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                                                                   EXHIBIT 10.21

                                                                  EXECUTION COPY

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER REGULATION D PROMULGATED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") OR OTHERWISE. THIS WARRANT SHALL NOT
CONSTITUTE AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES
IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE
SECURITIES ARE "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS
PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

                          COMMON STOCK PURCHASE WARRANT

No. PW1

              To Purchase Shares of $.001 Par Value Common Stock of

                                  ZYMETX, INC.

         THIS CERTIFIES that, for value received, Palladin Opportunity Fund, LLC
(the "INVESTOR") is entitled, upon the terms and subject to the conditions
hereinafter set forth, at any time on or after the date hereof and on or prior
to 5:00 p.m. New York City Time on October 12, 2005 (the "TERMINATION DATE"),
but not thereafter, to subscribe for and purchase from ZYMETX, INC., a Delaware
corporation (the "COMPANY"), 90,000 shares of Common Stock of the Company (the
"WARRANT SHARES"). The "EXERCISE PRICE" is $3.16875. The Exercise Price and the
number of shares for which the Warrant is exercisable shall be subject to
adjustment as provided herein. This Warrant is being issued in connection with
the Purchase Agreement dated October 13, 2000 (the "AGREEMENT") entered into
between the Company and the Investor.

1.       Title of Warrant. Prior to the expiration hereof and subject to
         compliance with applicable laws, this Warrant and all rights hereunder
         are transferable, in whole or in respect of the right to purchase any
         part of the Warrant Shares, at the office or agency of the Company by
         the holder hereof in person or by duly authorized attorney, upon
         surrender of this Warrant together with (a) the Assignment Form annexed
         hereto properly endorsed, and (b) any other documentation reasonably
         necessary to satisfy the Company that such transfer is in compliance
         with all applicable securities laws.

2.       Authorization of Shares. The Company covenants that all shares of
         Common Stock which may be issued upon the exercise of rights
         represented by this Warrant will, upon exercise of the rights
         represented by this Warrant and payment of the Exercise Price as set
         forth herein will be duly authorized, validly issued, fully paid and
         nonassessable and free from all taxes, liens and charges in respect of
         the issue thereof (other than taxes in respect of any transfer
         occurring contemporaneously with such issue or otherwise specified
         herein).

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3.       Exercise of Warrant.

(a)      Exercise of the purchase rights represented by this Warrant may be made
         at any time or times, in whole or in part before the close of business
         on the Termination Date, or such earlier date on which this Warrant may
         terminate as provided in paragraph 11 below, by the surrender on any
         business day of this Warrant and the Notice of Exercise annexed hereto
         duly completed and executed, at the principal office of the Company (or
         such other office or agency of the Company as it may designate by
         notice in writing to the registered holder hereof at the address of
         such holder appearing on the books of the Company), together with
         delivery to the Company by such holder of all certifications or
         documentation reasonably necessary to establish, to the satisfaction of
         the Company, that any such exercise has been undertaken in compliance
         with all applicable federal and state securities laws, and upon payment
         of the full Exercise Price of the shares thereby purchased; whereupon
         the holder of this Warrant shall be entitled to receive a certificate
         for the number of shares of Common Stock so purchased. Certificates for
         shares purchased hereunder shall be delivered to the holder hereof
         within three (3) Trading Days after the date on which this Warrant
         shall have been exercised as aforesaid. Payment of the Exercise Price
         of the shares shall be by certified check or cashier's check or by wire
         transfer (of same day funds) to an account designated by the Company in
         an amount equal to the Exercise Price multiplied by the number of
         shares being purchased.

(b)      Alternatively, the Warrant holder may exercise this Warrant, in whole
         or in part in a "cashless" or "net-issue" exercise by delivering to the
         offices of the Company or any transfer agent for the Common Stock this
         Warrant, together with a Notice of Exercise specifying the number of
         Warrant Shares to be delivered to such Warrant holder ("DELIVERABLE
         SHARES") and the number of Warrant Shares with respect to which this
         Warrant is being exercised ("EXERCISED SHARES").

         The number of Deliverable Shares shall be calculated as follows:

         # of Deliverable Shares = # of Exercised Shares
                      x Fair Market Value of Common Stock less Exercise Price
                      -------------------------------------------------------
                                Fair Market Value of Common Stock

         "FAIR MARKET VALUE" shall have the meaning specified in Section 13(c)

         In the event that the Warrant is not exercised in full, the number of
         Warrant Shares shall be reduced by the number of such Warrant Shares
         for which this Warrant is exercised and/or surrendered, and the
         Company, at its expense, shall within three (3) Trading Days issue and
         deliver to or upon the order of the Warrant holder a new Warrant of
         like tenor in the name of Warrant holder or such other name as Warrant
         holder (upon payment by Warrant holder of any applicable transfer
         taxes) may request, reflecting such adjusted Warrant Shares.

         All exercises will be deemed to occur as of the date of the Notice of
         Exercise, and certificates for shares of Common Stock purchased
         hereunder shall be delivered to the holder hereof within three (3)
         Trading Days after the date on which this Warrant shall

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         have been exercised as aforesaid. The Warrant holder may withdraw its
         Notice of Exercise under Section 3(a) or 3(b) at any time thereafter if
         the Company fails to timely deliver the applicable certificates to the
         Warrant holder as provided in this Agreement.

(c)      In lieu of delivering physical certificates representing the Common
         Stock issuable upon exercise, provided the Company's transfer agent is
         participating in the Depository Trust Company ("DTC") Fast Automated
         Securities Transfer ("FAST") program, upon request of the Warrant
         holder, the Company shall use its best efforts to cause its transfer
         agent to electronically transmit the Common Stock issuable upon
         exercise to the Warrant holder by crediting the account of Warrant
         holder's prime broker with DTC through its Deposit Withdrawal Agent
         Commission ("DWAC") system. The time periods for delivery described in
         the immediately preceding paragraph shall apply to the electronic
         transmittals described herein.

         The term "TRADING DAY" means (x) if the Common Stock is listed on the
         New York Stock Exchange or the American Stock Exchange, a day on which
         there is trading on such stock exchange, or (y) if the Common Stock is
         not listed on either of such stock exchanges but sale prices of the
         Common Stock are reported on an automated quotation system, a day on
         which trading is reported on the principal automated quotation system
         on which sales of the Common Stock are reported, or (z) if the
         foregoing provisions are inapplicable, a day on which quotations are
         reported by National Quotation Bureau Incorporated.

4.       No Fractional Shares or Scrip. No fractional shares or scrip
         representing fractional shares shall be issued upon the exercise of
         this Warrant.

5.       Charges, Taxes and Expenses. Issuance of certificates for shares of
         Common Stock upon the exercise of this Warrant shall be made without
         charge to the holder hereof for any issue or transfer tax or other
         incidental expense in respect of the issuance of such certificate, all
         of which taxes and expenses shall be paid by the Company, and such
         certificates shall be issued in the name of the holder of this Warrant
         or in such name or names as may be directed by the holder of this
         Warrant; provided, however, that in the event certificates for shares
         of Common Stock are to be issued in a name other than the name of the
         holder of this Warrant, this Warrant when surrendered for exercise
         shall be accompanied by the Assignment Form attached hereto duly
         executed by the holder hereof; and provided further, that the Company
         shall not be required to pay any tax or taxes which may be payable in
         respect of any transfer involved in the issuance of any Warrant
         certificates or any certificates for the Warrant Shares other than the
         issuance of a Warrant Certificate to the Investor in connection with
         the Investor's surrender of a Warrant Certificate upon the exercise of
         less than all of the Warrants evidenced thereby, and the Company shall
         not be required to issue or deliver such certificates unless or until
         the person or persons requesting the issuance thereof shall have paid
         to the Company the amount of such tax or shall have established to the
         satisfaction of the Company that such tax has been paid.

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6.       Closing of Books. The Company will at no time close its stockholder
         books or records in any manner which interferes with the timely
         exercise of this Warrant.

7.       No Rights as Stockholder until Exercise. Subject to Section 12 of this
         Warrant and the provisions of any other written agreement between the
         Company and the Investor, the Investor shall not be entitled to vote or
         receive dividends or be deemed the holder of Warrant Shares or any
         other securities of the Company that may at any time be issuable on the
         exercise hereof for any purpose, nor shall anything contained herein be
         construed to confer upon the Investor, as such, any of the rights of a
         stockholder of the Company or any right to vote for the election of
         directors or upon any matter submitted to stockholders at any meeting
         thereof, or to give or withhold consent to any corporate action
         (whether upon any recapitalization, issuance of stock, reclassification
         of stock, change of par value, or change of stock to no par value,
         consolidation, merger, conveyance or otherwise) or to receive notice of
         meetings, or to receive dividends or subscription rights or otherwise
         until the Warrant shall have been exercised as provided herein.
         However, at the time of the exercise of this Warrant pursuant to
         Section 3 hereof, the Warrant Shares so purchased hereunder shall be
         deemed to be issued to such holder as the record owner of such shares
         as of the close of business on the date on which this Warrant shall
         have been exercised.

8.       Assignment and Transfer of Warrant. This Warrant may be assigned in
         whole or in part by the surrender of this Warrant and the Assignment
         Form annexed hereto duly executed at the office of the Company (or such
         other office or agency of the Company as it may designate by notice in
         writing to the registered holder hereof at the address of such holder
         appearing on the books of the Company); provided, however, that this
         Warrant may not be resold or otherwise transferred except (i) in a
         transaction registered under the Securities Act of 1933, as amended
         (the "ACT"), or (ii) in a transaction pursuant to an exemption, if
         available, from registration under the Act and whereby, if requested by
         the Company, an opinion of counsel reasonably satisfactory to the
         Company is obtained by the holder of this Warrant to the effect that
         the transaction is so exempt.

9.       Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
         Company of evidence reasonably satisfactory to it of the loss, theft,
         destruction or mutilation of any Warrant or stock certificate
         representing the Warrant Shares, and in case of loss, theft or
         destruction, of indemnity reasonably satisfactory to it, and upon
         reimbursement to the Company of all reasonable expenses incidental
         thereto (and upon surrender and cancellation of such Warrant or stock
         certificate, if mutilated), the Company will make and deliver a new
         Warrant or stock certificate of like tenor and dated as of such receipt
         or cancellation, in lieu of this Warrant or such stock certificate.

