Document:

<PAGE>   1
                                                                    Exhibit 10.1

                            LIMITED CONSENT & WAIVER

                          Dated as of February 15, 2001

     Reference is made to (i) that certain Credit Agreement dated as of June 30,
1999, among TeleSpectrum Worldwide, Inc., a Delaware corporation (the
"BORROWER"), the financial institutions parties thereto (the "LENDERS"), BNP
Paribas, as collateral agent (the "AGENT"), and Bank of America, N.A., as
administrative agent for the Lenders (the "ADMINISTRATIVE AGENT") (as amended,
restated, supplemented or otherwise modified from time to time, the "CREDIT
AGREEMENT"), and (ii) that certain Amendment No. 7 & Limited Waiver to the
Credit Agreement dated as of November 17, 2000, among the Borrower, the Lenders,
the Agent and the Administrative Agent (as modified by that certain Consent
Regarding Certain Obligations Under Amendment No. 7 & Limited Waiver To The
Credit Agreement dated as of January 16, 2001, "AMENDMENT NO. 7"). Capitalized
terms used herein without definition herein shall have the meanings assigned to
such terms in the Credit Agreement and Amendment No. 7, as applicable.

                                    RECITALS

     WHEREAS, the Borrower has requested that, in order to allow sufficient time
to restructure the Obligations of the Loan Parties to the Lenders under the Loan
Documents, the Agent and the Lenders extend the Waiver Termination Date; and

     WHEREAS, the Agent and the Lenders have agreed, subject to and on the terms
and conditions set forth in this Limited Consent & Waiver (this "CONSENT"), to
give their limited consent as herein provided;

     NOW, THEREFORE, it is agreed as follows:

               1. Subject to the agreements, terms and conditions set forth
          herein, including, without limitation, the satisfaction of the
          conditions precedent set forth in Section 16 below, and in reliance on
          the representations and warranties of the Borrower herein contained,
          the Borrower, the Agent and the Lenders hereby agree that the Waiver
          Termination Date shall be the earlier of (i) the close of business on
          Friday, March 30, 2001, or (ii) the date of occurrence of a Waiver
          Period Default.

<PAGE>   2

               2. Subject to the agreements, terms and conditions set forth
          herein, including, without limitation, the satisfaction of the
          conditions precedent set forth in Section 16 below, and in reliance on
          the representations and warranties of the Borrower herein contained,
          the Agent and the Required Lenders hereby waive any Default or Event
          of Default which may have occurred and be continuing pursuant to
          Section 6.01(k) of the Credit Agreement solely as a result of any
          Change of Control which may have occurred as a result of the Initial
          Directors of the Borrower ceasing for any reason to constitute a
          majority of the board of directors of the Borrower.

               3. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower and
          its Subsidiaries hereby agree not to (i) make any Capital Expenditures
          during the Waiver Period, except as specifically provided in the Cash
          Flow Forecast, a copy of which is annexed hereto as Exhibit A, and
          (ii) incur any Obligations relating to Capital Expenditures, in each
          case without the written consent of the Agent and Required Lenders,
          which consent shall not be unreasonably withheld, and, whether or not
          such consent is granted, the Agent and the Required Lenders shall in
          any event respond to the Borrower's request within two (2) Business
          Days.

               4. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower, the
          Agent and the Lenders hereby agree that, solely during the Waiver
          Period, the reference to "February 15, 2001" contained in Section
          2.04(a) of the Credit Agreement shall mean "March 30, 2001".

               5. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower, the
          Agent and the Required Lenders hereby agree that clause (a) of the
          definition of "Waiver Period Default" in Section 1 of the Seventh
          Amendment is hereby deleted in its entirety.

               6. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower hereby
          represents and warrants that it has received no written or oral
          proposals for either (a) the sale, in whole or in part, of its
          business, or (b) the refinancing of all or substantially all of its
          indebtedness (collectively, a "PROPOSAL"). The Borrower further
          covenants that it will provide to all Lenders who execute and deliver
          a counterpart to this Consent (i) copies of any written Proposal
          promptly after receipt by the Borrower, and (ii) a written summary of
          any oral Proposal promptly after receipt thereof. The Borrower further
          covenants that the Agent and each Lender shall have full and direct
          access to any investment banker and/or financial advisor working for
          or

<PAGE>   3

          on behalf of the Borrower, including, without limitation, Birch
          Advisors, LLC ("BIRCH").

               7. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement or in Amendment No.
          7, the Borrower hereby agrees to continue to accrue for payment to the
          Agent for the ratable account of the Lenders that waiver and amendment
          fee (the "WAIVER Fee") equal to 0.50% of all Advances outstanding as
          of November 17, 2000, for each 30 day period (or part thereof) during
          which the Seventh Amendment is in effect.

