Document:

EXHIBIT 10.1

                         COMMON STOCK PURCHASE AGREEMENT

         This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is dated as of
January 10, 2001 by and between SurgiLight, Inc., a Delaware corporation (the
"Company"), and St. Annes Investments Ltd. (the "Purchaser").

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to Purchaser from
time to time as provided herein, and Purchaser shall purchase, up to the
$30,000,000 of Common Stock (as defined below) and Warrants (as defined below);
and

         WHEREAS, such investments will be made by the Purchaser as statutory
underwriter of a registered indirect primary offering of such Common Stock by
the Company.

         NOW, THEREFORE, in consideration of the foregoing premises, and the
promises and covenants herein contained, the receipt and sufficiency of which
are hereby acknowledged by the parties hereto, the parties, intending to be
legally bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Section 1.1. Certain Definitions.

                  (a) "Draw Down" shall have the meaning assigned to such term
         in Section 6.1(a) hereof.

                  (b) "Draw Down Pricing Period" shall mean a period of
         twenty-two (22) consecutive Trading Days beginning on the date
         specified in the Draw Down Notice (as defined in Section 6.1(e)
         hereof); provided, however, the Draw Down Pricing Period shall not
         begin before the day on which receipt of such notice is delivered
         pursuant to Section 9.4 herein.

                  (c) "Effective Date" shall mean the date the Registration
         Statement of the Company covering the Shares being subscribed for
         hereby is declared effective by the Securities and Exchange Commission
         (the "SEC").

                  (d) "GAAP" shall mean the United States Generally Accepted
         Accounting Principles as those conventions, rules and procedures are
         determined by the Financial Accounting Standards Board and its
         predecessor agencies.

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                  (e) "Investment Amount" shall have the meaning assigned to
         such term in Section 6.1(e) hereof.

                  (f) "Material Adverse Effect" shall mean any adverse effect on
         the business, operations, properties, prospects or financial condition
         of the Company that is material and adverse to the Company and its
         subsidiaries and affiliates, taken as a whole and/or any condition,
         circumstance, or situation that would prohibit or otherwise materially
         interfere with the ability of the Company to perform any of its
         material obligations under this Agreement or the Registration Rights
         Agreement or to perform its obligations under any other Material
         Agreement (as defined in Section 3.1(u)).

                  (h) "Principal Market" shall mean initially the OTC Bulletin
         Board and shall include the American Stock Exchange, Nasdaq Small-Cap
         Market, Nasdaq National Market or the New York Stock Exchange if the
         Company becomes listed and trades on such market or exchange after the
         date hereof.

                  (i) "Purchase Price" shall mean 94% of the VWAP on the date in
         question.

                  (j) "Registration Statement" shall mean the registration
         statement under the Securities Act of 1933, as amended (the "Securities
         Act"), to be filed with the Securities and Exchange Commission for the
         registration of the Shares pursuant to the Registration Rights
         Agreement attached hereto as Exhibit A (the "Registration Rights
         Agreement).

                  (k) "SEC Documents" shall mean the Company's latest Form 10-K
         or Form 10-KSB as of the time in question, all Forms 10-Q or 10-QSB and
         8-K filed thereafter, and the Proxy Statement for its latest fiscal
         year as of the time in question until such time as the Company no
         longer has an obligation to maintain the effectiveness of a
         Registration Statement as set forth in the Registration Rights
         Agreement.

                  (l) "Settlement Period" shall have the meaning assigned to
         such term in Section 6.1(b).

                  (m) "Shares" shall mean, collectively, the shares of Common
         Stock of the Company being subscribed for hereunder (the "Draw Down
         Shares") and those shares of Common Stock issuable to the Purchaser
         upon exercise of the Warrant (the "Warrant Shares").

                  (n) "Threshold Price" shall mean the price per Share
         designated by the Company as the lowest VWAP during any Draw Down
         Pricing Period at which the Company will sell its Common Stock in
         accordance with this Agreement.

                  (o) "Trading Day" shall mean any day on which the Principal
         Market is open for business.

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                  (p) "VWAP" shall mean the daily volume weighted average price
         of the Company's Common Stock on the Principal Market as reported by
         Bloomberg Financial L.P. (based on a trading day from 9:30 am EST to
         4:02 pm EST) using the VAP function on the date in question.

                  (q) "Warrant" shall mean the meaning assigned to such term in
         Section 5.2(f) hereof.

                                   ARTICLE II

                        PURCHASE AND SALE OF COMMON STOCK

         Section 2.1. Purchase and Sale of Stock. Subject to the terms and
conditions of this Agreement, the Company may sell and issue to the Purchaser
and the Purchaser shall be obligated to purchase from the Company up to an
aggregate purchase price of thirty million dollars ($30,000,000) of the
Company's Common Stock (the "Commitment Amount"), $0.001 par value per share
(the "Common Stock"), and the Warrant, based on Draw Downs of up to two million
dollars ($2,000,000) per Draw Down.

         Section 2.2. The Shares. The Company has authorized and has reserved
and covenants to continue to reserve, free of preemptive rights and other
similar contractual rights of stockholders, a sufficient number of its
authorized but unissued shares of Common Stock to cover the Shares to be issued
in connection with all Draw Downs requested under this Agreement. Anything in
this Agreement to the contrary notwithstanding, the Company may not make a Draw
Down to the extent that such Draw Down equals or exceeds a number of shares
equal to or greater than 8% of the then outstanding shares of Common Stock.

         Section 2.3. Purchase Price and Initial Closing. The Company agrees to
issue and sell to the Purchaser and, in consideration of and in express reliance
upon the representations, warranties, covenants, terms and conditions of this
Agreement, the Purchaser agrees to purchase that number of the Shares to be
issued in connection with each Draw Down. The delivery of executed documents
under this Agreement and the other agreements referred to herein and the payment
of the fees set forth in Article II of the Escrow Agreement, attached as Exhibit
B hereto, (the "Initial Closing") shall take place at the offices of Epstein
Becker & Green, P.C., 250 Park Avenue, New York, New York 10177 (i) within
fifteen (15) days from the date hereof, or (ii) such other time and place or on
such date as the Purchaser and the Company may agree upon (the "Initial Closing
Date"). Each party shall deliver all documents, instruments and writings
required to be delivered by such party pursuant to this Agreement at or prior to
the Initial Closing.

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                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         Section 3.1. Representation and Warranties of the Company. The Company
hereby makes the following representations and warranties to the Purchaser:

                  (a) Organization, Good Standing and Power. The Company is a
         corporation duly incorporated validly existing and in good standing
         under the laws of the State of Delaware and has all requisite corporate
         authority to own, lease and operate its properties and assets and to
         carry on its business as now being conducted. The Company does not have
         any subsidiaries and does not own more than fifty percent (50%) of or
         control any other business entity except as set forth in the SEC
         Documents. The Company is duly qualified to do business and is in good
         standing as a foreign corporation in every jurisdiction in which the
         nature of the business conducted or property owned by it makes such
         qualification necessary, other than those in which the failure so to
         qualify would not have a Material Adverse Effect.

                  (b) Authorization, Enforcement. (i) The Company has the
         requisite corporate power and corporate authority to enter into and
         perform its obligations under this Agreement, the Registration Rights
         Agreement, the Escrow Agreement (collectively, the "Transaction
         Documents") and to issue the Draw Down Shares pursuant to their
         respective terms, (ii) the execution and delivery of the Transaction
         Documents by the Company and the consummation by it of the transactions
         contemplated hereby and thereby have been duly authorized by all
         necessary corporate action and no further consent or authorization of
         the Company or its Board of Directors or stockholders is required, and
         (iii) the Transaction Documents have been duly executed and delivered
         by the Company and at the Initial Closing shall constitute valid and
         binding obligations of the Company enforceable against the Company in
         accordance with their terms, except as such enforceability may be
         limited by applicable bankruptcy, insolvency, reorganization,
         moratorium, liquidation, conservatorship, receivership or similar laws
         relating to, or affecting generally the enforcement of, creditors'
         rights and remedies or by other equitable principles of general
         application. The Company has duly and validly authorized and reserved
         for issuance shares of Common Stock sufficient in number for the
         issuance of the Draw Down Shares.

                  (c) Capitalization. Except as set forth on Schedule 3.1(c),
         the authorized capital stock of the Company consists of 30,000,000
         shares of Common Stock of which 21,490,000 shares are issued and
         outstanding and no shares of preferred stock are issued and
         outstanding. All of the outstanding shares of the Company's Common
         Stock have been duly and validly authorized and are fully paid and
         non-assessable, except as set forth in the SEC Documents. Except as set
         forth in this Agreement and the Registration Rights Agreement and as
         set forth in the SEC Documents, or on Schedule 3.1(c) hereto, no shares
         of Common Stock are entitled to preemptive rights or registration
         rights and there are no outstanding options, warrant, scrip, rights to
         subscribe to, calls or commitments of any character whatsoever relating
         to, or securities or rights convertible

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         into, any shares of capital stock of the Company. Furthermore, except
         as set forth in this Agreement and as set forth in the SEC Documents or
         on Schedule 3.1(c), there are no contracts, commitments,
         understandings, or arrangements by which the Company is or may become
         bound to issue additional shares of the capital stock of the Company or
         options, securities or rights convertible into shares of capital stock
         of the Company. Except as set forth on Schedule 3.1(c), the Company is
         not a party to any agreement granting registration rights to any person
         with respect to any of its equity or debt securities. Except as set
         forth on Schedule 3.1(c), the Company is not a party to, and it has no
         knowledge of, any agreement restricting the voting or transfer of any
         shares of the capital stock of the Company. Except as set forth in the
         SEC Documents or on Schedule 3.1(c) hereto, the offer and sale of all
         capital stock, convertible securities, rights, warrants, or options of
         the Company issued prior to the Initial Closing complied with all
         applicable federal and state securities laws, and to the Company's
         knowledge, no stockholder has a right of rescission or damages with
         respect thereto which would have a Material Adverse Effect on the
         Company's financial condition or operating results. The Company has
         made available to the Purchaser true and correct copies of the
         Company's articles or certificate of incorporation as in effect on the
         date hereof (the "Charter"), and the Company's bylaws as in effect on
         the date hereof (the "Bylaws"). The Company has not received any notice
         from the Principal Market questioning or threatening the continued
         inclusion of the Common Stock on such market.

                  (d) Issuance of Shares. The Shares to be issued under this
         Agreement have been duly authorized by all necessary corporate action
         and, when paid for and issued in accordance with the terms hereof and
         the Warrant, the Shares shall be validly issued and outstanding, fully
         paid and non-assessable, and the Purchaser shall be entitled to all
         rights accorded to a holder of Common Stock.

                  (e) No Conflicts. Except as set forth on Schedule 3.1(e), the
         execution, delivery and performance of this Agreement by the Company
         and the consummation by the Company of the transactions contemplated
         herein do not and will not (i) violate any provision of the Company's
         Charter or Bylaws, (ii) conflict with, or constitute a default (or an
         event which with notice or lapse of time or both would become a
         default) under, or give to others any rights of termination, amendment,
         acceleration or cancellation of, any agreement, mortgage, deed of
         trust, indenture, note, bond, license, lease agreement, instrument or
         obligation to which the Company is a party, (iii) create or impose a
         lien, charge or encumbrance on any property of the Company under any
         agreement or any commitment to which the Company is a party or by which
         the Company is bound or by which any of its respective properties or
         assets are bound, or (iv) result in a violation of any federal, state,
         local or other foreign statute, rule, regulation, order, judgment or
         decree (including any federal or state securities laws and regulations)
         applicable to the Company or any of its subsidiaries or by which any
         property or asset of the Company or any of its subsidiaries are bound
         or affected, except, in all cases, for such conflicts, defaults,
         termination, amendments, accelerations, cancellations and violations as
         would not, individually or in the aggregate, have a Material Adverse
         Effect. The business of the Company and its subsidiaries is not being
         conducted in violation of any laws, ordinances or regulations of any
         governmental entity, except for possible violations

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         which singularly or in the aggregate do not and will not have a
         Material Adverse Effect. The Company is not required under any federal,
         state or local law, rule or regulation to obtain any consent,
         authorization or order of, or make any filing or registration with, any
         court or governmental agency in order for it to execute, deliver or
         perform any of its obligations under this Agreement, or issue and sell
         the Shares in accordance with the terms hereof (other than any filings
         which may be required to be made by the Company with the SEC or state
         securities administrators subsequent to the Initial Closing and any
         registration statement which may be filed pursuant hereto); provided
         that, for purpose of the representation made in this sentence, the
         Company is assuming and relying upon the accuracy of the relevant
         representations and agreements of the Purchaser herein.

                  (f) SEC Documents, Financial Statements. The Common Stock of
         the Company is registered pursuant to Section 12(g) of the Securities
         and Exchange Act of 1934, as amended (the "Exchange Act"), and, except
         as disclosed in the SEC Documents or on Schedule 3.1(f) hereto, the
         Company has timely filed all reports, schedules, forms, statements and
         other documents required to be filed by it with the SEC pursuant to the
         reporting requirements of the Exchange Act, including material filed
         pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the
         foregoing including filings incorporated by reference therein being
         referred to herein as the "SEC Documents"). The Company has delivered
         or made available to the Purchaser, through the EDGAR system or
         otherwise, true and complete copies of the SEC Documents filed with the
         SEC since December 31, 1998. Except as set forth on Schedule 3.1(f),
         the Company has not provided to the Purchaser any information which,
         according to applicable law, rule or regulation, should have been
         disclosed publicly by the Company but which has not been so disclosed,
         other than with respect to the transactions contemplated by this
         Agreement. As of their respective filing dates, the SEC Documents
         complied in all material respects with the requirements of the Exchange
         Act or the Securities Act, as applicable, and the rules and regulations
         of the SEC promulgated thereunder applicable to such documents, and, as
         of their respective filing dates, none of the SEC Documents contained
         any untrue statement of a material fact or omitted to state a material
         fact required to be stated therein or necessary in order to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading. The financial statements of the Company included
         in the SEC Documents comply as to form in all material respects with
         applicable accounting requirements under GAAP and the published rules
         and regulations of the SEC or other applicable rules and regulations
         with respect thereto. Such financial statements have been prepared in
         accordance with GAAP applied on a consistent basis during the periods
         involved (except (i) as may be otherwise indicated in such financial
         statements or the notes thereto or (ii) in the case of unaudited
         interim statements, to the extent they may not include footnotes or may
         be condensed or summary statements), and fairly present in all material
         respects the financial position of the Company and its subsidiaries as
         of the dates thereof and the results of operations and cash flows for
         the periods then ended (subject, in the case of unaudited statements,
         to normal year-end audit adjustments).

                  (g) Subsidiaries. The SEC Documents or Schedule 3.1(g) hereto
         sets forth each subsidiary of the Company, showing the jurisdiction of
         its incorporation or organization and showing the percentage of the
         Company's ownership of the outstanding

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         stock or other interests of such subsidiary. For the purposes of this
         Agreement, "subsidiary" shall mean any corporation or other entity of
         which at least a majority of the securities or other ownership
         interests having ordinary voting power (absolutely or contingently) for
         the election of directors or other persons performing similar functions
         are at the time owned directly or indirectly by the Company and/or any
         of its other subsidiaries. All of the issued and outstanding shares of
         capital stock of each subsidiary have been duly authorized and validly
         issued, and are fully paid and non-assessable. There are no outstanding
         preemptive, conversion or other rights, options, warrants or agreements
         granted or issued by or binding upon any subsidiary for the purchase or
         acquisition of any shares of capital stock of any subsidiary or any
         other securities convertible into, exchangeable for or evidencing the
         rights to subscribe for any shares of such capital stock. Neither the
         Company nor any subsidiary is subject to any obligation (contingent or
         otherwise) to repurchase or otherwise acquire or retire any shares of
         the capital stock of any subsidiary or any convertible securities,
         rights, warrants or options of the type described in the preceding
         sentence. Neither the Company nor any subsidiary is a party to, nor has
         any knowledge of, any agreement restricting the voting or transfer of
         any shares of the capital stock of any subsidiary.

                  (h) No Material Adverse Effect. Since the date of the
         financial statement contained in the most recently filed Form 10-Q (or
         10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no
         Material Adverse Effect has occurred or exists with respect to the
         Company, except as disclosed in the SEC Documents or on Schedule 3.1(h)
         hereto.

                  (i) No Undisclosed Liabilities. Except as disclosed in the SEC
         Documents or on Schedule 3.1(i) hereto, neither the Company nor any of
         its subsidiaries has any liabilities, obligations, claims or losses
         (whether liquidated or unliquidated, secured or unsecured, absolute,
         accrued, contingent or otherwise) that would be required to be
         disclosed on a balance sheet of the Company or any subsidiary
         (including the notes thereto) in conformity with GAAP which are not
         disclosed in the SEC Documents, other than those incurred in the
         ordinary course of the Company's or its subsidiaries' respective
         businesses since such date and which, individually or in the aggregate,
         do not or would not have a Material Adverse Effect on the Company or
         its subsidiaries.

                  (j) No Undisclosed Events or Circumstances. Since the date of
         the financial statement contained in the most recently filed Form 10- Q
         (or 10-QSB) or Form 10-K (or 10-KSB), whichever is most current, no
         event or circumstance has occurred or exists with respect to the
         Company or its businesses, properties, prospects, operations or
         financial condition, that, under applicable law, rule or regulation,
         requires public disclosure or announcement prior to the date hereof by
         the Company but which has not been so publicly announced or disclosed
         in the SEC Documents.

                  (k) Indebtedness. The SEC Documents or Schedule 3.1(k) hereto
         sets forth as of the date hereof all outstanding secured and unsecured
         Indebtedness of the Company or any subsidiary, or for which the Company
         or any subsidiary has commitments. For the purposes of this Agreement,
         "Indebtedness" shall mean (A) any

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         liabilities for borrowed money or amounts owed in excess of $250,000
         (other than trade accounts payable incurred in the ordinary course of
         business), (B) all guaranties, endorsements and contingent obligations
         in respect of Indebtedness of others, whether or not the same are or
         should be reflected in the Company's balance sheet (or the notes
         thereto), except guaranties by endorsement of negotiable instruments
         for deposit or collection or similar transactions in the ordinary
         course of business; and (C) the present value of any lease payments in
         excess of $250,000 due under leases required to be capitalized in
         accordance with GAAP. Neither the Company nor any subsidiary is in
         default with respect to any Indebtedness.

                  (l) Title to Assets. Each of the Company and the subsidiaries
         has good and marketable title to all of its real and personal property
         reflected in the SEC Documents, free of any mortgages, pledges,
         charges, liens, security interests or other encumbrances, except for
         those indicated in the SEC Documents or on Schedule 3.1(1) hereto or
         such that do not cause a Material Adverse Effect. All said leases of
         the Company and each of its subsidiaries are valid and subsisting and
         in full force and effect.

