Document:

Exhibit 4(a)

                           CAPITA RESEARCH GROUP, INC.

                             1999 STOCK OPTION PLAN

1.  PURPOSES OF PLAN.  The  purposes  of this Plan,  which shall be known as the
Capita Research Group,  Inc. 1999 Stock Option Plan and is hereinafter  referred
to as the "Plan," are (i) to provide  incentives for key  employees,  directors,
consultants and other individuals  providing  services to CAPITA RESEARCH GROUP,
INC.,  (the  "Company")  and its subsidiary or parent  corporations  (within the
respective meanings of Section 424(f) and 424(e) of the Internal Revenue Code of
1986,  as amended  (the  "Code"),  and  referred to herein as  "Subsidiary"  and
"Parent,"  respectively,  and such Parent and each  Subsidiary  are  referred to
herein  individually as an "Affiliate"  and  collectively  as  "Affiliates")  by
encouraging their ownership of the common stock, $.001 par value, of the Company
(the  "Stock")  and (ii) to aid the  Company in  retaining  such key  employees,
directors,  consultants and other  individuals  upon whose efforts the Company's
success  and future  growth  depends  and in  attracting  other such  employees,
directors, consultants and individuals.

2. ADMINSTRATION.  The Plan shall be administered by the Compensation  Committee
of the  Board of  Directors  or a  subcommittee  of the  Compensation  Committee
appointed by the Compensation  Committee as hereinafter  provided (the committee
or  subcommittee  administering  the  Plan  is  hereinafter  referred  to as the
"Committee").  For purposes of  administration,  the  Committee,  subject to the
terms of the Plan,  shall have plenary  authority  to  establish  such rules and
regulations,  to make such determinations and interpretations,  and to take such
other   administrative   actions  as  it  deems  necessary  or  advisable.   All
determinations  and  interpretations  made  by the  Committee  shall  be  final,
conclusive  and binding on all  persons,  including  Optionees  (as  hereinafter
defined) and their legal representatives and beneficiaries.

                  The  Committee  shall consist of not fewer than two members of
the Board of Directors.  Unless otherwise  determined by the Board of Directors,
all  members  of the  Board of  Directors  who serve on the  Committee  shall be
"Non-Employee Directors" (as defined in Rule 16b-3 under the Securities Exchange
Act of  1934,  as  amended  and  "outside  directors"  as  defined  in  Treasury
Regulation ss.1.162-27(e)(3).  The Compensation Committee shall designate one of
the members of the  Committee  as its  Chairman.  The  Committee  shall hold its
meetings at such times and places as it may determine. A majority of its members
shall constitute a quorum.  All determinations of the committee shall be made by
a majority of its members. Any decision or determination  reduced to writing and
signed by all members shall be as effective as if it had been made by a majority
vote at a meeting duly called and held.  The  Committee  may appoint a secretary
(who need not be a member of the Committee). No member of the Committee shall be
liable for any act or omission  with respect to his service on the  Committee if
he acts in good  faith and in a manner he  reasonably  believes  to be in or not
opposed to the best interests of the Company.

3. STOCK  AVAILABLE FOR OPTIONS.  There shall be available for options under the
Plan a total of 2,500,000 shares of Stock,  subject to any adjustments which may

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be made  pursuant to Section 5(f0  hereof.  Shares of Stock used for purposes of
the Plan may be either  authorized  and unissued  shares,  or previously  issued
shares held in the treasury of the Company,  or both. Shares of Stock covered by
options, which have terminated or expired prior to exercise,  shall be available
for  further  options  hereunder.  The  maximum  number of options  which may be
granted to any person under the Plan during any fiscal year of the Company shall
not exceed 1,000,000 shares.

4.  ELIGIBILITY.  Options  under the Plan may be granted to key employees of the
Company or any Affiliate,  including officers or directors of the Company or any
Affiliate,  and to consultants and other individuals  providing  services to the
Company or any Affiliate  (each such  grantee,  an  "Optionee").  Options may be
granted to eligible  individuals  whether or not they hold or have held  options
previously  granted  under  the Plan or  otherwise  granted  or  assumed  by the
Company.  In selecting  individuals  for options,  the  committee  may take into
consideration  any factors it may deem  relevant,  including its estimate of the
individual's  present and potential  contributions to the success of the Company
and its Affiliates.  Service as an employee,  director, officer or consultant of
or to the Company or any Affiliate  shall be considered  employment for purposes
of the Plan (and the period of such service  shall be  considered  the period of
employment for purposes of Section 5(d) of this Plan);  provided,  however, that
incentive  stock options may be granted under the plan only to an individual who
is an  "employee"  (as  such  term is used in  Section  422 of the  Code) of the
Company or any Affiliate.

