Document:

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                                                                     Exhibit 4.2

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER SECURITIES LAWS.
NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION
WHICH IS EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.

                             STOCK PURCHASE WARRANT

                               vFINANCE.COM, INC.

              To Purchase __________ Shares of the Common Stock of

              THIS CERTIFIES that, for value received, ___________________ (the
"Holder"), is entitled, upon the terms and subject to the conditions hereinafter
set forth, at any time on or after the date hereof (the "Initial Exercise Date")
and on or prior to the close of business on the date which is one year after the
effective date of the Registration Statement, or if no Registration Statement
ever becomes effective, four years from the Initial Exercise Date (the
"Termination Date") but not thereafter, to subscribe for and purchase from
vFinance.com, Inc. (the "Company"), up to _____________________ shares (the
"Warrant Shares") of Common Stock, of the Company (the "Common Stock"). The
purchase price of one share of Common Stock (the "Exercise Price") under this
Warrant shall be $7.20. The Exercise Price and the number of shares for which
the Warrant is exercisable shall be subject to adjustment as provided herein. In
the event of any conflict between the terms of this Warrant and the Common Stock
and Warrants Purchase Agreement among Company and the investors signatory
thereto, including the Holder, dated as of March 31, 2000 (the "Purchase
Agreement") pursuant to which this Warrant has been issued, the Purchase
Agreement shall control. Capitalized terms used and not otherwise defined herein
shall have the meanings set forth for such terms in the Purchase Agreement.

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                  1. TITLE TO WARRANT. Prior to the Termination Date and subject
to compliance with applicable laws and the terms of this Warrant, this Warrant
and all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the holder hereof in person or by duly authorized
attorney, upon surrender of this Warrant together with the Assignment Form
annexed hereto properly endorsed.

                  2. AUTHORIZATION OF SHARES. The Company covenants that all
shares of Common Stock which may be issued upon the exercise of rights
represented by this Warrant will, upon exercise of the rights represented by
this Warrant, be duly authorized, validly issued, fully paid and nonassessable
and free from all taxes, liens and charges in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with
such issue).

                  3. EXERCISE OF WARRANT. Except as provided in Section 4
herein, exercise of the purchase rights represented by this Warrant may be made
at any time or times on or after the Initial Exercise Date, as to not less than
(i) 1,000 Warrant Shares at a time, or, (ii) if this Warrant evidences rights of
a Holder to purchase less than 2,000 unpurchased shares of Common Stock, all
such unpurchased shares, and in either case before the close of business on the
Termination Date by the surrender of this Warrant and the Notice of Exercise
Form annexed hereto duly executed, at the office of the Company (or such other
office or agency of the Company as it may designate by notice in writing to the
registered holder hereof at the address of such holder appearing on the books of
the Company) and upon payment of the Exercise Price of the shares thereby
purchased by wire transfer or cashier's check drawn on a United States bank, the
holder of this Warrant shall be entitled to receive a certificate for the number
of shares of Common Stock so purchased. Certificates for shares purchased
hereunder shall be delivered to the holder hereof within ten (10) Trading Days
after the date on which this Warrant shall have been exercised as aforesaid.
This Warrant shall be deemed to have been exercised and such certificate or
certificates shall be deemed to have been issued, and Holder or any other person
so designated to be named therein shall be deemed to have become a holder of
record of such shares for all purposes, as of the date the Holder faxes a Notice
of Exercise to the Company, provided that such fax notice is followed by
delivery of the original notice and payment to the Company of the Exercise Price
and all taxes required to be paid by Holder, if any, pursuant to Section 5 prior
to the issuance of such shares, have been paid within three (3) Trading Days of
such fax notice. If this Warrant shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the unpurchased shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant. If
there is no registration in effect permitting the resale by the Holder of the
Warrant Shares at any time from and after one year from the issuance date of
this Warrant, then the Holder shall have the right to a "cashless exercise" in
which the Holder shall be entitled to receive a certificate for the number of
shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A) = the average of the high and low trading prices per share of Common Stock
on the Trading Day preceding the date of such election;

(B) = the Exercise Price of the Warrant; and

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(X) = the number of shares issuable upon exercise of the Warrant in accordance
with the terms of this Warrant.

                  4. NO FRACTIONAL SHARES OR SCRIP. No fractional shares or
scrip representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to the Exercise Price.

                  5. CHARGES, TAXES AND EXPENSES. Issuance of certificates for
shares of Common Stock upon the exercise of this Warrant shall be made without
charge to the holder hereof for any issue or federal or state transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the holder of this Warrant or in such name or
names as may be directed by the holder of this Warrant; provided, however, that
in the event certificates for shares of Common Stock are to be issued in a name
other than the name of the holder of this Warrant, this Warrant when surrendered
for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the holder hereof; and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto.