                  (m) Actions Pending. There is no action, suit, claim,
         investigation or proceeding pending or, to the knowledge of the
         Company, threatened against the Company or any subsidiary which
         questions the validity of this Agreement or the transactions
         contemplated hereby or any action taken or to be taken pursuant hereto
         or thereto. Except as set forth in the SEC Documents or on Schedule
         3.1(m) hereto, there is no action, suit, claim, investigation or
         proceeding pending or, to the knowledge of the Company, threatened,
         against or involving the Company, any subsidiary or any of their
         respective properties or assets. There are no outstanding orders,
         judgments, injunctions, awards or decrees of any court, arbitrator or
         governmental or regulatory body against the Company or any subsidiary.

                  (n) Compliance with Law. The Company and each of its
         subsidiaries have all franchises, permits, licenses, consents and other
         governmental or regulatory authorizations and approvals necessary for
         the conduct of their respective businesses as now being conducted by
         them unless the failure to possess such franchises, permits, licenses,
         consents and other governmental or regulatory authorizations and
         approvals, individually or in the aggregate, could not reasonably be
         expected to have a Material Adverse Effect.

                  (o) Taxes. The Company and each subsidiary has filed all Tax
         Returns which it is required to file under applicable laws; all such
         Tax Returns are true and accurate and have been prepared in compliance
         with all applicable laws; the Company has paid all Taxes due and owing
         by it or any subsidiary (whether or not such Taxes are required to be
         shown on a Tax Return) and has withheld and paid over to the
         appropriate taxing authorities all Taxes which it is required to
         withhold from amounts paid or owing to any employee, stockholder,
         creditor or other third parties; and since December 31, 1999, the
         charges, accruals and reserves for Taxes with respect to the Company
         (including any provisions for deferred income taxes) reflected on the
         books of the

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         Company are adequate to cover any Tax liabilities of the Company if its
         current tax year were treated as ending on the date hereof.

                  No claim has been made by a taxing authority in a jurisdiction
         where the Company does not file tax returns that the Company or any
         subsidiary is or may be subject to taxation by that jurisdiction. There
         are no foreign, federal, state or local tax audits or administrative or
         judicial proceedings pending or being conducted with respect to the
         Company or any subsidiary; no information related to Tax matters has
         been requested by any foreign, federal, state or local taxing
         authority; and, except as disclosed above, no written notice indicating
         an intent to open an audit or other review has been received by the
         Company or any subsidiary from any foreign, federal, state or local
         taxing authority. There are no material unresolved questions or claims
         concerning the Company's Tax liability. The Company (A) has not
         executed or entered into a closing agreement pursuant to ss. 7121 of
         the Internal Revenue Code or any predecessor provision thereof or any
         similar provision of state, local or foreign law; and (B) has not
         agreed to or is required to make any adjustments pursuant to ss. 481
         (a) of the Internal Revenue Code or any similar provision of state,
         local or foreign law by reason of a change in accounting method
         initiated by the Company or any of its subsidiaries or has any
         knowledge that the IRS has proposed any such adjustment or change in
         accounting method, or has any application pending with any taxing
         authority requesting permission for any changes in accounting methods
         that relate to the business or operations of the Company. The Company
         has not been a United States real property holding corporation within
         the meaning of ss. 897(c)(2) of the Internal Revenue Code during the
         applicable period specified in ss. 897(c)(1)(A)(ii) of the Internal
         Revenue Code.

                  The Company has not made an election under ss. 341(f) of the
         Internal Revenue Code. The Company is not liable for the Taxes of
         another person that is not a subsidiary of the Company under (A) Treas.
         Reg. ss. 1.1502-6 (or comparable provisions of state, local or foreign
         law), (B) as a transferee or successor, (C) by contract or indemnity or
         (D) otherwise. The Company is not a party to any tax sharing agreement.
         The Company has not made any payments, is not obligated to make
         payments nor is it a party to an agreement that could obligate it to
         make any payments that would not be deductible under ss. 280G of the
         Internal Revenue Code.

                  For purposes of this Section 3.1(o):

                  "IRS" means the United States Internal Revenue Service.

                  "Tax" or "Taxes" means federal, state, county, local, foreign,
         or other income, gross receipts, ad valorem, franchise, profits, sales
         or use, transfer, registration, excise, utility, environmental,
         communications, real or personal property, capital stock, license,
         payroll, wage or other withholding, employment, social security,
         severance, stamp, occupation, alternative or add-on minimum, estimated
         and other taxes of any kind whatsoever (including, without limitation,
         deficiencies, penalties, additions to tax, and interest attributable
         thereto) whether disputed or not.

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                  "Tax Return" means any return, information report or filing
         with respect to Taxes, including any schedules attached thereto and
         including any amendment thereof.

                  (p) Certain Fees. Except as set forth on Schedule 3.1(p)
         hereto, no brokers, finders or financial advisory fees or commissions
         will be payable by the Company or any subsidiary with respect to the
         transactions contemplated by this Agreement.

                  (q) Disclosure. To the best of the Company's knowledge,
         neither this Agreement or the Schedules hereto nor any other documents,
         certificates or instruments furnished to the Purchaser by or on behalf
         of the Company or any subsidiary in connection with the transactions
         contemplated by this Agreement contains any untrue statement of a
         material fact or omits to state a material fact necessary in order to
         make the statements made herein or therein, in the light of the
         circumstances under which they were made herein or therein, not
         misleading.

                  (r) Operation of Business. The Company and each of the
         subsidiaries owns or possesses all patents, trademarks, service marks,
         trade names, copyrights, licenses and authorizations as set forth in
         the SEC Documents or on Schedule 3.1(r) hereto, and all rights with
         respect to the foregoing, which are necessary for the conduct of its
         business as now conducted without any conflict with the rights of
         others.

                  (s) Insurance. Except as disclosed in the SEC Documents or on
         Schedule 3.1(s) hereto, the Company carries or will have the benefit of
         insurance in such amounts and covering such risks as is adequate for
         the conduct of its business and the value of its properties and as is
         customary for companies engaging in similar businesses and similar
         industries.

                  (t) Books and Records. The records and documents of the
         Company and its subsidiaries accurately reflect in all material
         respects the information relating to the business of the Company and
         the subsidiaries, the location and collection of their assets, and the
         nature of all transactions giving rise to the obligations or accounts
         receivable of the Company or any subsidiary.

                  (u) Material Agreements. Except as set forth in the SEC
         Documents, or on Schedule 3.1(u) hereto, neither the Company nor any
         subsidiary is a party to any written or oral contract, instrument,
         agreement, commitment, obligation, plan or arrangement, a copy of which
         would be required to be filed with the SEC as an exhibit to a
         registration statement on Form S-1 or other applicable form
         (collectively, "Material Agreements") if the Company or any subsidiary
         were registering securities under the Securities Act. Except as set
         forth on Schedule 3.1(u), the Company and each of its subsidiaries has
         in all material respects performed all the obligations required to be
         performed by them to date under the foregoing agreements, have received
         no notice of default and, to the best of the Company's knowledge are
         not in default under any Material Agreement now in effect, the result
         of which could cause a Material Adverse Effect. Except as set forth in
         the SEC Documents, no written or oral contract, instrument,

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         agreement, commitment, obligation, plan or arrangement of the Company
         or of any subsidiary limits or shall limit the payment of dividends on
         the Company's Common Stock.

                  (v) Transactions with Affiliates. Except as set forth in the
         SEC Documents or on Schedule 3.1(v) hereto, there are no loans, leases,
         agreements, contracts, royalty agreements, management contracts or
         arrangements or other continuing transactions exceeding $100,000
         between (A) the Company, any subsidiary or any of their respective
         customers or suppliers on the one hand, and (B) on the other hand, any
         officer, employee, consultant or director of the Company, or any of its
         subsidiaries, or any person owning 5% or more of the capital stock of
         the Company or any subsidiary or any member of the immediate family of
         such officer, employee, consultant, director or stockholder or any
         corporation or other entity controlled by such officer, employee,
         consultant, director or stockholder, or a member of the immediate
         family of such officer, employee, consultant, director or stockholder.

                  (w) Securities Laws. The Company has complied and will comply
         with all applicable federal, Florida and New York securities laws in
         connection with the offer, issuance and sale of the Shares hereunder.
         Neither the Company nor anyone acting on its behalf, directly or
         indirectly, has or will sell, offer to sell or solicit offers to buy
         the Shares or similar securities to, or solicit offers with respect
         thereto from, or enter into any preliminary conversations or
         negotiations relating thereto with, any person (other than the
         Purchaser), so as to bring the issuance and sale of the Shares under
         the registration provisions of the Securities Act and applicable state
         securities laws. Neither the Company nor any of its affiliates, nor any
         person acting on its or their behalf, has engaged in any form of
         general solicitation or general advertising (within the meaning of
         Regulation D under the Securities Act) in connection with the offer or
         sale of the Shares.

                  (x) Employees. Neither the Company nor any subsidiary has any
         collective bargaining arrangements or agreements covering any of its
         employees. Except as set forth in the SEC Documents or on Schedule
         3.1(x) hereto, neither the Company nor any subsidiary is in breach of
         any employment contract, agreement regarding proprietary information,
         noncompetition agreement, nonsolicitation agreement, confidentiality
         agreement, or any other similar contract or restrictive covenant,
         relating to the right of any officer, employee or consultant to be
         employed or engaged by the Company or such subsidiary. Since the date
         of the December 31, 1999 Form 10-K (or 10-KSB), no officer, consultant
         or key employee of the Company or any subsidiary whose termination,
         either individually or in the aggregate, could have a Material Adverse
         Effect, has terminated or, to the knowledge of the Company, has any
         present intention of terminating his or her employment or engagement
         with the Company or any subsidiary.

                  (y) Absence of Certain Developments. Except as disclosed in
         SEC Documents or on Schedule 3.1(y) hereto, since the date of the
         financial statement contained in the most recently filed Form 10-Q (or
         10-QSB) or Form 10-K (or 10KSB), whichever is most current, neither the
         Company nor any subsidiary has:

                                       11
<PAGE>

                           (i) issued any stock, bonds or other corporate
                  securities or any rights, options or warrants with respect
                  thereto;

                           (ii) borrowed any amount or incurred or become
                  subject to any liabilities (absolute or contingent) except
                  current liabilities incurred in the ordinary course of
                  business which are comparable in nature and amount to the
                  current liabilities incurred in the ordinary course of
                  business during the comparable portion of its prior fiscal
                  year, as adjusted to reflect the current nature and volume of
                  the Company's or such subsidiary's business;

                           (iii) discharged or satisfied any lien or encumbrance
                  or paid any obligation or liability (absolute or contingent),
                  other than current liabilities paid in the ordinary course of
                  business;

                           (iv) declared or made any payment or distribution of
                  cash or other property to stockholders with respect to its
                  stock, or purchased or redeemed, or made any agreements so to
                  purchase or redeem, any shares of its capital stock;

                           (v) sold, assigned or transferred any other tangible
                  assets, or canceled any debts or claims, except in the
                  ordinary course of business;

                           (vi) sold, assigned or transferred any patent rights,
                  trademarks, trade names, copyrights, trade secrets or other
                  intangible assets or intellectual property rights, or
                  disclosed any proprietary confidential information to any
                  person except to customers in the ordinary course of business
                  or to the Purchaser or its representatives;

                           (vii) suffered any material losses (except for
                  anticipated losses consistent with prior quarters) or waived
                  any rights of material value, whether or not in the ordinary
                  course of business, or suffered the loss of any material
                  amount of prospective business;

                           (viii) made any changes in employee compensation
                  except in the ordinary course of business and consistent with
                  past practices;

                           (ix) made capital expenditures or commitments
                  therefor that aggregate in excess of $500,000;

                           (x) entered into any other material transaction,
                  whether or not in the ordinary course of business;

                           (xi) suffered any material damage, destruction or
                  casualty loss, whether or not covered by insurance;

                           (xii) experienced any material problems with labor or
                  management in connection with the terms and conditions of
                  their employment; or

                                       12
<PAGE>

                           (xiii) effected any two or more events of the
                  foregoing kind which in the aggregate would be material to the
                  Company or its subsidiaries.

                  (z) Governmental Approvals. Except as set forth in the SEC
         Documents or on Schedule 3.1(z) hereto, and except for the filing of
         any notice prior or subsequent to any Settlement Date that may be
         required under applicable federal or state securities laws (which if
         required, shall be filed on a timely basis), including the filing of a
         registration statement or post-effective amendment pursuant to this
         Agreement, no authorization, consent, approval, license, exemption of,
         filing or registration with any court or governmental department,
         commission, board, bureau, agency or instrumentality, domestic or
         foreign, is or will be necessary for, or in connection with, the
         delivery of the Shares, or for the performance by the Company of its
         obligations under this Agreement.

                  (aa) Use of Proceeds. The proceeds from the sale of the Shares
         will be used by the Company and its subsidiaries for general corporate
         purposes.

                  (bb) Acknowledgment Regarding Purchaser's Purchase of Shares.
         Company acknowledges and agrees that Purchaser is acting solely in the
         capacity of arm's length purchaser with respect to this Agreement and
         the transactions contemplated hereunder. The Company further
         acknowledges that the Purchaser is not acting as a financial advisor or
         fiduciary of the Company (or in any similar capacity) with respect to
         this Agreement and the transactions contemplated hereunder. The Company
         further represents to the Purchaser that the Company's decision to
         enter into this Agreement has been based solely on (a) the Purchaser's
         representations and warranties in Section 3.2, and (b) the independent
         evaluation by the Company and its own representatives and counsel.

                  (cc) Brokers and Finders Fees. Except as set forth on Schedule
         3.1(cc), the Company does not owe any broker or finder any fees in
         connection with the transaction contemplated under this Agreement.

         Section 3.2. Representations and Warranties of the Purchaser. The
Purchaser hereby makes the following representations and warranties to the
Company:

                  (a) Organization and Standing of the Purchaser. The Purchaser
         is a corporation duly incorporated, validly existing and in good
         standing under the laws of the British Virgin Islands.

                  (b) Authorization and Power. The Purchaser has the requisite
         power and authority to enter into and perform the Transaction Documents
         and to purchase the Shares being sold to it hereunder. The execution,
         delivery and performance of the Transaction Documents by Purchaser and
         the consummation by it of the transactions contemplated hereby have
         been duly authorized by all necessary corporate action and at the
         Initial Closing shall constitute valid and binding obligations of the
         Purchaser enforceable against the Purchaser in accordance with their
         terms, except as such enforceability may be limited by applicable
         bankruptcy, insolvency, reorganization,

                                       13
<PAGE>

         moratorium, liquidation, conservatorship, receivership or similar laws
         relating to, or affecting generally the enforcement of, creditors'
         rights and remedies or by other equitable principles of general
         application

                  (c) No Conflicts. The execution, delivery and performance of
         this Agreement and the consummation by the Purchaser of the
         transactions contemplated hereby or relating hereto do not and will not
         (i) result in a violation of the Purchaser's charter documents or
         bylaws or (ii) conflict with, or constitute a default (or an event
         which with notice or lapse of time or both would become a default)
         under, or give to others any rights of termination, amendment,
         acceleration or cancellation of any agreement, indenture or instrument
         to which the Purchaser is a party, or result in a violation of any law,
         rule, or regulation, or any order, judgment or decree of any court or
         governmental agency applicable to the Purchaser or its properties
         (except for such conflicts, defaults and violations as would not,
         individually or in the aggregate, have a Material Adverse Effect on
         Purchaser). The Purchaser is not required to obtain any consent,
         authorization or order of, or make any filing or registration with, any
         court or governmental agency in order for it to execute, deliver or
         perform any of its obligations under this Agreement or to purchase the
         Shares in accordance with the terms hereof.

                  (d) Financial Risks. The Purchaser acknowledges that it is
         able to bear the financial risks associated with an investment in the
         Shares and that it has been given full access to such records of the
         Company and the subsidiaries and to the officers of the Company and the
         subsidiaries as it has deemed necessary or appropriate to conduct its
         due diligence investigation. The Purchaser is capable of evaluating the
         risks and merits of an investment in the Shares by virtue of its
         experience as an investor and its knowledge, experience, and
         sophistication in financial and business matters and the Purchaser is
         capable of bearing the entire loss of its investment in the Shares.

                  (e) Accredited Investor. The Purchaser is an "accredited
         investor" as defined in Regulation D promulgated under the Securities
         Act.

                  (f) General. The Purchaser understands that the Company is
         relying upon the truth and accuracy of the representations, warranties,
         agreements, acknowledgments and understandings of the Purchaser set
         forth herein in order to determine the suitability of the Purchaser to
         acquire the Shares.

                                   ARTICLE IV

                                    COVENANTS

         The Company covenants with the Purchaser as follows:

         Section 4.1. Securities Compliance. If applicable, the Company shall
notify the Principal Market, in accordance with its rules and regulations, of
the transactions contemplated by this Agreement, and shall take all other
necessary action and proceedings as may be required

                                       14
<PAGE>

and permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Shares and the Warrant to the Purchaser or subsequent holders.

         Section 4.2. Registration and Listing. The Company will cause its
Common Stock to continue to be registered under Sections 12(b) or 12(g) of the
Exchange Act, will comply in all respects with its reporting and filing
obligations under the Exchange Act, will comply with all requirements related to
any registration statement filed pursuant to this Agreement, and will not take
any action or file any document (whether or not permitted by the Securities Act
or the Exchange Act or the rules promulgated thereunder) to terminate or suspend
such registration or to terminate or suspend its reporting and filing
obligations under the Exchange Act or Securities Act, except as permitted
herein. The Company will take all action necessary to continue the listing or
trading of its Common Stock on the Principal Market and will comply in all
respects with the Company's reporting, filing and other obligations under the
bylaws or rules of the Principal Market and shall provide the Purchaser with
copies of any correspondence to or from such Principal Market which questions or
threatens delisting of the Common Stock, within three (3) Trading Days of the
Company's receipt thereof, until the Purchaser has disposed of all of the
Shares.

         Section 4.3. Escrow Arrangement. The Company and the Purchaser shall
enter into an escrow arrangement with Epstein Becker & Green, P.C. (the "Escrow
Agent") in the Form of Exhibit B hereto respecting payment against delivery of
the Shares.

         Section 4.4. Registration Rights Agreement. The Company and the
Purchaser shall enter into the Registration Rights Agreement in the Form of
Exhibit A hereto. Before the Purchaser shall be obligated to accept a Draw Down
request from the Company, the Company shall have caused a sufficient number of
shares of Common Stock to be registered to cover the Shares to be issued in
connection with such Draw Down.

         Section 4.5. Accuracy of Registration Statement.On each Settlement
Date, the Registration Statement and the prospectus therein shall not contain
any untrue statement of a material fact or omit to state any material fact to be
required to be stated therein or necessary in order to make the statements
therein not misleading in light of the circumstances under which they were made;
and on such Settlement Date or date of filing of the Registration Statement and
the prospectus therein will not include any untrue statement of a material fact
or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided, however, the Company makes no representations or
warranties as to the information contained in or omitted from the Registration
Statement and the prospectus therein in reliance upon and in conformity with the
information furnished in writing to the Company by the Purchaser specifically
for inclusion in the Registration Statement and the prospectus therein.