5.       TERMS  AND  CONDITIONS  OF  OPTIONS.   The  Committee   shall,  in  its
discretion,  prescribe  the terms and  conditions  of the  options to be granted
hereunder, which terms and conditions need not be the same in each case, subject
to the following:

(a)      Option  Price.  The price at which  each  share of Stock  covered by an
         option  granted under the Plan may be purchased  shall not be less than
         the Market Value (as defined in Section 5(c) hereof) per share of Stock
         on the date of grant of the option.  The date of the grant of an option
         shall  be the  date  specified  by the  Committee  in its  grant of the
         option.

(b)      Option  Period.  The period for exercise of an option shall in no event
         be more  than ten years  from the date of grant,  or in the case of any
         option  intended  to  be  an  incentive  stock  option  granted  to  an
         individual owning, on the date of grant, stock possessing more than 10%
         of the  total  combined  voting  power of all  classes  of stock of the
         Company of any Parent or Subsidiary, more than five years from the date
         of grant.  Options may, in the  discretion  of the  Committee,  be made
         exercisable in  installments  during the option period.  Any shares not
         purchased  on  any  applicable   installment   date  may  be  purchased
         thereafter at any time before the expiration of the option period.

(c)      Exercise of Options. In order to exercise an option, the Optionee shall
         deliver to the Company  written notice  specifying the number of shares
         of Stock to be  purchased,  together  with cash or a certified  or bank
         cashier's  check payable to the order of the Company in the full amount
         of the  purchase  price  therefor;  provided  that,  for the purpose of
         assisting an Optionee to exercise an option, the Company may make loans
         to the Optionee or guarantee loans made by third parties to the

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         Optionee,  on such terms and  conditions  as the Board of Directors may
         authorize; and provided further that such purchase price may be paid in
         shares of Stock owned by the Optionee having an aggregate  Market Value
         of the date of exercise equal to the aggregate  purchase price, or in a
         combination  of cash and Stock.  For  purposes of the Plan,  the Market
         Value per share of Stock  shall be the last sale price  regular  way on
         the date of  reference,  or, in case no sale takes  place on such date,
         the average of the closing high bid and low asked  prices  regular way,
         in either case on the principal national  securities  exchange on which
         the Stock is  listed or  admitted  to  trading,  or if the Stock is not
         listed or admitted to trading on any national securities exchange,  the
         last sale price reported on the National  Market System of the National
         Association of Securities Dealers Automated Quotation System ("NASDAQ")
         on such date,  or the last sale price  reported on the NASDAQ Small Cap
         Market on such date,  or the  average of the  closing  high bid and low
         asked prices in the over-the-counter  market on such date, whichever is
         applicable, or if there are no such prices reported on NASDAQ or in the
         over-the-counter  market on such date, as furnished to the Committee by
         any New York Stock  Exchange  member  selected from time to time by the
         Committee for such purpose.  If there is no bid or asked price reported
         on any such date, the Market Value shall be determined by the Committee
         in accordance  with the regulations  promulgated  under Section 2031 of
         the Code, or by any other appropriate method selected by the Committee.
         If the Optionee so requests, shares of Stock purchased upon exercise of
         an option may be issued in the name of the Optionee or another  person.
         An Optionee  shall have none of the rights of a  stockholder  until the
         shares of Stock are issued to him.

