Document:

CERTIFICATE OF DESIGNATION
                                       OF
                      SERIES F CONVERTIBLE PREFERRED STOCK
                                       OF
                      COMMODORE APPLIED TECHNOLOGIES, INC.

                      ------------------------------------
                         Pursuant to Section 151 of the
                         General Corporation Law of the
                                State of Delaware
                      ------------------------------------

     Commodore Applied Technologies, Inc., a corporation organized and existing
under the General Corporation Law of the State of Delaware (the "Corporation"),
hereby certifies that the following resolutions were adopted by the Board of
Directors of the Corporation on March 15, 2000 pursuant to authority of the
Board of Directors as required by Section 151 of the General Corporation Law of
the State of Delaware:

     RESOLVED, that pursuant to the authority granted to and vested in the Board
of Directors of this Corporation (the "Board of Directors" or the "Board") in
accordance with the provisions of its Certificate of Incorporation, the Board of
Directors hereby authorizes a series of the Corporation's previously authorized
Preferred Stock, par value $0.001 per share (the "Preferred Stock"), and hereby
states the designation and number of shares, and fixes the relative rights,
preferences, privileges, powers and restrictions thereof as follows:

     Series F Convertible Preferred Stock:

                                    ARTICLE 1
                                   DEFINITIONS

     The terms defined in this Article whenever used in this Certificate of
Designation have the following respective meanings:

     (a) "Additional Capital Shares" has the meaning set forth in Section
6.1(c).

     (b) "Affiliate" has the meaning ascribed to such term in Rule 12b-2 under
the Securities Exchange Act of 1934, as amended.

     (c) "Amex" means the American Stock Exchange.

     (d) "Business Day" means a day other than Saturday, Sunday or any day on
which banks located in the State of New York are authorized or obligated to
close.

     (e) "Capital Shares" means the Common Shares and any other shares of any
other class or series of capital stock, whether now or hereafter authorized and
however

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designated, which have the right to participate in the distribution of earnings
and assets (upon dissolution, liquidation or winding-up) of the Corporation.

     (f) "Closing Date" shall have the meaning set forth in the Securities
Purchase Agreement.

     (g) "Common Shares" or "Common Stock" means shares of common stock, par
value $ 0.001 per share, of the Corporation.

     (h) "Common Stock Issued at Conversion", when used with reference to the
securities issuable upon conversion of the Series F Preferred Stock, means all
Common Shares now or hereafter Outstanding and securities of any other class or
series into which the Series F Preferred Stock hereafter shall have been changed
or substituted, whether now or hereafter created and however designated.

     (i) "Conversion Date" means any day on which all or any portion of shares
of the Series F Preferred Stock is converted in accordance with the provisions
hereof.

     (j) "Conversion Notice" means a written notice of conversion substantially
in the form annexed hereto as Annex I.

     (k) "Conversion Price" has the meaning set forth in Section 6.1.

     (l) "Corporation" means Commodore Applied Technologies, Inc., a Delaware
corporation, and any successor or resulting corporation by way of merger,
consolidation, sale or exchange of all or substantially all of the Corporation's
assets, or otherwise.

     (m) "Current Market Price" means on any date of determination the closing
price of a Common Share on such day as reported on the Amex; provided, if such
security is not listed or admitted to trading on the Amex, as reported on the
principal national security exchange or quotation system on which such security
is quoted or listed or admitted to trading, or, if not quoted or listed or
admitted to trading on any national securities exchange or quotation system, the
closing price of such security on the over-the-counter market on the day in
question as reported by Bloomberg LP, or a similar generally accepted reporting
service, as the case may be.

     (n) "Default Dividend Rate" is equal to the Dividend Rate plus an
additional 4% per annum.

     (o) "Dividend Period" means the quarterly period commencing on and
including the Issue Date or, if a dividend has previously been paid, the day
after the immediately preceding Dividend Payment Due Date and ending on and
including the immediately subsequent Dividend Payment Due Date.

     (p) "Dividend Payment Due Date" means March 31, June 30, September 30 and
December 31 of each year.

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<PAGE>

     (q) "Dividend Rate" means 12% per annum, computed on the basis of a 360-day
year up to and including September 30, 2000 and thereafter 5% per annum,
computed on the basis of a 360-day period.

     (r) "Holder" means The Shaar Fund Ltd., any successor thereto, or any
Person or Persons to whom the Series F Preferred Stock is subsequently
transferred in accordance with the provisions hereof.

     (s) "Issue Date" means, as to any share of Series F Preferred Stock, the
date of issuance of such share.

     (t) "Junior Securities" means all capital stock of the Corporation except
for the Series F Preferred Stock.

     (u) "Liquidation Preference" means, with respect to a share of the Series F
Preferred Stock, an amount equal to the sum of (i) the Stated Value thereof,
plus (ii) an amount equal to 30% of such Stated Value, plus (iii) the aggregate
of all accrued and unpaid dividends (whether or not declared, whether or not
there were funds legally available for the payment of dividends and whether or
not a Dividend Payment Due Date has occurred since the last dividend payment) on
such share of Series F Preferred Stock until the most recent Dividend Payment
Due Date; provided that, in the event of an actual liquidation, dissolution or
winding up of the Corporation, the amount referred to in clause (iii) above
shall be calculated by including accrued and unpaid dividends to the actual date
of such liquidation, dissolution or winding up, rather than the Dividend Payment
Due Date referred to above.

     (v) "Mandatory Conversion Date" has the meaning set forth in Section 6.8.

     (w) "Market Price" per Common Share means the arithmetic mean of the
closing prices of the Common Shares as reported on the Amex for the ten Trading
Days during any Valuation Period; provided, if such security is not listed or
admitted to trading on the Amex, as reported on the principal national security
exchange or quotation system on which such security is quoted or listed or
admitted to trading, or, if not quoted or listed or admitted to trading on any
national securities exchange or quotation system, the closing price of such
security on the over-the-counter market on the day in question as reported by
Bloomberg LP, or a similar generally accepted reporting service, for the ten
Trading Days during any Valuation Period.

     (x) "Optional Redemption Price" has the meaning set forth in Section 6.5.

     (y) "Outstanding", when used with reference to Common Shares or Capital
Shares (collectively, "Shares"), means, on any date of determination, all issued
and outstanding Shares, and includes all such Shares issuable in respect of
outstanding scrip or any certificates representing fractional interests in such
Shares; provided, however, that any such Shares directly or indirectly owned or
held by or for the account of the Corporation or any Subsidiary of the
Corporation shall not be deemed "Outstanding" for purposes hereof.

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<PAGE>

     (z) "Person" means an individual, a corporation, a partnership, an
association, a limited liability company, an unincorporated business
organization, a trust or other entity or organization, and any government or
political subdivision or any agency or instrumentality thereof.

     (aa) "Redemption Date" has the meaning set forth in Section 6.5.

     (bb) "Registration Rights Agreement" means that certain Registration Rights
Agreement to be dated as of March 15, 2000 between the Corporation and The Shaar
Fund Ltd.

     (cc) "SEC" means the United States Securities and Exchange Commission.

     (dd) "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the SEC thereunder, all as in effect at the time.

     (ee) "Securities Purchase Agreement" means that certain Securities Purchase
Agreement to be dated as of March 15, 2000 between the Corporation and The Shaar
Fund Ltd.

     (ff) "Series E Certificate" means the Certificate of Designation of the
Corporation's Series E Convertible Preferred Stock dated November 4, 1999.

     (gg) "Series F Preferred Shares" or "Series F Preferred Stock" means the
shares of Series F Convertible Preferred Stock of the Corporation or such other
convertible preferred stock of the Corporation as may be exchanged therefor.

     (hh) "Stated Value" has the meaning set forth in Article 2.

     (ii) "Subsidiary" means any entity of which securities or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other persons performing similar functions are owned directly or
indirectly by the Corporation.

     (jj) "Trading Day" means any day on which (a) purchases and sales of
securities authorized for quotation on the Amex are reported thereon, (b) no
event which results in a material suspension or limitation of trading of the
Common Shares on the Amex has occurred and (c) at least one bid for the trading
of Common Shares is reported on the Amex.

     (kk) "Valuation Event" has the meaning set forth in Section 6.1.

     (ll) "Valuation Period" means the period of ten Trading Days immediately
preceding the Conversion Date or in the case of a Valuation Period utilized for
the purpose of Section 4(a)(iii) hereof, Valuation Period shall mean the date of
payment of a dividend in Common Stock; provided, however, that if a Valuation
Event occurs during a Valuation Period on a date less than five Trading Days
before the Conversion Date, the Valuation Period shall be extended until the
date five Trading Days after the occurrence of the Valuation Event.

     All references to "cash" or "$" herein mean currency of the United States
of America.

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<PAGE>

                                    ARTICLE 2
                             DESIGNATION AND AMOUNT

     The designation of this series, which consists of 266,700 shares of
Preferred Stock, shall be Series F Convertible Preferred Stock (the "Series F
Preferred Stock") and the stated value shall be $10 per share (the "Stated
Value").

                                    ARTICLE 3
                                      RANK

     The Series F Preferred Stock shall rank prior to any other capital stock of
the Corporation.

