Document:

Warrant Agreement

Aarica

                                WARRANT AGREEMENT

                                     Between

                              AARICA HOLDINGS, INC.

                                       And

                       AMERICAN STOCK TRANSFER & TRUST CO.

                                As Warrant Agent

     for Public  Offering of 1,000,000  Units,  Each  Consisting of One Share of
Common Stock and One Redeemable Common Stock Purchase Warrant

                        Dated as of September _____, 2000

THIS  WARRANT  AGREEMENT,  dated as of September  _____,  2000,  between  Aarica
Holdings, Inc., a Texas corporation (the "Company"), and American Stock Transfer
& Trust Co., New York, New York, as warrant agent (the "Warrant Agent");

         WHEREAS,  the Company  proposes to issue  1,000,000  Redeemable  Common
Stock  Purchase  Warrants (the  "Warrants"),  entitling  the holders  thereof to
purchase one share of Common Stock,  at $.01 par value (the "Common  Stock") for
each  Warrant,  in  connection  with the  proposed  issuance  by the  Company of
1,000,000  Units,  each Unit  consisting  of one  share of Common  Stock and one
Warrant,  and  the  Company  also  proposes  to  issue  up to  150,000  Warrants
underlying,  in part, the Underwriters'  over-allotment option and up to 100,000
Warrants  underlying,  in part, a warrant to purchase Units to be granted to the
Representative of the Underwriters; and

         WHEREAS,  the Company desires the Warrant Agent to act on behalf of the
Company,  and the  Warrant  Agent  is  willing  to act in  connection  with  the
registration, transfer, exchange and exercise of Warrants;

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

     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.

         2. Form of Warrant. The text of the Warrant and of the form of election
to purchase shares to be printed on the reverse  thereof shall be  substantially
as set forth in Exhibit A attached  hereto.  The Warrant  Price to purchase  one
share of Common  Stock  shall be as  provided  and  defined  in  Section  8. The
Warrants  shall be executed on behalf of the Company by the manual or  facsimile
signature  of the present or any future  Chairman of the Board or  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.  Warrants shall be dated
as of the date of issuance  thereof by the  Warrant  Agent  either upon  initial
issuance or upon transfer or exchange.

<PAGE>

Warrant Agreement

Aarica

         3. Countersignature and Registration.  The Warrant Agent shall maintain
books for the transfer and  registration of the Warrants.  The Warrants shall be
countersigned  by the Warrant  Agent (or by any  successor to the Warrant  Agent
then acting as warrant  agent under this  Agreement)  and shall not be valid for
any purpose unless so countersigned.  Warrants may be so countersigned, however,
by the Warrant Agent (or by its successor as 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.

         4. Transfers and Exchanges. The Warrant Agent shall transfer, from time
to time after the sale of the Units, any outstanding  Warrants upon the books to
be maintained by the Warrant Agent for that purpose,  upon surrender thereof for
transfer  properly  endorsed or  accompanied  by  appropriate  instructions  for
transfer.  Upon  any  such  transfer,  a new  Warrant  shall  be  issued  to the
transferee, and the surrendered Warrant shall be cancelled by the Warrant Agent.
Warrants so cancelled  shall be  delivered  by the Warrant  Agent to the Company
from time to time.  The  Warrants  may be  exchanged at the option of the holder
thereof,  when  surrendered  at the office of the  Warrant  Agent,  for  another
Warrant,  or other  Warrants  of  different  denominations,  of like  tenor  and
representing  in the  aggregate the right to purchase a like number of shares of
Common Stock. The Warrant Agent is hereby irrevocably  authorized to countersign
in  accordance  with  Section  3 of this  Agreement  the new  Warrants  required
pursuant to the provisions of this section,  and the Company,  whenever required
by the Warrant Agent,  will supply the Warrant Agent with Warrants duly executed
on behalf of the Company for such purpose.

         5. Exercise of Warrants.  Subject to the provisions of this  Agreement,
each registered holder of Warrants shall have the right,  which may be exercised
as expressed  in such  Warrants,  to purchase  from the Company (and the Company
shall issue and sell to such registered  holder of warrants) the number of fully
paid and nonassessable  shares of Common Stock specified in such Warrants,  upon
surrender  of such  Warrants to the Company at the office of the Warrant  Agent,
with the form of election to purchase on the reverse  thereof duly filled in and
signed,  and upon payment to the Warrant Agent for the account of the Company of
the Warrant  Price for the number of shares of common  stock in respect of which
such Warrants are then  exercised.  Payment of such Warrant Price may be made in
cash, or by certified or official bank check,  payable in United States dollars,
to the order of the Warrant Agent. No adjustment shall be made for any dividends
on any shares of Common Stock  issuable  upon  exercise of a Warrant.  Upon such
surrender  of  Warrants,  and payment of the  Warrant  Price as  aforesaid,  the
Company shall issue and cause to be delivered with all reasonable dispatch to or
upon the written  order of the  registered  holder of such  Warrants and in such
name or  names  as such  registered  holder  may  designate,  a  certificate  or
certificates for the number of full shares of Common Stock so purchased upon the
exercise of such Warrants.  Such certificate or certificates  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  shares as of the date of the
surrender  of such  Warrants  and  payment of the  Warrant  Price as  aforesaid;
provided,  however,  that if,  at the date of  surrender  of such  Warrants  and
payment of the Warrant  Price,  the transfer books for the Common Stock or other
class of stock  purchasable  upon the exercise of such Warrants shall be closed,
the  certificates  for the shares in respect  of which  such  Warrants  are then
exercised  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 shares; provided further,  however, that the transfer books
aforesaid, unless otherwise required by law, shall not be closed at any one time
for a period  longer  than 20 days.  The rights of purchase  represented  by the
Warrants  shall  be  exercisable,  at the  election  of the  registered  holders
thereof,  either as an entirety or from time to time for part only of the shares
specified therein,  and in the event that any Warrant is exercised in respect of
less than all of the shares specified therein, a new Warrant or Warrants will be
issued  for  the  remaining  number  of  shares  specified  in  the  Warrant  so
surrendered,   and  the  Warrant  Agent  is  hereby  irrevocably  authorized  to
countersign and to deliver the required new Warrants  pursuant to the provisions
of this Section and of Section 3 of this  Agreement  and the  Company,  whenever
required by the Warrant Agent,  will supply the Warrant Agent with Warrants duly
executed on behalf of the Company for such purpose.

         6. Mutilated or Missing Warrants.  In case any of the Warrants shall be
mutilated,  lost,  stolen or  destroyed,  the Company will issue and the Warrant
Agent will  countersign  and deliver in exchange and  substitution  for and upon
cancellation of the mutilated  warrant,  or in lieu of and  substitution for the
Warrant lost, stolen or destroyed,  a new Warrant of like tenor and representing
an equivalent right or interest;  but only upon receipt of evidence satisfactory
to the Company and the Warrant Agent of such loss,  theft or destruction of such
Warrant and indemnity,  if requested,  also satisfactory to them. Applicants for
such  substitute   Warrants  shall  also  comply  with  such  other   reasonable
regulations and pay such other reasonable  charges as the Company or the Warrant
Agent may prescribe.

