Document:

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                                                                     EXHIBIT 4.4

     NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON CONVERSION
     HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
     EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"). THE SECURITIES ARE
     RESTRICTED AND MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED
     EXCEPT IN ACCORDANCE WITH REGULATION S UNDER THE ACT, OR AS PERMITTED
     UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE HARBOR
     THEREFROM.

No._                                                              US $150,000
                                                                      -------

                      ADVANCED TECHNOLOGY INDUSTRIES, INC.

                  9% CONVERTIBLE DEBENTURE DUE AUGUST 20, 2006

     THIS DEBENTURE is one of a duly authorized issue of Debentures of ADVANCED
TECHNOLOGY INDUSTRIES, INC., a corporation duly organized and existing under the
laws of the State of Delaware (the "Company"), designated as its 9% Convertible
Debentures Due August 20, 2006.

     FOR VALUE RECEIVED, the Company promises to pay to MONARCH CAPITAL FUND
LTD., the registered holder hereof (the "Holder"), the principal sum of ONE
HUNDRED FIFTY THOUSAND DOLLARS (US $150,000) on August 20, 2006 (the "Maturity
Date") and to pay interest, on a simple non-compound basis, on the principal sum
outstanding from time to time in arrears upon the earlier of conversion,
redemption or the Maturity Date, as provided herein ("Interest Payment Date") at
the rate of 9% per annum. Accrual of interest shall commence on the first
business day to occur after the date hereof until payment in full of the
principal sum has been made or duly provided for. Subject to the provisions of
Section 4 below, the principal of, and interest on, this Debenture are payable
at the option of the Holder, in shares of Common Stock of the Company, $.0001
par value ("Common Stock"), or in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts, at the address last appearing on the Debenture Register of the
Company as designated in writing by the Holder from time to time.

     This Debenture is being issued pursuant to the terms of the Securities
Purchase Agreement, dated as of even date (the "Securities Purchase Agreement"),
to which the Company and the Holder (or the Holder's predecessor in interest)
are parties. Capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Securities Purchase Agreement.

     This Debenture is subject to the following additional provisions:

     1. The Debentures are issuable in denominations of Fifty Thousand Dollars
(US$50,000) and integral multiples thereof. The Debentures are exchangeable for
an equal aggregate principal amount of Debentures of different authorized
denominations, as requested by the Holders surrendering the same. No service
charge will be made for such registration or transfer or exchange.

     2. The Company shall be entitled to withhold from all payments of principal
of, and interest on, this Debenture any amounts required to be withheld under
the applicable provisions of the United States income tax laws or other
applicable laws at the time of such payments, and Holder shall execute and
deliver all required documentation in connection therewith.

     3. This Debenture has been issued subject to investment representations of
the original purchaser hereof and may be transferred or exchanged only in
compliance with the Securities Act of 1933, as amended (the "Act"), and other
applicable state and foreign securities laws and the terms of the Securities
Purchase Agreement. In the event of any proposed transfer of this Debenture, the
Company may require, prior to issuance of a new Debenture in the name of such
other person, that it receive reasonable transfer documentation including
opinions that the issuance of the Debenture in such other name does not and will
not cause a violation of the Act or any applicable state or foreign securities
laws. Prior to due presentment for transfer of this Debenture, the Company and

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

     4. (a) Subject to Section 4(b), the Holder of this Debenture is entitled,
at its option, to convert at any time the principal amount of this Debenture,
provided that the principal amount is at least US $10,000 (unless if at the time
of such election to convert the aggregate principal amount of all Debentures
registered to the Holder is less than Ten Thousand Dollars (US $10,000), then
the whole amount thereof) and accrued interest, into shares of Common Stock at a
conversion price (the "Conversion Price") for each share of Common Stock equal
to the lesser of (a) seven cents ($.07) as such price may be adjusted as
provided herein (the "Fixed Conversion Price") or (b) 75% of the Market Price on
the Conversion Date (as defined below), as such price may be adjusted as
provided herein (the "Variable Conversion Rate"). For purposes of this Section
4, the Market Price shall be the average of the lowest ten (10) days closing bid
prices (not necessarily consecutive) of the Common Stock for the thirty (30)
Trading Days immediately preceding the Conversion Date, as reported by the
Reporting Service, or, in the event the Common Stock is listed on a stock
exchange or traded on NASDAQ, the Market Price shall be the closing prices on
the exchange on such dates, as reported in the Wall Street Journal.

