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                                                                     EXHIBIT 4.2

                             SHAREHOLDERS AGREEMENT
                                       OF
                            GERIMED OF AMERICA, INC.
                             A COLORADO CORPORATION

         THIS SHAREHOLDERS AGREEMENT (this "Agreement") is made as of December
23, 1997 by and between GERIMED OF AMERICA, INC., a Colorado corporation (the
"Corporation"), JAMES F. RIOPELLE, a resident of the State of Colorado
("Riopelle") and SPECTRUM HEALTHCARE SERVICES, INC., a Delaware corporation
("Spectrum"). Riopelle and Spectrum are hereinafter separately referred to as
"Shareholder" and collectively referred to as "Shareholders."

                                    RECITALS

         A. Riopelle owns 3,382,500 shares of the common stock, $.0001 par
value, of the Corporation (the "Common Stock") which as of the date hereof
constitutes 64.6% of the issued and outstanding capital stock of the Corporation
(the "Founder's Stock").

         B. Pursuant to that certain Securities Purchase Agreement dated
December 22, 1997 between the Corporation and Spectrum (the "Purchase
Agreement"), Spectrum acquired 906,891 shares of Series A Convertible Preferred
Stock, $.0001 par value, of the Corporation ("Preferred Stock") and certain
rights to acquire additional shares of capital stock of the Corporation (such
shares, rights and shares acquired upon exercise of such rights, held by
Spectrum are hereinafter collectively referred to as the "Spectrum Stock").

         C. The Corporation and the Shareholders desire to enter into this
Agreement to provide for certain rights and restrictions with respect to the
Founder's Stock and the Spectrum Stock (collectively, together with any other
capital stock of the Corporation and rights to acquire capital stock of the
Corporation acquired by either Shareholder, the "GeriMed Stock") for the
purposes, among others, of: (i) establishing the composition of the board of
directors of the Corporation; (ii) limiting the manner and terms by which the
GeriMed Stock may be transferred, and (iii) granting the Shareholders certain
rights to buy and sell GeriMed Stock.

         D. The Corporation and the Shareholders desire to enter into this
Agreement knowing that it is in the Corporation's best interest and fair to each
of the Shareholders.

                                    AGREEMENT

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

         1. NO ENCUMBRANCE. During the term of this Agreement, no Shareholder
shall pledge, hypothecate or otherwise encumber any of the GeriMed Stock or
contract to pledge, hypothecate or encumber such shares. Any attempted pledge,
hypothecation or encumbrance of

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GeriMed Stock by a Shareholder shall be void and of no force and effect, except
as permitted by paragraph 5 of this Agreement.

         2. RESTRICTIONS ON TRANSFER OF GERIMED STOCK.

            (a) Transfer of GeriMed Stock. No Shareholder shall sell for value
         (a "Sale") any GeriMed Stock or interest therein, except pursuant to
         the provisions of this paragraphs 2, 3 or 5 below.

            (b) Right of First Refusal.

                (i) At least thirty (30) days prior to making any Sale of any
            GeriMed Stock (the "Election Period"), a Shareholder desiring to
            sell GeriMed Stock (the "Transferring Shareholder") shall deliver a
            written notice (the "Transfer Notice") to the Corporation and the
            other Shareholder (the "Other Shareholder").

                (ii) The Transfer Notice shall (1) disclose in reasonable detail
            the proposed terms and conditions of the Sale, including, but not
            limited to, the proposed transferee, the consideration to be paid
            and the method of payment for the GeriMed Stock and (2) be
            accompanied by a written bona fide offer from the proposed
            transferee.

                (iii) During the Election Period, the Other Shareholder may
            elect (A) to purchase all, but not less than all, of the GeriMed
            Stock specified in the Transfer Notice by delivering a written
            notice of election (an "Election Notice") to the Transferring
            Shareholder, or (B) if applicable, to exercise his or its rights
            under paragraph 4 below.

                (iv) If prior to the expiration of the Election Period, the
            Other Shareholder has not elected to purchase all of the GeriMed
            Stock which the Transferring Shareholder proposes to sell or if the
            Other Shareholder fails to give the Transferring Shareholder written
            notice within the Election Period, the Other Shareholder will be
            deemed to have waived its election rights and the Transferring
            Shareholder may sell such GeriMed Stock within ninety (90) days
            after expiration of the Election Period, on terms no more favorable
            than those terms specified in the Transfer Notice. If a sale of such
            GeriMed Stock is not consummated within ninety (90) days after
            expiration of the Election Period, such GeriMed Stock shall again be
            subject to the provisions of this paragraph 2.

                (v) Subject to subparagraph (iv) above, if the Other Shareholder
            elects to purchase all of the GeriMed Stock from the Transferring
            Shareholder: (1) the Other Shareholder shall purchase the GeriMed
            Stock covered by the Transfer Notice at the price, and on the terms
            specified in the Transfer Notice and (2) the transfer of GeriMed
            Stock shall be consummated as soon as practical after delivery of
            Election Notice, but in any event within thirty (30) days after the
            expiration of the Election Period.

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         3. PURCHASE OF SHAREHOLDER'S SHARES.

            (a) Involuntary Transfers.

                (i) If the GeriMed Stock held by either Shareholder shall be
            levied upon, sequestered, administered by a receiver or a trustee in
            bankruptcy, or transferred in any other involuntary transfer, or
            otherwise transferred by operation of law, the Shareholder shall
            give the Corporation prompt written notice of such occurrence.

                (ii) The Corporation shall have, for a period of thirty (30)
            days after receipt of the written notice, the right to elect to
            purchase all (but not less than all) of such Shareholder's GeriMed
            Stock at a purchase price equal to the Fair Market Value (as defined
            by subparagraph 3(c) below) of such GeriMed Stock as of the date of
            the event giving rise to the Corporation's rights under this
            subparagraph 3(a) and on the terms provided herein. Such right shall
            apply even though the GeriMed Stock may actually have been sold at
            the time of exercise thereof. The Corporation may exercise its right
            to purchase such GeriMed Stock by giving the Shareholder, bankruptcy
            trustee, or other individual or entity then having legal title to
            the GeriMed Stock (the "Title Holder") written notice of its
            election to purchase such GeriMed Stock (the "Purchase Notice"). Any
            GeriMed Stock which the Corporation does not elect to purchase
            within the 30-day period may be transferred by the Title Holder;
            provided that any GeriMed Stock transferred and any subsequent
            transferee shall continue to be subject to all of the provisions of
            this Agreement, including this subparagraph 3(a).

