Document:

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                                                                    EXHIBIT 10.2

                        SUPERCONDUCTOR TECHNOLOGIES INC.

                             STOCK PURCHASE WARRANT

          THE WARRANT EVIDENCED HEREBY AND THE SHARES OF STOCK ISSUABLE
            UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE
               SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
          OFFERED OR SOLD WITHOUT REGISTRATION UNLESS AN EXEMPTION FROM
            REGISTRATION IS AVAILABLE UNDER SUCH ACT OR THE RULES OR
                       REGULATIONS PROMULGATED THEREUNDER

Expiration Date: June 25, 2008                                  Series H No. ___

                               WARRANT TO PURCHASE
                               ___________________
                             SHARES OF COMMON STOCK
                               AS DESCRIBED HEREIN

         This certifies that, for value received,______________________________,
or its successors and assigns ("Holder"), is entitled to purchase from
Superconductor Technologies Inc., a Delaware corporation (the "Company"), up to
and including ____________ fully paid and non-assessable shares (the "Number of
Shares") of the common stock, par value $0.001 per share, of the Company (the
"Common Stock") on the terms set forth herein at an exercise price of Two
Dollar(s) and Ninety Cents ($2.90) per share (the "Purchase Price"). The Number
of Shares and the Purchase Price may be adjusted from time to time as described
in this Warrant.

         1.       Exercise.

                  1.1      Time for Exercise. This Warrant may be exercised in
whole or in part at any time, and from time to time, during the period
commencing one hundred eighty-one (181) days from the date of this Warrant and
expiring on June 25, 2008, the fifth (5th) anniversary of the Closing Date.

                  1.2      Manner of Exercise. This Warrant shall be exercised
by delivering the attached exercise form duly completed and signed, specifying
(i) the number of shares as to which the Warrant is being exercised at that time
(the "Exercise Number"), and (ii) cash or a certified check in an amount equal
to the Exercise Number multiplied by the Purchase Price, and the Holder shall be
entitled to receive the full Exercise Number of shares of Common Stock. The
Holder hereof shall use its reasonable efforts to deliver simultaneously with,
or as soon as practicable after, the delivery of the attached exercise form and
cash or certified check (i) this Warrant or (ii) an affidavit that such Warrant
has been lost, stolen or destroyed.

                  1.3      Effect of Exercise. Promptly (but in any case within
two business days) after any exercise, the Company shall deliver to the Holder
(i) duly executed certificates in the

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name or names specified in the exercise notice representing the aggregate number
of shares issuable upon such exercise, and (ii) if this Warrant is exercised
only in part, a new Warrant of like tenor representing the balance of the Number
of Shares. Such certificates shall be deemed to have been issued, and the person
receiving them shall be deemed to be a holder of record of such shares, as of
the close of business on the date the actions required in Section 1.2 shall have
been completed or, if on that date the stock transfer books of the Company are
closed, as of the next business day on which the stock transfer books of the
Company are open. The Company shall, upon request of the Holder, use its best
efforts to deliver shares issuable upon exercise of this Warrant (the "Warrant
Shares") electronically through the Depository Trust Corporation or another
established clearing corporation performing similar functions

                  1.4      Net Issue Exercise.

                  1.4.1    In lieu of exercising this Warrant in the manner
provided above in Section 1.2, the Holder may elect to receive shares equal to
the value of this Warrant (or the portion thereof being canceled) by surrender
of this Warrant at the principal office of the Company together with notice of
such election on the exercise form appended hereto duly executed by such Holder
or such Holder's duly authorized attorney, in which event the Company shall
issue to holder a 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 the Holder.

                         Y = The number of shares of Common Stock purchasable
                         under this Warrant (at the date of such calculation).

                         A = The fair market value of one share of Common Stock
                         (at the date of such calculation).

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

                  1.4.2    For purposes of this Section 1.4, the fair market
value of one share of Common Stock on the date of calculation shall mean:

                           (A)      if the Company's Common Stock is traded on a
securities exchange or The Nasdaq Stock Market, the fair market value shall be
deemed to be the average of the closing prices over a thirty (30) day period
ending three days before the date of calculation; or

                           (B)      if the Company's Common Stock is actively
traded over-the-counter, the fair market value shall be deemed to be the average
of the closing bid or sales price (whichever is applicable) over the thirty (30)
day period ending three days before the date of calculation; or

                           (C)      if (A) and (B) are not applicable, the fair
market value shall be at the highest price per share which the Company could
obtain on the date of calculation from a willing buyer (not a current employee,
director or affiliate) for shares of Common Stock sold by the Company, from
authorized but unissued shares, as agreed by the Company and the Holder, unless
the Company is at such time subject to an acquisition as described in Section
4.2 below, in which case the fair market value per share of Common Stock shall
be deemed to be

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the value of the consideration per share received by the holders of such stock
pursuant to such acquisition.

                  1.5      Obligations Absolute and Unconditional. The Company's
obligations to issue and deliver Warrant Shares in accordance with the terms
hereof are absolute and unconditional, irrespective of any action or inaction by
the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other person
of any obligation to the Company or any violation or alleged violation of law by
the Holder or any other person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of Warrant Shares. Nothing herein shall limit a Holder's right
to pursue any other remedies available to it hereunder, at law or in equity
including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company's failure to timely deliver
certificates representing Warrant Shares as required pursuant to the terms
hereof.

         2.       Transfer of Warrants and Stock.

                  2.1      Transfer Restrictions. Except as provided in the
Registration Rights Agreement dated the date hereof, the sale or re-sale of this
Warrant and the Common Stock issuable upon exercise of this Warrant has not been
and is not being registered under the Securities Act of 1933, as amended
("Securities Act"), or any applicable state securities laws. Neither this
Warrant nor the securities issuable upon its exercise may be sold, transferred
except with respect to affiliates, pledged unless the Company shall have been
supplied with reasonably satisfactory evidence that such transfer is not in
violation of the Securities Act and any applicable state securities laws. The
Company shall place a legend to that effect on this Warrant, any replacement
Warrant and each certificate representing shares issuable upon exercise of this
Warrant.

