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                                                                   EXHIBIT 4(c)

                                 FORM OF DEBENTURE

THESE SECURITIES (INCLUDING ANY UNDERLYING SECURITIES) HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION SHALL NO LONGER BE REQUIRED.

                                CLEARWORKS.NET, INC.
                             6% CONVERTIBLE DEBENTURE

$3,000,000                                                     DECEMBER 13, 1999
New York, New York

          1.   CONSIDERATION.  FOR VALUE RECEIVED, CLEARWORKS.NET, INC. a
Delaware corporation (the "undersigned" or the "Company"), hereby promises to
pay to the order of Candlelight Investors LLC, at its offices located at One
World Trade Center, Suite #4563, New York, New York 10048 or at such other
place as the holder hereof (the "holder" or the "Registered Holder") shall
designate to the undersigned in writing, in lawful money of the United States of
America or in New York Clearing House Funds, the principal amount of Three
Million Dollars on the Maturity Date (as defined below).  The undersigned
promises to pay the said principal sum in accordance with the terms of this
Debenture (as defined below).

          2.   PAYMENT.   On December 13, 2001 (the "Maturity Date") the
undersigned shall pay the holder all unpaid principal and interest, if any, on
this Debenture.  At the Company's option, any interest payment required to be
paid on this Debenture may be made in the form of the issuance to the holder of
the Company's common stock, par value $.001 per share (the "Common Stock"), with
the number of shares of such Common Stock to be payable in lieu of such interest
payments to be determined in accordance with the provisions of Section 6, as if
such interest payment were a portion of the principal amount of the Debenture to
be converted into Common Stock.

          Principal and interest shall be payable at the most recent address as
the Registered Holder shall have designated to the Company in writing.  No
payment of the principal of this Debenture may be made prior to the Maturity
Date by the Company without the consent of the Registered Holder, except as
otherwise provided herein.

          3.   OVERDUE INTEREST PAYMENTS.  Interest on the indebtedness
evidenced by

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this Debenture after default or maturity accelerated or otherwise shall be
due and payable at the rate of ten (10%) percent per annum, subject to the
limitations of applicable law.

          4.   HOLIDAYS.  If this Debenture or any installment hereof becomes
due and payable on a Saturday, Sunday or public holiday under the laws of the
State of New York and the State of Texas, the due date hereof shall be extended
to the next succeeding business day and interest shall be payable at the rate of
six (6%) percent per annum during such extension.  All payments received by the
holder shall be applied first to the payment of all accrued interest payable
hereunder.

          5.   ISSUANCE OF DEBENTURES.  This Debenture has been issued by the
Company pursuant to the authorization of the Board of Directors of the Company
(the "Board") and issued pursuant to a Securities Purchase Agreement, dated as
of December 13, 1999, by and between the Company and the Purchaser identified
therein (the "Securities Purchase Agreement").  Pursuant to the Securities
Purchase Agreement, the Company issued $3,000,000 principal amount of the
Debentures and warrants to purchase (the "Warrants") 210,000 shares of the
Company's Common Stock.  The Securities Purchase Agreement contains certain
additional terms that are binding upon the Company and each Registered Holder of
the Debentures.  A copy of the Securities Purchase Agreement may be obtained by
any registered holder of the Debentures from the Company upon written request.
Capitalized terms used but not defined herein shall have the meanings set forth
in the Securities Purchase Agreement, including the Exhibits thereto. This
Debenture  and the other 6% Convertible Debentures due 2001 issued by the
Company pursuant to the terms of the Securities Purchase Agreement, together
with any debentures from time to time issued in replacement thereof, whether
pursuant to transfer and assignment, partial conversion thereof or otherwise,
are collectively referred to herein as the "Debentures."

          6.   CONVERSION.  (a) Subject to and in compliance with the provisions
hereof, the holder shall have the right to convert all or a portion of the
outstanding principal amount of this Debenture into such number of shares of
Common Stock (the shares of Common Stock issuable upon conversion of, and
issuable in lieu of interest payments on, this Debenture, if any, are
hereinafter referred to as the "Conversion Shares") as shall equal the quotient
obtained by dividing (x) the principal amount of this Debenture to be converted
by (y) the Applicable Conversion Price (as hereinafter defined) and by surrender
of this Debenture, such surrender to be made in the manner provided herein.

               (b)  For purposes hereof the term "Applicable Conversion Price"
shall mean the lesser of: (i) three dollars thirty cents ($3.30) (the "Fixed
Price") or (ii) the product obtained by multiplying (x) the Average Lowest
Closing Price (as hereinafter defined) by (y) .92; provided, however, if on the
Notice Date (as defined below) the closing bid price for the Common Stock is
less than one dollar and fifty cent ($1.50) per share, the Applicable Conversion
Price shall be the Average Lowest Closing Price.

               For purposes hereof the "Average Lowest Closing Price" with
respect to any conversion elected to be made by the holder shall be the average
of the three (3) lowest daily

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closing bid prices (each such price is referred to individually as a
"Floating Reference Price" and, collectively, as the "Floating Reference
Prices") during the thirty (30) trading days immediately preceding the date
on which the holder gives the Company a written notice of the holder's
election to convert outstanding principal of this Debenture (the "Notice
Date"). The closing bid price on any trading day shall be (a) if the Common
Stock is then listed or quoted on either the NASD Bulletin Board, the NASDAQ
SmallCap Market or the NASDAQ National Market, the reported closing bid price
for the Common Stock as reported by Bloomberg, L.P. ("Bloomberg") or The Wall
Street Journal (the "Journal") or on such day (or, if not so reported, as
otherwise reported by The NASDAQ Small Cap Market, NASDAQ National Market or
the NASD Bulletin Board, as the case may be), (b) if the Common Stock is
listed on either the American Stock Exchange or New York Stock Exchange, the
closing bid price for the Common Stock on such exchange on such day as
reported by Bloomberg or the Journal or (c) if neither (a) nor (b) apply but
the Common Stock is quoted in the over-the-counter market, another recognized
exchange, or on the pink sheets, the last reported bid price thereof on such
date.  If the prices of the Common Stock cannot be calculated on such date on
any of the foregoing bases, such prices on such date shall be the fair market
value as mutually determined by the Company and the Registered Holder for
which the calculation is required in order to determine the Applicable
Conversion Price; PROVIDED, HOWEVER, that if the Company and the Registered
Holder are unable to mutually determine the fair market value, such fair
market value shall be determined by a nationally recognized investment
banking firm or firm of independent chartered accountants of recognized
standing (which firm may be the firm that regularly examines the financial
statements of the Company) (an "Appraiser") selected in good faith by the
Board and holders of a majority in interest of the Debentures. "Trading day"
shall mean any day on which the Company's Common Stock is traded for any
period on the principal securities exchange or other securities market on
which the Common Stock is then being traded.

               (c)  If, during any period following December 13, 1999 (the
"Original Issue Date"), as a result of the occurrence of any of the events set
forth in Section 3(f) or 3(g) of the Registration Rights Agreement, dated as of
December 13, 1999, by and between the Company and the Purchasers set forth
therein (the "Registration Rights Agreement"), the Purchasers set forth therein
are not able to sell shares of Common Stock issuable upon conversion of, or in
lieu of interest payments on, this Debenture pursuant to a registration
statement filed pursuant to such agreement, the Registered Holder shall have the
right, for any purpose under this Debenture during such period and thereafter,
to designate as the Applicable Conversion Price any Conversion Price that would
have been applicable during such period had the Registered Holder delivered a
Notice of Conversion with respect to any portion of this Debenture.  "Conversion
Date" shall have the meaning given such term in Section 5(b) of the Securities
Purchase Agreement.

               (d)  The Registered Holder shall convert this Debenture in
accordance with Section 5(b) of the Securities Purchase Agreement.  If the
Company fails to deliver to the holder a certificate or certificates for shares
of Common Stock in the period set forth in the Securities Purchase Agreement,
the Company shall make certain payments to the holder in accordance with Section
5(d) of the Securities Purchase Agreement.

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               (e)  If the entire outstanding principal amount of this Debenture
is not converted, the Company shall also issue and deliver to such holder a new
Debenture of like tenor in the principal amount equal to the principal which was
not converted and dated the Original Issue Date. Each conversion shall be deemed
to have been effected immediately prior to the close of business on the date on
which a Notice of Conversion shall have been delivered as aforesaid, and the
person or persons in whose name or names any certificate of certificates for
shares of Common Stock shall be issuable upon such conversion shall be deemed to
have become the holder or holders of record of the shares represented thereby at
such time on such date.

               (f)  All shares of Common Stock delivered upon conversion of, or
in lieu of interest payments on, this Debenture will, upon delivery, be duly
authorized, validly issued and fully paid and nonassessable.

               (g)  No fractional shares of Common Stock shall be issued upon
conversion of, or in lieu of interest payments on, this Debenture. Instead of
any fractional share of Common Stock which would otherwise be deliverable upon
the conversion of, or in lieu of interest  payments on, the principal of this
Debenture, the Company shall pay to the holder an amount in cash (computed to
the nearest cent) equal to the Average Closing Price multiplied by the fraction
of a share of Common Stock represented by such fractional interest.

