Document:

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                                                                     EXHIBIT 4.3

                    PARTICIPATING DEALER'S WARRANT AGREEMENT

      Participating Dealer's Warrant Agreement dated as of_____________ between
Xenonics Holdings, Inc., a Nevada corporation (the "Company"), and________
(hereinafter referred to variously as the "Holder" or "Holders" or the
"Participating Dealer").

                              W I T N E S S E T H:

      WHEREAS, the Company proposes to issue warrants ("Warrants") to the
Participating Dealer to purchase up to an aggregate _______ shares of Common
Stock, $0.001 par value, of the Company ("Common Stock"); and

      WHEREAS, the Participating Dealer has agreed pursuant to the Participating
Dealer's Agreement (the "Participating Dealer's Agreement") dated as of May 27,
2003, between the Company and the Participating Dealer to act as a Participating
Dealer in the Company's private offering of Common Stock at a private offering
price of $.875 per share of Common Stock (the "Private Offering"); and

      WHEREAS, the Warrants are issued pursuant to this Agreement as of the
Closing Date (as such term is defined in the Participating Dealer's Agreement)
by the Company to the Participating Dealer in consideration for, and as part of
the Participating Dealer's compensation in connection with the Participating
Dealer acting as a Participating Dealer pursuant to the Participating Dealer's
Agreement;

      NOW, THEREFORE, in consideration of the premises, the payment by the
Participating Dealer to the Company of an aggregate ______ dollars ($ ________),
the agreements herein set forth and other good and valuable consideration,
hereby acknowledged, the parties hereto agree as follows:

      1.    GRANT. The Participating Dealer (or its designees) is hereby granted
the right to purchase, at any time from July 23, 2003, until 5:30 P.M., New York
time, on July 23, 2008 {five years after the date of this Agreement}, up to an
aggregate of_______________ shares of Common Stock at an exercise price of $1.05
per share, subject to adjustment as provided in Section 8 and subject to the
terms and conditions of this Agreement. Except as set forth herein, the shares
of Common Stock issuable upon exercise of the Warrants are in all respects
identical to the shares of Common Stock being sold by the Company in the Private
Offering pursuant to the terms and provisions of the Participating Dealer's
Agreement. The shares of Common Stock issuable upon exercise of the Warrants are
sometimes hereinafter referred to collectively as the"Securities."

      2.    WARRANT CERTIFICATES. The warrant certificates (the "Warrant
Certificates") delivered and to be delivered pursuant to this Agreement shall be
in the form set forth in Exhibit A, attached hereto and made a part hereof, with
such appropriate insertions, omissions, substitutions, and other variations as
required or permitted by this Agreement.

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      3.    EXERCISE OF WARRANTS. The Warrants initially are exercisable at an
exercise price (subject to adjustment as provided in Section 8 hereof) per share
of Common Stock set forth in Section 6 hereof payable by certified or official
bank check in New York Clearing House funds, subject to adjustment as provided
in Section 8 hereof. Upon surrender of a Warrant Certificate with the annexed
Form of Election to Purchase duly executed, together with payment of the
Exercise Price (as hereinafter defined) for the shares of Common Stock purchased
at the Company's principal executive offices in Los Angeles, California
(presently located at 2236 Rutherford Road, Suite 123, Carlsbad, California),
the registered holder of a Warrant Certificate ("Holder" or "Holders") shall be
entitled to receive a certificate or certificates for the shares of Common Stock
so purchased. The purchase rights represented by each Warrant Certificate are
exercisable at the option of the Holder thereof, in whole or in part (but not as
to fractional shares of the Common Stock underlying the Warrants). Warrants may
be exercised to purchase all or part of the shares of Common Stock represented
thereby. In the case of the purchase of less than all the shares of Common Stock
purchasable under any Warrant Certificate, the Company shall cancel said Warrant
Certificate upon the surrender thereof and shall execute and deliver a new
Warrant Certificate of like tenor for the balance of the shares of Common Stock
purchasable thereunder.

      4.    ISSUANCE OF CERTIFICATES. Upon the exercise of the Warrants, the
issuance of certificates for shares of Common Stock and/or other securities,
properties or rights underlying such Warrants shall be made forthwith (and in
any event within five (5) business days thereafter) without charge to the Holder
thereof including, without limitation, any tax which may be payable in respect
of the issuance thereof, and such certificates shall (subject to the provisions
of Sections 5 and 7 hereof) be issued in the name of, or in such names as may be
directed by, the Holder thereof; provided, however, that the Company shall not
be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any such certificates in a name other
than that of the Holder, and the Company shall not be required to issue or
deliver such certificates unless or until the person or persons requesting the
issuance thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid.

      The Warrant Certificates and the certificates representing the shares of
Common Stock underlying the Warrants (and/or other securities, property or
rights issuable upon the exercise of the Warrants) shall be executed on behalf
of the Company by the manual or facsimile signature of the then Chairman of the
Board of Directors, Chief Executive Officer, President or any Vice President of
the Company. Warrant Certificates shall be dated the date of execution by the
Company upon initial issuance, division, exchange, substitution or transfer.
Certificates representing the shares of Common Stock (and/or other securities,
property or rights issuable upon exercise of the Warrants) shall be dated as of
the Notice Date (regardless of when executed or delivered) and dividend bearing
securities so issued shall accrue dividends from the Notice Date.

      5.    RESTRICTION ON TRANSFER OF WARRANTS. The Holder of a Warrant
Certificate, by its acceptance thereof, covenants and agrees that the Warrants
are being acquired as an investment and not with a view to the distribution
thereof; that the Warrants may not be sold,

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transferred, assigned, hypothecated or otherwise disposed of, in whole or in
part, for a period of one (1) year from the date hereof, except to officers of
the Participating Dealer.

