Document:

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                                                                    EXHIBIT 10.7

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE COMPANY COUNSEL)
REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE
SECURITIES LAWS.

                               WARRANT AGREEMENT

             To Purchase Shares of the Series C Preferred Stock of

                          ARGONAUT TECHNOLOGIES, INC.

              Dated as of January 19, 1999 (the "Effective Date")

               in connection with the Loan and Security Agreement

     WHEREAS, Argonaut Technologies, Inc. a Delaware corporation (the "Company")
has entered into a Loan and Security Agreement dated as of July 7, 1998, (the
"Loan Agreement") with Comdisco, Inc., a Delaware corporation (the
"Warrantholder"); and

     WHEREAS, the Company desires to grant to Warrantholder, in consideration
for such Loan Agreement, the right to purchase shares of its Series C Preferred
Stock;

     NOW, THEREFORE, in consideration of the Warrantholder executing and
delivering such Loan Agreement and in consideration of mutual covenants and
agreements contained herein, the Company and Warrantholder agree as follows:

1.   GRANT OF THE RIGHT TO PURCHASE PREFERRED STOCK.

     The Company hereby grants to the Warrantholder, and the Warrantholder is
entitled, upon the terms and subject to the conditions hereinafter set forth,
to subscribe for and purchase, from the Company, 20,000 fully paid and
non-assessable shares of the Company's Series C Preferred Stock ("Preferred
Stock") at a purchase price of $6.00 per share (the "Exercise Price") which is
equivalent to twelve percent (12%) of $1,000,000 divided by the Exercise Price.
Notwithstanding the foregoing, in the event the Company (a) completes (i) an
IPO which results in net cash proceeds to the Company equivalent to, or greater
than, $20,000,000, on or before April 15, 2000; or (ii) an acquisition of the
Company yielding an acquisition price equivalent to or greater than
$100,000,000, and in the case of (i) or (ii) the Company prepays the
outstanding balance of principal and interest under the Loan Agreement within
thirty (30) days of such event; or (b) prepays the outstanding balance of
principal and interest under the Loan Agreement on or before April 15, 2000 in
accordance with the terms of Section 2.6 of the Loan Agreement, then the number
of shares available hereunder shall be adjusted retroactively to equate to nine
percent (9%) of $1,000,000 divided by the Exercise Price. The number and
purchase price of such shares are subject to further adjustment as provided in
Section 8 hereof.

2.   TERM OF THE WARRANT AGREEMENT.

     Except as otherwise provided for herein, the term of this Warrant Agreement
and the right to purchase Preferred Stock as granted herein shall commence on
the Effective Date and shall be exercisable for a period of (i) seven (7) years
or (ii) three (3) years from the effective date of the Company's initial public
offering ("IPO"), whichever is earlier.
<PAGE>   2
3.   EXERCISE OF THE PURCHASE RIGHTS.

     The purchase rights set forth in this Warrant Agreement are exercisable by
the Warrantholder, in whole or in part, at any time, or from time to time,
prior to the expiration of the term set forth in Section 2 above, by tendering
to the Company at its principal office a notice of exercise in the form
attached hereto as Exhibit I (the "Notice of Exercise"), duly completed and
executed, along with this Warrant Agreement. Promptly upon receipt of the
Notice of Exercise, this Warrant Agreement and the payment of the purchase
price in accordance with the terms set forth below, the Company shall issue to
the Warrantholder a certificate for the number of shares of Preferred Stock
purchased.

     The Exercise Price may be paid at the Warrantholder's election either (i)
by cash or check, or (ii) by surrender of the right to purchase such number of
shares equal in value (as determined below) to the aggregate exercise price of
the number of shares to be purchased by the Warrantholder ("Net Issuance"). If
the Warrantholder elects the Net Issuance method, the Company will issue
Preferred Stock in accordance with the following formula:

                    X = Y(A-B)
                        ------
                          A

     Where: X=      the number of shares of Preferred Stock to be issued to the
                    Warrantholder.

                    Y=   the number of shares of Preferred Stock requested to
                         be exercised under this Warrant Agreement.

                    A=   the fair market value of one (1) share of Preferred
                         Stock.

                    B=   the Exercise Price.

     For purposes of the above calculation, current fair market value of
Preferred Stock shall mean with respect to each share of Preferred Stock:

          (i)  if the exercise is in connection with an initial public offering
     of the Company's Common Stock, and if the Company's Registration Statement
     relating to such public offering has been declared effective by the SEC,
     then the fair market value per share shall be the product of (x) the
     Initial "Price to Public" specified in the final prospectus with respect to
     the offering and (y) the number of shares of Common Stock into which each
     share of Preferred Stock is convertible at the time of such exercise;

          (ii) if this Warrant is exercised after, and not in connection with
     the Company's initial public offering, and:

               (a)  if the Company's Common Stock is traded on a securities
          exchange, the fair market value shall be deemed to be the product of
          (x) the average of the closing prices over a twenty-one (21) day
          period ending three days before the day the current fair market value
          of the securities is being determined and (y) the number of shares of
          Common Stock into which each share of Preferred Stock is convertible
          at the time of such exercise; or

               (b)  if the Company's Common Stock is actively traded
          over-the-counter, the fair market value shall be deemed to be the
          product of (x) the average of the closing bid and asked prices quoted
          on the Nasdaq National Market System (or similar system) over the
          twenty-one (21) day period ending three days before the day the
          current fair market value of the securities is being determined and
          (y) the number of shares of Common Stock into which each share of
          Preferred Stock is convertible at the time of such exercise;

          (iii) if at any time the Common Stock is not listed on any securities
     exchange or quoted in the Nasdaq National Market System or the
     over-the-counter market, the current fair market value of Preferred Stock
     shall be the product of (x) the highest price per share which the Company
     could obtain from a willing buyer (not a current employee or director) for
     shares of Common Stock sold by the Company, from authorized but unissued
     shares, as determined in good faith by its Board of Directors and (y) the
     number of shares of Common Stock into which each share of Preferred Stock
     is convertible at the time of such

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     exercise, unless the exercise is in connection with a merger, acquisition
     or other consolidation of the Company pursuant to which the Company is not
     the surviving party, in which case the fair market value of Preferred Stock
     shall be deemed to be the value received by the holders of the Company's
     Preferred Stock on a common equivalent basis pursuant to such merger or
     acquisition.

