VETERINARY CENTERS OF AMERICA INC
SC 13D, EX-7.4, 2000-05-30
AGRICULTURAL SERVICES
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<PAGE>

                                                                     Exhibit 7.4

   THE SHARES OF COMMON STOCK SUBSCRIBED FOR BY THIS AGREEMENT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY OTHER
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD UNLESS
REGISTERED THEREUNDER OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE. TRANSFER OF SUCH SHARES IS ALSO RESTRICTED BY THE TERMS OF THIS
AGREEMENT AND BY THE TERMS OF THE VOTING AGREEMENT WITH VICAR RECAP, INC.

                      EXCHANGE AND SUBSCRIPTION AGREEMENT

   This EXCHANGE AND SUBSCRIPTION AGREEMENT (the "Agreement"), dated as of
March 30, 2000, is entered into by and between Robert L. Antin, an individual
(the "Investor"), and Vicar Recap, Inc., a Delaware corporation (the
"Company").

   WHEREAS, Investor is currently a stockholder in Veterinary Centers of
America, Inc., a Delaware corporation ("VCA"), and is the owner of the number
of shares set forth opposite Investor's name under the caption "Rollover
Shares" in Schedule 1 attached hereto (the "Rollover Shares").

   WHEREAS, in connection with that certain Agreement and Plan of Merger,
dated contemporaneously herewith (the "Merger Agreement"), by and among the
Company, VCA, and Vicar Operating, Inc., a Delaware corporation and a wholly
owned subsidiary of the Company ("Operating Company"), VCA, prior to the
Merger, shall contribute all of its assets, properties, business operations,
and liabilities to Operating Company, following which Company shall merge with
and into VCA, with VCA as the surviving corporation (the "Merger").

   WHEREAS, subject to the terms and conditions in this Agreement, Investor
desires to contribute the Rollover Shares in exchange (the "Exchange") for
newly issued shares of capital stock of the Company (the "Shares"), in the
amounts set forth under the caption "Common Exchange Shares" in Schedule 1
attached hereto.

   NOW, THEREFORE, in order to implement the foregoing and in consideration of
the mutual representations, warranties, covenants and agreements contained
herein and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows.

   1. Contribution of the Rollover Shares.

     1.1. Contribution of the Rollover Shares in Subscription for the
  Shares. On the terms and conditions set forth herein, Investor agrees to
  subscribe for and the Company agrees to issue to Investor the Shares of the
  Company set forth under the caption "Common Exchange Shares" in Schedule 1
  in exchange for the Rollover Shares set forth in Schedule 1.

     1.2. Closing. The closing (the "Closing") of the Exchange shall occur
  immediately prior to the closing of the Merger; provided that the Company
  shall provide at least three (3) business days notice of such time and date
  to Investor. The Closing shall take place at the offices of Troop Steuber
  Pasich Reddick and Tobey, LLP 2029 Century Park East, Los Angeles,
  California 90067 or such other place determined by the parties.

     1.3. Failure to Consummate the Merger. In the event that after the
  contribution and exchange of the Shares for the Rollover Shares as set
  forth in Section 1.1, the Merger fails to be consummated for any reason
  whatsoever and the Merger Agreement is terminated, the parties hereto agree
  that concurrently with the termination of the Merger Agreement, regardless
  of the price at which the common stock of VCA is quoted to be at that time
  on NASDAQ or any other national securities exchange on which the common
  stock of

                                      E-1
<PAGE>

  VCA is listed, the Company shall return to Investor the Rollover Shares and
  Investor shall return to the Company the Shares of the Company.

     1.4. Conditions to Closing. The Closing of the Exchange shall be subject
  to the following conditions unless waived in writing by the parties hereto:

       (a) Merger Agreement Conditions. The conditions to the Merger
    Agreement shall have been satisfied or waived and the parties to the
    Merger Agreement shall have represented that they intend to consummate
    the Merger upon consummation of the Exchange.

       (b) Representations and Warranties. All representations and
    warranties in this Agreement by Investor and the Company shall be true
    and correct in all material respects on the date when made and on and
    as of the Closing date with the same effect as if made on and as of the
    Closing date.

       (c) Covenants and Agreements. Investor and the Company shall have
    performed or complied in all material respects with all covenants and
    conditions contained in this Agreement or in any agreement, certificate
    or instrument to be executed pursuant hereto which are required to be
    performed or complied with at or prior to the Closing.

