Document:

NEITHER
        THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES
        HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
        SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
        REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
        ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
        EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
        AN
        AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
        SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
        TO
        SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
        COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
        SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
        BY SUCH SECURITIES.

       

       

      U.S.
        WIRELESS DATA, INC.

       

      WARRANT

       

      
        
          	Warrant No. [ ]	
                  Date
                    of Original Issuance: _________,
                    2006

                

        

      

       

      U.S.
        Wireless Data, Inc.,
        a
        Delaware corporation (the "Company"),
        hereby
        certifies that, for value received, ______________ or its registered assigns
        (the "Holder"),
        is
        entitled to purchase from the Company up to a total of [ ] shares of common
        stock, $.01 par value per share (the "Common
        Stock"),
        of the
        Company (each such share, a "Warrant
        Share"
        and all
        such shares, the "Warrant
        Shares")
        at an
        exercise price equal to $2.00 per share (as adjusted from time to time as
        provided in Section 9, the "Exercise
        Price"),
        at any
        time and from time to time from and after the date hereof and through and
        including ___________, 2008 (the "Expiration
        Date"),
        and
        subject to the following terms and conditions:

       

      1.  Definitions.
        In
        addition to the terms defined elsewhere in this Warrant, capitalized terms
        that
        are not otherwise defined herein shall have the meanings given to such terms
        in
        the Subscription Agreement of even date herewith to which the Company and
        the
        original Holder are parties (the "Subscription
        Agreement").

       

      2.  Registration
        of Warrant.
        The
        Company shall register this Warrant, upon records to be maintained by the
        Company for that purpose (the "Warrant
        Register"),
        in the
        name of the record Holder hereof from time to time. The Company may deem
        and
        treat the registered Holder of this Warrant as the absolute owner hereof
        for the
        purpose of any exercise hereof or any distribution to the Holder, and for
        all
        other purposes, absent actual notice to the contrary.

       

      3.  Registration
        of Transfers.
        The
        Company shall register the transfer of any portion of this Warrant in the
        Warrant Register, upon surrender of this Warrant, with the Form of Assignment
        attached hereto duly completed and signed, to the Company at its address
        specified herein. Upon any such registration or transfer, a new Warrant to
        purchase Common Stock, in substantially the form of this Warrant (any such
        new
        Warrant, a "New
        Warrant"),
        evidencing the portion of this Warrant so transferred shall be issued to
        the
        transferee and a New Warrant evidencing the remaining portion of this Warrant
        not so transferred, if any, shall be issued to the transferring Holder. The
        acceptance of the New Warrant by the transferee thereof shall be deemed the
        acceptance by such transferee of all of the rights and obligations of a holder
        of a Warrant. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.  Exercise
        and Duration of Warrants.
        This
        Warrant shall be exercisable by the registered Holder at any time and from
        time
        to time on or after the date hereof to and including the Expiration Date.
        At
        5:30 p.m., New York City time on the Expiration Date, the portion of this
        Warrant not exercised prior thereto shall be and become void and of no
        value.

       

      5.  Delivery
        of Warrant Shares.

       

      (a)  To
        effect
        exercises hereunder, the Holder shall not be required to physically surrender
        this Warrant unless the aggregate Warrant Shares represented by this Warrant
        is
        being exercised. Upon delivery of the attached Exercise Notice to the Company
        (with the attached Warrant Shares Exercise Log) at its address for notice
        set
        forth herein and upon payment of the Exercise Price multiplied by the number
        of
        Warrant Shares that the Holder intends to purchase hereunder, the Company
        shall
        promptly (but in no event later than three Trading Days after the Date of
        Exercise (as defined herein)) issue and deliver to the Holder, a certificate
        for
        the Warrant Shares issuable upon such exercise, which, unless otherwise required
        by the Subscription Agreement, shall be free of restrictive legends. The
        Company
        shall, upon request of the Holder and subsequent to the date on which a
        registration statement covering the resale of the Warrant Shares has been
        declared effective by the Securities and Exchange Commission, use commercially
        reasonable efforts to deliver Warrant Shares hereunder electronically through
        the Depository Trust Corporation or another established clearing corporation
        performing similar functions, if available, provided, that, the Company may,
        but
        will not be required to change its transfer agent if its current transfer
        agent
        cannot deliver Warrant Shares electronically through the Depository Trust
        Corporation. A "Date
        of Exercise"
        means
        the date on which the Holder shall have delivered to the Company: (i) the
        Exercise Notice (with the Warrant Exercise Log attached to it), appropriately
        completed and duly signed and (ii) if such Holder is not utilizing the cashless
        exercise provisions set forth in this Warrant, payment of the Exercise Price
        for
        the number of Warrant Shares so indicated by the Holder to be
        purchased.

       

      (b)  The
        Company's obligations to issue and deliver Warrant Shares in accordance with
        the
        terms hereof are absolute and unconditional, irrespective of any action or
        inaction by the Holder to enforce the same, any waiver or consent with respect
        to any provision hereof, the recovery of any judgment against any Person
        or any
        action to enforce the same, or any setoff, counterclaim, recoupment, limitation
        or termination, or any breach or alleged breach by the Holder or any other
        Person of any obligation to the Company or any violation or alleged violation
        of
        law by the Holder or any other Person, and irrespective of any other
        circumstance which might otherwise limit such obligation of the Company to
        the
        Holder in connection with the issuance of Warrant Shares. Nothing herein
        shall
        limit a Holder's right to pursue any other remedies available to it hereunder,
        at law or in equity including, without limitation, a decree of specific
        performance and/or injunctive relief with respect to the Company's failure
        to
        timely deliver certificates representing shares of Common Stock upon exercise
        of
        the Warrant as required pursuant to the terms hereof.

