Document:

Common Stock Purchase Warrant

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO NESS ENERGY INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase 2,932,551 shares of Common Stock of Ness Energy International,
                Inc. (subject to adjustment as provided
                herein)

            

    

    

    CLASS
      A COMMON STOCK PURCHASE WARRANT

     

    No. 2006-A-001      Issue
      Date: May 31, 2006

     

    NESS
      ENERGY INTERNATIONAL, INC., a corporation organized under the laws of the State
      of Washington (the “Company”), hereby certifies that, for value received, ALPHA
      CAPITAL AKTIENGESELLSCHAFT, Pradafant 7, 9490 Furstentums, Vaduz, Lichtenstein,
      Fax: 011-42-32323196, or
      its
      assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company at any time after the Issue Date until 5:00 p.m.,
      E.S.T on the third (3rd)
      anniversary after the Issue Date, which may be extended as described in Section
      9 hereof (the “Expiration Date”), 2,932,551 fully paid and nonassessable shares
      of Common Stock at a per share purchase price of $_____ [108%
      of the average of the volume weighted average price of the Common Stock as
      reported by Bloomberg L.P. for the five trading days preceding the Closing
      Date].
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price without
      the consent of the Holder. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Subscription Agreement
      (the “Subscription
      Agreement”),
      dated
      May 31, 2006, entered into by the Company and Holders of the
      Warrants.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall include Ness Energy International, Inc. and any corporation
      which shall succeed or assume the obligations of Ness Energy International,
      Inc.
      hereunder. 

     

    (b) The
      term
“Common Stock” includes (a) the Company’s Common Stock, no par value per
      share, as authorized on the date of the Subscription Agreement, and (b) any
      other securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 5 or otherwise. 

     

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO NESS ENERGY INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase 733,138 shares of Common Stock of Ness Energy International,
                Inc. (subject to adjustment as provided
                herein)

            

    

    

    CLASS
      A COMMON STOCK PURCHASE WARRANT

     

    No. 2006-A-002      Issue
      Date: May 31, 2006

     

    NESS
      ENERGY INTERNATIONAL, INC., a corporation organized under the laws of the State
      of Washington (the “Company”), hereby certifies that, for value received,
      IROQUOIS MASTER FUND LTD., 641 Lexington Avenue, New York, NY 10022,
or
      its
      assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company at any time after the Issue Date until 5:00 p.m.,
      E.S.T on the third (3rd)
      anniversary after the Issue Date, which may be extended as described in Section
      9 hereof (the “Expiration Date”), 733,138 fully paid and nonassessable shares of
      Common Stock at a per share purchase price of $_____ [108%
      of the average of the volume weighted average price of the Common Stock as
      reported by Bloomberg L.P. for the five trading days preceding the Closing
      Date].
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price without
      the consent of the Holder. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Subscription Agreement
      (the “Subscription
      Agreement”),
      dated
      May 31, 2006, entered into by the Company and Holders of the
      Warrants.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall include Ness Energy International, Inc. and any corporation
      which shall succeed or assume the obligations of Ness Energy International,
      Inc.
      hereunder. 

     

    (b) The
      term
“Common Stock” includes (a) the Company’s Common Stock, no par value per
      share, as authorized on the date of the Subscription Agreement, and (b) any
      other securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 5 or otherwise. 

     

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO NESS ENERGY INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase 1,466,276 shares of Common Stock of Ness Energy International,
                Inc. (subject to adjustment as provided
                herein)

            

    

    

    CLASS
      A COMMON STOCK PURCHASE WARRANT

     

    No. 2006-A-003      Issue
      Date: May 31, 2006

     

    NESS
      ENERGY INTERNATIONAL, INC., a corporation organized under the laws of the State
      of Washington (the “Company”), hereby certifies that, for value received,
      BRISTOL INVESTMENT FUND, LTD., Caledonian House, Jennett Street, George Town,
      Grand Cayman, Cayman Islands, Fax: (310) 696-0334, or
      its
      assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company at any time after the Issue Date until 5:00 p.m.,
      E.S.T on the third (3rd)
      anniversary after the Issue Date, which may be extended as described in Section
      9 hereof (the “Expiration Date”), 1,466,276 fully paid and nonassessable shares
      of Common Stock at a per share purchase price of $_____ [108%
      of the average of the volume weighted average price of the Common Stock as
      reported by Bloomberg L.P. for the five trading days preceding the Closing
      Date].
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price without
      the consent of the Holder. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Subscription Agreement
      (the “Subscription
      Agreement”),
      dated
      May 31, 2006, entered into by the Company and Holders of the
      Warrants.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall include Ness Energy International, Inc. and any corporation
      which shall succeed or assume the obligations of Ness Energy International,
      Inc.
      hereunder. 

     

    (b) The
      term
“Common Stock” includes (a) the Company’s Common Stock, no par value per
      share, as authorized on the date of the Subscription Agreement, and (b) any
      other securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 5 or otherwise. 