            (b) Purchase Terms.

                (i) The purchase and sale of GeriMed Stock under this paragraph
            3 shall be closed within thirty (30) days after the determination of
            such GeriMed Stock's Fair Market Value.

                (ii) Payment for the GeriMed Stock purchased under this
            paragraph 3 shall be made as follows: 10% cash at time of closing,
            and, the remaining 90% pursuant to a ten (10) year note, executed by
            the Corporation, which shall be payable in ten (10) equal
            installments of principal, plus interest at the publicly announced
            prime rate of Norwest Bank Denver, N.A. ("Prime"), adjusted on the
            first day of each month.

            (c) "Fair Market Value" shall mean the value assigned by the
         following process to a Shareholder's GeriMed Stock:

                (i) Where the Corporation elects to purchase GeriMed Stock under
            this subparagraph 3, the Corporation shall include in its Purchase
            Notice the Corporation's determination of the fair market value of
            the GeriMed Stock elected to be purchased (the "Valuation").

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                (ii) If the Title Holder accepts the Valuation or fails to
            either (1) object to such Valuation within the 10-day period set
            forth below or (2) deliver the Title Holder's Valuation (as defined
            below) to the Corporation within the 30-day period set forth below,
            the Valuation shall be deemed to be the "Fair Market Value" for
            purposes of the applicable transaction.

                (iii) If the Title Holder disagrees with the Valuation, such
            Title Holder shall deliver a written notice of objection to the
            Corporation within ten (10) days after the date of delivery of the
            Valuation to the Title Holder and shall, within thirty (30) days
            after delivery of such Valuation, deliver to the Corporation written
            notice of the Title Holder's determination of the fair market value
            of the GeriMed Stock covered by the Purchase Notice (the "Title
            Holder's Valuation"). If the Corporation accepts the Title Holder's
            Valuation, fails to deliver written notice of objection to such
            value to the Corporation within the required 10-day period or fails
            to contact JAG (as defined below) within the required 10-day period
            set forth in subparagraph (iv) below, the Title Holder's Valuation
            shall be deemed to be the "Fair Market Value" for purposes of the
            applicable transaction.

                (iv) If the Corporation disagrees with the Title Holder's
            Valuation, the Corporation shall give the Title Holder written
            notice of objection within ten (10) days after the date the Title
            Holder's Valuation is delivered to the Corporation. Within ten (10)
            days after delivery of the notice of objection to the Title Holder's
            Valuation, the Corporation shall ask the Judicial Arbiter Group,
            Inc. of Denver, Colorado ("JAG") to select a certified public
            accounting firm with experience in valuing healthcare-related
            businesses (the "Appraiser"). The Appraiser shall determine what in
            its opinion is the fair market value of the Corporation's assets
            (the "Asset Value"). The Asset Value shall be divided by the number
            of outstanding shares of all classes of capital stock of the
            Corporation to arrive at a per share valuation (the "Appraised
            Value"). The "Fair Market Value" for the applicable transaction
            shall then be deemed to be either the Valuation or the Title
            Holder's Valuation, whichever is closest to the Appraised Value. The
            decision of the Appraiser shall be binding upon the Corporation and
            the Title Holder who shall each pay one-half (1/2) of the cost of
            the fees charged by JAG and the Appraiser.

         4. RIGHT OF CO-SALE.

            (a) The Right. Subject to paragraph 2(b) above, if at any time a
         Transferring Shareholder who owns a majority of the issued and
         outstanding capital stock of the Company (on a fully diluted basis
         assuming the exercise of all options which have an exercise price which
         is less than the proposed sales price under this paragraph 4), warrants
         and other rights and conversion of all convertible securities) proposes
         to sell shares of GeriMed Stock pursuant to a bona fide offer from a
         party or parties other than the Other Shareholder, then the Other
         Shareholder shall be entitled to notify the Transferring Shareholder in
         writing within thirty (30) days after receipt of the notification of
         such proposed Sale that the Transferring Shareholder elects to sell a
         pro rata portion of GeriMed Stock which the Transferring Shareholder
         proposes to sell to such third party;

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         whereupon the Transferring Shareholder shall assign so much of his
         interest in the agreement of Sale as is proportionate to the Other
         Shareholder's participation in the sale of such GeriMed Stock and the
         Other Shareholder shall assume such part of the obligations of the
         Transferring Shareholder under such agreement. For the purposes of this
         paragraph 4 the "pro rata portion" which the Other Shareholder shall be
         entitled to sell shall be an amount of Common Stock (assuming the
         exercise of all warrants, then exercisable and conversion of all
         convertible securities to Common Stock) proposed to be sold, the
         numerator of which is the aggregate of all shares of Common Stock then
         held by the Other Shareholder and the denominator is the aggregate of
         all shares of GeriMed Stock then held by the Other Shareholder and the
         Transferring Shareholder. The Other Shareholder shall notify the
         Transferring Shareholder whether it elects to sell an amount equal to
         or less than its pro rata share of the Common Stock so offered. The
         Other Shareholder shall be entitled to apportion Common Stock to be
         sold among its partners, affiliates and relatives, provided that the
         Other Shareholder notifies the Transferring Shareholder of such
         allocation.

            (b) Failure to Notify. If within thirty (30) days after the
         Transferring Shareholder gives the aforesaid notice to the Other
         Shareholder, the Other Shareholder does not notify the Transferring
         Shareholder that it desires to sell its pro rata portion of the Common
         Stock described in such notice at the price and on the terms and
         conditions set forth therein, then the Transferring Shareholder may
         sell during the 90-day period after the Transferring Shareholder gives
         the aforesaid notice to the Other Shareholder (the "Period") such
         Common Stock as to which the Other Shareholder does not indicate a
         desire to sell to other persons at the same price and upon the same
         terms and conditions as those set forth in the notice. In the event the
         Transferring Shareholder has not sold the Common Stock or entered into
         an agreement to sell the Common Stock within the Period, the
         Transferring Shareholder shall not thereafter sell any Common Stock
         without first notifying the Other Shareholder in the manner provided
         above.

         5. LIMITATIONS TO RIGHT OF FIRST REFUSAL AND RIGHT OF CO-SALE. Without
regard and not subject to the provisions of paragraphs 2 and 4.