         Section 4.6. Compliance with Laws. The Company shall comply, and cause
each subsidiary to comply, with all applicable laws, rules, regulations and
orders, noncompliance with which could have a Material Adverse Effect.

                                       15
<PAGE>

         Section 4.7. Keeping of Records and Books of Account. The Company shall
keep and cause each subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied, reflecting all financial transactions of the Company and its
subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made.

         Section 4.8. Other Agreements. The Company shall not enter into any
agreement the terms of which such agreement would restrict or impair the ability
of the Company to perform its obligations under this Agreement.

         Section 4.9. Notice of Certain Events Affecting Registration;
Suspension of Right to Request a Draw Down. The Company will immediately notify
the Purchaser in writing pursuant to Section 9.4 herein, upon the occurrence of
any of the following events in respect of the Registration Statement or related
prospectus in respect of the Shares: (i) receipt of any request for additional
information from the SEC or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement the response to
which would require any amendments or supplements to the Registration Statement
or related prospectus; (ii) the issuance by the SEC or any other federal or
state governmental authority of any stop order suspending the effectiveness of
the Registration Statement or the initiation of any proceedings for that
purpose; (iii) receipt of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Shares for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in the
Registration Statement or related prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration Statement, related
prospectus or documents so that, in the case of the Registration Statement, it
will not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading, and that in the case of the related prospectus, it will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate. The Company shall
not deliver to the Purchaser any Draw Down Notice during the continuation of any
of the foregoing events. The Company shall promptly make available to the
Purchaser any such supplements or amendments to the related prospectus, at which
time, provided that the registration statement and any supplements and
amendments thereto are then effective, the Company may recommence the delivery
of Draw Down Notices.

         Section 4.10. Consolidation; Merger. The Company shall not, at any time
after the date hereof, effect any merger or consolidation of the Company with or
into, or a transfer of all or substantially all of the assets of the Company to,
another entity (a "Consolidation Event") unless the resulting successor or
acquiring entity (if not the Company) assumes by written instrument or by
operation of law the obligation to deliver to the Purchaser such shares of stock
and/or securities as the Purchaser is entitled to receive pursuant to this
Agreement.

                                       16
<PAGE>

         Section 4.11. Limitation on Future Financing. The Company agrees that,
except as set forth below, it will not enter into any sale of its Common Stock
or securities convertible into cash at a discount to the current market price
until the earlier of (i) 18 months from the Effective Date, or (ii) sixty (60)
days after the entire Commitment Amount has been purchased by the Purchaser. The
foregoing shall not prevent or limit the Company from engaging in any sale of
securities (i) in a registered public offering by the Company which is
underwritten by one or more established investment banks (not including an
equity line type of financing), (ii) in one or more private placements where the
purchasers do not have registration rights, (iii) pursuant to any presently
existing or future employee benefit plan which plan has been or is approved by
the Company's stockholders, (iv) pursuant to any compensatory plan for
directors, officers, full-time employee or key consultant, (v) in connection
with a strategic partnership or other business transaction, the principal
purpose of which is not simply to raise money, or (vi) to which Purchaser gives
its prior written consent, which it shall not unreasonably withhold. Further,
the Purchaser shall have a right of first refusal, to elect to participate, in
such subsequent transaction in the case of (i), (ii) and (vi) above. Such right
of first refusal must be exercised in writing and delivered pursuant to Section
9.4 hereof within seven (7) Trading Days of the Purchaser's receipt of notice of
the proposed terms of such financing.

         The Purchaser covenants with the Company as follows:

         Section 4.12. Compliance with Law. The Purchaser agrees that its
trading activities with respect to shares of the Company's Common Stock will be
in compliance with all applicable state and federal securities laws, rules and
regulations and rules and regulations of the Principal Market on which the
Company's Common Stock is listed. Without limiting the generality of the
foregoing, the Purchaser agrees that it will, whenever required by federal
securities laws, deliver the prospectus included in the Registration Statement
to any purchaser of Shares from the Purchaser.

                                   ARTICLE V

                  CONDITIONS TO INITIAL CLOSING AND DRAW DOWNS

         Section 5.1. Conditions Precedent to the Obligation of the Company to
Sell the Shares. The obligation hereunder of the Company to proceed to close
this Agreement and to issue and sell the Shares to the Purchaser is subject to
the satisfaction or waiver, at or before the Initial Closing, and as of each
Settlement Date of each of the conditions set forth below. These conditions are
for the Company's sole benefit and may be waived by the Company at any time in
its sole discretion.

                  (a) Accuracy of the Purchaser's Representations and
         Warranties. The representations and warranties of the Purchaser shall
         be true and correct in all material respects as of the date when made
         and as of the Initial Closing and as of each Settlement Date as though
         made at that time, except for representations and warranties that speak
         as of a particular date.

                                       17
<PAGE>

                  (b) Performance by the Purchaser. The Purchaser shall have
         performed, satisfied and complied in all material respects with all
         material covenants, agreements and conditions required by this
         Agreement to be performed, satisfied or complied with by the Purchaser
         at or prior to the Initial Closing and as of each Settlement Date.

                  (c) No Injunction. No statute, rule, regulation, executive
         order, decree, ruling or injunction shall have been enacted, entered,
         promulgated or endorsed by any court or governmental authority of
         competent jurisdiction which prohibits the consummation of any of the
         transactions contemplated by this Agreement.

         Section 5.2. Conditions Precedent to the Obligation of the Purchaser to
Close. The obligation hereunder of the Purchaser to perform its obligations
under this Agreement and to purchase the Shares is subject to the satisfaction
or waiver, at or before the Initial Closing, of each of the conditions set forth
below. These conditions are for the Purchaser's sole benefit and may be waived
by the Purchaser at any time in its sole discretion.

                  (a) Accuracy of the Company's Representations and Warranties.
         Each of the representations and warranties of the Company shall be true
         and correct in all material respects as of the date when made and as of
         the Initial Closing as though made at that time (except for
         representations and warranties that speak as of a particular date).

                  (b) Performance by the Company. The Company shall have
         performed, satisfied and complied in all respects with all covenants,
         agreements and conditions required by this Agreement to be performed,
         satisfied or complied with by the Company at or prior to the Initial
         Closing.

                  (c) No Injunction. No statute, rule, regulation, executive
         order, decree, ruling or injunction shall have been enacted, entered,
         promulgated or endorsed by any court or governmental authority of
         competent jurisdiction which prohibits the consummation of any of the
         transactions contemplated by this Agreement.

                  (d) No Proceedings or Litigation. No action, suit or
         proceeding before any arbitrator or any governmental authority shall
         have been commenced, and no investigation by any governmental authority
         shall have been threatened, against the Purchaser or the Company or any
         subsidiary, or any of the officers, directors or affiliates of the
         Company or any subsidiary seeking to restrain, prevent or change the
         transactions contemplated by this Agreement, or seeking damages in
         connection with such transactions.

                  (e) Opinion of Counsel, Etc. At the Initial Closing, the
         Purchaser shall have received an opinion of counsel to the Company,
         dated as of the Initial Closing Date, in the form of Exhibit C hereto.

                  (f) Warrant. On the Initial Closing Date, the Company shall
         issue to the Purchaser a warrant certificate to purchase up to 100,000
         shares of Common Stock.

                                       18
<PAGE>

         The Warrant shall have a term from its initial date of exercise of
         three (3) years. The exercise price of the Warrant shall be 120% of the
         average of the closing bid prices of the Common Stock on the Principal
         Market during the five (5) Trading Days immediately prior to the
         Initial Closing Date. The Common Stock underlying the Warrant will be
         registered in the Registration Statement referred to in Section 4.3
         hereof. The Warrant shall be in the form of Exhibit E hereto.

         Section 5.3. Conditions Precedent to the Obligation of the Purchaser to
Accept a Draw Down and Purchase the Shares. The obligation hereunder of the
Purchaser to accept a Draw Down request and to acquire and pay for the Shares is
subject to the satisfaction at or before each Settlement Date, of each of the
conditions set forth below.

                  (a) Satisfaction of Conditions to Initial Closing. The Company
         shall have satisfied, or the Purchaser shall have waived at the Initial
         Closing, the conditions set forth in Section 5.2 hereof

                  (b) Effective Registration Statement. The Registration
         Statement registering the Shares shall have been declared effective by
         the SEC and shall remain effective on each Settlement Date.

                  (c) No Suspension. Trading in the Company's Common Stock shall
         not have been suspended by the SEC or the Principal Market (except for
         any suspension of trading of limited duration agreed to by the Company,
         which suspension shall be terminated prior to the delivery of each Draw
         Down Notice), and, at any time prior to such Draw Down Notice, trading
         in securities generally as reported on the Principal Market shall not
         have been suspended or limited, or minimum prices shall not have been
         established on securities whose trades are reported on the Principal
         Market unless the general suspension or limitation shall have been
         terminated prior to the delivery of such Draw Down Notice.

                  (d) Material Adverse Effect. No Material Adverse Effect and no
         Consolidation Event where the successor entity has not agreed to
         perform the Company's obligations shall have occurred.

                  (e) Opinion of Counsel. The Purchaser shall have received (i)
         a "down-to-date" letter from the Company's counsel, confirming that
         there is no change from the counsel's previously delivered opinion, or
         else specifying with particularity the reason for any change and an
         opinion as to the additional items specified in Exhibit C hereto, and
         (ii) any other items set forth in the Escrow Agreement.

                                   ARTICLE VI

                                 DRAW DOWN TERMS

         Section 6.1. Draw Down Terms. Subject to the satisfaction of the
conditions set forth in this Agreement, the parties agree as follows:

                                       19
<PAGE>

                  (a) The Company, may, in its sole discretion, issue and
         exercise a draw down (a "Draw Down") during each Draw Down Pricing
         Period, which Draw Down the Purchaser shall be obligated to accept for
         a period of 18 months commencing immediately after the Effective Date
         (the "Commitment Period").

                  (b) Only one Draw Down shall be allowed in each Draw Down
         Pricing Period. There shall be at least five (5) Trading Days between
         Draw Down Pricing Periods. The number of shares of Common Stock
         purchased by the Purchaser with respect to each Draw Down shall be
         determined as set forth in Section 6.1(d) herein and settled on:

                           (i) as to the 1st through the 11th Trading Days after
                  a Draw Down Pricing Period commences (the "First Settlement
                  Period"), on the 13th Trading Day after a Draw Down Pricing
                  Period commences; and

                           (ii) (ii) as to the 12th through the 22nd Trading
                  Days after a Draw Down Pricing Period commences (the "Second
                  Settlement Period"), the 24th Trading Day after a Draw Down
                  Pricing Period. (each, a "Settlement Date" and the First and
                  Second Settlement Periods collectively referred to as
                  "Settlement Periods").

                  In connection with each Draw Down Pricing Period, the Company
         may set the Threshold Price in the Draw Down Notice.

                  (c) The minimum Investment Amount for any Draw Down shall be
         $100,000 and the maximum Investment Amount as to each Draw Down shall
         be the lesser of (i) $2,000,000, and (ii) 4.5% of the average of the
         VWAPs for the Common Stock for the sixty (60) calendar day period
         immediately prior to the applicable Commencement Date (defined below)
         multiplied by the total trading volume in respect of the Common Stock
         for the sixty (60) calendar day period immediately prior to such
         Commencement Date.

                  (d) The number of Shares of Common Stock to be issued on each
         Settlement Date shall be a number of shares equal to the sum of the
         quotients (for each trading day within the Settlement Period) of (x)
         1/22nd of the Investment Amount, and (y) the Purchase Price on each
         Trading Day within the Settlement Period, subject to the following
         adjustments:

                           (i) if the VWAP on a given Trading Day is less than
                  the Threshold Price, then the Investment Amount will be
                  reduced by 1/22nd and that day shall be withdrawn from the
                  Settlement Period; and

                           (ii) trading of the Common Stock on the Principal
                  Market is suspended for more than three (3) hours, in the
                  aggregate, on any Trading Day during the Settlement Period,
                  the Investment Amount shall be reduced by 1/22nd and that day
                  shall be withdrawn from the applicable Settlement Period.

                                       20
<PAGE>

                  (e) The Company must inform the Purchaser by delivering a draw
         down notice, in the form of Exhibit D hereto (the "Draw Down Notice"),
         via facsimile transmission in accordance with Section 9.4 as to the
         amount of the Draw Down (the "Investment Amount") the Company wishes to
         exercise, before the first day of the Draw Down Pricing Period (the
         "Commencement Date"). If the Commencement Date is to be the date of the
         Draw Down Notice, the Draw Down Notice must be delivered to and receipt
         confirmed by the Purchaser at least one hour before trading commences
         on such date. At no time shall the Purchaser be required to purchase
         more than the maximum Investment Amount for a given Draw Down Pricing
         Period so that if the Company chooses not to exercise the maximum
         Investment Amount in a given Draw Down Pricing Period the Purchaser is
         not obligated to and shall not purchase more than the scheduled maximum
         Investment Amount in a subsequent Draw Down Pricing Period.

                  (f) On or before each Settlement Date, the Shares purchased by
         the Purchaser shall be delivered to The Depository Trust Company
         ("DTC") account of the Purchaser or its designees via the Deposit
         Withdrawal Agent Commission ("DWAC") system upon receipt by the Escrow
         Agent of payment for the Draw Down Shares into the Escrow Agent's
         master escrow account, as provided in the Escrow Agreement. The Escrow
         Agent shall be directed to pay the purchase price to the Company, net
         of Seven Hundred Fifty Dollars ($750) as escrow expenses to the Escrow
         Agent and any additional fees as set forth in the Escrow Agreement. The
         delivery of the Shares into the Purchaser's DTC account in exchange for
         payment therefor shall be referred to herein as "Settlement".

                                   ARTICLE VII

                                   TERMINATION

         Section 7.1. Term. The term of this Agreement shall begin on the date
hereof and shall end eighteen (18) months from the Effective Date or as
otherwise set forth in Section 7.2.

         Section 7.2. Other Termination.

                  (a) This Agreement shall terminate upon one (1) Trading Day's
         notice if (i) an event resulting in a Material Adverse Effect has
         occurred and has not been cured for a period of 60 days, (ii) the
         Common Stock is de-listed from the Principal Market unless such
         de-listing is in connection with the listing of the Common Stock on the
         Nasdaq National Market, Nasdaq SmallCap Market, the American Stock
         Exchange or the New York Stock Exchange, or (iii) the Company files for
         protection from creditors under any applicable law.

                                       21
<PAGE>

                  (b) The Company may terminate this Agreement upon one (1)
         Trading Day's notice if the Purchaser shall fail to fund more than one
         properly noticed Draw Down within three (3) Trading Days of a
         Settlement Date.

                  Section 7.3. Effect of Termination. In the event of
         termination by the Company or the Purchaser, written notice thereof
         shall forthwith be given to the other party and the transactions
         contemplated by this Agreement shall be terminated without further
         action by either party. If this Agreement is terminated as provided in
         Section 7.1 or 7.2 herein, this Agreement shall become void and of no
         further force and effect, except for Sections 9.1 and 9.2, and Article
         VIII herein. Nothing in this Section 7.3 shall be deemed to release the
         Company or the Purchaser from any liability for any breach under this
         Agreement, or to impair the rights of the Company or the Purchaser to
         compel specific performance by the other party of its obligations under
         this Agreement.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         Section 8.1. General Indemnity.

                  (a) The Company agrees to indemnify and hold harmless the
         Purchaser (and its directors, officers, affiliates, agents, successors
         and assigns) from and against any and all losses, liabilities,
         deficiencies, costs, damages and expenses (including, without
         limitation, reasonable attorneys' fees, charges and disbursements)
         incurred by the Purchaser as a result of any inaccuracy in or breach of
         the representations, warranties or covenants made by the Company
         herein.

                  (b) The Purchaser agrees to indemnify and hold harmless the
         Company and its directors, officers, affiliates, agents, successors and
         assigns from and against any and all losses, liabilities, deficiencies,
         costs, damages and expenses (including, without limitation, reasonable
         attorneys' fees, charges and disbursements) incurred by the Company as
         result of any material inaccuracy in or breach of the representations,
         warranties or covenants made by the Purchaser herein. Notwithstanding
         anything to the contrary herein, the Purchaser shall be liable under
         this Section 8.1 for only that amount as does not exceed the net
         proceeds to the Purchaser as a result of the sale of the Shares.

         Section 8.2. Indemnification Procedure. Any party entitled to
indemnification under this Article VIII (an "Indemnified Party") will give
written notice to the indemnifying party of any matters giving rise to a claim
for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VIII except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an
Indemnified Party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of counsel to the Indemnified Party a conflict of interest
between it and the

                                       22
<PAGE>

indemnifying party may exist with respect of such action, proceeding or claim,
to assume the defense thereof with counsel reasonably satisfactory to the
Indemnified Party. In the event that the indemnifying party advises an
Indemnified Party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or
discontinues its defense at any time after it commences such defense), then the
Indemnified Party may, at its option, defend, settle or otherwise compromise or
pay such action or claim. In any event, unless and until the indemnifying party
elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the Indemnified Party's costs (including reasonable
attorneys' fees, charges and disbursements) and expenses arising out of the
defense, settlement or compromise of any such action, claim or proceeding shall
be losses subject to indemnification hereunder. The Indemnified Party shall
cooperate fully with the indemnifying party in connection with any settlement
negotiations or defense of any such action or claim by the indemnifying party
and shall furnish to the indemnifying party all information reasonably available
to the Indemnified Party, which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party fully apprised at all times
as to the status of the defense or any settlement negotiations with respect
thereto. If the indemnifying party elects to defend any such action or claim,
then the Indemnified Party shall be entitled to participate in such defense with
counsel of its choice at its sole cost and expense. The indemnifying party shall
not be liable for any settlement of any action, claim or proceeding effected
without its prior written consent. Notwithstanding anything in this Article VIII
to the contrary, the indemnifying party shall not, without the Indemnified
Party's prior written consent, settle or compromise any claim or consent to
entry of any judgment in respect thereof which imposes any future obligation on
the Indemnified Party or which does not include, as an unconditional term
thereof, the giving by the claimant or the plaintiff to the Indemnified Party of
a release from all liability in respect of such claim. The indemnification
required by this Article VIII shall be made by periodic payments of the amount
thereof during the course of investigation or defense, as and when bills are
received or expense, loss, damage or liability is incurred, within ten (10)
Trading Days of written notice thereof to the indemnifying party so long as the
Indemnified Party irrevocably agrees to refund such moneys, with interest, if it
is ultimately determined by a court of competent jurisdiction that such party
was not entitled to indemnification. The indemnity agreements contained herein
shall be in addition to (a) any cause of action or similar rights of the
Indemnified Party against the indemnifying party or others, and (b) any
liabilities to which the indemnifying party may be subject.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.1. Fees and Expenses. Each of the parties to this Agreement
shall pay its own fees and expenses related to the transactions contemplated by
this Agreement; except that, the Company shall pay, at the Initial Closing, the
fees and expenses incurred by the Purchaser in connection with the preparation,
negotiation, execution and delivery of this Agreement and the transactions
contemplated hereunder, as further set forth in the Escrow Agreement. In
addition, the Company shall pay all reasonable fees and expenses incurred by the

                                       23
<PAGE>

Purchaser in connection with any subsequent amendments, modifications or waivers
of this Agreement, the Escrow Agreement or the Registration Rights Agreement or
incurred in connection with the enforcement of this Agreement, the Escrow
Agreement and the Registration Rights Agreement, including, without limitation,
all reasonable attorneys' fees and expenses if such subsequent amendment,
modification or waiver is at the request of the Company. The Company shall pay
all stamp or other similar taxes and duties levied in connection with issuance
of the Shares pursuant hereto.

