Document:

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                                                                   Exhibit 10.39

THE SHARES BEING SUBSCRIBED FOR HEREIN HAVE NOT BEEN REGISTERED WITH THE UNITED
STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED, (THE "1933 ACT") OR THE SECURITIES COMMISSION OF ANY STATE UNDER ANY
STATE SECURITIES LAW. THEY ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM
REGISTRATION PURSUANT TO SECTION 4(2) OF THE 1933 ACT. THE SHARES MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THE SHARES ARE REGISTERED UNDER
THE 1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL IS
OBTAINED WHICH IS REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH OFFERS, SALES
AND TRANSFERS MAY BE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THOSE LAWS.

                            STOCK PURCHASE AGREEMENT

                   THIS STOCK PURCHASE AGREEMENT (the "Agreement") is made as of
the 25th day of October, 2000, by and between Bionutrics, Inc., a Nevada
corporation (the "Company"), and Tamarack International Limited (the
"Investor").

THE PARTIES HEREBY AGREE AS FOLLOWS:

         1.        Purchase and Sale of Stock.

                   1.1 Sale and Issuance of Stock. On the basis of the
representations, warranties and agreements contained herein and subject to the
terms and conditions herein set forth, the Company agrees to issue and sell
500,000 (five hundred thousand) shares of its Common Stock, $.001 par value, at
$1.00 per share (the "Shares"), and the Investor hereby subscribes for and
agrees to purchase the Shares upon acceptance of this Agreement by the Company.

                   1.2 Payment. Investor is delivering with this Agreement the
full amount of the purchase price of the Shares in the amount of $500,000 in
U.S. funds by wire transfer as directed by the Company to the Company's
designated escrow account. Such funds deposited into the escrow account on
behalf of the Investor shall be held until the conditions for the Closing of the
offering have been met.

                   1.3 Closing. The closing of the transaction contemplated by
this Agreement (the "Closing") shall be deemed to have occurred when this
Agreement has been executed by both the Investor and the Company and payment
shall have been made as set forth in 1.2 above in consideration for the
Company's delivery into the escrow account of certificates representing the
Shares subscribed for. If at the Closing any of the conditions specified in
Section 6 hereof shall not have been fulfilled to the reasonable satisfaction of
Investor, then Investor shall, at its election, be relieved of all of its
obligations under this Agreement, without thereby waiving any other rights it
may have by reason of such failure or unfulfillment. If at the Closing any of
the conditions specified in Section 5 hereof shall not have been fulfilled to
the reasonable satisfaction of the Company, the Company shall, at its election,
be relieved of all of its
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obligations under this Agreement, without thereby waiving any other rights it
may have by reason of such failure or unfulfillment.

         2.        Representation and Warranties of the Company.  The Company
hereby represents and warrants to the Investor as follows:

                   2.1 Organization, Good Standing and Qualification. The
Company is a corporation validly existing and in good standing under the laws of
the State of Nevada and has all requisite power and authority to own or lease
and operate its properties and assets and to carry on its business as now
conducted. The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify would have a
material adverse effect on its business, operations, prospects, condition
(financial or other), or properties.

                  2.2 Capitalization. The authorized capital of the Company
consists of:

                           (i) Common Stock. 45,000,000 shares of common stock
("Common Stock"), par value $.001, of which 20,936,252 shares are issued and
outstanding as of August 31, 2000.

                           (ii) Preferred Stock. 5,000,000 shares of preferred
stock ("Preferred Stock"), par value $.001, none of which is outstanding. The
Preferred Stock may be issued from time to time in one or more series and the
Board of Directors is authorized to fix the rights and terms relating to
dividends, conversion, voting, redemption, liquidation preferences and any other
rights, preferences, privileges and restrictions applicable to each such series.

                           (iii) Warrants, Options and Other Rights. There are
no preemptive rights or rights of first refusal for the purchase or acquisition
from the Company of any shares of its capital stock. As of August 31, 2000,
there were outstanding warrants to purchase up to 1,180,000 shares of Common
Stock. As of August 31, 2000, options in the amount of 2,121,144 shares were
outstanding and held by current or former employees, officers and directors
pursuant to the Company's Stock Option Plan and 386,667 were outstanding and
held by others.

                   2.3 Valid Issuance of Shares. All of the outstanding shares
of the Company's stock have been duly and validly authorized and issued, are
fully paid and nonassessable, and no further approval or authority of the
stockholders or the directors of the Company will be required by the Company for
the issuance of the Shares. The Shares when issued and paid for in accordance
with the terms of this Agreement will be duly and validly issued, fully paid and
nonassessable and will be free of restrictions on transfer other than
restrictions on transfer under applicable state and federal securities laws.

                   2.4 Financial Statements. Except as otherwise stated in the
notes thereto, the audited financial statements contained in the Form 10-K for
the year ended October 31, 1999 and the unaudited financial statements contained
in the Forms 10-Q filed subsequent thereto have been prepared in conformity with
United States generally accepted accounting principles applied, except as stated
therein, on a consistent basis. The financial statements fairly present the
financial position and result of operations and changes in financial position of
the Company as of the dates and for the periods indicated.

