Document:

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                                                     April __, 2000

Whale Securities Co., L.P.
650 Fifth Avenue
New York, New York 10019

                           Re:  Delcath Systems, Inc.

Dear Sir or Madam:

                  In order to induce Whale Securities Co., L.P. (the
"Underwriter") to enter into an underwriting agreement with Delcath Systems,
Inc. (the "Company") in connection with the proposed public offering of the
common stock of the Company (the "Common Stock") contemplated by that certain
letter of intent between the Company and the Underwriter dated March 8, 2000
(the "Proposed Offering"), and as described in a registration statement filed
with the Securities and Exchange Commission (the "SEC") (such Registration
Statement, as may be amended, is referred to herein as the "Registration
Statement"), and as consideration for the Underwriter participating in the
Proposed Offering, the undersigned hereby agrees that:

                 (1) Until twelve (12) months after the date the Registration
Statement is declared effective by the SEC (the "Effective Date"), the
undersigned will not[, without the prior written consent of the Underwriter,]
[delete the bracketed language for any bridge financing lender] directly or
indirectly, through an "affiliate", "associate" (as such terms are defined in
the rules and regulations promulgated under the Securities Act of 1933, as
amended (the "Act")), a family member or otherwise:

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                      (i) offer, pledge, hypothecate, sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant for the sale of, or otherwise dispose
of or transfer any shares of the Company's Common Stock or any securities of the
Company, including but not limited to, any securities convertible into or
exchangeable or exercisable for Common Stock, whether now owned or hereafter
acquired by the undersigned or with respect to which the undersigned has or
hereafter acquires the power of disposition, or file any registration statement
under the Act with respect to any of the foregoing;

                      (ii) enter into any swap or any other agreement or any
transaction that transfers, in whole or in part, directly or indirectly, the
economic consequence of ownership of the Common Stock or other securities,
whether any such swap or transaction is to be settled by delivery of Common
Stock or other securities, in cash or otherwise; and

                      (iii) exercise any registration rights relating to any
securities of the Company.

                  (2) [for those letters be signed by officers, directors and
5% or greater stockholders of Common Stock] During the twelve months following
the end of the Lock-Up Period, the undersigned securityholder will not, without
the Underwriter's prior written consent, sell, transfer, pledge, hypothecate or
otherwise dispose of any of its shares of Common Stock during any three-month
period in excess of the amount that the undersigned would be allowed to sell if
it were deemed an "affiliate" of the Company and its shares were deemed
"restricted," as those terms are defined in Rule 144 promulgated under the Act
(i.e., in general, no more than the greater of (a) 1% of the then outstanding
shares of Common Stock and (b) the average weekly trading volume of the Common
Stock during the four calendar weeks preceding such sale);

                  (3) The undersigned agrees that an appropriate legend will be
placed on any securities of the Company held by the undersigned to the effect
that the securities may not be sold or otherwise disposed in accordance with
this agreement without the prior written consent of the Underwriter.

<PAGE>

                  (4) For a period of three (3) years following the Effective
Date, the undersigned securityholder will vote all of the voting securities of
the Company owned by the undersigned securityholder in favor of the election of
a designee, if any, of the Underwriter (which designee may change from time to
time) to the Company's Board of Directors.

                                               Very truly yours,

                                               SECURITYHOLDER:

                                               Name:  _______________________

                                               Address:  ____________________

                                               Date:     __________

                                               Number of Shares of Common
                                               Stock Beneficially Owned:

                                               Other Securities of the Company
                                               Beneficially Owned (describe
                                               securities and state amount):<PAGE>

                                                                  EXHIBIT 10.8

                              DELCATH SYSTEMS, INC.
                                 PROMISSORY NOTE

$__________                                                September __, 2000

         FOR VALUE RECEIVED, DELCATH SYSTEMS, INC., a Delaware corporation (the
"Company") with its principal executive office at 1100 Summer Street, Stamford,
Connecticut 06905, promises to pay to:

                           ___________________________
                           ___________________________
                           ___________________________

(the "Payee") or permitted successors and assigns of the Payee, on or before
June __, 2001, the principal amount of ____________________and 00/100 Dollars
($_______) (the "Principal Amount"), together with interest thereon, at the rate
of 22% per annum, at Payee's address set forth above, or at such other place as
the Payee shall have notified the Company before any payment hereunder. The Note
shall not be prepayable.

