Document:

STOCK PURCHASE AGREEMENT

      This STOCK PURCHASE AGREEMENT (the "Agreement") dated as of October 4,
2000 between NATHAN Z. BISTRICER ("Seller"), and PHIBRO-TECH, INC., a Delaware
corporation ("Purchaser") is made with reference to the following facts.

      A. Seller is the owner of 71.67 shares (the "Shares") of the Purchaser's
Class B Common Stock, par value $.01 per share, and is one of the Management
Stockholders party to that certain Stockholders Agreement dated as of February
21, 1995, as amended (the "Stockholders Agreement"), among the Purchaser and
such Management stockholders;

      B. An Actual or Constructive Termination (as defined in the Stockholders
Agreement) of the Seller's employment with the Company has occurred, and the
Purchaser is obligated to purchase the Shares pursuant to and in accordance with
the Stockholders Agreement; and

      C. Seller desires to sell to Purchaser, and Purchaser desires to buy from
Seller, the Shares upon the terms and conditions set forth in this Agreement.

      The parties agree as follows:

      1. Sale and Purchase. On the Closing Date (as defined below), Seller shall
sell, assign, transfer, convey and set over to Purchaser, all of Seller's right,
title, and interest in the Shares for a purchase price equal to $855,000.00
("Purchase Price"). Upon payment of the Purchase Price, all of Purchaser's
obligations under the Stockholder's Agreement shall be satisfied in full.

      2. The Closing. The closing of the purchase and sale of the Shares shall
occur upon the later to occur of (i) January 2, 2001, (ii) the execution and
delivery this Agreement, and (iii) the date and time as of which all waiting
periods and all of Seller's rights to withdraw, revoke or rescind his acceptance
and execution of that certain General Release and Waiver of even date by Seller
in favor of Purchaser shall have expired and terminated (such date being
referred to as the "Closing Date"). On the Closing Date (a) Seller shall deliver
to Purchaser one or more stock certificates representing the Shares, duly
endorsed in blank for transfer, and (b) Purchaser shall pay the Purchase Price
by delivery to Seller of certified or bank cashier's check or by wire transfer
to an account designated by Seller. Notwithstanding anything herein to the
contrary, Purchaser may, at its sole option and in its sole discretion, extend
the payment of up to 50% of the purchase price for up to six (6) months with
interest on the unpaid balance at the rate of 10% per annum from the Closing
Date..

      3. Seller's Representations and Warranties. Seller makes the following
representations and warranties to Purchaser, as of the date of this Agreement,
which shall survive the Closing Date.

      (a) Seller is the true and lawful owner, both of record and beneficially,
of the Shares, free and clear of any claims, liens, options, charges or other
encumbrances whatsoever (except such as may exist pursuant to the Stockholders
Agreement).

      (b) Seller has the unqualified right to sell, assign and deliver the
Shares as provided in this Agreement.

<PAGE>

      (c) From the date of this Agreement until the Closing Date, without the
prior written consent of Purchaser, Seller shall not, either directly or
indirectly, sell, assign, mortgage, hypothecate, transfer, pledge, create a
security interest in or lien upon, encumber, give, place in trust, or otherwise
voluntarily or involuntarily dispose of any of the Shares except as hereinafter
permitted.

      (d) On the sale, transfer and delivery of the Shares by Seller to
Purchaser in accordance herewith, Purchaser will acquire good and valid title to
the Shares, free and clear of any claims, liens, options, charges or other
encumbrances whatsoever.

      4. Purchaser's Representations and Warranties. Purchaser makes the
following representations and warranties to Seller as of the date of this
Agreement, which shall survive the Closing Date.

      (a) Purchaser has taken all corporate action necessary to authorize the
execution, delivery and performance of this Agreement.

      (b) This Agreement is the legal, valid and binding obligation of
Purchaser.

      5. Miscellaneous.

      (a) This Agreement, the Separation Agreement and the General Release,
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof, and supersedes all prior agreements, understandings, and
negotiations between the parties with respect to the subject matter hereof,
including Section 2(a) of the Severance Agreement and the Stockholders Agreement
(but other than Section 2(b) and, if applicable, Section 2(c) of the Severance
Agreement).

      (b) This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.

      (c) In the event of a dispute involving this Agreement or any other
instrument executed in connection herewith, the parties hereto irrevocably agree
that venue for such dispute shall lie in any court or competent jurisdiction in
the County and State of New York.

      (d) The obligations of this Agreement shall bind and benefit the heirs,
administrators, legal representatives, successors and assigns of the parties
with the same effect as if mentioned in each instance where a party is named or
referred to.

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first set forth above.

                                   PHIBRO-TECH, INC.

                                   By:       /s/ Jack C. Bendheim
                                       -----------------------------------------
                                       Jack C. Bendheim, Chief Executive Officer

                                   By:      /s/ Nathan Z. Bistricer
                                       -----------------------------------------
                                            Nathan Z. Bistricer
<PAGE>

                              SEPARATION AGREEMENT

      This SEPARATION AGREEMENT (this "Agreement") is made and is effective as
of the Effective Date set forth herein, by and among NATHAN Z. BISTRICER
("Bistricer"), PHILIPP BROTHERS CHEMICALS, INC., a New York corporation ("the
Company") and PHIBRO-TECH, INC., a Delaware corporation (the "Phibro-Tech"),
having their principal place of business at One Parker Plaza, Fort Lee, New
Jersey (collectively the "Companies").

      WHEREAS, Bistricer has faithfully and responsibly served the Company as
Chief Financial Officer of the Company and an employee of Phibro-Tech for a
period in excess of fifteen (15) years;

      WHEREAS, Bistricer and the Board of Directors of the Companies have
determined that it is in the parties' best interests to formalize the terms and
conditions of Bistricer's separation of employment to assure continued stability
to both the Companies and Bistricer and to set forth herein the parties'
respective rights and obligations;

      NOW, THEREFORE, for and in consideration of the mutual premises and
covenants herein contained, and for other good and valuable consideration
receipt of which is hereby acknowledged, the parties hereto hereby agree as
follows:

      1. Separation Date. Bistricer's employment as an officer, director, and
employee of the Company and Phibro-Tech and all related entities (the Company,
Phibro-Tech, and their subsidiaries and affiliates being collectively referred
to as the "Companies") will terminate effective as of the close of business on
December 31, 2000 (the "Separation Date"), and the Company and Phibro-Tech agree
to accept Bistricer's resignation from such positions effective as of the
Separation Date. All communications and correspondence relating to Bistricer's
separation of employment from the Companies shall make appropriate reference to
such voluntary resignation.

      2. Effective Date. This Separation Agreement shall become effective upon
the later to occur of: (a) the execution and delivery of (i) this Agreement,
(ii) the attached General Release and Waiver (the "General Release") and, (iii)
the Stock Purchase Agreement between them of even date herewith (the "Stock
Purchase Agreement"); and (b) the date and time as of which all waiting periods
and all of Seller's rights to withdraw, revoke or rescind his acceptance and
execution of the General Release shall have expired and terminated (such date
being referred to as the "Closing Date" or the "Effective Date").