     Upon partial exercise by either cash or Net Issuance, the Company shall
promptly issue an amended Warrant Agreement representing the remaining number
of shares purchasable hereunder. All other terms and conditions of such amended
Warrant Agreement shall be identical to those contained herein, including, but
not limited to the Effective Date hereof.

4.   RESERVATION OF SHARES.

     (a)  Authorization and Reservation of Shares. During the term of this
Warrant Agreement, the Company will at all times have authorized and reserved a
sufficient number of shares of its Preferred Stock to provide for the exercise
of the rights to purchase Preferred Stock as provided for herein.

     (b)  Registration or Listing. If any shares of Preferred Stock required to
be reserved for purposes of the exercise of this Warrant Agreement hereunder
require registration with or approval of any governmental authority under any
Federal or State law (other than any registration under the Securities Act of
1933, as amended ("1933 Act"), as then in effect, or any similar Federal
statute then enforced, or any state securities law, required by reason of any
transfer involved in such conversion), or listing on any domestic securities
exchange, before such shares may be issued upon conversion, the Company will,
at its expense and as expeditiously as possible, use its best efforts to cause
such shares to be duly registered, listed or approved for listing on such
domestic securities exchange, as the case may be.

5.   NO FRACTIONAL SHARES OR SCRIP.

     No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of the Warrantholder's rights to purchase Preferred
Stock, but in lieu of such fractional shares the Company shall make a cash
payment therefor upon the basis of the Exercise Price then in effect.

6.   NO RIGHTS AS SHAREHOLDER.

     This Warrant Agreement does not entitle the Warrantholder to any voting
rights or other rights as a shareholder of the Company prior to the exercise of
the Warrantholder's rights to purchase Preferred Stock as provided for herein.

7.   WARRANTHOLDER REGISTRY.

     The Company shall maintain a registry showing the name and address of the
registered holder of this Warrant Agreement.

8.   ADJUSTMENT RIGHTS.

     The purchase price per share and the number of shares of Preferred Stock
purchasable hereunder are subject to adjustment, as follows:

     (a)  Merger and Sale of Assets. If at any time there shall be a capital
reorganization of the shares of the Company's stock (other than a combination,
reclassification, exchange or subdivision of shares otherwise provided for
herein), or a merger or consolidation of the Company with or into another
corporation when the Company is not the surviving corporation, or the sale of
all or substantially all of the Company's properties and assets to any other
person (hereinafter referred to as a "Merger Event"), then, as a part of such
Merger Event, lawful provision shall be made so that the Warrantholder shall
thereafter be entitled to receive, upon exercise of its rights to purchase
Preferred Stock, the number of shares of Preferred Stock or other securities of
the successor corporation resulting from such Merger Event, to which a holder
of the Preferred Stock deliverable upon exercise of the right to purchase
Preferred Stock hereunder would have been entitled in such Merger Event if the
right to purchase such Preferred Stock hereunder had been exercised immediately
prior to the Merger Event. In any such case, appropriate adjustment (as
determined in good faith by the Company's Board of Directors) shall be made in
the application of the provisions of this Warrant Agreement with respect to the
rights and interest of the Warrantholder after the Merger Event to the end that
the provisions of this Warrant Agreement (including adjustments of the

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Exercise Price and number of shares of Preferred Stock purchasable) shall be
applicable to the greatest extent reasonably possible.

     (b)  Reclassification of Shares. If the Company at any time shall, by
combination, reclassification, exchange or subdivision of securities or
otherwise, change any of the securities as to which purchase rights under this
Warrant Agreement exist into the same or a different number of securities of
any other class or classes, this Warrant Agreement shall thereafter represent
the right to acquire such number and kind of securities as would have been
issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant Agreement immediately prior
to such combination, reclassification, exchange, subdivision or other change.

     (c)  Subdivision or Combination of Shares. If the Company at any time
shall combine or subdivide its Preferred Stock, the Exercise Price shall be
proportionately decreased in the case of a subdivision, or proportionately
increased in the case of a combination.

     (d)  Antidilution Rights. The Preferred Stock purchasable hereunder shall
have the benefit of the same antidilution rights applicable to such Preferred
Stock as designated in the Company's Certificate of Incorporation, as such may
be amended from time to time, and the Company shall provide Warrantholder with
all notices and information at the times and to the extent it is required to do
so to the holders of such Preferred Stock.

     (e)  Notice of Adjustments. If: (i) the Company shall declare any dividend
or distribution upon its stock, whether in cash, property, stock or other
securities; (ii) the Company shall offer for subscription prorata to the
holders of any class of its Preferred or other convertible stock any additional
shares of stock of any class or other rights; (iii) there shall be any Merger
Event; (iv) there shall be any voluntary dissolution, liquidation or winding up
of the Company; then, in connection with each such event, the Company shall
send to the Warrantholder: (A) at least twenty (20) 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, distribution, subscription rights (specifying the date
on which the holders of Preferred Stock shall be entitled thereto) or for
determining rights to vote in respect of such Merger Event, dissolution,
liquidation or winding up; and (B) in the case of any such Merger Event,
dissolution, liquidation or winding up, at least twenty (20) days' prior
written notice of the date when the same shall take place (and specifying the
date on which the holders of Preferred Stock shall be entitled to exchange
their Preferred Stock for securities or other property deliverable upon such
Merger Event, dissolution, liquidation or winding up).

