Document:

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                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY

                      EQUITY REGISTRATION RIGHTS AGREEMENT

                            DATED AS OF JUNE 29, 2004

                                     BETWEEN

                             VISKASE COMPANIES, INC.

                                       AND

                            JEFFERIES & COMPANY, INC.

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      This Equity Registration Rights Agreement (the "Agreement") is made and
entered into as of June 29, 2004, between Viskase Companies, Inc., a Delaware
corporation (the "Company"), and Jefferies & Company, Inc. (the "Initial
Purchaser"), who has agreed to purchase from the Company, pursuant to the
Purchase Agreement (as defined below) (i) 90,000 units (the "Units"), each Unit
consisting of (A) $1,000 in aggregate principal amount of an 11-1/2% Senior
Secured Note due 2011 of the Company (the "Notes") and (B) one warrant
representing the right to purchase 8.947 shares of common stock, par value $0.01
per share, of the Company (the "Common Stock"), at an exercise price of $0.01
per share, subject to adjustment (collectively, the "Warrants"). The Common
Stock issuable upon exercise of the Warrants are hereinafter collectively
referred to as the "Warrant Shares".

      This Agreement is made pursuant to the Purchase Agreement (the "Purchase
Agreement"), dated as of June 17, 2004, between the Company and the Initial
Purchaser. To induce the Initial Purchaser to purchase the Warrants, the Company
has agreed to provide the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the obligations of
the Initial Purchaser set forth in Section 3 of the Purchase Agreement. Unless
otherwise defined herein, capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Purchase Agreement.

      The parties hereby agree as follows:

      Section 1. Definitions.

      As used in this Agreement, the following capitalized terms shall have the
following meanings:

      "Affiliate": As defined in Rule 144 of the Securities Act.

      "Closing Date": The date hereof.

      "Common Stock": The common stock, par value $0.01 per share, of the
Company.

      "Effectiveness Date": The 270th day after the Closing Date.

      "Exchange Act": The Securities Exchange Act of 1934, as amended.

      "Existing Holders": As defined in Section 6(b) hereof.

      "Filing Date": The 180th day after the Closing Date.

      "Holder": As defined in Section 2 hereof.

      "NASD": means the National Association of Securities Dealers, Inc.

      "Person": Any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof or any other entity.

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      "Piggy-Back Registration": As defined in Section 6 hereof.

      "Prospectus: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as supplemented by any
prospectus supplement, and all material incorporated by reference into such
prospectus.

      "Public Equity Offering": means an underwritten offering of Common Stock
pursuant to a registration statement that has been declared effective by the SEC
pursuant to the Securities Act (other than a registration statement on Form S-8
or otherwise relating to equity securities issuable under any employee benefit
plan of the Company).

      "Registrable Securities": At any time, any of (i) the Warrant Shares
(whether or not the related Warrants have been exercised) and (ii) any other
securities issued or issuable with respect to any Warrant Shares by way of stock
dividends or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or otherwise. As
to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when (a) a Registration Statement with respect to the
offering of such securities by the Holder thereof shall have been declared
effective under the Securities Act and such securities shall have been disposed
of by such Holder pursuant to such Registration Statement, (b) such securities
have been sold to the public pursuant to Rule 144(k) (or any similar provisions
then in force, but not Rule 144A) promulgated under the Securities Act, (c) such
securities shall have been otherwise transferred by the Holder thereof and new
certificates for such securities not bearing a legend restricting further
transfer shall have been delivered by the Company or its transfer agent and
subsequent disposition of such securities shall not require registration or
qualification under the Securities Act or any similar state law then in force or
(d) such securities shall have ceased to be outstanding.

      "Registration Statement": Any registration statement of the Company
relating to, or entitling a Holder to request, the registration for resale of
Registrable Securities, including the Prospectus included therein, all
amendments thereto (including post-effective amendments) and all exhibits and
all material incorporated by reference therein.

      "Restricted Securities": As defined in Rule 144 of the Securities Act.

      "SEC": The Securities and Exchange Commission.

      "Securities Act": The Securities Act of 1933, as amended.

      "Shelf Registration Statement": As defined in Section 4 hereof.

      "Warrant Agreement": The Warrant Agreement dated the Closing Date by and
between the Company and Wells Fargo Bank, National Association, as Warrant
Agent.

      "Warrant Shares": The Common Stock or other securities that any Holder may
acquire upon exercise of a Warrant, together with any other securities which
such Holder may acquire on account of any such securities, including, without
limitation, as the result of any dividend or other distribution on Common Stock
or any split or combination of such Common Stock as provided for in the Warrant
Agreement.

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      "Warrants": The warrants of the Company issued and sold pursuant to the
Purchase Agreement and the Warrant Agreement, together with any warrants issued
in substitution or replacement therefor.

      Section 2. Holders of Registrable Securities.

      A Person is deemed to be a Holder of Registrable Securities (a "Holder")
whenever such Person owns Registrable Securities or has the right to acquire
such Registrable Securities by exercising Warrants held by such Person, whether
or not such acquisition has actually been effected.

      Section 3. Registration Procedures.

      In connection with any Registration Statement filed by the Company, the
Company shall:

            (a) (i) furnish to the Holders, prior to the filing thereof with the
      Commission, a copy of the Registration Statement (including all such
      documents incorporated therein by reference) and each amendment thereof
      and each supplement, if any, to the Prospectus, which documents will be
      subject to the review and comment of such Holders in connection with such
      sale, if any, for a period of at least five business days, and the Company
      will not file any such Registration Statement or related Prospectus or any
      amendment or supplement to any such Registration Statement or Prospectus
      (including all documents incorporated therein by reference) to which such
      selling Holders shall reasonably object within five business days after
      the receipt thereof; and (ii) include the names of the Holders who propose
      to sell Registrable Securities pursuant to the Registration Statement as
      selling securityholders. A selling Holder shall be deemed to have
      reasonably objected to such filing if such Registration Statement,
      amendment, related Prospectus or supplement, as applicable, as proposed to
      be filed, contains an untrue statement of a material fact or omit to state
      any material fact necessary to make the statements therein not misleading
      or fails to comply with the applicable requirements of the Securities Act;

            (b) give written notice to the Initial Purchaser and the Holders:

                  (i) when the Registration Statement or any amendment thereto
            has been filed with the SEC and when the Registration Statement or
            any post-effective amendment thereto has become effective;

                  (ii) of any request by the SEC for amendments or supplements
            to the Registration Statement or the Prospectus or for additional
            information;

                  (iii) of the issuance by the SEC of any stop order suspending
            the effectiveness of the Registration Statement or the initiation of
            any proceedings for that purpose;

                  (iv) of the receipt by the Company or its legal counsel of any
            notification with respect to the suspension of the qualification of
            the Registrable

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            Securities for sale in any jurisdiction or the initiation or
            threatening in writing of any proceeding for such purpose; and

                  (v) of the happening of any event that requires the Company to
            make changes in the Registration Statement or the Prospectus in
            order that the Registration Statement or the Prospectus does not
            contain an untrue statement of a material fact nor omit to state a
            material fact required to be stated therein or necessary to make the
            statements therein (in the case of the Prospectus, in light of the
            circumstances under which they were made) not misleading.;

            (c) make every reasonable effort to obtain the withdrawal at the
      earliest possible time, of any order suspending the effectiveness of the
      Registration Statement;

            (d) furnish to each Holder, without charge, at least one copy of the
      Registration Statement and any post-effective amendment thereto, including
      financial statements and schedules, and, if the Holder so requests in
      writing, all exhibits thereto (including those, if any, incorporated by
      reference);

            (e) during the period which the Registration Statement is effective,
      deliver to each Holder, without charge, as many copies of the Prospectus
      (including each preliminary Prospectus) included in the Registration
      Statement as such Holder may reasonably request. The Company consents,
      subject to the provisions of this Agreement, to the use of the Prospectus
      by each of the Holders in connection with the offering and sale of
      Registrable Securities;

            (f) prior to any public offering of the Registrable Securities
      pursuant to any Registration Statement, register or qualify or reasonably
      cooperate with the Holders and their respective counsel in connection with
      the registration or qualification of the Registrable Securities for offer
      and sale under the securities or "blue sky" laws of such states of the
      United States as any Holder reasonably requests in writing and do any and
      all other acts or things necessary or reasonably advisable to enable the
      offer and sale in such jurisdictions of the Registrable Securities;
      provided, however, that the Company shall not be required to (i) qualify
      generally to do business in any jurisdiction where it is not then so
      qualified or (ii) take any action which would subject it to general
      service of process or to taxation in any jurisdiction where it is not then
      so subject;

            (g) use reasonable good faith efforts to cooperate with the Holders
      to facilitate the timely preparation and delivery of certificates
      representing the Registrable Securities to be sold pursuant to any
      Registration Statement free of any restrictive legends and in such
      denominations and registered in such names as the Holders may request a
      reasonable period of time prior to sales of the Registrable Securities
      pursuant to such Registration Statement;

            (h) upon the occurrence of any event contemplated by paragraphs (ii)
      through (v) of Section 3(b) above during the period for which the Company
      is required to maintain an effective Registration Statement, prepare and
      file as soon as reasonably practicable a post-effective amendment to the
      Registration Statement or a supplement to

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      the related Prospectus and any other required document so that, as
      thereafter delivered to Holders or purchasers of Securities, the
      Prospectus will not contain an untrue statement of a material fact or omit
      to state any 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;

            (i) not later than the effective date of the Registration Statement,
      provide a CUSIP number for the Registrable Securities and provide the
      Warrant Agent with printed certificates for the Registrable Securities, in
      a form eligible for deposit with The Depository Trust Company;

            (j) use its reasonable best efforts to comply with all rules and
      regulations of the Commission to the extent and so long as they are
      applicable to the Registration Statement and will make generally available
      to its security holders (or otherwise provide in accordance with Section
      11(a) of the Securities Act) an earnings statement satisfying the
      provisions of Section 11(a) of the Securities Act, no later than 45 days
      after the end of a 12-month period (or 90 days, if such period is a fiscal
      year) beginning with the first month of the Company's first fiscal quarter
      commencing after the effective date of the Registration Statement, which
      statement shall cover such 12-month period;

            (k) require, at the Company's option, each Holder of Registrable
      Securities to be sold pursuant to a Registration Statement to furnish to
      the Company such information as may be required or reasonably advisable
      (i) under applicable requirements of the SEC or (ii) to obtain any
      acceleration of the effective date of a Registration Statement, and the
      Company may exclude from such registration the Registrable Securities of
      any Holder that fails to furnish such information within 20 business days
      after receiving such request;

            (l) enter into such customary agreements and take all such other
      action, if any, in order to facilitate the disposition of the Registrable
      Securities pursuant to any Registration Statement;

            (m) (i) make reasonably available for inspection by the Holders of
      the Registrable Securities and any attorney, accountant or other agent
      retained by the Holders of the Registrable Securities all pertinent
      financial and other relevant corporate records of the Company and its
      subsidiaries and (ii) cause the officers, directors, employees,
      accountants and auditors of the Company and its subsidiaries to supply all
      relevant information reasonably requested by the Holders of the
      Registrable Securities or any such attorney, accountant or agent in
      connection with the Registration Statement, in each case, as shall be
      reasonably necessary to enable such Persons, to conduct a reasonable
      investigation within the meaning of Section 11 of the Securities Act;
      provided, however, any such records, documents, properties and such
      information that is designated in writing by the Company, in good faith,
      as confidential at the time of delivery of such records, documents,
      properties or information shall be kept confidential by any such Persons
      pursuant to the terms of a confidentiality agreement between the Company
      and such Persons containing customary terms and provisions and in form and
      substance reasonably satisfactory to the Company and such Persons,
      prohibiting the use or disclosure of any such information, except as
      required by law or legal process or as otherwise provided therein.

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            (n) if requested by any Holder of Registrable Securities, cause (i)
      its counsel to deliver an opinion and updates thereof relating to the
      Registrable Securities, containing opinions customary for transactions of
      this type and customary assumptions and qualifications, addressed to such
      Holders thereof and dated, in the case of the initial opinion, the
      effective date of such Registration Statement (it being agreed that the
      matters to be covered by such opinion shall include, without limitation,
      as of the date of the opinion and as of the effective date of the
      Registration Statement or most recent post-effective amendment thereto, as
      the case may be, a statement that it has not come to such counsel's
      attention that such Registration Statement and the prospectus included
      therein, as then amended or supplemented, and any documents incorporated
      by reference therein contain an untrue statement of a material fact or
      omit to state therein a material fact required to be stated therein or
      necessary to make the statements therein (in the case of the prospectus,
      in light of the circumstances under which they were made, and in the case
      of any such documents, in light of the circumstances existing at the time
      that such documents were filed with the SEC under the Exchange Act) not
      misleading); (ii) its independent public accountants to provide to the
      Holders a comfort letter in customary form and covering matters of the
      type customarily covered in comfort letters in connection with primary
      underwritten offerings, subject to receipt of appropriate documentation as
      contemplated, and only if permitted, by Statement of Auditing Standards
      No. 72; and (iii) use its reasonable best efforts to cause the disposition
      of the Registrable Securities covered by the Registration Statement to be
      registered with or approved by such other governmental agencies or
      authorities as may be necessary to enable the seller or sellers thereof to
      consummate the disposition of such Registrable Securities; provided,
      however, that the Company shall not be required to (i) qualify generally
      to do business in any jurisdiction where it is not then so qualified or
      (ii) take any action which would subject it to general service of process
      or to taxation in any jurisdiction where it is not then so subject.

      If any such Registration Statement refers to any Holder by name or
otherwise as the holder or any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance reasonably satisfactory to such Holder, to the effect that the holding
by such Holder of such securities is not to be construed as a recommendation by
such Holder of the investment quality of the Company's securities covered
thereby and that such holding does not imply that such Holder will assist in
meeting any future financial requirements of the Company, or (ii) in the event
that such reference to such Holder by name or otherwise is not required by the
Securities Act or any similar Federal statute then in force, the deletion of the
reference to such Holder in any amendment or supplement to the Registration
Statement filed or prepared subsequent to the time that such reference ceases to
be required.

      Section 4. Shelf Registration.

            (a) The Company shall use its reasonable best efforts to (i) on or
      before the Filing Date, prepare and cause to be filed with the SEC
      pursuant to Rule 415 under the Securities Act a shelf registration
      statement on the appropriate form relating to resales of all Registrable
      Securities (the "Shelf Registration Statement", (ii) cause the Shelf
      Registration Statement to be declared effective under the Securities Act
      on or prior to the

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      Effectiveness Date and (iii) keep any Shelf Registration Statement
      required by this Section 4(a) continuously effective, supplemented,
      amended and current as required by and subject to the provisions of
      Section 4(a) hereof and in conformity with the requirements of this
      Agreement, the Securities Act and the rules and regulations of the
      Commission promulgated thereunder from time to time (including (A)
      preparing and filing with the SEC such amendments and post-effective
      amendments to the Shelf Registration Statement as may be necessary to keep
      such Shelf Registration Statement effective; (B) cause the Prospectus to
      be supplemented by any required Prospectus supplement, and as so
      supplemented to be filed pursuant to Rule 424 under the Securities Act,
      and complying fully with Rules 424, 430A and 462, as applicable, under the
      Securities Act in a timely manner; and (C) comply with the provisions of
      the Securities Act with respect to the disposition of all securities
      covered by such Shelf Registration Statement), until the second
      anniversary of the effective date of such Shelf Registration Statement;
      provided that such obligation shall expire before such date if all the
      Registrable Securities covered by the Shelf Registration Statement (i)
      have been sold pursuant thereto or (ii) are no longer Restricted
      Securities.

            (b) No Holder may include any of its Registrable Securities in any
      Shelf Registration Statement pursuant to this Agreement unless and until
      such Holder furnishes to the Company in writing, within 20 business days
      after receipt of a request therefor, the information specified in Item 507
      or 508 of Regulation S-K, as applicable, of the Securities Act for use in
      connection with any Shelf Registration Statement or Prospectus or
      preliminary Prospectus included therein. Each selling Holder agrees to
      promptly furnish additional information required to be disclosed in order
      to make the information previously furnished to the Company by such Holder
      not materially misleading.

            (c) The Company shall be deemed not to have used its best efforts to
      keep the Shelf Registration Statement effective during the requisite
      period if it voluntarily takes any action that would result in Holders of
      Registrable Securities covered thereby not being able to offer and sell
      such Registrable Securities during that period, unless such action is
      required by applicable law or this Agreement.

      Section 5. Limitations, Conditions and Qualifications to Obligations under
Registration Covenants.

            (a) The obligations of the Company described in Section 4 and
      Section 6 of this Agreement are subject to the obligations of the Holders
      (i) to furnish all information and materials described in Section 3(k)
      hereof and (ii) to take any and all actions as may be required under
      Federal and state securities laws and regulations to permit the Company to
      comply with all applicable requirements of the SEC and to obtain any
      acceleration of the effective date of such Registration Statement.

            (b) Notwithstanding anything to the contrary in this Agreement,
      subject to the next sentence of this paragraph, the Company shall be
      entitled to postpone, for a reasonable period of time, the effectiveness
      of, or suspend the rights of any selling Holders Registrable Securities to
      make sales pursuant to any Registration Statement otherwise required to be
      prepared, filed and kept effective by it under Section 4 or 6 in

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      the event that, and for a period (a "Blackout Period") not to exceed an
      aggregate of 90 days in any 12-month period, the board of directors of the
      Company determines, in good faith, that (1) an event or circumstance
      occurs and is continuing as a result of which the Registration Statement,
      any related Prospectus or any document incorporated therein by reference
      as then amended or supplemented or proposed to be filed would, in the good
      faith judgment of the Company's board of directors, contain an untrue
      statement of a material fact or omit to state a material fact necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading, and (2) (a) the disclosure of
      an event, occurrence or other item at that time would reasonably be
      expected to have a material adverse effect on the Company's business,
      operations or prospects or (b) the disclosure otherwise relates to a
      material business transaction or development that has not yet been
      publicly disclosed and the board of directors also determines, in good
      faith, that any disclosure thereof would jeopardize the success of the
      transaction or that disclosure of the transaction is prohibited by the
      terms thereof. If the Company shall so postpone the effectiveness of, or
      suspend the rights of any selling Holders of Registrable Securities to
      make sales pursuant to, a Registration Statement, it shall, as promptly as
      possible, notify any selling Holders of Registrable Securities of such
      determination, and the selling Holders of Registrable Securities shall (x)
      have the right, in the case of a postponement of the effectiveness of a
      Registration Statement, upon the affirmative vote of selling Holders of
      Registrable Securities of not less than a majority of the Registrable
      Securities to be included in such Registration Statement, to withdraw the
      request for registration by giving written notice to the Company within 10
      days after receipt of such notice or (y) in the case of a suspension of
      the right to make sales, receive an extension of the registration period
      referred to in Section 4(a) or Section 6(a) hereof, as applicable, equal
      to the number of days of the suspension.

            (c) Each Holder agrees, if and to the extent requested by the
      managing underwriter or underwriters in a Public Equity Offering, not to
      effect any public sale or distribution of Resalable Securities, including
      a sale pursuant to Rule 144A (except as part of such Public Equity
      Offering), during the 90 day period beginning on the closing date of any
      such Public Equity Offering (which period may be extended to 180 days in
      the case of the Company's initial Public Equity Offering), to the extent
      timely notified in writing by the Company or such managing underwriter or
      underwriters. In the event that the Company is not otherwise in compliance
      with the provisions of this Agreement at the time the Company or such
      managing underwriter or underwriters send notice pursuant to this Section
      5(c), the Holders shall not be required to comply with this Section 5(c).
      In addition, the provisions of this Section 5(c) shall not apply to any
      Holder of Registrable Securities if such Holder is prevented by applicable
      statute or regulation from entering into any such agreement; provided,
      that any such Holder shall undertake not to effect any public sale or
      distribution of any Registrable Securities commencing on the closing date
      of any such Public Equity Offering unless it has provided 45 days' prior
      written notice of such sale or distribution to the managing underwriter or
      underwriters.

