<PAGE>   1
                                                                    EXHIBIT 10.5


THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL)
REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAWS.


                               WARRANT AGREEMENT

             To Purchase Shares of the Series C Preferred Stock of

                          ARGONAUT TECHNOLOGIES, INC.

                Dated as of July 7, 1998 (the "Effective Date")

               in connection with the Loan and Security Agreement

     WHEREAS, Argonaut Technologies, Inc., a Delaware corporation (the
"Company") has entered into a Loan and Security Agreement dated as of July 7,
1998, (the "Loan Agreement") with Comdisco, Inc., a Delaware corporation (the
"Warrantholder"); and

     WHEREAS, the Company desires to grant to Warrantholder, in consideration
for such Loan Agreement, the right to purchase shares of its Series C Preferred
Stock;

     NOW, THEREFORE, in consideration of the Warrantholder executing and
delivering such Loan Agreement and in consideration of mutual covenants and
agreements contained herein, the Company and Warrantholder agree as follows:

1.   GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK.

     The Company hereby grants to Warrantholder, and the Warrantholder is
entitled, upon the terms and subject to the conditions hereinafter set forth, to
subscribe for and purchase, from the Company, 20,000 fully paid and
non-assessable shares of the Company's Series C Preferred Stock ("Preferred
Stock") at a purchase price of $6.00 per share (the "Exercise Price") which is
equivalent to twelve percent (12%) of $1,000,000 divided by the Exercise Price.
Notwithstanding the foregoing, in the event the Company (a) completes (i) an IPO
which results in net cash proceeds to the Company equivalent to, or greater
than, $20,000,000, on or before April 15, 2000; or (ii) an acquisition of the
Company yielding an acquisition price equivalent to or greater than
$100,000,000, and in the case of (i) or (ii) the Company prepays the outstanding
balance of principal and interest under the Loan Agreement within thirty (30)
days of such event; or (b) prepays the outstanding balance of principal and
interest under the Loan Agreement on or before April 15, 2000 in accordance with
the terms of Section 2.6 of the Loan Agreement, then the number of shares
available hereunder shall be adjusted retroactively to equate to nine percent
(9%) of $1,000,000 divided by the Exercise Price. The number and purchase price
of such shares are subject to further adjustment as provided in Section B
hereof.

2.   TERM OF THE WARRANT AGREEMENT.

     Except as otherwise provided for herein, the term of this Warrant Agreement
and the right to purchase Preferred Stock as granted herein shall commence on
the Effective Date and shall be exercisable for a period of (i) seven (7) years
or (ii) three (3) years from the effective date of the Company's initial public
offering ("IPO"), whichever is earlier.



                                      -1-

<PAGE>   2
3.   EXERCISE OF THE PURCHASE RIGHTS.

     The purchase rights set forth in this Warrant Agreement are exercisable by
the Warrantholder, in whole or in part, at any time, or from time to time,
prior to the expiration of the term set forth in Section 2 above, by tendering
to the Company at its principal office a notice of exercise in the form
attached hereto as Exhibit 1 (the "Notice of Exercise"), duly completed and
executed, along with this Warrant Agreement. Promptly upon receipt of the
Notice of Exercise, this Warrant Agreement and the payment of the purchase
price in accordance with the terms set forth below, the Company shall issue to
the Warrantholder a certificate for the number of shares of Preferred Stock
purchased.

     The Exercise Price may be paid at the Warrantholder's election either (i)
by cash or check, or (ii) by surrender of the right to purchase such number of
shares equal in value (as determined below) to the aggregate exercise price of
the number of shares to be purchased by the Warrantholder ("Net Issuance"). If
the Warrantholder elects the Net Issuance method, the Company will issue
Preferred Stock in accordance with the following formula:

                    X = Y(A-B)
                        ------
                          A

     Where X =      the number of shares of Preferred Stock to be issued to the
                    Warrantholder.

                    Y =  the number of shares of Preferred Stock requested to be
                         exercised under this Warrant Agreement.