                                    ARTICLE 4
                                    DIVIDENDS

          (a) (i) The Holder shall be entitled to receive, out of funds legally
     available for the payment of dividends, (x) dividends at the Dividend Rate
     on the Stated Value of each share of Series F Preferred Stock on and as of
     each Dividend Payment Due Date with respect to each Dividend Period and, in
     addition, (y) a special dividend (the "Special Dividend") at the rate of
     7.5% per annum (computed on the basis of a 360-day year) on the Stated
     Value of each share of Series F Preferred Stock which shall accrue
     commencing on September 30, 2000 until and including the date of payment
     thereof and shall be due and payable on September 30, 2001; provided,
     however, that no Special Dividend shall be paid in respect of any share of
     Series F Preferred Stock which is converted into Common Stock pursuant to
     Article 6 on or before September 30, 2001; and provided, further, that if
     (X) any dividend which is not a Special Dividend is not paid in full on any
     Dividend Payment Due Date or (Y) the Special Dividend is not paid in full
     on September 30, 2001, dividends shall thereafter accrue and be payable at
     the Default Dividend Rate on the Stated Value of each share of Series F
     Preferred Stock until all accrued dividends are paid in full. Dividends on
     the Series F Preferred Stock shall be cumulative from the date of issue,
     whether or not declared for any reason, including if such declaration is
     prohibited under any outstanding indebtedness or borrowings of the
     Corporation or any of its Subsidiaries, or any other contractual provision
     binding on the Corporation or any of its Subsidiaries, and whether or not
     there shall be funds legally available for the payment thereof.

          (i) Each dividend shall be payable in equal quarterly amounts on each
     Dividend Payment Due Date, commencing June 30, 2000, to the Holders of
     record of shares of the Series F Preferred Stock, as they appear on the
     stock records of the Corporation at the close of business on such record
     date, not more than 60 days or less than 10 days preceding the payment
     dates thereof, as shall be fixed by the Board of Directors. Accrued and
     unpaid dividends for any past Dividend Period may be declared and paid at
     any time, without reference to any Dividend Payment Due Date, to Holders of

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<PAGE>

     record, not more than 15 days preceding the payment date thereof, as may be
     fixed by the Board of Directors.

          (ii) Dividends due hereunder shall be payable in cash; provided,
     however, that at the option of the Corporation, such dividends shall be
     paid either (x) in cash or (y) through the issuance of duly and validly
     authorized and issued, fully paid and nonassessable, freely tradable shares
     of the Common Stock valued at the Market Price and registered for resale in
     the open market transactions on the Registration Statement (as defined in
     the Registration Rights Agreement), which Registration Statement shall then
     be effective under the Securities Act; provided, further, that if no funds
     are legally available for the payment of cash dividends on the Series F
     Preferred Stock, dividends shall be paid as provided in clause (y) above.
     Notwithstanding the foregoing, until such Registration Statement has been
     declared effective under the Securities Act by the SEC, payment of
     dividends on the Series F Preferred Stock shall be in cash.

     (b) Except as provided in Section 4(d) hereof, the Holder shall not be
entitled to any dividends in excess of the cumulative dividends, as herein
provided, on the Series F Preferred Stock.

     (c) So long as any shares of the Series F Preferred Stock are outstanding,
no dividends shall be declared or paid or set apart for payment or other
distribution declared or made upon any Junior Securities, nor shall any Junior
Securities be redeemed, purchased or otherwise acquired (other than a
redemption, purchase or other acquisition of shares of Common Stock made for
purposes of an employee incentive or benefit plan (including a stock option
plan) of the Corporation or any Subsidiary) for any consideration by the
Corporation, directly or indirectly, nor shall any moneys be paid to or made
available for a sinking fund for the redemption of any shares of any Junior
Securities, unless in each case (i) the full cumulative dividends required to be
paid in cash on all outstanding shares of the Series F Preferred Stock shall
have been paid or set apart for payment for all past Dividend Periods with
respect to the Series F Preferred Stock and (ii) sufficient funds shall have
been paid or set apart for the payment of the dividend for the current Dividend
Period with respect to the Series F Preferred Stock.

     (d) If the Corporation shall at any time or from time to time after the
Issue Date declare, order, pay or make a dividend or other distribution
(including, without limitation, any distribution of stock or other securities or
property or rights or warrants to subscribe for securities of the Corporation or
any of its Subsidiaries by way of dividend or spin-off) on shares of its Common
Stock, then, and in each such case, in addition to the dividend obligation of
the Corporation specified in Section 4(a) hereof, the Corporation shall declare,
order, pay and make the same dividend or distribution to each Holder of Series F
Preferred Stock as would have been made with respect to the number of Common
Shares the Holder would have received had it converted all of its Series F
Preferred Shares, and exercised the Warrant held by it in full for all the
Common Shares then underlying the Warrant, immediately prior to such dividend or
distribution.

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                                    ARTICLE 5
              LIQUIDATION PREFERENCE; MERGERS, CONSOLIDATIONS, ETC.

     (a) If the Corporation shall commence a voluntary case under the Federal
bankruptcy laws or any other applicable Federal or state bankruptcy, insolvency
or similar law, or consent to the entry of an order for relief in an involuntary
case under any law or to the appointment of a receiver, liquidator, assignee,
custodian, trustee or sequestrator (or other similar official) of the
Corporation or of any substantial part of its property, or make an assignment
for the benefit of its creditors, or admit in writing its inability to pay its
debts generally as they become due, or if a decree or order for relief in
respect of the Corporation shall be entered by a court having jurisdiction in
the premises in an involuntary case under the Federal bankruptcy laws or any
other applicable Federal or state bankruptcy, insolvency or similar law
resulting in the appointment of a receiver, liquidator, assignee, custodian,
trustee or sequestrator (or other similar official) of the Corporation or of any
substantial part of its property, or ordering the winding up or liquidation of
its affairs, and any such decree or order shall be unstayed and in effect for a
period of 30 consecutive days and, on account of any such event, the Corporation
shall liquidate, dissolve or wind up, or if the Corporation shall otherwise
liquidate, dissolve or wind up, no distribution shall be made to the holders of
any shares of capital stock of the Corporation upon liquidation, dissolution or
winding-up unless prior thereto, the Holders of shares of Series F Preferred
Stock, subject to this Article 5, shall have received the Liquidation Preference
with respect to each share.

     (b) In case the Corporation shall reorganize its capital, reclassify its
capital stock, consolidate or merge with or into another Person (where the
Corporation is not the survivor or where there is a change in or distribution
with respect to the Common Stock of the Corporation), sell, convey, transfer or
otherwise dispose of all or substantially all its property, assets or business
to another Person, or effectuate a transaction or series of related transactions
in which more than 50% of the voting power of the Corporation is disposed of
(each, a "Fundamental Corporate Change") and, pursuant to the terms of such
Fundamental Corporate Change, shares of common stock of the successor or
acquiring corporation, or any cash, shares of stock or other securities or
property of any nature whatsoever (including warrants or other subscription or
purchase rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or distributed
to the holders of Common Stock of the Corporation, then each Holder of Series F
Preferred Stock shall have the right thereafter, at its sole option, either (x)
to require the Corporation to deem such Fundamental Corporate Change to be a
liquidation, dissolution or winding up of the Corporation pursuant to which the
Corporation shall be required to distribute, upon consummation of and as a
condition to, such Fundamental Corporate Change an amount equal to 105% of the
Liquidation Preference with respect to each outstanding share of Series F
Preferred Stock, (y) to receive the number of shares of common stock of the
successor or acquiring corporation or of the Corporation, if it is the surviving
corporation, and Other Property as is receivable upon or as a result of such
Fundamental Corporate Change by a holder of the number of shares of Common Stock
into which such Series F Preferred Stock may be converted at the Conversion
Price applicable immediately prior to such Fundamental Corporate Change or (z)
require the Corporation, or such successor, resulting or purchasing corporation,
as the case may be, to, without benefit of any additional consideration
therefor, to execute and deliver to the Holder shares of its Preferred

                                      -7-
<PAGE>

Stock with substantial identical rights, preferences, privileges, powers,
restrictions and other terms as the Series F Preferred Stock equal to the number
of shares of Series F Preferred Stock held by such Holder immediately prior to
such Fundamental Corporate Change; provided, that all Holders of Series F
Preferred Stock shall be deemed to elect the option set forth in clause (x)
above if at least a majority in interest of such Holders elect such option. For
purposes of this Section 5(b), "common stock of the successor or acquiring
corporation" shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption and shall also include any
evidences of indebtedness, shares of stock or other securities which are
convertible into or exchangeable for any such stock, either immediately or upon
the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 5(b) shall similarly apply to successive
Fundamental Corporate Changes.

                                    ARTICLE 6
                          CONVERSION OF PREFERRED STOCK

     Section 6.1 Conversion; Conversion Price

     At the option of the Holder, the shares of Series F Preferred Stock may be
converted, either in whole or in part, into Common Shares (calculated as to each
such conversion to the nearest 1/100th of a share) at any time and from time to
time on or after September 30, 2000 (or such earlier date as the Holder and the
Corporation shall agree) at a Conversion Price per share of Common Stock equal
to the lesser of (i) $2.50 (subject to adjustment for any stock-split or stock
combination to occur after the date hereof) or (ii) the Market Price (the
"Conversion Price"); provided, that if the Corporation's Common Stock is
delisted off the Amex for any reason, then any remaining unconverted Series F
Preferred Stock may be converted, at the sole option of the Holder, at a
Conversion Price per share of Common Stock equal to 50% of the Market Price. At
the Corporation's option, the amount of accrued and unpaid dividends as of the
Conversion Date shall not be subject to conversion but instead may be paid in
cash as of the Conversion Date; if the Corporation elects to convert the amount
of accrued and unpaid dividends at the Conversion Date into Common Stock, the
Common Stock issued to the Holder shall be valued at the applicable Conversion
Price.