               8. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower hereby
          agrees that during the Waiver Period neither the Borrower nor any of
          its Subsidiaries shall prepay any Debt (other than Advances and
          Obligations of any Loan Party under the Loan Documents), or pay, repay
          or prepay any Obligations of the Borrower or any of its Subsidiaries
          in connection with the MDC Subordinated Debt, the MDC Subordinated
          Notes, the TARP Earnout, or any earn-outs or other similar payments,
          or any management fees or related expenses attributable to the
          Borrower or any of its Subsidiaries.

               9. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Agent and the
          Lenders reserve the right to, at any time during the Waiver Period,
          engage a management consultant. The Borrower hereby agrees to pay all
          reasonable costs and expenses incurred by such management consultants,
          and such costs and expenses shall be a part of the Obligations.

               10. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower hereby
          agrees to deliver to the Agent and the Lenders (i) promptly upon
          receipt thereof, but in no event later than March 15, 2001, copies of
          any financial audit (or drafts thereof), which is in substantially
          final form, relating to the Borrower's business for the year 2000, and
          (ii) upon the completion and public disclosure of such audit, copies
          of any reports relating to the Borrower's earnings.

               11. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower hereby
          agrees to pay all fees relating to (i) O'Melveny & Myers LLP, as
          counsel to the Agent and the Lenders, and (ii) FTI/Policano & Manzo,
          as financial advisor to the Agent and the Lenders, within thirty (30)
          days of the date of such invoice.

<PAGE>   4

               12. In consideration of the accommodations provided by the Agent
          and the Lenders in Sections 1 and 2 above and notwithstanding anything
          to the contrary contained in the Credit Agreement, the Borrower hereby
          represents, warrants and agrees that no fee shall be due or payable to
          Birch or any other financial advisor or consultant in connection with
          this Consent.

               13. On and after the Effective Date (as defined below), each
          reference in the Credit Agreement to "this Agreement", "hereunder",
          "hereof", "herein" or words of like import referring to the Credit
          Agreement, and each reference in the other Loan Documents to the
          "Credit Agreement", "thereunder", "thereof" or words of like import
          referring to the Credit Agreement, shall mean and be a reference to
          the Credit Agreement after giving effect to this Consent.

               14. Without limiting the generality of the provisions of Section
          8.01 of the Credit Agreement, the extensions, waivers and
          modifications set forth herein shall be limited precisely as written
          and relate solely to the aforementioned obligations of the Borrower
          pursuant to the Credit Agreement and Amendment No. 7 in the manner and
          to the extent described above, and nothing in this Consent shall be
          deemed to (a) constitute a waiver of compliance by the Borrower with
          respect to the Credit Agreement or Amendment No. 7 in any other
          instance, or any other term, provision or condition of the Credit
          Agreement, Amendment No. 7 or any other instrument or agreement
          referred to therein, or (b) prejudice any right or remedy that the
          Agent, the Administrative Agent or any Lender may now have or may have
          in the future under or in connection with the Credit Agreement,
          Amendment No. 7 or any other instrument or agreement referred to
          therein. Except as expressly set forth herein, the terms, provisions
          and conditions of the Credit Agreement, Amendment No. 7 and the other
          Loan Documents shall remain in full force and effect and in all other
          respects are hereby ratified and confirmed.

               15. In order to induce the Agent, the Administrative Agent and
          the Lenders to enter into this Consent, the Borrower, by its execution
          of a counterpart of this Consent, represents and warrants that after
          giving effect to this Consent (a) no Event of Default or Default
          exists under the Credit Agreement (other than those waived pursuant to
          Section 1(i) and (ii) of Amendment No. 7 and Section 2 hereof), (b)
          all representations and warranties contained in the Credit Agreement
          and the other Loan Documents are true, correct and complete in all
          material respects on and as of the date hereof except to the extent
          such representations and warranties specifically relate to an earlier
          date, in which case they were true, correct and complete in all
          material respects on and as of such earlier date, and (c) the Borrower
          has performed all agreements to be performed on its part as set forth
          in the Credit Agreement except as specifically modified hereby.