                    A =  the fair market value of one (1) share of Preferred
                         Stock.

                    B =  the Exercise Price.

     For purposes of the above calculation, current fair market value of
Preferred Stock shall mean with respect to each share of Preferred Stock:

          (i)  if the exercise is in connection with an initial public offering
     of the Company's Common Stock, and if the Company's Registration Statement
     relating to such public offering has been declared effective by the SEC,
     then the fair market value per share shall be the product of (x) the
     initial "Price to Public" specified in the final prospectus with respect to
     the offering and (y) the number of shares of Common Stock into which each
     share of Preferred Stock is convertible at the time of such exercise;

          (ii)  if this Warrant is exercised after, and not in connection with
     the Company's initial public offering, and:

               (a)  if the Company's Common Stock is traded on a securities
          exchange, the fair market value shall be deemed to be the product of
          (x) the average of the closing prices over a twenty-one (21) day
          period ending three days before the day the current fair market value
          of the securities is being determined and (y) the number of shares of
          Common Stock into which each share of Preferred Stock is convertible
          at the time of such exercise; or

               (b)  If the Company's Common Stock is actively traded
          over-the-counter, the fair market value shall be deemed to be the
          product of (x) the average of the closing bid and asked prices quoted
          on the Nasdaq National Market System (or similar system) over the
          twenty-one (21) day period ending three days before the day the
          current fair market value of the securities is being determined and
          (y) the number of shares of Common Stock into which each share of
          Preferred Stock is convertible at the time of such exercise.

        (iii)  if at any time the Common Stock is not listed on any securities
     exchange or quoted in the Nasdaq National Market System or the
     over-the-counter market, the current fair market value of Preferred Stock
     shall be the product of (x) the highest price per share which the Company
     could obtain from a willing buyer (not a current employee or director) for
     shares of Common Stock sold by the Company, from authorized but unissued
     shares, as determined in good faith by its Board of Directors and (y) the
     number os shares of Common Stock into which each share of Preferred Stock
     is convertible at the time of such



                                      -2-
<PAGE>   3
     exercise, unless the exercise is in connection with a merger, acquisition
     or other consolidation of the Company pursuant to which the Company is not
     the surviving party, in which case the fair market value of Preferred
     Stock shall be deemed to be the value received by the holders of the
     Company's Preferred Stock on a common equivalent basis pursuant to such
     merger or acquisition.

     Upon partial exercise by either cash or Net Issuance, the Company shall
promptly issue an amended Warrant Agreement representing the remaining number of
shares purchasable hereunder. All other terms and conditions of such amended
Warrant Agreement shall be identical to those contained herein, including, but
not limited to the Effective Date hereof.

4.   RESERVATION OF SHARES.

     (a)  Authorization and Reservation of Shares. During the term of this
Warrant Agreement, the Company will at all times have authorized and reserved a
sufficient number of shares of its Preferred Stock to provided for the exercise
of the rights to purchase Preferred Stock as provided for herein.

     (b)  Registration or Listing. If any shares of Preferred Stock required to
be reserved for purposes of the exercise of this Warrant Agreement hereunder
require registration with or approval of any governmental authority under any
Federal or State law (other than any registration under the Securities Act of
1933, as amended ("1933 Act"), as then in effect, or any similar Federal statute
then enforced, or any state securities law, required by reason of any transfer
involved in such conversion), or listing on any domestic securities exchange,
before such shares may be issued upon conversion, the Company will, at its
expense and as expeditiously as possible, use its best efforts to cause such
shares to be duly registered, listed or approved for listing on such domestic
securities exchange, as the case may be.

5.   NO FRACTIONAL SHARES OR SCRIP.

     No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of the Warrantholder's rights to purchase Preferred
Stock, but in lieu of such fractional shares the Company shall make a cash
payment therefor upon the basis of the Exercise Price then in effect.

