Document:

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                                                                    EXHIBIT 10.3

         THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
         NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
         THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
         JURISDICTION. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED OR
         SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
         SECURITIES UNDER APPLICABLE SECURITIES LAWS UNLESS OFFERED, SOLD OR
         TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THOSE LAWS.

                        FRANKLIN TELECOMMUNICATIONS CORP.

                               PROTECTIVE WARRANT

         THIS CERTIFIES THAT, for value received, ___________ , or registered
assigns ("Holder"), is entitled to purchase from Franklin Telecommunications
Corp.,a California corporation (the "Company"), at any time or from time to
time during the Exercise Period (as defined in Section 1 hereof), up to a total
number, determined in accordance with Section 2.2 hereof, of fully paid and
nonassessable shares of Common Stock, without par value, of the Company (the
"Common Stock"), as the same may be adjusted from time to time pursuant to
Section 7 hereof, at the Exercise Price (hereinafter defined), as the same may
be adjusted pursuant to Section 7 hereof.

         SECTION 1. DEFINITIONS.

         "Agreement" shall mean the Securities Purchase Agreement, dated the
date hereof, between the Company and the Investor.

         "Capital Shares" shall mean the Common Stock and any shares of any
other class of common stock whether now or hereafter authorized, having the
right to participate in the distribution of earnings and assets of the Company.

         "Effective Date" shall mean the date on which the Registration
Statement required to be filed under Section 2.1 of the Registration Rights
Agreement is declared effective by the Securities and Exchange Commission.

         "Exercise Date" shall mean the date this Protective Warrant, the
Exercise Notice and the Aggregate Exercise Price are received by the Company.

         "Exercise Notice" shall mean the exercise form attached hereto as
Exhibit A duly executed by the Warrant Holder.

         "Exercise Period" shall mean the period beginning on the Effective Date
and continuing for a sixty-day period thereafter

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         "Exercise Price" as of the date hereof shall mean $0.01 per share of
Common Stock, subject to the adjustments provided for in Section 7 of this
Protective Warrant.

         "Per Share Protective Warrant Value" shall mean the difference
resulting from subtracting the Exercise Price from the closing price of one
share of Common Stock on the Trading Day immediately preceding the Exercise
Date.

         "Registration Rights Agreement" shall mean the registration rights
agreement, dated the date hereof between the Company and the Investor.

         "Subscription Date" shall mean the date on which the Agreement is
executed and delivered by the parties hereto.

         "Warrant Holder" shall mean the Investor or any assignee or transferee
of all or any portion of this Protective Warrant.

         Other capitalized terms used but not defined herein shall have their
respective meanings set forth in the Agreement.

         SECTION 2. EXERCISABILITY.

             2.1 Timing. If the closing price of the Company's Common Stock on
the American Stock Exchange, or such other principal securities market or
exchange on which the Company's Common Stock is traded, is lower than $1.50 per
share on the Effective Date (the "Effective Date Price"), this Protective
Warrant shall become immediately exercisable as provided herein. If the
Effective Date Price is $1.50 or greater, than this Warrant shall expire on the
Effective Date.

             2.2 Number of Shares. The number of shares of Common Stock, if any,
for which this Protective Warrant is exercisable (the "Protective Warrant
Shares") shall be determined by subtracting (x) the Investment Amount divided by
1.50 from (y) the Investment Amount divided by the greater of (A) 75% of the
Effective Date Price, or (B) $1.00.

         SECTION 3. EXERCISE.

             3.1 Method of Exercise. This Protective Warrant may be exercised in
whole or in part (but not as to a fractional share of Common Stock), at any time
and from time to time during the Exercise Period, by the Warrant Holder by (i)
the surrender of this Protective Warrant, the Exercise Notice and the aggregate
Exercise Price to the Company , or (ii) the delivery by facsimile of an executed
and completed Exercise Notice to the Company and delivery to the Company within
three business days thereafter of this Protective Warrant, the original Exercise
Notice and the Aggregate Exercise Price.

             3.2 Payment of Aggregate Exercise Price. Subject to Section 3.2
below, payment of the Aggregate Exercise Price shall be made by check or bank
draft payable to the order of the Company or by wire transfer to an account
designated by the Company.

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             3.3 Cashless Exercise. As an alternative to payment of the
aggregate Exercise Price in accordance with Section 3.2. above, the Warrant
Holder may elect to effect a cashless exercise by so indicating on the Exercise
Notice and including a calculation of the number of shares of Common Stock to be
issued upon such exercise in accordance with the terms hereof (a "Cashless
Exercise"). In the event of a Cashless Exercise, the Warrant Holder shall
surrender this Protective Warrant for that number of shares of Common Stock
determined by (i) multiplying the number of Protective Warrant Shares for which
this Protective Warrant is being exercised by the Per Share Protective Warrant
Value and (ii) dividing the product by the closing price of one share of the
Common Stock on the Trading Day immediately preceding the Exercise Date.

