Document:

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                                                                    EXHIBIT 10.1

                      STOCK AND WARRANT PURCHASE AGREEMENT

InSite Vision Incorporated
965 Atlantic Avenue
Alameda, California 94501
Ladies & Gentlemen:

        The undersigned purchaser (the "Purchaser") hereby confirms its
agreement with you as follows:

        1. This Stock and Warrant Purchase Agreement (the "Purchase Agreement")
is made by and between InSite Vision Incorporated, a Delaware corporation (the
"Company"), and the Purchaser as of the date this Purchase Agreement is accepted
by the Company below (the "Effective Date").

        2. This Purchase Agreement is one of a series of stock and warrant
purchase agreements of the Company relating to the offering (the "Offering") of
securities of the Company. In connection with the Offering, the Company has
authorized the issuance and sale of up to a maximum aggregate amount of four
million (4,000,000) shares of the Company's Common Stock, par value $.01 per
share (the "Common Stock"), and four (4) year warrants (the "Warrants") to
purchase an aggregate of up to 1,400,000 shares of the Company's Common Stock at
an exercise price of $5.64. For every 100 shares of Common Stock purchased by
the Purchaser, the Company will issue to the Purchaser a Warrant to purchase an
aggregate of 35 shares of Common Stock. Each Warrant shall be exercisable
commencing six (6) months after the date of issuance, provided, that, the number
of Warrant Shares (as defined in Annex I hereto) shall be permanently reduced on
a share-for-share basis to the extent that the Purchaser sells Common Stock or
other securities of the Company during such six-month period. The Warrants are
redeemable by the Company at a price of $.01 per Warrant upon notice to record
holders of the Warrants if the weighted average closing price per share of the
Common Stock has been at least $8.35 for ten (10) consecutive trading days
during a period ending within five (5) days of the date of the notice of
redemption all as more fully described in this Purchase Agreement, the Warrant
and accompanying documents. The Warrants are also subject to a mandatory
exchange or termination in the case of certain reorganizations, mergers, or
divestitures.

        3. The Company and the Purchaser agree that the Purchaser will purchase
from the Company, and the Company, conditioned upon acceptance in whole or in
part, will sell to the Purchaser at a purchase price per share of Common Stock
sold (the "Purchase Price") equal to $4.175 and pursuant to the Terms and
Conditions for Purchase of Common Stock and Warrants attached hereto as Annex I
and incorporated herein by reference as if fully set forth herein.

        4. The Company makes no representation that this Purchase Agreement will
be accepted by the Company and is under no obligation to accept this Purchase
Agreement.

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        5. The Purchaser hereby agrees not to engage, directly or indirectly, in
any short sale or third party short sales or hold a "put equivalent position"
with respect to the Common Stock (as defined in Rule 16a-1 of the 1934 Act) of
the Company's Common Stock for a thirty (30) day period prior to and for a one
hundred eighty (180) day period following the Closing Date.

        Please confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that purpose.

                                            PURCHASER

                                            ------------------------------------
                                            Print Name

                                            By:
                                               ---------------------------------

                                            Title:
                                                  ------------------------------

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

ACCEPTED as of May 1, 2000

INSITE VISION INCORPORATED

By:
   ----------------------------------

Title:  CEO and Chairman of the Board

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                                                                         ANNEX I

                TERMS AND CONDITIONS FOR PURCHASE OF COMMON STOCK
                                  AND WARRANTS

        1. Authorization and Sale of the Common Stock and Warrants.

                1.1 Authorization of the Common Stock and Warrants. The Company
has authorized the issuance and sale of up to four million (4,000,000) shares of
the Company's Common Stock, par value $.01 per share (the "Common Stock") and
warrants to purchase up to an aggregate of 1,400,000 shares of the Company's
Common Stock (the "Warrants") in the form attached hereto as Exhibit 1.1.

                1.2 Sale of Common Stock and Warrants. Subject to the terms and
conditions hereof, the Purchaser will purchase the number of shares of Common
Stock and Warrants agreed upon by the Purchaser and accepted by the Company at
the Purchase Price, as set forth in the Common Stock and Warrant Purchase
Agreement by and between the Company and the Purchaser (the "Purchase
Agreement"). The shares of Common Stock sold to Purchaser pursuant to the
Purchase Agreement are hereinafter referred to as the "Initial Shares" and the
shares of Common Stock issuable upon the exercise of the Warrants are
hereinafter referred to as the "Warrant Shares." The Initial Shares, the
Warrants and the Warrant Shares are hereinafter collectively referred to as the
"Securities."

        2. Closings.

                2.1 Closing Date. One or more closings of the purchase and sale
of the Common Stock and Warrants in the Offering hereunder (the "Closing") shall
be held at such place and such times as the Company may select. Each date of a
Closing of the purchase or sale of Common Stock and Warrants in connection with
the Offering is hereinafter referred to as a "Closing Date." As of the Closing
Date for a specific purchase of Common Stock and Warrants, the Company shall
prepare a certificate or certificates registered in the name of the Purchaser
representing the Initial Shares to be purchased by such Purchaser under the
Purchase Agreement, and the Purchaser shall send to the Company a wire transfer
(in accordance with the instructions set forth on Exhibit 2.1(a) hereto) in the
amount of the purchase price of the Common Stock to be purchased by such
Purchaser, payable to the Company's order. Funds received prior to the Closing
Date will not bear interest.

                2.2 Warrant Issuance. For every 100 shares of Common Stock
purchased at a Closing the Company will issue to the Purchaser a Warrant
entitling the holder to purchase thirty-five (35) shares of the Company's Common
Stock at a per share exercise price of $5.64. Each Warrant will be issued as of
the Closing and the Company shall deliver the Warrant to the Purchaser as
promptly as practicable after the Closing Date; provided, however, that the
Purchaser may not exercise the Warrant until six (6) months after the Closing
(the "Warrant Determination Date"). The number of Warrant Shares will be
permanently reduced on a share-for-share basis by any sales of Company
securities (including short sales and sales or purchases of derivative
securities) by the Purchaser from the Closing Date until the Warrant
Determination Date. As a condition to exercising the Warrant, the Purchaser
shall

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provide to the Company an affidavit and other reasonable supporting materials
stating the amount of Company securities sold (including short sales and sales
or purchases of derivative securities) from the Closing Date to the Warrant
Determination Date. The Warrant is redeemable by the Company at a price of $.01
per Warrant upon notice to the record holder of the Warrant if the weighted
average closing price per share of the Common Stock has been at least [200% of
the Purchase Price] for a period of ten (10) consecutive trading days ending
within five (5) days of the date of the notice of redemption. The Warrant is
also subject to a mandatory exchange or termination in the case of certain
reorganizations, mergers, or divestitures.

        3. Representations and Warranties of the Company. The Company represents
and warrants to the Purchaser as of the Closing Date as follows, except as set
forth in the SEC Documents (as defined below):

                3.1 Organization and Standing. Each of the Company and its
subsidiaries has been duly incorporated and is validly existing as a corporation
in good standing under the laws of its jurisdiction of incorporation with full
corporate power and corporate authority to own, lease and operate its properties
and conduct its businesses as described in the SEC Documents (as defined below).
Each of the Company and its subsidiaries is duly qualified to do business as a
foreign corporation and is in good standing in each jurisdiction in which the
ownership or leasing of properties or the conduct of its business as presently
conducted require such qualification, except where the failure to be so
qualified would not have a material adverse effect on the condition (financial
or otherwise), earnings, operations, or business of the Company and its
subsidiaries taken as a whole.

                3.2 Corporate Power; Authorization. The Company has all
requisite legal and corporate power and has taken all requisite corporate action
to execute and deliver the Purchase Agreement, to sell and issue the Securities
and to carry out and perform all of its obligations hereunder. The Purchase
Agreement has been duly authorized, executed and delivered on behalf of the
Company and constitutes the valid and binding agreement of the Company,
enforceable in accordance with its terms, except (1) as limited by applicable
bankruptcy, insolvency, reorganization or similar laws relating to or affecting
the enforcement of creditors' rights generally, (ii) as limited by equitable
principles generally and (iii) rights to indemnification hereunder may be
limited by applicable law.

                3.3 Validity of Securities. The Company has full corporate power
and lawful authority to sell the Securities on the terms and conditions
contemplated herein, and when so sold against payment therefor as provided
herein and in the Warrant, the Initial Shares and, when issued, the Warrants
will be validly authorized and issued, fully paid and nonassessable. The
issuance and delivery of each of the Initial Shares and the Warrants is not
subject to preemptive or any similar rights of the stockholders of the Company
or any liens or encumbrances arising through the Company and when the Warrant
Shares are issued in accordance with the terms of the Warrants, they will be
validly issued and outstanding, fully paid and nonassessable.

                3.4 SEC Documents; Financial Statements. The Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 1999 and the
Company's most recent Proxy Statement and Notice of Annual Shareholders' Meeting
(the "SEC Documents"), in each case, as

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filed by the Company with the Securities and Exchange Commission (the
"Commission") have been made available to the Purchaser. The SEC Documents
conform in all material respects to the requirements of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), as applicable, and the rules and
regulations of the Commission thereunder. The SEC Documents did not as of their
dates contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
made therein, in light of the circumstances in which they were made, not
misleading. The financial statements of the Company included in the SEC
Documents (the "Financial Statements") comply as to form in all material
respects with applicable accounting requirements and with the published rules
and regulations of the Commission with respect thereto. Except as may be
indicated in the notes to the Financial Statements, the Financial Statements
have been prepared in accordance with generally accepted accounting principles
consistently applied and fairly present, in all material respects, the
consolidated financial position of the Company and its subsidiaries at the dates
thereof and the consolidated results of their operations, stockholders' equity
and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal, recurring adjustments).

                3.5 Subsequent Events. Since December 31, 1999, (i) neither the
Company nor any of its subsidiaries has incurred any liabilities or obligations,
contingent or otherwise, that are material in the aggregate to the Company and
its subsidiaries, taken as a whole, except in the ordinary course of business,
and (ii) there has been no change in the financial condition or operating
results of the Company and its subsidiaries, taken as a whole from that
reflected in the Financial Statements, except changes that occurred in the
ordinary course of business or that have not had a material adverse effect on
the Company and its subsidiaries, taken as a whole.

                3.6 Legal Proceedings. There are no legal proceedings pending
or, to the knowledge of the Company, threatened, to which the Company or any
subsidiary is a party or to which property of the Company or any subsidiary is
subject that is reasonably likely to have a material adverse effect on the
Company and its subsidiaries, taken as a whole.

                3.7 Government Approval. Subject to compliance with the
provisions of applicable securities laws of state or foreign jurisdictions, no
other approval of any public body (state or federal) is or will, on the Closing
Date be necessary in connection with the offer, issue and sale of the Initial
Shares and the Warrant as contemplated herein.

                3.8 No Breach. The consummation of the transactions contemplated
in the Purchase Agreement and the fulfillment of the terms thereof will not
result in (i) a violation of the Company's Certificate of Incorporation or
Bylaws, (ii) a breach of any of the material terms or provisions of, or
constitute a default under, any material indenture, mortgage, deed of trust or
other agreement or instrument to which the Company is a party or by which it is
bound or (iii) a violation of any law, rule, regulation, order, judgment or
decree applicable to the Company or by which any property or asset of the
Company is bound.

