Document:

EXHIBIT 4.0

                     BUILDING MATERIALS HOLDING CORPORATION
                          EMPLOYEE STOCK PURCHASE PLAN

1.   PURPOSE.

     The purpose of this Employee Stock Purchase Plan (this "Plan") is to
provide an opportunity for employees of Building Materials Holding Corporation
(the "Corporation") and its subsidiaries to purchase Common Stock of the
Corporation and thereby to have an additional incentive to contribute to the
prosperity of the Corporation. It is the intention of the Corporation that this
Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the
Internal Revenue Code of 1986, as amended.

2.   DEFINITIONS.

     (a)  "Board" shall mean the Board of Directors of the Corporation.

     (b)  "Code" shall mean the Internal Revenue Code of 1986, as amended. Any
reference to a section of the Code herein shall be a reference to any successor
or amended section of the Code.

     (c)  "Committee" shall mean the committee appointed by the Board in
accordance with Section 14 of the Plan.

     (d)  "Common Stock" shall mean the Common Stock of the Corporation, or any
stock into which such Common Stock may be converted.

     (e)  "Compensation" shall mean an Employee's wages, salaries, commissions
and fees for professional services actually rendered in the course of employment
with the Corporation or a Designated Subsidiary to the extent that the amounts
are includible in gross income, with any modifications determined by the
Committee. The Committee shall have the authority to determine and approve all
forms of pay to be included in the definition of Compensation and may change the
definition on a prospective basis.

     (f)  "Corporation" shall mean Building Materials Holding Corporation.

     (g)  "Designated Subsidiary" shall mean a Subsidiary that has been
designated by the Committee as eligible to participate in the Plan with respect
to its Employees, including without limitation, BMCW SouthCentral, L.P., a Texas
limited partnership.

     (h)  "Employee" shall mean an individual classified as an employee (within
the meaning of Code Section 3401(c) and the regulations thereunder) by the
Corporation or a Designated Subsidiary on the Corporation's or such Designated
Subsidiary's payroll records during the relevant participation period.

     (i)  "Entry Date" shall mean the first Trading Day of a Purchase Period
and, for new Participants, the first Trading Day of their first Purchase Period.

     (j)  "Fair Market Value" shall be the closing sales price for the Common
Stock (or the closing bid, if no sales were reported) as quoted on the Nasdaq
National Market on the date of determination if that date is a Trading Day, or
if the date of determination is not a Trading Day, the last market Trading Day
prior to the date of determination, as reported in THE WALL STREET JOURNAL or
such other source as the Committee deems reliable.

     (k)  "Participant" shall mean a participant in the Plan as described in
Section 5 of the Plan.

     (l)  "Plan" shall mean this Employee Stock Purchase Plan.

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     (m)  "Purchase Date" shall mean the last Trading Day of each Purchase
Period.

     (n)  "Purchase Period" shall mean the period of one month commencing after
one Purchase Date and ending on the Purchase Date that is one (1) month
thereafter, except that the first Purchase Period shall commence on the Plan's
effective date and end one month thereafter. Subsequent Purchase Periods shall
run consecutively after the termination of the preceding Purchase Period. The
duration and timing of Purchase Periods may be changed or modified by the
Committee.

     (o)  "Purchase Price" shall mean 85% of the Fair Market Value of a share of
Common Stock on the Entry Date or on the Purchase Date, whichever is lower;
provided however, that the Purchase Price may be adjusted by the Committee
pursuant to Section 7.4.

     (p)  "Stockholder" shall mean a record holder of shares entitled to vote
shares of Common Stock under the Corporation's bylaws.

     (q)  "Subsidiary" shall mean any corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, as
described in Code Section 424(f).

     (r)  "Trading Day" shall mean a day on which U.S. national stock exchanges
and the NASDAQ System are open for trading.

3.   ELIGIBILITY.

     Any Employee regularly employed on a full-time or part-time (20 hours or
more per week on a regular schedule) basis by the Corporation or by any
Designated Subsidiary on an Entry Date shall be eligible to participate in the
Plan with respect to the Purchase Period commencing on such Entry Date, provided
that the Committee may establish administrative rules requiring that employment
commence some minimum period (e.g., one or more pay periods) prior to an Entry
Date to be eligible to participate with respect to the Purchase Period beginning
on that Entry Date. The Committee may also determine that a designated group of
highly compensated Employees are ineligible to participate in the Plan so long
as the excluded category fits within the definition of "highly compensated
employee" in Code Section 414(q). No Employee may participate in the Plan if
immediately after a proposed purchase hereunder the Employee would own or be
considered to own (within the meaning of Code Section 424(d)) shares of stock,
including stock which the Employee may purchase by conversion of convertible
securities or under outstanding options granted by the Corporation, possessing
five percent (5%) or more of the total combined voting power or value of all
classes of stock of the Corporation or of any of its Subsidiaries. All Employees
who participate in the Plan shall have the same rights and privileges under the
Plan, except for differences that may be mandated by local law and that are
consistent with Code Section 423(b)(5); provided, however, that Employees
participating in a sub-plan adopted pursuant to Section 15 which is not designed
to qualify under Code section 423 need not have the same rights and privileges
as Employees participating in the Code section 423 Plan. The Board may impose
restrictions on eligibility and participation of Employees who are officers and
directors to facilitate compliance with federal or state securities laws or
foreign laws. Notwithstanding the foregoing, if any Employee violates the terms
of the Plan (including a sale or attempted sale of shares before delivery
thereof in violation of the holding period described in Section 9 hereof), the
Committee may suspend such Employee's eligibility to participate in the Plan for
a period of up to one (1) year from the date of such violation. Whether an
Employee has violated the terms of the Plan shall be determined in the sole
discretion of the Committee.

4.   PURCHASE PERIODS.

     The Plan shall be implemented by consecutive one (1) month Purchase
Periods, with a new Purchase Period commencing after one Purchase Date and
ending on the Purchase Date that is one (1) month thereafter (or on such other
date as determined by the Committee or Section 13 hereof). The first Purchase
Period shall commence on October 1, 2000. The Committee shall have the authority
to change the duration of Purchase Periods (including the commencement dates
thereof) with respect to future offerings without Stockholder approval if such
change is announced at least five (5) days prior to the scheduled beginning of
the first Purchase Period to be affected thereafter.

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5.   PARTICIPATION.

