Document:

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                                                                     EXHIBIT 4.4

No. of Stock Units:  2,857,142                                  Warrant No. ____

                                FORM OF WARRANT

                          to Purchase Common Stock of

                             Read-Rite Corporation

THIS IS TO CERTIFY THAT Tyco Sigma Limited, a Burmuda company, or its registered
three (3) months following assigns, is entitled to purchase from Read-Rite
Corporation, a Delaware (hereinbelow called the "Company"), at any time on and
                                                 -------
after three (3) months following the Closing Date, but not later than 5:00 p.m.,
Pacific Standard time, on the date that is 365 days following the Closing Date
(the "Expiration Date"), Two Million Eight Hundred Fifty-Seven Thousand One
      ---------------
Hundred Forty-Two (2,857,142) Stock Units, in whole or in part, at a purchase
price per Stock Unit of $7.375, adjusted as provided below, all on the terms and
conditions hereinbelow provided.

This Warrant has been issued in accordance with a Purchase Agreement dated as of
the date hereof between the Company and Tyco Sigma Limited (the "Purchase
                                                                 --------
Agreement").  The Purchase Agreement contains registration rights and certain
---------
other rights of the Holder of this Warrant.  Capitalized terms used but not
otherwise defined herein have the meanings assigned to such terms in the
Purchase Agreement.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND ARE
"RESTRICTED SECURITIES" AS DEFINED IN RULE 144 PROMULGATED UNDER THE SECURITIES
ACT.  THE SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
DISTRIBUTED, EXCEPT (I) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT, (II) IN COMPLIANCE WITH RULE 144,
OR (III) PURSUANT TO AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE
SECURITIES THAT SUCH REGISTRATION OR COMPLIANCE IS NOT REQUIRED AS TO SUCH SALE,
OFFER OR DISTRIBUTION (UNLESS SUCH TRANSFER IS TO AN AFFILIATE OF THE HOLDER
HEREOF, IN WHICH CASE NO SUCH OPINION SHALL BE REQUIRED).

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          Section 1.  Certain Definitions.  As used in this Warrant, unless the
                      -------------------
context otherwise requires:

          "Affiliate" of any Person means a Person that directly or indirectly
           ---------
controls, or is controlled by, or is under common control with, such other
Person.  The term "control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise.

          "Appraised Value" shall mean the fair market value of all outstanding
           ---------------
shares of Common Stock (on a fully diluted basis including any fractional shares
and assuming the exercise in full of all then-outstanding options, warrants or
other rights to purchase shares of Common Stock that are then currently
exercisable at exercise prices less than the Current Market Price), as
determined by a written appraisal prepared by an appraiser acceptable to the
Company and the holders of Warrants evidencing a majority in number of the total
number of Stock Units at the time purchasable upon the exercise of all then
outstanding Warrants.  "Fair market value" is defined for this purpose as the
price in a single transaction determined on a going-concern basis that would be
agreed upon by the most likely hypothetical buyer for a 100% controlling
interest in the equity capital of the Company (on a fully diluted basis
including any fractional shares and assuming the exercise in full of all then-
outstanding options, warrants or other rights to purchase shares of Common Stock
that are then currently exercisable at exercise prices less than the Current
Market Price), with consideration given to the effect of a noncompete covenant
signed by the seller and employment agreements signed by key management
personnel of the Company (and of its subsidiaries), each extending for a period
of time considered sufficient by all parties to effect the transfer of goodwill
from the seller to the buyer and disregarding any discounts for nonmarketability
of Common Stock of the Company.  In the event that the Company and said holders
cannot, in good faith, agree upon an appraiser, then the Company, on the one
hand, and said holders, on the other hand, shall each select an appraiser, the
two appraisers so selected shall select a third appraiser who shall be directed
to prepare such a written appraisal (the "Appraisal") and the term Appraised
                                          ---------
Value shall mean the appraised value set forth in the Appraisal prepared in
accordance with this definition. The fees and expenses of any appraisers shall
be paid by the Company, except in the case where the valuation of any appraiser
who renders an Appraisal is within ten percent (10%) of the value originally
determined by the Board of Directors, in which case the holders shall pay the
fees and expenses of any appraisers.  In the event that the Company bears the
cost of the appraisal process, such cost shall be deemed an account payable of
the Company and shall be considered in the determination of the Appraised Value.

          "Board of Directors" shall mean either the board of directors of the
           ------------------
Company or any duly authorized committee of that board.

          "Business Day" shall mean any day other than a Saturday, Sunday or a
           ------------
day on which banks in the States of New York or California or in Bermuda are
required or permitted to close.

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          "Commission" shall mean the Securities and Exchange Commission and any
           ----------
other similar or successor agency of the federal government administering the
Securities Act and the Exchange Act.

          "Common Stock" shall mean the Company's authorized Common Stock,
           ------------
$.0001 par value per share, irrespective of class unless otherwise specified, as
constituted on the date of original issuance of this Warrant, and any stock into
which such Common Stock may thereafter be changed, and shall also include stock
of the Company of any other class, which is not preferred as to dividends or
assets over any other class of stock of the Company issued to the holders of
shares of stock upon any reclassification thereof.

          "Company" shall mean Read-Rite Corporation, a Delaware corporation.
           -------

          "Current Market Price" per share of Common Stock for the purposes of
           --------------------
any provision of this Warrant at the date herein specified, shall be deemed to
be the price determined pursuant to the first applicable of the following
methods:

               (i)   If the Common Stock is traded on a national securities
     exchange or is traded in the over-the-counter market, the Current Market
     Price per share of Common Stock shall be deemed to be the average of the
     daily market prices for 20 consecutive Business Days commencing 20 Business
     Days before such date.  The market price for each such Business Day shall
     be (a) if the Common Stock is traded on a national securities exchange or
     in the over-the-counter market, its last sale price on the preceding
     Business Day on such national securities exchange or over-the-counter
     market or, if there was no sale on that day, the last sale price on the
     next preceding Business Day on which there was a sale, on such national
     securities exchange or over-the-counter market or (b) if the Common Stock
     is quoted on The Nasdaq Stock Market, Inc. ("Nasdaq"), the last sale price
                                                  ------
     reported on Nasdaq on the preceding Business Day or, if the Common Stock is
     an issue for which last sale prices are not reported on Nasdaq, the closing
     bid quotation on such day, but, in each of the next preceding two cases, if
     the relevant Nasdaq price or quotation did not exist on such day, then the
     price or quotation on the next preceding Business Day in which there was
     such a price or quotation.

               (ii)  If the Current Market Price per share of Common Stock
     cannot be ascertained by any of the methods set forth in paragraph (i)
     immediately above, the Current Market Price per share of Common Stock shall
     be deemed to be the price equal to the quotient determined by dividing the
     Appraised Value by the number of outstanding shares of Common Stock (on a
     fully diluted basis including any fractional shares and assuming the
     exercise in full of all then-outstanding options, warrants or other rights
     to purchase shares of Common Stock that are then currently exercisable at
     exercise prices equal to or less than the Current Market Price).

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          "Current Warrant Price" per share of Common Stock, for the purpose of
           ---------------------
any provision of this Warrant at the date herein specified, shall mean the
amount equal to the quotient resulting from dividing the Exercise Price in
effect on such date by the number of shares (including any fractional share) of
Common Stock comprising a Stock Unit on such date.

          "Exchange Act" shall mean the Securities and Exchange Act of 1934, as
           ------------
amended, and any similar or successor federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
any applicable time.

          "Exercise Price" shall mean the purchase price per Stock Unit as set
           --------------
forth on the first page of this Warrant on the Closing Date and thereafter shall
mean such dollar amount as shall result from the adjustments specified in
Section 4.

          "Holder" means, initially, Tyco Sigma Limited, a Bermuda company, and
           ------
thereafter any Person that is or Persons that are the registered holder(s) of
the Warrant or Warrant Stock as registered on the books of the Company.

          "Nonpreferred Stock" shall mean the Common Stock and shall also
           ------------------
include stock of the Company of any other class which is not preferred as to
dividends or assets over any other class of stock of the Company and which is
not subject to redemption.

          "Person" shall include an individual, a corporation, an association, a
           ------
partnership, a limited liability company, a trust or estate, a government,
foreign or domestic, and any agency or political subdivision thereof, or any
other entity.