                3.9 Licenses and Consents. To the knowledge of the Company, each
of the Company and its subsidiaries is in possession of and operating in
compliance with all authorizations, licenses, certificates, consents, orders and
permits from state, federal and other governmental authorities that are material
to the conduct of its business, all of which are valid

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and in full force and effect, except to the extent that the failure to have or
be in compliance with such is not reasonably likely to have a material adverse
effect on the Company and its subsidiaries, taken as a whole.

                3.10 Outstanding Stock. All outstanding shares of capital stock
of the Company have been duly authorized and validly issued and are fully paid
and nonassessable; all issued and outstanding shares of capital stock of each
subsidiary of the Company have been duly authorized and validly issued and are
fully paid and nonassessable.

                3.11 Common Stock Registration. The Common Stock is registered
pursuant to Section 12(g) of the Exchange Act and is traded on the American
Stock Exchange (the "AMEX") and the Company has taken no action designed to, or,
to the Company's knowledge, likely to, have the effect of terminating the
registration of the Common Stock under the Exchange Act or delisting the Common
Stock from the AMEX without relisting on another national securities exchange or
the NASDAQ National Market, nor has the Company received notification that the
Commission or AMEX is contemplating terminating such registration or listing.

                3.12 Private Placement. The Company has not taken any action
inconsistent with the treatment of the sale of the Common Stock and Warrants
pursuant to the Purchase Agreement as a private placement exempt from the
registration requirements of the Securities Act of 1933, as amended (the
"Securities Act"), pursuant to the provisions of Section 4(2) thereof. Assuming
the accuracy of the Purchasers' representations and warranties in the Purchase
Agreement and the compliance by each Purchaser with all of its covenants and
agreements, the offer, sale, and issuance by the Company of the Common Stock and
Warrants to the Purchasers as contemplated herein constitute transactions exempt
from the registration requirements of Section 5 of the Securities Act.

        4. Representations and Warranties of the Purchaser; Access to
Information; Independent Investigation. The Purchaser hereby represents and
warrants to the Company as follows:

                4.1 Investment Intent. The Purchaser is purchasing the Common
Stock and Warrants for investment for its own account only, not as a nominee or
agent, and not with a view to, or for resale in connection with, any
"distribution" of any part thereof within the meaning of the Securities Act. The
Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same. The Purchaser does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
any participation to such person or to any third person with respect to any of
the Securities. The Purchaser understands that the Securities have not been
registered under the Securities Act or registered or qualified under any state
securities law in reliance on specific exemptions therefrom, which exemptions
may depend upon, among other things, the bona fide nature of Purchaser's
investment intent as expressed herein. The Purchaser further understands that
neither the Company nor any of its officers or directors has any obligation to
register the Securities under any federal or state securities act or law, except
as otherwise expressly set forth in Section 5 hereof.

                4.2 Investment Experience. The Purchaser is an "accredited
investor" within the meaning of Commission Rule 501 promulgated under the
Securities Act, and was not organized

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for the specific purpose of acquiring the Securities. The Purchaser had access
to the SEC Documents and has carefully reviewed the information contained
therein, including, but not limited to, the section entitled "Risk Factors". The
Purchaser is aware of the Company's business affairs and financial condition and
has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Securities.

                4.3 Authorization. The Purchaser has full right, power and
authority to enter into this Agreement and perform its obligations hereunder.
This Purchase Agreement has been duly and validly authorized, executed and
delivered on behalf of the Purchaser and is a valid and legally binding
agreement of the Purchaser enforceable in accordance with its terms, subject as
to enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium and other similar laws affecting the enforcement of creditors' rights
generally.

                4.4 Compliance with Securities Laws and Regulations. All
subsequent offers and sales of the Securities by the Purchaser shall be made
pursuant to registration under the Securities Act and qualification under the
applicable state securities laws or pursuant to exemptions from registration and
qualification as well as compliance with the provisions of Section 5.1 below.

                4.5 Reliance by Company. The Purchaser understands that the
Securities are being offered and sold to it in reliance on specific exemptions
from the registration and qualification requirements of United States federal
and state securities laws and that the Company is relying upon the truth and
accuracy of, and the Purchaser's compliance with the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Securities.

                4.6 No Government Approval. The Purchaser understands that no
United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the
Securities.

                4.7 No Legal, Tax or Investment Advice. The Purchaser
understands that nothing in the Purchase Agreement or any other materials
presented to the Purchaser in connection with the purchase and sale of the
Securities constitutes legal, tax or investment advice. The Purchaser has
consulted such legal, tax and investment advisors as it, in its sole discretion,
has deemed necessary or appropriate in connection with its purchase of the
Securities.

                4.8 Access to Information. The Purchaser acknowledges that it
has had the opportunity to ask questions, to receive answers concerning the
Company and the terms and conditions of the Offering from the Company and to
obtain any additional information from the Company that it considers necessary
or appropriate regarding the Offering, including, without limitation,
information relating to the engagement of Americal Securities, Inc. as placement
agent for the Offering pursuant to that certain fee engagement letter agreement,
dated March 14, 2000, which sets forth the cash fees, warrants and other
arrangements in connection with the Offering for deciding whether to purchase in
the Offering. In addition, the Purchaser acknowledges that no private placement
memorandum or similar document has been prepared in

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connection with the Offering and the Company has not made, and the Purchaser is
not relying on, any representations or warranties other than as specifically set
forth herein.

                4.9 Accredited Investor. The Purchaser makes the additional
representations and warranties set forth on Exhibit 4.9 attached hereto.

                4.10 Risk and Suitability. The Purchaser acknowledges and
realizes that Purchaser's purchase of the Securities involves a high degree of
risk and the Purchaser could lose a substantial portion or all of its investment
in the Securities. In addition, the Purchaser has such knowledge and experience
in business and financial matters, including, without limitation, investment in
technology and biotechnology companies, as will enable the Purchaser to fend for
itself, bear the economic risk of its investment and evaluate the merits and
risks of an investment in the Securities and to make an informed investment
decision.

                4.11 Use of Proceeds. Purchaser acknowledges and understands
that the Company's current intention is to use the proceeds of the Offering for
(i) payment of liabilities, (ii) working capital, (iii) acquisitions, joint
ventures and projects that the Company may have determined or may from time to
time determine to undertake and (iv) other purposes as the Company's Board of
Directors may determine from time to time. The allocation of proceeds shall be
at the discretion of the Company and may vary depending on changes in the
Company's business plans and circumstances. Such business plans and
circumstances may cause the Company to seek further financing in addition to the
Offering.

                4.12 Restricted Securities. The Purchaser understands that the
Securities it is purchasing are characterized as "restricted securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances. In this connection,
the Purchaser represents that it is familiar with Rule 144 promulgated by the
Commission under the Securities Act, as presently in effect, and understands the
resale limitations imposed thereby and by the Securities Act.

        5. Restrictions on Transfer, Information and Registration Rights.

                5.1 Restrictions on Transferability. The Securities shall not be
transferable in the absence of registration under the Securities Act or an
exemption therefrom, or in the absence of compliance with any term of the
Purchase Agreement. Without limiting the foregoing, (i) the Securities may be
offered, resold, pledged or otherwise transferred only (A) in a transaction
meeting the requirements of Rule 144 of the Commission ("Rule 144"), or in
accordance with another exemption from the registration requirements of the
Securities Act (and based upon an opinion of counsel if the Company so requests)
or (B) pursuant to an effective registration statement under the Securities Act,
in each case in accordance with the applicable securities laws of any state of
the United States or any other applicable jurisdiction and (ii) the Purchaser
will be required to notify any transferee of the Purchaser of any applicable
resale restrictions set forth above. The Company shall be entitled to give stop
transfer instructions to the transfer agent, and the transfer agent shall be
entitled to rely thereon, with respect to the Securities in order to enforce the
foregoing restrictions.

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                5.2 Restrictive Legends. Each certificate or document
representing any of the Securities shall bear substantially the following
legends (in addition to any legends required under applicable securities laws):

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
        1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES LAWS OF
        ANY STATE. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
        HYPOTHECATED (I) UNLESS REGISTERED UNDER THE SECURITIES ACT AND
        QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SUCH
        SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
        REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE QUALIFICATION
        REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY
        RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
        REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF HOLDERS THEREOF ARE
        SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND
        THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING
        ANY FUTURE HOLDERS) IS BOUND BY THE TERMS OF A STOCK AND WARRANT
        PURCHASE AGREEMENT BETWEEN THE ORIGINAL PURCHASER AND THE COMPANY
        (COPIES OF WHICH MAY BE OBTAINED FROM THE COMPANY).

                5.3 Registration on Form S-3.

                        5.3.1 Filing of Registration Statement. As soon as
practicable, and in any event within thirty (30) days after the Closing Date,
the Company shall file with the Commission pursuant to the Securities Act a
registration statement on Form S-3 (the "Registration Statement"), and shall use
its best efforts to secure effectiveness of the Registration Statement within
one hundred twenty (120) days after the Closing (and in any event, use its best
efforts to secure effectiveness of the Registration Statement as soon as
practicable after the Closing Date) (unless such registration is not permitted
under the applicable rules and regulations of the Commission), to register the
resale of the Initial Shares and Warrant Shares (the "Registrable Securities");
provided however, that the holders of Registrable Securities (the "Holders")
shall request the registration of at least fifty thousand (50,000) shares of
Registrable Securities; and provided further that in the event the Company fails
(due to an action or inaction of the Company or for any other reason) to be
eligible to file a registration statement on Form S-3, the Company shall file
with the Commission pursuant to the Securities Act within sixty (60) days after
the Closing Date a registration statement on Form S-1.

                        5.3.2 Registration Expenses. The Company shall pay all
Registration Expenses (as defined below) in connection with any registration,
qualification or compliance hereunder, and each Holder shall pay all Selling
Expenses (as defined below) and other expenses that are not Registration
Expenses relating to the

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Registrable Securities resold by such Holder. "Registration Expenses" shall mean
all expenses, except for Selling Expenses, incurred by the Company in complying
with the registration provisions herein described, including, without
limitation, all registration, qualification and filing fees, printing expenses,
fees and disbursements of counsel for the Company, blue sky fees and expenses
and the expense of any special audits incident to or required by any such
registration. "Selling Expenses" shall mean all selling commissions,
underwriting fees and stock transfer taxes applicable to the Registrable
Securities and all fees and disbursements of counsel for any Holder.

