WARRANT AGREEMENT

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE  THEREOF HAVE

NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR

ANY STATE  SECURITIES  LAWS,  AND MAY NOT BE SOLD,  OFFERED  FOR SALE,  PLEDGED,

HYPOTHECATED  OR  OTHERWISE   TRANSFERRED  UNLESS  THERE  IS  (i)  AN  EFFECTIVE

REGISTRATION  STATEMENT  UNDER  SUCH ACT  RELATED  THERETO,  (ii) AN  OPINION OF

COUNSEL  FOR THE  HOLDER,  REASONABLY  SATISFACTORY  TO THE  COMPANY,  THAT SUCH

REGISTRATION  IS NOT REQUIRED,  (iii) RECEIPT OF A NO-ACTION  LETTER(S) FROM THE

APPROPRIATE GOVERNMENTAL AUTHORITY(IES).

                               IMMUNOMEDICS, INC.

                WARRANT TO PURCHASE 75,000 SHARES OF COMMON STOCK

         IMMUNOMEDICS,  INC., a Delaware  corporation  (the  "Company"),  hereby

certifies  that,  for value  received,  Sutro & Co.  Incorporated  ("Sutro"),  a

_________  corporation,  or its  registered  transferees,  successors or assigns

(each,  a "holder"),  is the registered  holder of warrants (the  "Warrants") to

subscribe for and purchase  SEVENTY-FIVE  THOUSAND  (75,000) shares of the fully

paid and  no assessable  Common Stock (as adjusted pursuant to Section 4 hereof,

the "Warrant Shares") of the Company, at a purchase price per share equal to SIX

DOLLARS AND FIFTY CENTS ($6.50) (such price,  as adjusted  pursuant to Section 4

hereof,  the "Warrant Price"),  subject to the provisions and upon the terms and

conditions  hereinafter set forth.  As used herein,  (a) the term "Common Stock"

shall mean the Company's  presently  authorized Common Stock, par value $.01 per

share,  and any stock  into or for which  such  Common  Stock may  hereafter  be

converted or exchanged, and (b) the term "Date of Grant" shall mean December 16,

1999.  The term  "Warrant" as used herein shall be deemed to include any warrant
issued upon  transfer or partial  exercise of this  Warrant,  unless the context

clearly  requires  otherwise.  This  Warrant is being  issued  pursuant  to that

certain  Letter  Engagement  Agreement (the  "Agreement")  of even date herewith

between the Company and Sutro.

         1.       Term.

         The purchase right represented by this Warrant is exercisable, in whole

or in part, at any time and from time to time from the Date of Grant through and

including  the close of business on December 16, 2004 (the  "Expiration  Date");

provided,  however,  that in the  event  that any  portion  of this  Warrant  is

unexercised  as of the  Expiration  Date,  the terms of Section 2(b) below shall

apply.

<PAGE>

         2.       Exercise.

                  a.       Method of Exercise; Payment; Issuance of New Warrant.

                  Subject to Section 1 hereof, the purchase right represented by

this Warrant may be exercised by the holder hereof, in whole or in part and from

time to time, by the surrender of this Warrant (with the notice of exercise form

attached  hereto as  Exhibit A duly  executed)  at the  principal  office of the

Company, and,  except as otherwise  provided for herein,  by the payment to the

Company of an amount equal to the then applicable Warrant Price multiplied by

the number of Warrant  Shares  then  being  purchased.  The person or persons in

whose name(s) any  certificate(s)  representing  shares of Common Stock shall be

issuable  upon  exercise  of this  Warrant  shall be deemed to have  become  the
holder(s)  of record  of, and shall be treated  for all  purposes  as the record

holder(s) of, the shares represented thereby (and such shares shall be deemed to

have been  issued)  immediately  prior to the close of  business  on the date or

dates upon which this Warrant is  exercised  if exercised  prior to the close of

business on such date; otherwise,  the date of record shall be the next business

day. In the event of any exercise of the rights represented by this Warrant,

certificates  for the shares of Common Stock so purchased  shall be delivered to

the holder  hereof as soon as  possible  after such  exercise  and,  unless this

Warrant has been fully exercised  (including without limitation, exercise

pursuant to Section 2(b) below),  a new Warrant  representing the portion of the

Warrant Shares, if any, with respect to which this Warrant shall not then have

been exercised shall also be issued to the holder hereof as soon as possible.

                  b. Automatic Exercise.  In the event that any portion of this

Warrant remains unexercised as of the Expiration Date and the fair market value

(determined in accordance  with Section 4(i) below) of one share of Common Stock

as of the Expiration Date is greater than the applicable Warrant Price as of the

Expiration  Date,  then this  Warrant  shall be  deemed  to have been  exercised

automatically  immediately prior to the close of business on the Expiration Date

(or,  in the  event  that  the  Expiration  Date  is  not a  business  day,  the

immediately   preceding  business  day)  (the  "Automatic   Exercise  Date")  in

accordance  with  Section  2(c)  below,  and the person  entitled to receive the

shares of Common  Stock  issuable  upon such  exercise  shall be treated for all

purposes  as the  holder  of record  of such  Warrant  Shares as of the close of

business on such  Automatic  Exercise  Date.  This Warrant shall be deemed to be

surrendered  to the  Company on the  Automatic  Exercise  Date by virtue of this

Section  2(b) and without any action by the holder of this  Warrant or any other

person,  upon the payment to the Company of the then  applicable  Warrant  Price

multiplied by the number of Warrant Shares then being  purchased shall be deemed
to be made pursuant to the terms of Section 2(c) below  (without  payment by the

holder of any exercise price or any cash or other consideration). As promptly as

practicable on or after the Automatic Exercise Date but in no event prior to the

date on which this Warrant is surrendered to the Company at the principal office

of the Company, the Company at its expense shall issue and deliver to the person

or persons  entitled to receive the same a certificate or  certificates  for the

number of Warrant Shares issuable upon such exercise, in accordance with Section

2(c).

                                      -2-

<PAGE>

                  c. Cashless  Right to Convert  Warrant into Common Stock;  Net

Issuance.

                           (1)      Right to Convert.

                  In addition to and without  limiting  the rights of the holder

hereof  under the terms of this  Warrant,  the  holder  shall  have the right to

convert this Warrant or any portion thereof (the "Conversion Right") into shares

of Common  Stock as  provided in this  Section  2(c) at any time or from time to

time during the term of this Warrant. Upon exercise of the Conversion Right with

respect to all or a specified  portion of shares  subject to this  Warrant  (the

"Converted  Warrant  Shares"),  the Company shall deliver to the holder (without

payment by the holder of any exercise price or any cash or other  consideration)

that number of shares of fully paid and nonassessable  Common Stock equal to the

quotient  obtained by dividing (i) the value of this  Warrant (or the  specified

portion hereof) on the Conversion  Date (as defined in Section 2(c)(2)  hereof),

which  value  shall be  equal  to (A) the  aggregate  fair  market  value of the
Converted  Warrant  Shares  issuable  upon  exercise  of  this  Warrant  (or the

specified  portion hereof) on the Conversion Date less (B) the aggregate Warrant

Price of the Converted  Warrant Shares  immediately prior to the exercise of the

Conversion  Right by (ii) the fair market value of one (1) share of Common Stock

on the  Conversion  Date.  Expressed  as a  formula,  such  conversion  shall be

computed as follows:

X  =  A - B

      -----

        Y

Where:            X = the number of shares of Common Stock that may be issued to

the holder

Y = the fair  market  value  ("FMV")  of one (1) share of  Common  Stock

A = the aggregate FMV (i.e., FMV x Converted  Warrant Shares)

B = the aggregate Warrant Price (i.e., Converted Warrant Shares x Warrant Price)

No fractional  shares shall be issuable upon exercise of the  Conversion  Right,

and,  if the number of shares to be issued  determined  in  accordance  with the

foregoing  formula is other than a whole  number,  the Company  shall pay to the

holder  an  amount  in cash  equal to the  fair  market  value of the  resulting

fractional  share on the  Conversion  Date.  For  purposes  of Section 9 of this

Warrant,  shares issued pursuant to the Conversion  Right shall be treated as if

they were issued upon the exercise of this Warrant.

                           (2)      Method of Exercise.