               (h)  The issuance of certificates for shares of Common Stock upon
any conversion of, or in lieu of interest payments on, this Debenture shall be
made without charge to the payee hereof for any tax or other expense in respect
to the issuance of such certificates, all of which taxes and expenses shall be
paid by the Company, and such certificates shall be issued only in the name of
the registered holder of this Debenture.

               (i)  Notwithstanding anything herein to the contrary, at no
time shall the Registered Holder (including its officers, directors and
affiliates) maintain in the aggregate beneficial ownership (as defined for
purposes of Section 16 of the Securities Exchange Act of 1934, as amended) of
shares of Common Stock in excess of 4.9% of the Company's outstanding Common
Stock and accordingly, the Registered Holder may only convert this Debenture
up to the point where its aggregate beneficial ownership (as defined for
purposes of Section 16 of the Securities Exchange Act of 1934, as amended) of
shares of Common Stock is equal or less than 4.9% of the Company's
outstanding Common Stock.

          7.   REDEMPTION BY COMPANY.  (a) If, after the Original Issue Date,
there shall occur a Change in Control of the Company (as defined below), then,
at the option of the Registered Holder, the Company shall, on the effective date
of and subject to the consummation of such Change in Control, redeem this
Debenture for cash from the Registered Holder at a redemption price equal to
125% of the aggregate principal and accrued interest outstanding under this
Debenture.  Nothing in this subsection shall limit the Registered Holder's right
to convert this Debenture on or prior to such Change in Control.  For purposes
hereof, a "Change in Control" shall be deemed to have occurred if (A) any person
or group (as defined for purposes of Regulation 13D of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")) shall

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have become the beneficial owner or owners of more than 50% of the
outstanding voting stock of the Company; (B) there shall have occurred a
merger or consolidation in which the Company or an affiliate of the Company
is not the survivor or in which holders of the Common Stock of the Company
shall have become entitled to receive cash, securities of the Company other
than voting common stock or securities of any other person; (C) at any time
persons constituting the Existing Board of Directors cease for any reason
whatsoever to constitute at least a majority of the members of the Board of
Directors of the Company; or (D) there shall have occurred a sale of all or
substantially all the assets of the Company.  For purposes hereof, the term
"Existing Board of Directors" shall mean the persons constituting the Board
of Directors of the Company on the date hereof, together with each new
director whose election, or nomination for election by the Company's
stockholders is approved by a vote of the majority of the members of the
Existing Board of Directors who are in office immediately prior to the
election or nomination of such director.

          (b)  In the event that the Company is subject to Nasdaq Rule 4310 or
4460, if  prior to the time the stockholders of the Company shall have approved
the transactions contemplated by the Securities Purchase Agreement as provided
in clause (B) below, the number of shares of Common Stock issued (i) upon
conversion of the Debentures and (ii) in lieu of interest payments on the
Debentures, if any, (collectively, the "Conversion Shares"), shall be equal to
or more than 19.9% of the number of the shares of capital stock outstanding on
the Initial Closing Date (a "Redemption Event"), the Company shall have the
option to (A) redeem the outstanding principal amount of this Debenture at the
redemption price of one hundred twenty-five percent (125%) of the principal
amount hereof plus accrued interest on this Debenture, if any, or (B) call a
special meeting of its stockholders for the purpose of approving the
transactions contemplated by the Securities Purchase Agreement, including the
issuance of the Debentures and Warrants on the terms set forth therein, together
with any other approvals that shall be required so as to cause the transactions
contemplated by the Securities Purchase Agreement to remain in compliance with
the Rules and Regulations of Nasdaq (including Rule 4460 of Nasdaq's
Non-Qualitative Designation Criteria on the occurrence of a Redemption Event;
such approvals are referred to herein as the "Required Approvals").  The
Company shall determine within five (5) business days following the
occurrence of any Redemption Event which of such actions it shall take, and
shall promptly furnish notice to the Purchaser as to such determination,
including, if applicable, a notice of redemption.  If the Company does not
make a determination within such five (5) day period, this Debenture shall be
redeemed the first business day following the end of such five (5) day period,
if any, at the redemption price of one hundred twenty-five percent (125%) of
the principal amount hereof plus accrued interest on the Debenture, if any.

          (c)  If the Company elects to call a special meeting of its
stockholders pursuant to Section 6(b) to obtain the Required Approvals, the
Company shall obtain such Required Approvals within thirty (30) days of the
distribution of the notice described in such Section (such thirty (30) day
period is referred to herein as an "Approval Period").  If such approval is not
obtained within the Approval Period, this Debenture shall be redeemed on the
first business day following the Approval Period at the redemption price of one
hundred twenty-five percent (125%) of the principal amount hereof plus accrued
interest on the Debenture, if any.

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               (d)  If the Company fails to have a registration statement
effective within one hundred fifty (150) days of the date of the Stock Purchase
Agreement, the Company shall pay a cash penalty equal to 2% of the outstanding
Debentures per month.

               (e)  If the Company shall be required to redeem the Debentures
pursuant to any of the terms or conditions set forth in this Section 7, the
Company shall remit the redemption price to the Registered Holder thereof
immediately upon such redemption.

     8.   COVENANTS.

               (a)  The Company will pay all taxes, assessments and governmental
charges lawfully levied or assessed upon it, its property and any part thereof,
and upon its income for profits, and any part thereof, before the same shall
become delinquent; and will duly observe, and conform to, all lawful
requirements of any governmental authority relative to any of its property, and
all covenants, terms and conditions upon or under which any of its property is
held; provided that nothing in this Section shall require the Company to observe
or conform to any requirement of governmental authority so long as the validity
thereof shall be contested in good faith by appropriate proceedings or to pay
any such tax, assessment or governmental charges so long as the validity thereof
shall be contested in good faith by appropriate proceedings and adequate
reserves with respect thereto shall have been set aside on the books of the
Company.

               (b)  Subject to the other provisions of this Debenture, the
Company at all times will maintain its corporate existence and right to carry on
its business and will duly procure all necessary renewals and extensions thereof
and use its best efforts to maintain, preserve and renew all of its rights,
powers, privileges and franchises; PROVIDED, HOWEVER, that nothing herein
contained shall be construed to prevent the Company from ceasing or omitting to
exercise any rights, powers, privileges or franchises which, in the judgment of
the Board, can no longer be profitably exercised, nor to prevent the
consolidation, merger or liquidation of any subsidiary or subsidiaries of the
Company with or into the Company.

               (c)  The Company will at no time close its stock transfer books
against the transfer of any shares of Common Stock issued or issuable upon the
conversion of, or in lieu of interest payments on, the Debentures, in any manner
which interferes with the timely conversion of such Debentures.

               (d)  As used in this Debenture, the term "Common Stock" shall
include all stock of any class or classes (however designated) of the Company,
authorized on or after the date hereof, the holders of which shall have the
right, without limitation as to amount, either to all or to a share of the
balance of current dividends and liquidating dividends after the payment of
dividends and distributions on any shares entitled to preference, and the
holders of which shall ordinarily be entitled to vote for the election of the
directors of the Company.  The Company shall not, without the prior written
consent of the Registered Holder of this Debenture, issue any shares of its
capital stock, other than as permitted by Section 4(i) of the Securities
Purchase Agreement, in exchange for Debentures as provided hereunder or upon
exercise of the Warrants in accordance with the terms thereof.

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               (e)  The Company will not, by amendment of its Articles of
Incorporation or By-laws or through any reorganization, recapitalization,
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 to be observed or performed hereunder or
pursuant to the Securities Purchase Agreement by the Company, and will at all
times assist in good faith in the carrying out of all the provisions of this
Debenture and the Securities Purchase Agreement and in the taking of all such
action as may be necessary or appropriate in order to protect the conversion
rights of the Registered Holders of the Debentures against impairment.

          (f)  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 Registered Holder of the
Debentures, at least ten (10) 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.

          9.   LIMITATION ON CERTAIN CORPORATE ACTS.  The Company hereby
covenants and agrees that upon any consolidation or merger or upon the transfer
of all or substantially all of the property or assets of the Company, the due
and punctual payment of the principal and interest on all the Debentures
according to their tenor and the due and punctual performance and observance of
all the terms, covenants and conditions of the Debentures and the Securities
Purchase Agreement to be kept and performed by the Company shall be expressly
assumed by the corporation formed by such consolidation, or into which the
Company shall have merged or by the purchaser of such property or assets; and
such assumption shall be an express condition of such merger or consolidation
agreement or agreement for the transfer of property or assets.

