Document:

EXHIBIT 10.3

THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE 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,  OR  IN  A  TRANSACTION  NOT  SUBJECT  TO,  THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                                  ARMITEC, INC.

                              Expires June 5, 2007

No. W-1                                                       Irvine, California
                                                                    June 5, 2002

         FOR VALUE  RECEIVED,  subject to the provisions  hereinafter set forth,
the  undersigned,  ARMITEC,  INC.,  a Delaware  corporation  (together  with its
successors and assigns, the "Issuer"), hereby certifies that

                           FILTER INTERNATIONAL, LTD.

or its registered assigns is entitled to subscribe for and purchase,  during the
period specified in this Warrant,  up to 1,000,000 shares (subject to adjustment
as hereinafter provided) of the duly authorized,  validly issued, fully paid and
non-assessable  Common Stock of the Issuer, at an exercise price per share equal
to 105% of the  market  price at closing  ($.02625),  subject,  however,  to the
provisions and upon the terms and conditions hereinafter set forth.  Capitalized
terms used in this  Warrant  and not  otherwise  defined  herein  shall have the
respective meanings specified in Section 8 hereof.

         1. Term.  The right to  subscribe  for and  purchase  shares of Warrant
Stock represented  hereby shall commence on May 1, 2002 and shall expire at 5:00
p.m., New York City time, on June 5, 2007 (such period being the "Term").

         2. Method of Exercise  Payment:  Issuance of New Warrant:  Transfer and
Exchange.

         (a) Time of Exercise.  The purchase rights  represented by this Warrant
may be  exercised  in whole or in part at any time and from time to time  during
the Term commencing on June 5, 2002.

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised, payable by certified or official bank check.

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<PAGE>

         (c) Issuance of Stock Certificates. In the event of any exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and  conditions  hereof,  (i)  certificates  for the shares of Warrant  Stock so
purchased shall be delivered to the Holder hereof within a reasonable  time, not
exceeding five Trading Days after such exercise,  and the Holder hereof shall be
deemed for all  purposes  to be the  Holder of the  shares of  Warrant  Stock so
purchased  as of the date of such  exercise,  and (ii) unless  this  Warrant has
expired,  a new Warrant  representing  the number of shares of Warrant Stock, if
any, with respect to which this Warrant shall not then have been exercised (less
any amount thereof which shall have been cancelled in payment or partial payment
of the Warrant Price as hereinabove provided) shall also be issued to the Holder
hereof at the Issuer's expense within such time.

         (d) Transferability of Warrant.  This Warrant may not be transferred by
a Purchaser  without the prior written consent of the Company,  such consent not
to be  unreasonably  withheld.  If  transferred  pursuant to this  paragraph and
subject to the  provisions of subsection (e) of this Section 2, this Warrant may
be  transferred  on the books of the Issuer by the Holder hereof in person or by
duly authorized attorney, upon surrender of this Warrant at the principal office
of the Issuer,  properly  endorsed (by the Holder executing an assignment in the
form attached  hereto) and upon payment of any  necessary  transfer tax or other
governmental charge imposed upon such transfer.  This Warrant is exchangeable at
the  principal  office of the Issuer for  Warrants  for the purchase of the same
aggregate  number of shares of Warrant Stock,  each new Warrant to represent the
right to purchase  such number of shares of Warrant  Stock as the Holder  hereof
shall  designate at the time of such exchange.  All Warrants issued on transfers
or exchanges  shall be dated the Original Issue Date and shall be identical with
this  Warrant  except  as to the  number of shares  of  Warrant  Stock  issuable
pursuant hereto.

         (e) Compliance with Securities Laws.

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

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

                  THE  SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN  REGISTERED
WITH THE SECURITIES  AND EXCHANGE  COMMISSION IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION  UNDER THE  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, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.

                  (iii) The restrictions imposed by this subsection (e) upon the
transfer of this Warrant and the shares of Warrant  Stock to be  purchased  upon
exercise  hereof  shall  terminate  (A) when  such  securities  shall  have been
effectively  registered  under the Securities Act, (B) upon the Issuer's receipt
of an opinion of counsel, in form and substance  reasonably  satisfactory to the
Issuer,  addressed  to the Issuer to the effect  that such  restrictions  are no
longer  required to ensure  compliance  with the  Securities Act or (C) upon the
Issuer's  receipt of other evidence  reasonably  satisfactory to the Issuer that
such registration is not required.  Whenever such  restrictions  shall cease and
terminate as to any such  securities,  the Holder  thereof  shall be entitled to

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<PAGE>

receive from the Issuer (or its transfer agent and  registrar),  without expense
(other than applicable transfer taxes, if any), new Warrants (or, in the case of
shares of Warrant Stock,  new stock  certificates) of like tenor not bearing the
applicable  legends  required by paragraph (ii) above relating to the Securities
Act and state securities laws.

         (f) Continuing Rights of Holder.  The Issuer will, at the time of or at
any time after each  exercise  of this  Warrant,  upon the request of the Holder
hereof or of any shares of Warrant Stock issued upon such exercise,  acknowledge
in writing the extent,  if any, of its  continuing  obligation to afford to such
Holder all rights to which such Holder shall  continue to be entitled after such
exercise in accordance with the terms of this Warrant, provided that if any such
Holder  shall fail to make any such  request,  the failure  shall not affect the
continuing obligation of the Issuer to afford such rights to such Holder.

         (g ) Cashless Exercise.

                  (i) Payment may be made either in (1) cash or by  certified or
official bank check payable to the order of the Company equal to the  applicable
aggregate  Purchase  Price,  (2) by delivery of  Warrants,  Common  Stock and/or
Common Stock receivable upon exercise of the Warrants in accordance with Section
(ii) below,  or (3) by a combination  of any of the foregoing  methods,  for the
number of Common Shares specified in such form (as such exercise number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock
issuable  to the holder  per the terms of this  Warrant)  and the  holder  shall
thereupon be entitled to receive the number of duly authorized,  validly issued,
fully-paid  and  non-assessable  shares  of Common  Stock (or Other  Securities)
determined as provided herein.

                  (ii) Notwithstanding any provisions herein to the contrary, if
the Fair Market  Value of one share of Common Stock is greater than the Purchase
Price (at the date of  calculation  as set forth  below),  in lieu of exercising
this  Warrant for cash,  upon  consent of the  Company,  the holder may elect to
receive shares equal to the value (as determined  below) of this Warrant (or the
portion  thereof being  cancelled) by surrender of this Warrant at the principal
office of the Company together with the properly  endorsed  Subscription Form in
which event the  Company  shall issue to the holder a number of shares of Common
Stock computed using the following formula:

                           X=Y (A-B)
                                ---

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

                           Y=       the   number  of  shares  of  Common   Stock
                                    purchasable  under the Warrant or, if only a
                                    portion of the  Warrant is being  exercised,
                                    the portion of the Warrant  being  exercised
                                    (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=       Purchase  Price (as  adjusted to the date of
                                    such calculation)

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<PAGE>

         3. Stock Fully Paid: Reservation and Listing of Shares: Covenants.

         (a) Stock Fully Paid. The Issuer  represents,  warrants,  covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will, upon issuance,  be duly  authorized,
validly issued, fully paid and non-assessable and free from all taxes, liens and
charges  created by or through Issuer.  The Issuer further  covenants and agrees
that during the period  within which this Warrant may be  exercised,  the Issuer
will at all times have authorized and reserved for the purpose of the issue upon
exercise  of this  Warrant a  sufficient  number  of  shares of Common  Stock to
provide for the exercise of this Warrant.

         (b) Reservation.  If any shares of Common Stock required to be reserved
for issuance  upon exercise of this Warrant or as otherwise  provided  hereunder
require registration or qualification with any governmental  authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly  registered or qualified.  If the Issuer shall list
any shares of Common Stock on any securities  exchange or market it will, at its
expense,  list thereon,  maintain and increase when necessary such listing,  of,
all  shares of Warrant  Stock from time to time  issued  upon  exercise  of this
Warrant or as otherwise provided hereunder, and, to the extent permissible under
the applicable  securities  exchange rules, all unissued shares of Warrant Stock
which are at any time issuable hereunder,  so long as any shares of Common Stock
shall be so listed. The Issuer will also so list on each securities  exchange or
market, and will maintain such listing of, any other securities which the Holder
of this  Warrant  shall be entitled to receive upon the exercise of this Warrant
if at the time  any  securities  of the  same  class  shall  be  listed  on such
securities exchange or market by the Issuer.

         (c) Covenants.  The Issuer shall not by any action  including,  without
limitation,  amending the  Certificate  of  Incorporation  or the by-laws of the
Issuer,  or through  any  reorganization,  transfer  of  assets,  consolidation,
merger,  dissolution,  issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such  actions as may be  necessary  or  appropriate  to
protect  the  rights  of the  Holder  hereof  against  dilution  (to the  extent
specifically provided herein) or impairment.  Without limiting the generality of
the  foregoing,  the Issuer  will (i) not permit the par value,  if any,  of its
Common  Stock to exceed  the then  effective  Warrant  Price,  (ii) not amend or
modify any  provision  of the  Certificate  of  Incorporation  or by-laws of the
Issuer  in any  manner  that  would  adversely  affect  in any way  the  powers,
preferences or relative  participating,  optional or other special rights of the
Common  Stock or which would  adversely  affect the rights of the Holders of the
Warrants,  (iii) take all such action as may be  reasonably  necessary  in order
that the Issuer may  validly  and  legally  issue  fully paid and  nonassessable
shares of Common Stock,  free and clear of any liens,  claims,  encumbrances and
restrictions  (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such  authorizations,  exemptions or
consents from any public regulatory body having  jurisdiction  thereof as may be
reasonably  necessary to enable the Issuer to perform its obligations under this
Warrant.

         (d) Loss,  Theft,  Destruction  of  Warrants.  Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer
or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

         (e) Rights and Obligations under the Registration Rights Agreement. The
Warrant  Stock are  entitled  to the  benefits  and  subject to the terms of the
Registration  Rights Agreement dated as of even date herewith between the Issuer

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<PAGE>

and the Holders  listed on the signature  pages thereof (as amended from time to
time, the "Registration Rights Agreement"). The Issuer shall keep or cause to be
kept a copy of the Registration Rights Agreement, and any amendments thereto, at
its chief executive office and shall furnish,  without charge, copies thereof to
the Holder upon request.

