Document:

REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of June 23, 2000 (this
"Agreement"), is made by and between ZAPWORLD.COM, a California corporation,
with headquarters located at 117 Morris Street, Sebastopol, CA 95472 (the
"Company"), and each entity named on a signature page hereto (each, an "Initial
Investor") (each agreement with an Initial Investor being deemed a separate and
independent agreement between the Company and such Initial Investor, except that
each Initial Investor acknowledges and consents to the rights granted to each
other Initial Investor under such agreement).

                              W I T N E S S E T H:

     WHEREAS, upon the terms and subject to the conditions of the Securities
Purchase Agreement, dated as of June 23, 2000, between the Initial Investor and
the Company (the "Securities Purchase Agreement"; terms not otherwise defined
herein shall have the meanings ascribed to them in the Securities Purchase
Agreement), the Company has agreed to issue and sell to the Initial Investor
shares of Series A-1 and Series A-2 Convertible Preferred Stock of the Company
having an aggregate stated value of $5,000,000 (collectively, the "Preferred
Stock"); and

     WHEREAS, the Company has agreed to issue the Warrants to the Initial
Investor in connection with the issuance of the Preferred Stock; and

     WHEREAS, the Preferred Stock (which term, for purposes of this Agreement,
shall include Periodic Amount Shares, as defined below) is convertible into
shares of Common Stock (the "Conversion Shares"; which term, for purposes of
this Agreement, shall include shares of Common Stock of the Company issuable in
lieu of accrued dividends through the respective maturity dates of the Preferred
Stock as contemplated by the Preferred Stock) upon the terms and subject to the
conditions contained in the Certificate of Determination and the Warrants may be
exercised for the purchase of shares of Common Stock (the "Warrant Shares") upon
the terms and conditions of the Warrants; and

     WHEREAS, to induce the Initial Investor to execute and deliver the
Securities Purchase Agreement, the Company has agreed to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules
and regulations thereunder, or any similar successor statute (collectively, the
"Securities Act"), with respect to the Conversion Shares and the Warrant Shares;

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     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Initial
Investor hereby agree as follows:

     1.  Definitions. As used in this Agreement, the following terms shall have
the following meanings:

     (a) "Investor" means the Initial Investor and any permitted transferee or
assignee who agrees to become bound by the provisions of this Agreement in
accordance with Section 9 hereof and who holds Preferred Stock, Warrants or
Registrable Securities.

     (b) "Potential Material Event" means any of the following: (i) the
possession by the Company of material information not ripe for disclosure in a
registration statement, which shall be evidenced by determinations in good faith
by the Board of Directors of the Company that disclosure of such information in
the registration statement would be detrimental to the business and affairs of
the Company; or (ii) any material engagement or activity by the Company which
would, in the good faith determination of the Board of Directors of the Company,
be adversely affected by disclosure in a registration statement at such time,
which determination shall be accompanied by a good faith determination by the
Board of Directors of the Company that the registration statement would be
materially misleading absent the inclusion of such information.

     (c) "Register," "Registered," and "Registration" refer to a registration
effected by preparing and filing a Registration Statement or Statements in
compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a continuous
basis ("Rule 415"), and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and Exchange Commission
(the "SEC").

     (d) "Registrable Securities" means the Conversion Shares and the Warrant
Shares.

     (e) "Registration Statement" means a registration statement of the Company
under the Securities Act covering Registrable Securities on Form S-3, if the
Company is then eligible to file using such form, and if not eligible, on Form
SB-2 or other appropriate form.

     (f) "Required Effective Date" means the relevant Initial Required Effective
Date or Increased Required Effective Date (as those terms are defined below).

     (g) "Effective Date" means the date the SEC declares a Registration
Statement covering Registrable Securities and otherwise meeting the conditions
contemplated hereby to be effective.

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     2.  Registration.

     (a) Mandatory Registration.

          (i)   The Company shall prepare and file with the SEC, as soon as
     possible after the Initial Closing Date but no later than thirty (30) days
     after the Initial Closing Date (the "Required Filing Date"), either a
     Registration Statement or an amendment to an existing Registration
     Statement, in either event registering for resale by the Investor a
     sufficient number of shares of Common Stock for the Initial Investors to
     sell the Registrable Securities, but in no event less than the number of
     shares equal to the sum of (A) two hundred percent (200%) of the number of
     shares into which the Preferred Stock and all dividends thereon through the
     third annual anniversary of their issuance would be convertible at the time
     of filing of such Registration Statement (assuming for such purposes that
     all shares of Initial Preferred Stock and the maximum number of Additional
     Preferred Stock had been issued, had been eligible to be converted, and had
     been converted, into Conversion Shares in accordance with their terms,
     whether or not such issuance, accrual of dividends, eligibility or
     conversion had in fact occurred as of such date) and (B) the number of
     shares which would be issued upon exercise of all of the Warrants issued
     and to be issued as contemplated by the Securities Purchase Agreement at
     the time of filing of the Registration Statement (assuming for such
     purposes that the maximum number of Additional Preferred Stock had been
     issued and all Warrants had been issued, were eligible to be exercised and
     had been exercised in accordance with their terms, whether or not such
     issuance, eligibility or exercise had in fact occurred as of such date) (or
     such lesser number as may be required by the SEC). The Registration
     Statement (W) shall include only the Registrable Securities and the shares
     specifically listed on Exhibit 1 annexed hereto, and (X) shall also state
     that, in accordance with Rule 416 and 457 under the Securities Act, it also
     covers such indeterminate number of additional shares of Common Stock as
     may become issuable upon conversion of the Preferred Stock and the exercise
     of the Warrants to prevent dilution resulting from stock splits, or stock
     dividends. The Company will use its reasonable best efforts to cause such
     Registration Statement to be declared effective on a date (the "Initial
     Required Effective Date") which is no later than the earlier of (Y) five
     (5) days after oral or written notice by the SEC that it may be declared
     effective or (Z) one hundred twenty (120) days after the Initial Closing
     Date.

