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Exhibit 4.9
                               PICK-UPS PLUS INC.
                            PLACEMENT AGENT AGREEMENT

                                                  Dated as of: June  25,  2003

Katalyst Securities LLC
405 Lexington Avenue - 48th Floor
New York, New York 10174

Ladies and Gentlemen:

         The  undersigned,  Pick-Ups  Plus  Inc.,  a Delaware  corporation  (the
"COMPANY"),  hereby agrees with Katalyst Securities LLC., a New York Corporation
(the "PLACEMENT  AGENT") and Cornell Capital  Partners,  LP, a Delaware  Limited
Partnership (the "INVESTOR") as follows:

         1. OFFERING.  The Company hereby engages the Placement  Agent to act as
its  exclusive  placement  agent in  connection  with the Equity  Line of Credit
Agreement  dated  the date  hereof,  (the  "EQUITY  LINE OF  CREDIT  AGREEMENT")
pursuant to which the Company shall issue and sell to the Investor, from time to
time, and the Investor  shall  purchase from the Company (the  "OFFERING") up to
Two Million Dollars  ($2,000,000) of the Company's common stock (the "COMMITMENT
AMOUNT"),  no par value per share (the "COMMON STOCK"), at price per share equal
to the  Purchase  Price,  as that term is defined  in the Equity  Line of Credit
Agreement.  Pursuant to the terms  hereof,  the  Placement  Agent  shall  render
consulting  services  to the Company  with  respect to the Equity Line of Credit
Agreement  and  shall be  available  for  consultation  in  connection  with the
advances to be  requested  by the Company  pursuant to the Equity Line of Credit
Agreement

         All  capitalized  terms used herein and not  otherwise  defined  herein
shall have the same  meaning  ascribed  to them as in the Equity  Line of Credit
Agreement. The Investor will be granted certain registration rights with respect
to the Common Stock as more fully set forth in the Registration Rights Agreement
between the Company and the  Investor  dated the date hereof (the  "REGISTRATION
RIGHTS  AGREEMENT").  The  documents to be executed and  delivered in connection
with the Offering,  including,  but not limited,  to this Agreement,  the Equity
Line of Credit  Agreement,  the Registration  Rights  Agreement,  and the Escrow
Agreement  (the  "ESCROW  Agreement"),  are  referred to  sometimes  hereinafter
collectively as the "OFFERING  MATERIALS." The Company's  Common Stock purchased
by  the  Investor   hereunder  is  sometimes  referred  to  hereinafter  as  the
"SECURITIES." The Placement Agent shall not be obligated to sell any Securities.

         2. COMPENSATION.

         A. Upon the execution of this  Agreement the Company shall issue to the
Placement  Agent or its  designee  shares of the  Company's  Common  Stock in an
amount equal to Ten Thousand Dollars  ($10,000) divided by the Closing Bid Price
of the Company's Common Stock on the date hereof  (collectively,  the "PLACEMENT
AGENT'S  SHARES  "). The  Placement  Agent  shall be  entitled  to  "piggy-back"
registration  rights with respect to the Placement  Agent's Shares in connection

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with any  registration  of any  shares of  Common  Stock for or on behalf of the
Investor pursuant to the Registration Rights Agreement dated the date hereof.

         3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLACEMENT AGENT.

         A. The Placement Agent represents, warrants and covenants as follows:

                  (i) The Placement  Agent has the necessary  corporate power to
enter  into this  Agreement  and to  consummate  the  transactions  contemplated
hereby.

                  (ii) The execution and delivery by the Placement Agent of this
Agreement and the consummation of the transactions  contemplated herein will not
result in any  violation  of, or be in conflict  with,  or  constitute a default
under, any agreement or instrument to which the Placement Agent is a party or by
which the Placement Agent or its properties are bound, or any judgment,  decree,
order or, to the Placement Agent's  knowledge,  any statute,  rule or regulation
applicable to the Placement Agent. This Agreement when executed and delivered by
the Placement Agent, will constitute the legal, valid and binding obligations of
the Placement  Agent,  enforceable in accordance  with their  respective  terms,
except  to the  extent  that (a) the  enforceability  hereof or  thereof  may be
limited by bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or (c) the  indemnification  provisions hereof may be held to be in violation of
public policy.

                  (iii)  Upon  receipt  and  execution  of  this  Agreement  the
Placement Agent will promptly forward copies of this Agreement to the Company or
its counsel and the Investor or its counsel.

                  (iv)  The  Placement  Agent  will not  intentionally  take any
action  that it  reasonably  believes  would  cause the  Offering to violate the
provisions  of the  Securities  Act of 1933,  as amended (the "1933  ACT"),  the
Securities  Exchange  Act of 1934 (the "1934  ACT"),  the  respective  rules and
regulations  promulgated  thereunder (the "RULES AND REGULATIONS") or applicable
"Blue Sky" laws of any state or jurisdiction.

                  (v)  The   Placement   Agent  is  a  member  of  the  National
Association of Securities  Dealers,  Inc., and is a broker-dealer  registered as
such under the 1934 Act and under the securities laws of the states in which the
Securities  will be offered or sold by the  Placement  Agent unless an exemption
for such state  registration is available to the Placement  Agent. The Placement
Agent is in  compliance  in all material  respects  with all material  rules and
regulations  applicable to the Placement  Agent  generally and applicable to the
Placement Agent's participation in the Offering.

         4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         A. The Company represents and warrants as follows:

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                  (i) The  execution,  delivery and  performance of each of this
Agreement,  the Equity Line of Credit Agreement,  the Escrow Agreement,  and the
Registration Rights Agreement has been or will be duly and validly authorized by
the Company and is, or with respect to this Agreement, the Equity Line of Credit
Agreement,  the Escrow Agreement, and the Registration Rights Agreement will be,
a valid and binding agreement of the Company, enforceable in accordance with its
respective  terms,  except to the extent that (a) the  enforceability  hereof or
thereof may be limited by bankruptcy, insolvency, reorganization,  moratorium or
similar laws from time to time in effect and  affecting  the rights of creditors
generally,  (b) the  enforceability  hereof or  thereof  is  subject  to general
principles of equity or (c) the indemnification provisions hereof or thereof may
be held to be in  violation  of  public  policy.  The  Securities  to be  issued
pursuant to the transactions  contemplated by this Agreement and the Equity Line
of Credit  Agreement have been duly  authorized and, when issued and paid for in
accordance  with  (x) this  Agreement,  the  Equity  Line of  Agreement  and the
certificates/instruments  representing  such  Securities,  (y) will be valid and
binding  obligations  of the  Company,  enforceable  in  accordance  with  their
respective terms,  except to the extent that (1) the enforceability  thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, and
(2) the  enforceability  thereof is subject to general principles of equity. All
corporate action required to be taken for the  authorization,  issuance and sale
of the Securities has been duly and validly taken by the Company.

                  (ii) The Company has a duly authorized, issued and outstanding
capitalization  as set forth herein and in the Equity Line of Credit  Agreement.
The  Company is not a party to or bound by any  instrument,  agreement  or other
arrangement  providing  for it to issue any  capital  stock,  rights,  warrants,
options or other securities, except for this Agreement, the agreements described
herein and as described in the Equity Line of Credit  Agreement,  dated the date
hereof  and  the  agreements  described  therein.  All  issued  and  outstanding
securities of the Company,  have been duly authorized and validly issued and are
fully paid and non-assessable;  the holders thereof have no rights of rescission
or  preemptive  rights  with  respect  thereto  and are not  subject to personal
liability  solely  by  reason  of  being  security  holders;  and  none  of such
securities  were issued in violation of the preemptive  rights of any holders of
any security of the Company. As of the date hereof, the authorized capital stock
of the Company  consists of 100,000,000  shares of Common Stock, par value $.001
per share of which 84,743,997 shares of Common Stock were issued and outstanding
as of the date thereof.

