Document:

EXHIBIT 10.2

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

Original Issue Date: November 12, 2004
Original Set Price (subject to adjustment herein): $0.286

                                                              $________________

                              CONVERTIBLE DEBENTURE
                              DUE NOVEMBER 12, 2007

         THIS DEBENTURE is one of a series of duly authorized and issued
Convertible Debentures of WaveRider Communications Inc., a Nevada corporation,
having a principal place of business at 255 Consumers Road, Suite 500, Toronto,
Ontario M2J 1R4 (the "Company"), designated as its Convertible Debenture, due
November 12, 2007 (the "Debenture(s)").

         FOR VALUE RECEIVED, the Company promises to pay to
________________________ or its registered assigns (the "Holder"), the principal
sum of $_______________ on November 12, 2007 or such earlier date as the
Debentures are required or permitted to be repaid as provided hereunder (the
"Maturity Date"). This Debenture is subject to the following additional
provisions:

         Section 1. Definitions. For the purposes hereof, in addition to the
terms defined elsewhere in this Debenture: (a) capitalized terms not otherwise
defined herein have the meanings given to such terms in the Purchase Agreement,
and (b) the following terms shall have the following meanings:

                  "Alternate Consideration" shall have the meaning set forth in
         Section 5(d).

                  "Business Day" means any day except Saturday, Sunday and any
         day which shall be a federal legal holiday in the United States or a
         day on which banking institutions in the State of New York are
         authorized or required by law or other government action to close.

                  "Change of Control Transaction" means the occurrence after the
         date hereof of any of (i) an acquisition after the date hereof by an
         individual or legal entity or "group" (as described in Rule 13d-5(b)(1)
         promulgated under the Exchange Act) of effective control (whether
         through legal or beneficial ownership of capital stock of the Company,
         by contract or otherwise) of in excess of 33% of the voting securities
         of the Company, or (ii) a replacement at one time or within a three
         year period of more than one-half of the members of the Company's board
         of directors which is not approved by a majority of those individuals
         who are members of the board of directors on the date hereof (or by
         those individuals who are serving as members of the board of directors
         on any date whose nomination to the board of directors was approved by
         a majority of the members of the board of directors who are members on
         the date hereof), or (iii) the execution by the Company of an agreement
         to which the Company is a party or by which it is bound, providing for
         any of the events set forth above in (i) or (ii).

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                  "Conditional Redemption Price" shall have the meaning set
         forth in Section 6(b).

                  "Conditional Redemption Right" shall have the meaning set
         forth in Section 6(b).

                  "Conversion Date" shall have the meaning set forth in Section
         4(a) hereof.

                  "Conversion Shares" means the shares of Common Stock issuable
         upon conversion of Debentures.

                  "Dilutive Issuance" shall have the meaning set forth in
         Section 5(b) hereof.

                  "Effectiveness Period" shall have the meaning given to such
         term in the Registration Rights Agreement.

                  "Equity Conditions" shall mean, during the period in question,
         (i) the Company shall have duly honored all conversions and redemptions
         scheduled to occur or occurring by virtue of one or more Notice of
         Conversions, if any, (ii) all liquidated damages and other amounts
         owing in respect of the Debentures shall have been paid; (iii) there is
         an effective Registration Statement pursuant to which the Holder is
         permitted to utilize the prospectus thereunder to resell all of the
         shares issuable pursuant to the Transaction Documents (and the Company
         believes, in good faith, that such effectiveness will continue
         uninterrupted for the foreseeable future), (iv) the Common Stock is
         trading on the Trading Market and all of the shares issuable pursuant
         to the Transaction Documents are listed for trading on a Trading Market
         (and the Company believes, in good faith, that trading of the Common
         Stock on a Trading Market will continue uninterrupted for the
         foreseeable future), (v) there is a sufficient number of authorized but
         unissued and otherwise unreserved shares of Common Stock for the
         issuance of all of the shares issuable pursuant to the Transaction
         Documents, (vi) there is then existing no Event of Default or event
         which, with the passage of time or the giving of notice, would
         constitute an Event of Default, (vii) all of the shares issued or
         issuable pursuant to the transaction proposed would not violate the
         limitations set forth in Section 4(c) and (viii) no public announcement
         of a pending or proposed Fundamental Transaction, Change of Control
         Transaction or acquisition transaction has occurred that has not been
         consummated.

                  "Event of Default" shall have the meaning set forth in
         Section 8.

                  "Fundamental Transaction" shall have the meaning set forth in
         Section 5(d).

                  "Mandatory Prepayment Amount" for any Debentures shall equal
         the sum of (i) the greater of: (A) 120% of the principal amount of
         Debentures to be prepaid, or (B) the principal amount of Debentures to
         be prepaid divided by the Set Price on (x) the date the Mandatory
         Prepayment Amount is demanded or otherwise due or (y) the date the
         Mandatory Prepayment Amount is paid in full, whichever is less,
         multiplied by the Closing Price on (x) the date the Mandatory
         Prepayment Amount is demanded or otherwise due or (y) the date the
         Mandatory Prepayment Amount is paid in full, whichever is greater, and
         (ii) all other amounts, costs, expenses and liquidated damages due in
         respect of such Debentures; provided, however, in connection with a
         Fundamental Transaction pursuant to Section 8(a)(viii), subsection
         (i)(A) of this definition shall be equal to 100% of the principal
         amount of the Debentures to be prepaid.

                  "Notice Date" shall have the meaning set forth in Section
         6(a).

                  "Optional Redemption Notice" shall have the meaning set forth
         in Section 6(a).

                  "Optional Redemption Price" shall have the meaning set forth
         in Section 6(a).

                  "Original Issue Date" shall mean the date of the first
         issuance of the Debentures regardless of the number of transfers of any
         Debenture and regardless of the number of instruments which may be
         issued to evidence such Debenture.

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<PAGE>

                  "Purchase Agreement" means the Securities Purchase Agreement,
         dated as of November 12, 2004, to which the Company and the original
         Holder are parties, as amended, modified or supplemented from time to
         time in accordance with its terms.

                  "Registration Statement" means a registration statement
         meeting the requirements set forth in the Registration Rights
         Agreement, covering among other things the resale of the Conversion
         Shares and naming the Holder as a "selling stockholder" thereunder.

                  "Set Price" shall have the meaning set forth in Section 4(b).

         Section 2.        Interest.

                  a) No Payment of Interest. Except as specifically set forth in
         this Debenture, the Holder acknowledges and agrees that the Company
         shall not pay interest to the Holder on this Debenture.

                  b) Prepayment. Except as otherwise set forth in this
         Debenture, the Company may not prepay any portion of the principal
         amount of this Debenture without the prior written consent of the
         Holder.

         Section 3.         Registration of Transfers and Exchanges.

                  a) Different Denominations. This Debenture is exchangeable for
         an equal aggregate principal amount of Debentures of different
         authorized denominations, as requested by the Holder surrendering the
         same. No service charge will be made for such registration of transfer
         or exchange.

                  b) Investment Representations. This Debenture has been issued
         subject to certain investment representations of the original Holder
         set forth in the Purchase Agreement and may be transferred or exchanged
         only in compliance with the Purchase Agreement and applicable federal
         and state securities laws and regulations.

                  c) Reliance on Debenture Register. Prior to due presentment to
         the Company for transfer of this Debenture, the Company and any agent
         of the Company may treat the Person in whose name this Debenture is
         duly registered on the Debenture Register as the owner hereof for the
         purpose of receiving payment as herein provided and for all other
         purposes, whether or not this Debenture is overdue, and neither the
         Company nor any such agent shall be affected by notice to the contrary.

         Section 4.        Conversion.

                  a) Voluntary Conversion. At any time after the Original Issue
         Date until this Debenture is no longer outstanding, this Debenture
         shall be convertible into shares of Common Stock at the option of the
         Holder, in whole or in part at any time and from time to time (subject
         to the limitations on conversion set forth in Section 4(c) hereof). The
         Holder shall effect conversions by delivering to the Company the form
         of Notice of Conversion attached hereto as Annex A (a "Notice of
         Conversion"), specifying therein the principal amount of Debentures to
         be converted and the date on which such conversion is to be effected (a
         "Conversion Date"). If no Conversion Date is specified in a Notice of
         Conversion, the Conversion Date shall be the date that such Notice of
         Conversion is provided hereunder. To effect conversions hereunder, the
         Holder shall not be required to physically surrender Debentures to the
         Company unless the entire principal amount of this Debenture has been
         so converted. Conversions hereunder shall have the effect of lowering
         the outstanding principal amount of this Debenture in an amount equal
         to the applicable conversion. The Holder and the Company shall maintain
         records showing the principal amount converted and the date of such
         conversions. The Company shall deliver any objection to any Notice of
         Conversion within 1 Business Day of receipt of such notice. In the
         event of any dispute or discrepancy, the records of the Holder shall be
         controlling and determinative in the absence of manifest error. The
         Holder and any assignee, by acceptance of this Debenture, acknowledge
         and agree that, by reason of the provisions of this paragraph,
         following conversion of a portion of this Debenture, the unpaid and
         unconverted principal amount of this Debenture may be less than the
         amount stated on the face hereof.