10.      Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
         taking of any action or the expiration of any right required or granted
         herein shall be a Saturday, Sunday or a legal holiday, then such action
         may be taken or such right may be exercised on the next succeeding day
         not a legal holiday.

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11.      Change in Control Transaction.

(a)      If at any time there occurs any Change in Control Transaction, the
         holder of this Warrant shall be entitled, at its sole option, to have
         the Company redeem this Warrant in whole or in part at the applicable
         Premium Redemption Price (as defined in the Registration Rights
         Agreement). Such holder shall be entitled to make such election at any
         time upon a Public Announcement of a pending, and up to ten (10) days
         after the effective date of a, Change in Control Transaction.

                  "CHANGE IN CONTROL TRANSACTION" shall mean the occurrence of
         (i) any consolidation or merger of the Company with or into any other
         corporation or other entity or person (whether or not the Company is
         the surviving corporation), or any other corporate reorganization or
         transaction or series of related transactions in which in excess of 50%
         of the Company's voting power is transferred through a merger,
         consolidation, tender offer or similar transaction; or (ii) any person
         (as defined in Section 13(d) of the Securities Exchange Act of 1934, as
         amended (the "EXCHANGE ACT")), together with its affiliates and
         associates (as such terms are defined in Rule 405 under the Act),
         beneficially owns or is deemed to beneficially own (as described in
         Rule 13d-3 under the Exchange Act without regard to the 60-day exercise
         period) in excess of 50% of the Company's voting power; (iii) there is
         a replacement of more than one-half of the members of the Company's
         Board of Directors which is not approved by those individuals who are
         members of the Company's Board of Directors on the date thereof; or
         (iv) in one or a series of related transactions there is a sale or
         transfer of all or substantially all of the assets of the Company,
         determined on a consolidated basis.

                  "PUBLIC ANNOUNCEMENT" shall mean any public filing with the
         Securities and Exchange Commission, any press release by either the
         Company or a third party or any other public statement, that announces
         a proposed transaction which, if consummated, would constitute a Change
         in Control Transaction.

(b)      If at any time there occurs a Public Announcement of a pending Change
         in Control Transaction in which the public stockholders of the Company
         are to receive consideration, a portion of which is capital stock or
         any security convertible into capital stock of another entity in
         exchange for shares of Common Stock ("CHANGE IN CONTROL
         CONSIDERATION"), then prompt provision shall be made in a manner
         reasonably acceptable to the holders so that each holder shall have the
         right (in addition to its other rights under this Warrant and the other
         Transaction Documents) following such Public Announcement to:

         (i) convert its Warrants into the Change in Control Consideration that
such holder would have been or would be entitled to receive had it exercised all
of its Warrants into Common Stock (notwithstanding any restrictions imposed upon
the holder pursuant to this Warrant, the Debenture or the Purchase Agreement in
its ability to do so) immediately prior to the Change in Control Transaction at
the Change in Control Exercise Price (as defined below), and acquired the Change
in Control Consideration as a stockholder of the Company; or

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         (ii) exercise its Warrants into Common Stock at the Change in Control
Exercise Price (as defined below).

                  The "CHANGE IN CONTROL EXERCISE PRICE" shall mean a price,
         subject to adjustments in the same manner as adjustments to the
         Exercise Price, equal to the lesser of: (i) the then existing Exercise
         Price; (ii) 100% of the lowest Market Price for Shares of Common Stock
         for any of the four (4) Trading Days immediately preceding the Public
         Announcement of the Change in Control Transaction; and (iii) 85% of the
         lowest Market Price for Shares of Common Stock on (A) the Trading Day
         on which there was a Public Announcement of the Change in Control
         Transaction and the two (2) Trading Days thereafter or (B) in the event
         that the Public Announcement did not occur on a Trading Day, the three
         (3) Trading Days immediately following the Public Announcement. The
         Market Price for Shares of Common Stock shall be appropriately adjusted
         for stock splits, reverse splits, stock dividends and other dilutive
         events, including those events occurring in connection with the Change
         in Control Transaction, that occur during the Trading Days referred to
         above.

12.      Effect of Certain Events. If at any time while this Warrant or any
         portion thereof is outstanding and unexpired there shall be (i) a sale
         or conveyance of all or substantially all of the Company's assets or
         (ii) a transaction (by merger or otherwise) in which more than 50% of
         the voting power of the Company is disposed of (collectively, a "SALE
         OR MERGER TRANSACTION"), in which the consideration to be received by
         the Company or its stockholders consists solely of cash, and in case
         the Company shall at any time effect a Sale or Merger Transaction in
         which the consideration to be received by the Company or its
         stockholders consists in part of consideration other than cash, the
         holder of this Warrant shall have the right thereafter to purchase, by
         exercise of this Warrant and payment of the aggregate Exercise Price in
         effect immediately prior to such action, the kind and amount of shares
         and other securities and property which it would have owned or have
         been entitled to receive after the happening of such transaction had
         this Warrant been exercised immediately prior thereto, subject to
         further adjustment as provided in Section 13. Notwithstanding the
         above, a Sale or Merger Transaction shall not be deemed to occur in the
         event the Company is the acquiring entity in connection with an
         acquisition by the Company.

13.      Adjustments of Exercise Price and Number of Warrant Shares.

         The number of and kind of securities purchasable upon exercise of this
         Warrant and the Exercise Price shall be subject to adjustment from time
         to time as follows:

(a)      Subdivisions, Combinations and other Issuances. If the Company shall at
         any time after the date hereof but prior to the expiration of this
         Warrant subdivide its outstanding securities as to which purchase
         rights under this Warrant exist, by split-up, spin-off, or otherwise,
         or combine its outstanding securities as to which purchase rights under
         this Warrant exist, the number of Warrant Shares as to which this
         Warrant is exercisable as of the date of such subdivision, split-up,
         spin-off or combination shall forthwith be

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         proportionately increased in the case of a subdivision, or
         proportionately decreased in the case of a combination. Appropriate
         proportional adjustments (decrease in the case of subdivision, increase
         in the case of combination) shall also be made to the Exercise Price
         payable per share, so that the aggregate Exercise Price payable for the
         total number of Warrant Shares purchasable under this Warrant as of
         such date shall remain the same as it would have been before such
         subdivision or combination.

(b)      Stock Dividend. If at any time after the date hereof the Company
         declares a dividend or other distribution on Common Stock payable in
         Common Stock or other securities or rights convertible into Common
         Stock ("COMMON STOCK EQUIVALENTS") without payment of any consideration
         by holders of Common Stock for the additional shares of Common Stock or
         the Common Stock Equivalents (including the additional shares of Common
         Stock issuable upon exercise or conversion thereof), then the number of
         shares of Common Stock for which this Warrant may be exercised shall be
         increased as of the record date (or the date of such dividend
         distribution if no record date is set) for determining which holders of
         Common Stock shall be entitled to receive such dividends, in proportion
         to the increase in the number of outstanding shares (and shares of
         Common Stock issuable upon conversion of all such securities
         convertible into Common Stock) of Common Stock as a result of such
         dividend, and the Exercise Price shall be proportionately reduced so
         that the aggregate Exercise Price for all the Warrant Shares issuable
         hereunder immediately after the record date (or on the date of such
         distribution, if applicable), for such dividend shall equal the
         aggregate Exercise Price so payable immediately before such record date
         (or on the date of such distribution, if applicable).

(c)      Other Distributions. If at any time after the date hereof the Company
         distributes to holders of its Common Stock, other than as part of its
         dissolution, liquidation or the winding up of its affairs, any shares
         of its capital stock, any evidence of indebtedness or any of its assets
         (other than Common Stock), then the number of Warrant Shares for which
         this Warrant is exercisable shall be increased to equal: (i) the number
         of Warrant Shares for which this Warrant is exercisable immediately
         prior to such event, (ii) multiplied by a fraction, (A) the numerator
         of which shall be the Fair Market Value (as defined below) per share of
         Common Stock on the record date for the dividend or distribution, and
         (B) the denominator of which shall be the Fair Market Value price per
         share of Common Stock on the record date for the dividend or
         distribution minus the amount allocable to one share of Common Stock of
         the value (as jointly determined in good faith by the Board of
         Directors of the Company and the Warrant holder) of any and all such
         evidences of indebtedness, shares of capital stock, other securities or
         property, so distributed. For purposes of this Warrant, "FAIR MARKET
         VALUE" shall equal the ten (10) Trading Day average closing trading
         price of the Common Stock on the Principal Market for the ten (10)
         Trading Days preceding the date of determination or, if the Common
         Stock is not listed or admitted to trading on any Principal Market, the
         average of the closing bid and asked prices on the over-the-counter
         market as furnished by any New York Stock Exchange member firm
         reasonably selected from time to time by the Company for that purpose
         and reasonably acceptable to the Holder, or, if the Common Stock is not
         listed or admitted to trading on the Principal Market or traded
         over-the-

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         counter and the average price cannot be determined as contemplated
         above, the Fair Market Value of the Common Stock shall be as reasonably
         determined in good faith by the Company's Board of Directors with the
         concurrence of the Holder. The Exercise Price shall be reduced to
         equal: (i) the Exercise Price in effect immediately before the
         occurrence of any event (ii) multiplied by a fraction, (A) the
         numerator of which is the number of Warrant Shares for which this
         Warrant is exercisable immediately before the adjustment, and (B) the
         denominator of which is the number of Warrant Shares for which this
         Warrant is exercisable immediately after the adjustment.

