Document:

STOCK OPTION AGREEMENT

Exhibit 4.7

STOCK OPTION AGREEMENT

 

AGREEMENT, made as of this 3rd day of
February, 2004, by and between Critical Home Care, Inc., a Delaware corporation
having its principle executive offices at 762 Summa Avenue, Westbury, new York 
11590 (the "Grantor"), and Stephen Garchik, Trustee, with offices at 9001
Congressional Court, Potomac, Maryland 20854 (the "Optionee").

W I T N E S S
E T H:

For good and valuable consideration, the
receipt and sufficiency of which are acknowledged, the Grantor hereby grants and
Optionee an option (the "Option") to purchase shares of the Grantor's
common stock $.25 par value per share (the "Common Stock"), upon the
following terms and conditions:

1.     OPTION.

The Grantor hereby grants to the
Optionee the Option, which shall be a nonstatutory stock option not intended to
qualify as an incentive stock option, under Section 422 of the Internal Revenue
Code of 1986, as amended (the "Code"), to purchase, until 5:00 P.M. New
York City time on February 3, 2014, unless earlier terminated hereunder ("Termination
Date"), 500,000 fully paid and nonassessable shares of Common Stock.

2.     PURCHASE
PRICE.

The purchase price for such shares of
Common Stock ("Purchase Price") shall be $.25 per share.  The
Grantor shall pay all original issue or transfer taxes on the exercise of this
Option and all other fees and expenses necessarily incurred by the Grantor in
connection therewith.

3.     EXERCISE
OF OPTION.

(a)     The Optionee
shall notify the Grantor by hand delivery or by registered or certified mail,
return receipt requested, addressed to its principal office (Attn:  Chief
Executive Officer), of the number of shares of Common Stock which Optionee
desires to purchase pursuant to the exercise of the Option herein granted, which
notice shall be accompanied by (i) a certified or bank check payable to the
order of the Grantor in an amount equal to the Purchase Price multiplied by the
number of shares of Grantor's Common Stock for which this Option is being
exercised, or (ii) the delivery of shares of Grantor's Common Stock having a
fair market value equal tot he Purchase Price multiplied by the number of shares
of Grantor's Common  Stock for which this Option is being exercised.

(b)     If the
Common Stock is registered under the Securities Exchange Act of 1934, as
amended, the Optionee may, at its option, elect to exercise this Option in whole
or in part and at any time or from time to time on a cashless basis by
surrendering this Option with the exercise form appended hereto duly executed by
or on behalf of the Optionee, at the principal office of the Grantor, or at such
other officer or agency as the Grantor may designate, by canceling a portion of
this Option in payment of the Purchase Price payable in respect of the number of
shares purchased upon such exercise.  If the Optionee wishes to exercise
this Option pursuant to this method of payment, then the number of shares so
purchasable shall be equal to

the total number of shares for which this Option is being
exercised (including both the shares issued to the Optionee and the shares
subject to the portion of the Option being cancelled in payment of the Purchase
Price), multiplied by a fraction (A) the numerator of which shall be the excess
of the Fair Market Value per share as of the exercise date over the Purchase
Price per share and (B) the denominator of which shall be the Fair Market Value
per share.  The Fair Market Value per share shall be deemed to be aggregate
Market Price (as defined herein) of the Common Stock on the exercise date. 
For the purposes of this Option, "Market Price" means as to the Common Stock the
average of the closing sales prices of the Common Stock on all national
securities exchanges on which the Common Stock may at the time be listed or
quoted, including for this purpose The Nasdaq Stock Market, or, if there have
been no sales on any such exchange on any day, or, if on any day the Common
Stock is not so listed or quoted, the average of the highest bid and lowest
asked prices on such day in the domestic over-the-counter market as reported by
the National Quotation Bureau, Incorporated, or any similar successor
organization.

(c)     The Option
granted hereunder shall vest immediately.

4.     
DIVISIBILITY AND ASSIGNABILITY OF THE OPTION.

(a)     The Optionee
may exercise the Option herein granted from time to time subject to the
provisions above with respect to any whole number of shares included therein,
but in no event may an Option be exercised as to less than one hundred (100)
shares at any one time.

(b)  Except as specifically
provided herein, the Optionee may not give, grant, sell, exchange, transfer
legal title, pledge, assign or otherwise encumber or dispose of the Option
herein granted or any interest therein, otherwise than by will or the laws of
descent and distribution, and the Option herein granted shall be exercisable
during the Optionee's lifetime only by the Optionee.