         4. Adjustment of Warrant Price and Warrant Share Number. The number and
kind of Securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to  adjustment  from time to time upon the  happening  of
certain events as follows:

         (a) Recapitalization,  Reorganization, Reclassification, Consolidation,
Merger or Sale.  (i) In case the Issuer after the  Original  Issue Date shall do
any of the following (each, a "Triggering  Event") (a) consolidate with or merge
into any other  Person and the Issuer shall not be the  continuing  or surviving
corporation of such  consolidation or merger,  or (b) permit any other Person to
consolidate with or merge into the Issuer and the Issuer shall be the continuing
or surviving Person but, in connection with such  consolidation  or merger,  any
Capital Stock of the Issuer shall be changed into or exchanged for Securities of
any  other  Person  or  cash  or any  other  property,  or (c)  transfer  all or
substantially all of its properties or assets to any other Person, or (d) effect
a capital  reorganization or reclassification of its Capital Stock, then, and in
the case of each such Triggering Event,  proper provision shall be made so that,
upon the basis and the terms and in the manner  provided  in this  Warrant,  the
Holder of this Warrant  shall be entitled  (x) upon the  exercise  hereof at any
time after the consummation of such Triggering Event, to the extent this Warrant
is not exercised  prior to such  Triggering  Event, or is redeemed in connection
with such  Triggering  Event,  to receive at the Warrant  Price in effect at the
time  immediately  prior to the consummation of such Triggering Event in lieu of
the Common  Stock  issuable  upon such  exercise of this  Warrant  prior to such
Triggering  Event, the Securities,  cash and property to which such Holder would
have been entitled upon the consummation of such Triggering Event if such Holder
had exercised the rights represented by this Warrant  immediately prior thereto,
subject to adjustments  and increases  (subsequent to such corporate  action) as
nearly  equivalent  as possible  to the  adjustments  provided  for in Section 4
hereof or (y) to sell this Warrant  (or, at such  Holder's  election,  a portion
hereof) to the Person continuing after or surviving such Triggering Event, or to
the Issuer (if Issuer is the  continuing  or surviving  Person) at a sales price
equal to the amount of cash, property and/or Securities to which a holder of the
number of shares of Common Stock which would  otherwise have been delivered upon
the exercise of this Warrant would have been entitled upon the effective date or
closing of any such  Triggering  Event  (the  "Event  Consideration"),  less the
amount or portion of such Event  Consideration  having a fair value equal to the
aggregate  Warrant  Price  applicable  to this Warrant or the portion  hereof so
sold.

                  (ii) Notwithstanding anything contained in this Warrant to the
contrary,  the Issuer will not effect any Triggering Event unless,  prior to the
consummation  thereof, each Person (other than the Issuer) which may be required
to deliver any Securities, cash or property upon the exercise of this Warrant as
provided herein shall assume, by written instrument delivered to, and reasonably
satisfactory  to, the Holder of this Warrant,  (A) the obligations of the Issuer
under this  Warrant (and if the Issuer shall  survive the  consummation  of such
Triggering Event, such assumption shall be in addition to, and shall not release
the Issuer from,  any  continuing  obligations of the Issuer under this Warrant)
and (B) the obligation to deliver to such Holder such shares of Securities, cash
or property as, in accordance  with the foregoing  provisions of this subsection
(a),  such  Holder  shall be entitled  to  receive,  and such Person  shall have
similarly delivered to such Holder an opinion of counsel for such Person,  which
counsel  shall be  reasonably  satisfactory  to such  Holder,  stating that this
Warrant shall thereafter  continue in full force and effect and the terms hereof
(including,  without  limitation,  all of the provisions of this subsection (a))
shall be applicable to the Securities, cash or property which such Person may be
required to deliver  upon any  exercise of this  Warrant or the  exercise of any
rights pursuant hereto.

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<PAGE>

                  (iii) If with respect to any Triggering  Event,  the Holder of
this Warrant has exercised  its right as provided in clause (y) of  subparagraph
(i) of this subsection (a) to sell this Warrant or a portion thereof, the Issuer
agrees that as a condition to the  consummation of any such Triggering Event the
Issuer  shall  secure  such  right of Holder to sell this  Warrant to the Person
continuing  after or surviving  such  Triggering  Event and the Issuer shall not
effect  any such  Triggering  Event  unless  upon or  prior to the  consummation
thereof the amounts of cash,  property  and/or  Securities  required  under such
clause (y) are  delivered to the Holder of this Warrant.  The  obligation of the
Issuer to secure such right of the Holder to sell this Warrant  shall be subject
to such Holder's cooperation with the Issuer, including, without limitation, the
giving  of  customary   representations  and  warranties  to  the  purchaser  in
connection  with any such sale.  Prior notice of any  Triggering  Event shall be
given to the Holder of this Warrant in accordance with Section 11 hereof.

         (b)  Subdivision or Combination of Shares.  If the Issuer,  at any time
while this  Warrant is  outstanding,  shall  subdivide  or combine any shares of
Common Stock,  (i) in case of subdivision of shares,  the Warrant Price shall be
proportionately reduced (as at the effective date of such subdivision or, if the
Issuer  shall take a record of Holders of its Common Stock for the purpose of so
subdividing,  as at the applicable record date, whichever is earlier) to reflect
the  increase in the total  number of shares of Common  Stock  outstanding  as a
result of such subdivision,  or (ii) in the case of a combination of shares, the
Warrant Price shall be  proportionately  increased (as at the effective  date of
such  combination or, if the Issuer shall take a record of Holders of its Common
Stock  for the  purpose  of so  combining,  as at the  applicable  record  date,
whichever is earlier) to reflect the  reduction in the total number of shares of
Common Stock outstanding as a result of such combination.

         (c) Certain  Dividends and  Distributions.  If the Issuer,  at any time
while this Warrant is outstanding, shall:

                  (i)  Stock  Dividends.  Pay a  dividend  in, or make any other
distribution to its stockholders (without consideration  therefor) of, shares of
Common  Stock,  the Warrant  Price shall be adjusted,  as at the date the Issuer
shall take a record of the Holders of the Issuer's Capital Stock for the purpose
of receiving such dividend or other distribution (or if no such record is taken,
as at the date of such payment or other distribution),  to that price determined
by multiplying the Warrant Price in effect immediately prior to such record date
(or if no such record is taken,  then immediately prior to such payment or other
distribution),  by a  fraction  (1) the  numerator  of which  shall be the total
number of shares of Common Stock outstanding  immediately prior to such dividend
or  distribution,  and (2) the denominator of which shall be the total number of
shares  of  Common  Stock   outstanding   immediately  after  such  dividend  or
distribution (plus in the event that the Issuer paid cash for fractional shares,
the number of additional shares which would have been outstanding had the Issuer
issued fractional shares in connection with said dividends); or

                  (ii)  Other  Dividends.   Pay  a  dividend  on,  or  make  any
distribution  of its assets upon or with respect to (including,  but not limited
to, a  distribution  of its  property  as a dividend in  liquidation  or partial
liquidation  or by way of return of  capital),  the Common  Stock (other than as
described  in clause  (i) of this  subsection  (c)),  or in the  event  that the
Company  shall offer  options or rights to subscribe for shares of Common Stock,
or issue any Common Stock  Equivalents,  to all of its holders of Common  Stock,
then on the  record  date for such  payment,  distribution  or offer  or, in the
absence of a record date,  on the date of such payment,  distribution  or offer,
the Holder shall  receive  what the Holder would have  received had it exercised
this  Warrant  in full  immediately  prior to the record  date of such  payment,
distribution or offer or, in the absence of a record date,  immediately prior to
the date of such payment, distribution or offer.

         (d) Other  Provisions  Applicable to Adjustments  Under this Section 4.

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The following provisions shall be applicable to the making of adjustments in the
Warrant Price hereinbefore provided in Section 4:

                  (i) Computation of Consideration.  The consideration  received
by the  Issuer  shall be  deemed to be the  following:  to the  extent  that any
Additional  Shares of Common  Stock or any  Common  Stock  Equivalents  shall be
issued  for a cash  consideration,  the  consideration  received  by the  Issuer
therefor,  or if  such  Additional  Shares  of  Common  Stock  or  Common  Stock
Equivalents are offered by the Issuer for subscription,  the subscription price,
or, if such  Additional  Shares of Common Stock or Common Stock  Equivalents are
sold to  underwriters  or dealers  for public  offering  without a  subscription
offering, the public offering price, in any such case excluding any amounts paid
or receivable for accrued interest or accrued dividends and without deduction of
any compensation,  discounts,  commissions,  or expenses paid or incurred by the
Issuer  for or in  connection  with the  underwriting  thereof or  otherwise  in
connection with the issue thereof; to the extent that such issuance shall be for
a consideration  other than cash,  then,  except as herein  otherwise  expressly
provided,  the  fair  market  value  of such  consideration  at the time of such
issuance as determined  in good faith by the Board.  The  consideration  for any
Additional  Shares  of  Common  Stock  issuable  pursuant  to any  Common  Stock
Equivalents shall be the  consideration  received by the Issuer for issuing such
Common  Stock  Equivalents,  plus the  additional  consideration  payable to the
Issuer  upon  the  exercise,   conversion  or  exchange  of  such  Common  Stock
Equivalents.  In case of the  issuance at any time of any  Additional  Shares of
Common  Stock or Common  Stock  Equivalents  in payment or  satisfaction  of any
dividend  upon any class of Capital Stock of the Issuer other than Common Stock,
the Issuer shall be deemed to have received for such Additional Shares of Common
Stock or Common Stock  Equivalents a  consideration  equal to the amount of such
dividend  so paid or  satisfied.  In any case in which the  consideration  to be
received or paid shall be other than cash,  the Board shall notify the Holder of
this Warrant of its determination of the fair market value of such consideration
prior to payment or accepting  receipt  thereof.  If,  within  thirty days after
receipt of said notice,  the Majority  Holders shall notify the Board in writing
of their objection to such  determination,  a  determination  of the fair market
value of such consideration  shall be made by an Independent  Appraiser selected
by the Majority Holders with the approval of the Board (which approval shall not
be unreasonably withheld), whose fees and expenses shall be paid by the Issuer.

                  (ii)  Readjustment  of Warrant  Price.  Upon the expiration or
termination  of the right to  convert,  exchange or  exercise  any Common  Stock
Equivalent the issuance of which effected an adjustment in the Warrant Price, if
such  Common  Stock  Equivalent  shall not have  been  converted,  exercised  or
exchanged  in its  entirety,  the number of shares of Common  Stock deemed to be
issued  and  outstanding  by reason of the fact  that  they were  issuable  upon
conversion,  exchange or exercise of any such Common Stock  Equivalent  shall no
longer be computed as set forth above,  and the Warrant Price shall forthwith be
readjusted and thereafter be the price which it would have been (but  reflecting
any other  adjustments  in the Warrant Price made pursuant to the  provisions of
this  Section 4 after the  issuance of such  Common  Stock  Equivalent)  had the
adjustment  of the Warrant  Price been made in  accordance  with the issuance or
sale of the number of  Additional  Shares of Common Stock  actually  issued upon
conversion,  exchange or issuance of such Common Stock  Equivalent and thereupon
only the number of Additional Shares of Common Stock actually so issued shall be
deemed to have been issued and only the  consideration  actually received by the
Issuer  (computed  as in clause (i) of this  subsection  (g)) shall be deemed to
have been received by the Issuer.

                  (iii) Outstanding Common Stock. The number of shares of Common
Stock at any time  outstanding  shall (A) not  include any shares  thereof  then
directly or indirectly  owned or held by or for the account of the Issuer or any
of its  Subsidiaries,  and (B) be deemed to include  all shares of Common  Stock
then  issuable  upon  conversion,  exercise or exchange of any then  outstanding
Common  Stock  Equivalents  or any other  evidences of  Indebtedness,  shares of

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<PAGE>

Capital Stock or other  Securities  which are or may be at any time  convertible
into or exchangeable for shares of Common Stock or Other Common Stock.

