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                                                                   EXHIBIT 10.16

THIS COMMON STOCK PURCHASE WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND REGULATIONS THEREUNDER OR
THE PROVISIONS OF THIS COMMON STOCK PURCHASE WARRANT.

                    Number of Shares of Common Stock: ______

                          COMMON STOCK PURCHASE WARRANT

                           To Purchase Common Stock of

                              Immune Response, Inc.

                  THIS IS TO CERTIFY THAT _________, or its registered assigns,
is entitled, at any time from the Funding Date (as hereinafter defined) to the
Expiration Date (as hereinafter defined), to purchase from IMMUNE RESPONSE, INC.
, a Colorado corporation (the "COMPANY"), ________ shares of Common Stock (as
hereinafter defined and subject to adjustment as provided herein), in whole or
in part, including fractional parts, at a purchase price equal to $6.60 per
share, all on the terms and conditions and pursuant to the provisions
hereinafter set forth.

1.       DEFINITIONS
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                  As used in this Common Stock Purchase Warrant (this
"WARRANT"), the following terms have the respective meanings set forth below:

                  "ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of
Common Stock issued by the Company after the Funding Date, other than Warrant
Shares.

                  "BUSINESS DAY" shall mean any day that is not a Saturday or
Sunday or a day on which banks are required or permitted to be closed in the
State of New York.

                  "CERTIFICATE OF DESIGNATION" shall mean those articles of
amendment indicating the designations, rights and preferences of the Company's
Series A 6% Convertible Preferred Stock, as filed with the Secretary of State of
the State of Colorado on February 23, 2000.

                  "COMMISSION" shall mean the Securities and Exchange Commission
or any other federal agency then administering the Securities Act and other
federal securities laws.

                  "COMMON STOCK" shall mean (except where the context otherwise
indicates) the Common Stock, par value $0.0001, of the Company as constituted on
the Funding Date, and any capital stock into which such Common Stock may
thereafter be changed, and shall also include

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(i) capital stock of the Company of any other class (regardless of how
denominated) issued to the holders of shares of Common Stock upon any
reclassification thereof which is also not preferred as to dividends or assets
over any other class of stock of the Company and which is not subject to
redemption and (ii) shares of common stock of any successor or acquiring
corporation received by or distributed to the holders of Common Stock of the
Company in the circumstances contemplated by Section 4.4.

                  "CONVERTIBLE SECURITIES" shall mean evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable,
with or without payment of additional consideration in cash or property, for
shares of Common Stock, either immediately or upon the occurrence of a specified
date or a specified event.

                  "CURRENT WARRANT PRICE" shall mean, in respect of a share of
Common Stock at any date herein specified, the price at which a share of Common
Stock may be purchased pursuant to this Warrant on such date.

                  "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
as amended, or any successor federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect from time to time.

                  "EXERCISE PERIOD" shall mean the period during which this
Warrant is exercisable pursuant to Section 2.1.

                  "EXPIRATION DATE" shall mean February 28, 2005.

                  "FUNDING DATE" means the date and time of the issuance and
sale of the Preferred Shares and the Warrants (each as defined in the Securities
Purchase Agreement).

                  "HOLDER" shall mean the Person in whose name the Warrant or
Warrant Shares set forth herein is registered on the books of the Company
maintained for such purpose.

                  "MARKET PRICE" shall have the meaning set forth in the
Certificate of Designation.

                  "OTHER PROPERTY" shall have the meaning set forth in Section
4.4.

                  "OUTSTANDING" shall mean, when used with reference to Common
Stock, at any date as of which the number of shares thereof is to be determined,
all issued shares of Common Stock, except shares then owned or held by or for
the account of the Company or any subsidiary thereof, and shall include all
shares issuable in respect of outstanding scrip or any certificates representing
fractional interests in shares of Common Stock.

                  "PERSON" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, entity or government
(whether federal, state, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or department
thereof).

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                  "REGISTRATION RIGHTS AGREEMENT" shall mean the Registration
Rights Agreement dated a date even herewith by and between the Company and
__________., as it may be amended from time to time.

                  "RESTRICTED COMMON STOCK" shall mean shares of Common Stock
which are, or which upon their issuance on the exercise of this Warrant would
be, evidenced by a certificate bearing the restrictive legend set forth in
Section 9.1(a).

                  "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

                  "SECURITIES PURCHASE AGREEMENT" shall mean the Securities
Purchase Agreement dated as of a date even herewith by and between the Company
and _________ as it may be amended from time to time.

                  "TRANSFER" shall mean any disposition of any Warrant or
Warrant Shares or of any interest in either thereof, which would constitute a
sale thereof within the meaning of the Securities Act.

                  "TRANSFER NOTICE" shall have the meaning set forth in Section
9.2.

                  "WARRANTS" shall mean this Warrant and all warrants issued
upon transfer, division or combination of, or in substitution for, any thereof.
All Warrants shall at all times be identical as to terms and conditions and
date, except as to the number of shares of Common Stock for which they may be
exercised.

                  "WARRANT PRICE" shall mean an amount equal to (i) the number
of shares of Common Stock being purchased upon exercise of this Warrant pursuant
to Section 2.1, multiplied by (ii) the Current Warrant Price as of the date of
such exercise.

                  "WARRANT SHARES" shall mean the shares of Common Stock
purchased by the holders of the Warrants upon the exercise thereof.

2.       EXERCISE OF WARRANT
         -------------------

         2.1 MANNER OF EXERCISE. From and after the Funding Date and until 5:00
P.M., New York City time, on the Expiration Date, Holder may exercise this
Warrant, on any Business Day, for all or any part of the number of shares of
Common Stock purchasable hereunder.

                  In order to exercise this Warrant, in whole or in part, Holder
shall deliver to the Company at its principal office at 7315 E. Peakview Avenue,
Englewood, Colorado 80111, or at the office or agency designated by the Company
pursuant to Section 12, (i) a written notice of Holder's election to exercise
this Warrant, which notice shall specify the number of shares of Common Stock to
be purchased, (ii) payment of the Warrant Price in cash or by wire transfer or
cashier's check drawn on a United States bank and (iii) this Warrant. Such
notice shall be substantially in the form of the subscription form appearing at
the end of this Warrant as Exhibit

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A, duly executed by Holder or its agent or attorney. Upon receipt of the items
referred to in clauses (i), (ii) and (iii) above, the Company shall, as promptly
as practicable, and in any event within five (5) Business Days thereafter,
execute or cause to be executed and deliver or cause to be delivered to Holder a
certificate or certificates representing the aggregate number of full shares of
Common Stock issuable upon such exercise, together with cash in lieu of any
fraction of a share, as hereinafter provided. The stock certificate or
certificates so delivered shall be, to the extent possible, in such denomination
or denominations as Holder shall request in the notice and shall be registered
in the name of Holder or, subject to Section 9, such other name as shall be
designated in the notice. This Warrant shall be deemed to have been exercised
and such certificate or certificates shall be deemed to have been issued, and
Holder or any other Person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the notice, together with the cash or check or checks and this Warrant, is
received by the Company as described above and all taxes required to be paid by
Holder, if any, pursuant to Section 2.2 prior to the issuance of such shares
have been paid. If this Warrant shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant,
or, at the request of Holder, appropriate notation may be made on this Warrant
and the same returned to Holder. Notwithstanding any provision herein to the
contrary, the Company shall not be required to register shares in the name of
any Person who acquired this Warrant (or part hereof) or any Warrant Shares
otherwise than in accordance with this Warrant.

         2.2 PAYMENT OF TAXES AND CHARGES. All shares of Common Stock issuable
upon the exercise of this Warrant pursuant to the terms hereof shall be validly
issued, fully paid and nonassessable and without any preemptive rights. The
Company shall pay all expenses in connection with, and all taxes and other
governmental charges that may be imposed with respect to, the issue or delivery
thereof, unless such tax or charge is imposed by law upon Holder, in which case
such taxes or charges shall be paid by Holder. The Company shall not be
required, however, to pay any tax or other charge imposed in connection with any
transfer involved in the issue of any certificate for shares of Common Stock
issuable upon exercise of this Warrant in any name other than that of Holder,
and in such case the Company shall not be required to issue or deliver any stock
certificate until such tax or other charge has been paid or it has been
established to the satisfaction of the Company that no such tax or other charge
is due.

         2.3 FRACTIONAL SHARES. The Company shall not be required to issue a
fractional share of Common Stock upon exercise of any Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to the same fraction of the Market Price per share
of Common Stock as of the Initial Funding Date.

         2.4 CONTINUED VALIDITY. A holder of shares of Common Stock issued upon
the exercise of this Warrant, in whole or in part (other than a holder who
acquires such shares after the same have been publicly sold pursuant to a
Registration Statement under the Securities Act or sold pursuant to Rule 144
thereunder), shall continue to be entitled with respect to such shares to all
rights to which it would have been entitled as Holder under Sections 9, 10 and
14 of this Warrant. The Company will, at the time of exercise of this Warrant,
in whole or in part, upon the

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request of Holder, acknowledge in writing, in form reasonably satisfactory to
Holder, its continuing obligation to afford Holder all such rights; provided,
however, that if Holder shall fail to make any such request, such failure shall
not affect the continuing obligation of the Company to afford to Holder all such
rights.