                  2.2      Manner of Transfer. Upon delivery of this Warrant to
the Company with the attached assignment form duly completed and signed, the
Company will promptly (but in any case within five business days) execute and
deliver to each transferee and, if applicable, the Holder, Warrants of like
tenor evidencing the rights (i) of the transferee(s) to purchase the Number of
Shares specified for each in the assignment forms, and (ii) of the Holder to
purchase any untransferred portion, which in the aggregate shall equal the
Number of Shares of the original Warrant (such number to be adjusted as provided
in Section 4). The Company may decline to proceed with any partial transfer if
any new Warrant would represent the right to purchase fewer than one hundred
shares of Common Stock (such number to be adjusted as provided in Section 4). If
this Warrant is properly assigned in compliance with this Section 2, it may be
exercised by an assignee without having a new Warrant issued.

                  2.3      Loss, Destruction of Warrant Certificates. Upon
receipt of (i) evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of any Warrant and (ii) except in the case of
mutilation, an indemnity or security reasonably satisfactory to the Company (the
original Holder's or any other institutional Holder's indemnity agreed to be
satisfactory), the Company will promptly (but in any case within five business
days) execute and deliver a replacement Warrant of like tenor representing the
right to purchase the same Number of Shares.

         3.       Cost of Issuances. The Company shall pay all expenses,
transfer taxes and other charges payable in connection with the preparation,
issuance and delivery of stock certificates or replacement Warrants, except for
any transfer tax or other charge imposed as a

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result of (i) any issuance of stock certificates in any name other than the name
of the Holder upon exercise of the Warrant or (ii) any transfer of the Warrant.
The Company shall not be required to issue or deliver any stock certificate or
Warrant until it receives reasonably satisfactory evidence that any such tax or
other charge has been paid by the Holder.

         4.       Anti-Dilution Provisions. If any of the following events occur
at any time hereafter during the life of this Warrant, then the Purchase Price
and the Number of Shares immediately prior to such event shall be changed as
described in order to prevent dilution:

                  4.1      Stock Splits, Dividends and Reverse Splits. If at any
time the outstanding shares of Common Stock are subdivided into a greater number
of shares, or if additional shares are issued as a dividend on such Common
Stock, then the Purchase Price will be reduced proportionately and the Number of
Shares will be increased proportionately. Conversely, if at any time the
outstanding shares of Common Stock are consolidated into a smaller number of
shares, then the Purchase Price will be increased proportionately and the Number
of Shares will be reduced proportionately.

                  4.2      Effect of Merger, Reorganization and Asset Sales. If
any (i) reorganization or reclassification of the Common Stock, (ii)
consolidation or merger of the Company with or into another corporation, (iii)
sale of all or substantially all of its operating assets to another corporation,
or (iv) sale of the Company substantially as a going concern followed by a
liquidation of the Company (any such occurrence shall be an "Event"), is
effected in such a way that holders of Common Stock are entitled to receive
securities and/or assets as a result of their Common Stock ownership, then upon
exercise of this Warrant the Holder will have the right to receive the shares of
stock, securities or assets which they would have received if this Warrant had
been fully exercised as of the record date for such Event. The Company will not
effect any Event unless prior to or simultaneously with its consummation the
successor corporation resulting from the consolidation or merger (if other than
the Company), or the corporation purchasing the Company's assets or acquiring
the Company's stock, assumes the performance of the Company's obligations under
this Warrant (as appropriately adjusted to reflect such consolidation, merger or
sale such that the Holder's rights under this Warrant are, as nearly as
practicable, as set forth in the first sentence of this Section 4.2 but
otherwise, unchanged) by a binding written instrument.

                  4.3      Pro Rata Distributions. If the Company, at any time
while this Warrant is outstanding, distributes to holders of Common Stock (i)
evidences of its indebtedness, (ii) any security (other than a distribution of
Common Stock covered by Section 4.1 hereof), (iii) rights or warrants to
subscribe for or purchase any security of the Company, or (iv) any other asset
(in each case, "Distributed Property"), then in each such case the Company shall
give the Holder the notice specified in Section 4.4.2.

                  4.4      Notices.

                           4.4.1    Notice of Adjustments. When any adjustment
is required to be made under this Section 4, the Company shall promptly (i)
determine such adjustments, (ii) prepare and retain on file a statement
describing in reasonable detail the method used in arriving at the adjustment;
and (iii) cause a copy of such statement, together with any agreement required
by Section 4.2, to be mailed to the Holder within 10 days after the date on
which the circumstances giving rise to such adjustment occurred.

                           4.4.2    Notice of Events. If at any time (i) the
Company declares any dividends on the Common Stock, (ii) any Event is expected
to occur, or (iii) there is a voluntary or involuntary dissolution, liquidation
or winding up of the Company, then the Company shall

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give the Holder at least thirty (30) but not more than ninety (90) days written
notice of the date on which the books of the Company will close or upon which a
record will be taken with regard to such occurrence. Such notice will also
specify the date as of which the holders of the Common Stock will participate in
the dividend or will be entitled to exchange their shares for securities or
other property. The notice may state that the record date is subject to the
effectiveness of a registration statement under the Securities Act or to a
favorable vote or determination of shareholders or of any governmental agency.

                  4.5      Computations and Adjustments. Upon each computation
of an adjustment under this Section 4, the Purchase Price shall be computed to
the next lowest cent and the Number of Shares shall be calculated to the next
highest whole share. However, the fractional amount shall be used in calculating
any future adjustments. No fractional shares of Common Stock shall be issued in
connection with the exercise of this Warrant, but the Company shall, in the case
of the final exercise under this Warrant, make a cash payment for any fractional
shares based on the closing price on the date of exercise of a share of Common
Stock on the principal exchange or system on which the Common Stock is listed or
traded (the "Principal Exchange") (or, if not then listed or traded thereon, the
mean of the closing bid and asked prices on an automated quotation system, or,
if such quotations are not available, such value (determined without discount
for illiquidity or minority status) as may be determined in good faith by the
Company's Board of Directors, which determination shall be conclusively binding
on the parties). Notwithstanding any changes in the Purchase Price or the Number
of Shares, this Warrant, and any Warrants issued in replacement or upon transfer
thereof, may continue to state the initial Purchase Price and the initial Number
of Shares. Alternatively, the Company may elect to issue a new Warrant or
Warrants of like tenor for the additional shares of Common Stock purchasable
hereunder or, upon surrender of the existing Warrant, to issue a replacement
Warrant evidencing the aggregate Number of Shares to which the Holder is
entitled after such adjustments.