          "Purchase Agreement" has the meaning assigned to such term in the
           ------------------
second paragraph of this Warrant.

          "Restricted Certificate" shall mean a certificate for Common Stock or
           ----------------------
a Warrant bearing the restrictive legend set forth in the preamble.

          "Restricted Securities" shall mean Restricted Stock and the Restricted
           ---------------------
Warrant.

          "Restricted Stock" shall mean Common Stock evidenced by a Restricted
           ----------------
Certificate.

          "Restricted Warrant" shall mean a Warrant evidenced by a Restricted
           ------------------
Certificate.

          "Securities" shall mean the Warrant issued to the Holder, and the
           ----------
certificates and other instruments from time to time evidencing the same.

          "Securities Act" shall mean the Securities Act of 1933, as amended,
           --------------
and any similar or successor federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect at any applicable
time.

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          "Stock Unit" shall constitute one share of Common Stock, as such
           ----------
Common Stock was constituted on the date hereof and thereafter shall constitute
such number of shares (including any fractional shares) of Common Stock as shall
result from the adjustments specified in Section 4.

          "Voting Stock" shall mean any equity security entitling the holder of
           ------------
such security to vote at meetings of shareholders except an equity security
which entitles the holder of such security to vote only upon the occurrence of
some contingency, unless that contingency shall have occurred and be continuing.

          "Warrant" shall mean this Warrant to purchase up to an aggregate of
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2,857,142 Stock Units initially issued to Tyco Sigma Limited, a Bermuda company,
and all Warrants issued upon transfer, division or combination of, or in
substitution therefor.

          "Warrant Stock" shall mean the shares of Common Stock purchasable by
           -------------
the holder of any Warrants upon the exercise thereof.

          Section 2.  Exercise of Warrant.  The holder of this Warrant may, at
                      -------------------
any time on and after the date hereof, but not later than the Expiration Date,
exercise this Warrant in whole at any time or in part from time to time for the
number of Stock Units which such holder is then entitled to purchase hereunder.
The Holder may exercise this Warrant, in whole or in part, by delivering to the
Company at its office maintained pursuant to Section 13 for such purpose (i) a
written notice of such Holder's election to exercise this Warrant, which notice
shall specify the number of Stock Units to be purchased, (ii) this Warrant and
(iii) a sum equal to the aggregate Exercise Price therefor in immediately
available funds.

          Any notice required under this Section 2 may be in the form of a
subscription set out at the end of this Warrant.  Upon delivery thereof, the
Company shall as promptly as practicable cause to be executed and delivered to
such holder a certificate or certificates representing the aggregate number of
shares of Common Stock issuable upon such exercise.

          The stock certificate or certificates for Warrant Stock so delivered
shall be in such denominations as may be specified in said notice and shall be
registered in the name of such Holder or, subject to Section 9, such other name
or names as shall be designated in said notice.  Such certificate or
certificates shall be deemed to have been issued and such Holder or any other
Person so designated to be named therein shall be deemed to have become a holder
of record of such shares, including to the extent permitted by law the right to
vote such shares or to consent or to receive notice as a stockholder, as of the
time said notice is delivered to the Company as aforesaid.  If this Warrant
shall have been exercised only in part, the Company shall, at the time of
delivery of said certificate or certificates, deliver to such Holder a new
Warrant dated the date it is issued, evidencing the rights of such Holder to
purchase the remaining Stock Units called for by this Warrant, which new Warrant
shall in all other respects be identical with this Warrant.

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          The Company shall pay all expenses, taxes and other charges payable in
connection with the preparation, issue and delivery of stock certificates under
this Section 2.

          All shares of Common Stock issuable upon the exercise of this Warrant
shall be validly issued, fully paid and nonassessable, and free from all liens
and other encumbrances thereon.  The Company will from time to time take all
such action as may be necessary to assure that the par value per share of the
unissued Common Stock acquirable upon exercise of this Warrant is at all times
equal to or less than the Exercise Price then in effect.

          The Company shall not issue certificates for fractional shares of
stock upon any exercise of this Warrant whenever, in order to implement the
provisions of this Warrant, the issuance of such fractional shares is required.
Instead, the Company shall pay cash in lieu of such fractional share upon such
exercise.

          Section 3.  Transfer, Division and Combination.  Subject to Section 9,
                      ----------------------------------
this Warrant and all rights hereunder are transferable, in whole or in part, on
the books of the Company to be maintained for such purpose, upon surrender of
this Warrant at the office of the Company maintained for such purpose pursuant
to Section 13, together with (a) a written assignment in the form set out at the
end of this Warrant duly executed by the Holder hereof or its agent or attorney,
(b) a copy of the Purchase Agreement duly executed by an authorized
representative of the transferee (substantially in the form executed by the
Holder or in such other form as reasonably acceptable to counsel to the Company)
and (c) payment of funds sufficient to pay any stock transfer taxes payable upon
the making of such transfer.  Upon such surrender, execution and payment, the
Company shall, subject to Section 9, execute and deliver a new Warrant or
Warrants in the name of the assignee or assignees and in the denominations
specified in such instrument of assignment, and this Warrant shall promptly be
canceled.  If and when this Warrant is assigned in blank (in case the
restrictions on transferability in Section 9 shall have been terminated), the
Company may (but shall not be obliged to) treat the bearer hereof as the
absolute owner of this Warrant for all purposes and the Company shall not be
affected by any notice to the contrary.  This Warrant, if properly assigned in
compliance with this Section 3 and Section 9, may be exercised by an assignee
for the purchase of shares of Common Stock without having a new Warrant issued.

          This Warrant may, subject to Section 9, be divided upon presentation
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the holder hereof or its agent or attorney.  Subject to compliance
with the preceding paragraph and with Section 9, as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant to be divided or combined
in accordance with such notice.

          The Company shall pay all expenses, taxes and other charges incurred
by the Company in the performance of its obligations in connection with the
preparation, issue and delivery of Warrants under this Section 3.

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          The Company agrees to maintain at its aforesaid office books for the
registration and transfer of the Warrants.

          Section 4.  Adjustment of Stock Unit or Exercise Price.  The number of
                      ------------------------------------------
shares of Common Stock comprising a Stock Unit, and the Exercise Price per Stock
Unit, shall be subject to adjustment from time to time as set forth in this
Section 4 and in Section 5.

          4.1.  Stock Dividends, Subdivisions and Combinations.  In case at any
                ----------------------------------------------
time or from time to time the Company shall

          (a) take a record of the holders of its Nonpreferred Stock for the
purpose of entitling them to receive a dividend payable in, or other
distribution of, Nonpreferred Stock, or

          (b) subdivide its outstanding shares of Nonpreferred Stock into a
larger number of shares of Nonpreferred Stock, or

          (c) combine its outstanding shares of Nonpreferred Stock into a
smaller number of shares of Nonpreferred Stock, then the number of shares of
Common Stock comprising a Stock Unit immediately after the happening of any such
event shall be adjusted so as to consist of the number of shares of Common Stock
which a record holder of the number of shares of Common Stock comprising a Stock
Unit immediately prior to the happening of such event would own or be entitled
to receive after the happening of such event; provided, however, that no such
event may take place with respect to any shares of Nonpreferred Stock unless it
shall also take place for all shares of Nonpreferred Stock.

          4.2.  Other Provisions Applicable to Adjustments.  The following
                ------------------------------------------
provisions shall be applicable to the making of adjustments of the number of
shares of Common Stock comprising a Stock Unit hereinbefore provided for in this
Section 4:

          (a)  When Adjustments to Be Made.  The adjustments required by Section
               ---------------------------
4.1 shall be made whenever and as often as any specified event requiring an
adjustment shall occur.  For the purpose of any adjustment, any specified event
shall be deemed to have occurred at the close of business on the date of its
occurrence.

          (b)  Fractional Interests.  In computing adjustments under this
               --------------------
Section 4, fractional interests in Nonpreferred Stock shall be taken into
account to the nearest one-thousandth of a share.

          (c)  When Adjustment Not Required.  If the Company shall take a record
               ----------------------------
of the holders of its Nonpreferred Stock for the purpose of entitling them to
receive a dividend or distribution and shall, thereafter and before the
distribution thereof to shareholders, abandon its

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plan to pay or deliver such dividend or distribution, then thereafter no
adjustment shall be required by reason of the taking of such record and any such
adjustment previously made in respect thereof shall be rescinded and annulled.