          (b) In the event that the Conversion Price shall be less than $.07 as
such price may be adjusted as provided herein (the "Redemption Trigger"), the
Holder may convert the principal amount of this Debenture only if the Holder
emails a notice to the Company, ATT: amk@ltdnetwork.com and
samuelsonjim@hotmail.com, advising the Company of its intention to convert all
or a specified amount of the principal amount of this Debenture ("Stated
Amount") within the fourteen (14) day period (the "Redemption Period") after
delivery of such notice ("Notice Date"); provided that the Holder shall not be
entitled to submit a Notice of Conversion (as defined below) until after the
Reply Date (as defined below). Not later than the end of the next business day
following the Notice Date (the "Reply Date"), the Company shall notify the
Holder by email (jfranck@lowelippmann.com.au) whether it elects to redeem the
Stated Amount in cash in lieu of permitting the Holder to so convert ("Reply
Notice"). In the event the Company does not timely deliver a Reply Notice, or
delivers a Reply Notice but elects not to redeem the Stated Amount, it shall not
be permitted to redeem the Stated Amount during the Redemption Period. In the
event the Company elects to redeem the Stated Amount, then thereafter with
respect to each Notice of Conversion delivered during the Redemption Period, the
Company shall pay an amount in immediately available funds (each a "Redemption
Amount") equal to (a) 150% of principal amount of this Debenture that is subject
to conversion in such applicable Notice of Conversion, plus (b) accrued and
unpaid interest with respect to such principal amount up to the Redemption Date,
and shall be paid to the Holder by the close of the third (3rd) business day
following the date on which the Holder faxes or otherwise delivers such Notice
of Conversion to the Company (any such date of redemption, the "Redemption
Date") in accordance with Section 5; provided that the aggregate of all such
principal amounts under all such Notices of Conversion delivered during the
Redemption Period shall not exceed the Stated Amount. In the event the payment
of the Redemption Amount is not timely made on the Redemption Date, any right of
redemption contained in this Section 4(b) shall thereafter permanently terminate
with respect to this Debenture, and the Company shall, with respect to any
conversions submitted during the Redemption Period, cause to be issued to the
Holder 105% of the number of shares of Common Stock otherwise required to be
delivered to the Holder in accordance with Section 4(a) with respect to
conversions of the lesser of (x) the Stated Amount and (y) and the principal
amount of this Debenture requested to be converted as set forth in any Notices
of Conversion. If the Holder does not deliver a Notice of Conversion during the
Redemption Period it must comply with the provisions of this Section 4(b) with
respect to any intended conversions following the Redemption Period. Nothing
contained in this Section 4(b) shall be deemed to obligate the Holder to submit
a Notice of Conversion during the Redemption Period. Furthermore, the Holder may
elect to forgo the redemption right set forth herein, and submit a Notice of
Conversion with a Conversion Price above the Redemption Trigger .

          (c) Conversion shall be effectuated by faxing a Notice of Conversion
to the Company as provided in this Section 4(c). The Notice of Conversion shall
be executed by the Holder of this Debenture and shall evidence such Holder's
intention to convert this Debenture or a specified portion hereof in the form
annexed hereto as Exhibit A. The number of shares of Common Stock to be issued
in payment of any interest shall be determined by dividing the dollar amount of
the interest to be so paid by the Conversion Price on the relevant Interest
Payment Date. No fractional shares of Common Stock or scrip representing
fractions of shares will be issued on conversion, but the number of shares

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issuable shall be rounded to the nearest whole share. The date on which notice
of conversion is given (the "Conversion Date") shall be deemed to be the date on
which the Holder faxes or otherwise delivers the conversion notice ("Notice of
Conversion") to the Company so that it is received by the Company on such
specified date, provided that, if such conversion would convert the entire
remaining principal of this Debenture, the Holder shall deliver to the Company
the original Debentures being converted no later than five (5) business days
thereafter. Facsimile delivery of the Notice of Conversion shall be accepted by
the Company at facsimile number 212-532-2904; Attn: Allan Klepfisz. Certificates
representing Common Stock upon conversion ("Conversion Certificates") will be
delivered to the Holder at the address specified in the Notice of Conversion
(which may be the Holder's address for notices as contemplated by the Securities
Purchase Agreement or a different address), via express courier, by electronic
transfer or otherwise, within three (3) business days (such third business day,
the "Delivery Date") after the Conversion Date. The Holder shall be deemed to be
the holder of the shares issuable to it in accordance with the provisions of
this Section 4(c) on the Conversion Date.

     5. The principal of and interest on this Debenture shall be due and payable
on the Maturity Date, at the option of the Holder, in cash or in Common Stock.
If principal and interest is to be paid in Common Stock as contemplated hereby,
the number of shares of Common Stock to be issued in payment of such principal
and interest shall be determined by dividing the dollar amount of the principal
and interest to be so paid by the Conversion Price on the Maturity Date. All
payments contemplated hereby to be made "in cash" shall be made in immediately
available good funds of United States of America within three (3) business days
of the Interest Payment Date by wire transfer to an account designated in
writing by the Holder to the Company (which account may be changed by notice
similarly given). All payments of cash and each delivery of shares of Common
Stock issuable to the Holder as contemplated hereby shall be made to the Holder
at the address last appearing on the Debenture Register of the Company as
designated in writing by the Holder from time to time; except that the Holder
can designate, by notice to the Company, a different delivery address for any
one or more specific payments or deliveries.

