<PAGE>

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER FEDERAL OR
APPLICABLE STATE SECURITIES LAWS AND INSTEAD ARE BEING ISSUED PURSUANT TO
EXEMPTIONS CONTAINED IN SAID LAWS. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH
RESPECT TO SUCH SECURITIES SHALL BE EFFECTIVE UNDER THE SECURITIES ACT OF 1933
(THE "SECURITIES ACT") OR (2) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO IT THAT NO VIOLATION OF THE SECURITIES ACT OR
SIMILAR STATE ACTS WILL BE INVOLVED IN SUCH TRANSFER; PROVIDED THAT IN THE EVENT
SUCH SECURITIES ARE TRANSFERRED PURSUANT TO RULE 144, OR ANY SUCCESSOR RULE,
UNDER THE SECURITIES ACT, NO SUCH OPINION SHALL BE REQUIRED UNLESS REQUESTED IN
WRITING BY THE TRANSFER AGENT OF SUCH SECURITIES. THE SECURITIES EVIDENCED
HEREBY ARE SUBJECT TO THE TERMS OF A CERTAIN SECURITIES PURCHASE AGREEMENT
PROVIDING, AMONG OTHER THINGS, FOR CERTAIN RESTRICTIONS ON TRANSFER WITHOUT THE
CONSENT OF THE COMPANY. A COPY OF SUCH SECURITIES PURCHASE AGREEMENT MAY BE
OBTAINED UPON WRITTEN REQUEST TO THE COMPANY.

                                     WARRANT

                                       TO

                              PURCHASE COMMON STOCK

                                       OF

                            RAKO CAPITAL CORPORATION

          This certifies that, for good and valuable consideration, Rako Capital
Corporation, a Nevada corporation (the "Company"), grants to Stanford Venture
Capital Holdings, Inc.. or its registered assigns (the "Warrantholder"), the
right to subscribe for and purchase from the Company the number of duly
authorized and validly issued fully paid and non-assessable shares of common
stock, par value $0.001 per share, of the Company (the "Common Stock") set forth
in Subsection 1.1 at the Exercise Price (as defined in Subsection 1.2). This
Warrant shall be exercisable at any time, and from time to time, from and after
the date hereof (the "Initial Exercise Date") to and including 5:00 P.M.,
Central Standard Time on the date that is five years after the Initial Exercise
Date (the "Expiration Date"). The Exercise Price and the number of Warrant
Shares are subject to adjustment from time to time as provided in Section 6.

SECTION 1.  NUMBER OF WARRANT SHARES; EXERCISE PRICE.

     1.1. NUMBER OF WARRANT SHARES. The Warrantholder shall initially have the
right to subscribe for and purchase hereunder 210,329 shares of Common Stock
(the "Warrant Shares"). The number of Warrant Shares that the Warrantholder
shall have the right to subscribe for and purchase from the Company is subject
to adjustment as provided in Section 6.

<PAGE>

     1.2. EXERCISE PRICE. The exercise price per Warrant Share shall be $2.50,
subject to adjustment as provided in Section 6 (the "Exercise Price").

SECTION 2.  DURATION AND EXERCISE OF WARRANT; LIMITATION ON EXERCISE; TAXES;
            TRANSFER; DIVISIBILITY.