             3.4 Replacement Protective Warrant. In the event that the
Protective Warrant is not exercised in full, the number of Protective Warrant
Shares shall be reduced by the number of such Protective Warrant Shares for
which this Protective Warrant is exercised, and the Company, at its expense,
shall forthwith issue and deliver to the Warrant Holder a new Protective Warrant
of like tenor in the name of the Warrant Holder or as the Warrant Holder may
request, reflecting such adjusted number of Protective Warrant Shares.

         SECTION 4. DELIVERY OF STOCK CERTIFICATES.

             4.1 Subject to the terms and conditions of this Protective Warrant,
as soon as practicable after the exercise of this Protective Warrant in full or
in part, and in any event within five Trading Days thereafter, the Company at
its expense (including, without limitation, the payment by it of any applicable
issue taxes) will cause to be issued in the name of and delivered to the Warrant
Holder, or as the Warrant Holder may lawfully direct, a certificate or
certificates for the number of validly issued, fully paid and non-assessable
Protective Warrant Shares to which the Warrant Holder shall be entitled on such
exercise, together with any other stock or other securities or property
(including cash, where applicable) to which the Warrant Holder is entitled upon
such exercise in accordance with the provisions hereof; provided, however, that
any such delivery to a location outside of the United States shall also be made
within seven Trading Days after the exercise of this Protective Warrant in full
or in part.

             4.2 This Protective Warrant may not be exercised as to fractional
shares of Common Stock. In the event that the exercise of this Protective
Warrant, in full or in part, would result in the issuance of any fractional
share of Common Stock, then in such event the Warrant Holder shall receive in
cash an amount equal to the closing price of such fractional share within five
Trading Days.

         SECTION 5. REPRESENTATIONS, ADDITIONAL WARRANTIES AND COVENANTS OF THE
COMPANY.

             5.1 The Company shall take all necessary action and proceedings as
may be required and permitted by applicable law, rule and regulation for the
legal and valid issuance of this Protective Warrant and the Protective Warrant
Shares to the Warrant Holder.

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             5.2 At all times during the Exercise Period, the Company shall take
all steps reasonably necessary and within its control to insure that the Common
Stock remains listed or quoted on the American Stock Exchange.

             5.3 The Protective Warrant Shares, when issued in accordance with
the terms hereof, will be duly authorized and, when paid for or issued in
accordance with the terms hereof, shall be validly issued, fully paid and
non-assessable.

             5.4 The Company has authorized and reserved for issuance to the
Warrant Holder the requisite number of shares of Common Stock to be issued
pursuant to this Protective Warrant. The Company shall at all times reserve and
keep available, solely for issuance and delivery as Protective Warrant Shares
hereunder, such shares of Common Stock as shall from time to time be issuable as
Protective Warrant Shares.

         SECTION 6. ADJUSTMENT OF THE EXERCISE PRICE. The Exercise Price and,
accordingly, the number of Protective Warrant Shares issuable upon exercise of
the Protective Warrant, shall be subject to adjustment from time to time upon
the happening of certain events as follows:

             6.1 Reclassification, Consolidation, Merger or Mandatory Share
Exchange. If the Company, at any time between the date of issuance of this
Warrant and the Effective Date (i) reclassifies or changes its Capital Shares or
(ii) consolidates, merges or effects a mandatory share exchange with or into
another corporation (other than a merger or mandatory share exchange with
another corporation in which the Company is a continuing corporation and that
does not result in any reclassification or change, or as a result of a
subdivision or combination of Capital Shares issuable upon exercise of this
Protective Warrant), then in any such event the Company, or such successor or
purchasing corporation, as the case may be, shall, without payment of any
additional consideration therefore, amend this Protective Warrant or issue a new
warrant providing that the Warrant Holder shall have rights not less favorable
to the holder than those then applicable to this Protective Warrant and to
receive upon exercise under such amendment of this Protective Warrant or new
warrant, in lieu of each share of Common Stock theretofore issuable upon
exercise of this Protective Warrant hereunder, the kind and amount of shares of
stock, other securities, money or property receivable upon such
reclassification, change, consolidation, merger, mandatory share exchange, sale
or transfer by the holder of one share of Common Stock issuable upon exercise of
this Protective Warrant had this Protective Warrant been exercised immediately
prior to such reclassification, change, consolidation, merger, mandatory share
exchange or sale or transfer. Such amended warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Section 6. The provisions of this Section 6.1 shall
similarly apply to successive reclassifications, changes, consolidations,
mergers, mandatory share exchanges and sales and transfers.