5.     STOCK AS
INVESTMENT.

By accepting the Option herein granted,
the Optionee agrees for himself, his heirs and legatees that any an all shares
of Common Stock purchased hereunder shall be acquired for investment purposes
only and not for sale or distribution, and upon th3 issuance of any or all of
the shares of Common Stock issuable under the Option, the Optionee, or his heirs
or legatees receiving such shares of Common Stock, shall deliver to the Grantor
a representation in writing, that such shares of Common Stock, shall deliver to
the Grantor a representation in writing, that such shares of Common Stock are
being acquired in good faith for investment purposes only and not for sale or
distribution except pursuant to registration under the Securities Act of 1933,
as amended, or on exemption therefrom.  Grantor shall place the following
legend on the stock certificates evidencing such shares of Common Stock:

  
    "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
    SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS.  THEY
    MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
    A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH
    ACT OR SUCH LAWS OR AN EXEMPTION FROM THE REQUIREMENTS THEREOF."

  

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6.     ADJUSTMENT
ON CHANGES IN CAPITALIZATION.

(a)     In the vent
of changes in the outstanding Common Stock of the Grantor by reason of stock
dividends, stock splits, recapitalizations, reclassifications, combinations and
exchanges of shares, the number of shares of Common Stock as to which the Option
may be exercised shall be correspondingly adjusted by the Grantor, and the
Purchase Price shall be adjusted so that the product of the Purchase Price
immediately after such event multiplied by the number of shares as to which this
Option is exercisable immediately after such event shall be equal to the product
of the Purchase Price multiplied by the number of shares subject to this Option
immediately prior to the occurrence of such event.  No adjustment shall be
made with respect to stock dividends or splits which do not exceed 5% in any
fiscal year, cash dividends or the issuance to stockholders of the Grantor of
rights to subscribe for additional shares of Common Stock or other securities.

(b)     In the event
of any consolidation or merger of the Grantor with or into another company, or
the conveyance of all or substantially all of the assets of the Grantor to
another company for solely stock and/or securities, the Option granted hereunder
shall upon exercise thereafter entitle the holder thereof to such number of
shares of Common Stock or other securities or property to which a holder of
shares of Common Stock of the Grantor would have been entitled to upon such
consolidation, merger or conveyance; and in any such case appropriate
adjustment, as determined by the Board of Directors of the Grantor (or successor
entity) shall be made as set forth above with respect to any future changes in
the capitalization of the Grantor or its successor entity.  In the event of
the proposed dissolution or liquidation of the Grantor, or except as provided in
(d) below, the sale of substantially all of the assets of the Grantor for other
than stock/and or securities, the Option granted hereunder will automatically
terminate, unless otherwise provided by the Board of Directors of the Grantor or
any authorize committee thereof.

(c)     Any
adjustment in the number of shares of Common Stock shall apply proportionately
to only the unexercised portion of the Option granted hereunder.  if
fractions of a share of Common Stock would result from any such adjustment, the
adjustment shall be revised to the next higher whole number of shares of Common
Stock so long as such increase does not result in the holder of the Option being
deemed to own more than 5% of the total combines voting power or value of all
classes of shares of capital stock of the Grantor or subsidiaries.

(d)     If any
unexercised option is not terminated pursuant to subparagraph (b) above, any
option granted under the Plan may, at the discretion of the Board of Directors
of the Grantor and said other corporation, be exchanged for options to purchase
shares of capital stock of another corporation which the grantor and/or a
subsidiary thereof is merged into, consolidated with, or all or substantial
portion of the property or stock of which is acquired by or separated or
reorganized into.  The terms, provisions and benefits to the Optionee of
such substitute option(s) shall in all respects be identical to the terms,
provisions and benefits of Optionee under this Option prior to said
substitution.  To the extent the above may be inconsistent with Sections
424(a)(1) and (2) of the Code, the above shall be deemed interpreted so as to
comply therewith.

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7.     NO RIGHTS
IN OPTION STOCK.

Optionee shall have no rights as a
shareholder in respect of shares of Common Stock as to which the Option granted
hereunder shall not have been exercised and payment made as herein provided. 
Grantor acknowledges that all options transferee to Optionee shall be the
property of Optionee and Grantor shall have no ownership interest or other claim
to the options at any time, including, but not limited to once the Grantor
fulfills its obligation under the Note.

8.     BINDING
EFFECT.

Except as herein otherwise expressly
provided, this Agreement shall be binding upon and inure to the benefit of the
parties hereto, their successors, legal representatives and assigns.

9.     
MISCELLANEOUS.

This Agreement shall be construed under
the laws of the State of New York, without application to the principles of
conflicts of laws.  Headings have been included herein for convenience of
reference only, and shall not be deemed a part of the Agreement. 
References in this Agreement to the pronouns "him," "he" and "his" are not
intended to convey the masculine gender alone and are employed in a generic
sense apply equally to the feminine gender or to an entity.

 

 

 

 

 

 

 

 

 

4

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the day and year first above written.

