Document:

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EXHIBIT 4.2

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.

THIS DEBENTURE IS SUBORDINATED TO THE ISSUER'S PRESENT OR FUTURE SENIOR DEBT,
AS DEFINED AND SET FORTH IN THE SECURITIES PURCHASE AGREEMENT DATED JUNE 11,
2001 AMONG DIMENSIONAL PARTNERS, L.P., DIMENSIONAL PARTNERS, LTD. AND THE
ISSUER, AND THE SUBORDINATION AGREEMENT ATTACHED THERETO.

                8 1/2% SUBORDINATED SECURED CONVERTIBLE DEBENTURE
                                DUE JUNE 11, 2004

$__________                                                      JUNE 11, 2001

            1. CONSIDERATION. For value received, FLOUR CITY INTERNATIONAL,
INC., a Nevada corporation (the "undersigned" or the "Company"), hereby
promises to pay to the order of _______________, a _________ ___________, at
its offices located at _________________________ 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, the principal amount of ____________________ Dollars, and to pay
interest (computed on the basis of a 360-day year and the actual number of
days elapsed) on the unpaid principal amount hereof at the rate of eight and
one-half percent (8 1/2%) per annum. The undersigned promises to pay the said
principal sum and interest in accordance with the terms of this Debenture.

            2. PAYMENT. Until this Debenture is completely retired, the
undersigned shall make payments of accrued interest on this Debenture on the
first day of August, November, February and May in each year (commencing with
August 1, 2001), computed at the rate of eight and one-half percent (8 1/2%)
per annum on the unpaid principal balance of this Debenture for the period
from the date of this Debenture until the date of such interest payment. 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,
the due date hereof shall be extended to the next succeeding business day.
All payments received by the holder shall be applied first to the payment of
all accrued interest payable hereunder. On June 11, 2004 (the "Maturity
Date"), the undersigned shall pay the holder all unpaid principal and
interest on this Debenture.

      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 the Debenture may

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be made prior to the Maturity Date by the Company without the consent of the
Registered Holder, except as otherwise provided herein. Interest on the
indebtedness (including accrued but unpaid interest) evidenced by this
Debenture after default or maturity, accelerated or otherwise, shall be due
and payable at the rate of ten and one-half percent (10 1/2%) per annum,
subject to the limitations of applicable law.

            3. SUBORDINATION. Holder agrees that the payment of principal,
interest and all other charges with respect to the Debenture is expressly
subordinated in right of payment to the prior payment in cash and
satisfaction in full of all Senior Debt (as defined below) on the terms and
subject to the conditions set forth in the form of Subordination Agreement
attached hereto as Exhibit A ("Subordination Agreement"). As used herein,
"Senior Debt" and "Trade Debt" shall have the meaning attributed to such
terms in the Subordination Agreement. Purchasers shall execute Subordination
Agreements from time to time with any and all holders of Senior Debt as
requested by the Company; provided that the execution of such agreements
shall not be required to effect the subordination of the indebtedness
represented by the Debenture to any Senior Debt on the terms set forth in the
Subordination Agreement, if identified as such by the Company to the
Purchasers, such holders being intended beneficiaries of this Agreement. The
Debentures shall be senior to all other classes of equity of the Company and
shall rank PARI PASSU with or senior to Trade Debt of the Company incurred in
the ordinary course of business and all other indebtedness of the Company
other than Senior Debt.

            4. SECURITY AGREEMENT. This Debenture is secured by the Guaranty
of even date herewith by Flour City Architectural Metals, Inc. (the "Domestic
Operating Sub") in favor of the holders of this Debenture, in the form
attached as Exhibit B (the "Guaranty"), the Junior Security Agreement of even
date herewith between the Company and the holders, in the form attached as
Exhibit C (the "Company Security Agreement"), and the Junior Security
Agreement of even date herewith between the Domestic Operating Sub and the
holders, in the form attached as Exhibit D (the "Subsidiary Security
Agreement, and, together with the Guaranty and the Company Security
Agreement, the "Security Agreements"). Reference is hereby made to the
Security Agreements for a description of the nature and extent of the
security for this Debenture and the rights with respect to such security of
the holder of this Debenture.

            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 June 11, 2001, by and between the Company and the Purchasers
identified therein (the "Securities Purchase Agreement"). Pursuant to the
Securities Purchase Agreement, the Company issued an aggregate of $2,500,000
principal amount of the Debentures and warrants (the "Warrants") to purchase
an initial aggregate number of 389,916 shares (as such number may be adjusted
pursuant to the terms of the Warrants) of the Company's Common Stock, par
value $.0001 per share (the "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. The Debentures, together with any debentures from time to time
issued in replacement

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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 (which
portion shall be, subject to Section 6(i) hereof, no less than $500,000 in
principal amount) of the outstanding principal amount of this Debenture,
together with any accrued but unpaid interest thereon (which accrued but
unpaid interest shall be considered capitalized for these purposes), into
such number of shares of Common Stock (the shares of Common Stock issuable
upon conversion of this Debenture are hereinafter referred to as the
"Conversion Shares") as shall equal the quotient obtained by dividing (x) the
principal amount (including any capitalized interest) 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 $3.50, subject to adjustment as set forth herein.

                  (c) Subject to and in compliance with the provisions
hereof, if, while this Debenture is outstanding, the closing price of the
Company's Common Stock (as defined below) shall equal or exceed $10.00 per
share for each day of any period of thirty (30) consecutive trading days,
then the Company shall have the one-time option (the "Mandatory Conversion
Option") for ten days after the end of such thirty-day period to convert up
to 60% of the outstanding principal amount of this Debenture into such number
of 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. The Company shall exercise the Mandatory Conversion Option
by means of giving written notice to the Registered Holder of this Debenture
and such Registered Holder shall promptly surrender possession of this
Debenture upon receipt of such written notice and such conversion transaction
shall be subject to the provisions concerning conversion contained herein and
the other Primary Documents. Upon an exercise of the Mandatory Conversion
Option, any accrued but unpaid interest with respect to the Debentures to be
converted shall be paid by the Company simultaneously with such conversion.

            The "closing price of the Common Stock" 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 Stock Market, the
reported closing price for the Common Stock as reported by Bloomberg, L.P.
("Bloomberg") or The Wall Street Journal (the "Journal") on such day (or, if
not so reported, as otherwise reported by The Nasdaq Small Cap Market), (b)
if the Common Stock is listed on either the American Stock Exchange or New
York Stock Exchange, the last reported sales price for the Common Stock on
such exchange on such day as reported by Bloomberg or the Journal or (c) if
no such prices are reported for the Common Stock by Bloomberg or the Journal,
then the average of such prices of any market makers for such security as
reported in the "pink sheets" by the National Quotation Bureau, Inc. "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

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market on which the Common Stock is then being traded.

