Document:

EXHIBIT 10.1

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                            THE RESEARCH WORKS, INC.
                  623 Ocean Avenue, Sea Girt, New Jersey 08750
              Telephone: (732) 682-4950 Web: www.stocksontheweb.com

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January 27, 2005

Dr. Lawrence Nash, CEO
Vista Continental Corporation
6600 West Charleston Blvd., Suite 118
Las Vegas, NV 89146

Dear Dr. Nash:

This letter agreement (the "Agreement") will confirm our understanding regarding
the engagement of THE RESEARCH WORKS, INC. ("RW"), a New Jersey corporation, to
provide equity research services to VISTA CONTINENTAL CORPORATION ("Client") a
Delaware corporation.

Whereas RW is an independent research firm that provides research services with
respect to the securities of its clients, and whereas Client has publicly traded
securities and desires RW to provide equity research services with respect to
its common stock: now, therefore, in consideration of the mutual promises and
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is hereby agreed as
follows:

 1.  Term. The term of this Agreement ("Term") shall commence on the date of
     your signing of this Agreement and shall continue through the one-year
     anniversary of the release of the first RW equity research report on the
     Client ("End of the Full Term"), unless either party terminates this
     Agreement, with or without cause, at an earlier date ("Early Termination
     Date") upon delivery of written notice to the other party at the address
     set forth herein below.

 2.  RW Services. RW shall prepare an equity research report on Client
     ("Report") in substantially the same form as samples of RW's research
     reports presently displayed at RW's Web site (www.stocksontheweb.com).
     Client shall have no editorial control over the opinions expressed in the
     Report, and RW shall not supply to Client a draft copy of the Report.

     RW shall complete and post a copy of the finished Report at its Web site
     within six (6) weeks of the date on which RW receives the payment for RW
     services from the Client, and RW shall update the Report on its Web site on
     approximately a bimonthly basis for the remainder of the Term. Client shall
     notify RW in writing prior to the filing of any registration statement for
     its shares, and again upon the effectiveness of such registration, and RW
     shall suspend the updating of the Report during the period commencing on

Initials: WJR ______ ; Client ______.

<PAGE>

     date of written notification of a pending registration and ending on the
     day following the effective date of such registration.

     Client may make suggestions at any time for changes regarding the factual
     content of the Report, but RW is under no obligation to accept such
     proposed changes, and RW retains exclusive control over the opinions
     expressed in the Report.

     Following the initial posting of the Report on its Web site, RW shall print
     and distribute the Report at its own expense to individual and
     institutional investors whom RW believes have an interest in
     small-capitalization stocks. The date of such printing and distribution
     shall be at RW's sole discretion. RW shall also mail 100 copies of the
     Report to Client, and Client shall have permission to duplicate the Report
     at its own expense or to purchase additional original copies from RW for a
     nominal fee.

3.   Fee. In consideration of RW's services, the Client shall pay to RW a fee
     ("Fee") consisting of one million (1,000,000) shares of Client's common
     stock. This Fee is due and payable upon the date on which you sign this
     Agreement, and RW shall be under no obligation to issue any Reports until
     it has received the Fee. The shares shall be issued in certificate form to
     The Research Works, Inc. (c/o William J. Ritger, 623 Ocean Avenue, Sea
     Girt, NJ 08750; tax # 22-3173901).

     RW acknowledges that the common shares issued pursuant to this Agreement
     (a) have not been registered under the Securities Act of 1933, as amended
     (the "Act"), (b) cannot be offered or sold except pursuant to a
     registration statement under the Act or an exemption from registration
     under the Act, and (c) are being acquired for investment and not with a
     view to the distribution thereof. RW represents that it is an "accredited
     investor" as such term is defined by Rule 501(a) of Regulation D and also
     acknowledges that its officers and directors are capable of evaluating the
     merits and risks of an investment in Client's common shares.

     Should the Client terminate this Agreement prior to the End of the Full
     Term for any reason other than RW's failure to perform in accordance with
     the terms set forth in this Agreement, then no portion of the Fee shall be
     refunded to the Client, except, however, that the Client may cancel this
     Agreement without penalty within five (5) business days of Client's
     entering into this Agreement, provided that the Client provides RW with
     written notice of such cancellation in accordance with the terms of
     Paragraph 6 of this Agreement.

     Should the Client terminate this Agreement prior to the End of the Full
     Term for RW's failure to perform in accordance with the terms set forth in
     this Agreement, then a percentage of the Fee shall be refunded to the
     Client; this percentage is the product of 50% times the result of the
     division of the number of days from the Early Termination Date until the
     End of the Full Term by the number of days from the commencement of the
     Term until the End of the Full Term.

Initials: WJR ______ ; Client ______.

                                       2
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     Notwithstanding the foregoing, Client shall recover the entire Fee from RW
     if Client terminates this Agreement based on RW's failure to release the
     initial Report in accordance with the time and manner mandated by Paragraph
     2.