     The number of shares of Common Stock due upon conversion of Series F
Preferred Stock shall be (i) the number of shares of Series F Preferred Stock to
be converted, multiplied by (ii) the Stated Value plus accrued and unpaid
dividends (whether or not declared, whether or not there were funds legally
available for the payment of dividends and whether or not a Dividend Payment Due
Date has occurred since the last dividend payment), to the extent the
Corporation does not elect to pay, and pay, accrued and unpaid dividends in
cash, and divided by (iii) the applicable Conversion Price.

     Within two Business Days of the occurrence of a Valuation Event, the
Corporation shall send notice thereof to each Holder. Notwithstanding anything
to the contrary contained herein, if a Valuation Event occurs during any
Valuation Period, the Holder may

                                      -8-
<PAGE>

convert some or all of its Series F Preferred Stock, at its sole option, at a
Conversion Price equal to the Current Market Price on any Trading Day during the
Valuation Period.

     For purposes of this Section 6.1, a "Valuation Event" shall mean an event
in which the Corporation takes any of the following actions:

     (a) subdivides or combines its Capital Shares;

     (b) makes any distribution on its Capital Shares;

     (c) issues any additional Capital Shares (the "Additional Capital Shares"),
otherwise than as provided in the foregoing Sections 6.1(a) and 6.1(b) above, at
a price per share less, or for other consideration lower, than the Current
Market Price in effect immediately prior to such issuances, or without
consideration, except for issuances under (A) employee benefit plans consistent
with those presently in effect, (B) presently outstanding warrants, options or
convertible securities and (C) in connection with an acquisition or merger where
the Board of Directors of the Corporation determines in good faith that such
Additional Capital Shares are not being issued for consideration lower than the
Current Market Price in effect immediately prior to such issuances;

     (d) issues any warrants, options or other rights to subscribe for or
purchase any Additional Capital Shares if the price per share for which
Additional Capital Shares may at any time thereafter be issuable pursuant to
such warrants, options or other rights shall be less than the Current Market
Price in effect immediately prior to such issuance;

     (e) issues any securities convertible into or exchangeable or exercisable
for Additional Capital Shares if the consideration per share for which
Additional Capital Shares may at any time thereafter be issuable pursuant to the
terms of such convertible, exchangeable or exercisable securities shall be less
than the Current Market Price in effect immediately prior to such issuance;

     (f) announces or effects a Fundamental Corporate Change;

     (g) makes any distribution of its assets or evidences of indebtedness to
the holders of its Capital Shares as a dividend in liquidation or by way of
return of capital or other than as a dividend payable out of earnings or surplus
legally available for the payment of dividends under applicable law or any
distribution to such holders made in respect of the sale of all or substantially
all of the Corporation's assets (other than under the circumstances provided for
in the foregoing Sections 6.1(a) through 6.1(e)); or

     (h) takes any action affecting the number of Outstanding Capital Shares,
other than an action described in any of the foregoing Sections 6.1(a) through
6.1(g) hereof, inclusive, which in the opinion of the Holder, determined in good
faith, would have a material adverse effect upon the rights of the Holder at the
time of a conversion of the Preferred Stock or is reasonably likely to result in
a decrease in the Market Price.

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<PAGE>

     Section 6.2 Exercise of Conversion Privilege

     (a) Conversion of the Series F Preferred Stock may be exercised, in whole
or in part, by the Holder by telecopying an executed and completed Conversion
Notice to the Corporation. Each date on which a Conversion Notice is telecopied
to the Corporation in accordance with the provisions of this Section 6.2 shall
constitute a Conversion Date. The Corporation shall convert the Preferred Stock
and issue the Common Stock Issued at Conversion, and all voting and other rights
associated with the beneficial ownership of the Common Stock Issued at
Conversion shall vest with the Holder, effective as of the Conversion Date at
the time specified in the Conversion Notice. The Conversion Notice also shall
state the name or names (with addresses) of the Persons who are to become the
holders of the Common Stock Issued at Conversion in connection with such
conversion. The Holder shall deliver the shares of Series F Preferred Stock to
the Corporation by express courier within 30 days following the Conversion Date.
Upon surrender for conversion, the Preferred Stock shall be accompanied by a
proper assignment thereof to the Corporation or be endorsed in blank. As
promptly as practicable after the receipt of the Conversion Notice as aforesaid,
but in any event not more than five Business Days after the Corporation's
receipt of such Conversion Notice, the Corporation shall (i) issue the Common
Stock issued at Conversion in accordance with the provisions of this Article 6,
and (ii) cause to be mailed for delivery by overnight courier to the Holder (x)
a certificate or certificate(s) representing the number of Common Shares to
which the Holder is entitled by virtue of such conversion, (y) cash, as provided
in Section 6.3, in respect of any fraction of a Common Share issuable upon such
conversion and (z) if the Corporation chooses to pay accrued and unpaid
dividends in cash, cash in the amount of accrued and unpaid dividends as of the
Conversion Date. Such conversion shall be deemed to have been effected at the
time at which the Conversion Notice indicates so long as the Series F Preferred
Stock shall have been surrendered as aforesaid at such time, and at such time
the rights of the Holder of the Series F Preferred Stock, as such, shall cease
and the Person or Persons in whose name or names the Common Stock Issued at
Conversion shall be issuable shall be deemed to have become the holder or
holders of record of the Common Shares represented thereby and all voting and
other rights associated with the beneficial ownership of such Common Shares
shall at such time vest with such Person or Persons. The Conversion Notice shall
constitute a contract between the Holder and the Corporation, whereby the Holder
shall be deemed to subscribe for the number of Common Shares which it will be
entitled to receive upon such conversion and, in payment and satisfaction of
such subscription (and for any cash adjustment to which it is entitled pursuant
to Section 6.3), to surrender the Series F Preferred Stock and to release the
Corporation from all liability thereon. No cash payment aggregating less than
$1.00 shall be required to be given unless specifically requested by the Holder.

     (b) If, at any time (i) the Corporation challenges, disputes or denies the
right of the Holder hereof to effect the conversion of the Series F Preferred
Stock into Common Shares or otherwise dishonors or rejects any Conversion Notice
delivered in accordance with this Section 6.2 or (ii) any third party commences
any lawsuit or proceeding or otherwise asserts any claim before any court or
public or governmental authority which seeks to challenge, deny, enjoin, limit,
modify, delay or dispute the right of the Holder hereof to effect the conversion
of the Series F Preferred Stock into Common Shares (a "Blockage Claim"), and
such Blockage Claim shall remain in effect and not be resolved for a period of
more than 90 days, then the Holder shall have

                                      -10-
<PAGE>

the right, by written notice to the Corporation, to require the Corporation
promptly to redeem the Series F Preferred Stock for cash at a redemption price
equal to 105% of the Stated Value thereof together with all accrued and unpaid
dividends (whether or not declared, whether or not there were funds legally
available for the payment of dividends and whether or not a Dividend Payment Due
Date has occurred since the last dividend payment) thereon (the "Mandatory
Purchase Amount"). Under any of the circumstances set forth above, the
Corporation shall be responsible for the payment of all costs and expenses of
the Holder, including reasonable legal fees and expenses, as and when incurred
in disputing any such action or pursuing its rights hereunder (in addition to
any other rights of the Holder).

     (c) The Holder shall be entitled to exercise its conversion privilege
notwithstanding the commencement of any case under 11 U.S.C. ss. 101 et seq.
(the "Bankruptcy Code"). In the event the Corporation is a debtor under the
Bankruptcy Code, the Corporation hereby waives to the fullest extent permitted
any rights to relief it may have under 11 U.S.C. ss. 362 in respect of the
Holder's conversion privilege. The Corporation hereby waives to the fullest
extent permitted any rights to relief it may have under 11 U.S.C. ss. 362 in
respect of the conversion of the Series F Preferred Stock. The Corporation
agrees, without cost or expense to the Holder, to take or consent to any and all
action necessary to effectuate relief under 11 U.S.C. ss. 362.

     Section 6.3 Fractional Shares

     No fractional Common Shares or scrip representing fractional Common Shares
shall be issued upon conversion of the Series F Preferred Stock. Instead of any
fractional Common Shares which otherwise would be issuable upon conversion of
the Series F Preferred Stock, the Corporation shall pay a cash adjustment in
respect of such fraction in an amount equal to the same fraction.

     Section 6.4 Adjustments to Conversion Price

     Except with respect to issuances of Capital Shares in connection with an
acquisition or merger where the Board of Directors of the Corporation determines
in good faith that such Capital Shares are not being issued for consideration
lower than the Current Market Price in effect immediately prior to such
issuances, for so long as any shares of the Series F Preferred Stock are
outstanding, if the Corporation issues and sells pursuant to an exemption from
registration under the Securities Act (A) Common Shares at a purchase price on
the date of issuance thereof that is lower than the Conversion Price, (B)
warrants or options with an exercise price on the date of issuance thereof that
is lower than the Conversion Price for the Holder on such date, except for
warrants or options issued pursuant to employee benefit plans consistent with
those presently in effect, employee stock option agreements or stock incentive
agreements of the Corporation, or (C) convertible, exchangeable or exercisable
securities with a right to exchange at lower than the Current Market Price on
the date of issuance or conversion, as applicable, of such convertible,
exchangeable or exercisable securities, except for stock option agreements or
stock incentive agreements, then on any date on which the Conversion Price shall
be determined, the Conversion Price shall be reduced by an amount equal to the
amount by which the purchase price, exercise price or exchange price, as
applicable, is lower than the

                                      -11-
<PAGE>

Conversion Price or Current Market Price, as applicable, multiplied by a
fraction the denominator of which is $2,000,000 and the numerator of which is
the sum of (A) the aggregate number of (i) Common Shares, in the case of (A)
above, (ii) Common Shares into which the warrants or options are exchangeable
into, in the case of (B) above, or (iii) equity securities into which the
convertible or exchangeable securities are exercisable into, in the case of (C)
above, multiplied by (B) the Conversion Price, in each case, with a maximum
adjustment equal to the applicable discount triggering such adjustment pursuant
to this Section 6.4.