                  4.6      Exercise Before Payment Date. In the event that this
Warrant is exercised after the record date for any event requiring an
adjustment, but prior to the actual event, the Company may elect to defer
issuing to the Holder any payment or additional securities required by such
adjustment until the actual event occurs; provided, however, that the Company
shall deliver a "due bill" or other appropriate instrument to the Holder
transferable to the same extent as the Common Stock issuable on exercise
evidencing the Holder's right to receive such additional payment or securities
upon the occurrence of the event requiring such adjustment.

         5.       Covenants. The Company agrees that:

                  5.1      Reservation of Stock. During the period in which this
Warrant may be exercised, the Company will reserve sufficient authorized but
unissued securities (and, if applicable, property) to enable it to satisfy its
obligations on exercise of this Warrant. If at any time the Company's authorized
securities shall not be sufficient to allow the exercise of this Warrant, the
Company shall take such corporate action as may be necessary to increase its
authorized but unissued securities to be sufficient for such purpose;

                  5.2      No Liens, etc. All securities that may be issued upon
exercise of this Warrant will, upon issuance, be validly issued, fully paid,
non-assessable and free from all taxes, liens and charges with respect to the
issue thereof, and shall be listed on any exchanges or authorized for trading on
any automated systems on which that class of securities is listed or authorized
for trading;

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                  5.3      No Diminution of Value. The Company will not take any
action to terminate this Warrant or to diminish it in value;

                  5.4      Furnish Information. The Company will promptly
deliver to the Holder copies of all financial statements, reports, proxy
statements and other information which the Company shall have sent to its
shareholders generally; and

                  5.5      Stock and Warrant Transfer Books. Except upon
dissolution, liquidation or winding up or for ordinary holidays and weekends,
the Company will not at any time close its stock or warrant transfer books so as
to result in preventing or delaying the exercise or transfer of this Warrant.

         6.       Redemption.

                  6.1      If, at any time after the date which is thirty (30)
months following the effective date of the Company's registration statement
registering the Common Stock issuable upon exercise of the Warrants and provided
all of the shares of Common Stock issuable hereunder either (i) are registered
pursuant to an effective Registration Statement (as defined in the Registration
Rights Agreement) which is available for sales of such shares of Common Stock or
(ii) no longer constitute Registrable Securities (as defined in the Registration
Rights Agreement), then upon thirty (30) days prior written notice (the "Notice
Period") to the Warrantholder, the Warrants may be redeemed, at the option of
the Company, at $0.10 per Warrant provided the market price of the Common Stock
shall exceed Eight Dollar(s) ($8.00). Market price for the purpose of this
Section 6.1 shall mean the average closing bid price of the Common Stock for ten
(10) consecutive trading days as reported by the Principal Exchange. All
Warrants must be redeemed if any are redeemed.

                  6.2      In case the Company shall exercise its right to
redeem, it shall mail a notice of redemption to Holders of the Warrants to be
redeemed, first class, postage prepaid, not later than the thirtieth day before
the date fixed for redemption, at their last address. Any notice mailed in the
manner provided herein shall be conclusively presumed to have been duly given
whether or not the Holder receives such notice.

                  6.3      The notice of redemption shall specify the redemption
price, date fixed for redemption, the place where the Warrant shall be delivered
and the redemption price shall be paid, and that the right to exercise the
Warrant shall terminate at 5:00 P.M. (Pacific time) on the business day
immediately preceding the date fixed for redemption. The date fixed for the
redemption of the Warrants shall be the Redemption Date.

                  6.4      Any right to exercise a Warrant shall terminate at
5:00 P.M. (Pacific time) on the business day immediately preceding the
Redemption Date. On and after the Redemption Date, Holders of the Warrants shall
have no further rights except to receive, upon surrender of the Warrant, the
redemption price of $0.10 per Warrant.

         7.       General Provisions.

                  7.1      Complete Agreement; Modifications. This Warrant and
any documents referred to herein or executed contemporaneously herewith
constitute the parties' entire agreement with respect to the subject matter
hereof and supersede all agreements, representations, warranties, statements,
promises and understandings, whether oral or written, with respect to the
subject matter hereof. This Warrant may not be amended, altered or modified
except by a writing signed by the parties.

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                  7.2      Notices. Any notices required or permitted to be
given under the terms of this Agreement shall be sent by certified or registered
mail (return receipt requested) or delivered personally or by courier (including
a recognized overnight delivery service) or by facsimile and shall be effective
five days after being placed in the mail, if mailed by regular United States
mail, or upon receipt, if delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile, in each case addressed
to a party. The addresses for such communications shall be:

                  If to the Company:

                           Superconductor Technologies Inc.
                           460 Ward Drive
                           Santa Barbara, California 93111-2310
                           Attention: President and Chief Executive Officer
                           Facsimile: (805) 683-9496
                           Telephone: (805) 690-4500

                  With copy to:

                           Guth|Christopher LLP
                           10866 Wilshire Boulevard
                           Suite 1250
                           Los Angeles, California 90024
                           Attention: Daniel G. Christopher, Esq.
                           Facsimile: (310) 470-8354
                           Telephone: (310) 474-8809

         If to a Holder: To the address set forth immediately next to such
Holder's name on the signature pages to the Securities Purchase Agreement.

         Each party shall provide notice to the other party of any change in
address.

                  7.3      No Third-Party Benefits; Successors and Assigns. None
of the provisions of this Warrant shall be for the benefit of, or enforceable
by, any third-party beneficiary. Except as provided herein to the contrary, this
Warrant shall be binding upon and inure to the benefit of the parties, their
respective successors and permitted assigns. The Holder may assign its rights
and obligations under this Warrant to any third party if done so in compliance
with the requirements of Section 2. The Company may only assign its rights and
obligations of this Warrant in connection with a merger, consolidation or sale
of substantially all of its operating assets to the extent expressly permitted
by, and in compliance with all of the requirements of, Section 4.2.