       

      
        
          
          

        

        
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      6.  Charges,
        Taxes and Expenses.
        Issuance and delivery of certificates for shares of Common Stock upon exercise
        of this Warrant shall be made without charge to the Holder for any issue
        or
        transfer tax, withholding tax, transfer agent fee or other incidental tax
        or
        expense in respect of the issuance of such certificates, all of which taxes
        and
        expenses shall be paid by the Company; provided, however, that the Company
        shall
        not be required to pay any tax which may be payable in respect of any transfer
        involved in the registration of any certificates for Warrant Shares or Warrants
        in a name other than that of the Holder. The Holder shall be responsible
        for all
        other tax liability that may arise as a result of holding or transferring
        this
        Warrant or receiving Warrant Shares upon exercise hereof.

       

      7.  Replacement
        of Warrant.
        If this
        Warrant is mutilated, lost, stolen or destroyed, the Company shall issue
        or
        cause to be issued in exchange and substitution for and upon cancellation
        hereof, or in lieu of and substitution for this Warrant, a New Warrant, but
        only
        upon receipt of evidence reasonably satisfactory to the Company of such loss,
        theft or destruction and customary and reasonable indemnity (which shall
        not
        include a surety bond), if requested. Applicants for a New Warrant under
        such
        circumstances shall also comply with such other reasonable regulations and
        procedures and pay such other reasonable third-party costs as the Company
        may
        prescribe. If a New Warrant is requested as a result of a mutilation of this
        Warrant, then the Holder shall deliver such mutilated Warrant to the Company
        as
        a condition precedent to the Company’s obligation to issue the New
        Warrant.

       

      8.  Reservation
        of Warrant Shares.
        The
        Company covenants that it will at all times reserve and keep available out
        of
        the aggregate of its authorized but unissued and otherwise unreserved Common
        Stock, solely for the purpose of enabling it to issue Warrant Shares upon
        exercise of this Warrant as herein provided, the number of Warrant Shares
        which
        are then issuable and deliverable upon the exercise of this entire Warrant,
        free
        from preemptive rights or any other contingent purchase rights of persons
        other
        than the Holder (taking into account the adjustments and restrictions of
        Section
        9).
        The
        Company covenants that all Warrant Shares so issuable and deliverable shall,
        upon issuance and the payment of the applicable Exercise Price in accordance
        with the terms hereof, be duly and validly authorized, issued and fully paid
        and
        nonassessable.

       

      9.  Certain
        Adjustments.
        The
        Exercise Price and number of Warrant Shares issuable upon exercise of this
        Warrant are subject to adjustment from time to time as set forth in this
        Section
        9.

       

      (a)  Stock
        Dividends and Splits.
        If the
        Company, at any time while this Warrant is outstanding, (i) pays a stock
        dividend on its Common Stock or otherwise makes a distribution on any class
        of
        capital stock that is payable in shares of Common Stock, (ii) subdivides
        outstanding shares of Common Stock into a larger number of shares, or (iii)
        combines outstanding shares of Common Stock into a smaller number of shares,
        then in each such case the Exercise Price shall be multiplied by a fraction
        of
        which the numerator shall be the number of shares of Common Stock outstanding
        immediately before such event and of which the denominator
        shall be the number of shares of Common Stock outstanding immediately after
        such
        event. Any adjustment made pursuant to clause (i) of this paragraph shall
        becomeeffective immediately after the record date for the determination of
        stockholders entitled to receive such dividend or distribution, and any
        adjustment pursuant to clause (ii) or (iii) of this paragraph shall become
        effective immediately after the effective date of such subdivision or
        combination. If any event requiring an adjustment under this paragraph occurs
        during the period that an Exercise Price is calculated hereunder, then the
        calculation of such Exercise Price shall be adjusted appropriately to reflect
        such event.

       

      
        
          
          

        

