Document:

Exhibit 4.5

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                                WARRANT AGREEMENT
                                -----------------

                           DATED AS OF MARCH 15, 2001

                                 BY AND BETWEEN

                           IMMTECH INTERNATIONAL, INC.

                                       AND

                               THE KRIEGSMAN GROUP

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<PAGE>

                                                                  EXECUTION COPY

                                WARRANT AGREEMENT

            WARRANT AGREEMENT dated as of March 15, 2001, by and between IMMTECH
INTERNATIONAL, INC., a Delaware corporation (the "Company"), and THE KRIEGSMAN
GROUP, a sole proprietorship ("Kriegsman").

            WHEREAS, pursuant to that certain letter agreement dated March 15,
2001 (the "Engagement Agreement"), between the Company and Kriegsman, the
Company retained Kriegsman to provide financial consulting, planning,
structuring, business strategy and public relations and promotion services to
the Company for an expected term of twelve (12) months.

            WHEREAS, pursuant to the Engagement Agreement, the Company proposes
to issue to Kriegsman a warrant (the "Warrant") to purchase, in the aggregate,
250,000 shares of the Company's common stock, par value $.01 per share (the
"Common Stock"), subject to certain vesting and other provisions more
specifically set forth herein.

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto hereby agree as follows:

            SECTION 1. FORM OF WARRANT. (a) The text of the certificate
evidencing the Warrant (the "Warrant Certificate"), together with the Form of
Election to Exercise and the Form of Assignment attached there to as Attachments
A and B, respectively, shall be substantially as set forth in Exhibit A attached
hereto. Until 5:00 p.m., New York time, on March 15, 2006 (the "Expiration
Date"), the Warrant shall entitle the registered holder thereof to purchase from
time to time up to an aggregate of 250,000 shares of Common Stock, subject to
adjustment as provided in this Warrant Agreement (the "Warrant Shares"), at a
purchase price of $10.75 per share, subject to adjustment as provided in this
Warrant Agreement (the "Warrant Price"), and subject to the vesting provisions
set forth below, during the period from the date of this Warrant Agreement until
the Expiration Date. The Warrant Certificate shall be dated as of the date of
this Warrant Agreement, both upon initial issuance and upon any subsequent
assignment, if any, of the Warrant.

            (b) The Warrant Shares shall vest according to the following
schedule:

                (1) 100,000 Warrant Shares shall vest as of the date of this
        Warrant Agreement.

                (2) 50,000 Warrant Shares shall vest upon the market
        capitalization of the Company's Common Stock, based upon 5,955,000
        shares outstanding, equaling at least $100,000,000 for a minimum of five
        (5) consecutive trading days.

                (3) 50,000 Warrant Shares shall vest upon the market
        capitalization of the Company's Common Stock, based upon 5,955,000
        shares outstanding, equaling at least $125,000,000 for a minimum of five
        (5) consecutive trading days.

                (4) 50,000 Warrant Shares shall vest upon the market
        capitalization of the Company's Common Stock, based upon 5,955,000
        shares outstanding, equaling at least $150,000,000 for a minimum of five
        (5) consecutive trading days.

                (5) Upon any termination of the Engagement Agreement in
        accordance with its terms, any unvested Warrant Shares shall be
        forfeited and shall no longer be eligible for vesting.

                (6) If, by September 14, 2001, Kriegsman arranges for either (i)
        a private placement or secondary offering of the Company's securities,
        or (ii) a sale or merger of the Company, then at the closing of such
        transaction, any unvested Warrant Shares shall vest.

                (7) If Kriegsman arranges for a strategic alliance, joint
        venture or a license agreement, or a sale or merger of the Company or
        any of its product lines, in either case with a party introduced to the
        Company by Kriegsman, then at the closing of such transaction, any
        unvested Warrant Shares shall vest.

            SECTION 2. REGISTRATION. The Company shall maintain records for the
registration of the Warrant and for the registration of any transfer, if any, of
the Warrant. Upon the execution and delivery of this Warrant Agreement by
Kriegsman, the Company shall issue to Kriegsman a Warrant Certificate to
purchase 250,000 shares of Common Stock and register the Warrant in Kriegsman's
name on the Company's records.

            SECTION 3. TRANSFER AND EXCHANGES. The Company shall register the
transfer, if any, from time to time, of the outstanding Warrant to transferees
or assignees of Kriegsman, upon the records to be maintained by the Company for
that purpose pursuant to Section 2 of this Warrant Agreement, upon surrender of
the related Warrant Certificate properly endorsed for transfer and accompanied
by a properly completed Form of Assignment in the form attached to the Warrant
Certificate as Attachment B. Upon each such transfer, a new Warrant Certificate
shall be issued to the transferee and the surrendered Warrant Certificate shall
be cancelled by the Company. As a condition to effecting any such transfer, the
Company may require the transferee to confirm in writing the agreement of the
transferee to be bound by the transfer restrictions set forth in this Section 3
and all other obligations of the Warrant holder set forth in this Warrant
Agreement.

            SECTION 4. EXERCISE OF THE WARRANT. (a) Subject to the provisions of
this Warrant Agreement, the registered holder of the Warrant shall have the
right to purchase from the Company (and the Company shall issue and sell to each
such registered holder) prior to the Expiration Date duly authorized, validly
issued, fully paid and nonassessable shares of Common Stock, free of all
preemptive rights of any shareholder and free of all taxes, liens or charges
with respect to the issuance thereof, except that the holder of the Warrant
shall pay any such tax due because any shares are issued in a name other than
such holder, upon surrender to the Company at its office in Vernon Hills,
Illinois, of the related Warrant Certificate, with the form of election to
exercise annexed thereto duly completed and executed, and upon payment to the
Company of the applicable Warrant Price for each share being purchased. Payment
of the Warrant Price shall be made by certified bank check or by wire transfer
of immediately available funds to an account designated by the Company in
writing upon request by the registered holder of the Warrant. The Warrant may be
exercised only for full shares of Common Stock and only in amounts greater than
5,000 Warrant Shares, such number to be subject to adjustment in the manner set
forth in Section 5 hereof.

            (b) In addition to the foregoing method of payment in respect of the
exercise of the Warrant set forth in the preceding subsection (a), the aggregate
Warrant Price may also be paid, at the sole option of the registered holder of
the Warrant, by either of the following methods:

                (1) by delivery to the Company (or its designated agent) of an
        executed irrevocable Warrant exercise form together with irrevocable
        instructions to a broker-dealer or underwriter in form and substance
        satisfactory to the Company to sell a sufficient portion of the shares
        of Common Stock underlying the Warrant and deliver the sale proceeds
        directly to the Company in payment of the aggregate Warrant Price; or

                (2) by electing a "cashless" exercise in lieu of any cash
        payment to the Company, by electing to receive such number of Warrant
        Shares as determined below:

                              A  =  (M - P) x N
                                    ------------
                                       M

                        where:

                              A  =  the number of Warrant Shares to be
                                    received by the registered holder upon the
                                    "cashless" exercise.

                              M  =  the fair market value of a share of Common
                                    Stock on the date of exercise (which is the
                                    date on which the Warrant Certificate and
                                    attached Form of Election to Exercise are
                                    delivered to the Company, as set forth in
                                    subsection (a) above). If the Common Stock
                                    is regularly quoted on a recognized U.S.
                                    securities market, then the fair market
                                    value of a share of Common Stock shall be
                                    the closing price of the Common Stock on the
                                    date of exercise; provided, however, that if
                                    no closing price is available, then the
                                    average of the high bid and the low asked
                                    price on that day will be used as its fair
                                    market value. In the absence of an
                                    established U.S. securities market, the fair
                                    market value shall be determined in good
                                    faith by the Company's Board of Directors.

                              P  =  the Warrant Price.

                              N  =  the number of Warrant Shares submitted for
                                    exercise, with the maximum number being the
                                    number of Warrant Shares for which the
                                    Warrant is then exercisable.

            (c) Subject to Section 6 of this Warrant Agreement, upon such
surrender of the Warrant for exercise (accompanied by payment of the Warrant
Price upon exercise), the Company shall issue and deliver with all reasonable
dispatch, and in any event not later than ten (10) business days, to or upon the
written order of the registered holder of such Warrant and in such name or names
as such registered holder may designate, a certificate for the number of full
shares of Common Stock so purchased upon the exercise of such Warrant. Such
certificate shall be deemed to have been issued and any person so designated to
be named therein shall be deemed to have become a holder of record of such
shares as of the date of the due surrender of such Warrant.

            SECTION 5. ADJUSTMENT TO EXERCISE PRICE AND NUMBER OF SHARES OF
COMMON STOCK. (a) The Warrant Price and the number of Warrant Shares underlying
the Warrant shall be subject to adjustment from time to time as hereinafter set
forth:

                (1) STOCK DIVIDENDS - SPLIT-UPS. If after the date hereof, the
        number of outstanding shares of Common Stock is increased by a stock
        dividend payable in shares of Common Stock or by a sub-division or a
        split-up of shares of Common Stock or other similar event, then, on the
        effective date thereof, the number of shares of Common Stock issuable
        upon exercise of the Warrant shall be increased in proportion to such
        increase in outstanding shares.

                (2) AGGREGATION OF SHARES. If after the date hereof, the number
        of outstanding shares of Common Stock is decreased by a consolidation,
        combination or reclassification of shares of Common Stock or other
        similar event, then, on the effective date thereof, the number of shares
        of Common Stock issuable upon exercise of the Warrant shall be decreased
        in proportion to such decrease in outstanding shares.

                (3) ADJUSTMENTS IN WARRANT PRICE. Whenever the number of the
        shares of Common Stock issuable upon the exercise of this Warrant is
        adjusted, as provided in this Section 5(a), then the Warrant Price shall
        be adjusted (to the nearest cent) by multiplying the Warrant Price in
        effect immediately prior to such adjustment of the number of shares by a
        fraction (i) the numerator of which shall be the number of the shares of
        Common Stock purchasable upon the exercise of this Warrant immediately
        prior to such adjustment, and (ii) the denominator of which shall be the
        number of the shares of Common Stock so purchasable immediately
        thereafter.

