Document:

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EXHIBIT 10.27

                               WARRANT CERTIFICATE

         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
         OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
         OPINION OF COUNSEL, SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY,
         THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.

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

                            EXERCISABLE ON OR BEFORE
                  5:00 P.M, NEW YORK TIME ON DECEMBER 31, 2003

NO. W-001F

          257,950             Common Stock
                              Warrants

         This Warrant Certificate certifies that First London Securities
Corporation or registered assigns, is the registered holder (the "Holder") of
Common Stock Warrant of 800 Travel Systems, Inc. (the "Company"). Each Common
Stock Warrant permits the Holder to purchase initially, at any time from the
later to occur of (i) the date that the original Replacement Warrant Certificate
is delivered to the Company for cancellation, and (ii) March 13, 2001 (the
"Issue Date") until 5:00 p.m. New York Time on December 31, 2003 (the
"Expiration Time"), one share of the Company's Common Stock at the initial
exercise price, subject to adjustment in certain events (the "Share Exercise
Price"), of $1.5625 per share.

         Any exercise of the Common Stock Warrants shall be effected by
surrender of this Warrant Certificate and payment of the exercise price thereof
at an office or agency of the Company, but subject to the conditions set forth
herein and in the Warrant Agreement dated as of March 13, 2001, between the
Company and First London Securities Corporation (the "Warrant Agreement").
Payment of the exercise price, in the event there is no cashless exercise
pursuant to Section 3.1(b) of the Warrant Agreement, shall be made by cash, wire
transfer, certified check or official bank check in New York Clearing House
funds payable to the order of the Company. The Common Stock Warrants are
referred to as "Warrants".

         No Warrant may be exercised after the Expiration Time, at which time
all Warrants evidenced hereby, unless exercised prior thereto, hereby shall
thereafter be void.

         The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement, which
Warrant Agreement is hereby incorporated by reference in and made a part of this
instrument and is hereby referred to for a description of the rights, limitation
or rights, obligations, duties and immunities thereunder of the Company and the
holders (the words "holders" or "holder" meaning the registered holders or
registered holder) of the Warrants. A copy of the Warrant Agreement will be
provided to the Holder of this Warrant upon written request to the Secretary of
the Company at 4802 Gunn Highway, Suite 140, Tampa, Florida 33624.

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

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

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

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

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

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

Dated as of March 13, 2001
                                800 TRAVEL SYSTEMS, INC.

                                By:
                                    --------------------------------------------
                                     Peter M. Sontag, Chief Executive Officer
 (Seal)

Attest:

-------------------------
Robert Morgan, Secretary

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                                WARRANT AGREEMENT

         THIS WARRANT AGREEMENT (the "New Warrant Agreement"), dated as of March
13, 2001 between 800 TRAVEL SYSTEMS, INC. (the "Company"), and FIRST LONDON
SECURITIES CORPORATION (the "Representative").

                              W I T N E S S E T H:

         WHEREAS, the Representative has acted, pursuant to that certain
underwriting agreement by and between the Company and the Representative (the
"Underwriting Agreement"), as the representative of the Underwriters in
connection with the Company's initial public offering on January 21, 1998 (the
"Public Offering") of 1,850,000 shares of the Company's common stock, par value
$.01 per share (the "Common Stock"), at $5.00 per share and 1,850,000 Redeemable
Common Stock Purchase Warrants (the "Public Warrants") at $.125 per warrant; and

         WHEREAS, the Company issued to the Representative 87,750 warrants
("Common Stock Representative Warrants") to purchase 87,750 shares of Common
Stock and 175,500 warrants ("Warrant Representative Warrants") to purchase
175,500 Common Stock Purchase Warrants (the "Underlying Warrants") exercisable
to purchase 175,000 shares of Common Stock (the "Underlying Warrant Shares")
pursuant to that certain Warrant Certificate ("Original Warrant Certificate")
and subject to that certain Warrant Agreement (the "Original Warrant
Agreement"), each dated January 21, 1998, as part of the compensation paid to
the Representative in connection with its acting as representative pursuant to
the Underwriting Agreement.

         WHEREAS, on or about December 1998, the Representative attempted to
exercise and sell the Original Warrants; and

         WHEREAS, on or about September 1999, the Representative transferred
70,200 of the Warrant Representative Warrants and 35,100 of the Common Stock
Representative Warrants to Mr. Jesse Shelmire and the Original Warrant
Certificate was replaced with two separate Warrant Certificates, one to the
Representative (the "Replacement Warrant Certificate") and one to Mr. Shelmire;
and

         WHEREAS, on March 24, 2000 the Representative filed an action against
the Company in the 134th District Court of Dallas County, Texas (the "Action")
asserting various breach of contract claims against the Company based upon the
Original Warrant Agreement and the Underwriting Agreement and arising from the
attempted exercise of the Original Warrant Agreement in December 1998; and

         WHEREAS, the Representative and the Company have agreed to settle the
Action pursuant to the settlement agreement (the "Settlement Agreement") dated
of even date herewith and as part thereof the Replacement Warrant Certificate
shall be returned to the Company and canceled and this New Warrant Agreement is
being entered into by the Company and the Representative and new warrant
certificate (the "New Warrant Certificates") issued;

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         NOW, THEREFORE, in consideration of the premises, the agreements herein
set forth and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

         1.       Grant and Period.

         Pursuant to the New Warrant Certificates, the Representative is hereby
granted the right to purchase from the Company, at any time during the period
commencing February ___, 2001 (the "Issue Date") and expiring at 5:00 New York
Time on December 31, 2003, (the "Expiration Time"), up to 257,950 shares of
Common Stock (the "Underlying Shares") at an initial exercise price (subject to
adjustment as provided in Article 8) of $1.5625 per share (the "Share Exercise
Price"), subject to the terms and conditions of this New Warrant Agreement.

         2.       New Warrant Certificates.

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

         3.       Exercise of Warrant.

         3.1      Full Exercise.

         (a) The Representative or any subsequently permitted transferee of a
New Warrant Certificate (each a "Holder") may effect a cash exercise of a New
Warrant Certificate by surrendering the New Warrant Certificate, together with a
Subscription in the form of EXHIBIT 1 attached thereto, duly executed by such
Holder, to the Company at any time prior to the Expiration Time, at the
Company's principal office, accompanied by payment, by wire transfer or by
certified or official bank check payable to the order of the Company in the
amount of the aggregate purchase price of such Underlying Shares, subject to any
adjustments provided for in this New Warrant Agreement. The aggregate purchase
price hereunder for each Holder shall be equal to the initial exercise price for
such Underlying Shares (subject to adjustment as provided in Article 8)
multiplied by the number of Underlying Shares that are the subject of each
Holder's New Warrant Certificate (as may be adjusted as hereinafter provided).

         (b) A Holder may effect a cashless exercise of a New Warrant
Certificate by delivering the New Warrant Certificate to the Company together
with a Subscription in the form of EXHIBIT 2 attached thereto, duly executed by
such Holder, in which case no payment of cash will be required. Upon such
cashless exercise, the number of Underlying Shares to be delivered to the Holder
shall be equal to the number determined by dividing: (i) the number obtained by
multiplying the number of Underlying Shares that are the subject of each
Holder's New Warrant Certificate (or such number of shares subject to a cashless
exercise as specified by the Holder in EXHIBIT 2) by the difference between (1)
the Market Value (as hereafter defined), minus (2) the Share Exercise Price; by

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(ii) the Market Value. The Market Value shall be the price of a share of the
Company's Common Stock as determined on a per share basis as follows: (x) if the
Common Stock is listed for trading on a national or regional stock exchange or
is included on the Nasdaq National Market or Small-Cap Market, the average of
the closing sale prices quoted on such exchange or the Nasdaq National Market or
Small-Cap Market, as published in The Wall Street Journal, for the thirty
trading days immediately preceding the date of exercise; or (y) if the Common
Stock is not so listed, admitted to trading or included, the midpoint between
the average of the midpoint between the highest reported closing bid and lowest
reported closing ask prices as quoted on the National Association of Securities
Dealer's OTC Bulletin Board or in the "pink sheets" published by the National
Daily Quotation Bureau for the thirty trading days immediately preceding the
date of exercise. If at any time the Common Stock is not listed on any domestic
securities exchange or quoted in the NASDAQ System or the domestic
over-the-counter market, the "Market Value" shall be the fair value thereof as
determined by the Company's Board of Directors.

         3.2      Partial Exercise.

         A New Warrant Certificate referred to in Section 3.1 above also may be
exercised from time to time in part by surrendering the New Warrant Certificate
in the manner specified in Section 3.1, except that with respect to a cash
exercise, the purchase price payable with respect to such exercise shall be
equal to the number of Underlying Shares being purchased multiplied by the
exercise price for such Underlying Shares, subject to any adjustments provided
for in this New Warrant Agreement. Upon any such partial exercise, the Company
will, as soon as practicable, issue to the Holder hereof in its name a new
Warrant Certificate or Warrants of like tenor for the number of securities for
which the New Warrant Certificate shall not have been exercised.

