Document:

MERITAGE CORPORATION
                              STOCK OPTION PLAN (1)

1.   ESTABLISHMENT, PURPOSE AND DEFINITIONS.

     a.   The Stock  Option  Plan (the  "Option  Plan") of  Meritage  Homes (the
          "Company")  is hereby  adopted.  The Option Plan shall provide for the
          issuance of incentive stock options  ("ISOs") and  nonqualified  stock
          options ("NSOs").

     b.   The purpose of this Option Plan is to promote the long-term success of
          the Company by attracting,  motivating  and retaining key  executives,
          consultants  and  directors  (the  "Participants")  through the use of
          competitive   long-term  incentives  which  are  tied  to  stockholder
          interests by providing  incentives to the  Participants in the form of
          stock   options  which  offer  rewards  for  achieving  the  long-term
          strategic and financial objectives of the Company.

     c.   The Option Plan is intended  to provide a means  whereby  Participants
          may be given an  opportunity  to purchase  shares of Stock (as defined
          herein) of the Company  pursuant  to (i) options  which may qualify as
          ISOs  under  Section  422 of the  Internal  Revenue  Code of 1986,  as
          amended (the "Internal  Revenue Code"),  or (ii) NSOs which may not so
          qualify.

     d.   The term  "Affiliates"  as used in this  Option  Plan means  parent or
          subsidiary  corporations,  as defined in Section 424(e) and (f) of the
          Code (but  substituting  "the  Company" for  "employer  corporation"),
          including parents or subsidiaries  which become such after adoption of
          the Option Plan.

2.   ADMINISTRATION OF THE PLAN

     a.   The  Option  Plan  shall be  administered  by  members of the Board of
          Directors of the Company (the  "Board")  qualifying  as  "non-employee
          directors"  as such term is defined in Rule 16b-3  promulgated  by the
          Securities and Exchange Commission (the "Commission").

     b.   The Board  may from  time to time  determine  which  employees  of the
          Company or its  Affiliates or other  individuals  or entities (each an
          "option  holder") shall be granted  options under the Option Plan, the
          terms thereof (including without  limitation  determining  whether the
          option is an incentive stock option and the times at which the options
          shall become exercisable), and the number of shares of Stock for which
          an option or options may be granted.

     c.   If rights of the Company to  repurchase  Stock are imposed,  the Board
          may, in its sole discretion, accelerate, in whole or in part, the time
          for lapsing of any rights of the Company to repurchase  shares of such
          Stock or forfeiture restrictions.

     d.   If  rights  of the  Company  to  repurchase  Stock  are  imposed,  the
          certificates  evidencing  such  shares  of  Stock  awarded  hereunder,
          although issued in the name of the option holder  concerned,  shall be
          held by the Company or a third party designated by the Board in escrow
          subject to  delivery  to the option  holder or to the  Company at such
          times and in such  amounts as shall be directed by the Board under the
          terms of this Option Plan. Share certificates  representing Stock that
          is subject to repurchase  rights shall have imprinted or typed thereon
          a legend or legends summarizing or referring to the repurchase rights.

     e.   The Board shall have the sole authority,  in its absolute  discretion,
          to adopt,  amend and rescind  such rules and  regulations,  consistent
          with the  provisions  of the Option Plan,  as, in its opinion,  may be
          advisable in the  administration  of the Option Plan,  to construe and
          interpret  the  Option  Plan,  the  rules  and  regulations,  and  the
          instruments  evidencing  options  granted under the Option Plan and to
          make all other  determinations  deemed  necessary or advisable for the
          administration of the Option Plan. All decisions,  determinations  and
          interpretations  of the Board  shall be binding on all option  holders
          under the Option Plan.

----------
(1) Reflects amendments approved at the May 10, 2000 annual meeting.
<PAGE>
3.   STOCK SUBJECT TO THE PLAN

     a.   "Stock" shall mean Common Stock of the Company or such stock as may be
          changed as  contemplated  by Section 3(c) below.  Stock shall  include
          shares drawn from either the Company's  authorized but unissued shares
          of Common Stock or from reacquired  shares of Common Stock,  including
          without  limitation  shares  repurchased  by the  Company  in the open
          market.  The  maximum  number of shares  of Common  Stock  that can be
          issued  under this  Option  Plan is 775,000  shares,  and the  maximum
          number of shares of Common  Stock that can be issued to any one person
          under this Option Plan is 100,000 shares.

     b.   Options  may be  granted  under the  Option  Plan from time to time to
          eligible  persons.  Stock options awarded  pursuant to the Option Plan
          which are  forfeited,  terminated,  surrendered  or  canceled  for any
          reason prior to exercise shall again become available for grants under
          the Option Plan  (including any option canceled in accordance with the
          cancellation regrant provisions of Section 6(f) herein).

     c.   If there shall be any changes in the Stock subject to the Option Plan,
          including  Stock  subject to any  option  granted  hereunder,  through
          merger,     consolidation,      recapitalization,      reorganization,
          reincorporation,  stock split,  reverse stock split,  stock  dividend,
          combination  or  reclassification  of the  Company's  Stock  or  other
          similar events,  an appropriate  adjustment shall be made by the Board
          in the number of shares of Stock.  Consistent  with the foregoing,  in
          the event that the outstanding  Stock is changed into another class or
          series  of  capital  stock  of the  Company,  outstanding  options  to
          purchase  Stock granted under the Option Plan shall become  options to
          purchase such other class or series and the provisions of this Section
          3(c) shall apply to such new class or series.

     d.   The  aggregate  number of shares of Stock  approved by the Option Plan
          may not be exceeded  without  amending  the Option Plan and  obtaining
          stockholder approval within twelve months of such amendment.

4.   ELIGIBILITY

     Persons who shall be eligible to receive  stock  options  granted under the
     Option  Plan shall be those  individuals  and  entities as the Board in its
     discretion  determines  should be awarded  such  incentives  given the best
     interests  of the  Company;  provided,  however,  that (i) ISOs may only be
     granted to employees of the Company and its  Affiliates and (ii) any person
     holding capital stock possessing more than 10% of the total combined voting
     power of all classes of Stock of the Company or any Affiliate  shall not be
     eligible to receive ISOs unless the exercise price per share of Stock is at
     least 110% of the fair market  value of the Stock on the date the option is
     granted.

5.   EXERCISE PRICE FOR OPTIONS GRANTED UNDER THE PLAN

     a.   All ISOs and the majority of NSOs will have option exercise prices per
          option  share  not less than the fair  market  value of a share of the
          Stock on the date the option is  granted,  except  that in the case of
          ISOs  granted  to any  person  possessing  more  than 10% of the total
          combined  voting  power of all  classes of stock of the Company or any
          Affiliate  the price  shall be not less than 110% of such fair  market
          value.  The price of ISOs or NSOs granted  under the Option Plan shall
          be subject to adjustment to the extent provided in Section 3(c) above.

     b.   The fair market value on the date of grant shall be  determined  based
          upon the closing  price on an exchange on that day or, if the Stock is
          not listed on an exchange, on the average of the closing bid and asked
          prices in the Over the Counter Market on that day.

                                       2
<PAGE>
6.   TERMS AND CONDITIONS OF OPTIONS

     a.   Each option granted  pursuant to the Option Plan shall be evidenced by
          a written stock option agreement (the "Option Agreement")  executed by
          the Company and the person to whom such option is granted.  The Option
          Agreement shall designate whether the option is an ISO or an NSO.

     b.   The term of each ISO and NSO shall be no more  than 10  years,  except
          that the term of each ISO  issued to any person  possessing  more than
          10% of the voting  power of all classes of stock of the Company or any
          Affiliate shall be no more than 5 years.  Subsequently issued options,
          if Stock becomes available because of further allocations or the lapse
          of previously outstanding options, will extend for terms determined by
          the Board or the  Committee  but in no event shall an ISO be exercised
          after the expiration of 10 years from the date of its grant.

     c.   In the case of ISOs, the aggregate fair market value (determined as of
          the time  such  option  is  granted)  of the  Stock to which  ISOs are
          exercisable for the first time by such individual  during any calendar
          year (under this Option Plan and any other plans of the Company or its
          Affiliates  if any) shall not exceed the amount  specified  in Section
          422(d) of the Internal  Revenue Code,  or any  successor  provision in
          effect at the time an ISO becomes exercisable.