                        5.3.3 Additional Company Obligations. In the case of any
registration effected by the Company pursuant to these registration provisions,
the Company will use its reasonable best efforts to: (i) keep such registration
effective until two years after the Closing Date (or such earlier date as
provided for in the last sentence of this subsection); (ii) prepare and file
with the SEC such amendments and supplements to the Registration Statement and
the prospectus used in connection with the Registration Statement as may be
necessary to comply with the provisions of the Securities Act with respect to
the disposition of the Registrable Securities; (iii) furnish such reasonable
number of prospectuses and other documents incident thereto, including any
amendment of or supplement to the prospectus, as a Holder from time to time may
reasonably request; (iv) cause all such Registrable Securities registered as
described herein to be listed on each securities exchange and quoted on each
quotation service on which similar securities issued by the Company are then
listed or quoted; (v) provide a transfer agent and registrar for all Registrable
Securities registered pursuant to the Registration Statement and a CUSIP number
for all such Registrable Securities; (vi) comply with all applicable rules and
regulations of the Commission, (vii) file the documents required of the Company
and otherwise maintain requisite blue sky clearance in (A) all jurisdictions in
which any of the Registrable Securities are originally sold and (B) all other
states specified in writing by a Holder as may reasonably be required to sell
such Holder's Registrable Securities, provided as to clause (B), however, that
the Company shall not be required to qualify to do business or consent to
service of process in any state in which it is not now so qualified or has not
so consented, and (viii) notify each Holder selling Shares in such offering, at
any time when a prospectus relating thereto is required to be delivered under
the Securities Act, upon discovery that, or upon the discovery of the happening
of any event as a result of which, the prospectus included in such registration
statement contains an untrue statement of a material fact or omits to state a
material fact necessary to make the statements therein not misleading in the
light of the circumstances under which they were made, and the Company will
promptly prepare and file with the SEC and, at the request of any such Holder,
furnish to such seller a reasonable number of copies of, a supplement or
amendment to such prospectus so that, as thereafter delivered to the Holders of
such Shares, such prospectus will not contain an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein
not misleading in the light of the circumstances under which they were made. The
Company shall not be obligated to maintain the effectiveness of the registration
or satisfy the other obligations in this Section 5.3.3 (other than, in
connection with the Registration Statement, under iv, v, vi and vii above)
beyond two (2) years after the Closing Date or, with respect to any Holder, if
(i) such Holder holds less than one percent (1%) of the outstanding Common
Stock, (ii) all Shares that such Holder is entitled to have registered

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hereunder may immediately be sold under Rule 144 during any 90-day period and
(iii) the Company has provided notice to such Holder that it will no longer
maintain the effectiveness of the registration.

                        5.3.4 Providing Information. Each Holder of Registrable
Securities shall furnish to the Company such information regarding such Holder
and the distribution proposed by such Holder as the Company may reasonably
request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance described herein. Such Holder shall
represent that such information is true and complete.

                        5.3.5 Limitations on Sale. The Company may at any time
refuse to permit the Holders to resell any Registrable Securities pursuant to
the Registration Statement; provided, however, that in order to exercise this
right, the Company must deliver a certificate in writing to the Holders to the
effect that a delay in such sales is necessary because, in the good faith
judgment of the Company, sales pursuant to the Registration Statement would
require the public disclosure of information that would not otherwise be
required to be disclosed (which disclosure would, in the good faith judgment of
the Company, have a significant adverse effect on the Company) or could in other
respects constitute a violation of the federal securities laws or otherwise
materially adversely affect the Company. In such an event, the Company shall
notify the Holders promptly after it has determined that such circumstances no
longer exist. The Company shall not under any circumstances be entitled to
refuse to permit the Holders to resell any Registrable Securities under this
Section (i) more than two (2) times in the twelve (12) month period following
the Closing Date, and any individual period during which the Company refuses to
permit the Holder to resell any Registrable Securities in the twelve (12) month
period following the Closing Date shall not exceed sixty (60) days, and (ii)
more than two (2) times in the second twelve (12) month period following the
Closing Date, and any period during which the Company refuses to permit the
Holder to resell any Registrable Securities in the second twelve (12) month
period following the Closing Date shall not exceed forty-five (45) days. Each
Purchaser hereby covenants and agrees that it will not sell any Registrable
Securities pursuant to the Registration Statement during the periods the Company
refuses to permit the Holder to resell any Registrable Securities as set forth
in this Section.

                5.4 Indemnification and Contribution.

                        5.4.1 Indemnification by the Company. The Company agrees
to indemnify and hold harmless each Holder from and against any losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) to which
such Holder may become subject (under the Securities Act or otherwise) insofar
as such losses, claims, damages or liabilities (or actions or proceedings in
respect thereof) arise out of, or are based upon, any untrue statement of a
material fact contained in the Registration Statement, on the effective date
thereof; provided, however, that the Company shall not be liable in any such
case to the extent that such loss, claim, damages or liability arises out of, or
is based upon (i) an untrue statement or alleged untrue statement made in such
Registration Statement in reliance upon and in conformity with written
information

                                      I-9
<PAGE>   12

furnished to the Company by or on behalf of such Holder specifically for use in
preparation of the Registration Statement or (ii) any untrue statement in any
prospectus that is corrected in any subsequent prospectus or addendum or
supplement that was delivered to the Holder prior to the pertinent sale or sales
by the Holder, and the Company will reimburse the Holders for the expenses of a
single legal counsel and other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided,
however, that if there exists or shall exist a conflict of interest that would
make it inappropriate in the reasonable opinion of such single legal counsel for
the same counsel to represent all of the affected Holders, then each Holder or
group of Holders designated by such counsel shall be entitled to retain its own
counsel at the expense of the Company; provided further, that the indemnity
contained in this subsection shall not apply to amounts paid in settlement of
any such loss, claim, damages or liability if such settlement is effected
without the consent of the Company (which consent shall not be unreasonably
withheld).

                        5.4.2 Indemnification by Holder. Each Holder, severally
and not jointly, agrees to indemnify and hold harmless the Company from and
against any losses, claims, damages or liabilities (or actions or proceedings in
respect thereof) to which the Company may become subject (under the Securities
Act or otherwise) insofar as such losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) arise out of, or are based upon an
untrue statement made in such Registration Statement in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such Holder specifically for use in preparation of the Registration Statement,
provided, however, that no Holder shall be liable in any such case for any
untrue statement included in any Prospectus which statement has been corrected,
in writing, by such Holder and delivered to the Company at least seven business
days before the sale from which such loss occurred, and each Holder, severally
and not jointly, will, as incurred, reimburse the Company for any legal or other
expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim; provided, however, that no Holder shall be
required to pay an indemnity in any amount in excess of the net amount received
by the Holder from the sale of the Registrable Securities to which such
indemnity relates; provided further, that the indemnity contained in this
subsection shall not apply to amounts paid in settlement of any such loss,
claim, damages or liability if such settlement is effected without the consent
of the Holder (which consent shall not be unreasonably withheld).

                        5.4.3 Indemnification Procedures. Promptly after receipt
by any indemnified person of a notice of a claim or the beginning of any action
in respect of which indemnity is to be sought against an indemnifying person
pursuant to this Section 5.4, such indemnified person shall notify the
indemnifying person in writing of such claim or of the commencement of such
action, and, subject to the provisions hereinafter stated, in case any such
action shall be brought against an indemnified person and the indemnifying
person shall have been notified thereof, the indemnifying person shall be
entitled to participate therein, and, to the extent that it shall wish, to
assume the defense thereof, with counsel reasonably satisfactory to the
indemnified person; provided, however, that the failure of any indemnified party
to give notice as provided herein shall not relieve the indemnifying party of
its obligations hereunder unless the failure to give

                                      I-10
<PAGE>   13

such notice is materially prejudicial to an indemnifying party's ability to
defend such action. After notice from the indemnifying person to such
indemnified person of the indemnifying person's election to assume the defense
thereof, the indemnifying person shall not be liable to such indemnified person
for any legal expenses subsequently incurred by such indemnified person in
connection with the defense thereof; provided, however, that if there exists or
shall exist a conflict of interest that would make it inappropriate in the
reasonable opinion of counsel for the indemnified person for the same counsel to
represent both the indemnified person and such indemnifying person or any
affiliate or associate thereof, the indemnified person shall be entitled to
retain its own counsel at the expense of such indemnifying person; provided,
however, that in the case of the immediately preceding proviso, and
notwithstanding Section 5.4.1 above, the indemnifying person shall not be
responsible for the legal expenses of more than one counsel for all indemnified
persons.

                        5.4.4 Contribution in Lieu of Indemnity. If the
indemnification provided for in this Section 5.4 is unavailable to or
insufficient to hold harmless an indemnified party under Section 5.4.1 or 5.4.2
above in respect of any losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to therein, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as result of such losses, claims, damages or liabilities (or actions in respect
thereof) based on the relative fault of the indemnifying party and the
indemnified party as well as any other relevant equitable considerations. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company on the one hand or a Holder on the other and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Company and the Holders agree that it would not
be just and equitable if contribution pursuant to this Section 5.4.4 were
determined by pro rata allocation (even if the Holders were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to above in this Section
5.4.4. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred
to above in this Section 5.4.4 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 5.4.4, no Holder shall be required to contribute any
amount in excess of the net amount received by the Holder from the sale of the
Registrable Securities to which such loss relates. No person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Holders' obligations in this
Section 5.4.4 to contribute are several in proportion to their respective sales
of Registrable Securities to which such loss relates and not joint.

                5.5 Reports Under the Exchange Act. With a view to make
available to the Purchasers or Holders the benefits of Rule 144 promulgated
under the Securities Act and any other rule or regulation of the SEC that may at
any time permit a Purchaser or Holder to sell

                                      I-11
<PAGE>   14

Securities to the public without registration or pursuant to a registration on
Form S-3, the Company will covenant and agree to use reasonable efforts to: (i)
make and keep public information available, as those terms are understood and
defined in Rule 144, for two years after the Closing; (ii) file with the SEC in
a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act; and (iii) furnish to any Purchaser or
Holder, so long as the Purchaser or Holder owns any Securities, forthwith upon
request, (A) a written statement by the Company that it has complied with the
reporting requirements of Rule 144, (B) a copy of the most recent annual or
quarterly report of the Company, and (C) such other information as may be
reasonably requested in order to avail any Purchaser or Holder of any rule or
regulation of the SEC that permits the selling of any such Securities without
registration or pursuant to such Form S-3.

        6. Miscellaneous.

                6.1 Waivers and Amendments. With the written consent of the
Company and the record holders of more than fifty percent (50%) of the
Securities (on an as-converted-to-Common Stock basis) then outstanding that have
not previously been sold in a public offering, the terms of the Purchase
Agreement may be waived or amended.

                6.2 Governing Law. This Purchase Agreement shall be governed by
and construed in accordance with the internal laws of the State of California
without regard to its conflicts of laws principles. The Purchaser hereby
irrevocably submits to the jurisdiction of any State or United States Federal
court sitting in Alameda or San Francisco counties in the State of California
over any action or proceeding arising out of or relating to this Purchase
Agreement or any agreement contemplated hereby, and the Purchaser hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such State or Federal court. The Purchaser further
waives any objection to venue in such State and any objection to an action or
proceeding in such State on the basis of a non-convenient forum. The Purchaser
further agrees that any action or proceeding brought against the Company shall
be brought only in the State or United States Federal courts sitting in Alameda
or San Francisco counties in the State of California. THE PURCHASER AGREES TO
WAIVE ITS RIGHTS TO A JURY TRIAL OR ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS PURCHASE AGREEMENT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED
HEREBY.

                6.3 Survival. The representations, warranties, covenants and
agreements made herein shall survive any investigation made by the Company or
the Purchaser and the Closing for a period of two years.