                (4) OTHER DIVIDENDS AND DISTRIBUTIONS. If after the date hereof,
        the Company pays a dividend or makes another distribution to the holders
        of shares of Common Stock payable in property other than cash or shares
        of Common Stock, then in each such event the number of shares of Common
        Stock the registered holder of this Warrant shall receive, upon exercise
        hereof, will be adjusted to the number of shares of Common Stock equal
        to the number that results from multiplying the number of shares of
        Common Stock purchasable upon exercise of this Warrant immediately prior
        to such adjustment by a fraction (i) the numerator of which is the fair
        market value of a share of Common Stock (as determined in good faith by
        the Board of Directors of the Company) on the record date for such
        distribution, and (ii) the denominator of which is the fair market value
        per share of Common Stock less the value (as determined in good faith by
        the Board of Directors of the Company) of the property so distributed on
        account of one share of Common Stock. Such adjustment will be made
        whenever any such distribution is made and will become effective
        immediately after the record date for the determination of stockholders
        entitled to receive such distribution.

                (5) REORGANIZATIONS, ETC. If after the date hereof, any capital
        reorganization or reclassification of the Common Stock of the Company
        (other than covered by Sections 5(a)(1) and 5(a)(2) above), or
        consolidation or merger of the Company with another corporation, or the
        sale of all or substantially all of its assets to another corporation or
        other similar event shall be effected, then, as a condition of such
        reorganization, reclassification, consolidation, merger, or sale,
        lawful, fair and adequate provision shall be made whereby the registered
        holder of the Warrant shall thereafter have the right to purchase and
        receive, upon the basis and upon the terms and conditions specified in
        the Warrant and in lieu of the shares of Common Stock of the Company
        immediately theretofore purchasable and receivable upon the exercise of
        the rights represented thereby, such shares of stock, securities, or
        assets as may be issuable or payable with respect to or in exchange for
        the number of shares of Common Stock of the Company equal to the number
        of shares of Common Stock of the Company immediately theretofore
        purchasable and receivable upon the exercise of the rights represented
        by the Warrant, had such reorganization, reclassification,
        consolidation, merger, or sale not taken place and in such event,
        adequate and appropriate provision shall be made with respect to the
        rights and interests of Kriegsman to the end that the provisions hereof
        (including, without limitation, provisions for adjustments of the
        Warrant Price and of the number of shares of Common Stock purchasable
        upon the exercise of the Warrant) shall thereafter be applicable, as
        nearly as may be, to any share of stock, securities, or assets
        thereafter deliverable upon the exercise hereof.

            (b) SUPPLEMENTAL WARRANT. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding shares of Common Stock),
the corporation formed by such consolidation or merger shall execute and deliver
to Kriegsman a supplemental warrant providing that the holder of each Warrant
then outstanding shall have the right thereafter (until the Expiration Date) to
receive, upon exercise of such supplemental warrant, the kind and amount of
shares of stock and other securities and property receivable upon such
consolidation or merger by a holder of the number of shares of Common Stock of
the Company for which such Warrant then outstanding might have been exercised
immediately prior to such consolidation, merger, sale or transfer. Such
supplemental Warrant shall provide for adjustments which shall be identical to
the adjustments provided in this Section 5. The above provision of this Section
shall similarly apply to successive consolidations or mergers.

            SECTION 6. PAYMENT OF TAXES. The Company will pay any documentary
stamp taxes attributable to the initial issuance of shares of Common Stock
issuable upon the exercise of the Warrant; provided, however, that the Company
shall not be required to pay any tax or taxes which may be payable in respect of
any registration of transfer involved in the issue or delivery of any
certificates for shares of Common Stock in a name other than that of the
registered holder of the Warrant in respect of which such shares are issued, and
in such case the Company shall not be required to issue or deliver any
certificate for shares of Common Stock or any Warrant until the person
requesting the same has paid to the Company the amount of such tax or has
established to the Company's satisfaction that such tax has been paid.

            SECTION 7. MUTILATED OR MISSING WARRANT CERTIFICATE. In case the
Warrant Certificate shall be mutilated, lost, stolen or destroyed, the Company
shall issue and deliver in exchange and substitution for and upon cancellation
of the mutilated Warrant Certificate, or in lieu of the substitution for the
Warrant Certificate lost, stolen or destroyed, a new Warrant Certificate
evidencing the right to purchase a like number of shares of Common Stock, but
only upon receipt of evidence satisfactory to the Company of such loss, theft or
destruction of such Warrant Certificate and indemnity, if requested, also
satisfactory in form and substance to the Company. Applicants for such
substitute Warrant Certificate shall also comply with such other reasonable
regulations and pay such other reasonable charges (including, without
limitation, attorneys fees and expenses) as the Company may prescribe.

            SECTION 8. RESERVATION OF COMMON STOCK. The Company shall at all
times prior to the Expiration Date keep reserved, out of the authorized and
unissued shares of Common Stock, a number of shares sufficient to provide for
the exercise of the Warrant. The Company agrees that all shares of Common Stock
issued upon exercise of the Warrant shall be, at the time of delivery of the
certificates for such shares, duly authorized, validly issued and outstanding,
fully paid and nonassessable, free from preemptive rights of any shareholder and
free of all taxes, liens and charges with respect to the issue thereof, except
that holder of the Warrant shall pay any such tax due because any shares are
issued in a name other than such holder. A Warrant Certificate surrendered in
the exercise of the Warrant shall be cancelled by the Company and such cancelled
Warrant Certificate shall constitute sufficient evidence of the number of shares
of the Company's Common Stock which have been issued upon the exercise of the
Warrant evidenced thereby.

            SECTION 9. DEMAND REGISTRATION. (a) Kriegsman may, upon written
notice to the Company at any time following the date of this Warrant Agreement
until the Expiration Date, make one request that the Company file with the
Securities and Exchange Commission, within sixty (60) days of the delivery of
such notice to the Company, a registration statement (a "Demand Registration")
on a form satisfactory to the Company to register under the Securities Act of
1933, as amended (the "Securities Act"), the Warrant Shares issued or issuable
(whether or not yet vested) by way of exercise of the Warrant ("Registrable
Securities"). Notwithstanding the foregoing, Registrable Securities shall not
include any securities that may be sold by a person to the public pursuant to
Rule 144(k) under the Securities Act during any ninety (90) day period.

            (b)  If the Demand Registration is part of or combined with an
underwritten primary registration on behalf of the Company, and the managing
underwriters advise the Company that in their opinion the number of securities
requested to be included in such registration exceeds the number which can be
sold in an orderly manner in such offering within a price range reasonably
acceptable to the Company, then the Company will include in such registration
(1) first,  the securities the Company proposes to sell, (2) second, the
Registrable Securities requested to be included therein and any other securities
requested to be included therein by other holders entitled to request inclusion
of their securities in such registration, pro rata among the holders of such
Registrable Securities and other securities on the basis of the number of
Registrable Securities requested to be included therein and any other securities
requested to be included therein by other holders entitled to request
inclusion of their  securities  in such registration, and (3) third, other
securities requested to be included in such registration.

            (c) If the Demand Registration is part of or combined with an
underwritten secondary registration on behalf of holders of the Company's Common
Stock, and the managing underwriters advise the Company that in their opinion
the number of securities requested to be included in such registration exceeds
the number which can be sold in an orderly manner in such offering within a
price range reasonably acceptable to the holders initially requesting such
registration, then the Company will include in such registration (1) first, the
securities requested to be included therein by the holders requesting such
registration, and (2) the Registrable Securities and any other securities
requested to be included in such registration by other holders entitled to
request inclusion of their securities in such registration, pro rata among the
holders of such securities on the basis of the number of Registrable Securities
requested to be included therein and any other securities requested to be
included therein by other holders entitled to request inclusion of their
securities in such registration.

            (d) If the number of shares of Registrable Securities actually
registered pursuant to the Demand Registration is reduced pursuant to either of
subsections (b) or (c) above from the number of shares originally requested to
be registered pursuant to subsection (a) above, then Kriegsman shall be
permitted, at any time after the date which is ten (10) days after the effective
date of the registration statement filed by the Company pursuant to or in
connection with the Demand Registration, to make another Demand Registration in
accordance with subsection (a) above for such number of shares of Registrable
Securities as was originally requested in the prior Demand Registration but
which were not actually registered; provided, however, that notwithstanding
subsection (a) above, the Company shall file such other registration statement
within twenty (20) days of the delivery to the Company of the notice by
Kriegsman requesting such other Demand Registration.

            SECTION 10. REGISTRATION PROCEDURES. Whenever the holders of
Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Warrant Agreement, the Company will use its
reasonable good faith efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition
thereof, and pursuant thereto the Company will:

            (a) prepare and file with the Securities and Exchange Commission a
registration statement with respect to such Registrable Securities and use its
good faith commercially reasonable efforts to cause such registration statement
to become effective; provided, however, that before filing a registration
statement or prospectus or any amendments or supplements thereto, the Company
will furnish to the holders of the Registrable Securities covered by such
registration statement copies of all such documents proposed to be filed;

            (b) prepare and file with the Securities and Exchange Commission
such amendments and supplements to such registration statement and the
prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than five (5) years
from the date of this Warrant Agreement, and comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities
covered by such registration statement during such period in accordance with the
intended methods of disposition by the sellers set forth in such registration
statement;

            (c) furnish to each seller of Registrable Securities such number of
copies of such registration statement, each amendment and supplement thereto,
and the prospectus included in such registration statement (including each
preliminary prospectus) as may be reasonably requested by such seller in order
to facilitate the disposition of the Registrable Securities owned by such
seller;

            (d) use its good faith commercially reasonable efforts to register
or qualify such Registrable Securities under such other securities or blue sky
laws of such jurisdictions as any seller reasonably requests and do any and all
other acts and things which may be reasonably necessary or advisable in order to
enable such seller to consummate the disposition in such jurisdictions of the
Registrable Securities owned by such seller; provided, however, that the number
of shares of Registrable Securities to be so registered or qualified in any such
jurisdiction shall not be less than 25,000 shares, and the Company will not be
required to (i) qualify generally to do business in any jurisdiction where it
would not otherwise be required to qualify, (ii) subject itself to taxation in
any such jurisdiction, or (iii) consent to general service of process in any
such jurisdiction);

            (e) promptly notify each seller of such Registrable Securities, at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act, of the happening of any event as a result of which the
prospectus included in such registration statement contains an untrue statement
of a material fact or omits any fact necessary to make the statements therein
not misleading, and, at the request of any such seller, the Company will prepare
a supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus will not contain
an untrue statement of a material fact or omit to state any fact necessary to
make the statements therein not misleading;

            (f) use its good faith commercially reasonable efforts to cause all
such Registrable Securities to be listed on each securities exchange or on the
NASDAQ Stock Market on which shares of Common Stock issued by the Company are
then listed;

            (g) provide a transfer agent and registrar for all such Registrable
Securities not later than the effective date of such registration statement;

            (h) subject to obtaining a confidentiality agreement in form and
substance reasonably acceptable to the Company, make available for inspection by
any seller of Registrable Securities, any underwriter participating in any
disposition pursuant to such registration statement and any attorney, accountant
or other agent retained by such seller or underwriter, all financial and other
pertinent records, pertinent corporate documents and properties of the Company,
and cause the Company's officers, directors, employees, independent accountants
and attorneys to supply all pertinent information reasonably requested by any
such seller, underwriter, attorney, accountant or agent in connection with such
registration statement; and

            (i) in the event of the issuance of any stop order suspending the
effectiveness of a registration statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Common Stock included in such registration statement for sale in any
jurisdiction, the Company will use its reasonable good faith efforts promptly to
obtain the withdrawal of such order.

