Document:

Exhibit 10.4

NO. C

                          COMMON STOCK PURCHASE WARRANT

      THIS COMMON STOCK PURCHASE WARRANT (this "Warrant") evidences that, for
value received, the undersigned, _______________________, and his, her or its
assignee(s) (the "HOLDER") is entitled, upon the terms and subject to the
conditions hereafter set forth, to subscribe for and purchase from National
Lampoon, Inc., a Delaware corporation (the "COMPANY"), ______________ post-split
fully paid and nonassessable shares of the Company's Common Stock, par value
$0.0001 per share (the "COMMON STOCK"). (The Company's Common Stock was split on
September 15, 2004 so that each of the Company's stockholders received an
additional share of Common Stock for each share of Common Stock he, she or it
owned. The number of shares of Common Stock represented by this Warrant and the
Exercise Price have been adjusted for the split, in accordance with Section 8
below.) The number and exercise price of the shares of Common Stock that may be
purchased upon the exercise of this Warrant are subject to adjustment as
provided herein.

      Section 1. EXERCISE PERIOD. The purchase rights represented by this
Warrant are exercisable by the Holder, in whole or in part and at any time or
from time to time, on or after the issuance date of this Warrant and on or
before the date that is four (4) years after the issuance date hereof (the
"EXERCISE PERIOD"). Notwithstanding the foregoing, in the event of (a) the
closing of the Company's sale or transfer of all or substantially all of its
assets, or the closing of the acquisition of the Company by another entity by
means of merger, consolidation or other transaction or series of related
transactions, resulting in the exchange of the outstanding shares of the
Company's capital stock such that the stockholders of the Company prior to such
transaction own, directly or indirectly, less than fifty percent (50%) of the
voting power of the surviving entity (an "ACQUISITION"), this Warrant shall,
immediately following the consummation of such Acquisition, no longer be
exercisable and become null and void. In the event of a proposed transaction of
the kind described above, the Company shall use its best efforts to notify the
holder of this Warrant at least thirty (30) days prior to the consummation of
such event or transaction.

      Section 2. EXERCISE PRICE. The price per share for purchase of the Common
Stock upon exercise of this Warrant shall be $1.77 per share (the "EXERCISE
PRICE").

      Section 3. EXERCISE OF WARRANT.

            (a) During the Exercise Period, this Warrant may be exercised, in
      whole or in part and from time to time, by the surrender of this Warrant
      and the Notice of Exercise annexed hereto duty executed at the principal
      office of the Company and, except as otherwise provided in Section 16,
      upon payment of the Exercise Price of the shares thereby purchased
      (payment to be by check or bank draft payable to the order of the
      Company).

            (b) Upon exercise, the Holder shall be entitled to receive, within a
      reasonable time one or more certificates, issued in the Holder's name or
      in such name or names as the Holder may direct, for the number of shares
      of Common Stock so purchased. The shares so purchased shall be deemed to
      be issued as of the close of business on the date on which this Warrant
      shall have been exercised,
<PAGE>

            (c) No fractional shares or scrip representing fractional shares
      shall be issued upon the exercise of this Warrant. In lieu thereof, a cash
      payment shall be made equal to such fraction multiplied by the Exercise
      Price per share as then in effect.

            (d) If an exercise of any portion of this Warrant is to be made in
      connection with a registered public offering or the sale of the Company by
      whatever means or structure effected, the exercise of any portion of this
      Warrant may, at the election of the Holder, be conditioned upon the
      consummation of the public offering or sale of the Company, in which case
      such exercise shall not be deemed to be effective until the consummation
      of such transaction.

            (e) In the event the exercise of this Warrant is consummated in
      connection with a merger or consolidation in which the Company is not the
      surviving corporation (other than a merger or consolidation with a
      wholly-owned subsidiary, a reincorporation of the Company in a different
      jurisdiction, or other transaction in which there is no substantial change
      in the stockholders of the Company or their relative stock holdings), the
      Holder of this Warrant may exercise this Warrant and pay the applicable
      Exercise Price (i) through a "same day sale" commitment between such
      Holder and a broker-dealer that is a member of the National Association of
      Securities Dealers (an "NASD DEALER"), which commitment provides that the
      Holder irrevocably elects to exercise this Warrant and to sell a portion
      of the Common Stock so purchased to pay for the Exercise Price, and the
      NASD Dealer irrevocably commits upon receipt of such Common Stock to
      forward the Exercise Price directly to the Company, or (ii) through a
      "margin" commitment from the Holder of this Warrant and the NASD Dealer,
      the Holder irrevocably elects to exercise this Warrant and to pledge the
      Common Stock so purchased to the NASD Dealer in a margin account as
      security for a loan from the NASD Dealer in the amount of the exercise
      price, and whereby the NASD Dealer irrevocably commits upon receipt of
      such Common Stock to forward the Exercise Price directly to the Company.

      Section 4. STATUS OF SHARES. The Company represents, warrants and
covenants that all shares of Common Stock that are issued upon the exercise of
rights represented by this Warrant will be fully paid, 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).

      Section 5. CHARGES, TAXES, AND EXPENSES. The issuance of certificates in
the name of the Holder for the Common Stock purchasable upon the exercise of
this Warrant shall be made without charge to the Holder of this Warrant for any
issue tax in respect thereof. The Holder shall pay all stock transfer taxes, if
any, in respect of any transfer of this Warrant or any Common Stock that may be
purchased upon the exercise of this Warrant.

                                     PAGE 2
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      Section 6. NO RIGHTS AS SHAREHOLDER. Prior to the exercise of this Warrant
and payment of the Exercise Price in accordance with Section 3, the holder shall
not be entitled to any rights of a shareholder with respect to the Common Stock,
including without limitation the right to vote such Common Stock, receive
dividends or other distributions thereon or be notified of stockholder meetings,
and such holder shall not be entitled to any notice or other communication
concerning the business or affairs of the Company. However, nothing in this
Section 6 shall limit the right of the holder to be provided the notices
required under this Warrant.

      Section 7. REGISTRATION RIGHTS. The rights of the Holder to register the
Common Stock issuable upon exercise of this Warrant shall be as stated in the
Series C Registration Rights Agreement dated as of the issuance date of this
Warrant among the Holder, the Company and certain other persons a party thereto,
as amended and modified from time to time.

      Section 8. Adjustments.

            (a) Adjustment of the Exercise Price for Stock Splits, Reverse Stock
      Splits, and Stock Dividends. In the event that the outstanding shares of
      Common Stock shall be subdivided (split) or combined (reverse split), by
      reclassification or otherwise, or in the event of any dividend payable on
      the Common Stock in shares of Common Stock, the applicable Exercise Price
      and the number of shares of Common Stock available for purchase under this
      Warrant in effect immediately prior to such subdivision, combination, or
      dividend shall be proportionately adjusted.