         (e) Other Action  Affecting  Common  Stock.  In case after the Original
Issue Date the Issuer shall take any action  affecting its Common  Stock,  other
than an action described in any of the foregoing  subsections (a) through (d) of
this  Section 4,  inclusive,  and the failure to make any  adjustment  would not
fairly  protect the purchase  rights  represented  by this Warrant in accordance
with the  essential  intent and  principle  of this  Section 4, then the Warrant
Price shall be adjusted in such manner and at such time as the Board may in good
faith determine to be equitable in the circumstances.

         (f)  Adjustment of Warrant Share  Number.  Upon each  adjustment in the
Warrant Price pursuant to any of the foregoing provisions of this Section 4, the
Warrant Share Number shall be adjusted,  to the nearest one hundredth of a whole
share,  to  the  product  obtained  by  multiplying  the  Warrant  Share  Number
immediately  prior to such  adjustment in the Warrant  Price by a fraction,  the
numerator of which shall be the Warrant Price  immediately  before giving effect
to such  adjustment  and the  denominator  of which shall be the  Warrant  Price
immediately  after giving effect to such  adjustment.  If the Issuer shall be in
default  under any  provision  contained  in  Section 3 of this  Warrant so that
shares  issued at the Warrant Price  adjusted in accordance  with this Section 4
would not be validly issued, the adjustment of the Warrant Share Number provided
for in the foregoing  sentence shall  nonetheless be made and the Holder of this
Warrant  shall be  entitled  to purchase  such  greater  number of shares at the
lowest price at which such shares may then be validly  issued  under  applicable
law. Such exercise  shall not  constitute a waiver of any claim arising  against
the Issuer by reason of its default under Section 3 of this Warrant.

         (g) Form of Warrant  after  Adjustments.  The form of this Warrant need
not be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

         5. Notice of  Adjustments.  Whenever the Warrant Price or Warrant Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with  respect to the matters set forth in such  certificate  may at
the option of the Holder of this  Warrant be  submitted  to one of the  national
accounting  firms  currently  known as the "big five"  selected  by the  Holder,
provided  that the Issuer shall have ten days after  receipt of notice from such
Holder  of its  selection  of such firm to object  thereto,  in which  case such
Holder shall select another such firm and the Issuer shall have no such right of
objection.  The firm  selected by the Holder of this  Warrant as provided in the
preceding  sentence shall be instructed to deliver a written  opinion as to such
matters to the Issuer and such Holder within thirty days after  submission to it
of such dispute.  Such opinion shall be final and binding on the parties hereto.
The fees and expenses of such accounting firm shall be paid by the Issuer.

         6.  Fractional  Shares.  No fractional  shares of Warrant Stock will be
issued in connection  with and exercise  hereof,  but in lieu of such fractional
shares,  the Issuer  shall make a cash payment  therefor  equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

         7.  Warrant  Exercise  Restriction.  Notwithstanding  anything  to  the
contrary  set forth in this  Warrant,  at no time may a holder  of this  Warrant

                                       8
<PAGE>

exercise this Warrant,  or a portion  hereof,  if the number of shares of Common
Stock to be issued pursuant to such exercise would exceed,  when aggregated with
all other shares of Common Stock owned by such holder at such time, would result
in such  holder  owning  more than 9.99% of all of the Common  Stock  issued and
outstanding at such time; provided,  however, that upon a holder of this Warrant
providing  the Issuer with 75 days notice  (pursuant  to Section 11 hereof) (the
"Waiver  Notice") that such holder would like to waive Section 7 of this Warrant
with regard to any or all shares of Common Stock  issuable  upon exercise of the
Warrant, this Section 7 will be of no further force or effect with regard to the
number of shares exercisable  pursuant to the Warrant, or the applicable portion
thereof, referenced in the Waiver Notice.

         8. Definitions.  For the purposes of this Warrant,  the following terms
have the following meanings:

         "Additional  Shares of Common  Stock"  means all shares of Common Stock
issued by the Issuer  after the  Original  Issue  Date,  and all shares of Other
Common,  if any, issued by the Issuer after the Original Issue Date,  except (i)
Warrant Stock,  (ii) any shares of Common Stock issuable upon  conversion of the
Notes  pursuant  to the  Purchase  Agreement,  (iii) any shares of Common  Stock
issuable upon  conversion of the  promissory  notes and exercise of the warrants
issued pursuant to the Convertible  Note Purchase  Agreement dated June 5, 2002,
and (iv)  options or  warrants or rights to  purchase  stock  issued to officers
and/or  directors  of the Maker and any  shares of Common  Stock  issuable  upon
exercise of the Stock Options.

         "Board" shall mean the Board of Directors of the Issuer.

         "Capital  Stock" means and includes (i) any and all shares,  interests,
participations  or other  equivalents  of or interests  in (however  designated)
corporate  stock,  including,   without  limitation,   shares  of  preferred  or
preference stock, (ii) all partnership interests (whether general or limited) in
any Person which is a  partnership,  (iii) all  membership  interests or limited
liability  company  interests  in any limited  liability  company,  and (iv) all
equity or ownership interests in any Person of any other type.

         "Certificate of  Incorporation"  means the Certificate of Incorporation
of the Issuer as in effect on the Original  Issue Date,  and as  hereafter  from
time to time amended, modified,  supplemented or restated in accordance with the
terms hereof and thereof and pursuant to applicable law.

         "Original Issue Date" means June 5, 2002.

         "Common Stock" means the Common Stock, $.00167 par value, of the Issuer
and any other Capital Stock into which such stock may hereafter be changed.

         "Common Stock  Equivalent"  means any Convertible  Security or warrant,
option or other right to  subscribe  for or purchase  any  Additional  Shares of
Common Stock or any Convertible Security.

         "Convertible  Securities"  means the Notes,  evidences of Indebtedness,
shares of  Capital  Stock or other  Securities,  which are or may be at any time
convertible into or exchangeable for Additional Shares of Common Stock. The term
"Convertible Security" means one of the Convertible Securities.

         "Governmental   Authority"  means  any   governmental,   regulatory  or
self-regulatory  entity,  department,  body,  official,  authority,  commission,
board, agency or instrumentality,  whether federal,  state or local, and whether
domestic or foreign.

         "Holders" mean the Persons who shall from time to time own any Warrant.
The term "Holder" means one of the Holders.

                                       9
<PAGE>

         "Independent Appraiser" means a nationally recognized or major regional
investment  banking firm or firm of independent  certified public accountants of
recognized standing (which may be the firm that regularly examines the financial
statements  of  the  Issuer)  that  is  regularly  engaged  in the  business  of
appraising  the Capital  Stock or assets of  corporations  or other  entities as
going concerns, and which is not affiliated with either the Issuer or the Holder
of any Warrant.

         "Issuer" means Armitec Inc, a Delaware Corporation, and its successors.

         "Majority   Holders"   means  at  any  time  the  Holders  of  Warrants
exercisable  for a majority of the shares of Warrant  Stock  issuable  under the
Warrants at the time outstanding.

         "NASDAQ" means the National Association of Securities Dealers Automated
Quotation System.

         "Notes" means the convertible  promissory  notes issued pursuant to the
Purchase Agreement.

         "Other Common" means any other Capital Stock of the Issuer of any class
which shall be authorized at any time after the date of this Warrant (other than
Common Stock) and which shall have the right to participate in the  distribution
of earnings and assets of the Issuer without limitation as to amount.

         "Person" means an individual,  corporation,  limited liability company,
partnership,  joint stock company,  trust,  unincorporated  organization,  joint
venture, Governmental Authority or other entity of whatever nature.

         "Per Share Market Value" means on any  particular  date (a) the closing
bid price per share of the  Common  Stock on such date on The  Nasdaq  Small-Cap
Market,  the Nasdaq National Market or other registered  national stock exchange
on which the  Common  Stock is then  listed or if there is no such price on such
date,  then the closing bid price on such  exchange or  quotation  system on the
date nearest  preceding such date, or (b) if the Common Stock is not listed then
on The Nasdaq  Small-Cap  Market,  the Nasdaq  National Market or any registered
national  stock  exchange,  the closing bid price for a share of Common Stock in
the over-the-counter  market, as reported by NASDAQ or in the National Quotation
Bureau  Incorporated  or  similar  organization  or  agency  succeeding  to  its
functions of reporting  prices) at the close of business on such date, or (c) if
the  Common  Stock  is not  then  reported  by  the  National  Quotation  Bureau
Incorporated (or similar  organization or agency  succeeding to its functions of
reporting prices),  then the average of the "Pink Sheet" quotes for the relevant
conversion  period,  as  determined  in good faith by the holder,  or (d) if the
Common  Stock is not then  publicly  traded the fair market  value of a share of
Common Stock as determined by an Independent Appraiser selected in good faith by
the Majority Holders;  provided,  however, that the Issuer, after receipt of the
determination by such Independent  Appraiser,  shall have the right to select an
additional Independent Appraiser,  in which case, the fair market value shall be
equal to the average of the  determinations by each such Independent  Appraiser;
and  provided,  further  that all  determinations  of the Per Share Market Value
shall be appropriately  adjusted for any stock dividends,  stock splits or other
similar  transactions during such period. The determination of fair market value
by an  Independent  Appraiser  shall be based upon the fair market  value of the
Issuer  determined  on a going  concern  basis as between a willing  buyer and a
willing  seller and taking into account all relevant  factors  determinative  of
value,  and shall be final and binding on all parties.  In determining  the fair
market value of any shares of Common Stock, no  consideration  shall be given to
any  restrictions  on transfer of the Common  Stock  imposed by  agreement or by
federal or state  securities  laws,  or to the  existence  or absence of, or any
limitations on, voting rights.

                                       10
<PAGE>

         "Purchase  Agreement"  means the  Convertible  Note Purchase  Agreement
dated as of June 5, 2002 among the Issuer and the purchaser named therein.

         "Registration  Rights  Agreement" has the meaning  specified in Section
3(e) hereof.

         "Securities" means any debt or equity securities of the Issuer, whether
now or hereafter authorized, any instrument convertible into or exchangeable for
Securities or a Security,  and any option, warrant or other right to purchase or
acquire any Security. "Security" means one of the Securities.

         "Securities  Act" means the Securities Act of 1933, as amended,  or any
similar federal statute then in effect.

         "Stock Options" means options to purchase shares of Common Stock issued
by the Issuer on the  Original  Issue Date to  certain  members of the  Issuer's
senior  management,  as the same may from time to time be  amended,  modified or
supplemented in accordance with their terms.

         "Subsidiary"  means any  corporation at least 50% of whose  outstanding
Voting Stock shall at the time be owned  directly or indirectly by the Issuer or
by one or  more of its  Subsidiaries,  or by the  Issuer  and one or more of its
Subsidiaries.