      6.    EXERCISE PRICE.

            6.1   Adjusted Exercise Price. Except as otherwise provided in
Section 8 hereof, the exercise price for the Warrants shall be $1.05 per share
of Common Stock. The adjusted exercise price shall be the price which shall
result from time to time from any and all adjustments of the initial exercise
price in accordance with the provisions of Section 8 hereof. Any transfer of a
Warrant shall constitute an automatic transfer and assignment of the
registration rights set forth in Section 7 hereof with respect to the Securities
or other securities, properties or rights underlying the Warrants.

            6.2   Exercise Price. The term "Exercise Price" herein shall mean
the exercise price or the adjusted exercise price, depending upon the context or
unless otherwise specified.

      7.    REGISTRATION RIGHTS.

            7.1   Legend on the Warrants and Warrants Securities Until
Registration Under the Securities Act of 1933. Until the Warrants and/or Warrant
Securities are sold pursuant to registration with the SEC, they shall bear the
following legend:

            The securities represented by this certificate have not been
      registered under the Securities Act of 1933, as amended ("Act"), and may
      not be offered or sold except pursuant to (i) an effective registration
      statement under the Act, (ii) to the extent applicable, Rule 144 under the
      Act (or any similar rule under such 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 such Act is available.

      The Warrants have been issued to the Participating Dealer under an
exemption from registration under the Act, and the Warrant Certificate
representing the Warrants shall contain the restricted legend provided as part
of Exhibit A annexed hereto.

            7.2   Piggyback Registration. If, at any time commencing after the
date hereof and expiring five (5) years thereafter, the Company proposes to
register any of its securities under the Act (other than pursuant to Form S-4,
Form S-8 or a comparable registration statement) it will give written notice by
registered mail, at least thirty (30) days prior to the filing of each such
registration statement, to the Participating Dealer and to all other Holders of
the Warrants and/or the Warrant Securities of its intention to do so. If the
Participating Dealer or other Holders of the Warrants and/or Warrant Securities
notify the Company within twenty (20) business days after receipt of any such
notice of its or their desire to include any such securities in such proposed
registration statement, the Company shall afford the Participating Dealer and
such Holders of the Warrants and/or Warrant Securities the opportunity to have
any such Warrant Securities registered under such registration

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statement.

   Notwithstanding the provisions of this Section 7.2, the Company shall have
the right at any time after it shall have given written notice pursuant to this
Section 7.2 (irrespective of whether a written request for inclusion of any such
securities shall have been made) to elect not to file any such proposed
registration statement, or to withdraw the same after the filing but prior to
the effective date thereof.

            7.3   Demand Registration.

            (a) At any time commencing after the date hereof and expiring five
      (5) years thereafter, the Holders of the Warrants and/or Warrant
      Securities representing a "Majority" (as hereinafter defined) of such
      securities (assuming the exercise of all of the Warrants) shall have the
      right (which right is in addition to the registration rights under Section
      7.2 hereof), exercisable by written notice to the Company, to have the
      Company prepare and file with the Securities and Exchange Commission (the
      "Commission"), on one occasion, a registration statement on Form SB-2 (or
      comparable registration statement which the Company is then eligible to
      use) and such other documents, including a prospectus, as may be necessary
      in the opinion of both counsel for the Company and counsel for the
      Participating Dealer and Holders, in order to comply with the provisions
      of the Act, so as to permit a private offering and sale of their
      respective Warrant Securities for six (6) consecutive months by such
      Holders and any other Holders of the Warrants and/or Warrant Securities
      who notify the Company within ten (10) days after receiving notice from
      the Company of such request.

            (b) The Company covenants and agrees to give written notice of any
      registration request under this Section 7.3 by any Holder or Holders to
      all other registered Holders of the Warrants and the Warrant Securities
      within ten (10) days from the date of the receipt of any such registration
      request.

            7.4   Covenants of the Company With Respect to Registration. In
connection with any registration under Section 7.2 or 7.3 hereof, the Company
covenants and agrees as follows:

            (a) The Company shall use its best efforts to file a registration
      statement within thirty (30) days of receipt of any demand therefor, shall
      use its best efforts to have any registration statements declared
      effective at the earliest possible time, and shall furnish each Holder
      desiring to sell Warrant Securities such number of prospectuses as shall
      reasonably be requested.

            (b) The Company shall pay all costs (excluding fees and expenses of
      Holder(s)' counsel and any underwriting or selling commissions), fees and
      expenses in connection with all registration statements filed pursuant to
      Sections 7.2 and 7.3(a) hereof including, without limitation, the
      Company's legal and accounting fees, printing expenses, blue sky fees and
      expenses.

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            (c) The Company will take all necessary action which may be required
      in qualifying or registering the Warrant Securities included in a
      registration statement for offering and sale under the securities or blue
      sky laws of such states as reasonably are requested by the Holder(s),
      provided that the Company shall not be obligated to execute or file any
      general consent to service of process or to qualify as a foreign
      corporation to do business under the laws of any such jurisdiction.

            (d) The Company shall indemnify the Holder(s) of the Warrant
      Securities to be sold pursuant to any registration statement and each
      person, if any, who controls such Holders within the meaning of Section 15
      of the Act or Section 20(a) of the Securities Exchange Act of 1934, as
      amended ("Exchange Act"), against all loss, claim, damage, expense or
      liability (including all expenses reasonably incurred in investigating,
      preparing or defending against any claim whatsoever) to which any of them
      may become subject under the Act, the Exchange Act or otherwise, arising
      from such registration statement but only to the same extent and with the
      same effect as the provisions pursuant to which the Company has agreed to
      indemnify the Participating Dealer contained in Section 6 of the
      Participating Dealer's Agreement.

            (e) The Holder(s) of the Warrant Securities to be sold pursuant to a
      registration statement, and their successors and assigns, shall severally,
      and not jointly, indemnify the Company, its officers and directors and
      each person, if any, who controls the Company within the meaning of
      Section 15 of the Act or Section 20(a) of the Exchange Act, against all
      loss, claim, damage, expense or liability (including all expenses
      reasonably incurred in investigating, preparing or defending against any
      claim whatsoever) to which they may become subject under the Act, the
      Exchange Act or otherwise, arising from information furnished by or on
      behalf of such Holders, or their successors or assigns, for specific
      inclusion in such registration statement to the same extent and with the
      same effect as the provisions contained in Section 6 of the Participating
      Dealer's Agreement pursuant to which the Participating Dealer has agreed
      to indemnify the Company.

