Document:

STATE OF SOUTH CAROLINA  )

THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO S.C.CODE ANN. SECTION 15-48-10 ET SEQ., CODE OF LAWS OF SOUTH CAROLINA, 1976 (AS AMENDED).

IF THE SOUTH CAROLINA UNIFORM ARBITRATION ACT IS DEEMED NOT TO APPLY, THIS AGREEMENT IS SUBJECT TO ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT, TITLE 9, SECTION 1 ET. SEQ., UNITED STATES CODE (AS AMENDED).

AMENDED

EMPLOYMENT AGREEMENT

This Agreement is effective upon its execution by and between Synalloy Corporation, a corporation organized under the laws of the State of Delaware (the "'Corporation"'), and Ronald H. Braam, a resident of Cleveland, Tennessee (the "'Employee"').

W I T N E S S E T H:

That in consideration of the agreements hereinafter contained, the parties hereto agree as follows:

	Employment.  The Corporation agrees to extend until November 1, 2005, the term of the initial Agreement between Employer and the Employee.  The Employee agrees to serve as President of Specialty Chemicals and in such other capacities as the Board of Directors of the Corporation (the "'Board"') may designate from time to time.  During the term of his employment, the Employee shall devote his full time, attention, skill and efforts to the performance of his duties for the Corporation. On November 1, 2005 and each anniversary thereafter, this agreement shall be automatically extended for one year unless either party gives notice of intent to cancel this agreement ninety days prior to an automatic extension date.

	Compensation.  The Corporation shall pay the Employee during the term of his employment hereunder a base salary of One Hundred Sixty-five Thousand and 00/100ths Dollars ($165,000.00) per year together with compensation payable as provided in Paragraph 3 below, unless forfeited by the occurrence of any of the events of forfeiture specified in Paragraph 7 below.  Salary shall be payable monthly or on a less frequent basis by mutual agreement. 

	Bonus.  In addition to the base salary provided for in Paragraph 2 above, for each fiscal year during which Employee serves as President of the Specialty Chemicals Group and provided Employee is in the employ of the Corporation on the last day of such fiscal year (except as provided in paragraphs 5 and 6 hereof), the Employee shall be entitled to be a Designated Participant in any Synalloy Corporation Subsidiary and Divisional Management Incentive Plan covering the Specialty Chemicals Group. A copy of the Plan covering fiscal 2002 is attached to and is a part of this Agreement.

	Other Benefits. Employee shall be eligible to participate in all employee benefits plans in accordance with the terms of such plans. Corporation and Employee are parties to an agreement dated May 21, 1980, and modified June 16, 1985 and February 6, 2003, which provides for certain benefits to the parties thereto. This employment agreement does not change or modify any provision of that agreement as modified.

	Disability.  If because of illness, physical or mental disability, or other incapacity, certified by a physician acceptable to the Corporation, Employee shall fail to render the services provided for by this Agreement, or if Employee contracts an illness or injury, certified by a physician acceptable to the Corporation, which will permanently prevent the performance by him of the services provided for by this Agreement, then the "'base salary"' provided for in Paragraph 2 hereof shall continue for three (3) months, with the bonus-compensation for that fiscal year to be prorated to the date Employee's disability commenced.

	Death.  If the Employee dies during the term of this Agreement, then the "'base salary"' provided for in Paragraph 2 hereof shall continue during for three (3) months, which "'base salary"' shall be paid to the estate of Employee, with the bonus-compensation for that fiscal year to be prorated to the date of Employee's death.  In the event of Employee's death and the termination of this Agreement on the terms of this paragraph, all other obligations of the Corporation under this Agreement shall cease and terminate.

	Termination for Cause.  Nothing in this Agreement shall be construed to prevent the Corporation from terminating Employee's employment hereunder at any time for cause.  Fraud, dishonesty, gross negligence, willful misconduct, misappropriation, embezzlement, material violation of any code of conduct adopted by the Board, excessive absences from work (except for reasons of health), entry of any order by the Securities and Exchange Commission pursuant to Section 21C of the Securities Exchange Act of 1934 or Section 8A of the Securities Act of 1933 prohibiting Employee from serving as an officer or director of an issuer that has a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 or that is required to file reports pursuant to Section 15(d) of that Act, or the like, or any act or omission deemed by the Board to have been disloyal to the Corporation shall constitute cause for termination.  Termination for cause pursuant to this paragraph shall not constitute a breach of this Agreement by the Corporation.

	Covenant Not to Compete.  Employee agrees during the term of employment and for a period of one (1) year after his employment terminates for any reason, the Employee will not, without the prior written approval of the Board, become an officer, employee, agent, partner, or director of any business enterprise which competes with the Corporation and its affiliates for customers, orders, supply sources, or contracts in those businesses in which the Corporation and its affiliates were engaged on the date his employment terminated, unless, Employee's activities for such business enterprise are limited in such a way that Employee is not engaged, directly or indirectly, in competition with the Corporation or its affiliates for customers, orders, supply sources or contracts, and limited to the States of North Carolina, South Carolina, Georgia, Tennessee and Alabama.  

Employee further agrees that at no time during his employment or thereafter will he divulge, communicate or use to the detriment of the Corporation any of the Corporation's confidential information, data, trade secrets, sale methods, customer lists, supply sources, or other proprietary information.

	Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision hereof.

	Arbitration.  Any controversy or claim arising out of, or relating to this Agreement, or the breach thereof, shall be settled by arbitration in the City of Spartanburg, State of South Carolina, in accordance with the rules then obtaining of the American Arbitration Association, and judgment upon the award rendered may be entered in any Court having jurisdiction thereof.

	Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered or certified mail to his residence in the case of Employee, or to its Executive Offices in the case of the Corporation.

	Benefit.  This Agreement, in accordance with its terms and conditions, shall inure to the benefit of and be binding upon the Corporation, its successors and assigns, including but not limited to any corporation which may acquire all or substantially all of the Corporation's assets and business, or with or into which the Corporation may be consolidated or merged, and Employee, his heirs, executors, administrators, and legal representatives, provided that the obligations of the Employee hereunder may not be delegated.  Employee agrees, however, that any such sale or merger shall not be deemed a termination hereunder provided that the Employee's operational duties are not substantially reduced as a result thereof.

	Choice of Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of South Carolina.