      Section 6. Piggy-Back Registration of Registrable Securities.

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            (a) If at any time after the Closing Date the Company proposes to
      file a registration statement under the Securities Act with respect to a
      Public Equity Offering, then the Company shall give written notice of such
      proposed filing to the Holders of Registrable Securities as soon as
      practicable (but in no event fewer than 20 days before the anticipated
      filing date), and such notice shall offer such Holders the opportunity to
      register such number of Registrable Securities as each Holder may request
      in writing within 10 business days after receipt of such written notice
      from the Company (which request shall specify the Registrable Securities
      intended to be disposed of by such selling Holder of Registrable
      Securities and the intended method of distribution thereof) (a "Piggy-Back
      Registration"); provided that any holder of Warrants so requesting shall
      agree, upon or prior to effectiveness of any such Registration Statement
      other than a registration statement filed with the SEC pursuant to Rule
      415 under the Securities Act (but in no event earlier than the Separation
      Date (as defined in the Warrant Agreement)), to exercise their Warrants at
      least to the extent necessary for such holder to acquire the number of
      Registrable Securities for which such holder has requested registration;
      provided, further, that no Holder of Registrable Securities shall have
      "piggy-back" registration rights with respect to their Registrable
      Securities for any registration statement filed by the Company to register
      exchange notes for the Notes pursuant to the Registration Rights
      Agreement, dated as of June 29, 2004, by and between the Company and the
      Initial Purchaser. The Company shall use its reasonable best efforts to
      keep such Piggy-Back Registration continuously effective under the
      Securities Act until at least the earlier of (a) the second anniversary of
      the effective date thereof or (b) the consummation of the distribution by
      the Holders of all of the Registrable Securities covered thereby. The
      Company shall use its reasonable best efforts to cause the managing
      underwriter or underwriters, if any, of such proposed offering to permit
      the Registrable Securities requested to be included in a Piggy-Back
      Registration to be included on the same terms and conditions as any
      similar securities of the Company or any other security holder included
      therein and to permit the sale or other disposition of such Registrable
      Securities in accordance with the intended method of distribution thereof.
      Any selling Holder of Registrable Securities shall have the right to
      withdraw its request for inclusion of its Registrable Securities in any
      Shelf Registration Statement pursuant to this Section 6 by giving written
      notice to the Company of its request to withdraw a reasonable time prior
      to the filing of such Shelf Registration Statement with the SEC. The
      Company will pay all registration expenses described in Section 7 hereof
      in connection with each registration of Registrable Securities requested
      pursuant to this Section 6, and each Holder of Registrable Securities
      shall pay all underwriting discounts and commissions and transfer taxes,
      if any, relating to the sale or disposition of such Holder's Registrable
      Warrant Shares pursuant to a Piggy-Back Registration effected pursuant to
      this Section 6.

            No registration effected under this Section 6, and no failure to
      effect a registration under this Section 6, shall relieve the Company of
      its obligations to effect a registration pursuant to Section 4 hereof of
      any Registrable Securities not included in such Piggy-Back Registration,
      and no failure to effect a registration required under this Section 6 and
      to complete the sale of securities registered thereunder in connection
      therewith shall relieve the Company of any other obligation under this
      Agreement.

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            (b) Priority in Piggy-Back Registration. In a registration pursuant
      to this Section 6 involving an underwritten offering, if the managing
      underwriter or underwriters of such underwritten offering have informed,
      in writing, the Company and the selling Holders of Registrable Securities
      requesting inclusion in such offering that in such underwriter's or
      underwriters' opinion the total number of securities which the Company,
      the selling Holders of Registrable Securities and any other Persons
      desiring to participate in such registration intend to include in such
      offering is such as to adversely affect the success of such offering,
      including the price at which such securities can be sold, then the Company
      will be required to include in such registration only the amount of
      securities which it is so advised should be included in such registration.
      In such event: (x) in cases initially involving the registration for sale
      of securities for the Company's own account, securities shall be
      registered in such offering in the following order of priority: (i) first,
      the securities which the Company proposes to register, (ii) second,
      provided that no securities proposed to be registered by the Company have
      been excluded from such registration, the securities that have been
      requested to be included in such registration statement by the holders
      (collectively, the "Existing Holders") of Registrable Securities (as
      defined in that certain Registration Rights Agreement by and among the
      Company and High River Limited Partnership, Debt Strategies Fund, Inc. and
      Northeast Investors Trust, dated as fo April 15, 2003, (iii) third,
      provided that no securities sought to be included by the Existing Holders
      have been excluded from such registration, the securities that have been
      requested to be included in such registration by the selling Holders of
      Registrable Securities (pro rata based on the amount of securities sought
      to be registered by such Persons) pursuant to this Agreement, and (iii)
      fourth, provided that no securities sought to be included by the selling
      Holders of Registrable Securities have been excluded from such
      registration, the securities of other Persons entitled to exercise
      "piggy-back" registration rights pursuant to contractual commitments of
      the Company (pro rata based on the amount of securities sought to be
      registered by such Persons); and (y) in cases initially involving the
      registration for sale of securities pursuant to demand registration
      rights, securities shall be registered in such offering in the following
      order of priority: (i) first, the securities of any Person whose exercise
      of a "demand" registration right pursuant to a contractual commitment of
      the Company is the basis for the registration, (ii) second, provided that
      no securities of any Person whose exercise of a "demand" registration
      right pursuant to a contractual commitment of the Company is the basis for
      such registration have been excluded from such registration, the
      securities requested to be included in such registration by the Existing
      Holders, (iii) third, provided that no securities sought to be included by
      the Existing Holders have been excluded from such registration, the
      securities requested to be included in such registration by the selling
      Holders of Registrable Securities pursuant to this Agreement (pro rata
      based on the amount of securities sought to be registered by such
      Persons), (iv) fourth, provided that no securities sought to be included
      by the selling Holders of Registrable Securities have been excluded from
      such registration, securities of other Persons entitled to exercise
      "piggy-back" registration rights pursuant to contractual commitments of
      the Company (pro rata based on the amount of securities sought to be
      registered by such Persons) and (v) fifth, provided that no securities
      sought to be included by other Persons entitled to exercise "piggy-back"
      registration rights pursuant to such contractual commitments have

                                      -10-

<PAGE>

      been excluded from such registration, any securities which the Company
      proposes to register.

            (c) Exclusion of Registrable Warrant Shares. The Company shall not
      be required by this Section 6 to include Registrable Securities in a
      Piggy-Back Registration if (i) in the written opinion of outside counsel
      to the Company, addressed to the Holders of Registrable Securities and
      delivered to them, the Holders of such Registrable Securities seeking
      registration would be free to sell all such Registrable Securities within
      the current calendar quarter without registration under Rule 144, which
      opinion may be based in part upon the representation by the Holders of
      such Registrable Securities seeking registration, which representation
      shall not be unreasonably withheld, that each such Holder is not an
      affiliate of the Company within the meaning of the Securities Act, and
      (ii) all requirements under the Securities Act for effecting such sales
      are satisfied at such time.

      Section 7. Registration Expenses.

      (a) All expenses incurred by the Company in connection with its
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement is ever filed or becomes
effective, including without limitation:

            (i) all registration and filing fees and expenses (including all SEC
      and stock exchange and NASD fees and expenses);

            (ii) all fees and expenses of compliance with federal securities and
      state "blue sky" or securities laws (including, without limitation,
      reasonable fees and disbursements of counsel for any underwriters in
      connection with blue sky qualifications of the Registrable Securities);

            (iii) all expenses of printing, preparing, filing, duplicating and
      distributing a Registration Statement and the related prospectus
      (including certificates for the Securities to be issued in the
      registration and printing of Prospectuses) requested in accordance with
      this Agreement,

            (iv) messenger and delivery services and telephone usage and costs
      and charges of any transfer agent;

            (v) all fees and disbursements of counsel for the Company;

            (vi) all fees and disbursements of independent certified public
      accountants of the Company (including the expenses of any special audit
      required by or incident to such performance);

            (vii) the fees and commissions of underwriters customarily paid by
      issuers or sellers of securities (but not including any underwriting
      discounts or commissions or transfer taxes, if any, attributable to the
      sale of Registrable Securities by selling Holders);

                                      -11-

<PAGE>

            (viii) fees and expenses of one counsel for the selling Holders and
      other reasonable out-of-pocket expenses of the selling holders not to
      exceed $15,000 in the aggregate;

            (ix) Securities Act liability insurance, if the Company desires such
      insurance;

            (x) the fees and expenses of all other Persons retained by the
      Company;

            (xi) fees and expenses of any "qualified independent underwriter" or
      other independent appraiser participating in an offering pursuant to
      Section 3 of Schedule E to the By-laws of the NASD, but only where such a
      "qualified independent underwriter" is required due to a relationship with
      the Company;

            (xii) internal expenses of the Company (including, without
      limitation, all salaries and expenses of officers and employees of the
      Company performing legal or accounting duties);

            (xiii) the expense of any annual audit;

            (xiv) the fees and expenses of the Trustee and the Exchange Agent;
      and

            (xv) the expenses relating to printing, word processing and
      distributing all Registration Statements, underwriting agreements,
      securities sales agreements, indentures and any other documents necessary
      in order to comply with this Agreement.

      (b) The Company will bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and
expenses of any Person, including special experts, retained by the Company.

      (c) The Holders shall pay the underwriting discounts, commissions, and
transfer taxes, if any, in connection with the Registration Statement requested
under Section 4 or 6, which costs shall be allocated pro rata among all Holders
on whose behalf Registrable Securities of the Company are included in such
registration on the basis of the respective amounts of the Registrable
Securities then being registered on their behalf.

      Section 8. Indemnification.

      (a) The Company agrees to indemnify and hold harmless each Holder and each
Person, if any, who controls such Holder within the meaning of the Securities
Act or the Exchange Act from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including, but
not limited to, any losses, claims, damages, liabilities or actions relating to
purchases and sales of the Registrable Securities) to which each Indemnified
Party (as defined in Section 8(c) below) may become subject under the Securities
Act, the Exchange Act or otherwise, insofar as such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement or
alleged untrue statement of a material fact contained in the Registration
Statement or Prospectus or in any amendment or supplement thereto or in any
preliminary Prospectus relating to a Registration, or arise out of, or are based
upon, 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 case of
the Prospectus, in light of the circumstances under which they were made) not
misleading, except to the extent that Losses are based upon information relating
to such Holder or

                                      -12-

<PAGE>

Participating Broker-Dealer and furnished in writing to the Company (or reviewed
and approved in writing) by or on behalf of such Holder or Participating
Broker-Dealer or their counsel expressly for use therein, and shall reimburse,
as incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; provided, however, that
(i) the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
the Registration Statement or Prospectus or in any amendment or supplement
thereto or in any preliminary Prospectus relating to a Registration Statement in
reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein and (ii) with respect to any untrue statement or omission
or alleged untrue statement or omission made in any preliminary Prospectus
relating to the Registration Statement, the indemnity agreement contained in
this subsection (a) shall not inure to the benefit of any Holder from whom the
Person asserting any such losses, claims, damages or liabilities purchased the
Registrable Securities concerned, to the extent that the Prospectus was required
to be delivered by such Holder under the Securities Act in connection with such
purchase and any such loss, claim, damage or liability of such Holder results
from the fact that there was not sent or given to such Person, at or prior to
the written confirmation of the sale of such Registrable Securities to such
Person, a copy of the final Prospectus if the Company had previously furnished
copies thereof to such Holder; provided further, however, that this indemnity
agreement will be in addition to any liability which the Company may otherwise
have to such Indemnified Party.

      (b) Each Holder of the Registrable Securities, severally and not jointly,
will indemnify and hold harmless the Company and each Person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act from and against any and all losses, claims, damages or liabilities or any
actions in respect thereof, to which the Company or any such controlling Person
may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in a Registration Statement or Prospectus or in any amendment or
supplement thereto or in any preliminary Prospectus relating to a Registration
Statement, or arise out of or are based upon the omission or alleged omission to
state therein a material fact necessary to make the statements therein (in the
case of the Prospectus, in light of the circumstances under which they were
made) not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in
reliance upon and in conformity with written information pertaining to such
Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein; and, subject to the limitation set forth immediately
preceding this clause, shall reimburse, as incurred, the Company for any legal
or other expenses reasonably incurred by the Company or any such controlling
Person in connection with investigating or defending any loss, claim, damage,
liability or action in respect thereof. This indemnity agreement will be in
addition to any liability which such Holder may otherwise have to the Company or
any of its controlling Persons.

      (c) Promptly after receipt by any Person in respect of which indemnity may
be sought pursuant to Section 8(a) or (b) (any such Person, an "Indemnified
Party") under this Section 8 of notice of the commencement of any action or
proceeding (including a governmental investigation), such Indemnified Party
will, if a claim in respect thereof is to be made against the

                                      -13-

<PAGE>

indemnifying party under this Section 8, notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying party will
not, in any event, relieve the indemnifying party from any obligations to any
Indemnified Party other than the indemnification obligation provided in
paragraph (a) or (b) above. 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 therein and, to
the extent that it may wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to
such Indemnified Party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), 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 8 for any legal or other expenses, other
than reasonable costs of investigation, subsequently incurred by such
Indemnified Party in connection with the defense thereof. No indemnifying party
shall, without the prior written consent of the Indemnified Party, effect any
settlement of any pending or threatened action in respect of which any
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party unless such settlement includes an
unconditional release of such Indemnified Party from all liability on any claims
that are the subject matter of such action, and does not include a statement as
to or an admission of fault, culpability or a failure to act by or on behalf of
any Indemnified Party. The indemnifying party shall not be liable for the costs
and expenses of any settlement of such action effected by such Indemnified Party
without the consent of the indemnifying party, which consent shall not be
unreasonably withheld.

      (d) If the indemnification provided for in this Section 8 is unavailable
or insufficient to hold harmless an Indemnified Party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or
payable by such Indemnified Party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) covered by subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits
received by the indemnifying party or parties on the one hand and the
Indemnified Party on the other from the sale of the Registrable Securities by
the Holders, or (ii) if the allocation provided by the foregoing clause (i) is
not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the indemnifying party or parties on the one hand and the
Indemnified Party on the other in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof) covered by subsection (a) or (b) above as well as any other
relevant equitable considerations. The relative fault of the parties 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 such Holder or such other Indemnified Party, as the case may be, on the
other, and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The amount paid by
an Indemnified Party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any action or claim which is
the subject of this subsection (d). Notwithstanding any other provision of this
Section 8(d), the Holders of the Registrable Securities shall not be required to
contribute any amount in excess of the amount by which the net proceeds received
by such Holders from

                                      -14-

<PAGE>

the sale of the Registrable Securities pursuant to the Registration Statement
exceeds the amount of damages which such Holders have otherwise been required to
pay (and for which it was entitled to indemnification hereunder) by reason of
such untrue or alleged untrue statement or omission or alleged omission and with
respect to which such Holder was entitled to indemnification hereunder. 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. For purposes of this
paragraph (d), each Person, if any, who controls such Indemnified Party within
the meaning of the Securities Act or the Exchange Act shall have the same rights
to contribution as such Indemnified Party, and each Person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as the Company.

      (e) The agreements contained in this Section 8 shall survive the sale of
the Registrable Securities pursuant to the Registration Statement and shall
remain in full force and effect, regardless of any termination or cancellation
of this Agreement or any investigation made by or on behalf of any Indemnified
Party.

      Section 9. Rule 144A and Rule 144.

      Subject to the Indenture, the Company shall file the reports required to
be filed by it under the Securities Act and the Exchange Act in a timely manner
and, if at any time the Company is not required to file such reports, it will,
upon the request of any Holder, make publicly available other information so
long as necessary to permit sales of their securities pursuant to Rules 144 and
144A. The Company covenants that it will take such further action as any Holder
may reasonably request, all to the extent required from time to time to enable
such Holder to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rules 144 and
144A (including the requirements of Rule 144A(d)(4)). The Company will provide a
copy of this Agreement to prospective purchasers of Registrable Securities
identified to the Company by the Initial Purchaser upon request. Upon the
request of any Holder, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements. Notwithstanding
the foregoing, nothing in this Section 9 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act.

      Section 10. Miscellaneous.

      (a) Remedies. The Company acknowledges and agrees that any failure by the
Company to comply with its obligations under Section 4 and Section 6 hereof may
result in material irreparable injury to the Holders for which there is no
adequate remedy at law, that it will not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, any Holder may
obtain such relief as may be required to specifically enforce the Company's
obligations under Section 4 and Section 6 hereof.

      (b) No Inconsistent Agreements. The Company will not on or after the date
of this Agreement enter into any agreement with respect to its securities that
is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not

                                      -15-

<PAGE>

inconsistent with the rights granted to the holders of the Company's securities
under any agreement in effect on the date hereof.

      (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority of the Registrable Securities affected by
such amendment, modification, supplement, waiver or consent.

      (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class mail,
facsimile transmission, or air courier which guarantees overnight delivery:

                  (1) if to a Holder of the Securities, at the most current
            address given by such Holder to the Company or Warrant Agent.

                  (2) if to the Company, at the address as follows:

                        625 Willowbrook Centre
                        Willowbrook, Illinois 60527
                        Telephone No. (630) 789-4900

                        with a copy (which shall not constitute notice) to:

                        Jenner & Block LLC
                        One IBM Plaza
                        Chicago, IL 60611
                        Facsimile No.: (312) 527-0484
                        Attention: Thomas A. Monson, Esq

                  (3) if to the Warrant Agent, at its address as follows:

                        Wells Fargo Bank, N.A.
                        Corporate Trust Services
                        Sixth and Marquette
                        MAC N9303-120
                        Minneapolis, MN 55479
                        Facsimile: 612-667-9825
                        Attention: Jane Y. Schweiger

      All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged by recipient's facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

      (e) Third Party Beneficiaries. It is expressly understood and agreed that
each Holder is intended to be a beneficiary of the Company's covenants contained
in this Agreement to the

                                      -16-

<PAGE>

same extent as if those covenants were made directly to such Holder by the
Company, and each such Holder shall have the right to take action against the
Company to enforce, and obtain damages for any breach of, those covenants.

      (f) Successors and Assigns. This Agreement shall be binding upon the
Company, the Initial Purchaser and each of their successors and assigns.

      (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

      (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

      (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.

      (j) Severability. If any one or more of the provisions contained herein,
or the application thereof in any circumstance, is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any such provision
in every other respect and of the remaining provisions contained herein shall
not be affected or impaired thereby.

      (k) Securities Held by the Company. Whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required
hereunder, Registrable Securities held by the Company or its Affiliates (other
than subsequent Holders of Registrable Securities if such subsequent Holders are
deemed to be Affiliates solely by reason of their holdings of such Registrable
Securities) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

                            [Signature Page Follows]

                                     -17-

<PAGE>

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

                                         VISKASE COMPANIES, INC.

                                         By: /s/ Gordon S. Donovan
                                             -----------------------------------
                                             Name: Gordon S. Donovan
                                             Title: Vice President

                                       18   EQUITY REGISTRATION RIGHTS AGREEMENT

<PAGE>

JEFFERIES & COMPANY, INC.

By: /s/ Andrew Whittaker
    --------------------------
    Name: Andrew Whittaker
    Title: Vice Chairman

                                      -19-  EQUITY REGISTRATION RIGHTS AGREEMENT<PAGE>

                                                                     EXHIBIT 4.5

                                                                  EXECUTION COPY

                             VISKASE COMPANIES, INC.

                              Warrants to Purchase
                             Shares of Common Stock

                                WARRANT AGREEMENT

                            Dated as of June 29, 2004

                     WELLS FARGO BANK, NATIONAL ASSOCIATION

                                  Warrant Agent

<PAGE>

      WARRANT AGREEMENT, dated as of June 29, 2004 (this "Agreement"), between
Viskase Companies, Inc., a Delaware corporation (the "Company"), and Wells Fargo
Bank, National Association, as warrant agent (the "Warrant Agent").