          10.  EVENTS OF DEFAULT.  In case one or more of the following events
of default shall have occurred:

               (a)  default in the due and punctual payment of interest upon or
principal of any of the Debentures as and when the same becomes due and payable
either at maturity or otherwise; or

               (b)  failure to deliver the shares of Common Stock required to be
delivered upon conversion of, or in lieu of interest payments on, the
Debentures in the manner and at the time required by Section 5 of the Securities
Purchase Agreement; or

               (c)  failure of the Company to have authorized the number of
shares of Common Stock issuable upon conversion of, or in lieu of interest
payments on, the Debentures, or exercise of the Warrants; or

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               (d)  failure on the part of the Company to duly observe or
perform any of its other covenants or agreements contained in, or to cure any
material breach in a material representation or covenant contained in the
Securities Purchase Agreement, the Debentures or the Registration Rights
Agreement for a period of ten (10) days after the date on which written notice
of such failure or breach requiring the same to be remedied has been given by a
Registered Holder to the Company; or

               (e)  a decree or order by a court having jurisdiction has been
entered adjudging the Company (or any Material Subsidiary (as herein after
defined))  bankrupt or insolvent, or approving a petition seeking reorganization
of the Company (or any Material Subsidiary) under any applicable bankruptcy law
and such decree or order has continued undischarged or unstayed for a period of
thirty (30) days; or a decree or order of a court having jurisdiction for the
appointment of a receiver or liquidator or trustee or assignee in bankruptcy or
insolvency of the Company (or any Material Subsidiary) or of all or
substantially all of its property, or for the winding-up or liquidation of its
affairs, has been entered, and has remained in force undischarged or unstayed
for a period of thirty (30) days; or

               (f)  the Company (or any Material Subsidiary) institutes
proceedings to be adjudicated a voluntary bankrupt, or consents to the filing of
a bankruptcy proceeding against it, or files a petition or answer or consent
seeking reorganization under applicable law, or consents to the filing of any
such petition or to the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of it or of all or substantially all of its
property, or makes an assignment for the benefit of creditors, or admits in
writing its inability to pay its debts generally as they become due; or if the
Company (or any Material Subsidiary) shall suffer any writ of attachment or
execution or any similar process to be issued or levied against it or any
significant part of its property which is not released, stayed, bonded or
vacated within thirty (30) days after its issue or levy; or if the Company (or
any Material Subsidiary) takes corporate action in furtherance of any of the
aforesaid purposes or conditions; or

               (g)  if any default shall occur under any indenture, mortgage,
agreement, instrument or commitment evidencing or under which there is at the
time outstanding any indebtedness of the Company (or a Material Subsidiary), in
excess of $100,000, or which results in such indebtedness, in an aggregate
amount (with other defaulted indebtedness) in excess of $100,000 becoming due
and payable prior to its due date and if such indenture or instrument so
requires, the holder or holders thereof (or a trustee on their behalf) shall
have declared such indebtedness due and payable, provided, however, the
foregoing shall not be deemed to be an event of default while the Company is
diligently contesting such default in good faith and by appropriate proceedings
so long as (i) adequate book reserves have been established with respect thereto
in accordance with U.S. generally accepted accounting principles and (ii) until
such time that there is a foreclosure or acceleration of indebtedness under such
indenture mortgage, agreement, instrument or commitment or an action which
impairs the Company or the assets of the Company or the rights of the holder
under this Debenture; or

               (h)  if any of the Company or its subsidiaries shall default in
the observance or performance of any material term or provision of a material
agreement to which it

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is a party or by which it is bound, and such default is not waived or cured
within the applicable grace period , provided, however, the foregoing shall
not be deemed to be an event of default while the Company is diligently
contesting such default in good faith and by appropriate proceedings so long
as (i) adequate book reserves have been established with respect thereto in
accordance with U.S. generally accepted accounting principles and (ii) until
such time that there is a lien, foreclosure or acceleration of indebtedness
under such material, agreement which impairs the Company or the assets of the
Company or the rights of the holder under this Debenture; or

               (i)  if a final judgment which, either alone or together with
other outstanding final judgments against the Company and its subsidiaries,
exceeds an aggregate of $100,000 shall be rendered against the Company (or any
Material Subsidiary) and such judgment shall have continued undischarged or
unstayed for thirty (30) days after entry thereof;

then, in each and every such case other than those specified in clauses (e) and
(f) above, so long as such event of default has not been remedied and unless the
principal of all the Debentures has already become due and payable, the holder
of this Debenture, by notice in writing to the Company, may declare the
principal of this Debenture and the interest accrued thereon, if not already due
and payable, to be due and payable immediately, and upon any such declaration
the same shall become and shall be immediately due and payable, anything herein
contained to the contrary notwithstanding and, upon the occurrence of the events
specified in clauses (e) and (f) above, such principal and interest shall
automatically become and shall be due and payable immediately without any action
on the part of any holder of Debentures, anything herein contained to the
contrary notwithstanding.

               For purposes of this Section 10, "Material Subsidiary" means any
subsidiary with respect to which the Company has directly or indirectly
invested, loaned, advanced or guaranteed the obligations of, an aggregate amount
exceeding fifteen percent (15%) of the Company's gross assets, or the Company's
proportionate share of the assets or net income of which (based on the
subsidiary's most recent financial statements) exceed fifteen percent (15%) of
the Company's gross assets or net income, respectively, or the gross revenues of
which exceed fifteen percent (15%) of the gross revenues of the Company based
upon the most recent financial statements of such subsidiary and the Company.

          11.  TRANSFERABILITY.  This Debenture is transferable, in whole or in
part, only in accordance with the terms of Section 5 of the Securities Purchase
Agreement.  The Registered Holder may submit a written request, in person or by
his duly authorized attorney, for a transfer of this Debenture on the register
of the Company maintained at its principal offices.  The Company may deem and
treat the person in whose name this Debenture is registered as the absolute
owner hereof, for the purpose of receiving payment of the principal thereof and
interest hereon, whether or not the same shall be overdue, and for all other
purposes whatsoever, including but without limitation, the giving of any written
notices required hereunder, and the Company shall not be affected by any notice
to the contrary

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          12.  STOCK SPLITS; DIVIDENDS; ADJUSTMENTS; REORGANIZATIONS.

               (a)  If the Company, at any time after the Original Issue Date,
(i) shall pay a stock dividend or otherwise make a distribution or distributions
on any equity securities (including investments or securities convertible into
or exchangeable for such equity securities) in shares of Common Stock, (ii)
issue any securities payable in shares of Common Stock, (iii) subdivide the
outstanding shares of Common Stock into a larger number of shares, (iv) combine
outstanding shares of Common Stock into a smaller number of shares, the Fixed
Price and each Floating Reference Price prior to the date of any such occurrence
(collectively, the "Reference Prices") shall be multiplied by a fraction of
which the numerator shall be the number of shares of Common Stock 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 12(a) shall become effective immediately after the record date for the
determination of shareholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of
an issuance, a subdivision or a combination.

               (b)  In the event that the Company, at any time after the
Original Issue Date while the Debentures are outstanding, issues or sells any
Common Stock or securities which are convertible into or exchangeable for its
Common Stock or any convertible or exchangeable securities, or any warrants or
other rights to subscribe for or to purchase or any options for the purchase of
its Common Stock or any such convertible or exchangeable securities (other than
shares or options issued pursuant to the Company's employee or director option
plans or shares issued upon exercise of options, warrants or rights outstanding
on the date of the Securities Purchase Agreement and listed in the Company's
most recent periodic report filed under the Exchange Act) at an effective
purchase price per share which is less than the Fixed Price then in effect, then
the Fixed Price in effect immediately prior to such issue or sale shall be
reduced effective concurrently with such issue or sale to an amount determined
by multiplying such Fixed Price then in effect by a fraction, (x) the numerator
of which shall be the sum of (1) the number of shares of Common Stock
outstanding immediately prior to such issue or sale, plus (2) the number of
shares of Common Stock which the aggregate consideration received by the Company
for such additional shares would purchase at such Fixed Price then in effect;
and (y) the denominator of which shall be the number of shares of Common Stock
of the Company outstanding immediately after such issue or sale.

               For the purposes of the foregoing adjustment, in the case of the
issuance of any convertible or exchangeable securities, warrants, options or
other rights to subscribe for or to purchase or exchange for, shares of Common
Stock ("Exchangeable Securities"),  the maximum number of shares of Common Stock
issuable upon exercise, conversion or exchange of such Exchangeable Securities
shall be deemed to be outstanding, provided that no further adjustment shall be
made upon the actual issuance of Common Stock upon exercise, exchange or
conversion of such Exchangeable Securities.

               (c)  If the Company, at any time after the Original Issue Date
while the Debentures are outstanding, shall distribute to all holders of Shares
of Common Stock evidences of its indebtedness or assets or rights or warrants to
subscribe for or purchase any security

                                      10
<PAGE>

(excluding those referred to in Section 12(b) above) then in each such case
the Fixed Price thereafter shall be determined by multiplying the Fixed Price
in effect immediately prior to the record date fixed for determination of
shareholders entitled to receive such distribution by a fraction of which the
denominator shall be the Market Price for Shares of Common Stock (as defined
below) determined as of the record date mentioned above, and of which the
numerator shall be such Market Price for Shares of Common Stock on such
record date less the then fair market value at such record date of the
portion of such assets or evidences of indebtedness so distributed applicable
to one outstanding share of Common Stock as determined by the Board in good
faith; PROVIDED, however that in the event of a distribution exceeding 25% of
the net assets of the Company, such fair market value shall be determined by
an Appraiser selected in good faith by the Board and holders of a majority in
interest of the Debentures.  In either case the adjustments shall be
described in a statement provided to all holders of Debentures of the portion
of assets or evidences of indebtedness so distributed or such subscription
rights applicable to one outstanding 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.