                  6. CLOSING OF BOOKS. The Company will not close its
shareholder books or records in any manner which prevents the timely exercise of
this Warrant.

                  7. TRANSFER, DIVISION AND COMBINATION. (a) the Holder (and its
transferees and assigns), by acceptance of this Warrant, covenants and agrees
that it is acquiring the Warrants evidenced hereby, and, upon exercise hereof,
the Warrant Shares, for its own account as an investment and not with a view to
the resale or distribution thereof. The Warrant Shares have not been registered
under the Securities Act or any state securities laws and no transfer of any
Warrant Shares shall be permitted unless the Company has received notice of such
transfer, at the address of its principal office set forth in the Purchase
Agreement, in the form of assignment attached hereto, accompanied by an opinion
of counsel reasonably satisfactory to the Company that an exemption from
registration of such Warrants or Warrant Shares under the Securities Act is
available for such transfer, except that no such opinion shall be required after
the registration for resale by the Holder of the Warrant Shares, as contemplated
by the Registration Rights Agreement. Upon any exercise of the Warrants,
certificates representing the Warrant Shares shall bear a restrictive legend
substantially identical to that set forth on the face of this Warrant
certificate. Any purported transfer of any Warrant or Warrant Shares not in
compliance with the provisions of this section shall be null and void.

                           (b) This Warrant may be divided or combined with
other Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by Holder or its agent or attorney;
provided, however, that no division of this Warrant shall be permitted which
would create at Warrant with respect to less than 1,000 Warrant Shares. Subject
to compliance with Section 7(a), as to any transfer which may be involved in
such division or combination, the Company shall execute and deliver a new
Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice.

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                           (c) The Company shall prepare, issue and deliver at
its own expense (other than transfer taxes) the new Warrant or Warrants under
this Section 7.

                           (d) The Company agrees to maintain, at its aforesaid
office or the office of its transfer or registration agent, books for the
registration and the registration of transfer of the Warrants.

                  8. NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant does
not entitle the holder hereof to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof. Upon the surrender of
this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares
so purchased shall be and be deemed to be issued to such holder as the record
owner of such shares as of the close of business on the later of the date of
such surrender or payment.

                  9. LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. The
Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
certificate or any stock certificate relating to the Warrant Shares, and in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory
to it (which shall not exceed that customarily charged by the Company's transfer
agent), and upon surrender and cancellation of such Warrant or stock
certificate, if mutilated, the Company will make and deliver a new Warrant or
stock certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant or stock certificate.

                  10. SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or
appointed day for the taking of any action or the expiration of any right
required or granted herein shall be a Saturday, Sunday or a legal holiday, then
such action may be taken or such right may be exercised on the next succeeding
day not a Saturday, Sunday or legal holiday.

                  11. ADJUSTMENTS OF EXERCISE PRICE AND NUMBER OF WARRANT
SHARES. (a) STOCK SPLITS, ETC. The number and kind of securities purchasable
upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the happening of any of the following. In case
the Company shall (i) pay a dividend in shares of Common Stock or make a
distribution in shares of Common Stock to holders of its outstanding Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares of Common Stock, (iii) combine its outstanding shares of Common
Stock into a smaller number of shares of Common Stock or (iv) issue any shares
of its capital stock in a reclassification of the Common Stock, then the number
of Warrant Shares purchasable upon exercise of this Warrant immediately prior
thereto shall be adjusted so that the holder of this Warrant shall be entitled
to receive the kind and number of Warrant Shares or other securities of the
Company which he would have been entitled to receive had such Warrant been
exercised in advance thereof. Upon each such adjustment of the kind and number
of Warrant Shares or other securities of the Company which are purchasable
hereunder, the holder of this Warrant shall thereafter be entitled to purchase
the number of Warrant Shares or other securities resulting from such adjustment
at an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number
of Warrant Shares purchasable pursuant hereto immediately prior to such
adjustment and dividing by the number of Warrant

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Shares or other securities of the Company resulting from such adjustment. An
adjustment made pursuant to this paragraph shall become effective immediately
after the effective date of such event retroactive to the record date, if any,
for such event.