                  (iii) The Common  Stock to be issued in  accordance  with this
Agreement and the Equity Line of Credit  Agreement has been duly  authorized and
when issued and paid for in accordance with this  Agreement,  the Equity Line of
Credit  Agreement  and the  certificates/instruments  representing  such  Common
Stock,  will be validly  issued,  fully-paid  and  non-assessable;  the  holders
thereof will not be subject to personal liability solely by reason of being such
holders;  such  Securities  are not and will not be  subject  to the  preemptive
rights of any holder of any security of the Company.

                  (iv) The  Company has good and  marketable  title to, or valid
and enforceable  leasehold  estates in, all items of real and personal  property
necessary to conduct its business  (including,  without limitation,  any real or
personal property stated in the Offering  Materials to be owned or leased by the
Company), free and clear of all liens, encumbrances,  claims, security interests

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and defects of any material nature whatsoever, other than those set forth in the
Offering Materials and liens for taxes not yet due and payable.

                  (v) There is no litigation or governmental  proceeding pending
or, to the best of the Company's knowledge, threatened against, or involving the
properties  or  business  of the  Company,  except as set forth in the  Offering
Materials.

                  (vi)  The  Company  has been  duly  organized  and is  validly
existing  as a  corporation  in good  standing  under  the laws of the  State of
Delaware.  Except as set forth in the Offering  Materials,  the Company does not
own or control,  directly or indirectly,  an interest in any other  corporation,
partnership,  trust, joint venture or other business entity. The Company is duly
qualified  or licensed  and in good  standing as a foreign  corporation  in each
jurisdiction   in  which  the   character  of  its   operations   requires  such
qualification or licensing and where failure to so qualify would have a material
adverse effect on the Company. The Company has all requisite corporate power and
authority,  and all material and necessary  authorizations,  approvals,  orders,
licenses,  certificates  and  permits  of and from all  governmental  regulatory
officials  and bodies  (domestic  and  foreign) to conduct its  businesses  (and
proposed  business) as described in the Offering  Materials.  Any disclosures in
the Offering  Materials  concerning the effects of foreign,  federal,  state and
local  regulation  on the  Company's  businesses  as currently  conducted and as
contemplated  are correct in all  material  respects  and do not omit to state a
material fact.  The Company has all corporate  power and authority to enter into
this Agreement,  the Equity Line of Credit  Agreement,  the Registration  Rights
Agreement,  and the Escrow Agreement, to carry out the provisions and conditions
hereof and  thereof,  and all  consents,  authorizations,  approvals  and orders
required in connection  herewith and therewith have been  obtained.  No consent,
authorization or order of, and no filing with, any court,  government  agency or
other body is  required by the Company  for the  issuance of the  Securities  or
execution and delivery of the Offering  Materials except for applicable  federal
and state  securities laws. The Company,  since its inception,  has not incurred
any  liability  arising  under or as a result of the  application  of any of the
provisions of the 1933 Act, the 1934 Act or the Rules and Regulations.

                  (vii)  There  has  been  no  material  adverse  change  in the
condition or prospects of the Company,  financial or otherwise,  from the latest
dates as of which such  condition or prospects,  respectively,  are set forth in
the Offering Materials,  and the outstanding debt, the property and the business
of the Company  conform in all  material  respects to the  descriptions  thereof
contained in the Offering Materials.

                  (viii)  Except as set  forth in the  Offering  Materials,  the
Company is not in breach of, or in default  under,  any term or provision of any
material indenture, mortgage, deed of trust, lease, note, loan or Equity Line of
Credit  Agreement or any other  material  agreement or instrument  evidencing an
obligation for borrowed money, or any other material  agreement or instrument to
which  it is a party or by  which  it or any of its  properties  may be bound or
affected.  The Company is not in  violation  of any  provision of its charter or
by-laws or in violation of any franchise,  license, permit, judgment,  decree or
order, or in violation of any material statute, rule or regulation.  Neither the
execution  and delivery of the Offering  Materials  nor the issuance and sale or
delivery of the  Securities,  nor the  consummation  of any of the  transactions
contemplated  in the Offering  Materials nor the  compliance by the Company with
the terms and provisions hereof or thereof, has conflicted with or will conflict
with,  or has  resulted  in or will  result in a breach of, any of the terms and

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provisions  of, or has  constituted or will  constitute a default under,  or has
resulted in or will result in the creation or imposition of any lien,  charge or
encumbrance  upon any property or assets of the Company or pursuant to the terms
of any indenture,  mortgage, deed of trust, note, loan or any other agreement or
instrument  evidencing an obligation for borrowed  money, or any other agreement
or  instrument to which the Company may be bound or to which any of the property
or assets of the Company is subject except (a) where such default,  lien, charge
or encumbrance  would not have a material  adverse effect on the Company and (b)
as  described  in the  Offering  Materials;  nor will such action  result in any
violation  of the  provisions  of the  charter or the by-laws of the Company or,
assuming  the  due  performance  by  the  Placement  Agent  of  its  obligations
hereunder,  any  material  statute or any  material  order,  rule or  regulation
applicable  to the  Company of any court or of any  foreign,  federal,  state or
other regulatory authority or other government body having jurisdiction over the
Company.

                  (ix) Subsequent to the dates as of which  information is given
in  the  Offering  Materials,  and  except  as may  otherwise  be  indicated  or
contemplated  herein or  therein  and the  securities  offered  pursuant  to the
Securities  Purchase  Agreement  dated the date hereof,  the Company has not (a)
issued any  securities  or  incurred  any  liability  or  obligation,  direct or
contingent,  for borrowed money, or (b) entered into any transaction  other than
in the ordinary course of business, or (c) declared or paid any dividend or made
any  other  distribution  on or in  respect  of its  capital  stock.  Except  as
described in the Offering Materials,  the Company has no outstanding obligations
to any officer or director of the Company.

                  (x)  There  are no  claims  for  services  in the  nature of a
finder's or origination  fee with respect to the sale of the Common Stock or any
other  arrangements,  agreements or understandings that may affect the Placement
Agent's  compensation,  as determined by the National  Association of Securities
Dealers, Inc.

                  (xi) The  Company  owns or  possesses,  free and  clear of all
liens or  encumbrances  and rights  thereto or  therein  by third  parties,  the
requisite  licenses  or  other  rights  to use all  trademarks,  service  marks,
copyrights,  service  names,  trade  names,  patents,  patent  applications  and
licenses necessary to conduct its business (including,  without limitation,  any
such  licenses or rights  described in the Offering  Materials as being owned or
possessed by the Company)  and,  except as set forth in the Offering  Materials,
there is no claim or action by any person pertaining to, or proceeding,  pending
or threatened, which challenges the exclusive rights of the Company with respect
to any  trademarks,  service  marks,  copyrights,  service  names,  trade names,
patents,  patent  applications and licenses used in the conduct of the Company's
businesses (including, without limitation, any such licenses or rights described
in the Offering Materials as being owned or possessed by the Company) except any
claim or action that would not have a material  adverse  effect on the  Company;
the Company's  current  products,  services or processes do not infringe or will
not infringe on the patents currently held by any third party.

                  (xii)  Except as  described  in the  Offering  Materials,  the
Company  is not  under  any  obligation  to pay  royalties  or fees of any  kind
whatsoever  to any third party with respect to any  trademarks,  service  marks,
copyrights,  service names, trade names, patents, patent applications,  licenses
or technology it has developed, uses, employs or intends to use or employ, other
than to their respective licensors.