     

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
      AND
      THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
      OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO NESS ENERGY INTERNATIONAL, INC. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    
      	 	
              Right
                to Purchase 1,466,276 shares of Common Stock of Ness Energy International,
                Inc. (subject to adjustment as provided
                herein)

            

    

    

    CLASS
      A COMMON STOCK PURCHASE WARRANT

     

    No. 2006-A-004      Issue
      Date: May 31, 2006

     

    NESS
      ENERGY INTERNATIONAL, INC., a corporation organized under the laws of the State
      of Washington (the “Company”), hereby certifies that, for value received, ELLIS
      INTERNATIONAL LTD., 53rd
      Street
      Urbanizacion Obarrio, Swiss Tower, 16th
      Floor,
      Panama, Republic of Panama, Fax: (516) 887-8990, or
      its
      assigns (the “Holder”), is entitled, subject to the terms set forth below, to
      purchase from the Company at any time after the Issue Date until 5:00 p.m.,
      E.S.T on the third (3rd)
      anniversary after the Issue Date, which may be extended as described in Section
      9 hereof (the “Expiration Date”), 1,466,276 fully
      paid and nonassessable shares of Common Stock at a per share purchase price
      of
      $_____ [108%
      of the average of the volume weighted average price of the Common Stock as
      reported by Bloomberg L.P. for the five trading days preceding the Closing
      Date].
      The
      aforedescribed purchase price per share, as adjusted from time to time as herein
      provided, is referred to herein as the “Purchase Price.” The number and
      character of such shares of Common Stock and the Purchase Price are subject
      to
      adjustment as provided herein. The Company may reduce the Purchase Price without
      the consent of the Holder. Capitalized terms used and not otherwise defined
      herein shall have the meanings set forth in that certain Subscription Agreement
      (the “Subscription
      Agreement”),
      dated
      May 31, 2006, entered into by the Company and Holders of the
      Warrants.

    

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings: 

     

    (a) The
      term
“Company” shall include Ness Energy International, Inc. and any corporation
      which shall succeed or assume the obligations of Ness Energy International,
      Inc.
      hereunder. 

     

    (b) The
      term
“Common Stock” includes (a) the Company’s Common Stock, no par value per
      share, as authorized on the date of the Subscription Agreement, and (b) any
      other securities into which or for which any of the securities described in
      (a) may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (c) The
      term
“Other Securities” refers to any stock (other than Common Stock) and other
      securities of the Company or any other person (corporate or otherwise) which
      the
      holder of the Warrant at any time shall be entitled to receive, or shall have
      received, on the exercise of the Warrant, in lieu of or in addition to Common
      Stock, or which at any time shall be issuable or shall have been issued in
      exchange for or in replacement of Common Stock or Other Securities pursuant
      to
      Section 5 or otherwise. 

     

    (d) The
      term
“Warrant Shares” shall mean the Common Stock issuable upon exercise of this
      Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1. Exercise
      of Warrant.

     

    1.1. Number
      of Shares Issuable upon Exercise.
      From
      and after the Issue Date through and including the Expiration Date, the Holder
      hereof shall be entitled to receive, upon exercise of this Warrant in whole
      in
      accordance with the terms of subsection 1.2 or upon exercise of this
      Warrant in part in accordance with subsection 1.3, shares of Common Stock
      of the Company, subject to adjustment pursuant to Section 4.

     

    1.2. Full
      Exercise.
      This
      Warrant may be exercised in full by the Holder hereof by delivery of an original
      or facsimile copy of the form of subscription attached as Exhibit A hereto
      (the “Subscription Form”) duly executed by such Holder and surrender of the
      original Warrant within four (4) days of exercise, to the Company at its
      principal office or at the office of its Warrant Agent (as provided
      hereinafter), accompanied by payment, in cash, wire transfer or by certified
      or
      official bank check payable to the order of the Company, in the amount obtained
      by multiplying the number of shares of Common Stock for which this Warrant
      is
      then exercisable by the Purchase Price then in effect. 

     

    1.3. Partial
      Exercise.
      This
      Warrant may be exercised in part (but not for a fractional share) by surrender
      of this Warrant in the manner and at the place provided in subsection 1.2
      except that the amount payable by the Holder on such partial exercise shall
      be
      the amount obtained by multiplying (a) the number of whole shares of Common
      Stock designated by the Holder in the Subscription Form by (b) the Purchase
      Price then in effect. On any such partial exercise, the Company, at its expense,
      will forthwith issue and deliver to or upon the order of the Holder hereof
      a new
      Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon
      payment by such Holder of any applicable transfer taxes) may request, the whole
      number of shares of Common Stock for which such Warrant may still be
      exercised.

     

    1.4. Fair
      Market Value.
      Fair
      Market Value of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean: 

     

    (a) If
      the
      Company’s Common Stock is traded on an exchange or is quoted on the National
      Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”), National
      Market System, the NASDAQ Capital Market or the American Stock Exchange, LLC,
      then the closing or last sale price, respectively, reported for the last
      business day immediately preceding the Determination Date;

     

    (b) If
      the
      Company’s Common Stock is not traded on an exchange or on the NASDAQ National
      Market System, the NASDAQ Capital Market or the American Stock Exchange, Inc.,
      but is traded in the over-the-counter market, then the average of the closing
      bid and ask prices reported for the last business day immediately preceding
      the
      Determination Date;

     

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree, or in the absence of such
      an
      agreement, by arbitration in accordance with the rules then standing of the
      American Arbitration Association, before a single arbitrator to be chosen from
      a
      panel of persons qualified by education and training to pass on the matter
      to be
      decided; or

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then
      issuable upon exercise of all of the Warrants are outstanding at the
      Determination Date.