6.   NO RIGHTS AS SHAREHOLDER.

     This Warrant Agreement does not entitle the Warrantholder to any voting
rights or other rights as a shareholder of the Company prior to the exercise of
the Warrantholder's rights to purchase Preferred Stock as provided herein.

7.   WARRANTHOLDER REGISTRY.

     The Company shall maintain a registry showing the name and address of the
registered holder of this Warrant Agreement.

8.   ADJUSTMENT RIGHTS.

     The purchase price per share and the number of shares of Preferred Stock
purchasable hereunder are subject to adjustment, as follows:

     (a)  Merger and Sale of Assets. If at any time there shall be a capital
reorganization of the shares of the Company's stock (other than a combination,
reclassification, exchange or subdivision of shares otherwise provided for
herein), or a merger or consolidation of the Company with or into another
corporation when the Company is not the surviving corporation, or the sale of
all or substantially all of the Company's properties and assets to any other
person (hereinafter referred to as a "Merger Event"), then, as a part of such
Merger Event, lawful provision shall be made so that the Warrantholder shall
thereafter be entitled to receive, upon exercise of its rights to purchase
Preferred Stock, the number of shares of Preferred Stock or other securities of
the successor corporation resulting from such Merger Event, to which a holder
of the Preferred Stock deliverable upon exercise of the right to purchase
Preferred stock hereunder would have been entitled in such Merger Event if the
right to purchase such Preferred Stock hereunder had been exercised immediately
prior to the Merger Event. In any such case, appropriate adjustment (as
determined in good faith by the Company's Board of Directors) shall be made in
the application of the provision of this Warrant Agreement with respect to the
rights and interest of the Warrantholder after the Merger Event to the end that
the provisions of this Warrant Agreement (including adjustments of the


                                      -3-

<PAGE>   4
Exercise Price and number of shares of Preferred Stock purchasable) shall be
applicable to the greatest extent reasonably possible.

     (b)  Reclassification of Shares. If the Company at any time shall, by
combination, reclassification, exchange or subdivision of securities or
otherwise, change any of the securities as to which purchase rights under this
Warrant Agreement exist into the same or a different number of securities of
any other class or classes, this Warrant Agreement shall thereafter represent
the right to acquire such number and kind of securities as would have been
issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant Agreement immediately prior
to such combination, reclassification, exchange, subdivision or other change.

     (c)  Subdivision or Combination of Shares. If the Company at any time
shall combine or subdivide its Preferred Stock, the Exercise Price shall be
proportionately decreased in the case of a subdivision, or proportionately
increased in the case of a combination.

     (d)  Antidilution Rights. The Preferred Stock purchasable hereunder shall
have the benefit of the same antidilution rights applicable to such Preferred
Stock as designated in the Company's Certificate of Incorporation, as such may
be amended from time to time, and the Company shall provide Warrantholder with
all notices and information at the times and to the extent it is required to do
so to the holders of such Preferred Stock.

     (e)  Notice of Adjustments. If: (i) the Company shall declare any dividend
or distribution upon its stock, whether in cash, property, stock or other
securities; (ii) the Company shall offer for subscription prorata to the
holders of any class of its Preferred or other convertible stock any additional
shares of stock of any class or other rights; (iii) there shall be any Merger
Event; (iv) there shall be any voluntary dissolution, liquidation or winding up
of the Company; then, in connection with each such event, the Company shall
send to the Warrantholder: (A) at least twenty (20) days' prior written notice
of the date on which the books of the Company shall close or a record shall be
taken for such dividend, distribution, subscription rights (specifying the date
on which the holders of Preferred Stock shall be entitled thereto) or for
determining rights to vote in respect of such Merger Event, dissolution,
liquidation or winding up; and (B) in the case of any such Merger Event,
dissolution, liquidation or winding up, at least twenty (20) days' prior
written notice of the date when the same shall take place (and specifying the
date on which the holders of Preferred Stock shall be entitled to exchange
their Preferred Stock for securities or other property deliverable upon such
Merger Event, dissolution, liquidation or winding up).

