Document:

GUARANTEE AGREEMENT

4:

  

  

                                                                                         
  Exhibit 10.14

  GUARANTEE AGREEMENT

  PFF Bancorp, Inc.

  Dated as of September
  30, 2004

 

  TABLE OF CONTENTS

  Page

  ARTICLE I

  

  DEFINITIONS AND INTERPRETATION

  SECTION
  1.1      Definitions and
  Interpretation.................................................................................
  1

  ARTICLE II

  

  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

  SECTION
  2.1      Powers and Duties of the Guarantee
  Trustee.......................................................... 4

  SECTION
  2.2      Certain Rights of the Guarantee
  Trustee.................................................................
  5

  SECTION
  2.3      Not Responsible for Recitals or Issuance of
  Guarantee........................................... 7

  SECTION
  2.4      Events of Default;
  Waiver......................................................................................
  7

  SECTION
  2.5      Events of Default;
  Notice.......................................................................................
  8

  ARTICLE III

  

  THE GUARANTEE TRUSTEE

  SECTION
  3.1      The Guarantee Trustee;
  Eligibility...........................................................................
  8

  SECTION
  3.2      Appointment, Removal and Resignation of the
  Guarantee Trustee........................... 9

  ARTICLE IV

  

  GUARANTEE

  SECTION
  4.1     
  Guarantee.............................................................................................................
  9

  SECTION
  4.2      Waiver of Notice and
  Demand............................................................................
  10

  SECTION
  4.3      Obligations Not
  Affected.....................................................................................
  10

  SECTION
  4.4      Rights of
  Holders................................................................................................
  11

  SECTION
  4.5      Guarantee of
  Payment.........................................................................................
  11

  SECTION
  4.6     
  Subrogation........................................................................................................
  11

  SECTION
  4.7      Independent
  Obligations......................................................................................
  12

  SECTION
  4.8     
  Enforcement........................................................................................................
  12

  ARTICLE V

  

  LIMITATION OF TRANSACTIONS; SUBORDINATION

  SECTION
  5.1      Limitation of
  Transactions....................................................................................
  12

  SECTION
  5.2     
  Ranking..............................................................................................................
  13

  i

  

  ARTICLE VI

  

  TERMINATION

  SECTION
  6.1     
  Termination.........................................................................................................
  13

  ARTICLE VII

  

  INDEMNIFICATION

  SECTION
  7.1     
  Exculpation.........................................................................................................
  13

  SECTION
  7.2     
  Indemnification....................................................................................................
  14

  SECTION
  7.3      Compensation; Reimbursement of
  Expenses........................................................ 15

  ARTICLE VIII

  

  MISCELLANEOUS

  SECTION
  8.1      Successors and
  Assigns.......................................................................................
  15

  SECTION
  8.2     
  Amendments.......................................................................................................
  16

  SECTION
  8.3     
  Notices...............................................................................................................
  16

  SECTION
  8.4     
  Benefit................................................................................................................
  16

  SECTION
  8.5      Governing
  Law...................................................................................................
  16

  SECTION
  8.6     
  Counterparts.......................................................................................................
  17

  ii

  

  GUARANTEE AGREEMENT

                 
  This GUARANTEE AGREEMENT (the "Guarantee"), dated as of September
  30, 2004, is executed and delivered by PFF Bancorp, Inc., a savings and loan
  holding company incorporated in the State of Delaware (the
  "Guarantor"), and Wilmington Trust Company, a Delaware banking
  corporation, as trustee (the "Guarantee Trustee"), for the benefit
  of the Holders (as defined herein) from time to time of the Capital Securities
  (as defined herein) of PFF Bancorp Capital Trust I, a Delaware statutory trust
  (the "Issuer"). 

                 
  WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
  "Declaration"), dated as of September 30, 2004, among the trustees
  named therein of the Issuer, PFF Bancorp, Inc., as sponsor, and the Holders
  from time to time of undivided beneficial interests in the assets of the
  Issuer, the Issuer is issuing on the date hereof securities, having an
  aggregate liquidation amount of $30,000,000, designated in the Declaration as
  MMCapSSM (the "Capital Securities"); and

                 
  WHEREAS, as incentive for the Holders to purchase the Capital Securities, the
  Guarantor desires irrevocably and unconditionally to agree, to the extent set
  forth in this Guarantee, to pay to the Holders of Capital Securities the
  Guarantee Payments (as defined herein) and to make certain other payments on
  the terms and conditions set forth herein.

                 
  NOW, THEREFORE, in consideration of the purchase by each Holder of the Capital
  Securities, which purchase the Guarantor hereby agrees shall benefit the
  Guarantor, the Guarantor executes and delivers this Guarantee for the benefit
  of the Holders.

  ARTICLE I

  DEFINITIONS AND INTERPRETATION

                     
  SECTION 1.1 Definitions and Interpretation.

                      
  In this Guarantee, unless the context otherwise requires:

                     
  (a) capitalized terms used in this Guarantee but not defined in the preamble
  above have the respective meanings assigned to them in this Section 1.1;

                     
  (b) a term defined anywhere in this Guarantee has the same meaning throughout;

                     
  (c) all references to "the Guarantee" or "this Guarantee"
  are to this Guarantee as modified, supplemented or amended from time to time;

                     
  (d) all references in this Guarantee to Articles and Sections are to Articles
  and Sections of this Guarantee, unless otherwise specified;

                      
  (e) terms defined in the Declaration as of the date of execution of this
  Guarantee have the same meanings when used in this Guarantee, unless otherwise
  defined in this Guarantee or unless the context otherwise requires; and

  1                    
  

  

   

   

                     
  (f) a reference to the singular includes the plural and vice versa.

                     
  "Beneficiaries" means any Person to whom the Issuer is or hereafter
  becomes indebted or liable.

                      
  "Common Securities" has the meaning specified in the Declaration.

                      
  "Corporate Trust Office"  means the office of the Guarantee
  Trustee at which at any particular time its corporate trust business shall be
  principally administered, which at all times shall be located within the
  United States and at the time of the execution of this Guarantee shall be
  Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-0001.

                       
  "Covered Person" means any Holder of Capital Securities.

                       
  "Debenture Issuer" means PFF Bancorp, Inc. or any successor entity
  resulting from any consolidation, amalgamation, merger or other business
  combination, in its capacity as issuer of the Debentures.

                        
  "Debentures" means the junior subordinated debentures of the
  Debenture Issuer that are designated in the Indenture as the "Floating
  Rate Junior Subordinated Debt Securities due 2034" and held by the
  Institutional Trustee (as defined in the Declaration) of the Issuer.

                         
  "Event of Default" has the meaning set forth in Section 2.4.

                         
  "Guarantee Payments" means the following payments or distributions,
  without duplication, with respect to the Capital Securities, to the extent not
  paid or made by the Issuer: (i) any accrued and unpaid Distributions (as
  defined in the Declaration) which are required to be paid on such Capital
  Securities to the extent the Issuer has funds available in the Property
  Account (as defined in the Declaration) therefor at such time, (ii) the price
  payable upon the redemption of any Capital Securities to the extent the Issuer
  has funds available in the Property Account therefor at such time, with
  respect to any Capital Securities that are (1) called for redemption by the
  Issuer or (2) mandatorily redeemed by the Issuer, in each case, in accordance
  with the terms of such Capital Securities, and (iii) upon a voluntary or
  involuntary liquidation, dissolution, winding-up or termination of the Issuer
  (other than in connection with the distribution of Debentures to the Holders
  of the Capital Securities in exchange therefor as provided in the
  Declaration), the lesser of (a) the aggregate of the liquidation amount of the
  Capital Securities and all accrued and unpaid Distributions on the Capital
  Securities to the date of payment, to the extent the Issuer has funds
  available in the Property Account therefor at such time, and (b) the amount of
  assets of the Issuer remaining available for distribution to Holders in
  liquidation of the Issuer after satisfaction of liabilities to creditors of
  the Issuer as required by applicable law (in either case, the
  "Liquidation Distribution").

                         
  "Guarantee Trustee" means Wilmington Trust Company, until a
  Successor Guarantee Trustee has been appointed and has accepted such
  appointment pursuant to the terms of this Guarantee and thereafter means each
  such Successor Guarantee Trustee.

                         
  "Holder" means any Person in whose name any Capital Securities are
  registered on the books and records of the Issuer; provided, however,
  that, in determining whether the

  

                                                                              
  2

  

   holders of the requisite
  percentage of Capital Securities have given any request, notice, consent or
  waiver hereunder, "Holder" shall not include the Guarantor or any
  Affiliate of the Guarantor.

                     
  "Indemnified Person" means the Guarantee Trustee (including in its
  individual capacity), any Affiliate of the Guarantee Trustee, or any officers,
  directors, shareholders, members, partners, employees, representatives,
  nominees, custodians or agents of the Guarantee Trustee.

                     
  "Indenture" means the Indenture, dated as of September 30, 2004,
  between the Debenture Issuer and Wilmington Trust Company, not in its
  individual capacity but solely as trustee, and any indenture supplemental
  thereto pursuant to which the Debentures are to be issued to the Institutional
  Trustee of the Issuer.

                     
  "Liquidation Distribution" has the meaning set forth in the
  definition of "Guarantee Payments" herein.

                     
  "Majority in liquidation amount of the Capital Securities" means
  Holder(s) of outstanding Capital Securities, voting together as a class, but
  separately from the holders of Common Securities, of more than 50% of the
  aggregate liquidation amount (including the amount that would be paid upon the
  redemption, liquidation or otherwise on the date upon which the voting
  percentages are determined, plus unpaid Distributions accrued thereon to such
  date) of all Capital Securities then outstanding.