3.       TRANSFER, DIVISION AND COMBINATION
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         3.1 TRANSFER. Subject to compliance with the Securities Purchase
Agreement and Section 3.1 and Section 9 herein, transfer of this Warrant and all
rights hereunder, in whole or in part, shall be registered on the books of the
Company to be maintained for such purpose, upon surrender of this Warrant at the
principal office of the Company referred to in Section 2.1 or the office or
agency designated by the Company pursuant to Section 12, together with a written
assignment of this Warrant substantially in the form of Exhibit B hereto duly
executed by Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall, subject to Section 9, execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees
and in the denomination specified in such instrument of assignment, and shall
issue to the assignor a new Warrant evidencing the portion of this Warrant not
so assigned, and this Warrant shall promptly be cancelled. A Warrant, if
properly assigned in compliance with Section 9, may be exercised by a new Holder
for the purchase of shares of Common Stock without having a new warrant issued.

         3.2 DIVISION AND COMBINATION. Subject to Section 3.1 and 9, this
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office or agency of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by Holder or its agent or attorney. Subject to compliance with Section
3.1 and with Section 9, as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

         3.3 EXPENSES. The Company shall prepare, issue and deliver at its own
expense (other than transfer taxes) the new Warrant or Warrants under this
Section 3.

         3.4 MAINTENANCE OF BOOKS. The Company agrees to maintain, at its
aforesaid office or agency, books for the registration and the registration of
transfer of the Warrants.

4.       ADJUSTMENTS
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         The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise of
this Warrant, shall be subject to adjustment from time to time as set forth in
this Section 4. The Company shall give Holder notice of any event described
below which requires an adjustment pursuant to this Section 4 at the time of
such event.

         4.1      STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at any time
the Company shall:

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                  (a) take a record of the holders of its Common Stock for the
         purpose of entitling them to receive a dividend payable in, or other
         distribution of, Additional Shares of Common Stock,

                  (b) subdivide its outstanding shares of Common Stock into a
         larger number of shares of Common Stock, or

                  (c) combine its outstanding shares of Common Stock into a
         smaller number of shares of Common Stock,

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be adjusted
to equal the number of shares of Common Stock which a record holder of the same
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the occurrence of such event would own or be entitled to
receive after the happening of such event, and (ii) the Current Warrant Price
shall be adjusted to equal (A) the Current Warrant Price multiplied by the
number of shares of Common Stock for which this Warrant is exercisable
immediately prior to the adjustment divided by (B) the number of shares for
which this Warrant is exercisable immediately after such adjustment.

         4.2      CERTAIN OTHER DISTRIBUTIONS.  If at any time the Company shall
take a record of the holders of its Common Stock for the purpose of entitling
them to receive any dividend or other distribution of:

                  (a)      cash,

                  (b) any evidences of its indebtedness, any shares of its stock
         or any other securities or property of any nature whatsoever (other
         than cash, Convertible Securities or Additional Shares of Common
         Stock), or

                  (c) any warrants or other rights to subscribe for or purchase
         any evidences of its indebtedness, any shares of its stock or any other
         securities or property of any nature whatsoever (other than cash,
         Convertible Securities or Additional Shares of Common Stock),

then Holder shall be entitled to receive such dividend or distribution as if
Holder had exercised this Warrant. A reclassification of the Common Stock (other
than a change in par value, or from par value to no par value or from no par
value to par value) into shares of Common Stock and shares of any other class of
stock shall be deemed a distribution by the Company to the holders of its Common
Stock of such shares of such other class of stock within the meaning of this
Section 4.2 and, if the outstanding shares of Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, as
the case may be, of the outstanding shares of Common Stock within the meaning of
Section 4.1.

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         4.3 OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS SECTION. The
following provisions shall be applicable to the making of adjustments of the
number of shares of Common Stock for which this Warrant is exercisable and the
Current Warrant Price provided for in this Section 4:

                  (a) WHEN ADJUSTMENTS TO BE MADE. The adjustments required by
         this Section 4 shall be made whenever and as often as any specified
         event requiring an adjustment shall occur. For the purpose of any
         adjustment, any specified event shall be deemed to have occurred at the
         close of business on the date of its occurrence.

                  (b) FRACTIONAL INTERESTS. In computing adjustments under this
         Section 4, fractional interests in Common Stock shall be taken into
         account to the nearest 1/10th of a share.

                  (c) WHEN ADJUSTMENT NOT REQUIRED. If the Company shall take a
         record of the holders of its Common Stock for the purpose of entitling
         them to receive a dividend or distribution or subscription or purchase
         rights and shall, thereafter and before the distribution to
         stockholders thereof, legally abandon its plan to pay or deliver such
         dividend, distribution, subscription or purchase rights, then
         thereafter no adjustment shall be required by reason of the taking of
         such record and any such adjustment previously made in respect thereof
         shall be rescinded and annulled.

                  (d) CHALLENGE TO GOOD FAITH DETERMINATION. Whenever the Board
         of Directors of the Company shall be required to make a determination
         in good faith of the fair value of any item under this Section 4, such
         determination may be challenged in good faith by the Holder, and any
         dispute shall be resolved by an investment banking firm of recognized
         national standing selected by the Company and acceptable to the Holder.

         4.4 REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION OR
DISPOSITION OF ASSETS. If the Company shall reorganize its capital, reclassify
its capital stock, consolidate or merge with or into another corporation (where
the Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of all or substantially all its property, assets or
business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("OTHER
PROPERTY"), are to be received by or distributed to the holders of Common Stock
of the Company, then Holder shall have the right thereafter to receive, upon
exercise of the Warrant, the number of shares of common stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In the case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be

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performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as
determined by resolution of the Board of Directors of the Company) in order to
provide for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 4. For purposes of this Section 4.4,
"common stock of the successor or acquiring corporation" shall include stock of
such corporation of any class which is not preferred as to dividends or assets
over any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 4.4 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations or disposition of assets.

         4.5 OTHER ACTION AFFECTING COMMON STOCK. If at any time or from time to
time the Company shall take any action in respect of its Common Stock, other
than any action described in this Section 4, which would have a materially
adverse effect upon the rights of the Holder, the number of shares of Common
Stock and/or the purchase price thereof shall be adjusted in such manner as may
be equitable in the circumstances, as determined in good faith by the Board of
Directors of the Company.

         4.6 CERTAIN LIMITATIONS. Notwithstanding anything herein to the
contrary, the Company agrees not to enter into any transaction which, by reason
of any adjustment hereunder, would cause the Current Warrant Price to be less
than the par value per share of Common Stock.

5.       NOTICES TO HOLDER
         -----------------

         5.1 NOTICE OF ADJUSTMENTS. Whenever the number of shares of Common
Stock for which this Warrant is exercisable, or whenever the price at which a
share of such Common Stock may be purchased upon exercise of the Warrants, shall
be adjusted pursuant to Section 4, the Company shall forthwith prepare a
certificate to be executed by the chief financial officer of the Company setting
forth, in reasonable detail, the event requiring the adjustment and the method
by which such adjustment was calculated (including a description of the basis on
which the Board of Directors of the Company determined the fair value of any
evidences of indebtedness, shares of stock, other securities or property or
warrants or other subscription or purchase rights referred to in Section 4.2),
specifying the number of shares of Common Stock for which this Warrant is
exercisable and (if such adjustment was made pursuant to Section 4.4 or 4.5)
describing the number and kind of any other shares of stock or Other Property
for which this warrant is exercisable, and any change in the purchase price or
prices thereof, after giving effect to such adjustment or change. The Company
shall promptly cause a signed copy of such certificate to be delivered to the
Holder in accordance with Section 14.2. The Company shall keep at its office or
agency designated pursuant to Section 12 copies of all such certificates and
cause the same to be available for inspection at said office during normal
business hours by the Holder or any prospective purchaser of a Warrant
designated by the Holder.

         5.2      NOTICE OF CORPORATE ACTION.  If at any time

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                  (a) the Company shall take a record of the holders of its
         Common Stock for the purpose of entitling them to receive a dividend or
         other distribution, or any right to subscribe for or purchase any
         evidences of its indebtedness, any shares of stock of any class or any
         other securities or property, or to receive any other right, or

                  (b) there shall be any capital reorganization of the Company,
         any reclassification or recapitalization of the capital stock of the
         Company or any consolidation or merger of the Company with, or any
         sale, transfer or other disposition of all or substantially all the
         property, assets or business of the Company to, another corporation, or

                  (c) there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 30 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, and (ii) in the case of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up, at least 30 days' prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Stock
shall be entitled to any such dividend, distribution or right, and the amount
and character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their shares of Common Stock for securities or other
property deliverable upon such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up. Each such written notice shall be sufficiently given if addressed to Holder
at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 14.2.

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6.       NO IMPAIRMENT
         -------------

         (a) The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder
against impairment. Without limiting the generality of the foregoing, the
Company will (i) not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant above the amount payable therefor
upon such exercise immediately prior to such increase in par value, (ii) take
all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of Common Stock
upon the exercise of this warrant, and (iii) use its best efforts to obtain all
such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be necessary to enable the Company to perform
its obligations under this Warrant.

