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                   CONVERTIBLE SECURED NOTE PURCHASE AGREEMENT

                                      Among

                            GLOBAL TECHNOLOGIES, LTD.

                                       and

                         THE INVESTORS SIGNATORY HERETO

                           Dated as of October 3, 2000

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                   CONVERTIBLE SECURED NOTE PURCHASE AGREEMENT

(this  "AGREEMENT"),  dated as of October 3, 2000,  among  Global  Technologies,
Ltd., a Delaware corporation (the "COMPANY"), and the investors signatory hereto
(each such investor is a "PURCHASER"  and all such investors are,  collectively,
the "PURCHASERS").

         WHEREAS,  subject  to the  terms  and  conditions  set  forth  in  this
Agreement,  and  pursuant  to Section  4(2) of the  Securities  Act of 1933,  as
amended (the  "SECURITIES  ACT"),  the Company  desires to issue and sell to the
Purchasers  and the  Purchasers,  severally and not jointly,  desire to purchase
from the Company,  an aggregate  principal amount of $7,000,000 of the Company's
8% Convertible Notes, due one hundred and fifty (150) days from issuance,  which
shall be in the form of EXHIBIT A (the "NOTES"),  and which are convertible into
shares of the  Company's  common  stock,  $ .01 par value per share (the "COMMON
STOCK").

         NOW,  THEREFORE,  IN CONSIDERATION of the mutual covenants contained in
this Agreement,  and for other good and valuable  consideration  the receipt and
adequacy of which are hereby acknowledged,  the Company and the Purchasers agree
as follows:

                                    ARTICLE I
                                PURCHASE AND SALE

     1.1  THE CLOSING

         (a) (i) THE CLOSING.  Subject to the terms and  conditions set forth in
this  Agreement  the  Company  shall  issue and sell to the  Purchasers  and the
Purchasers  shall,  severally,  and not jointly,  purchase  from the Company the
Notes for an aggregate purchase price of $7,000,000;  each Purchaser agreeing to
purchase  that amount of Notes so indicated  on the  respective  signature  page
attached  hereto.  The  closing  of the  purchase  and  sale of the  Notes  (the
"CLOSING") shall take place at the offices of Robinson Silverman Pearce Aronsohn
& Berman LLP ("ROBINSON SILVERMAN"),  1290 Avenue of the Americas, New York, New
York 10104, immediately following the execution hereof or such later date as the
parties shall mutually agree,  but in any event, no later than October 3, 2000 .
The date of the Closing is hereinafter referred to as the "CLOSING DATE."

              (ii) At the Closing,  the parties  shall deliver or shall cause to
be delivered the following: (A) the Company shall deliver to each Purchaser: (1)
Notes registered in the name of such Purchaser in the aggregate principal amount
indicated below such  Purchaser's  name on the signature page to this Agreement,
(2) the legal opinion of Schnader Harrison Segal & Lewis LLP, outside counsel to
the  Company,  in the form of EXHIBIT  C, (3) an  executed  Registration  Rights
Agreement,  dated the date hereof, among the Company and the Purchasers,  in the
form of EXHIBIT B (the  "REGISTRATION  RIGHTS  AGREEMENT"),  (4) Transfer  Agent
Instructions,  in the form of EXHIBIT E,  delivered to and  acknowledged  by the
Company's  transfer  agent  (the  "TRANSFER  AGENT  INSTRUCTIONS"),  and  (5) an
executed Stock Pledge  Agreement,  dated the date hereof,  among the Company and
the Purchasers in the form of EXHIBIT D (the "PLEDGE  AGREEMENT");  and (B) each
Purchaser will deliver to the Company:  (1) the purchase price  indicated  below
such  Purchaser's  name on the signature page to this Agreement in United States
dollars in immediately available funds by wire transfer to an account designated
in writing by the Company  for such  purpose,  and (2) an  executed  copy of the
Registration Rights Agreement and the Pledge Agreement.
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     1.2 CERTAIN  DEFINED  TERMS.  For purposes of this  Agreement,  "CONVERSION
PRICE,"  "ORIGINAL ISSUE DATE," "TRADING DAY" and "PER SHARE MARKET VALUE" shall
have the  meanings  set forth in the  Notes;  "BUSINESS  DAY" shall mean any day
except  Saturday,  Sunday and any day which shall be a federal  legal holiday in
the United  States or a day on which  banking  institutions  in the State of New
York or the  Commonwealth of  Pennsylvania  are authorized or required by law or
other  governmental   action  to  close;  A  "PERSON"  means  an  individual  or
corporation,  partnership,  trust,  incorporated or unincorporated  association,
joint venture, limited liability company, joint stock company, government (or an
agency or subdivision thereof) or other entity of any kind.

                                   ARTICLE II
                         REPRESENTATIONS AND WARRANTIES

     2.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby makes
the following representations and warranties to the Purchasers:

         (a) ORGANIZATION AND  QUALIFICATION.  The Company is a corporation duly
incorporated,  validly existing and in good standing under the laws of the State
of Delaware with the requisite  corporate power and authority to own and use its
properties and assets and to carry on its business as currently  conducted.  The
Company  has  no  subsidiaries  other  than  as set  forth  in  SCHEDULE  2.1(a)
(collectively the  "SUBSIDIARIES").  Each of the Subsidiaries is an entity, duly
incorporated or otherwise organized, validly existing and in good standing under
the  laws  of  the  jurisdiction  of  its   incorporation  or  organization  (as
applicable),  with  the  requisite  power  and  authority  to own  and  use  its
properties and assets and to carry on its business as currently conducted.  Each
of the Company and the  Subsidiaries  is duly qualified to do business and is in
good standing as a foreign  corporation or other entity in each  jurisdiction in
which the nature of the business  conducted  or property  owned by it makes such
qualification necessary,  except where the failure to be so qualified or in good
standing, as the case may be, could not,  individually or in the aggregate,  (x)
adversely affect the legality,  validity or enforceability of the Securities (as
defined below) or any of this Agreement,  the Registration Rights Agreement, the
Transfer Agent  Instructions,  the Notes or the Pledge Agreement  (collectively,
the "TRANSACTION DOCUMENTS"), (y) have or result in a material adverse effect on
the  results of  operations,  assets,  prospects,  or  condition  (financial  or
otherwise)  of the  Company  and the  Subsidiaries,  taken  as a  whole,  or (z)
adversely  impair the  Company's  ability to perform fully on a timely basis its
obligations  under any of the  Transaction  Documents (any of (x), (y) or (z), a
"MATERIAL ADVERSE EFFECT").

         (b) AUTHORIZATION; ENFORCEMENT. The Company has the requisite corporate
power  and  authority  to  enter  into  and  to  consummate   the   transactions
contemplated by each of the Transaction Documents and otherwise to carry out its
obligations  thereunder.  The execution and delivery of each of the  Transaction
Documents  by  the  Company  and  the  consummation  by it of  the  transactions

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contemplated  thereby have been duly  authorized by all necessary  action on the
part of the Company and no further  action is required by the  Company.  Each of
the  Transaction  Documents  has been duly  executed  by the Company  and,  when
delivered in accordance  with the terms hereof,  will  constitute  the valid and
binding obligation of the Company  enforceable against the Company in accordance
with its terms. Neither the Company nor any Subsidiary is in violation of any of
the  provisions  of its  respective  certificate  or articles of  incorporation,
by-laws or other organizational or charter documents.

         (c)  CAPITALIZATION.  The number of authorized,  issued and outstanding
capital  stock  of the  Company  is set  forth in  SCHEDULE  2.1(C).  Except  as
disclosed in SCHEDULE 2.1(C),  the Company owns all of the capital stock of each
Subsidiary.  No shares of Common  Stock are  entitled to  preemptive  or similar
rights,  nor is any  holder  of  the  securities  of  the  Company  entitled  to
preemptive or similar rights arising out of any agreement or understanding  with
the Company by virtue of any of the Transaction Documents. Except as a result of
the purchase  and sale of the Notes and except as disclosed in SCHEDULE  2.1(C),
there are no outstanding options, warrants, script rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exchangeable for, or giving any Person any right
to  subscribe  for or  acquire,  any  shares  of  Common  Stock,  or  contracts,
commitments,  understandings,  or  arrangements  by  which  the  Company  or any
Subsidiary is or may become bound to issue additional shares of Common Stock, or
securities or rights  convertible or  exchangeable  into shares of Common Stock.
Except as disclosed  in SCHEDULE  2.1(C),  the issue and sale of the  Underlying
Shares (as hereinafter defined) will not obligate the Company to issue shares of
Common Stock or other securities to any Person other than the Purchaser and will
not result in a right of any holder of Company securities to adjust the exercise
or conversion or reset price under such securities.