     Each such written notice shall set forth, in reasonable detail, (i) the
event requiring the adjustment, (ii) the amount of the adjustment, (iii) the
method by which such adjustment was calculated, (iv) the Exercise Price, and
(v) the number of shares subject to purchase hereunder after giving effect to
such adjustment, and shall be given by first class mail, postage prepaid,
addressed to the Warrantholder, at the address as shown on the books of the
Company.

     (f)  Timely Notice. Failure to timely provide such notice required by
subsection (e) above shall entitle Warrantholder to retain the benefit of the
applicable notice period notwithstanding anything to the contrary contained in
any insufficient notice received by Warrantholder.

9.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY.

     (a)  Reservation of Preferred Stock. The Preferred Stock issuable upon
exercise of the Warrantholder's rights has been duly and validly reserved and,
when issued in accordance with the provisions of this Warrant Agreement, will
be validly issued, fully paid and non-assessable, and will be free of any
taxes, liens, charges or encumbrances of any nature whatsoever; provided,
however, that the Preferred Stock issuable pursuant to this Warrant Agreement
may be subject to restrictions on transfer under state and/or Federal securities
laws. The Company has made available to the Warrantholder true, correct and
complete copies of its Certificate of Incorporation (the "Charter") and Bylaws,
as amended. The issuance of certificates for shares of Preferred Stock upon
exercise of the Warrant Agreement shall be made without charge to the
Warrantholder for any issuance tax in respect thereof, or other cost incurred
by the Company in connection with such exercise and the related issuance of
shares of Preferred Stock; provided that the Company shall not be required to
pay any tax which may be payable in respect of any transfer involved and the
issuance and delivery of any certificate in a name other than that of the
Warrantholder.

     (b)  Due Authority. The execution and delivery by the Company of this
Warrant Agreement and the performance of all obligations of the Company
hereunder, including the issuance to Warrantholder of the right to
<PAGE>   5
acquire the shares of Preferred Stock set forth in Section 1, have been duly
authorized by all necessary corporate action on the part of the Company, and
the Loan Agreement and this Warrant Agreement are not inconsistent with the
Company's charter or Bylaws, do not contravene any law or governmental rule,
regulation or order applicable to it, do not and will not contravene any
provision of, or constitute a default under, any indenture, mortgage, contract
or other instrument to which it is a party or by which it is bound, and the Loan
Agreement and this Warrant Agreement constitute legal, valid and binding
agreements of the Company, enforceable in accordance with their respective terms
subject only to bankruptcy, insolvency or other similar laws affecting the
enforceability of the rights of creditors generally and the general principles
of equity.

     (c)  Consents and Approvals. No consent or approval of, giving of notice
to, registration with, or taking of any other action in respect of any state,
Federal or other governmental authority or agency is required with respect to
the execution, delivery and performance by the Company of its obligations under
this Warrant Agreement, except for the filing of notices pursuant to Regulation
D under the 1933 Act and any filing required by applicable state securities
law, which filings will be effective by the time required thereby.

     (d)  Issued Securities. All issued and outstanding shares of Common Stock,
Preferred stock or any other securities of the Company have been duly authorized
and validly issued and are fully paid and nonassessable. All outstanding shares
of Common Stock, Preferred Stock and any other securities were issued in full
compliance with all Federal and state securities laws. In addition:

          (i)  The authorized capital stock of the Company consists of
     26,800,000 shares of Common Stock and 20,800,000 shares of preferred stock,
     of which 5,000,000 are designated as Series A Preferred Stock, 5,000,000
     shares are designated Series A-1 Preferred Stock, 3,000,000 shares are
     designated Series B Preferred Stock, 3,000,000 shares are designated Series
     B-1 Preferred Stock, 1,600,000 shares are designated Series C Preferred
     Stock, and 1,600,000 shares are designated Series C-1 Preferred Stock. The
     issued and outstanding stock of the Company consists 2,299,937 shares of
     Common Stock, 4,627,500 shares of Series A Preferred Stock, no shares of
     Series A-1 Preferred Stock, 2,923,073 shares of Series B Preferred Stock,
     no shares of Series B-1 Preferred Stock, 1,180,000 shares of Series C
     Preferred Stock and no shares of Series C-1 Preferred Stock. The Series A
     Preferred, Series A-1 Preferred, Series B Preferred, Series B-1 Preferred,
     Series C Preferred, and Series C-1 Preferred shall have the rights,
     preferences, privileges and restrictions set forth in the Charter.

          (ii) The Company has reserved 2,435,308 shares of its Common Stock for
     issuance to officers, directors, employees, sales representatives and
     consultants of the Company pursuant to the Company's 1995 Incentive Stock
     Plan. There are stock options outstanding for the purchase of 1,668,029
     shares of Common Stock. There are also warrants outstanding for the
     purchase of 50,000 shares of Common Stock and 71,665 of Series C Preferred
     Stock. Except as referenced herein, there are no options, warrants,
     conversion privileges or other rights presently outstanding to purchase or
     otherwise acquire any authorized but unissued shares of the capital stock
     or other securities of the Company.

     (e)  Insurance. The Company has in full force and effect insurance
policies, with extended coverage insuring the Company and its property and
business against such losses and risks, and in such amounts, as are customary
for corporations engaged in a similar business and similarly situated and as
otherwise may be required pursuant to the terms of any other contract or
agreement.

     (f)  Exempt Transaction. Subject to the accuracy of the Warrantholder's
representations in Section 10 hereof, the issuance of the Preferred Stock upon
exercise of the Warrantholder's right to purchase such Preferred Stock will
constitute a transaction exempt from (i) the registration requirements of
Section 5 of the 1933 Act, in reliance upon Section 4(2) thereof, and (ii) the
qualification requirements of the applicable state securities laws.

