Document:

Exhibit 10.1

                          SECURITIES PURCHASE AGREEMENT

     This  Securities  Purchase  Agreement  (this  "Agreement")  is  dated as of
December 30, 2014,  between Stevia Corp., a Nevada  corporation (the "Company"),
and each purchaser identified on the signature pages hereto (each, including its
successors and assigns, a "Purchaser" and collectively, the "Purchasers").

     WHEREAS,  subject to the terms and  conditions  set forth in this Agreement
and pursuant to Section  4(a)(2) of the  Securities Act of 1933, as amended (the
"Securities Act"), and Rule 506 promulgated  thereunder,  the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
desires to purchase  from the Company,  securities  of the Company as more fully
described in this Agreement.

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

                                    ARTICLE I.
                                   DEFINITIONS

     1.1  Definitions.  In  addition  to the  terms  defined  elsewhere  in this
Agreement:  (a) capitalized terms that are not otherwise defined herein have the
meanings given to such terms in the Debentures (as defined herein),  and (b) the
following terms have the meanings set forth in this Section 1.1:

     "Acquiring  Person" shall have the meaning ascribed to such term in Section
4.7.

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

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

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

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

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

     "Closing  Date"  means  the  Trading  Day on which  all of the  Transaction
Documents  have been executed and delivered by the applicable  parties  thereto,
and all  conditions  precedent  to (i) the  Purchasers'  obligations  to pay the
Subscription   Amount  and  (ii)  the  Company's   obligations  to  deliver  the
Securities, in each case, have been satisfied or waived.
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     "Commission" means the United States Securities and Exchange Commission.

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

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

     "Company  Counsel" means  Greenberg  Traurig,  LLP, with offices located at
1201 K Street, Suite 1100, Sacramento, California 95814.

     "Conversion  Price"  shall have the  meaning  ascribed  to such term in the
Debentures.

     "Conversion  Shares"  shall have the  meaning  ascribed to such term in the
Debentures.

     "Debentures" means the Original Issue Discount Convertible  Debentures due,
subject to the terms therein,  18 months from their date of issuance,  issued by
the  Company  to the  Purchasers  hereunder,  in the form of  Exhibit A attached
hereto.

     "Disclosure  Schedules"  shall have the  meaning  ascribed  to such term in
Section 3.1.

     "EGS" means  Ellenoff  Grossman & Schole LLP, with offices  located at 1345
Avenue of the Americas, New York, New York 10105-0302.

     "Effective  Date" means the  earliest  of the date that (a) a  registration
statement  registering all of the Underlying Shares has been declared  effective

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

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

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

     "Exempt  Issuance"  means the  issuance  of (a)  shares of Common  Stock or
options to employees,  consultants, officers or directors of the Company up to a
maximum  aggregate  amount equal to ten percent  (10%) of the total  outstanding
shares of Common Stock (as adjusted for stock  splits,  stock  dividends and the
like),  (b)  securities  upon the exercise or exchange of or  conversion  of any
Securities issued hereunder and/or other securities  exercisable or exchangeable
for or  convertible  into shares of Common Stock issued and  outstanding  on the
date of this  Agreement,  provided  that such  securities  have not been amended
since the date of this Agreement to increase the number of such securities or to
decrease  the  exercise  price,  exchange  price  or  conversion  price  of such
securities,  and (c) securities  issued  pursuant to  acquisitions  or strategic
transactions  approved  by a  majority  of the  disinterested  directors  of the
Company,  provided that any such  issuance  shall only be to a Person (or to the
equityholders  of a Person)  which is,  itself or through its  subsidiaries,  an
operating  company  or an owner of an asset in a business  synergistic  with the
business of the Company and shall provide to the Company additional  benefits in
addition to the  investment  of funds,  but shall not include a  transaction  in
which the  Company is issuing  securities  primarily  for the purpose of raising
capital or to an entity whose primary business is investing in securities.

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

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

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

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

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

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

     "Legend  Removal  Date"  shall have the  meaning  ascribed  to such term in
Section 4.1(c).

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

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

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

     "Maximum  Rate"  shall have the  meaning  ascribed  to such term in Section
5.17.

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     "Participation  Maximum"  shall have the  meaning  ascribed to such term in
Section 4.12(a).

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

     "Placement Agent" means Garden State Securities, Inc.

     "Pre-Notice"  shall  have the  meaning  ascribed  to such  term in  Section
4.12(b).

     "Principal Amount" means, as to each Purchaser, the amounts set forth below
such  Purchaser's  signature  block on the  signature  pages  hereto next to the
heading  "Principal  Amount," in United States  Dollars,  which shall equal such
Purchaser's Subscription Amount multiplied by 1.25.

     "Pro Rata Portion" shall have the meaning  ascribed to such term in Section
4.12(e).

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

     "Public  Information  Failure" shall have the meaning ascribed to such term
in Section 4.3(b).

     "Public  Information  Failure  Payments" shall have the meaning ascribed to
such term in Section 4.3(b).

     "Purchaser  Party" shall have the meaning  ascribed to such term in Section
4.10.

     "Registration Statement" means a registration statement covering the resale
of the Underlying Shares by each Purchaser. Each Purchaser acknowledges that the
Company has no obligation  pursuant to any of the Transaction  Documents to file
any such registration statement.

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

     "Required  Minimum" means, as of any date, the maximum  aggregate number of
shares  of Common  Stock  then  issued or  potentially  issuable  in the  future
pursuant to the Transaction Documents,  including any Underlying Shares issuable
upon exercise in full of all Warrants or  conversion  in full of all  Debentures
(including Underlying Shares issuable as payment of interest on the Debentures),
ignoring any conversion or exercise limits set forth therein,  and assuming that
the Conversion Price is at all times on and after the date of determination  75%
of the then Conversion Price on the Trading Day immediately prior to the date of
determination.

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

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

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

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

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

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

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

     "Subsequent  Financing"  shall have the  meaning  ascribed  to such term in
Section 4.12(a).

     "Subsequent  Financing Notice" shall have the meaning ascribed to such term
in Section 4.12(b).

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

     "Subsidiary  Guarantee"  means  the  Subsidiary  Guarantee,  dated the date
hereof, by each Subsidiary in favor of the Purchasers,  in the form of Exhibit D
attached hereto.

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

     "Trading  Market" means any of the following  markets or exchanges on which
the Common  Stock is listed or quoted for trading on the date in  question:  the
NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global

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Select  Market,  the New York Stock  Exchange or the OTC Bulletin  Board (or any
successors to any of the foregoing).

     "Transaction Documents" means this Agreement, the Debentures, the Warrants,
the Subsidiary Guarantee,  all exhibits and schedules thereto and hereto and any
other  documents or  agreements  executed in  connection  with the  transactions
contemplated hereunder.

     "Transfer  Agent"  means  Securities  Transfer  Corporation,   the  current
transfer agent of the Company,  with a mailing  address of 2591 Dallas  Parkway,
Suite 102, Frisco, Texas 75034 and a facsimile number of (469) 633-0088, and any
successor transfer agent of the Company.

     "Underlying  Shares"  means the shares of Common  Stock issued and issuable
upon  conversion  or  redemption  of the  Debentures  and upon  exercise  of the
Warrants.

     "Variable Rate Transaction" shall have the meaning ascribed to such term in
Section 4.13(b).

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

     "Warrants"  means,   collectively,   the  Common  Stock  purchase  warrants
delivered to the  Purchasers  at the Closing in accordance  with Section  2.2(a)
hereof, which Warrants shall be exercisable six months from the date of issuance
and have a term of  exercise  equal  to seven  years  from the  initial  date of
exercise, in the form of Exhibit B attached hereto.

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

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                                   ARTICLE II.
                                PURCHASE AND SALE

     2.1  Closing.  On the  Closing  Date,  upon the  terms and  subject  to the
conditions  set forth herein,  substantially  concurrent  with the execution and
delivery of this  Agreement by the parties  hereto,  the Company agrees to sell,
and the  Purchasers,  severally  and not jointly,  agree to  purchase,  up to an
aggregate of $1,250,000 in principal  amount of the  Debentures.  Each Purchaser
shall  deliver  to  the  Company,  via  wire  transfer  or  a  certified  check,
immediately available funds equal to such Purchaser's Subscription Amount as set
forth on the signature page hereto executed by such  Purchaser,  and the Company
shall deliver to each  Purchaser  its  respective  Debenture  and a Warrant,  as
determined  pursuant to Section 2.2(a), and the Company and each Purchaser shall
deliver  the other items set forth in Section 2.2  deliverable  at the  Closing.
Upon  satisfaction of the covenants and conditions set forth in Sections 2.2 and
2.3, the Closing shall occur at the offices of EGS or such other location as the
parties shall mutually agree.

     2.2 Deliveries.

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

          (i) this Agreement duly executed by the Company;

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

          (iii)a  Debenture  with a principal  amount equal to such  Purchaser's
     Principal Amount, registered in the name of such Purchaser;

          (iv) a Warrant registered in the name of such Purchaser to purchase up
     to a number of shares of  Common  Stock  equal to 100% of such  Purchaser's
     Conversion  Shares on the Closing  Date,  with an  exercise  price equal to
     $0.12,  subject to  adjustment  therein (such  Warrant  certificate  may be
     delivered within three Trading Days of the Closing Date); and

          (v) the Subsidiary Guarantee, duly executed by the parties thereto.

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

          (i) this Agreement duly executed by such Purchaser; and

          (ii) such  Purchaser's  Subscription  Amount by wire  transfer  to the
     account specified in writing by the Company.

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     2.3 Closing Conditions.

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

          (i) the  accuracy  in all  material  respects  on (or,  to the  extent
     representations  or  warranties  are qualified by  materiality  or Material
     Adverse  Effect,  in all respects) the Closing Date of the  representations
     and warranties of the Purchasers  contained herein (unless as of a specific
     date therein in which case they shall be accurate as of such date);

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

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

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

          (i)  the  accuracy  in  all  material  respects  (or,  to  the  extent
     representations  or  warranties  are qualified by  materiality  or Material
     Adverse  Effect,  in all respects) when made and on the Closing Date of the
     representations  and warranties of the Company  contained herein (unless as
     of a specific date therein);

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

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

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

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

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                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

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

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

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

     (c)  Authorization;  Enforcement.  The Company has the requisite  corporate
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by this Agreement and each of the other  Transaction  Documents and
otherwise to carry out its obligations  hereunder and thereunder.  The execution
and delivery of this  Agreement and each of the other  Transaction  Documents by
the Company and the consummation by it of the transactions  contemplated  hereby

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and thereby have been duly authorized by all necessary action on the part of the
Company and no further action is required by the Company, the Board of Directors
or the Company's  stockholders in connection herewith or therewith other than in
connection  with  the  Required   Approvals.   This  Agreement  and  each  other
Transaction Document to which it is a party has been (or upon delivery will have
been) duly  executed by the Company and, when  delivered in accordance  with the
terms hereof and thereof,  will  constitute the valid and binding  obligation of
the  Company  enforceable  against  the  Company in  accordance  with its terms,
except:   (i)  as  limited  by  general  equitable   principles  and  applicable
bankruptcy,  insolvency,  reorganization,  moratorium  and other laws of general
application  affecting  enforcement  of  creditors'  rights  generally,  (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other  equitable  remedies and (iii)  insofar as  indemnification  and
contribution provisions may be limited by applicable law.

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

     (e) Filings,  Consents and Approvals. The Company is not required to obtain
any consent, waiver,  authorization or order of, give any notice to, or make any
filing or registration  with, any court or other federal,  state, local or other
governmental  authority  or other  Person  in  connection  with  the  execution,
delivery and  performance  by the Company of the  Transaction  Documents,  other
than: (i) the filings required  pursuant to Section 4.6 of this Agreement,  (ii)
the notice  and/or  application(s)  to each  applicable  Trading  Market for the
issuance and sale of the Securities and the listing of the Conversion Shares and
Warrant Shares for trading thereon in the time and manner required thereby,  and
(iii) the filing of Form D with the  Commission and such filings as are required
to be made under applicable state securities laws  (collectively,  the "Required
Approvals").

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     (f) Issuance of the  Securities.  The Securities are duly  authorized  and,
when  issued  and  paid  for  in  accordance  with  the  applicable  Transaction
Documents,  will be duly and validly issued, fully paid and nonassessable,  free
and clear of all  Liens  imposed  by the  Company  other  than  restrictions  on
transfer provided for in the Transaction Documents.  The Underlying Shares, when
issued  in  accordance  with the  terms of the  Transaction  Documents,  will be
validly  issued,  fully  paid and  nonassessable,  free and  clear of all  Liens
imposed by the Company other than  restrictions on transfer  provided for in the
Transaction Documents. The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock for issuance of the  Underlying  Shares
at least equal to the Required Minimum on the date hereof.

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

                                       11
<PAGE>
     (h) SEC Reports;  Financial Statements.  The Company has filed all reports,
schedules,  forms,  statements and other  documents  required to be filed by the
Company under the  Securities  Act and the Exchange Act,  including  pursuant to
Section 13(a) or 15(d) thereof,  for the two years preceding the date hereof (or
such  shorter  period as the Company was required by law or  regulation  to file
such  material)  (the foregoing  materials,  including the exhibits  thereto and
documents  incorporated by reference  therein,  being  collectively  referred to
herein as the "SEC Reports") on a timely basis or has received a valid extension
of such  time of  filing  and has  filed  any  such  SEC  Reports  prior  to the
expiration of any such extension.  As of their  respective  dates and subject to
any  amendments  thereto  which  have  been  filed  prior  to the  date  of this
Agreement,   the  SEC  Reports  complied  in  all  material  respects  with  the
requirements of the Securities Act and the Exchange Act, as applicable, and none
of the SEC Reports,  when filed,  contained  any untrue  statement of a material
fact or  omitted  to state a  material  fact  required  to be stated  therein or
necessary  in  order  to  make  the  statements  therein,  in the  light  of the
circumstances  under  which  they  were  made,  not  misleading.  The  financial
statements  of the Company  included in the SEC Reports  comply in all  material
respects with applicable  accounting  requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing.  Such
financial  statements  have been  prepared  in  accordance  with  United  States
generally  accepted  accounting  principles applied on a consistent basis during
the periods  involved  ("GAAP"),  except as may be  otherwise  specified in such
financial  statements or the notes thereto and except that  unaudited  financial
statements may not contain all footnotes required by GAAP, and fairly present in
all material respects the financial position of the Company and its consolidated
Subsidiaries  as of and for the dates thereof and the results of operations  and
cash  flows  for the  periods  then  ended,  subject,  in the case of  unaudited
statements, to normal, immaterial, year-end audit adjustments.

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

                                       12
<PAGE>
properties, operations, assets or financial condition, that would be required to
be disclosed by the Company under  applicable  securities  laws at the time this
representation  is made or deemed made that has not been  publicly  disclosed at
least 1 Trading Day prior to the date that this representation is made.

     (j) Litigation.  There is no action,  suit,  inquiry,  notice of violation,
proceeding  or  investigation  pending  or,  to the  knowledge  of the  Company,
threatened  against or affecting  the Company,  any  Subsidiary  or any of their
respective  properties  before  or by any  court,  arbitrator,  governmental  or
administrative agency or regulatory authority (federal,  state, county, local or
foreign)  (collectively,  an "Action") which (i) adversely affects or challenges
the legality,  validity or enforceability of any of the Transaction Documents or
the  Securities or (ii) could,  if there were an unfavorable  decision,  have or
reasonably  be  expected  to result in a Material  Adverse  Effect.  Neither the
Company nor any Subsidiary,  nor any director or officer thereof, is or has been
the subject of any Action  involving a claim of violation of or liability  under
federal or state  securities laws or a claim of breach of fiduciary duty.  There
has not been,  and to the  knowledge  of the  Company,  there is not  pending or
contemplated,  any investigation by the Commission  involving the Company or any
current or former  director or officer of the Company.  The  Commission  has not
issued  any stop  order or  other  order  suspending  the  effectiveness  of any
registration statement filed by the Company or any Subsidiary under the Exchange
Act or the Securities Act.

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

     (l) Compliance.  Neither the Company nor any Subsidiary:  (i) is in default
under or in  violation  of (and no event has  occurred  that has not been waived
that,  with  notice or lapse of time or both,  would  result in a default by the
Company or any Subsidiary under), nor has the Company or any Subsidiary received
notice of a claim that it is in default under or that it is in violation of, any
indenture,  loan or credit  agreement or any other  agreement or  instrument  to

                                       13
<PAGE>
which it is a party or by which it or any of its properties is bound (whether or
not such  default or  violation  has been  waived),  (ii) is in violation of any
judgment,  decree  or  order of any  court,  arbitrator  or  other  governmental
authority or (iii) to the knowledge of the Company,  is or has been in violation
of any statute,  rule,  ordinance or regulation of any  governmental  authority,
including without limitation all foreign, federal, state and local laws relating
to taxes,  environmental  protection,  occupational  health and safety,  product
quality  and safety and  employment  and labor  matters,  except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

     (m)  Regulatory  Permits.  The  Company  and the  Subsidiaries  possess all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state,  local or foreign  regulatory  authorities  necessary  to  conduct  their
respective businesses as described in the SEC Reports,  except where the failure
to possess such permits could not reasonably be expected to result in a Material
Adverse Effect ("Material Permits"),  and neither the Company nor any Subsidiary
has received any written  notice of  proceedings  relating to the  revocation or
modification of any Material Permit.

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

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

                                       14
<PAGE>
existing  infringement  by another  Person of any of the  Intellectual  Property
Rights. The Company and its Subsidiaries have taken reasonable security measures
to protect the secrecy,  confidentiality  and value of all of their intellectual
properties,  except  where  failure to do so could not,  individually  or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

     (p) Insurance.  The Company and the Subsidiaries are insured by insurers of
recognized  financial  responsibility  against such losses and risks and in such
amounts as are prudent and customary in the  businesses in which the Company and
the  Subsidiaries  are  engaged,  provided  that the Company  does not  maintain
directors  and  officers  insurance  coverage.   Neither  the  Company  nor  any
Subsidiary  has any  reason  to  believe  that it will not be able to renew  its
existing  insurance  coverage  as and when such  coverage  expires  or to obtain
similar  coverage  from  similar  insurers as may be  necessary  to continue its
business without a significant increase in cost.

     (q) Transactions With Affiliates and Employees.  Except as set forth in the
SEC Reports,  none of the officers or directors of the Company or any Subsidiary
and, to the  knowledge of the Company,  none of the  employees of the Company or
any Subsidiary is presently a party to any  transaction  with the Company or any
Subsidiary  (other than for  services as  employees,  officers  and  directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property  to or from  providing  for the  borrowing  of money from or lending of
money to, or otherwise  requiring  payments to or from any officer,  director or
such  employee  or, to the  knowledge  of the  Company,  any entity in which any
officer,  director,  or any such  employee has a  substantial  interest or is an
officer,  director,  trustee,  stockholder,  member or partner,  in each case in
excess of $120,000 other than for: (i) payment of salary or consulting  fees for
services  rendered,  (ii)  reimbursement  for expenses incurred on behalf of the
Company and (iii) other employee  benefits,  including  stock option  agreements
under any stock option plan of the Company.