               "Market Price for Shares of Common Stock" shall mean the price of
one share of Common Stock determined as follows:

                    (i)    If the Common Stock is then listed or quoted on
either the NASD Bulletin Board, the NASDAQ SmallCap Market or the NASDAQ
National Market, the reported closing bid price for the Common Stock as reported
by Bloomberg or the Journal on such day (or, if not so reported, as otherwise
reported by The NASDAQ Small Cap Market, NASDAQ National Market or the NASD
Bulletin Board, as the case may be);

                    (ii)   If the Common Stock is listed on the New York Stock
Exchange or the American Stock Exchange, the closing bid price for the Common
Stock on such exchange on such day as reported by Bloomberg or the Journal;

                    (iii)  If neither (i) nor (ii) apply but the Common Stock is
quoted in the over-the-counter market, another recognized exchange or on the
pink sheets, the last reported bid price thereof on such date; and

                    (iv)   If neither clause (i), (ii) or (iii) above applies,
the market value as determined by a nationally recognized investment banking
firm or other nationally recognized financial advisor retained by the Company
for such purpose, taking into consideration, among other factors, the earnings
history, book value and prospects for the Company, and the prices at which
shares of Common Stock recently have been traded.  Such determination shall be
conclusive and binding on all persons.

               (d)  (1) In the event that at any time or from time to time after
the Original Issue Date,  the Common Stock issuable upon the conversion of, or
in lieu of interest payments on,  the Debentures is changed into the same or a
different number of shares of any class or classes of stock, whether by merger,
consolidation, recapitalization, reclassification or

                                      11
<PAGE>

otherwise (other than a subdivision or combination of shares or stock
dividend or reorganization provided for elsewhere in this Paragraph 12), then
and as a condition to each such event provision shall be made in a manner
reasonably acceptable to the holders of Debentures so that each holder of
Debentures shall have the right thereafter to convert such Debenture into,
and to receive in lieu of interest payments, the kind of stock receivable
upon such recapitalization, reclassification or other change by holders of
shares of Common Stock, all subject to further adjustment as provided herein.
In such event, the formulae set forth herein for conversion and redemption
shall be equitably adjusted to reflect such change in number of shares or, if
shares of a new class of stock are issued, to reflect the market price of the
class or classes of stock (applying the same factors used in determining the
Fixed Price) issued in connection with the above described transaction.

                    (2)  If at any time or from time to time after the Initial
Closing Date there is a capital reorganization of the Common Stock, including by
way of a sale of all or substantially all of the assets of the Company (other
than a recapitalization, subdivision, combination, reclassification or exchange
of shares provided for elsewhere in this Paragraph 12), then, as a part of and a
condition to such reorganization, provision shall be made in a manner reasonably
acceptable to the holders of the Debentures so that the holders of the
Debentures shall thereafter be entitled to receive upon conversion of, or in
lieu of interest payments on, the Debentures the number of shares of stock or
other securities or property to which a holder of the number of shares of Common
Stock deliverable upon conversion, or in lieu of interest payments on, the
Debentures would have been entitled on such capital reorganization.  In any such
case, appropriate adjustment shall be made in the application of the provisions
of this Paragraph 12 with respect to the rights of the holders of the Debentures
after the reorganization to the end that the provisions of this Paragraph 12
shall be applicable after that event and be as nearly equivalent as may be
practicable, including, by way of illustration and not limitation, by equitably
adjusting the formulae set forth herein for conversion and redemption to reflect
the market price of the securities or property (applying the same factors used
in determining the Market Price for Shares of Common Stock) issued in connection
with the above described transaction.

               (e)  If at any time during the period ending twelve (12) months
after the Original Issue Date,  the Company sells or agrees to sell (including
pursuant to a letter of intent, term sheet, or similar means) shares of Common
Stock or securities or options convertible into, exercisable for, or
exchangeable for, shares of Common Stock (other than (i) a sale pursuant to a
bona fide registered public offering of shares of Common Stock by the Company
conducted on the basis of a firm commitment underwriting raising at least
$10,000,000 and (ii) shares or options issued pursuant to the Company's
employee, director or consultant stock option plans) then, if the effective or
maximum sales price of the shares of Common Stock with respect to such
transaction (including the effective or maximum conversion exercise or exchange
price) ("Other Price") is less than the Fixed Price of the Debentures at such
time, the Company, at the option of a holder exercised by written notice to the
Company, shall adjust the Fixed Price applicable to the Debentures of such
holder not yet converted in form and substance reasonably satisfactory to such
holder of Debentures so that the conversion price applicable to those Debentures
shall, in no event, be greater, after giving effect to all other adjustments
contained therein, than the Other Price.

                                      12
<PAGE>

               (f)  Whenever any element of the Applicable Conversion Price is
adjusted pursuant to Section 12(a), (b), (c), (d) or (e), the Company shall
promptly mail to each holder of the Debentures, a notice setting forth the
Applicable Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

               (g)  In the event of any taking by the Company of a record date
of the holders of any class of securities for the purpose of determining the
holders thereof who are entitled to receive any dividend or other distribution,
any security or right convertible or exchangeable into or entitling the holder
thereof to receive additional shares of Common Stock, or 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
deliver to each holder of Debentures at least thirty (30) 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, security or right and
the amount and character of such dividend, distribution, security or right.

          13.  REMEDIES CUMULATIVE.  The rights, powers and remedies given to
the payee under this Debenture shall be in addition to all rights, powers and
remedies given to it by virtue of the Securities Purchase Agreement, any
document or instrument executed in connection therewith, or any statute or rule
of law.

          14.  NON-WAIVER.  Any forbearance, failure or delay by the payee in
exercising any right, power or remedy under this Debenture, the Securities
Purchase Agreement, any documents or instruments executed in connection
therewith or otherwise available to the payee shall not be deemed to be a waiver
of such right, power or remedy, nor shall any single or partial exercise of any
right, power or remedy preclude the further exercise thereof.

          15.  MODIFICATIONS AND WAIVERS.  No modification or waiver of any
provision of this Debenture, the Securities Purchase Agreement or any documents
or instruments executed in connection therewith shall be effective unless it
shall be in writing and signed by the payee, and any such modification or waiver
shall apply only in the specific instance for which given.

          16.  ATTORNEY'S FEES.  If this Debenture shall not be paid when due
and shall be placed by the Registered Holder hereof in the hands of an attorney
for collection, through legal proceedings or otherwise, or if this Debenture
shall not be converted into shares of Common Stock on the Conversion Date,
subject to the provisions of Section 6 hereof, and an action is brought by the
Registered Holder with respect thereto, the Company shall pay reasonable
attorney's fees to the Registered Holder hereof, together with reasonable costs
and expenses of collection or enforcement incurred in connection with any such
action.

          17.  ENFORCEMENT; SPECIFIC PERFORMANCE.  (a)  In case any one or more
Events of Default shall occur and be continuing, a Registered Holder of a
Debenture then outstanding may proceed to protect and enforce the rights of such
holder by an action at law, suit in equity or other appropriate proceeding,
whether for the specific performance of any agreement contained herein or for an
injunction against a violation of any of the terms hereof or thereof, or

                                      13
<PAGE>

in aid of the exercise of any power granted hereby or thereby or by law.
Each holder agrees that it will give written notice to the other holders
prior to instituting any such action.

               (b)  The Company expressly agrees that each Registered Holder may
not have adequate remedies at law if the Company does not perform its
obligations under this Debenture.  Upon a breach of the terms or covenants of
this Debenture by the Company, the Registered Holder shall, each in addition to
all other remedies, be entitled to obtain injunctive relief, and an order for
specific performance of the Company's obligations hereunder.

          18.  GOVERNING LAW.  This Debenture and the rights and obligations of
the parties hereto, shall be governed, construed and interpreted according to
the laws of the State of New York.  The Company agrees that any final judgment
after exhaustion of all appeals or the expiration of time to appeal in any such
action or proceeding shall be conclusive and binding, and may be enforced in any
federal or state court in the United States by suit on the judgment or in any
other manner provided by law.  Nothing contained in this Debenture shall affect
or limit the right of the Registered Holder to serve any process or notice or
motion or other application in any other manner permitted by law, or limit or
affect the right of the Registered Holder to bring any action or proceeding
against the Company or any of its property in the courts of any other
jurisdiction.  The Company hereby consents to the jurisdiction of the federal
courts whose districts encompass any part of the City of New York or the state
courts of the State of New York sitting in the City of New York in connection
with any dispute arising under this Debenture, and hereby waives, to the maximum
extent permitted by law, any objection, including any objections based on FORUM
NON CONVENIENS, to the bringing of any such proceeding in such jurisdictions.

          19.  PAYEE DEFINED.  The term "payee" as used herein shall be deemed
to include the payee and its successors, endorsees and assigns.

          20.  WAIVER OF PRESENTMENT, ETC.  The undersigned hereby waives
presentment, demand for payment, protest, notice of protest and notice of
non-payment hereof.

          21.  HEADINGS. The headings contained in this Debenture are for
reference purposes only and shall not affect the meaning of interpretation of
this Debenture.