             6.2 Subdivision or Combination of Shares. If the Company, at any
time between the date of issuance of this Warrant and the Effective Date, shall
subdivide its Common Stock, the number of shares of Common Stock issuable to the
Investor hereunder shall be proportionately increased as of the effective date
of such subdivision, or, if the Company shall take a record of holders of its
Common Stock for the purpose of so subdividing, as of such record

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date, whichever is earlier. If the Company, at any time between the date of
issuance of this Warrant and the Effective Date, shall combine its Common Stock,
the number of shares of Common Stock issuable to the Investor hereunder shall be
proportionately decreased as of the effective date of such combination, or, if
the Company shall take a record of holders of its Common Stock for the purpose
of so combining, as of such record date, whichever is earlier.

             6.3 Stock Dividends. If the Company, at any time while this
Protective Warrant is unexpired and not exercised in full, shall pay a dividend
in its Capital Shares, or make any other distribution of its Capital Shares,
then the Exercise Price shall be adjusted, as of the date the Company shall take
a record of the holders of its Capital Shares for the purpose of receiving such
dividend or other distribution (or if no such record is taken, as at the date of
such payment or other distribution), to that price determined by multiplying the
Exercise Price in effect immediately prior to such payment or other distribution
by a fraction:

                 (i) the numerator of which shall be the total number of
Outstanding Capital Shares immediately prior to such dividend or distribution,
and

                 (ii) the denominator of which shall be the total number of
Outstanding Capital Shares immediately after such dividend or distribution. The
provisions of this subsection c. shall not apply under any of the circumstances
for which an adjustment is provided in subsections a. or b.

             6.4 Adjustment of Number of Shares. Upon each adjustment of the
Exercise Price pursuant to any provisions of this Section 6, the number of
Protective Warrant Shares issuable hereunder at the option of the Warrant Holder
shall be calculated, to the nearest one hundredth of a whole share, multiplying
the number of Protective Warrant Shares issuable prior to an adjustment by a
fraction:

                 (i) the numerator of which shall be the Exercise Price before
any adjustment pursuant to this Section 6; and

                 (ii) the denominator of which shall be the Exercise Price after
such adjustment.

             6.5 Liquidating Dividends, Etc. If the Company, at any time while
this Protective Warrant is unexpired and not exercised in full, makes a
distribution of its assets or evidences of indebtedness to the holders of its
Capital Shares as a dividend in liquidation or by way of return of capital or
other than as a dividend payable out of earnings or surplus legally available
for dividends under applicable law or any distribution to such holders made in
respect of the sale of all or substantially all of the Company's assets while an
exercise is pending, then the Warrant Holder shall be entitled to receive upon
such exercise of the Protective Warrant in addition to the Protective Warrant
Shares receivable in connection therewith, and without payment of any
consideration other than the Exercise Price, an amount in cash equal to the
value of such distribution per Capital Share multiplied by the number of
Protective Warrant Shares that, on the record date for such distribution, are
issuable upon such exercise of the Protective

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Warrant (with no further adjustment being made following any event which causes
a subsequent adjustment in the number of Protective Warrant Shares issuable),
and an appropriate provision therefor shall be made a part of any such
distribution. The value of a distribution that is paid in other than cash shall
be determined in good faith by the Board of Directors of the Company.

             6.6 Other Provisions Applicable to Adjustments Under this Section.
The following provisions will be applicable to the making of adjustments in any
Exercise Price hereinabove provided in this Section 6:

                 (i) Other Action Affecting Capital Shares. In case after the
date hereof the Company shall take any action affecting the number of
Outstanding Capital Shares, other than an action described in any of the
foregoing subsections a. through e. hereof, inclusive, which in the opinion of
the Company's Board of Directors would have a materially adverse effect upon the
rights of the Warrant Holder at the time of exercise of the Protective Warrant,
the Exercise Price shall be adjusted in such manner and at such time as the
Board of Directors on the advice of the Company's independent public accountants
may in good faith determine to be equitable in the circumstances.

                 (ii) Notice of Certain Actions. In the event the Company shall,
at a time while the Incentive Warrant is unexpired and outstanding, take any
action which may result in an adjustment of the Exercise Price, the Company
shall give to the Warrant Holder at its last address known to the Company
written notice of such action ten days in advance of its effective date in order
to afford to the Warrant Holder an opportunity to exercise the Incentive Warrant
prior to such action becoming effective.