      WHEREAS, the Company proposes to issue warrants (the "Warrants") to
initially purchase up to an aggregate of 805,230 shares of common stock, par
value $0.01 per share (the "Common Stock"), of the Company (the Common Stock
issuable on exercise of the Warrants being referred to herein as the "Warrant
Shares"), each Warrant initially representing the right to purchase 8.947
Warrant Shares, in connection with the offering (the "Offering") by the Company
of 90,000 units (the "Units"), each Unit consisting of (i) $1,000 principal
amount at maturity of the 11 -1/2% Senior Secured Notes due 2011 of the Company
(the "Notes") and (ii) one Warrant.

      WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing so to act in connection with the
issuance of Warrant Certificates (as defined) and other matters as provided
herein.

      WHEREAS, the Company has entered into that certain Capital Equity
Registration, Rights Agreement, dated as of June 29, 2004, between the Company
and Jefferies & Company, Inc. for the benefit of holders of the Warrants.

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

      Section 1. Certain Definitions.

      As used in this Agreement, the following terms shall have the following
respective meanings:

      "144A Global Warrant" means a global Warrant substantially in the form of
Exhibit A hereto bearing the Global Warrant Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee.

      "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control,"
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" have correlative meanings.

      "Applicable Procedures" means, with respect to any transfer or exchange of
or for beneficial interests in any Global Warrant, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.

<PAGE>

      "Board of Directors" means, as to any Person, the board of directors or
similar governing body of such Person or any duly authorized committee thereof.

      "Business Day" means any day other than a Legal Holiday.

      "Clearstream" means Clearstream Banking, S.A.

      "Closing Date" means the date hereof.

      "Definitive Warrant" means a Warrant Certificate issued in registered form
as a definitive Warrant Certificate.

      "Depositary" means, with respect to the Warrants issuable or issued in
whole or in part in global form, the Person specified in Section 3.3 hereof as
the Depositary with respect to the Warrants, and any and all successors thereto
appointed as Depositary hereunder and having become such pursuant to the
applicable provision of this Agreement.

      "Equity Registration Rights Agreement" means the registration rights
agreement, dated as of June 29, 2004, by and among the Company and the Initial
Purchaser relating to the Warrant Shares.

      "Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
system.

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

      "Exercise Price" means the amount set forth in the form of Warrant
Certificate attached hereto as Exhibit A, as adjusted as herein provided.

      "Global Warrants" means, individually and collectively, each of the
Restricted Global Warrants and the Unrestricted Global Warrants, substantially
in the form of Exhibit A hereto issued in accordance with Section 3.1(b) and 3.5
hereof.

      "Global Warrant Legend" means the legend set forth in Section 3.5(f)(ii),
which is required to be placed on all Global Warrants issued under this
Agreement.

      "IAI Global Warrant" means the Global Warrant substantially in the form of
Exhibit A hereto bearing the Global Warrant Legend and the Private Placement
Legend and deposited with or on behalf of and registered in the name of the
Depositary or its nominee.

      "Indenture" means the indenture, dated as of June 29, 2004, among the
Company, the Guarantors set forth therein and LaSalle Bank, National
Association, as trustee, relating to the Notes.

      "Indirect Participant" means a Person who holds a beneficial interest in a
Global Warrant through a Participant.

      "Initial Purchaser" means Jefferies & Company, Inc.

                                      -2-

<PAGE>

      "Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, which is not also a QIB.

      "Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York, the city in which the corporate trust
office of the Warrant Agent is located or at a place of payment are authorized
by law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

      "Non-U.S. Person" means any Person other than a U.S. Person.

      "Officer" means, with respect to any Person, means the Chief Executive
Officer, the President, the Chief Financial Officer, any Vice President or the
Treasurer of such Person.

      "Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Warrant Agent in form and substance reasonably acceptable to
the Warrant Agent. The counsel may without limitation be an employee of or
counsel to the Company, any subsidiary of the Company or the Warrant Agent.

      "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

      "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited
liability company or government or other entity.

      "Private Placement Legend" means the legend set forth in Section 3.5(f)(i)
to be placed on all Warrants issued under this Warrant Agreement except where
otherwise permitted by the provisions of this Warrant Agreement.

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

      "Registrable Security" means, at any time, any of (i) the Warrant Shares
(whether or not the related Warrants have been exercised) and (ii) any other
securities issued or issuable with respect to any Warrant Shares by way of stock
dividends or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization or otherwise. As
to any particular Registrable Securities, such securities shall cease to be
Registrable Securities when (a) a registration statement with respect to the
offering of such securities by the holder thereof shall have been declared
effective under the Securities Act and such securities shall have been disposed
of by such holder pursuant to such registration statement, (b) such securities
have been sold to the public pursuant to Rule 144(k) (or any similar provisions
then in force, but not Rule 144A) promulgated under the Securities Act, (c) such
securities shall have been otherwise transferred by the holder thereof and new
certificates for such securities not bearing a legend restricting further
transfer shall have been delivered by the Company or its transfer agent and
subsequent disposition of such securities shall not require

                                      -3-

<PAGE>

registration or qualification under the Securities Act or any similar state law
then in force or (d) such securities shall have ceased to be outstanding.

      "Regulation S" means Regulation S promulgated under the Securities Act.

      "Regulation S Global Warrant" means a Global Warrant in the form of
Exhibit A hereto bearing the Global Warrant Legend, the Private Placement Legend
and the Regulation S Legend and deposited with or on behalf of and registered in
the name of the Depositary or its nominee.

      "Regulation S Legend" means the legend set forth in Section 3.5(f)(iv) to
be placed on all Regulation S Global Warrants issued pursuant to Regulation S.

      "Restricted Definitive Warrant" means a Definitive Warrant bearing the
Private Placement Legend.

      "Restricted Global Warrant" means a Global Warrant bearing the Private
Placement Legend.

      "Rule 144" means Rule 144 promulgated under the Securities Act.

      "Rule 144A" means Rule 144A promulgated under the Securities Act.

      "Rule 903" means Rule 903 promulgated under the Securities Act.

      "Rule 904" means Rule 904 promulgated under the Securities Act.

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

      "Separation Date" means the earliest of (i) 180 days following the
consummation of the offering of the Units, (ii) the date on which a registration
statement for a registered exchange offer with respect to the Notes is declared
effective under the Securities Act, (iii) the date on which a shelf registration
statement with respect to the Warrant Shares is declared effective under the
Securities Act and (iv) such date as Jefferies & Company, Inc., as the initial
purchaser of the Units, in its sole discretion shall determine.

      "Trustee" means the trustee under the Indenture.

      "Unrestricted Global Warrant" means a Global Warrant that does not bear
the Private Placement Legend.

      "Unrestricted Definitive Warrant" means one or more Definitive Warrants
that do not bear and are not required to bear the Private Placement Legend.

      "U.S. Person" means a U.S. person as defined in Rule 902(k) under the
Securities Act.

      "Warrant Paying Agent" means an office or agency where Warrants may be
presented for surrender. The Company initially appoints the Warrant Agent to act
as Warrant Paying Agent.

                                      -4-

<PAGE>

      Section 2. Appointment of Warrant Agent.

      The Company hereby appoints the Warrant Agent to act as agent for the
Company in accordance with the instructions set forth hereinafter in this
Agreement and the Warrant Agent hereby accepts such appointment.

      Section 3. Issuance of Warrants; Warrant Certificates.

      3.1. Form and Dating.

      (a) General. The Warrants shall be substantially in the form of Exhibit A
hereto (each a "Warrant Certificate"). The Warrants may have notations, legends
or endorsements required by law, stock exchange rule or usage. Each Warrant
shall be dated the date of the countersignature.

      The terms and provisions contained in the Warrants shall constitute, and
are hereby expressly made, a part of this Warrant Agreement. The Company and the
Warrant Agent, by their execution and delivery of this Warrant Agreement,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Warrant conflicts with the express provisions
of this Warrant Agreement, the provisions of this Warrant Agreement shall govern
and be controlling.

      (b) Global Warrants. Warrants issued in global form shall be substantially
in the form of Exhibit A attached hereto (including the Global Warrant Legend
thereon and the "Schedule of Exchanges of Interests in the Global Warrant"
attached thereto). Warrants issued in definitive form shall be substantially in
the form of Exhibit A attached hereto (but without the Global Warrant Legend
thereon and without the "Schedule of Exchanges of Interests in the Global
Warrant" attached thereto). Each Global Warrant shall represent such of the
outstanding Warrants as shall be specified therein and each shall provide that
it shall represent the number of outstanding Warrants from time to time endorsed
thereon and that the number of outstanding Warrants represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Warrant to reflect the amount of any
increase or decrease in the number of outstanding Warrants represented thereby
shall be made by the Warrant Agent in accordance with instructions given by the
holder thereof as required by Section 3.5 hereof.

      (c) Euroclear and Clearstream Procedures Applicable. The provisions of the
"Operating Procedures of the Euroclear System" and "Terms and Conditions
Governing Use of Euroclear" and the "General Terms and Conditions of Clearstream
Banking" and "Customer Handbook" of Clearstream shall be applicable to transfers
of beneficial interests in the Regulation S Global Warrant that are held by
Participants through Euroclear or Clearstream.

      3.2. Execution.

      An Officer shall sign the Warrants on behalf of the Company by manual or
facsimile signature.

                                      -5-

<PAGE>

      If the Officer whose signature is on a Warrant no longer holds that office
at the time a Warrant is countersigned, the Warrant shall nevertheless be valid.

      A Warrant shall not be valid until countersigned by the manual signature
of the Warrant Agent. The signature shall be conclusive evidence that the
Warrant has been properly issued under this Warrant Agreement.

      The Warrant Agent shall, upon a written order of the Company signed by an
Officer (a "Warrant Countersignature Order"), countersign Warrants for original
issue up to the number stated in the preamble hereto.

      The Warrant Agent may appoint an agent acceptable to the Company to
countersign Warrants. Such an agent may countersign Warrants whenever the
Warrant Agent may do so. Each reference in this Warrant Agreement to a
countersignature by the Warrant Agent includes a countersignature by such agent.
Such an agent has the same rights as the Warrant Agent to deal with the Company
or an Affiliate of the Company.

      3.3. Warrant Registrar and Depositary.

      The Company shall maintain an office or agency where Warrants may be
presented for registration of transfer or for exchange ("Warrant Registrar").
The Warrant Registrar shall keep a register of the Warrants and of their
transfer and exchange. The Company may appoint one or more co-Warrant
Registrars. The term "Warrant Registrar" includes any co-Warrant Registrar. The
Company may change any Warrant Registrar without notice to any holder. The
Company shall notify the Warrant Agent in writing of the name and address of any
agent not a party to this Warrant Agreement. If the Company fails to appoint or
maintain another entity as Warrant Registrar, the Warrant Agent shall act as
such. The Company or any of its subsidiaries may act as Warrant Registrar.

      The Company initially appoints the Warrant Agent to act as the Warrant
Registrar with respect to the Global Warrants.

      The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Warrants.

      3.4. Holder Lists.

      The Warrant Agent shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all holders of Warrants. If the Warrant Agent is not the Warrant Registrar, the
Company shall promptly furnish to the Warrant Agent at such times as the Warrant
Agent may request in writing, a list in such form and as of such date as the
Warrant Agent may reasonably require of the names and addresses of the holders
as set forth in the Company's books and records.

      3.5. Transfer and Exchange.

      (a) Transfer and Exchange of Global Warrants. A Global Warrant may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of

                                      -6-

<PAGE>

the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary. All Global Warrants will be exchanged by the Company
for Definitive Warrants if (i) the Company delivers to the Warrant Agent notice
from the Depositary that it is unwilling or unable to continue to act as
Depositary or that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary or
(ii) the Company in its sole discretion determines that the Global Warrants (in
whole but not in part) should be exchanged for Definitive Warrants and delivers
a written notice to such effect to the Warrant Agent. Upon the occurrence of
either of the preceding events in (i) or (ii) above, Definitive Warrants shall
be issued in such names as the Depositary shall instruct the Warrant Agent.
Global Warrants also may be exchanged or replaced, in whole or in part, as
provided in Sections 3.6 and 3.7 hereof. A Global Warrant may not be exchanged
for another Warrant other than as provided in this Section 3.5(a), however,
beneficial interests in a Global Warrant may be transferred and exchanged as
provided in Section 3.5(b) or (c) hereof.

      (b) Transfer and Exchange of Beneficial Interests in the Global Warrants.
The transfer and exchange of beneficial interests in the Global Warrants shall
be effected through the Depositary, in accordance with the provisions of this
Warrant Agreement and the Applicable Procedures. Beneficial interests in the
Restricted Global Warrants shall be subject to restrictions on transfer
comparable to those set forth herein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Warrants also shall require
compliance with either subparagraph (i) or (ii) below, as applicable, as well as
one or more of the other following subparagraphs, as applicable:

            (i) Transfer of Beneficial Interests in the Same Global Warrant.
      Beneficial interests in any Restricted Global Warrant may be transferred
      to Persons who take delivery thereof in the form of a beneficial interest
      in the same Restricted Global Warrant in accordance with the transfer
      restrictions set forth in the Private Placement Legend. Beneficial
      interests in any Unrestricted Global Warrant may be transferred to Persons
      who take delivery thereof in the form of a beneficial interest in an
      Unrestricted Global Warrant. No written orders or instructions shall be
      required to be delivered to the Warrant Registrar to effect the transfers
      described in this Section 3.5(b)(i).

            (ii) All Other Transfers and Exchanges of Beneficial Interests in
      Global Warrants. In connection with all transfers and exchanges of
      beneficial interests that are not subject to Section 3.5(b)(i) above, the
      transferor of such beneficial interest must deliver to the Warrant
      Registrar both (A) (1) a written order from a Participant or an Indirect
      Participant given to the Depositary in accordance with the Applicable
      Procedures directing the Depositary to credit or cause to be credited a
      beneficial interest in another Global Warrant in an amount equal to the
      beneficial interest to be transferred or exchanged and (2) instructions
      given in accordance with the Applicable Procedures containing information
      regarding the Participant account to be credited with such increase or
      both (B) (1) a written order from a Participant or an Indirect Participant
      given to the Depositary in accordance with the Applicable Procedures
      directing the Depositary to cause to be issued a Definitive Warrant in an
      amount equal to the beneficial interest to be

                                      -7-

<PAGE>

      transferred or exchanged and (2) instructions given by the Depositary to
      the Warrant Registrar containing information regarding the Person in whose
      name such Definitive Warrant shall be registered. Upon satisfaction of all
      of the requirements for transfer or exchange of beneficial interests in
      Global Warrants contained in this Agreement and the Warrants or otherwise
      applicable under the Securities Act, the Warrant Agent shall adjust the
      principal amount of the relevant Global Warrant(s) pursuant to Section
      3.5(g) hereof.

            (iii) Transfer of Beneficial Interests to Another Restricted Global
      Warrant. A beneficial interest in any Restricted Global Warrant may be
      transferred to a Person who takes delivery thereof in the form of a
      beneficial interest in another Restricted Global Warrant if the transfer
      complies with the requirements of Section 3.5(b)(ii) above and the Warrant
      Registrar receives the following:

                  (A) if the transferee will take delivery in the form of a
            beneficial interest in the 144A Global Warrant, then the transferor
            must deliver a certificate in the form of Exhibit B hereto,
            including the certifications in item (1) thereof; and

                  (B) if the transferee will take delivery in the form of a
            beneficial interest in the Regulation S Global Warrant, then the
            transferor must deliver a certificate in the form of Exhibit B
            hereto, including the certifications in item (2) thereof, if

                  (C) if the transferee will take delivery in the form of a
            beneficial interest in the IAI Global Warrant, then the transferor
            must deliver a certificate in the form of Exhibit B hereto,
            including the certifications and certificates and Opinion of Counsel
            required by item (3) thereof, if applicable.

            (iv) Transfer and Exchange of Beneficial Interests in a Restricted
      Global Warrant for Beneficial Interests in the Unrestricted Global
      Warrant. A beneficial interest in any Restricted Global Warrant may be
      exchanged by any holder thereof for a beneficial interest in an
      Unrestricted Global Warrant or transferred to a Person who takes delivery
      thereof in the form of a beneficial interest in an Unrestricted Global
      Warrant if the exchange or transfer complies with the requirements of
      Section 3.5(b)(ii) above and the Warrant Registrar receives the following:

                  (A) if the holder of such beneficial interest in a Restricted
            Global Warrant proposes to exchange such beneficial interest for a
            beneficial interest in an Unrestricted Global Warrant, a certificate
            from such holder in the form of Exhibit C hereto, including the
            certifications in item (1)(a) thereof; or

                  (B) if the holder of such beneficial interest in a Restricted
            Global Warrant proposes to transfer such beneficial interest to a
            Person who shall take delivery thereof in the form of a beneficial
            interest in an Unrestricted Global Warrant, a certificate from such
            holder in the form of Exhibit B hereto, including the certifications
            in item (4) thereof;

                                      -8-

<PAGE>

      and, in each such case set forth in this subparagraph (iv), if the Warrant
      Registrar so requests or if the Applicable Procedures so require, an
      Opinion of Counsel in form reasonably acceptable to the Warrant Registrar
      to the effect that such exchange or transfer is in compliance with the
      Securities Act and that the restrictions on transfer contained herein and
      in the Private Placement Legend are no longer required in order to
      maintain compliance with the Securities Act.

      If any such transfer is effected pursuant to subparagraph (iv) above at a
time when an Unrestricted Global Warrant has not yet been issued, the Company
shall issue and, upon receipt of an Warrant Countersignature Order in accordance
with Section 3.2 hereof, the Warrant Agent shall countersign one or more
Unrestricted Global Warrants in the number equal to the number of beneficial
interests transferred pursuant to subparagraph (iv) above.

      (c) Transfer and Exchange of Beneficial Interests for Definitive Warrants.

            (i) Beneficial Interests in Restricted Global Warrants to Restricted
      Definitive Warrants. If any holder of a beneficial interest in a
      Restricted Global Warrant proposes to exchange such beneficial interest
      for a Restricted Definitive Warrant or to transfer such beneficial
      interest to a Person who takes delivery thereof in the form of a
      Restricted Definitive Warrant, then, upon receipt by the Warrant Registrar
      of the following documentation:

                  (A) if the holder of such beneficial interest in a Restricted
            Global Warrant proposes to exchange such beneficial interest for a
            Restricted Definitive Warrant, a certificate from such holder in the
            form of Exhibit C hereto, including the certifications in item
            (2)(a) thereof;

                  (B) if such beneficial interest is being transferred to a QIB
            in accordance with Rule 144A under the Securities Act, a certificate
            to the effect set forth in Exhibit B hereto, including the
            certifications in item (1) thereof;

                  (C) if such beneficial interest is being transferred to a
            Non-U.S. Person in an offshore transaction in accordance with Rule
            903 or Rule 904 under the Securities Act, a certificate to the
            effect set forth in Exhibit B hereto, including the certifications
            in item (2) thereof;

                  (D) if such beneficial interest is being transferred pursuant
            to an exemption from the registration requirements of the Securities
            Act in accordance with Rule 144 under the Securities Act, a
            certificate to the effect set forth in Exhibit B hereto, including
            the certifications in item (3)(a) thereof;

                  (E) if such beneficial interest is being transferred to an
            Institutional Accredited Investor in reliance on an exemption from
            the registration requirements of the Securities Act other than those
            listed in subparagraphs (B) through (D) above, a certificate to the
            effect set forth in Exhibit B hereto, including the certifications,
            certificates and Opinion of Counsel required by item (3) thereof, if
            applicable; or

                                      -9-

<PAGE>

                  (F) if such beneficial interest is being transferred to the
            Company or any of its Subsidiaries, a certificate to the effect set
            forth in Exhibit B hereto, including the certifications in item
            (3)(b) thereof;

the Warrant Agent shall cause, in accordance with the standing instructions and
procedures existing between the Depositary and the Warrant Agent, the number of
Warrants represented by the Global Warrant to be reduced by the number of
Warrants to be represented by the Definitive Warrant pursuant to Section 3.5(g)
hereof, and the Company shall execute and the Warrant Agent shall countersign
and deliver to the Person designated in the instructions a Definitive Warrant in
the appropriate amount. Any Definitive Warrant issued in exchange for a
beneficial interest in a Restricted Global Warrant pursuant to this Section
3.5(c) shall be registered in such name or names as the holder of such
beneficial interest shall instruct the Warrant Registrar through instructions
from the Depositary and the Participant or Indirect Participant. The Warrant
Agent shall deliver such Definitive Warrants to the Persons in whose names such
Warrants are so registered. Any Definitive Warrant issued in exchange for a
beneficial interest in a Restricted Global Warrant pursuant to this Section
3.5(c)(i) shall bear the Private Placement Legend and shall be subject to all
restrictions on transfer contained therein.