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<PAGE>

                  b) Conversion Price. The conversion price in effect on any
         Conversion Date shall be equal to $0.286 (subject to adjustment
         herein)(the "Set Price").

                  c) Conversion Limitations; Holder's Restriction on Conversion.
         The Company shall not effect any conversion of this Debenture, and the
         Holder shall not have the right to convert any portion of this
         Debenture, pursuant to Section 4(a), Section 6(b) or otherwise, to the
         extent that after giving effect to such conversion, the Holder
         (together with the Holder's affiliates), as set forth on the applicable
         Notice of Conversion, would beneficially own in excess of 4.99% of the
         number of shares of the Common Stock outstanding immediately after
         giving effect to such conversion. For purposes of the foregoing
         sentence, the number of shares of Common Stock beneficially owned by
         the Holder and its affiliates shall include the number of shares of
         Common Stock issuable upon conversion of this Debenture with respect to
         which the determination of such sentence is being made, but shall
         exclude the number of shares of Common Stock which would be issuable
         upon (A) conversion of the remaining, nonconverted portion of this
         Debenture beneficially owned by the Holder or any of its affiliates and
         (B) exercise or conversion of the unexercised or nonconverted portion
         of any other securities of the Company (including, without limitation,
         any other Debentures or the Warrants) subject to a limitation on
         conversion or exercise analogous to the limitation contained herein
         beneficially owned by the Holder or any of its affiliates. Except as
         set forth in the preceding sentence, for purposes of this Section 4(c),
         beneficial ownership shall be calculated in accordance with Section
         13(d) of the Exchange Act. To the extent that the limitation contained
         in this section applies, the determination of whether this Debenture is
         convertible (in relation to other securities owned by the Holder) and
         of which a portion of this Debenture is convertible shall be in the
         sole discretion of such Holder. To ensure compliance with this
         restriction, the Holder will be deemed to represent to the Company each
         time it delivers a Notice of Conversion that such Notice of Conversion
         has not violated the restrictions set forth in this paragraph and the
         Company shall have no obligation to verify or confirm the accuracy of
         such determination. For purposes of this Section 4(c), in determining
         the number of outstanding shares of Common Stock, the Holder may rely
         on the number of outstanding shares of Common Stock as reflected in (x)
         the Company's most recent Form 10-QSB or Form 10-KSB, as the case may
         be, (y) a more recent public announcement by the Company or (z) any
         other notice by the Company or the Company's Transfer Agent setting
         forth the number of shares of Common Stock outstanding. Upon the
         written or oral request of the Holder, the Company shall within two
         Trading Days confirm orally and in writing to the Holder the number of
         shares of Common Stock then outstanding. In any case, the number of
         outstanding shares of Common Stock shall be determined after giving
         effect to the conversion or exercise of securities of the Company,
         including this Debenture, by the Holder or its affiliates since the
         date as of which such number of outstanding shares of Common Stock was
         reported. The provisions of this Section 4(c) may be waived by the
         Holder upon, at the election of the Holder, not less than 61 days'
         prior notice to the Company, and the provisions of this Section 4(c)
         shall continue to apply until such 61st day (or such later date, as
         determined by the Holder, as may be specified in such notice of
         waiver).

                  d) Mechanics of Conversion

                           i. Conversion Shares Issuable Upon Conversion of
                  Principal Amount. The number of shares of Common Stock
                  issuable upon a conversion hereunder shall be determined by
                  the quotient obtained by dividing (x) the outstanding
                  principal amount of this Debenture to be converted by (y) the
                  Set Price.

                           ii. Delivery of Certificate Upon Conversion. Not
                  later than three Trading Days after any Conversion Date, the
                  Company will deliver to the Holder a certificate or
                  certificates representing the Conversion Shares which shall be
                  free of restrictive legends and trading restrictions (other
                  than those required by the Purchase Agreement) representing
                  the number of shares of Common Stock being acquired upon the
                  conversion of Debentures. The Company shall, if available and
                  if allowed under applicable securities laws, use its best
                  efforts to deliver any certificate or certificates required to
                  be delivered by the Company under this Section electronically
                  through the Depository Trust Corporation or another
                  established clearing corporation performing similar functions.

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<PAGE>

                           iii. Failure to Deliver Certificates. If in the case
                  of any Notice of Conversion such certificate or certificates
                  are not delivered to or as directed by the applicable Holder
                  by the fifth Trading Day after a Conversion Date, the Holder
                  shall be entitled by written notice to the Company at any time
                  on or before its receipt of such certificate or certificates
                  thereafter, to rescind such conversion, in which event the
                  Company shall immediately return the certificates representing
                  the principal amount of Debentures tendered for conversion.

                           iv. Obligation Absolute; Partial Liquidated Damages.
                  If the Company fails for any reason to deliver to the Holder
                  such certificate or certificates pursuant to Section 4(d)(ii)
                  by the third Trading Day after the Conversion Date, the
                  Company shall pay to such Holder, in cash, as liquidated
                  damages and not as a penalty, for each $5,000 of principal
                  amount being converted, $50 per Trading Day (increasing to
                  $100 per Trading Day after 3 Trading Days after such damages
                  begin to accrue) for each Trading Day after such third Trading
                  Day until such certificates are delivered. Nothing herein
                  shall limit a Holder's right to pursue actual damages or
                  declare an Event of Default pursuant to Section 8 herein for
                  the Company's failure to deliver Conversion Shares within the
                  period specified herein and such Holder shall have the right
                  to pursue all remedies available to it at law or in equity
                  including, without limitation, a decree of specific
                  performance and/or injunctive relief. The exercise of any such
                  rights shall not prohibit the Holders from seeking to enforce
                  damages pursuant to any other Section hereof or under
                  applicable law.

                           v. Compensation for Buy-In on Failure to Timely
                  Deliver Certificates Upon Conversion. In addition to any other
                  rights available to the Holder, if the Company fails for any
                  reason to deliver to the Holder such certificate or
                  certificates pursuant to Section 4(d)(ii) by the third Trading
                  Day after the Conversion Date, and if after such third Trading
                  Day the Holder is required by its brokerage firm to purchase
                  (in an open market transaction or otherwise) Common Stock to
                  deliver in satisfaction of a sale by such Holder of the
                  Conversion Shares which the Holder anticipated receiving upon
                  such conversion (a "Buy-In"), then the Company shall (A) pay
                  in cash to the Holder (in addition to any ------ remedies
                  available to or elected by the Holder) the amount by which (x)
                  the Holder's total purchase price (including brokerage
                  commissions, if any) for the Common Stock so purchased exceeds
                  (y) the product of (1) the aggregate number of shares of
                  Common Stock that such Holder anticipated receiving from the
                  conversion at issue multiplied by (2) the actual sale price of
                  the Common Stock at the time of the sale (including brokerage
                  commissions, if any) giving rise to such purchase obligation
                  and (B) at the option of the Holder, either reissue Debentures
                  in principal amount equal to the principal amount of the
                  attempted conversion or deliver to the Holder the number of
                  shares of Common Stock that would have been issued had the
                  Company timely complied with its delivery requirements under
                  Section 4(d)(ii). For example, if the Holder purchases Common
                  Stock having a total purchase price of $11,000 to cover a
                  Buy-In with respect to an attempted conversion of Debentures
                  with respect to which the actual sale price of the Conversion
                  Shares at the time of the sale (including brokerage
                  commissions, if any) giving rise to such purchase obligation
                  was a total of $10,000 under clause (A) of the immediately
                  preceding sentence, the Company shall be required to pay the
                  Holder $1,000. The Holder shall provide the Company written
                  notice indicating the amounts payable to the Holder in respect
                  of the Buy-In. Notwithstanding anything contained herein to
                  the contrary, if a Holder requires the Company to make payment
                  in respect of a Buy-In for the failure to timely deliver
                  certificates hereunder and the Company timely pays in full
                  such payment, the Company shall not be required to pay such
                  Holder liquidated damages under Section 4(d)(iv) in respect of
                  the certificates resulting in such Buy-In.

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                           vi. Reservation of Shares Issuable Upon Conversion.
                  The Company covenants that it will at all times reserve and
                  keep available out of its authorized and unissued shares of
                  Common Stock solely for the purpose of issuance upon
                  conversion of the Debentures, free from preemptive rights or
                  any other actual contingent purchase rights of persons other
                  than the Holders, not less than such number of shares of the
                  Common Stock as shall (subject to any additional requirements
                  of the Company as to reservation of such shares set forth in
                  the Purchase Agreement) be issuable (taking into account the
                  adjustments and restrictions of Section 5) upon the conversion
                  of the outstanding principal amount of the Debentures. The
                  Company covenants that all shares of Common Stock that shall
                  be so issuable shall, upon issue, be duly and validly
                  authorized, issued and fully paid, nonassessable and, if the
                  Registration Statement is then effective under the Securities
                  Act, registered for public sale in accordance with such
                  Registration Statement.

                           vii. Fractional Shares. Upon a conversion hereunder
                  the Company shall not be required to issue stock certificates
                  representing fractions of shares of the Common Stock, but may
                  if otherwise permitted, make a cash payment in respect of any
                  final fraction of a share based on the Closing Price at such
                  time. If the Company elects not, or is unable, to make such a
                  cash payment, the Holder shall be entitled to receive, in lieu
                  of the final fraction of a share, one whole share of Common
                  Stock.

                           viii. Transfer Taxes. The issuance of certificates
                  for shares of the Common Stock on conversion of the Debentures
                  shall be made without charge to the Holders thereof for any
                  documentary stamp or similar taxes that may be payable in
                  respect of the issue or delivery of such certificate, provided
                  that the Company shall not be required to pay any tax that may
                  be payable in respect of any transfer involved in the issuance
                  and delivery of any such certificate upon conversion in a name
                  other than that of the Holder of such Debentures so converted
                  and the Company shall not be required to issue or deliver such
                  certificates unless or until the person or persons requesting
                  the issuance thereof shall have paid to the Company the amount
                  of such tax or shall have established to the satisfaction of
                  the Company that such tax has been paid.

         Section 5.        Certain Adjustments.

                  a) Stock Dividends and Stock Splits. If the Company, at any
         time while the Debentures are outstanding: (A) shall pay a stock
         dividend or otherwise make a distribution or distributions on shares of
         its Common Stock or any other equity or equity equivalent securities
         payable in shares of Common Stock (which, for avoidance of doubt, shall
         not include any shares of Common Stock issued by the Company pursuant
         to this Debenture), (B) subdivide outstanding shares of Common Stock
         into a larger number of shares, (C) combine (including by way of
         reverse stock split) outstanding shares of Common Stock into a smaller
         number of shares, or (D) issue by reclassification of shares of the
         Common Stock any shares of capital stock of the Company, then the Set
         Price shall be multiplied by a fraction of which the numerator shall be
         the number of shares of Common Stock (excluding treasury shares, if
         any) outstanding before such event and of which the denominator shall
         be the number of shares of Common Stock outstanding after such event.
         Any adjustment made pursuant to this Section shall become effective
         immediately after the record date for the determination of stockholders
         entitled to receive such dividend or distribution and shall become
         effective immediately after the effective date in the case of a
         subdivision, combination or re-classification.

                  b) Subsequent Equity Sales. If the Company or any Subsidiary
         thereof, as applicable, at any time while Debentures are outstanding,
         shall offer, sell, grant any option to purchase or offer, sell or grant
         any right to reprice its securities, or otherwise dispose of or issue
         (or announce any offer, sale, grant or any option to purchase or other
         disposition) any Common Stock or Common Stock Equivalents entitling any
         Person to acquire shares of Common Stock, at an effective price per
         share less than the then Set Price (such lower price, the "Base Set
         Price" and such issuances collectively, a "Dilutive Issuance"), as
         adjusted hereunder (if the holder of the Common Stock or Common Stock
         Equivalents so issued shall at any time, whether by operation of
         purchase price adjustments, reset provisions, floating conversion,
         exercise or exchange prices or otherwise, or due to warrants, options
         or rights per share which is issued in connection with such issuance,
         be entitled to receive shares of Common Stock at an effective price per
         share which is less than the Set Price, such issuance shall be deemed
         to have occurred for less than the Set Price), then the Set Price shall
         be reduced to equal the Base Set Price. Such adjustment shall be made
         whenever such Common Stock or Common Stock Equivalents are issued. The
         Company shall notify the Holder in writing, no later than the Business
         Day following the issuance of any Common Stock or Common Stock
         Equivalents subject to this section, indicating therein the applicable
         issuance price, or of applicable reset price, exchange price,
         conversion price and other pricing terms.