          4.3.  Merger, Consolidation or Disposition of Assets.  In case the
                ----------------------------------------------
Company shall merge or consolidate into another corporation, or shall sell,
transfer or otherwise dispose of all or substantially all of its property,
assets or business to another corporation and pursuant to the terms of such
merger, consolidation or disposition of assets, shares of common stock of the
successor or acquiring corporation are to be received by or distributed to the
holders of Nonpreferred Stock of the Company, then each holder of a Warrant
shall have the right thereafter to receive, upon exercise of such Warrant, Stock
Units each comprising the number of shares of common stock of the successor or
acquiring corporation receivable upon or as a result of such merger,
consolidation or disposition of assets by a holder of the number of shares of
Nonpreferred Stock comprising a Stock Unit immediately prior to such event.  If,
pursuant to the terms of such merger, consolidation or disposition of assets,
any cash, shares of stock or other securities or property of any nature
whatsoever (including warrants or other subscription or purchase rights) are to
be received by or distributed to the holders of Nonpreferred Stock of the
Company, there shall be either, at the Holder's option, (i) a reduction of the
Exercise Price equal to the amount applicable to the number of shares of Common
Stock then comprising a Stock Unit of any such cash and of the fair value of any
and all such shares of stock or of other securities or property to be received
by or distributed to the holders of Nonpreferred Stock of the Company, or (ii)
such Holder shall have the right to receive, upon exercise of its Warrant, such
cash, shares of stock or other securities or property of any nature as a holder
of the number of shares of Nonpreferred Stock underlying a Stock Unit would have
been entitled to receive upon the occurrence of such event.  Such fair value
shall be determined in good faith by the Board of Directors of the Company,
provided that if such determination is objected to by the Holders of Warrants
evidencing a majority in number of the total number of Stock Units at the time
purchasable upon the exercise of all then outstanding Warrants, such
determination shall be made by an independent appraiser selected by the Company
and said Holders.  In the event that the Company and said Holders cannot, in
good faith, agree upon an appraiser, then the Company, on the one hand, and said
Holders, on the other hand, shall each select an appraiser, the two appraisers
so selected shall select a third appraiser who shall be directed to prepare such
a written appraisal which shall be conclusive and binding on the parties.  The
fees and expenses of any appraisers shall be paid by the Company, except in the
case where the valuation of any appraiser who renders an Appraisal is within ten
percent (10%) of the value originally determined by the Board of Directors, in
which case the Holders shall pay the fees and expenses of any appraisers.  In
case of any such merger, consolidation or disposition of assets, the successor
acquiring corporation shall expressly assume the due and punctual observance and
performance of each and every covenant and condition of this Warrant to be
performed and observed by the Company and all of the obligations and liabilities
hereunder, subject to such modification as shall be necessary to provide for
adjustments of Stock Units which shall be as nearly equivalent as practicable to
the adjustments provided for in this Section 4.  For the purposes of this
Section 4 "common stock of the successor or acquiring corporation" shall include
           ------------------------------------------------------
stock of such corporation of any class, that is not preferred as to dividends or
assets over any other class of

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stock of such corporation and that is not subject to redemption, and shall also
include any evidences of indebtedness, shares of stock or other securities which
are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event, and
any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Subsection 4.3 shall similarly apply to successive
mergers, consolidations or dispositions of assets.

          4.4  Special Adjustment Feature.  In the event the Company sells its
               --------------------------
Common Stock (or options, warrants, convertible securities or other securities
otherwise convertible into or exchangeable for Common Stock) at less than $5.25
per share (or, in the case of options, warrants, convertible securities or any
other instruments convertible or otherwise exchangeable into shares of Common
Stock at any price lower than the issuance price specifically permitted pursuant
to the terms of the Company's stock option plans or Employee Stock Purchase
Plan) for a period of 90 days after the Closing Date, the Exercise Price shall
be adjusted downward in an amount proportionate to the downward adjustment that
is made to the effective per share purchase price for all of the shares of
Common Stock purchased by the Purchaser pursuant to Section 7.1(b) of the
Purchase Agreement.

          Section 5.  Notice to Warrant Holders.
                      -------------------------

          5.1.  Notice of Adjustment of Stock Unit or Exercise Price.  Whenever
                ----------------------------------------------------
the number of shares of Common Stock comprising a Stock Unit, or the price at
which a Stock Unit may be purchased upon exercise of the Warrants, shall be
adjusted pursuant to Section 4, the Company shall forthwith obtain a certificate
signed by its Chief Financial Officer, setting forth, in reasonable detail, the
event requiring the adjustment and the method by which such adjustment was
calculated (including a statement of the fair value, as determined by the Board
of Directors of the Company or by appraisal (if applicable), of any evidences of
indebtedness, shares of stock, other securities or property or warrants or other
subscription or purchase rights referred to in Section 4.3) and specifying the
number of shares of Common Stock comprising a Stock Unit and (if such adjustment
was made pursuant to Section 4.3) describing the number and kind of any other
shares of stock comprising a Stock Unit, and any change in the purchase price or
prices thereof, after giving effect to such adjustment or change.  The Company
shall promptly, and in any case within three days after the making of such
adjustment, cause a signed copy of such certificate to be delivered to each
Holder of a Warrant in accordance with Section 14.  The Company shall keep at
its office or agency, maintained for the purpose pursuant to Section 13, copies
of all such certificates and cause the same to be available for inspection at
said office during normal business hours by any holder of a Warrant or any
prospective purchaser of a Warrant designated by a Holder thereof.

          5.2.  Notice of Certain Corporate Action.  In case the Company shall
                ----------------------------------
propose (a) to pay any dividend payable in stock of any class to the holders of
its Nonpreferred Stock or to make any other distribution to the holders of its
Nonpreferred Stock (other than a cash dividend) or (b) to effect any
consolidation, merger or sale, organic change, transfer or other disposition of
all or substantially all of its property, assets or business, then in each such
case, the Company

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shall deliver to each Holder of a Warrant, in accordance with Section 14, a
notice of such proposed action, which shall specify the date on which a record
is to be taken for the purposes of such stock dividend, distribution or rights,
consolidation, merger, sale, organic change or transfer is to take place and the
date of participation therein by the holders of Nonpreferred Stock, if any such
date is to be fixed, and shall also set forth such facts with respect thereto as
shall be reasonably necessary to indicate the effect of such action on the
Nonpreferred Stock and the number and kind of any other shares of stock which
will comprise a Stock Unit, and the purchase price or prices thereof, after
giving effect to any adjustment which will be required as a result of such
action. Such notice shall be so delivered as promptly as reasonably possible.

          Section 6.  Reservation and Authorization of Common Stock.  The
                      ---------------------------------------------
Company shall at all times reserve and keep available for issue upon the
exercise of Warrants such number of its authorized but unissued shares of Common
Stock as will be sufficient to permit the exercise in full of all outstanding
Warrants.

          Section 7.  Taking of Record; Stock and Warrant Transfer Books.  In
                      --------------------------------------------------
the case of all dividends or other distributions by the Company to the holders
of its Nonpreferred Stock with respect to which any provision of Section 4
refers to the taking of a record of such holders, the Company will in each such
case take such a record and will take such record as of the close of business on
a Business Day.  The Company will not at any time, except upon dissolution,
liquidation or winding up or as otherwise may be required by law, close its
stock transfer books or Warrant transfer books so as to result in preventing or
delaying the exercise or transfer of any Warrant.

          Section 8.  Taxes.  The Company will pay all taxes (other than
                      -----
federal, state, local or foreign income taxes) which may be payable in
connection with the execution and delivery of this Warrant or the issuance and
sale of the Restricted Securities hereunder and will save the Holder harmless
without limitation as to time against any and all liabilities with respect to or
resulting from any delay in paying, or omission to pay, such taxes.  The
obligations of the Company under this Section 8 shall survive any redemption,
repurchase or acquisition of Restricted Securities by the Company.

          Section 9.  Restrictions on Transferability.  This Warrant and all
                      -------------------------------
other Restricted Securities shall not be transferable except upon the conditions
specified in this Section 9.

          9.1  Transfer to an Affiliate.  The Holder shall have the right to
               ------------------------
transfer any Restricted Securities to any Affiliate of the Holder, in each case
free of the restrictions imposed by this Section 9 other than the requirement as
to the legending of the certificates for such Restricted Securities specified in
Section 9.2.  No opinion of counsel shall be required for a transfer of
Restricted Securities to an Affiliate of the Holder.