                     
  "Obligations" means any costs, expenses or liabilities (but not
  including liabilities related to taxes) of the Issuer, other than obligations
  of the Issuer to pay to holders of any Trust Securities the amounts due such
  holders pursuant to the terms of the Trust Securities.

                     
  "Officer's Certificate" means, with respect to any Person, a
  certificate signed by one Authorized Officer of such Person.  Any Officer's
  Certificate delivered with respect to compliance with a condition or covenant
  provided for in this Guarantee shall include:

                     
  (a)        a statement that such officer
  signing the Officer's Certificate has read the covenant or condition and the
  definitions relating thereto;

                     
  (b)        a brief statement of the nature
  and scope of the examination or investigation undertaken by such officer in
  rendering the Officer's Certificate;

                     
  (c)        a statement that such officer
  has made such examination or investigation as, in such officer's opinion, is
  necessary to enable such officer to express an informed opinion as to whether
  or not such covenant or condition has been complied with; and

                     
  (d)        a statement as to whether, in
  the opinion of such officer, such condition or covenant has been complied
  with.

                     
  "Person" means a legal person, including any individual,
  corporation, estate, partnership, joint venture, association, joint stock
  company, limited liability company, trust, 

  

                                                                          
  3

  

  unincorporated association, or
  government or any agency or political subdivision thereof, or any other entity
  of whatever nature.

                     
  "Responsible Officer" means, with respect to the Guarantee Trustee,
  any officer within the Corporate Trust Office of the Guarantee Trustee with
  direct responsibility for the administration of any matters relating to this
  Guarantee, including any vice president, any assistant vice president, any
  secretary, any assistant secretary, the treasurer, any assistant treasurer,
  any trust officer or other officer of the Corporate Trust Office of the
  Guarantee Trustee customarily performing functions similar to those performed
  by any of the above designated officers and also means, with respect to a
  particular corporate trust matter, any other officer to whom such matter is
  referred because of that officer's knowledge of and familiarity with the
  particular subject.

                     
  "Successor Guarantee Trustee" means a successor Guarantee Trustee
  possessing the qualifications to act as Guarantee Trustee under Section 3.1.

                       
  "Trust Securities" means the Common Securities and the Capital
  Securities.

  ARTICLE II

  

  POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

                            
  SECTION 2.1 Powers and Duties of the Guarantee Trustee.

                             
  (a)  This Guarantee shall be held by the Guarantee Trustee for the
  benefit of the Holders of the Capital Securities, and the Guarantee Trustee
  shall not transfer this Guarantee to any Person except a Holder of Capital
  Securities exercising his or her rights pursuant to Section 4.4 (b) or to a
  Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee
  of its appointment to act as Successor Guarantee Trustee.  The right,
  title and interest of the Guarantee Trustee shall automatically vest in any
  Successor Guarantee Trustee, and such vesting and cessation of title shall be
  effective whether or not conveyancing documents have been executed and
  delivered pursuant to the appointment of such Successor Guarantee Trustee.

                         
  (b) If an Event of Default actually known to a Responsible Officer of the
  Guarantee Trustee has occurred and is continuing, the Guarantee Trustee shall
  enforce this Guarantee for the benefit of the Holders of the Capital
  Securities.

                         
  (c) The Guarantee Trustee, before the occurrence of any Event of Default and
  after the curing or waiving of all Events of Default that may have occurred,
  shall undertake to perform only such duties as are specifically set forth in
  this Guarantee, and no implied covenants shall be read into this Guarantee
  against the Guarantee Trustee.  In case an Event of Default has occurred
  (that has not been cured or waived pursuant to Section 2.4(b)) and is actually
  known to a Responsible Officer of the Guarantee Trustee, the Guarantee Trustee
  shall exercise such of the rights and powers vested in it by this Guarantee,
  and use the same degree of care and skill in its exercise thereof, as a
  prudent person would exercise or use under the circumstances in the conduct of
  his or her own affairs.

  

                                                                         
  4

  

   

                 
  (d) No provision of this Guarantee shall be construed to relieve the Guarantee
  Trustee from liability for its own negligent action, its own negligent failure
  to act, or its own willful misconduct or bad faith, except that:

                         
  (i)  prior to the occurrence of any Event of Default and after the curing
  or waiving of all Events of Default that may have occurred:

                                 
  (A)  the duties and obligations of the Guarantee Trustee shall be
  determined solely by the express provisions of this Guarantee, and the
  Guarantee Trustee shall not be liable except for the performance of such
  duties and obligations as are specifically set forth in this Guarantee, and no
  implied covenants or obligations shall be read into this Guarantee against the
  Guarantee Trustee; and

                                 
  (B)  in the absence of bad faith on the part of the Guarantee Trustee,
  the Guarantee Trustee may conclusively rely, as to the truth of the statements
  and the correctness of the opinions expressed therein, upon any certificates
  or opinions furnished to the Guarantee Trustee and conforming to the
  requirements of this Guarantee; but in the case of any such certificates or
  opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be
  under a duty to examine the same to determine whether or not on their face
  they conform to the requirements of this Guarantee;

                 
  (ii) the Guarantee Trustee shall not be liable for any error of judgment made
  in good faith by a Responsible Officer of the Guarantee Trustee, unless it
  shall be proved that such Responsible Officer of the Guarantee Trustee or the
  Guarantee Trustee was negligent in ascertaining the pertinent facts upon which
  such judgment was made;

                 
  (iii) the Guarantee Trustee shall not be liable with respect to any action
  taken or omitted to be taken by it in good faith in accordance with the
  written direction of the Holders of a Majority in liquidation amount of the
  Capital Securities relating to the time, method and place of conducting any
  proceeding for any remedy available to the Guarantee Trustee, or exercising
  any trust or power conferred upon the Guarantee Trustee under this Guarantee;
  and

                 
  (iv) no provision of this Guarantee shall require the Guarantee Trustee to
  expend or risk its own funds or otherwise incur personal financial liability
  in the performance of any of its duties or in the exercise of any of its
  rights or powers, if the Guarantee Trustee shall have reasonable grounds for
  believing that the repayment of such funds is not reasonably assured to it
  under the terms of this Guarantee, or security and indemnity, reasonably
  satisfactory to the Guarantee Trustee, against such risk or liability is not
  reasonably assured to it.

  

          SECTION 2.2 Certain
  Rights of the Guarantee Trustee.

          (a) Subject to the
  provisions of Section 2.1:

  

  

                                                                          
  5

  

                 
  (i)  The Guarantee Trustee may conclusively rely, and shall be fully protected
  in acting or refraining from acting upon, any resolution, certificate,
  statement, instrument, opinion, report, notice, request, direction, consent,
  order, bond, debenture, note, other evidence of indebtedness or other paper or
  document believed by it to be genuine and to have been signed, sent or
  presented by the proper party or parties.

                 
  (ii) Any direction or act of the Guarantor contemplated by this Guarantee
  shall be sufficiently evidenced by an Officer's Certificate.

                 
  (iii) Whenever, in the administration of this Guarantee, the Guarantee Trustee
  shall deem it desirable that a matter be proved or established before taking,
  suffering or omitting any action hereunder, the Guarantee Trustee (unless
  other evidence is herein specifically prescribed) may, in the absence of bad
  faith on its part, request and conclusively rely upon an Officer's
  Certificate of the Guarantor which, upon receipt of such request, shall be
  promptly delivered by the Guarantor.

                 
  (iv) The Guarantee Trustee shall have no duty to see to any recording, filing
  or registration of any instrument or other writing (or any rerecording,
  refiling or reregistration thereof).

                 
  (v) The Guarantee Trustee may consult with counsel of its selection, and the
  advice or opinion of such counsel with respect to legal matters shall be full
  and complete authorization and protection in respect of any action taken,
  suffered or omitted by it hereunder in good faith and in accordance with such
  advice or opinion.  Such counsel may be counsel to the Guarantor or any
  of its Affiliates and may include any of its employees.  The Guarantee
  Trustee shall have the right at any time to seek instructions concerning the
  administration of this Guarantee from any court of competent jurisdiction.

                 
  (vi) The Guarantee Trustee shall be under no obligation to exercise any of the
  rights or powers vested in it by this Guarantee at the request or direction of
  any Holder, unless such Holder shall have provided to the Guarantee Trustee
  such security and indemnity, reasonably satisfactory to the Guarantee Trustee,
  against the costs, expenses (including attorneys' fees and expenses and the
  expenses of the Guarantee Trustee's agents, nominees or custodians) and
  liabilities that might be incurred by it in complying with such request or
  direction, including such reasonable advances as may be requested by the
  Guarantee Trustee; provided, however, that nothing contained in this Section
  2.2(a)(vi) shall be taken to relieve the Guarantee Trustee, upon the
  occurrence of an Event of Default, of its obligation to exercise the rights
  and powers vested in it by this Guarantee.

                 
  (vii)  The Guarantee Trustee shall not be bound to make any
  investigation into the facts or matters stated in any resolution, certificate,
  statement, instrument, opinion, report, notice, request, direction, consent,
  order, bond, debenture, note, other evidence of indebtedness or other paper or
  document, but the Guarantee Trustee, in its discretion, may make such further
  inquiry or investigation into such facts or matters as it may see fit.

  

                                                                          
  6

  

                 
  (viii) The Guarantee Trustee may execute any of the trusts or powers hereunder
  or perform any duties hereunder either directly or by or through agents,
  nominees, custodians or attorneys, and the Guarantee Trustee shall not be
  responsible for any misconduct or negligence on the part of any agent or
  attorney appointed with due care by it hereunder.