                  (d) The Registered Holder shall exercise its right to
convert this Debenture by faxing an executed and completed Notice of
Conversion in the form attached hereto to the Company, and delivering within
three (3) business days thereafter, the original Notice of Conversion (and
the related original certificate representing this Debenture) to the Company
by hand delivery or by express courier, duly endorsed. Each date on which a
Notice of Conversion is faxed in accordance with the provisions hereof shall
be deemed a "Conversion Date." The Company will transmit the certificates
representing the Common Stock issuable upon conversion of this Debenture
(together with the certificates representing any portion of this Debenture
not so converted) to the Registered Holder via express courier as soon as
practicable, but in all events no later than three (3) business days after
the Conversion Date. Any conversion of the Debentures shall be deemed to have
been made immediately prior to the close of business on the Conversion Date.

                  (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 effective date of conversion.
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
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 this Debenture. Instead of any fractional share of Common
Stock which would otherwise be deliverable upon the conversion of this
Debenture, the Company shall pay to the holder an amount in cash (computed to
the nearest cent) equal to the closing price of the Common Stock on the
trading date immediately preceding the date of the conversion 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 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) In no event shall the Holder be permitted to convert
this Debenture for any shares of Common Stock in excess of the number of such
shares, upon the conversion of which, the number of shares of Common Stock to
be issued pursuant to the conversion of any portion of the Debentures, when
added to the number of shares of Common Stock issued pursuant all prior
conversions of any Debentures and any other issuances of Common Stock
required to be aggregated with such shares in respect of the stockholder vote
requirements set forth in Nasdaq National Market Rule 4310(c)(25), would
equal or exceed twenty percent (20%) of the Common Stock or voting

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power outstanding on the date of issuance of the Debentures and the Warrants
(adjusted for events of the type described in Sections 12(a), (b), (c) or (d)
hereof) as determined pursuant to Nasdaq National Market rules (the "Cap
Amount"). If the Holder is prohibited as a result of this provision from
converting this Debenture into the total number of shares of Common Stock for
which it could otherwise be converted, the Holder shall, notwithstanding any
other provisions of this Debenture, be entitled to partially convert this
Debenture into the maximum number of shares of Common Stock permissible in
accordance with this provision, and this Debenture shall otherwise be
unaffected. Such limitation shall not apply to conversions if, prior to such
conversion the Company has obtained approval of the holders of a majority of
the Company's outstanding Common Stock for the issuance of such shares of
Common Stock in excess of the Cap Amount. The Company agrees to use its best
efforts to authorize and obtain such stockholder approval for the issuance of
the Common Stock issuable upon conversion of the Debentures and upon exercise
of the Warrants, if and to the extent such vote may become required, by
virtue of adjustments to the conversion price herein provided, in compliance
with Nasdaq National Market rules as set forth above.

            7. REDEMPTION BY COMPANY. If, while this Debenture is
outstanding, there shall occur a Change in Control of the Company (as defined
below), then, at the sole 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 100% of the aggregate principal and accrued but
unpaid 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) (excluding persons who on the date hereof are beneficial owners of
at least 35% of the shares of the Company's voting stock and affiliates of
such persons) shall 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 (as defined
below) 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.

            8.    COVENANTS.

                  (a) Subject to the other provisions of this Debenture, the
Company at all times will, and will cause its subsidiaries to, maintain their
corporate existence and right to carry on their business and will duly
procure all necessary renewals and extensions thereof and use their best
efforts to maintain, preserve and renew all of their rights, powers,
privileges and franchises; PROVIDED, HOWEVER, that nothing herein contained
shall be construed to prevent the Company from

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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.

                  (b) The Company will at no time during normal business
hours close its stock transfer books against the transfer of any shares of
Common Stock issued or issuable upon the conversion of the Debentures or the
exercise of the Warrants in any manner which interferes with the timely
conversion of such Debentures or the exercise of such Warrants except in
compliance with the terms and conditions of the Debentures or applicable laws.

                  (c) As used in this Debenture, the term "Primary Documents"
shall have the meaning set forth in the Securities Purchase Agreement. 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 any of the
Primary Documents 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 Primary
Documents and in the taking of all such action as may be reasonably necessary
in order to protect the conversion rights of the Registered Holders of the
Debentures against impairment.

                  (d) 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.

                  (e) The Company agrees, for so long as this Debenture shall
remain outstanding, unless the Holder has expressly consented thereto in
writing, neither the Company nor any direct or indirect consolidated
subsidiary of the Company shall incur, create, assume, guarantee, secure or
in any manner become liable in respect of any indebtedness for borrowed money
other than: (i) Senior Debt (or indebtedness which would be Senior Debt (A)
but for the Company's failure to designate such indebtedness as Senior Debt
or (B) if the amount of indebtedness held by a holder of Senior Debt under
clause (b) of Section 3 of this Debenture does not equal or exceed the
minimum amount set forth in such clause (b)); (ii) Trade Debt; (iii)
indebtedness which is subordinate to the Debenture or (iv) indebtedness not
otherwise permitted but not exceeding $500,000 outstanding from time to time
(other than debt convertible by its terms into equity or with respect to
which or in connection with which the lender(s) or their affiliates received
any equity or right to receive equity). Nothing in this section shall in any
way limit the ability of the Company or its subsidiaries to incur create,
assume, guarantee or become liable for, in the ordinary course of business,
obligations incurred in connection with performance bonds, suretyships and
the like.

            9. ASSUMPTION OF OBLIGATIONS. 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

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assets of the Company, the due and punctual payment of the principal and
interest on all the Debentures according to their terms and the due and
punctual performance and observance of all the terms, covenants and
conditions of the Debentures and the Primary Documents 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 (and such default with respect to
the payment of interest continues for five (5) business days); or

                  (b) failure to deliver the Conversion Shares or Warrant
Shares in the manner and at the time required by the Securities Purchase
Agreement (if such default continues for five (5) business days after receipt
of notice thereof); or

                  (c) failure of the Company to have authorized the number of
shares of Common Stock issuable upon conversion of the Debentures or exercise
of the Warrants and to register such shares as required in the Registration
Rights Agreement (if such default continues for ten (10) business days after
receipt of notice thereof); or

                  (d) failure on the part of the Company to duly observe or
perform any of its other covenants or agreements contained in the Debentures
or in the Primary Documents, or to cure any material breach in a material
representation or covenant contained in the Primary Documents for a period of
fifteen (15) 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) a 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 forty-five
(45) 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 forty-five (45) 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

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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 forty-five (45) 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, as hereinafter defined), in excess of $500,000, and which results
in such indebtedness, in an aggregate amount (with other defaulted
indebtedness) in excess of $500,000 being declared 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; or

                  (h) if any default shall occur in the payment of principal
on outstanding indebtedness of the Company (or a Material Subsidiary, as
hereinafter defined) at maturity in an amount exceeding $500,000, if such
default is not cured or waived within thirty (30) days; or

                  (i) 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 is a party or by which it is bound, and such
default is not waived or cured within the applicable grace period; or

                  (j) if a final judgment which, either alone or together
with other outstanding final judgments against the Company and its
subsidiaries, exceeds an aggregate of $500,000 shall be rendered against the
Company (or any Material Subsidiary) and such judgment shall have continued
undischarged or unstayed for forty-five (45) days after entry thereof;

      then, and in each and every such case, 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 holders of not less than fifty-one
percent (51%) in principal amount of the Debentures then outstanding, by
notice in writing to the Company, may declare the principal of all the
Debentures then outstanding and the interest accrued thereof, 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.