          9.2  Transfer to a Non-Affiliate.  The Holder and his or her or her
               ---------------------------
subsequent transferees shall have the right to transfer any Restricted
Securities to a non-Affiliate of Holder in accordance with Sections 8 and 9 of
the Purchase Agreement.

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          Section 10.  Limitation of Liability.  No provision hereof, in the
                       -----------------------
absence of affirmative action by the Holder to purchase shares of Common Stock,
and no mere enumeration herein of the rights or privileges of the Holder, shall
give rise to any liability of the Holder for the purchase price of the Warrant
Stock or as a stockholder of the Company, whether such liability is asserted by
the Company or by creditors of the Company.

          Section 11.  Loss or Destruction of Warrant Certificates.  Upon
                       -------------------------------------------
receipt of evidence satisfactory to the Company of 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 Company
(the original Holder's or any other Affiliate of such original Holder's
indemnity being satisfactory indemnity in the event of loss, theft or
destruction of any Warrant owned by such Holder), or, in the case of any such
mutilation, upon surrender and cancellation of such Warrant, the Company 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
aggregate number of shares of Common Stock.

          Section 12.  Amendments.  The terms of this Warrant may be amended,
                       ----------
and the observance of any term therein may be waived, but only with the written
consent of the holders of Warrants evidencing a majority in number of the total
number of Stock Units at the time purchasable upon the exercise of all then
outstanding Warrants, provided that no such action may change the number of
shares of stock comprising a Stock Unit or the Exercise Price, without the
written consent of the holders of Warrants evidencing 100% in number of the
total number of Stock Units at the time purchasable upon the exercise of all
then outstanding Warrants.  For the purposes of determining whether the holders
of outstanding Warrants entitled to purchase a requisite number of Stock Units
at any time have taken any action authorized by this Warrant, any Warrants owned
by the Company or any Affiliate of the Company (other than an institutional
investor which may be deemed an Affiliate solely by reason of the ownership of
Warrants) shall be deemed not to be outstanding.

          Section 13.  Office of the Company.  So long as any Warrant remains
                       ---------------------
outstanding, the Company shall maintain an office where the Warrants may be
presented for exercise, transfer, division or combination as in this Warrant
provided.  Such office shall be at 345 Los Coches Street, Milpitas, California
95035, unless and until the Company shall designate and maintain some other
office for such purposes and deliver written notice thereof to the Holders of
all outstanding Warrants.

          Section 14.  Notices Generally.  All communications (including all
                       -----------------
required or permitted notices) pursuant to the provisions hereof shall be in
writing and shall be sent, to any registered Holder of any Warrants or Warrant
Stock, to the Holder in accordance with the notice provisions set forth in
Section 12 of the Purchase Agreement.

          Section 15.  Governing Law.  This Warrant shall be governed by and
                       -------------
construed in accordance with the laws of the State of California (without regard
to conflicts of law provisions thereof).

                                       11
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be signed
in its name by its _________________ on this ___ day of _____________, 2000.

                                   READ-RITE CORPORATION

                                   _______________________________
                                   By:
                                   Its:

<PAGE>

                               SUBSCRIPTION FORM
                (to be executed only upon exercise of Warrant)

          The undersigned registered owner of this Warrant irrevocably exercises
this Warrant for and purchases ___________ Stock Units of Read-Rite Corporation,
a Delaware corporation, purchasable with this Warrant, and herewith makes
payment therefor (by check in the amount of $_____), all at the price and on the
terms and conditions specified in this Warrant and requests that certificates
for the shares of Common Stock hereby purchased (and any securities or other
property issuable upon such exercise) be issued in the name of and delivered to
_________________________ whose address is ___________________________  and, if
such Stock Units shall not include all of the Stock Units issuable as provided
in this Warrant that a new Warrant of like tenor and date for the balance of the
Stock Units issuable thereunder be delivered to the undersigned.

Dated:  _____________, _____

                                           __________________________________
                                           (Signature of Registered Owner)

                                           __________________________________
                                           (Street Address)

                                           __________________________________
                                           (City)    (State)    (Zip Code)

<PAGE>

                                ASSIGNMENT FORM

          FOR VALUE RECEIVED the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under this Warrant, with respect to the number of
Stock Units set forth below:

Number of Stock Units               Name and Address of Assignee
---------------------               ----------------------------

and does hereby irrevocably constitute and appoint _____________________________
Attorney to make sure transfer occurs on the books of Read-Rite Corporation, a
Delaware corporation, maintained for the purpose, with full power of
substitution in the premises.

Dated:

                                         ___________________________
                                         Signature

                                         ___________________________
                                         Witness

NOTICE:   The signature to the assignment must correspond with the name as
          written upon the face of the Warrant in every particular instance,
          without alteration or enlargement or any change whatsoever.

          The signature to this assignment must be guaranteed by a bank or trust
          company having an office or correspondent in New York, New York or Los
          Angeles or San Francisco, California or by a firm having membership on
          the New York Stock Exchange.Consulting Agreement

         This Consulting Agreement (the "Agreement") is made and entered into by
and  between  Funds  America  Finance  Corporation,   a  publicly  held  Florida
corporation with no classes of equity securities  registered under Section 12(g)
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and not
currently  trading on the over the counter  bulletin board operated by but not a
part of NASDAQ  (the  "Client");  and,  The Yankee  Companies,  Inc.,  a Florida
corporation  ("Yankees";  the Client and Yankees being hereinafter  collectively
referred to as the "Parties" and generically as a "Party").

                                   Preamble :

         WHEREAS,  the Client is in the process of developing a consumer finance
         company  specializing in refinancing of mobile homes, with the eventual
         goal   of   developing    diversified   funding   sources,    including
         collateralized  securities  comprised  of  pass  through  certificates,
         portfolio pools and similar instruments  generated from its operations,
         and in conjunction therewith,  the Client has entered into an agreement
         with another client of Yankees pursuant to which it hopes to register a
         class of its securities under Section 12(g) of the Securities  Exchange
         Act of 1934, as amended (the "Exchange Act"); and

         WHEREAS, Yankees has substantial strategic business experience,  acumen
         and  contacts,  and the  Client  desires  to avail  itself of  Yankees'
         services  in  conjunction  with  development  and   implementation   of
         strategic  plans  designed  to  accomplish  the  foregoing  by securing
         Yankees's  assistance to develop and  implement  its  strategic  plans,
         retain additional management and directors,  and develop growth through
         acquisition of complementary business operations; and

         WHEREAS,  Yankees is agreeable to making its services  available to the
         Client,  on the terms and  subject to the  conditions  hereinafter  set
         forth:

         NOW, THEREFORE,  in consideration for Yankees's agreement to render the
         hereinafter  described services as well as of the premises,  the sum of
         TEN ($10)  DOLLARS,  and other  good and  valuable  consideration,  the
         receipt and  adequacy of which is hereby  acknow  ledged,  the Parties,
         intending to be legally bound, hereby agree as follows:

                                      -61-

<PAGE>

                                   Witnesseth:

                                   ARTICLE ONE
                           OBLIGATIONS OF THE PARTIES

1.1      Description of Services

(A)      Yankees's areas of expertise include corporate structure,  organization
         and reorganization;  mergers, acquisitions and divestitures;  strategic
         corporate development;  corporate financial and equity analysis; market
         strategy   planning  and   implementation;   corporate   communication,
         financial  public  relations  and  stockholder   relations  consulting;
         business  plan  development  and  implementation;  marketing  sales and
         analysis;  executive and  professional  recruitment;  coordination  and
         supervision of professional services; development and implementation of
         regulatory compliance procedures (the "Services").

(B)      During the Initial Term of this  Agreement  (as  hereinafter  defined),
         Yankees shall provide the Client with the Services, on a reasonable, as
         required basis, consistent with Yankees's other business activities.