     d.   The Option  Agreement  may contain  such other terms,  provisions  and
          conditions regarding vesting, repurchase or other provisions as may be
          determined  by the Board.  To the extent  such terms,  provisions  and
          conditions  are  inconsistent  with this  Option  Plan,  the  specific
          provisions of the Option Plan shall prevail. If an option, or any part
          thereof,  is intended to qualify as an ISO, the Option Agreement shall
          contain those terms and conditions,  which the Board  determines,  are
          necessary  to so qualify  under  Section 422 of the  Internal  Revenue
          Code.

     e.   The Board shall have full power and  authority to extend the period of
          time for which any option  granted  under the Option Plan is to remain
          exercisable  following the option holder's  cessation of service as an
          employee,   director  or  consultant,   including  without  limitation
          cessation as a result of death or disability;  provided, however, that
          in no event  shall  such  option be  exercisable  after the  specified
          expiration date of the option term.

     f.   As a condition  to option  grants  under the Option  Plan,  the option
          holder  agrees  to grant  the  Company  the  repurchase  rights as the
          Company  may at its  option  require  and  as  may be set  forth  in a
          separate  repurchase  agreement.  Any option  granted under the Option
          Plan may be subject to a vesting  schedule  as  provided in the Option
          Agreement and,  except as provided in this Section 6 herein,  only the
          vested  portion of such option may be exercised at any time during the
          Option Period. All rights to exercise any option shall lapse and be of
          no  further  effect  whatsoever  immediately  if the  option  holder's
          service as an employee  is  terminated  for  "Cause"  (as  hereinafter
          defined) or if the option  holder  voluntarily  terminates  the option
          holder's  service as an employee.  The unvested  portion of the option
          will  lapse  and  be  of  no  further  effect   immediately  upon  any
          termination of employment of the option holder for any reason.  In the
          remaining  cases where the option  holder's  service as an employee is
          terminated due to death, permanent disability, or is terminated by the
          Company  (or  its  affiliates)  without  Cause  at  any  time,  unless
          otherwise provided by the Board, the vested portion of the option will
          extend for a period of three (3) months  following the  termination of
          employment  and  shall  lapse  and be of no  further  force or  effect
          whatsoever  only if it is not  exercised  before the end of such three
          (3) month period.  "Cause" shall be defined in an Employment Agreement
          between  Company and option  holder and if none there shall be "Cause"
          for  termination  if (i) the option  holder is  convicted of a felony,
          (ii) the option holder  engages in any  fraudulent or other  dishonest
          act to the detriment of the Company,  (iii) the option holder fails to
          report for work on a regular  basis,  except for periods of authorized
          absence or bona fide illness,  (iv) the option holder  misappropriates
          trade  secrets,   customer  lists  or  other  proprietary  information
          belonging  to the Company for the option  holder's  own benefit or for
          the  benefit of a  competitor,  (v) the option  holder  engages in any
          willful  misconduct  designed to harm the Company or its stockholders,
          or (vi) the option holder fails to perform properly assigned duties.

     g.   No  fractional  shares of Stock shall be issued under the Option Plan,
          whether by initial grants or any adjustments to the Option Plan.

                                       3
<PAGE>
7.   USE OF PROCEEDS

     Cash  proceeds  realized from the sale of Stock under the Option Plan shall
     constitute general funds of the Company.

8.   AMENDMENT, SUSPENSION OR TERMINATION OF PLAN

     a.   The Board may at any time  suspend or terminate  the Option Plan,  and
          may amend it from time to time in such  respects as the Board may deem
          advisable provided that (i) such amendment,  suspension or termination
          complies  with all  applicable  state  and  federal  requirements  and
          requirements  of any stock exchange on which the Stock is then listed,
          including  any  applicable  requirement  that  the  Option  Plan or an
          amendment to the Option Plan be approved by the stockholders, and (ii)
          the Board  shall not amend the Option  Plan to  increase  the  maximum
          number of shares of Stock  subject to ISOs under the Option Plan or to
          change the  description  or class of persons  eligible to receive ISOs
          under the Option Plan without the consent of the  stockholders  of the
          Company  sufficient to approve the Option Plan in the first  instance.
          The  Option  Plan  shall   terminate  on  the  earlier  of  (i)  tenth
          anniversary  of the  Plan's  approval  or (ii)  the  date on  which no
          additional shares of Stock are available for issuance under the Option
          Plan.

     b.   No  option  may  be  granted   during  any  suspension  or  after  the
          termination  of the  Option  Plan,  and no  amendment,  suspension  or
          termination  of the Option  Plan shall,  without  the option  holder's
          consent,  alter or impair  any rights or  obligation  under any option
          granted under the Option Plan.

     c.   The Board, with the consent of affected option holders, shall have the
          authority to cancel any or all  outstanding  options  under the Option
          Plan and  grant new  options  having an  exercise  price  which may be
          higher or lower than the exercise price of canceled options.

     d.   Nothing  contained  herein shall be construed to permit a termination,
          modification or amendment adversely affecting the rights of any option
          holder  under an  existing  option  theretofore  granted  without  the
          consent of the option holder.

9.   ASSIGNABILITY OF OPTIONS AND RIGHTS

     Each ISO and NSO granted  pursuant  to this  Option Plan shall,  during the
     option holder's  lifetime,  be exercisable  only by the option holder,  and
     neither  the option nor any right to purchase  Stock shall be  transferred,
     assigned or pledged by the option holder, by operation of law or otherwise,
     other than upon a beneficiary designation executed by the option holder and
     delivered to the Company or the laws of descent and distribution.

10.  PAYMENT UPON EXERCISE

     Payment  of the  purchase  price  upon  exercise  of any option or right to
     purchase  Stock  granted under this Option Plan shall be made by giving the
     Company  written  notice of such  exercise,  specifying  the number of such
     shares of Stock as to which the option is  exercised.  Such notice shall be
     accompanied  by  payment  of an amount  equal to the  Option  Price of such
     shares of Stock.  Such payment may be (i) cash, (ii) by check drawn against
     sufficient funds, (iii) such other  consideration as the Board, in its sole
     discretion, determines and is consistent with the Option Plan's purpose and
     applicable law, or (iv) any combination of the foregoing. Any Stock used to
     exercise  options to purchase  Stock  (including  Stock  withheld  upon the
     exercise of an option to pay the  purchase  price of the shares of Stock as
     to which the  option is  exercised)  shall be  valued  in  accordance  with
     procedures  established  by the  Board.  If  accepted  by the  Board in its
     discretion,  such  consideration  also may be paid through a  broker-dealer
     sale and remittance procedure pursuant to which the option holder (i) shall
     provide irrevocable written  instructions to a designated brokerage firm to
     effect the immediate sale of the purchased  Stock and remit to the Company,
     out of the sale proceeds available on the settlement date, sufficient funds
     to cover the aggregate  option price  payable for the purchased  Stock plus
     all applicable Federal and State income and employment taxes required to be
     withheld by the Company in  connection  with such  purchase  and (ii) shall
     provide written  directives to the Company to deliver the  certificates for
     the purchased  Stock  directly to such  brokerage firm in order to complete
     the sale transaction.

                                       4
<PAGE>
11.  WITHHOLDING TAXES

     a.   Shares  of Stock  issued  hereunder  shall be  delivered  to an option
          holder  only upon  payment by such person to the Company of the amount
          of any withholding tax required by applicable federal, state, local or
          foreign law.  The Company  shall not be required to issue any Stock to
          an option holder until such obligations are satisfied.

     b.   The  Board  may,   under  such  terms  and   conditions  as  it  deems
          appropriate,  authorize an option  holder to satisfy  withholding  tax
          obligations  under this  Section 11 by  surrendering  a portion of any
          Stock  previously  issued to the option  holder or by electing to have
          the  Company  withhold  shares of Stock from the Stock to be issued to
          the option  holder,  in each case having a fair market  value equal to
          the amount of the withholding tax required to be withheld.

12.  RATIFICATION

     This  Option Plan and all  options  issued  under this Option Plan shall be
     void  unless  this  Option  Plan is or was  approved or ratified by (i) the
     Board;  and (ii) a majority of the votes cast at a  stockholder  meeting at
     which a quorum  representing at least a majority of the outstanding  shares
     of Stock is (either in person or by proxy) present and voting on the Option
     Plan  within  twelve  months of the date this Option Plan is adopted by the
     Board.  No ISOs  shall be  exercisable  prior to the date such  stockholder
     approval is obtained.