      3. Payment under Severance Agreement. Beginning as of January 1, 2001 and
continuing through December 31, 2002, (the "Final Date"), the Company shall pay
to Bistricer as severance, an amount equal to two (2) times the annual salary
($250,000.00 per year) then in effect on the effective date plus $16,070.00 in
twenty-four (24) equal monthly installments. The Company shall make all
appropriate deductions for taxes, benefits and the matters as if Bistricer had
remained an employee. The Company shall also pay to Bistricer an amount equal to
any bonus earned by Bistricer in the calendar year immediately preceding the
Separation Date, all benefits including health and other insurance as may be
permitted by law and other agreements, and Company car shall be continued
through the Final Date except in the event Bistricer accepts other employment
and receives such health or insurance benefits thereunder. In the event the
Company is prevented from continuing such benefits by law, agreement or
otherwise, the amount of each monthly payment to Bistricer shall be increased by
the monthly value of

<PAGE>

the benefit or benefits as discontinued. The Company shall, within thirty (30)
days of the Separation Date, pay to Bistricer an amount equal to the accrued but
unused vacation days as of the Separation Date. The Company will also provide
out-placement services to Bistricer at the provider of such services of
Bistricer's choice for a period of up to six (6) months but not to exceed
$15,000 in total costs and fees. Such payment shall be in full satisfaction and
discharge of all the Company's obligations under Section 2(a) of that certain
Severance Agreement dated February 21, 1995 between the Company and Bistricer
(the "Severance Agreement"). Notwithstanding anything to the contrary herein,
the termination of Bistricer's employment as of the Separation Date shall be
deemed and treated for all purposes under the Severance Agreement and the
Stockholders Agreement as the occurrence of an "Actual or Constructive
Termination" (as defined in the Severance Agreement).

      4. Expense Reimbursement. The Company shall reimburse Bistricer for all of
his reasonable business expenses incurred in the performance of his duties as an
officer, director, and employee of the Company and all related entities, subject
to the submission of expense statements and receipts evidencing such payments to
the reasonable satisfaction of the Company.

      5. Health Benefits. Subsequent to the Final Date, Bistricer and his family
shall be eligible to continue their medical and health insurance coverage
benefits at their own expense, at standard non-subsidized rates, for the maximum
period pursuant to the Consolidated Omnibus Budget Reconciliation Act (COBRA).
The Company agrees to timely provide the forms necessary to permit Bistricer and
his family to elect to continue such insurance coverage prior to their
expiration.

      6. Benefit Plans. From and after the Separation Date, Bistricer shall have
such rights in and benefits under the Company's 401(k) Plan, and from and after
the Final Date, Bistricer shall have such rights and benefits under The
Retirement Plan of Philipp Brother Chemicals, Inc. and the Company's Deferred
Compensation Plan and Trust, as are provided by the terms thereof. Consistent
with the underlying Plans, the Companies will make all reasonable arrangements
and process all forms necessary to provide for expeditious distribution of any
and all vested benefits under such Plans, as requested by Bistricer.

      7. Return of Property. Bistricer agrees to return all property of the
Company or any affiliate thereof, including but not limited to keys,
correspondence, customer and mailing lists, files (in electronic or tangible
form), documents, reports, equipment, computers and materials and other such
property as may be in his possession.

      8. Confidentiality. This Agreement and the General Release, the terms and
provisions thereof and the negotiations leading thereto, shall be and shall
remain confidential. The parties shall maintain such confidentiality, and shall
not reveal or discuss Bistricer's termination of employment other than as
required in good faith in the ordinary course, as in seeking new employment or a
successor, or with attorneys, accountants or tax advisors, or as required by
applicable securities or other law or stock market or accounting requirements,
or in other cases only with the prior written consent of the other party.
Bistricer may advise potential employers, and the Companies agree to confirm,
that Bistricer and the Companies amicably resolved their relationships and that
Bistricer voluntarily resigned from his positions and employment with the
Companies.

      9. Releases.

      (a) Except for any rights Bistricer may have under this Agreement, the
Stock Purchase Agreement, and Section 2(b) and Section 2(c) of the Severance
Agreement, Bistricer hereby releases the Companies as provided in the General
Release.

<PAGE>

      (b) Except for any rights it may have under this Agreement, the Stock
Purchase Agreement, each of the Companies for itself and on behalf of its
subsidiaries and affiliates forever releases and discharges Bistricer, his
heirs, executors, administrators, legal representatives and successors from any
and all claims, demands, causes of action, and liabilities of any kind
whatsoever (upon any legal or equitable theory, whether contractual, in tort,
common law, statutory, federal, state, local or otherwise, and including but not
limited to any claims for equitable relief, compensatory, punitive or other
damages or expenses or for attorneys' fees, or costs or disbursements of any
kind), which the Companies ever had, now have, or may hereafter have against
Bistricer by reason of any action, omission, transaction, or occurrence
occurring up to and including the Separation Date, in each case authorized by
the Chairman of the Board of the Company or otherwise performed or omitted to be
performed by Bistricer in good faith and in a manner which Bistricer reasonably
believed to be in or not opposed to the best interests of the Companies and not
unlawful. The Company and the Company covenant that, except for a proceeding
brought to enforce the terms and provisions of this Agreement, the General
Release, the Severance Agreement, the Stockholders Agreement, or the Stock
Purchase Agreement, they will not at any time commence, maintain, prosecute,
participate in as a party, or permit to be filed by any other person or entity
on their behalf, any action, suit or proceeding (judicial, administrative,
arbitral, or other) against Bistricer with respect to any act, event, or
occurrence, or any alleged failure to act, occurring up to and including the
Separation Date, in each case authorized by the Chairman of the Board of the
Company or otherwise performed or omitted to be performed by Bistricer in good
faith and in a manner which Bistricer reasonably believed to be in or not
opposed to the best interests of the Companies and not unlawful. The Company and
Phibro-Tech agree that if they violate this covenant by suing Bistricer or his
heirs, executors, administrators, legal representatives or successors, the
Companies will pay all costs and expenses of defending against the suit incurred
by Bistricer or his heirs, executors, administrators, legal representatives or
successors, including reasonable attorneys' fees. This paragraph does not apply
to claims which the Companies may have, if any, that may arise out of the
obligations of Bistricer specified in this Agreement, the General Release, the
Severance Agreement, the Stock Purchase Agreement or Consulting Agreement.

      10 . Non-Competition; Restrictive Covenants; Confidentiality and
Injunctive Relief.

