares of the Common Stock
        following such exercise, except within sixty (60) days of the Expiration
        Date.
        For purposes of the foregoing proviso, the aggregate number of shares of
        Common
        Stock beneficially owned by the holder and its affiliates shall include the
        number of shares of Common Stock issuable upon exercise of this Warrant with
        respect to which the determination of such proviso is being made, but shall
        exclude shares of Common Stock which would be issuable upon (i) exercise of
        the remaining, unexercised Warrants beneficially owned by the holder and
        its
        affiliates and (ii) exercise or conversion of the unexercised or
        unconverted portion of any other securities of the Company beneficially owned
        by
        the holder and its affiliates (including, without limitation, any convertible
        notes or preferred stock) subject to a limitation on conversion or exercise
        analogous to the limitation contained herein. Except as set forth in the
        preceding sentence, for purposes of this paragraph, beneficial ownership
        shall
        be calculated in accordance with Section 13(d) of the Securities Exchange
        Act of
        1934, as amended. For purposes of this Warrant, 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 (1) the Company’s most recent
        Form 10-QSB or Form 10-KSB, as the case may be, (2) a more recent public
        announcement by the Company or (3) any other notice by the Company or its
        transfer agent setting forth the number of shares of Common Stock outstanding.
        Upon the written request of any holder, the Company shall promptly, but in
        no
        event later than one (1) Business Day following the receipt of such notice,
        confirm in writing to any such 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 exercise of Warrants (as defined
        below)
        by such holder and its affiliates since the date as of which such number
        of
        outstanding shares of Common Stock was reported.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      Section
        1.

       

      (a) This
        Amended and Restated Warrant is the common stock purchase warrant (the
“Warrant”)
        issued
        pursuant to the Amended and Restated Securities Purchase Agreement dated
        the
        date hereof by and between the Company and Cornell (the “Securities
        Purchase Agreement”).

       

      (b) Definitions.
        The
        following words and terms as used in this Warrant shall have the following
        meanings:

       

      (i) “Approved
        Stock Plan”
means
        any employee benefit plan which has been approved by the Board of Directors
        of
        the Company, pursuant to which the Company’s securities may be issued to any
        employee, officer or director for services provided to the Company.

       

      (ii) “Business
        Day”
means
        any day other than Saturday, Sunday or other day on which commercial banks
        in
        the City of New York are authorized or required by law to remain
        closed.

       

      (iii) “Closing
        Bid Price”
means
        the closing bid price of Common Stock as quoted on the Principal Market (as
        reported by Bloomberg Financial Markets (“Bloomberg”)
        through its “Volume at Price” function).

       

      (iv) “Common
        Stock”
means
        (i) the Company’s common stock, par value $.001 per share, and
        (ii) any capital stock into which such Common Stock shall have been changed
        or any capital stock resulting from a reclassification of such Common
        Stock.

       

      (v) “Excluded
        Securities”
means,
        provided such security is issued at a price which is greater than or equal
        to
        the arithmetic average of the Closing Bid Prices of the Common Stock for
        the ten
        (10) consecutive trading days immediately preceding the date of issuance,
        any of
        the following: (a) any issuance by the Company of securities in connection
        with
        a strategic partnership or a joint venture (the primary purpose of which
        is not
        to raise equity capital), (b) any issuance by the Company of securities as
        consideration for a merger or consolidation or the acquisition of a business,
        product, license, or other assets of another person or entity and (c) options
        to
        purchase shares of Common Stock, provided (I) such options are issued after
        the
        date of this Warrant to employees of the Company within thirty (30) days
        of such
        employee’s starting his employment with the Company, and (II) the exercise price
        of such options is not less than the Closing Bid Price of the Common Stock
        on
        the date of issuance of such option.

       

      (vi) “Expiration
        Date”
means
        April 19, 2007.

       

      (vii) “Issuance
        Date”
means
        the date hereof.

       

      (viii) “Options”
means
        any rights, warrants or options to subscribe for or purchase Common Stock
        or
        Convertible Securities. 

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

       

      (ix) “Other
        Securities”
means
        (i) those options and warrants of the Company issued prior to, and
        outstanding on, the Issuance Date of this Warrant, (ii) the shares of Common
        Stock issuable on exercise of such options and warrants, provided such options
        and warrants are not amended after the Issuance Date of this Warrant and
        (iii) the shares of Common Stock issuable upon exercise of this Warrant.

       

      (x) “Person”
means
        an individual, a limited liability company, a partnership, a joint venture,
        a
        corporation, a trust, an unincorporated organization and a government or
        any
        department or agency thereof.

       

      (xi) “Principal
        Market”
means
        the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
        Market, the Nasdaq SmallCap Market, whichever is at the time the principal
        trading exchange or market for such security, or the over-the-counter market
        on
        the electronic bulletin board for such security as reported by Bloomberg
        or, if
        no bid or sale information is reported for such security by Bloomberg, then
        the
        average of the bid prices of each of the market makers for such security
        as
        reported in the “pink sheets” by the National Quotation Bureau,
        Inc.

       

      (xii) “Registration
        Rights” the
        shares of the Company’s Common Stock issuable upon the exercise of this Warrant
        shall have “piggy-back” and demand registration rights.

      (xiii) “Securities
        Act”
means
        the Securities Act of 1933, as amended. 

       

      (xiv) “Warrant”
means
        this Warrant and all Warrants issued in exchange, transfer or replacement
        thereof. 

       

      (xv) “Warrant
        Exercise Price”
shall
        be $0.60 or as subsequently adjusted as provided in Section 8 hereof.

