<PAGE>

                                   EXHIBIT 4.2
         UNDERWRITER'S WARRANT AGREEMENT (the "Underwriter's Warrant Agreement"
or "Agreement"), dated as of __________, 2000, between Precis Smart Card
Systems, Inc. (the "Company") and Barron Chase Securities, Inc. (the "Managing
Underwriter").

                              W I T N E S S E T H:

         WHEREAS, the Managing Underwriter has agreed, pursuant to the
underwriting agreement (the "Underwriting Agreement") dated as of the date
hereof between the Company and the Managing Underwriter, to act as the Managing
Underwriter in connection with the Company's proposed public offering of
1,000,000 shares of the Company's Common Stock at $6.00 per share (the "Public
Offering"); and

         WHEREAS, the Company proposes to issue to the Managing Underwriter
and/or persons related to the Managing Underwriter as those persons are defined
in Rule 2710 of the NASD Conduct Rules (the "Holder"), 100,000 warrants ("Common
Stock Underwriter Warrants") to purchase 100,000 shares of the Company's Common
Stock (the "Shares"). The "Common Stock Underwriter Warrants" are also referred
to as the "Warrants". The "Shares" are also referred to as the "Warrant
Securities"; and

         WHEREAS, the Warrants to be issued pursuant to this Agreement will be
issued on the Closing Date (as such term is defined in the Underwriting
Agreement) by the Company to the Holders in consideration for, and as part of
the compensation in connection with, the Managing Underwriter acting as Managing
Underwriter pursuant to the Underwriting Agreement.

         NOW, THEREFORE, in consideration of the premises, the payment to the
Company of TEN DOLLARS AND NO CENTS ($10.00), the agreements herein set forth
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

         1.       GRANT AND PERIOD.

         The above recitals are true and correct. The Public Offering has been
registered under a Registration Statement on Form SB-2 (File No. 333-86643) and
declared effective by the Securities and Exchange Commission (the "SEC" or
"Commission") on __________, 2000 (the "Effective Date"). This Agreement,
relating to the purchase of the Warrants, is entered into pursuant to the
Underwriting Agreement between the Company and the Managing Underwriter in
connection with the Public Offering.

         Pursuant to the Warrants, the Holders are hereby granted the right to
purchase from the Company, at any time during the period commencing on the
Effective Date and expiring five (5) years thereafter (the "Expiration Time"),
up to 100,000 Shares at an initial exercise price (subject to adjustment as
provided in Article 8 hereof) of $9.00 per share (150% of the public offering
price) (the "Exercise Price" or "Purchase Price"), subject to the terms and
conditions of this Agreement.

         Except as specifically otherwise provided herein, the Shares
constituting the Warrant Securities shall bear the same terms and conditions as
such securities described under the caption "Description of Securities" in the
Registration Statement, and as designated in the Company's Articles of
Incorporation and any amendments thereto, and the Holders shall have
registration rights under the Securities Act of 1933, as amended (the "Act"),
for the Warrants and the Shares, as more fully described in paragraph seven (7)
of this Underwriter's Warrant Agreement.

         2.       WARRANT CERTIFICATES.

         The warrant certificates (the "Warrant Certificate") delivered and to
be delivered pursuant to this Agreement shall be in the form set forth in the
form of Warrant Certificate, attached hereto and made a part hereof, with such
appropriate insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.


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         3.       EXERCISE OF WARRANT.

         3.1      FULL EXERCISE.

                  (i) The Holder may effect a cash exercise of the Common Stock
         Underwriter Warrants by surrendering to the Company the Warrant
         Certificate, together with a Subscription in the form of Exhibit "A"
         attached thereto, duly executed by such Holder, at any time prior to
         the Expiration Time, at the Company's principal office, accompanied by
         payment in cash or by certified or official bank check payable to the
         order of the Company in the amount of the aggregate purchase price (the
         "Aggregate Price"), subject to any adjustments provided for in this
         Agreement. The aggregate price hereunder for each Holder shall be equal
         to the exercise price as set forth in Section six (6) hereof multiplied
         by the number of Shares that are the subject of each Holder's Warrant
         (as adjusted as hereinafter provided).

                  (ii) The Holder hereof may effect a cashless exercise of the
         Common Stock Underwriter Warrants by delivering the Warrant Certificate
         to the Company together with a Subscription in the form of Exhibit "B"
         attached thereto, duly executed by such Holder, in which case no
         payment of cash will be required. Upon such cashless exercise, the
         number of Shares to be purchased by each Holder hereof shall be
         determined by dividing: (i) the number obtained by multiplying the
         number of Shares that are the subject of each Holder's Warrant
         Certificate by the amount, if any, by which the then Market Value (as
         hereinafter defined) exceeds the Purchase Price; by (ii) the then per
         share Market Value or Purchase Price, whichever is greater. In no event
         shall the Company be obligated to issue any fractional securities and,
         at the time it causes a certificate or certificates to be issued, it
         shall pay the Holder in lieu of any fractional securities or shares to
         which such Holder would otherwise be entitled, by the Company check, in
         an amount equal to such fraction multiplied by the Market Value. The
         Market Value shall be determined on a per Share basis as of the close
         of the business day preceding the exercise, which determination shall
         be made as follows: (a) if the Common Stock is listed for trading on a
         national or regional stock exchange or is included on the NASDAQ
         National Market or Small-Cap Market, the average closing sale price
         quoted on such exchange or the NASDAQ National Market or Small-Cap
         Market which is published in THE WALL STREET JOURNAL for the ten (10)
         trading days immediately preceding the date of exercise, or if no trade
         of the Common Stock shall have been reported during such period, the
         last sale price so quoted for the next day prior thereto on which a
         trade in the Common Stock was so reported; or (b) if the Common Stock
         is not so listed, admitted to trading or included, the average of the
         closing highest reported bid and lowest reported ask price as quoted on
         the National Association of Securities Dealer's OTC Bulletin Board or
         in the "pink sheets" published by the National Daily Quotation Bureau
         for the first day immediately preceding the date of exercise on which
         the Common Stock is traded.