     Should RW terminate this Agreement prior to the End of the Full Term, then
     a percentage of the Fee shall be refunded to the Client; this percentage
     shall be the product of 50% times the result of the division of the number
     of days from the Early Termination Date until the End of the Full Term by
     the number of days from the commencement of the Term until the End of the
     Full Term.

     Notwithstanding the foregoing, RW shall refund the entire Fee to Client if
     RW terminates this Agreement prior to the release of the initial Report for
     any reason other than Client's failure to perform in accordance with the
     terms set forth in this Agreement.

4.   Client's Representations and Covenants.  Client represents and covenants
     that:

     (a) it will notify RW in writing prior to the filing of a registration
     statement of any of its securities and it will not use the Report in
     connection with any offering of securities without the prior written
     consent of RW, and Client shall again notify RW upon the effectiveness of
     such registration statement;

     (b) it and its principals will keep confidential their knowledge of the
     pending release of the Report;

     (c) it will distribute the Report only in its entirety and in conformity
     with all securities laws;

     (d) it will cease any distribution of the Report when facts or management's
     expectations are materially different from those presented or estimated in
     such Report;

     (e) it has received a copy of RW's brochure and Part II of RW's ADV
     application, both of which are available for viewing at RW's web site
     (www.stocksontheweb.com); and

     (f) it will indemnify and hold RW and its officers, employees and
     independent contractors harmless from and against any loss, damage,
     liability, or expense (including reasonable attorneys' fees and other costs
     of litigation, regardless of outcome) arising out of or in connection with
     (i) any breach of the representations and covenants made by Client in this
     Paragraph 4, (ii) false or misleading information provided to RW by Client,
     or (iii) claims relating to the purchase and/or sale of Clients' securities
     arising from RW's relationship with Client. In any action where Client's
     indemnity applies, RW shall be entitled to its own separate counsel at
     Client's expense. Neither termination nor completion of this Agreement

Initials: WJR ______ ; Client ______.

                                       3
<PAGE>

     shall affect these indemnification provisions, which shall survive any such
     termination or completion and remain operative and in full force and
     effect.

5.   Solicitor's fee. Client acknowledges that RW shall pay to Hunter Wise
     Securities, LLC a solicitor's fee equal to $12,000.

6.   Impaired provision. If any provision of this Agreement is held invalid,
     illegal or unenforceable in any respect (an "Impaired Provision"),

     (a) such Impaired Provision shall be interpreted in such a manner as to
     preserve, to the maximum extent possible, the intent of the parties,

     (b) the validity, legality and enforceability of the remaining provisions
     shall not in any way be affected or impaired thereby, and

     (c) such decision shall not affect the validity, legality or enforceability
     of such Impaired Provision under other circumstances. The parties agree to
     negotiate in good faith and agree upon a provision to substitute for the
     Impaired Provision in the circumstances in which the Impaired Provision is
     invalid, illegal or unenforceable.

7.   Severability of Provisions. If any provision of this Agreement shall be
     declared by a court of competent jurisdiction to be invalid, illegal or
     incapable of being enforced in whole or in part, the remaining conditions
     and provisions or portions thereof shall nevertheless remain in full force
     and effect and enforceable to the extent they are valid, legal and
     enforceable, and no provision shall be deemed dependent upon any other
     covenant or provision unless so expressed herein.

8.   Non-Waiver. The failure of any party to insist upon the strict performance
     of any of the terms, conditions and provisions of this Agreement shall not
     be construed as a waiver or relinquishment of future compliance therewith,
     and said terms, conditions and provisions shall remain in full force and
     effect. No waiver of any term or condition of this Agreement on the part of
     any party shall be effective for any purpose whatsoever unless such waiver
     is in writing and signed by such party.

9.   Notices. Any notice or other communication under this Agreement shall be in
     writing and shall be deemed to have been duly given: (a) upon facsimile
     transmission (with written transmission confirmation report) at the number
     designated below; (b) when delivered personally against receipt therefore;
     (c) one day after being sent by Federal Express or similar overnight
     delivery; or (d) five (5) business days after being mailed registered or
     certified mail, postage prepaid. The addresses for such communications
     shall be as set forth below or to such other address as a party shall give
     by notice hereunder to the other party to this Agreement.

Initials: WJR ______ ; Client ______.

