Document:

THE SECURITIES DESCRIBED IN THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
CERTAIN STATES, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT
APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING
TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

                                WARRANT AGREEMENT

      This Warrant Agreement (the "AGREEMENT") dated as of March 4, 2004 between
5G Wireless Communications, Inc., a Nevada corporation (the "COMPANY"), and
_________ ("HOLDER").

      WHEREAS, Holder has lent the Company, through a promissory note, an
aggregate amount of _______ Thousand Dollars ($___,000) (the "NOTE") pursuant to
a certain Note and Warrant Purchase Agreement, entered into of even date
herewith (the "NOTE AND WARRANT AGREEMENT") by and between the Company and
Holder. Terms used but not otherwise defined herein shall have the meaning set
forth in the Note and Warrant Agreement.

      WHEREAS, pursuant to the Note and Warrant Agreement, the Company wishes to
grant Holder a warrant (the "WARRANT") to purchase an amount equal to forty
percent (40%) of the amount invested pursuant to the Note and Warrant Agreement
(in this case ________ Dollars ($___,000)) worth of the Capital Stock of the
Company at the Exercise Price described herein.

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto agree as follows:

1. Issuance of Warrant Certificate. The Warrant certificate to be delivered
pursuant to this Agreement (the "WARRANT CERTIFICATE") shall be executed on
behalf of the Company by its Chief Executive Officer, President, or any Vice
President and attested by its corporate Secretary or one of its assistant
Secretaries.

2. Right to Exercise Warrant. Each Warrant may be exercised from the date of
this Agreement until 11:59 P.M. (Pacific Standard Time) on March 4, 2006 (the
"EXPIRATION DATE") pursuant to the provisions set forth in this Agreement. Each
Warrant not exercised on or before the Expiration Date shall expire. Subject to
the provisions of this Agreement, Holder shall have the right to exercise this
Warrant into, and the Company shall issue and sell to Holder, Company Common
Stock at a price per share equal to the lesser of (a) the average closing bid
price on the OTC Bulletin Board on the five (5) trading days preceding the
Closing, or (b) the average closing bid price on the OTC Bulletin Board on the
fifteen (15) trading days preceding the date of exercise (the "EXERCISE PRICE").

      Upon surrender of such Warrant Certificate and payment of the Exercise
Price by either cash or cashless exercise ("NET ISSUE EXERCISE"), the Company
shall cause the number of Shares to be issued and delivered promptly to
Purchaser. In the event that upon any exercise of the Warrant evidenced hereby,
the number of Shares purchased upon exercise shall be less than the total number
of Shares underlying the Warrant there shall be issued to the Holder a new
Warrant Certificate evidencing the number of Shares not purchased. The Warrant
evidenced by a Warrant Certificate shall be exercisable at the election of the
holder thereof, subject to the provisions of Section 4 hereof.

                                       1
<PAGE>

      (a) Cash Exercise. The Warrant may be exercised by the holder by (i) the
surrender of the Warrant Certificate to the Company, with the Notice of Exercise
annexed hereto duly completed and executed on behalf of the Holder, at the
office of the Company (or such other office or agency of the Company as it may
designate by notice in writing to the Holder at the address of the Holder
appearing on the books of the Company) and (ii) the delivery of payment to the
Company, for the account of the Company, by cash, wire transfer of immediately
available funds to a bank account specified by the Company, or by certified or
bank cashier's check, of the Exercise Price for the number of Shares specified
in the Notice of Exercise in lawful money of the United States of America. The
Company agrees that such Shares shall be deemed to be issued to the Holder as
the record holder of such Shares as of the close of business on the date on
which the Warrant Certificate shall have been surrendered and payment made for
the Shares as aforesaid. A stock certificate or certificates for the Shares
specified in the Notice of Exercise shall be delivered to the holder as promptly
as practicable, and in any event within 10 days, thereafter. No adjustments
shall be made on the Shares issuable on the exercise of the Warrant for any cash
dividends paid or payable to holders of record of Common Stock or Capital Stock,
as applicable, prior to the date as of which the Holder shall be deemed to be
the record holder of the Shares.

