Document:

FOURTH AMENDMENT TO EQUIPMENT LEASE
                       -----------------------------------

         FOURTH AMENDMENT,  dated as of June 27, 2000 (the "Fourth  Amendment"),

to  Equipment  Lease dated July 18,  1991 (the  "Equipment  Lease")  between PRC

Leasing,  Inc.,  a  corporation  organized  and  existing  under the laws of the

Commonwealth of Puerto Rico (herein called "Lessor"), and TII Industries,  Inc.,

a corporation organized and existing under the laws of the State of Delaware and

authorized to do business in Puerto Rico (herein called "Lessee").

         WHEREAS,  Lessor and Lessee entered into an Equipment  Lease dated July
18, 1991,  as amended by a First  Amendment  dated as of July 18, 1992, a Second

Amendment  dated as of February 25, 1993 and a Restated Third Amendment dated as

of December 14, 1993 (as amended to date, the "Equipment Lease"); and

         WHEREAS,  Lessee has  determined to re-align its  operations  and, as a

result,  is no longer in need of all of the Equipment  presently  subject to the

Equipment Lease; and

         WHEREAS,  Lessor is willing to amend the Equipment  Lease to remove the

Equipment  presently  subject  thereto from the  Equipment  Lease and agree to a

reduction  in rent  (equal to the  annual  rental  amounts  attributable  to the

particular pieces of the Equipment being removed from the scope of the Equipment

Lease), all on the terms and conditions set forth herein;

         NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  mutual

covenants  and  agreements  herein as set forth,  the  parties  agree  hereto as

follows:

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         1. Amendment to Equipment Lease. The Equipment Lease is hereby amended

as of the date hereof as follows:

                  (a) Schedule A to the Equipment Lease is amended to read as

                  set forth in Exhibit A hereto;

                  (b) Section 4 of the Equipment Lease is deleted in its

                  entirety and the following new Section 4 is inserted in its

                  place:

                           4. Rents. Lessee shall pay as rent for the leasing of

                  the Equipment for the  remaining  term of the Lease  following

                  the date of the Fourth  Amendment  of the  Equipment  Lease as

                  follows:  (i) on July 18,  2001 (for the period from that date

                  through January 17, 2001),  $69,737.94 and (ii) on January 18,

                  2001 (for the period from  January 18, 2001 through the end of

                  the Lease term on July 17, 2001), $69,737.94.

         2. Continued Occupancy of Space. Lessee agrees that Lessor may continue

to store the  Equipment  being  removed  from the  Equipment  Lease at  Lessee's

premises in Puerto Rico pending their sale or other  disposition  by Lessor on a

rent-free  basis in a separate  area of Lessee's  premises  until same are sold,

leased to a third party or otherwise disposed of by Lessor.

                                      -2-

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         3. Terms. All capitalized terms used, but not defined in this Fourth

Amendment, herein shall be used as defined in the Equipment Lease.

         4. Choice of Law. This Fourth Amendment shall be deemed to have been

executed and entered into in the Commonwealth of Puerto Rico and shall be

construed, enforced and performed in accordance with the laws thereof. 5.

Exclusion of Oral Statements. This Fourth Amendment contains all of the

agreements of the parties hereto with respect to the subject matter hereof. No

oral or other statements, proposals or other agreements with respect to the

subject matter hereof shall be binding on either of the parties hereto.

         6. Agreement to Continue Equipment Lease as Amended. The Equipment

Lease, as amended hereby, shall remain and continue in full force and effect

after the date hereof.

PRC Leasing, Inc.                               TII Industries, Inc.

By: /s/ Alfred J. Roach                         By: /s/ Timothy J. Roach
   ------------------------------                  -----------------------------
        Alfred J. Roach                                 Timothy J. Roach
        President                                       President

                                      -3-THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED  UNDER
THE  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE  "ACT"),  OR  APPLICABLE  STATE
SECURITIES  LAWS.  THIS WARRANT AND THE WARRANT SHARES ISSUABLE UPON EXERCISE OF
THIS WARRANT MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
SUCH  REGISTRATION OR PURSUANT TO AN EXEMPTION  THEREFROM UNDER THE ACT AND SUCH
LAWS, SUPPORTED BY AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY
AND ITS COUNSEL,  THAT SUCH  REGISTRATION IS NOT REQUIRED.  THIS WARRANT AND THE
COMPANY'S  SUBSCRIPTION  AGREEMENT  WITH THE  HOLDER  SET  FORTH  THE  COMPANY'S
OBLIGATIONS TO REGISTER FOR RESALE THIS WARRANT AND THE WARRANT  SHARES.  A COPY
OF SUCH  SUBSCRIPTION  AGREEMENT IS AVAILABLE  FOR  INSPECTION  AT THE COMPANY'S
OFFICE.