	Entire Agreement.  This instrument amends and restates the Employment Agreement between the parties dated November 25, 1996, and contains the entire agreement of the parties hereto.  It may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year below written. 

[SIGNATURES OMITTED]EXHIBIT C

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
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  AS  EVIDENCED  BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
REASONABLY  ACCEPTABLE  TO  THE  COMPANY  TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL  BE  REASONABLY ACCEPTABLE TO THE COMPANY. 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.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                                U.S. ENERGY CORP.

     THIS  COMMON  STOCK  PURCHASE  WARRANT  (the "Warrant") CERTIFIES that, for
                                                   -------
value  received,  _____________  (the "Holder"), is entitled, upon the terms and
                                       ------
subject to the limitations on exercise and the conditions hereinafter set forth,
from  the  day  beginning  three months after the date of the Purchase Agreement
(the  "Initial Exercise Date") as to 25% of the Warrant Shares and an additional
       ---------------------
25%  of the Warrant Shares on each of the six month, nine month and twelve month
anniversary  dates of the date of the Purchase Agreement, and on or prior to the
third  anniversary of the Initial Exercise Date (the "Termination Date") but not
                                                      ----------------
thereafter,  to  subscribe  for  and  purchase from U.S. Energy Corp., a Wyoming
corporation (the "Company"), up to ____________ shares (the "Warrant Shares") of
                  -------                                    --------------
Common  Stock,  par  value $0.01 per share, of the Company (the "Common Stock");
                                                                 ------------
provided  that  if the Company exercises its right to Call this Warrant pursuant
to  Section  13,  the  Holder  shall have the right to immediately exercise this
Warrant for all Warrant Shares.  The purchase price of one share of Common Stock
(the  "Exercise  Price")  under  this Warrant shall be 90% of the average of the
       ---------------
five VWAPs immediately preceding the date of exercise, but in no event less than
$1.50  per  Warrant  Share  (subject to adjustment for any stock splits, reverse
stock  splits  and  similar  capital  events  after  the  issuance  date of this
Warrant),  and  subject  to further adjustment hereunder. CAPITALIZED TERMS USED
AND  NOT  OTHERWISE  DEFINED  HEREIN  SHALL  HAVE THE MEANINGS SET FORTH IN THAT
CERTAIN SECURITIES PURCHASE AGREEMENT (THE "PURCHASE AGREEMENT"), DATED FEBRUARY
                                            ------------------
___,  2004,  AMONG  THE  COMPANY,  ROCKY  MOUNTAIN  GAS, INC. AND THE PURCHASERS
SIGNATORY  THERETO.

                                       1.
<PAGE>
------
     1.  Title  to  Warrant.  Prior  to  the  Termination  Date  and  subject to
         ------------------
compliance  with applicable laws and Section 7 of this Warrant, this Warrant and
all  rights  hereunder  are  transferable, in whole or in part, at the office or
agency  of  the  Company by the Holder in person or by duly authorized attorney,
upon  surrender of this Warrant together with the Assignment Form annexed hereto
properly  endorsed.  The  transferee shall sign an investment letter in form and
substance  reasonably  satisfactory  to  the  Company.

     2.  Authorization  of Shares. The Company covenants that all Warrant Shares
         ------------------------
which may be issued upon the exercise of the purchase rights represented by this
Warrant  will, upon exercise of the purchase rights represented by this Warrant,
be  duly  authorized, validly issued, fully paid and nonassessable and free from
all  taxes,  liens and charges in respect of the issue thereof (other than taxes
in  respect  of  any  transfer  occurring  contemporaneously  with  such issue).

     3.  Exercise  of  Warrant.
         ---------------------
          (a) Exercise of the purchase rights represented by this Warrant may be
     made at any time or times on or after the Initial Exercise Date (as to that
     number of Warrant Shares for which this Warrant is then exercisable) and on
     or  before  the  Termination  Date  by  delivery  to  the Company of a duly
     executed  facsimile  copy of the Notice of Exercise Form annexed hereto (or
     such other office or agency of the Company as it may designate by notice in
     writing to the registered Holder at the address of such Holder appearing on
     the  books of the Company); provided, however, within 5 Trading Days of the
                                 --------  -------
     date  said Notice of Exercise is delivered to the Company, the Holder shall
     have  surrendered  this  Warrant  to the Company and the Company shall have
     received  payment  of  the  aggregate  Exercise Price of the shares thereby
     purchased  by  wire  transfer  or  cashier's check drawn on a United States
     bank. Certificates for shares purchased hereunder shall be delivered to the
     Holder within 3 Trading Days from the delivery to the Company of the Notice
     of  Exercise  Form,  surrender of this Warrant and payment of the aggregate
     Exercise  Price  as  set  forth above ("Warrant Share Delivery Date"). This
                                             ---------------------------
     Warrant  shall  be  deemed  to have been exercised on the date the Exercise
     Price  is  received  by  the Company. The Warrant Shares shall be deemed to
     have  been issued, and Holder or any other person so designated to be named
     therein  shall  be  deemed to have become a holder of record of such shares
     for  all purposes, as of the date the Warrant has been exercised by payment
     to  the  Company of the Exercise Price and all taxes required to be paid by
     the  Holder,  if  any,  pursuant to Section 5 prior to the issuance of such
     shares,  have  been  paid.  If the Company fails to deliver to the Holder a
     certificate  or  certificates  representing  the Warrant Shares pursuant to
     this  Section  3(a)  by  the  third Trading Day following the Warrant Share
     Delivery  Date,  then  the  Holder  will  have  the  right  to rescind such
     exercise.  In  addition to any other rights available to the Holder, if the
     Company  fails  to  deliver  to  the  Holder  a certificate or certificates
     representing  the  Warrant  Shares  pursuant  to  an  exercise by the third
     Trading  Day  after  the Warrant Share Delivery Date, and if after such day
     the  Holder  is  required  by  its  broker  to  purchase (in an open market
     transaction or otherwise) shares of Common Stock to deliver in satisfaction
     of  a sale by the Holder of the Warrant Shares which the Holder anticipated
     receiving  upon  such exercise (a "Buy-In"), then the Company shall (1) pay
                                        ------
     in  cash  to the Holder the amount by which (x) the Holder's total purchase
     price  (including  brokerage  commissions, if any) for the shares of Common
     Stock  so  purchased exceeds (y) the amount obtained by multiplying (A) the
     number  of  Warrant  Shares that the Company was required to deliver to the
     Holder  in  connection  with  the  exercise at issue times (B) the price at
     which  the sell order giving rise to such purchase obligation was executed,
     and  (2)  at  the option of the Holder, either reinstate the portion of the
     Warrant and equivalent number of Warrant Shares for which such exercise was
     not  honored  or deliver to the Holder the number of shares of Common Stock
     that  would  have  been  issued  had  the  Company timely complied with its
     exercise  and  delivery  obligations  hereunder. 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 exercise of shares of Common Stock with
     an aggregate sale price giving rise to such purchase obligation of $10,000,
     under clause (1) 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,  together  with  applicable  confirmations  and other evidence
     reasonably  requested by the Company. 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 exercise of
     the  Warrant  as  required  pursuant  to  the  terms  hereof.