          22.  NOTICES.  Any notice to any party required or permitted hereunder
shall be given in writing (unless otherwise specified herein) and shall be
effective upon personal delivery, via facsimile (upon receipt of confirmation of
error-free transmission) or two business days following deposit of such notice
with an internationally recognized courier service, with postage prepaid and
addressed to such party at the address set forth in the first paragraph of this
Agreement with a copy to the Company at the address set forth below, and to the
other parties thereunto entitled at the following addresses, or at such other
addresses as a party may designate by five days advance written notice to each
of the other parties hereto.

                                      14
<PAGE>

COMPANY:              Clearworks.net, Inc.
                      2450 Fondren, Suite 200
                      Houston, Texas 77063
                      ATTENTION: Michael T. McClere, CEO
                      Tel:  (713) 334-2595
                      Fax:  (713) 334-7470

                      WITH A COPY TO:

                      Clearworks.net, Inc.
                      2450 Fondren, Suite 200
                      Houston, Texas 77063
                      ATTENTION: Celia Figueroa, Esq.
                      Tel:   (713) 334-7778
                      Fax:  (713) 334-7470

REGISTERED HOLDER:    Candlelight Investors LLC
                      c\o WEC Asset Management LLC
                      One World Trade Center, Suite #4563
                      New York, New York 10048
                      ATTENTION: Ethan Benovitz
                      Tel:  (212) 775-9299
                      Fax:  (212) 775-9311

                      WITH A COPY TO:

                      Pryor Cashman Sherman & Flynn LLP
                      410 Park Avenue
                      New York, New York 10022
                      ATTENTION: Mark Saks, Esq.
                      Tel:  (212) 326-0140
                      Fax: (212) 326-0806

          23.  AMENDMENTS AND MODIFICATION.  Changes in or additions to this
Debenture may be made, and compliance with any covenant or condition herein set
forth may be omitted only if the Company shall obtain the written consent from
the Registered Holder of this Debenture.

     [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK, SIGNATURE PAGE TO FOLLOW]

                                      15
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Debenture to be executed as
of the date first written above.

                                       CLEARWORKS.NET, INC.

                                       By:
                                          --------------------------------
                                           Name:
                                           Title:<PAGE>

                                                                   EXHIBIT 4(d)

THIS WARRANT AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE, AND MAY NOT BE TRANSFERRED IN VIOLATION OF SUCH ACT, THE RULES AND
REGULATIONS THEREUNDER OR ANY STATE SECURITIES LAWS OR THE PROVISIONS OF THIS
WARRANT.

                 No. of Shares of Common Stock:     210,000

                                  WARRANT

                         To Purchase Common Stock of

                            CLEARWORKS.NET, INC.

              THIS IS TO CERTIFY THAT Candlelight Investors LLC, a Delaware
limited liability company, or its registered assigns, is entitled, at any
time from the Warrant Issuance Date (as hereinafter defined) to the
Expiration Date (as hereinafter defined), to purchase from Clearworks.net,
Inc., a Delaware corporation (the "Company"), two hundred ten thousand
(210,000) shares of Common Stock (as hereinafter defined and subject to
adjustment as provided herein), in whole or in part, including fractional
parts, at a purchase price per share equal to three dollars sixteen cents
($3.16) (subject to any adjustments made to such amount pursuant to Section 4
hereto) on the terms and conditions and pursuant to the provisions
hereinafter set forth.

1. DEFINITIONS

              As used in this Warrant, the following terms have the respective
meanings set forth below:

              "Additional Shares of Common Stock" shall mean all shares of
Common Stock issued by the Company after the Initial Closing Date, other than
Warrant Stock.

              "Book Value" shall mean, in respect of any share of Common
Stock on any date herein specified, the consolidated book value of the
Company as of the last day of any month immediately preceding such date,
divided by the number of Fully Diluted Outstanding shares of Common Stock as
determined in accordance with GAAP (assuming the payment of the exercise
prices for such shares) by a firm of independent certified public accountants
of recognized national standing selected by the Company and reasonably
acceptable to the Holder.

              "Business Day" shall mean any day that is not a Saturday or
Sunday or a day on which banks are required or permitted to be closed in the
State of New York and State of Texas.

<PAGE>

               "Commission" shall mean the Securities and Exchange Commission
or any other federal agency then administering the Securities Act and other
federal securities laws.

              "Common Stock" shall mean (except where the context otherwise
indicates) the Common Stock, par value $.001 per share, of the Company as
constituted on the Initial Closing Date, and any capital stock into which
such Common Stock may thereafter be changed, and shall also include (i)
capital stock of the Company of any other class (regardless of how
denominated) issued to the holders of shares of Common Stock upon any
reclassification thereof which is also not preferred as to dividends or
assets over any other class of stock of the Company and which is not subject
to redemption and (ii) shares of common stock of any successor or acquiring
corporation received by or distributed to the holders of Common Stock of the
Company in the circumstances contemplated by Section 4.4.

              "Convertible Securities" shall mean evidences of indebtedness,
shares of stock or other securities which are convertible into or
exchangeable, with or without payment of additional consideration in cash or
property, for shares of Common Stock, either immediately or upon the
occurrence of a specified date or a specified event.

              "Current Warrant Price" shall mean, three dollars sixteen cents
($3.16) subject to any adjustments to such amount made in accordance with
Section 4 hereof.

               "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, or any successor federal statute, and the rules and regulations
of the Commission thereunder, all as the same shall be in effect from time to
time.

              "Exercise Period" shall mean the period during which this
Warrant is exercisable pursuant to Section 2.1.

              "Expiration Date" shall December 31, 2002.

              "Fully Diluted Outstanding" shall mean, when used with
reference to Common Stock, at any date as of which the number of shares
thereof is to be determined, all shares of Common Stock Outstanding at such
date and all shares of Common Stock issuable in respect of this Warrant,
outstanding on such date, and other options or warrants to purchase, or
securities convertible into, including without limitation the shares of
Common Stock outstanding on such date which would be deemed outstanding in
accordance with GAAP for purposes of determining book value or net income per
share.

              "GAAP" shall mean generally accepted accounting principles in
the United States of America as from time to time in effect.

              "Holder" shall mean the Person in whose name the Warrant or
Warrant Stock set forth herein is registered on the books of the Company
maintained for such purpose.

              "Initial Closing Date" shall have the meaning set forth in the
Securities Purchase Agreement.

              "Market Price" per Common Share means the average of the
closing bid prices of the Common Shares as reported on the National
Association of Securities Dealers Automated Quotation System for the National
Market, ("NASDAQ") or, if such security is not listed or admitted to trading
on the NASDAQ, on the principal national security exchange or quotation

                                       2

<PAGE>

system on which such security is quoted or listed or admitted to trading, or,
if not quoted or listed or admitted to trading on any national securities
exchange or quotation system, the closing bid price of such security on the
over-the-counter market on the day in question as reported by the National
Association of Security Dealers, Inc., or a similar generally accepted
reporting service, as the case may be, for the five (5) trading days
immediately preceding the date of determination.

              "Other Property" shall have the meaning set forth in Section 4.4.

              "Outstanding" shall mean, when used with reference to Common
Stock, at any date as of which the number of shares thereof is to be
determined, all issued shares of Common Stock, except shares then owned or
held by or for the account of the Company or any subsidiary thereof, and
shall include all shares issuable in respect of outstanding scrip or any
certificates representing fractional interests in shares of Common Stock.

              "Person" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, entity or government
(whether federal, state, county, city, municipal or otherwise, including,
without limitation, any instrumentality, division, agency, body or department
thereof).

              "Registration Rights Agreement" shall mean the Registration
Rights Agreement dated a date even herewith by and between the Company and
Candlelight Investors LLC, as it may be amended from time to time.

              "Restricted Common Stock" shall mean shares of Common Stock
which are, or which upon their issuance on the exercise of this Warrant would
be, evidenced by a certificate bearing the restrictive legend set forth in
Section 9.1(a).

              "Securities Act" shall mean the Securities Act of 1933, as
amended, or any successor federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect at the time.

              "Securities Purchase Agreement" shall mean the Securities
Purchase Agreement dated as of a date even herewith by and between the
Company and Candlelight Investors LLC, as it may be amended from time to
time.

              "Transfer" shall mean any disposition of any Warrant or Warrant
Stock or of any interest in either thereof, which would constitute a sale
thereof within the meaning of the Securities Act.

              "Transfer Notice" shall have the meaning set forth in Section
9.2.

              "Warrant Issuance Date" shall mean any date on which Warrants
are issued pursuant to the Securities Purchase Agreement.

              "Warrants" shall mean this Warrant and all warrants issued upon
transfer, division or combination of, or in substitution for, any thereof.
All Warrants shall at all times be identical as to terms and conditions and
date, except as to the number of shares of Common Stock for which they may be
exercised.

              "Warrant Price" shall mean an amount equal to (i) the number of
shares of Common Stock being purchased upon exercise of this Warrant pursuant
to Section 2.1, multiplied by (ii) the Current Warrant Price as of the date
of such exercise.

                                       3

<PAGE>

              "Warrant Stock" shall mean the shares of Common Stock purchased
by the holders of the Warrants upon the exercise thereof.