        
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      (b)  Fundamental
        Transactions.
        If, at
        any time while this Warrant is outstanding, (1) the Company effects any merger
        or consolidation of the Company with or into another Person, (2) the Company
        effects any sale of all or substantially all of its assets in one or a series
        of
        related transactions, (3) any tender offer or exchange offer (whether by
        the
        Company or another Person) is completed pursuant to which holders of Common
        Stock are permitted to tender or exchange their shares for other securities,
        cash or property, or (4) the Company effects any reclassification of the
        Common
        Stock or any compulsory share exchange pursuant to which the Common Stock
        is
        effectively converted into or exchanged for other securities, cash or property
        (in any such case, a "Fundamental
        Transaction"),
        then
        the Holder shall have the right thereafter to receive, upon exercise of this
        Warrant, the same amount and kind of securities, cash or property as it would
        have been entitled to receive upon the occurrence of such Fundamental
        Transaction if it had been, immediately prior to such Fundamental Transaction,
        the holder of the number of Warrant Shares then issuable upon exercise in
        full
        of this Warrant (the "Alternate
        Consideration").
        For
        purposes of any such exercise, the determination of the Exercise Price shall
        be
        appropriately adjusted to apply to such Alternate Consideration based on
        the
        amount of Alternate Consideration issuable in respect of one share of Common
        Stock in such Fundamental Transaction, and the Company shall apportion the
        Exercise Price among the Alternate Consideration in a reasonable manner
        reflecting the relative value of any different components of the Alternate
        Consideration. If holders of Common Stock are given any choice as to the
        securities, cash or property to be received in a Fundamental Transaction,
        then
        the Holder shall be given the same choice as to the Alternate Consideration
        it
        receives upon any exercise of this Warrant following such Fundamental
        Transaction. At the Holder's option and request, any successor to the Company
        or
        surviving entity in such Fundamental Transaction shall, either (1) issue
        to the
        Holder a new warrant substantially in the form of this Warrant and consistent
        with the foregoing provisions and evidencing the Holder's right to purchase
        the
        Alternate Consideration for the aggregate Exercise Price upon exercise thereof,
        or (2) purchase the Warrant from the Holder for a purchase price, payable
        in
        cash within five Trading Days after such request (or, if later, on the effective
        date of the Fundamental Transaction), equal to the Black Scholes value of
        the
        remaining unexercised portion of this Warrant on the date of such request.
        The
        terms of any agreement pursuant to which a Fundamental Transaction is effected
        shall include terms requiring any such successor or surviving entity to comply
        with the provisions of this paragraph (b) and insuring that the Warrant (or
        any
        such replacement security) will be similarly adjusted upon any subsequent
        transaction analogous to a Fundamental Transaction.

       

      
        
          
          

        

        
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      (c)  Number
        of Warrant Shares.
        Simultaneously with any adjustment to the Exercise Price pursuant to paragraph
        (a) of this Section, the number of Warrant Shares that may be purchased upon
        exercise of this Warrant shall be increased or decreased proportionately,
        so
        that after such adjustment the aggregate Exercise Price payable hereunder
        for
        the adjusted number of Warrant Shares shall be the same as the aggregate
        Exercise Price in effect immediately prior to such adjustment.

       

      (d)  Calculations.
        All
        calculations under this Section
        9
        shall be
        made to the nearest cent or the nearest 1/100th
        of a
        share, as applicable. The number of shares of Common Stock outstanding at
        any
        given time shall not include shares owned or held by or for the account of
        the
        Company, and the disposition of any such shares shall be considered an issue
        or
        sale of Common Stock.

       

      (e)  Notice
        of Adjustments.
        Upon
        the occurrence of each adjustment pursuant to this Section
        9,
        the
        Company at its expense will promptly compute such adjustment in accordance
        with
        the terms of this Warrant and prepare a certificate setting forth such
        adjustment, including a statement of the adjusted Exercise Price and adjusted
        number or type of Warrant Shares or other securities issuable upon exercise
        of
        this Warrant (as applicable), describing the transactions giving rise to
        such
        adjustments and showing in detail the facts upon which such adjustment is
        based.
        Upon written request, the Company will promptly deliver a copy of each such
        certificate to the Holder and to the Company's Transfer Agent.

       

      (f)  Notice
        of Corporate Events.
        If the
        Company (i) declares a dividend or any other distribution of cash, securities
        or
        other property in respect of its Common Stock, including without limitation
        any
        granting of rights or warrants to subscribe for or purchase any capital stock
        of
        the Company or any Subsidiary, (ii) authorizes or approves, enters into any
        agreement contemplating or solicits stockholder approval for any Fundamental
        Transaction or (iii) authorizes the voluntary dissolution, liquidation or
        winding up of the affairs of the Company, then the Company shall deliver
        to the
        Holder a notice describing the material terms and conditions of such
        transaction, at least 10 calendar days prior to the applicable record or
        effective date on which a Person would need to hold Common Stock in order
        to
        participate in or vote with respect to such transaction, and the Company
        will
        take all steps reasonably necessary in order to insure that the Holder is
        given
        the practical opportunity to exercise this Warrant prior to such time so
        as to
        participate in or vote with respect to such transaction; provided, however,
        that
        the failure to deliver such notice or any defect therein shall not affect
        the
        validity of the corporate action required to be described in such
        notice.

       

      10.  Payment
        of Exercise Price.
        The
        Holder may pay the Exercise Price in one of the following manners:

       

                                   (a)  Cash
        Exercise.
        The
        Holder may deliver immediately available funds; or

                                
        

                                   (b)  Cashless
        Exercise.
        The
        Holder may notify the Company in an Exercise Notice of its election to utilize
        cashless exercise, in which event the Company shall issue to the Holder the
        number of Warrant Shares determined as follows:

       

      X
        = Y
        [(A-B)/A]

       

      
        
          
          

        

        
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      where:

       

      X
        = the
        number of Warrant Shares to be issued to the Holder.

       

      Y
        = the
        number of Warrant Shares with respect to which this Warrant is being
        exercised.

       

      A
        = the
        average of the closing prices for the five Trading Days immediately prior
        to
        (but not including) the Exercise Date.

       

      B
        = the
        Exercise Price.

       

      For
        purposes of Rule 144 promulgated under the Securities Act, it is intended,
        understood and acknowledged that the Warrant Shares issued in a cashless
        exercise transaction shall be deemed to have been acquired by the Holder,
        and
        the holding period for the Warrant Shares shall be deemed to have commenced,
        on
        the date this Warrant was originally issued.