               16. This Consent may be executed in any number of counterparts
          and by different parties hereto in separate counterparts, each of
          which when so executed and delivered shall be deemed an original, but
          all such counterparts
<PAGE>   5

          together shall constitute but one and the same instrument. This
          Consent shall become effective (the date of such effectiveness being
          the "EFFECTIVE DATE") upon the date that each of the following
          conditions shall have been satisfied:

          (a)(i) the Borrower and each Lender shall have executed and delivered
     counterparts of this Consent, (ii) each Guarantor shall each have executed
     and delivered counterparts of the Acknowledgement and Consent of Credit
     Support Parties annexed hereto, and (iii) the Borrower and the Agent shall
     have received written or telephonic notification of such execution and
     authorization of delivery thereof; and

          (b) the Borrower shall have paid all fees relating to (i) O'Melveny &
     Myers LLP, as counsel to the Agent and the Lenders, and (ii) FTI/Policano &
     Manzo, as financial advisor to the Agent and the Lenders, which are, as of
     February 15, 2001, outstanding for more than thirty (30) days; and

          (c) the Agent shall have received from the Borrower for the benefit of
     the Lenders, copies of all documentation relating to the TARP Earnout and
     the MDC Subordinated Debt, including executed copies of the MDC
     Subordinated Notes and the MDC Subordination Agreement; and

          (d) the Agent shall have received from the Borrower for the benefit of
     the Lenders, copies of all documentation relating to (i) the engagement of
     Birch Advisors, LLC by the Borrower or Peter Pierce, (ii) the engagement or
     retention of Peter Pierce, Chris Williams, Joe Nezi and Kurt Dinkelacker,
     and (iii) the engagement of any other financial advisors and/or consultants
     retained by the Borrower; and

          (e) the Borrower shall have (i) executed and delivered to the Agent,
     for the benefit of the Lenders, that certain Pledge Supplement dated as of
     February 15, 2001, substantially in the form of Exhibit B annexed hereto,
     pursuant to which the Borrower shall pledge to the Agent, for the benefit
     of the Lenders, (x) the Borrower's 72% ownership interest in eSatisfy (the
     "ESATISFY SHARES"), and (y) all indebtedness owed to the Borrower or any of
     its Subsidiaries by eSatisfy, and (ii) delivered to the Agent, for the
     benefit of the Lenders, (x) the eSatisfy Shares, together with appropriate
     stock powers duly executed in blank, and (y) all instruments evidencing any
     indebtedness owed to the Borrower or any Subsidiary by eSatisfy.

     THIS CONSENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

                  [Remainder of page left blank intentionally.]

<PAGE>   6
                  IN WITNESS WHEREOF, the parties hereto have caused this
Consent to be duly executed and delivered by its respective officer thereunto
duly authorized as of the date first written above.

BORROWER:
                                        TELESPECTRUM WORLDWIDE, INC.

                                        By: /s/ KURT DINKELACKER
                                            ------------------------------------
                                            Name:   KURT DINKELACKER
                                            Title:  CHIEF FINANCIAL OFFICER

  AGENTS AND LENDERS:
                                        BNP PARIBAS,
                                        individually and as Agent

                                        By: /s/ AMY W. KIRSCHNER
                                            ------------------------------------
                                            Name:   AMY W. KIRSCHNER
                                            Title:  VICE PRESIDENT

                                        BANK OF AMERICA, N.A.,
                                        individually and as Administrative Agent

                                        By: /s/ MARLENE M. TUMA
                                            ------------------------------------
                                            Name:   MARLENE M. TUMA
                                            Title:  VICE PRESIDENT

                                        FLEET NATIONAL BANK (f/k/a
                                        BankBoston, N.A.).

                                        By: /s/ G. CHRISTOPHER MILLER
                                            ------------------------------------
                                            Name:   G. CHIRISTOPHER MILLER
                                            Title:  VICE PRESIDENT

<PAGE>   7

                                      IBJ WHITEHALL BANK & TRUST
                                      COMPANY

                                      By: /s/ PATRICIA G. MCCORMACK
                                          --------------------------------------
                                          Name:  PATRICIA G. MCCORMACK
                                          Title: MANAGING DIRECTOR

                                       VAN KAMPEN PRIME RATE
                                       INCOME TRUST

                                      By: /s/ BRIAN T. BUSCHER
                                          --------------------------------------
                                          Name:  BRIAN T. BUSCHER
                                          Title: MANAGER-OPERATIONS & COMPLIANCE

                                      VAN KAMPEN SENIOR FLOATING RATE FUND

                                      By: /s/ BRIAN T. BUSCHER
                                          --------------------------------------
                                          Name:  BRIAN T. BUSCHER
                                          Title: MANAGER-OPERATIONS & COMPLIANCE

                                      VAN KAMPEN SENIOR INCOME TRUST

                                      By: /s/ BRIAN T. BUSCHER
                                          --------------------------------------
                                          Name:  BRIAN T. BUSCHER
                                          Title: MANAGER-OPERATIONS & COMPLIANCE

                                      WELLS FARGO BANK, N.A.