                                       4
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         If to Client:              Vista Continental Corporation
                                    6600 West Charleston Blvd., Suite 118
                                    Las Vegas, NV 89146
                                    Attention: Lawrence Nash, CEO

              If to RW:             The Research Works, Inc.
                                    623 Ocean Avenue, Sea Girt, NJ 08750
                                    Attention: William Ritger, President

10.  Governing Law / Arbitration. The terms of this Agreement will be governed
     by and interpreted in accordance with the internal laws of the State of
     ArizonaNew Jersey, without regard to the principles of conflict of laws.
     Any controversy, dispute or claim between the parties relating to this
     Agreement shall be resolved by binding arbitration in MaricopaMonmouth
     County, New Jersey, in accordance with the rules of the American
     Arbitration Association. Prior to the selection of the arbitrators of the
     binding arbitration, the parties shall first attempt non-binding mediation
     before a mediator selected by said Association. Each party shall bear its
     own costs relating to such mediation, including attorney's fees and
     expenses. The parties agree that in the event that any controversy, dispute
     or claim between the parties relating to this Agreement is resolved by
     binding arbitration, the prevailing party, if any, as determined by the
     arbitrator's award, shall be entitled to reimbursement of all expenses
     incurred in the arbitration including reasonable attorneys' fees, provided
     that in no event shall the arbitrator have the authority to award punitive
     damages. Judgment on the award may be entered in any court having
     jurisdiction over the award.

11.  Integration. This Agreement sets forth the entire agreement between the
     parties with regard to the subject matter hereof. All prior agreements,
     covenants, representations, and warranties, expressed or implied, oral or
     written, with respect to the subject matter hereof, are contained herein.
     All prior or contemporaneous conversations, possible and alleged
     agreements, representations, covenants, and warranties, with respect to the
     subject matter hereof, are waived, merged, and superseded hereby. This is
     an integrated agreement.

12.  Entire agreement. This Agreement sets forth the entire understanding of the
     parties hereto with respect to the subject matter hereof and shall not be
     modified, except by a written document signed by the parties.

13.  Paragraph headings. The paragraph headings used in this Agreement are
     included solely for convenience and shall not affect or be used in
     connection with the interpretation of this Agreement.

14.  Counterparts. This Agreement may be executed in counterpart signatures,
     each of which shall be deemed an original, but all of which, when taken
     together, shall constitute one and the same instrument, it being understood
     that both parties need not sign the same counterpart. In the event that any

Initials: WJR ______ ; Client ______.

                                       5
<PAGE>

     signature is delivered by facsimile transmission, such signature shall
     create a valid and binding obligation of the party executing (or on whose
     behalf such signature is executed) the same with the same force and effect
     as if such facsimile signature page were an original thereof.

Please confirm your agreement with the foregoing by signing and returning one
copy of this letter to the undersigned whereupon this letter shall become a
binding Agreement as of the day and year first written above. The offer to enter
into this Agreement shall expire 21 days from the date of this letter.

Very truly yours,

THE RESEARCH WORKS, INC.

By:    /s/ William J. Ritger
       ----------------------------------------------
       William J. Ritger
       President

ACCEPTED AND AGREED:

VISTA CONTINENTAL CORPORATION

By:    /s/ Dr. Lawrence Nash
       ----------------------------------------------
       Dr. Lawrence Nash
       CEO

Reminder: Please remember to initial each page.
--------

Initials: WJR ______ ; Client ______.

                                       6NEITHER 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 TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN  SECURED  BY SUCH  SECURITIES,  BUT ANY  PLEDGEE  SHALL BE  SUBJECT  TO THE
REQUIREMENTS SET FORTH IN THIS WARRANT AS A HOLDER.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 250,000 Shares of Common Stock of

                          Altair Nanotechnologies Inc.

Warrant No. 1

                  THIS COMMON STOCK PURCHASE  WARRANT  CERTIFIES that, for value
received,  Maxim  Group  LLC (the  "Holder"),  is  entitled,  upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after February 15, 2005 (the "Initial  Exercise  Date") and on
or prior to the close of  business  on the  fourth  anniversary  of the  Initial
Exercise Date (the "Termination Date") but not thereafter,  to subscribe for and
purchase from Altair Nanotechnologies Inc., a corporation incorporated in Canada
(the "Company"), up to Two Hundred Fifty Thousand (250,000) shares (the "Warrant
Shares") of Common  Stock,  of the Company  (the "Common  Stock").  The purchase
price of one share of Common  Stock (the  "Exercise  Price")  under this Warrant
shall be $5.265, subject to 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 14,
2005, between the Company and the Purchasers signatory thereto.

                                       1
<PAGE>
         1.  Title to  Warrant.  Prior to the  Termination  Date and  subject to
compliance  with  applicable  laws and Sections 7 and 15 of this  Warrant,  this
Warrant and all rights hereunder are  transferable,  in whole or in part (but if
in part, not in amounts less than the right to purchase 10,000 Warrant  Shares),
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,  provided that any such transferee is an
"accredited investor" as defined in Rule 501(a) promulgated under the Securities
Act. Prior to any transfer,  the transferee  shall sign an investment  letter in
form and  substance  reasonably  satisfactory  to the  Company.  Notwithstanding
anything to the contrary  contained herein, no Holder may assign this Warrant or
any of its rights  hereunder to a  competitor  or  potential  competitor  of the
Company.

         2. Authorization of Warrant Shares. The Company represents and warrants
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 or income taxes, if any, payable by the Holder).