            (a) Riopelle may sell or otherwise assign for consideration or gift
         GeriMed Stock to any or all of his ancestors, descendants, spouse, or
         to a custodian, trustee (including a trustee of a voting trust),
         executor, or other fiduciary for the account of a trust for the benefit
         of his ancestors, descendants or spouse, provided that each such
         transferee or assignee, prior to the completion of the sale, transfer,
         gift or assignment, shall have executed documents assuming the
         obligations of such Shareholder under this Agreement with respect to
         the transferred securities; and

            (b) Spectrum may contribute, distribute, sell or otherwise assign,
         with or without consideration, (a) all of its GeriMed Stock to any
         entity controlling, controlled by or under common control with Spectrum
         (a "Spectrum Affiliate"), and (b) if Spectrum owns of record more than
         fifty percent or more of the outstanding common stock of the
         Corporation, any portion of its GeriMed Stock to one or more Spectrum
         Affiliates; provided in each case any recipient Spectrum Affiliate
         shall have executed documents assuming the obligations of Spectrum
         hereunder with respect to the transferred securities.

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            (c) Each Shareholder may sell or transfer GeriMed Stock in a public
         offering of securities of the Company registered under the Securities
         Act of 1933, as amended (the "1933 Act").

         6. CALL OPTION. The Company hereby grants to Spectrum the right and
option to purchase from the Company, that number of shares of common stock of
the Company equal to Three Million Two Hundred Fifty-Five Thousand (3,255,000)
shares, less that number of shares tendered by the shareholders of the Company
and Riopelle under subparagraphs 6 (a) and 6(b), respectively (the "Call
Option"), such Call Option to be exercisable by written notice from Spectrum to
the Company and Riopelle at any time within the ninety (90) day period preceding
a Semiannual Exercise Date (the "Notice of Exercise"). The term "Semiannual
Exercise Date" means any one of the dates which are, respectively, 30, 36, 42,
48, 54 and 60 months after January 1, 1998. The aggregate purchase price for
each of such shares shall be an amount equal to the EBIT Value (as defined
below) of the Company as of the last day of the calendar month preceding the
month in which notice of exercise of the Call Option is delivered (the
"Valuation Date"), divided by the number of outstanding common shares of the
Company as of the closing of the purchase and sale of shares pursuant to the
Call Option, expressed on a fully diluted basis as if all options, warrants and
other rights then currently exercisable (except Spectrum's right to make the
Additional Investment (as defined in the Purchase Agreement) if such right has
not been exercised as of the Valuation Date) had been exercised and all
convertible securities converted; provided, however, if the Share Price
calculation above results in a Share Price which is lower than the exercise
price of any outstanding options, the Share Price shall be recalculated
excluding the shares underlying such options from the number of outstanding
shares, and the recalculated price shall be the "Share Price." The term "EBIT
Value" shall mean the amount resulting from the following formula:

         (2/3 times EBIT for the twelve month period ending on the Valuation
         Date times 11), plus (1/3 times the target EBIT set forth in the
         Company's annual forecast approved by the Board of Directors for the
         year in which the Valuation Date occurs times 7), minus
         interest-bearing debt of the Company (including capital leases), plus
         cash and cash equivalents owned by the Company.

The "EBIT" of the Company for any period shall mean the Company's net income for
such period plus (i) all interest expense incurred by the Company during such
period, plus (ii) all income and franchise tax expense incurred by the Company
during such period, and disregarding all extraordinary gains and losses outside
of the ordinary course of the Company's business. The net income of the Company
for any period shall be determined in accordance with generally accepted
accounting principles, consistently applied. The closing of the purchase and
sale of shares pursuant to the Call Option ("Option Closing") shall be the
business day designated by Spectrum that is not less than 120 days after notice
of exercise of the Call Option, at which time (a) the Company shall deliver to
Spectrum original certificates evidencing the shares being purchased, and (b)
Spectrum shall deliver to the Company the purchase price for the shares
purchased pursuant to the Call Option. The number of shares which are the
subject of the Call Option shall be equitably adjusted for any intervening stock
splits, reverse stock splits, subdivisions, reclassifications and similar
capital transactions after the date of this Agreement and prior to the purchase
pursuant to the exercise of the Call Option.

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            (a) Tender Offer. Upon delivery of the Notice of Exercise, the
         Company, Riopelle and Spectrum shall use their reasonable efforts to
         solicit the shareholders of the Company (excluding Spectrum) to tender
         their outstanding shares of the Common Stock for sale to Spectrum at
         the Option Closing for a price equal to the Share Price. Spectrum shall
         purchase all of such shares of Common Stock which are tendered by the
         shareholders of the Company.

            (b) If and to the extent the shareholders of the Company fail to
         tender in the aggregate 3,255,000 shares of Common Stock (the "Minimum
         Shares"), Riopelle shall tender (and/or cause his permitted transferees
         to tender) such number of Founders Stock as necessary to meet the
         Minimum Shares, provided, however, that in no case shall Riopelle be
         required to tender more than 2,536,875 shares of Founders Stock.
         Notwithstanding the foregoing, Riopelle may, in his sole discretion,
         tender more than 2,536,875 shares of Founders Stock under subparagraph
         (a) above. Riopelle shall not sell or otherwise transfer the Founder's
         Stock that is subject to this subparagraph 6(b), unless the transferee
         of such shares agrees that the shares shall continue to be subject to
         this subparagraph 6(b).

            (c) Closing of the Tender Offer. The closing of the sale of the
         Tendered Shares shall take place no later than 120 days after notice of
         exercise of the Call Option is delivered to the Company and, if
         applicable, shall close immediately prior to the closing of the Call
         Option.

         7. SHAREHOLDERS' REDEMPTION RIGHTS.

            (a) Spectrum's Redemption Right. If after five (5) years following
         the date of this Agreement, Spectrum owns less than fifty-one percent
         (51%) of the issued and outstanding Common Stock (assuming conversion
         of all of the Spectrum Stock), Spectrum may, in its sole and absolute
         discretion, elect to cause the Company to repurchase all or any part of
         the Spectrum Stock by giving written notice to the Company during the
         one-year period commencing on the fifth anniversary of this Agreement.
         The purchase price shall be calculated and paid as set forth in
         subparagraph (c) below. If the Company does not have legally available
         funds to purchase the Spectrum Stock, the Company may postpone such
         purchase until and as funds are legally available for such purpose.