         Section 9.2. Specific Enforcement. The Company and the Purchaser
acknowledge and agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent or cure
breaches of the provisions of this Agreement and to enforce specifically the
terms and provisions hereof or thereof, this being in addition to any other
remedy to which any of them may be entitled by law or equity.

         Section 9.3. Entire Agreement; Amendment. The Transaction Documents
contain the entire understanding of the parties with respect to the matters
covered in the Transaction Documents, neither the Company nor the Purchaser
makes any representations, warranty, covenant or undertaking with respect to
such matters. No provision of this Agreement may be waived or amended other than
by a written instrument signed by the party against whom enforcement of any such
amendment or waiver is sought and no condition to closing any Draw Down in favor
of the Purchaser may be waived by the Purchaser.

         Section 9.4. Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery or facsimile at the address or
number designated below (if delivered on a business day during normal business
hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:

If to the Company:                          12001 Science Drive, Suite 140
                                            Orlando, FL 32826
                                            Attn: J. Lin
                                            Tel: (407) 482-4555
                                            Fax: (407) 482-0505

With copies to:                             The Business Law Group
(which shall not constitute                 205 E. Central Blvd., Suite 601
notice)                                     Orlando, FL  32801
                                            Tel: (407) 835-1234
                                            Fax: (407) 425 0032

                                       24
<PAGE>

If to Purchaser:                            c/o Ultra Finance Ltd.
                                            Grossmuenster 6, P.O. Box 4401
                                            Zurich Ch-8022 Switzerland
                                            Attn: H.U. Bachofen
                                            Fax: 011-411 212 5515

with copies to:                             Epstein Becker & Green P.C.
(which shall not constitute                 250 Park Avenue
notice)                                     New York, NY  10177-1211
                                            Tel: (212) 351-3771
                                            Fax: (212) 661-0989
                                            Attn: Robert F. Charron

         Any party hereto may from time to time change its address for notices
by giving written notice of such changed address to the other party hereto in
accordance herewith. Section 9.5. Waivers. No waiver by either party of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other provisions, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.

         Section 9.6. Headings. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

         Section 9.7. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.
The parties hereto may not amend this Agreement or any rights or obligations
hereunder without the prior written consent of the Company and each Purchaser to
be affected by the amendment. After Initial Closing, the assignment by a party
to this Agreement of any rights hereunder shall not affect the obligations of
such party under this Agreement.

         Section 9.8. No Third Party Beneficiaries.This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

         Section 9.9. Governing Law/Arbitration. This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to the choice of law provisions. The Company and
the Purchaser agree to submit itself to the in personam jurisdiction of the
state and federal courts situated within the Southern District of the State of
New York with regard to any controversy arising out of or relating to this
Agreement. Any dispute under this Agreement or any Exhibit attached hereto shall
be submitted to arbitration under the American Arbitration Association (the
"AAA") in New York City, New York, and shall be finally and conclusively
determined by the decision of a board of arbitration consisting of three (3)
members (hereinafter referred to as the "Board of Arbitration") selected as
according to

                                       25
<PAGE>

the rules governing the AAA. The Board of Arbitration shall meet on consecutive
business days in New York City, New York, and shall reach and render a decision
in writing (concurred in by a majority of the members of the Board of
Arbitration) with respect to the amount, if any, which the losing party is
required to pay to the other party in respect of a claim filed. In connection
with rendering its decisions, the Board of Arbitration shall adopt and follow
the laws of the State of New York. To the extent practical, decisions of the
Board of Arbitration shall be rendered no more than thirty (30) calendar days
following commencement of proceedings with respect thereto. The Board of
Arbitration shall cause its written decision to be delivered to all parties
involved in the dispute. The Board of Arbitration shall be authorized and is
directed to enter a default judgment against any party refusing to participate
in the arbitration proceeding within thirty days of any deadline for such
participation. Any decision made by the Board of Arbitration (either prior to or
after the expiration of such thirty (30) calendar day period) shall be final,
binding and conclusive on the parties to the dispute, and entitled to be
enforced to the fullest extent permitted by law and entered in any court of
competent jurisdiction. The prevailing party shall be awarded its costs,
including attorneys' fees, from the non-prevailing party as part of the
arbitration award. Any party shall have the right to seek injunctive relief from
any court of competent jurisdiction in any case where such relief is available.
The prevailing party in such injunctive action shall be awarded its costs,
including attorney's fees, from the non-prevailing party.

         Section 9.10. Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and shall become effective when counterparts have been signed by
each party and delivered to the other parties hereto, it being understood that
all parties need not sign the same counterpart. Execution may be made by
delivery by facsimile.

         Section 9.11. Publicity. Neither the Company nor the Purchaser shall
issue any press release or otherwise make any public statement or announcement
with respect to this Agreement or the transactions contemplated hereby or the
existence of this Agreement. After the Initial Closing, the Company may issue a
press release or otherwise make a public statement or announcement with respect
to this Agreement or the transactions contemplated hereby or the existence of
this Agreement; provided, however, that prior to issuing any such press release,
making any such public statement or announcement, the Company obtains the prior
consent of the Purchaser, which consent shall not be unreasonably withheld or
delayed.

         Section 9.12. Severability. The provisions of this Agreement are
severable and, in the event that The Board of Arbitration or any court or
officials of any regulatory agency of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in
this Agreement 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 or part of a provision of this Agreement
and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained
herein, so that such provisions would be valid, legal and enforceable to the
maximum extent possible, so long as such construction does not materially
adversely effect the economic rights of either party hereto.

                                       26
<PAGE>

         Section 9.13. Further Assurances. From and after the date of this
Agreement, upon the request of the Purchaser or the Company, each of the Company
and the Purchaser shall execute and deliver such instruments, documents and
other writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of this Agreement.

         Section 9.14. Effectiveness of Agreement. This Agreement shall become
effective only upon satisfaction of the conditions precedent to the Initial
Closing set forth in Article I of the Escrow Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       27
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorize officer as of this 12th day of
January, 2001.

                                            SURGILIGHT, INC.

                                            By: /s/ J. Lin
                                                --------------------------------
                                                J. Lin, President & CEO

                                            ST. ANNES INVESTMENTS LTD.

                                            By: /s/ H.U. Bachofen
                                                --------------------------------
                                                H.U. Bachofen, Director

                                       28
<PAGE>

                                                       EXHIBIT A TO EXHIBIT 10.1

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT, dated as of January 10, 2001
between St. Annes Investments Ltd. ("Purchaser") and SurgiLight, Inc. (the
"Company").

         WHEREAS, simultaneously with the execution and delivery of this
Agreement, pursuant to a Common Stock Purchase Agreement dated as of the date
hereof (the "Purchase Agreement") by and between the Purchaser and the Company,
the Purchaser has committed to purchase up to $30,000,000 of the Company's
Common Stock (terms not defined herein shall have the meanings ascribed to them
in the Purchase Agreement) and a warrant to purchase Common Stock; and

         WHEREAS, the Company desires to grant to the Purchaser the registration
rights set forth herein with respect to the Shares.

         NOW, THEREFORE, the parties hereto mutually agree as follows:

         Section 1. Registrable Securities. As used herein the term "Registrable
Security" means all Shares that have not been (i) sold under the Registration
Statement, (ii) sold under circumstances under which all of the applicable
conditions of Rule 144 (or any similar provision then in force) under the
Securities Act ("Rule 144") are met, (iii) otherwise transferred to persons who
may trade such Shares without restriction under the Securities Act, and the
Company has delivered a new certificate or other evidence of ownership for such
Shares not bearing a restrictive legend or (iv) sold without any time, volume or
manner limitations pursuant to Rule 144(k) (or any similar provision then in
effect) under the Securities Act. The term "Registrable Securities" means any
and/or all of the Shares falling within the foregoing definition of a
"Registrable Security." In the event of any merger, reorganization,
consolidation, recapitalization or other change in corporate structure affecting
the Common Stock, such adjustment shall be deemed to be made in the definition
of "Registrable Security" as is appropriate in order to prevent any dilution or
enlargement of the rights granted pursuant to this Agreement.

         Section 2. Restrictions on Transfer. The Purchaser acknowledges and
understands that in the absence of an effective Registration Statement
authorizing the resale of the Shares as provided herein, the Shares are
"restricted securities" as defined in Rule 144. The Purchaser understands that
no disposition or transfer of the Shares may be made by Purchaser in the absence
of (i) an opinion of counsel to the Purchaser, in form and substance reasonably
satisfactory to the Company, that such transfer may be made without registration
under the Securities Act or (ii) such registration.

         With a view to making available to the Purchaser the benefits of Rule
144, the Company agrees to:

                  (a) comply with the provisions of paragraph (c)(1) of Rule
         144; and

<PAGE>

                  (b) file with the Commission in a timely manner all reports
         and other documents required to be filed by the Company pursuant to
         Section 13 or 15(d) under the Exchange Act; and, if at any time it is
         not required to file such reports but in the past had been required to
         or did file such reports, it will, upon the request of the Purchaser,
         make available other information as required by, and so long as
         necessary to permit sales of, its Registrable Securities pursuant to
         Rule 144.

         Section 3. Registration Rights With Respect to the Shares.

                  (a) The Company agrees that it will prepare and file with the
         Securities and Exchange Commission ("Commission"), within forty-five
         (45) days after the date hereof, a registration statement (on Form S-3
         and/or S-1, or other appropriate form of registration statement) under
         the Securities Act (the "Registration Statement"), at the sole expense
         of the Company (except as provided in Section 3(c) hereof), in respect
         of Purchaser, so as to permit a public offering and resale of the
         Shares under the Securities Act by Purchaser.

                  (b) The Company shall use its best efforts to cause the
         Registration Statement to become effective within the earlier of (i)
         ninety (90) days of the date hereof, or (ii) five (5) days after
         receiving written notice of SEC clearance and will within said five (5)
         days request acceleration of effectiveness. The Company will notify
         Purchaser of the effectiveness of the Registration Statement within one
         Trading Day of such event.

                  (c) The Company will maintain the Registration Statement or
         post-effective amendment filed under this Section 3 hereof effective
         under the Securities Act until the earliest of (i) the date that all
         the Shares have been disposed of pursuant to the Registration
         Statement, (ii) the date that all of the Shares have been sold pursuant
         to the Registration Statement, (iii) the date the holders thereof
         receive an opinion of counsel to the Company, which opinion shall be
         reasonably acceptable to the Purchaser, that the Shares may be sold
         under the provisions of Rule 144 without limitation as to volume, (iv)
         all Shares have been otherwise transferred to persons who may trade
         such shares without restriction under the Securities Act, and the
         Company has delivered a new certificate or other evidence of ownership
         for such Shares not bearing a restrictive legend, or (v) all Shares may
         be sold without any time, volume or manner limitations pursuant to Rule
         144(k) or any similar provision then in effect under the Securities Act
         in the opinion of counsel to the Company, which counsel shall be
         reasonably acceptable to the Purchaser (the "Effectiveness Period").

                  (d) All fees, disbursements and out-of-pocket expenses and
         costs incurred by the Company in connection with the preparation and
         filing of the Registration Statement under subparagraph 3(a) and in
         complying with applicable securities and Blue Sky laws (including,
         without limitation, all attorneys' fees of the Company) shall be borne
         by the Company. The Purchaser shall bear the cost of underwriting
         and/or brokerage discounts, fees and commissions, if any, applicable to
         the Shares being registered and the fees and expenses of its counsel.

                  (e) The Purchaser and its counsel shall have a reasonable
         period, not to exceed five (5) Trading Days, to review the proposed
         Registration Statement or any amendment

                                       2
<PAGE>

         thereto, prior to filing with the Commission, and the Company shall
         provide the Purchaser with copies of any comment letters received from
         the Commission with respect thereto within two (2) Trading Days of
         receipt thereof.

                  (f) The Company shall make reasonably available for inspection
         by Purchaser upon its reasonable request, any underwriter participating
         in any disposition pursuant to the Registration Statement, and any
         attorney, accountant or other agent retained by the Purchaser or any
         such underwriter all relevant financial and other records, pertinent
         corporate documents and properties of the Company and its subsidiaries,
         and cause the Company's officers, directors and employees to supply all
         information reasonably requested by the Purchaser or any such
         underwriter, attorney, accountant or agent in connection with the
         Registration Statement, in each case, as is customary for similar due
         diligence examinations; provided, however, all records, information and
         documents that are designated in writing by the Company, in good faith,
         as confidential, proprietary or containing any material non-public
         information shall be kept confidential by the Purchaser and any such
         underwriter, attorney, accountant or agent, unless such disclosure is
         made pursuant to judicial process in a court proceeding (after first
         giving the Company an opportunity promptly to seek a protective order
         or otherwise limit the scope of the information sought to be disclosed)
         or is required by law, or such records, information or documents become
         available to the public generally or through a third party not in
         violation of an accompanying obligation of confidentiality. If the
         foregoing inspection and information gathering would otherwise disrupt
         the Company's conduct of its business, such inspection and information
         gathering shall, to the maximum extent possible, be coordinated on
         behalf of the Purchaser and the other parties entitled thereto by one
         firm of counsel designed by and on behalf of the majority in interest
         of Purchaser and other parties.

                  (g) The Company shall qualify any of the Shares for sale in
         New York and Florida, if the Purchaser reasonably designates, and shall
         furnish indemnification in the manner provided in Section 6 hereof.
         However, the Company shall not be required to qualify in any state
         which will require an escrow or other restriction relating to the
         Company and/or the sellers, or which will require the Company to
         qualify to do business in such state or require the Company to file
         therein any general consent to service of process.

                  (h) The Company at its expense will supply the Purchaser with
         copies of the Registration Statement and the prospectus included
         therein and other related documents in such quantities as may be
         reasonably requested by the Purchaser.

                  (i) The Company shall not be required by this Section 3 to
         include a Purchaser's Shares in any Registration Statement which is to
         be filed if, in the opinion of counsel for both the Purchaser and the
         Company (or, should they not agree, in the opinion of another counsel
         experienced in securities law matters acceptable to counsel for the
         Purchaser and the Company) the proposed offering or other transfer as
         to which such registration is requested is exempt from applicable
         federal and state securities laws and would result in all purchasers or
         transferees obtaining securities which are not "restricted securities",
         as defined in Rule 144 under the Securities Act.

                                       3
<PAGE>

                  (j) If at any time or from time to time after the effective
         date of the Registration Statement, the Company notifies the Purchaser
         in writing of the existence of a Potential Material Event (as defined
         in Section 3(k) below), the Purchaser shall not offer or sell any
         Shares or engage in any other transaction involving or relating to
         Shares, from the time of the giving of notice with respect to a
         Potential Material Event until the Purchaser receives written notice
         from the Company that such Potential Material Event either has been
         disclosed to the public or no longer constitutes a Potential Material
         Event (the "Suspension Period"). Notwithstanding anything herein to the
         contrary, if a Suspension Period occurs during any periods commencing
         on a Trading Day a Draw Down Notice is deemed delivered and ending ten
         (10) Trading Days following the end of the corresponding Draw Down
         Pricing Period, then the Company must compensate the Purchaser for any
         net decline in the market value of any Shares committed to be purchased
         by the Purchaser through the end of such Suspension Period. Net decline
         shall be calculated as the difference between the highest VWAP during
         the applicable Suspension Period and the VWAP on the Trading Day
         immediately following a properly delivered notice to the Purchaser that
         such Suspension Period has ended. If a Potential Material Event shall
         occur prior to the date the Registration Statement is filed, then the
         Company's obligation to file the Registration Statement shall be
         delayed without penalty for not more than thirty (30) calendar days.
         The Company must give Purchaser notice of the existence of a Potential
         Material Event in writing at least two (2) Trading Days prior to the
         first day of any Suspension Period, if lawful to do so.

                  (k) "Potential Material Event" means any of the following: (i)
         the possession by the Company of material information that is not ripe
         for disclosure in a registration statement, as determined in good faith
         by the Chief Executive Officer or the Board of Directors of the Company
         or that disclosure of such information in the Registration Statement
         would be detrimental to the business and affairs of the Company; or
         (ii) any material engagement or activity by the Company which would, in
         the good faith determination of the Chief Executive Officer or the
         Board of Directors of the Company, be adversely affected by disclosure
         in a registration statement at such time, which determination shall be
         accompanied by a good faith determination by the Chief Executive
         Officer or the Board of Directors of the Company that the Registration
         Statement would be materially misleading absent the inclusion of such
         information.

         Section 4. Cooperation with Company. The Purchaser will cooperate with
the Company in all respects in connection with this Agreement, including timely
supplying all information reasonably requested by the Company (which shall
include all information regarding the Purchaser and proposed manner of sale of
the Registrable Securities required to be disclosed in the Registration
Statement) and executing and returning all documents reasonably requested in
connection with the registration and sale of the Registrable Securities and
entering into and performing its obligations under any underwriting agreement,
if the offering is an underwritten offering, in usual and customary form, with
the managing underwriter or underwriters of such underwritten offering. The
Purchaser shall consent to be named as an underwriter in the Registration
Statement. Purchaser acknowledges that in accordance with current Commission
policy, the Purchaser will be named as the underwriter of the Shares in the
Registration Statement.