         Except as reflected in such financial statements and the notes thereto,
the Company has no liabilities, absolute or contingent, material to the
operations, business, prospects, assets, properties or

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condition (financial or other) of the Company, other than (i) ordinary course
liabilities incurred since the last date of such financial statements in
connection with the conduct of the business of the Company, and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and
not required under United States generally accepted accounting principles to be
reflected in the financial statements, which, in both cases, individually or in
the aggregate, are not material to the financial condition or operating results
of the Company.

                   2.5 No Conflict with Other Instruments. Neither the sale of
the Shares nor the consummation of the transactions herein contemplated, will:
(i) conflict with or constitute a breach of, permit the termination of,
constitute a default under, or violation of (A) the Articles of Incorporation,
as amended, or bylaws of the Company, (B) any material agreement, indenture,
mortgage, deed of trust or other material instrument or agreement or undertaking
by which the Company is bound or to which any of its properties is subject, or,
(C) to the knowledge of the Company, a violation of any law, administrative
regulation, or court decree to which the properties or assets of the Company is
subject; or (ii) result in the creation or imposition of any material lien,
charge or encumbrance upon the property or assets of the Company.

                   2.6 Authorization. The Company has the corporate power and
authority to enter into this Agreement and to perform all of its obligations
hereunder. The execution, delivery and performance of this Agreement by the
Company have been duly authorized by all necessary corporate actions, and this
Agreement constitutes a legal, valid, binding and enforceable obligation of the
Company. No consent, approval, authorization or order of any court or
governmental agency or board or any other third party, or registration,
qualification, designation or filing with any Federal, state or local authority
is required to consummate the transactions contemplated by this Agreement.

         3.        Representations and Warranties of Investor.  By executing
this Agreement, Investor hereby represents and warrants to and covenants with
the Company as follows:

                   3.1 Authorization. Investor has the power and authority to
enter into this Agreement and to perform all of its obligations hereunder and
this Agreement constitutes a valid, binding and enforceable obligation of
Investor.

                   3.2 Legal Investment and Compliance with Laws. The purchase
of the Shares by Investor is legally permitted by all laws and regulations to
which Investor is subject and all consents, approvals, authorizations of or
designations, declarations, or filings in connection with the valid execution
and delivery of this Agreement by Investor or the purchase of the Shares by
Investor has been obtained, or will be obtained. Investor hereby represents that
it has satisfied itself as to the full observance of the laws of its
jurisdiction in connection with any invitation to subscribe for the Shares or
any use of this Agreement, including (i) any foreign exchange restrictions
applicable to such purchase, and (ii) the income tax and other tax consequences,
if any, which may be relevant to the purchase, holding, redemption, sale, or
transfer of the Shares. Such Investor's subscription and payment for, and its
continued beneficial ownership of the Shares, will not violate any applicable
securities or other laws of its jurisdiction.

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                   3.3 Access to Information. Investor acknowledges that it has
received the Company's Form 10-K for the period ended October 31, 1999 and the
Forms 10-Q filed subsequent thereto (the "Offering Documents"), and is familiar
with and understands the operations of the Company.

                           (a) Investor understands and acknowledges that the
Offering Documents provided in connection with this investment have been
prepared by the Company. Accordingly, Investor understands and acknowledges that
no independent investment banking firm or legal counsel have passed upon or
assumed any responsibility for the accuracy, completeness or fairness of the
information contained in the Offering Documents.

                           (b) Investor understands and acknowledges that any
financial projections provided in connection with this investment and have not
been prepared by independent accountants and are based on numerous assumptions
regarding sales, revenues and expenses and other factors which may not be
realized in the future.

                           (c) Investor acknowledges that it has been encouraged
to rely upon the advice of its legal counsel and accountants or other financial
advisers with respect to the financial, tax and other considerations relating to
the purchase of the Shares and has been offered, during the course of
discussions concerning the purchase of the Shares, the opportunity to ask such
questions and inspect such documents concerning the Company and its business and
affairs as Investor has requested so as to understand more fully the nature of
the investment and to verify the accuracy of the information supplied.

                           (d) Investor represents and warrants that, in
determining to purchase the Shares, it has relied solely upon the documents
provided and the advice of its advisors with respect to the tax, foreign and
U.S., and other consequences involved in purchasing the Shares.

                  3.4 Acquisition for Investment and Unregistered Nature of the
Shares.

                           (a) Investor represents and warrants that the Shares
being acquired are being acquired for its own account without a view to public
distribution or resale and that Investor has no contract, understanding,
agreement or arrangement to sell or otherwise transfer or dispose of the Shares
or any portion thereof to any other person.

                           (b) Investor represents and warrants that it (i) is
experienced in evaluating and investing in securities of companies in the
developmental stage and acknowledges that it can fend for itself, (ii) can bear
the economic risk of the purchase of the Shares including the total loss of its
investment, and (iii) has such knowledge and experience in business and
financial matters as to be capable of evaluating the merits and risks of an
investment in the Shares.