                  "Trading Day" means (a) a day on which the Common Stock is
traded on The Nasdaq Small-Cap Market, the Nasdaq National Market or other
registered national stock exchange on which the Common Stock has been listed, or
(b) if the Common Stock is not listed on The Nasdaq Small-Cap Market, the Nasdaq
National Market or any registered national stock exchange, a day or which the
Common Stock is traded in the over-the-counter market, as reported by the OTC
Bulletin Board, or (c) if the Common Stock is not quoted on the OTC Bulletin
Board, a day on which the Common Stock is quoted in the over-the-counter market
as reported by the National Quotation Bureau Incorporated (or any similar
organization or agency succeeding its functions of reporting prices); provided,
however, that in the event that the Common Stock is not listed or quoted as set
forth in (a), (b) and (c) hereof, then Trading Day shall mean any day except
Saturday, Sunday and any day which shall be a legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law
or other government action to close.

         "Term" has the meaning specified in Section 1 hereof.

         "Voting  Stock",  as applied to the Capital  Stock of any  corporation,
means Capital Stock of any class or classes (however designated) having ordinary
voting  power for the  election  of a  majority  of the  members of the Board of
Directors  (or other  governing  body) of such  corporation,  other than Capital
Stock having such power only by reason of the happening of a contingency.

         "Warrants"  means the Warrants issued and sold pursuant to the Purchase
Agreement,  including,  without limitation, this Warrant, and any other warrants
of like tenor issued in substitution or exchange for any thereof pursuant to the
provisions  of  Section  2(c),  2(d) or  2(e)  hereof  or of any of  such  other
Warrants.

         "Warrant Price" means initially 105% of the market price at closing, as
such  price  may be  adjusted  from  time to  time  as  shall  result  from  the
adjustments specified in Section 4 hereof.

         "Warrant Share Number" means at any time the aggregate number of shares
of Warrant  Stock  which may at such time be  purchased  upon  exercise  of this
Warrant,  after giving  effect to all prior  adjustments  and  increases to such
number made or required to be made under the terms hereof.

                                       11
<PAGE>

         "Warrant  Stock"  means  Common  Stock  issuable  upon  exercise of any
Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

         8. Other Notices. In case at any time:

         (A) the Issuer  shall make any  distributions  to the holders of Common
Stock; or

         (B) the Issuer  shall  authorize  the  granting  to all  holders of its
Common Stock of rights to subscribe  for or purchase any shares of Capital Stock
of any class or of any Common Stock  Equivalents  or  Convertible  Securities or
other rights; or

         (C) there shall be any  reclassification  of the  Capital  Stock of the
Issuer; or

         (D) there shall be any capital reorganization by the Issuer; or

         (E) there shall be any (i) consolidation or merger involving the Issuer
or (ii) sale,  transfer or other  disposition of all or substantially all of the
Issuer's property,  assets or business (except a merger or other  reorganization
in which the Issuer shall be the surviving corporation and its shares of Capital
Stock shall continue to be outstanding and unchanged and except a consolidation,
merger,   sale,   transfer  or  other   disposition   involving  a  wholly-owned
Subsidiary); or

         (F) there shall be a voluntary or involuntary dissolution,  liquidation
or  winding-up  of the  Issuer  or any  partial  liquidation  of the  Issuer  or
distribution to holders of Common Stock;

         then,  in each of such cases,  the Issuer shall give written  notice to
the  Holder of the date on which (i) the books of the  Issuer  shall  close or a
record shall be taken for such dividend,  distribution or subscription rights or
(ii) such reorganization, reclassification,  consolidation, merger, disposition,
dissolution,  liquidation or  winding-up,  as the case may be, shall take place.
Such notice also shall  specify the date as of which the holders of Common Stock
of record shall  participate  in such  dividend,  distribution  or  subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation, merger, disposition,  dissolution, liquidation
or  winding-up,  as the case may be. Such notice  shall be given at least twenty
days prior to the action in question  and not less than twenty days prior to the
record  date or the date on which the  Issuer's  transfer  books  are  closed in
respect thereto.  The Issuer shall give to the Holder notice of all meetings and
actions by written  consent  of its  stockholders,  at the same time in the same
manner as notice of any  meetings  of  stockholders  is  required to be given to
stockholders who do not waive such notice (or, if such requires no notice,  then
two Trading Days written notice thereof describing the matters upon which action
is to be  taken).  The Holder  shall have the right to send two  representatives
selected by it to each meeting,  who shall be permitted to attend,  but not vote
at, such meeting and any adjournments  thereof. This Warrant entitles the Holder
to receive copies of all financial and other information distributed or required
to be distributed to the holders of the Common Stock.

         9. Amendment and Waiver. Any term, covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 9 without the consent of the Holder of this Warrant.

                                       12
<PAGE>

         10.  Governing  Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  GIVING  EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW.

         11. Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and  effective on the earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via  facsimile  at the  facsimile
telephone number specified for notice prior to 5:00 p.m.,  Atlanta City time, on
a Business  Day, (ii) the Business Day after the date of  transmission,  if such
notice or  communication  is delivered via facsimile at the facsimile  telephone
number specified for notice later than 5:00 p.m., Atlanta City time, on any date
and earlier than 11:59 p.m.,  Atlanta time, on such date, (iii) the Business Day
following  the  date of  mailing,  if sent by  nationally  recognized  overnight
courier  service  or (iv)  actual  receipt  by the party to whom such  notice is
required  to be  given.  The  addresses  for such  communications  shall be with
respect  to the  Holder of this  Warrant or of  Warrant  Stock  issued  pursuant
hereto,  addressed to such Holder at its last known address or facsimile  number
appearing  on the books of the  Issuer  maintained  for such  purposes,  or with
respect to the Issuer, addressed to:

                           Armitec, Inc.
                           4479 Atlanta Road
                           Smyrna, Georgia 30080
                           Attention:  Chief Executive Officer
                           Facsimile No.: (404) 842-9418

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have  designated in writing to the other parties  hereto
by such  notice.  Greenberg  Traurig  LLP.,  Attn:  Robert  E.  Altenbach,  3290
Northside  Parkway,  Suite 400,  Atlanta,  Georgia  30327,  Facsimile No.: (678)
553-2188 .

         12. Warrant Agent.  The Issuer may, by written notice to each Holder of
this  Warrant,  appoint  an agent  having an office in Texas for the  purpose of
issuing  shares of Warrant  Stock on the  exercise of this  Warrant  pursuant to
subsection  (b) of  Section  2  hereof,  exchanging  this  Warrant  pursuant  to
subsection  (d) of  Section 2 hereof  or  replacing  this  Warrant  pursuant  to
subsection (d) of Section 3 hereof, or any of the foregoing,  and thereafter any
such  issuance,  exchange or  replacement,  as the case may be, shall be made at
such office by such agent.

                                       13
<PAGE>

         13.  Registration  Rights.  The  initial  holder of this  Warrant  (and
certain  assignees  thereof) is  entitled  to the  benefit of such  registration
rights in respect  of the  Warrant  Shares as are set forth in the  Registration
Rights   Agreement.   The  terms  of  the  Registration   Rights  Agreement  are
incorporated herein by this reference.

         If the  Registration  Statement  is not  filed or deemed  effective  as
defined in the Registration  Right Agreement,  within the time periods set forth
in the Registration  Right Agreement,  and the Company is unable to issue Common
Stock upon  exercise of this  Warrant that has been  registered  within the time
period  specified  in this  document,  then upon demand made by the Holder,  the
Company will pay to the Holder of this  Warrant,  in lieu of  delivering  Common
Stock,  a sum equal to the closing  price of the  Company's  Common stock on the
Principal Market (as defined in the Registration  Right Agreement) or such other
principal  trading  market for the  Company's  Common  Stock on the trading date
immediately  preceding the date notice is given by the Holder, less the purchase
price, for each share of Common Stock designated in such notice from the Holder.

         14.  Remedies.  The Issuer  stipulates  that the remedies at law of the
Holder of this Warrant in the event of any default or threatened  default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that,  to the fullest  extent  permitted by
law,  such  terms may be  specifically  enforced  by a decree  for the  specific
performance  of any agreement  contained  herein or by an  injunction  against a
violation of any of the terms hereof or otherwise.

         15.  Successors  and  Assigns.  This  Warrant and the rights  evidenced
hereby  shall inure to the  benefit of and be binding  upon the  successors  and
assigns of the Issuer, the Holder hereof and (to the extent provided herein) the
Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any
such Holder or Holder of Warrant Stock

         16.  Modification and Severability.  If, in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

         17.  Headings.  The  headings of the  Sections of this  Warrant are for
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

         IN WITNESS WHEREOF,  the Issuer has executed this Warrant as of the day
and year first above written.

                                                   ARMITEC, INC.

                                                   By:__________________________
                                                      Bruce R. Davis
                                                      Chief Executive Officer

                                       14
<PAGE>

                              FORM OF SUBSCRIPTION
                   (to be signed only on exercise of Warrant)

To: _________________________

The undersigned,  pursuant to the provisions set forth in the attached  Warrant,
hereby irrevocably elects to purchase (check applicable box)):

___      _____________ shares of the Common Stock covered by such Warrant; or

___ the  maximum  number  of  shares of Common  Stock  covered  by such  Warrant
pursuant to the cashless exercise procedure set forth in Section 2 (g).

The  undersigned  herewith  makes  payment of the full  purchase  price for such
shares at the price per share provided for is Warrant, which is $ _____________.
Such payment takes the form of (check applicable box or boxes);

___      $ ____________ in lawful money of the United States; and/or

___ the  cancellation of such portion of the attached  Warrant as is exercisable
for a total of _______  shares of Common  Stock  (using a Fair Market Value of $
______ per share for purposes of this calculation); and/or

___ the  cancellation  of such number of shares of Common Stock as is necessary,
in  accordance  with the formula  set forth in Section 2 (g),  to exercise  this
Warrant with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section 2 (g).

The undersigned  requests that the certificates for such shares be issued in the
name of, and delivered to ________________________________________ whose address
is______________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

The  undersigned  represents  and  Warrants  that all  offers  and  sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933,  as amended  (the  "Securities  Act"),  or pursuant to an  exemption  from
registration under the Securities Act.

Dated: ___________                  ____________________________________________
                                    (Signature must conform to name of holder as
                                    specified on the face of the Warrant)

                                    ____________________________________________
                                    ____________________________________________
                                    (address)

                                       15EXHIBIT 10.4

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

         This  Registration  Rights  Agreement  (this  "Agreement")  is made and
entered into as of June 5, 2002,  between  Armitec Inc., a Delaware  corporation
(the  "Company")  and the  purchaser  listed on Schedule I attached  hereto (the
"Purchaser")

         This Agreement is being entered into pursuant to the  Convertible  Note
Purchase  Agreement,  dated as of the date  hereof  between  the Company and the
Purchaser (the "Purchase Agreement").