       

      11.  No
        Rights as Stockholder.
        Until
        the exercise of this Warrant, the Holder shall not have or exercise any rights
        by virtue hereof as a stockholder of the Company.

       

      12.  No
        Fractional Shares.
        No
        fractional shares of Warrant Shares will be issued in connection with any
        exercise of this Warrant. In lieu of any fractional shares which would,
        otherwise be issuable, the Company shall pay cash equal to the product of
        such
        fraction multiplied by the closing price of one Warrant Share as reported
        by the
        applicable Trading Market on the date of exercise.

       

      14.      
        Notices.
        Any and
        all notices or other communications or deliveries hereunder (including, without
        limitation, any Exercise Notice) shall be in writing and shall be deemed
        given
        and effective on the earliest of (i) the date of transmission, if such notice
        or
        communication is delivered via facsimile at the facsimile number specified
        in
        this Section prior to 5:30 p.m. (New York City time) on a Trading Day, (ii)
        the
        next Trading Day after the date of transmission, if such notice or communication
        is delivered via facsimile at the facsimile number specified in this Section
        on
        a day that is not a Trading Day or later than 5:30 p.m. (New York City time)
        on
        any Trading Day, (iii) the Trading Day following the date of mailing, if
        sent by
        nationally recognized overnight courier service, or (iv) upon actual receipt
        by
        the party to whom such notice is required to be given. The addresses for
        such
        communications shall be: (i) if to the Company, to U.S. Wireless Data, Inc.,
        2121 Avenue of the Stars, Suite 1650, Los Angeles, CA 90067 Attention:
        President, Facsimile No.: 310-277-2741 or such other address as the Company
        shall so notify the Holder, or (ii) if to the Holder, to the address or
        facsimile number appearing on the Warrant Register or such other address
        or
        facsimile number as the Holder may provide to the Company in accordance with
        this Section.

       

      15.  Warrant
        Agent.
        The
        Company shall serve as warrant agent under this Warrant. Upon 10 days' notice
        to
        the Holder, the Company may appoint a new warrant agent. Any corporation
        into
        which the Company or any new warrant agent may be merged or any corporation
        resulting from any consolidation to which the Company or any new warrant
        agent
        shall be a party or any corporation to which the Company or any new warrant
        agent transfers substantially all of its corporate trust or shareholders
        services business shall be a successor warrant
        agent under this Warrant without any further act. Any such successor warrant
        agent shall promptly cause notice of its succession as warrant agent to be
        mailed (by first class mail, postage prepaid) to the Holder at the Holder's
        last
        address as shown on the Warrant Register.

       

      
        
          
          

        

        
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      16.  Miscellaneous.

       

      (a)  This
        Warrant shall be binding on and inure to the benefit of the parties hereto
        and
        their respective successors and assigns. Subject to the preceding sentence,
        nothing in this Warrant shall be construed to give to any Person other than
        the
        Company and the Holder any legal or equitable right, remedy or cause of action
        under this Warrant. This Warrant may be amended only in writing signed by
        the
        Company and the Holder and their successors and assigns.

       

      (b)  All
        questions concerning the construction, validity, enforcement and interpretation
        of this Warrant shall be governed by and construed and enforced in accordance
        with the internal laws of the State of New York (except with respect to matters
        governed by the corporate laws of the State of Delaware), without regard
        to the
        principles of conflicts of law thereof. Each party agrees that all legal
        proceedings concerning the interpretations, enforcement and defense of this
        Warrant and the transactions herein contemplated (“Proceedings”)
        (whether brought against a party hereto or its respective Affiliates, employees
        or agents) may be commenced non-exclusively in the state and federal courts
        sitting in the City of New York, Borough of Manhattan (the “New
        York Courts”).
        Each
        party hereto hereby irrevocably submits to the non-exclusive jurisdiction
        of the
        New York Courts for the adjudication of any dispute hereunder or in connection
        herewith or with any transaction contemplated hereby or discussed herein,
        and
        hereby irrevocably waives, and agrees not to assert in any Proceeding, any
        claim
        that it is not personally subject to the jurisdiction of any New York Court,
        or
        that such Proceeding has been commenced in an improper or inconvenient forum.
        Each party hereto hereby irrevocably waives personal service of process and
        consents to process being served in any such Proceeding by mailing a copy
        thereof via registered or certified mail or overnight delivery (with evidence
        of
        delivery) to such party at the address in effect for notices to it under
        this
        Warrant and agrees that such service shall constitute good and sufficient
        service of process and notice thereof. Nothing contained herein shall be
        deemed
        to limit in any way any right to serve process in any manner permitted by
        law.
        Each party hereto hereby irrevocably waives, to the fullest extent permitted
        by
        applicable law, any and all right to trial by jury in any legal proceeding
        arising out of or relating to this Warrant or the transactions contemplated
        hereby. If either party shall commence a Proceeding to enforce any provisions
        of
        this Warrant, then the prevailing party in such Proceeding shall be reimbursed
        by the other party for its attorney’s fees and other costs and expenses incurred
        with the investigation, preparation and prosecution of such
        Proceeding.

       

      (c)  The
        headings herein are for convenience only, do not constitute a part of this
        Warrant and shall not be deemed to limit or affect any of the provisions
        hereof.