     (r)  Sarbanes-Oxley;  Internal  Accounting  Controls.  The  Company and the
Subsidiaries are in material compliance with any and all applicable requirements
of the  Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and
any and all  applicable  rules and  regulations  promulgated  by the  Commission
thereunder  that are effective as of the date hereof and as of the Closing Date.
The  Company  and the  Subsidiaries  maintain  a system of  internal  accounting
controls  sufficient to provide reasonable  assurance that: (i) transactions are
executed in accordance  with  management's  general or specific  authorizations,
(ii)  transactions are recorded as necessary to permit  preparation of financial
statements in conformity with GAAP and to maintain asset  accountability,  (iii)
access to assets is permitted only in accordance  with  management's  general or
specific  authorization,  and (iv) the  recorded  accountability  for  assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.  The Company and the Subsidiaries have
established disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) for the Company and the  Subsidiaries and designed such

                                       15
<PAGE>
disclosure  controls and  procedures to ensure that  information  required to be
disclosed  by the Company in the reports it files or submits  under the Exchange
Act is recorded,  processed,  summarized  and reported,  within the time periods
specified in the Commission's rules and forms. The Company's certifying officers
have evaluated the  effectiveness  of the disclosure  controls and procedures of
the Company and the Subsidiaries as of the end of the period covered by the most
recently  filed  periodic   report  under  the  Exchange  Act  (such  date,  the
"Evaluation  Date").  The Company  presented in its most recently filed periodic
report under the Exchange Act the  conclusions of the certifying  officers about
the  effectiveness  of the  disclosure  controls and  procedures  based on their
evaluations as of the Evaluation  Date.  Since the Evaluation  Date,  there have
been no changes in the internal  control over financial  reporting (as such term
is defined in the Exchange Act) that have materially affected,  or is reasonably
likely to materially  affect,  the internal control over financial  reporting of
the Company and its Subsidiaries.

     (s) Certain Fees.  Except as set forth on Schedule 3.1(s),  no brokerage or
finder's  fees or  commissions  are or will be  payable  by the  Company  or any
Subsidiaries to any broker,  financial advisor or consultant,  finder, placement
agent,  investment banker, bank or other Person with respect to the transactions
contemplated  by  the  Transaction  Documents.  The  Purchasers  shall  have  no
obligation  with respect to any fees or with respect to any claims made by or on
behalf of other Persons for fees of a type contemplated in this Section that may
be due in  connection  with the  transactions  contemplated  by the  Transaction
Documents.

     (t)  Private   Placement.   Assuming  the   accuracy  of  the   Purchasers'
representations  and warranties set forth in Section 3.2, no registration  under
the  Securities  Act is required for the offer and sale of the Securities by the
Company to the Purchasers as contemplated  hereby.  The issuance and sale of the
Securities  hereunder  does not  contravene  the  rules and  regulations  of the
Trading Market.

     (u) Investment Company. The Company is not, and is not an Affiliate of, and
immediately  after receipt of payment for the  Securities,  will not be or be an
Affiliate  of, an  "investment  company"  within the  meaning of the  Investment
Company Act of 1940,  as amended.  The Company  shall  conduct its business in a
manner  so  that  it  will  not  become  an  "investment   company"  subject  to
registration under the Investment Company Act of 1940, as amended.

     (v) Registration Rights.  Except as set forth on Schedule 3.1(v), no Person
has any  right to cause  the  Company  to  effect  the  registration  under  the
Securities Act of any securities of the Company or any Subsidiaries.

     (w) Listing and  Maintenance  Requirements.  The Common Stock is registered
pursuant  to Section  12(b) or 12(g) of the  Exchange  Act,  and the Company has
taken no action  designed  to, or which to its  knowledge  is likely to have the
effect of,  terminating the  registration of the Common Stock under the Exchange
Act nor has the  Company  received  any  notification  that  the  Commission  is
contemplating  terminating  such  registration.  The  Company has not, in the 12

                                       16
<PAGE>
months  preceding  the date  hereof,  received  written  notice from any Trading
Market on which the Common  Stock is or has been  listed or quoted to the effect
that  the  Company  is  not  in  compliance  with  the  listing  or  maintenance
requirements  of such  Trading  Market.  The  Company  is,  and has no reason to
believe that it will not in the foreseeable future continue to be, in compliance
with  all  such  listing  and  maintenance  requirements.  The  Common  Stock is
currently eligible for electronic  transfer through the Depository Trust Company
or  another  established  clearing  corporation  and the  Company  is current in
payment of the fees to the Depository  Trust Company (or such other  established
clearing corporation) in connection with such electronic transfer.

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

     (y) Disclosure. Except with respect to the material terms and conditions of
the transactions contemplated by the Transaction Documents, the Company confirms
that  neither it nor any other  Person  acting on its behalf has provided any of
the Purchasers or their agents or counsel with any information  that it believes
constitutes or might constitute material,  non-public  information.  The Company
understands  and  confirms  that  the  Purchasers  will  rely  on the  foregoing
representation  in effecting  transactions in securities of the Company.  All of
the  disclosure  furnished  by or on behalf  of the  Company  to the  Purchasers
regarding the Company and its Subsidiaries,  their respective businesses and the
transactions  contemplated  hereby,  including the Disclosure  Schedules to this
Agreement,  is true and correct and does not contain any untrue  statement  of a
material fact or omit to state any material fact  necessary in order to make the
statements  made therein,  in light of the  circumstances  under which they were
made, not misleading.  The press releases disseminated by the Company during the
twelve  months  preceding  the date of this  Agreement  taken as a whole did not
contain any untrue statement of a material fact or omit to state a material fact
required  to be stated  therein  or  necessary  in order to make the  statements
therein, in light of the circumstances under which they were made and when made,
not misleading.  The Company  acknowledges and agrees that no Purchaser makes or
has made any  representations  or  warranties  with respect to the  transactions
contemplated  hereby  other than  those  specifically  set forth in Section  3.2
hereof.

     (z) No  Integrated  Offering.  Assuming  the  accuracy  of the  Purchasers'
representations  and warranties  set forth in Section 3.2,  neither the Company,
nor any of its  Affiliates,  nor any Person  acting on its or their  behalf has,
directly or  indirectly,  made any offers or sales of any  security or solicited
any  offers to buy any  security,  under  circumstances  that  would  cause this
offering of the Securities to be integrated  with prior offerings by the Company

                                       17
<PAGE>
for purposes of (i) the Securities Act which would require the  registration  of
any such securities under the Securities Act, or (ii) any applicable shareholder
approval  provisions of any Trading Market on which any of the securities of the
Company are listed or designated.

     (aa) Solvency. Based on the consolidated financial condition of the Company
as of the Closing Date, after giving effect to the receipt by the Company of the
proceeds from the sale of the Securities hereunder:  (i) the fair saleable value
of the Company's  assets  exceeds the amount that will be required to be paid on
or in respect of the Company's  existing debts and other liabilities  (including
known contingent  liabilities) as they mature,  (ii) the Company's assets do not
constitute  unreasonably small capital to carry on its business as now conducted
and as proposed to be conducted  including its capital needs taking into account
the particular  capital  requirements of the business  conducted by the Company,
consolidated  and  projected  capital   requirements  and  capital  availability
thereof,  and (iii) the  current  cash flow of the  Company,  together  with the
proceeds the Company  would  receive,  were it to  liquidate  all of its assets,
after taking into account all anticipated  uses of the cash, would be sufficient
to pay all  amounts on or in respect of its  liabilities  when such  amounts are
required  to be paid.  The  Company  does not intend to incur  debts  beyond its
ability to pay such debts as they  mature  (taking  into  account the timing and
amounts of cash to be payable on or in respect of its debt).  The Company has no
knowledge  of any facts or  circumstances  which lead it to believe that it will
file for  reorganization  or liquidation  under the bankruptcy or reorganization
laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(aa)
sets  forth  as of  the  date  hereof  all  outstanding  secured  and  unsecured
Indebtedness of the Company or any  Subsidiary,  or for which the Company or any
Subsidiary has commitments.  For the purposes of this Agreement,  "Indebtedness"
means  (x) any  liabilities  for  borrowed  money or  amounts  owed in excess of
$50,000 (other than trade accounts  payable  incurred in the ordinary  course of
business), (y) all guaranties,  endorsements and other contingent obligations in
respect  of  indebtedness  of  others,  whether or not the same are or should be
reflected in the Company's  consolidated  balance sheet (or the notes  thereto),
except  guaranties  by  endorsement  of  negotiable  instruments  for deposit or
collection or similar  transactions in the ordinary course of business;  and (z)
the present  value of any lease  payments in excess of $50,000 due under  leases
required to be capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

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

                                       18
<PAGE>
of any  jurisdiction,  and the officers of the Company or of any Subsidiary know
of no basis for any such claim.

     (cc) No General Solicitation.  Neither the Company nor any person acting on
behalf of the Company has offered or sold any of the  Securities  by any form of
general  solicitation  or general  advertising.  The  Company  has  offered  the
Securities  for  sale  only to the  Purchasers  and  certain  other  "accredited
investors" within the meaning of Rule 501 under the Securities Act.

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

     (ee)  Accountants.  The Company's  accounting firm is set forth on Schedule
3.1(ee) of the Disclosure Schedules. To the knowledge and belief of the Company,
such accounting firm: (i) is a registered  public accounting firm as required by
the  Exchange  Act and (ii)  shall  express  its  opinion  with  respect  to the
financial  statements  to be included  in the  Company's  Annual  Report for the
fiscal year ending March 31, 2015.

     (ff)  Seniority.  As of the Closing  Date, no  Indebtedness  or other claim
against the  Company is senior to the  Debentures  in right of payment,  whether
with respect to interest or upon liquidation or dissolution, or otherwise, other
than indebtedness  secured by purchase money security interests (which is senior
only as to underlying  assets  covered  thereby) and capital  lease  obligations
(which is senior only as to the property covered thereby).

     (gg)  No  Disagreements   with  Accountants  and  Lawyers.   There  are  no
disagreements of any kind presently existing,  or reasonably  anticipated by the
Company to arise,  between the Company and the accountants and lawyers  formerly
or presently  employed by the Company and the Company is current with respect to
any fees owed to its  accountants  and lawyers  which could affect the Company's
ability  to  perform  any  of its  obligations  under  any  of  the  Transaction
Documents.

     (hh)  Acknowledgment  Regarding  Purchasers'  Purchase of  Securities.  The
Company  acknowledges and agrees that each of the Purchasers is acting solely in
the  capacity  of an arm's  length  purchaser  with  respect to the  Transaction
Documents  and  the  transactions  contemplated  thereby.  The  Company  further
acknowledges  that no Purchaser is acting as a financial advisor or fiduciary of
the  Company  (or in any  similar  capacity)  with  respect  to the  Transaction
Documents and the transactions  contemplated thereby and any advice given by any

                                       19
<PAGE>
Purchaser or any of their  respective  representatives  or agents in  connection
with the  Transaction  Documents and the  transactions  contemplated  thereby is
merely  incidental to the Purchasers'  purchase of the  Securities.  The Company
further  represents to each Purchaser that the Company's  decision to enter into
this Agreement and the other Transaction  Documents has been based solely on the
independent  evaluation of the transactions  contemplated  hereby by the Company
and its representatives.

     (ii) Acknowledgment  Regarding  Purchaser's  Trading Activity.  Anything in
this Agreement or elsewhere herein to the contrary  notwithstanding  (except for
Sections  3.2(g) and 4.15 hereof),  it is  understood  and  acknowledged  by the
Company that: (i) none of the Purchasers has been asked by the Company to agree,
nor has any Purchaser agreed, to desist from purchasing or selling,  long and/or
short, securities of the Company, or "derivative" securities based on securities
issued by the Company or to hold the  Securities  for any specified  term,  (ii)
past or future open market or other transactions by any Purchaser,  specifically
including, without limitation, Short Sales or "derivative" transactions,  before
or after the  closing  of this or future  private  placement  transactions,  may
negatively impact the market price of the Company's publicly-traded  securities,
(iii) any Purchaser,  and counter-parties in "derivative"  transactions to which
any such  Purchaser is a party,  directly or  indirectly,  may presently  have a
"short" position in the Common Stock and (iv) each Purchaser shall not be deemed
to have any affiliation  with or control over any arm's length  counter-party in
any "derivative"  transaction.  The Company further understands and acknowledges
that (y) one or more  Purchasers  may  engage in hedging  activities  at various
times during the period that the Securities are outstanding,  including, without
limitation,  during  the  periods  that  the  value  of  the  Underlying  Shares
deliverable  with  respect  to  Securities  are being  determined,  and (z) such
hedging activities (if any) could reduce the value of the existing stockholders'
equity  interests  in the  Company  at and  after  the  time  that  the  hedging
activities   are  being   conducted.   The   Company   acknowledges   that  such
aforementioned  hedging  activities  do not  constitute  a breach  of any of the
Transaction Documents.

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

     (kk) FDA. As to each product  subject to the  jurisdiction of the U.S. Food
and Drug  Administration  ("FDA") under the Federal Food, Drug and Cosmetic Act,
as  amended,  and the  regulations  thereunder  ("FDCA")  that is  manufactured,
packaged, labeled, tested, distributed,  sold, and/or marketed by the Company or
any of its Subsidiaries (each such product, an "FDA Product"),  such FDA Product

                                       20
<PAGE>
is being  manufactured,  packaged,  labeled,  tested,  distributed,  sold and/or
marketed by the Company in compliance  with all  applicable  requirements  under
FDCA  and  similar  laws,  rules  and  regulations   relating  to  registration,
investigational use, premarket clearance,  licensure,  or application  approval,
good  manufacturing   practices,   good  laboratory  practices,   good  clinical
practices,  product listing, quotas, labeling,  advertising,  record keeping and
filing of reports, except where the failure to be in compliance would not have a
Material  Adverse  Effect.  There is no pending,  completed or, to the Company's
knowledge,  threatened,  action (including any lawsuit, arbitration, or legal or
administrative or regulatory proceeding,  charge,  complaint,  or investigation)
against the Company or any of its  Subsidiaries,  and none of the Company or any
of  its  Subsidiaries   has  received  any  notice,   warning  letter  or  other
communication from the FDA or any other governmental  entity, which (i) contests
the premarket clearance,  licensure,  registration, or approval of, the uses of,
the distribution of, the manufacturing or packaging of, the testing of, the sale
of, or the  labeling  and  promotion  of any FDA  Product,  (ii)  withdraws  its
approval  of,  requests the recall,  suspension,  or seizure of, or withdraws or
orders the withdrawal of advertising or sales promotional materials relating to,
any FDA Product,  (iii) imposes a clinical hold on any clinical investigation by
the Company or any of its Subsidiaries,  (iv) enjoins production at any facility
of the Company or any of its Subsidiaries,  (v) enters or proposes to enter into
a  consent  decree  of  permanent  injunction  with  the  Company  or any of its
Subsidiaries,  or (vi)  otherwise  alleges any  violation of any laws,  rules or
regulations  by  the  Company  or any of its  Subsidiaries,  and  which,  either
individually  or in the aggregate,  would have a Material  Adverse  Effect.  The
properties,  business  and  operations  of the  Company  have been and are being
conducted in all material respects in accordance with all applicable laws, rules
and  regulations  of the FDA. The Company has not been  informed by the FDA that
the FDA will prohibit the marketing,  sale,  license or use in the United States
of any product proposed to be developed, produced or marketed by the Company nor
to the Company's knowledge, has the FDA expressed any concern as to approving or
clearing for marketing  any product being  developed or proposed to be developed
by the Company.

     (ll) Stock Option Plans. Each stock option granted by the Company under the
Company's  stock option plan was granted (i) in accordance with the terms of the
Company's  stock  option plan and (ii) with an exercise  price at least equal to
the fair market value of the Common Stock on the date such stock option would be
considered  granted under GAAP and applicable law. No stock option granted under
the  Company's  stock  option  plan  has been  backdated.  The  Company  has not
knowingly granted, and there is no and has been no Company policy or practice to
knowingly grant, stock options prior to, or otherwise  knowingly  coordinate the
grant of stock  options  with,  the  release  or other  public  announcement  of
material  information  regarding  the  Company  or  its  Subsidiaries  or  their
financial results or prospects.

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

                                       21
<PAGE>
     (nn) U.S. Real  Property  Holding  Corporation.  The Company is not and has
never been a U.S.  real  property  holding  corporation  within  the  meaning of
Section 897 of the Internal  Revenue Code of 1986,  as amended,  and the Company
shall so certify upon Purchaser's request.

     (oo)  Bank  Holding  Company  Act.  Neither  the  Company  nor  any  of its
Subsidiaries  or Affiliates is subject to the Bank Holding  Company Act of 1956,
as amended  (the  "BHCA") and to  regulation  by the Board of  Governors  of the
Federal Reserve System (the "Federal  Reserve").  Neither the Company nor any of
its  Subsidiaries or Affiliates owns or controls,  directly or indirectly,  five
percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five  percent or more of the total equity of a bank or any entity that
is subject to the BHCA and to  regulation  by the Federal  Reserve.  Neither the
Company  nor any of its  Subsidiaries  or  Affiliates  exercises  a  controlling
influence  over the  management  or  policies  of a bank or any  entity  that is
subject to the BHCA and to regulation by the Federal Reserve.

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

     (rr) No  Disqualification  Events.  With  respect to the  Securities  to be
offered and sold  hereunder  in reliance on Rule 506 under the  Securities  Act,
none  of the  Company,  any of its  predecessors,  any  affiliated  issuer,  any
director,  executive officer,  other officer of the Company participating in the
offering  hereunder,  any  beneficial  owner  of 20% or  more  of the  Company's
outstanding voting equity  securities,  calculated on the basis of voting power,
nor any promoter (as that term is defined in Rule 405 under the Securities  Act)
connected with the Company in any capacity at the time of sale (each, an "Issuer
Covered Person" and,  together,  "Issuer Covered  Persons") is subject to any of
the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under
the Securities Act (a "Disqualification  Event"),  except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised  reasonable
care  to  determine   whether  any  Issuer   Covered  Person  is  subject  to  a
Disqualification Event. The Company has complied, to the extent applicable, with
its  disclosure  obligations  under  Rule  506(e),  and  has  furnished  to  the
Purchasers a copy of any disclosures provided thereunder.

     (ss) Other Covered Persons.  Other than the Placement Agent, the Company is
not aware of any person (other than any Issuer Covered  Person) that has been or
will  be  paid  (directly  or  indirectly)   remuneration  for  solicitation  of
purchasers in connection with the sale of any Regulation D Securities.

                                       22
<PAGE>
     (tt)  Notice of  Disqualification  Events.  The  Company  will  notify  the
Purchasers and the Placement Agent in writing,  prior to the Closing Date of (i)
any  Disqualification  Event  relating to any Issuer Covered Person and (ii) any
event that would,  with the  passage of time,  become a  Disqualification  Event
relating to any Issuer Covered Person.