2. EXERCISE OF WARRANT

              2.1.  MANNER OF EXERCISE. From and after the Warrant Issuance
Date and until 5:00 P.M., New York City time, on the Expiration Date, Holder
may exercise this Warrant, on any Business Day, for all or any part of the
number of shares of Common Stock purchasable hereunder.

              In order to exercise this Warrant, in whole or in part, Holder
shall deliver to the Company at the office or agency designated by the
Company pursuant to Section 12, (i) a written notice of Holder's election to
exercise this Warrant, which notice shall specify the number of shares of
Common Stock to be purchased, (ii) payment by cash, check or bank draft
payable to the Company of the Warrant Price in cash or by wire transfer or
cashier's check drawn on a United States bank or by the Holder's surrender of
Warrant Stock (or the right to receive such number of shares) having an
aggregate Market Price equal to the Warrant Price for all shares then being
purchased and (iii) this Warrant. Such notice shall be substantially in the
form of the subscription form appearing at the end of this Warrant as EXHIBIT
A, duly executed by Holder or its agent or attorney. Upon receipt of the
items referred to in clauses (i), (ii) and (iii) above, the Company shall, as
promptly as practicable, and in any event within four (4) Business Days
thereafter, execute or cause to be executed and deliver or cause to be
delivered to Holder a certificate or certificates representing the aggregate
number of full shares of Common Stock issuable upon such exercise, together
with cash in lieu of any fraction of a share, as hereinafter provided. The
stock certificate or certificates so delivered shall be, to the extent
possible, in such denomination or denominations as Holder shall request in
the notice and shall be registered in the name of Holder or, subject to
Section 9, such other name as shall be designated in the notice. This
Warrant shall be deemed to have been exercised and such certificate or
certificates 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 Warrant Price. If this
Warrant shall have been exercised in part, the Company shall, at the time of
delivery of the certificate or certificates representing Warrant Stock,
deliver to Holder a new Warrant evidencing the rights of Holder to purchase
the unpurchased shares of Common Stock called for by this Warrant, which new
Warrant shall in all other respects be identical with this Warrant.

              The Holder shall be entitled to exercise the Warrant
notwithstanding the commencement of any case under 11 U.S.C. Section 101 ET
SEQ. (the "Bankruptcy Code"). In the event the Company is a debtor under the
Bankruptcy Code, the Company hereby waives to the fullest extent permitted
any rights to relief it may have under 11 U.S.C. Section 362 in respect of
the Holder's exercise right. The Company hereby waives to the fullest extent
permitted any rights to relief it may have under 11 U.S.C. Section 362 in
respect of the exercise of the Warrant. The Company agrees, without cost or
expense to the Holder, to take or consent to any and all action necessary to
effectuate relief under 11 U.S.C. Section 362.

                                       4

<PAGE>

              2.2.  PAYMENT OF TAXES AND CHARGES. All shares of Common
Stock issuable upon the exercise of this Warrant pursuant to the terms hereof
shall be validly issued, fully paid and nonassessable, and without any
preemptive rights. The Company shall pay all expenses in connection with, and
all taxes and other governmental charges that may be imposed with respect to,
the issue or delivery thereof.

              2.3.  FRACTIONAL SHARES. The Company shall not be required to
issue a fractional share of Common Stock upon exercise of any 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 the same fraction of the Market
Price per share of Common Stock on the relevant exercise date.

              2.4.  CONTINUED VALIDITY. A holder of shares of Common Stock
issued upon the exercise of this Warrant, in whole or in part (other than a
holder who acquires such shares after the same have been publicly sold
pursuant to a Registration Statement under the Securities Act or sold
pursuant to Rule 144 thereunder), shall continue to be entitled with respect
to such shares to all rights to which it would have been entitled as Holder
under Sections 9, 10 and 14 of this Warrant. The Company will, at the time
of exercise of this Warrant, in whole or in part, upon the request of Holder,
acknowledge in writing, in form reasonably satisfactory to Holder, its
continuing obligation to afford Holder all such rights; PROVIDED, HOWEVER,
that if Holder shall fail to make any such request, such failure shall not
affect the continuing obligation of the Company to afford to Holder all such
rights.

3. TRANSFER, DIVISION AND COMBINATION

              3.1.  TRANSFER. Subject to compliance with Sections 9,
transfer of this Warrant and all rights hereunder, in whole or in part, shall
be registered on the books of the Company to be maintained for such purpose,
upon surrender of this Warrant at the principal office of the Company
referred to in Section 2.1 or the office or agency designated by the Company
pursuant to Section 12, together with a written assignment of this Warrant
substantially in the form of EXHIBIT B hereto duly executed by Holder or its
agent or attorney. Upon such surrender, the Company shall, subject to Section
9, execute and deliver a new Warrant or Warrants in the name of the assignee
or assignees and in the denomination 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 in compliance with Section 9, may
be exercised by a new Holder for the purchase of shares of Common Stock
without having a new Warrant issued.

              3.2.  DIVISION AND COMBINATION. Subject to Section 9, this
Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office or agency of the Company, together with a
written notice specifying the names and denominations in which new Warrants
are to be issued, signed by Holder or its agent or attorney.  Subject to
compliance with Section 3.1 and with Section 9, as to any transfer which may
be involved in such division or combination, the Company shall execute and
deliver a new Warrant or Warrants

                                       5

<PAGE>

in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

              3.3.  EXPENSES. The Company shall prepare, issue and deliver
at its own expense the new Warrant or Warrants under this Section 3.

              3.4.  MAINTENANCE OF BOOKS. The Company agrees to maintain, at
its aforesaid office or agency, books for the registration and the
registration of transfer of the Warrants.

4. ADJUSTMENTS

              The number of shares of Common Stock for which this Warrant is
exercisable, or the price at which such shares may be purchased upon exercise
of this Warrant, shall be subject to adjustment from time to time as set
forth in this Section 4. The Company shall give Holder notice of any event
described below which requires an adjustment pursuant to this Section 4 at
the time of such event.

              4.1.  STOCK DIVIDENDS, SUBDIVISIONS AND COMBINATIONS. If at
any time the Company shall:

                     (a)  take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend payable in, or other
distribution of, Additional Shares of Common Stock,

                     (b)  subdivide its outstanding shares of Common Stock
into a larger number of shares of Common Stock, or

                     (c)  combine its outstanding shares of Common Stock
into a smaller number of shares of Common Stock,

then (i) the number of shares of Common Stock for which this Warrant is
exercisable immediately after the occurrence of any such event shall be
adjusted to equal the number of  shares of Common Stock which a record holder
of the same number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the occurrence of such event would own or be
entitled to receive after the happening of such event, and (ii) the Current
Warrant Price shall be adjusted to equal (A) the Current Warrant Price
multiplied by the number of shares of Common Stock for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of
shares for which this Warrant is exercisable immediately after such
adjustment.

                                       6

<PAGE>

              4.2.  CERTAIN OTHER DISTRIBUTIONS.

                     If at any time prior to the Expiration Date the Company
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive any dividend or other distribution of:

                                   (i)    cash,
                                   (ii)   any evidences of its indebtedness,
                     any shares of its stock or any other securities or
                     property of any nature whatsoever (other than cash,
                     Convertible Securities or Additional Shares of Common
                     Stock), or
                                   (iii)  any warrants or other rights to
                     subscribe for or purchase any evidences of its
                     indebtedness, any shares of its stock or any other
                     securities or property of any nature whatsoever (other
                     than cash, Convertible Securities or Additional Shares of
                     Common Stock),

then Holder shall be entitled to receive such dividend or distribution as if
Holder had exercised the Warrant.  A reclassification of the Common Stock
(other than a change in par value, or from par value to no par value or from
no par value to par value) into shares of Common Stock and shares of any
other class of stock shall be deemed a distribution by the Company to the
holders of its Common Stock of such shares of such other class of stock
within the meaning of this Section 4.2 and, if the outstanding shares of
Common Stock shall be changed into a larger or smaller number of shares of
Common Stock as a part of such reclassification, such change shall be deemed
a subdivision or combination, as the case may be, of the outstanding shares
of Common Stock within the meaning of Section 4.1.

              4.3.  OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS UNDER THIS
SECTION.  The following provisions shall be applicable to the making of
adjustments of the number of shares of Common Stock for which this Warrant is
exercisable and the Current Warrant Price provided for in this Section 4:

                     (a)  WHEN ADJUSTMENTS TO BE MADE.  The adjustments
required by this Section 4 shall be made whenever and as often as any
specified event requiring an adjustment shall occur.  For the purpose of any
adjustment, any specified event shall be deemed to have occurred at the close
of business on the date of its occurrence.

                     (b)  FRACTIONAL INTERESTS.  In computing adjustments
under this Section 4, fractional interests in Common Stock shall be taken
into account to the nearest 1/10th of a share.

                     (c)  WHEN ADJUSTMENT NOT REQUIRED.  If the Company
shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or distribution or subscription or
purchase rights and shall, thereafter and before the distribution to
stockholders thereof, legally abandon its plan to pay or deliver such
dividend, distribution, subscription or purchase rights, then thereafter no
adjustment shall be required by reason of the

                                       7

<PAGE>

taking of such record and any such adjustment previously made in respect
thereof shall be rescinded and annulled.