     The  Conversion  Right may be exercised  by the holder by the  surrender of

this  Warrant at the  principal  office of the Company  together  with a written
statement  specifying that the holder thereby intends to exercise the Conversion

Right and  indicating  the number of shares  subject to this  Warrant  which are

being  surrendered  (referred  to in  Section  2(c)(1)  hereof as the  Converted

Warrant Shares) in exercise of the Conversion  Right.  Such conversion  shall be

effective  upon  receipt  by the  Company  of this  Warrant  together  with  the

aforesaid written statement,  or on such later date as is specified therein (the

"Conversion  Date").  Certificates  for the shares issuable upon exercise of the

Conversion Right and, if applicable, a new warrant evidencing the balance of the

shares remaining  subject to this Warrant,  shall be issued as of the Conversion

                                      -3-

<PAGE>

Date and shall be  delivered  to the holder as soon as  possible  following  the

Conversion Date.

                           (3)      Determination of Fair Market Value.

                  d.       For purposes of Section 2(c), "fair market  value" of

a share of Common Stock shall have the meaning set forth in Section 4(i) below.

         3.       Stock Fully Paid; Reservation of Shares.

         All Warrant  Shares that may be issued upon the  exercise of the rights

represented  by this  Warrant  will,  upon  issuance  pursuant  to the terms and

conditions  herein,  be fully paid and  nonassessable,  and free from all taxes,

liens,  charges,  and  statutory  pre-emptive  rights with  respect to the issue

thereof.  The Company shall pay all transfer taxes, if any,  attributable to the

issuance of the Warrant Shares upon the exercise of this Warrant,  provided that
such Warrant Shares are issued in the name of the holder of this Warrant. During

the period within which the rights represented by this Warrant may be exercised,

the Company will at all times have  authorized,  and reserved for the purpose of

the issue upon  exercise of the purchase  rights  evidenced by this  Warrant,  a

sufficient  number of shares of its Common  Stock to provide for the exercise of

the rights represented by this Warrant.

         4.       Adjustment of Warrant Price and Number of Shares.

         The number and kind of securities purchasable upon the exercise of this

Warrant and the Warrant Price shall be subject to  adjustment  from time to time

upon the occurrence of certain events, as follows:

                  a.       Intentionally omitted.

                  b.       Merger, Sale, Reclassification.

                  In case of any (i) consolidation or merger (including a merger

in which the Company is the surviving entity), (ii) sale or other disposition of

all or substantially  all of the Company&apos;s assets or distribution of property to

stockholders  (other  than  distributions  payable  out of  earnings or retained

earnings), or (iii) reclassification,  change or conversion of securities of the

class  issuable upon exercise of this Warrant (other than a change in par value,

or from par value to no par value,  or from no par value to par  value,  or as a

result  of a  subdivision  or  combination),  then the  Company  shall  take all

necessary actions  (including but not limited to executing and delivering to the

holder of this Warrant an additional  Warrant or other  instrument,  in form and

substance  acceptable  to the holder of this Warrant such  acceptance  not to be

unreasonably  withheld)  to  ensure  that  the  holder  of  this  Warrant  shall
thereafter  have the right to receive,  at a total  purchase price not to exceed

that payable upon the exercise of the unexercised  portion of this Warrant,  and

in lieu of the shares of Common Stock theretofore issuable upon exercise of this

Warrant,  the kind and amount of shares of stock,  other  securities,  money and

property receivable upon such consolidation,  merger, sale or other disposition,

                                      -4-

<PAGE>

reclassification,  change or  conversion  by a holder of the number of shares of

Common Stock then purchasable under this Warrant. Such new Warrant shall provide

for adjustments that shall be as nearly  equivalent as may be practicable to the

adjustments  provided for in this Section 4. The provisions of this Section 4(b)

shall similarly apply to successive reclassifications, changes and conversions.

                  c.       Subdivision or Combination of Shares.

                  If  the  Company  at  any  time  while  this  Warrant  remains

outstanding and unexpired  shall subdivide or combine its outstanding  shares of

Common Stock, the Warrant Price shall be  proportionately  decreased in the case

of a  subdivision  or increased in the case of a  combination,  effective at the

close of business on the date the subdivision or combination becomes effective.

                  d.       Stock Dividends and Other Distributions.

                  If the Company at any time while this  Warrant is  outstanding

and  unexpired  shall (i) pay a dividend with respect to Common Stock payable in

Common Stock, or (ii) make any other  distribution  with respect to Common Stock

(except any  distribution  specifically  provided for in Section 4(b) or Section

4(c) hereof) of Common Stock, then the Warrant Price shall be adjusted, from and

after  the date of  determination  of  stockholders  entitled  to  receive  such

dividend or  distribution,  to that price  determined by multiplying the Warrant

Price in effect  immediately  prior to such date of  determination by a fraction

(i) the  numerator  of which shall be the total number of Fully  Diluted  Shares

outstanding  immediately  prior to such dividend or  distribution,  and (ii) the

denominator  of  which  shall  be the  total  number  of  Fully  Diluted  Shares

outstanding immediately after such dividend or distribution.

                  e.       Rights Offerings.

                  In case  the  Company  shall,  at any time  after  the Date of

Grant,  issue  rights,  options or warrants  generally  to the holders of equity

securities of the Company, entitling them to subscribe for or purchase shares of

Common Stock (or securities  convertible or exchangeable into Common Stock) at a

price per share of Common  Stock (or having a conversion  or exchange  price per

share of Common  Stock if a security  convertible  or  exchangeable  into Common

Stock) less than the fair market  value per share of Common  Stock on the record

date for such  issuance (or the date of issuance,  if there is no record  date),

the Warrant  Price to be in effect on and after such  record  date (or  issuance

date,  as the case may be) shall be  adjusted  so that it shall  equal the price

determined by multiplying the Warrant Price in effect  immediately prior to such

record  date  (or  issuance  date,  as the case  may be) by a  fraction  (i) the

numerator of which shall be the number of shares of Common Stock  outstanding on

such  record  date (or  issuance  date,  as the case may be) plus the  number of

shares of Common Stock which the aggregate offering price of the total number of

shares of such Common Stock so to be offered (or the aggregate  initial exchange

or  conversion  price of the  exchangeable  or  convertible  securities so to be

offered)  would  purchase  at such fair  market  value on such  record  date (or
issuance  date, as the case may be) and (ii) the  denominator  of which shall be

the  number of  shares  of Common  Stock  outstanding  on such  record  date (or

issuance  date,  as the case may be) plus the  number  of  additional  shares of

Common  Stock to be offered  for  subscription  or  purchase  (or into which the

convertible securities to be offered are initially exchangeable or convertible).

In case such subscription  price may be paid in part or in whole in a form other

                                      -5-

<PAGE>

than cash,  the fair market value of such  consideration  shall be determined by

the  Board of  Directors  of the  Company  in good  faith as set forth in a duly

adopted  board  resolution  certified  by the  Company&apos;s  Secretary or Assistant

Secretary,  provided, that in the event the Board of Directors is unable to make

such a determination,  then the fair market value of such consideration shall be

determined  in the same manner as a Valuation  under  Section  4(i) below.  Such

adjustment shall be made successively  whenever such an issuance occurs;  and in

the event that such rights,  options,  warrants,  or convertible or exchangeable

securities  are  not  so  issued  or  expire  or  cease  to  be  convertible  or

exchangeable before they are exercised, converted, or exchanged (as the case may

be), then the Warrant Price shall again be adjusted to be the Warrant Price that

would then be in effect if such issuance had not occurred,  but such  subsequent

adjustment  shall not  affect  the  number of  Warrant  Shares  issued  upon any

exercise of this Warrant prior to the date such subsequent adjustment is made.

                  f.       Other Special Distributions.

                  In case the Company  shall fix a record date for the making of

a distribution (other than dividends,  distributions or issuances referred to in

Section 4(c), Section 4(d) or Section 4(e) above, and other than cash dividends)

to all holders of shares of Common Stock (including any such  distribution  made

in  connection  with a  consolidation  or  merger in which  the  Company  is the

surviving  corporation)  of evidences of  indebtedness,  assets or  subscription

rights, options,  warrants, or exchangeable or convertible securities containing

the right to subscribe for or purchase shares of any class of equity  securities

of the Company,  the Warrant Price to be in effect on and after such record date

shall be adjusted by multiplying the Warrant Price in effect  immediately  prior

to such record date by a fraction  (i) the  numerator of which shall be the fair

market  value per share of  Common  Stock on such  record  date  (determined  in

accordance  with Section 4(i) below),  less the fair market value (as determined

by the Board of  Directors  of the  Company in good faith as set forth in a duly

adopted  board  resolution  certified  by the  Company&apos;s  Secretary or Assistant

Secretary)  of the portion of the assets or evidences of  indebtedness  so to be

distributed or of such subscription rights,  options,  warrants, or exchangeable

or  convertible  securities  applicable  to one (1)  share of the  Common  Stock

outstanding  as of such record  date,  provided,  that in the event the Board of

Directors is unable to make such a determination,  then the fair market value of

such  consideration  shall be determined in the same manner as a Valuation under

Section 4(i) below,  and (ii) the  denominator of which shall be the fair market

value per share of Common  Stock as  determined  in the manner  set forth  under

Section 4(i) below. Such adjustment shall be made  successively  whenever such a

record date is fixed;  and in the event that such  distribution  is not so made,

the Warrant  Price  shall again be adjusted to be the Warrant  Price which would

then be in effect if such record date had not been  fixed,  but such  subsequent

adjustment  shall not  affect  the  number of  Warrant  Shares  issued  upon any

exercise of this Warrant prior to the date such subsequent adjustment was made.