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

     (a) Organization;  Authority.  Such Purchaser is either an individual or an
entity duly incorporated or formed,  validly existing and in good standing under
the laws of the jurisdiction of its  incorporation or formation with full right,
corporate, partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its  obligations  hereunder and thereunder.
The execution and delivery of the Transaction  Documents and performance by such
Purchaser of the  transactions  contemplated by the  Transaction  Documents have
been duly authorized by all necessary corporate,  partnership, limited liability
company or similar action,  as applicable,  on the part of such Purchaser.  Each
Transaction  Document  to which it is a party  has been  duly  executed  by such
Purchaser,  and when  delivered by such  Purchaser in accordance  with the terms
hereof,  will  constitute  the  valid and  legally  binding  obligation  of such
Purchaser,  enforceable against it in accordance with its terms,  except: (i) as
limited by general equitable principles and applicable  bankruptcy,  insolvency,
reorganization,  moratorium  and other  laws of  general  application  affecting
enforcement of creditors' rights generally,  (ii) as limited by laws relating to
the availability of specific  performance,  injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

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

     (c)  Purchaser   Status.  At  the  time  such  Purchaser  was  offered  the
Securities,  it was,  and as of the date hereof it is, and on each date on which
it exercises any Warrants or converts any  Debentures it will be an  "accredited

                                       23
<PAGE>
investor" as defined in Rule 501(a)(1),  (a)(2),  (a)(3), (a)(7) or (a)(8) under
the Securities Act.

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

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

     (f) Access to Information.  Such Purchaser acknowledges that it has had the
opportunity  to review the  Transaction  Documents  (including  all exhibits and
schedules thereto) and the SEC Reports and has been afforded (i) the opportunity
to ask such  questions  as it has deemed  necessary  of, and to receive  answers
from,  representatives of the Company concerning the terms and conditions of the
offering of the Shares and the merits and risks of investing in the Shares; (ii)
access to information about the Company and its financial condition,  results of
operations, business, properties,  management and prospects sufficient to enable
it to  evaluate  its  investment;  and (iii)  the  opportunity  to  obtain  such
additional  information  that  the  Company  possesses  or can  acquire  without
unreasonable  effort or expense that is necessary to make an informed investment
decision with respect to the investment.  Such Purchaser acknowledges and agrees
that neither the Placement  Agent nor any  Affiliate of the Placement  Agent has
provided  such  Purchaser  with any  information  or advice with  respect to the
Securities nor is such information or advice  necessary or desired.  Neither the
Placement Agent nor any Affiliate has made or makes any representation as to the
Company  or the  quality  of the  Securities  and the  Placement  Agent  and any
Affiliate may have acquired  non-public  information with respect to the Company
which such Purchaser  agrees need not be provided to it. In connection  with the
issuance of the Securities to such  Purchaser,  neither the Placement  Agent nor
any of its  Affiliates  has acted as a financial  advisor or  fiduciary  to such
Purchaser.

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

                                       24
<PAGE>
managers manage separate  portions of such Purchaser's  assets and the portfolio
managers  have no  direct  knowledge  of the  investment  decisions  made by the
portfolio  managers  managing other  portions of such  Purchaser's  assets,  the
representation  set forth above shall only apply with  respect to the portion of
assets  managed by the portfolio  manager that made the  investment  decision to
purchase the Securities  covered by this Agreement.  Other than to other Persons
party to this Agreement,  such Purchaser has maintained the  confidentiality  of
all disclosures  made to it in connection with this  transaction  (including the
existence and terms of this  transaction).  Notwithstanding  the foregoing,  for
avoidance of doubt,  nothing  contained herein shall constitute a representation
or warranty,  or preclude any actions, with respect to the identification of the
availability  of, or securing of,  available shares to borrow in order to effect
Short Sales or similar transactions in the future.

     (h) Restricted Securities. Such Purchaser has been advised that none of the
Securities have been registered under the Securities Act or any other applicable
securities  laws,  as described in Section 4.1 below,  and that Shares are being
offered and sold pursuant to Section  4(a)(2) of the  Securities Act and/or Rule
506 of  Regulation D thereunder,  and that the  Company's  reliance upon Section
4(a)(2)  and/or Rule 506 of Regulation D is predicated in part on such Purchaser
representations as contained herein.

     (i)  Disclosure.  The Purchaser  understands  and confirms that the Company
will  rely  on  the  foregoing   representation  in  effecting  transactions  in
securities of the Company.  All of the representations and warranties  furnished
by or on behalf of the  Purchaser to the Company in this  Agreement are true and
correct in all material respects.

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

                                  ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

     (a) The  Securities  may only be disposed of in  compliance  with state and
federal  securities  laws. In connection  with any transfer of Securities  other
than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of a Purchaser or in connection with a pledge as contemplated
in Section 4.1(b),  the Company may require the transferor thereof to provide to
the Company an opinion of counsel  selected  by the  transferor  and  reasonably
acceptable  to the Company,  the form and  substance of which  opinion  shall be
reasonably  satisfactory  to the Company,  to the effect that such transfer does
not require  registration of such  transferred  Securities  under the Securities
Act. As a condition of transfer,  any such transferee  shall agree in writing to

                                       25
<PAGE>
be  bound  by the  terms  of this  Agreement  and  shall  have  the  rights  and
obligations of a Purchaser under this Agreement.

     (b) The Purchasers agree to the imprinting,  so long as is required by this
Section 4.1, of a legend on any of the Securities in the following form:

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

     The Company  acknowledges and agrees that a Purchaser may from time to time
pledge pursuant to a bona fide margin agreement with a registered  broker-dealer
or grant a security  interest  in some or all of the  Securities  to a financial
institution that is an "accredited investor" as defined in Rule 501(a) under the
Securities  Act and who agrees to be bound by the  provisions of this  Agreement
and,  if  required  under  the terms of such  arrangement,  such  Purchaser  may
transfer pledged or secured Securities to the pledgees or secured parties.  Such
a pledge or  transfer  would not be subject to  approval  of the  Company and no
legal opinion of legal counsel of the pledgee, secured party or pledgor shall be
required in connection  therewith.  Further, no notice shall be required of such
pledge. At the appropriate Purchaser's expense, and upon reasonable request, the
Company will execute and deliver such reasonable  documentation  as a pledgee or
secured party of Securities may reasonably  request in connection  with a pledge
or transfer of the Securities.

     (c)  Certificates  evidencing the  Underlying  Shares shall not contain any
legend  (including the legend set forth in Section 4.1(b)  hereof):  (i) while a
Registration  Statement  covering the resale of such security is effective under
the Securities Act, (ii) following any sale of such  Underlying  Shares pursuant
to  Rule  144,  or  (iii)  if  such  legend  is not  required  under  applicable
requirements  of the  Securities  Act (including  judicial  interpretations  and
pronouncements  issued by the staff of the Commission).  The Company shall cause
its counsel to issue a legal opinion to the Transfer  Agent  promptly  after the
Effective  Date if required by the  Transfer  Agent to effect the removal of the

                                       26
<PAGE>
legend  hereunder so long as such removal is in accordance  with the  applicable
requirements  of the  Securities  Act. If all or any  portion of a Debenture  is
converted  or  Warrant  is  exercised  at a  time  when  there  is an  effective
registration  statement to cover the resale of the Underlying Shares, or if such
Underlying  Shares may be sold under Rule 144  without the  requirement  for the
Company to be in compliance with the current public  information  required under
Rule 144 as to such  Underlying  Shares  and  without  volume or  manner-of-sale
restrictions  or if such  legend  is not  otherwise  required  under  applicable
requirements  of the  Securities  Act (including  judicial  interpretations  and
pronouncements  issued by the  staff of the  Commission)  then  such  Underlying
Shares shall be issued free of all legends.  The Company  agrees that  following
the Effective  Date or at such time as such legend is no longer  required  under
this Section  4.1(c),  it will, no later than three  Trading Days  following the
delivery by a Purchaser  to the Company or the Transfer  Agent of a  certificate
representing Underlying Shares, as applicable,  issued with a restrictive legend
(such third  Trading Day,  the "Legend  Removal  Date"),  deliver or cause to be
delivered to such Purchaser a certificate  representing such shares that is free
from all restrictive and other legends. The Company may not make any notation on
its  records  or give  instructions  to the  Transfer  Agent  that  enlarge  the
restrictions  on  transfer  set  forth  in  this  Section  4.  Certificates  for
Underlying  Shares subject to legend removal  hereunder  shall be transmitted by
the Transfer Agent to the Purchaser by crediting the account of the  Purchaser's
prime  broker  with the  Depository  Trust  Company  System as  directed by such
Purchaser.

     (d) In addition to such Purchaser's other available  remedies,  the Company
shall pay to a  Purchaser,  in cash,  the  greater of (i) as partial  liquidated
damages and not as a penalty, for each $1,000 of Underlying Shares (based on the
VWAP of the  Common  Stock on the date  such  Securities  are  submitted  to the
Transfer Agent)  delivered for removal of the restrictive  legend and subject to
Section 4.1(c),  $10 per Trading Day (increasing to $20 per Trading Day five (5)
Trading Days after such damages have begun to accrue) for each Trading Day after
the Legend Removal Date until such certificate is delivered without a legend and
(ii) if the Company fails to (i) issue and deliver (or cause to be delivered) to
a  Purchaser  by the  Required  Delivery  Date a  certificate  representing  the
Securities so delivered to the Company by such  Purchaser  that is free from all
restrictive  and other legends or (ii) if after the Required  Delivery Date such
Purchaser  purchases  (in an open market  transaction  or  otherwise)  shares of
Common Stock to deliver in  satisfaction  of a sale by such  Purchaser of all or
any  portion of the number of shares of Common  Stock,  or a sale of a number of
shares of Common  Stock  equal to all or any  portion of the number of shares of
Common Stock that such Purchaser  anticipated receiving from the Company without
any restrictive legend,  then, an amount equal to the excess of such Purchaser's
total  purchase  price  (including  customary  brokerage  commissions  and other
out-of-pocket  expenses,  if any) for the  shares of Common  Stock so  purchased
(including customary brokerage commissions and other out-of-pocket  expenses, if
any) (the  "Buy-In  Price")  over the product of (A) such  number of  Underlying
Shares that the Company was required to deliver to such  Purchaser by the Legend
Removal Date multiplied by (B) the lowest closing sale price of the Common Stock
on any Trading Day during the period  commencing  on the date of the delivery by

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<PAGE>
such Purchaser to the Company of the applicable  Underlying  Shares (as the case
may be) and ending on the date of such  delivery  and payment  under this clause
(ii).

     (e) Each  Purchaser,  severally and not jointly with the other  Purchasers,
agrees with the Company that such Purchaser will sell any Securities pursuant to
either the  registration  requirements  of the  Securities  Act,  including  any
applicable prospectus delivery requirements, or an exemption therefrom, and that
if Securities are sold pursuant to a Registration  Statement,  they will be sold
in compliance with the plan of distribution set forth therein,  and acknowledges
that the  removal  of the  restrictive  legend  from  certificates  representing
Securities  as set forth in this Section 4.1 is  predicated  upon the  Company's
reliance upon this understanding.

     4.2 Acknowledgment of Dilution.  The Company acknowledges that the issuance
of the  Securities  may result in dilution of the  outstanding  shares of Common
Stock,  which dilution may be substantial under certain market  conditions.  The
Company  further   acknowledges  that  its  obligations  under  the  Transaction
Documents, including, without limitation, its obligation to issue the Underlying
Shares pursuant to the Transaction Documents, are unconditional and absolute and
not  subject  to any  right  of  set  off,  counterclaim,  delay  or  reduction,
regardless  of the effect of any such dilution or any claim the Company may have
against any Purchaser and  regardless of the dilutive  effect that such issuance
may have on the ownership of the other stockholders of the Company.

     4.3 Furnishing of Information; Public Information.

     (a) Until the earliest of the time that (i) no Purchaser owns Securities or
(ii)  the  Warrants  have  expired,   the  Company  covenants  to  maintain  the
registration  of the Common Stock under  Section  12(b) or 12(g) of the Exchange
Act and to timely file (or obtain  extensions in respect thereof and file within
the  applicable  grace  period) all reports  required to be filed by the Company
after the date hereof  pursuant to the  Exchange  Act even if the Company is not
then subject to the reporting requirements of the Exchange Act.

     (b) At any  time  during  the  period  commencing  from  the six (6)  month
anniversary  of the  date  hereof  and  ending  at  such  time  that  all of the
Securities  may be  sold  without  the  requirement  for  the  Company  to be in
compliance with Rule 144(c)(1) and otherwise  without  restriction or limitation
pursuant  to Rule 144,  if the  Company (i) shall fail for any reason to satisfy
the current public  information  requirement  under Rule 144(c) or (ii) has ever
been an issuer  described  in Rule 144  (i)(1)(i)  or  becomes  an issuer in the
future,  and the Company  shall fail to satisfy any  condition set forth in Rule
144(i)(2) (a "Public Information Failure") then, in addition to such Purchaser's
other  available  remedies,  the Company  shall pay to a Purchaser,  in cash, as
partial liquidated damages and not as a penalty,  by reason of any such delay in
or reduction of its ability to sell the  Securities,  an amount in cash equal to
two percent  (2.0%) of the  aggregate  Subscription  Amount of such  Purchaser's
Securities  on the day of a Public  Information  Failure and on every  thirtieth
(30th) day (pro rated for periods  totaling  less than thirty  days)  thereafter
until the earlier of (a) the date such Public  Information  Failure is cured and

                                       28
<PAGE>
(b) such  time that  such  public  information  is no  longer  required  for the
Purchasers to transfer the Underlying  Shares pursuant to Rule 144. The payments
to which a Purchaser  shall be  entitled  pursuant  to this  Section  4.3(b) are
referred to herein as "Public  Information Failure Payments." Public Information
Failure  Payments  shall  be paid on the  earlier  of (i)  the  last  day of the
calendar  month  during  which such  Public  Information  Failure  Payments  are
incurred and (ii) the third (3rd) Business Day after the event or failure giving
rise to the  Public  Information  Failure  Payments  is cured.  In the event the
Company fails to make Public  Information  Failure  Payments in a timely manner,
such Public Information Failure Payments shall bear interest at the rate of 1.5%
per month (prorated for partial months) until paid in full. Nothing herein shall
limit such Purchaser's right to pursue actual damages for the Public Information
Failure,  and such  Purchaser  shall  have  the  right to  pursue  all  remedies
available to it at law or in equity including,  without limitation,  a decree of
specific performance and/or injunctive relief.

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

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

     4.6 Securities Laws  Disclosure;  Publicity.  The Company shall (a) by 9:30
a.m.  (New York City time) on the Trading  Day  immediately  following  the date
hereof,  issue a press release disclosing the material terms of the transactions
contemplated  hereby,  and (b) file a Current Report on Form 8-K,  including the
Transaction  Documents as exhibits thereto,  with the Commission within the time
required by the Exchange Act. From and after the issuance of such press release,
the Company  represents to the Purchasers that it shall have publicly  disclosed
all material,  non-public  information delivered to any of the Purchasers by the
Company  or any of its  Subsidiaries,  or  any  of  their  respective  officers,
directors,  employees or agents in connection with the transactions contemplated
by the Transaction Documents.  The Company and each Purchaser shall consult with
each other in issuing any other press releases with respect to the  transactions
contemplated  hereby,  and neither the Company nor any Purchaser shall issue any
such press  release nor  otherwise  make any such public  statement  without the
prior  consent  of the  Company,  with  respect  to  any  press  release  of any

                                       29
<PAGE>
Purchaser,  or without the prior consent of each Purchaser,  with respect to any
press release of the Company,  which consent shall not  unreasonably be withheld
or  delayed,  except if such  disclosure  is  required by law, in which case the
disclosing  party shall  promptly  provide the other party with prior  notice of
such public  statement or  communication.  Notwithstanding  the  foregoing,  the
Company shall not publicly  disclose the name of any  Purchaser,  or include the
name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser,  except:
(a)  as  required  by  federal   securities  law  in  connection  with  (i)  any
registration  statement and (ii) the filing of final Transaction  Documents with
the  Commission  and (b) to the extent  such  disclosure  is  required by law or
Trading  Market  regulations,  in  which  case the  Company  shall  provide  the
Purchasers with prior notice of such disclosure permitted under this clause (b).

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

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

     4.9 Use of Proceeds.  Except as set forth on Schedule 4.9 attached  hereto,
the Company shall use the net proceeds from the sale of the Securities hereunder
for  working  capital  purposes  and  shall not use such  proceeds:  (a) for the
satisfaction  of any portion of the Company's  debt (other than payment of trade
payables in the ordinary  course of the Company's  business and consistent  with
prior  practices),  (b) for the  redemption  of any Common Stock or Common Stock
Equivalents,  (c) for the  settlement  of any  outstanding  litigation or (d) in
violation of FCPA or OFAC regulations.

     4.10  Indemnification  of  Purchasers.  Subject to the  provisions  of this
Section  4.10,  the  Company  will  indemnify  and hold each  Purchaser  and its
directors, officers, shareholders,  members, partners, employees and agents (and
any other Persons with a functionally  equivalent  role of a Person holding such
titles notwithstanding a lack of such title or any other title), each Person who
controls such Purchaser  (within the meaning of Section 15 of the Securities Act
and Section 20 of the Exchange Act), and the directors, officers,  shareholders,
agents,   members,   partners  or  employees  (and  any  other  Persons  with  a
functionally  equivalent role of a Person holding such titles  notwithstanding a
lack of such title or any other  title) of such  controlling  persons  (each,  a

                                       30
<PAGE>
"Purchaser Party") harmless from any and all losses,  liabilities,  obligations,
claims,  contingencies,  damages,  costs and expenses,  including all judgments,
amounts paid in  settlements,  court costs and  reasonable  attorneys'  fees and
costs of  investigation  that any such Purchaser  Party may suffer or incur as a
result  of or  relating  to (a)  any  breach  of  any  of  the  representations,
warranties,  covenants or agreements made by the Company in this Agreement or in
the  other  Transaction  Documents  or (b) any  action  instituted  against  the
Purchaser  Parties  in  any  capacity,  or  any  of  them  or  their  respective
Affiliates,  by any  stockholder  of the Company who is not an Affiliate of such
Purchaser  Party,  with respect to any of the  transactions  contemplated by the
Transaction  Documents  (unless  such  action  is based  upon a  breach  of such
Purchaser Party's representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser Party may have with
any such  stockholder  or any  violations  by such  Purchaser  Party of state or
federal securities laws or any conduct by such Purchaser Party which constitutes
fraud, gross negligence, willful misconduct or malfeasance). If any action shall
be brought  against any  Purchaser  Party in respect of which  indemnity  may be
sought  pursuant to this  Agreement,  such Purchaser Party shall promptly notify
the  Company  in  writing,  and the  Company  shall have the right to assume the
defense  thereof with counsel of its own choosing  reasonably  acceptable to the
Purchaser  Party.  Any Purchaser  Party shall have the right to employ  separate
counsel in any such action and participate in the defense thereof,  but the fees
and expenses of such  counsel  shall be at the expense of such  Purchaser  Party
except to the  extent  that (i) the  employment  thereof  has been  specifically
authorized  by the  Company in  writing,  (ii) the  Company  has failed  after a
reasonable  period of time to assume such defense and to employ counsel or (iii)
in such  action  there is, in the  reasonable  opinion  of  counsel,  a material
conflict  on any  material  issue  between  the  position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible
for the reasonable fees and expenses of no more than one such separate  counsel.
The Company will not be liable to any Purchaser  Party under this  Agreement (y)
for any  settlement by a Purchaser  Party effected  without the Company's  prior
written consent,  which shall not be unreasonably withheld or delayed; or (z) to
the extent,  but only to the extent that a loss,  claim,  damage or liability is
attributable  to any  Purchaser  Party's  breach of any of the  representations,
warranties,  covenants  or  agreements  made by  such  Purchaser  Party  in this
Agreement  or in the  other  Transaction  Documents  or any  violations  by such
Purchaser  Party of state or federal  securities laws  (demonstrated  by a final
judgment of any  applicable  tribunal)  or any conduct by such  Purchaser  Party
which constitutes  fraud,  gross negligence,  willful misconduct or malfeasance.
The  indemnification  required  by this  Section  4.10 shall be made by periodic
payments  of the  amount  thereof  during  the  course of the  investigation  or
defense,  as and  when  bills  are  received  or  are  incurred.  The  indemnity
agreements  contained  herein  shall be in  addition  to any  cause of action or
similar  right of any  Purchaser  Party  against  the  Company or others and any
liabilities the Company may be subject to pursuant to law.