         3.2 PARTIAL EXERCISE. The securities referred to in paragraph 3.1 above
also may be exercised from time to time in part by surrendering the Warrant
Certificate in the manner specified in Section 3.1 hereof, except that with
respect to a cash exercise, the Purchase Price payable shall be equal to the
number of securities being purchased hereunder multiplied by the per security
Purchase Price, subject to any adjustments provided for in this Agreement. Upon
any such partial exercise, the Company, at its expense, will forthwith issue to
the Holder hereof a new Warrant Certificate or Warrants of like tenor calling in
the aggregate for the number of securities (as constituted as of the date
hereof) for which the Warrant Certificate shall not have been exercised, issued
in the name of the Holder hereof or as such Holder (upon payment by such Holder
of any applicable transfer taxes) may direct.

         4.       ISSUANCE OF CERTIFICATES.

         Upon the exercise of the Warrants, the issuance of certificates for the
shares of Common Stock and/or other securities shall be made forthwith (and in
any event within three (3) business days thereafter) without charge to the
Holder thereof including, without limitation, any tax which may be payable in
respect of the issuance thereof, and such certificates shall (subject to the
provisions of Sections 5 and 7 hereof) be issued in the name of, or in such
names as

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<PAGE>


may be directed by, the Holder thereof; provided, however, that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any such certificates in a
name other than that of the Holder and the Company shall not be required to
issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have established to the satisfaction of the Company that such
tax has been paid.

         The Warrant Certificates and the certificates representing the shares
of Common Stock and/or other securities shall be executed on behalf of the
Company by the manual or facsimile signature of the then present Chairman or
Vice Chairman of the Board of Directors or President or Vice President of the
Company, attested to by the manual or facsimile signature of the then present
Secretary or Assistant Secretary of the Company. Warrant Certificates shall be
dated the date of execution by the Company upon initial issuance, division,
exchange, substitution or transfer.

         5.       RESTRICTION ON TRANSFER OF WARRANTS.

         The Holder of a Warrant Certificate, by acceptance thereof, covenants
and agrees that the Warrants may not be sold, transferred, assigned,
hypothecated or otherwise disposed of, in whole or in part, for a period of one
(1) year from the Effective Date of the Public Offering, except (a) to officers
of the Managing Underwriter or to officers and partners of the other
Underwriters or Selected Dealers participating in the Public Offering; (b) by
will; or (c) by operation of law.

         6.       EXERCISE PRICE.

         6.1      INITIAL AND ADJUSTED EXERCISE PRICES.

         The initial exercise price of each Common Stock Underwriter Warrant
shall be $9.00 per share (150% of the public offering price). The adjusted
exercise price shall be the price which shall result from time to time from any
and all adjustments of the initial exercise price in accordance with the
provisions of Section 8 hereof.

         6.2      EXERCISE PRICE.

         The term "Exercise Price" herein shall mean the initial exercise price
or the adjusted exercise price, depending upon the context.

         7.       REGISTRATION RIGHTS.

         7.1      REGISTRATION UNDER THE SECURITIES ACT OF 1933.

         The Warrants and the Warrant Securities (collectively the "Registrable
Securities") have been registered under the Securities Act of 1933, as amended
(the "Act"). Upon exercise, in part or in whole, of the Warrants, certificates
representing the Shares shall bear the following legend in the event there is no
current registration statement effective with the Commission at such time as to
such securities:

         The securities represented by this certificate may not be offered or
         sold except pursuant to (i) an effective registration statement under
         the Act, (ii) to the extent applicable, Rule 144 under the Act (or any
         similar rule under such Act relating to the disposition of securities),
         or (iii) an opinion of counsel, if such opinion shall be reasonably
         satisfactory to counsel to the issuer, that an exemption from
         registration under such Act and applicable state securities laws is
         available.

         7.2      PIGGYBACK REGISTRATION.

         If, at any time commencing after the Effective Date of the offering and
expiring seven (7) years thereafter, the Company prepares and files a
post-effective amendment to the Registration Statement, or a new Registration

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<PAGE>


Statement under the Act, or files a Notification on Form 1-A or otherwise
registers securities under the Act, or files a similar disclosure document with
the Commission (collectively the "Registration Documents") as to any of its
securities under the Act (other than under a Registration Statement pursuant to
Form S-8), it will give written notice by registered mail, at least thirty (30)
days prior to the filing of each such Registration Document, to the Managing
Underwriter and to all other Holders of the Registrable Securities of its
intention to do so. If the Managing Underwriter and/or other Holders of the
Registrable Securities notify the Company within twenty (20) days after receipt
of any such notice of its or their desire to include any such Registrable
Securities in such proposed Registration Documents, the Company shall afford the
Managing Underwriter and such Holders of such Registrable Securities the
opportunity to have any Registrable Securities registered under such
Registration Documents or any other available Registration Document.

         Notwithstanding the provisions of this Section 7.2, the Company shall
have the right at any time after it shall have given written notice pursuant to
this Section 7.2 (irrespective of whether a written request for inclusion of any
such securities shall have been made) to elect not to file any such proposed
registration statement, or to withdraw the same after the filing but prior to
the effective date thereof.

