Document:

Exhibit 10.3

NEITHER THIS WARRANT NOR ISSUANCE OF THE  SECURITIES  ISSUABLE UPON THE EXERCISE
HEREOF TO THE HOLDER HAVE BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF 1933 OR
QUALIFIED OR REGISTERED  UNDER STATE  SECURITIES OR BLUE SKY LAWS.  NEITHER THIS
WARRANT  NOR SUCH  SECURITIES  MAY BE SOLD OR  OTHERWISE  TRANSFERRED  EXCEPT IN
COMPLIANCE WITH THE SECURITIES ACT OF 1933,  APPLICABLE STATE SECURITIES OR BLUE
SKY LAWS AND THE APPLICABLE RULES AND REGULATIONS THEREUNDER.

THIS WARRANT MAY NOT BE TRANSFERRED EXCEPT AS PROVIDED IN SECTION 23.

No. W-2                                    Right to Purchase 1,111,111 Shares of
                                           Common Stock of Knightsbridge Fine
                                           Wines, Inc.

                         KNIGHTSBRIDGE FINE WINES, INC.

                          COMMON STOCK PURCHASE WARRANT

                           KNIGHTSBRIDGE FINE WINES, INC., a Nevada corporation,
hereby  certifies  that,  for value  received,  GRYPHON  MASTER  FUND,  L.P.  or
registered assigns (the "Holder"),  is entitled,  subject to the terms set forth
below, to purchase from the Company at any time or from time to time before 5:00
p.m., Dallas,  Texas time, on the Expiration Date (such capitalized term and all
other  capitalized  terms used herein having the  respective  meanings  provided
herein),  1,111,111  fully paid and  nonassessable  shares of Common  Stock at a
purchase price per share equal to the Purchase Price.  The number of such shares
of Common Stock and the Purchase  Price are subject to adjustment as provided in
this Warrant.

                           1.    DEFINITIONS.

                           (a)  As used in this Warrant, the term "Holder" shall
have the meaning assigned to such term in the first paragraph of this Warrant.

                           (b) All the agreements or instruments herein  defined
shall mean such  agreements or  instruments as the same may from time to time be
supplemented  or amended or the terms  thereof  waived or modified to the extent
permitted by, and in accordance with, the terms thereof and of this Warrant.

                           (c)  The  following  terms  shall have  the following

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meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

                           "Affiliate"  means,  with respect to any Person,  any
         other  Person  that  directly,   or  indirectly  through  one  or  more
         intermediaries,  controls,  is controlled by or is under common control
         with the subject  Person.  For purposes of this  definition,  "control"
         (including,  with correlative  meaning,  the terms  "controlled by" and
         "under common control with"), as used with respect to any Person, shall
         mean the possession,  directly or indirectly, of the power to direct or
         cause the  direction  of the  management  and  policies of such Person,
         whether  through the  ownership of voting  securities or by contract or
         otherwise.

                           "Aggregate  Purchase  Price"  means  at any  time  an
         amount equal to the product  obtained by  multiplying  (x) the Purchase
         Price  times (y) the  number of shares of Common  Stock for which  this
         Warrant may be exercised at such time.

                  "Aggregation  Parties"  shall  have the  meaning  provided  in
Section 2(c).

                           "Board of Directors"  means the Board of Directors of
the Company.

                           "Business  Day" means any day other than a  Saturday,
         Sunday or other day on which commercial banks in the City of Dallas are
         authorized or required by law or executive order to remain closed.

                           "Common Stock"  includes the Company's  Common Stock,
         par value $.001 per share, (and any purchase rights issued with respect
         to the Common  Stock in the future) as  authorized  on the date hereof,
         and any other  securities into which or for which the Common Stock (and
         any such  rights  issued  with  respect  to the  Common  Stock)  may be
         converted  or  exchanged  pursuant  to  a  plan  of   recapitalization,
         reorganization,  merger,  sale of  assets  or  otherwise  and any stock
         (other than Common  Stock) and other  securities  of the Company or any
         other Person which the Holder at any time shall be entitled to receive,
         or shall have received,  on the exercise of this Warrant, in lieu of or
         in addition to Common Stock.

                           "Common Stock Equivalents" means any warrant, option,
         subscription  or purchase right with respect to shares of Common Stock,
         any security convertible into, exchangeable for, or otherwise entitling
         the holder  thereof to acquire,  shares of Common Stock or any warrant,
         option,  subscription  or  purchase  right  with  respect  to any  such
         convertible, exchangeable or other security.

                           "Company"  shall  include  Knightsbridge  Fine Wines,
         Inc., a Nevada  corporation,  and any corporation that shall succeed to

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         or assume the obligations of Knightsbridge  Fine Wines, Inc.  hereunder
         in accordance with the terms hereof.

                           "Current  Fair  Market  Value"  means  when used with
         respect to the Common Stock as of a specified date with respect to each
         share of Common Stock,  the average of the closing prices of the Common
         Stock sold on all  securities  exchanges  (including the Nasdaq and the
         Nasdaq  SmallCap)  on which the Common Stock may at the time be listed,
         or, if there have been no sales on any such  exchange on such day,  the
         average  of the  highest  bid  and  lowest  asked  prices  on all  such
         exchanges  at the end of such day,  or, if on such day the Common Stock
         is not so  listed,  the  average  of the  representative  bid and asked
         prices quoted in the Nasdaq System as of 4:00 p.m., New York City time,
         or, if on such day the Common Stock is not quoted in the Nasdaq System,
         the average of the  highest  bid and lowest  asked price on such day in
         the  domestic  over-the-counter  market  as  reported  by the  National
         Quotation Bureau, Incorporated,  or any similar successor organization,
         in each such case averaged over a period of ten Trading Days consisting
         of the day as of which the Current Fair Market Value of Common Stock is
         being  determined (or if such day is not a Trading Day, the Trading Day
         next preceding such day) and the nine consecutive Trading Days prior to
         such day. If on the date for which  Current  Fair Market Value is to be
         determined the Common Stock is not listed on any securities exchange or
         quoted in the Nasdaq System or the over-the-counter market, the Current
         Fair Market Value of Common Stock shall be the highest  price per share
         which the  Company  could  then  obtain  from a willing  buyer  (not an
         employee or director of the Company at the time of determination) in an
         arms'-length  transaction  for  shares  of  Common  Stock  sold  by the
         Company,  from  authorized but unissued  shares,  as determined in good
         faith by the Board of Directors.

                           "Expiration Date" means December 22, 2008.

                           "Gryphon" means Gryphon Master Fund, L.P., a  Bermuda
limited partnership.

                           "Holder Share Notice" shall have the meaning provided
in Section 3(a).

                           "Issuance  Date" means the date of original  issuance
of this Warrant or its predecessor instrument.

                           "Nasdaq" means the Nasdaq National Market.

                           "Nasdaq SmallCap" means the Nasdaq SmallCap Market.

                           "1934 Act" means the Securities Exchange Act of 1934,
as amended.

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                           "1933  Act"  means  the  Securities  Act of 1933,  as
amended.

                           "Note" means  the 7.5% Secured Convertible  Note  due
2006 issued by the Company pursuant to the Purchase Agreement.

                           "Other Securities" means any stock (other than Common
         Stock) and other  securities  of the Company or any other  Person which
         the  Holder at any time shall be  entitled  to  receive,  or shall have
         received, on the exercise of this Warrant, in lieu of or in addition to
         Common Stock, or which at any time shall be issuable or shall have been
         issued in  exchange  for or in  replacement  of  Common  Stock or Other
         Securities pursuant to Section 5.

                           "Person"    means   an    individual,    corporation,
         partnership,   limited  liability  company,   trust,   business  trust,
         association,  joint stock company, joint venture, pool, syndicate, sole
         proprietorship,  unincorporated organization, governmental authority or
         any other form of entity not specifically listed herein.

                           "Purchase  Agreement"  means the Purchase  Agreement,
         dated as of December 22, 2003, by and between the Company and Gryphon.

                           "Purchase  Price" means $0.70,  subject to adjustment
as provided in this Warrant.

                           "QIB"  means a  "qualified  institutional  buyer"  as
defined in Rule 144A.

                           "Registration    Rights    Agreement"    means    the
         Registration  Rights  Agreement,  dated as of December 22, 2003, by and
         between the Company and Gryphon.

                           "Registration   Statement"  shall  have  the  meaning
provided in the Registration Rights Agreement.

                           "Restricted  Ownership  Percentage"  shall  have  the
meaning provided in Section 2(c).

                           "Restricted Securities" means securities that are not
         eligible for resale  pursuant to Rule 144(k) under the 1933 Act (or any
         successor provision).

                           "Reorganization  Event" means the  occurrence  of any
one or more of the following events:

                           (i) any consolidation,  merger or similar transaction
                  of the Company or any  Subsidiary  with or into another entity
                  (other than a merger or consolidation  or similar  transaction
                  of  a   Subsidiary   into  the   Company  or  a   wholly-owned
                  Subsidiary);  or the sale or transfer of all or  substantially

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                  all of the assets of the  Company  and the  Subsidiaries  in a
                  single transaction or a series of related transactions; or

                           (ii) the  occurrence of any  transaction  or event in
                  connection  with  which all or  substantially  all the  Common
                  Stock shall be exchanged for, converted into,  acquired for or
                  constitute the right to receive securities of any other Person
                  (whether   by   means   of  a   Tender   Offer,   liquidation,
                  consolidation,    merger,    share   exchange,    combination,
                  reclassification, recapitalization, or otherwise); or

                           (iii) the acquisition by a Person or group of Persons
                  acting  in  concert  as a  partnership,  limited  partnership,
                  syndicate or group, as a result of a tender or exchange offer,
                  open  market  purchases,  privately  negotiated  purchases  or
                  otherwise,  of  beneficial  ownership  of  securities  of  the
                  Company  representing 50% or more of the combined voting power
                  of the outstanding voting securities of the Company ordinarily
                  (and  apart from  rights  accruing  in special  circumstances)
                  having the right to vote in the election of directors.

                           "Rule 144A" means Rule 144A as promulgated  under the
1933 Act.

                           "SEC" means the Securities and Exchange Commission.

                           "Subsidiary" means any corporation or other entity of
         which a majority  of the  capital  stock or other  ownership  interests
         having  ordinary  voting  power to  elect a  majority  of the  board of
         directors or other Persons performing similar functions are at the time
         directly or indirectly owned by the Company.

                           "Tender  Offer" means a tender offer,  exchange offer
         or other offer by the Company to repurchase  outstanding  shares of its
         capital stock.

                           "Trading  Day"  means a day on  whichever  of the OTC
         Bulletin Board,  any national  securities  exchange,  the Nasdaq or the
         Nasdaq SmallCap, which then constitutes the principal securities market
         for the Common Stock, is open for general trading.

                           2.    EXERCISE OF WARRANT.

                           (A) EXERCISE.  This Warrant may  be exercised  by the
Holder  in whole  at any  time or in part  from  time to time on or  before  the
Expiration Date by (x)  surrendering  this Warrant to the Company,  (y) giving a
subscription form in the form of EXHIBIT 1 to this Warrant (duly executed by the
Holder) to the  Company,  and (z) making  payment,  in cash or by  certified  or
official bank check payable to the order of the Company,  or by wire transfer of
funds to the account of the Company, in any such case, in the amount obtained by
multiplying (a) the number of shares of Common Stock designated by the Holder in

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the subscription  form by (b) the Purchase Price then in effect.  On any partial
exercise  the Company will  forthwith  issue and deliver to or upon the order of
the Holder a new Warrant or Warrants of like tenor, in the name of the Holder or
as the Holder (upon payment by the Holder of any applicable  transfer taxes) may
request,  providing  in the  aggregate  on the  face or  faces  thereof  for the
purchase  of the  number of shares of Common  Stock for which  such  Warrant  or
Warrants may still be exercised.  The  subscription  form may be  surrendered by
telephone line facsimile  transmission to such telephone  number for the Company
as shall have been specified in writing to the Holder by the Company;  provided,
however, that if the subscription form is given to the Company by telephone line
facsimile  transmission  the Holder shall send an original of such  subscription
form to the Company within ten Business Days after such  subscription form is so
given to the Company;  provided further,  however,  that any failure or delay on
the part of the Holder in giving such  original of any  subscription  form shall
not affect the validity or the date on which such  subscription form is so given
by telephone line facsimile transmission.

