EXHIBIT 10.42
 
As of November 14, 2001
 
TO:     Purchasers of Units (each a “Lender” and collectively the “Lenders”)
consisting of $3,210,000 principal amount of 15% Senior Secured Notes of World
Wireless Communications, Inc. (the “Company” or the “Borrower”).
 
Re:    Amendment of Agreements
 
Gentlemen:
 
Reference is made to the Loan Agreement between the Lenders and the Company
dated as of May 17, 2001, as amended on August 7, 2001, effective as of May 17,
2001 (the “Agreement”), including the Warrant attached thereto as Exhibit B
(collectively the “Warrants”) Amended and Restated Pledge/Security Agreement
attached thereto as Exhibit C ( the “Security Agreement”).
 
For good and valuable consideration, the adequacy and sufficiency of which is
hereby acknowledged by the Lenders, and as an additional inducement for the
Company to continue its offering of units of its preferred stock and warrants
pursuant to the Confidential Private Placement Memorandum dated January 8, 2002,
the Company and each Lender agree as follows:
 
1.    The Borrower agreed to execute and deliver, and executed and delivered,
Promissory Notes, which were all amended as of November 14, 2001 (except for the
Note evidencing the loan of such date), to Lancer Offshore, Inc., in the
aggregate principal sum of $2,560,000, and to Lancer Partners L.P., in the
aggregate principal sum of $650,000, representing the total loans made by such
parties to the Borrower during the period from May 17, 2001 through November 14,
2001, receipt of which Promissory Notes is hereby acknowledged, as set forth
below:
 
Name of Lender

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Principal Amount of Loan

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Date of Loan

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Lancer Offshore, Inc.
    
$
1,125,000
  
May 17, 2001
Lancer Partners L.P.
    
$
350,000
  
August 7, 2001
Lancer Partners L.P.
    
$
100,000
  
September 6, 2001
Lancer Partners L.P.
    
$
175,000
  
September 18, 2001
Lancer Partners L.P.
    
$
25,000
  
October 3, 2001
Lancer Offshore, Inc.
    
$
85,000
  
October 3, 2001
Lancer Offshore, Inc.
    
$
175,000
  
October 9, 2001
Lancer Offshore, Inc.
    
$
175,000
  
October 29, 2001
Lancer Offshore, Inc.
    
$
1,000,000
  
November 14, 2001

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2.    The Borrower agreed to execute and deliver, and executed and delivered, to
Lancer Offshore, Inc. and Lancer Partners L.P. warrants to purchase 1,280,000
and 325,000 shares of the Borrower’s Common Stock, as set forth on Schedule 1
attached hereto.
 
3.    Section 1.1(a) of the Loan Agreement shall be amended to read as follows
effective as of November 14, 2001:
 
“ (a)  Simultaneously with the execution and the delivery of this Agreement,
Lancer Offshore, Inc. agrees to lend to Borrower the aggregate sum of
$2,250,000, of which (i) the sum of $1,125,000 shall be paid to Borrower upon
the execution and the delivery of this Agreement and (ii) the sum of $1,125,000
shall be paid to Borrower on July 15, 2001, provided that Borrower has raised
the sum of $2,000,000 in equity from persons other than Michael Lauer and his
affiliates, including, without limitation, Lancer Offshore Inc., Lancer
Partners, L.P., and The Orbiter Fund Ltd.(such loan, together with any other
amounts loaned pursuant to this Agreement by any Lender from time to time,
including that specified in Section 1.1 (b) hereof, with the consent of the
parties hereto, up to a total sum of $5,000,000, shall be referred to
collectively as the “Loan”). The Loan shall be used solely by Borrower in the
operation of its business as determined by the President of Borrower, subject to
supervision thereof by Board of Directors of Borrower. As of November 14, 2001,
Lancer Offshore, Inc. loaned the Borrower the principal amount of $2,560,000.
The Loan shall be repaid on February 28, 2002 unless it is mandatorily converted
into shares of Borrower’s Common Stock before that date as provided in Section
1.5 hereof. “
 