	
     	
    CRITICAL HOME CARE, INC.By:      
       /s/ David S. Bensol                                       

    Name:  David S. Bensol

    Title:   President and Chief Executive Officer

	 	
    

 
	 	
    ACCEPTED AND AGREED TO:By:     
    /s/ Stephen Garchik, Trustee                               
    

               Stephen
    Garchik, Trustee

             
    xxx-xx-xxxx                                                  

            Social Security Number

 

 

 

 

 

 

 

5

EXERCISE OF OPTION

TO

PURCHASE SHARES

TO::           
Critical Home Care, Inc.

The undersigned hereby (i) exercises the
enclosed option for the purchase of  _______________ shares of Common Stock
according to the terms and conditions of Section 39(a) thereof and herewith
makes payment of $_____________ representing the purchase price in full or (ii)
authorized the Grantor to convert ____________ shares of the Common Stock
covered by such option into the number of shares of Common Stock issuable
pursuant to Section 3(b) of the option.  The undersigned is acquiring such
shares for investment purposes only and not with a view to the sale or
distribution thereof, except pursuant to registration under the Securities Act
of 1933, as amended, or an exemption therefrom.

	
     	
    _____________________________

    Name (please print) 

    _____________________________

    Signature

     

    ______________________________

    Social Security or

    Taxpayer I.D. Number

	
     	 

 

 

 

 

 

6THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE
          SECURITIES MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF SUCH
         REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

                            CRITICAL HOME CARE, INC.

           Warrant for the Purchase of 100,000 Shares of Common Stock

         THIS CERTIFIES that, for value received, CLEVELAND OVERSEAS, LTD. (the
"Holder"), is entitled to subscribe for and purchase from CRITICAL HOME CARE,
INC. (the "Company"), upon the terms and conditions set forth herein, at any
time or from time to time after the date hereof and before 5:00 P.M., New York
time, on the fifth anniversary hereof (the "Exercise Period"), up to 100,000
shares of the Company's Common Stock. The Warrant Shares (as hereinafter
defined) shall be issuable at a price equal to the lesser of (a) $1.00, and (b)
the lowest price per share (determined, in the case of such rights, options,
warrants, or convertible or exchangeable securities, by dividing (x) the total
amount received or receivable by the Company in consideration of the sale and
issuance of such rights, options, warrants, or convertible or exchangeable
securities, plus the minimum aggregate consideration payable to the Company upon
exercise, conversion, or exchange thereof, by (y) the maximum number of shares
covered by such rights, options, warrants, or convertible or exchangeable
securities) received by the Company during the twelve month period following the
date hereof in connection with the issuance of any Common Stock or rights,
options, or warrants to subscribe for or purchase Common Stock, or securities
convertible into or exchangeable for Common Stock (excluding Excluded Stock (as
hereinafter defined) (the "Exercise Price").

         As used herein the term "this Warrant" shall mean and include this
Warrant and any Warrants hereafter issued as a consequence of the exercise,
conversion or transfer of this Warrant in whole or in part; and the terms
"Holder" or "Holders" as used herein shall include any transferee to whom this
Warrant or any portion hereof has been transferred. The number of shares
issuable upon exercise or conversion of this Warrant (the "Warrant Shares") and
the Exercise Price may be adjusted from time to time as hereinafter set forth.

         1.       Method of Exercise. This Warrant may be exercised during the
Exercise Period, as to the whole or any lesser number of whole Warrant Shares,
by the surrender of this Warrant (with a completed Election of Exercise in the
form at the end hereof duly executed) to the Company at its office at 762 Summa
Avenue, Westbury, New York or at such other place as is designated in writing by
the Company, toIgether with a certified or bank cashier's check payable to the
order of the Company in an amount equal to the Exercise Price multiplied by the
number of Warrant Shares for which this Warrant is being exercised (the "Stock
Purchase Price").

         2.       Cashless Exercise.

                  (a) In lieu of the payment of the Stock Purchase Price, the
Holder shall

<PAGE>

have the right (but not the obligation), to require the Company to
convert this Warrant, in whole or in part, into shares of Common Stock (the
"Conversion Right") as provided for in this Section 2. Upon exercise of the
Conversion Right, the Company shall deliver to the Holder (without payment by
the Holder of any of the Stock Purchase Price) that number of shares of Common
Stock (the "Conversion Shares") equal to the quotient obtained by dividing (x)
the value of this Warrant (or portion thereof as to which the Conversion Right
is being exercised if the Conversion Right is being exercised in part) at the
time the Conversion Right is exercised (determined by subtracting the aggregate
Stock Purchase Price of the shares of Common Stock as to which the Conversion
Right is being exercised in effect immediately prior to the exercise of the
Conversion Right from the aggregate Current Market Price (as defined in Section
2(c) hereof) of the shares of Common Stock as to which the Conversion Right is
being exercised) by (y) the Current Market Price of one share of Common Stock
immediately prior to the exercise of the Conversion Right.