                 (iii) Notice of Adjustments. Whenever the Exercise Price or
number of Incentive Warrant Shares shall be adjusted pursuant to Section 6
hereof, the Company shall promptly make a certificate signed by its Chief
Financial Officer, setting forth in reasonable detail the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment
was calculated, and the Exercise Price and number of Protective Warrant Shares
purchasable at that Exercise Price after giving effect to such adjustment, and
shall promptly cause copies of such certificate to be mailed (by first class and
postage prepaid) to the Warrant Holder.

         SECTION 7. NO IMPAIRMENT. The Company will not, by amendment of its
Articles of Incorporation or By-Laws 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 Protective 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
action as may be necessary or appropriate in order to protect the rights of the
Warrant Holder against impairment. Without limiting the generality of the
foregoing, the Company (a) will not increase the par value of any Protective
Warrant Shares above the amount payable therefor on such exercise, and (b) will
take all such action as may be reasonably necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable
Protective Warrant Shares on the exercise of this Protective Warrant.

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         SECTION 8. RIGHTS AS STOCKHOLDER. Prior to exercise of this Protective
Warrant, the Warrant Holder shall not be entitled to any rights as a stockholder
of the Company with respect to the Protective Warrant Shares, including (without
limitation) the right to vote such shares, receive dividends or other
distributions thereon or be notified of stockholder meetings. However, in the
event of any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled
to receive any dividend (other than a cash dividend) or other distribution, any
right to subscribe for, purchase or otherwise acquire any shares of stock of any
class or any other securities or property, or to receive any other right, the
Company shall mail to each Warrant Holder, at least ten days prior to the date
specified therein, a notice specifying the date on which any such record is to
be taken for the purpose of such dividend, distribution or right, and the amount
and character of such dividend, distribution or right.

         SECTION 9. REPLACEMENT OF PROTECTIVE WARRANT. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of the Protective Warrant and, in the case of any such loss, theft or
destruction of the Protective Warrant, upon delivery of an indemnity agreement
or security reasonably satisfactory in form and amount to the Company or, in the
case of any such mutilation, on surrender and cancellation of such Protective
Warrant, the Company at its expense will execute and deliver, in lieu thereof, a
new Protective Warrant of like tenor.

         SECTION 10. NOTICES. Any notices required or permitted to be given
under the terms of this Warrant shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier or by confirmed
telecopy, and shall be effective five days after being placed in the mail, if
mailed, or upon receipt or refusal of receipt, if delivered personally or by
courier, or by confirmed telecopy, in each case addressed to a party. The
addresses for such communications shall be:

         If to the Company:

                 Franklin Telecommunications Corp.
                 733 Lakefield Road
                 Westlake Village, CA 91361
                 Telephone No.: (805) 373-8688
                 Facsimile No.: 805-373-7373

         If to the holder, at such address as such holder shall have provided in
writing to the Company, or at such other address as such holder furnishes by
notice given in accordance with this Section 10.

         SECTION 11. GOVERNING LAW; JURISDICTION. This Warrant shall be governed
by and construed in accordance with the laws of the State of California
applicable to contracts made and to be performed in the State of California.

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         SECTION 12. MISCELLANEOUS.

             12.1 Amendments. This Warrant and any provision hereof may only be
amended by an instrument in writing signed by the Company and the holder hereof.

             12.2 Descriptive Headings. The descriptive headings of the several
Sections of this Warrant are inserted for purposes of reference only, and shall
not affect the meaning or construction of any of the provisions hereof.

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

                                             Franklin Telecommunications Corp.

Date: March 16, 2000                         By:
                                                 -------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

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<PAGE>   9

                       EXHIBIT A TO THE PROTECTIVE WARRANT

                                  EXERCISE FORM

                        FRANKLIN TELECOMMUNICATIONS CORP.

         THE UNDERSIGNED (THE "REGISTERED HOLDER") HEREBY IRREVOCABLY EXERCISES
THE RIGHT TO PURCHASE __________________ SHARES OF COMMON STOCK OF FRANKLIN
TELECOMMUNICATIONS CORP., A CALIFORNIA CORPORATION (THE "COMPANY"), EVIDENCED BY
THE ATTACHED PROTECTIVE WARRANT, AND HEREWITH MAKES PAYMENT OF THE EXERCISE
PRICE WITH RESPECT TO SUCH SHARES IN FULL IN THE FORM OF (CHECK THE APPROPRIATE
BOX) (I) CASH OR CERTIFIED CHECK IN THE AMOUNT OF $________; (II) WIRE TRANSFER
TO THE COMPANY'S ACCOUNT; OR (III) THROUGH THE "CASHLESS EXERCISE" PROVISIONS
THEREOF.