                  7.4      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed in the State of Delaware (without regard to
principles of conflict of laws). Both parties irrevocably consent to the
exclusive jurisdiction of the United States federal courts and the state courts
located in Delaware with respect to any suit or proceeding based on or arising
under this Agreement, the agreements entered into in connection herewith or the
transactions contemplated hereby or thereby and irrevocably agree that all
claims in respect of such suit or proceeding may be determined in such courts.
The Company and each Purchaser irrevocably waives the defense of an inconvenient
forum to the maintenance of such suit or proceeding. The Company and each
Purchaser further agrees that service of process upon a party mailed

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by first class mail shall be deemed in every respect effective service of
process upon the party in any such suit or proceeding. Nothing herein shall
affect either party's right to serve process in any other manner permitted by
law. Each of the parties agrees that a final non-appealable judgment in any such
suit or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on such judgment or in any other lawful manner.

                  7.5      Waivers Strictly Construed. With regard to any power,
remedy or right provided herein or otherwise available to any party hereunder
(i) no waiver or extension of time shall be effective unless expressly contained
in a writing signed by the waiving party, and (ii) no alteration, modification
or impairment shall be implied by reason of any previous waiver, extension of
time, delay or omission in exercise, or other indulgence.

                  7.6      Severability. The validity, legality or
enforceability of the remainder of this Warrant shall not be affected even if
one or more of its provisions shall be held to be invalid, illegal or
unenforceable in any respect.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed effective as of June 25, 2003.

                                   SUPERCONDUCTOR TECHNOLOGIES INC.

                                   By:__________________________________________

                                   Name: M. Peter Thomas

                                   Title: President and Chief Executive Officer

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                                 ASSIGNMENT FORM

                    (To Be Executed Upon Transfer of Warrant)

         FOR VALUE RECEIVED, ______________________________ hereby sells,
assigns and transfers to the transferee named below the rights to purchase ___
of the Number of Shares under this Warrant, together with all rights, title and
interest therein. The rights to purchase the remaining Number of Shares shall
remain the property of the undersigned. This includes a transfer of the
registration rights.

                                               [NAME OF HOLDER]

Dated:____________                             By:______________________________
                                                         Signature

                                               Name:____________________________
                                                           (Please Print)

                                               Title:___________________________

                                               Address:_________________________

                                                       _________________________

                                                       _________________________

                                               Employer Identification Number,
                                               Social Security Number or other
                                               identifying number:______________

TRANSFEREE:

Name:_____________________________________
                (Please Print)

Address:__________________________________

        __________________________________

        __________________________________

Employer Identification Number,
Social Security Number or other
identifying number:_______________________

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                                  EXERCISE FORM

                    (To Be Executed Upon Exercise of Warrant)

         The undersigned hereby exercises the Warrant with regard to
_____________ shares of Common Stock and herewith [makes payment of the purchase
price in full] [OR] [requests that the Company exchange the Warrant for shares
of Common Stock as provided in Section 1.4 of the Warrant]. The undersigned
requests that the certificate(s) for such shares and the Warrant for the
unexercised portion of this Warrant be issued to the Holder.

                                               [NAME OF HOLDER]

Dated:____________                             By:______________________________
                                                         Signature
______
                                               Name:____________________________
                                                           (Please Print)

                                               Title:___________________________

                                               Address:_________________________

                                                       _________________________

                                                       _________________________

                                               Employer Identification Number,
                                               Social Security Number or other
                                               identifying number:______________

TRANSFEREE:

Name:_____________________________________
                (Please Print)

Address:__________________________________

        __________________________________

        __________________________________

Employer Identification Number,
Social Security Number or other
identifying number:_______________________

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                                                                    EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

         This REGISTRATION RIGHTS AGREEMENT is made and entered into as of June
25, 2003 between the investor or investors signatory hereto (each an "Investor"
and together the "Investors") and Superconductor Technologies Inc., a Delaware
corporation (the "Company") with reference to the following facts:

         A.       Simultaneously with the execution and delivery of this
Agreement, the Investors are purchasing from the Company, pursuant to a
Securities Purchase Agreement dated the date hereof (the "Purchase Agreement"),
up to (i) an aggregate of 5,032,989 shares (the "Shares") of the Company's
common stock, par value $0.001 per share ("Common Stock"), and stock purchase
warrants ("Warrants") to purchase up to 1,258,247 additional shares of Common
Stock (the "Warrant Shares") (terms not defined herein shall have the meanings
ascribed to them in the Purchase Agreement).

         B.       The Company desires to grant to the Investors the registration
rights set forth herein with respect to the Shares and the Warrant Shares
(hereinafter collectively referred to as the "Stock" or "Securities" of the
Company).

         NOW, THEREFORE, the parties hereto mutually agree as follows:

         1.       Registrable Securities. As used herein the term "Registrable
Securities" means the Securities until (i) the Registration Statement (as
defined below in Section 3.1) has been declared effective by the Commission, and
all Securities have been disposed of pursuant to the Registration Statement,
(ii) all Securities have been sold under circumstances under which all of the
applicable conditions of Rule 144 ("Rule 144") (or any similar provision then in
force) under the Securities Act of 1933, as amended (the "Securities Act") are
met, (iii) all Securities have been otherwise transferred to holders who may
trade such Securities without restriction under the Securities Act, and the
Company has delivered a new certificate or other evidence of ownership for such
Securities not bearing a restrictive legend or (iv) such time as, in the opinion
of counsel to the Company, all Securities may be sold without any time, volume
or manner limitations pursuant to Rule 144(k) (or any similar provision then in
effect) under the Securities Act. In the event of any merger, reorganization,
consolidation, recapitalization or other change in corporate structure affecting
the Common Stock, such adjustment shall be deemed to be made in the definition
of "Registrable Securities" as is appropriate in order to prevent any dilution
or enlargement of the rights granted pursuant to this Agreement.

         2.       Restrictions on Transfer. Each Investor acknowledges and
understands that prior to the registration of the Securities as provided herein,
the Securities are "restricted securities" as defined in Rule 144 promulgated
under the Securities Act. Each Investor understands that no disposition or
transfer of the Securities may be made by Investor other than in compliance with
Section 2.7 of the Purchase Agreement.