            SECTION 11. REGISTRATION EXPENSES. All expenses incurred by the
Company incident to the Company's performance of or compliance with this Warrant
Agreement, including all registration and filing fees, fees and expenses of
compliance with securities or blue sky laws, printing expenses, messenger and
delivery expenses, and fees and disbursements of counsel for the Company and its
independent certified public accountants, underwriters (excluding discounts and
commissions) and other persons retained by the Company will be paid by the
Company.

            SECTION 12. FRACTIONAL INTERESTS. The Company shall not be required
to issue fractions of shares of Common Stock on the exercise of the Warrant and
the Company will pay the cash value of any fractions otherwise issuable.

            SECTION 13. NOTICES TO WARRANTHOLDERS. (a) Right to Receive Notice.
Nothing herein shall be construed as conferring upon Kriegsman, as a holder of
the Warrant, the right to vote or consent or to receive notice as a stockholder
for the election of directors or any other matter, or as having any rights
whatsoever as a stockholder of the Company. If, however, at any time prior to
the expiration of the Warrant or its exercise in full, any of the events
described in Section 13(b) below shall occur, then, in the event of one or more
of said events, the Company shall give written notice of such event at least
five (5) business days prior to the date fixed as a record date or the date of
closing the transfer books for the determination of the stockholders entitled to
such dividend, distribution, conversion or exchange of securities or
subscription rights, or entitled to vote on such proposed dissolution,
liquidation, winding up or sale. Such notice shall specify such record date or
the date of the closing of the transfer books, as the case may be.

            (b) Events Requiring Notice. The Company shall be required to give
the notice described in this Section 13 upon one or more of the following
events: (i) the Company shall take a record of the holders of its shares of
Common Stock for the purpose of entitling them to receive a dividend or
distribution payable otherwise than in cash, or a cash dividend or distribution
payable otherwise than out of retained earnings, as indicated by the accounting
treatment of such dividend or distribution on the books of the Company, or (ii)
the Company shall offer to all the holders of its Common Stock any additional
shares of capital stock of the Company or securities convertible into or
exchangeable for shares of capital stock of the Company, or any option, right or
warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up
of the Company shall be proposed, or (iv) a sale of all or substantially all of
its property, assets and business shall be proposed.

            (c) Notice of Change in Warrant Price. The Company shall, promptly
after an event requiring a change in the Warrant Price pursuant to Section 5
hereof, send notice to Kriegsman of such event and change (the "Price Change
Notice"). The Price Change Notice shall describe the event causing the change
and the method of calculating same in reasonable detail.

            (d) Transmittal of Notices. Unless otherwise provided herein, any
notice, request, instruction or other document to be given hereunder by any
party to the other parties shall be in writing and shall be deemed effectively
given (1) when delivered personally, (2) when sent by confirmed facsimile if
sent during normal business hours of the recipient or, if not, then on the next
business day, (3) five (5) days after having been sent by registered or
certified mail, return receipt requested, postage prepaid, or (4) one (1)
business day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt, in each
case, addressed as follows:

            (i)   If to Kriegsman, to the following address (or as subsequently
                  updated by notice to the Company):

                        The Kriegsman Group
                        11726 San Vicente Boulevard
                        Suite 650
                        Los Angeles, California  90049
                        Telephone:  (310) 826-5449
                        Facsimile:  (310) 826-5529
                        Attention:  Mr. Steven A. Kriegsman
                                    President

                  With a copy to:

                        Troy & Gould, P.C.
                        1801 Century Park East
                        Suite 1600
                        Los Angeles, California  90067
                        Telephone:  (310) 553-4441
                        Facsimile:  (310) 201-4746
                        Attention:  Sanford J. Hillsberg, Esq.

            (ii)  If to the Company, to the following address (or such other
                  address as the Company may designate by notice to the Holder):

                        Immtech International, Inc.
                        150 Fairway Drive, Suite 150
                        Vernon Hills, Illinois  60061
                        Telephone:  (847) 573-0033
                        Facsimile:  (847) 573-8288
                        Attention:  T. Stephen Thompson
                                    President and Chief Executive Officer

                  With a copy to:

                        Cadwalader, Wickersham & Taft
                        100 Maiden Lane
                        New York, New York  10038-4892
                        Telephone:  (212) 504-6000
                        Facsimile:  (212) 504-6666
                        Attention:  John F. Fritts, Esq.

            SECTION 14. SUCCESSORS. All the covenants and provisions of this
Warrant Agreement by or for the benefit of the Company or Kriegsman shall bind
and inure to the benefit of their respective successors and assigns hereunder.

            SECTION 15. INDEMNIFICATION. (a) The Company and its successors and
assigns shall indemnify Kriegsman and any other registered holder of the
Registrable Securities, and their respective officers, directors and
stockholders with respect to the Registrable Securities to be sold pursuant to
any registration statement or prospectus hereunder and each person, if any, who
controls Kriegsman (or such other registered holder of the Registrable
Securities) within the meaning of Section 15 of the Securities Act or Section
20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
against all loss, claim, damage, expense or liability (including all reasonable
attorneys' fees and other expenses reasonably incurred in investigating,
preparing or defending against any claim) (any and all of the foregoing, a
"Claim") to which any of them may become subject under the Securities Act, the
Exchange Act or otherwise, arising from such registration statement or
prospectus; provided, however, that such indemnification obligation shall not
apply to any Claim arising from information furnished to the Company (or its
officers, directors or representatives) by or on behalf of Kriegsman or any
other registered holder of the Registrable Securities, or their respective
officers, directors or stockholders, or any other person, if any, who controls
Kriegsman or such other registered holder within the meaning set forth above.

            (b)  Kriegsman, its successors and assigns, and each holder of
Registrable Securities (on a severally and not jointly basis), shall indemnify
the Company, its officers and directors and each person, if any, who controls
the Company within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act, against all Claims (including all reasonable
attorneys' fees and other expenses  reasonably incurred in investigating,
preparing or defending against any Claim) to which they may become subject under
the Securities Act, the Exchange Act or otherwise, arising from  information
 furnished to the Company (or its officers, directors, or representatives) by
or on behalf of such respective holders, or their successors or assigns.

            SECTION 16. DELAWARE CONTRACT. This Warrant Agreement and each
Warrant issued hereunder shall be deemed to be a contract made under the laws of
the State of Delaware and for all purposes shall be construed in accordance with
the internal laws of said state.

            SECTION 17. BENEFITS OF THIS WARRANT AGREEMENT. Nothing in this
Warrant Agreement shall be construed to give to any person or corporation other
than the Company, Kriegsman and each other registered holder of the Warrants or
the Registrable Securities any legal or equitable right, remedy or claim under
this Warrant Agreement; but this Warrant Agreement shall be for the sole and
exclusive benefit of the Company, Kriegsman and each other registered holder of
the Warrants or the Registrable Securities.

            SECTION 18. HEADINGS. The headings contained herein are for
convenience purposes only, and shall not alter, modify or limit, or be used in
construing or interpreting, any of the provisions hereof.

            SECTION 19. COUNTERPARTS. This Warrant Agreement may be executed in
any number of counterparts, each of which shall be considered an original, but
all of which together shall constitute one and the same document. Counterparts
may be delivered by facsimile; provided, however, that the Company and Kriegsman
shall each promptly deliver to each other original executed counterparts by
overnight delivery service.

      (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK - SIGNATURE PAGE FOLLOWS)

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Warrant
Agreement to be duly executed as of the day and year first above written.

                                       IMMTECH INTERNATIONAL, INC.

                                       By:  /s/ T. Stephen Thompson
                                            --------------------------------
                                            Name:   T. Stephen Thompson
                                            Title:  President and CEO

                                       THE KRIEGSMAN GROUP

                                       By:  /s/ Steven A. Kriegsman
                                            --------------------------------
                                            Name:   Steven A. Kriegsman
                                            Title:  President

<PAGE>

                                                                       EXHIBIT A

                               WARRANT CERTIFICATE

                                 NO.: 2001-C-001
                           DATED: AS OF MARCH 15, 2001

                  THIS WARRANT CERTIFICATE REPRESENTS WARRANTS
                           TO PURCHASE 250,000 SHARES
                OF THE COMMON STOCK, PAR VALUE $.01 PER SHARE, OF
              IMMTECH INTERNATIONAL, INC., A DELAWARE CORPORATION,
                    AT AN EXERCISE PRICE OF $10.75 PER SHARE
                UNTIL 5:00 P.M. NEW YORK TIME ON MARCH 15, 2006.

            1. This certifies that, for value received, IMMTECH INTERNATIONAL,
INC., a Delaware corporation (the "Company"), upon the surrender of this Warrant
Certificate to the Company as provided in the Warrant Agreement dated as of
March 15, 2001 (as amended, supplemented or modified from time to time, the
"Warrant Agreement"), between the Company and The Kriegsman Group, will sell and
deliver, or cause to be sold and delivered, to THE KRIEGSMAN GROUP or its
registered assigns, subject to the terms and conditions set forth herein and in
the Warrant Agreement, one or more certificates for fully paid and nonassessable
shares of common stock, par value $.01 per share, of the Company (the "Common
Stock") upon payment of the Warrant Price, as defined below, for the Warrant
represented hereby which is then exercised; provided, however, that this Warrant
Certificate shall be so surrendered on or prior to 5:00 P.M. New York time, on
March 15, 2006 (the "Expiration Date"). The warrant price payable on the
exercise of each Warrant (the "Warrant Price") shall be $10.75 per share of
Common Stock, subject to adjustment as provided in the Warrant Agreement.

            2. As provided in the Warrant Agreement, the Warrant Price is
payable, upon the exercise of the Warrant, either by certified bank check, by
wire transfer of immediately available funds, or as otherwise provided therein.

            3. Upon the exercise of the Warrant represented by this Warrant
Certificate, the Form of Election to Exercise attached hereto as Attachment A
must be duly executed and delivered to the Company, with the instructions for
the registration and delivery of the certificates representing the shares of the
Common Stock properly filled in.