<PAGE>

         7.       Reservation and Registration of Common Stock.

         A. 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  rights  of  purchase
represented  by the  Warrants,  and the Transfer  Agent for the Common Stock and
every  subsequent  Transfer Agent for any shares of the Company's  capital stock
issuable upon the exercise of any of the rights of purchase aforesaid are 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 the Transfer  Agent for
the Common Stock and with every subsequent  Transfer Agent for any shares of the
Company's  capital  stock  issuable  upon the exercise of the rights of purchase
represented by the Warrants.  The Warrant Agent is hereby irrevocably authorized
to  requisition  from time to time such  Transfer  Agent for stock  certificates
required to honor  outstanding  Warrants.  The Company will supply such Transfer
Agents with duly executed  stock  certificates  for such purpose and will itself
provide or otherwise  make  available any cash which may be issuable as provided
in Section 9 of this Agreement.  All Warrants surrendered in the exercise of the
rights  thereby  evidenced  shall be  cancelled  by the Warrant  Agent and shall
thereafter  be delivered  to the  Company,  and such  cancelled  Warrants  shall
constitute  sufficient evidence of the number of shares of stock which have been
issued upon the exercise of such Warrants.

         B. The Company  represents that it has registered  under the Securities
Act of 1933,  as amended,  the shares of Common Stock  issuable upon exercise of
the Warrants and will use its best efforts to maintain the effectiveness of such
registration by  post-effective  amendment during the entire period in which the
Warrants are exercisable,  and that it will use its best efforts to qualify such
Common  Stock for sale under the  securities  laws of such  states of the United
States as may be  necessary to permit the exercise of the Warrants in the states
in which the Units are initially  qualified and to maintain such  qualifications
during the entire period in which the Warrants are exercisable.

         8.       Warrant Price; Adjustments.

         A. The  exercise  price (the  "Exercise  Price") at which  Common Stock
shall be purchasable  upon exercise of the Warrants at any time after the Common
Stock and Warrants become separately tradable and until 5:00 p.m., New York, New
York time, on  ____________,  2005,  shall be $_______ per share of Common Stock
or, if adjusted as provided in this Section, shall be such price as so adjusted.

     B. The Warrant  Price shall be subject to  adjustment  from time to time as
follows:

                           (1)  Except  as  hereinafter  provided,  in case  the
                  Company  shall at any time or from time to time after the date
                  hereof  issue any  additional  shares  of  Common  Stock for a
                  consideration  per share less than the Warrant Price in effect
                  immediately  prior to the issuance of such additional  shares,
                  or without  consideration,  then, upon each such issuance, the
                  Warrant Price in effect  immediately  prior to the issuance of
                  such  additional  shares shall forthwith be reduced to a price
                  (calculated to the nearest full cent) determined by dividing:

                                    (a) An amount  equal to (i) the total number
                           of  shares of Common  Stock  outstanding  immediately
                           prior  to such  issuance  multiplied  by the  Warrant
                           Price in effect  immediately  prior to such issuance,
                           plus (ii) the consideration,  if any, received by the
                           Company upon such issuance, by

                                    (b) The  total  number  of  shares of Common
                           Stock  outstanding  immediately after the issuance of
                           such additional shares.

<PAGE>

                           (2) The  Company  shall not be  required  to make any
                  such  adjustment of the Warrant  Price in accordance  with the
                  foregoing if the amount of such adjustment  shall be less than
                  $0.05  (adjustment  will be made  when  cumulative  adjustment
                  equals or exceeds  $0.05) but in such case the  Company  shall
                  maintain a cumulative  record of the Warrant Price as it would
                  have been in the absence of this provision (the  "Constructive
                  Warrant  Price"),  and  for the  purpose  of  computing  a new
                  Warrant Price after the next subsequent issuance of additional
                  shares  (but not for the  purpose  of  determining  whether an
                  adjustment  thereof  is  required  under  the  terms  of  this
                  paragraph) the  constructive  Warrant Price shall be deemed to
                  be the  Warrant  Price  in  effect  immediately  prior to such
                  issuance.

     (3) For the purpose of this Section 8 the following  provisions  shall also
be applicable:

                                    (a)  In  the   case  of  the   issuance   of
                           additional  shares  of Common  Stock  for  cash,  the
                           consideration  received by the Company therefor shall
                           be deemed to be the net cash proceeds received by the
                           Company  for  such  shares   before   deducting   any
                           commissions or other expenses paid or incurred by the
                           Company  for any  underwriting  of, or  otherwise  in
                           connection with, the issuance of such shares.

                                    (b) In case of the issuance  (otherwise than
                           upon  conversion  or  exchange  of  shares  of Common
                           stock) of  additional  shares  of Common  Stock for a
                           consideration  other than cash or a  consideration  a
                           part of which shall be other than cash, the amount of
                           the  consideration  other than cash  received  by the
                           Company  for such  shares  shall be  deemed to be the
                           value of such  consideration  as  determined  in good
                           faith by the Board of Directors of the Company, as of
                           the date of the  adoption of the  resolution  of said
                           Board,  providing for the issuance of such shares for
                           consideration  other than cash or for consideration a
                           part of which  shall be other  than  cash,  such fair
                           value to include  goodwill and other  intangibles  to
                           the extent determined in good faith by the Board.

                                    (c) In case of the  issuance  by the Company
                           after the date hereof of any security (other than the
                           Warrants) that is  convertible  into shares of Common
                           Stock  or of  any  warrants,  rights  or  options  to
                           purchase  shares of Common stock  (except the options
                           and  warrants  referred  to in  subsection  H of this
                           Section  8),  (i) the  Company  shall be  deemed  (as
                           provided  in  subparagraph  (e) below) to have issued
                           the  maximum   number  of  shares  of  Common   Stock
                           deliverable  upon  the  exercise  of such  conversion
                           privileges or warrants,  rights or options,  and (ii)
                           the consideration  therefor shall be deemed to be the
                           consideration   received  by  the  Company  for  such
                           convertible  securities or for such warrants,  rights
                           or  options,  as the  case may be,  before  deducting
                           therefrom  any  expenses or  commissions  incurred or
                           paid by the  Company  for  any  underwriting  of,  or
                           otherwise in  connection  with,  the issuance of such
                           convertible security or warrants,  rights or options,
                           plus  (A) the  minimum  consideration  or  adjustment
                           payment to be received  by the Company in  connection
                           with such  conversion,  or (B) the  minimum  price at
                           which shares of Common Stock are to be delivered upon
                           exercise of such  warrants,  rights or options or, if
                           no minimum  price is specified and such shares are to
                           be delivered at an option price related to the market
                           value of the subject shares,  an option price bearing
                           the same  relation to the market value of the subject
                           shares at the time such  warrants,  rights or options
                           were  granted;  provided that as to such options such
                           further adjustment as shall be necessary on the basis
                           of the actual  option  price at the time of  exercise
                           shall be made at such time if the actual option price
                           is less than the aforesaid  assumed option price.  No
                           further adjustment of the Warrant Price shall be made
                           as a result of the actual  issuance  of the shares of
                           Common Stock referred to in this subparagraph (c). on
                           the expiration of such  warrants,  rights or options,
                           or the  termination  of such  right to  convert,  the
                           Warrant  Price shall be  readjusted  to such  Warrant
                           Price as would  have  pertained  had the  adjustments
                           made  upon the  issuance  of such  warrants,  rights,
                           options or convertible  securities been made upon the
                           basis of the delivery of only the number of shares of
                           Common Stock actually  delivered upon the exercise of
                           such   warrants,   rights  or  options  or  upon  the
                           conversion of such securities.