     Notwithstanding the foregoing, the application of the provisions of this
Section 6.4 shall not, in and of itself, constitute an adjustment to the terms
of the Series E Preferred Stock pursuant to Section 6.4 of the Series E
Certificate.

     Section 6.5 Optional Redemption

     (a) At any time on or before September 30, 2000 (the "September 30, 2000
Redemption Date") the Corporation, upon notice delivered to the Holder as
provided in Section 6.6, may redeem the Series F Preferred Stock for a
redemption price of $2,250,000, together with all accrued and unpaid dividends
on the Series F Preferred Stock through September 30, 2000, in each case in cash
(the "Section 6.5(a) Optional Redemption Price").

     (b) At any time after the September 30, 2000 Redemption Date until the
Mandatory Conversion Date (as defined below), the Corporation, upon notice
delivered to the Holder as provided in Section 6.6, may redeem, in cash, the
Series F Preferred Stock (but only with respect to such shares as to which the
Holder has not theretofore furnished a Conversion Notice in compliance with
Section 6.2), at the Stated Value thereof (the "Section 6.5(b) Optional
Redemption Price"), together with all accrued and unpaid dividends (whether or
not declared, whether or not there were funds legally available for the payment
of dividends and whether or not a Dividend Payment Due Date has occurred since
the last dividend payment) thereon to the date of redemption (the "Section
6.5(b) Redemption Date" and, together with the September 30, 2000 Redemption
Date, the "Redemption Date").

     (c) The Section 6.5(a) Redemption Price and the Section 6.5(b) Redemption
Price, as applicable, is referred to herein as the "Optional Redemption Price."
Except as set forth in this Section 6.5, the Corporation shall not have the
right to redeem the Series F Preferred Stock.

     Section 6.6 Notice of Redemption

     Notice of redemption pursuant to Section 6.5 shall be provided by the
Corporation to the Holder in writing (by registered mail or overnight courier at
the Holder's last address appearing in the Corporation's security registry) not
less than 10 nor more than 15 days prior to the Redemption Date, which notice
shall specify the Redemption Date and refer to Section 6.5 (including a
statement of the Current Market Price per Common Share) and this Section 6.6.

                                      -12-
<PAGE>

     Section 6.7 Surrender of Preferred Stock

     Upon any redemption of the Series F Preferred Stock pursuant to Sections
6.5 and 6.6, the Holder shall either deliver the Series F Preferred Stock by
hand to the Corporation at its principal executive offices or surrender the same
to the Corporation at such address by express courier within 14 days after the
date that the Buyer receives payment therefore. Payment of the Optional
Redemption Price shall be made by the Corporation to the Holder by wire transfer
of immediately available funds to such account(s) as the Holder shall specify to
the Corporation. If payment of such Optional Redemption Price is not made in
full by the Redemption Date, the Holder shall again have the right to convert
the Series F Preferred Stock as provided in Article 6 hereof.

     Section 6.8 Mandatory Conversion

     On the 42nd (forty-second) calendar month anniversary of the Issue Date of
this Certificate of Designation (the "Mandatory Conversion Date"), the
Corporation shall convert all Series F Preferred Stock outstanding, at the
Conversion Price utilizing the Stated Value (plus accrued and unpaid dividends)
(whether or not declared, whether or not there were funds legally available for
the payment of dividends and whether or not a Dividend Payment Due Date has
occurred since the last dividend payment)) as the value of each share of Series
F Preferred Stock, into shares of Common Stock registered for resale in open
market transactions on the Registration Statement (as defined in the
Registration Rights Agreement), which Registration Statement shall then be
effective under the Securities Act.

     Section 6.9 Certain Conversion Limitations

     (a) Notwithstanding anything herein to the contrary, the Holder shall not
have the right, and the Corporation shall not have the obligation, to convert
all or any portion of the Series F Preferred Stock (and the Corporation shall
not have the right to pay dividends on the Series F Preferred Stock in shares of
Common Stock) if and to the extent that the issuance to the Holder of shares of
Common Stock upon such conversion (or payment of dividends) would result in the
Holder being deemed the "beneficial owner" of more than 5% of the then
Outstanding shares of Common Stock within the meaning of Section 13(d) of the
Securities Exchange Act of 1934, as amended, and the rules promulgated
thereunder. If any court of competent jurisdiction shall determine that the
foregoing limitation is ineffective to prevent a Holder from being deemed the
beneficial owner of more than 5% of the then Outstanding shares of Common Stock,
then the Corporation shall redeem so many of such Holder's shares (the
"Redemption Shares") of Series F Preferred Stock as are necessary to cause such
Holder to be deemed the beneficial owner of not more than 5% of the then
Outstanding shares of Common Stock. Upon such determination by a court of
competent jurisdiction, the Redemption Shares shall immediately and without
further action be deemed returned to the status of authorized but unissued
shares of Series F Preferred Stock, and the Holder shall have no interest in or
rights under such Redemption Shares. Any and all dividends paid on or prior to
the date of such determination shall be deemed dividends paid on the remaining
shares of Series F Preferred Stock held by the Holder. Such redemption shall be
for cash at a redemption price equal to the sum of (i) 105% of the Stated Value
of the Redemption Shares and (ii) any accrued and unpaid dividends (whether

                                      -13-
<PAGE>

or not declared, whether or not there were funds legally available for the
payment of dividends and whether or not a Dividend Payment Due Date has occurred
since the last dividend payment) to the date of such redemption.

     (b) Notwithstanding anything herein to the contrary, if and to the extent
that, on any date (the "Section 16 Determination Date"), the holding by the
Holder of shares of the Series F Preferred Stock would result in the Holder's
becoming subject to the provisions of Section 16(b) of the Exchange Act in
virtue of being deemed the "beneficial owner" of more than 10% of the then
Outstanding shares of Common Stock, then the Holder shall not have the right,
and the Corporation shall not have the obligation, to convert so many of such
Holder's shares of Series F Preferred Stock (the "Section 16 Redemption Shares")
as shall cause such Holder to be deemed the beneficial owner of more than 10% of
the then Outstanding shares of Common Stock during the period ending 60 days
after the Section 16 Determination Date. If any court of competent jurisdiction
shall determine that the foregoing limitation is ineffective to prevent a Holder
from being deemed the beneficial owner of more than 10% of the then Outstanding
shares of Common Stock for the purposes of such Section 16(b), then the
Corporation shall redeem the Section 16 Redemption Shares. Upon such
determination by a court of competent jurisdiction, the Section 16 Redemption
Shares shall immediately and without further action be deemed returned to the
status of authorized but unissued shares of Series F Preferred Stock, and the
Holder shall have no interest in or rights under such Section 16 Redemption
Shares. Any and all dividends paid on or prior to the date of such determination
shall be deemed dividends paid on the remaining shares of Series F Preferred
Stock held by the Holder. Such redemption shall be for cash at a redemption
price equal to the sum of (i) 105% of the Stated Value of the Section 16
Redemption Shares and (ii) any declared and unpaid dividends to the date of such
redemption.

     (c) Unless the Corporation shall have obtained the approval of its voting
stockholders to such issuance in accordance with the rules of the Amex or any
other stock market rules with which the Corporation shall be required to comply,
but only to the extent required thereby, the Corporation shall not issue shares
of Common Stock (i) upon conversion of any shares of Series F Preferred Stock or
(ii) as a dividend on the Series F Preferred Stock, if such issuance of Common
Stock, when added to the number of shares of Common Stock previously issued by
the Corporation (x) upon conversion of shares of the Series F Preferred Stock,
(y) upon exercise of the Warrants issued pursuant to the terms of the Securities
Purchase Agreement and (z) in payment of dividends on the Series F Preferred
Stock, would equal or exceed 20% of the number of shares of the Corporation's
Common Stock which were issued and Outstanding on the Issue Date (the "Maximum
Issuance Amount"). In the event that a properly executed Conversion Notice is
received by the Corporation which would require the Corporation to issue shares
of Common Stock equal to or in excess of the Maximum Issuance Amount, the
Corporation shall honor such conversion request by (a) converting the number of
shares of Series F Preferred Stock stated in the Conversion Notice which is not
in excess of the Maximum Issuance Amount and (b) redeeming the remaining number
of shares of Series F Preferred Stock stated in the Conversion Notice in cash at
a price equal to 105% of the Stated Value thereof, together with all accrued and
unpaid dividends (whether or not declared, whether or not there were funds
legally available for the payment of dividends and whether or not a Dividend
Payment Due Date has occurred since the last dividend payment) on the total
number of shares stated in the Conversion Notice. In the event that the
Corporation shall elect to pay a dividend in

                                      -14-
<PAGE>

shares of Common Stock which would require the Corporation to issue shares of
Common Stock equal to or in excess of the Maximum Issuance Amount, the
Corporation shall pay (1) a dividend in a number of shares of Common Stock equal
to one less than the Maximum Issuance Amount and (2) the balance of the dividend
in cash.

                                    ARTICLE 7
                                  VOTING RIGHTS

     The Holders of the Series F Preferred Stock have no voting power, except as
otherwise provided by the General Corporation Law of the State of Delaware (the
"DGCL"), in this Article 7, and in Article 8 below.