                           (c) Investor understands that the Shares have not
been registered under the 1933 Act, or the securities laws of any state and are
subject to substantial restrictions on resale or transfer.

                           (d) Investor agrees that it will not sell or
otherwise transfer or dispose of the Shares or any portion thereof unless such
Shares are registered under the 1933 Act and any applicable state securities
laws, or unless Investor obtains an opinion of counsel which is reasonably
satisfactory to the Company that such Shares may be sold in reliance on an
exemption from such registration requirements.

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                           (e) Investor understands that (i) the Company may
place a legend on any certificates representing the Shares indicating that the
Shares may not be transferred except in accordance with an exemption from the
1933 Act; (ii) the Company will not register a transfer not made in accordance
with an exemption from the 1933 Act; and (iii) Investor therefore may be
precluded from selling or otherwise transferring or disposing of any of the
Shares or any portion thereof for an indefinite period of time or at any
particular time.

                  3.5 Further Representations and Understandings.

                           (a) Investor understands that no federal or state
agency including the Securities and Exchange Commission, the Arizona Corporation
Commission or the securities commission or authorities of any other state has
approved or disapproved the Shares, passed upon or endorsed the merits of the
offering or the accuracy or adequacy of the documents, or made any finding or
determination as to the fairness of the Shares for public investment and any
representation to the contrary is a criminal offense.

                           (b) Investor understands that the Shares are being
offered and sold in reliance on specific exemptions or exclusions from the
registration requirements of federal and state laws and that the Company is
relying upon the truth and accuracy of the representations, warranties,
agreements, acknowledgments and understandings set forth herein in order to
determine the suitability of Investor to acquire the Shares.

                           (c) Investor represents and warrants that the
information set forth herein concerning Investor is true and correct.

         4.       Registration Rights.

                  4.1 Registration Statement. At any time during which Investor
is subject to the time, volume restrictions, or manner of sale limitations under
Rule 144 under the 1933 Act ("Rule 144"), or any successor rule or regulation,
the Company will (i) prepare and file a Registration Statement under the 1933
Act covering the Shares or will include the Shares in any other Registration
Statement it is obligated to file subsequent to the date hereof, (ii) use its
best efforts to have such Registration Statement rendered effective under the
1933 Act as soon as practicable thereafter, and (iii) take such action as may be
necessary to have such Registration Statement remain effective under the 1933
Act, free of material misstatements or omissions, for the period required to
sell such Shares in compliance therewith. The Company shall bear all fees,
disbursements and out-of-pocket expenses incurred in connection with the
preparation and filing of such Registration Statement, including any amendment
or supplement thereto necessary to cause the same to remain free of material
misstatements or omissions during the period the Registration Statement remains
effective under the 1933 Act, except as provided in Section 4.5 hereof.

                  4.2 Cooperation with Company. Investor will cooperate with the
Company in all respects in connection with this Section, including timely
supplying all information reasonably requested by the Company (which shall
include all information regarding the Investor and proposed manner of sale of
the Shares required to be disclosed in the Registration Statement) and executing
and returning all documents reasonably requested in connection with the
registration and sale of the Shares and entering into and performing its
obligations under any underwriting agreement, if the offering is an underwritten
offering, in usual and customary form, with the managing underwriter or
underwriters of such underwritten offering

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                  4.3 Termination of Registration Rights. The Company's
obligation under this Section 4 to register the Shares held by Investor shall
terminate upon the earlier of (i) the date that all of the Shares have been sold
pursuant to the Registration Statement, (ii) the date the Investor receives an
opinion of counsel to the Company, which opinion shall be reasonably acceptable
to the Investor, that the Shares may be sold under the provisions of Rule 144
without limitation as to volume, (iii) the date when all Shares have been
otherwise transferred to persons who may trade such Shares without restriction
under the 1933 Act, and the Company has delivered a new certificate or other
evidence of ownership for such securities not bearing a restrictive legend, or
(iv) the date when all Shares may be sold without any time, volume or manner
limitations pursuant to Rule 144(k) or any similar provision then in effect
under the 1933 Act in the opinion of counsel to the Company, which counsel shall
be reasonably acceptable to the Investor.

                  4.4 Indemnification. The Company agrees to indemnify and hold
harmless the Investor against any and all losses, claims, damages, liabilities
and expenses, which Investor may suffer arising out of any untrue statement of a
material fact in a Registration Statement filed in connection with the
registration rights granted by this Section 4, or arising out of any omission to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that the Company will not
be liable to the extent that such losses, claims, damages, liabilities or
expenses arise out of any untrue statement or omission which has been made
therein or omitted therefrom in reliance upon information relating to the
Investor furnished in writing to the Company by the Investor for use in
connection therewith.

                  4.5 Fees and Commissions. All underwriting and/or brokerage
discounts, fees and commissions in respect of the registration of the Shares
under this Section 4 and applicable transfer taxes payable upon sale of the
Shares, and any counsel fees or disbursements for counsel for Investor and
out-of-pocket expenses of Investor in connection with the registration of Shares
under this Section 4 shall be paid and borne by Investor.

