Document:

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                                                                    EXHIBIT 10.4

June 28, 2000

Industrialex Manufacturing Corp.
63-A S. Pratt Parkway
Longmont, CO 80501

Attention:        Ahmad Akrami

Dear Sirs:

Re:   Engagement Agreement -
      Bolder Venture Partners ("BVP") and Industrialex Manufacturing Corp.
      ("Industrialex")

We write further to the December 28, 1999 agreement (the "Engagement Agreement")
made between BVP and Industrialex and to record the following amendment to that
agreement. Specifically, paragraph 3 of the Engagement Agreement shall be
deleted in its entirety and replaced with the following:

"3.  In partial consideration of BVP's services, Industrialex will issue BVP
     warrants (the "Warrants") to purchase 960,000 shares exercisable for a
     period of five years from the date hereof, which will vest in three
     tranches, subject to performance by BVP, as follows:

     o    400,000 of the Warrants will be exercisable upon execution by
          Industrialex of this Agreement, at a price of US$0.25 per share;

     o    360,000 of the Warrants will be exercisable upon completion of the
          Initial Placement, at a price per share equal to the private placement
          price (estimated to be US$1.00 per share);

     o    200,000 of the Warrants will be exercisable upon completion of the
          IPO, at a price per Share equal to the IPO price (estimated to be
          US$1.00 per share);

     The Warrants and any shares issued upon their exercise will have the
     customary anti-dilution protection and demand and piggback registration
     rights, which will be set out in the Warrant certificates. If all of the
     Shares of Industrialex are purchased by a third party, unaffiliated to
     Industrialex, its shareholders, officers or directors, prior to the vesting
     of all of the Warrants in accordance with the foregoing schedule, BVP will
     have no entitlement to exercise any Warrants which have not vested at the
     time of completion of that transaction."

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Please confirm our agreement set forth above by indicating, in the space
indicated below, and returning to us the enclosed copy of this letter.

Sincerely yours,

BOLDER VENTURE PARTNERS LLC

Per:

/s/ Daryl Yurek
------------------------------
Authorized Signatory

Accepted and agreed to as per the terms set forth above this 6th day of July,
2000.

Industrialex Manufacturing Corp.

Per:

/s/ Ahmad Akrami
------------------------------
Authorized Signatory

                                      -2-<PAGE>   1
                                                                  EXHIBIT 10.5

THIS SPECIAL WARRANT CERTIFICATE IS NOT TRANSFERABLE EXCEPT PURSUANT TO AN
EXEMPTION FROM THE PROSPECTUS AND REGISTRATION REQUIREMENTS OF APPLICABLE
SECURITIES LEGISLATION AND OTHERWISE IN COMPLIANCE WITH THE TERMS HEREOF.

                           SPECIAL WARRANT CERTIFICATE

                        INDUSTRIALEX MANUFACTURING CORP.
             (Incorporated under the laws of the State of Colorado)

SPECIAL WARRANT                              ________________ SPECIAL WARRANTS
CERTIFICATE NO. ____                         entitling the holder to acquire,
                                             subject to adjustment, one (1)
                                             share of Common Stock for each
                                             Special Warrant represented hereby.

         THIS IS TO CERTIFY THAT __________________, hereinafter referred to as
the ("holder") is entitled to acquire for each Special Warrant represented
hereby in the manner and subject to the restrictions and adjustments set forth
herein, at any time and from time to time until 4:30 p.m. (mountain standard
time) (the "Time of Expiration") on the earlier of: (i) seven (7) business days
after the day upon which a receipt for a final prospectus is issued to the
Corporation in the Province of Alberta with respect to the distribution of
shares of Common Stock upon exercise of the Special Warrants (the "Prospectus")
or, alternatively, an appropriate order that permits the shares of Common Stock
issuable upon exercise of the Special Warrants to be freely tradeable (the
"Order"), has been obtained from the securities commission or similar regulatory
authority in the Province of Alberta; and (ii) the day which is twelve (12)
months following the Closing Date (such earlier date being referred to as the
"Expiration Date"), one fully paid and non-assessable share of Common Stock of
the Corporation ("Common Share") without nominal or par value of Industrialex
Manufacturing Corp.

         The right to acquire Common Shares may only be exercised by the holder
within the time set forth above by:

         (a)   duly completing and executing the Exercise Form attached hereto;
               and

         (b)   surrendering this Special Warrant Certificate to the Corporation
               at the registered office of the Corporation in the City of
               Longmont, Colorado; or

         (c)   immediately prior to the Time of Expiration, the Special Warrants
               shall be deemed to be exercised and the Common Shares issuable
               thereby shall be deemed to be issued to the holder at such time.

         Upon surrender of these Special Warrants, the person or persons in
whose name or names the Common Shares issuable upon exercise of the Special
Warrants are to be issued shall be deemed for all purposes (except as
hereinafter provided) to be the holder or holders of record of such Common
Shares and the Corporation has covenanted that it will (subject to

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the provisions hereinafter set forth) cause a certificate or certificates
representing such Common Shares to be delivered or mailed to the person or
persons at the address or addresses specified in the Exercise Form within ten
(10) Business Days.