          (ii)  If at any time (an "Increased Registered Shares Date"), the
     number of shares of Common Stock represented by the Registrable Shares,
     issued or to be issued as contemplated by the Transaction Agreements,
     exceeds eighty percent (80%) of the aggregate number of shares of Common
     Stock then registered, the Company shall either (X) amend the relevant
     Registration Statement filed by the Company pursuant to the preceding
     provisions of this Section 2, if such Registration Statement has not been
     declared effective by the SEC at that time, to register, in the aggregate,
     at least the number of shares (the "Increased Shares Amount") equal to (A)
     (I) the number of shares theretofore issued on conversion of the Preferred
     Stock (including any dividends paid on conversion by the issuance of
     Conversion Shares) plus (II) two hundred percent (200%) of the

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     number of shares into which the unconverted Preferred Stock and all
     dividends thereon through the thirty six (36) month anniversary of the
     Closing Date would be convertible at the date of such filing (assuming for
     such purposes that all such shares of Preferred Stock had been issued, had
     been eligible to be converted, and had been converted, into Conversion
     Shares in accordance with their terms, whether or not such issuance,
     accrual of dividends, eligibility or conversion had in fact occurred as of
     such date) and (B) the number of shares which would be issued upon exercise
     of all of the Warrants (assuming for such purposes that all Warrants had
     been issued, had been eligible to be exercised and had been exercised in
     accordance with their terms, whether or not such issuance, eligibility or
     exercise had in fact occurred as of such date), or (Y) if such Registration
     Statement has been declared effective by the SEC at that time, file with
     the SEC an additional Registration Statement (an "Additional Registration
     Statement") to register the number of shares equal to the excess of the
     Increased Shares Amount over the aggregate number of shares of Common Stock
     already registered. The Company will use its reasonable best efforts to
     cause such Registration Statement to be declared effective on a date (each,
     an "Increased Required Effective Date") which is no later than (Q) with
     respect to a Registration Statement under clause (X) of this subparagraph
     (ii), the Initial Required Effective Date and (R) with respect to an
     Additional Registration Statement, the earlier of (I) five (5) days after
     notice by the SEC that it may be declared effective or (II) forty- five
     (45) days after the Increased Registered Shares Date.

          (iii) To the extent that any of the Registrable Securities are not
     included in any effective Registration Statement prior to the Additional
     Closing Date, the Company shall prepare and file either a Registration
     Statement or an amendment to an existing Registration Statement,
     registering such Registrable Securities. The provisions of this Agreement,
     including, but not limited to, the provisions of Section 2(a)(i) hereof,
     apply separately with respect to such Registration Statement, except that
     (i) references to the Initial Closing Date shall be deemed to refer to the
     Additional Closing Date, and (ii) clause (Z) of Section 2(a)(i) shall read
     "ninety (90) days after the Additional Closing Date."

          (iv)  The aggregate number of shares registered for the Investors in
     each Registration Statement or amendment thereto shall be allocated among
     the Investors on a pro rata basis among them according to their relative
     Registrable Shares included in such Registration Statement).

     (b) Payments by the Company.

           (i)   If the Registration Statement covering the Registrable
     Securities is not filed in proper form with the SEC by the Required Filing
     Date, the Company will make payment to the Initial Investor in such
     amounts and at such times as shall be determined pursuant to this Section
     2(b).

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           (ii)  If the Registration Statement covering the Registrable
     Securities is not effective by the relevant Required Effective Date or if
     the Investor is restricted from making sales of Registrable Securities
     covered by any previously effective Registration Statement at any time
     (the date such restriction commences, a "Restricted Sale Date") after the
     relevant Effective Date other than during a Permitted Suspension Period
     (as defined below), then the Company will make payments to the Initial
     Investor in such amounts and at such times as shall be determined pursuant
     to this Section 2(b).

          (iii) The amount (the "Periodic Amount") to be paid by the Company to
     the Initial Investor shall be determined as of each Computation Date (as
     defined below) and such amount shall be equal to the Periodic Amount
     Percentage (as defined below) of the Purchase Price for all Preferred Stock
     for the period from the date following the relevant Required Filing Date or
     the Required Effective Date or Restricted Sale Date, as the case may be, to
     the first relevant Computation Date, and thereafter to each subsequent
     Computation Date. The "Periodic Amount Percentage" means (A) one percent
     (1.0%) of the Purchase Price of all Preferred Stock for the first 30 days
     after the relevant date; (B) two percent (2%) of the Purchase Price of all
     Preferred Stock to each Computation Date thereafter. Anything in the
     preceding provisions of this paragraph (iii) to the contrary
     notwithstanding, after the relevant Effective Date the Purchase Price shall
     be deemed to refer to the sum of (X) the principal amount of all Preferred
     Stock not yet converted and (Y) the Held Shares Value (as defined below).
     The "Held Shares Value" means, for shares acquired by the Investor upon a
     conversion within the thirty (30) days preceding the Restricted Sale Date,
     but not yet sold by the Investor, the principal amount of the Preferred
     Stock converted into such Conversion Shares; provided, however, that if the
     Investor effected more than one conversion during such thirty (30) day
     period and sold less than all of such shares, the sold shares shall be
     deemed to be derived first from the conversions in the sequence of such
     conversions (that is, for example, until the number of shares from the
     first of such conversions have been sold, all shares shall be deemed to be
     from the first conversion; thereafter, from the second conversion until all
     such shares are sold). By way of illustration and not in limitation of the
     foregoing, if the Registration Statement is timely filed but is not
     declared effective until one hundred ninety (190) days after the Initial
     Closing Date, the Periodic Amount will aggregate five percent (5%) of the
     Purchase Price of the Preferred Stock theretofore issued (1% for days
     121-150, plus 2% for days 151-180, plus 2% for days 181-195).

          (iv)  Each Periodic Amount will be payable by the Company, except as
     provided in the other provisions of this subparagraph (iv), in cash or
     other immediately available funds to the Investor (1) on the day after the
     Required Filing Date or the Required Effective Date, as the case may be,
     and (2) on the earlier of (A) each thirtieth day thereafter, (B) the third
     business day after the date the Registration Statement is filed or is
     declared effective, or (C) the third business day after the Registration
     Statement has its restrictions removed after the relevant Effective Date,
     as the case may be, in each case without requiring demand therefor by the
     Investor. Notwithstanding the provisions of the first sentence of this
     subparagraph (iv), at the option of the Investor, exercisable in its sole
     and absolute discretion by written notice to the Company at any time before

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     the Periodic Amount is paid, all or a portion of the Periodic Amount shall
     be paid by the issuance of additional shares of Series A-1 or Series A-2
     Preferred Stock to the Investor ("Periodic Amount Shares") having a stated
     value equal to the Periodic Amount being paid thereby.  The Periodic Amount
     Shares shall be of the same series as the shares for which the Periodic
     Amount is computed.