                                       -6-
<PAGE>

                  g.        Other Issuances of Securities.

                  Shares  outstanding  immediately after such sale and issuance.

Such adjustment shall be made successively whenever such an issuance is made.

                  h.       Adjustment of Number of Shares.

                  Upon each  adjustment  in the  Warrant  Price,  the  number of

Warrant Shares  purchasable  hereunder  shall be adjusted,  to the nearest whole

share,  to the product  obtained  by  multiplying  the number of Warrant  Shares

purchasable  immediately  prior to such  adjustment  in the  Warrant  Price by a

fraction, the numerator of which shall be the Warrant Price immediately prior to

such  adjustment  and the  denominator  of  which  shall  be the  Warrant  Price

immediately thereafter.

                  i.       Determination of Fair Market Value.

                  For purposes of those  provisions of this Warrant  requiring a

determination  in accordance with this Section 4(i), "fair market value" as of a

particular  date (the  "Determination  Date") shall mean (i) for any security if

such security is traded on a national securities  exchange (an "Exchange"),  the

weighted  average (based on daily trading  volume) of the mid-point  between the

daily high and low trading  prices of the  security on each of the last five (5)

trading days prior to the Determination Date reported on such Exchange, (ii) for

any security that is not traded on an Exchange but which is quoted on the Nasdaq

Stock Market ("NASDAQ"), the weighted average (based on daily trading volume) of

the mid-point  between the daily high and low trading prices  reported on NASDAQ
on each of the last five (5) trading days (or if the relevant price or quotation

did not exist on any of such days,  the relevant  price or quotation on the next

preceding business day on which there was such a price or quotation, for a total

of five trading days) prior to the Determination Date, or (iii) for any security

or any  other  asset,  if no price can be  determined  on the basis of the above

methods of valuation, then the judgment of valuation shall be determined in good

faith by the Board of  Directors of the Company,  which  determination  shall be

described  in a  duly  adopted  board  resolution  certified  by  the  Company&apos;s

Secretary  or Assistant  Secretary.  If the Board of Directors of the Company is

unable to determine any Valuation (as defined  below),  the Company shall select

an investment  banking firm of national  reputation which has not had a material

relationship with the Company or any officer of the Company within the preceding

two (2) years,  which shall  determine such Valuation.  Such investment  banking

firm&apos;s determination of such Valuation shall be final, binding and conclusive on

the Company and the holders of all of the  Warrants  issued  hereunder  and then

outstanding,  to the  extent  of the  issuance  or  distribution  to which  such

Valuation  applies.  If the Board of  Directors  of the  Company  was  unable to

determine such  Valuation,  all costs and fees of such  investment  banking firm

shall be borne by the  Company.  For  purposes of this  Section  4(i),  the term

"Valuation" shall mean the  determination,  to be made initially by the Board of

Directors  of the  Company,  of the fair market  value of any asset  pursuant to

clause (iii) above in this paragraph.

                                      -7-

<PAGE>

         5.       Notice of Adjustments.

         Whenever the Warrant Price or the number of Warrant Shares  purchasable
hereunder shall be adjusted pursuant to Section 4 hereof, the Company shall make

a certificate signed by its chief financial officer setting forth, in reasonable

detail,  the event requiring the adjustment,  the amount of the adjustment,  the

method by which such  adjustment was  calculated,  and the Warrant Price and the

number of Warrant  Shares  purchasable  hereunder  after  giving  effect to such

adjustment, which shall be mailed (without regard to Section 11 hereof, by first

class mail, postage prepaid) to the holder of this Warrant.

         6.       Fractional Shares.

         No fractional  shares of Common Stock will be issued in connection with

any exercise hereunder,  but in lieu of such fractional shares the Company shall

make a cash payment  therefor  based on the fair market value (as  determined in

accordance  with  Section  4(i) above) of a share of Common Stock on the date of

exercise.

         7. Compliance  with  Securities Act;  Disposition of Warrant or Warrant

Shares.

                  a.       Compliance with Securities Act.

                  The holder of this Warrant, by acceptance hereof,  agrees that

this Warrant and the shares of Common Stock to be issued upon  exercise  hereof,

are being acquired for  investment and that such holder will not offer,  sell or

otherwise  dispose of this  Warrant,  or any shares of Common Stock to be issued

upon  exercise  hereof  except  under  circumstances  which will not result in a

violation of the Securities  Act of 1933, as amended (the "Act").  Upon exercise

of this Warrant,  the holder  hereof shall confirm in writing,  by executing the

form attached as Schedule 1 to Exhibit A hereto, that the shares of Common Stock
so  purchased  are being  acquired  for  investment  and not with a view  toward

distribution or resale.  All shares of Common Stock issued upon exercise of this

Warrant (unless  registered  under the Act) shall be stamped or imprinted with a

legend in  substantially  the following form: "THE SECURITIES  EVIDENCED  HEREBY

HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR ANY

STATE  SECURITIES  LAWS. NO SALE OR DISPOSITION  MAY BE EFFECTED  WITHOUT (i) AN

EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, (ii) AN OPINION OF COUNSEL FOR

THE HOLDER,  REASONABLY  SATISFACTORY TO THE COMPANY,  THAT SUCH REGISTRATION IS

NOT REQUIRED,  or (iii) RECEIPT OF A NO-ACTION  LETTER(S)  FROM THE  APPROPRIATE

GOVERNMENTAL AUTHORITY(IES)"

                  In addition,  in connection with the issuance of this Warrant,

the holder specifically  represents to the Company by acceptance of this Warrant

as follows:

     (1) The holder is aware of the  Company&apos;s  business  affairs and  financial

condition, and has acquired information about the Company sufficient to reach an

informed  and  knowledgeable  decision to acquire  this  Warrant.  The holder is

acquiring this Warrant for its own account for investment  purposes only and not

with a view to, or for resale in connection with any "distribution"  thereof for

purposes of the Act.

                                      -8-

<PAGE>

     (2) The holder  understands  that this Warrant and the Warrant  Shares have

not  been  registered  under  the  Act in  reliance  upon a  specific  exemption

therefrom,  which  exemption  depends upon,  among other  things,  the bona fide

nature  of  the  holder&apos;s   investment  intent  as  expressed  herein.  In  this
connection,  the holder  understands  that,  in the view of the  Securities  and

Exchange  Commission  (the "SEC"),  the statutory basis for such exemption maybe

unavailable if the holder&apos;s  representation was predicated solely upon a present

intention  to hold the Warrant and the  Warrant  Shares for the minimum  capital

gains period  specified  under  applicable tax laws, for a deferred sale, for or

until an increase or decrease in the market price of the Warrant and the Warrant

Shares, or for a period of one (1) year or any other fixed period in the future.

     (3) The holder further understands that this Warrant and the Warrant Shares

must be held indefinitely unless  subsequently  registered under the Act and any

applicable  state securities  laws, or unless  exemptions from  registration are

otherwise available.

     (4) The holder is aware of the provisions of Rule 144 and 144A, promulgated

under the Act, which, in substance,  permit limited public resale of "restricted

securities" acquired,  directly or indirectly,  from the issuer thereof (or from

an  affiliate  of  such  issuer),  in  a  non-public  offering  subject  to  the

satisfaction  of certain  conditions,  if  applicable,  including,  among  other

things:  the availability of certain public  information about the Company,  the

resale  occurring  not less than one (1) year after the party has  purchased and

paid for the  securities to be sold;  the sale being made through a broker in an

unsolicited  "broker&apos;s  transaction" or in  transactions  directly with a market

maker (as said term is defined  under the  Securities  Exchange Act of 1934,  as

amended) and the amount of securities  being sold during any three-month  period

not exceeding the specified limitations stated therein.