         THE UNDERSIGNED REQUESTS THAT STOCK CERTIFICATES FOR SUCH PROTECTIVE
WARRANT SHARES BE ISSUED, AND A PROTECTIVE WARRANT REPRESENTING ANY UNEXERCISED
PORTION HEREOF BE ISSUED, PURSUANT TO THIS PROTECTIVE WARRANT IN THE NAME OF THE
REGISTERED HOLDER AND DELIVERED TO THE UNDERSIGNED AT THE ADDRESS SET FORTH
BELOW.

         DATED:

         SIGNATURE OF REGISTERED HOLDER

         NAME OF REGISTERED HOLDER (PRINT)

         ADDRESS

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                                     NOTICE

         THE SIGNATURE TO THE FOREGOING EXERCISE FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THE ATTACHED PROTECTIVE WARRANT IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER.<PAGE>   1
                                                                    EXHIBIT 10.4

         THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
         NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
         THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
         JURISDICTION. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED OR
         SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
         SECURITIES UNDER APPLICABLE SECURITIES LAWS UNLESS OFFERED, SOLD OR
         TRANSFERRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THOSE LAWS.

                        FRANKLIN TELECOMMUNICATIONS CORP.

                                  TERM WARRANT

         THIS CERTIFIES THAT, for value received, ____________, or registered
assigns ("Holder"), is entitled to purchase from Franklin Telecommunications
Corp., a California corporation (the "Company"), at any time or from time to
time during the Exercise Period specified in Section 2 hereof, ____________
(_______ ) fully paid and nonassessable shares of the Company's Common Stock,
without par value (the "Common Stock"), at an exercise price (the "Exercise
Price") of $2.50 per share, subject to adjustment as provided herein. The
number of shares of Common Stock purchasable hereunder (the "Warrant Shares")
and the Exercise Price are subject to adjustment as provided in Section 4
hereof. The term "Warrants" means this Warrant, and any warrants issued in
replacement hereof, issued pursuant to a Securities Purchase Agreement, dated
as of March 16, 2000, by and between the Company and Holder (the "Securities
Purchase Agreement").

         This Warrant is subject to the following terms, provisions and
conditions:

         1. Manner of Exercise; Issuance of Certificates; Payment for Shares.
Subject to the provisions hereof, including, without limitation, the limitations
contained in Section 7 hereof, this Warrant may be exercised at any time during
the Exercise Period (as defined below) by the holder hereof, in whole or in
part, by the surrender of this Warrant, together with a completed exercise
agreement in the form attached hereto (the "Exercise Agreement"), to the Company
by 5:00 p.m. California time on any business day at the Company's principal
executive offices (or such other office or agency of the Company as it may
designate by notice to the holder hereof) and payment to the Company in cash, by
certified or official bank check or by wire transfer for the account of the
Company, of the Exercise Price for the Warrant Shares specified in the Exercise
Agreement. The Warrant Shares so purchased shall be deemed to be issued to the
holder hereof or such holder's designee, as the record owner of such shares, as
of the close of business on the date on which this Warrant shall have been
surrendered and the completed Exercise Agreement shall have been delivered and
payment shall have been made for such shares as set forth above or, if such day
is not a business day, on the next succeeding business day. The Warrant Shares
so purchased, representing the aggregate number of shares specified in the
Exercise Agreement, shall be delivered to the holder hereof within seven
business days after this Warrant shall have been so exercised (the "Delivery
Period"). If the Company's transfer agent is participating in the Depository
Trust Company ("DTC") Fast Automated Securities Transfer program, and so long as
the certificates therefor do not bear a legend and the holder is not obligated
to return such certificate for the placement of a legend thereon,

<PAGE>   2

the Company shall cause its transfer agent to electronically transmit the
Warrant Shares so purchased to the holder by crediting the account of the holder
or its nominee with DTC through its Deposit Withdrawal Agent Commission system
("DTC Transfer"). If the aforementioned conditions to a DTC Transfer are not
satisfied, the Company shall deliver to the holder physical certificates
representing the Warrant Shares so purchased. Further, the holder may instruct
the Company to deliver to the holder physical certificates representing the
Warrant Shares so purchased in lieu of delivering such shares by way of DTC
Transfer. Any certificates so delivered shall be in such denominations as may be
requested by the holder hereof, shall be registered in the name of such holder
or such other name as shall be designated by such holder and, following the date
on which the Warrant Shares have been registered under the Securities Act
pursuant to that certain Registration Rights Agreement, dated as of March 16,
2000, by and between the Company and Holder (the "Registration Rights
Agreement") or otherwise may be sold by the holder pursuant to Rule 144
promulgated under the Securities Act (or a successor rule), shall not bear any
restrictive legend. If this Warrant shall have been exercised only in part,
then, unless this Warrant has expired, the Company shall, at its expense, at the
time of delivery of such certificates, deliver to the holder a new Warrant
representing the number of shares with respect to which this Warrant shall not
then have been exercised.