      (b) Net Issue Exercise. In lieu of exercising the Warrant pursuant to
Section 2(a), the holder may elect to receive, without the payment by the holder
of any additional consideration, shares equal to the value of the Warrant, or
any portion thereof, by the surrender of the Warrant Certificate to the Company,
with the Notice of Exercise annexed hereto duly executed, at the office of the
Company. Thereupon, the Company shall issue to the holder such number of fully
paid and nonassessable shares of Common Stock or Capital Stock, as applicable,
as is computed using the following formula:

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

            where

   X  =     the number of Shares to be issued to the holder pursuant to this
            Section 2(b).

   Y  =     the number of Shares otherwise issuable under the Warrant
            Certificate or, if only a portion of the Warrant is being
            exercised, the portion of the Warrant Certificate being
            surrendered (as adjusted to the date of such calculation).

   A  =     if for Common Stock, the closing stock price of one share of
            Common Stock as reported by the OTC Bulletin Board on the
            trading day immediately prior to the date the Company receives
            the Notice of Election, or if for Capital Stock, the fair
            market value of one share of Capital Stock as determined by
            the Company's Board of Directors on the business day
            immediately prior to the date the Company receives the Notice
            of Election.

   B  =     the Exercise Price in effect under the Warrant at the time
            the Net Issue Election is made pursuant to this Section 2(b).

                                       2
<PAGE>

      3. Reservation of Shares. The Company will at all times reserve and keep
available, free from preemptive rights, out of the aggregate of its authorized
but unissued Common Stock or its authorized and issued Common Stock held in its
treasury for the purpose of enabling it to satisfy any obligation to issue
Common Stock upon exercise of the Warrant, the full number of shares of Common
Stock deliverable upon the exercise of the Warrant. The Company covenants that
all shares of Common Stock which may be issued upon exercise of the Warrant will
be validly issued, fully paid and nonassessable.

      4. Registration under the Securities Act of 1933 (the "ACT"). Holder
represents and warrant to the Company that Holder is acquiring the Warrant for
investment and with no present intention of distributing or reselling any of the
Warrant. The Common Stock to be issued upon exercise hereof and the certificate
or certificates evidencing any such shares shall bear the following legend:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
CERTAIN STATES, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE LAWS, (ii) TO THE EXTENT
APPLICABLE, RULE 144 UNDER THE ACT (OR ANY SIMILAR RULE UNDER THE ACT RELATING
TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL, IF SUCH
OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL TO THE ISSUER, THAT AN
EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE LAW IS AVAILABLE.

      Certificates for the Warrant or the Common Stock shall also bear such
legends as may be required from time to time by law.

      5. Adjustment of Exercise Price and Number of Shares and Class of Capital
Stock Purchasable. The Exercise Price and the number of shares of Common Stock
purchasable upon the exercise of each Warrant are subject to adjustment from
time to time as set forth in this Section 6.

      (a) Adjustment for Change in Capital Stock. If the Company: pays a
dividend or makes a distribution on its Common Stock in shares of its Common
Stock; subdivides its outstanding shares of Common Stock into a greater number
of shares; combines its outstanding shares of Common Stock into a smaller number
of shares; makes a distribution on its Common Stock in shares of its capital
stock other than Common Stock; or issues by reclassification of its shares of
Common Stock any shares of such capital stock; then the number and classes of
shares of Common Stock purchasable upon exercise of each Warrant in effect
immediately prior to such action shall be adjusted so that the holder of any
Warrant thereafter exercised may receive the number and classes of shares of
capital stock of the Company which such holder would have owned immediately
following such action if such holder had exercised the Warrant immediately prior
to such action.