       

      (xvi) “Warrant
        Shares”
means
        the shares of Common Stock issuable at any time upon exercise of this Warrant.
        

       

      (c) Other
        Definitional Provisions. 

       

      (i) Except
        as
        otherwise specified herein, all references herein (A) to the Company shall
        be deemed to include the Company’s successors and (B) to any applicable law
        defined or referred to herein shall be deemed references to such applicable
        law
        as the same may have been or may be amended or supplemented from time to
        time.

       

      (ii) When
        used
        in this Warrant, the words “herein”,
        “hereof”,
        and
“hereunder”
        and
        words of similar import, shall refer to this Warrant as a whole and not to
        any
        provision of this Warrant, and the words “Section”,
        “Schedule”,
        and
“Exhibit”
shall
        refer to Sections of, and Schedules and Exhibits to, this Warrant unless
        otherwise specified. 

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      

       

      (iii) Whenever
        the context so requires, the neuter gender includes the masculine or feminine,
        and the singular number includes the plural, and vice versa. 

       

      Section
        2. Exercise
        of Warrant.
        Subject
        to the terms and conditions hereof, this Warrant may be exercised by the
        holder
        hereof then registered on the books of the Company, pro rata as hereinafter
        provided, at any time on any Business Day on or after the opening of business
        on
        such Business Day, commencing with the first day after the date hereof, and
        prior to 11:59 P.M. Eastern Time on the Expiration Date, by (i) delivery of
        a written notice, in the form of the subscription notice attached as
Exhibit
        A
        hereto
        (the “Exercise
        Notice”),
        of
        such holder’s election to exercise this Warrant, which notice shall specify the
        number of Warrant Shares to be purchased, (ii) payment to the Company of an
        amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
        being purchased, multiplied by the number of Warrant Shares (at the applicable
        Warrant Exercise Price) as to which this Warrant is being exercised (plus
        any
        applicable issue or transfer taxes) (the “Aggregate
        Exercise Price”)
        in
        cash or wire transfer of immediately available funds and (iii) the surrender
        of
        this Warrant (or an indemnification undertaking with respect to this Warrant
        in
        the case of its loss, theft or destruction) to a common carrier for overnight
        delivery to the Company as soon as practicable following such date. In the
        event
        of any exercise of the rights represented by this Warrant in compliance with
        this Section 2(a), the Company shall on the fifth (5th) Business Day
        following the date of receipt of the Exercise Notice, the Aggregate Exercise
        Price and this Warrant (or an indemnification undertaking with respect to
        this
        Warrant in the case of its loss, theft or destruction) and the receipt of
        the
        representations of the holder specified in Section 6 hereof, if requested
        by the
        Company (the “Exercise
        Delivery Documents”),
        and
        if the Common Stock is DTC eligible credit such aggregate number of shares
        of
        Common Stock to which the holder shall be entitled to the holder’s or its
        designee’s balance account with The Depository Trust Company; provided, however,
        if the holder who submitted the Exercise Notice requested physical delivery
        of
        any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
        then the Company shall, on or before the fifth (5th)
        Business Day following receipt of the Exercise Delivery Documents, issue
        and
        surrender to a common carrier for overnight delivery to the address specified
        in
        the Exercise Notice, a certificate, registered in the name of the holder,
        for
        the number of shares of Common Stock to which the holder shall be entitled
        pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
        Exercise Price referred to in clause (ii) above the holder of this Warrant
        shall
        be deemed for all corporate purposes to have become the holder of record
        of the
        Warrant Shares with respect to which this Warrant has been exercised. In
        the
        case of a dispute as to the determination of the Warrant Exercise Price,
        the
        Closing Bid Price or the arithmetic calculation of the Warrant Shares, the
        Company shall promptly issue to the holder the number of Warrant Shares that
        is
        not disputed and shall submit the disputed determinations or arithmetic
        calculations to the holder via facsimile within one (1) Business Day of receipt
        of the holder’s Exercise Notice. If the holder and the Company are unable to
        agree upon the determination of the Warrant Exercise Price or arithmetic
        calculation of the Warrant Shares within one (1) day of such disputed
        determination or arithmetic calculation being submitted to the holder, then
        the
        Company shall immediately submit via facsimile (i) the disputed determination
        of
        the Warrant Exercise Price or the Closing Bid Price to an independent, reputable
        investment banking firm or (ii) the disputed arithmetic calculation of the
        Warrant Shares to its independent, outside accountant. The Company shall
        cause
        the investment banking firm or the accountant, as the case may be, to perform
        the determinations or calculations and notify the Company and the holder
        of the
        results no later than forty-eight (48) hours from the time it receives the
        disputed determinations or calculations. Such investment banking firm’s or
        accountant’s determination or calculation, as the case may be, shall be deemed
        conclusive absent manifest error.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      

       

      (a) Unless
        the rights represented by this Warrant shall have expired or shall have been
        fully exercised, the Company shall, as soon as practicable and in no event
        later
        than five (5) Business Days after any exercise and at its own expense, issue
        a
        new Warrant identical in all respects to this Warrant exercised except it
        shall
        represent rights to purchase the number of Warrant Shares purchasable
        immediately prior to such exercise under this Warrant exercised, less the
        number
        of Warrant Shares with respect to which such Warrant is exercised.

       

      (b) No
        fractional Warrant Shares are to be issued upon any pro rata exercise of
        this
        Warrant, but rather the number of Warrant Shares issued upon such exercise
        of
        this Warrant shall be rounded up or down to the nearest whole
        number.