(C)       Because of the Client's  current and anticipated  status under federal
          securities laws, in any circumstances  where Yankees is describing the
          securities of The Client to a third Party,  Yankees shall  disclose to
          such person the  compensation  received  from the Client to the extent
          required under any applicable  laws,  including,  without  limitation,
          Section 17(b) of the Securities Act of 1933, as amended;  however, the
          Parties  acknowledge  they do not  contemplate  that Yankees  shall be
          involved  in any  activities  on behalf of the Client  requiring  such
          descriptions  or  disclosures,   or  that  the  Services  involve  any
          activities  subject to regulation  under  federal or state  securities
          laws other than the prohibitions of the Foreign Corrupt Practices Act,
          except  for the  introduction  of the  Client  and its  principals  to
          licensed  broker  dealers  in  securities,   securities  analysts  and
          appropriate    corporate   information   and   stockholder   relations
          specialists.

1.2      Fiduciary Obligation to the Client

(A)      In  rendering  its  services,  Yankees  shall not disclose to any third
         party any confidential  non-public  information furnished by the Client
         or otherwise obtained by it with respect to the Client.

(B)     (1)    The Client  acknowledges  that  because  of Yankees  pre-existing
               relationship  with Equity Growth  Systems,  inc., a publicly held
               Delaware  corporation   ("Equity")  with  which  the  Client  has
               recently  entered  into an agreement  (the  "Equity  Agreement"),
               Yankees  may  face a  conflict  of  interest  and  that  any such
               conflict, if not resolved to Equity's  satisfaction,  may require
               Yankees to take actions or assume  positions  that are not in the
               best interest of the Client because  Yankees first  allegiance in
               such case must be to Equity;

                                      -62-

<PAGE>

         (2)      Notwithstanding  such potential conflict and after having been
                  advised  of the  foregoing,  the Client  hereby  prospectively
                  waives  any  claims or causes of action  against  Yankees as a
                  result of actions taken in such event, and agrees that Yankees
                  first loyalty and duty shall be to Equity; and

         (3)      The  Parties  hereby  agree  that in the event  that an actual
                  conflict  arises  between  the Client and  Equity,  the Client
                  shall have the unilateral rights to immediately terminate this
                  Agreement,  but that such  termination will not affect Yankees
                  right  to  compensation   from  the  Client,   as  hereinafter
                  provided.

1.3      Limitations on Services

(A)       The Parties  recognize that certain  responsibilities  and obligations
          are imposed by federal and state securities laws and by the applicable
          rules and regulations of stock exchanges,  the National Association of
          Securities  Dealers,  Inc.  (collectively  with its subsidiaries being
          hereinafter  referred to as the "NASD"),  in-house "due  diligence" or
          "compliance"   depart  ments  of  licensed   securities  firms,  etc.;
          accordingly,  Yankees agrees that it will not release any  information
          or data about the Client to any selected or limited person(s), entity,
          or group if  Yankees is aware  that such  information  or data has not
          been generally released or promulgated.

(B)      Yankees shall restrict or cease, as directed by the Client, all efforts
         on behalf of the Client,  including all  dissemination  of  information
         regarding  the Client,  immediately  upon receipt of  instructions  (in
         writing by fax or letter) to that effect from the Client.

1.4      Yankees' Compensation

(A)      Except as  described  below with  reference  to certain of the services
         described above,  which are to be completed within the initial 365 days
         of this Agreement:

         (1)      Yankees will bill at its standard hourly rates for all work as
                  to which a prior written  arrangement with different terms has
                  not been entered into,  however,  no hourly billable  services
                  will be provided except at The Client's specific request.

                                      -63-
<PAGE>

         (2)      Any documents  prepared by Yankees or provided to The Client's
                  advisors,  at The Client's request,  on existing forms will be
                  subject to a $50 per page initial  licensing  fee augmented by
                  the time spent in personalizing the subject form.

(B)      Notwithstanding  the  provisions of Section  1.4(a)  above,  during the
         first 180 days of this  Agreement  (the "Initial  Term"),  Yankees will
         accept and the Client will pay to Yankees:

         (1)      Options  (the  "Class A Options")  to  purchase  shares of The
                  Client's  outstanding  or reserved  common stock (all reserved
                  common stock being treated as outstanding for purposes of such
                  calculation),   on  the  following  terms  (the"Stock  Signing
                  Fee."):

              (a)   The quantity of the Client common stock subject to the Class
                    A Options  shall be equal to 5% of The Client's  outstanding
                    or reserved  common stock,  immediately  following  complete
                    exercise  of all the Class A Options,  but shall not be less
                    than 250,000 shares of the Client's common stock;

              (b)   The Class A Option term will  commence on the 60th day after
                    execution of this  Agreement and will terminate at the close
                    of  business  on the  365th  business  day after the Class A
                    Options  and the shares of common  stock into which they can
                    be  exercised  are  registered  for sale to the public under
                    applicable  federal  and  state  securities  laws;  however,
                    Yankees  shall  have the  option of  exercising  the Class A
                    Options  prior to such  registration  at a 50% discount from
                    the  otherwise  applicable  exercise  price,  subject to the
                    resale restrictions  imposed by SEC Rule 144, but subject to
                    the piggy back and registration provisions,  as reflected in
                    the form of warrant agreement annexed hereto and made a part
                    hereof  as  composite  exhibit  1.4(B),   which  form  shall
                    constitute  the basis for and terms of the Class A  Options,
                    other than as specifically modified hereby.

               (c)  The  exercise  price of the Class A Options  will,  assuming
                    they are all exercised, will be $10,000, the price per share
                    to be based on the number of shares  outstanding at the time
                    of  exercise,  pro rated in  accordance  with the  following
                    formula:  in the event that an aggregate of 5,000,000 shares
                    of capital  stock are  outstanding  or  reserved  for future
                    issuance under  reasonably  definable  terms (e.g.  options,
                    warrants, pending acquisitions, obligations under employment
                    agreements,  etc.),  then the  number of shares  purchasable
                    would be 250,000 and the  exercise  price would be $0.04 per
                    share,  any  increase  or decrease  in the  outstanding  and
                    reserved shares  resulting in a corresponding  adjustment to
                    the Class A Option exercise quantity and price (e.g., if the
                    shares  outstanding  were 10,000,000  rather than 5,000,000,
                    then the number of shares  purchasable  would be 500,000 and
                    the exercise price would be $0.02 per share);

                                      -64-

<PAGE>

               (d)  Yankees  shall have the right to  cashless  exercise  of the
                    options,  as  reflected  in the  form of  warrant  agreement
                    annexed  hereto and made a part hereof as composite  exhibit
                    1.4(B).

         (2)      If, for any reason  (other than a stock  split also  affecting
                  Yankees's shares issued as the Stock Signing Fee) The Client's
                  outstanding  securities exceed those contemplated as the basis
                  for  determining  the Class A Option exercise prices within 12
                  months following the end of the exercise term, then additional
                  shares in an amount to such  difference  on a pro rated  basis
                  (based on the options exercised) shall be issued to Yankees.

         (3)      The foregoing compensation is in lieu of document license fees
                  and of required  cash  payments  for up to an aggregate of 200
                  hours of  Yankees's  hourly  fees during the initial six month
                  term  of this  Agreement  (but  not  those  of its  associated
                  entities),  and,  for tax  purposes,  shall  be  valued  at an
                  aggregate of $5,000.

         (4)      The  Client  has been  informed  that a  portion  of the Stock
                  Signing  Fee may be  transferred  by  Yankees  to third  party
                  independent   consultants,   all  of  whom  will   qualify  as
                  accredited  investors  as that term is  defined in Rule 501 of
                  Regulation D promulgated  by the United States  Securities and
                  Exchange  Commission (the  "Commission"),  and who will assist
                  Yankees in the performance of its duties hereunder.

         (5)      The Class A  Options  may be  exercised,  in whole or in part,
                  there being no minimum exercise requirements.

(C)      In addition  to the  compensation  described  above with  reference  to
         services  during the Initial Term of this  Agreement and whether or not
         the following services are rendered during such Initial Term:

         (1)      In the event that Yankees arranges or provides funding for the
                  Client on terms more  beneficial  than those  reflected in The
                  Client's current principal financing agreements, Yankees shall
                  be entitled, at its election, to either:

               (a)  A fee equal to 25% of such savings,  on a continuing  basis;
                    or

               (b)  If  equity  funding  is  provided   though  Yankees  or  any
                    affiliates thereof, a discount of 10% from the bid price for
                    the subject equity securities,  if they are issuable as free
                    trading securities, or, a discount of 50% from the bid price
                    for the subject equity  securities,  if they are issuable as
                    restricted  securities  (as the term  restricted is used for
                    purposes of SEC Rule 144); or

                                      -65-
<PAGE>

               (c)  If  funding  is  provided  by any person or group of persons
                    introduced  to the Client by  Yankees or persons  associated
                    with  Yankees,  directly  or  indirectly,  but  not  is  not
                    provided by Yankees or its  principals  as  described in the
                    preceding  subsection,  then Yankees shall be entitled to an
                    introduction  fee equal to 5% of the  aggregate  proceeds so
                    obtained; and

         (2)      In the event that Yankees  generates  business for the Client,
                  then,  on any  sales  resulting  therefrom,  Yankees  shall be
                  entitled  to a  commission  equal to 10% of the  gross  income
                  derived by the Client therefrom, on a continuing basis.