       

      (d)  In
        case
        any one or more of the provisions of this Warrant shall be invalid or
        unenforceable in any respect, the validity and enforceability of the remaining
        terms and provisions of this Warrant shall not in any way be affected or
        impaired thereby and the parties will attempt in good faith to agree upon
        a
        valid and enforceable provision which shall be a commercially
        reasonable substitute therefor, and upon so agreeing, shall incorporate such
        substitute provision in this Warrant.

       

      
        
          
          

        

        
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      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK,

      SIGNATURE
        PAGE FOLLOWS]

       

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the Company has caused this Warrant to be duly executed
        by its
        authorized officer as of the date first indicated above.

       

      
        	 	 	 
	 	U.S.
                WIRELESS DATA, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	Name: 

      

       

       

      
        
          
          

        

        
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      U.S.
        WIRELESS DATA, INC.

      WARRANT
        ORIGINALLY ISSUED [_____ ], 2006

      WARRANT
        NO. [ ]

       

       

      EXERCISE
        NOTICE

       

      To
        U.S.
        Wireless Data, Inc.:

       

      The
        undersigned hereby irrevocably elects to purchase _____________ shares of
        Common
        Stock pursuant to the above captioned Warrant, and, if such Holder is not
        utilizing the cashless exercise provisions set forth in the Warrant, encloses
        herewith $________ in cash, certified or official bank check or checks or
        other
        immediately available funds, which sum represents the aggregate Exercise
        Price
        (as defined in the Warrant) for the number of shares of Common Stock to which
        this Exercise Notice relates, together with any applicable taxes payable
        by the
        undersigned pursuant to the Warrant.

       

      By
        its
        delivery of this Exercise Notice, the undersigned represents and warrants
        to the
        Company that in giving effect to the exercise evidenced hereby the Holder
        will
        not beneficially own in excess of the number of shares of Common Stock
        (determined in accordance with Section 13(d) of the Securities Exchange Act
        of
        1934) permitted to be owned under Section 10 of this Warrant to which this
        notice relates.

       

      The
        undersigned requests that certificates for the shares of Common Stock issuable
        upon this exercise be issued in the name of

       

      PLEASE
        INSERT SOCIAL SECURITY OR

      TAX
        IDENTIFICATION NUMBER

       

      (Please
        print name and address)

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Warrant
        Shares Exercise Log

       

      
        	
                Date

              	
                Number
                  of Warrant Shares Available to be Exercised

              	
                Number
                  of Warrant Shares Exercised

              	
                Number
                  of Warrant Shares Remaining to be Exercised

              
	 	
                 

                 

                 

                 

                 

                 

                 

                 

                 

              	 	 

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      U.S.
        WIRELESS DATA, INC.

       

      WARRANT
        ORIGINALLY ISSUED [_______ ], 2006

      WARRANT
        NO. [ ]

       

      FORM
        OF
        ASSIGNMENT

       

      [To
        be
        completed and signed only upon transfer of Warrant]

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers unto
        ________________________________ the right represented by the above-captioned
        Warrant to purchase ____________ shares of Common Stock to which such Warrant
        relates and appoints ________________ attorney to transfer said right on
        the
        books of the Company with full power of substitution in the
        premises.

       

      Dated: _______________,
        ____

       

       

      _______________________________________

      (Signature
        must conform in all respects to name of 

      holder
        as
        specified on the face of the Warrant)

       

       

      _______________________________________

      Address
        of Transferee

       

       

      _______________________________________

       

      _______________________________________

       

      In
        the
        presence of:

       

       

      __________________________SUBSCRIPTION
      AGREEMENT

    

    This
      Subscription Agreement dated as of __________, 2006 (the “Agreement”)
      is
      entered into by and among U.S. Wireless Data, Inc., a Delaware corporation
      (the
“Company”),
      and
      the individuals and entities listed on Exhibit A
      hereto
      (the “Purchasers”).

    

    BACKGROUND

     

    WHEREAS,
      the Company is offering in a private placement to “accredited investors” (as
      such term in defined in Regulation D (“Regulation
      D”)
      promulgated under the Securities Act of 1933, as amended (the “Securities
      Act”))
      up to
      $2,000,000 (the “Maximum
      Amount”)
      of
      units consisting of (i) one share of common stock, $0.01 par value per share,
      of
      the Company (the “Common
      Stock”)
      and
      (ii) one Warrant (the “Warrant”)
      to
      purchase, at an exercise price of $2.00 per share, one full share of Common
      Stock (each unit is being sold at an offering price of $1.00 per unit (the
      “Units”))
      (the
“Offering”);
      

    

    WHEREAS,
      the Purchaser desires to purchase that number of Units set forth on the
      signature page hereof on the terms and conditions hereinafter set forth and
      on
      the terms and conditions set forth herein;

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual representations
      and
      covenants hereinafter set forth, the parties hereto agree as
      follows:

     

    1. 
Authorization
      and Sale of Units.

    

    1.1    Authorization.
      The
      Company has, or before the Initial Closing (as defined in Section 2) will
      have, duly authorized the sale and issuance, pursuant to the terms of this
      Agreement, of (a) up to 2,000,000 shares of its Common Stock; and (b) Warrants
      to purchase up to 2,000,000 shares of Common Stock in the form attached hereto
      at Exhibit B.
      

