EXHIBIT 4.1

                             STOCK PURCHASE WARRANT
                             ----------------------

         This STOCK PURCHASE WARRANT ("Warrant") is issued this ____ day of
August, 1999, by DYNAGEN, INC., a Delaware corporation (the "Company"), to
ARGOSY INVESTMENT PARTNERS, L.P.("Argosy"), a Pennsylvania limited partnership
(Argosy and any subsequent assignee or transferee hereof are hereinafter
referred to collectively as "Holder" or "Holders").

                                   AGREEMENT:

         1. ISSUANCE OF WARRANT; TERM. In conjunction with that Secured
Promissory Note (the ANote@) dated June 18, 1997, of this date in an amount of
One Million and no/100ths Dollars ($1,000,000.00) and related loan agreement
(the "Loan Agreement"), and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company hereby grants to
Holder the right to purchase 56,250 shares of the Company's common stock (the
"Common Stock"). The shares of Common Stock issuable upon exercise of this
Warrant are hereinafter referred to as the "Shares." This Warrant shall be
exercisable at any time and from time to time from the date hereof until July
31, 2002 (the AExpiration Date@).

         2. EXERCISE PRICE. The exercise price (the "Exercise Price") per share
for which all or any of the Shares may be purchased pursuant to the terms of
this Warrant shall be One Cent ($.01).

         3. EXERCISE. This Warrant may be exercised by the Holder hereof (but
only on the conditions hereinafter set forth) in whole or in part, upon delivery
of written notice of intent to exercise to the Company in the manner at the
address of the Company set forth in Section 13 hereof, together with this
Warrant and payment to the Company of the aggregate Exercise Price of the Shares
so purchased. The Exercise Price shall be payable, at the option of the Holder,
(i) by certified or bank check, (ii) by the surrender of the Note or portion
thereof having an outstanding principal balance equal to the aggregate Exercise
Price or (iii) by the surrender of a portion of this Warrant where the Shares
subject to the portion of this Warrant that is surrendered have a fair market
value equal to the aggregate Exercise Price. In the absence of an established
public market for the Common Stock, fair market value shall be established by
the Company=s board of directors in a commercially reasonable manner. Upon
exercise of this Warrant as aforesaid, the Company shall as promptly as
practicable, and in any event within fifteen (15) days thereafter, execute and
deliver to the Holder of this Warrant a certificate or certificates for the
total number of whole Shares for which this Warrant is being exercised in such
names and denominations as are requested by such Holder. If this Warrant shall
be exercised with respect to less than all of the Shares, the Holder shall be
entitled to receive a new Warrant covering the number of Shares in respect of
which this Warrant shall not have been exercised, which new Warrant shall in all
other respects be identical to this Warrant. The Company covenants and agrees
that it will pay when due any and all state and federal issue taxes which may be
payable in respect of the issuance of this Warrant or the issuance of any Shares
upon exercise of this Warrant.

         4. COVENANTS AND CONDITIONS. The above provisions are subject to the
following:

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                  (a) Neither this Warrant nor the Shares have been registered
         under the Securities Act of 1933, as amended ("Securities Act"), or any
         state securities laws ("Blue Sky Laws"). This Warrant has been acquired
         for investment purposes and not with a view to distribution or resale
         and may not be sold or otherwise transferred without (i) an effective
         registration statement for such Warrant under the Securities Act and
         such applicable Blue Sky Laws, or (ii) an opinion of counsel, which
         opinion and counsel shall be reasonably satisfactory to the Company and
         its counsel, that registration is not required under the Securities Act
         or under any applicable Blue Sky Laws (the Company hereby acknowledges
         that Boult, Cummings, Conners & Berry, PLC is acceptable counsel).
         Transfer of the Shares shall be restricted in the same manner and to
         the same extent as the Warrant and the certificates representing such
         Shares shall bear substantially the following legend:

                  THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE
                  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED (THE "ACT"), OR ANY APPLICABLE STATE SECURITIES LAW
                  AND MAY NOT BE TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT
                  UNDER THE ACT AND SUCH APPLICABLE STATE SECURITIES LAWS SHALL
                  HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (II) IN THE
                  OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, REGISTRATION
                  UNDER SUCH SECURITIES ACTS AND SUCH APPLICABLE STATE
                  SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH
                  PROPOSED TRANSFER.