                                       3
<PAGE>

      (b) Consolidation, Merger or Sale of the Company. If the Company is a
party to a consolidation, merger or transfer of assets that reclassifies or
changes its outstanding Common Stock, the successor corporation (or corporation
controlling the successor corporation or the Company, as the case may be) shall
by operation of law assume the Company obligations under this Agreement. Upon
consummation of such transaction the Warrant shall automatically become
exercisable for the kind and amount of securities, cash or other assets that the
holder of the Warrant would have owned immediately after the consolidation,
merger or transfer if such holder had exercised the Warrant immediately before
the effective date of such transaction. As a condition to the consummation of
such transaction, the Company shall arrange for the person or entity obligated
to issue securities or deliver cash or other assets upon exercise of the Warrant
to, concurrently with the consummation of such transaction, assume the Company's
obligations hereunder by executing an instrument so providing and further
providing for adjustments which shall be as nearly equivalent as may be
practical to the adjustments provided for in this Section.

      6. Notices to Company and Holder. Any notice or demand authorized by this
Agreement to be given or made by any registered holder of any Warrant
Certificate to or on the Company shall be sufficiently given in compliance with
the Note and Warrant Agreement.

      7. Supplements and Amendments. The Company and Holder may from time to
time supplement or amend this Agreement in order to cure any ambiguity, to
correct or supplement any provision contained herein which may be defective or
inconsistent with any provisions herein, or to make any other provisions in
regard to matters or questions arising hereunder which the Company and Holder
may deem necessary or desirable.

      8. Successors. All the covenants and provisions of this Agreement by or
for the benefit of the Company or Holder shall bind and inure to the benefit of
their respective successors and assigns hereunder.

      9. Governing Law. This Agreement and each Warrant Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
California and for all proposes shall be governed by and construed in accordance
with the laws of said State.

      10. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all proposes be deemed to
be an original, and such counterparts shall together constitute one and the same
instrument.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, as of the date and year first above written.

HOLDER                                        5G Wireless Communications, Inc.

Address:                                      5G Wireless Communications, Inc.
         -----------------------------
                                              4136 Del Rey Ave.
                                              Marina Del Rey, California 90292

Telephone:                                    Telephone:         (310) 754-3784
--------------------------------------

Facsimile:                                    Facsimile:         (310) 754-4004
--------------------------------------

email:

                                       4
<PAGE>

                         5G WIRELESS COMMUNICATIONS INC.

                               WARRANT CERTIFICATE

NO. _____

      This Warrant Certificate certifies that _________ ("HOLDER"), or his
registered assigns, is the registered holder of a warrant (the "WARRANT"), which
shall expire on March 4, 2006 (the "EXPIRATION DATE"). The Warrant entitles
Holder to purchase from the Company before 11:59 p.m. (Pacific Standard Time) on
the "EXPIRATION DATE" _______ Dollars ($___,000) worth of fully paid and
nonassessable shares of Common Stock, at the Exercise Price for each Share,
subject to adjustment in certain events (the "EXERCISE PRICE"), upon surrender
of this Warrant Certificate and payment of the Exercise Price at an office or
agency of the Company, subject to the terms and conditions set forth herein. As
used herein, "SHARE" or "SHARES" refers to the Common Stock and, where
appropriate, to the other securities or property issuable upon exercise of the
Warrant as provided for in the Warrant Agreement (as defined below) upon the
happening of certain events. Unless otherwise set forth herein, all capitalized
terms used herein without definition shall have the meanings ascribed to such
terms in the Warrant Agreement.

      The Exercise Price and the number of Shares purchasable upon exercise of
the Warrant are subject to adjustment upon the occurrence of certain events set
forth in the Warrant Agreement. In the event that upon any exercise of the
Warrant evidenced hereby, the number of Shares purchased shall be less than the
total number of Shares underlying the Warrant evidenced hereby, there shall be
issued to the holder hereof or his or her assignee a new Warrant Certificate
evidencing the number of Shares not purchased. No adjustment shall be made for
any cash dividends on any Shares issuable upon exercise of the Warrant.

      The Warrant may not be exercised after 11:59 P.M. (Pacific Standard Time)
on the Expiration Date. The Warrant evidenced hereby shall thereafter be void.