         (b) Upon the request of Holder, the Company will at any time during the
period this Warrant is outstanding acknowledge in writing, in form satisfactory
to Holder, the continuing validity of this Warrant and the obligations of the
Company hereunder.

7.       RESERVATION AND AUTHORIZATION OF COMMON STOCK
         ---------------------------------------------

         (a) From and after the Funding Date, the Company shall at all times
reserve and keep available for issue upon the exercise of Warrants such number
of its authorized but unissued shares of Common Stock as will be sufficient to
permit the exercise in full of all outstanding Warrants. All shares of Common
Stock which shall be so issuable, when issued upon exercise of any Warrant and
payment therefor in accordance with the terms of such Warrant, shall be duly and
validly issued and fully paid and nonassessable, and not subject to preemptive
rights.

         (b) Before taking any action which would cause an adjustment reducing
the Current Warrant Price below the then par value, if any, of the shares of
Common Stock issuable upon exercise of the Warrants, the Company shall take any
corporate action which may be necessary in order that the Company may validly
and legally issue fully paid and non-assessable shares of such Common Stock at
such adjusted Current Warrant Price.

         (c) Before taking any action which would result in an adjustment in the
number of shares of Common Stock for which this Warrant is exercisable or in the
Current Warrant Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

8.       TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS
         --------------------------------------------------

         In the case of all dividends or other distributions by the Company to
the holders of its Common Stock with respect to which any provision of Section 4
refers to the taking of a record of such holders, the Company will in each such
case take such a record and will take such record as of the close of business on
a Business Day. The Company will not at any time, except upon

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dissolution, liquidation or winding up of the Company, close its stock transfer
books or Warrant transfer books so as to result in preventing or delaying the
exercise or transfer of any Warrant.

9.       RESTRICTIONS ON TRANSFERABILITY
         -------------------------------

         The Warrants and the Warrant Shares shall not be transferred,
hypothecated or assigned before satisfaction of the conditions specified in this
Section 9, which conditions are intended to ensure compliance with the
provisions of the Securities Act with respect to the Transfer of any Warrant or
any Warrant Shares. Holder, by acceptance of this Warrant, agrees to be bound by
the provisions of this Section 9.

         9.1 RESTRICTIVE LEGEND. (a) The Holder by accepting this Warrant and
any Warrant Shares agrees that unless registered under the Securities Act of
1933, as amended (the "SECURITIES ACT"), subsequent to the Funding Date and
prior to the exercise hereof, this Warrant and the Warrant Shares issuable upon
exercise hereof may not be assigned or otherwise transferred unless and until
(i) the Company has received an opinion of counsel for the Holder that such
securities may be sold pursuant to an exemption from registration under the
Securities Act or (ii) a registration statement relating to such securities has
been filed by the Company and declared effective by the Commission.

                  (b) Each certificate for Warrant Shares issuable hereunder
shall bear a legend as follows unless such securities have been sold pursuant to
an effective registration statement under the Securities Act:

                           "These securities have not been registered under the
                  Securities Act of 1933, as amended (the "Securities Act"), or
                  the securities laws of any state, and are being offered and
                  sold pursuant to an exemption from the registration
                  requirements of the Securities Act and such laws. These
                  securities may not be sold or transferred except pursuant to
                  an effective registration statement under the Securities Act
                  or pursuant to an available exemption from the registration
                  requirements of the Securities Act or such other laws."

                  (c) Except as otherwise provided in this Section 9, the
Warrant shall be stamped or otherwise imprinted with a legend in substantially
the following form:

                  "THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT
                  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
                  AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES
                  AND REGULATIONS THEREUNDER OR THE PROVISIONS OF THIS WARRANT."

         9.2 NOTICE OF PROPOSED TRANSFERS. Prior to any Transfer or attempted
Transfer of any Warrants or any shares of Restricted Common Stock, the Holder
shall give ten days, prior written notice (a "TRANSFER NOTICE") to the Company
and its counsel of Holder's intention to effect such Transfer, describing the
manner and circumstances of the proposed Transfer, and

                                      -11-
<PAGE>   12

obtain from counsel to Holder who shall be reasonably satisfactory to the
Company, an opinion that the proposed Transfer of such Warrants or such
Restricted Common Stock may be effected without registration under the
Securities Act. After receipt of the Transfer Notice and opinion, the Company
shall, within five (5) business days thereof, notify the Holder as to whether
such opinion is reasonably satisfactory and, if so, such holder shall thereupon
be entitled to Transfer such Warrants or such Restricted Common Stock, in
accordance with the terms of the Transfer Notice. Each certificate, if any,
evidencing such shares of Restricted Common Stock issued upon such Transfer
shall bear the restrictive legend set forth in Section 9.1(b), and the Warrant
issued upon such Transfer shall bear the restrictive legend set forth in Section
9.1(c), unless in the opinion of such counsel such legend is not required in
order to ensure compliance with the Securities Act. The Holder shall not be
entitled to Transfer such Warrants or such Restricted Common Stock until receipt
of notice from the Company under this Section 9.2 that such opinion is
reasonably satisfactory.

         9.3 REQUIRED REGISTRATION. Pursuant to the terms and conditions set
forth in the Registration Rights Agreement, the Company shall prepare and file
with the Commission not later than the sixtieth (60th) day after the Funding
Date, a Registration Statement relating to the offer and sale of the Common
Stock issuable upon exercise of the Warrants and shall use its best efforts to
cause the Commission to declare such Registration Statement effective under the
Securities Act as promptly as practicable but no later than one hundred and
eighty (180) days after the Funding Date.

         9.4 TERMINATION OF RESTRICTIONS. Notwithstanding the foregoing
provisions of Section 9, the restrictions imposed by this Section upon the
transferability of the Warrants, the Warrant Shares and the Restricted Common
Stock (or Common Stock issuable upon the exercise of the Warrants) and the
legend requirements of Section 9.1 shall terminate as to any particular Warrant
or share of Warrant Shares or Restricted Common Stock (or Common Stock issuable
upon the exercise of the warrants) (i) when and so long as such security shall
have been effectively registered under the Securities Act and disposed of
pursuant thereto or (ii) when the Company shall have received an opinion of
counsel reasonably satisfactory to it and its counsel that such shares may be
transferred without registration thereof under the Securities Act. Whenever the
restrictions imposed by Section 9 shall terminate as to this Warrant, as
hereinabove provided, the Holder hereof shall be entitled to receive from the
Company upon written request of the Holder, at the expense of the Company, a new
Warrant bearing the following legend in place of the restrictive legend set
forth hereon:

               "THE RESTRICTIONS ON TRANSFERABILITY OF THE WITHIN WARRANT
               CONTAINED IN SECTION 9 HEREOF TERMINATED ON _________________,
               _____, AND ARE OF NO FURTHER FORCE AND EFFECT."

All Warrants issued upon registration of transfer, division or combination of,
or in substitution for, any Warrant or Warrants entitled to bear such legend
shall have a similar legend endorsed thereon. Whenever the restrictions imposed
by this Section shall terminate as to any share of Restricted Common Stock, as
hereinabove provided, the holder thereof shall be entitled to receive from the
Company, at the Company's expense, a new certificate representing such Common
Stock not bearing the restrictive legend set forth in Section 9.1(b).

                                      -12-
<PAGE>   13

         9.5 LISTING ON SECURITIES EXCHANGE. If the Company shall list any
shares of Common Stock on any securities exchange, it will, at its expense, list
thereon, maintain and, when necessary, increase such listing of, all shares of
Common Stock issued or, to the extent permissible under the applicable
securities exchange rules, issuable upon the exercise of this Warrant so long as
any shares of Common Stock shall be so listed during any such Exercise Period.

10.      SUPPLYING INFORMATION
         ---------------------

         The Company shall cooperate with Holder in supplying such information
as may be reasonably necessary for Holder to complete and file any information
reporting forms presently or hereafter required by the Commission as a condition
to the availability of an exemption from the Securities Act for the sale of any
Warrant or Restricted Common Stock.

11.      LOSS OR MUTILATION
         ------------------

         Upon receipt by the Company from Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of the Holder shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
the Company will execute and deliver in lieu hereof a new Warrant of like tenor
to Holder; PROVIDED, in the case of mutilation, no indemnity shall be required
if this Warrant in identifiable form is surrendered to the Company for
cancellation.

12.      OFFICE OF THE COMPANY
         ---------------------

         As long as any of the Warrants remain outstanding, the Company shall
maintain an office or agency (which may be the principal executive offices of
the Company) where the Warrants may be presented for exercise, registration of
transfer, division or combination as provided in this Warrant.

13.      LIMITATION OF LIABILITY
         -----------------------

         No provision hereof, in the absence of affirmative action by Holder to
purchase shares of Common Stock, and no enumeration herein of the rights or
privileges of Holder hereof, shall give rise to any liability of Holder for the
purchase price of any Common Stock or as a stockholder of the Company, whether
such liability is asserted by the Company or by creditors of the Company.

