Document:

Exhibit 4(c)

THIS WARRANT AND ANY SECURITIES  ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES
LAW OF ANY  STATE  OF THE  UNITED  STATES  AND MAY NOT BE SOLD,  TRANSFERRED  OR
OTHERWISE  DISPOSED OF EXCEPT  PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION  TO THE  REGISTRATION  REQUIREMENTS  OF SUCH ACT AND SUCH  LAWS.  THIS
WARRANT AND SUCH SECURITIES MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE  DISPOSED
OF EXCEPT IN COMPLIANCE  WITH THE  CONDITIONS  SPECIFIED IN THIS WARRANT AND THE
SECURITIES  PURCHASE AGREEMENT DATED AS OF JANUARY [ ], 2000 BY AND AMONG CAPITA
RESEARCH GROUP, INC. AND [ ].

                           CAPITA RESEARCH GROUP, INC.

                         A COMMON STOCK PURCHASE WARRANT

No. W-A[  ]                   JANUARY [   ], 2000

                             Warrant to Purchase [ ]
                               Shares of Common Stock par value $.001 per share

                  CAPITA  RESEARCH  GROUP,   INC.,  a  Nevada  corporation  (the
"Company"),  for value  received,  hereby  certifies  that [NAME] or  registered
assigns  (the  "Holder"),  is  entitled  to  purchase  from the Company [ ] duly
authorized, validly issued, fully paid and nonassessable shares of Common Stock,
par value $.001 per share,  of the Company (the "Common  Stock"),  at a purchase
price  equal to $.50 per  share,  at any time or from time to time prior to 5:00
P.M.,  New York City  time,  on  January 1, 2005 (the  "Expiration  Date"),  all
subject  to the  terms,  conditions  and  adjustments  set  forth  below in this
Warrant.

                  This  Warrant is one of the A Common Stock  Purchase  Warrants
(collectively,  the "Warrants", such term to include any such warrants issued in
substitution therefor) originally issued pursuant to the terms of the Securities
Purchase Agreement,  dated as of January [ ], 2000, by and among the Company and
the "Buyers"  signatory  thereto (the "Purchase  Agreement").  Capitalized terms
used herein and not otherwise  defined  herein shall have the meanings  assigned
such terms in the Purchase Agreement.

                  After the Closing  Date the Company is to register  the Common
Stock  issuable  pursuant  to this  Warrant  with the  Securities  and  Exchange
Commission  pursuant to the terms of the  Registration  Rights  Agreement  dated
January [ ], 2000.

                                        1
<PAGE>

                  1.       Definitions.  As  used  herein,  unless  the  context
otherwise requires, the following terms shall have the meanings indicated:

                  "Additional  Shares of Common  Stock"  shall  mean all  shares
(including  treasury  shares) of Common  Stock  issued or sold (or,  pursuant to
Section 3.3 or 3.4,  deemed to be issued) by the Company  after the date hereof,
whether or not subsequently reacquired or retired by the Company, other than

                  (a) (i) shares of Common Stock issued upon the exercise of the
         Warrants, (ii) shares of Common Stock issued upon the exercise of the B
         Common Stock Purchase Warrants,  (iii) shares of Common Stock issued at
         the  Closing  under the  Purchase  Agreement  and (iv)  such  number of
         additional  shares  of Common  Stock as may  become  issuable  upon the
         exercise of the Warrants by reason of adjustments  required pursuant to
         the anti-dilution  provisions  applicable to such Warrants as in effect
         on the date hereof; and

                  (b)      shares of Common  Stock  issued  pursuant to Approved
         Stock Plans; and

                  (c)      shares issued upon exercise of options,  warrants and
         other convertible securities outstanding as of the date hereof; and

                  (d)  shares  issued  to bona  fide  suppliers  or  vendors  in
         consideration  for services or supplies rendered to the Company or to a
         bank or other  financial  institution  as an inducement to enter into a
         financing  arrangement  with the Company in an amount not to exceed 10%
         of the outstanding capital stock of the Company.

                  "Approved  Stock  Plan"  shall  mean  any  contract,  plan  or
agreement  which has been or shall be approved by the Board of  Directors of the
Company,  pursuant  to which  the  Company's  securities  may be  issued  to any
employee, officer, director, consultant or other service provider of the Company
in an  aggregate  amount that does not exceed  110% of the number of  securities
issuable pursuant to any currently existing Approved Stock Plan.

                  "B Common Stock Purchase  Warrants"  shall mean such warrants,
substantially  in the form  hereof,  to  acquire  shares of Common  Stock of the
Company at a purchase  price  equal to $1.00 per share,  issued  pursuant to the
terms of the Purchase Agreement.

                  "Business  Day" shall mean any day other than a Saturday  or a
Sunday or a day on which commercial banking institutions in the City of New York
are  authorized by law to be closed.  Any reference to "days"  (unless  Business
Days are specified) shall mean calendar days.

                  "Buy In Actual Damages" shall have the meaning  assigned to it
in Section 2.6 of this Warrant.

                  "Closing  Bid  Prices"  shall mean for any  security as of any
date,  the  closing  bid  price of such  security  on the  principal  securities
exchange or trade market where such  security is listed or trades as reported by
Bloomberg,  L.P. ("Bloomberg"),  or if the foregoing does not apply, the closing
bid price of such  security  in the  over-the-counter  market on the  electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid

                                        2
<PAGE>

price is reported for such security by Bloomberg,  the average of the bid prices
of any market  makers for such  security as reported in the "pink sheets" by the
National  Quotation  Bureau,  Inc. If the Closing Bid Price cannot be calculated
for such  security on such date,  as set forth  above,  the Closing Bid Price of
such  security  shall be the fair market value as determined in good faith by an
investment banking firm selected jointly by the Company and the Holder, with the
fees and expenses of such determination borne solely by the Company.

                  "Commission" shall mean the Securities and Exchange Commission
or any successor agency having jurisdiction to enforce the Securities Act.

                  "Common  Stock"  shall have the meaning  assigned to it in the
introduction  to this  Warrant,  such term to include  any stock into which such
Common  Stock  shall  have  been  changed  or  any  stock   resulting  from  any
reclassification  of such  Common  Stock,  and all  other  stock of any class or
classes (however designated) of the Company the holders of which have the right,
without  limitation as to amount,  either to all or to a share of the balance of
current  dividends and liquidating  dividends after the payment of dividends and
distributions on any shares entitled to preference.

                  "Company"  shall  have  the  meaning  assigned  to it  in  the
introduction  to this  Warrant,  such term to include any  corporation  or other
entity which shall succeed to or assume the obligations of the Company hereunder
in compliance with Section 4.

                  "Convertible   Securities"   shall  mean  any   evidences   of
indebtedness,  shares of stock  (other  than Common  Stock) or other  securities
directly or indirectly convertible into or exchangeable for Additional Shares of
Common Stock.

                  "Current  Market  Price"  shall  mean,  on any date  specified
herein,  the average of the daily Closing Bid Prices  during the 10  consecutive
trading days commencing 15 trading days before such date, except that, if on any
such date the shares of Common  Stock are not listed or admitted  for trading on
any national securities exchange or quoted in the  over-the-counter  market, the
Current Market Price shall be the "Fair Value" on such date.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time, and the rules and regulations  thereunder,  or any
successor statute.

                  "Expiration Date" shall have the meaning assigned to it in the
introduction to this Warrant.

                  "Fair Value" shall mean, on any date  specified  herein (i) in
the case of cash,  the  dollar  amount  thereof,  (ii) in the case of a security
admitted  for  trading  on any  national  securities  exchange  or quoted in the
over-the-counter  market, the Current Market Price, and (iii) in all other cases
as determined in good faith jointly by the Board of Directors of the Company and
the  Holder;  provided,  however,  that if such  parties  are  unable  to  reach
agreement within a reasonable period of time, the Fair Value shall be determined

                                        3
<PAGE>

in good faith by an independent  investment banking firm selected jointly by the
Company and the Holder or, if that selection  cannot be made within ten days, by
an  independent  investment  banking firm  selected by the American  Arbitration
Association in accordance with its rules, and provided further, that the Company
shall  pay all of the  fees  and  expenses  of any  third  parties  incurred  in
connection with determining the Fair Value.

                  "Options"  shall  mean any  rights,  options  or  warrants  to
subscribe for,  purchase or otherwise acquire either Additional Shares of Common
Stock or Convertible Securities.

                  "Other  Securities"  shall mean any stock  (other  than Common
Stock) and other  securities  of the Company or any other Person  (corporate  or
otherwise)  which the  holders of the  Warrants at any time shall be entitled to
receive, or shall have received,  upon the exercise of the Warrants,  in lieu of
or in addition to Common Stock,  or which at any time shall be issuable or shall
have been  issued in exchange  for or in  replacement  of Common  Stock or Other
Securities pursuant to Section 4 or otherwise.

                  "Person"  shall  mean  any  individual,   firm,   partnership,
corporation,  trust, joint venture,  association,  joint stock company,  limited
liability   company,   unincorporated   organization  or  any  other  entity  or
organization, including a government or agency or political subdivision thereof,
and shall include any successor (by merger or otherwise) of such entity.

                  "Purchase  Agreement" shall have the meaning assigned to it in
the introduction to this Warrant.

                  "Purchase  Price" shall mean the amount per share indicated in
the  introductory   paragraph  to  this  Warrant,   subject  to  adjustment  and
readjustment  from time to time as provided in Section 3, and, as so adjusted or
readjusted,  shall remain in effect until a further  adjustment or  readjustment
thereof is required by Section 3.

                  "Registration  Rights  Agreement"  shall mean the Registration
Rights  Agreement  dated as of January [ ], 2000,  substantially  in the form of
Exhibit C to the Purchase Agreement.

                  "Rights"  shall  have the  meaning  assigned  to it in Section
3.10.

                  "Securities  Act" shall mean the  Securities  Act of 1933,  as
amended  from time to time,  and the rules and  regulations  thereunder,  or any
successor statute.

                  "Warrants"  shall  have  the  meaning  assigned  to it in  the
introduction to this Warrant.

                                        4
<PAGE>

                  2.       Exercise of Warrant.
                           -------------------

                  2.1. Manner of Exercise;  Payment of the Purchase  Price.  (a)
This Warrant may be exercised by the Holder, in whole or in part, at any time or
from time to time prior to the Expiration  Date, by  surrendering to the Company
at its  principal  office (or such other  office or agency of the Company as the
Company may designate in a written notice to the Holder) this Warrant,  together
with the form of Election to Purchase  Shares attached hereto as Exhibit A (or a
reasonable  facsimile  thereof) duly executed by the Holder and  accompanied  by
payment of the  Purchase  Price as  described  below for the number of shares of
Common Stock specified in such form.

                  (b) Payment of the Purchase Price may be made in United States
currency by cash or delivery of a certified  check or bank draft  payable to the
order of the Company or by wire transfer to the account of the Company.

                  2.2.  When Exercise  Effective.  Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business
on the Business Day on which this Warrant  shall have been  surrendered  to, and
the  Purchase  Price  shall have been  received  by, the  Company as provided in
Section  2.1,  and at such time the Person or Persons in whose name or names any
certificate  or  certificates  for shares of Common Stock (or Other  Securities)
shall be issuable  upon such exercise as provided in Section 2.3 shall be deemed
to have become the holder or holders of record thereof for all purposes.

                  2.3. Delivery of Stock Certificates,  etc.; Charges, Taxes and
Expenses.  Subject to Section 2.5 (a) As soon as practicable after each exercise
of this Warrant, in whole or in part, and in any event within five Business Days
thereafter, the Company shall cause to be issued in such denominations as may be
requested  by Holder in the  Election  to  Purchase  Shares,  in the name of and
delivered to the Holder or,  subject the Purchase  Agreement,  as the Holder may
direct,

                  (i) a certificate  or  certificates,  or, if then  permissible
         under the  Securities  Act, at the Holder's  request to  electronically
         issue such shares (e.g., through DWAC or DTC), for the number of shares
         of Common  Stock (or Other  Securities)  to which the  Holder  shall be
         entitled upon such exercise plus, in lieu of issuance of any fractional
         share to which the Holder would otherwise be entitled,  if any, a check
         for the amount of cash  equal to the same  fraction  multiplied  by the
         Current  Market  Price  per  share  on the  date of  Warrant  exercise,
         provided,  however,  that in the event sufficient funds are not legally
         available  for the  payment  of such  amount,  the  number of shares of
         Common Stock which such  certificate(s)  represents shall be rounded up
         to the nearest whole number, and

                  (ii) in case such  exercise is for less than all of the shares
         of Common  Stock  purchasable  under  this  Warrant,  a new  Warrant or
         Warrants of like tenor,  for the balance of the shares of Common  Stock
         purchasable hereunder.

                  (b) Issuance of  certificates  for shares of Common Stock upon
the exercise of this Warrant  shall be made without  charge to the Holder hereof
for any issue or transfer tax or other incidental expense, in respect of the

                                        5
<PAGE>

issuance of such  certificates,  all of which such taxes and  expenses  shall be
paid by the Company,  except that any tax or expense  payable as a result of the
issuance of such  certificates  in a name other than that of the Holder shall be
paid by the Holder.

                  2.4.  Company to Reaffirm  Obligations.  The Company shall, at
the time of each  exercise  of this  Warrant,  upon the  request  of the  Holder
hereof,  acknowledge  in writing  its  continuing  obligation  to afford to such
Holder all rights to which such Holder shall  continue to be entitled after such
exercise in  accordance  with the terms of this  Warrant,  provided  that if the
Holder of this Warrant shall fail to make any such  request,  such failure shall
not affect the continuing obligation of the Company to afford such rights to the
Holder.