         The Holder hereof and the Company agree to execute such other documents
         and instruments as counsel for the Company reasonably deems necessary
         to effect the compliance of the issuance of this Warrant and any shares
         of Common Stock issued upon exercise hereof with applicable federal and
         state securities laws.

                  (b) The Company covenants and agrees that all Shares which may
         be issued upon exercise of this Warrant will, upon issuance and payment
         therefor, be legally and validly issued and outstanding, fully paid and
         nonassessable, free from all taxes, liens, charges and preemptive
         rights, if any, with respect thereto or to the issuance thereof. The
         Company shall at all times reserve and keep available for issuance upon
         the exercise of this Warrant such number of authorized but unissued
         shares of Common Stock as will be sufficient to permit the exercise in
         full of this Warrant.

         5. TRANSFER OF WARRANT. Subject to the provisions of Section 4 hereof,
this Warrant may be transferred, in whole or in part, to any person or business
entity, by presentation of the Warrant to the Company with written instructions
for such transfer. Upon such presentation for transfer, the Company shall
promptly execute and deliver a new Warrant or Warrants in the form hereof in the
name

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of the assignee or assignees and in the denominations specified in such
instructions. The Company shall pay all expenses incurred by it in connection
with the preparation, issuance and delivery of Warrants under this Section.

         6. WARRANT HOLDER NOT SHAREHOLDER; RIGHTS OFFERING; PREEMPTIVE RIGHTS.
Except as otherwise provided herein, this Warrant does not confer upon the
Holder, as such, any right whatsoever as a shareholder of the Company.
Notwithstanding the foregoing, if the Company should offer to all of the
Company's shareholders the right to purchase any securities of the Company, then
all shares of Common Stock that are subject to this Warrant shall be deemed to
be outstanding and owned by the Holder and the Holder shall be entitled to
participate in such rights offering. The Company shall not grant any preemptive
rights with respect to any of its capital stock without the prior written
consent of the Holder.

         7. OBSERVATION RIGHTS. The Holder of this Warrant shall receive notice
of and be entitled to attend or may send a representative to attend all meetings
of the Company's Board of Directors in a non-voting observation capacity and
shall receive a copy of all correspondence and information delivered to the
Company's Board of Directors, from the date hereof until such time as the
indebtedness evidenced by the Note has been paid in full.

         8.       ADJUSTMENT UPON CHANGES IN STOCK.

                  (a) If all or any portion of this Warrant shall be exercised
         subsequent to any stock split, stock dividend, recapitalization,
         combination of shares of the Company, or other similar event, occurring
         after the date hereof, then the Holder exercising this Warrant shall
         receive, for the aggregate Exercise Price, the aggregate number and
         class of shares which such Holder would have received if this Warrant
         had been exercised immediately prior to such stock split, stock
         dividend, recapitalization, combination of shares, or other similar
         event. If any adjustment under this Section 8(a), would create a
         fractional share of Common Stock or a right to acquire a fractional
         share of Common Stock, such fractional share shall be disregarded and
         the number of shares subject to this Warrant shall be the next higher
         number of shares, rounding all fractions upward. Whenever there shall
         be an adjustment pursuant to this Section 8(a), the Company shall
         forthwith notify the Holder or Holders of this Warrant of such
         adjustment, setting forth in reasonable detail the event requiring the
         adjustment and the method by which such adjustment was calculated.

                  (b) If all or any portion of this Warrant shall be exercised
         subsequent to any merger, consolidation, exchange of shares,
         separation, reorganization or liquidation of the Company, or other
         similar event, occurring after the date hereof, as a result of which
         shares of Common Stock shall be changed into the same or a different
         number of shares of the same or another class or classes of securities
         of the Company or another entity, or the holders of Common Stock are
         entitled to receive cash or other property, then the Holder exercising
         this Warrant shall receive, for the aggregate Exercise Price, the
         aggregate number and class of shares, cash or other property which such
         Holder would have received if this Warrant had been exercised

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<PAGE>

         immediately prior to such merger, consolidation, exchange of shares,
         separation, reorganization or liquidation, or other similar event. If
         any adjustment under this Section 8(b) would create a fractional share
         of Common Stock or a right to acquire a fractional share of Common
         Stock, such fractional share shall be disregarded and the number of
         shares subject to this Warrant shall be the next higher number of
         shares, rounding all fractions upward. Whenever there shall be an
         adjustment pursuant to this Section 8(b), the Company shall forthwith
         notify the Holder or Holders of this Warrant of such adjustment,
         setting forth in reasonable detail the event requiring the adjustment
         and the method by which such adjustment was calculated.