                                    (d) For the purposes hereof,  any additional
                           shares of  Common  Stock  issued as a stock  dividend
                           shall  be  deemed  to  have   been   issued   for  no
                           consideration.

<PAGE>

                                    (e) The number of shares of Common  Stock at
                           any time  outstanding  shall  include  the  aggregate
                           number  of  shares  deliverable  in  respect  of  the
                           convertible  securities,  rights and options referred
                           to in subparagraph  (c) of this  paragraph;  provided
                           that with respect to shares referred to in clause (i)
                           of   subparagraph   (c),  to  the  extent  that  such
                           warrants,  options,  rights or conversion  privileges
                           are not exercised,  such shares shall be deemed to be
                           outstanding  only until the  expiration  dates of the
                           warrants, rights, options or conversion privileges or
                           the prior cancellation thereof.

         C. In case the  Company  shall at any time  subdivide  its  outstanding
shares of Common  stock into a greater  number of shares,  the Warrant  Price in
effect  immediately prior to such subdivision shall be  proportionately  reduced
and, in case the outstanding  shares of the Common Stock of the Company shall be
combined  into  a  smaller  number  of  shares,  the  Warrant  Price  in  effect
immediately prior to such combination shall be proportionately increased.

         D. Upon each adjustment of the Warrant Price pursuant to the provisions
of this  Section  8, the number of shares  issuable  upon the  exercise  of each
Warrant  shall be adjusted by  multiplying  the Warrant Price in effect prior to
the  adjustment  by the number of shares of Common Stock  covered by the warrant
and dividing the product so obtained by the adjusted Warrant Price.

         E.  Except  upon  consolidation  or  reclassification  of the shares of
Common  Stock of the Company as provided  for in  subsection C hereof and except
for  readjustment  of the Warrant Price upon  expiration of warrants,  rights or
options as provided  for in  subparagraph  (c) of  paragraph 3 of  subsection  B
hereof,  the Warrant  Price in effect at any time may not be adjusted  upward or
increased in any manner whatsoever.

         F. Irrespective of any adjustment or change in the Warrant Price or the
number of  shares  of  Common  Stock  actually  purchasable  under  the  several
Warrants, the Warrants theretofore and thereafter issued may continue to express
the Warrant Price per share and the number of shares  purchasable  thereunder as
the Warrant Price per share and the number of shares  purchasable were expressed
in the Warrants when initially issued.

         G. If any capital  reorganization  or  reclassification  of the capital
stock of the Company  (other than a  distribution  of stock in  accordance  with
Section 10.B) or consolidation or merger of the Company with another corporation
or the sale of all or  substantially  all of its assets to  another  corporation
shall   be   effected,   then,   as  a   condition   of   such   reorganization,
reclassification,   consolidation,  or  merger  or  sale,  lawful  and  adequate
provision  shall be made  whereby the holder of each  Warrant  then  outstanding
shall  thereafter have the right to purchase and receive upon the basis and upon
the terms and conditions specified herein and in the Warrants and in lieu of the
shares of the Common Stock  immediately  theretofore  purchasable and receivable
upon the exercise of the rights represented by each such Warrant, such shares of
stock,  securities  or assets as may be issued or payable  with respect to or in
exchange  for a number of  outstanding  shares of such Common Stock equal to the
number of shares of such Common Stock  immediately  theretofore  purchasable and
receivable upon the exercise of the rights  represented by each such Warrant had
such reorganization,  reclassification,  consolidation, merger or sale not taken
place, and in any such case appropriate provisions shall be made with respect to
the rights and interest of the holder of each Warrant  then  outstanding  to the
end that the provisions thereof  (including  without  limitation  provisions for
adjustment of the Warrant Price and of the number of shares purchasable upon the
exercise of each Warrant then  outstanding)  shall  thereafter  be applicable as
nearly  as may be in  relation  to any  shares of  stock,  securities  or assets
thereafter deliverable upon the exercise of each Warrant.

         H. No adjustment of the Warrant Price shall be made in connection  with
the  issuance or sale of shares of Common Stock  issuable  pursuant to currently
outstanding  options and  warrants  granted to officers,  directors,  employees,
advisory directors, or affiliates of the Company.

<PAGE>

         I.  Whenever  the Warrant  Price is adjusted  as herein  provided,  the
Company shall (a) forthwith file with the Warrant Agent a certificate  signed by
the Chairman of the Board or the  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,  showing in detail the facts requiring such adjustment
and the Warrant Price and the number of shares of Common Stock  purchasable upon
exercise of the Warrants  after such  adjustment  and (b) cause a notice stating
that such  adjustment  has been effected and stating the adjusted  Warrant Price
and the  number of  shares of Common  Stock  purchasable  upon  exercise  of the
Warrants to be  published  at least once a week for two  consecutive  weeks in a
newspaper of general circulation in Dallas, Texas and in New York, New York. The
Company,  at its  option,  may  cause a copy of such  notice to be sent by first
class  mail,  postage  prepaid,  to each  registered  holder of  Warrants at his
address appearing on the Warrant register.  The Warrant Agent shall have no duty
with  respect to any such  certificate  filed with it except to keep the same on
file and  available  for  inspection  by holders of Warrants  during  reasonable
business  hours.  The  Warrant  Agent shall not at any time be under any duty or
responsibility  to any holder of a Warrant to determine  whether any facts exist
which may require any  adjustment of the Warrant  Price,  or with respect to the
nature or extent of any  adjustment  of the  Warrant  Price when  made,  or with
respect to the method employed in making such adjustment.

         J. The  Company  may  retain  a firm of  independent  certified  public
accountants  of  recognized  standing  (which  may be the  firm  that  regularly
examines  the  financial  statements  of the  Company)  selected by the Board of
Directors of the Company or the  Executive  Committee of said Board and approved
by the Warrant Agent, to make any computation required under this Section 8, and
a  certificate  signed  by  such  firm  shall  be  conclusive  evidence  of  the
correctness of any computation made under this Section 8.