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                  (xiii) Subject to the  performance  by the Placement  Agent of
its obligations hereunder, the offer and sale of the Securities comply, and will
continue to comply in all material  respects,  with the requirements of Rule 506
of  Regulation D  promulgated  by the SEC pursuant to the 1933 Act and any other
applicable  federal and state laws,  rules,  regulations  and executive  orders.
Neither the Offering  Materials nor any amendment or supplement  thereto nor any
documents  prepared by the Company in connection  with the Offering will contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the  circumstances  under  which they were made,  not  misleading.  All
statements of material  facts in the Offering  Materials are true and correct as
of the date of the Offering Materials.
                  (xiv) All  material  taxes which are due and payable  from the
Company  have been  paid in full or  adequate  provision  has been made for such
taxes on the books of the Company  except for those taxes disputed in good faith
the Company does not have any tax  deficiency or claim  outstanding  assessed or
proposed against it.

                  (xv) None of the Company nor any of its  officers,  directors,
employees or agents, nor any other person acting on behalf of the Company,  has,
directly  or  indirectly,  given or agreed to give any  money,  gift or  similar
benefit (other than legal price  concessions to customers in the ordinary course
of  business)  to any  customer,  supplier,  employee  or agent of a customer or
supplier,  or official or employee of any governmental agency or instrumentality
of any government  (domestic or foreign) or any political party or candidate for
office  (domestic  or foreign) or other person who is or may be in a position to
help or hinder the business of the Company (or assist it in connection  with any
actual or  proposed  transaction)  which (A) might  subject  the  Company to any
damage  or  penalty  in  any  civil,  criminal  or  governmental  litigation  or
proceeding, or (B) if not given in the past, might have had a materially adverse
effect on the assets,  business or operations of the Company as reflected in any
of the financial statements  contained in the Offering Materials,  or (C) if not
continued in the future, might adversely affect the assets, business, operations
or prospects of the Company in the future.

         5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE INVESTOR.

         A. The Investor represents, warrants and covenants as follows:

                  (i) The  Investor has the  necessary  power to enter into this
Agreement and to consummate the transactions contemplated hereby .

                  (ii)  The  execution  and  delivery  by the  Investor  of this
Agreement and the consummation of the transactions  contemplated herein will not
result in any  violation  of, or be in conflict  with,  or  constitute a default
under,  any agreement or instrument to which the Investor is a party or by which
the Investor or its properties are bound, or any judgment,  decree, order or, to
the  Investor's  knowledge,  any statute,  rule or regulation  applicable to the
Investor.  This  Agreement  when executed and  delivered by the  Investor,  will
constitute the legal, valid and binding obligations of the Investor, enforceable
in accordance  with their  respective  terms,  except to the extent that (a) the
enforceability  hereof or  thereof  may be limited  by  bankruptcy,  insolvency,
reorganization,  moratorium  or  similar  laws from  time to time in effect  and
affecting the rights of creditors  generally,  (b) the enforceability  hereof or
thereof is subject to general  principles of equity, or (c) the  indemnification
provisions hereof or thereof may be held to be in violation of public policy.

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                  (iii) The Investor will promptly forward copies of any and all
due diligence questionnaires compiled by the Investor to the Placement Agent.

(iv) The Investor is an Accredited Investor (as defined under the 1933 Act).

(v) The Investor is acquiring the  Securities  for the Inventor's own account as
principal, not as a nominee or agent, for investment purposes only, and not with
a view to, or for, resale, distribution or fractionalization thereof in whole or
in part and no other person has a direct or indirect beneficial interest in such
Securities.  Further,  the  Investor  does not have any  contract,  undertaking,
agreement  or  arrangement  with  any  personal  to  sell,   transfer  or  grant
participations to such person or to any third person, with respect to any of the
Securities.

(vi) The Investor  acknowledges the Investor's  understanding  that the offering
and sale of the Securities is intended to be exempt from registration  under the
1933  Act by  virtue  of  Section  3(b) of the 1933  Act and the  provisions  of
Regulation D promulgated  thereunder  ("Regulation D"). In furtherance  thereof,
the Investor represents and warrants as follows:

                           (a) The  Investor  realizes  that the  basis  for the
          Regulation D exemption may not be present,  if,  notwithstanding  such
          representations,  the Investor has in mind merely acquiring Securities
          for a fixed or  determinable  period  in the  future,  or for a market
          rise,  or for sale if the market does not rise.  The Investor does not
          have any such intentions;

                           (b) The  Investor has the  financial  ability to bear
          the economic risk of the Investor's investment, has adequate means for
          providing for the Inventor's current needs and personal  contingencies
          and  has  no  need  for  liquidity  with  respect  to  the  Investor's
          investment in the Company; and

                           (c) The Investor has such knowledge and experience in
          financial  and  business  matters as to be capable of  evaluating  the
          merits and risks of the  prospective  investment.  The  Inventor  also
          represents it has not been  organized for the purpose of acquiring the
          Securities.

                  (vii)  The  Investor  has been  given  the  opportunity  for a
reasonable  time  prior to the date  hereof to ask  questions  of,  and  receive
answers  from,  the  Company  or its  representatives  concerning  the terms and
conditions of the Offering, and other matters pertaining to this investment, and
has been given the opportunity for a reasonable time prior to the date hereof to
obtain such  additional  information in connection with the Company in order for
the Investor to evaluate the merits and risks of purchase of the Securities,  to
the extent the  Company  possesses  such  information  or can acquire it without
unreasonable  effort or expense.  The  Investor is not relying on the  Placement
Agent or any of its affiliates  with respect to the accuracy or  completeness of
the  Offering  Materials  or for any  economic  considerations  involved in this
investment.

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         6. CERTAIN COVENANTS AND AGREEMENTS OF THE COMPANY.

         The Company covenants and agrees at its expense and without any expense
to the Placement Agent as follows:

         A. To advise  the  Placement  Agent and the  Investor  of any  material
adverse change in the Company's financial condition, prospects or business or of
any  development  materially  affecting  the  Company  or  rendering  untrue  or
misleading  any material  statement in the Offering  Materials  occurring at any
time as soon as the Company is either informed or becomes aware thereof.

         B. To use its commercially reasonable efforts to cause the Common Stock
issuable  in  connection  with the  Equity  Line of  Credit to be  qualified  or
registered for sale on terms  consistent  with those stated in the  Registration
Rights  Agreement and under the  securities  laws of such  jurisdictions  as the
Placement  Agent  and the  Investor  shall  reasonably  request.  Qualification,
registration  and  exemption  charges  and fees  shall  be at the sole  cost and
expense of the Company.

         C. Upon  written  request,  to provide  and  continue  to  provide  the
Placement  Agent and the Investor copies of all quarterly  financial  statements
and audited annual financial statements prepared by or on behalf of the Company,
other reports prepared by or on behalf of the Company for public  disclosure and
all documents delivered to the Company's stockholders.

         D. To deliver, during the registration period of the Equity Line Credit
Agreement,  to the Investor upon the Investor's request,  within forty five (45)
days, a statement of its income for each such quarterly period,  and its balance
sheet and a statement of changes in  stockholders'  equity as of the end of such
quarterly period, all in reasonable detail, certified by its principal financial
or  accounting  officer;  (ii)  within  ninety (90) days after the close of each
fiscal year,  its balance  sheet as of the close of such fiscal  year,  together
with a statement of income, a statement of changes in stockholders' equity and a
statement of cash flow for such fiscal year,  such balance  sheet,  statement of
income,  statement of changes in stockholders' equity and statement of cash flow
to be in  reasonable  detail and  accompanied  by a copy of the  certificate  or
report  thereon of  independent  auditors if audited  financial  statements  are
prepared;  and (iii) a copy of all documents,  reports and information furnished
to its stockholders at the time that such documents, reports and information are
furnished to its stockholders.