     2.1. DURATION AND EXERCISE OF WARRANT. This Warrant is immediately
exercisable on the Initial Exercise Date and may be exercised, in whole or in
part, at any time and from time to time from and after the Initial Exercise Date
to the Expiration Date. The rights represented by this Warrant may be exercised
by the Warrantholder of record, in whole or in part, from time to time, by (a)
surrender of this Warrant, accompanied by the Exercise Form annexed hereto (the
"Exercise Form") duly executed by the Warrantholder of record and specifying the
number of Warrants Shares to be purchased to the Company at the office of the
Company located at Two North College Avenue, Fayetteville, AR 72701, Attention:
Lisa Trammell (or such other office or agency of the Company as it may designate
by notice to the Warrantholder at the address of such Warrantholder appearing on
the books of the Company), during normal business hours on any day (a "Business
Day") other than a Saturday, Sunday or a day on which the New York Stock
Exchange is authorized to close (a "Nonbusiness Day"), or after 9:00 A.M.
Central Standard Time on the Initial Exercise Date, but not later than 5:00 P.M.
Central Standard Time on the Expiration Date (or 5:00 P.M. on the next
succeeding Business Day, if the Expiration Date is a Nonbusiness Day), (b)
payment of the Exercise Price by delivery to the Company of (i) cash or
certified or official bank check in New York Clearing House Funds, of an amount
equal to the Exercise Price for the number of Warrant Shares specified in the
Exercise Form, and/or (ii) notice that the Warrantholder elects to effect a
cashless exercise as contemplated by Subsection 2.6, and (c) such documentation
as to the identity and authority of the Warrantholder as the Company may
reasonably request. Such Warrant Shares shall be deemed by the Company to be
issued to the Warrantholder as the record holder of such Warrant Shares as of
the close of business on the date on which this Warrant shall have been
surrendered and payment made for the Warrant Shares as aforesaid. Certificates
for the Warrant Shares specified in the Exercise Form shall be delivered to the
Warrantholder as promptly as practicable, and in any event within ten (10)
Business Days, thereafter. The stock certificates so delivered shall be in
denominations as may be specified by the Warrantholder and shall be issued in
the name of the Warrantholder or, if permitted by Subsection 2.4 and in
accordance with the provisions thereof, such other name as shall be designated
in the Exercise Form. If this Warrant shall have been exercised only in part,
the Company shall, at the time of delivery of the certificates for the Warrant
Shares, deliver to the Warrantholder a new Warrant evidencing the rights to
purchase the remaining Warrant Shares, which new Warrant shall in all other
respects be identical with this Warrant. No adjustments or payments shall be
made on or in respect of Warrant Shares issuable on the exercise of this Warrant
for any cash dividends paid or payable to holders of record of Common Stock
prior to the date as of which the Warrantholder shall be deemed to be the record
holder of such Warrant Shares.

     2.2. LIMITATION ON EXERCISE. If this Warrant is not exercised prior to 5:00
P.M. Central Standard Time on the Expiration Date (or the next succeeding
Business Day, if the Expiration Date is a Nonbusiness Day), this Warrant, or any
new Warrant issued pursuant to Subsection 2.1, shall cease to be exercisable and
shall become void, and all rights of the Warrantholder hereunder shall cease.


                                       2
<PAGE>

     2.3. PAYMENT OF TAXES. The issuance of certificates for Warrant Shares
shall be made without charge to the Warrantholder for any stock transfer or
other issuance tax in respect thereto; provided, however, that the Warrantholder
shall be required to pay any and all taxes which may be payable in respect of
any transfer involved in the issuance and delivery of any certificates for
Warrant Shares in a name other than that of the then Warrantholder as reflected
upon the books of the Company.

     2.4. RESTRICTIONS ON TRANSFER. Other than transfers to Affiliates (as that
term is defined in the Company's Stockholders Agreement), neither this Warrant
nor any of the Warrant Shares may be transferred or sold, in whole or in part,
without the prior written consent of the Company and except in compliance with
applicable United States federal and state securities laws. Subject to the
foregoing, this Warrant and all rights hereunder are transferable, in whole or
in part, by the Warrantholder and any such transfer is registrable at the office
of the Company referred to in Subsection 7.5(a) by the Warrantholder in person
or by its duly authorized attorney, upon surrender of this Warrant in accordance
with Section 4. The Company may not transfer or assign any of its rights or
obligations under this Warrant, or any portion thereof.

     2.5. DIVISIBILITY OF WARRANT. This Warrant may be divided into multiple
warrants upon surrender at the office of the Company referred to in Subsection
7.5(a) on any Business Day, without charge to the Warrantholder.