     (g)  Compliance with Rule 144. At the written request of the Warrantholder,
who proposes to sell Preferred Stock issuable upon the exercise of the Warrant
in compliance with Rule 144 promulgated by the Securities and Exchange
Commission under the 1933 Act, the Company shall furnish to the Warrantholder,
within ten days after receipt of such request, a written statement confirming
the Company's compliance with the filing requirements of the Securities and
Exchange Commission as set forth in such Rule as then applicable to the
Company, as such Rule may be amended from time to time.

<PAGE>   6
10.  REPRESENTATIONS AND COVENANTS OF THE WARRANTHOLDER.

     This Warrant Agreement has been entered into by the Company in reliance
upon the following representations and covenants of the Warrantholder which by
its execution hereof the Warrantholder hereby confirms:

     (a)  Investment Purpose. The right to acquire Preferred Stock or the
Preferred Stock issuable upon exercise of the Warrantholder's rights contained
herein will be acquired for investment and not with a view to the sale or
distribution of any part thereof, and the Warrantholder has no present
intention of selling or engaging in any public distribution of the same except
pursuant to a registration or exemption.

     (b)  Private Issue. The Warrantholder understands (i) that the Preferred
Stock issuable upon exercise of this Warrant is not registered under the 1933
Act or qualified under applicable state securities laws on the ground that the
issuance contemplated by this Warrant Agreement will be exempt from the
registration and qualifications requirements thereof, and (ii) that the
Company's reliance on such exemption is predicated on the representations set
forth in this Section 10.

     (c)  Disposition of Warrantholder's Rights. In no event will the
Warrantholder make a disposition of any of its rights to acquire Preferred
Stock or Preferred Stock issuable upon exercise of such rights unless and until
(i) it shall have notified the Company of the proposed disposition, and (ii) if
requested by the Company, it shall have furnished the Company with an opinion
of counsel (which counsel may either be inside or outside counsel to the
Warrantholder) satisfactory to the Company and its counsel to the effect that
(A) appropriate action necessary for compliance with the 1933 Act has been
taken, or (B) an exemption from the registration requirements of the 1933 Act
is available. Notwithstanding the foregoing, the restrictions imposed upon the
transferability of any of its rights to acquire Preferred Stock or Preferred
Stock issuable on the exercise of such rights do not apply to transfers from
the beneficial owner of any of the aforementioned securities to its nominee
or from such nominee to its beneficial owner, and shall terminate as to any
particular share of Preferred Stock when (1) such security shall have been
effectively registered under the 1933 Act and sold by the holder thereof in
accordance with such registration or (2) such security shall have been sold
without registration in compliance with Rule 144 under the 1993 Act, or (3) a
letter shall have been issued to the Warrantholder at its request by the staff
of the Securities and Exchange Commission or a ruling shall have been issued to
the Warrantholder at its request by such Commission stating that no action shall
be recommended by such staff or taken by such Commission, as the case may be, if
such security is transferred without registration under the 1933 Act in
accordance with the conditions set forth in such letter or ruling and such
letter or ruling specifics that no subsequent restrictions on transfer are
required. Whenever the restrictions imposed hereunder shall terminate, as
hereinabove provided, the Warrantholder or holder of a share of Preferred Stock
then outstanding as to which such restrictions have terminated shall be
entitled to receive from the Company, without expense to such holder, one or
more new certificates for the Warrant or for such shares of Preferred Stock not
bearing any restrictive legend.

     (d) Financial Risk. The Warrantholder has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment, and has the ability to bear the economic risks of its
investment.

     (e) Risk of No Registration. The Warrantholder understands that if the
Company does not register with the Securities and Exchange Commission pursuant
to Section 12 of the 1934 Act (the "!934 Act"), or file reports pursuant to
Section 15(d), of the 1934 Act", or if a registration statement covering the
securities under the 1933 Act is not in effect when it desires to sell (i) the
rights to purchase Preferred Stock pursuant to this Warrant Agreement, or (ii)
the Preferred Stock issuable upon exercise of the rights to purchase, it may be
required to hold such securities for an indefinite period. The Warrantholder
also understands that any sale of its rights of the Warrantholder to purchase
Preferred Stock or Preferred Stock which might be made by it in reliance upon
Rule 144 under the 1933 Act may be made only in accordance with the terms and
conditions of that Rule.

     (f) Accredited Investor. Warrantholder is an "accredited investor" within
the meaning of the Securities and Exchange Rule 501 of Regulation D, as
presently in effect.

<PAGE>   7
11.  TRANSFERS.

     Subject to the terms and conditions contained in Section 10 hereof, this
Warrant Agreement and all rights hereunder are transferable in whole or in part
by the Warrantholder and any successor transferee, provided, however, in no
event shall the number of transfers of the rights and interests in all of the
Warrants exceed three (3) transfers. The transfer shall be recorded on the books
of the Company upon receipt by the Company of a notice of transfer in the form
attached hereto as Exhibit III (the "Transfer Notice"), at its principal offices
and the payment to the Company of all transfer taxes and other governmental
charges imposed on such transfer.

12.  MISCELLANEOUS.

     (a)  Effective Date. The provisions of this Warrant Agreement shall be
construed and shall be given effect in all respects as if it had been executed
and delivered by the Company on the date hereof. This Warrant Agreement shall
be binding upon any successors or assigns of the Company.

     (b)  Attorney's Fees. In any litigation, arbitration or court proceeding
between the Company and the Warrantholder relating hereto, the prevailing party
shall be entitled to attorneys' fees and expenses and all costs of proceedings
incurred in enforcing this Warrant Agreement.

     (c)  Governing Law. This Warrant Agreement shall be governed by and
construed for all purposes under and in accordance with the laws of the State
of Illinois.