         3.3      Exercise Date.

         Subscriptions in the form of EXHIBITS 1 OR 2 must be received by the
Company within twenty-four hours of the date of exercise, which date shall be
set forth on such form of Subscriptions (the "Exercise Date"). No exercise shall
be valid or effective unless such properly prepared form of Subscription is
received by the Company within such twenty-four hour time period following the
Exercise Date.

         4.       Issuance of Certificates.

         Upon the exercise of the New Warrant Certificates, the issuance of
certificates for the Underlying Shares shall be effected as promptly as
practicable and without charge to the Holder thereof including, without
limitation, any tax which may be payable in respect of the issuance thereof, and
such certificates shall (subject to the provisions of Articles 5 and 7) be
issued in the name of, or in such names as may be directed by, the Holder
thereof; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and
delivery of any such certificates in a name other than that of the Holder and
the Company shall not be required to issue or deliver such certificates unless
or until the person or persons requesting the issuance thereof shall have paid
to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

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         The New Warrant Certificates and the certificates representing the
shares of Common Stock shall be duly executed on behalf of the Company and dated
the date of execution by the Company upon initial issuance, division, exchange,
substitution or transfer.

         5.       Restriction On Exercise and Transfer of the New Warrant
                  Certificates.

         The Holder of a New Warrant Certificate, by acceptance thereof,
covenants and agrees that the Warrants may not be sold, transferred, assigned,
hypothecated or otherwise disposed of, in whole or in part without the prior
written consent of the Company, which may be withheld in its sole discretion and
without reason, or by operation of law. The Holder of a New Warrant Certificate
by acceptance thereof, covenants and agrees that the New Warrant Certificates
may not be exercised until such time as a registration statement covering the
resale of the Underlying Shares has been declared effective by the United States
Securities and Exchange Commission (the "Commission"). The Holder further agrees
that any exercise of a New Warrant Certificate will result in the issuance of
restricted Common Stock to the Holder, except in the event that the Holder
exercises utilizing the cashless exercise provision at least two years after the
Issue Date.

         6.       Exercise Price.

         6.1      Initial and Adjusted Exercise Prices.

         The initial Share Exercise Price of each Warrant shall be $1.5625 per
share. The adjusted exercise price of any Warrant Certificate shall be the price
which shall result from time to time from any and all adjustments of the initial
exercise price in accordance with the provisions of Article 8. The Warrants are
exercisable during the period commencing on the Issue Date and ending on
December 31, 2003.

         6.2      Exercise Price.

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

         7.       Registration Rights.

         7.1      Restrictive Legend.

         The New Warrant Certificate and the Underlying Shares have not been
registered under the Securities Act of 1933, as amended (the "Act"). The New
Warrant Certificate shall bear the following restrictive legend:

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         THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD,
         OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE
         ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
         OPINION OF COUNSEL, SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY,
         THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.

Upon exercise, in part or in whole, of a New Warrant Certificate, certificates
representing the Underlying Shares shall also bear the restrictive legend set
forth above.

         7.2      Registration Under the Securities Act of 1933.

         (a) The Company agrees to use its reasonable efforts to prepare and
file with the Commission, at the sole expense of the Company, on one occasion, a
registration statement and/or such other documents, including a prospectus,
and/or any other appropriate disclosure document (the "Registration Statement")
as may be reasonably necessary in the opinion of the Company and its counsel, in
order to comply with the provisions of the Act, so as to permit the resale of
Underlying Shares of Common Stock issuable upon exercise of the New Warrant
Certificate (the "Registrable Securities") by the Representative. The Company
agrees (subject to its suspension rights set forth below) to use its reasonable
efforts to maintain the effectiveness of the Registration Statement for the
Representative until the first anniversary of the Issue Date or when all
Registrable Securities included therein have been sold, if earlier.

         The Representative covenants and agrees to cooperate with the Company
in the preparation and filing of the Registration Statement, to provide all such
information and materials concerning the Representative and take all such action
as may be reasonably required to permit the Company to comply with all
applicable requirements of the Commission and to obtain acceleration of the
effective date of the Registration Statement, and that the Registration
Statement shall not be used for the resale of the Underlying Shares of Common
Stock more than one year after the Issue Date.

         (b) Notwithstanding the foregoing, the Company may delay filing the
Registration Statement, and may withhold efforts to cause the Registration
Statement to become effective, if the Company determines in good faith that such
registration might (1) interfere with or affect the negotiation or completion of
any transaction that is being contemplated by the Company (whether or not a
final decision has been made to undertake such transaction) at the time the
right to delay is exercised, or (2) involve initial or continuing disclosure
obligations that might not be in the best interest of the Company's
stockholders. If after the Registration Statement becomes effective, the Company
advises the holders of the Registerable Securities that the Company considers it
appropriate for the Registration Statement to be amended or suspended, the
holders of such Registrable Securities shall suspend any further sales of their
Registrable Securities until the Company advises them that the Registration
Statement has been amended or the suspension has been lifted.

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         (c) The Representative covenants and agrees to provide the Company with
twenty-four hour prior written notice of its intent to sell any Registrable
Securities using the Registration Statement so that the Company may properly
exercise its suspension rights in Section 7.2(b). The Representative further
covenants and agrees to cooperate with the Company in consummating a sale using
the Registration Statement and having the Company's transfer agent issue any
shares of common stock upon the proper exercise of a New Warrant Certificate as
herein set forth to the Representative or a third party purchaser of any
Registrable Securities.

         7.3      Covenants of the Company With Respect to Registration.

         In connection with any registration under Section 7.2, the Company
covenants and agrees as follows:

         (a) The Company shall use its best efforts to file the Registration
Statement and to have the Registration Statement declared effective at the
earliest practicable time, subject to the provisions of Section 7.2(b). The
Company will promptly notify each seller of such Registrable Securities, and
confirm such advice in writing, (i) when the Registration Statement becomes
effective, (ii) when any post-effective amendment to such registration statement
becomes effective, and (iii) of any request by the SEC for any amendment or
supplement to the Registration Statement or any prospectus relating thereto or
for additional information.

         The Company shall furnish to the Representative such number of copies
of the Registration Statement and of each such amendment and supplement thereto
(in each case including the prospectus) in conformity with the requirements of
the Act, and such other documents as such Holder may reasonably request in order
to facilitate the disposition of the Registrable Securities.

         (b) The Company shall prepare and file with the SEC such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith as may be reasonably necessary to keep the Registration Statement
effective until the first anniversary of the Issue Date, and to comply with the
provisions of the Act with respect to the disposition of all securities covered
by the Registration Statement during such period in accordance with the intended
methods of disposition by the seller or sellers of Registrable Securities set
forth in such registration statement. If at any time the SEC should institute or
threaten to institute any proceedings for the purpose of issuing a stop order
suspending the effectiveness of the Registration Statement, the Company will
promptly notify each seller of such Registrable Securities and will use all
reasonable efforts to prevent the issuance of any such stop order or to obtain
the withdrawal thereof as soon as possible.

         (c) The Company shall indemnify the Representative against all loss,
claim, damage, expense or liability (including all expenses reasonably incurred
in investigating, preparing or defending against any claim whatsoever) to which
it may become subject under the Act, the Exchange Act or otherwise, arising
solely from information in the Registration Statement provided by the Company.

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         (d) The Representative and its permitted successors and assigns shall
jointly and severally indemnify the Company, its officers and directors and each
person, if any, who controls the Company within the meaning of Section 15 of the
Act or Section 20(a) of the Exchange Act, against all loss, claim, damage or
expense or liability (including all expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which
they may become subject under the Act, the Exchange Act or otherwise, arising
from written information furnished by such Holder, or their successors or
assigns, for specific inclusion in the Registration Statement. The
Representative further agrees to indemnify and hold the Company harmless from
any loss, claim, damage, expense or liability arising from any delay in having
issued or issuing the Underlying Shares to the Representative upon exercise or
to any third party purchaser of any Registrable Securities under the
Registration Statement.