                 
  (ix) Any action taken by the Guarantee Trustee or its agents hereunder shall
  bind the Holders of the Capital Securities, and the signature of the Guarantee
  Trustee or its agents alone shall be sufficient and effective to perform any
  such action.  No third party shall be required to inquire as to the
  authority of the Guarantee Trustee to so act or as to its compliance with any
  of the terms and provisions of this Guarantee, both of which shall be
  conclusively evidenced by the Guarantee Trustee's or its agent's taking
  such action.

                 
  (x) Whenever in the administration of this Guarantee the Guarantee Trustee
  shall deem it desirable to receive instructions with respect to enforcing any
  remedy or right or taking any other action hereunder, the Guarantee Trustee
  (A) may request instructions from the Holders of a Majority in liquidation
  amount of the Capital Securities, (B) may refrain from enforcing such remedy
  or right or taking such other action until such instructions are received and
  (C) shall be protected in conclusively relying on or acting in accordance with
  such instructions.

                 
  (xi) The Guarantee Trustee shall not be liable for any action taken, suffered,
  or omitted to be taken by it in good faith and reasonably believed by it to be
  authorized or within the discretion or rights or powers conferred upon it by
  this Guarantee.

           (b) No provision of this
  Guarantee shall be deemed to impose any duty or obligation on the Guarantee
  Trustee to perform any act or acts or exercise any right, power, duty or
  obligation conferred or imposed on it, in any jurisdiction in which it shall
  be illegal or in which the Guarantee Trustee shall be unqualified or
  incompetent in accordance with applicable law to perform any such act or acts
  or to exercise any such right, power, duty or obligation.  No permissive
  power or authority available to the Guarantee Trustee shall be construed to be
  a duty.

              SECTION
  2.3 Not Responsible for Recitals or Issuance of
  Guarantee.

             
  The recitals contained in this Guarantee shall be taken as the statements of
  the Guarantor, and the Guarantee Trustee does not assume any responsibility
  for their correctness.  The Guarantee Trustee makes no representation as
  to the validity or sufficiency of this Guarantee.

                 
  SECTION 2.4 Events of Default; Waiver.

                     
  (a)   An "Event of Default" under this Guarantee will
  occur upon the failure of the Guarantor to perform any of its payment or other
  obligations hereunder.

                      
  (b) The Holders of a Majority in liquidation amount of the Capital Securities
  may, voting or consenting as a class, on behalf of the Holders of all of the
  Capital Securities, 

  

  

                                                                                  
  7

  

  

  waive any past Event of Default and its consequences.  Upon such waiver,
  any such Event of Default shall cease to exist, and shall be deemed to have
  been cured, for every purpose of this Guarantee, but no such waiver shall
  extend to any subsequent or other default or Event of Default or impair any
  right consequent thereon.

                     
  SECTION 2.5 Events of Default; Notice.

                     
  (a)  The Guarantee Trustee shall, within 90 days after the occurrence of
  an Event of Default, transmit by mail, first class postage prepaid, to the
  Holders of the Capital Securities, notices of all Events of Default actually
  known to a Responsible Officer of the Guarantee Trustee, unless such defaults
  have been cured before the giving of such notice, provided, however, that the
  Guarantee Trustee shall be protected in withholding such notice if and so long
  as a Responsible Officer of the Guarantee Trustee in good faith determines
  that the withholding of such notice is in the interests of the Holders of the
  Capital Securities.

                     
  (b) The Guarantee Trustee shall not be charged with knowledge of any Event of
  Default unless the Guarantee Trustee shall have received written notice
  thereof from the Guarantor or a Holder of the Capital Securities, or a
  Responsible Officer of the Guarantee Trustee charged with the administration
  of this Guarantee shall have actual knowledge thereof.

  ARTICLE III

  

  THE GUARANTEE TRUSTEE

                     
  SECTION 3.1 The Guarantee Trustee; Eligibility.

                     
  (a)           There shall at
  all times be a Guarantee Trustee which shall:

                                     
  (i)     not be an Affiliate of the Guarantor; and

                                     
  (ii) be a corporation or national association organized and doing business
  under the laws of the United States of America or any state thereof or of the
  District of Columbia, or Person authorized under such laws to exercise
  corporate trust powers, having a combined capital and surplus of at least 50
  million U.S. dollars ($50,000,000), and subject to supervision or examination
  by federal, state or District of Columbia authority.  If such corporation
  or national association publishes reports of condition at least annually,
  pursuant to law or to the requirements of the supervising or examining
  authority referred to above, then, for the purposes of this Section
  3.1(a)(ii), the combined capital and surplus of such corporation or national
  association shall be deemed to be its combined capital and surplus as set
  forth in its most recent report of condition so published.

                   
  (b) If at any time the Guarantee Trustee shall cease to be eligible to so act
  under Section 3.1(a), the Guarantee Trustee shall immediately resign in the
  manner and with the effect set forth in Section 3.2(c).

                   
  (c) If the Guarantee Trustee has or shall acquire any "conflicting
  interest" within the meaning of Section 310(b) of the Trust Indenture
  Act, the Guarantee Trustee shall

  

                                                                                    
  8 

  

  

  

  either eliminate such interest or resign to the extent and in the manner
  provided by, and subject to, this Guarantee.

                 
  SECTION 3.2 Appointment, Removal and Resignation of the
  Guarantee Trustee.

                 
  (a) Subject to Section 3.2(b), the Guarantee Trustee may be appointed or
  removed without cause at any time by the Guarantor except during an Event of
  Default.

                 
  (b) The Guarantee Trustee shall not be removed in accordance with Section
  3.2(a) until a Successor Guarantee Trustee has been appointed and has accepted
  such appointment by written instrument executed by such Successor Guarantee
  Trustee and delivered to the Guarantor.

                 
  (c) The Guarantee Trustee appointed to office shall hold office until a
  Successor Guarantee Trustee shall have been appointed or until its removal or
  resignation.  The Guarantee Trustee may resign from office (without need
  for prior or subsequent accounting) by an instrument in writing executed by
  the Guarantee Trustee and delivered to the Guarantor, which resignation shall
  not take effect until a Successor Guarantee Trustee has been appointed and has
  accepted such appointment by an instrument in writing executed by such
  Successor Guarantee Trustee and delivered to the Guarantor and the resigning
  Guarantee Trustee.

                 
  (d)  If no Successor Guarantee Trustee shall have been appointed and
  accepted appointment as provided in this Section 3.2 within 60 days after
  delivery of an instrument of removal or resignation, the Guarantee Trustee
  resigning or being removed may petition any court of competent jurisdiction
  for appointment of a Successor Guarantee Trustee.  Such court may
  thereupon, after prescribing such notice, if any, as it may deem proper,
  appoint a Successor Guarantee Trustee.

                 
  (e) No Guarantee Trustee shall be liable for the acts or omissions to act of
  any Successor Guarantee Trustee.

                 
  (f) Upon termination of this Guarantee or removal or resignation of the
  Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay to the
  Guarantee Trustee all amounts owing to the Guarantee Trustee under Sections
  7.2 and 7.3 accrued to the date of such termination, removal or resignation.

  

  ARTICLE IV

  GUARANTEE

                    SECTION 4.1 Guarantee.

                  
  (a) The Guarantor irrevocably and unconditionally agrees to pay in full to the
  Holders the Guarantee Payments (without duplication of amounts theretofore
  paid by the Issuer), as and when due, regardless of any defense (except
  defense of payment by the Issuer), right of set-off or counterclaim that the
  Issuer may have or assert.  The Guarantor's obligation to make a
  Guarantee Payment may be satisfied by direct payment of the required amounts
  by the Guarantor to the Holders or by causing the Issuer to pay such amounts
  to the Holders.

  

                                                                                
  9

  

                    
  (b) The Guarantor hereby also agrees to assume any and all Obligations of the
  Issuer and in the event any such Obligation is not so assumed, subject to the
  terms and conditions hereof, the Guarantor hereby irrevocably and
  unconditionally guarantees to each Beneficiary the full payment, when and as
  due, of any and all Obligations to such Beneficiaries.  This Guarantee is
  intended to be for the Beneficiaries who have received notice hereof.

                   SECTION 4.2 Waiver of Notice and Demand.

  The Guarantor hereby waives notice of
  acceptance of this Guarantee and of any liability to which it applies or may
  apply, presentment, demand for payment, any right to require a proceeding
  first against the Issuer or any other Person before proceeding against the
  Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
  redemption and all other notices and demands.

                   SECTION 4.3 Obligations Not Affected.

                  
  The obligations, covenants, agreements and duties of the Guarantor under this
  Guarantee shall in no way be affected or impaired by reason of the happening
  from time to time of any of the following:

                  
  (a) the release or waiver, by operation of law or otherwise, of the
  performance or observance by the Issuer of any express or implied agreement,
  covenant, term or condition relating to the Capital Securities to be performed
  or observed by the Issuer;

                  
  (b) the extension of time for the payment by the Issuer of all or any portion
  of the Distributions, the price payable upon the redemption of the Capital
  Securities, the Liquidation Distribution or any other sums payable under the
  terms of the Capital Securities or the extension of time for the performance
  of any other obligation under, arising out of, or in connection with, the
  Capital Securities (other than an extension of time for the payment of the
  Distributions, the price payable upon the redemption of the Capital
  Securities, the Liquidation Distribution or other sums payable that results
  from the extension of any interest payment period on the Debentures);

                    
  (c) any failure, omission, delay or lack of diligence on the part of the
  Holders to enforce, assert or exercise any right, privilege, power or remedy
  conferred on the Holders pursuant to the terms of the Capital Securities, or
  any action on the part of the Issuer granting indulgence or extension of any
  kind;

                    
  (d) the voluntary or involuntary liquidation, dissolution, sale of any
  collateral, receivership, insolvency, bankruptcy, assignment for the benefit
  of creditors, reorganization, arrangement, composition or readjustment of debt
  of, or other similar proceedings affecting, the Issuer or any of the assets of
  the Issuer;

                     (e) any invalidity of, or defect or deficiency in, the Capital Securities;

  

                     (f) the settlement or compromise of any obligation guaranteed hereby or hereby
  incurred; or

  

  

                                                                             
  10

  

                       
  (g)  any other circumstance whatsoever that might otherwise constitute a
  legal or equitable discharge or defense of a guarantor, it being the intent of
  this Section 4.3 that the obligations of the Guarantor hereunder shall be
  absolute and unconditional under any and all circumstances.