       

      (c) If
        the
        Company or its Transfer Agent shall fail for any reason or for no reason
        to
        issue to the holder within ten (10) days of receipt of the Exercise
        Delivery Documents, a certificate for the number of Warrant Shares to which
        the
        holder is entitled or to credit the holder’s balance account with The Depository
        Trust Company for such number of Warrant Shares to which the holder is entitled
        upon the holder’s exercise of this Warrant, the Company shall, in addition to
        any other remedies under this Warrant or the Placement Agent Agreement or
        otherwise available to such holder, pay as additional damages in cash to
        such
        holder on each day the issuance of such certificate for Warrant Shares is
        not
        timely effected an amount equal to 0.025% of the product of (A) the sum of
        the
        number of Warrant Shares not issued to the holder on a timely basis and to
        which
        the holder is entitled, and (B) the Closing Bid Price of the Common Stock
        for
        the trading day immediately preceding the last possible date which the Company
        could have issued such Common Stock to the holder without violating this
        Section 2.

       

      (d) If
        within
        ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
        the Company fails to deliver a new Warrant to the holder for the number of
        Warrant Shares to which such holder is entitled pursuant to Section 2(b)
        hereof,
        then, in addition to any other available remedies under this Warrant or the
        Placement Agent Agreement, or otherwise available to such holder, the Company
        shall pay as additional damages in cash to such holder on each day after
        such
        tenth (10th)
        day
        that such delivery of such new Warrant is not timely effected in an amount
        equal
        to 0.25% of the product of (A) the number of Warrant Shares represented by
        the portion of this Warrant which is not being exercised and (B) the
        Closing Bid Price of the Common Stock for the trading day immediately preceding
        the last possible date which the Company could have issued such Warrant to
        the
        holder without violating this Section 2.

       

      Section
        3. Covenants
        as to Common Stock.
        The
        Company hereby covenants and agrees as follows:

       

      (a) This
        Warrant is, and any Warrants issued in substitution for or replacement of
        this
        Warrant will upon issuance be, duly authorized and validly issued.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      

       

      (b) All
        Warrant Shares which may be issued upon the exercise of the rights represented
        by this Warrant will, upon issuance, be validly issued, fully paid and
        nonassessable and free from all taxes, liens and charges with respect to
        the
        issue thereof.

       

      (c) During
        the period within which the rights represented by this Warrant may be exercised,
        the Company will at all times have authorized and reserved at least one hundred
        percent (100%) of the number of shares of Common Stock needed to provide
        for the
        exercise of the rights then represented by this Warrant and the par value
        of
        said shares will at all times be less than or equal to the applicable Warrant
        Exercise Price. If at any time the Company does not have a sufficient number
        of
        shares of Common Stock authorized and available, then the Company shall call
        and
        hold a special meeting of its stockholders within sixty (60) days of that
        time for the sole purpose of increasing the number of authorized shares of
        Common Stock.

       

      (d) If
        at any
        time after the date hereof the Company shall file a registration statement,
        the
        Company shall include the Warrant Shares issuable to the holder, pursuant
        to the
        terms of this Warrant and shall maintain, so long as any other shares of
        Common
        Stock shall be so listed, such listing of all Warrant Shares from time to
        time
        issuable upon the exercise of this Warrant; and the Company shall so list
        on
        each national securities exchange or automated quotation system, as the case
        may
        be, and shall maintain such listing of, any other shares of capital stock
        of the
        Company issuable upon the exercise of this Warrant if and so long as any
        shares
        of the same class shall be listed on such national securities exchange or
        automated quotation system.

       

      (e) The
        Company will not, by amendment of its Articles 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 to be observed or performed
        by it
        hereunder, but will at all times in good faith assist in the carrying out
        of all
        the provisions of this Warrant and in the taking of all such action as may
        reasonably be requested by the holder of this Warrant in order to protect
        the
        exercise privilege of the holder of this Warrant against dilution or other
        impairment, consistent with the tenor and purpose of this Warrant. The Company
        will not increase the par value of any shares of Common Stock receivable
        upon
        the exercise of this Warrant above the Warrant Exercise Price then in effect,
        and (ii) will take all such actions as may be necessary or appropriate in
        order that the Company may validly and legally issue fully paid and
        nonassessable shares of Common Stock upon the exercise of this
        Warrant.

       

      (f) This
        Warrant will be binding upon any entity succeeding to the Company by merger,
        consolidation or acquisition of all or substantially all of the Company’s
        assets.

       

      Section
        4. Taxes.
        The
        Company shall pay any and all taxes, except any applicable withholding, which
        may be payable with respect to the issuance and delivery of Warrant Shares
        upon
        exercise of this Warrant.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

       

      Section
        5. Warrant
        Holder Not Deemed a Stockholder.
        Except
        as otherwise specifically provided herein, no holder, as such, of this Warrant
        shall be entitled to vote or receive dividends or be deemed the holder of
        shares
        of capital stock of the Company for any purpose, nor shall anything contained
        in
        this Warrant be construed to confer upon the holder hereof, as such, any
        of the
        rights of a stockholder of the Company or any right to vote, give or withhold
        consent to any corporate action (whether any reorganization, issue of stock,
        reclassification of stock, consolidation, merger, conveyance or otherwise),
        receive notice of meetings, receive dividends or subscription rights, or
        otherwise, prior to the issuance to the holder of this Warrant of the Warrant
        Shares which he or she is then entitled to receive upon the due exercise
        of this
        Warrant. In addition, nothing contained in this Warrant shall be construed
        as
        imposing any liabilities on such holder to purchase any securities (upon
        exercise of this Warrant or otherwise) or as a stockholder of the Company,
        whether such liabilities are asserted by the Company or by creditors of the
        Company. Notwithstanding this Section 5, the Company will provide the holder
        of
        this Warrant with copies of the same notices and other information given
        to the
        stockholders of the Company generally, contemporaneously with the giving
        thereof
        to the stockholders.