                     (d)  CHALLENGE TO GOOD FAITH DETERMINATION.  Whenever
the Board of Directors of the Company shall be required to make a
determination in good faith of the fair value of any item under this Section
4, such determination may be challenged in good faith by the Holder, and any
dispute shall be resolved by an independent third party investment banking
firm of recognized national standing mutually acceptable by the Holder and
the Company.

              4.4.  REORGANIZATION, RECLASSIFICATION, MERGER, CONSOLIDATION
OR DISPOSITION OF ASSETS.  In case the Company shall reorganize its capital,
reclassify its capital stock, consolidate or merge with or into another
corporation (where the Company is not the surviving corporation or where
there is a change in or distribution with respect to the Common Stock of the
Company), or sell, transfer or otherwise dispose of all or substantially all
its property, assets or business to another corporation and, pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or
distributed to the holders of Common Stock of the Company, then Holder shall
have the right thereafter to receive, upon exercise of the 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 Other Property
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.  In case of any such reorganization, reclassification,
merger, consolidation or disposition of assets, the successor or acquiring
corporation (if other than the Company) shall expressly assume the due and
punctual observance and performance of each and every covenant and condition
of this Warrant to be performed and observed by the Company and all the
obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate, subject to the Holder's consent, in order to provide
for adjustments of shares of Common Stock for which this Warrant is
exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 4.  For purposes of this Section
4.4, "common stock of the successor or acquiring corporation" shall include
stock of such corporation of any class which is not preferred as to dividends
or assets over any other class of stock of such corporation and which is not
subject to redemption and shall also include any evidences of indebtedness,
shares of stock or other securities which are convertible into or
exchangeable for any such stock, either immediately or upon the arrival of a
specified date or the happening of a specified event and any warrants or
other rights to subscribe for or purchase any such stock.  The foregoing
provisions of this Section 4.4 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

              4.5.  OTHER ACTION AFFECTING COMMON STOCK.  In case at any
time or from time to time the Company shall take any action in respect of its
Common Stock, other than any action taken in the ordinary course of the
Company's business or any action described in this Section 4, which would
have a material adverse effect upon the rights of the Holder, the number of
shares

                                       8

<PAGE>

of Common Stock and/or the purchase price thereof shall be adjusted in such
manner as may be equitable in the circumstances, as determined in good faith
by an independent third party investment bank mutually acceptable to Holder
and Company.

              4.6.  CERTAIN LIMITATIONS.  Notwithstanding anything herein to
the contrary, the Company agrees not to enter into any transaction which, by
reason of any adjustment hereunder, would cause the Current Warrant Price to
be less than the par value per share of Common Stock.

              4.7.  NO VOTING RIGHTS.  This Warrant shall not entitle its
Holder to any voting rights or other rights as a shareholder of the Company.

5. NOTICES TO HOLDER

              5.1.  NOTICE OF ADJUSTMENTS.  Whenever the number of shares of
Common Stock for which this Warrant is exercisable, or whenever the price at
which a share of such Common Stock may be purchased upon exercise of the
Warrants, shall be adjusted pursuant to Section 4, the Company shall
forthwith prepare a certificate to be executed by an executive officer of the
Company setting forth, in reasonable detail, the event requiring the
adjustment and the method by which such adjustment was calculated, specifying
the number of shares of Common Stock for which this Warrant is exercisable
and (if such adjustment was made pursuant to Section 4.4 or 4.5) describing
the number and kind of any other shares of stock or Other Property for which
this Warrant is exercisable, and any change in the purchase price or prices
thereof, after giving effect to such adjustment or change.  The Company shall
promptly cause a signed copy of such certificate to be delivered to the
Holder in accordance with Section 14.2. The Company shall keep at its office
or agency designated pursuant to Section 12 copies of all such certificates
and cause the same to be available for inspection at said office during
normal business hours by the Holder, its representatives, or any prospective
purchaser of a Warrant designated by the Holder.

              5.2.  NOTICE OF CORPORATE ACTION.  If at any time

                     (a)  the Company shall take a record of the holders of
its Common Stock for the purpose of entitling them to receive a dividend or
other distribution, or any right to subscribe for or purchase any evidences
of its indebtedness, any shares of stock of any class or any other securities
or property, or to receive any other right, or

                     (b)  there shall be any capital reorganization of the
Company, any reclassification or recapitalization of the capital stock of the
Company or any consolidation or merger of the Company with, or any sale,
transfer or other disposition of all or substantially all the property,
assets or business of the Company to, another corporation, or

                                       9

<PAGE>

                     (c)  there shall be a voluntary or involuntary
dissolution, liquidation or winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i)
at least thirty (30) Business Days' prior written notice of the date on which
a record date shall be selected for such dividend, distribution or right or
for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up, and (ii) in the case of any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least thirty (30)
Business Days' prior written notice of the date when the same shall take
place. Such notice in accordance with the foregoing clause also shall specify
(i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common
Stock shall be entitled to any such dividend, distribution or right, and the
amount and character thereof, and (ii) the date on which any such
reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the
time, if any such time is to be fixed, as of which the holders of Common
Stock shall be entitled to exchange their shares of Common Stock for
securities or other property deliverable upon such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up.  Each such written notice shall be
sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with
Section 14.2.

6. NO IMPAIRMENT

              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 against impairment.  Without limiting the
generality of the foregoing, the Company will (a) not increase the par value
of any shares of Common Stock receivable upon the exercise of this Warrant
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 shares of Common Stock upon the exercise of this
Warrant, and (c) use its best 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.

              Upon the request of Holder, the Company will at any time during
the period this Warrant is outstanding acknowledge in writing, in form
reasonably satisfactory to Holder, the continuing validity of this Warrant
and the obligations of the Company hereunder.

                                       10

<PAGE>

7. RESERVATION AND AUTHORIZATION OF COMMON STOCK

              From and after the Initial Closing Date, the Company shall at all
times reserve and keep available for issue upon the exercise of Warrants such
number of its authorized but unissued shares of Common Stock as will be
sufficient to permit the exercise in full of all outstanding Warrants.  All
shares of Common Stock which shall be so issuable, when issued upon exercise of
any Warrant and payment therefor in accordance with the terms of such Warrant,
shall be duly and validly issued and fully paid and nonassessable, and not
subject to preemptive rights.

              Before taking any action which would cause an adjustment reducing
the Current Warrant Price below the then par value, if any, of the shares of
Common Stock issuable upon exercise of the Warrants, the Company shall take any
corporate action which may be necessary in order that the Company may validly
and legally issue fully paid and non-assessable shares of such Common Stock at
such adjusted Current Warrant Price.

              Before taking any action which would result in an adjustment in
the number of shares of Common Stock for which this Warrant is exercisable or in
the Current Warrant 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.

8. TAKING OF RECORD; STOCK AND WARRANT TRANSFER BOOKS

              In the case of all dividends or other distributions by the Company
to the holders of its Common Stock with respect to which any provision of
Section 4 refers to the taking of a record of such holders, the Company will in
each such case take such a record as of the close of business on a Business Day.
The Company will not at any time close its stock transfer books or Warrant
transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant.

9. RESTRICTIONS ON TRANSFERABILITY

              The Warrants and the Warrant Stock shall not be transferred,
hypothecated or assigned before satisfaction of the conditions specified in this
Section 9, which conditions are intended to ensure compliance with the
provisions of the Securities Act with respect to the Transfer of any Warrant or
any Warrant Stock.  Holder, by acceptance of this Warrant, agrees to be bound by
the provisions of this Section 9.

              9.1.  RESTRICTIVE LEGEND.  The Holder by accepting this
Warrant and any Warrant Stock agrees that this Warrant and the Warrant Stock
issuable upon exercise hereof may not be assigned or otherwise transferred
unless and until (i) the Company has received an opinion of counsel for the
Holder that such securities may be sold pursuant to an exemption from
registration under the Securities Act or (ii) a registration statement relating
to such securities has been filed by the Company and declared effective by the
Commission.

                                       11

<PAGE>

                            (a)  Each certificate for Warrant Stock issuable
       hereunder shall bear a legend substantially worded as follows unless such
       securities have been sold pursuant to an effective registration statement
       under the Securities Act:

                            "The securities represented by this
                     certificate have not been registered under
                     the Securities Act of 1933, as amended (the
                     "Act") or any state securities laws.  The
                     securities may not be offered for sale, sold,
                     assigned, offered, transferred or otherwise
                     distributed for value except (i) pursuant to
                     an effective registration statement under the
                     Act or any state securities laws or (ii)
                     pursuant to an exemption from registration or
                     prospectus delivery requirements under the
                     Act or any state securities laws in respect
                     of which the Company has received an opinion
                     of counsel satisfactory to the Company to
                     such effect.  Copies of the agreement
                     covering both the purchase of the securities
                     and restricting their transfer may be
                     obtained at no cost by written request made
                     by the holder of record of this certificate
                     to the Secretary of the Company at the
                     principal executive offices of the Company."