         K. In case at any time conditions shall arise by reason of action taken
by the Company  which,  in the opinion of the Board of Directors of the Company,
are not adequately  covered by the other  provisions of this Agreement and which
might materially and adversely affect the rights of the holders of the Warrants,
or in case at any time any such  conditions  are  expected to arise by reason of
any action  contemplated  by the Company,  the Board of Directors of the Company
shall appoint a firm of independent  certified public  accountants of recognized
standing (which may be the firm that regularly examines the financial statements
of the Company), who shall give their opinion as to the adjustment,  if any (not
inconsistent  with the standards  established in this Section 8), of the Warrant
Price and the  number of shares of  Common  Stock  purchasable  pursuant  hereto
(including,  if  necessary,  any  adjustment  as to the  property  which  may be
purchasable  in lieu thereof upon exercise of the  Warrants)  which is, or would
be,  required  to  preserve  without  dilution  the rights of the holders of the
Warrants.  The Board of  Directors  of the  Company  shall  make the  adjustment
recommended forthwith upon the receipt of such opinion or the taking of any such
action contemplated,  as the case may be; provided,  however, that no adjustment
of the Warrant  Price shall be made which in the  opinion of the  accountant  or
firm of accountants  giving the aforesaid opinion would result in an increase of
the  Warrant  Price to more than the  Warrant  Price  then in  effect  except as
otherwise provided in subsection E of this Section 8.

         9. No Fractional Interests.  The Company shall not be required to issue
fractions of shares of Common Stock on the exercise of Warrants. If any fraction
of a share of Common Stock would,  except for the provisions of this section, be
issuable on the exercise of any warrant (or  specified  portions  thereof),  the
Company shall  purchase such fraction for an amount in cash equal to the current
value of such  fraction  (a)  computed,  if the Common  Stock shall be listed or
admitted to unlisted trading  privileges on any national or regional  securities
exchange,  on the basis of the last  reported  sale price of the Common Stock on
such  exchange on the last business day prior to the date of exercise upon which
such a sale shall have been effected (or, if the Common Stock shall be listed or
admitted to unlisted trading  privileges on more than one such exchange,  on the
basis  of such  price  on the  exchange  designated  from  time to time for such
purpose by the Board of Directors of the Company) or (b) computed, if the Common
Stock shall not be listed or admitted to  unlisted  trading  privileges,  on the
basis of the  average of the high and low bid prices of the Common  Stock in the
Nasdaq Stock Market, on the last business day prior to the date of exercise.

         10.      Notice to Warrant Holders.

<PAGE>

         A. Nothing  contained in this Agreement or in any of the Warrants 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  for the election of directors of the Company or any other matters,
or any rights whatsoever as stockholders of the Company; provided, however, that
in the event that a meeting of stockholders shall be called to consider and take
action on a proposal for the voluntary dissolution of the Company, other than in
connection with a consolidation, merger or sale of all, or substantially all, of
its  property,  assets,  business and goodwill as an entirety,  then and in that
event the Company  shall cause a notice  thereof to be published at least once a
week for two consecutive weeks in a newspaper of general  circulation in Dallas,
Texas and New York, New York, such  publication to be completed at least 20 days
prior to the date  fixed as a record  date or the date of closing  the  transfer
books  for the  determination  of the  stock  holders  entitled  to vote at such
meeting.  The Company shall also cause a copy of such notice to be sent by first
class  mail,  postage  prepaid,  at least 20 days  prior to said date fixed as a
record  date or said date of closing  the  transfer  books,  to each  registered
holder of Warrants at his address appearing on the Warrant register; but failure
to mail or receive such notice or any defect  therein or in the mailing  thereof
shall not  affect  the  validity  of any action  taken in  connection  with such
voluntary  dissolution.  If such  notice  shall have been so given and if such a
voluntary  dissolution  shall be authorized  at such meeting or any  adjournment
thereof,  then for and after the date on which such voluntary  dissolution shall
have been duly authorized by the stockholders,  the purchase rights  represented
by the Warrants and other rights with respect thereto shall cease and terminate.

         B. If the Company shall make any distribution on, or to holders of, its
Common Stock (or other  property  which may be  purchasable in lieu thereof upon
the  exercise of Warrants) of any  property  (other than a cash  dividend),  the
Company  shall cause a notice of its intention to make such  distribution  to be
published  at least  once a week for two  consecutive  weeks in a  newspaper  of
general circulation in Dallas, Texas and New York, New York, such publication to
be  completed  at least 20 days prior to the date fixed as a record  date or the
date of closing the transfer  books for the  determination  of the  stockholders
entitled to receive such  distribution.  The Company  shall also cause a copy of
such notice to be sent by first class mail,  postage  prepaid,  at least 20 days
prior to said date fixed as a record date or said date of closing  the  transfer
books,  to each  registered  holder of Warrants at his address  appearing on the
Warrant  register;  but failure to mail or to receive  such notice or any defect
therein or in the mailing  thereof  shall not affect the  validity of any action
taken in connection with such distribution.

         11.      Disposition of Proceeds on Exercise of Warrants.

         A. The Warrant Agent shall account promptly to the Company with respect
to Warrants exercised and concurrently pay to the Company all monies received by
the Warrant Agent for the purchase of shares of the Company's  stock through the
exercise of such 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.

         12.      Redemption of Warrants.

         A. At any time on or after the  Warrants and the shares of Common Stock
are separately traded, the Company may, at its option, redeem some or all of the
outstanding Warrants at $0.05 per Warrant,  upon thirty (30) days' prior written
notice,  if the closing  sale price of the Common  Stock on the  American  Stock
Exchange or any other national securities exchange, or the closing bid quotation
on the Nasdaq  Stock  Market,  has  equaled or  exceeded  $_______  for ten (10)
consecutive  trading days  preceding the date notice of redemption is given (the
"Redemption  Price"). In order to redeem the Warrants,  the Company must have on
file  with  the  Securities  and  Exchange  Commission  a  current  registration
statement pertaining to the Common Stock underlying the Warrants.

     B. The election of the Company to redeem some or all of the Warrants  shall
be evidenced by a resolution of the Board of Directors of the Company.

     C.  Warrants  may be  exercised at any time on or before the date fixed for
redemption (the "Redemption Date").

         D. Notice of  redemption  shall be given by first  class mail,  postage
prepaid,  mailed not less than 30 nor more than 60 days prior to the  Redemption
Date,  to each  holder of  Warrants,  at his  address  appearing  in the Warrant
register.

         All notices of redemption shall state:
     (1) The Redemption Date;

     (2) That on the Redemption  Date the  Redemption  Price will become due and
payable upon each Warrant;

     (3) The place where such Warrants are to be surrendered  for redemption and
payment of the Redemption Price; and

<PAGE>

                           (4) The current  Warrant Price of the  Warrants,  the
                  place or places  where such  Warrants may be  surrendered  for
                  exercise,  and the time at which  the  right to  exercise  the
                  Warrants will terminate in accordance with this Agreement.

     E. Notice of redemption of Warrants at the election of the Company shall be
given by the Company or, at the Company's  request,  by the Warrant Agent in the
name and at the expense of the Company.