                           (B) NET EXERCISE.  The Holder  may elect  to exercise
this  Warrant,  in whole at any time or in part from time to time,  by receiving
shares of Common Stock equal to the net issuance value (as determined  below) of
this  Warrant,  or any part  hereof,  upon  surrender of the  subscription  form
annexed  hereto  (duly  executed  by the  Holder) to the  Company  (followed  by
surrender  of this  Warrant  to the  Company  within  three  Trading  Days after
surrender of such subscription  form), in which event the Company shall issue to
the  Holder a number  of shares of Common  Stock  computed  using the  following
formula:

                                    X = Y x (A - B)
                                        -----------
                                             A

where,

                           X =   the number of shares of Common Stock to be
                                 issued to the Holder

                           Y =   the number of shares of Common Stock as to
                                 which this Warrant is to be exercised

                           A =   the Current Fair  Market  Value of one share of
                                 Common Stock calculated as of the  last Trading
                                 Day immediately preceding the exercise of  this
                                 Warrant

                           B =   the Purchase Price

Notwithstanding the foregoing,  the Holder may conduct a "net" exercise pursuant
to this Section 2(b) only after the first  anniversary of the Issuance Date, and
then only in the event that the Registration  Statement is not then effective at
the time that the Holder wishes to conduct such "net" exercise.

<PAGE>

                           (C)     9.99% LIMITATION.

                            (1)  Notwithstanding   anything  to   the   contrary
contained  herein,  the number of shares of Common Stock that may be acquired by
the Holder upon exercise  pursuant to the terms hereof shall not exceed a number
that,  when  added  to the  total  number  of  shares  of  Common  Stock  deemed
beneficially  owned by the  Holder  (other  than by virtue of the  ownership  of
securities or rights to acquire securities (including the Note and this Warrant)
that have  limitations  on the Holder's  right to convert,  exercise or purchase
similar to the limitation set forth herein),  together with all shares of Common
Stock  deemed  beneficially  owned at such  time  (other  than by  virtue of the
ownership of securities or rights to acquire securities that have limitations on
the right to convert,  exercise or purchase  similar to the limitation set forth
herein) by the Holder's  Affiliates  (the  "Aggregation  Parties") that would be
aggregated for purposes of determining whether a group exists or for purposes of
determining the Holder's beneficial ownership,  in either such case for purposes
of Section 13(d) of the 1934 Act and Regulation 13D-G  thereunder,  would result
in  beneficial  ownership  by the Holder or such group of more than 9.99% of the
outstanding shares of the Common Stock (the "Restricted Ownership  Percentage").
The Holder  shall have the right (x) at any time and from time to time to reduce
its Restricted  Ownership  Percentage  immediately upon notice to the Company in
the event and only to the  extent  that  Section 16 of the 1934 Act or the rules
promulgated  thereunder (or any successor statute or rules) is changed to reduce
the beneficial  ownership  percentage  threshold thereunder from 10%, (y) at any
time and from time to time,  to increase  its  Restricted  Ownership  Percentage
immediately  in the event of the happening of any Change in Control  Transaction
(as defined in the Note), and (z) by written instrument delivered to the Company
to irrevocably  waive its rights under the immediately  preceding clause (y). If
at any time the limits in this Section 2(c) make this Warrant  unexercisable  in
whole or in part,  the  Company  shall not by reason  thereof be relieved of its
obligation  to issue  shares  of  Common  Stock at any time or from time to time
thereafter  as  shares of Common  Stock  may be issued in  compliance  with such
restrictions.

                           (2) For purposes of this Section 2(c), in determining
the number of outstanding shares of Common Stock at any time the Holder may rely
on the number of  outstanding  shares of Common  Stock as  reflected  in (A) the
Company's then most recent Form 10-Q,  Form 10-K or other public filing with the
SEC, as the case may be, (B) a public  announcement by the Company that is later
than any such filing  referred to in the preceding  clause (A), or (C) any other
notice by the Company or its transfer  agent  setting forth the number shares of
Common Stock  outstanding.  Upon the written or oral request of the Holder,  the
Company  shall  within one  Business  Day  confirm  orally and in writing to the
Holder the number of shares of Common Stock then  outstanding.  In any case, the
number of  outstanding  shares of Common Stock shall be determined  after giving
effect to the  conversion  or exercise of Common Stock  Equivalents,  including,
without  limitation,  the Note and the Warrant, by the Holder or its Aggregation
Parties,  in each such case  subsequent  to the date as of which such  number of
outstanding shares of Common Stock was reported.

<PAGE>

                           3. DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE.
(a) As soon as  practicable  after the exercise of this Warrant and in any event
within  five  Trading  Days  thereafter,  upon  the  terms  and  subject  to the
conditions of this Warrant, the Company at its expense (including the payment by
it of any  applicable  issue or stamp taxes) will cause to be issued in the name
of and delivered to the Holder,  or as the Holder (upon payment by the Holder of
any applicable transfer taxes) may direct, a certificate or certificates for the
number  of fully  paid and  nonassessable  shares  of  Common  Stock  (or  Other
Securities)  to which the Holder  shall be  entitled on such  exercise,  in such
denominations  as  may  be  requested  by  the  Holder,   which  certificate  or
certificates  shall be free of restrictive  and trading  legends  (except to the
extent permitted under Section 6.12 of the Purchase Agreement), plus, in lieu of
any fractional share to which the Holder would otherwise be entitled, cash equal
to such  fraction  multiplied  by the then Current Fair Market Value of one full
share of Common Stock,  together with any other stock or Other Securities or any
property (including cash, where applicable) to which the Holder is entitled upon
such exercise pursuant to Section 2 or otherwise. In lieu of delivering physical
certificates for the shares of Common Stock or (Other Securities)  issuable upon
any  exercise  of  this  Warrant,  provided  the  Company's  transfer  agent  is
participating in the Depository Trust Company ("DTC") Fast Automated  Securities
Transfer  ("FAST")  program,  upon request of the Holder,  the Company shall use
commercially  reasonable  efforts to cause its transfer agent  electronically to
transmit  such  shares of  Common  Stock (or  Other  Securities)  issuable  upon
conversion  to the Holder (or its  designee),  by  crediting  the account of the
Holder's  (or such  designee's)  broker with DTC through its Deposit  Withdrawal
Agent Commission system (provided that the same time periods herein as for stock
certificates   shall  apply).   The  Company  shall  pay  any  taxes  and  other
governmental  charges that may be imposed under the laws of the United States of
America or any political  subdivision or taxing authority  thereof or therein in
respect of the issue or delivery of shares of Common Stock (or Other Securities)
or payment of cash upon  exercise  of this  Warrant  (other  than  income  taxes
imposed on the Holder).  The Company shall not be required,  however, to pay any
tax or other charge  imposed in  connection  with any  transfer  involved in the
issue of any  certificate  for  shares  of Common  Stock  (or Other  Securities)
issuable  upon  exercise of this  Warrant or payment of cash to any Person other
than the Holder,  and in case of such  transfer or payment the Company shall not
be  required  to deliver any  certificate  for shares of Common  Stock (or Other
Securities) upon such exercise or pay any cash until such tax or charge has been
paid or it has been established to the Company's reasonable satisfaction that no
such tax or charge is due. If the Holder  notifies  the Company  that the Holder
has not received  such shares of Common Stock (or Other  Securities)  (a "Holder
Share  Notice") and the Company fails to deliver or cause to be delivered to the
Holder  such  shares of Common  Stock (or  Other  Securities)  pursuant  to this
Section  3(a) (free of any  restrictions  on transfer  or legends  except to the
extent  permitted  under  Section 6.12 of the Purchase  Agreement) in accordance
herewith,  within one  Trading  Day after the date the Holder  gives such Holder
Share Notice, then, in addition to any other liability the Company may have, the
Company shall pay to the Holder, in cash, an amount,  computed at the rate of 2%

<PAGE>

per month of the  Current  Fair Market  Value of the shares of Common  Stock (or
Other  Securities)  not timely  delivered  by the  Company,  for the period such
failure  continues (the "Exercise Delay Payments"),  without  duplication of any
amount  payable to the Holder  pursuant to clause (F) of Section  2(c)(i) of the
Registration Rights Agreement, with each change in the Current Fair Market Value
during such period  being given  effect.  A Holder  Share Notice may be given by
telephone or e-mail to the Company's Chief Financial Officer or General Counsel.
Upon exercise of this Warrant as provided  herein,  the Company's  obligation to
issue and  deliver the  certificates  for Common  Stock  shall be  absolute  and
unconditional,  irrespective  of the  absence  of any  action  by the  Holder to
enforce the same,  any waiver or consent with respect to any  provision  hereof,
the  recovery  of any  judgment  against any Person or any action to enforce the
same,  any failure or delay in the  enforcement  of any other  obligation of the
Company to the Holder, or any setoff,  counterclaim,  recoupment,  limitation or
termination,  or any breach or alleged  breach by the Holder or any other Person
of any obligation to the Company or any violation or alleged violation of law by
the Holder or any other Person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Holder in connection
with such exercise.

                  (b) If in any case the Company shall fail to issue and deliver
or cause to be delivered  the shares of Common Stock to the Holder in connection
with a  particular  exercise  of this  Warrant  within one Trading Day after the
Holder  gives a Holder  Share  Notice to the  Company,  in addition to any other
liabilities  the Company may have  hereunder and under  applicable  law, (A) the
Company  shall pay or  reimburse  the  Holder on  demand  for all  out-of-pocket
expenses,  including, without limitation,  reasonable fees and expenses of legal
counsel,  incurred by the Holder as a result of such failure; (B) if as a result
of such failure the Holder shall suffer any direct damages or  liabilities  from
such failure  (including,  without  limitation,  margin interest and the cost of
purchasing  securities  to cover a sale  (whether by the Holder or the  Holder's
securities  broker)  or  borrowing  of shares of Common  Stock by the Holder for
purposes of settling  any trade  involving a sale of shares of Common Stock made
by the Holder during the period beginning on the Issuance Date and ending on the
date the Company delivers or causes to be delivered to the Holder such shares of
Common  Stock),  then,  in addition to any amounts  payable  pursuant to Section
3(a),  the  Company  shall upon demand of the Holder pay to the Holder an amount
equal to the actual, direct,  demonstrable out-of-pocket damages and liabilities
suffered  by the  Holder by reason  thereof  which the Holder  documents  to the
reasonable satisfaction of the Company, and (C) the Holder may by written notice
(which  may be  given by mail,  courier,  personal  service  or  telephone  line
facsimile transmission) or oral notice (promptly confirmed in writing), given at
any time prior to delivery to the Holder of the shares of Common Stock  issuable
in connection  with such exercise of the Holder's  right,  rescind such exercise
and the  subscription  form  relating  thereto,  in which case the Holder  shall
thereafter be entitled to exercise that portion of this Warrant as to which such
exercise is so rescinded  and to exercise  its other  rights and  remedies  with
respect to such  failure  by the  Company.  Notwithstanding  the  foregoing  the
Company  shall not be  liable  to the  Holder  under  clauses  (A) or (B) of the
immediately  preceding  sentence  to the  extent the  failure of the  Company to
deliver or to cause to be  delivered  such shares of Common  Stock  results from
fire, flood, storm, earthquake, shipwreck, strike, war, acts of terrorism, crash
involving  facilities  of a common  carrier,  acts of God, or any similar  event
outside  the  control of the  Company  (it being  understood  that the action or
failure  to act of the  Company's  Transfer  Agent  shall not be deemed an event
outside  the control of the Company  except to the extent  resulting  from fire,

<PAGE>

flood,  storm,  earthquake,  shipwreck,  strike,  war, acts of terrorism,  crash
involving  facilities  of a common  carrier,  acts of God, or any similar  event
outside the control of such Transfer  Agent or the  bankruptcy,  liquidation  or
reorganization of such Transfer Agent under any bankruptcy,  insolvency or other
similar  law).  The Holder  shall notify the Company in writing (or by telephone
conversation,  confirmed in writing) as promptly as  practicable  following  the
third Trading Day after the Holder  exercises this Warrant if the Holder becomes
aware that such  shares of Common  Stock so issuable  have not been  received as
provided  herein,  but any failure so to give such  notice  shall not affect the
Holder's rights under this Warrant or otherwise.