     2.6. CASHLESS EXERCISE. At the option of the Warrantholder, the
Warrantholder may exercise this Warrant, without a cash payment of the Exercise
Price, through a reduction in the number of Warrant Shares issuable upon the
exercise of the Warrant. Such reduction may be effected by designating that the
number of the shares of Common Stock issuable to the Warrantholder upon such
exercise shall be reduced by the number of shares having an aggregate Fair
Market Value as of the date of exercise equal to the amount of the total
Exercise Price for such exercise. For purposes of this Warrant, the "Fair Market
Value" of the Common Stock on any date in question shall be the average closing
sale price of the Common Stock on the principal stock exchange, stock market or
quotation market on which the Common Stock is traded for the thirty (30)
Business Days immediately preceding such date, as quoted in The Wall Street
Journal or other nationally recognized, reputable publication. If the Common
Stock is not listed or qualified for trading or quotation on a stock exchange or
stock market or national quotation system at such time, then the Fair Market
Value shall be determined using such method as the Warrantholder and the Company
shall agree. In connection with any cashless exercise, no cash or other
consideration will be paid by the Warrantholder in connection with such exercise
other than the surrender of the Warrant itself, and no commission or other
remuneration will be paid or given by the Warrantholder or the Company in
connection with such exercise.

SECTION 3.  RESERVATION OF SHARES.

     All Warrant Shares issued upon the exercise of the rights represented by
this Warrant, upon issuance and payment of the Exercise Price in accordance with
the terms of this Warrant, shall be validly issued, fully paid and
non-assessable and free from all taxes, liens, security interests, charges and
other encumbrances with respect to the issuance thereof other than taxes in
respect of any transfer occurring contemporaneously with such issuance. The
issuance of the


                                       3
<PAGE>

Warrant Shares pursuant hereto will not be subject to, and will not violate, any
preemptive or similar rights. During the period within which this Warrant may be
exercised, the Company shall at all times have authorized and reserved, and keep
available and free from preemptive or similar rights, a sufficient number of
shares of Common Stock to provide for the exercise of this Warrant and of all
other options or rights to purchase or subscribe for Common Stock and the
conversion or exchange of all convertible or exchangeable securities of the
Company.

SECTION 4.  EXCHANGE, LOSS OR DESTRUCTION OF WARRANT.

     If permitted by Subsection 2.4 or 2.5, upon surrender of this Warrant to
the Company with a duly executed instrument of assignment and funds sufficient
to pay any transfer tax, the Company shall, without charge, execute and deliver
a new Warrant of like tenor in the name of the assignee named in such instrument
of assignment and this Warrant shall promptly be canceled. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, the Company will execute and deliver
a new Warrant of like tenor.

SECTION 5.  OWNERSHIP OF WARRANT.

     The Company may deem and treat the person or entity in whose name this
Warrant is registered as the holder and owner hereof (notwithstanding any
notations of ownership or writing hereon made by anyone other than the Company)
for all purposes and shall not be affected by any notice to the contrary, until
presentation of this Warrant for registration of transfer as provided in
Subsections 2.1 and 2.5 or in Section 4.

SECTION 6.  CERTAIN ADJUSTMENTS.

     The Exercise Price at which Warrant Shares may be purchased hereunder and
the number of Warrant Shares to be purchased upon exercise hereof are subject to
change or adjustment as follows:

     6.1. NOTICE OF ADJUSTMENT. Whenever the number of Warrant Shares or the
Exercise Price of such Warrant Shares is adjusted, as herein provided, the
Company shall promptly send by first class mail, postage prepaid, to the
Warrantholder, notice of such adjustment.

     6.2. PRESERVATION OF PURCHASE RIGHTS UPON MERGER, CONSOLIDATION. In case of
any consolidation of the Company with or merger of the Company with or into
another entity or in case of any sale, transfer or lease to another entity of
all or substantially all the assets or stock of the Company, the Warrantholder
shall have the right thereafter upon payment of the Exercise Price in effect
immediately prior to such action to receive upon exercise of this Warrant the
kind and amount of shares and other securities and property which such holder
would have been entitled to receive after the happening of such consolidation,
merger, sale, transfer or lease had this Warrant been exercised immediately
prior to such action, and the Company or such successor or purchasing entity, as
the case may be, shall execute with the Warrantholder an agreement to that
effect. Such agreement shall provide for


                                       4
<PAGE>

adjustments, which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 6. The provisions of this Subsection
6.2 shall apply similarly to successive consolidations, mergers, sales,
transfers or leases.