            (ii) Beneficial Interests in Restricted Global Warrants to
      Unrestricted Definitive Warrants. A holder of a beneficial interest in a
      Restricted Global Warrant may exchange such beneficial interest for an
      Unrestricted Definitive Warrant or may transfer such beneficial interest
      to a Person who takes delivery thereof in the form of an Unrestricted
      Definitive Warrant only if the Warrant Registrar receives the following:

                  (A) if the holder of such beneficial interest in a Restricted
            Global Warrant proposes to exchange such beneficial interest for an
            Unrestricted Definitive Warrant, a certificate from such holder in
            the form of Exhibit C hereto, including the certifications in item
            (1)(b) thereof; or

                  (B) if the holder of such beneficial interest in a Restricted
            Global Warrant proposes to transfer such beneficial interest to a
            Person who shall take delivery thereof in the form of an
            Unrestricted Definitive Warrant, a certificate from such holder in
            the form of Exhibit B hereto, including the certifications in item
            (4) thereof; and, in each such case set forth in this subparagraph
            (ii), if the Warrant Registrar so requests or if the Applicable
            Procedures so require, an Opinion of Counsel in form reasonably
            acceptable to the Warrant Registrar to the effect that such exchange
            or transfer is in compliance with the Securities Act and that the
            restrictions on transfer contained herein and in the Private
            Placement Legend are no longer required in order to maintain
            compliance with the Securities Act.

            (iii) Beneficial Interests in Unrestricted Global Warrants to
      Unrestricted Definitive Warrants. If any holder of a beneficial interest
      in an Unrestricted Global Warrant proposes to exchange such beneficial
      interest for a Definitive Warrant or to transfer such beneficial interest
      to a Person who takes delivery thereof in the form of a Definitive
      Warrant, then, upon satisfaction of the conditions set forth in Section
      3.5(b)(ii) hereof, the Warrant Agent shall cause the amount of the
      applicable Global Warrant to be

                                      -10-

<PAGE>

      reduced accordingly pursuant to Section 3.5(g) hereof, and the Company
      shall execute and the Warrant Agent shall countersign and deliver to the
      Person designated in the instructions a Definitive Warrant in the
      appropriate principal amount. Any Definitive Warrant issued in exchange
      for a beneficial interest pursuant to this Section 3.5(c)(iii) shall be
      registered in such name or names and in such authorized denomination or
      denominations as the holder of such beneficial interest shall instruct the
      Warrant Registrar through instructions from the Depositary and the
      Participant or Indirect Participant. The Warrant Agent shall deliver such
      Definitive Warrants to the Persons in whose names such Warrants are so
      registered. Any Definitive Warrant issued in exchange for a beneficial
      interest pursuant to this Section 3.5(c)(iii) shall not bear the Private
      Placement Legend.

      (d) Transfer and Exchange of Definitive Warrants for Beneficial Interests.

            (i) Restricted Definitive Warrants to Beneficial Interests in
      Restricted Global Warrants. If any holder of a Restricted Definitive
      Warrant proposes to exchange such Warrant for a beneficial interest in a
      Restricted Global Warrant or to transfer such Restricted Definitive
      Warrants to a Person who takes delivery thereof in the form of a
      beneficial interest in a Restricted Global Warrant, then, upon receipt by
      the Warrant Registrar of the following documentation:

                  (A) if the holder of such Restricted Definitive Warrant
            proposes to exchange such Warrant for a beneficial interest in a
            Restricted Global Warrant, a certificate from such holder in the
            form of Exhibit C hereto, including the certifications in item
            (2)(b) thereof;

                  (B) if such Restricted Definitive Warrant is being transferred
            to a QIB in accordance with Rule 144A under the Securities Act, a
            certificate to the effect set forth in Exhibit B hereto, including
            the certifications in item (1) thereof;

                  (C) if such Restricted Definitive Warrant is being transferred
            to a Non-U.S. Person in an offshore transaction in accordance with
            Rule 903 or Rule 904 under the Securities Act, a certificate to the
            effect set forth in Exhibit B hereto, including the certifications
            in item (2) thereof;

                  (D) if such Restricted Definitive Warrant is being transferred
            pursuant to an exemption from the registration requirements of the
            Securities Act in accordance with Rule 144 under the Securities Act,
            a certificate to the effect set forth in Exhibit B hereto, including
            the certifications in item (3)(a) thereof;

                  (E) if such Restricted Definitive Warrant is being transferred
            to an Institutional Accredited Investor in reliance on an exemption
            from the registration requirements of the Securities Act other than
            those listed in subparagraphs (B) through (D) above, a certificate
            to the effect set forth in Exhibit B hereto, including the
            certifications, certificates and Opinion of Counsel required by item
            (3) thereof, if applicable; or

                                      -11-

<PAGE>

                  (F) if such Restricted Definitive Warrant is being transferred
            to the Company or any of its Subsidiaries, a certificate to the
            effect set forth in Exhibit B hereto, including the certifications
            in item (3)(b) thereof;

      the Warrant Agent shall cancel the Restricted Definitive Warrant and
      increase or cause to be increased the amount of, in the case of clause (A)
      above, the appropriate Restricted Global Warrant, in the case of clause
      (B) above, the 144A Global Warrant, in the case of clause (C) above, the
      Regulation S Global Warrant, and in all other cases, the IAI Global
      Warrant.

            (ii) Restricted Definitive Warrants to Beneficial Interests in
      Unrestricted Global Warrants. A holder of a Restricted Definitive Warrant
      may exchange such Warrant for a beneficial interest in an Unrestricted
      Global Warrant or transfer such Restricted Definitive Warrant to a Person
      who takes delivery thereof in the form of a beneficial interest in an
      Unrestricted Global Warrant only if the Warrant Registrar receives the
      following:

                  (A) if the holder of such Definitive Warrants proposes to
            exchange such Warrants for a beneficial interest in the Unrestricted
            Global Warrant, a certificate from such holder in the form of
            Exhibit C hereto, including the certifications in item (1)(c)
            thereof; or

                  (B) if the holder of such Definitive Warrants proposes to
            transfer such Warrants to a Person who shall take delivery thereof
            in the form of a beneficial interest in the Unrestricted Global
            Warrant, a certificate from such holder in the form of Exhibit B
            hereto, including the certifications in item (4) thereof;

      and, in each such case set forth in this subparagraph (ii), if the Warrant
      Registrar so requests or if the Applicable Procedures so require, an
      Opinion of Counsel in form reasonably acceptable to the Warrant Registrar
      to the effect that such exchange or transfer is in compliance with the
      Securities Act and that the restrictions on transfer contained herein and
      in the Private Placement Legend are no longer required in order to
      maintain compliance with the Securities Act.

            Upon satisfaction of the conditions of any of the subparagraphs in
      this Section 3.5(d)(ii), the Warrant Agent shall cancel the Definitive
      Warrants and increase or cause to be increased the aggregate principal
      amount of the Unrestricted Global Warrant.

            (iii) Unrestricted Definitive Warrants to Beneficial Interests in
      Unrestricted Global Warrants. A holder of an Unrestricted Definitive
      Warrant may exchange such Warrant for a beneficial interest in an
      Unrestricted Global Warrant or transfer such Definitive Warrants to a
      Person who takes delivery thereof in the form of a beneficial interest in
      an Unrestricted Global Warrant at any time. Upon receipt of a request for
      such an exchange or transfer, the Warrant Agent shall cancel the
      applicable Unrestricted Definitive Warrant and increase or cause to be
      increased the amount of one of the Unrestricted Global Warrants.

                                      -12-

<PAGE>

      If any such exchange or transfer from a Definitive Warrant to a beneficial
      interest is effected pursuant to subparagraphs (ii)(B) or (iii) above at a
      time when an Unrestricted Global Warrant has not yet been issued, the
      Company shall issue and, upon receipt of an Warrant Countersignature Order
      in accordance with Section 3.2 hereof, the Warrant Agent shall countersign
      one or more Unrestricted Global Warrants in the number equal to the number
      of beneficial interests of Definitive Warrants so transferred.

      (e) Transfer and Exchange of Definitive Warrants for Definitive Warrants.
Upon request by a holder of Definitive Warrants and such holder's compliance
with the provisions of this Section 3.5(e), the Warrant Registrar shall register
the transfer or exchange of Definitive Warrants. Prior to such registration of
transfer or exchange, the requesting holder shall present or surrender to the
Warrant Registrar the Definitive Warrants duly endorsed or accompanied by a
written instruction of transfer in form satisfactory to the Warrant Registrar
duly executed by such holder or by its attorney, duly authorized in writing. In
addition, the requesting holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following
provisions of this Section 3.5(e).

            (i) Restricted Definitive Warrants to Restricted Definitive
      Warrants. Any Restricted Definitive Warrant may be transferred to and
      registered in the name of Persons who take delivery thereof in the form of
      a Restricted Definitive Warrant if the Warrant Registrar receives the
      following:

                  (A) if the transfer will be made pursuant to Rule 144A, then
            the transferor must deliver a certificate in the form of Exhibit B
            hereto, including the certifications in item (1) thereof;

                  (B) if the transfer will be made pursuant to Rule 903 or Rule
            904, then the transferor must deliver a certificate in the form of
            Exhibit B hereto, including the certifications in item (2) thereof;
            or

                  (C) if the transfer will be made pursuant to any other
            exemption from the registration requirements of the Securities Act,
            then the transferor must deliver a certificate in the form of
            Exhibit B hereto, including the certifications, certificates and
            Opinion of Counsel required by item (3) thereof, if applicable.

            (ii) Restricted Definitive Warrants to Unrestricted Definitive
      Warrants. Any Restricted Definitive Warrant may be exchanged by the holder
      thereof for an Unrestricted Definitive Warrant or transferred to a Person
      or Persons who take delivery thereof in the form of an Unrestricted
      Definitive Warrant if the Warrant Registrar receives the following:

                  (A) if the holder of such Restricted Definitive Warrants
            proposes to exchange such Warrants for an Unrestricted Definitive
            Warrant, a certificate from such holder in the form of Exhibit C
            hereto, including the certifications in item (1)(d) thereof; or

                                      -13-

<PAGE>

                  (B) if the holder of such Restricted Definitive Warrants
            proposes to transfer such Warrants to a Person who shall take
            delivery thereof in the form of an Unrestricted Definitive Warrant,
            a certificate from such holder in the form of Exhibit B hereto,
            including the certifications in item (4) thereof;

      and, in each such case set forth in this subparagraph (ii), if the Warrant
      Registrar so requests, an Opinion of Counsel in form reasonably acceptable
      to the Warrant Registrar to the effect that such exchange or transfer is
      in compliance with the Securities Act and that the restrictions on
      transfer contained herein and in the Private Placement Legend are no
      longer required in order to maintain compliance with the Securities Act.

            (iii) Unrestricted Definitive Warrants to Unrestricted Definitive
      Warrants. A holder of Unrestricted Definitive Warrants may transfer such
      Warrants to a Person who takes delivery thereof in the form of an
      Unrestricted Definitive Warrant. Upon receipt of a request to register
      such a transfer, the Warrant Registrar shall register the Unrestricted
      Definitive Warrants pursuant to the instructions from the holder thereof.

      (f) Legends. The following legends shall appear on the face of all Global
Warrants and Definitive Warrants issued under this Warrant Agreement unless
specifically stated otherwise in the applicable provisions of this Warrant
Agreement.

            (i) Private Placement Legend.

                  (A) Except as permitted by subparagraph (B) below, each Global
            Warrant and each Definitive Warrant (and all Warrants issued in
            exchange therefor or substitution thereof) shall bear the legend in
            substantially the following form:

"THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT (THE "WARRANT SHARES") HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
      SECURITIES LAWS. NEITHER THIS WARRANT, THE WARRANT SHARES NOR ANY INTEREST
      OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
      OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
      SUBJECT TO, REGISTRATION.

      THE HOLDER OF THIS WARRANT, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT
      (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT), (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS
      WARRANT IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S
      UNDER THE SECURITIES ACT, OR (C) IT IS AN INSTITUTIONAL "ACCREDITED
      INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF
      RULE 501 UNDER THE SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR
      OTHERWISE TRANSFER SUCH WARRANT, PRIOR TO THE DATE (THE

                                      -14-

<PAGE>

      "RESALE RESTRICTION TERMINATION DATE") THAT IS TWO YEARS AFTER THE LATER
      OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
      (AS HEREINAFTER DEFINED) OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
      THIS WARRANT (OR ANY PREDECESSOR OF SUCH WARRANT), ONLY (A) TO THE COMPANY
      OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT
      HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
      THIS WARRANT IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
      SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
      INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
      PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
      INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
      MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO
      NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE
      MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
      "ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3)
      OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS WARRANT
      FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
      ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR
      FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
      SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S
      AND THE WARRANT AGENT'S, OR TRANSFER AGENT'S, AS APPLICABLE, RIGHT PRIOR
      TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D), (E) OR (F) TO
      REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
      INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING
      CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE
      OF THIS WARRANT IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
      WARRANT AGENT OR THE TRANSFER AGENT. THIS LEGEND WILL BE REMOVED UPON THE
      REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

      THE HOLDER OF THIS WARRANT AND THE WARRANT SHARES TO BE ISSUED UPON ITS
      EXERCISE, BY ITS ACCEPTANCE HEREOF, AGREES NOT TO ENGAGE IN ANY HEDGING
      TRANSACTION UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. THE HOLDER OF
      THIS WARRANT AND THE WARRANT SHARES TO BE ISSUED UPON ITS EXERCISE, BY ITS
      ACCEPTANCE HEREOF, AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
      WARRANT OR ANY INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
      THE EFFECT OF THESE LEGENDS."

                  (B) Notwithstanding the foregoing, any Global Warrant or
            Definitive Warrant issued pursuant to subparagraphs (b)(iv),
            (c)(ii), (c)(iii), (d)(ii), (d)(iii),

                                      -15-

<PAGE>

            (e)(ii) or (e)(iii) to this Section 3.5 (and all Warrants issued in
            exchange therefor or substitution thereof) shall not bear the
            Private Placement Legend.

            (ii) Global Warrant Legend. Each Global Warrant shall bear a legend
      in substantially the following form:

      "THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT
      AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE
      BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
      PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE
      SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 3.5 OF THE
      WARRANT AGREEMENT, (II) THIS GLOBAL WARRANT MAY BE EXCHANGED IN WHOLE BUT
      NOT IN PART PURSUANT TO SECTION 3.5(a) OF THE WARRANT AGREEMENT, (III)
      THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR CANCELLATION
      PURSUANT TO SECTION 3.8 OF THE WARRANT AGREEMENT AND (IV) THIS GLOBAL
      WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
      WRITTEN CONSENT OF THE COMPANY."

            (iii) Unit Legend. Each Warrant issued prior to the Separation Date
      shall bear a legend in substantially the following form:

      "THIS WARRANT WAS INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE
      "UNITS"), EACH OF WHICH CONSISTS OF $1,000 PRINCIPAL AMOUNT OF THE
      COMPANY'S 11-1/2% SENIOR SECURED NOTES DUE 2011 (THE "NOTES") AND ONE
      WARRANT TO PURCHASE 8.947 SHARES OF THE COMPANY'S COMMON STOCK (THE
      "WARRANT SHARES").

      PRIOR TO THE EARLIEST TO OCCUR OF (I) 180 DAYS FOLLOWING THE CONSUMMATION
      OF THE OFFERING OF THE UNITS, (II) THE DATE ON WHICH A REGISTRATION
      STATEMENT FOR A REGISTERED EXCHANGE OFFER WITH RESPECT TO THE NOTES IS
      DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (III) THE DATE ON WHICH A
      SHELF REGISTRATION STATEMENT WITH RESPECT TO THE WARRANT SHARES IS
      DECLARED EFFECTIVE UNDER THE SECURITIES ACT AND (IV) SUCH DATE AS
      JEFFERIES & COMPANY, INC., AS THE INITIAL PURCHASER OF THE UNITS, IN ITS
      SOLE DISCRETION SHALL DETERMINE, THIS WARRANT MAY NOT BE TRANSFERRED OR
      EXCHANGED SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY AS, A
      UNIT (THE "SEPARATION DATE")."

            (iv) Regulation S Legend. Each Warrant that is a Registrable
      Security and issued pursuant to Regulation S shall bear the following
      legend on the face thereof:

      "THIS WARRANT AND THE SECURITIES TO BE ISSUED UPON ITS EXERCISE HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT AND THE

                                      -16-

<PAGE>

      WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON UNLESS
      REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
      "SECURITIES ACT") OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. IN
      ORDER TO EXERCISE THIS WARRANT, THE HOLDER MUST FURNISH TO THE COMPANY AND
      THE WARRANT AGENT EITHER (A) A WRITTEN CERTIFICATION THAT IT IS NOT A U.S.
      PERSON AND THE WARRANT IS NOT BEING EXERCISED ON BEHALF OF A U.S. PERSON
      OR (B) A WRITTEN OPINION OF COUNSEL TO THE EFFECT THAT THE SECURITIES
      DELIVERED UPON EXERCISE OF THE WARRANT HAVE BEEN REGISTERED UNDER THE
      SECURITIES ACT OR THAT THE DELIVERY OF SUCH SECURITIES IS EXEMPT FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. TERMS IN THIS LEGEND HAVE
      THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT."

      (g) Cancellation and/or Adjustment of Global Warrants. At such time as all
beneficial interests in a particular Global Warrant have been exercised or
exchanged for Definitive Warrants or a particular Global Warrant has been
exercised, redeemed, repurchased or canceled in whole and not in part, each such
Global Warrant shall be returned to or retained and canceled by the Warrant
Agent in accordance with Section 3.8 hereof. At any time prior to such
cancellation, if any beneficial interest in a Global Warrant is exercised or
exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Warrant or for Definitive
Warrants, the amount of Warrants represented by such Global Warrant shall be
reduced accordingly and an endorsement shall be made on such Global Warrant by
the Warrant Agent or by the Depositary at the direction of the Warrant Agent to
reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Warrant, such other Global Warrant shall
be increased accordingly and an endorsement shall be made on such Global Warrant
by the Warrant Agent or by the Depositary at the direction of the Warrant Agent
to reflect such increase.

      (h) General Provisions Relating to Transfers and Exchanges.

            (i) To permit registrations of transfers and exchanges, the Company
      shall execute and the Warrant Agent shall countersign Global Warrants and
      Definitive Warrants upon the Company's order or at the Warrant Registrar's
      request.

            (ii) No service charge shall be made to a holder of a beneficial
      interest in a Global Warrant or to a holder of a Definitive Warrant for
      any registration of transfer or exchange, but the Company may require
      payment of a sum sufficient to cover any transfer tax or similar
      governmental charge payable in connection therewith.

            (iii) All Global Warrants and Definitive Warrants issued upon any
      registration of transfer or exchange of Global Warrants or Definitive
      Warrants shall be the duly authorized, executed and issued warrants for
      Common Stock of the Company, not subject to any preemptive rights, and
      entitled to the same benefits under this Warrant Agreement,

                                      -17-

<PAGE>

      as the Global Warrants or Definitive Warrants surrendered upon such
      registration of transfer or exchange.

            (iv) In connection with the due presentment for the registration of
      a transfer of any Warrant, the Warrant Agent and the Company may deem and
      treat the Person in whose name any Warrant is registered as the absolute
      owner of such Warrant for all purposes and neither the Warrant Agent nor
      the Company shall be affected by notice to the contrary.