                                      -13-
<PAGE>   14

14.      MISCELLANEOUS
         -------------

         14.1 NONWAIVER AND EXPENSES. No course of dealing or any delay or
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers or remedies.
If the Company fails to make, when due, any payments provided for hereunder, or
fails to comply with any other provision of this Warrant, the Company shall pay
to Holder such amounts as shall be sufficient to cover any costs and expenses
including, but not limited to, reasonable attorneys' fees, including those of
appellate proceedings, incurred by Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

         14.2 NOTICE GENERALLY. Except as may be otherwise provided herein, any
notice or other communication or delivery required or permitted hereunder shall
be in writing and shall be sent by facsimile with a copy delivered personally or
sent by a nationally recognized overnight courier service, and shall be deemed
given when so delivered personally or by overnight courier service, as follows:

                  (1)      if to the Company, to:

                           IMMUNE RESPONSE, INC.
                           7315 E. Peakview Avenue
                           Englewood, Colorado 80111
                           Attention:    Joseph W. Hovorka
                                         President
                           Telephone:    (303) 796-8940
                           Facsimile:    (303) 796-9762

                           With a copy to:

                           PORTER WRIGHT MORRIS & ARTHUR LLP
                           41 South High Street
                           Columbus, Ohio  43215
                           Attention:    William J. Kelly, Esq.
                           Telephone:    (614) 227-2136
                           Facsimile:    (614) 227-4498

                  (2)      if to the Holder, to

                           with a copy to:

                                      -14-
<PAGE>   15

The Company or the Holder may change the foregoing address by notice given
pursuant to this Section 14.2.

         14.3 INDEMNIFICATION. The Company agrees to indemnify and hold harmless
Holder from and against any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, costs, attorneys' fees, expenses
and disbursements of any kind which may be imposed upon, incurred by or asserted
against Holder in any manner relating to or arising out of any failure by the
Company to perform or observe in any material respect any of its covenants,
agreements, undertakings or obligations set forth in this Warrant; PROVIDED,
HOWEVER, that the Company will not be liable hereunder to the extent that any
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, attorneys' fees, expenses or disbursements are found in a final
non-appealable judgment by a court to have resulted from Holder's gross
negligence, bad faith or willful misconduct in its capacity as a stockholder or
warrantholder of the Company.

         14.4 REMEDIES. Holder in addition to being entitled to exercise all
rights granted by law, including recovery of damages, will be entitled to
specific performance of its rights under Section 9 of this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of Section 9 of this
Warrant and hereby agrees to waive the defense in any action for specific
performance that a remedy at law would be adequate.

         14.5 SUCCESSORS AND ASSIGNS. Subject to the provisions of Sections 3.1
and 9, this Warrant and the rights evidenced hereby shall inure to the benefit
of and be binding upon the successors of the Company and the successors and
assigns of Holder. The provisions of this Warrant are intended to be for the
benefit of all Holders from time to time of this Warrant and, with respect to
Section 9 hereof, holders of Warrant Shares, and shall be enforceable by any
such Holder or holder of Warrant Shares.

         14.6 AMENDMENT. This Warrant and all other Warrants may be modified or
amended or the provisions hereof waived with the written consent of the Company
and the Holder.

                                      -15-
<PAGE>   16

         14.7 SEVERABILITY. Wherever possible, each provision of this Warrant
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Warrant.

         14.8 HEADINGS. The headings used in this Warrant are for the
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

         14.9 GOVERNING LAW. This Warrant shall be governed by the laws of the
State of New York, without regard to the provisions thereof relating to conflict
of laws.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>   17

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and
its corporate seal to be impressed hereon and attested by its Secretary or an
Assistant Secretary.

Dated:   February ____, 2000

                                                     THE COMPANY:
                                                     -----------

                                                     IMMUNE RESPONSE, INC.

                                                     By:________________________
                                                          Joseph W. Hovorka
                                                          President

Attest:

By:_____________________________
     Name:
     Title:

[SEAL]

                                      -17-
<PAGE>   18

                                    EXHIBIT A

                                SUBSCRIPTION FORM

                 [To be executed only upon exercise of Warrant]

                  The undersigned registered owner of this Warrant irrevocably
exercises this warrant for the purchase of ______ Shares of Common Stock of
Immune Response, Inc. and herewith makes payment therefor, all at the price and
on the terms and conditions specified in this Warrant and requests that
certificates for the shares of Common Stock hereby purchased (and any securities
or other property issuable upon such exercise) be issued in the name of and
delivered to ______ whose address is ______ and, if such shares of Common Stock
shall not include all of the shares of Common Stock issuable as provided in this
Warrant, that a new Warrant of like tenor and date for the balance of the shares
of Common Stock issuable hereunder be delivered to the undersigned.

                                                 ______________________________
                                                 (Name of Registered owner)

                                                 ______________________________
                                                 (Signature of Registered Owner)

                                                 ______________________________
                                                 (Street Address)

                                                 ______________________________
                                                 (city)    (State)  (Zip Code)

NOTICE:           The signature on this subscription must correspond with the
                  name as written upon the face of the within Warrant in every
                  particular, without alteration or enlargement or any change
                  whatsoever.

                                      -18-
<PAGE>   19

                                    EXHIBIT B

                                 ASSIGNMENT FORM

                  FOR VALUE RECEIVED the undersigned registered owner of this
Warrant hereby sells, assigns and transfers unto the Assignee named below all of
the rights of the undersigned under this Warrant, with respect to the number of
shares of Common Stock set forth below:

NAME AND ADDRESS OF ASSIGNEE                               NO. OF SHARES of
                                                           COMMON STOCK

and does hereby irrevocably constitute and appoint __________________
attorney-in-fact to register such transfer on the books of __________________
maintained for the purpose, with full power of substitution in the premises.

Dated:                                          Print Name:
         ---------------------------                       ---------------------

                                                Signature:
                                                           ---------------------

                                                Witness:
                                                           ---------------------

NOTICE:           The signature on this assignment must correspond with the name
                  as written upon the face of the within Warrant in every
                  particular, without alteration or enlargement or any change
                  whatsoever.<PAGE>   1
                                                                    EXHIBIT 10.1

                                LICENSE AGREEMENT

This Agreement is made on April 20, 2000 ("Effective Date"), between Delphi
Automotive Systems LLC ("Delphi"), with offices at 408 Dana Street, Warren, Ohio
44486, and DuraSwitch Industries, Inc., ("DuraSwitch"), having a principal place
of business at 234 South Extension, Section 103, Mesa, Arizona 85210.

                                   BACKGROUND

         A.       DuraSwitch represents that it has developed unique switch
                  technology.

         B.       DuraSwitch represents that it has developed and possesses
                  valuable information pertaining to magnetically coupled
                  armature switch technology.

         C.       DuraSwitch represents that it has applied for patent coverage
                  which relates to the magnetically coupled armature switch
                  technology and owns patent applications and patents which are
                  listed in Schedule 1 and corresponding patent applications and
                  patents in other countries.

         D.       Delphi wishes to obtain from DuraSwitch, and DuraSwitch is
                  willing to provide to Delphi, a license in accordance with and
                  subject to the terms and conditions contained in this
                  Agreement.

         E.       By way of separate agreement, DuraSwitch wishes to grant an
                  option to purchase common stock in DuraSwitch Industries,
                  Inc., and Delphi is willing to agree to such an option.

The parties agree as follows:

                                 1. DEFINITIONS

As used in this Agreement, the following terms shall have the meanings set forth
below:

1.1      "DuraSwitch Patents" shall mean:

         (a)      the patents listed in Schedule 1,

         (b)      any patents granted on the patent applications listed in
                  Schedule 1 and any continuations and divisions of such
                  applications,

         (c)      any patents in other countries corresponding to such patents,
                  and

         (d)      any other patents granted on inventions conceived by
                  DuraSwitch prior to the end of the License Period, or under
                  which DuraSwitch has the right to grant a license to Delphi at
                  any time during the License Period, and which relate to
                  DuraSwitch Technology. However, DuraSwitch has no performance
                  requirements nor efforts required to continue to develop new
                  technology nor share future technology developments beyond
                  DuraSwitch Technology.

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   2
1.2      "DuraSwitch Technology" shall mean all information possessed by
         DuraSwitch, now or at any time during the License Period, needed to
         produce magnetically coupled armature switches.

1.3      "License Period" shall mean the period extending from the Effective
         Date until April 21, 2020 or until this Agreement is terminated under
         clause 11.

1.4      "Licensed Products" shall mean any and all products the manufacture,
         use, sale, offer for sale or import of which, in the absence of this
         Agreement, would infringe or contribute to the infringement of at least
         one claim of DuraSwitch Patents.

1.5      "Exclusive Licensed Field" shall mean the original equipment, service
         parts and aftermarket passenger automobile, light truck and heavy truck
         industries.

1.6      "Non-exclusive Licensed Field" shall mean all fields of industry except
         passenger automobile, light truck, heavy truck, appliance, avionic,
         beverage dispenser, and consumer electronics (except to the extent
         consumer electronics relates to the Exclusive Licensed Field).

1.7      "Pushbutton Armature" shall mean a movable conductive element actuated
         by at least partially separating it from a magnet. By way of example
         and not limitation, such armatures are shown in Figs. 11 and 12 of
         Patent 5,523,730 and in Figs. 1-2 of Patent 5,990,772 and in Fig. 17 of
         Patent 5,666,096 and in products currently sold by DuraSwitch under the
         trademark Pushgate(TM).