       (d) Stockholders Agreement. The parties to the Stockholders
    Agreement of the Company shall have executed and delivered such.

     1.5. Company Deliveries. At the Closing, the Company shall deliver to
  Investor stock certificates representing the Shares to be received by
  Investor.

     1.6. Investor Deliveries. At the Closing, Investor shall deliver to the
  Company the following:

       (a) an executed Investment Qualification Questionnaire in the form
    attached hereto; and

       (b) certificate(s) evidencing the Rollover Shares together with duly
    executed stock powers thereof.

   2. Representations and Warranties of the Company. The Company hereby
represents and warrants to Investor as follows.

     2.1. Organization. The Company is a corporation duly organized, validly
  existing and in good standing under the laws of the State of Delaware,
  having full power and authority to own its properties and to carry on its
  business as conducted.

     2.2. Authority. The Company has the requisite corporate power and
  authority to deliver this Agreement, perform its obligations herein, and
  consummate the transactions contemplated hereby. The Company has duly
  executed and delivered this Agreement. This Agreement is a valid, legal and
  binding obligation of the Company enforceable against the Company in
  accordance with its terms, except to the extent that enforceability may be
  limited by applicable bankruptcy, insolvency or similar laws affecting the
  enforcement of creditors' rights generally and subject to general
  principles of equity (regardless of whether such enforcement is considered
  in a proceeding at law or at equity).

     2.3. Shares Duly Authorized. All of the Shares to be issued to Investor
  pursuant to this Agreement, when issued and delivered in accordance with
  the terms of this Agreement, will be duly authorized, validly issued, fully
  paid and non-assessable.

   3. Representations and Warranties of the Investor. Investor hereby
represents and warrants to the Company as follows.

     3.1. Organization. Investor, if an entity, is duly organized, validly
  existing and in good standing under the laws of the state of its
  incorporation or organization, having full power and authority to own its
  properties and to carry on its business as conducted. Investor, if a
  natural person, is of legal age, competent to enter into a contractual
  obligation, and a citizen of the United States of America. The principal
  place of business or principal residence of Investor is as shown on the
  signature page of this Agreement.

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<PAGE>

     3.2. Ownership of the Rollover Shares. Investor is the sole record and
  beneficial owner of the Rollover Shares set forth opposite Investor's name
  in Schedule 1 hereto, free and clear of any claim, lien, security interest,
  mortgage, deed of trust, pledge, charge, conditional sale or other title
  retention agreement, lease, preemptive right, right of first refusal,
  option, restriction, tenancy, easement, license or other encumbrance of any
  kind. Neither Investor nor any of its affiliates is a party to, or bound
  by, any arrangement, agreement, instrument or order (i) relating to the
  sale, repurchase, assignment, or other transfer of any capital stock or
  equity securities of VCA, (ii) relating to the receipt of dividends, proxy
  rights, or voting rights of any capital stock or other equity securities of
  VCA, or (iii) relating to rights to registration under the Securities Act
  of 1933 or the Securities Exchange Act of 1934 of any capital stock or
  equity securities of VCA.

     3.3. Authority. Investor has the requisite power and authority to
  deliver this Agreement, perform Investor's obligations herein, and
  consummate the transactions contemplated hereby. Investor has duly executed
  and delivered this Agreement and has obtained the necessary authorization
  to execute and deliver this Agreement and to perform Investor's obligations
  herein and to consummate the transactions contemplated hereby. This
  Agreement is a valid, legal and binding obligation of Investor enforceable
  against Investor in accordance with its terms, except to the extent that
  enforceability may be limited by applicable bankruptcy, insolvency or
  similar laws affecting the enforcement of creditors' rights generally and
  subject to general principles of equity (regardless of whether such
  enforcement is considered in a proceeding at law or at equity).

     3.4. Investor Intent. Unless Investor is acting in a fiduciary capacity
  as provided in Section 3.5 below, Investor is acquiring the Shares for
  Investor's own account as principal, for investment purposes only, not for
  any other person or entity and not for the purpose of resale or
  distribution.

     3.5. Fiduciary Capacity. If Investor is subscribing for the Shares from
  the Company in a fiduciary capacity, Investor makes these representations
  and warranties on behalf of the person(s) or entity(ies) for whom Investor
  will contribute and exchange the Rollover Shares for the Company's Shares.