       

      Section
        6. Representations
        of Holder.
        The
        holder of this Warrant, by the acceptance hereof, represents that it is
        acquiring this Warrant and the Warrant Shares for its own account for investment
        only and not with a view towards, or for resale in connection with, the public
        sale or distribution of this Warrant or the Warrant Shares, except pursuant
        to
        sales registered or exempted under the Securities Act; provided, however,
        that
        by making the representations herein, the holder does not agree to hold this
        Warrant or any of the Warrant Shares for any minimum or other specific term
        and
        reserves the right to dispose of this Warrant and the Warrant Shares at any
        time
        in accordance with or pursuant to a registration statement or an exemption
        under
        the Securities Act. The holder of this Warrant further represents, by acceptance
        hereof, that, as of this date, such holder is an “accredited investor” as such
        term is defined in Rule 501(a)(1) of Regulation D promulgated by the
        Securities and Exchange Commission under the Securities Act (an “Accredited
        Investor”).
        Upon
        exercise of this Warrant the holder shall, if requested by the Company, confirm
        in writing, in a form satisfactory to the Company, that the Warrant Shares
        so
        purchased are being acquired solely for the holder’s own account and not as a
        nominee for any other party, for investment, and not with a view toward
        distribution or resale and that such holder is an Accredited Investor. If
        such
        holder cannot make such representations because they would be factually
        incorrect, it shall be a condition to such holder’s exercise of this Warrant
        that the Company receive such other representations as the Company considers
        reasonably necessary to assure the Company that the issuance of its securities
        upon exercise of this Warrant shall not violate any United States or state
        securities laws.

       

      Section
        7. Ownership
        and Transfer.

       

      (a) The
        Company shall maintain at its principal executive offices (or such other
        office
        or agency of the Company as it may designate by notice to the holder hereof),
        a
        register for this Warrant, in which the Company shall record the name and
        address of the person in whose name this Warrant has been issued, as well
        as the
        name and address of each transferee. The Company may treat the person in
        whose
        name any Warrant is registered on the register as the owner and holder thereof
        for all purposes, notwithstanding any notice to the contrary, but in all
        events
        recognizing any transfers made in accordance with the terms of this
        Warrant.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      

       

      Section
        8. Adjustment
        of Warrant Exercise Price and Number of Shares.
        The
        Warrant Exercise Price and the number of shares of Common Stock issuable
        upon
        exercise of this Warrant shall be adjusted from time to time as
        follows:

       

      (a) Adjustment
        of Warrant Exercise Price and Number of Shares upon Issuance of Common
        Stock.
        If and
        whenever on or after the Issuance Date of this Warrant, the Company issues
        or
        sells, or is deemed to have issued or sold, any shares of Common
        Stock (other than (i) Excluded Securities; (ii) shares of Common Stock
        which are issued or deemed to have been issued by the Company in connection
        with
        an Approved Stock Plan or upon exercise or conversion of the Other Securities;
        (iii) shares of Common Stock issued in connection with that certain Standby
        Equity Distribution Agreement dated April 19, 2005 by and between the Company
        and Cornell; or (iv) shares of Common Stock (the “Debenture
        Shares”)
        issued
        pursuant to that certain Amended and Restated Secured Convertible Debenture
        issued to Cornell on the date hereof) for a consideration per share less
        than a
        price (the “Applicable
        Price”)
        equal
        to the Warrant Exercise Price in effect immediately prior to such issuance
        or
        sale, then immediately after such issue or sale the Warrant Exercise Price
        then
        in effect shall be reduced to an amount equal to such consideration per share.
        Upon each such adjustment of the Warrant Exercise Price hereunder, the number
        of
        Warrant Shares issuable upon exercise of this Warrant shall be adjusted to
        the
        number of shares determined by multiplying the Warrant Exercise Price in
        effect
        immediately prior to such adjustment by the number of Warrant Shares issuable
        upon exercise of this Warrant immediately prior to such adjustment and dividing
        the product thereof by the Warrant Exercise Price resulting from such
        adjustment.

       

      (b) Effect
        on Warrant Exercise Price of Certain Events.
        For
        purposes of determining the adjusted Warrant Exercise Price under Section
        8(a)
        above, the following shall be applicable:

       

      (i) Issuance
        of Options.
        If
        after the date hereof, the Company in any manner grants any Options and the
        lowest price per share for which one share of Common Stock is issuable upon
        the
        exercise of any such Option or upon conversion or exchange of any convertible
        securities issuable upon exercise of any such Option is less than the Applicable
        Price, then such share of Common Stock shall be deemed to be outstanding
        and to
        have been issued and sold by the Company at the time of the granting or sale
        of
        such Option for such price per share. For purposes of this Section 8(b)(i),
        the
        lowest price per share for which one share of Common Stock is issuable upon
        exercise of such Options or upon conversion or exchange of such Convertible
        Securities shall be equal to the sum of the lowest amounts of consideration
        (if
        any) received or receivable by the Company with respect to any one share
        of
        Common Stock upon the granting or sale of the Option, upon exercise of the
        Option or upon conversion or exchange of any convertible security issuable
        upon
        exercise of such Option. No further adjustment of the Warrant Exercise Price
        shall be made upon the actual issuance of such Common Stock or of such
        convertible securities upon the exercise of such Options or upon the actual
        issuance of such Common Stock upon conversion or exchange of such convertible
        securities.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      