     Each such written notice shall set forth, in reasonable detail, (i) the
event requiring the adjustment, (ii) the amount of the adjustment, (iii) the
method by which such adjustment was calculated, (iv) the Exercise Price, and
(v) the number of shares subject to purchase hereunder after giving effect to
such adjustment, and shall be given by first class mail, postage prepaid,
addressed to the Warrantholder, at the address as shown on the books of the
Company.

     (f)  Timely Notice. Failure to timely provide such notice required by
subsection (e) above shall entitle Warrantholder to retain the benefit of the
applicable notice period notwithstanding anything to the contrary contained in
any insufficient notice received by Warrantholder.

9.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

     (a)  Reservation of Preferred Stock. The Preferred Stock issuable upon
exercise of the Warrantholder's rights has been duly and validly reserved and,
when issued in accordance with the provisions of this Warrant Agreement, will
be validly issued, fully paid and non-assessable, and will be free of any
taxes, liens, charges or encumbrances of any nature whatsoever; provided,
however, that the Preferred Stock issuable pursuant to this Warrant Agreement
may be subject to restrictions on transfer under state and/or Federal
securities laws. The Company has made available to the Warrantholder true,
correct and complete copies of its Certificate of Incorporation (the "Charter")
and Bylaws, as amended. The issuance of certificates for shares of Preferred
Stock upon exercise of the Warrant Agreement shall be made without charge to
the Warrantholder for any issuance tax in respect thereof, or other cost
incurred by the Company in connection with such exercise and the related
issuance of shares of Preferred Stock; provided that the Company shall not be
required to pay any tax which may be payable in respect of any transfer
involved and the issuance and delivery of any certificate in a name other than
that of the Warrantholder.

     (b)  Due Authority. The execution and delivery by the Company of this
Warrant Agreement and the performance of all obligations of the Company
hereunder, including the issuance to Warrantholder of the right to

                                      -4-




<PAGE>   5
acquire the shares of Preferred Stock set forth in Section 1, have been duly
authorized by all necessary corporate action on the part of the Company, and the
Loan Agreement and this Warrant Agreement are not inconsistent with the
Company's Charter or Bylaws, do not contravene any law or governmental rule,
regulation or order applicable to it, do not and will not contravene any
provision of, or constitute a default under, any indenture, mortgage, contract
or other instrument to which it is a party or by which it is bound, and the Loan
Agreement and this Warrant Agreement constitute legal, valid and binding
agreements of the Company, enforceable in accordance with their respective terms
subject only to bankruptcy, insolvency or other similar laws affecting the
enforceability of the rights of creditors generally and the general principles
of equity.

     (c)  Consents and Approvals. No consent or approval of, giving of notice
to, registration with, or taking of any other action in respect of any state,
Federal or other governmental authority or agency is required with respect to
the execution, delivery and performance by the Company of its obligations under
this Warrant Agreement, except for the filing of notices pursuant to Regulation
D under the 1933 Act and any filing required by applicable state securities law,
which filings will be effective by the time required thereby.

     (d)  Issued Securities. All issued and outstanding shares of Common Stock,
Preferred Stock or any other securities of the Company have been duly authorized
and validly issued and are fully paid and nonassessable. All outstanding shares
of Common Stock, Preferred Stock and any other securities were issued in full
compliance with all Federal and state securities laws. In addition:

          (i)  The authorized capital stock of the Company consists of
26,800,000 shares of Common Stock and 20,800,000 shares of Preferred Stock, of
which 5,000,000 are designated as Series A Preferred Stock, 5,000,000 shares are
designated Series A-1 Preferred Stock, 3,000,000 shares are designated Series B
Preferred Stock, 3,000,000 shares are designated Series B-1 Preferred Stock,
1,600,000 shares are designated Series C Preferred Stock, and 1,600,000 shares
are designated Series C-1 Preferred Stock. The issued and outstanding shares of
the Company consists of 2,050,322 shares of Common Stock, 4,627,500 shares of
Series A Preferred Stock, no shares of Series A-1 Preferred Stock, 2,923,073
shares of Series B Preferred Stock, no shares of Series B-1 Preferred Stock,
1,180,000 shares of Series C Preferred Stock and no shares of Series C-1
Preferred Stock. The Series A Preferred, Series A-1 Preferred, Series B
Preferred, Series B-1 Preferred, Series C Preferred, and Series C-1 Preferred
shall have the rights, preferences, privileges and restrictions set forth in the
Charter.