     4.11 Reservation and Listing of Securities.

     (a) Subject to Section  4.11(b),  the Company shall maintain a reserve from
its duly  authorized  shares  of  Common  Stock  for  issuance  pursuant  to the
Transaction  Documents  in such  amount as may then be  required  to fulfill its
obligations in full under the Transaction Documents.

                                       31
<PAGE>
     (b) If, on any date,  the number of authorized  but unissued (and otherwise
unreserved)  shares of Common  Stock is less than the  Required  Minimum on such
date, then the Board of Directors shall use commercially  reasonable  efforts to
amend the Company's  certificate  or articles of  incorporation  to increase the
number  of  authorized  but  unissued  shares  of  Common  Stock to at least the
Required  Minimum at such time,  as soon as possible  and in any event not later
than the 75th day after such date.

     (c) The Company shall,  if applicable:  (i) in the time and manner required
by the principal  Trading  Market,  prepare and file with such Trading Market an
additional  shares  listing  application  covering  a number of shares of Common
Stock at least equal to the  Required  Minimum on the date of such  application,
(ii) take all  steps  necessary  to cause  such  shares  of  Common  Stock to be
approved for listing or  quotation  on such  Trading  Market as soon as possible
thereafter,  (iii)  provide  to the  Purchasers  evidence  of  such  listing  or
quotation and (iv) maintain the listing or quotation of such Common Stock on any
date at least equal to the Required  Minimum on such date on such Trading Market
or another Trading Market. The Company agrees to maintain the eligibility of the
Common Stock for electronic  transfer  through the  Depository  Trust Company or
another established  clearing  corporation,  including,  without limitation,  by
timely payment of fees to the Depository Trust Company or such other established
clearing corporation in connection with such electronic transfer.

     4.12 Participation in Future Financing.

     (a)  From  the  date  hereof  until  the  date  that  is the  twelve  month
anniversary of the Closing Date,  upon any issuance by the Company or any of its
Subsidiaries of Common Stock,  Common Stock Equivalents for cash  consideration,
Indebtedness or a combination of units hereof (a "Subsequent  Financing"),  each
Purchaser  shall  have  the  right  to  participate  in up to an  amount  of the
Subsequent   Financing   equal  to  100%  of  the   Subsequent   Financing  (the
"Participation Maximum") on the same terms, conditions and price provided for in
the Subsequent Financing.

     (b) At least five (5) Trading  Days prior to the closing of the  Subsequent
Financing,  the Company shall deliver to each  Purchaser a written notice of its
intention  to effect a Subsequent  Financing  ("Pre-Notice"),  which  Pre-Notice
shall ask such  Purchaser  if it wants to review the  details of such  financing
(such additional notice, a "Subsequent Financing Notice"). Upon the request of a
Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing
Notice, the Company shall promptly,  but no later than one (1) Trading Day after
such  request,  deliver a Subsequent  Financing  Notice to such  Purchaser.  The
Subsequent  Financing  Notice shall  describe in reasonable  detail the proposed
terms of such Subsequent Financing, the amount of proceeds intended to be raised
thereunder  and the  Person or  Persons  through  or with  whom such  Subsequent
Financing is proposed to be effected  and shall  include a term sheet or similar
document relating thereto as an attachment.

     (c) Any Purchaser desiring to participate in such Subsequent Financing must
provide written notice to the Company by not later than 5:30 p.m. (New York City

                                       32
<PAGE>
time) on the third (3rd) Trading Day after all of the  Purchasers  have received
the  Pre-Notice  that such Purchaser is willing to participate in the Subsequent
Financing,  the amount of such Purchaser's  participation,  and representing and
warranting that such Purchaser has such funds ready,  willing, and available for
investment on the terms set forth in the  Subsequent  Financing  Notice.  If the
Company  receives no such notice from a Purchaser as of such third (3rd) Trading
Day,  such  Purchaser  shall be deemed to have notified the Company that it does
not elect to participate.

     (d) If by 5:30 p.m.  (New York City time) on the third  (3rd ) Trading  Day
after all of the Purchasers have received the Pre-Notice,  notifications  by the
Purchasers of their  willingness to participate in the Subsequent  Financing (or
to cause their  designees to  participate)  is, in the aggregate,  less than the
total  amount of the  Participation  Maximum,  then the  Company  may effect the
remaining portion of such Subsequent Financing on the terms and with the Persons
set forth in the Subsequent Financing Notice.

     (e) If by 5:30 p.m.  (New York City time) on the third  (3rd)  Trading  Day
after all of the Purchasers have received the Pre-Notice,  the Company  receives
responses to a Subsequent  Financing Notice from Purchasers  seeking to purchase
more than the aggregate amount of the Participation Maximum, each such Purchaser
shall have the right to purchase its Pro Rata Portion (as defined  below) of the
Participation   Maximum.   "Pro  Rata  Portion"  means  the  ratio  of  (x)  the
Subscription  Amount of Securities  purchased on the Closing Date by a Purchaser
participating  under  this  Section  4.12  and  (y)  the  sum of  the  aggregate
Subscription  Amounts  of  Securities  purchased  on  the  Closing  Date  by all
Purchasers participating under this Section 4.12.

     (f) The  Company  must  provide  the  Purchasers  with a second  Subsequent
Financing Notice,  and the Purchasers will again have the right of participation
set forth above in this Section 4.12, if the Subsequent Financing subject to the
initial  Subsequent  Financing  Notice is not  consummated for any reason on the
terms set forth in such Subsequent  Financing  Notice within thirty (30) Trading
Days after the date of the initial Subsequent Financing Notice.

     (g) The Company and each  Purchaser  agree that if any Purchaser  elects to
participate in the Subsequent  Financing,  the transaction  documents related to
the Subsequent  Financing  shall not include any term or provision  whereby such
Purchaser shall be required to agree to any restrictions on trading as to any of
the Securities purchased hereunder or be required to consent to any amendment to
or  termination  of,  or grant  any  waiver,  release  or the  like  under or in
connection  with,  this  Agreement,  without the prior  written  consent of such
Purchaser.

     (h)  Notwithstanding  anything  to the  contrary in this  Section  4.12 and
unless otherwise  agreed to by such Purchaser,  the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent
Financing has been abandoned or shall  publicly  disclose its intention to issue
the securities in the Subsequent Financing, in either case in such a manner such
that  such  Purchaser  will not be in  possession  of any  material,  non-public
information,  by  the  tenth  (10th)  Business  Day  following  delivery  of the

                                       33
<PAGE>
Subsequent  Financing  Notice.  If by such tenth (10th)  Business Day, no public
disclosure  regarding a transaction with respect to the Subsequent Financing has
been made, and no notice  regarding the abandonment of such transaction has been
received  by such  Purchaser,  such  transaction  shall be  deemed  to have been
abandoned  and such  Purchaser  shall not be deemed to be in  possession  of any
material,  non-public  information  with  respect  to the  Company or any of its
Subsidiaries.

     (i)  Notwithstanding  the  foregoing,  this Section 4.12 shall not apply in
respect of an Exempt Issuance.

     4.13 Subsequent Equity Sales.

     (a) From the date hereof until such time as no  Purchaser  holds any of the
Debentures,  the Company shall be prohibited  from effecting or entering into an
agreement  to effect any issuance by the Company or any of its  Subsidiaries  of
Common Stock or Common Stock  Equivalents  (or a combination  of units  thereof)
involving a Variable  Rate  Transaction.  "Variable  Rate  Transaction"  means a
transaction in which the Company  issues or sells any debt or equity  securities
that are convertible into, exchangeable or exercisable for, or include the right
to receive,  additional shares of Common Stock either (A) at a conversion price,
exercise price or exchange rate or other price that is based upon, and/or varies
with,  the trading prices of or quotations for the shares of Common Stock at any
time after the initial issuance of such debt or equity  securities or (B) with a
conversion,  exercise or  exchange  price that is subject to being reset at some
future date after the initial  issuance of such debt or equity  security or upon
the occurrence of specified or contingent events directly or indirectly  related
to the  business of the Company or the market for the Common.  Purchasers  agree
and  acknowledge  that the Company may enter into an equity line of credit,  and
such  equity  line  shall  not  be   considered  a  breach  of  this   covenant.
Additionally,  Purchasers  agree and acknowledge that a transaction in which the
Company issues or sells any debt or equity  securities shall not be considered a
Variable Rate Transaction by reason of the fact that such  transaction  includes
price-based anti-dilution protection provisions. Any Purchaser shall be entitled
to obtain  injunctive  relief against the Company to preclude any such issuance,
which remedy shall be in addition to any right to collect damages.

     (b)  Notwithstanding  the  foregoing,  this Section 4.13 shall not apply in
respect of an Exempt Issuance, except that no Variable Rate Transaction shall be
an Exempt Issuance.

     4.14  Equal  Treatment  of  Purchasers.  No  consideration  (including  any
modification of any Transaction Document) shall be offered or paid to any Person
to  amend or  consent  to a  waiver  or  modification  of any  provision  of the
Transaction  Documents  unless the same  consideration is also offered to all of
the parties to such Transaction  Documents.  Further, the Company shall not make
any payment of  principal  or interest on the  Debentures  in amounts  which are
disproportionate  to  the  respective   principal  amounts  outstanding  on  the
Debentures at any applicable time. For  clarification  purposes,  this provision
constitutes  a separate  right  granted to each  Purchaser  by the  Company  and
negotiated  separately  by each  Purchaser,  and is intended  for the Company to

                                       34
<PAGE>
treat the  Purchasers  as a class and shall not in any way be  construed  as the
Purchasers  acting  in  concert  or as a group  with  respect  to the  purchase,
disposition or voting of Securities or otherwise.

     4.15 Certain  Transactions and Confidentiality.  Each Purchaser,  severally
and not jointly with the other  Purchasers,  covenants  that neither it, nor any
Affiliate  acting on its behalf or  pursuant to any  understanding  with it will
execute any purchases or sales,  including  Short Sales, of any of the Company's
securities during the period commencing with the execution of this Agreement and
ending at such time that the  transactions  contemplated  by this  Agreement are
first publicly  announced  pursuant to the initial press release as described in
Section  4.6.  Each  Purchaser,   severally  and  not  jointly  with  the  other
Purchasers,  covenants that until such time as the transactions  contemplated by
this  Agreement  are publicly  disclosed by the Company  pursuant to the initial
press  release as described in Section 4.6,  such  Purchaser  will  maintain the
confidentiality  of  the  existence  and  terms  of  this  transaction  and  the
information included in the Transaction  Documents and the Disclosure Schedules.
Additionally,  each  Purchaser  agrees that so long as any of its  Debentures or
Warrants  remains  outstanding,  such  Purchaser  will not enter  into or effect
"short  sales"  of the  Company's  common  stock or  hedging  transaction  which
establishes  a net  short  position  with  respect  to the  Common  Stock of the
Company.  For clarity,  any short  position which could be covered by Underlying
Shares shall not be considered net short for purposes of this Agreement.  Except
as  expressly  provided  by  the  preceding  sentence,   the  Company  expressly
acknowledges and agrees that (i) no Purchaser makes any representation, warranty
or covenant  hereby  that it will not engage in  effecting  transactions  in any
securities of the Company after the time that the  transactions  contemplated by
this  Agreement  are first  publicly  announced  pursuant to the  initial  press
release as described in Section 4.6,  (ii) no Purchaser  shall be  restricted or
prohibited  from effecting any  transactions in any securities of the Company in
accordance  with  applicable  securities  laws  from and after the time that the
transactions  contemplated  by  this  Agreement  are  first  publicly  announced
pursuant to the initial  press  release as described in Section 4.6 and (iii) no
Purchaser  shall  have any duty of  confidentiality  or duty not to trade in the
securities of the Company to the Company or its Subsidiaries  after the issuance
of the initial  press release as described in Section 4.6.  Notwithstanding  the
foregoing, in the case of a Purchaser that is a multi-managed investment vehicle
whereby separate portfolio managers manage separate portions of such Purchaser's
assets and the  portfolio  managers have no direct  knowledge of the  investment
decisions  made  by the  portfolio  managers  managing  other  portions  of such
Purchaser's  assets,  the covenant set forth above shall only apply with respect
to the  portion  of  assets  managed  by the  portfolio  manager  that  made the
investment decision to purchase the Securities covered by this Agreement.

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

     4.17 Capital  Changes.  Until the one year anniversary of the Closing Date,
the  Company   shall  not   undertake  a  reverse  or  forward  stock  split  or

                                       35
<PAGE>
reclassification  of the Common Stock without the prior  written  consent of the
Purchasers holding a majority in principal amount outstanding of the Debentures;
provided however,  that a reverse or forward stock split or  reclassification of
the Common  Stock in  connection  with the  uplisting  of the Common  Stock to a
national  securities exchange shall not require any prior written consent of the
Purchasers.

                                    ARTICLE V.
                                  MISCELLANEOUS

     5.1 Termination.  This Agreement may be terminated by any Purchaser,  as to
such Purchaser's obligations hereunder only and without any effect whatsoever on
the obligations between the Company and the other Purchasers,  by written notice
to the other  parties,  if the  Closing  has not been  consummated  on or before
December 31, 2014; provided,  however, that such termination will not affect the
right of any party to sue for any breach by any other party (or parties).

     5.2 Fees and Expenses.  At the Closing, the Company has agreed to reimburse
Anson Investments Master Fund, L.P. ("Anson") the non-accountable sum of $20,000
for its legal fees and expenses. Accordingly, in lieu of the foregoing payments,
the  aggregate  amount  that Anson shall pay for the  Securities  at the Closing
shall be reduced by $20,000 in lieu  thereof.  Except as expressly  set forth in
the  Transaction  Documents to the  contrary,  each party shall pay the fees and
expenses of its advisers,  counsel,  accountants and other experts,  if any, and
all  other  expenses  incurred  by  such  party  incident  to  the  negotiation,
preparation,  execution, delivery and performance of this Agreement. The Company
shall pay all  Transfer  Agent fees  (including,  without  limitation,  any fees
required for same-day  processing  of any  instruction  letter  delivered by the
Company and any conversion or exercise notice  delivered by a Purchaser),  stamp
taxes and other taxes and duties levied in  connection  with the delivery of any
Securities to the Purchasers.

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

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

                                       36
<PAGE>
shall be as set forth on the signature pages attached hereto. To the extent that
any  notice  provided  pursuant  to any  Transaction  Document  constitutes,  or
contains,  material,  non-public information regarding the Company or any of the
Subsidiaries,  the  Company  shall  simultaneously  file  such  notice  with the
Commission pursuant to a Current Report on Form 8-K.

     5.5  Amendments;  Waivers.  No provision of this  Agreement  may be waived,
modified,  supplemented or amended except in a written instrument signed, in the
case of an amendment,  by the Company and the Purchasers holding at least 67% in
interest of the Securities then outstanding or, in the case of a waiver,  by the
party against whom enforcement of any such waived provision is sought; provided,
that if any amendment,  modification or waiver  disproportionately and adversely
impacts  a   Purchaser   (or  group  of   Purchasers),   the   consent  of  such
disproportionately  impacted  Purchaser (or group of  Purchasers)  shall also be
required.  No waiver of any default with respect to any provision,  condition or
requirement of this Agreement  shall be deemed to be a continuing  waiver in the
future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise  any right  hereunder  in any manner  impair the  exercise  of any such
right.

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

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

     5.8 No Third Party  Beneficiaries.  The Placement  Agent shall be the third
party  beneficiary  of the  representations  and  warranties  of the  Company in
Section 3.1 and the  representations and warranties of the Purchasers in Section
3.2. This  Agreement is intended for the benefit of the parties hereto and their
respective  successors and permitted  assigns and is not for the benefit of, nor
may any provision  hereof be enforced by, any other Person,  except as otherwise
set forth in Section 4.10 and this Section 5.8.

     5.9 Governing  Law. All questions  concerning the  construction,  validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance  with the internal laws of the State of
New York,  without  regard to the  principles of conflicts of law thereof.  Each
party  agrees  that  all  legal  proceedings   concerning  the  interpretations,
enforcement and defense of the  transactions  contemplated by this Agreement and
any other Transaction  Documents  (whether brought against a party hereto or its
respective affiliates,  directors,  officers,  shareholders,  partners, members,
employees  or agents)  shall be commenced  exclusively  in the state and federal
courts sitting in the City of New York. Each party hereby irrevocably submits to
the exclusive  jurisdiction  of the state and federal courts sitting in the City
of New York,  Borough of Manhattan for the adjudication of any dispute hereunder
or in  connection  herewith  or with  any  transaction  contemplated  hereby  or

                                       37
<PAGE>
discussed  herein  (including  with  respect  to the  enforcement  of any of the
Transaction Documents),  and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding,  any claim that it is not personally  subject
to the jurisdiction of any such court,  that such suit,  action or proceeding is
improper or is an  inconvenient  venue for such  proceeding.  Each party  hereby
irrevocably  waives  personal  service of process and consents to process  being
served in any such suit,  action or  proceeding  by mailing a copy  thereof  via
registered or certified  mail or overnight  delivery (with evidence of delivery)
to such party at the  address in effect for  notices to it under this  Agreement
and agrees that such service shall  constitute  good and  sufficient  service of
process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve  process in any other  manner  permitted  by law.  If
either  party  shall  commence  an action,  suit or  proceeding  to enforce  any
provisions of the Transaction Documents, then, in addition to the obligations of
the Company under Section 4.10,  the  prevailing  party in such action,  suit or
proceeding shall be reimbursed by the other party for its reasonable  attorneys'
fees and other costs and expenses incurred with the  investigation,  preparation
and prosecution of such action or proceeding.

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

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

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

     5.13  Rescission  and  Withdrawal  Right.  Notwithstanding  anything to the
contrary  contained in (and without  limiting any similar  provisions of) any of
the other  Transaction  Documents,  whenever  any  Purchaser  exercises a right,
election, demand or option under a Transaction Document and the Company does not
timely perform its related obligations within the periods therein provided, then
such Purchaser may rescind or withdraw, in its sole discretion from time to time
upon written notice to the Company,  any relevant notice,  demand or election in
whole or in part without  prejudice to its future actions and rights;  provided,
however,  that in the case of a  rescission  of a  conversion  of a Debenture or

                                       38
<PAGE>
exercise of a Warrant,  the applicable Purchaser shall be required to return any
shares of Common  Stock  subject to any such  rescinded  conversion  or exercise
notice  concurrently with the return to such Purchaser of the aggregate exercise
price  paid  to the  Company  for  such  shares  and  the  restoration  of  such
Purchaser's  right to acquire such shares pursuant to such  Purchaser's  Warrant
(including,  issuance  of a  replacement  warrant  certificate  evidencing  such
restored right).