                  2.5.  Exercise  Disputes.  In the  case  of any  dispute  with
respect to the number of shares to be issued upon exercise of this Warrant,  the
Company shall  promptly  issue such number of shares of Common Stock that is not
disputed and shall submit the disputed determinations or arithmetic calculations
to the  Holder via  facsimile  within  two (2)  Business  Days of receipt of the
Holder's  Election to Purchase Shares.  If the Holder and the Company are unable
to agree  as to the  determination  of such  number  of  shares  within  two (2)
Business Days of such disputed  determination  or arithmetic  calculation  being
submitted to the Holder, then the Company shall in accordance with this Section,
submit via  facsimile the disputed  determination  to an  independent  reputable
accounting firm of national  standing,  selected  jointly by the Company and the
Holder.   The  Company  shall  cause  such   accounting   firm  to  perform  the
determinations  or  calculations  and notify the  Company  and the Holder of the
results  within  forty-eight  (48) hours from the time it receives  the disputed
determinations or calculations.  Such accounting firm's  determination  shall be
binding upon all parties absent  manifest  error.  The Company shall then on the
next Business Day issue  certificate(s)  representing the appropriate  number of
shares of Common Stock in accordance with such accounting  firm's  determination
and this Section.  All fees and expenses of such  determination  and calculation
shall be borne by the Company.

                  2.6.  Failure to  Deliver  Common  Stock If, at any time,  the
Holder of this Warrant submits this Warrant,  an Election to Purchase Shares and
payment to the  Company of the  Purchase  Price for each of the shares of Common
Stock  specified in the Election to Purchase  Shares in accordance  with Section
2.1 above, and the Company, for any reason, fails to deliver, on or prior to the
last  possible date which the Company could have issued such Common Stock to the
Holder  without  violating  this Section 2, the number of shares of Common Stock
for which the Holder is  entitled  upon such  exercise,  the  Company  shall pay
damages to the Holder equal to the greater of (a) actual damages incurred by the
Holder as a result of the Holder's needing to "buy in" shares of Common Stock to
the extent necessary to satisfy its securities  delivery  requirements  ("Buy In
Actual  Damages")  and (b) if the  Company  fails to deliver  such  certificates
within five days after the last  possible  date on which the Company  could have
issued such Common Stock to the Holder without violating this Section 2, on each
date such  exercise  is not  timely  effected  in an  amount  equal to 1% of the
product of (i) the number of shares of Common  Stock not issued to the Holder on
a timely  basis and to which the Holder is  entitled  and (ii) the  Closing  Bid
Price of the Common Stock on the last possible date which the Company could have
issued such Common Stock to the Holder without violating this Section 2.

                                        6
<PAGE>

                  3.       Adjustment of Common Stock Issuable Upon Exercise.
                           -------------------------------------------------

                  3.1.     Adjustment of Number of Shares.
                           ------------------------------

                           Upon  each  adjustment  of the  Purchase  Price  as a
result of the calculations made in this Section 3, this Warrant shall thereafter
evidence the right to receive,  at the adjusted  Purchase Price,  that number of
shares of Common Stock  (calculated  to the nearest  one-hundredth)  obtained by
dividing  (i) the  product  of the  aggregate  number of shares  covered by this
Warrant  immediately  prior to such  adjustment and the Purchase Price in effect
immediately  prior to such adjustment of the Purchase Price by (ii) the Purchase
Price in effect immediately after such adjustment of the Purchase Price.

                  3.2.     Adjustment of Purchase Price.
                           ----------------------------

                  3.2.1.  Issuance of Additional Shares of Common Stock. In case
the Company at any time or from time to time after the date  hereof  shall issue
or sell Additional Shares of Common Stock (including Additional Shares of Common
Stock  deemed  to be  issued  pursuant  to  Section  3.3  or 3.4  but  excluding
Additional  Shares of Common Stock  purchasable upon exercise of Rights referred
to in Section 3.10), without consideration or for a consideration per share less
than  the fair  market  value  of such  additional  shares  of  Common  Stock as
determined  in good faith by the Board of  Directors of the Company as in effect
immediately prior to such issue or sale, then, and in each such case, subject to
Section 3.8, the Purchase Price shall be reduced,  concurrently  with such issue
or sale,  to a price  (calculated  to the nearest .001 of a cent)  determined by
multiplying such Purchase Price by a fraction

                  (a) the  numerator of which shall be the sum of (i) the number
         of shares of Common Stock  outstanding  immediately prior to such issue
         or sale and (ii) the number of shares of Common  Stock  which the gross
         consideration  received  by the  Company  for the total  number of such
         Additional  Shares of Common Stock so issued or sold would  purchase at
         such Current Market Price, and

                  (b) the  denominator of which shall be the number of shares of
         Common Stock outstanding immediately after such issue or sale, provided
         that, for the purposes of this Section 3.2.1, (x) immediately after any
         Additional  Shares of  Common  Stock  are  deemed  to have been  issued
         pursuant to Section 3.3 or 3.4, such Additional  Shares shall be deemed
         to be  outstanding,  and (y) treasury  shares shall not be deemed to be
         outstanding.

                  3.2.2. Extraordinary Dividends and Distributions.  In case the
Company at any time or from time to time after the date  hereof  shall  declare,
order,  pay  or  make a  dividend  or  other  distribution  (including,  without
limitation, any distribution of other or additional stock or other securities or
property  or  Options  by  way  of  dividend  or   spin-off,   reclassification,
recapitalization or similar corporate  rearrangement) on the Common Stock (other
than a cash dividend payable out of earnings),  then, in each such case, subject
to Section 3.8, the Purchase Price in effect  immediately  prior to the close of
business on the record date fixed for the determination of holders of any class

                                        7
<PAGE>

of  securities  entitled  to receive  such  dividend  or  distribution  shall be
reduced,  effective as of the close of business on such record date,  to a price
determined by multiplying such Purchase Price by a fraction

                  (x) the  numerator of which shall be the Current  Market Price
         in effect on such  record  date or, if the  Common  Stock  trades on an
         ex-dividend basis, on the date prior to the commencement of ex-dividend
         trading,   less  the  Fair  Value  of  such  dividend  or  distribution
         applicable to one share of Common Stock, and

                  (y) the  denominator  of which  shall be such  Current  Market
         Price.

                  3.3. Treatment of Options and Convertible Securities.  In case
the Company at any time or from time to time after the date hereof  shall issue,
sell,  grant or  assume,  or shall fix a record  date for the  determination  of
holders of any class of  securities  of the Company  entitled  to  receive,  any
Options or  Convertible  Securities  (whether or not the rights  thereunder  are
immediately  exercisable),  then,  and in each such case,  the maximum number of
Additional  Shares of Common  Stock  (as set  forth in the  instrument  relating
thereto,  without  regard to any provisions  contained  therein for a subsequent
adjustment of such number) issuable upon the exercise of such Options or, in the
case of Convertible  Securities and Options therefor, the conversion or exchange
of such  Convertible  Securities,  shall be  deemed to be  Additional  Shares of
Common Stock issued as of the time of such issue,  sale, grant or assumption or,
in case such a record date shall have been fixed, as of the close of business on
such record date (or, if the Common Stock trades on an ex-dividend basis, on the
date prior to the  commencement  of  ex-dividend  trading),  provided  that such
Additional Shares of Common Stock shall not be deemed to have been issued unless
(i) the  consideration  per share  (determined  pursuant to Section 3.5) of such
shares would be less than the fair market value of such shares as  determined in
good faith by the Board of  Directors of the Company as in effect on the date of
and immediately  prior to such issue,  sale,  grant or assumption or immediately
prior to the close of business  on such  record  date (or,  if the Common  Stock
trades  on an  ex-dividend  basis,  on the  date  prior to the  commencement  of
ex-dividend  trading),  as the case may be and (ii)  such  Additional  Shares of
Common Stock are not purchasable pursuant to Rights referred to in Section 3.10,
and provided, further, that

                  (a)  whether  or not the  Additional  Shares of  Common  Stock
         underlying  such  Options or  Convertible  Securities  are deemed to be
         issued, no further  adjustment of the Purchase Price shall be made upon
         the  subsequent  issue or sale of  Convertible  Securities or shares of
         Common  Stock upon the exercise of such  Options or the  conversion  or
         exchange of such Convertible Securities;

                  (b) if such Options or  Convertible  Securities by their terms
         provide, with the passage of time or otherwise, for any increase in the
         consideration  payable to the  Company,  or  decrease  in the number of
         Additional  Shares  of  Common  Stock  issuable,   upon  the  exercise,
         conversion or exchange  thereof (by change of rate or  otherwise),  the
         Purchase  Price  computed  upon  the  original  issue,  sale,  grant or
         assumption  thereof (or upon the occurrence of the record date, or date
         prior to the commencement of ex-dividend  trading,  as the case may be,
         with respect thereto), and any subsequent adjustments based thereon,

                                        8
<PAGE>

         shall,  upon any such  increase  or  decrease  becoming  effective,  be
         recomputed to reflect such  increase or decrease  insofar as it affects
         such  Options,  or the  rights of  conversion  or  exchange  under such
         Convertible Securities, which are outstanding at such time;

                  (c) upon the  expiration  or  termination  (or purchase by the
         Company and cancellation or retirement) of any such Options which shall
         not have been  exercised or the  expiration of any rights of conversion
         or exchange under any such Convertible Securities which (or purchase by
         the Company and  cancellation  or  retirement  of any such  Convertible
         Securities  the rights of conversion or exchange under which) shall not
         have been  exercised,  the Purchase  Price  computed  upon the original
         issue, sale, grant or assumption thereof (or upon the occurrence of the
         record date, or date prior to the commencement of ex-dividend  trading,
         as  the  case  may  be,  with  respect  thereto),  and  any  subsequent
         adjustments  based  thereon,  shall,  upon  such  expiration  (or  such
         cancellation or retirement, as the case may be), be recomputed as if:

                           (i) in the  case  of  Options  for  Common  Stock  or
                  Convertible  Securities,  the only Additional Shares of Common
                  Stock  issued  or sold  were the  Additional  Shares of Common
                  Stock,  if any,  actually  issued or sold upon the exercise of
                  such Options or the conversion or exchange of such Convertible
                  Securities  and the  consideration  received  therefor was the
                  consideration  actually received by the Company for the issue,
                  sale, grant or assumption of all such Options,  whether or not
                  exercised,  plus the  consideration  actually  received by the
                  Company  upon such  exercise,  or for the issue or sale of all
                  such Convertible  Securities which were actually  converted or
                  exchanged, plus the additional consideration, if any, actually
                  received by the Company upon such conversion or exchange, and

                           (ii)  in  the  case  of   Options   for   Convertible
                  Securities,  only the Convertible Securities, if any, actually
                  issued or sold upon the  exercise of such  Options were issued
                  at the time of the issue or sale,  grant or assumption of such
                  Options, and the consideration received by the Company for the
                  Additional  Shares  of Common  Stock  deemed to have then been
                  issued was the consideration  actually received by the Company
                  for the issue,  sale, grant or assumption of all such Options,
                  whether or not  exercised,  plus the  consideration  deemed to
                  have been  received by the Company  (pursuant  to Section 3.5)
                  upon the  issue or sale of such  Convertible  Securities  with
                  respect to which such Options were actually exercised;

                  (d) no  readjustment  pursuant to subdivision (b) or (c) above
         shall have the effect of increasing  the Purchase Price by an amount in
         excess  of the  amount of the  adjustment  thereof  originally  made in
         respect of the issue,  sale,  grant or  assumption  of such  Options or
         Convertible Securities; and

                  (e) in the  case of any such  Options  which  expire  by their
         terms not more than 30 days  after  the date of issue,  sale,  grant or
         assumption thereof, no adjustment of the Purchase Price shall be made

                                        9
<PAGE>

         until the  expiration or exercise of all such Options,  whereupon  such
         adjustment  shall be made in the manner  provided  in  subdivision  (c)
         above.

                  3.4. Treatment of Stock Dividends,  Stock Splits, etc. In case
the Company at any time or from time to time after the date hereof shall declare
or pay any dividend on the Common Stock payable in Common Stock, or shall effect
a subdivision of the outstanding shares of Common Stock into a greater number of
shares of Common Stock (by  reclassification  or otherwise  than by payment of a
dividend in Common  Stock),  then, and in each such case,  Additional  Shares of
Common  Stock  shall be deemed to have been  issued  (a) in the case of any such
dividend,  immediately  after the close of  business  on the record date for the
determination  of holders of any class of  securities  entitled to receive  such
dividend,  or (b) in the case of any such subdivision,  at the close of business
on the day immediately prior to the day upon which such corporate action becomes
effective.

                  3.5.     Computation  of  Consideration.  For the  purposes of
         this Section 3,

                  (a)      the  consideration  for  the  issue  or  sale  of any
         Additional Shares of Common Stock shall, irrespective of the accounting
         treatment of such consideration,

                           (i) insofar as it  consists  of cash,  be computed at
                  the amount of cash received by the Company,  without deducting
                  any   expenses   paid  or  incurred  by  the  Company  or  any
                  commissions or  compensation  paid or concessions or discounts
                  allowed to underwriters,  dealers or others performing similar
                  services in connection with such issue or sale,

                           (ii)  insofar as it consists  of property  (including
                  securities)  other than cash,  be  computed  at the Fair Value
                  thereof at the time of such issue or sale, and

                           (iii) in case  Additional  Shares of Common Stock are
                  issued or sold  together  with other  stock or  securities  or
                  other assets of the Company for a  consideration  which covers
                  both,  be the  portion  of  such  consideration  so  received,
                  computed as provided in clauses (i) and (ii) above,  allocable
                  to such Additional  Shares of Common Stock, such allocation to
                  be  determined  in the same  manner  that  the  Fair  Value of
                  property  not  consisting  of  cash  or  securities  is  to be
                  determined  as  provided  in the  definition  of "Fair  Value"
                  herein;

                  (b)  Additional  Shares  of Common  Stock  deemed to have been
         issued  pursuant to Section  3.3,  relating to Options and  Convertible
         Securities, shall be deemed to have been issued for a consideration per
         share determined by dividing

                           (i) the total amount, if any, received and receivable
                  by the Company as consideration for the issue,  sale, grant or
                  assumption  of  the  Options  or  Convertible   Securities  in
                  question,  plus the  minimum  aggregate  amount of  additional
                  consideration  (as  set  forth  in  the  instruments  relating
                  thereto, without regard to any provision contained therein for
                  a  subsequent  adjustment  of such  consideration  to  protect
                  against dilution) payable to the Company upon the exercise in

                                       10
<PAGE>

                  full of such  Options or the  conversion  or  exchange of such
                  Convertible   Securities  or,  in  the  case  of  Options  for
                  Convertible  Securities,  the  exercise  of such  Options  for
                  Convertible  Securities and the conversion or exchange of such
                  Convertible   Securities,   in  each   case   computing   such
                  consideration as provided in the foregoing subdivision (a),

                  by

                           (ii) the maximum number of shares of Common Stock (as
                  set forth in the instruments relating thereto,  without regard
                  to any provision contained therein for a subsequent adjustment
                  of such number to protect against dilution)  issuable upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible Securities; and

                  (c)  Additional  Shares  of Common  Stock  deemed to have been
         issued  pursuant to Section  3.4,  relating to stock  dividends,  stock
         splits, etc., shall be deemed to have been issued for no consideration.