          (v)   The parties acknowledge that the damages which may be incurred
     by the Investor if the Registration Statement is not filed by the Required
     Filing Date or the Registration Statement has not been declared effective
     by a Required Effective Date, including if the right to sell Registrable
     Securities under a previously effective Registration Statement is
     suspended, may be difficult to ascertain. The parties agree that the
     Periodic Amounts represent a reasonable estimate on the part of the
     parties, as of the date of this Agreement, of the amount of such damages.

          (vi)  Notwithstanding the foregoing, the amounts payable by the
     Company pursuant to this provision shall not be payable (i) to the extent
     any delay in the effectiveness of the Registration Statement occurs
     because of an act of, or a failure to act or to act timely by the Initial
     Investor or its counsel, (ii) in the event all of the Registrable
     Securities may be sold pursuant to Rule 144 or another available exemption
     under the Act without volume or other restrictions or limits or (iii) with
     respect to a Permitted Suspension Period.

          (vii) "Computation Date" means (A) the date which is the earlier of
     (1) thirty (30) days after the Required Filing Date, any relevant Required
     Effective Date or a Restricted Sale Date, as the case may be, or (2) the
     date after the Required Filing Date, such Required Effective Date or
     Restricted Sale Date on which the Registration Statement is filed (with
     respect to payments due as contemplated by Section 2(b)(i) hereof) or is
     declared effective or has its restrictions removed (with respect to
     payments due as contemplated by Section 2(b)(ii) hereof), as the case may
     be, and (B) each date which is the earlier of (1) thirty (30) days after
     the previous Computation Date or (2) the date after the previous
     Computation Date on which the Registration Statement is filed (with respect
     to payments due as contemplated by Section 2(b)(i) hereof) or is declared
     effective or has its restrictions removed (with respect to payments due as
     contemplated by Section 2(b)(ii) hereof), as the case may be.

     3.  Obligations of the Company. In connection with the registration of the
Registrable Securities, the Company shall do each of the following:

     (a) Prepare promptly, and file with the SEC by the Required Filing Date a
Registration Statement with respect to not less than the number of Registrable
Securities provided in Section 2(a) above, and thereafter use its reasonable
best efforts to cause such Registration Statement relating to Registrable
Securities to become effective by the Required Effective Date and keep the
Registration Statement effective at all times during the period (the
"Registration Period") continuing until the earliest of (i) the date that is
three (3) years after the last day of the calendar month following the month in
which the relevant Effective Date occurs, (ii) the date when the Investors may
sell all Registrable Securities under Rule 144 without volume or other
restrictions or

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limits or (iii) the date the Investors no longer own any of the Registrable
Securities, which Registration Statement (including any amendments or
supplements thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading;

     (b) Prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to the Registration Statement and the prospectus
used in connection with the Registration Statement as may be necessary to keep
the Registration Statement effective at all times during the Registration
Period, and, during the Registration Period, comply with the provisions of the
Securities Act with respect to the disposition of all Registrable Securities of
the Company covered by the Registration Statement until such time as all of such
Registrable Securities have been disposed of in accordance with the intended
methods of disposition by the seller or sellers thereof as set forth in the
Registration Statement;

     (c) Permit a single firm of counsel designated by the Initial Investors to
review the Registration Statement and all amendments and supplements thereto a
reasonable period of time (but not less than three (3) business days) prior to
their filing with the SEC, and not file any document in a form to which such
counsel reasonably objects;

     (d) Notify each Investor and such Investor's legal counsel identified to
the Company and which has requested by written notice to the Company that it
receive such notification (which, until further notice, shall be deemed to be
Krieger & Prager LLP, Attn: Samuel Krieger, Esq., which firm has requested to
receive such notification; each, an "Investor's Counsel"), and any managing
underwriters immediately (and, in the case of (i)(A) below, not less than three
(3) business days prior to such filing) and (if requested by any such person)
confirm such notice in writing no later than one (1) business day following the
day (i)(A) when a Prospectus or any Prospectus supplement or post- effective
amendment to the Registration Statement is proposed to be filed; (B) whenever
the SEC notifies the Company whether there will be a "review" of such
Registration Statement; (C) whenever the Company receives (or a representative
of the Company receives on its behalf) any oral or written comments from the SEC
in respect of a Registration Statement (copies or, in the case of oral comments,
summaries of such comments shall be promptly furnished by the Company to the
Investors); and (D) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the SEC or any other Federal or state governmental authority for
amendments or supplements to the Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the SEC of any stop order
suspending the effectiveness of the Registration Statement covering any or all
of the Registrable Securities or the initiation of any proceedings for that
purpose; (iv) if at any time any of the representations or warranties of the
Company contained in any agreement (including any underwriting agreement)
contemplated hereby ceases to be true and correct in all material respects; (v)
of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from

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qualification of any of the Registrable Securities for sale in any jurisdiction,
or the initiation or threatening of any proceeding for such purpose; and (vi) of
the occurrence of any event that to the best knowledge of the Company makes any
statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration Statement
or the Prospectus, as the case may be, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. In addition, the
Company shall furnish the Investor's Counsel with copies of all intended written
responses to the comments contemplated in clause (C) of this Section 3(d) not
later than one (1) business day in advance of the filing of such responses with
the SEC so that the Investors shall have the opportunity to comment thereon;

     (e) Furnish to each Investor and such Investor's Counsel (i) promptly after
the same is prepared and publicly distributed, filed with the SEC, or received
by the Company, one (1) copy of the Registration Statement, each preliminary
prospectus and prospectus, and each amendment or supplement thereto, and (ii)
such number of copies of a prospectus, and all amendments and supplements
thereto and such other documents, as such Investor may reasonably request in
order to facilitate the disposition of the Registrable Securities owned by such
Investor;