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

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

     5.16 Payment Set Aside.  To the extent that the Company  makes a payment or
payments to any Purchaser  pursuant to any  Transaction  Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such  enforcement  or exercise or any part thereof are  subsequently
invalidated,  declared to be fraudulent or  preferential,  set aside,  recovered
from, disgorged by or are required to be refunded,  repaid or otherwise restored
to the  Company,  a  trustee,  receiver  or  any  other  Person  under  any  law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable  cause of action),  then to the extent of any such  restoration
the  obligation  or part thereof  originally  intended to be satisfied  shall be
revived and  continued  in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

     5.17 Usury.  To the extent it may lawfully do so, the Company hereby agrees
not to insist upon or plead or in any manner  whatsoever  claim, and will resist
any and all efforts to be compelled  to take the benefit or advantage  of, usury
laws wherever enacted, now or at any time hereafter in force, in connection with
any claim, action or proceeding that may be brought by any Purchaser in order to
enforce any right or remedy under any Transaction Document.  Notwithstanding any
provision to the contrary contained in any Transaction Document, it is expressly
agreed  and  provided  that  the  total  liability  of  the  Company  under  the
Transaction  Documents  for payments in the nature of interest  shall not exceed
the maximum lawful rate authorized  under  applicable law (the "Maximum  Rate"),
and, without  limiting the foregoing,  in no event shall any rate of interest or
default  interest,  or both of them,  when aggregated with any other sums in the
nature  of  interest  that  the  Company  may  be  obligated  to pay  under  the
Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum

                                       39
<PAGE>
contract  rate of  interest  allowed by law and  applicable  to the  Transaction
Documents is  increased  or  decreased  by statute or any official  governmental
action subsequent to the date hereof,  the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction  Documents
from the effective date thereof forward, unless such application is precluded by
applicable law. If under any circumstances whatsoever, interest in excess of the
Maximum  Rate  is  paid  by  the  Company  to  any  Purchaser  with  respect  to
indebtedness  evidenced  by the  Transaction  Documents,  such  excess  shall be
applied  by  such  Purchaser  to  the  unpaid  principal  balance  of  any  such
indebtedness  or be refunded to the Company,  the manner of handling such excess
to be at such Purchaser's election.

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

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

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

     5.21  Construction.  The  parties  agree  that  each of them  and/or  their
respective   counsel  have  reviewed  and  had  an  opportunity  to  revise  the
Transaction  Documents and,  therefore,  the normal rule of  construction to the
effect that any ambiguities are to be resolved  against the drafting party shall
not be  employed  in the  interpretation  of the  Transaction  Documents  or any

                                       40
<PAGE>
amendments  thereto.  In addition,  each and every reference to share prices and
shares  of  Common  Stock  in any  Transaction  Document  shall  be  subject  to
adjustment  for  reverse  and  forward  stock  splits,  stock  dividends,  stock
combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

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

                            (SIGNATURE PAGES FOLLOW)

                                       41
<PAGE>
     IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase
Agreement to be duly executed by their respective  authorized  signatories as of
the date first indicated above.

STEVIA CORP.                                      Address for Notice:

By:___________________________________            Fax:

Name: George Blankenbaker
Title: President
With a copy to (which shall not constitute notice):

Greenberg Traurig, LLP
Attn: Mark Lee
1201 K Street, Suite 1200
Sacramento, CA 95814

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       42
<PAGE>
        [PURCHASER SIGNATURE PAGES TO stev SECURITIES PURCHASE AGREEMENT]

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

Name of Purchaser: ____________________________________________________________

Signature of Authorized Signatory of Purchaser: _______________________________

Name of Authorized Signatory: _________________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory: ________________________________________

Facsimile Number of Authorized Signatory: _____________________________________

Address for Notice to Purchaser:

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

Subscription Amount: _____________

Principal Amount (1.25 x Subscription Amount): _____________

Warrant Shares: _________________

EIN Number: _______________________

                           [SIGNATURE PAGES CONTINUE]

                                       43Exhibit 10.2

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

Original Issue Date: December 30, 2014
Original Conversion Price (subject to adjustment herein): $0.125

                                                                      $1,250,000

              ORIGINAL ISSUE DISCOUNT SENIOR CONVERTIBLE DEBENTURE
                                DUE JUNE 30, 2016

     THIS  ORIGINAL  ISSUE  DISCOUNT  SENIOR  CONVERTIBLE  DEBENTURE is one of a
series of duly  authorized  and validly issued  Original  Issue Discount  Senior
Convertible  Debentures of Stevia Corp., a Nevada corporation,  (the "Company"),
having its principal  place of business at 7117 US 31 S,  Indianapolis,  Indiana
46227,  designated as its Original Issue Discount Senior  Convertible  Debenture
due June 30, 2016 (this debenture,  the "Debenture" and,  collectively  with the
other debentures of such series, the "Debentures").

     FOR VALUE RECEIVED, the Company promises to pay to ANSON INVESTMENTS MASTER
FUND LP or its registered assigns (the "Holder"), or shall have paid pursuant to
the terms  hereunder,  the  principal  sum of  $1,250,000  on June 30, 2016 (the
"Maturity Date") or such earlier date as this Debenture is required or permitted
to be repaid as  provided  hereunder,  and to pay  interest to the Holder on the
aggregate unconverted and then outstanding principal amount of this Debenture in
accordance  with  the  provisions  hereof.  This  Debenture  is  subject  to the
following additional provisions:

     Section 1.  Definitions.  For the purposes hereof, in addition to the terms
defined elsewhere in this Debenture, (a) capitalized terms not otherwise defined
herein shall have the meanings set forth in the Purchase  Agreement  and (b) the
following terms shall have the following meanings:

     "Alternate Consideration" shall have the meaning set forth in Section 5(e).

                                       1
<PAGE>
     "Authorized  Share Increase" means the amendment of the Company's  Articles
of Incorporation to increase the number of authorized  shares of Common Stock to
not less than 400,000,000.

     "Bankruptcy  Event" means any of the following  events:  (a) the Company or
any  Significant  Subsidiary  (as  such  term  is  defined  in Rule  1-02(w)  of
Regulation  S-X)  thereof  commences  a  case  or  other  proceeding  under  any
bankruptcy, reorganization,  arrangement, adjustment of debt, relief of debtors,
dissolution,  insolvency  or  liquidation  or  similar  law of any  jurisdiction
relating  to the Company or any  Significant  Subsidiary  thereof,  (b) there is
commenced  against the Company or any  Significant  Subsidiary  thereof any such
case or proceeding that is not dismissed within 60 days after commencement,  (c)
the Company or any Significant  Subsidiary  thereof is adjudicated  insolvent or
bankrupt  or any  order of  relief  or other  order  approving  any such case or
proceeding is entered,  (d) the Company or any  Significant  Subsidiary  thereof
suffers any  appointment of any custodian or the like for it or any  substantial
part of its property  that is not  discharged  or stayed within 60 calendar days
after such appointment,  (e) the Company or any Significant  Subsidiary  thereof
makes a general assignment for the benefit of creditors,  (f) the Company or any
Significant  Subsidiary  thereof calls a meeting of its creditors with a view to
arranging a  composition,  adjustment or  restructuring  of its debts or (g) the
Company or any  Significant  Subsidiary  thereof,  by any act or failure to act,
expressly  indicates its consent to,  approval of or  acquiescence in any of the
foregoing  or takes any  corporate  or other action for the purpose of effecting
any of the foregoing.

     "Base Conversion Price" shall have the meaning set forth in Section 5(b).

     "Beneficial  Ownership  Limitation"  shall  have the  meaning  set forth in
Section 4(d).

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

     "Buy-In" shall have the meaning set forth in Section 4(c)(v).

     "Change of Control  Transaction" means the occurrence after the date hereof
of any of (a) an  acquisition  after the date hereof by an  individual  or legal
entity or  "group"  (as  described  in Rule  13d-5(b)(1)  promulgated  under the
Exchange  Act)  of  effective  control  (whether  through  legal  or  beneficial
ownership  of capital  stock of the  Company,  by contract or  otherwise)  of in
excess of 33% of the voting  securities  of the Company  (other than by means of
conversion or exercise of the Debentures and the Securities issued together with
the  Debentures),  (b) the Company  merges into or  consolidates  with any other
Person,  or any Person merges into or  consolidates  with the Company and, after
giving effect to such transaction,  the stockholders of the Company  immediately

                                       2
<PAGE>
prior to such transaction own less than 66% of the aggregate voting power of the
Company or the successor  entity of such  transaction,  (c) the Company sells or
transfers  all or  substantially  all of its  assets to  another  Person and the
stockholders of the Company  immediately prior to such transaction own less than
66% of the aggregate voting power of the acquiring entity  immediately after the
transaction, (d) a replacement at one time or within a three year period of more
than one-half of the members of the Board of Directors  which is not approved by
one or more of those  individuals  who are members of the Board of  Directors on
the Original Issue Date (or by those  individuals  who are serving as members of
the Board of  Directors on any date whose  nomination  to the Board of Directors
was  approved  by one or more of the members of the Board of  Directors  who are
members on the date hereof), or (e) the execution by the Company of an agreement
to which the  Company is a party or by which it is bound,  providing  for any of
the events set forth in clauses (a) through (d) above.

     "Conversion" shall have the meaning ascribed to such term in Section 4.

     "Conversion Date" shall have the meaning set forth in Section 4(a).

     "Conversion Price" shall have the meaning set forth in Section 4(b).

     "Conversion Schedule" means the Conversion Schedule in the form of Schedule
1 attached hereto.

     "Conversion  Shares"  means,  collectively,  the  shares  of  Common  Stock
issuable upon conversion of this Debenture in accordance with the terms hereof.

     "Debenture Register" shall have the meaning set forth in Section 2(c).

     "Dilutive Issuance" shall have the meaning set forth in Section 5(b).

     "Dilutive  Issuance  Notice"  shall have the  meaning  set forth in Section
5(b).

     "Equity Conditions" means,  during the period in question,  (a) the Company
shall have duly honored all conversions  and  redemptions  scheduled to occur or
occurring by virtue of one or more Notices of Conversion of the Holder,  if any,
(b) the Company shall have paid all  liquidated  damages and other amounts owing
to the  Holder  in  respect  of this  Debenture,  (c)(i)  there is an  effective
Registration  Statement pursuant to which the Holder is permitted to utilize the
prospectus  thereunder to resell all of the  Conversion  Shares (and the Company
believes, in good faith, that such effectiveness will continue uninterrupted for
the foreseeable  future) or (ii) all of the Conversion  Shares issuable pursuant
to the  Transaction  Documents (and shares  issuable in lieu of cash payments of
interest) may be resold  pursuant to Rule 144 without  volume or  manner-of-sale
restrictions  as  determined  by the  counsel  to the  Company as set forth in a
written opinion letter to such effect,  addressed and acceptable to the Transfer
Agent and the Holder,  (d) the Common  Stock is trading on a Trading  Market and
all of the shares issuable  pursuant to the Transaction  Documents are listed or

                                       3
<PAGE>
quoted for trading on such  Trading  Market (and the Company  believes,  in good
faith,  that  trading  of the Common  Stock on a Trading  Market  will  continue
uninterrupted for the foreseeable  future),  (e) there is a sufficient number of
authorized but unissued and otherwise  unreserved shares of Common Stock for the
issuance of all of the  Conversion  Shares,  (f) there is no  existing  Event of
Default and no existing  event which,  with the passage of time or the giving of
notice, would constitute an Event of Default, (g) the issuance of the Conversion
Shares  in  question  (or,  in the case of an  Optional  Redemption  or  Monthly
Redemption,  the  shares  issuable  upon  conversion  in  full  of the  Optional
Redemption Amount or Monthly  Redemption Amount) to the Holder would not violate
the  limitations  set forth in Section  4(d) herein  (excluding  any  Conversion
Sahres that may be  issuable  without  violating  the  linitations  set forth in
Section  4(d)),  (h)  there  has been no public  announcement  of a  pending  or
proposed  Fundamental  Transaction or Change of Control Transaction that has not
been  consummated,  (i)  the  applicable  Holder  is  not in  possession  of any
information  provided  by the  Company  that  constitutes,  or  may  constitute,
material  non-public  information,  (j) for each  Trading  Day in a period of 20
consecutive  Trading Days prior to the  applicable  date in question,  the daily
trading  volume for the Common Stock on the  principal  Trading  Market  exceeds
$20,000,  and (k) the Conversion Shares are deliverable via DWAC and there is no
"chill" in effect at the Depository Trust Company.

     "Event of Default" shall have the meaning set forth in Section 8(a).

     "Forced Conversion" shall have the meaning set forth in Section 6(d).

     "Forced Conversion Date" shall have the meaning set forth in Section 6(d).

     "Forced  Conversion  Notice"  shall have the  meaning  set forth in Section
6(d).

     "Forced Conversion Notice Date" shall have the meaning set forth in Section
6(d).

     "Fundamental Transaction" shall have the meaning set forth in Section 5(e).

     "Interest Payment Date" shall have the meaning set forth in Section 2(a).

     "Late Fees" shall have the meaning set forth in Section 2(d).

                                       4
<PAGE>
     "Mandatory  Default  Amount"  means the sum of (a) the  greater  of (i) the
outstanding  principal  amount of this  Debenture,  plus all  accrued and unpaid
interest  hereon,  divided  by the  Conversion  Price on the date the  Mandatory
Default Amount is either (A) demanded (if demand or notice is required to create
an Event of Default) or otherwise due or (B) paid in full, whichever has a lower
Conversion  Price,  multiplied  by the VWAP on the date  the  Mandatory  Default
Amount is either (x)  demanded or otherwise  due or (y) paid in full,  whichever
has a higher  VWAP,  or (ii) 125% of the  outstanding  principal  amount of this
Debenture,  plus 100% of accrued and unpaid interest  hereon,  and (b) all other
amounts,  costs,  expenses  and  liquidated  damages  due  in  respect  of  this
Debenture.

     "Monthly  Conversion  Period"  shall have the  meaning set forth in Section
6(b) hereof.

     "Monthly Conversion Price" shall have the meaning set forth in Section 6(b)
hereof.

     "Monthly  Redemption"  means the redemption of this  Debenture  pursuant to
Section 6(b) hereof.

     "Monthly  Redemption  Amount" means, as to a Monthly  Redemption,  $104,167
multiplied by 1.015,  plus accrued but unpaid interest,  liquidated  damages and
any other amounts then owing to the Holder in respect of this Debenture.

     "Monthly  Redemption Date" means the 1st of each month,  commencing July 1,
2015, and terminating upon the full redemption of this Debenture.

     "Monthly  Redemption  Notice"  shall have the  meaning set forth in Section
6(b) hereof.

     "New York Courts" shall have the meaning set forth in Section 9(d).

     "Notice of Conversion" shall have the meaning set forth in Section 4(a).

     "Optional Redemption" shall have the meaning set forth in Section 6(a).

     "Optional  Redemption  Amount"  means  the  sum of  (a)  100%  of the  then
outstanding  principal amount of the Debenture,  (b) accrued but unpaid interest
and  (c)  all  liquidated  damages  and  other  amounts  due in  respect  of the
Debenture.

     "Optional  Redemption  Date"  shall have the  meaning  set forth in Section
6(a).

                                       5
<PAGE>
     "Optional  Redemption  Notice"  shall have the meaning set forth in Section
6(a).

     "Optional  Redemption  Notice  Date"  shall have the  meaning  set forth in
Section 6(a).

     "Optional  Redemption  Period"  shall have the meaning set forth in Section
6(a).

     "Original  Issue  Date"  means  the  date  of  the  first  issuance  of the
Debentures,  regardless of any transfers of any Debenture and  regardless of the
number of instruments which may be issued to evidence such Debentures.

     "Permitted  Indebtedness"  means  (a)  the  indebtedness  evidenced  by the
Debentures,  (b) the  Indebtedness  existing on the Original  Issue Date and set
forth on Schedule  3.1(aa)  attached to the  Purchase  Agreement,  and (c) lease
obligations  and  purchase  money  indebtedness  of  up  to  $5,000,000  in  the
aggregate,  incurred in connection  with the  acquisition  of capital assets and
lease  obligations  with respect to newly acquired or leased  assets,  (d) trade
payables  incurred  in the  ordinary  course of  business  consistent  with past
practice,  (e)  unsecured  indebtedness  incurred  by the  Company  that is made
expressly subordinate in right of payment to the Indebtedness  evidenced by this
Debenture, and (f) loans from a bank or similar financial institution

     "Permitted  Lien" means the  individual  and  collective  reference  to the
following:  (a) Liens for taxes,  assessments and other governmental  charges or
levies  not yet due or Liens  for  taxes,  assessments  and  other  governmental
charges or levies being  contested in good faith and by appropriate  proceedings
for which adequate reserves (in the good faith judgment of the management of the
Company) have been established in accordance with GAAP, (b) Liens imposed by law
which were incurred in the ordinary  course of the Company's  business,  such as
carriers',  warehousemen's and mechanics' Liens, statutory landlords' Liens, and
other similar Liens  arising in the ordinary  course of the Company's  business,
and which (x) do not  individually or in the aggregate  materially  detract from
the value of such property or assets or materially impair the use thereof in the
operation of the business of the Company and its  consolidated  Subsidiaries  or
(y) are  being  contested  in  good  faith  by  appropriate  proceedings,  which
proceedings  have the  effect  of  preventing  for the  foreseeable  future  the
forfeiture  or sale of the  property  or asset  subject to such Lien,  (c) Liens
incurred in connection with Permitted  Indebtedness  under clauses (a), (b), (d)
and  (f)  thereunder,  and (d)  Liens  incurred  in  connection  with  Permitted
Indebtedness  under clause (c) or (e)  thereunder,  provided that such Liens are
not secured by assets of the Company or its  Subsidiaries  other than the assets
so acquired or leased,  (e) leases or subleases  and  licenses  and  sublicenses
granted  to  others  in the  ordinary  course  of the  Company's  business,  not
interfering  in any  material  respect  with the business of the Company and its
Subsidiaries  taken as a whole,  (f)  Liens in  favor  of  customs  and  revenue

                                       6
<PAGE>
authorities  arising as a matter of law to secure  payments of custom  duties in
connection with the importation of goods,  and (g) Liens arising from judgments,
decrees or attachments in circumstances not constituting an Event of Default.

     "Purchase  Agreement" means the Securities Purchase Agreement,  dated as of
December  30,  2014 among the  Company  and the  original  Holders,  as amended,
modified or supplemented from time to time in accordance with its terms.

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

     "Share Delivery Date" shall have the meaning set forth in Section 4(c)(ii).

     "Successor Entity" shall have the meaning set forth in Section 5(e).

     "Threshold Period" shall have the meaning set forth in Section 6(d).