                                       4
<PAGE>

         Section 5. Registration Procedures. If and whenever the Company is
required by any of the provisions of this Agreement to effect the registration
of any of the Registrable Securities under the Securities Act, the Company shall
(except as otherwise provided in this Agreement), as expeditiously as possible,
subject to the Purchaser's assistance and cooperation as reasonably required:

                  (a) prepare and file with the Commission such amendments and
         supplements to the Registration Statement and the prospectus used in
         connection therewith as may be necessary to keep such registration
         statement effective and to comply with the provisions of the Securities
         Act with respect to the sale or other disposition of all securities
         covered by such registration statement whenever the Purchaser of such
         Registrable Securities shall desire to sell or otherwise dispose of the
         same (including prospectus supplements with respect to the sales of
         securities from time to time in connection with a registration
         statement pursuant to Rule 415 promulgated under the Securities Act)
         and (ii) take all lawful action such that each of (A) the Registration
         Statement and any amendment thereto does not, when it becomes
         effective, contain an untrue statement of a material fact or omit to
         state a material fact required to be stated therein or necessary to
         make the statements therein not misleading and (B) the prospectus
         forming part of the Registration Statement, and any amendment or
         supplement thereto, does not at any time during the Effectiveness
         Period include an untrue statement of a material fact or omit to state
         a material fact required to be stated therein or necessary to make the
         statements therein, in light of the circumstances under which they were
         made, not misleading;

                  (b) prior to the filing with the Commission of any
         Registration Statement (including any amendments thereto) and the
         distribution or delivery of any prospectus (including any supplements
         thereto), provide draft copies thereof to the Purchaser and reflect in
         such documents all such comments as the Purchaser (and its counsel)
         reasonably may propose and (ii) furnish to the Purchaser such numbers
         of copies of a prospectus including a preliminary prospectus or any
         amendment or supplement to any prospectus, as applicable, in conformity
         with the requirements of the Securities Act, and such other documents,
         as the Purchaser may reasonably request in order to facilitate the
         public sale or other disposition of the securities owned by the
         Purchaser;

                  (c) register and qualify the Registrable Securities covered by
         the Registration Statement under New York and Florida blue sky laws
         (subject to the limitations set forth in Section 3(g) above), and do
         any and all other acts and things which may be reasonably necessary or
         advisable to enable the Purchaser to consummate the public sale or
         other disposition in such jurisdiction of the securities owned by the
         Purchaser, except that the Company shall not for any such purpose be
         required to qualify to do business as a foreign corporation in any
         jurisdiction wherein it is not so qualified or to file therein any
         general consent to service of process;

                  (d) list such Registrable Securities on the Principal Market,
         and any other exchange on which the Common Stock of the Company is then
         listed, if the listing of such Registrable Securities is then permitted
         under the rules of such exchange or the Nasdaq Stock Market;

                                       5
<PAGE>

                  (e) notify the Purchaser at any time when a prospectus
         relating thereto covered by the Registration Statement is required to
         be delivered under the Securities Act, of the happening of any event of
         which it has knowledge as a result of which the prospectus included in
         the Registration Statement, as then in effect, includes an untrue
         statement of a material fact or omits to state a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading in the light of the circumstances then existing, and the
         Company shall prepare and file a curative amendment under Section 5(a)
         as quickly as commercially possible;

                  (f) as promptly as practicable after becoming aware of such
         event, notify the Purchaser who holds Registrable Securities being sold
         (or, in the event of an underwritten offering, the managing
         underwriters) of the issuance by the Commission or any state authority
         of any stop order or other suspension of the effectiveness of the
         Registration Statement at the earliest possible time and take all
         lawful action to effect the withdrawal, recission or removal of such
         stop order or other suspension;

                  (g) cooperate with the Purchaser to facilitate the timely
         preparation and delivery of certificates for the Registrable Securities
         to be offered pursuant to the Registration Statement and enable such
         certificates for the Registrable Securities to be in such denominations
         or amounts, as the case may be, as the Purchaser reasonably may request
         and registered in such names as the Purchaser may request, pursuant to
         the Purchase Agreement.

                  (h) take all such other lawful actions reasonably necessary to
         expedite and facilitate the disposition by the Purchaser of its
         Registrable Securities in accordance with the intended methods therefor
         provided in the prospectus which are customary for issuers to perform
         under the circumstances;

                  (i) in the event of an underwritten offering, promptly include
         or incorporate in a prospectus supplement or post-effective amendment
         to the Registration Statement such information as the managing
         underwriters reasonably agree should be included therein and to which
         the Company does not reasonably object and make all required filings of
         such prospectus supplement or post-effective amendment as soon as
         practicable after it is notified of the matters to be included or
         incorporated in such prospectus supplement or post-effective amendment;
         and

                  (j) maintain a transfer agent for its Common Stock.

         Section 6. Indemnification.

                  (a) The Company agrees to indemnify and hold harmless the
         Purchaser and each person, if any, who controls the Purchaser within
         the meaning of the Securities Act ("Distributing Purchaser") against
         any losses, claims, damages or liabilities, joint or several (which
         shall, for all purposes of this Agreement, include, but not be limited
         to, all reasonable costs of defense and investigation and all
         reasonable attorneys' fees), to which the Distributing Purchaser may
         become subject, under the Securities Act or otherwise, insofar as such
         losses, claims, damages or liabilities (or actions in respect thereof)
         arise out of or are based upon any untrue statement or alleged untrue
         statement of any material fact contained in the Registration

                                       6
<PAGE>

         Statement, or any related preliminary prospectus, final prospectus or
         amendment or supplement thereto, or arise out of or are based upon the
         omission or alleged omission to state therein a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading; provided, however, that the Company will not be liable in
         any such case to the extent that any such loss, claim, damage or
         liability arises out of or is based upon an untrue statement or alleged
         untrue statement or omission or alleged omission made in the
         Registration Statement, preliminary prospectus, final prospectus or
         amendment or supplement thereto in reliance upon, and in conformity
         with, written information furnished to the Company by the Distributing
         Purchaser specifically for use in the preparation thereof. This Section
         6(a) shall not inure to the benefit of any Distributing Purchaser with
         respect to any person asserting such loss, claim, damage or liability
         who purchased the Registrable Securities which are the subject thereof
         if the Distributing Purchaser failed to send or give (in violation of
         the Securities Act or the rules and regulations promulgated thereunder)
         a copy of the prospectus contained in such Registration Statement to
         such person at or prior to the written confirmation to such person of
         the sale of such Registrable Securities, where the Distributing
         Purchaser was obligated to do so under the Securities Act or the rules
         and regulations promulgated thereunder. This indemnity agreement will
         be in addition to any liability which the Company may otherwise have.

                  (b) Each Distributing Purchaser agrees that it will indemnify
         and hold harmless the Company, and each officer, director of the
         Company or person, if any, who controls the Company within the meaning
         of the Securities Act, against any losses, claims, damages or
         liabilities (which shall, for all purposes of this Agreement, include,
         but not be limited to, all reasonable costs of defense and
         investigation and all reasonable attorneys' fees) to which the Company
         or any such officer, director or controlling person may become subject
         under the Securities Act or otherwise, insofar as such losses, claims,
         damages or liabilities (or actions in respect thereof) arise out of or
         are based upon any untrue statement or alleged untrue statement of any
         material fact contained in the Registration Statement, or any related
         preliminary prospectus, final prospectus or amendment or supplement
         thereto, or arise out of or are based upon the omission or the alleged
         omission to state therein a material fact required to be stated therein
         or necessary to make the statements therein not misleading, but in each
         case only to the extent that such untrue statement or alleged untrue
         statement or omission or alleged omission was made in the Registration
         Statement, preliminary prospectus, final prospectus or amendment or
         supplement thereto in reliance upon, and in conformity with, written
         information furnished to the Company by such Distributing Purchaser
         specifically for use in the preparation thereof. This indemnity
         agreement will be in addition to any liability which the Distributing
         Purchaser may otherwise have. Notwithstanding anything to the contrary
         herein, the Distributing Purchaser shall not be liable under this
         Section 6(b) for any amount in excess of the net proceeds to such
         Distributing Purchaser as a result of the sale of Registrable
         Securities pursuant to the Registration Statement.

                  (c) Promptly after receipt by an indemnified party under this
         Section 6 of notice of the commencement of any action, such indemnified
         party will, if a claim in respect thereof is to be made against the
         indemnifying party under this Section 6, notify the indemnifying party
         of the commencement thereof; but the omission so to notify the
         indemnifying party will not relieve the indemnifying party from any
         liability which it may have to any indemnified party except to the
         extent of actual prejudice demonstrated by the indemnifying party. In
         case any such

                                       7
<PAGE>

         action is brought against any indemnified party, and it notifies the
         indemnifying party of the commencement thereof, the indemnifying party
         will be entitled to participate in, and, to the extent that it may
         wish, jointly with any other indemnifying party similarly notified,
         assume the defense thereof, subject to the provisions herein stated and
         after notice from the indemnifying party to such indemnified party of
         its election so to assume the defense thereof, the indemnifying party
         will not be liable to such indemnified party under this Section 6 for
         any legal or other expenses subsequently incurred by such indemnified
         party in connection with the defense thereof other than reasonable
         costs of investigation, unless the indemnifying party shall not pursue
         the action to its final conclusion. The indemnified party shall have
         the right to employ separate counsel in any such action and to
         participate in the defense thereof, but the fees and expenses of such
         counsel shall not be at the expense of the indemnifying party if the
         indemnifying party has assumed the defense of the action with counsel
         reasonably satisfactory to the indemnified party; provided that if the
         indemnified party is the Distributing Purchaser, the fees and expenses
         of such counsel shall be at the expense of the indemnifying party if
         (i) the employment of such counsel has been specifically authorized in
         writing by the indemnifying party, or (ii) the named parties to any
         such action (including any impleaded parties) include both the
         Distributing Purchaser and the indemnifying party and the Distributing
         Purchaser shall have been advised by such counsel that there may be one
         or more legal defenses available to the indemnifying party different
         from or in conflict with any legal defenses which may be available to
         the Distributing Purchaser (in which case the indemnifying party shall
         not have the right to assume the defense of such action on behalf of
         the Distributing Purchaser, it being understood, however, that the
         indemnifying party shall, in connection with any one such action or
         separate but substantially similar or related actions in the same
         jurisdiction arising out of the same general allegations or
         circumstances, be liable only for the reasonable fees and expenses of
         one separate firm of attorneys for the Distributing Purchaser, which
         firm shall be designated in writing by the Distributing Purchaser and
         be approved by the indemnifying party). No settlement of any action
         against an indemnified party shall be made without the prior written
         consent of the indemnified party, which consent shall not be
         unreasonably withheld.

                  All fees and expenses of the indemnified party (including
         reasonable costs of defense and investigation in a manner not
         inconsistent with this Section and all reasonable attorneys' fees and
         expenses) shall be paid to the indemnified party, as incurred, within
         ten (10) Trading Days of written notice thereof to the indemnifying
         party; provided, that the indemnifying party may require such
         indemnified party to undertake to reimburse all such fees and expenses
         to the extent it is finally judicially determined that such indemnified
         party is not entitled to indemnification hereunder.

         Section 7. Contribution. In order to provide for just and equitable
contribution under the Securities Act in any case in which (i) the indemnified
party makes a claim for indemnification pursuant to Section 6 hereof but is
judicially determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that the express provisions of Section 6 hereof provide
for indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any indemnified party, then the Company and the
applicable Distributing Purchaser shall contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject

                                       8
<PAGE>

(which shall, for all purposes of this Agreement, include, but not be limited
to, all reasonable costs of defense and investigation and all reasonable
attorneys' fees), in either such case (after contribution from others) on the
basis of relative fault as well as any other relevant equitable considerations.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or the applicable Distributing Purchaser
on the other hand, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and the Distributing Purchaser agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in this Section 7. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages or
liabilities (or actions in respect thereof) referred to above in this Section 7
shall be deemed to include any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

         Notwithstanding any other provision of this Section 7, in no event
shall any (i) Purchaser be required to undertake liability to any person under
this Section 7 for any amounts in excess of the dollar amount of the net
proceeds to be received by the Purchaser from the sale of the Purchaser's
Registrable Securities (after deducting any fees, discounts and commissions
applicable thereto) pursuant to any Registration Statement under which such
Registrable Securities are to be registered under the Securities Act and (ii)
underwriter be required to undertake liability to any person hereunder for any
amounts in excess of the aggregate discount, commission or other compensation
payable to such underwriter with respect to the Registrable Securities
underwritten by it and distributed pursuant to the Registration Statement.

         Section 8. Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be delivered as set forth
in the Purchase Agreement.

         Section 9. Assignment. Neither this Agreement nor any rights of the
Purchaser or the Company hereunder may be assigned by either party to any other
person. Notwithstanding the foregoing, (a) the provisions of this Agreement
shall inure to the benefit of, and be enforceable by, any transferee of any of
the Common Stock purchased by the Purchaser pursuant to the Purchase Agreement
other than through open-market sales, and (b) upon the prior written consent of
the Company, which consent shall not be unreasonably withheld or delayed in the
case of an assignment to an affiliate of the Purchaser, the Purchaser's interest
in this Agreement may be assigned at any time, in whole or in part, to any other
person or entity (including any affiliate of the Purchaser) who agrees to be
bound hereby.

         Section 10. Counterparts/Facsimile. This Agreement may be executed in
two or more counterparts, each of which shall constitute an original, but all of
which, when together shall constitute but one and the same instrument, and shall
become effective when one or more

                                       9
<PAGE>

counterparts have been signed by each party hereto and delivered to the other
party. In lieu of the original, a facsimile transmission or copy of the original
shall be as effective and enforceable as the original.

         Section 11. Remedies and Severability. The remedies provided in this
Agreement are cumulative and not exclusive of any remedies provided by law. If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of those that may be hereafter declared
invalid, illegal, void or unenforceable.

         Section 12. Conflicting Agreements. The Company shall not enter into
any agreement with respect to its securities that is inconsistent with the
rights granted to the purchasers of Registrable Securities in this Agreement or
otherwise prevents the Company from complying with all of its obligations
hereunder.

         Section 13. Headings. The headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

         Section 14. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
contracts made in New York by persons domiciled in New York City and without
regard to its principles of conflicts of laws. Any action may be brought as set
forth in the Purchase Agreement. Any party shall have the right to seek
injunctive relief from any court of competent jurisdiction in any case where
such relief is available. Any dispute under this Agreement shall be submitted to
arbitration under the American Arbitration Association (the "AAA") in New York
City, New York, and shall be finally and conclusively determined by the decision
of a board of arbitration consisting of three (3) members (hereinafter referred
to as the "Board of Arbitration") selected as according to the rules governing
the AAA. The Board of Arbitration shall meet on consecutive business days in New
York City, New York, and shall reach and render a decision in writing (concurred
in by a majority of the members of the Board of Arbitration) with respect to the
amount, if any, which the losing party is required to pay to the other party in
respect of a claim filed. In connection with rendering its decisions, the Board
of Arbitration shall adopt and follow the laws of the State of New York. To the
extent practical, decisions of the Board of Arbitration shall be rendered no
more than thirty (30) calendar days following commencement of proceedings with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be authorized and is directed to enter a default judgment against any party
refusing to participate in the arbitration proceeding within thirty days of any
deadline for such participation. Any decision made by the Board of Arbitration
(either prior to or after the expiration of such thirty (30) calendar day
period) shall be final, binding and conclusive on the parties to the dispute,
and entitled to be enforced to the fullest extent permitted by law and entered
in any court of

                                       10
<PAGE>

competent jurisdiction. The prevailing party shall be awarded its costs,
including attorneys' fees, from the non-prevailing party as part of the
arbitration award. Any party shall have the right to seek injunctive relief from
any court of competent jurisdiction in any case where such relief is available.
The prevailing party in such injunctive action shall be awarded its costs,
including attorney's fees, from the non-prevailing party.

                                       11
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed, on this 12th day of January, 2001

                                            SURGILIGHT, INC.

                                            By: /s/ J. Lin
                                                --------------------------------
                                                J. Lin, President & CEO

                                            ST. ANNES INVESTMENTS LTD

                                            By: /s/ H.U. Bachofen
                                                --------------------------------
                                                H.U. Bachofen, Director

                                       12
<PAGE>

                                                       EXHIBIT B TO EXHIBIT 10.1

                                ESCROW AGREEMENT

         THIS ESCROW AGREEMENT (this "Agreement") is made as of January 10,
2001, by and among SurgiLight, Inc., a corporation incorporated under the laws
of Delaware (the "Company"), St. Annes Investments Ltd. ("Purchaser"), and
Epstein Becker & Green, P.C., having an address at 250 Park Avenue, New York, NY
10177 (the "Escrow Agent"). Capitalized terms used but not defined herein shall
have the meanings set forth in the Common Stock Purchase Agreement referred to
in the first recital.

         WHEREAS, the Purchaser will from time to time as requested by the
Company, purchase shares of the Company's Common Stock from the Company as set
forth in that certain Common Stock Purchase Agreement (the "Purchase Agreement")
dated the date hereof between the Purchaser and the Company, which shares shall
be issued pursuant to the terms and conditions contained herein and in the
Purchase Agreement; and

         WHEREAS, the Company and the Purchaser have requested that the Escrow
Agent hold in escrow and then distribute the initial documents and certain funds
which are conditions precedent to the effectiveness of the Purchase Agreement,
and have further requested that upon each exercise of a Draw Down, the Escrow
Agent hold the relevant documents and the applicable purchase price pending
receipt by Purchaser of certificates representing the securities issuable upon
such Draw Down;

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

                                   ARTICLE I

                   TERMS OF THE ESCROW FOR THE INITIAL CLOSING

         1.1. The parties hereby agree to establish an escrow account with the
Escrow Agent whereby the Escrow Agent shall hold the funds and documents which
are referenced in Section 5.2 of the Purchase Agreement.

         1.2. At the Initial Closing, the Company shall deliver to the Escrow
Agent:

                           (i) the original executed Registration Rights
                  Agreement in the form of Exhibit A to the Purchase Agreement;

                           (ii) the original executed opinion of The Business
                  Law Group in the form of Exhibit C to the Purchase Agreement;

                           (iii) the sum of $20,000 for the fees and expenses of
                  the Purchaser's counsel;

<PAGE>

                           (iv) the original executed Company counterpart of
                  this Escrow Agreement;

                           (v) the original executed Company counterpart of the
                  Purchase Agreement; and

                           (vi) the original executed Warrant.

         1.3. Upon receipt of the foregoing, and receipt of executed
counterparts from Purchaser of the Purchase Agreement, the Registration Rights
Agreement and this Escrow Agreement, the Escrow Agent shall calculate and enter
the exercise price, issuance date and termination date on the face of the
Warrant and immediately transfer the sum of $20,000 to Epstein Becker & Green,
P.C. ("EB&G"), 250 Park Avenue, New York, New York 10177 for the Purchaser's
legal and escrow costs and shall then arrange to have the Purchase Agreement,
this Escrow Agreement, the Registration Rights Agreement, the Warrant and the
opinion of counsel delivered to the appropriate parties.

         1.4 Wire transfers to the Escrow Agent (not address for notice or
delivery of documents) shall be made as follows:

                           Epstein Becker & Green, P.C.
                           Master Escrow Account
                           Chase Manhattan Bank
                           1411 Broadway - Fifth Floor
                           New York, New York 10018
                           ABA No. 021000021
                           Account No. 035 1 346036
                           Attention: L. Borneo

                                   ARTICLE II

                     TERMS OF THE ESCROW FOR EACH DRAW DOWN

         2.1. Each time the Company shall send a Draw Down Notice to the
Purchaser as provided in the Purchase Agreement, it shall send a copy, by
facsimile, to the Escrow Agent.