         (d)  ISSUANCE  OF THE NOTES.  The Company  will have (and will,  at all
times  while  Notes are  outstanding,  maintain)  an  adequate  reserve  of duly
authorized shares of Common Stock,  reserved for issuance to the holders of such
Notes, to enable it to perform its conversion and other  obligations  under this
Agreement.  Such number of reserved and  available  shares of Common Stock shall
not be less than 200% of the  number of shares of Common  Stock  which  would be
issuable upon conversion in full of the Notes assuming such conversion  occurred
on the Original  Issue Date,  the Notes remain  outstanding  for one hundred and
fifty (150) days and all  interest is paid in shares of Common  Stock.  All such
authorized  shares of Common  Stock shall be duly  reserved  for issuance to the
holders of the Notes. The shares of Common Stock issuable upon conversion of the
Notes are collectively  referred to herein as the "UNDERLYING SHARES." The Notes
and  the  Underlying  Shares  are  collectively   referred  to  herein  as,  the
"SECURITIES."  When issued in accordance with the Notes,  the Underlying  Shares
will be duly authorized, validly issued, fully paid and nonassessable.

         (e) NO  CONFLICTS.  The  execution,  delivery  and  performance  of the
Transaction  Documents by the Company and the consummation by the Company of the
transactions  contemplated  thereby  do not and  will not (i)  conflict  with or
violate any  provision  of the  Company's  or any  Subsidiary's  certificate  or
articles of  incorporation,  bylaws or other charter  documents (each as amended
through the date hereof),  or (ii) subject to obtaining  the Required  Approvals
(as defined  below),  conflict  with, or constitute a default (or an event which
with notice or lapse of time or both would become a default)  under,  or give to
others any rights of termination,  amendment, acceleration or cancellation (with
or without notice,  lapse of time or both) of, any agreement,  credit  facility,

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debt or other instrument  (evidencing a Company or Subsidiary debt or otherwise)
or other  understanding  to which the Company or any Subsidiary is a party or by
which  any  property  or  asset of the  Company  or any  Subsidiary  is bound or
affected,  or (iii) result in a violation of any law, rule,  regulation,  order,
judgment,  injunction,  decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and
state securities laws and regulations), or by which any property or asset of the
Company  or a  Subsidiary  is bound or  affected;  except in the case of each of
clauses (ii) and (iii), as could not, individually or in the aggregate,  have or
result in a Material  Adverse  Effect.  The business of the Company is not being
conducted in violation of any law,  ordinance or regulation of any  governmental
authority,  except for violations which, individually or in the aggregate, could
not have or result in a Material Adverse Effect.

         (f)  FILINGS,  CONSENTS  AND  APPROVALS.  Neither  the  Company nor any
Subsidiary is required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration  with, any court or other
federal,  state,  local or other  governmental  authority  or  other  Person  in
connection  with the execution,  delivery and  performance by the Company of the
Transaction  Documents,  other than (i) the filings required pursuant to Section
3.10,  (ii)  the  filing  with  the  Securities  and  Exchange  Commission  (the
"Commission") of a registration  statement meeting the requirements set forth in
the  Registration  Rights  Agreement  and covering the resale of the  Underlying
Shares by the Purchasers (the "UNDERLYING SHARES REGISTRATION STATEMENT"), (iii)
the  application(s)  to the Nasdaq National Market ("NASDAQ") for the listing of
the  Underlying  Shares for trading on the NASDAQ  (and with any other  national
securities  exchange or market on which the Common  Stock is then listed) in the
time and manner required thereby,  (iv) applicable Blue Sky filings,  and (v) in
all other cases where the failure to obtain such consent, waiver,  authorization
or order, or to give such notice or make such filing or  registration  could not
have or result in,  individually or in the aggregate,  a Material Adverse Effect
(collectively, the "REQUIRED APPROVALS").

         (g) LITIGATION;  PROCEEDINGS.  Except as disclosed in SCHEDULE  2.1(G),
there  is  no  action,  suit,  inquiry,  notice  of  violation,   proceeding  or
investigation pending or, to the knowledge of the Company, threatened against or
affecting  the  Company or any of its  Subsidiaries  or any of their  respective
properties  before or by any court,  arbitrator,  governmental or administrative
agency or  regulatory  authority  (federal,  state,  county,  local or  foreign)
(collectively,  an  "ACTION")  which (i)  adversely  affects or  challenges  the
legality,  validity or enforceability of any of the Transaction Documents or the
Securities or (ii) could, if there were an unfavorable decision, individually or
in the  aggregate,  have or result in a Material  Adverse  Effect.  Neither  the
Company nor any Subsidiary,  nor any director or officer thereof, is or has been
the subject of any Action  involving  (A) a claim of  violation  of or liability
under  federal or state  securities  laws or (B) a claim of breach of  fiduciary
duty;  (iii) the Company does not have pending before the Commission any request
for  confidential  treatment of information  and the Company has no knowledge of
any expected such request that would be made prior to the Effectiveness Date (as
defined in the Registration Rights Agreement);  and (iv) there has not been, and
to the best of the Company's knowledge there is not pending or contemplated, any
investigation  by the Commission  involving the Company or any current or former
director or officer of the Company.

         (h) NO DEFAULT OR  VIOLATION.  Except as disclosed in SCHEDULE  2.1(H),
neither the Company nor any  Subsidiary  (i) is in default under or in violation
of (and no event has occurred  which has not been waived  which,  with notice or
lapse  of  time or  both,  would  result  in a  default  by the  Company  or any

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Subsidiary  under),  nor has the Company or any Subsidiary  received notice of a
claim that it is in default under or that it is in violation of, any  indenture,
loan or credit  agreement or any other  agreement or instrument to which it is a
party or by which it or any of its properties is bound,  (ii) is in violation of
any  order  of any  court,  arbitrator  or  governmental  body,  or  (iii) is in
violation of any statute, rule or regulation of any governmental  authority,  in
each case of clauses (i), (ii) or (iii) above,  except as could not individually
or in the aggregate, have or result in a Material Adverse Effect.

         (i) PRIVATE OFFERING.  Assuming the accuracy of the representations and
warranties  of the  Purchasers  set forth in  Sections  2.2(b)-(g),  the  offer,
issuance and sale of the Securities to the Purchasers as contemplated hereby are
exempt from the  registration  requirements of the Securities  Act.  Neither the
Company nor any Person acting on its behalf has taken or is, to the knowledge of
the Company,  contemplating  taking any action which could subject the offering,
issuance  or  sale  of the  Securities  to the  Purchasers  to the  registration
requirements of the Securities Act including soliciting any offer to buy or sell
the Securities by means of any form of general solicitation or advertising.

         (j) SEC  REPORTS;  FINANCIAL  STATEMENTS.  The  Company  has  filed all
reports required to be filed by it under the Securities Exchange Act of 1934, as
amended  (the  "EXCHANGE  ACT"),  including,  without  limitation,  all  filings
required  pursuant  to  Sections  13(a)  or  15(d)  thereof,  for the two  years
preceding the date hereof (or such shorter period as the Company was required by
law to file such material) (the foregoing materials being collectively  referred
to  herein  as the  "SEC  REPORTS"  and,  together  with the  Schedules  to this
Agreement, the "DISCLOSURE MATERIALS") on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension.  As of their respective dates, the SEC Reports
complied in all material  respects with the  requirements  of the Securities Act
and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder,  and none of the SEC  Reports,  when  filed,  contained  any  untrue
statement of a material  fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the  circumstances  under which they were made,  not  misleading.  All  material
agreements to which the Company is a party or to which the property or assets of
the  Company  are  subject  have been filed as  exhibits  to the SEC  Reports as
required  under the  Exchange  Act.  The  financial  statements  of the  Company
included in the SEC Reports  comply in all  material  respects  with  applicable
accounting  requirements  and the rules and  regulations of the Commission  with
respect  thereto as in effect at the time of filing.  Such financial  statements
have been prepared in accordance with generally accepted  accounting  principles
applied on a consistent  basis during the periods involved  ("GAAP"),  except as
may be otherwise  specified in such  financial  statements or the notes thereto,
and fairly  present in all  material  respects  the  financial  position  of the
Company and its  consolidated  subsidiaries  as of and for the dates thereof and
the results of operations and cash flows for the periods then ended, subject, in
the  case  of  unaudited  statements,  to  normal,  immaterial,  year-end  audit
adjustments. Since October 28, 1999, except as specifically disclosed in the SEC
Reports,  (a)  there  has been no  event,  occurrence  or  development  that has
resulted or that could  reasonably  be expected to result in a Material  Adverse
Effect,  (b) the  Company  has  not  incurred  any  liabilities  (contingent  or
otherwise)  other  than (x)  liabilities  incurred  in the  ordinary  course  of
business  consistent  with past practice and (y)  liabilities not required to be
reflected in the Company's  financial  statements  pursuant to GAAP or otherwise
required to be disclosed in filings  made with the  Commission,  (c) the Company
has not altered its method of accounting or the identity of its auditors and (d)

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the Company has not  declared  or made any  payment or  distribution  of cash or
other  property to its  stockholders  or officers  or  directors  (other than in
compliance with existing Company stock option plans) with respect to its capital
stock, or purchased, redeemed (or made any agreements to purchase or redeem) any
shares of its capital stock.