                      
  There shall be no obligation of the Holders to give notice to, or obtain
  consent of, the Guarantor with respect to the happening of any of the
  foregoing.

                     
  SECTION 4.4 Rights of Holders.

                     
  (a) The Holders of a Majority in liquidation amount of the Capital Securities
  have the right to direct the time, method and place of conducting any
  proceeding for any remedy available to the Guarantee Trustee in respect of
  this Guarantee or to direct the exercise of any trust or power conferred upon
  the Guarantee Trustee under this Guarantee; provided, however, that (subject
  to Sections 2.1 and 2.2) the Guarantee Trustee shall have the right to decline
  to follow any such direction if the Guarantee Trustee shall determine that the
  actions so directed would be unjustly prejudicial to the Holders not taking
  part in such direction or if the Guarantee Trustee being advised by legal
  counsel determines that the action or proceeding so directed may not lawfully
  be taken or if the Guarantee Trustee in good faith by its board of directors
  or trustees, executive committee or a trust committee of directors or trustees
  and/or Responsible Officers shall determine that the action or proceeding so
  directed would involve the Guarantee Trustee in personal liability.

                      
  (b) Any Holder of Capital Securities may institute a legal proceeding directly
  against the Guarantor to enforce the Guarantee Trustee's rights under this
  Guarantee, without first instituting a legal proceeding against the Issuer,
  the Guarantee Trustee or any other Person.  The Guarantor waives any
  right or remedy to require that any such action be brought first against the
  Issuer, the Guarantee Trustee or any other Person before so proceeding
  directly against the Guarantor.

                     
  SECTION 4.5 Guarantee of Payment.

                     
  This Guarantee creates a guarantee of payment and not of collection.

                     
  SECTION 4.6 Subrogation.

                     
  The Guarantor shall be subrogated to all (if any) rights of the Holders of
  Capital Securities against the Issuer in respect of any amounts paid to such
  Holders by the Guarantor under this Guarantee; provided, however, that the
  Guarantor shall not (except to the extent required by applicable provisions of
  law) be entitled to enforce or exercise any right that it may acquire by way
  of subrogation or any indemnity, reimbursement or other agreement, in all
  cases as a result of payment under this Guarantee, if, after giving effect to
  any such payment, any amounts are due and unpaid under this Guarantee. 
  If any amount shall be paid to the Guarantor in violation of the preceding
  sentence, the Guarantor agrees to hold such amount in trust for the Holders
  and to pay over such amount to the Holders.

  

  

                                                                                 
  11

  

                     
  SECTION 4.7 Independent Obligations.

                     
  The Guarantor acknowledges that its obligations hereunder are independent of
  the obligations of the Issuer with respect to the Capital Securities and that
  the Guarantor shall be liable as principal and as debtor hereunder to make
  Guarantee Payments pursuant to the terms of this Guarantee notwithstanding the
  occurrence of any event referred to in subsections (a) through (g), inclusive,
  of Section 4.3 hereof.

                     
  SECTION 4.8 Enforcement.

                     
  A Beneficiary may enforce the Obligations of the Guarantor contained in
  Section 4.1(b) directly against the Guarantor, and the Guarantor waives any
  right or remedy to require that any action be brought against the Issuer or
  any other person or entity before proceeding against the Guarantor.

                     
  The Guarantor shall be subrogated to all rights (if any) of any Beneficiary
  against the Issuer in respect of any amounts paid to the Beneficiaries by the
  Guarantor under this Guarantee; provided, however, that the Guarantor shall
  not (except to the extent required by applicable provisions of law) be
  entitled to enforce or exercise any rights that it may acquire by way of
  subrogation or any indemnity, reimbursement or other agreement, in all cases
  as a result of payment under this Guarantee, if, after giving effect to such
  payment, any amounts are due and unpaid under this Guarantee.  If any
  amount shall be paid to the Guarantor in violation of the preceding sentence,
  the Guarantor agrees to hold such amount in trust for the Beneficiaries and to
  pay over such amount to the Beneficiaries.

  ARTICLE V

  

  LIMITATION OF TRANSACTIONS; SUBORDINATION

                              
  SECTION 5.1 Limitation of Transactions.

                              
  So long as any Capital Securities remain outstanding, if (a) there shall have
  occurred and be continuing an Event of Default or (b) Debenture Issuer shall
  have selected an Extension Period as provided in the Indenture and such
  period, or any extension thereof, shall have commenced and be continuing, then
  the Guarantor may not (x) declare or pay any dividends or distributions on, or
  redeem, purchase, acquire, or make a liquidation payment with respect to, any
  of the Guarantor's capital stock, (y) make any payment of principal of or
  interest or premium, if any, on or repay, repurchase or redeem any debt
  securities of the Guarantor that rank in all respects pari passu with
  or junior in interest to the Debentures or (z) make any payment under any
  guarantees of the Guarantor that rank in all respects pari passu with
  or junior in interest to this Guarantee (other than (i) repurchases,
  redemptions or other acquisitions of shares of capital stock of the Guarantor
  (A) in connection with any employment contract, benefit plan or other similar
  arrangement with or for the benefit of one or more employees, officers,
  directors, or consultants, (B) in connection with a dividend reinvestment or
  stockholder stock purchase plan or (C) in connection with the issuance of
  capital stock of the Guarantor (or securities convertible into or exercisable
  for such capital stock), as consideration in an acquisition transaction
  entered into prior to the occurrence of the Event of Default or the 

  

  

                                                                           
  12

  

  applicable Extension Period, (ii) as
  a result of any exchange or conversion of any class or series of the Guarantor's
  capital stock (or any capital stock of a subsidiary of the Guarantor) for any
  class or series of the Guarantor's capital stock or of any class or series
  of the Guarantor's indebtedness for any class or series of the Guarantor's
  capital stock, (iii) the purchase of fractional interests in shares of the
  Guarantor's capital stock pursuant to the conversion or exchange provisions
  of such capital stock or the security being converted or exchanged, (iv) any
  declaration of a dividend in connection with any stockholder's rights plan,
  or the issuance of rights, stock or other property under any stockholder's
  rights plan, or the redemption or repurchase of rights pursuant thereto, or
  (v) any dividend in the form of stock, warrants, options or other rights where
  the dividend stock or the stock issuable upon exercise of such warrants,
  options or other rights is the same stock as that on which the dividend is
  being paid or ranks pari passu with or junior in interest to such
  stock).

                 
  SECTION 5.2 Ranking.

                 
  This Guarantee will constitute an unsecured obligation of the Guarantor and
  will rank subordinate and junior in right of payment to all present and future
  Senior Indebtedness (as defined in the Indenture) of the Guarantor.  By
  their acceptance thereof, each Holder of Capital Securities agrees to the
  foregoing provisions of this Guarantee and the other terms set forth herein.

  ARTICLE VI

  

  TERMINATION

                 
  SECTION 6.1 Termination.

                 
  This Guarantee shall terminate as to the Capital Securities (i) upon full
  payment of the price payable upon redemption of all Capital Securities then
  outstanding, (ii) upon the distribution of all of the Debentures to the
  Holders of all of the Capital Securities or (iii) upon full payment of the
  amounts payable in accordance with the Declaration upon dissolution of the
  Issuer.  This Guarantee will continue to be effective or will be
  reinstated, as the case may be, if at any time any Holder of Capital
  Securities must restore payment of any sums paid under the Capital Securities
  or under this Guarantee.

  ARTICLE VII

  

  INDEMNIFICATION

              SECTION
  7.1 Exculpation.

              (a) No
  Indemnified Person shall be liable, responsible or accountable in damages or
  otherwise to the Guarantor or any Covered Person for any loss, damage or claim
  incurred by reason of any act or omission of such Indemnified Person in good
  faith in accordance with this Guarantee and in a manner that such Indemnified
  Person reasonably believed to be within the scope of the authority conferred
  on such Indemnified Person by this Guarantee or by law, except that an
  Indemnified Person shall be liable for any such loss, damage or claim 

  

  

                                                                             
  13

  

  incurred by reason of such Indemnified Person's negligence, willful
  misconduct or bad faith with respect to such acts or omissions.

                 
  (b) An Indemnified Person shall be fully protected in relying in good faith
  upon the records of the Issuer or the Guarantor and upon such information,
  opinions, reports or statements presented to the Issuer or the Guarantor by
  any Person as to matters the Indemnified Person reasonably believes are within
  such other Person's professional or expert competence and who, if selected
  by such Indemnified Person, has been selected with reasonable care by such
  Indemnified Person, including information, opinions, reports or statements as
  to the value and amount of the assets, liabilities, profits, losses, or any
  other facts pertinent to the existence and amount of assets from which
  Distributions to Holders of Capital Securities might properly be paid.

                 
  SECTION 7.2 Indemnification.

                 
  (a) The Guarantor agrees to indemnify each Indemnified Person for, and to hold
  each Indemnified Person harmless against, any and all loss, liability, damage,
  claim or expense incurred without negligence, willful misconduct or bad faith
  on the part of the Indemnified Person, arising out of or in connection with
  the acceptance or administration of the trust or trusts hereunder, including
  but not limited to the costs and expenses (including reasonable legal fees and
  expenses) of the Indemnified Person defending itself against, or
  investigating, any claim or liability in connection with the exercise or
  performance of any of the Indemnified Person's powers or duties
  hereunder.  The obligation to indemnify as set forth in this Section 7.2
  shall survive the resignation or removal of the Guarantee Trustee and the
  termination of this Guarantee.