                           (b) REORGANIZATION, RECLASSIFICATION, MERGER,
CONSOLIDATION OR DISPOSITION OF ASSETS. In case the Company shall reorganize its
capital, reclassify its capital stock (other than a change in nominal value to
no nominal value, or from no nominal value to nominal value, or as a result of a
subdivision, combination or other event described in paragraph (a) of this
Section), consolidate or merge with or into another corporation (where the
Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of all or substantially all its property, assets or
business to another corporation and, pursuant to the terms of such
reorganization, reclassification, merger, consolidation or disposition of
assets, shares of common stock of the successor or acquiring corporation, or any
cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or
in lieu of common stock of the successor or acquiring corporation ("Other
Property"), are to be received by or distributed to the holders of Common Stock
of the Company, then Holder shall have the right thereafter to receive, upon
exercise of this Warrant, the number of shares of common stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation,
and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event. In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors of the Company) in order to provide for adjustments of shares of
Common Stock for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section 11.
For purposes of this Section 11, "common stock of the successor or acquiring
corporation" shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable for any such stock, either immediately or upon
the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 11 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

                  12. VOLUNTARY ADJUSTMENT BY THE COMPANY. The Company may at
any time during the term of this Warrant, reduce the then current Exercise Price
to any amount and for any period of time deemed appropriate by the Board of
Directors of the Company.

                  13. NOTICE OF ADJUSTMENT. Whenever the number of Warrant
Shares or number or kind of securities or other property purchasable upon the
exercise of this Warrant or the Exercise Price is adjusted, as herein provided,
the Company shall promptly mail by registered or certified mail, return receipt
requested, to the holder of this Warrant notice of such adjustment or
adjustments setting forth the number of Warrant Shares (and other securities or
property) purchasable upon the exercise of this Warrant and the Exercise Price
of such Warrant Shares (and other securities or property) after such adjustment,
setting forth a brief statement of the facts requiring such adjustment and
setting forth the computation by which such adjustment was made. Such notice, in
the absence of manifest error, shall be conclusive evidence of the correctness
of such adjustment.

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                  14. NOTICE OF CORPORATE ACTION. If at any time:

                           (a) the Company shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive a dividend or
other distribution, or any right to subscribe for or purchase any evidences of
its indebtedness, any shares of stock of any class or any other securities or
property, or to receive any other right, or

                           (b) there shall be any capital reorganization of the
Company, any reclassification or recapitalization of the capital stock of the
Company or any consolidation with or merger of the Company into, or any sale,
transfer or other disposition of all or substantially all the property, assets
or business of the Company to, another corporation or,

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

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 10 days' prior written notice of any record date for such dividend,
distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least 10 days' prior
written notice of the date when the same shall take place. Such notice in
accordance with the foregoing clause also shall specify (i) the date on which
any such record is to be taken for the purpose of such dividend, distribution or
right, the date on which the holders of Common Stock shall be entitled to any
such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding
up is to take place and the time, if any such time is to be fixed, as of which
the holders of Common Stock shall be entitled to exchange their shares of Common
Stock for securities or other property deliverable upon such disposition,
dissolution, liquidation or winding up. Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
16(d).

                  15. AUTHORIZED SHARES. The Company covenants that during the
period the Warrant is outstanding, it will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of the Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase rights under this Warrant.
The Company will take all such reasonable action as may be necessary to assure
that such Warrant Shares may be issued as

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provided herein without violation of any applicable law or regulation, or of any
requirements of the Principal Market upon which the Common Stock may be listed.

              The Company shall not by any action, including, without
limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such actions as may be necessary or appropriate to protect the
rights of Holder against impairment. Without limiting the generality of the
foregoing, the Company will (a) not increase the par value of any shares of
Common Stock receivable upon the exercise of this Warrant above the amount
payable therefor upon such exercise immediately prior to such increase in par
value, (b) take all such action as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (c) use its best efforts to
obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Company to perform its obligations under this Warrant.

              Before taking any action which would result in an adjustment in
the number of shares of Common Stock for which this Warrant is exercisable or in
the Exercise Price, the Company shall obtain all such authorizations or
exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

                  16. MISCELLANEOUS.

                           (a) JURISDICTION. This Warrant shall be binding upon
any successors or assigns of the Company. This Warrant shall constitute a
contract under the laws of New York without regard to its conflict of law,
principles or rules, and be subject to arbitration pursuant to the terms set
forth in the Purchase Agreement.

                           (b) RESTRICTIONS. The holder hereof acknowledges that
the Warrant Shares acquired upon the exercise of this Warrant, if not
registered, will have restrictions upon resale imposed by state and federal
securities laws.

                           (c) NONWAIVER AND EXPENSES. No course of dealing or
any delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice Holder's rights, powers
or remedies, except that all rights hereunder terminate on the Termination Date.
If the Company fails to comply with any provision of this Warrant, the Company
shall pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys' fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

                           (d) NOTICES. Any notice, request or other document
required or permitted to be given or delivered to the holder hereof by the
Company shall be delivered in accordance with the notice provisions of the
Purchase Agreement.