(d)      Effect of  Termination  of  Employment.  An option may not be exercised
         after the Optionee has ceased to be in the employ of the Company or any
         Affiliate, except in the following circumstances:

(i)               If the  Optionee's  employment  is terminated by action of the
                  Company  or  an  Affiliate,  or by  reason  of  disability  or
                  retirement under any retirement plan maintained by the Company
                  of any Affiliate,  the option may be exercised by the Optionee
                  within three months after such termination, but only as to any
                  shares  exercisable  on the date of  Optionee's  employment so
                  terminates;

(ii)              In the event of the  death of the  Optionee  during  the three
                  month period after  termination of employment  covered covered
                  by (i)  above,  the  person or  persons to whom his rights are
                  transferred  by will or the laws of descent  and  distribution
                  shall  have a period of one year from the date of his death to
                  exercise any options which were exercisable by the Optionee at
                  the time of his death; and

(iii)             In the event of the death of the Optionee while employed,  the
                  option shall  thereupon  become  exercisable  in full, and the
                  person  or   persons  to  whom  the   Optionee's   rights  are
                  transferred  by will or the laws of descent  and  distribution
                  shall  have  a  period  of  one  year  from  the  date  of the
                  Optionee's  death to exercise such option.  The  provisions of
                  the foregoing sentence shall apply to any outstanding  options
                  which are incentive  stock options to the extent  permitted by
                  Section  422(d) of the Code and such  outstanding  options  in
                  excess thereof shall,  immediately  upon the occurrence of the

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                 event described in the preceding  sentence,  be treated for all
                  purposes of the Plan as  nonstatutory  stock options and shall
                  be  immediately   exercisable  as  such  as  provided  in  the
                  foregoing   sentence.   In  no  event   shall  any  option  be
                  exercisable  more  than  ten  years  from  the  date of  grant
                  thereof. Nothing in the Plan or in any option granted pursuant
                  to the Plan (in the  absence  of an express  provision  to the
                  contrary) shall confer on any individual any right to continue
                  in the employ of the Company or any  Affiliate or interfere in
                  any way with the  right of the  Company  or any  Affiliate  to
                  terminate his employment at any time.

(e)      Limitation  on  Transferability  of Options.  Except as provided in the
         Section 5(e), during the lifetime of an Optionee,  options held by such
         Optionee  shall  be  exercisable  only by him and no  option  shall  be
         transferable   other  than  by  will  or  the  laws  of   descent   and
         distribution. The Committee may, in its discretion, provide that during
         the  lifetime of an  Optionee,  options  held by such  Optionee  may be
         transferred  to or for the benefit of a member of his immediate  family
         or to a charitable  organization  exempt from income tax under  Section
         501(c)(3) of the code. For purposes hereof, the term "immediate family"
         of an Optionee  shall mean such  Optionee's  spouse and children  (both
         natural  and  adoptive),  and  the  direct  lineal  descendants  of his
         children.

(f)      Adjustments  for  Change in Stock  Subject  to Plan.  In the event of a
         reorganization,   recapitalization,   stock  split,   stock   dividend,
         combination of shares, merger,  consolidation,  rights offering, or any
         other change in the corporate  structure of shares of the Company,  the
         Committee shall make such adjustments,  if any, as it deems appropriate
         in the number and kind of shares subject to the Plan, in the number and
         kind of shares covered by outstanding  options,  or in the option price
         per share,  or both,  and,  in the case of a merger,  consolidation  or
         other  transaction  pursuant to which the Company is not the  surviving
         corporation or pursuant to which the holders of outstanding Stock shall
         receive in exchange  therefor  shares of capital stock of the surviving
         corporation  or  another  corporation,  the  Committee  may  require an
         Optionee to exchange  options granted under the Plan for options issued
         by the surviving corporation or such other corporation.

(g)      Acceleration  of  Exercisability  of Options Upon Occurrence of Certain
         Events. The Committee may, in its discretion provide in the case of any
         option  granted under the Plan that,  in connection  with any merger or
         consolidation  which results in the holders of the  outstanding  voting
         securities of the company (determined  immediately prior to such merger
         or consolidation) owning less than a majority of the outstanding voting
         securities  of  the  surviving  corporation   (determined   immediately
         following such merger or consolidation), or any sale or transfer by the
         Company of all or substantially all its or any tender offer or exchange
         offer for or the acquisition,  directly or indirectly, by any person or
         group of all or a majority of the then outstanding voting securities of
         the  Company,  such option shall  become  exercisable  in full or part,
         notwithstanding  any other  provision of the Plan or of any outstanding
         options granted thereunder, on and after (i) the fifteenth day prior to
         the effective  date of such merger,  consolidation,  sale,  transfer or
         acquisition  or (ii) the date of  commencement  of such tender offer or
         exchange  offer,  as the case may be. The  provisions  of the foregoing
         sentence  shall apply to any  outstanding  options  which are incentive
         stock options to the extent permitted by Section 422(d) of the Code and
         such outstanding  options in excess thereof shall  immediately upon the
         occurrence  of  the  event  described  in  clause  (i) or  (ii)  of the