            4. This Warrant Certificate is issued under, and the Warrant
represented hereby is subject to, the terms and provisions contained in the
Warrant Agreement, all the terms and provisions of which the registered holder
of this Warrant Certificate, by acceptance hereof, assents. Reference is hereby
made to said Warrant Agreement for a more complete statement of the rights and
limitations of rights of the registered holder hereof and the rights and
obligations of the Company thereunder. Copies of said Warrant Agreement are on
file at the principal office of the Company in Vernon Hills, Illinois.

            5. No fractional shares will be issued upon the exercise of the
Warrant represented by this Warrant Certificate and the Company will pay the
cash value of any fractions otherwise issuable.

            6. This Warrant Certificate is transferable at the principal office
of the Company in Vernon Hills, Illinois, by the registered holder hereof in
person or by attorney duly authorized in writing but only in the manner and
subject to the terms and provisions contained in the Warrant Agreement, and upon
surrender of this Warrant Certificate with the From of Assignment attached
hereto as Attachment B filled in and executed. Upon any such transfer, a new
Warrant Certificate representing in the aggregate a like number of shares of
Common Stock will be issued to the transferee in exchange for this Warrant
Certificate.

            7. This Warrant Certificate, when surrendered at the principal
office of the Company in Vernon Hills, Illinois, by the registered holder in
person or by attorney duly authorized in writing, may be replaced, in the manner
and subject to the limitations provided in the Warrant Agreement, by another
Warrant Certificate representing in the aggregate a like number of shares of
Common Stock.

            8. The holder of this Warrant Certificate shall not be entitled to
any of the rights of a stockholder of the Company prior to the exercise hereof
and payment in full of the aggregate Warrant Price.

            IN WITNESS WHEREOF, the Company has caused this Warrant Certificate
to be duly executed and delivered.

                                       IMMTECH INTERNATIONAL, INC.

                                       By:
                                           ------------------------------------
                                            Name:   T. Stephen Thompson
                                            Title:  President
<PAGE>

                                                                  EXECUTION COPY

                                  ATTACHMENT A
                                  ------------
                                       TO
                               WARRANT CERTIFICATE

                          FORM OF ELECTION TO EXERCISE

To:   IMMTECH INTERNATIONAL, INC.:

            The undersigned hereby irrevocably elects to exercise the within
Warrant to purchase _______ shares of Company's common stock, par value $.01
per share (the "Common Stock"), as provided for therein and to pay the aggregate
Warrant Price in full by payment of $_______ either by certified bank check
enclosed herewith or by wire transfer of immediately available funds to an
account designated by the Company. In addition to the foregoing method of
payment in respect of the exercise of the Warrant, the aggregate Warrant Price
may also be paid by delivery to the Company or its designated agent, together
with this executed irrevocable Form of Election to Exercise, of irrevocable
instructions to a broker-dealer or underwriter, in form and substance
satisfactory to the Company, to (a) sell a sufficient portion of the shares of
Common Stock underlying the Warrant such that the net sale proceeds is equal to
the aggregate Warrant Price due to the Company, and (b) deliver the net sale
proceeds directly to the Company (by certified bank check or by wire transfer)
in payment of the aggregate Warrant Price. The undersigned requests that the
certificates representing the shares of Common Stock deliverable to the
undersigned be issued in the name of:

                         ---------------------------------------
                                  (Name - Please Print)

                         ---------------------------------------
                         (Identifying or Social Security Number)

and be delivered to:_______________________________
                              (Name - Please Print)

at:___________________________________________________________________________
   (Street Address)                    (City)            (State)    (Zip Code)

Name of Warrantholder:____________________________________
                                   (Please Print)

Address:__________________________________________________
                         (Street Address)
        __________________________________________________
        (City)                    (State)       (Zip Code)

Dated:__________________           Signature:

Note: The above signature must correspond with the name as written upon the face
      of the Warrant Certificate in every particular, without alteration or
      enlargement or any change whatsoever.

<PAGE>

                                 ATTACHMENT B                   EXECUTION COPY
                                 ------------
                                       TO
                               WARRANT CERTIFICATE

                               FORM OF ASSIGNMENT

            FOR VALUE RECEIVED _____________________ hereby sells, assigns and
transfers unto _____________________ the within Warrant, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint: ____________ attorney, to transfer said Warrant on the books of the
within named Corporation, with full power of substitution in the premises.

Dated:_______________________________

Signature:___________________________

Note: The above signature must correspond with the name as written upon the face
      of this Warrant Certificate in every particular without alteration or
      enlargement or any change whatever.

Signature Guaranteed:_______________________________THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY OTHER
SECURITIES LAWS, HAVE BEEN TAKEN FOR INVESTMENT, AND MAY NOT BE SOLD OR
TRANSFERRED OR OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT
UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO
SUCH SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL (WHICH OPINION
IS REASONABLY SATISFACTORY TO THE ISSUER OF THESE SECURITIES), SUCH REGISTRATION
UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

Date: July 31, 2000                                          Warrant to Purchase
                                                                    30,000
                                                                    Shares

                           IMMTECH INTERNATIONAL INC.

             (Incorporated under the laws of the State of Delaware)

                      WARRANT FOR THE PURCHASE OF SHARES OF

    THE $.01 PAR VALUE PER SHARE COMMON STOCK OF IMMTECH INTERNATIONAL, INC.

   Warrant Price: $12 1/16 per share, subject to adjustment as provided below.

       THIS IS TO CERTIFY that, for value received, Griffith Shelmire Partners,
Inc. (the "Holder"), is entitled to purchase, subject to the terms and
conditions hereinafter set forth, up to 30,000 shares of the $0.01 par value
common stock ("Common Stock") of Immtech International Inc., a Delaware
corporation (the "Company"), and to receive certificate(s) for the Common Stock
so purchased.

       1. EXERCISE PERIOD AND VESTING. The "Exercise Period" is the period
beginning on the date of this Warrant (the "Issuance Date") and ending at 5:00
p.m., New York time, on July 31, 2005 (the "Exercise Period"). This Warrant will
terminate automatically and immediately upon the expiration of the Exercise
Period. Notwithstanding the above, upon the occurrence of an acquisition of all
the issued and outstanding capital stock of the Company (by way of stock
purchase, merger or consolidation) or all or substantially all of the assets of
the Company, in each case in one transaction or a series of related
transactions, this Warrant shall terminate, unless on or prior to the date of
such occurrence, Holder exercises this Warrant (in which event, the portion of
this Warrant which was not exercised shall automatically expire, without any
action on behalf of the Company). This Warrant shall vest and become exercisable
by the Holder in three separate tranches. Holder's right to purchase 15,000
shares of Common Stock hereunder (the "First Tranche") shall vest, at the
discretion of the Company, on September 15, 2000 (which vesting may be
accelerated at the sole option of the Company, upon written notice to Holder).
Holder's right to purchase an additional 7,500 shares of Common Stock hereunder
(the "Second Tranche") shall vest on December 15, 2000; provided, however, that
the Second Tranche shall not vest if, on or prior to December 12, 2000, the
Company notifies the Holder in writing (in accordance with Section 11 below)
that the Company, in its sole discretion, is not satisfied with the services
provided to the Company by Stonegate pursuant to Section 1 of that certain
letter agreement, of even date herewith, by and between the Company and
Stonegate. Holder's right to purchase an additional 7,500 shares of Common Stock
hereunder (the "Third Tranche") shall vest on March 15, 2001; provided, however,
that the Third Tranche shall not vest if, on or prior to March 12, 2001, the
Company notifies the Holder in writing (in accordance with Section 11 below)
that the Company, in its sole discretion, is not satisfied with the services
provided to the Company by Stonegate pursuant to Section 1 of that certain
letter agreement, of even date herewith, by and between the Company and
Stonegate.

       Notwithstanding the above, this Warrant shall automatically vest in full
immediately prior to the occurrence of either of the following events: (i) a
Change in Control of the Company; or (ii) the sale of at least five million
dollars of Securities by the Company pursuant to a Placement (as such terms are
defined in the Placement Agency Agreement, of even date herewith, by and between
the Company and Stonegate Securities, Inc.).

<PAGE>

       For purposes of this Warrant, a "Change in Control" of the Company shall
be deemed to have occurred if: (a) any individual, entity or group (within the
meaning of Section l3(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) is or becomes the "beneficial owner" (as
defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing more than fifty percent
(50%) of the combined voting power of the then outstanding voting securities of
the Company; (b) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation or partnership (or, if
no such approval is required, the consummation of such a merger or consolidation
of the Company), other than a merger or consolidation that would result in the
voting securities of the Company outstanding immediately prior to the
consummation thereof continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity or of a parent
of the surviving entity) a majority of the combined voting power of the voting
securities of the surviving entity (or its parent) outstanding immediately after
that merger or consolidation; or (c) the stockholders of the Company approve a
plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company's assets
(or, if no such approval is required, the consummation of such a liquidation,
sale, or disposition in one transaction or series of related transactions),
other than a liquidation, sale or disposition of all or substantially all of the
Company's assets in one transaction or a series of related transactions to a
corporation or other entity owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their ownership of stock of
the Company.

       2. EXERCISE OF WARRANT; CASHLESS EXERCISE. Subject to the vesting
provisions of Section 1 above, this Warrant may be exercised, in whole or in
part, at any time and from time to time during the Exercise Period. Such
exercise shall be accomplished by tender to the Company of the purchase price
set forth above as the warrant price (the "Warrant Price"), either (a) in cash,
by wire transfer or by certified check or bank cashier's check, payable to the
order of the Company, or (b) by surrendering such number of shares of Common
Stock received upon exercise of this Warrant with a current market price equal
to the Warrant Price (a "Cashless Exercise"), together with presentation and
surrender to the Company of this Warrant with an executed subscription in
substantially the form attached hereto as Exhibit A (the "Subscription"). Upon
receipt of the foregoing, the Company will deliver to the Holder, as promptly as
possible, a certificate or certificates representing the shares of Common Stock
so purchased, registered in the name of the Holder or its transferee (as
permitted under Section 3 below). With respect to any exercise of this Warrant,
the Holder will for all purposes be deemed to have become the holder of record
of the number of shares of Common Stock purchased hereunder on the date this
Warrant, a properly executed Subscription and payment of the Warrant Price is
received by the Company (the "Exercise Date"), irrespective of the date of
delivery of the certificate evidencing such shares, except that, if the date of
such receipt is a date on which the stock transfer books of the Company are
closed, such person will be deemed to have become the holder of such shares at
the close of business on the next succeeding date on which the stock transfer
books are open. Fractional shares of Common Stock will not be issued upon the
exercise of this Warrant. In lieu of any factional shares that would have been
issued but for the immediately preceding sentence, the Holder will be entitled
to receive cash equal to the current market price of such fraction of a share of
Common Stock on the trading day immediately preceding the Exercise Date. In the
event this Warrant is exercised in part, the Company shall issue a new Warrant
to the Holder covering the aggregate number of shares of Common Stock as to
which this Warrant remains exercisable for.