     Notwithstanding the above, the Corporation shall provide each Holder of
Series F Preferred Stock with prior notification of any meeting of the
shareholders (and copies of all proxy materials and other information sent to
shareholders). In the event of any taking by the Corporation of a record of its
shareholders for the purpose of determining shareholders who are entitled to
receive payment of any dividend or other distribution, any right to subscribe
for, purchase or otherwise acquire (including by way of merger, consolidation or
recapitalization) any share of any class or any other securities or property, or
to receive any other right, or for the purpose of determining shareholders who
are entitled to vote in connection with any proposed liquidation, dissolution or
winding up of the Corporation, the Corporation shall mail a notice thereof to
each Holder at least 30 days prior to the date on which any such record is to be
taken for the purpose of such dividend, distribution, right or other event,
together with a brief statement regarding the amount and character of such
dividend, distribution, right or other event to the extent known at such time.

     To the extent that under the DGCL the vote of the Holders of the Series F
Preferred Stock, voting separately as a class or series as applicable, is
required to authorize a given action of the Corporation, the affirmative vote or
consent of the Holders of at least a majority of the outstanding shares of
Series F Preferred Stock represented at a duly held meeting at which a quorum is
present or by written consent of a majority of the outstanding shares of Series
F Preferred Stock (except as otherwise may be required under the DGCL) shall
constitute the approval of such action by the class. To the extent that under
the DGCL Holders of the Series F Preferred Stock are entitled to vote on a
matter with holders of Common Stock, voting together as one class, each share of
Series F Preferred Stock shall be entitled to a number of votes equal to the
number of shares of Common Stock into which it is then convertible using the
record date for the taking of such vote of shareholders as the date as of which
the Conversion Price is calculated. Holders of the Series F Preferred Stock
shall be entitled to notice of all shareholder meetings or written consents (and
copies of all proxy materials and other information sent to shareholders) with
respect to which they would be entitled to vote, which notice would be provided
pursuant to the Corporation's bylaws and the DGCL.

                                      -15-
<PAGE>

                                    ARTICLE 8
                              PROTECTIVE PROVISIONS

     So long as shares of Series F Preferred Stock are outstanding, the
Corporation shall not, without first obtaining the approval (by vote or written
consent, as provided in the DGCL) of the Holders of at least a majority of the
then outstanding shares of Series F Preferred Stock:

     (a) alter or change the rights, preferences or privileges of the Series F
Preferred Stock;

     (b) create any new class or series of capital stock having a preference
over the Series F Preferred Stock as to distribution of assets upon liquidation,
dissolution or winding up of the Corporation ("Senior Securities") or alter or
change the rights, preferences or privileges of any Senior Securities so as to
affect adversely the Series F Preferred Stock;

     (c) increase the authorized number of shares of Series F Preferred Stock;
or

     (d) do any act or thing not authorized or contemplated by this Certificate
of Designation which would result in taxation of the Holders of shares of the
Series F Preferred Stock under Section 305 of the Internal Revenue Code of 1986,
as amended (or any comparable provision of the Internal Revenue Code of 1986, as
hereafter from time to time amended).

     In the event Holders of least a majority of the then outstanding shares of
Series F Preferred Stock agree to allow the Corporation to alter or change the
rights, preferences or privileges of the shares of Series Preferred Stock,
pursuant to subsection (a) above, so as to affect the Series F Preferred Stock,
then the Corporation will deliver notice of such approved change to the Holders
of the Series Preferred Stock that did not agree to such alteration or change
(the "Dissenting Holders") and Dissenting Holders shall have the right for a
period of 30 days to convert pursuant to the terms of this Certificate of
Designation as in effect prior to such alteration or change or to continue to
hold their shares of Series F Preferred Stock.

     Notwithstanding anything to the contrary herein, if at any time the
Corporation shall "spin-off" certain of its assets or businesses by
transferring, directly or indirectly, such assets or businesses to a Subsidiary
of the Corporation ("Spinco") and making a dividend (the "Spin-off Dividend") to
the Corporation's stockholders of the shares of capital stock of Spinco, then
prior to making the Spin-off Dividend, the Corporation shall cause Spinco to
issue to each Holder that number of shares of preferred stock of Spinco with
substantially identical rights, preferences, privileges, powers, restrictions
and other terms as the Series F Preferred Stock equal to the number of shares of
Series F Preferred Shares held by such Holder immediately prior to the Spin-off
Dividend.

                                      -16-
<PAGE>

                                    ARTICLE 9
                                  MISCELLANEOUS

     Section 9.1 Loss, Theft, Destruction of Preferred Stock

     Upon receipt of evidence satisfactory to the Corporation of the loss,
theft, destruction or mutilation of shares of Series F Preferred Stock and, in
the case of any such loss, theft or destruction, upon receipt of indemnity or
security reasonably satisfactory to the Corporation, or, in the case of any such
mutilation, upon surrender and cancellation of the Series F Preferred Stock, the
Corporation shall make, issue and deliver, in lieu of such lost, stolen,
destroyed or mutilated shares of Series F Preferred Stock, new shares of Series
F Preferred Stock of like tenor. The Series F Preferred Stock shall be held and
owned upon the express condition that the provisions of this Section 9.1 are
exclusive with respect to the replacement of mutilated, destroyed, lost or
stolen shares of Series F Preferred Stock and shall preclude any and all other
rights and remedies notwithstanding any law or statute existing or hereafter
enacted to the contrary with respect to the replacement of negotiable
instruments or other securities without the surrender thereof.

     Section 9.2 Who Deemed Absolute Owner

     The Corporation may deem the Person in whose name the Series F Preferred
Stock shall be registered upon the registry books of the Corporation to be, and
may treat it as, the absolute owner of the Series F Preferred Stock for the
purpose of receiving payment of dividends on the Series F Preferred Stock, for
the conversion of the Series F Preferred Stock and for all other purposes, and
the Corporation shall not be affected by any notice to the contrary. All such
payments and such conversion shall be valid and effectual to satisfy and
discharge the liability upon the Series F Preferred Stock to the extent of the
sum or sums so paid or the conversion so made.

     Section 9.3 Fundamental Corporate Change

     In the case of the occurrence of any Fundamental Corporate Change described
in Section 5(b), the Corporation shall cause to be mailed to the Holder of the
Series F Preferred Stock at its last address as it appears in the Corporation's
security registry, at least 20 days prior to the applicable record, effective or
expiration date specified in connection therewith (or, if such 20 days notice is
not possible, at the earliest possible date prior to any such record, effective
or expiration date), a notice stating (x) the date on which a record is to be
taken for the purpose of such corporate action, or if a record is not to be
taken, the date as of which the Holders of record of Series F Preferred Stock to
be entitled to any dividend, distribution, issuance or granting of rights,
options or warrants are to be determined or the date on which such Fundamental
Corporate Change is expected to become effective, and (y) the date as of which
it is expected that Holders of record of Series F Preferred Stock will be
entitled to exchange their shares for securities, cash or other property
deliverable upon such Fundamental Corporate Change.

                                      -17-
<PAGE>

     Section 9.4 Register

     The Corporation shall keep at its principal office a register in which the
Corporation shall provide for the registration of the Series F Preferred Stock.
Upon any transfer of the Series F Preferred Stock in accordance with the
provisions hereof, the Corporation shall register such transfer on the register
of Series F Preferred Stock.

     Section 9.5 Withholding

     To the extent required by applicable law, the Corporation may withhold
amounts for or on account of any taxes imposed or levied by or on behalf of any
taxing authority in the United States having jurisdiction over the Corporation
from any payments made pursuant to the Series F Preferred Stock.

     Section 9.6 Headings

     The headings of the Articles and Sections of this Certificate of
Designation are inserted for convenience only and do not constitute a part of
this Certificate of Designation.

     Section 9.7 Severability

     If any provision of this Certificate of Designation, or the application
thereof to any person or entity or any circumstance, is invalid or
unenforceable, (i) a suitable and equitable provision shall be substituted
therefor in order to carry out, so far as may be valid and enforceable, the
intent and purpose of such invalid or unenforceable provision, and (ii) the
remainder of this Certificate of Designation and the application of such
provision to other persons, entities or circumstances shall not be affected by
such invalidity or unenforceability, nor shall such invalidity or
unenforceability affect the validity or enforceability of such provision, or the
application thereof, in any other jurisdiction.

                            [SIGNATURE PAGE FOLLOWS.]

                                      -18-
<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designation to be signed by its duly authorized officers on March ___, 2000.

                                       COMMODORE APPLIED TECHNOLOGIES,
                                          INC.

                                       By: /s/   PAUL HANNESSON
                                          --------------------------------------
                                          Name:  Paul Hannesson
                                          Title: President

                                       By: /s/   JAMES M. DEANGELEIS
                                          --------------------------------------
                                          Name:  James M. DeAngeleis
                                          Title: Senior V.P.,
                                                 Chief Financial Officer

<PAGE>

                                                                         ANNEX I

                            FORM OF CONVERSION NOTICE

 TO: Commodore Applied Technologies, Inc.
     150 East 58th Street
     Suite 3400
     New York, NY 10155

     The undersigned owner of this Series F Convertible Preferred Stock (the
"Series F Preferred Stock") issued by Commodore Applied Technologies, Inc. (the
"Corporation") hereby irrevocably exercises its option to convert __________
shares of the Series F Preferred Stock into shares of the common stock, par
value $0.001 per share ("Common Stock"), of the Corporation in accordance with
the terms of the Certificate of Designation. The undersigned hereby instructs
the Corporation to convert the number of shares of the Series F Preferred Stock
specified above into Shares of Common Stock Issued at Conversion in accordance
with the provisions of Article 6 of the Certificate of Designation. The
undersigned directs that the Common Stock issuable and certificates therefor
deliverable upon conversion and the recertificated Series F Preferred Stock, if
any, not being surrendered for conversion hereby, together with any check in
payment for fractional Common Stock, be issued in the name of and delivered to
the undersigned unless a different name has been indicated below. All
capitalized terms used and not defined herein have the respective meanings
assigned to them in the Certificate of Designation. So long as the Series F
Preferred Stock shall have been surrendered for conversion hereby, the
conversion pursuant hereto shall be deemed to have been effected at the date and
time specified below, and at such time the rights of the undersigned as a Holder
of the Series F Preferred Stock shall cease and the Person or Persons in whose
name or names the Common Stock Issued at Conversion shall be issuable shall be
deemed to have become the holder or holders of record of the Common Shares
represented thereby and all voting and other rights associated with the
beneficial ownership of such Common Shares shall at such time vest with such
Person or Persons.