                  3.6.   Adjustments   for   Combinations,   etc.  In  case  the
         outstanding  shares of Common Stock shall be combined or  consolidated,
         by  reclassification  or  otherwise,  into a lesser number of shares of
         Common Stock,  the Purchase Price in effect  immediately  prior to such
         combination or consolidation shall, concurrently with the effectiveness
         of such combination or consolidation, be proportionately increased.

                  3.7. Dilution in Case of Other  Securities.  In case any Other
         Securities  shall be issued or sold or shall become subject to issue or
         sale upon the conversion or exchange of any stock (or Other Securities)
         of the Company (or any issuer of Other  Securities  or any other Person
         referred  to in  Section  4)  or to  subscription,  purchase  or  other
         acquisition  pursuant to any  Options  issued or granted by the Company
         (or any such other  issuer or Person)  for a  consideration  such as to
         dilute,  on a basis  consistent  with the standards  established in the
         other provisions of this Section 3, the purchase rights granted by this
         Warrant, then, and in each such case, the computations, adjustments and
         readjustments  provided  for in  this  Section  3 with  respect  to the
         Purchase  Price  and the  number  of shares  purchasable  upon  Warrant
         exercise  shall be made as nearly as possible in the manner so provided
         and applied to determine  the amount of Other  Securities  from time to
         time receivable upon the exercise of the Warrants, so as to protect the
         holders of the Warrants against the effect of such dilution.

                  3.8. De Minimis  Adjustments.  If the amount of any adjustment
of the  Purchase  Price per share  required  pursuant to this Section 3 would be
less than $.01, such amount shall be carried forward and adjustment with respect
thereto made at the time of and together with any subsequent  adjustment  which,
together  with such amount and any other  amount or amounts so carried  forward,
shall  aggregate a change in the Purchase Price of at least $.01 per share.  All
calculations  under this Warrant  shall be made to the nearest .001 of a cent or
to the nearest one-hundredth of a share, as the case may be.

                                       11
<PAGE>

                  3.9. Abandoned Dividend or Distribution.  If 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 distribution (which results in an adjustment
to the Purchase  Price under the terms of this  Warrant) and shall,  thereafter,
and before such dividend or  distribution  is paid or delivered to  stockholders
entitled  thereto,  legally  abandon its plan to pay or deliver such dividend or
distribution,  then any  adjustment  made to the  Purchase  Price and  number of
shares of Common Stock purchasable upon Warrant exercise by reason of the taking
of such record shall be reversed, and any subsequent adjustments, based thereon,
shall be recomputed.

                  3.10. Shareholder Rights Plan.  Notwithstanding the foregoing,
in the event that the Company shall distribute  "poison pill" rights pursuant to
a "poison pill"  shareholder  rights plan (the "Rights"),  the Company shall, in
lieu of making any adjustment pursuant to Section 3.2.1 or Section 3.2.2 hereof,
make  proper  provision  so that each Holder who  exercises a Warrant  after the
record date for such  distribution  and prior to the expiration or redemption of
the Rights shall be entitled to receive upon such  exercise,  in addition to the
shares of Common Stock  issuable  upon such  exercise,  a number of Rights to be
determined as follows:  (i) if such exercise  occurs on or prior to the date for
the  distribution to the holders of Rights of separate  certificates  evidencing
such  Rights  (the  "Distribution  Date"),  the same number of Rights to which a
holder of a number of shares of Common  Stock  equal to the  number of shares of
Common Stock  issuable upon such exercise at the time of such exercise  would be
entitled in accordance  with the terms and  provisions of and  applicable to the
Rights;  and (ii) if such exercise occurs after the Distribution  Date, the same
number  of Rights to which a holder  of the  number  of  shares  into  which the
Warrant so exercised was exercisable  immediately prior to the Distribution Date
would have been entitled on the  Distribution  Date in accordance with the terms
and provisions of and applicable to the Rights,  and in each case subject to the
terms and conditions of the Rights.

                  4.       Consolidation, Merger, etc.
                           --------------------------

                  4.1.  Adjustments for Consolidation,  Merger,  Sale of Assets,
Reorganization,  etc.  In case the  Company  after  the date  hereof  (a)  shall
consolidate  with or merge into any other Person and shall not be the continuing
or surviving  corporation of such  consolidation or merger,  or (b) shall permit
any other Person to  consolidate  with or merge into the Company and the Company
shall be the  continuing  or  surviving  Person  but,  in  connection  with such
consolidation  or merger,  the Common Stock or Other Securities shall be changed
into or exchanged  for stock or other  securities of any other Person or cash or
any  other  property,  or (c) shall  transfer  all or  substantially  all of its
properties  or  assets  to any  other  Person,  or (d)  shall  effect a  capital
reorganization  or  reclassification  of the  Common  Stock or Other  Securities
(other than a capital reorganization or reclassification  resulting in the issue
of Additional  Shares of Common Stock for which adjustment in the Purchase Price
is  provided  in  Section  3.2.1 or 3.2.2),  then,  and in the case of each such
transaction,  proper  provision  shall be made so that,  upon the  basis and the
terms and in the manner  provided in this  Warrant,  the Holder of this Warrant,
upon the exercise hereof at any time after the  consummation of such transaction
shall be entitled to receive (at the aggregate  Purchase  Price in effect at the
time of such consummation for all Common Stock or Other Securities issuable upon
such exercise  immediately  prior to such  consummation),  in lieu of the Common
Stock  or  Other   Securities   issuable  upon  such  exercise   prior  to  such
consummation,  the amount of  securities,  cash or other  property to which such
Holder would actually have been entitled as a stockholder upon such consummation

                                       12
<PAGE>

if such Holder had exercised this Warrant immediately prior thereto,  subject to
adjustments  (subsequent to such  consummation) as nearly equivalent as possible
to the adjustments provided for in Sections 3 through 5.

                  4.2.  Assumption  of  Obligations.   Notwithstanding  anything
contained  in the Warrants or in the Purchase  Agreement  to the  contrary,  the
Company  shall not  effect any of the  transactions  described  in  clauses  (a)
through (d) of Section  4.1  unless,  prior to the  consummation  thereof,  each
Person  (other  than the  Company)  which may be  required to deliver any stock,
securities,  cash or  property  upon the  exercise  of this  Warrant as provided
herein  shall  assume,  by  written  instrument  delivered  to,  and  reasonably
satisfactory to, the Holder of this Warrant,  (a) the obligations of the Company
under this Warrant (and if the Company  shall survive the  consummation  of such
transaction,  such assumption shall be in addition to, and shall not release the
Company from, any continuing obligations of the Company under this Warrant), (b)
the obligations of the Company under the Purchase Agreement and the Registration
Rights  Agreement and (c) the obligation to deliver to the Holder such shares of
stock,  securities,  cash or  property  as,  in  accordance  with the  foregoing
provisions of this Section 4, the Holder may be entitled to receive.  Nothing in
this  Section 4 shall be deemed  to  authorize  the  Company  to enter  into any
transaction not otherwise permitted by the Purchase Agreement.

                  5. Other Dilutive Events.  In case any event shall occur as to
which  the  provisions  of  Section  3 or  Section  4  hereof  are not  strictly
applicable  or if strictly  applicable  would not fairly  protect  the  purchase
rights of the Holder in accordance  with the essential  intent and principles of
such  Sections,  then, in each such case,  the Board of Directors of the Company
shall make an adjustment in the  application of such  provisions,  in accordance
with such essential intent and principles, so as to preserve,  without dilution,
the purchase rights represented by this Warrant.

                  6. No  Dilution  or  Impairment.  The  Company  shall not,  by
amendment of its  certificate  of  incorporation  or through any  consolidation,
merger,  reorganization,  transfer  of  assets,  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 action as may be reasonably  necessary or  appropriate  in order to protect
the rights of the Holder of this Warrant against  dilution or other  impairment.
Without  limiting the  generality  of the  foregoing,  the Company (a) shall not
permit the par value of any shares of stock receivable upon the exercise of this
Warrant to exceed the amount payable therefor upon such exercise, (b) shall take
all such action as may be necessary or appropriate in order that the Company may
validly and legally  issue fully paid and  nonassessable  shares of stock,  free
from all taxes, liens, security interests,  encumbrances,  preemptive rights and
charges on the exercise of the Warrants from time to time outstanding, (c) shall
not take any action which results in any adjustment of the Purchase Price if the
total number of shares of Common Stock (or Other Securities)  issuable after the
action upon the exercise of all of the Warrants would exceed the total number of
shares of Common Stock (or Other  Securities)  then  authorized by the Company's
certificate  of  incorporation  and available for the purpose of issue upon such
exercise,  and (d)  shall  not issue  any  capital  stock of any class  which is
preferred as to dividends or as to the  distribution of assets upon voluntary or
involuntary  dissolution,  liquidation or  winding-up,  unless the rights of the
holders  thereof shall be limited to a fixed sum or percentage of par value or a
sum determined by reference to a formula based on a published  index of interest
rates,  an interest  rate  publicly  announced by a financial  institution  or a
similar indicator of interest rates in respect of participation in dividends and
to a fixed sum or percentage of par value in any such distribution of assets.

                                       13
<PAGE>

                  7.  Certificate  as  to  Adjustments.  In  each  case  of  any
adjustment or readjustment  in the shares of Common Stock (or Other  Securities)
issuable  upon the exercise of this  Warrant,  the Company at its expense  shall
promptly compute such adjustment or readjustment in accordance with the terms of
this  Warrant and prepare a  certificate,  signed by the  Chairman of the Board,
President  or one of the  Vice  Presidents  of  the  Company,  and by the  Chief
Financial  Officer,  the  Treasurer or one of the  Assistant  Treasurers  of the
Company, setting forth such adjustment or readjustment and showing in reasonable
detail  the  method  of  calculation  thereof  and the  facts  upon  which  such
adjustment  or  readjustment  is  based,   including  a  statement  of  (a)  the
consideration  received or to be  received  by the  Company  for any  Additional
Shares of Common  Stock  issued or sold or deemed to have been  issued,  (b) the
number of shares of Common Stock  outstanding or deemed to be  outstanding,  and
(c) the Purchase Price in effect  immediately prior to such issue or sale and as
adjusted  and  readjusted  (if  required by Section 3) on account  thereof.  The
Company shall forthwith mail a copy of each such certificate to each holder of a
Warrant.  The  Company  shall also keep copies of all such  certificates  at its
principal office and shall cause the same to be available for inspection at such
office  during  normal  business  hours  by  any  holder  of a  Warrant  or  any
prospective purchaser of a Warrant designated by the holder thereof. The Company
shall,  upon the  reasonable  request in writing of the Holder (at the Company's
expense),  retain independent public accountants of recognized national standing
selected  by the  Board of  Directors  of the  Company  to make any  computation
required in connection with  adjustments  under this Warrant,  and a certificate
signed by such firm shall be  conclusive  evidence  of the  correctness  of such
adjustment, which shall be binding on the Holder and the Company.

                  8.       Notices of Corporate Action.  In the event of:
                           ---------------------------

                  (a) any taking by the  Company  of a record of the  holders of
         any class of  securities  for the  purpose of  determining  the holders
         thereof who are entitled to receive any dividend or other distribution,
         or any right to subscribe for, purchase or otherwise acquire any shares
         of stock of any  class  or any  other  securities  or  property,  or to
         receive any other right, or

                  (b)  any   capital   reorganization   of  the   Company,   any
         reclassification  or  recapitalization  of  the  capital  stock  of the
         Company,  any  consolidation  or merger  involving  the Company and any
         other Person,  any  transaction or series of transactions in which more
         than 50% of the voting  securities  of the Company are  transferred  to
         another Person,  or any transfer,  sale or other  disposition of all or
         substantially all the assets of the Company to any other Person, or

                                       14
<PAGE>

                  (c)  any voluntary or involuntary dissolution,  liquidation or
         winding-up of the Company,

the Company shall mail to each holder of a Warrant a notice  specifying  (i) the
date or expected date on which any such record is to be taken for the purpose of
such  dividend,  distribution  or right,  and the amount and  character  of such
dividend, distribution or right, and (ii) the date or expected date on which any
such reorganization, reclassification,  recapitalization, consolidation, merger,
transfer, sale, 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
record of Common Stock (or Other Securities) shall be entitled to exchange their
shares  of  Common  Stock  (or Other  Securities)  for the  securities  or other
property    deliverable    upon    such    reorganization,     reclassification,
recapitalization,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up.  Such  notice  shall be  mailed  at least 20 days  prior to the date
therein  specified but in no event earlier than the public  announcement of such
proposed transaction or event.