     (5) The holder further  understands that at the time it wishes to sell this

Warrant and the Warrant  Shares there may be no public market upon which to make

such a sale, and that, even if such a public market then exists, the Company may
not be satisfying the current public  information  requirements  of Rule 144 and

144A,  and that,  in such event,  the holder may be precluded  from selling this

Warrant and the Warrant  Shares under Rule 144 and 144A even if the one (1)-year

minimum holding period had been satisfied.

     (6)  The  holder  further   understands  that  in  the  event  all  of  the

requirements of Rule 144 and 144A are not satisfied, registration under the Act,

compliance  with  Regulation  A, or some other  registration  exemption  will be

required;  and  that,  notwithstanding  the fact  that  Rule 144 and 144A is not

exclusive, the Staff of the SEC has expressed its opinion that persons proposing

to sell private  placement  securities  other than in a registered  offering and

otherwise  than pursuant to Rule 144 and 144A will have a substantial  burden of

proof in establishing  that an exemption from registration is available for such

offers or  sales,  and that  such  persons  and  their  respective  brokers  who

participate in such transactions do so at their own risk.

                                      -9-

<PAGE>

                  b. Disposition of Warrant or Warrant Shares.  This Warrant and

the  Warrant  Shares  may be  detached  and  transferred,  in  whole or in part,

separately from the Agreement.

                  With respect to any offer,  sale or other  disposition of this

Warrant, or any Warrant Shares acquired pursuant to the exercise of this Warrant

prior to registration  of such Warrant or Warrant Shares,  the holder hereof and

each  subsequent  holder of this Warrant  agrees to give  written  notice to the

Company prior thereto,  describing  briefly the manner thereof,  together with a

written  opinion  of such  holder&apos;s  counsel,  if  reasonably  requested  by the

Company,  to the  effect  that  such  offer,  sale or other  disposition  may be

effected without  registration or qualification (under the Act as then in effect

or any  federal  or state law then in effect)  of this  Warrant or such  Warrant

Shares and indicating whether or not under the Act certificates for this Warrant

or  such  Warrant  Shares  to be sold  or  otherwise  disposed  of  require  any

restrictive legend as to applicable  restrictions on transferability in order to

ensure  compliance  with  applicable  law.  Promptly upon receiving such written

notice and reasonably  satisfactory  opinion,  if so requested,  the Company, as

promptly as  practicable,  shall notify such holder that such holder may sell or

otherwise dispose of this Warrant or such Warrant Shares, all in accordance with

the terms of the notice  delivered to the Company.  If a determination  has been

made pursuant to this Section 7(b) that the opinion of counsel for the holder is

not  reasonably  satisfactory  to the Company,  the Company  shall so notify the

holder  promptly  after  such   determination   has  been  made.  The  foregoing

notwithstanding,  this  Warrant or such  Warrant  Shares may, as to such federal

laws, be offered,  sold or otherwise disposed of in accordance with Rule 144 and

144A under the Act,  provided  that the Company shall have been  furnished  with

such  information as the Company may reasonably  request to provide a reasonable

assurance  that the  provisions of Rule 144 and 144A have been  satisfied.  Each

certificate  representing  this Warrant or the Warrant  Shares thus  transferred

(except  a  transfer  pursuant  to  Rule  144)  shall  bear a  legend  as to the

applicable  restrictions on  transferability  in order to ensure compliance with

such laws,  unless in the  aforesaid  opinion of counsel  for the  holder,  such

legend is not required in order to ensure compliance with such laws. The Company

may issue stop transfer  instructions to its transfer agent or, if acting as its

own transfer  agent,  the Company may stop transfer on its corporate  books,  in

connection with such restrictions.

         8.       Rights as Stockholders; Information.

 

         No  holder  of this  Warrant,  as such,  shall be  entitled  to vote or

receive  dividends  or be  deemed  the  holder  of  Common  Stock  or any  other

securities  of the Company  which may at any time be  issuable  on the  exercise

hereof for any  purpose,  nor shall  anything  contained  herein be construed to

confer  upon the  holder  of this  Warrant,  as  such,  any of the  rights  of a

stockholder  of the  Company  or any  right  to  vote  for the  election  of the

directors or upon any matter  submitted to stockholders at any meeting  thereof,

or to receive notice of meetings, or to receive dividends or subscription rights

or  otherwise,  until this  Warrant  shall have been  exercised  and the Warrant

Shares  purchasable upon the exercise hereof shall have become  deliverable,  as

provided herein. The foregoing notwithstanding, the Company will transmit to the

holder of this Warrant such information,  documents and reports as are generally

distributed  to the  holders  of any class or series  of the  securities  of the

Company concurrently with the distribution thereof to the stockholders.

                                      -10-

<PAGE>

         9.       Registration Rights

         9.1      Demand Registration Rights

                  a. The  Company  covenants  and agrees  that at any time after

receipt of a written request (a "Demand Registration Request") from holder(s) of

Warrants and/or Warrant Shares (collectively,  the "Securityholders") holding at

least twenty-five  percent (25%) of the Registrable  Securities not already sold

pursuant  to this  Section  9 or Rule 144  under  the  Act,  stating  that  such

Securityholders  desire and intend to have the Company register all or a portion
of the Warrant  Shares then  outstanding  or  issuable  pursuant to  unexercised

Warrants (the  "Registrable  Securities")  for sale, then the Company shall: (i)

promptly  deliver  written  notice  (the  "Registration  Notice")  to all  other

Securityholders of the Company&apos;s receipt of such registration request; (ii) file

with the SEC,  within  forty-five  (45)  days of  delivery  of the  Registration

Notice,  a  registration  statement  on  Form  S-3,  or any  successor  form  of

registration to such form, or, if the Company is ineligible therefore, Form S-1,

or any successor form of  registration  to such form, for an offering to be made

covering all of the Registrable Securities;  (iii) use its best efforts to cause

such registration  statement to be declared effective within ninety (90) days of

delivery of the Registration Notice; and (iv) use its best efforts to cause such

registration  statement to become  effective under the Act and remain  effective

for six (6)  months  or such  shorter  period  as may be  required  if all  such

Registrable  Securities covered by such registration statement are sold prior to

the expiration of such six (6)-month period; provided, however, that the Company

shall be obligated to effect only one such registration pursuant to this Section

9.1. For purposes of this Section 9.1(a), a registration  shall not be deemed to

have  been  effected  unless  a  registration   statement   including  at  least

eighty-five  percent (85%) of the  Registrable  Shares  requested to be included

therein has been  declared  effective  and,  subject to Section  9.3(b)  hereof,

remained  effective for a period of six (6) months (or such shorter period as is

permitted in clause (iv) of the first sentence of this Section 9.1(a)).

                  b. The foregoing Section 9.1(a) notwithstanding,  in the event

of an  underwritten  offering  pursuant to this  Section  9.1,  if the  managing

underwriter of such offering shall advise the  Securityholders  in writing that,

in its  opinion,  the  distribution  of a  specified  portion of the  securities

requested to be included in the registration  would materially  adversely affect

the  distribution of such  securities by increasing the aggregate  amount of the

offering  in excess of the  maximum  amount of  securities  which such  managing

underwriter  believes can reasonably be sold in the  contemplated  distribution,

then the securities to be included in the  registration  shall be reduced in the

following  order: (i) first,  securities  proposed to be included by the Company

and  securities  that  are not  Registrable  Securities  shall  be  excluded  as

determined  by the  Company  and (ii)  second,  Registrable  Securities  will be

excluded  pro rata  among  all of the  Registrable  Securities  requested  to be

included therein. For purposes of this Section 9.1, the Securityholders who have

requested  registration  of Common  Stock to be  acquired  upon the  exercise of

Warrants not theretofore exercised shall furnish the Company with an undertaking

that they or the  underwriters  or other  persons to whom such  Warrants will be

transferred  have undertaken to exercise such Warrants and to sell,  transfer or

otherwise  dispose of the Shares received upon exercise of such Warrants in such

registration.