     

    1.5. Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Warrant, upon the request
      of
      the Holder hereof acknowledge in writing its continuing obligation to afford
      to
      such Holder any rights to which such Holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the Holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such Holder any such
      rights.

     

    1.6. Trustee
      for Warrant Holders.
      In the
      event that a qualified bank or trust company shall have been appointed as
      trustee for the Holder of the Warrants pursuant to Subsection 3.2, such
      bank or trust company shall have all the powers and duties of a warrant agent
      (as hereinafter described) and shall accept, in its own name for the account
      of
      the Company or such successor person as may be entitled thereto, all amounts
      otherwise payable to the Company or such successor, as the case may be, on
      exercise of this Warrant pursuant to this Section 1. 

     

      1.7 Delivery
      of Stock Certificates, etc. on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder hereof as the record owner
      of
      such shares as of the close of business on the date on which this Warrant shall
      have been surrendered and payment made for such shares as aforesaid. As soon
      as
      practicable after the exercise of this Warrant in full or in part, and in any
      event within three (3) business
      days
      thereafter, the Company at its expense (including the payment by it of any
      applicable issue taxes) will cause to be issued in the name of and delivered
      to
      the Holder hereof, or as such Holder (upon payment by such Holder of any
      applicable transfer taxes) may direct in compliance with applicable securities
      laws, a certificate or certificates for the number of duly and validly issued,
      fully paid and nonassessable shares of Common Stock (or Other Securities) to
      which such Holder shall be entitled on such exercise, plus, in lieu of any
      fractional share to which such Holder would otherwise be entitled, cash equal
      to
      such fraction multiplied by the then Fair Market Value of one full share of
      Common Stock, together with any other stock or other securities and property
      (including cash, where applicable) to which such Holder is entitled upon such
      exercise pursuant to Section 1 or otherwise. The Company understands that a
      delay in the delivery of the Warrant Shares after the Warrant Share Delivery
      Date could result in economic loss to the Holder. As compensation to the Holder
      for such loss, the Company agrees to pay (as liquidated damages and not as
      a
      penalty) to the Holder for late issuance of Warrant Shares upon exercise of
      this
      Warrant the amount of $100 per business day after the Warrant Share Delivery
      Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant
      is exercised which are not timely delivered. The Company shall pay any payments
      incurred under this Section in immediately available funds upon demand.
      Furthermore, in addition to any other remedies which may be available to the
      Holder, in the event that the Company fails for any reason to effect delivery
      of
      the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke
      all
      or part of the relevant Warrant exercise by delivery of a notice to such effect
      to the Company whereupon the Company and the Holder shall each be restored
      to
      their respective positions immediately prior to the exercise of the relevant
      portion of this Warrant, except that the liquidated damages described above
      shall be payable through the date notice of revocation or rescission is given
      to
      the Company.

     

    2. Cashless
      Exercise.

     

    (a) Except
      as
      described below, if a Registration Statement (as defined in the Subscription
      Agreement) (“Registration Statement”) is effective and the Holder may sell its
      shares of Common Stock upon exercise hereof pursuant to the Registration
      Statement, this Warrant may be exercisable in whole or in part for cash only
      as
      set forth in Section 1 above. If no such Registration Statement is
      available
      during
      the time that such Registration Statement is required to be effective pursuant
      to the terms of the Subscription Agreement, then commencing one year after
      the
      Issue Date, payment upon exercise may be made at the option of the Holder either
      in (i) cash, wire transfer or by certified or official bank check payable
      to the order of the Company equal to the applicable aggregate Purchase Price,
      (ii) by cashless exercise in accordance with Section (b) below or
      (iii) by a combination of any of the foregoing methods, for the number of
      shares of Common Stock specified in such form (as such exercise number shall
      be
      adjusted to reflect any adjustment in the total number of shares of Common
      Stock
      issuable to the Holder per the terms of this Warrant) and the Holder shall
      thereupon be entitled to receive the number of duly authorized, validly issued,
      fully-paid and non-assessable shares of Common Stock (or Other Securities)
      determined as provided herein.

     

    (b) If
      the
      Fair Market Value of one share of Common Stock is greater than the Purchase
      Price (at the date of calculation as set forth below), in lieu of exercising
      this Warrant for cash, the Holder may elect to receive shares equal to the
      value
      (as determined below) of this Warrant (or the portion thereof being cancelled)
      by surrender of this Warrant at the principal office of the Company together
      with the properly endorsed Subscription Form in which event the Company shall
      issue to the Holder a number of shares of Common Stock computed using the
      following formula:

     

    X=Y
      (A-B)

    A

    

    Where X= the
      number of shares of Common Stock to be issued to the holder

    

    
      	 	
              Y=

            	
              the
                number of shares of Common Stock purchasable under the Warrant or,
                if only
                a portion of the Warrant is being exercised, the portion of the Warrant
                being exercised (at the date of such
                calculation)

            

    

     

    
      	 	
              A=

            	
              the
                average of the closing sale prices of the Common Stock for the five
                (5)
                Trading Days immediately prior to (but not including) the Exercise
                Date

            

    

     

    
      	 	
              B=

            	
              Purchase
                Price (as adjusted to the date of such
                calculation)

            

    

     

    (c)  The
      Holder may employ the cashless exercise feature described in Section (b) above
      only during the pendency of a Non-Registration Event as described in Section
      11
      of the Subscription Agreement.