     6. If, for as long as this Debenture remains outstanding, the Company
enters into a merger (other than where the Company is the surviving entity) or
consolidation with another corporation or other entity or a sale or transfer of
all or substantially all of the assets of the Company to another person
(collectively, a "Sale"), the Company will require, in the agreements reflecting
such transaction, that the surviving entity expressly assume the obligations of
the Company hereunder. Notwithstanding the foregoing, if the Company enters into
a Sale and the holders of the Common Stock are entitled to receive stock,
securities or property in respect of or in exchange for Common Stock, then as a
condition of such Sale, the Company and any such successor, purchaser or
transferee will agree that the Debenture may thereafter be converted on the
terms and subject to the conditions set forth above into the kind and amount of
stock, securities or property receivable upon such merger, consolidation, sale
or transfer by a holder of the number of shares of Common Stock into which this
Debenture might have been converted immediately before such merger,
consolidation, sale or transfer, subject to adjustments which shall be as nearly
equivalent as may be practicable. In the event of any such proposed Sale, (i)
the Holder hereof shall have the right to convert by delivering a Notice of
Conversion to the Company within fifteen (15) days of receipt of notice of such
Sale from the Company, and Section 4(b) shall not apply to such conversion.

     7. If, at any time while any portion of this Debenture remains outstanding,
the Company spins off or otherwise divests itself of a part of its business or
operations or disposes of all or of a part of its assets in a transaction (the
"Spin Off") in which the Company, in addition to or in lieu of any other
compensation received and retained by the Company for such business, operations
or assets, causes securities of another entity (the "Spin Off Securities") to be
issued to security holders of the Company, the Company shall cause (i) to be
reserved Spin Off Securities equal to the number thereof which would have been
issued to the Holder had all of the Holder's Debentures outstanding on the
record date (the "Record Date") for determining the amount and number of Spin
Off Securities to be issued to security holders of the Company (the "Outstanding
Debentures") been converted as of the close of business on the trading day
immediately before the Record Date (the "Reserved Spin Off Shares"), and (ii) to
be issued to the Holder on the conversion of all or any of the Outstanding
Debentures, such amount of the Reserved Spin Off Shares equal to (x) the
Reserved Spin Off Shares multiplied by (y) a fraction, of which (I) the
numerator is the principal amount of the Outstanding Debentures then being
converted, and (II) the denominator is the principal amount of the Outstanding
Debentures.

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     8. If, at any time while any portion of this Debenture remains outstanding,
the Company effectuates a stock split or reverse stock split of the Common Stock
or issues a dividend on the Common Stock consisting of shares of Common Stock,
the Fixed Conversion Price, the Redemption Trigger and any other amounts
calculated as contemplated hereby or by any of the other Transaction Agreements
shall be equitably adjusted to reflect such action. By way of illustration, and
not in limitation, of the foregoing, (i) if the Company effectuates a 2:1 split
of the Common Stock, thereafter, with respect to any conversion for which the
Company issues shares after the record date of such split, the Fixed Conversion
Price, the Redemption Trigger and any market price from a date prior to such
split which was used in the calculation of the Conversion Price shall be deemed
to be one-half of what it had been immediately prior to such split; (ii) if the
Company effectuates a 1:10 reverse split of the Common Stock, thereafter, with
respect to any conversion for which the Company issues shares after the record
date of such reverse split, the Fixed Conversion Price, the Redemption Trigger
and any market price from a date prior to such split which was used in the
calculation of the Conversion Price shall be deemed to be ten times what it had
been calculated to be immediately prior to such split; and (iii) if the Company
declares a stock dividend of one share of Common Stock for every 10 shares
outstanding, thereafter, with respect to any conversion for which the Company
issues shares after the record date of such dividend, the Fixed Conversion
Price, the Redemption Trigger and any market price from a date prior to such
split which was used in the calculation of the Conversion Price shall be deemed
to be such amount multiplied by a fraction, of which the numerator is the number
of shares (10 in the example) for which a dividend share will be issued and the
denominator is such number of shares plus the dividend share(s) issuable or
issued thereon (11 in the example).

     9. The Holder of the Debenture, by acceptance hereof, agrees that this
Debenture is being acquired for investment and that such Holder will not offer,
sell or otherwise dispose of this Debenture or the shares of Common Stock
issuable upon conversion thereof except under circumstances which will not
result in a violation of the Act or any applicable state Blue Sky or foreign
laws or similar laws relating to the sale of securities.

     10. This Debenture shall be governed by and construed in accordance with
the laws of the State of New York. The Company and, by acceptance of this
Debenture, the Holder consents to the exclusive 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 objection based on FORUM
NON COVENIENS, to the bringing of any such proceeding in such jurisdictions. To
the extent determined by such court, the Company shall reimburse the Holder for
any reasonable legal fees and disbursements incurred by the Holder in
enforcement of or protection of any of its rights under any of this Debenture.

     11. The Company and, by acceptance of this Debenture, the Holder hereby
waive a trial by jury in any action, proceeding or counterclaim brought by
either of the Parties hereto against the other in respect of any matter arising
out of or in connection with this Debenture.