                6.4 Successors and Assigns. Subject to Section 5, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors,
assigns, heirs, executors and administrators of the parties hereto (specifically
including successors in interest to the Securities).

                6.5 Entire Agreement. The Purchase Agreement (including all
Exhibits thereto) constitutes the full and entire understanding and agreement
between the parties with regard to the subject hereof.

                                      I-12
<PAGE>   15

                6.6 Notices, etc. All notices and other communications required
or permitted hereunder shall be effective upon receipt and shall be in writing
and may be delivered in person, by facsimile, or nationally recognized overnight
delivery service, addressed (a) if to the Purchaser, at the address set forth on
the signature page hereof or at such other address as the Purchaser shall have
furnished the Company in writing, or (b) if to the Company, at its address set
forth at the beginning of the Purchase Agreement, or at such other address as
the Company shall have furnished to the Purchaser in writing.

                6.7 Severability. If any provision of the Purchase Agreement
shall be judicially determined to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

                6.8 Titles and Subtitles. The titles of the paragraphs and
subparagraphs of the Purchase Agreement are for convenience of reference and
shall not, by themselves, determine the construction of the Purchase Agreement.

                6.9 Counterparts. The Purchase Agreement may be executed in any
number of counterparts, each of which be an original, but all of which together
shall constitute one instrument.

                                      I-13
<PAGE>   16

                                                                     EXHIBIT 1.1

Warrant No. ____________

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") OR UNDER THE SECURITIES LAWS OF ANY STATE. THE
SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED (I) UNLESS
REGISTERED UNDER THE SECURITIES ACT AND QUALIFIED UNDER APPLICABLE STATE
SECURITIES LAWS OR (II) UNLESS SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION
IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND THE
QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY
RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. THE SECURITIES REPRESENTED BY
THIS CERTIFICATE AND THE RIGHTS OF HOLDERS THEREOF ARE SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND THE HOLDER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING ANY FUTURE HOLDERS) IS
BOUND BY THE TERMS OF A STOCK AND WARRANT PURCHASE AGREEMENT BETWEEN THE
ORIGINAL PURCHASER AND THE COMPANY (COPIES OF WHICH MAY BE OBTAINED FROM THE
COMPANY).

                      REDEEMABLE WARRANT TO PURCHASE SHARES
                  OF COMMON STOCK OF INSITE VISION INCORPORATED

        This certifies that _______ (the "Holder"), for value received is
entitled to purchase from InSite Vision Incorporated, a Delaware corporation
(the "Company"), ___________ (________) fully paid and nonassessable shares of
the Company's Common Stock, par value $.01 per share (the "Warrant Shares") at a
price per share of [135% of the Purchase Price of the Common Stock sold with
this Warrant] (the "Stock Purchase Price") at any time or from time to time on
or after the Commencement Date (as defined below) up to and including 5:00 p.m.
(Pacific time) on the Expiration Date (as defined below), upon surrender to the
Company at its principal office at 965 Atlantic Avenue, Alameda, California
94501 (or at such other location as the Company may advise Holder in writing) of
this Warrant properly endorsed with the Form of Subscription attached hereto
duly filled in and signed and upon payment by cash, cashier's check or wire
transfer of immediately available funds of the aggregate Stock Purchase Price
for the number of shares for which this Warrant is being exercised determined in
accordance with the provisions hereof, such exercise to be conditioned upon the
accuracy of all representations and warranties contained in such Form of
Subscription. The Stock Purchase Price and the number of shares purchasable
hereunder are subject to adjustment as provided in Section 3 of this Warrant.
"Commencement Date" means the date which is six (6) months after the date of
issuance of this Warrant and "Expiration Date" means the earlier of (i) four (4)
years from the date hereof, (ii) the occurrence of events, the proposal of which
causes termination of this Warrant under Section 3.4, or (iii) on the date
specified in the Notice of

                                      W-1
<PAGE>   17

        Redemption (as defined below) pursuant to Section 7. This Warrant is
issued pursuant to the Unit Purchase Agreement between the Company and Holder
dated as of the date hereof (the "Purchase Agreement").

        This Warrant is subject to the following terms and conditions:

        1. Exercise; Issuance of Certificates: Payment for Shares. This Warrant
is exercisable at the option of Holder at any time or from time to time on or
after the Commencement Date and prior to or on the Expiration Date for all or a
portion of the shares of Warrant Shares which may be purchased hereunder, but if
this Warrant is to be exercised only in part, for not less than the greater of
(a) 25% of the number of Warrant Shares which may initially be purchased
hereunder or (b) 1,000 Warrant Shares (in either case as adjusted for any stock
dividend, split, combination, recapitalization or the like with respect to such
shares). The Company agrees that the shares of Warrant Shares purchased under
this Warrant shall be and are deemed to be issued to Holder as the record owner
of such shares as of the close of business on the date on which this Warrant
shall have been surrendered and payment made for such shares. Subject to the
provisions of Section 2, certificates for the shares of Warrant Shares so
purchased, together with any other securities or property to which Holder is
entitled upon such exercise, shall be delivered to Holder by the Company's
transfer agent at the Company's expense within a reasonable time after this
Warrant has been exercised. Each stock certificate so delivered shall be in such
denominations of Warrant Shares as may be requested by Holder and shall be
registered in the name of Holder or such other name as shall be designated by
Holder, subject to the limitations contained in Section 2. If, upon exercise of
this Warrant, fewer than all of the shares of Warrant Shares evidenced by this
Warrant are purchased prior to the date of expiration of this Warrant, one or
more new warrants substantially in the form of, and on the terms in, this
Warrant will be issued for the remaining number of shares of Warrant Shares not
purchased upon exercise of this Warrant.

        2. Shares to be Fully Paid; Reservation of Shares. The Company covenants
and agrees that all Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be duly authorized,
validly issued, fully paid and nonassessable and free from all preemptive rights
of any stockholder and free of all taxes, liens and charges with respect to the
issue thereof. The Company further covenants and agrees that during the period
within which the rights represented by this Warrant may be exercised, the
Company will use its best efforts to at all times have authorized and reserved,
for the purpose of issue or transfer upon exercise of this Warrant, a sufficient
number of shares of authorized but unissued Common Stock. When and as required
to provide for the exercise of the rights represented by this Warrant, the
Company will take all such action as may be necessary to assure that such shares
of Common Stock may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of any domestic securities
exchange or automated quotation system upon which the Common Stock may be
listed.

        3. Adjustment of Stock Purchase Price; Number of Shares. The Stock
Purchase Price and the number of shares of Warrant Shares purchasable upon the
exercise of this Warrant shall be subject to adjustment from time to time upon
the occurrence of certain events described in this Section 3.

                                      W-2
<PAGE>   18

        3.1 Adjustment of Purchase Price. In the event that the Company at any
time or from time to time after the issuance of this Warrant shall declare or
pay, without consideration, any dividend on the Common Stock payable in Common
Stock or in any right to acquire Common Stock for no consideration, or shall
effect a subdivision of the outstanding shares of Common Stock into a greater
number of shares of Common Stock (by stock split, reclassification or otherwise
than by payment of a dividend in Common Stock or in any right to acquire Common
Stock), or in the event the outstanding shares of Common Stock shall be combined
or consolidated, by reclassification or otherwise, into a lesser number of
shares of Common Stock, then the Stock Purchase Price in effect immediately
prior to such event shall, concurrently with the effectiveness of such event, be
proportionately decreased or increased, as appropriate. In the event that the
Company shall declare or pay, without consideration, any dividend on the Common
Stock payable in any right to acquire Common Stock for no consideration, then
the Company shall be deemed to have made a dividend payable in Common Stock in
an amount of shares equal to the maximum number of shares issuable upon exercise
of such rights to acquire Common Stock. Upon each adjustment of the Stock
Purchase Price pursuant to this Section 3.1, the holder of this Warrant shall
thereafter be entitled to purchase, at the Stock Purchase Price resulting from
such adjustment, the number of shares of Common Stock obtained by multiplying
the Stock Purchase Price in effect immediately prior to such adjustment by the
number of shares of Common Stock purchasable pursuant hereto immediately prior
to such adjustment, and dividing the product thereof by the Stock Purchase Price
resulting from such adjustment.

        3.2 Adjustments for Reclassification and Reorganization. If the Common
Stock shall be changed into the same or a different number of shares of any
other class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of shares
provided for in Section 3.1), the Stock Purchase Price then in effect shall,
concurrently with the effectiveness of such reorganization or reclassification,
be proportionately adjusted so that this Warrant shall represent the right to
purchase, in lieu of the number of shares of Common Stock which this Warrant
would otherwise represent the right to purchase, a number of shares of such
other class or classes of stock equivalent to the number of shares of Common
Stock which this Warrant would have otherwise entitled the holder to purchase
immediately before that change.

        3.3 Notice of Adjustment. Upon any adjustment of the Stock Purchase
Price or any increase or decrease in the number of shares of Common Stock
purchasable upon the exercise of this Warrant, the Company shall within five
business days give written notice thereof, by first class mail, postage prepaid
(or by international delivery service, for international addresses), addressed
to the registered holder of this Warrant at the address of such holder as shown
on the books of the Company. The notice shall be signed by the Company's chief
financial officer and shall state the Stock Purchase Price resulting from such
adjustment and the increase or decrease, if any, in the number of shares
purchasable at such price upon the exercise of this Warrant, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

        3.4 Certain Termination Events; Other Notices. If at any time the
Company shall propose to:

                (a) declare any cash dividend upon its Common Stock;

                                      W-3
<PAGE>   19

                (b) declare or make any dividend or other distribution to the
holders of its Common Stock, whether in cash, property or other securities;

                (c) effect any reorganization or reclassification of the capital
stock of the Company or any consolidation or merger of the Company with or into
another corporation or any sale of all or substantially all of the property of
the Company; or

                (d) effect a voluntary or involuntary dissolution, liquidation
or winding-up of the Company;

then, in any one or more of said cases, the Company shall give, by certified or
registered mail, postage prepaid, or international delivery service for
international deliveries, addressed to the holder of this Warrant at the address
of such holder as shown on the books of the Company, (i) at least fifteen (15)
business days' prior written notice of the date on which the books of the
Company shall close or a record shall be taken for such dividend or distribution
or for determining rights to vote in respect of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up, and (ii) in the case of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding-up, at least
fifteen (15) business days' written notice of, the date when the same shall take
place. Any notice given in accordance with clause (i) above shall also specify,
in the case of any such dividend or distribution, the record date for such
dividend or distribution, if after the Commencement Date. Any notice given in
accordance with clause (ii) above shall also specify the date on which the
holders of Common Stock shall be entitled to exchange their Common Stock for
securities or other property, if any, deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up, as the case may be and in connection with the occurrence of an event
described in clause (d) above such notice shall specify the anticipated net
equity value that will accrue to Common Stock holders so that the Holder can
make an informed decision whether or not to exercise this Warrant. In the event
that the Holder of the Warrant does not exercise this Warrant prior to the
occurrence of a proposed event (but not upon the proposal of such event)
described in clause (a) or (b) above, the Holder shall not be entitled to
receive the benefits accruing to existing holders of the Common Stock in such
event. Upon the occurrence of a proposed event (but not upon the proposal of
such event) described in clause (c) in which the holders of the Company's voting
securities immediately prior to such event do not hold at least fifty percent
(50%) of the voting securities of the Company or the surviving entity (in a sale
of assets, the Company shall be the surviving entity) resulting from such event
immediately after such event, this Warrant shall terminate unless the Company
has negotiated (which it is under no obligation to do) for the assumption of
this Warrant. Upon the occurrence of a proposed event (but not upon the proposal
of such event) described in clause (c) and, subject to the immediately preceding
sentence, the Company's negotiation for the assumption of this Warrant (for
which the Company has no obligation to negotiate), the Holder shall be entitled
thereafter, upon payment of the Stock Purchase Price in effect immediately prior
to such action, to receive upon exercise of this Warrant the class and number of
shares which the Holder would have been entitled to receive after the occurrence
of such event had this Warrant been exercised immediately prior to such event.
In connection with the transactions described in clause (c) and provided that
this Warrant does not terminate as provided in the second sentence immediately
preceding this sentence, the Company will require each person (other than the
Company) that may be required to deliver any cash, stock, securities