            (v) The Warrant Agent shall countersign Global Warrants and
      Definitive Warrants in accordance with the provisions of Section 3.2
      hereof.

      (i) Facsimile Submissions to Warrant Agent. All certifications,
certificates and Opinions of Counsel required to be submitted to the Warrant
Registrar pursuant to this Section 3.5 to effect a registration of transfer or
exchange may be submitted by facsimile.

      Notwithstanding anything herein to the contrary, as to any certificates
and/or certifications delivered to the Warrant Registrar pursuant to this
Section 3.5, the Warrant Registrar's duties shall be limited to confirming that
any such certifications and certificates delivered to it are in the form of
Exhibits B and C attached hereto. The Warrant Registrar shall not be responsible
for confirming the truth or accuracy of representations made in any such
certifications or certificates. As to any Opinions of Counsel delivered pursuant
to this Section 3.5, the Warrant Registrar may rely upon, and be fully protected
in relying upon, such opinions.

      3.6. Replacement Warrants.

      If any mutilated Warrant is surrendered to the Warrant Agent or the
Company and the Warrant Agent receives evidence to its satisfaction of the
destruction, loss or theft of any Warrant, the Company shall issue and the
Warrant Agent, upon receipt of a Warrant Countersignature Order, shall
countersign a replacement Warrant if the Warrant Agent's requirements are met.
If required by the Warrant Agent or the Company, an indemnity bond must be
supplied by the holder that is sufficient in the judgment of the Warrant Agent
and the Company to protect the Company, the Warrant Agent and any agent for
purposes of the countersignature from any loss that any of them may suffer if a
Warrant is replaced. The Company may charge for its expenses in replacing a
Warrant.

      Every replacement Warrant is an additional warrant of the Company and
shall be entitled to all of the benefits of this Warrant Agreement equally and
proportionately with all other Warrants duly issued hereunder.

      3.7. Temporary Warrants.

      Until certificates representing Warrants are ready for delivery, the
Company may prepare and issue and the Warrant Agent, upon receipt of a Warrant
Countersignature Order, shall countersign temporary Warrants. Temporary Warrants
shall be substantially in the form of certificated Warrants but may have
variations that the Company considers appropriate for temporary Warrants and
that shall be reasonably acceptable to the Warrant Agent. Without

                                      -18-

<PAGE>

unreasonable delay, the Company shall prepare and the Warrant Agent shall
countersign definitive Warrants in exchange for temporary Warrants.

      Holders of temporary Warrants shall be entitled to all of the benefits of
this Warrant Agreement.

      3.8. Cancellation.

      Subject to Section 3.5(g) hereof, the Company at any time may deliver
Warrants to the Warrant Agent for cancellation. The Warrant Registrar and
Warrant Paying Agent shall forward to the Warrant Agent any Warrants surrendered
to them for registration of transfer, exchange or exercise. The Warrant Agent
and no one else shall cancel all Warrants surrendered for registration of
transfer, exchange, exercise, replacement or cancellation and shall destroy
canceled Warrants (subject to the record retention requirements of the Exchange
Act). Certification of the destruction of all canceled Warrants shall be
delivered to the Company. The Company may not issue new Warrants to replace
Warrants that have been exercised or that have been delivered to the Warrant
Agent for cancellation.

      Section 4. Separation of Warrants; Exercise of Warrants; Terms of
Warrants.

      (a) The Notes and Warrants will not be separately transferable until the
Separation Date. Subject to the terms of this Agreement, each Warrant holder
shall have the right, which may be exercised during the period commencing at the
opening of business on the Separation Date and until 5:00 p.m., New York City
time on June 15, 2011 (the "Exercise Period"), to receive from the Company the
number of fully paid and nonassessable Warrant Shares which the holder may at
the time be entitled to receive on exercise of such Warrants and payment of the
aggregate Exercise Price for all Warrant Shares being purchased (i) in cash, by
wire transfer or by certified or official bank check payable to the order of the
Company, (ii) by tendering Notes having a principal amount at the time of tender
equal to the aggregate Exercise Price for all Warrant Shares being purchased,
(iii) by tendering Warrants as set forth below or (iv) any combination of cash,
Notes or Warrants. Each holder may elect, upon exercise of its Warrants during
the Exercise Period, to receive Warrant Shares on a net basis, such that,
without the exchange of any funds, the holder will receive such number of
Warrant Shares as shall equal the product of (A) the number of Warrant Shares
for which such Warrant is exercisable as of the date of exercise (if the
Exercise Price were being paid in cash) and (B) the Cashless Exercise Ratio. The
"Cashless Exercise Ratio" shall equal a fraction the numerator of which is the
Market Value (as defined below) per share of Common Stock on the date of
exercise minus the Exercise Price per share as of the date of exercise and the
denominator of which is the Market Value per share on the date of exercise. Each
Warrant not exercised prior to 5:00 p.m., New York City time, on June 15, 2011
(the "Expiration Date") shall become void and all rights thereunder and all
rights in respect thereof under this Agreement shall cease as of such time. The
Warrant Agent shall have no obligation to calculate the Cashless Exercise Ratio.

      The "Market Value" per share of Common Stock as of any date shall equal
(i) if Common Stock is primarily traded on a securities exchange, the last sale
price of such Common Stock on such securities exchange on the trading day
immediately prior to the date of determination, or if no sale occurred on such
day, the mean between the closing "bid" and

                                      -19-

<PAGE>

"asked" prices on such day, (ii) if the principal market for Common Stock is in
the over-the-counter market, the closing sale price of such Common Stock on the
trading day immediately prior to the date of the determination, as published by
the National Association of Securities Dealers Automated Quotation System or
similar organization, or if such price is not so published on such day, the mean
between the closing "bid" and "asked" prices, if available, on such day, which
prices may be obtained from any reputable pricing service, broker or dealer
reasonably satisfactory to the Company, and (iii) if neither clause (i) nor
clause (ii) is applicable, the fair market value on the date of determination of
Common Stock as determined in good faith by the Board of Directors of the
Company.

      (b) In order to exercise all or any of the Warrants represented by a
Warrant Certificate, (i) in the case of a Definitive Warrant, the holder thereof
must surrender upon exercise the Warrant Certificate to the Company at the
corporate trust office of the Warrant Agent set forth in Section 15 hereof, (ii)
in the case of a book-entry interest in a Global Warrant, the exercising
Participant whose name appears on a securities position listing of the
Depositary as the holder of such book-entry interest must comply with the
Depositary's procedures relating to the exercise of such book-entry interest in
such Global Warrant and (iii) in the case of interests in both Global Warrants
and Definitive Warrants, the holder thereof or the Participant, as applicable,
shall deliver to the Company at the corporate trust office of the Warrant Agent
the form of election to purchase on the reverse thereof duly completed and
signed, which signature shall be medallion guaranteed by an institution which is
a member of a Securities Transfer Association recognized signature guarantee
program, and upon payment to the Warrant Agent for the account of the Company of
the Exercise Price, for the number of Warrant Shares in respect of which such
Warrants are then exercised. Payment of the aggregate Exercise Price shall be
made in accordance with Section 4(a) hereof.

      (c) Subject to the provisions of Section 5 hereof, upon compliance with
clause (b) above, the Company shall deliver or cause to be delivered with all
reasonable dispatch, to or to the written order of the holder and in such name
or names as the holder may designate, a certificate or certificates for the
number of whole Warrant Shares issuable upon the exercise of such Warrants or
other securities or property to which such holder is entitled hereunder,
together with cash as provided in Section 9 hereof; provided that if any
consolidation, merger or lease or sale of assets is proposed to be effected by
the Company or its subsidiaries as described in Section 8(k) hereof, or a tender
offer or an exchange offer for shares of Common Stock shall be made, upon such
surrender of Warrants and payment of the aggregate Exercise Price in accordance
with Section 4(b) above, the Company shall, as soon as possible, but in any
event not later than two business days thereafter, deliver or cause to be
delivered the full number of Warrant Shares issuable upon the exercise of such
Warrants in the manner described in this sentence or other securities or
property to which such holder is entitled hereunder, together with cash as
provided in Section 9 hereof. All certificates in this Section 4(c) shall be
deemed to have been issued and any Person so designated to be named therein
shall be deemed to have become a holder of record of such Warrant Shares as of
the date of the surrender of such Warrants and payment of the aggregate Exercise
Price.

      (d) The Warrants shall be exercisable, at the election of the holders
thereof, either in full or from time to time in part. If less than all the
Warrants represented by a Warrant

                                      -20-

<PAGE>

Certificate are exercised, such Warrant Certificate shall be surrendered and a
new Warrant Certificate of the same tenor and for the number of Warrants which
were not exercised shall be executed by the Company and delivered to the Warrant
Agent and the Warrant Agent shall countersign the new Warrant Certificate,
registered in such name or names as may be directed in writing by the holder,
and shall deliver or cause to be delivered the new Warrant Certificate to the
Person or Persons entitled to receive the same.

      (e) All Warrant Certificates surrendered upon exercise of Warrants shall
be cancelled by the Warrant Agent. Such cancelled Warrant Certificates shall
then be disposed of by the Warrant Agent in a manner satisfactory to the
Company. The Warrant Agent shall report promptly to the Company with respect to
Warrants exercised and concurrently pay to the Company all monies received by
the Warrant Agent for the purchase of the Warrant Shares through the exercise of
such Warrants.

      (f) The Warrant Agent shall keep copies of this Agreement and any notices
given or received hereunder available for inspection by the holders during
normal business hours at its office. The Company shall supply the Warrant Agent
from time to time with such numbers of copies of this Agreement as the Warrant
Agent may request.

      Section 5. Payment of Taxes.

      The Company shall pay all documentary stamp taxes attributable to the
initial issuance of Warrant Shares upon the exercise of Warrants; provided that
the Company shall not be required to pay any tax or taxes which may be payable
in respect of any transfer involved in the issue of any Warrant Certificates or
any certificates for Warrant Shares in a name other than that of the registered
holder of a Warrant Certificate surrendered upon the exercise of a Warrant, and
the Company shall not be required to issue or deliver such Warrant Certificates
unless or until the Person or Persons requesting the issuance thereof shall have
paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

      Section 6. Reservation of Warrant Shares; Registration of Warrant Shares.

      (a) The Company shall at all times reserve and keep available, free from
preemptive rights, out of the aggregate of its authorized but unissued Common
Stock and/or the authorized and issued Common Stock held in its treasury, for
the purpose of enabling it to satisfy any obligation to issue Warrant Shares
upon exercise of Warrants, the maximum number of shares of Common Stock which
may then be deliverable upon the exercise of all outstanding Warrants.

      (b) The Company or, if appointed, the transfer agent for the Common Stock
(the "Transfer Agent") and every subsequent transfer agent for any shares of the
Company's capital stock issuable upon the exercise of any of the rights of
purchase aforesaid will be irrevocably authorized and directed at all times to
reserve such number of authorized shares as shall be required for such purpose.
The Company shall keep a copy of this Agreement on file with the Transfer Agent
and with every subsequent transfer agent for any shares of the Company's capital
stock issuable upon the exercise of the rights of purchase represented by the
Warrants. The Warrant Agent is hereby irrevocably authorized to requisition from
time to time from such Transfer Agent the stock certificates required to honor
outstanding Warrants upon exercise

                                      -21-

<PAGE>

thereof in accordance with the terms of this Agreement. The Company shall supply
such Transfer Agent with duly executed certificates for such purposes and shall
provide or otherwise make available any cash which may be payable as provided in
Section 9 hereof. The Company shall furnish such Transfer Agent a copy of all
notices of adjustments, and certificates related thereto, transmitted to each
holder pursuant to Section 10 hereof.

      (c) Before or concurrently with taking any action which would cause an
adjustment pursuant to Section 8 hereof to reduce the Exercise Price below the
then par value (if any) of the Warrant Shares, the Company shall take any
corporate action which may, in the opinion of its counsel (which may be counsel
employed by the Company), be necessary in order that the Company may validly and
legally issue fully paid and nonassessable Warrant Shares at the Exercise Price
as so adjusted.

      (d) The Company covenants that all Warrant Shares which may be issued upon
exercise of Warrants shall, upon issue, be fully paid, nonassessable, free of
preemptive rights and free from all taxes, liens, charges and security interests
with respect to the issuance thereof.

      Section 7. Obtaining Stock Exchange Listings.

      The Company shall from time to time take all action which may be necessary
so that the Warrant Shares, immediately upon their issuance upon the exercise of
Warrants, will be listed on a principal securities exchange, automated quotation
system or other market within the United States of America, if any, on which
other shares of Common Stock are then listed, if any.

      Section 8. Adjustment of Exercise Price and Number of Warrant Shares
Issuable.

      The Exercise Price and the number of Warrant Shares issuable upon the
exercise of each Warrant shall be subject to adjustment from time to time upon
the occurrence of the events enumerated in this Section 8. Notwithstanding
anything to the contrary in this Agreement, in no event shall the Exercise Price
be less than the lower of the par value of the Common Stock or $0.01 per share
of Common Stock. For purposes of this Section 8, "Common Stock" means shares now
or hereafter authorized of any class of common shares of the Company however
designated, that has the right (subject to any prior rights of any class or
series of preferred stock) to participate in any distribution of the assets or
earnings of the Company without limit as to per share amount.

      In addition to the adjustments required under this Section 8, the Company
may, at any time reduce the Exercise Price to any amount greater than or equal
to $0.01 per share for any period of time (but not less than 20 Business Days)
deemed appropriate by the Board of Directors of the Company.

      (a) Adjustment for Change in Capital Stock. If the Company (i) pays a
dividend or makes a distribution on its Common Stock payable in shares of its
Common Stock, (ii) subdivides its outstanding shares of Common Stock into a
greater number of shares, (iii) combines its outstanding shares of Common Stock
into a smaller number of shares, (iv) makes a distribution on its Common Stock
in shares of its capital stock other than Common Stock or (v) issues by
reclassification of its Common Stock any shares of its capital stock, then the
Exercise

                                      -22-

<PAGE>

Price in effect immediately prior to such action shall, subject to the second
sentence of the first paragraph of this Section 8, be proportionately adjusted
so that the holder of any Warrant exercised after such action may receive the
aggregate number and kind of shares of capital stock of the Company which such
holder would have owned immediately following such action assuming the exercise
of such Warrant immediately prior to such action.

      The adjustment shall become effective immediately after the record date in
the case of a dividend or distribution and immediately after the effective date
in the case of a subdivision, combination or reclassification.

      If, after an adjustment pursuant to clause (v) above, a holder of a
Warrant upon exercise of it may receive shares of two or more classes of capital
stock of the Company, the Company shall determine, in good faith, the allocation
of the adjusted Exercise Price between the classes of capital stock. After such
allocation, the exercise privilege and the Exercise Price of each class of
capital stock shall after such action be subject to adjustment on terms
comparable to those applicable to Common Stock in this Section 8. Such
adjustment shall be made successively whenever any event listed above shall
occur.

      (b) Adjustment for Rights Issue. If the Company distributes any rights,
options or warrants to all holders of its Common Stock entitling them for a
period expiring within 45 days after the record date set forth below to
subscribe for shares of Common Stock or securities convertible into, or
exchangeable or exercisable for, shares of Common Stock, in either case, at a
price per share less than the Fair Market Value (as defined in subsection (g) of
this Section 8) per share on that record date, the Exercise Price shall be
adjusted in accordance with the formula:

                                  O        +        N x P
                                                    -----
        E'  =    E       x                            M
                                  ------------------------
                                             O + N

where:

        E'  =    the adjusted Exercise Price.
        E   =    the current Exercise Price.
        O   =    the number of shares of Common Stock
                 outstanding on the record date.
        N   =    the number of additional shares of Common Stock
                 issued pursuant to such rights, options or warrants.
        P   =    the price per share of the additional shares.
        M   =    the Fair Market Value per share of Common Stock on the record
                 date.

      The adjustment shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
rights, options or warrants. If at the end of the period during which such
rights, options or warrants are exercisable, not all rights, options or warrants
shall

                                      -23-

<PAGE>

have been exercised, the Exercise Price shall be immediately readjusted to what
it would have been if "N" in the above formula had been the number of shares
actually issued.

      (c) Adjustment for Other Distributions. If the Company distributes to all
holders of its Common Stock any of its assets (including cash), debt securities,
preferred stock or any rights or warrants to purchase assets (including cash),
debt securities, preferred stock or other securities of the Company, the
Exercise Price shall be adjusted in accordance with the formula:

          E'  =   E       x        M     -     F
                                   -------------
                                         M

where:

          E'  =   the adjusted Exercise Price.
          E   =   the current Exercise Price.
          M   =   the Fair Market Value per share of Common
                  Stock on the record date mentioned below.

          F   =   the fair market value on the record date
                  of the debt securities, preferred stock,
                  assets, securities, rights or warrants to be
                  distributed in respect of one share of
                  Common Stock as determined in good faith by
                  the Board of Directors of the Company.

      The adjustment shall be made successively whenever any such distribution
is made and shall become effective immediately after the record date for the
determination of stockholders entitled to receive the distribution.

      This Section 8(c) shall not apply to cash dividends or other cash
distributions paid out of consolidated current or retained earnings as shown on
the books of the Company prepared in accordance with generally accepted
accounting principles. In addition, this Section 8(c) shall not apply to rights,
options or warrants referred to in Section 8(b) hereof.

      (d) Adjustment for Common Stock Issue.

            (i) If the Company issues shares of Common Stock for a consideration
      per share less than the Fair Market Value per share on the date the
      Company fixes the offering price of such additional shares, the Exercise
      Price shall be adjusted in accordance with the formula:

          E'   =   E       x        O    +   P/M
                                    ------------
                                         A

where:

          E'   =   the adjusted Exercise Price.
          E    =   the then current Exercise Price.

                                      -24-

<PAGE>

          O    =   the number of shares outstanding immediately
                   prior to the issuance of such additional shares.
          P    =   the aggregate consideration received for the
                   issuance of such additional shares.
          M    =   the Fair Market Value per share on the date of issuance
                   of such additional shares.
          A    =   the number of shares outstanding immediately
                   after the issuance of such additional shares.

      The adjustment shall be made successively whenever any such issuance is
made, and shall become effective immediately after such issuance.

            (ii) This Section 8(d) shall not apply to:

            (1) any of the transactions described in subsections (a), (b) and
      (c) of this Section 8,

            (2) the exercise of Warrants,

            (3) the conversion, exchange or exercise of other securities
      convertible into or exchangeable or exercisable for Common Stock the
      issuance of which convertible securities requires an adjustment to be made
      under Section 8(e),

            (4) the issuance of Common Stock (and options exercisable therefore)
      to employees, officers or directors of the Company or its subsidiaries
      under bona fide employee benefit plans adopted by the Board of Directors
      and approved by the holders of Common Stock when required by law, if such
      Common Stock would otherwise be covered by this Section 8(d) (but only to
      the extent that the aggregate number of shares excluded hereby and issued
      after the date of this Warrant Agreement shall not exceed 25% of the
      Common Stock outstanding at the time of the adoption of the most recent of
      such plans, exclusive of anti-dilution adjustments thereunder),

            (5) the issuance of Common Stock to shareholders or equity holders
      of any Person which merges into the Company, or with a subsidiary of the
      Company, in proportion to their stock or equity holdings of such Person
      immediately prior to such merger, upon such merger, provided that if such
      Person is an Affiliate of the Company, the Board of Directors, including a
      majority of the independent directors, shall have determined that the
      consideration received in such merger is fair to the Company from a
      financial point of view; provided further that if the Board of Directors
      shall not consist of at least one independent director who was not
      appointed, nominated or designated to the Board of Directors through any
      right of appointment, nomination or designation by an Affiliate of the
      Company, the Company shall have obtained a fairness opinion from a
      nationally recognized investment banking, appraisal or valuation firm
      which is not an Affiliate of the Company to the effect that the
      consideration received in such merger is fair to the Company from a
      financial point of view,

                                      -25-

<PAGE>

            (6) the issuance of securities upon the conversion, exchange or
      exercise of other securities, warrants, options or similar rights if the
      conversion, exchange or exercise price is not less than the Fair Market
      Value per share of Common Stock at the time the security, warrant, option
      or right so converted, exchanged or exercised was issued or granted, or

            (7) the issuance of shares of Common Stock pursuant to rights,
      options or warrants which were originally issued in a Non-Affiliate Sale
      (as defined below) together with one or more other securities as part of a
      unit at a price per unit.