         Immediately prior to the Time of Expiration, the right of a holder to
acquire Common Shares represented hereby will be deemed to have been exercised
and the certificates representing the Common Shares issued thereby may be
obtained upon duly completing and executing the Exercise Form attached hereto
and surrendering this Special Warrant Certificate to the Corporation at the
registered office of the Corporation in the City of Longmont, Colorado.

         The Special Warrants represented by this certificate are issued under
and pursuant to the terms and conditions as set forth and described in Exhibit
"A" attached hereto and made part hereof. Reference is made to Exhibit "A"
attached hereto for a full description of the rights of the holders of the
Special Warrants and the terms and conditions upon which the Special Warrants
are, or are to be, issued and held. By acceptance hereof, the holder assents to
all provisions of Exhibit "A" attached hereto. Capitalized terms used in Exhibit
"A" attached hereto have the meaning herein as therein, unless otherwise
defined.

         In the event of any alteration of the Common Shares, including any
subdivision, consolidation or reclassification, and in the event of any form of
reorganization of the Corporation, including any amalgamation, merger or
arrangement, the holders of Special Warrants shall, upon exercise of the Special
Warrants following the occurrence of any of those events, be entitled to receive
the number and kind of securities that they would hold had they exercised their
Special Warrants immediately prior to the occurrence of those events.

         The holder of this Special Warrant Certificate may, at any time prior
to the Expiration Date, upon surrender hereof to the Corporation at its
registered office in the City of Longmont, Colorado, exchange this Special
Warrant Certificate for other Special Warrant Certificates entitling the holder
to acquire, in the aggregate, the same number of Common Shares as may be
acquired under this Special Warrant Certificate.

         The holding of the Special Warrants evidenced by this Special Warrant
Certificate shall not constitute the holder hereof a shareholder of the
Corporation or entitle the holder to any right or interest in respect thereof
except as expressly provided in this Special Warrant Certificate.

         The Special Warrants evidenced by this Special Warrant Certificate may
be transferred on the register kept at the registered office of the Corporation
by the registered holder hereof or his legal representatives or his attorney
duly appointed by an instrument in writing in form and execution satisfactory to
the Corporation, only upon compliance with the conditions prescribed herein and
upon compliance with such reasonable requirements as the Corporation may
prescribe.

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         This Special Warrant Certificate shall not be valid for any purpose
whatever unless and until it has been duly executed by or on behalf of the
Corporation.

         Time shall be of the essence hereof.

         IN WITNESS WHEREOF the Corporation has caused this Special Warrant
Certificate to be signed by its duly authorized officers as of the 4th day of
April, 2000.

                                            INDUSTRIALEX MANUFACTURING, CORP.

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

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                                   EXHIBIT "A"

                                   ARTICLE 1
                                 INTERPRETATION

1.1  DEFINITIONS

     In this Special Warrant Certificate, including the recitals, face page and
schedules hereto, and in all instruments supplemental hereto:

     (d)  "Adjustment Period" means the period from and including the date of
          issuance of the Special Warrants up to and including the Time of
          Expiration;

     (e)  "Applicable Legislation" means the provisions of the Business
          Corporations Act, S.A. 1981, c. B-15, as from time to time amended,
          and any statute of Canada or a province thereof, and the regulations
          under any such named or other statute and the U.S. Securities Act of
          1933, as amended, and any applicable securities law of any state in
          the United States;

     (f)  "Business Day" means a day which is not Saturday or Sunday or a legal
          holiday in the United States;

     (g)  "Common Shares" means, subject to Section 5.1, fully paid and
          non-assessable shares of common stock of the Corporation as presently
          constituted;

     (h)  "Corporation's Auditors" means a firm of certified public accountants
          duly appointed as auditors of the Corporation;

     (i)  "Counsel" means a lawyer or a firm of lawyers retained by the
          Corporation;

     (j)  "Current Market Price" of the Common Shares at any date means the
          weighted average price per share for such shares for the period of ten
          (10) consecutive Trading Days prior to such date on The Canadian
          Venture Exchange or, if on such date the Common Shares are not listed
          on The Canadian Venture Exchange, on such stock exchange upon which
          such shares are listed and as selected by the directors, or, if such
          shares are not listed on any stock exchange, then on such
          over-the-counter market as may be selected for such purpose by the
          directors;

     (k)  "director" means a director of the Corporation for the time being and,
          unless otherwise specified herein, reference to action "by the
          directors" means action by the directors of the Corporation as a board
          or, whenever duly empowered, action by any committee of such board;

     (l)  "Effective Date" means March 10th, 2000;

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     (m)  "Exercise Date" means, with respect to any Special Warrant, the date
          on which the Special Warrant Certificate representing such Special
          Warrant is surrendered for exercise in accordance with Section 3.1 or
          deemed to be exercised in accordance with Section 3.7;

     (n)  "Expiration Date" means the earlier of:

          (i)  seven (7) Business Days after the day upon which a receipt for a
               Prospectus or an Order has been obtained from the Securities
               Commission or, alternatively, an appropriate order that permits
               the Common Shares issuable upon exercise of the Special Warrants
               to be freely tradeable; and