1.8      "Translating Armature" shall mean a movable conductive element actuated
         by moving a Magnet Set that is in coupling relation with the conductive
         element, whether the movement is rotary, linear or otherwise. By way of
         example and not limitation, such armatures are shown in Figs. 1-2, 4-5
         and 8-10 of Patent 5,523,730 and in Figs. 13-15 of Patent 5,666,096 and
         in products currently sold by DuraSwitch under the trademarks Rotor(TM)
         and Slider(TM).

1.9      "Directionally Sensitive Armature" shall mean a movable conductive
         element actuated by at least partially separating it from a magnet and
         whose output is dependent upon the location on the element where a
         separating force is applied. By way of example and not limitation, such
         an armature is shown in Figs. 1-2 of U.S. Patent Application Serial No.
         09/324,567 and in products currently sold by DuraSwitch under the
         trademark MagnaMouse(TM).

1.10     "Actuating Control Mechanism" shall mean a device for movably mounting
         one or more Magnet Sets. By way of example and not limitation, an
         Actuating Control Mechanism with one Magnet Set is shown in Fig. 1 of
         Patent 6,023,213 and an Actuating Control Mechanism with two Magnet
         Sets is shown in Fig. 5 of that patent.

                                       2

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   3
1.11     "Magnet Set" shall mean one or more individual magnets grouped together
         in coupling relation with a moveable conductive element.

1.12     "Delphi Affiliates" shall mean any company directly or indirectly
         controlled by Delphi, or under common control with Delphi. A company is
         controlled by ownership of more than fifty percent (50%) of the stock
         entitled to vote for directors of the company or persons performing a
         function similar to that of directors.

                                   2. LICENSE

2.1      DuraSwitch hereby grants to Delphi to the extent of the Exclusive
         Licensed Field an exclusive license with the right to grant sublicenses
         under the DuraSwitch Patents and DuraSwitch Technology during the
         License Period to make, use, sell, offer for sale and import Licensed
         Products throughout the world.

         (a)      Delphi shall have the exclusive right under the DuraSwitch
                  Patents and DuraSwitch Technology to grant sublicenses, to the
                  extent of the Exclusive Licensed Field, *

         (b)      In respect to sublicenses granted by Delphi under this
                  Agreement, Delphi shall pay *

         (c)      Termination of this Agreement shall terminate all sublicenses
                  which may have been granted by Delphi, * Any sublicense
                  granted by Delphi shall contain provisions corresponding to
                  those of this paragraph respecting termination and the
                  conditions of continuance of sublicenses.

                                       3

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   4
         (d)      *

2.2      The exclusive license granted in clause 2.1 of this Agreement is not
         subject to any reserved license in DuraSwitch to make, use, sell, offer
         for sale and import Licensed Products.

2.3      Delphi shall have the sole right to convert the exclusive license
         granted in clause 2.1 into a non-exclusive license in the Exclusive
         License Field under DuraSwitch Patents and DuraSwitch Technology for
         the balance of the License Period to make, use, sell, offer for sale
         and import Licensed Products throughout the world. This right to
         convert shall be effective on July 1, 2007 provided DuraSwitch receives
         notice at least six (6) months before July 1, 2007. For the balance of
         the License Period, Delphi shall pay DuraSwitch *.

2.4      After July 1, 2012 and with twelve (12) months notice, either Delphi or
         DuraSwitch shall have the right to convert the exclusive license
         granted in clause 2.1 into a non-exclusive license in the Exclusive
         License Field under DuraSwitch Patents and DuraSwitch Technology for
         the balance of the License Period to make, use, sell, offer for sale
         and import Licensed Products throughout the world. For the balance of
         the License Period, Delphi shall pay DuraSwitch the *.

2.5      DuraSwitch hereby grants to Delphi to the extent of the Non-exclusive
         Licensed Field a non-exclusive license with no right to grant
         sublicenses, except to Delphi Affiliates, under the DuraSwitch Patents
         and DuraSwitch Technology during the License Period to make, use, sell,
         offer for sale and import Licensed Products throughout the world except
         in Australia and in New Zealand.

                                       4

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   5
2.6      DuraSwitch will execute the attached License Confirmations and any
         other proper documents required to record Delphi's rights under this
         Agreement in the United States Patent and Trademark Office.

2.7      DuraSwitch will promptly inform Delphi of the grant of each patent
         licensed under clause 2.1 and 2.5, and of the filing of each
         application for such a patent, and will promptly furnish copies of such
         patents to Delphi.

2.8      DuraSwitch will promptly disclose, deliver and otherwise make fully
         available to Delphi in the form of duplicates of drawings, designs,
         data, reports, written specifications, instructions and consultations,
         or in such other suitable manner and form as may be convenient to the
         parties, all DuraSwitch Technology listed in Schedule 2 within 15 days
         of the effective date of this Agreement, provided that this clause does
         not apply to any DuraSwitch Technology which has been communicated to
         DuraSwitch on terms which preclude DuraSwitch from disclosing it to
         Delphi.

2.9      DuraSwitch, during the License Period, will continue to promptly
         disclose, deliver and otherwise make fully available to Delphi in the
         form of duplicates of drawings, designs, data, reports, written
         specifications, instructions and consultations, or in such other
         suitable manner and form as may be convenient to the parties, all
         DuraSwitch Technology now possessed or hereafter discovered or
         developed by DuraSwitch or otherwise coming into DuraSwitch's
         possession that is requested by Delphi or that DuraSwitch believes
         would be helpful to Delphi in the manufacture, sale and importation of
         magnetically coupled armature switch technology, provided that this
         clause does not apply to any DuraSwitch Technology which is
         communicated to DuraSwitch on terms which preclude DuraSwitch from
         disclosing it to Delphi. However, DuraSwitch has no performance
         requirements nor efforts required to continue to develop new technology
         nor share future technology developments beyond DuraSwitch Technology.

                      3. EXCLUSIVE LICENSE FEE / ROYALTIES

3.1      Delphi shall pay to DuraSwitch as an exclusive license fee, within
         thirty (30) days of the Effective Date of this Agreement, four million
         dollars U.S. (U.S. $4,000,000.00) which shall be nonrefundable and not
         creditable against royalties.

                                       5

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   6
3.2      Delphi shall pay to DuraSwitch royalties as stated in clause 3.3
         through 3.6 for the license in clause 2.1 during the License Period,
         but in no event shall royalties for a one (1) year period starting on
         July 1, 2000 be less than the following minimum royalties and more than
         the following maximum royalties during each of the years indicated:

<TABLE>
<CAPTION>
         Year                           Minimum per Year          Maximum per Year
         ----                           ----------------          ----------------
<S>                                     <C>                       <C>
         *                              *                         *
</TABLE>

3.3      For every Pushbutton Armature sold by Delphi, Delphi shall pay to
         DuraSwitch a royalty of *

3.4      For every Translating Armature sold by Delphi, Delphi shall pay to
         DuraSwitch a royalty of *

3.5      For every Directionally Sensitive Armature sold by Delphi, Delphi shall
         pay to DuraSwitch a royalty of *

3.6      Delphi shall pay no royalty to DuraSwitch for any Licensed Products
         sold to DuraSwitch. Royalties for any DuraSwitch Patents conceived by
         DuraSwitch prior to the end of the License Period, or under which
         DuraSwitch has the right to grant a license to Delphi at any time
         during the License Period shall be * DuraSwitch agrees that with
         respect to any DuraSwitch Patent which may later issue covering any
         apparatus made or sold by Delphi under the licenses granted in this
         Agreement and upon which royalties have been paid, Delphi shall not pay
         any additional royalties. However, DuraSwitch has no performance
         requirements nor efforts required to continue to develop new technology
         nor to share future technology developments beyond DuraSwitch
         Technology.

                                       6

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   7
3.7      Royalties in clauses 3.3-3.6 for the License Period starting from July
         1, 2012 shall be *

3.8      Delphi shall pay to DuraSwitch royalties, for the license granted in
         clause 2.5, to be *

3.9      Within thirty (30) days after the end of each month starting on July 1,
         2000, Delphi shall furnish DuraSwitch with written statements showing
         Delphi's sales of Licensed Products during the preceding month, any
         deductions taken, and the computation of royalties, and shall pay the
         royalties due under this clause 3. A similar statement shall be
         rendered and payment made within thirty (30) days after and as of the
         date of termination of this Agreement covering the period from the end
         of that covered by the preceding statement to the date of termination.
         Delphi shall keep for two (2) years after the date of submission of
         each statement, true and accurate records, files and books of account
         containing all the data reasonably required for the full computation
         and verification of Delphi's sales of Licensed Product, royalties and
         deductions taken. Delphi agrees to permit DuraSwitch to examine, these
         records to the extent necessary to verify the reports. The examination
         by DuraSwitch shall be conducted by an auditor appointed by DuraSwitch
         and paid for by DuraSwitch.

                                4. ASSIGNABILITY

4.1      The licenses granted in this agreement shall be binding upon any
         successor of DuraSwitch in ownership or control of the DuraSwitch
         Patents and DuraSwitch Technology.