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                           (e) LIMITATION OF LIABILITY. No provision hereof, in
the absence of affirmative action by Holder to purchase shares of Common Stock,
and no enumeration herein of the rights or privileges of Holder hereof, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

                           (f) REMEDIES. Holder, in addition to being entitled
to exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate.

                           (g) SUCCESSORS AND ASSIGNS. Subject to applicable
securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors of the Company
and the successors and permitted assigns of Holder. The provisions of this
Warrant are intended to be for the benefit of all Holders from time to time of
this Warrant and shall be enforceable by any such Holder or holder of Warrant
Shares.

                           (h) AMENDMENT. This Warrant may be modified or
amended or the provisions hereof waived only with the written consent of the
Company and the Holder.

                           (i) SEVERABILITY. Wherever possible, each provision
of this Warrant shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Warrant shall be prohibited
by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provisions of this Warrant.

                           (j) HEADINGS. The headings used in this Warrant are
for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant.

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:               , 2000
      ----------- ---                       vFinance.com, Inc.

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

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                               NOTICE OF EXERCISE

To:      vFinance.com, Inc.

         (1)      The undersigned hereby elects to purchase ________ shares of
                  Common Stock (the "Common Stock"), of vFinance.com, Inc.
                  pursuant to the terms of the attached Warrant, and tenders
                  herewith payment of the exercise price in full, together with
                  all applicable transfer taxes, if any.

         (2)      Please issue a certificate or certificates representing said
                  shares of Common Stock in the name of the undersigned or in
                  such other name as is specified below:

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

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

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

Dated:               ,
      ----------- --- ------

                                 Holder's Signature:
                                                    ----------------------------

                                 Holder's Name:
                                               ---------------------------------

                                 Holder's Address:
                                                  ------------------------------

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

                                 Social Security, Employer
                                 or Other Tax Identification
                                 Number of Holder:
                                                  ------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

              FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to _________________________________________________
whose address is________________________________________________________________
_______________________________________________________________.

Dated:               ,
      ----------- --- ------

                                 Holder's Signature:
                                                    ----------------------------

                                 Holder's Name:
                                               ---------------------------------

                                 Holder's Address:
                                                  ------------------------------

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

                                 Social Security, Employer
                                 or Other Tax Identification
                                 Number of Holder:
                                                  ------------------------------

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

                                       10<PAGE>   1
                                                                   EXHIBIT 10.69

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT is made and entered into as of December 31,
1999, by and between AMERICAN HOMEPATIENT, INC., a Tennessee corporation
(collectively, with its parent, American HomePatient, Inc., a Delaware
corporation, the "Employer"), and THOMAS E. MILLS, a resident of the State of
Tennessee (the "Employee").

                              W I T N E S S E T H:

         WHEREAS, Employer and Employee have agreed to enter into this Agreement
which sets forth certain of the terms and conditions of Employee's employment by
Employer; and

         WHEREAS, Employer employed Employee beginning on November 26, 1998 to
serve as Executive Vice President, Chief Operating Officer of American
HomePatient, Inc., a Delaware corporation.

         NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements made herein, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound hereby, agree as
follows:

         1. EMPLOYMENT. Employer hereby employs Employee and Employee hereby
accepts employment with Employer on the terms and conditions specified herein.

         2. TERM. The term of this Agreement shall be for a period commencing on
the date hereof and ending December 31, 2001; provided, however, that this
Agreement will thereafter automatically renew for consecutive one-year terms
unless either party notifies the other party in writing at least thirty (30)
days prior to the end of the then current term that this Agreement will
terminate at the expiration of such term. Notwithstanding anything to the
contrary contained in this Agreement, except the provisions of Section 8 which
supercede this provision, the provisions of Section 6 and 7 will survive the
expiration or termination of this Agreement.

         3. DUTIES OF EMPLOYEE. Employee shall be responsible for certain
assigned aspects of Employer's operations and shall initially have the title
Executive Vice President, Chief Operating Officer of American HomePatient, Inc.,
a Delaware corporation. Employee shall perform the duties and responsibilities
assigned to Employee from time to time in accordance with the policies and
objectives established by the Board of Directors and Chief Executive Officer of
Employer. Employee agrees to devote his full time, attention and skill to his
duties hereunder and to use his best efforts to attain or exceed Employer's
objective goals for profit, quality, stability and growth. Employee will at all
times while employed by Employer comply fully with Employer's Code of Ethics
Policy ("Guidelines of Company Policies and Conduct"), Corporate Compliance Plan
and any other compliance programs of Employer, as such programs may be amended
from time to time, and acknowledges that his obligations under such programs as
an employee are contractual in nature.