          (ii) The Company has reserved 2,435,308 shares of its Common Stock for
issuance to officers, directors, employees, sales representatives and
consultants of the Company pursuant to the Company's 1995 Incentive Stock Plan.
There are stock options outstanding for the purchase of 1,627,560 shares of
Common Stock. There are also warrants outstanding for the purchase of 55,000
shares of Common Stock and 34,999 of Series C Preferred Stock. Except as
referenced herein, there are no options, warrants, conversion privileges or
other rights presently outstanding to purchase or otherwise acquire any
authorized but unissued shares of the capital stock or other securities of the
Company.

     (e)  Insurance. The Company has in full force and effect insurance
policies, with extended coverage, insuring the Company and its property and
business against such losses and risks, and in such amounts, as are customary
for corporations engaged in a similar business and similarly situated and as
otherwise may be required pursuant to the terms of any other contract or
agreement.

     (f)  Exempt Transaction. Subject to the accuracy of the Warrantholder's
representations in Section 10 hereof, the issuance of the Preferred Stock upon
exercise of the Warrantholder's right to purchase such Preferred Stock will
constitute a transaction exempt from (i) the registration requirements of
Section 5 of the 1933 Act, in reliance upon Section 4(2) thereof, and (ii) the
qualification requirements of the applicable state securities laws.

     (g)  Compliance with Rule 144. At the written request of the Warrantholder,
who proposes to sell Preferred Stock issuable upon the exercise of the Warrant
in compliance with Rule 144 promulgated by the Securities and Exchange
Commission under the 1933 Act, the Company shall furnish to the Warrantholder,
within ten days after receipt of such request, a written statement confirming
the Company's compliance with the filing requirements of the Securities and
Exchange Commission as set forth in such Rule as then applicable to the Company,
as such Rule may be amended from time to time.


                                      -5-
<PAGE>   6
10.  REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

     This Warrant Agreement has been entered into by the Company in reliance
upon the following representations and covenants of the Warrantholder which by
its execution hereof the Warrantholder hereby confirms:

     (a)  Investment Purpose. The right to acquire Preferred Stock or the
Preferred Stock issuable upon exercise of the Warrantholder's rights contained
herein will be acquired for investment and not with a view to the sale or
distribution of any part thereof, and the Warrantholder has no present intention
of selling or engaging in any public distribution of the same except pursuant to
a registration or exemption.

     (b)  Private Issue. The Warrantholder understands (i) that the Preferred
Stock issuable upon exercise of this Warrant is not registered under the 1933
Act or qualified under applicable state securities laws on the ground that the
issuance contemplated by this Warrant Agreement will be exempt from the
registration and qualifications requirements thereof, and (ii) that the
Company's reliance on such exemption is predicated on the representations set
forth in this Section 10.