4.2      The license is personal to Delphi, and Delphi may not assign the
         license to any person unless DuraSwitch has given approval to the
         assignment, which DuraSwitch may give or refuse at its absolute
         discretion, provided that Delphi may assign the license, without
         DuraSwitch approval to (i) the successor to that portion of its
         business to which the license relates or (ii) any company directly or
         indirectly controlled by Delphi, or under common control with Delphi. A
         company is controlled by ownership of more than fifty percent (50%) of
         the stock entitled to vote for directors of the company or persons
         performing a function similar to that of directors.

                                   5. MARKING

5.1      Delphi shall place in a conspicuous location on any Licensed Product a
         distinguishing mark agreeable to both parties and the number or numbers
         of the DuraSwitch Patents applicable thereto.

5.2      The marking of Licensed Product in clause 5.1 shall not be required if
         the product performance is compromised thereby, the marking can not
         reasonably be placed on any Licensed Product due to the product size,
         or in all instances where Delphi's customers request in writing that
         any Licensed Products do not include any markings.

                                       7

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   8
5.3      Delphi shall notify DuraSwitch in writing when any Licensed Products
         are not marked pursuant to clause 5.2.

                                  6. PUBLICITY

6.1      Delphi shall use the DURASWITCH trademark in all publications relating
         to the Licensed Products. Usage of any DuraSwitch trademarks and trade
         names shall be in accordance with DuraSwitch's then current published
         specifications relating to the use thereof. DuraSwitch reserves the
         right to periodically review and monitor Delphi's use of DuraSwitch's
         trademark and trade names in order to preserve DuraSwitch's rights,
         good will and value in its trademarks and trade names.

6.2      Except as required in clauses 5.1 and 6.1, Delphi is not required to
         use any DuraSwitch trademarks or trade names.

6.3      Within three (3) days of the Effective Date of this Agreement, Delphi
         and DuraSwitch shall issue a press release as shown in Schedule 4.

6.4      DuraSwitch shall not use any Delphi trademarks, trade names or service
         marks without the prior written consent of Delphi.

                               7. CONFIDENTIALITY

7.1      All of the terms of this Agreement except clause 3.1 and a combined
         total of the minimum royalties in clause 3.2 for the first seven years
         equaling twelve million dollars (U.S. $12,000,000), but not the
         existence of the Agreement, are confidential, and neither party shall
         disclose such terms and conditions to anyone else without first
         obtaining the prior written consent from the other party, provided that
         either party may disclose the terms and conditions of this Agreement in
         response to the legal requirement of a governmental agency or a court
         of competent jurisdiction if such disclosure is first submitted to the
         other party.

7.2      Delphi will protect materials received from DuraSwitch under this
         Agreement and containing DuraSwitch Technology against disclosure to
         others with the same degree of care Delphi protects its own materials
         of a similar nature and will endeavor to instruct Delphi employees most
         likely to have access to such materials that such materials are to be
         so protected. DuraSwitch acknowledges that Delphi often discloses its
         own materials for its own commercial purposes to customers, vendors and
         consultants, and accordingly will not assert any claim with respect to
         disclosure or use of any materials, or any DuraSwitch Technology,
         disclosed to Delphi. The foregoing expresses Delphi's entire obligation
         with respect to DuraSwitch Technology, and supersedes any obligation
         that might otherwise be implied by or inferred from any legends placed
         on materials containing DuraSwitch Technology.

                                       8

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   9
7.3      DuraSwitch will protect materials received from Delphi under this
         Agreement against disclosure to others with the same degree of care
         DuraSwitch protects its own materials of a similar nature and will
         endeavor to instruct DuraSwitch employees most likely to have access to
         such materials that such materials are to be so protected. Delphi
         acknowledges that DuraSwitch often discloses its own materials for its
         own commercial purposes to customers, vendors and consultants, and
         accordingly will not assert any claim with respect to disclosure or use
         of any materials disclosed to Delphi. The foregoing expresses
         DuraSwitch's entire obligation with respect to such materials, and
         supersedes any obligation that might otherwise be implied by or
         inferred from any legends placed on materials.

                        8. INFRINGEMENT BY THIRD PARTIES

8.1      Each party shall notify the other party in writing of any suspected
         infringement(s) of the DuraSwitch Patents and shall inform the other
         party of any evidence of such infringement(s).

8.2      Delphi shall have the first right to institute suit for infringement(s)
         in the Exclusive License Field. DuraSwitch agrees to join as a party
         plaintiff in any such lawsuit initiated by Delphi, if requested by
         Delphi or required by law, with all costs, attorney fees, and expenses
         to be paid by Delphi. However, if Delphi does not institute suit for
         infringement(s) within ninety (90) days of receipt of written notice
         from DuraSwitch of DuraSwitch's desire to bring suit for infringement
         in its own name and on its own behalf, then DuraSwitch may at its own
         expense, bring suit or take any other appropriate action.

8.3      *

8.4      DuraSwitch shall have the sole right to institute suit for
         infringement(s) in the Non-exclusive License Field.

8.5      Neither party may settle with an infringer without the prior approval
         of the other party if such settlement would affect any rights of the
         other party under the DuraSwitch Patents and DuraSwitch Technology.

                                       9

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   10
                                   9. WARRANTY

         DuraSwitch warrants it has the right to convey the licenses granted by
         this Agreement. *

9.2      DuraSwitch warrants that, as of the Effective Date of this Agreement,
         it has received no claim from a third party charging infringement of a
         patent by any activity of DuraSwitch.

9.3      *

9.4      DuraSwitch agrees to defend at its expense and hold harmless Delphi
         from all loss or damage by reason of any and all actions or proceedings
         charging infringement, whether rightfully or wrongfully brought, of any
         patent by reason of manufacture, use, sale, offer for sale, or import
         of any Licensed Products by Delphi under this Agreement. Delphi agrees
         to notify DuraSwitch in writing of all such actions or proceedings and,
         at the expense of DuraSwitch, to assist DuraSwitch in the defense of
         the action or proceeding. If the manufacture, use, offer for sale, sale
         or import of such Licensed Products is enjoined as a result of such
         action or proceeding, DuraSwitch will indemnify Delphi for any and all
         losses or damages sustained by reason of obeying such injunction.

                                       10

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   11
9.5      If a claim or claims of any patent licensed hereunder shall be held
         invalid, unenforceable, or cancelled by a court or administrative
         agency from whose decision no appeal is taken or no appeal or other
         proceeding for review can be taken (hereinafter a "final judgment"),
         then such claim or claims shall, subsequent to the date of the final
         judgment, be treated as invalid, unenforceable, or cancelled and no
         royalties shall be due under clause 3 of this Agreement for sales
         thereafter of Licensed Products covered solely by such claims.

9.7      If a claim or claims of any patent licensed hereunder shall be held
         noninfringed by a third party's switch related products in a final
         judgment of a court or administrative agency, then subsequent to the
         date of the final judgment, Delphi shall have no obligation to pay
         royalties hereunder to DuraSwitch on switch related products
         manufactured, used, sold, offered for sale or imported by Delphi which
         do not infringe such patent.

9.8      DuraSwitch warrants that, as of the Effective Date of this Agreement,
         it has received no claim from a third party for ownership or
         misappropriation of any DuraSwitch Patent and/or DuraSwitch Technology.

9.9      DuraSwitch does not warrant or represent that any DuraSwitch Technology
         is or will be patentable or that any DuraSwitch Patent is or will be
         valid.

9.10     DuraSwitch warrants that, as of the Effective Date of this Agreement,
         to the extent of the Exclusive Licensed Field, it and its licensees
         have not granted any rights under DuraSwitch Technology and/or
         DuraSwitch Patents. In addition, DuraSwitch warrants that, as of the
         Effective Date of this Agreement, DuraSwitch is under no obligation
         with any third party prohibiting the disclosure of DuraSwitch
         Technology to Delphi.

9.11     DuraSwitch agrees that with respect to any patent which may later
         issue, it will not assert against Delphi, or its vendees, any claims
         for infringement based on the manufacture, use, sale, offer for sale or
         import of any apparatus made or sold by Delphi under the license
         granted in this Agreement and upon which royalty has been paid in
         accordance with the provisions of clause 3.

9.12     DuraSwitch warrants that, during the License Period all DuraSwitch
         Patents will not be allowed to lapse.

                                  10. LIABILITY

10.1     Delphi shall indemnify, defend and hold DuraSwitch harmless against all
         claims and expenses, including legal expenses and reasonable attorney's
         fees, arising out of the death of or injury to any person or persons or
         out of damage to property resulting from Delphi's production, assembly,
         sale or use of the Licensed Products.

                                       11

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   12
10.2     Delphi's indemnification under clause 10.1 shall not apply to any
         claims or expenses due to: (i) the negligence of DuraSwitch; or (ii)
         the intentional wrongdoing or intentional misconduct of DuraSwitch.

10.3     Delphi's indemnification under clause 10.1 shall not apply to any
         claims or expenses due to: (i) the negligence of DuraSwitch; or (ii)
         the intentional wrongdoing or intentional misconduct of DuraSwitch.

                                    11. TERM

11.1     This Agreement shall continue in force for the License Period unless
         terminated by either party under clause 11.2.