      (e) Adjustment for Convertible Securities Issue. If the Company issues any
securities convertible into or exchangeable or exercisable for Common Stock
(other than securities issued in transactions described in subsections (a), (b)
and (c) of this Section 8 or excluded from the application of Section 8(d)
pursuant to clause (ii) of Section 8(d)) for a consideration per share of Common
Stock initially deliverable upon conversion, exchange or exercise of such
securities less than the Fair Market Value per share on the date of issuance of
such securities, the Exercise Price shall be adjusted in accordance with the
formula:

          E'   =    E           x         O   + P/M
                                          ---------
                                          O   +   D

where:

          E'   =    the adjusted Exercise Price.
          E    =    the then current Exercise Price.
          O    =    the number of shares outstanding immediately
                    prior to the issuance of such securities.
          P    =    the aggregate consideration received for the
                    issuance of such securities.
          M    =    the Fair Market Value per share on the
                    date of issuance of such securities.

          D    =    the maximum number of shares deliverable
                    upon conversion or in exchange for such
                    securities at the initial conversion,
                    exchange or exercise rate.

      The adjustment shall be made successively whenever any such issuance is
made, and shall become effective immediately after such issuance.

      If all of the Common Stock deliverable upon conversion, exchange or
exercise of such securities have not been issued when such securities are no
longer outstanding, then the Exercise Price shall promptly be readjusted to the
Exercise Price which would then be in effect had the adjustment upon the
issuance of such securities been made on the basis of the actual number of
shares of Common Stock issued upon conversion, exchange or exercise of such
securities.

      This subsection (e) shall not apply to warrants or other convertible
securities issued to shareholders or equity holders of any Person which merges
into the Company, or with a

                                      -26-

<PAGE>

subsidiary of the Company, in proportion to their stock or equity holdings of
such person immediately prior to such merger, upon such merger, provided that if
such Person is an Affiliate of the Company, the Board of Directors, including a
majority of the independent directors, shall have determined that the
consideration received in such merger is fair to the Company from a financial
point of view; provided further that if the Board of Directors shall not consist
of at least one independent director who was not appointed, nominated or
designated to the Board of Directors through any right of appointment,
nomination or designation by an Affiliate of the Company, the Company shall have
obtained a fairness opinion from a nationally recognized investment banking,
appraisal or valuation firm which is not an Affiliate of the Company to the
effect that the consideration received in such merger is fair to the Company
from a financial point of view.

      (f) Consideration Received. For purposes of any computation respecting
consideration received pursuant to subsections (d) and (e) of this Section 8,
the following shall apply:

            (1) in the case of the issuance of shares of Common Stock for cash,
      the consideration shall be the amount of such cash, provided that in no
      case shall any deduction be made for any commissions, discounts or other
      expenses incurred by the Company for any underwriting of the issue or
      otherwise in connection therewith;

            (2) in the case of the issuance of shares of Common Stock for a
      consideration in whole or in part other than cash, the consideration other
      than cash shall be deemed to be the fair market value thereof as
      determined in good faith by the Board of Directors (irrespective of the
      accounting treatment thereof), whose determination shall be conclusive and
      non-appealable, and described in a Board resolution which shall be filed
      with the Warrant Agent;

            (3) in the case of the issuance of securities convertible into or
      exchangeable or exercisable for shares, the aggregate consideration
      received therefor shall be deemed to be the consideration received by the
      Company for the issuance of such securities plus the additional minimum
      consideration, if any, to be received by the Company upon the conversion,
      exchange or exercise thereof (the consideration in each case to be
      determined in the same manner as provided in clauses (1) and (2) of this
      subsection (f)); and

            (4) in the case of the issuance of shares of Common Stock pursuant
      to rights, options or warrants which rights, options or warrants were
      originally issued together with one or more other securities as part of a
      unit at a price per unit, the consideration shall be deemed to be the fair
      value of such rights, options or warrants at the time of issuance thereof
      as determined in good faith by the Board of Directors whose determination
      shall be conclusive and non-appealable and described in a Board resolution
      which shall be filed with the Warrant Agent plus the additional
      consideration, if any, to be received by the Company upon the exercise,
      conversion or exchange thereof (as determined in the same manner as
      provided in clauses (1) and (2) of this subsection (f)).

      (g) Fair Market Value. For purposes of Sections 8 (b), (c), (d) and (e)
hereof, the "Fair Market Value" per share of Common Stock at any date of
determination shall be (1) in

                                      -27-

<PAGE>

connection with a sale by the Company to a party that is not an Affiliate of the
Company in an arm's-length transaction (a "Non-Affiliate Sale"), the price per
security at which such security is sold and (2) in connection with any sale by
the Company to an Affiliate of the Company, (A) the last price per security at
which such security was sold in a Non-Affiliate Sale within the three-month
period preceding such date of determination and (B), if clause (A) is not
applicable, the fair market value of such security determined in good faith by
(i) a majority of the Board of Directors of the Company, including a majority of
the Disinterested Directors, and approved in a Board resolution delivered to the
Warrant Agent or (ii) a nationally recognized investment banking, appraisal or
valuation firm, which is not an Affiliate of the Company, in each case, taking
into account, among all other factors deemed relevant by the Board of Directors
or such investment banking, appraisal or valuation firm, the trading price and
volume of such security on any national securities exchange or automated
quotation system on which such security is traded.

      For purposes of this Section 8(g), "Disinterested Director" means, in
connection with any issuance of securities that gives rise to a determination of
the Fair Market Value thereof, each member of the Board of Directors who is not
an officer, employee, director or other Affiliate of the party to whom the
Company is proposing to issue the securities giving rise to such determination.

      For purposes of this Section 8(g), "Affiliate" of any specified Person
means (A) any other Person directly or indirectly controlling or controlled by
or under direct or indirect common control with such specified Person and (B)
any director or officer of such specified Person. For purposes of this
definition "Control" (including, with correlative meanings, the terms
"Controlling," "Controlled By" and "Under Common Control With") as used with
respect to any Person, shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise.

      (h) When De Minimis Adjustment May Be Deferred. No adjustment in the
Exercise Price need be made unless the adjustment would require an increase or
decrease of at least 1% in the Exercise Price. Any adjustments that are not made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this Section 8 shall be made to the nearest cent or to
the nearest 1/100th of a share, as the case may be, it being understood that no
such rounding shall be made under Section 8(p).

      (i) When No Adjustment Required. With respect to Warrants of any holder,
no adjustment need be made for a transaction referred to Section 8(a), (b), (c),
(d), (e) or (f) hereof, if such holder is to participate (without being required
to exercise its Warrants) in the transaction on a basis and with notice that the
Board of Directors determines to be fair and appropriate in light of the basis
and notice on which holders of Common Stock participate in the transaction. No
adjustment need be made for (i) rights to purchase Common Stock pursuant to a
Company plan for reinvestment of dividends or interest or (ii) a change in the
par value or no par value of the Common Stock. To the extent the Warrants become
convertible into cash, no adjustment need be made thereafter as to the cash.
Interest will not accrue on the cash.

      (j) Notice of Adjustment. Whenever the Exercise Price is adjusted, the
Company shall provide the notices required by Section 10 hereof.

                                      -28-

<PAGE>

      (k) Reorganization of Company. Immediately after the date hereof, if the
Company consolidates or merges with or into, or transfers or leases all or
substantially all its assets to, any Person, upon consummation of such
transaction the Warrants shall automatically become exercisable for the kind and
amount of securities, cash or other assets which the holder of a Warrant would
have owned immediately after the consolidation, merger, transfer or lease if the
holder had exercised the Warrant immediately before the consummation of the
transaction. Concurrently with the consummation of such transaction, the
corporation formed by or surviving any such consolidation or merger if other
than the Company, or the Person to which such sale or conveyance shall have been
made, shall enter into (i) a supplemental Warrant Agreement so providing and
further providing for adjustments which shall be as nearly equivalent as may be
practical to the adjustments provided for in this Section 8(k) and (ii) a
supplement to the Equity Registration Rights Agreement providing for the
assumption of the Company's obligations thereunder. The successor Company shall
mail to Warrant holders a notice describing the supplemental Warrant Agreement
and Equity Registration Rights Agreement. If the issuer of securities
deliverable upon exercise of Warrants under the supplemental Warrant Agreement
is an Affiliate of the formed, surviving, transferee or lessee corporation, such
issuer shall join in the supplemental Warrant Agreement and Equity Registration
Rights Agreement. If this Section 8(k) shall be applicable, Sections 8(a), (b),
(c), (d), (e) and (f) hereof shall not be applicable.

      (l) Company Determination Final. Any determination that the Company or the
Board of Directors must make pursuant to Section 8(a), (c), (d), (e), (f), (g),
(h) or (i) hereof is conclusive and non-appealable.

      (m) Warrant Agent's Disclaimer. The Warrant Agent shall have no duty to
determine when an adjustment under this Section 8 should be made, how it should
be made or what it should be. The Warrant Agent shall have no duty to determine
whether a supplemental Warrant Agreement under Section 8(k) need be entered into
or whether any provisions of a supplemental Warrant Agreement under Section 8(k)
hereof are correct. The Warrant Agent makes no representation as to the validity
or value of any securities or assets issued upon exercise of Warrants. The
Warrant Agent shall not be responsible for the Company's failure to comply with
this Section 8.

      (n) When Issuance or Payment May Be Deferred. In any case in which this
Section 8 shall require that an adjustment in the Exercise Price be made
effective as of a record date for a specified event, the Company may elect to
defer until the occurrence of such event (i) issuing to the holder of any
Warrant exercised after such record date the Warrant Shares and other capital
stock of the Company, if any, issuable upon such exercise over and above the
Warrant Shares and other capital stock of the Company, if any, issuable upon
such exercise on the basis of the Exercise Price and (ii) paying to such holder
any amount in cash in lieu of a fractional share pursuant to Section 10 hereof;
provided that the Company shall deliver to such holder a due bill or other
appropriate instrument evidencing such holder's right to receive such additional
Warrant Shares, other capital stock and cash upon the occurrence of the event
requiring such adjustment.

      (o) Adjustment in Number of Shares. Upon each adjustment of the Exercise
Price pursuant to this Section 8, each Warrant outstanding prior to the making
of the adjustment in the Exercise Price shall thereafter evidence the right to
receive upon payment of the adjusted

                                      -29-

<PAGE>

Exercise Price that number of shares of Common Stock (calculated to the nearest
hundredth) obtained from the following formula:

                         N'   =    N    x   E
                                           ---
                                            E'

where:

          N'    =   the adjusted number of Warrant Shares
                    issuable upon exercise of a Warrant by
                    payment of the adjusted Exercise Price.
          N     =   the number or Warrant Shares previously
                    issuable upon exercise of a Warrant by
                    payment of the Exercise Price prior to
                    adjustment.
          E'    =   the adjusted Exercise Price.
          E     =   the Exercise Price prior to adjustment.

      (p) Form of Warrants. Irrespective of any adjustments in the Exercise
Price or the number or kind of shares purchasable upon the exercise of the
Warrants, Warrants theretofore or thereafter issued may continue to express the
same price and number and kind of shares as are stated in the Warrants initially
issuable pursuant to this Agreement.

      Section 9. Fractional Interests.

      The Company shall not be required to issue fractional Warrant Shares on
the exercise of Warrants. If more than one Warrant shall be presented for
exercise in full at the same time by the same holder, the number of full Warrant
Shares which shall be issuable upon the exercise thereof shall be computed on
the basis of the aggregate number of Warrant Shares purchasable on exercise of
the Warrants so presented. If any fraction of a Warrant Share would, except for
the provisions of this Section 9, be issuable on the exercise of any Warrants
(or specified portion thereof), the Company shall pay an amount in cash equal to
the Fair Market Value per Warrant Share, as determined on the day immediately
preceding the date the Warrant is presented for exercise, multiplied by such
fraction, computed to the nearest whole U.S. cent.

      Section 10. Notices to Warrant Holders.

      (a) Upon any adjustment of the Exercise Price pursuant to Section 8
hereof, the Company shall promptly thereafter (i) cause to be filed with the
Warrant Agent a certificate of a firm of independent public accountants of
recognized standing selected by the Board of Directors of the Company (who may
be the regular auditors of the Company) setting forth the Exercise Price after
such adjustment and setting forth in reasonable detail the method of calculation
and the facts upon which such calculations are based and setting forth the
number of Warrant Shares (or portion thereof) issuable after such adjustment in
the Exercise Price, upon exercise of a Warrant and payment of the adjusted
Exercise Price, which certificate shall be conclusive evidence of the
correctness of the matters set forth therein, and (ii) cause to be given to each
of the registered holders of Warrants at the address appearing on the Warrant
register for each such registered holder written notice of such adjustments by
first-class mail, postage prepaid. Where

                                      -30-

<PAGE>

appropriate, such notice may be given in advance and included as a part of the
notice required to be mailed under the other provisions of this Section 10.

      (b) In the event:

            (i) that the Company shall authorize the issuance to all holders of
      shares of Common Stock of rights, options or warrants to subscribe for or
      purchase shares of Common Stock or of any other subscription rights or
      warrants;

            (ii) that the Company shall authorize the distribution to all
      holders of shares of Common Stock of evidences of its indebtedness or
      assets (other than dividends or cash distributions paid out of
      consolidated current or retained earnings as shown on the books of the
      Company prepared in accordance with generally accepted accounting
      principles or dividends payable in shares of Common Stock or
      distributions);

            (iii) of any consolidation or merger to which the Company is a party
      and for which approval of any stockholders of the Company is required, or
      of the conveyance or transfer of the properties and assets of the Company
      substantially as an entirety, or of any reclassification or change of
      Common Stock issuable upon exercise of the Warrants (other than a change
      in par value, or from par value to no par value, or from no par value to
      par value, or as a result of a subdivision or combination), or a tender
      offer or exchange offer by the Company for shares of Common Stock;

            (iv) of the voluntary or involuntary dissolution, liquidation or
      winding up of the Company; or

            (v) that the Company proposes to take any action (other than actions
      of the character described in Section 8(a) hereof) which would require an
      adjustment of the Exercise Price pursuant to Section 8 hereof;

then the Company shall cause to be filed with the Warrant Agent and shall cause
to be given to each registered holder of Warrants at his address appearing on
the Warrant register, at least 10 days prior to the applicable record date
hereinafter specified, or promptly in the case of events for which there is no
record date, by first-class mail, postage prepaid, a written notice stating (x)
the date as of which the holders of record of shares of Common Stock to be
entitled to receive any such rights, options, warrants or distribution are to be
determined, (y) the initial expiration date set forth in any tender offer or
exchange offer for shares of Common Stock, or (z) the date on which any such
consolidation, merger, conveyance, transfer, dissolution, liquidation or winding
up is expected to become effective or consummated, and the date as of which it
is expected that holders of record of shares of Common Stock shall be entitled
to exchange such shares for securities or other property, if any, deliverable
upon such reclassification, consolidation, merger, conveyance, transfer,
dissolution, liquidation or winding up. The failure to give the notice required
by this Section 10 or any defect therein shall not affect the legality or
validity of any distribution, right, option, warrant, consolidation, merger,
conveyance, transfer, dissolution, liquidation or winding up, or the vote upon
any action.

                                      -31-

<PAGE>

      (c) Nothing contained in this Agreement or in any of the Warrant
Certificates shall be construed as conferring upon the holders of Warrants the
right to vote or to consent or to receive notice as stockholders in respect of
the meetings of stockholders or the election of directors of the Company or any
other matter, or any rights whatsoever as stockholders of the Company.

      Section 11. Merger, Consolidation or Change of Name of Warrant Agent.

      (a) Any corporation into which the Warrant Agent may be merged or with
which it may be consolidated, or any corporation resulting from any merger or
consolidation to which the Warrant Agent shall be a party, or any corporation
succeeding to the business of the Warrant Agent, shall be the successor to the
Warrant Agent hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor warrant agent under
the provisions of Section 13 hereof. In case at the time such successor to the
Warrant Agent shall succeed to the agency created by this Agreement, and in case
at that time any of the Warrant Certificates shall have been countersigned but
not delivered, any such successor to the Warrant Agent may adopt the
countersignature of the original Warrant Agent; and in case at that time any of
the Warrant Certificates shall not have been countersigned, any successor to the
Warrant Agent may countersign such Warrant Certificates either in the name of
the predecessor Warrant Agent or in the name of the successor to the Warrant
Agent; and in all such cases such Warrant Certificates shall have the full force
and effect provided in the Warrant Certificates and in this Agreement.

      (b) In case at any time the name of the Warrant Agent shall be changed and
at such time any of the Warrant Certificates shall have been countersigned but
not delivered, the Warrant Agent whose name has been changed may adopt the
countersignature under its prior name, and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant Agent may
countersign such Warrant Certificates either in its prior name or in its changed
name, and in all such cases such Warrant Certificates shall have the full force
and effect provided in the Warrant Certificates and in this Agreement.

      Section 12. Warrant Agent.

      The Warrant Agent undertakes the duties and obligations imposed by this
Agreement upon the following terms and conditions, by all of which the Company
and the holders of Warrants, by their acceptance thereof, shall be bound:

            (a) The statements contained herein and in the Warrant Certificates
      shall be taken as statements of the Company and the Warrant Agent assumes
      no responsibility for the correctness of any of the same except such as
      describe the Warrant Agent or action taken or to be taken by it. The
      Warrant Agent assumes no responsibility with respect to the distribution
      of the Warrant Certificates except as herein otherwise provided.

            (b) The Warrant Agent shall not be responsible for any failure of
      the Company to comply with any of the covenants contained in this
      Agreement or in the Warrant Certificates to be complied with by the
      Company.

                                      -32-

<PAGE>

            (c) The Warrant Agent may consult at any time with counsel
      satisfactory to it (who may be counsel for the Company) and the Warrant
      Agent shall incur no liability or responsibility to the Company or to any
      holder of any Warrant Certificate in respect of any action taken, suffered
      or omitted by it hereunder in good faith and in accordance with the
      opinion or the advice of such counsel.

            (d) The Warrant Agent shall incur no liability or responsibility to
      the Company or to any holder of any Warrant Certificate for any action
      taken in reliance on any Warrant Certificate, certificate of shares,
      notice, resolution, waiver, consent, order, certificate, or other paper,
      document or instrument believed by it to be genuine and to have been
      signed, sent or presented by the proper party or parties.

            (e) The Company agrees to pay to the Warrant Agent reasonable
      compensation for all services rendered by the Warrant Agent in the
      execution of this Agreement, to reimburse the Warrant Agent for all
      expenses, taxes and governmental charges and other charges of any kind and
      nature incurred by the Warrant Agent in the execution of this Agreement.
      The Company shall indemnify the Warrant Agent against any and all losses,
      liabilities or expenses incurred by it arising out of or in connection
      with the acceptance or administration of its duties under this Warrant
      Agreement, including the costs and expenses of enforcing this Agreement
      against the Company and defending itself against any claim (whether
      asserted by the Company or any holder or any other person) or liability in
      connection with the exercise or performance of any of its powers or duties
      hereunder, except to the extent any such loss, liability or expense may be
      attributable to its gross negligence, bad faith or breach of this
      Agreement. The Warrant Agent shall notify the Company promptly of any
      claim for which it may seek indemnity. Failure by the Warrant Agent to so
      notify the Company shall not relieve the Company of its obligations
      hereunder. The Company shall defend the claim and the Warrant Agent shall
      cooperate in the defense. The Warrant Agent may have separate counsel and
      the Company shall pay the reasonable fees and expenses of such counsel.
      The Company need not pay for any settlement made without its consent,
      which consent shall not be unreasonably withheld, conditioned or delayed.