            (b) Adjustment for Capital Reorganizations. If at any time there
      shall be a capital reorganization of the Company's Common Stock or a
      merger or consolidation of the Company with or into another corporation,
      or the sale of the Company's properties and assets as, or substantially
      as, an entirety to any other person, then, as part of such reorganization,
      merger, consolidation, or sale, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive, on
      exercise of this Warrant during the period specified in this Warrant and
      on payment of the Exercise Price then in effect, the number of shares of
      stock or other securities or property of the Company, or of the successor
      corporation resulting from such merger or consolidation, to which a holder
      of the Common Stock deliverable on exercise of this Warrant would have
      been entitled on such capital reorganization, merger, consolidation, or
      sale if this Warrant had been exercised immediately before that capital
      reorganization, merger, consolidation, or sale. In any such case,
      appropriate adjustment, as determined in good faith by the Board, shall be
      made in the application of the provisions of this Warrant with respect to
      the rights and interests of the Holder of this Warrant after the
      reorganization, merger, consolidation, or sale to the end that the
      provisions of this Warrant (including adjustment of the Exercise Price
      then in effect and the number of shares purchasable on exercise of this
      Warrant, but without any change in the aggregate Exercise Price) shall be
      applicable after that event, as near as reasonably may be, in relation to
      any shares or other securities or property deliverable after that event on
      exercise of this Warrant.

            (c) Certificate as to Adjustments. Upon the occurrence of each
      adjustment or readjustment pursuant to this Section 8, the Company at its
      expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Holder a certificate
      setting forth such adjustment or readjustment and showing in detail the
      facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of the Holder, furnish or
      cause to be furnished to the Holder, a like certificate setting forth: (i)
      such adjustments and readjustments; (ii) the Exercise Price at the time in
      effect; and (iii) the number of shares of Common Stock and the amount, if
      any, of other property that at the time would be received upon the
      exercise of the Warrant.

                                     PAGE 3
<PAGE>

      Notices of Record Date. In the event of any taking by the Company of a
      record of the holders of any class of securities for the purpose of
      determining the holders thereof who are entitled to receive any dividend
      or other distribution, the Company shall mail to each Holder, at least ten
      days prior to the date specified for the taking of a record, a notice
      describing the proposed event and specifying the date on which any such
      record is to be taken for the purpose of such dividend or distribution

      Section 9. SALE OR TRANSFER OF THE WARRANT; LEGEND. This Warrant, and any
shares of Common Stock of the Company purchased upon exercise of this Warrant,
shall not be sold or transferred unless either (i) they first shall have been
registered under the Securities Act of 1933, as amended (the "SECURITIES ACT"),
or (ii) such sale or transfer is exempt from the registration requirements of
the Securities Act. Such Warrant and shares may be subject to additional
restrictions on transfer imposed under applicable state and federal securities
law. Each certificate representing any Warrant and any such share that has not
been registered and that has not been sold pursuant to an exemption that permits
removal of the legend shall bear a legend substantially in the following form,
as appropriate:

      THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      WITH THE SECURITIES AND EXCHANGE COMMISSION, OR THE SECURITIES COMMISSION
      OF ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). BY THE ACCEPTANCE HEREOF,
      THE HOLDER AGREES THAT THESE SECURITIES MAY NOT BE OFFERED, SOLD OR
      TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES
      UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT
      REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS.

      Upon request of a holder of such a certificate, the Company shall remove
the foregoing legend from the certificate or issue to such holder a new
certificate therefor free of any transfer legend, if, with such request, the
Company shall have received a written opinion of legal counsel who shall be
reasonably satisfactory to the Company, addressed to the Company and reasonably
satisfactory in form and substance to the Company's counsel, to the effect that
such legend is not required in order to establish compliance with any provisions
of the Securities Act.

      Section 10. REPRESENTATIONS. The provisions respecting the making of
representations regarding investment intent and investor suitability in, and
that are required to be made by investors in the Company pursuant to Article 6
of the Preferred Stock and Warrant Purchase Agreement dated as of the issuance
date of this Warrant among the Company, and various investors in the Company,
are hereby incorporated in full herein by this reference with the same effect as
if fully set forth herein, and are applicable to the purchase of this Warrant
and to purchases of shares of Common Stock pursuant to the exercise of purchase
rights hereunder.

                                     PAGE 4
<PAGE>

      Section 11. LOSS, THEFT, DESTRUCTION, OR MUTILATION OF WARRANT. Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction, or mutilation of this Warrant, and in case of loss, theft,
or destruction upon receipt of indemnity or security reasonably satisfactory to
it, and upon reimbursement to the Company of all reasonable expenses incidental
thereto, and upon surrender and cancellation of this Warrant, if mutilated, the
Company will make and deliver a new Warrant of like tenor and dated as of such
cancellation in lieu of this Warrant.

      Section 12. SATURDAYS, SUNDAYS, HOLIDAYS, AND SO FORTH. 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 or a Sunday or shall be a legal
holiday, then such action may be taken or such right may be exercised on the
next succeeding day that is not a legal holiday.

      Section 13. AUTHORIZED SHARES. The Company covenants that during the
period this Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of any purchase rights under this Warrant.

      Section 14. ISSUE DATE. The provisions of this Warrant shall be construed
and shall be given effect in all respects as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any
successors or assigns of the Company.

      Section 15. GOVERNING LAW. The corporate law of the State of Delaware
shall govern all issues and questions concerning the relative rights and
obligations of the Company and its stockholders. All other issues and questions
concerning the construction, validity, enforcement and interpretation of this
Warrant shall be governed by, and construed in accordance with, the laws of the
State of Delaware, without giving effect to any choice of law or conflict of law
rules or provisions (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the
State of Delaware.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer and the Holder has accepted same as evidenced by
his, her or its signature below, all of as of the issuance date of this Warrant,
which is October 25, 2004.

                                     PAGE 5
<PAGE>

                                          "COMPANY"

                                          NATIONAL LAMPOON, INC.

                                          By__________________________________
                                            Douglas S. Bennett
                                            Executive Vice President

                                          "HOLDER"

                                          By:_________________________________

                                     PAGE 6
<PAGE>

                  NOTICE OF EXERCISE OF STOCK PURCHASE WARRANT

To: The Company

      1.    Pursuant to the terms of the attached Warrant, the undersigned
            hereby elects to purchase ______ shares of Common Stock of National
            Lampoon, Inc., a Delaware corporation (the "COMPANY"), and tenders
            herewith payment of the purchase price of such shares in full.

      2.    Please issue a certificate or certificates representing said shares
            of Common Stock, in the name of the undersigned or in such other
            name(s) as is/are specified immediately below or, if necessary, on
            an attachment hereto:

            [List names and addresses]

      3.    In the event of partial exercise, please reissue an appropriate
            Warrant exercisable into the remaining shares

      4.    The undersigned represents that the aforesaid shares of Common Stock
            are being acquired for the account of the undersigned for investment
            and not with a view to, or for resale in connection with, the
            distribution thereof and that the undersigned has no present
            intention of distributing or reselling such shares. The undersigned
            further represents that such share shall not be sold or transferred
            unless either (a) they first shall have been registered under the
            Securities Act or (b) the Company first shall have been furnished
            with an opinion of legal counsel reasonably satisfactory to the
            Company to the effect that such sale or transfer is exempt from the
            registration requirement.