      The Warrant evidenced by this Warrant Certificate is issued pursuant to a
Warrant Agreement, dated as of March 4, 2004 (the "WARRANT AGREEMENT") duly
executed by the Company and Holder. The Warrant Agreement is hereby incorporated
by reference in and made a part of this instrument and is hereby referred to for
a description of the rights, limitation of rights, obligations, duties and
immunities thereunder of the Company and the holders (the words "holders" or
"holder" meaning the registered holders or registered holder of the Warrant
Certificates).

      The Company may deem and treat the person(s) registered in the Company's
register as the absolute owner(s) of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the
purpose of any exercise hereof, and of any distribution to the holder(s) hereof,
and for all purposes, and the Company shall not be affected by any notice to the
contrary.

THE WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SHARES ISSUABLE UPON
EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF CERTAIN STATES, AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF
EXCEPT PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY
APPLICABLE STATE LAWS, (II) TO THE EXTENT APPLICABLE, RULE 144 UNDER THE ACT (OR
ANY SIMILAR RULE UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES), OR
(III) AN OPINION OF COUNSEL, IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO
COUNSEL TO THE ISSUER, THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND
APPLICABLE STATE LAW IS AVAILABLE.

                                       5
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed under its corporate seal.

5G Wireless Communications, Inc.              Holder

________________________________              _________________________________

                                              _________________________________
                                              Printed Name and Title

                                       6
<PAGE>

                               NOTICE OF EXERCISE

To:  5 G WIRELESS COMMUNICATIONS INC.

The undersigned hereby elects to purchase _________________________ shares of
Common Stock of 5 G WIRELESS COMMUNICATIONS, INC. ("Shares") pursuant to the
terms of the attached Warrant Certificate, and (check the appropriate box):

      |_|   tenders herewith payment for the purchase of ______________________
            shares of Common Stock; and/or

      |_|   elects to exercise Net Issue Exercise, as provided in Section 2(b)
            of the Warrant Agreement, for the purchase of ______________________
            shares of Common Stock.

In exercising the Warrant, the undersigned hereby confirms and acknowledges that
the shares of Common Stock to be issued upon conversion thereof are being
acquired solely for the account of the undersigned and not as a nominee for any
other party, or for investment, and that the undersigned will not offer, sell or
otherwise dispose of any such shares of Common Stock except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended,
or any applicable state securities laws.

Please issue a certificate or certificates representing said shares of Common
Stock in the name of the undersigned or in such other name(s) as is specified
below:

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

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

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

Please issue a new Warrant Certificate for the unexercised portion of the
attached Warrant Certificate in the name of the undersigned or in such other
name(s) as is specified below:

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

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

HOLDER:

----------------------------------      ------------------------------------
Signature of Holder                     Date

----------------------------------      ------------------------------------
Printed Name of Holder                  Amount of Payment

                                       7THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1)
PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS
EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES AND BLUE SKY
LAWS RELATING TO THE DISPOSITION OF SECURITIES, PROVIDED THAT AN OPINION OF
COUNSEL TO SUCH EFFECT IS PROVIDED TO THE COMPANY IN CONNECTION THEREWITH.

                        5G WIRELESS COMMUNICATIONS, INC.
                    CONVERTIBLE SUBORDINATED PROMISSORY NOTE

PN04-__                                                           March __, 2004
$__________                                           Marina Del Rey, California

      1. Principal and Interest.

            1.1 5G Wireless Communications, Inc., a Nevada corporation (the
"COMPANY"), for value received, hereby promises to pay to the order of ________
(the "HOLDER") the amount of ______________ Dollars ($__________).

            1.2 The Note shall bear interest of nine percent (9%) per annum,
simple interest. Interest on the Note shall be computed on the basis of a three
hundred sixty-five (365) day year and actual days elapsed.

            1.3 Upon conversion of the principal and accrued interest hereunder
into capital stock sold in an Equity Financing (referred to herein for
convenience as the "CAPITAL STOCK") or common stock of the Company (the "COMMON
STOCK") upon termination hereof or otherwise pursuant to Section 5 hereof, this
Note shall be terminated in its entirety and surrendered to the Company for
cancellation.