(d)      Merger, etc. If at any time after the date hereof there shall be a
         merger or consolidation of the Company with or into or a transfer of
         all or substantially all of the assets of the Company to another
         entity, then the Warrant holder shall be entitled to receive upon or
         after such transfer, merger or consolidation becoming effective, and
         upon payment of the Exercise Price then in effect, the number of shares
         or other securities or property of the Company or of the successor
         corporation resulting from such merger or consolidation, which would
         have been received by Warrant holder for the shares of stock subject to
         this Warrant had this Warrant been exercised just prior to such
         transfer, merger or consolidation becoming effective or to the
         applicable record date thereof, as the case may be. The Company will
         not merge or consolidate with or into any other corporation, or sell or
         otherwise transfer its property, assets and business substantially as
         an entirety to another corporation, unless the corporation resulting
         from such merger or consolidation (if not the Company), or such
         transferee corporation, as the case may be, shall expressly assume in
         writing the due and punctual performance and observance of each and
         every covenant and condition of this Warrant to be performed and
         observed by the Company.

(e)      Reclassification, etc. If at any time after the date hereof there shall
         be a reorganization or reclassification of the securities as to which
         purchase rights under this Warrant exist into the same or a different
         number of securities of any other class or classes, then the Warrant
         holder shall thereafter be entitled to receive upon exercise of this
         Warrant, during the period specified herein and upon payment of the
         Exercise Price then in effect, the number of shares or other securities
         or property resulting from such reorganization or reclassification,
         which would have been received by the Warrant holder for the shares of
         stock subject to this Warrant had this Warrant at such time been
         exercised.

(f)      Exercise Price Adjustment. In the event that the Company issues or
         sells any Common Stock or securities which are convertible into or
         exchangeable for its Common Stock or any convertible securities, or any
         warrants or other rights to subscribe for or to purchase or any options
         for the purchase of its Common Stock or any such convertible securities
         (other than shares or options issued or which may be issued pursuant to
         (i) the Company's current or future employee, director or bona fide
         consultant option plans or (ii) arrangements with the Investor) (an
         "INDICATED ISSUANCE"), at an effective issuance or exercise price per
         share which is less than the Fair Market Value, then the Exercise Price
         in effect immediately prior to such issue or sale shall be reduced
         effective concurrently with such issue or sale to an amount determined
         by multiplying the Exercise Price then in effect by a fraction, (x) the
         numerator of which shall be the sum of (1) the number of shares of
         Common Stock

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         outstanding immediately prior to such issue or sale, plus (2) the
         number of shares of Common Stock which the aggregate consideration
         received by the Company for such additional shares would purchase at
         such Exercise Price then in effect; and (y) the denominator of which
         shall be the number of shares of Common Stock of the Company
         outstanding immediately after such issue or sale. In the event the
         Company makes an Indicated Issuance at an effective issuance or
         exercise price which is less than the Exercise Price then in effect,
         then the Exercise Price shall be adjusted downward to equal such lower
         issuance or exercise price concurrently with such Indicated Issuance.

         For the purposes of the foregoing adjustment, in the case of the
         issuance of any convertible securities, warrants, options or other
         rights to subscribe for or to purchase or exchange for, shares of
         Common Stock ("CONVERTIBLE SECURITIES"), the maximum number of shares
         of Common Stock issuable upon exercise, exchange or conversion of such
         Convertible Securities shall be deemed to be outstanding, provided that
         no further adjustment shall be made upon the actual issuance of Common
         Stock upon exercise, exchange or conversion of such Convertible
         Securities.

         The number of shares which may be purchased hereunder shall be
         increased proportionately to any reduction in Exercise Price pursuant
         to this paragraph 13(f), so that after such adjustments the aggregate
         Exercise Price payable hereunder for the increased number of shares
         shall be the same as the aggregate Exercise Price in effect just prior
         to such adjustments.

14.      Voluntary Adjustment by the Company. The Company may at its option, at
         any time during the term of this Warrant, reduce but not increase the
         then current Exercise Price to any amount and for any period of time
         deemed appropriate by the Board of Directors of the Company.

15.      Notice of Adjustment. Whenever the number of Warrant Shares or number
         or kind of securities or other property purchasable upon the exercise
         of this Warrant or the Exercise Price is adjusted, the Company shall
         promptly mail to the holder of this Warrant a notice setting forth the
         number of Warrant Shares (and other securities or property) purchasable
         upon the exercise of this Warrant and the Exercise Price of such
         Warrant Shares after such adjustment and setting forth a brief
         statement of the facts requiring such adjustment.

16.      Authorized Shares. The Company covenants that during the period the
         Warrant is outstanding and exercisable, it will reserve from its
         authorized and unissued Common Stock a sufficient number of shares to
         provide for the issuance of the Warrant Shares upon the exercise of any
         purchase rights under this Warrant. The Company further covenants that
         its issuance of this Warrant shall constitute full authority to its
         officers who are charged with the duty of executing stock certificates
         to execute and issue the necessary certificates for the Warrant Shares
         upon the exercise of the purchase rights under this Warrant. The
         Company will take all such reasonable action as may be necessary to
         assure that such Warrant Shares may be issued as provided herein
         without violation of any applicable law or regulation, or of any
         requirements of the American

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         Stock Exchange or any domestic securities exchange upon which the
         Common Stock may be listed.

17.      9.9% Limitation.

(a)      Notwithstanding anything to the contrary contained herein, the number
         of shares of Common Stock that may be acquired by the Investor upon
         exercise pursuant to the terms hereof shall not exceed a number that,
         when added to the total number of shares of Common Stock deemed
         beneficially owned by such holder (other than by virtue of the
         ownership of securities or rights to acquire securities (including the
         Warrant) that have limitations on the Investor's right to convert,
         exercise or purchase similar to the limitation set forth herein),
         together with all shares of Common Stock deemed beneficially owned
         (other than by virtue of the ownership of securities or rights to
         acquire securities (including the Warrant) that have limitations on the
         right to convert, exercise or purchase similar to the limitation set
         forth herein) by the holder's "affiliates" (as defined Rule 144 of the
         Act) ("AGGREGATION PARTIES") that would be aggregated for purposes of
         determining whether a group under Section 13(d) of the Securities
         Exchange Act of 1934, as amended, exists, would exceed 9.99% of the
         total issued and outstanding shares of the Company's Common Stock (the
         "RESTRICTED OWNERSHIP PERCENTAGE"). Each Holder shall have the right
         (w) at any time and from time to time to reduce its Restricted
         Ownership Percentage immediately upon notice to the Company and (x) at
         any time and from time to time, to increase its Restricted Ownership
         Percentage immediately in the event of the announcement as pending or
         planned of an event of:

         (i)      any consolidation or merger of the Company with or into any
                  other corporation or other entity or person (whether or not
                  the Company is the surviving corporation), or any other
                  corporate reorganization or transaction or series of related
                  transactions in which in excess of 50% of the Company's voting
                  power is transferred through a merger, consolidation, tender
                  offer or similar transaction,

         (ii)     any person (as defined in Section 13(d) of the Exchange Act),
                  together with its affiliates and associates (as such terms are
                  defined in Rule 405 under the 1933 Act), beneficially owns or
                  is deemed to beneficially own (as described in Rule 13d-3
                  under the Exchange Act without regard to the 60-day exercise
                  period) in excess of 50% of the Company's voting power,

         (iii)    there is a replacement of more than one-half of the members of
                  the Company's Board of Directors which is not approved by
                  those individuals who are members of the Company's Board of
                  Directors on the date thereof, in one or a series of related
                  transactions, or

         (iv)     a sale or transfer of all or substantially all of the assets
                  of the Company, determined on a consolidated basis.

(b)      The Investor covenants at all times on each day (each such day being
         referred to as a "COVENANT DAY") as follows: During the balance of such
         Covenant Day and the

                                       10
<PAGE>   11

         succeeding sixty-one (61) days (the balance of such Covenant Day and
         the succeeding sixty-one (61) days being referred to as the "COVENANT
         PERIOD") such Investor will not acquire shares of Common Stock pursuant
         to any right (including the exercise of the Warrant) existing at the
         commencement of the Covenant Period to the extent the number of shares
         so acquired by such holder and its Aggregation Parties (ignoring all
         dispositions) would exceed:

         (x)      the Restricted Ownership Percentage of the total number of
                  shares of Common Stock outstanding at the commencement of the
                  Covenant Period,

         minus

         (y)      the number of shares of Common Stock owned by such holder and
                  its Aggregation Parties at the commencement of the Covenant
                  Period.

                  A new and independent covenant will be deemed to be given by
         the holder as of each moment of each Covenant Day. No covenant will
         terminate, diminish or modify any other covenant. The holder agrees to
         comply with each such covenant. This Section 17 controls in the case of
         any conflict with any other provision of the Transaction Documents.

                  The Company's obligation to issue shares of Common Stock which
         would exceed such limits referred to in this Section 17 shall be
         suspended to the extent necessary until such time, if any, as shares of
         Common Stock may be issued in compliance with such restrictions.

18.      Compliance with Securities Laws.

(a)      The holder hereof acknowledges that the Warrant Shares acquired upon
         the exercise of this Warrant, if not registered (or if no exemption
         from registration exists), will have restrictions upon resale imposed
         by state and federal securities laws. Each certificate representing the
         Warrant Shares issued to the Holder upon exercise (if not registered or
         if no exemption from registration exists) will bear the following
         legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
         COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
         AND, ACCORDINGLY, MAY NOT BE OFFERED, TRANSFERRED, SOLD OR OTHERWISE
         DISPOSED OF 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 AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS,
         BASED ON AN OPINION LETTER OF COUNSEL

                                       11
<PAGE>   12

         SATISFACTORY TO THE COMPANY OR A NO-ACTION LETTER FROM THE SECURITIES
         AND EXCHANGE COMMISSION.

(b)      Without limiting the Investor's right to transfer, assign or otherwise
         convey the Warrant or Warrant Shares in compliance with all applicable
         securities laws, the Investor of this Warrant, by acceptance hereof,
         acknowledges that this Warrant and the Warrant Shares to be issued upon
         exercise hereof are being acquired solely for the Investor's own
         account and not as a nominee for any other party, and that the Investor
         will not offer, sell or otherwise dispose of this Warrant or any
         Warrant Shares to be issued upon exercise hereof except under
         circumstances that will not result in a violation of applicable federal
         and state securities laws. Upon exercise of this Warrant, the Investor
         shall, if requested by the Company, confirm in writing, in a form
         satisfactory to the Company, that the Warrant Shares of Common Stock so
         purchased are being acquired solely for the Investor's own account and
         not as a nominee for any other party, for investment, and not with a
         view toward distribution or resale.