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         foregoing  sentence,  be  treated  for  all  purposes  of the  plan  as
         nonstatutory stock options and shall be immediately exercisable as such
         as provided in the foregoing  sentence.  Notwithstanding the foregoing,
         in no  event  shall  any  option  be  exercisable  after  the  date  of
         termination of the exercise period of such option specified in Sections
         5(b) and 5(d).

(h)      Registration, Listing and Qualification of Shares of Stock. Each option
         shall be  subject to the  requirement  that if at any time the Board of
         Directors   shall   determine   that  the   registration,   listing  or
         qualification   of  the  shares  of  Stock  covered  thereby  upon  any
         securities  exchange  or under any federal or state law, or the consent
         or  approval  of any  governmental  regulatory  body  is  necessary  or
         desirable as a condition  of, or in  connection  with,  the granting of
         such  option or the  purchase  of shares of Stock  thereunder,  no such
         option may be exercised  unless and until such  registration,  listing,
         qualification, consent or approval shall have been effected or obtained
         free of any conditions  not  acceptable to the Board of Directors.  The
         Company may require  that any person  exercising  an option  shall make
         such  representations and agreements and furnish such information as it
         deems  appropriate to assure compliance with the foregoing or any other
         applicable legal requirement.

(i)      Other Terms and  Conditions.  The Committee may impose such other terms
         and conditions, not inconsistent with the terms hereof, on the grant or
         exercise of options, as it deems advisable.

6. Additional  Provisions  Applicable to Incentive Stock Options.  The Committee
may, in its discretion, grant options under the Plan to eligible employees which
constitute  "incentive  stock options"  within the meaning of Section 422 of the
Code; provided,  however,  that (a) the aggregate Market Value of the Stock with
respect to which  incentive  stock options are exercisable for the first time by
the Optionee  during any calendar year shall not exceed the limitation set forth
in Section  422(d) of the Code;  (b) if the  Optionee  owns on the date of grant
securities  possessing  more than 10% of the total combined  voting power of all
classes of  securities of the Company or of any  Affiliate,  the price per share
shall not be less than 110% of the  Market  Value per share on the date of grant
and (c) Section 5(d)(ii) hereof shall not apply to any incentive stock option.

7.  Amendment  and  Termination.  Unless  the Plan shall  theretofore  have been
terminated as hereinafter  provided,  the Plan shall terminate on, and no option
shall be granted hereunder after December 31, 2009; provided,  however, that the
Board of Directors may at any time prior to that date  terminate  the Plan.  The
Board of Directors may at any time amend the Plan or any outstanding options. No
termination  or amendment  of the Plan may,  without the consent of an Optionee,
adversely  affect the  rights of such  Optionee  under any  option  held by such
Optionee.

8. Stockholder  Approval of Plan. The establishment of the Plan shall be subject
to approval by a majority of the votes cast thereon by the  stockholders  of the
Company at a meeting of stockholders duly called and held for such purpose or by
a method and in a degree that would be treated as adequate  under the applicable
law of the Company's  state of  incorporation,  and no option granted  hereunder
shall be exercisable prior to such approval.

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9.  Withholding.  It shall be a condition  to the  obligation  of the Company to
issue  shares of Stock upon  exercise of an option,  that the  Optionee  (or any
beneficiary,  transferee or person  entitled to act under  Sections 5(d) or 5(e)
hereof) pay to the Company,  upon its demand, such amount as may be requested by
the Company for the purpose of  satisfying  any  liability to withhold  federal,
state or local income or other taxes.  If the amount  requested is not paid, the
Company may refuse to issue such shares of Stock.