         F. Prior to any  Redemption  Date,  the Company  shall deposit with the
Warrant Agent an amount of money  sufficient to pay the Redemption  Price of all
the Warrants  which are to be redeemed on that date. If any Warrant is exercised
pursuant to Section 5, any money so  deposited  with the  Warrant  Agent for the
redemption of such Warrant shall be paid to the Company.

         G. Notice of redemption having been given as aforesaid, the Warrants so
to be  redeemed  shall,  on  the  Redemption  Date,  become  redeemable  at  the
Redemption  Price  therein  specified and on such date (unless the Company shall
default in the payment of the Redemption Price), such Warrants shall cease to be
exercisable  and  thereafter  represent only the right to receive the Redemption
Price.  Upon surrender of such Warrants for  redemption in accordance  with said
notice, such Warrants shall be redeemed by the Company for the Redemption Price.

         13. 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  15 of this  Agreement.  In case at the  time  such
successor  to the  Warrant  Agent  shall  succeed to the agency  created by this
Agreement and at such time any of the Warrants shall have been countersigned but
not  delivered,   any  such  successor  to  the  Warrant  Agent  may  adopt  the
countersignature   of  the   Warrant   Agent  and  deliver   such   warrants  so
countersigned;  and in case at the time any of the Warrants  shall not have been
countersigned,  any successor to the Warrant Agent may countersign such Warrants
either  in the  name of the  predecessor  Warrant  Agent  or in the  name of the
successor warrant agent; and in all such cases such Warrants shall have the full
force provided in the Warrant and in this Agreement.

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

     14. 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 Warrants 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 distribution of the Warrants 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 Warrants 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 to perform any duty hereunder either itself or by or through
its attorneys, agents or employees.

<PAGE>

         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 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 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 appropriate charges 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
reasonable  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.

         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 Warrants shall
furnish the Warrant  Agent with  reasonable  security and indemnity for any cost
and expense which may be incurred, but this provision shall not affect the power
of the  Warrant  Agent to take such  action as the  Warrant  Agent may  consider
proper,  whether with or without any such security or  indemnity.  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 Warrants 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
interests 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 peculiarly  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 not in a
ministerial  capacity,  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.

         15.  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 Warrants notice by  publication,  of such
resignation,  specifying a date when such resignation  shall take effect,  which
notice shall be published  at least once a week for two  consecutive  weeks in a
newspaper of general circulation in Dallas,  Texas and New York, New York, prior
to the date so specified. The Warrant Agent may be removed by like notice to the
Warrant  Agent from the Company and by like  publication.  If the Warrant  Agent
shall resign or be removed 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 such removal or
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 (who shall,  with such notice,  submit his warrant for inspection by the
Company),  then the  registered  holder of a  Warrant  may apply to any court of
competent jurisdiction for the appointment of a successor to the Warrant Agent.

<PAGE>

         Any successor  warrant  agent,  whether  appointed by the Company or by
such a court,  shall be a bank or trust company having its principal office, and
having  capital  and  surplus  as  shown  by its last  published  report  to its
stockholders,  of at least $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
file or publish 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.

         16. Identify of Transfer  Agent.  Forthwith upon the appointment of any
Transfer  Agent for the Common  Stock or of any  subsequent  Transfer  Agent for
shares of the  Common  Stock or other  shares  of the  Company's  capital  stock
issuable  upon  the  exercise  of the  rights  of  purchase  represented  by the
Warrants, the Company will file with the Warrant Agent a statement setting forth
the name and address of such Transfer Agent.

         17. Notices.  Any notice pursuant to this Agreement to be given or made
by the  Warrant  Agent or the  registered  holder  of any  Warrant  to or on the
Company shall be sufficiently given or made 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:

                  Aarica Holdings, Inc.
                  195 Wekiva Springs Road, Suite 322
                  Longwood, Florida 32779

         Any  notice  pursuant  to this  Agreement  to be  given  or made by the
Company or the registered holder of any Warrant to or on the Warrant Agent shall
be  sufficiently  given or made 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:

                  American Stock Transfer & Trust Co.
                  40 Wall Street
                  New York, New York 10005

         18.  Supplements and Amendments.  The Company and the Warrant Agent may
from time to  supplement  or amend this  Agreement  without the  approval of any
holders  of  Warrants  (i) 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;  (ii) to extend  the  expiration  date of the
Warrants or lower the Warrant  Price;  or (iii) 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  be
inconsistent  with the  provisions of the Warrants and which shall not adversely
affect the interests of the holders of Warrants.

     19.  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.

         20.  Merger or  Consolidation  of the  Company.  The Company  shall not
effect  any  consolidation  or merger  with,  or sale of  substantially  all its
property to, any other  corporation  unless the corporation  resulting from such
merger (if not the Company) or consolidation or the corporation  purchasing such
property shall expressly assume, by supplemental  agreement satisfactory in form
to the Warrant  Agent and executed and delivered to the Warrant  Agent,  the due
and punctual performance and observance of each and every covenant and condition
of this Agreement to be performed and observed by the Company, such agreement by
the Warrant Agent not to be unreasonably withheld.

     21. Florida  Contract.  This  Agreement and each Warrant  issued  hereunder
shall be deemed to be a contract made under the laws of the State of Florida and
for all purposes shall be construed in accordance with the laws of said state.

         22.  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 Warrants 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 Warrants.

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

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date hereof.

                                                     AARICA HOLDINGS, INC.

                                                     By:-------------------
                                                     Carol Kolozs, President

                                       AMERICAN STOCK TRANSFER & TRUST CO.

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

<PAGE>

                                                        No. ____

                                    EXHIBIT A

                                     FORM OF

                              AARICA HOLDINGS, INC.

                    REDEEMABLE COMMON STOCK PURCHASE WARRANT

                      TO PURCHASE ONE SHARE OF COMMON STOCK

                      EXERCISABLE ON OR BEFORE 5:00 P. M.,

                 NEW YORK, NEW YORK TIME, September _____, 2005

         This Warrant Certifies that  _____________________________________,  or
registered assigns, is the holder of _______________  Warrants expiring _______,
2005, to purchase shares of Common Stock,  $.01 par value per share (the "Common
Stock"),  of Aarica Holdings,  Inc., a Texas  corporation (the "Company").  Each
Warrant  entitles the holder to purchase  from the Company at any time after the
Shares and Warrants become separately tradable and until 5:00 p.m. New York, New
York time, on _________,  2005,(the "Expiration Date"),  ___________  fully-paid
and  non-assessable  shares of Common Stock at the exercise price (the "Exercise
Price") of $_____ per share,  upon  surrender  of this Warrant  Certificate  and
payment of the  Exercise  Price at the office or agency of the Warrant  Agent in
New York,  New York,  but only subject to the conditions set forth herein and in
the Warrant  Agreement.  Payment of the Exercise Price may be made in cash or by
certified  check payable to the order of the Company.  As used herein,  "Shares"
refers to the Common Stock offered by the  Prospectus  dated  September___,2000,
and,  where  appropriate,  to the other  securities  or property  issuable  upon
exercise  of a  Warrant  as  provided  for in the  Warrant  Agreement  upon  the
happening of certain events set forth in the Warrant Agreement.