       

      (ii) Issuance
        of Convertible Securities.
        If the
        Company in any manner issues or sells any convertible securities and the
        lowest
        price per share for which one share of Common Stock is issuable upon the
        conversion or exchange thereof is less than the Applicable Price, other than
        the
        Debenture Shares, then such share of Common Stock shall be deemed to be
        outstanding and to have been issued and sold by the Company at the time of
        the
        issuance or sale of such convertible securities for such price per share.
        For
        the purposes of this Section 8(b)(ii), the lowest price per share for which
        one share of Common Stock is issuable upon such conversion or exchange shall
        be
        equal to the sum of the lowest amounts of consideration (if any) received
        or
        receivable by the Company with respect to one share of Common Stock upon
        the
        issuance or sale of the convertible security and upon conversion or exchange
        of
        such convertible security. No further adjustment of the Warrant Exercise
        Price
        shall be made upon the actual issuance of such Common Stock upon conversion
        or
        exchange of such convertible securities, and if any such issue or sale of
        such
        convertible securities is made upon exercise of any Options for which adjustment
        of the Warrant Exercise Price had been or are to be made pursuant to other
        provisions of this Section 8(b), no further adjustment of the Warrant Exercise
        Price shall be made by reason of such issue or sale. 

       

      (iii) Change
        in Option Price or Rate of Conversion.
        If the
        purchase price provided for in any Options, the additional consideration,
        if
        any, payable upon the issue, conversion or exchange of any convertible
        securities, or the rate at which any convertible securities are convertible
        into
        or exchangeable for Common Stock changes at any time, the Warrant Exercise
        Price
        in effect at the time of such change shall be adjusted to the Warrant Exercise
        Price which would have been in effect at such time had such Options or
        convertible securities provided for such changed purchase price, additional
        consideration or changed conversion rate, as the case may be, at the time
        initially granted, issued or sold and the number of Warrant Shares issuable
        upon
        exercise of this Warrant shall be correspondingly readjusted. For purposes
        of
        this Section 8(b)(iii), if the terms of any Option or convertible security
        that
        was outstanding as of the Issuance Date of this Warrant are changed in the
        manner described in the immediately preceding sentence, then such Option
        or
        convertible security and the Common Stock deemed issuable upon exercise,
        conversion or exchange thereof shall be deemed to have been issued as of
        the
        date of such change. No adjustment pursuant to this Section 8(b) shall be
        made if such adjustment would result in an increase of the Warrant Exercise
        Price then in effect.

       

      (c) Effect
        on Warrant Exercise Price of Certain Events.
        For
        purposes of determining the adjusted Warrant Exercise Price under
        Sections 8(a) and 8(b), the following shall be applicable:

       

      (i) Calculation
        of Consideration Received.
        If any
        Common Stock, Options or convertible securities are issued or sold or deemed
        to
        have been issued or sold for cash, the consideration received therefore will
        be
        deemed to be the net amount received by the Company therefore. If any Common
        Stock, Options or convertible securities are issued or sold for a consideration
        other than cash, the amount of such consideration received by the Company
        will
        be the fair value of such consideration, except where such consideration
        consists of marketable securities, in which case the amount of consideration
        received by the Company will be the market price of such securities on the
        date
        of receipt of such securities. If any Common Stock, Options or convertible
        securities are issued to the owners of the non-surviving entity in connection
        with any merger in which the Company is the surviving entity, the amount
        of
        consideration therefore will be deemed to be the fair value of such portion
        of
        the net assets and business of the non-surviving entity as is attributable
        to
        such Common Stock, Options or convertible securities, as the case may be.
        The
        fair value of any consideration other than cash or securities will be determined
        jointly by the Company and the holders of Warrants representing at least
        two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
        then
        outstanding. If such parties are unable to reach agreement within ten (10)
        days after the occurrence of an event requiring valuation (the “Valuation
        Event”),
        the
        fair value of such consideration will be determined within five (5) Business
        Days after the tenth (10th)
        day
        following the Valuation Event by an independent, reputable appraiser jointly
        selected by the Company and the holders of Warrants representing at least
        two-thirds (b) of the Warrant Shares issuable upon exercise of the Warrants
        then
        outstanding. The determination of such appraiser shall be final and binding
        upon
        all parties and the fees and expenses of such appraiser shall be borne jointly
        by the Company and the holders of Warrants.

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

       

      (ii) Integrated
        Transactions.
        In case
        any Option is issued in connection with the issue or sale of other securities
        of
        the Company, together comprising one integrated transaction in which no specific
        consideration is allocated to such Options by the parties thereto, the Options
        will be deemed to have been issued for a consideration of $.01.

       

      (iii) Treasury
        Shares.
        The
        number of shares of Common Stock outstanding at any given time does not include
        shares owned or held by or for the account of the Company, and the disposition
        of any shares so owned or held will be considered an issue or sale of Common
        Stock.

       

      (iv) Record
        Date.
        If the
        Company takes a record of the holders of Common Stock for the purpose of
        entitling them (1) to receive a dividend or other distribution payable in
        Common Stock, Options or in convertible securities or (2) to subscribe for
        or purchase Common Stock, Options or convertible securities, then such record
        date will be deemed to be the date of the issue or sale of the shares of
        Common
        Stock deemed to have been issued or sold upon the declaration of such dividend
        or the making of such other distribution or the date of the granting of such
        right of subscription or purchase, as the case may be.