     5.1  An Employee who is eligible to participate in the Plan in accordance
with Section 3 may become a Participant by completing and submitting, on a date
prescribed by the Committee prior to an applicable Entry Date, a completed
payroll deduction authorization and Plan enrollment form provided by the
Corporation or by following an electronic or other enrollment process as
prescribed by the Committee. An eligible Employee may authorize payroll
deductions at the rate of any whole percentage of the Employee's Compensation,
not to exceed ten percent (10%) of the Employee's Compensation or such other
percentage limitation as may be established by the Committee from time to time.
All payroll deductions may be held by the Corporation and commingled with its
other corporate funds where administratively appropriate. No interest shall be
paid or credited to the Participant with respect to such payroll deductions. The
Corporation shall maintain a separate bookkeeping account for each Participant
under the Plan and the amount of each Participant's payroll deductions shall be
credited to such account. A Participant may not make any additional payments
into such account.

     5.2  Under procedures established by the Committee, a Participant may
withdraw from the Plan during a Purchase Period, by completing and filing a new
payroll deduction authorization and Plan enrollment form with the Corporation or
by following electronic or other procedures prescribed by the Committee, prior
to the fifth business day preceding the Purchase Date. If a Participant
withdraws from the Plan during a Purchase Period, his or her accumulated payroll
deductions will be refunded to the Participant without interest. The Committee
may establish rules limiting the frequency with which Participants may withdraw
and re-enroll in the Plan and may impose a waiting period on Participants
wishing to re-enroll following withdrawal.

     5.3  A Participant may change his or her rate of contribution through
payroll deductions at any time by filing a new payroll deduction authorization
and Plan enrollment form or by following electronic or other procedures
prescribed by the Committee; provided, however, the Committee may impose a
waiting period of up to 30 days before such change may be effective. If a
Participant has not followed such procedures to change the rate of contribution,
the rate of contribution shall continue at the originally elected rate
throughout the Purchase Period and future Purchase Periods. In accordance with
Section 423(b)(8) of the Code, the Committee may reduce a Participant's payroll
deductions to zero percent (0%) at any time during a Purchase Period.

6.   TERMINATION OF EMPLOYMENT.

     In the event any Participant terminates employment with the Corporation or
any of its Designated Subsidiaries for any reason (including death) prior to the
expiration of a Purchase Period, the Participant's participation in the Plan
shall terminate and all amounts credited to the Participant's account shall be
paid to the Participant or, in the case of death, to the Participant's heirs or
estate, without interest. Whether a termination of employment has occurred shall
be determined by the Committee. The Committee may also establish rules regarding
when leaves of absence or changes of employment status will be considered to be
a termination of employment, including rules regarding transfer of employment
among Designated Subsidiaries, Subsidiaries and the Corporation, and the
Committee may establish termination-of-employment procedures for the Plan that
are independent of similar rules established under other benefit plans of the
Corporation and its Subsidiaries.

7.   PURCHASE PERIOD; PURCHASE PRICE.

     7.1  The maximum number of shares that may be purchased under the Plan
shall be 200,000.

     7.2  Each Purchase Period shall be determined by the Committee. Unless
otherwise determined by the Committee, the Plan will operate with successive one
(1) month Purchase Periods commencing at the beginning of each month. The
Committee shall have the power to change the duration of future Purchase
Periods, without Stockholder approval, and without regard to the expectations of
any Participants.

     7.3  Each eligible Employee who has elected to participate as provided in
Section 5.1 shall be granted the opportunity to purchase that number of shares
(including a percentage of a whole share) of Common Stock which may be purchased
with the payroll deductions accumulated on behalf of such Employee during each
Purchase Period at the purchase price specified in Section 7.4 below, subject to
the additional limitation that no Employee

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participating in the Plan in accordance with Code Section 423 shall be granted
the opportunity to purchase Common Stock under the Plan at a rate which exceeds
twenty-five thousand dollars ($25,000) of the Fair Market Value of such Common
Stock (determined at the time such rights are granted) in any calendar year. The
foregoing sentence shall be interpreted so as to comply with Code Section
423(b)(8).

     7.4  The purchase price for shares of Common Stock purchased hereunder
shall be eighty-five percent (85%) or such other percentage designated by the
Committee (the "Designated Percentage") of the Fair Market Value of the Common
Stock at the time of acquisition of the Common Stock on the Entry Date. The
Committee may change the Designated Percentage with respect to any future
Purchase Period, but not below eighty-five percent (85%), and the Committee may
determine with respect to any prospective Purchase Period that the purchase
price shall be the Designated Percentage of the Fair Market Value of the Common
Stock on the Purchase Date.

8.   PURCHASE OF STOCK.

     Upon the expiration of each Purchase Period, a Participant's right to
purchase shares shall be exercised automatically for the purchase of that number
of shares (including a percentage of a whole share) of Common Stock which the
accumulated payroll deductions credited to the Participant's account at that
time shall purchase at the applicable price specified in Section 7.4.
Notwithstanding the foregoing, the Corporation or its designee may make such
provisions and take such action as it deems necessary or appropriate for the
withholding of taxes and/or social insurance which the Corporation or its
Designated Subsidiary is required by law or regulation of any governmental
authority to withhold. Each Participant, however, shall be responsible for
payment of all individual tax liabilities arising under the Plan.

9.   PAYMENT AND DELIVERY.

     At the end of each fiscal quarter, the Corporation shall deliver to the
Participant a record of the Common Stock purchased and the balance of any amount
of payroll deductions credited to the Participant's account not used for the
purchase, except as specified below. The Committee may permit or require that
shares be deposited directly with a broker designated by the Committee or to a
designated agent of the Corporation, and the Committee may utilize electronic or
automated methods of share transfer. The Committee may (i) require that shares
be retained with such broker or another agent for a period of up to one (1) year
or such other period of time designated by the Committee and (ii) establish
other procedures to permit tracking of disqualifying dispositions of such
shares. No Participant shall have any voting, dividend, or other Stockholder
rights with respect to shares purchased under the Plan until the shares have
been purchased and delivered to the Participant as provided in this Section 9.

     10.  [This Section Intentionally Left Blank.]

11.  MERGER, LIQUIDATION, OTHER CORPORATION TRANSACTIONS.

     In the event of the proposed liquidation or dissolution of the Corporation,
a proposed sale of all or substantially all of the assets of the Corporation, or
the merger or consolidation of the Corporation with or into another corporation,
the Purchase Period will terminate immediately prior to the consummation of such
proposed transaction, unless otherwise provided by the Board in its sole
discretion, and all outstanding rights to purchase shares hereunder shall
automatically terminate and the amounts of all outstanding payroll deductions
will be refunded without interest to the Participants.