                 
  (b) Promptly after receipt by an Indemnified Person under this Section 7.2 of
  notice of the commencement of any action, such Indemnified Person will, if a
  claim in respect thereof is to be made against the Guarantor under this
  Section 7.2, notify the Guarantor in writing of the commencement thereof; but
  the failure so to notify the Guarantor (i) will not relieve the Guarantor from
  liability under paragraph (a) above unless and to the extent that the
  Guarantor did not otherwise learn of such action and such failure results in
  the forfeiture by the Guarantor of substantial rights and defenses and (ii)
  will not, in any event, relieve the Guarantor from any obligations to any
  Indemnified Person other than the indemnification obligation provided in
  paragraph (a) above.  The Guarantor shall be entitled to appoint counsel
  of the Guarantor's choice at the Guarantor's expense to represent the
  Indemnified Person in any action for which indemnification is sought (in which
  case the Guarantor shall not thereafter be responsible for the fees and
  expenses of any separate counsel retained by the Indemnified Person or Persons
  except as set forth below); provided, however, that such counsel shall be
  satisfactory to the Indemnified Person.  Notwithstanding the Guarantor's
  election to appoint counsel to represent the Indemnified Person in any action,
  the Indemnified Person shall have the right to employ separate counsel
  (including local counsel), and the Guarantor shall bear the reasonable fees,
  costs and expenses of such separate counsel, if (i) the use of counsel chosen
  by the Guarantor to represent the Indemnified Person would present such
  counsel with a conflict of interest, (ii) the actual or potential defendants
  in, or targets of, any such action include both the Indemnified Person and the
  Guarantor and the Indemnified Person shall have reasonably concluded that
  there may be legal defenses available to it and/or other Indemnified Persons

  

                                                                              
  14

  

   which are different from or additional to those available to the
  Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory to
  the Indemnified Person to represent the Indemnified Person within a reasonable
  time after notice of the institution of such action or (iv) the Guarantor
  shall authorize the Indemnified Person to employ separate counsel at the
  expense of the Guarantor.  The Guarantor will not, without the prior
  written consent of the Indemnified Persons, settle or compromise or consent to
  the entry of any judgment with respect to any pending or threatened claim,
  action, suit or proceeding in respect of which indemnification or contribution
  may be sought hereunder (whether or not the Indemnified Persons are actual or
  potential parties to such claim or action) unless such settlement, compromise
  or consent includes an unconditional release of each Indemnified Person from
  all liability arising out of such claim, action, suit or proceeding.

                 
  SECTION 7.3 Compensation; Reimbursement of Expenses.

                 
  The Guarantor agrees:

                 
  (a) to pay to the Guarantee Trustee from time to time such compensation for
  all services rendered by it hereunder as the parties shall agree to from time
  to time (which compensation shall not be limited by any provision of law in
  regard to the compensation of a trustee of an express trust); and

                 
  (b) except as otherwise expressly provided herein, to reimburse the Guarantee
  Trustee upon request for all reasonable expenses, disbursements and advances
  incurred or made by it in accordance with any provision of this Guarantee
  (including the reasonable compensation and the expenses and disbursements of
  its agents and counsel), except any such expense, disbursement or advance as
  may be attributable to the negligence, willful misconduct or bad faith of the
  Guarantee Trustee.

                    
  The provisions of this Section 7.3 shall survive the resignation or removal of
  the Guarantee Trustee and the termination of this Guarantee.

  ARTICLE VIII

  

  MISCELLANEOUS

                 
  SECTION 8.1 Successors and Assigns.

                 
  All guarantees and agreements contained in this Guarantee shall bind the
  successors, assigns, receivers, trustees and representatives of the Guarantor
  and shall inure to the benefit of the Holders of the Capital Securities then
  outstanding.  Except in connection with any merger or consolidation of
  the Guarantor with or into another entity or any sale, transfer or lease of
  the Guarantor's assets to another entity, in each case to the extent
  permitted under the Indenture, the Guarantor may not assign its rights or
  delegate its obligations under this Guarantee without the prior approval of
  the Holders of a Majority in liquidation amount of the Capital Securities.

  

  

                                                                             
  15

  

                 
  SECTION 8.2 Amendments.

  Except with respect to any changes
  that do not adversely affect the powers, preferences, rights or interests of
  Holders of the Capital Securities in any material respect (in which case no
  approval of Holders will be required), this Guarantee may be amended only with
  the prior approval of the Holders of a Majority in liquidation amount of the
  Capital Securities.  The provisions of the Declaration with respect to
  amendments thereof shall apply equally with respect to amendments of the
  Guarantee.

                 
  SECTION 8.3 Notices.

                 
  All notices provided for in this Guarantee shall be in writing, duly signed by
  the party giving such notice, and shall be delivered, telecopied or mailed by
  first class mail, as follows:

                 
  (a)  if given to the Guarantee Trustee, at the Guarantee Trustee's
  mailing address set forth below (or such other address as the Guarantee
  Trustee may give notice of to the Holders of the Capital Securities):
  Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
  Wilmington, Delaware 19890-0001, Attention: Corporate Capital Markets,
  Telecopy: 302-636-4140, Telephone:  302-651-1000;

                 
  (b) if given to the Guarantor, at the Guarantor's mailing address set forth
  below (or such other address as the Guarantor may give notice of to the
  Holders of the Capital Securities and to the Guarantee Trustee): PFF Bancorp,
  Inc., 350 South Garey Avenue, Pomona, California 91766, Attention: Gregory C.
  Talbott, Telecopy: 909 620-0296, Telephone: 909 623-2323; or

                 
  (c) if given to any Holder of the Capital Securities, at the address set forth
  on the books and records of the Issuer.

                 
  All such notices shall be deemed to have been given when received in person,
  telecopied with receipt confirmed, or mailed by first class mail, postage
  prepaid, except that if a notice or other document is refused delivery or
  cannot be delivered because of a changed address of which no notice was given,
  such notice or other document shall be deemed to have been delivered on the
  date of such refusal or inability to deliver.

                 
  SECTION 8.4 Benefit.

                 
  This Guarantee is solely for the benefit of the Holders of the Capital
  Securities and, subject to Section 2.1(a), is not separately transferable from
  the Capital Securities.

                 
  SECTION 8.5 Governing Law.

  THIS GUARANTEE SHALL BE
  GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
  YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES OF SAID STATE OTHER THAN
  SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

  

                                                                             
  16

  

                 
  SECTION 8.6 Counterparts.

                 
  This Guarantee may contain more than one counterpart of the signature page and
  this Guarantee may be executed by the affixing of the signature of the
  Guarantor and the Guarantee Trustee to any of such counterpart signature
  pages.  All of such counterpart signature pages shall be read as though
  one, and they shall have the same force and effect as though all of the
  signers had signed a single signature page.

  

                                                                             
  17
  

                 
  THIS GUARANTEE is executed as of the day and year first above written.

                                                                     
  PFF Bancorp, Inc.,

                                                                     
  as Guarantor

                                                                     
  By:   /s/  Gregory C. Talbott 

                                                                     
  Name: Gregory C. Talbott

                                                                     
  Title:   Executive Vice President, Chief

                                                                               
  Financial Officer and Treasurer   

                                                                    
  WILMINGTON TRUST COMPANY,

                                                                     
  as Guarantee Trustee

                                                                     
  By:  /s/ W. Thomas Morris II    

                                                                     
  Name: W. Thomas Morris, II

                                                                     
  Title:  Senior Financial Services Officer

   

 

18October 6 2004 Exhibit 4.15

EXHIBIT 4.15

THIS CLASS A WARRANT AND THE UNDERLYING SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS, HAVE BEEN TAKEN FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF, AND MAY NOT BE SOLD OR TRANSFERRED OR OFFERED FOR SALE OR
TRANSFER UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND OTHER
APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH SECURITIES IS THEN IN EFFECT, OR
IN THE OPINION OF COUNSEL (WHICH OPINION IS REASONABLY SATISFACTORY TO THE
ISSUER OF THESE SECURITIES), SUCH REGISTRATION UNDER THE SECURITIES ACT AND
OTHER APPLICABLE SECURITIES LAWS IS NOT REQUIRED.

	
Date: September 30, 2004
	
Warrant to Purchase

                              198,361 Shares

DIGITAL VIDEO SYSTEMS, INC.

                  (Incorporated under the laws of the State of Delaware)

CLASS A WARRANT FOR THE PURCHASE OF SHARES OF

                  THE $0.0001 PAR VALUE COMMON STOCK OF

                  DIGITAL VIDEO SYSTEMS, INC.

Warrant Price: $0.66 per share, subject to adjustment as
provided below.

THIS IS TO CERTIFY that, for value received, OXCAL VENTURE
FUND, LP and its registered assigns (collectively, the "Holder"), is entitled to
purchase, subject to the terms and conditions hereinafter set forth, up to
198,361 shares of the $0.0001 par value common stock ("Common Stock") of Digital
Video Systems, Inc., a Delaware corporation (the "Company"), and to receive
certificate(s) for the Common Stock so purchased.