                                      By: /s/ RAZIA DAMJI
                                          --------------------------------------
                                          Name:  RAZIA DAMJI
                                          Title: VICE PRESIDENT

                                      FIRST SOURCE FINANCIAL, LLP
                                      By:  First Source Financial, Inc.,
                                      its agent/manager

                                      By: /s/ JEFF A. CERNY
                                          -------------------------------------
                                          Name:  JEFF A. CERNY
                                          Title: SENIOR VICE PRESIDENT

                                      KZH ING-1 LLC

                                      By: /s/ KIMBERLY ROWE
                                          -------------------------------------
                                          Name:  KIMBERLY ROWE
                                          Title: AUTHORIZED AGENT
<PAGE>   8
                                        KZH ING-2 LLC

                                        By: /s/ KIMBERLY ROWE
                                            ------------------------------------
                                            Name:  KIMBERLY ROWE
                                            Title: AUTHORIZED AGENT

                                        KZH ING-3 LLC

                                        By: /s/ KIMBERLY ROWE
                                            ------------------------------------
                                            Name:  KIMBERLY ROWE
                                            Title: AUTHORIZED AGENT

                                        ARCHIMEDES FUNDING, L.L.C.
                                        By:  ING Capital Advisors LLC,
                                        as Collateral Manager

                                        By: /s/ AMY GRENIER
                                            ------------------------------------
                                            Name:  AMY GRENIER
                                            Title: VICE PRESIDENT

                                        ARCHIMEDES FUNDING II, LTD.
                                        By:  ING Capital Advisors LLC,
                                        as Collateral Manager

                                        By: /s/ AMY GRENIER
                                            ------------------------------------
                                            Name:  AMY GRENIER
                                            Title: VICE PRESIDENT

                                        FIRST DOMINION FUNDING III

                                        By: /s/ ANDREW MARSHAK
                                            ------------------------------------
                                            Name:  ANDREW MARSHAK
                                            Title: AUTHORIZED SIGNATORY<PAGE>   1
                                                                     EXHIBIT 4.6

                           TASER INTERNATIONAL, INC.

                                PURCHASE WARRANT

                                   Issued to:

                        PAULSON INVESTMENT COMPANY, INC.

                            Exercisable to Purchase

                                _________ UNITS

                      THIS WARRANT HAS NOT BEEN REGISTERED
                        UNDER THE SECURITIES ACT OF 1933
                            AND IS NOT TRANSFERABLE
                           EXCEPT AS PROVIDED HEREIN

                     Void after ____________________ , 2006
<PAGE>   2
                  This is to certify that, for value received and subject to the
terms and conditions set forth below, the Warrantholder (hereinafter defined) is
entitled to purchase, and the Company promises and agrees to sell and issue to
the Warrantholder, at any time on or after ____________ , 2002 and on or before
____________ , 2006, up to ______ Units (hereinafter defined) at the Exercise
Price (hereinafter defined).

                  This Warrant Certificate is issued subject to the following
terms and conditions:

         1.       Definitions of Certain Terms. Except as may be otherwise
clearly required by the context, the following terms have the following
meanings:

                  (a)      "Act" means the Securities Act of 1933, as amended.

                  (b)      "Closing Date" means the date on which the Offering
is closed.

                  (c)      "Commission" means the Securities and Exchange
Commission.

                  (d)      "Common Stock" means the common stock, $0.00001 par
value, of the Company.

                  (e)      "Company" means TASER International, Inc., a Delaware
corporation.

                  (f)      "Company's Expenses" means any and all expenses
payable by the Company or the Warrantholder in connection with an offering
described in Section 6 hereof, except Warrantholder's Expenses.

                  (g)      "Effective Date" means the date on which the
Registration Statement is declared effective by the Commission.

                  (h)      "Exercise Price" means the price at which the
Warrantholder may purchase one complete Unit (or Securities obtainable in lieu
of one complete Unit) upon exercise of Warrants as determined from time to time
pursuant to the provisions hereof. The initial Exercise Price is $ ___________
per Unit (120% of the initial public offering price of a Unit). If a Warrant is
exercised for a component of a Unit or Units, then the price payable in
connection with such exercise shall be determined by allocating $0.001 to the
Unit Warrant and the balance of the Exercise Price to the share of Common Stock,
or, in each case, to any securities obtainable in addition to or in lieu of such
Unit Warrant or share of Common Stock by virtue of the application of Section 3
of this Warrant.

                  (i)      "Offering" means the public offering of Units made
pursuant to the Registration Statement.

                  (j)      "Participating Underwriter" means any underwriter
participating in the sale of the Securities pursuant to a registration under
Section 6 of this Warrant Certificate.

                  (k)      "Registration Statement" means the Company's
registration statement (File No. 333-____________), as amended on the Closing
Date.