         2.2. Each time the Purchaser shall purchase Shares pursuant to a Draw
Down, the Purchaser shall send the applicable Purchase Price of the Draw Down
Shares to the Escrow Agent. Upon receipt of such funds, the Escrow Agent shall
advise the Company in writing that it has received the funds for such Draw Down
Shares. The Company shall promptly, but no later than two (2) Trading Days after
receipt of such funding notice from the Escrow Agent:

                           (i) cause its transfer agent to issue the Draw Down
                  Shares to the Purchaser via DTC's DWAC system to the account
                  specified by the Purchaser from time to time;

                                       2
<PAGE>

                           (ii) deliver the original executed attorney's opinion
                  in the form of Exhibit C to the Purchase Agreement to the
                  Purchaser; and

                           (iii) deliver a Form 424(b) supplemental prospectus
                  to the Purchaser.

         2.3. Upon receipt of written confirmation from the transfer agent or
from the Purchaser that such Draw Down Shares have been so deposited and the
opinion and the supplemental prospectus have been so delivered, the Escrow Agent
shall, within one (1) Trading Day, wire 95% of the Purchase Price of the Draw
Down Shares per the written instructions of the Company, net of $750 as escrow
expenses to the Escrow Agent, and wire the remaining 5% of the Purchase Price
per the written instructions of GKN Securities Corp.

         2.4. In the event that the Draw Down Shares are not in the Purchaser's
DTC account and the opinion and supplemental prospectus are not delivered to the
Escrow Agent within two (2) Trading Days of the date of the Escrow Agent's
notice, then Purchaser shall have the right to demand, by notice, the return of
the Purchase Price, and the Draw Down Notice shall be deemed cancelled.

                                   ARTICLE III

                                  MISCELLANEOUS

         3.1. No waiver or any breach of any covenant or provision herein
contained shall be deemed a waiver of any preceding or succeeding breach
thereof, or of any other covenant or provision herein contained. No extension of
time for performance of any obligation or act shall be deemed an extension of
the time for performance of any other obligation or act.

         3.2. All notices or other communications required or permitted
hereunder shall be in writing, and shall be sent by fax, overnight courier,
registered or certified mail, postage prepaid, return receipt requested, and
shall be deemed received upon receipt thereof, as set forth in the Purchase
Agreement.

         3.3. This Escrow Agreement shall be binding upon and shall inure to the
benefit of the permitted successors and permitted assigns of the parties hereto.

         3.4. This Escrow Agreement is the final expression of, and contains the
entire agreement between, the parties with respect to the subject matter hereof
and supersedes all prior understandings with respect thereto. This Escrow
Agreement may not be modified, changed, supplemented or terminated, nor may any
obligations hereunder be waived, except by written instrument signed by the
parties to be charged or by their respective agents duly authorized in writing
or as otherwise expressly permitted herein.

         3.5. Whenever required by the context of this Escrow Agreement, the
singular shall include the plural and masculine shall include the feminine. This
Escrow Agreement shall not be construed as if it had been prepared by one of the
parties, but rather as if both parties had

                                       3
<PAGE>

prepared the same. Unless otherwise indicated, all references to Articles are to
this Escrow Agreement.

         3.6. The parties hereto expressly agree that this Escrow Agreement
shall be governed by, interpreted under and construed and enforced in accordance
with the laws of the State of New York. Except as expressly set forth herein,
any action to enforce, arising out of, or relating in any way to, any provisions
of this Escrow Agreement shall be brought in the Federal or state courts of New
York, New York as is more fully set forth in the Purchase Agreement.

         3.7. The Escrow Agent's duties hereunder may be altered, amended,
modified or revoked only by a writing signed by the Company, Purchaser and the
Escrow Agent.

         3.8. The Escrow Agent shall be obligated only for the performance of
such duties as are specifically set forth herein and may rely and shall be
protected in relying or refraining from acting on any instrument reasonably
believed by the Escrow Agent to be genuine and to have been signed or presented
by the proper party or parties. The Escrow Agent shall not be personally liable
for any act the Escrow Agent may do or omit to do hereunder as the Escrow Agent
while acting in good faith, excepting only its own gross negligence or willful
misconduct, and any act done or omitted by the Escrow Agent pursuant to the
advice of the Escrow Agent's attorneys-at-law (other than Escrow Agent itself)
shall be conclusive evidence of such good faith.

         3.9. The Escrow Agent is hereby expressly authorized to disregard any
and all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law and is hereby
expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case the Escrow Agent obeys or complies with any such order, judgment
or decree, the Escrow Agent shall not be liable to any of the parties hereto or
to any other person, firm or corporation by reason of such decree being
subsequently reversed, modified, annulled, set aside, vacated or found to have
been entered without jurisdiction.

         3.10. The Escrow Agent shall not be liable in any respect on account of
the identity, authorization or rights of the parties executing or delivering or
purporting to execute or deliver the Purchase Agreement or any documents or
papers deposited or called for thereunder or hereunder.

         3.11. The Escrow Agent shall be entitled to employ such legal counsel
and other experts as the Escrow Agent may deem necessary properly to advise the
Escrow Agent in connection with the Escrow Agent's duties hereunder, may rely
upon the advice of such counsel, and may pay such counsel reasonable
compensation therefor. The Escrow Agent has acted as legal counsel for the
Purchaser, and may continue to act as legal counsel for the Purchaser, from time
to time, notwithstanding its duties as the Escrow Agent hereunder. The Company
consents to the Escrow Agent in such capacity as legal counsel for the Purchaser
and waives any claim that such representation represents a conflict of interest
on the part of the Escrow Agent. The Company understands that the Purchaser and
the Escrow Agent are relying explicitly on the foregoing provision in entering
into this Escrow Agreement.

                                       4
<PAGE>

         3.12. The Escrow Agent's responsibilities as escrow agent hereunder
shall terminate if the Escrow Agent shall resign by written notice to the
Company and the Purchaser. In the event of any such resignation, the Purchaser
and the Company shall appoint a successor Escrow Agent.

         3.13. If the Escrow Agent reasonably requires other or further
instruments in connection with this Escrow Agreement or obligations in respect
hereto, the necessary parties hereto shall join in furnishing such instruments.

         3.14. It is understood and agreed that should any dispute arise with
respect to the delivery and/or ownership or right of possession of the documents
or the escrow funds held by the Escrow Agent hereunder, the Escrow Agent is
authorized and directed in the Escrow Agent's sole discretion (1) to retain in
the Escrow Agent's possession without liability to anyone all or any part of
said documents or the escrow funds until such disputes shall have been settled
either by mutual written agreement of the parties concerned by a final order,
decree or judgment of a court of competent jurisdiction after the time for
appeal has expired and no appeal has been perfected, but the Escrow Agent shall
be under no duty whatsoever to institute or defend any such proceedings or (2)
to deliver the escrow funds and any other property and documents held by the
Escrow Agent hereunder to a state or Federal court having competent subject
matter jurisdiction and located in the State and City of New York in accordance
with the applicable procedure therefor.

         3.15. The Company and the Purchaser agree jointly and severally to
indemnify and hold harmless the Escrow Agent and its partners, employees, agents
and representatives from any and all claims, liabilities, costs or expenses in
any way arising from or relating to the duties or performance of the Escrow
Agent hereunder or the transactions contemplated hereby or by the Purchase
Agreement other than any such claim, liability, cost or expense to the extent
the same shall have been determined by final, unappealable judgment of a court
of competent jurisdiction to have resulted from the gross negligence or willful
misconduct of the Escrow Agent.

                                       5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Escrow
Agreement as of this 12th day of January, 2001.

                                SURGILIGHT, INC.

                                By: /s/ J. Lin
                                    --------------------------------------------
                                    J. Lin, President & CEO

                                ST. ANNES INVESTMENTS LTD.

                                By: /s/ H.U. Bachofen
                                    --------------------------------------------
                                    H.U. Bachofen, Director

                                ESCROW AGENT:

                                EPSTEIN BECKER & GREEN, P.C.

                                By: /s/ Robert F. Charron
                                    --------------------------------------------
                                    Robert F. Charron, Authorized Signatory

                                       6
<PAGE>

                                                       EXHIBIT C TO EXHIBIT 10.1

         Executed opinion of The Business Law Group attached hereto and, as to
the opinion to be delivered pursuant to Section 5.3(e) of the Purchase Agreement
at Settlement, the following additional items:

                  1.       The Registration Statement has been declared
effective by the SEC and no stop order is in effect with respect to the
Registration Statement. Assuming compliance by the Purchaser with the "Plan of
Distribution" caption of the Registration Statement and timely compliance by the
Purchaser with all prospectus delivery requirements, the Shares shall be freely
transferable by the Purchaser.

                  2.       We have no knowledge that the Registration Statement
and the Prospectus at the time the Registration Statement became effective and
as of the date of this opinion contained or contain an untrue statement of a
material fact or omitted or omits to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; however, we express no
opinion with respect to the financial statements and the notes thereto and the
schedules and other financial and statistical data derived therefrom included in
the Registration Statement or the Prospectus.

<PAGE>

                                January 12, 2001

St. Annes Investments, Ltd.
C/o Ultra Finance Ltd.
Grossmuenster 6, P.O. Box 4401
Zurich Ch-8022 Switzerland
Attn: H. U. Bachofen
Fax: 011-411-212-5515

         Re:      Common Stock Purchase Agreement Between St. Annes Investments,
                  Ltd. and SurgiLight, Inc.

Ladies and Gentlemen:

         This opinion is furnished to you pursuant to the Common Stock Purchase
Agreement by and between St. Annes Investments, Ltd. (the "Purchaser") and
SurgiLight, Inc. (the "Company"), dated as of January 12, 2001 (the "Purchase
Agreement"), which provides for the issuance and sale by the Company of up to
$30,000,000 of Common Stock (the "Shares") of the Company and Warrants. All
terms used herein have the meanings defined for them in the Purchase Agreement
unless otherwise defined herein.

         We have acted as counsel for the Company in connection with the
negotiation of the Purchase Agreement, the Warrants issued by the Company at the
Closing, the Registration Rights Agreement between the Purchaser and the
Company, dated as of January 12, 2001 (the "Registration Rights Agreement"), and
the Escrow Agreement between the Purchaser, the Company and Epstein Becker &
Green, P.C., dated as of January 12, 2001 (the "Escrow Agreement", and together
with the Purchase Agreement, the Warrant and the Registration Rights Agreement,
the "Agreements"). As counsel, we have made such legal and factual examinations
and inquiries as we have deemed advisable or necessary for the purpose of
rendering this opinion. In addition, we have examined, among other things,
originals or copies of such corporate records of the Company, certificates of
public officials and such other documents and questions of law that we consider
necessary or advisable for the purpose of rendering this opinion. In such
examination we have assumed the genuineness of all signatures on original
documents, the authenticity and completeness of all documents submitted to us as
originals, the conformity to original documents of all copies submitted to us as
copies thereof, the legal capacity of natural persons, and the due execution and
delivery of all documents (except as to

<PAGE>

due execution and delivery by the Company) where due execution and delivery are
a prerequisite to the effectiveness thereof.

         As used in this opinion, the expression "to our knowledge" refers to
the current actual knowledge of the attorneys of this firm who have worked on
matters for the Company solely in connection with the Agreements and the
transactions contemplated thereby without independent investigation or inquiry.

         For purposes of this opinion, we have assumed that the Purchaser has
all requisite power and authority, and has taken any and all necessary corporate
action, to execute and deliver the Agreements, and we are assuming that the
representations and warranties made by the Purchaser in the Agreements and
pursuant thereto are true and correct.

         Based upon and subject to the foregoing, we are of the opinion that:

         1. The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite
power and authority (corporate and other) to carry on its business and to own,
lease and operate its properties and assets as described in the Company's SEC
Documents. The Company and each subsidiary is duly qualified as a foreign
corporation to do business and is in good standing in every jurisdiction in
which the Company owns or leases property, other than those in which the failure
so to qualify would not have a Material Adverse Effect.

         2. The Company has the requisite corporate power and authority to enter
into and perform its obligations under the Agreements and to issue the Shares.
The execution and delivery of the Agreements by the Company and the consummation
by it of the transactions contemplated thereby have been duly authorized by all
necessary corporate action and no further consent or authorization of the
Company or its Board of Directors or stockholders is required. Each of the
Agreements has been duly executed and delivered by the Company and each of the
Agreements constitutes valid and binding obligations of the Company enforceable
against the Company in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws relating to, or affecting generally the enforcement of creditors' rights
and remedies or by other equitable principles of general application.

         3. The execution, delivery and performance of the Agreements by the
Company and the consummation by the Company of the transactions contemplated
thereby, including, without limitation, the issuance of the Shares, the Warrant
and the shares issuable upon exercise of the Warrant (the "Warrant Shares"), do
not and will not (i) result in a violation of the Company's Charter (the
"Charter") or By-Laws; (ii) to our knowledge, except as set forth on Schedule 3
hereto, conflict with, or constitute a material default (or an event that with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
material agreement, indenture, instrument or any "lock-up" or similar provision
of any underwriting or similar agreement to which the Company is a party; or
(iii) result in a violation of any federal or state law, rule or regulation
applicable to the Company or by which any property or asset of the Company is
bound or affected, except for such

                                       2
<PAGE>

violations as would not, individually or in the aggregate, have a Material
Adverse Effect. To our knowledge, the Company is not in violation of any terms
of its Charter or Bylaws.

         4. When issued and duly paid for, the Shares and Warrant Shares will be
duly and validly issued, fully paid and nonassessable, and free of any liens,
encumbrances and preemptive or similar rights contained in the Company's Charter
or Bylaws or, to our knowledge, in any agreement to which the Company is party,
except as set forth in Schedule 4 hereto.

         5. To our knowledge, except as disclosed in the SEC Documents and in
Schedule 5 hereto, there are no claims, actions, suits, proceedings or
investigations that are pending against the Company or its properties, or
against any officer or director of the Company in his or her capacity as such,
nor has the Company received any written threat of any such claims, actions,
suits, proceedings, or investigations.

         6. To our knowledge, there are no outstanding options, warrants, calls
or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exchangeable for, or giving any right to
subscribe for or acquire any shares of Common Stock or contracts, commitments,
understanding, or arrangements by which the Company is or may become bound to
issue additional shares of Common Stock, or securities or rights convertible or
exchangeable into shares of Common Stock, except as described in the SEC
Documents or the Agreements or as set forth in Schedule 6 hereto. To our
knowledge, the Company is not a party to or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency or
instrumentality.

         7. To our knowledge, the issuance of the Shares and the Warrant Shares
will not violate the applicable listing agreement between the Company and any
securities exchange or market on which the Company's securities are listed.

         8. The authorized capital stock of the Company consists of 30,000,000
shares of Common Stock, $0.001 par value per share, of which approximately
23,676,600 shares are issued and outstanding (including 2,186,000 held in escrow
pursuant to another transaction) and 10,000,000 of preferred stock, $0.001 par
value per share, of which none are issued and outstanding.

         This opinion is furnished to the Purchaser solely for its benefit in
connection with the transactions described above and may not be relied upon by
any other person or for any other purpose without our prior written consent.

         We are members of the Bar of the State of Florida. We call your
attention to the fact that the Purchase Agreement is to be governed by the laws
of the State of New York and that we are not members of the Bar of the State of
New York. We express no opinion as to the enforceability of the Purchase
Agreement under any laws other than the laws of the State of Florida. This
opinion is based solely upon the foregoing Florida laws as currently in effect.

                                       3
<PAGE>

         The opinions expressed herein are given to you solely for your use in
connection with the transaction contemplated by the Investment Agreement and may
not be relied upon by, or delivered to, any other person or entity or for any
other purpose without our prior written consent.

                                             THE BUSINESS LAW GROUP

                                             By: /s/ J. Bennett Grocock
                                                 -------------------------------
                                                 J. Bennett Grocock, Esq.

                                       4
<PAGE>

                                   Schedule 3

There are certain default, acceleration, and anti-dilution provisions in the
Debenture Purchase Agreement, Debenture, and Warrant between the Company and
GEM.

                                       5
<PAGE>

                                   Schedule 4

There may be certain rights held by GEM pursuant to the Debenture and related
agreements.

                                       6
<PAGE>

                                   Schedule 5

         In November 2000 the Company was served with a private order of
investigation from the United States Securities Exchange Commission. Factual
inquiry is presently ensuing. The Company is not aware of any securities law
violations and does not anticipate that this investigation will result in any
formal charges.

                                       7
<PAGE>

                                   Schedule 6

There is an outstanding warrant held by GEM.

                                       8
<PAGE>

                                                       EXHIBIT D TO EXHIBIT 10.1

                     DRAW DOWN NOTICE/COMPLIANCE CERTIFICATE

                                SurgiLight, Inc.

         The undersigned hereby certifies, with respect to shares of Common
Stock of SurgiLight, Inc. (the "Company") issuable in connection with this Draw
Down Notice and Compliance Certificate dated _____________ (the "Notice"),
delivered pursuant to the Common Stock Purchase Agreement dated as of January
102001 (the "Agreement"), as follows:

         1. The undersigned is the duly appointed Chief Executive Officer of the
Company.

         2. Except as set forth on the schedules attached hereto, the
representations and warranties of the Company set forth in the Agreement are
true and correct in all material respects as though made on and as of the date
hereof and all SEC Documents are as represented in Section 3.1(f) of the
Agreement.

         3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company under the Agreement on or prior to the
date of this Draw Down Notice and has complied in all material respects with all
of the Company's obligations and conditions contained in the Agreement.

         4. The Investment Amount is $___________.

         5. The Threshold Price, if any, is $__________.

         6. The Draw Down Pricing Period shall commence on ____________.

         The undersigned has executed this Certificate this ____ day of
________, _____.

                                            SURGILIGHT, INC.

                                            By:
                                               ---------------------------------
                                            Name:
                                            Title:

<PAGE>

                                                       EXHIBIT E TO EXHIBIT 10.1

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

                             STOCK PURCHASE WARRANT

                  To Purchase 100,000 shares of Common Stock of

                                SURGILIGHT, INC.

         THIS CERTIFIES that, for value received, St. Annes Investments Ltd.
(the "Holder"), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after
January 12, 2001 (the "Initial Exercise Date") and on or prior to the close of
business on January 12, 2004 (the "Termination Date") but not thereafter, to
subscribe for and purchase from SurgiLight, Inc., a corporation incorporated in
the State of Delaware (the "Company"), up to 100,000 shares (the "Warrant
Shares") of Common Stock, $0.001 par value per share, of the Company (the
"Common Stock"). The purchase price of one share of Common Stock (the "Exercise
Price") under this Warrant shall be $3.34. The Exercise Price and the number of
Warrant Shares for which the Warrant is exercisable shall be subject to
adjustment as provided herein. In the event of any conflict between the terms of
this Warrant and the Common Stock Purchase Agreement dated as of January 10,
2001 pursuant to which this Warrant has been issued (the "Purchase Agreement"),
the Purchase Agreement shall control. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth for such terms in the Purchase
Agreement.