         8.       Adjustments to Exercise Price and Number of Securities.

         8.1      Adjustment for Dividends, Subdivisions, Combinations or
                  Reclassification.

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

         8.2      Adjustment For Reorganization, Merger or Consolidation.

         In case of any reorganization of the Company or consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental warrant agreement providing that the Holder of each
New Warrant Certificate, then outstanding or to be outstanding, shall have the
right thereafter (until the expiration of such New Warrant Certificate) to
receive, upon exercise of such New Warrant Certificate, the kind and amount of
shares of stock and other securities and property receivable upon such
consolidation or merger, by a holder of the number of shares of Common Stock of
the Company for which such New Warrant Certificate might have been exercised

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immediately prior to such reorganization, consolidation, merger, conveyance,
sale or transfer. Such supplemental warrant agreement shall provide for
adjustments which shall be identical to the adjustments provided in Section 8.1
and such other rights as provided in this New Warrant Agreement. The Company
shall not effect any such consolidation, merger, or similar transaction as
contemplated by this Section 8.2, unless in connection with the consummation
thereof, the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing, receiving, or
leasing such assets or other appropriate corporation or entity shall assume, by
written instrument, the obligation to deliver to the Holders, such shares of
stock, securities, or assets as, in accordance with the foregoing provisions,
such holders may be entitled to purchase, and to perform the other obligations
of the Company under this New Warrant Agreement. The above provision of this
Section shall similarly apply to successive consolidations or successively
whenever any event listed above shall occur.

         8.3      No Adjustment of Share Exercise Price in Certain Cases.

         No adjustment of the Share Exercise Price shall be made if the amount
of said adjustment would be less than $.06; provided, however, that in any such
case any adjustment that would otherwise be required then to be made shall be
carried forward and shall be made at the time of and together with the next
subsequent adjustment which, together with any adjustment so carried forward,
shall amount to at least $.06.

         8.4      Certificate of Adjustment.

         In each case of an adjustment or readjustment of the Share Exercise
Price, or the number of Underlying Shares issuable upon exercise of the New
Warrant Certificates, the Company, at its expense, shall compute such adjustment
or readjustment in accordance herewith and prepare a certificate showing such
adjustment or readjustment, and shall mail such certificate, by first class
mail, postage prepaid, to any Holder of the New Warrant Certificates, as the
case may be, at the Holder's address as shown on the Company's books. The
certificate shall set forth such adjustment or readjustment, showing in detail
the facts upon which such adjustment or readjustment is based including, but not
limited to, a statement of (i) the Share Exercise Price at the time in effect,
and (ii) the number of additional Underlying Shares and the type and amount, if
any, of other property which at the time would be received upon exercise of the
New Warrant Certificates.

         9.       Exchange and Replacement of New Warrant Certificates.

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

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

         10.      Elimination of Fractional Interest.

         The Company shall not be required to issue certificates representing
fractions of shares of Common Stock upon the exercise of the New Warrant
Certificates nor shall it be required to issue script or pay cash in lieu of
fractional interests, it being the intent of the parties that all fractional
interests may be eliminated, at the Company's option, by rounding any fraction
down to the nearest whole number of shares of Common Stock or other securities,
properties or rights, or in lieu thereof applying the value of such fractional
interest to expenses associated with such certificate issuance.

         11.      Reservation.

         The Company shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of issuance upon the
exercise of the New Warrant Certificates, such number of shares of Common Stock
or other securities, properties or rights as shall be issuable upon the exercise
thereof. The Company covenants and agrees that, upon exercise of the New Warrant
Certificates, and payment of the exercise price therefor, all shares of Common
Stock and other securities issuable upon such exercise shall be duly and validly
issued, fully paid, non-assessable.

         12.      Notices to Warrant Holders.

         Nothing contained in this Agreement shall be construed as conferring
upon the Holders of the New Warrant Certificates the right to vote or to consent
or to receive notice as a stockholder in respect of any meetings of
stockholders, for the election of directors or any other matter, or as having
any rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the New Warrant Certificates and their exercise, any
of the following events shall occur:

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

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

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

         13.      Notices.

         All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly given when personally
delivered, or mailed by registered or certified mail, return receipt requested:

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

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

                                              800 Travel Systems, Inc.
                                              4802 Gunn Highway
                                              Tampa, Florida 33624
                                              Attention: CEO

              With a copy to:                 Shumaker, Loop & Kendrick, LLP
                                              101 E. Kennedy Blvd., Suite 2800
                                              Tampa, Florida 33602
                                              Attention:       Mark A. Catchur

         14.      Entire Agreement: Modification.

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

                                       12
<PAGE>

         15.      Successors; Assignment.

         This New Warrant Agreement may not be assigned, and the New Warrant
Certificates may not be assigned by the Holder without the written consent of
the Company, which may be withheld in its absolute discretion. All the covenants
and provisions of this Agreement shall be binding upon and inure to the benefit
of the Company, the Holders and their respective permitted successors and
assigns hereunder.

         16.      Termination.

         This Agreement shall terminate at 5:00 New York Time on December 31,
2003. Notwithstanding the foregoing, the indemnification provisions of Section 7
shall survive such termination.

         17.      Governing Law; Submission to Jurisdiction.

         This New Warrant Agreement and each New Warrant Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be construed in accordance with the laws of
said State without giving effect to the rules of said State governing the
conflicts of laws. The Company, the Representative and the Holders hereby agree
that any action, proceeding or claim arising out of, or relating in any way to,
this Agreement shall be brought and enforced in a federal or state court of
competent jurisdiction with venue only in the Circuit Court in and for the 13th
Judicial Circuit in Hillsborough, County, Florida or the United States District
Court for the Middle District of Florida, and irrevocably submits to such
jurisdiction, which jurisdiction shall be exclusive. The Company, the
Representative and the Holders hereby irrevocably waive any objection to such
exclusive jurisdiction or inconvenient forum. Any such process or summons to be
served upon any of the Company, the Representative and the Holders (at the
option of the party bringing such action, proceeding or claim) may be served by
transmitting a copy thereof, by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section
13 hereof. Such mailing shall be deemed personal service and shall be legal and
binding upon the party so served in any action, proceeding or claim.

         18.      Severability.

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

         19.      Captions.

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

                                       13
<PAGE>

         20.      Benefits of this New Warrant Agreement.

         Nothing in this New Warrant Agreement shall be construed to give to any
person or corporation other than the Company and the Representative and any
other registered Holder of the New Warrant Certificates or Registrable
Securities any legal or equitable right, remedy or claim under this New Warrant
Agreement; and this Agreement shall be for the sole and exclusive benefit of the
Company and the Representative and any other registered Holder of the New
Warrant Certificates (except Section 7, which applies exclusively to the
Representative.)

         21.      Counterparts.

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

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

                                     800 TRAVEL SYSTEMS, INC.

                                     By:
                                        ----------------------------------------
                                        Peter M. Sontag, Chief Executive Officer
Attest:

__________________
__________________, Secretary

                                     FIRST LONDON SECURITIES CORPORATION

                                     By:
                                        --------------------------------
                                        Douglas R. Nichols, President

                                       14
<PAGE>

                                    EXHIBIT 1

                      FORM OF SUBSCRIPTION (CASH EXERCISE)

                  (To be signed only upon exercise of Warrant)

TO:      800 Travel Systems, Inc.
         4802 Gunn Highway
         Tampa, Florida 33624

         The undersigned, the Holder of Warrant Certificate number _____________
(the "Warrant"), representing ________________ Common Stock Warrants of 800
Travel Systems, Inc. (the "Company"), which Warrant Certificate is being
delivered herewith, hereby irrevocably elects to exercise the purchase right
provided by the Warrant Certificate for, and to purchase thereunder, __________
Shares of the Common Stock of the Company, and herewith makes payment of
$___________________ therefor, and requests that the certificates for such
securities be issued in the name of, and delivered
to,_______________________________ whose address is
______________________________________________ all in accordance with the
Warrant Agreement and the Warrant Certificate. The undersigned acknowledges and
agrees that an exercise of the Warrant hereby shall not be effective if (i) this
Form of Subscription is not received by the Company within twenty-four hours of
the Exercise Date, (ii) no cash payment is included or the amount of the cash
payment is not properly computed, or (iii) the Original Warrant Certificate is
not included.

Exercise Date:
              ------------------------------

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

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

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

                                    (Address)

                                       15
<PAGE>

                                    EXHIBIT 2

                    FORM OF SUBSCRIPTION (CASHLESS EXERCISE)

TO:      800 Travel Systems, Inc.
         4802 Gunn Highway
         Tampa, Florida 33624

         The undersigned, the Holder of Warrant Certificate number ___________
(the "Warrant"), representing ___________________ Common Stock Warrants of 800
Travel Systems, Inc. (the "Company"), which Warrant is being delivered herewith,
hereby irrevocably elects the cashless exercise of the purchase right provided
by the Warrant Agreement and the Warrant Certificate using ______ Underlying
Shares for, and to purchase thereunder, _____ shares of restricted Company
Common Stock (the "Issuable Common Shares") in accordance with Section 3 of the
Warrant Agreement based upon a Market Value of ___________ determined as set
forth on the attached Schedule 1, including supporting calculations (if
necessary). The undersigned requests that the certificates for such Issuable
Common Stock be issued in the name of, and delivered to,
_____________________________ whose address is,
________________________________________ and the balance of the unexercised
portion of the Warrant, if any, exercisable for _____ Underlying Shares
recertificated and delivered to ________________, whose address is
_________________________ all in accordance with the Warrant Certificate. The
undersigned acknowledges and agrees that an exercise of the Warrant hereby shall
not be effective if (i) Schedule 1 is not attached or contains any error in the
calculation of Market Value, (ii) Schedule 1 fails to set forth in sufficient
detail the calculation of Market Value, (iii) this Form of Subscription is not
received within twenty-four hours of the Exercise Date, or (iv) the Original
Warrant Certificate is not included.