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                  c) Pro Rata Distributions. If the Company, at any time while
         Debentures are outstanding, shall distribute to all holders of Common
         Stock (and not to Holders) evidences of its indebtedness or assets or
         rights or warrants to subscribe for or purchase any security, then in
         each such case the Set Price shall be determined by multiplying such
         Set Price in effect immediately prior to the record date fixed for
         determination of stockholders entitled to receive such distribution by
         a fraction of which the denominator shall be the Closing Price
         determined as of the record date mentioned above, and of which the
         numerator shall be such Closing Price on such record date less the then
         fair market value at such record date of the portion of such assets or
         evidence of indebtedness so distributed applicable to one outstanding
         share of the Common Stock as determined by the Board of Directors in
         good faith. In either case the adjustments shall be described in a
         statement provided to the Holders of the portion of assets or evidences
         of indebtedness so distributed or such subscription rights applicable
         to one share of Common Stock. Such adjustment shall be made whenever
         any such distribution is made and shall become effective immediately
         after the record date mentioned above.

                  d) Fundamental Transaction. If, at any time while this
         Debenture is outstanding, (A) the Company effects any merger or
         consolidation of the Company with or into another Person, (B) the
         Company effects any sale of all or substantially all of its assets in
         one or a series of related transactions, (C) any tender offer or
         exchange offer (whether by the Company or another Person) is completed
         pursuant to which holders of Common Stock are permitted to tender or
         exchange their shares for other securities, cash or property, or (D)
         the Company effects any reclassification of the Common Stock or any
         compulsory share exchange pursuant to which the Common Stock is
         effectively converted into or exchanged for other securities, cash or
         property (in any such case, a "Fundamental Transaction"), then upon any
         subsequent conversion of this Debenture, the Holder shall have the
         right to receive, for each Conversion Share that would have been
         issuable upon such conversion absent such Fundamental Transaction, the
         same kind and amount of securities, cash or property as it would have
         been entitled to receive upon the occurrence of such Fundamental
         Transaction if it had been, immediately prior to such Fundamental
         Transaction, the holder of one share of Common Stock (the "Alternate
         Consideration"). For purposes of any such conversion, the determination
         of the Set Price shall be appropriately adjusted to apply to such
         Alternate Consideration based on the amount of Alternate Consideration
         issuable in respect of one share of Common Stock in such Fundamental
         Transaction, and the Company shall apportion the Set Price among the
         Alternate Consideration in a reasonable manner reflecting the relative
         value of any different components of the Alternate Consideration. If
         holders of Common Stock are given any choice as to the securities, cash
         or property to be received in a Fundamental Transaction, then the
         Holder shall be given the same choice as to the Alternate Consideration
         it receives upon any conversion of this Debenture following such
         Fundamental Transaction. To the extent necessary to effectuate the
         foregoing provisions, any successor to the Company or surviving entity
         in such Fundamental Transaction shall issue to the Holder a new
         debenture consistent with the foregoing provisions and evidencing the
         Holder's right to convert such debenture into Alternate Consideration.
         The terms of any agreement pursuant to which a Fundamental Transaction
         is effected shall include terms requiring any such successor or
         surviving entity to comply with the provisions of this paragraph (c)
         and insuring that this Debenture (or any such replacement security)
         will be similarly adjusted upon any subsequent transaction analogous to
         a Fundamental Transaction.

                  e) Calculations. All calculations under this Section 5 shall
         be made to the nearest cent or the nearest 1/100th of a share, as the
         case may be. For purposes of this Section 5, the number of shares of
         Common Stock deemed to be issued and outstanding as of a given date
         shall be the sum of the number of shares of Common Stock (excluding
         treasury shares, if any) issued and outstanding.

                  f) Exempt Issuance. Notwithstanding the foregoing, no
         adjustment will be made under this Section 5 in respect of an Exempt
         Issuance.

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<PAGE>

                  g) Re-Adjustment of Set Price. If the Set Price has been
         adjusted based on the issuance of a right, option, warrant and/or
         Common Stock Equivalent and all of such right, option, warrant and/or
         Common Stock Equivalent expires pursuant to its own terms before it is
         exercised, exchanged and/or converted, an upward adjustment will be
         made such that the Set Price will no longer reflect the issuance of
         such right, option, warrant and/or Common Stock Equivalent.

                  h) Notice to Holders.

                           i. Adjustment to Set Price. Whenever the Set Price is
                  adjusted pursuant to any of this Section 5, the Company shall
                  promptly mail to each Holder a notice setting forth the Set
                  Price after such adjustment and setting forth a brief
                  statement of the facts requiring such adjustment. If the
                  Company issues a variable rate security, the Company shall be
                  deemed to have issued Common Stock or Common Stock Equivalents
                  at the lowest possible conversion or exercise price at which
                  such securities may be converted or exercised in the case of a
                  Variable Rate Transaction (as defined in the Purchase
                  Agreement), or the lowest possible adjustment price in the
                  case of an MFN Transaction (as defined in the Purchase
                  Agreement). The term "Variable Rate Transaction" shall mean a
                  transaction in which the Company issues or sells (i) any debt
                  or equity securities that are convertible into, exchangeable
                  or exercisable for, or include the right to receive additional
                  shares of Common Stock either (A) at a conversion, exercise or
                  exchange rate or other price that is based upon and/or varies
                  with the trading prices of or quotations for the shares of
                  Common Stock at any time after the initial issuance of such
                  debt or equity securities, or (B) with a conversion, exercise
                  or exchange price that is subject to being reset at some
                  future date after the initial issuance of such debt or equity
                  security or upon the occurrence of specified or contingent
                  events directly or indirectly related to the business of the
                  Company or the market for the Common Stock. The term "MFN
                  Transaction" shall mean a transaction in which the Company
                  issues or sells any securities in a capital raising
                  transaction or series of related transactions which grants to
                  an investor the right to receive additional shares based upon
                  future transactions of the Company on terms more favorable
                  than those granted to such investor in such offering.

                           ii. Notice to Allow Conversion by Holder. If (A) the
                  Company shall declare a dividend (or any other distribution)
                  on the Common Stock; (B) the Company shall declare a special
                  nonrecurring cash dividend on or a redemption of the Common
                  Stock; (C) the Company shall authorize the granting to all
                  holders of the Common Stock rights or warrants to subscribe
                  for or purchase any shares of capital stock of any class or of
                  any rights; (D) the approval of any stockholders of the
                  Company shall be required in connection with any
                  reclassification of the Common Stock, any consolidation or
                  merger to which the Company is a party, any sale or transfer
                  of all or substantially all of the assets of the Company, of
                  any compulsory share exchange whereby the Common Stock is
                  converted into other securities, cash or property; (E) the
                  Company shall authorize the voluntary or involuntary
                  dissolution, liquidation or winding up of the affairs of the
                  Company; then, in each case, the Company shall cause to be
                  filed at each office or agency maintained for the purpose of
                  conversion of the Debentures, and shall cause to be mailed to
                  the Holders at their last addresses as they shall appear upon
                  the stock books of the Company, at least 20 calendar days
                  prior to the applicable record or effective date hereinafter
                  specified, a notice stating (x) the date on which a record is
                  to be taken for the purpose of such dividend, distribution,
                  redemption, rights or warrants, or if a record is not to be
                  taken, the date as of which the holders of the Common Stock of
                  record to be entitled to such dividend, distributions,
                  redemption, rights or warrants are to be determined or (y) the
                  date on which such reclassification, consolidation, merger,
                  sale, transfer or share exchange is expected to become
                  effective or close, and the date as of which it is expected
                  that holders of the Common Stock of record shall be entitled
                  to exchange their shares of the Common Stock for securities,
                  cash or other property deliverable upon such reclassification,
                  consolidation, merger, sale, transfer or share exchange;
                  provided, that the failure to mail such notice or any
                  defect therein or in the mailing thereof shall not affect the
                  validity of the corporate action required to be specified in
                  such notice. Holders are entitled to convert Debentures during
                  the 20-day period commencing the date of such notice to the
                  effective date of the event triggering such notice.

                                       8
<PAGE>

         Section 6.        Redemption.

                  a) Optional Redemption by the Company. The Company shall have
         the right, at any time after the Effective Date if the Closing Price on
         each of the 20 Trading Days (which Trading Days shall only commence
         after the Effective Date) immediately prior to the Notice Date (as
         defined below) is greater than 200% of the then Set Price, upon 10
         Trading Days' prior written notice to the Holder (an "Optional
         Redemption Notice" (the date such notice is received by the Holder is
         the "Notice Date"), to redeem no less than the entire principal amount
         of this Debenture then held by the Holder, at a cash price equal to the
         120% of the principal amount outstanding plus any fees owing thereon
         (the "Optional Redemption Price"). The Company may only effect an
         Optional Redemption Notice if each of the Equity Conditions shall be
         true, unless such Equity Condition, applicable to such Optional
         Redemption, is waived by the Holder, in writing. If any of the Equity
         Conditions shall cease to be in effect during the period between the
         Notice Date and the date the Optional Redemption Price is paid in full,
         then the Holders subject to such redemption may elect, by written
         notice to the Company given at any time after any of the foregoing
         conditions shall cease to be in effect, to invalidate ab initio
         --------- such redemption, notwithstanding anything herein contained to
         the contrary. In any case, the Holders may convert any portion of the
         outstanding principal amount of the Debentures subject to an Optional
         Redemption Notice prior to the date that the Optional Redemption Price
         is due and paid in full.