                  9.       REGISTRATION.

                  (a) The Company and the holders of the Shares agree that if at
         any time after the date hereof the Company shall propose to file a
         registration statement with respect to any of its Common Stock on a
         form suitable for a secondary offering (including its initial public
         offering), it will give notice in writing to such effect to the
         registered holder(s) of the Shares at least thirty (30) days prior to
         such filing, and, at the written request of any such registered holder,
         made within ten (10) days after the receipt of such notice, will
         include therein at the Company's cost and expense (including the fees
         and expenses of counsel to such holder(s), but excluding underwriting
         discounts, commissions and filing fees attributable to the Shares
         included therein) such of the Shares as such holder(s) shall request;
         provided, however, that if the offering being registered by the Company
         is underwritten and if the representative of the underwriters certifies
         in writing that the inclusion therein of the Shares would materially
         and adversely affect the sale of the securities to be sold by the
         Company thereunder, then the Company shall be required to include in
         the offering only that number of securities, including the Shares,
         which the underwriters determine in their sole discretion will not
         jeopardize the success of the offering (the securities so included to
         be apportioned pro rata among all selling shareholders according to the
         total amount of securities entitled to be included therein owned by
         each selling shareholder, but in no event shall the total amount of
         Shares included in the offering be less than the number of securities
         included in the offering by any other single selling shareholder unless
         all of the Shares are included in the offering).

                  (b) Whenever the Company undertakes to effect the registration
         of any of the Shares, the Company shall, as expeditiously as reasonably
         possible:


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                           (i) Prepare and file with the Securities and Exchange
                  Commission (the "Commission") a registration statement
                  covering such Shares and use its best efforts to cause such
                  registration statement to be declared effective by the
                  Commission as expeditiously as possible and to keep such
                  registration effective until the earlier of (A) the date when
                  all Shares covered by the registration statement have been
                  sold or (B) one hundred eighty (180) days from the effective
                  date of the registration statement; provided, that before
                  filing a registration statement or prospectus or any amendment
                  or supplements thereto, the Company will furnish to each
                  Holder of Shares covered by such registration statement and
                  the underwriters, if any, copies of all such documents
                  proposed to be filed (excluding exhibits, unless any such
                  person shall specifically request exhibits), which documents
                  will be subject to the review of such Holders and
                  underwriters, and the Company will not file such registration
                  statement or any amendment thereto or any prospectus or any
                  supplement thereto (including any documents incorporated by
                  reference therein) with the Commission if (A) the
                  underwriters, if any, shall reasonably object to such filing
                  or (B) if information in such registration statement or
                  prospectus concerning a particular selling Holder has changed
                  and such Holder or the underwriters, if any, shall reasonably
                  object.

                           (ii) Prepare and file with the Commission such
                  amendments and post-effective amendments to such registration
                  statement as may be necessary to keep such registration
                  statement effective during the period referred to in Section
                  10(b)(i) and to comply with the provisions of the Securities
                  Act with respect to the disposition of all securities covered
                  by such registration statement, and cause the prospectus to be
                  supplemented by any required prospectus supplement, and as so
                  supplemented to be filed with the Commission pursuant to Rule
                  424 under the Securities Act.

                           (iii) Furnish to the selling Holder(s) such numbers
                  of copies of such registration statement, each amendment
                  thereto, the prospectus included in such registration
                  statement (including each preliminary prospectus), each
                  supplement thereto and such other documents as they may
                  reasonably request in order to facilitate the disposition of
                  the Shares owned by them.

                           (iv) Use its best efforts to register and qualify
                  under such other securities laws of such jurisdictions as
                  shall be reasonably requested by any selling Holder and do any
                  and all other acts and things which may be reasonably
                  necessary or advisable to enable such selling Holder to
                  consummate the disposition of the Shares owned by such Holder,
                  in such jurisdictions; provided, however, that the Company
                  shall not be required in connection therewith or as a
                  condition thereto to qualify to transact business or to file a
                  general consent to service of process in any such states or
                  jurisdictions.