THIS WARRANT MAY NOT, IN ANY EVENT,  BE TRANSFERRED TO ANY PERSON OR ENTITY THAT
IS NOT AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501,  PROMULGATED UNDER
THE ACT.

                                                             For the Purchase of
                                                                  _______ shares

No.  ___

                    REDEEMABLE COMMON STOCK PURCHASE WARRANT
                               FOR THE PURCHASE OF
                             SHARES OF COMMON STOCK
                                       OF
                              TII INDUSTRIES, INC.

                  TII  Industries,  Inc.,  a Delaware  corporation  ("Company"),
hereby certifies that, for value received,_____________________________________,
or his,  her or its  registered  assigns  ("Registered  Holder"),  is  entitled,
subject to the terms set forth below, to purchase from the Company,  at any time
or from  time to time  during  the  period  commencing  on  December  9,  2000 (
"Commencement  Date") and ending on December 8, 2004, ______ ("Initial  Number")
shares of common stock, $.01 par value, of the Company ("Common  Stock"),  at an
initial exercise price of $2.79.  This Warrant is one of a series of Warrants of
even date  herewith.  The  number of shares  of Common  Stock  purchasable  upon
exercise of this  Warrant,  and the exercise  price per share,  each as adjusted
from time to time pursuant to the  provisions of this Warrant,  are  hereinafter
referred to as the "Warrant Shares" and the "Exercise Price," respectively.

         1.       Exercise.
                  --------

                  (a) This Warrant may be exercised by the Registered Holder, in
whole or in part,  by the surrender of this Warrant (with the Notice of Exercise
Form attached hereto duly executed by such  Registered  Holder) at the principal
office of the  Company,  or at such other  office or agency as the  Company  may
designate, accompanied by payment in full, in lawful money of the United States,
of an amount  equal to the then  applicable  Exercise  Price  multiplied  by the
number of Warrant Shares then being purchased upon such exercise.

<PAGE>
                  (b) Each exercise of this Warrant shall be deemed to have been
effected  immediately  prior to the close of  business  on the day on which this
Warrant  shall have been  surrendered  to the Company as provided in  subsection
1(a)  above.  At such  time,  the  person or  persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise as provided
in subsection 1(c) below shall be deemed to have become the holder or holders of
record of the Warrant Shares represented by such certificates.

                  (1) Within three (3) business days after the exercise of the
purchase right represented by this Warrant, the Company at its expense will use
its best efforts to cause to be issued in the name of, and delivered to, the
Registered Holder, or, subject to the terms and conditions hereof, to such other
individual or entity as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

                     (1) a certificate or certificates for the number of full
shares of Warrant Shares to which such Registered Holder shall be entitled upon
such exercise plus, in lieu of any fractional share to which such Registered
Holder would otherwise be entitled, cash in an amount determined pursuant to
Section 3 hereof, and

                     (2) in case such exercise is in part only, a new Warrant or
Warrants (dated the date hereof) of like tenor, stating on the face or faces
thereof the number of shares currently stated on the face of this Warrant minus
the number of such shares purchased by the Registered Holder upon such exercise
as provided in subsection 1(a) above (prior to any adjustments made thereto
pursuant to the provisions of this Warrant).

2.       Adjustments.
         -----------

            (1) Split, Subdivision or Combination of Shares. At any time after
June 8, 2000 and until this Warrant is exercised or redeemed or expires by its
terms, if the outstanding shares of the Company's Common Stock shall be
subdivided or split into a greater number of shares or a dividend in Common
Stock shall be paid in respect of Common Stock, the Exercise Price in effect
immediately prior to such subdivision or at the record date of such dividend
shall, simultaneously with the effectiveness of such subdivision or split or
immediately after the record date of such dividend (as the case may be), be
proportionately decreased. If the outstanding shares of Common Stock shall be
combined or reverse-split into a smaller number of shares, the Exercise Price in
effect immediately prior to such combination or reverse split shall,
simultaneously with the effectiveness of such combination or reverse split, be
proportionately increased. When any adjustment is required to be made in the
Exercise Price, the number of Warrant Shares purchasable upon the exercise of
this Warrant shall be changed to the number determined by dividing (i) an amount
equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately prior to such adjustment, by (ii) the Exercise Price in effect
immediately after such adjustment.