         4. COMPENSATION.

            (a) Beginning January 1, 2000, Employee will be paid a base salary
of Two Hundred Twenty Thousand and No/100 Dollars ($220,000.00) per year for the
remainder of the term

<PAGE>   2

of this Agreement, payable in accordance with Employer's standard payroll
practices. Employee will be entitled to receive incentive of compensation of up
to thirty-five percent (35%) of his annual base salary under such incentive
programs as may from time to time be provided to employees of Employer of
similar rank, which programs may be created, changed or terminated at any time
at Employer's sole discretion. Employer will periodically conduct a merit review
regarding Employee's performance to consider increasing, but not decreasing,
Employee's base salary.

            (b) Employee will receive a monthly automobile allowance of Six
Hundred and No/100 Dollars ($600.00), and Employer will reimburse Employee for
all gasoline and oil expenses incurred in the operation of his personal
automobile.

            (c) Employee will be entitled to such medical, dental, disability
and life insurance benefits, participation in any profit-sharing plan or similar
plans of Employer, and such other employee benefits as are provided to employees
of Employer of similar rank from time to time. In addition, during the term of
this Agreement Employer will reimburse Employee the cost of his individual
disability insurance policy premium paid to Paul Revere Insurance Group.

         5. TERMINATION.

            (a) Employee's employment will be terminable by Employer at any time
for "cause", which will be defined as: (i) gross insubordination, gross
malfeasance, gross misconduct, (ii) charge or conviction of a felony or of a
misdemeanor involving moral turpitude, (iii) the inability of Employee to
perform his duties hereunder for a period of sixty (60) consecutive days (or
ninety (90) total days in any 120 consecutive day period) by reason of illness
or mental or physical disability, and (iv) death. Notwithstanding the above, it
is the intent of the Employer at all times to comply with the Americans With
Disabilities Act, the Family and Medical Leave Act and any other applicable
federal and state employment laws. This Agreement will be terminable by Employee
upon thirty (30) days written notice to Employer if without cause. In the case
of termination under this Section 5(a), all obligations of the parties under
this Agreement and relating to Employee's employment will cease except for
Employee's obligations under Sections 6 and 7 hereof.

            (b) Employee's employment will be terminable by Employee upon
written notice to Employer if Employer willfully breaches any material terms of
this Agreement, after fifteen (15) day's written notice and right to cure.
Employee's employment will also be terminable by Employer at any time without
"cause", as such term is defined above in clause (a). In the case of termination
under this Section 5(b), all obligations of the parties in this Agreement will
cease except for Employee's obligations under Sections 6 and 7 (the continuation
of such obligations being subject to Section 8). If Employer terminates
Employee's employment without "cause", Employee will be entitled to receive (i)
his annual base salary (not including incentive compensation or benefits) plus
his annual automobile allowance, each as in effect at the time of termination,
plus (ii) the annual incentive compensation Employee received for performance
during Employer's immediately preceding fiscal year, multiplied by a fraction,
the numerator of which is the total number of full calendar months during which
Employee was employed by Employer during Employer's current fiscal year prior to
termination and the denominator of which is twelve (12). Employer will pay
Employee such severance in a lump sum promptly following termination. In
addition, Employer will (i) pay Employee promptly following termination any
earned but unpaid base salary through

                                        2

<PAGE>   3

the date of termination, and (ii) pay the COBRA administrative services company
the standard employer portion of the COBRA premium attributable to Employee's
medical and dental insurance benefits as such benefits were in effect
immediately prior to termination with payments beginning on the first day of the
calendar month immediately following the date of termination and continuing
until the earlier of (y) twelve (12) months after the date of termination, or
(z) the date on which Employee is eligible to receive, as an employee,
independent contractor or agent, medical and/or dental insurance benefits from a
third party. Employer will deduct from the lump severance payment due to
Employee the standard employee portion of such COBRA premium as in effect on the
date of termination for a twelve (12) month period. If Employee elects to
discontinue COBRA for any reason before expiration of the applicable period and
notifies Employer of the same in writing, Employer will thereafter refund to
Employee that portion of the deduction, if any, not attributable to the COBRA
premium actually paid. Employer acknowledges that in the event Employer
terminates Employee's employment under this Section 5(b) without "cause",
Employee will be entitled to his individual vested account balance with respect
to Employer's Stock Purchase Plan as such balance, if any, exists as of the date
of termination of employment. Employee acknowledges that in the event Employer
terminates his employment without "cause", he will be entitled to no payments
other than as expressly set forth in this Section 5(b).