                                       1
<PAGE>

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

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

         3. Exercise of Warrant.

                  (a) Except as provided in Section 4 herein, exercise of the
         purchase rights represented by this Warrant may be made at any time or
         times on or after the Initial Exercise Date, and on or before the close
         of business on the Termination Date by the surrender of this Warrant
         and the Notice of Exercise Form annexed hereto duly executed, at the
         office of the Company (or such other office or agency of the Company as
         it may designate by notice in writing to the registered Holder at the
         address of such Holder appearing on the books of the Company) and upon
         payment of the Exercise Price of the shares thereby purchased by wire
         transfer or cashier's check drawn on a United States bank, the Holder
         shall be entitled to receive a certificate for the number of Warrant
         Shares so purchased. Certificates for shares purchased hereunder shall
         be delivered to the Holder within three (3) Trading Days after the date
         on which this Warrant shall have been exercised as aforesaid. This
         Warrant shall be deemed to have been exercised and such certificate or
         certificates shall be deemed to have been issued, and Holder or any
         other person so designated to be named therein shall be deemed to have
         become a holder of record of such shares for all purposes, as of the
         date the Warrant has been exercised by payment to the Company of the
         Exercise Price and all taxes required to be paid by the Holder, if any,
         pursuant to Section 5 prior to the issuance of such shares, have been
         paid.

                  (b) If this Warrant shall have been exercised in part, the
         Company shall, at the time of delivery of the certificate or
         certificates representing Warrant Shares, deliver to Holder a new
         Warrant evidencing the rights of Holder to purchase the unpurchased
         Warrant Shares called for by this Warrant, which new Warrant shall in
         all other respects be identical with this Warrant.

                  (c) This Warrant shall also be exercisable by means of a
         "cashless exercise" in which the Holder shall be entitled to receive a
         certificate for the number of Warrant Shares equal to the quotient
         obtained by dividing [(A-B) (X)] by (A), where:

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

                                       2
<PAGE>

                  Nasdaq Stock Market, or if the Common Stock is not traded on
                  the Nasdaq Stock Market, then the Principal Market in terms of
                  volume, and converted into US Dollars;

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

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

                  (d) Notwithstanding anything herein to the contrary, in no
         event shall the Holder be permitted to exercise this Warrant for
         Warrant Shares to the extent that (i) the number of Warrant Shares
         owned by such Holder (other than Warrant Shares issuable upon exercise
         of this Warrant) plus (ii) the number of Warrant Shares issuable upon
         exercise of this Warrant, would be equal to or exceed 9.9% of the
         number of Warrant Shares then issued and outstanding, including shares
         issuable upon exercise of this Warrant held by such Holder after
         application of this Section 3(d). As used herein, beneficial ownership
         shall be determined in accordance with Section 13(d) of the Exchange
         Act. To the extent that the limitation contained in this Section 3(d)
         applies, the determination of whether this Warrant is exercisable (in
         relation to other securities owned by the Holder) and of which a
         portion of this Warrant is exercisable shall be in the sole discretion
         of such Holder, and the submission of a Notice of Exercise shall be
         deemed to be such Holder's determination of whether this Warrant is
         exercisable (in relation to other securities owned by such Holder) and
         of which portion of this Warrant is exercisable, in each case subject
         to such aggregate percentage limitation, and the Company shall have no
         obligation to verify or confirm the accuracy of such determination.
         Nothing contained herein shall be deemed to restrict the right of a
         Holder to exercise this Warrant into Warrant Shares at such time as
         such exercise will not violate the provisions of this Section 3(d). The
         provisions of this Section 3(d) may be waived by the Holder upon, at
         the election of the Holder, with not less than 61 days' prior notice to
         the Company, and the provisions of this Section 3(d) shall continue to
         apply until such 61st day (or such later date as may be specified in
         such notice of waiver). No exercise of this Warrant in violation of
         this Section 3(d) but otherwise in accordance with this Warrant shall
         affect the status of the Warrant Shares as validly issued, fully-paid
         and nonassessable.

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

         5. Charges, Taxes and Expenses. Issuance of certificates for Warrant
Shares shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all
of which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this

                                       3
<PAGE>

Warrant when surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder; and the Company may require,
as a condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto.

         6. Closing of Books. The Company will not close its stockholder books
or records in any manner which prevents the timely exercise of this Warrant.

         7. Transfer, Division and Combination.

                  (a) Subject to compliance with any applicable securities laws,
         transfer of this Warrant and all rights hereunder, in whole or in part,
         shall be registered on the books of the Company to be maintained for
         such purpose, upon surrender of this Warrant at the principal office of
         the Company, together with a written assignment of this Warrant
         substantially in the form attached hereto duly executed by the Holder
         or its agent or attorney and funds sufficient to pay any transfer taxes
         payable upon the making of such transfer. In the event that the Holder
         wishes to transfer a portion of this Warrant, the Holder shall transfer
         at least 50,000 shares underlying this Warrant to any such transferee.
         Upon such surrender and, if required, such payment, the Company shall
         execute and deliver a new Warrant or Warrants in the name of the
         assignee or assignees and in the denomination or denominations
         specified in such instrument of assignment, and shall issue to the
         assignor a new Warrant evidencing the portion of this Warrant not so
         assigned, and this Warrant shall promptly be cancelled. A Warrant, if
         properly assigned, may be exercised by a new holder for the purchase of
         Warrant Shares without having a new Warrant issued.

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

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

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

                                       4
<PAGE>

         8. No Rights as Shareholder until Exercise. This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price, the Warrant Shares so purchased shall
be and be deemed to be issued to such Holder as the record owner of such shares
as of the close of business on the later of the date of such surrender or
payment.

         9. Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

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

         11. Adjustments of Exercise Price and Number of Warrant Shares. (a)
Stock Splits, etc. The number and kind of securities purchasable upon the
exercise of this Warrant and the Exercise Price shall be subject to adjustment
from time to time upon the happening of any of the following. In case the
Company shall (i) pay a dividend in Warrant Shares or make a distribution in
Warrant Shares to holders of its outstanding Common Stock, (ii) subdivide its
outstanding Warrant Shares into a greater number of Warrant Shares, (iii)
combine its outstanding Warrant Shares into a smaller number of Warrant Shares
or (iv) issue any shares of its capital stock in a reclassification of the
Common Stock, then the number of Warrant Shares purchasable upon exercise of
this Warrant immediately prior thereto shall be adjusted so that the Holder
shall be entitled to receive the kind and number of Warrant Shares or other
securities of the Company which it would have owned or have been entitled to
receive had such Warrant been exercised in advance thereof. Upon each such
adjustment of the kind and number of Warrant Shares or other securities of the
Company which are purchasable hereunder, the Holder shall thereafter be entitled
to purchase the number of Warrant Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by
the number of Warrant Shares purchasable pursuant hereto immediately prior to
such adjustment and dividing by the number of Warrant Shares or other securities
of the Company resulting from such adjustment. An adjustment made pursuant to
this paragraph shall become effective immediately after the effective date of
such event retroactive to the record date, if any, for such event.

         12. Reorganization, Reclassification, Merger, Consolidation or
Disposition of Assets. In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where there
is a change in or distribution with respect to the Common Stock of the Company),
or sell, transfer or otherwise dispose of all or substantially all its property,
assets or business to

                                       5
<PAGE>

another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of
common stock of the successor or acquiring corporation, or any cash, shares of
stock or other securities or property of any nature whatsoever (including
warrants or other subscription or purchase rights) in addition to or in lieu of
common stock of the successor or acquiring corporation ("Other Property"), are
to be received by or distributed to the holders of Common Stock of the Company,
then the Holder shall have the right thereafter to receive, upon exercise of
this Warrant, the number of Warrant Shares of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of Warrant Shares for which this Warrant is exercisable immediately
prior to such event. In case of any such reorganization, reclassification,
merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition of
this Warrant to be performed and observed by the Company and all the obligations
and liabilities hereunder, subject to such modifications as may be deemed
appropriate (as determined in good faith by resolution of the Board of Directors
of the Company) in order to provide for adjustments of Warrant Shares for which
this Warrant is exercisable which shall be as nearly equivalent as practicable
to the adjustments provided for in this Section 12. For purposes of this Section
12, "common stock of the successor or acquiring corporation" shall include stock
of such corporation of any class which is not preferred as to dividends or
assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares of stock or other securities which are convertible into or exchangeable
for any such stock, either immediately or upon the arrival of a specified date
or the happening of a specified event and any warrants or other rights to
subscribe for or purchase any such stock. The foregoing provisions of this
Section 13 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

         13. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.

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

         15. Notice of Corporate Action. If at any time:

                  (a) the Company shall take a record of the holders of its
         Common Stock for the purpose of entitling them to receive a dividend or
         other

                                       6
<PAGE>

         distribution, or any right to subscribe for or purchase any evidences
         of its indebtedness, any shares of stock of any class or any other
         securities or property, or to receive any other right, or

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

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

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their Warrant Shares for securities or other property
deliverable upon such disposition, dissolution, liquidation or winding up. Each
such written notice shall be sufficiently given if addressed to Holder at the
last address of Holder appearing on the books of the Company and delivered in
accordance with Section 17(d).

         16. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

         The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such actions

                                       7
<PAGE>

as may be necessary or appropriate to protect the rights of Holder against
impairment. Without limiting the generality of the foregoing, the Company will
(a) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (b)
take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable Warrant
Shares upon the exercise of this Warrant, and (c) use commercially reasonable
efforts to obtain all such authorizations, exemptions or consents from any
public regulatory body having jurisdiction thereof as may be necessary to enable
the Company to perform its obligations under this Warrant.

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

         17. Miscellaneous.

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

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

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

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

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

                                       8
<PAGE>

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

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

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

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

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

                                       9
<PAGE>

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

Dated: January 12, 2001

                                        SURGILIGHT, INC.

                                        By: /s/ J. Lin
                                            ------------------------------------
                                            J. Lin, President & CEO

                                       10
<PAGE>

         To: SurgiLight, Inc.

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

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

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

The Warrant Shares shall be delivered to the following:

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

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

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

                                              [PURCHASER]

                                              By:
                                                 -------------------------------
                                              Name:
                                              Title:

                                              Dated:
                                                    ----------------------------

<PAGE>

                                 ASSIGNMENT FORM

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

         FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

                                                                whose address is
---------------------------------------------------------------

-------------------------------------------------------------------------------.

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

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

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

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

Signature Guaranteed:
                     --------------------------------------------

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in an fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.EXHIBIT 10.2

            THE REGISTERED HOLDER OF THIS WARRANT, BY ITS ACCEPTANCE
            HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN
                     THIS WARRANT EXCEPT AS HEREIN PROVIDED.

               VOID AFTER 5:00 P.M. EASTERN TIME, JANUARY 12, 2006

                                     WARRANT

                               For the Purchase of

                          2,000 Shares of Common Stock

                                       of

                                 SURGILIGHT, INC

1.       Warrant.

         THIS CERTIFIES THAT, for $1.00 and other good and valuable
consideration, duly paid by or on behalf of __________________ ("Holder"), as
registered owner of this Warrant, to SurgiLight, Inc., a Delaware corporation
("Company"), Holder is entitled, at any time or from time to time at or after
January 12, 2001 ("Commencement Date"), and at or before 5:00 p.m., Eastern Time
January 12, 2006 ("Expiration Date"), but not thereafter, to subscribe for,
purchase and receive, in whole or in part, up to two thousand (2,000) shares of
Common Stock of the Company, $.001 par value ("Common Stock"). If the Expiration
Date is a day on which banking institutions are authorized by law to close, then
this Warrant may be exercised on the next succeeding day which is not such a day
in accordance with the terms herein. During the period ending on the Expiration
Date, the Company agrees not to take any action that would terminate the
Warrant. This Warrant is initially exercisable at $3.34 per share of Common
Stock purchased; provided, however, that upon the occurrence of any of the
events specified in Section 6 hereof, the rights granted by this Warrant,
including the exercise price and the number of shares of Common Stock to be
received upon such exercise, shall be adjusted as therein specified. The term
"Exercise Price" shall mean the initial exercise price or the adjusted exercise
price, depending on the context, of a share of Common Stock. The term
"Securities" shall mean the shares of Common Stock issuable upon exercise of
this Warrant.

2.       Exercise.

         2.1 Exercise Form. In order to exercise this Warrant, the exercise form
attached hereto must be duly executed and completed and delivered to the
Company, together with this Warrant and payment of the Exercise Price for the
Securities being purchased. If the subscription rights represented hereby shall
not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date,
this Warrant shall become and be void without further force or effect, and all
rights represented hereby shall cease and expire.

<PAGE>

         2.2 Legend. Each certificate for Securities purchased under this
Warrant shall bear a legend as follows, unless such Securities have been
registered under the Securities Act of 1933, as amended ("Act"):

         "The securities represented by this certificate have not been
         registered under the Securities Act of 1933, as amended ("Act") or
         applicable state law. The securities may not be offered for sale, sold
         or otherwise transferred except pursuant to an effective registration
         statement under the Act, or pursuant to an exemption from registration
         under the Act and applicable state law."

         2.3      Conversion Right.

                  2.3.1 Determination of Amount. In lieu of the payment of the
Exercise Price in cash, the Holder shall have the right (but not the obligation)
to convert this Warrant, in whole or in part, into Common Stock ("Conversion
Right"), as follows: upon exercise of the Conversion Right, the Company shall
deliver to the Holder (without payment by the Holder of any of the Exercise
Price) that number of shares of Common Stock equal to the quotient obtained by
dividing (x) the "Value" (as defined below) of the portion of the Warrant being
converted at the time the Conversion Right is exercised by (y) the Market Price.
The "Value" of the portion of the Warrant being converted shall equal the
remainder derived from subtracting (a) the Exercise Price multiplied by the
number of shares of Common Stock being converted from (b) the Market Price of
the Common Stock multiplied by the number of shares of Common Stock being
converted. As used herein, the term "Market Price" at any date shall be deemed
to be the last reported sale price of the Common Stock on such date, or, in case
no such reported sale takes place on such day, the average of the last reported
sale prices for the immediately preceding three trading days, in either case as
officially reported by the principal securities exchange on which the Common
Stock is listed or admitted to trading, or, if the Common Stock is not listed or
admitted to trading on any national securities exchange or if any such exchange
on which the Common Stock is listed is not its principal trading market, the
last reported sale price as furnished by the National Association of Securities
Dealers, Inc. ("NASD") through the Nasdaq National Market or SmallCap Market,
or, if applicable, the OTC Bulletin Board, or if the Common Stock is not listed
or admitted to trading on any of the foregoing markets, or similar organization,
as determined in good faith by resolution of the Board of Directors of the
Company, based on the best information available to it.

                  2.3.2 Exercise of Conversion Right. The Conversion Right may
be exercised by the Holder on any business day on or after the Commencement Date
and not later than the Expiration Date by delivering the Warrant with a duly
executed exercise form attached hereto with the conversion section completed to
the Company, exercising the Conversion Right and specifying the total number of
shares of Common Stock the Holder will purchase pursuant to such conversion.

3.       Transfer.

         3.1      General Restrictions. The registered Holder of this Warrant,
by its acceptance hereof, agrees that it will not sell, transfer or assign or
hypothecate this Warrant to anyone except upon compliance with, or pursuant to
exemptions from, applicable securities laws. In order to make any permitted
assignment, the Holder must deliver to the Company the assignment form attached
hereto duly executed and completed, together with this Warrant and payment of
all transfer taxes, if any, payable in connection therewith. The Company shall
immediately transfer this Warrant on the books of the Company and shall execute
and deliver a new Warrant or Warrants of like tenor to the appropriate
assignee(s) expressly evidencing the right to purchase the aggregate number of
shares of Common Stock purchasable hereunder or such portion of such number as
shall be contemplated by any such assignment.

         3.2      Restrictions Imposed by the Securities Act. This Warrant and
the Securities underlying this Warrant shall not be transferred unless and until
(i) the Company has received the opinion of counsel for the

                                       2
<PAGE>

Holder that such securities may be sold pursuant to an exemption from
registration under the Act, and applicable state law, the availability of which
is established to the reasonable satisfaction of the Company, or (ii) a
registration statement relating to such Securities has been filed by the Company
and declared effective by the Securities and Exchange Commission and compliance
with applicable state law.

4.       New Warrants to be Issued.

         4.1      Partial Exercise or Transfer. Subject to the restrictions in
Section 3 hereof, this Warrant may be exercised or assigned in whole or in part.
In the event of the exercise or assignment hereof in part only, upon surrender
of this Warrant for cancellation, together with the duly executed exercise or
assignment form and funds (or conversion equivalent) sufficient to pay any
Exercise Price and/or transfer tax, the Company shall cause to be delivered to
the Holder without charge a new Warrant of like tenor to this Warrant in the
name of the Holder evidencing the right of the Holder to purchase the aggregate
number of shares of Common Stock and Warrants purchasable hereunder as to which
this Warrant has not been exercised or assigned.

         4.2      Lost Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and of reasonably satisfactory indemnification, the Company shall execute and
deliver a new Warrant of like tenor and date. Any such new Warrant executed and
delivered as a result of such loss, theft, mutilation or destruction shall
constitute a substitute contractual obligation on the part of the Company.

5.       Registration Rights.

         5.1      Demand Registration.

                  5.1.1 Grant of Right. The Company, upon written demand
("Initial Demand Notice") of the Holder(s) of more than 50% ("Majority Holders")
of the Warrants and/or the underlying Common Stock (collectively "Registrable
Securities"), agrees to register on one occasion, all or any portion of the
Warrants and/or the underlying Common Stock requested by the Majority Holders in
the Initial Demand Notice. Upon the request by the Majority Holders as set forth
in the preceding sentence, the Company will file a registration statement
covering the Registrable Securities within thirty days after receipt of the
Initial Demand Notice and use its best efforts to have such registration
statement declared effective as soon as possible thereafter. Should this
registration or the effectiveness thereof be delayed by the Company, the
exercisability of the Warrants shall be extended for a period of time equal to
the delay in registering the Registrable Securities. Moreover, if the Company
willfully fails to comply with the provisions of this Section 5.1.1, the Company
shall, in addition to any other equitable or other relief available to the
Holder(s), be liable for any and all incidental, special and consequential
damages sustained by the Holder(s). The demand for registration may be made at
any time during a period of seven years beginning one year from the Commencement
Date. The Company covenants and agrees to give written notice of its receipt of
any Initial Demand Notice by any Holder(s) to all other registered Holders of
the Warrants and/or the Registerable Securities within ten days from the date of
the receipt of any such Initial Demand Notice.

                  5.1.2 Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities if such registration of the
Registrable Securities of any Holder relates to an Initial Demand Notice from
the Majority Holders, including any filing fees payable to the National
Association of Securities Dealers, Inc., but the Holders shall pay any and all
underwriting commissions and the expenses of any legal counsel selected by the
Holders to represent them in connection with the sale of the Registrable
Securities. The Company agrees to use its reasonable best efforts to qualify or
register the Registrable Securities in such States as are reasonably requested
by the Majority Holder(s); provided, however, that in no event shall the Company
be required to register the Registrable Securities in a State in which such
registration would cause (i) the Company to

                                       3
<PAGE>

be obligated to qualify to do business in such State, or would subject the
Company to taxation as a foreign corporation doing business in such jurisdiction
or (ii) the principal stockholders of the Company to be obligated to escrow
their shares of capital stock of the Company. The Company shall cause any
registration statement filed pursuant to the demand rights granted under Section
5.1.1 to remain effective for a period of nine consecutive months from the
effective date of such registration statement unless the registration statement
is on Form S-3 in which case the Company shall cause the registration statement
to remain effective until all the Registrable Securities are sold.