     

    For
      purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood
      and acknowledged that the Warrant Shares issued in a cashless exercise
      transaction shall be deemed to have been acquired by the Holder, and the holding
      period for the Warrant Shares shall be deemed to have commenced, on the date
      this Warrant was originally issued pursuant to the Subscription
      Agreement.

     

    3. Adjustment
      for Reorganization, Consolidation, Merger, etc.

     

    3.1. Reorganization,
      Consolidation, Merger, etc.
      In case
      at any time or from time to time, the Company shall (a) effect a
      reorganization, (b) consolidate with or merge into any other person or
      (c) transfer all or substantially all of its properties or assets to any
      other person under any plan or arrangement contemplating the dissolution of
      the
      Company, then, in each such case, as a condition to the consummation of such
      a
      transaction, proper and adequate provision shall be made by the Company whereby
      the Holder of this Warrant, on the exercise hereof as provided in
      Section 1, at any time after the consummation of such reorganization,
      consolidation or merger or the effective date of such dissolution, as the case
      may be, shall receive, in lieu of the Common Stock (or Other Securities)
      issuable on such exercise prior to such consummation or such effective date,
      the
      stock and other securities and property (including cash) to which such Holder
      would have been entitled upon such consummation or in connection with such
      dissolution, as the case may be, if such Holder had so exercised this Warrant,
      immediately prior thereto, all subject to further adjustment thereafter as
      provided in Section 4.

     

    3.2. Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, prior to such
      dissolution, shall at its expense deliver or cause to be delivered the stock
      and
      other securities and property (including cash, where applicable) receivable
      in
      accordance with Section 3.1 by the Holder of the Warrants upon their exercise
      after the effective date of such dissolution pursuant to this Section 3 to
      a bank or trust company (a “Trustee”) having its principal office in
      New York, NY, as trustee for the Holder of the Warrants. 

     

    3.3. Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the Other Securities and property receivable on the exercise of this Warrant
      after the consummation of such reorganization, consolidation or merger or the
      effective date of dissolution following any such transfer, as the case may
      be,
      and shall be binding upon the issuer of any Other Securities, including, in
      the
      case of any such transfer, the person acquiring all or substantially all of
      the
      properties or assets of the Company, whether or not such person shall have
      expressly assumed the terms of this Warrant as provided in Section 4. In
      the event this Warrant does not continue in full force and effect after the
      consummation of the transaction described in this Section 3, then only in
      such event will the Company’s securities and property (including cash, where
      applicable) receivable by the Holder of the Warrants be delivered to the Trustee
      as contemplated by Section 3.2.

     

    3.4 Share
      Issuance.
      Until
      two years after the Issue Date (or until the Expiration Date, if a Warrant
      Registration Default as described in Section 10 below has occurred), if the
      Company shall issue any Common Stock except for the Excepted Issuances (as
      defined in the Subscription Agreement), prior to the complete exercise of this
      Warrant for a consideration less than the Purchase Price that would be in effect
      at the time of such issue, then, and thereafter successively upon each such
      issue, the Purchase Price shall be reduced to such other lower issue price.
      For
      purposes of this adjustment, the issuance of any security or debt instrument
      of
      the Company carrying the right to convert such security or debt instrument
      into
      Common Stock or of any warrant, right or option to purchase Common Stock shall
      result in an adjustment to the Purchase Price upon the issuance of the
      above-described security, debt instrument, warrant, right, or option if such
      issuance is at a price lower than the Purchase Price in effect upon such
      issuance. The reduction of the Purchase Price described in this Section 3.4
      is
      in addition to the other rights of the Holder described in the Subscription
      Agreement.

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common
      Stock as a dividend or other distribution on outstanding Common Stock,
      (b) subdivide its outstanding shares of Common Stock, or (c) combine
      its outstanding shares of the Common Stock into a smaller number of shares
      of
      the Common Stock, then, in each such event, the Purchase Price shall,
      simultaneously with the happening of such event, be adjusted by multiplying
      the
      then Purchase Price by a fraction, the numerator of which shall be the number
      of
      shares of Common Stock outstanding immediately prior to such event and the
      denominator of which shall be the number of shares of Common Stock outstanding
      immediately after such event, and the product so obtained shall thereafter
      be
      the Purchase Price then in effect. The Purchase Price, as so adjusted, shall
      be
      readjusted in the same manner upon the happening of any successive event or
      events described herein in this Section 4. The number of shares of Common
      Stock that the Holder of this Warrant shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a
      number determined by multiplying the number of shares of Common Stock that
      would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Purchase Price
      that would otherwise (but for the provisions of this Section 4) be in
      effect, and (b) the denominator is the Purchase Price in effect on the date
      of such exercise.