13.  CORPORATE TRANSACTIONS

     a.   For the purpose of this  Section 13, a "Corporate  Transaction"  shall
          include  any of the  following  stockholder-approved  transactions  to
          which the Company is a party:

          (i)  a  merger  or  consolidation  in  which  the  Company  is not the
               surviving entity,  except for a transaction the principal purpose
               of which is to change the State of the Company's incorporation;

          (ii) the sale,  transfer or other  disposition of all or substantially
               all of the assets of the Company in liquidation or dissolution of
               the Company; or

         (iii) any reverse  merger in which the Company is the surviving  entity
               but in which beneficial  ownership of securities  possessing more
               than fifty  percent (50%) of the total  combined  voting power of
               the Company's  outstanding  securities are transferred to holders
               different from those who held such securities  immediately  prior
               to such merger.

     b.   Upon the  occurrence  of a  Corporate  Transaction,  if the  surviving
          corporation or the purchaser,  as the case may be, does not assume the
          obligations of the Company under the Option Plan, then irrespective of
          the vesting provisions contained in individual option agreements,  all
          outstanding  options shall become immediately  exercisable in full and
          each option holder will be afforded an  opportunity  to exercise their
          options prior to the consummation of the merger or sale transaction so
          that they can participate on a pro rata basis in the transaction based
          upon the number of shares of Stock  purchased  by them on  exercise of
          options if they so  desire.  To the  extent  that the  Option  Plan is
          unaffected  and  assumed by the  successor  corporation  or its parent
          company a  Corporate  Transaction  will have no effect on  outstanding
          options and the options  shall  continue in effect  according to their
          terms.

     c.   Each  outstanding  option  under this  Option Plan which is assumed in
          connection with the Corporate  Transaction or is otherwise to continue
          in effect  shall be  appropriately  adjusted,  immediately  after such
          Corporate Transaction, to apply and pertain to the number and class of
          securities  which  would  have  been  issued to the  option  holder in
          connection  with the  consummation  of such Corporate  Transaction had
          such person exercised the option  immediately  prior to such Corporate
          Transaction.  Appropriate adjustments shall also be made to the option
          price payable per share,  provided the aggregate  option price payable
          for such securities shall remain the same. In addition,  the class and
          number of  securities  available  for issuance  under this Option Plan
          following  the  consummation  of the  Corporate  Transaction  shall be
          appropriately adjusted.

     d.   The grant of options under this Option Plan shall in no way affect the
          right of the Company to adjust,  reclassify,  reorganize  or otherwise
          change its capital or  business  structure  or to merge,  consolidate,
          dissolve,  liquidate  or  sell  or  transfer  all or any  part  of its
          business or assets.

                                       5
<PAGE>
14.  REGULATORY APPROVALS

     The  obligation  of the Company with respect to Stock issued under the Plan
     shall be subject to all applicable  laws,  rules and  regulations  and such
     approvals  by  any  governmental  agencies  or  stock  exchanges  as may be
     required.  The Company reserves the right to restrict, in whole or in part,
     the  delivery  of  Stock  under  the  Plan  until  such  time as any  legal
     requirements  or  regulations  have been met  relating  to the  issuance of
     Stock, to their registration or qualification under the Securities Exchange
     Act of 1934, if applicable,  or any applicable state securities laws, or to
     their  listing  on any stock  exchange  at which time such  listing  may be
     applicable.

15.  NO EMPLOYMENT/SERVICE RIGHTS

     Neither the action of the Company in establishing this Option Plan, nor any
     action taken by the Board hereunder,  nor any provision of this Option Plan
     shall be construed so as to grant any individual the right to remain in the
     employ or service of the Company (or any parent,  subsidiary  or affiliated
     corporation) for any period of specific  duration,  and the Company (or any
     parent, subsidiary or affiliated corporation retaining the services of such
     individual)  may  terminate  or  change  the  terms  of  such  individual's
     employment  or  service  at any time and for any  reason,  with or  without
     cause.

16.  MISCELLANEOUS PROVISIONS

     a.   The  provisions  of this  Option Plan shall be governed by the laws of
          the State of Arizona,  as such laws are applied to  contracts  entered
          into  and  performed  in  such  State,  without  regard  to its  rules
          concerning conflicts of law.

     b.   The provisions of this Option Plan shall insure to the benefit of, and
          be binding upon, the Company and its successors or assigns, whether by
          Corporate Transaction or otherwise,  and the option holders, the legal
          representatives of their respective estates, their respective heirs or
          legatees and their permitted assignees.

     c.   The option holders shall have no dividend rights, voting rights or any
          other rights as a  stockholder  with respect to any options  under the
          Option  Plan prior to the  issuance  of a stock  certificate  for such
          Stock.

     d.   If there is a conflict  between the terms of any employment  agreement
          pursuant  to which  options  under this Plan are to be granted and the
          provisions of this Plan, the terms of the employment  agreement  shall
          prevail.

                                       6<PAGE>   1
                                                                     EXHIBIT 4.3

                                 FORM OF WARRANT

        THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR
RESOURCEPHOENIX.COM, A DELAWARE CORPORATION (THE "COMPANY"), SHALL HAVE RECEIVED
AN OPINION, IN FORM, SCOPE AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY,
OF COUNSEL WHO IS REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

                              WARRANT A TO PURCHASE

                         SHARES OF CLASS A COMMON STOCK

                                       OF

                               RESOURCEPHOENIX.COM

                             Expires June 5, 2003

No.: W-A_                                             Number of Shares: 500,000
Date of Issuance:  June 6, 2000

        FOR VALUE RECEIVED, subject to the provisions hereinafter set forth, the
undersigned, ReSourcePhoenix.com, a Delaware corporation (together with its
successors and assigns, the "Issuer"), hereby certifies that Torneaux Ltd. or
its registered assigns is entitled to subscribe for and purchase, during the
period specified in this Warrant, up to 500,000 shares (subject to adjustment as
hereinafter provided) of the duly authorized, validly issued, fully paid and
non-assessable Class A Common Stock (the "Common Stock") of the Issuer, at an
exercise price per share equal to the Warrant Price then in effect, subject,
however, to the provisions and upon the terms and conditions hereinafter set
forth. Capitalized terms used in this Warrant and not otherwise defined herein
shall have the respective meanings specified in Section 7 hereof.

        1. Term. The right to subscribe for and purchase shares of Warrant Stock
represented hereby shall commence on the date of issuance of this Warrant and
shall expire at

<PAGE>   2

5:00 p.m., eastern time, on June 5, 2003 (such period being the "Term");
provided, however, that the exercise of this Warrant shall be subject to the
following limitations:

        (i) the right to subscribe for and purchase the first 125,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
as of the date of this Warrant (the "First Exercise");

        (ii) the right to subscribe for and purchase the next 125,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
upon the sale by the Holder of that number of shares of Common Stock purchased
pursuant to the First Exercise (the "Second Exercise");

        (iii) the right to subscribe for and purchase the next 125,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of a portion of this Warrant shall be immediately granted to the Holder
upon the sale by the Holder of that number of shares of Common Stock purchased
pursuant to the Second Exercise (the "Third Exercise"); and

        (iv) the right to subscribe for and purchase the final 125,000 shares
(subject to adjustment as hereinafter provided) of Warrant Stock pursuant to the
exercise of the remaining portion of this Warrant shall be immediately granted
to the Holder upon the sale by the Holder of that number of shares of Common
Stock purchased pursuant to the Third Exercise.

If the registration statement contemplated by the Purchase Agreement is not
declared effective by the Securities and Exchange Commission, this Warrant, or
any unexercised portion thereof, may, at the Company's option, be canceled.

        2. Method of Exercise Payment; Issuance of New Warrant; Transfer and
Exchange.

        (a) Time of Exercise. The purchase rights represented by this Warrant
may be exercised in whole or in part at any time and from time to time during
the Term.

        (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part, by the surrender of this Warrant (with the exercise form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment to the Issuer of an amount of consideration therefor equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of Warrant Stock with respect to which this Warrant is then being
exercised, payable at such Holder's election by certified or official bank
check.