         5.2      "Piggy-Back" Registration.

                  5.2.1 Grant of Right. The Holders of this Warrant for so long
as they hold any of the Registrable Securities shall have the right from the
Commencement Date to include all or any part of the Registrable Securities as
part of any registration of securities filed by the Company (other than in
connection with a transaction contemplated by Rule 145(a) promulgated under the
Act or pursuant to Form S-8 or any equivalent form), including those
registrations filed prior to the date hereof but which have not yet been
declared effective; provided, however, that if, in the written opinion of the
Company's managing underwriter or underwriters, if any, for such offering (the
"Underwriter"), the inclusion of the Registrable Securities, when added to the
securities being registered by the Company or the selling stockholder(s), will
exceed the maximum amount of the Company's securities which can be marketed (i)
at a price reasonably related to their then current market value, or (ii)
without materially and adversely affecting the entire offering, the Company
shall nevertheless register all or any portion of the Registrable Securities
required to be so registered but such Registrable Securities shall not be sold
by the Holders until 90 days after the registration statement for such offering
has become effective; and provided further that, if any securities are
registered for sale on behalf of other stockholders in such offering and such
stockholders have not agreed to defer such sale until the expiration of such 90
day period, the number of securities to be sold by all stockholders in such
public offering during such 90 day period shall be apportioned pro rata among
all such selling stockholders, including all holders of the Registrable
Securities, according to the total amount of securities of the Company proposed
to be sold by said selling stockholders, including all holders of the
Registrable Securities.

                  5.2.2 Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including any filing fees
payable to the National Association of Securities Dealers, Inc., but the Holders
shall pay any and all underwriting commissions and the expenses of any legal
counsel selected by the Holders to represent them in connection with the sale of
the Registrable Securities. In the event of such a proposed registration, the
Company shall furnish the then Holders of outstanding Registrable Securities
with not less than thirty days written notice prior to the proposed date of
filing of such registration statement. Such notice to the Holders shall continue
to be given for each registration statement filed by the Company until such time
as all of the Registrable Securities have been sold by the Holder. The holders
of the Registrable Securities shall exercise the "piggy-back" rights provided
for herein by giving written notice, within twenty days of the receipt of the
Company's notice of its intention to file a registration statement. The Company
shall cause any registration statement filed pursuant to the above "piggy-back"
rights to remain effective until all Registrable Securities thereunder have been
sold, or are freely saleable, without restriction, under an exemption from the
registration requirements. Nothing contained in this Warrant shall be construed
as requiring any Holder to exercise this Warrant or any part thereof prior to
the initial filing of any registration statement or the effectiveness thereof.

         5.3      General Terms

                  5.3.1 Indemnification.

                           (a) The Company shall indemnify the Holder(s) of the
Registrable Securities to be sold pursuant to any registration statement
hereunder and any underwriter or person deemed to be an underwriter

                                       4
<PAGE>

under the Act and each person, if any, who controls such Holders or underwriters
or persons deemed to be underwriters within the meaning of Section 15 of the Act
or Section 20(a) of the Securities Exchange Act of 1934, as amended ("Exchange
Act"), against all loss, claim, damage, expense or liability (including all
reasonable attorneys' fees and other expenses reasonably incurred in
investigating, preparing or defending against any claim whatsoever) to which any
of them may become subject under the Act, the Exchange Act or otherwise, arising
from such registration statement. The Holder(s) of the Registrable Securities to
be sold pursuant to such registration statement, and their successors and
assigns, shall severally, and not jointly, indemnify the Company, against all
loss, claim, damage, expense or liability (including all reasonable attorneys'
fees and other expenses reasonably incurred in investigating, preparing or
defending against any claim whatsoever) to which they may become subject under
the Act, the Exchange Act or otherwise, arising from information furnished by or
on behalf of such Holders, in writing, for specific inclusion in such
registration statement.

                           (b) If any action is brought against a party hereto,
("Indemnified Party") in respect of which indemnity may be sought against the
other party ("Indemnifying Party"), such Indemnified Party shall promptly notify
Indemnifying Party in writing of the institution of such action and Indemnifying
Party shall assume the defense of such action, including the employment and fees
of counsel reasonably satisfactory to the Indemnified Party. Such Indemnified
Party shall have the right to employ its or their own counsel in any such case,
but the fees and expenses of such counsel shall be at the expense of such
Indemnified Party unless (i) the employment of such counsel shall have been
authorized in writing by Indemnifying Party in connection with the defense of
such action, or (ii) Indemnifying Party shall not have employed counsel to
defend such action, or (iii) such Indemnified Party shall have been advised by
counsel that there may be one or more legal defenses available to it which may
result in a conflict between the Indemnified Party and Indemnifying Party (in
which case Indemnifying Party shall not have the right to direct the defense of
such action on behalf of the Indemnified Party), in any of which events, the
reasonable fees and expenses of not more than one additional firm of attorneys
designated in writing by the Indemnified Party shall be borne by Indemnifying
Party. Notwithstanding anything to the contrary contained herein, if Indemnified
Party shall assume the defense of such action as provided above, Indemnifying
Party shall not be liable for any settlement of any such action effected without
its written consent.

                           (c) If the indemnification or reimbursement provided
for hereunder is finally judicially determined by a court of competent
jurisdiction to be unavailable to an Indemnified Party (other than as a
consequence of a final judicial determination of willful misconduct, bad faith
or gross negligence of such Indemnified Party), then Indemnifying Party agrees,
in lieu of indemnifying such Indemnified Party, to contribute to the amount paid
or payable by such Indemnified Party (i) in such proportion as is appropriate to
reflect the relative benefits received, or sought to be received, by
Indemnifying Party on the one hand and by such Indemnified Party on the other or
(ii) if (but only if) the allocation provided in clause (i) of this sentence is
not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in such clause (i) but also the
relative fault of Indemnifying Party and of such Indemnified Party; provided,
however, that in no event shall the aggregate amount contributed by a Holder
exceed the profit, if any, earned by such Holder as a result of the exercise by
him of the Warrants and the sale by him of the underlying shares of Common
Stock.

                           (d) The rights accorded to Indemnified Parties
hereunder shall be in addition to any rights that any Indemnified Party may have
at common law, by separate agreement or otherwise.

                  5.3.2 Exercise of Warrants. Nothing contained in this Warrant
shall be construed as requiring the Holder(s) to exercise their Warrants prior
to or after the initial filing of any registration statement or the
effectiveness thereof.

                  5.3.3 Documents Delivered to Holders. The Company shall
furnish to each Holder participating in any of the foregoing offerings and to
each Underwriter of any such offering, if any, a signed

                                       5
<PAGE>

counterpart, addressed to such Holder or Underwriter, of (i) an opinion of
counsel to the Company, dated the effective date of such registration statement
(and, if such registration includes an underwritten public offering, an opinion
dated the date of the closing under any underwriting agreement related thereto),
and (ii) a "cold comfort" letter dated the effective date of such registration
statement (and, if such registration includes an underwritten public offering, a
letter dated the date of the closing under the underwriting agreement) signed by
the independent public accountants who have issued a report on the Company's
financial statements included in such registration statement, in each case
covering substantially the same matters with respect to such registration
statement (and the prospectus included therein) and, in the case of such
accountants' letter, with respect to events subsequent to the date of such
financial statements, as are customarily covered in opinions of issuer's counsel
and in accountants' letters delivered to underwriters in underwritten public
offerings of securities. The Company shall also deliver promptly to each Holder
participating in the offering requesting the correspondence and memoranda
described below and to the managing underwriter copies of all correspondence
between the Commission and the Company, its counsel or auditors and all
memoranda relating to discussions with the Commission or its staff with respect
to the registration statement and permit each Holder and underwriter to do such
investigation, upon reasonable advance notice, with respect to information
contained in or omitted from the registration statement as it deems reasonably
necessary to comply with applicable securities laws or rules of the NASD. Such
investigation shall include access to books, records and properties and
opportunities to discuss the business of the Company with its officers and
independent auditors, all to such reasonable extent and at such reasonable times
and as often as any such Holder shall reasonably request.

6.       Adjustments

         6.1      Adjustments to Exercise Price and Number of Securities. The
Exercise Price and the number of shares of Common Stock underlying this Warrant
shall be subject to adjustment from time to time as hereinafter set forth:

                  6.1.1 Stock Dividends - Recapitalization, Reclassification,
Split-Ups. If, after the date hereof, and subject to the provisions of Section
6.2 below, the number of outstanding shares of Common Stock is increased by a
stock dividend on the Common Stock payable in shares of Common Stock or by a
split-up, recapitalization or reclassification of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares
of Common Stock issuable on exercise of this Warrant shall be increased in
proportion to such increase in outstanding shares.

                  6.1.2 Aggregation of Shares. If after the date hereof, and
subject to the provisions of Section 6.2, the number of outstanding shares of
Common Stock is decreased by a consolidation, combination or reclassification of
shares of Common Stock or other similar event, then, upon the effective date
thereof, the number of shares of Common Stock issuable on exercise of this
Warrant shall be decreased in proportion to such decrease in outstanding shares.

                  6.1.3 Adjustments in Exercise Price. Whenever the number of
shares of Common Stock purchasable upon the exercise of this Warrant is
adjusted, as provided in this Section 6.1, the Exercise Price shall be adjusted
(to the nearest cent) by multiplying such Exercise Price immediately prior to
such adjustment by a fraction (x) the numerator of which shall be the number of
shares of Common Stock purchasable upon the exercise of this Warrant immediately
prior to such adjustment, and (y) the denominator of which shall be the number
of shares of Common Stock so purchasable immediately thereafter.

                  6.1.4 Replacement of Securities upon Reorganization, etc. In
case of any reclassification or reorganization of the outstanding shares of
Common Stock other than a change covered by Section 6.1.1 hereof or which solely
affects the par value of such shares of Common Stock, or in the case of any
merger or consolidation of the Company with or into another corporation (other
than a consolidation or merger in which the Company is

                                       6
<PAGE>

the continuing corporation and which does not result in any reclassification or
reorganization of the outstanding shares of Common Stock), or in the case of any
sale or conveyance to another corporation or entity of the property of the
Company as an entirety or substantially as an entirety in connection with which
the Company is dissolved, the Holder of this Warrant shall have the right
thereafter (until the expiration of the right of exercise of this Warrant) to
receive upon the exercise hereof, for the same aggregate Exercise Price payable
hereunder immediately prior to such event, the kind and amount of shares of
stock or other securities or property (including cash) receivable upon such
reclassification, reorganization, merger or consolidation, or upon a dissolution
following any such sale or other transfer, by a Holder of the number of shares
of Common Stock of the Company obtainable upon exercise of this Warrant
immediately prior to such event; and if any reclassification also results in a
change in shares of Common Stock covered by Sections 6.1.1 or 6.1.2, then such
adjustment shall be made pursuant to Sections 6.1.1, 6.1.2, 6.1.3 and this
Section 6.1.4. The provisions of this Section 6.1.4 shall similarly apply to
successive reclassifications, reorganizations, mergers or consolidations, sales
or other transfers.

                  6.1.5 Changes in Form of Warrant. This form of Warrant need
not be changed because of any change pursuant to this Section, and Warrants
issued after such change may state the same Exercise Price and the same number
of shares of Common Stock and Warrants as are stated in the Warrants initially
issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Warrants reflecting a required or permissive change shall not be deemed
to waive any rights to a prior adjustment or the computation thereof.

         6.2      Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
upon the exercise of this Warrant, nor shall it be required to issue scrip or
pay cash in lieu of any fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up to
the nearest whole number of shares of Common Stock or other securities,
properties or rights.

7.       Reservation and Listing. The Company shall at all times reserve and
keep available out of its authorized shares of Common Stock, solely for the
purpose of issuance upon exercise of this Warrant, such number of shares of
Common Stock or other securities, properties or rights as shall be issuable upon
the exercise thereof. The Company covenants and agrees that, upon exercise of
the Warrants and payment of the Exercise Price therefor, all shares of Common
Stock and other securities issuable upon such exercise shall be duly and validly
issued, fully paid and non-assessable and not subject to preemptive rights of
any stockholder. As long as the Warrants shall be outstanding, the Company shall
use its best efforts to cause all shares of Common Stock issuable upon exercise
of the Warrants to be listed (subject to official notice of issuance) on all
securities exchanges (or, if applicable on Nasdaq) on which the Common Stock is
then listed and/or quoted.

8.       Certain Notice Requirements.

         8.1      Holder's Right to Receive Notice. Nothing herein shall be
construed as conferring upon the Holders the right to vote or consent or to
receive notice as a stockholder for the election of directors or any other
matter, or as having any rights whatsoever as a stockholder of the Company. If,
however, at any time prior to the expiration of the Warrants and their exercise,
any of the events described in Section 8.2 shall occur, then, in one or more of
said events, the Company shall give written notice of such event at least
fifteen days prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of the
closing of the transfer books, as the case may be.

         8.2      Events Requiring Notice. The Company shall be required to give
the notice described in this Section 8 upon one or more of the following events:
(i) if the Company shall take a record of the holders of its shares of Common
Stock for the purpose of entitling them to receive a dividend or distribution,
or (ii) the

                                       7
<PAGE>

Company shall offer to all the holders of its Common Stock any additional shares
of capital stock of the Company or securities convertible into or exchangeable
for shares of capital stock of the Company, or any option, right or warrant to
subscribe therefor, or (iii) a merger or reorganization in which the Company is
not the surviving party, or (iv) a dissolution, liquidation or winding up of the
Company (other than in connection with a consolidation or merger) or a sale of
all or substantially all of its property, assets and business shall be proposed.

         8.3      Notice of Change in Exercise Price. The Company shall,
promptly after an event requiring a change in the Exercise Price pursuant to
Section 6 hereof, send notice to the Holders of such event and change ("Price
Notice"). The Price Notice shall describe the event causing the change and the
method of calculating same and shall be certified as being true and accurate by
the Company's President and Chief Financial Officer.

         8.4      Transmittal of Notices. All notices, requests, consents and
other communications under this Warrant shall be in writing and shall be deemed
to have been duly made on the date of delivery if delivered personally or sent
by overnight courier, with acknowledgment of receipt by the party to which
notice is given, or on the fifth day after mailing if mailed to the party to
whom notice is to be given, by registered or certified mail, return receipt
requested, postage prepaid and properly addressed as follows: (i) if to the
registered Holder of this Warrant, to the address of such Holder as shown on the
books of the Company, or (ii) if to the Company, to its principal executive
office.

9.       Miscellaneous.

         9.1      Headings. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this Warrant.

         9.2      Entire Agreement. This Warrant (together with the other
agreements and documents being delivered pursuant to or in connection with this
Warrant) constitutes the entire agreement of the parties hereto with respect to
the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject
matter hereof.

         9.3      Binding Effect. This Warrant shall inure solely to the benefit
of and shall be binding upon, the Holder and the Company and their respective
successors, legal representatives and assigns, and no other person shall have or
be construed to have any legal or equitable right, remedy or claim under or in
respect of or by virtue of this Warrant or any provisions herein contained.

         9.4      Governing Law; Submission to Jurisdiction. This Warrant shall
be governed by and construed and enforced in accordance with the law of the
State of New York, without giving effect to conflict of laws. The Company hereby
agrees that any action, proceeding or claim against it arising out of, or
relating in any way to this Warrant shall be brought and enforced in the courts
of the State of New York or of the United States of America for the Southern
District of New York, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. The Company hereby waives any objection to such
exclusive jurisdiction and that such courts represent an inconvenient forum. Any
process or summons to be served upon the Company may be served by transmitting a
copy thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the
Company in any action, proceeding or claim. The Company agrees that the
prevailing party(ies) in any such action shall be entitled to recover from the
other party(ies) all of its reasonable attorneys' fees and expenses relating to
such action or proceeding and/or incurred in connection with the preparation
therefor.

                                       8
<PAGE>

         9.5      Waiver, Etc. The failure of the Company or the Holder to at
any time enforce any of the provisions of this Warrant shall not be deemed or
construed to be a waiver of any such provision, nor to in any way affect the
validity of this Warrant or any provision hereof or the right of the Company or
any Holder to thereafter enforce each and every provision of this Warrant. No
waiver of any breach, non-compliance or non-fulfillment of any of the provisions
of this Warrant shall be effective unless set forth in a written instrument
executed by the party or parties against whom or which enforcement of such
waiver is sought; and no waiver of any such breach, non-compliance or
non-fulfillment shall be construed or deemed to be a waiver of any other or
subsequent breach, non-compliance or non-fulfillment.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officer as of the 12th day of January, 2001.

                                 SURGILIGHT, INC.

                                 By: /s/ J. T. Lin
                                     -------------------------------------------
                                    Name: Dr. J. T. Lin
                                    Title: President and Chief Executive Officer

                                       9
<PAGE>

Form to be used to exercise Warrant:

SurgiLight, Inc.
12001 Science Drive, Ste 140
Orlando, Florida 32826

Date:  _____________________, 20___

                  The undersigned hereby elects irrevocably to exercise the
within Warrant and to purchase ________ shares of Common Stock of
_________________________ and hereby makes payment of $____________ (at the rate
of $_________ per share of Common Stock) in payment of the Exercise Price
pursuant thereto. Please issue the Common Stock as to which this Warrant is
exercised in accordance with the instructions given below.

                                       or

                  The undersigned hereby elects irrevocably to convert its right
to purchase ____________ shares of Common Stock purchasable under the within
Warrant into __________ shares of Common Stock of
__________________________________________ (based on a "Market Price" of
$________ per share of Common Stock). Please issue the Common Stock in
accordance with the instructions given below.

                                    ____________________________________________
                                    Signature

___________________________
Signature Guaranteed

                  NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name              ________________________________________________________
                            (Print in Block Letters)

Address  ________________________________________________________

                                       10
<PAGE>

Form to be used to assign Warrant:

                                   ASSIGNMENT

                  (To be executed by the registered Holder to effect a transfer
of the within Warrant):

                  FOR VALUE RECEIVED, ________________________________ does
hereby sell, assign and transfer unto _________________________________ the
right to purchase _____________________ shares of Common Stock of
_________________________________ ("Company") evidenced by the within Warrant
and does hereby authorize the Company to transfer such right on the books of the
Company.

Dated:   ____________________, 20____

                                    ____________________________________________
                                    Signature

                  NOTICE: The signature to this form must correspond with the
name as written upon the face of the within Warrant in every particular without
alteration or enlargement or any change whatsoever, and must be guaranteed by a
bank, other than a savings bank, or by a trust company or by a firm having
membership on a registered national securities exchange.

                                       11

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