         With a view to making available to the Investors the benefits of Rule
144 promulgated under the Securities Act or any other similar rule or regulation
of the Commission that may at any time permit the Investors to sell securities
of the Company to the public without registration ("Rule 144"), the Company
agrees to:

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                  (a) comply with the provisions of paragraph (c)(1) of Rule
144; and

                  (b) file with the Commission in a timely manner all reports
and other documents required to be filed with the Commission pursuant to Section
13 or 15(d) under the Exchange Act by companies subject to either of such
sections, irrespective of whether the Company is then subject to such reporting
requirements.

         3.       Registration Rights With Respect to the Securities.

                  3.1      The Company agrees that it will prepare and file with
the Securities and Exchange Commission ("Commission"), within five (5) days
after the Closing Date a registration statement on Form S-3 under the Securities
Act (the "Registration Statement"), at the sole expense of the Company (except
as provided in Section 3.3 hereof), in respect of the Investors, so as to permit
a public offering and resale of the Securities under the Securities Act by the
Investors as selling stockholders and not as underwriters. The Registration
Statement shall contain the "Plan of Distribution" attached hereto as Exhibit A.
The Company shall use its best efforts to cause such Registration Statement to
become effective within seventy-five (75) days of the Closing Date. The number
of shares designated in the Registration Statement to be registered shall
include the Shares and Warrant Shares. The Company will notify the Investors of
the effectiveness of the Registration Statement within one (1) trading day of
the date of such effectiveness.

                  3.2      The Company will maintain the Registration Statement
or post-effective amendment filed under this Section 3 effective under the
Securities Act until the earliest of (i) the date on which none of the
Securities covered by such Registration Statement are or may become issued and
outstanding, (ii) the date on which all of the Securities have been sold
pursuant to such Registration Statement, (iii) the date on which the Investors
receive an opinion of counsel to the Company that all the Securities may be sold
without any time, volume or manner limitations pursuant to Rule 144(k) or any
similar provision then in effect under the Securities Act, and (iv) the date on
which all Securities have been otherwise transferred to persons who may trade
such shares without restriction under the Securities Act, and the Company has
delivered a new certificate or other evidence of ownership for such securities
not bearing a restrictive legend (the "Effectiveness Period").

                  3.3      All fees, disbursements and out-of-pocket expenses
and costs incurred by the Company in connection with the preparation and filing
of the Registration Statement under subparagraph 3.1 and in complying with
applicable securities and Blue Sky laws (including, without limitation, all
attorneys' fees of the Company) shall be borne by the Company. The Investors
shall bear the cost of underwriting and/or brokerage discounts, fees and
commissions, if any, applicable to the resale of the Securities being registered
and the fees and expenses of their counsel. Counsel for the Investors shall have
a reasonable period, not to exceed five (5) days, to review the proposed
Registration Statement or any amendment thereto, prior to filing with the
Commission, and the Company shall upon request provide each Investor with copies
of any comment letters received from the Commission with respect thereto within
two (2) trading days of receipt thereof. The Company shall qualify any of the
Securities for sale in such states as any Investor reasonably designates and
shall furnish indemnification in the manner provided in Section 6 hereof.
However, the Company shall not be required to qualify in any state which will
require an escrow or other restriction relating to the Company and/or the
sellers, or which will require the Company to qualify to do business in such
state or require the Company to file therein any general consent to service of
process. The Company at its expense will supply the Investors with copies of the
applicable Registration Statement and the prospectus included therein and other
related documents in such quantities as may be reasonably requested by the
Investors.

                                      B-13

<PAGE>

                  3.4      In the event that the Registration Statement to be
filed by the Company pursuant to Section 3.1 above is not filed within five (5)
days of the Closing Date or is not declared effective by the Commission within
seventy-five (75) days from the Closing Date (each a "Registration Default"),
then the Company will pay each Investor as liquidated damages for any such
failure and not as a penalty 0.1428% of the Purchase Price for each day on which
any such Registration Default is continuing (the "Daily Liquidated Damages
Amount").

                  3.5      No provision contained herein shall preclude the
Company from selling securities pursuant to any Registration Statement in which
it is required to include Securities pursuant to this Section 3.

                  3.6      If at any time or from time to time after the
effective date of any Registration Statement, the Company notifies the Investors
in writing of (i) of any request by the Commission or any other federal or state
governmental authority during the Effectiveness Period for amendments or
supplements to the Registration Statement or related prospectus or for
additional information; (ii) of the issuance by the Commission or any other
federal or state governmental authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings
for that purpose; (iii) of the receipt by the Company of any notification with
respect to the suspension of the qualification (or exemption from qualification)
of any of the Securities for sale in any jurisdiction in which they have been
qualified for sale or the initiation of any proceeding for such purpose; or (iv)
of any event or circumstance which necessitates the making of any changes in the
Registration Statement or prospectus, or any document incorporated or deemed to
be incorporated therein by reference, so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and that in the case of the
prospectus, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading (each, a "Suspension Event"), the Investors shall not
offer or sell any Securities or engage in any other transaction involving or
relating to Securities, from the time of the giving of notice with respect to a
Suspension Event until the Investors receive written notice from the Company
that the current prospectus may be used, and received copies of any additional
or supplemental filings that are incorporated or deemed incorporated by
reference in any such prospectus. Any notification by the Company of a
Suspension Event pursuant to the first sentence of this Section 3.6 shall not
include any information that constitutes or might constitute material, nonpublic
information (other than the existence of a Suspension Event) without the prior
written consent of the Investor so notified.

                  3.7      If one or more Suspension Events is in effect for a
cumulative period of not more than 30 days in any consecutive twelve-month
period during the Effectiveness Period (a "Suspension Default"), then the
Company will pay each Investor as liquidated damages for each such day in excess
of such 30 days an amount equal to the Daily Liquidated Damages Amount.