         5.       Conditions to Obligations of the Company. The obligations of
the Company under this Agreement are subject to satisfaction of the following
conditions at or prior to the Closing, any of which may be waived by the
Company:

                  5.1 Representations and Warranties Correct. All of the
representations and warranties of Investor contained in this Agreement shall be
true and correct in all material respects as of the Closing with the same effect
as if made on the date of Closing.

                  5.2 Performance of Covenants and Agreements. All of the
covenants and agreements of Investor contained in this Agreement and required to
be performed on or before the date of Closing shall have been performed in all
material respects to the reasonable satisfaction of the Company.

                  5.3 Legal Action.

                           (a) There shall not have been instituted any material
legal proceeding seeking to prohibit the consummation of the transactions
contemplated by this Agreement.

                           (b) None of the parties hereto shall be prohibited in
any order, writ, injunction or decree of any governmental body of competent
jurisdiction from consummating the

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transactions contemplated by this Agreement, and no material action or
proceeding shall then be pending which questions the validity of this Agreement,
any of the transactions contemplated hereby or any action which has been taken
by any of the parties in connection herewith or in connection with any of the
transactions contemplated hereby.

         6.       Conditions to Obligations of Investor. The obligations of
Investor under this Agreement are subject to satisfaction of the following
conditions at or prior to the Closing, any of which may be waived by Investor.

                  6.1 Representations and Warranties Correct. All of the
representations and warranties of the Company contained in this Agreement shall
be true and correct in all material respects as of the Closing with the same
effect as if made on the date of Closing.

                  6.2 Legal Action.

                           (a) There shall not have been instituted or
threatened any legal proceedings seeking to prohibit the consummation of the
transactions contemplated by this Agreement, or to obtain damages from Investor
with respect thereto.

                           (b) None of the parties hereto shall be prohibited by
any order, writ, injunction or decree of any governmental body of competent
jurisdiction from consummating the transactions contemplated by this Agreement,
and no action or proceeding shall then be pending which questions the validity
of this Agreement, any of the transactions contemplated hereby or any action
which has been taken by any of the parties in connection herewith or in
connection with any of the transactions contemplated hereby.

         7.       Legends. The certificates evidencing any of the Shares shall
be endorsed with the legend set forth below, and Investor covenants that
Investor shall not transfer the shares represented by any such certificate
without complying with the restrictions on transfer described in the legend
endorsed on such certificate:

         THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE UNITED
         STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT
         OF 1933, AS AMENDED, (THE "1933 ACT") OR THE SECURITIES COMMISSION OF
         ANY STATE UNDER ANY STATE SECURITIES LAW. THEY WERE OFFERED PURSUANT TO
         AN EXEMPTION FROM REGISTRATION PURSUANT TO SECTION 4(2) OF THE 1933
         ACT. THE SHARES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
         UNLESS THE SHARES ARE REGISTERED UNDER THE 1933 ACT AND APPLICABLE
         STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IS OBTAINED WHICH IS
         REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH OFFERS, SALES AND
         TRANSFERS MAY BE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
         REGISTRATION REQUIREMENTS OF THOSE LAWS.

         8.       Miscellaneous.

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                   8.1 Notices. All notices or other communications given or
made hereunder shall be in writing and shall be deemed delivered personally to
the party being given notice or by facsimile, overnight courier service or by
registered or certified mail, return receipt requested, postage prepaid if to
Investor at its address set forth herein or if to the Company at 2425 East
Camelback Road, Suite 650, Phoenix, Arizona 85016 or at such other address as
may have been furnished by the Company to Investor.

                   8.2 Construction. Notwithstanding the place where this
Agreement may be executed by any of the parties hereto, the parties expressly
agree that all terms and provisions hereof shall be construed in accordance with
and governed by the laws of the State of Arizona without giving effect to
principles of conflicts of law.

                   8.3 Entire Agreement; Amendments and Waiver. This Agreement
sets forth the entire understanding of the parties with respect to the
transactions contemplated hereby, and neither party shall be bound by nor deemed
to have made any representations and/or warranties except those contained herein
or incorporated herein by reference. The provisions of this Agreement 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 Investor.

                   8.4 Successors and Assigns. Except as otherwise provided
herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective heirs, estate, successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement.

                   8.5 Headings. The terms used in this Agreement shall be
deemed to include the masculine and the feminine in the singular and the plural
as the context requires. The headings in this Agreement are for reference
purposes only and shall not be deemed to have any substantive effect.

                   8.6 Survival of Representations and Warranties. All
representations and warranties contained herein will survive the execution and
delivery of this Agreement and delivery of and payment for the Shares regardless
of any investigation made by or on behalf of the parties.

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

                   8.8 Severability. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, such provision shall be
excluded from this Agreement and the balance of the Agreement shall be
interpreted as if such provision were so excluded and shall be enforceable in
accordance with its terms.