Page 1 - Purchase Warrant
<PAGE>   3
                  (l)      "Rules and Regulations" means the rules and
regulations of the Commission adopted under the Act.

                  (m)      "Securities" means the securities obtained or
obtainable upon exercise of the Warrant or securities obtained or obtainable
upon exercise, exchange or conversion of such securities.

                  (n)      "Unit" means, as the case may require, either one of
the Units offered to the public pursuant to the Registration Statement or one of
the Units obtainable on exercise of a Warrant, each Unit consisting of one share
of Common Stock and one Unit Warrant to purchase one share of Common Stock on
the terms and conditions described in the Registration Statement.

                  (o)      "Unit Warrant" means a Common Stock purchase warrant
included as a component of a Unit.

                  (p)      "Warrant Certificate" means a certificate evidencing
the Warrant.

                  (q)      "Warrantholder" means a record holder of the Warrant
or Securities. The initial Warrantholder is Paulson Investment Company, Inc.

                  (r)      "Warrantholder's Expenses" means the sum of (i) the
aggregate amount of cash payments made to an underwriter, underwriting
syndicate, or agent in connection with an offering described in Section 6 hereof
multiplied by a fraction, the numerator of which is the aggregate sales price of
the Securities sold by such underwriter, underwriting syndicate, or agent in
such offering on behalf of the Warrantholder and the denominator of which is the
aggregate sales price of all of the securities sold by such underwriter,
underwriting syndicate, or agent in such offering and (ii) all out-of-pocket
expenses of the Warrantholder, except for the fees and disbursements of one firm
retained as legal counsel for the Warrantholder on behalf of all of the
Warrantholders that will be paid by the Company.

                  (s)      "Warrant" means the warrant evidenced by this
certificate, any similar certificate issued in connection with the Offering, or
any certificate obtained upon transfer or partial exercise of the Warrant
evidenced by any such certificate.

         2.       Exercise of Warrants. All or any part of the Warrant may be
exercised commencing on the first anniversary of the Effective Date and ending
at 5:00 p.m. (Pacific Time) on the fifth anniversary of the Effective Date by
surrendering this Warrant Certificate, together with appropriate instructions,
duly executed by the Warrantholder or by its duly authorized attorney, at the
office of the Company, 7860 East McClain Drive, Suite 2, Scottsdale, Arizona
85260, or at such other office or agency as the Company may designate. Upon
receipt of notice of exercise, the Company shall immediately instruct its
transfer agent to prepare certificates for the Securities to be received by the
Warrantholder upon completion of the Warrant exercise. When such certificates
are prepared, the Company shall notify the Warrantholder and deliver such
certificates to the Warrantholder or as per the Warrantholder's instructions
immediately upon payment in full by the Warrantholder, in lawful money of the
United States, of the Exercise Price payable with respect to the Securities
being purchased. If the Warrantholder shall represent and warrant that all
applicable registration and prospectus delivery requirements for their sale have
been complied with upon sale

Page 2 - Purchase Warrant
<PAGE>   4
of the securities received upon exercise of the Warrant, such certificates shall
not bear a legend with respect to the Act.

         If fewer than all the Securities purchasable under the Warrant are
purchased, the Company will, upon such partial exercise, execute and deliver to
the Warrantholder a new Warrant Certificate (dated the date hereof), in form and
tenor similar to this Warrant Certificate, evidencing that portion of the
Warrant not exercised. The Securities to be obtained on exercise of the Warrant
will be deemed to have been issued, and any person exercising the Warrants will
be deemed to have become a holder of record of those Securities, as of the date
of the payment of the Exercise Price.

         3.       Adjustments in Certain Events. The number, class, and price of
Securities for which this Warrant Certificate may be exercised are subject to
adjustment from time to time upon the happening of certain events as follows:

                  (a)      If the outstanding shares of the Company's Common
Stock are divided into a greater number of shares or a dividend in stock is paid
on the Common Stock, the number of shares of Common Stock for which the Warrant
is then exercisable will be proportionately increased and the Exercise Price
will be proportionately reduced; and, conversely, if the outstanding shares of
Common Stock are combined into a smaller number of shares of Common Stock, the
number of shares of Common Stock for which the Warrant is then exercisable will
be proportionately reduced and the Exercise Price will be proportionately
increased. The increases and reductions provided for in this subsection 3(a)
will be made with the intent and, as nearly as practicable, the effect that
neither the percentage of the total equity of the Company obtainable on exercise
of the Warrants nor the price payable for such percentage upon such exercise
will be affected by any event described in this subsection 3(a).