         7.3      DEMAND REGISTRATION.

         (a) At any time commencing one (1) year after the Effective Date of the
Public Offering, and expiring four (4) years thereafter, the Holders of
Registrable Securities representing more than 50% of such securities at that
time outstanding shall have the right (which right is in addition to the
registration rights under Section 7.2 hereof), exercisable by written notice to
the Company, to have the Company prepare and file with the Commission, on one
occasion, a registration statement and/or such other documents, including a
prospectus, and/or any other appropriate disclosure document as may be
reasonably necessary in the opinion of both counsel for the Company and counsel
for the Managing Underwriter and Holders, in order to comply with the provisions
of the Act, so as to permit a public offering and sale of their respective
Registrable Securities for nine (9) consecutive months (or such longer period of
time as permitted by the Act) by such Holders and any other Holders of any of
the Registrable Securities who notify the Company within twenty (20) days after
receipt of notice by registered or certified mail from the Company of such
request. A Demand Registration shall not be counted as a Demand Registration
hereunder until such Demand Registration has been declared effective by the SEC
and maintained continuously effective for a period of at least nine months or
such shorter period when all Registrable Securities included therein have been
sold in accordance with such Demand Registration, provided that a Demand
Registration shall be counted as a Demand Registration hereunder if the Company
ceases its efforts in respect of such Demand Registration at the request of the
majority Holders making the demand for a reason other than a material and
adverse change in the business, assets, prospects or condition (financial or
otherwise) of the Company and its subsidiaries taken as a whole.

         (b) The Company covenants and agrees to give written notice by
registered or certified mail of any registration request under this Section 7.3
by the majority of the Holders to all other registered Holders of any of the
Registrable Securities within ten (10) days from the date of the receipt of any
such registration request.

         (c) In addition to the registration rights under Section 7.2 and
subsection (a) of this Section 7.3, at any time commencing one (1) year after
the Effective Date of the offering, and expiring four (4) years thereafter, the
Holders of a majority of the Registrable Securities shall have the right,
exercisable by written request to the Company, to have the Company prepare and
file, on one occasion, with the Commission a registration statement or any other
appropriate disclosure document so as to permit a public offering and sale for
nine (9) consecutive months (or such longer period of time as permitted by the
Act) by any such Holder of Registrable Securities; provided, however, that the
provisions of Section 7.4(b) hereof shall not apply to any such registration
request and registration and all costs incident thereto shall be at the expense
of the Holder or Holders participating in the offering pro-rata.

         (d) Any written request by the Holders made pursuant to this Section
7.3 shall:

                  (i) specify the number of Registrable Securities which the
         Holders intend to offer and sell and the minimum price at which the
         Holders intend to offer and sell such securities;

                  (ii) state the intention of the Holders to offer such
         securities for sale;


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<PAGE>


                  (iii) describe the intended method of distribution of such
         securities; and

                  (iv) contain an undertaking on the part of the Holders to
         provide all such information and materials concerning the Holders and
         take all such action as may be reasonably required to permit the
         Company to comply with all applicable requirements of the Commission
         and to obtain acceleration of the effective date of the registration
         statement.

         (e) In the event the Company receives from the Holders of any
Registrable Securities representing more than 50% of such securities at that
time outstanding, a request that the Company effect a registration on Form S-3
with respect to the Registrable Securities and if Form S-3 is available for such
offering, the Company shall, as soon as practicable, effect such registration as
would permit or facilitate the sale and distribution of the Registrable
Securities as are specified in the request. All expenses incurred in connection
with a registration requested pursuant to this Section shall be borne by the
Company. Registrations effected pursuant to this Section 7.3(e) shall not be
counted as registrations pursuant to Section 7.3(a) and 7.3(c) hereof.

         7.4      COVENANTS OF THE COMPANY WITH RESPECT TO REGISTRATION.

         In connection with the filing of any Registration Document by the
Company, the Company covenants and agrees as follows:

         (a) The Company shall use its best efforts to file a registration
statement within forty-five (45) days of receipt of any demand pursuant to
Section 7.3, and shall use its best efforts to have any such registration
statement declared effective at the earliest practicable time. The Company will
promptly notify each seller of such Registrable Securities and confirm such
advice in writing, (i) when such registration statement becomes effective, (ii)
when any post-effective amendment to such registration statement becomes
effective and (iii) of any request by the SEC for any amendment or supplement to
such registration statement or any prospectus relating thereto or for additional
information.

         The Company shall furnish to each seller of such Registrable Securities
such number of copies of such registration statement and of each such amendment
and supplement thereto (in each case including each preliminary prospectus and
summary prospectus) in conformity with the requirements of the Act, and such
other documents as such seller may reasonably request in order to facilitate the
disposition of the Registrable Securities by such seller.

         (b) The Company shall pay all costs (excluding transfer taxes, if any,
and fees and expenses of Holder(s)' counsel and the Holder's pro-rata portion of
the selling discount or commissions), fees and expenses in connection with all
registration statements filed pursuant to Sections 7.2 and 7.3(a) hereof
including, without limitation, the Company's legal and accounting fees, printing
expenses, blue sky fees and expenses. The Holder(s) will pay all costs, fees and
expenses in connection with any registration statement filed pursuant to Section
7.3(c). If the Company shall fail to comply with the provisions of Section
7.3(a), the Company shall, in addition to any other equitable or other relief
available to the Holder(s), be liable for any or all special and consequential
damages sustained by the Holder(s) requesting registration of their Registrable
Securities.