                   IN WITNESS WHEREOF, the parties hereby have executed this
Agreement as of the date indicated above.

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TAMARACK INTERNATIONAL LIMITED

/s/ Terrence A. Jehan                                 23A Craven Terrace
----------------------------------------
By:  Terrence A. Jehan                                Lancaster Gate
Its:   Managing Director                              London, W2 3QH

BIONUTRICS, INC.

/s/ Ronald H. Lane                                    2425 East Camelback Road
----------------------------------------
By:  Ronald H. Lane                                   Suite #650
Its:  President                                       Phoenix, Arizona 85016

                                       9<PAGE>   1
                                                                   Exhibit 10.40

NEITHER THIS WARRANT, NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
HEREOF, HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAW. SUCH SECURITIES MAY
NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS (i) A REGISTRATION STATEMENT UNDER
THE SECURITIES ACT AND SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
EFFECTIVE WITH REGARD THERETO OR (ii) IN THE OPINION OF COUNSEL IN FORM AND
SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER THE
SECURITIES ACT AND SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN
CONNECTION WITH A PROPOSED SALE OR TRANSFER.

                                  COMMON STOCK
                                PURCHASE WARRANT

                          For the Purchase of Shares of

                                 Common Stock of

                                BIONUTRICS, INC.

                          (Par Value $0.001 Per Share)

              (Incorporated under the Laws of the State of Nevada)

                  VOID AFTER 5:00 P.M. PST ON October 24, 2002

                   Date of Original Issuance: October 25, 2000

         This is to certify that, for value received, TAMARACK INTERNATIONAL
LIMITED, or assigns (the "Warrantholder"), is entitled, subject to the terms and
conditions hereinafter set forth, to purchase 50,000 shares of common stock, par
value $0.001 per share (the "Common Stock"), of BIONUTRICS, INC., a Nevada
corporation (the "Company"), for the Warrant Price (as defined below), and to
receive a certificate or certificates for the shares of Common Stock so
purchased. This Warrant is being issued in connection with the terms of that
certain Stock Purchase Agreement dated October 25, 2000, by and between the
Warrantholder and the Company.

         1.       TERMS AND EXERCISE OF WARRANT.

                  (a) WARRANT SHARES. Warrant Shares (as defined below) may be
acquired in accordance with the terms of this Warrant until the Termination Date
(as defined below). The Warrantholder may exercise this Warrant with respect to
all Warrant Shares effective immediately.

                  (b) EXERCISE PERIOD. Subject to the terms of this Warrant, the
Warrantholder shall have the right, at any time during the Exercise Period (as
defined below), to exercise this Warrant for any or all Warrant Shares and to
purchase from the Company up to the number of fully paid and nonassessable
shares of Common Stock which the Warrantholder may at the time be entitled to
purchase pursuant to this Warrant. The 50,000 shares of Common Stock subject to
this Warrant and any other securities that the Company may be required by the
operation of Section 3 to issue upon the exercise hereof are referred to herein
as the "Warrant Shares." The "Exercise Period" shall mean the period commencing
on the Date of Original Issuance for such Warrant Shares and ending at 5:00
P.M.,
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Mountain Standard Time, on October 24, 2002 (the "Termination Date"), or if such
date is a day on which banking institutions are authorized by law to close, then
on the next succeeding day which shall not be such a day. If this Warrant is not
exercised on or prior to the Termination Date, this Warrant shall become void
and all rights of the Warrantholder hereunder shall cease.

                  (c) METHOD OF EXERCISE. The Warrantholder may exercise this
Warrant by surrender of this Warrant to the Company at its principal office in
Phoenix, Arizona (or at such other address as the Company may designate by
notice in writing to the Warrantholder at the address of the Warrantholder
appearing on the books of the Company or such other address as the Warrantholder
may designate in writing), together with the form of Election to Purchase
included as Exhibit A hereto, duly completed and signed, and upon payment to the
Company of the Warrant Price (as defined in Section 2) multiplied by the number
of Warrant Shares being purchased upon such exercise (the "Aggregate Warrant
Price"), together with all taxes applicable upon such exercise. Payment of the
Aggregate Warrant Price shall be made in cash or by certified check or cashier's
check, payable to the order of the Company.

                  (d) PARTIAL EXERCISE. At the election of the Warrantholder,
this Warrant shall be exercisable in whole or in part at any time, and from time
to time, during the Exercise Period.

                  (e) SHARE ISSUANCE UPON EXERCISE. Upon the exercise and
surrender of this Warrant certificate and payment of the Aggregate Warrant
Price, the Company shall issue and cause to be delivered with all reasonable
dispatch to the Warrantholder, in such name or names as the Warrantholder may
designate in writing, a certificate or certificates for the number of full
Warrant Shares so purchased upon the exercise of the Warrant, together with
cash, as provided in Section 4 hereof, with respect to any fractional Warrant
Shares otherwise issuable upon such surrender and, if applicable, the Company
shall issue and deliver a new Warrant to the Warrantholder for the number of
Warrant Shares not so exercised. Such certificate or certificates shall be
deemed to have been issued and any person so designated to be named therein
shall be deemed to have become a holder of such Warrant Shares as of the close
of business on the date of the surrender of the Warrant and payment of the
Aggregate Warrant Price, notwithstanding that the certificates representing such
Warrant Shares shall not actually have been delivered or that the stock transfer
books of the Company shall then be closed.