         No Warrant may be exercised  after 5:00 p.m.,  New York, New York time,
on the  Expiration  Date. To the extent not exercised by such time, the Warrants
shall be cancelled and retired  notwithstanding  delivery of the related Warrant
Certificate. All Warrants evidenced hereby shall thereafter be void.

         Reference  is hereby made to the  provisions  of the Warrant  Agreement
between Aarica Holdings, Inc., a Texas corporation (the "Company"), and American
Stock  Transfer & Trust Co., New York,  New York, as warrant agent (the "Warrant
Agent") and such further  provisions shall for all purposes have the same effect
as though fully set forth herein.

         This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent.

Dated: September ____,  2000.
                                                     AARICA HOLDINGS, INC.

                                          By:     ---------------------
                                                      Carol Kolozs, President

                                           AMERICAN STOCK TRANSFER & TRUST CO.,
                                              as Warrant Agent

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

<PAGE>

                                     FORM OF

                              ELECTION TO PURCHASE

Aarica Holdings, Inc.
c/o American Stock Transfer & Trust Co.
40 Wall Street
New York, New York 10005

         The  undersigned  hereby  irrevocably  elects to exercise  the right of
purchase  represented  by the within  Warrant for,  and to purchase  thereunder,
shares of the stock  provided for therein,  and requests that  certificates  for
such shares  shall be issued in the name of and be  delivered to at and, if said
number of shares shall not be all of the shares purchasable  thereunder,  that a
new Warrant for the balance remaining of the shares purchasable under the within
Warrant be registered in the name of, and delivered to, the  undersigned  at the
address stated below.

Date:___________________

Name of Warrant Holder:______________________________
                                    (Please Print)

Signature:___________________________________________
           (Signature must conform in all respects to name of
             holder as specified on the face of the Warrant
            Certificate)

Address:____________________________________________
         ============================================

<PAGE>

                                     FORM OF

                                   ASSIGNMENT

         For value  received,  does hereby well,  assign and  transfer  unto the
within Warrant,  together with all right,  title and interest therein,  and does
hereby irrevocably  constitute and appoint attorney, to transfer said Warrant on
the books of the  within-named  Corporation,  with full power of substitution in
the promises,

Date:___________________

Signature:___________________________________________
            (Signature must conform in all respects to name of
              holder as specified on the face of the Warrant
              Certificate)1

                                 LOAN AGREEMENT

     THIS LOAN AGREEMENT  ("Agreement") is made this 8th day of March,  1999, by
and among AARICA HOLDINGS,  INC., a Texas corporation,  (hereinafter  called the
"Borrower,"),  CAROL KOLOZS  (hereinafter  called the "Guarantor") and ROBERT E.
SCHMIDT, JR. (hereinafter called the "Lender").

                                   WITNESSETH:

                               ARTICLE I. THE LOAN

         The  Borrower  has  borrowed  from Lender the sum of Two Hundred  Forty
Thousand and No/100 Dollars  ($240,000.00)  with the  obligations of Borrower to
Lender to be guaranteed by Guarantor ("Original Loan").

         Further,  the Borrower agrees to borrow from the Lender, and the Lender
agrees to lend to the Borrower the sum of Two Hundred Fifty  Thousand and No/100
Dollars  ($250,000.00)  with  the  obligations  of  Borrower  to  Lender  to  be
guaranteed by Guarantor ("Second Loan").  (The Original Loan and Second Loan are
hereinafter  collectively  referred to as the "Loan").  The Second Loan is to be
distributed as follows:
<TABLE>
<S>       <C>

         (a)      $50,000.00 in the form of a wire transfer or bank check;

         (b)      Letter of Credit in the amount of $150,000.00 for the benefit of Shing Tak; and

         (c)      Letter of Credit in the amount of $50,000.00 for the benefit of Taimark.

</TABLE>

                    ARTICLE II. THE NOTE AND PLEDGE AGREEMENT

         The  obligation to repay the Loan shall be evidenced by the  Borrower's
Promissory Note and Replacement Promissory Note, hereinafter collectively called
the "Note," both in substantially the form of Exhibit "A" hereto attached.

                          ARTICLE III. REPRESENTATIONS

         The  Borrower  and  Guarantor  represent  and  warrant to the Lender as
follows:

<PAGE>

                                  Good Standing

         3.01. The Borrower is a corporation  duly organized and existing and in
good  standing  under  the laws of the  State of  Texas.  The  Borrower  has the
corporate  power to own its  property  and to carry on its business as now being
conducted  and is duly  qualified to do business and is in good standing in each
jurisdiction in which the  transaction of its business makes such  qualification
necessary in the judgment of the Borrower.

                               Corporate Authority

         3.02.  The  Borrower  has full power and  authority  to enter into this
Agreement,  to borrow the funds,  to execute and deliver the Note,  and to incur
the  obligations  provided  for in this  Agreement,  all of which have been duly
authorized  by all  proper and  necessary  corporate  action.  The  consent  and
approval of the Borrower's  Board of Directors and its  shareholders is shown by
their duly adopted resolution attached hereto and incorporated herein.

                                Binding Agreement

         3.03. This Agreement constitutes, and the Note and Guaranty when issued
and delivered for value received will constitute,  the legal, valid, and binding
obligation of the Borrower and Guarantor in accordance  with its terms,  subject
to  bankruptcy  and  insolvency  laws and any other laws of general  application
affecting the rights and remedies of creditors.

                                   Litigation

         3.04.  There are no  proceedings  pending or, so far as the officers of
the Borrower know,  threatened before any court or administrative  agency which,
in the opinion of the officers of the Borrower, will materially adversely affect
the financial condition or operations of the Borrower.

                            No Conflicting Agreements

         3.05. There is no charter, regulation, or preference stock provision of
the Borrower and no provision of any existing mortgage, indenture,  contract, or
agreement  binding on the  Borrower  or  affecting  its  property,  which  would
conflict with or in any way prevent the execution,  delivery, or carrying out of
the terms of this Agreement and of the Note and Pledge Agreement.

                               Financial Condition

<PAGE>

         3.06.  The Borrower and  Guarantor  agree that they will, at all times,
make  their  best good  faith  effort to keep in as good a  financial  condition
throughout the term of this Agreement as it is in on this date. The Borrower and
Guarantor  represent and warrant that there has been no material  adverse change
in the Borrower's  financial condition since that set forth in the September 30,
1998 financial  statements prepared by Arthur Anderson and previously  delivered
to Lender.  The Borrower and Guarantor  further agree to immediately  advise the
Lender of any material adverse change in either of their financial  condition or
operations, or of any litigation, claim, or cause of action that may bring about
any material damage to the Borrower and/or Guarantor.

     3.07. The stock of the Mexican  entities have been transferred to the U. S.
holding company and are wholly owned subsidiaries of the U. S. holding company.