          (b)  If  this  Warrant  shall have been exercised in part, the Company
     shall,  at  the  time  of  delivery  of  the  certificate  or  certificates
     representing Warrant Shares, deliver to Holder a new Warrant evidencing the
     rights  of  Holder to purchase the unpurchased Warrant Shares called for by
     this  Warrant,  which  new Warrant shall in all other respects be identical
     with  this  Warrant.

          (c)  The  Holder  shall  not have the right to exercise any portion of
     this  Warrant,  pursuant  to  Section 3(a) or otherwise, to the extent that
     after  giving  effect to such issuance after exercise, the Holder (together
     with  the  Holder's  affiliates),  as set forth on the applicable Notice of
     Exercise, would beneficially own in excess of 9.99% of the number of shares
     of  the  Common  Stock  outstanding immediately after giving effect to such
     issuance.  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 exercise of this
     Warrant  with  respect to which the determination of such sentence is being
     made, but shall exclude the number of shares of Common Stock which would be
     issuable  upon  (A) exercise of the remaining, nonexercised portion of this
     Warrant  beneficially  owned by the Holder or any of its affiliates and (B)
     exercise  or  conversion  of the unexercised or nonconverted portion of any
     other  securities  of the Company (including, without limitation, any other
     Warrants  or  the Preferred Stock) subject to a limitation on conversion or
     exercise analogous to the limitation contained herein beneficially owned by
     the  Holder  or any of its affiliates. Except as set forth in the preceding
     sentence,  for purposes of this Section 3(c), beneficial ownership shall be
     calculated  in  accordance with Section 13(d) of the Exchange Act, it being
     acknowledge  by  Holder that the Company is not representing to Holder that
     such  calculation  is  in compliance with Section 13(d) of the Exchange Act
     and  Holder is solely responsible for any schedules required to be filed in
     accordance  therewith.  To the extent that the limitation contained in this
     Section  3(c)  applies,  the  determination  of  whether  this  Warrant  is
     exercisable  (in  relation  to other securities owned by the Holder) and of
     which  a  portion  of  this  Warrant  is  exercisable  shall be in the sole
     discretion of such Holder, and the submission of a Notice of Exercise shall
     be  deemed  to  be  such  Holder's determination of whether this Warrant is
     exercisable  (in  relation to other securities owned by such Holder) and of
     which  portion of this Warrant is exercisable, in each case subject to such
     aggregate  percentage  limitation, and the Company shall have no obligation
     to  verify  or  confirm the accuracy of such determination. For purposes of
     this  Section  3(c),  in  determining  the  number of outstanding shares of
     Common  Stock,  the  Holder may rely on the number of outstanding shares of
     Common  Stock  as  reflected  in (x) the Company's most recent Form 10-Q or
     Form 10-K, as the case may be, (y) a more recent public announcement by the
     Company  or  (z)  any other 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 the 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
     Warrant,  by  the  Holder or its affiliates since the date as of which such
     number  of  outstanding  shares of Common Stock was reported. The foregoing
     limitation may be waived by the Holder upon not less than 61 calendar days'
     prior  written  notice  to  the  Company.

          (d)  If  at  any time after one year from the date of issuance of this
     Warrant there is no effective Registration Statement registering the resale
     of  the Warrant Shares by the Holder, this Warrant may also be exercised at
     such  time  by  means of a "cashless exercise" in which the Holder shall be
     entitled to receive a certificate for the number of Warrant Shares equal to
     the  quotient  obtained  by  dividing  [(A-B)  (X)]  by  (A),  where:

          (A)  =  the  VWAP on the Trading Day immediately preceding the date of
                  such  election;

          (B)  =  the  Exercise  Price  of  this  Warrant,  as  adjusted;  and

          (X)  =  the  number  of  Warrant Shares issuable upon exercise of this
                  Warrant  in accordance with the terms of this Warrant by means
                  Of  a  cash  exercise  rather  than  a  cashless  exercise.

     4.  No  Fractional  Shares  or  Scrip.  No  fractional  shares  or  scrip
         ---------------------------------
representing  fractional  shares  shall  be  issued  upon  the  exercise of this
Warrant.  As to any fraction of a share which Holder would otherwise be entitled
to  purchase  upon  such  exercise,  the  Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the  Exercise  Price.

     5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
        ---------------------------
shall  be  made  without  charge  to the Holder for any issue or transfer tax or
other  incidental expense in respect of the issuance of such certificate, all of
which  taxes  and  expenses  shall be paid by the Company, and such certificates
shall  be  issued  in  the name of the Holder or in such name or names as may be
directed  by  the  Holder; provided, however, that in the event certificates for
                           --------  -------
Warrant  Shares  are  to  be issued in a name other than the name of the Holder,
this  Warrant  when  surrendered  for  exercise  shall  be  accompanied  by  the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for  any  transfer  tax  incidental  thereto.

     6.  Closing  of  Books. The Company will not close its stockholder books or
         ------------------
records  in  any  manner  which  prevents  the  timely exercise of this Warrant,
pursuant  to  the  terms  hereof.