         (c) The Company shall prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be reasonably necessary to keep such registration statement
effective for at least nine months (or such longer period as permitted by the
Act), and to 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 seller or
sellers of Registrable Securities set forth in such registration statement. If
at any time the SEC should institute or threaten to institute any proceedings
for the purpose of issuing a stop order suspending the effectiveness of any such
registration statement, the Company will promptly notify each seller of such
Registrable Securities and will use all reasonable efforts to prevent the
issuance of any such stop order or to obtain the withdrawal thereof as soon as
possible. The Company will use its good faith reasonable efforts and take all
reasonably necessary action which may be required in qualifying or registering
the Registrable Securities included in a registration statement for offering and
sale under the securities or blue sky laws of such states as reasonably are
required by the Holder(s), provided that the Company shall not be obligated to
execute or file any general consent to service of process or to qualify as a
foreign corporation to do business


                                        5

<PAGE>


under the laws of any such jurisdiction. The Company shall use its good faith
reasonable efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities of the United States or any State thereof
as may be reasonably necessary to enable the seller or sellers thereof to
consummate the disposition of such Registrable Securities.


         (d) The Company shall indemnify the Holder(s) of the Registrable
Securities to be sold pursuant to any registration statement and each person, if
any, who controls such Holders within the meaning of Section 15 of the Act or
Section 20(a) of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), against all loss, claim, damage, expense or liability (including all
expenses reasonably incurred in investigating, preparing or defending against
any claim whatsoever) to which any of them may become subject under the Act, the
Exchange Act or otherwise, arising from such registration statement but only to
the same extent and with the same effect as the provisions pursuant to which the
Company has agreed to indemnify the Managing Underwriter as contained in the
Underwriting Agreement.

         (e) If requested by the Company prior to the filing of any registration
statement covering the Registrable Securities, each of the Holder(s) of the
Registrable Securities to be sold pursuant to a registration statement, and
their successors and assigns, shall severally, and not jointly, indemnify the
Company, its officers and directors and each person, if any, who controls the
Company within the meaning of Section 15 of the Act or Section 20(a) of the
Exchange Act, against all loss, claim, damage or expense or liability (including
all expenses reasonably incurred in investigating, preparing or defending
against any claim whatsoever) to which they may become subject under the Act,
the Exchange Act or otherwise, arising from written information furnished by
such Holder, or their successors or assigns, for specific inclusion in such
registration statement to the same extent and with the same effect as the
provisions contained in the Underwriting Agreement pursuant to which the
Managing Underwriter has agreed to indemnify the Company, except that the
maximum amount which may be recovered from each Holder pursuant to this
paragraph or otherwise shall be limited to the amount of net proceeds received
by the Holder from the sale of the Registrable Securities.

         (f) Nothing contained in this Agreement shall be construed as requiring
the Holder(s) to exercise their Warrants prior to the filing of any registration
statement or the effectiveness thereof.

         (g) The Company shall not permit the inclusion of any securities other
than the Registrable Securities to be included in any registration statement
filed pursuant to Section 7.3 hereof without the prior written consent of the
Holders of the Registrable Securities representing a majority of such
securities.

         (h) The Company shall furnish to each Holder participating in the
offering and to each underwriter, if any, a signed counterpart, addressed to
such Holder or underwriter, of (i) an opinion of counsel to the Company, dated
the effective date of such registration statement (and, if such registration
includes an underwritten public offering, an opinion dated the date of the
closing under the underwriting agreement), and (ii) a "cold comfort" letter
dated the effective date of such registration statement (and, if such
registration includes an underwritten public offering, a letter dated the date
of the closing under the underwriting agreement) signed by the independent
public accountants who have issued a report on the Company's financial
statements included in such registration statement, in each case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) and, in the case of such accountants' letter,
with respect to events subsequent to the date of such financial statements, as
are customarily covered in opinions of issuer's counsel and in accountants'
letters delivered to underwriters in underwritten public offerings of
securities.

         (i) The Company shall deliver promptly to each Holder participating in
the offering and to the managing underwriter copies of all correspondence
between the Commission and the Company, its counsel or auditors and all
non-privileged memoranda relating to discussions with the Commission or its
staff with respect to the registration statement and permit each Holder and
underwriter to do such investigation, upon reasonable advance notice, with
respect to information contained in or omitted from the registration statement
as it deems reasonably necessary to comply with applicable securities laws or
rules of the National Association of Securities Dealers, Inc. ("NASD"). Such
investigation shall include access to books, records and properties and
opportunities to discuss the business of the Company with its officers and
independent auditors, all to such reasonable extent and at such reasonable times
and as often as any such Holder shall reasonably request.


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<PAGE>


         (j) With respect to a registration statement filed pursuant to Section
7.3, the Company, if requested, shall enter into an underwriting agreement with
the managing underwriter, reasonably satisfactory to the Company, selected for
such underwriting by Holders holding a majority of the Registrable Securities
requested to be included in such underwriting. Such agreement shall be
satisfactory in form and substance to the Company, each Holder and such managing
underwriters, and shall contain such representations, warranties and covenants
by the Company and such other terms as are customarily contained in agreements
of that type used by the managing underwriter. The Holders, if required by the
underwriter to be parties to any underwriting agreement relating to an
underwritten sale of their Registrable Securities, may, at their option, require
that any or all the representations, warranties and covenants of the Company to
or for the benefit of such underwriters shall also be made to and for the
benefit of such Holders. Such Holders shall not be required to make any
representations or warranties to or agreements with the Company or the
underwriters except as they may relate to such Holders and their intended
methods of distribution.