                                      -11-

<PAGE>

         9.2      Incidental Registration

                  a. Subject to Section 9.2(b) below, the Company  covenants and

agrees that in the event the Company  proposes after the Date of Grant to file a

registration  statement  under  the  Act  with  respect  to any  of  its  equity

securities  (other than pursuant to registration  statements on Form S-4 or Form

S-8 or any successor or similar forms and other than  registrations  pursuant to

Section 9.1 hereof),  whether or not for its own account, then the Company shall

give written notice of such proposed filing to all Securityholders promptly (and

in any event at least twenty (20) days before the anticipated filing date). Such

notice  shall  offer to such  Securityholders,  together  with  others  who have
similar rights,  the opportunity to include in such registration  statement such

number of  Registrable  Securities as they may request  (other than  Registrable

Securities already registered pursuant to a Shelf Registration  Statement).  The

Company shall direct and use its  reasonable  best efforts to cause the managing

underwriter  of a proposed  underwritten  offering  (unless  the  offering is an

underwritten  offering of a class of the Company&apos;s equity  securities other than

Common  Stock and the  managing  underwriter  has advised the Company in writing

that,  in its  opinion,  the  inclusion  in such  offering of Common Stock would

materially  adversely  affect the  distribution  of such offering) to permit the

holders of Registrable  Securities  requested to be included in the registration

to include such Registrable  Securities in the proposed offering and the Company

shall use its reasonable best efforts to include such Registrable  Securities in

such  proposed  offering  on the  same  terms  and  conditions  as  any  similar

securities of the Company included therein. If the offering of which the Company

gives  notice is a public  offering  involving  an  underwriter,  the right of a

Securityholder to registration pursuant to this Section 9.2 shall be conditioned

upon  (i)  such  Securityholder&apos;s  participation  in such  underwriting  and the

inclusion of the Registrable Securities to be sold by such Securityholder in the

underwriting and (ii) such  Securityholder  executing an underwriting  agreement

entered  into by the  Company  which  includes  customary  terms and  conditions

relating to sales by shareholders. The foregoing notwithstanding, in the case of

a  firm  commitment  offering  on  underwriting  terms  appropriate  for  such a

transaction,  other than a registration requested by Securityholders pursuant to

Section 9.1, if any such  managing  underwriter  of  recognized  standing  shall

advise the Company and the Securityholders in writing that, in its opinion,  the

distribution  of all  or a  specified  portion  of  the  Registrable  Securities

requested to be included in the  registration  concurrently  with the securities

being  registered  by  the  Company  would   materially   adversely  affect  the

distribution  of such  securities  by  increasing  the  aggregate  amount of the

offering  in excess of the  maximum  amount of  securities  which such  managing

underwriter  believes can reasonably be sold in the  contemplated  distribution,

then  the  securities  to be  included  in a  registration  which  is a  primary

underwritten offering on behalf of the Company shall be reduced in the following

order: (i) first,  Registrable Securities and such other securities requested to

be included by holders of such other  securities  shall be excluded pro rata and

(ii) second the  securities  the Company  proposes to include  therein  shall be

excluded.

                  b. In the event  that a holder  or  holders  of the  Company&apos;s

securities (other than a Securityholder or Securityholders)  requests,  pursuant

to  rights  granted  to  such  holder  or  holders,  that  the  Company  file  a

registration statement for the public offering of securities and the Company and

the other holders of the Company&apos;s  securities  (including the  Securityholders)

who have rights to be included in such  registration,  request to be included in

                                      -12-

<PAGE>>

such registration and the managing underwriter of such offering shall advise the

Company  and the holders  requesting  inclusion  in the  offering  that,  in its

opinion,  the distribution of a specified portion of the securities requested to

be  included  in  the  registration   would  materially   adversely  affect  the

distribution  of such  securities  by  increasing  the  aggregate  amount of the

offering  in excess of the  maximum  amount of  securities  which such  managing

underwriter  believes can  reasonably be sold in the  contemplated  distribution

then, the securities to be included in the registration  shall be reduced in the

following order:  (i) first, any securities  requested to be included therein by

the  holders  of such other  securities  in such a manner as  determined  by the

Company,  (ii) second  Registrable  Securities shall be excluded pro rata, (iii)
securities  proposed to be included by the Company  shall be excluded  and, (iv)

fourth,  securities  requested  to be included  therein by the holder or holders

making the initial  request for the  registration.  For purposes of this Section

9.2(b),  the Company  agrees to request for inclusion in the  registration  only

that number of securities that the Company  intends,  in good faith, to sell, if

all such securities so requested by the Company were permitted to be included by

the managing underwriter in such registration and sold pursuant thereto.

         9.3      Company&apos;s Obligations

                  a.  In  connection   with  the   registration  of  Registrable

Securities on behalf of the holders thereof (such Securityholders being referred

to herein as "Sellers") in accordance with Section 9.1 or Section 9.2 above, and

in addition to its other  obligations  under this Section 9, the Company  agrees

to:

                           (i)      with  respect to any  registration  pursuant

to  Section  9.1(a)  or  Section  9.1(b),  prepare  and  file  with  the  SEC  a

registration  statement on the form  specified in such section,  with respect to

the Registrable Securities to be registered pursuant to such section, and to use

its best  efforts  to cause  such  registration  statement  to become and remain

effective as provided in such section;

                           (ii)  enter  into  a  cross-indemnity  agreement,  in

customary form, with each underwriter, if any, and each

Seller;

                           (iii)    subject  to the  provisions  of Section  9.1

and Section 9.2 regarding reductions in Registrable Securities to be included in

a registration,  include in the  registration  statement filed with the SEC, the

Registrable  Securities for which requests for registration  have been made (or,

in the  case of a  registration  under  Section  9.1(a),  all  such  Registrable

Securities),   promptly  after  filing  of  such  a  registration  statement  or

prospectus or any  amendments  or  supplements  thereto,  furnish to each Seller

copies  of  all  such  documents  filed  including,   if  requested,   documents

incorporated by reference in the registration statement,  and notify each Seller

of any stop order  issued or  threatened  by the SEC and use its best efforts to

prevent the entry of such stop order or to remove it if entered;

                           (iv) subject to Section 9.3(b), prepare and file with

the SEC such  amendments of and supplements to such  registration  statement and

the  prospectus  used in  connection  therewith as may be necessary to keep such

registration  statement effective with respect to a registration statement under

                                      -13-

<PAGE>

Section  9.1 or  Section  9.2,  for a period of six (6)  months or such  shorter

period as may be required  if all such  Registrable  Securities  covered by such

registration  statement  are sold prior to the  expiration of such period and to

otherwise  comply with the provisions of the Act with respect to the disposition

of all securities  covered by such registration  statement during such period in

accordance with the intended  methods of disposition by the Sellers set forth in

such registration statement;

                           (v) furnish to each Seller and each  underwriter,  if

any, without charge, such number of copies of the registration  statement,  each

amendment and supplement  thereto (in each case including all exhibits thereto),
the  prospectus  included  in  such  registration   statement   (including  each

preliminary  prospectus)  and such other documents as such Seller may reasonably

request in order to facilitate  the  disposition of the  Registrable  Securities

proposed to be sold by such Seller;

                           (vi) use its  reasonable  best efforts to register or

qualify such Registrable Securities under such other securities or Blue Sky laws

of such jurisdictions as any Seller or any such underwriter  reasonably requests

in writing and keep such  registrations or  qualifications in effect for so long

as such  registration  statement  remains  in effect and do any and all acts and

things which may be  reasonably  necessary or advisable to enable such Seller to

consummate the disposition in such  jurisdictions of the Registrable  Securities

owned by such Seller; provided,  however, that the Company shall not be required

to (A) qualify  generally to do business in any jurisdiction  where it would not

otherwise  be  required to qualify but for this  Subsection  9.3(a)(vi),  or (B)

consent to general service of process in any such jurisdiction;

                           (vii)  notify  each  Seller,   at  any  time  when  a

prospectus  relating to such Seller&apos;s  Registrable  Securities is required to be

delivered under the Act, of the occurrence of any event as a result of which the

prospectus included in such registration  statement contains an untrue statement

of a material  fact or omits to state any  material  fact  necessary to make the

statements  therein  not  misleading,  and as  soon  as  practicable  prepare  a

supplement or amendment to such  prospectus so that, as thereafter  delivered to

the purchasers of such Registrable Securities,  such prospectus will not contain

an  untrue  statement  of a  material  fact or omit to state any  material  fact

necessary to make the statements therein not misleading;

                           (viii) cause all such  Registrable  Securities  to be

listed  on any  Exchange  or NASDAQ on which  similar  securities  issued by the

Company are then listed;

                           (ix) provide a transfer  agent,  registrar  and CUSIP

number for all such Registrable  Securities not later than the effective date of

such registration statement;

                           (x) enter into such customary  agreements  (including

an  underwriting  agreement in customary  form) and take all such other  actions

that the Sellers or the  underwriters,  if any,  reasonably  request in order to

expedite or facilitate the disposition of such Registrable Securities;