Exercise Date:
              ------------------------------

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

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

                                       16
<PAGE>

                              (FORM OF ASSIGNMENT)

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

           FOR VALUE RECEIVED hereby sells, assigns and transfers unto

                     (Print name and address of transferee)

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

Dated:________________________
Signature:

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

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

                                       17<PAGE>

                                                                     EXHIBIT 4.7

                              RETRAC MEDICAL, INC.

                                       AND

                           COMPUTERSHARE TRUST COMPANY

                                as Warrant Agent

                                WARRANT AGREEMENT
                          Dated as of ___________, 2001

<PAGE>

                               TABLE OF CONTENTS*
                                                                          Page
                                                                          ----

Parties.....................................................................
Recitals....................................................................
Section  1.  Appointment of Warrant Agent...................................
Section  2.  Purchase Price; Form of Warrant Certificate....................
Section  3.  Registration and Countersignature..............................
Section  4.  Registration of Transfers and Exchanges........................
Section  5.  Duration and Exercise of Warrants..............................
Section  6.  Call of Warrants for Redemption................................
Section  7.  Payment of Taxes...............................................
Section  8.  Mutilated or Missing Warrant Certificates......................
Section  9.  Reservation of Common Stock, etc...............................
Section 10.  Obtaining of Governmental Approvals............................
Section 11.  Adjustments to Purchase Price and Number of Warrants...........
Section 12.  Fractional Warrants............................................
Section 13.  Notice to Warrant Holders......................................
Section 14.  Disposition of Proceeds on Exercise of Warrants, etc...........
Section 15.  Merger or Consolidation or Change of Name of Warrant Agent.....
Section 16.  Duties of Warrant Agent........................................
Section 17.  Change of Warrant Agent........................................
Section 18.  Identity of Transfer Agent.....................................
Section 19.  Notices........................................................
Section 20.  Supplements and Amendments.....................................
Section 21.  Successors.....................................................
Section 22.  Registration of Shares of Common Stock.........................
Section 23.  Termination....................................................
Section 24.  Governing Law..................................................
Section 25.  Benefits of This Agreement.....................................
Section 26.  Counterparts...................................................
Testimonium.................................................................
Signature and Seals.........................................................
Acknowledgments.............................................................
Exhibit A (Form of Common Stock Purchase Warrant Certificate,
  Election to Purchase and Assignment)

*        This Table of Contents does not constitute a part of this Agreement or
         have any bearing upon the interpretation of any of its terms or
         provisions.

<PAGE>

                                WARRANT AGREEMENT
                                -----------------

         THIS WARRANT AGREEMENT ("Agreement") is entered into as of , 2001 by
and between RETRAC MEDICAL, INC. a Delaware corporation ("Company"), and
COMPUTERSHARE TRUST COMPANY a ___________ corporation, as warrant agent
("Warrant Agent").

                                 R E C I T A L S
                                 ---------------

         A. The Company proposes to issue and sell up to 3,125,000 units
("Units") consisting of (i) one (1) share of the Company's $.01 par value common
stock, (such common stock and, where appropriate, such other securities or
assets purchasable upon the exercise of a Warrant (as defined below) as provided
for herein in the event of a reorganization, reclassification, consolidation,
merger or sale, collectively "Common Stock"), and (ii) one (1) common stock
purchase warrant ("Warrant"). The offering price for each Unit is Eight Dollars
($8.00). Each Warrant entitles the holder to purchase one (1) share of Common
Stock at an exercise price of Eight and 80/100 Dollars ($8.80), commencing upon
the date of the final Prospectus which is a part of the amended Registration
Statement filed with respect to such Units and declared effective pursuant to
the Securities Act of 1933, as amended, on , 2001 (the "Effective Date"), and
expires five (5) years after the Effective Date, unless such period is extended
by the Company.

         B. The Warrants included in the Units proposed to be sold by the
Company will be evidenced by a warrant certificate (such certificates and other
certificates issued pursuant hereto and evidencing Warrants ("Warrant
Certificate"), which will be detachable from the Common Stock included in the
Units, and will be immediately transferable separately from the Common Stock
included in the Units.

         C. The Company wishes to engage the Warrant Agent to act on behalf of
the Company, and the Warrant Agent is willing so to act, in connection with the
issuance, registration, registration of transfer and exchange of Warrant
Certificates and the exercise of Warrants.

                                A G R E E M E N T
                                -----------------

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:

         SECTION 1. APPOINTMENT OF WARRANT AGENT. The Company hereby appoints
the Warrant Agent to act as agent for the Company in accordance with the
instructions hereinafter in this Agreement set forth, and the Warrant Agent
hereby accepts such appointment.

         SECTION 2. PURCHASE PRICE; FORM OF WARRANT CERTIFICATE. The Warrant
Certificates shall be in registered form only. The text of the Warrant
Certificates and of the form of election to exercise to be printed on the
reverse thereof shall be substantially as set forth in Exhibit A attached
hereto.

<PAGE>

         Each Unit issued pursuant to the Underwriting Agreement will have a
common stock certificate and a Warrant Certificate, each registered in the name
of the registered holder, evidencing Warrants at the rate of one (1) Warrant for
each one (1) shares of Common Stock included in each Unit, subject to adjustment
as provided in Section 11.

         Each Warrant shall entitle the holder thereof to purchase one (1) share
of Common Stock upon the exercise thereof. The purchase price payable upon
exercise of a Warrant ("Purchase Price") shall be, unless and until adjusted as
provided in Section 11, Eight and 80/100 Dollars ($8.80).

         The Purchase Price and the number of Warrants evidenced by each Warrant
Certificate are subject to adjustment upon the occurrence of certain events, as
hereinafter provided. Each Warrant may be exercised upon the Effective Date.

         Warrant Certificates may be exchanged and transferred separately from
Common Stock. The Warrant Certificates shall be executed on behalf of the
Company by the manual or facsimile signature of the present or any future
Chairman of the Board, President or Vice President of the Company, under its
corporate seal, affixed or in facsimile, attested by the manual or facsimile
signature of the present or any future Secretary or Assistant Secretary of the
Company.

         Warrant Certificates shall be dated the date of countersignature by the
Warrant Agent upon initial and subsequent issuances.

         Pending the preparation of definitive Warrant Certificates, the Company
may execute and the Warrant Agent shall countersign in lieu thereof temporary
Warrant Certificates, substantially in the form of the definitive Warrant
Certificates, but with such omissions, insertions and variations as may be
appropriate on temporary Certificates and as may be determined by the Board of
Directors of the Company ("Board of Directors"). Temporary Warrant Certificates
may be issued with such provisions with respect to exchanges of temporary
Warrant Certificates as may be determined by the Board of Directors and may
contain such references to provisions of the Warrant Agreement as may be
appropriate. Every temporary Warrant Certificate shall be executed by the
Company and be countersigned by the Warrant Agent upon the same conditions and
in substantially the same manner and with like effect as the definitive Warrant
Certificates. If temporary Warrant Certificates are issued, the Company shall
prepare and execute definitive Warrant Certificates without unnecessary delay,
and thereupon any and all temporary Warrant Certificates may be surrendered in
exchange therefor at the principal office of the Warrant Agent and the Warrant
Agent shall countersign and deliver in exchange for such temporary Warrant
Certificates definitive Warrant Certificates evidencing the number of Warrants
evidenced by the temporary Warrant Certificates so surrendered. Until so
exchanged, each temporary Warrant Certificate shall entitle the holder thereof
to the same rights and benefits as the holder of a definitive Warrant
Certificate.

         SECTION 3. REGISTRATION AND COUNTERSIGNATURE. The Warrant Agent shall
maintain books for the registration and registration of transfer of Warrant
Certificates. Upon the initial issuance of the Units of Common Stock and
Warrants, the Warrant Agent shall issue and register the Warrant Certificates in
the names of the respective registered holders and upon subsequent issuances of
Units of Common Stock and Warrants, the Warrant Certificates for such Warrants
shall be registered in the names of the respective registered holders. The
Warrant Certificates shall be countersigned by the Warrant Agent and shall not
be valid for any purpose unless so countersigned. Warrant Certificates shall be
so countersigned, however, by the Warrant Agent and be delivered by the Warrant
Agent, notwithstanding that the persons whose manual or facsimile signatures
appear thereon as proper officers of the Company shall have ceased to be such
officers at the time of such countersignature or delivery. Upon issuance of any
Warrant Certificate, the Company will present the same, or cause the same to be
presented, to the Warrant Agent for countersignature of such Warrant
Certificate.