     6.3. ADJUSTMENTS.

          (a)     Stock Dividends, Distributions or Subdivisions. In the event
                  the Company at any time or from time after the date hereof
                  shall issue additional shares of Common Stock pursuant to a
                  stock dividend, stock distribution, subdivision, share split
                  or reclassification, then, and in each such case, concurrently
                  with the effectiveness of such event, the Exercise Price in
                  effect immediately prior to such event shall be
                  proportionately decreased with the number of Warrant Shares
                  purchasable upon exercise of this Warrant immediately prior to
                  such event shall be proportionately increased.

          (b)     Combinations or Consolidations. In the event the outstanding
                  shares of Common Stock shall be combined or consolidated, by
                  reclassification, reverse split or otherwise, into a lesser
                  number of shares of Common Stock, concurrently with the
                  effectiveness of such event, the Exercise Price in effect
                  immediately prior to such event shall be proportionately
                  increased and the number of Warrant Shares purchasable upon
                  exercise of this Warrant immediately prior to such event shall
                  be proportionately decreased.

          (c)     Issuance of Additional Shares of Common Stock.

                  (i)     In the event the Company at any time or from time to
                          time after the date hereof shall issue or sell
                          Additional Shares (as defined below) without
                          consideration or for a consideration per share less
                          than the Exercise Price in effect immediately prior to
                          the issuance, then the Exercise Price shall be reduced
                          to the price at which such Additional Shares are
                          issued. The total number of shares of Common Stock to
                          be purchased under the Warrant shall be increased by
                          dividing the new Exercise Price into the aggregate
                          exercise amount of the Warrant prior to the lowering
                          of the Exercise Price.

                  (ii)    In the event the Company shall issue Additional Shares
                          for a consideration per share less than the Fair
                          Market Value of the Common Stock as of the date of
                          such issuance, but greater than the Exercise Price in
                          effect immediately prior to the issuance, then the
                          Exercise Price shall be reduced (but in no event
                          increased) to the amount determined by multiplying
                          such Exercise Price by a fraction:


                                       5
<PAGE>

                          (A)    the numerator of which is the number of shares
                                 of Common Stock outstanding immediately prior
                                 to the issuance of such Additional Shares plus
                                 the number of shares of Common Stock that the
                                 aggregate consideration, if any, received by
                                 the Company for the Additional Shares so issued
                                 would purchase at a price equal to the Fair
                                 Market Value of the Common Stock as of the date
                                 of issuance; and

                          (B)    the denominator of which is the number of
                                 shares of Common Stock outstanding immediately
                                 prior to the issuance of such Additional Shares
                                 plus the number of Additional Shares so issued.
                                 The total number of shares of Common Stock to
                                 be purchased under the Warrant shall be
                                 increased by dividing the new Exercise Price
                                 into the aggregate exercise amount of the
                                 Warrant prior to the lowering of the Exercise
                                 Price.

                  (iii)   If the Company issues Common Stock for a consideration
                          in whole or in part other than cash, the consideration
                          other than cash shall be deemed to be the fair value
                          thereof as determined by mutual agreement of the
                          Warrantholder and the Company.

                  (iv)    If the Company issues options or rights to purchase or
                          subscribe for Common Stock, securities convertible
                          into or exchangeable for Common Stock or options or
                          rights to purchase or subscribe for such convertible
                          or exchangeable securities, the following provisions
                          shall apply for all purposes of calculating the number
                          of shares of Common Stock outstanding under this
                          Subsection 6.3 upon the Exercise of the Warrants:

                          (A)    The aggregate maximum number of shares of
                                 Common Stock deliverable upon exercise
                                 (assuming the satisfaction of any conditions to
                                 exercisability including, without limitation,
                                 the passage of time, but without taking into
                                 account potential antidilution adjustments) of
                                 such options or rights to purchase or subscribe
                                 for Common Stock shall be deemed to have been
                                 issued at the time such options or rights were
                                 issued and for a consideration equal to the
                                 consideration, if any, received by the Company
                                 upon the issuance of such options or rights
                                 plus the exercise price provided in such
                                 options or rights (without taking into account
                                 potential antidilution adjustments) for the
                                 Common Stock covered thereby.