12.  TRANSFERABILITY.

     Rights or interests to purchase Common Stock hereunder may not be
voluntarily or involuntarily assigned, transferred, pledged, or otherwise
disposed of in any way by any Participant, and any attempted assignment,
transfer, pledge, or other disposition shall be null and void and without
effect. If a Participant in any manner attempts to transfer, assign or otherwise
encumber his or her rights or interests under the Plan, other than as permitted
by the Code, such act shall be treated as an election by the Participant to
discontinue participation in the Plan pursuant to Section 5.2.

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13.  AMENDMENT OR TERMINATION OF THE PLAN.

     13.1 The Plan shall continue until October 1, 2010 unless otherwise
terminated in accordance with Section 13.2.

     13.2 The Board may, in its sole discretion, insofar as permitted by law,
terminate or suspend the Plan, or revise or amend it in any respect whatsoever,
except that, without approval of the Stockholders, no such revision or amendment
shall increase the number of shares subject to the Plan, other than an
adjustment under Section 10 of the Plan.

14.  ADMINISTRATION.

     The Board shall appoint a Committee consisting of at least two members who
will serve for such period of time as the Board may specify and whom the Board
may remove at any time. The Committee will have the authority and responsibility
for the day-to-day administration of the Plan, the authority and responsibility
specifically provided in the Plan and any additional duty, responsibility and
authority delegated to the Committee by the Board, which may include any of the
functions assigned to the Board in the Plan. The Committee may delegate to one
or more individuals or entities the day-to-day administration of the Plan. The
Committee shall have full power and authority to promulgate any rules and
regulations which it deems necessary for the proper administration of the Plan,
to interpret the provisions and supervise the administration of the Plan, to
make factual determinations relevant to Plan entitlements and to take all action
in connection with administration of the Plan as it deems necessary or
advisable, consistent with the delegation from the Board. Decisions of the Board
and the Committee shall be final and binding upon all Participants. Any decision
reduced to writing and signed by a majority of the members of the Committee
shall be fully effective as if it had been made at a meeting of the Committee
duly held. The Corporation shall pay all expenses incurred in the administration
of the Plan. No Board or Committee member shall be liable for any action or
determination made in good faith with respect to the Plan or any rights granted
hereunder.

15.  COMMITTEE RULES FOR FOREIGN JURISDICTIONS.

     The Committee may adopt rules or procedures relating to the operation and
administration of the Plan to accommodate the specific requirements of local
laws and procedures. Without limiting the generality of the foregoing, the
Committee is specifically authorized to adopt rules and procedures regarding
handling of payroll deductions, payment of interest, conversion of local
currency, payroll tax, withholding procedures and handling of stock certificates
which vary with local requirements.

     The Committee may also adopt sub-plans applicable to particular
Subsidiaries or locations, which sub-plans may be designed to be outside the
scope of Code Section 423. The rules of such sub-plans may take precedence over
other provisions of the Plan, with the exception of Section 7.1, but unless
otherwise superseded by the terms of such sub-plan, the provisions of the Plan
shall govern the operation of such sub-plan.

16.  SECURITIES LAWS REQUIREMENTS.

     The Corporation shall not be under any obligation to issue Common Stock
purchased hereunder unless and until the Corporation has determined that: (i) it
and the Participant have taken all actions required to register the Common Stock
under the Securities Act of 1933, or to perfect an exemption from the
registration requirements thereof; (ii) any applicable listing requirement of
any stock exchange on which the Common Stock is listed has been satisfied; and
(iii) all other applicable provisions of state, federal and applicable foreign
law have been satisfied.

17.  GOVERNMENTAL REGULATIONS.

     This Plan and the Corporation's obligation to sell and deliver shares of
its stock under the Plan shall be subject to the approval of any governmental
authority required in connection with the Plan or the authorization, issuance,
sale, or delivery of stock hereunder.

18.  NO ENLARGEMENT OF EMPLOYEE RIGHTS.

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     Nothing contained in this Plan shall be deemed to give any Employee the
right to be retained in the employ of the Corporation or any Designated
Subsidiary or to interfere with the right of the Corporation or Designated
Subsidiary to discharge any Employee at any time.

19.  GOVERNING LAW.

     This Plan shall be governed by Delaware law, without regard to conflict of
law principles thereof.

20.  EFFECTIVE DATE.

     This Plan shall be effective October 1, 2000, subject to approval of the
Stockholders of the Corporation within 12 months before or after its adoption by
the Board.

21.  REPORTS.

     Individual accounts shall be maintained for each Participant in the Plan.
Statements of account shall be given to Participants at least annually, which
statements shall set forth the amounts of payroll deductions, the Purchase
Price, the number of shares purchased and the remaining cash balance, if any.

22.  DESIGNATION OF BENEFICIARY FOR OWNED SHARES AND ACCUMULATED PAYROLL
DEDUCTIONS.

     With respect to shares of Common Stock purchased by the Participant
pursuant to the Plan and held in an account maintained by the Corporation or its
assignee on the Participant's behalf, the Participant may be permitted to file a
written designation of beneficiary. The Participant may change such designation
of beneficiary at any time by written notice to the Corporation. Subject to
local legal requirements, in the event of a Participant's death, the Corporation
or its assignee shall deliver such shares of Common Stock to the designated
beneficiary.

     Subject to local law, in the event of the death of a Participant and in the
absence of a beneficiary validly designated who is living at the time of such
Participant's death, the Corporation shall deliver such shares of Common Stock
to the executor or administrator of the estate of the Participant, or if no such
executor or administrator has been appointed (to the knowledge of the
Corporation), the Corporation in its sole discretion, may deliver (or cause its
assignee to deliver) such shares of Common Stock to the spouse, dependent or
relative of the Participant, or if no spouse, dependent or relative is known to
the Corporation, then to such other person as the Corporation may determine.

     In the event of death of a Participant during a Purchase Period, the
Corporation shall reimburse such Participant's accumulated payroll deductions
during such Purchase Period to the Participant's designated beneficiary, or in
the absence of a beneficiary validly designated who is living at the time of
such Participant's death, to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed (to the
knowledge of the Corporation), the Corporation in its sole discretion, may
deliver (or cause its assignee to deliver) such accumulated payroll deductions
to the spouse, dependent or relative of the Participant, or if no spouse,
dependent or relative is known to the Corporation, then to such other person as
the Corporation may determine.