<PAGE>

         Prior to due presentment for registration of transfer of the Warrant
Certificates, the Company and the Warrant Agent may deem and treat the
registered holder thereof as the absolute owner of the Warrant Certificates
(notwithstanding any notation of ownership or other writing thereon made by
anyone other than the Company or the Warrant Agent), for the purpose of any
exercise thereof and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary.

         SECTION 4. REGISTRATION OF TRANSFERS AND EXCHANGES. The Warrant Agent
shall from time to time register the transfer of any outstanding Warrant
Certificates upon the books to be maintained by the Warrant Agent for that
purpose, upon surrender thereof accompanied (if so required by the Company or
the Warrant Agent) by a written instrument or instruments of transfer in form
satisfactory to the Company and the Warrant Agent, duly executed by the
registered holder or by a duly authorized attorney and the transfer fee, payable
by the holder, of _____ Dollars __________ ($_____) for each transfer. Upon any
such registration of transfer, a new Warrant Certificate shall be issued to the
transferee and the surrendered Warrant Certificate shall be cancelled by the
Warrant Agent. Warrant Certificates so cancelled shall be delivered by the
Warrant Agent to the Company from time to time or otherwise disposed of by the
Warrant Agent in a manner satisfactory to the Company. Warrant Certificates are
detachable and they may be exchanged at the option of the holder thereof, when
surrendered at the principal office in ____________________, of the Warrant
Agent, for another Warrant Certificate or other Warrant Certificates of like
tenor and representing in the aggregate the number of Warrants evidenced by the
Warrant Certificate or Warrant Certificates so surrendered. The Warrant Agent
shall countersign and deliver, in accordance with the provisions of this Section
and of Section 3, the new Warrant Certificates required pursuant to the
provisions of this Section, and the Company, whenever required by the Warrant
Agent, will supply the Warrant Agent with Warrant Certificates duly executed on
behalf of the Company for such purpose.

         SECTION 5. DURATION AND EXERCISE OF WARRANTS.

                  A. The Warrants will expire at the close of business on ,
2006, unless extended by the Company, in which event the Warrants shall expire
upon the expiration of the period the Warrants are so extended, at which time
all rights evidenced by the Warrant Certificates shall cease and the Warrants
shall become void.

                  B. Subject to the provisions of this Agreement, the holder of
one (1) Warrant shall have the right to purchase from the Company (and the
Company shall issue and sell to such holder of one (1) Warrant) one fully paid
and non-assessable share of Common Stock at an initial Purchase Price set forth
in Section 2 hereof (subject to adjustment as provided in Section 11) upon
surrender of the Warrant Certificate evidencing such Warrant to the Company at
the principal office of the Warrant Agent in _______________, with the form of
election to purchase on the reverse thereof duly filled in and signed, and upon
payment of the Purchase Price in lawful money of the United States of America to
the Warrant Agent for the account of the Company. Except as set forth in Section
11 of this Agreement, no adjustment shall be made for any dividends on any share
of Common Stock issuable on the exercise of a Warrant.
<PAGE>

         The Purchase Price payable upon exercise of Warrants shall be paid in
cash or by certified check or bank draft.

         Subject to Sections 7 and 12, upon such surrender of a Warrant
Certificate, and payment of the Purchase Price, the Company shall issue and
cause to be registered, countersigned and delivered to or upon the written order
of the registered holder of such Warrant Certificate and in such name or names
as such registered holder may designate, a certificate for one (1) share of
Common Stock for each Warrant then being exercised. Such certificate shall be
deemed to have been issued and any person so designated to be named therein
shall be deemed to have become a holder of record of such share or shares of
Common Stock, as of the date of the surrender of such Warrant Certificates and
payment of the Purchase Price; provided, however, that if, at the date of
surrender of such Warrant Certificates and payment of such Purchase Price, the
transfer books for the Common Stock shall be closed, the certificate for such
share or shares of Common Stock shall be issuable as of the date on which such
books shall next be opened and until such date the Company shall be under no
duty to deliver any certificate for such share or shares; provided, further,
that such books, unless otherwise required by law, shall not be closed at any
one time for a period longer than 20 days. The Warrants evidenced by the Warrant
Certificates shall be exercisable immediately upon issuance, at the election of
the registered holders thereof, either as an entirety or from time to time for
only part of the number of Warrants evidenced by the Warrant Certificates. In
the event that less than all of the Warrants evidenced by a Warrant Certificate
surrendered upon the exercise of Warrants are exercised at any time prior to the
date of expiration of the Warrants, a new Warrant Certificate will be issued for
the remaining number of Warrants evidenced by the Warrant Certificate so
surrendered, and the Warrant Agent shall countersign and deliver the required
new Warrant Certificate pursuant to the provisions of this Section and of
Section 3 and the Company, whenever required by the Warrant Agent, will supply
the Warrant Agent with a Warrant Certificate duly executed on behalf of the
Company for such purpose.

         SECTION 6. CALL OF WARRANTS FOR REDEMPTION. The Company shall have the
right to call the Warrants for redemption, as a whole, or from time to time in
part substantially pro rata, at the price of one cent ($.01) per Warrant on
thirty (30) days' prior written notice if the Closing Price of the Common Stock
exceeds Fourteen Dollars ($14.00) over a period of 15 consecutive trading days
ending within 15 days of the notice of redemption. Should the Company call the
Warrants at a time when said Warrants are not exercisable, the Warrants shall
become immediately exercisable through the Redemption Date (as defined below).

         Notice of call shall be mailed by the Warrant Agent to the registered
holders of the Warrants by first-class mail, postage prepaid not less than
thirty (30) nor more than ninety (90) days prior to the date ("Redemption Date")
set by the Company's Board of Directors for redemption, to their last addresses
as they shall appear upon the Warrant register.

         The redemption price is subject to adjustment in the event of stock
splits on other similar events. All outstanding Warrants must be redeemed if any
are to be redeemed.

<PAGE>

         The redemption price payable after the call date upon surrender of the
Warrant Certificate evidencing the Warrants to the Company at the principal
office of the Warrant Agent in _______________, shall be paid in cash or by
certified check or bank draft. Warrant Certificates so called shall be delivered
by the Warrant Agent to the Company from time to time or otherwise disposed of
by the Warrant Agent in a manner satisfactory to the Company. Following the date
fixed for call and redemption, only those Warrants not so called shall be
exercisable.

         As used herein, the term "Closing Price" for each day shall be either
(i) the last reported sale price as officially reported on the principal
exchange on which the Common Stock is listed or the National Association of
Securities Dealers, Inc. Automated Quotation System ("NASDAQ") National Market
System, if so quoted, or (ii) if not so listed or quoted, the closing price as
reported on NASDAQ. Notice to the registered holders of the Warrant Certificates
hereunder, stating the time (which shall be 5:00 P.M. New York time) and the
Redemption Date by which such holders must submit their Warrant Certificates to
the Warrant Agent shall be given by the Company, or the Warrant Agent at the
Company's request, by first-class, postage prepaid mail to the registered
holders of outstanding Warrant Certificates.

         In case the Company shall exercise its right to redeem it shall give
notice to the registered holders of the outstanding Warrants by mailing to such
registered holders a notice of redemption, first class, postage prepaid, not
later than the thirtieth (30) day before the date fixed for redemption, at their
last address as shall appear on the records of the Warrant Agent. Any notice
mailed in the manner provided herein shall be conclusively presumed to have been
duly given whether or not the registered holder receives such notice.

         The notice of redemption shall specify the redemption price, the date
fixed for redemption, the place where the redeemed Warrant Certificates shall be
delivered, and that the right to exercise the Warrant shall terminate at 5:00
P.M. (New York time) on the business day immediately preceding the date fixed
for redemption.

         The date fixed for redemption of the Warrants shall be the Redemption
Date. No failure to mail such notice nor any defect therein or in the mailing
thereof shall affect the validity of the proceedings for such redemption except
as to a holder (a) to whom notice was not mailed or (b) whose name was
defective. An affidavit of the Warrant Agent or of the Secretary or an Assistant
Secretary of the Company that notice of redemption has been mailed shall, in the
absence of fraud, be prima facie evidence of the facts stated therein.

         Any right to exercise a Warrant shall terminate at 5:00 P.M. (New York
time) on the business day immediately preceding the Redemption Date. On and
after the Redemption Date, Holders of the Warrants shall have no further rights
except to receive, upon surrender of the Warrant, the Redemption Price.