         The Company and the Purchaser hereby agree as follows:

         1.       Definitions.
                  ------------

                  Capitalized  terms used and not otherwise defined herein shall
have the meanings  given such terms in the Purchase  Agreement.  As used in this
Agreement, the following terms shall have the following meanings:

                  "Affiliate"  means,  with  respect  to any  Person,  any other
Person that directly or indirectly  controls or is controlled by or under common
control with such Person.  For the purposes of this definition,  "control," when
used with respect to any Person,  means the possession,  direct or indirect,  of
the power to direct or cause the  direction  of the  management  and policies of
such Person, whether through the ownership of voting securities,  by contract or
otherwise;  and the terms of "affiliated,"  "controlling"  and "controlled" have
meanings correlative to the foregoing.

                  "Board" shall have meaning set forth in Section 3(n).

                  "Business Day" means any day except  Saturday,  Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
state  of New  York  generally  are  authorized  or  required  by  law or  other
government actions to close.

                  "Closing  Date" means the date of the closing of the  purchase
and sale of the Notes and Warrant Shares pursuant to the Purchase Agreement.

                  "Commission" means the Securities and Exchange Commission.

                  "Common  Stock" means the Company's  Common  Stock,  par value
$0.00167 per share.

                  "Effectiveness  Date" means with  respect to the  Registration
Statement on or before September 30, 2002.

                  "Effectiveness  Period"  shall have the  meaning  set forth in
Section 2(a).

<PAGE>

                  "Event" shall have the meaning set forth in Section 7(e)(i).

                  "Event  Date"  shall  have the  meaning  set forth in  Section
7(e)(i).

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

                  "Filing Date" means on or before July 1, 2002.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified  Party"  shall  have  the  meaning  set  forth in
Section 5(c).

                  "Indemnifying  Party"  shall  have the  meaning  set  forth in
Section 5(c).

                  "Losses" shall have the meaning set forth in Section 5(a).

                  "Person"  means an individual or a  corporation,  partnership,
trust,  incorporated  or  unincorporated  association,  joint  venture,  limited
liability  company,  joint stock company,  government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "Proceeding" means an action,  claim,  suit,  investigation or
proceeding   (including,   without  limitation,   an  investigation  or  partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities covered by the Registration  Statement,  and all other amendments and
supplements to the  Prospectus,  including  post-effective  amendments,  and all
material incorporated by reference in such Prospectus.

                  "Registrable  Securities"  means the  shares  of Common  Stock
issuable  upon  conversion  of the Note and the shares of Common Stock  issuable
upon exercise of the Warrant;  provided,  however,  that Registrable  Securities
shall  include  (but not be limited to) a number of shares of Common Stock equal
to no less than 200% of the maximum number of shares of Common Stock which would
be  issuable  upon  conversion  of the Note and upon  exercise  of the  Warrant,
assuming such conversion and exercise occurred on the Closing Date or the Filing
Date,  whichever  date  would  result  in  the  greater  number  of  Registrable
Securities.  Such registered shares of Common Stock shall be allocated among the
Holders pro rata based on the total number of Registrable  Securities  issued or
issuable as of each date that a Registration Statement, as amended,  relating to
the  resale  of  the  Registrable   Securities  is  declared  effective  by  the
Commission.  Notwithstanding  anything herein contained to the contrary,  if the
actual number of shares of Common Stock issuable upon conversion of the Note and
upon  exercise  of the  Warrant  exceeds  200% of the number of shares of Common
Stock  issuable  upon  conversion  of the Note and upon  exercise of the Warrant

                                       2
<PAGE>

based upon a  computation  as at the Closing Date or the Filing  Date,  the term
"Registrable  Securities"  shall be deemed to include such additional  shares of
Common Stock.

                  "Registration Statement" means the registration statements and
any additional  registration  statements contemplated by Section 2(a), including
(in each case) the Prospectus,  amendments and supplements to such  registration
statement or  Prospectus,  including  pre- and  post-effective  amendments,  all
exhibits   thereto,   and  all  material   incorporated  by  reference  in  such
registration statement.

                  "Rule  144"  means  Rule  144  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule  158"  means  Rule  158  promulgated  by the  Commission
pursuant to the  Securities  Act, as such Rule may be amended from time to time,
or any similar rule or regulation  hereafter  adopted by the  Commission  having
substantially the same effect as such Rule.

                  "Rule 415" means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

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

                  "Special  Counsel"  means any special  counsel to the Holders,
for which the Holders will be reimbursed by the Company pursuant to Section 4.

         2.       Continuous and Delayed Offering Registration.
                  ---------------------------------------------

                  On or prior to the Filing Date the Company  shall  prepare and
file with the  Commission a  Registration  Statement  covering  all  Registrable
Securities  for an offering to be made on a  continuous  basis  pursuant to Rule
415. The Registration  Statement shall be on Form S-2 or other appropriate form.
The  Company  shall (i) not permit  any  securities  other than the  Registrable
Securities to be included in the Registration  Statement  without the consent of
the Purchaser with the exception of those disclosed in Schedule II, and (ii) use
its best efforts to cause the  Registration  Statement to be declared  effective
under the Securities Act as promptly as possible after the filing  thereof,  but
in any event  prior to the  Effectiveness  Date,  and to keep such  Registration
Statement  continuously effective under the Securities Act until such date as is
the  earlier  of (x) the date when all  Registrable  Securities  covered by such
Registration  Statement have been sold or (y) the date on which the  Registrable
Securities  may  be  sold  without  any  restriction  pursuant  to  Rule  144 as
determined by the counsel to the Company  pursuant to a written  opinion letter,
addressed to the  Company's  transfer  agent to such effect (the  "Effectiveness
Period").  If an  additional  Registration  Statement  is  required  to be filed
because  the  actual  number of shares of Common  Stock into which the Notes are
convertible  and the  Warrants are  exercisable  exceeds the number of shares of

                                       3
<PAGE>

Common Stock  initially  registered in respect of the Conversion  Shares and the
Warrant Shares based upon the computation on the Closing Date, the Company shall
have  forty  five  (45)  business  Days to  file  such  additional  Registration
Statement,  and the Company shall use its best efforts to cause such  additional
Registration  Statement to be declared  effective by the  Commission  as soon as
possible, but in no event later than ninety (90) days after filing.

         3.       Registration Procedures.
                  ------------------------

                  In  connection  with the  Company's  registration  obligations
hereunder, the Company shall:

                  (a)  Prepare and file with the  Commission  on or prior to the
Filing  Date, a  Registration  Statement  on Form S-2, or the  appropriate  form
required,  in accordance with the method or methods of  distribution  thereof as
specified by the Holders  (except if  otherwise  directed by the  Holders),  and
cause the  Registration  Statement to become  effective and remain  effective as
provided herein;  provided,  however,  that not less than five (5) Business Days
prior to the filing of the Registration  Statement or any related  Prospectus or
any  amendment or  supplement  thereto  (including  any  document  that would be
incorporated therein by reference), the Company shall (i) furnish to the Holders
and any  Special  Counsel,  copies of all such  documents  proposed to be filed,
which documents (other than those  incorporated by reference) will be subject to
the review of such Holders and such Special Counsel, and (ii) cause its officers
and directors,  counsel and independent  certified public accountants to respond
to such inquiries as shall be necessary, in the reasonable opinion of counsel to
such Holders,  to conduct a reasonable  investigation  within the meaning of the
Securities  Act. The Company  shall not file the  Registration  Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable Securities or any Special Counsel shall reasonably
object in writing within three (3) Business Days of their receipt thereof.

                  (b) (i) Prepare and file with the Commission such  amendments,
including  post-effective  amendments,  to the Registration  Statement as may be
necessary to keep the Registration  Statement  continuously  effective as to the
applicable  Registrable  Securities for the Effectiveness Period and prepare and
file with the Commission  such  additional  Registration  Statements in order to
register for resale under the Securities Act all of the Registrable  Securities;
(ii) cause the related  Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule  424 (or any  similar  provisions  then in  force)  promulgated  under  the
Securities  Act; (iii) respond as promptly as possible to any comments  received
from the Commission with respect to the Registration  Statement or any amendment
thereto and as promptly as possible provide the Holders true and complete copies
of all  correspondence  from and to the Commission  relating to the Registration
Statement;  and (iv) comply in all material  respects with the provisions of the
Securities  Act and the  Exchange  Act with  respect to the  disposition  of all
Registrable   Securities  covered  by  the  Registration  Statement  during  the
applicable  period in accordance with the intended methods of disposition by the
Holders thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

                                       4
<PAGE>

                  (c) Notify the Holders of  Registrable  Securities  to be sold
and any Special  Counsel as promptly  as  possible  (and,  in the case of (i)(A)
below,  not less than five (5) days prior to such  filing) and (if  requested by
any such  Person)  confirm such notice in writing no later than one (1) Business
Day following the day (i)(A) when a Prospectus or any  Prospectus  supplement or
post-effective  amendment to the Registration Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a "review" of
such Registration  Statement and whenever the Commission  comments in writing on
such Registration  Statement and (C) with respect to the Registration  Statement
or any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state  governmental  authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional  information;  (iii) of the  issuance by the  Commission  of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable  Securities or the initiation of any Proceedings for that
purpose;  (iv) if at any time any of the  representations  and warranties of the
Company  contained in any  agreement  contemplated  hereby ceases to be true and
correct in all  material  respects;  (v) of the  receipt  by the  Company of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction,  or the  initiation  or  threatening  of any  Proceeding  for such
purpose;  and (vi) of the  occurrence of any event that makes any statement made
in the  Registration  Statement or  Prospectus or any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires any revisions to the Registration  Statement,  Prospectus or other
documents so that, in the case of the Registration  Statement or the Prospectus,
as the case may be, it will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements  therein, in the light of the circumstances under which they
were made, not misleading.

                  (d) Use its best  efforts  to avoid the  issuance  of,  or, if
issued,  obtain the withdrawal of, (i) any order suspending the effectiveness of
the  Registration  Statement or (ii) any  suspension  of the  qualification  (or
exemption from  qualification) of any of the Registrable  Securities for sale in
any jurisdiction, at the earliest practicable moment.

                  (e) If  requested  by the Holders of a majority in interest of
the Registrable Securities,  (i) promptly incorporate in a Prospectus supplement
or  post-effective  amendment to the Registration  Statement such information as
the  Company  reasonably  agrees  should be  included  therein and (ii) make all
required filings of such Prospectus supplement or such post-effective  amendment
as soon as  practicable  after the  Company  has  received  notification  of the
matters to be  incorporated  in such  Prospectus  supplement  or  post-effective
amendment.

                  (f) Furnish to each Holder and any  Special  Counsel,  without
charge,  at least one  conformed  copy of each  Registration  Statement and each
amendment thereto,  including financial statements and schedules,  all documents
incorporated or deemed to be incorporated therein by reference, and all exhibits
to the extent requested by such Person (including those previously  furnished or
incorporated by reference)  promptly after the filing of such documents with the
Commission.

                                       5
<PAGE>

                  (g) Promptly  deliver to each Holder and any Special  Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably  request;  and  the  Company  hereby  consents  to the  use  of  such
Prospectus  and each  amendment  or  supplement  thereto by each of the  selling
Holders in connection with the offering and sale of the  Registrable  Securities
covered by such Prospectus and any amendment or supplement thereto.