            (f) The Warrant Agent shall be under no obligation to institute any
      action, suit or legal proceeding or to take any other action likely to
      involve expense unless the Company or one or more registered holders of
      Warrants shall furnish the Warrant Agent with reasonable security and
      indemnity for any costs and expenses which may be incurred, but this
      provision shall not affect the power of the Warrant Agent to take such
      action as it may consider proper, whether with or without any such
      security or indemnity. All rights of action under this Agreement or under
      any of the Warrants may be enforced by the Warrant Agent without the
      possession of any of the Warrant Certificates or the production thereof at
      any trial or other proceeding relative thereto, and any such action, suit
      or proceeding instituted by the Warrant Agent shall be brought in its name
      as Warrant Agent and any recovery of judgment shall be for the ratable
      benefit of the registered holders of the Warrants, as their respective
      rights or interests may appear.

            (g) The Warrant Agent, and any stockholder, director, officer or
      employee of it, may buy, sell or deal in any of the Warrants or other
      securities of the Company or

                                      -33-

<PAGE>

      become pecuniarily interested in any transaction in which the Company may
      be interested, or contract with or lend money to the Company or otherwise
      act as fully and freely as though it were not Warrant Agent under this
      Agreement. Nothing herein shall preclude the Warrant Agent from acting in
      any other capacity for the Company or for any other legal entity.

            (h) The Warrant Agent shall act hereunder solely as agent for the
      Company, and its duties shall be determined solely by the provisions
      hereof. The Warrant Agent shall not be liable for anything which it may do
      or refrain from doing in connection with this Agreement except for its own
      gross negligence, bad faith or breach of this Agreement.

            (i) The Warrant Agent shall not at any time be under any duty or
      responsibility to any holder of any Warrant Certificate to make or cause
      to be made any adjustment of the Exercise Price or number of the Warrant
      Shares or other securities or property deliverable as provided in this
      Agreement, or to determine whether any facts exist which may require any
      of such adjustments, or with respect to the nature or extent of any such
      adjustments, when made, or with respect to the method employed in making
      the same. The Warrant Agent shall not be accountable with respect to the
      validity or value or the kind or amount of any Warrant Shares or of any
      securities or property which may at any time be issued or delivered upon
      the exercise of any Warrant or with respect to whether any such Warrant
      Shares or other securities will when issued be validly issued and fully
      paid and nonassessable, and makes no representation with respect thereto.

            (j) The Warrant Agent shall not be required to risk or expend its
      own funds on the performance of it obligations and duties hereunder.

            (k) The obligations of the Company under this Section 12 shall
      survive the exercise and the expiration of the Warrant Certificates and
      the resignation and removal of the Warrant Agent.

            (l) The Warrant Agent shall not be under any liability for interest
      on, and shall not be required to invest, any monies at any time received
      by it pursuant to any of the provisions of this Agreement or of the
      Warrant Certificates.

            (m) Any corporation or bank into which the Warrant Agent hereunder
      may be merged or converted, or any corporation or bank with which the
      Warrant Agent may be consolidated, or any corporation or bank resulting
      from any merger, conversion or consolidation to which the Warrant Agent
      shall be a party, or any corporation or bank to which the Warrant Agent
      shall sell or otherwise transfer all or substantially all of its corporate
      trust business, shall be the successor to the Warrant Agent under this
      Agreement (provided that such corporation or bank shall be qualified as
      aforesaid) without the execution or filing of any document or any further
      act on the part of any of the parties hereto.

            (n) No Warrant Agent under this Agreement shall be personally liable
      for any action or omission of any successor Warrant Agent.

                                      -34-

<PAGE>

      Section 13. Change of Warrant Agent.

      If the Warrant Agent shall resign or become incapable of acting as Warrant
Agent, the Company shall appoint a successor to such Warrant Agent. If the
Company shall fail to make such appointment within a period of 30 days after it
has been notified in writing of such incapacity by the Warrant Agent or by the
registered holder of a Warrant Certificate, then the registered holder of any
Warrant may apply to any court of competent jurisdiction for the appointment of
a successor to the Warrant Agent. Pending appointment of a successor to such
Warrant Agent, either by the Company or by such a court, the duties of the
Warrant Agent shall be carried out by the Company. The holders of a majority of
the unexercised Warrants shall be entitled at any time to remove the Warrant
Agent and appoint a successor to such Warrant Agent. Such successor to the
Warrant Agent need not be approved by the Company or the former Warrant Agent.
After appointment the successor to the Warrant Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally
named as Warrant Agent without further act or deed; provided that the former
Warrant Agent shall deliver and transfer to the successor to the Warrant Agent
any property at the time held by it hereunder and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Failure to
give any notice provided for in this Section 13, however, or any defect therein,
shall not affect the legality or validity of the appointment of a successor to
the Warrant Agent.

      Section 14. Reports.

      (a) The Company agrees with each holder, for so long as any Warrants or
Warrant Shares remain outstanding and during any period in which the Company (i)
is not subject to Section 13 or 15(d) of the Exchange Act, to make available,
upon request of any holder, to such holder or beneficial owner of Warrants or
Warrant Shares in connection with any sale thereof and any prospective purchaser
of such Warrants or Warrant Shares designated by such holder or beneficial
owner, the information required by Rule 144(A)(d)(4) under the Act in order to
permit resales of such Warrants or Warrant Shares pursuant to Rule 144A, and
(ii) is subject to Section 13 or 15(d) of the Exchange Act, to make all filings
required thereby in a timely manner in order to permit resales of such Warrants
or Warrant Shares pursuant to Rule 144A.

      (b) The Company shall provide the Warrant Agent with a sufficient number
of copies of all such reports that the Warrant Agent may be required to deliver
to the holders of the Warrants and the Warrant Shares under this Section 14.

      Section 15. Notices to Company and Warrant Agent.

      Any notice or demand authorized by this Agreement to be given or made by
the Warrant Agent or by the registered holder of any Warrant to or on the
Company shall be sufficiently given or made when received if deposited in the
mail, first class or registered, postage prepaid, addressed (until another
address is filed in writing by the Company with the Warrant Agent) as follows:

                               Viskase Companies, Inc.
                               625 Willowbrook Centre Parkway
                               Willowbrook, Illinois  60527

                                      -35-

<PAGE>

                               Facsimile No.: (630) 455-2155
                               Attention:  Jon Weber, Chief Executive Officer

      With a copy to:

                               Jenner & Block LLC
                               One IBM Plaza
                               Chicago, IL  60611
                               Facsimile No.: (312) 840-8711
                               Attention: Thomas A. Monson

      In case the Company shall fail to maintain such office or agency or shall
fail to give such notice of the location or of any change in the location
thereof, presentations may be made and notices and demands may be served at the
corporate trust office of the Warrant Agent.

      Any notice pursuant to this Agreement to be given by the Company or by the
registered holder(s) of any Warrant to the Warrant Agent shall be sufficiently
given when and if deposited in the mail, first-class or registered, postage
prepaid, addressed (until another address is filed in writing by the Warrant
Agent with the Company) to and received by the Warrant Agent at its corporate
trust office as follows:

                               Wells Fargo Bank, National Association
                               Sixth St. and Marquette Ave.
                               MAC N9303-120
                               Minneapolis, MN 55479
                               Telecopier No.: 612-667-9825
                               Attention: Corporate Trust Services- Viskase

      Section 16. Supplements and Amendments.

      The Company and the Warrant Agent may from time to time supplement or
amend this Agreement without the approval of any holders of Warrants in order to
cure any ambiguity or to correct or supplement any provision contained herein
which may be defective or inconsistent with any other provision herein, or to
make any other provisions in regard to matters or questions arising hereunder
which the Company and the Warrant Agent may deem necessary or desirable and
which shall not in any way materially adversely affect the interests of the
holders of Warrants. Any amendment or supplement to this Agreement that has a
materially adverse effect on the interests of the holders of Warrants shall
require the written consent of the holders of a majority of the then outstanding
Warrants (excluding Warrants held by the Company or any of its Affiliates). The
consent of each holder of Warrants affected shall be required for any amendment
pursuant to which the Exercise Price would be increased or the number of Warrant
Shares purchasable upon exercise of Warrants would be decreased (other than
pursuant to adjustments provided in this Agreement).

                                      -36-

<PAGE>

      Section 17. Successors.

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

      Section 18. Termination.

      This Agreement shall terminate at 5:00 p.m., New York City time on June
15, 2011. Notwithstanding the foregoing, this Agreement will terminate on any
earlier date if all Warrants have been exercised. The provisions of Section 12
shall survive such termination.

      Section 19. Governing Law.

      (a) This Agreement and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of New York and for all
purposes shall be construed in accordance with the internal laws of said State.

      (b) Each of the parties hereto irrevocably consents to the non-exclusive
jurisdiction of Supreme Court of New York, New York county and the United States
District Court for the Southern District of New York, New York county and waives
trial by jury in any action or proceeding with respect to this Agreement.

      Section 20. Benefits of this Agreement.

      Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company, the Warrant Agent and the registered holders
of Warrants any legal or equitable right, remedy or claim under this Agreement;
but this Agreement shall be for the sole and exclusive benefit of the Company,
the Warrant Agent and the registered holders of Warrants.

      Section 21. Counterparts.

      This Agreement may be executed in any number of counterparts and each of
such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.

                            [Signature Page Follows]

                                      -37-

<PAGE>

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

                                       Viskase Companies, Inc.

                                       By: /s/ Gordon S. Donovan
                                          _____________________________________
                                          Name:  Gordon S. Donovan
                                          Title: Vice President

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                       as Warrant Agent

                                       By: /s/ Jane Y. Schweiger
                                          _____________________________________
                                          Name:  Jane Y. Schweiger
                                          Title: Vice President

<PAGE>

                                    EXHIBIT A

                          [FORM OF WARRANT CERTIFICATE]

      THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
      WARRANT (THE "WARRANT SHARES") HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
      SECURITIES LAWS. NEITHER THIS WARRANT, THE WARRANT SHARES NOR ANY INTEREST
      OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
      TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE
      OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
      SUBJECT TO, REGISTRATION.

      THE HOLDER OF THIS WARRANT, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT
      (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
      THE SECURITIES ACT), (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS
      WARRANT IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S
      UNDER THE SECURITIES ACT, OR (C) IT IS AN INSTITUTIONAL "ACCREDITED
      INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF
      RULE 501 UNDER THE SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR
      OTHERWISE TRANSFER SUCH WARRANT, PRIOR TO THE DATE (THE "RESALE
      RESTRICTION TERMINATION DATE") THAT IS TWO YEARS AFTER THE LATER OF THE
      ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY (AS
      HEREINAFTER DEFINED) OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS
      WARRANT (OR ANY PREDECESSOR OF SUCH WARRANT), ONLY (A) TO THE COMPANY OR
      ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
      BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS
      WARRANT IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
      ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
      BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR
      ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
      WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
      144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PURCHASERS THAT OCCUR
      OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
      SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE
      MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
      SECURITIES ACT THAT IS ACQUIRING THIS WARRANT FOR ITS OWN ACCOUNT, OR FOR
      THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT
      PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH,
      ANY DISTRIBUTION IN VIOLATION OF THE

                                      A-1

<PAGE>

      SECURITIES ACT OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S
      AND THE WARRANT AGENT'S, OR TRANSFER AGENT'S, AS APPLICABLE, RIGHT PRIOR
      TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D), (E) OR (F) TO
      REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
      INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING
      CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE
      OF THIS WARRANT IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
      WARRANT AGENT OR THE TRANSFER AGENT. THIS LEGEND WILL BE REMOVED UPON THE
      REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

      THIS WARRANT WAS INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE
      "UNITS"), EACH OF WHICH CONSISTS OF $1,000 PRINCIPAL AMOUNT OF THE
      COMPANY'S 11-1/2% SENIOR SECURED NOTES DUE 2011 (THE "NOTES") AND ONE
      WARRANT TO PURCHASE 8.947 SHARES OF THE COMPANY'S COMMON STOCK (THE
      "WARRANT SHARES").

      PRIOR TO THE EARLIEST TO OCCUR OF (I) 180 DAYS FOLLOWING THE CONSUMMATION
      OF THE OFFERING OF THE UNITS, (II) THE DATE ON WHICH A REGISTRATION
      STATEMENT FOR A REGISTERED EXCHANGE OFFER WITH RESPECT TO THE NOTES IS
      DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (III) THE DATE ON WHICH A
      SHELF REGISTRATION STATEMENT WITH RESPECT TO THE WARRANT SHARES IS
      DECLARED EFFECTIVE UNDER THE SECURITIES ACT AND (IV) SUCH DATE AS
      JEFFERIES & COMPANY, INC., AS THE INITIAL PURCHASER OF THE UNITS, IN ITS
      SOLE DISCRETION SHALL DETERMINE, THIS WARRANT MAY NOT BE TRANSFERRED OR
      EXCHANGED SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY AS, A
      UNIT (THE "SEPARATION DATE").

      THE HOLDER OF THIS WARRANT AND THE WARRANT SHARES TO BE ISSUED UPON ITS
      EXERCISE, BY ITS ACCEPTANCE HEREOF, AGREES NOT TO ENGAGE IN ANY HEDGING
      TRANSACTION UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. THE HOLDER OF
      THIS WARRANT AND THE WARRANT SHARES TO BE ISSUED UPON ITS EXERCISE, BY ITS
      ACCEPTANCE HEREOF, AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
      WARRANT OR ANY INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
      THE EFFECT OF THESE LEGENDS.

      THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT
      AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE
      BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
      PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE
      SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION

                                      A-2

<PAGE>

      3.5 OF THE WARRANT AGREEMENT, (II) THIS GLOBAL WARRANT MAY BE EXCHANGED IN
      WHOLE BUT NOT IN PART PURSUANT TO SECTION 3.5(a) OF THE WARRANT AGREEMENT,
      (III) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR
      CANCELLATION PURSUANT TO SECTION 3.8 OF THE WARRANT AGREEMENT AND (IV)
      THIS GLOBAL WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
      PRIOR WRITTEN CONSENT OF THE COMPANY.

                                      A-3

<PAGE>

                             VISKASE COMPANIES, INC.

                               WARRANT CERTIFICATE

CUSIP No.
No.                                                                     Warrants

      This Warrant Certificate certifies that Cede & Co., or its registered
assigns, is the registered holder of [ _____ ] Warrants expiring June 15, 2011
(the "Warrants") to purchase shares of common stock, par value $0.01 (the
"Common Stock"), of Viskase Companies, Inc., a Delaware corporation (the
"Company"). Each Warrant entitles the registered holder upon exercise at any
time from 9:00 a.m. on the Separation Date referred to below until 5:00 p.m. New
York City Time on June 15, 2011 to receive from the Company 8.947 fully paid and
nonassessable shares of Common Stock (the "Warrant Shares") at the initial
exercise price (the "Exercise Price") of $0.01 per share payable upon surrender
of this Warrant Certificate and payment of the Exercise Price at the office or
agency of the Warrant Agent (as hereinafter defined), but only subject to the
conditions set forth herein and in the Warrant Agreement (as hereinafter
defined) referred to on the reverse hereof. The Exercise Price and number of
Warrant Shares issuable upon exercise of the Warrants are subject to adjustment
upon the occurrence of certain events set forth in the Warrant Agreement.

      No Warrant may be exercised after 5:00 p.m., New York City Time on June
15, 2011. To the extent not exercised by such time, any such Warrant shall
become void.

      Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof and such further provisions shall
for all purposes have the same effect as though fully set forth at this place.

      This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent, as such term is used in the Warrant Agreement.

      This Warrant Certificate shall be governed by and construed in accordance
with the internal laws of the State of New York.

                                * * * * * * * * *

                                      A-4

<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
signed below.

DATED: June 29, 2004

                                       VISKASE COMPANIES, INC.

                                       By:_____________________________________
                                          Name:
                                          Title:

Countersigned:

WELLS FARGO BANK,
NATIONAL ASSOCIATION,
as Warrant Agent

By:_____________________________________
   Authorized Signature

                                      A-5

<PAGE>

                        [Reverse of Warrant Certificate]

      The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants expiring at 5:00 p.m. New York City time on June
15, 2011 entitling the holder on exercise to receive shares of Common Stock, and
are issued or to be issued pursuant to a Warrant Agreement dated as of June 29,
2004 (the "Warrant Agreement"), duly executed and delivered by the Company to
Wells Fargo Bank, N.A., as the initial warrant agent (the "Warrant Agent"),
which Warrant Agreement is hereby incorporated by reference in and made a part
of this instrument and is hereby referred to for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Warrant Agent, the Company and the holders (the words "holders" or "holder"
meaning the registered holders or registered holder) of the Warrants.
Capitalized terms used but not defined herein have the meaning ascribed to such
terms in the Warrant Agreement. A copy of the Warrant Agreement may be obtained
by the holder hereof upon written request to the Company.

      Warrants may be exercised at any time on or after the Separation Date and
on or before 5:00 p.m. New York City time on June 15, 2011. In order to exercise
all or any of the Warrants represented by this Warrant Certificate, the holder
must deliver to the Warrant Agent at its corporate trust office set forth in
Section 15 of the Warrant Agreement this Warrant Certificate and the form of
election to purchase on the reverse hereof duly completed and signed, which
signature shall be medallion guaranteed by an institution which is a member of a
Securities Transfer Association recognized signature guarantee program, and upon
payment to the Warrant Agent for the account of the Company of the Exercise
Price, for the number of Warrant Shares in respect of which such Warrants are
then exercised. No adjustment shall be made for any dividends on any Common
Stock issuable upon exercise of this Warrant.

      The Warrant Agreement provides that upon the occurrence of certain events
the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted; provided that no adjustment may be made that reduces
the Exercise Price below the par value of the Common Stock. If the Exercise
Price is adjusted, the Warrant Agreement provides that the number of shares of
Common Stock issuable upon the exercise of each Warrant shall be adjusted. No
fractions of a share of Common Stock will be issued upon the exercise of any
Warrant, but the Company will pay the cash value thereof determined as provided
in the Warrant Agreement.

      The Company has agreed pursuant to an Equity Registration Rights Agreement
dated as of June 29, 2004 by and among the Company and the Initial Purchaser
(the "Equity Registration Rights Agreement") to, within 180 days of the Closing
Date, use reasonable best efforts to file a shelf registration statement on an
appropriate form under the Securities Act covering the resale of the Warrant
Shares. The Company will use reasonable best efforts to cause such registration
statement to become effective within 270 days of the Closing Date. The Company
will use its reasonable best efforts to keep such registration statement
continuously effective, subject to certain exceptions, under the Securities Act
in order to permit the resale of the Warrant Shares by the holders thereof for
the earlier of (i) two years or (ii) until such time as all registrable
securities have been sold pursuant to such registration statement. The Company
shall use its reasonable best efforts to keep such shelf registration statement
continuously effective under the Securities Act until at least the earlier of
(i) an aggregate of 180 days after the effective date

                                      A-6

<PAGE>

thereof or (ii) the consummation of the distribution by the holders of all of
the Warrant Shares covered thereby. In addition, pursuant to the Equity
Registration Rights Agreement, subject to certain limitations, the Company has
agreed to provide the holders certain "piggyback" registration rights if at any
time after the Closing Date the Company proposes to file a registration
statement with respect to an offering of its Common stock.

      Warrant Certificates, when surrendered at the corporate trust office of
the Warrant Agent by the registered holder thereof in person or by legal
representative or attorney duly authorized in writing, may be exchanged, in the
manner and subject to the limitations provided in the Warrant Agreement, but
without payment of any service charge, for another Warrant Certificate or
Warrant Certificates of like tenor evidencing in the aggregate a like number of
Warrants.

      Upon due presentation for registration of transfer of this Warrant
Certificate at the corporate trust office of the Warrant Agent a new Warrant
Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants shall be issued to the transferee(s) in
exchange for this Warrant Certificate, subject to the limitations provided in
the Warrant Agreement, without charge except for any tax or other governmental
charge imposed in connection therewith.