                           4.  ADJUSTMENT FOR DIVIDENDS IN OTHER STOCK,PROPERTY,
ETC.;  RECLASSIFICATION,  ETC.  In case at any  time or from  time to time on or
after the Issuance Date, all holders of Common Stock (or Other Securities) shall
have received,  or (on or after the record date fixed for the  determination  of
stockholders eligible to receive) shall have become entitled to receive, without
payment therefor,

                           (a) other or additional  stock,  rights,  warrants or
         other securities or property (other than cash) by way of dividend, or

                           (b) any cash (excluding cash dividends payable solely
         out of earnings or earned surplus of the Company), or

                           (c) other or additional  stock,  rights,  warrants or
         other  securities  or  property  (including  cash) by way of  spin-off,
         split-up, reclassification,  recapitalization, combination of shares or
         similar corporate rearrangement,

other than (i) additional shares of Common Stock (or Other Securities) issued as
a stock  dividend  or in a  stock-split  (adjustments  in  respect  of which are
provided for in Section 6) and (ii) rights or warrants to  subscribe  for Common
Stock at less than the Current  Fair  Market  Value  (adjustments  in respect of
which are provided in Section 7), then and in each such case the Holder,  on the
exercise  hereof as  provided  in Section 2, shall be  entitled  to receive  the
amount of stock,  rights,  warrants and Other Securities and property (including
cash in the cases  referred to in  subdivisions  (b) and (c) of this  Section 4)
which the Holder would hold on the date of such  exercise if on the date of such
action  specified in the  preceding  clauses (a) through (c) (or the record date
therefor)  the  Holder  had been the holder of record of the number of shares of
Common Stock called for on the face of this Warrant and had  thereafter,  during
the period from the date  thereof to and  including  the date of such  exercise,
retained such shares and all such other or additional  stock,  rights,  warrants
and Other  Securities  and property  (including  cash in the case referred to in
subdivisions  (b)  and  (c) of this  Section  4)  receivable  by the  Holder  as
aforesaid during such period, giving effect to all adjustments called for during
such period by Section 5.

<PAGE>

                           5.  EXERCISE UPON A REORGANIZATION EVENT.  In case of
any  Reorganization  Event the Company  shall,  as a condition  precedent to the
consummation   of  the   transactions   constituting,   or  announced  as,  such
Reorganization  Event, cause effective  provisions to be made so that the Holder
shall have the right  thereafter,  by  exercising  this  Warrant (in lieu of the
shares  of  Common  Stock  of the  Company  and  Other  Securities  or  property
purchasable  and  receivable  upon  exercise  of the rights  represented  hereby
immediately prior to such Reorganization  Event) to purchase the kind and amount
of shares of stock and Other Securities and property (including cash) receivable
upon such  Reorganization  Event by a holder  of the  number of shares of Common
Stock that might have been received  upon  exercise of this Warrant  immediately
prior to such Reorganization  Event. Any such provision shall include provisions
for  adjustments  in respect of such  shares of stock and Other  Securities  and
property  that  shall  be as  nearly  equivalent  as may be  practicable  to the
adjustments provided for in this Warrant. The provisions of this Section 5 shall
apply to successive Reorganization Events.

                           6.  ADJUSTMENT FOR CERTAIN EXTRAORDINARY  EVENTS.  If
on or after the Issuance Date the Company shall (i) issue  additional  shares of
the Common  Stock as a dividend  or other  distribution  on  outstanding  Common
Stock,  (ii) subdivide or reclassify its outstanding  shares of Common Stock, or
(iii) combine its  outstanding  shares of Common Stock into a smaller  number of
shares of Common  Stock,  then,  in each such event,  the Purchase  Price shall,
simultaneously  with the happening of such event, be adjusted by multiplying the
Purchase  Price in effect  immediately  prior to such event by a  fraction,  the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately prior to such event and the denominator of which shall be the number
of shares of Common  Stock  outstanding  immediately  after such event,  and the
product so obtained shall  thereafter be the Purchase Price then in effect.  The
Purchase Price, as so adjusted,  shall be readjusted in the same manner upon the
happening of any successive  event or events described herein in this Section 6.
The Holder shall thereafter, on the exercise hereof as provided in Section 2, be
entitled  to  receive  that  number  of shares of  Common  Stock  determined  by
multiplying the number of shares of Common Stock which would be issuable on such
exercise immediately prior to such issuance,  subdivision or combination, as the
case may be, by a fraction of which (i) the  numerator is the Purchase  Price in
effect  immediately  prior to such  issuance,  and (ii) the  denominator  is the
Purchase Price in effect on the date of such exercise.

                           7.   ISSUANCE  OF  RIGHTS  OR  WARRANTS  TO  COMMON
STOCKHOLDERS  AT LESS THAN CURRENT FAIR MARKET VALUE. If the Company shall on or
after  the  Issuance  Date  issue  rights  or  warrants  to all  holders  of its
outstanding  shares of Common Stock  entitling them to subscribe for or purchase
shares of Common  Stock at a price per share less than the  Current  Fair Market
Value on the record date fixed for the determination of stockholders entitled to
receive such rights or warrants, then

                  (a) the  Purchase  Price  shall be  adjusted  so that the same
         shall equal the price  determined by multiplying  the Purchase Price in
         effect at the  opening of business on the day after such record date by

<PAGE>

         a  fraction  of which the  numerator  shall be the  number of shares of
         Common Stock  outstanding  at the close of business on such record date
         plus the number of shares  which the  aggregate  offering  price of the
         total number of shares so offered  would  purchase at such Current Fair
         Market  Value,  and the  denominator  shall be the  number of shares of
         Common Stock  outstanding  on the close of business on such record date
         plus the total number of  additional  shares of Common Stock so offered
         for subscription or purchase; and

                  (b) the number of shares of Common  Stock which the Holder may
         thereafter  purchase  upon  exercise of this  Warrant at the opening of
         business  on the day after such  record  date shall be  increased  to a
         number  equal to the quotient  obtained by dividing  (x) the  Aggregate
         Purchase Price in effect  immediately  prior to such  adjustment in the
         Purchase  Price  pursuant  to clause  (a) of this  Section 7 by (y) the
         Purchase  Price in effect  immediately  after  such  adjustment  in the
         Purchase Price pursuant to clause (a) of this Section 7.

Such adjustment shall become effective immediately after the opening of business
on the day following  the record date fixed for  determination  of  stockholders
entitled to receive such rights or warrants. To the extent that shares of Common
Stock are not delivered pursuant to such rights or warrants, upon the expiration
or  termination  of such  rights  or  warrants,  the  Purchase  Price  shall  be
readjusted  to the  Purchase  Price  which  would  then  be in  effect  had  the
adjustments  made upon the issuance of such rights or warrants  been made on the
basis of  delivery  of only the  number  of  shares  of  Common  Stock  actually
delivered  and the number of shares of Common  Stock for which this  Warrant may
thereafter be exercised shall be readjusted (subject to proportionate adjustment
for any intervening exercises of this Warrant) to the number which would then be
in effect had the adjustments  made upon the issuance of such rights or warrants
been made on the basis of delivery of only the number of shares of Common  Stock
actually delivered. In the event that such rights or warrants are not so issued,
the Purchase  Price shall again be adjusted to be the Purchase Price which would
then be in  effect if such  record  date had not been  fixed  and the  number of
shares of Common Stock for which this Warrant may thereafter be exercised  shall
again be  adjusted  (subject to  proportionate  adjustment  for any  intervening
exercises  of this  Warrant)  to be the number  which would then be in effect if
such  record  date had not been  fixed.  In  determining  whether  any rights or
warrants  entitle the Holder to subscribe for or purchase shares of Common Stock
at less than such Current Fair Market Value,  and in  determining  the aggregate
offering price of such shares of Common Stock, there shall be taken into account
any  consideration  received  for such  rights  or  warrants,  the value of such
consideration, if other than cash, to be determined by the Board of Directors.

                           8.  EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER
OR  SALE.   (a)  If  any  of  the  following   events  occur,   namely  (i)  any
reclassification or change of the outstanding shares of 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  or  combination),  (ii)  any
consolidation,  merger,  statutory  exchange or  combination of the Company with

<PAGE>

another  corporation  as a result  of which  holders  of Common  Stock  shall be
entitled  to  receive  stock,  other  securities  or other  property  or  assets
(including  cash) with respect to or in exchange for such Common Stock, or (iii)
any sale or  conveyance  of the  properties  and  assets of the  Company  as, or
substantially  as, an entirety to any other Person as a result of which  holders
of Common Stock shall be entitled to receive  stock,  other  securities or other
property or assets  (including  cash) with  respect to or in  exchange  for such
Common Stock,  then the Company,  the  successor or  purchasing  Person and each
Person who has agreed to issue such  stock or other  securities  or to  transfer
such other  property or assets shall execute and deliver to the Holder a written
agreement providing that (x) this Warrant shall thereafter entitle the Holder to
purchase the kind and amount of shares of stock and other securities or property
or  assets  (including  cash)  receivable  upon such  reclassification,  change,
consolidation,  merger, statutory exchange,  combination, sale or conveyance, by
the holder of a number of shares of Common Stock  issuable upon exercise of this
Warrant (assuming,  for such purposes,  a sufficient number of authorized shares
of Common Stock  available to exercise this Warrant)  immediately  prior to such
reclassification,    change,   consolidation,    merger,   statutory   exchange,
combination,  sale or  conveyance,  assuming such holder of Common Stock did not
exercise such holder's  rights of election,  if any, as to the kind or amount of
securities,  cash or  other  property  receivable  upon  such  reclassification,
change,  consolidation,   merger,  statutory  exchange,   combination,  sale  or
conveyance  (provided  that, if the kind or amount of securities,  cash or other
property receivable upon such reclassification,  change, consolidation,  merger,
statutory  exchange,  combination,  sale or  conveyance is not the same for each
share of Common Stock in respect of which such rights of election shall not have
been exercised  ("non-electing  share"), then for the purposes of this Section 8
the kind and amount of securities,  cash or other property  receivable upon such
reclassification,    change,   consolidation,    merger,   statutory   exchange,
combination,  sale or conveyance for each non-electing  share shall be deemed to
be  the  kind  and  amount  so  receivable  per  share  by a  plurality  of  the
non-electing shares), (y) in the case of any such successor or purchasing Person
or any such Person who has agreed to issue such stock or other  securities or to
transfer  such  other  property  or  assets,  upon such  consolidation,  merger,
statutory  exchange,   combination,   sale  or  conveyance,  such  successor  or
purchasing Person or any such Person who has agreed to issue such stock or other
securities  or to transfer  such other  property or assets  shall be jointly and
severally  liable with the Company for the  performance  of all of the Company's
obligations  under this Warrant,  the Purchase  Agreement  and the  Registration
Rights Agreement, and (z) if registration or qualification is required under the
1933 Act or  applicable  state law for the  public  resale by the Holder of such
shares of stock and Other  Securities so issuable upon exercise of this Warrant,
such   registration   or   qualification   shall  be  completed  prior  to  such
reclassification,  change,  consolidation,  merger,  combination  or sale.  Such
written  agreement  shall  provide  for  adjustments  which  shall be as  nearly
equivalent  as may  be  practicable  to the  adjustments  provided  for in  this
Warrant. If, in the case of any such  reclassification,  change,  consolidation,
merger, statutory exchange,  combination, sale or conveyance, the stock or other
securities  or other  property  or assets  receivable  thereupon  by a holder of
shares of Common Stock includes shares of stock, other securities other property
or assets of a Person other than the Company or any such successor or purchasing
Person,  as the case may be, in such  reclassification,  change,  consolidation,
merger, statutory exchange,  combination,  sale or conveyance, then such written
agreement  shall also be executed by such other  Person and shall  contain  such

<PAGE>

additional  provisions  to protect the  interests  of the Holder as the Board of
Directors shall reasonably consider necessary by reason of the foregoing.