       

      (d) Adjustment
        of Warrant Exercise Price upon Subdivision or Combination of Common
        Stock.
        If the
        Company at any time after the date of issuance of this Warrant subdivides
        (by
        any stock split, stock dividend, recapitalization or otherwise) one or more
        classes of its outstanding shares of Common Stock into a greater number of
        shares, any Warrant Exercise Price in effect immediately prior to such
        subdivision will be proportionately reduced and the number of shares of Common
        Stock obtainable upon exercise of this Warrant will be proportionately
        increased. If the Company at any time after the date of issuance of this
        Warrant
        combines (by combination, reverse stock split or otherwise) one or more classes
        of its outstanding shares of Common Stock into a smaller number of shares,
        any
        Warrant Exercise Price in effect immediately prior to such combination will
        be
        proportionately increased and the number of Warrant Shares issuable upon
        exercise of this Warrant will be proportionately decreased. Any adjustment
        under
        this Section 8(d) shall become effective at the close of business on the
        date the subdivision or combination becomes effective.

       

      (e) Distribution
        of Assets.
        If the
        Company shall declare or make any dividend or other distribution of its assets
        (or rights to acquire its assets) to holders 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 or other similar transaction)
        (a
“Distribution”),
        at
        any time after the issuance of this Warrant, then, in each such
        case:

       

      (i) any
        Warrant Exercise Price in effect immediately prior to the close of business
        on
        the record date fixed for the determination of holders of Common Stock
        entitled to
        receive the Distribution shall be reduced, effective as of the close of business
        on such record date, to a price determined by multiplying such Warrant Exercise
        Price by a fraction of which (A) the numerator shall be the Closing Sale
        Price
        of the Common Stock on the trading day immediately preceding such record
        date
        minus the value of the Distribution (as determined in good faith by the
        Company’s Board of Directors) applicable to one share of Common Stock, and (B)
        the denominator shall be the Closing Sale Price of the Common Stock on the
        trading day immediately preceding such record date; and

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

       

      (ii) either
        (A) the number of Warrant Shares obtainable upon exercise of this Warrant
        shall
        be increased to a number of shares equal to the number of shares of Common
        Stock
        obtainable immediately prior to the close of business on the record date
        fixed
        for the determination of holders of Common Stock entitled to receive the
        Distribution multiplied by the reciprocal of the fraction set forth in the
        immediately preceding clause (i), or (B) in the event that the Distribution
        is
        of common stock of a company whose common stock is traded on a national
        securities exchange or a national automated quotation system, then the holder
        of
        this Warrant shall receive an additional warrant to purchase Common Stock,
        the
        terms of which shall be identical to those of this Warrant, except that such
        warrant shall be exercisable into the amount of the assets that would have
        been
        payable to the holder of this Warrant pursuant to the Distribution had the
        holder exercised this Warrant immediately prior to such record date and with
        an
        exercise price equal to the amount by which the exercise price of this Warrant
        was decreased with respect to the Distribution pursuant to the terms of the
        immediately preceding clause (i).

       

      (f) Certain
        Events.
        If any
        event occurs of the type contemplated by the provisions of this Section 8
        but not expressly provided for by such provisions (including, without
        limitation, the granting of stock appreciation rights, phantom stock rights
        or
        other rights with equity features), then the Company’s Board of Directors will
        make an appropriate adjustment in the Warrant Exercise Price and the number
        of
        shares of Common Stock obtainable upon exercise of this Warrant so as to
        protect
        the rights of the holders of the Warrants; provided, except as set forth
        in
        section 8(d),that no such adjustment pursuant to this Section 8(f) will increase
        the Warrant Exercise Price or decrease the number of shares of Common Stock
        obtainable as otherwise determined pursuant to this Section 8.

       

      (g) Notices.

       

      (i) Immediately
        upon any adjustment of the Warrant Exercise Price, the Company will give
        written
        notice thereof to the holder of this Warrant, setting forth in reasonable
        detail, and certifying, the calculation of such adjustment.

       

      (ii) The
        Company will give written notice to the holder of this Warrant at least ten
        (10)
        days prior to the date on which the Company closes its books or takes a record
        (A) with respect to any dividend or distribution upon the Common Stock,
        (B) with respect to any pro rata subscription offer to holders of Common
        Stock or (C) for determining rights to vote with respect to any Organic
        Change (as defined below), dissolution or liquidation, provided that such
        information shall be made known to the public prior to or in conjunction
        with
        such notice being provided to such holder.

       

      (iii) The
        Company will also give written notice to the holder of this Warrant at least
        ten
        (10) days prior to the date on which any Organic Change, dissolution or
        liquidation will take place, provided that such information shall be made
        known
        to the public prior to or in conjunction with such notice being provided
        to such
        holder.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      

       

      Section
        9. Purchase
        Rights; Reorganization, Reclassification, Consolidation, Merger or
        Sale.

       

      (a) In
        addition to any adjustments pursuant to Section 8 above, if at any time the
        Company grants, issues or sells any Options, Convertible Securities or rights
        to
        purchase stock, warrants, securities or other property pro rata to the record
        holders of any class of Common Stock (the “Purchase
        Rights”),
        then
        the holder of this Warrant will be entitled to acquire, upon the terms
        applicable to such Purchase Rights, the aggregate Purchase Rights which such
        holder could have acquired if such holder had held the number of shares of
        Common Stock acquirable upon complete exercise of this Warrant immediately
        before the date on which a record is taken for the grant, issuance or sale
        of
        such Purchase Rights, or, if no such record is taken, the date as of which
        the
        record holders of Common Stock are to be determined for the grant, issue
        or sale
        of such Purchase Rights.