                  (b) The Conversion Right provided under this Section 2 may be
exercised in whole or in part and at any time and from time to time while this
Warrant remains outstanding. In order to exercise the Conversion Right, the
Holder shall surrender to the Company, at its offices, this Warrant with a
completed Notice of Conversion at the end hereof duly executed. The presentation
and surrender shall be deemed a waiver of the Holder's obligation to pay all or
any portion of the aggregate purchase price payable for the shares of Common
Stock as to which such Conversion Right is being exercised. This Warrant (or so
much thereof as shall have been surrendered for conversion) shall be deemed to
have been converted immediately prior to the close of business on the day of
surrender of such Warrant for conversion in accordance with the foregoing
provisions.

                  (c) For the purpose of this Warrant, the "Current Market
Price" per share of Common Stock on any date shall be deemed to be the average
of the daily closing prices for the 30 consecutive trading days immediately
preceding the date in question. The closing price for each day shall be the last
reported sales price, regular way, or, in case no such reported sale takes place
on such day, the closing bid price regular way, in either ease on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading or, if the Common Stock is listed for trading in the NASDAQ Stock
Market, the last reported sales price, regular way, or, in case no such reported
sale takes place on such day, the highest reported bid price, regular way, on
such market or, if the Common Stock is not listed or admitted to trading on any
national securities exchange or in the NASDAQ Stock Market, the highest reported
bid price for the Common Stock as furnished by the National Association of
Securities Dealers, Inc. through the OTC Bulletin Board or its successor the
Bulletin Board Exchange (the "BBX") or a similar organization if the NASD is no
longer reporting such information. If on any such date the Common Stock is not
listed or admitted to trading on any national securities exchange or in the
NASDAQ Stock Market and is not quoted by NASD or any similar organization, the
fair value of a share of Common Stock on such date, as determined in good faith
by the board of directors of the Company (giving consideration to other recent
closing, sale or bid prices or to the price paid per share in the Company's most
recent equity financing or other valuation), shall be used.

         3.       Issuance of Certificates. Upon each exercise of the Holder's
rights to purchase Warrant Shares or Conversion Shares, the Holder shall be
deemed to be the holder of record of the Warrant Shares or Conversion Shares
issuable upon such exercise or conversion,

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<PAGE>

notwithstanding that the transfer books of the Company shall then be closed or
certificates representing such Warrant Shares or Conversion Shares shall not
then have been actually delivered to the Holder. As soon as practicable after
each such exercise or conversion of this Warrant, the Company shall issue and
deliver to the Holder a certificate or certificates for the Warrant Shares or
Conversion Shares issuable upon such exercise or conversion, registered in the
name of the Holder or its designee. If this Warrant should be exercised or
converted in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new warrant evidencing the right of the
Holder to purchase the balance of the Warrant Shares (or portions thereof)
subject to purchase hereunder.

         4.       Recording of Transfer. Any Warrant issued upon the transfer or
exercise or conversion in part of this Warrant shall be numbered and shall be
registered in a Warrant Register as they are issued. 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. This Warrant shall be transferable only on the books
of the Company upon delivery thereof duly endorsed by the Holder or by such
Holder's duly authorized attorney or representative, or accompanied by proper
evidence of succession, assignment, or authority to transfer. In all cases of
transfer by an attorney, executor, administrator, guardian, or other legal
representative, duly authenticated evidence of his or its authority shall be
produced. Upon any registration of transfer, the Company shall deliver a new
Warrant or Warrants to the person entitled thereto. This Warrant may be
exchanged, at the option of the Holder thereof, for another Warrant, or other
Warrants of different denominations, of like tenor and representing in the
aggregate the right to purchase a like number of Warrant Shares (or portions
thereof), upon surrender to the Company or its duly authorized agent.
Notwithstanding the foregoing, the Company shall have no obligation to cause
Warrants to be transferred on its books to any person if, in the opinion of
counsel to the Company, such transfer does not comply with the provisions of the
Securities Act of 1933, as amended (the "Act"), and the rules and regulations
thereunder.

         5.       Reservation of Shares. The Company shall at all times reserve
and keep available out of its authorized and unissued Common Stock, solely for
the purpose of providing for the exercise of the rights to purchase all Warrant
Shares and/or Conversion Shares granted pursuant to this Warrant, such number of
shares of Common Stock as shall, from time to time, be sufficient therefore. The
Company covenants that all shares of Common Stock issuable upon exercise of this
Warrant, upon receipt by the Company of the full Exercise Price therefore, and
all shares of Common Stock issuable upon conversion of this Warrant, shall be
validly issued, fully paid, non-assessable, and free of preemptive rights.