            1.4 The term of this Note is two years from the date of issuance
(the "TERM").

      2. Events of Default. If any of the events specified in this Section 2
shall occur (herein individually referred to as an "EVENT OF DEFAULT"), the
Holder of the Note may, so long as such condition exists, declare the entire
principal and accrued interest hereon immediately due and payable, by notice in
writing to the Company:

            2.1 The institution by the Company of proceedings to be adjudicated
as bankrupt or insolvent, or the consent by it to the institution of bankruptcy
or insolvency proceedings against it or the filing by it of a petition or answer
or consent seeking reorganization or release under the federal bankruptcy laws,
or any other applicable federal or state law, or the consent by it to the filing
of any such petition or the appointment of a receiver, liquidator, assignee,
trustee or other similar official of the Company, or of any substantial part of
its property, or the making by it of an assignment for the benefit of creditors,
or the taking of corporate action by the Company in furtherance of any such
action;

                                       1
<PAGE>

            2.2 If, within sixty (60) days after the commencement of an action
against the Company seeking any bankruptcy, insolvency, reorganization,
liquidation, dissolution or similar relief under any present or future statute,
law or regulation, such action shall not have been resolved in favor of the
Company or all orders or proceedings thereunder affecting the operations or the
business of the Company stayed, or if the stay of any such order or proceeding
shall thereafter be set aside, or if, within sixty (60) days after the
appointment without the consent or acquiescence of the Company of any trustee,
receiver or liquidator of the Company or of all or any substantial part of the
properties of the Company, such appointment shall not have been vacated;

            2.3 Any declared default of the Company under any Senior
Indebtedness (as defined below) that gives the holder thereof the right to
accelerate such Senior Indebtedness, and such Senior Indebtedness is in fact
accelerated by the holder;

            2.4 Failure by the Company to observe or perform any obligations of
the Company to the Holder of the Note on or with respect to the transaction
evidenced by the Note; or

            2.5 The institution of any proceeding for the dissolution or
termination of the Company voluntarily, involuntarily, or by operation of law.

      3. Subordination. The indebtedness evidenced by the Note is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth,
in right of payment to the prior payment in full of all the Company's Senior
Indebtedness, if any, as hereinafter defined.

            3.1 Senior Indebtedness. As used in the Note, the term "SENIOR
INDEBTEDNESS" shall mean the principal of and unpaid accrued interest on: (i)
all indebtedness of the Company to banks, commercial finance lenders, insurance
companies or other financial institutions regularly engaged in the business of
lending money, which is for money borrowed by the Company (whether or not
secured), (ii) any such indebtedness or any debentures, notes or other evidence
of indebtedness issued in exchange for or to refinance such Senior Indebtedness,
or any indebtedness arising from the satisfaction of such Senior Indebtedness by
a guarantor; and (iii) any senior indebtedness approved by the board of
directors of the Company in the future and designated as such.

            3.2 Undertaking. By its acceptance of the Note, the Holder agrees to
execute and deliver such documents, in such form and having such terms as are
reasonably acceptable to the Holder, as may be reasonably requested from time to
time by the Company or the lender of any Senior Indebtedness in order to
implement the foregoing provisions of this Section 3.

      4. Redemption. The Company may redeem this Note in whole or in part at any
time during the first 365 days from the Initial Closing as follows: (a) from and
through days 1 through 182 from the Initial Closing, the Company may redeem the
Notes by paying 130% of principal plus accrued interest through that date, and
(b) from days 183 through 365 from the Initial Closing, the Company may redeem
the Notes by paying 140% of principal plus accrued interest through that date.
Any redemption, in whole or in part, conducted by the Company shall be pro-rata
amongst all Holders of Notes.