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of the Warrants, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of the
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or
      receivable by the Company for any additional shares of Common Stock (or Other
      Securities) issued or sold or deemed to have been issued or sold, (b) the
      number of shares of Common Stock (or Other Securities) outstanding or deemed
      to
      be outstanding, and (c) the Purchase Price and the number of shares of
      Common Stock to be received upon exercise of this Warrant, in effect immediately
      prior to such adjustment or readjustment and as adjusted or readjusted as
      provided in this Warrant. The Company will forthwith mail a copy of each such
      certificate to the Holder of the Warrant and any Warrant Agent of the Company
      (appointed pursuant to Section 11 hereof).

     

    6. Reservation
      of Stock, etc. Issuable on Exercise of Warrant; Financial
      Statements.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Warrants, all shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of the Warrant. This
      Warrant entitles the Holder hereof to receive copies of all financial and other
      information distributed or required to be distributed to the holders of the
      Company’s Common Stock. 

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”). On the surrender for exchange of this Warrant, with the
      Transferor’s endorsement in the form of Exhibit B attached hereto (the
“Transferor Endorsement Form”) and together with an opinion of counsel
      reasonably satisfactory to the Company that the transfer of this Warrant will
      be
      in compliance with applicable securities laws, the Company at its expense,
      twice, only, but with payment by the Transferor of any applicable transfer
      taxes, will issue and deliver to or on the order of the Transferor thereof
      a new
      Warrant or Warrants of like tenor, in the name of the Transferor and/or the
      transferee(s) specified in such Transferor Endorsement Form (each a
“Transferee”), calling in the aggregate on the face or faces thereof for the
      number of shares of Common Stock called for on the face or faces of the Warrant
      so surrendered by the Transferor. No such transfers shall result in a public
      distribution of the Warrant.

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense, twice only, will execute and deliver, in lieu thereof,
      a
      new Warrant of like tenor.

     

    9. Registration
      Rights.
      The
      Holder of this Warrant has been granted certain registration rights by the
      Company. These registration rights are set forth in the Subscription Agreement.
      The terms of the Subscription Agreement are incorporated herein by this
      reference. In the event the Registration Statement (as defined in Section
      11.1(iv) of the Subscription Agreement) is not declared effective by the
      Commission within 180 days after the Issue Date (“Warrant Registration
      Default”), then the Expiration Date of this Warrant shall be five years after
      the Issue Date.

     

    10. Maximum
      Exercise.
      The
      Holder shall not be entitled to exercise this Warrant on an exercise
      date, in
      connection with that number of shares of Common Stock which would be in excess
      of the sum of (i) the number of shares of Common Stock beneficially owned
      by the Holder and its affiliates on an exercise date, and (ii) the number
      of shares of Common Stock issuable upon the exercise of this Warrant with
      respect to which the determination of this limitation is being made on an
      exercise date, which would result in beneficial ownership by the Holder and
      its
      affiliates of more than 4.99% of the outstanding shares of Common Stock on
      such
      date. For the purposes of the immediately preceding sentence, beneficial
      ownership shall be determined in accordance with Section 13(d) of the
      Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.
      Subject to the foregoing, the Holder shall not be limited to aggregate exercises
      which would result in the issuance of more than 4.99%. The
      restriction described in this paragraph may be waived, in whole or in part,
      upon sixty-one (61) days prior notice from the Holder to the Company to increase
      such percentage to up to 9.99%. The Holder may decide whether to convert a
      Convertible Note or exercise this Warrant to achieve an actual 4.99% or up
      to
      9.99% ownership position as described above.

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the Holder of the Warrant, appoint an agent
      (a
“Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities)
      on the exercise of this Warrant pursuant to Section 1, exchanging this
      Warrant pursuant to Section 7, and replacing this Warrant pursuant to
      Section 8, or any of the foregoing, and thereafter any such issuance,
      exchange or replacement, as the case may be, shall be made at such office by
      such Warrant Agent. 

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary. 

     

    13. Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur or
      (c)
      three business days after deposited in the mail if delivered pursuant to
      subsection (ii) above.
      The
      addresses for such communications shall be: (i) if to the Company to:
Ness
      Energy International, Inc., 4201
      East
      Interstate 20, Willow Park, TX 76087, Attn: JF Hoover, CFO, telecopier: (817)
      597-4303, with a copy by telecopier only to: Kevin Woltjen, Woltjen Law Firm,
      4144 North Central Expressway, Suite 410, Dallas, TX 75204, telecopier: (214)
      742-5545, and (ii) if to the Subscriber, to: the one or more addresses and
      telecopier numbers indicated on the signature pages hereto, with an additional
      copy by telecopier only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite
      1601, New York, New York 10176, telecopier number: (212) 697-3575.

    

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. This Warrant shall
      be construed and enforced in accordance with and governed by the laws of New
      York. Any dispute relating to this Warrant shall be adjudicated in New York
      County in the State of New York. The headings in this Warrant are for purposes
      of reference only, and shall not limit or otherwise affect any of the terms
      hereof. The invalidity or unenforceability of any provision hereof shall in
      no
      way affect the validity or enforceability of any other provision.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              NESS
                ENERGY INTERNATIONAL, INC.