                  (b)      In case of any change in the Common Stock through
merger, consolidation, reclassification, reorganization, partial or complete
liquidation, purchase of substantially all the assets of the Company, or other
change in the capital structure of the Company, then, as a condition of such
change, lawful and adequate provision will be made so that the holder of this
Warrant Certificate will have the right thereafter to receive upon the exercise
of the Warrant the kind and amount of shares of stock or other securities or
property to which he would have been entitled if, immediately prior to such
event, he had held the number of shares of Common Stock obtainable upon the
exercise of the Warrant. In any such case, appropriate adjustment will be made
in the application of the provisions set forth herein with respect to the rights
and interest thereafter of the Warrantholder, to the end that the provisions set
forth herein will thereafter be applicable, as nearly as reasonably may be, in
relation to any shares of stock or other property thereafter deliverable upon
the exercise of the Warrant. The Company will not permit any change in its
capital structure to occur unless the issuer of the shares of stock or other
securities to be received by the holder of this Warrant Certificate, if not the
Company, agrees to be bound by and comply with the provisions of this Warrant
Certificate.

                  (c)      When any adjustment is required to be made in the
number of shares of Common Stock, other securities, or the property purchasable
upon exercise of the Warrant, the Company will promptly determine the new number
of such shares or other securities or property

Page 3 - Purchase Warrant
<PAGE>   5
purchasable upon exercise of the Warrant and (i) prepare and retain on file a
statement describing in reasonable detail the method used in arriving at the new
number of such shares or other securities or property purchasable upon exercise
of the Warrant and (ii) cause a copy of such statement to be mailed to the
Warrantholder within thirty (30) days after the date of the event giving rise to
the adjustment.

                  (d)      No fractional shares of Common Stock or other
securities will be issued in connection with the exercise of the Warrant, but
the Company will pay, in lieu of fractional shares, a cash payment therefor on
the basis of the mean between the bid and asked prices of the Common Stock in
the over-the-counter market or the last sale price of the Common Stock on the
Nasdaq SmallCap Market or a national securities exchange on the day immediately
prior to exercise.

                  (e)      If securities of the Company or securities of any
subsidiary of the Company are distributed pro rata to holders of Common Stock,
such number of securities will be distributed to the Warrantholder or his
assignee upon exercise of his rights hereunder as such Warrantholder or assignee
would have been entitled to if this Warrant Certificate had been exercised prior
to the record date for such distribution. The provisions with respect to
adjustment of the Common Stock provided in this Section 3 will also apply to the
securities to which the Warrantholder or his assignee is entitled under this
subsection 3(e).

                  (f)      Notwithstanding anything herein to the contrary,
there will be no adjustment made hereunder on account of the sale by the Company
of the Common Stock or other Securities purchasable upon exercise of the
Warrant.

         4.       Reservation of Securities. The Company agrees that the number
of shares of Common Stock, Unit Warrants or other Securities sufficient to
provide for the exercise of the Warrant upon the basis set forth above will at
all times during the term of the Warrant be reserved for issuance upon exercise
of the Warrant.

         5.       Validity of Securities. All Securities delivered upon the
exercise of the Warrant will be duly and validly issued in accordance with their
terms, and the Company will pay all documentary and transfer taxes, if any, in
respect of the original issuance thereof upon exercise of the Warrant.

         6.       Registration of Securities Issuable on Exercise of Warrant
Certificate.

                  (a)      The Company will register the Securities with the
Commission pursuant to the Act so as to allow the unrestricted sale of the
Securities to the public from time to time commencing on the first anniversary
of the Effective Date and ending at 5:00 p.m. (Pacific Time) on the fifth
anniversary of the Effective Date (the "Registration Period"). The Company will
also file such applications and other documents necessary to permit the sale of
the Securities to the public during the Registration Period in those states
designated by the Warrantholders among those in which the Units were qualified
for sale in the Offering or in such other states as the Company and the
Warrantholder agree to. In order to comply with the provisions of this Section
6(a), the Company is not required to file more than one registration statement
in addition to the Registration Statement.

Page 4 - Purchase Warrant
<PAGE>   6
                  (b)      The Company will pay all of the Company's Expenses
and each Warrantholder will pay its pro rata share of the Warrantholder's
Expenses relating to the registration, offer and sale of the Securities.

                  (c)      Except as specifically provided herein, the manner
and conduct of the registration, including the contents of the registration
statement, will be entirely in the control and at the discretion of the Company.
The Company will file such post-effective amendments and supplements as may be
necessary to maintain the currency of the registration statement during the
Registration Period. In addition, if the Warrantholder participating in the
registration is advised by counsel that the registration statement, in their
opinion, is deficient in any material respect, the Company will use its best
efforts to cause the registration statement to be amended to eliminate the
concerns raised.

                  (d)      The Company will furnish to the Warrantholder the
number of copies of a prospectus, including a preliminary prospectus, in
conformity with the requirements of the Act, and such other documents as it may
reasonably request in order to facilitate the disposition of Securities owned by
it.