         2.       WARRANT PRICE. The price per share at which Warrant Shares
shall be purchasable upon the exercise of this Warrant shall be $1.00 per share,
subject to adjustment pursuant to Section 3 hereof (originally and as adjusted,
the "Warrant Price").

         3.       ADJUSTMENT OF NUMBER OF WARRANT SHARES AND WARRANT PRICE. The
Company agrees to reserve and shall keep reserved for issuance the number of
shares of Common Stock issuable upon exercise of this Warrant. The number of
Warrant Shares purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the happening of
certain events, as follows:

                  (a) In case the Company shall (1) pay a dividend or make a
distribution in shares of its Common Stock, (2) subdivide its outstanding Common
Stock into a greater number of shares, (3) combine its outstanding Common Stock
into a smaller number of shares, or (4) issue by reclassification of its Common
Stock any shares of capital stock of the Company (other than a change in par
value, or from par value to no par value, or from no par value to par value),
the number of Warrant Shares issuable upon exercise of this Warrant and the
Warrant Price in effect immediately prior thereto shall be adjusted as follows:

                           (i) The number of Warrant Shares issuable upon
exercise of this Warrant shall be adjusted by multiplying the number of Warrant
Shares issuable upon exercise of this Warrant immediately prior to such
adjustment by a fraction, the numerator of which shall be the number of shares

                                       2
<PAGE>   3
of Common Stock outstanding immediately after such adjustment, and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately prior to such adjustment; and

                           (ii) The Warrant Price shall be adjusted by
multiplying the Warrant Price in effect immediately prior to such adjustment by
a fraction, the numerator of which shall be the number of Warrant Shares
issuable upon exercise of this Warrant immediately prior to such adjustment, and
the denominator of which shall be the number of Warrant Shares as so adjusted.

         An adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date in the case of a dividend or distribution
(provided, however, that such adjustments shall be reversed if such dividends or
distributions are not actually paid) and shall become effective immediately
after the effective date in the case of a subdivision, combination, or
reclassification. If, as a result of an adjustment made pursuant to this Section
3(a), the Warrantholder shall become entitled to receive shares of two or more
classes of capital stock of the Company, the Board of Directors (whose
determination shall be conclusive and shall be evidenced by a resolution) shall
determine the allocation of the adjusted Warrant Price between or among the
shares of such classes of capital stock.

                  (b) In case of any reclassification of the outstanding Common
Stock (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision, combination or
stock dividend), or in case of any consolidation of the Company with, or merger
of the Company into, another corporation wherein the Company is not the
surviving entity, or in case of any sale of all, or substantially all, of the
property, assets, business and goodwill of the Company, the Company, or such
successor or purchasing corporation, as the case may be, shall provide, by a
written instrument delivered to the Warrantholder, that the Warrantholder shall
thereafter be entitled, upon exercise of this Warrant, to the kind and amount of
shares of stock or other equity securities, or other property or assets which
would have been receivable by such Warrantholder upon such reclassification,
consolidation, merger or sale, if this Warrant had been exercised immediately
prior thereto. Such corporation, which thereafter shall be deemed to be the
"Company" for purposes of this Warrant, shall provide in such written instrument
for adjustments to the Warrant Price which shall be as nearly equivalent as may
be practicable to the adjustments provided for in this Section 3.

                  (c) No adjustment in the number of securities purchasable
hereunder shall be required unless such adjustment would require an increase or
decrease of at least five percent (5%) in the number of securities (calculated
to the nearest full share or unit thereof) then purchasable upon the exercise of
this Warrant; provided, however, that any adjustment which by reason of this
Section 3(c) is not required to be made immediately shall be carried forward and
taken into account in any subsequent adjustment.

                  (d) For the purpose of this Section 3, the term "Common Stock"
shall mean (i) the class of stock designated as Common Stock of the Company at
October 25, 2000 or (ii) any other class of stock resulting from successive
changes or reclassifications of such Common Stock consisting solely of changes
in par value, or from par value to no par value, or from no par value to par
value. In the event that at any time, as a result of an adjustment made pursuant
to this Section 3, the Warrantholder shall become entitled to purchase any
shares of the Company's capital stock other than Common Stock, thereafter the
number of such other shares so purchasable upon the exercise of this Warrant and
the Warrant Price of such shares shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares contained in this Section 3.

                  (e) Whenever the number of shares of Common Stock and/or other
securities purchasable upon the exercise of this Warrant or the Warrant Price is
adjusted as herein provided, the Company shall cause to be promptly mailed to
the Warrantholder by first class mail, postage prepaid,

                                    3
<PAGE>   4
notice of such adjustment and a certificate of the Company's chief financial
officer setting forth the number of shares of Common Stock and/or other
securities purchasable upon the exercise of this Warrant, the Warrant Price
after such adjustment, a brief statement of the facts requiring such adjustment,
and the computation by which such adjustment was made.