       

      (b) Any
        recapitalization, reorganization, reclassification, consolidation, merger,
        sale
        of all or substantially all of the Company’s assets to another Person or other
        transaction in each case which is effected in such a way that holders of
        Common
        Stock are entitled to receive (either directly or upon subsequent liquidation)
        stock, securities or assets with respect to or in exchange for Common Stock
        is
        referred to herein as an “Organic
        Change.”
Prior
        to the consummation of any (i) sale of all or substantially all of the Company’s
        assets to an acquiring Person or (ii) other Organic Change following which
        the
        Company is not a surviving entity, the Company will secure from the Person
        purchasing such assets or the successor resulting from such Organic Change
        (in
        each case, the “Acquiring
        Entity”)
        a
        written agreement (in form and substance satisfactory to the holders of Warrants
        representing at least two-thirds (iii) of the Warrant Shares issuable upon
        exercise of the Warrants then outstanding) to deliver to each holder of Warrants
        in exchange for such Warrants, a security of the Acquiring Entity evidenced
        by a
        written instrument substantially similar in form and substance to this Warrant
        and satisfactory to the holders of the Warrants (including an adjusted warrant
        exercise price equal to the value for the Common Stock reflected by the terms
        of
        such consolidation, merger or sale, and exercisable for a corresponding number
        of shares of Common Stock acquirable and receivable upon exercise of the
        Warrants without regard to any limitations on exercise, if the value so
        reflected is less than any Applicable Warrant Exercise Price immediately
        prior
        to such consolidation, merger or sale). Prior to the consummation of any
        other
        Organic Change, the Company shall make appropriate provision (in form and
        substance satisfactory to the holders of Warrants representing a
        majority of
        the
        Warrant Shares issuable upon exercise of the Warrants then outstanding) to
        insure that each of the holders of the Warrants will thereafter have the
        right
        to acquire and receive in lieu of or in addition to (as the case may be)
        the
        Warrant Shares immediately theretofore issuable and receivable upon the exercise
        of such holder’s Warrants (without regard to any limitations on exercise),
        such shares of stock, securities or assets that would have been issued or
        payable in such Organic Change with respect to or in exchange for the number
        of
        Warrant Shares which would have been issuable and receivable upon the exercise
        of such holder’s Warrant as of the date of such Organic Change (without taking
        into account any limitations or restrictions on the exercisability of this
        Warrant).

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      

       

      Section
        10. Lost,
        Stolen, Mutilated or Destroyed Warrant.
        If this
        Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
        on
        receipt of an indemnification undertaking (or, in the case of a mutilated
        Warrant, the Warrant), issue a new Warrant of like denomination and tenor
        as
        this Warrant so lost, stolen, mutilated or destroyed.

       

      Section
        11. Notice.
        Any
        notices, consents, waivers or other communications required or permitted
        to be
        given under the terms of this Warrant must be in writing and will be deemed
        to
        have been delivered: (i) upon receipt, when delivered personally;
        (ii) upon receipt, when sent by facsimile (provided confirmation of receipt
        is received by the sending party transmission is mechanically or electronically
        generated and kept on file by the sending party); or (iii) one Business Day
        after deposit with a nationally recognized overnight delivery service, in
        each
        case properly addressed to the party to receive the same. The addresses and
        facsimile numbers for such communications shall be:

       

      
        	
                If
                  to Cornell:

              	
                Cornell
                  Capital Partners, LP

              
	 	
                101
                  Hudson Street, Suite 3700

              
	 	
                Jersey
                  City, NJ 07302

              
	 	
                Attention: Mark
                  A. Angelo

              
	 	
                Telephone: (201)
                  985-8300

              
	 	
                Facsimile:
                   (201)
                  985-8744

              
	 	 
	
                With
                  Copy to:

              	
                David
                  Gonzalez, Esq.

              
	 	
                101
                  Hudson Street - Suite 3700

              
	 	
                Jersey
                  City, New Jersey 07302

              
	 	
                Telephone: (201)
                  985-8300

              
	 	
                Facsimile: (201)
                  985-8266

              
	 	 
	
                If
                  to the Company, to:

              	
                Falcon
                  Natural Gas Corporation

              
	 	
                Westchase
                  Center

              
	 	
                2500
                  Citywest Blvd - Suite 300

              
	 	
                Houston,
                  TX 77019

              
	 	
                Attention: Massimiliano
                  Pozzoni

              
	 	
                Telephone: (832)
                  476-8699

              
	 	 
	
                With
                  a copy to:

              	
                Kirkpatrick
                  & Lockhart Nicholson Graham LLP

              
	 	
                201
                  South Biscayne Boulevard - Suite 2000

              
	 	
                Miami,
                  FL 33131-2399

              
	 	
                Attention: Clayton
                  E. Parker, Esq.