    

    1.2    Sale
      of Units; Subscription for Units.
      Subject
      to the terms and conditions of this Agreement, at the applicable Closing, the
      Company will sell and issue to each of the Purchasers, and each of the
      Purchasers will purchase the number of Units set forth opposite such Purchaser’s
      name on Exhibit A
      for the
      purchase price of $1.00 per Unit. The shares of Common Stock and the Warrants
      being sold under this Agreement are sometimes hereinafter collectively referred
      to as the “Securities.”
The
      Company’s agreement with each of the Purchasers is a separate agreement, and the
      sale of Units to each of the Purchasers is a separate sale.

     

    To
      subscribe for Units, this Agreement must be properly completed, executed and
      the
      purchase price delivered to American Stock Transfer and Trust Company, 59 Maiden
      Lane, New York, New York 10038, Attention: Henry Reinhold, accompanied by a
      check payable to “American Stock Transfer and Trust Company, Escrow Agent for
      U.S. Wireless Data, Inc.” (the “Escrow Agent”). A Purchaser desiring to deliver
      the purchase price for the Units in the form of wire transfer shall wire to
      the
      Escrow Agent at: JP Morgan Chase, 55 Water Street, New York, New York 10041,
      ABA# 021 000 021, Account #[_______],
      Attention: Henry Reinhold.
      If the
      purchase price is paid by wire transfer, the Purchaser shall (i) include the
      Purchaser's name in the wire transfer instructions; and (ii) request from the
      bank or other financial institution that is originating the transfer the federal
      wire number with respect to the and retain that number for future reference.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.3    Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Units for working capital
      and
      general corporate purposes.

    

    2. 
The
      Closing.
      The
      initial closing shall occur on the sale by the Company of at least 250,000
      Units
      and under this Agreement shall take place at such time and place as the Company
      may designate (the “Initial Closing,”
and
      the date on which the Initial Closing occurs, the “Initial
      Closing Date”).
      Following the Initial Closing Date, and up to March 17, 2006, the Company may
      hold additional closings (each, with the Initial Closing, a “Closing”,
      and
      each such date, with the Initial Closing Date, a “Closing
      Date”)
      at
      such places and times as designated by the Company until the earlier of (i)
      such
      time as the Company has sold up to the Maximum Amount or (ii) March 17, 2006.
      There is no assurance that the Maximum Amount will be sold. There is no
      assurance that any additional Units will be sold.

    

    Promptly
      following the applicable Closing, the Company shall deliver to each of the
      Purchasers a certificate for the number of shares of Common Stock and warrant
      agreements for the number Warrants being purchased by such Purchaser, registered
      in the name of such Purchaser, against payment to the Company of the purchase
      price therefor by check or wire transfer, as specified in Exhibit
      A

    

    The
      Purchaser hereby authorizes and directs the Company to deliver the Securities
      to
      be issued to the Purchaser pursuant to this Agreement directly to the
      residential or business address indicated on the signature page
      hereto.

    

    3. 
Representations
      of the Purchasers.
      Each of
      the Purchasers severally represents and warrants to the Company as
      follows:

    

    (a)    The
      Purchaser has received and carefully reviewed such information and documentation
      relating to the Company that the Purchaser has requested, including without
      limitation, the Company’s filings with the United States Securities and Exchange
      Commission (the “Commission”). 

    

    (b)    The
      Purchaser has had a reasonable opportunity to ask questions of and receive
      answers from the Company concerning the Company and the Offering, and all such
      questions, if any, have been answered to the full satisfaction of the
      Purchaser.

     

    (c)    The
      Purchaser understands that the Company has determined that the exemption from
      the registration provisions of the Securities Act provided by Regulation D
      is
      applicable to the offer and sale of the Securities, based, in part, upon the
      representations, warranties and agreements made by the Purchaser
      herein.

    

    (d)    Except
      as
      set forth herein, no representations or warranties have been made to the
      Purchaser by the Company or any agent, employee or affiliate of the Company
      and
      in entering into this transaction, the Purchaser is not relying upon any
      information other than the results of independent investigation by the
      Purchaser.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      (e)    The
        Purchaser has full power and authority to execute and deliver this Agreement
        and
        to perform the obligations of the Purchaser hereunder and this Agreement
        is a
        legally binding obligation of the Purchaser in accordance with its
        terms.

    

     

    (f)    Regulation
      D

     

           (i)    The
      Purchaser understands and acknowledges that: (A) the Securities acquired
      pursuant to this Agreement have not been registered under the Securities Act
      and
      are being sold in reliance upon an exemption from registration afforded by
      Regulation D; and that such Securities have not been registered with any
      state securities commission or authority; (B) pursuant to the requirements
      of
      Regulation D, the Securities may not be transferred, sold or otherwise
      exchanged unless in compliance with the provisions of Regulation D and/or
      pursuant to registration under the Securities Act, or pursuant to an available
      exemption thereunder; and (C) other than as set forth in Section 5.1 of this
      Agreement, the Company is under no obligation to register the Securities under
      the Securities Act or any state securities law, or to take any action to make
      any exemption from any such registration provisions available.

     

                  
(ii)    The
      Purchaser is an accredited investor within the meaning of Rule 501 of Regulation
      D, is knowledgeable, sophisticated and experienced in making, and is qualified
      to make, decisions with respect to investment shares representing an investment
      decision like that involved in the purchase of the Securities.