            (2) Reclassification, Reorganization, Consolidation or Merger. At
any time after June 8, 2000 and until this Warrant is exercised or redeemed or
expires by its terms, if there is any reclassification of the Common Stock
(other than a change in par value or a subdivision or combination as provided
for in subsection 2(a) above), or any reorganization, consolidation or merger of
the Company with or into another entity (other than a merger or reorganization
with respect to which the Company is the continuing corporation and that does
not result in any reclassification of the Common Stock), or a transfer of all or
substantially all of

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<PAGE>

the assets of the Company, or the payment of a liquidating distribution, then,
as part of any such reorganization, reclassification, consolidation, merger,
sale or liquidating distribution, lawful provision shall be made so that the
Registered Holder of this Warrant shall have the right thereafter to receive
upon the exercise hereof (to the extent, if any, still exercisable) the kind and
amount of shares of stock or other securities or property that such Registered
Holder would have been entitled to receive if, immediately prior to any such
reorganization, reclassification, consolidation, merger, sale or liquidating
distribution, as the case may be, such Registered Holder had held the number of
shares of Common Stock that were then purchasable upon the exercise of this
Warrant, provided, that, in the case of any such liquidating distribution, the
value of such property (as reasonably determined by the Company's Board of
Directors) exceeds the Exercise Price. In any such case, appropriate adjustment
(as reasonably determined by the Board of Directors of the Company) shall be
made in the application of the provisions set forth herein with respect to the
rights and interests thereafter of the Registered Holder of this Warrant such
that the provisions set forth in this Section 2 (including provisions with
respect to the Exercise Price) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.

            (3) Price Adjustment. No adjustment in the per share Exercise Price
shall be required unless such adjustment would require an increase or decrease
in the Exercise Price by at least $0.01; provided, however, that any adjustments
that by reason of this subsection are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Section 2 shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be.

            (4) Price Reduction. Notwithstanding any other provision set forth
in this Warrant, at any time and from time to time during the period that this
Warrant is exercisable, the Company in it sole discretion may reduce the
Exercise Price or extend the period during which this Warrant is exercisable.

            (5) No Impairment. The Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms to be observed or performed hereunder by the Company but will at all
times in good faith assist in the carrying out of all the provisions of this
Section 2 and in the taking of all such actions as may be necessary or
appropriate in order to protect against impairment of the rights of the
Registered Holder of this Warrant to adjustments in the Exercise Price.

            (6) Notice of Adjustment. Upon the happening of any event requiring
an adjustment of the Exercise Price hereunder, the Company shall forthwith give
written notice thereof to the Registered Holder of this Warrant stating the
adjusted Exercise Price and the adjusted number of Warrant Shares resulting from
such event and setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.

         3. Fractional Shares. The Company shall not be required upon the
exercise of this Warrant to issue any fractional shares, but shall make an
adjustment thereof in cash on the basis of the Closing Price (as defined in
Section 4) of the Company's Common Stock on the trading day immediately prior to
the date of exercise, applicable, or if there is no Closing Price,

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<PAGE>

then on the basis of the then fair market value of the Company's Common Stock as
shall be reasonably determined by the Board of Directors of the Company.