                          (B)    The aggregate maximum number of shares of
                                 Common Stock deliverable upon conversion of or
                                 in exchange


                                       6
<PAGE>

                                 (assuming the satisfaction of any conditions to
                                 convertibility or exchangeability, including,
                                 without limitation, the passage of time, but
                                 without taking into account potential
                                 antidilution adjustments) for any such
                                 convertible or exchangeable securities, or
                                 options or rights to purchase or subscribe
                                 therefore, shall be deemed to have been issued
                                 at the time such securities were issued or such
                                 options or rights were issued and for
                                 consideration equal to the consideration, if
                                 any, received by the Company for any such
                                 securities and related options or rights
                                 (excluding any cash received on account of
                                 accrued interest or accrued dividends), plus
                                 the additional consideration, if any, to be
                                 received by the Company (without taking into
                                 account potential antidilution adjustments)
                                 upon the conversion or exchange of such
                                 securities or the exercise of any related
                                 options or rights.

                          (C)    In the event of any change in the number of
                                 shares of Common Stock deliverable or in the
                                 consideration payable to the Company upon
                                 exercise of such options or rights or upon
                                 conversion of or in exchange for such
                                 convertible or exchangeable securities,
                                 including, but not limited to, a change
                                 resulting from the antidilution provisions
                                 thereof, the Exercise Price, to the extent
                                 previously adjusted upon the issuance of such
                                 options, rights or securities, shall be
                                 readjusted to reflect such change, but no
                                 further adjustment shall be made for the actual
                                 issuance of Common Stock or any payment of such
                                 consideration upon the exercise of any such
                                 options or rights or the conversion or exchange
                                 of such securities.

                          (D)    Upon the expiration of any such options or
                                 rights, the termination of any such rights to
                                 convert or exchange or the expiration of any
                                 options or rights related to such convertible
                                 or exchangeable securities, the Exercise Price,
                                 to the extent previously adjusted upon the
                                 issuance of such options, rights or securities
                                 or options or rights related to such
                                 securities, shall be readjusted to reflect the
                                 issuance of only the number of shares of Common
                                 Stock (and convertible or exchangeable
                                 securities which remain in effect) actually
                                 issued upon the exercise of such options or
                                 rights, upon the conversion or exchange of such
                                 securities or upon the exercise of the options
                                 or rights related to such securities.

                          (E)    The number of shares of Common Stock deemed
                                 issued


                                       7
<PAGE>

                                 and the consideration deemed paid therefore
                                 pursuant to Subsections 6.3(c)(iv)(A) and (B)
                                 shall be appropriately adjusted to reflect any
                                 change, termination or expiration of the type
                                 described in either Subsection 6.3(c)(iv)(C) or
                                 (D).

                          (F)    Notwithstanding the foregoing provisions of
                                 this Subsection 6.3(c)(iv), the adjustments
                                 required by this Subsection 6.3 with respect to
                                 the issuance of options under employee benefit
                                 plans of the Company shall be made, in the
                                 aggregate, only after the Warrantholder has
                                 notified the Company that it intends to
                                 exercise this Warrant, in whole or in part, at
                                 which time the required adjustments shall be
                                 made with respect to all such options that
                                 shall have been issued on or prior to the date
                                 of such notice and remain outstanding (it being
                                 understood that if any such options are
                                 actually exercised prior thereto, the
                                 appropriate adjustments, if any, shall be made
                                 pursuant to the applicable provision of this
                                 subsection 6.3(c) at the time of exercise).

                  (v)     "Additional Shares" shall mean any shares of Common
                          Stock issued (or deemed to have been issued as
                          contemplated by Subsection 6.3(c)(iv)) by the Company
                          on or after the date of this Warrant other than (i)
                          the Common Stock issued upon exercise of the Warrants,
                          (ii) the issuance and sale of, or the grant of options
                          to purchase up to 500,000 shares (subject to
                          adjustment in accordance with Section 6.3(a) or (b))
                          of Common Stock, after the date of this Warrant, to
                          employees, directors or officers of, or bona fide
                          consultants to, the Company pursuant to stock plans or
                          options or agreements adopted or approved by the
                          Company's Board of Directors, and (iii) Common Stock
                          issued pursuant to the exercise of any stock option,
                          warrant or other right to purchase Common Stock
                          outstanding on the date of this Warrant.

                  (vi)    "Warrants" shall mean the warrants to purchase shares
                          of Common Stock issued by the Company pursuant to the
                          Securities Purchase Agreement (as defined below).