     (d)  Counterparts. This Warrant Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     (e)  Notices. Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon personal delivery, facsimile
transmission (provided that the original is sent by personal delivery or mail
as hereinafter set forth) or seven (7) days after deposit in the United States
mail, by registered or certified mail, addressed (i) to the Warrantholder at
6111 North River Road, Rosemont, Illinois 60018, attention: James Labe, Venture
Group, cc: Legal Department, attention: General Counsel, (and/or, if by
facsimile, (847) 518-5465 and (847) 518-5088, an (ii) to the Company at 887
Industrial Road, Suite G, San Carlos, CA 90470 (and/or if by facsimile, (650)
598-1358 or at such other address as any such party may subsequently designate
by written notice to the other party.

     (f)  Remedies. In the event of any default hereunder, the non-defaulting
party may proceed to protect and enforce its rights either by suit in equity
and/or by action at law, including but not limited to an action for damages as
a result of any such default, and/or an action for specific performance for any
default where Warrantholder will not have an adequate remedy at law and where
damages will not be readily ascertainable. The Company expressly agrees that it
shall not oppose an application by the Warrantholder or any other person
entitled to the benefit of this Agreement requiring specific performance of any
or all provisions hereof or enjoining the Company from continuing to commit any
such breach of this Agreement.

     (g)  No Impairment of Rights. The Company will not, by amendment of its
Charter or through any other means, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at all times in good
faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate in order to protect the rights
of the Warrantholder against impairment.

     (h)  Survival. The representations, warranties, covenants and conditions
of the respective parties contained herein or made pursuant to this Warrant
Agreement shall survive the execution and delivery of this Warrant Agreement.

     (i)  Severability. In the event any one or more of the provisions of this
Warrant Agreement shall for any reason be held invalid, illegal or
unenforceable, the remaining provisions of this Warrant Agreement shall be
unimpaired, and the invalid, illegal or unenforceable provision shall be
replaced by a mutually acceptable valid, legal and enforceable provision, which
comes closest to the intention of the parties underlying the invalid, illegal or
unenforceable provision.

<PAGE>   8
     (j) Amendments. Any provision of this Warrant Agreement may be amended by a
written instrument signed by the Company and by the Warrantholder.

     (k) Additional Documents. The Company, upon execution of this Warrant
Agreement, shall provide the Warrantholder with certified resolutions with
respect to the representations, warranties and covenants set forth in
subparagraphs (a) through (d), (f) and (g) of Section 9 above. The Company
shall also supply such other documents as the Warrantholder may from time to
time reasonably request.

     IN WITNESS WHEREOF, the parties hereto have caused this Warrant Agreement
to be executed by its officers thereunto duly authorized as of the Effective
Date.

               COMPANY: ARGONAUT TECHNOLOGIES, INC.

               By: /s/ D. P. BINKLEY
                   --------------------------------

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

               WARRANTHOLDER: COMDISCO, INC.

               By: /s/ JAMES LABE
                   --------------------------------
                   James Labe, President

               Title: Comdisco Ventures Division
                   --------------------------------
<PAGE>   9
                                   EXHIBIT I

                               NOTICE OF EXERCISE

TO:  _______________________

(1)  The undersigned Warrantholder hereby elects to purchase _______ shares of
     the Series _____ Preferred Stock of _______________, pursuant to the terms
     of the Warrant Agreement dated the _______ day of ____________, 19__ (the
     "Warrant Agreement") between ________________________ and the
     Warrantholder, and tenders herewith payment of the purchase price for such
     shares in full, together with all applicable transfer taxes, if any, as set
     forth below:

          (a)  by cash or check __________

                       or

          (b)  by Net Issuance as defined in the Warrant Agreement __________

(2)  In exercising its rights to purchase the Series _____ Preferred Stock of
     __________________________, the undersigned hereby confirms and
     acknowledges the investment representations and warranties made in Section
     10 of the Warrant Agreement.

(3)  Please issue a certificate or certificates representing said shares of
     Series _____ Preferred Stock in the name of the undersigned or in such
     other name as is specified below.

________________________
(Name)

________________________
(Address)

WARRANTHOLDER: COMDISCO, INC.

By:    ______________________

Title: ______________________

Date:  ______________________
<PAGE>   10
                                   EXHIBIT II

                                TRANSFER NOTICE

(To transfer or assign the foregoing Warrant Agreement execute this form and
supply required information. Do not use this form to purchase shares.)

     FOR VALUE RECEIVED, the foregoing Warrant Agreement and all rights
evidenced thereby are hereby transferred and assigned to

__________________________________________________
(Please Print)

whose address is _________________________________

__________________________________________________

          Dated: _________________________________

          Holder's Signature: ____________________

          Holder's Address: ______________________

          ________________________________________

Signature Guaranteed: ____________________________

NOTE: The signature to this Transfer Notice must correspond with the name as it
appears on the face of the Warrant Agreement, without alteration or enlargement
or any change whatever. Officers of corporations and those acting in a fiduciary
or other representative capacity should file proper evidence of authority to
assign the foregoing Warrant Agreement.<PAGE>   1
                                                                    EXHIBIT 10.8

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE
144 UNDER SAID ACT OR WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER, SATISFACTORY TO THE COMPANY,
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION
LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

                   WARRANT TO PURCHASE SHARES OF COMMON STOCK

                                 April 17, 1995

THIS CERTIFIES THAT, for value received, Lease Management Services, Inc.,
("Holder") is entitled to subscribe for and purchase Fifty Thousand (50,000)
shares of the fully paid and nonassessable Common Stock ("the Shares") of
Argonaut Technologies, Inc., a Delaware corporation (the "Company"), at the
Warrant Price (as hereinafter defined), subject to the provisions and upon the
terms and conditions hereinafter set forth. As used herein, the term "Common
Stock" shall mean the Company's presently authorized Common Stock, and any
stock into which such Common Stock may hereafter be exchanged.

1.   Warrant Price. The Warrant Price shall initially be one and 20/100 dollars
($1.20) per share, subject to adjustment as provided in Section 7 below.