                           (b)   The above  provisions of this  Section  8 shall
similarly  apply  to  successive  reclassifications,   changes,  consolidations,
mergers, combinations, sales and conveyances.

                           (c)   If  this  Section  8 applies  to  any  event or
occurrence, Section 5 shall not apply to such event or occurrence.

                           9.   TAX  ADJUSTMENTS.  The  Company  may  make  such
reductions in the Purchase  Price,  in addition to those required by Sections 4,
5, 6 and 7, as the Board of  Directors  considers  to be  advisable  to avoid or
diminish any income tax to holders of Common Stock or rights to purchase  Common
Stock resulting from any dividend or distribution of stock (or rights to acquire
stock) or from any event treated as such for income tax purposes.

                           10.   MINIMUM ADJUSTMENT. (a) No  adjustment  in  the
Purchase  Price  (and no  related  adjustment  in the number of shares of Common
Stock which may  thereafter be purchased upon exercise of this Warrant) shall be
required  unless  such  adjustment  would  require an increase or decrease of at
least 1% in the Purchase Price; provided, however, that any adjustments which by
reason of this Section 10 are not  required to be made shall be carried  forward
and taken into account in any subsequent adjustment. All such calculations under
this Warrant  shall be made by the Company and shall be made to the nearest cent
or to the nearest one hundredth of a share, as the case may be.

                           (b)    No adjustment need be made for a change in the
par value of the  Common  Stock or from par value to no par value or from no par
value to par value.

                           11.   NOTICE  OF  ADJUSTMENTS.  Whenever the Purchase
Price is adjusted as herein  provided,  the Company  shall  promptly,  but in no
event  later  than five  Trading  Days  thereafter,  give a notice to the Holder
setting forth the Purchase  Price and number of shares of Common Stock which may
be purchased  upon  exercise of this Warrant after such  adjustment  and setting
forth a brief  statement of the facts  requiring such  adjustment but which such
statement shall not include any information  which would be material  non-public
information  for purposes of the 1934 Act.  Failure to deliver such notice shall
not affect the legality or validity of any such adjustment.

                           12.  FURTHER ASSURANCES.  The Company will  take  all
action  that may be  necessary  or  appropriate  in order that the  Company  may
validly and legally  issue fully paid and  nonassessable  shares of stock,  free
from all taxes,  liens and charges  with  respect to the issue  thereof,  on the
exercise of all or any portion of this Warrant from time to time outstanding.

<PAGE>

                           13.   NOTICE TO HOLDER PRIOR  TO  CERTAIN ACTIONS. In
case on or after the Issuance Date:

                           (a)   the Company shall  declare  a dividend  (or any
other  distribution)  on its Common  Stock  (other  than in cash out of retained
earnings); or

                           (b)  the Company shall authorize the granting to  the
holders of its Common Stock of rights or warrants to  subscribe  for or purchase
any share of any class or any other rights or warrants; or

                           (c)   the  Board  of  Directors  shall  authorize any
reclassification of the Common Stock (other than a subdivision or combination of
its outstanding  Common Stock, or a change in par value, or from par value to no
par value, or from no par value to par value), or any consolidation or merger or
other business  combination  transaction to which the Company is a party and for
which approval of any  stockholders  of the Company is required,  or the sale or
transfer of all or substantially all of the assets of the Company; or

                           (d)   there shall be pending the  voluntary or
involuntary  dissolution,  liquidation or winding-up of the Company;

the Company  shall give the Holder,  as promptly as possible but in any event at
least ten Trading Days prior to the applicable  date  hereinafter  specified,  a
notice  stating (x) the date on which a record is to be taken for the purpose of
such dividend,  distribution or rights or warrants, or, if a record is not to be
taken, the date as of which the holders of Common Stock of record to be entitled
to such dividend,  distribution or rights are to be determined,  or (y) the date
on  which  such   reclassification,   consolidation,   merger,   other  business
combination transaction, sale, transfer, dissolution,  liquidation or winding-up
is  expected  to  become  effective  or  occur,  and the  date as of which it is
expected  that  holders  of Common  Stock of record  who  shall be  entitled  to
exchange their Common Stock for securities or other  property  deliverable  upon
such  reclassification,   consolidation,   merger,  other  business  combination
transaction,  sale,  transfer,  dissolution,  liquidation or winding-up shall be
determined.  Such  notice  shall not  include  any  information  which  would be
material  non-public  information for purposes of the 1934 Act.  Failure to give
such notice, or any defect therein, shall not affect the legality or validity of
such dividend,  distribution,  reclassification,  consolidation,  merger,  sale,
transfer, dissolution, liquidation or winding-up. In the case of any such action
of which the Company gives such notice to the Holder or is required to give such
notice to the Holder,  the Holder shall be entitled to give a subscription  form
to  exercise  this  Warrant  in  whole  or in  part  that is  contingent  on the
completion of such action.

                           14.  RESERVATION OF STOCK, ETC., ISSUABLE ON EXERCISE
OF WARRANTS. The Company will at all times reserve and keep available out of its
authorized  but  unissued  shares of  capital  stock,  solely for  issuance  and
delivery  on the  exercise of this  Warrant,  a  sufficient  number of shares of
Common Stock (or Other  Securities)  to effect the full exercise of this Warrant

<PAGE>

and the exercise,  conversion or exchange of all other Common Stock  Equivalents
from  time to time  outstanding  (or Other  Securities),  and if at any time the
number of authorized but unissued  shares of Common Stock (or Other  Securities)
shall not be sufficient  to effect such  exercise,  conversion or exchange,  the
Company  shall take such action as may be necessary  to increase its  authorized
but  unissued  shares of Common  Stock (or Other  Securities)  to such number as
shall be sufficient for such purposes.

                           15. TRANSFER OF WARRANT.  This Warrant shall inure to
the benefit of the  successors to and assigns of the Holder.  The Holder may not
assign or transfer this Warrant to a Person who is a business  competitor of the
Company  without the  Company's  prior  written  consent,  which the Company may
withhold in its sole discretion. This Warrant and all rights hereunder, in whole
or in part, are  registrable at the office or agency of the Company  referred to
below by the Holder in Person or by his duly authorized attorney, upon surrender
of this Warrant properly endorsed  accompanied by an assignment form in the form
attached  to this  Warrant,  or  other  customary  form,  duly  executed  by the
transferring Holder.

                           16. REGISTER OF WARRANTS. The Company shall maintain,
at the principal office of the Company (or such other office as it may designate
by notice to the Holder),  a register in which the Company shall record the name
and address of the Person in whose name this Warrant has been issued, as well as
the name and  address of each  successor  and prior owner of such  Warrant.  The
Company  shall be entitled to treat the Person in whose name this  Warrant is so
registered as the sole and absolute owner of this Warrant for all purposes.

                           17.  EXCHANGE  OF  WARRANT.  This  Warrant  is
exchangeable, upon the surrender hereof by the Holder at the office or agency of
the  Company  referred  to in Section  15, for one or more new  Warrants of like
tenor  representing in the aggregate the right to subscribe for and purchase the
number of  shares of Common  Stock  which may be  subscribed  for and  purchased
hereunder, each of such new Warrants to represent the right to subscribe for and
purchase  such number of shares as shall be designated by the Holder at the time
of such surrender.

                           18. REPLACEMENT OF WARRANT. On receipt by the Company
of evidence  reasonably  satisfactory  to it of the  ownership  of and the loss,
theft,  destruction  or  mutilation of this Warrant and (a) in the case of loss,
theft or destruction,  of indemnity from the Holder  reasonably  satisfactory in
form to the  Company  (and  without  the  requirement  to post any bond or other
security), or (b) in the case of mutilation,  upon surrender and cancellation of
this  Warrant,  the Company will execute and deliver to the Holder a new Warrant
of like tenor without charge to the Holder.

                           19. WARRANT AGENT. The Company may  by written notice
to the Holder,  appoint the transfer agent and registrar for the Common Stock as
the  Company's  agent  for  the  purpose  of  issuing  Common  Stock  (or  Other
Securities)  on the  exercise  of this  Warrant  pursuant  to Section 2, and the
Company may, by written notice to the Holder,  appoint an agent having an office

<PAGE>

in the United  States of America  for the  purpose of  exchanging  this  Warrant
pursuant to Section 17, and  replacing  this Warrant  pursuant to Section 18, or
any of the foregoing,  and thereafter any such exchange or  replacement,  as the
case may be, shall be made at such office by such agent.

                           20.  REMEDIES.  The Company  stipulates  that  the
remedies at law of the Holder in the event of any default or threatened  default
by the Company in the performance of or compliance with any of the terms of this
Warrant  are  not  and  will  not  be  adequate,  and  that  such  terms  may be
specifically  enforced by a decree for the specific performance of any agreement
contained  herein or by an  injunction  against a violation  of any of the terms
hereof or otherwise.

                           21.   NO RIGHTS OR LIABILITIES AS A STOCKHOLDER. This
Warrant  shall not entitle the Holder to any voting  rights or other rights as a
stockholder of the Company. Nothing contained in this Warrant shall be construed
as  conferring  upon the  Holder  the right to vote or to  consent or to receive
notice as a  stockholder  of the Company on any  matters or with  respect to any
rights  whatsoever  as a  stockholder  of the Company.  No dividends or interest
shall  be  payable  or  accrued  in  respect  of this  Warrant  or the  interest
represented  hereby  or the  Common  Stock  (or  Other  Securities)  purchasable
hereunder  until,  and only to the extent  that,  this  Warrant  shall have been
exercised in accordance with its terms.

                          22. NOTICES, ETC. All notices and other communications
from the Company to the Holder shall be in writing and delivered personally,  by
confirmed  facsimile,  by a nationally  recognized  overnight courier service or
mailed  by first  class  certified  mail,  postage  prepaid,  at such  facsimile
telephone number or address as may have been furnished to the Company in writing
by the Holder or at such facsimile telephone number or the address shown for the
Holder on the register of Warrants referred to in Section 16.