      (a) Bistricer agrees that during the Term of this Agreement, without the
prior written approval of the Chairman, the President or the Board of Directors
of the Company, he will not directly or indirectly through any other person,
firm or corporation, whether for himself or as agent on behalf of any such
person, firm or corporation, whether as employee, consultant, principal, lender,
partner, officer, director, stockholder or otherwise:

            (i) engage or participate in, or become employed by, or render any
services in connection with, any business entity which is directly competitive
with the Company; or

            (ii) solicit, entice or induce any employee of the Company or
Phibro-Tech, to become employed or retained by any other person or entity;
provided, however, that the foregoing provision will not prevent Bistricer from
employing or offering to employ any such person who has been terminated by or
resigned from the Company or an affiliate prior to the commencement of
employment discussions between Bistricer and such employee, and Bistricer will
be permitted to hire and offer to hire non-executive employees of the Company or
any affiliate who are contacted as a result of the use of general newspaper or
electronic advertisement and other general non-targeted recruitment techniques
in the ordinary course of business and consistent with past practice as opposed
to targeted solicitations of any one or more of the Companies' employees; or

            (iii) solicit, entice, or induce any client, customer, supplier or
account of Phibro-Tech to terminate, reduce or phase out its contractual
relationship or other relationship with Phibro-Tech; or

<PAGE>

            (iv) make or utter dishonest statements or acts with respect to the
Company or any subsidiary of the Company or act in a manner that is intended or
understood to discredit or be detrimental to the reputation, character or
standing of the Company or any of its subsidiaries; provided, that the making in
good faith of honest misstatements or truthful statements shall not constitute a
violation of this clause (iv); or

            (v) take any action or knowingly approve the taking of any action by
any other person which is intended or could be reasonably expected to injure the
business, properties, assets, condition (financial or otherwise) or prospects of
the Company or Phibro-Tech or bring the Company or any officers thereof into
disrepute.

      (b) Notwithstanding anything herein to the contrary, Bistricer may make
passive investments in any enterprise which engages in a Competitive Business
the shares of which are publicly traded if such investment constitutes less than
five percent (5%) of the equity of such enterprise.

      (c) For purposes of this Agreement, the term "affiliate" shall mean, with
respect to any person or entity, any person or entity which directly or
indirectly controls, is controlled by or is under common control with (through
ownership of more than 50% of the voting interests or otherwise), such person or
entity, and the term "person" shall mean in individual, a corporation, an
association, a partnership, a limited liability company, an estate, a trust, and
any other entity or organization.

      (d) As used in this Agreement, "Confidential Information" means trade
secrets or confidential information belonging to the Company or an affiliate to
which Bistricer had access by virtue hereunder of his relationship with the
Company and its affiliates; provided, however, that the confidential information
and trade secrets shall not include any information generally known to persons
in the industry or the public in general unless due to breach of Bistricer's
duties under this Section 10. Confidential Information includes, without
limitation, financial information, reports, and forecasts; inventions,
improvements and other intellectual property; trade secrets; know-how; designs,
processes or formulae; software; market or sales information or plans; customer
lists; and business plans, prospects and opportunities (such as possible
acquisitions or dispositions of businesses or facilities) which have been
discussed or considered by the management of the Company. Confidential
Information includes information developed by Bistricer in the course of
Bistricer's employment by the Company, as well as other information to which
Bistricer may have access in connection with Bistricer's employment.
Confidential Information also includes the confidential information of others
with which the Company has a business relationship.

      (e) At all times, now and hereafter, Bistricer will keep in confidence and
trust all such Confidential Information, and will not use or disclose any such
Confidential Information without the prior written consent of the Company,
except as may be required in connection with any judicial or administrative
proceeding or inquiry, provided that the Company shall have been given prior
written notice of such disclosure.

      (f) Bistricer recognizes that the Company possess a proprietary interest
in the Confidential Information and has the exclusive right to use, protect by
copyright, patent or trademark, or otherwise exploit the processes, ideas and
concepts contained therein to the exclusion of Bistricer, except as otherwise
agreed between the Company and Bistricer in writing.

      (g) The parties acknowledge that the time, scope, geographic area and
other provisions of this Section 10 have been specifically negotiated by
sophisticated parties and agree that (i) all such provisions are reasonable
under the circumstances of this Agreement, (ii) are given as an integral and
essential part of this Agreement and (iii) but for the covenants of each of
Bistricer and of the Company contained in this

<PAGE>

Section 10, neither the Company nor Bistricer would have entered into this
Agreement. Each of the Company and Bistricer has independently consulted with
its or his counsel and has been advised in all respects concerning the
reasonableness and propriety of the covenants contained herein, with specific
regard to the business to be conducted by the Company and its subsidiaries and
affiliates, and represents that this Agreement is intended to be, and shall be,
fully enforceable and effective in accordance with its terms.

      (h) The provisions of this Section 10 shall survive the termination of
this Agreement, irrespective of the reason therefor.

      (i) The provisions of the Employee Invention and Secrecy Agreement dated
January 1, 1991, annexed hereto as Exhibit A ("Employee Secrecy Agreement"),
shall remain effective to the extent provided therein.

      (j) Bistricer acknowledges that the Confidential Information is of a
special, unique and extraordinary character and is of commercial value to the
business of the Company and/or its subsidiaries. By reason of the foregoing,
Bistricer consents and agrees that the consequences of any breach of Section 10
may not be fully compensable in damages and, therefore, in addition to any other
remedies which the Company may have under this Agreement at law or equity or
otherwise, any or all of which shall be available to the Company, the Company
and/or any affiliates shall be entitled to apply (without the necessity of
posting any bond) to any court of competent jurisdiction for an injunction
restraining Bistricer or any other party from committing or continuing any such
violation (or participating therein) of this Agreement.

      11. Indemnification. The Companies shall continue any indemnification
obligations arising by statute, or under any directors and officers' liability
insurance policy covering Bistricer, in each case to the same extent as other
directors and officers remain covered from time to time, or the Certificate of
Incorporation or Bylaws of any of the Companies in effect as of the Separation
Date. The Companies agree that if Bistricer is made a party, or is threatened to
be made a party, to any action, suit or proceeding, whether civil, criminal,
administrative or investigative (a "Proceeding"), by reason of the fact that he
is or was a stockholder, director, officer or employee of any of the Companies
or is or was serving at the request of the Companies as a director, officer,
member, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether or not the basis of such Proceeding is Bistricer's alleged action
in an official capacity while serving as a director, officer, member, employee
or agent, Bistricer shall be indemnified and held harmless by the Companies to
the fullest extent legally permitted or authorized by the Companies'
certificates of incorporation or bylaws or resolutions of such Company's Board
of Directors, against all cost, expense, liability and loss (including, without
limitation, reasonable attorney's fees, judgments, fines, ERISA excise taxes or
penalties and amounts paid or to be paid in settlement with the approval of the
Company) reasonably incurred or suffered by Bistricer in connection therewith,
and such indemnification shall continue as to Bistricer even if he has ceased to
be a director, officer, member, employee or agent of either of the Companies or
other entity and shall inure to the benefit of his heirs, executors,
administrators, legal representatives or successors, in each case to the same
extent as other directors and officers remain covered from time to time. The
Companies shall advance to Bistricer all reasonable costs and expenses incurred
by him in connection with a Proceeding within 20 days after receipt by the
Companies of a written request for such advance, accompanied by an undertaking
by Bistricer to repay the amount of such advance if it shall ultimately be
determined that he is not entitled to be indemnified against such costs and
expenses. Bistricer shall be entitled to indemnification under this Section so
long as he meets the standard of conduct specified in Section 145 of the
Delaware General Corporation Law or Section 1022 of the New York Business
Corporation Law, as the case may be. In addition, the Companies hereby agree to
indemnify and hold Bistricer, and his heirs, executors, administrators, legal
representatives, successors

<PAGE>

and assigns, harmless from and against any and all claims, loss, damage,
liability, cost or expense, including but not limited to reasonable attorneys'
fees, incurred in defense of any such claim, arising out of or related to
Bistricer's positions and employment with the Companies and the Companies'
business, including but not limited to actions or claims against the Companies
for copyright infringement or securities violations, other than in respect of
the embezzlement or misappropriation of funds of the Companies or other acts of
fraud against the Companies.