         (k) INVESTMENT COMPANY. The Company is not, and is not an Affiliate (as
defined in Rule 405 under the Securities Act) of, an "investment company" within
the meaning of the Investment Company Act of 1940, as amended.

         (l) CERTAIN FEES. No fees or commissions will be payable by the Company
to any  broker,  financial  advisor  or  consultant,  finder,  placement  agent,
investment  banker,  bank or  other  Person  with  respect  to the  transactions
contemplated  by this  Agreement.  The Purchasers  shall have no obligation with
respect to any fees or with  respect to any claims made by or on behalf of other
Persons  for  fees of a type  contemplated  in this  Section  that may be due in
connection with the  transactions  contemplated  by this Agreement.  The Company
shall indemnify and hold harmless the  Purchasers,  their  employees,  officers,
directors,  agents,  and partners,  and their  respective  Affiliates,  from and
against all claims,  losses,  damages, costs (including the costs of preparation
and  attorney's  fees) and  expenses  suffered in respect of any such claimed or
existing fees, as such fees and expenses are incurred.

         (m) SOLICITATION  MATERIALS.  Neither the Company nor any Person acting
on the Company's behalf has solicited any offer to buy or sell the Securities by
means of any form of general solicitation or advertising.

         (n)  FORM  S-3  ELIGIBILITY.   The  Company  is  eligible  to  register
securities for resale under Form S-3 promulgated under the Securities Act.

         (o) SENIORITY. No indebtedness of the Company is senior to the Notes in
right of  payment,  whether  with  respect to interest  or upon  liquidation  or
dissolution, or otherwise.

         (p) LISTING AND  MAINTENANCE  REQUIREMENTS.  Except as set forth in the
SEC Reports,  the Company has not, in the two years  preceding  the date hereof,
received notice (written or oral) from the NASDAQ, any stock exchange, market or
trading facility on which the Common Stock is or has been listed (or on which it
has been  quoted) to the effect that the Company is not in  compliance  with the
listing  or  maintenance  requirements  of  such  exchange,  market  or  trading
facility.  The Company is, and has no reason to believe  that it will not in the
foreseeable  future  continue  to be, in  compliance  with all such  listing and
maintenance requirements.

         (q) PATENTS AND TRADEMARKS.  The Company and its Subsidiaries  have, or
have rights to use,  all patents,  patent  applications,  trademarks,  trademark
applications,  service marks, trade names, copyrights, licenses and rights which
are necessary or material for use in connection with their respective businesses
as  described  in the SEC  Reports and which the failure to so have would have a
Material Adverse Effect  (collectively,  the  "INTELLECTUAL  PROPERTY  RIGHTS").
Neither the Company nor any  Subsidiary  has received a written  notice that the
Intellectual Property Rights used by the Company or its Subsidiaries violates or
infringes  upon the rights of any Person.  To the best knowledge of the Company,
all such  Intellectual  Property Rights are enforceable to the best knowledge of
the Company and there is no existing  infringement  by another  Person of any of
the Intellectual Property Rights.

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         (r) REGISTRATION RIGHTS;  RIGHTS OF PARTICIPATION.  Except as set forth
on  SCHEDULE  6(B) to the  Registration  Rights  Agreement,  the Company has not
granted  or agreed to grant to any Person  any  rights  (including  "piggy-back"
registration  rights) to have any securities of the Company  registered with the
Commission or any other  governmental  authority  which have not been satisfied.
Except as set forth on SCHEDULE 6(B) to the Registration  Rights  Agreement,  no
Person has any right of first refusal, preemptive right, right of participation,
or any similar right to  participate  in the  transactions  contemplated  by the
Transaction Documents.

         (s) REGULATORY  PERMITS.  The Company and its Subsidiaries  possess all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state or foreign  regulatory  authorities  necessary to conduct their respective
businesses as described in the SEC Reports,  except where the failure to possess
such permits could not,  individually  or in the aggregate,  have or result in a
Material Adverse Effect  ("MATERIAL  PERMITS"),  and neither the Company nor any
such  Subsidiary  has  received  any  notice  of  proceedings  relating  to  the
revocation or modification of any Material Permit.

         (t) TITLE.  Except as disclosed in SCHEDULE 2.1(T), the Company and the
Subsidiaries  have good and marketable  title in fee simple to all real property
owned  by  them  which  is  material  to the  business  of the  Company  and its
Subsidiaries  and good and  marketable  title in all personal  property owned by
them which is material to the business of the Company and its  Subsidiaries,  in
each case free and clear of all  Liens,  except  for Liens as do not  materially
affect the value of such  property  and do not  interfere  with the use made and
proposed to be made of such  property by the Company and its  Subsidiaries.  Any
real  property  and  facilities   held  under  lease  by  the  Company  and  its
Subsidiaries are held by them under valid,  subsisting and enforceable leases of
which the Company and its  Subsidiaries  are in compliance  and do not interfere
with the use made and proposed to be made of such  property and buildings by the
Company and its Subsidiaries.

         (u) LABOR  RELATIONS.  No  material  labor  problem  exists  or, to the
knowledge of the Company,  is imminent  with respect to any of the  employees of
the Company.

         (v)  DISCLOSURE.  The Company  confirms  that  neither it nor any other
Person acting on its behalf has provided any of the  Purchasers or its agents or
counsel with any  information  that  constitutes  or might  constitute  material
non-public information. The Company understands and confirms that the Purchasers
shall be relying on the foregoing  representations in effecting  transactions in
securities of the Company.  All disclosure provided to the Purchasers  regarding
the Company, its business and the transactions  contemplated  hereby,  including
the  Schedules to this  Agreement,  furnished by or on behalf of the Company are
true and correct and do not contain any untrue  statement of a material  fact or
omit to state any material fact necessary in order to make the  statements  made
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.

     2.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser hereby
for itself and for no other Purchaser  represents and warrants to the Company as
follows:

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         (a)  ORGANIZATION;   AUTHORITY.   Such  Purchaser  is  an  entity  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction of its organization (which is set forth below such Purchaser's name
on the  signature  page to this  Agreement)  with  the  requisite  corporate  or
partnership power and authority to enter into and to consummate the transactions
contemplated  by the  Transaction  Documents  and  otherwise  to  carry  out its
obligations  thereunder.  The  purchase  by  such  Purchaser  of the  Securities
hereunder has been duly  authorized by all necessary  action on the part of such
Purchaser. Each of this Agreement and the Registration Rights Agreement has been
duly  executed by such  Purchaser at the address for notice set forth below such
Purchaser's name on the signature page to this Agreement,  and when delivered by
such Purchaser in accordance  with the terms hereof,  will  constitute the valid
and legally  binding  obligation of such  Purchaser,  enforceable  against it in
accordance with its terms.

         (b)  INVESTMENT  INTENT.  Such Purchaser is acquiring the Securities as
principal for its own account for  investment  purposes only and not with a view
to or for distributing or reselling such Securities or any part thereof, without
prejudice, however, to such Purchaser's right, subject to the provisions of this
Agreement  and  the  Registration  Rights  Agreement  at all  times  to  sell or
otherwise dispose of all or any part of such Securities pursuant to an effective
registration  statement under the Securities Act or under an exemption from such
registration  and in compliance  with  applicable  federal and state  securities
laws.  While it is the  intention  of such  Purchaser  to hold  the  Securities,
nothing  contained herein shall be deemed a  representation  or warranty by such
Purchaser to hold Securities for any period of time. Such Purchaser is acquiring
the Securities hereunder in the ordinary course of its business.  Such Purchaser
does not have any agreement or understanding,  directly or indirectly,  with any
Person to distribute the Securities.