     12. The following shall constitute an "Event of Default":

          a.   The Company shall default in the payment of principal or interest
               on this Debenture or any Redemption Amount due hereunder or any
               other amount due under a Transaction Agreement and, in any such
               instance, the same shall continue for a period of five (5)
               business days; or

          b.   Any of the representations or warranties made by the Company
               herein, in the Securities Purchase Agreement or any of the other
               Transaction Agreements shall be false or misleading in any
               material respect at the time made; or

          c.   In addition to the terms of the Securities Purchase Agreement,
               the Company fails to authorize or to cause its Transfer Agent to
               issue shares of Common Stock upon exercise by the Holder of the
               conversion rights of the Holder in accordance with the terms of
               this Debenture, fails to transfer or to cause its Transfer Agent
               to transfer any certificate for shares of Common Stock issued to
               the Holder upon conversion of this Debenture and when required by
               this Debenture or the Registration Rights Agreement, and such
               transfer is otherwise lawful, or fails to remove any restrictive
               legend on any certificate or fails to cause its Transfer Agent to
               remove such restricted legend, in each case where such removal is
               lawful, as and when required by this Debenture, the Securities
               Purchase Agreement or the Registration Rights Agreement, and any
               such failure shall continue uncured for thirty (30) days; or

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          d.   The Company shall fail to perform or observe, in any material
               respect, any other covenant, term, provision, condition,
               agreement or obligation of any Debenture in this series and such
               failure shall continue uncured for a period of thirty (30) days
               after written notice from the Holder of such failure; or

          e.   The Company shall fail to perform or observe, in any material
               respect, any covenant, term, provision, condition, agreement or
               obligation of the Company under the Securities Purchase Agreement
               (other than Section 5 thereof) and such failure shall continue
               uncured for a period of thirty (30) days after written notice
               from the Holder of such failure; or

          f.   The Company shall (1) admit in writing its inability to pay its
               debts generally as they mature; (2) make an assignment for the
               benefit of creditors or commence proceedings for its dissolution;
               or (3) apply for or consent to the appointment of a trustee,
               liquidator or receiver for its or for a substantial part of its
               property or business; or

          g.   A trustee, liquidator or receiver shall be appointed for the
               Company or for a substantial part of its property or business
               without its consent and shall not be discharged within sixty (60)
               days after such appointment; or

          h.   Any governmental agency or any court of competent jurisdiction at
               the instance of any governmental agency shall assume custody or
               control of the whole or any substantial portion of the properties
               or assets of the Company and shall not be dismissed within sixty
               (60) days thereafter; or

          h.   Any money judgment, writ or warrant of attachment, or similar
               process in excess of Five Hundred Thousand ($500,000) Dollars in
               the aggregate shall be entered or filed against the Company or
               any of its properties or other assets and shall remain unpaid,
               unvacated, unbonded or unstayed for a period of sixty (60) days
               or in any event later than five (5) days prior to the date of any
               proposed sale thereunder; or

          i.   Bankruptcy, reorganization, insolvency or liquidation proceedings
               or other proceedings for relief under any bankruptcy law or any
               law for the relief of debtors shall be instituted by or against
               the Company and, if instituted against the Company, shall not be
               dismissed within sixty (60) days after such institution or the
               Company shall by any action or answer approve of, consent to, or
               acquiesce in any such proceedings or admit the material
               allegations of, or default in answering a petition filed in any
               such proceeding; or

          j.   The Company shall have the Common Stock suspended from trading
               on, or delisted from, the Principal Trading Market for in excess
               of ten (10) Trading Days.

If an Event of Default shall have occurred, then, or at any time thereafter, and
in each and every such case, unless such Event of Default shall have been cured
or waived in writing by the Holder (which waiver shall not be deemed to be a
waiver of any subsequent default) at the option of the Holder and in the
Holder's sole discretion, the Holder may consider this Debenture immediately due
and payable (and the Maturity Date shall be accelerated accordingly), without
presentment, demand, protest or notice of any kinds, all of which are hereby
expressly waived, anything herein or in any note or other instruments contained
to the contrary notwithstanding, and the Holder may immediately enforce any and
all of the Holder's rights and remedies provided herein or any other rights or
remedies afforded by law.

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     13. Nothing contained in this Debenture shall be construed as conferring
upon the Holder the right to vote or to receive dividends or to consent or
receive notice as a shareholder in respect of any meeting of shareholders or any
rights whatsoever as a shareholder of the Company, unless and to the extent
converted in accordance with the terms hereof.

     14. Notwithstanding any other provision hereof or of any of the other
Transaction Agreements, in no event (except (i) as specifically provided herein
as an exception to this provision, or (ii) while there is outstanding a tender
offer for any or all of the shares of the Common Stock) shall the Holder be
entitled to convert any portion of this Debenture, or shall the Company have the
obligation to convert such Debenture (and the Company shall not have the right
to pay interest hereon in shares of Common Stock) to the extent that, after such
conversion or issuance of stock in payment of interest, the sum of (1) the
number of shares of Common Stock beneficially owned by the Holder and its
Affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unconverted portion of the Debentures or
other convertible securities or of the unexercised portion of warrants or other
rights to purchase Common Stock), and (2) the number of shares of Common Stock
issuable upon the conversion of the Debentures with respect to which the
determination of this proviso is being made, would result in beneficial
ownership by the Holder and its Affiliates of more than 4.99% of the outstanding
shares of Common Stock (after taking into account the shares to be issued to the
Holder upon such conversion). For purposes of the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, except as otherwise
provided in clause (1) of such sentence. The Holder, by its acceptance of this
Debenture, further agrees that if the Holder transfers or assigns any of the
Debentures to a party who or which would not be considered such an Affiliate,
such assignment shall be made subject to the transferee's or assignee's specific
agreement to be bound by the provisions of this Section 14 as if such transferee
or assignee were the original Holder hereof. Nothing herein shall preclude the
Holder from disposing of a sufficient number of other shares of Common Stock
beneficially owned by the Holder so as to thereafter permit the continued
conversion of this Debenture.