         (k) Notwithstanding the provisions of paragraph 7.2 or paragraph 7.3 of
this Agreement, the Company shall not be required to effect or cause the
registration of Registrable Securities pursuant to paragraph 7.2 or paragraph
7.3 hereof if, within thirty (30) days after its receipt of a request to
register such Registrable Securities (i) counsel for the Company delivers an
opinion to the Holders requesting registration of such Registrable Securities,
in form and substance satisfactory to counsel to such Holder(s), to the effect
that the entire number of Registrable Securities proposed to be sold by such
Holder(s) may otherwise be sold, in the manner proposed by such Holder(s),
without registration under the Securities Act, or (ii) the SEC shall have issued
a no-action position, in form and substance satisfactory to counsel for the
Holder(s) requesting registration of such Registrable Securities, to the effect
that the entire number of Registrable Securities proposed to be sold by such
Holder(s) may be sold by it, in the manner proposed by such Holder(s), without
registration under the Securities Act.

         (l) After completion of the Public Offering, the Company shall not,
directly or indirectly, enter into any merger, business combination or
consolidation in which (a) the Company shall not be the surviving corporation
and (b) the stockholders of the Company are to receive, in whole or in part,
capital stock or other securities of the surviving corporation, unless the
surviving corporation shall, prior to such merger, business combination or
consolidation, agree in writing to assume the obligations of the Company under
this Agreement, and for that purpose references hereunder to "Registrable
Securities" shall be deemed to include the securities which the Holders would be
entitled to receive in exchange for Registrable Securities under any such
merger, business combination or consolidation, provided that to the extent such
securities to be received are convertible into shares of Common Stock of the
issuer thereof, then any such shares of Common Stock as are issued or issuable
upon conversion of said convertible securities shall also be included within the
definition of "Registrable Securities".

         8.       ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SECURITIES.

         8.1      ADJUSTMENT FOR DIVIDENDS, SUBDIVISIONS, COMBINATIONS OR
                  RECLASSIFICATIONS.

         In case the Company shall (a) pay a dividend or make a distribution in
shares of its capital stock (whether shares of Common Stock or of capital stock
of any other class), (b) subdivide its outstanding shares of Common Stock into a
greater number of shares, (c) combine its outstanding shares of Common Stock
into a smaller number of shares, or (d) issue by reclassification of its shares
of Common Stock any shares of capital stock of the Company; then, and in each
such case, the per share Exercise Price and the number of Warrant Securities in
effect immediately prior to such action shall be adjusted so that the Holder of
this Warrant thereafter upon the exercise hereof shall be entitled to receive
the number and kind of shares of the Company which such Holder would have owned
immediately following such action had this Warrant been exercised immediately
prior thereto. An adjustment made pursuant to this Section shall become
effective immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or reclassification. If, as a result of
an adjustment made pursuant to this Section, the Holder of this Warrant shall
become entitled to receive shares of two or more classes of capital stock of the
Company, the Board of Directors of the Company (whose determination shall be
conclusive) shall determine the allocation of the adjusted Exercise Price
between or among shares of such class of capital stock.

         Immediately upon any adjustment of the Exercise Price pursuant to this
Section, the Company shall send written notice thereof to the Holder of Warrant
Certificates (by first class mail, postage prepaid), which notice shall


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<PAGE>


state the Exercise Price resulting from such adjustment, and any increase or
decrease in the number of Warrant Securities to be acquired upon exercise of the
Warrants, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.

         8.2      ADJUSTMENT FOR REORGANIZATION, MERGER OR CONSOLIDATION.

         In case of any reorganization of the Company or consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Warrant Agreement providing that the Holder of each
Warrant then outstanding or to be outstanding shall have the right thereafter
(until the expiration of such Warrant) to receive, upon exercise of such
warrant, the kind and amount of shares of stock and other securities and
property receivable upon such consolidation or merger, by a holder of the number
of shares of Common Stock of the Company for which such warrant might have been
exercised immediately prior to such reorganization, consolidation, merger,
conveyance, sale or transfer. Such supplemental Warrant Agreement shall provide
for adjustments which shall be identical to the adjustments provided in Section
8 and such registration rights and other rights as provided in this Agreement.
The Company shall not effect any such consolidation, merger, or similar
transaction as contemplated by this paragraph, unless prior to or simultaneously
with the consummation thereof, the successor corporation (if other than the
Company) resulting from such consolidation or merger or the corporation
purchasing, receiving, or leasing such assets or other appropriate corporation
or entity shall assume, by written instrument executed and delivered to the
Holders, the obligation to deliver to the Holders, such shares of stock,
securities, or assets as, in accordance with the foregoing provisions, such
holders may be entitled to purchase, and to perform the other obligations of the
Company under this Agreement. The above provision of this Subsection shall
similarly apply to successive consolidations or successively whenever any event
listed above shall occur.


         8.3      DIVIDENDS AND OTHER DISTRIBUTIONS.

         In the event that the Company shall at any time prior to the exercise
of all of the Warrants distribute to its stockholders any assets, property,
rights, evidences of indebtedness, securities (other than a distribution made as
a cash dividend payable out of earnings or out of any earned surplus legally
available for dividends under the laws of the jurisdictions of incorporation of
the Company), whether issued by the Company or by another, the Holders of the
unexercised Warrants shall thereafter be entitled, in addition to the shares of
Common Stock or other securities and property receivable upon the exercise
thereof, to receive, upon the exercise of such Warrants, the same property,
assets, rights, evidences of indebtedness, securities or any other thing of
value that they would have been entitled to receive at the time of such
distribution as if the Warrants had been exercised immediately prior to such
distribution. At the time of any such distribution, the Company shall make
appropriate reserves to ensure the timely performance of the provisions of this
subsection or an adjustment to the Exercise Price, which shall be effective as
of the day following the record date for such distribution.