         (c)  PURCHASER  STATUS.  At the time such  Purchaser  was  offered  the
Securities,  it was,  and at the date hereof it is an  "accredited  investor" as
defined in Rule 501(a) under the  Securities  Act.  Such  Purchaser has not been
formed solely for the purpose of acquiring the Securities.

         (d)  EXPERIENCE  OF SUCH  PURCHASER.  Such  Purchaser,  either alone or
together  with its  representatives,  has  such  knowledge,  sophistication  and
experience in business and  financial  matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Securities, and has so
evaluated the merits and risks of such investment.

         (e)  ABILITY  OF SUCH  PURCHASER  TO  BEAR  RISK  OF  INVESTMENT.  Such
Purchaser is able to bear the economic risk of an  investment in the  Securities
and, at the present time, is able to afford a complete loss of such investment.

         (f) ACCESS TO  INFORMATION.  Such  Purchaser  acknowledges  that it has
reviewed the Disclosure  Materials and has been afforded (i) the  opportunity to
ask such questions as it has deemed  necessary of, and to receive  answers from,
representatives  of the  Company  concerning  the  terms and  conditions  of the
offering  of the  Securities  and the  merits  and  risks  of  investing  in the
Securities;  (ii) access to  information  about the  Company  and the  Company's
financial condition, results of operations, business, properties, management and
prospects  sufficient  to enable it to evaluate  its  investment;  and (iii) the
opportunity to obtain such additional information which the Company possesses or

                                       8
<PAGE>
can acquire without  unreasonable effort or expense that is necessary to make an
informed  investment  decision with respect to the  investment and to verify the
accuracy  and  completeness  of the  information  contained  in  the  Disclosure
Materials. Neither such inquiries nor any other investigation conducted by or on
behalf of such Purchaser or its  representatives or counsel shall modify,  amend
or affect such Purchaser's right to rely on the truth, accuracy and completeness
of the  Disclosure  Materials and the Company's  representations  and warranties
contained in the Transaction Documents.

         (g)  GENERAL  SOLICITATION.   Such  Purchaser  is  not  purchasing  the
Securities as a result of or subsequent to any advertisement, article, notice or
other  communication  regarding  the  Securities  published  in  any  newspaper,
magazine or similar media or broadcast over  television or radio or presented at
any seminar or any other general solicitation or general advertisement.

         (h) RELIANCE.  Such Purchaser understands and acknowledges that (i) the
Securities  are being  offered  and sold to it  without  registration  under the
Securities  Act in a  private  placement  that is exempt  from the  registration
provisions of the Securities Act and (ii) the  availability  of such  exemption,
depends in part on, and the Company will rely upon the accuracy and truthfulness
of, the foregoing  representations  and such Purchaser  hereby  consents to such
reliance.

         The Company acknowledges and agrees that no Purchaser makes or has made
any representations or warranties with respect to the transactions  contemplated
hereby other than those specifically set forth in this Section 2.2.

                                   ARTICLE III
                         OTHER AGREEMENTS OF THE PARTIES

     3.1 TRANSFER RESTRICTIONS.  (a) Securities may only be disposed of pursuant
to an effective  registration statement under the Securities Act, to the Company
or pursuant to an available  exemption  from or in a transaction  not subject to
the registration  requirements of the Securities Act, and in compliance with any
applicable federal and state securities laws. In connection with any transfer of
Securities other than pursuant to an effective  registration statement or to the
Company,  except as  otherwise  set forth  herein,  the  Company may require the
transferor  thereof to provide to the Company an opinion of counsel  selected by
the  transferor,  the form and  substance of which  opinion  shall be reasonably
satisfactory  to the Company,  to the effect that such transfer does not require
registration of such  transferred  Securities under the Securities Act. Any such
transferee shall agree in writing to be bound by the terms of this Agreement and
shall have the rights of a Purchaser  under this Agreement and the  Registration
Rights Agreement. Each Purchaser shall indicate its intention to sell Underlying
Shares  under Rule 144  promulgated  under the  Securities  Act by checking  the
appropriate box in the conversion notice.

         (b) The Purchasers  agree to the imprinting,  so long as is required by
this Section 3.1(b), of the following legend on the Securities:

                                       9
<PAGE>
          NEITHER  THESE   SECURITIES  NOR  THE  SECURITIES   INTO  WHICH  THESE
     SECURITIES ARE  CONVERTIBLE  HAVE BEEN  REGISTERED  WITH THE SECURITIES AND
     EXCHANGE  COMMISSION OR THE SECURITIES  COMMISSION OF ANY STATE IN RELIANCE
     UPON AN EXEMPTION  FROM  REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED (THE "SECURITIES  ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED OR
     SOLD  EXCEPT  PURSUANT TO AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE
     SECURITIES  ACT  OR  PURSUANT  TO  AN  AVAILABLE  EXEMPTION  FROM,  OR IN A
     TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
     ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

         The Underlying  Shares shall not contain the legend set forth above nor
any  other  legend if the  conversion  of  Notes,  occurs  at any time  while an
Underlying Shares Registration  Statement is effective under the Securities Act,
or in the  event  there  is  not an  effective  Underlying  Shares  Registration
Statement,  if, in the opinion of counsel to the  Company,  at such time as such
legend is not required  under  applicable  requirements  of the  Securities  Act
(including judicial  interpretations  and pronouncements  issued by the staff of
the Commission).  The Company shall cause its counsel to issue the legal opinion
included in the Transfer Agent  Instructions to the Company's  transfer agent on
the date that an Underlying Shares Registration  Statement is declared effective
by the Commission  (such date, the  "EFFECTIVE  DATE").  The Company agrees that
following  the  Effective  Date,  it will,  no later than three (3) Trading Days
following  the  delivery  by a  Purchaser  to the  Company of a  certificate  or
certificates  representing  Underlying Shares issued with a restrictive  legend,
deliver to such Purchaser  certificates  representing such shares which shall be
free  from all  restrictive  and other  legends.  The  Company  may not make any
notation  on its  records  or give  instructions  to any  transfer  agent of the
Company which enlarge the restrictions of transfer set forth in this Section.

     3.2 ACKNOWLEDGMENT OF DILUTION.  The Company acknowledges that the issuance
of Underlying Shares upon the conversion of the Notes will result in dilution of
the outstanding  shares of Common Stock, which dilution may be substantial under
certain market conditions.  The Company further acknowledges that its obligation
to issue  Underlying  Shares upon conversion of the Notes is  unconditional  and
absolute,  subject to the limitations set forth in the Notes,  regardless of the
effect of any such dilution.

     3.3 FURNISHING OF  INFORMATION.  As long as the Purchasers own  Securities,
the Company  covenants to timely file (or obtain  extensions in respect  thereof
and file within the applicable grace period) all reports required to be filed by
the  Company  after the date hereof  pursuant  to Section  13(a) or 15(d) of the
Exchange Act. As long as the  Purchasers own  Securities,  if the Company is not
required to file reports pursuant to such sections,  it will prepare and furnish
to the  Purchasers  and make publicly  available in accordance  with Rule 144(c)
promulgated  under the  Securities  Act such  information as is required for the
Purchasers  to  sell  the  Securities  under  Rule  144  promulgated  under  the
Securities  Act. The Company  further  covenants  that it will take such further
action as any holder of Securities  may  reasonably  request,  all to the extent
required  from time to time to enable  such  Person  to sell  Underlying  Shares
without  registration  under the  Securities  Act within the  limitation  of the
exemptions  provided by Rule 144 promulgated under the Securities Act, including
causing its attorneys to render and deliver any legal opinion  required in order

                                       10
<PAGE>
to permit a  Purchaser  to receive  Underlying  Shares  free of all  restrictive
legends and to subsequently  sell Underlying  Shares under Rule 144 upon receipt
of a notice of an  intention  to sell or other  form of notice  having a similar
effect.  Upon the request of any such Person,  the Company shall deliver to such
Person a written certification of a duly authorized officer as to whether it has
complied with such requirements.

     3.4  INTEGRATION.  The Company shall not, and shall use its best efforts to
ensure that, no Affiliate of the Company shall,  sell, offer for sale or solicit
offers to buy or  otherwise  negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the  Securities  in a manner that would  require the  registration  under the
Securities Act of the sale of the Securities to the Purchasers, or that would be
integrated  with the offer or sale of the  Securities  for the  purposes  of the
rules and regulations of NASDAQ.