                        ARTICLE IV. CONDITIONS OF LENDING

         The  obligation  of the  Lender  to make  the  loan is  subject  to the
following conditions precedent:

                                   Compliance

         4.01.  The Lender shall have received a  certificate  dated the date of
the loan and signed by an executive  officer of the Borrower to the effect that:
(1) the Borrower has complied, and is then in compliance, with all the terms and
covenants of this  Agreement that are binding upon it; (2) there exists no event
of default as defined in Article IX and no event that, with the giving of notice
or the lapse of time, or both,  would  constitute such an event of default;  and
(3) the  representations  and warranties  contained in Article III are true with
the same effect as though such  representations  and warranties had been made at
the time of the loan.

                          Evidence of Corporate Action

         4.02.  The Lender shall have received  copies of all  corporate  action
taken by the  Borrower  to  authorize  this  Agreement,  the  Note and  Security
Agreement and the borrowing  hereunder,  and such other  documents as the Lender
may reasonably require.

                     ARTICLE V. CONVERSION OF ORIGINAL LOAN

         Borrower  is making a  private  offering  of its  stock.  Lender  shall
convert any unpaid  principal  and/or  interest on the Original Loan to stock of
the Borrower at eighty  percent  (80%) of the offering  price.  Such  conversion
shall  occur at such time as Borrower  has issued the  minimum  number of shares
required under such offering as set forth in the Confidential  Private Placement
Memorandum of AARICA Holdings, Inc. as referenced on Exhibit B (the "Offering").
The Borrower and  Guarantor  agree that no material  changes will be made to the
terms of the Offering without the written approval of the Lender.

<PAGE>

                ARTICLE VI. SUBORDINATION OF NOTES AND DEBENTURES

         The  principal  amounts of any  debenture,  bonds or notes,  promissory
notes, loans or other instruments of indebtedness  issued or to be issued by the
Borrower to  Guarantor,  any  shareholder,  other than  Lender,  subsidiary,  or
affiliated or related  corporation shall at all times be subject and subordinate
to the Note described in Article II.

                       ARTICLE VII. AFFIRMATIVE COVENANTS

         Until  payment  in  full  of the  Note  and  performance  of all  other
obligations of the Borrower under this agreement, the Borrower will:

                                      Taxes

         7.01. Except as described in the Offering, pay and discharge all taxes,
assessments,  and governmental  charges upon it, its income,  and its properties
prior to the date on which penalties are attached, unless and only to the extent
that the taxes are contested in good faith and by appropriate proceedings by the
Borrower; and accrue all such taxes quarterly.

                           Quarterly Financial Reports

         7.02.  Provide  quarterly  financial reports to the Lender on or before
the 45th day after the end of each  calendar  quarter  during the time period in
which any indebtedness is outstanding.  Financial reports shall include, but are
not  limited  to,  profit  and loss  statements,  balance  sheets  and cash flow
projections.   Annually,  Borrower  and  Guarantor  shall  provide  Lender  with
financial  statements  and reports  prepared and approved by a certified  public
accountant  licensed  to  practice in the  appropriate  jurisdiction  reasonably
acceptable  to Lender,  to be delivered  within ninety (90) days of the close of
Borrower's fiscal year on Borrower and all subsidiaries.

                                    Insurance

         7.03.  Maintain insurance with responsible  insurance companies of such
of its  properties,  in such  amounts and against  such risks as is  customarily
maintained by similar  businesses  operating in the same  vicinity,  and furnish
evidence and a detailed list thereof to the Lender,  upon request.  Lender shall
be named as an Additional Insured on all such policies of insurance.

                        ARTICLE VIII. NEGATIVE COVENANTS

         Until  payment  in  full  of the  Note  and  performance  of all  other
obligations of the Borrower under this agreement,  the Borrower will not, except
with the prior express written consent of the Lender:

<PAGE>

                                      Loans

     8.01.  Make any  material  (i.e.,  other than typical  payroll  advances to
employees consistent with past practices) loans or advances to any person, firm,
or corporation, or permit any subsidiary so to do, except: repayment of the Note
to Lender.

                                   Investments

         8.02.  Purchase  or acquire the  obligations  or stock of, or any other
interest in, any person, firm, corporation,  or other enterprise whatsoever,  or
permit any  subsidiary so to do,  except:  (1) direct  obligations of the United
States of America;  (2)  obligations  and stock of any  corporation  that hereby
becomes a subsidiary;  (3) obligations and stock of any wholly-owned subsidiary;
or (4)  obligations  or stock of any other  person,  firm,  or  corporation  not
exceeding, at cost, $1,000 in the aggregate at any one time outstanding.

                                      Stock

         8.03.  Alter the capital  structure of the corporation in any manner or
issue  additional  stock,  whether to new or existing  shareholders  and whether
authorized or in treasury, without the prior written consent of Lender.

                                     Salary

         8.04.  Borrower and Guarantor agree they shall not increase salaries of
executives,  including but not limited to, management fees and compensation paid
to  Guarantor  or any  related  party,  during  the time  period  in  which  any
indebtedness under the loan remains  outstanding.  Borrower  represents that the
existing compensation paid to Guarantor is $15,000.00 per month.

                       Changes in Business; Sale of Assets

         8.05. Sell, assign, lease, transfer, or convey assets other than in the
usual  and  regular  course of  business;  merge or  consolidate  with any other
corporation; enter into a joint venture or similar business arrangement with any
third party; modify the nature and type of business presently engaged in; do any
act that may jeopardize the Borrower from  continuing to exist as an independent
business.

         8.06.  Borrower shall not undertake any action, or otherwise permit any
inaction,   which  will  adversely  effect,  impair,   terminate  or  jeopardize
Borrower's business licenses.

         8.07 Other than in the ordinary course of business,  Borrower shall not
incur any additional indebtedness without the express written consent of Lender,
except for shareholder loans, which indebtedness shall be subordinate to payment
of the  indebtedness  owed to  Lender,  and  subordinate  to  Lender's  security
interests in Borrower's issued and outstanding stock.

<PAGE>

                          ARTICLE IX. EVENTS OF DEFAULT

         9.01.    The following shall be considered an "Event of Default":

         (1)  Default  shall  be  made  in the  payment  of any  installment  of
principal  or of  interest  upon the Note for a period of ten (10) days after it
has become due and  payable,  whether at  maturity,  by notice of  intention  to
prepay, or otherwise; or

         (2) Default shall be made in the due  observance or  performance of any
term,  covenant,  or  provision of the Note and other loan  documents,  and such
default has continued unremedied for a period of ten (10) days; or

         (3)  Any  representation  or  warranty  made  by  the  Borrower  or any
statement  or  representation  made  in  any  certificate,  report,  or  opinion
delivered  pursuant to this agreement  shall prove to have been incorrect in any
material respect when made; or

         (4) The  Borrower  makes an  assignment  for the benefit of  creditors,
files a petition in bankruptcy, is adjudicated insolvent or bankrupt,  petitions
or applies to any  tribunal  for any  receiver or any trustee of the Borrower or
any substantial part of its property,  commences any proceeding  relating to the
arrangement or readjustment of debt, or for dissolution or liquidation under any
law or statue of any  jurisdiction,  whether now or hereafter  in effect,  or if
there is  commenced  against  the  Borrower  any such  proceeding  that  remains
undismissed  for a  period  of  sixty  (60)  days,  or the  Borrower  by any act
indicates its consent,  approval of, or  acquiescence  in any such proceeding or
the  appointment  of any  receiver  of or any  trustee  for the  Borrower or any
substantial part of its property,  or permits any receivership or trusteeship to
continue undischarged for a period of thirty (30) days; or

         (5) Any final judgment  against the Borrower or any attachment  against
its property for any amount in excess of $50,000.00 remains unpaid,  unstayed on
appeal, undischarged, unbonded, or undismissed for a period of sixty (60) days.