Date:__________________________                 ________________________________
                                                Warrant Holder

                                     PAGE 7NEITHER THE ISSUANCE AND SALE OF THE SECURITIES  REPRESENTED BY THIS CERTIFICATE
NOR THE  SECURITIES  INTO  WHICH  THESE  SECURITIES  ARE  EXERCISABLE  HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE  REGISTRATION  STATEMENT RELATED THERETO OR
AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION  IS NOT REQUIRED UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR
UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

                                  TECHALT, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.: 8
Number of Shares: 750,000

Date of Issuance:  November ____, 2004 ("Issuance Date")

      TECHALT,  INC., a Nevada  corporation  (the  "Company"),  hereby certifies
that, for good and valuable consideration,  the receipt and sufficiency of which
are hereby  acknowledged,  Paul  Masanek,  the  registered  holder hereof or his
permitted  assigns (the "Holder"),  is entitled,  subject to the terms set forth
below,  to purchase from the Company,  at the Exercise  Price (as defined below)
then in  effect,  upon  surrender  of this  Warrant  to  Purchase  Common  Stock
(including all Warrants to Purchase Common Stock issued in exchange, transfer or
replacement  hereof,  the "Warrant"),  at any time or times on or after the date
hereof,  but not after 11:59 P.M.,  New York Time,  on the  Expiration  Date (as
defined  below),   Seven  Hundred  and  Fifty  Thousand   (750,000)  fully  paid
nonassessable  shares of Common Stock (as defined below) (the "Warrant Shares").
Except as otherwise defined herein, capitalized terms in this Warrant shall have
the  meanings  set forth in  Section  15.  This  Warrant is the  Warrant  issued
pursuant to Section 9.1 of that certain Settlement Agreement, dated of even date
herewith (the "Settlement  Date"),  between the Company and Paul Masanek,  among
others (the "Settlement Agreement"").

1. EXERCISE OF WARRANT.

      (a) MECHANICS OF EXERCISE. Subject to the terms and conditions hereof this
Warrant may be  exercised  by the Holder on any day on or after the date hereof,
in whole or in part, by (i) delivery of a written  notice,  in the form attached
hereto  as  EXHIBIT A (the  "Exercise  Notice"),  of the  Holder's  election  to
exercise  this Warrant and (ii) (A) payment to the Company of an amount equal to
the applicable  Exercise Price  multiplied by the number of Warrant Shares as to
which this Warrant is being exercised (the "Aggregate  Exercise  Price") in cash
or by wire  transfer of  immediately  available  funds or (B) by  notifying  the
Company that this Warrant is being exercised pursuant to a Cashless Exercise (as
defined in  Section  1(d)).  The Holder  shall not be  required  to deliver  the
original  Warrant  in order to  effect  an  exercise  hereunder.  Execution  and
delivery of the  Exercise  Notice  with  respect to less than all of the Warrant
Shares shall have the same effect as  cancellation  of the original  Warrant and
issuance of a new Warrant  evidencing the right to purchase the remaining number
of Warrant  Shares.  On or before the first  Business Day  following the date on
which the Company has  received  each of the Exercise  Notice and the  Aggregate
Exercise  Price (or  notice of a  Cashless  Exercise)  (the  "Exercise  Delivery
Documents"),  the Company  shall  transmit by  facsimile  an  acknowledgment  of
confirmation of receipt of the Exercise Delivery Documents to the Holder and the
Company's transfer agent (the "Transfer Agent"). On or before the third Business
Day  following  the date on which the Company has  received  all of the Exercise
Delivery  Documents (the "Share Delivery Date"),  the Company shall (X) provided
that the Transfer Agent is participating in The Depository Trust Company ("DTC")
Fast  Automated  Securities  Transfer  Program,  upon the request of the Holder,
credit such  aggregate  number of shares of Common  Stock to which the Holder is
entitled  pursuant to such  exercise to the Holder's or his  designee's  balance
account with DTC through its Deposit  Withdrawal Agent Commission system, or (Y)
if the Transfer Agent is not participating in the DTC Fast Automated  Securities
Transfer  Program,  issue and  dispatch by  overnight  courier to the address as
specified in the Exercise Notice,  a certificate,  registered in the name of the
Holder or his  designee,  for the number of shares of Common  Stock to which the
Holder is entitled  pursuant to such  exercise.  Upon  delivery of the  Exercise
Notice and  Aggregate  Exercise  Price  referred to in clause  (ii)(A)  above or
notification to the Company of a Cashless  Exercise referred to in Section 1(d),
the Holder shall be deemed for all corporate  purposes to have become the holder
of record of the  Warrant  Shares  with  respect to which this  Warrant has been
exercised,  irrespective of the date of delivery of the certificates  evidencing
such  Warrant  Shares.  If this  Warrant is  submitted  in  connection  with any
exercise  pursuant  to this  Section  1(a)  and the  number  of  Warrant  Shares
represented by this Warrant submitted for exercise is greater than the number of
Warrant Shares being  acquired upon an exercise,  then the Company shall as soon
as practicable and in no event later than three Business Days after any exercise
and at its own expense,  issue a new Warrant (in  accordance  with Section 7(d))
representing  the right to  purchase  the number of Warrant  Shares  purchasable
immediately  prior to such  exercise  under  this  Warrant,  less the  number of
Warrant  Shares with respect to which this Warrant is  exercised.  No fractional
shares of Common Stock are to be issued upon the exercise of this  Warrant,  but
rather the number of shares of Common  Stock to be issued shall be rounded up to
the nearest  whole number.  The Company  shall pay any and all taxes,  including
without limitation,  all documentary stamp,  transfer or similar taxes, or other
incidental expense that may be payable with respect to the issuance and delivery
of Warrant Shares upon exercise of this Warrant.

<PAGE>

      (b) EXERCISE PRICE.  For purposes of this Warrant,  "Exercise Price" means
1.00, subject to adjustment as provided herein.

      (c) COMPANY'S FAILURE TO TIMELY DELIVER  SECURITIES.  If the Company shall
fail for any  reason  or for no reason to issue to the  Holder  within  five (5)
Business Days of the Exercise  Date, a  certificate  for the number of shares of
Common Stock to which the Holder is entitled or to credit the  Holder's  balance
account  with DTC for such number of shares of Common  Stock to which the Holder
is entitled upon the Holder's exercise of this Warrant, the Company shall pay as
damages in cash to such  Holder on each day after such fifth  Business  Day that
the issuance of such Common Stock is not timely effected an amount equal to 1.0%
of the product of (A) the sum of the number of shares of Common Stock not issued
to the Holder on a timely  basis and to which the Holder is entitled and (B) the
Closing Sale Price of the Common Stock on the trading day immediately  preceding
the last  possible date which the Company could have issued such Common Stock to
the Holder  without  violating  Section  1(a).  In addition to any other  rights
available  to a Holder and the  foregoing  provisions,  if the Company  fails to
deliver  or cause to be  delivered  to the  Holder  a  certificate  representing
Warrant  Shares by the  Business  Day after the date on which  delivery  of such
certificate  is required by this  Warrant,  and if on or after such Business Day
the Holder  purchases (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 that the Holder anticipated receiving from the Company (a "Buy-In"), then
the Company shall,  within three Business Days after the Holder's request and in
the Holder's discretion, either (i) pay cash to the Holder in an amount equal to
the Holder's total purchase price (including brokerage commissions,  if any) for
the shares of Common Stock so purchased, at which point the Company's obligation
to deliver  such  certificate  (and to issue such shares of Common  Stock) shall
terminate,  or (ii)  promptly  honor its  obligation  to deliver to the Holder a
certificate  or  certificates  representing  such  shares of Common  Stock  (the
"Buy-In Shares") and pay cash to the Holder in an amount equal to the product of
(A) the number of Buy-In  Shares,  times (B) the excess (if any) of the  Closing
Sale Price on the date of the Buy-In over the Closing  Sale Price on the date of
delivery of the Buy-In Shares.