               

               

               

              By:        

              Name:
                

              Title:
                

               

               

               

               

               

            
	
              Witness:

               

               

               

            	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit A

    FORM
      OF
      SUBSCRIPTION

    (to
      be
      signed only on exercise of Warrant)

    TO:
      NESS
      ENERGY INTERNATIONAL, INC. 

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No.____), hereby irrevocably elects to purchase (check applicable
      box):

    

    ___ ________
      shares of the Common Stock covered by such Warrant; or

    ___ the
      maximum number of shares of Common Stock covered by such Warrant pursuant to
      the
      cashless exercise procedure set forth in Section 2.

    

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

    ___ $__________
      in lawful money of the United States; and/or

    ___ the
      cancellation of the Warrant to the extent necessary, in accordance with the
      formula set forth in Section 2, to exercise this Warrant with respect to
      the maximum number of shares of Common Stock purchasable pursuant to the
      cashless exercise procedure set forth in Section 2.

    

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to _____________________________________________________
      whose
      address is
      __________________________________________________________________________________________________________________________________________________________________________

      Number
        of
        Shares of Common Stock Beneficially Owned on the date of exercise: Less
        than
        five percent (5%) of the outstanding Common Stock of Ness Energy International,
        Inc.

    The
      undersigned represents and warrants that the representations and warranties
      in
      Section 4 of the Subscription Agreement (as defined in this Warrant) are true
      and accurate with respect to the undersigned on the date hereof.

    

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”), or pursuant to an exemption from registration
      under the Securities Act.

    
      	
              Dated:___________________

            	
               

              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

               

               

               

              (Address)

            

    

    

    
      
        
          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Exhibit B

    

    FORM
      OF
      TRANSFEROR ENDORSEMENT

    (To
      be
      signed only on transfer of Warrant)

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of NESS ENERGY INTERNATIONAL, INC. to which the within Warrant relates
      specified under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of NESS ENERGY
      INTERNATIONAL, INC. with full power of substitution in the
      premises.

     

    
      	
              Transferees

            	
              Percentage
                Transferred

            	
              Number
                Transferred

            
	 	 	 
	 	 	 
	 	 	 

    

    

    

    
      	
              Dated:
                ______________, ___________

               

               

               

              Signed
                in the presence of:

               

               

              (Name)

               

               

              ACCEPTED
                AND AGREED:

              [TRANSFEREE]

               

               

               

              (Name)

            	
               

              (Signature
                must conform to name of holder as specified on the face of the
                warrant)

               

               

               

               

               

              (address)

               

               

               

              (address)Form of Waiver, Consent and Amendment Agreement

    WAIVER,
      CONSENT, AND AMENDMENT AGREEMENT

    

    THIS
      WAIVER, CONSENT, AND AMENDMENT AGREEMENT (this “Agreement”) is made, entered
      into, and effective as of June 2, 2006 by and between Lighting Science Group
      Corporation, a Delaware corporation (the “Company”), and the undersigned holder
      (the “Holder”) of shares of the Company’s 6% Convertible Preferred Stock, $0.001
      par value per share (“Preferred Stock”) and/or a warrant or warrants (“PIPE
      Warrants”) for the purchase shares of the Company’s common stock, $0.001 par
      value per share (“Common Stock”). Any and all capitalized terms used but not
      defined herein shall have the meaning(s) assigned to such terms in the Purchase
      Agreement (defined below).

    

    RECITALS

    

    WHEREAS,
      the Company and the Holder are parties to that certain Securities Purchase
      Agreement dated May 10, 2005 by and among the Company and the parties listed
      on
Exhibit
      A
      thereto
      (the “Purchase Agreement”) and the Holder is the holder of shares of Preferred
      Stock and/or PIPE Warrants;

    

    WHEREAS,
      the Company desires to borrow up to $2,000,000 from a traditional commercial
      bank (the “Debt”) and, for each dollar of the Debt guaranteed by such Guarantor
      (defined below), to sell, grant, and/or issue a warrant or warrants for the
      purchase of two shares of the Common Stock at an exercise price of $0.30 per
      share (the “Guarantee Warrants”) to each party (each a “Guarantor” and,
      collectively, the “Guarantors”) that guarantees the Debt (but up to a maximum of
      Guarantee Warrants to purchase 5,000,000 shares of Common Stock in the
      aggregate);

    

    WHEREAS,
      pursuant to the Purchase Agreement, (a) the Company granted to the Holder the
      Right of First Refusal to purchase all or any part of the Holder’s pro rata
      share of any New Securities that the Company may, from time to time, propose
      to
      sell and issue and (b) no provision of the Purchase Agreement may be waived
      or
      amended other than by a written instrument signed by the Company and the holders
      of at least a majority in interest of the then-outstanding shares of Preferred
      Stock and no provision of the Purchase Agreement may be waived other than by
      a
      written instrument signed by the party against whom enforcement of any such
      amendment or waiver is sought;

    

    WHEREAS,
      pursuant to the Certificate of Designation of Preferred Stock of the Company
      (the “Certificate of Designation”), (a) the Conversion Price (as defined in the
      Certificate of Designation) shall be subject to adjustment in the event that
      the
      Company shall issue or distribute New Securities, in any such case at a price
      per share less than $0.80 or that would entitle the holders of the New
      Securities to subscribe for or purchase shares of Common Stock at less than
      $0.80 per share and (b) the Company is restricted and limited from taking
      certain actions, including any action to alter, modify, or amend the terms
      of
      the Preferred Stock in any way, without the vote or written consent by the
      holders of at least a majority of the outstanding shares of Preferred Stock,
      voting together as a single class;