     3.5 INCREASE IN AUTHORIZED  SHARES. If on any date the Company would be, if
a notice of conversion was to be delivered on such date,  precluded from issuing
200% of the  number  of  Underlying  Shares  as would  then be  issuable  upon a
conversion  in full of the Notes (the  "CURRENT  REQUIRED  MINIMUM")  due to the
unavailability  of a sufficient  number of  authorized  but unissued or reserved
shares of Common Stock, then the Board of Directors of the Company shall use its
best  efforts to promptly  prepare and mail to the  stockholders  of the Company
proxy materials requesting  authorization to amend the Company's  certificate or
articles of incorporation to increase the number of shares of Common Stock which
the  Company  is  authorized  to issue to at least  such  number  of  shares  as
reasonably  requested by the  Purchasers  in order to provide for such number of
authorized  and unissued  shares of Common Stock to enable the Company to comply
with its issuance, conversion, exercise and reservation of shares obligations as
set forth in this  Agreement  and the Notes (the sum of (x) the number of shares
of Common Stock then  outstanding  plus all shares of Common Stock issuable upon
exercise of all outstanding  options,  warrants and convertible  instruments and
(y) the Current Required Minimum,  shall be a reasonable  number). In connection
therewith, the Board of Directors shall (a) adopt proper resolutions authorizing
such  increase,  (b) recommend to and otherwise use its best efforts to promptly
and duly obtain  stockholder  approval to carry out such resolutions (and hold a
special  meeting of the  stockholders  no later than the earlier to occur of the
60th day after delivery of the proxy materials  relating to such meeting and the
90th day  after  request  by a holder  of  Securities  to issue  the  number  of
Underlying  Shares in accordance  with the terms hereof) and (c) within five (5)
Business Days of obtaining such stockholder  authorization,  file an appropriate
amendment to the Company's  certificate or articles of incorporation to evidence
such increase.

     3.6 RESERVATION AND LISTING OF UNDERLYING SHARES. (a) The Company shall (i)
in the time and manner  required  by NASDAQ and such other  exchange,  market or
quotation  facility on which the Common  Stock is traded,  prepare and file with
NASDAQ (and such  national  securities  exchange,  market,  trading or quotation
facility on which the Common Stock is then traded) an additional  shares listing
application  covering a number of shares of Common  Stock which is not less than
Initial  Minimum,  (ii) take all steps  necessary to cause such shares of Common
Stock to be  approved  for  listing  on the NASDAQ (as well as on any such other
national securities exchange or market or trading or quotation facility on which
the Common  Stock is then  listed)  as soon as  possible  thereafter,  and (iii)
provide to the  Purchasers  evidence  of such  listing,  and the  Company  shall

                                       11
<PAGE>
maintain the listing of its Common Stock  thereon.  If the number of  Underlying
Shares  issuable upon conversion in full of the then  outstanding  Notes exceeds
eighty-five  percent (85%) of the number of Underlying  Shares previously listed
on account thereof with NASDAQ (and such national securities  exchange,  market,
trading or quotation  facility on which the Common Stock is then  traded),  then
the Company shall take the  necessary  actions to  immediately  list a number of
Underlying Shares as equals no less than the then Current Required Minimum.

         (b) The Company shall  maintain a reserve of shares of Common Stock for
issuance upon conversion of the Notes in full in accordance with this Agreement,
in such amount as may be required to fulfill its  obligations  in full under the
Transaction Documents.

     3.7  CONVERSION  PROCEDURES.   The  Transfer  Agent  Instructions  and  the
Conversion  Notice  (as  defined in the  Notes)  set forth the  totality  of the
procedures  with respect to the  conversion of the Notes,  including the form of
legal opinion,  if necessary,  that shall be rendered to the Company's  transfer
agent and such other information and instructions as may be reasonably necessary
to enable the Purchasers to convert their Notes.

     3.8  CONVERSION  OBLIGATIONS  OF  THE  COMPANY.  The  Company  shall  honor
conversions of the Notes and shall deliver  Underlying Shares in accordance with
the respective terms, conditions and time periods set forth in the Notes.

     3.9 SUBSEQUENT FINANCING; LIMITATION ON REGISTRATIONS. (a) From the date of
this Agreement  through the 180th day following the Closing Date,  other than to
the Purchasers  pursuant to this  Agreement,  the Company will not offer,  sell,
grant any option to purchase or any right to reprice  securities,  or  otherwise
dispose of (or  announce  any offer,  sale,  grant or any option to  purchase or
other  disposition) any Common Stock or equity or equity  equivalent  securities
(including the issuance of any debt or other instrument that is at any time over
the life thereof  convertible  into or exchangeable  for Common Stock),  and the
Company  will cause its  Subsidiaries  not to offer,  sell or issue  during such
period any of such Subsidiary's  securities which provide the holder thereof the
right to receive any Common Stock (collectively, "COMMON STOCK EQUIVALENTS").

         (b) From the date of this Agreement through the 180th day following the
Effective  Date,  other than to the Purchaser  pursuant to this  Agreement,  the
Company  will not  offer,  sell,  grant any option to  purchase  or any right to
reprice securities,  or otherwise dispose of (or announce any offer, sale, grant
or any option to purchase or other disposition) any Common Stock or Common Stock
Equivalents  (collectively,  a "SUBSEQUENT  PLACEMENT"),  unless (A) the Company
delivers to the Purchaser a written notice (the "SUBSEQUENT  PLACEMENT  NOTICE")
of its intention to effect such Subsequent Placement, which Subsequent Placement
Notice shall describe in reasonable detail the proposed terms of such Subsequent
Placement,  the amount of proceeds intended to be raised thereunder,  the Person
with whom such  Subsequent  Placement  shall be effected,  and attached to which
shall be a term sheet or similar document  relating thereto and (B) no Purchaser
notifies the Company by 6:30 p.m.  (New York City time) on the tenth Trading Day
after its  receipt of the  Subsequent  Placement  Notice of its  willingness  to
provide (or to cause its sole  designee to provide),  subject to  completion  of
mutually  acceptable  documentation,  financing to the Company on the same terms
set forth in the  Subsequent  Placement  Notice.  If no  Purchaser  notifies the
Company  of its  intention  to enter  into such  negotiations  within  such time

                                       12
<PAGE>
period, then the Company may effect the Subsequent Placement  substantially upon
the terms and to the Persons (or  Affiliates  of such  Persons) set forth in the
Subsequent  Placement  Notice;  PROVIDED,  that the  Company  shall  provide the
Purchaser with a second  Subsequent  Placement  Notice,  and the Purchaser shall
again have the right of first refusal set forth above in this  paragraph (b), if
the Subsequent  Placement  subject to the initial  Subsequent  Placement  Notice
shall not have been  consummated  for any  reason on the terms set forth in such
Subsequent  Placement  Notice  within  60 days  after  the  date of the  initial
Subsequent  Placement  Notice with the Person (or an  Affiliate  of such Person)
identified in the Subsequent Placement Notice.

         (c)  Except  for (x)  Registrable  Securities,  (y)  securities  of the
Company permitted pursuant to Section 6(c) of the Registration  Rights Agreement
to be registered in the Registration  Statement,  and (z) Common Stock permitted
to be issued pursuant to Section 3.9(e),  the Company may not until the 90th day
after the Effective  Date (i) issue or sell any of its or any of its  respective
Affiliates'  equity or  equity-equivalent  securities  pursuant to  Regulation S
promulgated  under the Securities Act, or (ii) file a registration  statement to
register any of its securities.

         (d) With respect to Section 3.9(a),  (b) and (c),  restrictive  periods
shall be extended for the number of Trading Days during such period (A) in which
trading in the Common Stock is suspended by any securities exchange or market or
quotation  system  on which the  Common  Stock is then  listed,  or (B) that the
Registration  Statement is not effective  following  the Effective  Date, or (C)
that the prospectus  included in the  Registration  Statement may not be used by
the  holders  thereof for the resale of  Registrable  Securities  following  the
Effective Date.

         (e) The restrictions contained in Section 3.9(a), (b) and (c) shall not
apply to (i) the  granting  of options or warrants to  employees,  officers  and
directors of the Company, and the issuance of Common Stock upon exercise of such
options  or  warrants   granted  under  any  stock  option  plan  heretofore  or
hereinafter  duly adopted by the Company,  (ii) shares of Common Stock  issuable
upon  exercise  of any  currently  outstanding  warrants  and other  outstanding
convertible  securities  of the  Company,  in  each  case  as and to the  extent
disclosed in SCHEDULE 2.1(C) (but not as to any amendments or  modifications  of
the  terms  of such  securities  after  the  date of this  Agreement,  including
"back-dated" agreements),  (iii) shares of Common Stock issuable upon conversion
of the  Notes,  (iv)  issuances  of  securities  as  consideration  in a merger,
consolidation  or  acquisition  of assets,  or in connection  with any strategic
partnership  or joint  venture  (the  primary  purpose  of which is not to raise
equity capital), or as consideration for the acquisition of a business,  product
or license by the  Company,  and (v) the issuance of  securities  pursuant to an
underwritten  public offering (which shall not include equity lines of credit or
similar financing structures).