     3.6. Financial Status. Investor, alone or together with its Purchase
  Representative (as defined in Rule 501(h) of Regulation D), if applicable,
  has such knowledge and experience in financial and business matters as will
  enable Investor to evaluate the merits and risks of an investment in the
  Company. Investor, if a natural person, has adequate means of providing for
  his or her current financial needs and personal contingencies, and has no
  need for liquidity in the investment in the Shares, understands that he or
  she may not be able to liquidate his or her investment in the Company in an
  emergency, if at all, and can afford a complete loss of the investment.

     3.7. Accredited Investor or Purchaser Representative. Investor (alone or
  acting together with a Purchaser Representative) is an Accredited Investor,
  as defined by Rule 501 of Regulation D of the Securities Act. If Investor
  is a natural person, (i) Investor's individual net worth or joint net worth
  with Investor's spouse at the time of the execution of this Agreement is in
  excess of $1,000,000; or (ii) Investor had an individual income in excess
  of $200,000 in each of the two (2) most recent years or joint income with
  Investor's spouse in excess of $300,000 in each of those years and has a
  reasonable expectation of reaching the same income level in the current
  year.

     3.8. No General Solicitation. Investor has received no general
  solicitation or general advertisement in connection with the Exchange or an
  investment in the Company. Investor has received no other representations
  or warranties from the Company or any other person acting on behalf of the
  Company, other than those contained in this Agreement.

     3.9. Accuracy of Information. As of the date hereof and as of the
  Closing, the representations and warranties of Investor contained herein
  and all information provided by Investor to the Company concerning
  Investor, its financial position and its knowledge of financial and
  business matters including, but not limited to, the information set forth
  in the Investment Qualification Questionnaire, is correct and complete, and
  if

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<PAGE>

  there should be any changes in that information prior to Investor receiving
  the Shares, Investor will immediately provide the Company with the correct
  information.

   4. Agreements and Acknowledgements of Each Investor. Investor hereby agrees
and acknowledges to the Company as follows.

     4.1. No Registration. Investor understands that the Shares being
  acquired by Investor have not been registered under the Securities Act, in
  reliance on an exemption therefrom for transactions not involving any
  public offering, that such Shares have not been approved or disapproved by
  the Securities and Exchange Commission or by any other federal or state
  agency, and that no such agency has passed on the accuracy or adequacy of
  disclosures made to Investor by the Company. No federal or state
  governmental agency has passed on or made any recommendation or endorsement
  of the Shares or an investment in the Company.

     4.2. Limitations on Disposition and Resale. Investor understands that
  the Shares cannot be sold, transferred or otherwise disposed of unless the
  Shares have been registered by the Company pursuant to the Securities Act
  of 1933 and any applicable state securities laws, unless an exemption
  therefrom is available. Investor understands that it may not be possible
  for Investor to liquidate the investment in the Company; and Investor
  agrees not to sell, transfer or otherwise dispose of the Shares unless the
  Shares have been so registered or an exemption from the requirement of
  registration is available under the Securities Act of 1933 and any
  applicable state securities laws. Investor recognizes that there will not
  be any public trading market for the Shares and, as a result, Investor may
  be unable to sell or dispose of its interest in the Company.

     4.3. Newly Formed Entity. Investor recognizes that the Company was only
  recently formed and, accordingly, has no financial or operating history and
  that the investment in the Company is extremely speculative and involves a
  high degree of risk.

     4.4. Compliance with Agreement. Investor agrees to execute any and all
  further documents necessary to become a stockholder of the Company.
  Investor agrees to execute and deliver any and all further documents and
  writings, and to perform such other actions, as may be or become reasonably
  necessary or expedient to effect and carry out the terms of this Agreement.

     4.5. Irrevocable Subscription and Cancellation. Each of Investor and the
  Company understands that this subscription is irrevocable, except as
  expressly provided herein or otherwise provided in any applicable federal
  or state law governing this Agreement and the transactions contemplated
  herein.

     4.6. Purchaser Representative. If Investor used or will use the services
  of a Purchaser Representative in connection with the Exchange, such
  Purchaser Representative has disclosed or will disclose, by submitting to
  the Company a Purchaser Representative Questionnaire in the form given
  Investor by the Company, any material relationship which now exists between
  each Purchaser Representative or its affiliates and the Company and its
  affiliates, or which is mutually understood to be contemplated, or which
  has existed at any time during the previous two (2) years, and further
  setting forth any compensation received or to be received as a result of
  such relationship.