         6.       Exercise Price Adjustments.

                  (a) In case the Company shall at any time after the date
hereof (i) declare or issue a dividend on the outstanding shares of Common Stock
payable solely in shares of its capital stock, (ii) subdivide the outstanding
Common Stock into a greater number of shares, (iii) combine the outstanding
Common Stock into a smaller number of shares, or (iv) issue any shares of its
capital stock by reclassification of the Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then, in each case, the Exercise Price,
and the number and kind of securities

                                       3
<PAGE>

issuable upon exercise or conversion of this Warrant, in effect at the time of
the record date for such dividend or of the effective date of such subdivision,
combination, or reclassification, shall be proportionately adjusted so that the
Holder after such time shall be entitled to receive the aggregate number and
kind of shares which, if such Warrant had been exercised or converted
immediately prior to such time, such Holder would have owned upon such exercise
or conversion and been entitled to receive by virtue of such dividend,
subdivision, combination, or reclassification. Such adjustment shall be made
successively whenever any event listed above shall occur.

                  (b) In case the Company shall issue or fix a record date for
the issuance to all holders of Common Stock of rights, options, or warrants to
subscribe for or purchase Common Stock (or securities convertible into or
exchangeable for Common Stock) at a price per share (or having a conversion or
exchange price per share, if a security convertible into or exchangeable for
Common Stock) less than the Exercise Price per share of Common Stock on such
record date, then, in each case, the Exercise Price shall be reduced to a price
(calculated to the nearest cent) determined by multiplying such Exercise Price
by a fraction, the numerator of which shall be the number of shares of Common
Stock outstanding on such record date plus the number of shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock
so to be offered (or the aggregate initial conversion or exchange price of the
convertible or exchangeable securities so to be offered) would purchase at such
Exercise Price, and the denominator of which shall be the number of shares of
Common Stock outstanding on such record date plus the number of additional
shares of Common Stock to be offered for subscription or purchase (or into which
the convertible or exchangeable securities so to be offered are initially
convertible or exchangeable). Such adjustment shall become effective at the
close of business on such record date. In case any subscription price may be
paid in a consideration part or all of which shall be in a form other than cash,
the value of such consideration shall be as determined in good faith by the
board of directors of the Company, whose determination shall be conclusive
absent manifest error. Such adjustment shall be made successively whenever any
event listed above shall occur.

                  (c) In case the Company shall distribute to all holders of
Common Stock (including any such distribution made to the stockholders of the
Company in connection with a consolidation or merger in which the Company is the
continuing corporation) evidences of its indebtedness or assets (other than cash
dividends or distributions and dividends payable in shares of Common Stock), or
rights, options, or warrants to subscribe for or purchase Common Stock, or
securities convertible into or exchangeable for shares of Common Stock
(excluding those with respect to the issuance of which an adjustment of the
Exercise Price is provided pursuant to Section 6(b) hereof), then, in each case,
the Exercise Price shall be adjusted by multiplying the Exercise Price in effect
immediately prior to the record date for the determination of stockholders
entitled to receive such distribution by a fraction, the numerator of which
shall be the Current Market Price per share of Common Stock on such record date,
less the fair market value (as determined in good faith by the board of
directors of the Company, whose determination shall be conclusive absent
manifest error) of the portion of the evidences of indebtedness or assets so to
be distributed, or of such rights, options, or warrants or convertible or
exchangeable securities, applicable to one share, and the denominator of which
shall be such Current Market Price per share of Common Stock. Such adjustment
shall be made whenever any such distribution is made, and shall become effective
on the record date for the determination of

                                       4
<PAGE>

stockholders entitled to receive such distribution.