          (ii) the day which is twelve (12) months following the Closing Date;

     (o)  "Filing Jurisdiction" means the province of Alberta;

     (p)  "Order" means a discretionary order of the Securities Commission that
          permits the Common Shares issuable upon the exercise of the Special
          Warrants to be freely tradeable;

     (q)  "Person" means an individual, body corporate, partnership, trust,
          trustee, executor, administrator, legal representative or any
          unincorporated organization;

     (r)  "Prospectus" means a final prospectus in respect of the distribution
          of Common Shares upon the exercise of Special Warrants;

     (s)  "Shareholder" means a holder of record of one or more Common Shares;

     (t)  "Securities Commission" means the securities commission or similar
          regulatory authority in the Filing Jurisdiction;

     (u)  "Special Warrants" means the special warrants issued and certified
          hereunder and for the time being outstanding entitling the holder to
          acquire Common Shares;

     (v)  "this Special Warrant Certificate", "this Warrant Certificate", "this
          Certificate", "herein", "hereby", "hereof" and similar expressions
          mean and refer to this certificate; and the expressions "Article",
          "Section", "subsection" and "paragraph" followed by a number, letter
          or both mean and refer to the specified article, section, subsection
          or paragraph of this certificate;

     (w)  "Subsidiary of the Corporation" or "Subsidiary" means any corporation
          of which more than fifty (50%) percent of the outstanding Voting
          Shares are owned, directly or indirectly, by or for the Corporation,
          provided that the ownership of such shares confers the right to elect
          at least a majority of the

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          board of directors of such corporation and includes any corporation in
          like relation to a Subsidiary;

     (x)  "Time of Expiration" means 4:30 p.m. (mountain standard time) on the
          Expiration Date;

     (y)  "Trading Day" means, with respect to a stock exchange, a day on which
          such exchange is open for the transaction of business and with respect
          to the over-the-counter market means a day on which The Canadian
          Venture Exchange is open for the transaction of business;

     (z)  "Transfer Agent" means the transfer agent for the time being of the
          Common Shares;

     (aa) "Voting Shares" means shares of the capital stock of any class of any
          corporation carrying voting rights under all circumstances, provided
          that, for the purposes of such definition, shares which only carry the
          right to vote conditionally on the happening of an event shall not be
          considered Voting Shares, whether or not such event shall have
          occurred, nor shall any shares be deemed to cease to be Voting Shares
          solely by reason of a right to vote accruing to shares of another
          class or classes by reason of the happening of any such event;

     (bb) "Warrant Agency" means the registered office of the Corporation in the
          City of Longmont, Colorado, or such other place as may be designated
          in accordance with subsection 3.1(c);

     (cc) "Warrantholders", or "holders" without reference to Common Shares
          means the persons who are registered owners of Special Warrants;

     (dd) "written order of the Corporation", "written request of the
          Corporation", "written consent of the Corporation" and "certificate of
          the Corporation" mean, respectively, a written order, request, consent
          and certificate signed in the name of the Corporation by its Chairman,
          President or a Vice-President, and may consist of one or more
          instruments so executed.

1.2  GENDER AND NUMBER

     Unless herein otherwise expressly provided or unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing gender include all genders.

1.3  INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.

     The division of this Special Warrant Certificate into Articles and
Sections, the provision of a table of contents and the insertion of headings are
for convenience of reference only and shall not affect the construction or
interpretation of this Indenture.

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1.4  DAY NOT A BUSINESS DAY

     In the event that any day on or before which any action is required to be
taken hereunder is not a Business Day, then such action shall be required to be
taken at or before the requisite time on the next succeeding day that is a
Business Day.

1.5  TIME OF THE ESSENCE

     Time shall be of the essence of this Indenture.

1.6  APPLICABLE LAW

     This Special Warrant Certificate shall be construed in accordance with the
corporate laws of Colorado and shall be treated in all respects as Colorado
contracts.

                                   ARTICLE 2
                            TERMS OF SPECIAL WARRANTS

2.1  ISSUE OF SPECIAL WARRANTS

     The Special Warrant Certificate as represented hereby and all other Special
Warrant Certificates issued in conjunction herewith, shall be dated as of the
Effective Date, shall bear such distinguishing letters and numbers as the
Corporation may prescribe, and shall be issuable in any denomination excluding
fractions.

2.2  FORM AND TERMS OF SPECIAL WARRANTS

     (a)  Each Special Warrant shall entitle the holder thereof, upon exercise,
          to acquire one (1) Common Share, subject to adjustment in accordance
          with Article 5 hereof, at any time after the Effective Date and until
          the Time of Expiration at no additional cost to the holder.

     (b)  No fractional Special Warrants shall be issued or otherwise provided
          for hereunder.

2.3  WARRANTHOLDER NOT A SHAREHOLDER

     Except as provided for in subsection 3.2(a), nothing herein or in the
holding of a Special Warrant Certificate or otherwise, shall, in itself, confer
or be construed as conferring upon a Warrantholder any right or interest
whatsoever as a Shareholder or as any other shareholder of the Corporation,
including, but not limited to, the right to vote at, to receive notice of, or to
attend, meetings of shareholders or any other proceedings of the Corporation, or
the right to receive dividends and other distributions.