	Exercise Period and Vesting. Subject to the final
sentence of this Section 1, the exercise period is the period beginning on the
earlier of six months from September 30, 2004, which is the date of the closing
of the transaction in which these Warrants was originally issued (the "Closing
Date") or the effective date of the registration statement covering the resale
of the Common Stock issuable upon exercise of this Warrant (the "Effective
Date") and ending at 5:00 p.m., California time, on the fifth anniversary of the
Closing Date (the "Exercise Period"). This Warrant will terminate automatically
and immediately upon (a) the expiration of the Exercise Period or (b) a Change
of Control. For purposes of this Section 1, a "Change of Control" shall mean (i)
any consolidation or merger involving the Company pursuant to which the
Company's stockholders own less than 50% of the voting securities of the
surviving entity or (ii) the sale of all or substantially all of the assets of
the Company. The foregoing notwithstanding, this Warrant shall not be
exercisable until the Company's stockholders have affirmatively voted in favor
of the transaction in which the Warrants are be issued to the initial holder,
together with the Company's Series C Convertible Preferred Stock.

	Exercise of Warrant. This Warrant may be
exercised, in whole or in part, at any time and from time to time during the
Exercise Period. Such exercise shall be accomplished by tender to the Company of
the purchase price set forth above as the warrant price (the "Warrant Price"),
in cash, by wire transfer or by certified check or bank cashier's check, payable
to the order of the Company, together with presentation and surrender to the
Company of this Warrant with an executed subscription in substantially the form
attached hereto as Exhibit A-1 (the "Subscription"). Upon receipt of the
foregoing, the Company will deliver to the Holder, as promptly as possible, a
certificate or certificates representing the shares of Common Stock so
purchased, registered in the name of the Holder or its transferee (as permitted
under Section 4 below). With respect to any exercise of this Warrant, the Holder
will for all purposes be deemed to have become the holder of record of the
number of shares of Common Stock purchased hereunder on the date this Warrant, a
properly executed Subscription and payment of the Warrant Price is received by
the Company (the "Exercise Date"), irrespective of the date of delivery of the
certificate evidencing such shares, except that, if the date of such receipt is
a date on which the stock transfer books of the Company are closed, such person
will be deemed to have become the holder of such shares at the close of business
on the next succeeding date on which the stock transfer books are open.
Fractional shares of Common Stock will not be issued upon the exercise of this
Warrant. In lieu of any fractional shares that would have been issued but for
the immediately preceding sentence, the Holder will be entitled to receive cash
equal to the current market price of such fraction of a share of Common Stock on
the trading day immediately preceding the Exercise Date. In the event this
Warrant is exercised in part, the Company shall issue a new Warrant to the
Holder covering the aggregate number of shares of Common Stock as to which this
Warrant remains exercisable for that is otherwise identical with this Warrant.
The Company acknowledges and agrees that this Warrant was issued on the Issuance
Date.

	Compliance with Act. The holder of this
Warrant, by acceptance hereof, agrees that this Warrant, and the Common Stock to
be issued upon exercise hereof are being acquired for investment and that such
holder will not offer, sell or otherwise dispose of this Warrant, or any Common
Stock except under circumstances which will not result in a violation of the
Securities Act or any applicable state securities laws. Upon exercise of this
Warrant, unless the Common Stock being acquired are registered under the
Securities Act and any applicable state securities laws or an exemption from
such registration is available, the holder hereof shall confirm in writing that
the Common Stock so purchased are being acquired for investment and not with a
view toward distribution or resale in violation of the Securities Act and shall
confirm such other matters related thereto as may be reasonably requested by the
Company. This Warrant and all Common Stock issued upon exercise of this Warrant
(unless registered under the Securities Act and any applicable state securities
laws) shall be stamped or imprinted with a legend in substantially the following
form:

"THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAWS, HAVE BEEN TAKEN FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
WITH, THE SALE OR DISTRIBUTION THEREOF, AND MAY NOT BE SOLD OR TRANSFERRED OR
OFFERED FOR SALE OR TRANSFER UNLESS A REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO SUCH
SECURITIES IS THEN IN EFFECT, OR IN THE OPINION OF COUNSEL (WHICH OPINION IS
REASONABLY SATISFACTORY TO THE ISSUER OF THESE SECURITIES), SUCH REGISTRATION
UNDER THE SECURITIES ACT AND OTHER APPLICABLE SECURITIES LAWS IS NOT
REQUIRED.

Said legend shall be removed by the Company, upon the
request of a holder, at such time as the restrictions on the transfer of the
applicable security shall have terminated.

	Transferability and Exchange.

	This Warrant, and the Common Stock issuable upon the
exercise hereof, may not be sold, transferred, pledged or hypothecated unless
the Company shall have been provided with written notice of the sale or other
distribution describing briefly the manner thereof, together with an opinion of
counsel, or other evidence, reasonably satisfactory to it, that such transfer is
not in violation of the Securities Act, and any applicable state securities laws
or unless such transfer shall have been registered under the Securities Act of
1933, as amended. Subject to the satisfaction of the aforesaid condition, this
Warrant and the underlying shares of Common Stock shall be transferable from
time to time by the Holder upon written notice to the Company. Promptly upon
receiving such written notice and reasonably satisfactory opinion or other
evidence, if so requested, the Company, as promptly as practicable but no later
than fifteen (15) days after receipt of the written notice, shall notify such
holder that such holder may sell or otherwise dispose of this Warrant or such
Common Stock, all in accordance with the terms of the notice delivered to the
Company. If a determination has been made pursuant to this Section 4(a) that the
opinion of counsel for the holder or other evidence is not reasonably
satisfactory to the Company, the Company shall so notify the holder promptly
with details thereof after such determination has been made. Notwithstanding the
foregoing, this Warrant or such Common Stock may, as to such federal laws, be
offered, sold or otherwise disposed of in accordance with Rule 144 or 144A under
the Securities Act, provided that the Company shall have been furnished with
such information as the Company may reasonably request to provide a reasonable
assurance that the provisions of Rule 144 or 144A have been satisfied. Each
certificate representing this Warrant or the Common Stock thus transferred
(except a transfer pursuant to Rule 144 or 144A) shall bear a legend as to the
applicable restrictions on transferability in order to ensure compliance with
such laws, unless in the aforesaid opinion of counsel for the holder, such
legend is not required in order to ensure compliance with such laws. The Company
may issue stop transfer instructions to its transfer agent in connection with
such restrictions. 

	If this Warrant is transferred, in whole or in part, the
Company shall, upon surrender of this Warrant to the Company, deliver to each
transferee a Warrant evidencing the rights of such transferee to purchase the
number of shares of Common Stock that such transferee is entitled to purchase
pursuant to such transfer. The Company may place a legend similar to the legend
at the top of this Warrant on any replacement Warrant and, on each certificate
representing shares issuable upon exercise of this Warrant or any replacement
Warrants. Only a registered Holder may enforce the provisions of this Warrant
against the Company. A transferee of the original registered Holder becomes a
registered Holder only upon delivery to the Company of the original Warrant and
an original Assignment, substantially in the form set forth in
Exhibit B attached hereto.

	This Warrant is exchangeable upon its surrender by the
Holder to the Company for new Warrants of like tenor and date representing in
the aggregate the right to purchase the number of shares purchasable hereunder,
each of such new Warrants to represent the right to purchase such number of
shares as may be designated by the Holder at the time of such
surrender.

	In addition to the exchange provided for in
paragraph (c) above, in lieu of cash exercising this Warrant, the Holder
may elect to exchange this Warrant in whole or in part for shares of Common
Stock equal to the value of this Warrant (or the portion thereof being
canceled). The number of shares of Common Stock to be issued on any such
exchange of this Warrant will be determined as follows:

	
CS = WCS x (FMV - EP)

                 FMV

Where:

CS-equals the number of shares of Common Stock to be issued to the
Holder;

WCS-equals the number of shares of Common Stock purchasable under
this Warrant;

FMV-equals the current market price of one share of Common Stock as
defined in Section 5(b); and

EP-equals the Warrant Price.

	In order to exchange this Warrant, in whole or in part,
for shares of Common Stock, the Holder shall deliver to the Company a written
notice of the Holder's election to so exchange this Warrant (an "Exchange
Notice"), which Exchange Notice shall be irrevocable and specify the number of
shares of Common Stock for which this Warrant is to be so exchanged, together
with this Warrant (the date on which such delivery shall have taken place being
hereinafter sometimes referred to as the "Exchange Date"). Such Exchange Notice
shall be in the form of the subscription form appearing at the end of this
Warrant as Exhibit A-2, duly executed by the Holder.

	Upon receipt of such Exchange Notice and Warrant, the
Company shall, as promptly as possible, execute (or cause to be executed) and
deliver (or cause to be delivered) to the Holder a certificate or certificates
representing the aggregate number of full shares of Common Stock issuable upon
such exchange, together with cash in lieu of any fraction of a share, as
hereafter provided. The stock certificate or certificates so delivered shall be,
to the extent possible, in such denomination or denominations as the exercising
Holder shall reasonably request in the Exchange Notice and shall be registered
in the name of the Holder or such other name as shall be designated in the
Exchange Notice and permitted by other provisions of this Warrant. This Warrant
shall be deemed to have been exchanged, and such certificate or certificates
shall be deemed to have been issued, and the Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the Exchange Date.

	If this Warrant shall have been exchanged in part, the
Company shall, at the time of delivery of the certificate or certificates
representing the shares of Common Stock being issued, deliver to the Holder a
new Warrant evidencing the rights of the Holder to purchase the unpurchased
shares of Common Stock called for by this Warrant. Such new Warrant shall in all
other respects be identical with this Warrant.

	Adjustments to Warrant Price and Number of Shares
Subject to Warrant. The Warrant Price and the number of shares of Common
Stock purchasable upon the exercise of this Warrant are subject to adjustment
from time to time upon the occurrence of any of the events specified in this
Section 5.