        (c) Issuance of Stock Certificates. In the event of any exercise of the
rights represented by this Warrant in accordance with and subject to the terms
and conditions hereof, (i) certificates for the shares of Warrant Stock so
purchased shall be dated the date of such exercise and delivered to the Holder
hereof within a reasonable time, not exceeding three (3) Trading Days after such
exercise, and the Holder hereof shall be deemed for all purposes to be the
Holder of the shares of Warrant Stock so purchased as of the date of such
exercise, and (ii) unless this Warrant has expired, a new Warrant representing
the number of shares of Warrant Stock, if any,

                                      -2-
<PAGE>   3

with respect to which this Warrant shall not then have been exercised shall also
be issued to the Holder hereof at the Issuer's expense within such time.

        (d) Transferability of Warrant. Subject to Section 2(e), this Warrant
may be transferred by a Holder without the consent of the Issuer. If transferred
pursuant to this subsection and subject to the provisions of subsection (e) of
this Section 2, this Warrant may be transferred on the books of the Issuer by
the Holder hereof in person or by duly authorized attorney, upon surrender of
this Warrant at the principal office of the Issuer, properly endorsed (by the
Holder executing an assignment in the form attached hereto) and upon payment of
any necessary transfer tax imposed upon such transfer. This Warrant is
exchangeable at the principal office of the Issuer for Warrants for the purchase
of the same aggregate number of shares of Warrant Stock, each new Warrant to
represent the right to purchase such number of shares of Warrant Stock as the
Holder hereof shall designate at the time of such exchange. All Warrants issued
on transfers or exchanges shall be dated the Original Issue Date and shall be
identical with this Warrant except as to the number of shares of Warrant Stock
issuable pursuant hereto.

        (e)    Compliance with Securities Laws.

               (i) The Holder of this Warrant, by acceptance hereof,
        acknowledges that this Warrant or the shares of Warrant Stock to be
        issued upon exercise hereof are being acquired solely for the Holder's
        own account and not as a nominee for any other party, and for
        investment, and that the Holder will not offer, sell or otherwise
        dispose of this Warrant or any shares of Warrant Stock to be issued upon
        exercise hereof except pursuant to an effective registration statement,
        or an exemption from registration, under the Securities Act and any
        applicable state securities laws.

               (ii) Except as provided in paragraph (iii) below, this Warrant
        and all certificates representing shares of Warrant Stock issued upon
        exercise hereof shall be stamped or imprinted with a legend in
        substantially the following form:

               THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON
               EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
               OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
               SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED OR
               OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
               AND UNDER APPLICABLE STATE SECURITIES LAWS OR
               RESOURCEPHOENIX.COM, A DELAWARE CORPORATION (THE "COMPANY"),
               SHALL HAVE RECEIVED AN OPINION, IN FORM, SCOPE AND SUBSTANCE
               REASONABLY ACCEPTABLE TO THE COMPANY, OF COUNSEL WHO IS
               REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION OF SUCH
               SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF
               APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

                                      -3-
<PAGE>   4

               (iii) The restrictions imposed by this subsection (e) upon the
        transfer of this Warrant or the shares of Warrant Stock to be purchased
        upon exercise hereof shall terminate (A) when such securities shall have
        been resold pursuant to an effective registration statement under the
        Securities Act, (B) upon the Issuer's receipt of an opinion of counsel,
        in form and substance reasonably satisfactory to the Issuer, addressed
        to the Issuer to the effect that such restrictions are no longer
        required to ensure compliance with the Securities Act and state
        securities laws or (C) upon the Issuer's receipt of other evidence
        reasonably satisfactory to the Issuer that such registration and
        qualification under the Securities Act and state securities laws are not
        required. Whenever such restrictions shall cease and terminate as to any
        such securities, the Holder thereof shall be entitled to receive from
        the Issuer (or its transfer agent and registrar), without expense (other
        than applicable transfer taxes, if any), new Warrants (or, in the case
        of shares of Warrant Stock, new stock certificates) of like tenor not
        bearing the applicable legend required by paragraph (ii) above relating
        to the Securities Act and applicable state securities laws.

        (f) Continuing Rights of Holder. The Issuer will, at the time of or at
any time after each exercise of this Warrant, upon the written request of the
Holder hereof, acknowledge in writing the extent, if any, of its continuing
obligation to afford to such Holder all rights to which such Holder shall
continue to be entitled after such exercise in accordance with the terms of this
Warrant; provided that if any such Holder shall fail to make any such request,
the failure shall not affect the continuing obligation of the Issuer to afford
such rights to such Holder.

        3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

        (a) Stock Fully Paid. The Issuer represents, warrants, covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise hereunder will, upon issuance, be duly authorized,
validly issued, fully paid and non-assessable and free from all taxes and liens,
security interest, charges and encumbrances of any nature whatsoever created by
or through the Issuer. The Issuer further represents, warrants, covenants and
agrees that during the period within which this Warrant may be exercised, the
Issuer will at all times have authorized and reserved for the purpose of the
issue upon exercise of this Warrant a sufficient number of shares of Common
Stock to provide for the exercise of this Warrant.

        (b) Reservation. If any shares of Common Stock required to be reserved
for issuance upon exercise of this Warrant or as otherwise provided hereunder
require registration or qualification with any governmental authority under any
federal law before such shares may be so issued, the Issuer will in good faith
use its best efforts as expeditiously as possible at its expense to cause such
shares to be duly registered. If the Issuer shall list any shares of Common
Stock on any securities exchange or market it will, at its expense, list
thereon, maintain and increase when necessary such listing, of, all shares of
Warrant Stock from time to time issued upon exercise of this Warrant or as
otherwise provided hereunder, and, to the extent permissible under the
applicable securities exchange rules, all unissued shares of Warrant Stock which
are at any time issuable hereunder, so long as any shares of Common Stock shall
be so listed. The Issuer will also so list on each securities exchange or
market, and will maintain such listing of, any other securities which the Holder
of this Warrant shall be entitled to receive upon the

                                      -4-
<PAGE>   5

exercise of this Warrant if at the time any securities of the same class shall
be listed on such securities exchange or market by the Issuer.

        (c) Covenants. The Issuer will (i) not permit the par value, if any, of
its Common Stock to exceed the then effective Warrant Price, (ii) not amend or
modify any provision of the Certificate of Incorporation or by-laws of the
Issuer in any manner that would adversely affect in any way the powers,
preferences or relative participating, optional or other special rights of the
Common Stock or which would adversely affect the rights of the Holders of the
Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may validly and legally issue fully paid and nonassessable
shares of Common Stock, free and clear of any liens, security interests,
charges, claims, encumbrances and restrictions (other than as provided herein or
created by the Holders hereof) upon the exercise of this Warrant, and (iv)
obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the
Issuer to perform its obligations under this Warrant.

        (d) Loss, Theft, Destruction of Warrants. Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft, destruction
or mutilation of any Warrant and, in the case of any such loss, theft or
destruction, upon receipt of indemnity or security satisfactory to the Issuer
or, in the case of any such mutilation, upon surrender and cancellation of such
Warrant, the Issuer will make and deliver, in lieu of such lost, stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

        4. Adjustment of Warrant Price and Warrant Share Number. The number and
kind of Securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to adjustment from time to time upon the happening of
certain events as follows:

        (a) Recapitalization, Reorganization, Reclassification, Consolidation,
Merger or Sale.

               (i) In case the Issuer after the Original Issue Date shall do any
        of the following (each, a "Triggering Event"): (a) consolidate with or
        merge into any other Person and the Issuer shall not be the continuing
        or surviving Person of such consolidation or merger, or (b) permit any
        other Person to consolidate with or merge into the Issuer and the Issuer
        shall be the continuing or surviving Person but, in connection with such
        consolidation or merger, any Capital Stock of the Issuer shall be
        changed into or exchanged for Securities of any other Person or cash or
        any other property, or (c) transfer all or substantially all of its
        properties or assets to any other Person, or (d) effect a capital
        reorganization or reclassification of its Capital Stock, then, and in
        the case of each such Triggering Event, proper provision shall be made
        so that, upon the basis and the terms and in the manner provided in this
        Warrant, the Holder of this Warrant shall be entitled upon the exercise
        hereof at any time after the consummation of such Triggering Event, to
        the extent this Warrant is not exercised prior to such Triggering Event,
        to receive at the Warrant Price in effect at the time immediately prior
        to the consummation of such Triggering Event in lieu of the Common Stock
        issuable upon such exercise of this Warrant prior to such Triggering
        Event, the Securities, cash and property to which such Holder would have
        been entitled upon the consummation of such Triggering Event if such
        Holder had exercised the rights represented by this Warrant immediately
        prior

                                      -5-
<PAGE>   6

        thereto, subject to adjustments (subsequent to such corporate action) as
        nearly equivalent as possible to the adjustments provided for in Section
        4 hereof.