            (f) Nothing contained in this Agreement shall be construed as
      requiring the Holder(s) to exercise their Warrants prior to the initial
      filing of any registration statement or the effectiveness thereof.

            (g) The Company shall not permit the inclusion of any securities
      other than the Warrant Securities to be included in any registration
      statement filed pursuant to Section 7.3 hereof, or permit any other
      registration statement to be or remain effective during the effectiveness
      of a registration statement filed pursuant to Section 7.3 hereof (other
      than (i) shelf registrations effective prior thereto and (ii)
      registrations on Form S-4 or S-8), without the prior written consent of
      the Holders of the Warrants and Warrant Securities representing a

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      Majority of such securities.

            (h) The Company shall furnish to each Holder participating in the
      offering and to each Participating Dealer, if any, a signed counterpart,
      addressed to such Holder or Participating Dealer, of (i) an opinion of
      counsel to the Company, dated the effective date of such registration
      statement (and, if such registration includes an underwritten private
      offering, an opinion dated the date of the closing under the Participating
      Dealer's Agreement) relating to the due incorporation of the Company, the
      validity of the shares being issued, the due execution and delivery of the
      Participating Dealer's Agreement and Rule 10b-5, and (ii) a "cold comfort"
      letter dated the effective date of such registration statement (and, if
      such registration includes an underwritten private offering, a letter
      dated the date of the closing under the Participating Dealer's Agreement)
      signed by the independent private accountants who have issued a report on
      the Company's financial statements included in such registration
      statement, covering substantially the same matters with respect to such
      registration statement (and the prospectus included therein) and, with
      respect to events subsequent to the date of such financial statements, as
      are customarily covered in accountants' letters delivered to Participating
      Dealers in underwritten private offerings of securities.

            (i) The Company shall as soon as practicable after the effective
      date of the registration statement, and in any event within 15 months
      thereafter, make "generally available to its security holders" (within the
      meaning of Rule 158 under the Act) an earnings statement (which need not
      be audited) complying with Section 11(a) of the Act and covering a period
      of at least 12 consecutive months beginning after the effective date of
      the registration statement.

            (j) The Company shall deliver promptly to each Holder participating
      in the offering requesting the correspondence and memoranda described
      below and to the managing Participating Dealers, copies of all
      correspondence between the Commission and the Company, its counsel or
      auditors and all memoranda relating to discussions with the Commission or
      its staff with respect to the registration statement and permit each
      Holder and Participating Dealer to do such investigation, upon reasonable
      advance notice, with respect to information contained in or omitted from
      the registration statement as it deems reasonably necessary to comply with
      applicable securities laws or rules of the NASD. Such investigation shall
      include access to books, records and properties and opportunities to
      discuss the business of the Company with its officers and independent
      auditors, all to such reasonable extent and at such reasonable times and
      as often as any such Holder or Participating Dealer shall reasonably
      request.

            (k) The Company shall enter into an Participating Dealer's Agreement
      with the managing Participating Dealers selected for such underwriting by
      Holders holding a Majority of the Warrant Securities requested pursuant to

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      Section 7.3(a) to be included in such underwriting, which may be the
      Participating Dealer. Such agreement shall be satisfactory in form and
      substance to the Company, each Holder and such managing Participating
      Dealer(s), and shall contain such representations, warranties and
      covenants by the Company and such other terms as are customarily contained
      in agreements of that type used by the managing Participating Dealer(s).
      The Holders shall be parties to any Participating Dealer's Agreement
      relating to an underwritten sale of their Warrant Securities whether
      pursuant to Section 7.2 or Section 7.3(a) and may, at their option,
      require that any or all of the representations, warranties and covenants
      of the Company to or for the benefit of such Participating Dealer(s) shall
      also be made to and for the benefit of such Holders. Such Holders shall
      not be required to make any representations or warranties to or agreements
      with the Company or the Participating Dealer(s) except as they may relate
      to such Holders and their intended methods of distribution.

            (l) For purposes of this Agreement, the term "Majority" in reference
      to the Holders of Warrants or Warrant Securities, shall mean in excess of
      fifty percent (50%) of the then outstanding Warrants or Warrant Securities
      that (i) are not held by the Company, an affiliate, officer, creditor,
      employee or agent thereof or any of their respective affiliates, members
      of their family, persons acting as nominees or in conjunction therewith
      and (ii) have not been resold to the private pursuant to a registration
      statement filed with the Commission under the Act.

      8.    ADJUSTMENTS TO EXERCISE PRICE AND NUMBER OF SECURITIES.

            8.1   Subdivision and Combination. If the Company shall at any time
subdivide or combine the outstanding shares of Common Stock, the Exercise Price
shall forthwith be proportionately decreased in the case of subdivision or
increased in the case of combination.

            8.2   Stock Dividends and Distributions. If the Company shall pay a
dividend in, or make a distribution of, shares of Common Stock or of the
Company's capital stock convertible into Common Stock, the Exercise Price shall
forthwith be proportionately decreased. An adjustment made pursuant to this
Section 8.2 shall be made as of the record date for the subject stock dividend
or distribution.

            8.3   Adjustment in Number of Securities. Upon each adjustment of
the Exercise Price pursuant to the provisions of this Section 8, the number of
Warrant Securities issuable upon the exercise at the adjusted exercise price of
each Warrant shall be adjusted to the nearest full amount by multiplying a
number equal to the Exercise Price in effect immediately prior to such
adjustment by the number of Warrant Securities issuable upon exercise of the
Warrants immediately prior to such adjustment and dividing the product so
obtained by the adjusted Exercise Price.