         This Note is one of several notes (the "Bridge Notes") issued by the
Company in the aggregate principal amount of $230,000 to provide bridge
financing pending the consummation of a proposed initial public offering by the
Company of its common stock (the "IPO").

         If the Company defaults in the payment of principal and interest on the
Bridge Notes, and has not closed on an initial public offering within nine (9)
months from the date of this Note then the Company, at its option, may satisfy
the Bridge Notes by issuing that aggregate number of shares of the Company as
equal to ten (10%) percent of the Company's then outstanding number of shares,
after giving effect to the issuance of shares to all the Bridge Note holders.
Each Payee shall be entitled to receive his pro rata portion of such aggregate
number of shares. If the Company does not exercise its option to satisfy the
Bridge Notes through issuance of shares then within 10 days of any such default
then any Payee shall have the right to demand payment in shares as provided
herein.

         The Company further agrees:

         (i) Upon the consummation of the IPO, it will segregate from the
proceeds received therefrom the amount equal to the principal and interest
payable through maturity of the Note in a Certificate of Deposit which it shall
earmark for repayment of the Note.

         (ii) It will make available to the Payee copies of any registration
statement registering its stock with the Securities and Exchange Commission if
and when requested by the Payee.

         (iii) It will reimburse the Payee for expenses, including legal fees,
incurred by Payee in connection with the loan evidenced by this Note provided
such amount is submitted to the Company in advance of the loan and agreed to and
accepted by the Company.

         Anything above to the contrary notwithstanding, this Note shall become
immediately due and payable if the Company shall: (i) apply for or consent to
the appointment of a receiver, trustee, custodian or liquidator of it or any of
its properties, (ii) admit in writing its inability to pay its debts as they
<PAGE>

mature, (iii) make a general assignment for the benefit of creditors, (iv) be
adjudicated a bankrupt or insolvent or be the subject of an order for relief
under Title 11 of the United States Code, (v) file a voluntary petition in
bankruptcy, or a petition or an answer seeking reorganization or an arrangement
with creditors or to take advantage or any bankruptcy, reorganization,
insolvency, readjustment of debt, dissolution or liquidation law or statute, or
an answer admitting the material allegations of a petition filed against him or
it in any proceeding under any such law, or (vi) take or permit to be taken any
action in furtherance of or for the purpose of effecting any of the foregoing.

         This Note shall be construed in accordance with the laws of New York
and all legal proceedings to enforce payment shall be brought in the state or
federal courts located in New York City.

         The Company hereby waives diligence, presentment, demand, protest and
notice of any kind whatsoever. The nonexercise by Payee of any of its rights
hereunder in any particular instance shall not constitute a waiver thereof in
that or any subsequent instance.

         IN WITNESS WHEREOF, this Note has been executed and delivered on the
date specified above by the duly authorized representative of the Company.

                                        DELCATH SYSTEMS, INC.

                                        By: _____________________________
                                                 Name:
                                                 Title:

                                       2<PAGE>   1
                                                                     EXHIBIT 4.1

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

                                 INITIAL WARRANT

No. W1

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

                                 BLUE ZONE, INC.

        THIS CERTIFIES that, for value received, [____________] (the
"INVESTOR") is entitled, upon the terms and subject to the conditions
hereinafter set forth, at any time on or after the date hereof and on or prior
to 5:00 p.m. New York City Time on September 8, 2003 (the "TERMINATION DATE"),
but not thereafter, to subscribe for and purchase from BLUE ZONE, INC., a
Nevada corporation (the "COMPANY"), [_________] shares of Common Stock of the
Company (the "WARRANT SHARES"). The "EXERCISE PRICE" per share is $8.10. The
Exercise Price and the number of shares for which the Warrant is exercisable
shall be subject to adjustment as provided herein. This Warrant is being issued
in connection with the Common Stock Investment Agreement dated September 8,
2000 (the "AGREEMENT") entered into between, inter alia, the Company and the
Investor. Any capitalized terms used but not defined in this Warrant shall have
the meaning specified in the Agreement.