     7.  Transfer,  Division  and  Combination.
         -------------------------------------

          (a)  Subject to compliance with any applicable securities laws and the
     conditions set forth in Sections 1 and 7(e) hereof and to the provisions of
     Section  4.1  of  the  Purchase  Agreement,  this  Warrant  and  all rights
     hereunder  are  transferable,  in  whole or in part, upon surrender of this
     Warrant  at  the  principal  office of the Company, together with a written
     assignment  of  this Warrant substantially in the form attached hereto duly
     executed by the Holder or its agent or attorney and funds sufficient to pay
     any  transfer  taxes  payable  upon  the making of such transfer. Upon such
     surrender  and,  if  required,  such payment, the Company shall execute and
     deliver  a new Warrant or Warrants in the name of the assignee or assignees
     and  in  the  denomination or denominations specified in such instrument of
     assignment,  and  shall  issue to the assignor a new Warrant evidencing the
     portion of this Warrant not so assigned, and this Warrant shall promptly be
     cancelled.  A  Warrant,  if  properly  assigned,  may be exercised by a new
     holder  for  the  purchase  of  Warrant Shares without having a new Warrant
     issued.

          (b)  This  Warrant may be divided or combined with other Warrants upon
     presentation hereof at the aforesaid office of the Company, together with a
     written notice specifying the names and denominations in which new Warrants
     are to be issued, signed by the Holder or its agent or attorney. Subject to
     compliance  with  Section 7(a), as to any transfer which may be involved in
     such  division  or combination, the Company shall execute and deliver a new
     Warrant  or  Warrants in exchange for the Warrant or Warrants to be divided
     or  combined  in  accordance  with  such  notice.

          (c)  The  Company  shall prepare, issue and deliver at its own expense
     (other  than transfer taxes) the new Warrant or Warrants under this Section
     7.

          (d) The Company agrees to maintain, at its aforesaid office, books for
     the  registration  and  the  registration  of  transfer  of  the  Warrants.

          (e)  If,  at  the  time of the surrender of this Warrant in connection
     with  any  transfer of this Warrant, the transfer of this Warrant shall not
     be  registered  pursuant  to  an effective registration statement under the
     Securities  Act and under applicable state securities or blue sky laws, the
     Company  may require, as a condition of allowing such transfer (i) that the
     Holder  or  transferee  of this Warrant, as the case may be, furnish to the
     Company  a  written  opinion  of  counsel  (which opinion shall be in form,
     substance  and  scope  customary  for  opinions  of  counsel  in comparable
     transactions)  to  the  effect  that  such  transfer  may  be  made without
     registration under the Securities Act and under applicable state securities
     or blue sky laws, (ii) that the holder or transferee execute and deliver to
     the  Company  an  investment letter in form and substance acceptable to the
     Company  and  (iii)  that  the  transferee  be  an "accredited investor" as
     defined  in  Rule  501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
     under  the  Securities Act or a qualified institutional buyer as defined in
     Rule  144A(a)  under  the  Securities  Act.

     8.  No  Rights  as  Shareholder  until  Exercise.  This  Warrant  does  not
          --------------------------------------------
entitle  the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment  of  the  aggregate Exercise Price (or by means of a cashless exercise),
the  Warrant  Shares  so  purchased  shall be and be deemed to be issued to such
Holder  as  the  record  owner of such shares as of the close of business on the
later  of  the  date  of  such  surrender  or  payment.

     9.  Loss,  Theft,  Destruction  or  Mutilation  of  Warrant.  The  Company
          ------------------------------------------------------
covenants  that  upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate  relating  to  the  Warrant  Shares,  and  in case of loss, theft or
destruction,  of  indemnity or security reasonably satisfactory to it (which, in
the  case  of  the Warrant, shall not include the posting of any bond), and upon
surrender  and  cancellation of such Warrant or stock certificate, if mutilated,
the  Company  will  make  and deliver a new Warrant or stock certificate of like
tenor  and  dated  as  of  such  cancellation,  in lieu of such Warrant or stock
certificate.

     10. 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 be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal  holiday.

     11.  Adjustments  of  Exercise  Price  and  Number  of  Warrant  Shares.
          -------------------------------------------------------------------

          (a)  Stock  Splits, etc. The number and kind of securities purchasable
               -------------------
     upon  the  exercise of this Warrant and the Exercise Price shall be subject
     to adjustment from time to time upon the happening of any of the following.
     In  case  the Company shall (i) pay a dividend in shares of Common Stock or
     make a distribution in shares of Common Stock to holders of its outstanding
     Common  Stock, (ii) subdivide its outstanding shares of Common Stock into a
     greater  number  of  shares, (iii) combine its outstanding shares of Common
     Stock  into  a  smaller number of shares of Common Stock, or (iv) issue any
     shares of its capital stock in a reclassification of the Common Stock, then
     the  number  of  Warrant  Shares  purchasable upon exercise of this Warrant
     immediately  prior  thereto  shall  be adjusted so that the Holder shall be
     entitled  to  receive  the  kind  and  number  of  Warrant  Shares or other
     securities  of  the Company which it would have owned or have been entitled
     to  receive  had  such Warrant been exercised in advance thereof. Upon each
     such  adjustment  of  the  kind  and  number  of  Warrant  Shares  or other
     securities of the Company which are purchasable hereunder, the Holder shall
     thereafter  be  entitled  to purchase the number of Warrant Shares or other
     securities  resulting from such adjustment at an Exercise Price per Warrant
     Share  or  other  security  obtained  by  multiplying the Exercise Price in
     effect immediately prior to such adjustment by the number of Warrant Shares
     purchasable  pursuant  hereto  immediately  prior  to  such  adjustment and
     dividing by the number of Warrant Shares or other securities of the Company
     that  are purchasable pursuant hereto immediately thereafter. An adjustment
     made  pursuant  to  this paragraph shall become effective immediately after
     the  effective  date  of such event retroactive to the record date, if any,
     for  such  event.

          (b) Anti-Dilution Provisions. During the Exercise Period, the Exercise
              ------------------------
     Price  shall be subject to adjustment from time to time as provided in this
     Section  11(b).  In  the event that any adjustment of the Exercise Price as
     required  herein results in a fraction of a cent, such Exercise Price shall
     be  rounded  up  or  down  to  the  nearest  cent.