Date and time:_________________________

                                               ---------------------------------
                                                            Signature

Fill in for registration of Series F Preferred Stock:

________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
       Please print name and address (including zip code number)NEITHER THE WARRANTS REPRESENTED BY THIS CERTIFICATE NOR THE
          SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NEITHER THE
          WARRANTS NOR SUCH SHARES MAY BE OFFERED OR SOLD EXCEPT
          PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
          ACT, OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

                 COMMODORE APPLIED TECHNOLOGIES, INC.

          WARRANT FOR THE PURCHASE OF SHARES OF COMMON STOCK

No. 00-1                                                          113,475 Shares

     THIS CERTIFIES that, for value received, AVALON RESEARCH GROUP INC. (the
"Holder"), is entitled to subscribe for and purchase from COMMODORE APPLIED
TECHNOLOGIES, INC., a Delaware corporation (the "Company"), upon the terms and
conditions set forth herein, at any time from and after September 30, 2000, and
before 5:00 P.M. on March 15, 2005, New York City time (the "Exercise Period"),
One Hundred Thirteen Thousand Four Hundred Seventy Five (113,475) shares, par
value $.001 per share, of the Company ("Common Stock"), at an exercise price of
$1.93875 per share (the "Exercise Price"). As used herein the term "this
Warrant" shall mean and include this Warrant and any Warrant or Warrants
hereafter issued as a consequence of the exercise or transfer of this Warrant in
whole or in part.

     The number of shares of Common Stock issuable upon exercise of the Warrant
(the "Warrant Shares") and the Exercise Price may be adjusted from time to time
as hereinafter set forth.

     1. This Warrant may be exercised during the Exercise Period by the
surrender of this Warrant (with the form of election at the end hereof duly
executed) to the Company at its office as set forth in the form of election
attached hereto, or at such other place as is designated in writing by the
Company, together with a certified or bank cashier's check payable to the order
of the Company in an amount equal to the Exercise Price multiplied by the number
of respective Warrant Shares for which this Warrant is being exercised.

         2. Upon the exercise of the Holder's rights to purchase Warrant Shares,
the Holder shall be deemed to be the holder of record of the Warrant Shares
issuable upon such exercise, notwithstanding that the transfer books of the
Company shall then be closed or certificates

                                       1
<PAGE>

representing such Warrant Shares shall not then have been actually delivered to
the Holder. As soon as practicable after the exercise of this Warrant and
payment of the Exercise Price by the Holder, a certificate or certificates for
the Warrant Shares issuable upon such exercise, registered in the name of the
Holder or its designee, shall be issued by the Company to the Holder. If the
Warrant should be exercised in part only, the Company shall, upon surrender of
this Warrant for cancellation, execute and deliver a new Warrant evidencing the
right of the Holder to purchase the balance of the Warrant Shares (or portions
thereof) subject to purchase hereunder.

     3. The Company shall be entitled to treat the registered holder of any
Warrant on the Warrant Register as the Owner in fact thereof for all purposes
and shall not be bound to recognize any equitable or other claim to or interest
in such Warrant on the part of any other person, and shall not be liable for any
registration or transfer of Warrants which are registered or to be registered in
the name of a fiduciary or the nominee of a fiduciary unless made with the
actual knowledge that a fiduciary or nominee is committing a breach of trust in
requesting such registration or transfer, or with the knowledge of such facts
that its participation therein amounts to bad faith. This Warrant shall be
transferable only on the books of the Company upon delivery thereof duly
endorsed by the Holder or by his duly authorized attorney or representative, or
accompanied by proper evidence of succession, assignment, or authority to
transfer. In all cases or transfer by an attorney, executor, administrator,
guardian, or other legal representative, duly authenticated evidence of his or
its authority shall be produced. Upon any registration of transfer, the Company
shall deliver a new Warrant or Warrants to the person entitled thereto. The
Company shall have no obligation to cause Warrants to be transferred on its
books to any person if, in the opinion of counsel to the Company, such transfer
does not comply with the provisions of the Securities Act of 1933, as amended
(the "Act"), and the rules and regulations promulgated thereunder.

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

     5. (a) In case the Company shall at any time after the date the Warrants
were first issued (i) declare a dividend on the outstanding Common Stock payable
in shares of its capital stock, (ii) subdivide the outstanding Common Stock,
(iii) combine the outstanding Common Stock into a smaller number of shares, or
(iv) issue any shares of its capital stock by reclassification of the Common
Stock (including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing corporation), then, in each case,
the Exercise Price, and the number of Warrant Shares issuable upon exercise of
this Warrant, in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination, or reclassification, shall
be proportionately adjusted so that the Holder after such

                                       2
<PAGE>

time shall be entitled to receive the aggregate number and kind of shares which,
if such Warrant had been exercised immediately prior to such time, he would have
owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, combination, or reclassification. Such adjustment shall
be made successively whenever any event listed above shall occur.

     (b) No adjustment in the Exercise Price shall be required if such
adjustment is less than $.05; provided, however, that any adjustments which by
reason of this Section 5 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 5 shall be made to the nearest cent or to the nearest one-thousandth of
a share, as the case may be.

     (c) In any case in which this Section 5 shall require that an adjustment in
the Exercise Price be made effective as of a record date for a specified event,
the Company may elect to defer, until the occurrence of such event, issuing to
the Holder, if the Holder exercised this Warrant after such record date, the
shares of Common Stock, if any, issuable upon such exercise over and above the
shares of Common Stock, if any, issuable upon such exercise on the basis of the
Exercise Price in effect prior to such adjustment; provided, however, that the
Company shall deliver to the Holder a due bill or other appropriate instrument
evidencing the Holder's right to receive such additional shares upon the
occurrence of the event requiring such adjustment

     (d) Whenever there shall be an adjustment as provided in this Section 5,
the Company shall promptly cause written notice thereof to be sent by registered
mail, postage prepaid, to the Holder, at its address as it shall appear in the
Warrant Register, which notice shall be accompanied by an officer's certificate
setting forth the number of Warrant Shares purchasable upon the exercise of this
Warrant and the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment and the computation thereof,
which officer's certificate shall be conclusive evidence of the correctness of
any such adjustment absent manifest error.

     6. (a) In case of any consolidation with or merger of the Company with or
into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease, or conveyance to another corporation of the property and assets of any
nature of the Company as an entirety or substantially as an entirety, such
successor, leasing, or purchasing corporation, as the case may be, shall (i)
execute with the Holder an agreement providing that the Holder shall have the
right thereafter to receive upon exercise of this Warrant solely the kind and
amount of shares of stock and other securities, property, cash, or any
combination thereof receivable upon such consolidation, merger, sale, lease, or
conveyance by a holder of the number of shares of Common Stock for which this
Warrant might have been exercised immediately prior to such consolidation,
merger, sale, lease, or conveyance and (ii) make effective provision in its
certificate of incorporation or otherwise, if necessary, to effect such
agreement. Such agreement shall provide for adjustments which shall be as nearly
equivalent as practicable to the adjustments in Section 5.

                                       3
<PAGE>

     (b) In case of any reclassification or change of the shares of Common Stock
issuable upon exercise of this Warrant (other than a change in par value or from
no par value to a specified par value, or as a result of a subdivision or
combination, but including any change in the shares into two or more classes or
series of shares), or in case of any consolidation or merger of another
corporation into the Company in which the Company is the continuing corporation
and in which there is a reclassification or change (including a change to the
right to receive cash or other property) of the shares of Common Stock (other
than a change in par value, or from no par value to a specified par value, or as
a result of a subdivision or combination, but including any change in the shares
into two or more classes or series of shares), the Holder shall have the right
thereafter to receive upon exercise of this Warrant solely the kind and amount
of shares of stock and other securities, property, cash, or any combination
thereof receivable upon such reclassification, change, consolidation, or merger
by a holder of the number of shares of Common Stock for which this Warrant might
have been exercised immediately prior to such reclassification, change,
consolidation, or merger. Thereafter, appropriate provision shall be made for
adjustments which shall be as nearly equivalent as practicable to the
adjustments in Section 5.

     (c) The above provisions of this Section 6 shall similarly apply to
successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales, leases, or conveyances.