<PAGE>

      (d) CASHLESS  EXERCISE.  Notwithstanding  anything contained herein to the
contrary,  (i) if the current fair market value of one (1) share of Common Stock
is  greater  than the  Exercise  Price  (as of the date of the  delivery  of the
Exercise Notice duly executed to the principal  office of the Company  notifying
the Company of a cashless exercise),  or (ii) if the Registration  Statement (as
defined in the Registration  Rights Agreement)  covering the Warrant Shares that
are the subject of the Exercise Notice (the "Unavailable Warrant Shares") is not
available for the resale of such Unavailable  Warrant Shares, the Holder may, in
his sole  discretion,  exercise this Warrant in whole or in part and, in lieu of
making the cash payment  otherwise  contemplated  to be made to the Company upon
such  exercise in payment of the  Aggregate  Exercise  Price,  elect  instead to
receive upon such exercise the "Net Number" of shares of Common Stock determined
according to the following formula (a "Cashless Exercise"):

                        Net Number = (A X B) - (A X C)
                                -----------------
                                        B

      For purposes of the foregoing formula:

      A=    the total  number of shares  with  respect to which this  Warrant is
            then being exercised

      B=    the  Closing  Sale  Price  of  the  Common  Stock  (as  reported  by
            Bloomberg)  on  the  date  immediately  preceding  the  date  of the
            Exercise Notice.

      C=    the Exercise Price then in effect for the applicable  Warrant Shares
            at the time of such exercise.

<PAGE>

      (e)  DISPUTES.  In the case of a dispute  as to the  determination  of the
Exercise Price or the arithmetic  calculation of the Warrant Shares, the Company
shall  promptly  issue to the Holder the number of Warrant  Shares  that are not
disputed and resolve such dispute in accordance with Section 12.

2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES.

      The Exercise Price and the number of Warrant Shares shall be adjusted from
time to time as follows:

      (a) ADJUSTMENT  UPON ISSUANCE OF COMMON STOCK. If and whenever on or after
the  Settlement  Date,  which  shall be the date when this  Warrant is placed in
escrow  pursuant  to the Escrow  Agreement  of even date  herewith,  the Company
issues or sells,  or in accordance  with this Section 2 is deemed to have issued
or sold, any shares of Common Stock (including the issuance or sale of shares of
Common  Stock owned or held by or for the  account of the Company but  excluding
Excluded Securities, for a consideration per share (the "New Securities Issuance
Price") less than a price (the  "Applicable  Price") equal to the Exercise Price
in effect immediately prior to such time (the foregoing, a "Dilutive Issuance"),
then  immediately  after such issue or sale,  the Exercise  Price then in effect
shall be reduced to an amount equal to the New Securities  Issuance Price.  Upon
each such  adjustment  of the Exercise  Price  hereunder,  the number of Warrant
Shares shall be adjusted to the number of shares of Common Stock  determined  by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the  number  of  Warrant  Shares   acquirable  upon  exercise  of  this  Warrant
immediately  prior to such  adjustment  and dividing the product  thereof by the
Exercise Price resulting from such  adjustment.  For purposes of determining the
adjusted  Exercise  Price  under  this  Section  2(a),  the  following  shall be
applicable:

            (i)  ISSUANCE  OF OPTIONS.  If the  Company in any manner  grants or
sells any Options  and the lowest  price per share for which one share of Common
Stock is  issuable  upon the  exercise  of any such  Option or upon  conversion,
exercise or exchange of any Convertible Securities issuable upon exercise of any
such Option is less than the Applicable  Price,  then such share of Common Stock
shall be  deemed  to be  outstanding  and to have  been  issued  and sold by the
Company at the time of the  granting  or sale of such  Option for such price per
share.  For purposes of this Section  2(a)(i),  the "lowest  price per share for
which one share of Common  Stock is issuable  upon  exercise of such  Options or
upon conversion,  exercise or exchange of such Convertible  Securities" shall be
equal to the sum of the lowest  amounts of  consideration  (if any)  received or
receivable by the Company with respect to any one share of Common Stock upon the
granting or sale of the Option, upon exercise of the Option and upon conversion,
exercise or exchange of any Convertible  Security issuable upon exercise of such
Option. No further  adjustment of the Exercise Price or number of Warrant Shares
shall  be made  upon  the  actual  issuance  of  such  Common  Stock  or of such
Convertible  Securities  upon the  exercise  of such  Options or upon the actual
issuance  of such  Common  Stock upon  conversion,  exercise or exchange of such
Convertible Securities.

            (ii)  ISSUANCE  OF  CONVERTIBLE  SECURITIES.  If the  Company in any
manner issues or sells any Convertible Securities and the lowest price per share
for which one share of Common Stock is issuable upon the conversion, exercise or
exchange  thereof is less than the Applicable  Price,  then such share of Common
Stock shall be deemed to be outstanding  and to have been issued and sold by the
Company at the time of the issuance or sale of such  Convertible  Securities for
such price per share.  For the  purposes of this Section  2(a)(ii),  the "lowest
price  per share for  which  one  share of  Common  Stock is  issuable  upon the
conversion,  exercise  or  exchange"  shall be  equal  to the sum of the  lowest
amounts of  consideration  (if any)  received or  receivable by the Company with
respect  to one  share  of  Common  Stock  upon  the  issuance  or  sale  of the
Convertible  Security  and upon the  conversion,  exercise  or  exchange of such
Convertible  Security.  No further adjustment of the Exercise Price or number of
Warrant Shares shall be made upon the actual  issuance of such Common Stock upon
conversion, exercise or exchange of such Convertible Securities, and if any such
issue  or sale of such  Convertible  Securities  is made  upon  exercise  of any
Options for which  adjustment of this Warrant has been or is to be made pursuant
to other provisions of this Section 2(a), no further  adjustment of the Exercise
Price or number of Warrant Shares shall be made by reason of such issue or sale.