         8.4      ADJUSTMENT IN NUMBER OF SECURITIES.

         Upon each adjustment of the Exercise Price pursuant to the provisions
of this Section 8, the number of securities issuable upon the exercise of each
Warrant shall be adjusted to the nearest full amount by multiplying a number
equal to the Exercise Price in effect immediately prior to such adjustment by
the number of securities issuable upon exercise of the Warrants immediately
prior to such adjustment and dividing the product so obtained by the adjusted
Exercise Price.

         8.5      NO ADJUSTMENT OF EXERCISE PRICE IN CERTAIN CASES.

         No adjustment of the Exercise Price shall be made if the amount of said
adjustment shall be less than 5 cents ($.05) per Share, provided, however, that
in such case any adjustment that would otherwise be required then to be made
shall be carried forward and shall be made at the time of and together with the
next subsequent adjustment which, together with any adjustment so carried
forward, shall amount to at least 5 cents ($.05) per Share.


                                        8

<PAGE>

         8.6      ACCOUNTANT'S CERTIFICATE OF ADJUSTMENT.

         In each case of an adjustment or readjustment of the Exercise Price or
the number of any securities issuable upon exercise of the Warrants, the
Company, at its expense, shall cause independent certified public accountants of
recognized standing selected by the Company (who may be the independent
certified public accountants then auditing the books of the Company) to compute
such adjustment or readjustment in accordance herewith and prepare a certificate
showing such adjustment or readjustment, and shall mail such certificate, by
first class mail, postage prepaid, to any Holder of the Warrants at the Holders'
address as shown on the Company's books. The certificate shall set forth such
adjustment or readjustment, showing in detail the facts upon which such
adjustment or readjustment is based including, but not limited to, a statement
of (i) the Exercise Price at the time in effect, and (ii) the number of
additional or fewer securities and the type and amount, if any, of other
property which at the time would be receivable upon exercise of the Warrants.

         9.       EXCHANGE AND REPLACEMENT OF WARRANT CERTIFICATES.

         Each Warrant Certificate is exchangeable without expense, upon the
surrender thereof by the registered Holder at the principal executive office of
the Company, for a new Warrant Certificate of like tenor and date representing
in the aggregate the right to purchase the same number of securities in such
denominations as shall be designated by the Holder thereof at the time of such
surrender.

         Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of any Warrant Certificate, and,
in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it, and reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of the Warrants, if
mutilated, the Company will make and deliver a new Warrant Certificate of like
tenor, in lieu thereof.

         10.      ELIMINATION OF FRACTIONAL INTEREST.

         The Company shall not be required to issue certificates representing
fractions of shares of Common Stock upon the exercise of the Warrants, nor shall
it be required to issue script or pay cash in lieu of fractional interests, it
being the intent of the parties that all fractional interests may be eliminated,
at the Company's option, by rounding any fraction up to the nearest whole number
of shares of Common Stock or other securities, properties or rights, or in lieu
thereof paying cash equal to such fractional interest multiplied by the current
value of a share of Common Stock.

         11.      RESERVATION, VALIDITY AND LISTING.

         The Company covenants and agrees that during the exercise period, the
Company shall at all times reserve and keep available out of its authorized
shares of Common Stock, solely for the purpose of issuance upon the exercise of
the Warrants, such number of shares of Common Stock or other securities,
properties or rights as shall be issuable upon the exercise under this Warrant
Certificate. The Company covenants and agrees that, upon exercise of the
Warrants, and payment of the Exercise Price therefor, all shares of Common Stock
and other securities issuable upon such exercise shall be duly authorized,
validly issued, fully paid, non-assessable and not subject to the preemptive
rights of any stockholder. As long as the Warrants shall be outstanding, the
Company shall use its best efforts to cause all shares of Common Stock issuable
upon the exercise of the Warrants to be listed and quoted (subject to official
notice of issuance) on all securities exchanges and systems on which the Common
Stock are then listed and/or quoted, including Nasdaq.

         12.      NOTICES TO WARRANT HOLDERS.

         Nothing contained in this Agreement shall be construed as conferring
upon the Holders of the Warrants the right to vote or to consent or to receive
notice as a stockholder in respect of any meetings of stockholders for the


                                        9

<PAGE>


election of directors or any other matter, or as having any rights whatsoever as
a stockholder of the Company. If, however, at any time prior to the expiration
of the Warrants and their exercise, any of the following events shall occur:

                  (a) the Company shall take a record of the holders of its
         shares of Common Stock for the purpose of entitling them to receive a
         dividend or distribution payable otherwise than in cash, or a cash
         dividend or distribution payable otherwise than out of current or
         retained earnings, as indicated by the accounting treatment of such
         dividend or distribution on the books of the Company; or

                  (b) the Company shall offer to all the holders of its Common
         Stock any additional shares of capital stock of the Company or
         securities convertible into or exchangeable for shares of capital stock
         of the Company, or any option, right or warrant to subscribe therefor;
         or

                  (c) a dissolution, liquidation or winding up of the Company
         (other than in connection with a consolidation or merger) or a sale of
         all or substantially all of its property, assets and business as an
         entirety shall be proposed;

then, in any one or more of said events, the Company shall give written notice
of such event at least fifteen (15) days prior to the date fixed as a record
date of the date of closing the transfer books for the determination of the
stockholders entitled to such dividend, distribution, convertible or
exchangeable securities or subscription rights, or entitled to vote on such
proposed dissolution, liquidation, winding up or sale. Such notices shall
specify such record date or the date of closing the transfer books, as the case
may be. Failure to give such notice or any defect therein shall not affect the
validity of any action taken in connection with the declaration or payment of
any such dividend, or the issuance of any convertible or exchangeable
securities, or subscription rights, options or warrants, or any proposed
dissolution, liquidation, winding up or sale.