2.4  SPECIAL WARRANTS TO RANK PARI PASSU

     All Special Warrants shall rank pari passu, whatever may be the actual date
of issue thereof.

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2.5  SIGNING OF SPECIAL WARRANT CERTIFICATES

     The Special Warrant Certificates shall be signed by the President or
Vice-President of the Corporation. The signatures of any such officer may be
mechanically reproduced in facsimile and Special Warrant Certificates bearing
such facsimile signatures shall be binding upon the Corporation as if they had
been manually signed by such officer.

     Notwithstanding that any person whose manual or facsimile signature appears
on any Special Warrant Certificate as an officer may no longer hold office at
the date of such Special Warrant Certificate or at the date of certification or
delivery thereof, any Special Warrant Certificate signed as aforesaid shall,
subject to Section 2.6, be valid and binding upon the Corporation and the holder
thereof shall be entitled to the benefits of this Indenture.

2.6  ISSUE IN SUBSTITUTION FOR WARRANT CERTIFICATES LOST, ETC.

     (a)  In case any Special Warrant Certificate becomes mutilated or is lost,
          destroyed or stolen, the Corporation, subject to applicable law, shall
          issue a new Warrant Certificate of like tenor as the one mutilated,
          lost, destroyed or stolen in exchange for and in place of and upon
          cancellation of such mutilated Warrant Certificate, or in lieu of and
          in substitution for such lost, destroyed or stolen Warrant
          Certificate, and the substituted Warrant Certificate shall be in a
          form approved by the Corporation and the Special Warrants evidenced
          thereby shall be entitled to the benefits hereof and shall rank
          equally in accordance with its terms with all other Special Warrants
          issued or to be issued hereunder.

     (b)  The applicant for the issue of a new Warrant Certificate pursuant to
          this Section 2.6 shall bear the cost of the issue thereof and in case
          of loss, destruction or theft shall, as a condition precedent to the
          issue thereof, furnish to the Corporation such evidence of ownership
          and of the loss, destruction or theft of the Warrant Certificate so
          lost, destroyed or stolen as shall be satisfactory to the Corporation
          in its sole discretion, and such applicant may also be required to
          furnish an indemnity or security in amount and form satisfactory to
          the Corporation, in its sole discretion, and shall pay the reasonable
          charges of the Corporation in connection therewith.

2.7  EXCHANGE OF WARRANT CERTIFICATES

     Warrant Certificates representing any number of Special Warrants may, upon
compliance with the reasonable requirements of the Corporation, be exchanged for
another Warrant Certificate or Warrant Certificates representing the same
aggregate number of Special Warrants as represented under the Warrant
Certificate or Warrant Certificates so exchanged.

     Warrant Certificates may be exchanged only at the Warrant Agency or at any
other place that is designated by the Corporation. Any Warrant Certificate
tendered for exchange shall be cancelled and surrendered by the Warrant Agency
to the Corporation.

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2.8  CHARGES FOR EXCHANGE

     Except as otherwise herein provided, the Warrant Agency may charge to the
holder requesting an exchange a reasonable sum for each new Warrant Certificate
issued in exchange for Warrant Certificate(s), and payment of such charges and
reimbursement of the Corporation for any and all stamp taxes or governmental or
other charges required to be paid shall be made by such holder as a condition
precedent to such exchange.

2.9  TRANSFER AND OWNERSHIP OF SPECIAL WARRANTS

     (a)  The Special Warrants may only be transferred on the register kept at
          the Warrant Agency by the holder or its legal representatives or its
          attorney duly appointed by an instrument in writing in form and
          execution satisfactory to the Corporation only upon surrendering to
          the Corporation of the Warrant Certificates representing the Special
          Warrants to be transferred and upon compliance with:

          (i)   the conditions herein;

          (ii)  such reasonable requirements as the Corporation may prescribe,
                including, but without limitation, the prior written consent of
                the Corporation; and

          (iii) all applicable securities legislation and requirements of
                regulatory authorities to the satisfaction of the Corporation;

          and such transfer shall be duly noted in such register by the
          Corporation. Upon compliance with such requirements, the Corporation
          shall issue to the transferee a Warrant Certificate representing the
          Special Warrants transferred.

     (b)  The Corporation will deem and treat the registered owner of any
          Special Warrant as the beneficial owner thereof for all purposes and
          the Corporation shall not be affected by any notice to the contrary.

     (c)  Subject to the provisions of this Warrant Certificate and applicable
          law, the Warrantholder shall be entitled to the rights and privileges
          attaching to the Special Warrants and the issue of Common Shares by
          the Corporation upon the exercise of Special Warrants by any
          Warrantholder in accordance with the terms and conditions herein
          contained shall discharge all responsibilities of the Corporation with
          respect to such Special Warrants and the Corporation shall not be
          bound to inquire into the title of any such holder.