            (b) Riopelle Redemption Right. If after five (5) years following the
         date of this Agreement, Spectrum and/or its affiliates own more than
         fifty percent (50%) of the issued and outstanding Common Stock
         (assuming conversion of all of the Spectrum Stock), Riopelle may, in
         his sole and absolute discretion, elect to cause the Company to
         repurchase all or part of the Founder's Stock by giving written notice
         to the Company during such one-year period. The purchase price shall be
         calculated and paid as set forth in subparagraph (c) below. If the
         Company does not have legally available funds to purchase the Founder's
         Stock, the Company may postpone such purchase until and as funds are
         legally available for such purpose.

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            (c) Purchase Price. The per share purchase price for any shares
         purchased by the Company under this paragraph 7 shall be equal to the
         Share Price as of the last day of the calendar month preceding the
         month in which the written notice was delivered under subparagraphs (a)
         or (b) above (the "Election Notice"). The closing of a repurchase under
         this paragraph 7 shall occur as soon as possible after delivery of the
         Election Notice, but in no case later than ninety (90) days after
         delivery of the Election Notice, unless postponed due to lack of
         legally available funds. If such closing is postponed, the purchase
         price shall be increased by a percentage equal to Prime, plus 2% per
         annum until such purchase is closed.

         8. RIOPELLE MINORITY SHAREHOLDER RIGHTS. If and when Spectrum owns at
least 50% of the outstanding Common Stock (assuming conversion of all
outstanding Preferred Stock), the Company shall comply with the following
provisions:

            (a) Insurance. The Company will maintain insurance coverage by
         financially sound and reputable insurers in such forms, against such
         risks and with limits of coverage at least equal to existing limits, as
         are currently maintained by the Company.

            (b) Financial Statements. The Company shall deliver to Riopelle:

                (i) Within thirty (30) days after the end of each month, an
            unaudited balance sheet and income statement for such month;

                (ii) Within one-hundred (120) days after the end of each fiscal
            year of the Company an income statement for such fiscal year, a
            balance sheet of the Company as of the end of such year and a
            statement of cash flows for such year, together with such notes
            thereto as are appropriate, prepared in accordance with generally
            accepted accounting principles consistently applied and setting
            forth in each case in comparative form the figures for the previous
            year, all in reasonable detail and certified by independent public
            accountants of recognized national standing selected by the Company
            and reasonably acceptable to Riopelle.

                (iii) As soon as available, but in any event within ninety (90)
            days after commencement of each new fiscal year, a business plan,
            projected financial statements and cash flow projections for such
            fiscal year as set forth in the Company's operating plan as approved
            by the Company's Board of Directors, along with a capital
            expenditures budget; and

                (iv) Such other financial statements as Riopelle may reasonably
            request to verify the financial condition of the Company and the
            valuation of Riopelle's investment therein. All such statements
            shall be certified by the Chief Financial Officers of the Company as
            being true, complete and in accordance with the Company's books and
            records and regular accounting practices.

            (c) Inspection. The Company shall permit Riopelle and his authorized
         designees to visit and inspect the Company's properties, to examine the
         Company's books of account and records and to discuss the Company's
         affairs, finances and accounts with its employees, officers and
         independent accountants, all at such reasonable times as

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         may be requested by Riopelle (but limited to two examinations in any
         calendar year) and upon reasonable advance notice given to the Company
         but in no case more than two times in any calendar year.

            (d) Extraordinary Corporate Acts. Unless the Company first obtains
         the written consent of Riopelle, the Company shall not effect any
         amendment to the Company's articles of incorporation, recapitalization,
         merger or consolidation of the Company, unless such action affects the
         Common Stock and the Preferred Stock in an identical manner.

         9. TRANSFERS IN VIOLATION OF AGREEMENT. Any transfer or attempted
transfer of any GeriMed Stock in violation of any provision of this Agreement
shall be void, and the Corporation shall not record such transfer on its books
or treat any purported transferee of such GeriMed Stock as the owner of such
shares for any purpose.

         10. LEGEND. Each certificate evidencing GeriMed Stock and each
certificate issued in exchange for or upon the transfer of any GeriMed Stock (if
such shares remain subject to this Agreement) shall be stamped or otherwise
imprinted with a legend in substantially the following form:

                  The shares represented by this Certificate and the transfer
                  thereof are subject to certain restrictions, call option, and
                  agreements set forth in the Shareholders Agreement dated as of
                  December 23, 1997 by and among GeriMed of America, Inc. (the
                  "Corporation"), James F. Riopelle and Spectrum Healthcare
                  Services, Inc., a copy of which is on file with the Secretary
                  of the Corporation.

         11. TRANSFER. Prior to transferring any GeriMed Stock to any person or
entity, the transferring Shareholder shall cause the prospective transferee to
execute and deliver to the Corporation and the Other Shareholder a counterpart
of this Agreement.

         12. BOARD OF DIRECTORS. Each Shareholder of the Corporation shall vote
all of its voting securities of the Corporation over which it has voting
control, and shall take all other actions reasonably requested by the other
Shareholder (whether in the Shareholder's capacity as a shareholder, director or
officer of the Corporation or otherwise), (a) to nominate and elect one designee
of the other Shareholder to the Board of Directors of the Corporation and any
subsidiary of the Corporation, and, in the case of Spectrum's designee, a member
to the Corporation's compensation committee, (b) following the death,
resignation, removal or other inability of such designee to serve, to nominate
and elect a successor designated by the other Shareholder, and (c) upon written
request of the other Shareholder, to remove its designee and replace him or her
with a successor designated by other Shareholder. Except with the prior written
consent of the other Shareholder, each Shareholder shall vote all voting
securities of the Corporation over which he has voting control against any
resolution to remove the director designated by the other Shareholder.
Notwithstanding the foregoing, neither Shareholder shall be required to vote in
favor of a designee (a) described in Section 230.262(b) of Regulation A
promulgated under the 1933 Act, (b) who has been convicted of a crime involving
moral

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turpitude or (c) who such Shareholder reasonably believes would have a negative
impact on the reputation and business of the Corporation.

         13. TERM. This Agreement shall terminate upon the occurrence of any of
the following events:

             (a) Cessation of the Corporation's business;

             (b) The bankruptcy, receivership or dissolution of the Corporation;

             (c) At such time as either Shareholder owns less than five percent
         (5%) of the issued and outstanding capital stock of the Corporation;

             (d) Mutual written agreement of the Shareholders;

             (e) The date on which any registration of GeriMed Stock under the
         1933 Act becomes effective.

         14. AMENDMENT AND WAIVER. Except as otherwise provided herein, no
modification, amendment or waiver of any provisions of this Agreement shall be
effective against the Corporation or the Shareholders unless such modification,
amendment or waiver is approved in writing by the Corporation and the
Shareholders. The failure of any party to enforce any of the provisions of this
Agreement shall in no way be construed as a waiver of such provisions and shall
not affect the right of such party thereafter to enforce each and every
provision of this Agreement in accordance with its terms.