               (i)  Adjustment  of  Exercise  Price. If and whenever the Company
                    -------------------------------
          issues  or  sells,  or  in accordance with Section 11(b)(ii) hereof is
          deemed  to  have  issued  or  sold,  any shares of Common Stock for an
          effective consideration per share of less than the then Exercise Price
          or  for no consideration (such lower price, the "Base Share Price" and
          such  issuances  collectively,  a "Dilutive Issuance"), then, (a) from
                                             -----------------
          the  Initial  Exercise Date until the 30th day following the Effective
          Date  (if  the  Registration  Statement  is unavailable for use by the
          Holder  during  such  period,  such  period shall be extended for such
          number  of unavailable days), the Exercise Price shall be reduced to a
          price  equal  to the Base Share Price and (b) after 30th day following
          the  Effective  Date  (as  extended in clause (a) above), the Exercise
          Price  shall  be  reduced  by  multiplying  the  Exercise  Price  by a
          fraction,  the  numerator  of  which  is  the  number  of  shares  of
          Corporation Common Stock Outstanding immediately prior to the Dilutive
          Issuance  plus  the number of shares of Corporation Common Stock which
          the  offering  price  for such Dilutive Issuance would purchase at the
          Exercise  Price,  and the denominator of which shall be the sum of the
          number  of  shares of Corporation Common Stock Outstanding immediately
          prior  to  the  Dilutive  Issuance  plus  the  number  of  shares  of
          Corporation  Common Stock so issued or issuable in connection with the
          Dilutive  Issuance.  Such  adjustment shall be made whenever shares of
          Common Stock or Common Stock Equivalents are issued. In no event shall
          the  Exercise Price be reduced to a price below $1.00 (as adjusted for
          any  stock splits, reverse splits and similar capital events after the
          issuance  date  of  this  Warrant.

               (ii)  Effect on Exercise Price of Certain Events. For purposes of
                     ------------------------------------------
          determining  the  adjusted  Exercise Price under Section 11(b) hereof,
          the  following  will  be  applicable:

                    (A)  Issuance  of  Rights  or Options. If the Company in any
                         --------------------------------
               manner  issues or grants any warrants, rights or options, whether
               or  not  immediately exercisable, to subscribe for or to purchase
               Capital  Shares  or  Capital  Shares  Equivalents (such warrants,
               rights  and  options to purchase Capital Shares or Capital Shares
               Equivalents  are  hereinafter  referred  to as "Options") and the
                                                               -------
               effective price per share for which Common Stock is issuable upon
               the  exercise  of  such  Options  is less than the Exercise Price
               ("Below  Base  Price  Options"), then the maximum total number of
                 ---------------------------
               shares  of  Common  Stock  issuable upon the exercise of all such
               Below  Base  Price Options (assuming full exercise, conversion or
               exchange  of  Capital Shares Equivalents, if applicable) will, as
               of  the  date  of  the issuance or grant of such Below Base Price
               Options,  be deemed to be outstanding and to have been issued and
               sold  by  the  Company  for  such price per share and the maximum
               consideration payable to the Company upon such exercise (assuming
               full  exercise,  conversion  or  exchange  of  Capital  Shares
               Equivalents,  if applicable) will be deemed to have been received
               by  the  Company.  For  purposes  of  the preceding sentence, the
               "effective  price  per  share  for which Common Stock is issuable
               upon the exercise of such Below Base Price Options" is determined
               by  dividing (i) the total amount, if any, received or receivable
               by  the  Company as consideration for the issuance or granting of
               all  such  Below  Base  Price Options, plus the minimum aggregate
               amount  of  additional  consideration,  if  any,  payable  to the
               Company  upon  the exercise of all such Below Base Price Options,
               plus, in the case of Capital Shares Equivalents issuable upon the
               exercise  of such Below Base Price Options, the minimum aggregate
               amount  of  additional  consideration  payable upon the exercise,
               conversion  or  exchange  thereof at the time such Capital Shares
               Equivalents  first  become  exercisable,  convertible  or
               exchangeable,  by  (ii)  the  maximum  total  number of shares of
               Common  Stock  issuable  upon the exercise of all such Below Base
               Price  Options  (assuming  full  conversion  of  Capital  Shares
               Equivalents,  if  applicable).  No  further  adjustment  to  the
               Exercise  Price  will  be  made  upon the actual issuance of such
               Common  Stock  upon the exercise of such Below Base Price Options
               or  upon  the  exercise, conversion or exchange of Capital Shares
               Equivalents  issuable  upon  exercise  of  such  Below Base Price
               Options.

                    (B)  Issuance  of Capital Shares Equivalents. If the Company
                         ---------------------------------------
               in  any  manner  issues  or sells any Capital Shares Equivalents,
               whether or not immediately convertible (other than where the same
               are  issuable  upon  the  exercise  of Options) and the effective
               price  per  share  for  which  Common Stock is issuable upon such
               exercise, conversion or exchange is less than the Exercise Price,
               then  the maximum total number of shares of Common Stock issuable
               upon  the  exercise,  conversion  or exchange of all such Capital
               Shares  Equivalents  will, as of the date of the issuance of such
               Capital  Shares  Equivalents,  be deemed to be outstanding and to
               have been issued and sold by the Company for such price per share
               and  the  maximum  consideration payable to the Company upon such
               exercise  (assuming  full  exercise,  conversion  or  exchange of
               Capital Shares Equivalents, if applicable) will be deemed to have
               been  received  by the Company. For the purposes of the preceding
               sentence,  the  "effective price per share for which Common Stock
               is  issuable  upon  such  exercise,  conversion  or  exchange" is
               determined  by dividing (i) the total amount, if any, received or
               receivable  by  the  Company as consideration for the issuance or
               sale  of  all  such  Capital Shares Equivalents, plus the minimum
               aggregate  amount of additional consideration, if any, payable to
               the  Company upon the exercise, conversion or exchange thereof at
               the  time  such  Capital  Shares  Equivalents  first  become
               exercisable,  convertible  or  exchangeable,  by (ii) the maximum
               total  number  of  shares  of  Common  Stock  issuable  upon  the
               exercise,  conversion  or  exchange  of  all  such Capital Shares
               Equivalents.  No further adjustment to the Exercise Price will be
               made upon the actual issuance of such Common Stock upon exercise,
               conversion  or  exchange  of  such  Capital  Shares  Equivalents.

                    (C) Change in Option Price or Conversion Rate. If there is a
                        -----------------------------------------
               change  at any time in (i) the amount of additional consideration
               payable to the Company upon the exercise of any Options; (ii) the
               amount  of  additional  consideration,  if  any,  payable  to the
               Company  upon the exercise, conversion or exchange of any Capital
               Shares Equivalents; or (iii) the rate at which any Capital Shares
               Equivalents are convertible into or exchangeable for Common Stock
               (in  each  such case, other than under or by reason of provisions
               designed  to  protect  against  dilution),  the Exercise Price in
               effect  at  the  time  of  such  change will be readjusted to the
               Exercise  Price  which would have been in effect at such time had
               such  Options  or  Capital  Shares  Equivalents still outstanding
               provided  for  such  changed  additional consideration or changed
               conversion  rate,  as  the  case  may  be,  at the time initially
               granted,  issued  or  sold.