                  b) Conditional Redemption at Election of Holder. On any
         Conversion Date after the earlier of the Effective Date or the 150th
         day after the Closing Date ("Conditional Redemption Commencement
         Date"), if the Closing Price for each of the 20 consecutive Trading
         Days during the period prior to such date is less than 120% of the Set
         Price then in effect, the Holder shall have the right ("Conditional
         Redemption Right") to cause the Company to either (i) redeem the
         portion of this Debenture then subject to the Notice of Conversion
         applicable to such Conversion Date based on a redemption price equal to
         120% of the principal amount of such portion of the Debenture (the
         "Conditional Redemption Price") or (ii) issue Conversion Shares based
         on a conversion price equal to 90% of the average of the lowest 3
         Closing Prices during such 20 day period. The determination of whether
         to honor a Conditional Redemption Right in cash or shares shall be at
         the election of the Company subject to at least 10 prior Trading Days'
         notice to the Holder. The notice requirement for the Company's election
         to honor a Conditional Redemption Right in cash or shares shall operate
         as follows: Prior to the 10th Trading Day prior to the Conditional
         Redemption Commencement Date, the Company shall notify the Holder of
         its election to issue shares or cash upon the Holder's future exercise
         of its Conditional Redemption Right. Failure to so notify the Holder
         prior to such date shall be deemed an election to pay shares until
         further notified hereunder. The Company may notify the Holder that it
         changes its election any time thereafter provided any such change in
         election shall not be effective until the 11th Trading Day following
         such duly delivered notice. All conversions hereunder shall be made as
         if pursuant to Section 4 and the other sub-sections relating thereto,
         including but not limited to, liquidated damages and fees for late
         delivery of Conversion Shares. Nothing herein shall preclude the Holder
         from converting this Debenture to the extent this Debenture remains
         unpaid and unconverted after the redemption date as set forth in
         sub-section (c) below.

                  c) Redemption Procedure. The Optional Redemption Price is due
         on the 20th Trading Day following the Notice Date and the Conditional
         Redemption Price is due on the 5th Trading Day following the applicable
         Conversion Date unless otherwise paid in shares of Common Stock, in
         which case the delivery of such shares shall be otherwise subject to
         Section 4. If any portion of the Optional Redemption Price or
         Conditional Redemption Price shall not be paid by the Company by the
         date such payment is due, interest shall accrue thereon at the rate of
         18% per annum (or the maximum rate permitted by applicable law,
         whichever is less) until such redemption price plus all such interest
         is paid in full. In addition, if any portion of the Optional Redemption
         Price or Conditional Redemption Price remains unpaid after such date,
         the Holders subject to such redemption may elect, by written notice to
         the Company given at any time thereafter, to invalidate ab initio such
         redemption, notwithstanding anything herein contained to the contrary.
         If a Holder elects to invalidate such redemption the Company shall
         promptly, and, in any event, not later than 3 Trading Days from receipt
         of such Holder's notice of such election, return to such Holder all of
         the Debentures for which the Optional Redemption Price or Conditional
         Redemption Price shall not have been paid in full.

                                       9
<PAGE>

         Section 7. Negative Covenants. So long as any portion of this Debenture
is outstanding, the Company will not and will not permit any of its Subsidiaries
to, directly or indirectly:

                  (i) enter into, create, incur, assume or suffer to exist any
         indebtedness or liens of any kind, on or with respect to any of its
         property or assets now owned or hereafter acquired or any interest
         therein or any income or profits therefrom that is senior to, or pari
         passu with, in any respect, the Company's obligations under the
         Debentures;

                  (ii) amend its certificate of incorporation, bylaws or other
         charter documents so as to adversely affect any rights of the Holder;

                  (iii) repay, repurchase or offer to repay, repurchase or
         otherwise acquire more than a de minimis number of shares of its Common
         Stock or other equity securities other than as to the Conversion Shares
         to the extent permitted or required under the Transaction Documents or
         as otherwise permitted by the Transaction Documents; or

                  (iv) enter into any agreement with respect to any of the
         foregoing.

         Section 8.        Events of Default.

                  a) "Event of Default", wherever used herein, means any one of
         the following events (whatever the reason and whether it shall be
         voluntary or involuntary or effected by operation of law or pursuant to
         any judgment, decree or order of any court, or any order, rule or
         regulation of any administrative or governmental body):

                           i. any default in the payment of the principal amount
                  or liquidated damages in respect of, any Debenture, in each
                  case free of any claim of subordination, as and when the same
                  shall become due and payable (whether on a Conversion Date or
                  the Maturity Date or by acceleration or otherwise) which
                  default, is not cured, if possible to cure, within 3 days of
                  notice of such default sent by the Holder;

                           ii. the Company shall materially fail to observe or
                  perform any other covenant, agreement or warranty contained in
                  this Debenture or any of the other Transaction Documents
                  (other than a breach by the Company of its obligations to
                  deliver shares of Common Stock to the Holder upon conversion
                  which breach is addressed in clause (xii) below) which failure
                  is not cured, if possible to cure, within the earlier to occur
                  of (A) 5 Trading Days after notice of such default sent by the
                  Holder or by any other Holder and (B)10 Trading Days after the
                  Company shall become or should have become aware of such
                  failure;

                           iii. a material default or material event of default
                  (subject to any grace or cure period provided for in the
                  applicable agreement, document or instrument) shall occur
                  under (A) any of the Transaction Documents other than the
                  Debentures, or (B) any other material agreement, lease,
                  document or instrument to which the Company or any Subsidiary
                  is bound;

                           iv. any representation or warranty made herein, in
                  any other Transaction Document, shall be untrue or incorrect
                  in any material respect as of the date when made or deemed
                  made;

                                       10
<PAGE>

                           v. (i) the Company or any of its Subsidiaries shall
                  commence, or there shall be commenced against the Company or
                  any such Subsidiary, a case under any applicable bankruptcy or
                  insolvency laws as now or hereafter in effect or any successor
                  thereto, or the Company or any Subsidiary commences any other
                  proceeding under any reorganization, arrangement, adjustment
                  of debt, relief of debtors, dissolution, insolvency or
                  liquidation or similar law of any jurisdiction whether now or
                  hereafter in effect relating to the Company or any Subsidiary
                  thereof or (ii) there is commenced against the Company or any
                  Subsidiary thereof any such bankruptcy, insolvency or other
                  proceeding which remains undismissed for a period of 60 days;
                  or (iii) the Company or any Subsidiary thereof is adjudicated
                  by a court of competent jurisdiction insolvent or bankrupt; or
                  any order of relief or other order approving any such case or
                  proceeding is entered; or (iv) the Company or any Subsidiary
                  thereof suffers any appointment of any custodian or the like
                  for it or any substantial part of its property which continues
                  undischarged or unstayed for a period of 60 days; or (v) the
                  Company or any Subsidiary thereof makes a general assignment
                  for the benefit of creditors; or (vi) the Company shall fail
                  to pay, or shall state that it is unable to pay, or shall be
                  unable to pay, its debts generally as they become due; or
                  (vii) the Company or any Subsidiary thereof shall call a
                  meeting of its creditors with a view to arranging a
                  composition, adjustment or restructuring of its debts; or
                  (viii) the Company or any Subsidiary thereof shall by any act
                  or failure to act expressly indicate its consent to, approval
                  of or acquiescence in any of the foregoing; or (ix) any
                  corporate or other action is taken by the Company or any
                  Subsidiary thereof for the purpose of effecting any of the
                  foregoing;

                           vi. the Company or any Subsidiary shall default in
                  any of its obligations under any mortgage, credit agreement or
                  other facility, indenture agreement, factoring agreement or
                  other instrument under which there may be issued, or by which
                  there may be secured or evidenced any indebtedness for
                  borrowed money or money due under any long term leasing or
                  factoring arrangement of the Company in an amount exceeding
                  $150,000, whether such indebtedness now exists or shall
                  hereafter be created and such default shall result in such
                  indebtedness becoming or being declared due and payable prior
                  to the date on which it would otherwise become due and
                  payable;

                           vii. the Common Stock shall not be eligible for
                  quotation on or quoted for trading on a Trading Market and
                  shall not again be eligible for and quoted or listed for
                  trading thereon within five Trading Days;

                           viii. the Company shall be a party to any Change of
                  Control Transaction or Fundamental Transaction, shall agree to
                  sell or dispose of all or in excess of 40% of its assets in
                  one or more transactions (whether or not such sale would
                  constitute a Change of Control Transaction) or shall redeem or
                  repurchase more than a de minimis number of its outstanding
                  shares of Common Stock or other equity securities of the
                  Company (other than redemptions of Conversion Shares and
                  repurchases of shares of Common Stock or other equity
                  securities of departing officers and directors of the Company;
                  provided such repurchases shall not exceed $100,000 for any
                  officer or director during the term of this Debenture);

                           ix. a Registration Statement shall not have been
                  declared effective by the Commission on or prior to the 180th
                  calendar day after the Original Issue Date (210th calendar day
                  in the event of a "full review" by the Commission);

                           x. if, during the Effectiveness Period (as defined in
                  the Registration Rights Agreement), the effectiveness of the
                  Registration Statement lapses for any reason or the Holder
                  shall not be permitted to resell Registrable Securities (as
                  defined in the Registration Rights Agreement) under the
                  Registration Statement, in either case, for more than 15
                  consecutive Trading Days or 25 non-consecutive Trading Days
                  during any 12 month period; provided, however, that in the
                  event that the Company is negotiating a merger, consolidation,
                  acquisition or sale of all or substantially all of its assets
                  or a similar transaction and in the written opinion of counsel
                  to the Company, the Registration Statement, would be required
                  to be amended to include information concerning such
                  transactions or the parties thereto that is not available or
                  may not be publicly disclosed at the time, the Company shall
                  be permitted an additional 15 consecutive Trading during any
                  12 month period relating to such an event;

                           xi. an Event (as defined in the Registration Rights
                  Agreement) shall not have been cured to the satisfaction of
                  the Holder prior to the expiration of thirty days from the
                  Event Date (as defined in the Registration Rights Agreement)
                  relating thereto (other than an Event resulting from a failure
                  of an Registration Statement to be declared effective by the
                  Commission on or prior to the Effectiveness Date (as defined
                  in the Registration Rights Agreement), which shall be covered
                  by Section 8(a)(ix);

                                       11
<PAGE>

                           xii. the Company shall fail for any reason to deliver
                  certificates to a Holder prior to the fifth Trading Day after
                  a Conversion Date pursuant to and in accordance with Section
                  4(d) or the Company shall provide notice to the Holder,
                  including by way of public announcement, at any time, of its
                  intention not to comply with requests for conversions of any
                  Debentures in accordance with the terms hereof; or

                           xiii. the Company shall fail for any reason to pay in
                  full the amount of cash due pursuant to a Buy-In within 5
                  Trading Days after notice therefor is delivered hereunder or
                  shall fail to pay all amounts owed on account of an Event of
                  Default within five days of the date due.

                  b) Remedies Upon Event of Default. If any Event of Default
         occurs and is continuing, the full principal amount of this Debenture,
         together with any other amounts owing in respect thereof, to the date
         of acceleration shall become, at the Holder's election, immediately due
         and payable in cash. The aggregate amount payable upon an Event of
         Default shall be equal to the Mandatory Prepayment Amount. Commencing 5
         days after the occurrence of any Event of Default that results in the
         eventual acceleration of this Debenture, the interest rate on this
         Debenture shall accrue at the rate of 12% per annum, or such lower
         maximum amount of interest permitted to be charged under applicable
         law. All Debentures for which the full Mandatory Prepayment Amount
         hereunder shall have been paid in accordance herewith shall promptly be
         surrendered to or as directed by the Company. The Holder need not
         provide and the Company hereby waives any presentment, demand, protest
         or other notice of any kind, and the Holder may immediately and without
         expiration of any grace period enforce any and all of its rights and
         remedies hereunder and all other remedies available to it under
         applicable law. Such declaration may be rescinded and annulled by
         Holder at any time prior to payment hereunder and the Holder shall have
         all rights as a Debenture holder until such time, if any, as the full
         payment under this Section shall have been received by it. No such
         rescission or annulment shall affect any subsequent Event of Default or
         impair any right consequent thereon.