         4. Redemption. Beginning on June 8, 2001 this Warrant may be redeemed
by the Company, upon not less than 20 days' prior written notice to the holder,
at the redemption price of $.01 per share for every share of Common Stock
purchasable upon exercise hereof at the time of such redemption (the "Redemption
Price"), if the closing bid price of the Common Stock has been equal to or
greater than 200% of the then Exercise Price on each of the 10 consecutive
trading days ending on the third day prior to the day on which notice of
redemption is given to the Registered Holder; provided, however, that this
Warrant may be redeemed only if, on the first day of the aforementioned 10
consecutive trading days and thereafter at all times up to and including the
date on which notice is given and the subsequent date fixed for redemption, (i)
this Warrant is exercisable into shares of Common Stock registered for resale
under the Securities Act pursuant to an effective and current registration
statement, and (ii) the Common Stock subject to this Warrant is then listed on a
national securities exchange, the Nasdaq National Market or the Nasdaq SmallCap
Market or quoted on the OTC Bulletin Board or similar electronic trading
facility. For purposes of this Section 4, "closing bid price" shall mean the
closing bid price of the Common Stock as officially reported by the principal
securities exchange on which the Common Stock is listed or admitted to trading,
or, if the Common Stock is not listed or admitted to trading on any national
securities exchange or if any such exchange on which the Common Stock is listed
is not its principal trading market, the closing bid price as furnished by the
NASD through the Nasdaq National Market or the Nasdaq SmallCap Market, or, if
applicable, the OTC Bulletin Board or similar electronic facility. This Warrant
may not be redeemed unless each and every condition set forth in this Section 4
is satisfied. On and after the date of redemption the holder shall have only the
right to receive $.01 per share of Common Stock purchasable upon exercise hereof
at the time of such redemption.

         5. Limitation on Sales. Each holder of this Warrant acknowledges that
this Warrant and the Warrant Shares have not been registered under the
Securities Act of 1933, as amended ("Act"), as of the date of issuance hereof
and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant, or any Warrant Shares issued upon its
exercise, in the absence of (i) an effective registration statement under the
Act as to this Warrant or such Warrant Shares, as the case may be, and
registration or qualification of this Warrant or such Warrant Shares, as the
case may be, under any applicable Blue Sky or state securities law then in
effect or (ii) an opinion of counsel, satisfactory to the Company, that such
registration and qualification are not required.

                  In  addition,  this  Warrant  may  only  be  transferred  to a
transferee who certifies in writing to the Registered  Holder and to the Company
that such  transferee  is an  "accredited  investor"  within the meaning of Rule
501(a) promulgated by the Securities and Exchange Commission under the Act.

                  Without  limiting the generality of the foregoing,  unless the
offering  and sale of the  Warrant  Shares  to be  issued  upon  the  particular
exercise of the Warrant shall have been  effectively  registered  under the Act,
the Company  shall be under no  obligation  to issue the shares  covered by such
exercise  unless  and  until  the  Registered  Holder  shall  have  executed  an
investment letter in form and substance satisfactory to the Company, including a
warranty at the time of such exercise that it is then an  "accredited  investor"
within the meaning of Rule 501(c)  promulgated  by the  Securities  and Exchange
Commission under the Act, is acquiring such shares for its own account, and will
not  transfer the Warrant  Shares  unless  pursuant to an

                                       4
<PAGE>

effective and current registration statement under the Act or an exemption from
the registration requirements of the Act and any other applicable restrictions,
in which event the Registered Holder shall be bound by the provisions of a
legend or legends to such effect that shall be endorsed upon the certificate(s)
representing the Warrant Shares issued pursuant to such exercise. In such event,
the Warrant Shares issued upon exercise hereof shall be imprinted with a legend
in substantially the following form:

                  This  security has been  acquired for  investment  and has not
                  been registered  under the Securities Act of 1933, as amended,
                  or applicable  state securities laws. This security may not be
                  sold, pledged or otherwise  transferred in the absence of such
                  registration or pursuant to an exemption  therefrom under said
                  Act  and  such  laws,  supported  by an  opinion  of  counsel,
                  reasonably  satisfactory to the Company and its counsel,  that
                  such registration is not required.

         6. Registration Rights of Warrant Holder. The Company has agreed to
register this Warrant and the Warrant Shares for resale in accordance with the
Subscription Agreement and Investor Information Statement entered into between
the Company and the Registered Holder.

         7. Warrant Solicitation and Warrant Solicitation Fee.

            (1) The Company has engaged M.H. Meyerson & Co., Inc. ("Meyerson"),
on a non-exclusive basis, as its agent for the solicitation of the exercise of
the Warrants. The Company, at its cost, will (i) assist Meyerson with respect to
such solicitation, if requested by Meyerson and (ii) provide Meyerson lists of
the Registered Holders, and, to the extent known, beneficial owners of the
Company's Warrants. In addition to the conditions set forth in Section 7(b)
herein below, Meyerson shall accept payment of the warrant solicitation fee
provided in Section 7(b) only if it has provided bona fide services in
connection with the exercise of the Warrants. In addition to soliciting, either
orally or in writing, the exercise of Warrants by a Warrant holder, such
services may also include disseminating information, either orally or in
writing, to Warrant holders about the Company or the market for the Company's
securities, or assisting in the processing of the exercise of Warrants.