                                      -14-

<PAGE>

                           (xi) make available for inspection by the Sellers and

their counsel, any underwriter participating in any disposition pursuant to such

registration  statement,  and any counsel retained by any such underwriter,  all

pertinent  financial  and  other  information  and  corporate  documents  of the

Company, and cause the Company&apos;s officers, directors and employees to supply all

information  reasonably requested by any such Seller,  underwriter or counsel in

connection with such registration statement;

                           (xii) with respect to any underwritten  offering, use

its reasonable best efforts to obtain a "cold comfort" letter from the Company&apos;s

independent  public  accountants  in customary form and covering such matters of

the type  customarily  covered by "cold  comfort"  letters as the Sellers or any

underwriter may reasonably request;

 
                           (xiii)  with  respect  to an  underwritten  offering,

obtain an opinion of counsel to the  Company,  addressed  to the Sellers and any

underwriter,  in customary  form and including  such matters as are  customarily

covered  by  such  opinions  in  underwritten  registered  offerings  of  equity

securities  as the  Sellers or any  underwriter  may  reasonably  request,  such

opinion to be reasonably satisfactory in form and substance to each Seller; and

                           (xiv)  otherwise  use its best efforts to comply with

all  applicable  rules and  regulations  of the SEC,  and make  available to its

Securityholders,  as soon  as  reasonably  practicable,  an  earnings  statement

covering the period of at least twelve (12) months  subsequent  to the effective

date of the registration  statement,  which earnings statement shall satisfy the

provisions of Section 11(a) of the Act and Rule 158 thereunder.

                  b. Any other  provisions  of this  Section 9  notwithstanding,

upon  receipt by the  Securityholders  of a written  notice  signed by the chief

executive  officer or chief  financial  officer of the Company to the effect set

forth below,  the Company shall not be obligated  during a reasonable  period of

time (not to exceed ninety (90) days) thereafter (i) to effect any registrations

pursuant  to  this  Section  9 or  (ii)  with  respect  to  an  effective  Shelf

Registration  Statement,  may suspend  the  effectiveness  of such  registration

statement, at any time at which, in the Company&apos;s reasonable judgment, (i) there

is a  development  involving  the  Company  or any of its  affiliates  which  is

material but which has not yet been publicly disclosed or (ii) sales pursuant to

the registration statement would materially and adversely affect an underwritten

public  offering for the account of the Company or any other material  financing

project or a proposed or pending  material merger or other material  acquisition

or material  business  combination  or  material  disposition  of the  Company&apos;s

assets,  to which the Company or any of its affiliates is, or is expected to be,
a party.  In the event a  registration  is  postponed  in  accordance  with this

Section  9.3(b),  (x) the Company must  (unless  otherwise  instructed  by those

holders who requested such registration) file the requested  registration within

nine (9) months  from the date the  Company  first  received  the request of the

holders, (y) the Company may not defer the filing of a requested registration or

suspend the  effectiveness of a Shelf  Registration  Statement  pursuant to this

Section 9.3(b) more than once in any eighteen  (18)-month  period, and (z) there

shall be added to any period  during  which the Company is  obligated  to keep a

registration  effective  the  number  of days for  which  the  registration  was

postponed pursuant to this Section 9.3(b).

                                      -15-

<PAGE>

                  c. The Company may require that each Seller, as a condition to

registering his, her or its Registrable  Securities pursuant hereto, furnish the

Company with such  information  regarding the  distribution  of the  Registrable

Securities  proposed  to be sold by such  Seller as the Company may from time to

time reasonably request in writing.

                  d. Each Seller  agrees  that,  upon receipt of any notice from

the  Company of the  occurrence  of any event of the kind  described  in Section

9.3(a)(vii)  above,  such Seller  shall  forthwith  discontinue  disposition  of

Registrable  Securities  pursuant to the  registration  statement  covering such

Registrable Securities until such Seller&apos;s receipt of copies of the supplemented

or amended  prospectus  contemplated  by Section  9.3(a)(vii)  above and,  if so

directed  by the  Company,  such  Seller  will  deliver to the  Company  (at the

Company&apos;s expense) all copies, other than permanent file copies in such Seller&apos;s

possession,  of the prospectus  covering such Registrable  Securities current at

the time of receipt of such notice. In the event the Company shall give any such

notice,  the period  mentioned in Section  9.3(a)(iv) above shall be extended by

the number of days  during the period from and  including  the date of giving of

such notice to and  including  the date when each Seller shall have received the

copies  of the  supplemented  or  amended  prospectus  contemplated  by  Section

9.3(a)(vii) above.

                  e. The  Company  shall  not file or permit  the  filing of any

registration  or  comparable  statement  which  refers to any  Seller by name or

otherwise as the Seller of any  securities of the Company  unless such reference

to such Seller is agreed to by the Seller or is specifically required by the Act

or any similar federal statute then in force.

         9.4  Fees  and  Expenses.   All  expenses  incident  to  the  Company&apos;s

performance  of or  compliance  with this Warrant shall be borne by the Company,

including without limitation all registration and filing fees, fees and expenses

relating  to filings  with any  Exchange  and/or  NASDAQ,  fees and  expenses of

compliance  with  securities  or  Blue  Sky  laws  in  jurisdictions  reasonably

requested by any Seller or underwriter pursuant to Section 9.3(a)(vi) (including

reasonable  fees and  disbursements  of  counsel  in  connection  with  Blue Sky

qualifications of the Registrable Securities), all word processing,  duplicating

and printing expenses,  messenger and delivery expenses,  fees and disbursements

of counsel for the Company  and one (1)  counsel  for the Sellers  (selected  by

those  Sellers  owning  a  majority  of the  Registrable  Securities),  fees and

expenses  of  independent  public  accountants  (including  the  expenses of any

special  audit  or  "cold  comfort"  letters  required  by or  incident  to such

performance),   fees  and  expenses  of   underwriters   (excluding   discounts,

commissions or fees of underwriters, selling brokers, dealer managers or similar

securities industry professionals  attributable directly to the securities being

registered,  which  discounts,  commissions or fees with respect to any Seller&apos;s

respective  shares shall be paid by such  Seller),  all the  Company&apos;s  internal

expenses  (including,  without  limitation,  all  salaries  and  expenses of its

officers and employees  performing legal or accounting  duties),  the expense of

any  annual  audit,  the  expense of any  liability  insurance  (if the  Company

determines  to  obtain  such  insurance),  the fees  and  expenses  incurred  in

connection  with the listing of the  securities to be registered on any Exchange

and/or  NASDAQ on which such  securities  issued by the Company are then listed,

the reasonable  fees and expenses of any special experts  (including  attorneys)

retained by the Company (if it so desires) in connection with such registration,

and fees and  expenses  of other  persons  retained  by the  Company  (all  such

expenses being herein called "Registration Expenses").

                                      -16-

<PAGE>

         9.5  Participation.  In connection  with the  preparation and filing of

each  registration  statement  under the Act  pursuant  to this  Section  9, the

Company  shall  give  the  Sellers  under  such  registration  statement,  their

underwriters,  if  any,  and  their  respective  counsel  and  accountants,  the

opportunity to participate in the  preparation of such  registration  statement,

each  prospectus  included  therein  or filed with the SEC,  and each  amendment

thereof or  supplement  thereto,  and will give each of them such  access to its

books and records and such  opportunities to discuss the business of the Company

with its officers and the independent  public accountants who have certified its

financial statements as shall be necessary,  in the opinion of such Sellers&apos; and

such underwriters&apos;  respective  counsel,  to conduct a reasonable  investigation

within the meaning of the Act.