(c)      Neither this Warrant nor any share of Common Stock issued upon exercise
         of this Warrant may be offered for sale or sold, or otherwise
         transferred or sold in any transaction which would constitute a sale
         thereof within the meaning of the Act, unless (i) such security has
         been registered for sale under the Act and registered or qualified
         under applicable state securities laws relating to the offer an sale of
         securities, or (ii) exemptions from the registration requirements of
         the Act and the registration or qualification requirements of all such
         state securities laws are available and the Company shall have received
         an opinion of counsel that the proposed sale or other disposition of
         such securities may be effected without registration under the Act,
         such counsel and such opinion to be satisfactory to the Company.

(d)      Investor recognizes that investing in the Warrant and the Warrant
         Shares involves a high degree of risk, and Investor is in a financial
         position to hold the Warrant and the Warrant Shares indefinitely and is
         able to bear the economic risk and withstand a complete loss of its
         investment in the Warrant and the Warrant Shares. The Investor is a
         sophisticated investor and is capable of evaluating the merits and
         risks of investing in the Company. The Investor has had an opportunity
         to discuss the Company's business, management and financial affairs
         with the Company's management, has been given full and complete access
         to information concerning the Company, and has utilized such access to
         its satisfaction for the purpose of obtaining information or verifying
         information and has had the opportunity to inspect the Company's
         operation. Investor has had the opportunity to ask questions of, and
         receive answers from, the management of the Company (and any person
         acting on its behalf) concerning the Warrant and the Warrant Shares and
         the agreements and transactions contemplated hereby, and to obtain any
         additional information as Investor may have requested in making its
         investment decision. The initial Investor in this Warrant is an
         "accredited investor", as defined by Regulation D promulgated under the
         Act.

                                       12
<PAGE>   13

19.      Miscellaneous.

(a)      Issue Date; Choice Of Law; Venue; Jurisdiction. The provisions of this
         Warrant shall be construed and shall be given effect in all respects as
         if it had been issued and delivered by the Company on the date hereof.
         This Warrant shall be binding upon any successors or assigns of the
         Company. This Warrant will be construed and enforced in accordance with
         and governed by the laws of the State of New York, except for matters
         arising under the Act, without reference to principles of conflicts of
         law. Each of the parties consents to the exclusive jurisdiction of the
         U.S. District Court sitting in the State of City of New York in the
         State of New York in connection with any dispute arising under this
         Warrant and hereby waives, to the maximum extent permitted by law, any
         objection, including any objection based on forum non conveniens, to
         the bringing of any such proceeding in such jurisdiction. Each party
         hereby agrees that if the other party to this Warrant obtains a
         judgment against it in such a proceeding, the party which obtained such
         judgment may enforce same by summary judgment in the courts of any
         country having jurisdiction over the party against whom such judgment
         was obtained, and each party hereby waives any defenses available to it
         under local law and agrees to the enforcement of such a judgment. Each
         party to this Warrant irrevocably consents to the service of process in
         any such proceeding by the mailing of copies thereof by registered or
         certified mail, postage prepaid, to such party at its address in
         accordance with Section 18(c). Nothing herein shall affect the right of
         any party to serve process in any other manner permitted by law. Each
         party waives its right to a trial by jury.

(b)      Modification and Waiver. This Warrant and any provisions hereof may be
         changed, waived, discharged or terminated only by an instrument in
         writing signed by the party against which enforcement of the same is
         sought. Any amendment effected in accordance with this paragraph shall
         be binding upon the Investor, each future holder of this Warrant and
         the Company. No waivers of, or exceptions to, any term, condition or
         provision of this Warrant, in any one or more instances, shall be
         deemed to be, or construed as, a further or continuing waiver of any
         such term, condition or provision.

(c)      Notices. Any notice, request or other document required or permitted to
         be given or delivered to the Investor or future holders hereof or the
         Company shall be personally delivered or shall be sent by certified or
         registered mail, postage prepaid, to the Investor or each such holder
         at its address as shown on the books of the Company or to the

                                       13
<PAGE>   14

         Company at the address set forth in the Agreement. All notices under
         this Warrant shall be deemed to have been given when received.

         A party may from time to time change the address to which notices to it
         are to be delivered or mailed hereunder by notice in accordance with
         the provisions of this Section 19(c).

(d)      Severability. Whenever possible, each provision of this Warrant shall
         be interpreted in such manner as to be effective and valid under
         applicable law, but if any provision of this Warrant is held to be
         invalid, illegal or unenforceable in any respect under any applicable
         law or rule in any jurisdiction, such invalidity, illegality or
         unenforceability shall not affect the validity, legality or
         enforceability of any other provision of this Warrant in such
         jurisdiction or affect the validity, legality or enforceability of any
         provision in any other jurisdiction, but this Warrant shall be
         reformed, construed and enforced in such jurisdiction as if such
         invalid, illegal or unenforceable provision had never been contained
         herein.

(e)      No Impairment. The Company will not, by amendment of its Certificate of
         Incorporation or through any reorganization, transfer of assets,
         consolidation, merger, dissolution, issue or sale of securities or any
         other voluntary action, avoid or seek to avoid the observance or
         performance of any of the terms of this Warrant, but will at all times
         in good faith assist in the carrying out of all such terms and in the
         taking of all such action as may be necessary or appropriate in order
         to protect the rights of the Warrant holder against impairment. Without
         limiting the generality of the foregoing, the Company (a) will not
         increase the par value of any Warrant Shares above the amount payable
         therefor on such exercise, and (b) will take all such action as may be
         reasonably necessary or appropriate in order that the Company may
         validly and legally issue fully paid and nonassessable Warrant Shares
         on the exercise of this Warrant.

                                       14
<PAGE>   15

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

Dated:  October 13, 2000

                                         ZYMETX, INC.

                                         By:
                                            --------------------------
                                            Norman R. Proulx
                                            Chief Executive Officer

                                       15
<PAGE>   16

                               NOTICE OF EXERCISE

To:      ZYMETX, INC.

(1)      The undersigned hereby elects:

         (A) to purchase ________ shares of Common Stock of ZymeTx, Inc.
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the Exercise Price in full, together with all applicable transfer taxes, if any.

         (B) in a "cashless" or "net-issue exercise" for, and to purchase
thereunder, ______ shares of Common Stock, and herewith makes payment therefor
with _______ Exercised Shares.

(2) Please issue a certificate or certificates representing said shares of
Common Stock in the name of the undersigned or in such other name as is
specified below:

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

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

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

(3) Please issue a new Warrant for the unexercised portion of the attached
Warrant in the name of the undersigned or in such other name as is specified
below:

                           Other Name:
                                      ---------------------

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

--------------------                 -----------------------------------
(Date)                               (Signature)

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

                                       16
<PAGE>   17

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant of ZymeTx, Inc. and all
rights evidenced thereby are hereby assigned to

                                             whose address is
--------------------------------------------

---------------------------------------------------------------.

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

                                          Dated:                   ,
                                                 ------------------

                           Holder's Signature:
                                               ---------------------------

                           Holder's Address:
                                               ---------------------------

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

Signature Guaranteed:
                     -------------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.<PAGE>   1
                                                                   EXHIBIT 10.22

                                                                  EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT ("AGREEMENT") is entered into as of
October 13, 2000 between ZymeTx, Inc., a Delaware corporation (the "COMPANY")
and each of the entities listed under "INVESTORS" on the signature page hereto
(each an "INVESTOR" and collectively the "INVESTORS"), each with offices at the
address listed under such Investor's name on Schedule I hereto.

                              W I T N E S S E T H:

     WHEREAS, pursuant to that certain Purchase and Security Agreement by and
between the Company and the Investors (the "PURCHASE AGREEMENT"), the Company
has agreed to sell and issue to the Investors, and the Investors have agreed to
purchase from the Company, an aggregate of $2 million principal amount of the
Company's 5% Senior Convertible Debentures Due October 12, 2002 (the
"DEBENTURES") on the terms and conditions set forth therein;

     WHEREAS, the Purchase Agreement contemplates that the Debentures will be
convertible into shares (the "COMMON SHARES") of common stock, par value $.001,
of the Company ("COMMON STOCK");

     WHEREAS, pursuant to the terms of, and in partial consideration for, the
Investors' agreement to enter into the Purchase Agreement, the Company has
agreed to issue warrants (the "WARRANTS") exercisable for shares of Common Stock
(the "WARRANT SHARES") in connection with the issuance of the Debentures;

     WHEREAS, pursuant to the terms of, and in partial consideration for, the
Investors' agreement to enter into the Purchase Agreement, the Company has
agreed to provide the Investors with certain registration rights with respect to
the Common Shares, Warrant Shares and certain other rights and remedies with
respect to the Debentures as set forth in this Agreement;

     NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in the Purchase Agreement and
this Agreement, the Company and the Investors agree as follows:

     1. Certain Definitions. Capitalized terms used herein and not otherwise
defined shall have the meaning ascribed thereto in the Purchase Agreement, the
Warrants or the Debentures. As used in this Agreement, the following terms shall
have the following respective meanings:

     "CLOSING" and "CLOSING DATE" shall have the meanings ascribed to such terms
in the Purchase Agreement.

     "CONVERSION PRICE" shall have meaning ascribed to such term in Section 7(c)
of the Debenture.

<PAGE>   2

     "CONVERSION VALUE" shall mean the value that a Holder would be entitled to
receive upon (i) conversion of the Debenture at the Conversion Price then in
existence, without reference to Sections 14 or 7(a) thereof or to Section 3.14
of the Purchase Agreement, followed by (ii) the subsequent sale of the Common
Shares received thereby at the greater of the Market Price for Shares of Common
Stock in existence from (A) the time of the event triggering the right to
redemption until (B) the time of the closing of a redemption of a Debenture.

     "COMMISSION" or "SEC" shall mean the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act.