                  9. Registration of Common Stock. If any shares of Common Stock
required  to be reserved  for  purposes  of  exercise  of this  Warrant  require
registration with or approval of any governmental authority under any federal or
state law (other than the Securities  Act) before such shares may be issued upon
exercise,  the Company shall, at its expense and as  expeditiously  as possible,
use its best efforts to cause such shares to be duly registered or approved,  as
the case may be.  At any such time as  Common  Stock is  listed on any  national
securities  exchange or trade market, the Company shall, at its expense,  obtain
promptly and  maintain  the approval for listing on each such  exchange or trade
market,  upon official  notice of issuance,  the shares of Common Stock issuable
upon exercise of the then outstanding  Warrants and maintain the listing of such
shares after their  issuance;  and the Company  shall also list on such national
securities  exchange or trade market,  shall register under the Exchange Act and
shall  maintain  such  listing  of,  any Other  Securities  that at any time are
issuable upon exercise of the Warrants,  if and at the time that any  securities
of the same class shall be listed on such national  securities exchange or trade
market by the Company.

                  10.  Reservation of Stock, etc. The Company shall at all times
reserve and keep  available,  solely for issuance and delivery  upon exercise of
the Warrants,  the number of shares of Common Stock (or Other  Securities)  from
time to time issuable upon exercise of all Warrants at the time  outstanding and
otherwise in accordance with the terms of the Purchase Agreement.  All shares of
Common Stock (or Other Securities)  issuable upon exercise of any Warrants shall
be duly authorized and, when issued upon such exercise,  shall be validly issued
and, in the case of shares,  fully paid and  nonassessable  with no liability on
the part of the holders  thereof,  and, in the case of all securities,  shall be
free from all taxes, liens, security interests, encumbrances,  preemptive rights
and charges.  The transfer agent for the Common Stock,  which may be the Company
(the "Transfer  Agent"),  and every subsequent  Transfer Agent for any shares of
the Company's  capital  stock  issuable upon the exercise of any of the purchase
rights  represented  by this  Warrant,  are hereby  irrevocably  authorized  and
directed  at all times  until the  Expiration  Date to  reserve  such  number of
authorized  and unissued  shares as shall be  requisite  for such  purpose.  The
Company  shall keep copies of this Warrant on file with the  Transfer  Agent for
the Common Stock and with every subsequent  Transfer Agent for any shares of the
Company's  capital  stock  issuable  upon the exercise of the rights of purchase
represented  by this Warrant.  The Company shall supply such Transfer Agent with
duly executed  stock  certificates  for such purpose.  All Warrant  Certificates
surrendered upon the exercise of the rights thereby evidenced shall be canceled,

                                       15
<PAGE>

and such canceled Warrants shall constitute sufficient evidence of the number of
shares of stock  which have been  issued  upon the  exercise  of such  Warrants.
Subsequent  to the  Expiration  Date,  no shares of stock  need be  reserved  in
respect of any unexercised Warrant.

                  11.      Registration and Transfer of Warrants, etc.

                  11.1.  Warrant Register;  Ownership of Warrants.  Each Warrant
issued by the Company  shall be numbered  and shall be  registered  in a warrant
register (the "Warrant Register") as it is issued and transferred, which Warrant
Register  shall be maintained by the Company at its principal  office or, at the
Company's  election and expense,  by a Warrant Agent or the  Company's  transfer
agent.  The  Company  shall be entitled  to treat the  registered  Holder of any
Warrant on the Warrant  Register as the owner in fact  thereof for all  purposes
and shall not be bound to recognize  any equitable or other claim to or interest
in such  Warrant on the part of any other  Person,  and shall not be affected by
any notice to the  contrary,  except  that,  if and when any Warrant is properly
assigned in blank,  the Company  may (but shall not be  obligated  to) treat the
bearer  thereof as the owner of such  Warrant for all  purposes.  A Warrant,  if
properly assigned,  may be exercised by a new holder without a new Warrant first
having been issued.

                  11.2.  Transfer of Warrants.  If applicable,  this Warrant and
all rights hereunder are transferable in whole or in part, without charge to the
Holder hereof (except for any transfer taxes payable with respect thereto), upon
surrender of this Warrant with a properly  executed Form of Assignment  attached
hereto as Exhibit B at the principal office of the Company (or such other office
or agency of the Company as it may in writing designate to the Holder). Upon any
partial  transfer,  the Company  shall at its  expense  issue and deliver to the
Holder a new  Warrant of like tenor,  in the name of the Holder,  which shall be
exercisable  for such  number of shares of Common  Stock  with  respect to which
rights under this Warrant were not so  transferred  and to the  transferee a new
Warrant of like tenor, in the name of the transferee, which shall be exercisable
for such number of shares of Common  Stock with  respect to which  rights  under
this Warrant were so transferred.

                  11.3.  Replacement  of Warrants.  On receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft,  destruction
or  mutilation  of this  Warrant  and,  in the case of any such  loss,  theft or
destruction of this Warrant,  on delivery of an indemnity  agreement  reasonably
satisfactory  in form and  amount  to the  Company  or,  in the case of any such
mutilation,  on surrender of such Warrant to the Company at its principal office
and cancellation  thereof, the Company at its expense shall execute and deliver,
in lieu thereof, a new Warrant of like tenor.

                  11.4.  Adjustments  To  Purchase  Price and  Number of Shares.
Notwithstanding any adjustment in the Purchase Price or in the number or kind of
shares of Common Stock  purchasable  upon exercise of this Warrant,  any Warrant
theretofore  or  thereafter  issued may  continue to express the same number and
kind of shares of Common  Stock as are  stated  in this  Warrant,  as  initially
issued.

                                       16
<PAGE>

                  11.5.   Fractional  Shares.   Notwithstanding  any  adjustment
pursuant  to Section 3 in the number of shares of Common  Stock  covered by this
Warrant  or any  other  provision  of this  Warrant,  the  Company  shall not be
required  to issue  fractions  of shares  upon  exercise  of this  Warrant or to
distribute  certificates which evidence fractional shares. In lieu of fractional
shares, the Company shall make payment to the Holder, at the time of exercise of
this  Warrant as herein  provided,  in an amount in cash equal to such  fraction
multiplied by the Current Market Price of a share of Common Stock on the date of
Warrant exercise.

                  12. Remedies;  Specific  Performance.  The Company  stipulates
that there would be no adequate  remedy at law to the Holder of this  Warrant in
the event of any default or threatened default by the Company in the performance
of or  compliance  with any of the terms of this  Warrant and  accordingly,  the
Company  agrees that, in addition to any other remedy to which the Holder may be
entitled  at law or in equity,  the Holder  shall be  entitled to seek to compel
specific  performance  of the  obligations  of the Company  under this  Warrant,
without the posting of any bond, in accordance  with the terms and conditions of
this  Warrant  in any court of the  United  States or any State  thereof  having
jurisdiction,  and if any action  should be brought in equity to enforce  any of
the  provisions  of this  Warrant,  the Company shall not raise the defense that
there is an adequate remedy at law. Except as otherwise provided by law, a delay
or omission by the Holder hereof in exercising any right or remedy accruing upon
any such breach  shall not impair the right or remedy or  constitute a waiver of
or  acquiescence  in any such breach.  No remedy shall be exclusive of any other
remedy. All available remedies shall be cumulative.

                  13. No Rights or Liabilities as Shareholder. Nothing contained
in this  Warrant  shall be construed as  conferring  upon the Holder  hereof any
rights as a  stockholder  of the Company or as imposing  any  obligation  on the
Holder to purchase any  securities or as imposing any  liabilities on the Holder
as a stockholder  of the Company,  whether such  obligation or  liabilities  are
asserted by the Company or by creditors of the Company.

                  14.  Notices.   Any  notices,   consents,   waivers  or  other
communications  required or permitted to be given  hereunder  must be in writing
and will be deemed to have  been  delivered  (i) upon  receipt,  when  delivered
personally; (ii) upon receipt, when sent by facsimile, provided a copy is mailed
by U.S.  certified mail,  return receipt  requested;  (iii) three (3) days after
being sent by U.S. certified mail, return receipt requested, or (iv) one (1) day
after deposit with a nationally  recognized  overnight delivery service, in each
case  properly  addressed to the party to receive the same.  The  addresses  and
facsimile numbers for such communications shall be:

                                       17
<PAGE>

                  If to the Company:

                           Capita Research Group, Inc.
                           591 Skippack Pike

                           Suite 300
                          Blue Bell, Pennsylvania 19422
                           Telephone:     215-619-7777
                           Facsimile:     215-619-0775
                           Attention:  Chief Financial Officer

                  With a copy to:

                           Torys
                           237 Park Avenue
                            New York, New York 10017
                           Telephone:     212-880-6000
                           Facsimile:     212-682-0200
                           Attention:     Andrew J. Beck, Esq.

                  If to a Holder,  to its  address and  facsimile  number on the
register  maintained  by the  Company.  Each party shall  provide five (5) days'
prior  written  notice to the other party of any change in address or  facsimile
number.  Notwithstanding  the  foregoing,  the exercise of any Warrant  shall be
effective in the manner provided in Section 2.

                  15.  Amendments.  This  Warrant and any term hereof may not be
amended,  modified,  supplemented  or  terminated,  and  waivers or  consents to
departures  from the  provisions  hereof  may not be given,  except  by  written
instrument  duly  executed  by the  party  against  which  enforcement  of  such
amendment,  modification,  supplement,  termination  or consent to  departure is
sought.

                  16.  Descriptive  Headings,  Etc. The headings in this Warrant
are for  convenience of reference  only and shall not limit or otherwise  affect
the  meaning  of terms  contained  herein.  Unless the  context of this  Warrant
otherwise  requires:  (1) words of any gender  shall be deemed to  include  each
other  gender;  (2) words using the singular or plural number shall also include
the plural or singular number,  respectively;  (3) the words "hereof",  "herein"
and  "hereunder"  and words of similar  import when used in this  Warrant  shall
refer to this  Warrant as a whole and not to any  particular  provision  of this
Warrant, and Section and paragraph references are to the Sections and paragraphs
of this Warrant unless otherwise  specified;  (4) the word "including" and words
of similar  import  when used in this  Warrant  shall mean  "including,  without
limitation,"  unless  otherwise  specified;  (5) "or" is not exclusive;  and (6)
provisions apply to successive events and transactions.

                  17. GOVERNING  LAW.  This  Warrant  shall be governed by, and
construed in accordance  with, the laws of the State of New York (without giving
effect to the conflict of laws principles thereof).

                  18. Judicial Proceedings. Any legal action, suit or proceeding
brought  against the Company  with respect to this Warrant may be brought in any
federal court of the Southern District of New York or any state court located in
New York  County,  State of New York,  and by  execution  and  delivery  of this
Warrant, the Company hereby irrevocably and unconditionally waives any claim (by
way of motion,  as a defense or  otherwise)  of improper  venue,  that it is not
subject  personally to the  jurisdiction of such court,  that such courts are an
inconvenient  forum  or that  this  Warrant  or the  subject  matter  may not be
enforced in or by such court. The Company hereby irrevocably and unconditionally

                                       18
<PAGE>

consents  to the service of process of any of the  aforementioned  courts in any
such action,  suit or proceeding by the mailing of copies  thereof by registered
or certified mail, postage prepaid,  at its address set forth or provided for in
Section 14, such service to become effective 10 days after such mailing. Nothing
herein  contained  shall be  deemed  to  affect  the right of any party to serve
process  in any  manner  permitted  by  law or  commence  legal  proceedings  or
otherwise  proceed against any other party in any other  jurisdiction to enforce
judgments  obtained in any action,  suit or proceeding  brought pursuant to this
Section.  The Company irrevocably  submits to the exclusive  jurisdiction of the
aforementioned courts in such action, suit or proceeding.

                  19. Registration Rights Agreement.  The shares of Common Stock
(and  Other  Securities)  issuable  upon  exercise  of  this  Warrant  (or  upon
conversion  of any  shares of Common  Stock  issued  upon such  exercise)  shall
constitute  Registrable  Securities (as such term is defined in the Registration
Rights  Agreement).  Each holder of this Warrant shall be entitled to all of the
benefits  afforded  to a holder  of any such  Registrable  Securities  under the
Registration  Rights  Agreement  and  such  holder,  by its  acceptance  of this
Warrant,  agrees to be bound by and to comply with the terms and  conditions  of
the Registration Rights Agreement  applicable to such holder as a holder of such
Registrable Securities.

                                    CAPITA RESEARCH GROUP, INC.

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

                                         Name:  David B. Hunter
                                         Title: President

                                       19

                                                   EXHIBIT A to
                                                   Common Stock Purchase Warrant
                                                   -----------------------------

                                    [FORM OF]

                           ELECTION TO PURCHASE SHARES

                         AND TRANSFER AGENT INSTRUCTIONS

                  The  undersigned  hereby  irrevocably  elects to exercise  the
Warrant to  purchase  ____  shares of Common  Stock,  par value  $.001 per share
("Common  Stock"),  of CAPITA  RESEARCH  GROUP,  INC. (the "Company") and hereby
makes payment of $________ in  consideration  therefor.  The undersigned  hereby
requests that certificates for such shares be issued and delivered as follows:

ISSUE TO:
--------------------------------------------------------------------------------
                                     (NAME)
--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)
--------------------------------------------------------------------------------
                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:
           ---------------------------------------------------------------------
                                     (NAME)
--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

                  If the number of shares of Common  Stock  purchased  hereby is
less than the  number of shares of Common  Stock  covered  by the  Warrant,  the
undersigned  requests  that a new Warrant  representing  the number of shares of
Common Stock not so purchased be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                             (NAME OF HOLDER)
--------------------------------------------------------------------------------
                                       (ADDRESS, INCLUDING ZIP CODE)
--------------------------------------------------------------------------------
DELIVER TO:
                                             (NAME OF HOLDER)
--------------------------------------------------------------------------------
                                       (ADDRESS, INCLUDING ZIP CODE)

Dated: _____________________

                                     -----------------------
                                     [date]

                                       20
<PAGE>

         __________________,  as  transfer  agent and  registrar  of the  Common
Stock, is hereby  authorized and directed to issue the above number of shares of
Common Stock in the name of the above referenced entity or person and to deliver
the certificates representing such shares using an overnight delivery service.