     15. Payment of this Debenture is secured pursuant to the terms of the
Security Agreement, dated July 19, 2005 (the "Security Agreement"), executed by
the Company, as debtor, in favor of the Collateral Agent therein, for the
benefit of the Lender and the other lenders thereto. The terms of the Security
Agreement are incorporated herein by reference.

     16. In the event for any reason, any payment by or act of the Company or
the Holder shall result in payment of interest which would exceed the limit
authorized by or be in violation of the law of the jurisdiction applicable to
this Debenture, then IPSO FACTO the obligation of the Company to pay interest or
perform such act or requirement shall be reduced to the limit authorized under
such law, so that in no event shall the Company be obligated to pay any such
interest, perform any such act or be bound by any requirement which would result
in the payment of interest in excess of the limit so authorized. In the event
any payment by or act of the Company shall result in the extraction of a rate of
interest in excess of a sum which is lawfully collectible as interest, then such
amount (to the extent of such excess not returned to the Company) shall, without
further agreement or notice between or by the Company or the Holder, be deemed
applied to the payment of principal, if any, hereunder immediately upon receipt
of such excess funds by the Holder, with the same force and effect as though the
Company had specifically designated such sums to be so applied to principal and
the Holder had agreed to accept such sums as an interest-free prepayment of this
Debenture. If any part of such excess remains after the principal has been paid
in full, whether by the provisions of the preceding sentences of this Section or
otherwise, such excess shall be deemed to be an interest-free loan from the
Company to the Holder, which loan shall be payable immediately upon demand by
the Company. The provisions of this Section shall control every other provision
of this Debenture.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

Dated:December ___ , 2005

                                ADVANCED TECHNOLOGY INDUSTRIES, INC.

                                By: ______________________________________

                                      Allan Klepfisz
                                    ------------------
                                     (Print Name)

<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

   (To be Executed by the Registered Holder in order to Convert the Debenture)

     The undersigned hereby irrevocably elects to convert $ ________________ of
the principal amount of the above Debenture No. ___ into shares of Common Stock
of ADVANCED TECHNOLOGY INDUSTRIES, INC. (the "Company") according to the
conditions hereof, as of the date written below.

Date of Conversion* _________________________________________

Accrued Interest $__________________________

Applicable Conversion Price ____________________________________________________

Signature ______________________________________________________________________
                              [Name]

Address: _______________________________________________________________________

         _______________________________________________________________________<PAGE>
                                                                     EXHIBIT 4.5

                                     WARRANT

     THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
     1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
     SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
     STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER
     EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
     REQUIRED.

                      ADVANCED TECHNOLOGY INDUSTRIES, INC.

                          COMMON STOCK PURCHASE WARRANT

     1. Issuance; Certain Definitions. In consideration of good and valuable
consideration, the receipt of which is hereby acknowledged by ADVANCED
TECHNOLOGY INDUSTRIES, INC., a Delaware corporation (the "Company"), HARBORVIEW
MASTER FUND L.P., or registered assigns (the "Holder") is hereby granted the
right to purchase at any time during the period (the "Exercise Period") from the
date hereof until 5:00 P.M., New York City time, on the second anniversary of
the Effective Date (the "Expiration Date"), 2,142,857 fully paid and
nonassessable shares of the Company's Common Stock (the "Common Stock"), at an
exercise price per share (the "Exercise Price") of $0.10 per share, as such
price may be adjusted as provided herein.

     This Warrant is being issued pursuant to the terms of the Securities
Purchase Agreement, dated of even date (the "Securities Purchase Agreement"), to
which the Company and the Holder (or the Holder's predecessor in interest) are
parties. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Securities Purchase Agreement.

     2. Exercise of Warrants.

          2.1 General.

          (a) This Warrant is exercisable in whole or in part at any time during
the Exercise Period. Such exercise shall be effectuated by submitting to the
Company (either by delivery to the Company or by facsimile transmission as
provided in Section 8 hereof) a completed and duly executed Notice of Exercise
(substantially in the form attached to this Warrant Certificate) as provided in
this paragraph and by delivering to the Company this Warrant Certificate,
together with appropriate payment of the Exercise Price for the shares of Common
Stock purchased (the date all such deliveries are completed, the "Exercise
Date"); provided that the Holder will only be able to exercise this Warrant if

<PAGE>

such exercise is exempt from the registration requirements of the Act, as
defined below, (and the Company has received such information as the Company may
reasonable request to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Act). The Notice of Exercise shall be executed by the Holder
of this Warrant and shall indicate the number of shares then being purchased
pursuant to such exercise. Upon surrender of this Warrant Certificate, together
with appropriate payment of the Exercise Price for the shares of Common Stock
purchased, the Holder shall be entitled to receive a certificate or certificates
for the shares of Common Stock so purchased. This Warrant shall expire and be of
no force or effect from and after the Expiration Date.

          (b) The Holder shall be deemed to be the holder of the shares issuable
to it in accordance with the provisions of this Section 2.1 on the Exercise
Date.