      12. General Indemnification. The parties hereto hereby agree to indemnify
each other for all damages and loss (including without limitation, costs and
expenses of litigation and reasonable attorneys' fees) resulting from a breach
of this Agreement by the other party.

      13. Benefit. This Agreement shall bind and inure to the benefit of the
heirs, executors, administrators, legal representatives, successors and assigns
of Bistricer and the successors and assigns of the Companies.

      14. Entire Agreement; Paragraph Titles. This Agreement, the General
Release and the Stock Purchase Agreement contain the entire agreement between
the parties with respect to the subject matter hereof, and supersede any and all
prior agreements or understandings, oral or written, between the parties with
respect to the subject matter hereof and thereof (other than Section 2(b) and,
if applicable, Section 2(c) of the Severance Agreement). This Agreement may not
be modified other than by a writing signed on behalf of both parties. In
executing this Agreement, neither party is relying upon any statement or
representation beyond this Agreement or the General Release, the Stock Purchase
Agreement or the Consulting Agreement. Paragraph headings are included in this
Agreement for reference only, are not part of this Agreement, and do not in any
way modify any of the terms of this Agreement.

      15. No Admission. Nothing contained in this Separation Agreement or in the
General Release, nor the furnishing of the consideration for the Separation
Agreement and General Release, shall be deemed or construed at any time to be an
admission by either Bistricer or the Companies of any improper or unlawful
conduct.

      16. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York.

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement this 4th day of October, 2000.

                                               PHIBRO-TECH, INC.

                                               By:   /s/ Jack C. Bendheim
                                                   ----------------------------
                                                     Jack C. Bendheim

                                                     /s/ Nathan Z. Bistricer
                                               ---------------------------------
                                                     Nathan Z. Bistricer

                                               PHILIPP BROTHERS CHEMICALS, INC.

                                               By:   /s/ Jack C. Bendheim
                                                   -----------------------------
                                                     Jack C. Bendheim

<PAGE>

                           GENERAL RELEASE AND WAIVER

      I understand that my active employment with PHILIPP BROTHERS CHEMICALS,
INC., A New York corporation ("PBC") and PHIBRO-TECH, INC., a Delaware
corporation ("Phibro-Tech"), terminated effective as of December 31, 2000. I
understand that in consideration for my agreement to the following terms of this
General Release and Waiver, I will receive compensation and/or benefits
described in the Separation Agreement (the "Separation Agreement") between me
and PBC and Phibro-Tech and PBC of even date which is attached hereto and which
is hereby incorporated herein and made a part of this General Release and
Waiver.

      1. I understand and agree that I will not receive the compensation and/or
benefits specified in the Separation Agreement unless I execute this General
Release and Waiver.

      2. I understand that I may revoke this General Release and Waiver for a
period of seven (7) days following the date I execute this General Release and
Waiver. Any revocation within this period should be submitted in writing to
Phibro-Tech and PBC and state "I hereby revoke my agreement to the General
Release and Waiver." The revocation must be personally delivered, or mailed and
post marked within seven (7) days of the execution of this General Release and
Waiver. This General Release and Waiver shall not become effective or
enforceable until the revocation period has expired.

      3. Except as otherwise set forth in this General Release and Waiver and in
the Separation Agreement, and except for any and all rights and obligations
created by this General Release and Waiver and the Separation Agreement, and
those arising under or in connection with Section 2(b) of the Severance
Agreement dated February 21, 1995 (the "Severance Agreement"), and the Stock
Purchase Agreement of even date herewith between me and Phibro-Tech ("Stock
Purchase Agreement"), and any indemnification obligations arising by statute or
under any directors and officers' liability insurance policy, the Certificate of
Incorporation or Bylaws of Phibro-Tech or PBC or any affiliate in effect from
time to time, I knowingly and voluntarily release and forever discharge
Phibro-Tech and PBC and all of their parents, affiliates and subsidiaries, and
their employees, shareholders, officers and directors (hereinafter "Releasees")
from any and all claims known and unknown, which I, my heirs, executors,
administrators and assigns may have, including but not limited to, any claim
that arises out of my employment with or the termination of my employment with
PBC and Phibro-Tech; or any allegation, claim or violation arising under Title
VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991;
the Age Discrimination in Employment Act of 1967, as amended; the Older Workers
Benefits Protection Act; the Equal Pay Act of 1963, as amended; the Americans
with Disabilities Act of 1990; the Family Medical Leave Act of 1993; the Civil
Rights Act of 1866, as amended; the Worker Adjustment Retraining and
Notification Act; the Employee Retirement Income Security Act of 1974; any
applicable Executive Order Programs; the Fair Labor Standards Act, or their
state or local counterparts; the New Jersey Law Against Discrimination; the
Conscientious Employee Protection Act; and any other federal, state or local
civil or human rights law or any other local, state or federal law, regulation
or ordinance; or under any public policy, contract or tort, or under common law;
for wrongful discharge; breach of contract, infliction of emotional distress, or
defamation; or arising under any policies, practices or procedures of
Phibro-Tech; or any claim for costs, fees or other expenses, including
attorneys' fees, incurred in these matters.

      4. I agree not to file any charge or complaint on my own behalf, based
upon claims arising from, or attributable in any way to, my employment with or
separation from PBC and Phibro-Tech, before any

<PAGE>

federal, state or local court, or administrative agency, or to participate in
any such charge or complaint which may be made by any other person or
organization on my behalf. I also agree to withdraw and/or dismiss any such
pending charges or complaints.

      5. Notwithstanding the provisions of paragraphs 3 and 4 above, this
General Release and Waiver shall not act as a release of the obligations of PBC
or Phibro-Tech specified in the Separation Agreement, Section 2(b) and, if
applicable, Section 2(c) of the Severance Agreement, or the Stock Purchase
Agreement.

      6. I acknowledge that I have been advised I have twenty-one (21) days to
consider this General Release and Waiver. I acknowledge that PBC and Phibro-Tech
have advised me in writing of my right to consult with an attorney regarding the
legal consequences of this General Release and Waiver and that I have had an
opportunity to discuss the terms of this General Release and Waiver with an
attorney. I understand the legal consequences of this General Release and
Waiver.