     "CONVERSION PRICE REDUCTION" shall mean a 1% reduction in the otherwise
applicable Conversion Price for the first 30-day period (or portion thereof) of
an Interfering Event and a 1.5% reduction for each subsequent 30-day period (or
portion thereof) of an Interfering Event.

     "DEBENTURE AMOUNT" shall mean the Outstanding Principal Amount of, the
accrued but unpaid interest on, and the accrued but unpaid delay or forbearance
payments on the Debentures.

     "EFFECTIVENESS DEADLINE" shall have the meaning set forth in Section 2(a).

     "HOLDER" and "HOLDERS" shall mean the Investor or the Investors,
respectively, and any transferee of the Debentures, Warrants, Warrant Shares,
Option Shares or Common Shares or Registrable Securities which have not been
sold to the public to whom the registration rights conferred by this Agreement
have been transferred in compliance with this Agreement.

     "INTERFERING EVENTS" shall have the meaning set forth in Section 2(b).

     "MARKET PRICE FOR SHARES OF COMMON STOCK" shall have the meaning ascribed
to such term in the Debentures.

     "OUTSTANDING PRINCIPAL AMOUNT" shall have the meaning ascribed to such term
in the Debentures.

     "PREMIUM REDEMPTION PRICE" shall mean the following:

         (a) as to the Debentures, the greater of (i) 120% of the Debenture
Amount and (ii) the Conversion Value;

         (b) as to the Warrant Shares and Common Shares, 120% of the
dollar amount which is the product of (i) the number of shares to be redeemed,
and (ii) the highest Market Price for Shares of Common Stock in existence from
(x) the time of the event triggering the right to redemption until (y) the time
of the closing of the redemption of the Warrant Shares or Common Shares as
applicable.

                                       2

<PAGE>   3

         (c) as to the Warrants, 120% of the dollar amount which is the product
of (i) the number of Warrant Shares to be issued to the Holder upon exercise of
Warrants multiplied by (ii) the highest Market Price for Shares of Common Stock
in existence from (x) the time of the event triggering the right to redemption
until (y) the time of the closing of the redemption of the Warrants.

     "PUT NOTICE" shall have the meaning set forth in Section 2(b)(i)(C).

     "REGISTRABLE SECURITIES" shall mean: (a) the Common Shares and Warrant
Shares issued or issuable to each Holder or its permitted transferee or designee
upon conversion of the Debentures or exercise of the Warrants, as applicable, or
upon any stock split, stock dividend, recapitalization or similar event with
respect to such Common Shares or Warrant Shares; (b) any securities issued or
issuable to each Holder upon the conversion, exercise or exchange of any
Debentures, Warrants, Warrant Shares or Common Shares; and (c) any other
security of the Company issued as a dividend or other distribution with respect
to, conversion or exchange of, or in replacement of, Registrable Securities.
Warrant Shares will only become exercisable if and when the underlying Warrants
are issued.

     The terms "REGISTER", "REGISTERED" and "REGISTRATION" shall refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of the effectiveness of such
registration statement.

     "REGISTRATION EXPENSES" shall mean all expenses to be incurred by the
Company in connection with each Holder's registration rights under this
Agreement, including, without limitation, all registration and filing fees,
printing expenses, fees and disbursements of counsel for the Company, "BLUE SKY"
fees and expenses, reasonable fees and disbursements of counsel to Holders
(using a single counsel selected by a majority in interest of the Holders) for a
"due diligence" examination of the Company and review of the Registration
Statement and related documents, and the expense of any special audits incident
to or required by any such registration (but excluding the compensation of
regular employees of the Company, which shall be paid in any event by the
Company).

     "REGISTRATION STATEMENT" shall have the meaning set forth in Section 2(a)
herein.

     "REGULATION D" shall mean Regulation D as promulgated pursuant to the
Securities Act, and as subsequently amended.

     "SECURITIES ACT" or "ACT" shall mean the Securities Act of 1933, as
amended.

     "SELLING EXPENSES" shall mean all underwriting discounts and selling
commissions applicable to the sale of Registrable Securities, all fees and
disbursements of counsel for Holders not included within "Registration Expenses"
and if the Holders engage a third party as an underwriter for the purpose of
distributing Registrable Securities on an underwritten basis, the fees and
expenses of such underwriting and any additional expenses of an accountant
incurred in order to obtain a "Comfort Letter."

                                       3

<PAGE>   4

     2. Registration Requirements. The Company shall use its best efforts to
effect the registration of the Registrable Securities (including without
limitation the execution of an undertaking to file post-effective amendments,
appropriate qualification under applicable "Blue Sky" or other state securities
laws and appropriate compliance with applicable regulations issued under the
Securities Act) as would permit or facilitate the sale or distribution of all
the Registrable Securities in the manner (including manner of sale) reasonably
requested by the Holder and in all U.S. jurisdictions. Such best efforts by the
Company shall include the following:

         (a) The Company shall, as expeditiously as reasonably possible after
the Closing Date:

               (i) But in any event within 30 days thereafter, prepare and file
          a registration statement with the Commission on Form S-3 under the
          Securities Act (or in the event that the Company is ineligible to use
          such form, such other form as the Company is eligible to use under the
          Securities Act) covering the Registrable Securities (such registration
          statement, including any amendments or supplements thereto and
          prospectuses contained therein, is referred to herein as the
          "REGISTRATION STATEMENT"), which Registration Statement, to the extent
          allowable under the Securities Act and the rules promulgated
          thereunder (including Rule 416), shall state that such Registration
          Statement also covers such number of additional shares of Common Stock
          as may become issuable to prevent dilution resulting from stock
          splits, stock dividends or similar events. The number of shares of
          Common Stock initially included in such Registration Statement shall
          be no less than the sum of (A) two (2) times the sum of the number of
          Common Shares that are as of the date of this Agreement issuable upon
          conversion of the Debentures plus (B) the number of Warrant Shares
          issuable upon exercise of the Warrants in each case without regard to
          any limitation on the Investor's ability to convert the Debentures or
          Warrants. Thereafter, the Company shall use its best efforts to cause
          such Registration Statement to be declared effective as soon as
          practicable, and in any event prior to the earlier of (i) ninety (90)
          days following the Closing Date or (ii) five (5) days after SEC
          clearance to request acceleration (the "EFFECTIVENESS DEADLINE"). The
          Company shall provide Holders and their legal counsel reasonable
          opportunity to review any such Registration Statement or amendment or
          supplement thereto prior to filing.

               (ii) Prepare and file with the SEC such amendments and
          supplements to such Registration Statement and the prospectus used in
          connection with such Registration Statement as may be necessary to
          comply with the provisions of the Act with respect to the disposition
          of all securities covered by such Registration Statement in accordance
          with the intended methods of disposition by the seller thereof as set
          forth in the Registration Statement and notify the Holders of the
          filing and

                                       4

<PAGE>   5

          effectiveness of such Registration Statement and any amendments or
          supplements.

               (iii) After the registration, furnish to each Holder such numbers
          of copies of a current prospectus conforming with the requirements of
          the Act, copies of the Registration Statement, any amendment or
          supplement thereto and any documents incorporated by reference therein
          and such other documents as such Holder may reasonably require in
          order to facilitate the disposition of Registrable Securities owned by
          such Holder.

               (iv) Use its best efforts to register and qualify the securities
          covered by such Registration Statement under such other securities or
          "Blue Sky" laws of all U.S. jurisdictions; provided that the Company
          shall not be required in connection therewith or as a condition
          thereto to qualify to do business or to file a general consent to
          service of process in any such states or jurisdictions.

               (v) Notify each Holder immediately of the happening of any event
          as a result of which the prospectus (including any supplements thereto
          or thereof and any information incorporated or deemed to be
          incorporated by reference therein) included in such Registration
          Statement, as then in effect, includes an untrue statement of material
          fact or omits to state a material fact required to be stated therein
          or necessary to make the statements therein not misleading in light of
          the circumstances then existing, and, pursuant to Section 2(f), use
          its best efforts to promptly update and/or correct such prospectus.

               (vi) Notify each Holder immediately of the issuance by the
          Commission or any state securities commission or agency of any stop
          order suspending the effectiveness of the Registration Statement or
          the initiation of any proceedings for that purpose. The Company shall
          use its best efforts to prevent the issuance of any stop order and, if
          any stop order is issued, to obtain the lifting thereof at the
          earliest possible time.

               (vii) Permit a single firm of counsel, designated as Holders'
          counsel by the Holders of a majority of the Registrable Securities
          included in the Registration Statement, to review the Registration
          Statement and all amendments and supplements thereto within a
          reasonable period of time prior to each filing, and shall not file any
          document in a form to which such counsel reasonably objects.

               (viii) Use its best efforts to list the Registrable Securities
          covered by such Registration Statement with all securities exchange(s)
          and/or markets on which the Common Stock is then listed and prepare
          and file any required filings with the National Association of
          Securities Dealers, Inc. or any exchange or market where the Common
          Stock is then traded.

                                       5

<PAGE>   6

               (ix) If applicable, take all steps necessary to enable Holders to
          avail themselves of the prospectus delivery mechanism set forth in
          Rule 153 (or successor thereto) under the Act.

               (x) File additional Registration Statements if the number of
          Registrable Securities at any time exceeds 80% of the number of shares
          of Common Stock then registered in the existing Registration
          Statements hereunder.

         (b) Set forth below in this Section 2(b) are (I) events that may arise
that the Investors consider will interfere with the full enjoyment of their
rights under the Debentures, the Purchase Agreement and this Agreement (the
"INTERFERING EVENTS"), and (II) certain remedies applicable in each of these
events.

          Paragraphs (i) through (iv) of this Section 2(b) describe the
          Interfering Events, provide a remedy to the Investors if an
          Interfering Event occurs and provide that the Investors may require
          that the Company redeem outstanding Debentures, Warrants, or
          Registrable Securities at a specified price if certain Interfering
          Events are not timely cured.

          Paragraph (v) provides, inter alia, that each Holder shall have the
          option as to whether it would like to receive any payment required as
          a remedy in the case of certain of the Interfering Events in cash or
          shares of Common Stock.