         15. SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement 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
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

         16. ENTIRE AGREEMENT. Except as otherwise expressly set forth herein,
this document embodies the complete agreement and understanding among the
parties hereto with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in
any way.

         17. SUCCESSORS AND ASSIGNS. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Corporation and its successors and assigns and the Shareholders and any
subsequent holders of GeriMed Stock and the respective successors and assigns of
each of them, so long as they hold GeriMed Stock.

         18. COUNTERPARTS. This Agreement may be executed in separate
counterparts each of which shall be an original and all of which taken together
shall constitute one and the same

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agreement. Signatures on behalf of the parties that are transmitted by facsimile
shall be treated as original and binding signatures for all purposes.

         19. REMEDIES. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that the Corporation and any Shareholder may in its sole
discretion apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive relief (without posting a bond or other
security) in order to enforce or prevent any violation of the provisions of this
Agreement, in addition to seeking damages for breach of this Agreement.

         20. NOTICES. Any notice provided for in this Agreement shall be in
writing and shall be either personally delivered, or mailed first class mail
(postage prepaid) or sent by reputable overnight courier service (charge
prepaid) to the Corporation at the address set forth below and to any other
recipient at such address as indicated by the Corporation's records, or to the
attention of such other person as the recipient party has specified by prior
written notice to the sending party. Notices will be deemed to have been
delivered hereunder when delivered personally, three (3) days after deposit in
the U.S. mail and one (1) day after deposit with a reputable overnight courier
service. The Corporation's address is:

                           GeriMed of America, Inc.
                           333 West Hampden Avenue, Suite 200
                           Englewood, Colorado  80110

         21. GOVERNING LAW. This Agreement and the rights of the parties hereto
shall be governed by and construed and enforced in accordance with the laws of
the State of Colorado.

         22. DESCRIPTIVE HEADINGS. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

         23. GENDER. Whenever applicable, the pronouns designating the
"masculine" or the "neuter" shall equally apply to "feminine," "neuter" and
"masculine" genders. Furthermore, whenever applicable in this Agreement, the
"singular" shall include the "plural" and the reverse.

             IN WITNESS WHEREOF, the parties hereto have executed this Agreement
on the day and year first above written.

                                  "CORPORATION"

                                  GERIMED OF AMERICA, INC.,
                                  a Colorado corporation

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

                                       11
<PAGE>   12

                                 "SHAREHOLDERS"

                                 "RIOPELLE"

                                 -----------------------------------------------
                                 James F. Riopelle, individually

                                 "SPECTRUM"

                                 SPECTRUM HEALTHCARE SERVICES, INC.
                                 a Delaware corporation

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

                                       12<PAGE>   1

                                                                     EXHIBIT 4.3

         NEITHER THIS WARRANT NOR THE SERIES A CONVERTIBLE PREFERRED STOCK
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED PURSUANT TO THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW. NEITHER THIS WARRANT NOR
ANY OF THE UNDERLYING SERIES A CONVERTIBLE PREFERRED STOCK MAY BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED AND QUALIFIED
IN ACCORDANCE WITH SAID ACT AND ANY APPLICABLE STATE SECURITIES LAW, OR IN THE
OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH REGISTRATION AND
QUALIFICATION ARE NOT REQUIRED.

797,001 Shares of Series A Convertible Preferred Stock Warrant No. 1

                                     WARRANT

         to Purchase 797,001 Shares of Series A Convertible Preferred Stock of

                            GERIMED OF AMERICA, INC.

         THIS CERTIFIES THAT, for value received, SPECTRUM HEALTHCARE SERVICES,
INC. or registered assigns is entitled, subject to the terms and conditions set
forth herein, to purchase from GERIMED OF AMERICA INC., a corporation organized
and existing under the laws of the State of Colorado (the "Company"), at any
time on or before 5:00 P.M. St. Louis. Missouri time on the Final Exercise Date,
Seven Hundred Ninety-Seven Thousand One (797,001) shares of Series A Convertible
Preferred Stock of the Company for $0.0001 per share in lawful money of the
United States of America. The number of shares of Series A Convertible Preferred
Stock which may be purchased hereunder, and the Purchase Price therefor, are
subject to adjustment as hereinafter set forth in Sections 2, 3 and 8.

         Section 1. Definitions. For all purposes of this Warrant the following
terms shall have the meanings indicated:

         "Board of Directors" shall mean the board off directors of the Company
`as constituted from time to time.

         "Common Stock" shall mean the common stock of the Company, par value
$0.0001 per share.

<PAGE>   2

         "Company" shall mean GERIMED OF AMERICA, INC., a corporation organized
and existing under the laws of the State of Colorado, and its successors and
assigns.

         "Final Exercise Date" shall mean December 31, 2003.

         "Initial Purchase Price" shall mean the initial Purchase Price of One
Hundredth of One Cent ($0.0001).

         "Maximum First Tranche" initially shall mean Three Hundred Sixty-Nine
Thousand Eight Hundred Fifty-One (369,851) shares of Series A Convertible
Preferred Stock.

         "Maximum Second Tranche" initially shall mean Four Hundred Twenty-Seven
Thousand One Hundred Fifty (427,150) shares of Series A Convertible Preferred
Stock, provided, however, that if less than the entire Maximum First Tranche
becomes exercisable under Section 3 of this Warrant, then the Maximum Second
Tranche shall be a number of shares of Series A Convertible Preferred Stock
equal to the sum of (i) 377,872, plus (ii) the product of 49,278 times the
percentage of the Maximum First Tranche that becomes exercisable under Section 3
of this Warrant.

         "Preferred Stock" shall mean the Series A Convertible Preferred Stock
of the Company, par value $0.0001 per share.

         "Purchase Price" initially shall mean the Initial Purchase Price, and
thereafter shall be such Initial Purchase Price as adjusted and in effect from
time to time thereafter pursuant to the provisions hereof.

         "SEC" shall mean the Securities and Exchange Commission.

         "Securities Act" shall mean the Securities Act of 1933, as amended, and
the regulations promulgated by the SEC thereunder.

         "Transfer" shall include any disposition of any Warrants or Warrant
Stock, or of any interest in either thereof, which would constitute a sale
thereof within the meaning of the Securities Act.