                  (d) In case the Company shall issue shares of Common Stock or
rights, options, or warrants to subscribe for or purchase Common Stock, or
securities convertible into or exchangeable for Common Stock (excluding Excluded
Stock (as hereinafter defined)), at a price per share (determined, in the case
of such rights, options, warrants, or convertible or exchangeable securities, by
dividing (x) the total amount received or receivable by the Company in
consideration of the sale and issuance of such rights, options, warrants, or
convertible or exchangeable securities, plus the minimum aggregate consideration
payable to the Company upon exercise, conversion, or exchange thereof, by (y)
the maximum number of shares covered by such rights, options, warrants, or
convertible or exchangeable securities) less than the Exercise Price per share
of Common Stock in effect immediately prior to such issuance, then the Exercise
Price shall be reduced, concurrently with such issue, to a price (calculated to
the nearest cent) determined by multiplying such Exercise Price by a fraction,
the numerator of which shall be the number of shares of Common Stock which
aggregate consideration received by the Company for the total number of
additional shares of Common Stock so issued would purchase at such Exercise
Price, and the denominator of which shall be the number of shares of Common
Stock outstanding immediately prior to such issue, plus the number of such
additional shares of Common Stock issued. For the purposes of such adjustments,
the maximum number of shares which the holders of any such rights, options,
warrants, or convertible or exchangeable securities, shall be entitled to
initially subscribe for or purchase or convert or exchange such securities into
shall be deemed to be issued and outstanding as of the date of such issuance,
and the consideration received by the Company therefore shall be deemed to be
the consideration received by the Company for such rights, options, warrants, or
convertible or exchangeable securities, plus the minimum aggregate consideration
or premiums stated in such rights, options, warrants, or convertible or
exchangeable securities, to be paid for the shares covered thereby. No further
adjustment of the Exercise Price shall be made as a result of the actual
issuance of shares of Common Stock on exercise of such rights, options, or
warrants, or on conversion or exchange of such convertible or exchangeable
securities. In case the Company shall issue shares of Common Stock or any such
rights, options, warrants, or convertible or exchangeable securities, for a
consideration consisting, in whole or in part, of property other than cash or
its equivalent, then the "price per share" and the "consideration received by
the Company" for purposes of the first sentence of this Section 6(d) shall be as
determined in good faith by the board of directors of the Company, whose
determination shall be conclusive absent manifest error. For purposes of this
Section 6(d) the term "Excluded Stock" shall mean (i) shares, rights, options,
warrants, or convertible or exchangeable securities, issued or issuable (x) in
any of the transactions with respect to which an adjustment of the Exercise
Price is provided pursuant to Sections 6(a), 6(b), or 6(c) above, (y) upon
exercise of this Warrant, and (z) issued or issuable pursuant to the exercise of
warrants existing as of the date hereof or warrants, options or other rights
granted in connection with any equipment lease, technology license, vendor,
recruiter or customer relationship, consolidation, merger, sale of assets, a
similar transaction set forth in Section 7 herein, or a similar non-equity
financing transaction approved by the Company's Board of Directors, (ii) shares
of Common Stock reserved for issuance to officers, directors, employees and
consultants of the Company pursuant to an employee plan hereafter adopted by the
Company, (iii) shares of Common Stock issued in connection with an underwritten
public offering pursuant to an effective registration statement filed with the
United States Securities and

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<PAGE>

Exchange Commission under the Securities Act of 1933, as amended, covering the
offer and sale of the Common Stock, and (iv) shares of Common Stock issued upon
exercise or conversion of any shares of Preferred Stock of the Company
outstanding as of the date hereof.

                  (e) No adjustment in the Exercise Price shall be required if
such adjustment is less than $.0l; provided, however, that any adjustments which
by reason of this Section 6 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 6 shall be made to the nearest cent or to the nearest one-thousandth of
a share, as the case may be.

                  (f) In any case in which this Section 6 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer, until the occurrence of such
event, issuing to any Holder, if such Holder exercised or converted this Warrant
after such record date, the shares of Common Stock, if any, issuable upon such
exercise or conversion over and above the shares of Common Stock, if any,
issuable upon such exercise or conversion on the basis of the Exercise Price in
effect prior to such adjustment; provided, however, that the Company shall
deliver to such Holder a due bill or other appropriate instrument evidencing
such Holder's right to receive such additional shares upon the occurrence of the
event requiring such adjustment.

                  (g) Upon each adjustment of the Exercise Price as a result of
the calculations made in Sections 6(b), 6(c), or 6(d) hereof, this Warrant shall
thereafter evidence the right to purchase, at the adjusted Exercise Price, that
number of shares (calculated to the nearest thousandth) obtained by dividing (i)
the product obtained by multiplying the number of shares purchasable upon
exercise of this Warrant prior to adjustment of the number of shares by the
Exercise Price in effect prior to adjustment of the Exercise Price, by (ii) the
Exercise Price in effect after such adjustment of the Exercise Price.

                  (h) Whenever there shall be an adjustment as provided in this
Section 6, the Company shall promptly cause written notice thereof to be sent by
registered mail, postage prepaid, to each Holder, at such Holder's address as it
shall appear in the Warrant Register, which notice shall be accompanied by an
officer's certificate setting forth the number of Warrant Shares purchasable
upon the exercise of this Warrant and the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment and
the computation thereof, which officer's certificate shall be conclusive
evidence of the correctness of any such adjustment absent manifest error.

                  (i) The Company shall not be required to issue fractions of
shares of Common Stock or other capital stock of the Company upon the exercise
or conversion of this Warrant. If any fraction of a share would be issuable on
the exercise or conversion of this Warrant (or specified portions thereof), the
Company shall purchase such fraction for an amount in cash equal to the same
fraction of the Current Market Price of such share of Common Stock on the date
of exercise or conversion of this Warrant.