<PAGE>

            (iii) CHANGE IN OPTION PRICE OR RATE OF CONVERSION.  If the purchase
price provided for in any Options, the additional consideration, if any, payable
upon the issue, conversion,  exercise or exchange of any Convertible Securities,
or the  rate  at  which  any  Convertible  Securities  are  convertible  into or
exercisable or exchangeable for Common Stock increases or decreases at any time,
the  Exercise  Price and the number of  Warrant  Shares in effect at the time of
such increase or decrease shall be adjusted to the Exercise Price and the number
of Warrant  Shares which would have been in effect at such time had such Options
or  Convertible  Securities  provided for such  increased or decreased  purchase
price,  additional  consideration or increased or decreased  conversion rate, as
the case may be, at the time initially granted,  issued or sold. For purposes of
this Section 2(a)(iii),  if the terms of any Option or Convertible Security that
was  outstanding  as of the date of issuance of this  Warrant are  increased  or
decreased in the manner described in the immediately  preceding  sentence,  then
such Option or  Convertible  Security and the Common Stock deemed  issuable upon
exercise,  conversion or exchange thereof shall be deemed to have been issued as
of the date of such increase or decrease. No adjustment pursuant to this Section
2(a)  shall  be made if such  adjustment  would  result  in an  increase  of the
Exercise Price then in effect or a decrease in the number of Warrant Shares.

            (iv)  CALCULATION OF CONSIDERATION  RECEIVED.  In case any Option is
issued in connection with the issue or sale of other  securities of the Company,
together   comprising   one   integrated   transaction   in  which  no  specific
consideration is allocated to such Options by the parties  thereto,  the Options
will be deemed to have been issued for a  consideration  of $0.01. If any shares
of Common Stock, Options or Convertible  Securities are issued or sold or deemed
to have been issued or sold for cash, the  consideration  received therefor will
be deemed to be the net amount received by the Company  therefor.  If any shares
of Common  Stock,  Options or  Convertible  Securities  are issued or sold for a
consideration other than cash, the amount of such consideration  received by the
Company  will  be the  fair  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 Closing  Sale Price of such  security on the
date  of  receipt.  If any  shares  of  Common  Stock,  Options  or  Convertible
Securities  are issued to the owners of the  non-surviving  entity in connection
with any merger in which the  Company  is the  surviving  entity,  the amount of
consideration  therefor  will be deemed to be the fair value of such  portion of
the net assets and business of the  non-surviving  entity as is  attributable to
such shares of Common Stock, Options or Convertible Securities,  as the case may
be. The fair value of any  consideration  other than cash or securities  will be
determined  in good faith  jointly by the Company and the Required  Holders.  If
such holders and the Company are unable to reach agreement within ten days after
the occurrence of an event requiring valuation (the "Valuation Event"), the fair
value of such  consideration  will be determined  within  fifteen  Business Days
after the tenth day following the Valuation Event by an  independent,  reputable
appraiser  jointly  selected  by the  Company  and  the  Required  Holders.  The
determination  of such  appraiser  shall be final and  binding  upon all parties
absent manifest error and the fees and expenses of such appraiser shall be borne
by the Company.

<PAGE>

            (v) RECORD  DATE.  If the  Company  takes a record of the holders of
Common  Stock for the  purpose of  entitling  them (A) to receive a dividend  or
other distribution payable in Common Stock, Options or in Convertible Securities
or (B) to  subscribe  for or  purchase  Common  Stock,  Options  or  Convertible
Securities,  then such record date will be deemed to be the date of the issue or
sale of the shares of Common  Stock  deemed to have been issued or sold upon the
declaration  of such  dividend or the making of such other  distribution  or the
date of the  granting of such right of  subscription  or  purchase,  as the case
maybe.

      (b) ADJUSTMENT  UPON  SUBDIVISION  OR COMBINATION OF COMMON STOCK.  If the
Company at any time on or after the  Settlement  Date  subdivides  (by any stock
split, stock dividend, recapitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect  immediately  prior to such subdivision will be  proportionately
reduced and the number of Warrant Shares will be proportionately  increased.  If
the  Company  at any  time  on or  after  the  Subscription  Date  combines  (by
combination,  reverse  stock  split or  otherwise)  one or more  classes  of its
outstanding shares of Common Stock into a smaller number of shares, the Exercise
Price in effect  immediately  prior to such combination will be  proportionately
increased and the number of Warrant  Shares will be  proportionately  decreased.
Any  adjustment  under this Section 2(b) shall become  effective at the close of
business on the date the subdivision or combination becomes effective.

      (c) OTHER  EVENTS.  If any event  occurs of the type  contemplated  by the
provisions of this Section 2 but not expressly  provided for by such  provisions
(including,  without  limitation,  the  granting of stock  appreciation  rights,
phantom stock rights or other rights with equity  features),  then the Company's
Board of Directors will make an appropriate adjustment in the Exercise Price and
the number of so as to protect the rights of the Holder;  provided  that no such
adjustment  pursuant to this  Section 2(c) will  increase the Exercise  Price or
decrease the number of Warrant Shares as otherwise  determined  pursuant to this
Section 2.

3. RIGHTS UPON DISTRIBUTION OF ASSETS.

      If the Company shall declare or make any dividend or other distribution of
its assets (or rights to acquire its assets) to holders of Common Stock,  by way
of  return  of  capital  or  otherwise  (including,   without  limitation,   any
distribution of cash, stock or other securities, property or options by way of a
dividend,  spin  off,  reclassification,   corporate  rearrangement,  scheme  of
arrangement or other similar transaction) (a "Distribution"),  at any time after
the issuance of this Warrant, then, in each such case:

<PAGE>

      (a) any  Exercise  Price  in  effect  immediately  prior  to the  close of
business  on the record  date fixed for the  determination  of holders of Common
Stock entitled to receive the Distribution shall be reduced, effective as of the
close of business on such record date, to a price determined by multiplying such
Exercise  Price by a fraction  of which (i) the  numerator  shall be the Closing
Sale Price of the Common  Stock on the trading day  immediately  preceding  such
record date minus the value of the  Distribution (as determined in good faith by
the Company's Board of Directors)  applicable to one share of Common Stock,  and
(ii) the denominator  shall be the Closing Sale Price of the Common Stock on the
trading day immediately preceding such record date; and

      (b) the number of Warrant  Shares shall be increased to a number of shares
equal to the number of shares of Common Stock  obtainable  immediately  prior to
the close of business on the record date fixed for the  determination of holders
of  Common  Stock  entitled  to  receive  the  Distribution  multiplied  by  the
reciprocal of the fraction set forth in the immediately preceding paragraph (a);
provided  that in the event that the  Distribution  is of common  stock  ("Other
Common  Stock ") of a  company  whose  common  stock  is  traded  on a  national
securities  exchange or a national automated  quotation system,  then the Holder
may elect to  receive a warrant to  purchase  Other  Common  Stock in lieu of an
increase in the number of Warrant Shares,  the terms of which shall be identical
to those of this Warrant, except that such warrant shall be exercisable into the
number of shares of Other  Common  Stock  that  would  have been  payable to the
Holder  pursuant  to the  Distribution  had the Holder  exercised  this  Warrant
immediately prior to such record date and with an aggregate exercise price equal
to the  product of the amount by which the  exercise  price of this  Warrant was
decreased  with  respect  to  the  Distribution  pursuant  to the  terms  of the
immediately  preceding paragraph (a) and the number of Warrant Shares calculated
in accordance with the first part of this paragraph (b).