                  (f) Irrespective of any adjustments in the Warrant Price or
the number or kind of securities purchasable upon the exercise of this Warrant,
the Warrant certificate or certificates theretofore or thereafter issued may
continue to express the same price or number or kind of securities stated in
this Warrant initially issuable hereunder.

         4.       REGISTRATION RIGHTS.

                  (a) At any time during which Investor is subject to the time,
volume restrictions, or manner of sale limitations under Rule 144 under the 1933
Act ("Rule 144"), or any successor rule or regulation, the Company will (i)
prepare and file a Registration Statement under the 1933 Act covering the Shares
or will include the Shares in any other Registration Statement it is obligated
to file subsequent to the date hereof, (ii) use its best efforts to have such
Registration Statement rendered effective under the 1933 Act as soon as
practicable thereafter, and (iii) take such action as may be necessary to have
such Registration Statement remain effective under the 1933 Act, free of
material misstatements or omissions, for the period required to sell such Shares
in compliance therewith. The Company shall bear all fees, disbursements and
out-of-pocket expenses incurred in connection with the preparation and filing of
such Registration Statement, including any amendment or supplement thereto
necessary to cause the same to remain free of material misstatements or
omissions during the period the Registration Statement remains effective under
the 1933 Act, except as provided in Section 4.5 hereof.

                  (b) Investor will cooperate with the Company in all respects
in connection with this Section, including timely supplying all information
reasonably requested by the Company (which shall include all information
regarding the Investor and proposed manner of sale of the Shares required to be
disclosed in the Registration Statement) and executing and returning all
documents reasonably requested in connection with the registration and sale of
the Shares and entering into and performing its obligations under any
underwriting agreement, if the offering is an underwritten offering, in usual
and customary form, with the managing underwriter or underwriters of such
underwritten offering

                  (c) The Company's obligation under this Section 4 to register
the Shares held by Investor shall terminate upon the earlier of (i) the date
that all of the Shares have been sold pursuant to the Registration Statement,
(ii) the date the Investor receives an opinion of counsel to the Company, which
opinion shall be reasonably acceptable to the Investor, that the Shares may be
sold under the provisions of Rule 144 without limitation as to volume, (iii) the
date when all Shares have been otherwise transferred to persons who may trade
such Shares without restriction under the 1933 Act, and the Company has
delivered a new certificate or other evidence of ownership for such securities
not bearing a restrictive legend, or (iv) the date when all Shares may be sold
without any time, volume or manner limitations pursuant to Rule 144(k) or any
similar provision then in effect under the 1933 Act in the opinion of counsel to
the Company, which counsel shall be reasonably acceptable to the Investor.

                  (d) The Company agrees to indemnify and hold harmless the
Investor against any and all losses, claims, damages, liabilities and expenses,
which Investor may suffer arising out of any untrue statement of a material fact
in a Registration Statement filed in connection with the registration rights
granted by this Section 4, or arising out of any omission to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; provided, however, that the Company will not be liable to the
extent that such losses, claims, damages, liabilities or expenses arise out of
any untrue statement or omission which has been made therein or omitted
therefrom in reliance upon

                                       4
<PAGE>   5
information relating to the Investor furnished in writing to the Company by the
Investor for use in connection therewith.

                  (e) All underwriting and/or brokerage discounts, fees and
commissions in respect of the registration of the Shares under this Section 4
and applicable transfer taxes payable upon sale of the Shares, and any counsel
fees or disbursements for counsel for Investor and out-of-pocket expenses of
Investor in connection with the registration of Shares under this Section 4
shall be paid and borne by Investor.

         6.       FRACTIONAL INTEREST. The Company shall not be required to
issue fractional shares upon exercise of this Warrant, but shall pay an amount
in cash equal to the closing price of the Company's Common Stock on the Nasdaq
SmallCap Market or other trading market on the day preceding the date of the
surrender of this Warrant pursuant to Section 1(c) hereof, or if there is no
public market, cash equal to the then fair market value of the shares as
reasonably determined by the Board of Directors of the Company, in its sole
discretion, multiplied by such fraction.

         7.       TRANSFER PROHIBITION. Neither this Warrant nor any rights
hereunder may be sold, exchanged, conveyed, assigned, given, or otherwise
transferred by the Warrantholder without prior notification of Bionutrics.

         8.       NO RIGHTS AS SHAREHOLDER; NOTICES TO WARRANTHOLDER. Prior to
the exercise of this Warrant pursuant to the terms hereof, nothing contained in
this Warrant shall be construed as conferring upon the Warrantholder any rights
as a shareholder of the Company, either at law or in equity, including the right
to vote, receive dividends, consent, or receive notices as a shareholder with
respect to any meeting of shareholders for the election of directors of the
Company or for any other matter.