       If the Holder elects to conduct a Cashless Exercise, the Company shall
cause to be delivered to the Holder a certificate or certificates representing
the number of shares of Common Stock computed using the following formula:

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

       Where:

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

       Y   =   the portion of the Warrant (in number of shares of Common Stock)
               being exercised by Holder (at the date of such calculation);

                                      -2-

<PAGE>

       A   =   the fair market value of one share of Common Stock on the
               Exercise Date (as calculated below); and

       B   =   Warrant Price (as adjusted to the date of such calculation).

       For purposes of the foregoing calculation, "fair market value of one
share of Common Stock on the Exercise Date" shall mean: (i) If the principal
trading market for such securities is a national or regional securities
exchange, the average closing price on such exchange for the ten (10) trading
days immediately prior to such Exercise Date; (ii) if sales prices for shares of
Common Stock are reported by the Nasdaq National Market System or Nasdaq Small
Cap Market (or a similar system then in use), the average last reported sales
price for the ten (10) trading days immediately prior to such Exercise Date; or
(iii) if neither (i) nor (ii) above are applicable, and if bid and ask prices
for shares of Common Stock are reported in the over-the-counter market by Nasdaq
(or, if not so reported, by the National Quotation Bureau), the average of the
high bid and low ask prices so reported for the ten (10) trading days
immediately prior to such Exercise Date. Notwithstanding the foregoing, if there
is no reported closing price, last reported sales price, or bid and ask prices,
as the case may be, for the period in question, then the current market price
shall be determined as of the latest ten (10) day period prior to such day for
which such closing price, last reported sales price, or bid and ask prices, as
the case may be, are available, unless such securities have not been traded on
an exchange or in the over-the-counter market for 30 or more days immediately
prior to the day in question, in which case the current market price shall be
determined in good faith by, and reflected in a formal resolution of, the Board
of Directors of the Company. The Company acknowledges and agrees that this
Warrant was issued on the Issuance Date.

       3.   TRANSFERABILITY AND EXCHANGE.

            (a) This Warrant, and the Common Stock issuable upon the exercise
hereof, may not be sold, transferred, pledged or hypothecated unless the Company
shall have been provided with an opinion of counsel reasonably satisfactory to
the Company, or other evidence reasonably satisfactory to it, that such transfer
is not in violation of the Securities Act, or any applicable state securities
laws. Subject to the satisfaction of the aforesaid condition, this Warrant and
the underlying shares of Common Stock shall be transferable from time to time by
the Holder upon written notice to the Company. If this Warrant is transferred,
in whole or in part, the Company shall, upon surrender of this Warrant to the
Company, deliver to each transferee a Warrant of like tenor evidencing the
rights of such transferee to purchase the number of shares of Common Stock that
such transferee is entitled to purchase pursuant to such transfer. The Company
may place a legend similar to the legend at the top of this Warrant on any
replacement Warrant and on each certificate representing shares issuable upon
exercise of this Warrant or any replacement Warrants. Only a registered Holder
may enforce the provisions of this Warrant against the Company. A transferee of
the original registered Holder becomes a registered Holder only upon delivery to
the Company of the original Warrant and an original Assignment, substantially in
the form set forth in Exhibit B attached hereto.

            (b) This Warrant is exchangeable upon its surrender by the Holder to
the Company for new Warrants of like tenor and date representing in the
aggregate the right to purchase the number of shares purchasable hereunder, each
of such new Warrants to represent the right to purchase such number of shares as
may be designated by the Holder at the time of such surrender.

      4.   ADJUSTMENTS TO WARRANT PRICE AND NUMBER OF SHARES SUBJECT TO WARRANT.
The Warrant Price and the number of shares of Common Stock purchasable upon the
exercise of this Warrant are subject to adjustment from time to time upon the
occurrence of any of the events specified in this Section 4. For the purpose of
this Section 4, "Common Stock" means shares now or hereafter authorized of any
class of common stock of the Company and any other stock of the Company, however
designated, that has the right to participate in any distribution of the assets
or earnings of the Company without limit as to per share amount (excluding, and
subject to any prior rights of, any class or series of preferred stock).

            (a) In case the Company shall (i) pay a dividend or make a
distribution in shares of Common Stock or other securities, (ii) subdivide its
outstanding shares of Common Stock into a greater number of shares, (iii)
combine its outstanding shares of Common Stock into a smaller number of shares,
or (iv) issue by reclassification of its shares of Common Stock other securities
of the Company, then the Warrant Price in effect at

                                      -3-

<PAGE>

the time of the record date for such dividend or on the effective date of such
subdivision, combination or reclassification, and/or the number and kind of
securities issuable on such date, shall be proportionately adjusted so that the
Holder of any Warrant thereafter exercised shall be entitled to receive the
aggregate number and kind of shares of Common Stock (or such other securities
other than Common Stock) of the Company, at the same aggregate Warrant Price,
that, if such Warrant had been exercised immediately prior to such date, the
Holder would have owned upon such exercise and been entitled to receive by
virtue of such dividend, distribution, subdivision, combination or
reclassification. Such adjustment shall be made successively whenever any event
listed above shall occur.

            (b) In case the Company shall fix a record date for the making of a
distribution to all holders of Common Stock (including any such distribution
made in connection with a consolidation or merger in which the Company is the
surviving corporation) of cash, evidences of indebtedness or assets, or
subscription rights or warrants, the Warrant Price to be in effect after such
record date shall be determined by multiplying the Warrant Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the current market price per share of Common Stock on such record date,
less the amount of cash so to be distributed (or the fair market value (as
determined in good faith by, and reflected in a formal resolution of, the Board
of Directors of the Company) of the portion of the assets or evidences of
indebtedness so to be distributed, or of such subscription rights or warrants,
applicable to one share of Common Stock), and the denominator of which shall be
such current market price per share of Common Stock. Such adjustment shall be
made successively whenever such a record date is fixed; and in the event that
such distribution is not so made, the Warrant Price shall again be adjusted to
be the Warrant Price which would then be in effect if such record date had not
been fixed.

            (c) For the purpose of any computation under any subsection of this
Section 4, the "current market price" per share of Common Stock on any date
shall be the per share price of the Common Stock on the trading day immediately
prior to the event requiring an adjustment hereunder and shall be: (i) if the
principal trading market for such securities is a national or regional
securities exchange, the closing price on such exchange on such day; or (ii) if
sales prices for shares of Common Stock are reported by the Nasdaq National
Market System or Small Cap Market System (or a similar system then in use), the
last reported sales price so reported on such day; or (iii) if neither (i) nor
(ii) above are applicable, and if bid and ask prices for shares of Common Stock
are reported in the over-the-counter market by Nasdaq (or, if not so reported,
by the National Quotation Bureau), the average of the high bid and low ask
prices so reported on such day. Notwithstanding the foregoing, if there is no
reported closing price, last reported sales price, or bid and ask prices, as the
case may be, for the day in question, then the current market price shall be
determined as of the latest date prior to such day for which such closing price,
last reported sales price, or bid and ask prices, as the case may be, are
available, unless such securities have not been traded on an exchange or in the
over-the-counter market for 30 or more days immediately prior to the day in
question, in which case the current market price shall be determined in good
faith by, and reflected in a formal resolution of, the Board of Directors of the
Company.

            (d) Notwithstanding any provision herein to the contrary, no
adjustment in the Warrant Price shall be required unless such adjustment would
require an increase or decrease of at least 1% in the Warrant Price; provided,
however, that any adjustments which by reason of' this subsection (d) are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 4 shall be made to
the nearest cent or the nearest one-hundredth of a share, as the case may be.

            (e) In the event that at any time, as a result of an adjustment made
pursuant to subsection (a) above, the Holder of any Warrant thereafter exercised
shall become entitled to receive any shares of capital stock of the Company
other than shares of Common Stock, thereafter the number of such other shares so
receivable upon exercise of any Warrant shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the shares of Common Stock contained in this Section
4, and the other provisions of this Warrant shall apply on like terms to any
such other shares.

            (f) If the Company merges or consolidates into or with another
corporation or entity, or if another corporation or entity merges into or with
the Company (excluding such a merger in which the Company is the surviving or
continuing corporation and which does not result in any reclassification,
conversion, exchange, or cancellation of the outstanding shares of Common
Stock), or if all or substantially all of the assets or business of the Company
are sold or transferred to another corporation, entity, or person, then, as a
condition to such consolidation,

                                      -4-

<PAGE>

merger, or sale (a "Transaction"), lawful and adequate provision shall be made
whereby the Holder shall have the right from and after the Transaction to
receive, upon exercise of this Warrant and upon the terms and conditions
specified herein and in lieu of the shares of the Common Stock that would have
been issuable if this Warrant had been exercised immediately before the
Transaction, such shares of stock, securities, or assets as the Holder would
have owned immediately after the Transaction if the Holder had exercised this
Warrant immediately before the effective date of the Transaction (it being
acknowledged and agreed that the Warrant Price is not subject to change in the
event the Company issues securities at a price lower than the Warrant Price,
except as provided above in this Section 4).

       5. REGISTRATION RIGHTS. The Holder shall be entitled to the
benefits of the registration rights set forth in Exhibit C attached hereto.

       6. RESERVATION OF SHARES. The Company agrees at all times to reserve and
hold available out of its authorized but unissued shares of Common Stock the
number of shares of Common Stock issuable upon the full exercise of this
Warrant. The Company further covenants and agrees that all shares of Common
Stock that may be delivered upon the exercise of this Warrant will, upon
delivery, be fully paid and nonassessable and free from all taxes, liens and
charges with respect to the purchase thereof hereunder.

       7. NOTICES TO HOLDER. Upon any adjustment of the Warrant Price (or number
of shares of Common Stock purchasable upon the exercise of this Warrant)
pursuant to Section 4, the Company shall promptly thereafter cause to be given
to the Holder written notice of such adjustment. Such notice shall include the
Warrant Price (and/or the number of shares of Common Stock purchasable upon the
exercise of this Warrant) after such adjustment, and shall set forth in
reasonable detail the Company's method of calculation and the facts upon which
such calculations were based. Where appropriate, such notice shall be given in
advance and included as a part of any notice required to be given under the
other provisions of this Section 7.