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

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

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

                                       7
<PAGE>
     Section 2. Interest.

     a)  Payment  of  Interest  in Cash.  Upon the  occurrence  and  during  the
continuance  of an Event of Default (and not  otherwise),  the Company shall pay
interest  to the  Holder  on the  aggregate  unconverted  and  then  outstanding
principal amount of this Debenture at the rate of 2% per month,  payable monthly
on the first Business Day of each month (pro rated for any partial months) (each
such date, an "Interest Payment Date"), in cash.

     b) Interest  Calculations.  Interest  shall be calculated on the basis of a
360-day  year,  consisting  of twelve 30 calendar day periods,  and shall accrue
daily  commencing  on the date of the  Event of  Default  until the  earlier  of
payment in full of the  outstanding  principal,  together  with all  accrued and
unpaid  interest,  liquidated  damages  and other  amounts  which may become due
hereunder,  has  been  made,  or the  cure of the  Event  of  Default.  Interest
hereunder  will be paid to the Person in whose name this Debenture is registered
on the records of the  Company  regarding  registration  and  transfers  of this
Debenture (the "Debenture Register").

     c) Late Fee. All overdue  accrued and unpaid  interest to be paid hereunder
shall entail a late fee at an interest rate equal to the lesser of 18% per annum
or the maximum rate  permitted by  applicable  law (the "Late Fees") which shall
accrue  daily from the date such  interest  12hall be  affected by notice to the
contrary.

     Section 4. Conversion.

     a) Voluntary  Conversion.  At any time after the Original  Issue Date until
this Debenture is no longer outstanding, this Debenture shall be convertible, in
whole or in part,  into shares of Common  Stock at the option of the Holder,  at
any time and from time to time (subject to the conversion  limitations set forth
in Section 4(d) hereof).  The Holder shall effect  conversions  by delivering to
the  Company a Notice of  Conversion,  the form of which is  attached  hereto as
Annex A (each,  a "Notice of  Conversion"),  specifying  therein  the  principal
amount of this  Debenture to be converted and the date on which such  conversion
shall be effected (such date, the "Conversion  Date").  If no Conversion Date is
specified in a Notice of Conversion,  the Conversion Date shall be the date that
such Notice of Conversion is deemed delivered hereunder.  No ink-original Notice
of Conversion  shall be required,  nor shall any  medallion  guarantee (or other
type of guarantee or notarization) of any Notice of Conversion form be required.
To effect conversions hereunder,  the Holder shall not be required to physically
surrender this Debenture to the Company  unless the entire  principal  amount of
this  Debenture,  plus all  accrued  and unpaid  interest  thereon,  has been so
converted.   Conversions  hereunder  shall  have  the  effect  of  lowering  the
outstanding  principal  amount  of this  Debenture  in an  amount  equal  to the

                                       8
<PAGE>
applicable conversion. The Holder and the Company shall maintain records showing
the  principal  amount(s)  converted  and the  date of such  conversion(s).  The
Company  may deliver an  objection  to any Notice of  Conversion  within one (1)
Business  Day of  delivery  of such  Notice of  Conversion.  In the event of any
dispute or  discrepancy,  the  Company  shall  issue to the Holder the number of
shares not in dispute  and,  if the Company and the Holder are unable to resolve
the  dispute  within  three (3)  Business  days,  shall  refer the dispute to an
independent,  outside  accountant  selected  by the Company  that is  reasonably
acceptable to the Holder.  The Company shall cause the accountant to perform the
calculations  and notify the Company and the Holder of the results no later than
ten (10) Business Days from the time it receives the request.  Such accountant's
determination  shall be binding upon all parties absent  demonstrable error. THE
HOLDER, AND ANY ASSIGNEE BY ACCEPTANCE OF THIS DEBENTURE,  ACKNOWLEDGE AND AGREE
THAT, BY REASON OF THE PROVISIONS OF THIS PARAGRAPH,  FOLLOWING  CONVERSION OF A
PORTION OF THIS DEBENTURE,  THE UNPAID AND UNCONVERTED  PRINCIPAL AMOUNT OF THIS
DEBENTURE MAY BE LESS THAN THE AMOUNT STATED ON THE FACE HEREOF.

     b) Conversion  Price. The conversion price in effect on any Conversion Date
shall be equal to $0.125, subject to adjustment herein (the "Conversion Price").

     c) Mechanics of Conversion.

     i.  Conversion  Shares Issuable Upon  Conversion of Principal  Amount.  The
number of  Conversion  Shares  issuable  upon a  conversion  hereunder  shall be
determined by the quotient  obtained by dividing (x) the  outstanding  principal
amount of this Debenture to be converted by (y) the Conversion Price.

     ii.  Delivery of Shares Upon  Conversion.  Not later than three (3) Trading
Days after each Conversion Date (the "Share Delivery  Date"),  the Company shall
deliver,  or cause to be delivered,  to the Holder a certificate or certificates
representing the Conversion  Shares which, on or after the six month anniversary
of the  Original  Issue  Date  shall be  delivered  electronically  through  the
Depository Trust Company DWAC system or another established clearing corporation
performing similar functions.

     iii.  Failure  to  Deliver  Certificates.  If, in the case of any Notice of
Conversion, such certificate or certificates (or shares via DWAC, as applicable)
are not  delivered  to or as  directed  by the  applicable  Holder  by the Share

                                       9
<PAGE>
Delivery  Date,  the Holder shall be entitled to elect by written  notice to the
Company  at  any  time  on  or  before  its  receipt  of  such   certificate  or
certificates,  to rescind  such  Conversion,  in which event the  Company  shall
promptly  return to the Holder any original  Debenture  delivered to the Company
and  the  Holder  shall  promptly   return  to  the  Company  the  Common  Stock
certificates issued to such Holder pursuant to the rescinded Conversion Notice.

     iv.  Obligation   Absolute;   Partial  Liquidated  Damages.  The  Company's
obligations to issue and deliver the Conversion  Shares upon  conversion of this
Debenture in  accordance  with the terms hereof are absolute and  unconditional,
irrespective  of any action or inaction  by the Holder to enforce the same,  any
waiver or consent  with  respect to any  provision  hereof,  the recovery of any
judgment  against any Person or any action to enforce  the same,  or any setoff,
counterclaim,  recoupment,  limitation or termination,  or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any
violation  or alleged  violation of law by the Holder or any other  Person,  and
irrespective  of  any  other  circumstance  which  might  otherwise  limit  such
obligation of the Company to the Holder in connection  with the issuance of such
Conversion Shares; provided,  however, that such delivery shall not operate as a
waiver by the  Company  of any such  action the  Company  may have  against  the
Holder.  In the event the Holder of this Debenture shall elect to convert any or
all of the  outstanding  principal  amount  hereof,  the  Company may not refuse
conversion based on any claim that the Holder or anyone associated or affiliated
with the Holder has been engaged in any  violation of law,  agreement or for any
other  reason,  unless  an  injunction  from  a  court,  on  notice  to  Holder,
restraining  and or enjoining  conversion of all or part of this Debenture shall
have been  sought and  obtained,  and the  Company  posts a surety  bond for the
benefit of the Holder in the amount of 150% of the outstanding  principal amount
of this Debenture,  which is subject to the injunction,  which bond shall remain
in effect  until the  completion  of  arbitration/litigation  of the  underlying
dispute  and the  proceeds of which shall be payable to the Holder to the extent
it obtains judgment. In the absence of such injunction,  the Company shall issue
Conversion Shares or, if applicable,  cash, upon a properly noticed  conversion.
If the Company fails for any reason to deliver to the Holder such certificate or
certificates  pursuant  to Section  4(c)(ii)  by the Share  Delivery  Date,  the
Company shall pay to the Holder,  in cash,  as  liquidated  damages and not as a
penalty,  for each $1,000 of principal amount being  converted,  $10 per Trading
Day (increasing to $20 per Trading Day on the fifth (5th) Trading Day after such
liquidated  damages  begin to  accrue)  for each  Trading  Day after  such Share
Delivery  Date until such  certificates  are  delivered or Holder  rescinds such
conversion. Nothing herein shall limit a Holder's right to pursue actual damages

                                       10
<PAGE>
or declare an Event of Default  pursuant  to Section 8 hereof for the  Company's
failure to deliver  Conversion Shares within the period specified herein and the
Holder shall have the right to pursue all remedies available to it hereunder, at
law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief. The exercise of any such rights shall not prohibit the
Holder from seeking to enforce  damages  pursuant to any other Section hereof or
under applicable law.

     v.  Compensation for Buy-In on Failure to Timely Deliver  Certificates Upon
Conversion.  In addition to any other  rights  available  to the Holder,  if the
Company  fails for any  reason to  deliver to the  Holder  such  certificate  or
certificates  (or shares via DWAC,  as  applicable)  by the Share  Delivery Date
pursuant to Section  4(c)(ii),  and if after such Share Delivery Date the Holder
is required by its brokerage firm to purchase (in an open market  transaction or
otherwise), or the Holder's brokerage firm otherwise purchases, shares of Common
Stock to  deliver  in  satisfaction  of a sale by the  Holder of the  Conversion
Shares which the Holder was entitled to receive upon the conversion  relating to
such Share Delivery Date (a "Buy-In"), then the Company shall (A) pay in cash to
the Holder (in  addition to any other  remedies  available  to or elected by the
Holder)  the amount,  if any, by which (x) the  Holder's  total  purchase  price
(including any brokerage  commissions) for the Common Stock so purchased exceeds
(y) the product of (1) the  aggregate  number of shares of Common Stock that the
Holder was entitled to receive from the  conversion  at issue  multiplied by (2)
the  actual  sale  price at which the sell order  giving  rise to such  purchase
obligation  was executed  (including any brokerage  commissions)  and (B) at the
option of the  Holder,  either  reissue (if  surrendered)  this  Debenture  in a
principal amount equal to the principal  amount of the attempted  conversion (in
which case such conversion  shall be deemed  rescinded) or deliver to the Holder
the number of shares of Common  Stock that would have been issued if the Company
had timely complied with its delivery  requirements under Section 4(c)(ii).  For
example,  if the Holder  purchases Common Stock having a total purchase price of
$11,000  to cover a Buy-In  with  respect  to an  attempted  conversion  of this
Debenture with respect to which the actual sale price of the  Conversion  Shares
(including any brokerage  commissions)  giving rise to such purchase  obligation
was a total of $10,000 under clause (A) of the immediately  preceding  sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide
the Company  written  notice  indicating  the  amounts  payable to the Holder in
respect of the Buy-In and,  upon request of the Company,  evidence of the amount
of such loss.  Nothing  herein shall limit a Holder's  right to pursue any other
remedies  available  to it  hereunder,  at law or in equity  including,  without
limitation,  a decree of  specific  performance  and/or  injunctive  relief with
respect to the Company's  failure to timely  deliver  certificates  representing
shares of Common Stock upon conversion of this Debenture as required pursuant to
the terms hereof.

                                       11
<PAGE>
     vi.  Reservation of Shares Issuable Upon Conversion.  The Company covenants
that it will at all times reserve and keep  available out of its  authorized and
unissued shares of Common Stock for the sole purpose of issuance upon conversion
of this Debenture as herein provided,  free from preemptive  rights or any other
actual  contingent  purchase  rights of Persons  other than the Holder  (and the
other holders of the Debentures),  not less than such aggregate number of shares
of the Common Stock as shall  (subject to the terms and  conditions set forth in
the Purchase  Agreement) be issuable  (taking into account the  adjustments  and
restrictions of Section 5) upon the conversion of the then outstanding principal
amount of this Debenture.  The Company covenants that all shares of Common Stock
that shall be so issuable shall, upon issue, be duly authorized, validly issued,
fully paid and nonassessable.

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

     viii.Transfer  Taxes and Expenses.  The issuance of Conversion Shares shall
be made without charge to the Holder hereof for any documentary stamp or similar
taxes  that  may be  payable  in  respect  of the  issue  or  delivery  of  such
certificates,  provided  that,  the Company shall not be required to pay any tax
that may be payable in respect of any  transfer  involved  in the  issuance  and
delivery of any such  certificate  upon  conversion in a name other than that of
the Holder of this  Debenture so converted and the Company shall not be required
to issue or  deliver  such  certificates  unless or until the  Person or Persons
requesting  the  issuance  thereof  shall have paid to the Company the amount of
such tax or shall have  established to the satisfaction of the Company that such
tax has been paid.  The Company  shall pay all Transfer  Agent fees required for
same-day  processing of any Notice of Conversion  and all fees to the Depository
Trust Company (or another established  clearing  corporation  performing similar
functions) required for same-day electronic delivery of the Conversion Shares.

     d)  Holder's  Conversion  Limitations.  The  Company  shall not  effect any
conversion of this  Debenture,  and a Holder shall not have the right to convert
any portion of this  Debenture,  to the extent that after  giving  effect to the
conversion  set  forth  on the  applicable  Notice  of  Conversion,  the  Holder
(together  with the  Holder's  Affiliates,  and any  Persons  acting  as a group
together with the Holder or any of the Holder's  Affiliates) would  beneficially
own in excess of the Beneficial  Ownership  Limitation (as defined  below).  For
purposes  of the  foregoing  sentence,  the  number of  shares  of Common  Stock
beneficially  owned by the Holder and its Affiliates shall include the number of
shares of Common Stock  issuable upon  conversion of this Debenture with respect

                                       12
<PAGE>
to which such  determination  is being  made,  but shall  exclude  the number of
shares of Common Stock which are issuable upon (i)  conversion of the remaining,
unconverted principal amount of this Debenture  beneficially owned by the Holder
or any of its Affiliates  and (ii) exercise or conversion of the  unexercised or
unconverted  portion  of any  other  securities  of  the  Company  subject  to a
limitation  on  conversion  or exercise  analogous to the  limitation  contained
herein  (including,  without  limitation,  any other Debentures or the Warrants)
beneficially  owned by the Holder or any of its Affiliates.  Except as set forth
in the  preceding  sentence,  for  purposes  of this  Section  4(d),  beneficial
ownership  shall be calculated in accordance  with Section 13(d) of the Exchange
Act and the rules and regulations promulgated thereunder. To the extent that the
limitation  contained in this Section 4(d) applies, the determination of whether
this  Debenture is  convertible  (in relation to other  securities  owned by the
Holder  together  with any  Affiliates)  and of which  principal  amount of this
Debenture is convertible shall be in the sole discretion of the Holder,  and the
submission  of a  Notice  of  Conversion  shall  be  deemed  to be the  Holder's
determination  of whether this  Debenture may be converted (in relation to other
securities owned by the Holder together with any Affiliates) and which principal
amount of this Debenture is convertible,  in each case subject to the Beneficial
Ownership  Limitation.  To ensure compliance with this  restriction,  the Holder
will be deemed to  represent  to the  Company  each time it delivers a Notice of
Conversion that such Notice of Conversion has not violated the  restrictions set
forth in this  paragraph  and the Company  shall have no obligation to verify or
confirm the accuracy of such determination.  In addition,  a determination as to
any group status as  contemplated  above shall be determined in accordance  with
Section  13(d) of the  Exchange  Act and the rules and  regulations  promulgated
thereunder.  For purposes of this Section  4(d),  in  determining  the number of
outstanding  shares  of  Common  Stock,  the  Holder  may rely on the  number of
outstanding  shares  of  Common  Stock  as  stated  in the  most  recent  of the
following:  (i) the Company's  most recent  periodic or annual report filed with
the  Commission,  as the case may be, (ii) a more recent public  announcement by
the  Company,  or (iii) a more  recent  written  notice  by the  Company  or the
Company's  transfer  agent  setting  forth the number of shares of Common  Stock
outstanding.  Upon the written or oral  request of a Holder,  the Company  shall
within two Trading Days  confirm  orally and in writing to the Holder the number
of  shares  of  Common  Stock  then  outstanding.  In any  case,  the  number of
outstanding  shares of Common Stock shall be  determined  after giving effect to
the  conversion  or  exercise  of  securities  of the  Company,  including  this
Debenture,  by the  Holder or its  Affiliates  since  the date as of which  such
number of  outstanding  shares of Common  Stock was  reported.  The  "Beneficial
Ownership Limitation" shall be 4.99% of the number of shares of the Common Stock
outstanding  immediately after giving effect to the issuance of shares of Common
Stock issuable upon conversion of this Debenture held by the Holder. The Holder,
upon not less  than 61 days'  prior  notice  to the  Company,  may  increase  or

                                       13
<PAGE>
decrease the Beneficial  Ownership  Limitation  provisions of this Section 4(d),
provided that the Beneficial  Ownership  Limitation in no event exceeds 9.99% of
the number of shares of the Common Stock  outstanding  immediately  after giving
effect  to the  issuance  of  shares of Common  Stock  upon  conversion  of this
Debenture held by the Holder and the Beneficial Ownership Limitation  provisions
of this Section 4(d) shall continue to apply. Any such increase or decrease will
not be  effective  until the 61st day after  such  notice  is  delivered  to the
Company. The Beneficial Ownership Limitation  provisions of this paragraph shall
be construed and  implemented in a manner  otherwise  than in strict  conformity
with the terms of this Section 4(d) to correct  this  paragraph  (or any portion
hereof)  which may be defective  or  inconsistent  with the intended  Beneficial
Ownership  Limitation  contained  herein  or  to  make  changes  or  supplements
necessary  or  desirable  to  properly  give  effect  to  such  limitation.  The
limitations  contained in this  paragraph  shall apply to a successor  holder of
this Debenture.