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

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

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        of any transfer occurring contemporaneously with such issue or otherwise
        specified herein).

3.      Exercise of Warrant.

(a)     Exercise of the purchase rights represented by this Warrant may be made
        at any time or times, in whole or in part before the close of business
        on the Termination Date, or such earlier date on which this Warrant may
        terminate as provided in paragraph 11 below, by the surrender on any
        business day of this Warrant and the Notice of Exercise annexed hereto
        duly completed and executed, at the principal office of the Company (or
        such other office or agency of the Company as it may designate by notice
        in writing to the registered holder hereof at the address of such holder
        appearing on the books of the Company), together with delivery to the
        Company by such holder of all certifications or documentation reasonably
        necessary to establish, to the satisfaction of the Company, that any
        such exercise has been undertaken in compliance with all applicable
        federal and state securities laws, and upon payment of the full Exercise
        Price of the shares thereby purchased; whereupon the holder of this
        Warrant shall be entitled to receive a certificate for the number of
        shares of Common Stock so purchased. Certificates for shares purchased
        hereunder shall be delivered to the holder hereof within four (4)
        Trading Days after the date on which this Warrant shall have been
        exercised as aforesaid. Payment of the Exercise Price of the shares
        shall be by certified check or cashier's check or by wire transfer (of
        same day funds) to an account designated by the Company in an amount
        equal to the Exercise Price multiplied by the number of shares being
        purchased.

(b)     Alternatively, at any time where there is not an Effective Registration,
        the Warrant holder may exercise this Warrant, in whole or in part in a
        "cashless" or "net-issue" exercise by delivering to the offices of the
        Company or any transfer agent for the Common Stock this Warrant,
        together with a Notice of Exercise specifying the number of Warrant
        Shares to be delivered to such Warrant holder ("DELIVERABLE SHARES") and
        the number of Warrant Shares with respect to which this Warrant is being
        surrendered in payment of the aggregate Exercise Price for the
        Deliverable Shares ("SURRENDERED SHARES").

        The number of Deliverable Shares shall be calculated as follows:
<TABLE>
        <S>                                                 <C>
        # of Deliverable Shares = # of Surrendered Shares x Fair Market Value of Common Stock less Exercise Price
                                                            -----------------------------------------------------
                                                            Fair Market Value of Common Stock
</TABLE>

        "FAIR MARKET VALUE" shall have the meaning specified in Section 12(c)

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

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        All exercises will be deemed to occur as of the date of the Notice of
        Exercise, and certificates for shares of Common Stock purchased
        hereunder shall be delivered to the holder hereof within three (3)
        Trading Days after the date on which this Warrant shall have been
        exercised as aforesaid. The Warrant holder may withdraw its Notice of
        Exercise under Section 3(a) or 3(b) at any time thereafter if the
        Company fails to timely deliver the applicable certificates to the
        Warrant holder as provided in this Agreement.

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

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

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

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

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        amount of such tax or shall have established to the satisfaction of the
        Company that such tax has been paid.

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

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

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

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

10.     Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
        taking of any action or the expiration of any right required or granted
        herein shall be a Saturday, Sunday or a

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        legal holiday, then such action may be taken or such right may be
        exercised on the next succeeding day not a legal holiday.

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

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

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

(a)     Subdivisions, Combinations and other Issuances. If the Company shall at
        any time after the date hereof but prior to the expiration of this
        Warrant subdivide its outstanding securities as to which purchase rights
        under this Warrant exist, by split-up, spin-off, or otherwise, or
        combine its outstanding securities as to which purchase rights under
        this Warrant exist, the number of Warrant Shares as to which this
        Warrant is exercisable as of the date of such subdivision, split-up,
        spin-off or combination shall forthwith be proportionately increased in
        the case of a subdivision, or proportionately decreased in the case of a
        combination. Appropriate proportional adjustments (decrease in the case
        of subdivision, increase in the case of combination) shall also be made
        to the Exercise Price payable per share, so that the aggregate Exercise
        Price payable for the total number of Warrant Shares purchasable under
        this Warrant as of such date shall remain the same as it would have been
        before such subdivision or combination.