                  (e)      The Company will, at the request of Warrantholders
holding at least 50 percent of the then outstanding Warrants, (i) furnish an
opinion of the counsel representing the Company for the purposes of the
registration pursuant to this Section 6, addressed to the Warrantholders and any
Participating Underwriter, (ii) in the event of an underwritten offering,
furnish an appropriate letter from the independent public accountants of the
Company, addressed to the Warrantholders and any Participating Underwriter, and
(iii) make such representations and warranties to the Warrantholders and any
Participating Underwriter as are customarily given to underwriters of public
offerings of equity securities in connection with such offerings. A request
pursuant to this subsection (e) may be made on three occasions. The documents
required to be delivered pursuant to this subsection (e) will be dated within
ten days of the request and will be, in form and substance, equivalent to
similar documents furnished to the underwriters in connection with the Offering,
with such changes as may be appropriate in light of changed circumstances.

         7.       Indemnification in Connection with Registration.

                  (a)      If any of the Securities are registered, the Company
will indemnify and hold harmless each selling Warrantholder, any person who
controls any selling Warrantholder within the meaning of the Act, and any
Participating Underwriter against any losses, claims, damages, or liabilities,
joint or several, to which any Warrantholder, controlling person, or
Participating Underwriter may be subject under the Act or otherwise; and it will
reimburse each Warrantholder, each controlling person, and each Participating
Underwriter for any legal or other expenses reasonably incurred by the
Warrantholder, controlling person, or Participating Underwriter in connection
with investigating or defending any such loss, claim, damage, liability or
action, insofar as such losses, claims, damages, or liabilities, joint or
several (or actions in respect thereof), arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained, on
the effective date thereof, in any such registration statement or any
preliminary prospectus or final prospectus, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated

Page 5 - Purchase Warrant
<PAGE>   7
therein or necessary to make the statements therein not misleading; provided,
however, that the Company will not be liable in any case to the extent that any
loss, claim, damage, or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
any registration statement, preliminary prospectus, final prospectus, or any
amendment or supplement thereto, in reliance upon and in conformity with written
information furnished by a Warrantholder for use in the preparation thereof. The
indemnity agreement contained in this subsection (a) will not apply to amounts
paid to any claimant in settlement of any suit or claim unless such payment is
first approved by the Company, such approval not to be unreasonably withheld.

                  (b)      Each selling Warrantholder, as a condition of the
Company's registration obligation, will indemnify and hold harmless the Company,
each of its directors, each of its officers who have signed any registration
statement or other filing, or any amendment or supplement thereto, and any
person who controls the Company within the meaning of the Act, against any
losses, claims, damages, or liabilities to which the Company or any such
director, officer, or controlling person may become subject under the Act or
otherwise, and will reimburse any legal or other expenses reasonably incurred by
the Company or any such director, officer, or controlling person in connection
with investigating or defending any such loss, claim, damage, liability, or
action, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue or alleged untrue
statement of any material fact contained in said registration statement, any
preliminary or final prospectus, or other filing or any amendment or supplement
thereto, or arise out of or are based upon the omission or the alleged omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, but only to the extent that such
untrue statement or alleged untrue statement or omission or alleged omission was
made in said registration statement, preliminary or final prospectus, or other
filing, or amendment or supplement, in reliance upon and in conformity with
written information furnished by such Warrantholder for use in the preparation
thereof; provided, however, that the indemnity agreement contained in this
subsection (b) will not apply to amounts paid to any claimant in settlement of
any suit or claim unless such payment is first approved by the Warrantholder,
such approval not to be unreasonably withheld.

                  (c)      Promptly after receipt by an indemnified party under
subsection (a) or (b) above of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party, notify the indemnifying party of the commencement thereof;
but the omission to notify the indemnifying party will not relieve it from any
liability that it may have to any indemnified party otherwise than under
subsections (a) and (b).

                  (d)      If any such action is brought against any indemnified
party and it notifies an indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate in, and, to the extent that
it may wish, jointly with any other indemnifying party similarly notified, to
assume the defense thereof, with counsel satisfactory to such indemnified party;
and after notice from the indemnifying party to such indemnified party of its
election to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense thereof other
than reasonable costs of investigation.

Page 6 - Purchase Warrant
<PAGE>   8
         8.       Restrictions on Transfer. This Warrant Certificate and the
Warrant may not be sold, transferred, assigned, pledged or hypothecated for a
period of one year following the Effective Date of the Offering, except
transfers to officers or partners (not directors) of the underwriters and
members of the selling group and/or their officers or partners or by will or
operation of law. The Warrant may be divided or combined, upon request to the
Company by the Warrantholder, into a certificate or certificates evidencing the
same aggregate number of Warrants.