      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.

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            11. TRANSFERABILITY. This Debenture is transferable, in whole or
in part, only in accordance with the terms hereof and the Securities Purchase
Agreement. This Debenture and any shares of Common Stock issuable upon
conversion of any portion of this Debenture (the "Debenture Shares") shall
not be transferred, hypothecated or assigned before satisfaction of the
conditions specified in this Section 11. The holder by accepting this
Debenture and the Debenture Shares agrees that this Debenture and the
Debenture Shares may not be assigned or otherwise transferred unless and
until (i) the Company has received an opinion of counsel reasonably
acceptable to the Company that such securities may be sold or transferred
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 Securities and Exchange Commission.

      Prior to any transfer or attempted transfer of the Debenture or
Debenture Shares, the holder shall give five (5) 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 an opinion of counsel reasonably acceptable to the Company that
the proposed transfer of the Debenture or Debenture Shares may be effected
without registration under the Securities Act. After the Company's receipt of
the Transfer Notice and opinion, such holder shall thereupon be entitled to
transfer such Debenture or Debenture Shares, in accordance with the terms of
the Transfer Notice. Each certificate, if any, evidencing the Debenture
Shares issued upon such transfer and the Debenture issued upon such transfer
shall bear the restrictive legends set forth on the face of the Debenture,
unless in the opinion of counsel reasonably acceptable to the Company such
legend is not required in order to ensure compliance with the Securities Act.
In no event shall the Holder knowingly make a transfer of any of the
Debenture or the Debenture Shares to a competitor of the Company in the
business of the design, engineering, manufacturing and installation of custom
curtainwall systems for the construction industry.

      Notwithstanding the foregoing provisions, the restrictions imposed by
this Section 11 upon the transferability of the Debenture and the Debenture
Shares and the legend requirements of Section 11 shall terminate as to any
particular Debenture or Debenture Shares (i) when and so long as such
security shall have been effectively registered under the Securities Act and
disposed of pursuant thereto or (ii) when the Company shall have received an
opinion of counsel reasonably acceptable to the Company that such Debenture
or Debenture Shares may be transferred without registration thereof under the
Securities Act.

            12.   STOCK SPLITS; DIVIDENDS; ADJUSTMENTS; REORGANIZATIONS.

                  (a) If the Company shall at any time or from time to time
while the Debentures are outstanding fix a record date for the effectuation
of a split or subdivision of the Common Stock, the Applicable Conversion
Price in effect immediately before that subdivision shall be proportionately
decreased as of the record date of such split or subdivision. Conversely, if
the Company shall at any time or from time to time while the Debentures are
outstanding combine the outstanding shares of Common Stock into a smaller
number of shares, the Applicable Conversion Price in effect immediately
before such combination shall be proportionately increased as of the record
date of such combination. Any adjustment under this Section 12(a) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

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                  (b) If the Company at any time or from time to time makes,
or fixes a record date for the determination of holders of Common Stock
entitled to receive, a dividend or other distribution payable in additional
shares of Common Stock, in each such event the Applicable Conversion Price
then in effect shall be decreased as of the time of such issuance or, in the
event such record date is fixed, as of the close of business on such record
date, by multiplying the Applicable Conversion Price then in effect by a
fraction (x) the numerator of which is the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance
on the close of business on such record date, and (y) the denominator of
which is the total number of shares of Common Stock issued and outstanding
immediately prior to the time of such issuance or the close of business on
such record date plus the number of shares of Common Stock issuable in
payment of such dividend or distribution; provided, however, that if such
record date is fixed and such dividend is not fully paid or if such
distribution is not fully made on the date fixed therefor, the Applicable
Conversion Price shall be recomputed accordingly as of the close of business
on such record date and thereafter the Applicable Conversion Price shall be
adjusted pursuant to this Section 12(b) to reflect the actual payment of such
dividend or distribution.

                  (c) If the Company at any time or from time to time while
the Debentures are outstanding, the Common Stock issuable upon the conversion
of the Debentures is changed into the same or a different number of shares of
any class or classes of stock, whether by recapitalization, reclassification
or otherwise (other than a subdivision or combination of shares or stock
dividend or a reorganization, merger, consolidation or sale of assets
provided for elsewhere in this Section 12), in any such event each holder of
the Debentures shall have the right thereafter to convert such stock into the
kind and amount of stock and other securities and property receivable upon
such recapitalization, reclassification or other change by holders of the
maximum number of shares of Common Stock into which such Debentures could
have been converted immediately prior to such recapitalization,
reclassification or change, all subject to further adjustments as provided
herein or with respect to such other securities or property by the terms
thereof.

                  (d) If at any time or from time to time while the
Debentures are outstanding there is a capital reorganization of the Common
Stock (other than a recapitalization, subdivision, combination,
reclassification, exchange or substitution of shares provided for elsewhere
in this Section 12), as a part of such capital reorganization, provision
shall be made so that the holders of the Debentures shall thereafter be
entitled to receive upon conversion of the Debentures the number of shares of
stock or other securities or property of the Company to which a holder of the
number of shares of Common Stock deliverable upon conversion would have been
entitled on such capital reorganization, subject to adjustment in respect of
such stock or securities by the terms thereof. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Section
12 with respect to the rights of the holders of the Debentures after the
capital reorganization to the end that the provisions of this Section 12
(including adjustment of the Applicable Conversion Price then in effect and
the number of shares issuable upon conversion of the Debentures) shall be
applicable after that event and be as nearly equivalent as practicable.