     (c)  Disposition of Warrantholder's Rights. In no event will the
Warrantholder make a disposition of any of its rights to acquire Preferred Stock
or Preferred Stock issuable upon exercise of such rights unless and until (i) it
shall have notified the Company of the proposed disposition and (ii) if
requested by the Company it shall have furnished the Company with an opinion of
counsel (which counsel may either be inside or outside counsel to the
Warrantholder) satisfactory to the Company and its counsel to the effect that
(A) appropriate action necessary for compliance with the 1933 Act has been
taken, or (B) an exemption from the registration requirements of the 1933 Act is
available. Notwithstanding the foregoing, the restrictions imposed upon the
transferability of any of its rights to acquire Preferred Stock or Preferred
Stock issuable on the exercise of such rights do not apply to transfers from the
beneficial owner of any of the aforementioned securities to its nominee or from
such nominee to its beneficial owner, and shall terminate as to any particular
share of Preferred Stock when (1) such security shall have been effectively
registered under the 1933 Act and sold by the holder thereof in accordance with
such registration or (2) such security shall have been sold without registration
in compliance with Rule 144 under the 1933 Act, or (3) a letter shall have been
issued to the Warrantholder at its request by the staff of the Securities and
Exchange Commission or a ruling shall have been issued to the Warrantholder at
its request by such Commission stating that no action shall be recommended by
such staff or taken by such Commission, as the case may be, if such security is
transferred without registration under the 1933 Act in accordance with the
conditions set forth in such letter or ruling and such letter or ruling
specifies that no subsequent restrictions on transfer are required. Whenever the
restrictions imposed hereunder shall terminate, as hereinabove provided, the
Warrantholder or holder of a share of Preferred Stock then outstanding as to
which such restrictions have terminated shall be entitled to receive from the
Company, without expense to such holder, one or more new certificates for the
Warrant or for such shares of Preferred Stock not bearing any restrictive
legend.

     (d)  Financial Risk. The Warrantholder has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its
investment.

     (e)  Risk of No Registration. The Warrantholder understands that if the
Company does not register with the Securities and Exchange Commission pursuant
to Section 12 of the 1934 Act (the "1934 Act"), or file reports pursuant to
Section 15(d), of the 1934 Act, or if a registration statement covering the
securities under the 1933 Act is not in effect when it desires to sell (i) the
rights to purchase Preferred Stock pursuant to this Warrant Agreement, or (ii)
the Preferred Stock issuable upon exercise of the right to purchase, it may be
required to hold such securities for an indefinite period. The Warrantholder
also understands that any sale of its rights of the Warrantholder to purchase
Preferred Stock or Preferred Stock which might be made by it in reliance upon
Rule 144 under the 1933 Act may be made only in accordance with the terms and
conditions of that Rule.

     (f)  Accredited Investor. Warrantholder is an "accredited investor" within
the meaning of the Securities and Exchange Rule 501 of Regulation D, as
presently in effect.

                                      -6-
<PAGE>   7
11.  TRANSFERS.

     Subject to the terms and conditions contained in Section 10 hereof, this
Warrant Agreement and all rights hereunder are transferable in whole or in part
by the Warrantholder and any successor transferee, provided, however, in no
event shall the number of transfers of the rights and interests in all of the
Warrants exceed three (3) transfers. The transfer shall be recorded on the books
of the Company upon receipt by the Company of a notice of transfer in the form
attached hereto as Exhibit III (the "Transfer Notice"), at its principal
offices and the payment to the Company of all transfer taxes and other
governmental charges imposed on such transfer.

12.  MISCELLANEOUS.

     (a)  Effective Date. The provision of this Warrant Agreement shall be
construed and shall be given effect in all respects as if it had been executed
and delivered by the Company on the date hereof. This Warrant Agreement shall
be binding upon any successors or assigns of the Company.

     (b)  Attorney's Fees. In any litigation, arbitration or court proceeding
between the Company and the Warrantholder relating hereto, the prevailing party
shall be entitled to attorneys' fees and expenses and all costs of proceedings
incurred in enforcing this Warrant Agreement.

     (c)  Governing Law. This Warrant Agreement shall be governed by and
construed for all purposes under and in accordance with the laws of the State
of Illinois.

     (d)  Counterparts. This Warrant Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     (e)  Notices. Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon personal delivery, facsimile
transmission (provided that the original is sent by personal delivery or mail
as hereinafter set forth) or seven (7) days after deposit in the United States
mail, by registered or certified mail, addressed (i) to the Warrantholder at
6111 North River Road, Rosemont, Illinois 60018, attention: James Labe, Venture
Group, cc: Legal Department, attention: General Counsel, (and/or, if by
facsimile, (847) 518-5465 and (847) 518-5088, and (ii) to the Company at 887
Industrial Road, Suite G, San Carlos, CA. 94070 (and/or if by facsimile, (650)
598-1358 or at such other address as any such party may subsequently designate
by written notice to the other party.