          Paragraph (vi) provides, inter alia, that if payments required as the
          remedy in the case of certain of the Interfering Events are not paid
          when due, the Company may be required by the Investors to redeem
          outstanding Debentures, Warrants, or Registrable Securities at a
          specified price.

          Paragraph (viii) provides, inter alia, that the Investors have the
          right to specific performance.

     The preceding paragraphs in this Section 2(b) are meant to serve only as an
introduction to this Section 2(b), are for convenience only, and are not to be
considered in applying, construing or interpreting this Section 2(b).

               (i) Delay in Effectiveness of Registration Statement.

                   (A) In the event that the Registration Statement has not been
          declared effective by the Effectiveness Deadline, then the Company
          shall cause a Conversion Price Reduction for each thirty (30) day
          period (or portion thereof) thereafter during which the Registration
          Statement has not been declared effective.

                   (B) If the Registration Statement has not been declared
          effective within thirty (30) days of the Effectiveness Deadline (the
          "FORBEARANCE DEADLINE"), then the Company (at its election made within

                                       6

<PAGE>   7

          one (1) business day of the Forbearance Deadline) either (i) shall pay
          a cash forbearance fee to each Holder equal to three percent (3%) of
          the Debenture Amount of such Holder's Debentures for the first 30-day
          period (or portion thereof) following the Forbearance Deadline and
          five percent (5%) of the Debenture Amount of those Debentures for each
          subsequent 30-day period (or portion thereof), or (ii) redeem all but
          not less than all the Debentures, Warrants, Common Shares and Warrant
          Shares held by all Holders at the Premium Redemption Price. If the
          Company elects to pay in cash pursuant to (i) above, such cash amounts
          shall be payable upon the Holder's demand. If the Company elects to
          redeem at the Premium Redemption Price pursuant to (ii) above, the
          Company shall deliver to each Holder a written notice thereof (the
          "COMPANY PUT NOTICE"), which Company Put Notice shall state the
          Premium Redemption Price shall be paid five (5) business day
          thereafter (the "COMPANY REDEMPTION DATE"). Nothing herein shall be
          construed as precluding the Holder from exercising its conversion
          rights under the Debenture unless the Company redeems the Debenture
          and pays the full Premium Redemption Price as set forth in this
          Section 2(b)(i)(B). New Conversion Price Reductions will no longer be
          made and forbearance fees shall no longer accrue on Debentures after
          they have been redeemed by the Company.

                    (C) If the Registration Statement has not been declared
          effective within 365 days of the Closing Date, then each Holder shall
          have the right to require the Company to redeem the Debentures,
          Warrants, Common Shares, and/or Warrant Shares in whole or in part at
          the Premium Redemption Price. Each Holder shall exercise such right by
          providing the Company with written notice thereof (the "PUT NOTICE"),
          which such Put Notice shall include the type and amount of each
          security that the Holder seeks to redeem and a date at least five (5)
          business days from the date thereof on which the Holder seeks the
          redemption to occur (the "REDEMPTION DATE"). Nothing herein shall be
          construed as precluding the Holder from exercising its conversion
          rights under the Debenture unless the Company redeems the Debenture
          and pays the Premium Redemption Price set forth above in full pursuant
          to Section 2(b)(i)(B). New Conversion Price Reductions will no longer
          be made and forbearance fees shall no longer accrue on Debentures they
          have been redeemed by the Company.

               (ii) No Listing; Premium Price Redemption for Delisting of Class
          of Shares.

                    (A) In the event that the Company fails, refuses or is
          unable to cause the Registrable Securities covered by the Registration
          Statement to be listed with the applicable Approved Markets and each
          other securities exchange and market on which the Common Stock is then
          traded at all times during the period ("LISTING PERIOD") commencing on
          the Effectiveness Deadline, and continuing thereafter for so long as
          the

                                       7

<PAGE>   8

          Debentures are outstanding, then the Company shall cause a Conversion
          Price Reduction for each 30-day period (or portion thereof) during the
          Listing Period from and after such failure, refusal or inability to so
          list the Registrable Securities until the Registrable Securities are
          so listed.

                    (B) In the event that shares of Common Stock of the Company
          are delisted from the applicable Approved Markets at any time
          following the Closing Date and remain delisted for either 5
          consecutive days or an aggregate of ten (10) days in any twelve (12)
          month period, then at the option of each Holder and to the extent such
          Holder so elects, the Company shall, at the option of each Holder,
          either (1) cause a Conversion Price Reduction for each 30-day period
          (or portion thereof) that the shares are delisted or (2) redeem the
          Debentures and/or Warrants and/or Common Shares and/or Warrant Shares
          held by such Holder, in whole or in part, at the Premium Redemption
          Price; provided, however, that such Holder may revoke such request at
          any time prior to receipt of payment of such Premium Redemption Price
          or realization of such Conversion Price Reduction, as the case may be.

               (iii) Blackout Periods. In the event any Holder is unable to sell
          Registrable Securities under the Registration Statement for more than
          (A) five (5) consecutive days or (B) an aggregate of ten (10) days in
          any 12 month period ("SUSPENSION GRACE PERIOD"), including without
          limitation by reason of a suspension of trading of the Common Stock on
          the Approved Market, any suspension or stop order with respect to the
          Registration Statement or the fact that an event has occurred as a
          result of which the prospectus (including any supplements thereto)
          included in such Registration Statement then in effect includes an
          untrue statement of material fact or omits to state a material fact
          required to be stated therein or necessary to make the statements
          therein not misleading in light of the circumstances then existing, or
          the number of shares of Common Stock covered by the Registration
          Statement is insufficient at such time to make such sales (a
          "BLACKOUT"), then the Company shall cause a Conversion Price Reduction
          for each 30-day period (or portion thereof) from and after the
          expiration of the Suspension Grace Period. In lieu of receiving the
          Conversion Price Reduction as provided above, a Holder shall have the
          right but not the obligation to elect to have the Company redeem its
          Debentures, Warrants, Common Shares and Warrant Shares at the Premium
          Redemption Price.

               (iv) Conversion Deficiency; Premium Price Redemption for
          Conversion Deficiency. In the event that the Company does not have a
          sufficient number of Common Shares available to satisfy the Company's
          obligations to any Holder upon receipt of a Conversion Notice (as
          defined in the Debenture) or is otherwise unable or unwilling to issue
          such Common Shares (including without limitation by reason of the
          limit

                                       8

<PAGE>   9

          described in Section 10 below) in accordance with the terms of the
          Debenture for any reason after receipt of a Conversion Notice, then:

                    (A) The Company shall cause a Conversion Price Reduction for
          each 30-day period (or portion thereof) that the Company fails, is
          unable or refuses to issue Common Shares in accordance with the
          Debenture terms; provided, however, that if such failure is the result
          of there being insufficient shares authorized to make such issuance,
          there shall not be a Conversion Price Reduction if the Company
          promptly (but in any event within ten (10) calendar days) authorizes
          and issues such shares, and

                    (B) At any time five (5) days after the commencement of the
          running of the first 30-day period described above in clause (A) of
          this paragraph (iv), at the request of any Holder pursuant to a
          redemption notice, the Company promptly (1) shall purchase from such
          Holder, at the Premium Redemption Price, the Debenture Amount of
          Debentures equal to such Holder's pro rata share of the Deficiency (as
          such term is defined below), if the failure to issue Common Shares
          results from the lack of a sufficient number thereof and (2) shall
          purchase all (or such portion as such Holder may elect) of such
          Holder's Debentures at such Premium Redemption Price if the failure to
          issue Common Shares results from any other cause. The "DEFICIENCY"
          shall be equal to the Debenture Amount of Debentures that would not be
          able to be converted for Common Shares, due to an insufficient number
          of Common Shares available, if all the outstanding Debentures were
          submitted for conversion at the Conversion Price set forth in the
          Debentures as of the date such Deficiency is determined. Any request
          by a Holder pursuant to this paragraph (iv)(B) shall be revocable by
          that Holder at any time prior to its receipt of the Premium Redemption
          Price.

               (v) Certain Terms. All Conversion Price Reductions shall be made,
          and all forbearance fees required to be made in connection with the
          above provisions shall be paid, at any time upon demand.

               (vi) Premium Price Redemption for Conversion Price Reduction
          Defaults and Forbearance Fee Defaults. In the event that the Company
          fails or refuses to give effect to any Conversion Price Reduction
          provided for in the foregoing paragraphs (i) through (iv) or pay any
          forbearance fee when due, at any Holder's request and option, the
          Company shall purchase all or a portion of the Debentures, Warrants,
          Common Shares and/or Warrant Shares held by such Holder (with
          forbearance fees accruing through the date of such purchase), within
          five (5) days of such request, at the Premium Redemption Price;
          provided that such Holder may revoke such request at any time prior to
          receipt of such payment of the full Premium Redemption Price. Until
          such time as the Company purchases such Debentures at the request of
          such Holder

                                       9

<PAGE>   10

          pursuant to the preceding sentence, at any Holder's request and
          option, the Company shall add the amount of any forbearance fees to
          the Outstanding Principal Amount of a Holder's Debentures and increase
          the 120% multiplier in each calculation of Premium Redemption Price by
          the percentage of all Conversion Price Reductions.

               (vii) Cumulative Remedies. Each Conversion Price Reduction
          triggered by an Interfering Event provided for in the foregoing
          paragraphs (ii) through (iv) shall be in addition to each other
          Conversion Price Reduction triggered by another Interfering Event;
          provided, however, that in no event shall the Company be obligated to
          provide any Holder with -------- more than one (1) Conversion Price
          Reduction for any 30-day period (or portion thereof). The Conversion
          Price Reductions, forbearance fees and redemptions provided for above
          are in addition to and not in lieu or limitation of any other rights
          the Holders may have at law, in equity or under the terms of the
          Debentures or the other Transaction Documents, including without
          limitation the right to specific performance. Each Holder shall be
          entitled to specific performance of any and all obligations of the
          Company in connection with the registration rights of the Holders
          hereunder.