         9.       No Rights as a Shareholder. Except as otherwise provided
herein, the Warrantholder will not, by virtue of ownership of the Warrant, be
entitled to any rights of a shareholder of the Company but will, upon written
request to the Company, be entitled to receive such quarterly or annual reports
as the Company distributes to its shareholders.

         10.      Optional Conversion.

                  (a)      In addition to and without limiting the right of any
Warrantholder under the terms of this Warrant, the Warrantholder shall have the
right (the "Conversion Right") to convert this Warrant or any portion thereof
into Securities as provided in this Section 10 at any time or from time-to-time
after the first anniversary of the date hereof and prior to its expiration. Upon
exercise of the Conversion Right with respect to a particular number of Units
subject to this Warrant (the "Converted Securities"), the Company shall deliver
to the holder of this Warrant, without payment by the holder of any exercise
price or any cash or other consideration, that number of Units equal to the
quotient obtained by dividing the Net Value (as hereinafter defined) of the
Converted Securities by the sum of the fair market value (as defined in
paragraph (c) below) of a single share of Common Stock plus a single Unit
Warrant, determined in each case as of the close of business on the Conversion
Date (as hereinafter defined). The "Net Value" of the Converted Securities shall
be determined by subtracting the aggregate Exercise Price of the Converted
Securities from the aggregate fair market value of the Converted Securities.
Notwithstanding anything in this Section 10 to the contrary, the Conversion
Right cannot be exercised with respect to a number of Converted Securities
having a Net Value below $100. No fractional shares shall be issuable upon
exercise of the Conversion Right, and if the number of shares to be issued in
accordance with the foregoing formula is other than a whole number, the Company
shall pay to the holder of this Warrant an amount in cash equal to the fair
market value of the resulting fractional share.

                  (b)      The Conversion Right may be exercised by the holder
of this Warrant by the surrender of this Warrant at the principal office of the
Company together with a written statement specifying that the holder thereby
intends to exercise the Conversion Right and indicating the number of Securities
subject to this Warrant which are being surrendered (referred to in paragraph
(a) above as the Converted Securities) in exercise of the Conversion Right. Such
conversion shall be effective upon receipt by the Company of this Warrant
together with the aforesaid written statement, or on such later date as is
specified therein (the "Conversion Date"), but not later than the expiration
date of this Warrant. Certificates for the shares of Common Stock and Unit
Warrants issuable upon exercise of the Conversion Right, together with a check
in payment of any fractional share and, in the case of a partial exercise, a new
Warrant evidencing the Securities remaining subject to this Warrant, shall be
issued as of the Conversion Date, and shall be delivered to the holder of this
Warrant within seven days following the Conversion Date.

Page 7 - Purchase Warrant
<PAGE>   9
                  (c)      For purposes of this Section 10, the "fair market
value" of a share of Common Stock or Unit Warrant as of a particular date shall
be the mean between the bid and asked price of the Common Stock or Unit Warrant,
as the case may be, as quoted in the over the counter market, or, if applicable,
the closing sale price of the Common Stock or Unit Warrant, as the case may be,
on the Nasdaq Stock Market or a national exchange.

         11.      Notice. Any notices required or permitted to be given
hereunder will be in writing and may be served personally or by mail addressed
as follows:

                  If to the Company:

                           7860 East McClain Drive, Suite 2
                           Scottsdale, Arizona 85260
                           Attn: Chief Executive Officer

                  If to the Warrantholder:

                           at the address furnished
                           by the Warrantholder to the
                           Company for the purpose of
                           notice.

         Any notice so given by mail will be deemed effectively given 48 hours
after mailing when deposited in the United States mail, registered or certified
mail, return receipt requested, postage prepaid and addressed as specified
above. Any party may by written notice to the other specify a different address
for notice purposes.

                     [Remainder of Page Intentionally Blank]

Page 8 - Purchase Warrant
<PAGE>   10
         12.      Applicable Law. This Warrant Certificate will be governed by
and construed in accordance with the laws of the State of Oregon, without
reference to conflict of laws principles thereunder. All disputes relating to
this Warrant Certificate shall be tried before the courts of Oregon located in
Multnomah County, Oregon, to the exclusion of all other courts that might have
jurisdiction.

Dated as of ______________ , 2001.

TASER INTERNATIONAL, INC.

By:________________________________
   Patrick W. Smith,
   Chief Executive Officer

Agreed and Accepted as of ______________ , 2001
PAULSON INVESTMENT COMPANY, INC.

By:_______________________________

   Authorized Officer

Purchase 9 - Purchase Warrant

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