 
         9.6      Indemnification

                  a. In the event of any  registration  of any securities of the

Company under the Act, the Company  shall,  and hereby does,  indemnify and hold

harmless in the case of any registration statement filed pursuant to Section 9.1

or Section 9.2 above, the Seller of any Registrable  Securities  covered by such

registration  statement,  its directors,  officers,  employees and agents,  each

other person who  participates as an underwriter in the offering or sale of such

Registrable  Securities and each other person,  if any, who controls such Seller

or any such  underwriter  within the  meaning  of the Act  against  any  losses,

claims,  damages, or liabilities (or actions or proceedings whether commenced or

threatened in respect  thereof),  joint or several,  to which such Seller or any

such  director  or officer or employee or agent or  underwriter  or  controlling

person may become  subject under the Act or  otherwise,  insofar as such losses,

claims, damages, or liabilities (or actions or proceedings, whether commenced or

threatened,  in  respect  thereof)  arise  out of or are based  upon any  untrue

statement or alleged  untrue  statement of any  material  fact  contained in any

registration  statement under which such Registrable  Securities were registered

under  the  Act,  any  preliminary  prospectus,   final  prospectus  or  summary

prospectus  contained therein,  or any amendment or supplement  thereto,  or 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,  and

the  Company  shall  reimburse  such  Seller  and each such  director,  officer,

employee,  agent,  underwriter and controlling person for any legal or any other

expenses  reasonably  incurred  by  them in  connection  with  investigating  or

defending any such loss,  claim,  liability,  action,  or proceeding;  provided,

however,  that the  Company  shall not be liable in any such case to the  extent

that any such loss, claim, damage,  liability (or action or proceeding,  whether

commenced or  threatened  in respect  thereof),  or expense  arises out of or is

based upon an untrue  statement  or alleged  untrue  statement  or  omission  or

alleged  omission  made in such  registration  statement,  any such  preliminary

prospectus,  final prospectus,  summary prospectus,  amendment, or supplement in

reliance  upon and in  conformity  with  written  information  furnished  to the

Company by such Seller for the express purpose of use in the preparation thereof

and, provided, further, that the Company shall not be liable in any such case to

the  extent  that  any  such  loss,  claim,  damage,  liability  (or  action  or

proceeding,  whether commenced or threatened,  in respect  thereof),  or expense

arises  out of such  person&apos;s  failure  to  send  or  give a copy  of the  final

prospectus,  as the same may be then  supplemented  or amended,  within the time

required  by the Act to the  person  asserting  an untrue  statement  or alleged

untrue  statement or omission or alleged  omission if such statement or omission

was  corrected in such final  prospectus.  Such  indemnity  shall remain in full

force and effect  regardless of any  investigation  made by or on behalf of such

Seller  or  any  such  director,   officer,   employee,  agent,  underwriter  or

controlling person and shall survive the transfer of such Registrable Securities

by such Seller.

                                      -17-

<PAGE>

                  b. In the event  that the  Company  includes  any  Registrable

Securities of a prospective Seller in any registration  statement filed pursuant

to Section 9.1 or Section 9.2 above,  such prospective  Seller shall, and hereby

does,  indemnify  and  hold  harmless  the  Company,  its  directors,  officers,

employees and agents,  each other person who  participates  as an underwriter in

the offering or sale of such  Registrable  Securities and each other person,  if

any, who controls the Company or any such underwriter  within the meaning of the

Act  against  any  losses,  claims,  damages,  or  liabilities  (or  actions  or
proceedings  whether  commenced  or  threatened  in respect  thereof),  joint or

several,  to which the  Company or any such  director  or officer or employee or

underwriter or controlling person may become subject under the Act or otherwise,

insofar  as  such  losses,  claims,  damages,  or  liabilities  (or  actions  or

proceedings,  whether commenced or threatened,  in respect thereof) arise out of

or are based  upon any  untrue  statement  or alleged  untrue  statement  of any

material  fact  contained  in  any  registration   statement  under  which  such

Registrable   Securities  were   registered   under  the  Act,  any  preliminary

prospectus,  final prospectus or summary prospectus  contained  therein,  or any

amendment or supplement  thereto,  or 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,  and such prospective Seller shall reimburse

the Company and any such  director,  officer,  employee,  agent,  underwriter or

controlling  person for any legal or any other expenses  reasonably  incurred by

them in  connection  with  investigating  or  defending  any such  loss,  claim,

liability,  action,  or  proceeding  if, and only if, such  statement or alleged

statement  or omission  or alleged  omission  was made in  reliance  upon and in

conformity  with  written  information  furnished  to  the  Company  through  an

instrument duly executed by such Seller specifically  stating that it is for use

in the preparation of such registration statement, preliminary prospectus, final

prospectus, summary prospectus,  amendment, or supplement. In no event shall the

liability of any Seller hereunder be greater in amount than the dollar amount of

the proceeds received by such Seller upon the sale of the Registrable Securities

giving rise to such indemnification  obligation.  Such indemnity shall remain in

full force and effect  regardless of any  investigation  made by or on behalf of

the Company or any such  director,  officer,  employee,  agent,  underwriter  or

controlling person and shall survive the transfer of such Registrable Securities

by such Seller.

 
                  c. The Company shall be entitled to receive  indemnities  from

underwriters,  selling brokers, dealer managers, and similar securities industry

professionals  participating  in the distribution to the same extent as provided

above with  respect  to  information  so  furnished  in writing by such  persons

specifically for inclusion in any prospectus or registration statement.

                  d. Promptly after receipt by an indemnified party of notice of

the  commencement  of any action or proceeding  involving a claim referred to in

this Section 9.6, such indemnified party shall, if a claim in respect thereof is

to be made against an indemnifying  party,  give written notice to the latter of

the  commencement  of such action;  provided,  however,  that the failure of any

                                      -18-

<PAGE>

indemnified  party to give  notice as  provided  herein  shall not  relieve  the

indemnifying  party of its obligations under the preceding  subdivisions of this

Section  9.6,  except to the  extent  that the  indemnifying  party is  actually

prejudiced  by such failure to give  notice.  In case any such action is brought

against an indemnified  party,  unless in such  indemnified  party&apos;s  reasonable

judgment a conflict  of  interest  between  such  indemnified  and  indemnifying

parties  may exist in respect of such  claim,  the  indemnifying  party shall be

entitled to participate in and to assume the defense  thereof,  jointly with any

other indemnifying party similarly notified, to the extent that the indemnifying

party may wish, with counsel reasonably  satisfactory to such indemnified party,

and after notice from the indemnifying  party to such  indemnified  party of its

election so to assume the defense thereof,  the indemnifying  party shall not be

liable to such  indemnified  party for any legal or other expenses  subsequently

incurred  by the  latter in  connection  with the  defense  thereof  other  than
reasonable costs of  investigation.  If, in the indemnified  party&apos;s  reasonable

judgment a conflict  of  interest  between  such  indemnified  and  indemnifying

parties may exist in respect of such claim, the indemnified party may assume the

defense of such claim,  jointly with any other indemnified party that reasonably

determines such conflict of interest to exist, and the indemnifying  party shall

be liable to such indemnified parties for the reasonable legal fees and expenses

of one  counsel  for  all  such  indemnified  parties  and  for  other  expenses

reasonably  incurred  in  connection  with the defense  thereof  incurred by the

indemnified  party.  No  indemnifying  party  shall,  without the consent of the

indemnified party, consent to entry of any judgment or enter into any settlement

of any such action 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, or a covenant not to sue, in respect of such claim or litigation.

No  indemnified  party shall  consent to entry of any judgment or enter into any

settlement  of any such  action  the  defense  of which has been  assumed  by an

indemnifying party without the consent of such indemnifying party.

                  e.  Indemnification and contribution similar to that specified

in this  Section  9.6  (with  appropriate  modifications)  shall be given by the

Company and each  Seller  with  respect to any  required  registration  or other

qualification  of  Registrable  Securities  under  any  Federal  or state law or

regulation of any governmental authority, other than the Act.

                  f. The  indemnification  required by this Section 9.6 shall be

made by  periodic  payments  of the  amount  thereof  during  the  course of the

investigation  or defense,  as and when bills are  received  or  expense,  loss,

damage or liability is incurred.

                  g. If the  indemnification  provided  for in this  Section 9.6

from the indemnifying  party is unavailable to an indemnified party hereunder in

respect of any losses,  claims,  damages,  liabilities,  or expenses referred to

herein,  then the indemnifying  party, in lieu of indemnifying  such indemnified

party,  shall contribute to the amount paid or payable by such indemnified party

as a result  of  losses,  claims,  damages,  liabilities,  or  expenses  in such

proportion as is appropriate  to reflect the relative fault of the  indemnifying

party and  indemnified  party in connection  with the actions which  resulted in

such losses,  claims,  damages,  liabilities,  or expenses, as well as any other

relevant equitable considerations. The relative fault of such indemnifying party

and  indemnified  party shall be determined by reference to, among other things,

whether any action in question, including any untrue or alleged untrue statement

of a material fact or omission or alleged omission to state a material fact, has

                                      -19-

<PAGE>

been made by, or relates to information  supplied by, such indemnifying party or

indemnified  party,  and the  parties&apos;  relative  intent,  knowledge,  access to

information,  and opportunity to correct or prevent such action. The amount paid

or payable by a party as a result of the losses, claims,  damages,  liabilities,

and  expenses  referred  to above  shall be deemed to include any legal or other

fees or  expenses  reasonably  incurred  by such  party in  connection  with any

investigation  or  proceeding.  In no event  shall the  liability  of any Seller

hereunder be greater in amount than the dollar  amount of the proceeds  received

by such Seller upon the sale of the Registrable  Securities  giving rise to such

contribution obligation.  The parties hereto agree that it would not be just and

equitable if contribution pursuant to this Section 9.6(g) were determined by pro

rata  allocation or by any other method of  allocation  which does not take into

account the  equitable  considerations  referred to in this Section  9.6(g).  No

person  guilty of  fraudulent  misrepresentation  (within the meaning of Section

11(f) of the Act) shall be  entitled to  contribution  from any person or entity

who was not guilty of such fraudulent misrepresentation.