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            8.4   Definition of Common Stock. For the purpose of this Agreement,
the term "Common Stock" shall mean (i) the class of stock designated as Common
Stock in the Certificate of Incorporation of the Company as may be amended as of
the date hereof, or (ii) any other class of stock resulting from successive
changes or reclassifications of such Common Stock consisting solely of changes
in par value, or from par value to no par value, or from no par value to par
value.

            8.5   Merger or Consolidation. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental warrant agreement providing that the holder of each
Warrant then outstanding or to be outstanding shall have the right thereafter
(until the expiration of such Warrant) to receive, upon exercise of such
Warrant, the kind and amount of shares of stock and other securities and
property receivable upon such consolidation or merger, by a holder of the number
of securities of the Company for which such Warrant might have been exercised
immediately prior to such consolidation, merger, sale or transfer. Such
supplemental warrant agreement shall provide for adjustments which shall be
identical to the adjustments provided in Section 8. The above provision of this
subsection shall similarly apply to successive consolidations or mergers.

      9.    EXCHANGE AND REPLACEMENT OF WARRANT CERTIFICATES. Each Warrant
Certificate is exchangeable without expense, upon the surrender thereof by the
registered Holder at the principal executive office of the Company, for a new
Warrant Certificate of like tenor and date representing in the aggregate the
right to purchase the same number of Warrant Securities in such denominations as
shall be designated by the Holder thereof at the time of such surrender.

      Upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of any Warrant Certificate, and, in
case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it, and reimbursement to the Company of all reasonable expenses
incidental thereto, and upon surrender and cancellation of the Warrants, if
mutilated, the Company will make and deliver a new Warrant Certificate of like
tenor, in lieu thereof.

      10.   ELIMINATION OF FRACTIONAL INTERESTS. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
upon the exercise of the Warrants, nor shall it be required to issue scrip or
pay cash in lieu of fractional interests, it being the intent of the parties
that all fractional interests shall be eliminated by rounding any fraction up to
the nearest whole number of shares of Common Stock or other securities,
properties or rights.

      11.   RESERVATION AND LISTING OF SECURITIES. The Company shall at all
times reserve and keep available out of its authorized shares of Common Stock,
solely for the purpose of issuance upon the exercise of the Warrants, such
number of shares of Common Stock or other securities, properties or rights as
shall be issuable upon the exercise thereof.

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The Company covenants and agrees that, upon exercise of the Warrants and payment
of the Exercise Price therefor, all shares of Common Stock and other securities
issuable upon such exercise shall be duly and validly issued, fully paid,
non-assessable and not subject to the preemptive rights of any stockholder. As
long as the Warrants shall be outstanding, the Company shall use its best
efforts to cause all shares of Common Stock issuable upon the exercise of the
Warrants to be listed (subject to official notice of issuance) on all securities
exchanges or markets on which the Common Stock issued to the private in
connection herewith may then be listed and/or quoted.

      12.   NOTICES TO WARRANT HOLDERS. Nothing contained in this Agreement
shall be construed as conferring upon the Holders the right to vote or to
consent or to receive notice as a stockholder in respect of any meetings of
stockholders for the election of directors or any other matter, or as having any
rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Warrants and their exercise, any of the following
events shall occur:

            (a) the Company shall take a record of the holders of its shares of
      Common Stock for the purpose of entitling them to receive a dividend or
      distribution payable otherwise than in cash, or a cash dividend or
      distribution payable otherwise than out of current or retained earnings or
      capital surplus (in accordance with applicable law), as indicated by the
      accounting treatment of such dividend or distribution on the books of the
      Company; or

            (b) the Company shall offer to all the holders of its Common Stock
      any additional shares of capital stock of the Company or securities
      convertible into or exchangeable for shares of capital stock of the
      Company, or any option, right or warrant to subscribe therefor; or

            (c) a dissolution, liquidation or winding up of the Company (other
      than in connection with a consolidation or merger) or a sale of all or
      substantially all of its property, assets and business as an entirety
      shall be proposed; then, in any one or more of said events, the Company
      shall give written notice of such event at least thirty (30) days prior to
      the date fixed as a record date or the date of closing the transfer books
      for the determination of the stockholders entitled to such dividend,
      distribution, convertible or exchangeable securities or subscription
      rights, or entitled to vote on such proposed dissolution, liquidation,
      winding up or sale. Such notice shall specify such record date or the date
      of closing the transfer books, as the case may be. Failure to give such
      notice or any defect therein shall not affect the validity of any action
      taken in connection with the declaration or payment of any such dividend,
      or the issuance of any convertible or exchangeable securities, or
      subscription rights, options or warrants, or any proposed dissolution,
      liquidation, winding up or sale.

            13. NOTICES. All notices, requests, consents and other
communications hereunder shall be in writing and shall be deemed to have been
duly made and sent when delivered, or mailed by registered or certified mail,
return receipt requested or by Federal Express or other

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nationally recognized overnight courier:

            (a) If to the registered Holder of the Warrants, to the address of
      such Holder as shown on the books of the Company; or

            (b) If to the Company, to the address set forth in Section 3 hereof
      or to such other address as the Company may designate by notice to the
      Holders.

      14.   SUPPLEMENTS AND AMENDMENTS. The Company and the Participating Dealer
may from time to time supplement or amend this Agreement without the approval of
any Holders of Warrant Certificates (other than the Participating Dealer) 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 the Participating Dealer may deem necessary or desirable
and which the Company and the Participating Dealer deem shall not adversely
affect the interests of the Holders of Warrant Certificates.

      15.   SUCCESSORS. All the covenants and provisions of this Agreement shall
be binding upon and inure to the benefit of the Company, the Holders and their
respective successors and assigns hereunder.

      16.   TERMINATION. This Agreement shall terminate at the close of business
on five years from the Closing Date. Notwithstanding the foregoing, the
indemnification provisions of Section 7 shall survive such termination until the
close of business on seven years from the Closing Date.