                  (e) (i) If at any time or from time to time while the
Debentures are outstanding the Company issues or sells, or is deemed by the
express provisions of this subsection (i) to have issued or sold, Additional
Shares of Common Stock (as hereinafter defined), other than as a dividend or
other distribution on any class of stock as provided in Section 12(b) above,
and other

                                      10

<PAGE>

than a subdivision or combination of shares of Common Stock as provided in
Section 12(a) above, for an Effective Price (as hereinafter defined) less
than the then effective Applicable Conversion Price, then and in each such
case the Applicable Conversion Price shall be reduced, as of the opening of
business on the date of such issue or sale, to a price determined by
multiplying the Applicable Conversion Price existing immediately prior to
such issuance by a fraction (i) the numerator of which shall be (A) the
number of shares of Common Stock deemed outstanding (as defined below)
immediately prior to such issue or sale, plus (B) the number of shares of
Common Stock which the aggregate consideration received (as defined in
subsection (e)(ii)) by the Company for the total number of Additional Shares
of Common Stock so issued would purchase at the Applicable Conversion Price
existing immediately prior to such issuance, and (ii) the denominator of
which shall be the number of shares of Common Stock deemed outstanding (as
defined below) immediately prior to such issue or sale plus the total number
of Additional Shares of Common Stock so issued. For the purposes of the
preceding sentence, the number of shares of Common Stock deemed to be
outstanding as of a given date shall be the sum of (A) the number of shares
of Common Stock actually outstanding, (B) the number of shares of Common
Stock into which the then outstanding Debentures could be converted if fully
converted on the day immediately preceding the given date, and (C) the number
of shares of Common Stock which could be obtained through the exercise or
conversion of all other rights, options and convertible securities on the
date immediately preceding the given date.

                        (ii)  For  the   purpose  of  making  any
adjustment required under this Section 12(e), the consideration received by
the Company for any issue or sale of securities shall (A) to the extent it
consists of cash, be computed at the gross purchase price thereof, (B) to the
extent it consists of property other than cash, be computed at the fair value
of that property as determined in good faith by the Board of Directors, and
(C) if Additional Shares of Common Stock, Convertible Securities (as
hereinafter defined) or rights or options to purchase either Additional
Shares of Common Stock or Convertible Securities are issued or sold together
with other stock or securities or other assets of the Company for a
consideration which covers both, be computed as the portion of the
consideration so received that may be reasonably determined in good faith by
the Board of Directors to be allocable to such Additional Shares of Common
Stock, Convertible Securities or rights or options.

                        (iii) For  the  purpose  of  the  adjustment
required under this Section 12(e), if the Company issues or sells any rights
or options for the purchase of, or stock or other securities convertible
into, Additional Shares of Common Stock (such convertible stock or securities
being herein referred to as "Convertible Securities") and if the Effective
Price of such Additional Shares of Common Stock is less than the Applicable
Conversion Price, in each case the Company shall be deemed to have issued at
the time of the issuance of such rights or options or Convertible Securities
the maximum number of Additional Shares of Common Stock issuable upon
exercise or conversion thereof (assuming the satisfaction of any conditions
to exercisability, including without limitation, the passage of time, but
without taking into account potential antidilution adjustments) and to have
received as consideration for the issuance of such shares an amount equal to
the total amount of the consideration, if any, received by the Company for
the issuance of such rights or options or Convertible Securities, plus, in
the case of such rights or options, the minimum amounts of consideration, if
any, payable to the Company upon the exercise of such rights or options,
plus, in the case of Convertible Securities, the minimum amounts of
consideration, if any, payable to the

                                      11

<PAGE>

Company (other than the cancellation of liabilities or obligations evidenced
by such Convertible Securities) upon the conversion thereof; provided that if
in the case of Convertible Securities the minimum amounts of such
consideration cannot be ascertained, but are a function of antidilution or
similar protective clauses, the Company shall be deemed to have received the
minimum amounts of consideration without reference to such clauses; provided
further that if the minimum amount of consideration payable to the Company
upon the exercise or conversion of rights, options or Convertible Securities
is reduced over time or on the occurrence or nonoccurrence of specified
events other than by reason of antidilution adjustments, the Effective Price
shall be recalculated using the figure to which such minimum amount of
consideration is reduced; provided further that if the minimum amount of
consideration payable to the Company upon the exercise or conversion of such
rights, options or Convertible Securities is subsequently increased, the
Effective Price shall be again recalculated using the increased minimum
amount of consideration payable to the Company upon the exercise or
conversion of such rights, options or Convertible Securities. No further
adjustment of the Applicable Conversion Price, as adjusted upon the issuance
of such rights, options or Convertible Securities, shall be made as a result
of the actual issuance of Additional Shares of Common Stock on the exercise
of any such rights or options or the conversion of any such Convertible
Securities. If any such rights or options or the conversion privilege
represented by any such Convertible Securities shall expire without having
been exercised, the Applicable Conversion Price, as adjusted upon the
issuance of such rights, options or Convertible Securities shall be
readjusted to the Applicable Conversion Price which would have been in effect
had an adjustment been made on the basis that the only Additional Shares of
Common Stock so issued were the Additional Shares of Common Stock, if any,
actually issued or sold on the exercise of such rights or options or rights
of conversion of such Convertible Securities, and such Additional Shares of
Common Stock, if any, were issued or sold for the consideration actually
received by the Company upon such exercise, plus the consideration, if any,
actually received by the Company for the granting of all such rights or
options, whether or not exercised, plus the consideration received for
issuing or selling the Convertible Securities actually converted, plus the
consideration, if any, actually received by the Company (other than by
cancellation of liabilities or obligations evidenced by such Convertible
Securities) on the conversion of such Convertible Securities, provided that
such readjustment shall not apply to prior conversions of Debentures.

                        (iv)  "Additional  Shares of Common  Stock" shall
mean all shares of Common Stock issued by the Company or deemed to be issued
pursuant to this Section 12(e), whether or not subsequently reacquired or
retired by the Company other than: (1) shares of Common Stock issued upon
conversion of the Debentures or exercise of the Warrants; (2) any shares of
Common Stock issuable or issued pursuant to options after the issue date of
the Debentures to employees, officers or directors of, or consultants or
advisors to the Company or any subsidiary of the Company pursuant to any plan
approved by the Board of Directors (provided that no more than 500,000 shares
shall be issuable or issued pursuant to options at an exercise price of less
than $3.50 per share (as adjusted for any stock dividends, combinations,
splits, recapitalizations and the like)); (3) shares of Common Stock issued
pursuant to the exercise of options, warrants or convertible securities
outstanding as of the issue date of the Debentures; (4) shares of Common
Stock (or options, warrants, or other rights to purchase such Common Stock)
issued or issuable to entities in connection with equipment leasing, bank
financing or strategic alliance transactions (if such issuances are made in
connection with transactions that do not have as a primary purpose equity

                                      12

<PAGE>

financing) upon the express approval of the Board of Directors; provided,
however, that all such issuances of Common Stock or such rights to acquire
Common Stock issued or issuable under this clause (4) shall not exceed, on an
aggregate basis, seven and one-half percent (7.5%) of the outstanding Common
Stock at any time; and (5) shares of Common Stock issued in connection with
acquisitions by the Company of equity and/or assets of other businesses or in
connection with a merger of the Company with another entity (if such
issuances are made in connection with transactions that do not have as a
primary purpose equity financing). The "Effective Price" of Additional Shares
of Common Stock shall mean the quotient determined by dividing the total
number of Additional Shares of Common Stock issued or sold, or deemed to have
been issued or sold by the Company under this Section 12(e), into the
aggregate consideration received, or deemed to have been received by the
Company for such issue under this Section 12(e), for such Additional Shares
of Common Stock.