     (f) As promptly as practicable after becoming aware thereof, notify each
Investor of the happening of any event of which the Company has knowledge, as a
result of which the prospectus included in the Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and use its best efforts promptly to prepare a supplement or
amendment to the Registration Statement or other appropriate filing with the SEC
to correct such untrue statement or omission, and deliver a number of copies of
such supplement or amendment to each Investor as such Investor may reasonably
request;

     (g) As promptly as practicable after becoming aware thereof, notify each
Investor who holds Registrable Securities being sold (or, in the event of an
underwritten offering, the managing underwriters) of the issuance by the SEC of
a Notice of Effectiveness or any notice of effectiveness or any stop order or
other suspension of the effectiveness of the Registration Statement at the
earliest possible time;

     (h) Notwithstanding the foregoing, if at any time or from time to time
after the date of effectiveness of the Registration Statement, the Company
notifies the Investors in writing of the existence of a Potential Material
Event, the Investors shall not offer or sell any Registrable Securities, or
engage in any other transaction involving or relating to the Registrable
Securities, from the time of the giving of notice with respect to a Potential
Material Event until such Investor receives

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written notice from the Company that such Potential Material Event either has
been disclosed to the public or no longer constitutes a Potential Material
Event; provided, however, that the Company may not so suspend the right to such
holders of Registrable Securities during the periods the Registration Statement
is required to be in effect other than during a Permitted Suspension Period (and
the applicable provisions of Section 2(b) shall apply with respect to any such
suspension other than during a Permitted Suspension Period) . The term
"Permitted Suspension Period" means up to two such suspension periods during any
consecutive 12-month period, each of which suspension period shall not either
(i) be for more than ten (10) days or (ii) begin less than ten (10) business
days after the last day of the preceding suspension (whether or not such last
day was during or after a Permitted Suspension Period); provided further that
the Company shall, if lawful to do so, provide the Investor with at least two
(2) business days' notice of the existence (but not the substance of) a
Potential Material Event;

     (i) Use its reasonable efforts to secure and maintain the designation of
all the Registrable Securities covered by the Registration Statement on the
"Nasdaq/SmallCap Market" of the National Association of Securities Dealers
Automated Quotations System ("NASDAQ") within the meaning of Rule 11Aa2-1 of the
SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
and the quotation of the Registrable Securities on The Nasdaq/SmallCap Market;
and, without limiting the generality of the foregoing, to arrange for at least
two market makers to register with the National Association of Securities
Dealers, Inc. as such with respect to such Registrable Securities;

     (j) Provide a transfer agent and registrar, which may be a single entity,
for the Registrable Securities not later than the initial Effective Date.

     (k) Cooperate with the Investors who hold Registrable Securities being
offered to facilitate the timely preparation and delivery of certificates for
the Registrable Securities to be offered pursuant to the Registration Statement
and enable such certificates for the Registrable Securities to be in such
denominations or amounts as the case may be, as the Investors may reasonably
request, and, within five (5) business days after a Registration Statement which
includes Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel selected by the Company to deliver,
to the transfer agent for the Registrable Securities (with copies to the
Investors whose Registrable Securities are included in such Registration
Statement) an appropriate instruction and opinion of such counsel; and

     (l) Take all other reasonable actions necessary to expedite and facilitate
disposition by the Investor of the Registrable Securities pursuant to the
Registration Statement.

     4.  Obligations of the Investors. In connection with the registration of
the Registrable Securities, the Investors shall have the following obligations:

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     (a) It shall be a condition precedent to the obligations of the Company to
complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities
held by it, and the intended method of disposition of the Registrable Securities
held by it, as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request. At least ten (10) days prior
to the first anticipated filing date of the Registration Statement, the Company
shall notify each Investor of the information the Company requires from each
such Investor (the "Requested Information") if such Investor has any Registrable
Securities included in the Registration Statement. If at least two (2) business
days prior to the filing date the Company has not received the Requested
Information from an Investor (a "Non-Responsive Investor"), then the Company may
file the Registration Statement without including Registrable Securities of such
Non-Responsive Investor;

     (b) Each Investor, by such Investor's acceptance of the Registrable
Securities, agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of the Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such Investor's election to exclude all of such Investor's Registrable
Securities from the Registration Statement; and

     (c) Each Investor agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(f) or 3(g),
above, such Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Investor's receipt of the copies of the supplemented or
amended prospectus contemplated by Section 3(f) or 3(g) and, if so directed by
the Company, such Investor shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction)
all copies in such Investor's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

     5.  Expenses of Registration. All reasonable expenses (other than
underwriting discounts and commissions of the Investor) incurred in connection
with registrations, filings or qualifications pursuant to Section 3, but
including, without limitation, all registration, listing, and qualifications
fees, printers and accounting fees, the fees and disbursements of counsel for
the Company shall be borne by the Company. In addition, a fee for a single
counsel for the Investors (as a group and not individually) equal to $4,500 for
the review of each Registration Statement and $2,000 for each post-effective
amendment to a Registration Statement, shall be borne by the Company.

     6.  Indemnification. In the event any Registrable Securities are included
in a Registration Statement under this Agreement:

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     (a) To the extent permitted by law, the Company will indemnify and hold
harmless each Investor who holds such Registrable Securities, the directors, if
any, of such Investor, the officers, if any, of such Investor, each person, if
any, who controls any Investor within the meaning of the Securities Act or the
Exchange Act (each, an "Indemnified Person" or "Indemnified Party"), against any
losses, claims, damages, liabilities or expenses (joint or several) incurred
(collectively, "Claims") to which any of them may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Claims (or
actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon any of the following statements, omissions or
violations in the Registration Statement, or any post-effective amendment
thereof, or any prospectus included therein: (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement or
any post-effective amendment thereof or the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, (ii) any untrue statement or alleged
untrue statement of a material fact contained in the final prospectus (as
amended or supplemented, if the Company files any amendment thereof or
supplement thereto with the SEC) or the omission or alleged omission to state
therein any material fact necessary to make the statements made therein, in
light of the circumstances under which the statements therein were made, not
misleading or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or any rule or
regulation under the Securities Act, the Exchange Act or any state securities
law (the matters in the foregoing clauses (i) through (iii) being, collectively,
"Violations"). Subject to clause (b) of this Section 6, the Company shall
reimburse the Investors, promptly as such expenses are incurred and are due and
payable, for any legal fees or other reasonable expenses incurred by them in
connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(a) shall not (I) apply to a Claim arising out of or
based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by or on behalf of any
Indemnified Person expressly for use in connection with the preparation of the
Registration Statement or any such amendment thereof or supplement thereto,
after such prospectus was made available by the Company pursuant to Section 3(c)
hereof; (II) be available to the extent such Claim is based on a failure of the
Investor to deliver or cause to be delivered the prospectus made available by
the Company or the amendment or supplement thereto made available by the
Company; (III) be available to the extent such Claim is based on the delivery of
a prospectus by the Investor after receiving notice from the Company under
Section 3(f), (g) or (h) hereof (other than a notice regarding the effectiveness
of the Registration Statement or any amendment or supplement thereto), or (IV)
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld or delayed. Each Investor will indemnify the Company and
its officers, directors and agents (each, an "Indemnified Person" or
"Indemnified Party") against any claims arising out of or based upon a Violation
which occurs in reliance upon and in conformity with information furnished in
writing to the Company, by or on behalf of such Investor, expressly for use in
connection with the preparation of the Registration Statement or the amendment
or supplement thereto, subject to such limitations