         2. Period of Exercise. This Warrant may be exercised at any time or
from time to time during the period (the "Exercise Period") beginning on (a)
March 16, 2001 and ending (b) at 5:00 p.m., California time, on March 15, 2005.

         3. Certain Agreements of the Company. The Company hereby covenants and
agrees as follows:

            3.1 Shares to be Fully Paid. All Warrant Shares will, upon issuance
in accordance with the terms of this Warrant, be validly issued, fully paid and
nonassessable and free from all taxes, liens, claims and encumbrances.

            3.2 Reservation of Shares. During the period beginning on the date
of initial issuance hereof and ending upon the expiration of the Exercise
Period, the Company shall at all times have authorized, and reserved for the
purpose of issuance upon exercise of this Warrant, a sufficient number of shares
of Common Stock to provide for the exercise in full of this Warrant.

            3.3 Listing. The Company shall secure the listing of the shares of
Common Stock issuable upon exercise of this Warrant upon the American Stock
Exchange and each national securities exchange or automated quotation system, if
any, upon which shares of Common Stock are then listed or become listed (subject
to official notice of issuance upon exercise of this Warrant) and shall
maintain, so long as any other shares of Common Stock shall be so listed, such
listing of all shares of Common Stock from time to time issuable upon the
exercise of this Warrant; and the Company shall so list on each national
securities exchange or automated quotation system, as the case may be, and shall
maintain such listing of, any other shares of capital stock of the Company
issuable upon the exercise of this Warrant if and so long as any shares of the
same class shall be listed on such national securities exchange or automated
quotation system.

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<PAGE>   3

            3.4 Certain Actions Prohibited. The Company will not, by amendment
of its charter or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issuance or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the economic benefit inuring to the holder hereof
and the exercise privilege of the holder of this Warrant against dilution or
other impairment, consistent with the tenor and purpose of this Warrant.

            3.5 Successors and Assigns. This Warrant will be binding upon any
entity succeeding to the Company by merger, consolidation, or acquisition of all
or substantially all of the Company's assets.

         4. Adjustments to Exercise Price The Exercise Price shall be subject to
adjustment from time to time as follows:

            4.1 Stock Splits In the event the Company should at any time or from
time to time fix a record date for the effectuation of a split or subdivision of
the outstanding shares of Common Stock or the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in additional
shares of Common Stock or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly, additional
shares of Common Stock (hereinafter referred to as "Common Stock Equivalents")
without payment of any consideration by such holder for the additional shares of
Common Stock or the Common Stock Equivalents (including the additional shares of
Common Stock issuable upon conversion or exercise thereof), then, as of such
record date (or the date of such dividend distribution, split or subdivision if
no record date is fixed), the Exercise Price shall be appropriately decreased so
that the number of shares of Common Stock issuable on exercise hereof shall be
increased in proportion to such increase of the aggregate of shares of Common
Stock outstanding.

            4.2 Reverse Stock Splits. If the number of outstanding shares of
Common Stock is decreased by a combination of the outstanding shares of Common
Stock, then, following the record date of such combination, the Exercise Price
shall be appropriately increased so that the number of shares of Common Stock
issuable on exercise hereof shall be decreased in proportion to such decrease in
outstanding shares.

            4.3 Recapitalizations If at any time or from time to time there
shall be a recapitalization of the Common Stock, provision shall be made so that
the holder hereof shall thereafter be entitled to receive upon exercise of this
Warrant the number of shares of stock or other securities or property of the
Company or otherwise, to which a holder of Common Stock deliverable upon
exercise would have been entitled on such recapitalization. In any such case,
appropriate adjustment shall be made in the application of the provisions of
this paragraph with respect to the rights of the holder hereof after the
recapitalization to the end that the provisions of this paragraph (including
adjustment of the Exercise Price then in effect and the number of shares
purchasable upon exercise hereof) shall be applicable after that event as nearly
equivalent as may be practicable.