         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 and on or before the Termination  Date by delivery to the
         Company of a duly executed  original or facsimile copy of the Notice of
         Exercise  Form  annexed  hereto (or such other  office or agency of the
         Company  as the  Company  may  designate  by notice in  writing  to the
         registered  Holder at the address of such Holder appearing on the books
         of the Company)  together with payment of the aggregate  Exercise Price
         of  the  shares  thereby  purchased  by  wire  transfer  to an  account
         designated  by the Company or cashier's  check drawn on a United States
         bank; provided, however, that within 3 Trading Days after the date such
         Notice of  Exercise  is  delivered  to the  Company,  the Holder  shall
         surrender  this  Warrant  to  the  Company.   Certificates  for  shares
         purchased  hereunder  shall be delivered to the Holder within 5 Trading
         Days  after the date on which the  Notice of  Exercise  shall have been
         delivered  by original or facsimile  copy and payment of the  aggregate
         Exercise  Price  shall have been  received  by the Company as set forth
         above ("Warrant Share Delivery Date");  provided,  however, that in the
         event the Warrant is not  surrendered by the Holder and received by the
         Company  within 4 Trading  Days  after the date on which the  aggregate
         exercise price shall have been paid and the Notice of Exercise shall be
         delivered by facsimile  copy,  the Warrant Share Delivery Date shall be
         extended  to the extent  such 4 Trading  Day period is  exceeded.  This
         Warrant  shall be deemed to have been  exercised on the date the Notice
         of Exercise is  delivered  to the  Company and the  aggregate  Exercise
         Price shall have been paid.  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

                                       2
<PAGE>

         deliver to the Holder a certificate or  certificates  representing  the
         Warrant  Shares  pursuant to this  Section  3(a) by the 2nd 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 on or before the Warrant  Share  Delivery  Date,  and if
         after such date 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 promptly  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 Company shall not effect any exercise of this Warrant,
         and 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 4.99% 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 or any

                                       3
<PAGE>

         other warrant or Capital Shares  Equivalents  beneficially owned by the
         Holder or any of its  affiliates  and (B)  payment  by the  Company  in
         shares  of  Common  Stock of the  principal  of, or  interest  on,  any
         debentures held by the Holder or its affiliates,  and (ii) dividends on
         any  securities,  or  exercise  or  conversion  of the  unexercised  or
         nonconverted  portion of any other securities of the Company 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. (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,  together  with  any  of its
         Affiliates)  and of which 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, together with any of its Affiliates) and of which
         portion of this  Warrant is  exercisable,  in each case subject to such
         aggregate  percentage  limitation.)  To  ensure  compliance  with  this
         restriction, the Holder will be deemed to represent to the Company each
         time it delivers a Notice of Exercise  that such Notice of Exercise has
         not  violated  the  restrictions  set forth in this  paragraph  and the
         Company  shall have no  obligation to verify or confirm the accuracy of
         such  determination.  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 the
         most recent of the following: (x) the Company's Form 10-Q or Form 10-K,
         as the case may be, (y) a 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  provisions  of this  Section  3(c) may be waived by the
         Holder  upon,  at the  election of the  Holder,  not less than 61 days'
         prior notice to the Company,  and the  provisions  of this Section 3(c)
         shall  continue to apply  until such 61st day (or such later  date,  as
         determined  by the  Holder,  as may be  specified  in  such  notice  of
         waiver).

         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

                                       4
<PAGE>

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,  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 duly authorized
         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.

                  (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 duly  authorized  agent or attorney;  provided,  however,
         that Warrants to purchase less than 10,000  Warrant  Shares need not be
         issued  (except  that on one  occasion  the holder may  request  that a
         Warrant to purchase  5,000 Warrant  Shares be issued)  unless the total
         number of Warrant Shares for which the Warrant may be exercised is less
         than 10,000 Warrant Shares (or 5,000 Warrant Shares, if applicable), in
         which case a Warrant  to  purchase  that  number of  remaining  Warrant
         Shares may be issued.  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

                                       5
<PAGE>

         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 and shall
         be  reasonably  satisfactory  to the  Company)  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)
         promulgated 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 and all applicable  taxes,  if any, 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.  The Company  shall be entitled to treat
the Holder of the  Warrant as the owner in fact  thereof  for all  purposes  and
shall not be bound to recognize  any  equitable or other claim to or interest in
such  Warrant on the part of any other  person,  and shall not be liable for any
registration or transfer of Warrants which are registered or to be registered in
the name of a  fiduciary  or the  nominee of a  fiduciary  unless  made with the
actual  knowledge that a fiduciary or nominee is committing a breach of trust in
requesting such  registration  or transfer,  or with the knowledge of such facts
that its participation therein amounts to bad faith.

         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.