               (ii) Notwithstanding anything contained in this Warrant to the
        contrary, the Issuer will not effect any Triggering Event unless, prior
        to the consummation thereof, each Person (other than the Issuer) which
        may be required to deliver any Securities, cash or property upon the
        exercise of this Warrant as provided herein shall assume, by written
        instrument delivered to, and reasonably satisfactory to, the Holder of
        this Warrant, (A) the obligations of the Issuer under this Warrant (and
        if the Issuer shall survive the consummation of such Triggering Event,
        such assumption shall be in addition to, and shall not release the
        Issuer from, any continuing obligations of the Issuer under this
        Warrant) and (B) the obligation to deliver to such Holder such shares of
        Securities, cash or property as, in accordance with the foregoing
        provisions of this subsection (a), such Holder shall be entitled to
        receive, and such Person shall have similarly delivered to such Holder
        an opinion of counsel for such Person, which counsel shall be reasonably
        satisfactory to such Holder, stating that this Warrant shall thereafter
        continue in full force and effect and the terms hereof (including,
        without limitation, all of the provisions of this subsection (a)) shall
        be applicable to the Securities, cash or property which such Person may
        be required to deliver upon any exercise of this Warrant or the exercise
        of any rights pursuant hereto.

        (b) Subdivision or Combination of Shares. If the Issuer, at any time
while this Warrant is outstanding, shall subdivide or combine any shares of
Common Stock, (i) in case of subdivision of shares, the Warrant Price shall be
proportionately reduced (as at the effective date of such subdivision or, if the
Issuer shall take a record of holders of its Common Stock for the purpose of so
subdividing, as at the applicable record date, whichever is earlier) to reflect
the increase in the total number of shares of Common Stock outstanding as a
result of such subdivision, or (ii) in the case of a combination of shares, the
Warrant Price shall be proportionately increased (as at the effective date of
such combination or, if the Issuer shall take a record of holders of its Common
Stock for the purpose of so combining, as at the applicable record date,
whichever is earlier) to reflect the reduction in the total number of shares of
Common Stock outstanding as a result of such combination.

        (c) Certain Dividends and Distributions. If the Issuer, at any time
while this Warrant is outstanding, shall:

               (i) Stock Dividends. Pay a dividend in, or make any other
        distribution to its stockholders (without consideration therefor) of,
        shares of Common Stock, the Warrant Price shall be adjusted, as at the
        date the Issuer shall take a record of the holders of the Issuer's
        Capital Stock for the purpose of receiving such dividend or other
        distribution (or if no such record is taken, as at the date of such
        payment or other distribution), to that price determined by multiplying
        the Warrant Price in effect immediately prior to such record date (or if
        no such record is taken, then immediately prior to such payment or other
        distribution), by a fraction (1) the numerator of which shall be the
        total number of shares of Common Stock outstanding immediately prior to
        such dividend or distribution, and (2) the denominator of which shall be
        the total number of shares of Common Stock outstanding immediately after
        such dividend or distribution (plus in the event that the

                                      -6-
<PAGE>   7

        Issuer paid cash for fractional shares, the number of additional shares
        which would have been outstanding had the Issuer issued fractional
        shares in connection with said dividends); or

               (ii) Other Dividends. Pay a dividend on, or make any distribution
        of its assets upon or with respect to (including, but not limited to, a
        distribution of its property as a dividend in liquidation or partial
        liquidation or by way of return of capital), the Common Stock (other
        than as described in clause (i) of this subsection (c)), or in the event
        that the Company shall offer options or rights to subscribe for shares
        of Common Stock, or issue any Common Stock Equivalents, to all of its
        holders of Common Stock, then on the record date for such payment,
        distribution or offer or, in the absence of a record date, on the date
        of such payment, distribution or offer, the Holder shall receive what
        the Holder would have received had it exercised this Warrant in full
        immediately prior to the record date of such payment, distribution or
        offer or, in the absence of a record date, immediately prior to the date
        of such payment, distribution or offer.

        (d) Issuance of Additional Shares of Common Stock. If the Issuer, at any
time while this Warrant is outstanding, shall issue any Additional Shares of
Common Stock (otherwise than as provided in the foregoing subsections (a)
through (c) of this Section 4), at a price per share less than the Warrant Price
then in effect or less than the Per Share Market Value then in effect or without
consideration, then the Warrant Price upon each such issuance shall be adjusted
to that price (rounded to the nearest cent) determined by multiplying the
Warrant Price then in effect by a fraction:

               (i) the numerator of which shall be equal to the sum of (A) the
        number of shares of Common Stock outstanding immediately prior to the
        issuance of such Additional Shares of Common Stock plus (B) the number
        of shares of Common Stock (rounded to the nearest whole share) which the
        aggregate consideration for the total number of such Additional Shares
        of Common Stock so issued would purchase at a price per share equal to
        the greater of the Per Share Market Value then in effect and the Warrant
        Price then in effect, and

               (ii) the denominator of which shall be equal to the number of
        shares of Common Stock outstanding immediately after the issuance of
        such Additional Shares of Common Stock.

        The provisions of this subsection (d) shall not apply under any of the
circumstances for which an adjustment is provided in subsections (a), (b) or (c)
of this Section 4. No adjustment of the Warrant Price shall be made under this
subsection (d) upon the issuance of any Additional Shares of Common Stock which
are issued pursuant to any Common Stock Equivalent if upon the issuance of such
Common Stock Equivalent (x) any adjustment shall have been made pursuant to
subsection (e) of this Section 4 or (y) no adjustment was required pursuant to
subsection (e) of this Section 4. No adjustment of the Warrant Price shall be
made under this subsection (d) in an amount less than $.01 per share, but any
such lesser adjustment shall be carried forward and shall be made at the time
and together with the next subsequent adjustment, if any, which together with
any adjustments so carried forward shall amount to $.01 per share or more;
provided that upon any adjustment of the Warrant Price as a result of any
dividend or

                                      -7-
<PAGE>   8

distribution payable in Common Stock or Convertible Securities or the
reclassification, subdivision or combination of Common Stock into a greater or
smaller number of shares, the foregoing figure of $.01 per share (or such figure
as last adjusted) shall be adjusted (to the nearest one-half cent) in proportion
to the adjustment in the Warrant Price.

        (e) Issuance of Common Stock Equivalents. If the Issuer, at any time
while this Warrant is outstanding, shall issue any Common Stock Equivalent and
the price per share for which Additional Shares of Common Stock may be issuable
thereafter pursuant to such Common Stock Equivalent shall be less than the
Warrant Price then in effect or less than the Per Share Market Value then in
effect, or if, after any such issuance of Common Stock Equivalents, the price
per share for which Additional Shares of Common Stock may be issuable thereafter
is amended or adjusted, and such price as so amended shall be less than the
Warrant Price or less than the Per Share Market Value in effect at the time of
such amendment, then the Warrant Price upon each such issuance or amendment
shall be adjusted as provided in the first sentence of subsection (d) of this
Section 4 on the basis that (1) the maximum number of Additional Shares of
Common Stock issuable pursuant to all such Common Stock Equivalents shall be
deemed to have been issued (whether or not such Common Stock Equivalents are
actually then exercisable, convertible or exchangeable in whole or in part) as
of the earlier of (A) the date on which the Issuer shall enter into a firm
contract for the issuance of such Common Stock Equivalent, or (B) the date of
actual issuance of such Common Stock Equivalent, and (2) the aggregate
consideration for such maximum number of Additional Shares of Common Stock shall
be deemed to be the minimum consideration received or receivable by the Issuer
for the issuance of such Additional Shares of Common Stock pursuant to such
Common Stock Equivalent. No adjustment of the Warrant Price shall be made under
this subsection (e) upon the issuance of any Convertible Security which is
issued pursuant to the exercise of any warrants or other subscription or
purchase rights therefor, if any adjustment shall previously have been made in
the Warrant Price then in effect upon the issuance of such warrants or other
rights pursuant to this subsection (e). If no adjustment is required under this
subsection (e) upon issuance of any Common Stock Equivalent or once an
adjustment is made under this subsection (e) based upon the Per Share Market
Value in effect on the date of such adjustment, no further adjustment shall be
made under this subsection (e) based solely upon a change in the Per Share
Market Value after such date.