         E. To comply with the terms of the Offering Materials.

         F. To ensure that any transactions between or among the Company, or any
of its officers, directors and affiliates be on terms and conditions that are no
less  favorable  to the  Company,  than the terms and  conditions  that would be
available in an "arm's length" transaction with an independent third party.

         7. INDEMNIFICATION.

         A.  The  Company  hereby  agrees  that it will  indemnify  and hold the
Placement   Agent  and  each  officer,   director,   shareholder,   employee  or
representative of the Placement Agent and each person controlling, controlled by
or under common  control with the Placement  Agent within the meaning of Section
15 of the  1933  Act or  Section  20 of the  1934  Act or the  SEC's  Rules  and
Regulations promulgated there under (the "RULES AND REGULATIONS"), harmless from

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and  against  any  and all  loss,  claim,  damage,  liability,  cost or  expense
whatsoever (including, but not limited to, any and all reasonable legal fees and
other  expenses and  disbursements  incurred in connection  with  investigating,
preparing to defend or defending any action,  suit or proceeding,  including any
inquiry or investigation, commenced or threatened, or any claim whatsoever or in
appearing  or  preparing  for  appearance  as a witness in any  action,  suit or
proceeding,  including any inquiry, investigation or pretrial proceeding such as
a deposition)  to which the Placement  Agent or such  indemnified  person of the
Placement  Agent may become  subject under the 1933 Act, the 1934 Act, the Rules
and Regulations, or any other federal or state law or regulation,  common law or
otherwise,  arising  out of or based  upon (i) any untrue  statement  or alleged
untrue  statement  of a  material  fact  contained  in  (a)  Section  4 of  this
Agreement,  (b) the Offering Materials (except those written statements relating
to the Placement Agent given by the Placement Agent for inclusion therein),  (c)
any  application  or other  document  or written  communication  executed by the
Company or based upon written information  furnished by the Company filed in any
jurisdiction  in order to qualify  the Common  Stock under the  securities  laws
thereof,  or any state  securities  commission  or agency;  (ii) the omission or
alleged omission from documents  described in clauses (a), (b) or (c) above of a
material fact required to be stated  therein or necessary to make the statements
therein not  misleading;  or (iii) the breach of any  representation,  warranty,
covenant or agreement made by the Company in this Agreement. The Company further
agrees that upon demand by an  indemnified  person,  at any time or from time to
time, it will promptly  reimburse such indemnified  person for any loss,  claim,
damage,  liability,  cost  or  expense  actually  and  reasonably  paid  by  the
indemnified  person as to which the Company has indemnified such person pursuant
hereto.  Notwithstanding  the foregoing  provisions of this Paragraph  7(A), any
such payment or reimbursement by the Company of fees,  expenses or disbursements
incurred by an indemnified person in any proceeding in which a final judgment by
a court of competent  jurisdiction  (after all appeals or the expiration of time
to appeal) is entered  against the Placement  Agent or such  indemnified  person
based upon specific finding of fact that the Placement Agent or such indemnified
person's gross negligence or willful  misfeasance will be promptly repaid to the
Company.

         B. The Placement  Agent hereby  agrees that it will  indemnify and hold
the Company and each officer, director, shareholder,  employee or representative
of the  Company,  and each person  controlling,  controlled  by or under  common
control  with the  Company  within the  meaning of Section 15 of the 1933 Act or
Section  20 of the 1934 Act or the  Rules  and  Regulations,  harmless  from and
against any and all loss, claim, damage,  liability,  cost or expense whatsoever
(including,  but not  limited  to, any and all  reasonable  legal fees and other
expenses and disbursements incurred in connection with investigating,  preparing
to defend or defending any action, suit or proceeding,  including any inquiry or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or preparing  for  appearance  as a witness in any action,  suit or  proceeding,
including  any  inquiry,   investigation  or  pretrial   proceeding  such  as  a
deposition) to which the Company or such  indemnified  person of the Company may
become subject under the 1933 Act, the 1934 Act, the Rules and  Regulations,  or
any other federal or state law or regulation,  common law or otherwise,  arising
out of or based upon (i) the material  breach of any  representation,  warranty,
covenant or agreement  made by the Placement  Agent in this  Agreement  (ii) any
false or misleading information provided to the Company in writing by one of the
Placement Agent's indemnified persons specifically for inclusion in the Offering
Materials.

                                       9

<PAGE>

         C. The  Investor  hereby  agrees  that it will  indemnify  and hold the
Placement   Agent  and  each  officer,   director,   shareholder,   employee  or
representative of the Placement Agent, and each person  controlling,  controlled
by or under  common  control  with the  Placement  Agent  within the  meaning of
Section  15 of the 1933 Act or  Section  20 of the  1934  Act or the  Rules  and
Regulations,  harmless  from  and  against  any and  all  loss,  claim,  damage,
liability,  cost or expense whatsoever  (including,  but not limited to, any and
all  reasonable  legal fees and other  expenses  and  disbursements  incurred in
connection with investigating, preparing to defend or defending any action, suit
or proceeding, including any inquiry or investigation,  commenced or threatened,
or any claim whatsoever or in appearing or preparing for appearance as a witness
in any action,  suit or  proceeding,  including  any inquiry,  investigation  or
pretrial  proceeding  such as a deposition) to which the Placement Agent or such
indemnified person of the Placement Agent may become subject under the 1933 Act,
the 1934 Act, the Rules and  Regulations,  or any other  federal or state law or
regulation,  common  law or  otherwise,  arising  out of or  based  upon (i) the
conduct of the Investor or its  officers,  employees or  representatives  in its
acting as the  Investor  for the  Offering  or (ii) the  material  breach of any
representation,  warranty,  covenant or  agreement  made by the  Investor in the
Offering  Materials  (iii) any false or misleading  information  provided to the
Placement Agent by one of the Investor's indemnified persons.

         D. The Placement  Agent hereby  agrees that it will  indemnify and hold
the Investor and each officer, director, shareholder, employee or representative
of the  Investor,  and each person  controlling,  controlled  by or under common
control  with the  Investor  within the meaning of Section 15 of the 1933 Act or
Section  20 of the 1934 Act or the  Rules  and  Regulations,  harmless  from and
against any and all loss, claim, damage,  liability,  cost or expense whatsoever
(including,  but not  limited  to, any and all  reasonable  legal fees and other
expenses and disbursements incurred in connection with investigating,  preparing
to defend or defending any action, suit or proceeding,  including any inquiry or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or preparing  for  appearance  as a witness in any action,  suit or  proceeding,
including  any  inquiry,   investigation  or  pretrial   proceeding  such  as  a
deposition) to which the Investor or such indemnified person of the Investor may
become subject under the 1933 Act, the 1934 Act, the Rules and  Regulations,  or
any other federal or state law or regulation,  common law or otherwise,  arising
out of or based  upon  the  material  breach  of any  representation,  warranty,
covenant or agreement made by the Placement Agent in this Agreement.