4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTION.

      (a) PURCHASE RIGHTS. In addition to any adjustments  pursuant to Section 2
above,  if at any  time  the  Company  grants,  issues  or  sells  any  Options,
Convertible  Securities  or rights to purchase  stock,  warrants,  securities or
other  property pro rata to the record holders of any class of Common Stock (the
"Purchase Rights"),  then the Holder will be entitled to acquire, upon the terms
applicable to such Purchase  Rights,  the aggregate  Purchase  Rights which such
holder  could  have  acquired  if such  holder  had held the number of shares of
Common Stock  acquirable upon complete  exercise of this Warrant (without regard
to any limitations on the exercise of this Warrant)  immediately before the date
on which a record  is taken for the  grant,  issuance  or sale of such  Purchase
Rights,  or, if no such record is taken, the date as of which the record holders
of  Common  Stock  are to be  determined  for the  grant,  issue or sale of such
Purchase Rights.

      (b) FUNDAMENTAL TRANSACTIONS. The Company shall not enter into or be party
to a Fundamental  Transaction unless (i) the Successor Entity assumes in writing
all of the  obligations  of the Company under this Warrant and the other Related
Agreements  (as defined in the  Settlement  Agreement)  in  accordance  with the
provisions  of this  Section  4(b)  pursuant to written  agreements  in form and
substance  satisfactory  to the  Required  Holders and  approved by the Required
Holders prior to such  Fundamental  Transaction  and (ii) the  Successor  Entity
(including  its Parent  Entity) is a publicly  traded  corporation  whose common
stock  is  quoted  on  or  listed  for  trading  on  an  Eligible  Market.  Upon
consummation of the Fundamental Transaction,  the Successor Entity shall deliver
to the holder of this  Warrant in  exchange  therefor,  a warrant  substantially
identical in form and substance to this Warrant, except that that there shall be
issuable upon exercise of such warrant at any time after the consummation of the
Fundamental  Transaction but prior to the Expiration Date, in lieu of the shares
of the  Company's  Common  Stock (or  other  securities,  cash,  assets or other
property) purchasable upon the exercise of the Warrant prior to such Fundamental
Transaction,  such  shares  of  stock,  securities,  cash,  assets  or any other
property  whatsoever  (including  warrants  or other  purchase  or  subscription
rights)  which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had the Warrant been exercised immediately prior
to such Fundamental  Transaction,  as adjusted in accordance with the provisions
of this Warrant. Provisions made pursuant to this Section shall be in a form and
substance  satisfactory to the Required Holders.  The provisions of this Section
shall apply  similarly and equally to successive  Fundamental  Transactions  and
shall be applied  without  regard to any  limitations  on the  exercise  of this
Warrant.

<PAGE>

5. NON-CIRCUMVENTION.

      The Company  hereby  covenants  and agrees  that the Company  will not, by
amendment  of  its  Articles  of  Incorporation  , as  amended  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,  and will at all
times in good faith carry out all the  provisions  of this  Warrant and take all
action as may be required to protect the rights of the Holder.  Without limiting
the generality of the foregoing, the Company (i) will not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant above
the  Exercise  Price then in effect,  (ii) will take all such  actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and  nonassessable  shares of Common  Stock upon the exercise of this
Warrant, and (iii) will, so long as this Warrant is outstanding, take all action
necessary  to reserve and keep  available  out of its  authorized  and  unissued
Common Stock,  solely for the purpose of effecting the exercise of this Warrant,
130% of the  number  of shares  of  Common  Stock as shall  from time to time be
necessary  to  effect  the  exercise  of this  Warrant  (without  regard  to any
limitations on exercise).

6. WARRANT HOLDER NOT DEEMED A STOCKHOLDER.

      Except as otherwise  specifically  provided herein, the Holder,  solely in
such  Person's  capacity as a holder,  of this Warrant  shall not be entitled to
vote or receive  dividends  or be deemed the holder of shares of the Company for
any purpose, nor shall anything contained in this Warrant be construed to confer
upon the Holder,  solely in such Person's  capacity as a holder of this Warrant,
any of the rights of a stockholder of the Company or any right to vote,  give or
withhold consent to any corporate action (whether any  reorganization,  issue of
stock,   reclassification  of  stock,   consolidation,   merger,  conveyance  or
otherwise),  receive  notice of  meetings,  receive  dividends  or  subscription
rights, or otherwise,  prior to the issuance to the Holder of the Warrant Shares
which such  Person is then  entitled  to receive  upon the due  exercise of this
Warrant.  In addition,  nothing  contained in this Warrant shall be construed as
imposing  any  liabilities  on such  Holder to  purchase  any  securities  (upon
exercise of this  Warrant or  otherwise)  or as a  stockholder  of the  Company,
whether  such  liabilities  are  asserted by the Company or by  creditors of the
Company.  Notwithstanding  this  Section 6, the Company  will provide the Holder
with copies of the same notices and other  information given to the stockholders
of the  Company  generally,  contemporaneously  with the  giving  thereof to the
stockholders.

<PAGE>

7. REISSUANCE OF WARRANTS.

      (a)  TRANSFER OF WARRANT.  The Holder may  transfer  this  Warrant and the
rights  hereunder only in accordance  with applicable  securities  laws. If this
Warrant is to be  transferred,  the Holder shall  surrender  this Warrant to the
Company,  whereupon the Company will forthwith  issue and deliver upon the order
of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may  request,  representing  the right to purchase  the number of Warrant
Shares  being  transferred  by the Holder and, if less then the total  number of
Warrant Shares then underlying this Warrant is being transferred,  a new Warrant
(in  accordance  with  Section  7(d)) to the  Holder  representing  the right to
purchase the number of Warrant Shares not being transferred.

      (b) LOST,  STOLEN OR  MUTILATED  WARRANT.  Upon  receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft,  destruction
or mutilation of this Warrant,  and, in the case of loss,  theft or destruction,
of any  indemnification  undertaking  by the Holder to the Company in  customary
form,  in the  case of  mutilation,  upon  surrender  and  cancellation  of this
Warrant,  the Company  shall execute and deliver to the Holder a new Warrant (in
accordance  with Section  7(d))  representing  the right to purchase the Warrant
Shares then underlying this Warrant.

      (c)  WARRANT   EXCHANGEABLE  FOR  MULTIPLE   WARRANTS.   This  Warrant  is
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company,  for a new Warrant or Warrants (in  accordance  with Section  7(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase  such portion of such Warrant  Shares as is designated by the Holder
at the  time  of  such  surrender;  provided,  however,  that  no  Warrants  for
fractional shares of Common Stock shall be given.