                  3.8      Notwithstanding the provisions of this Section 3 to
the contrary, the aggregate amount of liquidated damages payable by the Company
to Investors under this Section 3 shall not exceed ten percent (10%) of the
Purchase Price. Liquidated damages for any Registration Default or Suspension
Default shall be made to the Investors in cash, within five (5) calendar days of
demand; provided, however, that the payment of such liquidated damages shall not
relieve the Company from any of its obligations hereunder. If the Company does
not remit the payment to the Investors as set forth above, the Company will pay
the Investors reasonable costs of collection, including attorneys' fees, in
addition to the liquidated

                                      B-14

<PAGE>

damages. The registration of the Securities pursuant to this provision shall not
affect or limit the Investors' other rights or remedies as set forth in this
Agreement.

         4.       Cooperation. The Investors will use reasonable efforts to
cooperate with the Company in all respects in connection with this Agreement,
including timely supplying all information and confirmations reasonably
requested by the Company or the Commission (which shall include all information
regarding the Investors and proposed manner of sale of the Registrable
Securities required to be disclosed in any Registration Statement) and executing
and returning all documents reasonably requested in connection with the
registration and sale of the Registrable Securities and entering into and
performing their obligations under any underwriting agreement, if the offering
is an underwritten offering, in usual and customary form, with the managing
underwriter or underwriters of such underwritten offering. Nothing in this
Agreement shall obligate any Investor to consent to be named as an underwriter
in any Registration Statement. The obligation of the Company to register the
Registrable Securities shall be absolute and unconditional as to those
Securities which the Commission will permit to be registered without naming the
Investors as underwriters. Any delay or delays caused by the Investors by
failure to cooperate as required hereunder shall not constitute a Registration
Default or Suspension Default.

         The Company will use reasonable efforts to cooperate with the Investors
(i) to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be delivered to a transferee pursuant to
a Registration Statement, which certificates shall be free, to the extent
permitted by this Agreement and consistent with applicable law, of all
restrictive legends, and to enable such Registrable Securities to be in such
denominations and registered in such names as any such Investor may request,
(ii) to facilitate any due diligence investigation undertaken by the Investors
in connection with the sale of Registrable Securities, including without
limitation by making available any documents and information; provided no
Investor will request material nonpublic information unless it acknowledges in
advance in writing that it is doing so, and that the Company will not deliver or
make available to any Investor material, nonpublic information unless such
Investor specifically so requests in writing.

         5.       Registration Procedures. If and whenever the Company is
required by any of the provisions of this Agreement to effect the registration
of any of the Registrable Securities under the Act, the Company shall (except as
otherwise provided in this Agreement), as expeditiously as possible, subject to
the Investors' assistance and cooperation as reasonably required with respect to
each Registration Statement:

                  5.1      (a) prepare and file with the Commission such
amendments and supplements to the Registration Statement and the prospectus used
in connection therewith as may be necessary to keep such Registration Statement
effective 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 whenever the Investors shall desire to sell or otherwise dispose of
the same (including prospectus supplements with respect to the sales of
securities from time to time in connection with a registration statement
pursuant to Rule 415 promulgated under the Securities Act) and (b) take all
lawful action such that each of (A) the Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (B) the prospectus
forming part of the Registration Statement, and any amendment or supplement
thereto, does not at any time during the Effectiveness Period include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

                                      B-15

<PAGE>

                  5.2      (a) prior to the filing with the Commission of any
Registration Statement (including any amendments thereto) and the distribution
or delivery of any prospectus (including any supplements thereto), provide draft
copies thereof to the Investors as required by Section 3.3 and reflect in such
documents all such comments as the Investors (and their counsel) reasonably may
propose respecting the Selling Shareholders and Plan of Distribution sections
(or equivalents) and (b) furnish to each Investor such numbers of copies of a
prospectus including a preliminary prospectus or any amendment or supplement to
any prospectus, as applicable, in conformity with the requirements of the
Securities Act, and such other documents, as such Investor may reasonably
request in order to facilitate the public sale or other disposition of the
securities owned by such Investor;

                  5.3      register and qualify the Registrable Securities
covered by the Registration Statement under such other securities or blue sky
laws of such jurisdictions as the Investors shall reasonably request (subject to
the limitations set forth in Section 3.3 above), and do any and all other acts
and things which may be necessary or advisable to enable each Investor to
consummate the public sale or other disposition in such jurisdiction of the
securities owned by such Investor;

                  5.4      list such Registrable Securities on the principal
exchange or market on which the Common Stock is then traded, if the listing of
such Registrable Securities is then permitted under the rules of such principal
exchange or market;

                  5.5      notify each Investor of a Suspension Event as soon as
possible, use its best efforts to prepare and file a curative amendment under
Section 5.1 and take all other lawful curative action;

                  5.6      cooperate with the Investors to facilitate the timely
preparation and delivery of certificates for the Registrable Securities to be
offered pursuant to the Registration Statement and enable such certificates for
the Registrable Securities to be in such denominations or amounts, as the case
may be, as the Investors reasonably may request and registered in such names as
the Investors may request; and, within five (5) trading days after a
Registration Statement which includes Registrable Securities is declared
effective by the Commission, deliver and cause legal counsel selected by the
Company to deliver to the transfer agent for the Registrable Securities (with
copies to the Investors) an appropriate instruction and, to the extent
necessary, an opinion of such counsel;

                  5.7      take all such other lawful actions reasonably
necessary to expedite and facilitate the disposition by the Investors of their
Registrable Securities in accordance with the intended methods therefor provided
in the prospectus which are customary for issuers to perform under the
circumstances;

                  5.8      in the event of an underwritten offering, promptly
include or incorporate in a prospectus supplement or post-effective amendment to
the Registration Statement such information as the managers reasonably agree
should be included therein and to which the Company does not reasonably object
and make all required filings of such prospectus supplement or post-effective
amendment as soon as practicable after it is notified of the matters to be
included or incorporated in such prospectus supplement or post-effective
amendment; and

                  5.9      maintain a transfer agent and registrar for its
Common Stock.