2.   Conditions to Exercise. The purchase right represented by this Warrant may
be exercised at any time, or from time to time, in whole or in part during the
term commencing on the date hereof and ending on the earlier of:

     (a)  5:00 P.M. California time on the sixth annual anniversary of this
     Warrant Agreement; or

     (b)  5:00 P.M. California time on the day prior to the effectiveness of a
     registration statement filed in a bona fide firm commitment underwriting
     under the Securities Act of 1933, as amended, covering any of the
     Company's securities (as that term is defined under the Securities Act of
     1933, as then in effect) with aggregate gross proceeds to the Company, at
     the public offering price, of at least $7,500,000; provided that the
     Company shall notify the registered Holder of this Warrant of the proposed
     registration of its securities on the date that the registration statement
     is filed, but in any event at least 30 days prior to the effectiveness of
     such registration, such notice to set forth the proposed date of
     effectiveness of the subject registration statement; or

     (c)  the effective date of the merger of the Company with or into, the
     consolidation of the Company with, or the sale by the Company of all or
     substantially all of its assets to another corporation or other entity
     (other than such a transaction wherein the shareholders of the Company
     retain or obtain a majority of the voting capital stock of the surviving,
     resulting, or purchasing corporation); provided that the Company shall
     notify the registered Holder of this Warrant of the proposed effective
     date of the merger, consolidation, or sale at least 60 days prior to the
     effectiveness thereof.

     In the event that, although the Company shall have given notice of a
     transaction pursuant to subparagraph (b) or (c) hereof, the transaction
     does not close on

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LMSI/Argonaut Technologies, Inc. Warrant
Page 2 of 7

     approximately the day specified by the Company, unless otherwise elected by
     the Holder any exercise of the Warrant subsequent to the giving of such
     notice shall be rescinded and the Warrant shall again be exercisable until
     terminated in accordance with this Paragraph 2.

3.   Method of Exercise; Payment; Issuance of Shares; Issuance of New Warrant.

(a) Cash Exercise. Subject to Section 2 hereof, the purchase right represented
by this Warrant may be exercised by the Holder hereof, in whole or in part,by
the surrender of this Warrant (with a duly executed Notice of Exercise in the
form attached hereto) at the principal office of the Company (as set forth in
Section 17 below) and by payment to the Company, by check, of an amount equal to
the then applicable Warrant Price per share multiplied by the number of shares
then being purchased. In the event of any exercise of the rights represented by
this Warrant, certificates for the shares of stock so purchased shall be in the
name of, and delivered to, the Holder hereof, or as such Holder may direct
(subject to the terms of transfer contained herein and upon payment by such
Holder hereof of any applicable transfer taxes). Such delivery shall be made
within 10 days after exercise of the Warrant and at the Company's expense and,
unless this Warrant has been fully exercised or expired, a new Warrant having
terms and conditions substantially identical to this Warrant and representing
the portion of the Shares, if any, with respect to which this Warrant shall not
have been exercised, shall also be issued to the Holder hereof within 10 days
after exercise of the Warrant.

(b) Net Issue Exercise. In lieu of exercising this Warrant pursuant to Section
3(a), Holder may elect to receive shares equal to the value of this Warrant (or
of any portion thereof remaining unexercised) by surrender of this Warrant at
the principal office of the Company together with notice of such election, in
which event the Company shall issue to Holder the number of shares of the
Company's Common Stock computed using the following formula:

     X = Y(A-B)
         ------
         A

     Where X = the number of shares of Common Stock to be issued to Holder.

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

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

     B = Warrant exercise price (as adjusted to the date of such calculation).

(c)  Fair Market Value. For purposes of this Section 3, Fair Market Value of one
share of the Company's Common Stock shall mean:

     (i)  In the event of an Initial Public Offering pursuant to Section 2(b),
     the per share Fair Market Value for the Common Stock shall be the Offering
     Price at which the underwriters sell Common Stock to the public; or

     (ii) If the Common Stock is traded on NASDAQ or Over-The-Counter or on an
     exchange, the per share Fair Market Value for the Common Stock will be the
     average of the closing bid and asked prices of the Common Stock quoted in
     the Over-The-Counter Market Summary or the closing price quoted on any
     exchange on which the Common Stock is listed, whichever is applicable, as
     published in the Western Edition

                                       2
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LMSI / Argonaut Technologies, Inc. Warrant
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     of The Wall Street Journal for the ten (10) trading days prior to the date
     of determination of Fair Market Value; or

     (iii) If the Company shall be subject to a merger, acquisition or other
     consolidation in which the Company is not the surviving entity, pursuant to
     Section 2(c), the per share Fair Market Value for the Common Stock shall be
     the value received per share of Common Stock by all Holders of the Common
     Stock as determined by the Board of Directors; or

     (iv) In any other instance, the per share Fair Market Value for the Common
     Stock shall be as determined by the Board of Directors in its reasonable
     business judgment.

     In the event of 3(c)(iii) or 3(c)(iv), above, the Company's Board of
     Directors shall prepare a certificate, to be signed by an authorized
     Officer of the Company, setting forth in reasonable detail the basis for
     and method of determination of the per share Fair Market Value of the
     Common Stock. The Board will also certify to the Holder that this per share
     Fair Market Value will be applicable to all holders of the Company's Common
     Stock. Such certification must be made to Holder at least thirty (30)
     business days prior to the proposed effective date of the merger,
     consolidation, sale, or other triggering event as defined in 3(c)(iii) or
     3(c)(iv).

(d)  Automatic Exercise. To the extent this Warrant is not previously
exercised, it shall be automatically exercised in accordance with Sections 3(b)
and 3(c) hereof (even if not surrendered) immediately before; (i) its
expiration, (ii) the consummation of a Public Offering of the Company's Common
Stock pursuant to Section 2(b), or (iii) the consummation of any consolidation
or merger of the Company, or any sale or transfer of a majority of a company's
assets pursuant to Section 2(c).