             
      

                   (iii)    The
      Purchaser is purchasing the Securities for his, her or its own account for
      investment only and has no intention of selling or distributing the Securities
      and no other person has any interest in or participation in the Securities
      or
      any right, option, security interest, pledge or other interest in or to the
      Securities. The Purchaser recognizes that an investment in the Securities
      involves a high degree of risk, including a risk of total loss of the Purchaser.
      The Purchaser understands, acknowledges and agrees that it must bear the
      economic risk of its investment in the Securities for an indefinite period
      of
      time and has knowledge and experience in financial and business matters such
      that it is capable of evaluating the risks of the investment in the Securities
      and the Purchaser understands, acknowledges and agrees that prior to any such
      offer or sale, the Company may require, subject to the fulfillment of the
      Company’s obligations under Section 6 of this Agreement, as a condition to
      effecting a transfer of the Securities, an opinion of counsel, acceptable to
      the
      Company, as to the registration or exemption therefrom under the Securities
      Act
      and any state securities acts, if applicable.

    

    (iv)    The
      Purchaser acknowledges that the Securities will bear a legend in substantially
      the following form:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
      OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR TNX TELEVISION HOLDINGS, INC. SHALL HAVE RECEIVED
      AN
      OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
      ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (g)    Neither
      the Purchaser, nor
      any
      affiliate of the Purchaser or any person acting on his, her or its behalf,
      has
      recently sold shares of unregistered Common Stock of the Company.

    

    4.     Condition
      to the Obligations of the Company.
      The
      obligations of the Company under Section 1.2 of this Agreement are subject
      to fulfillment, or the waiver, of the following condition on or before the
      Closing:

    

    4.1    Accuracy
      of Representations and Warranties.
      The
      representations and warranties of the Purchasers contained in Section 3
      shall be true on and as of the Closing Date with the same effect as though
      such
      representations and warranties had been made on and as of that date (except
      that
      any representation or warranty expressly stated to have been made or given
      as of
      a specific date need be true only as of such date).

    

    5.     Covenants
      of the Company.

    

    5.1    Piggyback
      Registration Rights.
      If at
      any time the Company shall determine to register under the Securities Act any
      of
      its securities (other than on Form S-8 or Form S-4 or their then equivalents
      and
      other than shares to be issued solely (i) in connection with any acquisition
      of
      any entity or business (ii) upon the exercise of stock options, or (iii)
      pursuant to employee benefit plans), it shall send to each holder of Registrable
      Shares (as defined below), including each holder who has the right to acquire
      Registrable Shares, written notice of such determination and, if within thirty
      (30) days after receipt of such notice, such holder shall so request in writing,
      the Company shall use its commercially reasonable efforts to include in such
      registration statement all or any part of the Registrable Shares such holder
      requests to be registered therein; provided that, if, in connection with any
      offering involving an underwriting of Common Stock to be issued by the Company,
      the managing underwriter shall prohibit the inclusion of shares of Common Stock
      by selling holders in such registration statement or shall impose a limitation
      on the number of shares of such Common Stock which may be included in any such
      registration statement because, in its judgment, such limitation is necessary
      to
      effect an orderly public distribution, and such limitation is imposed pro rata
      with respect to all securities whose holders have a contractual, incidental
      (“piggyback”) right to include such securities in the registration statement and
      as to which inclusion has been requested pursuant to such right and there is
      first excluded from such registration statement all shares of Common Stock
      sought to be included therein by (i) any holder thereof not having any such
      contractual, incidental registration rights, and (ii) any holder thereof having
      contractual, incidental registration rights subordinate and junior to the rights
      of the holders of Registrable Shares, the Company shall then be obligated to
      include in such registration statement only such limited portion (which may
      be
      none) of the Registrable Shares with respect to which such holder has requested
      inclusion hereunder. “Registrable Shares” means the shares of Common Stock
      included in the Units and the shares of Common Stock underlying the Warrants
      included in the Units; provided, however, that shares of Common Stock shall
      cease to be Registrable Shares upon any sale of such shares pursuant to (i)
      a
      registration statement filed under the Securities Act, or (ii) Rule 144
      promulgated under the Securities Act.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

             
5.2    Reservation
      of Common Stock.
      The
      Company shall reserve and maintain a sufficient number of shares of Common
      Stock
      for issuance upon exercise of all of the outstanding Securities. 

    

    6.   Transfer
      of Securities.
      The
      Subscriber is aware that the Company will make a notation in its appropriate
      records and issue “stop transfer” instructions to its transfer agent with
      respect to the restrictions on the transferability of such
      Securities.

     

              (a)   The
      Purchaser understands that this subscription is not binding upon the Company
      until the Company accepts it, which acceptance is at the sole discretion of
      the
      Company and is to be evidenced by the Company’s execution of this Agreement
      where indicated. This Agreement shall be null and void if the Company does
      not
      accept it as aforesaid. In the event the Company does not accept the Offering
      proceeds, the Offering will not be completed and all Offering proceeds will
      thereafter be promptly returned to the Purchasers without interest or deduction.
      The undersigned understands that the Company may, in its sole discretion, reject
      this subscription, in whole or in part, and/or reduce this subscription in
      any
      amount and to any extent, whether or not pro rata reductions are made of any
      other investor’s subscription.