         7.       Consolidation and Mergers.

                  (a) In case of any consolidation with or merger of the Company
with or

                                       6
<PAGE>

into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease, or conveyance to another corporation of the property and assets of any
nature of the Company as an entirety or substantially as an entirety, such
successor, leasing, or purchasing corporation, as the case may be, shall (i)
execute with the Holder an agreement providing that the Holder shall have the
right thereafter to receive upon exercise or conversion of this Warrant solely
the kind and amount of shares of stock and other securities, property, cash, or
any combination thereof receivable upon such consolidation, merger, sale, lease,
or conveyance by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised or converted immediately prior to such
consolidation, merger, sale, lease, or conveyance, and (ii) make effective
provision in its certificate of incorporation or otherwise, if necessary, to
effect such agreement. Such agreement shall provide for adjustments which shall
be as nearly equivalent as practicable to the adjustments in Section 6.

                  (b) In case of any reclassification or change of the shares of
Common Stock issuable upon exercise or conversion of this Warrant (other than a
change in par value or from no par value to a specified par value, or as a
result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), or in case of any consolidation
or merger of another corporation into the Company in which the Company is the
continuing corporation and in which there is a reclassification or change
(including a change to the right to receive cash or other property) of the
shares of Common Stock (other than a change in par value, or from no par value
to a specified par value, or as a result of a subdivision or combination, but
including any change in the shares into two or more classes or series of
shares), the Holder shall have the right thereafter to receive upon exercise or
conversion of this Warrant solely the kind and amount of shares of stock and
other securities, property, cash, or any combination thereof receivable upon
such reclassification, change, consolidation, or merger by a holder of the
number of shares of Common Stock for which this Warrant might have been
exercised or converted immediately prior to such reclassification, change,
consolidation, or merger. Thereafter, appropriate provision shall be made for
adjustments which shall be as nearly equivalent as practicable to the
adjustments in Section 6.

                  (c) The above provisions of this Section 7 shall similarly
apply to successive reclassifications and changes of shares of Common Stock and
to successive consolidations, mergers, sales, leases, or conveyances.

         8.       Notices of Certain Events. In case at any time the Company
shall propose:

                  (a) to pay any dividend or make any distribution on shares of
Common Stock in shares of Common Stock or make any other distribution (other
than regularly scheduled cash dividends which are not in a greater amount per
share than the most recent such cash dividend) to all holders of Common Stock;
or

                  (b) to issue any rights, warrants, or other securities to all
holders of Common Stock entitling them to purchase any additional shares of
Common Stock or any other rights, warrants, or other securities; or

                  (c) to effect any reclassification or change of outstanding
shares of

                                       7
<PAGE>

Common Stock, or any consolidation, merger, sale, lease, or conveyance of
property, described in Section 7; or

                  (d) to effect any liquidation, dissolution, or winding-up of
the Company; or

                  (e) to take any other action (including an issuance of
securities) which would cause an adjustment to the Exercise Price; then, and in
any one or more of such cases, the Company shall give written notice thereof, by
registered mail, postage prepaid, to each of the Holders at the Holders'
respective addresses as it shall appear in the Warrant Register, mailed at least
15 days prior to (i) the date as of which the holders of record of shares of
Common Stock to be entitled to receive any such dividend, distribution, rights,
warrants, or other securities are to be determined, (ii) the date on which any
such reclassification, change of outstanding shares of Common Stock,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up is expected to become effective, and the date as of
which it is expected that holders of record of shares of Common Stock shall be
entitled to exchange their shares for securities or other property, if any,
deliverable upon such reclassification, change of outstanding shares,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up, or (iii) the date of such action which would require
an adjustment to the Exercise Price.

         9.       Taxes. The issuance of any shares or other securities upon the
exercise or conversion of this Warrant, and the delivery of certificates or
other instruments representing such shares or other securities, shall be made
without charge to the Holder for any tax or other charge in respect of such
issuance. The Company shall not, however, be required to pay any tax which may
be payable in respect of any transfer involved in the issue and delivery of any
certificate in a name other than that of the Holder and the Company shall not be
required to issue or deliver any such certificate unless and until the person or
persons requesting the issue thereof shall have paid to the Company the amount
of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

         10.      Legend. Unless the Warrant Shares or Conversion Shares issued
upon exercise or conversion of the Warrants are registered for resale under the
Act, the certificate or certificates evidencing such Warrant Shares or
Conversion Shares shall bear the following legend:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE
     OFFERED OR SOLD IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
     FROM REGISTRATION UNDER SUCH ACT."

         11.      Replacement of Warrants. Upon receipt of evidence satisfactory
to the Company of the loss, theft, destruction, or mutilation of this Warrant
(and upon surrender of this Warrant if mutilated), and upon reimbursement of the
Company's reasonable incidental expenses, the Company shall execute and deliver
to the Holder thereof a new Warrant of like date, tenor, and denomination.