      (d) ISSUANCE OF NEW WARRANTS.  Whenever the Company is required to issue a
new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be
of like tenor with this Warrant, (ii) shall represent,  as indicated on the face
of such new Warrant,  the right to purchase the Warrant  Shares then  underlying
this Warrant (or in the case of a new Warrant  being issued  pursuant to Section
7(a) or Section 7(c),  the Warrant Shares  designated by the Holder which,  when
added to the number of shares of Common Stock  underlying the other new Warrants
issued in connection  with such issuance,  does not exceed the number of Warrant
Shares then  underlying  this  Warrant),  (iii) shall have an issuance  date, as
indicated  on the face of such  new  Warrant  which is the same as the  Issuance
Date, and (iv) shall have the same rights and conditions as this Warrant.

8. NOTICES.

      Whenever  notice  is  required  to be given  under  this  Warrant,  unless
otherwise provided herein, such notice shall be given in accordance with Section
20.14 of the  Settlement  Agreement.  The Company  shall provide the Holder with
prompt written  notice of all actions taken pursuant to this Warrant,  including
in  reasonable  detail a  description  of such action and the reason  therefore.
Without limiting the generality of the foregoing,  the Company will give written
notice to the Holder (i) promptly upon any  adjustment of the Exercise  Price or
number  of  Warrant  Shares or number  or kind of  securities  purchasable  upon
exercise of this Warrant,  setting forth in reasonable  detail,  and certifying,
the facts  requiring such  adjustment and the calculation of such adjustment and
(ii) at least  fifteen  days prior to the date on which the  Company  closes its
books or takes a record (A) with  respect to any dividend or  distribution  upon
the  Common  Stock,  (B) with  respect  to any  grants,  issues  or sales of any
Options,   Convertible   Securities  or  rights  to  purchase  stock,  warrants,
securities or other  property to holders of Common Stock or (C) for  determining
rights to vote with  respect  to any  Fundamental  Transaction,  dissolution  or
liquidation,  provided in each case that such information shall be made known to
the public prior to or in  conjunction  with such notice  being  provided to the
Holder.

<PAGE>

9. AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions of
this  Warrant  may be  amended  and the  Company  may  take  any  action  herein
prohibited,  or omit to perform any act herein  required to be  performed by it,
only if the Company has  obtained the written  consent of the Required  Holders;
provided that no such action may increase the exercise  price of this Warrant or
decrease the number of shares or class of stock obtainable upon exercise of this
Warrant  without the written  consent of the Holder.  No such amendment shall be
effective  to the extent that it applies to less than all of the holders of this
Warrant  and all new  Warrants  issued  pursuant  to  Section  7 which  are then
outstanding.

10.  GOVERNING  LAW.  This Warrant shall be construed and enforced in accordance
with, and all questions  concerning the construction,  validity,  interpretation
and  performance  of this warrant shall be governed by, the internal laws of the
State of Illinois, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other  jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois.

11. CONSTRUCTION;  HEADINGS.  This Warrant shall be deemed to be jointly drafted
by the Company and the Holder and shall not be  construed  against any person as
the  drafter  hereof.  The  headings  of this  Warrant  are for  convenience  of
reference  and shall not form part of, or affect  the  interpretation  of,  this
Warrant.

12. DISPUTE RESOLUTION.

      (a) In the  case of a  dispute  as to the  arithmetic  calculation  of the
Exercise Price or the arithmetic  calculation of the Warrant Shares, the Company
shall submit the  disputed  arithmetic  calculations  via  facsimile  within two
Business Days of receipt of the Exercise Notice giving rise to such dispute,  as
the case may be, to the Holder.  The Holder and the Company shall  determine the
correct  arithmetic  calculation  within three  Business  days of such  disputed
arithmetic  calculation  being transmitted to such holder. If the Holder and the
Company are unable to agree upon correct arithmetic  calculation of the Exercise
Price or the Warrant Shares within such time, then the Company shall, within two
Business Days submit via facsimile the disputed  calculation to an  independent,
reputable nationally  recognized accounting firm selected jointly by the Company
and the Holder.  The  Company  shall  cause the  accounting  firm to perform the
calculation  and notify the  Company and the Holder of the results no later than
ten  Business  Days from the time it receives  the  disputed  determinations  or
calculations.  Such accounting  firm's  determination  shall be binding upon all
parties absent manifest error.

<PAGE>

      (b) In the case of a dispute as to the  determination of fair market value
of a security to determine  the  Exercise  Price,  the Company  shall submit the
disputed  determination via facsimile within two Business Days of receipt of the
Exercise Notice giving rise to such dispute,  as the case may be, to the Holder.
If the Holder and the  Company  are unable to agree upon such  determination  or
calculation  of the Exercise  Price or the Warrant  Shares within three Business
Days of such  disputed  determination  being  submitted to the Holder,  then the
Company  shall,  within two  Business  Days submit via  facsimile  the  disputed
determination of the Exercise Price to an independent, reputable investment bank
selected  jointly by the  Company and the  Holder.  The Company  shall cause the
investment  bank  or  the  accountant,  as the  case  may  be,  to  perform  the
determinations  and notify the  Company  and the Holder of the  results no later
than ten Business days from the time it receives the disputed  determinations or
calculations.  Such investment  bank's  determination  shall be binding upon all
parties absent demonstrable error.

      (c) The fees and expenses  associated with the determinations made by such
investment bank or accountant shall be paid by the Company.

13. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.

      The remedies  provided in this Warrant shall be cumulative and in addition
to all  other  remedies  available  under  this  Warrant  or any  other  Related
Agreement  (as  defined  in the  Settlement  Agreement),  at  law  or in  equity
(including a decree of specific performance and/or other injunctive relief), and
nothing  herein  shall  limit the right of the holder of this  Warrant to pursue
actual  damages  for any failure by the Company to comply with the terms of this
Warrant.  The  Company  acknowledges  that a  breach  by it of  its  obligations
hereunder will cause  irreparable  harm to the Holder and that the remedy at law
for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened  breach, the holder of this Warrant shall
be  entitled,  in addition to all other  available  remedies,  to an  injunction
restraining  any breach,  without the  necessity  of showing  economic  loss and
without any bond or other security being required.

14.  TRANSFER.  This  Warrant  may be offered  for sale,  sold,  transferred  or
assigned  without the consent of the Company,  subject to applicable  securities
laws.

15. CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall
have the following meanings:

      (a) "BLOOMBERG" means Bloomberg Financial Markets.

      (b) "BUSINESS DAY" means any day other than Saturday,  Sunday or other day
on which  commercial banks in The City of New York are authorized or required by
law to remain closed.