                                      B-16

<PAGE>

         6.       Indemnification.

                  6.1      To the maximum extent permitted by law, the Company
agrees to indemnify and hold harmless the Investors and each person, if any, who
controls an Investor within the meaning of the Securities Act (each a
"Distributing Investor") against any losses, claims, damages or liabilities,
joint or several (which shall, for all purposes of this Agreement, include, but
not be limited to, all reasonable costs of defense and investigation and all
reasonable attorneys' fees and expenses), to which the Distributing Investor may
become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (a) any untrue statement or alleged untrue statement of any
material fact contained in any Registration Statement, including any amendment
thereto, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or (b) any untrue statement or alleged untrue statement of any
material fact contained in any final prospectus, including any amendment or
supplement thereto, or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, however, that the Company will not be liable in any such
case to the extent, and only to the extent, that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such Registration Statement,
final prospectus or, in each case, any amendment or supplement thereto in
reliance upon, and in conformity with, written information furnished to the
Company by the Distributing Investor, its counsel, affiliates or any
underwriter, specifically for use in the preparation thereof. This indemnity
agreement will be in addition to any liability which the Company may otherwise
have.

                  6.2      To the maximum extent permitted by law, each
Distributing Investor agrees that it will indemnify and hold harmless the
Company, and each officer and director of the Company or person, if any, who
controls the Company within the meaning of the Securities Act, against any
losses, claims, damages or liabilities (which shall, for all purposes of this
Agreement, include, but not be limited to, all reasonable costs of defense and
investigation and all reasonable attorneys' fees and expenses) to which the
Company or any such officer, director or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
(a) any untrue statement or alleged untrue statement of any material fact
contained in any Registration Statement, including any amendment thereto, or the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
(b) any untrue statement or alleged untrue statement of any material fact
contained in any final prospectus, including any amendment or supplement
thereto, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, but,
in each case, only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in such Registration
Statement, final prospectus or amendment or supplement thereto in reliance upon,
and in conformity with, written information furnished to the Company by such
Distributing Investor, its counsel, affiliates or any underwriter, specifically
for use in the preparation thereof. In no event shall the liability of an
Investor be greater in amount than the dollar amount of the proceeds (net of all
expenses paid by such Investor and the amount of any damages such holder has
otherwise been required to pay by reason of such untrue statement or omission)
received by such Investor upon the sale of the Securities included in the
Registration Statement giving rise to such indemnification obligation. This
indemnity agreement will be in addition to any liability which the Distributing
Investor may otherwise have.

                                      B-17

<PAGE>

                  6.3      Promptly after receipt by an indemnified party under
this Section 6 of notice of the commencement of any action against such
indemnified party, such indemnified party will, if a claim in respect thereof is
to be made against the indemnifying party under this Section 6, notify the
indemnifying party in writing of the commencement thereof; but the omission to
so notify the indemnifying party will not relieve the indemnifying party from
any liability which it may have to any indemnified party except to the extent
the failure of the indemnified party to provide such written notification
actually prejudices the ability of the indemnifying party to defend such action.
In case any such action is brought against any indemnified party, and it
notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate in, and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, assume the defense
thereof, subject to the provisions herein stated and after notice from the
indemnifying party to such indemnified party of its election so to assume the
defense thereof, the indemnifying party will not be liable to such indemnified
party under this Section 6 for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation, unless the indemnifying party shall not
pursue the action to its final conclusion. The indemnified parties as a group
shall have the right to employ one separate counsel in any such action and to
participate in the defense thereof, but the fees and expenses of such counsel
shall not be at the expense of the indemnifying party if the indemnifying party
has assumed the defense of the action with counsel reasonably satisfactory to
the indemnified party unless (i) the employment of such counsel has been
specifically authorized in writing by the indemnifying party, or (ii) the named
parties to any such action (including any impleaded parties) include both the
indemnified party and the indemnifying party and the indemnified party shall
have been advised by its counsel that there may be one or more legal defenses
available to the indemnifying party different from or in conflict with any legal
defenses which may be available to the indemnified party or any other
indemnified party (in which case the indemnifying party shall not have the right
to assume the defense of such action on behalf of such indemnified party, it
being understood, however, that the indemnifying party shall, in connection with
any one such action or separate but substantially similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances, be liable only for the reasonable fees and expenses of one
separate firm of attorneys for the indemnified party, which firm shall be
designated in writing by the indemnified party). No settlement of any action
against an indemnified party shall be made without the prior written consent of
the indemnified party, which consent shall not be unreasonably withheld so long
as such settlement includes a full release of claims against the indemnified
party.

         7.       Contribution. In order to provide for just and equitable
contribution under the Securities Act in any case in which (i) the indemnified
party makes a claim for indemnification pursuant to Section 6 hereof but is
judicially determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that the express provisions of Section 6 hereof provide
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any indemnified party, then the Company and the
applicable Distributing Investor shall contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject (which shall, for
all purposes of this Agreement, include, but not be limited to, all reasonable
costs of defense and investigation and all reasonable attorneys' fees and
expenses), in either such case (after contribution from others) on the basis of
relative fault as well as any other relevant equitable considerations. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company on the one hand or the applicable Distributing Investor on the other
hand, and the parties' relative

                                      B-18

<PAGE>

intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company and the Distributing Investor agree that
it would not be just and equitable if contribution pursuant to this Section 7
were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in this
Section 7. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred
to above in this Section 7 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. 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 misrepresentation.

         Notwithstanding any other provision of this Section 7, in no event
shall any (i) Investor be required to undertake liability to any person under
this Section 7 for any amounts in excess of the dollar amount of the proceeds
received by such Investor from the sale of such Investor's Registrable
Securities (after deducting any fees, discounts and commissions applicable
thereto) pursuant to any Registration Statement under which such Registrable
Securities are registered under the Securities Act.

         8.       Notices. All notices, demands, requests, consents, approvals,
and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) hand delivered, (ii)
deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by facsimile, addressed as set forth in the
Purchase Agreement or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated in the
Purchase Agreement (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the first business day following
the date of sending by reputable courier service, fully prepaid, addressed to
such address, or (c) upon actual receipt of such mailing, if mailed. Either
party hereto may from time to time change its address or facsimile number for
notices under this Section 8 by giving at least ten (10) days' prior written
notice of such changed address or facsimile number to the other party hereto.

         9.       Assignment. This Agreement is binding upon and inures to the
benefit of the parties hereto and their respective heirs, successors and
permitted assigns. The rights granted the Investors under this Agreement may be
assigned to any purchaser of any Registrable Securities (or the rights thereto)
from an Investor, as otherwise permitted by the Purchase Agreement.