                                       8
<PAGE>

         12.      No Rights as Stockholder. The Holder shall not have, solely on
account of such status, any rights of a stockholder of the Company, either at
law or in equity, or to any notice of meetings of stockholders or of any other
proceedings of the Company, except as provided in this Warrant.

         13.      Governing Law. This Warrant shall be construed in accordance
with the laws of the State of Delaware applicable to contracts made and
performed within such State, without regard to principles of conflicts of law.

         14.      Notices. All notices, requests, consents and other
communications hereunder shall be in writing and shall be sent by registered or
certified mail, postage prepaid, return receipt requested, overnight courier or
otherwise delivered by hand or by messenger:

                  (a) if to the registered Holder of this Warrant, to the
address of such Holder as shown on the books of the Company; or

                  (b) if to the Company, to the address set forth on the first
page of this Warrant or to such other address as the Company may designate by
notice to the Holder.

Each such notice or other communication shall be treated as effective or having
been given (i) when delivered if delivered personally, (ii) if sent by
registered or certified mail, at the earlier of its receipt or three business
days after the same has been registered or certified as aforesaid, or (iii) if
sent by overnight courier, on the next business day after the same has been
deposited with a nationally recognized courier service.

         15.      Headings. The Section headings in this Warrant are inserted
for purposes of convenience only and shall have no substantive effect.

         16.      Modification. Neither this Warrant, nor any Warrants issued
upon transfer, exercise or conversion hereof, may be amended, waived,
discharged, or terminated other than by a written instrument signed by the party
against whom enforcement of any such amendment, waiver, discharge or termination
is sought.

         17.      Successors. All of the covenants, agreements, representations
and warranties contained in this Warrant shall bind the parties hereto and their
respective heirs, executors, administrators, distributees, successors and
assigns.

         18.      Consent to Jurisdiction. The Company irrevocably consents to
the jurisdiction of any federal or state court located in the State of New York
sitting in New York County, New York in connection with any action or proceeding
arising out of or relating to this Warrant, any document or instrument delivered
pursuant to, in connection with or simultaneously with this Warrant, or a breach
of this Warrant or any such document or instrument. In any such action or
proceeding, the Company waives personal service of any summons, complaint or
other process and agrees that service thereof may be made in accordance with
Section 14 hereof

         IN WITNESS WHEREOF, the undersigned has duly executed this Warrant as
of the date and year written below.

                                       9
<PAGE>

Dated: March 3, 2003                     CRITICAL HOME CARE, INC.

                                         By:________________
                                            Name:
                                            Title:

                                       10
<PAGE>

                               FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the
attached Warrant.)

         FOR VALUE RECEIVED, __________________ hereby sells, assigns, and
transfers unto _______________________ a Warrant to purchase _____________
shares of Common Stock, par value $____ per share, of CRITICAL HOME CARE, INC.
(the "Company"), together with all right, title, and interest therein, and does
hereby irrevocably constitute and appoint ____________________________ attorney
to transfer such Warrant on the books of the Company, with full power of
substitution.

                                         Dated:____________________________

                                         By:_____________________
                                            Signature

         The signature on the foregoing Assignment must correspond to the name
as written upon the face of this Warrant in every particular, without alteration
or enlargement or any change whatsoever.

                                       11
<PAGE>

To: CRITICAL HOME CARE, INC.

                              ELECTION TO EXERCISE

         The undersigned hereby exercises his or its rights to purchase
_________ Warrant Shares covered by the within Warrant and tenders payment
herewith in the amount of $______________________ in accordance with the terms
thereof, and requests that certificates for such securities be issued in the
name of, and delivered to:

                   __________________________________________

                   __________________________________________

                   __________________________________________

                   __________________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by within Warrant be registered in the name of, and delivered to,
the undersigned at the address stated below.

                                         Dated:_________________________________

                                         By:
                                            ____________________________________
                                                      Print Name

                                            ____________________________________
                                            Signature
Address:

_____________________________________

_____________________________________

_____________________________________

                                       12
<PAGE>

To: CRITICAL HOME CARE, INC.

                             CASHLESS EXERCISE FORM
            (To be executed upon conversion of the attached Warrant)

         The undersigned hereby irrevocably elects to surrender its Warrant for
the number of shares of Common Stock as shall be issuable pursuant to the
cashless exercise provisions of the within Warrant, in respect of ____________
shares of Common Stock underlying the within Warrant, and requests that
certificates for such securities be issued in the name of and delivered to:

                   __________________________________________

                   __________________________________________

                   __________________________________________

                   __________________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of shares shall not be all the shares exchangeable or
purchasable under the within Warrant, that a new Warrant for the balance of the
Warrant Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the addressed stated below.

Dated: Name____________________                (Print)__________________________

Address:________________________________________________________________________

                                               _________________________________
                                               (Signature)

                                       13

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