                  (h) Prior to any public  offering of  Registrable  Securities,
use its best  efforts  to  register  or qualify or  cooperate  with the  selling
Holders  and  any  Special  Counsel  in  connection  with  the  registration  or
qualification  (or exemption from such  registration or  qualification)  of such
Registrable  Securities for offer and sale under the securities or Blue Sky laws
of such  jurisdictions  within  the  United  States as any  Holder  requests  in
writing,   to  keep  each  such  registration  or  qualification  (or  exemption
therefrom) effective during the Effectiveness Period and to do any and all other
acts or  things  necessary  or  advisable  to  enable  the  disposition  in such
jurisdictions of the Registrable Securities covered by a Registration Statement;
provided,  however,  that the Company shall not be required to qualify generally
to do business in any jurisdiction  where it is not then so qualified or to take
any  action  that would  subject  it to  general  service of process in any such
jurisdiction  where it is not then so  subject  or  subject  the  Company to any
material tax in any such jurisdiction where it is not then so subject.

                  (i)  Cooperate  with the  Holders  to  facilitate  the  timely
preparation and delivery of certificates  representing Registrable Securities to
be sold pursuant to a Registration  Statement,  which certificates shall be free
of all restrictive legends,  and to enable such Registrable  Securities to be in
such  denominations  and  registered  in such names as any Holder may request at
least two (2) Business Days prior to any sale of Registrable Securities.

                  (j) Upon the occurrence of any event  contemplated  by Section
3(c)(vi), as promptly as possible, prepare a supplement or amendment,  including
a post-effective amendment, to the Registration Statement or a supplement to the
related  Prospectus or any document  incorporated  or deemed to be  incorporated
therein  by  reference,  and file  any  other  required  document  so  that,  as
thereafter  delivered,  neither the  Registration  Statement nor such Prospectus
will contain an untrue  statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements  therein,
in the light of the circumstances under which they were made, not misleading.

                  (k) Use its best efforts to cause all  Registrable  Securities
relating to such Registration  Statement to be listed on the OTC Bulletin Board,
The Nasdaq Small-Cap Market and any other securities exchange,  quotation system
or market,  if any, on which similar  securities  issued by the Company are then
listed as and when required pursuant to the Purchase Agreement.

                  (l) Comply in all material  respects with all applicable rules
and  regulations of the Commission and make generally  available to its security
holders  earning  statements  satisfying  the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period  (or 90 days  after the end of any  12-month  period if such  period is a
fiscal  year)  commencing  on the first day of the first  fiscal  quarter of the

                                       6
<PAGE>

Company after the effective date of the Registration Statement,  which statement
shall conform to the requirements of Rule 158.

                  (m) The Company may require each selling  Holder to furnish to
the  Company  information  regarding  such Holder and the  distribution  of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement,  and the Company may exclude from such  registration  the Registrable
Securities of any such Holder who unreasonably fails to furnish such information
within a reasonable time after receiving such request.

                  If the Registration  Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the  Securities  Act or any similar  federal  statute then in
force)  the  deletion  of the  reference  to such  Holder  in any  amendment  or
supplement to the  Registration  Statement  filed or prepared  subsequent to the
time that such reference ceases to be required.

                  Each Holder covenants and agrees that (i) it will not sell any
Registrable  Securities under the  Registration  Statement until it has received
copies of the  Prospectus as then amended or  supplemented  as  contemplated  in
Section 3(g) and notice from the Company that such  Registration  Statement  and
any  post-effective  amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply  with the  prospectus  delivery  requirements  of the  Securities  Act as
applicable to them in connection with sales of Registrable  Securities  pursuant
to the Registration Statement.

                  Each  Holder  agrees by its  acquisition  of such  Registrable
Securities  that, upon receipt of a notice from the Company of the occurrence of
any  event of the kind  described  in  Section  3(c)(ii),  3(c)(iii),  3(c)(iv),
3(c)(v) or 3(c)(vi),  such Holder will forthwith discontinue disposition of such
Registrable  Securities  under the  Registration  Statement  until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement  contemplated  by Section 3(j), or until it is advised in writing (the
"Advice")  by the  Company  that  the use of the  applicable  Prospectus  may be
resumed,  and,  in  either  case,  has  received  copies  of any  additional  or
supplemental  filings  that are  incorporated  or deemed to be  incorporated  by
reference in such Prospectus or Registration Statement.

                  (n) If (i) there is material non-public  information regarding
the Company which the  Company's  Board of Directors  (the  "Board")  reasonably
determines  not to be in the  Company's  best interest to disclose and which the
Company is not  otherwise  required to disclose,  or (ii) there is a significant
business  opportunity  (including,  but  not  limited  to,  the  acquisition  or
disposition  of assets  (other than in the  ordinary  course of business) or any
merger,  consolidation,  tender offer or other similar transaction) available to
the Company  which the Board  reasonably  determines  not to be in the Company's
best  interest to disclose,  then the Company may postpone or suspend  filing or
effectiveness  of a  registration  statement  for a  period  not  to  exceed  20
consecutive  days,  provided  that the Company  may not  postpone or suspend its
obligation under this Section 3(n) for more than 30 days in the aggregate during

                                       7
<PAGE>

any 12 month period; provided,  however, that no such postponement or suspension
shall be permitted for  consecutive 20 day periods,  arising out of the same set
of facts, circumstances or transactions. This event would be deemed a default.

         4.       Registration Expenses.
                  ----------------------

                  All  fees  and  expenses  incident  to the  performance  of or
compliance  with this  Agreement  by the  Company,  except as and to the  extent
specified  in Section  4(b),  shall be borne by the  Company  whether or not the
Registration  Statement  is filed or becomes  effective  and  whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and  expenses  referred to in the  foregoing  sentence  shall  include,  without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses  (A) with respect to filings  required to be made with the OTC
Bulletin Board and each other securities exchange or market on which Registrable
Securities  are  required  hereunder  to be listed,  (B) with respect to filings
required to be made with the National  Association of Securities  Dealers,  Inc.
and the NASD  Regulation,  Inc. and (C) in compliance  with state  securities or
Blue Sky laws (including,  without limitation, fees and disbursements of counsel
for the Holders in connection  with Blue Sky  qualifications  of the Registrable
Securities and  determination  of the eligibility of the Registrable  Securities
for investment under the laws of such jurisdictions as the Holders of a majority
of Registrable  Securities may designate)),  (ii) printing expenses  (including,
without limitation, expenses of printing certificates for Registrable Securities
and of printing prospectuses if the printing of prospectuses is requested by the
holders of a majority of the Registrable Securities included in the Registration
Statement),  (iii)  messenger,  telephone and delivery  expenses,  (iv) fees and
disbursements of counsel for the Company and Special Counsel for the Holders, in
the case of the Special Counsel,  to a maximum amount of $5,000,  (v) Securities
Act liability insurance, if the Company so desires such insurance, and (vi) fees
and expenses of all other Persons retained by the Company in connection with the
consummation of the  transactions  contemplated  by this  Agreement,  including,
without limitation,  the Company's independent public accountants (including the
expenses  of any  comfort  letters  or costs  associated  with the  delivery  by
independent  public  accountants  of a comfort  letter or comfort  letters).  In
addition,  the Company  shall be  responsible  for all of its internal  expenses
incurred in connection with the consummation of the transactions contemplated by
this Agreement (including,  without limitation, all salaries and expenses of its
officers and employees  performing legal or accounting  duties),  the expense of
any annual audit, the fees and expenses  incurred in connection with the listing
of the Registrable Securities on any securities exchange as required hereunder.

         5.       Indemnification.
                  ---------------

                  (a)  Indemnification  by  the  Company.   The  Company  shall,
notwithstanding  any termination of this Agreement,  indemnify and hold harmless
each Holder,  the officers,  directors,  agents,  brokers (including brokers who
offer and sell  Registrable  Securities  as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them,  each Person who controls any such Holder (within
the meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange
Act) and the officers,  directors, agents and employees of each such controlling
Person,  to the fullest extent permitted by applicable law, from and against any
and  all  losses,  claims,  damages,  liabilities,   costs  (including,  without
limitation,   costs  of   preparation   and   attorneys'   fees)  and   expenses

                                       8
<PAGE>

(collectively,  "Losses"), as incurred, arising out of or relating to any untrue
or alleged  untrue  statement of a material fact  contained in the  Registration
Statement,  any  Prospectus  or any form of  prospectus  or in any  amendment or
supplement  thereto  or in any  preliminary  prospectus,  or  arising  out of or
relating to any omission or alleged  omission of a material  fact required to be
stated therein or necessary to make the  statements  therein (in the case of any
Prospectus  or form of prospectus  or  supplement  thereto,  in the light of the
circumstances under which they were made) not misleading,  except to the extent,
but only to the  extent,  that such untrue  statements  or  omissions  are based
solely  upon  information  regarding  such  Holder  furnished  in writing to the
Company  by  such  Holder  expressly  for use  therein,  which  information  was
reasonably  relied on by the  Company for use therein or to the extent that such
information  relates  to  such  Holder  or  such  Holder's  proposed  method  of
distribution of Registrable  Securities and was reviewed and expressly  approved
in writing by such Holder expressly for use in the Registration Statement,  such
Prospectus or such form of Prospectus or in any amendment or supplement thereto.
The Company  shall  notify the Holders  promptly of the  institution,  threat or
assertion of any Proceeding of which the Company is aware in connection with the
transactions contemplated by this Agreement.

                  (b) Indemnification by Holders.  Each Holder shall,  severally
and not  jointly,  indemnify  and hold  harmless  the  Company,  the  directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses,  as
incurred,  arising solely out of or based solely upon any untrue  statement of a
material fact contained in the Registration  Statement,  any Prospectus,  or any
form of  prospectus,  or arising solely out of or based solely upon any omission
of a  material  fact  required  to be stated  therein or  necessary  to make the
statements  therein  (in the case of any  Prospectus  or form of  prospectus  or
supplement  thereto,  in the light of the  circumstances  under  which they were
made) not misleading,  to the extent,  but only to the extent,  that such untrue
statement or omission is contained in any information so furnished in writing by
such  Holder to the  Company  specifically  for  inclusion  in the  Registration
Statement or such  Prospectus and that such  information  was reasonably  relied
upon by the Company for use in the  Registration  Statement,  such Prospectus or
such form of prospectus or to the extent that such  information  relates to such
Holder  or  such  Holder's   proposed  method  of  distribution  of  Registrable
Securities  and was  reviewed and  expressly  approved in writing by such Holder
expressly for use in the Registration Statement, such Prospectus or such form of
Prospectus.