                           23. TRANSFER RESTRICTIONS.  This Warrant has not been
and is not being  registered  under the  provisions of the 1933 Act or any state
securities laws and this Warrant may not be transferred  prior to the end of the
holding  period  applicable  to sales  hereof  under Rule 144(k)  unless (1) the
transferee  is an  "accredited  investor"  (as defined in Regulation D under the
1933 Act) or a QIB in a transfer that meets the  requirements  of Rule 144A, and
(2) the  Holder  shall have  delivered  to the  Company  an opinion of  counsel,
reasonably  satisfactory  in form,  scope and  substance to the Company,  to the
effect that this Warrant may be sold or transferred  without  registration under
the 1933 Act. Prior to any such transfer, such transferee shall have represented
in writing to the Company that such  transferee  has requested and received from
the Company all information  relating to the business,  properties,  operations,
condition  (financial  or other),  results of  operations  or  prospects  of the
Company deemed  relevant by such  transferee;  and that such transferee has been
afforded  the  opportunity  to ask  questions  of  the  Company  concerning  the
foregoing  and has had the  opportunity  to obtain and  review the  Registration
Statement and the prospectus related thereto, each as amended or supplemented to
the date of transfer to such transferee,  and the reports and other  information
concerning the Company which at the time of such transfer have been filed by the

<PAGE>

Company  with the SEC  pursuant  to the 1934 Act and which are  incorporated  by
reference in such  prospectus as of the date of such transfer.  If such transfer
is  intended  to assign the rights and  obligations  of the Holder the  Purchase
Agreement and the Registration  Rights Agreement,  such transfer shall otherwise
be made in compliance with the applicable  provisions of the Purchase  Agreement
and the Registration Rights Agreement.

                           24.  RULE 144A  INFORMATION  REQUIREMENT.  Within the
period prior to the expiration of the holding period  applicable to sales hereof
under Rule 144(k) under the 1933 Act (or any successor  provision),  the Company
covenants and agrees that it shall, during any period in which it is not subject
to Section 13 or 15(d) under the 1934 Act, make  available to the Holder and the
holder of any shares of Common Stock issued upon  exercise of this Warrant which
continue to be Restricted Securities in connection with any sale thereof and any
prospective  purchaser of this Warrant from the Holder, the information required
pursuant  to Rule  144A(d)(4)  under the 1933 Act upon the request of the Holder
and it will take such further action as the Holder may reasonably  request,  all
to the  extent  required  from  time to time to enable  the  Holder to sell this
Warrant  without  registration  under the 1933 Act within the  limitation of the
exemption  provided by Rule 144A, as Rule 144A may be amended from time to time.
Upon the request of the Holder, the Company will deliver to the Holder a written
statement as to whether it has complied with such requirements.

                           25.  LEGEND.  The  provisions  of Section 6.12 of the
Purchase Agreement and the related definitions of capitalized terms used therein
and defined in the Purchase Agreement are by this reference  incorporated herein
as if set forth in full at this place.

                           26.  AMENDMENT;  WAIVER.  This Warrant  and any terms
hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which  enforcement  of such change,  waiver,
discharge or termination is sought.

                           27.  MISCELLANEOUS.  This  Warrant shall be construed
and enforced in  accordance  with and governed by the internal laws of the State
of Nevada.  The Company  hereby agrees that all actions or  proceedings  arising
directly  or  indirectly  from or in  connection  with  this  Warrant  shall  be
litigated only in the United States District Court for the Northern  District of
Texas located in Dallas County,  Dallas, Texas. The Company consents and submits
to the  jurisdiction  and venue of the  foregoing  court and  consents  that any
process  or  notice  of motion  or other  application  to said  court or a judge
thereof  may be served  inside  or  outside  the State of Texas or the  Northern
District  of Texas (but such  consent  shall not be deemed a general  consent to
jurisdiction  and service  for any third  parties) by  registered  mail,  return
receipt  requested,  directed  to the  Company  at its  address  provided  in or
pursuant to the Purchase Agreement (and service so made shall be deemed complete
three (3) days  after  the same has been  posted as  aforesaid)  or by  personal
service or in such other  manner as may be  permissible  under the rules of said
court.  The Company  hereby waives any right to a jury trial in connection  with

<PAGE>

any litigation pursuant to this Warrant.  The headings,  captions and footers in
this  Warrant  are for  purposes  of  reference  only,  and  shall  not limit or
otherwise affect any of the terms hereof. The invalidity or  unenforceability of
any provision  hereof shall in no way affect the validity or  enforceability  of
any other provision.

                           28.  ATTORNEYS' FEES.  In any litigation, arbitration
or court  proceeding  between  the  Company  and  Holder  relating  hereto,  the
prevailing party shall be entitled to attorneys' fees and expenses and all costs
of proceedings incurred in enforcing this Warrant.

                            [Signature Page Follows]

<PAGE>

                  IN WITNESS WHEREOF,  the Company has caused this Warrant to be
duly executed on its behalf by one of its officers thereunto duly authorized.

Dated:  December 22, 2003  KNIGHTSBRIDGE FINE WINES, INC.

                                                By: /s/ Joel Shapiro
                                                    --------------------
                                                 Name:  Joel Shapiro
                                                Title:  President & CEOExhibit 10.4

                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT, dated as of  December  22,
2003 (this "Agreement"), by and between KNIGHTSBRIDGE FINE WINES, INC., a Nevada
corporation  (the  "Company"),  and GRYPHON MASTER FUND, L.P., a Bermuda limited
partnership ("Gryphon").

                              W I T N E S S E T H:
                              - - - - - - - - - -
                  WHEREAS,  in  connection  with the  Purchase  Agreement  (such
capitalized  term  and all  other  capitalized  terms  used  herein  having  the
respective meanings provided herein),  the Company has agreed to provide certain
registration rights under the 1933 Act and applicable state securities laws with
respect  to the  Registrable  Securities  issuable  to Gryphon  pursuant  to the
Purchase Agreement;
                  NOW,  THEREFORE,  in  consideration  of the  premises  and the
mutual covenants contained herein and other good and valuable consideration, the
receipt and  sufficiency of which are hereby  acknowledged,  the Company and the
Purchasers hereby agree as follows:
                  1. Definitions.
                  (a)  As  used  in  this  Agreement,   the  terms  "Agreement",
"Company"  and "Gryphon"  shall have the  respective  meanings  assigned to such
terms in the introductory paragraph of this Agreement.
                  (b) All the  agreements or  instruments  herein  defined shall
mean  such  agreements  or  instruments  as the same  may  from  time to time be
supplemented  or amended or the terms  thereof  waived or modified to the extent
permitted by, and in accordance with, the terms thereof and of this Agreement.

                  (c) The  following  terms  shall have the  following  meanings
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

                  "Additional Registrable Securities" means any shares of Common
         Stock  which  are  included   within  the   definition  of  Registrable
         Securities  but  not  included  in  any  Registration  Statement  filed
         pursuant to Section 2(a)(i) below.

                  "Allowed  Delay"  shall have the  meaning  provided in Section
         2(c)(ii).

                  "Approved Market" shall have the meaning provided in Section 2
         (c)(i).

                  "Availability  Date"  shall  have  the  meanings  provided  in
         Section 3(l).

                  "Blackout  Period" shall have the meaning  provided in Section
         2(c)(i).

                  "Common  Stock"  means the Common  Stock,  par value $.001 per
         share, of the Company.

                  "Conversion  Price"  shall have the  meaning  provided  in the
         Note.

                  "Initial Registrable Securities Amount" shall have the meaning
         provided in Section 2(a)(i).

                  "1934  Act"  means the  Securities  Exchange  Act of 1934,  as
         amended, and the rules and regulations promulgated thereunder.

                  "1933 Act" means the Securities  Act of 1933, as amended,  and
         the rules and regulations promulgated thereunder.

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                  "NASD" means the National  Association of Securities  Dealers,
         Inc.
                  "Prospectus" means the prospectus included in any Registration
         Statement,  as amended or  supplemented  by any prospectus  supplement,
         with  respect  to the  terms  of the  offering  of any  portion  of the
         Registrable  Securities or Additional Registrable Securities covered by
         such Registration Statement and by all other amendments and supplements
         to the prospectus, including post-effective amendments and all material
         incorporated by reference in such prospectus.
                  "Purchase Agreement" means the Purchase Agreement, dated as of
         December 22, 2003, by and between the Company and Gryphon.
                  "Purchasers"  means Gryphon and each subsequent  holder of the
         Note,  the Warrant,  Registrable  Securities or Additional  Registrable
         Securities, or any portion thereof.
                  "register,"   "registered"  and  "registration"   refer  to  a
         registration  made by preparing and filing a registration  statement or
         similar  document in compliance  with the 1933 Act (as defined  below),
         and the declaration or ordering of effectiveness  of such  registration
         statement or document by the SEC.
                  "Registrable  Securities" means (i) the Underlying Shares, the
         Warrant  Shares  and the  shares  of Common  Stock or other  securities
         issued or issuable to the  Purchaser  or its  permitted  transferee  or
         designee  (a) upon  conversion  of the Note  and upon  exercise  of the
         Warrant, or (b) upon any distribution with respect to, any exchange for
         or any  replacement  of  the  Note  or the  Warrant,  or (c)  upon  any
         conversion, exercise or exchange of any securities issued in connection
         with any such  distribution,  exchange or replacement;  (ii) securities
         issued   or   issuable   upon  any   stock   split,   stock   dividend,
         recapitalization or similar event with respect to such shares of Common
         Stock;  and (iii)  any other  security  issued as a  dividend  or other
         distribution  with respect to, in exchange for, or in  replacement  of,
         the securities referred to in the preceding clauses.
                  "Registration Date" shall have the meaning provided in Section
                  2(c)(i).

                  "Registration Period" shall have the meaning provided in
         Section 3(a).
                  "Registration Statement" shall mean any registration statement
         of the  Company  filed under the 1933 Act that covers the resale of any
         of the  Registrable  Securities  or Additional  Registrable  Securities
         pursuant  to  the   provisions  of  this   Agreement,   amendments  and
         supplements to such Registration  Statement,  including  post-effective
         amendments,  all exhibits and all material incorporated by reference in
         such Registration Statement.
                  "SEC" means the U.S. Securities and Exchange Commission.
                  "Underlying  Shares" means the shares of Common Stock issuable
         upon conversion of, or otherwise in respect of, the Note.
                  "Warrant  Shares"  means the shares of Common  Stock  issuable
                  upon exercise of, or otherwise in respect of, the Warrant.
                  (d)  Capitalized terms  used herein but not otherwise  defined
         herein shall have the respective meanings assigned to such terms in the
         Purchase Agreement.
                  2. Registration.
                  (a) Registration Statements.
                  (I) REGISTRABLE SECURITIES.  Promptly following the Closing of

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         the purchase and sale of the Note and the Warrant  contemplated  by the
         Purchase  Agreement  on the  Closing  Date  (but,  subject  to  Section
         2(a)(iii),  no later than ten (10) days after the  Closing  Date),  the
         Company shall prepare and file with the SEC one Registration  Statement
         on Form S-3 (or, if Form S-3 is not then  available to the Company,  on
         such form of  registration  statement as is then  available to effect a
         registration for resale of the Registrable  Securities,  subject to the
         Purchaser's consent), covering the resale of the Registrable Securities
         in an  amount  at least  equal to the sum of (1) 125% of the  number of
         Underlying Shares that would be issuable upon conversion of the Note in
         full  plus (2) 100% of the  number  of  Warrant  Shares  issuable  upon
         exercise of the Warrant in full for cash, in each case in the preceding
         clauses (1) and (2),  determined  without regard to any restrictions on
         beneficial ownership contained in the Note, the Warrant or the Purchase
         Agreement (such sum the "Initial Registrable Securities Amount").  Such
         Registration  Statement also shall cover, to the extent allowable under
         the 1933 Act and the rules promulgated thereunder (including Rule 416),
         such  indeterminate   number  of  additional  shares  of  Common  Stock
         resulting from stock splits,  stock  dividends or similar  transactions
         with  respect  to  the  Registrable  Securities.  In  the  Registration
         Statement the Purchaser shall be identified as a selling securityholder
         and not as an  underwriter.  No securities  other than the  Registrable
         Securities shall be included in the Registration  Statement without the
         consent  of  the  Purchaser.   The  Registration  Statement  (and  each
         amendment or supplement  thereto) shall be provided in accordance  with
         Section 3(c) to the  Purchaser  and its counsel  prior to its filing or
         other  submission.  If at any time the number of shares of Common Stock
         included in a Registration  Statement  required to be filed as provided
         in  this  Section  2(a)  and  remaining  unsold   thereunder  shall  be
         insufficient to cover the resale of Registrable Securities in an amount
         at  least  equal  to the sum of (x) 125% of the  number  of  Underlying
         Shares that would be issuable upon conversion in full of the Note, plus
         (y) 100% of the number of Warrant Shares  issuable upon exercise of the
         Warrant  outstanding at such time in full for cash, in each case in the
         preceding  clauses  (x)  and  (y)  determined  without  regard  to  any
         restrictions on beneficial ownership contained in the Note, the Warrant
         or the Purchase Agreement, then promptly, but in no event later than 30
         days after such insufficiency  shall occur, the Company shall file with
         the SEC an additional  Registration Statement on Form S-3 covering such
         number of shares of Common Stock as shall be  sufficient  to cover such
         amount.  Except as set forth above, the requirements  with respect to a
         subsequent Registration Statement shall be the same as those applicable
         to the initial Registration Statement.