                                                     CAPITA RESEARCH GROUP, INC.

                         By: ___________________________

                                       21

                                                                   EXHIBIT B to
                                                  Common Stock Purchase Warrant
                                                  -----------------------------

                              [FORM OF] ASSIGNMENT

                  FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers unto the Assignee named below all of the rights of the  undersigned to
purchase  Common  Stock,  par value $.001 per share  ("Common  Stock") of CAPITA
RESEARCH GROUP, INC.  represented by the Warrant,  with respect to the number of
shares of Common Stock set forth below:

Name of Assignee                            Address              No. of Shares
----------------                            -------              -------------

and does hereby irrevocably  constitute and appoint ________ as Attorney to make
such transfer on the books of CAPITA  RESEARCH GROUP,  INC.  maintained for that
purpose, with full power of substitution in the premises.

Dated: ____________________

                                    ----------------------------
                                     [date]

                                       22THIS WARRANT AND ANY SECURITIES  ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES
LAW OF ANY  STATE  OF THE  UNITED  STATES  AND MAY NOT BE SOLD,  TRANSFERRED  OR
OTHERWISE  DISPOSED OF EXCEPT  PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION  TO THE  REGISTRATION  REQUIREMENTS  OF SUCH ACT AND SUCH  LAWS.  THIS
WARRANT AND SUCH SECURITIES MAY NOT BE SOLD,  TRANSFERRED OR OTHERWISE  DISPOSED
OF EXCEPT IN COMPLIANCE  WITH THE  CONDITIONS  SPECIFIED IN THIS WARRANT AND THE
SECURITIES  PURCHASE AGREEMENT DATED AS OF JANUARY [ ], 2000 BY AND AMONG CAPITA
RESEARCH GROUP, INC. AND [ ].

                                                     CAPITA RESEARCH GROUP, INC.

                         B COMMON STOCK PURCHASE WARRANT

No. W-B[ ]                 JANUARY [   ], 2000

                           Warrant to Purchase [          ]
                           Shares of Common Stock par value $.001 per share

                  CAPITA  RESEARCH  GROUP,   INC.,  a  Nevada  corporation  (the
"Company"),  for value  received,  hereby  certifies  that [NAME] or  registered
assigns  (the  "Holder"),  is  entitled  to  purchase  from the Company [ ] duly
authorized, validly issued, fully paid and nonassessable shares of Common Stock,
par value $.001 per share,  of the Company (the "Common  Stock"),  at a purchase
price  equal to $1.00 per share,  at any time or from time to time prior to 5:00
P.M.,  New York City  time,  on  January 1, 2005 (the  "Expiration  Date"),  all
subject  to the  terms,  conditions  and  adjustments  set  forth  below in this
Warrant.

                  This  Warrant is one of the B Common Stock  Purchase  Warrants
(collectively,  the "Warrants", such term to include any such warrants issued in
substitution therefor) originally issued pursuant to the terms of the Securities
Purchase Agreement,  dated as of January [ ], 2000, by and among the Company and
the "Buyers"  signatory  thereto (the "Purchase  Agreement").  Capitalized terms
used herein and not otherwise  defined  herein shall have the meanings  assigned
such terms in the Purchase Agreement.

                                        1
<PAGE>

                  After the Closing  Date the Company is to register  the Common
Stock  issuable  pursuant  to this  Warrant  with the  Securities  and  Exchange
Commission  pursuant to the terms of the  Registration  Rights  Agreement  dated
January [ ], 2000.

                  1.       Definitions.  As  used  herein,  unless  the  context
otherwise requires, the following terms shall have the meanings indicated:

                  "A Common Stock Purchase  Warrants"  shall mean such warrants,
substantially  in the form  hereof,  to  acquire  shares of Common  Stock of the
Company at a purchase  price  equal to $.50 per share,  issued  pursuant  to the
terms of the Purchase Agreement.

                  "Additional  Shares of Common  Stock"  shall  mean all  shares
(including  treasury  shares) of Common  Stock  issued or sold (or,  pursuant to
Section 3.3 or 3.4,  deemed to be issued) by the Company  after the date hereof,
whether or not subsequently reacquired or retired by the Company, other than

                  (a) (i) shares of Common Stock issued upon the exercise of the
         Warrants, (ii) shares of Common Stock issued upon the exercise of the A
         Common Stock Purchase Warrants,  (iii) shares of Common Stock issued at
         the  Closing  under the  Purchase  Agreement  and (iv)  such  number of
         additional  shares  of Common  Stock as may  become  issuable  upon the
         exercise of the Warrants by reason of adjustments  required pursuant to
         the anti-dilution  provisions  applicable to such Warrants as in effect
         on the date hereof; and

                  (b)      shares of Common  Stock  issued  pursuant to Approved
         Stock Plans; and

                  (c)      shares issued upon exercise of options,  warrants and
         other convertible securities outstanding as of the date hereof; and

                  (d)  shares  issued  to bona  fide  suppliers  or  vendors  in
         consideration  for services or supplies rendered to the Company or to a
         bank or other  financial  institution  as an inducement to enter into a
         financing  arrangement  with the Company in an amount not to exceed 10%
         of the outstanding capital stock of the Company.

                  "Approved  Stock  Plan"  shall  mean  any  contract,  plan  or
agreement  which has been or shall be approved by the Board of  Directors of the
Company,  pursuant  to which  the  Company's  securities  may be  issued  to any
employee, officer, director, consultant or other service provider of the Company
in an  aggregate  amount that does not exceed  110% of the number of  securities
issuable pursuant to any currently existing Approved Stock Plan.

                  "Business  Day" shall mean any day other than a Saturday  or a
Sunday or a day on which commercial banking institutions in the City of New York
are  authorized by law to be closed.  Any reference to "days"  (unless  Business
Days are specified) shall mean calendar days.

                                        2
<PAGE>

                  "Buy In Actual Damages" shall have the meaning  assigned to it
in Section 2.6 of this Warrant.

                  "Closing  Bid  Prices"  shall mean for any  security as of any
date,  the  closing  bid  price of such  security  on the  principal  securities
exchange or trade market where such  security is listed or trades as reported by
Bloomberg,  L.P. ("Bloomberg"),  or if the foregoing does not apply, the closing
bid price of such  security  in the  over-the-counter  market on the  electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price is reported for such security by Bloomberg,  the average of the bid prices
of any market  makers for such  security as reported in the "pink sheets" by the
National  Quotation  Bureau,  Inc. If the Closing Bid Price cannot be calculated
for such  security on such date,  as set forth  above,  the Closing Bid Price of
such  security  shall be the fair market value as determined in good faith by an
investment banking firm selected jointly by the Company and the Holder, with the
fees and expenses of such determination borne solely by the Company.

                  "Commission" shall mean the Securities and Exchange Commission
or any successor agency having jurisdiction to enforce the Securities Act.

                  "Common  Stock"  shall have the meaning  assigned to it in the
introduction  to this  Warrant,  such term to include  any stock into which such
Common  Stock  shall  have  been  changed  or  any  stock   resulting  from  any
reclassification  of such  Common  Stock,  and all  other  stock of any class or
classes (however designated) of the Company the holders of which have the right,
without  limitation as to amount,  either to all or to a share of the balance of
current  dividends and liquidating  dividends after the payment of dividends and
distributions on any shares entitled to preference.

                  "Company"  shall  have  the  meaning  assigned  to it  in  the
introduction  to this  Warrant,  such term to include any  corporation  or other
entity which shall succeed to or assume the obligations of the Company hereunder
in compliance with Section 4.

                  "Convertible   Securities"   shall  mean  any   evidences   of
indebtedness,  shares of stock  (other  than Common  Stock) or other  securities
directly or indirectly convertible into or exchangeable for Additional Shares of
Common Stock.

                  "Current  Market  Price"  shall  mean,  on any date  specified
herein,  the average of the daily Closing Bid Prices  during the 10  consecutive
trading days commencing 15 trading days before such date, except that, if on any
such date the shares of Common  Stock are not listed or admitted  for trading on
any national securities exchange or quoted in the  over-the-counter  market, the
Current Market Price shall be the "Fair Value" on such date.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended from time to time, and the rules and regulations  thereunder,  or any
successor statute.

                  "Expiration Date" shall have the meaning assigned to it in the
introduction to this Warrant.

                                        3
<PAGE>

                  "Fair Value" shall mean, on any date  specified  herein (i) in
the case of cash,  the  dollar  amount  thereof,  (ii) in the case of a security
admitted  for  trading  on any  national  securities  exchange  or quoted in the
over-the-counter  market, the Current Market Price, and (iii) in all other cases
as determined in good faith jointly by the Board of Directors of the Company and
the  Holder;  provided,  however,  that if such  parties  are  unable  to  reach
agreement within a reasonable period of time, the Fair Value shall be determined
in good faith by an independent  investment banking firm selected jointly by the
Company and the Holder or, if that selection  cannot be made within ten days, by
an  independent  investment  banking firm  selected by the American  Arbitration
Association in accordance with its rules, and provided further, that the Company
shall  pay all of the  fees  and  expenses  of any  third  parties  incurred  in
connection with determining the Fair Value.

                  "Options"  shall  mean any  rights,  options  or  warrants  to
subscribe for,  purchase or otherwise acquire either Additional Shares of Common
Stock or Convertible Securities.

                  "Other  Securities"  shall mean any stock  (other  than Common
Stock) and other  securities  of the Company or any other Person  (corporate  or
otherwise)  which the  holders of the  Warrants at any time shall be entitled to
receive, or shall have received,  upon the exercise of the Warrants,  in lieu of
or in addition to Common Stock,  or which at any time shall be issuable or shall
have been  issued in exchange  for or in  replacement  of Common  Stock or Other
Securities pursuant to Section 4 or otherwise.

                  "Person"  shall  mean  any  individual,   firm,   partnership,
corporation,  trust, joint venture,  association,  joint stock company,  limited
liability   company,   unincorporated   organization  or  any  other  entity  or
organization, including a government or agency or political subdivision thereof,
and shall include any successor (by merger or otherwise) of such entity.

                  "Purchase  Agreement" shall have the meaning assigned to it in
the introduction to this Warrant.

                  "Purchase  Price" shall mean the amount per share indicated in
the  introductory   paragraph  to  this  Warrant,   subject  to  adjustment  and
readjustment  from time to time as provided in Section 3, and, as so adjusted or
readjusted,  shall remain in effect until a further  adjustment or  readjustment
thereof is required by Section 3.

                  "Registration  Rights  Agreement"  shall mean the Registration
Rights  Agreement  dated as of January [ ], 2000,  substantially  in the form of
Exhibit C to the Purchase Agreement.

                  "Rights"  shall  have the  meaning  assigned  to it in Section
3.10.

                  "Securities  Act" shall mean the  Securities  Act of 1933,  as
amended  from time to time,  and the rules and  regulations  thereunder,  or any
successor statute.

                                        4
<PAGE>

                  "Warrants"  shall  have  the  meaning  assigned  to it in  the
introduction to this Warrant.

                  2.       Exercise of Warrant.
                           -------------------

                  2.1. Manner of Exercise;  Payment of the Purchase  Price.  (a)
This Warrant may be exercised by the Holder, in whole or in part, at any time or
from time to time prior to the Expiration  Date, by  surrendering to the Company
at its  principal  office (or such other  office or agency of the Company as the
Company may designate in a written notice to the Holder) this Warrant,  together
with the form of Election to Purchase  Shares attached hereto as Exhibit A (or a
reasonable  facsimile  thereof) duly executed by the Holder and  accompanied  by
payment of the  Purchase  Price as  described  below for the number of shares of
Common Stock specified in such form.

                  (b) Payment of the Purchase Price may be made in United States
currency by cash or delivery of a certified  check or bank draft  payable to the
order of the Company or by wire transfer to the account of the Company.

                  2.2.  When Exercise  Effective.  Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business
on the Business Day on which this Warrant  shall have been  surrendered  to, and
the  Purchase  Price  shall have been  received  by, the  Company as provided in
Section  2.1,  and at such time the Person or Persons in whose name or names any
certificate  or  certificates  for shares of Common Stock (or Other  Securities)
shall be issuable  upon such exercise as provided in Section 2.3 shall be deemed
to have become the holder or holders of record thereof for all purposes.

                  2.3. Delivery of Stock Certificates,  etc.; Charges, Taxes and
Expenses.  Subject to Section 2.5 (a) As soon as practicable after each exercise
of this Warrant, in whole or in part, and in any event within five Business Days
thereafter, the Company shall cause to be issued in such denominations as may be
requested  by Holder in the  Election  to  Purchase  Shares,  in the name of and
delivered to the Holder or,  subject the Purchase  Agreement,  as the Holder may
direct,

                  (i) a certificate  or  certificates,  or, if then  permissible
         under the  Securities  Act, at the Holder's  request to  electronically
         issue such shares (e.g., through DWAC or DTC), for the number of shares
         of Common  Stock (or Other  Securities)  to which the  Holder  shall be
         entitled upon such exercise plus, in lieu of issuance of any fractional
         share to which the Holder would otherwise be entitled,  if any, a check
         for the amount of cash  equal to the same  fraction  multiplied  by the
         Current  Market  Price  per  share  on the  date of  Warrant  exercise,
         provided,  however,  that in the event sufficient funds are not legally
         available  for the  payment  of such  amount,  the  number of shares of
         Common Stock which such  certificate(s)  represents shall be rounded up
         to the nearest whole number, and

                                        5
<PAGE>

                  (ii) in case such  exercise is for less than all of the shares
         of Common  Stock  purchasable  under  this  Warrant,  a new  Warrant or
         Warrants of like tenor,  for the balance of the shares of Common  Stock
         purchasable hereunder.