        (f) Purchase of Common Stock by the Issuer. If the Issuer at any time
while this Warrant is outstanding shall, directly or indirectly through a
Subsidiary or otherwise, purchase, redeem or otherwise acquire any shares of
Common Stock at a price per share greater than the Per Share Market Value then
in effect, then the Warrant Price upon each such purchase, redemption or
acquisition shall be adjusted to that price determined by multiplying such
Warrant Price by a fraction (i) the numerator of which shall be the number of
shares of Common Stock outstanding immediately prior to such purchase,
redemption or acquisition minus the number of shares of Common Stock which the
aggregate consideration for the total number of such shares of Common Stock so
purchased, redeemed or acquired would purchase at the Per Share Market Value;
and (ii) the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such purchase, redemption or acquisition. For the
purposes of this subsection (f), the date as of which the Per Share Market Value
shall be computed shall be the earlier of (x) the date on which the Issuer shall
enter into a firm contract for the purchase, redemption or acquisition of such
Common Stock, or (y) the date of actual purchase, redemption

                                      -8-
<PAGE>   9

or acquisition of such Common Stock. For the purposes of this subsection (f), a
purchase, redemption or acquisition of a Common Stock Equivalent shall be deemed
to be a purchase of the underlying Common Stock, and the computation herein
required shall be made on the basis of the full exercise, conversion or exchange
of such Common Stock Equivalent on the date as of which such computation is
required hereby to be made, whether or not such Common Stock Equivalent is
actually exercisable, convertible or exchangeable on such date.

        (g) Other Provisions Applicable to Adjustments Under this Section 4. The
following provisions shall be applicable to the making of adjustments in the
Warrant Price hereinbefore provided in Section 4:

               (i) Computation of Consideration. The consideration received by
        the Issuer shall be deemed to be the following: to the extent that any
        Additional Shares of Common Stock or any Common Stock Equivalents shall
        be issued for a cash consideration, the consideration received by the
        Issuer therefor, or if such Additional Shares of Common Stock or Common
        Stock Equivalents are offered by the Issuer for subscription, the
        subscription price, or, if such Additional Shares of Common Stock or
        Common Stock Equivalents are sold to underwriters or dealers for public
        offering without a subscription offering, the public offering price, in
        any such case excluding any amounts paid or receivable for accrued
        interest or accrued dividends and without deduction of any compensation,
        discounts, commissions, or expenses paid or incurred by the Issuer for
        or in connection with the underwriting thereof or otherwise in
        connection with the issue thereof; to the extent that such issuance
        shall be for a consideration other than cash, then, except as herein
        otherwise expressly provided, the fair market value of such
        consideration at the, time of such issuance as determined in good faith
        by the Board. The consideration for any Additional Shares of Common
        Stock issuable pursuant to any Common Stock Equivalents shall be the
        consideration received by the Issuer for issuing such Common Stock
        Equivalents, plus the additional consideration payable to the Issuer
        upon the exercise, conversion or exchange of such Common Stock
        Equivalents. In case of the issuance at any time of any Additional
        Shares of Common Stock or Common Stock Equivalents in payment or
        satisfaction of any dividend upon any class of Capital Stock of the
        Issuer other than Common Stock, the Issuer shall be deemed to have
        received for such Additional Shares of Common Stock or Common Stock
        Equivalents a consideration equal to the amount of such dividend so paid
        or satisfied. In any case in which the consideration to be received or
        paid shall be other than cash, the Board shall notify the Holder of this
        Warrant of its determination of the fair market value of such
        consideration prior to payment or accepting receipt thereof. If, within
        thirty (30) days after receipt of said notice, the Majority Holders
        shall notify the Board in writing of their objection to such
        determination, a determination of the fair market value of such
        consideration shall be made by an Independent Appraiser selected by the
        Majority Holders with the approval of the Board (which approval shall
        not be unreasonably withheld), whose fees and expenses shall be paid by
        the Issuer.

               (ii) Readjustment of Warrant Price. Upon the expiration or
        termination of the right to convert, exchange or exercise any Common
        Stock Equivalent the issuance of which effected an adjustment in the
        Warrant Price, if such Common Stock Equivalent shall not have been
        converted, exercised or exchanged in its entirety, the number of

                                      -9-
<PAGE>   10

        shares of Common Stock deemed to be issued and outstanding by reason of
        the fact that they were issuable upon conversion, exchange or exercise
        of any such Common Stock Equivalent shall no longer be computed as set
        forth above, and the Warrant Price shall forthwith be readjusted and
        thereafter be the price which it would have been (but reflecting any
        other adjustments in the Warrant Price made pursuant to the provisions
        of this Section 4 after the issuance of such Common Stock Equivalent)
        had the adjustment of the Warrant Price been made in accordance with the
        issuance or sale of the number of Additional Shares of Common Stock
        actually issued upon conversion, exchange or issuance of such Common
        Stock Equivalent and thereupon only the number of Additional Shares of
        Common Stock actually so issued shall be deemed to have been issued and
        only the consideration actually received by the Issuer (computed as in
        clause (i) of this subsection (g)) shall be deemed to have been received
        by the Issuer.

               (iii) Outstanding Common Stock. The number of shares of Common
        Stock at any time outstanding shall (A) not include any shares thereof
        then directly or indirectly owned or held by or for the account of the
        Issuer or any of its Subsidiaries, and (B) be deemed to include all
        shares of Class A or Class B common stock outstanding as of such time,
        all shares of Class A or Class B common stock then issuable upon
        conversion, exercise or exchange of any then outstanding Common Stock
        Equivalents or any other evidences of Indebtedness, shares of Capital
        Stock or other Securities which are or may be at any time convertible
        into or exchangeable for shares of Class A or Class B common stock or
        Other Common Stock.

        (h) Other Action Affecting Common Stock. In case after the Original
Issue Date the Issuer shall take any action affecting its Common Stock, other
than an action described in any of the foregoing subsections (a) through (g) of
this Section 4, inclusive, and the failure to make any adjustment would not
fairly protect the purchase rights represented by this Warrant in accordance
with the essential intent and principle of this Section 4, then the Warrant
Price shall be adjusted in such manner and at such time as the Board may in good
faith determine to be equitable in the circumstances.

        (i) Adjustment of Warrant Share Number. Upon each adjustment in the
Warrant Price pursuant to any of the foregoing provisions of this Section 4, the
Warrant Share Number shall be adjusted, to the nearest one hundredth of a whole
share, to the product obtained by multiplying the Warrant Share Number
immediately prior to such adjustment in the Warrant Price by a fraction, the
numerator of which shall be the Warrant Price immediately before giving effect
to such adjustment and the denominator of which shall be the Warrant Price
immediately after giving effect to such adjustment.

        (j) Form of Warrant after Adjustments. The form of this Warrant need not
be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

        5. Notice of Adjustments. Whenever the Warrant Price or Warrant Share
Number shall be adjusted pursuant to Section 4 hereof (for purposes of this
Section 5, each an "adjustment"), the Issuer shall cause its Chief Financial
Officer to prepare and execute a certificate setting forth, in reasonable
detail, the event requiring the adjustment, the amount of

                                      -10-
<PAGE>   11

the adjustment, the method by which such adjustment was calculated (including a
description of the basis on which the Board made any determination hereunder),
and the Warrant Price and Warrant Share Number after giving effect to such
adjustment, and shall cause copies of such certificate to be delivered to the
Holder of this Warrant promptly after each adjustment. Any dispute between the
Issuer and the Holder of this Warrant with respect to the matters set forth in
such certificate may at the option of the Holder of this Warrant be submitted to
one of the national accounting firms currently known as the "big five" selected
by the Holder, provided that the Issuer shall have ten (10) days after receipt
of notice from such Holder of its selection of such firm to object thereto, in
which case such Holder shall select another such firm and the Issuer shall have
no such right of objection. The firm selected by the Holder of this Warrant as
provided in the preceding sentence shall be instructed to deliver a written
opinion as to such matters to the Issuer and such Holder within thirty (30) days
after submission to it of such dispute. Such opinion shall be final and binding
on the parties hereto. The fees and expenses of such accounting firm shall be
paid by the Issuer if the Issuer's calculation of the adjustment was incorrect.