                              ARTICLE X. MANAGEMENT

         The Borrower  agrees to give the Lender prompt notice in the event that
CAROL KOLOZS shall cease, for any reason, to be an officer,  director or manager
of the Borrower.  In this event,  then Lender may,  after receipt of the notice,
request payment of the Note, and it shall immediately become due and payable.

<PAGE>

                           ARTICLE XII. MISCELLANEOUS

                                    Expenses

         11.01.  The Borrower agrees to pay for Borrower's  counsel fees and all
expenses incurred in connection with the preparation of this Agreement, and loan
documents  and the  perfection  of any security  interests  required by the Loan
Documents in an amount not to exceed $5,000.00.

                                    No Waiver

         11.02.  The Lender  shall not by any act of omission or  commission  be
deemed to waive any of its rights or remedies  hereunder unless the waiver is in
writing  and is signed by the Lender,  and then only to the extent  specifically
set forth therein; a waiver of one event shall not be construed as continuing or
as a bar to or waiver of the right or remedy on a subsequent event.

                                  Interest Rate

         11.03.  The  Borrower  specifically  agrees  that,  in the  Event  of a
Default,  as defined in Article X, interest shall continue to accrue at the rate
set  forth in the Note and the  Lender  shall be  entitled  to  charge  compound
interest and collect interest at the rate set forth in the Note,  before as well
as after entry of any  judgment,  including  judgment of  foreclosure  and sale,
until payment in full of the balance due is made.

                                   Late Charge

         11.04. In the event that any  installment of principal  and/or interest
is  received  by the Lender  more than ten (10) days after the due date,  a late
payment charge of five percent (5%) of the payment due will be added in addition
to interest at the rate provided  herein.  The Borrower agrees to pay the charge
and interest,  and failure to do so after ten (10) days' notice shall constitute
an Event of Default under Article X of this  Agreement.  This charge shall be in
addition to all other  rights and  remedies  available  to the Lender at law, in
equity, or under this Agreement.

                               Time of the Essence

     11.05.  Time is of the essence in each and every term and condition of this
Agreement, the Note and the Security Agreement.

                              Florida Law To Apply

<PAGE>

         11.06.  BORROWER  AND  GUARANTOR  HEREBY  IRREVOCABLY  SUBMITS  TO  THE
JURISDICTION OF THE SUPREME COURT OF THE STATE OF FLORIDA, COUNTY OF ORANGE, AND
THE  UNITED  STATES  DISTRICT  COURT FOR THE MIDDLE  DISTRICT  OF FLORIDA IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS LOAN AGREEMENT OR ANY OF
THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH, AND BORROWER AND GUARANTOR HEREBY
IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE
HEARD AND  DETERMINED  IN SUCH  FLORIDA  STATE OR FEDERAL  COURT.  BORROWER  AND
GUARANTOR HEREBY  IRREVOCABLY  WAIVE, TO THE FULLEST EXTENT EACH MAY EFFECTIVELY
DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING.  BORROWER AND GUARANTOR ALSO  IRREVOCABLY  CONSENT TO THE SERVICE OF
ANY AND ALL PROCESS IN ANY SUCH ACTION OF PROCEEDING BY THE MAILING OF A COPY OF
SUCH PROCESS TO BORROWER AND GUARANTOR BY  REGISTERED  OR EXPRESS  MAIL,  RETURN
RECEIPT  REQUESTED,  AT EACH ADDRESS SPECIFIED HEREIN.  SUCH SERVICE WILL BECOME
EFFECTIVE THREE (3) BUSINESS DAYS AFTER SUCH MAILING AND WILL BE DEEMED IN EVERY
RESPECT   EFFECTIVE  SERVICE  ON  BORROWER  AND  GUARANTOR  IN  SUCH  ACTION  OR
PROCEEDING.  BORROWER  AND  GUARANTOR  AGREE THAT A FINAL  JUDGMENT  IN ANY SUCH
ACTION  OR  PROCEEDING  SHALL  BE  CONCLUSIVE  AND  MAY  BE  ENFORCED  IN  OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY MANNER PROVIDED BY LAW.

         NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF LENDER TO SERVE LEGAL
PROCESS IN ANY OTHER  MANNER  PERMITTED  BY LAW OR AFFECT THE RIGHT OF LENDER TO
BRING ANY  ACTION OR  PROCEEDING  AGAINST  BORROWER  AND/OR  GUARANTOR  OR THEIR
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

         EACH OF  BORROWER,  GUARANTOR  AND LENDER,  BY ITS  ACCEPTANCE  HEREOF,
HEREBY WAIVES,  TO THE FULLEST EXTENT  PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION  DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN  CONNECTION  WITH THIS  AGREEMENT  OR ANY  AGREEMENT
EXECUTED IN CONNECTION HEREWITH OR IN CONNECTION WITH ANY DEFENSE,  COUNTERCLAIM
OR CROSS CLAIM ASSERTED BY BORROWER AND/OR GUARANTOR IN ANY SUCH LITIGATION.

                                     Notice

         11.08.   Addresses for notices shall be as follows:

If to Borrower:   AARICA HOLDINGS, INC.
                           1080 Howell Branch Road
                           Winter Park, FL  32789

<PAGE>

With a copy to:   Gary Siegel, Esq.
                           6500 S. Highway 17-92
                           Fern Park, FL  32730

If to Lender:              Robert E. Schmidt, Jr.
                           1123 Overcash Drive
                           Dunedin, FL  34698

With a copy to:   James G. Willard, Esq.
                           Shutts & Bowen LLP
                           20 N. Orange Ave., Suite 1000
                           Orlando, FL  32801-4626

         All notices  shall be given by United States  Postal  Service,  postage
prepaid,   certified,  return  receipt  requested,  or  by  recognized  national
overnight  courier  such as  Federal  Express  and  shall be deemed  given  when
received by the party to whom the notice is addressed.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above-written.

                                     LENDER:

                                                   -----------------------------
                                                     Robert E. Schmidt, Jr.

                                    BORROWER:

                                   AARICA HOLDINGS, INC., a Texas corporation

                               By:  ________________________________________
                               Its:________________________________________

                                   GUARANTOR:

                               --------------------------------------
                                  Carol Kolozs

ORL95  106079.2 - LMB

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]