                                      W-4
<PAGE>   20

or other property upon the exercise of this Warrant as provided herein to
assume, by written instrument delivered to the Holder of this Warrant (x) the
obligations of the Company under this Warrant and (y) the obligation to deliver
to such Holder such cash, stock, securities or other property as such Holder may
be entitled to receive in accordance with the provisions of this Section 3. Upon
the occurrence of an event the proposal of which is described in clause (d),
this Warrant shall terminate. Notwithstanding any other provision hereof, no
Holder shall have the right to obtain an injunction or restraining order or
otherwise interfere with or prevent the occurrence of any of the actions
described in (a) - (d) above.

                3.5 Adjustment of Number of Warrant Shares. The number of
Warrant Shares purchasable hereunder shall be reduced on a one-for-one basis by
the number of shares of Common Stock (or Common Stock equivalents) sold directly
or indirectly, including, without limitation, any short sale, third party short
sales or holdings of a "put equivalent position" (as defined in Rule 16a-1 of
the 1934 Act), of the Company's Common Stock by the Holder from the date hereof
until the Commencement Date. Prior to or simultaneously with the first exercise
of this Warrant by the Holder (or the transfer of this Warrant), the Holder
shall provide the Company with an affidavit and other reasonable supporting
materials as to the foregoing.

        4. Issue Tax. The issuance of certificates for the Warrant Shares upon
the exercise of the Warrant shall be made without charge to the Holder of the
Warrant for any issue tax in respect thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of
any transfer involved in the issuance and delivery of any certificate in a name
other than that of the then Holder of the Warrant being exercised.

        5. No Voting or Dividend Rights; Limitation of Liability. Nothing
contained in this Warrant shall be construed as conferring upon the Holder
hereof the right to vote or to consent or to receive notice as a stockholder in
respect of meetings of stockholders for the election of directors of the Company
or any other matters or any rights whatsoever as a stockholder of the Company.
Except for the adjustment to the Stock Purchase Price pursuant to Section 3.2 in
the event of a dividend on the Common Stock payable in shares of Common Stock,
no dividends or interest shall be payable or accrued in respect of this Warrant
or the interest represented hereby or the shares purchasable hereunder until,
and only to the extent that, this Warrant shall have been exercised. No
provisions hereof, in the absence of affirmative action by the Holder to
purchase shares of Warrant Shares, and no mere enumeration herein of the rights
or privileges of the Holder hereof, shall give rise to any liability of such
Holder for the Stock Purchase Price or as a stockholder of the Company whether
such liability is asserted by the Company or by its creditors.

        6. Restrictions on Transferability of Securities: Compliance With
Securities Act.

                6.1 Restrictions on Transferability. The Warrant and the Warrant
Shares (collectively, the "Securities") shall not be transferable except upon
the conditions specified in the Purchase Agreement, which conditions are
intended to insure compliance with the provisions of the Securities Act and
applicable "blue sky" law.

                6.2 Restrictive Legend. Each certificate representing the
Securities or any other securities issued in respect of the Securities upon any
stock split, stock dividend, recapitalization,

                                      W-5
<PAGE>   21

merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of the Purchase Agreement) be stamped or otherwise imprinted with a
legend substantially in the following form (in addition to any legend required
under applicable state securities laws):

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
        1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER THE SECURITIES LAWS OF
        ANY STATE. THE SECURITIES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
        HYPOTHECATED (I) UNLESS REGISTERED UNDER THE SECURITIES ACT AND
        QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SUCH
        SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
        REGISTRATION REQUIREMENTS OF THE 1933 ACT AND THE QUALIFICATION
        REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS AND THE COMPANY
        RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH
        REGISTRATION AND QUALIFICATION ARE NOT REQUIRED. THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF HOLDERS THEREOF ARE
        SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND
        THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING
        ANY FUTURE HOLDERS) IS BOUND BY THE TERMS OF A UNIT PURCHASE AGREEMENT
        BETWEEN THE ORIGINAL PURCHASER AND THE COMPANY (COPIES OF WHICH MAY BE
        OBTAINED FROM THE COMPANY).

                6.3 Exchange of Warrant. Subject to the terms and conditions
hereof, including the restrictions on transfer in this Section 6 and in the
Purchase Agreement, upon surrender of this Warrant to the Company with a duly
executed Assignment Form in the form attached hereto and funds sufficient to pay
any transfer tax, the Company shall, without charge, execute and deliver a new
Warrant or Warrants of like tenor in the name of the assignee named in such
Assignment Form and this Warrant shall promptly be canceled; provided, however,
that if the transfer is for less than all of this Warrant, the transferor shall
pay the reasonable costs of the Company incurred in connection with a transfer
of Warrants to purchase less than the greater of (a) 25% of the Warrant Shares
which may initially be purchased hereunder or (b) 1,000 Warrant Shares (in
either case, as adjusted for any stock dividend, split, combination,
recapitalization or the like with respect to such shares). The term "Warrant" as
used herein shall be deemed to include any Warrants issued in exchange for this
Warrant.

                6.4 Ownership of Warrant. The Company may deem and treat the
person in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary, until presentation of this Warrant for registration of transfer
as provided in Section 6.3.

                                      W-6
<PAGE>   22

        7. Redemption. This Warrant may be redeemed at the option of the Company
at a redemption price of $.01 (subject to adjustment in good faith by the
Company's Board of Directors in the event of stock splits or other events
described in Section 3.1 or 3.2 above) (the "Redemption Price"), per Warrant at
any time after the date hereof provided that (i) the weighted average closing
bid price of the Common Stock as reported by the National Association of
Securities Dealers Automated Quotation ("Nasdaq") if the Common Stock is then
traded on the over-the-counter market or the Nasdaq Small Cap market, or (ii)
the weighted average closing sale price, if the Common Stock is then traded on
Nasdaq/NMS or a national securities exchange, provided that such exchange or
market is the primary trading market for the Company, shall have been [200% of
the Purchase Price of the Common Stock sold with this Warrant] for the ten (10)
consecutive trading days during a period ending within five (5) days prior to
Redemption Notice Date (as defined below) (subject to adjustment in good faith
by the Company's Board of Directors in the event of any stock splits or other
events as described in Section 3.1 or 3.2 above) provided, that any time after
the Redemption Notice Date (as defined below) and prior to the Redemption Date
(as defined below) the Holder may exercise this Warrant, provided, further, in
the event that the Redemption Notice Date is prior to six (6) months after the
date hereof, the Commencement Date shall be deemed to be the Redemption Notice
Date and notwithstanding anything herein or in the Purchase Agreement to the
contrary, after such date the Holder may exercise this Warrant at any time prior
to the Redemption Date. The Company shall provide written notice of redemption
which shall specify the Redemption Date (the "Notice of Redemption") to the
Holder not later than five (5) days after the election of the Company to redeem
this Warrant pursuant to this Section 7. On and after the date fixed for
redemption (the "Redemption Date") which shall be no less than thirty (30) days
after the date that the Notice of Redemption is sent to the Holder (the
"Redemption Notice Date") the Holder shall have no rights with respect to this
Warrant except to receive the Redemption Price upon surrender of this Warrant
Certificate.

        8. Modification and Waiver. Except as otherwise provided herein, this
Warrant and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which
enforcement of the same is sought.

        9. Notices. Except as otherwise provided herein, any notice, request or
other document required or permitted to be given or delivered to the holder
hereof or the Company shall be delivered or shall be sent by United States
certified or registered mail, postage prepaid or reputable overnight courier
service (or international delivery service for international deliveries) to
Holder at its address as shown on the books of the Company or to the Company at
the address indicated therefor in the first paragraph of this Warrant.

        10. Descriptive Headings and Governing Law. The descriptive headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
governed by and construed in accordance with the internal laws of the State of
California without regard to its conflicts of laws principles. The Holder hereby
irrevocably submits to the jurisdiction of any State or United States Federal
court sitting in Alameda or San Francisco counties in the State of California
over any action or proceeding arising out of or relating to this Warrant or any
agreement contemplated hereby, and the Holder hereby irrevocably agrees that all
claims in respect of such action or proceeding may be heard and determined in
such State or Federal court. The Holder further waives any objection

                                      W-7
<PAGE>   23

to venue in such State and any objection to an action or proceeding in such
State on the basis of a non-convenient forum. The Holder further agrees that any
action or proceeding brought against the Company shall be brought only in the
State or United States Federal courts sitting in Alameda or San Francisco
counties in the State of California. THE HOLDER AGREES TO WAIVE ITS RIGHTS TO A
JURY TRIAL OR ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
WARRANT OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED HEREBY.

        11. Lost Warrants or Stock Certificates. The Company represents and
warrants to Holder that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of any Warrant or stock
certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity and, if requested, bond reasonably satisfactory to the
Company, or, in the case of any such mutilation, upon surrender and cancellation
of such Warrant or stock certificate, the Company at its expense will make and
deliver a new Warrant or stock certificate, of like tenor, in lieu of the lost,
stolen, destroyed or mutilated Warrant or stock certificate.

        12. Amendment. This Warrant is one of a series of warrants (the "Warrant
Series") to purchase, in the aggregate, up to 1,400,000 shares of the Company's
Common Stock. This Warrant may be amended only with the written approval of the
Company and (i) the Holder of this Warrant or (ii) the holders of a majority of
the warrants in the Warrant Series; provided, however, that any amendment
effected pursuant to (ii) above shall be made in the same manner to all warrants
in the Warrant Series.

        13. Binding Effect; Benefits. This Warrant shall inure to the benefit of
and shall be binding upon the Company and the Holder and their respective heirs,
legal representatives, successors and assigns. Nothing in this Warrant,
expressed or implied, is intended to or shall confer on any person other than
the Company and the Holder, or their respective heirs, legal representatives,
successors or assigns, any rights, remedies, obligations or liabilities under or
by reason of this Warrant.