11.2     If either party shall at any time default in the payment of any monies
         due in accordance with this Agreement or in fulfilling any of the other
         obligations or conditions hereof, prior to terminating this Agreement,
         the other party shall give notice of such default specifying the
         reasons thereof. If such default is not cured by the noticed party
         within ninety (90) days of such notice, the other party shall then have
         the right in its own discretion to terminate this Agreement by giving
         written notice of termination. This Agreement shall terminate on the
         30th day after each notice of termination is given. The noticed party
         shall have the right to cure any such default up to, but not after, the
         giving of such notice of termination.

                          12. LICENSED PRODUCT QUALITY

12.1     The DuraSwitch Quality Standards, attached as Schedule 3, shall be used
         as a minimum acceptable level of quality for all Licensed Products.

12.2     DuraSwitch shall be permitted to inspect Licensed Products in order to
         ensure minimum compliance with the DuraSwitch Quality Standards. Such
         inspection will be permitted by Delphi not more than four times per
         year during reasonable working hours and only after a written request
         has been received by Delphi one (1) week in advance of such inspection.

                                       12

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   13
                                   13. NOTICE

13.1     All notices given under this Agreement shall be in writing and shall be
         deemed to have been properly given when delivered personally or sent by
         prepaid registered or certified mail, or electronic transmission, and
         all payments and statements shall be sent by first class mail, postage
         prepaid, to the following addresses:

<TABLE>
<CAPTION>
<S>                                                     <C>
         If given to Delphi:                            If given to DuraSwitch:

         President                                      President
         Delphi Packard Electric Systems                DuraSwitch Industries, Inc.
         408 Dana Street                                234 South Extension, Section 103
         P.O. Box 431                                   Mesa, Arizona, 85210
         Warren, Ohio 44486

         with courtesy copies to:                       with courtesy copies to:

         Attention: Legal Staff - M/C 480-414-420       ____________________________
         P.O. Box 5052                                  ____________________________
         Troy, Michigan 48007-5052                      ____________________________
         Fax: (248) 267-5559                            ____________________________
</TABLE>

The date of service shall be deemed to be the date on which such notice,
payment, or statement was personally delivered, posted, or sent by telex or
electronic transmission. Either party may give written notice of a change of
address and, after notice of such change has been received, any notice, payment,
or statement thereafter shall be given to such party as above provided at such
changed address.

                                  14. COVENANT

14.1     DuraSwitch, for the License Period, agrees to refrain from disclosing
         any DuraSwitch Technology to any company, partnership or other entity
         which is engaged in the manufacture, use or sale of products in the
         Exclusive Licensed Field.

                                15. CONSTRUCTION

15.1     This Agreement will be governed by and construed in accordance with the
         laws of the state of Illinois, without regard to its law of conflicts.
         The headings of Articles and Sections in this Agreement are intended
         solely for convenience of reference and shall not be considered in
         construing this Agreement.

                                       13

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   14
                             16. EXTRANEOUS WRITINGS

16.1     This Agreement constitutes the entire understanding between the parties
         with respect to the subject matter hereof; all prior agreements,
         drafts, representations, statements, negotiations, and undertakings are
         superseded hereby. No amendment to this Agreement shall be effective
         unless it is in writing and signed by duly authorized representatives
         of both parties.

                                 17. ARBITRATION

17.1     Both parties shall use their best efforts to resolve by mutual
         agreement any disputes, controversies, or differences which may arise
         from, under, out of, or in connection with this Agreement. If such
         disputes, controversies, or differences cannot be settled between the
         parties within sixty (60) days of the first written notice relative
         thereto, it shall be resolved by arbitration before three arbitrators
         acting under the Expedited Arbitration Rules in accordance with the
         most recent Rules of the American Arbitration Association. Such
         arbitration shall be held in Michigan and the award rendered in the
         arbitration shall be final and binding upon both parties.

IN WITNESS THEREOF, the parties have made this Agreement the day and year
written above.

Delphi Automotive Systems LLC            DuraSwitch Industries, Inc.

By:_______________________________       By:___________________________________

Name:_____________________________       Name:_________________________________

Title:____________________________       Title:________________________________

Date:_____________________________       Date:_________________________________

                                       14

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   15
                              LICENSE CONFIRMATION

This document confirms that Duraswitch Industries Inc., incorporated under the
laws of Nevada and having a principal place of business at 234 South Extension,
Section 103, Mesa, Arizona, ("Duraswitch"), has granted DELPHI AUTOMOTIVE
SYSTEMS LLC, incorporated under the laws of Delaware and having a place of
business at Warren, Ohio ("DELPHI"), to the extent of the original equipment,
service parts and aftermarket passenger automobile, light truck and heavy truck
industries, an exclusive license with the right to grant sublicenses to make,
use, sell, offer for sale and import throughout the world magnetically coupled
armature switches covered by one or more of the patents listed in the attached
Schedule 1,any patents granted on the patent applications listed in the attached
Schedule 1 and any continuations and divisions of such applications, any patents
in other countries corresponding to such patents, any other patents granted on
certain inventions conceived by Duraswitch, and certain other patents under
which Duraswitch has the right to grant a license to Delphi, upon and subject to
the terms of an Agreement between Duraswitch and Delphi made the 20th day of
April, 2000.

                                       DURASWITCH INDUSTRIES, INC.

                                       BY _____________________________________

                                       TITLE __________________________________

                                       DATE ___________________________________

THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS _____ DAY OF
_____________, 2000 BY ___________________________________ OF DURASWITCH
INDUSTRIES, INC., A NEVADA COMPANY ON BEHALF OF THE COMPANY.

(SEAL)                                 ________________________________________
                                       NOTARY PUBLIC

                                       15

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   16
                              LICENSE CONFIRMATION

This document confirms that Duraswitch Industries Inc., incorporated under the
laws of Nevada and having a principal place of business at 234 South Extension,
Section 103, Mesa, Arizona, ("Duraswitch"), has granted DELPHI AUTOMOTIVE
SYSTEMS LLC, incorporated under the laws of Delaware and having a place of
business at Warren, Ohio ("DELPHI"), to the extent of all fields of industry
except passenger automobile, light and heavy truck original equipment, service
parts and aftermarket industries, appliance, avionic, beverage dispenser,
consumer electronics (except to the extent consumer electronics relates to the
Exclusive Licensed Field) a non-exclusive license with no right to grant
sublicenses to make, use, sell, offer for sale and import throughout the world
except Australia and New Zealand magnetically coupled armature switches covered
by one or more of the patents listed in the attached Schedule 1,any patents
granted on the patent applications listed in the attached Schedule 1 and any
continuations and divisions of such applications, any patents in other countries
corresponding to such patents, any other patents granted on certain inventions
conceived by Duraswitch, and certain other patents under which Duraswitch has
the right to grant a license to Delphi, upon and subject to the terms of an
Agreement between Duraswitch and Delphi made the 20th day of April, 2000.

                                       DURASWITCH INDUSTRIES, INC.

                                       BY _____________________________________

                                       TITLE __________________________________

                                       DATE ___________________________________

THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS _____ DAY OF
_____________, 2000 BY ___________________________________ OF DURASWITCH
INDUSTRIES, INC., A NEVADA COMPANY ON BEHALF OF THE COMPANY.

(SEAL)                                 ________________________________________
                                       NOTARY PUBLIC

                                       16

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   17
                                   SCHEDULE 1

                  Applications

         *

                  Letters Patent

<TABLE>
<CAPTION>
<S>               <C>                       <C>
                  U.S.                      Patent No.
                                            5,523,730
                                            5,666,096
                                            5,867,082
                                            5,990,772
                                            6,023,213
</TABLE>

                                       17

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   18
                                   SCHEDULE 2

The following list includes DuraSwitch Technology to be transferred to Delphi
within fifteen (15) days of the Effective Date pursuant to clause 2.6 of this
Agreement.

1.       All Manufacturing Specifications including, but not limited to, quality
         control plans

2.       All Engineering Design Specifications

3.       All Part Prints

4.       All formulations required to manufacture the Licensed Products

5.       All Quality data for the past two months

6.       All production test data for the past two months

7.       All tooling, jig and fixture blueprints, design manuals, and training
         manuals

                                       18

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   19
[DURASWITCH LOGO]

                                   SCHEDULE 4

              PUSHGATE(TM) PRODUCT SPECIFICATION - NUMBER DPS-0600

-        ASTM-F1597 - Determining The Actuation Force and Contact Force of a
         Membrane Switch

-        ASTM-F1661 - Determining Contact Bounce Time of Membrane Switch

-        ASTM-F1662 - Verifying The Specific Dielectric Withstand Voltage of A
         Membrane Switch

-        ASTM-F1663 - Determining The Capacitance of A Membrane Switch

-        ASTM-F1681 - Determining the Current Carrying Capacity of A Conductor
         as Part of A Membrane Switch

-        ASTM-F1683 - Creasing or Bending A Membrane Switch Tail Assembly

-        ASTM-F1689 - Determining The Insulation Resistance of A Membrane Switch

-        ASTM-F1762 - Effects of Variation of Atmospheric Pressure on Membrane
         Switches

-        ASTM-F1812 - Membrane Switch ESD Shielding Test Method

-        ASTM-F1842 - Determining Ink or Coating Adhesion on Plastic Substrates
         for Membrane Switches

-        ASTM-F1895 - Submersion of Membrane Switch

-        ASTM-F1896 - Determining the Circuit Resistance of A Membrane Switch

-        Mil-Std 202 - Test Methods for Electronic & Electrical Component Parts

-        Mil-Std-810E - Environmental Test Methods and Engineering Guidelines

-        UDI-R-20459 - Quality Assurance Environmental Test Plan

Note:    The aforementioned ASTM test specifications were written specifically
         for membrane switch technology. DuraSwitch(R) PushGate(TM) technology,
         although similar in many aspects does not have an applicable industry
         standard at this time that can be referenced. In all cases, the
         PushGate(TM) technology meets and in critical areas exceeds the
         Membrane specifications. In those cases where PushGate(TM) technology
         exceeds those design and test standards, our Document will note such
         differences.