SECTION 7.  MISCELLANEOUS.

     7.1. ENTIRE AGREEMENT. This Warrant was issued pursuant to the terms and
conditions of a certain Securities Purchase Agreement, of even date herewith, by
and between the Company and the Warrantholder (the "Securities Purchase
Agreement"). This Warrant, the Registration Rights Agreement and the Securities
Purchase Agreement constitute the entire agreement between the Company and the
Warrantholder with respect to this Warrant and the Warrant Shares.


                                       8
<PAGE>

     7.2. BINDING EFFECTS; BENEFITS. This Warrant shall inure to the benefit of
and shall be binding upon the Company, the Warrantholder, and each of their
respective heirs, legal representatives, successors and assigns. Nothing in this
Warrant, expressed or implied, is intended to or shall confer on any person
entity other than the Company, the Warrantholder, and each of their respective
heirs, legal representatives, successors or assigns, any rights, remedies,
obligations or liabilities under or by reason of this Warrant.

     7.3 TRANSFER RESTRICTIONS; ASSIGNMENT. Except as otherwise provided herein,
this Warrant may not be transferred, in whole or in part, without the prior
written consent of the Company, which may be given or withheld in the Company's
sole discretion.

     7.4. AMENDMENTS. This Warrant may not be modified or amended except by a
written instrument signed by the Company and the Warrantholder.

     7.3. SECTION AND OTHER HEADINGS. The section and other headings contained
in this Warrant are for reference purposes only and shall not be deemed to be a
part of this Warrant or to affect the meaning or interpretation of this Warrant.

     7.4. FURTHER ASSURANCES. Each of the Company and the Warrantholder shall do
and perform all such further acts and things and execute and deliver all such
other certificates, instruments and/or documents as any party hereto may
reasonably request in connection with the performance of the provisions of this
Warrant.

     7.5. NOTICES. All demands, requests, notices, and other communications
required or permitted to be given under this Warrant shall be in writing and
shall be deemed to have been duly given if delivered personally, sent by
confirmed facsimile or sent by United States certified or registered first class
mail, postage prepaid, to the parties hereto at the following addresses or at
such other address as any party hereto shall hereafter specify by notice to the
other party hereto:

          (a) if to the Company, addressed to:

              Rako Capital Corporation
              Two North College Avenue
              Fayetteville, AR 72701
              Attention:  Lisa Trammell
              Telephone No.:  (479) 684-2700
              Facsimile No.:  (479) 684-2799

          (b) If to the Warrantholder or any other holder, addressed to the
              address of such person appearing on the books of the Company.

Except as otherwise provided herein, all such demands, requests, notices and
other communications shall be deemed to have been received on the date of
personal delivery thereof, the sending of confirmed facsimile thereof or on the
third Business Day after the mailing thereof.


                                       9
<PAGE>

     7.6. SEPARABILITY. Any term or provision of this Warrant which is invalid
or unenforceable in any jurisdiction shall be ineffective in such jurisdiction
to the extent of such invalidity or unenforceability without rendering invalid
or unenforceable any other term or provision of this Warrant or affecting the
validity or enforceability of any of the terms or provisions of this Warrant in
any other jurisdiction.

     7.7. FRACTIONAL SHARES. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With
respect to any fraction of a share called for upon any exercise hereof, the
Company shall pay to the Warrantholder an amount in cash equal to such fraction
multiplied by the Fair Market Value of a share of Common Stock as of the date of
such exercise.

     7.8. GOVERNING LAW; CONSENT TO JURISDICTION. This Warrant shall be governed
by, and construed in accordance with, the laws of the State of New York (without
giving effect to any choice or conflict of law provisions). Each of the parties
hereby irrevocably and unconditionally submits to the jurisdiction of the courts
of the State of New York and of the federal courts sitting in the State of New
York in all actions or proceedings arising out of or relating to this Warrant.
Each of the parties agrees that all actions or proceedings arising out of or
relating to this Warrant must be litigated exclusively in any state or federal
court in the City of New York, and accordingly, each party irrevocably waives
any objection which it may now or hereafter have to the laying of the venue of
any such litigation in any such court. Each of the parties hereby irrevocably
and unconditionally waives its right to a jury trial in any action arising out
of or relating to this Warrant.