            (2) If, upon the exercise of any Warrant (other than Warrants issued
by the Company upon exercise of the Purchase Options issued by the Company to
Meyerson and/or its designees in connection with the original offering), (i) the
market price of the Common Stock is greater than the Exercise Price, (ii)
disclosure of compensation arrangements was made both at the time of the
original offering and at the time of exercise, (iii) the exercise of the Warrant
was solicited by Meyerson, (iv) the Warrant was not held in a discretionary
account, and (v) the solicitation of the exercise of the Warrant was not in
violation of Regulation M (as such rule or any successor rule may be in effect
as of such time of exercise) promulgated under the Securities Exchange Act of
1934, as amended, then the Company shall pay from the proceeds received upon
exercise of the Warrant(s), a fee of 4% of the Exercise Price to Meyerson,
provided that Meyerson delivers to the Company a certificate that the conditions
set forth in the preceding clauses (ii), (iii), (iv) and (v) have been
satisfied.

         8. Notices of Record Date. In case:

            (1) the Company shall take a record of the holders of its Common
Stock (or other stock or securities at the time deliverable upon the exercise of
this Warrant) for the

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<PAGE>

purpose of entitling or enabling them to receive any dividend or other
distribution, or to receive any right to subscribe for or purchase any shares of
any class or any other securities, or to receive any other right, or

            (2) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the surviving entity), or any
transfer of all or substantially all of the assets of the Company, or

            (3) of the voluntary or involuntary dissolution, liquidation or
winding-up of the Company, then, and in each such case, the Company will mail or
cause to be mailed to the Registered Holder of this Warrant a notice specifying,
as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and
character of such dividend, distribution or right, or (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such other
stock or securities at the time deliverable upon the exercise of this Warrant)
shall be entitled to exchange their shares of Common Stock (or such other stock
or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up. Such notice shall be mailed at least fifteen (15)
days prior to the record date or effective date for the event specified in such
notice, provided that the failure to mail such notice shall not affect the
legality or validity of any such action.

         9. Reservation of Stock. The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such Warrant Shares and other stock, securities and property, as from time to
time shall be issuable upon the exercise of this Warrant.

         10. Replacement of Warrants. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new
Warrant of like tenor.

         11. Transfers, etc.

            (1) The Company (or an agent of the Company) will maintain a
register containing the names and addresses of the Registered Holders of this
Warrant. Any Registered Holder may change its, his or her address as shown on
the warrant register by written notice to the Company requesting such change.

            (2) Until any transfer of this Warrant is made in the warrant
register, the Company may treat the Registered Holder of this Warrant as the
absolute owner hereof for all purposes; provided, however, that if and when this
Warrant is properly assigned in blank, the Company may (but shall not be
obligated to) treat the bearer hereof as the absolute owner hereof for all
purposes, notwithstanding any notice to the contrary.

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<PAGE>

         12. No Rights as Stockholder. Until the exercise of this Warrant, the
Registered Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a stockholder of the Company.

         13. Successors. The rights and obligations of the parties to this
Warrant will inure to the benefit of and be binding upon the parties hereto and
their respective heirs, successors, assigns, pledgees, transferees and
purchasers. Without limiting the foregoing, the registration rights referred to
in Section 6 of this Warrant shall inure to the benefit of the Registered Holder
and all the Registered Holder's successors, heirs, pledgees, assignees,
transferees and purchasers of this Warrant and the Warrant Shares.

         14. Change or Waiver. Any term of this Warrant may be changed or waived
only by an instrument in writing signed by the party against whom enforcement of
the change or waiver is sought.

         15. Headings. The headings in this Warrant are for purposes of
reference only and shall not limit or otherwise affect the meaning of any
provision of this Warrant.

         16. Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York as such laws are applied to
contracts made and to be fully performed entirely within that state between
residents of that state except to the extent the laws of the State of Delaware
mandatorily apply because the Company is incorporated in the State of Delaware.