       In the event of (a) any fixing by the Company of a record date with
respect to the holders of any class of securities of the Company for the purpose
of determining which of such holders are entitled to dividends or other
distributions, or any rights to subscribe for, purchase or otherwise acquire any
shares of capital stock of any class or any other securities or property, or to
receive any other right, (b) any capital reorganization of the Company, or
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all of the assets or business of the Company
to, or consolidation or merger of the Company with or into, any other entity or
person, or (c) any voluntary or involuntary dissolution or winding up of the
Company, then and in each such event the Company will give the Holder a written
notice specifying, as the case may be (i) the record date for the purpose of
such dividend, distribution, or right, and stating the amount and character of
such dividend, distribution, or right; or (ii) the date on which any such
reorganization, reclassification, recapitalization, transfer, consolidation,
merger, conveyance, dissolution, liquidation, or winding up is to take place and
the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such capital stock or securities receivable upon the exercise of this
Warrant) shall be entitled to exchange their shares of Common Stock (or such
other stock securities) for securities or other property deliverable upon such
event. Any such notice shall be given at least 10 days prior to the earliest
date therein specified.

       8. NO RIGHTS AS A STOCKHOLDER. This Warrant does not entitle the Holder
to any voting rights or other rights as a stockholder of the Company, nor to any
other rights whatsoever except the rights herein set forth.

       9. ADDITIONAL COVENANTS OF THE COMPANY. At such time as the Common Stock
is listed for trading on any regional or national securities exchange or Nasdaq,
the Company shall, upon issuance of any shares for which this Warrant is
exercisable, at its expense, promptly obtain and maintain the listing of such
shares.

       The Company shall comply with the reporting requirements of Sections 13
and 15(d) of the Exchange Act for so long as and to the extent that such
requirements apply to the Company.

       The Company shall not, by amendment of its Articles or Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant. Without limiting the generality of the foregoing, the Company (a) will
at all times reserve and keep available, solely for

                                      -5-
<PAGE>

issuance and delivery upon exercise or this Warrant, shares of Common Stock
issuable from time to time upon exercise of this Warrant, (b) will not increase
the par value of any shares of capital stock receivable upon exercise of this
Warrant above the amount payable therefor upon such exercise, and (c) will take
all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable stock.

       10. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the Company, the Holder and their respective successors
and permitted assigns.

       11. NOTICES. The Company agrees to maintain a ledger of the ownership of
this Warrant (the "Ledger"). Any notice hereunder shall be given by registered
or certified mail if to the Company, at its principal executive office and, if
to the Holder, to its address shown in the Ledger of the Company; provided,
however, that the Holder may at any time on three (3) days written notice to the
Company designate or substitute another address where notice is to be given.
Notice shall be deemed given and received after a certified or registered
letter, properly addressed with postage prepaid, is deposited in the U.S. mail.

       12. SEVERABILITY. Every provision of this Warrant is intended to be
severable. If any term or provision hereof is illegal or invalid for any reason
whatsoever, such illegality or invalidity shall not affect the remainder of this
Warrant.

       13. GOVERNING LAW. This Warrant shall be governed by and construed in
accordance with the laws of the State of Delaware without giving effect to the
principles of choice of laws thereof.

       14. ATTORNEYS' FEES. In any action or proceeding brought to enforce any
provision of this Warrant, the prevailing party shall be entitled to recover
reasonable attorneys' fees in addition to its costs and expenses and any other
available remedy.

       15. ENTIRE AGREEMENT. This Warrant (including the Exhibits attached
hereto) constitutes the entire understanding between the Company and the Holder
with respect to the subject matter hereof, and supersedes all prior
negotiations, discussions, agreements and understandings relating to such
subject matter.

       IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its duly authorized officer as of the date first set forth above.

                                             IMMTECH INTERNATIONAL INC.

                                             By: _______________________________
                                             Title:_____________________________

                                      -6-

<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM

(To be Executed by the Holder to Exercise the Rights To Purchase Common Stock
Evidenced by the Within Warrant)

       The undersigned hereby irrevocably subscribes for _______ shares (the
"Stock") of the Common Stock of Immtech International Inc. (the "Company")
pursuant to and in accordance with the terms and conditions of the attached
Warrant (the "Warrant"), and hereby makes payment of $________ therefor by
[tendering cash, wire transferring or delivering a certified check or bank
cashier's check, payable to the order of the Company] [surrendering _____ shares
of Common Stock received upon exercise of the Warrant, which shares have a
current market price equal to such payment as required in Section 2 of the
Warrant]. The undersigned requests that a certificate for the Stock be issued in
the name of the undersigned and be delivered to the undersigned at the address
stated below. If the Stock is not all of the shares purchasable pursuant to the
Warrant, the undersigned requests that a new Warrant of like tenor for the
balance of the remaining shares purchasable thereunder be delivered to the
undersigned at the address stated below.

       In connection with the issuance of the Stock, I hereby represent to the
Company that I am acquiring the Stock for my own account for investment and not
with a view to, or for resale in connection with, a distribution of the shares
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

       I understand that because the Stock has not been registered under the
Securities Act, I must hold such Stock indefinitely unless the Stock is
subsequently registered and qualified under the Securities Act or is exempt from
such registration and qualification. I shall make no transfer or disposition of
the Stock unless (a) such transfer or disposition can be made without
registration under the Securities Act by reason of a specific exemption from
such registration and such qualification, or (b) a registration statement has
been filed pursuant to the Securities Act and has been declared effective with
respect to such disposition. I agree that each certificate representing the
Stock delivered to me shall bear substantially the same as set forth on the
front page of the Warrant.

       I further agree that the Company may place stop orders on the
certificates evidencing the Stock with the transfer agent, if any, to the same
effect as the above legend. The legend and stop transfer notice referred to
above shall be removed only upon my furnishing to the Company an opinion of
counsel (reasonably satisfactory to the Company) to the effect that such legend
may be removed.

Date:__________________________________

Signed:

Address:_______________________________

                                      A-1

<PAGE>

                                    EXHIBIT B

                                   ASSIGNMENT

    (TO BE EXECUTED BY THE HOLDER TO EFFECT TRANSFER OF THE ATTACHED WARRANT)

For Value Received ____________________ hereby sells, assigns and transfers to

____________________ the Warrant attached hereto and the rights represented

thereby to purchase __________ shares of Common Stock in accordance with the

terms and conditions hereof, and does hereby irrevocably constitute and appoint

_____________________ as attorney to transfer such Warrant on the books of the

Company with full power of substitution.

Dated:________________________________   Signed:______________________________

Please print or typewrite                Please insert Social Security
name and address of                      or other Tax Identification
assignee:                                Number of Assignee:

______________________________________   _____________________________________

______________________________________

______________________________________

                                      B-1

<PAGE>

                                    EXHIBIT C

                               REGISTRATION RIGHTS

1.     DEFINITIONS

       Affiliate: With reference to any designated Person, any Person that has a
relationship with such designated Person whereby either of such Persons directly
or indirectly controls or is controlled by or is under common control with the
other. For this purpose "control" means the power, direct or indirect of one
Person to direct or cause direction of the management and policies of another,
whether by contract, through voting securities or otherwise.

       Commission: The Securities and Exchange Commission or any other
governmental body at the time administering the Securities Act.

       Common Stock: The Company's authorized common stock, no par value per
share, as constituted on the date of this Warrant, any stock into which such
Common Stock may thereafter be changed and any stock of the Company of any other
class, which is not preferred as to dividends or assets over any other class of
stock of the Company and which is not subject to redemption, issued to the
holders of shares of such Common Stock upon any re-classification thereof.

       Company Securities: Any equity securities proposed to be sold by the
Company in the registration statement referred to.

       Person: A corporation, an association, a partnership, a limited liability
company, a joint venture, a trust, an organization, a business, an entity, an
individual, a government or political subdivision thereof or a governmental
body.

       Registrable Securities: Common Stock and any securities of the Company
issued with respect to the Common Stock by way of stock dividend or stock split
or in connection with a combination, recapitalization, share exchange,
consolidation or other reorganization of the Company. As to any Registrable
Securities, once issued such securities shall cease to be Registrable Securities
when (i) a registration statement with respect to the sale of such securities
shall have become effective under the Securities Act and such securities shall
have been disposed of in accordance with such registration statement, (ii) they
shall have been distributed to the pubic pursuant to Rule 144 (or any successor
provision) under the Securities Act, (iii) they shall have been otherwise
transferred, new certificates for them not bearing a legend restricting further
transfer shall have been delivered by the Company and subsequent disposition of
them shall not require registration or qualification of them under the
Securities Act or any similar state law then in force, or (iv) they shall have
ceased to be outstanding.

       Selling Expenses: All underwriting discounts, selling commissions and
stock transfer taxes applicable to the securities registered by the Holder and,
except as provided in Section 4 hereof, all fees and disbursements of counsel
for the Holder.

Capitalized terms used in this Exhibit C but not otherwise defined herein shall
have the meanings ascribed to such terms in the Warrant.

2.     REGISTRATION RIGHTS

       2.1. Registration on Request.

       (a)  Except as provided in subsection (b) of this Section 2.1, upon
the written request of Holders (which request must be initiated by either
Stonegate Securities, Inc. or any of its directors or officers who are Holders)
owning at least 60,000 Registrable Securities (as appropriately adjusted for
stock splits, stock dividends, reorganizations and the like) (which request
shall specify the number of Registrable Securities to be registered), the
Company shall, as expeditiously as reasonably possible, notify all other Holders
of such request (and allowing them

                                      C-1

<PAGE>

to participate therein), and use its best efforts to effect the registration
under tie Securities Act of the Registrable Securities of all Holders which the
Company has been so requested to register.

       (b) The Company shall not be obligated to take any action to effect any
registration requested by the Holders pursuant to subsection (a) above (i) after
two years from the date of this Warrant, or (ii) after the Company has effected
one (1) registration pursuant to this Section 2.1 and such registration has been
declared or ordered effective.

       (c) Notwithstanding any other provision hereof to the contrary, a
registration requested pursuant to this Section 2.1 shall not be deemed to have
been effected (i) unless it has become effective and remains effective for at
least 180 days; provided, however, that a registration which does not become
effective after the Company has filed a registration statement with respect
thereto solely by reason of the refusal by a requesting Holder, in its sole
discretion, to proceed with such registration shall be deemed to have been
effected by the Company at the request of the Holders unless the requesting
Holder shall have elected to pay all Company Registration Expenses (as defined
in Section 4 below) in connection with such registration, (ii) if after it has
become effective such registration is interfered with by any stop order,
injunction or other order or requirement of the Commission or other governmental
agency or court for any reason other than a misrepresentation or an omission by
any participating Holder, or (iii) if the conditions to closing specified in the
purchase agreement or underwriting agreement entered into in connection with
such registration are not satisfied other than by reason of some wrongful act or
omission, or act or omission in bad faith, by any participating Holder.