               (viii) Certain Acknowledgments. The Company acknowledges that any
          failure, refusal or inability by the Company described in the
          foregoing paragraphs (i) through (iv) and paragraph (vi) will cause
          the Holders to suffer damages in an amount that will be difficult to
          ascertain, including without limitation damages resulting from the
          loss of liquidity in the Registrable Securities and the additional
          investment risk in holding the Registrable Securities. Accordingly,
          the parties agree that it is appropriate to include in this Agreement
          the foregoing provisions for Conversion Price Reductions, forbearance
          fees and redemptions in order to compensate the Holders for such
          damages. The parties acknowledge and agree that the Conversion Price
          Reductions, forbearance fees and redemptions set forth above represent
          the parties' good faith effort to quantify such damages and, as such,
          agree that the form and amount of such Conversion Price Reductions,
          forbearance fees and mandatory redemptions are reasonable and will not
          constitute a penalty.

         (c) If the Holder(s) intend to distribute the Registrable Securities by
means of an underwriting, the Holder(s) shall so advise the Company. Any such
underwriting may only be administered by investment bankers reasonably
satisfactory to the Company.

         (d) The Company shall enter into such customary agreements for
secondary offerings (including a customary underwriting agreement with the
underwriter or underwriters, if any) and take all such other reasonable actions
reasonably requested by the Holders in connection therewith in order to expedite
or facilitate the disposition of such Registrable Securities. In the event that
the offering in which the Registrable

                                       10

<PAGE>   11

Securities are to be sold is deemed to be an underwritten offering or an
Investor selling Registrable Securities is deemed to be an underwriter, the
Company shall:

               (i) make such representations and warranties to the Holders and
          the underwriter or underwriters, if any, in form, substance and scope
          as are customarily made by issuers to underwriters in secondary
          offerings;

               (ii) cause to be delivered to the sellers of Registrable
          Securities and the underwriter or underwriters, if any, opinions of
          independent counsel to the Company, on and dated as of the effective
          date (or in the case of an underwritten offering, dated the date of
          delivery of any Registrable Securities sold pursuant thereto) of the
          Registration Statement, and within ninety (90) days following the end
          of each fiscal year thereafter, which counsel and opinions (in form,
          scope and substance) shall be reasonably satisfactory to the Holders
          and the underwriter(s), if any, and their counsel and covering,
          without limitation, such matters as the due authorization and issuance
          of the securities being registered and compliance with securities laws
          by the Company in connection with the authorization, issuance and
          registration thereof and other matters that are customarily given to
          underwriters in underwritten offerings, addressed to the Holders and
          each underwriter, if any;

               (iii) cause to be delivered, immediately prior to the
          effectiveness of the Registration Statement (and, in the case of an
          underwritten offering, at the time of delivery of any Registrable
          Securities sold pursuant thereto), and at the beginning of each fiscal
          year following a year during which the Company's independent certified
          public accountants shall have reviewed any of the Company's books or
          records, a "comfort" letter from the Company's independent certified
          public accountants addressed to the Holders and each underwriter, if
          any, stating that such accountants are independent public accountants
          within the meaning of the Securities Act and the applicable published
          rules and regulations thereunder, and otherwise in customary form and
          covering such financial and accounting matters as are customarily
          covered by letters of the independent certified public accountants
          delivered in connection with secondary offerings; such accountants
          shall have undertaken in each such letter to update the same during
          each such fiscal year in which such books or records are being
          reviewed so that each such letter shall remain current, correct and
          complete throughout such fiscal year; and each such letter and update
          thereof, if any, shall be reasonably satisfactory to the Holders;

               (iv) if an underwriting agreement is entered into, the same shall
          include customary indemnification and contribution provisions to and
          from the underwriters and procedures for secondary underwritten
          offerings;

                                       11

<PAGE>   12

               (v) deliver such documents and certificates as may be reasonably
          requested by the Holders of the Registrable Securities being sold or
          the managing underwriter or underwriters, if any, to evidence
          compliance with clause (i) above and with any customary conditions
          contained in the underwriting agreement, if any; and

               (vi) deliver to the Holders on the effective date (or in the case
          of an underwritten offering, dated the date of delivery of any
          Registrable Securities sold pursuant thereto) of the Registration
          Statement, and at the beginning of each fiscal quarter thereafter, a
          certificate in form and substance as shall be reasonably satisfactory
          to the Holders, executed by an executive officer of the Company and to
          the effect that all the representations and warranties of the Company
          contained in the Purchase Agreement are still true and correct except
          as disclosed in such certificate; the Company shall, as to each such
          certificate delivered at the beginning of each fiscal quarter, update
          or cause to be updated each such certificate during such quarter so
          that it shall remain current, complete and correct throughout such
          quarter; and such updates received by the Holders during such quarter,
          if any, shall have been reasonably satisfactory to the Holders.

         (e) The Company shall make available for inspection, upon reasonable
written notice and during regular business hours, by the Holders,
representative(s) of all the Holders together, any underwriter participating in
any disposition pursuant to a Registration Statement, and any attorney or
accountant retained by any Holder or underwriter, all financial and other
records customary for purposes of the Holders' due diligence examination of the
Company and review of any Registration Statement, all SEC Documents (as defined
in the Purchase Agreement) filed subsequent to the Closing, pertinent corporate
documents and properties of the Company, and cause the Company's officers,
directors and employees to supply all information reasonably requested by any
such representative, underwriter, attorney or accountant in connection with such
Registration Statement, provided that such parties agree to keep such
information confidential.

         (f) The Company shall file a Registration Statement with respect to any
newly authorized and/or reserved shares, with respect to its obligation to
reserve or register Registrable Securities (including pursuant to Section
1.1(c)(iii) of the Purchase Agreement), within thirty (30) days of any corporate
action authorizing or reserving same and shall file a Registration Statement
with respect to additional Registrable Securities within thirty (30) days of the
occurrence of an event referred to in Section 2(a)(x) and shall use its best
efforts to cause, in either case, such Registration Statement to become
effective within sixty (60) days of such corporate action or such occurrence, as
the case may be. If the Holders become entitled, pursuant to an event described
in clause (iii) of the definition of Registrable Securities, to receive any
securities in respect of Registrable Securities that were already included in a
Registration Statement, subsequent to the date such Registration Statement is
declared effective, and the Company is unable under the securities laws to add
such securities to the then effective Registration Statement, the Company shall
promptly file, in accordance with the procedures set forth herein, an

                                       12

<PAGE>   13

additional Registration Statement with respect to such newly Registrable
Securities. The Company shall use its best efforts to (i) cause any such
additional Registration Statement, when filed, to become effective under the
Securities Act, and (ii) keep such additional Registration Statement effective
during the period described in Section 5 below. All of the registration rights
and remedies under this Agreement shall apply to the registration of such newly
reserved shares and such new Registrable Securities, including without
limitation the provisions providing for Conversion Price Reductions, forbearance
fees and redemptions contained herein.

     3. Expenses of Registration. All Registration Expenses incurred in
connection with any registration, qualification or compliance with registration
pursuant to this Agreement shall be borne by the Company, and all Selling
Expenses of a Holder shall be borne by such Holder.

     4. Registration on Form S-3; Other Forms. The Company shall use its best
efforts to qualify and remain qualified for registration on Form S-3 or any
comparable or successor form or forms, or in the event that the Company is
ineligible to use such form, such form as the Company is eligible to use under
the Securities Act.

     5. Registration Period. In the case of the registration effected by the
Company pursuant to this Agreement, the Company will use its best efforts to
keep such registration effective until the later to occur of (i) sales are
permitted of all Registrable Securities without registration under Rule 144(k)
or (ii) such time as there are no longer any Warrants outstanding.

     6. Indemnification.

         (a) The Company Indemnity. The Company will indemnify each Holder, each
of its officers, directors and partners, and each person controlling each
Holder, within the meaning of Section 15 of the Securities Act and the rules and
regulations thereunder with respect to which registration, qualification or
compliance has been effected pursuant to this Agreement, and each underwriter,
if any, and each person who controls, within the meaning of Section 15 of the
Securities Act and the rules and regulations thereunder, any underwriter,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any prospectus, offering circular or
other document (including any related registration statement, notification or
the like) incident to any such registration, qualification or compliance, or
based on any omission (or alleged omission) to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or any violation by the Company of the Securities Act or any state
securities law or in either case, any rule or regulation thereunder applicable
to the Company and relating to action or inaction required of the Company in
connection with any such registration, qualification or compliance, and will
reimburse each Holder, each of its officers, directors and partners, and each
person controlling such Holder, each such underwriter and each person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss,
damage, liability or action, provided

                                       13

<PAGE>   14

that the Company will not be liable in any such case to a Holder to the extent
that any such claim, loss, damage, liability or expense arises out of or is
based on any untrue statement or omission based upon written information
furnished to the Company by such Holder or the underwriter (if any) therefor and
stated to be specifically for use therein. The indemnity agreement contained in
this Section 6(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent will not be unreasonably withheld).

         (b) Holder Indemnity. Each Holder will, severally and not jointly, if
Registrable Securities held by it are included in the securities as to which
such registration, qualification or compliance is being effected, indemnify the
Company, each of its directors, officers, partners, and each underwriter, if
any, of the Company's securities covered by such a registration statement, each
person who controls the Company or such underwriter within the meaning of
Section 15 of the Securities Act and the rules and regulations thereunder, each
other Holder (if any), and each of their officers, directors and partners, and
each person controlling such other Holder(s), against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement, prospectus, offering circular or
other document, or any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statement
therein not misleading, and will reimburse the Company and such other Holder(s)
and their directors, officers and partners, underwriters or control persons for
any legal or any other expenses reasonably incurred in connection with
investigating and defending any such claim, loss, damage, liability or action,
in each case to the extent, but only to the extent, that such untrue statement
(or alleged untrue statement) or omission (or alleged omission) is made in such
registration statement, prospectus, offering circular or other document in
reliance upon and in conformity with written information furnished to the
Company by such Holder and stated to be specifically for use therein, and
provided that the maximum amount for which such Holder shall be liable under
this indemnity shall not exceed the net proceeds received by such Holder from
the sale of the Registrable Securities. The indemnity agreement contained in
this Section 6(b) shall not apply to amounts paid in settlement of any such
claims, losses, damages or liabilities if such settlement is effected without
the consent of such Holder (which consent shall not be unreasonably withheld).