            (c) (i) In the event there is a "Change in Control" of the ownership
of Employer, and Employer terminates Employee's employment within twelve (12)
months following such Change in Control, Employee will be entitled to receive as
a severance payment in a lump sum upon such termination an amount equal to the
sum of (i) his monthly base salary (not including incentive compensation or
benefits) as in effect at the time of such termination multiplied by twelve
(12), plus (ii) the annual incentive compensation Employee received for
performance during Employer's immediately preceding fiscal year, multiplied by a
fraction, the numerator of which is the total number of full calendar months
during which Employee was employed by Employer during Employer's current fiscal
year prior to termination and the denominator of which is twelve (12). In
addition, any earned but unpaid base salary and incentive compensation will be
paid, and Employer will pay the COBRA administrative services company the
standard employer portion of the COBRA premium attributable to Employee's
medical and dental insurance benefits as such benefits were in effect
immediately prior to termination with payments beginning on the first day of the
calendar month immediately following termination and continuing until the
earlier of (y) twelve (12) months after the date of termination, or (z) the date
on which Employee is eligible to receive, as an employee, independent contractor
or agent, medical and/or dental insurance benefits from a third party. Employer
will deduct from the severance payment due to Employee, in accordance with its
standard payroll practices, the standard employee portion of such COBRA premium
as in effect on the date of termination for up to a twelve (12) month period. If
Employee elects to discontinue COBRA for any reason before expiration of the
applicable period and notifies Employer of the same in writing, Employer will
thereafter refund to Employee that portion of the deduction, if any, not
attributable to the COBRA premium actually paid. Employer acknowledges that, in
the event of such termination following a Change in Control, Employee will be
entitled to his individual vested account balance with respect to Employer's
Stock Purchase Plans as such balance, if any, exists as of the date of
termination of employment. Further, any stock options granted to Employee will
be fully vested upon a Change of Control, whether or not Employee's employment
is terminated, notwithstanding any previously stated vesting restrictions but
subject to expiration or termination pursuant to the governing stock option
plan. Employee acknowledges that if the provisions of this

                                        3

<PAGE>   4

clause (c) become operative, the payments and obligations of Employer hereunder
are in lieu of any obligation of Employer under Section 5(b), and such
obligations of Employer under Section 5(b) will be rendered null and void.

                (ii) A "Change in Control" will be deemed to have occurred if
         (i) a tender offer will be made and consummated for the ownership of
         more than fifty percent (50%) of the outstanding voting securities of
         Employer, (ii) Employer will be merged or consolidated with another
         corporation and as a result of such merger or consolidation less than
         fifty percent (50%) of the outstanding voting securities of the
         surviving or resulting corporation will be owned in the aggregate by
         the former shareholders of Employer, as the same will have existed
         immediately prior to such merger or consolidation, (iii) Employer will
         sell all or substantially all of its assets to another corporation that
         is not a wholly-owned subsidiary, or (iv) a person, within the meaning
         of Section 3(a)(9) or of Section 13 (d)(3) (as in effect on the date
         hereof) of the Securities and Exchange Act of 1934 ("Exchange Act"),
         will acquire more than fifty percent (50%) of the outstanding voting
         securities of Employer (whether directly, indirectly, beneficially or
         of record). For purposes hereof, ownership of voting securities shall
         take into account and shall include ownership as determined by applying
         the provisions of Rule 13d-3(d)(1)(i) (as in effect on the date hereof)
         pursuant to the Exchange Act. For purposes hereof, a "Change in
         Control" will not include any transaction of the type described above
         with or undertaken by Counsel Corporation or its affiliates, within the
         meaning of Exchange Act Rule 12b-2 (as in effect on the date hereof).

         6. CONFIDENTIAL INFORMATION. In consideration of the covenants of
Employer contained herein, Employee agrees as follows:

            (a) Employee hereby agrees and acknowledges that he has had access
to, will have access to, and is and will become aware of certain confidential,
restricted and/or proprietary information concerning operation by the Employer
and its affiliates of their home health care businesses (collectively the
"Business"). Employee hereby undertakes and agrees that he will have a duty to
Employer and its affiliates to protect such information from use or disclosure.

            (b) For the purposes of this Section 6, the following definitions
will apply:

                (i) "Trade Secret" as related to the Business, will mean any
         specialized technical information or data relating to (w) procurement
         of medical equipment and other inventory for resale; (x) marketing
         strategy or plans of Employer or its affiliates; (y) proprietary
         computer software; and (z) terms of contracts with suppliers, employees
         and principal customers of Employer or its affiliates which are not
         generally known to the competitors of Employer.