   5. Attorney's Fees. In the event of any litigation or other legal
proceeding involving the interpretation of this Agreement or enforcement of
the rights or obligations of the parties hereto, the prevailing party or
parties shall be entitled to recover reasonable attorney's fees and costs as
determined by a court or other adjudicator.

   6. Governing Law. This Agreement is governed by and shall be construed in
accordance with the law of the State of Delaware, excluding any conflict-of-
laws rule or principle that might refer the governance or construction of this
Agreement to the law of another jurisdiction. If any provision of this
Agreement or the application thereof to any person or circumstance is held
invalid or unenforceable to any extent, the remainder of this Agreement and
the application of that provision to other persons or circumstances is not
affected thereby, and that provision shall be enforced to the greater extent
permitted by law.

   7. Assignment. Investor shall have neither the right nor the power to
assign or delegate any provision of this Agreement except (i) to any existing
stockholder of VCA who is also employed as part of the management

                                      E-4
<PAGE>

thereof who agrees in writing to subscribe to all or some of the shares of the
Company on the same terms and conditions as provided herein as if it were a
signatory hereto, provided, however, that such shares shall qualify for
recapitalization accounting treatment in the Merger, and such assignment shall
not materially adversely affect Recapitalization (as defined in the Merger
Agreement), or (ii) with the prior written consent of the Company. Except as
provided in the preceding sentence, this Agreement shall be binding upon and
shall inure to the benefit of the parties' respective successors, assigns,
executors and administrators.

   8. Counterparts. This Agreement may be executed in separate counterparts,
each of which shall be deemed an original and both of which shall constitute
one and the same document.

   9. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and may
be amended only in a writing executed by the party to be bound thereby.

   10. Termination of Agreement. This Agreement may be terminated: (i) by the
mutual written consent of the parties hereto; (ii) by the Company or Investor
if a condition set forth in Section 1.4 hereof is not satisfied or otherwise
waived by the parties hereto; or (iii) by either party if the Merger Agreement
is terminated for any reason whatsoever.

   11. Further Assurances. Subject to the terms and conditions provided
herein, each party hereto agrees to use all commercially reasonable efforts to
take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary, proper or advisable, whether under applicable laws and
regulations or otherwise, in order to consummate and make effective the
transactions contemplated by this Agreement.

                     [The remainder of this page is blank]

                                      E-5
<PAGE>

   IN WITNESS WHEREOF, the parties have hereby executed this Exchange and
Subscription Agreement as of the date set forth above.

                                          INDIVIDUAL INVESTOR

                                          Robert Antin
                                          -------------------------------------
                                          Name (Print or Type)

                                          /s/ Robert Antin
                                          -------------------------------------
                                          Signature

                                          _____________________________________
                                          Signature of Spouse

                                          12401 West Olympic Boulevard
                                          -------------------------------------
                                          (Street Address)

                                          Los Angeles, CA           90064
                                          -------------------------------------
                                          (City and State)           (Zip
                                           Code)

                                          (310) 584-6500
                                          -------------------------------------
                                          Telephone Number

                                          _____________________________________
                                          Social Security Number or
                                          Taxpayer Identification Number

                                      E-6
<PAGE>

                                  ACCEPTANCE

   The foregoing subscription is hereby accepted, subject to the terms and
conditions hereof, as of the date set forth above.

                                          VICAR RECAP, INC.
                                          a Delaware corporation

                                          By: /s/ John Danhakl
                                             ---------------------------------
                                             Name: John Danhakl
                                             Title: President

                                      E-7
<PAGE>

                                   SCHEDULE 1

<TABLE>
<CAPTION>
                                                                     Common
Investor                         Aggregate Value Rollover Shares Exchange Shares
--------                         --------------- --------------- ---------------
<S>                              <C>             <C>             <C>
Robert L. Antin.................   $2,000,000        133,333         133,333
</TABLE>

                                      E-8
<PAGE>

              CONFIDENTIAL INVESTMENT QUALIFICATION QUESTIONNAIRE

                               VICAR RECAP, INC.
                            A Delaware Corporation

                             SPECIAL INSTRUCTIONS

   In order to establish the availability under federal and state securities
laws of an exemption from registration or qualification requirements for the
proposed Exchange, you are required to represent and warrant, and by executing
and delivering this questionnaire will be deemed to have represented and
warranted, that the information stated herein is true, accurate and complete
to the best of your knowledge and belief, and may be relied on by the Company.
Further, by executing and delivering this questionnaire you agree to notify
the Company and supply corrective information promptly if, prior to the
consummation of your exchange of the Rollover Shares for the Shares, any such
information becomes inaccurate or incomplete. Your execution of this
questionnaire does not constitute any indication of your intent to subscribe
for the Shares.