                                       11

<PAGE>

and conditions as are applicable to the Indemnification provided by the Company
to this Section 6. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified Person
and shall survive the transfer of the Registrable Securities by the Investors
pursuant to Section 9.

     (b) Promptly after receipt by an Indemnified Person or Indemnified Party
under this Section 6 of notice of the commencement of any action (including any
governmental action), such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified Person or the Indemnified Party, as the case may be. In case any
such action is brought against any Indemnified Person or Indemnified Party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate in, and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, assume the defense
thereof, subject to the provisions herein stated and after notice from the
indemnifying party to such Indemnified Person or Indemnified Party of its
election so to assume the defense thereof, the indemnifying party will not be
liable to such Indemnified Person or Indemnified Party under this Section 6 for
any legal or other reasonable out-of-pocket expenses subsequently incurred by
such Indemnified Person or Indemnified Party in connection with the defense
thereof other than reasonable costs of investigation, unless the indemnifying
party shall not pursue the action to its final conclusion. The Indemnified
Person or Indemnified Party shall have the right to employ separate counsel in
any such action and to participate in the defense thereof, but the fees and
reasonable out-of-pocket expenses of such counsel shall not be at the expense of
the indemnifying party if the indemnifying party has assumed the defense of the
action with counsel reasonably satisfactory to the Indemnified Person or
Indemnified Party provided such counsel is of the opinion that all defenses
available to the Indemnified Party can be maintained without prejudicing the
rights of the indemnifying party. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to the
extent that the indemnifying party is prejudiced in its ability to defend such
action. The indemnification required by this Section 6 shall be made by periodic
payments of the amount thereof during the course of the investigation or
defense, as such expense, loss, damage or liability is incurred and is due and
payable.

     7.  Contribution. To the extent any indemnification by an indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 6 to the fullest extent permitted by law; provided,
however, that (a) no contribution shall be made under circumstances where the
maker would not have been liable for indemnification under the fault

                                       12

<PAGE>

standards set forth in Section 6; (b) no seller of Registrable Securities guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation; and (c)
except where the seller has committed fraud (other than a fraud by reason of the
information included or omitted from the Registration Statement as to which the
Company has not given notice as contemplated under Section 3 hereof) or
intentional misconduct, contribution by any seller of Registrable Securities
shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.

     8.  Reports under Securities Act and Exchange Act. With a view to making
available to Investor the benefits of Rule 144 promulgated under the Securities
Act or any other similar rule or regulation of the SEC that may at any time
permit Investor to sell securities of the Company to the public without
Registration ("Rule 144"), the Company agrees to:

     (a) make and keep public information available, as those terms are
understood and defined in Rule 144;

     (b) file with the SEC in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and

     (c) furnish to Investor so long as Investor owns Registrable Securities,
promptly upon request, (i) a written statement by the Company that it has
complied with the reporting requirements of the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company and (iii) such
other information as may be reasonably requested to permit Investor to sell such
securities pursuant to Rule 144 without Registration.

     (d) The Company will, at the request of any Holder of Registrable
Securities, upon receipt from such Holder of a certificate certifying (i) that
such Holder has held such Registrable Securities for a period of not less than
one (1) year, (ii) that such Holder has not been an affiliate (as defined in
Rule 144) of the company for more than the ninety (90) preceding days, and (iii)
as to such other matters as may be appropriate in accordance with such Rule,
remove from the stock certificate representing such Registrable Securities that
portion of any restrictive legend which relates to the registration provisions
of the Securities Act, provided, however, counsel to Investor may provide such
instructions and opinion to the transfer agent regarding the removal of the
restrictive legend.

     9.  Assignment of the Registration Rights. The rights to have the Company
register Registrable Securities pursuant to this Agreement shall be
automatically assigned by the Investors to any transferee of the Registrable
Securities (or all or any portion of any unconverted

                                       13

<PAGE>

Preferred Stock or unexercised Warrant) only if: (a) the Investor agrees in
writing with the transferee or assignee to assign such rights, and a copy of
such agreement is furnished to the Company within a reasonable time after such
assignment, (b) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (i) the name and address of such
transferee or assignee and (ii) the securities with respect to which such
registration rights are being transferred or assigned, (c) immediately following
such transfer or assignment the further disposition of such securities by the
transferee or assignee is restricted under the Securities Act and applicable
state securities laws, (d) at or before the time the Company received the
written notice contemplated by clause (b) of this sentence the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
contained herein, and (e) such transfer of Registrable Securities is completed
and disclosed to the Company prior to the initial Effective Date or involves the
transfer of Registrable Securities resulting from the conversion of Preferred
Stock having a stated value of at least $200,000. In the event of any delay in
filing or effectiveness of the Registration Statement as a result of such
assignment, the Company shall not be liable for any damages arising from such
delay, or the payments set forth in Section 2(b) hereof arising from such delay.

     10. Amendment of Registration Rights. Any provision of this Agreement may
be amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with the
written consent of the Company and Investors who hold a eighty (80%) percent
interest of the Registrable Securities (as calculated by the stated value of the
Preferred Stock without any reference to the Warrant Shares). Any amendment or
waiver effected in accordance with this Section 10 shall be binding upon each
Investor and the Company.