         Section 9.        Miscellaneous.

                  a) Notices. Any and all notices or other communications or
         deliveries to be provided by the Holders hereunder, including, without
         limitation, any Notice of Conversion, shall be in writing and delivered
         personally, by facsimile, sent by a nationally recognized overnight
         courier service, addressed to the Company, at the address set forth
         above, facsimile number (416) 502-2968, Attn: T. Scott Worthington or
         such other address or facsimile number as the Company may specify for
         such purposes by notice to the Holders delivered in accordance with
         this Section. Any and all notices or other communications or deliveries
         to be provided by the Company hereunder shall be in writing and
         delivered personally, by facsimile, sent by a nationally recognized
         overnight courier service addressed to each Holder at the facsimile
         telephone number or address of such Holder appearing on the books of
         the Company, or if no such facsimile telephone number or address
         appears, at the principal place of business of the Holder. Any notice
         or other communication or deliveries hereunder shall be deemed given
         and effective on the earliest of (i) the date of transmission, if such
         notice or communication is delivered via facsimile at the facsimile
         telephone number specified in this Section prior to 5:30 p.m. (New York
         City time), (ii) the date after the date of transmission, if such
         notice or communication is delivered via facsimile at the facsimile
         telephone number specified in this Section later than 5:30 p.m. (New
         York City time) on any date and earlier than 11:59 p.m. (New York City
         time) on such date, (iii) the second Business Day following the date of
         mailing, if sent by nationally recognized overnight courier service, or
         (iv) upon actual receipt by the party to whom such notice is required
         to be given.

                  b) Absolute Obligation. Except as expressly provided herein,
         no provision of this Debenture shall alter or impair the obligation of
         the Company, which is absolute and unconditional, to pay the principal
         of and liquidated damages (if any) on, this Debenture at the time,
         place, and rate, and in the coin or currency, herein prescribed. This
         Debenture is a direct debt obligation of the Company and was issued at
         an original issue discount to the principal amount. This Debenture
         ranks pari passu with all other Debentures now or hereafter issued
         under the terms set forth herein.

                                       12
<PAGE>

                  c) Lost or Mutilated Debenture. If this Debenture shall be
         mutilated, lost, stolen or destroyed, the Company shall execute and
         deliver, in exchange and substitution for and upon cancellation of a
         mutilated Debenture, or in lieu of or in substitution for a lost,
         stolen or destroyed Debenture, a new debenture for the principal amount
         of this Debenture so mutilated, lost, stolen or destroyed but only upon
         receipt of evidence of such loss, theft or destruction of such
         Debenture, and of the ownership hereof, and indemnity, if requested,
         all reasonably satisfactory to the Company.

                  d) Governing Law. All questions concerning the construction,
         validity, enforcement and interpretation of this Debenture shall be
         determined in accordance with the provisions of the Purchase Agreement.

                  e) Waiver. Any waiver by the Company or the Holder of a breach
         of any provision of this Debenture shall not operate as or be construed
         to be a waiver of any other breach of such provision or of any breach
         of any other provision of this Debenture. The failure of the Company or
         the Holder to insist upon strict adherence to any term of this
         Debenture on one or more occasions shall not be considered a waiver or
         deprive that party of the right thereafter to insist upon strict
         adherence to that term or any other term of this Debenture. Any waiver
         must be in writing.

                  f) Severability. If any provision of this Debenture is
         invalid, illegal or unenforceable, the balance of this Debenture shall
         remain in effect, and if any provision is inapplicable to any person or
         circumstance, it shall nevertheless remain applicable to all other
         persons and circumstances. If it shall be found that any interest or
         other amount deemed interest due hereunder violates applicable laws
         governing usury, the applicable rate of interest due hereunder shall
         automatically be lowered to equal the maximum permitted rate of
         interest. The Company covenants (to the extent that it may lawfully do
         so) that it shall not at any time insist upon, plead, or in any manner
         whatsoever claim or take the benefit or advantage of, any stay,
         extension or usury law or other law which would prohibit or forgive the
         Company from paying all or any portion of the principal of or interest
         on this Debenture as contemplated herein, wherever enacted, now or at
         any time hereafter in force, or which may affect the covenants or the
         performance of this indenture, and the Company (to the extent it may
         lawfully do so) hereby expressly waives all benefits or advantage of
         any such law, and covenants that it will not, by resort to any such
         law, hinder, delay or impeded the execution of any power herein granted
         to the Holder, but will suffer and permit the execution of every such
         as though no such law has been enacted.

                  g) Next Business Day. Whenever any payment or other obligation
         hereunder shall be due on a day other than a Business Day, such payment
         shall be made on the next succeeding Business Day.

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

                              *********************

                                       13
<PAGE>

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

                      WAVERIDER COMMUNICATIONS INC.

                      By:__________________________________________
                         Name: T. Scott Worthington
                         Title:  Vice President and Chief Financial Officer

                                       14
<PAGE>

                                     ANNEX A

                              NOTICE OF CONVERSION

           The undersigned hereby elects to convert $__________ principal under
the Convertible Debenture of WaveRider Communications Inc., a Nevada corporation
(the "Company"), due on November 12, 2007, into shares of common stock, par
value $0.001 per share (the "Common Stock"), of the Company according to the
conditions hereof, as of the date written below. If shares are to be issued in
the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto and is delivering herewith such
certificates and opinions as reasonably requested by the Company in accordance
therewith. No fee will be charged to the holder for any conversion, except for
such transfer taxes, if any.

           By the delivery of this Notice of Conversion the undersigned
represents and warrants to the Company that its ownership of the Common Stock
does not exceed the amounts determined in accordance with Section 13(d) of the
Exchange Act, specified under Section 4 of this Debenture.

           The undersigned agrees to comply with the prospectus delivery
requirements under the applicable securities laws in connection with any
transfer of the aforesaid shares of Common Stock.

Holder
Holder is exercising Conditional Redemption Right ________(yes/no)

Conditional Redemption Price (in accordance with current Company
  Election): $ ________
And/or Conversion Shares to be issued:  ________ at a conversion
  price of: $ ________

Conversion Date: ________

The Shares are to be issued in the name of _______________________., and stock
certificates representing such Shares are to be delivered to:

in accordance with the Transfer Agent Instructions, dated April ____, 2004,
delivered by the Company to Corporate Stock Transfer Inc.

Holder Signature:     __________________________________________________________

Company
The Company confirms acceptance of this Notice of Conversion
(To be faxed to _______________________________________________within 1 Trading
Day of receipt by the Company).

Company Signature:  ___________________________________     Date:  _____________
                     Name:
                     Title:
                     Tel:

                                       15
<PAGE>

                                   Schedule 1

                               CONVERSION SCHEDULE

The Convertible Debentures due on November 12, 2007, in the aggregate principal
amount of $____________ issued by WaveRider Communications Inc., a Nevada
corporation. This Conversion Schedule reflects conversions made under Section 4
of the above referenced Debenture.

           Dated:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                           Aggregate Principal
                                                             Amount Remaining
      Date of Conversion                                      Subsequent to
(or for first entry, Original                                   Conversion
         Issue Date)              Amount of Conversion         (or original              Company Attest
                                                            Principal Amount)
----------------------------------------------------------------------------------------------------------------
<S>     <C>

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
</TABLE>

                                       16EXHIBIT 10.3

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

                             STOCK PURCHASE WARRANT

                                Series T Warrant

                To Purchase __________ Shares of Common Stock of
                          WaveRider Communications Inc.
         THIS STOCK PURCHASE WARRANT (the "Warrant") certifies that, for value
received, _____________ (the "Holder"), is entitled, upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any
time on or after the date of the Purchase Agreement (the "Initial Exercise
Date") and on or prior to the close of business on the November 12, 2009 (the
"Termination Date") but not thereafter, to subscribe for and purchase from
WaveRider Communications Inc., a Nevada corporation (the "Company"), up to
______ shares (the "Warrant Shares") of Common Stock, par value $0.001 per
share, of the Company (the "Common Stock"). The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise Price, as defined
in Section 2(b).

         Section 1. Definitions. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities
Purchase Agreement (the "Purchase Agreement"), dated November 12, 2004, among
the Company and the purchasers signatory thereto.

         Section 2.        Exercise.

                  a) Exercise of Warrant. Exercise of the purchase rights
         represented by this Warrant may be made at any time or times on or
         after the Initial Exercise Date and on or before the Termination Date
         by delivery to the Company of a duly executed facsimile copy of the
         Notice of Exercise Form annexed hereto (or such other office or agency
         of the Company as it may designate by notice in writing to the
         registered Holder at the address of such Holder appearing on the books
         of the Company); provided, however, within 5 Trading Days of the date
         said Notice of Exercise is delivered to the Company, the Holder shall
         have surrendered this Warrant to the Company and the Company shall have
         received payment of the aggregate Exercise Price of the shares thereby
         purchased by wire transfer or cashier's check drawn on a United States
         bank.

                  b) Exercise Price. The exercise price of the Common Stock
         under this Warrant shall be $0.273, subject to adjustment hereunder
         (the "Exercise Price").

                  c) Cashless Exercise. If at any time after one year from the
         date of issuance of this Warrant there is no effective Registration
         Statement registering the resale of the Warrant Shares by the Holder,
         then this Warrant may also be exercised at such time by means of a
         "cashless exercise" in which the Holder shall be entitled to receive a
         certificate for the number of Warrant Shares equal to the quotient
         obtained by dividing [(A-B) (X)] by (A), where:

                  (A) =   the Closing Price on the Trading Day immediately
                          preceding the date of such election;

                  (B) =   the Exercise Price of this Warrant, as adjusted; and

                  (X) =   the number of Warrant Shares issuable upon exercise
                          of this Warrant in accordance with the terms of this
                          Warrant by means of a cash exercise rather than a
                          cashless exercise.