      Each holder, by its acceptance of this Warrant, agrees to be bound by the
terms of the Warrant Agreement and the Equity Registration Rights Agreement, and
all such replacements thereof, and each holder hereby authorizes the Warrant
Agent to bind the holders to the extent provided in the Warrant Agreement.

      The Company and the Warrant Agent may deem and treat the registered
holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants nor this Warrant Certificate entitles any holder hereof to any rights
of a stockholder of the Company.

                                      A-7

<PAGE>

                         [Form of Election to Purchase]

                    (To Be Executed Upon Exercise Of Warrant)

      The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive __________ shares of Common
Stock and herewith tenders payment for such shares to the order of Viskase
Companies, Inc., [cash] [Warrants] [Notes] equal [in fair market value] [in
principal amount] to $__________ in accordance with the terms hereof. The
undersigned requests that a certificate for such shares be registered in the
name of _______________, whose address is __________________ and that such
shares be delivered to ___________, whose address is
____________________________. If said number of shares is less than all of the
shares of Common Stock purchasable hereunder, the undersigned requests that a
new Warrant Certificate representing the remaining balance of such shares be
registered in the name of ______________________, whose address is
____________________, and that such Warrant Certificate be delivered to whose
address is ____________________.

                                                    ___________________________
                                                    Signature

Date:

                                                    ___________________________
                                                    Signature Guaranteed

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Warrant Agent, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("Stamp") or such
other "signature guarantee program" as may be determined by the Warrant Agent in
addition to, or in substitution for, Stamp, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                      A-8

<PAGE>

                             VISKASE COMPANIES, INC.

                             COUNTERSIGNATURE ORDER

                                                                   June 29, 2004

Wells Fargo Bank, N.A.
Sixth and Marquette
Minneapolis, MN 55479
Attn: Jane Y. Schweiger

            Re: 90,000 WARRANTS TO PURCHASE COMMON STOCK

Ladies and Gentlemen:

            Pursuant to Section 3.2 of the Warrant Agreement dated as the date
hereof (the "Indenture"), among Viskase Companies, Inc., a Delaware corporation
(the "Company"), and Wells Fargo Bank, N.A., as warrant agent (the "Warrant
Agent"), relating to the Company's 90,000 Warrants (as defined in the Warrant
Agreement) to purchase its Common Stock (as defined in the Warrant Agreement),
you are hereby directed (i) to countersign on June 29, 2004, in the manner
provided in the Warrant Agreement, the Warrants, heretofore duly executed by a
proper officer of the Company and delivered to you as provided in the Warrant
Agreement, (ii) to deliver such countersigned Warrants in the denominations and
registered in the names heretofore requested by Jefferies & Company, Inc. and
(iii) to hold the certificates representing the Warrants, as custodian for The
Depository Trust Company.

                                         Very truly yours,

                                         VISKASE COMPANIES, INC.

                                         By:___________________________________
                                            Name:
                                            Title:

                                      A-9

<PAGE>

                   WARRANT AGENT CERTIFICATE OF AUTHENTICATION

            This is one of the Warrants referred to in the within-mentioned
Warrant Agreement.

                                            WELLS FARGO BANK, N.A.,

                                            as Warrant Agent

Dated: ______, 2004                         By: _______________________________
                                                  Authorized Signatory

                                      A-10

<PAGE>

                                    EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Viskase Companies, Inc.
625 Willowbrook Centre Parkway
Willowbrook, Illinois 60527

Wells Fargo Bank, National Association
Sixth St. and Marquette Ave.
MAC N9303-120
Minneapolis, MN 55479
Attn: Corporate Trust Services

      Re: Warrants

      Reference is hereby made to the Warrant Agreement, dated as of June 29,
2004 (the "Warrant Agreement"), between Viskase Companies, Inc., as issuer (the
"Company"), and Wells Fargo Bank, National Association, as warrant agent.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Warrant Agreement.

      ___________________, (the "Transferor") owns and proposes to transfer the
___________ Warrant[s] or interest in such Warrant[s] specified in Annex A
hereto (the "Transfer"), to ________________________ (the "Transferee"), as
further specified in Annex A hereto. In connection with the Transfer, the
Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

      1. [ ] Check if Transferee Will Take Delivery of a Beneficial Interest in
the 144A Global Warrant or a Definitive Warrant Pursuant to Rule 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the United States Securities Act of 1933, as amended (the "Securities Act"),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Warrant is being transferred to a Person that the
Transferor reasonably believed and believes is purchasing the beneficial
interest or Definitive Warrant for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and such
Person and each such account is a "qualified institutional buyer" within the
meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and
such Transfer is in compliance with any applicable blue sky securities laws of
any state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Warrant Agreement, the transferred beneficial
interest or Definitive Warrant will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Warrant
and/or the Definitive Warrant and in the Warrant Agreement and the Securities
Act.

      2. [ ] Check if Transferee Will Take Delivery of a Beneficial Interest in
the Regulation S Global Warrant or a Definitive Warrant Pursuant to Regulation
S. The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act

                                      B-1

<PAGE>

and, accordingly, the Transferor hereby further certifies that (i) the Transfer
is not being made to a person in the United States and (x) at the time the buy
order was originated, the Transferee was outside the United States or such
Transferor and any Person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (ii) no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being
made prior to the expiration of the Restricted Period, the transfer is not being
made to a U.S. Person or for the account or benefit of a U.S. Person (other than
an Initial Purchaser). Upon consummation of the proposed transfer in accordance
with the terms of the Warrant Agreement, the transferred beneficial interest or
Definitive Warrant will be subject to the restrictions on Transfer enumerated in
the Private Placement Legend printed on the Regulation S Global Warrant and/or
the Definitive Warrant and in the Warrant Agreement and the Securities Act.

      3. [ ] Check and Complete if Transferee Will Take Delivery of a Beneficial
Interest in the IAI Global Warrant or a Definitive Warrant Pursuant to any
Provision of the Securities Act other than Rule 144A or Regulation S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Warrants and Restricted
Definitive Warrants and pursuant to and in accordance with the Securities Act
and any applicable blue sky securities laws of any state of the United States,
and accordingly the Transferor hereby further certifies that (check one):

            (a) [ ] such Transfer is being effected pursuant to and in
      accordance with Rule 144 under the Securities Act; or

            (b) [ ] such Transfer is being effected to the Company or a
      subsidiary thereof or

            (c) [ ] such Transfer is being effected to an Institutional
      Accredited Investor and pursuant to an exemption from the registration
      requirements of the Securities Act other than Rule 144A, Rule 144 or Rule
      904, and the Transferor hereby further certifies that it has not engaged
      in any general solicitation within the meaning of Regulation D under the
      Securities Act and the Transfer complies with the transfer restrictions
      applicable to beneficial interests in a Restricted Global Warrant or
      Restricted Definitive Warrants and the requirements of the exemption
      claimed, which certification is supported by (1) a certificate executed by
      the Transferee in the form of Exhibit D to the Warrant Agreement and (2)
      if the Company requests, an Opinion of Counsel provided by the Transferor
      or the Transferee (a copy of which the Transferor has attached to this
      certification), to the effect that such Transfer is in compliance with the
      Securities Act. Upon consummation of the proposed transfer in accordance
      with the terms of the Warrant Agreement, the transferred beneficial
      interest or Definitive Warrant will be subject to the restrictions on
      transfer enumerated in the Private Placement Legend printed on the IAI
      Global Warrant and/or the Definitive Warrants and in the Warrant Agreement
      and the Securities Act.

                                      B-2

<PAGE>

      4. [ ] Check if Transferee Will Take Delivery of a Beneficial Interest in
an Unrestricted Global Warrant or of an Unrestricted Definitive Warrant.

            (a) [ ] Check if Transfer is Pursuant to Rule 144. (i) The Transfer
      is being effected pursuant to and in accordance with Rule 144 under the
      Securities Act and in compliance with the transfer restrictions contained
      in the Warrant Agreement and any applicable blue sky securities laws of
      any state of the United States and (ii) the restrictions on transfer
      contained in the Warrant Agreement and the Private Placement Legend are
      not required in order to maintain compliance with the Securities Act. Upon
      consummation of the proposed Transfer in accordance with the terms of the
      Warrant Agreement, the transferred beneficial interest or Definitive
      Warrant will no longer be subject to the restrictions on transfer
      enumerated in the Private Placement Legend printed on the Restricted
      Global Warrants, on Restricted Definitive Warrants and in the Warrant
      Agreement.

            (b) [ ] Check if Transfer is Pursuant to Regulation S. (i) The
      Transfer is being effected pursuant to and in accordance with Rule 903 or
      Rule 904 under the Securities Act and in compliance with the transfer
      restrictions contained in the Warrant Agreement and any applicable blue
      sky securities laws of any state of the United States and (ii) the
      restrictions on transfer contained in the Warrant Agreement and the
      Private Placement Legend are not required in order to maintain compliance
      with the Securities Act. Upon consummation of the proposed Transfer in
      accordance with the terms of the Warrant Agreement, the transferred
      beneficial interest or Definitive Warrant will no longer be subject to the
      restrictions on transfer enumerated in the Private Placement Legend
      printed on the Restricted Global Warrants, on Restricted Definitive
      Warrants and in the Warrant Agreement.

            (c) [ ] Check if Transfer is Pursuant to Other Exemption. (i) The
      Transfer is being effected pursuant to and in compliance with an exemption
      from the registration requirements of the Securities Act other than Rule
      144, Rule 903 or Rule 904 and in compliance with the transfer restrictions
      contained in the Warrant Agreement and any applicable blue sky securities
      laws of any State of the United States and (ii) the restrictions on
      transfer contained in the Warrant Agreement and the Private Placement
      Legend are not required in order to maintain compliance with the
      Securities Act. Upon consummation of the proposed Transfer in accordance
      with the terms of the Warrant Agreement, the transferred beneficial
      interest or Definitive Warrant will not be subject to the restrictions on
      transfer enumerated in the Private Placement Legend printed on the
      Restricted Global Warrants or Restricted Definitive Warrants and in the
      Warrant Agreement.

      This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                       [Insert Name of Transferor]

                                       By:_____________________________________

                                      B-3

<PAGE>

                                           Name:
                                           Title:

Dated: _____________________

                                      B-4

<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

      1.    The Transferor owns and proposes to transfer the following:

            [CHECK ONE OF (a) OR (b)]

            (a) [ ] a beneficial interest in the:

                (i)      [ ]  144A Global Warrant, or
                (ii)     [ ]  Regulation S Global Warrant, or
                (iii)    [ ]  IAI Global Warrant, or

            (b) [ ] a Restricted Definitive Warrant.

      2.    After the Transfer the Transferee will hold:

            [CHECK ONE]

            (a) [ ] a beneficial interest in the:

                (i)      [ ]  144A Global Warrant, or
                (ii)     [ ]  Regulation S Global Warrant, or
                (iii)    [ ]  Unrestricted Global Warrant; or
                (iv)     [ ]  Regulation S Global Warrant; or

            (b) [ ] a Restricted Definitive Warrant; or

            (c) [ ] an Unrestricted Definitive Warrant,

            in accordance with the terms of the Warrant Agreement.

                                      B-5

<PAGE>

                                    EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Viskase Companies, Inc.
625 Willowbrook Centre Parkway
Willowbrook, Illinois 60527

Wells Fargo Bank, National Association
Sixth St. and Marquette Ave.
MAC N9303-120
Minneapolis, MN 55479
Attn: Corporate Trust Services

      Re: Warrants

                              (CUSIP ____________)

      Reference is hereby made to the Warrant Agreement, dated as of June 29,
2004 (the "Warrant Agreement"), between Viskase Companies, Inc., as issuer (the
"Company"), and Wells Fargo Bank, National Association, as warrant agent.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Warrant Agreement.

      __________________________, (the "Owner") owns and proposes to exchange
________________ Warrant[s] or interest in such Warrant[s] specified herein (the
"Exchange"). In connection with the Exchange, the Owner hereby certifies that:

      3. Exchange of Restricted Definitive Warrants or Beneficial Interests in a
Restricted Global Warrant for Unrestricted Definitive Warrants or Beneficial
Interests in an Unrestricted Global Warrant.

            (a) [ ] Check if Exchange is from Beneficial Interest in a
      Restricted Global Warrant to Beneficial Interest in an Unrestricted Global
      Warrant. In connection with the Exchange of the Owner's beneficial
      interest in a Restricted Global Warrant for a beneficial interest in an
      Unrestricted Global Warrant in an equal principal amount, the Owner hereby
      certifies (i) the beneficial interest is being acquired for the Owner's
      own account without transfer, (ii) such Exchange has been effected in
      compliance with the transfer restrictions applicable to the Global
      Warrants and pursuant to and in accordance with the United States
      Securities Act of 1933, as amended (the "Securities Act"), (iii) the
      restrictions on transfer contained in the Warrant Agreement and the
      Private Placement Legend are not required in order to maintain compliance
      with the Securities Act and (iv) the beneficial interest in an
      Unrestricted Global Warrant is being acquired in compliance with any
      applicable blue sky securities laws of any state of the United States.

            (b) [ ] Check if Exchange is from Beneficial Interest in a
      Restricted Global Warrant to Unrestricted Definitive Warrant. In
      connection with the Exchange of the Owner's beneficial interest in a
      Restricted Global Warrant for an Unrestricted Definitive

                                      C-1

<PAGE>

      Warrant, the Owner hereby certifies (i) the Definitive Warrant is being
      acquired for the Owner's own account without transfer, (ii) such Exchange
      has been effected in compliance with the transfer restrictions applicable
      to the Restricted Global Warrants and pursuant to and in accordance with
      the Securities Act, (iii) the restrictions on transfer contained in the
      Warrant Agreement and the Private Placement Legend are not required in
      order to maintain compliance with the Securities Act and (iv) the
      Definitive Warrant is being acquired in compliance with any applicable
      blue sky securities laws of any state of the United States.

            (c) [ ] Check If Exchange Is from Restricted Definitive Warrant to
      Beneficial Interest in an Unrestricted Global Warrant. In connection with
      the Owner's Exchange of a Restricted Definitive Warrant for a beneficial
      interest in an Unrestricted Global Warrant, the Owner hereby certifies (i)
      the beneficial interest is being acquired for the Owner's own account
      without transfer, (ii) such Exchange has been effected in compliance with
      the transfer restrictions applicable to Restricted Definitive Warrants and
      pursuant to and in accordance with the Securities Act, (iii) the
      restrictions on transfer contained in the Warrant Agreement and the
      Private Placement Legend are not required in order to maintain compliance
      with the Securities Act and (iv) the beneficial interest is being acquired
      in compliance with any applicable blue sky securities laws of any state of
      the United States.

            (d) [ ] Check if Exchange is from Restricted Definitive Warrant to
      Unrestricted Definitive Warrant. In connection with the Owner's Exchange
      of a Restricted Definitive Warrant for an Unrestricted Definitive Warrant,
      the Owner hereby certifies (i) the Unrestricted Definitive Warrant is
      being acquired for the Owner's own account without transfer, (ii) such
      Exchange has been effected in compliance with the transfer restrictions
      applicable to Restricted Definitive Warrants and pursuant to and in
      accordance with the Securities Act, (iii) the restrictions on transfer
      contained in the Warrant Agreement and the Private Placement Legend are
      not required in order to maintain compliance with the Securities Act and
      (iv) the Unrestricted Definitive Warrant is being acquired in compliance
      with any applicable blue sky securities laws of any state of the United
      States.

      4. Exchange of Restricted Definitive Warrants or Beneficial Interests in
Restricted Global Warrants for Restricted Definitive Warrants or Beneficial
Interests in Restricted Global Warrants.

            (a) [ ] Check if Exchange is from Beneficial Interest in a
      Restricted Global Warrant to Restricted Definitive Warrant. In connection
      with the Exchange of the Owner's beneficial interest in a Restricted
      Global Warrant for a Restricted Definitive Warrant in a number equal to
      the number of beneficial interests exchanged, the Owner hereby certifies
      that the Restricted Definitive Warrant is being acquired for the Owner's
      own account without transfer. Upon consummation of the proposed Exchange
      in accordance with the terms of the Warrant Agreement, the Restricted
      Definitive Warrant issued will continue to be subject to the restrictions
      on transfer enumerated in the Private Placement Legend printed on the
      Restricted Definitive Warrant and in the Warrant Agreement and the
      Securities Act.

                                      C-2

<PAGE>

            (b) [ ] Check if Exchange is from Restricted Definitive Warrant to
      Beneficial Interest in a Restricted Global Warrant. In connection with the
      Exchange of the Owner's Restricted Definitive Warrant for a beneficial
      interest in the [CHECK ONE] [ ] 144A Global Warrant, [ ] Regulation S
      Global Warrant, [ ] IAI Global Warrant in a number equal to the number of
      beneficial interests exchanged, the Owner hereby certifies (i) the
      beneficial interest is being acquired for the Owner's own account without
      transfer and (ii) such Exchange has been effected in compliance with the
      transfer restrictions applicable to the Restricted Global Warrants and
      pursuant to and in accordance with the Securities Act, and in compliance
      with any applicable blue sky securities laws of any state of the United
      States. Upon consummation of the proposed Exchange in accordance with the
      terms of the Warrant Agreement, the beneficial interest issued will be
      subject to the restrictions on transfer enumerated in the Private
      Placement Legend printed on the relevant Restricted Global Warrant and in
      the Warrant Agreement and the Securities Act.

      This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                       [Insert Name of Transferor]

                                       By:____________________________________
                                          Name:
                                          Title:

Date: _______________________

                                      C-3

<PAGE>

                                    EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Viskase Companies, Inc.
625 Willowbrook Centre Parkway
Willowbrook, Illinois 60527

Wells Fargo Bank, National Association
Sixth St. and Marquette Ave.
MAC N9303-120
Minneapolis, MN 55479
Attn: Corporate Trust Services

      Re: Warrants

      Reference is hereby made to the Warrant Agreement, dated as of June 29,
2004 (the "Warrant Agreement"), between Viskase Companies, Inc., as issuer (the
"Company"), and Wells Fargo Bank, National Association, as warrant agent.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Warrant Agreement.

      In connection with our proposed purchase of:

            (a) [ ] a beneficial interest in a Global Warrant representing the
right to acquire __________ Warrant Shares, or

            (b) [ ] a Definitive Warrant representing the right to acquire
__________ Warrant Shares,

we confirm that:

      5. We understand that any subsequent transfer of the Warrants or any
interest therein is subject to certain restrictions and conditions set forth in
the Warrant Agreement and the undersigned agrees to be bound by, and not to
resell, pledge or otherwise transfer the Warrants or any interest therein except
in compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "Securities Act").

      6. We understand that the offer and sale of the Warrants have not been
registered under the Securities Act, and that the Warrants and any interest
therein may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which we
are acting as hereinafter stated, that if we should sell the Warrants or any
interest therein, we will do so only (A) to the Company or any subsidiary
thereof, (B) in accordance with Rule 144A under the Securities Act to a
"qualified institutional buyer" (as defined therein), (C) to an institutional
"accredited investor" (as defined below) that, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to you and to the
Company a signed letter substantially in the form of this letter and, if
requested by the Company,

                                      D-1

<PAGE>

an Opinion of Counsel in form reasonably acceptable to the Company to the effect
that such transfer is in compliance with the Securities Act, (D) outside the
United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144(k) under the Securities Act or
(F) pursuant to an effective registration statement under the Securities Act,
and we further agree to provide to any person purchasing the Definitive Warrant
or beneficial interest in a Global Warrant from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising such
purchaser that resales thereof are restricted as stated herein.

      7. We understand that, on any proposed resale of the Warrants or
beneficial interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and the
Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Warrants purchased by
us will bear a legend to the foregoing effect.

      8. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Warrants, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

      9. We are acquiring the Warrants or beneficial interest therein purchased
by us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

      We agree not to engage in any hedging transactions with regard to the
Warrants unless such hedging transactions are in compliance with the Securities
Act.

      You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                       [Insert Name of Transferor]

                                       By:_____________________________________
                                          Name:
                                          Title:

Dated:  _______________________

                                      D-2

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