         From and after the Redemption Date, the Company shall, at the place
specified in the notice of redemption, upon presentation and surrender to the
Company by or on behalf of the Registered Holder thereof of one or more Warrants
to be redeemed, deliver or cause to be delivered to or upon the written order of
such Holder a sum in cash equal to the redemption price of each such Warrant.
From and after the date fixed for redemption and upon the deposit or setting
aside by the Company of a sum sufficient to redeem all the Warrants called for
redemption, such Warrants shall expire and become void and all rights hereunder
and under the Warrant Certificates, except the right to receive payment of the
redemption price, shall cease.
<PAGE>

         SECTION 7. PAYMENT OF TAXES. The Company will pay all documentary stamp
taxes, if any, attributable to the initial issuance of shares of Common Stock
upon the exercise of Warrants; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue or delivery of any certificates for shares of Common Stock
in any name other than that of the registered holder of a Warrant Certificate
surrendered upon the exercise of a Warrant.

         SECTION 8. MUTILATED OR MISSING WARRANT CERTIFICATES. In case any of
the Warrant Certificates shall be mutilated, lost, stolen or destroyed, the
Company may in its discretion issue and the Warrant Agent may countersign and
deliver in exchange and substitution for and upon cancellation of the mutilated
Warrant Certificate, or in lieu of and substitution for the Warrant Certificate
mutilated, lost, stolen or destroyed, a new Warrant Certificate of like tenor
and evidencing the number of Warrants evidenced by the Warrant Certificate so
mutilated, lost, stolen or destroyed, but only upon receipt of evidence
satisfactory to the Company and the Warrant Agent of such loss, theft or
destruction of such Warrant Certificate and indemnity, if requested, also
satisfactory to them. Applicants for such substitute Warrant Certificate shall
also comply with such other reasonable regulations and pay such other reasonable
charges as the Company or the Warrant Agent may prescribe.

         SECTION 9. RESERVATION OF COMMON STOCK, ETC. There have been reserved,
and the Company shall at all times keep reserved, out of the authorized and
unissued shares of Common Stock, a number of shares sufficient to provide for
the exercise of the Warrants, and the Transfer Agent for the Common Stock is
hereby irrevocably authorized and directed at all times to reserve such number
of authorized and unissued shares as shall be requisite for such purpose. The
Company will keep a copy of this Agreement on file with such Transfer Agent. The
Warrant Agent is hereby irrevocably authorized to requisition from time to time
from such Transfer Agent stock certificates issuable upon exercise of
outstanding Warrants. The Company will supply such Transfer Agent with duly
executed stock certificates for such purpose. All Warrant Certificates
surrendered upon exercise of Warrants shall be cancelled by the Warrant Agent
and shall thereafter be delivered to the Company or otherwise disposed of in a
manner satisfactory to the Company. Unless all Warrants shall have been
exercised prior to the time of the expiration of the Warrants, the Warrant Agent
shall certify to the Company, as of the close of business on the date of such
expiration, the total aggregate amount of Warrants then outstanding, and
thereafter no shares of Common Stock shall be subject to reservation in respect
of such Warrants.

         SECTION 10. OBTAINING OF GOVERNMENTAL APPROVALS. The Company will from
time to time take all action which may be necessary to obtain and keep effective
any and all permits, consents and approvals of governmental agencies and
authorities which may be or become requisite in connection with the issuance,
sale, transfer and delivery of the Warrant Certificates to the initial Warrant
holders.

         SECTION 11. ADJUSTMENTS TO PURCHASE PRICE AND NUMBER OF WARRANTS. The
Purchase Price and the number of Warrants evidenced by any Warrant Certificate
shall be subject to adjustment from time to time as follows:
<PAGE>

                  (A) In case the shares of Common Stock at any time outstanding
shall be subdivided into a greater or combined into a lesser number of shares of
Common Stock or in case shares of Common Stock shall be issued as a stock
dividend, the Purchase Price shall be decreased or increased, as the case may
be, to an amount which shall bear the same relation to the Purchase Price in
effect immediately prior to such subdivision or combination or stock dividend as
the total number of shares of Common Stock outstanding immediately prior to such
subdivision or combination or stock dividend shall bear to the total number of
shares of Common Stock outstanding immediately after such subdivision or
combination or stock dividend.

                  (B) In case of any capital reorganization, or of any
reclassification of the Common Stock, of the Company or in case of the
consolidation of the Company with or the merger of the Company into any other
corporation (other than a consolidation or merger in which the Company is the
continuing corporation) or of the sale of the properties and assets of the
Company as, or substantially as, an entirety to any other corporation, each
Warrant shall after such capital reorganization, reclassification of Common
Stock, consolidation, merger or sale be exercisable, upon the terms and
conditions specified in this Agreement, for the number of shares of stock or
other securities or property of the Company, or of the corporation resulting
from such consolidation or surviving such merger or to which such sale shall be
made, as the case may be, to which the Common Stock issuable (at the time of
such capital reorganization, reclassification of Common Stock, consolidation,
merger or sale) upon exercise of such Warrant would have been entitled upon such
capital reorganization, reclassification of Common Stock, consolidation, merger
or sale if such exercise had taken place; and in any such case, if necessary,
the provisions set forth in this Section 11 with respect to the rights and
interests thereafter of the holders of the Warrants shall be appropriately
adjusted so as to be applicable, as nearly as may reasonably be, to any shares
of stock or other securities or property thereafter deliverable on the exercise
of the Warrants. The subdivision or combination of shares of Common Stock at any
time outstanding into a greater or lesser number of shares of Common Stock shall
not be deemed to be a reclassification of the Common Stock of the Company for
the purposes of this paragraph. The Company shall not effect any such
consolidation, merger or sale, unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger or the corporation purchasing such
assets shall assume by written instrument executed and delivered to the Warrant
Agent, the obligation to deliver to the holder of each Warrant such shares of
stock, securities or assets as, in accordance with the foregoing provisions,
such holders may be entitled to purchase and the other obligations under this
Agreement.

                  (C) In case after the date hereof, the Company shall declare a
dividend upon shares of Common Stock payable otherwise than out of retained
earnings or otherwise than in shares of Common Stock or in stock or obligations
directly or indirectly convertible into or exchangeable for Common Stock, the
holder of each Warrant shall, upon exercise of such Warrant in whole or in part,
be entitled to purchase, in addition to the number of shares of Common Stock
deliverable upon such exercise against payment of the Purchase Price therefor,
but without further consideration, the cash, stock or other securities or
property which the holder of such Warrant would have received as dividends
(otherwise than out of such retained earnings and otherwise than in shares of
Common Stock or in such convertible or exchangeable stock or obligations), if
continuously since the date of the Warrant Certificate evidencing such Warrant
such holder (i) had been the holder of record of the number of shares of Common
Stock deliverable upon such exercise and (ii) had retained all dividends in
stock or other securities (other than shares of Common Stock or such convertible
or exchangeable stock or obligations) paid or payable in respect of said number
of shares of Common Stock or in respect of any such stock or other securities so
paid or payable as such dividends. For purposes of this subparagraph (C), a
dividend payable otherwise than in cash shall be considered to be payable out of
retained earnings only to the extent that such retained earnings shall be
charged in an amount equal to the fair value of such dividend as determined by
the Board of Directors.
<PAGE>

                  (D) Anything in this Section 11 to the contrary
notwithstanding, the Company shall not be required, except as hereinafter in
this subparagraph (D) provided, to make any adjustment of the Purchase Price in
any case in which the amount by which such Purchase Price would be reduced in
accordance with the foregoing provisions of Section 11 would be less than one
cent ($.01) per share of Common Stock, but in such case any adjustment that
would otherwise be required then to be made will be carried forward and made at
the time of and together with the next subsequent adjustment which, together
with any and all such adjustments so carried forward, shall amount to one cent
($.01) or more per share of Common Stock. In the event of any subdivision or
combination of shares of Common Stock said amount of one cent ($.01) (as
theretofore decreased or increased by any previous subdivision or combination)
shall be proportionately decreased or increased.

                  (I) Upon each adjustment of the Purchase Price each Warrant
Certificate shall thereafter (until another such adjustment) evidence that
number of Warrants (calculated to the nearest hundredth) obtained by multiplying
the number of Warrants evidenced by such Warrant Certificate immediately prior
to such adjustment by the Purchase Price in effect immediately prior to such
adjustment and dividing the product so obtained by the Purchase Price in effect
after such adjustment.