                  (c) Conduct of Indemnification  Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity  hereunder
(an  "Indemnified  Party"),  such  Indemnified  Party  promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying  Party) in writing,  and
the  Indemnifying  Party  shall  assume  the  defense  thereof,   including  the
employment of counsel  reasonably  satisfactory to the Indemnified Party and the
payment of all fees and expenses  incurred in connection  with defense  thereof;
provided,  that the failure of any  Indemnified  Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this  Agreement,  except  (and  only) to the  extent  that it  shall be  finally
determined  by a court of competent  jurisdiction  (which  determination  is not

                                       9
<PAGE>

subject to appeal or further  review) that such failure  shall have  proximately
and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified  Party shall have the right to employ  separate
counsel in any such  Proceeding and to participate in the defense  thereof,  but
the  fees  and  expenses  of  such  counsel  shall  be at the  expense  of  such
Indemnified  Party or Parties unless:  (1) the Indemnifying  Party has agreed in
writing to pay such fees and expenses;  or (2) the Indemnifying Party shall have
failed  promptly to assume the defense of such  Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named  parties to any such  Proceeding  (including  any  impleaded  parties)
include  both  such  Indemnified  Party  and the  Indemnifying  Party,  and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified  Party
and the Indemnifying  Party (in which case, if such  Indemnified  Party notifies
the  Indemnifying  Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense  thereof and such counsel shall be at the expense of
the  Indemnifying  Party).  The  Indemnifying  Party shall not be liable for any
settlement of any such Proceeding  effected without its written  consent,  which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party,  unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

                  All fees and  expenses  of the  Indemnified  Party  (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating   or  preparing  to  defend  such   Proceeding  in  a  manner  not
inconsistent  with this  Section)  shall be paid to the  Indemnified  Party,  as
incurred,  within  ten (10)  Business  Days of  written  notice  thereof  to the
Indemnifying  Party  (regardless of whether it is ultimately  determined that an
Indemnified Party is not entitled to indemnification  hereunder;  provided, that
the  Indemnifying  Party may require  such  Indemnified  Party to  undertake  to
reimburse  all such fees and  expenses  to the extent it is  finally  judicially
determined  that  such  Indemnified  Party is not  entitled  to  indemnification
hereunder).

                  (d) Contribution. If a claim for indemnification under Section
5(a) or 5(b) is  unavailable  to an  Indemnified  Party  because of a failure or
refusal  of  a  governmental   authority  to  enforce  such  indemnification  in
accordance  with its terms (by reason of public policy or otherwise),  then each
Indemnifying  Party,  in lieu of  indemnifying  such  Indemnified  Party,  shall
contribute to the amount paid or payable by such  Indemnified  Party as a result
of such Losses,  in such  proportion as is  appropriate  to reflect the relative
fault of the  Indemnifying  Party and  Indemnified  Party in connection with the
actions,  statements  or omissions  that  resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and  Indemnified  Party shall be  determined  by reference to, among other
things,  whether any action in question,  including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material fact,
has been  taken  or made  by,  or  relates  to  information  supplied  by,  such
Indemnifying,  Party or Indemnified  Party,  and the parties'  relative  intent,
knowledge,  access to  information  and  opportunity  to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result

                                       10
<PAGE>

of any Losses shall be deemed to include,  subject to the  limitations set forth
in Section 5(c), any reasonable  attorneys' or other reasonable fees or expenses
incurred  by such party in  connection  with any  Proceeding  to the extent such
party   would  have  been   indemnified   for  such  fees  or  expenses  if  the
indemnification  provided  for in this  Section was  available  to such party in
accordance with its terms.

                  The  parties  hereto  agree  that it  would  not be  just  and
equitable if  contribution  pursuant to this Section 5(d) were determined by pro
rata  allocation  or by any other method of  allocation  that does not take into
account the equitable  considerations  referred to in the immediately  preceding
paragraph. No Person guilty of fraudulent  misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to  contribution  from
any Person who was not guilty of such fraudulent misrepresentation.

                  The indemnity and  contribution  agreements  contained in this
Section are in addition to any liability that the Indemnifying  Parties may have
to the Indemnified Parties

         6.       Rule 144.
                  --------

                  As long as any Holder owns Shares, Conversion Shares, Warrants
or Warrant Shares, the Company covenants to timely file (or obtain extensions in
respect  thereof  and file  within the  applicable  grace  period)  all  reports
required  to be filed by the Company  after the date hereof  pursuant to Section
13(a) or 15(d) of the Exchange Act and to promptly furnish the Holders with true
and  complete  copies of all such  filings.  As long as any Holder owns  Shares,
Conversion Shares, Warrants or Warrant Shares, if the Company is not required to
file reports  pursuant to Section  13(a) or 15(d) of the  Exchange  Act, it will
prepare and furnish to the Holders and make  publicly  available  in  accordance
with Rule  144(c)  promulgated  under the  Securities  Act annual and  quarterly
financial statements,  together with a discussion and analysis of such financial
statements  in form and  substance  substantially  similar  to those  that would
otherwise  be required to be  included in reports  required by Section  13(a) or
15(d) of the Exchange Act, as well as any other information required thereby, in
the time period  that such  filings  would have been  required to have been made
under the Exchange  Act. The Company  further  covenants  that it will take such
further action as any Holder may reasonably request,  all to the extent required
from time to time to enable  such Person to sell  Conversion  Shares and Warrant
Shares  without  registration  under the Securities Act within the limitation of
the  exemptions  provided  by Rule 144  promulgated  under the  Securities  Act,
including  providing any legal  opinions  relating to such sale pursuant to Rule
144. Upon the request of any Holder,  the Company shall deliver to such Holder a
written certification of a duly authorized officer as to whether it has complied
with such requirements.

                  The  Maker's  failure  to  comply  with  a  Conversion  Notice
tendered  within  five (5)  business  days after the receipt by the Maker of the
Conversion would be deemed a default of this Agreement. The Note itself does not
have to be delivered until fully paid.

                  The  Company   acknowledges   that  a  breach  by  it  of  its
obligations hereunder will cause irreparable harm to the Buyers by vitiating the

                                       11
<PAGE>

intent and purpose of the  transaction  contemplated  hereby.  Accordingly,  the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
under this Agreement will be inadequate and agrees,  in the event of a breach or
threatened  breach by the Company of the provisions of this Agreement,  that the
Buyers shall be entitled,  in addition to all other available remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or  injunctions  restraining,  preventing or curing any breach of this Agreement
and to  enforce  specifically  the  terms and  provisions  hereof,  without  the
necessity of showing  economic loss and without any bond or other security being
required.

                  If during any twelve month period, the Company fails to remove
any  legend as  required  for an  aggregate  of thirty  days,  the Holder of the
Security that the Company failed to remove the legend may at his option, require
the Company to purchase all or any portion of the legended securities at a price
equal to 120% of the higher of value that the security  could have been sold for
during that period or the price paid for such security.

         7.       Miscellaneous.
                  -------------

                  (a) Remedies.  In the event of a breach by the Company or by a
Holder,  of any of their  obligations  under this Agreement,  each Holder or the
Company,  as the case may be, in  addition to being  entitled  to  exercise  all
rights granted by law and under this Agreement,  including  recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary  damages would not provide  adequate
compensation  for any losses  incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific  performance  in respect of such breach,  it shall waive the
defense that a remedy at law would be adequate.

                  (b) No Inconsistent Agreements. Neither the Company nor any of
its  subsidiaries  has,  as of the date hereof  entered  into and  currently  in
effect,  nor shall the Company or any of its subsidiaries,  on or after the date
of this Agreement,  enter into any agreement with respect to its securities that
is  inconsistent  with the rights  granted to the Holders in this  Agreement  or
otherwise conflicts with the provisions hereof.  Except as disclosed in Schedule
2.1(c)  of  the  Purchase  Agreement,   neither  the  Company  nor  any  of  its
subsidiaries  has  previously  entered  into any  agreement  currently in effect
granting any  registration  rights with respect to any of its  securities to any
Person.  Without  limiting the generality of the foregoing,  without the written
consent  of the  Holders  of a  majority  of the  then  outstanding  Registrable
Securities,  the Company  shall not grant to any Person the right to request the
Company to register  any  securities  of the Company  under the  Securities  Act
unless the rights so granted are subject in all  respects to the prior rights in
full of the Holders set forth herein, and are not otherwise in conflict with the
provisions of this Agreement.

                  (c) No Piggyback on Registrations. Neither the Company nor any
of its security holders (other than the Holders in such capacity pursuant hereto
or as  disclosed  in  Schedule  2.1(c) of the  Purchase  Agreement)  may include
securities of the Company in the Registration  Statement,  and the Company shall
not after the date hereof enter into any agreement  providing  such right to any
of its  securityholders,  unless the right so granted is subject in all respects

                                       12
<PAGE>

to the  prior  rights  in full  of the  Holders  set  forth  herein,  and is not
otherwise in conflict with the provisions of this Agreement.

                  (d) Piggy-Back Registrations. If at any time when there is not
an  effective  Registration  Statement  covering (i)  Conversion  Shares or (ii)
Warrant  Shares,  the  Company  shall  determine  to  prepare  and file with the
Commission a registration  statement relating to an offering for its own account
or the  account  of  others  under  the  Securities  Act  of  any of its  equity
securities,  other than on Form S-4 or Form S-8 (each as  promulgated  under the
Securities Act) or their then  equivalents  relating to equity  securities to be
issued solely in connection  with any  acquisition  of any entity or business or
equity  securities  issuable in connection  with stock option or other  employee
benefit plans,  the Company shall send to each holder of Registrable  Securities
written  notice of such  determination  and,  if within  thirty  (30) days after
receipt of such  notice,  any such holder  shall so request in  writing,  (which
request shall specify the Registrable  Securities  intended to be disposed of by
the Purchaser), the Company will cause the registration under the Securities Act
of all  Registrable  Securities  which  the  Company  has been so  requested  to
register by the holder, to the extent requisite to permit the disposition of the
Registrable  Securities so to be registered,  provided that if at any time after
giving  written  notice of its intention to register any securities and prior to
the effective date of the  registration  statement filed in connection with such
registration,  the Company shall  determine for any reason not to register or to
delay  registration of such securities,  the Company may, at its election,  give
written notice of such determination to such holder and,  thereupon,  (i) in the
case of a determination not to register,  shall be relieved of its obligation to
register any Registrable  Securities in connection with such  registration  (but
not from its  obligation to pay expenses in  accordance  with Section 4 hereof),
and (ii) in the case of a determination to delay registering, shall be permitted
to delay  registering any Registrable  Securities being  registered  pursuant to
this  Section  7(d) for the same period as the delay in  registering  such other
securities.  The Company shall include in such registration statement all or any
part of such  Registrable  Securities  such holder  requests  to be  registered;
provided,  however,  that the Company  shall not be  required  to  register  any
Registrable  Securities pursuant to this Section 7(d) that are eligible for sale
pursuant to Rule 144(k) of the  Securities  Act. In the case of an  underwritten
public  offering,  if  the  managing  underwriter(s)  or  underwriter(s)  should
reasonably  object  to the  inclusion  of the  Registrable  Securities  in  such
registration statement, then if the Company after consultation with the managing
underwriter  should reasonably  determine that the inclusion of such Registrable
Securities,  would materially adversely affect the offering contemplated in such
registration statement,  and based on such determination recommends inclusion in
such  registration  statement of fewer or none of the Registrable  Securities of
the  Holders,  then (x) the  number of  Registrable  Securities  of the  Holders
included in such  registration  statement  shall be reduced  pro-rata among such
Holders  (based  upon the  number  of  Registrable  Securities  requested  to be
included  in the  registration),  if the  Company  after  consultation  with the
underwriter(s)  recommends the inclusion of fewer Registrable Securities, or (y)
none of the  Registrable  Securities  of the  Holders  shall be included in such
registration   statement,   if  the   Company   after   consultation   with  the
underwriter(s)  recommends the inclusion of none of such Registrable Securities;
provided, however, that if Securities are being offered for the account of other
persons or entities as well as the Company, such reduction shall not represent a
greater fraction of the number of Registrable  Securities intended to be offered
by the Holders  than the  fraction of similar  reductions  imposed on such other
persons or entities (other than the Company).