                                       1
<PAGE>

                  Notwithstanding anything herein to the contrary, on the
         Termination Date, this Warrant shall be automatically exercised via
         cashless exercise pursuant to this Section 2(c).

                  d) Exercise Limitations; Holder's Restrictions. The Holder
         shall not have the right to exercise any portion of this Warrant,
         pursuant to Section 2(c) or otherwise, to the extent that after giving
         effect to such issuance after exercise, the Holder (together with the
         Holder's affiliates), as set forth on the applicable Notice of
         Exercise, would beneficially own in excess of 4.99% of the number of
         shares of the Common Stock outstanding immediately after giving effect
         to such issuance. For purposes of the foregoing sentence, the number of
         shares of Common Stock beneficially owned by the Holder and its
         affiliates shall include the number of shares of Common Stock issuable
         upon exercise of this Warrant with respect to which the determination
         of such sentence is being made, but shall exclude the number of shares
         of Common Stock which would be issuable upon (A) exercise of the
         remaining, nonexercised portion of this Warrant beneficially owned by
         the Holder or any of its affiliates and (B) exercise or conversion of
         the unexercised or nonconverted portion of any other securities of the
         Company (including, without limitation, any other Debentures or
         Warrants) subject to a limitation on conversion or exercise analogous
         to the limitation contained herein beneficially owned by the Holder or
         any of its affiliates. Except as set forth in the preceding sentence,
         for purposes of this Section 2(d), beneficial ownership shall be
         calculated in accordance with Section 13(d) of the Exchange Act, it
         being acknowledged by Holder that the Company is not representing to
         Holder that such calculation is in compliance with Section 13(d) of the
         Exchange Act and Holder is solely responsible for any schedules
         required to be filed in accordance therewith. To the extent that the
         limitation contained in this Section 2(d) applies, the determination of
         whether this Warrant is exercisable (in relation to other securities
         owned by the Holder) and of which a portion of this Warrant is
         exercisable shall be in the sole discretion of such Holder, and the
         submission of a Notice of Exercise shall be deemed to be such Holder's
         determination of whether this Warrant is exercisable (in relation to
         other securities owned by such Holder) and of which portion of this
         Warrant is exercisable, in each case subject to such aggregate
         percentage limitation, and the Company shall have no obligation to
         verify or confirm the accuracy of such determination. For purposes of
         this Section 2(d), in determining the number of outstanding shares of
         Common Stock, the Holder may rely on the number of outstanding shares
         of Common Stock as reflected in (x) the Company's most recent Form
         10-QSB or Form 10-KSB, as the case may be, (y) a more recent public
         announcement by the Company or (z) any other notice by the Company or
         the Company's Transfer Agent setting forth the number of shares of
         Common Stock outstanding. Upon the written or oral request of the
         Holder, the Company shall within two Trading Days confirm orally and in
         writing to the Holder the number of shares of Common Stock then
         outstanding. In any case, the number of outstanding shares of Common
         Stock shall be determined after giving effect to the conversion or
         exercise of securities of the Company, including this Warrant, by the
         Holder or its affiliates since the date as of which such number of
         outstanding shares of Common Stock was reported. The provisions of this
         Section 2(d) may be waived by the Holder upon, at the election of the
         Holder, not less than 61 days' prior notice to the Company, and the
         provisions of this Section 2(d) shall continue to apply until such 61st
         day (or such later date, as determined by the Holder, as may be
         specified in such notice of waiver).

                  e) Mechanics of Exercise.

                           i. Authorization of Warrant Shares. The Company
                  covenants that all Warrant Shares which may be issued upon the
                  exercise of the purchase rights represented by this Warrant
                  will, upon exercise of the purchase rights represented by this
                  Warrant, be duly authorized, validly issued, fully paid and
                  nonassessable and free from all taxes, liens and charges in
                  respect of the issue thereof (other than taxes in respect of
                  any transfer occurring contemporaneously with such issue).

                                       2
<PAGE>

                           ii. Delivery of Certificates Upon Exercise.
                  Certificates for shares purchased hereunder shall be
                  transmitted by the transfer agent of the Company to the Holder
                  by crediting the account of the Holder's prime broker with the
                  Depository Trust Company through its Deposit Withdrawal Agent
                  Commission ("DWAC") system if the Company is a participant in
                  such system, and otherwise by physical delivery to the address
                  specified by the Holder in the Notice of Exercise within 5
                  Trading Days from the delivery to the Company of the Notice of
                  Exercise, surrender of this Warrant and payment of the
                  aggregate Exercise Price as set forth above ("Warrant Share
                  Delivery Date"); provided, however, in the event the Warrant
                  is not surrendered or the aggregate Exercise Price is not
                  received by the Company within 5 Trading Days after the date
                  in which Notice of Exercise shall be delivered by facsimile
                  copy, the Warrant Share Delivery Date shall be deemed to have
                  been extended to the extent such 5 Trading Day period is
                  exceeded. This Warrant shall be deemed to have been exercised
                  on the date the Exercise Price is received by the Company. The
                  Warrant Shares shall be deemed to have been issued, and 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 date the Warrant has been exercised by
                  payment to the Company of the Exercise Price and all taxes
                  required to be paid by the Holder, if any, pursuant to Section
                  2(e)(vii) prior to the issuance of such shares, have been
                  paid.

                           iii. Delivery of New Warrants Upon Exercise. If this
                  Warrant shall have been exercised in part, the Company shall,
                  at the time of delivery of the certificate or certificates
                  representing Warrant Shares, deliver to Holder a new Warrant
                  evidencing the rights of Holder to purchase the unpurchased
                  Warrant Shares called for by this Warrant, which new Warrant
                  shall in all other respects be identical with this Warrant.

                           iv. Rescission Rights. If the Company fails to cause
                  its transfer agent to transmit to the Holder a certificate or
                  certificates representing the Warrant Shares pursuant to this
                  Section 2(e) by the Second Trading Day following the Warrant
                  Share Delivery Date, then the Holder will have the right to
                  rescind such exercise.

                           v. Compensation for Buy-In on Failure to Timely
                  Deliver Certificates Upon Exercise. In addition to any other
                  rights available to the Holder, if the Company fails to cause
                  its transfer agent to transmit to the Holder a certificate or
                  certificates representing the Warrant Shares pursuant to an
                  exercise on or before the Warrant Share Delivery Date, and if
                  after such date the Holder is required by its broker to
                  purchase (in an open market transaction or otherwise) shares
                  of Common Stock to deliver in satisfaction of a sale by the
                  Holder of the Warrant Shares which the Holder anticipated
                  receiving upon such exercise (a "Buy-In"), then the Company
                  shall (1) pay in cash to the Holder the amount by which (x)
                  the Holder's total purchase price (including brokerage
                  commissions, if any) for the shares of Common Stock so
                  purchased exceeds (y) the amount obtained by multiplying (A)
                  the number of Warrant Shares that the Company was required to
                  deliver to the Holder in connection with the exercise at issue
                  times (B) the price at which the sell order giving rise to
                  such purchase obligation was executed, and (2) at the option
                  of the Holder, either reinstate the portion of the Warrant and
                  equivalent number of Warrant Shares for which such exercise
                  was not honored or deliver to the Holder the number of shares
                  of Common Stock that would have been issued had the Company
                  timely complied with its exercise and delivery obligations
                  hereunder. For example, if the Holder purchases Common Stock
                  having a total purchase price of $11,000 to cover a Buy-In
                  with respect to an attempted exercise of shares of Common
                  Stock with an aggregate sale price giving rise to such
                  purchase obligation of $10,000, under clause (1) of the
                  immediately preceding sentence the Company shall be required
                  to pay the Holder $1,000. The Holder shall provide the Company
                  written notice indicating the amounts payable to the Holder in
                  respect of the Buy-In, together with applicable confirmations
                  and other evidence reasonably requested by the Company.
                  Nothing herein shall limit a Holder's right to pursue any
                  other remedies available to it hereunder, at law or in equity
                  including, without limitation, a decree of specific
                  performance and/or injunctive relief with respect to the
                  Company's failure to timely deliver certificates representing
                  shares of Common Stock upon exercise of the Warrant as
                  required pursuant to the terms hereof.

                                       3
<PAGE>

                           vi. No Fractional Shares or Scrip. No fractional
                  shares or scrip representing fractional shares shall be issued
                  upon the exercise of this Warrant. As to any fraction of a
                  share which Holder would otherwise be entitled to purchase
                  upon such exercise, the Company shall pay a cash adjustment in
                  respect of such final fraction in an amount equal to such
                  fraction multiplied by the Exercise Price.

                           vii. Charges, Taxes and Expenses. Issuance of
                  certificates for Warrant Shares shall be made without charge
                  to the Holder for any issue or transfer tax or other
                  incidental expense in respect of the issuance of such
                  certificate, all of which taxes and expenses shall be paid by
                  the Company, and such certificates shall be issued in the name
                  of the Holder or in such name or names as may be directed by
                  the Holder; provided, however, that in the event certificates
                  for Warrant Shares are to be issued in a name other than the
                  name of the Holder, this Warrant when surrendered for exercise
                  shall be accompanied by the Assignment Form attached hereto
                  duly executed by the Holder; and the Company may require, as a
                  condition thereto, the payment of a sum sufficient to
                  reimburse it for any transfer tax incidental thereto.

                           viii. Closing of Books. The Company will not close
                  its stockholder books or records in any manner which prevents
                  the timely exercise of this Warrant, pursuant to the terms
                  hereof.