                  (J) Whenever there is an adjustment in the Purchase Price as
provided herein, the Company shall promptly (1) file with the Warrant Agent a
certificate signed by the Chairman of the Board, President or a Vice President
of the Company and by the Treasurer or an Assistant Treasurer or the Secretary
or an Assistant Secretary of the Company, stating the Purchase Price as so
adjusted and showing in detail the facts requiring such adjustment and the
number of Warrants to be evidenced by outstanding Warrant Certificates as a
result of such adjustment and (2) cause a notice stating that such adjustment
has been effected and stating the Purchase Price then in effect and the number
of Warrants to be evidenced by outstanding Warrant Certificates as a result of
such adjustment to be sent by first-class mail, postage prepaid, to each
registered holder of a Warrant Certificate as a result of such adjustment to be
sent by first-class mail, postage prepaid, to each registered holder of a
Warrant Certificate at his address appearing on the Warrant register. The
Warrant Agent shall have no duty with respect to any such certificate (or its
contents) filed with it except to keep the same on file and available for
inspection by holders of Warrant Certificates during reasonable business hours.
The Warrant Agent shall not at any time be under any duty or responsibility to
any holder of a Warrant Certificate to determine whether any facts exist which
may require any adjustment of the Purchase Price or with respect to the nature
or extent of any such adjustment when made, or with respect to the method
employed in making any such adjustment.

                  (K) Each Warrant Certificate shall state the Purchase Price in
effect on the date of countersignature thereof by the Warrant Agent and shall
specify the number of Warrants evidenced by such Warrant Certificate as of such
date, in each case after giving effect to all adjustments, if any, theretofore
required to have been made pursuant to Section 11.

                  (L) The Company may retain M.R. Weiser & Co. LLP, or such
other firm of independent public accountants of recognized standing, which may
be the firm regularly retained by the Company, selected by the Board of
Directors to make any computation required under this Section, and a certificate
signed by such firm shall be conclusive evidence of the correctness of any
computation made under this Section.
<PAGE>

         SECTION 12. FRACTIONAL WARRANTS. As provided in Section 2, each Warrant
upon initial issuance shall entitle the holder thereof to purchase no less than
one (1) share of Common Stock upon the exercise thereof, but the number of
Warrants evidenced by any Warrant Certificate shall be subject to adjustment,
pursuant to Section 11, upon the occurrence of certain events. In the event of
adjustment of the number of shares of Common Stock and the Purchase Price
pursuant to the provisions of Section 11, the Company shall not be required to
issue fractions of shares upon the exercise of any Warrant. In such an event,
the holder of a Warrant shall have the right to purchase a whole share of Common
Stock at the Purchase Price.

         SECTION 13. NOTICES TO WARRANT HOLDERS. Nothing contained in this
Agreement or in any of the Warrant Certificates shall be construed as conferring
upon the holders thereof the right to vote or to consent or to receive notice as
stockholders in respect of the meetings of stockholders or the election of
Directors of the Company or any other matter, or any rights whatsoever as
stockholders of the Company; provided, however, that in the event that:

                  (1) the Company shall take action to make any distribution
(other than cash dividends payable out of retained earnings) to the holders of
Common Stock;

                  (2) the Company shall take action to offer for subscription
pro rata to the holders of Common Stock any additional shares of stock of any
class or other rights or securities convertible into Common Stock;

                  (3) the Company shall take action to accomplish any capital
reorganization, or reclassification of the capital stock of the Company (other
than a change in par value, or a change from par value to no par value, or a
change from no par value to par value, or a subdivision or merger of the Company
into, or sale of all or substantially all of its assets to, another corporation;
or

                  (4) the Company shall take action looking to a voluntary or
involuntary dissolution, liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall (a) at least 10 days
prior to the date on which the books of the Company shall close or a record
shall be taken for such distribution or subscription rights or for determining
rights to vote in respect of any such reorganization, reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up, cause
written notice thereof to be sent by first-class mail, postage prepaid, to each
registered holder of a Warrant Certificate at his address appearing on the
Warrant register, and (b) in the case of any such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, cause at least 20 days' prior written notice of the date when the
same shall take place to be given to each registered holder of a Warrant
Certificate in the same manner. Such notice in accordance with the foregoing
clause (a) shall also specify, in the case of any such distribution or
subscription rights, the date on which the holders of Common Stock shall be
entitled thereto, and such notice in accordance with the foregoing clause (b)
shall also specify the date on which the holders of Common Stock shall be
entitled to exchange their 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.
<PAGE>

         SECTION 14. DISPOSITION OF PROCEEDS ON EXERCISE OF WARRANTS, ETC.

                  A. Upon the exercise of each Warrant as provided in Section 5,
the Warrant Agent shall promptly deposit the Purchase Price payment in an escrow
account ("Escrow Account") to be established by the mutual agreement of the
Company and the Warrant Agent at a federally insured commercial bank. On a
weekly basis, there shall be remitted to the Company the amount of collected
funds on deposit in the Escrow Account, as determined by the Warrant Agent, net
of an amount equal to the Warrant Agent's reimbursable expenses. Upon
disbursement of the collected funds to the Company, the Warrant Agent shall
cause to be issued and delivered the share certificate(s) representing the
shares issuable with respect to such collected funds.

         Expenses incurred by the Warrant Agent for acting as warrant agent in
connection with each Warrant exercised, including those associated with the
issuance and delivery of share certificates, shall be paid by the Company and
shall be payable by disbursement from the Escrow Account prior to disbursement
to the Company of its portion of the collected funds relating to such exercised
Warrants.

         The Warrant Agent shall prepare and deliver to the Company on a weekly
basis at the time each disbursement is made from the Escrow Account a detailed
written accounting relating to the Warrants exercised, Warrant Agent expenses
reimbursed and the collected funds remitted to the Company from the Escrow
Account, which shall serve as an interim accounting. A final accounting will be
prepared and delivered to the Company by the Warrant Agent promptly following
expiration of the exercise period for the Warrants.

                  B. The Warrant Agent shall keep copies of this Agreement
available for inspection by holders of Warrants during normal business hours at
its principal office in _______________________.

         SECTION 15. MERGER OR CONSOLIDATION OR CHANGE OF NAME OF WARRANT AGENT.
Any corporation into which the Warrant Agent may be merged or with which it may
be consolidated, or any corporation resulting from any merger or consolidation
to which the Warrant Agent shall be a party, or any corporation succeeding to
the corporate trust business of the Warrant Agent, shall be the successor to the
Warrant Agent hereunder without the execution or filing of any paper or any
further act on the part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor Warrant Agent under
the provisions of Section 17 of this Agreement. In case at the time such
successor to the Warrant Agent shall succeed to the agency created by this
Agreement, and in case at that time any of the Warrant Certificates shall have
been countersigned but not delivered, any such successor to the Warrant Agent
may adopt the countersignature of the predecessor Warrant Agent and deliver such
Warrant Certificates so countersigned; and in case at that time any of the
Warrant Certificates shall not have been countersigned, any successor to the
Warrant Agent may countersign such Warrant Certificates either in the name of
the predecessor Warrant Agent or in the name of the successor Warrant Agent; and
in all such cases such Warrant Certificates shall have the full force provided
in the Warrant Certificates and in this Agreement.
<PAGE>

         In case at any time the name of the Warrant Agent shall be changed and
at such time any of the Warrant Certificates shall have been countersigned but
not delivered, the Warrant Agent may adopt the countersignature under its prior
name and deliver Warrant Certificates so countersigned; and in case at that time
any of the Warrant Certificates shall not have been countersigned, the Warrant
Agent may countersign such Warrant Certificates either in its prior name or in
its changed name; and in all such cases such Warrant Certificates shall have the
full force provided in the Warrant Certificates and in this Agreement.

         SECTION 16. DUTIES OF WARRANT AGENT. The Warrant Agent undertakes the
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Warrants, by their
acceptance thereof, shall be bound:

                  A. The statements contained herein and in the Warrant
Certificates shall be taken as statements of the Company and the Warrant Agent
assumes no responsibility for the correctness of any of the same except such as
describe the Warrant Agent or action taken or to be taken by it. The Warrant
Agent assumes no responsibility with respect to the delivery of Warrant
Certificates except as herein otherwise provided.

                  B. The Warrant Agent shall not be responsible for any failure
of the Company to comply with any of the covenants contained in this Agreement
or in the Warrant Certificates to be complied with by the Company.

                  C. The Warrant Agent may execute and exercise any of the
rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys, agents or employees and the Warrant Agent shall
not be answerable or accountable for any act, default, neglect or misconduct of
any such attorneys, agents or employees or for any loss to the Company resulting
from such neglect or misconduct, provided reasonable care shall have been
exercised in the selection and continued employment thereof.

                  D. The Warrant Agent may consult at any time with counsel
satisfactory to it (who may be counsel for the Company) and the Warrant Agent
shall incur no liability or responsibility to the Company or to any holder of
any Warrant Certificate in respect of any action taken, suffered or omitted by
it hereunder in good faith and in accordance with the opinion or the advice of
such counsel, provided the Warrant Agent shall have exercised reasonable care in
the selection and continued employment of such counsel.