     3.10 CERTAIN SECURITIES LAWS DISCLOSURES; PUBLICITY. The Company shall: (i)
on the  Closing  Date,  issue  a  press  release  reasonably  acceptable  to the
Purchasers  disclosing the transactions  contemplated hereby, (ii) file with the
Commission a Report on Form 8-K disclosing the transactions  contemplated hereby
within ten Business Days after the Closing Date,  and (iii) timely file with the
Commission a Form D promulgated  under the Securities Act. The Company shall, no
less than two Business  Days prior to the filing of any  disclosure  required by
clauses (ii) and (iii) above, provide a copy thereof to the Purchasers for their
review.  The Company and the Purchasers shall consult with each other in issuing

                                       13
<PAGE>
any other press  releases or otherwise  making public  statements or filings and
other  communications  with the  Commission  or any  regulatory  agency or stock
market or trading facility with respect to the transactions  contemplated hereby
and neither party shall issue any such press release or otherwise  make any such
public  statement,  filings or other  communications  without the prior  written
consent  of the other,  which  consent  shall not be  unreasonably  withheld  or
delayed,  except that if such  disclosure  is  required  by law or stock  market
regulations,  in which such case the disclosing party shall promptly provide the
other  party  with  prior  notice  of such  public  statement,  filing  or other
communication.  Notwithstanding  the  foregoing,  the Company shall not publicly
disclose the names of the Purchasers,  or include the names of the Purchasers in
any filing with the Commission,  or any regulatory  agency,  trading facility or
stock market without the prior written consent of the Purchasers,  except to the
extent such  disclosure  (but not any disclosure as to the  controlling  Persons
thereof)  is  required  by law or stock  market  regulations,  in which case the
Company shall provide the Purchasers with prior notice of such disclosure.

     3.11 TRANSFER OF INTELLECTUAL  PROPERTY  RIGHTS.  Except in connection with
the sale of all or  substantially  all of the assets of the Company or licensing
arrangements in the ordinary course of the Company's business, the Company shall
not transfer,  sell or otherwise dispose of any Intellectual Property Rights, or
allow any of the Intellectual Property Rights to become subject to any Liens, or
fail to renew  such  Intellectual  Property  Rights (if  renewable  and it would
otherwise  lapse if not  renewed),  without  the prior  written  consent  of the
Purchasers.

     3.12 USE OF PROCEEDS.  The Company shall use the net proceeds from the sale
of the  Securities  hereunder  for  working  capital  purposes  and  not for the
satisfaction  of any portion of the Company's  debt (other than payment of trade
payables in the ordinary  course of the Company's  business and prior  practices
and payment of  principal  or interest  pursuant to a Secured  Convertible  Note
transaction   dated   June  8,  2000  ),  to  redeem  any   Company   equity  or
equity-equivalent securities or to settle any outstanding litigation.

     3.13  REIMBURSEMENT.  If any  Purchaser,  other than by reason of its gross
negligence  or  willful  misconduct  as  determined  by  a  court  of  competent
jurisdiction,  becomes  involved in any  capacity in any action,  proceeding  or
investigation  brought by or against any Person,  including  stockholders of the
Company,  solely as a result of acquiring the Securities  under this  Agreement,
the Company will reimburse  such  Purchaser for its  reasonable  legal and other
expenses  (including the cost of any  investigation,  preparation  and travel in
connection  therewith  incurred in  connection  therewith,  as such expenses are
incurred.  The  reimbursement  obligations  of the Company under this  paragraph
shall be in addition to any  liability  which the  Company may  otherwise  have,
shall  extend  upon the same  terms  and  conditions  to any  Affiliates  of the
Purchasers who are actually named in such action,  proceeding or  investigation,
and partners,  directors, agents, employees and controlling persons (if any), as
the case may be, of the Purchasers and any such Affiliate,  and shall be binding
upon and inure to the benefit of any  successors,  assigns,  heirs and  personal
representatives  of the Company,  the  Purchasers and any such Affiliate and any
such Person.  The Company also agrees that neither the  Purchasers  nor any such
Affiliates,  partners, directors, agents, employees or controlling persons shall
have any liability to the Company or any Person asserting claims on behalf of or
in right of the Company  solely as a result of acquiring  the  Securities  under
this Agreement.

                                       14
<PAGE>
     3.14  SHAREHOLDER  RIGHTS  PLAN.  No claim will be made or  enforced by the
Company or any other Person that any  Purchaser is an  "Acquiring  Person" under
any  shareholders  rights  plan or  similar  plan or  arrangement  in  effect or
hereafter  adopted  by the  Company,  or that any  Purchaser  could be deemed to
trigger the provisions of any such plan or  arrangement,  by virtue of receiving
Securities or shares of Common Stock under the Transaction Documents.

     3.15 DISCLOSURE OF MATERIAL NON-PUBLIC  INFORMATION.  The Company shall not
and shall cause each of its Affiliates and other Persons acting on behalf of the
Company not to divulge to any Purchaser any  information  that it believes to be
material  non-public  information unless such Purchaser has agreed in writing to
receive  such  information.  The  Company  agrees to comply  with newly  adopted
Regulation FD, promulgated under the Exchange Act.

     3.16 CONVERSION INTO U.S.  WIRELESS COMMON STOCK. In the event that (i) the
Company does not pay the outstanding  principal  balance on the Notes within one
hundred and fifty days after  issuance,  or (ii) an Event of Default (as defined
in the Convertible  Secured Note) occurs,  then each  Purchaser,  at its option,
shall be entitled to convert its Notes from time to time  thereafter at its sole
option into shares of common stock of U.S.  Wireless  Corporation at a price per
share equal to 80% of the  average of the  closing  bid prices of U.S.  Wireless
common stock for the five Trading Days  immediately  preceding  each  Conversion
Date (as  defined  in the  Convertible  Secured  Note).  Under this  Section,  a
Purchaser  shall effect a conversion of its Note in accordance with the terms of
Section 4(a) (i) of the Convertible Secured Note. In connection herewith, and as
provided in the Stock  Pledge  Agreement  of even date,  the Company  shall also
pledge to the  Purchasers,  a number of shares of common stock of U.S.  Wireless
Corporation  which is equal to 200% of the outstanding  principal balance of the
Notes and as necessary,  additional  shares of U.S.  Wireless  Corporation under
circumstances described in the Stock Pledge Agreement.

     3.17 CERTAIN TRADING  RESTRICTIONS.  Each Purchaser agrees that for the ten
Trading Days preceding a Conversion Date (as defined in the Convertible  Secured
Note) such  Purchaser  will not enter into any Short Sales (as defined  herein).
For purposes  hereof,  a "Short Sale" by a Purchaser shall mean a sale of Common
Stock by such  Purchaser  that is marked  as a short  sale and that is made at a
time when there is no  equivalent  offsetting  long position in the Common Stock
held  by such  Purchaser.  For  purposes  of  determining  whether  there  is an
equivalent  offsetting  long  position in the Common  Stock held by a Purchaser,
Underlying  Shares  issuable upon  conversions of the Note  (including  interest
thereon) shall be deemed to be held long by such Purchaser.

     3.18 STABILIZATION  TRANSACTION.  Each Purchaser agrees that, regarding the
securities of the Company, it will not engage in any stabilization  transaction,
as defined and  prohibited by the rules and  regulations  promulgated  under the
Exchange Act.

                                       15
<PAGE>
                                   ARTICLE IV
                                  MISCELLANEOUS

     4.1 FEES AND  EXPENSES.  At the Closing,  the Company  shall  reimburse the
Purchasers  for their legal fees and expenses  incurred in  connection  with the
preparation and  negotiation of the Transaction  Documents by paying to Robinson
Silverman  $25,000  for  the  preparation  and  negotiation  of the  Transaction
Documents.  The amount contemplated by the immediately  preceding sentence shall
be retained by the  Purchasers  and shall not be delivered to the Company at the
Closing.  Other  than  the  amount  contemplated  in the  immediately  preceding
sentence,  and  except  as  otherwise  set  forth  in  the  Registration  Rights
Agreement, each party shall pay the fees and expenses of its advisers,  counsel,
accountants and other experts,  if any, and all other expenses  incurred by such
party  incident  to  the  negotiation,   preparation,  execution,  delivery  and
performance of this  Agreement.  The Company shall pay all stamp and other taxes
and duties levied in connection with the issuance of the Securities.