(b)     Stock Dividend. If at any time after the date hereof the Company
        declares a dividend or other distribution on Common Stock payable in
        Common Stock or other securities or rights convertible into Common Stock
        ("COMMON STOCK EQUIVALENTS") without payment of any consideration by
        holders of Common Stock for the additional shares of Common Stock or the
        Common Stock Equivalents (including the additional shares of Common
        Stock issuable upon exercise or conversion thereof), then the number of
        shares of Common Stock for which this Warrant may be exercised shall be
        increased as of the record date (or the date of such dividend
        distribution if no record date is set) for

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        determining which holders of Common Stock shall be entitled to receive
        such dividends, in proportion to the increase in the number of
        outstanding shares (and shares of Common Stock issuable upon conversion
        of all such securities convertible into Common Stock) of Common Stock as
        a result of such dividend, and the Exercise Price shall be
        proportionately reduced so that the aggregate Exercise Price for all the
        Warrant Shares issuable hereunder immediately after the record date (or
        on the date of such distribution, if applicable), for such dividend
        shall equal the aggregate Exercise Price so payable immediately before
        such record date (or on the date of such distribution, if applicable).

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

(d)     Merger, etc. If at any time after the date hereof there shall be a
        merger or consolidation of the Company with or into or a transfer of all
        or substantially all of the assets of the Company to another entity,
        then the Warrant Holder shall be entitled to receive upon or after such
        transfer, merger or consolidation becoming effective, and upon payment
        of the Exercise Price then in effect, the number of shares or other
        securities or property of the Company or of the successor corporation
        resulting from such merger or consolidation, which would have been
        received by Warrant Holder for the shares of stock subject to this

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<PAGE>   7

        Warrant had this Warrant been exercised just prior to such transfer,
        merger or consolidation becoming effective or to the applicable record
        date thereof, as the case may be. The Company will not merge or
        consolidate with or into any other corporation, or sell or otherwise
        transfer its property, assets and business substantially as an entirety
        to another corporation, unless the corporation resulting from such
        merger or consolidation (if not the Company), or such transferee
        corporation, as the case may be, shall expressly assume in writing the
        due and punctual performance and observance of each and every covenant
        and condition of this Warrant to be performed and observed by the
        Company.

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

(f)     Exercise Price Adjustment. In the event that the Company issues or sells
        any Common Stock or securities which are convertible into or
        exchangeable for its Common Stock or any convertible securities, or any
        warrants or other rights to subscribe for or to purchase or any options
        for the purchase of its Common Stock or any such convertible securities
        (other than shares or options issued or which may be issued pursuant to
        (i) the Company's current or future employee or director option plans or
        shares issued upon exercise of the warrant outstanding on the date of
        the Agreement and listed on Schedule 2.1(c) of the Agreement, (ii)
        arrangements with the Investor, or (iii) acquisitions of other entities
        by the Company) at an effective exercise price per share ("EFFECTIVE
        PRICE") which is less than (A) the fair market value (as described in
        Section 12(c) above) of the Common Stock on the trading day next
        preceding such issue or sale, then in such case, the Exercise Price in
        effect immediately prior to such issue or sale shall be reduced
        effective concurrently with such issue or sale to an amount determined
        by multiplying the Exercise Price then in effect by a fraction, (x) the
        numerator of which shall be the sum of (1) the number of shares of
        Common Stock outstanding immediately prior to such issue or sale, plus
        (2) the number of shares of Common Stock which the aggregate
        consideration received by the Company for such additional shares would
        purchase at such fair market value then in effect; and (y) the
        denominator of which shall be the number of shares of Common Stock of
        the Company outstanding immediately after such issue or sale, or (B) the
        Exercise Price then in effect, then in such case the Exercise Price in
        effect immediately prior to such issue or sale shall be reduced
        effective concurrently with such issue or sale to the Effective Price
        per share.