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<PAGE>


                           (v) Promptly notify each selling Holder of the
                  happening of any event as a result of which the prospectus
                  included in such registration statement contains an untrue
                  statement of a material fact or omits any fact necessary to
                  make the statements therein not misleading and, at the request
                  of any such Holder, the Company will prepare a supplement or
                  amendment to such prospectus so that, as thereafter delivered
                  to the purchasers of such Shares, such prospectus will not
                  contain an untrue statement of a material fact or omit to
                  state any fact necessary to make the statements therein not
                  misleading.

                           (vi) Provide a transfer agent and registrar for all
                  such Shares not later than the effective date of such
                  registration statement.

                           (vii) Enter into such customary agreements (including
                  underwriting agreements in customary form for a primary
                  offering) and take all such other actions as the underwriters,
                  if any, reasonably request in order to expedite or facilitate
                  the disposition of such Shares (including, without limitation,
                  effecting a stock split or a combination of shares).

                           (viii) Make available for inspection by any selling
                  Holder or any underwriter participating in any disposition
                  pursuant to such registration statement and any attorney,
                  accountant or other agent retained by any such selling Holder
                  or underwriter, all financial and other records, pertinent
                  corporate documents and properties of the Company, and cause
                  the officers, directors, employees and independent accountants
                  of the Company to supply all information reasonably requested
                  by any such seller, underwriter, attorney, accountant or agent
                  in connection with such registration statement.

                           (ix) Promptly notify the selling Holder(s) and the
                  underwriters, if any, of the following events and (if
                  requested by any such person) confirm such notification in
                  writing: (A) the filing of the prospectus or any prospectus
                  supplement and the registration statement and any amendment or
                  post-effective amendment thereto and, with respect to the
                  registration statement or any post-effective amendment
                  thereto, the declaration of the effectiveness of such
                  documents, (B) any requests by the Commission for amendments
                  or supplements to the registration statement or the prospectus
                  or for additional information, (C) the issuance or threat of
                  issuance by the Commission of any stop order suspending the
                  effectiveness of the registration statement or the initiation
                  of any proceedings for that purpose and (D) the receipt by the
                  Company of any notification with respect to the suspension of
                  the qualification of the Shares for sale in any jurisdiction
                  or the initiation or threat of initiation of any proceeding
                  for such purposes.


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<PAGE>

                           (x) Make every reasonable effort to prevent the entry
                  of any order suspending the effectiveness of the registration
                  statement and obtain at the earliest possible moment the
                  withdrawal of any such order, if entered.

                           (xi) Cooperate with the selling Holder(s) and the
                  underwriters, if any, to facilitate the timely preparation and
                  delivery of certificates representing the Shares to be sold
                  and not bearing any restrictive legends, and enable such
                  Shares to be in such lots and registered in such names as the
                  underwriters may request at least two (2) business days prior
                  to any delivery of the Shares to the underwriters.

                           (xii) Provide a CUSIP number for all the Shares not
                  later than the effective date of the registration statement.

                           (xiii) Prior to the effectiveness of the registration
                  statement and any post-effective amendment thereto and at each
                  closing of an underwritten offering, (A) make such
                  representations and warranties to the selling Holder(s) and
                  the underwriters, if any, with respect to the Shares and the
                  registration statement as are customarily made by issuers in
                  primary underwritten offerings; (B) use its best efforts to
                  obtain "cold comfort" letters and updates thereof from the
                  Company's independent certified public accountants addressed
                  to the selling Holders and the underwriters, if any, such
                  letters to be in customary form and covering matters of the
                  type customarily covered in "cold comfort" letters by
                  underwriters in connection with primary underwritten
                  offerings; (C) deliver such documents and certificates as may
                  be reasonably requested (1) by the holders of a majority of
                  the Shares being sold, and (2) by the underwriters, if any, to
                  evidence compliance with clause (A) above and with any
                  customary conditions contained in the underwriting agreement
                  or other agreement entered into by the Company; and (D) obtain
                  opinions of counsel to the Company and updates thereof (which
                  counsel and which opinions shall be reasonably satisfactory to
                  the underwriters, if any), covering the matters customarily
                  covered in opinions requested in underwritten offerings and
                  such other matters as may be reasonably requested by the
                  selling Holders and underwriters or their counsel. Such
                  counsel shall also state that no facts have come to the
                  attention of such counsel which cause them to believe that
                  such registration statement, the prospectus contained therein,
                  or any amendment or supplement thereto, as of their respective
                  effective or issue dates, contains any untrue statement of any
                  material fact or omits to state any material fact necessary to
                  make the statements therein not misleading (except that no
                  statement need be made with respect to any financial
                  statements, notes thereto or other financial data or other
                  expertized material contained therein). If for any reason the
                  Company's counsel is unable to give such opinion, the Company
                  shall so notify the Holders of the Shares and shall use its
                  best efforts to remove expeditiously all impediments to the
                  rendering of such opinion.