(C) DuraSwitch Industries, Inc. 2000                                Page 3 of 56

                                       19

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confidential treatment and has been filed separately with the Commission.
<PAGE>   20
[DURASWITCH LOGO]

                                   SCHEDULE 4

              PUSHGATE(TM) PRODUCT SPECIFICATION - NUMBER DPS-0600

-        FORMAT FOR REPORTING

-        General description of test to be performed and results expected

         -        Customer

         -        Product type

         -        Serial number

         -        Model number

         -        Drawing number

         -        Brief description of features, functions, etc.

-        Hardware identification (switch unit to component level assembly)

-        Functional description of the affected parts of the switch unit

-        Test Measurements

         -        Description of test and particular referenced documents

         -        Test results (charting, graphing, test datum)

-        Root Cause of failure

-        Corrective actions

-        ATTACHMENTS

-        Incremental test log (showing time of test starts, interruptions,
         failures and restarts)

-        Failure Mode and Effect Analysis (physics of failures)

-        REFERENCE DOCUMENTS FOR TESTING

-        ASTM Membrane Switch

-        ASTM-1596 - Exposure of Membrane Switches to Temperature and Humidity

-        ASTM-F1570 - Determining the Tactile Ratio of a Membrane Switch

-        ASTM-F1578 - Contact Closure Cycling of a Membrane Switch

-        ASTM-F1595 - Viewing Conditions for visual Inspection Standards of
         Membrane Switches

                                       20

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   21
                                   SCHEDULE 4

                                       21

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   22
[DURASWITCH LOGO]

                                   SCHEDULE 4

              PUSHGATE(TM) PRODUCT SPECIFICATION - NUMBER DPS-0600

9. QUALITY CONSIDERATIONS

PURPOSE:

The purpose of this procedure will be to outline the test requirements to
validate, qualify, and determine product performance, capability, and worthiness
to specification on a random sample and test basis. To ensure that all product
on an ongoing basis complies the company's basic assembly, environmental,
mechanical and electrical specifications.

-        SCOPE:

The following test(s) are to determine whether DuraSwitch(R) products meet
specified performance parameters, i.e.; Electrical, Mechanical, Environmental
and Human Factors Engineering. Environmental requirements will include:
temperature, humidity, shock, and vibration areas that could normally be
experienced in and through the use when exposed in our daily surroundings. In
addition, product will be subjected to a total functional test based upon all
aspects of product design as defined within the DuraSwitch(R) performance
specifications as noted at the time of customer acceptance of quote.

This procedure, PERFORMANCE, LIFE CYCLE AND ENVIRONMENTAL PROFILING will output
the necessary data, in narrative and statistical format required, outlining the
environmental and stress conditions to which the product under test will be
subjected to during its various life phases. The data may be form of
calculations, laboratory tests and/or operational measurements. Each profile
will show the number of measurements from which the average value of these
stresses and design achievements are determined as well as their characteristic
variability which will be expressed in terms of standard deviation.

Reporting shall include: test specifications, method used, test parameters,
duration, descriptions of how the test will be performed, test set-up (block
diagram), test equipment to be utilized, location of voltage and current
sensors, resistance measurements, accelerometers, thermocouples, etc., relative
to test items, and data reduction techniques.

The Product Assurance team working under the supervision of Quality Engineering
will perform the test, record test data and anomalies in written format. The
report will include an analysis of the causes of the anomalies and corrective
action taken to prevent recurrence. A test anomaly caused by an equipment
failure (this includes failures caused by external sources) shall be reported in
the same manner.

(C) DuraSwitch Industries, Inc. 2000                               Page 38 of 56

                                       22

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confidential treatment and has been filed separately with the Commission.
<PAGE>   23
                                   SCHEDULE 4

[DELPHI AUTOMOTIVE SYSTEMS LOGO]

                                                                    NEWS RELEASE

DRIVING TOMORROW'S TECHNOLOGY

FOR RELEASE: Tuesday, April 25, 2000             CONTACTS:    Ann Cornell
                                                              330.759.6141
                                                 DuraSwitch:  Heather Beshears
                                                              480.586.3357

DELPHI PARTNERS WITH DURASWITCH(R) TO BRING NEW SWITCH TECHNOLOGY INTO
AUTOMOTIVE MARKET

         WARREN, Ohio -- Delphi Automotive Systems (NYSE:DPH) signed a licensing
agreement today with DuraSwitch Industries Inc. (AMEX:DRA) for exclusive rights
to utilize and manufacture DuraSwitch's revolutionary magnetically coupled
switch technology for the automotive industry, announced David R. Heilman,
president, Delphi Packard Electric Systems and vice president, Delphi.

         Delphi's Packard Electric Division will utilize its knowledge of
switches and switch packaging to adapt the DuraSwitch technology to the
automotive industry, as well as the non-automotive switch markets. Along with
the licensing and manufacturing agreement, Delphi has an option to acquire
slightly under 20 percent of DuraSwitch.

         "This is a significant win for Delphi and for DuraSwitch," said
Heilman. "I'm confident that the marketplace acceptance of this innovative
technology will be great, yielding substantial sales that will benefit both
Delphi and DuraSwitch. Our potential for an equity position in DuraSwitch will
not only cement our relationship, but will allow us to participate in their
value growth."

         Delphi's diversified customer base and solid manufacturing footprint
will help take DuraSwitch global. The automotive switch market is valued at $4
billion, with a 6.8 percent compounded average annual growth rate.

         Heilman said, "This is exactly the switch technology that is needed to
provide the multitude of switching and electronic features that today's
automotive customers demand. We consider DuraSwitch to be a next generation
switch technology, which has a straightforward design that fits perfectly with
our manufacturing capabilities."

                                       23

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   24
                                   SCHEDULE 4

         DuraSwitch utilizes a patented, revolutionary magnetic-based design
that provides previously unheard of levels of reliability and durability, with a
consistent tactile feedback or "click." This specialized technology enables the
switches to be used in applications where either membrane or electro-mechanical
switches are currently used. It easily incorporates into flat panel,
electronically integrated switch packaging, currently required in advanced
electrical/ electronic architectures and in demand by vehicle manufacturers.

         "We are excited to be part of the Delphi Team, combining our switch
technology with their state-of-the-art manufacturing capabilities," said Terry
Dunlap, chief executive officer and chairman, DuraSwitch. "I'm confident that by
working together the opportunities to apply this technology will quickly extend
well beyond the automotive market."

         "We see Delphi as the perfect partner," said Bob Brilon, president and
chief financial officer, DuraSwitch. "Their strong global presence and solid
customer base will help us achieve our vision of leadership in human-machine
interface technology."

         This partnership with DuraSwitch will enable Delphi to maintain and
grow its current switch business. The intent is to begin moving away from some
of the electro-mechanical switches typically used in vehicles and replace them
with DuraSwitch technology, which has fewer parts, Heilman said. By doing so,
switch degradation and failure rates can be minimized leading directly to more
satisfied vehicle buyers.

         "Our exclusive licensing agreement with DuraSwitch will help Delphi
become a leader in automotive switch technology," said Carl Rausch, director of
marketing, planning and business development, Delphi Packard Electric. "We see
this switch technology fitting nicely with Delphi's infotainment systems and
devices, as well as other automotive communication applications. It also lends
itself well to the custom styling, differentiation and higher quality that our
customers are requesting."

         DuraSwitch, incorporated in 1997, and headquartered in Mesa, Ariz.,
designs and licenses an innovative switch technology that is used to operate
products in a variety of commercial and consumer applications. DuraSwitch became
listed on the American Stock Exchange in August 1999. Some key customers include
Disney World, Rain Bird, Johnson Outdoors, Raytheon Marine, U.S. Filter and
Frymaster. DuraSwitch can be found on the Internet at www.duraswitch.com

                                       24

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.
<PAGE>   25
                                   SCHEDULE 4

Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world leader
in transportation and mobile electronics components and systems technology.
Delphi's three business sectors - Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics & Mobile Communication - provide
comprehensive product solutions to complex customer needs. Delphi has
approximately 214,200 employees, and operates 178 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 27 technical
centers in 39 countries. Regional headquarters are located in Paris, Tokyo and
Sao Paulo, Brazil. Delphi can be found on the Internet at www.delphiauto.com.

#        #        #

                                       25

* Indicates where information has been omitted pursuant to a request for
confidential treatment and has been filed separately with the Commission.

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