        
      

        
(b)    Subject
      to applicable state securities laws, the subscription delivered to the Company
      by the Purchaser pursuant to this Agreement is not subject to revocation by
      the
      Purchaser, but may be rejected by the Company, in whole or in part, in the
      Company’s sole discretion, in which event the purchase price and execution copy
      of this Agreement submitted will be returned (by mail) to the undersigned
      without interest or deduction within 15 business days thereafter. 

     

    7.    The
      Shares are subject to standard anti-dilution provisions in the event of forward
      or reverse stock splits or recapitalizations. For example, if the Company
      engages in a two for one reverse stock split, a holder of 100,000 Shares will
      be
      affected as follows:

    

    Pre-Split
      Ownership:

    

    100,000
      Shares

    
 

    Post-Split
      Ownership:

    

    50,000
      Shares

    

    8.    Miscellaneous.

     

           8.1    Successors
      and Assigns.
      This
      Agreement and any rights and obligations hereunder may not be transferred or
      assigned by the Purchaser without the prior written consent of the Company.
      This
      Agreement shall inure to the benefit of, and be binding upon the Company and
      the
      Purchaser and their respective heirs, legal representatives and permitted
      assigns.

     

              8.2    Survival.
      All
      representations and warranties and all covenants, agreements and obligations
      made by the Company or the Purchasers in this Agreement, or in any instrument
      or
      document furnished in connection with this Agreement or the transactions
      contemplated hereby, shall survive the Closing and any investigation at any
      time
      made by or on behalf of any indemnified party. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

             

             
8.3.   Indemnification.
      The
      Purchaser agrees to indemnify the Company and hold it harmless from and against
      any and all losses, damages, liabilities, costs and expenses which it may
      sustain or incur in connection with the breach by the Purchaser of any
      representation, warranty or covenant made by the Purchaser .

              

              8.4    Notices.
      All
      notices or other communications hereunder shall be in writing and shall be
      deemed to have been duly given if delivered personally or mailed by certified
      or
      registered mail, return receipt requested, postage prepaid, as follows:

                    

                   (a) If
      to the
      Company, to U.S. Wireless Data, Inc., c/o Trinad Capital, 2121 Avenue of the
      Stars, Suite 1650, Los Angeles, CA 90067, Attention: Chief Executive Officer
      or
      to such other address as the Company or the undersigned shall have designated
      to
      the other by like notice.

                    

                   (b) If
      to a
      Purchaser, at his, her or its address set forth on Exhibit A,
      or at
      such other address or addresses as may have been furnished to the Company in
      writing by such Purchaser. 

     

              8.5    Entire
      Agreement.
      This
      Agreement and the Warrant embody the entire agreement and understanding between
      the parties hereto with respect to the subject matter hereof and supersede
      all
      prior agreements and understandings relating to such subject matter.

     

             
8.6    Amendments
      and Waivers.
      Except
      as otherwise expressly set forth in this Agreement, any term of this Agreement
      may be amended and the observance of any term of this Agreement may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively) with the written consent of the Company and the majority of
      the
      Purchasers. No waivers of or exceptions to any term, condition or provision
      of
      this Agreement, in any one or more instances, shall be deemed to be, or
      construed as, a further or continuing waiver of any such term, condition or
      provision. 

     

              8.7    Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original, but all of which shall be one and the same document.
      

     

             
8.8    Section
      Headings.
      The
      section headings are for the convenience of the parties and in no way alter,
      modify, amend, limit, or restrict the contractual obligations of the parties.
      

     

             
8.9    Severability.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this
      Agreement.

     

             
8.10   Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York.

     

    [signature
      page to follow]

    

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

    SIGNATURE
      PAGE                        Date
      Signed: _________ , 2006

     

    Number
      of Units:               _____________

    

    Multiplied
      by Offering Price Per Unit:       x      $1.00  

    

    Equals
      Amount:    =    
      $   __

     

     

    
      	 	 	 	 
	
              Signature

            	 	 Second
              Signature 
               (if
                purchasing jointly)

            	 
	 	 	 	 
	 	 	 	 
	Printed Name 	 	Printed Second Name	 
	 	 	 	 
	 	 	 	 
	
              Entity Name

            	 	Entity
              Name	 
	 	 	 	 
	 	 	 	 
	Address	 	Address	 
	 	 	 	 
	 	 	 	 
	City, State and Zip Code	 	City, State and Zip Code	 
	 	 	 	 
	 	 	 	 
	Telephone-Business	 	Telephone-Business	 
	 	 	 	 
	 	 	 	 
	Facsimile-Business	 	Facsimile-Business	 
	 	 	 	 
	 	 	 	 
	Tax ID # or Social Security
              # 	 	Tax ID # or Social Security #	 
	 	 	 	 
	 	 	 	 
	 Name
              in which securities should be
              issued: 	
            	 
	 	 	 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        

      

    

    This
      Agreement is agreed to and accepted as of ________ , 2006.

    

     

    
      	 	 	 
	 	U.S.
              WIRELESS DATA, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            
	 	
              Name:

              Title: 

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      A 

    List
      of Purchasers

    

    

    
      	 	 
	
               

              Name
                and Address 

              of
                Purchaser

            	 	
               

              No.
                of Units

            	 	
               

              Aggregate
                

              Purchase
                Price

            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	$	
            	 
	 	 	 	 	 	 	 	 
	
              TOTALS:

            	 	 	 	 	
              
              

              $

            	
              
              

              
              

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    Warrant

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