4.    Section 1.1(b) of the Loan Agreement shall be amended to read as follows
effective as of November 14, 2001:
 
“ (b)  On August 7, 2001 Lancer Partners L.P. agrees to lend to Borrower the
aggregate sum of $875,000, of which (i) the sum of $350,000 shall be paid to
Borrower on August 7, 2001 and (ii) the sums of $275,000 shall be paid to
Borrower on or about September 15, 2001, (but no later than September 20, 2001),
and $250,000 on or about October 15, 2001 (but no later than October 20, 2001),
or such other amount mutually agreed to by the parties hereto, provided that
Borrower has raised the sum of $1,500,000 in equity from persons other than
Michael Lauer and his affiliates, including, without limitation, Lancer Offshore
Inc., Lancer Partners, L.P., and The Orbiter Fund Ltd, on or before October 15,
2001 The Loan shall be used solely by Borrower in the operation of its business
as determined by the President of Borrower, subject to supervision thereof by
the Board of Directors of Borrower. The initial $350,000 principal amount of the
Loan shall be repaid on February 28, 2002, and the subsequent tranches of
$275,000 and $250,000 of the Loan if and when made shall be repaid on February
28, 2002, unless such amounts are mandatorily converted into shares of
Borrower’s Common Stock before that date as provided in Section 1.5 hereof. As
of November 14, 2001, Lancer Partners L.P. loaned the Borrower the principal
amount of $650,000.”
 
5.    Section 1.5 of the Loan Agreement shall be amended to read as follows,
effective as of November 14, 2001:
 
“ (a)  The Loan shall be mandatorily converted into shares of the Common Stock
of Borrower at the rate of one share per each $0.05 principal amount of debt,
including interest (subject

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to adjustment for stock dividends, stock splits and reverse stock splits, if
any) immediately upon (i) the approval of such conversion by Borrower’s
shareholders at a meeting of shareholders held for such purpose (among other
purposes) and (ii) Borrower’s receipt of $3,210,000 in equity from persons other
than Michael Lauer and his affiliates, Lancer Offshore, Inc., Lancer Partner
L.P. or the Orbiter Fund Ltd. on or before February 28, 2002.”
 
6.    The Warrants shall be amended as set forth in Schedule 2-A and 2-B
attached hereto.
 
7.    Section 5.6(a) of the Security Agreement shall be amended to read as
follows, effective as of November 14, 2001:
 
“Section 5.6    Additional Remedies upon Default.    Notwithstanding anything
contained in this Agreement to the contrary, if Pledgor defaults in the payment
of principal or interest on any Note at the maturity date of any Note, in
addition to any interest rate penalty provided in the Note:
 
(a)  Pledgor shall transfer to Pledgee 1,605,000 shares of the common stock of
Pledgor, subject to applicable securities laws restrictions, for each 30-day
period during which such default shall be in existence (the “Default Shares”),
commencing with the month in which such default first occurs and continuing
until such default is cured or otherwise satisfied, but in no event shall
Pledgor be required to issue more than 12,500,000 shares pursuant to this
Section 5.6 (a). The representations and warranties of Pledgee set forth in
Section 3 of Pledgee’s Subscription Agreement shall be true and correct with
respect to such Default Shares on the date of each such transfer; and”
 
8.    Section 7.5(a) of the Security Agreement shall be amended to read as
follows, effective as of November 14, 2001:
 
“Section 7.5    Expenses.
 
(a)  Pledgor shall not directly or indirectly incur a monthly burn rate greater
than $250,000 during September, 2001, and $375,000, commencing as of October 1,
2001, and continuing during each month thereafter until the Obligations are
satisfied, which shall mean that sum of the excess of (i) Pledgor’s expenditures
for operations (including, without limitation, compensation and other payroll
expenses, inventory, supplies and outside services, including accounting, legal
and other advisory fees and expenses) less (ii) the amount of Pledgor’s revenues
received, in each case determined on a cash basis, shall not exceed (A) the sum
of $250,000 during September, 2001 and (B) the sum of $375,000 commencing as of
October 1, 2001 and thereafter as provided herein.”
 
In consideration of the foregoing, each Lender unconditionally acknowledges that
the Company is not in default under the Loan Agreement, any of the Notes or any
other agreement which is a part of the Loan Agreement.
 
Except as amended as set forth herein, the Agreement, including, without
limitation, the Security Agreement shall continue in full force and effect in
accordance with its terms.

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If this letter accurately sets forth our understanding, please sign your name
below and return your signed original to us immediately.
 

 
Ve
ry truly yours,

 
 

       
WORLD WIRELESS COMMUNICATIONS, INC.
               

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David D. Singer, President

 
LANCER OFFSHORE, INC.
     
LANCER PARTNERS L.P.
   

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Michael Lauer, Manager
         
Michael Lauer, Manager

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