         10.      Determinations. Except as otherwise expressly provided herein,
all consents, approvals and other determinations to be made by the Investors
pursuant to this Agreement and all waivers and amendments to or of any
provisions in this Agreement to be binding upon an Investor shall be made by
such Investor.

         11.      Counterparts/Facsimile. This Agreement may be executed in two
or more counterparts, each of which shall constitute an original, but all of
which, when together shall constitute but one and the same instrument, and shall
become effective when one or more counterparts have been signed by each party
hereto and delivered to the other parties. In lieu

                                      B-19

<PAGE>

of the original, a facsimile transmission or copy of the original shall be as
effective and enforceable as the original.

         12.      Remedies. The remedies provided in this Agreement are
cumulative and not exclusive of any remedies provided by law. If any term,
provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction.

         13.      Conflicting Agreements. The Company shall not enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the holders of Registrable Securities in this Agreement or otherwise
prevents the Company from complying with all of its obligations hereunder.

         14.      Headings. The headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

         15.      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed in the State of Delaware (without regard to
principles of conflict of laws). Both parties irrevocably consent to the
exclusive jurisdiction of the United States federal courts and the state courts
located in Delaware with respect to any suit or proceeding based on or arising
under this Agreement, the agreements entered into in connection herewith or the
transactions contemplated hereby or thereby and irrevocably agree that all
claims in respect of such suit or proceeding may be determined in such courts.
The Company and each Purchaser irrevocably waive the defense of an inconvenient
forum to the maintenance of such suit or proceeding. The Company and each
Purchaser further agree that service of process upon a party mailed by first
class mail shall be deemed in every respect effective service of process upon
the party in any such suit or proceeding. Nothing herein shall affect either
party's right to serve process in any other manner permitted by law. Each of the
parties agrees that a final non-appealable judgment in any such suit or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on such judgment or in any other lawful manner.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      B-20

<PAGE>

                 Signature Page to Registration Rights Agreement

         IN WITNESS WHEREOF, the undersigned Investors and the Company have
caused this Agreement to be duly executed as of the date first above written.

                                      "COMPANY"

                                      SUPERCONDUCTOR TECHNOLOGIES INC.

                                      By:______________________________
                                          M. Peter Thomas
                                          President and Chief Executive Officer

                                      "INVESTORS"

RESIDENCE:___________                 INSERT INVESTORS

Investment Amount:___________
Common Shares:_______________
Warrant Shares:______________

Address for Notice:

                                      S-1

<PAGE>

                                    EXHIBIT A

                              Plan of Distribution

         The selling stockholders may, from time to time, sell any or all of
their shares of common stock on any stock exchange, market or trading facility
on which the shares are traded or in private transactions. These sales may be at
fixed or negotiated prices. The selling stockholders may use any one or more of
the following methods when selling shares:

         -        ordinary brokerage transactions and transactions in which the
                  broker-dealer solicits purchasers;

         -        block trades in which the broker-dealer will attempt to sell
                  the shares as agent but may position and resell a portion of
                  the block as principal to facilitate the transaction;

         -        purchases by a broker-dealer as principal and resale by the
                  broker-dealer for its account;

         -        an exchange distribution in accordance with the rules of the
                  applicable exchange;

         -        privately negotiated transactions;

         -        short sales;

         -        broker-dealers may agree with the selling stockholders to sell
                  a specified number of such shares at a stipulated price per
                  share;

         -        a combination of any such methods of sale; and

         -        any other method permitted pursuant to applicable law.

         The selling stockholders may also sell shares under Rule 144 under the
Securities Act, if available, rather than under this prospectus.

         The selling stockholders may also engage in short sales against the
box, puts and calls and other transactions in our securities or derivatives of
our securities and may sell or deliver shares in connection with these trades.

         Broker-dealers engaged by the selling stockholders may arrange for
other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the selling stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The selling stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved. Any
profits on the resale of shares of common stock by a broker-dealer acting as
principal might be deemed to be underwriting discounts or commissions under the
Securities Act. Discounts, concessions, commissions and similar selling
expenses, if any, attributable to the sale of shares will be borne by a selling
stockholder. The selling stockholders may agree to indemnify any agent, dealer
or broker-dealer that participates in transactions involving sales of the shares
if liabilities are imposed on that person under the Securities Act.

         The selling stockholders may from time to time pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock from
time to time under this prospectus after we have filed an amendment to this
prospectus under Rule 424(b)(3) or other applicable provision of the Securities
Act of 1933 amending the list of selling stockholders to include the pledgee,
transferee or other successors in interest as selling stockholders under this
prospectus.

                                        2
<PAGE>

         The selling stockholders also may transfer the shares of common stock
in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of
this prospectus and may sell the shares of common stock from time to time under
this prospectus after we have filed an amendment to this prospectus under Rule
424(b)(3) or other applicable provision of the Securities Act of 1933 amending
the list of selling stockholders to include the pledgee, transferee or other
successors in interest as selling stockholders under this prospectus.

         The selling stockholders and any broker-dealers or agents that are
involved in selling the shares of common stock may be deemed to be
"underwriters" within the meaning of the Securities Act in connection with such
sales. In such event, any commissions received by such broker-dealers or agents
and any profit on the resale of the shares of common stock purchased by them may
be deemed to be underwriting commissions or discounts under the Securities Act.

         We are required to pay all fees and expenses incident to the
registration of the shares of common stock[, including $ of fees and
disbursements of counsel to the selling stockholders]. We have agreed to
indemnify the selling stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

         The selling stockholders have advised us that they have not entered
into any agreements, understandings or arrangements with any underwriters or
broker-dealers regarding the sale of their shares of common stock, nor is there
an underwriter or coordinating broker acting in connection with a proposed sale
of shares of common stock by any selling stockholder. If we are notified by any
selling stockholder that any material arrangement has been entered into with a
broker-dealer for the sale of shares of common stock, if required, we will file
a supplement to this prospectus. If the selling stockholders use this prospectus
for any sale of the shares of common stock, they will be subject to the
prospectus delivery requirements of the Securities Act.

         The anti-manipulation rules of Regulation M under the Securities
Exchange Act of 1934 may apply to sales of our common stock and activities of
the selling stockholders.

                                       3

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