        14. Fractional Shares. No fractional shares shall be issued upon
exercise of this Warrant. The Company shall, in lieu of issuing any fractional
share, pay the Holder entitled to such fraction a sum in cash equal to such
fraction multiplied by the market price of the Common Stock, which shall be, on
any date, the closing price for the Common Stock or the closing bid if no sales
were reported, as quoted on the exchange or market that is the primary trading
market for the Company.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officers, thereunto duly authorized this _____ day of _______, 2000.

                                       INSITE VISION INCORPORATED

                                       By:
                                          ------------------------------------
                                          Name: S. Kumar Chandrasekaran, Ph.D.
                                          Title: CEO and Chairman on the Board

                                      W-8
<PAGE>   24

                              FORM OF SUBSCRIPTION

                  (To be signed only upon exercise of Warrant)

To:     InSite Vision Incorporated

        The undersigned, the holder of the within Warrant, hereby irrevocably
elects to exercise such Warrant for, and to purchase thereunder,
_________________ (__________________) shares of common stock (the "Common
Stock") of InSite Vision Incorporated (the "Company"), and herewith makes
payment in the amount of $________ therefore. The certificates for such shares
should be issued in the name of, and delivered to, __________________ whose
address is __________________

        The undersigned represents, unless the exercise of this Warrant has been
registered under the Securities Act of 1933, as amended (the "Securities Act"),
that (i) the undersigned is acquiring such Common Stock for his, her or its own
account for investment and not with a view to or for sale in connection with any
distribution thereof, (ii) the undersigned has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of the undersigned's investment in the shares of Common Stock, (iii) the
undersigned has received all of the information the undersigned requested from
the Company and the undersigned considers necessary or appropriate for deciding
whether to purchase the shares, (iv) the undersigned has the ability to bear the
economic risks of the undersigned's prospective investment and (v) the
undersigned is able, without materially impairing his, her or its financial
condition, to hold the shares of Common Stock for an indefinite period of time
and to suffer complete loss on the undersigned's investment.

        The undersigned is an "accredited investor", as defined in Regulation D
promulgated by the Securities and Exchange Commission under the Securities Act
on the date hereof.

DATED: _______________________

                                      ------------------------------------------
                                      (Signature must conform in all respects to
                                      name of holder as specified on the face of
                                      the Warrant)

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

                                      ------------------------------------------
                                      (Address)

                                      W-9
<PAGE>   25

        THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR
OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
FILED UNDER THE ACT OR PURSUANT TO EXEMPTIONS FROM REGISTRATION UNDER THE ACT
AND FROM THE QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS.

                                 ASSIGNMENT FORM

               (To be executed only upon transfer of this Warrant)

        For value received, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto __________________ (the
"Assignee") the right represented by such Warrant to purchase ___________
Warrant Shares and all other rights of the Holder with respect thereto under the
within Warrant, and appoints ________________ as Attorney to make such transfer
on the books of InSite Vision Incorporated maintained for such purpose, with
full power of substitution in the premises.

        The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the Warrant Shares to be issued upon exercise
hereof are being acquired for investment and that the Assignee will not offer,
sell or otherwise dispose of this Warrant or any Warrant Shares to be issued
upon exercise hereof except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended, or any state securities
laws. Further, the Assignee has acknowledged that upon exercise of this Warrant,
the Assignee shall, if requested by the Company, confirm in writing, in a form
satisfactory to the Company, that the Warrant Shares so purchased are being
acquired for investment and not with a view toward distribution or resale and
such other representations and warranties as the Company may reasonably request.

Dated: ___________________

                                            Signature
                                                     ---------------------------

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

                                                     ---------------------------
                                                           (Street Address)

                                                     ---------------------------
                                                     (City)  (State)  (Zip Code)

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

                                      W-10
<PAGE>   26

                                                                  EXHIBIT 2.1(a)

                           WIRE TRANSFER INSTRUCTIONS

Bank:                 Union Bank of California
                      1600 Harrison Street
                      Oakland, California 94612

Account Number:       7150173749
                      ABA Number:   122000496
Name of:              InSite Vision Incorporated

<PAGE>   27

                                                                     EXHIBIT 4.9

                       INVESTMENT REPRESENTATION STATEMENT

        1. Information Concerning the Company. Purchaser represents and warrants
that Purchaser has been provided with such information concerning the Company
that Purchaser deems necessary and appropriate to enable Purchaser to evaluate
the financial risk inherent in making an investment in the Securities. Purchaser
further acknowledges that Purchaser has received satisfactory and complete
information concerning the business and financial condition of the Company in
response to all inquiries in respect thereof.

        2. Economic Risk and Suitability. Purchaser represents and warrants as
follows:

                2.1 Purchaser realizes that Purchaser's purchase of the
Securities involves a high degree of risk and will be a highly speculative
investment and that Purchaser is able, without impairing Purchaser's financial
condition, to hold the Securities for an indefinite period of time and to suffer
a complete loss of Purchaser's investment.

                2.2 Purchaser has carefully considered and has, to the extent
Purchaser believes such discussions necessary, discussed with Purchaser's
professional, legal, tax and financial advisors the suitability of an investment
in the Securities for the particular legal, tax and financial situation of
Purchaser and that Purchaser and/or Purchaser's advisors have determined that
the Securities are a suitable investment for Purchaser.

                2.3 Purchaser has such knowledge and experience in business and
financial matters as will enable Purchaser to evaluate the merits and risks of
an investment in the Securities and to make an informed investment decision.

                2.4 Purchaser has carefully read this Agreement and the Company
has made available to Purchaser or Purchaser's advisors all information and
documents requested by Purchaser relating to investment in the Securities, and
has provided answers to Purchaser's satisfaction to all of Purchaser's questions
concerning the Company and the Securities to be acquired.

                2.5 Purchaser understands that neither the Company nor any of
its officers/directors, has any obligation to register the Securities under any
federal or state securities act or law except as otherwise expressly set forth
in Section 5 of the Purchase Agreement.

                2.6 All information that Purchaser has provided concerning
himself or herself, his or her financial position and (each of) his or her
representative(s), if any, is correct and complete as of the date set forth
below, and if there should be any material change in such information, Purchaser
will provide such information to the Company as soon as practicable thereafter.

                2.7 Purchaser understands that the Company is relying on the
truth and accuracy of the declarations, representations, warranties and
agreements made by Purchaser to the Company herein in transferring the
Securities to Purchaser.

<PAGE>   28

                2.8 Purchaser confirms that Purchaser has received no general
solicitation or general advertisement and has attended no seminar or meeting
(whose attendees have been invited by any general solicitation or general
advertisement) and has received no advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media or
broadcast or television or radio regarding the Offering of the Securities.

        3. Status of Purchaser. Purchaser represents and warrants that Purchaser
is an "Accredited Investor", as defined in Rule 501 of the Commission because
Purchaser is either:

                        (a) A natural person whose individual net worth, or
joint net worth with that person's spouse, at the time of his/her purchase,
exceeds $1 million;

                        (b) A natural person who had individual income in excess
of $200,000 in each of the two most recent years or joint income with that
person's spouse in excess of $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the current year;

                        (c) a bank as defined in Section 3(a)(2) of the Act;

                        (d) a savings and loan association or other institution
as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its
individual or fiduciary capacity;

                        (e) a broker or dealer registered pursuant to Section 15
of the Exchange Act;

                        (f) an insurance company as defined in Section 2(13) of
the Securities Act;

                        (g) an investment company registered under the
Investment Company Act of 1940, as amended, or a business development company as
defined in Section 2(a)(48) of the Securities Act;

                        (h) a small business investment company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the Small
Business Investment Act of 1958;

                        (i) a private business development company as defined in
Section 202(a)(22) of the Investment Advisers Act of 1940, as amended;

                        (j) a corporation, partnership, an organization
described in Section 501(c)(3) of the Internal Revenue Code of 1986, or a
Massachusetts or similar business trust, not formed for the specific purpose of
acquiring the Securities, with total assets in excess of $5,000,000;

                        (k) a trust, with total assets in excess of $5,000,000,
not formed for the specific purpose of acquiring the Securities, whose purchase
of the Securities is

                                       2

<PAGE>   29

directed by a sophisticated person as described in Rule 506(b)(ii) of Regulation
D promulgated under the Securities Act; or

                                (l) an entity in which all of the equity owners
meet one of the requirements of paragraphs (a) through (k) hereof.

        4. Residency. Purchaser is a bona fide resident of __________________.

                                       3<PAGE>   1
                                                                     Exhibit 4.3

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                             DAW TECHNOLOGIES, INC.

                                     WARRANT

Warrant No. _                                              Dated: April 28, 2000

        Daw Technologies,Inc., a Utah corporation (the "Company"), hereby
certifies that, for value received, __________ or its registered assigns
("Holder"), is entitled, subject to the terms set forth below, to purchase from
the Company up to a total of ______ shares of common stock, $.01 par value per
share (the "Common Stock"), of the Company (each such share, a "Warrant Share"
and all such shares, the "Warrant Shares") at an exercise price equal to $1.32
per share (as adjusted from time to time as provided in Section 8, the "Exercise
Price"), at any time and from time to time from and after the date hereof and
through and including April 28, 2003 (the "Expiration Date"), and subject to the
following terms and conditions:

               a. Registration of Warrant. The Company shall register this
Warrant, upon records to be maintained by the Company for that purpose (the
"Warrant Register"), in the name of the record Holder hereof from time to time.
The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, and the Company shall not be affected
by notice to the contrary.

               b. Registration of Transfers and Exchanges.

                      (a) The Company shall register the transfer of any portion
of this Warrant in the Warrant Register, upon surrender of this Warrant, with
the Form of Assignment attached hereto duly completed and signed, to the
Transfer Agent or to the Company at the address for notice set forth in Section
12. Upon any such registration or transfer, a new warrant to purchase Common
Stock, in substantially the form of this Warrant (any such new warrant, a "New
Warrant"),

<PAGE>   2
                                                                     Exhibit 4.3

evidencing the portion of this Warrant so transferred shall be issued to the
transferee and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring Holder. The
acceptance of the New Warrant by the transferee thereof shall be deemed the
acceptance of such transferee of all of the rights and obligations of a holder
of a Warrant.

                      (b) This Warrant is exchangeable, upon the surrender
hereof by the Holder to the office of the Company at the address for notice set
forth in Section 12 for one or more New Warrants, evidencing in the aggregate
the right to purchase the number of Warrant Shares which may then be purchased
hereunder. Any such New Warrant will be dated the date of such exchange.

               c. Duration and Exercise of Warrants.

                      (a) This Warrant shall be exercisable by the registered
Holder on any business day before 6:30 P.M., New York City time, at any time and
from time to time on or after the date hereof to and including the Expiration
Date. At 6:30 P.M., New York City time on the Expiration Date, the portion of
this Warrant not exercised prior thereto shall be and become void and of no
value. Prior to the Expiration Date, the Company may not call or otherwise
redeem this Warrant without the prior written consent of the Holder.