                    (D)  Calculation  of  Consideration  Received. If any Common
                         ----------------------------------------
               Stock,  Options or Capital Shares Equivalents are issued, granted
               or  sold  for  cash,  the  consideration  received  therefor  for
               purposes  of  this  Warrant  will  be  the amount received by the
               Company  therefor,  before  deduction  of reasonable commissions,
               underwriting discounts or allowances or other reasonable expenses
               paid or incurred by the Company in connection with such issuance,
               grant  or  sale.  In  case  any  Common Stock, Options or Capital
               Shares Equivalents are issued or sold for a consideration part or
               all  of  which  shall  be  other  than  cash,  the  amount of the
               consideration other than cash received by the Company will be the
               fair  market  value  of  such  consideration,  except  where such
               consideration consists of securities, in which case the amount of
               consideration  received  by  the  Company will be the fair market
               value  (closing bid price, if traded on any market) thereof as of
               the date of receipt. In case any Common Stock, Options or Capital
               Shares  Equivalents  are  issued in connection with any merger or
               consolidation  in which the Company is the surviving corporation,
               the  amount  of  consideration  therefor will be deemed to be the
               fair  market value of such portion of the net assets and business
               of  the  non-surviving  corporation  as  is  attributable to such
               Common  Stock, Options or Capital Shares Equivalents, as the case
               may  be.  The  fair  market value of any consideration other than
               cash  or  securities  will  be  determined  in  good  faith by an
               investment  banker  or  other  appropriate  expert  of  national
               reputation  selected  by the Company and reasonably acceptable to
               the  holder  hereof, with the costs of such appraisal to be borne
               by  the  Company.

                    (E)  Exceptions  to  Adjustment  of  Exercise  Price.
                         -----------------------------------------------
               Notwithstanding  the  foregoing, no adjustment will be made under
               this  Section  11(b) in respect of (1) the granting of options to
               employees,  officers  or directors of the Company pursuant to any
               stock  option plan duly adopted by a majority of the non-employee
               members of the Board of Directors of the Company or a majority of
               the  members of a committee of non-employee directors established
               for such purpose or (2) upon the exercise of or conversion of any
               Capital  Shares  Equivalents or Options issued and outstanding on
               the  Initial Exercise Date, provided that the securities have not
               been amended since the date of the Purchase Agreement except as a
               result  of  the  Purchase  Agreement.

               (iii)  Minimum Adjustment of Exercise Price. No adjustment of the
                      ------------------------------------
          Exercise  Price  shall  be  made  in  an amount of less than 1% of the
          Exercise  Price  in  effect  at  the time such adjustment is otherwise
          required  to  be made, but any such lesser adjustment shall be carried
          forward  and  shall  be  made  at  the time and together with the next
          subsequent  adjustment which, together with any adjustments so carried
          forward,  shall  amount  to  not  less than 1% of such Exercise Price.

     12.  Reorganization,  Reclassification,  Merger,  Consolidation  or
          --------------------------------------------------------------
Disposition  of  Assets.  In  case  the  Company  shall  reorganize its capital,
-----------------------
reclassify  its  capital  stock,  consolidate  or  merge  with  or  into another
corporation  (where  the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or  sell,  transfer  or otherwise dispose of its property, assets or business to
another  corporation  and,  pursuant  to  the  terms  of  such  reorganization,
reclassification,  merger,  consolidation  or  disposition  of assets, shares of
common  stock  of the successor or acquiring corporation, or any cash, shares of
stock  or  other  securities  or  property  of  any nature whatsoever (including
warrants  or other subscription or purchase rights) in addition to or in lieu of
common  stock  of the successor or acquiring corporation ("Other Property"), are
                                                           --------------
to  be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive, at the option of the
Holder  upon  exercise  of this Warrant, the number of shares of Common Stock of
the successor or acquiring corporation or of the Company, if it is the surviving
corporation,  and  Other  Property  receivable  upon  or  as  a  result  of such
reorganization, reclassification, merger, consolidation or disposition of assets
by  a  Holder  of the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to such event. In case of any such reorganization,
reclassification,  merger, consolidation or disposition of assets, the successor
or  acquiring corporation (if other than the Company) shall expressly assume the
due  and  punctual  observance  and  performance  of each and every covenant and
condition  of  this  Warrant to be performed and observed by the Company and all
the  obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors  of the Company) in order to provide for adjustments of Warrant Shares
for  which  this  Warrant  is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 12.  For purposes of
this  Section 12, "common stock of the successor or acquiring corporation" shall
include  stock  of  such  corporation  of any class which is not preferred as to
dividends  or assets over any other class of stock of such corporation and which
is  not  subject  to  redemption  and  shall  also  include  any  evidences  of
indebtedness,  shares of stock or other securities which are convertible into or
exchangeable  for  any  such  stock, either immediately or upon the arrival of a
specified  date  or the happening of a specified event and any warrants or other
rights to subscribe for or purchase any such stock.  The foregoing provisions of
this  Section  12  shall  similarly  apply  to  successive  reorganizations,
reclassifications,  mergers,  consolidations  or  disposition  of  assets.