         E.  Promptly  after  receipt  by an  indemnified  party  of  notice  of
commencement  of any action covered by Section 7(A),  (B), (C) or (D), the party
to be indemnified shall,  within five (5) business days, notify the indemnifying
party of the commencement  thereof; the omission by one (1) indemnified party to
so notify the indemnifying party shall not relieve the indemnifying party of its
obligation to indemnify any other  indemnified  party that has given such notice
and shall not relieve the  indemnifying  party of any liability  outside of this
indemnification  if not  materially  prejudiced  thereby.  In the event that any
action is brought against the indemnified  party, the indemnifying party will be

                                       10

<PAGE>

entitled to participate  therein and, to the extent it may desire, to assume and
control  the  defense  thereof  with  counsel  chosen by it which is  reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such  indemnified  party of its election to so assume the defense  thereof,  the
indemnifying  party  will not be liable to such  indemnified  party  under  such
Section  7(A),  (B),  (C), or (D) for any legal or other  expenses  subsequently
incurred by such indemnified  party in connection with the defense thereof,  but
the  indemnified  party may, at its own expense,  participate in such defense by
counsel  chosen by it,  without,  however,  impairing the  indemnifying  party's
control  of  the  defense.   Subject  to  the  proviso  of  this   sentence  and
notwithstanding  any other  statement  to the  contrary  contained  herein,  the
indemnified  party or  parties  shall  have the right to choose its or their own
counsel  and  control  the  defense  of any  action,  all at the  expense of the
indemnifying  party if,  (i) the  employment  of such  counsel  shall  have been
authorized in writing by the  indemnifying  party in connection with the defense
of  such  action  at  the  expense  of  the  indemnifying  party,  or  (ii)  the
indemnifying  party shall not have employed counsel  reasonably  satisfactory to
such  indemnified  party to have charge of the  defense of such action  within a
reasonable  time  after  notice of  commencement  of the  action,  or (iii) such
indemnified  party or parties shall have reasonably  concluded that there may be
defenses available to it or them which are different from or additional to those
available  to one  or  all  of the  indemnifying  parties  (in  which  case  the
indemnifying  parties  shall not have the right to direct  the  defense  of such
action on behalf of the  indemnified  party or parties),  in any of which events
such  fees  and  expenses  of one  additional  counsel  shall  be  borne  by the
indemnifying party; provided, however, that the indemnifying party shall not, in
connection with any one action or separate but substantially  similar or related
actions in the same jurisdiction  arising out of the same general allegations or
circumstance,  be liable for the  reasonable  fees and expenses of more than one
separate  firm of attorneys  at any time for all such  indemnified  parties.  No
settlement of any action or  proceeding  against an  indemnified  party shall be
made without the consent of the indemnifying party.

         F.  In  order  to  provide  for  just  and  equitable  contribution  in
circumstances in which the indemnification  provided for in Section 7(A) or 7(B)
is due in accordance  with its terms but is for any reason held by a court to be
unavailable  on grounds of policy or  otherwise,  the Company and the  Placement
Agent shall contribute to the aggregate losses,  claims, damages and liabilities
(including  legal or other expenses  reasonably  incurred in connection with the
investigation  or defense of same) which the other may incur in such  proportion
so that the  Placement  Agent  shall be  responsible  for  such  percent  of the
aggregate of such losses,  claims,  damages and  liabilities  as shall equal the
percentage of the gross  proceeds  paid to the  Placement  Agent and the Company
shall be responsible for the balance;  provided,  however, that no person guilty
of fraudulent  misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person who was not guilty of such
fraudulent  misrepresentation.  For  purposes of this Section  7(F),  any person
controlling,  controlled by or under common control with the Placement Agent, or
any partner,  director,  officer,  employee,  representative or any agent of any
thereof,  shall have the same rights to  contribution as the Placement Agent and
each person controlling,  controlled by or under common control with the Company
within  the  meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
and each officer of the Company and each  director of the Company shall have the
same rights to contribution  as the Company.  Any party entitled to contribution
will,  promptly after receipt of notice of commencement  of any action,  suit or
proceeding  against such party in respect of which a claim for  contribution may
be made against the other party under this Section 7(D),  notify such party from
whom contribution may be sought,  but the omission to so notify such party shall
not relieve the party from whom  contribution  may be sought from any obligation
they may have hereunder or otherwise if the party from whom  contribution may be
sought is not  materially  prejudiced  thereby.  The indemnity and  contribution
agreements  contained in this Section 7 shall remain operative and in full force
and  effect  regardless  of  any  investigation  made  by or on  behalf  of  any
indemnified person or any termination of this Agreement.

                                       11

<PAGE>

         8. PAYMENT OF EXPENSES.

         The Company  hereby  agrees to bear all of the  expenses in  connection
with the Offering,  including,  but not limited to the  following:  filing fees,
printing and duplicating  costs,  advertisements,  postage and mailing  expenses
with respect to the transmission of Offering  Materials,  registrar and transfer
agent fees,  escrow agent fees and expenses,  fees of the Company's  counsel and
accountants, issue and transfer taxes, if any.

         9. CONDITIONS OF CLOSING.

         The  Closing  shall  be  held at the  offices  of the  Investor  or its
counsel.  The  obligations of the Placement  Agent hereunder shall be subject to
the continuing accuracy of the representations and warranties of the Company and
the  Investor  herein as of the date  hereof and as of the Date of Closing  (the
"CLOSING DATE") with respect to the Company or the Investor, as the case may be,
as if it had been made on and as of such Closing Date; the accuracy on and as of
the Closing Date of the  statements of the officers of the Company made pursuant
to the provisions hereof; and the performance by the Company and the Investor on
and as of the Closing Date of its covenants and obligations hereunder and to the
following further conditions:

         A. Upon the  effectiveness  of a  registration  statement  covering the
Equity Line of Credit  Agreement,  the  Investor and the  Placement  Agent shall
receive the  opinion of Counsel to the  Company,  dated as of the date  thereof,
which  opinion  shall be in form and substance  reasonably  satisfactory  to the
Investor, their counsel and the Placement Agent.

         B. At or prior to the Closing,  the Investor  and the  Placement  Agent
shall have been furnished such  documents,  certificates  and opinions as it may
reasonably  require for the purpose of enabling  them to review or pass upon the
matters referred to in this Agreement and the Offering Materials, or in order to
evidence   the   accuracy,   completeness   or   satisfaction   of  any  of  the
representations, warranties or conditions herein contained.

         C. At and prior to the  Closing,  (i) there shall have been no material
adverse change nor development  involving a prospective  change in the condition
or prospects or the business activities,  financial or otherwise, of the Company
from the latest  dates as of which such  condition  is set forth in the Offering
Materials; (ii) there shall have been no transaction, not in the ordinary course
of  business  except  the  transactions  pursuant  to  the  Securities  Purchase
Agreement  entered  into by the  Company  which  has not been  disclosed  in the
Offering  Materials or to the  Placement  Agent in writing;  (iii) except as set
forth in the Offering  Materials,  the Company shall not be in default under any
provision of any instrument relating to any outstanding indebtedness for which a
waiver or extension has not been otherwise received; (iv) except as set forth in
the Offering Materials,  the Company shall not have issued any securities (other
than those to be issued as provided in the  Offering  Materials)  or declared or
paid any dividend or made any distribution of its capital stock of any class and
there shall not have been any change in the indebtedness (long or short term) or
liabilities or  obligations  of the Company  (contingent or otherwise) and trade

                                       12

<PAGE>

payable  debt;  (v) no material  amount of the assets of the Company  shall have
been pledged or mortgaged,  except as indicated in the Offering  Materials;  and
(v) no action, suit or proceeding,  at law or in equity,  against the Company or
affecting any of its  properties  or  businesses  shall be pending or threatened
before  or by  any  court  or  federal  or  state  commission,  board  or  other
administrative  agency,  domestic or foreign,  wherein an unfavorable  decision,
ruling or finding could materially adversely affect the businesses, prospects or
financial  condition  or  income  of the  Company,  except  as set  forth in the
Offering Materials.