	In case the Company shall (i) pay a dividend or make
a distribution in shares of Common Stock or other securities,
(ii) subdivide its outstanding shares of Common Stock into a greater number
of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares, or (iv) issue by reclassification of its shares
of Common Stock other securities of the Company, then the Warrant Price in
effect at the time of the record date for such dividend or on the effective date
of such subdivision, combination or reclassification, and/or the number and kind
of securities issuable on such date, shall be proportionately adjusted so that
the Holder of any Warrant thereafter exercised shall be entitled to receive the
aggregate number and kind of shares of Common Stock (or such other securities
other than Common Stock) of the Company, at the same aggregate Warrant Price,
that, if such Warrant had been exercised immediately prior to such date, the
Holder would have owned upon such exercise and been entitled to receive by
virtue of such dividend, distribution, subdivision, combination or
reclassification. Such adjustment shall be made successively whenever any event
listed above shall occur.

	In case the Company shall fix a record date for the
making of a distribution to all holders of Common Stock (including any such
distribution made in connection with a consolidation or merger in which the
Company is the surviving corporation) of cash, evidences of indebtedness or
assets, or subscription rights or warrants, the Warrant Price to be in effect
after such record date shall be determined by multiplying the Warrant Price in
effect immediately prior to such record date by a fraction, the numerator of
which shall be the current market price per share of Common Stock on such record
date, less the amount of cash so to be distributed (or the fair market value (as
determined in good faith by, and reflected in a formal resolution of, the Board
of Directors of the Company) of the portion of the assets or evidence of
indebtedness so to be distributed, or of such subscription rights or warrants,
applicable to one share of Common Stock, and the denominator of which shall be
such current market price per share of Common Stock; in addition, the number of
shares of Common Stock for which this Warrant shall thereafter be exercisable
shall be adjusted to a number determined by dividing the number of such shares
for which this Warrant was theretofore exercisable by the above fraction. Such
adjustment shall be made successively whenever such a record date is fixed; and
in the event that such distribution is not so made, the Warrant Price shall
again be adjusted to be the Warrant Price which would then be in effect if such
record date had not been fixed.

	For the purpose of any computation under any subsection
of this Section 5, the "current market price" per share of Common Stock on
any date shall be the average per share price of the Common Stock on the 10
trading days immediately prior to the event requiring an adjustment hereunder,
which per share price shall be: (i) if the principal trading market for the
Common Stock is a national or regional securities exchange, the closing price on
such exchange on such day; or (ii) if sales prices for shares of Common
Stock are reported by the Nasdaq National Market system or Nasdaq SmallCap
Market (or a similar system then in use), the last reported sales price so
reported on such day; or (iii) if neither (i) nor (ii) above are
applicable, and if bid and ask prices for shares of Common Stock are reported in
the over-the-counter market by Nasdaq (or, if not so reported, by the National
Quotation Bureau), the average of the high bid and low ask prices so reported on
such day. Notwithstanding the foregoing, if there is no reported closing price,
last reported sales price, or bid and ask prices, as the case may be, for the
day in question, then the current market price shall be determined as of the
latest date prior to such day for which such closing price, last reported sales
price, or bid and ask prices, as the case may be, are available, unless such
securities have not been traded on an exchange or in the over-the-counter market
for 30 or more days immediately prior to the day in question, in which case the
current market price shall be determined in good faith by, and reflected in a
formal resolution of, the Board of Directors of the Company.

	Notwithstanding any provision herein to the contrary, no
adjustment in the Warrant Price shall be required unless such adjustment would
require an increase or decrease of at least one percent in the Warrant Price;
provided, however, that any adjustments which by reason of this subsection (d)
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 the nearest one-hundredth of a share, as the case may
be.

	In the event that at any time, as a result of an
adjustment made pursuant to subsection (a) above, the Holder of any Warrant
thereafter exercised shall become entitled to receive any shares of capital
stock of the Company other than shares of Common Stock or any other securities
or assets, thereafter the number of such other shares or other securities or
assets so receivable upon exercise of any Warrant shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable
to the provisions with respect to the shares of Common Stock contained in this
Section 5, and the other provisions of this Warrant shall apply on like
terms to any such other shares or other securities or assets.

	If the Company merges or consolidates into or with
another corporation or entity, or if another corporation or entity merges into
or with the Company (excluding such a merger in which the Company is the
surviving or continuing corporation and which does not result in any
reclassification, conversion, exchange, or cancellation of the outstanding
shares of Common Stock), or if all or substantially all of the assets or
business of the Company are sold or transferred to another corporation, entity,
or person, then, as a condition to such consolidation, merger, or sale (a
"Transaction"), lawful and adequate provision shall be made whereby, and the
successors or acquiring corporation, entity or person shall expressly agree in
writing that, the Holder shall have the right from and after the Transaction to
receive, upon exercise of this Warrant and upon the terms and conditions
specified herein and in lieu of the shares of the Common Stock or other
securities or assets that would have been issuable if this Warrant had been
exercised immediately before the Transaction, such shares of stock, securities,
or assets as the Holder would have owned immediately after the Transaction if
the Holder had exercised this Warrant immediately before the effective date of
the Transaction.

	In case any event shall occur as to which the other
provisions of this Section 5 are not strictly applicable but the failure to
make any adjustment would not fairly protect the purchase rights represented by
this Warrant in accordance with the essential intent and principles hereof,
then, in each such case, the Company shall effect such adjustment, on a basis
consistent with the essential intent and principles established in this
Section 5, as may be necessary to preserve, without dilution, the purchase
rights represented by this Warrant.

	Reservation of Shares. The Company agrees at all
times to reserve and hold available out of its authorized but unissued shares of
Common Stock a sufficient number of shares of Common Stock to provide for the
exercise of the purchase rights provided herein. The Company further covenants
and agrees that all shares of Common Stock that may be delivered upon the
exercise of this Warrant will, upon delivery, be fully paid and nonassessable
and free from all taxes, liens and charges with respect to the purchase thereof
hereunder.

	Notices to Holder. Upon any adjustment of the
Warrant Price (or number of shares of Common Stock purchasable upon the exercise
of this Warrant) pursuant to Section 5, the Company shall promptly
thereafter cause to be given to the Holder written notice of such adjustment.
Such notice shall include the Warrant Price (and/or the number of shares of
Common Stock purchasable upon the exercise of this Warrant) after such
adjustment, and shall set forth in reasonable detail the Company's method of
calculation and the facts upon which such calculations were based. Where
appropriate, such notice shall be given in advance and included as a part of any
notice required to be given under the other provisions of this
Section 7.

In the event of (a) any fixing by the Company of a
record date with respect to the holders of any class of securities of the
Company for the purpose of determining which of such holders are entitled to
dividends or other distributions, or any rights to subscribe for, purchase or
otherwise acquire any shares of capital stock of any class or any other
securities or property, or to receive any other right, (b) any capital
reorganization of the Company, or reclassification or recapitalization of the
capital stock of the Company or any transfer of all or substantially all of the
assets or business of the Company to, or consolidation or merger of the Company
with or into, any other entity or person, or (c) any voluntary or
involuntary dissolution or winding up of the Company, then and in each such
event the Company will give the Holder a written notice specifying, as the case
may be (i) the record date for the purpose of such dividend, distribution,
or right, and stating the amount and character of such dividend, distribution,
or right; or (ii) the date on which any such reorganization,
reclassification, recapitalization, transfer, consolidation, merger, conveyance,
dissolution, liquidation, or winding up is to take place and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such capital
stock or securities receivable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Stock (or such other stock
securities) for securities or other property deliverable upon such event. Any
such notice shall be given at least 10 days prior to the earliest date therein
specified.

	No Rights as a Stockholder. This Warrant does not
entitle the Holder to any voting rights or other rights as a stockholder of the
Company, nor to any other rights whatsoever except the rights herein set
forth.

	Additional Covenants of the Company. For so long
as the Common Stock is listed for trading on any regional or national securities
exchange or Nasdaq (National Market or SmallCap Market), the Company shall, upon
issuance of any shares for which this Warrant is exercisable, at its expense,
promptly obtain and maintain the listing of such shares.

The Company shall comply with the reporting requirements of
Sections 13 and 15(d) of the Securities Exchange Act of 1934, as amended,
for so long as and to the extent that such requirements apply to the
Company.

The Company shall not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant. Without limitation of the generality of the foregoing, the Company
(a) will at all times reserve and keep available, solely for issuance and
delivery upon exercise of this Warrant, shares of Common Stock issuable from
time to time upon exercise of this Warrant, (b) will not increase the par
value of any shares of capital stock receivable upon exercise of this Warrant
above the amount payable therefor upon such exercise, and (c) will take all
such actions as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable stock.

	Representation and Covenants of Holder.
Holder represents and covenants to the Company as follows:

	This Warrant and the Common Stock issuable upon exercise
of this Warrant will be acquired for investment for Holder's own account, and
not as a nominee or agent and not with a view to the distribution of any part
thereof. Holder further represents that it does not have any contract,
undertaking agreement or arrangement with any person to sell, transfer or grant
participations to such person, or to any third person, with respect to this
Warrant. Upon exercise of this Warrant, the Holder shall, if so requested by the
Company, confirm in writing, in a form satisfactory to the Company, that the
Common Stock issuable upon exercise of this Warrant are being acquired for
investment purposes and not with a view toward distribution or resale, other
than in compliance with applicable securities laws, including the Securities
Act.

	Holder understands (i) that the Warrant and the Common
Stock issuable upon exercise of this Warrant are not registered under the
Securities Act, or qualified under applicable state securities laws on the
ground that the issuance of this Warrant will be exempt from the registration
and qualifications requirements thereof; (ii) that the Company's reliance on
such exemption is predicated on the representations set forth in this Section
10; and (iii) that the Warrant and the Common Stock issuable upon exercise of
this must be held by the Holder indefinitely, and that the Holder must therefore
bear the economic risk of such investment indefinitely, unless a subsequent
disposition thereof is registered under the Securities Act or is exempted from
such registration.