                  (II) ADDITIONAL REGISTRABLE  SECURITIES.  At any time and from
         time to time,  promptly  following the written  demand of the Purchaser
         following the issuance of any Additional Registrable Securities, and in
         any event  within 30 days  following  such  demand,  the Company  shall
         prepare and file with the SEC either a new Registration  Statement or a
         post-effective  amendment to a previously filed Registration Statement,
         to the extent  permitted  under the 1933 Act,  on Form S-3 (or, if Form
         S-3 is not then available to the Company,  on such form of registration
         statement as is then available to effect a  registration  for resale of
         the  Additional  Registrable  Securities)  covering  the  resale of the
         Additional  Registrable  Securities in an amount equal to the number of
         Additional  Registrable  Securities.  Such Registration  Statement also
         shall cover,  to the extent  allowable under the 1933 Act and the rules

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         promulgated  thereunder (including Rule 416), such indeterminate number
         of additional shares of Common Stock resulting from stock splits, stock
         dividends  or  similar  transactions  with  respect  to the  Additional
         Registrable Securities.  The Registration Statement (and each amendment
         or supplement  thereto)  shall be provided in  accordance  with Section
         3(c) to the  Purchaser  and its  counsel  prior to its  filing or other
         submission.
                  (iii)  If  the  Company  proposes  to  file  with  the  SEC  a
         registration  statement (other than on Form S-8) relating to securities
         other  than  the  Registrable   Securities  or  Additional  Registrable
         Securities,  then on or before  the date the  Company  files such other
         registration  statement  with  the  SEC  the  Company  shall  file  the
         Registration Statement required by Section 2(a)(i) with the SEC. In any
         such case, the Company shall not request  acceleration of effectiveness
         of such other registration  statement unless  simultaneously  therewith
         the Company requests  acceleration of effectiveness of the Registration
         Statement  to the same  date and time as so  requested  for such  other
         registration statement.

                  (b) Expenses.  The Company  will pay all  expenses  associated
         with each registration,  including the Purchaser's  reasonable expenses
         (including   reasonable   attorneys   fees)  in  connection   with  the
         registration   but   excluding   discounts,    commissions,   fees   of
         underwriters,  selling brokers,  dealer managers or similar  securities
         industry  professionals.

                  (c) Effectiveness.

                  (i) The  Company  shall use  its  best  efforts  to  have each
         Registration  Statement declared effective as soon as practicable after
         it is filed with the SEC. If (A) the Company fails to file with the SEC
         a Registration  Statement on or before the date by which the Company is
         required to file the Registration Statement pursuant to Section 2(a)(i)
         above,  (B) the  Company  fails to file  with the SEC the  Registration
         Statement  covering  Additional  Registrable  Securities within 30 days
         following   demand  of  the  Purchaser   relating  to  the   Additional
         Registrable  Securities  to be covered  thereby,  (C) the  Registration
         Statement covering Registrable  Securities is not declared effective by
         the SEC within 90 days following the Closing Date, or the  Registration
         Statement covering  Additional  Registrable  Securities is not declared
         effective by the SEC within 90 days  following  demand of the Purchaser
         relating to the Additional Registrable Securities to be covered thereby
         (each, a "Registration  Date"), (D) after a Registration  Statement has
         been  declared  effective by the SEC,  sales cannot be made pursuant to
         such  Registration   Statement  for  any  reason   (including   without
         limitation  by reason of a stop  order,  or the  Company's  failure  to
         update the  Registration  Statement) but except as excused  pursuant to
         subparagraph  (ii)  below,  (E)  the  Common  Stock  generally  or  the
         Registrable  Securities (or  Additional  Registrable  Securities  after
         issuance)  specifically are not listed or included for quotation on the
         OTC Bulletin Board,  the Nasdaq,  the Nasdaq Small Cap, the NYSE or the
         AMEX (each an  "Approved  Market"),  or trading of the Common  Stock is
         suspended  or  halted  on  the  Approved   Market  which  at  the  time
         constitutes  the  principal  market  for the Common  Stock,  or (F) the
         Company  fails,   refuses  or  is  otherwise  unable  timely  to  issue
         Underlying  Shares upon  conversion of the Note or Warrant  Shares upon
         exercise  of the Warrant in  accordance  with the terms of the Note and
         the Warrant, or certificates therefor as required under the Transaction
         Documents,  then the Company  will make  payments to the  Purchaser  as
         partial  liquidated  damages for the  minimum  amount of damages to the
         Purchaser by reason thereof,  and not as a penalty,  at the rate of (1)

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         one percent (1%) of the purchase price of the Note and the Warrant paid
         by the  Purchaser  pursuant to the Purchase  Agreement for the first 30
         day period,  and (2) two percent (2%) of the purchase price of the Note
         and  the  Warrant  paid  by the  Purchaser  pursuant  to  the  Purchase
         Agreement for the each 30 day period  thereafter  (in either case,  pro
         rated for any period less than 30 days), during which any of the events
         described in clause (A),  (B), (C), (D), (E) or (F) above occurs and is
         continuing (the "Blackout Period").  Each such payment shall be due and
         payable  within five (5) days after the end of each  calendar  month of
         the Blackout  Period until the  termination of the Blackout  Period and
         within five (5) days after such termination.  Such payments shall be in
         partial  compensation  to the  Purchaser,  and shall not constitute the
         Purchaser's exclusive remedy for such events. The Blackout Period shall
         terminate upon (v) the filing of the applicable  Registration Statement
         in the case of clauses (A) and (B) above; (w) the  effectiveness of the
         applicable  Registration  Statement  in the case of clauses (C) and (D)
         above;  (x) listing or inclusion  and/or trading of the Common Stock on
         an  Approved  Market,  as the case may be,  in the case of  clause  (E)
         above;  (y)  delivery  of such  shares or  certificates  in the case of
         clause  (F)  above;  and (z) in the  case of the  events  described  in
         clauses (C) or (D) above,  the earlier  termination of the Registration
         Period (as  defined in Section  3(a)  below).  The  amounts  payable as
         liquidated damages pursuant to this paragraph shall be payable,  at the
         option of the  Purchaser,  in lawful  money of the United  States or in
         shares of Common Stock valued for this purpose at the Conversion Price.
         Amounts  payable as liquidated  damages  hereunder shall cease when the
         Purchaser no longer holds the Note, the Warrant, Registrable Securities
         or Additional Registrable  Securities.

                  (ii)  For not more  than five (5) consecutive  Trading Days or
         for a total of not more  than 20  Trading  Days in any  consecutive  12
         month  period,  the  Company  may  delay  the  disclosure  of  material
         non-public  information  concerning  the  Company,  by  terminating  or
         suspending  effectiveness  of any  registration  contemplated  by  this
         Section, the disclosure of which information at the time is not, in the
         good faith opinion of the Company, in the best interests of the Company
         or would be unduly  detrimental  to the Company's  affairs (an "Allowed
         Delay");  provided,  that the  Company  shall  promptly  (a) notify the
         Purchaser in writing of the existence of (but in no event,  without the
         prior written consent of the Purchaser,  shall the Company  disclose to
         the Purchaser  any of the facts or  circumstances  regarding)  material
         non-public  information giving rise to an Allowed Delay, and (b) advise
         the  Purchaser  in  writing to cease all sales  under the  Registration
         Statement  until  the  end  of  the  Allowed  Delay.

                  (d)   Underwritten Offering.  If any  offering  pursuant  to a
         Registration  Statement  filed pursuant to Section 2(a) hereof involves
         an underwritten  offering, the Purchaser shall have the right to select
         an  investment  banker and manager to administer  the  offering,  which
         investment  banker or manager shall be reasonably  satisfactory  to the
         Company.

                  3. Company Obligations.  The Company will use its best efforts
         to effect the registration of the Registrable Securities and Additional
         Registrable  Securities  in  accordance  with  the  terms  hereof,  and
         pursuant thereto the Company will, as  expeditiously  as possible:
                  (a) use its best efforts to cause such Registration  Statement
         to become effective and to remain  continuously  effective for a period
         (the "Registration Period") that will terminate upon the earlier of (i)
         the date on which all Registrable  Securities or Additional Registrable

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         Securities  have  been  sold  (and the Note and the  Warrant  no longer
         remain outstanding),  (ii) the date on which all Registrable Securities
         or Additional Registrable  Securities,  as the case may be, may be sold
         pursuant  to Rule  144(k)  (and the Note and  Warrant no longer  remain
         outstanding), and (iii) the second anniversary of the Closing Date;
                  (b) prepare and file with the SEC such amendments,
         post-effective   amendments   and   prospectus   supplements   to   the
         Registration  Statement and the  Prospectus as may be necessary to keep
         the  Registration  Statement  effective  for the  period  specified  in
         Section 3(a) and to comply with the  provisions of the 1933 Act and the
         1934 Act with respect to the distribution of all Registrable Securities
         and  Additional  Registrable  Securities;  provided  that,  at  a  time
         reasonably  prior  to  the  filing  of  a  Registration   Statement  or
         Prospectus,  or any amendments or supplements thereto, the Company will
         furnish to the Purchaser copies of all documents  proposed to be filed,
         which  documents  will be  subject  to the  comments  of the  Purchaser
         provided  reasonably  promptly  after  receipt of such  documents;
                  (c)  permit counsel designated by the Purchaser to review each
         Registration   Statement  and   Prospectus   and  all   amendments  and
         supplements  thereto no fewer than seven (7) Business  Days (or as many
         Business  Days as possible if SEC rules do not allow such time for such
         review) prior to their filing with the SEC and not file any document to
         which such counsel reasonably objects;
                 (d) furnish to the Purchaser and its legal counsel (i) promptly
         after the same is prepared  and  publicly  distributed,  filed with the
         SEC, or received by the Company, one copy of any Registration Statement
         and any amendment thereto,  each preliminary  prospectus and Prospectus
         and each amendment or supplement thereto, and each letter written by or
         on behalf of the  Company to the SEC or the staff of the SEC,  and each
         item of  correspondence  from the SEC or the staff of the SEC,  in each
         case relating to such Registration Statement (other than any portion of
         any thereof which contains information for which the Company has sought
         confidential   treatment),   and  (ii)  such  number  of  copies  of  a
         Prospectus,  including a preliminary prospectus, and all amendments and
         supplements  thereto  and such other  documents  as the  Purchaser  may
         reasonably  request  in  order to  facilitate  the  disposition  of the
         Registrable  Securities and Additional  Registrable Securities owned by
         the Purchaser;
                  (e) in the event the Purchaser selects an underwriter  for the
         offering,  the Company  shall  enter into and  perform its  obligations
         under  an  underwriting   agreement,   in  usual  and  customary  form,
         including,   without   limitation,    customary   indemnification   and
         contribution obligations, with the underwriter of such offering;
                  (f) if required by the underwriter,  or if the Purchaser    is
         described in the Registration Statement as an underwriter,  the Company
         shall furnish, on the effective date of the Registration  Statement, on
         the  date  that  Registrable   Securities  or  Additional   Registrable
         Securities, as applicable, are delivered to an underwriter, if any, for
         sale in  connection  with the  Registration  Statement  and at periodic
         intervals  thereafter  from time to time on  request,  (i) an  opinion,
         dated as of such date, from independent legal counsel  representing the
         Company for purposes of such Registration Statement, in form, scope and
         substance as is customarily  given in an underwritten  public offering,
         addressed  to the  underwriter  and the  Purchaser,  and (ii) a letter,
         dated  such  date,  from the  Company's  independent  certified  public
         accountants  in  form  and  substance  as  is   customarily   given  by