      7. I agree that neither this General Release and Waiver, nor the
furnishing of the consideration for this General Release and Waiver, shall be
deemed or construed at any time to be an admission by PBC, Phibro-Tech or myself
of any improper or unlawful conduct.

      8. I agree that if I violate this General Release and Waiver by suing PBC
or Phibro-Tech or those associated with them, I will pay all costs and expenses
of defending against the suit incurred by Phibro-Tech or those associated with
them, including reasonable attorneys' fees. This paragraph does not apply to
claims which I may have, if any, that may arise out of the obligations of PBC
and Phibro-Tech specified in the Separation Agreement, the Severance Agreement,
the Stockholders Agreement, or the Stock Purchase Agreement.

      9. I agree that this General Release and Waiver is confidential and agree
not to disclose any information regarding the terms of this General Release and
Waiver, except to my attorneys, accountants or tax advisors, or as required by
applicable securities or other law or stock market or accounting requirements,
or in other cases only with the prior written consent of the other party.

BY SIGNING THIS GENERAL RELEASE AND WAIVER, I STATE THAT:

      A. I HAVE READ IT.

      B. I UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, AS AMENDED; TITLE VII OF' THE CIVIL RIGHTS ACT OF 1964, AS AMENDED;
THE EQUAL PAY ACT OF 1963; THE AMERICANS WITH DISABILITIES ACT OF 1990; THE NEW
JERSEY LAW AGAINST DISCRIMINATION; THE CONSCIENTIOUS EMPLOYEE PROTECTION ACT;
AND UNDER ALL OTHER STATUTES AND LAWS AS MORE PARTICULARLY DESCRIBED IN THIS
GENERAL RELEASE AND WAIVER, AND PURSUANT TO ANY OTHER AGREEMENTS OR CONTRACTS I
MAY HAVE WITH PHIBRO-TECH (EXCEPT AS EXCLUDED AS PROVIDED HEREINABOVE).

      C. I AGREE WITH EVERYTHING IN IT.

      D. I HAVE BEEN ADVISED OF MY RIGHT TO CONSULT WITH AN ATTORNEY BEFORE
EXECUTING IT.

<PAGE>

      E. I HAVE BEEN GIVEN WHAT I CONSIDER A SUFFICIENT PERIOD OF TIME TO REVIEW
AND CONSIDER THIS GENERAL RELEASE AND WAIVER BEFORE SIGNING IT; AND I UNDERSTAND
THAT FOR A PERIOD OF SEVEN (7) DAYS AFTER SIGNING IT, I MAY REVOKE MY ACCEPTANCE
OF IT IN THE MANNER PROVIDED IN THIS WAIVER AND RELEASE.

      F. I HAVE SIGNED THIS GENERAL RELEASE AND WAIVER KNOWINGLY AND
VOLUNTARILY.

      G. I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE AND WAIVER MAY NOT
BE AMENDED, WAIVED, CHANGED, OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING
SIGNED BY AN AUTHORIZED REPRESENTATIVE OF PHIBRO-TECH.

<PAGE>

Dated: ______________________,2000

STATE OF ____________________)
                             : ss.
COUNTY OF ___________________)

      I certify that on__________________, 2000, Nathan Z. Bistricer personally
came before me and acknowledged under oath, to my satisfaction, that this
person:

      (a) is named in and personally signed this document; and

      (b) signed, sealed and delivered this document as his act and deed.

                                                ________________________________
                                                Nathan Z. Bistricer

__________________________
Notary PublicExhibit 4.1

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR TTR TECHNOLOGIES, INC. SHALL HAVE RECEIVED
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

                                   APPENDIX A

           FORM OF WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK

No. 1                                                           _________ Shares

FOR VALUE RECEIVED, TTR Technologies, Inc. (the "Company"), hereby certifies
that Brean Murray & Co., Inc., or a permitted assign thereof, is entitled,
subject to the vesting provisions specified in Sub-section 1 c) below, to
purchase from the Company, at any time or from time to time commencing June 1,
2000, and prior to 5:00 P.M., New York City time, on June 30, 2005,
___________________ (__________) fully paid and nonassessable shares of the
common stock, of the Company for a per share purchase price of US $______ for an
aggregate purchase price of ________________________. (Hereinafter, (i) said
common stock, together with any other equity securities which may be issued by
the Company with respect thereto or in substitution therefore, is referred to as
the "Common Stock," (ii) the shares of the Common Stock purchasable hereunder or
under any other Warrant (as hereinafter defined) are referred to as the "Warrant
Shares," (iii) the aggregate purchase price payable hereunder for the Warrant
Shares is referred to as the "Aggregate Warrant Price," (iv) the price payable
hereunder for each of the Warrant Shares is referred to as the "Per Share
Warrant Price," (v) this Warrant, all identical warrants issued on the date
hereof and all warrants hereafter issued in exchange or substitution for this
Warrant or such other warrants are referred to as the "Warrants" and (vi) the
holder of this Warrant is referred to as the "Holder" and the holder of this
Warrant and all other Warrants are referred to as the "Holders"). The Aggregate
Warrant Price is not subject to adjustment. The Per Share Warrant Price is
subject to adjustment as hereinafter provided; in the event of any such
adjustment, the number of Warrant Shares shall be adjusted by dividing the
Aggregate Warrant Price by the Per Share Warrant Price in effect immediately
after such adjustment.

1.    Exercise of Warrant.

      a)    Exercise for Cash

                                       1
<PAGE>

      Subject to the vesting provisions set forth in Sub-section 1 (c) below,
      this Warrant may be exercised, in whole at any time or in part from time
      to time, commencing June 1, 2000, and prior to 5:00 P.M., New York City
      time, on June 30, 2005, by the Holder by the surrender of this Warrant
      (with the subscription form at the end hereof duly executed) at the
      address set forth in Subsection 9(a) hereof, together with proper payment
      of the Aggregate Warrant Price, or the proportionate part thereof if this
      Warrant is exercised in part. Payment for Warrant Shares shall be made by
      certified or official bank check payable to the order of the Company. If
      this Warrant is exercised in part, this Warrant must be exercised for a
      number of whole shares of the Common Stock, and the Holder is entitled to
      receive a new Warrant Covering the Warrant Shares which have not been
      exercised and setting forth the proportionate part of the Aggregate
      Warrant Price applicable to such Warrant Shares. Upon such surrender of
      this Warrant, the Company will (a) issue a certificate or certificates in
      the name of the Holder for the largest number of whole shares of the
      Common Stock to which the Holder shall be entitled and, if this Warrant is
      exercised in whole, in lieu of any fractional share of the Common Stock to
      which the Holder shall be entitled, pay to the Holder cash in an amount
      equal to the fair value of such fractional share (determined in such
      reasonable manner as the Board of Directors of the Company shall
      determine), and (b) deliver the other securities and properties receivable
      upon the exercise of this Warrant, or the proportionate part thereof if
      this Warrant is exercised in part, pursuant to the provisions of this
      Warrant.