                  (f) (i) On or before February 15 of each of 2002, 2003 and
2004, the Company shall cause to be prepared by its accountants (in
accordance with generally accepted accounting principles consistently
applied) and delivered to the Registered Holders a certificate of the Company
certified by its chief financial officer (the "Milestone Certificates")
setting forth in reasonable detail and with supporting calculations the
Company's earnings before interest, taxes, depreciation and amortization
("EBITDA") for the Company's fiscal years ended October 31, 2001, 2002 and
2003, respectively. The Registered Holders shall have the right, for a period
of twenty (20) days after receipt of a Milestone Certificate, to review same
and make objections thereto. In the event that the Registered Holders object
to a Milestone Certificate, the Company and the Registered Holders shall
attempt (and the Company shall direct its accountants) to amicably reach an
agreement as to resolution of the dispute. The Company shall promptly supply
the Registered Holders with such additional information and supporting
materials as they may reasonably request in order to assess the Milestone
Certificates ("Additional Information"). If the Registered Holders object to
the original or a revised Milestone Certificate within 30 days following the
later of (i) the initial objection with respect to same or (ii) the last date
of receipt by the Registered Holders of Additional Information in fulfillment
of the most recent request for same, the EBITDA for the fiscal year in
question shall be determined by an independent firm of certified public
accountants selected by the Registered Holders and reasonably acceptable to
the Company (the "Independent Accountants"), whose determination shall be
binding on the Company and the Registered Holders. The cost of such
determination shall be borne by the Company if the determination of EBITDA by
the Independent Accountants contains a discrepancy in favor of the Registered
Holders from that of the Milestone Certificate or if the Independent
Accountants determine that the information provided to the Registered Holders
was inadequate to verify the EBITDA determination contained in the Milestone
Certificate. In any other case, the Registered Holders who have objected to
the Milestone Certificate shall bear the cost of such determination.

                        (ii)  Notwithstanding  any other provision  herein,
if the Company fails to achieve Minimum Performance (as defined below) with
respect to any of fiscal years 2001, 2002 or 2003, then the Applicable
Conversion Price shall be reduced to $2.50 (subject to adjustment for stock
splits, combinations, dividends, recapitalizations and the like) as of the
applicable Computation Date (as defined below). The Company shall be deemed
to have achieved Minimum Performance (a) for fiscal year 2001 if its EBITDA
in such fiscal year equals or exceeds $4,350,000, (b) for fiscal year 2002 if
its EBITDA in such fiscal year equals or exceeds $6,250,000, and (c) for

                                      13

<PAGE>

fiscal year 2003 if either (1) its EBITDA in fiscal year 2003 equals or
exceeds $8,000,000 or (2) its aggregate EBITDA in fiscal year 2001, 2002 and
2003 equals or exceeds $18,600,000. The "Computation Date" shall mean
February 15 of each of 2002, 2003 and 2004, as applicable.

                        The Minimum  Performance  goal for fiscal year 2001
as set forth above shall be subject to further adjustment if the number of
Average Outstanding Shares (as defined below) at the end of fiscal year 2001
is greater than the Base Amount as such term is defined in Exhibit E attached
hereto. If such an adjustment is required, then the fiscal year 2001 EBITDA
performance goal shall be increased by the percentage by which the number of
Average Outstanding Shares at February 15, 2002 exceeds the Base Amount.

                        The Minimum  Performance goals for each of fiscal
year 2002 and fiscal year 2003 as set forth above shall be subject to further
adjustment if the number of Average Outstanding Shares at the end of each of
fiscal year 2002 and 2003, as applicable, is greater than the Average
Outstanding Shares for the preceding fiscal year (an "Adjustment Event"). If
an Adjustment Event occurs, the EBITDA performance goals for fiscal year 2002
or 2003, as applicable, shall be increased by the percentage by which the
number of Average Outstanding Shares at the end of the fiscal year 2002 or
2003, as applicable, exceeds the number of Average Outstanding Shares of the
preceding fiscal year.

                        The  "Average   Outstanding  Shares"  shall  mean
all shares of capital stock of the Company calculated on weighted-average,
fully-diluted basis in accordance with generally accepted accounting
principles consistently applied, increased to reflect those shares of Common
Stock specified on Exhibit E which have not been issued, exercised or fully
vested as of the end of the applicable fiscal year for which the calculation
is being performed (to the extent such shares are not included in the initial
weighted-average, fully-diluted number calculated in accordance with
generally accepted accounting principles consistently applied; for the
avoidance of doubt, it being understood that no such shares shall be counted
twice). In addition, in calculating the number of Average Outstanding Shares,
any adjustment resulting from any stock split, stock combination, divided
payable in shares of the Company's common stock or other such event shall be
appropriately reflected in such calculation.

                  (g) In each case of an adjustment or readjustment of the
Applicable Conversion Price, the Company, at its expense, shall compute such
adjustment or readjustment in accordance with the provisions hereof and
prepare a certificate showing such adjustment or readjustment, and shall mail
such certificate, by first class mail, postage prepaid, to each Registered
Holder at the holder's address as shown in the Company's books. The
certificate shall set forth such adjustment or readjustment, showing in
detail the facts upon which such adjustment or readjustment is based,
including a statement of (1) the consideration received or deemed to be
received by the Company for any Additional Shares of Common Stock issued or
sold or deemed to have been issued or sold, (2) the Applicable Conversion
Price then in effect, (3) the number of Additional Shares of Common Stock and
(4) the number of shares of Common Stock and the type and amount, if any, of
other property which at the time would be received upon conversion of the
Debentures.

                  (h) 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

                                      14

<PAGE>

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
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, security or right and the amount and character of such
dividend, distribution, security or right.

                  (i) Without the consent of the holders of then outstanding
Debentures, the Company shall not amend its Articles of Incorporation or
participate in any reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities or take any other voluntary action,
for the purpose of avoiding or seeking to avoid the observance or performance
of any of the terms to be observed or performed hereunder by the Company, but
shall at all times in good faith assist in carrying out all such action as
may be reasonably necessary in order to protect the conversion rights of the
holders of the Debentures against dilution or other impairment.

            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 Primary
Documents, 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 Primary Documents 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 a (as defined in the Securities Purchase Agreement), and an
action is brought by the Registered Holder with respect thereto, the Company
shall pay 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 in aid of the exercise of any power granted hereby or thereby or
by law.