      17.   GOVERNING LAW; SUBMISSION TO JURISDICTION. 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 purposes shall be construed in
accordance with the laws of said State without giving effect to the rules of
said State governing the conflicts of laws.

      The Company, the Participating Dealer and the Holders each hereby agrees
that any action, proceeding or claim against it arising out of, or relating in
any way to, this Agreement shall be brought and enforced in the courts of the
State of California or of the United States of America located in the City of
San Diego, California, and irrevocably submits to such jurisdiction, which
jurisdiction shall be exclusive. The Company, the Participating Dealer and the
Holders hereby irrevocably waive any objection to such exclusive jurisdiction or
inconvenient forum. Any such process or summons to be served upon any of the
Company, the Participating Dealer and the Holders (at the option of the party
bringing such action, proceeding or claim) may be served by transmitting a copy
thereof, by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 13 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the
party so served in any action, proceeding or claim. The Company, the
Participating Dealer and the Holders agree that the prevailing party(ies) in any
such action or proceeding shall be entitled to recover from the other party(ies)
all of its/their reasonable legal costs and expenses relating to such action or
proceeding and/or incurred in connection with

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the preparation therefor.

      18.   ENTIRE AGREEMENT; MODIFICATION. This Agreement (including the
Participating Dealer's Agreement to the extent portions thereof are referred to
herein) contains the entire understanding between the parties hereto with
respect to the subject matter hereof and may not be modified or amended except
by a writing duly signed by the party against whom enforcement of the
modification or amendment is sought.

      19.   SEVERABILITY. If any provision of this Agreement shall be held to be
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision of this Agreement.

      20.   CAPTIONS. The caption headings of the Sections of this Agreement are
for convenience of reference only and are not intended, nor should they be
construed as, a part of this Agreement and shall be given no substantive effect.

      21.   BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be
construed to give to any person or corporation other than the Company and the
Participating Dealer and any other registered Holder(s) of the Warrant
Certificates or Warrant Securities any legal or equitable right, remedy or claim
under this Agreement; and this Agreement shall be for the sole benefit of the
Company and the Participating Dealer and any other registered Holders of Warrant
Certificates or Warrant Securities.

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

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

                                         XENONICS HOLDINGS, INC.

                                         By:____________________________
                                         Name:__________________________
                                         Title:_________________________

                                         PARTICIPATING DEALER:

                                         _______________________________

                                         By:____________________________
                                         Name:__________________________
                                         Title:_________________________

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                          (FORM OF WARRANT CERTIFICATE)

      THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES
ISSUABLE UPON EXERCISE THEREOF MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (i)
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, (ii) TO
THE EXTENT APPLICABLE, RULE 144 UNDER SUCH ACT (OR ANY SIMILAR RULE UNDER SUCH
ACT RELATING TO THE DISPOSITION OF SECURITIES), OR (iii) AN OPINION OF COUNSEL,
IF SUCH OPINION SHALL BE REASONABLY SATISFACTORY TO COUNSEL FOR THE ISSUER, THAT
AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE. THE TRANSFER OR
EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS RESTRICTED IN
ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.

                            EXERCISABLE ON OR BEFORE
          5:30 P.M., NEW YORK TIME, (FIFTH ANNIVERSARY OF CLOSING DATE)

Warrant No.
DATED:

                              Warrants to Purchase
                        __________ shares of Common Stock

                               WARRANT CERTIFICATE

      This Warrant Certificate certifies that __________ or registered assigns,
is the registered holder of_______________Warrants to purchase initially, at any
time from {first anniversary of Closing Date} until 5:30 p.m. New York time on
{fifth anniversary of closing date} ("Expiration Date"), up to______________
fully-paid and non-assessable shares of Common Stock, $0.001 par value ("Common
Stock"), of Xenonics Holdings, Inc., a Nevada corporation (the "Company"), at
the initial exercise price, subject to adjustment in certain events (the
"Exercise Price"), of $1.05 per share of Common Stock, upon surrender of this
Warrant Certificate and payment of the Exercise Price at an office or agency of
the Company, but subject to the conditions set forth herein and in the
Participating Dealer's Agreement dated as of the date hereof between the Company
and______________ (the "Warrant Agreement"). Payment of the Exercise Price shall
be made by certified or official bank check in New York Clearing House funds
payable to the order of the Company or by surrender of this Warrant Certificate.

      No Warrant may be exercised after 5:30 p.m., New York time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, hereby shall thereafter be void.

      The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement, which
Warrant Agreement is hereby

<PAGE>

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 Warrants.

      The Warrant Agreement provides that upon the occurrence of certain events
the Exercise Price and the type and/or number of the Company's securities
issuable thereupon may, subject to certain conditions, be adjusted. In such
event, the Company will, at the request of the holder, issue a new Warrant
Certificate evidencing the adjustment in the Exercise Price and the number
and/or type of securities issuable upon the exercise of the Warrants; provided,
however, that the failure of the Company to issue such new Warrant Certificates
shall not in any way change, alter, or otherwise impair, the rights of the
holder as set forth in the Warrant Agreement.

      Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Warrant
Agreement, without any charge except for any tax or other governmental charge
imposed in connection with such transfer.

      Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.

      The Company may deem and treat the registered holder(s) hereof 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
other purposes, and the Company shall not be affected by any notice to the
contrary.

      All terms used in this Warrant Certificate which are defined in the
Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.

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

                                         XENONICS HOLDINGS, INC.

                                         By:____________________________
                                         Name:__________________________
                                         Title:_________________________

<PAGE>

              (FORM OF ELECTION TO PURCHASE PURSUANT TO SECTION 3)

      The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to purchase _______________ shares of
Common Stock of Xenonics Holdings, Inc.; and herewith tenders in payment for
such securities a certified or official bank check payable in New York Clearing
House Funds to the order of Xenonics Holdings, Inc. in the amount of
$_______________________, all in accordance with the terms of Section 3.1 of the
Participating Dealer's Warrant Agreement dated as of (Closing Date) between
Xenonics Holdings, Inc. and __________. The undersigned requests that a
certificate for such securities be registered in the name of ______________,
whose address is _______________, and that such Certificate be delivered to
whose address is ________________.