10. Issuance of Certification;  Legends.  The Company may endorse such legend or
legends upon the certificates for shares of Stock issued upon the exercise of an
option granted hereunder and may issue such "stop transfer"  instructions to its
transfer  agent in respect of such  shares as, in its  absolute  discretion,  it
determines to be necessary or appropriate.

11. Other Actions. Nothing contained in the Plan shall be construed to limit the
authority of the Company to exercise its corporate rights and powers,  including
but not by way of  limitation,  the  right of the  Company  to  grant or  assume
options for proper corporate  purposes other than under the Plan with respect to
any employee or other person, firm, corporation or association.

                                        6Exhibit 4(b)

THE WARRANTS  REPRESENTED BY THIS CERTIFICATE AND THE COMMON STOCK ISSUABLE UPON
EXERCISE OF SUCH WARRANTS HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF
1933 AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT.

W1                             WARRANT CERTIFICATE

                          300,000 Warrants to Purchase

                                  Common Stock

                            Void After August 5, 2002

                           CAPITA RESEARCH GROUP, INC.

              (Incorporated under the laws of the State of Nevada)

                  This is to certify that, for value received,  Jim Salim is the
owner (the "Owner") of the number of Warrants set forth above,  each of which is
nontransferable  and entitles the Owner to purchase from CAPITA  RESEARCH GROUP,
INC.  (herein  called the  "Corporation"),  at any time  (except as  hereinafter
provided)  before 5 P.M.  (New York time) on August 5, 2002,  one Stock Unit (as
hereinafter  defined) at a purchase  price of $.25  (herein  called the "Warrant
Price"). For purposes of this Warrant Certificate, a Stock Unit shall consist of
one fully paid and non-assessable share of common stock, $.001 par value (herein
called the "Common Stock"), of the Corporation,  as such stock is constituted on
August 5, 1999, subject to adjustment as hereinafter set forth.

                  Subject to the provisions hereof, the Warrants  represented by
this  Warrant  Certificate  may be exercised by the Owner in whole or in part by
surrender of this Warrant  Certificate at the principal executive offices of the
Corporation with the form of election to subscribe attached hereto duly executed
and with payment in full to the Corporation of the Warrant Price for each of the
Stock Units so purchased. Payment of such Warrant Price shall be made in cash or
by certified or official bank check. Thereupon,  the Warrants shall be deemed to
have been  exercised and the Owner shall become a holder of record of the shares
of  Common  Stock  comprising  the  Stock  Units so  purchased  (or of the other
securities  or property to which the Owner is entitled  upon such  exercise) for
all  purposes,  and  certificates  for such shares of Common  Stock so purchased
shall be  delivered  to the Owner  within a  reasonable  time after the Warrants
shall have been  exercised  as set forth  hereinabove.  If only a portion of the
Warrants  shall be  exercised,  the Owner shall be entitled to receive a similar
warrant certificate of like tenor and date covering the number of Warrants which
shall not have been exercised, unless such Warrants shall have expired.

                  The Corporation covenants and agrees that all shares of Common
Stock which may be issued upon the  exercise of the rights  represented  by this
Warrant Certificate will, upon issuance, be validly issued, fully paid and

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non-assessable  and free from all taxes,  liens and charges  with respect to the
issue  thereof   (other  than  taxes  in  respect  of  any  transfer   occurring
contemporaneously with such issue). The Corporation further covenants and agrees
that,  during the period within which the Warrants  represented  by this Warrant
Certificate may be exercised,  the Corporation will at all times have authorized
and  reserved a  sufficient  number of shares of Common Stock to provide for the
exercise of the Warrants  represented by this Warrant  Certificate,  and will at
its expense  expeditiously  upon each such reservation of shares of Common Stock
use its best  efforts to procure  the  listing  thereof  (subject to issuance or
notice of  issuance)  on all stock  exchanges  on which the Common Stock is then
listed.  The rights of the Owner shall be subject to the following further terms
and conditions:

                  1.1.(a)  The  number of shares of Common  Stock  comprising  a
Stock Unit shall be subject to adjustment from time to time as follows:

                      (i)  If the number of shares of Common  Stock  outstanding
at any time after the date hereof is  increased by a stock  dividend  payable in
shares of Common Stock or by a subdivision  or split-up of Common  Stock,  then,
immediately  following the record date fixed for the determination of holders of
Common Stock entitled to receive such stock  dividend,  subdivision or split-up,
the  number  of  shares  of  Common  Stock  comprising  a Stock  Unit  shall  be
appropriately increased so that the number of shares of Common Stock issuable on
exercise of each Warrant  shall be increased in  proportion  to such increase of
outstanding shares.