     7. In case at any time the Company shall propose:

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

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

          (c) to effect any reclassification or change of outstanding shares of
     Common Stock, or any consolidation, merger, sale, lease, or conveyance of
     property, described in Section 6; or

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

          (e) to take any other action which would cause an adjustment to the
     Exercise Price;

then, and in any one or more of such cases, the Company shall give written
notice thereof, by registered mail, postage prepaid, to the Holder at the
Holder's address as it shall appear in the

                                       4
<PAGE>

Warrant Register, mailed at least 15 days prior to (i) the date as of which the
holders of record of shares of Common Stock to be entitled to receive any such
dividend, distribution, rights, warrants, or other securities are to be
determined, (ii) the date on which any such reclassification, change of
outstanding shares of Common Stock, consolidation, merger, sale, lease,
conveyance of property, liquidation, dissolution, or winding-up is expected to
become effective, and the date as of which it is expected that holders of record
of shares of Common Stock shall be entitled to exchange their shares for
securities or other property, if any, deliverable upon such reclassification,
change of outstanding shares, consolidation, merger, sale, lease, conveyance of
property, liquidation, dissolution, or winding-up, or (iii) the date of such
action which would require an adjustment to the Exercise Price.

     8. (a) If, at any time prior to the expiration of the Exercise Period, the
Company proposes to file with the Securities and Exchange Commission (the
"Commission") a registration statement under the Act on any form (other than a
registration statement on Form S-4, Form S-8, or any successor form) for the
general registration of securities to be sold for cash (a "Registration
Statement") with respect to any shares of Common Stock, either for its own
account or for the account of any stockholder of the Company, it will give
written notice (a "Piggyback Notice") to the Holder at least 30 days before the
initial filing of such Registration Statement, which Piggyback Notice shall set
forth the intended method of disposition of the securities proposed to be
registered. The Piggyback Notice shall offer to include in such filing such
aggregate number of Warrant Shares held by the Holder as the Holder may request.
The Holder shall advise the Company in writing within 10 days after the date of
receipt of the Piggyback Notice from the Company whether the Holder intends to
have any Warrant Shares registered under the Registration Statement, setting
forth the number of such Warrant Shares for which registration is requested. The
Company shall thereupon include in such Registration Statement the aggregate
number of Warrant Shares held by the Holder for which registration is so
requested, subject to the next sentence. If a Registration Statement involves an
underwritten offering and the managing underwriter advises the Company in
writing that, in its opinion, the number of securities requested to be included
in such Registration Statement exceeds the number which can be sold in such
offering without adversely affecting the offering, the Company will include in
such Registration Statement the number of such securities which the Company is
so advised can be sold in such offering without adversely affecting the
offering, determined as follows: (i) first, the securities proposed by the
Company to be sold for it own account; and (ii) second, any Warrant Shares
requested to be included in such registration by the Holder and any other
securities of the Company pro rata among the holders thereof requesting such
registration on the basis of the number of shares of such securities requested
to be included by such holders. As used herein, "Registrable Securities" shall
mean the Warrant Shares that have not been previously sold pursuant to a
registration statement or Rule 144 promulgated under the Act.

     (b) In the event of a registration pursuant to the provisions of this
Section 8, the Company shall use its best efforts to cause the Registrable
Securities so registered to be registered or qualified for sale under the
securities or blue sky laws of such jurisdictions as the Holder may reasonably
request; provided, however, that the Company shall not be required to

                                       5
<PAGE>

qualify to do business in any state by reason of this Section 8(b) in which it
is not otherwise required to qualify to do business.

     (c) The Company shall keep effective any registration or qualification
contemplated by this Section 8 and shall from time to time amend or supplement
each applicable registration statement, preliminary prospectus, final
prospectus, application, document, and communication for such period of time as
shall be required to permit the Holder to complete the offer and sale of the
Registrable Securities covered thereby. The Company shall in no event be
required to keep any such registration or qualification in effect for a period
in excess of nine months from the date on which the Holder is first free to sell
such Registrable Securities; provided, however, that, if the Company is required
to keep any such registration or qualification in effect with respect to
securities other than the Registrable Securities beyond such period, the Company
shall keep such registration or qualification in effect as it relates to the
Registrable Securities for so long as such registration or qualification remains
or is required to remain in effect in respect of such other securities.

     (d) In the event of a registration pursuant to the provisions of this
Section 8, the Company shall furnish to the Holder such number of copies of the
Registration Statement and of each amendment and supplement thereto (in each
case, including all exhibits), such reasonable number of copies of each
prospectus contained in such registration statement and each supplement or
amendment thereto (including each preliminary prospectus), all of which shall
conform to the requirements of the Act and the rules and regulations thereunder,
and such other documents, as the Holder may reasonably request to facilitate the
disposition of the Registrable Securities included in such registration.

     (e) In the event of a registration pursuant to the provisions of this
Section 8, the Company shall furnish the Holder of any Registrable Securities so
registered with an opinion of its counsel (reasonably acceptable to the Holder)
to the effect that (i) the registration statement has become effective under the
Act and no order suspending the effectiveness of the registration statement,
preventing or suspending the use of the registration statement, any preliminary
prospectus, any final prospectus, or any amendment or supplement thereto has
been issued, nor has the Commission or any securities or blue sky authority of
any jurisdiction instituted or threatened to institute any proceedings with
respect to such an order, (ii) the registration statement and each prospectus
forming a part thereof (including each preliminary prospectus), and any
amendment or supplement thereto, complies as to form with the Act and the rules
and regulations thereunder, and (iii) such counsel has no knowledge of any
material misstatement or omission in such registration statement or any
prospectus, as amended or supplemented. Such opinion shall also state the
jurisdictions in which the Registrable Securities have been registered or
qualified for sale pursuant to the provisions of Section 8(b).

     (f) In the event of a registration pursuant to the provision of this
Section 8, the Company shall enter into a cross-indemnity agreement and a
contribution agreement, each in customary form, with each underwriter, if any,
and, if requested, enter into an underwriting

                                       6
<PAGE>

agreement containing conventional representations, warranties, allocation of
expenses, and customary closing conditions, including, but not limited to,
opinions of counsel and accountants' cold comfort letters, with any underwriter
who acquires any Registrable Securities.

     (g) In the event of a registration pursuant to the provisions of this
Section 8:

          (i) The Holder shall furnish to the Company in writing such
     appropriate information (relating to the Holder and the intention of such
     Holder as to proposed methods of sale or other disposition of its shares of
     Common Stock) and the identity of and compensation to be paid to any
     proposed underwriters to be employed in connection therewith as the
     Company, any underwriter, or the Commission or any other regulatory
     authority may request;

          (ii) The Holder shall enter into the usual and customary form of
     underwriting agreement agreed to by the Company and any underwriter with
     respect to any such offering, if required, and such underwriting agreement
     shall contain the customary rights of indemnity between the Company, the
     underwriters, and the Holder;

          (iii) The Holder shall agree that he shall execute, deliver and/or
     file with or supply the Company, any underwriters, the Commission and/or
     any state or other regulatory authority such information, documents,
     representations, undertakings and/or agreements necessary to carry out the
     provisions of the registration covenants contained in this Section 8 and/or
     to effect the registration or qualification of his or its Registrable
     Securities under the Act and/or any of the laws and regulations of any
     state of governmental instrumentality;

          (iv) the Company's obligation to include any Registrable Securities in
     a registration statement shall be subject to the written agreement of the
     Holder thereof to offer such securities in the same manner and on the same
     terms and conditions as the other securities of the same class are being
     offered pursuant to the registration statement, if such shares are being
     underwritten;

          (v) In the event that all the Registrable Securities have not been
     sold on or prior to the expiration of the period specified in Section 8(c)
     above, the Company may de-register by post-effective amendment any
     Registrable Securities covered by the registration statement, but not sold
     on or prior to such date. The Company agrees that it will notify the Holder
     of Registrable Securities of the filing and effective date of such
     post-effective amendment; and

          (vi) The Holder agrees that upon notification by the Company that the
     prospectus in respect to any public offering covered by the provisions
     hereof is in need of revision, such Holder shall immediately upon receipt
     of such notification (x) cease to offer or sell any securities of the
     Company which must be accompanied by such prospectus, (y) return all such
     prospectuses in such Holder's hands to the Company, and (z) not offer or
     sell any securities

                                       7
<PAGE>

     of the Company until such Holder has been provided with a current
     prospectus and the Company has given such Holder notification permitting
     such Holder to resume offers and sales.

     (h) The Company agrees that until all the Registrable Securities have been
sold under a registration statement or pursuant to Rule 144 under the Act, it
shall keep current in filing all reports, statements and other materials
required to be filed with the Commission to permit holders of the Registrable
Securities to sell such securities under Rule 144.

     9. (a) Subject to the conditions set forth below, the Company agrees to
indemnify and hold harmless the Holder, its officers, directors, partners,
employees, agents and counsel, and each person, if any, who controls any such
person within the meaning of Section 15 of the Act or Section 20(a) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), from and
against any and all loss, liability, charge, claim, damage, and expense
whatsoever (which shall include, for all purposes of this Section 9, but not be
limited to, attorneys' fees and any and all reasonable expense whatsoever
incurred in investigating, preparing, or defending against any litigation,
commenced or threatened, or any claim whatsoever, and any and all amounts paid
in settlement of any claim or litigation), as and when incurred, arising out of,
based upon, or in connection with: (i) any untrue statement or alleged untrue
statement of a material fact contained (A) in any registration statement,
preliminary prospectus, or final prospectus (as from time to time amended and
supplemented), or any amendment or supplement thereto, relating to the sale of
any of the Registrable Securities, or (B) in any application or other document
or communication (in this Section 9 collectively called an "application")
executed by or on behalf of the Company or based upon written information
furnished by or on behalf of the Company filed in any jurisdiction in order to
register or qualify any of the Registrable Securities under the securities or
blue sky laws thereof or filed with the Commission or any securities exchange;
or (ii) any omission or alleged omission to state a material fact required to be
stated in any document referenced in clause (A) or (B) above or necessary to
make the statements therein not misleading, unless such statement or omission
was made in reliance upon and in conformity with written information furnished
to the Company with respect to such Holder by or on behalf of such person
expressly for inclusion in any registration statement, preliminary prospectus,
or final prospectus, or any amendment or supplement thereto, or in any
application, as the case may be; or (iii) any breach of any representation,
warranty, covenant, or agreement of the Company contained in this Warrant. The
foregoing agreement to indemnify shall be in addition to any liability the
Company may otherwise have, including liabilities arising under this Warrant.