         "Warrant" shall mean this Warrant, evidencing the right, subject to
fulfillment of the conditions set forth herein, to purchase initially an
aggregate of 797,001 shares of Preferred Stock, and all Warrants issued in
exchange, transfer or replacement thereof.

         "Warrantholder" shall mean the registered holder or holders of this
Warrant and any related Warrant Stock.

                                       2
<PAGE>   3

         "Warrant Shares" shall mean the shares of Preferred Stock purchased or
purchasable by the registered holder(s) of this Warrant upon the exercise
thereof pursuant to Section 5.

All terms used in this Warrant which are not defined in Section 1 shall have the
respective meanings ascribed thereto elsewhere in this Warrant.

         Section 2. Initial Number of Warrant Unit;
                      Purchase Price.

         (a) Determination of Number of Shares Subject to this Warrant. The
initial number of shares of Preferred Stock which the Warrantholder shall have
the right to purchase is 797,001 shares of Preferred Stock, subject to the
conditions in Section 3 and to adjustment pursuant to Section 8 hereof.

         (b) Initial Purchase Price. The Initial Purchase Price for each Warrant
Share shall be One Hundredth of One Cent ($0.0001). The. Purchase Price for the
Warrant Shares shall be subject to adjustment pursuant to Section 8 hereof

         Section 3. Conditions on Exercise. The number of Warrant Shares for
which this Warrant ultimately shall be exercisable shall be determined based on
the EBIT of the Company for its 1998 and 1999 fiscal years, as set forth in this
Section. The "EBIT" of the Company for any period shall mean the Company's net
income for such period plus (i) all interest expense by the Company during such
period, plus (ii) all income and franchise tax expense incurred by the Company
during such period, and disregarding all extraordinary gains and losses outside
of the ordinary course of the Company's business. The net income of the Company
for any period shall be as set forth in the Company's audited consolidated
statement of income for such fiscal year, prepared in accordance with generally
accepted accounting principles, consistently applied.

         (a) If the EBIT of the Company for its fiscal year ending December 31,
1998 ("Fiscal 1998") is less than $1,000,000, then this Warrant shall become
exercisable with respect to a number of Warrant Shares equal to the Maximum
first Tranche;

         (b) If the EBIT of the Company for Fiscal 1998 is $2,000,000 or more,
then the number of Warrant Shares subject to this Warrant shall be reduced by
the entire amount of the Maximum First Tranche; and

         (c) If the EBIT of the Company for Fiscal 1998 is less than $2,000,000
but is $1,000,000 or more, then this Warrant shall become exercisable with
respect to a number of Warrant Shares equal to the Maximum First Tranche times a
fraction, the numerator of which is the difference between $2,000,000 and the
Company's EBIT for Fiscal 1998, and

                                       3
<PAGE>   4

the denominator of which is $1,000,000; and the number of Warrant Shares subject
to this Warrant shall be reduced by the difference between the Maximum First
Tranche and the number of Warrant Shares determined under the first part of this
subsection (c).

         (d) If the EBIT of the Company for its fiscal year ending December 31,
1999 ("Fiscal 1999") is $2,000,000 or more, then all Warrant Shares as to which
this Warrant has not yet become exercisable shall be canceled, and this Warrant
shall be exercisable only with respect to such Warrant Shares, if any, as shall
have become exercisable as a result of the Company's EBIT for Fiscal 1998.

         (e) If the EBIT of the Company for Fiscal 1999 is less than $1,000,000,
them this Warrant shall become exercisable with respect to a number of Warrant
Shares equal to the Maximum Second Tranche; and Warrant Shares as to which this
Warrant shall not then have become exercisable, if any, shall be canceled.

         (f) If the EBIT of the Company for Fiscal 1999 is less than $2,000,000
but is $1,000,000 or more, then this Warrant shall become exercisable with
respect to a number of Warrant Shares equal to the Maximum Second Tranche times
a fraction, the numerator of which is the difference between $2,000,000 and the
Company's EBIT for fiscal 1999, and the denominator of which is $1,000,000; and
Warrant Shares as to which this Warrant shall not then have become exercisable,
if any, shall be canceled.

Warrant Shares as to which this Warrant becomes exercisable under subsection (e)
or (f) above shall be in addition to those Warrant Shares as to which this
Warrant may become exercisable under subsection (a) or (c) above.

         Section 4. Elimination of Fractional Interests. The Company shall not
be required to issue certificates representing fractions of shares of Preferred
Stock upon exercise of this Warrant, nor shall it be required to issue scrip or
pay cash in lieu of fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction to
the nearest whole number of shares of Preferred Stock or other securities,
properties or rights receivable upon exercise of this Warrant.

         Section 5. Method of Exercise: Legend

         (a) Exercise of Warrant. This Warrant, is exercisable in whole or in
part at any time or from time to time on or after the date hereof, and prior to
the Final Exercise Date. In order to exercise this Warrant, the registered
holder hereof shall complete the Subscription Form attached hereto, and deliver
this Warrant and cash or a bank certified or cashier's check in an amount equal
to the then aggregate Purchase Price of the Warrant Shares being purchased, to
the Company, at 333 West Hampton Avenue, Suite 200, Englewood, Colorado 80110
(or at such other location as the Company may designate by notice in writing to
the holder of this Warrant). The Company, in its sole discretion, at the
holder's request, may

                                       4
<PAGE>   5

accept payment for Warrant Shares by the holder's surrender of Warrants having
an aggregate fair market value equal to the exercise price of the Warrant Shares
being purchased. The determination of the fair market value of any such
surrendered Warrants shall be made by the Board of Directors of the Company in
its sole discretion. Upon receipt by the Company of such Subscription Form, this
Warrant and Payment, such holder shall be deemed a holder of record of the
Preferred Stock specified in said Subscription Form, and the Company shall, as
promptly as practicable, and in any event within 10 business days thereafter,
execute and deliver to such holder a certificate or certificates evidencing the
aggregate number of Preferred Stock specified in said Subscription Form. Each
certificate so delivered shall be registered in the name of such holder or,
subject to Section 7 below, such other name as shall be designated by such
holder. The Company shall pay all expenses, taxes and other charges payable in
connection with the preparation, execution and delivery of certificates pursuant
to this Section. except that, in case such certificates shall be registered in a
name or names other than the name of the registered holder of this Warrant,
funds sufficient to pay all transfer taxes which shall be payable upon the
execution and delivery of such certificate or certificates shall be paid by the
registered holder hereof to the Company at the time of delivering this Warrant
to the Company as mentioned above.