                                      15

<PAGE>

                  (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. CHOICE OF LAW; JURISDICTION. This Debenture and the rights
and obligations of the parties hereto shall be governed, construed and
interpreted according to the internal laws of the State of New York. The
parties hereby consent 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 waive, 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.

                                      16

<PAGE>

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

                                    FLOUR CITY INTERNATIONAL, INC.

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

                                      17<PAGE>

                                                                    EXHIBIT 4.3

   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: ___________

                                     WARRANT

                           To Purchase Common Stock of

                         Flour City International, Inc.

            THIS IS TO CERTIFY THAT ___________, a ________ ___________, or
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 Flour City International, Inc., a Nevada corporation (the
"Company"), ________ 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 $4.64 (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.
Notwithstanding the foregoing, the purchase price per share of the Common
Stock purchasable upon exercise of this Warrant shall be equal to the market
value per share of the Company's Common Stock at the close of trading on the
date hereof if such market value is greater than $4.64. In the event of such
an adjustment, the number of shares of Common Stock purchasable under this
Warrant shall be multiplied by the quotient of such higher exercise price per
share divided by $4.25 (such per share purchase price, as may be determined
pursuant to this sentence is referred to herein as the "Original Purchase
Price").

      1. DEFINITIONS

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

            "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.

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

            "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, $.0001 par value, of the Company as constituted
on the Closing Date, and any capital stock into which such Common Stock may
thereafter be changed, and shall also include

<PAGE>

(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 $4.64 (or other Original
Purchase Price, if different), 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 mean June 11, 2006.

            "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.

            "Market Price" per Common Share means the average of the closing
bid prices of the Common Shares as reported on The Nasdaq Stock Market
("NASDAQ") or, if such security is not listed or admitted to trading on
NASDAQ, on the principal national security exchange or quotation 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.

            "Person" shall mean any individual, sole proprietorship,
partnership, joint venture, trust, incorporated organization, association,
corporation, institution, public benefit corporation, other legal 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 as of June 11, 2001 by and between the Company and
Dimensional Partners, L.P. and Dimensional Partners, Ltd., as it may be
amended from time to time.

                                      2

<PAGE>

            "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 June 11, 2001 by and between the Company and
Dimensional Partners, L.P. and Dimensional Partners, Ltd., 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.

            "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. (a) 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 (which
part shall be no less than 50,000 shares) of the number of shares of Common
Stock purchasable hereunder. In order to exercise this Warrant, in whole or
in part, Holder shall fax to the Company an executed and completed Notice of
Exercise to exercise this Warrant, which Notice of Exercise shall specify the
number of shares of Common Stock to be purchased (the "Notice of Exercise"),
and shall deliver to the Company within three (3) business days thereafter by
hand delivery or express courier at the office or agency designated by the
Company pursuant to Section 12: (i) the original Notice of Exercise, (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 pursuant to Section 2.1(b)) having an aggregate Market
Price equal to the Warrant Price for all shares then being purchased and
(iii) this Warrant. The Notice of Exercise shall be substantially in the 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

                                      3

<PAGE>

practicable, and in any event within three (3) 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 means of the
fax of the Notice of Exercise to the Company. 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.

            (b) If the Market Price of one share of Common Stock is greater
than the Current Warrant Price, this Warrant may be exercised by means of a
written notice as described in Section 2.1(a), marked to reflect a "Net Issue
Exercise" and specifying the amount of Warrant Stock to be purchased. Upon
such exercise, the Holder shall be entitled to receive Warrant Stock equal in
value to the value of this Warrant (or the portion thereof being cancelled)
and the Company shall issue to Holder a number of shares of Warrant Stock
computed as of the date of surrender of this Warrant to the Company using the
following formula:

                              X  =  Y(A-B)
                                    ------
                                       A

Where   X = the number of shares of Warrant Stock to be issued to Holder
            under this section 2.1(b);

        Y = the number of shares of Warrant Stock purchasable under this
            Warrant or, if only a portion of the Warrant is being exercised,
            the portion of the Warrant being cancelled (at the date of such
            calculation);

        A = the Market Price of one share of the Warrant Stock (at the date
            of such calculation); and

        B = the Current Warrant Price (as adjusted to the date of such
            calculation).

            (c) 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, other than any income or other similar taxes incurred by
the Holder in connection with the issue, delivery and exercise of this
Warrant.

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

                                      5

<PAGE>

            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.

            4.2.  CERTAIN OTHER DISTRIBUTIONS.

                  (a) 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,

                                      6

<PAGE>

                        (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.

                  (b) (i) If at any time or from time to time the Company
issues or sells, or is deemed by the express provisions of this subsection
(i) to have issued or sold, Additional Shares of Common Stock (as hereinafter
defined), other than as a dividend or other distribution on any class of
stock as provided in Section 4.2(a) above, and other than a subdivision or
combination of shares of Common Stock as provided in Section 4.1 above, for
an Effective Price (as hereinafter defined) less than the then effective
Current Warrant Price, then and in each such case the Current Warrant Price
shall be reduced, as of the opening of business on the date of such issue or
sale, to a price determined by multiplying the Current Warrant Price existing
immediately prior to such issuance by a fraction (x) the numerator of which
shall be (A) the number of shares of Common Stock deemed outstanding (as
defined below) immediately prior to such issue or sale, plus (B) the number
of shares of Common Stock which the aggregate consideration received (as
defined in subsection (b)(ii)) by the Company for the total number of
Additional Shares of Common Stock so issued would purchase at the Current
Warrant Price existing immediately prior to such issuance, and (y) the
denominator of which shall be the number of shares of Common Stock deemed
outstanding (as defined below) immediately prior to such issue or sale plus
the total number of Additional Shares of Common Stock so issued. For the
purposes of the preceding sentence, the number of shares of Common Stock
deemed to be outstanding as of a given date shall be the sum of (A) the
number of shares of Common Stock actually outstanding, (B) the number of
shares of Common Stock into which the then outstanding Debentures could be
converted if fully converted on the day immediately preceding the given date,
and (C) the number of shares of Common Stock which could be obtained through
the exercise or conversion of the Warrants, all other rights, options and
convertible securities on the date immediately preceding the given date.

                        (ii)  For the purpose of making any adjustment
required under this Section 4.2(b), the consideration received by the Company
for any issue or sale of securities

                                      7

<PAGE>

shall (A) to the extent it consists of cash, be computed at the gross
purchase price thereof, (B) to the extent it consists of property other than
cash, be computed at the fair value of that property as determined in good
faith by the Board of Directors, and (C) if Additional Shares of Common
Stock, Convertible Securities (as hereinafter defined) or rights or options
to purchase either Additional Shares of Common Stock or Convertible
Securities are issued or sold together with other stock or securities or
other assets of the Company for a consideration which covers both, be
computed as the portion of the consideration so received that may be
reasonably determined in good faith by the Board of Directors to be allocable
to such Additional Shares of Common Stock, Convertible Securities or rights
or options.