         Section 3.        Certain Adjustments.

                  a) Stock Dividends and Splits. If the Company, at any time
         while this Warrant is outstanding: (A) pays a stock dividend or
         otherwise make a distribution or distributions on shares of its Common
         Stock or any other equity or equity equivalent securities payable in
         shares of Common Stock (which, for avoidance of doubt, shall not
         include any shares of Common Stock issued by the Company pursuant to
         this Warrant), (B) subdivides outstanding shares of Common Stock into a
         larger number of shares, (C) combines (including by way of reverse
         stock split) outstanding shares of Common Stock into a smaller number
         of shares, or (D) issues by reclassification of shares of the Common
         Stock any shares of capital stock of the Company, then in each case the
         Exercise Price shall be multiplied by a fraction of which the numerator
         shall be the number of shares of Common Stock (excluding treasury
         shares, if any) outstanding before such event and of which the
         denominator shall be the number of shares of Common Stock outstanding
         after such event and the number of shares issuable upon exercise of
         this Warrant shall be proportionately adjusted. Any adjustment made
         pursuant to this Section 3(a) shall become effective immediately after
         the record date for the determination of stockholders entitled to
         receive such dividend or distribution and shall become effective
         immediately after the effective date in the case of a subdivision,
         combination or re-classification.

                  b) Subsequent Equity Sales. If the Company or any Subsidiary
         thereof, as applicable, at any time while this Warrant is outstanding,
         shall offer, sell, grant any option to purchase or offer, sell or grant
         any right to reprice its securities, or otherwise dispose of or issue
         (or announce any offer, sale, grant or any option to purchase or other
         disposition) any Common Stock or Common Stock Equivalents entitling any
         Person to acquire shares of Common Stock, at an effective price per
         share less than the then Exercise Price (such lower price, the "Base
         Share Price" and such issuances collectively, a "Dilutive Issuance"),
         as adjusted hereunder (if the holder of the Common Stock or Common
         Stock Equivalents so issued shall at any time, whether by operation of
         purchase price adjustments, reset provisions, floating conversion,
         exercise or exchange prices or otherwise, or due to warrants, options
         or rights per share which is issued in connection with such issuance,
         be entitled to receive shares of Common Stock at an effective price per
         share which is less than the Exercise Price, such issuance shall be
         deemed to have occurred for less than the Exercise Price), then, the
         Exercise Price shall be reduced to equal the Base Share Price and the
         number of Warrant Shares issuable hereunder shall be increased such
         that the aggregate Exercise Price payable hereunder, after taking into
         account the decrease in the Exercise Price, shall be equal to the
         aggregate Exercise Price prior to such adjustment. Such adjustment
         shall be made whenever such Common Stock or Common Stock Equivalents
         are issued. Such adjustment shall be made whenever such Common Stock or
         Common Stock Equivalents are issued; however, if the Exercise Price is
         adjusted due to the issuance of Common Stock Equivalents and all of
         such Common Stock Equivalents expire pursuant to their own terms before
         they are exercised, exchanged and/or converted, an upward adjustment
         will be made such that the Exercise Price will no longer reflect the
         issuance of such Common Stock Equivalents. The Company shall notify the
         Holder in writing, no later than the Trading Day following the issuance
         of any Common Stock or Common Stock Equivalents subject to this
         section, indicating therein the applicable issuance price, or of
         applicable reset price, exchange price, conversion price and other
         pricing terms (such notice the "Dilutive Issuance Notice"). For
         purposes of clarification, whether or not the Company provides a
         Dilutive Issuance Notice pursuant to this Section 3(b), upon the
         occurrence of any Dilutive Issuance, after the date of such Dilutive
         Issuance the Holder is entitled to receive a number of Warrant Shares
         based upon the Base Share Price regardless of whether the Holder
         accurately refers to the Base Share Price in the Notice of Exercise.

                                       4
<PAGE>

                  c) Pro Rata Distributions. If the Company, at any time prior
         to the Termination Date, shall distribute to all holders of Common
         Stock (and not to Holders of the Warrants) evidences of its
         indebtedness or assets or rights or warrants to subscribe for or
         purchase any security other than the Common Stock (which shall be
         subject to Section 3(b)), then in each such case the Exercise Price
         shall be adjusted by multiplying the Exercise Price in effect
         immediately prior to the record date fixed for determination of
         stockholders entitled to receive such distribution by a fraction of
         which the denominator shall be the Closing Price determined as of the
         record date mentioned above, and of which the numerator shall be such
         Closing Price on such record date less the then per share fair market
         value at such record date of the portion of such assets or evidence of
         indebtedness so distributed applicable to one outstanding share of the
         Common Stock as determined by the Board of Directors in good faith. In
         either case the adjustments shall be described in a statement provided
         to the Holders of the portion of assets or evidences of indebtedness so
         distributed or such subscription rights applicable to one share of
         Common Stock. Such adjustment shall be made whenever any such
         distribution is made and shall become effective immediately after the
         record date mentioned above.

                  d) Calculations. All calculations under this Section 3 shall
         be made to the nearest cent or the nearest 1/100th of a share, as the
         case may be. The number of shares of Common Stock outstanding at any
         given time shall not includes shares of Common Stock owned or held by
         or for the account of the Company, and the description of any such
         shares of Common Stock shall be considered on issue or sale of Common
         Stock. For purposes of this Section 3, the number of shares of Common
         Stock deemed to be issued and outstanding as of a given date shall be
         the sum of the number of shares of Common Stock (excluding treasury
         shares, if any) issued and outstanding.

                  e) Notice to Holders.

                           i. Adjustment to Exercise Price. Whenever the
                  Exercise Price is adjusted pursuant to this Section 3, the
                  Company shall promptly mail to each Holder a notice setting
                  forth the Exercise Price after such adjustment and setting
                  forth a brief statement of the facts requiring such
                  adjustment. If the Company issues a variable rate security,
                  despite the prohibition thereon in the Purchase Agreement, the
                  Company shall be deemed to have issued Common Stock or Common
                  Stock Equivalents at the lowest possible conversion or
                  exercise price at which such securities may be converted or
                  exercised in the case of a Variable Rate Transaction (as
                  defined in the Purchase Agreement), or the lowest possible
                  adjustment price in the case of an MFN Transaction (as defined
                  in the Purchase Agreement.

                                       5
<PAGE>

                           ii. Notice to Allow Exercise by Holder. If (A) the
                  Company shall declare a dividend (or any other distribution)
                  on the Common Stock; (B) the Company shall declare a special
                  nonrecurring cash dividend on or a redemption of the Common
                  Stock; (C) the Company shall authorize the granting to all
                  holders of the Common Stock rights or warrants to subscribe
                  for or purchase any shares of capital stock of any class or of
                  any rights; (D) the approval of any stockholders of the
                  Company shall be required in connection with any
                  reclassification of the Common Stock, any consolidation or
                  merger to which the Company is a party, any sale or transfer
                  of all or substantially all of the assets of the Company, of
                  any compulsory share exchange whereby the Common Stock is
                  converted into other securities, cash or property; (E) the
                  Company shall authorize the voluntary or involuntary
                  dissolution, liquidation or winding up of the affairs of the
                  Company; then, in each case, the Company shall cause to be
                  mailed to the Holder at its last addresses as it shall appear
                  upon the Warrant Register of the Company, at least 20 calendar
                  days prior to the applicable record or effective date
                  hereinafter specified, a notice stating (x) the date on which
                  a record is to be taken for the purpose of such dividend,
                  distribution, redemption, rights or warrants, or if a record
                  is not to be taken, the date as of which the holders of the
                  Common Stock of record to be entitled to such dividend,
                  distributions, redemption, rights or warrants are to be
                  determined or (y) the date on which such reclassification,
                  consolidation, merger, sale, transfer or share exchange is
                  expected to become effective or close, and the date as of
                  which it is expected that holders of the Common Stock of
                  record shall be entitled to exchange their shares of the
                  Common Stock for securities, cash or other property
                  deliverable upon such reclassification, consolidation, merger,
                  sale, transfer or share exchange; provided, that the failure
                  to mail such notice or any defect therein or in the
                  mailing thereof shall not affect the validity of the corporate
                  action required to be specified in such notice. The Holder is
                  entitled to exercise this Warrant during the 20-day period
                  commencing the date of such notice to the effective date of
                  the event triggering such notice.

                  f) Fundamental Transaction. If, at any time while this Warrant
         is outstanding, (A) the Company effects any merger or consolidation of
         the Company with or into another Person, (B) the Company effects any
         sale of all or substantially all of its assets in one or a series of
         related transactions, (C) any tender offer or exchange offer (whether
         by the Company or another Person) is completed pursuant to which
         holders of Common Stock are permitted to tender or exchange their
         shares for other securities, cash or property, or (D) the Company
         effects any reclassification of the Common Stock or any compulsory
         share exchange pursuant to which the Common Stock is effectively
         converted into or exchanged for other securities, cash or property (in
         any such case, a "Fundamental Transaction"), then, upon any subsequent
         conversion of this Warrant, the Holder shall have the right to receive,
         for each Warrant Share that would have been issuable upon such exercise
         absent such Fundamental Transaction, at the option of the Holder, (a)
         upon exercise of this Warrant, the number of shares of Common Stock of
         the successor or acquiring corporation or of the Company, if it is the
         surviving corporation, and Alternate Consideration receivable upon or
         as a result of such reorganization, reclassification, merger,
         consolidation or disposition of assets by a Holder of the number of
         shares of Common Stock for which this Warrant is exercisable
         immediately prior to such event or (b) if the Company is acquired in an
         all cash transaction, cash equal to the value of this Warrant as
         determined in accordance with the Black Scholes option pricing formula
         (the "Alternate Consideration"). For purposes of any such exercise, the
         determination of the Exercise Price shall be appropriately adjusted to
         apply to such Alternate Consideration based on the amount of Alternate
         Consideration issuable in respect of one share of Common Stock in such
         Fundamental Transaction, and the Company shall apportion the Exercise
         Price among the Alternate Consideration in a reasonable manner
         reflecting the relative value of any different components of the
         Alternate Consideration. If holders of Common Stock are given any
         choice as to the securities, cash or property to be received in a
         Fundamental Transaction, then the Holder shall be given the same choice
         as to the Alternate Consideration it receives upon any exercise of this
         Warrant following such Fundamental Transaction. To the extent necessary
         to effectuate the foregoing provisions, any successor to the Company or
         surviving entity in such Fundamental Transaction shall issue to the
         Holder a new warrant consistent with the foregoing provisions and
         evidencing the Holder's right to exercise such warrant into Alternate
         Consideration. The terms of any agreement pursuant to which a
         Fundamental Transaction is effected shall include terms requiring any
         such successor or surviving entity to comply with the provisions of
         this paragraph (f) and insuring that this Warrant (or any such
         replacement security) will be similarly adjusted upon any subsequent
         transaction analogous to a Fundamental Transaction.

                  g) Exempt Issuance. Notwithstanding the foregoing, no
         adjustments, Alternate Consideration nor notices shall be made, paid or
         issued under this Section 3 in respect of an Exempt Issuance.

                  h) Voluntary Adjustment By Company. The Company may at any
         time during the term of this Warrant reduce the then current Exercise
         Price to any amount and for any period of time deemed appropriate by
         the Board of Directors of the Company.