<PAGE>

      (c) "CLOSING BID PRICE" and "CLOSING SALE PRICE"  means,  for any security
as of any  date,  the last  closing  bid  price and last  closing  trade  price,
respectively,  for  such  security  on the  Principal  Market,  as  reported  by
Bloomberg,  or, if the Principal  Market begins to operate on an extended  hours
basis and does not  designate  the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade  price,  respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal  securities exchange or trading
market  for such  security,  the last  closing  bid price or last  trade  price,
respectively,  of such security on the principal  securities exchange or trading
market where such security is listed or traded as reported by  Bloomberg,  or if
the  foregoing  do not apply,  the last  closing bid price or last trade  price,
respectively,  of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade  price,  respectively,  is  reported  for such  security  by
Bloomberg,  the average of the bid prices, or the ask prices,  respectively,  of
any market  makers for such  security as  reported in the "pink  sheets" by Pink
Sheets LLC (formerly the National  Quotation  Bureau,  Inc.). If the Closing Bid
Price or the  Closing  Sale  Price  cannot be  calculated  for a  security  on a
particular  date on any of the  foregoing  bases,  the  Closing Bid Price or the
Closing Sale Price,  as the case may be, of such  security on such date shall be
the fair market value as mutually  determined by the Company and the Holder.  If
the  Company  and the Holder are unable to agree upon the fair  market  value of
such security,  then such dispute shall be resolved  pursuant to Section 12. All
such determinations to be appropriately  adjusted for any stock dividend,  stock
split,  stock  combination  or other similar  transaction  during the applicable
calculation period.

      (d) "COMMON  STOCK" means (i) the Company's  common stock,  par value .001
per share,  and (ii) any capital  stock into which such Common  Stock shall have
been changed or any capital  stock  resulting  from a  reclassification  of such
Common Stock.

      (e)  "CONVERTIBLE  SECURITIES"  means any stock or securities  (other than
Options) directly or indirectly  convertible into or exercisable or exchangeable
for Common Stock.

      (f)  "ELIGIBLE  MARKET"  means the  Principal  Market,  The New York Stock
Exchange, Inc., the Nasdaq National Market or The Nasdaq SmallCap Market.

      (g) "EXCLUDED  SECURITIES"  means the following  securities  issued by the
Company  or deemed to be issued by the  Company  pursuant  to  Section 2 of this
Warrant:  those  excluded  securities in both the Sunrise  Investors and Sunrise
Securities  Corp.'s  Warrants  as  amended  by  paragraphs  9.2  and  9.3 of the
Settlement Agreement.

      (h)  "EXPIRATION  DATE" means the date sixty months after the Closing Date
(as defined in the  Settlement  Agreement  or, if such date falls on a day other
than a Business  Day or on which  trading  does not take place on the  Principal
Market (a "HOLIDAY"), the next date that is not a Holiday.

      (i) "FUNDAMENTAL  TRANSACTION"  means that the Company shall,  directly or
indirectly,  in one or more related transactions,  (i) consolidate or merge with
or into  (whether  or not the  Company  is the  surviving  corporation)  another
Person, or (ii) sell,  assign,  transfer,  convey or otherwise dispose of all or
substantially  all of the properties or assets of the Company to another Person,
or (iii) allow another Person to make a purchase,  tender or exchange offer that
is  accepted by the  holders of more than the 50% of the  outstanding  shares of
Common  Stock (not  including  any shares of Common  Stock held by the Person or
Persons making or party to, or associated or affiliated  with the Persons making
or party to, such  purchase,  tender or exchange  offer),  or (iv)  consummate a
stock  purchase  agreement or other  business  combination  (including,  without
limitation,   a   reorganization,   recapitalization,   spin-off  or  scheme  of
arrangement)  with another Person  whereby such other Person  acquires more than
the 50% of the  outstanding  shares of Common Stock (not including any shares of
Common  Stock held by the other Person or other  Persons  making or party to, or
associated or affiliated  with the other Persons  making or party to, such stock
purchase   agreement  or  other  business   combination),   or  (v)  reorganize,
recapitalize or reclassify its Common Stock.

<PAGE>

      (j)  "OPTIONS"  means any rights,  warrants or options to subscribe for or
purchase Common Stock or Convertible Securities.

      (k)  "PARENT  ENTITY"  of a  Person  means an  entity  that,  directly  or
indirectly,  controls the applicable Person and whose common stock or equivalent
equity security is quoted or listed on an Eligible Market,  or, if there is more
than one such  Person or Parent  Entity,  the Person or Parent  Entity  with the
largest  public  market  capitalization  as of the date of  consummation  of the
Fundamental Transaction.

      (l)  "PERSON"  means  an  individual,   a  limited  liability  company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization,  any other entity and a  government  or any  department  or agency
thereof.

      (m) "PRINCIPAL MARKET" means the principal exchange or market on which the
Common Stock is listed and trades, which initially is the OTC Bulletin Board.

      (n) "REGISTRATION RIGHTS AGREEMENT" means that certain registration rights
agreement by and between the Company and Holder.

      (o) "REQUIRED  HOLDERS" means the holders of this Warrant  representing at
least a majority  of the shares of Common  Stock  underlying  the  Warrant  then
outstanding.

      (p) "SUCCESSOR ENTITY" means the Person, which may be the Company,  formed
by,  resulting from or surviving any Fundamental  Transaction or the Person with
which such Fundamental  Transaction shall have been made,  provided that if such
Person is not a publicly  traded entity whose common stock or equivalent  equity
security is quoted or listed for trading on an Eligible Market, Successor Entity
shall mean such Person's Parent Entity.

16.  REGISTRATION  RIGHTS.  The  registration  rights of the  Holder  (including
Holders'  successors) with respect to the Warrant Shares will be as set forth in
the Registration Rights Agreement.

      IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common
Stock to be duly executed as of the Issuance Date set out above.

TECHALT, INC., a Nevada corporation

By:      __________________________
         Name:  James E. Solomon
         Title: President and CEO

<PAGE>

                                    EXHIBIT A

                                 EXERCISE NOTICE

            TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

                        WARRANT TO PURCHASE COMMON STOCK

                                  TECHALT, INC.

      The   undersigned   holder   hereby   exercises   the  right  to  purchase
_________________  of the shares of Common Stock ("WARRANT  SHARES") of TechAlt,
Inc., a Nevada corporation (formerly known as Dendo Global Corp (the "Company"),
evidenced by the  attached  Warrant to Purchase  Common  Stock (the  "WARRANT").
Capitalized  terms  used  herein  and  not  otherwise  defined  shall  have  the
respective meanings set forth in the Warrant.

      1. Form of Exercise Price. The Holder intends that payment of the Exercise
Price shall be made as:

      _______ a "CASH EXERCISE" with respect to _________ Warrant Shares; and/or

      _______ a "CASHLESS EXERCISE" with respect to _________ Warrant Shares.

      2. Payment of Exercise  Price.  In the event that the holder has elected a
Cash  Exercise  with  respect to some or all of the Warrant  Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of
___________________ to the Company in accordance with the terms of the Warrant.

      3. Accredited Investor.  The Holder is an "accredited investor" as defined
in Rule 501(c) under the Securities Act of 1933, as amended.

      4.  Delivery of Warrant  Shares.  The Company  shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

<PAGE>

Date: _______________ __, ______

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

Name of Registered Holder:

By: ________________________
         Name:

Title: ______________________

                                 ACKNOWLEDGMENT

      The Company hereby  acknowledges  this Exercise  Notice and hereby directs
OTC Stock Transfer Inc. to issue the above indicated  number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated  _______________,
2004 from the Company and acknowledged and agreed to by OTC Stock Transfer Inc..

TECHALT, INC.

By: ------------------------------------
Name:  James E. Solomon
Title: President and CEO

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