     4.2 ENTIRE AGREEMENT;  AMENDMENTS. The Transaction Documents, together with
the Exhibits and  Schedules  thereto,  contain the entire  understanding  of the
parties  with  respect to the  subject  matter  hereof and  supersede  all prior
agreements and  understandings,  oral or written,  with respect to such matters,
which the parties acknowledge have been merged into such documents, exhibits and
schedules.

     4.3  NOTICES.  Any and all notices or other  communications  or  deliveries
required or permitted to be provided  hereunder shall be in writing and shall be
deemed given and effective on the earliest of (i) the date of  transmission,  if
such notice or  communication  is delivered  via  facsimile and the party giving
such notice has a confirmation of  transmission  setting forth the date and time
of  transmission,  which was produced by the facsimile  machine at the facsimile
telephone  number  specified in this Section  prior to 6:30 p.m.  (New York City
time) on a Business Day,  (ii) the Business Day after the date of  transmission,
if such notice or  communication is delivered via facsimile and the party giving
such notice has a confirmation of  transmission  setting forth the date and time
of  transmission,  which was produced by the facsimile  machine at the facsimile
telephone number specified in this Agreement later than 6:30 p.m. (New York City
time) on any date and earlier than 11:59 p.m. (New York City time) on such date,
(iii) the Business Day following the date of mailing, if sent by U.S. nationally
recognized  overnight courier service,  or (iv) upon actual receipt by the party
to whom such notice is required  to be given.  The address for such  notices and
communications shall be as follows:

         If to the Company:  Global Technologies, Ltd.
                             1811 Chestnut Street, Suite 120
                             Philadelphia, PA 19103
                             Facsimile No.: (215) 972-8183
                             Attn: Chief Financial Officer/General Counsel

         With copies to:     Schnader Harrison Segal & Lewis LLP
                             1600 Market Street
                             Philadelphia, PA 19103
                             Facsimile No.: (215) 751-2205
                             Attn: Richard P. Jaffe

         If to a Purchaser:  To the address set forth under such Purchaser's
                             name on the signature pages hereto.

or such other  address as may be designated  in writing  hereafter,  in the same
manner, by such Person.

                                       16
<PAGE>
     4.4  AMENDMENTS;  WAIVERS.  No provision of this Agreement may be waived or
amended except in a written instrument  signed, in the case of an amendment,  by
both the Company and each of the Purchasers or, in the case of a waiver,  by the
party against whom  enforcement  of any such waiver is sought.  No waiver of any
default  with  respect  to any  provision,  condition  or  requirement  of  this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other  provision,  condition or requirement  hereof,  nor shall any delay or
omission of either  party to exercise any right  hereunder in any manner  impair
the exercise of any such right accruing to it thereafter.

     4.5  HEADINGS.  The  headings  herein  are  for  convenience  only,  do not
constitute a part of this  Agreement  and shall not be deemed to limit or affect
any of the provisions hereof.

     4.6 SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon and inure
to the benefit of the parties and their  successors and permitted  assigns.  The
Company may not assign this  Agreement  or any rights or  obligations  hereunder
without  the prior  written  consent of the  Purchasers.  Except as set forth in
Section  3.1(a),  the  Purchasers  may not assign this  Agreement  or any of the
rights or  obligations  hereunder  without  the  consent  of the  Company.  This
provision  shall not limit  any  Purchaser's  right to  transfer  securities  or
transfer or assign rights under the Registration  Rights Agreement in accordance
with the terms thereof.

     4.7 NO  THIRD-PARTY  BENEFICIARIES.  This  Agreement  is  intended  for the
benefit of the parties  hereto and their  respective  successors  and  permitted
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other Person.

     4.8 GOVERNING  LAW. The  corporate law of Delaware  shall govern all issues
concerning the relative  rights of the Company and its  stockholders.  All other
questions concerning the construction,  validity, enforcement and interpretation
of this Agreement  shall be governed by and construed and enforced in accordance
with  the  internal  laws  of the  State  of New  York,  without  regard  to the
principles of conflicts of law thereof. Each party hereby irrevocably submits to
the  jurisdiction  of the state and  federal  courts  sitting in the City of New
York, borough of Manhattan,  for the adjudication of any dispute hereunder or in
connection  herewith or with any  transaction  contemplated  hereby or discussed
herein  (including with respect to the enforcement of the any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that it is not  personally  subject  to the
jurisdiction  of any such  court,  that  such  suit,  action  or  proceeding  is
improper.  Each party hereby  irrevocably waives personal service of process and
consents  to process  being  served in any such suit,  action or  proceeding  by
mailing a copy thereof via  registered or certified  mail or overnight  delivery
(with  evidence of  delivery) to such party at the address in effect for notices
to it under this  Agreement and agrees that such service shall  constitute  good
and sufficient  service of process and notice thereof.  Nothing contained herein
shall be  deemed to limit in any way any right to serve  process  in any  manner
permitted by law.

     4.9 SURVIVAL.  The  representations,  warranties,  agreements and covenants
contained  herein shall  survive the Closing and the delivery and  conversion of
the Notes.

                                       17
<PAGE>
     4.10 EXECUTION. This Agreement may be executed in two or more counterparts,
all of which when taken  together shall be considered one and the same agreement
and shall become effective when  counterparts have been signed by each party and
delivered to the other  party,  it being  understood  that both parties need not
sign the same  counterpart.  In the event that any  signature  is  delivered  by
facsimile  transmission,  such  signature  shall  create  a  valid  and  binding
obligation  of the  party  executing  (or on  whose  behalf  such  signature  is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

     4.11  SEVERABILITY.  In case  any one or  more  of the  provisions  of this
Agreement  shall be invalid or  unenforceable  in any respect,  the validity and
enforceability of the remaining terms and provisions of this Agreement shall not
in any way be  affecting  or impaired  thereby and the parties  will  attempt to
agree  upon a valid  and  enforceable  provision  which  shall  be a  reasonable
substitute  therefor,  and upon so agreeing,  shall  incorporate such substitute
provision in this Agreement.

     4.12  REMEDIES.  In  addition  to being  entitled  to  exercise  all rights
provided herein or granted by law,  including  recovery of damages,  each of the
Purchasers  will be entitled to specific  performance of the  obligations of the
Company under the Transaction Documents.  The parties hereto agree that monetary
damages may not be adequate  compensation for any loss incurred by reason of any
breach of its obligations  described in the foregoing sentence and hereby agrees
to waive in any action  for  specific  performance  of any such  obligation  the
defense that a remedy at law would be adequate.

     4.13  INDEPENDENT  NATURE  OF  PURCHASERS'   OBLIGATIONS  AND  RIGHTS.  The
obligations of each Purchaser under any Transaction  Document is several and not
joint with the  obligations  of any other  Purchaser  and no Purchaser  shall be
responsible  in any way for the  performance  of the  obligations  of any  other
Purchaser under any Transaction  Document.  Nothing  contained  herein or in any
Transaction  Document,  and no action taken by any Purchaser  pursuant  thereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a
joint  venture  or any other kind of entity,  or create a  presumption  that the
Purchasers are in any way acting in concert with respect to such  obligations or
the transactions  contemplated by the Transaction Document. Each Purchaser shall
be entitled to independently  protect and enforce its rights,  including without
limitation  the  rights  arising  out of  this  Agreement  or  out of the  other
Transaction Documents,  and it shall not be necessary for any other Purchaser to
be joined as an additional party in any proceeding for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                            SIGNATURE PAGES FOLLOWS]

                                       18
<PAGE>
     IN WITNESS  WHEREOF,  the parties hereto have caused this  Convertible Note
Purchase   Agreement  to  be  duly  executed  by  their  respective   authorized
signatories as of the date first indicated above.

                                    GLOBAL TECHNOLOGIES, LTD.

                                    By:
                                        ----------------------------------------
                                        Name: Patrick J. Fodale
                                        Title: Vice President

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       19
<PAGE>
                             ADVANTAGE FUND II LTD.