                    (ii) If the number of shares of Common Stock  outstanding at
any time after the date hereof is decreased by a combination of the  outstanding
shares of Common  Stock,  then,  immediately  following the record date for such
combination,  the number of shares of Common Stock comprising a Stock Unit shall
be appropriately decreased so that the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares.

                   (iii) In case the  Corporation  shall declare a cash dividend
upon the Common Stock payable  otherwise  than out of earnings or earned surplus
legally  available  therefor  under the laws of the State of  Delaware  or shall
distribute  to holders of Common Stock  shares of its capital  stock (other than
Common  Stock),  stock  or  other  securities  of other  persons,  evidences  of
indebtedness issued by the Corporation or other persons,  assets (excluding cash
dividends)  or options or rights  (excluding  options to purchase  and rights to
subscribe for Common Stock or other  securities of the  Corporation  convertible
into or  exchangeable  for Common Stock),  then, in each such case,  immediately
following the record date fixed for the  determination  of the holders of Common
Stock entitled to receive such dividend or distribution, the number of shares of
Common Stock comprising a Stock Unit thereafter shall be adjusted by multiplying
such number by a fraction of which the  denominator  shall be an amount equal to
the  remainder of (x) the  aggregate  Current  Market  Price of all  outstanding
shares of Common Stock less (y) the  aggregate  amount of such cash  dividend or
the aggregate fair market value (as determined by the Board of Directors,  whose
determination  shall be  conclusive)  of the  stock,  securities,  evidences  of
indebtedness,  assets, options or rights so distributed, as the case may be, and
of which the numerator shall be the aggregate Current Market Price of all

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outstanding  shares of Common Stock.  Such adjustment  shall be made on the date
such dividend or distribution is made, and shall become effective at the opening
of  business  on the  business  day  next  following  the  record  date  for the
determination of stockholders entitled to such dividend or distribution.

                   (iv) In case,  at any time  after  the  date  hereof,  of any
capital reorganization,  or any reclassification of the stock of the Corporation
(other  than a change  in par value or from par value to no par value or from no
par  value to par  value  or as a result  of a stock  dividend  or  subdivision,
split-up  or  combination  of  shares),  or the  consolidation  or merger of the
Corporation with or into another person (other than a consolidation or merger in
which the Corporation is the continuing corporation and which does not result in
any change in the Common  Stock) or of the sale or other  disposition  of all or
substantially all the properties and assets of the Corporation as an entirety to
any   other   person,   each   Warrant   shall   after   such    reorganization,
reclassification,   consolidation,   merger,   sale  or  other   disposition  be
exercisable  for the kind and number of shares of stock or other  securities  or
property  of  the  Corporation  or  of  the  corporation   resulting  from  such
consolidation  or surviving  such merger or to which such  properties and assets
shall have been sold or  otherwise  disposed  to which the Owner would have been
entitled  if  immediately  prior  to  such   reorganization,   reclassification,
consolidation,  merger,  sale or other disposition he had exercised such Warrant
for Common Stock.  The provisions of this Section 1.1 shall  similarly  apply to
successive reorganizations, reclassifications, consolidations, mergers, sales or
other dispositions.

                   (v) All  calculations  under this paragraph (a) shall be made
to the nearest cent or to the nearest one hundredth  (1/100) of a share,  as the
case may be.