                                       2
<PAGE>

      5. Conversion

            5.1 Automatic Conversion. In the event of a Change of Control
(hereinafter defined) or in the event of the Note reaching its Term prior to a
conversion under section 5.2 below or redemption under section 4 above, then the
outstanding principal and accrued interest hereunder shall be automatically
converted into that number of fully paid and non-assessable whole shares of
Common Stock, determined in accordance with Section 5.3 hereof at the Common
Stock Conversion Price (hereinafter defined) immediately prior to the Term or
the consummation of the Change of Control, as applicable. Upon such conversion,
the Note shall be canceled.

            5.2 Conversion.

                  (a) In the event the Company conducts a sale of Capital Stock
with aggregate gross proceeds received, by the Company of at least Three Million
Dollars ($3,000,000) (the "NEW FINANCING") prior to the Term of this Note and
prior to any other conversion hereof by Holder or redemption by the Company,
then all of the outstanding principal and accrued interest hereunder
automatically shall be converted into that number of fully paid and
non-assessable whole shares of capital Stock of the Company determined in
accordance with Section 5.3 hereof at the applicable Conversion Price
concurrently with the initial closing of the New Financing. Upon any such
conversion, this Note shall be canceled.

                  (b) Following the date hereof, at the election of the Holder,
all or a portion of the outstanding principal and accrued interest hereunder may
be converted into that number of fully paid and non-assessable whole shares of
Common Stock determined in accordance with Section 5.3 hereof at the applicable
Conversion Price. Upon any such conversion, the Note shall be canceled and
reissued in part if applicable.

            5.3 Shares Issuable. The number of whole shares of Capital Stock or
Common Stock into which the Note shall be converted pursuant to Sections 5.1 and
5.2 hereof shall be determined by dividing (a) the aggregate principal amount of
the Note, together with all accrued interest to the date of conversion, by (b)
the purchase price of (i) for the capital stock sold in a New Financing if so
selected by Holder, the lowest price per share paid by any investors in the New
Financing, or (ii) for any conversion into Common Stock, the lesser of: (y) 125%
of the closing bid for the Company Common Stock as listed on the OTC Bulletin
Board on the initial Closing date, or (z) 100% of the lowest closing bid price
of the Common Stock as listed on the OTC Bulletin Board over the sixty (60)
trading days immediately prior to any such conversion (respectively, as
applicable for Company Common Stock or Capital Stock, the "CONVERSION PRICE").

            5.4 Conversion Procedures. Holder may convert the Note below, in the
following manners:

                                       3
<PAGE>

                  (a) Automatic Conversion Procedure for Term or Change of
Control. Within ten (10) business days prior to the date the Term is reached or
the Change of Control is scheduled to close, the Company shall send written
notice to the Holder of the Note, at the address last shown on the records of
the Company for the Holder or given by the Holder to the Company for the purpose
of notice or, if no such address appears or is given, at the place where the
principal executive office of the Company is located, notifying Holder that a
Change of Control will be occurring or that the Term is approaching, notifying
the Holder of the conversion effected, specifying the anticipated Conversion
Price, the principal amount of the Note and accrued interest that would be
converted, the date on which such conversion is anticipated to occur, and
calling upon such Holder to surrender the Note to the Company in the manner and
at the place designated.

                  (b) Automatic Conversion Procedure For New Financing. Within
five (5) business days prior to the consummation of the New Financing, the
Company shall send written notice to the Holder of this Note, at the address
last shown on the records of the Company for the Holder or given by the Holder
to the Company for the purpose of notice or, if no such address appears or is
given, at the place where the principal executive office of the Company is
located, notifying the Holder of the impending New Financing. Such notice shall
notify holder that a New Financing will be occurring, notify the Holder of the
form of Capital Stock into which the Note may be converted, specifying the
Conversion Price for such Capital Stock or Common Stock as selected by Holder,
the principal amount of the Note and accrued interest to be converted, the date
on which such conversion is anticipated to occur, and calling upon such Holder
to surrender the Note to the Company in the manner and at the place designated
and to make the election as to whether to convert the Note into Capital Stock
issued in such New Financing or into Common Stock.

            5.5 Delivery of Stock Certificates. Upon the conversion of the Note,
the Company at its expense will issue and deliver to the Holder of the Note a
certificate or certificates for the number of whole shares of Capital Stock or
Common Stock, as applicable, issuable upon such conversion.