                  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,  at any time  while  the  Warrant  is
         outstanding, shall (i) pay a dividend in shares of Common Stock or make
         a  distribution  in  shares  of  Common  Stock  to all  holders  of its
         outstanding  Common Stock,  (ii)  subdivide its  outstanding  shares of

                                       6
<PAGE>

         Common Stock into a greater number of shares,  (iii) combine (including
         by way of reverse stock split) 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 after such adjustment.  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.

         12.   Reorganization,   Reclassification,   Merger,   Consolidation  or
Disposition of Assets.

                  (a)  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 all or
         substantially  all of its  property,  assets  or  business  to  another
         corporation  and,  pursuant  to  the  terms  of  such   reorganization,
         reclassification,  merger,  consolidation  or  disposition  of  all  or
         substantially  all  of  its  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  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

                                       7
<PAGE>

         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.

                  (b) Notwithstanding anything to the contrary herein contained,
         in the event of a transaction  contemplated by Section 12(a) or similar
         transaction  in  which  the  surviving,   continuing,   successor,   or
         purchasing  person,  corporation or entity demands that all outstanding
         Warrants be extinguished  prior to the closing date of the contemplated
         transaction,  the Company shall give prior notice (the "Merger Notice")
         thereof to the Holders advising them of such  transaction.  The Holders
         shall have ten  calendar  days  after the date of the Merger  Notice to
         elect to (i) exercise the Warrants in the manner provided herein,  (ii)
         receive  from  the  surviving,  continuing,  successor,  or  purchasing
         corporation the same consideration receivable by a holder of the number
         of shares  of Common  Stock for  which  this  Warrant  might  have been
         exercised  immediately prior to such  consolidation,  merger,  sale, or
         purchase  reduced by such amount of the  consideration  as has a market
         value  equal to the  Exercise  Price,  as  determined  by the  Board of
         Directors of the Company,  whose  determination shall be conclusive and
         binding,  or (iii)  receive  cash equal to the value of this Warrant as
         determined in accordance with the Black-Scholes  option pricing formula
         using the method  agreed upon among the parties at the Closing.  If any
         Holder fails to timely notify the Company of its  election,  the Holder
         shall be deemed for all  purposes to have  elected the option set forth
         in (ii) above.  Any amounts  receivable by a Holder who has elected the
         option  set forth in (ii)  above  shall be  payable at the same time as
         amounts   payable  to   stockholders   in  connection   with  any  such
         transactions.

         13.  Voluntary  Adjustment by the Company.  The Company may at any time
during the term of this Warrant  reduce the then current  Exercise  Price to any
amount and for any period of time deemed  appropriate  by the Board of Directors
of the Company.

         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.

                                       8
<PAGE>

         15. REGISTRATION UNDER THE SECURITIES ACT.

                  (a) Demand Registration.

                           (i) Right to Demand Registration.  At one time during
the term of this Warrant,  the Holder shall have the right to request in writing
that the Company  register all (but not less than all) of the  Holders'  Warrant
Shares (a "Request")  (which  Request shall specify the amount of Warrant Shares
intended to be disposed of by the Holder and the intended  method of disposition
thereof) by filing with the SEC a Demand Registration Statement (defined below).
The Company shall, as  expeditiously  as possible  following a Request,  use its
best  efforts  to cause to be filed  with the SEC a  registration  statement  (a
"Demand  Registration  Statement")  providing  for the  registration  under  the
Securities  Act of the Warrant Shares which the Company has been so requested to
register by the Holder,  to the extent  necessary to permit the  disposition  of
such Warrant Shares so to be registered in accordance with the intended  methods
of disposition thereof specified in such Request (including, without limitation,
by means of a shelf  registration  pursuant to Rule 415 under the Securities Act
(a "Shelf  Registration") if so requested and if the Company is then eligible to
use such a  registration).  The Company  shall use its best efforts to have such
Demand  Registration  Statement  declared  effective  by  the  SEC  as  soon  as
practicable   thereafter  and  to  keep  such  Demand   Registration   Statement
continuously  effective (except in the case of a shelf  registration  statement)
for the earlier of (A) nine (9) months and (B) such time as all  Warrant  Shares
covered by such Demand  Registration  Statement have been sold, but in any event
at least 90 days.

                           A Request may be withdrawn prior to the filing of the
Demand Registration Statement by the Holder (a "Withdrawn Request") and a Demand
Registration  Statement may be withdrawn prior to the  effectiveness  thereof by
the Holder (a "Withdrawn  Demand  Registration"),  and such withdrawal  shall be
treated as a Demand Registration which shall have been effected pursuant to this
Section  15(a),  unless the Holder  reimburses  the Company  for its  reasonable
out-of-pocket  expenses  incident  to  performance  of or  compliance  with this
agreement by the Company  ("Registration  Expenses") relating to the preparation
and  filing  of such  Demand  Registration  Statement  (to the  extent  actually
incurred);   provided;  however,  that  if  a  Withdrawn  Request  or  Withdrawn
Registration  Statement is made (A) because of a material  adverse change in the
business,  financial  condition or prospects of the Company then such withdrawal
shall not be treated as a Demand Registration  effected pursuant to this Section
15(a),  and the  Company  shall  pay all  Registration  Expenses  in  connection
therewith. The Holder may, at any time prior to the effective date of the Demand
Registration  Statement  (and for any reason)  revoke such request by delivering
written notice to the Company revoking such requested inclusion.