          (c) The Holder shall pay the Exercise Price in cash; provided that in
the event that the Registration Statement is not effective on any Exercise Date
subsequent to the one year anniversary of the date hereof (other than during a
Permitted Suspension Period), then the Holder may pay the Exercise Price with
respect to the shares of Common Stock set forth in the Notice of Exercise
delivered in connection with such Exercise Date, pursuant to a cashless exercise
by surrendering this Warrant to the Company together with a notice of cashless
exercise, in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:

                         X = Y (A-B)/A
         where:
                         X = the number of Warrant Shares to be
                         issued to the Holder.

                         Y = the number of Warrant Shares with
                         respect to which this Warrant is being
                         exercised.

                         A = the average of the closing sale prices
                         of the Common Stock for the five (5) Trading
                         Days immediately prior to (but not
                         including) the Exercise Date.

                         B = the Exercise Price.

For purposes of Rule 144 promulgated under the Act, it is intended, understood
and acknowledged that the Warrant Shares issued in a cashless exercise
transaction shall be deemed to have been acquired by the Holder, and the holding
period for the Warrant Shares shall be deemed to have been commenced, on the
issue date. If the Registration Statement has been declared effective on or
before the one year anniversary of the date hereof, and is effective on any
Exercise Date subsequent to the one year anniversary of the date hereof (other
than during a Permitted Suspension Period), the Holder shall not have a right of
cashless exercise, but shall pay the Exercise Price in cash as set forth in
subsection 9(a) above.

                                       2
<PAGE>

          (d) If the Average Price is equal to or greater than $0.50 during any
period of twenty (20) consecutive Trading Day and the Closing Price is equal to
or greater than $0.50 for a least ten (10) Trading Days during such period, then
on the fifteenth (15th) Trading Day following the end of such period, and
delivery of written notice thereof from Company to Holder, the Exercise Price
shall be adjusted to $0.25 (the "Adjusted Exercise Price"), as such price may be
adjusted as provided herein. For purposes of this Section 2.1(d), (i) Average
Price shall be the average closing bid prices of the Common Stock during the
applicable period, as reported by the Reporting Service, or, in the event the
Common Stock is listed on a stock exchange or traded on NASDAQ, the Average
Price shall be such closing prices on such exchange or NASDAQ, as reported in
the Wall Street Journal and (ii) Closing Bid Price shall be the closing bid
price of the Common Stock on the applicable date, as reported by the Reporting
Service, or, in the event the Common Stock is listed on a stock exchange or
traded on NASDAQ, the Closing Bid Price shall be such closing price on such
exchange or NASDAQ, as reported in the Wall Street Journal.

          2.2 Limitation on Exercise. Notwithstanding the provisions of this
Warrant, the Securities Purchase Agreement or of the other Transaction
Agreements, in no event (except (i) as specifically provided in this Warrant as
an exception to this provision, (ii) while there is outstanding a tender offer
for any or all of the shares of the Common Stock, or (iii) at the Holder's
option, on at least sixty-five (65) days' advance written notice from the
Holder) shall the Holder be entitled to exercise this Warrant, or shall the
Company have the obligation to issue shares upon such exercise of all or any
portion of this Warrant to the extent that, after such exercise the sum of (1)
the number of shares of Common Stock beneficially owned by the Holder and its
Affiliates (other than shares of Common Stock which may be deemed beneficially
owned through the ownership of the unexercised portion of the Warrants or other
rights to purchase Common Stock or through the ownership of the unconverted
portion of the Debentures or other convertible securities), and (2) the number
of shares of Common Stock issuable upon the exercise of the Warrants with
respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its Affiliates of more than 4.99% of
the outstanding shares of Common Stock (after taking into account the shares to
be issued to the Holder upon such exercise). For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended
(the "1934 Act"), except as otherwise provided in clause (1) of such sentence.
The Holder, by its acceptance of this Warrant, further agrees that if the Holder
transfers or assigns any of the Warrants to a party who or which would not be
considered such an Affiliate, such assignment shall be made subject to the
transferee's or assignee's specific agreement to be bound by the provisions of
this Section 2.2 as if such transferee or assignee were the original Holder
hereof.

     3. Reservation of Shares. The Company hereby agrees that from the date
hereof to the Expiration Date there shall be reserved for issuance upon exercise
of this Warrant such number of shares of the Common Stock as shall be required
for issuance upon exercise of this Warrant (the "Warrant Shares").

                                       3
<PAGE>

     4. Mutilation or Loss of Warrant. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and (in the case of loss, theft or destruction) receipt of reasonably
satisfactory indemnification, and (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will execute and deliver a new Warrant
of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant
shall thereupon become void.

     5. Rights of the Holder. The Holder shall not, by virtue hereof, be
entitled to any rights of a stockholder in the Company, either at law or equity,
and the rights of the Holder are limited to those expressed in this Warrant and
are not enforceable against the Company except to the extent set forth herein.

     6. Protection Against Dilution and Other Adjustments.

          6.1 Adjustment Mechanism. If an adjustment of the Exercise Price is
required pursuant to Section 6.2, the Holder shall be entitled to purchase such
number of additional shares of Common Stock as will cause the total number of
shares of Common Stock the Holder is entitled to purchase pursuant to this
Warrant, multiplied by the adjusted Exercise Price per share, to equal the
dollar amount of the total number of shares of Common Stock Holder is entitled
to purchase before adjustment multiplied by the total Exercise Price before
adjustment.