         13.      NOTICES.

         All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly given when sent (i) by
facsimile AND (ii) delivered personally or by overnight courier or mailed by
registered or certified mail, return receipt requested:

                  (a) If to the registered Holder of any of the Registrable
         Securities, to the address of such Holder as shown on the books of the
         Company; or

                  (b) If to the Company, to the address set forth below or to
         such other address as the Company may designate by notice to the
         Holders.

                                            Larry E. Howell
                                            Chief Executive Officer
                                            Precis Smart Card Systems, Inc.
                                            11032 Quail Creek Road, Suite 108
                                            Oklahoma City, OK 73120

With copies to:                             Michael E. Dunn, Esq.
                                            Dunn Swan & Cunningham
                                            2800 Oklahoma Tower
                                            210 Park Avenue
                                            Oklahoma City, OK 73102-5604

                                            and

                                            David A. Carter, P.A.


                                       10

<PAGE>


                                            2300 Glades Road, Suite 210W
                                            Boca Raton, Florida 33431


         15.      ENTIRE AGREEMENT: MODIFICATION.

         This Agreement (and the Underwriting Agreement to the extent
applicable) contain the entire understanding between the parties hereto with
respect to the subject matter hereof, and the terms and provisions of this
Agreement may not be modified, waived or amended except in a writing executed by
the Company and the Holders of at least a majority of Registrable Securities
(based on underlying numbers of shares of Common Stock). Notice of any
modification, waiver or amendment shall be promptly provided to any Holder not
consenting to such modification, waiver or amendment.


         16.      SUCCESSORS.

         All the covenants and provisions of this Agreement shall be binding
upon and inure to the benefit of the Company, the Holders and their respective
successors and assigns hereunder.

         17.      TERMINATION.

         This Agreement shall terminate at the earlier of (i) the public sale of
all of the Registrable Securities, or (ii) at the close of business on
__________, 2007. Notwithstanding the foregoing, the indemnification provisions
of Section 7 shall survive such termination.

         18.      GOVERNING LAW; SUBMISSION TO JURISDICTION.

         This Agreement and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of Florida and for all
purposes shall be construed in accordance with the laws of said State without
giving effect to the rules of said State governing the conflicts of laws. The
Company, the Managing Underwriter and the Holders hereby agree that any action,
proceeding or claim arising out of, or relating in any way to, this Agreement
shall be brought and enforced in a federal or state court of competent
jurisdiction with venue only in the Fifteenth Judicial Circuit Court in and for
Palm Beach County, Florida or the United States District Court for the Southern
District of Florida, West Palm Beach Division, and irrevocably submits to such
jurisdiction, which jurisdiction shall be exclusive. The Company, the Managing
Underwriter and the Holders hereby irrevocably waive any objection to such
exclusive jurisdiction or inconvenient forum. A party to this Agreement named as
a Defendant in any action brought in connection with this Agreement in any court
outside of the above named designated county or district shall have the right to
have the venue of said action changed to the above designated county or district
or, if necessary, have the case dismissed, requiring the other party to refile
such action in an appropriate court in the above designated county or federal
district.

         19.      SEVERABILITY.

         If any provision of this Agreement shall be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provision of this Agreement.

         20.      CAPTIONS.

         The caption headings of the Sections of this Agreement are for
convenience of reference only and are not intended, nor should they be construed
as, a part of this Agreement and shall be given no substantive effect.

         21. BENEFITS OF THIS AGREEMENT.


                                       11

<PAGE>


         Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company and the Managing Underwriter and any other
registered Holder(s) of the Warrant Certificates or Registrable Securities any
legal or equitable right, remedy or claim under this Agreement; and this
Agreement shall be for the sole and exclusive benefit of the Company and the
Managing Underwriter and any other Holder(s) of the Warrant Certificates or
Registrable Securities.

         22.      COUNTERPARTS.

         This Agreement may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and
such counterparts shall together constitute but one and the same instrument.

         IN WITNESS HEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the day and year first above written.

                                                PRECIS SMART CARD SYSTEMS, INC.



                                         BY:
                                            -----------------------------------
                                                Larry E. Howell
                                                Chief Executive Officer


Attest:


------------------------------
Mark R. Kidd, Secretary



                                                BARRON CHASE SECURITIES, INC.


                                         By:
                                            -----------------------------------
                                                Robert Kirk, President






                                       12

<PAGE>


                         PRECIS SMART CARD SYSTEMS, INC.



                               WARRANT CERTIFICATE




THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO THE
EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH ACT
RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF
SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

                            EXERCISABLE ON OR BEFORE
                   5:30 P.M, EASTERN TIME ON ___________, 2004


NO. W-____                                        _____________ Common Stock
                                                      Underwriter
                                                      Warrants


         This Warrant Certificate certifies that _____________, or registered
assigns, is the registered holder of_________ Common Stock Underwriter
Warrants of PRECIS SMART CARD SYSTEMS, INC. (the "Company"). Each Common
Stock Underwriter Warrant permits the Holder hereof to purchase initially, at
any time from __________, 2000 ("Purchase Date") until 5:30 p.m. Eastern Time
on __________, 2004 ("Expiration Date"), one (1) share of the Company's
Common Stock at the initial exercise price, subject to adjustment in certain
events (the "Exercise Price"), of $9.00 per share (150% of the public
offering price).