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

                                       7
<PAGE>   8

        adjustment shall be made upon the actual issuance of Common Stock upon
        exercise, exchange or conversion of such Convertible Securities.

        The number of shares which may be purchased hereunder shall be increased
        proportionately to any reduction in Exercise Price pursuant to this
        paragraph 12(f), so that after such adjustments the aggregate Exercise
        Price payable hereunder for the increased number of shares shall be the
        same as the aggregate Exercise Price in effect just prior to such
        adjustments.

(g)     Minimum Adjustment of Warrant Exercise Price. No adjustment of the
        Exercise Price shall be made under this Section 12 in an amount of less
        than 1% in effect at the time such adjustment is otherwise required to
        be made, but any such lesser adjustment shall be carried forward and
        shall be made at the time and together with the next subsequent
        adjustment which, together with any adjustments so carried forward,
        shall amount to not less than 1% of such Exercise Price. No adjustments
        shall be made pursuant to this Section 12 which would result in an
        increase in the Exercise Price.

13.     Representations of Holder. The holder of this Warrant, by the acceptance
        hereof, represents that it is acquiring this Warrant and the Warrant
        Shares for its own account and not with a view towards, or for resale in
        connection with, the public sale or distribution of this Warrant or the
        Warrant Shares in violation of the Securities Act; provided, however,
        that by making the representations herein, the holder does not agree to
        hold this Warrant or any of the Warrant Shares for any minimum or other
        specific term and reserves the right to dispose of this Warrant and the
        Warrant Shares at any time in accordance with or pursuant to a
        registration statement or an exemption under the Securities Act. The
        holder of this Warrant further represents, by acceptance hereof, that,
        as of this date, such holder is an "accredited investor" as such term is
        defined in Rule 501(a)(1) of Regulation D promulgated by the Securities
        and Exchange Commission under the Securities Act (an "Accredited
        Investor"). If such holder would be unable to make such representations
        upon exercise hereof because they would be factually incorrect, it shall
        be a condition to such holder's exercise of this Warrant that the
        Company receive such other representations as the Company considers
        reasonably necessary to assure the Company that the issuance of its
        securities upon exercise of this Warrant shall not violate any United
        States or state securities laws.

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

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

                                       8
<PAGE>   9
16.     Authorized Shares. The Company covenants that during the period the
        Warrant is outstanding and exercisable, it will reserve from its
        authorized and unissued Common Stock a sufficient number of shares to
        provide for the issuance of the Warrant Shares upon the exercise of any
        purchase rights under this Warrant. The Company further covenants that
        its issuance of this Warrant shall constitute full authority to its
        officers who are charged with the duty of executing stock certificates
        to execute and issue the necessary certificates for the Warrant Shares
        upon the exercise of the purchase rights under this Warrant. The Company
        will take all such reasonable action as may be necessary to assure that
        such Warrant Shares may be issued as provided herein without violation
        of any applicable law or regulation, or of any requirements of the
        American Stock Exchange or any domestic securities exchange or market
        upon which the Common Stock may be listed.

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

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

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

        (iii)   there is a replacement of more than one-half of the members of
                the Company's Board of Directors which is not approved by those
                individuals who are members

                                       9
<PAGE>   10

                of the Company's Board of Directors on the date thereof, in one
                or a series of related transactions, or

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

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

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

        minus

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

               A new and independent covenant will be deemed to be given by the
        holder as of each moment of each Covenant Day. No covenant will
        terminate, diminish or modify any other covenant. The holder agrees to
        comply with each such covenant. This Section 16 controls in the case of
        any conflict with any other provision of the Transaction Documents.

               The Company's obligation to issue Warrant Shares which would
        exceed such limits referred to in this Section 16 shall be suspended to
        the extent necessary until such time, if any, as shares of Common Stock
        may be issued in compliance with such restrictions.