Dated:_________________________     Signature:__________________________________
                                           (Signature must conform in all
                                           respects to name of holder as
                                           specified on the face of the Warrant
                                           Certificate).

                                           _____________________________________
                                           (Insert Social Security or Other
                                           Identifying Number of Holder)

<PAGE>

                              (FORM OF ASSIGNMENT)

             (To be executed by the registered holder if such holder
                  desires to transfer the Warrant Certificate.)

      FOR VALUE RECEIVED______________________hereby sells, assigns and
transfers unto__________________________________________________________________
                      (Please print name and address of transferee)

this Warrant Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint_______________ Attorney, to
transfer the within Warrant Certificate on the books of the within-named
Company, with full power of substitution.

Dated:_________________________     Signature:__________________________________
                                           (Signature must conform in all
                                           respects to name of holder as
                                           specified on the face of the Warrant
                                           Certificate).

                                           _____________________________________
                                           (Insert Social Security or Other
                                           Identifying Number of Holder)<PAGE>
                                                                     EXHIBIT 4.4

NEITHER THIS WARRANT NOR ANY OF THE SHARES OF CAPITAL STOCK ISSUED UPON ANY
EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS, AND NONE OF SUCH SECURITIES
MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THIS WARRANT OR SUCH SHARES, AS
APPLICABLE, UNDER SUCH ACT AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE LAWS OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                                      Warrant to Purchase Shares of Common Stock

                        WARRANT TO PURCHASE COMMON STOCK
                                       OF
                             XENONICS HOLDINGS, INC.

      This certifies that, for value received, White Rock Capital Partners, L.P.
(the "Holder"), or registered assigns, is entitled, subject to the terms set
forth below, to purchase from Xenonics Holdings, Inc., a Nevada corporation (the
"Company"), shares of the Company's $0.001 par value common stock (the "Common
Stock"), upon surrender hereof, at the principal office of the Company, with the
subscription form attached hereto duly executed, and simultaneous payment
therefor in lawful money of the United States, at the Exercise Price as set
forth in Section 2 below. The Exercise Price of such shares of Common Stock is
subject to adjustment as provided in Section 2 and Section 11 of this Warrant.
The term "Warrant" as used herein shall include this Warrant, and any warrants
delivered in substitution or exchange therefor.

      1.    Term of Warrant. Subject to the terms and conditions set forth
herein, this Warrant shall be exercisable, in whole or in part, during the term
commencing on April 26, 2003 and ending April 25, 2008.

      2.    Number of Shares of Common Stock; Exercise Price.

            (a)   During the term of this Warrant, this Warrant may be exercised
for the purchase of shares of Common Stock.

            (b)   The number of shares of Common Stock that can be purchased
upon the exercise of this Warrant shall be forty thousand (40,000) (as
appropriately adjusted for any anti-dilution rights, stock dividends, splits or
similar events).

            (c)   The Exercise Price at which this Warrant may be exercised
shall be $8.00 per share (as appropriately adjusted for any anti-dilution
rights, stock dividends, splits or similar events).

<PAGE>

      3.    Exercise of Warrant.

            (a)   The purchase rights represented by this Warrant are
exercisable by the Holder in whole or in part, but not for less than one
thousand (1,000) shares at a time (or such lesser number of shares which may
then constitute the maximum number purchasable; such number being subject to
adjustment as provided in Section 11 below), at any time, or from time to time,
during the term hereof as described in Section 1 above, by the surrender of this
Warrant and 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), upon payment
in cash or by check acceptable to the Company of the purchase price of the
shares of Common Stock to be purchased.

      This Warrant shall be deemed to have been exercised immediately prior to
the close of business on the date of its surrender for exercise as provided
above, and the person entitled to receive the shares of Common Stock issuable
upon such exercise shall be treated for all purposes as the holder of record of
such shares as of the close of business on such date. As promptly as practicable
on or after such date and in any event within ten (10) days thereafter, the
Company at its expense shall issue and deliver to the person or persons entitled
to receive the same a certificate or certificates for the number of shares
issuable upon such exercise. In the event that this Warrant is exercised in
part, the Company at its expense will execute and deliver a new Warrant of like
tenor exercisable for the number of shares for which this Warrant may then be
exercised.

      4.    No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the Exercise Price then
in effect multiplied by such fraction.

      5.    Replacement of Warrant. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of loss, theft or destruction, on delivery of an
indemnity agreement reasonably satisfactory in form and substance to the Company
or, in the case of mutilation, on surrender and cancellation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a
new warrant of like tenor and amount.

      6.    Rights of Stockholders. The Holder shall not be entitled to vote or
receive dividends or be deemed the holder of Common Stock or any other
securities of the Company that may at any time be issuable on the exercise
hereof for any purpose, nor shall anything contained herein be construed to
confer upon the Holder, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent
to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, or change of stock to no par
value, consolidation, merger, conveyance, or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until this
Warrant shall have been exercised as provided herein.

                                       2
<PAGE>

      7.    Transfer of Warrant.

            (a)   Warrant Register. The Company will maintain a register (the
"Warrant Register") containing the names and addresses of the Holder or Holders.
Any Holder of this Warrant or any portion hereof may change its address as shown
on the Warrant Register by written notice to the Company requesting such change.
Any notice or written communication required or permitted to be given to the
Holder may be delivered or given by mail to such Holder as shown on the Warrant
Register and at the address shown on the Warrant Register. Until this Warrant is
transferred on the Warrant Register of the Company, the Company may treat the
Holder as shown on the Warrant Register as the absolute owner of this Warrant
for all purposes, notwithstanding any notice to the contrary.