                                      * * *

                                       6"THE WARRANTS REPRESENTED BY THIS CERTIFICATE
                [AND THE SHARES ISSUABLE UPON EXERCISE THEREOF]
                 HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED, AND ARE "RESTRICTED
                SECURITIES" AS THAT TERM IS DEFINED IN RULE 144
                  UNDER THE ACT. THE SHARES MAY NOT BE OFFERED
                 FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT
                PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
               UNDER THE ACT, THE AVAILABILITY OF WHICH IS TO BE
                ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

                         THE TRANSFER OF THIS WARRANT IS
                         RESTRICTED AS DESCRIBED HEREIN.

                           HARBOUR ENTERTAINMENT, INC.

                           Warrant for the Purchase of
                                  Common Stock

     THIS CERTIFIES that, for value received,  RUSSO SECURITIES,  INC., 128 Sand
Lane, Staten Island,  NY 10305 (the "Holder"),  is entitled to subscribe for and
purchase  from  HARBOUR   ENTERTAINMENT,   INC.,  a  Delaware  corporation  (the
"Company"),  upon the terms and conditions set forth herein, at any time or from
time to time after _____________, 2000, and before 5:00 P.M. on _______________,
2004,  New York  time (the  "Exercise  Period"),  for  ___________  Shares  (the
"Representative's  Shares") of the Company's  common stock,  par value $.001 per
share (the "Common  Stock") at a price of 165% of the public offering price (the
"Share  Exercise  Price").  This  Warrant is the warrant or one of the  warrants
(collectively,  including  any warrants  issued upon the exercise or transfer of
any such warrants in whole or in part, the  "Warrants")  issued  pursuant to the
Underwriting  Agreement,  dated April 12, 2000,  between the Company,  and Russo
Securities, Inc., relating to the initial public offering of 1,715,000 Shares of
Common Stock. As used herein the term "this Warrant" shall mean and include this
Warrant and any Warrant or Warrants  hereafter  issued as a  consequence  of the
exercise or transfer of this  Warrant in whole or in part.  This Warrant may not
be sold,  transferred,  assigned or hypothecated until one year from the date of
this  prospectus,  except that this Warrant or any such other  securities may be
transferred, in whole or in part, to (i) one or more officers or partners of the
Holder  (or the  officers  or  partners  of any such  partner);  (ii) any  other
underwriting  firm or member of the  selling  group  which  participated  in the
public  offering  which  commenced  on  ____________,  2000 (or the  officers or
partners of any such firm);  (iii) a successor to the Holder, or the officers or
partners of such successor;  (iv) a purchaser of substantially all of the assets
of the Holder;  or (v) by  operation  of law;  and the term the "Holder" as used
herein shall include any transferee to whom this Warrant has been transferred in
accordance with the above.

     1. This Warrant may be  exercised  during the  Exercise  Period,  as to the
whole or any lesser number of whole Representative's Shares, by the surrender of
this Warrant (with the election at the end hereof duly  executed) to the Company
at its office at 100A Gary Way, Ronkonkoma,  NY 11779, or at such other place as
is designated  in writing by the Company,  together with (a) a certified or bank
cashier's  check  payable to the order of the Company in an amount  equal to the
Exercise Price  multiplied by the number of  Representative's  Shares and/or for
which this Warrant is being exercised (the "Aggregate Exercise Price"),  (b) the
surrender to the Company of securities  of the Company or any  subsidiary of the
Company  having a Current  Market Price (as defined in Section 5(g) below) equal
to the Aggregate Exercise Price, (c) the acceptance by the Holder of a number of
Representative's  Shares  equal to the number of  Representative's  Shares being
purchased upon such exercise, less that number of Representative's Shares having
a Current Market Price (calculated, for the purpose hereof as the Current Market
Price of the underlying Representative's Shares) equal to the Aggregate Exercise
Price, or (d) any combination of the foregoing.
<PAGE>
     2. Upon each exercise of the Holder's  rights to purchase  Representative's
Shares,  the  Holder  shall  be  deemed  to be  the  holder  of  record  of  the
Representative's Shares,  notwithstanding that the transfer books of the Company
shall then be closed or certificates  representing such Representative's  Shares
shall  not  then  have  been  actually  delivered  to the  Holder.  As  soon  as
practicable  after each such exercise of this  Warrant,  the Company shall issue
and deliver to the Holder a certificate or certificates for the Representative's
Shares issuable upon such exercise (or the  Representative=s  Shares  underlying
such  Representative's  Shares),  registered  in the name of the  Holder  or its
designee.  If this Warrant  should be exercised in part only, the Company shall,
upon  surrender  of this  Warrant  for  cancellation,  execute and deliver a new
Warrant  evidencing  the right of the  Holder to  purchase  the  balance  of the
Representative's Shares (or portions thereof) subject to purchase hereunder.

     3. Any  Warrants  issued  upon the  transfer  or  exercise  in part of this
Warrant shall he numbered and shall he registered in a Warrant  Register as they
are issued.  The Company shall be entitled to treat the registered holder of any
Warrant on the Warrant  Register as the owner in fact  thereof for all  purposes
and shall not be bound to  recognize  any suitable or other claim to or interest
in such Warrant on the part of any other person, and shall not be liable for any
registration or transfer of Warrants which are registered or to be registered in
the name of a  fiduciary  or the  nominee of a  fiduciary  unless  made with the
actual  knowledge that a fiduciary or nominee is committing a breach of trust in
requesting such  registration  or transfer,  or with the knowledge of such facts
that its  participation  therein  amounts to bad faith.  This  Warrant  shall be
<PAGE>
transferable  only on the  books  of the  Company  upon  delivery  thereof  duly
endorsed by the Holder or by his duly authorized attorney or representative,  or
accompanied  by proper  evidence of  succession,  assignment,  or  authority  to
transfer.  In all cases of transfer  by an  attorney,  executor,  administrator,
guardian, or other legal representative,  duly authenticated  evidence of his or
its authority shall be produced.  Upon any registration of transfer, the Company
shall  deliver a new Warrant or Warrants to the person  entitled  thereto.  This
Warrant  may be  exchanged,  at the option of the Holder  thereof,  for  another
Warrant,  or other  Warrants  of  different  denominations,  of like  tenor  and
representing   in  the  aggregate  the  right  to  purchase  a  like  number  of
Representative's  Shares,  upon surrender to the Company or its duly  authorized
agent.  Notwithstanding  the foregoing,  the Company shall have no obligation to
cause  Warrants to be  transferred on its books to any person if, in the opinion
of counsel to the Company,  such transfer does not comply with the provisions of
the  Securities  Act of  1933,  as  amended  (the  "Act"),  and  the  rules  and
regulations thereunder.