     If any action is brought against the Holder or any of its officers,
directors, partners, employees, agents, or counsel, or any controlling persons
of such person (an "indemnified party") in respect of which indemnity may be
sought against the Company pursuant to the foregoing paragraph, such indemnified
party or parties shall promptly notify the Company in writing of the institution
of such action (but the failure so to notify shall not relieve the Company from
any liability other than pursuant to this Section 9(a), except to the extent it
may have been prejudiced in any material respect by such failure) and the
Company shall promptly

                                       8
<PAGE>

assume the defense of such action, including the employment of counsel
(reasonably satisfactory to such indemnified party or parties) and payment of
expenses. Such indemnified party or parties shall have the right to employ its
or their own counsel in any such case, but the fees and expenses of such counsel
shall be at the expense of such indemnified party or parties unless the
employment of such counsel shall have been authorized in writing by the Company
in connection with the defense of such action or the Company shall not have
promptly employed counsel reasonably satisfactory to such indemnified party or
parties to have charge of the defense of such action or such indemnified party
or parties shall have reasonably concluded that there may be one or more legal
defenses available to it or them or to other indemnified parties which are
different from or additional to those available to the Company, in any of which
events such fees and expenses shall be borne by the Company and the Company
shall not have the right to direct the defense of such action on behalf of the
indemnified party or parties. Anything in this Section 9(a) to the contrary
notwithstanding, the Company shall not be liable for any settlement of any such
claim or action effected without its written consent, which shall not be
unreasonably withheld. The Company shall not, without the prior written consent
of each indemnified party that is not released as described in this sentence,
settle or compromise any action, or permit a default or consent to the entry of
judgment in or otherwise seek to terminate any pending or threatened action, in
respect of which indemnity may be sought hereunder (whether or not any
indemnified party is a party thereto), unless such settlement, compromise,
consent, or termination includes an unconditional release of each indemnified
party from all liability in respect of such action. The Company agrees promptly
to notify the Holder of the commencement of any litigation or proceedings
against the Company or any of its officers or directors in connection with the
sale of any Registrable Securities or any preliminary prospectus, prospectus,
registration statement, or amendment or supplement thereto, or any application
relating to any sale of any Registrable Securities.

     (b) The Holder agrees to indemnify and hold harmless the Company, each
director of the Company, each officer of the Company who shall have signed any
registration statement covering Registrable Securities held by the Holder, each
other person, if any, who controls the Company within the meaning of Section 15
of the Act or Section 20(a) of the Exchange Act, and its or their respective
counsel, to the same extent as the foregoing indemnity from the Company to the
Holder in Section 9(a), but only with respect to statements or omissions, if
any, made in any registration statement, preliminary prospectus, or final
prospectus (as from time to time amended and supplemented), or any amendment or
supplement thereto, or in any application, in reliance upon and in conformity
with written information furnished to the Company with respect to the Holder by
or on behalf of the Holder expressly for inclusion in any such registration
statement, preliminary prospectus, or final prospectus, or any amendment or
supplement thereto, or in any application, as the case may be. If any action
shall be brought against the Company or any other person so indemnified based on
any such registration statement, preliminary prospectus, or final prospectus, or
any amendment or supplement thereto, or in any application, and in respect of
which indemnity may be sought against the Holder pursuant to this Section 9(b),
the Holder shall have the rights and duties given to the Company,

                                       9
<PAGE>

and the Company and each other person so indemnified shall have the rights and
duties given to the indemnified parties, by the provisions of Section 9(a).

     (c) To provide for just and equitable contribution, if (i) an indemnified
party makes a claim for indemnification pursuant to Section 9(a) or 9(b)
(subject to the limitations thereof) but it is found in a final judicial
determination, not subject to further appeal, that such indemnification may not
be enforced in such case, even though this Agreement expressly provides for
indemnification in such case, or (ii) any indemnified or indemnifying party
seeks contribution under the Act, the Exchange Act or otherwise, then the
Company (including for this purpose any contribution made by or on behalf of any
director of the Company, any officer of the Company who signed any such
registration statement, any controlling person of the Company, and its or their
respective counsel), as one entity, and the Holder of the Registrable Securities
included in such registration in the aggregate (including for this purpose any
contribution by or on behalf of an indemnified party), as a second entity, shall
contribute to the losses, liabilities, claims, damages, and expenses whatsoever
to which any of them may be subject, on the basis of relevant equitable
considerations such as the relative fault of the Company and such Holder in
connection with the facts which resulted in such losses, liabilities, claims,
damages, and expenses. The relative fault, in the case of an untrue statement,
alleged untrue statement, omission, or alleged omission, shall be determined by,
among other things, whether such statement, alleged statement, omission, or
alleged omission relates to information supplied by the Company or by such
Holder, and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement, alleged statement, omission,
or alleged omission. The Company and the Holder agree that it would be unjust
and inequitable if the respective obligations of the Company and the Holder for
contribution were determined by pro rata or per capita allocation of the
aggregate losses, liabilities, claims, damages, and expenses (even if the Holder
and the other indemnified parties were treated as one entity for such purpose)
or by any other method of allocation that does not reflect the equitable
considerations referred to in this Section 9(c). No person guilty of a
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who is not guilty of such
fraudulent misrepresentation. Anything in this Section 9(c) to the contrary
notwithstanding, no party shall be liable for contribution with respect to the
settlement of any claim or action effected without its written consent. This
Section 9(c) is intended to supersede any right to contribution under the Act,
the Exchange Act or otherwise.

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

                                       10
<PAGE>

     11. Prior to the registration of the Warrant Shares under Section 8 hereof,
certificates evidencing the Warrant Shares issued upon exercise of the Warrant
shall bear the following legend:

               "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE
               NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
               1933, AS AMENDED. SUCH SHARES MAY NOT BE OFFERED
               OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
               REGISTRATION STATEMENT UNDER SUCH ACT, OR AN
               EXEMPTION FROM REGISTRATION UNDER SUCH ACT."

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

     13. The Holder of any Warrant shall not have, solely on account of such
status, any rights of a stockholder of the Company, either at law or in equity,
or to any notice of meetings of stockholders or of any other proceedings of the
Company, except as provided in this Warrant.

     14. Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested or sent by Federal Express, Express Mail, or similar overnight
delivery or courier service or delivered (in person or by telecopy, telex, or
similar telecommunications equipment) against receipt to the party to whom it is
to be given, if sent to the Company, at: 150 East 58th Street, Suite 3400, New
York, New York 10155, Attention: Assistant Secretary and General Counsel; or if
sent to the Holder, at the Holder's address as it shall appear on the Warrant
Register; or to such other address as the party shall have furnished in writing
in accordance with the provisions of this Section 14. Any notice or other
communication given by certified mail shall be deemed given at the time of
certification thereof, except for a notice changing a party's address which will
be deemed given at the time of receipt thereof. Any notice given by other means
permitted by this Section 14 shall be deemed given at the time of receipt
thereof.

     15. This Warrant shall be binding upon the Company and its successors and
assigns and shall inure to the benefit of the Holder and its successors and
assigns.

     16. This Warrant shall be construed in accordance with the laws of the
State of New York applicable to contracts made and performed within such State,
without regard to principles of conflicts of law.

                                       11
<PAGE>

     17. The Company irrevocably consents to the jurisdiction of the courts of
the State of New York and of any federal court located in such State in
connection with any action or proceeding arising out of or relating to this
Warrant, any document or instrument delivered pursuant to, in connection with or
simultaneously with this Warrant, or a breach of this Warrant or any such
document or instrument. In any such action or proceeding, the Company waives
personal service of any summons, complaint or other process.

Dated: As of March 15, 2000      COMMODORE APPLIED TECHNOLOGIES, INC.

                                 By: /s/ PAUL E. HANNESSON
                                     ------------------------
                                 Name: Paul E. Hannesson

                                 Title: President and Chief Executive Officer

                                       12
<PAGE>

                               FORM OF ASSIGNMENT

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

     FOR VALUE RECEIVED, ______________________________ hereby sells, assigns,
and transfers unto _____________________ a Warrant to purchase Shares, par value
$.001 per share, of Commodore Applied Technologies, Inc. (the "Company"),
together with all right, title, and interest therein, and does hereby
irrevocably constitute and appoint ___________________ attorney to transfer such
Warrant on the books of the Company, with full power of substitution.

Dated: ________________________

                                    Signature_________________________________

                                     NOTICE

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

                                       13
<PAGE>

To: Commodore Applied Technologies, Inc.
    150 East 58th Street, Suite 3400
    New York, New York 10155

                              ELECTION TO EXERCISE

     The undersigned hereby exercises its rights to purchase ______________
Warrant Shares covered by the within warrant and tenders payment herewith in the
amount of $ _____________ in accordance with the terms thereof, and requests
that certificates for such securities be issued in the name of, and delivered
to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
                    (Print Name, Address and Social Security
                          or Tax Identification Number)

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

Dated:_________________________             Name________________________________
                                                          (Print)

Address:_______________________
                                               _________________________________
                                                         (Signature)

                                       14

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