     13.  Call  Provision.  Subject  to  the  provisions  of this Section 13, if
          ---------------
after  the  Effective Date the volume weighted average price of the Common Stock
as  reported  by Bloomberg Financial LP ("VWAP") for each of fifteen consecutive
                                          ----
Trading  Days  (the  "Measurement  Price", which period shall not have commenced
                      ------------------
until  after  the  Effective  Date) exceeds $6.00 (subject to adjustment for any
stock splits, reverse stock splits and similar capital events after the issuance
date  of this Warrant) (the "Threshold Price"), then the Company may, within ten
                             ---------------
Trading Days of such period, call for cancellation of all or any portion of this
Warrant for which a Notice of Exercise has not yet been delivered (such right, a
"Call");  provided,  however,  that  effective upon delivery of such notice of a
 ----     --------   -------
Call,  the  Holder shall have the right to exercise this Warrant for all Warrant
Shares  notwithstanding the vesting schedule set forth in the first paragraph of
this Warrant.  To exercise this right, the Company must deliver to the Holder an
irrevocable  written notice (a "Call Notice"), indicating therein the portion of
                                -----------
unexercised  portion  of  this  Warrant  to  which  such notice applies.  If the
conditions  set forth below for such Call are satisfied from the period from the
date  of the Call Notice through and including the Call Date (as defined below),
then  any portion of this Warrant subject to such Call Notice for which a Notice
of  Exercise  shall  not  have been received from and after the date of the Call
Notice  will be cancelled at 6:30 p.m. (New York City time) on the tenth Trading
Day  after  the  date  the Call Notice is received by the Holder (such date, the
"Call  Date").  Any unexercised portion of this Warrant to which the Call Notice
 ----------
does  not  pertain  will  be  unaffected  by  such  Call Notice.  In furtherance
thereof,  the  Company  covenants  and  agrees that it will honor all Notices of
Exercise  with  respect  to  Warrant  Shares  subject  to a Call Notice that are
tendered  from  the  time  of delivery of the Call Notice through 6:30 p.m. (New
York  City  time)  on  the  Call Date, including, without limitation, Notices of
Exercise  which  otherwise could not be delivered by the Holder because the time
periods set forth in the preamble to this Warrant had not otherwise elapsed. For
clarity,  it  is  agreed that this entire Warrant may be exercised by the Holder
upon  receipt  of  a  Call  Notice. Notwithstanding anything to the contrary set
forth  in this Warrant, the Company may not deliver a Call Notice or require the
cancellation  of  this  Warrant (and any Call Notice will be void), unless, from
the  beginning  of the 15 consecutive Trading Days used to determine whether the
Common  Stock  has  achieved  the Threshold Price through the Call Date, (i) the
Company  shall  have  honored  in  accordance with the terms of this Warrant all
Notices  of  Exercise  delivered  by  6:30 p.m. (New York City time) on the Call
Date,  (ii)  the  Registration  Statement  shall  be effective as to all Warrant
Shares  and  the  prospectus  thereunder available for use by the Holder for the
resale  of all such Warrant Shares and (iii) the Common Stock shall be listed or
quoted  for  trading  on  the Principal Market.  The Company's right to Call the
Warrant  shall  be  exercised  ratably  among  the  Purchasers  based  on  each
Purchaser's initial purchase of Common Stock pursuant to the Purchase Agreement.

     14.  Notice  of Adjustment. Whenever the number of Warrant Shares or number
          ----------------------
or  kind  of  securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give  notice  thereof  to  the  Holder,  which  notice shall state the number of
Warrant  Shares (and other securities or property) purchasable upon the exercise
of  this  Warrant  and  the  Exercise  Price  of  such Warrant Shares (and other
securities  or  property) after such adjustment, setting forth a brief statement
of  the  facts  requiring  such  adjustment and setting forth the computation by
which  such  adjustment  was  made.

     15.  Notice  of  Corporate  Action.  If  at  any  time:
          -----------------------------

          (a) the Company shall take a record of the holders of its Common Stock
     for  the  purpose  of  entitling  them  to  receive  a  dividend  or  other
     distribution,  or  any  right to subscribe for or purchase any evidences of
     its  indebtedness, any shares of stock of any class or any other securities
     or  property,  or  to  receive  any  other  right,  or

          (b)  there  shall  be  any  capital reorganization of the Company, any
     reclassification or recapitalization of the capital stock of the Company or
     any  consolidation  or merger of the Company with, or any sale, transfer or
     other  disposition  of  all  or  substantially  all the property, assets or
     business  of  the  Company  to,  another  corporation  or,

          (c) there shall be a voluntary or involuntary dissolution, liquidation
     or  winding  up  of  the  Company;

then,  in any one or more of such cases, the Company shall give to Holder (i) at
least  20 days' prior written notice of the date on which a record date shall be
selected  for  such dividend, distribution or right or for determining rights to
vote  in  respect  of  any  such  reorganization,  reclassification,  merger,
consolidation,  sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days'  prior  written  notice  of  the date when the same shall take place. Such
notice  in  accordance with the foregoing clause also shall specify (i) the date
on  which  any  such  record  is  to  be taken for the purpose of such dividend,
distribution  or  right,  the date on which the holders of Common Stock shall be
entitled  to  any  such  dividend,  distribution  or  right,  and the amount and
character  thereof,  and  (ii)  the  date  on  which  any  such  reorganization,
reclassification,  merger,  consolidation,  sale,  transfer,  disposition,
dissolution,  liquidation  or  winding  up is to take place and the time, if any
such  time  is  to  be  fixed,  as of which the holders of Common Stock shall be
entitled  to  exchange  their  Warrant  Shares  for securities or other property
deliverable  upon such disposition, dissolution, liquidation or winding up. Each
such  written  notice  shall be sufficiently given if addressed to Holder at the
last  address  of  Holder appearing on the books of the Company and delivered in
accordance  with  Section  17(d).

     16.  Authorized  Shares.  The  Company  covenants  that  during  the period
          ------------------
the  Warrant  is  outstanding,  it will reserve from its authorized and unissued
Common  Stock  a  sufficient number of shares to provide for the issuance of the
Warrant  Shares upon the exercise of any purchase rights under this Warrant. The
Company  further  covenants  that  its issuance of this Warrant shall constitute
full  authority to its officers who are charged with the duty of executing stock
certificates  to  execute  and  issue the necessary certificates for the Warrant
Shares  upon the exercise of the purchase rights under this Warrant. The Company
will  take  all  such  reasonable action as may be necessary to assure that such
Warrant  Shares  may  be  issued  as  provided  herein  without violation of any
applicable  law  or  regulation,  or of any requirements of the Principal Market
upon  which  the  Common  Stock  may  be  listed.

     Except  and  to  the  extent  as  waived or consented to by the Holder, the
Company  shall  not  by  any action, including, without limitation, amending its
certificate  of incorporation or through any reorganization, transfer of assets,
consolidation,  merger,  dissolution,  issue  or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the  terms  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  to protect the rights of Holder as set forth in this
Warrant  against  impairment.  Without limiting the generality of the foregoing,
the  Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par  value, (b) take all such action as may be necessary or appropriate in order
that  the  Company  may  validly  and legally issue fully paid and nonassessable
Warrant  Shares  upon  the  exercise  of  this Warrant, and (c) use commercially
reasonable  efforts  to  obtain  all such authorizations, exemptions or consents
from  any public regulatory body having jurisdiction thereof as may be necessary
to  enable  the  Company  to  perform  its  obligations  under  this  Warrant.