                  E. The Warrant Agent shall incur no liability or
responsibility to the Company or to any holder of any Warrant Certificate for
any action taken in reliance on any notice, resolution, waiver, consent, order,
certificate, or other paper, document or instrument believed by it to be genuine
and to have been signed, sent or presented by the proper party or parties.

                  F. The Company agrees to pay to the Warrant Agent reasonable
compensation for all services rendered by the Warrant Agent in the execution of
this Agreement, to reimburse the Warrant Agent for all expenses, taxes and
governmental charges and other charges of any kind and nature incurred by the
Warrant Agent in the execution of this Agreement and to indemnify the Warrant
Agent and save it harmless against any and all liabilities, including judgments,
costs and counsel fees, for anything done or omitted by the Warrant Agent in the
execution of this Agreement except as a result of the Warrant Agent's negligence
or bad faith.
<PAGE>

                  G. The Warrant Agent shall be under no obligation to institute
any action, suit or legal proceeding or to take any other action likely to
involve expense unless the Company or one or more registered holders of Warrant
Certificates shall furnish the Warrant Agent with reasonable security and
indemnity for any costs and expenses which may be incurred. All rights of action
under this Agreement or under any of the Warrants may be enforced by the Warrant
Agent without the possession of any of the Warrant Certificates or the
production thereof at any trial or other proceeding relative thereto, and any
such action, suit or proceeding instituted by the Warrant Agent shall be brought
in its name as Warrant Agent, and any recovery of judgment shall be for the
ratable benefit of the registered holders of the Warrants, as their respective
rights or interest may appear.

                  H. The Warrant Agent and any stockholder, director, officer or
employee of the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to or otherwise act as fully and freely as though it were not Warrant
Agent under this Agreement. Nothing herein shall preclude the Warrant Agent from
acting in any other capacity for the Company or for any other legal entity.

                  I. The Warrant Agent shall act hereunder solely as agent, and
its duties shall be determined solely by the provisions hereof. The Warrant
Agent shall not be liable for anything which it may do or refrain from doing in
connection with this Agreement except for its own negligence or bad faith.

         SECTION 17. CHANGE OF WARRANT AGENT. The Warrant Agent may resign and
be discharged from its duties under this Agreement by giving to the Company
notice in writing, and to the holders of the Warrant Certificates notice in
writing and sent by first class mail, postage prepaid, to each registered holder
of a Warrant Certificate at his address appearing in the Warrant register,
specifying a date when such resignation shall take effect. If the Warrant Agent
shall resign or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Warrant Agent. If the Company shall fail to make such
appointment within a period of 30 days after it has been notified in writing of
such resignation or incapacity by the resigning or incapacitated Warrant Agent
or by the registered holder of a Warrant Certificate (who shall, with such
notice, submit his Warrant Certificate for inspection by the Company, then the
registered holder of any Warrant may apply to any court of competent
jurisdiction for the appointment of a successor to the Warrant Agent. Any
successor warrant agent, whether appointed by the Company or by such a court,
shall be a bank or trust company, in good standing, incorporated under the laws
of the United States of America or of any State or Territory or of the District
of Columbia and having at the time of its appointment as warrant agent a
combined capital and surplus of at least One Million Dollars ($1,000,000). After
appointment the successor warrant agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as
Warrant Agent without further act or deed; but the former Warrant Agent shall
deliver and transfer to the successor warrant agent any property at the time
held by it hereunder, and execute and deliver any further assurance, conveyance,
act or deed necessary for the purpose. Failure to give any notice provided for
in this Section, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Warrant Agent or the
appointment of the successor warrant agent, as the case may be.
<PAGE>

         SECTION 18. IDENTITY OF TRANSFER AGENT. Forthwith upon the appointment
after the date hereof of any Transfer Agent for the Common Stock or of any
subsequent Transfer Agent for shares of the Common Stock, the Company will file
with the Warrant Agent a statement setting forth the name and address of such
Transfer Agent.

         SECTION 19. NOTICES. Any notice pursuant to this Agreement to be given
by the Warrant Agent or by the registered holder of any Warrant Certificate to
the Company shall be sufficiently given if sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing by the Company
with the Warrant Agent) as follows:

                           RETRAC MEDICAL, INC.
                           22 South Main Street
                           New City, New York  10956
                           Attention:  Thomas Sassone, CEO

                           with a copy to:
                           --------------

                           Oppenheimer Wolff & Donnelly LLP
                           840 Newport Center Drive, Suite 700
                           Newport Beach, California 92660
                           Attention:  Daniel K. Donahue, Esq.

Any notice pursuant to this Agreement to be given by the Company or by the
registered holder of any Warrant Certificate to the Warrant Agent shall be
sufficiently given if sent by first-class mail, postage prepaid, addressed
(until another address is filed in writing by the Warrant Agent with the
Company) as follows:

                           COMPUTERSHARE TRUST COMPANY
                           12039 W. Alameda Parkway, Suite Z-2
                           Lakewood, Colorado  80228

         SECTION 20. SUPPLEMENTS AND AMENDMENTS. The Company and the Warrant
Agent may from time to time supplement or amend this Agreement without the
approval of any holders of Warrant Certificates in order to cure any ambiguity
or to correct or supplement any provision contained herein which may be
defective or inconsistent with any other provision herein, or to make any other
provisions in regard to matters or questions arising hereunder which the Company
and the Warrant Agent may deem necessary or desirable and which shall not
adversely affect the interests of the holders of Warrant Certificates.

         SECTION 21. SUCCESSORS. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.
<PAGE>

         SECTION 22. REGISTRATION OF SHARES OF COMMON STOCK. The Company will
furnish to the Warrant Agent, upon request, an opinion of counsel to the effect
that (i) a Registration Statement under the Securities Act of 1933, as amended,
is then in effect with respect to shares of Common Stock issuable upon exercise
of the Warrants and that the Prospectuses hereinafter referred to comply as to
form in all material respects with the requirements of said Act and the rules
and regulations of the Securities and Exchange Commission thereunder; or (ii) a
Registration Statement under said Act with respect to said shares is not
required. In the event that said opinion states that such a Registration
Statement is in effect the Company will, from time to time, furnish the Warrant
Agent with current Prospectuses meeting the requirements of said Act and all
rules and regulations thereunder in sufficient quantity to permit the Warrant
Agent to deliver a Prospectus to each holder of a Warrant upon exercise thereof.
The Company further agrees to pay all fees, costs and expenses in connection
with the preparation and delivery to the Warrant Agent of the foregoing opinions
and Prospectuses.

         SECTION 23. TERMINATION. This Agreement shall terminate at the close of
business on _____, 2006, unless the Warrants shall be extended by the Company,
in which event this Agreement shall terminate at the close of business on the
day such period expires, or such earlier date upon which all Warrants have been
exercised, except that the Warrant Agent shall account to the Company pursuant
to Section 14 for all cash held by it at the close of business on such date of
termination. The provisions of Section 16 shall survive such termination.

         SECTION 24. GOVERNING LAW. This Agreement and each Warrant Certificate
issued hereunder shall be deemed to be a contract made under the laws of the
State of New York and for all purposes shall be construed in accordance with the
laws of said State.

         SECTION 25. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall
be construed to give to any person or corporation other than the Company, the
Warrant Agent and the registered holders of the Warrant Certificates any legal
or equitable right, remedy or claim under this Agreement; but this Agreement
shall be for the sole and exclusive benefit of the Company, the Warrant Agent
and the registered holders of the Warrant Certificates.

<PAGE>

         SECTION 26. COUNTERPARTS. This Agreement may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

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

                                            RETRAC MEDICAL, INC.

                                            By:
                                                --------------------------------
                                                Thomas Sassone

                                            COMPUTERSHARE TRUST COMPANY

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

<PAGE>

STATE OF                            )
                                    ) ss.
COUNTY OF                           )

                  On the day of , 2001, before me, the undersigned, a Notary
Public in and for said State, personally appeared THOMAS SASSONE, personally
known to me (or proved to me on the basis of satisfactory evidence), to be the
person who executed the within instrument as CEO of RETRAC MEDICAL, INC., the
corporation described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by order of the Board of Directors
of said corporation; and that he signed his name thereto by like order.

                                           Notary Public

STATE OF                   )
                           ) ss.
COUNTY OF                  )

                  BE IT REMEMBERED, that on this day of , 2001, before me, the
undersigned, a Notary Public in and for said State, personally appeared ,
personally known to me (or proved to me on the basis of satisfactory evidence),
to be the person who executed the within instrument as of COMPUTERSHARE TRUST
COMPANY, the corporation described in and which executed the within instrument;
that he signed, sealed with the seal of said corporation and delivered the same
as such officer aforesaid; that the within instrument is the voluntary act and
deed of said corporation made by virtue of authority from its Board of
Directors.

                                           Notary Public

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