                        (iii) For the purpose of the adjustment required
under this Section 4.2(b), if the Company issues or sells any rights or
options for the purchase of, or stock or other securities convertible into,
Additional Shares of Common Stock (such convertible stock or securities being
herein referred to as "Convertible Securities") and if the Effective Price of
such Additional Shares of Common Stock is less than the Current Warrant
Price, in each case the Company shall be deemed to have issued at the time of
the issuance of such rights or options or Convertible Securities the maximum
number of Additional Shares of Common Stock issuable upon exercise or
conversion thereof (assuming the satisfaction of any conditions to
exercisability, including without limitation, the passage of time, but
without taking into account potential antidilution adjustments) and to have
received as consideration for the issuance of such shares an amount equal to
the total amount of the consideration, if any, received by the Company for
the issuance of such rights or options or Convertible Securities, plus, in
the case of such rights or options, the minimum amounts of consideration, if
any, payable to the Company upon the exercise of such rights or options,
plus, in the case of Convertible Securities, the minimum amounts of
consideration, if any, payable to the Company (other than the cancellation of
liabilities or obligations evidenced by such Convertible Securities) upon the
conversion thereof; provided that if in the case of Convertible Securities
the minimum amounts of such consideration cannot be ascertained, but are a
function of antidilution or similar protective clauses, the Company shall be
deemed to have received the minimum amounts of consideration without
reference to such clauses; provided further that if the minimum amount of
consideration payable to the Company upon the exercise or conversion of
rights, options or Convertible Securities is reduced over time or on the
occurrence or nonoccurrence of specified events other than by reason of
antidilution adjustments, the Effective Price shall be recalculated using the
figure to which such minimum amount of consideration is reduced; provided
further that if the minimum amount of consideration payable to the Company
upon the exercise or conversion of such rights, options or Convertible
Securities is subsequently increased, the Effective Price shall be again
recalculated using the increased minimum amount of consideration payable to
the Company upon the exercise or conversion of such rights, options or
Convertible Securities. No further adjustment of the Current Warrant Price,
as adjusted upon the issuance of such rights, options or Convertible
Securities, shall be made as a result of the actual issuance of Additional
Shares of Common Stock on the exercise of any such rights or options or the
conversion of any such Convertible Securities. If any such rights or options
or the conversion privilege represented by any such Convertible Securities
shall expire without having been exercised, the Current Warrant Price, as
adjusted upon the issuance of such rights, options or Convertible Securities,
shall be readjusted to the Current Warrant Price which would have been in
effect had an adjustment been made on the basis that the only Additional
Shares of Common Stock so issued were the Additional Shares of Common Stock,
if any, actually issued or sold on the exercise of such rights

                                      8

<PAGE>

or options or rights of conversion of such Convertible Securities, and such
Additional Shares of Common Stock, if any, were issued or sold for the
consideration actually received by the Company upon such exercise, plus the
consideration, if any, actually received by the Company for the granting of
all such rights or options, whether or not exercised, plus the consideration
received for issuing or selling the Convertible Securities actually
converted, plus the consideration, if any, actually received by the Company
(other than by cancellation of liabilities or obligations evidenced by such
Convertible Securities) on the conversion of such Convertible Securities,
provided that such readjustment shall not apply to prior conversions of
Debentures.

                        (iv)  "Additional Shares of Common Stock" shall mean
all shares of Common Stock issued by the Company or deemed to be issued
pursuant to this Section 4.2(b), whether or not subsequently reacquired or
retired by the Company, other than (1) shares of Common Stock issued upon
conversion of the Debentures or exercise of the Warrants; (2) any shares of
Common Stock issuable or issued pursuant to options (as adjusted for any
stock dividends, combinations, splits, recapitalizations and the like) after
the issue date of the Warrants to employees, officers or directors of, or
consultants or advisors to the Company or any subsidiary of the Company
pursuant to any plan approved by the Board of Directors) (provided that no
more than 500,000 shares shall be issuable or issued pursuant to options at
an exercise price of less than $3.50 per share (as adjusted for any stock
dividends, combinations, recapitalizations and the like); (3) shares of
Common Stock issued pursuant to the exercise of options, warrants or
convertible securities outstanding as of the issue date of the Warrants; (4)
shares of Common Stock (or options, warrants, or other rights to purchase
such Common Stock) issued or issuable to entities in connection with
equipment leasing, bank financing or strategic alliance transactions (if such
issuances are made in connection with transactions that do not have as a
primary purpose equity financing) upon the express approval of the Board of
Directors; provided, however, that all such issuances of Common Stock or such
rights to acquire Common Stock issued or issuable under this clause (4) shall
not exceed, on an aggregate basis, seven and one-half percent (7.5%) of the
outstanding Common Stock at any time; and (5) shares of Common Stock issued
in connection with acquisitions by the Company of equity and/or assets of
other businesses or in connection with a merger of the Company with another
entity (if such issuances are made in connection with transactions that do
not have as a primary purpose equity financing). The "Effective Price" of
Additional Shares of Common Stock shall mean the quotient determined by
dividing the total number of Additional Shares of Common Stock issued or
sold, or deemed to have been issued or sold by the Company under this Section
4.2(b), into the aggregate consideration received, or deemed to have been
received by the Company for such issue under this Section 4.2(b), for such
Additional Shares of Common Stock.

                  (c) (i) On or before February 15 of each of 2002, 2003 and
2004, the Company shall cause to be prepared by its accountants (in
accordance with GAAP consistently applied) and delivered to all Holders a
certificate of the Company certified by its chief financial officer (the
"Milestone Certificates") setting forth in reasonable detail and with
supporting calculations the Company's earnings before interest, taxes,
depreciation and amortization ("EBITDA") for the Company's fiscal years ended
October 31, 2001, 2002 and 2003, respectively, in each case in accordance
with GAAP, consistently applied. The Holders shall have the right, for a
period of twenty (20) days after receipt of a Milestone Certificate, to
review same and make objections thereto. In the event that the Holders object
to a Milestone Certificate, the Company and the Holders shall attempt (and
the Company shall direct its

                                      9

<PAGE>

accountants) to amicably reach an agreement as to resolution of the dispute.
The Company shall promptly supply the Holders with such additional
information and supporting materials as they may reasonably request in order
to assess the Milestone Certificates ("Additional Information"). If the
Holders object to the original or a revised Milestone Certificate within 30
days following the later of (i) the initial objection with respect to same or
(ii) the last date of receipt by the Holders of Additional Information in
fulfillment of the most recent request for same, the EBITDA for the fiscal
year in question shall be determined by an independent firm of certified
public accountants selected by the Holders and reasonably acceptable to the
Company (the "Independent Accountants"), whose determination shall be binding
on the Company and the Holders. The cost of such determination shall be borne
by the Company if the determination of EBITDA by the Independent Accountants
contains a discrepancy in favor of the Registered Holders from that of the
Milestone Certificate or if the Independent Accountants determine that the
information provided to the Registered Holders was inadequate to verify the
EBITDA determination contained in the Milestone Certificate. In any other
case, the Registered Holders who have objected to the Milestone Certificate
shall bear the cost of such determination.