      b)    Cashless Exercise

      In the event that the common stock has become publicly traded, then in
      lieu of exercising this Warrant in the manner set forth in paragraph 1(a)
      above, the Warrant may be exercised by surrender of the Warrant without
      payment of any other consideration, commission or remuneration, by
      execution of the cashless exercise subscription form (at the end hereof,
      duly executed). The number of shares to be issued in exchange for the
      Warrant will be computed by subtracting the Warrant Exercise Price from
      the closing bid price of the common stock on the date of receipt of the
      cashless exercise subscription form, multiplying that amount by the number
      of shares represented by the Warrant, and dividing by the closing bid
      price as of the same date.

      c)    Vesting

      Notwithstanding anything to the contrary set forth in foregoing, except
      with respect to the provisions set forth in Subsections 3 (i) and 3 (j) of
      this Warrant shall become exercisable as herein provided on the first
      business day following the occurrence of the Vesting Event. As used
      herein, the term "Vesting Event" shall mean and refer to the circumstance
      where the average weighted bid price, on a daily basis (`awb'), of a share
      of the Company's Common Stock (the "Stock") on the stock exchange or
      market on which the Stock is primarily traded as reported on Bloomberg
      (such price being the, the "Average Weighted Bid Price"), for a
      consecutive 20 trading period shall exceed $10 per share of Stock. The
      Vesting Event shall be deemed to have occurred on the close of such 20
      trading day period.

                                       2
<PAGE>

2.    Reservation of Warrant Shares.

      The Company agrees that, prior to the expiration of this Warrant, the
      Company will at all times have authorized and in reserve, and will keep
      available, solely for issuance or delivery upon the exercise of this
      Warrant, the shares of the Common Stock and other securities and
      properties as from time to time shall be receivable upon the exercise of
      this Warrant, free and clear of all restrictions on sale or transfer and
      free and clear of all pre-emptive rights.

3.    Protection Against Certain Dilutive Events.

      a)    If, at any time or from time to time after the date of this Warrant,
            the Company shall issue or distribute to the holders of shares of
            Common Stock evidences of its indebtedness, any other securities of
            the Company or any cash, property or other assets (excluding a
            subdivision, combination or reclassification, or dividend or
            distribution payable in shares of Common Stock, referred to in
            Subsection 3(b)(ii), and also excluding cash dividends or cash
            distributions paid out of net profits legally available therefor)
            (any such non-excluded event being herein called a "Special
            Dividend"), the Per Share Warrant Price shall be adjusted by
            multiplying the Per Share Warrant Price then in effect by a
            fraction, the numerator of which shall be the then current market
            price of the Common Stock (defined as the average for the thirty
            consecutive business days immediately prior to the record date of
            the Average Weighted Bid Price of the Common Stock as reported on
            the stock exchange or market on which the stock is primarily traded)
            less the fair market value (as determined by the Company's Board of
            Directors) of the evidences of indebtedness, securities or property,
            or other assets issued or distributed in such Special Dividend
            applicable to one share of Common Stock and the denominator of which
            shall be such then current market price per share of Common Stock.
            An adjustment made pursuant to this Subsection 3(a) shall become
            effective immediately after the record date of any such Special
            Dividend.

      b)    In case the Company shall hereafter (i) pay a dividend or make a
            distribution on its capital stock in shares of Common Stock, (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 Common Stock any shares of capital stock of
            the Company, the Per Share Warrant Price shall be adjusted so that
            the Holder of any Warrant upon the exercise hereof shall be entitled
            to receive the number of shares of Common Stock or other capital
            stock of the Company which he would have owned immediately prior
            thereto. An adjustment made pursuant to this Subsection 3 b(ii)
            shall become effective immediately after the record date in the case
            of a dividend or distribution and shall become effective immediately
            after the effective date in the case of a subdivision, combination
            or reclassification. If, as a result of an adjustment made pursuant
            to this

                                       3
<PAGE>

            Subsection 3 b(iii), the Holder of any Warrant thereafter
            surrendered for exercise shall become entitled to receive shares of
            two or more classes of capital stock or shares of Common Stock and
            other capital stock of the Company, the Board of Directors (whose
            determination shall be conclusive and shall be described in a
            written notice to the Holder of any Warrant promptly after such
            adjustment) shall determine the allocation of the adjusted Per Share
            Warrant Price between or among shares of such classes or capital
            stock or shares of Common Stock and other capital stock.

      c)    So long as the Average Weighted Bid Price per share of the Company's
            Common Stock remains at all time in excess of $10, except as
            provided in Subsection 3(a) and 3(e) and except for any shares or
            securities issued to employees, consultants and directors pursuant
            to a stock option plan approved by the Company's Board, in case the
            Company shall hereafter issue or sell any shares of Common Stock for
            a consideration per share less than the Per Share Warrant Price on
            the date of such issuance or sale, the Per Share Warrant Price shall
            be adjusted as of the date of such issuance or sale so that the same
            shall equal the consideration per share received by the Company upon
            such issuance or sale.

      d)    So long as the Average Weighted Bid Price per share of the Company's
            Common Stock remains at all time in excess of $10, except as
            provided in Subsection 3(a) and 3(e) and except for any shares or
            securities issued to employees, consultants and directors pursuant
            to a stock option plan approved by the Company's Board, in case the
            Company shall hereafter issue or sell any rights, options, warrants
            or securities convertible into Common Stock entitling the holders
            thereof to purchase Common Stock or to convert such securities into
            Common Stock at a price per share (determined by dividing (i) the
            total amount, if any, received or receivable by the Company in
            consideration of the issuance or sale of such rights, options,
            warrants or convertible securities plus the total consideration, if
            any, payable to the Company upon exercise or conversion thereof (the
            "Total Consideration") by (ii) the number of additional shares of
            common stock issuable upon exercise or conversion of such
            securities) less than the then current Per Share Warrant Price in
            effect on the date of such issuance or sale, the Per Share Warrant
            Price shall be adjusted as of the date of such issuance or sale so
            that the same shall equal the price determined by dividing (i) the
            sum of (a) the number of shares of Common Stock outstanding on the
            date of such issuance or sale multiplied by the Per Share Warrant
            Price plus (b) the Total Consideration by (ii) the number of shares
            of Common Stock outstanding on the date of such issuance or sale
            plus the maximum number of additional shares of Common Stock
            issuable upon exercise or conversion of such securities.

      e)    In case of any capital reorganization or reclassification, or any
            consolidation or merger to which the Company is a party other than a
            merger or consolidation in which the Company is the continuing
            corporation, or in case of any sale or conveyance to another entity
            of the property of the Company as an entirety or substantially as an
            entirety, or in the case of any statutory exchange of securities
            with