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         independent   certified  public   accountants  to  underwriters  in  an
         underwritten  public  offering,  addressed to the  underwriter  and the
         Purchaser;
                  (g) to  prevent  the  issuance  of any  stop  order  or  other
         suspension of  effectiveness  and, if such order is issued,  obtain the
         withdrawal  of any such  order at the  earliest  possible  moment;
                  (h) furnish  to the  Purchaser  at least  five  copies  of the
         Registration  Statement  and  any  post-effective   amendment  thereto,
         including  financial  statements and schedules by air mail or reputable
         courier  within  three  (3)  Business  Days  after the  effective  date
         thereof;
                  (i) prior to any public offering of  Registrable Securities or
         Additional Registrable Securities,  use its best efforts to register or
         qualify or cooperate  with the  Purchaser and its counsel in connection
         with the registration or qualification of the Registrable Securities or
         Additional Registrable  Securities,  as applicable,  for offer and sale
         under the securities or blue sky laws of such  jurisdictions  requested
         by the  Purchaser  and do any and all other  reasonable  acts or things
         necessary or advisable to enable the distribution in such jurisdictions
         of the  Registrable  Securities  or Additional  Registrable  Securities
         covered  by the  Registration  Statement;
                  (j) cause all Registrable Securities or Additional Registrable
         Securities  covered by a  Registration  Statement  to be listed on each
         securities  exchange,  interdealer  quotation system or other market on
         which similar securities issued by the Company are then listed;
                  (k)  immediately  notify  the  Purchaser  at any  time  when a
         Prospectus  relating  to  the  Registrable   Securities  or  Additional
         Registrable  Securities is required to be delivered under the 1933 Act,
         upon discovery  that, or upon the happening of any event as a result of
         which, the Prospectus included in such Registration  Statement, as then
         in effect,  includes an untrue statement of a material fact or omits to
         state any material fact  required to be stated  therein or necessary to
         make the statements  therein,  in the light of the circumstances  under
         which made,  not  misleading,  and at the  request of any such  holder,
         promptly  prepare  and furnish to such  holder a  reasonable  number of
         copies of a supplement to or an amendment of such  Prospectus as may be
         necessary so that,  as thereafter  delivered to the  purchasers of such
         Registrable  Securities  or  Additional  Registrable   Securities,   as
         applicable,  such Prospectus shall not include an untrue statement of a
         material  fact or omit to state a material  fact  required to be stated
         therein or necessary to make the  statements  therein not misleading in
         the light of the circumstances then existing; and
                  (l)  otherwise  to  comply  with  all  applicable   rules  and
         regulations  of the SEC under the 1933 Act and the 1934 Act,  take such
         other  actions  as  may  be  reasonably  necessary  to  facilitate  the
         registration of the Registrable  Securities and Additional  Registrable
         Securities,  if  applicable,  hereunder;  and  make  available  to  its
         security holders, as soon as reasonably practicable, but not later than
         the Availability  Date, an earnings  statement  covering a period of at
         least  12  months,   beginning   after  the  effective   date  of  each
         Registration  Statement,  which  earnings  statement  shall satisfy the
         provisions  of Section  11(a) of the 1933 Act (for the  purpose of this

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         subsection 3(l),  "Availability  Date" means the 45th day following the
         end of the fourth  fiscal  quarter  following  the fiscal  quarter that
         includes the  effective  date of such  Registration  Statement,  except
         that,  if  such  fourth  fiscal  quarter  is the  last  quarter  of the
         Company's fiscal year, "Availability Date" means the 90th day after the
         end of such fourth fiscal quarter).

                  4. Due Diligence Review;  Information.  The Company shall make
         available,  during normal business hours,  for inspection and review by
         the Purchaser,  advisors to and  representatives  of the Purchaser (who
         may or may not be affiliated  with the Purchaser and who are reasonably
         acceptable to the Company),  and any underwriter  participating  in any
         disposition of Common Stock on behalf of the Purchaser  pursuant to the
         Registration Statement or amendments or supplements thereto or any blue
         sky, NASD, or other filing,  all financial and other  records,  all SEC
         Filings  and  other  filings  with the  SEC,  and all  other  corporate
         documents and properties of the Company as may be reasonably  necessary
         for  the  purpose  of  establishing  a  due  diligence   defense  under
         applicable  securities  laws and such other  reasonable  purposes,  and
         cause  the  Company's  officers,  directors  and  employees,  within  a
         reasonable  time  period,  to supply  all such  information  reasonably
         requested  by the  Purchaser  or any such  representative,  advisor  or
         underwriter in connection with such Registration  Statement (including,
         without  limitation,  in response to all questions and other  inquiries
         reasonably made or submitted by any of them), prior to and from time to
         time after the filing and  effectiveness of the Registration  Statement
         for  the   sole   purpose   of   enabling   the   Purchaser   and  such
         representatives,   advisors  and   underwriters  and  their  respective
         accountants  and attorneys to conduct initial and ongoing due diligence
         with  respect  to the  Company  and the  accuracy  of the  Registration
         Statement.
                  The above to the contrary  notwithstanding,  the Company shall
         not disclose  material  nonpublic  information to the Purchaser,  or to
         advisors  to or  representatives  of the  Purchaser,  unless  prior  to
         disclosure of such information the Company  identifies such information
         as being  material  nonpublic  information  and provides the Purchaser,
         such advisors and  representatives  with the  opportunity  to accept or
         refuse to accept such material  nonpublic  information for review.  The
         Company  may, as a  condition  to  disclosing  any  material  nonpublic
         information   hereunder,   require   the   Purchaser's   advisors   and
         representatives to enter into a confidentiality agreement (including an
         agreement with such advisors and representatives  prohibiting them from
         trading  in  Common  Stock  during  such  period of time as they are in
         possession  of  material  nonpublic  information)  in  form  reasonably
         satisfactory  to the Company and the  Purchaser.  Nothing  herein shall
         require the Company to disclose material  nonpublic  information to the
         Purchaser or its advisors or representatives.

<PAGE>

                  5. Obligations of the Purchaser.
                  (a) The Purchaser shall furnish in writing to the Company such
         information regarding itself, the Registrable  Securities or Additional
         Registrable  Securities,  as  applicable,  held by it and the  intended
         method of  disposition  of the  Registrable  Securities  or  Additional
         Registrable Securities, as applicable, held by it, as shall be required
         by  the  1933  Act to  effect  the  registration  of  such  Registrable
         Securities or Additional  Registrable  Securities,  as applicable,  and
         shall execute such documents in connection  with such  registration  as
         the Company may  reasonably  request.  At least ten (10)  Business Days
         prior  to  the  first  anticipated  filing  date  of  any  Registration
         Statement  (or  such  shorter  period  as  may  be  agreed  to  by  the
         Purchaser),  the Company shall notify the Purchaser of the  information
         the Company requires from the Purchaser if the Purchaser's  Registrable
         Securities or Additional  Registrable  Securities are to be included in
         the Registration Statement.
                  (b)  The  Purchaser,  by its  acceptance  of  the  Registrable
         Securities and Additional  Registrable  Securities,  if any,  agrees to
         cooperate  with the Company as  reasonably  requested by the Company in
         connection with the preparation and filing of a Registration  Statement
         hereunder,  unless the Purchaser has notified the Company in writing of
         its election to exclude all of its Registrable Securities or Additional
         Registrable Securities, as applicable, from the Registration Statement.
                  (c) If the  Purchaser  determines to engage the services of an
         underwriter, which underwriter is reasonably acceptable to the Company,
         the Purchaser agrees to enter into and perform its obligations under an
         underwriting agreement, in usual and customary form, including, without
         limitation,  customary  indemnification  and contribution  obligations,
         with the  managing  underwriter  of such  offering  and take such other
         actions as are  reasonably  required in order to expedite or facilitate
         the   dispositions   of  the   Registrable   Securities  or  Additional
         Registrable Securities, as applicable.

                  (d) The Purchaser agrees that, upon receipt of any notice from
         the Company of the  happening  of any event  rendering  a  Registration
         Statement no longer  effective or available  for use by the  Purchaser,
         the Purchaser will immediately  discontinue  disposition of Registrable
         Securities  or  Additional   Registrable  Securities  pursuant  to  the
         Registration   Statement   covering  such  Registrable   Securities  or
         Additional Registrable Securities, until the Purchaser's receipt of the
         copies of the supplemented or amended Prospectus filed with the SEC and
         declared  effective  and, if so directed by the Company,  the Purchaser
         shall deliver to the Company (at the expense of the Company) or destroy
         all copies in the Purchaser's possession of the Prospectus covering the
         Registrable  Securities  or  Additional  Registrable   Securities,   as
         applicable, current at the time of receipt of such notice.
                  (e)  The  Purchaser  may   participate   in  any  third  party
         underwritten  registration  hereunder  unless it (i) agrees to sell the
         Registrable  Securities  or  Additional  Registrable   Securities,   as
         applicable,  on the basis provided in any underwriting  arrangements in
         usual and customary form entered into by the Purchaser,  (ii) completes
         and  executes  all  questionnaires,  powers of  attorney,  indemnities,
         underwriting  agreements and other documents  reasonably required under
         the terms of such  underwriting  arrangements,  and (iii) agrees to pay
         its pro rata share of all  underwriting  discounts and  commissions and
         any expenses in excess of those payable by the Company  pursuant to the
         terms of this Agreement.

<PAGE>

                  6. Indemnification.
                  (a)   Indemnification  by  Company.   The  Company  agrees  to
         indemnify and hold harmless,  to the fullest  extent  permitted by law,
         the Purchaser,  each investment  advisor and investment  sub-advisor of
         the  Purchaser  and  each  of  their  respective  officers,  directors,
         partners,  members  and  employees  and each  person who  controls  the
         Purchaser  (within  the  meaning of the 1933 Act)  against  all losses,
         claims,  damages,  liabilities,  costs (including,  without limitation,
         reasonable  attorney's fees) and expenses imposed on such person caused
         by (i) any  untrue or  alleged  untrue  statement  of a  material  fact
         contained in any Registration Statement,  Prospectus or any preliminary
         prospectus or any  amendment or  supplement  thereto or any omission or
         alleged omission to state therein a material fact required to be stated
         therein or necessary  to make the  statements  therein not  misleading,
         except insofar as the same are based upon any information  furnished in
         writing to the Company by the Purchaser,  expressly for use therein, or
         (ii) any violation by the Company of any federal,  state or common law,
         rule or regulation  applicable  to the Company in  connection  with any
         Registration Statement,  Prospectus or any preliminary  prospectus,  or
         any amendment or supplement thereto,  and shall reimburse in accordance
         with  subparagraph  (c) below,  each of the  foregoing  persons for any
         legal and any other  expenses  reasonably  incurred in connection  with
         investigating or defending any such claims. The foregoing is subject to
         the condition that, insofar as the foregoing  indemnities relate to any
         untrue  statement,  alleged  untrue  statement,   omission  or  alleged
         omission  made in any  preliminary  prospectus  or  Prospectus  that is
         eliminated  or remedied in any  Prospectus  or amendment or  supplement
         thereto, the above indemnity obligations of the Company shall not inure
         to the  benefit of any  indemnified  party if a copy of such  corrected
         Prospectus or amendment or supplement thereto had been provided to such
         indemnified  party and was not sent or given by such indemnified  party
         at or prior to the time such action was  required  of such  indemnified
         party by the 1933 Act and if delivery of such  Prospectus  or amendment
         or  supplement  thereto  would have  eliminated  (or been a  sufficient
         defense to) any  liability  of such  indemnified  party with respect to
         such  statement  or omission.  Indemnity  under this Section 6(a) shall
         remain in full force and effect regardless of any investigation made by
         or on behalf of any indemnified party and shall survive the transfer of
         the Registrable Securities and Additional Registrable Securities.