4.   Representations and Warranties of Holder and Restrictions on Transfer
Imposed by the Securities Act of 1933.

(a)  Representations and Warranties by Holder. The Holder represents and
warrants to the Company with respect to this purchase as follows:

     (i)  The Holder has substantial experience in evaluating and investing in
     private placement transactions of securities of companies similar to the
     Company so that the Holder is capable of evaluating the merits and risks of
     its investment in the Company and has the capacity to protect its
     interests.

     (ii) The Holder is acquiring the Warrant and the Shares of Common Stock
     issuable upon exercise of the Warrant (collectively the "Securities") for
     investment for its own account and not with a view to, or for resale in
     connection with, any distribution thereof. The Holder understands that the
     Securities have not been registered under the Act by reason of a specific
     exemption from the registration provisions of the Act which depends upon,
     among other things, the bona fide nature of the investment intent as
     expressed herein. In this connection, the Holder understands that, in the
     view of the Securities and Exchange Commission (the "SEC"), the statutory
     basis for such exemption may be unavailable if this representation was
     predicated solely upon a present intention to hold the Securities for the
     minimum capital gains period specified under tax statutes, for a deferred
     sale, for or until an increase or decrease in the market price of the
     Securities or for a period of one year or any other fixed period in the
     future.

                                       3

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LMSI / Argonaut Technologies, Inc. Warrant
Page 4 of 7

     (iii) The Holder acknowledges that the Securities must be held indefinitely
     unless subsequently registered under the Act or an exemption from such
     registration is available. The Holder is aware of the provisions of Rule
     144 promulgated under the Act ("Rule 144") which permits limited resale of
     securities purchased in a private placement subject to the satisfaction of
     certain conditions, including, in case the securities have been held for
     less than three years, the existence of a public market for the shares, the
     availability of certain public information about the Company, the resale
     occurring not less than two years after a party has purchased and paid for
     the security to be sold, the sale being through a "broker's transaction" or
     in a transaction directly with a "market maker" (as provided by Rule
     144(f)) and the number of shares or other securities being sold during any
     three-month period not exceeding specified limitations.

     (iv) The Holder further understands that at the time the Holder wishes to
     sell the Securities there may be no public market upon which such a sale
     may be effected, and that even if such a public market exists, the Company
     may not be satisfying the current public information requirements of Rule
     144, and that in such event, the Holder may be precluded from selling the
     Securities under Rule 144 unless a) a three-year minimum holding period has
     been satisfied and b) the Holder was not at the time of the sale nor at any
     time during the three-month period prior to such sale an affiliate of the
     Company.

     (v) The Holder has had an opportunity to discuss the Company's business,
     management and financial affairs with its management and an opportunity to
     review the Company's facilities. The Holder understands that such
     discussions, as well as the written information issued by the Company, were
     intended to described the aspects of the Company's business and prospects
     which it believes to be material but were not necessarily a thorough or
     exhaustive description.

(b) Legends. Each certificate representing the Securities shall be endorsed
with the following legend:

          THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933 AND MAY NOT BE TRANSFERRED UNLESS COVERED BY AN EFFECTIVE
          REGISTRATION STATEMENT UNDER SAID ACT, A "NO ACTION" LETTER FROM THE
          SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH TRANSFER, A
          TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE SECURITIES AND
          EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE
          ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH
          REGISTRATION.

The Company need not register a transfer of Securities unless the conditions
specified in the foregoing legend are satisfied. The Company may also instruct
its transfer agent not to register the transfer of any of the Shares unless the
conditions specified in the foregoing legend are satisfied.

(c) Removal of Legend and Transfer Restrictions. The legend relating to the Act
endorsed on a certificate pursuant to paragraph 4(b) of this Warrant and the
stop transfer instructions with respect to the Securities represented by such
certificate shall be removed and the Company shall issue a certificate without
such legend to the Holder of the Securities if (i) the Securities are
registered under the Act and a prospectus meeting the requirements of Section
10 of the Act is available or (ii) the Holder provides to the Company an
opinion of counsel for the Holder reasonably satisfactory to the Company, or a
no-action letter or interpretive opinion of the staff of the SEC reasonably
satisfactory to the Company, to the effect that public sale,

                                       4
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LMSI / Argonaut Technologies, Inc. Warrant
Page 5 of 7

transfer or assignment of the Securities may be without registration and
without compliance with any restriction such as Rule 144.

5. Condition of Transfer or Exercise of Warrant. It shall be a condition to any
transfer or exercise of this Warrant that at the time of such transfer or
exercise, the Holder shall provide the Company with a representation in writing
that the Holder or transferee is acquiring this Warrant and the shares of Common
Stock to be issued upon exercise, for investment purposes only and not with a
view to any sale or distribution, or a statement of pertinent facts covering any
proposed distribution. As a further condition to any transfer of this Warrant or
any or all of the shares of Common Stock issuable upon exercise of this Warrant,
other than a transfer registered under the Act, the Company must have received a
legal opinion, in form and substance satisfactory to the Company and its
counsel, reciting the pertinent circumstances surrounding the proposed transfer
and stating that such transfer is exempt from the registration and prospectus
delivery requirements of the Act. Each certificate evidencing the shares issued
upon exercise of the Warrant or upon any transfer of the shares (other than a
transfer registered under the Act or any subsequent transfer of shares so
registered) shall, at the Company's option, contain a legend in form and
substance satisfactory to the Company and its counsel, restricting the transfer
of the shares to sales or other dispositions exempt from the requirements of the
Act.

     As further conditions to each transfer, the transferee shall receive and
accept a Warrant, of like tenor and date, executed by the Company.