     Section 5. Certain Adjustments.

     a) Stock Dividends and Stock Splits. If the Company, at any time while this
Debenture  is  outstanding:  (i)  pays a stock  dividend  or  otherwise  makes a
distribution  or  distributions  payable in shares of Common  Stock on shares of
Common Stock or any Common Stock  Equivalents  (which,  for  avoidance of doubt,
shall not  include  any  shares  of Common  Stock  issued  by the  Company  upon
conversion  of, or payment of  interest  on, the  Debentures),  (ii)  subdivides
outstanding  shares of  Common  Stock  into a larger  number  of  shares,  (iii)
combines  (including  by way of a reverse  stock  split)  outstanding  shares of
Common Stock into a smaller  number of shares or (iv) issues,  in the event of a
reclassification  of shares of the Common Stock,  any shares of capital stock of
the Company,  then the  Conversion  Price shall be  multiplied  by a fraction of
which the numerator shall be the number of shares of Common Stock (excluding any
treasury shares of the Company)  outstanding  immediately before such event, and
of  which  the  denominator  shall be the  number  of  shares  of  Common  Stock
outstanding  immediately  after such event. Any adjustment made pursuant to this
Section  shall  become  effective  immediately  after  the  record  date for the
determination of stockholders  entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision, combination or re-classification.

     b)  Subsequent  Equity  Sales.  If, at any time  while  this  Debenture  is
outstanding,  the Company or any Subsidiary, as applicable,  sells or grants any
option  to  purchase  or sells or  grants  any right to  reprice,  or  otherwise
disposes of or issues (or announces any sale, grant or any option to purchase or
other disposition),  any Common Stock or Common Stock Equivalents  entitling any
Person to acquire shares of Common Stock at an effective price per share that is
lower than the then  Conversion  Price (such lower price,  the "Base  Conversion
Price" and such issuances,  collectively,  a "Dilutive Issuance") (if the holder
of the Common  Stock or Common  Stock  Equivalents  so issued shall at any time,
whether by operation of purchase price adjustments,  reset provisions,  floating
conversion,  exercise  or  exchange  prices or  otherwise,  or due to  warrants,
options or rights per share which are issued in connection  with such  issuance,
be entitled to receive  shares of Common Stock at an  effective  price per share
that is lower than the Conversion  Price,  such issuance shall be deemed to have
occurred  for  less  than the  Conversion  Price  on such  date of the  Dilutive
Issuance),  then the  Conversion  Price  shall  be  reduced  to  equal  the Base

                                       14
<PAGE>
Conversion  Price.  Such adjustment  shall be made whenever such Common Stock or
Common  Stock  Equivalents  are  issued.   Notwithstanding  the  foregoing,   no
adjustment  will  be made  under  this  Section  5(b) in  respect  of an  Exempt
Issuance.  If the Company enters into a Variable Rate  Transaction,  despite the
prohibition set forth in the Purchase Agreement,  the Company shall be deemed to
have issued  Common Stock or Common  Stock  Equivalents  at the lowest  possible
conversion  price at which such  securities  may be converted or exercised.  The
Company  shall  notify the Holder in  writing,  no later  than the  Trading  Day
following the issuance of any Common Stock or Common Stock  Equivalents  subject
to this Section 5(b),  indicating  therein the  applicable  issuance  price,  or
applicable reset price, exchange price, conversion price and other pricing terms
(such notice, the "Dilutive  Issuance  Notice").  For purposes of clarification,
whether or not the Company provides a Dilutive  Issuance Notice pursuant to this
Section  5(b),  upon the  occurrence  of any  Dilutive  Issuance,  the Holder is
entitled to receive the then current number of Conversion  Shares based upon the
Base Conversion Price on or after the date of such Dilutive Issuance, regardless
of whether  the Holder  accurately  refers to the Base  Conversion  Price in the
Notice of Conversion.

     c) Subsequent Rights Offerings.  In addition to any adjustments pursuant to
Section  5(a)  above,  if at any time the  Company  grants,  issues or sells any
Common Stock  Equivalents or rights to purchase stock,  warrants,  securities or
other  property pro rata to the record  holders of any class of shares of Common
Stock (the "Purchase Rights"), then the Holder will be entitled to acquire, upon
the terms  applicable to such Purchase  Rights,  the aggregate  Purchase  Rights
which the Holder could have acquired if the Holder had held the number of shares
of Common Stock acquirable upon complete  conversion of this Debenture  (without
regard to any limitations on exercise hereof, including without limitation,  the
Beneficial Ownership  Limitation)  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 shares of Common
Stock are to be determined for the grant,  issue or sale of such Purchase Rights
(provided,  however, to the extent that the Holder's right to participate in any
such  Purchase  Right  would  result  in the  Holder  exceeding  the  Beneficial
Ownership  Limitation,  then the Holder shall not be entitled to  participate in
such Purchase  Right to such extent (or  beneficial  ownership of such shares of
Common  Stock as a  result  of such  Purchase  Right  to such  extent)  and such
Purchase  Right to such extent  shall be held in abeyance  for the Holder  until
such  time,  if ever,  as its  right  thereto  would not  result  in the  Holder
exceeding the Beneficial Ownership Limitation).

     d)  Pro  Rata  Distributions.   During  such  time  as  this  Debenture  is
outstanding,  if the  Company  shall  declare  or make  any  dividend  or  other
distribution  of its  assets (or  rights to  acquire  its  assets) to holders of
shares of Common  Stock,  by way of return of capital or  otherwise  (including,
without  limitation,  any  distribution  of cash,  stock  or  other  securities,
property or options by way of a dividend, spin off, reclassification,  corporate
rearrangement,   scheme  of  arrangement  or  other  similar   transaction)   (a
"Distribution"), at any time after the issuance of this Debenture, then, in each
such case, the Holder shall be entitled to participate in such  Distribution  to

                                       15
<PAGE>
the same extent that the Holder  would have  participated  therein if the Holder
had held the number of shares of Common Stock acquirable upon complete  exercise
of this  Debenture  (without  regard  to any  limitations  on  exercise  hereof,
including without limitation,  the Beneficial Ownership Limitation)  immediately
before the date of which a record is taken for such Distribution, or, if no such
record is taken,  the date as of which the  record  holders  of shares of Common
Stock are to be determined for the participation in such Distribution (provided,
however,  to the  extent  that the  Holder's  right to  participate  in any such
Distribution  would  result in the Holder  exceeding  the  Beneficial  Ownership
Limitation,  then the  Holder  shall  not be  entitled  to  participate  in such
Distribution  to such extent (or in the  beneficial  ownership  of any shares of
Common Stock as a result of such Distribution to such extent) and the portion of
such Distribution  shall be held in abeyance for the benefit of the Holder until
such  time,  if ever,  as its  right  thereto  would not  result  in the  Holder
exceeding the Beneficial Ownership Limitation).

     e)  Fundamental  Transaction.  If,  at any time  while  this  Debenture  is
outstanding,  (i) the Company,  directly or  indirectly,  in one or more related
transactions  effects any merger or  consolidation  of the Company  with or into
another  Person,  (ii) the Company,  directly or  indirectly,  effects any sale,
lease, license, assignment,  transfer, conveyance or other disposition of all or
substantially  all of its  assets  in one or a series of  related  transactions,
(iii) any, direct or indirect,  purchase  offer,  tender offer or exchange offer
(whether  by the  Company or  another  Person) is  completed  pursuant  to which
holders of Common Stock are permitted to sell,  tender or exchange  their shares
for other  securities,  cash or property and has been accepted by the holders of
50% or more of the  outstanding  Common  Stock,  (iv) the  Company,  directly or
indirectly,  in one or more related transactions  effects any  reclassification,
reorganization or  recapitalization  of the Common Stock or any compulsory share
exchange  pursuant to which the Common Stock is  effectively  converted  into or
exchanged for other securities,  cash or property, (v) the Company,  directly or
indirectly,  in one or more related  transactions  consummates  a stock or share
purchase agreement or other business combination (including, without limitation,
a  reorganization,  recapitalization,  spin-off or scheme of  arrangement)  with
another  Person  whereby  such  other  Person  acquires  more  than  50%  of the
outstanding  shares of Common  Stock (not  including  any shares of Common Stock
held by the other Person or other  Persons  making or party to, or associated or
affiliated  with the  other  Persons  making or party  to,  such  stock or share
purchase   agreement  or  other  business   combination)  (each  a  "Fundamental
Transaction"),  then,  upon any  subsequent  conversion of this  Debenture,  the
Holder  shall have the right to receive,  for each  Conversion  Share that would
have been issuable upon such conversion  immediately  prior to the occurrence of
such Fundamental  Transaction  (without regard to any limitation in Section 4(d)
on the  conversion of this  Debenture),  the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving
corporation,  and any additional  consideration (the "Alternate  Consideration")
receivable as a result of such Fundamental Transaction by a holder of the number
of shares of Common Stock for which this  Debenture is  convertible  immediately

                                       16
<PAGE>
prior to such  Fundamental  Transaction  (without  regard to any  limitation  in
Section  4(d) on the  conversion  of this  Debenture).  For purposes of any such
conversion,  the  determination  of the Conversion  Price shall be appropriately
adjusted  to apply  to such  Alternate  Consideration  based  on the  amount  of
Alternate  Consideration issuable in respect of one (1) share of Common Stock in
such  Fundamental  Transaction,  and the Company shall  apportion the Conversion
Price among the Alternate  Consideration in a reasonable  manner  reflecting the
relative  value of any  different  components  of the  Alternate  Consideration.
Notwithstanding  the  foregoing,   the  following  shall  not  be  considered  a
Fundamental  Transaction:  (i) any merger of the Company or any of its direct or
indirect wholly-owned Subsidiaries with or into any of the foregoing Persons, or
any reorganization, recapitalization or reclassification of the Common Stock, in
which holders of the Company's  voting power  immediately  prior to such merger,
reorganization, recapitalization or reclassification continue after such merger,
reorganization,  recapitalization  or  reclassification  to hold publicly traded
securities and, directly or indirectly, the voting power of the surviving entity
or  entities  necessary  to elect a  majority  of the  members  of the  board of
directors (or their  equivalent if other than a  corporation)  of such entity or
entities or (ii) pursuant to a migratory  merger effected solely for the purpose
of changing the  jurisdiction  of  incorporation  of the Company.  If holders of
Common Stock are given any choice as to the  securities,  cash or property to be
received in a Fundamental  Transaction,  then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any conversion of this
Debenture  following such Fundamental  Transaction.  The Company shall cause any
successor  entity in a Fundamental  Transaction  in which the Company is not the
survivor (the "Successor Entity") to assume in writing all of the obligations of
the Company under this Debenture and the other Transaction Documents (as defined
in the Purchase  Agreement)  in accordance  with the  provisions of this Section
5(e)  pursuant  to  written   agreements   in  form  and  substance   reasonably
satisfactory  to the Holder and  approved  by the Holder  (without  unreasonable
delay) prior to such  Fundamental  Transaction  and shall,  at the option of the
holder of this Debenture, deliver to the Holder in exchange for this Debenture a
security of the Successor Entity evidenced by a written instrument substantially
similar in form and  substance  to this  Debenture  which is  convertible  for a
corresponding number of shares of capital stock of such Successor Entity (or its
parent  entity)  equivalent  to  the  shares  of  Common  Stock  acquirable  and
receivable upon conversion of this Debenture  (without regard to any limitations
on the  conversion  of  this  Debenture)  at the  closing  of  such  Fundamental
Transaction,  and with a conversion  price which  applies the  conversion  price
hereunder to such shares of capital  stock (but taking into account the relative
value of the shares of Common Stock pursuant to such Fundamental Transaction and
the value of such  shares of  capital  stock,  such  number of shares of capital
stock and such conversion price being for the purpose of protecting the economic
value  of  this  Debenture   immediately  prior  to  the  consummation  of  such
Fundamental  Transaction),  and  which is  reasonably  satisfactory  in form and
substance  to  the  Holder.   Upon  the  occurrence  of  any  such   Fundamental
Transaction,  the Successor  Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction,  the provisions of
this Debenture and the other  Transaction  Documents  referring to the "Company"
shall refer instead to the Successor  Entity),  and may exercise every right and

                                       17
<PAGE>
power of the  Company  and shall  assume all of the  obligations  of the Company
under this Debenture and the other Transaction Documents with the same effect as
if such Successor Entity had been named as the Company herein.

     f) Adjustment for Failure of Authorized Share Increase. If the Company does
not effect the Authorized Share Increase by April 30, 2015, the Conversion Price
shall be reduced to $0.08  (subject to any other  adjustments  made  pursuant to
Section 5(a)).

     g) Calculations. All calculations under this Section 5 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be. For purposes
of this  Section 5, the number of shares of Common Stock deemed to be issued and
outstanding  as of a given  date  shall be the sum of the  number  of  shares of
Common  Stock  (excluding  any  treasury  shares  of  the  Company)  issued  and
outstanding.

     h) Notice to the Holder.

          i. Adjustment to Conversion  Price.  Whenever the Conversion  Price is
     adjusted  pursuant to any  provision of this  Section 5, the Company  shall
     promptly deliver to each Holder a notice setting forth the Conversion Price
     after such  adjustment  and setting  forth a brief  statement  of the facts
     requiring such adjustment.

          ii.  Notice to Allow  Conversion  by Holder.  If (A) the Company shall
     declare a dividend  (or any other  distribution  in  whatever  form) on the
     Common Stock,  (B) the Company shall  declare a special  nonrecurring  cash
     dividend on or a  redemption  of the Common  Stock,  (C) the Company  shall
     authorize  the  granting  to all  holders of the Common  Stock of rights or
     warrants to subscribe  for or purchase  any shares of capital  stock of any
     class or of any rights, (D) the approval of any stockholders of the Company
     shall be required in  connection  with any  reclassification  of the Common
     Stock,  any  consolidation  or merger to which the Company is a party,  any
     sale or transfer of all or substantially  all of the assets of the Company,
     or any compulsory share exchange whereby the Common Stock is converted into
     other  securities,  cash or property or (E) the Company shall authorize the
     voluntary  or  involuntary  dissolution,  liquidation  or winding up of the
     affairs of the Company,  then, in each case,  the Company shall cause to be
     filed at each office or agency  maintained for the purpose of conversion of
     this  Debenture,  and shall cause to be delivered to the Holder at its last
     address as it shall  appear upon the  Debenture  Register,  at least twenty
     (20)  calendar  days  prior to the  applicable  record  or  effective  date
     hereinafter  specified,  a notice stating (x) the date on which a record is
     to be taken for the  purpose of such  dividend,  distribution,  redemption,
     rights or warrants, or if a record is not to be taken, the date as of which
     the holders of the Common Stock of record to be entitled to such  dividend,
     distributions,  redemption,  rights or warrants are to be determined or (y)
     the date on  which  such  reclassification,  consolidation,  merger,  sale,
     transfer or share  exchange is expected to become  effective or close,  and
     the date as of which it is  expected  that  holders of the Common  Stock of
     record  shall be entitled to exchange  their shares of the Common Stock for
     securities,  cash or other property deliverable upon such reclassification,

                                       18
<PAGE>
     consolidation,  merger, sale, transfer or share exchange, provided that the
     failure to deliver  such  notice or any defect  therein or in the  delivery
     thereof shall not affect the validity of the corporate  action  required to
     be  specified  in such  notice.  To the  extent  that any  notice  provided
     hereunder  constitutes,  or  contains,  material,   non-public  information
     regarding  the  Company  or any  of the  Subsidiaries,  the  Company  shall
     simultaneously  file such notice with the Commission  pursuant to a Current
     Report on Form 8-K.  The Holder  shall  remain  entitled  to  convert  this
     Debenture  during the 20-day  period  commencing on the date of such notice
     through the effective  date of the event  triggering  such notice except as
     may otherwise be expressly set forth herein.

     Section 6. Redemption and Forced Conversion.

     a) Optional Redemption at Election of Company. Subject to the provisions of
this  Section  6(a),  at any time after  Original  Issue  Date,  the Company may
deliver a notice to the Holder (an  "Optional  Redemption  Notice"  and the date
such notice is deemed  delivered  hereunder,  the  "Optional  Redemption  Notice
Date") of its irrevocable election to redeem some or all of the then outstanding
principal  amount of this  Debenture for cash in an amount equal to the Optional
Redemption  Amount on a specified Trading Day which shall be no earlier than the
10th Trading Day following the Optional  Redemption  Notice Date (such date, the
"Optional  Redemption  Date",  such 10 (or  greater)  Trading  Day  period,  the
"Optional  Redemption Period" and such redemption,  the "Optional  Redemption").
The Optional  Redemption  Amount is payable in full on the  Optional  Redemption
Date.  The Company may only effect an Optional  Redemption if each of the Equity
Conditions  shall have been met (unless waived in writing by the Holder) on each
Trading Day during the period commencing on the Optional  Redemption Notice Date
through to the  Optional  Redemption  Date and  through and  including  the date
payment of the Optional  Redemption  Amount is actually  made in full. If any of
the  Equity  Conditions  shall  cease to be  satisfied  at any time  during  the
Optional  Redemption  Period,  then the Holder may elect to nullify the Optional
Redemption Notice by notice to the Company within 3 Trading Days after the first
day on which any such Equity  Condition has not been met (provided that if, by a
provision of the Transaction  Documents,  the Company is obligated to notify the
Holder of the non-existence of an Equity Condition,  such notice period shall be
extended to the third Trading Day after proper notice from the Company) in which
case the  Optional  Redemption  Notice  shall be null and void,  ab initio.  The
Company  covenants  and  agrees  that it will honor all  Notices  of  Conversion
tendered from the time of delivery of the Optional Redemption Notice through the
date  all  amounts  owing  thereon  are due  and  paid in  full.  The  Company's
determination to pay an Optional  Redemption in cash shall be applied ratably to

                                       19
<PAGE>
all of the holders of the then  outstanding  Debentures based on their (or their
predecessor's)   initial  purchases  of  Debentures  pursuant  to  the  Purchase
Agreement.

     b) Monthly  Redemption.  On each Monthly Redemption Date, the Company shall
redeem the Monthly  Redemption  Amount (the "Monthly  Redemption").  The Monthly
Redemption Amount payable on each Monthly Redemption Date shall be paid in cash;
provided, however, as to any Monthly Redemption and upon not less than 5 Trading
Days' prior written notice (the "Monthly Redemption Notice"),  in lieu of a cash
redemption  payment  the Holder  may elect to  receive  all or part of a Monthly
Redemption  Amount in Conversion Shares based on a conversion price equal to the
lesser of (i) the then  Conversion  Price and (ii) 80% of the  average  of the 5
lowest VWAPs for the 20 consecutive  Trading Days ending on the Trading Day that
is  immediately  prior to the  applicable  Monthly  Redemption  Date (subject to
adjustment  for any stock  dividend,  stock split,  stock  combination  or other
similar event affecting the Common Stock during such 20 Trading Day period) (the
price  calculated  during the 20 Trading  Day  period  immediately  prior to the
Monthly Redemption Date, the "Monthly  Conversion Price" and such 20 Trading Day
period, the "Monthly Conversion Period"); provided, that if the reported closing
price on the principal  Trading Market is equal to or less than $0.05  (adjusted
for any stock dividend,  stock split,  stock combination or other similar event)
on the Trading Day immediately  prior to the Monthly  Redemption  Date, then the
Holder must accept  payment in cash if so requested  by the Company.  The Holder
may convert,  pursuant to Section 4(a),  any principal  amount of this Debenture
subject to a Monthly  Redemption  at any time prior to the date that the Monthly
Redemption Amount, plus accrued but unpaid interest,  liquidated damages and any
other  amounts  then  owing  to the  Holder  are due and  paid in  full.  Unless
otherwise  indicated by the Holder in the applicable  Notice of Conversion,  any
principal  amount of this  Debenture  converted  during the  applicable  Monthly
Conversion  Period until the date the Monthly  Redemption Amount is paid in full
shall be first applied to the principal amount subject to the Monthly Redemption
Amount  payable in cash and then to the  Monthly  Redemption  Amount  payable in
Conversion Shares.  Any principal amount of this Debenture  converted during the
applicable  Monthly Conversion Period in excess of the Monthly Redemption Amount
shall be applied against the last principal  amount of this Debenture  scheduled
to be redeemed  hereunder,  in reverse  time order from the Maturity  Date.  The
Company  covenants  and  agrees  that it will honor all  Notices  of  Conversion
tendered up until such amounts are paid in full. The Company's  determination to
pay a  Monthly  Redemption  in cash,  shares of  Common  Stock or a  combination
thereof shall be applied  ratably to all of the holders of the then  outstanding
Debentures  based  on  their  (or  their  predecessor's)  initial  purchases  of
Debentures pursuant to the Purchase Agreement.

     c) Redemption  Procedure.  The payment of cash or issuance of Common Stock,
as applicable,  pursuant to an Optional Redemption or a Monthly Redemption shall
be payable on the Optional  Redemption Date or the Monthly  Redemption  Date, as
applicable.  If any portion of the payment pursuant to an Optional Redemption or
Monthly  Redemption shall not be paid by the Company by the applicable due date,
interest shall accrue thereon at an interest rate equal to the lesser of 18% per