       (d) The Company shall not be obligated to effect any registration
pursuant to this Section 2.1 within 90 days after the effective date of any
underwritten public offering by the Company (which period may be extended up to
an additional 90 days if, and only to the extent that, all directors, executive
officers and other persons with registration rights with respect to securities
of the Company are required to execute standard lockup agreements with the
underwriters in such public offering) or of any previous registration withdrawn
at the request of the requesting Holders. The Company may postpone for up to 90
days the filing or the effectiveness of a registration statement for a
registration pursuant to this Section 2.1 if the financial advisor and/or
underwriter to the Company certifies to the holders of the Registrable
Securities that such registration would reasonably be expected to have a
material adverse effect on the Company; provided, however, that in such event
the Holders of Registrable Securities requesting such Registration shall be
entitled to withdraw such request and, if such request is withdrawn, such
Registration shall not count as the one permitted registration under this
Section 2.1 and the Company shall pay all Registration Expenses in connection
with such postponed or withdrawn registration. Notwithstanding the above, the
Company may delay a demand registration pursuant to this Section 2.1 only once
in any twelve month period. In addition, upon written notice from the Company to
Holder of the effectiveness of an underwritten public offering, Holder agrees
not to sell any Registrable Securities under any registration statement effected
under this Section 2.1 for a period of thirty (30) days following such effective
date.

2.2. Incidental Registration.

       (a) If the Company at any time proposes to register any of its equity
securities under the Securities Act on any form other than Form S-4 or Form S-8
(or any similar or successor form then in effect), whether or not for sale for
its own account, and if the registration form proposed to be used may be used
for the registration of Registrable Securities, the Company will in each such
case give prompt written notice (and in any event at least 10 business days'
prior written notice prior to the filing of such registration statement) to the
Holders of the Company's intention to do so, such notice to specify the
securities to be registered, the proposed numbers and amounts thereof and the
date not less than 20 days thereafter by which the Company must receive the
Holders' written indication of whether the Holders wish to include their
Registrable Securities in such registration statement and advising the Holders
of their rights under this Section 2.2. Upon the written request of any Holder
made on or before the date specified in such notice (which request shall specify
the number of Registrable Securities intended to be disposed of by such Holder),
the Company will, to the extent permitted under Section 7, use its best efforts
to cause all such Registrable Securities, which the Holders have so requested
the registration thereof, to be registered under the Securities Act (with the
securities that the Company at the time proposes to register), to the extent
requisite to permit the sale or other disposition by the Holders of the
Registrable Securities to be so registered.

                                      C-2

<PAGE>

       (b) No registration effected pursuant to a request referred to in this
Section 2.2 shall be deemed to have been effected pursuant to Section 2.1.

       (c) Notwithstanding anything to the contrary in this Section 2.2, the
Company shall have the right to discontinue any registration under this Section
2.2 at any time prior to the effective date of such registration if the
registration of other securities giving rise to such registration under this
Section 2.2 is discontinued.

3.   REGISTRATION PROCEDURES.

       If and whenever the Company is required by the provisions hereof to
effect or cause the registration of any Registrable Securities under the
Securities Act as provided herein, the Company will, as expeditiously as
possible:

       (a) prepare and file with the Commission (in the case of a registration
pursuant to Section 2.1, such filing to be made as soon thereafter as possible
but in any event within 60 days after the request by the requisite Holders to
register Registrable Securities) a registration statement with respect to such
Registrable Securities and use all commercially reasonable efforts to cause such
registration statement to become and remain effective (provided that, before
filing a registration statement or prospectus or any amendments or supplements
thereto, the Company will furnish to one counsel selected by the Holders copies
of all such documents proposed to be filed, which documents will be subject to
the review of such counsel);

       (b) prepare and file with the Commission such amendments and supplements
to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective for a period
of at least 180 days (or such shorter period as shall be necessary to complete
the distribution of the securities covered thereby) and to comply with the
provisions of the Securities Act with respect to the sale or other disposition
of all securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the seller or sellers
thereof set forth in such registration statement;

       (c) furnish to counsel for the Holders and each underwriter of the
securities being sold by the Holders such number of copies of such registration
statement and of each such amendment and supplement thereto (in each case
including all exhibits), such number of copies of the prospectus included in
such registration statement (including each preliminary prospectus), in
conformity with the requirements of the Securities Act, and such other
documents, as such counsel may reasonably request, in substantially the form in
which they are proposed to be filed with the Commission, in order to facilitate
the public sale or other disposition of the Registrable Securities owned by the
participating Holders;

       (d) use all commercially reasonable efforts to register or quality such
Registrable Securities covered by such registration statement under such other
securities or blue sky laws of such jurisdictions as the Holders shall
reasonably request, and do any and all other acts and things which may be
necessary or advisable to enable the Holders and any underwriter to consummate
the disposition in such jurisdictions of such Registrable Securities owned by
the participating Holders, except that the Company shall not for any such
purpose be required to qualify generally to do business as a foreign corporation
in any jurisdiction where, but for the requirements of this subsection (d), it
would not be obligated to be so qualified, or to subject itself to taxation in
any such jurisdiction;

       (e) use all commercially reasonable efforts to cause such Registrable
Securities covered by such registration statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the participating Holders to consummate the disposition of its
Registrable Securities;

       (f) notify the participating Holders at any time when a prospectus
relating to its Registrable Securities is required to be delivered under the
Securities Act, of the Company's becoming aware that the prospectus included in
the related 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 not misleading in
light of the circumstances then existing, and promptly prepare and furnish to
the participating Holders and each underwriter a reasonable number of copies of
a prospectus supplemented or amended so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not include an
untrue statement of a material fact or

                                      C-3

<PAGE>

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;

       (g) otherwise use all commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission;

       (h) use all commercially reasonable efforts (1) to cause all such
Registrable Securities covered by such registration statement to be listed on a
national securities exchange (if such Registrable Securities are not already so
listed) and on each additional national securities exchange on which similar
securities issued by the Company are then listed, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(2) to secure designation of all such Registrable Securities covered by such

registration statement as a Nasdaq "national market system security" or "small
cap system security" within the meaning of Rule 11Aa21 of the Commission or,
failing that, to secure Nasdaq authorization for such Registrable Securities
and, without limiting the generality of the foregoing, to arrange for at least
two market makers to register as such with respect to such Registrable
Securities with the National Association of Securities Dealers.

       (i) enter into such agreements (including an underwriting
agreement in customary form) and take such other actions as the Holder shall
reasonably request in order to expedite or facilitate the disposition of its
Registrable Securities;

       (j) in the case of a registration instituted pursuant to Section 2.1 (if
typically requested in a registration of the type being undertaken), to use its
best efforts to furnish to any participating Holder an opinion from the
Company's counsel and a "cold comfort" letter from the Company's independent
public accountants, addressed to such participating Holder, in customary form
and covering such matters of the type customarily covered by such opinions and
"cold comfort" letters as such participating Holder shall reasonably request;

       (k) make available for inspection by any participating Holder and
by any underwriter participating in any disposition to be effected pursuant to
such registration statement and by any attorney, accountant or other agent
retained by the Holder or any such underwriter, all pertinent financial and
other records, pertinent corporate documents and properties of the Company, and
cause all of the Company's officers, directors, employees and the independent
public accountants who have certified its financial statements to supply all
information reasonably requested by any participating Holder, underwriter,
attorney, accountant or agent in connection with such registration statement;

       (l) permit the Holder (1) to participate in the preparation of such
registration or comparable statement, (2) to request the insertion therein of
material, furnished to the Company in writing, which in the reasonable judgment
of any participating Holder should be included (with the insertion of such
material being in the reasonable judgment of the Company) and (3) to receive
such documents and make such requests as any participating Holder is entitled to
under this Section 3;

       (m) in the case of an underwritten offering, enable the Registrable
Securities to be in such denominations and registered in such names as the
underwriters may request at least two business days prior to the sale of the
Registrable Securities; and

       (n) notify the Holder of any stop order threatened or issued by the
Commission and take all actions reasonably necessary to prevent the entry of
such stop order or to remove it if entered.

The Holders shall be deemed to have agreed by acquisition of such Registrable
Securities that, upon receipt of any notice from the Company of the happening of
any event of the kind described in subsection (f) above, the Holders will
forthwith discontinue their disposition of Registrable Securities pursuant to
the registration statement covering such Registrable Securities until the
Holders' receipt of the copies of the supplemented or amended prospectus
contemplated by said subsection and, if so directed by the Company, will deliver
to the Company (at the Company's expense) all copies, other than permanent file
copies, then in the Holders' possession of the prospectus covering such
Registrable Securities current at the time of receipt of such notice. In the
event the Company shall give any such notice, the period mentioned in subsection
(b) above shall be extended by the number of days during the period

                                      C-4
<PAGE>

from and including the date of the giving of such notice to and including the
date when the Holders shall have received the copies of the supplemented or
amended prospectus contemplated by subsection (f) above.

       Each participating Holder shall furnish to the Company in writing such
information and documents regarding it and the distribution of its securities as
may reasonably be required to be disclosed in the registration statement in
question by the rules and regulations under the Securities Act or under any
other applicable securities or blue sky laws of the jurisdictions referred to in
subsection (d) above.

       If any such registration or comparable statement refers to any
participating Holder by name or otherwise as the holder of any securities of the
Company, but such reference to such participating Holder by name or otherwise is
not required by the Securities Act or any similar federal statute then in force,
then such participating Holder shall have the right to require the deletion of
the reference to such participating Holder.

4. REGISTRATION EXPENSES

       In connection with any registration of Registrable Securities pursuant to
Section 2.1 or 2.2, the Company will, whether or not any such registration shall
become effective, from time to time promptly upon receipt of bills or invoices
relating thereto, pay all expenses (other than Selling Expenses) incident to its
performance of or compliance herewith (the "Company Registration Expenses"),
including, without limitation, all registration, filing and NASD fees, fees and
expenses of compliance with securities or blue sky laws, word processing,
duplicating and printing expenses, messenger and delivery expenses, fees and
disbursements of counsel for the Company and all independent public accountants
(including the expenses of any audit and/or "cold comfort" letter) and other
Persons retained by the Company, reasonable fees and disbursements of one
counsel or firm of counsel retained by the Holders (as a group) (not to exceed
$3,000) and any fees and disbursements of underwriters customarily paid by
issuers or sellers of securities (excluding underwriting commissions and
discounts, except where they are customarily paid by issuers).