                                   ARTICLE 3
                          EXERCISE OF SPECIAL WARRANTS

3.1  METHOD OF EXERCISE OF SPECIAL WARRANTS

     (a)  The holder of any Special Warrant may exercise the right conferred on
          such holder to acquire Common Shares by surrendering, after the
          Effective Date

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          and prior to the Time of Expiration, to the Warrant Agency the Warrant
          Certificate with a duly completed and executed exercise form.

          A Warrant Certificate with the duly completed and executed exercise
          form referred to in this subsection 3.1(a) shall be deemed to be
          surrendered only upon personal delivery thereof or, if sent by mail or
          other means of transmission, upon actual receipt thereof at, in each
          case, the Warrant Agency.

     (b)  Any exercise form referred to in subsection 3.1(a) shall be signed by
          the Warrantholder and shall specify:

          (i)   the number of Common Shares which the holder wishes to acquire
                (being equal to those which the holder is entitled to acquire
                pursuant to the Warrant Certificates) surrendered);

          (ii)  the person or persons in whose name or names such Common Shares
                are to be issued;

          (iii) the address or addresses of such persons; and

          (iv)  the number of Common Shares to be issued to each such person if
                more than one is so specified.

          If any of the Common Shares subscribed for are to be issued to a
          person or persons other than the Warrantholder, the Warrantholder
          shall pay to the Corporation or the Warrant Agency on behalf of the
          Corporation, all applicable transfer or similar taxes and the
          Corporation shall not be required to issue or deliver certificates
          evidencing Common Shares unless or until such Warrantholder shall have
          paid to the Corporation, or the Warrant Agency on behalf of the
          Corporation, the amount of such tax or shall have established to the
          satisfaction of the Corporation that such tax has been paid or that no
          tax is due.

     (c)  In connection with the exchange of Warrant Certificates and exercise
          of Special Warrants and compliance with such other terms and
          conditions hereof as may be required, the Corporation has appointed
          the registered office of the Corporation in Longmont, Colorado, as the
          agency at which Warrant Certificates may be surrendered for exchange
          or at which Special Warrants may be exercised. The Corporation may
          from time to time designate alternate or additional places as the
          Warrant Agency and shall give notice to the Warrantholders of any
          change of the Warrant Agency.

3.2  EFFECT OF EXERCISE OF SPECIAL WARRANTS

     (a)  Upon compliance by the holder of any Warrant Certificate with the
          provisions of Section 3.1, and subject to Sections 3.3 and 3.7, the
          Common Shares subscribed for shall be deemed to have been issued and
          the person or persons to whom such Common Shares are to be issued
          shall be deemed to have

                                      A-7
<PAGE>   11

          become the holder or holders of record of such Common Shares on the
          Exercise Date unless the transfer registers of the Corporation shall
          be closed on such date, in which case the Common Shares subscribed for
          shall be deemed to have been issued and such person or persons deemed
          to have become the holder or holders of record of such Common Shares,
          on the date on which such transfer registers are reopened.

     (b)  Within ten (10) Business Days after the Exercise Date with respect to
          a Special Warrant, the Corporation shall cause to be mailed to the
          person or persons in whose name or names the Common Shares so
          subscribed for have been issued, as specified in the subscription, at
          the address specified in such subscription or, if so specified in such
          subscription, cause to be delivered to such person or persons at the
          Warrant Agency where the Warrant Certificate was surrendered, a share
          certificate or certificates for the appropriate number of Common
          Shares subscribed for.

3.3  NO PARTIAL EXERCISE OF SPECIAL WARRANTS; FRACTIONS

     The holder of any Special Warrants may only acquire a number of Common
Shares equal to the number which the holder is entitled to acquire pursuant to
the surrendered Warrant Certificate(s) and no partial exercise of Special
Warrants shall be permitted.

     Notwithstanding anything herein contained including any adjustment provided
for in Article 5, the Corporation shall not be required, upon the exercise of
any Special Warrants, to issue fractions of Common Shares or to distribute
certificates which evidence fractional Common Shares. Fractional interests shall
be rounded down to the next whole Common Share.

3.4  EXPIRATION OF SPECIAL WARRANTS

     Immediately after the Time of Expiration, all rights under any Special
Warrant in respect of which the right of acquisition herein and therein provided
for shall not have been exercised shall cease and terminate and such Special
Warrant shall be void and of no further force or effect except that for holders
whose Special Warrants have been deemed exercised pursuant to Section 3.7, the
Warrant Certificate shall evidence an entitlement to receive Common Shares.

3.5  CANCELLATION OF SURRENDERED SPECIAL WARRANTS

     All Special Warrant Certificates surrendered to the Warrant Agency pursuant
to Sections 2.6, 2.7, 3.1, 3.7, or 5.1 shall be returned to the Corporation for
cancellation.

3.6  ACCOUNTING AND RECORDING

     The Corporation shall account with respect to all Special Warrants
exercised.

     The Corporation shall record the particulars of Special Warrants exercised
which shall include the names and addresses of the persons who become holders of
Common Shares on exercise of the Special Warrants and the Exercise Date.