                  (b)  Indemnification  by  Purchaser.  In  connection  with any
         registration  pursuant to the terms of this  Agreement,  the  Purchaser
         will furnish to the Company in writing such  information as required by
         the 1933  Act  concerning  the  Purchaser  or the  proposed  manner  of
         distribution for use in connection with any  Registration  Statement or
         Prospectus  and agrees to indemnify and hold  harmless,  to the fullest
         extent permitted by law, the Company, its directors, officers, and each
         person who  controls  the Company  (within the meaning of the 1933 Act)
         against any losses, claims, damages, liabilities and expense (including
         reasonable  attorney's  fees) resulting from any untrue  statement of a
         material  fact or any omission of a material fact required to be stated
         in the Registration  Statement or Prospectus or preliminary  prospectus
         or amendment or supplement  thereto or necessary to make the statements
         therein not misleading, to the extent, but only to the extent that such
         untrue statement or omission is contained in any information  furnished
         in writing by such Purchaser to the Company  specifically for inclusion
         in such Registration Statement or Prospectus or amendment or supplement
         thereto and that such information was substantially  relied upon by the
         Company in preparation of the  Registration  Statement or Prospectus or
         any amendment or supplement thereto. In no event shall the liability of

<PAGE>

         the  Purchaser  be  greater  in amount  than the  dollar  amount of the
         proceeds (net of the cost of the Registrable  Securities and Additional
         Registrable  Securities sold and all expenses paid by the Purchaser and
         not  reimbursed  by the  Company  and the  amount  of any  damages  the
         Purchaser has  otherwise  been required to pay by reason of such untrue
         statement or omission)  received by the Purchaser  upon the sale of the
         Registrable Securities or Additional Registrable Securities included in
         the  Registration   Statement  giving  rise  to  such   indemnification
         obligation.
                  (c)  Conduct  of  Indemnification   Proceedings.   Any  person
         entitled to  indemnification  hereunder shall (i) give prompt notice to
         the  indemnifying  party of any claim  with  respect  to which it seeks
         indemnification,  (ii)  permit  such  indemnifying  party to assume the
         defense of such  claim  with  counsel  reasonably  satisfactory  to the
         indemnified  party,  and  (iii) by notice  to the  indemnifying  party,
         require the indemnifying party to assume the defense of such claim with
         counsel  reasonably  satisfactory to the indemnified  party;  provided,
         however,  that any person entitled to  indemnification  hereunder shall
         have the right to employ  separate  counsel and to  participate  in the
         defense of such claim,  but the fees and expenses of such counsel shall
         be at the expense of such person unless (a) the indemnifying  party has
         agreed  to pay such fees or  expenses,  or (b) the  indemnifying  party
         shall  have  failed to assume  the  defense  of such  claim and  employ
         counsel  reasonably   satisfactory  to  such  person,  or  (c)  in  the
         reasonable  judgment of any such person,  based upon written  advice of
         its counsel,  a conflict of interest exists between such person and the
         indemnifying  party with respect to such claims (in which case,  if the
         person  notifies  the  indemnifying  party in writing  that such person
         elects to employ  separate  counsel at the expense of the  indemnifying
         party,  the  indemnifying  party shall not have the right to assume the
         defense of such claim on behalf of such person); and provided, however,
         further,  that the failure of any  indemnified  party to give notice as
         provided  herein  shall  not  relieve  the  indemnifying  party  of its
         obligations  hereunder,  except to the extent that such failure to give
         notice shall materially  adversely affect the indemnifying party in the
         defense  of any such claim or  litigation.  It is  understood  that the
         indemnifying  party shall not, in connection with any proceeding in the
         same  jurisdiction,  be liable  for fees or  expenses  of more than one
         separate  firm  of  attorneys  at any  time  for all  such  indemnified
         parties.  No indemnifying  party will,  except with the consent of each
         indemnified  party,  consent to entry of any judgment or enter into any
         settlement that does not include as an  unconditional  term thereof the
         giving by the  claimant or  plaintiff  to such  indemnified  party of a
         release from all liability in respect of such claim or litigation.
                  (d)  Contribution.  If  for  any  reason  the  indemnification
         provided for in the preceding  paragraphs (a) and (b) is unavailable to
         an indemnified party or insufficient to hold it harmless, other than as
         expressly   specified  therein,   then  the  indemnifying  party  shall
         contribute to the amount paid or payable by the indemnified  party as a
         result of such loss,  claim,  damage or liability in such proportion as
         is appropriate to reflect the relative fault of the  indemnified  party
         and the  indemnifying  party,  as well as any other relevant  equitable
         considerations. No person guilty of fraudulent misrepresentation within
         the  meaning  of  Section  11(f) of the 1933 Act shall be  entitled  to
         contribution   from  any   person   not   guilty  of  such   fraudulent
         misrepresentation.  In no event shall the contribution  obligation of a
         holder of Registrable  Securities or Additional  Registrable Securities
         be greater in amount than the dollar amount of the proceeds (net of the
         cost of the Registrable Securities or Additional Registrable Securities

<PAGE>

         sold and all  expenses  paid by such holder and not  reimbursed  by the
         Company and the amount of any damages  such holder has  otherwise  been
         required to pay by reason of such untrue or alleged untrue statement or
         omission  or  alleged  omission)  received  by it upon  the sale of the
         Registrable Securities or Additional Registrable Securities giving rise
         to such contribution obligation.
                  7. Miscellaneous.
                  (a) Amendments and Waivers. This Agreement may be amended only
         by a writing signed by the Company and the  Purchaser.  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 shall have obtained
         the  written  consent of the  Purchaser  to such  amendment,  action or
         omission to act.
                  (b) Notices. All notices and other communications provided for
         or permitted hereunder shall be made as set forth in Section 9.4 of the
         Purchase Agreement.
                  (c) Assignments and Transfers by Purchaser. This Agreement and
         the rights and  obligations of the Purchaser  hereunder may be assigned
         or  transferred in whole to any transferee or assignee of the Note, the
         Warrant,  the  Registrable  Securities  or the  Additional  Registrable
         Securities  or in part to any  transferee  or  assignee  of any portion
         thereof,  except as otherwise set forth herein.  The Purchaser may make
         such  assignment or transfer to any transferee or assignee of the Note,
         the Warrant, the Registrable  Securities or the Additional  Registrable
         Securities;  provided, that (i) such transfer is made expressly subject
         to this Agreement and the  transferee  agrees in writing to be bound by
         the terms and conditions  hereof, and (ii) the Company is provided with
         written notice of such assignment.
                  (d) Assignments  and Transfers by the Company.  This Agreement
         may not be assigned by the Company without the prior written consent of
         the  Purchaser  but,  in any case of any  successor-in-interest  to the
         Company  or any  Person  other  than the  Company  who is an  issuer of
         Registrable  Securities  or  Additional  Registrable  Securities,  such
         successor-in-interest   or  other  issuer  shall  assume,  jointly  and
         severally  with the  Company,  the  rights  and  duties of the  Company
         hereunder,  in the event of a merger or  consolidation  of the  Company
         with or into another  corporation  or the sale of all or  substantially
         all of the  Company's  assets (and it shall be a condition  to any such
         merger,  consolidation or sale that such successor-in-interest or other
         issuer  assume  in  writing  all  obligations   hereunder  jointly  and
         severally with the Company).
                  (e) Benefits of the  Agreement.  The terms and  conditions  of
         this  Agreement  shall inure to the benefit of and be binding  upon the
         respective permitted 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  permitted
         successors   and  assigns  any  rights,   remedies,   obligations,   or
         liabilities  under or by reason of this Agreement,  except as expressly
         provided in this Agreement.
                  (f)  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.
                  (g) Titles and  Subtitles.  The titles and  subtitles  used in
         this  Agreement  are  used  for  convenience  only  and  are  not to be
         considered in construing or interpreting this Agreement.

<PAGE>

                  (h) 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 this Agreement shall
         be  interpreted  as if such  provision  were so  excluded  and shall be
         enforceable  in  accordance  with  its  terms  to  the  fullest  extent
         permitted by law.
                  (i) Further Assurances.  The parties shall execute and deliver
         all such  further  instruments  and  documents  and take all such other
         actions as may  reasonably  be required  to carry out the  transactions
         contemplated  hereby and to evidence the  fulfillment of the agreements
         herein contained.
                  (j)  Entire  Agreement.  This  Agreement,  together  with  the
         Purchase Agreement, the Note and the Warrant and documents contemplated
         thereby,  is  intended by the  parties as a final  expression  of their
         agreement and intended to be a complete and exclusive  statement of the
         agreement  and  understanding  of the parties  hereto in respect of the
         subject matter  contained  herein.  This  Agreement,  together with the
         Purchase Agreement, the Note and the Warrant and documents contemplated
         thereby, supersedes all prior agreements and understandings between the
         parties with respect to such subject matter.
                  (K) APPLICABLE  LAW;  JURISDICTION.  This  Agreement  shall be
         governed by, and construed in accordance with, the laws of the State of
         Nevada  without  regard to  principles of conflicts of law. The parties
         hereby  agree  that all  actions or  proceedings  arising  directly  or
         indirectly from or in connection with this Agreement shall be litigated
         only in the United States  District Court for the Northern  District of
         Texas located in Dallas County,  Dallas, Texas. The parties consent and
         submit to the jurisdiction and venue of the foregoing court and consent
         that any process or notice of motion or other application to said court
         or a judge  thereof may be served  inside or outside the State of Texas
         or the  Northern  District  of Texas  (but  with  respect  to any party
         hereto,  such  consent  shall  not  be  deemed  a  general  consent  to
         jurisdiction  and service for any third  parties) by  registered  mail,
         return  receipt  requested,  directed to the party being  served at its
         address provided in or pursuant to the Purchase  Agreement (and service
         so made shall be deemed complete three (3) days after the same has been
         posted as aforesaid) or by personal  service or in such other manner as
         may be  permissible  under the rules of said court.  The Company hereby
         waives  any right to a jury  trial in  connection  with any  litigation
         pursuant to this Agreement.

                            [Signature Page Follows]

<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Registration Rights
Agreement as of the date first written above.

                              THE COMPANY:

                              KNIGHTSBRIDGE FINE WINES, INC.

                              By:  /s/ Joel Shapiro
                                   ---------------------------------------
                              Name:   Joel Shapiro
                              Title:  President & CEO

                              THE PURCHASER:

                              GRYPHON MASTER FUND, L.P.

                              By: Gryphon Partners, L.P., its General Partner

                               By:  Gryphon Management Partners, L.P.,
                                              its General Partner

                               By:  Gryphon Advisors, LLC,
                                             its General Partner

                               By:  /s/ Warren Garden
                                    --------------------------------------
                                        Warren W. Garden, Authorized Agent

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