                                       21
<PAGE>
annum or the maximum rate  permitted by applicable law until such amount is paid
in full.  Notwithstanding  anything  herein  contained to the  contrary,  if any
portion of the  Optional  Redemption  Amount or Monthly  Redemption  Amount,  as
applicable,  remains  unpaid after such date,  the Holder may elect,  by written
notice to the Company given at any time thereafter,  to invalidate such Optional
Redemption or Monthly Redemption,  ab initio, and, with respect to the Company's
failure to honor the  Optional  Redemption,  the  Company  shall have no further
right to exercise  such  Optional  Redemption.  Notwithstanding  anything to the
contrary in this Section 6, the Company's determination to redeem in cash or its
elections  under  Section  6(b) shall be applied  ratably  among the  Holders of
Debentures.  The Holder may elect to convert the outstanding principal amount of
the  Debenture  pursuant  to  Section 4 prior to actual  payment in cash for any
redemption under this Section 6 by the delivery of a Notice of Conversion to the
Company.

     d) Forced Conversion.  Notwithstanding  anything herein to the contrary, if
after the first Monthly  Redemption Date, the closing bid price on the principal
Trading Market for each of any 30 consecutive  Trading Days,  which period shall
have  commenced  only after the first Monthly  Redemption  Date (such period the
"Threshold  Period"),  exceeds  $0.30  (subject  to  adjustment  for reverse and
forward stock splits,  stock  dividends,  stock  combinations  and other similar
transactions of the Common Stock that occur after the Original Issue Date),  the
Company may,  within 1 Trading Day after the end of any such  Threshold  Period,
deliver a written  notice to the Holder (a "Forced  Conversion  Notice"  and the
date such notice is  delivered  to the Holder,  the  "Forced  Conversion  Notice
Date")  to cause  the  Holder  to  convert  all or part of the then  outstanding
principal  amount  of  this  Debenture  plus,  if so  specified  in  the  Forced
Conversion  Notice,  accrued but unpaid interest,  liquidated  damages and other
amounts  owing to the Holder  under this  Debenture,  it being  agreed  that the
"Conversion  Date"  for  purposes  of  Section 4 shall be deemed to occur on the
third  Trading  Day  following  the Forced  Conversion  Notice  Date (such third
Trading Day, the "Forced Conversion Date"). The Company may not deliver a Forced
Conversion  Notice,  and any Forced  Conversion  Notice delivered by the Company
shall not be  effective,  unless all of the Equity  Conditions  are met  (unless
waived in  writing by the  Holder)  on each  Trading  Day  occurring  during the
applicable  Threshold  Period  through  and  including  the later of the  Forced
Conversion  Date and the  Trading  Day  after the date  such  Conversion  Shares
pursuant to such conversion are delivered to the Holder.  Any Forced  Conversion
shall be applied  ratably to all Holders  based on their  initial  purchases  of
Debentures  pursuant to the  Purchase  Agreement,  provided  that any  voluntary
conversions  by a  Holder  shall  be  applied  against  the  Holder's  pro  rata
allocation, thereby decreasing the aggregate amount forcibly converted hereunder
if only a portion of this  Debenture  is  forcibly  converted.  For  purposes of
clarification,  a Forced Conversion shall be subject to all of the provisions of
Section 4, including,  without  limitation,  the provision  requiring payment of
liquidated damages and limitations on conversions.

                                       22
<PAGE>
     Section 7. Negative Covenants.  Except for Exempt Issuances, as long as any
portion of this Debenture  remains  outstanding,  unless the holders of at least
67% in principal amount of the then outstanding  Debentures shall have otherwise
given prior written consent,  the Company shall not, and shall not permit any of
the Subsidiaries to, directly or indirectly:

     a) other than Permitted  Indebtedness,  enter into, create,  incur, assume,
guarantee or suffer to exist any  indebtedness  for borrowed  money of any kind,
including,  but not limited to, a  guarantee,  on or with  respect to any of its
property or assets now owned or hereafter  acquired or any  interest  therein or
any income or profits therefrom;

     b) other than Permitted Liens, enter into, create,  incur, assume or suffer
to exist any Liens of any kind,  on or with  respect to any of its  property  or
assets now owned or hereafter  acquired or any interest therein or any income or
profits therefrom;

     c)  amend  its  charter  documents,   including,  without  limitation,  its
certificate  of  incorporation  and bylaws,  in any manner that  materially  and
adversely affects any rights of the Holder, except for an increase in the number
of authorized shares of Common Stock of the Company;

     d) repay,  repurchase or offer to repay,  repurchase  or otherwise  acquire
more than a de  minimis  number of shares of its  Common  Stock or Common  Stock
Equivalents  other than as to (i) the  Conversion  Shares or  Warrant  Shares as
permitted or required under the  Transaction  Documents and (ii)  repurchases of
Common Stock or Common Stock Equivalents of departing  officers and directors of
the Company,  provided  that such  repurchases  shall not exceed an aggregate of
$100,000 for all officers and directors during the term of this Debenture;

     e) repay, repurchase or offer to repay, repurchase or otherwise acquire any
Indebtedness,  other  than the  Debentures  if on a pro-rata  basis,  other than
regularly  scheduled principal and interest payments as such terms are in effect
as of the  Original  Issue Date,  or trade  payables in the  ordinary  course of
business,  provided that such payments  shall not be permitted if, at such time,
or after giving effect to such payment, any Event of Default exist or occur;

     f) pay cash  dividends or  distributions  on any equity  securities  of the
Company;

     g) enter into any transaction with any Affiliate of the Company which would
be required to be disclosed  in any public  filing with the  Commission,  unless
such  transaction is made on an arm's-length  basis and expressly  approved by a
majority of the  disinterested  directors  of the  Company  (even if less than a
quorum otherwise required for board approval); or

     h) enter into any agreement with respect to any of the foregoing.

                                       23
<PAGE>
     Section 8. Events of Default.

     a) "Event of Default"  means,  wherever  used herein,  any of the following
events  (whatever  the  reason for such event and  whether  such event  shall be
voluntary  or  involuntary  or effected by  operation  of law or pursuant to any
judgment,  decree or order of any court, or any order, rule or regulation of any
administrative or governmental body):

          i. any  default  in the  payment  of (A) the  principal  amount of any
     Debenture or (B) interest,  liquidated damages and other amounts owing to a
     Holder on any Debenture,  as and when the same shall become due and payable
     (whether on a Conversion  Date or the Maturity Date or by  acceleration  or
     otherwise)  which  default,  solely in the case of an  interest  payment or
     other default under clause (B) above, is not cured within 3 Trading Days;

          ii. the Company shall fail to observe or perform any other covenant or
     agreement  contained  in the  Debentures  which  failure is not  cured,  if
     possible to cure,  within the earlier to occur of (A) 5 Trading  Days after
     notice of such  failure  sent by the  Holder or by any other  Holder to the
     Company and (B) 10 Trading Days after the Company has become or should have
     become aware of such failure;

          iii.  a  default  or event of  default  (subject  to any grace or cure
     period provided in the applicable agreement,  document or instrument) shall
     occur under (A) any of the Transaction  Documents or (B) any other material
     agreement,  lease,  document  or  instrument  to which the  Company  or any
     Subsidiary is obligated (and not covered by clause (vi) below);

          iv.  any  representation  or  warranty  made  by the  Company  in this
     Debenture,  any other Transaction Documents, any written statement pursuant
     hereto or thereto or any other report,  financial  statement or certificate
     made or  delivered  to the  Holder or any other  Holder  shall be untrue or
     incorrect in any material respect as of the date when made or deemed made;

          v. the Company or any Significant  Subsidiary (as such term is defined
     in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event;

          vi.  the  Company  or  any  Subsidiary  shall  default  on  any of its
     obligations  under  any  mortgage,  credit  agreement  or  other  facility,
     indenture  agreement,  factoring  agreement or other instrument under which
     there may be issued,  or by which  there may be secured or  evidenced,  any
     indebtedness for borrowed money or money due under any long term leasing or
     factoring   arrangement  that  (a)  involves  an  obligation  greater  than
     $150,000,  whether  such  indebtedness  now  exists or shall  hereafter  be
     created,  and (b) results in such  indebtedness  becoming or being declared

                                       24
<PAGE>
     due and payable  prior to the date on which it would  otherwise  become due
     and  payable  (unless  waived in  writing  by the  applicable  creditor  or
     lender);

          vii.  the Common  Stock shall not be eligible for listing or quotation
     for trading on a Trading Market and shall not be eligible to resume listing
     or quotation for trading thereon within five Trading Days;

          viii.  the  Company  shall  be  a  party  to  any  Change  of  Control
     Transaction or Fundamental Transaction or shall agree to sell or dispose of
     all or in excess of 33% of its  assets  in one  transaction  or a series of
     related transactions (whether or not such sale would constitute a Change of
     Control  Transaction);  provided,  however,  such transactions shall not be
     considered an Event of Default (i) in the event that the  Surviving  Entity
     in such transaction is listed for trading on a national securities exchange
     and for  each  Trading  Day in a  period  of 60  consecutive  Trading  Days
     immediately  prior to such  transaction,  the daily trading  volume for the
     Common  Stock  on the  principal  Trading  Market  exceeds  20% of the then
     outstanding  principal  amount  of  this  Debenture  on the  date  of  such
     transaction  or (ii) in the event that the  Holder  elects to be prepaid at
     the  Optional  Redemption  Amount  if such  transaction  is a  "Rule  13e-3
     transaction" as defined in Rule 13e-3 under the Exchange Act;

          ix.  the  Company  does  not  meet  the  current  public   information
     requirements  under Rule  144(c) on or after the first  Monthly  Redemption
     Date, provided, however, that if (A) the Company files a Form 12b-25 within
     the applicable  deadline imposed by Rule 12b-25 (or any successor  thereto)
     with respect to any  Quarterly  Report on Form 10-Q or any Annual Report on
     Form 10-K and (ii) the Company  subsequently files such Quarterly Report on
     Form 10-Q or Annual Report on Form 10-K, as applicable, with the SEC within
     the applicable period provided in Rule 12b-25, then the late filing of such
     report shall not be considered an Event of Default hereunder;

          x. the Company shall fail for any reason to deliver  certificates to a
     Holder prior to the fifth  Trading Day after a Conversion  Date pursuant to
     Section 4(c) or any Forced  Conversion Date pursuant to Section 6(d) or the
     Company shall provide at any time notice to the Holder, including by way of
     public  announcement,  of the Company's intention to not honor requests for
     conversions of any Debentures in accordance with the terms hereof;

          xi. the  electronic  transfer by the Company of shares of Common Stock
     through  the  Depository  Trust  Company  or another  established  clearing
     corporation  is no longer  available  or is subject  to a "chill"  and such
     unavailability or chill is not cured within five Trading Days; or

                                       25
<PAGE>
          xii. any monetary  judgment,  writ or similar  final  process shall be
     entered  or filed  against  the  Company,  any  subsidiary  or any of their
     respective  property  or other  assets  for more  than  $200,000,  and such
     judgment, writ or similar final process shall remain unvacated, unbonded or
     unstayed  for a period of 45  calendar  days  provided,  however,  that any
     judgment which is covered by insurance or an indemnity from a credit worthy
     party shall not be included in  calculating  the $200,000  amount set forth
     above so long as the Company  provides the Holder a written  statement from
     such  insurer or  indemnity  provider  (which  written  statement  shall be
     reasonably  satisfactory to the Holder) to the effect that such judgment is
     covered by  insurance  or an  indemnity  and the Company  will  receive the
     proceeds of such  insurance  or  indemnity  within  thirty (30) days of the
     issuance of such judgment.

     b) Remedies Upon Event of Default.  If any Event of Default occurs, (A) the
Conversion  Price  shall be  adjusted  to 52% of the lowest  VWAP  during the 30
Trading Days prior to the Holder's Notice of Conversion, and (B) the outstanding
principal amount of this Debenture, plus accrued but unpaid interest, liquidated
damages  and  other  amounts  owing  in  respect  thereof  through  the  date of
acceleration,  shall  become,  at the  Holder's  election,  immediately  due and
payable in cash at the  Mandatory  Default  Amount.  Commencing 5 days after the
occurrence of any Event of Default that results in the eventual  acceleration of
this Debenture,  the interest rate on this Debenture shall accrue at an interest
rate equal to the lesser of 2% per month or the  maximum  rate  permitted  under
applicable law. Upon the payment in full of the Mandatory  Default  Amount,  the
Holder shall promptly surrender this Debenture to or as directed by the Company.
In  connection  with such  acceleration  described  herein,  the Holder need not
provide,  and the Company hereby waives,  any  presentment,  demand,  protest or
other notice of any kind, and the Holder may immediately and without  expiration
of any grace period enforce any and all of its rights and remedies hereunder and
all other remedies  available to it under applicable law. Such  acceleration may
be rescinded  and annulled by Holder at any time prior to payment  hereunder and
the Holder shall have all rights as a holder of the  Debenture  until such time,
if any, as the Holder  receives  full payment  pursuant to this Section 8(b). No
such  rescission or annulment  shall affect any  subsequent  Event of Default or
impair any right consequent thereon.

     Section 9. Miscellaneous.

     a) Notices. Any and all notices or other communications or deliveries to be
provided by the Holder hereunder,  including,  without limitation, any Notice of
Conversion, shall be in writing and delivered personally, by facsimile, by email
attachment,  or sent  by a  nationally  recognized  overnight  courier  service,
addressed  to the  Company,  at the  address  set  forth  above,  or such  other
facsimile number,  email address, or address as the Company may specify for such
purposes by notice to the Holder delivered in accordance with this Section 9(a).
Any and all notices or other  communications or deliveries to be provided by the
Company hereunder shall be in writing and delivered personally, by facsimile, by

                                       26
<PAGE>
email attachment,  or sent by a nationally  recognized overnight courier service
addressed to each Holder at the facsimile  number or email address or address of
the Holder appearing on the books of the Company, or if no such facsimile number
or email  attachment  or  address  appears on the books of the  Company,  at the
principal  place of  business  of such  Holder,  as set  forth  in the  Purchase
Agreement.  Any notice or other  communication or deliveries  hereunder shall be
deemed given and effective on the earliest of (i) the date of  transmission,  if
such notice or  communication is delivered via facsimile at the facsimile number
or email  attachment  to the  email  address  set forth on the  signature  pages
attached  hereto prior to 5:30 p.m.  (New York City time) on any date,  (ii) the
next Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile at the  facsimile  number or email  attachment to the
email address set forth on the signature  pages attached hereto on a day that is
not a Trading  Day or later than 5:30 p.m.  (New York City time) on any  Trading
Day, (iii) the second Trading Day following the date of mailing, if sent by U.S.
nationally  recognized  overnight courier service or (iv) upon actual receipt by
the party to whom such notice is required to be given.

     b) Absolute  Obligation.  Except as expressly provided herein, no provision
of this Debenture shall alter or impair the obligation of the Company,  which is
absolute and  unconditional,  to pay the  principal of,  liquidated  damages and
accrued interest, as applicable, on this Debenture at the time, place, and rate,
and in the coin or currency, herein prescribed.  This Debenture is a direct debt
obligation  of the  Company.  This  Debenture  ranks  pari  passu with all other
Debentures now or hereafter issued under the terms set forth12he other party for
its attorneys fees and other costs and expenses  incurred in the  investigation,
preparation and prosecution of such action or proceeding.

     c)  Waiver.  Any  waiver by the  Company  or the  Holder of a breach of any
provision of this Debenture  shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of
this  Debenture.  The failure of the Company or the Holder to insist upon strict
adherence to any term of this  Debenture on one or more  occasions  shall not be
considered a waiver or deprive that party of the right thereafter to insist upon
strict  adherence to that term or any other term of this  Debenture on any other
occasion. Any waiver by the Company or the Holder must be in writing.

     d) Severability.  If any provision of this Debenture is invalid, illegal or
unenforceable,   the  balance  of  to  any  Person  or  circumstance,  it  shall
nevertheless  remain  applicable to all other Persons and  circumstances.  If it
shall be found that any interest or other amount  deemed  interest due hereunder
violates the applicable law governing usury, the applicable rate of interest due
hereunder shall  automatically  be lowered to equal the maximum rate of interest
permitted under applicable law. The Company covenants (to the extent that it may
lawfully  do so) that it shall not at any time  insist  upon,  plead,  or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension

                                       27
<PAGE>
or usury law or other law which  would  prohibit  or forgive  the  Company  from
paying all or any portion of the  principal of or interest on this  Debenture as
contemplated herein, wherever enacted, now or at any time hereafter in force, or
which may affect the covenants or the  performance  of this  Debenture,  and the
Company  (to the  extent it may  lawfully  do so)  hereby  expressly  waives all
benefits or advantage of any such law, and covenants that it will not, by resort
to any such law,  hinder,  delay or impede  the  execution  of any power  herein
granted to the Holder, but will suffer and permit the execution of every such as
though no such law has been enacted.

     e) Remedies, Characterizations,  Other Obligations, Breaches and Injunctive
Relief.  The remedies  provided in this  Debenture  shall be  cumulative  and in
addition to all other  remedies  available  under this  Debenture and any of the
other Transaction  Documents at law or in equity (including a decree of specific
performance and/or other injunctive relief),  and nothing herein shall limit the
Holder's right to pursue actual and consequential damages for any failure by the
Company to comply with the terms of this Debenture. The Company covenants to the
Holder that there shall be no characterization  concerning this instrument other
than as expressly provided herein. Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not,  except as  expressly
provided  herein,  be subject to any other  obligation  of the  Company  (or the
performance  thereof).  The  Company  acknowledges  that a  breach  by it of its
obligations  hereunder  will cause  irreparable  harm to the Holder and that the
remedy at law for any such  breach  may be  inadequate.  The  Company  therefore
agrees that,  in the event of any such breach or threatened  breach,  the Holder
shall be entitled, in addition to all other available remedies, to an injunction
restraining any such breach or any such threatened breach, without the necessity
of showing  economic loss and without any bond or other security being required.
The Company shall provide all information and  documentation  to the Holder that
is  reasonably  requested  by the Holder to enable  the  Holder to  confirm  the
Company's compliance with the terms and conditions of this Debenture.

     f) Next Business Day.  Whenever any payment or other  obligation  hereunder
shall be due on a day other than a Business  Day,  such payment shall be made on
the next succeeding Business Day.

     i)  Cancellation.  After all  principal,  interest and other amounts at any
time owed on this Debenture have been  indefeasibly paid in full, this Debenture
shall automatically be deemed cancelled, shall be surrendered to the Company for
cancellation and shall not be reissued.

     j) Voting  Rights.  The Holder shall have no voting rights as the holder of
this  Debenture,  except as  required  by law  (including,  without  limitation,
Chapter 78 of the Nevada Revised Statutes).

                                       28
<PAGE>
     g) Headings. The headings contained herein are for convenience only, do not
constitute a part of this  Debenture  and shall not be deemed to limit or affect
any of the provisions hereof.

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

                            (SIGNATURE PAGES FOLLOW)

                                       29
<PAGE>
     IN WITNESS  WHEREOF,  the  Company  has caused  this  Debenture  to be duly
executed by a duly authorized officer as of the date first above indicated.

                          STEVIA CORP.
                          By:__________________________________________
                             Name: George Blankenbaker
                             Title: President
                         Facsimile No. for delivery of Notices: _______________

                                       30

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