                            (b)  Except as otherwise provided in this Section 9,
       the Warrant shall be stamped or otherwise imprinted with a legend in
       substantially the following form:

                            "This Warrant and the securities
                     represented hereby have not been registered
                     under the Securities Act of 1933, as amended,
                     or any state securities laws and may not be
                     transferred in violation of such Act, the
                     rules and regulations thereunder or any state
                     securities laws or the provisions of this
                     Warrant."

              9.2.  NOTICE OF PROPOSED TRANSFERS.  Prior to any Transfer or
attempted Transfer of any Warrants or any shares of Restricted Common Stock, the
Holder shall give five (5) business days' prior written notice (a "Transfer
Notice") to the Company of Holder's intention to effect such Transfer,
describing the manner and circumstances of the proposed Transfer, and obtain
from counsel to Holder an opinion that the proposed Transfer of such Warrants or
such Restricted Common Stock may be effected without registration under the
Securities Act or state securities laws.  After the Company's receipt of the
Transfer Notice and opinion, such Holder shall thereupon be entitled to Transfer
such Warrants or such Restricted Common Stock, in accordance with the terms of
the Transfer Notice.  Each certificate, if any, evidencing such shares of
Restricted Common Stock issued upon such Transfer and the Warrant issued upon
such Transfer shall bear the restrictive legends set forth in Section 9.1,
unless in the opinion of such counsel such legend is not required in order to
ensure compliance with the Securities Act.

                                       12

<PAGE>

              9.3.  REQUIRED REGISTRATION.  Pursuant to the terms and
conditions set forth in the Registration Rights Agreement, the Company shall
prepare and file with the Commission not later than the thirtieth (30th) day
after the Initial Closing Date, a Registration Statement relating to the offer
and sale of the Common Stock issuable upon exercise of the Warrants and shall
use its best efforts to cause the Commission to declare such Registration
Statement effective in accordance with the terms set forth in Section 2(a) of
the Registration Rights Agreement.

              9.4.  TERMINATION OF RESTRICTIONS.  Notwithstanding the foregoing
provisions of Section 9, the restrictions imposed by this Section upon the
transferability of the Warrants, the Warrant Stock and the Restricted Common
Stock (or Common Stock issuable upon the exercise of the Warrants) and the
legend requirements of Section 9.1 shall terminate as to any particular Warrant
or share of Warrant Stock or Restricted Common Stock (or Common Stock issuable
upon the exercise of the Warrants) (i) when and so long as such security shall
have been effectively registered under the Securities Act and applicable state
securities laws and disposed of pursuant thereto or (ii) when the Company shall
have received an opinion of counsel that such shares may be transferred without
registration thereof under the Securities Act and applicable state securities
laws.  Whenever the restrictions imposed by Section 9 shall terminate as to this
Warrant, as hereinabove provided, the Holder hereof shall be entitled to receive
from the Company upon written request of the Holder, at the expense of the
Company, a new Warrant bearing the following legend in place of the restrictive
legend set forth hereon:

                            "THE RESTRICTIONS ON TRANSFERABILITY
                     OF THE WITHIN WARRANT CONTAINED IN SECTION 9
                     HEREOF TERMINATED ON ________, 19__, AND ARE
                     OF NO FURTHER FORCE AND EFFECT."

All Warrants issued upon registration of transfer, division or combination of,
or in substitution for, any Warrant or Warrants entitled to bear such legend
shall have a similar legend endorsed thereon.  Whenever the restrictions imposed
by this Section shall terminate as to any share of Restricted Common Stock, as
hereinabove provided, the holder thereof shall be entitled to receive from the
Company, at the Company's expense, a new certificate representing such Common
Stock not bearing the restrictive legends set forth in Section 9.1.

              9.5.  LISTING ON SECURITIES EXCHANGE.  If the Company shall list
any shares of Common Stock on any securities exchange, it will, at its expense,
list thereon, maintain and, when necessary, increase such listing of, all shares
of Common Stock issued or, to the extent permissible under the applicable
securities exchange rules, issuable upon the exercise of this Warrant so long as
any shares of Common Stock shall be so listed during the Exercise Period.

10. SUPPLYING INFORMATION

              The Company shall cooperate with Holder in supplying such
information as may be reasonably necessary for Holder to complete and file any
information reporting forms

                                       13

<PAGE>

presently or hereafter required by the Commission as a condition to the
availability of an exemption from the Securities Act for the sale of any
Warrant or Restricted Common Stock.

11. LOSS OR MUTILATION

              Upon receipt by the Company from Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant and indemnity reasonably satisfactory to it (it being
understood that the written agreement of the Holder shall be sufficient
indemnity), and in case of mutilation upon surrender and cancellation hereof,
the Company will execute and deliver in lieu hereof a new Warrant of like tenor
to Holder; PROVIDED, in the case of mutilation, no indemnity shall be required
if this Warrant in identifiable form is surrendered to the Company for
cancellation.

12. OFFICE OF THE COMPANY

              As long as any of the Warrants remain outstanding, the Company
shall maintain an office or agency (which may be the principal executive offices
of the Company) where the Warrants may be presented for exercise, registration
of transfer, division or combination as provided in this Warrant, such office to
be initially located at 2450 Fondren, Suite 200, Houston, Texas 77063, fax (713)
334-2595, provided, however, that the Company shall provide prior written notice
to Holder of a change in address no less than thirty (30) days prior to such
change.

13. LIMITATION OF LIABILITY

              No provision hereof, in the absence of affirmative action by
Holder to purchase shares of Common Stock, and no enumeration herein of the
rights or privileges of Holder hereof, 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.

14. MISCELLANEOUS

              14.1.  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 all rights hereunder terminate on the Expiration Date.
If the Company fails to make, when due, any payments provided for hereunder, or
fails to comply with any other provision of this Warrant, the Company shall pay
to Holder such amounts as shall be sufficient to cover any direct losses,
damages, court costs and 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.

              14.2.  NOTICE GENERALLY.  Except as may be otherwise provided
herein, any notice or other communication or delivery required or permitted
hereunder shall be in writing and shall be delivered personally or sent by
certified mail, postage prepaid, or by a nationally recognized overnight courier
service, and shall be deemed given when so delivered personally or by

                                       14

<PAGE>

overnight courier service, or, if mailed, three (3) days after the date of
deposit in the United States mails, as follows:

                     (1)    if to the Company, to:

                            Clearworks.net, Inc.
                            2450 Fondren, Suite 200
                            Houston, Texas 77063
                            Attention:  Michael T. McClere, CEO
                            Tel: (713) 334-2595
                            Fax: (713) 334-6565

with a copy to:             Clearworks.net, Inc.
                            2450 Fondren, Suite 200
                            Houston, Texas 77063
                            Attention:  Celia Figueroa, Esq.
                            Tel: (713) 334-7778
                            Fax: (713) 334-7470

                     (2)    if to the Purchaser to:

                            Candlelight Investors LLC
                            WEC Asset Management LLC
                            One World Trade Center, Suite 4563
                            New York, New York 10048
                            Attention: Ethan Benovitz
                            Tel: (212) 775-9299
                            Fax: (212) 775-9311

with a copy to:
                            Pryor Cashman Sherman & Flynn LLP
                            410 Park Avenue
                            New York, New York 10022
                            Attention: Mark Saks, Esq.
                            Tel: (212) 326-0140
                            Fax: (212) 326-0806

   The Company or the Holder may change the foregoing address by notice given
pursuant to this Section 14.2.

              14.3.  INDEMNIFICATION.  The Company agrees to indemnify and hold
harmless Holder from and against any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, claims, court costs, reasonable attorneys'
fees, incurred by or asserted against Holder in any manner relating to or
arising out of any failure by the Company to perform or

                                       15

<PAGE>

observe in any respect any of its covenants, agreements, undertakings or
obligations set forth in this Warrant.

              14.4.  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.

              14.5.  SUCCESSORS AND ASSIGNS.  Subject to the provisions of
Sections 3.1 and 9, this Warrant and the rights evidenced hereby shall inure to
the benefit of and be binding upon the successors of the Company and the
successors and 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, with
respect to Section 9 hereof, holders of Warrant Stock, and shall be enforceable
by any such Holder or holder of Warrant Stock.

              14.6.  AMENDMENT.  This Warrant and all other Warrants may be
modified or amended or the provisions hereof waived only with the prior written
consent of the Company and the Holder.

              14.7.  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
provision or the remaining provisions of this Warrant.

              14.8.  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.

              14.9.  GOVERNING LAW.  This Warrant shall be governed by the laws
of the State of New York, without regard to the provisions thereof relating to
conflict of laws. The Company consents to the jurisdiction of the federal courts
whose districts encompass any part of the City of New York or the state courts
of the State of New York sitting in the City of New York in connection with any
dispute arising under this Warrant or any of the transactions contemplated
hereby, and hereby waives, to the maximum extent permitted by law, any
objection, including any objections based on FORUM NON CONVENIENS, to the
bringing of any such proceeding in such jurisdictions.

                                       16

<PAGE>

              IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and its corporate seal to be impressed hereon and attested by its
Secretary or an Assistant Secretary.

Dated: December 13, 1999

                                                 CLEARWORKS.NET, INC.

                                                 By:
                                                    ---------------------------
                                                    Name:
                                                    Title:

Attest:

By:
   --------------------------
   Name:
   Title:

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