         Any exercise of Common Stock Underwriter Warrants shall be effected by
surrender of this Warrant Certificate and payment of the Exercise Price at an
office or agency of the Company, but subject to the conditions set forth herein
and in the Underwriter's Warrant Agreement dated as of ________, 2000, between
the Company and Barron Chase Securities, Inc. (the "Underwriter's Warrant
Agreement"). Payment of the Exercise Price shall be made by certified check or
official bank check in New York Clearing House funds payable to the order of the
Company in the event there is no cashless exercise pursuant to Section 3.1(ii)
of the Underwriter's Warrant Agreement. The Common Stock Underwriter Warrants
are also referred to as "Warrants".

         No Warrant may be exercised after 5:30 p.m., Eastern Time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, hereby shall thereafter be void.

         The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Underwriter's Warrant
Agreement, which Underwriter's Warrant Agreement is hereby incorporated by
reference in and made a part of this instrument and is hereby referred to for a
description of the rights, limitation or rights, obligations, duties and
immunities thereunder of the Company and the holders (the words "holders" or
"holder" meaning the registered holders or registered holder) of the Warrants.


                                       13

<PAGE>

         The Underwriter's Warrant Agreement provides that upon the occurrence
of certain events, the Exercise Price and the type and/or number of the
Company's securities issuable thereupon may, subject to certain conditions, be
adjusted. In such event, the Company will, at the request of the holder, issue a
new Warrant Certificate evidencing the adjustment in the Exercise Price and the
number and/or type of securities issuable upon the exercise of the Warrants;
provided, however, that the failure of the Company to issue such new Warrant
Certificates shall not in any way change, alter, or otherwise impair, the rights
of the holder as set forth in the Underwriter's Warrant Agreement.

         Upon due presentment for registration or transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Underwriter's
Warrant Agreement, without any charge except for any tax or other governmental
charge imposed in connection with such transfer.

         Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.

         The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.

         All terms used in this Warrant Certificate which are defined in the
Underwriter's Warrant Agreement shall have the meanings assigned to them in the
Underwriter's Warrant Agreement.

         IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed.


Dated as of __________, 2000


                                                PRECIS SMART CARD SYSTEMS, INC.



                                                  BY:
                                                     ------------------------
                                                Larry E. Howell
                                                Chief Executive Officer

Attest:


----------------------------
Mark R. Kidd, Secretary









                                       14

<PAGE>

                                   EXHIBIT "A"

                      FORM OF SUBSCRIPTION (CASH EXERCISE)

                  (To be signed only upon exercise of Warrant)


TO:      Precis Smart Card Systems, Inc.
         11032 Quail Creek Road, Suite 108
         Oklahoma City, OK 73120


         The undersigned, the Holder of Warrant Certificate number
__________(the "Warrant"), representing ____________ Common Stock Underwriter
Warrants of PRECIS SMART CARD SYSTEMS, INC. (the "Company"), which Warrant
Certificate is being delivered herewith, hereby irrevocably elects to
exercise the purchase right provided by the Warrant Certificate for, and to
purchase thereunder, ____________ Shares of the Company, and herewith makes
payment of $_______ therefor, and requests that the certificates for such
securities be issued in the name of, and delivered to, _________________,
whose address is __________________________________________ , all in
accordance with the Underwriter's Warrant Agreement and the Warrant
Certificate.

Dated:_______________




                                -----------------------------------------------
                                (Signature must conform in all respects to
                                name of Holder as specified on the face of the
                                Warrant Certificate)


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

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




                                --------------------------
                                (Social Security Number or
                                Tax Identification Number)






                                       15

<PAGE>



                                   EXHIBIT "B"

                    FORM OF SUBSCRIPTION (CASHLESS EXERCISE)




TO:      Precis Smart Card Systems, Inc.
         11032 Quail Creek Road, Suite 108
         Oklahoma City, OK 73120


         The undersigned, the Holder of Warrant Certificate number_________(the
"Warrant"), representing __________ Common Stock Underwriter Warrants of PRECIS
SMART CARD SYSTEMS, INC. (the "Company"), which Warrant is being delivered
herewith, hereby irrevocably elects the cashless exercise of the purchase right
provided by the Underwriter's Warrant Agreement and the Warrant Certificate for,
and to purchase thereunder, Shares of the Company in accordance with the formula
provided at Section three (3) of the Underwriter's Warrant Agreement. The
undersigned requests that the certificates for such Shares be issued in the name
of, and delivered to, ___________________________________________________ ,
whose address is, _____________________________ , all in accordance with the
Warrant Certificate.

Dated:                          Signature:
      ----------------

                                -----------------------------------------------
                                (Signature must conform in all respects to
                                name of Holder as specified on the face of the
                                Warrant Certificate)


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

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




                                -----------------------------------------------
                                (Social Security Number or
                                Tax Identification Number)




                                       16

<PAGE>



                              (FORM OF ASSIGNMENT)

                (To be exercised by the registered holder if such
              holder desires to transfer the Warrant Certificate.)

         FOR VALUE RECEIVED _______________________________________ hereby
sells, assigns and transfers unto

                     (Print name and address of transferee)

this Warrant Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint ____________________
Attorney, to transfer the within Warrant Certificate on the books of the
within-named Company, with full power of substitution.


Dated:                    Signature:


                          ------------------------------------------------------
                          (Signature must conform in all respects to name of
                          holder as specified on the fact of the Warrant
                          Certificate)



                          ------------------------------------------------------
                          (Insert Social Security or Other Identifying Number of
                          Assignee)


                                       17