        6. Fractional Shares. No fractional shares of Warrant Stock will be
issued in connection with and exercise hereof, but in lieu of such fractional
shares, the Issuer shall make a cash payment therefor equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

        7. Definitions. For the purposes of this Warrant, the following terms
have the following meanings:

               "Additional Shares of Common Stock" means all shares of Common
        Stock issued by the Issuer after the Original Issue Date, and all shares
        of Other Common, if any, issued by the Issuer after the Original Issue
        Date, except: (i) the Warrant Stock; (ii) any shares of Common Stock
        issued pursuant to the Purchase Agreement; (iii) any shares issued to
        Peter Benz pursuant to a warrant to purchase up to 75,000 shares of
        Common Stock at $2.81 per share; (iv) any shares of Common Stock issued
        to a bank or financing institution in connection with a loan, credit or
        lease facility; (v) any shares of Common Stock or preferred stock issued
        in connection with any of the Company's current option plans, stock
        purchase plans, rights plans, currently outstanding warrants or options,
        acquisition of products, licenses or other assets and strategic
        partnerships or joint ventures (the primary purpose of which is not to
        raise equity); and (vi) any shares of Common Stock or preferred stock
        issued to Gus Constantin in connection with a financing arrangement.

               "Board" shall mean the Board of Directors of the Issuer.

               "Capital Stock" means and includes (i) any and all shares,
        interests, participations or other equivalents of or interests in
        (however designated) corporate stock, including, without limitation,
        shares of preferred or preference stock, (ii) all partnership interests
        (whether general or limited) in any Person which is a partnership, (iii)
        all membership interests or limited liability company interests in any
        limited liability company, and (iv) all equity or ownership interests in
        any Person of any other type.

                                      -11-
<PAGE>   12

               "Certificate of Incorporation" means the Certificate of
        Incorporation, as amended, of the Issuer as in effect on the Original
        Issue Date, and as hereafter from time to time amended, modified,
        supplemented or restated in accordance with the terms hereof and thereof
        and pursuant to applicable law.

               "Common Stock" means the Common Stock, $.001 par value, of the
        Issuer and any other Capital Stock into which such stock may hereafter
        be changed.

               "Common Stock Equivalent" means any Convertible Security or
        warrant, option or other right to subscribe for or purchase any
        Additional Shares of Common Stock or any Convertible Security.

               "Convertible Securities" means evidences of Indebtedness, shares
        of Capital Stock or other Securities which are or may be at any time
        convertible into or exchangeable for Additional Shares of Common Stock.
        The term "Convertible Security" means one of the Convertible Securities.

               "Governmental Authority" means any governmental, regulatory or
        self-regulatory entity, department, body, official, authority,
        commission, board, agency or instrumentality, whether federal, state or
        local, and whether domestic or foreign.

               "Holders" mean the Persons who shall from time to time own any
        Warrant. The term "Holder" means one of the Holders.

               "Independent Appraiser" means a nationally recognized or major
        regional investment banking firm or firm of independent certified public
        accountants of recognized standing (which may be the firm that regularly
        examines the financial statements of the Issuer) that is regularly
        engaged in the business of appraising the Capital Stock or assets of
        corporations or other entities as going concerns, and which is not
        affiliated with either the Issuer or the Holder of any Warrant.

               "Issuer" means ReSourcePhoenix.com, a Delaware corporation, and
        its successors.

               "Majority Holders" means at any time the Holders of Warrants
        exercisable for a majority of the shares of Warrant Stock issuable under
        the Warrants at the time outstanding.

               "Original Issue Date" means June 6, 2000.

               "Other Common" means any other Capital Stock of the Issuer of any
        class which shall be authorized at any time after the date of this
        Warrant (other than Common Stock) and which shall have the right to
        participate in the distribution of earnings and assets of the Issuer
        without limitation as to amount.

               "Person" means an individual, corporation, limited liability
        company, partnership, joint stock company, trust, unincorporated
        organization, joint venture, Governmental Authority or other entity of
        whatever nature.

                                      -12-
<PAGE>   13

               "Per Share Market Value" means on any particular date (a) the
        closing bid price per share of the Common Stock on such date the Nasdaq
        SmallCap Market, Nasdaq National Market or other registered national
        stock exchange on which the Common Stock is then listed or if there is
        no such price on such date, then the closing bid price on such exchange
        or quotation system on the date nearest preceding such date, or (b) if
        the Common Stock is not listed then on the Nasdaq SmallCap Market,
        Nasdaq National Market or any registered national stock exchange, the
        closing bid price for a share of Common Stock in the over-the-counter
        market, as reported by NASDAQ or in the National Quotation Bureau
        Incorporated or similar organization or agency succeeding to its
        functions of reporting prices) at the close of business on such date, or
        (c) if the Common Stock is not then reported by NASDAQ the National
        Quotation Bureau Incorporated (or similar organization or agency
        succeeding to its functions of reporting prices), then the average of
        the "Pink Sheet" quotes for the relevant conversion period, as
        determined in good faith by the holder, or (d) if the Common Stock is
        not then publicly traded the fair market value of a share of Common
        Stock as determined by an Independent Appraiser selected in good faith
        by the Majority Holders; provided, however, that the Issuer, after
        receipt of the determination by such Independent Appraiser, shall have
        the right to select an additional Independent Appraiser, in which case,
        the fair market value shall be equal to the average of the
        determinations by each such Independent Appraiser; and provided, further
        that all determinations of the Per Share Market Value shall be
        appropriately adjusted for any stock dividends, stock splits or other
        similar transactions during such period. The determination of fair
        market value by an Independent Appraiser shall be based upon the fair
        market value of the Issuer determined on a going concern basis as
        between a willing buyer and a willing seller and taking into account all
        relevant factors determinative of value, and shall be final and binding
        on all parties. In determining the fair market value of any shares of
        Common Stock, no consideration shall be given to any restrictions on
        transfer of the Common Stock imposed by agreement or by federal or state
        securities laws, or to the existence or absence of, or any limitations
        on, voting rights.

               "Purchase Agreement" means the Common Stock Purchase Agreement
        dated as of June 6, 2000 among the Issuer and the investor(s) a party
        thereto.

               "Securities" means any debt or equity securities of the Issuer,
        whether now or hereafter authorized, any instrument convertible into or
        exchangeable for securities or a security, and any option, warrant or
        other right to purchase or acquire any security. "Security" means one of
        the Securities.

               "Securities Act" means the Securities Act of 1933, as amended, or
        any similar federal statute then in effect.

               "Subsidiary" means any corporation at least 50% of whose
        outstanding Voting Stock shall at the time be owned directly or
        indirectly by the Issuer or by one or more of its Subsidiaries, or by
        the Issuer and one or more of its Subsidiaries.

               "Term" has the meaning specified in Section 1 hereof.

                                      -13-
<PAGE>   14

               "Trading Day" means (a) a day on which the Common Stock is traded
        on the Nasdaq SmallCap Market, Nasdaq National Market or other
        registered national stock exchange on which the Common Stock has been
        listed, or (b) if the Common Stock is not listed on the Nasdaq SmallCap
        Market, Nasdaq National Market or other registered national stock
        exchange on which the Common Stock has been listed, a day on which the
        Common Stock is quoted in the over-the-counter market, as reported by
        the OTC Bulletin Board, or (c) if the Common Stock is not quoted on the
        OTC Bulletin Board, a day on which the Common Stock is quoted in the
        over-the-counter market as reported by the National Quotation Bureau
        Incorporated (or any similar organization or agency succeeding its
        functions of reporting prices); provided, however, that in the event
        that the Common Stock is not listed or quoted as set forth in (a), (b)
        and (c) hereof, then Trading Day shall mean any day except Saturday,
        Sunday and any day which shall be a legal holiday or a day on which
        banking institutions in the State of New York are authorized or required
        by law or other government action to close.

               "Voting Stock", as applied to the Capital Stock of any
        corporation, means Capital Stock of any class or classes (however
        designated) having ordinary voting power for the election of a majority
        of the members of the Board of Directors (or other governing body) of
        such corporation, other than Capital Stock having such power only by
        reason of the happening of a contingency.

               "Warrants" means the Warrants issued and sold pursuant to the
        Purchase Agreement, including, without limitation, this Warrant, and any
        other warrants of like tenor issued in substitution or exchange for any
        thereof pursuant to the provisions of Section 2(c), 2(d) or 2(e) hereof
        or of any of such other Warrants.