     4. The Company  shall at all times  reserve and keep  available  out of its
authorized  and unissued  Common Stock,  solely for the purpose of providing for
the  exercise of the  Warrants,  such number of shares of Common Stock as shall,
from time to time, be sufficient therefor. The Company covenants that all shares
of Common Stock issuable upon exercise of this Warrant and the  Representative's
Warrants,  upon  receipt by the Company of the full payment  therefor,  shall be
validly issued, fully paid, non-assessable, and free of preemptive rights.

     5. (a) In case of any  consolidation  with or merger of the Company with or
into  another  corporation  (other than a merger or  consolidation  in which the
Company is the  surviving or  continuing  corporation),  or in case of any sale,
lease,  or conveyance to another  corporation  of the property and assets of any
nature of the Company as an  entirety  or  substantially  as an  entirety,  such
successor,  leasing,  or purchasing  corporation,  as the case may be, shall (i)
execute  with the Holder an agreement  providing  that the Holder shall have the
right  thereafter to receive upon  exercise of this Warrant  solely the kind and
amount  of  shares  of  stock  and  other  securities,  property,  cash,  or any
combination thereof receivable upon such consolidation,  merger, sale, lease, or
conveyance  by a holder of the  number of shares of Common  Stock for which this
Warrant  might  have been  exercised  immediately  prior to such  consolidation,
merger,  sale,  lease,  or conveyance and (ii) make  effective  provision in its
certificate  of  incorporation  or  otherwise,  if  necessary,  to  effect  such
agreement.

     (b) In case of a  reclassification  or change of the shares of Common Stock
issuable upon exercise of this Warrant (other than a change in par value or from
no par  value to a  specified  par  value,  or as a result of a  subdivision  or
combination,  but including any change in the shares into two or more classes or
series  of  shares),  or in case  of any  consolidation  or  merger  of  another
corporation into the Company in which the Company is the continuing  corporation
and in which there is a  reclassification  or change  (including a change to the
right to receive  cash or other  property)  of the shares of Common Stock (other
than a change in par value, or from no par value to a specified par value, or as
a result of a subdivision or combination, but including any change in the shares
into two or more  classes or series of shares),  the Holder shall have the right
thereafter to receive upon  exercise of this Warrant  solely the kind and amount
of shares of stock and other  securities,  property,  cash,  or any  combination
thereof receivable upon such reclassification,  change, consolidation, or merger
by a holder of the number of shares of Common Stock for which this Warrant might
have  been  exercised  immediately  prior  to  such  reclassification,   change,
consolidation, or merger.

     (c) The  above  provisions  of this  Section  5 shall  similarly  apply  to
successive  reclassifications  and  changes  of shares  of  Common  Stock and to
successive consolidations, mergers, sales, leases, or conveyances.
<PAGE>
     6. In case at any time the Company shall propose

     (a) to pay any dividend or make any  distribution on shares of Common Stock
in shares of Common Stock or make any other  distribution  (other than regularly
scheduled  cash  dividends  which are not in a greater amount per share than the
most recent such cash dividend) to all holders of Common Stock; or

     (b) to issue any rights,  warrants,  or other  securities to all holders of
Common Stock entitling them to purchase any additional shares of Common Stock or
any other rights, warrants, or other securities; or

     (c) to effect  any  reclassification  or change  of  outstanding  shares of
Common  Stock,  or any  consolidation,  merger,  sale,  lease,  or conveyance of
property, described in Section 6; or

     (d) to effect any liquidation,  dissolution,  or winding-up of the Company;
or

     (e) to take any other action which would cause an  adjustment to the Public
Exercise Price;

then,  and in any one or more of such  cases,  the  Company  shall give  written
notice  thereof,  by  registered  mail,  postage  prepaid,  to the Holder at the
Holder's address as it shall appear in the Warrant Register,  mailed at least 15
days prior to (i) the date as of which the holders of record of shares of Common
Stock to be  entitled  to  receive  any  such  dividend,  distribution,  rights,
warrants,  or other securities are to be determined,  (ii) the date on which any
such   reclassification,   change  of   outstanding   shares  of  Common  Stock,
consolidation,   merger,  sale,  lease,  conveyance  of  property,  liquidation,
dissolution,  or winding-up is expected to become effective,  and the date as of
which it is expected  that  holders of record of shares of Common Stock shall be
entitled to exchange  their shares for  securities  or other  property,  if any,
deliverable   upon  such   reclassification,   change  of  outstanding   shares,
consolidation,   merger,  sale,  lease,  conveyance  of  property,  liquidation,
dissolution, or winding-up, or (iii) the date of such action which would require
an adjustment to the Public Exercise Price.
<PAGE>
     7. The issuance of any shares or other securities upon the exercise of this
Warrant, and the delivery of certificates or other instruments representing such
shares or other  securities,  shall be made without charge to the Holder for any
tax or other charge in respect of such issuance. The Company shall not, however,
be  required  to pay any tax which may be payable  in  respect  of any  transfer
involved in the issue and delivery of any  certificate in a name other than that
of the Holder and the Company shall not be required to issue or deliver any such
certificate  unless and until the person or persons requesting the issue thereof
shall have paid to the Company the amount of such tax or shall have  established
to the satisfaction of the Company that such tax has been paid.

     8.  (a)  If,  at  any  time  during  the  four-year  period  commencing  on
____________,  2000, the Company shall file a registration statement (other than
on Form S-4, Form S-8, or any successor  form) with the  Securities and Exchange
Commission (the "Commission") while any Underwriters' Securities (as hereinafter
defined)  are  outstanding,  the Company  shall give all the then holders of any
Underwriters' Securities (the "Eligible Holders") at least 45 days prior written
notice  of the  filing  of such  registration  statement.  If  requested  by any
Eligible Holder in writing within 30 days after receipt of any such notice,  the
Company  shall,  at  the  Company's  sole  expense  (other  than  the  fees  and
disbursements   of  counsel  for  the  Eligible  Holders  and  the  underwriting
discounts,  if any, payable in respect of the  Underwriters'  Securities sold by
any  Eligible  Holder),  register or qualify all or, at each  Eligible  Holder's
option, any portion of the Underwriters'  Securities of any Eligible Holders who
shall have made such request,  concurrently  with the registration of such other
securities,  all to the extent  requisite to permit the public offering and sale
of the  Underwriters'  Securities  through  the  facilities  of all  appropriate
securities  exchanges  and the  over-the-counter  market,  and will use its good
faith best efforts  through its officers,  directors,  auditors,  and counsel to
cause  such   registration   statement  to  become   effective  as  promptly  as
practicable.  Notwithstanding the foregoing,  if the managing underwriter of any
such  offering  shall advise the Company in writing  that,  in its opinion,  the
distribution of all or a portion of the Underwriters' Securities requested to be
included in the registration  concurrently  with the securities being registered
by the  Company  would  materially  adversely  affect the  distribution  of such
securities  by the Company for its own  account,  then any  Eligible  Holder who
shall have requested  registration of his or its Underwriters'  Securities shall
delay the offering and sale of such  Underwriters'  Securities  (or the portions
thereof so  designated  by such managing  underwriter)  for such period,  not to
exceed 60 days (the "Delay Period"),  as the managing underwriter shall request,
provided that no such delay shall be required as to any Underwriters Securities@
if any securities of the Company are included in such registration statement and
eligible  for sale during the Delay  Period for the account of any person  other
than the Company and any Eligible Holder unless the securities  included in such
registration  statement  and  eligible for sale during the Delay Period for such
other  person  shall  have  been  reduced  pro  rata  to  the  reduction  of the
Underwriters'  Securities  which were  requested to be included and eligible for
sale  during  the  Delay   Period  in  such   registration.   As  used   herein,
"Underwriters" Securities' shall mean the Warrants, the Representative's Shares,
the Representative's  Warrants, and the Warrant Shares which, in each case, have
not been  previously  sold  pursuant  to a  registration  statement  or Rule 144
promulgated under the Act.