                        (ii)  Notwithstanding any other provision herein, if
the Company fails to achieve Minimum Performance (as defined below) with
respect to any of fiscal years 2001, 2002 or 2003, then the Applicable
Conversion Price shall be reduced to $2.50 (subject to adjustment for stock
splits, combinations, dividends, recapitalizations and the like) as of the
applicable Computation Date (as defined below). The Company shall be deemed
to have achieved Minimum Performance (a) for fiscal year 2001 if its EBITDA
in such fiscal year equals or exceeds $4,350,000, (b) for fiscal year 2002 if
its EBITDA in such fiscal year equals or exceeds $6,250,000, and (c) for
fiscal year 2003 if either (1) its EBITDA in fiscal year 2003 equals or
exceeds $8,000,000 or (2) its aggregate EBITDA in fiscal year 2001, 2002 and
2003 equals or exceeds $18,600,000. The "Computation Date" shall mean
February 15 of each of 2002, 2003 and 2004, as applicable.

                        The Minimum Performance goal for fiscal year 2001 as
set forth above shall be subject to further adjustment if the number of
Average Outstanding Shares (as defined below) at the end of fiscal year 2001
is greater than the Base Amount as such term is defined in Exhibit C attached
hereto. If such an adjustment is required, then the fiscal year 2001 EBITDA
performance goal shall be increased by the percentage by which the number of
Average Outstanding Shares at February 15, 2002 exceeds the Base Amount.

                        The Minimum Performance goals for each of fiscal year
2002 and fiscal year 2003 as set forth above shall be subject to further
adjustment if the number of Average Outstanding Shares at the end of each of
fiscal year 2002 and 2003, as applicable, is greater than the Average
Outstanding Shares for the preceding fiscal year (an "Adjustment Event"). If
an Adjustment Event occurs, the EBITDA performance goals for fiscal year 2002
or 2003, as applicable, shall be increased by the percentage by which the
number of Average Outstanding Shares at the end of the fiscal year 2002 or
2003, as applicable, exceeds the number of Average Outstanding Shares of the
preceding fiscal year.

                        The "Average Outstanding Shares" shall mean all
shares of capital stock of the Company calculated on weighted-average,
fully-diluted basis in accordance with generally accepted accounting
principles consistently applied, increased to reflect those shares of Common
Stock specified on Exhibit C which have not been issued, exercised or fully
vested as

                                      10

<PAGE>

of the end of the applicable fiscal year for which the calculation is being
performed (to the extent such shares are not included in the initial
weighted-average, fully-diluted number calculated in accordance with
generally accepted accounting principles consistently applied; for the
avoidance of doubt, it being understood that no such shares shall be counted
twice). In addition, in calculating the number of Average Outstanding Shares,
any adjustment resulting from any stock split, stock combination, divided
payable in shares of the Company's common stock or other such event shall be
appropriately reflected in such calculation.

            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 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 investment banking firm of recognized national
standing selected by the Holder.

            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
entity (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 entity 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

                                      11

<PAGE>

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, in the
opinion of an unaffiliated investment bank selected by Holder, have a
materially adverse effect upon the rights of the Holder, the number of shares
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 unaffiliated investment bank selected by Holder.

            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 stockholder 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

                                      12

<PAGE>

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 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

                  (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 10 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 20 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 articles 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

                                      13

<PAGE>

assist in the carrying out of all such terms and in the taking of all such
actions as may be reasonably necessary 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.

      7. RESERVATION AND AUTHORIZATION OF COMMON STOCK

            From and after the 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 and will take such record
as of the close of business on a Business Day. The Company will not at any
time during normal business hours close its stock transfer books or Warrant
transfer books so as to result in preventing or delaying the exercise or
transfer of any Warrant except in compliance with the terms and conditions of
this Warrant or applicable laws.

                                      14

<PAGE>

      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.

            (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

                                      15

<PAGE>

                  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 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. In no event
shall the Holder knowingly make a transfer of any Warrants to a competitor of
the Company in the business of the design, engineering, manufacturing and
installation of custom curtainwall systems for the construction industry.

            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 90th day after the 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 under
the Securities Act but no later than 180 days after the Closing Date.

            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 reasonably
acceptable to the Company that such shares may be transferred without
registration thereof under the Securities Act and applicable state securities
laws.

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,

                                      16

<PAGE>

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 any such 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 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 1044 Fordtown Road,
Kingsport, TN 37663, fax: (423) 349-0150, provided, however, that the Company
shall provide prior written notice to Holder of a change in address no less
than 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 and indirect losses, damages, costs and expenses
including, but not limited to, reasonable attorneys' fees,

                                      17

<PAGE>

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
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:

                        Flour City International, Inc.
                        1044 Fordtown Road
                        Kingsport, TN  37663
                        Attention: Mr. John Tang
                                   Chief Executive Officer
                                          and
                                   Mr. Johnson Fong
                                   Chief Financial Officer
                        Tel:  (423) 349-8692
                        Fax:  (423) 349-0150

            With a copy to:

                        Heller, Ehrman, White & McAuliff LLP
                        333 Bush Street
                        San Francisco, CA 94104
                        Attention:  Timothy G. Hoxie, Esq.
                        Tel:  (415) 772-6000
                        Fax:  (415) 772-6268

                  (2)   if to the Holder, to:

                        Dimensional Partners, L.P. and
                        Dimensional Partners, Ltd.
                        c/o JDS Capital Management, Inc.
                        780 Third Avenue
                        New York, NY  10017
                        Attention:  Mr. Joseph Samberg
                                    President
                        Tel:    (212) 833-9925
                        Fax:    (212) 593-8814

                                      18

<PAGE>

            With a copy to:

                        Rosenman & Colin LLP
                        575 Madison Avenue
                        New York, NY 10022
                        Attention:  Michael R. Butowsky, Esq.
                        Tel:  (212) 940-8800
                        Fax:  (212) 940-8776

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, costs, attorneys'
fees, expenses and disbursements of any kind which may be imposed upon,
incurred by or asserted against Holder in any manner relating to or arising
out of any failure by the Company to perform or 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. The Company agrees
that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance
that a remedy at law would be adequate.

            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.

                                      19

<PAGE>

            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 REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      20
<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:  June 11, 2001

                                    FLOUR CITY INTERNATIONAL, INC.

                                    By:___________________________
                                       Name:
                                       Title:

                                      21

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