                           In no event  shall the  Company be required to effect
more than one (1) registration  pursuant to this Section 15(a). The registration
rights  granted  pursuant to the  provisions  of this Section  15(a) shall be in
addition  to the  registration  rights  granted  pursuant to the  provisions  of
Section 15 (b) hereof.

                           (ii) Registration of Other  Securities.  Whenever the
Company  shall  effect a Demand  Registration,  other than  Warrant  Shares,  no
securities in excess of 250,000  shares of common stock shall be covered by such
registration  unless the Holder shall have consented in writing to the inclusion
of such other securities.

                                       9
<PAGE>

                           (iii) Effective Registration  Statement;  Suspension.
Except as otherwise set forth in this Warrant, a Demand  Registration  Statement
shall not be deemed to have become effective (and the related  registration will
not be deemed to have been  effected) (A) unless it has been declared  effective
by the SEC and  remains  effective  in  compliance  with the  provisions  of the
Securities Act with respect to the  disposition of all Warrant Shares covered by
such Demand Registration Statement for the time period specified in this Section
15 or (B)  if the  offering  of any  Warrant  Shares  pursuant  to  such  Demand
Registration Statement is interfered with by any stop order, injunction or other
order or requirement of the SEC or any other governmental agency or court.

                           (iv) Registration Statement Form. Registrations under
this Section 15(a) shall be on such appropriate registration form of the SEC (A)
as shall be selected by the  Company  and (B) which shall be  available  for the
sale of the Warrant Shares in accordance  with the intended method or methods of
disposition  specified in the requests for  registration.  The Company agrees to
include in any such Registration Statement all information concerning the Holder
which the Holder, upon advice of counsel, shall reasonably request.

         (b) Incidental Registration. If the Company at any time or from time to
time during the term of this Warrant  proposes to register any of its securities
under the Securities Act (other than in a registration on Form S-4 or S-8 or any
successor  form to such forms and other than pursuant to Section  15(a)) whether
or  not  pursuant  to  registration  rights  granted  to  other  holders  of its
securities  and whether or not for sale for its own account,  the Company  shall
deliver  prompt  written  notice  (which  notice shall be given at least 30 days
prior to such proposed registration) to the Holder of its intention to undertake
such registration, describing in reasonable detail the proposed registration and
distribution  (including the anticipated  range of the proposed  offering price,
the  class  and  number  of  securities   proposed  to  be  registered  and  the
distribution  arrangements)  and of the Holders'  right to  participate  in such
registration  under this Section 15(b) as hereinafter  provided.  Subject to the
other provisions of this paragraph 15(b), upon the written request of the Holder
made  within 20 days after the receipt of such  written  notice  (which  request
shall specify the amount of securities to be registered and the intended  method
of disposition  thereof),  the Company shall effect the  registration  under the
Securities Act of all Warrant Shares requested by the Holder to be so registered
(an  "Incidental   Registration"),   to  the  extent  requisite  to  permit  the
disposition  (in accordance  with the intended  methods thereof as aforesaid) of
the Warrant Shares so to be  registered,  by inclusion of such Warrant Shares in
the  Registration  Statement  which  covers  the  securities  which the  Company
proposes to register and shall cause such  Registration  Statement to become and
remain effective (except in the case of a shelf registration  statement) for the
earlier of (A) nine (9) months and (B) the date all  Warrant  Shares  covered by
such  Registration  Statement are sold,  but in any event at least 90 days.  The
Holder  may,  at  any  time  prior  to the  effective  date  of  the  Incidental
Registration  Statement (and for any reason),  revoke such request by delivering
written notice to the Company revoking such requested inclusion.

         If at any time after giving written notice of its intention to register
any securities  and prior to the effective  date of the Incidental  Registration
Statement  filed  in  connection  with  such  registration,  the  Company  shall
determine  for any  reason  not to  register  or to delay  registration  of such
securities,  the  Company  may, at its  election,  give  written  notice of such
determination to the Holder and,  thereupon,  (A) in the case of a determination

                                       10
<PAGE>

not to register, the Company shall be relieved of its obligation to register any
Warrant Shares in connection with such registration (but not from its obligation
to pay the  Registration  Expenses  incurred in connection  therewith),  without
prejudice, however, to the rights of the Holder to cause such registration to be
effected  as a  registration  under  Section  15(a),  and  (B) in the  case of a
determination  to delay such  registration,  the Company  shall be  permitted to
delay the registration of the Warrant Shares for the same period as the delay in
registering such other securities;  provided,  however, that if such delay shall
extend  beyond 120 days from the date the Company  received a request to include
Warrant  Shares in such  Incidental  Registration,  then the Company shall again
give the Holder the  opportunity  to  participate  therein and shall  follow the
notification  procedures  set  forth  in the  preceding  paragraph.  There is no
limitation  on the  number of such  Incidental  Registrations  pursuant  to this
Section 15(b) which the Company is obligated to effect.