         D. At Closing,  the Investor and the  Placement  Agent shall  receive a
certificate  of the Company signed by an executive  officer and chief  financial
officer,  dated as of the applicable  Closing, to the effect that the conditions
set forth in  subparagraph  (C) above have been  satisfied  and that,  as of the
applicable closing,  the representations and warranties of the Company set forth
herein are true and correct.

         E. The Placement  Agent shall have no obligation to insure that (x) any
check,  note,  draft or other  means of  payment  for the  Common  Stock will be
honored,  paid or enforceable against the Investor in accordance with its terms,
or (y) subject to the performance of the Placement  Agent's  obligations and the
accuracy of the Placement Agent's representations and warranties hereunder,  (1)
the Offering is exempt from the registration requirements of the 1933 Act or any
applicable   state  "Blue  Sky"  law  or  (2)  the  Investor  is  an  Accredited
Investor.10. TERMINATION.

         This Agreement  shall be co-terminus  with, and terminate upon the same
terms and conditions as those set forth in, the Equity Line of Credit Agreement.
The  rights  of the  Investor  and the  obligations  of the  Company  under  the
Registration  Rights  Agreement,  and the rights of the Placement  Agent and the
obligations  of the Company  shall  survive the  termination  of this  Agreement
unabridged.

         11. MISCELLANEOUS.

         A. This Agreement may be executed in any number of  counterparts,  each
of which shall be deemed to be an original,  but all which shall be deemed to be
one and the same instrument.

         B. Any notice  required or  permitted  to be given  hereunder  shall be
given in writing  and shall be deemed  effective  when  deposited  in the United
States mail, postage prepaid, or when received if personally  delivered or faxed
(upon  confirmation  of receipt  received by the sending  party),  addressed  as
follows:

If to Placement Agent, to:           Katalyst Securities LLC
                                     405 Lexington Avenue - 48th Floor
                                     New York, New York, 10174
                                     Attention: John Fitzgerald
                                     Telephone: (484) 530-1750
                                     Facsimile:  (347) 402-7943

                                       13

<PAGE>

If to the Company, to:               Pick Ups Plus Inc.
                                     4360 Ferguson Drive - Suite 120
                                     Cincinnati, Ohio 45245
                                     Attention:        Robert White
                                     Telephone:        (513) 398-4344
                                     Facsimile:        (513) 398-9802

                                     Sichenzia Ross Friedman Ference LLP
With a copy to:                      1065 Avenue of the Americas - 21st Floor
                                     New York, New York 10018
                                     Attention:    Gregory Sichenzia, Esq.
                                     Telephone:  (212) 930-9700
                                     Facsimile:   (212) 930-9725
                                     Pick Ups Plus Inc.

If to the Investor:                  Cornell Capital Partners, LP
                                     101 Hudson Street - Suite 3606
                                     Jersey City, New Jersey  07302
                                     Attention:        Mark A. Angelo
                                                       Portfolio Manager
                                     Telephone:        (201) 985-8300
                                     Facsimile:        (201) 985-8266

With Copies to:                      Butler Gonzalez LLP
                                     1000 Stuyvesant Avenue - Suite No. 6
                                     Union, New Jersey  07083
                                     Attention:        David Gonzalez, Esq.
                                     Telephone:        (908) 810-8588
                                     Facsimile:        (908) 810-0973

or to such other address of which written notice is given to the others.

         C. This  Agreement  shall be governed by and  construed in all respects
under the laws of the State of  Delaware,  without  reference to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted in such federal
or state  court or courts  located  within the State of New York as  provided by
law.  The  parties  hereby  irrevocably  and  unconditionally   consent  to  the
jurisdiction  of each such court or courts  located within the State of New York
and to service of  process by  registered  or  certified  mail,  return  receipt
requested,  or by any other  manner  provided  by  applicable  law,  and  hereby
irrevocably and unconditionally  waive any right to claim that any suit, action,
proceeding  or litigation  so commenced  has been  commenced in an  inconvenient
forum.

         D. This Agreement and the other  agreements  referenced  herein contain
the entire  understanding  between the parties hereto and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

                                       14

<PAGE>

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15

<PAGE>

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

                                            COMPANY:
                                            PICK-UPS PLUS INC.

                                            By:
                                              ---------------------------------
                                            Name: Robert White
                                            Title: Chief Financial Officer

                                            PLACEMENT AGENT:
                                            KATALYST SECURITIES LLC

                                            By:
                                              ---------------------------------
                                            Name: John Fitzgerald
                                            Title: President

                                            INVESTOR:
                                            CORNELL CAPITAL PARTNERS, LP

                                            By: Yorkville Advisors, LLC
                                            Its: General Partner

                                            By:
                                              ---------------------------------
                                            Name: Mark A. Angelo
                                            Title: Portfolio Manager

                                       16

<PAGE><PAGE>

                                   EXHIBIT 4.1

                                 FERRIS WARRANT

                                       9
<PAGE>

                                     WARRANT

                         THE TRANSFER OF THIS WARRANT IS
                         RESTRICTED AS DESCRIBED HEREIN.

                             WARRANTECH CORPORATION

                    Warrant for the purchase of a maximum of
                         40,000 shares of Common Stock,
                           $0.007 par value per share

                                                     A Maximum of 40,000 Shares

         THIS CERTIFIES that, for value received,  STEVEN FERRIS with an address
at 2040 128th Avenue,  SE Bellevue,  Washington  98005  (including any permitted
transferee,  the  "Holder"),  is entitled to  subscribe  for and  purchase  from
Warrantech Corporation,  a Delaware corporation (the "Company"),  upon the terms
and conditions set forth herein,  at any time from the first Vesting Date to the
date (3) years after the last Vesting Date (the "Exercise Period"), up to 40,000
shares (the "Shares") of the Company's common stock,  $0.007 par value per share
(the  "Common  Stock").  The price (the  "Exercise  Price") for each Share as to
which  the  right  to  purchase  vests on a  particular  Vesting  Date  shall be
determined as follows.  The Exercise Price for each such Share shall be equal to
the Average Daily Fair Market Value of the Shares  during the Quarter  ending on
the applicable Vesting Date.

         This Warrant is issued to the Holder in connection  with the Consulting
Agreement  dated January 1, 2002  ("Consulting  Agreement"),  by and between the
Company and the Holder.  So long as a  Termination  Date shall not have occurred
prior to a  particular  Vesting  Date,  there  shall vest the right to  purchase
10,000 shares on each Vesting  Date. If a Termination  Date shall occur prior to
the first  Vesting  Date,  there shall not vest the right to purchase any Shares
and this Warrant shall terminate and be of no further force and effect.

         If a Termination  Date shall occur after the first Vesting Date,  there
shall vest for the Quarter in which such  Termination Date shall occur the right
to purchase an  additional  number of shares equal to 111.11  multiplied  by the
number of full days which have  elapsed in such  Quarter  since the last Vesting
Date.  Notwithstanding any other provision of this Warrant,  the Holder shall be
entitled to purchase only up to the Vested Shares Rights at any point in time.

         1.       DEFINITIONS

                  "ACT" shall have the meaning as set forth in Section 4.

                  "ADJUSTMENT  THRESHOLD  AMOUNT"  shall have the meaning as set
forth in Section 7(d).

                                       10
<PAGE>

                  "AVERAGE  DAILY FAIR MARKET  VALUE" shall mean the mean of the
Fair  Market  Value for each day during a Quarter  which shall not be a day upon
which the New York Stock Exchange shall not be open for trading.

                  "COMMON  STOCK"  shall  have the  meaning  as set forth in the
preamble.