                      (b) Subject to Sections 2(b), 5 and 9, upon surrender of
this Warrant, with the Form of Election to Purchase attached hereto duly
completed and signed, to the Company at its address for notice set forth in
Section 12 and upon payment of the Exercise Price multiplied by the number of
Warrant Shares that the Holder intends to purchase hereunder, in the manner
provided hereunder, all as specified by the Holder in the Form of Election to
Purchase, the Company shall promptly (but in no event later than 3 business days
after the Date of Exercise (as defined herein)) issue or cause to be issued and
cause to be delivered to or upon the written order of the Holder and in such
name or names as the Holder may designate, a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends except (i) either in
the event that a registration statement covering the resale of the Warrant
Shares and naming the Holder as a selling stockholder thereunder is not then
effective or the Warrant Shares are not freely transferable without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act of
1933 as amended (the "Securities Act"), or (ii) if this Warrant shall have been
issued pursuant to a written agreement between the original Holder and the
Company, as required by such agreement. Any person so designated by the Holder
to receive Warrant Shares shall be deemed to have become holder of record of
such Warrant Shares as of the Date of Exercise of this Warrant. The Company
shall, upon request of the Holder, if available, use its reasonable efforts to
deliver Warrant Shares hereunder electronically through the Depository Trust
Corporation or another established clearing corporation performing similar
functions.

                      A "Date of Exercise" means the date on which the Company
shall have received (i) this Warrant (or any New Warrant, as applicable), with
the Form of Election to Purchase attached hereto (or attached to such New
Warrant) appropriately completed and duly signed, and (ii)

<PAGE>   3
                                                                     Exhibit 4.3

payment of the Exercise Price for the number of Warrant Shares so indicated by
the holder hereof to be purchased.

                      (c) This Warrant shall be exercisable, either in its
entirety or, from time to time, for a portion of the number of Warrant Shares.
If less than all of the Warrant Shares which may be purchased under this Warrant
are exercised at any time, the Company shall issue or cause to be issued, at its
expense, a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares for which no exercise has been evidenced by this Warrant.

               d. Piggyback Registration Rights. During the Effectiveness Period
(as defined in the Registration Rights Agreement, of even date herewith, between
the Company and the original Holder), the Company may not file any registration
statement with the Securities and Exchange Commission (other than registration
statements of the Company filed on Form S-8 or Form S-4, each as promulgated
under the Securities Act, pursuant to which the Company is registering
securities pursuant to a Company employee benefit plan or pursuant to a merger,
acquisition or similar transaction including supplements thereto, but not
additionally filed registration statements in respect of such securities) at any
time when there is not an effective registration statement covering the resale
of the Warrant Shares and naming the Holder as a selling stockholder thereunder,
unless the Company provides the Holder with not less than 20 days notice of its
intention to file such registration statement and provides the Holder the option
to include any or all of the applicable Warrant Shares therein. The piggyback
registration rights granted to the Holder pursuant to this Section shall
continue until all of the Holder's Warrant Shares have been sold in accordance
with an effective registration statement or upon the Expiration Date. The
Company will pay all registration expenses in connection therewith.

               e. Payment of Taxes. The Company will pay all documentary stamp
taxes attributable to the issuance of Warrant Shares upon the exercise of this
Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of
the Holder. The Holder shall be responsible for all other tax liability that may
arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

               f. Replacement of Warrant. If this Warrant is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and
substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and
indemnity, if requested, satisfactory to it. Applicants for a New Warrant under
such circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable charges as the Company may prescribe.

               g. Reservation of Warrant Shares. The Company covenants that it
will at all times reserve and keep available out of the aggregate of its
authorized but unissued Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein

<PAGE>   4
provided, the number of Warrant Shares which are then issuable and deliverable
upon the exercise of this entire Warrant, free from preemptive rights or any
other actual contingent purchase rights of persons other than the Holder (taking
into account the adjustments and restrictions of Section 8). The Company
covenants that all Warrant Shares that shall be so issuable and deliverable
shall, upon issuance and the payment of the applicable Exercise Price in
accordance with the terms hereof, be duly and validly authorized, issued and
fully paid and nonassessable.

               h. Certain Adjustments. The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 8. Upon each such adjustment of the
Exercise Price pursuant to this Section, the Holder shall thereafter prior to
the Expiration Date be entitled to purchase, at the Exercise Price resulting
from such adjustment, the number of Warrant Shares obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares issuable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment.

                      (a) If the Company, at any time while this Warrant is
outstanding, (i) shall pay a stock dividend (except scheduled dividends paid on
outstanding preferred stock as of the date hereof which contain a stated
dividend rate) or otherwise make a distribution or distributions on shares of
its Common Stock or on any other class of capital stock payable in shares of
Common Stock, (ii) subdivide outstanding shares of Common Stock into a larger
number of shares, or (iii) combine outstanding shares of Common Stock into a
smaller number of shares, the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding before such event and of which the
denominator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding after such event. Any adjustment made pursuant to
this Section shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision or combination, and shall apply to successive subdivisions and
combinations.

                      (b) In case of any reclassification of the Common Stock or
any compulsory share exchange pursuant to which the Common Stock is converted
into other securities, cash or property, then the Holder shall have the right
thereafter to exercise this Warrant only into the shares of stock and other
securities and property receivable upon or deemed to be held by holders of
Common Stock following such reclassification or share exchange, and the Holder
shall be entitled upon such event to receive such amount of securities or
property equal to the amount of Warrant Shares such Holder would have been
entitled to had such Holder exercised this Warrant immediately prior to such
reclassification or share exchange. The terms of any such reclassification or
share exchange shall include such terms so as to continue to give to the Holder
the right to receive the securities or property set forth in this Section 8(b)
upon any exercise following any such reclassification or share exchange.

<PAGE>   5
                                                                     Exhibit 4.3

                      (c) If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to holders
of this Warrant) evidences of its indebtedness or assets or rights or warrants
to subscribe for or purchase any security (excluding those referred to in
Sections 8(a), (b) and (d)), then in each such case the Exercise Price shall be
determined by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the Exercise Price
determined as of the record date mentioned above, and of which the numerator
shall be such Exercise Price on such record date less the then fair market value
at such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of Common Stock as determined by
the Company's independent certified public accountants that regularly examine
the financial statements of the Company (an "Appraiser").

                      (d) If the Company or any subsidiary thereof, as
applicable with respect to Common Stock Equivalents (as defined below), at any
time while this Warrant is outstanding, shall issue shares of Common Stock or
rights, warrants, options or other securities or debt that is convertible into
or exchangeable for shares of Common Stock ("Common Stock Equivalents"),
entitling any person to acquire shares of Common Stock at a price per share less
than the Exercise Price (if the holder of the Common Stock or Common Stock
Equivalent so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise, or due to warrants, options or rights issued in connection with
such issuance, be entitled to receive shares of Common Stock at a price less
than the Exercise Price, such issuance shall be deemed to have occurred for less
than the Exercise Price), then the Exercise Price shall be multiplied by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately prior to the issuance of such Common Stock or such
Common Stock Equivalents plus the number of shares of Common Stock which the
offering price for such shares of Common Stock or Common Stock Equivalents would
purchase at the Exercise Price, and the denominator of which shall be the sum of
the number of shares of Common Stock outstanding immediately prior to such
issuance plus the number of shares of Common Stock so issued or issuable,
provided, that (i) for purposes hereof, all shares of Common Stock that are
issuable upon conversion, exercise or exchange of Common Stock Equivalents shall
be deemed outstanding immediately after the issuance of such Common Stock
Equivalents and (ii) this Section 8 and the adjustments contemplated hereby
shall not apply to shares of Common Stock (and options, warrants or other rights
associated therewith) issued pursuant to (A) employee benefit plans maintained
by the Company or adopted subsequent to the execution of this Warrant, (B) an
Acquisition Agreement executed by and between the Company and Intelligent
Enclosures Corporation, (C) senior credit or debt financing arrangements between
the Company and existing or prospective lenders, or (D) equipment leasing
transactions between the Company and existing or prospective equipment lessors.
Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. However, upon the expiration of any Common Stock
Equivalents the issuance of which resulted in an adjustment in the Exercise
Price pursuant to this Section, if any such Common Stock Equivalents shall
expire and shall not have been exercised, the Exercise Price shall immediately
upon such expiration be recomputed and effective immediately upon such
expiration be increased

<PAGE>   6
                                                                     Exhibit 4.3

to the price which it would have been (but reflecting any other adjustments in
the Exercise Price made pursuant to the provisions of this Section after the
issuance of such Common Stock Equivalents) had the adjustment of the Exercise
Price made upon the issuance of such Common Stock Equivalents been made on the
basis of offering for subscription or purchase only that number of shares of the
Common Stock actually purchased upon the exercise of such Common Stock
Equivalents actually exercised.

                      (e) In case of any (1) merger or consolidation of the
Company with or into another Person, or (2) sale by the Company of more than
one-half of the assets of the Company (on a fair market value basis, as
determined by the Appraiser) in one or a series of related transactions, the
Holder shall have the right thereafter to exercise this Warrant for the shares
of stock and other securities, cash and property receivable upon or deemed to be
held by holders of Common Stock following such merger, consolidation or sale,
and the Holder shall be entitled upon such event or series of related events to
receive such amount of securities, cash and property as the Common Stock for
which this Warrant could have been exercised immediately prior to such merger,
consolidation or sales would have been entitled. The terms of any such merger,
sale or consolidation shall include such terms so as continue to give the Holder
the right to receive the securities, cash and property set forth in this Section
upon any conversion or redemption following such event. This provision shall
similarly apply to successive such events.

                      (f) For the purposes of this Section 8, the following
clauses shall also be applicable:

                           (i) Record Date. In case the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them (A)
to receive a dividend or other distribution payable in Common Stock or in
securities convertible or exchangeable into shares of Common Stock, or (B) to
subscribe for or purchase Common Stock or securities convertible or exchangeable
into shares of Common Stock, then such record date shall be deemed to be the
date of the issue or sale of the shares of Common Stock deemed to have been
issued or sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

                           (ii) Treasury Shares. The number of shares of Common
Stock outstanding at any given time shall not include shares owned or held by or
for the account of the Company, and the disposition of any such shares shall be
considered an issue or sale of Common Stock.

                      (g) All calculations under this Section 8 shall be made to
the nearest cent or the nearest 1/100th of a share, as the case may be.

                      (h) Whenever the Exercise Price is adjusted pursuant to
Section 8(c) above, the Holder, after receipt of the determination by the
Appraiser, shall have the right to select an additional appraiser (which shall
be a nationally recognized accounting firm), in which case the

<PAGE>   7
                                                                     Exhibit 4.3

adjustment shall be equal to the average of the adjustments recommended by each
of the Appraiser and such appraiser. The fees and expenses of the additional
appraiser selected by the Holder shall be paid by the Holder if such additional
appraiser concurs with the ultimate conclusion of the Appraiser. The Holder
shall promptly mail or cause to be mailed to the Company, a notice setting forth
the Exercise Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment. Such adjustment shall become effective
immediately after the record date mentioned above.