     11. Miscellaneous.

     (a) A person or entity is deemed to be a holder of Registrable Securities
whenever such person or entity owns of record such Registrable Securities. If
the Company receives conflicting instructions, notices or elections from two or
more persons or entities with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Securities.

     (b) Notices required or permitted to be given hereunder shall be given in
the manner contemplated by the Securities Purchase Agreement, (i) if to the
Company or to the Initial Investor, to their respective address contemplated by
the Securities Purchase Agreement, and (ii) if to any other Investor, at such
address as such Investor shall have provided in writing to the Company, or at
such other address as each such party furnishes by notice given in accordance
with this Section 11(b).

                                       14

<PAGE>

     (c) Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

     (d) This Agreement shall be governed by and interpreted in accordance with
the laws of the State of New York for contracts to be wholly performed in such
state and without giving effect to the principles thereof regarding the conflict
of laws. Each of the parties consents to the jurisdiction of the federal courts
whose districts encompass any part of the City of New York or the state courts
of the State of New York sitting in the City of New York in connection with any
dispute arising under this Agreement and hereby waives, to the maximum extent
permitted by law, any objection, including any objection based on forum non
coveniens, to the bringing of any such proceeding in such jurisdictions. To the
extent determined by such court, either party hereto shall reimburse the other
party for any reasonable legal fees and disbursements incurred by such party in
enforcement of or protection of any of its rights under this Agreement.

     (e) If any provision of this Agreement shall be invalid or unenforceable in
any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement or the validity or
enforceability of this Agreement in any other jurisdiction.

     (f) Subject to the requirements of Section 9 hereof, this Agreement shall
inure to the benefit of and be binding upon the successors and assigns of each
of the parties hereto.

     (g) All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

     (h) The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning thereof.

     (i) This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same agreement. This Agreement, once executed by a party, may be delivered to
the other party hereto by telephone line facsimile transmission of a copy of
this Agreement bearing the signature of the party so delivering this Agreement.

     (j) The Company acknowledges that any failure by the Company to perform its
obligations under Section 3(a) hereof, or any delay in such performance could
result in loss to the Investors, and the Company agrees that, in addition to any
other liability the Company may have by reason of such failure or delay, the
Company shall be liable for all direct damages caused by any such failure or
delay, unless the same is the result of force majeure. Neither party shall be
liable for consequential damages.

                                       15

<PAGE>

     (k) This Agreement constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein. This Agreement supersedes all prior agreements and understandings among
the parties hereto with respect to the subject matter hereof. This Agreement may
be amended only by an instrument in writing signed by the party to be charged
with enforcement thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                  COMPANY:
                                  ZAPWORLD.COM

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

                                  Name:     Gary Starr
                                        ----------------------------------------
                                  Title:    Chief Executive Officer
                                         ---------------------------------------

                                  INITIAL INVESTOR:

                                  ----------------------------------------------
                                         [Print Name of Initial Investor]

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

                                       17

<PAGE>

                                   EXHIBIT 1

           Shares Permitted to Be Included in Registration Statement

                          Shares of
Shareholder Name         Common Stock     Owned/Description of Right to Acquire
----------------         ------------     -------------------------------------

Union Atlantic I,C         130,000        Warrants, to be issued on the Initial
or its designees                          Closing Date, with piggy back
                                          registration rights

Krieger & Prager LLP        20,000        Warrants, to be issued on the Initial
or its designees                          Closing Date, with piggy back
                                          registration rightsFORM OF WARRANT

          THESE SECURITIES (THE "SECURITIES") HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
          SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED
          FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
          STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR
          OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
          REGISTRATION IS NOT REQUIRED.

                                  ZAPWORLD.COM

                          COMMON STOCK PURCHASE WARRANT

     1.  Issuance; Certain Definitions. In consideration of good and valuable
consideration, the receipt of which is hereby acknowledged by ZAPWORLD.COM, a
California corporation (the "Company"), _________________ or registered assigns
(the "Holder") is hereby granted the right to purchase at any time until 5:00
P.M., New York City time, on _______________, 200__(1) (the "Expiration Date"),
______________ Thousand (__________)(2) fully paid and nonassessable

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

     (1) Insert date which is last day of month in which fifth anniversary of
the relevant Closing Date occurs.

     (2) Insert (x) the aggregate stated value of the Preferred Stock issued to
the Holder on the relevant Closing Date divided by (y) the Fixed Conversion
Price (as defined in Certificate of Determination).

<PAGE>

shares of the Company's Common Stock, no par value per share (the "Common
Stock") at an initial exercise price per share (the "Exercise Price") of
$________(3) per share, subject to further adjustment as set forth herein. This
Warrant is being issued pursuant to the terms of that certain Securities
Purchase Agreement, dated as of June ____, 2000 (the "Securities Purchase
Agreement"), to which the Company and Holder (or Holder's predecessor in
interest) are parties. Capitalized terms not otherwise defined herein shall have
the meanings ascribed to them in the Securities Purchase Agreement.

     2.  Exercise of Warrants.

         2.1   General. This Warrant is exercisable in whole or in part at any
time and from time to time. Such exercise shall be effectuated by submitting to
the Company (either by delivery to the Company or by facsimile transmission as
provided in Section 8 hereof) a completed and duly executed Notice of Exercise
(substantially in the form attached to this Warrant Certificate) as provided in
this paragraph. The date such Notice of Exercise is faxed to the Company shall
be the "Exercise Date," provided that the Holder of this Warrant tenders this
Warrant Certificate to the Company within five (5) business days thereafter. The
Notice of Exercise shall be executed by the Holder of this Warrant and shall
indicate the number of shares then being purchased pursuant to such exercise.
Upon surrender of this Warrant Certificate, together with appropriate payment of
the Exercise Price for the shares of Common Stock purchased, the Holder shall be
entitled to receive a certificate or certificates for the shares of Common Stock
so purchased. If the Notice of Exercise form elects a "cash" exercise, the
Exercise Price per share of Common Stock for the shares then being exercised
shall be payable in cash or by certified or official bank check. If the Notice
of Exercise form elects a "cashless" exercise, the Holder shall thereby be
entitled to receive a number of shares of Common Stock equal to (x) the excess
of the Current Market Value (as defined below) over the total cash exercise
price of the portion of the Warrant then being exercised, divided by (y) the
Market Price of the Common Stock as of the trading day immediately prior to the
Exercise Date. For the purposes of this Warrant, the terms (Q) "Current Market
Value" shall be an amount equal to the Market Price of the Common Stock as of
the trading day immediately prior to the Exercise Date, multiplied by the number
of shares of Common Stock specified in such Notice of Exercise Form, and (R)
"Market Price of the Common Stock" shall be the closing price of the Common
Stock as reported by Bloomberg, LP or, if not so reported, as reported by the
securities exchange or automated quotation system on which the Common Stock is
listed or on the over-the-counter market