                  (b) Issuance of  certificates  for shares of Common Stock upon
the exercise of this Warrant  shall be made without  charge to the Holder hereof
for any issue or transfer  tax or other  incidental  expense,  in respect of the
issuance of such  certificates,  all of which such taxes and  expenses  shall be
paid by the Company,  except that any tax or expense  payable as a result of the
issuance of such  certificates  in a name other than that of the Holder shall be
paid by the Holder.

                  2.4.  Company to Reaffirm  Obligations.  The Company shall, at
the time of each  exercise  of this  Warrant,  upon the  request  of the  Holder
hereof,  acknowledge  in writing  its  continuing  obligation  to afford to such
Holder all rights to which such Holder shall  continue to be entitled after such
exercise in  accordance  with the terms of this  Warrant,  provided  that if the
Holder of this Warrant shall fail to make any such  request,  such failure shall
not affect the continuing obligation of the Company to afford such rights to the
Holder.

                  2.5.  Exercise  Disputes.  In the  case  of any  dispute  with
respect to the number of shares to be issued upon exercise of this Warrant,  the
Company shall  promptly  issue such number of shares of Common Stock that is not
disputed and shall submit the disputed determinations or arithmetic calculations
to the  Holder via  facsimile  within  two (2)  Business  Days of receipt of the
Holder's  Election to Purchase Shares.  If the Holder and the Company are unable
to agree  as to the  determination  of such  number  of  shares  within  two (2)
Business Days of such disputed  determination  or arithmetic  calculation  being
submitted to the Holder, then the Company shall in accordance with this Section,
submit via  facsimile the disputed  determination  to an  independent  reputable
accounting firm of national  standing,  selected  jointly by the Company and the
Holder.   The  Company  shall  cause  such   accounting   firm  to  perform  the
determinations  or  calculations  and notify the  Company  and the Holder of the
results  within  forty-eight  (48) hours from the time it receives  the disputed
determinations or calculations.  Such accounting firm's  determination  shall be
binding upon all parties absent  manifest  error.  The Company shall then on the
next Business Day issue  certificate(s)  representing the appropriate  number of
shares of Common Stock in accordance with such accounting  firm's  determination
and this Section.  All fees and expenses of such  determination  and calculation
shall be borne by the Company.

                  2.6.  Failure to  Deliver  Common  Stock If, at any time,  the
Holder of this Warrant submits this Warrant,  an Election to Purchase Shares and
payment to the  Company of the  Purchase  Price for each of the shares of Common
Stock  specified in the Election to Purchase  Shares in accordance  with Section
2.1 above, and the Company, for any reason, fails to deliver, on or prior to the
last  possible date which the Company could have issued such Common Stock to the
Holder  without  violating  this Section 2, the number of shares of Common Stock
for which the Holder is  entitled  upon such  exercise,  the  Company  shall pay
damages to the Holder equal to the greater of (a) actual damages incurred by the
Holder as a result of the Holder's needing to "buy in" shares of Common Stock to

                                        6
<PAGE>

the extent necessary to satisfy its securities  delivery  requirements  ("Buy In
Actual  Damages")  and (b) if the  Company  fails to deliver  such  certificates
within five days after the last  possible  date on which the Company  could have
issued such Common Stock to the Holder without violating this Section 2, on each
date such  exercise  is not  timely  effected  in an  amount  equal to 1% of the
product of (i) the number of shares of Common  Stock not issued to the Holder on
a timely  basis and to which the Holder is  entitled  and (ii) the  Closing  Bid
Price of the Common Stock on the last possible date which the Company could have
issued such Common Stock to the Holder without violating this Section 2.

                  3.       Adjustment of Common Stock Issuable Upon Exercise.
                           -------------------------------------------------

                  3.1.     Adjustment of Number of Shares.
                           ------------------------------

                           Upon  each  adjustment  of the  Purchase  Price  as a
result of the calculations made in this Section 3, this Warrant shall thereafter
evidence the right to receive,  at the adjusted  Purchase Price,  that number of
shares of Common Stock  (calculated  to the nearest  one-hundredth)  obtained by
dividing  (i) the  product  of the  aggregate  number of shares  covered by this
Warrant  immediately  prior to such  adjustment and the Purchase Price in effect
immediately  prior to such adjustment of the Purchase Price by (ii) the Purchase
Price in effect immediately after such adjustment of the Purchase Price.

                  3.2.     Adjustment of Purchase Price.
                           ----------------------------

                  3.2.1.  Issuance of Additional Shares of Common Stock. In case
the Company at any time or from time to time after the date  hereof  shall issue
or sell Additional Shares of Common Stock (including Additional Shares of Common
Stock  deemed  to be  issued  pursuant  to  Section  3.3  or 3.4  but  excluding
Additional  Shares of Common Stock  purchasable upon exercise of Rights referred
to in Section 3.10), without consideration or for a consideration per share less
than  the fair  market  value  of such  additional  shares  of  Common  Stock as
determined  in good faith by the Board of  Directors of the Company as in effect
immediately prior to such issue or sale, then, and in each such case, subject to
Section 3.8, the Purchase Price shall be reduced,  concurrently  with such issue
or sale,  to a price  (calculated  to the nearest .001 of a cent)  determined by
multiplying such Purchase Price by a fraction

                  (a) the  numerator of which shall be the sum of (i) the number
         of shares of Common Stock  outstanding  immediately prior to such issue
         or sale and (ii) the number of shares of Common  Stock  which the gross
         consideration  received  by the  Company  for the total  number of such
         Additional  Shares of Common Stock so issued or sold would  purchase at
         such Current Market Price, and

                  (b) the  denominator of which shall be the number of shares of
         Common Stock outstanding immediately after such issue or sale, provided
         that, for the purposes of this Section 3.2.1, (x) immediately after any
         Additional Shares of Common Stock are deemed to have been issued

                                        7
<PAGE>

         pursuant to Section 3.3 or 3.4, such Additional  Shares shall be deemed
         to be  outstanding,  and (y) treasury  shares shall not be deemed to be
         outstanding.

                  3.2.2. Extraordinary Dividends and Distributions.  In case the
Company at any time or from time to time after the date  hereof  shall  declare,
order,  pay  or  make a  dividend  or  other  distribution  (including,  without
limitation, any distribution of other or additional stock or other securities or
property  or  Options  by  way  of  dividend  or   spin-off,   reclassification,
recapitalization or similar corporate  rearrangement) on the Common Stock (other
than a cash dividend payable out of earnings),  then, in each such case, subject
to Section 3.8, the Purchase Price in effect  immediately  prior to the close of
business on the record date fixed for the  determination of holders of any class
of  securities  entitled  to receive  such  dividend  or  distribution  shall be
reduced,  effective as of the close of business on such record date,  to a price
determined by multiplying such Purchase Price by a fraction

                  (x) the  numerator of which shall be the Current  Market Price
         in effect on such  record  date or, if the  Common  Stock  trades on an
         ex-dividend basis, on the date prior to the commencement of ex-dividend
         trading,   less  the  Fair  Value  of  such  dividend  or  distribution
         applicable to one share of Common Stock, and

                  (y)    the  denominator  of which shall be such Current Market
         Price.

                  3.3. Treatment of Options and Convertible Securities.  In case
the Company at any time or from time to time after the date hereof  shall issue,
sell,  grant or  assume,  or shall fix a record  date for the  determination  of
holders of any class of  securities  of the Company  entitled  to  receive,  any
Options or  Convertible  Securities  (whether or not the rights  thereunder  are
immediately  exercisable),  then,  and in each such case,  the maximum number of
Additional  Shares of Common  Stock  (as set  forth in the  instrument  relating
thereto,  without  regard to any provisions  contained  therein for a subsequent
adjustment of such number) issuable upon the exercise of such Options or, in the
case of Convertible  Securities and Options therefor, the conversion or exchange
of such  Convertible  Securities,  shall be  deemed to be  Additional  Shares of
Common Stock issued as of the time of such issue,  sale, grant or assumption or,
in case such a record date shall have been fixed, as of the close of business on
such record date (or, if the Common Stock trades on an ex-dividend basis, on the
date prior to the  commencement  of  ex-dividend  trading),  provided  that such
Additional Shares of Common Stock shall not be deemed to have been issued unless
(i) the  consideration  per share  (determined  pursuant to Section 3.5) of such
shares would be less than the fair market value of such shares as  determined in
good faith by the Board of  Directors of the Company as in effect on the date of
and immediately  prior to such issue,  sale,  grant or assumption or immediately
prior to the close of business  on such  record  date (or,  if the Common  Stock
trades  on an  ex-dividend  basis,  on the  date  prior to the  commencement  of
ex-dividend  trading),  as the case may be and (ii)  such  Additional  Shares of
Common Stock are not purchasable pursuant to Rights referred to in Section 3.10,
and provided, further, that

                                        8
<PAGE>

                  (a)  whether  or not the  Additional  Shares of  Common  Stock
         underlying  such  Options or  Convertible  Securities  are deemed to be
         issued, no further  adjustment of the Purchase Price shall be made upon
         the  subsequent  issue or sale of  Convertible  Securities or shares of
         Common  Stock upon the exercise of such  Options or the  conversion  or
         exchange of such Convertible Securities;

                  (b) if such Options or  Convertible  Securities by their terms
         provide, with the passage of time or otherwise, for any increase in the
         consideration  payable to the  Company,  or  decrease  in the number of
         Additional  Shares  of  Common  Stock  issuable,   upon  the  exercise,
         conversion or exchange  thereof (by change of rate or  otherwise),  the
         Purchase  Price  computed  upon  the  original  issue,  sale,  grant or
         assumption  thereof (or upon the occurrence of the record date, or date
         prior to the commencement of ex-dividend  trading,  as the case may be,
         with respect  thereto),  and any subsequent  adjustments based thereon,
         shall,  upon any such  increase  or  decrease  becoming  effective,  be
         recomputed to reflect such  increase or decrease  insofar as it affects
         such  Options,  or the  rights of  conversion  or  exchange  under such
         Convertible Securities, which are outstanding at such time;

                  (c) upon the  expiration  or  termination  (or purchase by the
         Company and cancellation or retirement) of any such Options which shall
         not have been  exercised or the  expiration of any rights of conversion
         or exchange under any such Convertible Securities which (or purchase by
         the Company and  cancellation  or  retirement  of any such  Convertible
         Securities  the rights of conversion or exchange under which) shall not
         have been  exercised,  the Purchase  Price  computed  upon the original
         issue, sale, grant or assumption thereof (or upon the occurrence of the
         record date, or date prior to the commencement of ex-dividend  trading,
         as  the  case  may  be,  with  respect  thereto),  and  any  subsequent
         adjustments  based  thereon,  shall,  upon  such  expiration  (or  such
         cancellation or retirement, as the case may be), be recomputed as if:

                           (i) in the  case  of  Options  for  Common  Stock  or
                  Convertible  Securities,  the only Additional Shares of Common
                  Stock  issued  or sold  were the  Additional  Shares of Common
                  Stock,  if any,  actually  issued or sold upon the exercise of
                  such Options or the conversion or exchange of such Convertible
                  Securities  and the  consideration  received  therefor was the
                  consideration  actually received by the Company for the issue,
                  sale, grant or assumption of all such Options,  whether or not
                  exercised,  plus the  consideration  actually  received by the
                  Company  upon such  exercise,  or for the issue or sale of all
                  such Convertible  Securities which were actually  converted or
                  exchanged, plus the additional consideration, if any, actually
                  received by the Company upon such conversion or exchange, and

                           (ii)  in  the  case  of   Options   for   Convertible
                  Securities,  only the Convertible Securities, if any, actually
                  issued or sold upon the  exercise of such  Options were issued
                  at the time of the issue or sale,  grant or assumption of such
                  Options, and the consideration received by the Company for the

                                        9
<PAGE>

                  Additional  Shares  of Common  Stock  deemed to have then been
                  issued was the consideration  actually received by the Company
                  for the issue,  sale, grant or assumption of all such Options,
                  whether or not  exercised,  plus the  consideration  deemed to
                  have been  received by the Company  (pursuant  to Section 3.5)
                  upon the  issue or sale of such  Convertible  Securities  with
                  respect to which such Options were actually exercised;

                  (d) no  readjustment  pursuant to subdivision (b) or (c) above
         shall have the effect of increasing  the Purchase Price by an amount in
         excess  of the  amount of the  adjustment  thereof  originally  made in
         respect of the issue,  sale,  grant or  assumption  of such  Options or
         Convertible Securities; and

                  (e) in the  case of any such  Options  which  expire  by their
         terms not more than 30 days  after  the date of issue,  sale,  grant or
         assumption  thereof,  no adjustment of the Purchase Price shall be made
         until the  expiration or exercise of all such Options,  whereupon  such
         adjustment  shall be made in the manner  provided  in  subdivision  (c)
         above.

                  3.4. Treatment of Stock Dividends,  Stock Splits, etc. In case
the Company at any time or from time to time after the date hereof shall declare
or pay any dividend on the Common Stock payable in Common Stock, or shall effect
a subdivision of the outstanding shares of Common Stock into a greater number of
shares of Common Stock (by  reclassification  or otherwise  than by payment of a
dividend in Common  Stock),  then, and in each such case,  Additional  Shares of
Common  Stock  shall be deemed to have been  issued  (a) in the case of any such
dividend,  immediately  after the close of  business  on the record date for the
determination  of holders of any class of  securities  entitled to receive  such
dividend,  or (b) in the case of any such subdivision,  at the close of business
on the day immediately prior to the day upon which such corporate action becomes
effective.