                                       13
<PAGE>

                  (e) Failure to File  Registration  Statement and Other Events.
The Company and the Purchaser  agree that the Holders will suffer damages if the
Registration  Statement  is not  filed on or prior  to the  Filing  Date and not
declared  effective  by the  Commission  on or prior to the  Effectiveness  Date
(subject to the Company  meeting its  commitment to respond to all comments in a
reasonable  timely  manner) and  maintained  in the manner  contemplated  herein
during the Effectiveness  Time or if certain other events occur. The Company and
the Holders  further agree that it would not be feasible to ascertain the extent
of such damages with precision.  Accordingly,  if (A) the Registration Statement
is not filed on or prior to the Filing Date, or is not declared effective by the
Commission on or prior to the Effectiveness  Date (or in the event an additional
Registration  Statement is filed  because the actual  number of shares of Common
Stock into which the Notes are  convertible  and the  Warrants  are  exercisable
exceeds the number of shares of Common Stock  initially  registered is not filed
and declared  effective with the time periods set forth in Section 2(a)), or (B)
the Company  fails to file with the  Commission  a request for  acceleration  in
accordance  with Rule 12d-2  promulgated  under the Exchange Act within five (5)
Business  Days of the date that the Company is  notified  (orally or in writing,
whichever is earlier) by the Commission  that a Registration  Statement will not
be  "reviewed,"  or not  subject  to  further  review,  or (C) the  Registration
Statement is filed with and declared  effective by the Commission but thereafter
ceases to be effective as to all Registrable Securities at any time prior to the
expiration of the Effectiveness Period, without being succeeded immediately by a
subsequent  Registration  Statement  filed with and  declared  effective  by the
Commission,  or (D)  trading in the Common  Stock shall be  suspended  or if the
Common  Stock is delisted  from the OTC Bulletin  Board or The Nasdaq  Small-Cap
Market for any reason for more than three Business Days in the aggregate,  or or
(E) the Company  breaches in a material  respect any covenant or other  material
term or  condition  to this  Agreement,  the  Certificate  of  Designation,  the
Purchase  Agreement (other than a representation or warranty  contained therein)
or any other agreement,  document,  certificate or other instrument delivered in
connection  with the  transactions  contemplated  hereby and  thereby,  and such
breach continues for a period of thirty days after written notice thereof to the
Company,  or (G) the  Company has  breached  Section  3(n) (any such  failure or
breach being  referred to as an "Event," and for purposes of clauses (A) and (E)
the date on which such Event  occurs,  or for purposes of clause (B) the date on
which such five day period is exceeded, or for purposes of clause (C) after more
than fifteen Business Days, or for purposes of clause (D) the date on which such
three Business Day period is exceeded,  or for clause (F) the date on which such
thirty day period is exceeded,  being referred to as "Event Date"),  the Company
shall pay,  at the option of the  Holder,  an amount in cash or shares of Common
Stock,  as liquidated  damages to each Holder equal to 1% for the first calendar
month and 2% per calendar month  thereafter or portion  thereof of the principal
amount of the Notes held by such Holder plus the  principal  amount of any Notes
that have been converted to the extent any of the Conversion  Shares issued upon
such  conversion  have not been sold from the Event  Date  until the  applicable
Event is cured.  Payments to be made  pursuant to this Section  7(e)(i) shall be
due and payable  immediately upon demand in immediately  available funds. If the
Holder elects to be paid in shares of Common Stock, the number of such shares of
Common  Stock  shall be based on the  liquidated  damage  amount  divided by the
Conversion Rate (as defined in the Note).

                                       14
<PAGE>

                  (f) Amendments and Waivers.  The provisions of this Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the same shall be in writing and signed by the Company
and each of the Holders.  Notwithstanding the foregoing,  a waiver or consent to
depart  from  the  provisions  hereof  with  respect  to a matter  that  relates
exclusively  to the rights of Holders and that does not  directly or  indirectly
affect  the  rights  of other  Holders  may be given  by  Holders  of at least a
majority of the Registrable  Securities to which such waiver or consent relates;
provided,  however,  that the  provisions  of this  sentence may not be amended,
modified,  or  supplemented  except in  accordance  with the  provisions  of the
immediately preceding sentence.

                  (g) Notices.  Any and all notices or other  communications  or
deliveries  required or permitted to be provided  hereunder  shall be in writing
and  shall be deemed  given  and  effective  on the  earlier  of (i) the date of
transmission,  if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice prior to 5:00 p.m., Atlanta City
time, on a Business  Day, (ii) the Business Day after the date of  transmission,
if such notice or  communication  is delivered  via  facsimile at the  facsimile
telephone number  specified for notice later than 5:00 p.m.,  Atlanta City time,
on any date and earlier than 11:59 p.m.,  Atlanta City time, on such date, (iii)
the Business Day following the date of mailing, if sent by nationally recognized
overnight  courier  service  or (iv)  actual  receipt  by the party to whom such
notice is required to be given. The addresses for such  communications  shall be
with  respect to each Holder at its address set forth under its name on Schedule
1 attached hereto, or with respect to the Company, addressed to:

                          Armitec, Inc.
                          4479 Atlanta Road
                          Smyrna, Georgia 30080
                          Attention:  Chief Executive Officer
                          Telephone No.: (404) 261-8944
                          Facsimile No.: (404) 842-9418

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have  designated in writing to the other parties  hereto
by such  notice.  Copies of notices to the  Company  shall be sent to  Greenberg
Traurig,  LLP,  Attn:  Robert E.  Altenbach,  3290 Northside  Parkway,  Atlanta,
Georgia, 30327, Facsimile No.: (678) 553-2188.

                  (h)  Successors and Assigns.  This Agreement  shall be binding
upon and inure to the benefit of the parties and their  successors and permitted
assigns and shall inure to the  benefit of each  Holder and its  successors  and
assigns.  The  Company  may not assign  this  Agreement  or any of its rights or
obligations  hereunder  without the prior  written  consent of each Holder.  The
Purchaser  may assign its rights  hereunder  in the manner and to the Persons as
permitted under the Purchase Agreement.

                  (i)  Assignment  of  Registration  Rights.  The rights of each
Holder  hereunder,  including the right to have the Company  register for resale
Registrable Securities in accordance with the terms of this Agreement,  shall be
automatically  assignable  by each Holder to any Affiliate of such Holder or any

                                       15
<PAGE>

other  Holder or  Affiliate of any other Holder of all or a portion of the Notes
or the  Registrable  Securities  if: (i) the Holder  agrees in writing  with the
transferee  or assignee to assign such rights,  and a copy of such  agreement is
furnished to the Company within a reasonable  time after such  assignment,  (ii)
the Company is,  within a  reasonable  time after such  transfer or  assignment,
furnished with written notice of (a) the name and address of such  transferee or
assignee,  and (b) the securities with respect to which such registration rights
are being  transferred or assigned,  (iii) following such transfer or assignment
the further  disposition  of such  securities by the  transferee or assignees is
restricted  under the Securities Act and applicable  state securities laws, (iv)
at or before the time the Company  receives the written notice  contemplated  by
clause (ii) of this Section,  the transferee or assignee  agrees in writing with
the Company to be bound by all of the provisions of this Agreement, and (v) such
transfer shall have been made in accordance with the applicable  requirements of
the Purchase Agreement.  In addition, each Holder shall have the right to assign
its rights  hereunder to any other Person with the prior written  consent of the
Company,  which  consent  shall  not be  unreasonably  withheld.  The  rights to
assignment  shall  apply  to the  Holders  (and to  subsequent)  successors  and
assigns.

                  (j) Counterparts. This Agreement may be executed in any number
of  counterparts,  each of  which  when so  executed  shall be  deemed  to be an
original  and, all of which taken  together  shall  constitute  one and the same
Agreement.   In  the  event  that  any   signature  is  delivered  by  facsimile
transmission,  such  signature  shall create a valid  binding  obligation of the
party  executing  (or on whose behalf such  signature is executed) the same with
the same  force and  effect as if such  facsimile  signature  were the  original
thereof.

                  (k)  Governing  Law. This  Agreement  shall be governed by and
construed in accordance  with the laws of the State of New York,  without regard
to principles of conflicts of law thereof.

                  (l)  Cumulative  Remedies.  The remedies  provided  herein are
cumulative and not exclusive of any remedies provided by law.

                  (m)  Severability.   If  any  term,  provision,   covenant  or
restriction  of  this  Agreement  is  held  to  be  invalid,  illegal,  void  or
unenforceable in any respect, the remainder of the terms, provisions,  covenants
and  restrictions  set forth  herein  shall  remain in full force and effect and
shall in no way be affected,  impaired or  invalidated,  and the parties  hereto
shall use their  reasonable  efforts to find and employ an alternative  means to
achieve the same or substantially  the same result as that  contemplated by such
term, provision,  covenant or restriction.  It is hereby stipulated and declared
to be the  intention of the parties that they would have  executed the remaining
terms, provisions, covenants and restrictions without including any of such that
may be hereafter declared invalid, illegal, void or unenforceable.

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

                  (o) Shares Held by the Company  and its  Affiliates.  Whenever
the  consent or approval of Holders of a  specified  percentage  of  Registrable
Securities is required hereunder,  Registrable Securities held by the Company or
its  Affiliates  (other than any Holder or  transferees or successors or assigns

                                       16
<PAGE>

thereof  if such  Holder is deemed  to be an  Affiliate  solely by reason of its
holdings of such  Registrable  Securities)  shall not be counted in  determining
whether  such  consent or  approval  was given by the  Holders of such  required
percentage.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Registration Rights Agreement to be duly executed by their respective authorized
persons as of the date first indicated above.

                                        Armitec Inc.

                                        By:_____________________________________
                                           Name:  Bruce R. Davis
                                           Title:   Chief Executive Officer

                                        FILTER INTERNATIONAL, LTD.

                                        By:_____________________________________
                                           Name:
                                           Title:

                                       18
<PAGE>

                                   Schedule I
                                   ----------

Filter International, Ltd.
P.O. Box 43272
Harnoff Jerusalem
Fax No.: 011 972 2653 6272

                                       19
<PAGE>

                                   Schedule II
                                   -----------

                                       20

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