     (b) If, at any time during the four-year period commencing on ____________,
2000,but  said demand can only be exercised  once,  the Company  shall receive a
written  request,  from  Eligible  Holders  who in the  aggregate  own (or  upon
exercise of all  Warrants  or  Representative's  Warrants  then  outstanding  or
issuable  would own) a majority  of the total  number of shares of Common  Stock
then included (or upon such  exercises  would be included) in the  Underwriters'
Securities (the "Majority Holders"), to register the sale of all or part of such
Underwriters' Securities, the Company shall, as promptly as practicable, prepare
and file with the Commission a registration  statement  sufficient to permit the
public offering and sale of the Underwriters'  Securities through the facilities
of all appropriate securities exchanges and the over- all appropriate securities
exchanges  and the  over-the-counter  market,  and will use its good  faith best
efforts  through its officers,  directors,  auditors,  and counsel to cause such
registration statement to become effective as promptly as practicable; provided,
however,  that the Company shall only be obligated to file one such registration
statement for which all expenses  incurred in connection with such  registration
<PAGE>
(other than the fees and  disbursements  of counsel for the Eligible Holders and
underwriting  discounts,  if  any,  payable  in  respect  of  the  Underwriters'
Securities sold by the Eligible  Holders) shall be borne by the Company.  Within
three  business days after  receiving any request  contemplated  by this Section
9(b), the Company shall give written  notice to all the other Eligible  Holders,
advising each of them that the Company is proceeding with such  registration and
offering  to include  therein  all or any  portion  of any such  other  Eligible
Holder's Underwriters' Securities,  provided that the Company receives a written
request to do so from such  Eligible  Holder within 30 days after receipt by him
or it of the Company's notice.

     (c) In the  event of a  registration  pursuant  to the  provisions  of this
Section 9, the  Company  shall use its best  efforts to cause the  Underwriters'
Securities  so  registered  to be  registered  or  qualified  for sale under the
securities or blue sky laws of such  jurisdictions as the Holder or such holders
may  reasonably  request;  provided,  however,  that the  Company  shall  not be
required to qualify to do business in any state by reason of this  Section  9(c)
in which it is not otherwise required to qualify to do business.

     (d) The Company shall keep  effective  any  registration  or  qualification
contemplated  by this Section 9 and shall from time to time amend or  supplement
each  applicable   registration   statement,   preliminary   prospectus,   final
prospectus,  application, document, and communication for such period of time as
shall be required to permit the Eligible  Holders to complete the offer and sale
of the Underwriters'  Securities covered thereby.  The Company shall in no event
be  required  to keep any such  registration  or  qualification  in effect for a
period in excess of nine months from the date on which the Eligible  Holders are
first free to sell such Underwriters'  Securities;  provided,  however, that, if
the Company is required to keep any such registration or qualification in effect
with respect to securities other than the  Underwriters'  Securities beyond such
period,  the Company shall keep such  registration or qualification in effect as
it relates to the  Underwriters  Securities for so long as such  registration or
qualification  remains  or is  required  to remain in effect in  respect of such
other securities.
<PAGE>
     (e) In the  event of a  registration  pursuant  to the  provisions  of this
Section 9, the  Company  shall  furnish to each  Eligible  Holder such number of
copies  of the  registration  statement  and of each  amendment  and  supplement
thereto (in each case, including all exhibits), such reasonable number of copies
of each prospectus contained in such registration  statement and each supplement
or amendment thereto (including each preliminary prospectus), all of which shall
conform to the requirements of the Act and the rules and regulations thereunder,
and such other  documents,  as any  Eligible  Holder may  reasonably  request to
facilitate the  disposition  of the  Underwriters'  Securities  included in such
registration.

     (f) In the  event of a  registration  pursuant  to the  provisions  of this
Section 9, the Company shall furnish each Eligible  Holder of any  Underwriters'
Securities so registered with an opinion of its counsel  (reasonably  acceptable
to the Eligible  Holders) to the effect that (i) the registration  statement has
become effective under the Act and no order suspending the  effectiveness of the
registration  statement,  preventing or suspending  the use of the  registration
statement, any preliminary prospectus, any final prospectus, or any amendment or
supplement  thereto has been issued, nor has the Commission or any securities or
blue sky authority of any jurisdiction instituted or threatened to institute any
proceedings with respect to such an order,  (ii) the registration  statement and
each prospectus forming a part thereof (including each preliminary  prospectus),
and any  amendment or supplement  thereto,  complies as to form with the Act and
the rules and regulations thereunder, and (iii) such counsel has no knowledge of
any  material  misstatement  or omission in such  registration  statement or any
prospectus,  as  amended  or  supplemented.  Such  opinion  shall also state the
jurisdictions  in which the  Underwriters'  Securities  have been  registered or
qualified for sale pursuant to the provisions of Section 9(c).

     (g) The Company  agrees that until all the  Underwriters'  Securities  have
been sold under a registration  statement or pursuant to Rule 144 under the Act,
it shall keep  current in filing all  reports,  statements  and other  materials
required to be filed with the Commission to permit holders of the  Underwriters'
Securities to sell such securities under Rule 144.