         (3)      In the event that Yankees or any  affiliate  thereof  arranges
                  for an  acquisition  by the  Client,  then  Yankees  shall  be
                  entitled to compensation equal to 10% of the compensation paid
                  for  such   acquisition,   in  addition  to  any  compensation
                  negotiated  and  received  from  the  acquired  entity  or its
                  affiliates.

(D)      The Client will assure that its legal  counsel  promptly  prepares  all
         reports  which  then  existing  holders  of  The  Client's   securities
         (including  Yankees,  its  affiliates  and  successors in interest) are
         required  to file  with  the  Commission  as a result  of The  Client's
         reporting  status,  including  Commission  Forms 3, 4 and 5,  Schedules
         13(d) and  Schedules  13(g),  and shall  submit all such reports to the
         subject  stockholders  for prompt  execution and timely filing with the
         Commission.

(E)     (1)    In  addition to payment of fees,  the Client will be  responsible
               for  payment  of all  costs  and  disbursements  associated  with
               Yankees's services either:

               (a)  Involving  less than $50 per item and $200 in the  aggregate
                    during the preceding 30 day period; or

               (b)  Reflected in an operating budget approved by the Client; or

               (c)  Approved in writing by the Client;  provided,  however, that
                    the refusal by the Client to approve  expenditures  required
                    for the proper performance of Yankees's services will excuse
                    performance of such services.

         (2)   All of  Yankees's  statements  will  be paid within 10 days after
               receipt.

                                      -66-

<PAGE>

         (3)      In the event additional time for payment is required,  Yankees
                  will have the option of selling the account receivable and the
                  Client  agrees to pay interest  thereon at the monthly rate of
                  1%.

         (4)      In the event  collection  activities are required,  the Client
                  agrees to pay all of Yankees's out of pocket costs  associated
                  therewith.

         (5)      There will be no change or waiver of the provisions  contained
                  herein,  unless  such  charge is in writing  and signed by the
                  Client and Yankees.

1.5      The Client's Commitments

(A).     (1)      All work requiring legal review will be submitted for approval
                  by the Client to the Client's legal counsel prior to its use.

         (2)      Final  drafts of any  matters  prepared  for use by Yankees in
                  conjunction  with  the  provision  of  the  Services  will  be
                  reviewed  by the  Client  and,  if  legally  required,  by The
                  Client's legal counsel, to assure that:

                  (a)      All required information has been provided;

                  (b)      All materials are presented accurately; and,

                  (c)      That no materials required to render information
                           provided "not misleading" are omitted.

         (2)      Only after such  review and  approval  by the Client  and,  if
                  required,  The Client's legal  counsel,  will any documents be
                  filed with regulatory agencies or provided to Yankees or third
                  parties.

         (3)      (a)      Financial  data  will  be  reviewed   by   competent,
                           independent,  certified  public  accountants  who are
                           members of the American Institute of Certified Public
                           Accountants' (the "AICPA) securities practice section
                           and who have  successfully  undergone peer review for
                           such  specialty,  to be  separately  retained  by the
                           Client.

                  (b)      Such  accountants  will be  required  to  review  and
                           approve all  financially  related  filings,  prior to
                           release to Yankees, other third parties or submission
                           to the appropriate regulatory authorities.

                                      -67-
<PAGE>

(B)      (1)      The   Client  shall  supply  Yankees  on a regular  and timely
                  basis with all approved data and information about the Client,
                  its  management,  its  products,  and its  operations  and the
                  Client shall be responsible  for advising  Yankees of any fact
                  which  would  affect  the  accuracy  of  any  prior  data  and
                  information supplied to Yankees.

         (2)      The  Client  shall use its best  efforts  to  promptly  supply
                  Yankees with full and complete  copies of all filings with all
                  federal and state securities agencies;  with full and complete
                  copies of all shareholder  reports and communications  whether
                  or not prepared with Yankees's  assistance,  with all data and
                  information  supplied to any  analyst,  broker-dealer,  market
                  maker,  or other member of the financial  community;  and with
                  all product/services brochures, sales materials, etc.

         (3)      The Client shall promptly  notify Yankees of the filing of any
                  registration  statement for the sale of  securities  and/or of
                  any other event which triggers any restrictions on publicity.

         (4)      The Client shall be deemed to make a continuing representation
                  of the  accuracy  of any and  all  material  facts,  material,
                  information,  and data which it  supplies  to Yankees  and the
                  Client  acknowledges  its awareness  that Yankees will rely on
                  such  continuing  representation  in performing  its functions
                  under this Agreement.

         (5)      Yankees,  in the absence of notice in writing from the Client,
                  may rely on the continuing  accuracy of material,  information
                  and data supplied by the Client.

                                   ARTICLE TWO
                      TERM, RENEWALS & EARLIER TERMINATION

2.1      Term.
         ----

         This Agreement shall be for an initial term of 730 days,  commencing on
the date of its complete  execution by all Parties,  as evinced in the execution
page hereof (the "Initial Term").

2.2      Renewals.
         --------

(A)      This Agreement shall be renewed automatically,  after expiration of the
         original term, on a continuing  annual basis,  unless the Party wishing
         not to renew this  Agreement  provides  the other  Party  with  written
         notice of its election not to renew ("Termination  Election Notice") on
         or before the 30th day prior to termination of the then current term.

                                      -68-
<PAGE>

(B)      In the event of renewal,  Yankees shall be entitled to additional Class
         A Options on the same terms as those reflected herein,  except that the
         exercise  price would be equal to 75% of the average  opening bid price
         for the  Client's  common  stock,  as  reported  on the  highest  level
         securities  exchange  or  securities  market  on which  prices  for the
         Client's  securities are quoted, on the ten business days preceding the
         first day of the renewal term.

2.3      Final Settlement.
         ----------------

(A)      Upon  termination  of this  Agreement  and  payment  to  Yankees of all
         amounts due it hereunder,  Yankees or its representative  shall execute
         and  deliver to the Client a receipt for such sums and a release of all
         claims,  except such claims as may have been submitted  pursuant to the
         terms of this Agreement and which remain unpaid,  and, shall  forthwith
         tender to the Client all records,  manuals and written  procedures,  as
         may be desired by the Client for the continued conduct of its business;
         and

(B)      The Client or its representative shall execute and deliver to Yankees a
         receipt for all materials returned and a release of all claims,  except
         such  claims as may have been  submitted  pursuant to the terms of this
         Agreement  and which remain  unpaid,  and,  shall  forthwith  tender to
         Yankees all records, manuals and written procedures,  as may be desired
         by Yankees for the continued conduct of its business.

                                  ARTICLE THREE
                YANKEES' CONFIDENTIALITY & COMPETITION COVENANTS

3.1      General Provisions.
         ------------------

(A)  Yankees  acknowledges  that,  in and as a result  of its  entry  into  this
     Agreement, it will be making use of confidential information of special and
     unique  nature and value  relating to such  matters as The  Client's  trade
     secrets, systems, procedures,  manuals, confidential reports; consequently,
     as  material  inducement  to the entry into this  Agreement  by the Client,
     Yankees  hereby  covenants and agrees that it shall not, at anytime  during
     the  term  of this  Agreement,  any  renewals  thereof  and  for two  years
     following the terms of this Agreement, directly or indirectly, use, divulge
     or  disclose,  for  any  purpose  whatsoever,   any  of  such  confidential
     information  which has been  obtained by or  disclosed to it as a result of
     its entry into this Agreement or provision of services hereunder.