   A subscriber who is a natural person must complete each Question except for
2 and 5.

   A subscriber that is an entity other than a trust must complete each
Question except for 3 and 5.

   A subscriber that is a trust must complete each Question except for 3.

                              GENERAL INFORMATION

   1. All Subscribers.

     a. Name(s) of prospective investor(s): __________________________________

     b. Address: _____________________________________________________________

     c. Telephone Number: (  )________________________________________________

   2. Subscribers That Are Entities.

     a. Type of entity:

          ___ Trust

          ___ Corporation

          ___ Partnership

          Other: ___________________________________________________________

     b. State and date of legal formation: ___________________________________

     c. Nature of Business: __________________________________________________

     d. Was the entity organized for the specific purpose of acquiring the
  Shares in this Exchange?

       Yes ___     No ___

     e. Federal tax identification number: ___________________________________

                                      E-9
<PAGE>

   3. Subscribers Who Are Individuals.

     a. State where registered to vote: ______________________________________

     b. Social Security Number: ______________________________________________
     c. Please state the subscriber's education and degrees earned: __________

<TABLE>
<CAPTION>
     Degree School                                                 Year
     ------ ------                                                 ----
     <C>    <S>                                                    <C>

     ---    ---------------------------------------------------    ---
     ---    ---------------------------------------------------    ---
</TABLE>

     d. Current occupation (if retired, describe last occupation):

     Employer: _______________________________________________________________

     Nature of Business: _____________________________________________________

     Position: _______________________________________________________________

     Business Address: _______________________________________________________

     Telephone Number: (  )___________________________________________________

   4. Accreditation. Does the subscriber satisfy one or more of the following
accredited investor requirements? Contact the Company if none of the following
is applicable.

   Investor is:

[_] A natural person whose net worth (or joint net worth with my spouse) is in
    excess of $1,000,000 as of the date hereof.

[_] A natural person whose income in the prior two years was, and whose income
    in the current year is reasonably expected to be in excess of $200,000 or
    whose joint income with my spouse in the prior two years was, and is
    reasonably expected to be in the current year in excess of $300,000.

[_] A director or executive officer of VICAR Recap, Inc.

[_] A trust with total assets in excess of $5,000,000, not formed for the
    specific purpose of investing in the Shares of VICAR Recap, Inc., whose
    purchases are directed by a sophisticated person, who has such knowledge
    and experience in financial and business matters that he or she is capable
    of evaluating the merits and risks of an investment in the Shares of VICAR
    Recap, Inc.

[_] A "bank", "savings and loan association", or "insurance company" as defined
    in the Securities Act of 1933.

[_] A broker/dealer registered pursuant to Section 15 of the Securities
    Exchange Act of 1934.

[_] An investment company registered under, or a "business development company"
    as defined in Section 2(a)(48) of the Investment Company Act of 1940.

[_] A Small Business Investment Company licensed by the U.S. Small Business
    Administration under the Small Business Investment Act of 1958.

                                     E-10
<PAGE>

[_] A plan established and maintained by a state, its political subdivisions,
    or any agency or instrumentality of a state or its political subdivisions,
    for the benefit of its employees and having total assets in excess of
    $5,000,000.

[_] An "employee benefit plan" as defined in the Employee Retirement Income
    Security Act of 1974 (a "Plan") which has total assets in excess of
    $5,000,000.

[_] A Plan whose investment decisions, including the decision to subscribe for
    the Shares of VICAR Recap, Inc., are made solely by (i) a "plan fiduciary"
    as defined in Section 3(21) of the Employee Retirement Income Security Act
    of 1974, which includes a bank, a savings and loan association, an
    insurance company or a registered investment adviser, or (ii) an
    "accredited investor" as defined under Rule 501(a) of the Securities Act of
    1933.

[_] A private business development company as defined in Section 202(a)(22) of
    the Investment Advisers Act of 1940.

[_] Any organization described in Section 501(c)(3) of the Internal Revenue
    Code, corporation, Massachusetts or similar business Trust, or partnership,
    not formed for the specific purpose of investing in the Shares and having
    total assets in excess of $5,000,000.

[_] Any entity in which all of the equity owners meet one of the above
    descriptions.

    5. Trusts.

    Does the trust meet the following tests:

       a. Has total assets in excess of $5,000,000?