     9. (a) Subject to the  conditions  set forth below,  the Company  agrees to
indemnify  and hold  harmless each  Eligible  Holder,  its officers,  directors,
partners,  employees, agents, and counsel, and each person, if any, who controls
any such person  within the meaning of Section 15 of the Act or Section 20(a) of
the Securities  Exchange Act of 1934, as amended (the "Exchange Act"),  from and
against  any and  all  loss,  liability,  charge,  claim,  damage,  and  expense
whatsoever (which shall include, for all purposes of this Section 10, but not be
limited  to,  attorneys'  fees  and any and all  reasonable  expense  whatsoever
incurred in  investigating,  preparing,  or  defending  against any  litigation,
commenced or threatened,  or any claim whatsoever,  and any and all amounts paid
in settlement of any claim or litigation), as and when incurred, arising out of,
based upon, or in  connection  with (i) any untrue  statement or alleged  untrue
statement  of a  material  fact  contained  (A) in any  registration  statement,
preliminary  prospectus,  or final  prospectus (as from time to time amended and
supplemented),  or any amendment or supplement thereto,  relating to the sale of
any of the Underwriters' Securities, or (B) in any application or other document
or  communication  (in this  Section 10  collectively  called an  'application')
executed  by or on behalf  of the  Company  or based  upon  written  information
furnished by or on behalf of the Company filed in any  jurisdiction  in order to
register or qualify any of the Underwriters'  Securities under the securities or
blue sky laws thereof or filed with the Commission or any  securities  exchange;
or any  omission  or alleged  omission  to state a material  fit  required to be
stated  therein or  necessary  to make the  statements  therein not  misleading,
unless such  statement or omission was made in reliance  upon and in  conformity
with written information  furnished to the Company with respect to such Eligible
Holder  by  or  on  behalf  of  such  person  expressly  for  inclusion  in  any
registration  statement,  preliminary  prospectus,  or final prospectus,  or any
amendment or supplement thereto,  or in any application,  as the case may be, or
(ii) any breach of any representation,  warranty,  covenant, or agreement of the
Company contained in this Warrant. The foregoing agreement to indemnify shall be
in  addition  to  any  liability  the  Company  may  otherwise  have,  including
liabilities arising under this Warrant.
<PAGE>
     If  any  action  is  brought  against  any  Eligible  Holder  or any of its
officers, directors, partners, employees, agents, or counsel, or any controlling
persons of such person (an  "indemnified  party") in respect of which  indemnity
may be sought  against the Company  pursuant to the  foregoing  paragraph,  such
indemnified party or parties shall promptly notify the Company in writing of the
institution  of such action (but the failure so to notify  shall not relieve the
Company from any liability  other than  pursuant to this Section  10(a)) and the
Company  shall  promptly  assume  the  defense  of such  action,  including  the
employment of counsel  (reasonably  satisfactory  to such  indemnified  party or
parties) and payment of expenses.  Such indemnified  party or parties shall have
the right to employ its or their own counsel in any such case,  but the fees and
expenses of such counsel  shall be at the expense of such  indemnified  party or
parties  unless the  employment  of such counsel  shall have been  authorized in
writing by the  Company in  connection  with the  defense of such  action or the
Company shall not have promptly employed counsel reasonably satisfactory to such
indemnified  party or parties to have charge of the defense of such action after
written  request  therefor  by  the  party  seeking   indemnification   or  such
indemnified  party or parties shall have reasonably  concluded that there may be
one or more  legal  defenses  available  to it or them or to  other  indemnified
parties which are different from those available to the Company, in any of which
events  such fees and  expenses  shall be borne by the  Company  and the Company
shall not have the right to direct the  defense of such  action on behalf of the
indemnified  party or  parties.  Anything  in this  Section  10 to the  contrary
notwithstanding,  the Company shall not be liable for any settlement of any such
claim or  action  effected  without  its  written  consent,  which  shall not be
unreasonably  withheld. The Company shall not, without the prior written consent
of each  indemnified  party that is not released as described in this  sentence,
settle or compromise any action,  or permit a default or consent to the entry of
judgment in or otherwise seek to terminate any pending or threatened  action, in
respect  of  which  indemnity  may be  sought  hereunder  (whether  or  not  any
indemnified  party is a party  thereto),  unless  such  settlement,  compromise,
consent,  or termination  includes an unconditional  release of each indemnified
party from all liability in respect of such action.  The Company agrees promptly
to  notify  the  Eligible  Holders  of the  commencement  of any  litigation  or
<PAGE>
proceedings  against  the  Company  or any  of  its  officers  or  directors  in
connection  with the sale of any  Underwriters'  Securities  or any  preliminary
prospectus,  prospectus,  registration  statement,  or amendment  or  supplement
thereto,  or  any  application   relating  to  any  sale  of  any  Underwriters'
Securities.

     (b) The Holder  agrees to indemnify  and hold  harmless  the Company,  each
director of the  Company,  each officer of the Company who shall have signed any
registration  statement  covering  Underwriters'  Securities held by the Holder,
each other  person,  if any,  who  controls  the  Company  within the meaning of
Section 15 of the Act or Section  20(a) of the  Exchange  Act,  and its or their
respective  counsel,  to the same  extent as the  foregoing  indemnity  from the
Company to the Holder in Section  10(a),  but only with respect to statements or
omissions, if any, made in any registration  statement,  preliminary prospectus,
or final  prospectus  (as from time to time  amended and  supplemented),  or any
amendment or supplement thereto, or in any application,  in reliance upon and in
conformity with written information furnished to the Company with respect to the
Holder  by or on  behalf  of the  Holder  expressly  for  inclusion  in any such
registration  statement,  preliminary  prospectus,  or final prospectus,  or any
amendment or supplement thereto,  or in any application,  as the case may be. If
any  action  shall be  brought  against  the  Company  or any  other  person  so
indemnified based on any such registration statement, preliminary prospectus, or
final prospectus, or any amendment or supplement thereto, or in any application,
and in respect of which  indemnity' may be sought against the Holder pursuant to
this  Section  10(b),  the Holder  shall have the rights and duties given to the
Company,  and the Company and each other  person so  indemnified  shall have the
rights and duties given to the indemnified parties, by the provisions of Section
10(a).