5. INDEMNIFICATION

       (a) The Company will, and hereby does, indemnify, to the extent permitted
by law, each Holder and each Person, if any, who controls each Holder within the
meaning of Section 15 of the Securities Act (collectively, "Holder Indemnified
Parties"), from and against all losses, claims, damages, liabilities and
expenses, joint or several, to which any such Holder Indemnified Party may
become subject under the Securities Act, the Exchange Act and all rules and
regulations under each such Act, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are based
upon (i) any untrue statement or alleged untrue statement of a material fact
contained in any registration statement as contemplated hereby 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, (ii) any
untrue statement or alleged untrue statement of a material fact contained in any
preliminary, final or summary prospectus, together with the documents
incorporated by reference therein (as amended or supplemented if the Company
shall have filed with the Commission any amendment thereof or supplement
thereto), or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, or (iii) any violation by the Company of any federal, state or
common law rule or regulation applicable to the Company and relating to action
of or inaction by the Company in connection with any such registration; and in
each such case, the Company shall reimburse each such Holder Indemnified Party
for any reasonable legal or other expenses incurred by any of them in connection
with investigating or defending any such loss, claim, damage, liability,
expense, action or proceeding; provided, however, that the Company shall not be
liable to any such Holder Indemnified Party insofar as such losses, claims,
damages, liabilities, expenses, actions or proceedings are caused by any untrue
statement or alleged untrue statement made in reliance on or in conformity with
any information furnished in writing to the Company by or on behalf of the
Holder Indemnified Party expressly for use therein (it being agreed and
understood that if the Company refuses to include in any registration statement
any information furnished by Holder to the Company for inclusion therein, then
this proviso shall not be applicable).

       If the offering pursuant to any registration statement provided for
hereunder is made through underwriters, no action or failure to act on the part
of such underwriters (whether or not any such underwriter is an Affiliate of any

                                       C-5
<PAGE>

Holder Indemnified Party) shall affect the Company's obligations to indemnify
the Holder Indemnified Parties pursuant to the preceding paragraph. If the
offering pursuant to any registration statement provided for hereunder is made
through underwriters, the Company agrees to enter into an underwriting agreement
in customary form with such underwriters and to indemnify such underwriters,
their officers and directors, if any, and each Person, if any, who controls such
underwriters within the meaning of Section 15 of the Securities Act to the same
extent as hereinbefore provided with respect to the indemnification of the
Holder Indemnified Parties; provided, however, that the Company shall not be
required to indemnify any such underwriter, or any officer or director of such
underwriter or any Person who controls such underwriter within the meaning of
Section 15 of the Securities Act, to the extent that the loss, claim, damage,
liability, expense, action or proceeding for which indemnification is claimed
results from such underwriter's failure to send or give a copy of the amended or
supplemented final prospectus, at or prior to the written confirmation of the
sale of Registrable Securities, to a Person asserting the existence of an untrue
statement or alleged untrue statement or omission or alleged omission if such
statement or omission was corrected in such amended or supplemented final
prospectus prior to such written confirmation and the underwriter was given
notice of the availability of such amended or supplemented final prospectus.

       In connection with any registration statement in which any Holder is
participating, such participating Holder will furnish to the Company in writing
such information as shall be reasonably requested by the Company for use in any
such registration statement or prospectus and will indemnify, to the extent
permitted by law, the Company, its officers and directors and each Person, if
any, who controls the Company within the meaning of Section 15 of the Securities
Act, against any losses, claims, damages, liabilities, expenses, actions or
proceedings resulting from any untrue statement or alleged untrue statement of a
material fact or any omission or alleged omission of a material fact required to
be stated in the registration statement or prospectus or preliminary prospectus
or any amendment thereof or supplement thereto, or necessary to make the
statement therein not misleading, but only to the extent that such untrue
statement or omission is made in reliance on or in conformity with any
information so furnished in writing by such participating Holder expressly for
use therein.

       Any Person entitled to indemnification under the provisions of this
Section 5 shall (i) give prompt notice to the indemnifying party of any claim
with respect to which it seeks indemnification, and (ii) unless in such
indemnified party's reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist in respect of such claim, permit
such indemnifying party to assume the defense of such claim, with counsel
reasonably satisfactory to the indemnified party; and if such defense is so
assumed, such indemnifying party shall not enter into any settlement without the
consent of the indemnified party if such settlement attributes liability to the
indemnified party and such indemnifying party shall not be subject to any
liability for any settlement made without its consent (which shall not be
unreasonably withheld); and any underwriting agreement entered into with respect
to any registration statement provided for hereunder shall so provide. In the
event an indemnifying party shall not be entitled, or elects not, to assume the
defense of a claim, such indemnifying party shall not be obligated to pay the
fees and expenses of more than one counsel or firm of counsel (plus one local
counsel or firm of counsel) for all parties indemnified by such indemnifying
party hereunder in respect of such claim, unless in the reasonable judgment of
any such indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties in respect to such
claim. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of any Holder Indemnified Party and shall
survive the transfer of such securities by such Holder Indemnified Party.

       (b) If for any reason the foregoing indemnity is unavailable, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages, liabilities or
expenses (i) in such proportion as is appropriate to reflect the relative
benefits received by the indemnifying party on the one hand and the indemnified
party on the other, or (ii) if the allocation provided by subdivision (i) above
is not permitted by applicable law or provides a lesser sum to the indemnified
party than the amount hereinafter calculated, in such proportion as is
appropriate to reflect not only the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other but
also the relative fault of the indemnifying party and the indemnified party as
well as any other relevant equitable considerations. Notwithstanding the
foregoing, no Holder shall be required to contribute any amount in excess of the
amount such Holder would have been required to pay to an indemnified party if be
indemnity under subdivision (a) of this Section 5 was available. No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent

                                       C-6

<PAGE>

misrepresentation. The obligation of any underwriters to contribute pursuant to
this Section 5 shall be several in proportion to their respective underwriting
commitments and not joint.

       (c) An indemnifying party shall make payments of all amounts
required to be made pursuant to the foregoing provisions of this Section 5 to or
for the account of the indemnified party from time to time promptly upon receipt
of bills or invoices relating thereto or when otherwise due and payable.

6. CERTAIN LIMITATIONS ON REGISTRATION RIGHTS

       In the case of a registration under Section 2.1, if any Holder determines
to enter into an underwriting agreement in connection therewith or, in the case
of a registration under Section 2.2, if the Company determines to enter into an
underwriting agreement in connection therewith, all Registrable Securities to be
included in such registration shall be subject to such underwriting agreement
and no Person may participate in such registration unless such Person agrees to
sell such Person's securities on the basis provided in such underwriting
agreement and completes and/or executes all questionnaires, indemnities, and
other reasonable documents which must be executed under the terms of such
underwriting agreement.

7. ALLOCATION OF SECURITIES INCLUDED IN REGISTRATION STATEMENT

       In the case of a registration pursuant to Section 2.2, if the Company's
managing underwriter shall advise the Company and the Holders in writing that
the inclusion in any registration pursuant hereto of some or all of (a) the
Registrable Securities sought to be registered by the Holders, and (b) the
Company Securities sought to be registered creates a substantial risk that the
proceeds or price per unit that will be derived from such registration will be
reduced or that the number of securities to be registered is too large a number
to be reasonably sold, (i) first, the number of Company Securities (or
securities of other Persons exercising "demand rights") sought to be registered
shall be included in such registration, and (ii) next, the number of Registrable
Securities and other securities of holders exercising "piggyback rights" shall
be included in such registration to the extent permitted by the Company's
managing underwriter (if the offering is underwritten) with the number of
Registrable Securities and such other securities being registered being on a pro
rata basis based on the number of securities the participating Holders and each
such other holder desire to have registered; provided, however, that, if any
participating Holder would be required pursuant to the provisions of this
Section 7 to reduce the number of Registrable Securities that it may include in
such registration, such participating Holder may withdraw all or any portion of
its Registrable Securities from such registration.

8. LIMITATIONS ON SALE OR DISTRIBUTION OF SECURITIES

       If a registration hereunder shall be in connection with an underwritten
public offering, the participating Holders shall be deemed to have agreed by
acquisition of their Registrable Securities not to effect any public sale or
distribution, including any sale pursuant to Rule 144 under the Securities Act,
of any Registrable Securities and to use their best efforts not to effect any
such public sale or distribution of any other equity security of the Company or
of any security convertible into or exchangeable or exercisable for any equity
security of the Company (other than as part of such underwritten public
offering) within 30 days before or 90 days (which period may be extended up to
an additional 90 days if, and only to the extent that, all directors, executive
officers and other persons with registration rights with respect to securities
of the Company are required to execute standard lockup agreements with the
underwriters in such public offering) after the effective date of such
registration statement. In such event, such participating Holders agree, if
requested, to sign a customary market standoff letter with the Company's
managing underwriter, and to comply with applicable rules and regulations of the
Commission.

9. RULE 144

       The Company covenants that it will file the reports required to be filed
under the Securities Act and the Exchange Act and the rules and regulations
adopted by the Commission thereunder (or, in the event that the Company is not
required to file such reports, it will make publicly available information as
set forth in Rule 144(c)(2) promulgated under the Securities Act), and it will
take such further action as any Holder may reasonably request, or to the extent
required from time to time to enable the Holders to sell their Registrable
Securities without registration

                                      C-7

<PAGE>

under the Securities Act within the limitation
of the exemption provided by (a) Rule 144 under the Securities Act, as such Rule
may be amended from time to time, or (b) any similar rule or regulation
hereafter adopted by the Commission (collectively, "Rule 144"). Upon request of
any Holder, the Company will deliver to such Holder a written statement as to
whether it has complied with such requirements.

10. REGISTRATION RIGHTS OF OTHERS

       If the Company shall at any time hereafter provide any Person any Company
rights with respect to the registration of any securities of the Company under
the Securities Act, such rights shall not be in conflict with any of the rights
provided herein to the Holders.

11. TRANSFER OF REGISTRATION RIGHTS

       If and to the extent that any Holder sells or otherwise disposes of
Registrable Securities in any transaction that does not require registration
under the Securities Act (other than a transaction exempt under Rule 144), the
rights of the Holder hereunder with respect to such Registrable Securities will
be assignable to the transferee of such Registrable Securities; provided,
however, that such transferee agrees in writing to be bound by all the terms and
conditions of this Exhibit C and the warrant.

                                      C-7

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