            5.6 Legends. Unless subject to an effective registration statement
filed with the United States Securities and Exchange Commission, the stock
certificate or certificates issued or issuable upon conversion of the Note shall
be subject to a stop transfer order and the certificate or certificates
evidencing such securities shall bear the following legend:

            (a)   The following legend under the Act:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
         OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR
         SALE, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
         ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
         SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL OR UPON EVIDENCE
         REASONABLY SATISFACTORY TO 5G WIRELESS COMMUNICATIONS INC. THAT SUCH
         REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF
         SUCH ACT OR ANOTHER APPLICABLE EXEMPTION."

                                       4
<PAGE>

                  (b) Such other legends as may be required under state or
federal securities laws as determined in the opinion of Company counsel.

            5.7 No Fractional Shares. No fractional shares of Capital Stock or
Common Stock shall be issued upon conversion of the Note. In lieu of the Company
issuing any fractional shares to the Holder upon the conversion of the Note, the
Company shall pay to the Holder in cash the amount of outstanding principal
hereunder that is not so converted.

      6. Reservation of Stock Issuable Upon Conversion. In the event of a New
Financing as to Capital Stock and at all other times as to its Common Stock, the
Company shall at all times keep available from its authorized and unissued
shares of Capital Stock and Common Stock (issuable upon conversion thereof),
solely for the purpose of effecting the conversion of the Note, such number of
its shares of Capital Stock and Common Stock, as applicable (and shares of
Common Stock issuable upon conversion thereof), as shall from time to time be
sufficient to effect the conversion of the Note; and if at any time following
any such New Financing the number of authorized but unissued shares of Capital
Stock or Common Stock, as applicable (and shares of Common Stock issuable upon
conversion thereof), shall not be sufficient to effect the conversion of the
entire outstanding principal amount of and accrued interest on this Note, in
addition to such other remedies as shall be available to the Holder of this
Note, the Company will promptly take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Capital Stock or Common Stock, as applicable (and shares of Common
Stock issuable upon conversion thereof), to such number of shares as shall be
sufficient for such purposes.

      7. Assignment. Subject to the restrictions on transfer described in
Section 9 below, the rights and obligations of the Company and the Holder of the
Note shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties. Effective upon any such
assignment, the person or entity to which such rights, interests, and
obligations were assigned shall have and exercise all of the Holder's rights,
interests and obligations hereunder as if such person or entity were the
original Holder of the Note.

      8. Waiver and Amendment. Any provision of the Note may be amended, waived,
or modified upon the written consent of the Company and Holder: provided
however, that any term of all Notes may be amended, waived or modified
simultaneously by written consent of the Company and sixty percent (60%) of the
economic interest of all Holders of the Notes issued as part of this
transaction. Therefore, this Note may be amended even if the Holder of this Note
does not consent to such amendment.

      9. Transfer of the Note or Securities Issuable Upon Conversion Hereof.
With respect to any offer, sale or other disposition of the Note or securities
into which such Note may be converted, the Holder will give written notice to
the Company prior thereto, describing briefly the manner thereof, together with
a written opinion of such Holder's counsel in a form reasonably satisfactory to
the Company's counsel, to the effect that such offer, sale or other distribution
may be effected without registration or qualification (under any federal or
state law then in effect). Promptly upon receiving such written notice and
reasonably satisfactory opinion, if so requested, the Company, as promptly as
practicable, shall notify such Holder that such Holder may sell or otherwise
dispose of the Note or such securities, all in accordance with the terms of the
notice delivered to the Company. If a determination has been made pursuant to
this Section 9 that the opinion of counsel for the Holder is not reasonably
satisfactory to the Company, the Company shall so notify the Holder promptly
after such determination has been made. Each Note thus transferred and each
certificate representing the securities thus transferred shall bear a legend as
to the applicable restrictions on transferability in order to ensure compliance
with the Securities Act of 1933, as amended (the "ACT"), unless in the opinion
of counsel for the Company such legend is not required in order to ensure
compliance with the Act. The Company may issue stop transfer instructions to its
transfer agent in connection with such restrictions.