         9.7      Assignment of Rights; Termination.

         The  rights  granted  under  this  Section  9 may  be  assigned  to the

transferee of any of the  Registrable  Securities and will terminate on the five

(5) year anniversary of the Expiration Date.

10.  Representations and Warranties.

                  The  Company  represents  and  warrants  to the holder of this

Warrant as follows:

                  a. This Warrant has been duly  authorized  and executed by the

Company and is a valid and binding  obligation  of the  Company  enforceable  in

accordance with its terms,  subject to laws of general  application  relating to

bankruptcy,  insolvency  and the  relief  of  debtors  and the  rules  of law or

principles at equity governing specific performance, injunctive relief and other

equitable remedies;

                  b. The Warrant  Shares have been duly  authorized and reserved

for  issuance  by the Company  and,  when  issued in  accordance  with the terms

hereof, will be validly issued, fully paid and nonassessable;

                  c.  The  rights,  preferences,   privileges  and  restrictions

granted to or imposed upon the Common  Stock and the holders  thereof are as set

forth in the certificate of incorporation of the Company, as amended to the Date

of Grant (as so amended,  the "Charter"),  a true and complete copy of which has
been delivered to the original holder of this Warrant;

                  d. The execution and delivery of this Warrant are not, and the

issuance of the Warrant Shares upon exercise of this Warrant in accordance  with

the terms  hereof will not be,  inconsistent  with the Charter or by-laws of the

Company,  do  not  and  will  not  contravene,  in  any  material  respect,  any

governmental  rule or regulation,  judgment or order  applicable to the Company,

and do not and will  not  conflict  with or  contravene  any  provision  of,  or

constitute  a  default  under,  any  indenture,   mortgage,  contract  or  other

instrument  of which the  Company  is a party or by which it is bound or require

the consent or approval of, the giving of notice to, the  registration or filing

                                      -20-

<PAGE>

with or the taking of any action in  respect  of or by,  any  Federal,  state or

local government  authority or agency or other person,  except for the filing of

notices  pursuant to federal and state  securities  laws,  which filings will be

effected by the time required thereby;

                  e. There are no  actions,  suits,  audits,  investigations  or

proceedings pending or, to the knowledge of the Company,  threatened against the

Company in any court or before any governmental  commission,  board or authority

which,  if  adversely  determined,  will have a material  adverse  effect on the

ability of the Company to perform its obligations under this Warrant;

                  f. Intentionally omitted.

                  g. Intentionally omitted.

 

                  h. The Company is not subject to any obligation (contingent or

otherwise)  to  repurchase  or  otherwise  acquire  or retire  any shares of its

capital stock or any security  convertible  into or exchangeable  for any of its

capital stock.

         10.      Modification and Waiver.

         This  Warrant  and  any  provision  hereof  may  be  changed,   waived,

discharged  or terminated  only by an instrument in writing  signed by the party

against which enforcement of the same is sought.

         11.      Notices.

         Unless otherwise specifically provided herein, all communications under

this Warrant shall be in writing and shall be deemed to have been duly given (i)

on the date of service if served personally on the party to whom notice is to be

given,  (ii) on the day of transmission  if sent by facsimile  transmission to a

number  provided  to a party  specifically  for such  purposes,  and  telephonic

confirmation of receipt is obtained  promptly after  completion of transmission,

(iii) on the day after delivery to Federal Express or similar overnight courier,

or (iv) on the fifth day after mailing, if mailed to the party to whom notice is

to be given, by first class mail, registered or certified,  postage prepaid, and

properly addressed, return receipt requested, to each such holder at its address

as shown on the books of the Company or to the Company at the address  indicated

therefor on the signature page of this Warrant.  Any party hereto may change its

address for purposes of this Section 11 by giving the other party written notice

of the new address in the manner set forth herein.

 
                                      -21-

<PAGE>

         12.      Binding Effect on Successors.

         This  Warrant  shall be binding  upon any  corporation  succeeding  the

Company by merger,  consolidation or acquisition of all or substantially  all of

the Company&apos;s assets,  and all of the obligations of the Company relating to the

Common Stock  issuable  upon the exercise or  conversion  of this Warrant  shall

survive the exercise,  conversion and termination of this Warrant and all of the

covenants  and  agreements  of the  Company  shall  inure to the  benefit of the

successors  and assigns of the holder  hereof.  The Company will, at the time of

the exercise or conversion of this Warrant, in whole or in part, upon request of

the holder  hereof but at the  Company&apos;s  expense,  acknowledge  in writing  its

continuing obligation to the holder hereof in respect of any rights to which the

holder hereof shall continue to be entitled after such exercise or conversion in

accordance with this Warrant; provided, that the failure of the holder hereof to

make any such request shall not affect the continuing  obligation of the Company

to the holder hereof in respect of such rights.

         13.      Lost Warrants or Stock Certificates.

         The  Company  covenants  to the holder  hereof  that,  upon  receipt of

evidence reasonably satisfactory to the Company of the loss, theft,  destruction

or mutilation of this Warrant or any stock  certificate  and, in the case of any

loss, theft or destruction,  upon receipt of an executed lost securities bond or

indemnity  reasonably  satisfactory  to the Company,  or in the case of any such

mutilation upon surrender and cancellation of such Warrant or stock certificate,

the Company  will make and deliver a new Warrant or stock  certificate,  of like
tenor,  in lieu of the lost,  stolen,  destroyed or  mutilated  Warrant or stock

certificate.

         14.      Descriptive Headings.

         The descriptive  headings of the several paragraphs of this Warrant are

inserted for convenience only and do not constitute a part of this Warrant.

         15. Governing Law. The validity, interpretation and performance of this

Warrant shall be governed by, and construed in accordance  with, the laws of the

State of California  applicable to contracts  made and to be performed  entirely

within such State,  regardless of the law that might be applied under principles

of conflicts of law.

         16. Survival of Representations, Warranties and Agreements. Each of the

respective  representations  and warranties of the Company and the holder hereof

contained  herein shall survive the Date of Grant, the exercise or conversion of

this  Warrant (or any part  hereof) and the  termination  or  expiration  of any

rights hereunder.  Each of the respective  agreements of each of the Company and

the holder hereof  contained herein shall survive  indefinitely  until, by their

respective terms, they are no longer operative.  Without limiting the generality

of the foregoing sentence,  the registration rights contained in Section 9 above

shall  survive the exercise or  conversion  of this Warrant (or any part hereof)

and the termination or expiration of any other rights hereunder.

                                      -22-

<PAGE>

         17.      Remedies.

 
         In case any one (1) or more of the covenants and  agreements  contained

in this Warrant shall have been  breached,  the holders hereof (in the case of a

breach by the  Company),  or the  Company (in the case of a breach by a holder),

may proceed to protect and enforce  their or its rights either by suit in equity

and/or by action at law, including, but not limited to, an action for damages as

a result of any such breach  and/or an action for  specific  performance  of any

such covenant or agreement contained in this Warrant.

         18.      Acceptance.

         Receipt  of  this  Warrant  by  the  holder  hereof  shall   constitute

acceptance of and agreement to the foregoing terms and conditions.

         19.      No Impairment of Rights.

         The Company  will not, by amendment of its Charter or through any other

means,  avoid or seek to avoid the observance or performance of any of the terms

of this Warrant,  but will at all times in good faith assist in the carrying out

of all such terms and in the taking of all such  action as may be  necessary  or

appropriate in order to protect the rights of the holder of this Warrant against

material impairment.

         20. Amendment.  This Warrant may be amended by written agreement of the

Company  and  holders  of  65%  of  the  Warrant  Shares,   collectively  on  an

as-exercised  basis,  and such amendment shall be binding on all holders of this

Warrant or Warrant Shares.

[Signature page follows.]

 
 

                                      -23-

<PAGE>

IN WITNESS  WHEREOF,  the Company has caused this  Warrant to be executed on its

behalf by one of its officers thereunto duly authorized.

IMMUNOMEDICS, INC.

         By:   /s/ David M. Goldenberg

               Name:  David M. Goldenberg

               Title: Chairman and Chief Executive Officer

               Address:

Dated:  as of December 16, 1999