                           (xiv) Otherwise use its best efforts to comply with
                  all applicable rules and regulations of the Commission, and
                  make generally available to its security holders

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                  earnings statements satisfying the provisions of Section 11(a)
                  of the Securities Act, no later than forty-five (45) days
                  after the end of any twelve-month period (or ninety (90) days,
                  if such period is a fiscal year) (A) commencing at the end of
                  any fiscal quarter in which the Shares are sold to
                  underwriters in a firm or best efforts underwritten offering,
                  or (B) if not sold to underwriters in such an offering,
                  beginning with the first month of the first fiscal quarter of
                  the Company commencing after the effective date of the
                  registration statement, which statements shall cover such
                  twelve-month periods.

                  (c) The Company's obligations under Section 10(a) above with
         respect to each holder of Shares are expressly conditioned upon such
         holder's furnishing to the Company in writing such information
         concerning such holder and the terms of such holder's proposed offering
         as the Company shall reasonably request for inclusion in the
         registration statement. If any registration statement including any of
         the Shares is filed, then the Company shall indemnify each holder
         thereof (and each underwriter for such holder and each person, if any,
         who controls such underwriter within the meaning of the Securities Act)
         from any loss, claim, damage or liability arising out of, based upon or
         in any way relating to any untrue statement of a material fact
         contained in such registration statement or any omission to state
         therein a material fact required to be stated therein or necessary to
         make the statements therein not misleading, except for any such
         statement or omission based on information furnished in writing by such
         holder of the Shares expressly for use in connection with such
         registration statement; and such holder shall indemnify the Company
         (and each of its officers and directors who has signed such
         registration statement, each director, each person, if any, who
         controls the Company within the meaning of the Securities Act, each
         underwriter for the Company and each person, if any, who controls such
         underwriter within the meaning of the Securities Act) and each other
         such holder against any loss, claim, damage or liability arising from
         any such statement or omission which was made in reliance upon
         information furnished in writing to the Company by such holder of the
         Shares expressly for use in connection with such registration
         statement.

                  (d) For purposes of this Section 10, all of the Shares shall
         be deemed to be issued and outstanding.

         10.      CERTAIN NOTICES.  In case at any time the Company shall
propose to:

                  (a)      declare any cash dividend upon its Common Stock;

                  (b) declare any dividend upon its Common Stock payable in
         stock or make any special dividend or other distribution to the holders
         of its Common Stock;

                  (c) offer for subscription to the holders of any of its Common
         Stock any additional shares of stock in any class or other rights;


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                  (d) reorganize, or reclassify the capital stock of the
         Company, or consolidate, merge or otherwise combine with, or sell of
         all or substantially all of its assets to, another corporation;

                  (e) voluntarily or involuntarily dissolve, liquidate or wind
         up of the affairs of the Company; or

                  (f) redeem or purchase any shares of its capital stock or
         securities convertible into its capital stock;

         then, in any one or more of said cases, the Company shall give to the
         Holder of the Warrant, by certified or registered mail, (i) 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 or subscription rights or for determining rights
         to vote in respect of any such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding up,
         and (ii) in the case of such reorganization, reclassification,
         consolidation, merger, sale, dissolution, liquidation or winding up, at
         least twenty (20) days' prior written notice of the date when the same
         shall take place. Any notice required by clause (i) shall also specify,
         in the case of any such dividend, distribution or subscription rights,
         the date on which the holders of Common Stock shall be entitled
         thereto, and any notice required by clause (ii) shall specify the date
         on which the holders of Common Stock shall be entitled to exchange
         their Common Stock for securities or other property deliverable upon
         such reorganization, reclassification, consolidation, merger, sale,
         dissolution, liquidation or winding up, as the case may be.

         11. ARTICLE AND SECTION HEADINGS. Numbered and titled article and
section headings are for convenience only and shall not be construed as
amplifying or limiting any of the provisions of this Warrant.