          6.2 Capital Adjustments. If, at any time while this Warrant remains
outstanding, the Company effectuates a stock split or reverse stock split of the
Common Stock or issues a dividend on the Common Stock consisting of shares of
Common Stock, the Exercise Price, Adjusted Exercise Price and any other amounts
calculated as contemplated hereby shall be equitably adjusted to reflect such
action. By way of illustration, and not in limitation, of the foregoing, (i) if
the Company effectuates a 2:1 split of the Common Stock, thereafter, with
respect to any exercise for which the Company issues shares after the record
date of such split, the Exercise Price, Adjusted Exercise Price and any market
price from a date prior to such split which was used in the calculation of the
Average Price or Closing Bid Price shall be deemed to be one-half of what it had
been immediately prior to such split; (ii) if the Company effectuates a 1:10
reverse split of the Common Stock, thereafter, with respect to any exercise for
which the Company issues shares after the record date of such reverse split, the
Exercise Price, Adjusted Exercise Price and any market price from a date prior
to such split which was used in the calculation of the Average Price or Closing
Bid Price shall be deemed to be ten times what it had been calculated to be
immediately prior to such split; and (iii) if the Company declares a stock
dividend of one share of Common Stock for every 10 shares outstanding,
thereafter, with respect to any exercise for which the Company issues shares
after the record date of such dividend, the Exercise Price, Adjusted Exercise
Price and any market price from a date prior to such split which was used in the
calculation of the Average Price or Closing Bid Price shall be deemed to be such
amount multiplied by a fraction, of which the numerator is the number of shares
(10 in the example) for which a dividend share will be issued and the
denominator is such number of shares plus the dividend share(s) issuable or
issued thereon (11 in the example).

                                       4
<PAGE>

          6.3 Merger, Consolidation, Etc. If, for as long as this Warrant
remains outstanding, the Company enters into a merger (other than where the
Company is the surviving entity) or consolidation with another corporation or
other entity or a sale or transfer of all or substantially all of the assets of
the Company to another person (collectively, a "Sale"), and the holders of the
Common Stock are entitled to receive stock, securities or property in respect of
or in exchange for Common Stock, then as a condition of such Sale, the Company
and any such successor, purchaser or transferee will agree that this Warrant may
thereafter be converted on the terms and subject to the conditions set forth
above into the kind and amount of stock, securities or property receivable upon
such merger, consolidation, sale or transfer by a holder of the number of shares
of Common Stock into which this Warrant might have been converted immediately
before such merger, consolidation, sale or transfer, subject to adjustments
which shall be as nearly equivalent as may be practicable.

          6.3 Adjustment for Spin Off. If, for any reason, prior to the exercise
of this Warrant in full, the Company spins off or otherwise divests itself of a
part of its business or operations or disposes all or a part of its assets in a
transaction (the "Spin Off") in which the Company does not receive compensation
for such business, operations or assets, but causes securities of another entity
(the "Spin Off Securities") to be issued to security holders of the Company,
then

          (a) the Company shall cause (i) to be reserved Spin Off Securities
     equal to the number thereof which would have been issued to the Holder had
     all of the Holder's unexercised Warrants outstanding on the record date
     (the "Record Date") for determining the amount and number of Spin Off
     Securities to be issued to security holders of the Company (the
     "Outstanding Warrants") been exercised as of the close of business on the
     Trading Day immediately before the Record Date (the "Reserved Spin Off
     Shares"), and (ii) to be issued to the Holder on the exercise of all or any
     of the Outstanding Warrants, such amount of the Reserved Spin Off Shares
     equal to (x) the Reserved Spin Off Shares multiplied by (y) a fraction, of
     which (I) the numerator is the amount of the Outstanding Warrants then
     being exercised, and (II) the denominator is the amount of the Outstanding
     Warrants; and

          (b) the Exercise Price on the Outstanding Warrants shall be adjusted
     immediately after consummation of the Spin Off by multiplying the Exercise
     Price by a fraction (if, but only if, such fraction is less than 1.0), the
     numerator of which is the average closing bid price of the Common Stock for
     the five (5) Trading Days immediately following the fifth Trading Day after
     the Record Date, and the denominator of which is the average Closing Bid
     Price of the Common Stock on the five (5) Trading Days immediately
     preceding the Record Date; and such adjusted Exercise Price shall be deemed
     to be the Exercise Price with respect to the Outstanding Warrants after the
     Record Date.

     7. Transfer to Comply with the Securities Act; Registration Rights.

          7.1 Transfer. This Warrant has not been registered under the
Securities Act of 1933, as amended, (the "Act") and has been issued to the
Holder for investment and not with a view to the distribution of either the
Warrant or the Warrant Shares. Except for transfers to officers, employees and
Affiliates of the Holder, neither this Warrant nor any of the Warrant Shares or
any other security issued or issuable upon exercise of this Warrant may be sold,
transferred, pledged or hypothecated in the absence of an effective registration
statement under the Act relating to such security or an opinion of counsel
satisfactory to the Company that registration is not required under the Act.
Each certificate for the Warrant, the Warrant Shares and any other security
issued or issuable upon exercise of this Warrant shall contain a legend on the
face thereof, in form and substance satisfactory to counsel for the Company,
setting forth the restrictions on transfer contained in this Section.