                   (vi) For the  purpose  of any  computation  pursuant  to this
paragraph (a) or Section 1.2, the Current  Market Price at any date of one share
of Common  Stock shall be deemed to be the average of the daily  closing  prices
for Common  Stock for the 30  consecutive  business  days ending no more than 15
business  days before the day in question (as  adjusted for any stock  dividend,
split,   combination  or  reclassification  that  took  effect  during  such  30
business-day  period). The closing price for each day shall be the last reported
sale price  regular  way or, in case no such  reported  sales take place on such
day,  the average of the last  reported  bid and asked  prices  regular  way, in
either case on the principal  national  securities  exchange on which the Common
Stock is listed or  admitted  to  trading  or as quoted on the  Nasdaq  National
Market System or Nasdaq SmallCap Market, or if not listed or admitted to trading
on any  national  securities  exchange or so quoted,  the average of the highest
reported  bid and lowest  reported  asked  prices as  furnished  by The National
Quotation Bureau Incorporated,  all as adjusted;  provided, however, that if the
Common  Stock is not traded in such  manner that the  quotations  referred to in
this clause (vi) are available for the period required hereunder, Current Market
Price  shall be deemed to be the Share Net Asset  Value (as used herein the term
"Share  Net  Asset  Value"  shall  mean the  aggregate  net  asset  value of the
Corporation as shown on its most recent  available  balance sheet divided by the
outstanding  number of shares of Common Stock, each determined on the assumption
that the Warrants have been exercised).

                  (vii) In any case in which the  provisions  of this  paragraph
(a) shall require that an adjustment shall become effective  immediately after a
record date for an event, the Corporation may defer until the occurrence of such
event (x) issuing to the Owner with respect to any Warrant exercised after such

                                        9
<PAGE>

record date and before the occurrence of such event,  the  additional  shares of
Common Stock issuable upon such exercise by reason of the adjustment required by
such event over and above the shares of Common Stock issuable upon such exercise
before giving effect to such  adjustment  and (y) paying to the Owner any amount
in cash in lieu of a fractional  share of Common Stock  pursuant to Section 1.2;
provided, however, that the Corporation shall deliver to the Owner a due bill or
other  appropriate  instrument  evidencing  the  Owner's  right to receive  such
additional  shares,  and such cash,  upon the occurrence of the event  requiring
such adjustment.

                  (b) In the event the  Corporation  shall  propose  to take any
action of the types  described in clauses (i), (ii),  (iii) or (iv) of paragraph
(a) of this Section 1.1, the  Corporation  shall give notice to the Owner in the
manner set forth in Section 1.3,  which notice shall specify the record date, if
any,  with  respect to any such  action and the date on which such  action is to
take place.  Such notice shall also set forth such facts with respect thereto as
shall be  reasonably  necessary  to  indicate  the effect of such action (to the
extent  such  effect  may be known at the date of such  notice) on the number of
shares of Common Stock comprising a Stock Unit and the number,  kind or class of
shares or other securities or property which shall be deliverable or purchasable
upon the occurrence of such action or deliverable upon exercise of Warrants.  In
the case of any action  which would  require the fixing of a record  date,  such
notice  shall be given at least 20 days prior to the date so fixed,  and in case
of all other  action,  such notice  shall be given at least 30 days prior to the
taking of such  proposed  action.  Failure  to give such  notice,  or any defect
therein, shall not affect the legality or validity of any such action.

                  (c) In the event that at any time as a result of an adjustment
made  pursuant to  paragraph  (a) of this  Section  1.1 the Owner  shall  become
entitled  with respect to any Warrants  thereafter  surrendered  for exercise to
receive any shares of the Corporation or another  corporation  other than shares
of Common Stock, the provisions of this Section 1.1 and Section 1.2 with respect
to the Common Stock shall apply on like terms to any such other shares.

                  1.2. No fractional  share of Common Stock shall be issued upon
the exercise of Warrants,  but in lieu thereof the  Corporation  shall pay, upon
exercise in full of the Warrants represented by this Warrant Certificate, out of
funds  legally  available  therefor,  a  cash  adjustment  in  respect  of  such
fractional  share in an amount  equal to the same  fraction of the then  Current
Market Price.

                  1.3. The  Corporation  will,  within 120 days after the end of
each of its fiscal years, mail to the Owner, at the address of such holder shown
on the  books  of the  Corporation,  a  certificate  of the  independent  public
accountants  for the  Corporation (i) specifying the Share Price in effect as of
the end of such  fiscal  year and the number of shares of Common  Stock,  or the
kind and amount of any securities or property other than shares of Common Stock,
comprising a Stock Unit and (ii) setting  forth in  reasonable  detail the facts
requiring any adjustments made during such fiscal year.