    

    WHEREAS,
      pursuant to the PIPE Warrants, the Exercise Price (as defined in the PIPE
      Warrants) shall be subject to adjustment in the event that the Company shall
      issue or distribute New Securities, in any such case at a price per share less
      than $0.80 (subject to any proportionate adjustment as provided in the PIPE
      Warrants) or that would entitle the holders of the New Securities to subscribe
      for or purchase shares of Common Stock at less than $0.80 (subject to any
      proportionate adjustment as provided in the PIPE Warrants); 

    

    WHEREAS,
      the Company has requested that Holder (a) waive its Right of First Refusal
      with
      respect to the Debt and the sale, grant and/or issuance of the Guarantee
      Warrants, (b) waive its Conversion Price adjustments to the Preferred Stock,
      and
      its Exercise Price adjustments to the PIPE Warrants, that would otherwise be
      triggered as a result of the sale, grant, and/or issuance of the Guarantee
      Warrants, and (c) consent to the Debt, the sale, grant, and issuance of the
      Guarantee Warrants, and the amendments and modifications to certain provisions
      of the Transaction Documents (collectively, the “Contemplated Transactions”),
      and Holder has agreed to do so on the condition that the Company execute and
      enter into this Agreement.

    

    

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants contained
      herein, and for other good, valuable, and binding consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the parties hereto, intending
      to
      be legally bound, hereby agree as follows:

    

    1. Waivers
      and Consents.
      The
      Holder unconditionally and irrevocably waives forever any and all rights of
      the
      Holder with respect to the Right of First Refusal, any Conversion Price
      adjustments, and any Exercise Price adjustments (if any) and any and all other
      rights of the Holder that would otherwise be triggered as a result of the sale,
      grant, and/or issuance of the Guarantee Warrants and/or the consummation of
      the
      Contemplated Transactions. The Holder hereby approves and consents to the
      Contemplated Transactions. This Agreement shall be and constitute a written
      consent pursuant to Section 228 of the General Corporation Law of the State
      of
      Delaware and shall be and constitute a written waiver, consent, amendment,
      and
      modification under and pursuant to and in accordance with the Purchase
      Agreement, the Certificate of Designation, and the PIPE Warrants. The waivers,
      amendments, and other changes to the Purchase Agreement and the Certificate
      of
      Designation contemplated by this Agreement shall apply to
      all
      holders of shares of Preferred Stock, and all shares of Preferred Stock,
      outstanding as of the date of this Agreement.

    

    2. Amendments
      to the Certificate of Designation.
      The
      Holder hereby approves and consents, and the Company consents, to the following
      amendments to the Certificate of Designation (or an Amended and Restated
      Certificate of Designation that integrates the following amendments to the
      Certificate of Designation):

    

    (a) Paragraph
      6(g) of the Certificate of Designation shall be amended and modified by (i)
      deleting each reference to “$0.80” therein and (ii) substituting “$0.50”
therefor;

    

    (b) Paragraph
      10 of the Certificate of Designation shall be amended and modified by (i)
      deleting the reference to “$0.80” in the definition of “Conversion Price”
therein and (ii) substituting “$0.50” therefor;

    

    (c) The
      Certificate of Designation shall be amended and modified to otherwise change
      all
      references to “Conversion Price” therein (and conform any and all provisions
      therein relating to the term Conversion Price as used therein, including,
      without limitation, provisions relating to adjustments to the Conversion Price
      therein) from $0.80 to $0.50;

    

    (d) If
      the
      Current Market Price (as defined in the Certificate of Designation) of the
      Common Stock is less than $0.50 per share on December 29, 2006, then Paragraph
      6(g) of the Certificate of Designation shall be further and immediately amended
      and modified by (i) deleting each reference to “$0.50” therein and (ii)
      substituting “$0.30” therefor;

    

    (e) If
      the
      Current Market Price of the Common Stock is less than $0.50 per share on
      December 29, 2006, then Paragraph 10 of the Certificate of Designation shall
      be
      further and immediately amended and modified by (i) deleting the reference
      to
“$0.50” in the definition of “Conversion Price” therein and (ii) substituting
“$0.30” therefor; and

    

    (f) If
      the
      Current Market Price of the Common Stock is less than $0.50 per share on
      December 29, 2006, then the Certificate of Designation shall be further and
      immediately amended and modified to otherwise change all references to
“Conversion Price” therein (and conform any and all provisions therein relating
      to the term Conversion Price as used therein, including, without limitation,
      provisions relating to adjustments to the Conversion Price therein) from $0.50
      to $0.30.

    

    (g)
       Paragraph
      10 of the Certificate of Designation shall be amended and modified by (i)
      deleting the reference to “$1.60” in the definition of “Forced Conversion
      Conditions” therein and (ii) substituting “$1.00” therefor.