                                       5
<PAGE>

          7.2 Registration Rights. (a) The Holder shall have registration rights
with respect to the Warrant Shares as set forth in the Securities Purchase
Agreement and the Registration Rights Agreement. The Holder's rights under this
Section 7.2 shall expire at such time as the Holder can sell all of the Warrant
Shares held by such Holder under Rule 144 without volume or other restrictions
or limit.

     8. Notices. Any notice or other communication required or permitted
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage pre-paid. Any such notice shall be deemed given when so
delivered personally, telegraphed, telexed or sent by facsimile transmission,
or, if mailed, two days after the date of deposit in the United States mails, as
follows:

          (i)  if to the Company, to:

                 Advanced Technology Industries, Inc..
                 211 Madison Avenue, #28B
                 New York, New York 10016
                 Attn:  Allan Klepfisz
                 Telephone No.:  (212) 532-2736
                 Telecopier No.:  (212) 532-2904

               With a  copy to:

                 Anthony J. Norris , Esq.
                 Ropes & Gray LLP
                 45 Rockefeller Plaza
                 New York, NY 10111
                 Tel: 212-841-0659
                 Fax: 212-841-5725

          (ii) if to the Holder, to:

                 Harbor House
                 Waterfront Drive
                 Road Town, Tortola
                 British Virgin Islands
                 Telephone No.: (284) 494-4770
                 Telecopier No.: (284) 494-4771

                                       6
<PAGE>

                 with a copy to:

                 Krieger & Prager LLP, Esqs.
                 39 Broadway
                 Suite 1440
                 New York, NY 10006
                 Attn: Samuel M. Krieger, Esq.
                 Telephone No.: (212) 363-2900
                 Telecopier No.  (212) 363-2999

Any party may give notice in accordance with this Section to the other parties
designate to another address or person for receipt of notices hereunder.

     9. Supplements and Amendments; Whole Agreement. This Warrant may be amended
or supplemented only by an instrument in writing signed by the Holder and the
Company. This Warrant contains the full understanding of the Holder and the
Company with respect to the subject matter hereof and thereof and there are no
representations, warranties, agreements or understandings other than expressly
contained herein and therein.

     10. Governing Law. This Warrant shall be deemed to be a contract made under
the laws of the State of New York for contracts to be wholly performed in such
state and without giving effect to the principles thereof regarding the conflict
of laws. The Company and, by its acceptance of this Warrant, the Holder each
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 and hereby waives, to the maximum extent permitted by law, any
objection, including any objection based on FORUM NON CONVENIENS, to the
bringing of any such proceeding in such jurisdictions. To the extent determined
by such court, the Company shall reimburse the Holder for any reasonable legal
fees and disbursements incurred by the Holder in enforcement of or protection of
any of its rights under this Warrant.

     11. Jury Trial Waiver. The Company and, by its acceptance of this Warrant,
the Holder hereby waive a trial by jury in any action, proceeding or
counterclaim brought by either of the Parties hereto against the other in
respect of any matter arising out or in connection with this Warrant.

     12. Descriptive Headings. Descriptive headings of the several Sections of
this Warrant are inserted for convenience only and shall not control or affect
the meaning or construction of any of the provisions hereof.

                                       7
<PAGE>

     IN WITNESS WHEREOF, the Company has executed this Warrant as of the ___ day
of December, 2005.

                               ADVANCED TECHNOLOGY INDUSTRIES, INC.

                               By:_______________________________________
                               Title: President

<PAGE>

                          NOTICE OF EXERCISE OF WARRANT

     The undersigned hereby irrevocably elects to exercise the right,
represented by the Warrant Certificate dated as of _______________, ____, to
purchase ____________ shares of the Common Stock of ADVANCED TECHNOLOGY
INDUSTRIES, INC., and tenders herewith payment in accordance with Section 1 of
said Common Stock Purchase Warrant.

__    CASH: $___________________________ = (Exercise Price x Exercise Shares)

          Payment is being made by:
             __   enclosed check
             __   wire transfer
             __   other

__    CASHLESS EXERCISE

          Net number of Warrant Shares to be issued to Holder:     _________*

          * based on:  Current Market Value - (Exercise Price x Exercise Shares)
                       ---------------------------------------------------------
                                      Market Price of Common Stock
          where:
          Market Price of Common Stock ["MP"]         =        $_______________
          Current Market Value [MP x Exercise Shares] =        $_______________

     It is the intention of the Holder to comply with the provisions of Section
2.2 of the Warrant regarding certain limits on the Holder's right to exercise
thereunder.

     To the extent that, pursuant to the exercise effected hereby, the Holder
would have more shares than permitted under said Section, this notice should be
amended and revised, ab initio, to refer to the exercise which would result in
the issuance of shares consistent with such provision. Any exercise above such
amount is hereby deemed void and revoked.

     Please deliver the stock certificate to:

Dated:

[Name of Holder]

By:____________________________

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