            4.4 Distribution of Assets. In case the Company shall declare or
make any distribution of its assets (or rights to acquire its assets) to holders
of Common Stock as a partial liquidating dividend, stock repurchase, by way of
return of capital or otherwise (including any dividend or distribution to the
Company's shareholders of cash or shares (or rights to acquire shares)

                                       3

<PAGE>   4

of capital stock of a subsidiary) (a "Distribution"), then, upon exercise of
this Warrant for the purchase of any or all of the shares of Common Stock
subject hereto, the holder of this Warrant shall be entitled to receive its
pro-rata amount of such assets (or such rights) as would have been payable to
the holder had such holder been the holder of such shares of Common Stock on the
record date for the determination of shareholders entitled to such Distribution.

            4.5 Notice of Adjustment. Upon the occurrence of any event which
requires any adjustment of the Exercise Price, then, and in each such case, the
Company shall give notice thereof to the holder of this Warrant, which notice
shall state the Exercise Price resulting from such adjustment and the increase
or decrease in the number of Warrant Shares issuable upon exercise of this
Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based. Such calculation shall be certified
by the chief financial officer of the Company.

         5. No Rights or Liabilities as a Shareholder. This Warrant shall not
entitle the holder hereof to any voting rights or other rights as a shareholder
of the Company. No provision of this Warrant, in the absence of affirmative
action by the holder hereof to purchase Warrant Shares, and no mere enumeration
herein of the rights or privileges of the holder hereof, shall give rise to any
liability of such holder for the Exercise Price or as a shareholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

         6. Transfer, Exchange, Redemption and Replacement of Warrant.

            6.1 Restriction on Transfer. This Warrant and the rights granted to
the holder hereof are transferable, in whole or in part, upon surrender of this
Warrant, together with a properly executed assignment in the form attached
hereto, at the office or agency of the Company, provided, however, that any
transfer or assignment shall be subject to the conditions set forth in this
Section 6 and to the provisions of the Securities Purchase Agreement. Until due
presentment for registration of transfer on the books of the Company, the
Company may treat the registered holder hereof as the owner and holder hereof
for all purposes, and the Company shall not be affected by any notice to the
contrary. Notwithstanding anything to the contrary contained herein, the
registration rights described in Section 7 hereof are assignable only in
accordance with the provisions of the Registration Rights Agreement.

            6.2 Warrant Exchangeable for Different Denominations. This Warrant
is exchangeable, upon the surrender hereof by the holder hereof at the offices
of the, for new Warrants of like tenor of different denominations representing
in the aggregate the right to purchase the number of shares of Common Stock
which may be purchased hereunder, each of such new Warrants to represent the
right to purchase such number of shares as shall be designated by the holder
hereof at the time of such surrender.

            6.3 Replacement of Warrant. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction, or mutilation of
this Warrant and, in the case of any such loss, theft, or destruction, upon
delivery of an indemnity agreement reasonably satisfactory in form and amount to
the Company, or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant, the Company, at its expense, will execute and
deliver, in lieu thereof, a new Warrant of like tenor.

                                       4

<PAGE>   5

            6.4 Cancellation; Payment of Expenses. Upon the surrender of this
Warrant in connection with any transfer, exchange, or replacement as provided in
this Section 6, this Warrant shall be promptly canceled by the Company. The
Company shall pay all taxes (other than securities transfer taxes) and all other
expenses (other than legal expenses, if any, incurred by the Holder or
transferees) and charges payable in connection with the preparation, execution,
and delivery of Warrants pursuant to this Section 6. The Company shall indemnify
and reimburse the holder of this Warrant for all losses and damages arising as a
result of or related to any breach by the Company of the terms of this Warrant,
including costs and expenses (including legal fees) incurred by such holder in
connection with the enforcement of its rights hereunder.

            6.5 Warrant Register. The Company shall maintain, at its principal
executive offices (or such other office or agency of the Company as it may
designate by notice to the holder hereof), a register for this Warrant, in which
the Company shall record the name and address of the person in whose name this
Warrant has been issued, as well as the name and address of each transferee and
each prior owner of this Warrant.

            6.6 Exercise or Transfer Without Registration. If, at the time of
the surrender of this Warrant in connection with any exercise, transfer, or
exchange of this Warrant, this Warrant (or, in the case of any exercise, the
Warrant Shares issuable hereunder), shall not be registered under the Securities
Act and under applicable state securities or blue sky laws, the Company may
require, as a condition of allowing such exercise, transfer, or exchange, (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 exercise, transfer, or exchange 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 reasonably
acceptable to the Company and (iii) that the transferee be an "accredited
investor" as defined in Rule 501(a) promulgated under the Securities Act;
provided that no such opinion, letter, or status as an "accredited investor"
shall be required in connection with a transfer pursuant to Rule 144 under the
Securities Act.