     (f)  Remedies. In the event of any default hereunder, the non-defaulting
party may proceed to protect and enforce its rights either by suit in equity
and/or by action at law, including but not limited to an action for damages as
a result of any such default, and/or an action for specific performance for any
default where Warrantholder will not have an adequate remedy at law and where
damages will not be readily ascertainable. The Company expressly agrees that it
shall not oppose an application by the Warrantholder or any other person
entitled to the benefit of this Agreement requiring specific performance of any
or all provisions hereof or enjoining the Company from continuing to commit any
such breach of this Agreement.

     (g)  No Impairment of Rights. The Company will not, by amendment of its
Charter or through any other means, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate in order to protect the rights
of the Warrantholder against impairment.

     (h)  Survival.  The representations, warranties, covenants and conditions
of the respective parties contained herein or made pursuant to this Warrant
Agreement shall survive the execution and delivery of this Warrant Agreement.

     (i)  Severability. In the event any one or more of the provisions of this
Warrant Agreement shall for any reason be held invalid, illegal or
unenforceable, the remaining provisions of this Warrant Agreement shall be
unimpaired, and the invalid, illegal or unenforceable provision shall be
replaced by a mutually acceptable valid, legal and enforceable provision, which
comes closest to the intention of the parties underlying the invalid, illegal
or unenforceable provision.


                                      -7-
<PAGE>   8
     (j)  Amendments. Any provision of this Warrant Agreement may be amended by
a written instrument signed by the Company and by the Warrantholder.

     (k)  Additional Documents. The Company, upon execution of this Warrant
Agreement, shall provide the Warrantholder with certified resolutions with
respect to the representations, warranties and covenants set forth in
subparagraphs (a) through (d), (f) and (g) of Section 9 above. The Company
shall also supply such other documents as the Warrantholder may from time to
time reasonably request.

     IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement
to be executed by its officers thereunto duly authorized as of the Effective
Date.

                                   COMPANY: ARGONAUT TECHNOLOGIES, INC.

                                   By: /s/ D.P. BINKLEY
                                      ---------------------------------
                                   Title:
                                         ------------------------------

                                   WARRANTHOLDER: COMDISCO, INC.

                                   By: /s/ JAMES P. LABE
                                      ---------------------------------
                                                JAMES P. LABE
                                                   PRESIDENT
                                   Title: COMDISCO VENTURES DIVISION
                                          -----------------------------


                                      -8-

<PAGE>   9
                                   EXHIBIT I

                               NOTICE OF EXERCISE


TO:  _______________________

(1)  The undersigned Warrantholder hereby elects to purchase _______ shares of
     the Series _____ Preferred Stock of _______________, pursuant to the terms
     of the Warrant Agreement dated the _______ day of ____________, 19__ (the
     "Warrant Agreement") between ________________________ and the
     Warrantholder, and tenders herewith payment of the purchase price for such
     shares in full, together with all applicable transfer taxes, if any, as set
     forth below:

          (a)  by cash or check __________

                       or

          (b)  by Net Issuance as defined in the Warrant Agreement __________

(2)  In exercising its rights to purchase the Series _____ Preferred Stock of
     __________________________, the undersigned hereby confirms and
     acknowledges the investment representations and warranties made in Section
     10 of the Warrant Agreement.

(3)  Please issue a certificate or certificates representing said shares of
     Series _____ Preferred Stock in the name of the undersigned or in such
     other name as is specified below.


________________________
(Name)

________________________
(Address)


WARRANTHOLDER: COMDISCO, INC.

By:    ______________________

Title: ______________________

Date:  ______________________