     7.9. EQUITABLE RELIEF. The Company recognizes that, in the event the
Company fails to perform, observe or discharge any of its obligations or
liabilities under this Warrant, any remedy of law may prove to be inadequate
relief to the Warrantholder or any other holder, and therefore, the Company
agrees that the Warrantholder or any other holder, if it so requests, shall be
entitled to temporary and permanent injunctive relief in any such case without
the necessity of proving actual damages, in addition to any other remedies that
may be available to it at law or in equity.

     7.10. EXPENSES AND ATTORNEYS' FEES. If, at any time or times, whether prior
or subsequent to the date hereof, the Warrantholder employs counsel for advice
or other representation or incurs reasonable legal and/or other costs and
expenses in connection with:

          (a)     the amendment, waiver or modification of any provision of this
                  Warrant;

          (b)     any litigation, contest, dispute, suite, proceeding or action
                  (whether instituted by the Warrantholder, the Company or any
                  other person) in any way relating to this Warrant, unless a
                  court of competent jurisdiction finds in favor of the Company
                  as the prevailing party, and awards court costs and attorneys'
                  fees to the Company as such prevailing party; or


                                       10
<PAGE>

          (c)     any attempt to enforce any rights of the Warrantholder against
                  the Company or any other person that may be obligated to the
                  Warrantholder by virtue of this Warrant in accordance with the
                  terms of this Warrant;

then, in any such event, the reasonable attorneys' fees arising from such
services and all reasonable expenses, costs, charges, and fees of counsel or of
the Warrantholder in any way or respect arising in connection with or relating
to any of the events or actions described in this subsection shall be payable on
demand by the Company, to the Warrantholder.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


                                       11
<PAGE>

     IN WITNESS WHEREOF, the Company and the Warrantholder have caused this
Warrant to be signed by their duly authorized officers as of the 8th day of
April, 2003.


                                       RAKO CAPITAL CORPORATION


                                       By: /s/ Gary Fuchs
                                          -------------------------------------
                                          Gary Fuchs, Chief Executive Officer


                                       WARRANTHOLDER
                                       Stanford Venture Capital Holdings, Inc.

                                       By: /s/ James M. Davis
                                          -------------------------------------
                                          James M. Davis, President



                                       12
<PAGE>

                            RAKO CAPITAL CORPORATION

                              WARRANT EXERCISE FORM

                     (To be executed upon exercise Warrant)

     The undersigned, the record holder of this Warrant, hereby irrevocably
elects to exercise the right, represented by this Warrant, to purchase _________
of the Warrant Shares and herewith pays the Exercise Price in accordance with
the terms of this Warrant by (check applicable boxes):

     [ ] tendering payment for such Warrant Shares to the order of RAKO CAPITAL
CORPORATION in the amount of $______________.

     [ ] surrendering the undersigned's purchase rights with respect to ______
Warrant Shares, having an aggregate Fair Market Value as of the date of this
exercise of $________________, which equals or exceeds the aggregate Exercise
Price of the Warrant Shares being purchased, as permitted by subsection 2.6 of
the Warrant. (The Company shall refund to the Warrantholder in cash any such
excess value, not to exceed 99.9% of the Fair Market Value of one share of
Common Stock).

     The undersigned requests that a certificate for the Warrant Shares being
purchased be registered in the name of ________________ and that such
certificate be delivered to _____________.

     Date                            Signature
         -------------------------            ---------------------------------

<PAGE>

                               FORM OF ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers all
of the rights of the undersigned under the within Warrant, with respect to the
number of shares of Common Stock covered thereby set forth below, to:

         Name of Assignee           Address          No. of Shares
         ---------------------------------------------------------








and hereby irrevocable constitutes and appoints ________________ as agent and
attorney-in-fact to transfer said Warrant on the books of Rako Capital
Corporation, with full power of substitution in the premises.


Dated
      --------------------------------

In the presence of

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

                                       Name:
                                            ------------------------------------

                                       Signature:
                                                 -------------------------------
                                       Title of Signing Offer or Agent (if any):


                                       Address:
                                               --------------------------------


                                       Note:  The above signature should
                                       correspond with the name on the face of
                                       the within Warrant.