(B)  In the event of a breach or  threatened  breach  by  Yankees  of any of the
     provisions  of this Article  Three,  the Client,  in addition to and not in
     limitation  of any other  rights,  remedies  or  damages  available  to the
     Client,  whether  at law or in equity,  shall be  entitled  to a  permanent
     injunction  in order to prevent or to restrain  any such breach by Yankees,
     or  by   its   partners,   directors,   officers,   stockholders,   agents,
     representatives,  servants, employers, employees, affiliates and/or any and
     all persons directly or indirectly acting for or with it.

                                      -69-

<PAGE>

3.2      Special Remedies.
         ----------------

         In view of the  irreparable  harm and damage  which  would  undoubtedly
occur to the  Client as a result  of a breach by  Yankees  of the  covenants  or
agreements  contained  in this  Article  Three,  and in  view of the  lack of an
adequate  remedy  at law to  protect  The  Client's  interests,  Yankees  hereby
covenants and agrees that the Client shall have the following  additional rights
and remedies in the event of a breach hereof:

(A)      Yankees  hereby  consents to the  issuance  of a  permanent  injunction
         enjoining it from any  violations  of the  covenants  set forth in this
         Article Three; and

(B)      Because it is  impossible  to ascertain or estimate the entire or exact
         cost,  damage  or injury  which the  Client  may  sustain  prior to the
         effective enforcement of such injunction,  Yankees hereby covenants and
         agrees  to pay  over  to the  Client,  in the  event  it  violates  the
         covenants and agreements  contained in this Article Three,  the greater
         of:

         (1)   Any payment or compensation of any kind received by it because of
               such violation before the issuance of such injunction, or

         (2)   The sum of One Thousand Dollars per violation, which sum shall be
               liquidated damages,  and not a penalty, for the injuries suffered
               by the Client as a result of such  violation,  the Parties hereto
               agreeing  that such  liquidated  damages are not  intended as the
               exclusive  remedy  available  to the Client for any breach of the
               covenants and agreements  contained in this Article Three,  prior
               to the issuance of such injunction,  the Parties recognizing that
               the only  adequate  remedy to protect  the Client from the injury
               caused by such breaches would be injunctive relief.

3.3      Cumulative Remedies.
         -------------------

         Yankees hereby  irrevocably  agrees that the remedies described in this
Article  Three shall be in  addition  to, and not in  limitation  of, any of the
rights or  remedies  to which the Client may be  entitled,  whether at law or in
equity, under or pursuant to this Agreement.

3.4      Acknowledgment of Reasonableness.
         --------------------------------

(A)      Yankees hereby  represents,  warrants and acknowledges that its members
         or officers  and  directors  have  carefully  read and  considered  the
         provisions of this Article  Three and,  having done so, agrees that the
         restrictions set forth herein are fair and reasonable and are

                                      -70-

<PAGE>

         reasonably  required for the protection of the interests of the Client,
         its members, officers,  directors,  consultants,  agents and employees;
         consequently, in the event that any of the above-described restrictions
         shall be held  unenforceable  by any court of  competent  jurisdiction,
         Yankees hereby covenants, agrees and directs such court to substitute a
         reasonable judicially enforceable limitation in place of any limitation
         deemed  unenforceable  and, Yankees hereby covenants and agrees that if
         so modified,  the covenants contained in this Article Three shall be as
         fully  enforceable as if they had been set forth herein directly by the
         Parties.

(B)      In  determining   the  nature  of  this   limitation,   Yankees  hereby
         acknowledges, covenants and agrees that it is the intent of the Parties
         that a court  adjudicating a dispute arising  hereunder  recognize that
         the Parties desire that these covenants not to compete or circumvent be
         imposed and maintained to the greatest extent possible.

3.5      Exclusivity.
         -----------

         Yankees shall not be required to devote all of its business time to the
affairs of the  Client,  rather it shall  devote  such time as it is  reasonably
necessary in light of its other business commitments.

                                  ARTICLE FOUR
              THE CLIENT'S CONFIDENTIALITY & COMPETITION COVENANTS

4.1      General Prohibitions

(A)  The  Client  acknowledges  that,  in and as a result of its  engagement  of
     Yankees,  the Client  will be making  use of  confidential  information  of
     special and unique  nature and value  relating to such matters as Yankees's
     business  contacts,   professional   advisors,   trade  secrets,   systems,
     procedures,  manuals, confidential reports, lists of the Clients, potential
     customers and funders;  consequently,  as material  inducement to the entry
     into this Agreement by Yankees, the Client hereby covenants and agrees that
     it shall not, at anytime  during the term of this  Agreement,  any renewals
     thereof an for two years following the terms of this Agreement, directly or
     indirectly,  use, divulge or disclose,  for any purpose whatsoever,  any of
     such confidential information which has been obtained by or disclosed to it
     as a result of its employment of Yankees, or Yankees's affiliates.

(B)  In the event of a breach or  threatened  breach by the Client of any of the
     provisions  of  this  Article  Four,  Yankees,  in  addition  to and not in
     limitation of any other rights,  remedies or damages  available to Yankees,
     whether at law or in equity, shall be entitled to a permanent injunction in
     order to prevent or to restrain  any such  breach by the Client,  or by The
     Client's   partners,    directors,    officers,    stockholders,    agents,
     representatives,  servants, employers, employees, affiliates and/or any and
     all persons directly or indirectly acting for or with it.

                                      -71-

<PAGE>

4.2      Special Remedies.
         ----------------

         In view of the  irreparable  harm and damage  which  would  undoubtedly
occur to  Yankees  as a result of a breach by the  Client  of the  covenants  or
agreements  contained  in this  Article  Four,  and in  view  of the  lack of an
adequate  remedy  at law to  protect  Yankees's  interests,  the  Client  hereby
covenants and agrees that Yankees shall have the following additional rights and
remedies in the event of a breach hereof:

(A)      The Client  hereby  consents to the issuance of a permanent  injunction
         enjoining it from any  violations  of the  covenants  set forth in this
         Article Four is and

(B)      Because it is  impossible  to ascertain or estimate the entire or exact
         cost, damage or injury which Yankees may sustain prior to the effective
         enforcement of such injunction,  the Client hereby covenants and agrees
         to pay over to Yankees,  in the event it  violates  the  covenants  and
         agreements contained in this Article Four, the greater of:

         (1)   Any payment or compensation of any kind received by it because of
               such violation before the issuance of such injunction, or

         (2)   The sum of One Thousand Dollars per violation, which sum shall be
               liquidated damages,  and not a penalty, for the injuries suffered
               by  Yankees as a result of such  violation,  the  Parties  hereto
               agreeing  that such  liquidated  damages are not  intended as the
               exclusive  remedy  available  to  Yankees  for any  breach of the
               covenants and agreements contained in this Article Four, prior to
               the issuance of such injunction, the Parties recognizing that the
               only adequate remedy to protect Yankees from the injury caused by
               such breaches would be injunctive relief.

4.3      Cumulative Remedies.
         -------------------

         The Client  hereby  irrevocably  agrees that the remedies  described in
this Article Four shall be in addition to, and not in limitation  of, any of the
rights or remedies to which Yankees is or may be entitled to,  whether at law or
in equity, under or pursuant to this Agreement.

4.4      Acknowledgment of Reasonableness.
         --------------------------------

(A)      The  Client  hereby  represents,  warrants  and  acknowledges  that its
         officers  and  directors   have   carefully  read  and  considered  the
         provisions of this Article Four and, having done so,

                                      -72-
<PAGE>

         agree that the  restrictions  set forth herein are fair and  reasonable
         and are  reasonably  required for the  protection  of the  interests of
         Yankees,  its members,  officers,  directors,  consultants,  agents and
         employees;  consequently,  in the event that any of the above-described
         restrictions  shall be held  unenforceable  by any  court of  competent
         jurisdiction,  the Client  hereby  covenants,  agrees and directs  such
         court to substitute a reasonable judicially  enforceable  limitation in
         place of any  limitation  deemed  unenforceable  and, the Client hereby
         covenants and agrees that if so modified,  the  covenants  contained in
         this Article Four shall be as fully enforceable as if they had been set
         forth herein directly by the Parties.

(B)      In  determining  the  nature  of this  limitation,  the  Client  hereby
         acknowledges, covenants and agrees that it is the intent of the Parties
         that a court  adjudicating  a  dispute  hereunder  recognize  that  the
         Parties  desire that these  covenants  not to compete or  circumvent be
         imposed and maintained to the greatest extent possible.