         (b) Transfer Restriction Legend. Each certificate for Warrant Shares
initially issued upon exercise of this Warrant, unless at the time of exercise
such Warrant Shares are registered under the Securities Act, shall bear a legend
substantially similar to the following on the face thereof:

                           "THE SHARES REPRESENTED HEREBY HAVE NOT BEEN
                  REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED,
                  OR ANY STATE SECURITIES LAW. NEITHER THESE SHARES, NOR ANY
                  PORTION THEREOF OR INTEREST THEREIN, MAY BE SOLD, TRANSFERRED
                  OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED AND
                  QUALIFIED IN ACCORDANCE WITH SAID ACT AND ANY APPLICABLE STATE
                  SECURITIES LAW, OR IN THE OPINION OF COUNSEL REASONABLY
                  SATISFACTORY TO THE COMPANY, SUCH REGISTRATION AND
                  QUALIFICATION ARE NOT REQUIRED."

Any certificate issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a public distribution under an effective registration statement of the
securities represented thereby) shall also bear such legend unless in the
opinion of counsel specified in Section 7, the securities represented thereby
need no longer be subject to the restrictions contained in this Warrant. The

                                       5
<PAGE>   6

provisions of Section 7 shall be binding upon all subsequent holders of
certificates bearing the above legend and shall also be applicable to all
subsequent holders of this Warrant.

         (c) Character of Warrant Stock. All Preferred Stock issuable upon the
exercise of this Warrant shall, be duly authorized, validly issued, fully paid
and nonassessable.

         Section 6. Ownership and Replacement.

         (a) Ownership of this Warrant. The Company may deem and treat the
person in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary, until presentation of this Warrant for registration or transfer
as provided in this Section 6.

         (b) Exchange and Replacement. This Warrant is exchangeable upon the
surrender hereof by the registered holder to the Company at its office described
in Section 5, for new Warrants of like tenor and date representing in the
aggregate the right to purchase the number of Warrant Shares that may be
purchased hereunder, each of such new Warrants to represent the right to
purchase such number of shares as shall be designated by said registered holder
at the time of surrender. Subject to compliance with Section 7, this Warrant and
all rights hereunder are transferable in whole or in part upon the books, of the
Company by the registered holder hereof in person or by duty authorized
attorney, and a new Warrant shall be made and delivered by the Company, of the
same tenor and date as this Warrant but registered in the name of the
transferee, upon surrender of this Warrant, duly endorsed, to said office of the
Company. Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant, and, in case of
loss, theft or destruction, of indemnity or security reasonably satisfactory to
the Company, and upon surrender and cancellation of this Warrant, if mutilated,
the Company will make and deliver a new Warrant of like tenor, in lieu of this
Warrant. This Warrant shall be promptly cancelled by the Company upon the
surrender hereof in connection with any exchange, transfer or replacement. The
Company shall pay all expenses, taxes (other than transfer taxes) and other
charges payable in connection with the preparation, execution and delivery of
Warrants pursuant to this Section 6.

         Section 7. Transfer of Warrants or Warrant Shares.

         (a) Warrants and Warrant Shares Not Registered. The holder of this
Warrant, by accepting this Warrant, represents and acknowledges that this
Warrant and the Warrant Shares which may be purchased upon exercise of this
Warrant are not being registered under the Securities Act on the grounds that
the issuance of this Warrant and the offering and sale of such Warrant Shares
are exempt from registration under the Securities Act pursuant to one or more
exemptions therefrom, including Section 4(2) thereof, and that

                                       6
<PAGE>   7

the Company's reliance on such exemption is predicated in part on the initial
Warrantholder' s representations and agreements made to and with the Company in
the Securities Purchase Agreement dated on or about the date hereof.

         Notwithstanding any provisions contained in this Warrant to the
contrary, this Warrant and the related Warrant Shares shall not be transferable
except upon the conditions specified in this Section 7, which conditions are
intended, among other things, to ensure compliance with the provisions of the
Securities Act and applicable state securities laws in respect of the transfer
of this Warrant or of such Warrant Shares.

         (b) Notice of Intention to Transfer: Opinion of Counsel. The holder of
this Warrant, by accepting this Warrant, agrees that prior to any transfer of
this Warrant or any transfer of the related Warrant Shares, such holder will (i)
give written notice to the Company of its intention to effect such transfer, and
(ii) deliver to the Company (A) an opinion of counsel for the Company or an
opinion, in form and substance reasonably satisfactory to counsel for the
Company, of counsel skilled in securities matters (selected by such holder and
reasonably satisfactory to the Company) as to the absence of the necessity of
registration under the Securities Act, or (B) an interpretative letter from the
Securities and Exchange Commission to the effect that the proposed transfer may
be made without registration under the Securities Act, in either case
accompanied by evidence that such transfer will also be in compliance with
applicable state securities ("blue sky") laws; provided, however, that the
foregoing shall not apply with respect to any Warrant or Warrant Shares as to
which there is a registration statement in effect under the Securities Act at
the time of the proposed transfer.

By accepting this Warrant, the Warrantholder agrees to indemnify the Company and
hold it harmless from and against all damages, losses, liabilities (including
liability for rescission), costs and expenses which the Company may incur under
the Securities Act or otherwise, by reason of any misrepresentation by the
Warrantholder of facts concerning it or any proposed transfer of the Warrants
and/or Warrant Shares with respect to the availability of any exemption from
registration under the Securities Act.

         Section 8. Adjustment of Number of Shares and Purchase Price.