                        If:

                                 (i)        the Company shall declare a dividend
                                            (or any other distribution) on its
                                            Common Stock; or

                                 (ii)       the Company shall declare a special
                                            nonrecurring cash dividend on or a
                                            redemption of its Common Stock; or

                                 (iii)      the Company shall authorize the
                                            granting to all holders of the
                                            Common Stock rights or warrants to
                                            subscribe for or purchase any shares
                                            of capital stock of any class or of
                                            any rights; or

                                 (iv)       the approval of any stockholders of
                                            the Company shall be required in
                                            connection with any reclassification
                                            of the Common Stock, any
                                            consolidation or merger to which the
                                            Company is a party, any sale or
                                            transfer of all or substantially all
                                            of the assets of the Company, or any
                                            compulsory share exchange whereby
                                            the Common Stock is converted into
                                            other securities, cash or property;
                                            or

                                 (v)        the Company shall authorize the
                                            voluntary dissolution, liquidation
                                            or winding up of the affairs of the
                                            Company,

then the Company shall cause to be mailed to each Holder at their last addresses
as they shall appear upon the Warrant Register, at least 20 calendar days prior
to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange,

<PAGE>   8
                                                                     Exhibit 4.3

dissolution, liquidation or winding up; provided, however, that the failure to
mail such notice or any defect therein or in the mailing thereof shall not
affect the validity of the corporate action required to be specified in such
notice.

               i. Payment of Exercise Price. The Holder shall pay the Exercise
Price in one of the following manners:

                      (a) Cash Exercise. The Holder may deliver immediately
available funds; or

                      (b) Cashless Exercise. The Holder may surrender this
Warrant to the Company together with a notice of cashless exercise, in which
event the Company shall issue to the Holder the number of Warrant Shares
determined as follows:

                             X = Y [(A-B)/A]
        where:
                             X = the number of Warrant Shares to be issued
                             to the Holder.

                             Y = the number of Warrant Shares with respect to
                             which this Warrant is being exercised.

                             A = the average of the closing sale prices of the
                             Common Stock for the five (5) trading days
                             immediately prior to (but not including) the Date
                             of Exercise.

                             B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have been
commenced, on the issue date.

               j. Certain Exercise Restrictions.

                      (a) A Holder may not exercise this Warrant to the extent
such exercise would result in the Holder, together with any affiliate thereof,
beneficially owning (as determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and the rules
promulgated thereunder) in excess of 4.999% of the then issued and outstanding
shares of Common Stock, including shares issuable upon such exercise and held by
such Holder after application of this Section. Since the Holder will not be
obligated to report to the Company the number of shares of Common Stock it may
hold at the time of an exercise hereunder, unless the exercise at issue would
result in the issuance of shares of Common Stock in excess of 4.999% of the then
outstanding shares of Common Stock without regard to any other shares which

<PAGE>   9
                                                                     Exhibit 4.3

may be beneficially owned by the Holder or an affiliate thereof, the Holder
shall have the authority and obligation to determine whether the restriction
contained in this Section will limit any particular exercise hereunder and to
the extent that the Holder determines that the limitation contained in this
Section applies, the determination of which portion of this Warrant is
exercisable shall be the responsibility and obligation of the Holder. If the
Holder has delivered a Form of Election to Purchase for a number of Warrant
Shares that, without regard to any other shares that the Holder or its
affiliates may beneficially own, would result in the issuance in excess of the
permitted amount hereunder, the Company shall notify the Holder of this fact and
shall honor the exercise for the maximum portion of this Warrant permitted to be
exercised on such Date of Exercise in accordance with the periods described
herein and, at the option of the Holder, either keep the portion of the Warrant
tendered for exercise in excess of the permitted amount hereunder for future
exercises or return such excess portion of the Warrant to the Holder. The
provisions of this Section may be waived by a Holder (but only as to itself and
not to any other Holder) upon not less than 61 days prior notice to the Company.
Other Holders shall be unaffected by any such waiver.

                      (b) A Holder may not exercise this Warrant to the extent
such exercise would result in the Holder, together with any affiliate thereof,
beneficially owning (as determined in accordance with Section 13(d) of the
Exchange Act and the rules promulgated thereunder) in excess of 9.999% of the
then issued and outstanding shares of Common Stock, including shares issuable
upon such exercise and held by such Holder after application of this Section.
Since the Holder will not be obligated to report to the Company the number of
shares of Common Stock it may hold at the time of an exercise hereunder, unless
the exercise at issue would result in the issuance of shares of Common Stock in
excess of 9.999% of the then outstanding shares of Common Stock without regard
to any other shares which may be beneficially owned by the Holder or an
affiliate thereof, the Holder shall have the authority and obligation to
determine whether the restriction contained in this Section will limit any
particular exercise hereunder and to the extent that the Holder determines that
the limitation contained in this Section applies, the determination of which
portion of this Warrant is exercisable shall be the responsibility and
obligation of the Holder. If the Holder has delivered a Form of Election to
Purchase for a number of Warrant Shares that, without regard to any other shares
that the Holder or its affiliates may beneficially own, would result in the
issuance in excess of the permitted amount hereunder, the Company shall notify
the Holder of this fact and shall honor the exercise for the maximum portion of
this Warrant permitted to be exercised on such Date of Exercise in accordance
with the periods described herein and, at the option of the Holder, either keep
the portion of the Warrant tendered for exercise in excess of the permitted
amount hereunder for future exercises or return such excess portion of the
Warrant to the Holder. The provisions of this Section may be waived by a Holder
(but only as to itself and not to any other Holder) upon not less than 61 days
prior notice to the Company. Other Holders shall be unaffected by any such
waiver.

               k. Fractional Shares. The Company shall not be required to issue
or cause to be issued fractional Warrant Shares on the exercise of this Warrant.
The number of full Warrant Shares which shall be issuable upon the exercise of
this Warrant shall be computed on the basis of the aggregate number of Warrant
Shares purchasable on exercise of this Warrant so presented. If any

<PAGE>   10
                                                                     Exhibit 4.3

fraction of a Warrant Share would, except for the provisions of this Section, be
issuable on the exercise of this Warrant, the Company shall pay an amount in
cash equal to the Exercise Price multiplied by such fraction.

               l. Notices. Any and all notices or other communications or
deliveries hereunder shall be in writing and shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this
Section prior to 6.30 p.m. (New York City time) on a business day (with
confirmation of transmission), (ii) the business day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section later than 6:30 p.m. (New
York City time) on any date and earlier than 11:59 p.m. (New York City time) on
such date (with confirmation of transmission), (iii) the business day following
the date of mailing, if sent by a nationally recognized overnight courier
service, or (iv) upon actual receipt by the party to whom such notice is
required to be given. The addresses for such communications shall be: (i) if to
the Company, to 2700 South 900 West, Salt Lake City, Utah 84119, facsimile
number (801) 973-6640, attention Chief Executive Officer, or (ii) if to the
Holder, to the Holder at the address or facsimile number appearing on the
Warrant Register or such other address or facsimile number as the Holder may
provide to the Company in accordance with this Section.

               m. Warrant Agent. The Company shall serve as warrant agent under
this Warrant. Upon thirty (30) days' notice to the Holder, the Company may
appoint a new warrant agent. Any corporation into which the Company or any new
warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new warrant agent shall be a party or any
corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or shareholders services business shall
be a successor warrant agent under this Warrant without any further act. Any
such successor warrant agent shall promptly cause notice of its succession as
warrant agent to be mailed (by first class mail, postage prepaid) to the Holder
at the Holder's last address as shown on the Warrant Register.

               n. Miscellaneous.

                      (a) This Warrant shall be binding on and inure to the
benefit of the parties hereto and their respective successors and assigns. This
Warrant may be amended only in writing signed by the Company and the Holder and
their successors and assigns.

                      (b) Subject to Section 14(a), above, nothing in this
Warrant shall be construed to give to any person or corporation other than the
Company and the Holder any legal or equitable right, remedy or cause under this
Warrant. This Warrant shall inure to the sole and exclusive benefit of the
Company and the Holder.

                      (c) The corporate laws of the State of Utah shall govern
all issues concerning the relative rights of the Company and its stockholders.
All other questions concerning

<PAGE>   11
                                                                     Exhibit 4.3

the construction, validity, enforcement and interpretation of this Warrant shall
be governed by and construed and enforced in accordance with the internal laws
of the State of New York, without regard to the principles of conflicts of law
thereof. The Company and the Holder hereby irrevocably submit to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York,
borough of Manhattan, for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, or that such suit, action or proceeding is
improper. Each of the Company and the Holder hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action
or proceeding by receiving a copy thereof sent to the Company at the address in
effect for notices to it under this instrument and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law.

                      (d) The headings herein are for convenience only, do not
constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

                      (e) In case any one or more of the provisions of this
Warrant shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
                             SIGNATURE PAGE FOLLOWS]

<PAGE>   12
                                                                     Exhibit 4.3

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

                             DAW TECHNOLOGIES, INC.

                             By:
                                --------------------------------------

                             Name:
                                  ------------------------------------

                             Title:
                                   -----------------------------------

<PAGE>   13
                                                                     Exhibit 4.3

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To Daw Technologies, Inc.:

        In accordance with the Warrant enclosed with this Form of Election to
Purchase, the undersigned hereby irrevocably elects to purchase _____________
shares of common stock, $.01 par value per share, of Daw Technologies, Inc. (the
"Common Stock") and , if such Holder is not utilizing the cashless exercise
provisions set forth in this Warrant, encloses herewith $________ in cash,
certified or official bank check or checks, which sum represents the aggregate
Exercise Price (as defined in the Warrant) for the number of shares of Common
Stock to which this Form of Election to Purchase relates, together with any
applicable taxes payable by the undersigned pursuant to the Warrant.

        The undersigned requests that certificates for the shares of Common
Stock issuable upon this exercise be issued in the name of

                                      PLEASE INSERT SOCIAL SECURITY OR
                                      TAX IDENTIFICATION NUMBER

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

--------------------------------------------------------------------------------
                         (Please print name and address)

        If the number of shares of Common Stock issuable upon this exercise
shall not be all of the shares of Common Stock which the undersigned is entitled
to purchase in accordance with the enclosed Warrant, the undersigned requests
that a New Warrant (as defined in the Warrant) evidencing the right to purchase
the shares of Common Stock not issuable pursuant to the exercise evidenced
hereby be issued in the name of and delivered to:

--------------------------------------------------------------------------------
                         (Please print name and address)

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

<PAGE>   14
                                                                     Exhibit 4.3

Dated:         ,              Name of Holder:
      ---------  -----

                                 (Print)
                                        ----------------------------------------
                                 (By:)
                                      ------------------------------------------
                                 (Name:)
                                 (Title:)
                                 (Signature must conform in all respects to
                                 name of holder as specified on the face of the
                                 Warrant)

<PAGE>   15
                               FORM OF ASSIGNMENT

           [To be completed and signed only upon transfer of Warrant]

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto ________________________________ the right represented by the within
Warrant to purchase ____________ shares of Common Stock of Daw Technologies,
Inc. to which the within Warrant relates and appoints ________________ attorney
to transfer said right on the books of Daw Technologies, Inc. with full power of
substitution in the premises.

Dated:

               ,
---------------  ----

                                    ---------------------------------------
                                    (Signature must conform in all respects to
                                    name of holder as specified on the face of
                                    the Warrant)

                                    ---------------------------------------
                                    Address of Transferee

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

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

In the presence of:

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

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