                                  ARTICLE FIVE
                                  MISCELLANEOUS

5.1      Notices.
         -------

         All notices, demands or other written communications hereunder shall be
in writing,  and unless  otherwise  provided,  shall be deemed to have been duly
given on the first  business day after  mailing by United  States  registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

To Yankees:

                           The Yankee Companies, Inc.
           902 Clint Moore Road, Suite 136; Boca Raton, Florida 33487
                   Attention: Leonard Miles Tucker, President
               Telephone (561) 998-2025, Fax (561) 998-3425; and,
                       e-mail carrington@flinet.com; and

                   1941 Southeast 51st Terrace; Ocala, Florida
           34471 Telephone (352) 694-9179; Fax (352) 694-9178; e-mail
                              wacalvo3@atlantic.net
           Attention: Vanessa H. Mitchem, Chief Administrative Officer

To the Client:

                        Funds America Finance Corporation
    2501 East Commercial Boulevard, Suite 210; Fort Lauderdale, Florida 33306
      Telephone (954) 733-7777; Fax (954) 202-0245; e-mail ________@___.com
         Attention: Kim A. Naimoli, President & Chief Executive Officer

                                      -73-

<PAGE>

in each case,  with copies to such other address or to such other persons as any
Party shall designate to the others for such purposes in the manner  hereinabove
set forth.

5.2      Amendment.
         ---------

         No  modification,  waiver,  amendment,  discharge  or  change  of  this
Agreement shall be valid unless the same is in writing and signed by Parties.

5.3      Merger.
         ------

(A)      This  instrument,  together  with the  instruments  referred to herein,
         contains all of the  understandings  and agreements of the Parties with
         respect to the subject matter discussed herein.

(B)      All prior  agreements  whether  written or oral are  merged  herein and
         shall be of no force or effect.

5.4      Survival.
         --------

         The several  representations,  warranties  and covenants of the Parties
contained  herein  shall  survive the  execution  hereof and shall be  effective
regardless of any investigation  that may have been made or may be made by or on
behalf of any Party.

5.5      Severability.
         ------------

         If any  provision or any portion of any  provision  of this  Agreement,
other than a conditions precedent,  if any, or the application of such provision
or any portion  thereof to any person or  circumstance  shall be held invalid or
unenforceable,  the  remaining  portions  of such  provision  and the  remaining
provisions of this Agreement or the  application of such provision or portion of
such provision as is held invalid or  unenforceable  to persons or circumstances
other than  those to which it is held  invalid  or  unenforceable,  shall not be
affected thereby.

5.6      Governing Law and Venue.
         -----------------------

         This  Agreement  shall be construed in accordance  with the laws of the
State of Florida and any  proceeding  arising  between the Parties in any matter
pertaining or related to this Agreement  shall, to the extent  permitted by law,
be held in Broward County, Florida.

                                      -74-
<PAGE>

5.7      Dispute Resolution in lieu of Litigation.
         ----------------------------------------

(A)      In the  event of any  dispute  arising  under  this  Agreement,  or the
         negotiation  thereof or inducements  to enter into the  Agreement,  the
         dispute shall,  at the request of any Party,  be  exclusively  resolved
         through the following procedures:

         (1)      (a)      First,  the  issue  shall  be  submitted to mediation
                           before a mediation service in Broward County, Florida
                           to be  selected  by lot from six  alternatives  to be
                           provided, three by Yankees and three by the Client.

                  (b)      The mediation  efforts shall be concluded  within ten
                           business  days  after  their  initiation  unless  the
                           Parties  unanimously  agree to an extended  mediation
                           period;

         (2)      In the event that  mediation  does not lead to a resolution of
                  the  dispute  then at the  request of any Party,  the  Parties
                  shall  submit the  dispute to  binding  arbitration  before an
                  arbitration service located in Broward County,  Florida, to be
                  selected by lot, from six alternatives to be provided,  in the
                  manner set forth above for selection of a mediator;

         (3)      (A)      Expenses  of   mediation  shall   be   borne  by  the
                           Parties  equally if successful  but if  unsuccessful,
                           expenses of  mediation  and of  arbitration  shall be
                           borne  by the  Party  or  Parties  against  whom  the
                           arbitration decision is rendered.

                  (B)      If the terms of the arbitral award do not establish a
                           prevailing  Party,  then the expenses of unsuccessful
                           mediation and  arbitration  shall be borne 1/2 by the
                           Client and 1/2 by Yankees.

(B)      Judgment upon the award rendered by the arbitrator(s) may be entered in
         any court having jurisdiction thereof.

(C)      In any action  between  the Parties to enforce any of the terms of this
         Agreement  or  any  other  matter  arising  from  this  Agreement,  the
         prevailing  Party shall be entitled to recover its costs and  expenses,
         including   reasonable   attorneys'   fees  up  to  and  including  all
         negotiations,   trials  and  appeals,  whether  or  not  litigation  is
         initiated.

5.8      Benefit of Agreement.
         --------------------

         The terms and  provisions of this  Agreement  shall be binding upon and
inure to the benefit of the Parties,  jointly and severally,  their  successors,
assigns, personal representatives, estate, heirs and legatees.

                                      -75-
<PAGE>

5.9      Captions.
         --------

         The captions in this Agreement are for  convenience  and reference only
and in no way define,  describe,  extend or limit the scope of this Agreement or
the intent of any provisions hereof.

5.10     Number and Gender.
         -----------------

         All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, neuter, singular or plural, as the identity of the Party or
Parties, or their personal representatives, successors and assigns may require.

5.11     Further Assurances.
         ------------------

         The Parties  hereby agree to do,  execute,  acknowledge  and deliver or
cause to be done,  executed,  acknowledged  or delivered and to perform all such
acts and deliver all such deeds, assignments,  transfers, conveyances, powers of
attorney,  assurances, stock certificates and other documents, as may, from time
to time, be required herein to effect the intent and purpose of this Agreement.

5.12     Status.
         ------

(A)      Nothing in this  Agreement  shall be  construed  or shall  constitute a
         partnership,    joint    venture,    employer-employee    relationship,
         lessor-lessee relationship, or principal-agent relationship.

(B)      Throughout  the  term  of  this  Agreement,   Yankees  shall  serve  an
         independent  contractor,  as that term is defined by the United  States
         Internal  Revenue  Service,  and in  conjunction  therewith,  shall  be
         responsible for all of his own tax reporting and payment obligations.

(C)      In amplification of the foregoing, Yankees shall, subject to reasonable
         reimbursement  on a pre-approved  budgetary  basis,  be responsible for
         providing its own office facilities and supporting personnel.

5.13     Counterparts.
         ------------

(A)      This Agreement may be executed in any number of counterparts  delivered
         through facsimile transmission.

(B)      All   executed    counterparts    shall    constitute   one   Agreement
         notwithstanding  that  all  signatories  are  not  signatories  to  the
         original or the same counterpart.

                                      -76-
<PAGE>

5.14     License.
         -------

(A)      (1)      This Agreement is the property of Yankees.

         (2)      The use hereof by the Parties is authorized  hereby solely for
                  purposes  of this  transaction  and,  the use of this  form of
                  agreement or of any derivation  thereof without Yankees' prior
                  written permission is prohibited.

         (3)      This  Agreement  shall not be construed  more  stringently  or
                  interpreted   less   favorably   against   Yankees'  based  on
                  authorship.

(B)      The  Client  hereby  acknowledges  that  Yankees  is  not a  law  firm,
         brokerage  firm  or  otherwise  regulated  entity  and  that it has not
         provided it with any advice,  legal or otherwise,  in conjunction  with
         this Agreement,  but rather, has suggested that it retain legal counsel
         for such  purposes  and that it rely solely on its own  experience  and
         advisors in evaluating or interpreting this Agreement.

         In Witness Whereof, the Parties have executed this Agreement, effective
as of the last date set forth below.

Signed, Sealed & Delivered
         In Our Presence

                                               Funds America Finance Corporation

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

____________________________              By:      /s/ Kim A. Naimoli
                                                    Kim A. Naimoli, President

Dated:  August 4, 1999

                                                     The Yankee Companies, Inc.

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

____________________________               By:      /s/ Leonard M. Tucker
                                                Leonard Miles Tucker, President

Dated:  August 4, 1999

                                      -77-

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