         (a) Adjustments for Distributions, Divisions or Consolidation or
Combination of Shares. In the event of any increase or decrease in the number of
shares of issued Preferred Stock by reason of a distribution, division or
consolidation or combination of such Shares at any time or from time to time
after the date hereof such that the holders of Preferred Stock shall have had an
adjustment made, without payment therefor, in the number of shares of Preferred
Stock owned by them or, on or after any record date fixed for the determination
of eligible holders, shall have become entitled or required to have had an
adjustment made in the number of Preferred Stock owned by them, without payment
therefor, them shall be a corresponding adjustment as to the number of shares of
Preferred

                                       7
<PAGE>   8

Stock covered by this Warrant (and to the Purchase Price for each Warrant Share
under this Warrant) with the result that the Warrantholder's proportionate
interest in the shares of Preferred Stock shall be maintained as before the
occurrence of such event without change in the aggregate Purchase Price set
forth in said Warrant

         (b) Adjustments for Recapitalization, Reclassification, Reorganization
or Other Like Capital Transactions or for Merger and Consolidation. in the event
the Company (or any other corporation or other entity the securities of which
are receivable at the time upon exercise of the Warrant) shall effect a plan of
recapitalization, reclassification, reorganization or other like capital
transaction or shall merge or consolidate with or into another entity or convey
all or substantially all of its assets to another entity at any time or from
time to time on or after the date hereof, then in each such case the
Warrantholder upon the exercise of this Warrant at any time after the
consummation of such recapitalization, reclassification, reorganization or other
like capital transaction or of such merger, consolidation or conveyance shall be
entitled to receive (in lieu of the securities or other property to which such
holder would have been entitled to receive upon exercise prior to such
consummation), the securities or other property to which the Warrantholder,
would have been ENTITLED to have received upon consummation of the subject
transaction if the holder hereof had exercised this Warrant immediately prior to
such consummation without adjustment, to the aggregate Purchase Price set forth
in said Warrant and all subject to further adjustment pursuant to Section 8(a)
hereof.

         Section 9. Special Agreements of the Company. The Company covenants and
agrees that:

         (a) Reservation of Shares. The Company will reserve and set apart and
have at all times free from preemptive rights, a number of shares of Preferred
Stock deliverable upon the exercise of this Warrant, and it will have at all
times any other rights or privileges sufficient to enable it at any time to
fulfill all of its obligations hereunder.

         (b) Avoidance of Certain Actions. The Company will not, by amendment of
its Articles of Incorporation or Bylaws or through any reorganization, of
assets, consolidation, merger, issue or sale of securities or otherwise avoid or
take any action which would have the effect of avoiding, the observance or
performance of any of the terms to be observed or performed hereunder by the
Company, but will at all times in good faith assist in carrying out all of the
provisions of this Warrant and in taking all of such action as may be necessary
or appropriate in order to protect the rights of the Warrantholder against
impairment.

         (c) Successors. This Warrant shall be binding upon any corporation or
other entity succeeding to the Company by merger or consolidation, and the
Company will not enter into any such transaction without obtaining the written
agreement of any such successor to be bound by the terms of this Warrant as if
it were the issuer hereof.

                                       8
<PAGE>   9

         Section 10. Notifications by the Company. In case at any time:

                 (a) the Company shall make any distribution to the holders of
         Preferred Stock or Common Stock;

                 (b) the Company shall make an offer for subscription pro rata
         to the holders of its Preferred Stock or Common Stock of any additional
         securities of the Company;

                 (c) there shall be any capital reorganization, reclassification
         of the shams of the Company, consolidation or merger of the Company
         with, or sale of all or substantially all of its assets to, a
         corporation or other entity; or

                 (d) there shall be a voluntary or involuntary dissolution,
         liquidation or winding-up the Company;

then, in any one or more of such cases, the Company shall give written notice to
Warrantholder of the date on which (i) the books of the Company shall close, or
a record shall be taken for such distribution or subscription rights, or (ii)
such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up shall take place, as the case may be. Such notice
shall also specify the date as of which the holders of Preferred Stock or Common
Stock of record shall participate in such distribution or subscription rights,
or shall be entitled to exchange their Preferred Stock or Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale. dissolution. liquidation, or
winding-up, as the case may be. Such written notice shall be given not less than
30 days and not more than 90 days prior to the action in question and not less
than 30 days and not more than 90 days prior to the record date or the date on
which the Company's transfer books are closed in respect thereto and such notice
may state that the record date is subject to the effectiveness of a registration
statement under the Securities Act or to a favorable vote of the shareholders of
the Company, if either is required.

         Section 11. Notices. Any notice or other document required or permitted
to be given or delivered to Warrantholders shall be delivered at, or sent by
certified or registered mail to the Warrantholder at, the most recent address of
the Warrantholder shown on the records of the Company, or to such other address
as shall have been furnished to the Company in writing by such Warrantholder.
Any notice or other document required or permitted to be given, or delivered to
the Company shall be sent by certified or registered mail to the Company at its
address set forth in Section 5 (and notice shall be deemed delivered three (3)
business days after deposit in the mail), or such other address as shall have
been furnished to the Warrantholder by the Company.

                                       9
<PAGE>   10

         Section 12. No Voting Rights: Limitation of Liability. This Warrant
shall not entitle any Warrantholder to vote on any matter coming to the
attention of the Shareholders of the Company or to any of the rights of a
shareholder of the Company. No provision hereof, in the absence of affirmative
action by the Warrantholder to purchase Preferred Stock hereunder, and no mere
enumeration herein of the rights or privileges of the holder hereof shall give
rise to any liability of such holder for the Purchase Price or any rights of
such holder as a shareholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

         Section 13. Miscellaneous. This Warrant shall be governed by, and
construed and enforced in accordance with, the laws of the State of Colorado.
This Warrant and any provision hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which
enforcement of the same is sought. The headings in this Warrant are for purposes
of reference only and shall not affect the meaning or construction of any of the
provisions hereof

          [THE BALANCE OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY]

                                       10
<PAGE>   11

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized representative, and to be dated as of December 1997.

                                         GERIMED OF AMERICA, INC.

                                         By:
                                            -----------------------------------
                                            Authorized Officer

                                       11
<PAGE>   12

                                   ASSIGNMENT

         To Be Executed by the Registered Holder if It Desires to Transfer the
         Within Warrant

         FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

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

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

the right to purchase ________ Preferred Stock, covered by the within Warrant,
as said Shares were constituted at the date of said Warrant, and does hereby
irrevocably constitute and appoint Attorney to make such transfer on the books
of the Company maintained for the purpose, with full power of substitution.

                                     Signature
                                              ----------------------------------

Dated
     -----------------------------
In the presence of

                                     NOTICE

         The signature to the foregoing Assignment must correspond to the name
as written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                       12
<PAGE>   13

                                SUBSCRIPTION FORM

         To Be Executed by the Registered Holder if It Desires to Exercise the
         Within Warrant

         The undersigned hereby exercises the right to purchase ___________
shares of Preferred Stock covered by the within Warrant at the date of this
subscription and herewith makes payment of the sum of $___________ representing
the Purchase Price in effect at this date. Certificates for such Shares shall be
issued in the name of and delivered to the undersigned, unless otherwise
specified by written instructions, signed by the undersigned and accompanying
this subscription.

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

                                           Signature
                                                    ----------------------------

                                           Address
                                                  ------------------------------

                                       13

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