                  3.5.     Computation  of  Consideration.  For the  purposes of
         this Section 3,

                  (a)      the  consideration  for  the  issue  or  sale  of any
         Additional Shares of Common Stock shall, irrespective of the accounting
         treatment of such consideration,

                           (i) insofar as it  consists  of cash,  be computed at
                  the amount of cash received by the Company,  without deducting
                  any   expenses   paid  or  incurred  by  the  Company  or  any
                  commissions or  compensation  paid or concessions or discounts
                  allowed to underwriters,  dealers or others performing similar
                  services in connection with such issue or sale,

                           (ii)  insofar as it consists  of property  (including
                  securities)  other than cash,  be  computed  at the Fair Value
                  thereof at the time of such issue or sale, and

                                       10
<PAGE>

                           (iii) in case  Additional  Shares of Common Stock are
                  issued or sold  together  with other  stock or  securities  or
                  other assets of the Company for a  consideration  which covers
                  both,  be the  portion  of  such  consideration  so  received,
                  computed as provided in clauses (i) and (ii) above,  allocable
                  to such Additional  Shares of Common Stock, such allocation to
                  be  determined  in the same  manner  that  the  Fair  Value of
                  property  not  consisting  of  cash  or  securities  is  to be
                  determined  as  provided  in the  definition  of "Fair  Value"
                  herein;

                  (b)  Additional  Shares  of Common  Stock  deemed to have been
         issued  pursuant to Section  3.3,  relating to Options and  Convertible
         Securities, shall be deemed to have been issued for a consideration per
         share determined by dividing

                           (i) the total amount, if any, received and receivable
                  by the Company as consideration for the issue,  sale, grant or
                  assumption  of  the  Options  or  Convertible   Securities  in
                  question,  plus the  minimum  aggregate  amount of  additional
                  consideration  (as  set  forth  in  the  instruments  relating
                  thereto, without regard to any provision contained therein for
                  a  subsequent  adjustment  of such  consideration  to  protect
                  against  dilution) payable to the Company upon the exercise in
                  full of such  Options or the  conversion  or  exchange of such
                  Convertible   Securities  or,  in  the  case  of  Options  for
                  Convertible  Securities,  the  exercise  of such  Options  for
                  Convertible  Securities and the conversion or exchange of such
                  Convertible   Securities,   in  each   case   computing   such
                  consideration as provided in the foregoing subdivision (a),

                  by

                           (ii) the maximum number of shares of Common Stock (as
                  set forth in the instruments relating thereto,  without regard
                  to any provision contained therein for a subsequent adjustment
                  of such number to protect against dilution)  issuable upon the
                  exercise of such Options or the conversion or exchange of such
                  Convertible Securities; and

                  (c)  Additional  Shares  of Common  Stock  deemed to have been
                  issued pursuant to Section 3.4,  relating to stock  dividends,
                  stock splits, etc., shall be deemed to have been issued for no
                  consideration.

                  3.6.   Adjustments   for   Combinations,   etc.  In  case  the
outstanding  shares  of Common  Stock  shall be  combined  or  consolidated,  by
reclassification  or otherwise,  into a lesser number of shares of Common Stock,
the  Purchase  Price  in  effect   immediately  prior  to  such  combination  or
consolidation shall,  concurrently with the effectiveness of such combination or
consolidation, be proportionately increased.

                  3.7. Dilution in Case of Other  Securities.  In case any Other
Securities shall be issued or sold or shall become subject to issue or sale upon

                                       11
<PAGE>

the conversion or exchange of any stock (or Other Securities) of the Company (or
any issuer of Other  Securities or any other Person referred to in Section 4) or
to subscription, purchase or other acquisition pursuant to any Options issued or
granted by the Company (or any such other issuer or Person) for a  consideration
such as to dilute,  on a basis consistent with the standards  established in the
other provisions of this Section 3, the purchase rights granted by this Warrant,
then, and in each such case, the  computations,  adjustments  and  readjustments
provided for in this Section 3 with respect to the Purchase Price and the number
of shares  purchasable upon Warrant exercise shall be made as nearly as possible
in the  manner  so  provided  and  applied  to  determine  the  amount  of Other
Securities from time to time receivable upon the exercise of the Warrants, so as
to protect the holders of the Warrants against the effect of such dilution.

                  3.8. De Minimis  Adjustments.  If the amount of any adjustment
of the  Purchase  Price per share  required  pursuant to this Section 3 would be
less than $.01, such amount shall be carried forward and adjustment with respect
thereto made at the time of and together with any subsequent  adjustment  which,
together  with such amount and any other  amount or amounts so carried  forward,
shall  aggregate a change in the Purchase Price of at least $.01 per share.  All
calculations  under this Warrant  shall be made to the nearest .001 of a cent or
to the nearest one-hundredth of a share, as the case may be.

                  3.9. Abandoned Dividend or Distribution.  If 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 distribution (which results in an adjustment
to the Purchase  Price under the terms of this  Warrant) and shall,  thereafter,
and before such dividend or  distribution  is paid or delivered to  stockholders
entitled  thereto,  legally  abandon its plan to pay or deliver such dividend or
distribution,  then any  adjustment  made to the  Purchase  Price and  number of
shares of Common Stock purchasable upon Warrant exercise by reason of the taking
of such record shall be reversed, and any subsequent adjustments, based thereon,
shall be recomputed.

                  3.10. Shareholder Rights Plan.  Notwithstanding the foregoing,
in the event that the Company shall distribute  "poison pill" rights pursuant to
a "poison pill"  shareholder  rights plan (the "Rights"),  the Company shall, in
lieu of making any adjustment pursuant to Section 3.2.1 or Section 3.2.2 hereof,
make  proper  provision  so that each Holder who  exercises a Warrant  after the
record date for such  distribution  and prior to the expiration or redemption of
the Rights shall be entitled to receive upon such  exercise,  in addition to the
shares of Common Stock  issuable  upon such  exercise,  a number of Rights to be
determined as follows:  (i) if such exercise  occurs on or prior to the date for
the  distribution to the holders of Rights of separate  certificates  evidencing
such  Rights  (the  "Distribution  Date"),  the same number of Rights to which a
holder of a number of shares of Common  Stock  equal to the  number of shares of
Common Stock  issuable upon such exercise at the time of such exercise  would be
entitled in accordance  with the terms and  provisions of and  applicable to the
Rights;  and (ii) if such exercise occurs after the Distribution  Date, the same
number  of Rights to which a holder  of the  number  of  shares  into  which the
Warrant so exercised was exercisable  immediately prior to the Distribution Date
would have been entitled on the  Distribution  Date in accordance with the terms
and provisions of and applicable to the Rights,  and in each case subject to the
terms and conditions of the Rights.

                                       12
<PAGE>

                  4.       Consolidation, Merger, etc.
                           --------------------------

                  4.1.  Adjustments for Consolidation,  Merger,  Sale of Assets,
Reorganization,  etc.  In case the  Company  after  the date  hereof  (a)  shall
consolidate  with or merge into any other Person and shall not be the continuing
or surviving  corporation of such  consolidation or merger,  or (b) shall permit
any other Person to  consolidate  with or merge into the Company and the Company
shall be the  continuing  or  surviving  Person  but,  in  connection  with such
consolidation  or merger,  the Common Stock or Other Securities shall be changed
into or exchanged  for stock or other  securities of any other Person or cash or
any  other  property,  or (c) shall  transfer  all or  substantially  all of its
properties  or  assets  to any  other  Person,  or (d)  shall  effect a  capital
reorganization  or  reclassification  of the  Common  Stock or Other  Securities
(other than a capital reorganization or reclassification  resulting in the issue
of Additional  Shares of Common Stock for which adjustment in the Purchase Price
is  provided  in  Section  3.2.1 or 3.2.2),  then,  and in the case of each such
transaction,  proper  provision  shall be made so that,  upon the  basis and the
terms and in the manner  provided in this  Warrant,  the Holder of this Warrant,
upon the exercise hereof at any time after the  consummation of such transaction
shall be entitled to receive (at the aggregate  Purchase  Price in effect at the
time of such consummation for all Common Stock or Other Securities issuable upon
such exercise  immediately  prior to such  consummation),  in lieu of the Common
Stock  or  Other   Securities   issuable  upon  such  exercise   prior  to  such
consummation,  the amount of  securities,  cash or other  property to which such
Holder would actually have been entitled as a stockholder upon such consummation
if such Holder had exercised this Warrant immediately prior thereto,  subject to
adjustments  (subsequent to such  consummation) as nearly equivalent as possible
to the adjustments provided for in Sections 3 through 5.

                  4.2.  Assumption  of  Obligations.   Notwithstanding  anything
contained  in the Warrants or in the Purchase  Agreement  to the  contrary,  the
Company  shall not  effect any of the  transactions  described  in  clauses  (a)
through (d) of Section  4.1  unless,  prior to the  consummation  thereof,  each
Person  (other  than the  Company)  which may be  required to deliver any stock,
securities,  cash or  property  upon the  exercise  of this  Warrant as provided
herein  shall  assume,  by  written  instrument  delivered  to,  and  reasonably
satisfactory to, the Holder of this Warrant,  (a) the obligations of the Company
under this Warrant (and if the Company  shall survive the  consummation  of such
transaction,  such assumption shall be in addition to, and shall not release the
Company from, any continuing obligations of the Company under this Warrant), (b)
the obligations of the Company under the Purchase Agreement and the Registration
Rights  Agreement and (c) the obligation to deliver to the Holder such shares of
stock,  securities,  cash or  property  as,  in  accordance  with the  foregoing
provisions of this Section 4, the Holder may be entitled to receive.  Nothing in
this  Section 4 shall be deemed  to  authorize  the  Company  to enter  into any
transaction not otherwise permitted by the Purchase Agreement.

                                       13
<PAGE>

                  5. Other Dilutive Events.  In case any event shall occur as to
which  the  provisions  of  Section  3 or  Section  4  hereof  are not  strictly
applicable  or if strictly  applicable  would not fairly  protect  the  purchase
rights of the Holder in accordance  with the essential  intent and principles of
such  Sections,  then, in each such case,  the Board of Directors of the Company
shall make an adjustment in the  application of such  provisions,  in accordance
with such essential intent and principles, so as to preserve,  without dilution,
the purchase rights represented by this Warrant.

                  6. No  Dilution  or  Impairment.  The  Company  shall not,  by
amendment of its  certificate  of  incorporation  or through any  consolidation,
merger,  reorganization,  transfer  of  assets,  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 action as may be reasonably  necessary or  appropriate  in order to protect
the rights of the Holder of this Warrant against  dilution or other  impairment.
Without  limiting the  generality  of the  foregoing,  the Company (a) shall not
permit the par value of any shares of stock receivable upon the exercise of this
Warrant to exceed the amount payable therefor upon such exercise, (b) shall take
all such action as may be necessary or appropriate in order that the Company may
validly and legally  issue fully paid and  nonassessable  shares of stock,  free
from all taxes, liens, security interests,  encumbrances,  preemptive rights and
charges on the exercise of the Warrants from time to time outstanding, (c) shall
not take any action which results in any adjustment of the Purchase Price if the
total number of shares of Common Stock (or Other Securities)  issuable after the
action upon the exercise of all of the Warrants would exceed the total number of
shares of Common Stock (or Other  Securities)  then  authorized by the Company's
certificate  of  incorporation  and available for the purpose of issue upon such
exercise,  and (d)  shall  not issue  any  capital  stock of any class  which is
preferred as to dividends or as to the  distribution of assets upon voluntary or
involuntary  dissolution,  liquidation or  winding-up,  unless the rights of the
holders  thereof shall be limited to a fixed sum or percentage of par value or a
sum determined by reference to a formula based on a published  index of interest
rates,  an interest  rate  publicly  announced by a financial  institution  or a
similar indicator of interest rates in respect of participation in dividends and
to a fixed sum or percentage of par value in any such distribution of assets.

                  7.  Certificate  as  to  Adjustments.  In  each  case  of  any
adjustment or readjustment  in the shares of Common Stock (or Other  Securities)
issuable  upon the exercise of this  Warrant,  the Company at its expense  shall
promptly compute such adjustment or readjustment in accordance with the terms of
this  Warrant and prepare a  certificate,  signed by the  Chairman of the Board,
President  or one of the  Vice  Presidents  of  the  Company,  and by the  Chief
Financial  Officer,  the  Treasurer or one of the  Assistant  Treasurers  of the
Company, setting forth such adjustment or readjustment and showing in reasonable
detail  the  method  of  calculation  thereof  and the  facts  upon  which  such
adjustment  or  readjustment  is  based,   including  a  statement  of  (a)  the
consideration  received or to be  received  by the  Company  for any  Additional
Shares of Common  Stock  issued or sold or deemed to have been  issued,  (b) the
number of shares of Common Stock  outstanding or deemed to be  outstanding,  and
(c) the Purchase Price in effect immediately prior to such issue or sale and as

                                       14
<PAGE>

adjusted  and  readjusted  (if  required by Section 3) on account  thereof.  The
Company shall forthwith mail a copy of each such certificate to each holder of a
Warrant.  The  Company  shall also keep copies of all such  certificates  at its
principal office and shall cause the same to be available for inspection at such
office  during  normal  business  hours  by  any  holder  of a  Warrant  or  any
prospective purchaser of a Warrant designated by the holder thereof. The Company
shall,  upon the  reasonable  request in writing of the Holder (at the Company's
expense),  retain independent public accountants of recognized national standing
selected  by the  Board of  Directors  of the  Company  to make any  computation
required in connection with  adjustments  under this Warrant,  and a certificate
signed by such firm shall be  conclusive  evidence  of the  correctness  of such
adjustment, which shall be binding on the Holder and the Company.