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

     (3) Insert 110% of (i) for the Warrants issued on the Initial Closing Date,
the average Closing Bid Price for the five (5) trading days ending on the
trading day immediately before (x) June 23, 2000 or (y) the Initial Closing
Date, whichever is lower, and (ii) for the Warrants issued on the Additional
Closing Date, the average Closing Bid Price for the five (5) trading days ending
on the trading day immediately before the Additional Closing Date.

                                       2

<PAGE>

for the relevant date. The Holder shall be deemed to be the holder of the shares
issuable to it in accordance with the provisions of this Section 2.1 on the
Exercise Date.

         2.2   Limitation on Exercise. Notwithstanding the provisions of this
Warrant, the Securities Purchase Agreement or of the other Transaction
Agreements, in no event (except (i) as specifically provided in this Warrant as
an exception to this provision, (ii) while there is outstanding a tender offer
for any or all of the shares of the Company's Common Stock, or (iii) on at least
seventy-five (75) days' advance written notice from the Holder of its election
to cancel this Section 2.2) shall the Holder be entitled to exercise this
Warrant, or shall the Company have the obligation to issue shares upon such
exercise of all or any portion of this Warrant, to the extent that, after such
exercise the sum of (1) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unconverted portion of
the Preferred Stock or unexercised portion of the Warrants), and (2) the number
of shares of Common Stock issuable upon the exercise of the Warrants with
respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more than 9.99% of
the outstanding shares of Common Stock (after taking into account the shares to
be issued to the Holder upon such exercise). For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, except as otherwise provided in clause (1) of such sentence. The
Holder, by its acceptance of this Warrant, further agrees that if the Holder
transfers or assigns any of the Warrants to a party who or which would not be
considered such an affiliate, such assignment shall be made subject to the
transferee's or assignee's specific agreement to be bound by the provisions of
this Section 2.2 as if such transferee or assignee were the original Holder
hereof.

     3.  Reservation of Shares. The Company hereby agrees that at all times
during the term of this Warrant there shall be reserved for issuance upon
exercise of this Warrant such number of shares of its Common Stock as shall be
required for issuance upon exercise of this Warrant (the "Warrant Shares").

     4.  Mutilation or Loss of Warrant. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) receipt of reasonably
satisfactory indemnification and affidavit, and (in the case of mutilation) upon
surrender and cancellation of this Warrant, the Company will execute and deliver
a new Warrant of like tenor and date and any such lost, stolen, destroyed or
mutilated Warrant shall thereupon become void.

     5.  Rights of the Holder. The Holder shall not, by virtue hereof, be
entitled to any rights of a stockholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

                                       3

<PAGE>

     6.  Protection Against Dilution.

         6.1   Adjustment Mechanism. If an adjustment of the Exercise Price is
required pursuant to this Section 6, the Holder shall be entitled to purchase
such number of additional shares of Common Stock as will cause (i) the total
number of shares of Common Stock Holder is entitled to purchase pursuant to this
Warrant, multiplied by (ii) the adjusted Exercise Price per share, to equal
(iii) the dollar amount of the total number of shares of Common Stock which the
Holder is entitled to purchase before adjustment, multiplied by the total
Exercise Price before adjustment.

         6.2   Capital Adjustments. In case of any stock split or reverse stock
split, stock dividend, reclassification of the Common Stock, recapitalization,
merger or consolidation, or like capital adjustment affecting the Common Stock
of the Company, the provisions of this Section 6 shall be applied as if such
capital adjustment event had occurred immediately prior to the date of this
Warrant and the original Exercise Price had been fairly allocated to the stock
resulting from such capital adjustment; and in other respects the provisions of
this Section shall be applied in a fair, equitable and reasonable manner so as
to give effect, as nearly as may be, to the purposes hereof. A rights offering
to stockholders shall be deemed a stock dividend to the extent of the bargain
purchase element of the rights.

         6.3   Adjustment for Spin Off. If, for any reason, prior to the
exercise of this Warrant in full, the Company spins off or otherwise divests
itself of a part of its business or operations or disposes of all or a part of
its assets in a transaction (the "Spin Off") in which the Company does not
receive compensation for such business, operations or assets, but causes
securities of another entity (the "Spin Off Securities") to be issued to
security holders of the Company, then

               (a) the Company shall cause (i) to be reserved Spin Off
     Securities equal to the number thereof which would have been issued to the
     Holder had all of the Holder's unexercised Warrants outstanding on the
     record date (the "Record Date") for determining the amount and number of
     Spin Off Securities to be issued to security holders of the Company (the
     "Outstanding Warrants") been exercised as of the close of business on the
     trading day immediately before the Record Date (the "Reserved Spin Off
     Shares"), and (ii) to be issued to the Holder on the exercise of all or any
     of the Outstanding Warrants, such amount of the Reserved Spin Off Shares
     equal to (x) the Reserved Spin Off Shares multiplied by (y) a fraction, of
     which (I) the numerator is the amount of the Outstanding Warrants then
     being exercised, and (II) the denominator is the amount of the Outstanding
     Warrants; and

               (b) the Exercise Price on the Outstanding Warrants shall be
     adjusted immediately after consummation of the Spin Off by multiplying the
     Exercise Price by a fraction (if, but only if, such fraction is less than
     1.0), the numerator of which is the Average Market Price

                                       4

<PAGE>

     of the Common Stock (as defined below) for the five (5) trading days
     immediately following the fifth trading day after the Record Date, and the
     denominator of which is the Average Market Price of the Common Stock on the
     five (5) trading days immediately preceding the Record Date; and such
     adjusted Exercise Price shall be deemed to be the Exercise Price with
     respect to the Outstanding Warrants after the Record Date. As used herein,
     the term "Average Market Price of the Common Stock" means the average
     closing bid price of a share of Common Stock, as reported by Bloomberg, LP
     or, if not so reported, as reported on the over-the-counter market for the
     relevant period.