17.     Miscellaneous.

(a)     Issue Date; Choice Of Law; Venue; Jurisdiction. THE PROVISIONS OF THIS
        WARRANT SHALL BE CONSTRUED AND SHALL BE GIVEN EFFECT IN ALL RESPECTS AS
        IF IT HAD BEEN ISSUED AND DELIVERED BY THE COMPANY ON THE DATE HEREOF.
        THIS WARRANT SHALL BE BINDING UPON ANY SUCCESSORS OR ASSIGNS OF THE
        COMPANY. THIS WARRANT WILL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH
        AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, EXCEPT FOR MATTERS
        ARISING UNDER THE ACT, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF
        LAW. EACH OF THE PARTIES CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE
        U.S. DISTRICT COURT SITTING IN THE STATE OF CITY OF NEW YORK IN THE
        STATE OF NEW YORK IN CONNECTION WITH ANY DISPUTE ARISING

                                       10
<PAGE>   11

        UNDER THIS WARRANT AND HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY
        LAW, ANY OBJECTION, INCLUDING ANY OBJECTION BASED ON FORUM NON
        CONVENIENS, TO THE BRINGING OF ANY SUCH PROCEEDING IN SUCH JURISDICTION.
        EACH PARTY HEREBY AGREES THAT IF THE OTHER PARTY TO THIS WARRANT OBTAINS
        A JUDGMENT AGAINST IT IN SUCH A PROCEEDING, THE PARTY WHICH OBTAINED
        SUCH JUDGMENT MAY ENFORCE SAME BY SUMMARY JUDGMENT IN THE COURTS OF ANY
        COUNTRY HAVING JURISDICTION OVER THE PARTY AGAINST WHOM SUCH JUDGMENT
        WAS OBTAINED, AND EACH PARTY HEREBY WAIVES ANY DEFENSES AVAILABLE TO IT
        UNDER LOCAL LAW AND AGREES TO THE ENFORCEMENT OF SUCH A JUDGMENT. EACH
        PARTY TO THIS WARRANT IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN
        ANY SUCH PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR
        CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT ITS ADDRESS IN
        ACCORDANCE WITH SECTION 18(C). NOTHING HEREIN SHALL AFFECT THE RIGHT OF
        ANY PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. EACH
        PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY.

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

(c)     Notices. Any notice, request or other document required or permitted to
        be given or delivered to the Investor or future holders hereof or the
        Company shall be personally delivered or shall be sent by certified or
        registered mail, postage prepaid, to the Investor or each such holder at
        its address as shown on the books of the Company or to the Company at
        the address set forth in the Agreement. All notices under this Warrant
        shall be deemed to have been given when received.

        A party may from time to time change the address to which notices to it
        are to be delivered or mailed hereunder by notice in accordance with the
        provisions of this Section 16(c).

(d)     Severability. Whenever possible, each provision of this Warrant shall be
        interpreted in such manner as to be effective and valid under applicable
        law, but if any provision of this Warrant is held to be invalid, illegal
        or unenforceable in any respect under any applicable law or rule in any
        jurisdiction, such invalidity, illegality or unenforceability shall not
        affect the validity, legality or enforceability of any other provision
        of this Warrant in such jurisdiction or affect the validity, legality or
        enforceability of any provision in any other jurisdiction, but this
        Warrant shall be reformed, construed and enforced in such

                                       11
<PAGE>   12

        jurisdiction as if such invalid, illegal or unenforceable provision had
        never been contained herein.

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

                                       12
<PAGE>   13

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

Dated:  September 8, 2000

                                            BLUE ZONE, INC.

                                            By:
                                                ------------------------------
                                                Name:
                                                Title:

Agreed and Accepted
this 8th day of September, 2000

[INVESTOR]

By:
   -----------------------------------------
     Name:
     Title:

                                       13
<PAGE>   14

                               NOTICE OF EXERCISE

To:     BLUE ZONE, INC.

(1)     The undersigned hereby elects:

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

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

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

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

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

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

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

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

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

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

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

<PAGE>   15

                                 ASSIGNMENT FORM

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

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

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                                   Dated:  ______________,

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

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

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

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

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

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