            (b)   Warrant Agent. The Company may, by written notice to the
Holder, appoint an agent for the purpose of maintaining the Warrant Register
referred to in Section 7(a) above, issuing the Common Stock or other securities
then issuable upon the exercise of this Warrant, exchanging this Warrant,
replacing this Warrant, or any or all of the foregoing. Thereafter, any such
registration, issuance, exchange, or replacement, as the case may be, shall be
made at the office of such agent.

            (c)   Transferability and Nonnegotiability of Warrant. This Warrant
may not be transferred or assigned in whole or in part without compliance with
all applicable federal and state securities laws by the transferor and the
transferee (including the delivery of investment representation letters and
legal opinions reasonably satisfactory to the Company, if such are requested by
the Company). Subject to the provisions of this Warrant with respect to
compliance with the Securities Act of 1933, as amended (the "Act"), title to
this Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form annexed hereto) and delivery in the same manner as a negotiable
instrument transferable by endorsement and delivery.

            (d)   Exchange of Warrant Upon a Transfer. On surrender of this
Warrant for exchange, properly endorsed on the Assignment Form and subject to
the provisions of this Warrant with respect to compliance with the Act, the
Company at its expense shall issue to or on the order of the Holder a new
warrant or warrants of like tenor, in the name of the Holder or as the Holder
(on payment by the Holder of any applicable transfer taxes) may direct, for the
number of shares issuable upon exercise hereof. In the event of a partial
transfer by a Holder, the Company shall issue to the holders one or more
appropriate new warrants.

            (e)   Compliance with Securities Laws. All shares of Common Stock
issued upon exercise hereof shall be stamped or imprinted with a legend in
substantially the following form (in addition to any legend required by state
securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH
SHARES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS THE SALE OR TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SAID ACT.

                                       3
<PAGE>

      8.    Reservation of Stock. The Company covenants that during the term
this Warrant is exercisable, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of Common Stock upon the exercise of this Warrant and, from time to time, will
take all steps necessary to amend its charter documents to provide sufficient
reserves of shares of Common Stock issuable upon exercise of this Warrant. The
Company further covenants that all shares that may be issued upon the exercise
of rights represented by this Warrant and payment of the Exercise Price, all as
set forth herein, will be free from all taxes, liens and charges in respect of
the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously or otherwise specified herein). The Company agrees that its
issuance of this Warrant shall constitute full authority to its officers who are
charged with the duty of executing stock certificates to execute and issue the
necessary certificates for shares of Common Stock upon the exercise of this
Warrant. The Company covenants that all such shares of Common Stock will, when
issued, be duly and validly issued, fully paid and nonassessable.

      9.    Notices.

            (a)   Whenever the Exercise Price or number of shares purchasable
hereunder shall be adjusted pursuant to Section 11 hereof, the Company shall
issue a certificate signed by a duly authorized officer setting forth, in
reasonable detail, the event requiring the adjustment, the amount of the
adjustment, the method by which such adjustment was calculated, and the Exercise
Price and number of shares purchasable hereunder after giving effect to such
adjustment, and shall cause a copy of such certificate to be mailed (by
first-class mail, postage prepaid) to the Holder of this Warrant.

            (b)   In case:

                  (i)   the Company shall take a record of the holders of its
Common Stock (or other stock or securities at the time receivable upon the
exercise of this Warrant) for the purpose of entitling them to receive any
dividend or other distribution, or any right to subscribe for or purchase any
shares of stock of any class or any other securities, or to receive any other
right, or

                  (ii)  of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation, or any conveyance of all
or substantially all of the assets of the Company to another corporation, or

                  (iii) of any voluntary dissolution, liquidation or winding-up
of the Company,

then, and in each such case, the Company will mail or cause to be mailed to the
Holder or Holders a notice specifying, as the case may be, (A) the date on which
a record is to be taken for the purpose of such dividend, distribution or right,
and stating the amount and character of such dividend, distribution or right, or
(B) the date on which such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding-up is to take place, and
the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such stock or securities at the time receivable upon the exercise of
this Warrant) shall be entitled to

                                       4
<PAGE>

exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up. Such notice shall be mailed at least 15 days prior to the date
therein specified.

            (c)   All such notices, advices and communications shall be deemed
to have been received (i) in the case of personal delivery, on the date of such
delivery and (ii) in the case of mailing, on the first business day following
the date of such mailing.

      10.   Waivers and Amendments.

            (a)   Any term of this Warrant may be amended or waived only with
the written consent of the Company and the Holder.

            (b)   No waivers of, or exceptions to, any term, condition or
provision of this Warrant, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing waiver of any such term, condition or
provision.

      11.   Adjustments. The Exercise Price and the number of shares purchasable
hereunder are subject to adjustment from time to time as follows:

            (a)   Merger, Sale of Assets, etc. If at any time while this
Warrant, or any portion hereof, is outstanding and unexpired there shall be (i)
a reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, or a reverse triangular merger in which the
Company is the surviving entity but the shares of the Company's capital stock
outstanding immediately prior to the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash, or
otherwise, or (iii) a sale or transfer of the Company's properties and assets
as, or substantially as, an entirety to any other person, then, as a part of
such reorganization, merger, consolidation, sale or transfer, lawful provision
shall be made so that the holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified herein and
upon payment of the Exercise Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such
reorganization, merger, consolidation, sale or transfer that a holder of the
shares deliverable upon exercise of this Warrant would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if this
Warrant had been exercised immediately before such reorganization, merger,
consolidation, sale or transfer, all subject to further adjustment as provided
in this Section 11. The foregoing provisions of this Section 11 shall similarly
apply to successive reorganizations, consolidations, mergers, sales and
transfers and to the stock or securities of any other corporation that are at
the time receivable upon the exercise of this Warrant. If the per share
consideration payable to the Holder hereof for shares in connection with any
such transaction is in a form other than cash or marketable securities, then the
value of such consideration shall be determined in good faith by the Company's
Board of Directors. In all events, appropriate adjustment (as determined in good
faith by the Company's Board of Directors) shall be made in the application of
the provisions of this Warrant with respect to the rights and interests of the
Holder after the transaction, to the end that the provisions of this Warrant
shall be applicable after that event, as

                                       5
<PAGE>

near as reasonably may be, in relation to any shares or other property
deliverable after that event upon exercise of this Warrant.