                                       6
<PAGE>

         Section 4.        Transfer of Warrant.

                  a) Transferability. Subject to compliance with any applicable
         securities laws and the conditions set forth in Sections 5(a) and 4(d)
         hereof and to the provisions of Section 4.1 of the Purchase Agreement,
         this Warrant and all rights hereunder are transferable, in whole or in
         part, upon surrender of this Warrant at the principal office of the
         Company, together with a written assignment of this Warrant
         substantially in the form attached hereto duly executed by the Holder
         or its agent or attorney and funds sufficient to pay any transfer taxes
         payable upon the making of such transfer. Upon such surrender and, if
         required, such payment, the Company shall execute and deliver a new
         Warrant or Warrants in the name of the assignee or assignees and in the
         denomination or denominations specified in such instrument of
         assignment, and shall issue to the assignor a new Warrant evidencing
         the portion of this Warrant not so assigned, and this Warrant shall
         promptly be cancelled. A Warrant, if properly assigned, may be
         exercised by a new holder for the purchase of Warrant Shares without
         having a new Warrant issued.

                  b) New Warrants. This Warrant may be divided or combined with
         other Warrants upon presentation hereof at the aforesaid office of the
         Company, together with a written notice specifying the names and
         denominations in which new Warrants are to be issued, signed by the
         Holder or its agent or attorney. Subject to compliance with Section
         4(a), as to any transfer which may be involved in such division or
         combination, the Company shall execute and deliver a new Warrant or
         Warrants in exchange for the Warrant or Warrants to be divided or
         combined in accordance with such notice.

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

                  d) Transfer Restrictions. If, at the time of the surrender of
         this Warrant in connection with any transfer of this Warrant, the
         transfer of this Warrant shall not be registered pursuant to an
         effective registration statement under the Securities Act and under
         applicable state securities or blue sky laws, the Company may require,
         as a condition of allowing such transfer (i) that the Holder or
         transferee of this Warrant, as the case may be, furnish to the Company
         a written opinion of counsel (which opinion shall be in form, substance
         and scope customary for opinions of counsel in comparable transactions)
         to the effect that such transfer may be made without registration under
         the Securities Act and under applicable state securities or blue sky
         laws, (ii) that the holder or transferee execute and deliver to the
         Company an investment letter in form and substance acceptable to the
         Company and (iii) that the transferee be an "accredited investor" as
         defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
         promulgated under the Securities Act or a qualified institutional buyer
         as defined in Rule 144A(a) under the Securities Act.

         Section 5.        Miscellaneous.

                  a) Title to Warrant. Prior to the Termination Date and subject
         to compliance with applicable laws and Section 4 of this Warrant, this
         Warrant and all rights hereunder are transferable, in whole or in part,
         at the office or agency of the Company by the Holder in person or by
         duly authorized attorney, upon surrender of this Warrant together with
         the Assignment Form annexed hereto properly endorsed. The transferee
         shall sign an investment letter in form and substance reasonably
         satisfactory to the Company.

                  b) No Rights as Shareholder Until Exercise. This Warrant does
         not entitle the Holder to any voting rights or other rights as a
         shareholder of the Company prior to the exercise hereof. Upon the
         surrender of this Warrant and the payment of the aggregate Exercise
         Price (or by means of a cashless exercise), the Warrant Shares so
         purchased shall be and be deemed to be issued to such Holder as the
         record owner of such shares as of the close of business on the later of
         the date of such surrender or payment.

                                       7
<PAGE>

                  c) Loss, Theft, Destruction or Mutilation of Warrant. The
         Company covenants that upon receipt by the Company of evidence
         reasonably satisfactory to it of the loss, theft, destruction or
         mutilation of this Warrant or any stock certificate relating to the
         Warrant Shares, and in case of loss, theft or destruction, of indemnity
         or security reasonably satisfactory to it (which, in the case of the
         Warrant, shall not include the posting of any bond), and upon surrender
         and cancellation of such Warrant or stock certificate, if mutilated,
         the Company will make and deliver a new Warrant or stock certificate of
         like tenor and dated as of such cancellation, in lieu of such Warrant
         or stock certificate.

                  d) Saturdays, Sundays, Holidays, etc. If the last or appointed
         day for the taking of any action or the expiration of any right
         required or granted herein shall be a Saturday, Sunday or a legal
         holiday, then such action may be taken or such right may be exercised
         on the next succeeding day not a Saturday, Sunday or legal holiday.

                  e) Authorized Shares.

                           The Company covenants that during the period the
                  Warrant is outstanding, it will reserve from its authorized
                  and unissued Common Stock a sufficient number of shares to
                  provide for the issuance of the Warrant Shares upon the
                  exercise of any purchase rights under this Warrant. The
                  Company further covenants that its issuance of this Warrant
                  shall constitute full authority to its officers who are
                  charged with the duty of executing stock certificates to
                  execute and issue the necessary certificates for the Warrant
                  Shares upon the exercise of the purchase rights under this
                  Warrant. The Company will take all such reasonable action as
                  may be necessary to assure that such Warrant Shares may be
                  issued as provided herein without violation of any applicable
                  law or regulation, or of any requirements of the Trading
                  Market upon which the Common Stock may be listed.

                           Except and to the extent as waived or consented to by
                  the Holder, the Company shall not by any action, including,
                  without limitation, amending 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, but will at all times in good faith assist in
                  the carrying out of all such terms and in the taking of all
                  such actions as may be necessary or appropriate to protect the
                  rights of Holder as set forth in this Warrant against
                  impairment. Without limiting the generality of the foregoing,
                  the Company will (a) not increase the par value of any Warrant
                  Shares above the amount payable therefor upon such exercise
                  immediately prior to such increase in par value, (b) take all
                  such action as may be necessary or appropriate in order that
                  the Company may validly and legally issue fully paid and
                  nonassessable Warrant Shares upon the exercise of this
                  Warrant, and (c) use commercially reasonable efforts to obtain
                  all such authorizations, exemptions or consents from any
                  public regulatory body having jurisdiction thereof as may be
                  necessary to enable the Company to perform its obligations
                  under this Warrant.

                           Before taking any action which would result in an
                  adjustment in the number of Warrant Shares for which this
                  Warrant is exercisable or in the Exercise Price, the Company
                  shall obtain all such authorizations or exemptions thereof, or
                  consents thereto, as may be necessary from any public
                  regulatory body or bodies having jurisdiction thereof.

                  f) Jurisdiction. This Warrant shall constitute a contract
         under the laws of New York and all questions concerning the
         construction, validity, enforcement and interpretation of this Warrant
         shall be determined in accordance with the provisions of the Purchase
         Agreement.

                  g) Restrictions. The Holder acknowledges that the Warrant
         Shares acquired upon the exercise of this Warrant, if not registered,
         will have restrictions upon resale imposed by state and federal
         securities laws.

                                       8
<PAGE>

                  h) Nonwaiver and Expenses. No course of dealing or any delay
         or failure to exercise any right hereunder on the part of Holder shall
         operate as a waiver of such right or otherwise prejudice Holder's
         rights, powers or remedies, notwithstanding the fact that all rights
         hereunder terminate on the Termination Date. If the Company willfully
         and knowingly fails to comply with any provision of this Warrant, which
         results in any material damages to the Holder, the Company shall pay to
         Holder such amounts as shall be sufficient to cover any costs and
         expenses including, but not limited to, reasonable attorneys' fees,
         including those of appellate proceedings, incurred by Holder in
         collecting any amounts due pursuant hereto or in otherwise enforcing
         any of its rights, powers or remedies hereunder.

                  i) Notices. Any notice, request or other document required or
         permitted to be given or delivered to the Holder by the Company shall
         be delivered in accordance with the notice provisions of the Purchase
         Agreement.

                  j) Limitation of Liability. No provision hereof, in the
         absence of any affirmative action by Holder to exercise this Warrant or
         purchase Warrant Shares, and no enumeration herein of the rights or
         privileges of Holder, shall give rise to any liability of Holder for
         the purchase price of any Common Stock or as a stockholder of the
         Company, whether such liability is asserted by the Company or by
         creditors of the Company.

                  k) Remedies. Holder, in addition to being entitled to exercise
         all rights granted by law, including recovery of damages, will be
         entitled to specific performance of its rights under this Warrant. The
         Company agrees that monetary damages would not be adequate compensation
         for any loss incurred by reason of a breach by it of the provisions of
         this Warrant and hereby agrees to waive the defense in any action for
         specific performance that a remedy at law would be adequate.

                  l) Successors and Assigns. Subject to applicable securities
         laws, this Warrant and the rights and obligations evidenced hereby
         shall inure to the benefit of and be binding upon the successors of the
         Company and the successors and permitted assigns of Holder. The
         provisions of this Warrant are intended to be for the benefit of all
         Holders from time to time of this Warrant and shall be enforceable by
         any such Holder or holder of Warrant Shares.

                  m) Amendment. This Warrant may be modified or amended or the
         provisions hereof waived with the written consent of the Company and
         the Holder.

                  n) Severability. Wherever possible, each provision of this
         Warrant shall be interpreted in such manner as to be effective and
         valid under applicable law, but if any provision of this Warrant shall
         be prohibited by or invalid under applicable law, such provision shall
         be ineffective to the extent of such prohibition or invalidity, without
         invalidating the remainder of such provisions or the remaining
         provisions of this Warrant.

                  o) Headings. The headings used in this Warrant are for the
         convenience of reference only and shall not, for any purpose, be deemed
         a part of this Warrant.

                              ********************

                                       9
<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated:  November 12, 2004

                        WAVERIDER COMMUNICATIONS INC.

                        By:__________________________________________
                             Name:  T. Scott Worthington
                             Title:  Vice President and Chief Financial Officer

                                       10
<PAGE>
                               NOTICE OF EXERCISE

To:        WaveRider Communications Inc.

         (1) The undersigned hereby elects to purchase ________ Warrant Shares
of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

         (2) Payment shall take the form of (check applicable box):
                           [ ] in lawful money of the United States; or
                           [ ] the cancellation of such number of Warrant Shares
                           as is necessary, in accordance with the formula set
                           forth in subsection 2(c), to exercise this Warrant
                           with respect to the maximum number of Warrant Shares
                           purchasable pursuant to the cashless exercise
                           procedure set forth in subsection 2(c).

         (3) Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

                                -------------------------------

The Warrant Shares shall be delivered to the following:

                                -------------------------------

                                -------------------------------

                                -------------------------------

         (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________
Signature of Authorized Signatory of Investing Entity: _________________________
Name of Authorized Signatory: __________________________________________________
Title of Authorized Signatory: _________________________________________________
Date: __________________________________________________________________________

                                       11
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

         FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

_________________________________________________________________.

_________________________________________________________________.

                                             Dated:  ______________, _______

                                Holder's Signature: ____________________________

                                Holder's Address:   ____________________________

                                                    ____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                       12

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