                  "COMPANY" shall have the meaning as set forth in the preamble.

                  "CONSULTING  AGREEMENT" shall have the meaning as set forth in
the preamble.

                  "EXERCISE  PRICE"  shall have the  meaning as set forth in the
preamble.

                  "FAIR  MARKET  VALUE" shall mean the market price of shares of
Common Stock, determined by the board of directors as follows:

         (a)      If the shares of Common Stock were traded  over-the-counter on
                  the date in  question  but were not  classified  as a national
                  market issue, then the Fair Market Value shall be equal to the
                  last-transaction price quoted for such date;
         (b)      If the shares of Common Stock were traded  over-the-counter on
                  the date in question but were  classified as a national market
                  issue,  then  the  Fair  Market  Value  shall  be equal to the
                  last-transaction  price  quoted by the NASDAQ  system for such
                  date;
         (c)      If the shares of Common Stock were traded on a stock  exchange
                  on the date in  question,  then the Fair Market Value shall be
                  equal  to  the  closing  price   reported  by  the  applicable
                  composite transactions report for such date; and
         (d)      If none of the foregoing  provisions is  applicable,  then the
                  Fair  Market  Value  shall  be  determined  by  the  board  of
                  directors  of the  Company  in good  faith on such basis as it
                  deems appropriate.
         (e)      When possible,  the  determination of Fair Market Value by the
                  board of directors of the Company shall be based on the prices
                  reported in The Wall Street Journal.  The determination on the
                  Board of  Directors  of the Company  shall be  conclusive  and
                  binding on all persons.

                  "FIRST  QUARTER"  shall mean the date of this Warrant  through
and including March 31, 2001.

                  "EXERCISE  PERIOD"  shall have the meaning as set forth in the
preamble.

                  "EXERCISE  PRICE"  shall have the  meaning as set forth in the
preamble.

                  "HOLDER" shall have the meaning as set forth in the preamble.

                  "LAST   QUARTER"  shall  mean  October  1,  2002  through  and
including December 31, 2002.

                  "QUARTER"  shall  mean each of the First  Quarter,  the Second
Quarter, the Third quarter and the Last Quarter.

                                       11
<PAGE>

                  "SECOND   QUARTER"  shall  mean  April  1,  2002  through  and
including June 30, 2002.

                  "SHARE" shall have the meaning as set forth in the preamble.

                  "TERMINATION   DATE"  shall  mean  the  date  the   Consulting
Agreement shall terminate for any reason.

                  "THIRD  QUARTER" shall mean July 1, 2002 through and including
September 30, 2002.

                  "VESTED SHARE RIGHTS" shall mean all rights to purchase shares
which  shall  have  vested  at any point in time  pursuant  to the terms of this
Warrant.

                  "VESTING DATE" shall mean the last day of any Quarter.

         2.       EXERCISE PERIOD AND EXERCISE PRICE

         This Warrant may be exercised  during the  Exercise  Period,  as to the
whole or any lesser number of Shares (subject to the limitation set forth in the
preamble to this Warrant with respect to Vested Share Rights),  by the surrender
of this  Warrant  (with the  election  at the end hereof duly  executed)  to the
Company at its office at One Canterbury Green, 8th Floor, Stamford, CT 06901, or
at such other place as is  designated  in writing by the Company,  together with
cash or a certified or bank cashier's  check payable to the order of the Company
in an amount equal to the Exercise Price  multiplied by the number of Shares for
which this  Warrant is being  exercised.  If this Warrant is  exercised,  at any
time, for less than all of the Shares, the exercise shall be deemed to relate to
the Vested Share Rights in the same order in which they have vested.

         3.       PURCHASE OF SHARES

         Upon each  exercise  of the  Holder's  rights to purchase  Shares,  the
Holder  shall be deemed to be the holder of record of the Shares  issuable  upon
such exercise, notwithstanding that the transfer books of the Company shall then
be closed or  certificates  representing  such  Shares  shall not then have been
actually  delivered  to the  Holder.  As soon as  practicable  after  each  such
exercise of this  Warrant,  the Company  shall issue and deliver to the Holder a
certificate  or  certificates  for  the  Shares  issuable  upon  such  exercise,
registered in the name of the Holder or its designee.  If this Warrant should be
exercised in part only,  the Company  shall,  upon surrender of this Warrant for
cancellation,  execute  and deliver a new  Warrant  evidencing  the right of the
Holder to purchase  the balance of the Shares (or portions  thereof)  subject to
purchase hereunder.

                                       12
<PAGE>

         4.       EXERCISE PROCEDURE

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

         5.       REGISTRATION RIGHTS

         The Company shall file a Registration  Statement covering the Shares on
Form S-8, or other  comparable form then in effect,  on or before the end of the
First Quarter.

         6.       RESERVATION OF COMMON STOCK

         The Company shall at all times reserve and keep  available,  solely for
the purpose of  providing  for the exercise of the rights to purchase all Shares
granted  pursuant to this  Warrant,  such  number of shares of Common  Stock and
other stock,  securities and property as from time to time are  receivable  upon
exercise of this Warrant.  The Company covenants that all shares of Common Stock
issuable upon exercise of this Warrant,  upon receipt by the Company of the full
Exercise Price therefor, shall be validly issued, fully paid, nonassessable, and
free of preemptive rights.

                                       13
<PAGE>

         7.       NOTICE OF ADJUSTMENTS

         The Exercise  Price and the number of Shares of Common Stock subject to
this Warrant shall be subject to adjustment from time to time as follows:

                  (A)      SUBDIVISION OR COMBINATION OF STOCK

                           (1) If at any time or from time to time following the
date of issuance of this Warrant the Company  shall  subdivide  its  outstanding
shares  of  Common  Stock,  the  Exercise  Price  for  this  Warrant  in  effect
immediately  prior to such subdivision  shall be  proportionately  reduced,  and
conversely,  in case the outstanding shares of Common Stock of the Company shall
be  combined  into a smaller  number of  shares,  the  Exercise  Price in effect
immediately prior to such combination shall be proportionately increased.

                           (2) Upon each  adjustment  of the  Exercise  Price as
provided in (a)(i) above,  the Holder shall  thereafter be entitled to purchase,
at the  Exercise  Price  resulting  from such  adjustment,  the number of Shares
(calculated to the nearest whole share of Common Stock)  obtained by multiplying
the Exercise Price in effect  immediately prior to such adjustment by the number
of Shares  purchasable  pursuant hereto immediately prior to such adjustment and
dividing  the  product  thereof  by  the  Exercise  Price  resulting  from  such
adjustment.

                  (B)  ADJUSTMENT  FOR STOCK  DIVIDENDS.  If and whenever at any
time the Company  shall declare a dividend or make any other  distribution  upon
any class or series of stock of the Company payable in shares of Common Stock or
securities  convertible  into shares of Common Stock, the Exercise Price and the
number  of  Shares  to be  obtained  upon  exercise  of this  Warrant  shall  be
proportionately  adjusted to reflect the  issuance of any shares of Common Stock
or  convertible  securities,  as the case may be,  issuable  in  payment of such
dividend or distribution.