     (c) To provide for just and equitable  contribution,  if (i) an indemnified
party  makes a claim for  indemnification  pursuant  to  Section  10(a) or 10(b)
(subject  to the  limitations  thereof)  but it is  found  in a  final  judicial
determination,  not subject to further appeal, that such indemnification may not
be enforced in such case,  even though this  Agreement  expressly  provides  for
indemnification  in such case, or (ii) any  indemnified  or  indemnifying  party
seeks  contribution  under the Act,  the  Exchange  Act or  otherwise,  then the
Company (including for this purpose any contribution made by or on behalf of any
director  of the  Company,  any  officer  of the  Company  who  signed  any such
registration statement,  any controlling person of the Company, and its or their
respective   counsel),   as  one  entity,   and  the  Eligible  Holders  of  the
Underwriters'   Securities  included  in  such  registration  in  the  aggregate
(including for this purpose any  contribution  by or on behalf of an indemnified
party), as a second entity, shall contribute to the losses, liabilities, claims,
damages,  and expenses  whatsoever  to which any of them may be subject,  on the
basis of relevant  equitable  considerations  such as the relative  fault of the
Company and such Eligible Holders in connection with the facts which resulted in
such losses, liabilities,  claims, damages, and expenses. The relative fault, in
the case of an untrue statement, alleged untrue statement,  omission, or alleged
omission,  shall be determined by, among other things,  whether such  statement,
alleged statement, omission, or alleged omission relates to information supplied
by the Company or by such Eligible  Holders,  and the parties'  relative intent,
knowledge,  access to  information,  and  opportunity to correct or prevent such
statement, alleged statement, omission, or alleged omission. The Company and the
Holder  agree  that  it  would  be  unjust  and  inequitable  if the  respective
obligations  of the  Company and the  Eligible  Holders  for  contribution  were
determined  by pro  rata  or per  capita  allocation  of the  aggregate  losses,
liabilities,  claims,  damages,  and expenses  (even if the Holder and the other
indemnified parties were treated as one entity for such purpose) or by any other
method of allocation that does not reflect the equitable considerations referred
to in this Section  10(c).  In no case shall any Eligible  Holder be responsible
for a portion of the  contribution  obligation of all Eligible Holders in excess
of its pro rata share  based on the number of shares of Common  Stock  owned (or
which would be owned upon exercise of all  Underwriters'  Securities)  by it and
included  in such  registration  as  compared  to the number of shares of Common
Stock  owned  (or  which  would  be owned  upon  exercise  of all  Underwriters'
Securities) by all Eligible Holders and included in such registration. No person
guilty of a fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution  from any person who is not guilty of
such  fraudulent  misrepresentation.  For purposes of this Section  10(c),  each
<PAGE>
person,  if any, who controls any Eligible  Holder within the meaning of Section
15 of the Act or Section 20(a) of the Exchange Act and each  officer,  director,
partner,  employee,  agent,  and counsel of each such Eligible Holder or control
person shall have the same rights to  contribution  as such  Eligible  Holder or
control  person and each person,  if any,  who  controls the Company  within the
meaning  of Section 15 of the Act or Section  20(a) of the  Exchange  Act,  each
officer of the Company who shall have  signed any such  registration  statement,
each director of the Company, and its or their respective counsel shall have the
same  rights  to  contribution  as the  Company,  subject  in  each  case to the
provisions of this Section 10(c). Anything in this Section 10(c) to the contrary
notwithstanding,  no party shall be liable for contribution  with respect to the
settlement of any claim or action  effected  without its written  consent.  This
Section 10(c) is intended to supersede any right to contribution  under the Act,
the Exchange Act or otherwise.

     10. Unless registered  pursuant to the provisions of Section 9 hereof,  the
Representative's Shares issued upon exercise of the Warrants shall be subject to
a stop  transfer  order and the  certificate  or  certificates  evidencing  such
Warrant Shares shall bear the following legend:

     "THE WARRANTS REPRESENTED BY THIS CERTIFICATE [AND THE SHARES ISSUABLE
      UPON EXERCISE THEREOF] HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, AND ARE "RESTRICTED SECURITIES" AS THAT TERM
       IS DEFINED IN RULE 144 UNDER THE ACT. THE SHARES MAY NOT BE OFFERED
          FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
       EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, THE AVAILABILITY OF
         WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.
<PAGE>
     11.  Upon  receipt of  evidence  satisfactory  to the  Company of the loss,
theft,  destruction,  or  mutilation  of any Warrant (and upon  surrender of any
Warrant  if  mutilated),  and upon  reimbursement  of the  Company's  reasonable
incidental  expense,  and  execution of such form of lost Warrant  affidavit and
indemnity as the Company shall reasonably require, the Company shall execute and
deliver  to  the  Holder  thereof  a  new  Warrant  of  like  date,  tenor,  and
denomination.

     12. The  Holder of any  Warrant  shall not have,  solely on account of such
status, any rights of a stockholder of the Company,  either at law or in equity,
or to any notice of meetings of stockholders or of any other  proceedings of the
Company, except as provided in this Warrant.

     13. This  Warrant  shall be construed  in  accordance  with the laws of the
State of New York applicable to contracts made and performed  within such State,
without regard to principles of conflicts of law.

Dated: ____________, 2000

                                        HARBOUR ENTERTAINMENT, INC.

                                        By:____________________________________
                                        Marlowe Walker
                                        President and Chief Executive Officer

[Seal]

<PAGE>
FORM OF ASSIGNMENT

(To be executed by the registered  holder if such holder desires to transfer the
attached Warrant.)

     FOR VALUE RECEIVED,  hereby sells, assigns, and transfers unto ____________
a Warrant to purchase _______ shares of Common Stock, par value $.001 per share,
of Harbour Entertainment,  Inc. (the "Company"), together with all right, title,
and  interest  therein,  and does  hereby  irrevocably  constitute  and  appoint
__________________________ attorney to transfer such Warrant on the books of the
Company, with full power of substitution.

Dated:  ____________________

                                Signature___________________________________

                                     NOTICE

     The signature on the foregoing  Assignment  must  correspond to the name as
written upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever.
<PAGE>
To:     Harbour Entertainment, Inc.
        100A Gary Way
        Ronkonkoma, New York 11779

                              ELECTION TO EXERCISE

     The  undersigned  hereby  exercises  his or its rights to  purchase  ______
Representative's  Shares  covered  by the within  Warrant  and  tenders  payment
herewith in the amount of $____________in accordance with the terms thereof, and
requests  that  certificates  for such  securities be issued in the name of, and
delivered to:

_________________________________________

_________________________________________

_____________________________________________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and,  if  such  number  of   Representative's   Shares  shall  not  be  all  the
Representative's  Shares covered by the within  Warrant,  that a new Warrant for
the  balance of the  Representative's  Shares  covered by the within  Warrant be
registered  in the name of, and  delivered  to, the  undersigned  at the address
stated below.

Dated:_____________________________             Name____________________________
(Print)

Address:___________________________

                                          ______________________________________
                                                    (Signature)

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