     Before  taking any action which would result in an adjustment in the number
of  Warrant  Shares  for  which  this  Warrant is exercisable or in the Exercise
Price,  the  Company shall obtain all such authorizations or exemptions thereof,
or  consents  thereto,  as  may  be necessary from any public regulatory body or
bodies  having  jurisdiction  thereof.

     17.  Miscellaneous.
          -------------

          (a) Jurisdiction. All questions concerning the construction, validity,
              ------------
     enforcement  and  interpretation  of  this  Warrant  shall be determined in
     accordance  with  the  provisions  of  the  Purchase  Agreement.

          (b)  Restrictions.  The  Holder  acknowledges  that the Warrant Shares
               ------------
     acquired  upon  the  exercise of this Warrant, if not registered, will have
     restrictions  upon  resale  imposed  by  state and federal securities laws.

          (c)  Nonwaiver  and  Expenses.  No  course  of dealing or any delay or
               ------------------------
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding all rights hereunder terminate on the Termination
     Date.  If  the  Company  willfully  and  knowingly fails to comply with any
     provision  of  this  Warrant,  which results in any material damages to the
     Holder, the Company shall pay to Holder such amounts as shall be sufficient
     to  cover  any costs and expenses including, but not limited to, reasonable
     attorneys'  fees,  including  those  of  appellate proceedings, incurred by
     Holder  in  collecting  any  amounts  due  pursuant  hereto or in otherwise
     enforcing  any  of  its  rights,  powers  or  remedies  hereunder.

          (d)  Notices.  Any  notice,  request  or  other  document  required or
               -------
     permitted  to  be  given or delivered to the Holder by the Company shall be
     delivered  in  accordance  with  the  notice  provisions  of  the  Purchase
     Agreement.

          (e)  Limitation  of  Liability. No provision hereof, in the absence of
               -------------------------
     any  affirmative  action  by  Holder  to  exercise this Warrant or purchase
     Warrant  Shares,  and  no enumeration herein of the rights or privileges of
     Holder,  shall  give rise to any liability of Holder for the purchase price
     of  any  Common  Stock  or  as  a  stockholder of the Company, whether such
     liability  is  asserted  by  the  Company  or  by creditors of the Company.

          (f)  Remedies.  Holder,  in addition to being entitled to exercise all
               --------
     rights  granted  by law, including recovery of damages, will be entitled to
     specific  performance  of its rights under this Warrant. The Company agrees
     that  monetary  damages  would  not  be  adequate compensation for any loss
     incurred  by reason of a breach by it of the provisions of this Warrant and
     hereby  agrees  to waive the defense in any action for specific performance
     that  a  remedy  at  law  would  be  adequate.

          (g)  Successors  and  Assigns.  Subject to applicable securities laws,
               ------------------------
     this Warrant and the rights and obligations evidenced hereby shall inure to
     the  benefit  of  and be binding upon the successors of the Company and the
     successors  and permitted assigns of Holder. The provisions of this Warrant
     are intended to be for the benefit of all Holders from time to time of this
     Warrant  and  shall  be enforceable by any such Holder or holder of Warrant
     Shares.

          (h)  Amendment.  This  Warrant  may  be  modified  or  amended  or the
               ---------
     provisions  hereof  waived  with the written consent of the Company and the
     Holder.

          (i)  Severability.  Wherever  possible, each provision of this Warrant
               ------------
     shall  be  interpreted  in  such  manner as to be effective and valid under
     applicable law, but if any provision of this Warrant shall be prohibited by
     or invalid under applicable law, such provision shall be ineffective to the
     extent  of  such  prohibition  or  invalidity,  without  invalidating  the
     remainder  of  such provisions or the remaining provisions of this Warrant.

          (j)  Headings.  The  headings  used  in  this  Warrant  are  for  the
               --------
     convenience  of  reference only and shall not, for any purpose, be deemed a
     part  of  this  Warrant.

                              ********************
<PAGE>

     IN  WITNESS  WHEREOF, the Company has caused this Warrant to be executed by
its  officer  thereunto  duly  authorized.

Dated:  February  ____,  2004
                                        U.S.  Energy  Corp.

                                        By:  ___________________________________
                                                    Name:
                                                    Title:

<PAGE>

                               NOTICE OF EXERCISE
To:     U.S  Energy  Corp.

     (1)  The  undersigned  hereby elects to purchase ________ Warrant Shares of
the  Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all  applicable  transfer  taxes,  if  any.

     (2)  Payment  shall  take  the  form  of  (check  applicable  box):

          [ ]  in  lawful  money  of  the  United  States;  or

          [ ] the cancellation of such number of Warrant Shares as is necessary,
          in  accordance  with  the  formula  set  forth  in subsection 3(d), to
          exercise  this  Warrant  with respect to the maximum number of Warrant
          Shares  purchasable  pursuant  to  the cashless exercise procedure set
          forth  in  subsection  3(d).

     (3)  Please  issue  a certificate or certificates representing said Warrant
Shares  in  the  name  of  the undersigned or in such other name as is specified
below:

               ----------------------------------

The  Warrant  Shares  shall  be  delivered  to  the  following:

               ----------------------------------

               ----------------------------------

               ----------------------------------

     (4)  Accredited  Investor.  The  undersigned is an "accredited investor" as
          --------------------
defined  in  Regulation  D  under  the  Securities  Act  of  1933,  as  amended.

                                        [PURCHASER]

                                        By:  -----------------------------------
                                        Name:
                                        Title:

                                        Dated:  --------------------------------

<PAGE>

                                 ASSIGNMENT FORM
                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR  VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are  hereby  assigned  to

_______________________________________________  whose  address  is

_______________________________________________________________.

_______________________________________________________________

                                   Dated:  ______________,  _______

               Holder's  Signature:     _____________________________

               Holder's  Address:     _____________________________

                              _____________________________

Signature  Guaranteed:  ___________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it
appears  on  the  face  of the Warrant, without alteration or enlargement or any
change  whatsoever, and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should  file  proper  evidence  of  authority  to  assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]