6. Stock Fully Paid; Reservation of Shares. All Shares which may be issued upon
the exercise of the rights represented by this Warrant will, upon issuance, be
fully paid and nonassessable, and free from all taxes, liens, and charges with
respect to the issue thereof. During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times
have authorized, and reserved for issuance upon exercise of the purchase rights
evidenced by this Warrant, a sufficient number of shares of its Common Stock to
provide for the exercise of the rights represented by this Warrant.

7. Adjustment for Certain Events. In the event of changes in the outstanding
Common Stock by reason of stock dividends, split-ups, recapitalizations,
reclassifications, mergers, consolidations, combinations or exchanges of
shares, separations, reorganizations, liquidations, or the like, the number and
class of shares available under the Warrant in the aggregate and the Warrant
Price shall be correspondingly adjusted, as appropriate, by the Board of
Directors of the Company. The adjustment shall be such as will give the Holder
of this Warrant upon exercise for the aggregate Warrant Price the total number,
class and kind of shares as it would have owned had the Warrant been exercised
prior to the event and had it continued to hold such shares until after the
event requiring adjustment.

8. Notice of Adjustments. Whenever any Warrant Price shall be adjusted pursuant
to Section 7 hereof, the Company shall prepare a certificate signed by its
chief financial officer setting forth, in reasonable detail, the event requiring
the adjustment, the amount of the adjustment, the method by which such
adjustment was calculated, and the Warrant Price and number of shares issuable
upon exercise of the Warrant after giving effect to such adjustment, and shall
cause copies of such certificate to be mailed (by certified or registered mail,
return receipt required, postage prepaid) within thirty (30) days of such
adjustment to the Holder of this warrant as set forth in Section 18 hereof.

9. "Market Stand-Off" Agreement. Holder hereby agrees that for a period of 180
days following the effective date of the first registration statement of the
Company covering common stock (or other securities) to be sold on its behalf in
an underwritten public offering, it will not, to the extent requested by the
Company and any underwriter, sell or otherwise

                                       5

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LMSI/Argonaut Technologies, Inc. Warrant
Page 6 of 7

transfer or dispose of (other than to donees or transferees who agree to be
similarly bound) any of the Shares at any time during such period except common
stock included in such registration; provided, however, that all officers and
directors of the Company who hold securities of the Company or options to
acquire securities of the Company and all other persons with registration
rights enter into similar agreements.

10.  Transferability of Warrant. This Warrant is transferable on the books of
the Company at its principal office by the registered Holder hereof upon
surrender of this Warrant properly endorsed, subject to compliance with
applicable federal and state securities laws. The Company shall issue and
deliver to the transferee a new Warrant representing the Warrant so
transferred. Upon any partial transfer, the Company will issue and deliver to
Holder a new Warrant with respect to the Warrant not so transferred. Holder
shall not have any right to transfer any portion of this Warrant to any direct
competitor of the Company.

11.  No Fractional Shares. No fractional share of Common Stock will be issued
in connection with any exercise hereunder, but in lieu of such fractional share
the Company shall make a cash payment therefor upon the basis of the Warrant
Price then in effect.

12.  Charges, Taxes and Expenses. Issuance of certificates for shares of Common
Stock upon the exercise of this Warrant shall be made without charge to the
Holder for any United States or state of the United States documentary stamp
tax or other incidental expense in respect of the issuance of such certificate,
all of which taxes and expenses shall be paid by the Company, and such
certificates shall be issued in the name of the Holder.

13.  No Shareholder Rights Until Exercise. This Warrant does not entitle the
Holder hereof to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof.

14.  Registry of Warrant. The Company shall maintain a registry showing the
name and address of the registered Holder of this Warrant. This Warrant may be
surrendered for exchange or exercise, in accordance with its terms, at such
office or agency of the Company, and the Company and Holder shall be entitled
to rely in all respects, prior to written notice to the contrary, upon such
registry.

15.  Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft,
or destruction, of indemnity reasonably satisfactory to it, and, if mutilated,
upon surrender and cancellation of this Warrant, the Company will execute and
deliver a new Warrant, having terms and conditions substantially identical to
this Warrant, in lieu hereof.

16.  Miscellaneous.

     (a)  Issue Date. The provisions of this Warrant shall be construed and
     shall be given effect in all respect as if it had been issued and delivered
     by the Company on the date hereof.

     (b)  Successors. This Warrant shall be binding upon any successors or
     assigns of the Company.

     (c)  Governing Law. This Warrant shall be governed by and construed in
     accordance with the laws of the State of California.

     (d)  Headings. The headings used in this Warrant are used for convenience
     only and are not to be considered in construing or interpreting this
     Warrant.

                                       6
<PAGE>   7
[ARGONAUT TECHNOLOGIES LOGO]

                               NOTICE OF EXERCISE

TO:

1.   The undersigned Warrantholder ("Holder") elects to acquire shares of the
     Common Stock of __________ (the "Company"), pursuant to the terms of the
     Stock Purchase Warrant dated ______________, 1995 (the "Warrant").

2.   The Holder exercises its rights under the Warrant as set forth below:

          (   )     The Holder elects to purchase ______ shares of Common Stock
                    as provided in Section 3(a), (c) and tenders herewith a
                    check in the amount of $___________ as payment of the
                    purchase price.

          (   )     The Holder elects to convert the purchase rights into shares
                    of Common Stock as provided in Section 3(b), (c) of the
                    Warrant.

3.   The Holder surrenders the Warrant with this Notice of Exercise.

4.   The Holder represents that it is acquiring the aforesaid shares of Common
     Stock for investment and not with a view to, or for resale in connection
     with, distribution and that the Holder has no present intention of
     distributing or reselling the shares.

5.   Please issue a certificate representing the shares of Common Stock in the
     name of the Holder or in such other name as is specified below:

          Name:
          Address:

          Taxpayer I.D.:

                                   ______________________________
                                   (Holder)

                                   By:    _______________________

                                   Title: _______________________

                                   Date:  _______________________

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