    

    3. Amendments
      to the PIPE Warrants.
      The
      Holder hereby approves and consents, and the Company consents, to the following
      amendments to the PIPE Warrants (or Amended and Restated Warrants that integrate
      the following amendments to the PIPE Warrants):

    

    (a) The
      PIPE
      Warrants shall be amended and modified by (i) deleting the reference to “$0.96”
for purposes of the definition of “Exercise Price” therein and (ii) substituting
“$0.30” therefor; 

    

    (b) Section
      6
      of the PIPE Warrants shall be amended and modified by (i) deleting each
      reference to “$0.80” therein and (ii) substituting “$0.30” therefor;
      and

    

    (c) The
      PIPE
      Warrants shall be amended and modified to otherwise change all references to
      “Exercise Price” (and conform any and all provisions relating to the Exercise
      Price) from $0.96 to $0.30 and change and conform any and all provisions
      relating to adjustments to the Exercise Price from $0.80 to $0.30.

    

    4. No
      Continuing Waiver or Consent.
      No
      waiver by the Holder hereunder shall be deemed to be a continuing waiver in
      the
      future or a waiver of any provision, condition or requirement of any of the
      Transaction Documents other than as specifically waived by the Holder hereunder,
      nor shall any consent given by the Holder hereunder be deemed to be a consent
      to
      any thing or matter other than a consent to the Contemplated Transactions.
      

    

    5. Further
      Assurances; Legal Prohibitions.
      Each
      party hereto shall (a) furnish such information, (b) execute and deliver
      such documents, and (c) do all other such acts and things, in each case, if
      and as reasonably requested by any other party hereto for the purpose of
      carrying out the intents and purposes of this Agreement and the Contemplated
      Transactions. If
      the
      performance by the Company of any obligation(s) of the Company under this
      Agreement may be prohibited or otherwise limited by applicable law, the Company
      and the Holder shall use commercially reasonable efforts to enable the Company
      to fully satisfy, fulfill, and perform such obligation(s) or satisfy, fulfill,
      and perform such obligation(s) to the extent not prohibited by applicable
      law.

    

    6. Entire
      Agreement; Modification.
      This
      Agreement (together with the Transaction Documents and each other document
      contemplated by this Agreement) terminates, supersedes, and replaces all prior
      written and oral agreements among the parties hereto with respect to the subject
      matter of this Agreement, and constitutes (together with the Transaction
      Documents and each other document contemplated by this Agreement) a complete
      and
      exclusive statement of the terms of the agreement by and among the parties
      hereto with respect to the subject matter of this Agreement. This Agreement
      shall be deemed to be a “Transaction Document” under the Purchase Agreement.
The
      Company and the Holder acknowledge and agree that this Agreement does not in
      any
      way affect or diminish the rights, duties or obligations of the Company or
      the
      Holder under any of the Transaction Documents, except as specifically set forth
      herein.
      This
      Agreement may not be amended or otherwise modified except by a written agreement
      executed by all parties to be charged with or otherwise affected by any such
      amendment or modification.

    

    7. Conditions
      Precedent.
      Notwithstanding anything to the contrary in this Agreement, this Agreement
      shall
      be effective and binding upon the Company, the Holder, and each of the
      successors and permitted assigns of the Company and the Holder, respectively,
      upon the execution of this Agreement by the Company and the Holder and the
      delivery of counterparts of this Agreement executed by each party hereto on
      the
      signature page(s) of this Agreement.

    

    8. Severability.
      If any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement shall remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree shall remain in full force and effect
      to
      the extent not held invalid or unenforceable

    

    9. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, shall be deemed to constitute one (1) and the same
      instrument.

    

    10. Assignments,
      Successors, and No Third-Party Rights. This
      Agreement shall apply to, be binding in all respects upon, and inure to the
      benefit of the successors, heirs, personal representatives, and permitted
      assigns of the parties hereto. Nothing expressed or referred to in this
      Agreement shall be construed to give any party other than the parties to this
      Agreement any legal or equitable right, remedy, or claim under or with respect
      to this Agreement or any provision of this Agreement. This Agreement and all
      of
      its provisions and conditions are for the sole and exclusive benefit of the
      parties to this Agreement and the successors, heirs, personal representatives,
      and permitted assigns of the parties hereto.

    

    11. Miscellaneous.
      Unless
      stated otherwise herein (a) the singular number includes the plural and
vice
      versa
      and
      words of any gender include each other gender, in each case, as appropriate,
      (b) headings and captions may not be construed in interpreting provisions,
      and (c) this Agreement shall be governed by and construed exclusively in
      accordance with the laws of the State of Delaware, excluding the body of law
      relating to conflict of laws. On and after the date hereof, all references
      to
      the Transaction Documents shall refer to the Transaction Documents as amended
      and modified by this Agreement. 

    

    Remainder
      of Page Intentionally Left Blank.

    Signature
      Page To Follow.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Waiver, Consent, and
      Amendment Agreement effective as of the date first written above.

    

    COMPANY:

    

    Lighting
      Science Group Corporation

    

    

    By:      

    Name:      

    Title:      

    

    HOLDER:

    

    [INSERT
      NAME OF HOLDER]

    By:      

    Name:      

    Title:      

    

    

    

    Date:
      June ______, 2006     

    

    

    Signature
      Page No. 1 of 1 to Waiver, Consent, and Amendment
      Agreement.

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