	Holder represents and warrants that Holder is familiar
with the provisions of Rule 144 promulgated under the Securities Act which, in
substance, permits limited public resale of "restricted securities" acquired,
directly or indirectly, from the issuer thereof (or from an affiliate of such
issuer) in a non-public offering subject to the satisfaction of certain
conditions, including, among other things: (i) the availability of certain
public information about the Company; (ii) the resale occurring not less than
one year after the party has purchased, and made full payment for, within the
meaning of Rule 144, the securities to be sold; and (iii) in the case of an
affiliate, or of a non-affiliate who has held the securities less than two
years, the sale being made through a broker in an unsolicited "broker's
transaction" or in transactions directly with a market maker (as such term as
defined under the Securities Exchange Act of 1934, as amended) and the amount of
securities being sold during any three month period not exceeding the specified
limitations stated therein, if applicable. Holder acknowledges that in the event
the applicable requirements of Rule 144 are not met, registration under the
Securities Act or compliance with another exemption from registration will be
required for any disposition of the Common Stock issuable upon exercise of this
Warrant.

	Holder has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of its
investment, and has the ability to bear the economic risks of its
investment.

	Holder has received and reviewed this Warrant; it, its
attorney and its accountant have had access to, and an opportunity to review all
documents and other materials requested of the Company; it and they have been
given an opportunity to ask any and all questions of and receive answers from,
the Company concerning the terms and conditions of this Warrant and to evaluate
the suitability of an investment in this Warrant; and, in evaluating the
suitability of an investment in this Warrant; it and they have not relied upon
any representations or other information (whether oral or written) other than as
set forth herein.

	Holder hereby agrees that, in connection with a public
offering of the Company's securities, during the period of duration specified by
the Company and an underwriter of Common Stock or other securities of the
Company, following the effective date of a registration statement of the Company
filed under the Securities Act, it shall not, to the extent requested by the
Company and such underwriter, directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any
option to purchase or otherwise transfer or dispose of (other than to donees who
agree to be similarly bound) any securities of the Company held by it at any
time during such period except common stock included in such registration;
provided, however, that:

	all officers and directors of the Company enter into
similar agreements; and

	such market stand-off time period shall not exceed one
hundred eighty (180) days.

Holder agrees to provide to the other underwriters of any
public offering such further agreements as such underwriter may reasonably
request in connection with this market stand-off agreement, provided that the
terms of such agreements are substantially consistent with the provisions of
this Section 10(f). In order to enforce the foregoing covenant, the Company
may impose stop-transfer instructions with respect to the shares underlying this
Warrant until the end of such period.

Notwithstanding the foregoing, the obligations described in
this Section 10(f) shall not apply to a registration relating solely to
employee benefit plans on Form S-1 or Form S-8 or similar forms which may be
promulgated in the future, or a registration relating solely to an SEC Rule 145
transaction.

	Successors and Assigns. This Agreement
shall be binding upon and inure to the benefit of the Company, the Holder and
their respective successors and permitted assigns.

	Notices. The Company agrees to maintain a ledger
of the ownership of this Warrant (the "Ledger"). Any notice hereunder shall be
given by personal delivery (including by courier, by facsimile on a business
day, receipt of which is confirmed or by registered or certified mail: if to the
Company, at its principal executive office and, if to the Holder, to its address
shown in the Ledger of the Company; provided, however, that the Holder may at
any time on three (3) days written notice to the Company designate or substitute
another address where notice is to be given. Notice shall be deemed given and
received when delivered in person or by courier, when sent by facsimile on a
business day if the sender obtains a confirmation of such transmission or three
business days after a certified or registered letter, properly addressed with
postage prepaid, is deposited in the U.S. mail.

	Severability. Every provision of this Warrant is
intended to be severable. If any term or provision hereof is illegal or invalid
for any reason whatsoever, such illegality or invalidity shall not affect the
remainder of this Warrant.

	Governing Law. This Warrant shall be governed by
and construed in accordance with the laws of the State of California without
giving effect to the principles of choice of laws thereof.

	Attorneys' Fees; Remedies. In any action or
proceeding brought to enforce any provision of this Warrant, the prevailing
party shall be entitled to recover reasonable attorneys' fees in addition to its
costs and expenses and any other available remedy.

	Entire Agreement. This Warrant (including the
Exhibits attached hereto) constitutes the entire understanding between the
Company and the Holder with respect to the subject matter hereof, and supersedes
all prior negotiations, discussions, agreements and understandings relating to
such subject matter.

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

Digital Video Systems, Inc.

 

 

By: /s/ Thomas A. Spanier

          Thomas A. Spanier

        Chief Executive Officer

Accepted

Oxcal Venture Fund, LP

 

By: ____________________________

         Stevan A. Birnbaum, President of

        Oxcal Venture Corp., the General Partner

[Signature Page to Warrant]

EXHIBIT A -1

SUBSCRIPTION FORM

(To be Executed by the Holder to Exercise the Rights To
Purchase Common Stock Evidenced by the Within Warrant)

The undersigned hereby irrevocably subscribes for
_________ shares (the "Stock") of the Common Stock of Digital Video Systems,
Inc. (the "Company") pursuant to and in accordance with the terms and conditions
of the attached Warrant (the "Warrant"), and hereby makes payment of
$____________ therefor by tendering cash, wire transferring or delivering a
certified check or bank cashier's check, payable to the order of the Company.
The undersigned requests that a certificate for the Stock be issued in the name
of the undersigned and be delivered to the undersigned at the address stated
below. If the Stock is not all of the shares purchasable pursuant to the
Warrant, the undersigned requests that a new Warrant of like tenor for the
balance of the remaining shares purchasable thereunder be delivered to the
undersigned at the address stated below.

In connection with the issuance of the Stock, I hereby
represent to the Company that I am acquiring the Stock for my own account for
investment and not with a view to, or for resale in connection with, a
distribution of the shares within the meaning of the Securities Act of 1933, as
amended (the "Securities Act").

I understand that if, at the time of exercise, the Stock has
not been registered under the Securities Act, I must hold such Stock
indefinitely unless the Stock is subsequently registered and qualified under the
Securities Act or is exempt from such registration and qualification. I shall
make no transfer or disposition of the Stock unless (a) such transfer or
disposition can be made without registration under the Securities Act by reason
of a specific exemption from such registration and such qualification, or
(b) a registration statement has been filed pursuant to the Securities Act
and has been declared effective with respect to such disposition. I agree that
each certificate representing the Stock delivered to me shall bear substantially
the same legend as set forth on the front page of the Warrant.

I further agree that the Company may place stop orders on the
certificates evidencing the Stock with the transfer agent, if any, to the same
effect as the above legend. The legend and stop transfer notice referred to
above shall be removed only upon my furnishing to the Company of an opinion of
counsel (reasonably satisfactory to the Company) to the effect that such legend
may be removed.

	
Date: ___________________________
	
                Signed: ___________________________

                   Address: _______________________

               ________________________________

EXHIBIT A -2

SUBSCRIPTION FORM

[To be executed only upon exchange of Warrant 

for shares of Common Stock]

The undersigned registered owner of this Warrant irrevocably
exchanges this Warrant for ________________ shares of Common Stock of Digital
Video Systems, Inc., at the exchange ratio and on the terms and conditions
specified in this Warrant, and requests that certificates for the shares of
Common Stock hereby acquired (and any securities or property issuable upon such
exchange) be issued in the name of and delivered to
_____________________________ whose address is
_______________________________________________ and, if such shares of Common
Stock shall not include all of the shares of Common Stock issuable as provided
in this Warrant, that a new Warrant of like tenor and date for the balance of
the shares of Common Stock issuable hereunder be delivered to the
undersigned.

In connection with the issuance of the Stock, I hereby
represent to the Company that I am acquiring the Stock for my own account for
investment and not with a view to, or for resale in connection with, a
distribution of the shares within the meaning of the Securities Act of 1933, as
amended (the "Securities Art").

I understand that if, at the time of exercise, the Stock has
not been registered under the Securities Act, I must hold such Stock
indefinitely unless the Stock is subsequently registered and qualified under the
Securities Act or is exempt from such registration and qualification. I shall
make no transfer or disposition of the Stock unless (a) such transfer or
disposition can be made without registration under the Securities Act by reason
of a specific exemption from such registration and such qualification, or
(b) a registration statement has been filed pursuant to the Securities Act
and has been declared effective with respect to such disposition. I agree that
each certificate representing the Stock delivered to me shall bear substantially
the same legend as set forth on the front page of the Warrant.

I further agree that the Company may place stop orders on the
certificates evidencing the Stock with the transfer agent, if any, to the same
effect as the above legend. The legend and stop transfer notice referred to
above shall be removed only upon my furnishing to the Company of an opinion of
counsel (reasonably satisfactory to the Company) to the effect that such legend
may be removed.

	
Date: ___________________________
	
                Signed: ___________________________

                   Address: _______________________

               ________________________________

Exhibit B

ASSIGNMENT

(To be Executed by the Holder to Effect Transfer of the
Attached Warrant)

For Value Received _____________ hereby sells, assigns
and transfers to _____________ the Warrant attached hereto and the rights
represented thereby to purchase ____________ shares of Common Stock in
accordance with the terms and conditions hereof, and does hereby irrevocably
constitute and appoint ___________ as attorney to transfer such Warrant on the
books of the Company with full power of substitution.

	
Date: ___________________________
	
                Signed: ___________________________

	
Please print or typewrite name and 

address of assignee:

________________________________

________________________________

________________________________

	
Please insert Social Security or other Tax 
 Identification Number of
Assignee:

________________________________

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