              
	 	
                Telephone: (305)
                  539-3300

              
	 	
                Facsimile: (305)
                  358-7095

              

      

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      

      If
        to a
        holder of this Warrant, to it at the address and facsimile number set forth
        on
Exhibit C
        hereto,
        with copies to such holder’s representatives as set forth on Exhibit C,
        or at
        such other address and facsimile as shall be delivered to the Company upon
        the
        issuance or transfer of this Warrant. Each party shall provide five days’ prior
        written notice to the other party of any change in address or facsimile number.
        Written confirmation of receipt (A) given by the recipient of such notice,
        consent, facsimile, waiver or other communication, (or (B) provided by a
        nationally recognized overnight delivery service shall be rebuttable evidence
        of
        personal service, receipt by facsimile or receipt from a nationally recognized
        overnight delivery service in accordance with clause (i), (ii) or (iii) above,
        respectively.

       

      Section
        12. Date.
        The
        date of this Warrant is set forth on page 1 hereof. This Warrant, in all
        events, shall be wholly void and of no effect after the close of business
        on the
        Expiration Date, except that notwithstanding any other provisions hereof,
        the
        provisions of Section 8(b) shall continue in full force and effect after
        such date as to any Warrant Shares or other securities issued upon the exercise
        of this Warrant.

       

      Section
        13. Amendment
        and Waiver.
        Except
        as otherwise provided herein, the provisions of the Warrants may be amended
        and
        the Company may take any action herein prohibited, or omit to perform any
        act
        herein required to be performed by it, only if the Company has obtained the
        written consent of the holders of Warrants representing at least two-thirds
        of
        the Warrant Shares issuable upon exercise of the Warrants then outstanding;
        provided that, except for Section 8(d),no such action may increase the Warrant
        Exercise Price or decrease the number of shares or class of stock obtainable
        upon exercise of any Warrant without the written consent of the holder of
        such
        Warrant.

       

      Section
        14. Descriptive
        Headings; Governing Law.
        The
        descriptive headings of the several sections and paragraphs of this Warrant
        are
        inserted for convenience only and do not constitute a part of this Warrant.
        The
        corporate laws of the State of New Jersey shall govern all issues concerning
        the
        relative rights of the Company and its stockholders. All other questions
        concerning the construction, validity, enforcement and interpretation of
        this
        Agreement shall be governed by the internal laws of the State of New Jersey,
        without giving effect to any choice of law or conflict of law provision or
        rule
        (whether of the State of New Jersey or any other jurisdictions) that would
        cause
        the application of the laws of any jurisdictions other than the State of
        New
        Jersey. Each party hereby irrevocably submits to the exclusive jurisdiction
        of
        the state and federal courts sitting in Hudson County and the United States
        District Court for the District of New Jersey, for the adjudication of any
        dispute hereunder or in connection herewith or therewith, or with any
        transaction contemplated hereby or discussed herein, 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 brought in an inconvenient forum or that
        the
        venue of such suit, action or proceeding is improper. 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 to
        such
        party at the address for such 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 manner permitted by law. 

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      

       

      Section
        15. Waiver
        of Jury Trial.
        AS
        A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
        PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
        RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
        ASSOCIATED WITH THIS TRANSACTION.

       

      IN
        WITNESS WHEREOF,
        the
        Company has caused this Amended and Restated Warrant to be signed as of the
        date
        first set forth above.

       

      
        	 	
                FALCON
                  NATURAL GAS CORP.

              
	 	 
	 	
                By: /s/
                  Massimiliano Pozzoni  

              
	 	
                Name: Massimiliano
                  Pozzoni

              
	 	
                Title: Vice
                  President

              
	 	 
	 	 

      

      

      

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

       

      EXHIBIT
        A TO WARRANT

       

      EXERCISE
        NOTICE

       

      TO
        BE EXECUTED 

       

      BY
        THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

       

      FALCON
        NATURAL GAS CORP.

       

      The
        undersigned holder hereby exercises the right to purchase _________________
        of
        the shares of Common Stock (“Warrant
        Shares”)
        of
        Falcon Natural Gas Corp., a Nevada corporation (the “Company”),
        evidenced by the attached Amended and Restated Warrant (the “Warrant”).
        Capitalized terms used herein and not otherwise defined shall have the
        respective meanings set forth in the Warrant.

       

      1. Form
        of Warrant Exercise Price.
        The
        Holder intends that payment of the Warrant Exercise Price shall be made as
        a
“Cash
        Exercise”
with
        respect to ______________ Warrant Shares.

       

      2. Payment
        of Warrant Exercise Price.
        The
        holder shall pay the sum of $______________ to the Company in accordance
        with
        the terms of the Warrant. 

       

      3. Delivery
        of Warrant Shares.
        The
        Company shall deliver to the holder _________
        Warrant
        Shares in accordance with the terms of the Warrant. 

       

      Date:
        _______________ __, ______

      

      

      Name
        of
        Registered Holder

      

      By:_______________________     

      Name:
        _____________________

      Title:
        ______________________

      

      

      

      

      

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      

       

      EXHIBIT
        B TO WARRANT

       

       

      FORM
        OF WARRANT POWER

       

      FOR
        VALUE RECEIVED,
        the
        undersigned does hereby assign and transfer to ________________, Federal
        Identification No. __________, a warrant to purchase ____________ shares of
        the capital stock of Falcon Natural Gas Corp., a Nevada corporation, represented
        by warrant certificate no. _____, standing in the name of the undersigned
        on the books of said corporation. The undersigned does hereby irrevocably
        constitute and appoint ______________, attorney to transfer the warrants
        of said
        corporation, with full power of substitution in the premises.

       

      
        	
                Dated:      

              	 ________________________________
	 	 
	 	
                By:      

              
	 	
                Name:      

              
	 	
                Title:      

              
	 	 

      

      

      

      

      
        
           

        

        
          B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00096-of-00352.parquet"}]]