                                       5
<PAGE>

      10. No Shareholder Rights. Nothing contained in the Note shall be
construed as conferring upon the Holder or any other person the right to vote or
to consent or to receive notice as a shareholder in respect of meetings of
shareholders for the election of directors of the Company or any other matters
or any rights whatsoever as a shareholder of the Company; and no dividends or
interest shall be payable or accrued in respect of the Note or the interest
represented hereby or the Capital Stock or Common Stock, as applicable (or
Common Stock issuable upon conversion thereof), obtainable hereunder until, and
only to the extent that, the Note shall have been converted into equity of the
Company.

      11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, excluding that body of law
relating to conflict of laws.

      12. Charges, Taxes and Expenses. Issuance of a certificate for shares of
Common Stock or Company Capital Stock upon the conversion of the Note shall be
made without charge to the Holder for any issue or other incidental expense in
respect of the issuance of such certificate, all of which expenses shall be paid
by the Company, and such certificate shall be issued in the name of the Holder.

      13. Loss, Theft or Destruction of Note. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft or destruction of the
Note and of indemnity or security reasonably satisfactory to it, the Company
will make and deliver a new Note which shall carry the same rights to interest
(unpaid and to accrue) carried by the Note, stating that such Note is issued in
replacement of the Note, making reference to the original date of issuance of
the Note (and any successors hereto) and dated as of such cancellation, in lieu
of the Note.

      14. Usury. The Note is hereby expressly limited so that in no event
whatsoever, whether by reason of acceleration of maturity of the loan evidenced
hereby or thereby, or otherwise, shall the amount paid or agreed to be paid to
the Holder hereunder for the loan, use, forbearance or detention of money exceed
that permissible under applicable law. If at any time the performance of any
provision hereof or of the Note or any other such agreement involves a payment
exceeding the limit of the price that may be validly charged for the loan, use,
forbearance or detention of money under applicable law, then automatically and
retroactively, ipso facto, the obligation to be performed shall be reduced to
such limit, it being the specific intent of the Company and the Holder that all
payments under the Note are to be credited first to interest as permitted by
law, but not in excess of (i) the agreed rate of interest set forth herein or
(ii) that permitted by law, whichever is the lesser, and the balance toward the
reduction of principal. The provisions of this Section 14 shall never be
superseded or waived and shall control every other provision of the Note and all
other agreements between the Company and the Holder.

                                       6
<PAGE>

      15. Issue Date. The provisions of the Note shall be construed and shall be
given effect in all respects as if the Note had been issued and delivered by the
Company on the earlier of the date hereof or the date of issuance of any Note
for which the Note is issued in replacement. The Note shall be binding upon any
successors or assigns of the Company.

      16. Heading; References. All headings used herein are used for convenience
only and shall not be used to construe or interpret the Note. Except as
otherwise indicated, all references herein to Sections refer to Sections hereof.

      17. Delays. No delay by the Holder in exercising any power or right
hereunder shall operate as a waiver of any power or right.

      18. Severability. If one or more provisions of the Note are held to be
unenforceable under applicable law, such provision shall be excluded from the
Note and the balance of the Note shall be interpreted as if such provision were
so excluded and shall be enforceable in accordance with its terms.

      19. No Impairment. The Company will not, by any voluntary action, avoid or
seek to avoid the observance or performance of any of the terms to be observed
or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of the Note and in the taking
of all such action as may be necessary or appropriate in order to protect the
rights of the Holder of the Note against impairment.

                  [Remainder of page intentionally left blank.]

                                       7
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Note to be issued this ___
day of March, 2004

                                             5G WIRELESS COMMUNICATIONS, INC.

                                             By:
                                                --------------------------------

                                             Title:
                                                   -----------------------------

                                             4136 Del Rey Ave
                                             Marina Del Rey, CA 90292

                                             Tel.: (310) 754-4004

                                             Fax: (310) 754-3784

                                       8

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