         7. Notices. Any notices required or permitted to be given under the
terms of this Warrant shall be sent by certified or registered mail (return
receipt requested) or delivered personally or by courier or by confirmed
telecopy, and shall be effective five days after being placed in the mail, if
mailed, or upon receipt or refusal of receipt, if delivered personally or by
courier, or by confirmed telecopy, in each case addressed to a party. The
addresses for such communications shall be:

                If to the Company:

                Franklin Telecommunications Corp.
                733 Lakefield Road
                Westlake Village, CA 91361
                Telephone No.: (805) 373-8688
                Facsimile No.: 805-373-7373

If to the holder, at such address as such holder shall have provided in writing
to the Company, or at such other address as such holder furnishes by notice
given in accordance with this Section 9.

                                       5

<PAGE>   6

         8. Governing Law; Jurisdiction. This Warrant shall be governed by and
construed in accordance with the laws of the State of California applicable to
contracts made and to be performed in the State of California.

         9. Miscellaneous.

            9.1 Amendments. This Warrant and any provision hereof may only be
amended by an instrument in writing signed by the Company and the holder hereof.

            9.2 Descriptive Headings. The descriptive headings of the several
Sections of this Warrant are inserted for purposes of reference only, and shall
not affect the meaning or construction of any of the provisions hereof.

            9.3 Business Day. For purposes of this Warrant, the term "business
day" means any day, other than a Saturday or Sunday or a day on which banking
institutions in the State of New York are authorized or obligated by law,
regulation or executive order to close.

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

                                             Franklin Telecommunications Corp.

Date: March 16, 2000                         By:
                                                 -------------------------------
                                                 Name:
                                                       -------------------------
                                                 Title:
                                                       -------------------------

                                       6

<PAGE>   7

                           FORM OF EXERCISE AGREEMENT

         (TO BE EXECUTED BY THE HOLDER IN ORDER TO EXERCISE THE WARRANT)

To: Franklin Telecommunications Corp.
    733 Lakefield Road
    Westlake Village, CA 91361
    Telephone No.: (805) 373-8688
    Facsimile No.: (805) 373-7373

         The undersigned hereby irrevocably exercises the right to purchase
__________ shares of the Common Stock of Franklin Telecommunications Corp., a
California corporation (the "Company"), evidenced by the attached Warrant and
herewith makes payment of the Exercise Price with respect to such shares in
full, all in accordance with the conditions and provisions of said Warrant.

         The undersigned agrees not to offer, sell, transfer or otherwise
dispose of any Common Stock obtained on exercise of the Warrant, except under
circumstances that will not result in a violation of the Securities Act of 1933,
as amended, or any state securities laws.

[ ] The undersigned requests that the Company cause its transfer agent to
    electronically transmit the Common Stock issuable pursuant to this Exercise
    Agreement to the account of the undersigned or its nominee (which is
    _________________) with DTC through its Deposit Withdrawal Agent Commission
    System ("DTC TRANSFER").

[ ] In lieu of receiving the shares of Common Stock issuable pursuant to this
    Exercise Agreement by way of DTC Transfer, the undersigned hereby requests
    that the Company cause its transfer agent to issue and deliver to the
    undersigned physical certificates representing such shares of Common Stock.

         The undersigned requests that a Warrant representing any unexercised
portion hereof be issued, pursuant to the Warrant, in the name of the Holder and
delivered to the undersigned at the address set forth below:

Dated:
       --------------------                 ------------------------------------
                                            Signature of Holder

                                            ------------------------------------
                                            Name of Holder (Print)

                                            Address:

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

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

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

<PAGE>   8

                               FORM OF ASSIGNMENT

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers all the rights of the undersigned under the attached Warrant, with
respect to the number of shares of Common Stock covered thereby set forth
hereinbelow, to:

Name of Assignee                    Address                         No of Shares
----------------                    -------                         ------------

, and hereby irrevocably constitutes and appoints ______________________________
as agent and attorney-in-fact to transfer said Warrant on the books of the
within-named corporation, with full power of substitution in the premises.

Dated: _____________________, ____

In the presence of

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

                                        Name:
                                              ----------------------------------

                                              Signature:
                                                         -----------------------
                                              Title of Signing Officer or Agent
                                              (if any):

                                                       -------------------------
                                              Address:
                                                       -------------------------

                                                       -------------------------
                                              Note: The above signature should
                                                    correspond exactly with the
                                                    name on the face of the
                                                    within Warrant.

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