                                      A-8
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3.7  DEEMED EXERCISE

     At the Time of Expiration, the rights of all holders of Special Warrants to
acquire Common Shares shall be deemed to be exercised and the Common Shares
issuable thereby shall be deemed to be issued to the Warrantholders at such
time.

     The Corporation shall cause to be mailed or, if so specified in the
exercise form, cause to be delivered at the Warrant Agency where the Warrant
Certificate was surrendered, to the person or persons specified in the exercise
form a share certificate or share certificates for the appropriate number of
Common Shares upon actual receipt at the Warrant Agency of the Warrant
Certificate with the duly completed and executed exercise form specifying the
matters referred to in paragraphs 3.1(b)(ii), (iii) and (iv) together with any
payment of the nature referred to in subsection 3.1(b).

3.8  SECURITIES RESTRICTIONS

     Notwithstanding anything herein contained, Common Shares will only be
issued pursuant to any Special Warrant in compliance with the securities laws of
any applicable jurisdiction, and without limiting the generality of the
foregoing, in the event that the Special Warrants are exercised pursuant to
Section 3.1, the certificates representing the Common Shares thereby issued will
bear such legend as may, in the opinion of counsel to the Corporation, be
necessary in order to avoid a violation of any securities laws of any province
in Canada or of the United States or to comply with the requirements of any
stock exchange on which the Common Shares are listed, provided that if, at any
time, in the opinion of counsel to the Corporation, such legends are no longer
necessary in order to avoid a violation of any such laws, or the holder of any
such legended certificate, at the holder's expense, provides the Corporation
with evidence satisfactory in form and substance to the Corporation (which may
include an opinion of counsel satisfactory to the Corporation) to the effect
that such holder is entitled to sell or otherwise transfer such Common Shares in
a transaction in which such legends are not required, such legended certificate
may thereafter be surrendered to the Corporation in exchange for a certificate
which does not bear such legend.

                                   ARTICLE 4
                      ADJUSTMENT OF NUMBER OF COMMON SHARES

4.1  ADJUSTMENT OF NUMBER OF COMMON SHARES

     The acquisition rights in effect at any date attaching to the Special
Warrants shall be subject to adjustment from time to time as follows:

     (a)  if and whenever at any time from the date hereof and prior to the Time
          of Expiration, the Corporation shall:

          (i)  subdivide, redivide or change its outstanding Common Shares into
               a greater number of shares; or

          (ii) reduce, combine or consolidate its outstanding Common Shares into
               a smaller number of shares;

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<PAGE>   13
          the number of Common Shares obtainable under each Special Warrant
          shall be adjusted immediately after the effective date of such
          subdivision, redivision, change, reduction, combination or
          consolidation, by multiplying the number of Common Shares theretofore
          obtainable on the exercise thereof by a fraction of which the
          numerator shall be the total number of Common Shares outstanding
          immediately after such date and the denominator shall be the total
          number of Common Shares outstanding immediately prior to such date.
          Such adjustment shall be made successively whenever any event referred
          to in this subsection shall occur;

     (b)  if and whenever at any time from the date hereof and prior to the Time
          of Expiration, there is a reclassification of the Common Shares or a
          capital reorganization of the Corporation other than as described in
          subsection 4.1(a) or a consolidation, amalgamation or merger of the
          Corporation with or into any other body corporate, trust, partnership
          or other entity, or a sale or conveyance of the property and assets of
          the Corporation as an entirety or substantially as an entirety to any
          other body corporate, trust, partnership or other entity, any
          Warrantholder who has not exercised its right of acquisition prior to
          the effective date of such reclassification, reorganization,
          consolidation, amalgamation, merger, sale or conveyance, upon the
          exercise of such right thereafter, shall be entitled to receive and
          shall accept, in lieu of the number of Common Shares then sought to be
          acquired by it, the number of shares or other securities or property
          of the Corporation or of the body corporate, trust, partnership or
          other entity resulting from such merger, amalgamation or
          consolidation, or to which such sale or conveyance may be made, as the
          case may be, that such Warrantholder would have been entitled to
          receive on such reclassification, capital reorganization,
          consolidation, amalgamation, merger, sale or conveyance, if, on the
          record date or the effective date thereof, as the case may be, the
          Warrantholder had been the registered holder of the number of Common
          Shares sought to be acquired by it. If determined appropriate by the
          Corporation to give effect to or to evidence the provisions of this
          subsection 4.1(b), the Corporation, its successor, or such purchasing
          body corporate, partnership, trust or other entity, as the case may
          be, shall, prior to or contemporaneously with any such
          reclassification, reorganization, consolidation, amalgamation, merger,
          sale or conveyance, enter into an indenture which shall provide, to
          the extent possible, for the application of the provisions set forth
          in this Warrant Certificate with respect to the rights and interests
          thereafter of the Warrantholders to the end that the provisions set
          forth in this Warrant Certificate shall thereafter correspondingly be
          made applicable, as nearly as may reasonably be, with respect to any
          shares, other securities or property to which a Warrantholder is
          entitled on the exercise of its acquisition rights thereafter.