         12. NOTICE. Any and all notices, elections or demands permitted or
required to be made under this Warrant shall be in writing, signed by the party
giving such notice, election or demand and shall be delivered personally,
telecopied, or sent by certified mail or overnight via nationally recognized
courier service (such as Federal Express), to the other party at the address set
forth below, or at such other address as may be supplied in writing and of which
receipt has been acknowledged in writing. The date of personal delivery or
telecopy or two (2) business days after the date of mailing (or the next
business day after delivery to such courier service), as the case may be, shall
be the date of such notice, election or demand. For the purposes of this
Warrant:

The Address of Holder is:                 Sirrom Capital Corporation
                                          Suite 200
                                          500 Church Street
                                          Nashville, TN 37219
                                          Attention: Tim McCarthy
                                          Telecopy No. 615/726-1208


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with a copy to:                           Boult, Cummings, Conners & Berry, PLC
                                          Suite 1600
                                          414 Union Street
                                          Nashville, TN 37219
                                          Attention: Roger G. Jones, Esq.
                                          Telecopy No. 615/252-6323

The Address of Company is:                DynaGen, Inc.
                                          1000 Winter Street
                                          Suite 2700
                                          Waltham, MA  02154
                                          Attention: Dhananjay G. Wadekar
                                          Fax: 781-890-0118

with a copy to:                           Foley, Hoag & Eliot LLP
                                          One Post Office Square
                                          Boston, MA 02109
                                          Attention: David A. Broadwin, Esq.

         13. SEVERABILITY. If any provisions(s) of this Warrant or the
application thereof to any person or circumstances shall be invalid or
unenforceable to any extent, the remainder of this Warrant and the application
of such provisions to other persons or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law.

         14. ENTIRE AGREEMENT. This Warrant between the Company and Holder
represents the entire agreement between the parties concerning the subject
matter hereof, and all oral discussions and prior agreement are merged herein.

         15. GOVERNING LAW AND AMENDMENTS. This Warrant shall be construed and
enforced under the laws of the State of Tennessee applicable to contracts to be
wholly performed in such State. No amendment or modification hereof shall be
effective except in a writing executed by each of the parties hereto.

         16. COUNTERPARTS. This Warrant may be executed in any number of
counterparts and be different parties to this Warrant in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same Warrant.

         17. CONSENT TO JURISDICTION; EXCLUSIVE VENUE. The Company hereby
irrevocably consents to the jurisdiction of the United States District Court for
the Middle District of Tennessee and of all Tennessee state courts sitting in
Davidson County, Tennessee, for the purpose of any litigation to which Holder
may be a party and which concerns this Warrant. It is further agreed that venue
for

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any such action shall lie exclusively with courts sitting in Davidson County,
Tennessee, unless Holder agrees to the contrary in writing.

         18. WAIVER OF TRIAL BY JURY. HOLDER AND THE COMPANY HEREBY KNOWINGLY
AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS,
PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE,
AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO THIS WARRANT.

         19. EQUITY PARTICIPATION. This Warrant is issued in connection with the
Loan Agreement. It is intended that this Warrant constitute an equity
participation under and pursuant to T.C.A. '47-24-101, et seq. and that equity
participation be permitted under said statutes and not constitute interest on
the Note. If under any circumstances whatsoever, fulfillment of any obligation
of this Warrant, the Loan Agreement, or any other agreement or document executed
in connection with the Loan Agreement, shall violate the lawful limit of any
applicable usury statute or any other applicable law with regard to obligations
of like character and amount, then the obligation to be fulfilled shall be
reduced to such lawful limit, such that in no event shall there occur, under
this Warrant, the Loan Agreement, or any other document or instrument executed
in connection with the Loan Agreement, any violation of such lawful limit, but
such obligation shall be fulfilled to the lawful limit. If any sum is collected
in excess of the lawful limit, such excess shall be applied to reduce the
principal amount of the Note.

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         IN WITNESS WHEREOF, the parties hereto have set their hands as of the
date first above written.

                                    COMPANY:

                                    DYNAGEN, INC.,
                                    a Delaware corporation

                                    By:______________________________________
                                    Title:___________________________________



                                    HOLDER:

                                    ARGOSY INVESTMENT PARTNERS, L.P.
                                    A Pennsylvania limited partnership

                                    By:______________________________________
                                    Title:___________________________________






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