                                       4
<PAGE>

            another corporation (including any exchange effected in connection
            with a merger of a third corporation (including any exchange
            effected in connection with a merger of a third corporation into the
            Company), the Holder of this Warrant shall have the right thereafter
            to convert such Warrant into the kind and amount of securities, cash
            or other property which he would have owned or have been entitled to
            receive immediately after such reorganization, reclassification,
            consolidation, merger, statutory exchange, sale or conveyance had
            this Warrant been converted immediately prior to the effective date
            of such reorganization, reclassification, consolidation, merger,
            statutory exchange, sale or conveyance and in any such case, if
            necessary, appropriate adjustment shall be made in the application
            of the provisions set forth in this Section 3 with respect to the
            rights and interests thereafter of the Holder of this Warrant to the
            end that the provisions set forth in this Section 3 shall thereafter
            correspondingly be made applicable, as nearly as may reasonably be,
            in relation to any shares of stock or other securities or be, in
            relation to any shares of stock or other securities or property
            thereafter deliverable on the conversion of this Warrant. The above
            provisions of this Subsection 3(e) shall similarly apply to
            successive reorganizations, reclassifications, consolidations,
            mergers, statutory exchanges, sales or conveyances. The issuer of
            any shares of stock or other securities or property thereafter
            deliverable on the conversion of this Warrant shall be responsible
            for all of the agreements and obligations of the Company hereunder.
            Notice of any such reorganization, reclassification, consolidation,
            merger, statutory exchange, sale or conveyance and of said
            provisions so proposed to be made, shall be mailed to the holders of
            the Warrants not less than ten days following the closing of such
            event;. A sale of all or substantially all of the assets of the
            Company for a consideration consisting primarily of securities shall
            be deemed a consolidation or merger for the foregoing purposes.

      f)    No adjustment in the Per Share Warrant Price shall be required
            unless such adjustment would require an increase or decrease of at
            least $0.05 per share of Common Stock; provided, however, that any
            adjustments which by reason of this Subsection 3(f) are not required
            to be made shall be carried forward and taken into account in any
            subsequent adjustment; provided further, however, that adjustments
            shall be required and made in accordance with the provisions of this
            Section 3 (other than this Subsection 3(f)) not later than such time
            as may be required in order to preserve the tax-free nature of a
            distribution to the Holder of this Warrant or Common Stock issueable
            upon exercise hereof. All calculations under this Section 3 shall be
            made to the nearest cent or to the nearest 1/100th of a share, as
            the case may be. Anything in this Section 3 to the contrary
            notwithstanding, the Company shall be entitled to make such
            reductions in the Per Share Warrant Price, in addition to those
            required by this Section 3, as it in its discretion shall deem to be
            advisable in order that any stock dividend, subdivision of shares or
            distribution of rights to purchase stock or securities convertible
            or exchangeable for stock hereafter made by the Company to its
            shareholders shall not be taxable.

                                       5
<PAGE>

      g)    Whenever the Per Share Warrant Price is adjusted as provided in this
            Section 3 and upon any modification of the rights of a Holder of
            Warrants in accordance with this Section 3, the Company shall
            furnish to the Holder a certificate, signed by the Company's Chief
            Financial Officer, setting forth the Per Share Warrant Price and the
            number of Warrant Shares after such adjustment or the effect of such
            modification, a brief statement of the facts requiring such
            adjustment or modification and the manner of computing the same and
            cause copies of such certificate to be mailed to the Holders of the
            Warrants.

      h)    If the Board of Directors of the Company shall declare any dividend
            or other distribution with respect to the Common Stock, other than a
            cash distribution out of earned surplus, the Company shall mail
            notice thereof to the Holders of the Warrants not less than 15 days
            prior to the record date fixed for determining shareholders entitled
            to participate in such dividend or other distribution.

      i)    In the event of a merger, combination, consolidation or the sale of
            substantially all of the assets of the Company, if the Average
            Weighted Bid Price of the common stock on the stock exchange or
            market on which it is primarily traded for the 30 trading days
            immediately preceding the announcement of that event is less than
            120% of the original Per Share Warrant Price (or any subsequently
            Adjusted Per Share Warrant Price), then the Per Share Warrant Price
            will automatically be adjusted to a price equal to 80% of that
            average trading price.

      j)    During the last month prior to the expiration of this Warrant, if
            the Average Weighted Bid Price of the common stock on stock exchange
            or market on which it is primarily traded for the 30 trading days
            preceding that last month is less than 120% of the original Per
            Share Warrant Price (or any subsequently Adjusted Per Share Warrant
            Price), then the Per Share Warrant Price will be automatically
            reduced to a price equal to 80% of that average trading price.

4.    Fully Paid Stock; Taxes.

      The Company agrees that the shares of the Common Stock represented by each
      and every certificate for Warrant Shares delivered on the exercise of this
      Warrant shall, at the time of such delivery, be validly issued and
      outstanding, fully paid and nonassessable, and not subject to pre-emptive
      rights, and the Company will take all such actions as may be necessary to
      assure that the par value or stated value, if any, per share of the Common
      Stock is at all times equal to or less than the then Per Share Warrant
      Price. The Company further covenants and agrees that it will pay, when due
      and payable, any and all Federal and state stamp, original issue or
      similar taxes which may be payable in respect of the issue of any Warrant
      Share or certificate therefor.

5.    Registration Under Securities Act of 1933.

                                       6
<PAGE>

      a)    The Company agrees that if, at any time and from time to time during
            the period commencing on June 1, 2000 and ending on June 30, 2005,
            the Board of Directors of the Company shall authorize the filing of
            a registration statement or a post-effective amendment to a
            registration statement (any such registration statement being
            hereinafter called a "Subsequent Registration Statement") under the
            Act other than a registration statement on Form S-8 or other form
            which does not include substantially the same information as would
            be required in a form for the general registration of securities) in
            connection with the proposed offer of any of its securities by it or
            any of its shareholders, the Company will (i) promptly notify the
            Holder and each of the Holders, if any, of other Warrants and/or
            Warrant Shares that such Subsequent Registration Statement will be
            filed and that the Warrant Shares which are then held, and/or which
            may be acquired upon the exercise of the Warrants, by the Holder and
            such Holders, will, at the Holder's and such Holders' request, be
            included in such Subsequent Registration Statement, (ii) include in
            the securities covered by such Subsequent Registration Statement all
            Warrant Shares which it has been so requested to include, (iii) use
            its best efforts to cause such Subsequent Registration Statement to
            become effective as soon as practicable and (iv) take all other
            action necessary under any Federal or state law or regulation of any
            governmental authority to permit all Warrant Shares which it has
            been so requested to include in such Subsequent Registration
            Statement or to be sold or otherwise disposed of, and will maintain
            such compliance with each such Federal and state law and regulation
            of any governmental authority for the period necessary for the
            Holder and such Holders to effect the proposed sale or other
            disposition. The Holders rights hereunder shall be subject to the
            Holder's compliance with the conditions or restrictions, including
            without limitation, lock-ups, required by an underwriter (in the
            case of an underwritten offering) and any restrictions or lock-ups
            required by an existing shareholder (in the case of an amendment to
            a currently effective registration statement). The Holder's rights
            hereunder shall be limited to one (1) such registration.

      b)    Whenever the Company is required pursuant to the provisions of this
            Section 5 to include Warrant Shares in a registration statement or a
            post-effective amendment to a registration statement, the Company
            shall (i) furnish each Holder of any such Warrant Shares and each
            underwriter of such Warrant Shares with such copies of the
            prospectus, including the preliminary prospectus, conforming to the
            Act, (and such other documents as each such Holder or each such
            underwriter may reasonably request) in order to facilitate the sale
            or distribution of the Warrant Shares, (ii) use its best efforts to
            register or qualify such Warrant Shares under the blue sky laws (to
            the extent applicable) of such jurisdiction or jurisdictions as the
            Holders of any such Warrant Shares and each underwriter of Warrant
            Shares being sold by such Holders shall reasonably request and (iii)
            take such other actions as may be reasonably necessary or advisable
            to enable such Holders and such underwriters to consummate the sale
            or distribution in such jurisdiction or jurisdictions in which such
            Holders shall have reasonably requested that the Warrant Shares be
            sold.