         17. Jurisdiction and Venue. The Company (i) agrees that any legal suit,
action or proceeding arising out of or relating to this Warrant shall be
instituted exclusively in New York State Supreme Court, County of New York or in
the United States District Court for the Southern District of New York, (ii)
waives any objection to the venue of any such suit, action or proceeding and the
right to assert that such forum is not a convenient forum, and (iii) irrevocably
consents to the jurisdiction of the New York State Supreme Court, County of New
York, and the United States District Court for the Southern District of New York
in any such suit, action or proceeding, and the Company further agrees to accept
and acknowledge service or any and all process that may be served in any such
suit, action or proceeding in New York State Supreme Court, County of New York
or in the United States District Court for the Southern District of New York in
person or by certified mail addressed as provided in the following Section.

         18. Mailing of Notices, etc. All notices and other communications under
this Warrant (except payment) shall be in writing and shall be sufficiently
given if delivered to the addressees in person, by Federal Express or similar
overnight courier service, or if mailed, postage prepaid, by certified mail,
return receipt requested, as follows:

Registered Holder:          To his or her last known address as indicated on the
                            Company's books and records.

The Company:                TII Industries, Inc.
                            1385 Akron Street
                            Copiague, NY 11726
                            Attn: Chief Financial Officer
                            Fax: (631) 789-2228

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<PAGE>

In either case, with a copy to:   Graubard Mollen & Miller
                                  600 Third Avenue
                                  New York, New York 10016
                                  Attn: David Alan Miller, Esq.
                                  Fax: (212) 818-8881

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<PAGE>

or to such other address as any of them, by notice to the others,  may designate
from time to time.  Notice shall be deemed given (a) when personally  delivered,
(b) the scheduled  delivery date if sent by Federal  Express or other  overnight
courier service or (c) the fifth day after sent by certified mail.

                                          TII INDUSTRIES, INC.

                                          By: __________________________________
                                              Paul G. Sebetic
                                              Vice President - Finance

                                       9
<PAGE>

                               NOTICE OF EXERCISE
                     To Be Executed by the Registered Holder
                          In Order to Exercise Warrants

         The undersigned Registered Holder hereby irrevocably elects to exercise
______  Warrants  represented  by this  Warrant,  and to purchase  the shares of
Common Stock  issuable  upon the exercise of such  Warrants,  and requests  that
certificates for such shares of Common Stock shall be issued in the name of

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

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and be delivered to

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and if such number of Warrants  shall not be all the  Warrants  evidenced b this
Warrant  Certificate,  that a new  Warrant  Certificate  for the balance of such
Warrants be registered in the name of, and delivered to, the  Registered  Holder
at the address stated below.

Dated:_____________
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                                         (Signature of Registered Holder)

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

                                         ---------------------------------------
                                         (Address)

                                         ---------------------------------------
                                         (Taxpayer Identification Number)

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                                         Signature Guaranteed

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                                 ASSIGNMENT FORM
                     To be executed by the Registered Holder
                           In order to Assign Warrants

FOR VALUE RECEIVED,____________________________________ hereby sell, assigns and
transfer unto

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER

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______________________  of the Warrants  represented by this Warrant, and hereby
irrevocably  constitutes  and  appoints   ________________________  Attorney  to
transfer  this  Warrant  on the  books  of  the  Company,  with  full  power  of
substitution in the premises.

Dated:________________                      X__________________________________
                                                (Signature of Registered Holder)

                                            -----------------------------------
                                                  (Signature Guaranteed)

THE SIGNATURE ON THE ASSIGNMENT OR THE PURCHASE FORM MUST CORRESPOND TO THE NAME
AS  WRITTEN  UPON  THE FACE OF THIS  WARRANT  CERTIFICATE  IN EVERY  PARTICULAR,
WITHOUT  ALTERATION  OR  ENLARGEMENT  OR ANY  CHANGE  WHATSOEVER,  AND  MUST  BE
GUARANTEED  BY A  COMMERCIAL  BANK OR  TRUST  COMPANY  OR A  MEMBER  FIRM OF THE
AMERICAN  STOCK  EXCHANGE,  NEW YORK STOCK  EXCHANGE,  PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE.

                      CERTIFICATION OF STATUS OF TRANSFEREE
                TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT

      The undersigned  transferee  hereby certifies to the registered Holder and
to TII Industries,  Inc. that the transferee is an "accredited  investor" within
the meaning of Rule 501 of Regulation D promulgated  under the Securities Act of
1933, as amended.

Dated:________________                      X__________________________________
                                                  (Signature of Transferee)

                                       11

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