                  (C) REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR
SALE. If any capital  reorganization of the capital stock of the Company, or any
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
in such a way that holders of Common  Stock shall be entitled to receive  stock,
securities,  or  other  assets  or  property,  then,  as  a  condition  of  such
reorganization,  reclassification,  consolidation,  merger or sale,  lawful  and
adequate  provisions  shall be made whereby the Holder  hereof shall  thereafter
have the right to purchase  and  receive (in lieu of the Shares of Common  Stock
immediately  theretofore  purchasable) such shares of stock, securities or other
assets or  property as may be issued or payable  with  respect to or in exchange
for a number of outstanding shares of Common Stock equal to the number of Shares
of such  stock  immediately  theretofore  purchasable  and  receivable  upon the
exercise  of the rights  represented  hereby.  In any  reorganization  described
above,  appropriate  provision  shall be made with  respect  to the  rights  and
interests  of the Holder of this Warrant to the end that the  provisions  hereof
(including, without limitation, provisions for adjustments of the Exercise Price
and of the number of Shares purchasable and receivable upon the exercise of this
Warrant) shall thereafter be applicable, as nearly as may be, in relation to any
shares of stock,  securities or assets thereafter  deliverable upon the exercise
hereof.  The  Company  will not  effect any such  consolidation,  merger or sale
unless, prior to the consummation  thereof, the successor  corporation (if other

                                       14
<PAGE>

than  the  Company)   resulting  from  such  consolidation  or  the  corporation
purchasing such assets shall assume by written  instrument,  executed and mailed
or delivered to the registered  Holder hereof at the last address of such Holder
appearing on the books of the Company,  the obligation to deliver to such Holder
such shares of stock,  securities or assets as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase.

                  (D) MINIMAL  ADJUSTMENTS.  No adjustment in the Exercise Price
and/or  the  number  of  Shares  subject  to this  Warrant  need be made if such
adjustment  would  result  in a change in the  Exercise  Price of less than five
cents ($0.05) (the  "Adjustment  Threshold  Amount").  Any adjustment  less than
these  amounts  which is not made  shall be  carried  forward  and shall be made
together  with any  subsequent  adjustments,  at the time when (i) the aggregate
amount of all such  adjustments  is equal to at least the  Adjustment  Threshold
Amount or (ii) this Warrant is exercised.

                  (E)  CERTIFICATE OF  ADJUSTMENTS.  Upon the occurrence of each
adjustment or readjustment of the Exercise Price pursuant to this Section 7, the
Company, at its expense,  shall promptly compute such adjustment or readjustment
in  accordance  with the terms  hereof and  prepare  and furnish to the Holder a
certificate  setting forth such adjustment or readjustment and showing in detail
the facts upon which such  adjustment  or  readjustment  is based.  The  Company
shall,  upon written  request at any time of the Holder,  furnish or cause to be
furnished to the Holder a like  certificate  setting forth (i) such  adjustments
and  readjustments,  (ii) the then effective Exercise Price and number of Shares
subject  to this  Warrant,  and (iii) the then  effective  amount of  securities
(other than the shares of Common Stock) and other property,  if any, which would
be received upon exercise of this Warrant.

         8.       EXPENSES

         The issuance of any Shares upon the exercise of this  Warrant,  and the
delivery of certificates or other instruments representing such Shares, shall be
made without charge to the Holder for any tax or other charge in respect of such
issuance.  The Company shall not, however, be required to pay income tax imposed
upon the  Holder or any tax which may be  payable  in  respect  of any  transfer
involved in the issue and delivery of any  certificate in a name other than that
of the Holder and the Company shall not be required to issue or deliver any such
certificate  unless and until the person or persons requesting the issue thereof
shall have paid to the Company the amount of such tax or shall have  established
to the satisfaction of the Company that such tax has been paid.

         9.       LOSS OF WARRANT

         Upon  receipt  of  evidence  satisfactory  to the  Company of the loss,
theft,  destruction,  or mutilation  of this Warrant (and upon  surrender of any
Warrant if  mutilated),  including  an affidavit of the Holder that this Warrant
has been lost,  stolen,  destroyed  or  mutilated,  together  with an  indemnity
against any claim that may be made  against the Company on account of such lost,
stolen,  destroyed or mutilated Warrant, and upon reimbursement of the Company's
reasonable  incidental  expenses,  the Company  shall execute and deliver to the
Holder a new Warrant of like date, tenor, and denomination.

                                       15
<PAGE>

         10.      NO STOCKHOLDER RIGHTS

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

         11.      GOVERNING LAW

         This  Warrant  shall be construed  in  accordance  with the laws of the
State of Delaware  applicable to contracts made and performed within such State,
without giving effect to conflicts of law principles.

         12.      NOTICES

         Any notice or other  communication  required or  permitted  to be given
hereunder  shall be in writing  and shall be mailed by  certified  mail,  return
receipt  requested,  or by Federal  Express,  Express Mail or similar  overnight
delivery or courier  service or delivered  (in person or by  telecopy,  telex or
similar telecommunications equipment) against receipt to the party to whom it is
to be given, (i) if to the Company,  at its address at One Canterbury Green, 8th
Floor, Stamford, CT 06901, Attention: James F. Morganteen,  Esq.; (ii) if to the
Holder,  at its address set forth on the first page  hereof,  or (iii) in either
case,  to such other  address as the party  shall have  furnished  in writing in
accordance  with the  provisions of this Section 12. Notice to the estate of any
party shall be  sufficient if addressed to the party as provided in this Section
12. Any notice or other  communication  given by certified  mail shall be deemed
given at the time of  certification  thereof,  except  for a notice  changing  a
party's address which shall be deemed given at the time of receipt thereof.  Any
notice  given by other means  permitted by this Section 12 shall be deemed given
at the time of receipt thereof.

         13.      WAIVER

         No course of dealing and no delay or omission on the part of the Holder
in exercising any right or remedy shall operate as a waiver thereof or otherwise
prejudice the Holder's  rights,  powers or remedies.  No right,  power or remedy
conferred by this Warrant upon the Holder shall be exclusive of any other right,
power or remedy  referred  to herein or now or  hereafter  available  at law, in
equity,  by statute or otherwise,  and all such remedies may be exercised singly
or concurrently.

                                       16
<PAGE>

         14.      AMENDMENT

         This  Warrant may be amended only by a written  instrument  executed by
the Company and the Holder  hereof.  Any  amendment  shall be endorsed upon this
Warrant, and all future Holders shall be bound thereby.

         15.      CAPTIONS

         Paragraph  captions  contained in this  Warrant are inserted  only as a
matter of convenience and for reference and in no way define, limit or extend or
describe the scope of this Warrant or the intent of any provision hereof.

Dated:  January 1, 2002
                                    WARRANTECH CORPORATION

                                    By: /s/ Richard F. Gavino
                                      -------------------------------------
                                        Name:  Richard F. Gavino
                                        Title:  Executive Vice President/
                                                Chief Financial Officer

[Seal]

/s/ James F. Morganteen
---------------------------------
James F. Morganteen, Secretary

                                       17
<PAGE>

                               FORM OF ASSIGNMENT

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

                  FOR  VALUE  RECEIVED,   ______________________  hereby  sells,
assigns, and transfers unto  ________________ a Warrant to purchase up to 40,000
Shares of  Warrantech  Corporation  (the  "Company"),  together  with all right,
title, and interest therein, and does hereby irrevocably  constitute and appoint
_________  ___________________ attorney to transfer such Warrant on the books of
the Company, with full power of substitution.

Dated:__________________
                                    Signature
                                             ----------------------------------

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

                                    Signature Guarantee

                                     NOTICE

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

To:      Warrantech Corporation
         One Canterbury Green
         8th Floor
         Stamford, CT  06901
         Attention: James F. Morganteen, Esq.

                                       18
<PAGE>

                              ELECTION TO EXERCISE

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

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

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

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

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

Dated:__________________
                                        ------------------------------------
                                        (Signature)

                                        ------------------------------------
                                        (Signature Guarantee)

                                        ------------------------------------
                                        (Signature Guarantee)

                                       19
<PAGE>

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