     7.  Transfer to Comply with the Securities Act; Registration Rights.

         7.1   Transfer. This Warrant has not been registered under the
Securities Act of 1933, as amended, (the "Act") and has been issued to the
Holder for investment and not with a view to the distribution of either the
Warrant or the Warrant Shares. Neither this Warrant nor any of the Warrant
Shares or any other security issued or issuable upon exercise of this Warrant
may be sold, transferred, pledged or hypothecated in the absence of an effective
registration statement under the Act relating to such security or an opinion of
counsel satisfactory to the Company that registration is not required under the
Act. Each certificate for the Warrant, the Warrant Shares and any other security
issued or issuable upon exercise of this Warrant shall contain a legend on the
face thereof, in form and substance satisfactory to counsel for the Company,
setting forth the restrictions on transfer contained in this Section.

         7.2   Registration Rights.

               (a) Reference is made to the Registration Rights Agreement. The
     Company's obligations under the Registration Rights Agreement and the other
     terms and conditions thereof with respect to the Warrant Shares, including,
     but not necessarily limited to, the Company's commitment to file a
     registration statement including the Warrant Shares, to have the
     registration of the Warrant Shares completed and effective, and to maintain
     such registration, are incorporated herein by reference.

               (b) In addition to the registration rights referred to in the
     preceding provisions of Section 7.2(a), effective after the expiration of
     the effectiveness of the Registration Statement as contemplated by the
     Registration Rights Agreement, the Holder shall have piggy-back
     registration rights with respect to the Warrant Shares then held by the
     Holder or then subject to issuance upon exercise of this Warrant
     (collectively, the "Remaining Warrant Shares"), subject to the conditions
     set forth below. If, at any time after the Registration Statement has
     ceased to be effective, the Company participates (whether voluntarily or by
     reason of an obligation to a third party) in the registration of any shares
     of the Company's stock (other than a registration on Form S-8), the Company
     shall give written notice thereof to the Holder and the Holder shall have
     the right, exercisable within ten (10) business days after receipt of such
     notice, to demand inclusion of all or a portion of the Holder's Remaining
     Warrant Shares in such registration statement. If the Holder exercises such
     election, the Remaining Warrant Shares so designated shall be included in
     the

                                       5

<PAGE>

     registration statement at no cost or expense to the Holder (other than any
     costs or commissions which would be borne by the Holder under the terms of
     the Registration Rights Agreement). The Holder's rights under this Section
     7 shall expire at such time as the Holder can sell all of the Remaining
     Warrant Shares under Rule 144 without volume or other restrictions or
     limit.

     8.  Notices. Any notice or other communication required or permitted
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage pre-paid. Any such notice shall be deemed given when so
delivered personally, telegraphed, telexed or sent by facsimile transmission,
or, if mailed, two days after the date of deposit in the United States mails, as
follows:

                   (i)   if to the Company, to:

                         Zapworld.com
                         117 Morris Street
                         Sebastopol, CA 95472
                         Attn: Gary Starr
                         Telephone No.: (707) 824-4150
                         Telecopier No.: (707) 824-4159

                         with a copy to:

                         Evers & Hendrickson LLP
                         155 Montgomery Street
                         12th Floor
                         San Francisco, California 94101
                         Attn:.  William D. Evers, Esq.
                         Telephone No.: (415) 772-8102
                         Telecopier No.: (415) 772-8101

                   (ii)  if to the Holder, to:

                         ATTN:
                         Telephone No.:  (   )     -
                         Telecopier No.: (   )     -

                         with a copy to:

                                       6

<PAGE>

                         Krieger & Prager LLP
                         39 Broadway
                         Suite 1440
                         New York, NY 10006
                         Attn: Samuel Krieger, Esq.
                         Telephone No.: (212) 363-2900
                         Telecopier No.  (212) 363-2999

Any party may be notice given in accordance with this Section to the other
parties designate another address or person for receipt of notices hereunder.

     9.  Supplements and Amendments; Whole Agreement. This Warrant may be
amended or supplemented only by an instrument in writing signed by the parties
hereto. This Warrant contains the full understanding of the parties hereto with
respect to the subject matter hereof and thereof and there are no
representations, warranties, agreements or understandings other than expressly
contained herein and therein.

     10. Governing Law. This Warrant shall be deemed to be a contract made under
the laws of the State of New York for contracts to be wholly performed in such
state and without giving effect to the principles thereof regarding the conflict
of laws. Each of the parties consents to the jurisdiction of the federal courts
whose districts encompass any part of the City of New York or the state courts
of the State of New York sitting in the City of New York in connection with any
dispute arising 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 jurisdictions. To the
extent determined by such court, the Company shall reimburse the Holder for any
reasonable legal fees and disbursements incurred by the Holder in enforcement of
or protection of any of its rights under any of the Transaction Agreements.

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

     12. Descriptive Headings. Descriptive headings of the several Sections of
this Warrant are inserted for convenience only and shall not control or affect
the meaning or construction of any of the provisions hereof.

     IN WITNESS WHEREOF, the parties hereto have executed this Warrant as of the
th day of                  , 2000.
          -----------------

                         ZAPWORLD.COM

                         By:
                             ---------------------------------------------------
                             Name:  Gary Starr
                                   ---------------------------------------------
                             Its:   Chief Executive Officer
                                  ----------------------------------------------

Attest:

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

                                       7

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT

     The undersigned hereby irrevocably elects to exercise the right,
represented by the Warrant Certificate dated as of ______________, ________, to
purchase ________ shares of the Common Stock, no par value per share, of
ZAPWORLD.COM and tenders herewith payment in accordance with Section 1 of said
Common Stock Purchase Warrant.

     Please deliver the stock certificate to:

Dated:
       -------------------------------------------

--------------------------------------------------
[Name of Holder]

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

[ ]   CASH:  $
              ------------------------------------

[ ]   CASHLESS EXERCISE

                                       8

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