         In connection with any offering  involving an underwriting of shares of
the Company's  capital stock pursuant to this Section  15(b),  the Company shall
not be  required  to  include  any of the  Warrant  Shares  securities  in  such
underwriting  unless the Holder accepts the terms of the  underwriting as agreed
upon between the Company and its underwriters, and then only in such quantity as
the underwriters  determine in their  reasonable  discretion will not jeopardize
the success of the offering by the Company.  If the total number of  securities,
including  Warrant  Shares,  requested  by  stockholders  to be included in such
offering  exceeds the amount of  securities to be sold other than by the Company
that the underwriters  determine in their sole discretion is compatible with the
success of the  offering,  then the Company  shall be required to include in the
offering only that number of such securities,  including  Warrant Shares,  which
the  underwriters  and the Company  determine in their sole  discretion will not
jeopardize  the  success of the  offering.  The  Company  shall  include in such
registration, to the extent of the number which the Company is so advised may be
included in such offering without such effect, (i) in the case of a registration
initiated by the Company, (A) first, the securities that the Company proposes to
register for its own account,  (B) second,  the Warrant  Shares  requested to be
included in such registration by the Holder,  and (C) third, other securities of
the Company to be registered on behalf of any other Person, and (ii) in the case
of a registration  initiated by a Person other than the Company,  (A) first, the
securities  requested  to be  included  in  such  registration  by  the  Persons
initiating such  registration,  (B) second,  the Warrant Shares  requested to be
included in such registration by the Holder;  (C) third, the securities that the
Company  proposes  to  register  for its own  account,  and  (D)  fourth,  other
securities of the Company to be registered on behalf of any other Person

         The  registration  rights  granted  pursuant to the  provisions of this
Section 15(b) shall be in addition to the  registration  rights granted pursuant
to the other provisions of Section 15(a) hereof.

                  (c) Certain Limitations.

                           (i)  Furnish  Information.  It shall  be a  condition
precedent  to the  obligations  of the  Company to take any action  pursuant  to
Section 15 with  respect to the Warrant  Shares of any selling  Holder that such
Holder  shall  furnish to the Company such  information  regarding  itself,  the
Warrant  Shares  held by it,  and the  intended  method of  disposition  of such
securities as shall be reasonably  required to effect the  registration  of such
Holder's Warrant Shares.

                                       11
<PAGE>

                           (ii) Nontransferability of Rights. In the event, this
Warrant  is  subdivided  into one or more  Warrants,  only a Holder of a Warrant
relating to more than 50% of the Warrants  Shares  initially  subject to Warrant
No. 1 of this Warrant  shall  succeed to the rights and  obligations  under this
Section 15.  Notwithstanding  anything  in this  Warrant to the  contrary,  this
Section 15 shall be omitted from any replacement or substitute Warrant that does
not relate to at least 50% of the number of Warrant Shares initially  subject to
Warrant Certificate No. 1 of this Warrant.

                           (iii)  Confidentiality   Requirement.  The  Company's
obligations under Section 15(b) shall be subject to the Holder's prior execution
of a confidentiality  agreement in form and substance  reasonably  acceptable to
the Company to keep confidential the fact of the proposed registration,  and not
to enter into any agreements  with respect to the purchase or sale of securities
of the Company,  until the Company has publicly announced the details related to
such registration (or determined not to proceed with such registration).

         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  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 reasonably 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.

                                       12
<PAGE>

17.      Miscellaneous.

                  (a) Governing Law; Venue;  Waiver of Jury Trial. All questions
         concerning the construction,  validity,  enforcement and interpretation
         of this  Warrant  shall be governed by and  construed  and  enforced in
         accordance  with the  internal  laws of the State of New York,  without
         regard to the principles of conflicts of law thereof. Each party agrees
         that all legal proceedings concerning the interpretations,  enforcement
         and defense of the  transactions  contemplated by this Warrant (whether
         brought against a party hereto or its respective affiliates, directors,
         officers,  shareholders,   employees  or  agents)  shall  be  commenced
         exclusively  in the state and federal courts sitting in the City of New
         York,  borough of Manhattan (the "New York Courts").  Each party hereby
         irrevocably  submits  to the  exclusive  jurisdiction  of the New  York
         Courts for the  adjudication of any dispute  hereunder or in connection
         herewith  or with any  transaction  contemplated  hereby  or  discussed
         herein, and hereby irrevocably  waives, and agrees not to assert in any
         suit, action or proceeding, any claim that it is not personally subject
         to the  jurisdiction of any such court, or that the New York Courts are
         an  improper  or  inconvenient  venue for such  proceeding.  Each party
         hereby  irrevocably  waives personal service of process and consents to
         process being served in any such suit,  action or proceeding by mailing
         a copy thereof via registered or certified  mail or overnight  delivery
         (with  evidence of delivery) to such party at the address in effect for
         notices to it under this  Warrant  and agrees that such  service  shall
         constitute  good and sufficient  service of process and notice thereof.
         Nothing  contained herein shall be deemed to limit in any way any right
         to serve  process in any manner  permitted by law.  The parties  hereto
         hereby irrevocably waive, to the fullest extent permitted by applicable
         law, any and all right to trial by jury in any legal proceeding arising
         out of or relating  to this  Warrant or the  transactions  contemplated
         thereby.  If either  party shall  commence an action or  proceeding  to
         enforce any provisions of this Warrant,  then the  prevailing  party in
         such action or  proceeding  shall be  reimbursed by the other party for
         its  attorneys'  fees and other costs and  expenses  incurred  with the
         investigation,   preparation   and   prosecution   of  such  action  or
         proceeding.