            (b)   Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant shall
thereafter represent the right to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 11.

            (c)   Split, Subdivision or Combination of Shares. If the Company at
any time while this Warrant, or any portion hereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase
rights under this Warrant exist, into a different number of securities of the
same class, then (i) the Exercise Price for such securities shall be
proportionately decreased in the case of a split or subdivision or
proportionately increased in the case of a combination, and (ii) the number of
shares issuable hereunder shall be proportionately increased or decreased, as
the case may be, in both cases according to the ratio which the total number of
shares of such security to be outstanding immediately after such event bears to
the total number of shares of such security outstanding immediately prior to
such event.

            (d)   Adjustments for Dividends in Stock or Other Securities or
Property. If while this Warrant, or any portion hereof, remains outstanding and
unexpired, the holders of the securities as to which purchase rights under this
Warrant exist at the time shall have received, or, on or after the record date
fixed for the determination of eligible stockholders, shall have become entitled
to receive, without payment therefor, other or additional stock or other
securities or property (other than cash) of the Company by way of dividend, then
and in each case, this Warrant shall represent the right to acquire, in addition
to the number of shares of the security receivable upon exercise of this
Warrant, and without payment of any additional consideration therefor, the
amount of such other or additional stock or other securities or property (other
than cash) of the Company that such holder would hold on the date of such
exercise had it been the holder of record of the security receivable upon
exercise of this Warrant on the date hereof and had thereafter, during the
period from the date hereof to and including the date of such exercise, retained
such shares and/or all other additional stock available by it as aforesaid
during such period, giving effect to all adjustments called for during such
period by the provisions of this Section 11.

            (e)   Certificate as to Adjustments. Upon the occurrence of each
adjustment or readjustment pursuant to this Section 11, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each Holder of this Warrant a certificate
setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based.

            (f)   No Impairment. The Company will not, by amendment of its
charter documents or through any reorganization, transfer of assets,
consolidation, merger, dissolution,

                                       6
<PAGE>

or any other similar voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of this Warrant, but will at times in good faith
assist in the carrying out of all such terms and in the taking of all such
action as may be necessary or appropriate in order to protect the rights of the
holder of this Warrant against impairment due to such event. Without limiting
the generality of the foregoing, the Company (a) will take all action that may
be necessary or appropriate in order that the Company may validly and legally
issue fully paid and nonassessable shares of stock, free from all taxes, liens
and charges with respect to the issue thereof, on the exercise of all of the
Warrants from time to time outstanding, and (b) will not consolidate with or
merge into any other person or permit any such person to consolidate with or
merge into the Company (if the Company is not the surviving person), unless such
other person shall expressly assume in writing and agree to be bound by all the
terms of this Warrant.

      12.   Descriptive Headings and Governing Law. The description headings of
the several sections and paragraphs of this Warrant are inserted for convenience
only and do not constitute a part of this Warrant. This Warrant shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of California without regard to conflicts
of law provisions.

      13.   Speculative Value of Warrant. It is understood and agreed by the
Company and Holder that the Warrant as of the date of issuance has a speculative
value and no definitive value can be expressed.

      14.   Notices. All notices and other communications hereunder shall be
delivered by hand, by depositing the notice in the United States mail postage
prepaid and properly addressed to the recipient or by facsimile transmission to
the parties as follow:

            (a) If to the Company:       Xenonics Holdings, Inc.
                                         2236 Rutherford Road, Suite 123
                                         Carlsbad, California 92008
                                         Telephone: (760) 438-4004
                                         Fax: (760) 438-1184

            (b) If to the Holder:        White Rock Capital Partners, L.P.
                                         3131 Turtle Creek Blvd., Suite 800
                                         Dallas, Texas, 75219

                                       7
<PAGE>

      IN WITNESS WHEREOF, XENONICS HOLDINGS, INC. has caused this Warrant to be
executed by its officer thereunto duly authorized.

Dated: April 26, 2004

                                         XENONICS HOLDINGS, INC.

                                         By:____________________________________
                                            Name:
                                            Title:

                                       8
<PAGE>

                               NOTICE OF EXERCISE

To:   XENONICS HOLDINGS, INC.

      (1)   The undersigned hereby elects to purchase [_________] shares of
Common Stock of XENONICS HOLDINGS, INC., pursuant to the provisions of the
attached Warrant, and tenders herewith payment of the purchase price for such
shares in full.

      (2)   In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of Common Stock to be issued are being acquired
solely for the account of the undersigned and not as a nominee for any other
party, and 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.

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

                                         _______________________________________
                                                        (Name)

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

_______________________________
Name:
Date:

                                       9
<PAGE>

                                 ASSIGNMENT FORM

      FOR VALUE RECEIVED, the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under the within Warrant, with respect to the number
of shares of Common Stock set forth below:

   NAME OF ASSIGNEE                  ADDRESS                   NO. OF SHARES

______________________   ______________________________  _______________________
                         ______________________________
                         ______________________________

and does hereby irrevocably constitute and appoint _____________ Attorney to
make such transfer on the books of the XENONICS HOLDINGS, INC., maintained for
the purpose, with full power of substitution in the premises.

      The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof are being acquired for investment and that the Assignee will not
offer, sell or otherwise dispose of this Warrant or any shares of stock to be
issued upon exercise hereof except under circumstances which will not result in
a violation of the Securities Act of 1933, as amended, or any state securities
laws. Further, the Assignee has acknowledged that upon exercise of this Warrant,
the Assignee shall, if requested by the Company, confirm in writing, in a form
reasonably satisfactory to the Company, that the shares of stock so purchased
are being acquired for investment and not with a view toward distribution or
resale.

Name:____________________________
Dated:___________________________

                                       10

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