                  2.1.  The  issue of any  stock or other  certificate  upon the
exercise  of the  Warrants  shall be made  without  charge  to the Owner for any
transfer or issuance tax in respect of the issue thereof.  The Corporation shall
not, however, be required to pay any tax which may be payable in respect of any

                                       10
<PAGE>

transfer  involved in the issue and delivery of any  certificate in a name other
than that of the Owner,  and the  Corporation  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  Corporation  the amount of such tax or
shall have  established to the satisfaction of the Corporation that such tax has
been paid.

                  2.2. This Warrant Certificate and the rights hereunder are not
transferable.  In addition,  the Warrants evidenced hereby may not be exercised,
and any shares of Common  Stock  issued  upon any  exercise  thereof  may not be
transferred,  unless, in the opinion of counsel, who shall be counsel reasonably
acceptable to the  Corporation,  such exercise or transfer,  as the case may be,
would not result in a violation of the provisions of the Securities Act of 1933.
The Owner and any holder of any shares of Common Stock  issued upon  exercise of
any such Warrants,  by taking or holding the same,  consents to and agrees to be
bound by the provisions of this Section 2.2.

                  2.3.  If this  Warrant  Certificate  shall  be  lost,  stolen,
mutilated or destroyed,  the Corporation  shall on such terms as to indemnify or
otherwise  protect the  Corporation  as the  Corporation  may in its  discretion
impose, issue a new warrant certificate of like denomination,  tenor and date as
the Warrant  Certificate so lost, stolen,  mutilated or destroyed.  Any such new
warrant certificate shall constitute an original  contractual  obligation of the
Corporation,  whether or not the allegedly lost, stolen,  mutilated or destroyed
Warrant Certificate shall be at any time enforceable by anyone.

                  2.4.  The  Corporation  may deem and  treat  the  Owner as the
absolute  owner of this  Warrant  Certificate  for all purposes and shall not be
affected by any notice to the contrary.

                  2.5.  This  Warrant  Certificate  and the  Warrants  evidenced
hereby  shall not  entitle  the  Owner to any  rights  of a  stockholder  of the
Corporation either at law or in equity, including, without limitation, the right
to  vote,  to  receive  dividends  or  other  distributions,   to  exercise  any
pre-emptive  rights or to receive any notice of meetings of  stockholders  or of
any other proceedings of the Corporation.

                  2.6. This Warrant Certificate,  in all events, shall be wholly
void and have no effect after 5 P.M. (New York time) on August 5, 2002.

                  2.7. In the event that one or more of the  provisions  of this
Warrant  Certificate  shall for any  reason be held to be  invalid,  illegal  or
unenforceable in any respect,  such invalidity,  illegality or  unenforceability
shall not affect  any other  provision  of this  Warrant  Certificate,  but this
Warrant  Certificate  shall  be  construed  as  if  such  invalid,   illegal  or
unenforceable provision had never been contained herein.

                  2.8.  This  Warrant  Certificate  shall  be  governed  by  and
construed in  accordance  with the laws of the State of New York  applicable  to
agreements made and to be entirely  performed  within such State,  except to the
extent of the mandatory  rules of the State of Nevada with respect to the formal
requisites for authorization of a security and rights and duties with respect to
register of transfer.

                                       11
<PAGE>

Dated:  August 5, 1999

                                            CAPITA RESEARCH GROUP, INC.

                                            By     /s/ David B. Hunter
                                                   -------------------
                                                   David B. Hunter

                                       12
<PAGE>

FORM OF EXERCISE
----------------

                (to be executed by the registered holder hereof)

                  The  undersigned   hereby  exercises  the  right  to  purchase
________ shares of common stock, $.001 par value (the "Common Stock"), of CAPITA
RESEARCH GROUP,  INC.  evidenced by the within Warrant  Certificate and herewith
makes  payment of the  purchase  price in full.  Kindly issue  certificates  for
shares of Common Stock in  accordance  with the  instructions  given below.  The
certificate for the unexercised  balance of the Warrants evidenced by the within
Warrant Certificate, if any, will be registered in the name of the undersigned.

Dated: ____________________, ____

Instructions for registration of stock

----------------------------------
           Name (please print)

Social Security or Other Identifying

Number:___________________________

Address:

----------------------------------
                     Street

----------------------------------
         City, State and Zip Code

                                       13

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