         9.       NOTICES. Any notice given pursuant to this Warrant by the
Company or by the Warrantholder shall be in writing and shall be deemed to have
been duly given upon (a) personal delivery, (b) transmitter's confirmation of
the receipt of a facsimile transmission, (c) confirmed delivery by a standard
overnight carrier, or (d) the expiration of three business days after the day
when mailed by United States Postal Service by certified or registered mail,
return receipt requested, postage prepaid at the following addresses:

         If to the Company:

                  Bionutrics, Inc.
                  2425 E. Camelback Road, Suite 650
                  Phoenix, Arizona  85016
                  Attention:  George E. Duck, Jr.

         with a copy to:

                  Greenberg Traurig, LLP
                  One E. Camelback Road, Suite 1100
                  Phoenix, Arizona 85012
                  Attention: Jean E. Harris, Esq.

         If to the Warrantholder:

                  Tamarack International Limited
                  23A Craven Terrace
                  Lancaster Gate

                                       5
<PAGE>   6
                  London, W2 3QH
                  Attention: Terrence A Jehan

         Each party hereto may, from time to time, change the address to which
notices to it are to be transmitted, delivered or mailed hereunder by notice in
accordance herewith to the other party.

         10.      INVESTMENT REPRESENTATION. The Warrantholder hereby represents
to the Company that it is acquiring this Warrant for its own account, as
principal, for investment and not with a view to or the intent to participate
in, directly or indirectly, the resale, assignment, distribution, or
fractionalization of all or any part hereof. Further, the Warrantholder shall
furnish the Company an investment letter, in form and substance satisfactory to
the Company, prior to the issuance of any Warrant Shares or other securities
issuable upon the exercise hereof, to the effect that such securities, and any
additional securities of the Company for which such securities may be exercised
or exchanged or into which they may ultimately be converted, if not registered
pursuant to applicable state and federal securities laws, will be acquired for
investment and not with a view to the sale or distribution thereof. The
Warrantholder hereby further represents that it has been provided with, or given
reasonable access to, full and fair disclosure of all material information
regarding the Company, this Warrant, and the Common Stock.

         11.      GENERAL PROVISIONS.

                  (a) SUCCESSORS. All covenants and provisions of this Warrant
shall bind and inure to the benefit of the respective successors and assigns of
the parties hereto.

                  (b) CHOICE OF LAW. This Warrant and the rights of the parties
hereunder shall be governed by and construed in accordance with the laws of the
State of Arizona, including all matters of construction, validity, performance,
and enforcement, and without giving effect to the principles of any Arizona or
other conflict-of-law provisions to the contrary.

                  (c) ENTIRE AGREEMENT. Except as provided herein, this Warrant,
including exhibits, contains the entire agreement of the parties, and supersedes
all existing negotiations, representations, or agreements and all other oral,
written, or other communications between them concerning the subject matter of
this Warrant.

                  (d) SEVERABILITY. If any provision of this Warrant is
unenforceable, invalid, or violates applicable law, such provision shall be
deemed stricken and shall not affect the enforceability of any other provisions
of this Warrant.

                  (e) CAPTIONS. The captions in this Warrant are inserted only
as a matter of convenience and for reference and shall not be deemed to define,
limit, enlarge, or describe the scope of this Warrant or the relationship of the
parties, and shall not affect this Warrant or the construction of any provisions
herein.

                                       6
<PAGE>   7
         IN WITNESS WHEREOF, the Company caused this Warrant to be duly executed
as of the date first above written.

                                             BIONUTRICS, INC.

                                             /s/ Ronald H. Lane
                                             ------------------
                                             By:  Ronald H. Lane
                                             Its:  President

         The Warrantholder hereby agrees to and accepts the terms and conditions
of this Warrant this 25th day of October, 2000.

                                              TAMARACK INTERNATIONAL LIMITED

                                              /s/ Terrence A. Jehan
                                              ---------------------
                                              By: Terrence A. Jehan
                                              Its:  Managing Director

                                       7
<PAGE>   8
                                    EXHIBIT A

                              ELECTION TO PURCHASE

Bionutrics, Inc.
2425 E. Camelback Road, Suite 650
Phoenix, Arizona 85016

                  The undersigned hereby irrevocably elects to exercise the
right of purchase set forth in the attached Warrant to purchase thereunder
____________________ shares of the Common Stock (the "Warrant Shares") provided
for therein and requests that the Warrant Shares be issued in the name of

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
(Please Print Name, Address and SSN or EIN of Shareholder above)

Dated:______________

Name of Warrantholder or Assignee:______________________________________________
                                                  (Please Print)

Signature:______________________________________________________________________
                  (Signature must conform in all respects to name of
                  holder as specified on the face of the Warrant.)

Address:  ______________________________________________________________________

Aggregate Warrant Price Paid: $__________________

Method of payment:______________________________________________________________
                                         (Please Print)

____________________________________________________________
Medallion Signature Guarantee (required if an assignment of
Warrant Shares acquired on exercise is made upon exercise.)

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