                                       7
<PAGE>

      c)    The Company shall pay all expenses incurred in connection with any
            registration or other action pursuant to the provisions of this
            Section 5, other than underwriting discounts and applicable transfer
            taxes relating to the Warrant Shares.

      d)    The Company will indemnify the Holders of Warrant Shares which are
            included in each Subsequent Registration Statement substantially to
            the same extent as the Company has indemnified the underwriters (the
            "Underwriters") of its public offering of Common Stock pursuant to
            the Underwriting Agreement and such Holders will indemnify the
            Company (and the underwriters, if applicable) with respect to
            information furnished by them in writing to the Company for
            inclusion therein substantially to the same extent as the
            Underwriters have indemnified the Company.

6.    Limited Transferability.

      (a)   The Holder of this Warrant, by acceptance hereof, acknowledges that
            this Warrant and the shares of Warrant Shares to be issued upon
            exercise hereof are being acquired solely for the Holder's own
            account and not as a nominee for any other party, and for
            investment, and that the Holder will not offer, sell, transfer or
            otherwise dispose of this Warrant or any shares of Warrant Shares to
            be issued upon exercise hereof except pursuant to an effective
            registration statement, or an exemption from registration, under the
            Securities Act and any applicable state securities laws.

      b)    This Warrant may not be sold, transferred, assigned or hypothecated
            by the Holder until the first anniversary hereof except (a) to any
            successor firm or corporation of Brean Murray & Co., Inc. or (b) to
            any of the officers, managing directors, any associates of Brean
            Murray & Co., Inc. The Company may treat the registered Holder of
            this Warrant as he or it appears on the Company's books at any time
            as the Holder for all purposes. The Company shall permit any Holder
            of a Warrant or his duly authorized attorney, upon written request
            during ordinary business hours, to inspect and copy or make extracts
            from its books showing the registered holders of Warrants. All
            warrants issued upon the transfer or assignment of this Warrant will
            be dated the same date as this Warrant, and all rights of the Holder
            thereof shall be identical to those of the Holder.

      c)    Except as provided in paragraph (c) below, this warrant and all
            certificates representing shares of Warrant Stock issued upon
            exercise hereof shall be stamped or imprinted with a legend in
            substantially the following form:

            THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
      HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT
      BE SOLD, TRANSFERRED OR

                                       8
<PAGE>

      OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
      APPLICABLE STATE SECURITIES LAWS OR TTR TECHNOLOGIES, INC. SHALL HAVE
      RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT
      REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
      PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

      d)    The restrictions imposed by this Section (6) upon the transfer of
            this Warrant and the shares of Warrant Stock to be purchased upon
            exercise hereof shall terminate (A) when such securities shall have
            been effectively registered under the Securities Act, (B) upon the
            Issuer's receipt of an opinion of counsel, in form and substance
            reasonably satisfactory to the Issuer, addressed to the Issuer to
            the effect that such restrictions are no longer required to ensure
            compliance with the Securities Act or (C) upon the Issuer's receipt
            of other evidence reasonably satisfactory to the Issuer that such
            registration is not required. Whenever such restrictions shall cease
            and terminate as to any such securities, the Holder thereof shall be
            entitled to receive from the Issuer (or its transfer agent and
            registrar), without expense (other than applicable transfer taxes,
            if any), new Warrants (or, in the case of shares of Warrant Stock,
            new stock certificates) of like tenor not bearing the applicable
            legends required by paragraph (b) above relating to the Securities
            Act and state securities laws.

7.    Loss, etc., of Warrant.

      Upon receipt of evidence satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant, and of indemnity reasonably
      satisfactory to the Company, if lost, stolen or destroyed, and upon
      surrender and cancellation of this Warrant, if mutilated, the Company
      shall execute and deliver to the Holder a new Warrant of like date, tenor
      and denomination.

8.    Warrant Holder Not Shareholders.

      Except as otherwise provided herein, this Warrant does not confer upon the
      Holder any right to vote or to consent to or receive notice as a
      shareholder of the Company, as such, in respect of any matters whatsoever,
      or any other rights or liabilities as a shareholder, prior to the exercise
      hereof.

9.    Communication.

      No notice or other communication under this Warrant shall be effective
      unless, but any notice or other communication shall be effective and shall
      be deemed to have been given if, the same is in writing and is mailed by
      first-class mail, postage prepaid, addressed to:

      a)    the Company at 2 Hanagar St., PO Box 2295, Kfar-Saba, 44425, Israel
            or such other address as the Company has designated in writing to
            the Holder.

                                       9
<PAGE>

      b)    the Holder at 570 Lexington Avenue, 12th Floor, New York, New York
            10022, or such other address as the Holder has designated in writing
            to the Company.

10.   Headings.

      The headings of this Warrant have been inserted as a matter of convenience
      and shall not affect the construction hereof.

11.   Applicable Law.

      This Warrant shall be governed by and construed in accordance with the law
      of the State of New York without giving effect to the principles of
      conflicts of law thereof.

                                       10
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
President & Chief Executive Officer and its corporate seal to be hereunto
affixed by its Secretary this day of _________ , 2000.

                                                  TTR Technologies, Inc.

                                                   By /s/ Emanuel Kronitz
                                                     ---------------------------
                                                     Emanuel Kronitz
                                                     Chief Operations Officer

ATTEST:

---------------------
Secretary

[Corporate Seal]

                                       11
<PAGE>

                                  SUBSCRIPTION

The undersigned, _________________, pursuant to the provisions of the foregoing
Warrant, hereby agrees to subscribe for and purchase _______________ shares of
the Common Stock of TTR Technologies, Inc. Common stock covered by said Warrant,
and makes payment therefor in full at the price per share provided by said
Warrant.

Dated:                                 Signature:
      -------------                              ------------------------------

                                       Address:
                                                 ------------------------------

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

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

                                       12
<PAGE>

                         CASHLESS EXERCISE SUBSCRIPTION

The undersigned, ______________________, pursuant to the provisions of the
foregoing Warrant, hereby agrees to subscribe to that number of shares of Common
Stock of TTR Technologies, Inc. as are issuable in accordance with the formula
set forth in paragraph 1(b) of the Warrant, and makes payment therefore in full
by surrender and delivery of this Warrant.

Dated:                                 Signature:
      -------------                              ------------------------------
Address:
        ------------------------------------------------------------------------

                                       13

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