                  (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.

                  (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.

                                       13
<PAGE>

                  (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;  provided,
         however,  that the Holder may not assign its rights to a competitor  or
         potential competitor of the Company. 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.  If any provision of this Warrant is held to
         be  invalid  or  unenforceable   in  any  respect,   the  validity  and
         enforceability  of the remaining  terms and  provisions of this Warrant
         shall not in any way be affected  or  impaired  thereby and the parties
         will attempt to agree upon a valid and enforceable  provision that is a
         reasonable substitute therefor, and upon so agreeing, shall incorporate
         such substitute provision in this Warrant.

                  (j)  Construction.  The  headings  herein are for  convenience
         only, do not
         constitute  a part of this  Warrant and shall not be deemed to limit or
         affect any of the provisions  hereof. The language used in this Warrant
         will be deemed to be the  language  chosen by the  parties  to  express
         their  mutual  intent,  and no rules  of  strict  construction  will be
         applied against any party.

                  (k) Interpretation. Unless the context otherwise requires, the
         terms  defined  in this  Section  17  shall  have the  meanings  herein
         specified  for all  purposes of this  Warrant,  applicable  to both the
         singular and plural forms of any of the terms  defined  herein.  When a
         reference is made in this Warrant to a Section, such reference shall be
         to a Section of this Warrant unless otherwise  indicated.  Whenever the
         words  "include,"  "includes" or "including"  are used in this Warrant,
         they shall be deemed to be followed by the words "without  limitation."
         The use of any gender  herein  shall be deemed to include  the  neuter,
         masculine and feminine genders wherever necessary or appropriate.  When
         any matter is disclosed (a) in any Transaction  Document (including any
         exhibit or schedule thereto), (b) any place in the Disclosure Schedule,
         or (c) , in the  Company's  Form 10-K for the year ended  December  31,

                                       14
<PAGE>

         2003,  any Form 8-K filed since the filing date of the  Company's  Form
         10-K for the year ended December 31, 2003, the Proxy  Statement for the
         2004 Annual  Meeting of  Shareholders,  the Forms 10-Q for the quarters
         ended March 31, 2004, June 30, 2004 or September 30, 2004, or all press
         releases issued after the filing of the Form 10-Q for the quarter ended
         September 30, 2004 and prior to the Closing Date,  such matter shall be
         deemed to have been  disclosed  to all of the Holders for all  purposes
         pursuant to all of the Transaction Documents. If any period of time for
         the performance  under the Transaction  Documents ends on a day that is
         not a Trading Day, such period of time shall be automatically  extended
         to end at the end of the next succeeding Trading Day.

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

<PAGE>

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

Dated:  February 15, 2005

                          ALTAIR NANOTECHNOLOGIES INC.

                          By:___________________________________________________
                               Name:
                               Title:

                               NOTICE OF EXERCISE

To:      ALTAIR NANOTECHNOLOGIES INC.

         (1) The undersigned  hereby elects to purchase  ________ Warrant Shares
of Altair  Nanotechnologies  Inc.  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.

         Payment shall take the form of lawful money of the United States.

         (2)  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:

        _______________________________________________________

        _______________________________________________________

       _______________________________________________________

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

         (4) Investment  Intent. The undersigned is acquiring the Warrant Shares
for its own account  and not with a view  towards,  or for resale in  connection
with,  the  public  sale or  distribution  thereof,  except  pursuant  to  sales
registered  or  exempted  under  the  1933  Act;  provided,  however,  that  the
undersigned  does not agree to hold any of the Warrant Shares for any minimum or
other  specific term and reserves the right to dispose of the Warrant  Shares at
any time in  accordance  with or  pursuant  to a  registration  statement  or an
exemption under the Securities Act of 1933, as amended.

                                  [PURCHASER]

                                  By: __________________________________________
                                        Name:
                                        Title:

                                  Dated:  ______________________________________

                                 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.

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