         (c) Procedure. Each party entitled to indemnification under this
Section 6 (the "INDEMNIFIED PARTY") shall give notice to the party required to
provide indemnification (the "INDEMNIFYING PARTY") promptly after such
Indemnified Party has actual knowledge of any claim as to which indemnity may be
sought, and shall permit the Indemnifying Party to assume the defense of any
such claim in any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any
litigation resulting therefrom, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld), and the Indemnified Party
may participate in such defense at such party's expense, and provided further
that the failure of any Indemnified Party to give notice as provided herein
shall not relieve the Indemnifying Party of its obligations under this Article
except to the

                                       13

<PAGE>   15

extent that the Indemnifying Party is materially and adversely affected by such
failure to provide notice. No Indemnifying Party, in the defense of any such
claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party of a release from all liability in respect to such
claim or litigation. Each Indemnified Party shall furnish such information
regarding itself or the claim in question as an Indemnifying Party may
reasonably request in writing and as shall be reasonably required in connection
with the defense of such claim and litigation resulting therefrom.

     7. Contribution. If the indemnification provided for in Section 6 herein is
unavailable to the Indemnified Parties in respect of any losses, claims, damages
or liabilities referred to herein (other than by reason of the exceptions
provided therein), then each such Indemnifying Party, in lieu of indemnifying
each of such Indemnified Parties, shall contribute to the amount paid or payable
by each such Indemnified Party as a result of such losses, claims, damages or
liabilities as between the Company on the one hand and any Holder on the other,
in such proportion as is appropriate to reflect the relative fault of the
Company and of such Holder in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative fault of the Company on the one
hand and of any Holder on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or by such Holder.

     In no event shall the obligation of any Indemnifying Party to contribute
under this Section 7 exceed the amount that such Indemnifying Party would have
been obligated to pay by way of indemnification if the indemnification provided
for under Section 6(a) or 6(b) hereof had been available under the
circumstances.

     The Company and the Holders agree that it would not be just and equitable
if contribution pursuant to this Section 7 were determined by pro rata
allocation (even if the Holders or the underwriters were treated as one entity
for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in the immediately preceding
paragraphs. The amount paid or payable by an Indemnified Party as a result of
the losses, claims, damages and liabilities referred to in the immediately
preceding paragraphs shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such Indemnified
Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this section, no Holder or underwriter shall
be required to contribute any amount in excess of the amount by which (i) in the
case of any Holder, the net proceeds received by such Holder from the sale of
Registrable Securities or (ii) in the case of an underwriter, the total price at
which the Registrable Securities purchased by it and distributed to the public
were offered to the public exceeds, in any such case, the amount of any damages
that such Holder or underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of

                                       15
<PAGE>   16

Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

     8. Survival. The indemnity and contribution agreements contained in
Sections 6 and 7 and the representations and warranties of the Company referred
to in Section 2(d)(i) shall remain operative and in full force and effect
regardless of (i) any termination of this Agreement or the Purchase Agreement or
any underwriting agreement, (ii) any investigation made by or on behalf of any
Indemnified Party or by or on behalf of the Company, and (iii) the consummation
of the sale or successive resales of the Registrable Securities.

     9. Information by Holders. Each Holder shall reasonably promptly furnish to
the Company such information regarding such Holder and the distribution and/or
sale proposed by such Holder as the Company may reasonably request in writing
and as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement. The intended method
or methods of disposition and/or sale (Plan of Distribution) of such securities
as so provided by such Investor shall be included without alteration in the
Registration Statement covering the Registrable Securities and shall not be
changed without written consent of such Holder, except that such Holder may not
require an intended method of disposition which violates applicable securities
law.

     10. NASDAQ Limit on Stock Issuances. Section 3.14 of the Purchase Agreement
shall govern limits imposed by NASDAQ National Market rules on the conversion of
Debentures.

     11. Replacement Certificates. The certificate(s) representing the Common
Shares or Warrant Shares held by the Investor (or then Holder) may be exchanged
by the Investor (or such Holder) at any time and from time to time for
certificates with different denominations representing an equal aggregate number
of Common Shares or Warrant Shares, as reasonably requested by the Investor (or
such Holder) upon surrendering the same. No service charge will be made for such
registration or transfer or exchange.

     12. Transfer or Assignment. Except as otherwise provided herein, this
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The rights granted to the Investors by
the Company under this Agreement to cause the Company to register Registrable
Securities may be transferred or assigned (in whole or in part) to a transferee
or assignee of Debentures or Warrants, and all other rights granted to the
Investors by the Company hereunder may be transferred or assigned to any
transferee or assignee of any Debentures or Warrants.

     13. Miscellaneous.

         (a) Remedies. The Company and the Investors acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or

                                       16
<PAGE>   17

injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof, this being in addition
to any other remedy to which any of them may be entitled by law or equity.

         (b) Jurisdiction. The Company and each of the Investors (i) hereby
irrevocably submits to the exclusive jurisdiction of the United States District
Court, the New York State courts and other courts of the United States sitting
in New York County, New York for the purposes of any suit, action or proceeding
arising out of or relating to this Agreement and (ii) hereby waives, and agrees
not to assert in any such suit action or proceeding, any claim that it is not
personally subject to the jurisdiction of such court, that the suit, action or
proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. The Company and each of the Investors consents
to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this paragraph shall affect or
limit any right to serve process in any other manner permitted by law.

         (c) Notices. Any notice or other communication required or permitted to
be given hereunder shall be in writing by facsimile, mail or personal delivery
and shall be effective upon actual receipt of such notice. The addresses for
such communications shall be:

                  to the Company:

                           ZymeTx, Inc.
                           800 Research Parkway, Suite 100
                           Oklahoma City, Oklahoma 73104
                           Attention:  C. Carl Gibson
                           Facsimile:  (405) 271-1708

                  with copies to:

                           Phillips McFall McCaffrey McVay & Murrah, P.C.
                           Twelfth Floor
                           One Leadership Square
                           211 North Robinson
                           Oklahoma City, Oklahoma 73102
                           Attention:  Douglas A. Branch, Esq.
                           Facsimile:  (405) 235-4562

                                       17
<PAGE>   18

                  to the Investors:

                           To each Investor at the address and/or fax number set
                           forth on Schedule I of this Agreement

                  with copies to:

                           Kleinberg, Kaplan, Wolff & Cohen, P.C.
                           551 Fifth Avenue
                           New York, New York 10176
                           Facsimile:       (212) 986-8866
                           Attention:       Christopher P. Davis, Esq.

     Any party hereto may from time to time change its address for notices by
giving at least ten (10) days' written notice of such changed address to the
other parties hereto.

         (d) Indemnity. Each party shall indemnify each other party against any
loss, cost or damages (including reasonable attorney's fees) incurred as a
result of such parties' breach of any representation, warranty, covenant or
agreement in this Agreement.

         (e) Waivers. No waiver by any party of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of any party to exercise any
right hereunder in any manner impair the exercise of any such right accruing to
it thereafter. The representations and warranties and the agreements and
covenants of the Company and each Investor contained herein shall survive the
Closing.

         (f) Execution. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement, it
being understood that all parties need not sign the same counterpart.

         (g) Publicity. The Company agrees that it will not disclose, and will
not include in any public announcement, the name of any Investor without its
express written approval, unless and until such disclosure is required by law or
applicable regulation, and then only to the extent of such requirement. The
Company agrees to deliver a copy of any public announcement regarding the
matters covered by this Agreement or any agreement or document executed herewith
to each Investor and any public announcement including the name of an Investor
to such Investor, prior to the publication of such announcements.

         (h) No Piggyback on Registration. Neither the Company nor any of its
security holders may include securities of the Company in the Registration
Statement other than the Registrable Securities, and the Company shall not after
the date hereof enter into any agreement providing any such right to any of its
security holders.

                                       18
<PAGE>   19

         (i) Entire Agreement. This Agreement, together with the other
Transaction Documents and the agreements and documents contemplated hereby and
thereby, contains the entire understanding and agreement of the parties, and may
not be modified or terminated except by a written agreement signed by both
parties.

         (j) Governing Law. This Agreement and the validity and performance of
the terms hereof shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York applicable to contracts executed
and to be performed entirely in such State.

         (k) Severability. The parties acknowledge and agree that the Investors
are not agents, affiliates or partners of each other, that all representations,
warranties, covenants and agreements of the Investors hereunder are several and
not joint, that no Investor shall have any responsibility or liability for the
representations, warrants, agreements, acts or omissions of any other Investor,
and that any rights granted to "INVESTORS" hereunder shall be enforceable by
each Investor hereunder.

         (l) Jury Trial. EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY.

         (m) Titles. The titles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.

         (n) 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 the
Holders of at least a majority of the then issued or issuable Registrable
Securities; provided, however, that, for the purposes of this sentence,
Registrable Securities that are owned, directly or indirectly, by the Company,
or an affiliate of the Company are not deemed outstanding.

                             Signature page follows

                                       19

<PAGE>   20

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

                             ZYMETX, INC.

                             By:
                                 ----------------------------------------------
                                 Norman R. Proulx
                                 Chief Executive Officer

                             PALLADIN OPPORTUNITY FUND, LLC.
                             By:  Palladin Asset Management, L.L.C.
                                  Managing Member

                             By:
                                 ----------------------------------------------
                                  Managing Member

                             HALIFAX FUND, L.P.
                             By:  The Palladin Group, L.P.
                                  Attorney-in-Fact

                             By:  Palladin Capital Management, LLC
                                  General Partner

                             By:
                                 ----------------------------------------------
                                  Robert Chender
                                  Managing Member

                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

<PAGE>   21

                                   SCHEDULE I

INVESTOR

Palladin Opportunity Fund, LLC
195 Maplewood Avenue
Maplewood, N.J. 07040

Halifax Fund, L.P.
195 Maplewood Avenue
Maplewood, N.J. 07040

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