               "Warrant Price" means $2.50, as such price may be adjusted from
        time to time as shall result from the adjustments specified in Section 4
        herein.

               "Warrant Share Number" means at any time the aggregate number of
        shares of Warrant Stock which may at such time be purchased upon
        exercise of this Warrant, after giving effect to all prior adjustments
        and increases to such number made or required to be made under the terms
        hereof.

               "Warrant Stock" means Common Stock issuable upon exercise of any
        Warrant or Warrants or otherwise issuable pursuant to any Warrant or
        Warrants.

        8.     Other Notices.  In case at any time:

                      (A)    the Issuer shall make any distributions to the
                             holders of Common Stock; or

                      (B)    the Issuer shall authorize the granting to all
                             holders of its Common Stock of rights to subscribe
                             for or purchase any shares of Capital Stock of any
                             class or of any Common Stock Equivalents or
                             Convertible Securities or other rights; or

                                      -14-
<PAGE>   15

                      (C)    there shall be any reclassification of the Capital
                             Stock of the Issuer; or

                      (D)    there shall be any capital reorganization by the
                             Issuer; or

                      (E)    there shall be any (i) consolidation or merger
                             involving the Issuer or (ii) sale, transfer or
                             other disposition of all or substantially all of
                             the Issuer's property, assets or business (except a
                             merger or other reorganization in which the Issuer
                             shall be the surviving corporation and its shares
                             of Capital Stock shall continue to be outstanding
                             and unchanged and except a consolidation, merger,
                             sale, transfer or other disposition involving a
                             wholly-owned Subsidiary); or

                      (F)    there shall be a voluntary or involuntary
                             dissolution, liquidation or winding-up of the
                             Issuer or any partial liquidation of the Issuer or
                             distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer shall close or a record shall
be taken for such dividend, distribution or subscription rights or (ii) such
reorganization, reclassification, consolidation, merger, disposition,
dissolution, liquidation or winding-up, as the case may be, shall take place.
Such notice also shall specify the date as of which the holders of Common Stock
of record shall participate in such dividend, distribution or subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, disposition, dissolution, liquidation
or winding-up, as the case may be. Such notice shall be given at least twenty
(20) days prior to the action in question and not less than twenty (20) days
prior to the record date or the date on which the Issuer's transfer books are
closed in respect thereto. The Issuer shall give to the Holder notice of all
meetings and actions by written consent of its stockholders, at the same time in
the same manner as notice of any meetings of stockholders is required to be
given to stockholders who do not waive such notice (or, if such actions require
no notice, then two (2) Trading Days written notice thereof describing the
matters upon which action is to be taken). The Holder shall have the right to
send two representatives selected by it to each meeting of stockholders, who
shall be permitted to attend, but not vote at, such meeting of stockholders and
any adjournments thereof. This Warrant entitles the Holder to receive, upon
request, copies of all financial and other information distributed or required
to be distributed to the holders of the Common Stock.

        9. Amendment and Waiver. Any term, covenant, agreement or condition in
this Warrant may be amended, or compliance therewith may be waived (either
generally or in a particular instance and either retroactively or
prospectively), by a written instrument or written instruments executed by the
Issuer and the Majority Holders; provided, however, that no such amendment or
waiver shall reduce the Warrant Share Number, increase the Warrant Price,
shorten the period during which this Warrant may be exercised or modify any
provision of this Section 9 without the consent of the Holder of this Warrant.

                                      -15-
<PAGE>   16

        10. Governing Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW. THIS WARRANT SHALL NOT BE INTERPRETED OR
CONSTRUED WITH ANY PRESUMPTION AGAINST THE PARTY CAUSING THIS WARRANT TO BE
DRAFTED.

        11. Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern standard time,
on a Trading Day, (ii) the Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile telephone
number specified for notice later than 5:00 p.m., eastern standard time, on any
date and earlier than 11:59 p.m., eastern standard time, on such date, (iii) the
Trading Day following the date of mailing, if sent by nationally recognized
overnight courier service or (iv) actual receipt by the party to whom such
notice is required to be given. The addresses for such communications shall be
with respect to the Holder of this Warrant or of Warrant Stock issued pursuant
hereto, addressed to such Holder at its last known address or facsimile number
appearing on the books of the Issuer maintained for such purposes, or with
respect to the Issuer, addressed to:

               ReSourcePhoenix.com
               2401 Kerner Boulevard
               San Rafael, CA  94901
               Telephone Number: (415) 485-4600
               Facsimile Number:  (510) 263-2495
               Attention: Corey West

        or to such other address or addresses or facsimile number or numbers as
any such party may most recently have designated in writing to the other parties
hereto by such notice. Copies of notices to the Issuer shall be sent to: Wilson
Sonsini Goodrich & Rosati, 650 Page Mill Rd., Palo Alto, CA 94304, Attention:
Steven V. Bernard, Esq., facsimile no.: (650) 493-6811. Copies of notices to the
Holder shall be sent to: Parker Chapin LLP, 405 Lexington Avenue, New York, New
York 10174, Attention: Christopher S. Auguste, Esq., facsimile no.: (212)
704-6288.

        12. Warrant Agent. The Issuer may, by written notice to each Holder of
this Warrant, appoint an agent having an office in New York, New York for the
purpose of issuing shares of Warrant Stock on the exercise of this Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to
subsection (d) of Section 3 hereof, or any of the foregoing, and thereafter any
such issuance, exchange or replacement, as the case may be, shall be made at
such office by such agent.

        13. Remedies. The Issuer stipulates that the remedies at law of the
Holder of this Warrant in the event of any default or threatened default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that, to the

                                      -16-
<PAGE>   17

fullest extent permitted by law, such terms may be specifically enforced by a
decree for the specific performance of any agreement contained herein or by an
injunction against a violation of any of the terms hereof or otherwise.

        14. Successors and Assigns. This Warrant and the rights evidenced hereby
shall inure to the benefit of and be binding upon the successors and assigns of
the Issuer, the Holder hereof and (to the extent provided herein) the Holders of
Warrant Stock issued pursuant hereto, and shall be enforceable by any such
party.

        15. Modification and Severability. If, in any action before any court or
agency legally empowered to enforce any provision contained herein, any
provision hereof is found to be unenforceable, then such provision shall be
deemed modified to the extent necessary to make it enforceable by such court or
agency. If any such provision is not enforceable as set forth in the preceding
sentence, the unenforceability of such provision shall not affect the other
provisions of this Warrant, but this Warrant shall be construed as if such
unenforceable provision had never been contained herein.

        16. Headings. The headings of the Sections of this Warrant are for
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -17-
<PAGE>   18

        IN WITNESS WHEREOF, the Issuer has executed this Warrant as of the day
and year first above written.

                                             RESOURCEPHOENIX.COM

                                             By: /s/ W. Corey West
                                                --------------------------------
                                                Name: W. Corey West
                                                Title: President and Chief
                                                       Operating Officer

                                      -18-
<PAGE>   19

                                  EXERCISE FORM

        [NAME OF ISSUER]

        The undersigned _______________, pursuant to the provisions of the
within Warrant, hereby elects to purchase _____ shares of Common Stock of
___________________ covered by the within Warrant.

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

                                            Address
                                                   -----------------------------

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

                                   ASSIGNMENT

        FOR VALUE RECEIVED, _________________ hereby sells, assigns and
transfers unto __________________ the within Warrant and all rights evidenced
thereby and does irrevocably constitute and appoint _____________, attorney, to
transfer the said Warrant on the books of the within named corporation.

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

                                            Address
                                                   -----------------------------

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

                               PARTIAL ASSIGNMENT

        FOR VALUE RECEIVED, _________________ hereby sells, assigns and
transfers unto __________________ the right to purchase _________ shares of
Warrant Stock evidenced by the within Warrant together with all rights therein,
and does irrevocably constitute and appoint ___________________, attorney, to
transfer that part of the said Warrant on the books of the within named
corporation.

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

                                            Address
                                                   -----------------------------

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

                           FOR USE BY THE ISSUER ONLY:

        This Warrant No. W-__ canceled (or transferred or exchanged) this _____
day of ___________, _____, shares of Common Stock issued therefor in the name of
_______________, Warrant No. W-__ issued for ____ shares of Common Stock in the
name of _______________.

                                      -19-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]