                (ii) "Confidential Information," as related to the Business,
         will mean any data or information, other than Trade Secrets, which is
         material to Employer or its affiliates and not generally known by the
         public. Confidential Information will include, without limitation, any
         information pertaining to the Business Opportunities (as hereinafter
         defined) of Employer or its affiliates, the details of this Agreement,
         and the business plans, financial statements and projections of
         Employer or its affiliates.

                                        4

<PAGE>   5

                (iii) "Business Opportunity" will mean any information or plans
         of Employer or its affiliates concerning the purchase of or investment
         in any retail outlets, stores, distribution centers or similar retail
         facilities in the field of home health care, or the availability of any
         such outlets for purchase or investment by Employer or its affiliates,
         together with all related information, concerning the specifics of any
         contemplated purchase or investment (including price, terms and the
         identity of such outlet), regardless of whether Employer or its
         affiliates have entered any agreement, made any commitment, or issued
         any bid or offer to such outlet or other facility.

            (c) Employee will not, without the prior written consent of
Employer, use or disclose, or negligently permit any unauthorized person who is
not an employee of Employer to use, disclose, or gain access to, any Trade
Secrets or Confidential Information.

            (d) Employee hereby agrees to maintain on behalf of Employer, or,
upon request or termination of this Agreement, deliver to Employer, all
memoranda, notes, records, drawings, manuals, documents, disks, computer
software and other materials, including all copies and derivations of such
materials, containing Trade Secrets or Confidential Information, whether made or
compiled by Employee or furnished to him from any source by virtue of his
relationship with Employer or its affiliates.

            (e) Employee will, with reasonable notice during and after his
employment by Employer, furnish information as may be in his possession and
cooperate with Employer or its affiliates as may reasonably be requested in
connection with any claims or legal actions in which Employer is or may become a
party. Employer will reimburse Employee for any reasonable out-of-pocket
expenses he incurs in order to satisfy his obligations under this clause (e).

         7. NONCOMPETE, ETC. In consideration of the covenants of the Employer
contained herein, the Employee agrees as follows:

            (a) During and after his employment by Employer, Employee will not
use his status with Employer to obtain loans, goods or services from another
organization on terms that would not be available to him in the absence of his
relationship to Employer. During the period of employment and for a twelve (12)
month period following termination of such employment for any reason, (i)
Employee will not make any statements or perform any acts intended to advance
the interest of any existing or prospective competitor of Employer in any way
that will injure the interests of Employer or an affiliate; and (ii) Employee
will not directly or indirectly own or hold any "Proprietary Interest" in or be
employed by or receive compensation from any party engaged in the same or any
similar business within fifty (50) miles of any location of Employer upon the
date of termination of employment. The states in which Employer and its
affiliates currently conduct business are Alabama, Arizona, Arkansas, Colorado,
Connecticut, Delaware, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina,
Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee,
Texas, Virginia, Washington, West Virginia and Wisconsin. During his employment
by Employer and for a twelve (12) month period following termination of such
employment for any or no reason, (i) Employee will not solicit any client of
Employer or an affiliate or discuss with any client or

                                        5

<PAGE>   6

employee of Employer or an affiliate any information or the operation of any
business intended to compete with Employer or an affiliate; and (ii) Employee
will not, directly or indirectly, hire any current or future employee of
Employer or an affiliate, or solicit or encourage any such employee to leave the
employ of Employer or an affiliate. For the purposes of this Agreement,
"Proprietary Interest" means legal or equitable ownership, whether through stock
holdings or otherwise, of a debt or equity interest (including options,
warrants, rights and convertible interests) in a business firm or entity, or
ownership of more than 5% of any class of equity interest in a publicly-held
company. Employee acknowledges that the covenants contained herein are
reasonable as to geographic and temporal scope.

            (b) Employee acknowledges that his breach or threatened or attempted
breach of any provision of Section 6 or 7 would cause irreparable harm to
Employer not compensable in monetary damages and that Employer will be entitled,
in addition to all other applicable remedies, to a temporary and permanent
injunction and a decree for specific performance of the terms of Section 6 or 7
without being required to prove damages or furnish any bond or other security.
Nothing herein contained will be construed as prohibiting Employer from pursuing
any other remedy available to it for such breach or threatened or attempted
breach.

            (c) All parties hereto acknowledge the necessity of protection
against the competition of the Employee and that the nature and scope of such
protection has been carefully considered by the parties. The period and area
covered are expressly acknowledged and agreed to be fair, reasonable and
necessary. If any covenant contained in Section 6 or 7 is held to be invalid,
illegal or unenforceable because of the duration of such covenant, the
geographic area covered thereby or otherwise, the parties agree that the court
making such determination will have the power to reduce the duration, the area
and/or other provision(s) of any such covenant to the maximum permissible and to
include as much of its nature and scope as will render it enforceable, and, in
its reduced form said covenant will be valid, legal and enforceable.