     (c)  the adjustments provided for in this Article 4 in the number of Common
          Shares and classes of securities which are to be received on the
          exercise of Special Warrants are cumulative. After any adjustment
          pursuant to this

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<PAGE>   14

          Section, the term "Common Shares" and "Regular Warrants" where used in
          this Warrant Certificate shall be interpreted to mean securities of
          any class or classes which, as a result of such adjustment and all
          prior adjustments pursuant to this Section, the Warrantholder is
          entitled to receive upon the exercise of its Special Warrants, and the
          number of Common Shares indicated by any exercise made pursuant to a
          Special Warrant shall be interpreted to mean the number of Common
          Shares or other property or securities a Warrantholder is entitled to
          receive, as a result of such adjustment and all prior adjustments
          pursuant to this Section, upon the full exercise of a Special Warrant.

4.2  ENTITLEMENT TO SHARES ON EXERCISE OF SPECIAL WARRANT

     All shares of any class or other securities which a Warrantholder is at the
time in question entitled to receive on the exercise of its Special Warrant,
whether or not as a result of adjustments made pursuant to this Section, shall,
for the purposes of the interpretation hereof, be deemed to be shares which such
Warrantholder is entitled to acquire pursuant to such Special Warrant.

4.3  NO ADJUSTMENT FOR STOCK OPTIONS

     Anything in this Article 4 to the contrary notwithstanding, no adjustment
shall be made in the acquisition rights attached to the Special Warrants if the
issue of Common Shares is being made pursuant to this Warrant Certificate or
pursuant to any stock option or stock purchase plan in force from time to time
for directors, officers or employees of the Corporation.

4.4  DETERMINATION BY CORPORATION'S AUDITORS

     In the event of any question arising with respect to the adjustments
provided for in this Article 4 such question shall be conclusively determined by
the Corporation's Auditors who shall have access to all necessary records of the
Corporation, and such determination shall be binding upon the Corporation, all
Warrantholders and all other persons interested therein.

4.5  PROCEEDINGS PRIOR TO ANY ACTION REQUIRING ADJUSTMENT

     As a condition precedent to the taking of any action which would require an
adjustment in any of the acquisition rights pursuant to any of the Special
Warrants, including the number of Common Shares which are to be received upon
the exercise thereof, the Corporation shall take any corporate action which may,
in the opinion of counsel, be necessary in order that the Corporation has
unissued and reserved in its authorized capital and may validly and legally
issue as fully paid and non-assessable all the shares which the holders of such
Special Warrants are entitled to receive on the full exercise thereof in
accordance with the provisions hereof.

4.6  CERTIFICATE OF ADJUSTMENT

     The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment or readjustment as provided in Article 4,
deliver a

                                      A-11
<PAGE>   15

certificate of the Corporation to the Warrantholders specifying the nature of
the event requiring the same and the amount of the adjustment necessitated
thereby and setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based, which certificate shall be supported
by a certificate of the Corporation's Auditors verifying such calculation.

4.7  NOTICE OF SPECIAL MATTERS

     The Corporation covenants that, so long as any Special Warrant remains
outstanding, it will give notice to the Warrantholders of its intention to fix a
record date that is prior to the Expiration Date for the issuance of rights,
options or warrants (other than the Special Warrants) to all or substantially
all the holders of its outstanding Common Shares. Such notice shall specify the
particulars of such event and the record date for such event, provided that the
Corporation shall only be required to specify in the notice such particulars of
the event as shall have been fixed and determined on the date on which the
notice is given. The notice shall be given in each case not less than five (5)
business days prior to such applicable record date.

4.8  NO ACTION AFTER NOTICE

     The Corporation will not close its transfer books or take any other
corporate action which might deprive the holder of a Special Warrant of the
opportunity to exercise its right of acquisition pursuant thereto during the
period of five (5) Business Days after the giving of the certificate or notices
set forth in Sections 4.6 and 4.7.

                                   ARTICLE 5
                     RIGHTS OF THE CORPORATION AND COVENANTS

5.1  OPTIONAL PURCHASES BY THE CORPORATION

     The Corporation may from time to time purchase by private contract or
otherwise any of the Special Warrants. Any such purchase shall be made at the
lowest price or prices at which, in the opinion of the directors, such Special
Warrants are then obtainable, plus reasonable costs of purchase, and may be made
in such manner, from such persons and on such other terms as the Corporation, in
its sole discretion, may determine. Any Warrant Certificates representing the
Special Warrants purchased pursuant to this Section 5.1 shall forthwith be
cancelled. No Special Warrants shall be issued in replacement thereof.