                  8.       Notices of Corporate Action.  In the event of:
                           ---------------------------

                  (a) any taking by the  Company  of a record of the  holders of
         any class of  securities  for the  purpose of  determining  the holders
         thereof who are entitled to receive any dividend or other distribution,
         or any right to subscribe for, purchase or otherwise acquire any shares
         of stock of any  class  or any  other  securities  or  property,  or to
         receive any other right, or

                  (b)  any   capital   reorganization   of  the   Company,   any
         reclassification  or  recapitalization  of  the  capital  stock  of the
         Company,  any  consolidation  or merger  involving  the Company and any
         other Person,  any  transaction or series of transactions in which more
         than 50% of the voting  securities  of the Company are  transferred  to
         another Person,  or any transfer,  sale or other  disposition of all or
         substantially all the assets of the Company to any other Person, or

                  (c)  any voluntary or involuntary dissolution,  liquidation or
         winding-up of the Company,

the Company shall mail to each holder of a Warrant a notice  specifying  (i) the
date or expected date on which any such record is to be taken for the purpose of
such  dividend,  distribution  or right,  and the amount and  character  of such
dividend, distribution or right, and (ii) the date or expected date on which any
such reorganization, reclassification,  recapitalization, consolidation, merger,
transfer, sale, 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
record of Common Stock (or Other Securities) shall be entitled to exchange their
shares  of  Common  Stock  (or Other  Securities)  for the  securities  or other
property    deliverable    upon    such    reorganization,     reclassification,
recapitalization,  consolidation,  merger, transfer, dissolution, liquidation or
winding-up.  Such  notice  shall be  mailed  at least 20 days  prior to the date
therein  specified but in no event earlier than the public  announcement of such
proposed transaction or event.

                  9. Registration of Common Stock. If any shares of Common Stock
required  to be reserved  for  purposes  of  exercise  of this  Warrant  require
registration with or approval of any governmental authority under any federal or
state law (other than the Securities  Act) before such shares may be issued upon

                                       15
<PAGE>

exercise,  the Company shall, at its expense and as  expeditiously  as possible,
use its best efforts to cause such shares to be duly registered or approved,  as
the case may be.  At any such time as  Common  Stock is  listed on any  national
securities  exchange or trade market, the Company shall, at its expense,  obtain
promptly and  maintain  the approval for listing on each such  exchange or trade
market,  upon official  notice of issuance,  the shares of Common Stock issuable
upon exercise of the then outstanding  Warrants and maintain the listing of such
shares after their  issuance;  and the Company  shall also list on such national
securities  exchange or trade market,  shall register under the Exchange Act and
shall  maintain  such  listing  of,  any Other  Securities  that at any time are
issuable upon exercise of the Warrants,  if and at the time that any  securities
of the same class shall be listed on such national  securities exchange or trade
market by the Company.

                  10.  Reservation of Stock, etc. The Company shall at all times
reserve and keep  available,  solely for issuance and delivery  upon exercise of
the Warrants,  the number of shares of Common Stock (or Other  Securities)  from
time to time issuable upon exercise of all Warrants at the time  outstanding and
otherwise in accordance with the terms of the Purchase Agreement.  All shares of
Common Stock (or Other Securities)  issuable upon exercise of any Warrants shall
be duly authorized and, when issued upon such exercise,  shall be validly issued
and, in the case of shares,  fully paid and  nonassessable  with no liability on
the part of the holders  thereof,  and, in the case of all securities,  shall be
free from all taxes, liens, security interests, encumbrances,  preemptive rights
and charges.  The transfer agent for the Common Stock,  which may be the Company
(the "Transfer  Agent"),  and every subsequent  Transfer Agent for any shares of
the Company's  capital  stock  issuable upon the exercise of any of the purchase
rights  represented  by this  Warrant,  are hereby  irrevocably  authorized  and
directed  at all times  until the  Expiration  Date to  reserve  such  number of
authorized  and unissued  shares as shall be  requisite  for such  purpose.  The
Company  shall keep copies of this Warrant on file with the  Transfer  Agent for
the Common Stock and with every subsequent  Transfer Agent for any shares of the
Company's  capital  stock  issuable  upon the exercise of the rights of purchase
represented  by this Warrant.  The Company shall supply such Transfer Agent with
duly executed  stock  certificates  for such purpose.  All Warrant  Certificates
surrendered upon the exercise of the rights thereby evidenced shall be canceled,
and such canceled Warrants shall constitute sufficient evidence of the number of
shares of stock  which have been  issued  upon the  exercise  of such  Warrants.
Subsequent  to the  Expiration  Date,  no shares of stock  need be  reserved  in
respect of any unexercised Warrant.

                  11.      Registration and Transfer of Warrants, etc.
                           --------------------------------------------

                  11.1.  Warrant Register;  Ownership of Warrants.  Each Warrant
issued by the Company  shall be numbered  and shall be  registered  in a warrant
register (the "Warrant Register") as it is issued and transferred, which Warrant
Register  shall be maintained by the Company at its principal  office or, at the
Company's  election and expense,  by a Warrant Agent or the  Company's  transfer
agent.  The  Company  shall be entitled  to treat the  registered  Holder of any
Warrant on the Warrant  Register as the owner in fact  thereof for all  purposes
and shall not be bound to recognize any equitable or other claim to or interest

                                       16
<PAGE>

in such  Warrant on the part of any other  Person,  and shall not be affected by
any notice to the  contrary,  except  that,  if and when any Warrant is properly
assigned in blank,  the Company  may (but shall not be  obligated  to) treat the
bearer  thereof as the owner of such  Warrant for all  purposes.  A Warrant,  if
properly assigned,  may be exercised by a new holder without a new Warrant first
having been issued.

                  11.2.  Transfer of Warrants.  If applicable,  this Warrant and
all rights hereunder are transferable in whole or in part, without charge to the
Holder hereof (except for any transfer taxes payable with respect thereto), upon
surrender of this Warrant with a properly  executed Form of Assignment  attached
hereto as Exhibit B at the principal office of the Company (or such other office
or agency of the Company as it may in writing designate to the Holder). Upon any
partial  transfer,  the Company  shall at its  expense  issue and deliver to the
Holder a new  Warrant of like tenor,  in the name of the Holder,  which shall be
exercisable  for such  number of shares of Common  Stock  with  respect to which
rights under this Warrant were not so  transferred  and to the  transferee a new
Warrant of like tenor, in the name of the transferee, which shall be exercisable
for such number of shares of Common  Stock with  respect to which  rights  under
this Warrant were so transferred.

                  11.3.  Replacement  of Warrants.  On receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft,  destruction
or  mutilation  of this  Warrant  and,  in the case of any such  loss,  theft or
destruction of this Warrant,  on delivery of an indemnity  agreement  reasonably
satisfactory  in form and  amount  to the  Company  or,  in the case of any such
mutilation,  on surrender of such Warrant to the Company at its principal office
and cancellation  thereof, the Company at its expense shall execute and deliver,
in lieu thereof, a new Warrant of like tenor.

                  11.4.  Adjustments  To  Purchase  Price and  Number of Shares.
Notwithstanding any adjustment in the Purchase Price or in the number or kind of
shares of Common Stock  purchasable  upon exercise of this Warrant,  any Warrant
theretofore  or  thereafter  issued may  continue to express the same number and
kind of shares of Common  Stock as are  stated  in this  Warrant,  as  initially
issued.

                  11.5.   Fractional  Shares.   Notwithstanding  any  adjustment
pursuant  to Section 3 in the number of shares of Common  Stock  covered by this
Warrant  or any  other  provision  of this  Warrant,  the  Company  shall not be
required  to issue  fractions  of shares  upon  exercise  of this  Warrant or to
distribute  certificates which evidence fractional shares. In lieu of fractional
shares, the Company shall make payment to the Holder, at the time of exercise of
this  Warrant as herein  provided,  in an amount in cash equal to such  fraction
multiplied by the Current Market Price of a share of Common Stock on the date of
Warrant exercise.

                  12. Remedies;  Specific  Performance.  The Company  stipulates
that there would be no adequate  remedy at law to the Holder of this  Warrant in
the event of any default or threatened default by the Company in the performance
of or  compliance  with any of the terms of this  Warrant and  accordingly,  the
Company  agrees that, in addition to any other remedy to which the Holder may be
entitled at law or in equity, the Holder shall be entitled to seek to compel

                                       17
<PAGE>

specific  performance  of the  obligations  of the Company  under this  Warrant,
without the posting of any bond, in accordance  with the terms and conditions of
this  Warrant  in any court of the  United  States or any State  thereof  having
jurisdiction,  and if any action  should be brought in equity to enforce  any of
the  provisions  of this  Warrant,  the Company shall not raise the defense that
there is an adequate remedy at law. Except as otherwise provided by law, a delay
or omission by the Holder hereof in exercising any right or remedy accruing upon
any such breach  shall not impair the right or remedy or  constitute a waiver of
or  acquiescence  in any such breach.  No remedy shall be exclusive of any other
remedy. All available remedies shall be cumulative.

                  13. No Rights or Liabilities as Shareholder. Nothing contained
in this  Warrant  shall be construed as  conferring  upon the Holder  hereof any
rights as a  stockholder  of the Company or as imposing  any  obligation  on the
Holder to purchase any  securities or as imposing any  liabilities on the Holder
as a stockholder  of the Company,  whether such  obligation or  liabilities  are
asserted by the Company or by creditors of the Company.

                  14.  Notices.   Any  notices,   consents,   waivers  or  other
communications  required or permitted to be given  hereunder  must be in writing
and will be deemed to have  been  delivered  (i) upon  receipt,  when  delivered
personally; (ii) upon receipt, when sent by facsimile, provided a copy is mailed
by U.S.  certified mail,  return receipt  requested;  (iii) three (3) days after
being sent by U.S. certified mail, return receipt requested, or (iv) one (1) day
after deposit with a nationally  recognized  overnight delivery service, in each
case  properly  addressed to the party to receive the same.  The  addresses  and
facsimile numbers for such communications shall be:

                  If to the Company:

                           Capita Research Group, Inc.
                           591 Skippack Pike

                           Suite 300
                          Blue Bell, Pennsylvania 19422
                           Telephone:     215-619-7777
                           Facsimile:     215-619-0775
                           Attention:  Chief Financial Officer

                  With a copy to:

                           Torys
                           237 Park Avenue
                            New York, New York 10017
                           Telephone:     212-880-6000
                           Facsimile:     212-682-0200
                           Attention:     Andrew J. Beck, Esq.

                  If to a Holder,  to its  address and  facsimile  number on the
register  maintained  by the  Company.  Each party shall  provide five (5) days'

                                       18
<PAGE>

prior  written  notice to the other party of any change in address or  facsimile
number.  Notwithstanding  the  foregoing,  the exercise of any Warrant  shall be
effective in the manner provided in Section 2.

                  15.  Amendments.  This  Warrant and any term hereof may not be
amended,  modified,  supplemented  or  terminated,  and  waivers or  consents to
departures  from the  provisions  hereof  may not be given,  except  by  written
instrument  duly  executed  by the  party  against  which  enforcement  of  such
amendment,  modification,  supplement,  termination  or consent to  departure is
sought.

                  16.  Descriptive  Headings,  Etc. The headings in this Warrant
are for  convenience of reference  only and shall not limit or otherwise  affect
the  meaning  of terms  contained  herein.  Unless the  context of this  Warrant
otherwise  requires:  (1) words of any gender  shall be deemed to  include  each
other  gender;  (2) words using the singular or plural number shall also include
the plural or singular number,  respectively;  (3) the words "hereof",  "herein"
and  "hereunder"  and words of similar  import when used in this  Warrant  shall
refer to this  Warrant as a whole and not to any  particular  provision  of this
Warrant, and Section and paragraph references are to the Sections and paragraphs
of this Warrant unless otherwise  specified;  (4) the word "including" and words
of similar  import  when used in this  Warrant  shall mean  "including,  without
limitation,"  unless  otherwise  specified;  (5) "or" is not exclusive;  and (6)
provisions apply to successive events and transactions.

                  17. GOVERNING  LAW.   This  Warrant  shall be governed by, and
construed in accordance  with, the laws of the State of New York (without giving
effect to the conflict of laws principles thereof).

                  18. Judicial Proceedings. Any legal action, suit or proceeding
brought  against the Company  with respect to this Warrant may be brought in any
federal court of the Southern District of New York or any state court located in
New York  County,  State of New York,  and by  execution  and  delivery  of this
Warrant, the Company hereby irrevocably and unconditionally waives any claim (by
way of motion,  as a defense or  otherwise)  of improper  venue,  that it is not
subject  personally to the  jurisdiction of such court,  that such courts are an
inconvenient  forum  or that  this  Warrant  or the  subject  matter  may not be
enforced in or by such court. The Company hereby irrevocably and unconditionally
consents  to the service of process of any of the  aforementioned  courts in any
such action,  suit or proceeding by the mailing of copies  thereof by registered
or certified mail, postage prepaid,  at its address set forth or provided for in
Section 14, such service to become effective 10 days after such mailing. Nothing
herein  contained  shall be  deemed  to  affect  the right of any party to serve
process  in any  manner  permitted  by  law or  commence  legal  proceedings  or
otherwise  proceed against any other party in any other  jurisdiction to enforce
judgments  obtained in any action,  suit or proceeding  brought pursuant to this
Section.  The Company irrevocably  submits to the exclusive  jurisdiction of the
aforementioned courts in such action, suit or proceeding.

                  19. Registration Rights Agreement.  The shares of Common Stock
(and  Other  Securities)  issuable  upon  exercise  of  this  Warrant  (or  upon

                                       19
<PAGE>

conversion  of any  shares of Common  Stock  issued  upon such  exercise)  shall
constitute  Registrable  Securities (as such term is defined in the Registration
Rights  Agreement).  Each holder of this Warrant shall be entitled to all of the
benefits  afforded  to a holder  of any such  Registrable  Securities  under the
Registration  Rights  Agreement  and  such  holder,  by its  acceptance  of this
Warrant,  agrees to be bound by and to comply with the terms and  conditions  of
the Registration Rights Agreement  applicable to such holder as a holder of such
Registrable Securities.

                                      CAPITA RESEARCH GROUP, INC.

                                      By:  /s/ David B. Hunter
                                           ---------------------
                                           Name: David B. Hunter
                                           Title: President

                                       20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]