          Yes ___     No ___

       b. Was formed for the purpose of the investment in the Shares in this
    Exchange?

          Yes ___     No ___

       c. Are the purchases by the Trust directed by a sophisticated investor
    who, alone or with his or her subscriber representative, understands the
    merits and risks of the investment in the Shares?

          Yes ___     No ___

                     [The remainder of this page is blank]

                                     E-11
<PAGE>

INDIVIDUAL(S) SIGN HERE:

_____________________________________
(Signature)

_____________________________________
(Print Name)

_____________________________________
(Address)

Social Security Number: _____________

Spouse of Subscriber:

_____________________________________
(Signature)

ORGANIZATIONS SIGN HERE:

_____________________________________
(Print Name of Organization)

By: _________________________________
  (Signature)

_____________________________________
(Print Name and Title)

_____________________________________
(Address)

Federal ID Number: __________________

                                      E-12
<PAGE>

              CONFIDENTIAL PURCHASER REPRESENTATIVE QUESTIONNAIRE

                               VICAR RECAP, INC.
                            A Delaware Corporation

   1. Has the subscriber relied on the advice of a Purchaser Representative in
connection with evaluating the merits and risks of the Purchase of the Shares
in the Exchange?

                                 Yes ___    No ___

   If yes, please give the name, address and telephone number of the person
who is acting as the Purchaser Representative.

   Name: ______________________________________________________________________

   Address: ___________________________________________________________________

   Telephone number: (  ) _____________________________________________________

   2. How often does the subscriber invest in securities?

                     Often     Occasionally     Never

   3. Please list below the subscriber's most recent investments (up to
three):

<TABLE>
<CAPTION>
     Name of                                                      Amount of
     Investment                                                   Investment
     ----------                                                   ----------
     <S>                                                          <C>

                                                                     ----
                                                                     ----
                                                                     ----
</TABLE>

   4. Does the subscriber, either alone or together with its Purchaser
Representative identified above, have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Shares in the Exchange?

                                Yes ___    No ___

   5. Does the subscriber, either alone by reason of its business or financial
experience or together with its Purchaser Representative, have the capacity to
protect its own interests in connection with the contribution of the Rollover
Shares in exchange for the Shares in the Exchange?

                                Yes ___    No ___

   6. Is the subscriber (or the trust beneficiary for which it is the
fiduciary) able to bear the economic risk of the Investment, including a
complete loss of the investment in the Shares?

                                Yes ___    No ___

   7. Does the subscriber have any other investments or contingent liabilities
which could cause the need for sudden cash requirements in excess of cash
readily available to the subscriber?

                                Yes ___    No ___

                                     E-13
<PAGE>

   If Yes, explain:

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

   8. Does the subscriber have a net worth or joint net worth with his or her
spouse which is at least five times as great as the fair market value of the
Shares subscribed for in the Exchange?

                                Yes ___    No ___

   9. If 25% or more of the subscriber's total assets are represented by
investments in the subscriber's own company or real estate, are all
liabilities associated with them included as personal liabilities?

                                Yes ___    No ___

   If No, what is the dollar amount of each such liability?

   10. Has the subscriber ever been subject to bankruptcy, reorganization or
debt restructuring?

                                Yes ___    No ___

   If Yes, provide details:

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

   11. Is the subscriber involved in any litigation which, if an adverse
decision occurred, would adversely affect the subscriber's financial
condition?

                                Yes ___    No ___

   If Yes, provide details:

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

   12. Does the subscriber confirm that neither the subscriber nor the
subscriber's broker nor Purchaser Representative became aware of or was
introduced to the Company by means of any general advertisement?

                                Yes ___    No ___

   13. Does the subscriber confirm that the foregoing statements are complete
and accurate to the best of its knowledge and belief, and that it undertakes
to notify the Company regarding any material change in the information set
forth above prior to the Closing of the Exchange?

                                Yes ___    No ___

                     [The remainder of this page is blank]

                                     E-14
<PAGE>

INDIVIDUAL(S) SIGN HERE:

_____________________________________
(Signature)

_____________________________________
(Print Name)

_____________________________________
(Address)

Social Security Number: _____________

Spouse of Subscriber:

_____________________________________
(Signature)

ORGANIZATIONS SIGN HERE:

_____________________________________
(Print Name of Organization)

By: _________________________________
  (Signature)

_____________________________________
(Print Name and Title)

_____________________________________
(Address)

Federal ID Number: __________________

                                      E-15


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