5.2  GENERAL COVENANTS

     The Corporation covenants that so long as any Special Warrants remain
outstanding:

     (a)  it will reserve and keep available a sufficient number of Common
          Shares for the purpose of enabling it to satisfy its obligations to
          issue Common Shares upon the exercise of the Special Warrants in the
          event that the Corporation does not have an unlimited number of Common
          Shares;

     (b)  it will cause the Common Shares and the certificates representing the
          Common Shares from time to time acquired pursuant to the exercise of
          the

                                      A-12
<PAGE>   16

          Special Warrants to be duly issued and delivered in accordance with
          the Warrant Certificates and the terms hereof;

     (c)  all Common Shares which shall be issued upon exercise of the right to
          acquire provided for- herein and in the Warrant Certificates shall be
          fully paid and non-assessable;

     (d)  it will maintain its corporate existence;

     (e)  if the Corporation pays a dividend or makes any other distribution in
          cash or property or securities of the Corporation (including rights,
          options or warrants to acquire Common Shares or securities convertible
          into or exchangeable for Common Shares and including evidences of its
          indebtedness) to all or substantially all of the holders of Common
          Shares prior to the Expiration Date, the Corporation agrees that it
          will pay the same amount of such dividend or make the same
          distribution of cash, property or securities to the Warrantholders, as
          if the Warrantholders were the holders of the number of Common Shares
          which the Warrantholders are entitled to receive upon the exercise of
          the Special Warrants;

     (f)  it will give a notice to each Warrantholder specifying the particulars
          of each payment or distribution made in accordance with subsection
          5.2(e), within five (5) Business Days of such payment or distribution;

     (g)  generally, it will well and truly perform and carry out all of the
          acts or things to be done by it as provided in this Warrant
          Certificate.

                                   ARTICLE 6
                                    GENERAL

6.1  NOTICE TO THE CORPORATION

     (a)  Unless herein otherwise expressly provided, any notice to be given
          hereunder to the Corporation shall be deemed to be validly given if
          delivered or if sent by registered letter, postage prepaid:

     If to the Corporation:

                   Industrialex Manufacturing Corp.
                   63 South Pratt Parkway
                   Longmont, CO 80501

                   Attention:  Ahmad Akrami, President

          and any such notice delivered in accordance with the foregoing shall
          be deemed to have been received on the date of delivery or, if mailed,
          on the fifth (5th) Business Day following the date of the postmark on
          such notice.

                                      A-13
<PAGE>   17

     (b)  If, by reason of a strike, lockout or other work stoppage, actual or
          threatened, involving postal employees, any notice to be given to the
          Corporation hereunder could reasonably be considered unlikely to reach
          its destination, such notice shall be valid and effective only if it
          is delivered to the named officer of the party to which it is
          addressed or, if it is delivered to such party at the appropriate
          address, by cable, telegram, telex or other means of prepaid,
          transmitted and recorded communication.

6.2  NOTICE TO WARRANTHOLDERS

     (a)  Any notice to the Warrantholders under the provisions of this Warrant
          Certificate shall be valid and effective if sent by telegram, telex or
          telecopier or letter or circular through the ordinary post addressed
          to such holders at their post office addresses appearing on the
          register hereinbefore mentioned and shall be deemed to have been
          effectively given on the date of delivery or, if mailed, five (5)
          Business Days following actual posting of the notice.

     (b)  If, by reason of a strike, lockout or other work stoppage, actual or
          threatened, involving postal employees, any notice to be given to the
          Warrantholders hereunder could reasonably be considered unlikely to
          reach its destination, such notice shall be valid and effective only
          if it is delivered personally to such Warrantholders or if delivered
          to the address for such Warrantholders contained in the register of
          Special Warrants maintained by the Corporation, by cable, telegram,
          telex or other means of prepaid transmitted and recorded
          communication.

6.3  OWNERSHIP AND TRANSFER OF SPECIAL WARRANTS

     The Corporation may deem and treat the registered owner of any Special
Warrants as the absolute owner thereof for all purposes, and the Corporation
shall not be affected by any notice or knowledge to the contrary except where
the Corporation is required to take notice by statute or by order of a court of
competent jurisdiction.

6.4  EVIDENCE OF OWNERSHIP

     Upon receipt of a certificate of any bank, trust company or other
depositary satisfactory to the Corporation stating that the Special Warrants
specified therein have been deposited by a named person with such bank, trust
company or other depositary and will remain so deposited until the expiration of
the period specified therein, the Corporation may treat the person so named as
the owner, and such certificate as sufficient evidence of the ownership by such
person of such Special Warrant during such period, for the purpose of any
requisition, direction, consent, instrument or other document to be made, signed
or given by the holder of the Special Warrant so deposited.

     The Corporation may accept as sufficient evidence of the fact and date of
the signing of any requisition, direction, consent, instrument or other document
by any person (i) the signature of any officer of any bank, trust company, or
other depositary satisfactory to the Corporation as witness of such execution,
(ii) the certificate of any notary public or other officer authorized to take
acknowledgments of deeds to be recorded at the place where such

                                      A-14
<PAGE>   18

certificate is made that the person signing acknowledged to him the execution
thereof, or (iii) a satisfactory declaration of a witness of such execution.

6.5  PROVISIONS OF SPECIAL WARRANTS FOR THE SOLE BENEFIT OF PARTIES AND
     WARRANTHOLDERS

     Nothing in the Warrant Certificates, expressed or implied, shall give or be
construed to give to any person other than the parties hereto and the
Warrantholders, as the case may be, any legal or equitable right, remedy or
claim under this Indenture, or under any covenant or provision herein or therein
contained, all such covenants and provisions being for the sole benefit of the
parties hereto and the Warrantholders.

                                      A-15

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