         8. PAYMENT BREACH BY EMPLOYER. Notwithstanding anything to the contrary
in this Agreement, Employee's obligations under Sections 6 and 7 will
automatically cease in the event Employer fails to make a severance or other
payment to which Employee is entitled pursuant to Section 5(b) or 5(c).

         9. COVENANT REGARDING CERTAIN PROCEEDINGS. Employee covenants that he
will not, without Employer's prior written consent unless required to do so by
means of a valid court order or subpoena, cooperate with any person in the
institution or prosecution of any proceeding, suit, claim, investigation or
administrative proceeding brought, initiated or conducted by any person against
Employer, its affiliates, agents, employees, officers and representatives.
Employee further covenants that he will notify Employer immediately if he is
contacted by any person regarding any pending or contemplated proceeding, suit,
claim or investigation involving Employer, its affiliates, agents, employees,
officers or representatives. The parties understand that the covenants
stipulated in this paragraph 8 do not limit Employee's ability to initiate or
bring any proceeding, suit, claim or action against Employer regarding his
employment hereunder.

         10. ASSIGNMENTS; SUCCESSORS AND ASSIGNS. The rights and obligations of
Employee hereunder are not assignable or delegable and any prohibited assignment
or delegation will be null

                                        6

<PAGE>   7

and void. Employer may assign and delegate this Agreement. The provisions hereof
shall inure to the benefit of and be binding upon the permitted successors and
assigns of the parties hereto.

         11. GOVERNING LAW. This Agreement will be interpreted under, subject to
and governed by the substantive laws of the State of Tennessee, without giving
effect to provisions thereof regarding conflict of laws, and all questions
concerning its validity, construction, and administration will be determined in
accordance thereby.

         12. COUNTERPARTS. This Agreement may be executed simultaneously in any
number of counterparts, each of which will be deemed an original but all of
which will together constitute one and same instrument.

         13. INVALIDITY. The invalidity or unenforceability of any provision of
this Agreement will not affect any other provision hereof, and this Agreement
will be construed in all respects as if such invalid or unenforceable provision
was omitted. Furthermore, in lieu of such illegal, invalid, or unenforceable
provision there will be added automatically as a part of this Agreement a
provision as similar in terms to such illegal, invalid, or unenforceable
provision as may be possible and be legal, valid and enforceable.

         14. EXCLUSIVENESS. This Agreement, the Guidelines of Company Policies
and Conduct and other policies of Employer constitute the entire understanding
and agreement between the parties with respect to the employment by Employer of
Employee and supersedes any and all other agreements, oral or written, between
the parties.

         15. MODIFICATION. This Agreement may not be modified or amended except
in writing signed by the parties. No term or condition of this Agreement will be
deemed to have been waived except in writing by the party charged with waiver. A
waiver will operate only as to the specific term or condition waived and will
not constitute a waiver for the future or act on anything other than that which
is specifically waived.

         16. NOTICES. All notices, requests, consents and other communications
hereunder will be in writing and will be deemed to have been made when delivered
or mailed first-class postage prepaid by registered mail, return receipt
requested, or when delivered if by hand, overnight delivery service or confirmed
facsimile transmission, to the following:

            (a) If to the Employer, at 5200 Maryland Way, Suite 400, Brentwood,
Tennessee 37027 Attention: President and Chief Executive Officer, or at such
other address as may have been furnished to the Employee by the Employer in
writing; or

            (b) If to the Employee, at 915 Ashford Court, Brentwood, Tennessee
37027 or such other address as may have been furnished to Employer by Employee
in writing.

         17. CONSOLIDATION, MERGER OR SALE OF ASSETS. Nothing in this Agreement
will preclude Employer from consolidating or merging in to or with, or
transferring all or substantially all of its assets to, another corporation
which assumes this Agreement and all obligations and undertaking of Employer
hereunder.

                                        7

<PAGE>   8

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

                                    "EMPLOYER"

                                    AMERICAN HOMEPATIENT, INC.,
                                    a Tennessee corporation

                                    /s/ Joseph F. Furlong
                                    --------------------------------------------
                                    By:    Joseph F. Furlong
                                           -------------------------------------
                                    Title: President & Chief Executive Officer
                                           -------------------------------------

                                    "EMPLOYEE"

                                    /s/ Thomas E. Mills
                                    --------------------------------------------
                                    THOMAS E. MILLS

                                        8

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