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

                                    Purchase Price for Notes:         $4,000,000

                                    Address for Notice:

                                    c/o CITCO
                                    Kaya Flamboyan 9
                                    Curacao, Netherlands, Antilles
                                    Facsimile No.:  011-599-9732-2008
                                    Attention:  W.R. Weber

                                    Jurisdiction of organization:
                                        British Virgin Islands

                                    With copies to:

                                    Genesee International Inc.
                                    10500 NE 8th Street
                                    Suite 1920
                                    Bellevue, WA 98004
                                    Facsimile No.: (425) 462-4645
                                    Attn: Howard Coleman

               With copies to:      Robinson Silverman Pearce Aronsohn &
                                      Berman LLP
                                    1290 Avenue of the Americas
                                    New York, NY  10104
                                    Facsimile No.: (212) 541-4630 and
                                                   (212) 541-1432
                                    Attn: Eric L. Cohen, Esq.

                                       20
<PAGE>
                                    KOCH INVESTMENT GROUP LTD.

                                    By:_____________________________________
                                             Name:
                                             Title:

                                    Purchase Price for Shares to be
                                    acquired at Closing               $3,000,000

                                    Address for Notice:

                                    4111 East 37th Street North
                                    Wichita, Kansas 67270
                                    Facsimile: (316) 828-7947
                                    Attention: Josh Taylor

                                       21NEITHER THIS NOTE NOR THE SECURITIES  INTO WHICH THIS NOTE IS  CONVERTIBLE  HAVE
BEEN  REGISTERED  WITH THE SECURITIES AND EXCHANGE  COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION  FROM  REGISTRATION  UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
MAY  NOT BE  OFFERED  OR  SOLD  EXCEPT  PURSUANT  TO AN  EFFECTIVE  REGISTRATION
STATEMENT  UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE  EXEMPTION FROM,
OR IN A  TRANSACTION  NOT  SUBJECT  TO,  THE  REGISTRATION  REQUIREMENTS  OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

No.__                                                                 $_________

                            GLOBAL TECHNOLOGIES, LTD.
                           8% CONVERTIBLE SECURED NOTE
            DUE ONE HUNDRED AND FIFTY DAYS FROM THE DATE OF ISSUANCE

     THIS Note is one of a series of duly  authorized and issued notes of Global
Technologies, Ltd., a Delaware corporation, having a principal place of business
at 1811 Chestnut  Street,  Suite 120,  Philadelphia,  PA 19103 (the  "Company"),
designated as its 8% Convertible  Secured Notes,  due one hundred and fifty days
from the date of issuance,  in the aggregate  principal  amount of Seven Million
Dollars ($7,000,000) (the "Notes"). This Note is being issued in connection with
that certain  Convertible  Secured Note Purchase  Agreement between the original
Holders  and the  Company  of even date  herewith  (the  "Purchase  Agreement").
Capitalized  terms used and not otherwise defined herein that are defined in the
Purchase  Agreement  shall have the meaning  given to such terms in the Purchase
Agreement.

     FOR VALUE RECEIVED,  the Company promises to pay to  _____________________,
or its registered  assigns (the  "Holder"),  the principal sum of  _____________
($___________),  on March 2, 2001 or such earlier date as the Notes are required
to be repaid as  provided  hereunder  (the  "Maturity  Date")  and to pay simple
interest  to the  Holder  on the  aggregate  unconverted  and  then  outstanding
principal  amount  of  this  Note  at the  rate of 8% per  annum,  payable  on a
quarterly basis on March 31, June 30,  September 30 and December 31 of each year
while such Notes are  outstanding  commencing  on December  31, 2000 and on each
Conversion Date (as defined  herein) (each an "Interest  Payment Date") for such
principal  amount,  commencing on the earlier to occur of a Conversion  Date for
such  principal  amount and December 31, 2000, in cash or shares of Common Stock
(as  defined in Section  6).  Subject to the terms and  conditions  herein,  the
decision  whether to pay  interest  hereunder  in shares of Common Stock or cash
shall be at the discretion of the Company, provided, that the Company shall pay
<PAGE>
interest  hereunder  in cash at any time during which (as defined in Section 6),
the Underlying Shares Registration Statement (as defined in Section 6) is either
not effective or the Prospectus  included in the Underlying Shares  Registration
Statement may not be used by the Holder for the resale of Underlying  Shares (as
defined in Section 6). Not less than ten Trading  Days (as defined in Section 6)
prior to each Interest  Payment Date,  the Company shall provide the Holder with
written  notice of its  election  to pay  interest  hereunder  either in cash or
shares of Common Stock pursuant to the terms of Section 4(a)(i) (the Company may
indicate  in such  notice  that the  election  contained  in such  notice  shall
continue  for later  periods  until  revised).  Failure to timely  provide  such
written notice shall be deemed an election by the Company to pay the interest on
such  Interest  Payment Date in shares of Common Stock  pursuant to the terms of
Section  4(a)(i).  If  interest  is paid by the  Company in shares of its Common
Stock,  then the number of shares of Common  Stock  issuable  on account of such
interest  shall equal the cash amount of such interest on such Interest  Payment
Date  divided by the  Conversion  Price (as defined  below).  Interest  shall be
calculated  on the basis of a 365-day year and shall accrue daily  commencing on
the Original  Issue Date (as defined in Section 6) until  payment in full of the
principal sum,  together with all accrued and unpaid  interest and other amounts
which may become due hereunder,  has been made.  Interest hereunder will be paid
to the Person (as defined in Section 6) in whose name this Note is registered on
the records of the Company  regarding  registration  and transfers of Notes (the
"Note  Register").  All overdue  accrued and unpaid  interest to be paid in cash
hereunder  shall  entail a late fee at the rate of 18% per annum (or such  lower
maximum amount of interest  permitted to be charged under applicable law) ("Late
Fee") (to accrue daily, from the date such interest is due hereunder through and
including  the date of payment),  payable in cash or if such Late Fee is paid by
the Company in shares of its Common Stock, in which case the number of shares of
Common Stock issuable on account of such Late Fee shall equal the cash amount of
such Late Fee on such Late Fee payment date divided by the Conversion Price.

     This Note is subject to the following additional provisions:

     Section  1.  This Note is  exchangeable  for an equal  aggregate  principal
amount of Notes of  different  authorized  denominations,  as  requested  by the
Holder  surrendering  the  same.  No  service  charge  will  be  made  for  such
registration of transfer or exchange.

     Section  2.  This  Note has  been  issued  subject  to  certain  investment
representations  of the original Holder set forth in the Purchase  Agreement (as
defined in Section 6) and may be  transferred  or exchanged  only in  compliance
with  the  Purchase  Agreement.  Prior to due  presentment  to the  Company  for
transfer  of this Note,  the  Company and any agent of the Company may treat the
Person (as defined in Section 6) in whose name this Note is duly  registered  on
the Note  Register as the owner hereof for the purpose of  receiving  payment as
herein provided and for all other purposes, whether or not this Note is overdue,
and  neither  the  Company nor any such agent shall be affected by notice to the
contrary.

                                      -2-
<PAGE>
     SECTION 3. EVENTS OF DEFAULT.

     (a)  "Event  of  Default",  wherever  used  herein,  means  any  one of the
following  events  (whatever  the reason and  whether it shall be  voluntary  or
involuntary or effected by operation of law or pursuant to any judgment,  decree
or order of any court, or any order, rule or regulation of any administrative or
governmental body):

          (i) any default in the  payment of the  principal  of,  interest on or
     liquidated  damages  in  respect  of,  any  Notes,  free  of any  claim  of
     subordination,  as and when the same shall become due and payable  (whether
     on a Conversion Date or the Maturity Date or by acceleration or otherwise);

          (ii) the Company shall fail to observe or perform any other  covenant,
     agreement or warranty contained in, or otherwise commit any material breach
     of any of the  Transaction  Documents  (as  defined in Section 6), and such
     failure or breach shall not have been  remedied  within five  Business Days
     after the date on which written notice of such failure or breach shall have
     been given;

          (iii) the Company or any of its subsidiary  shall  commence,  or there
     shall be commenced  against the Company or any such subsidiary a case under
     any applicable  bankruptcy or insolvency laws as now or hereafter in effect
     or any successor thereto, or the Company or any of its subsidiary commences
     any other proceeding under any reorganization,  arrangement,  adjustment of
     debt, relief of debtors, dissolution,  insolvency or liquidation or similar
     law of any jurisdiction  whether now or hereafter in effect relating to the
     Company or any subsidiary thereof or there is commenced against the Company
     or  any  subsidiary  thereof  any  such  bankruptcy,  insolvency  or  other
     proceeding  which  remains  undismissed  for a period  of 60  days;  or the
     Company or any subsidiary thereof is adjudicated  insolvent or bankrupt; or
     any order of relief or other order approving any such case or proceeding is
     entered;  or the Company or any subsidiary  thereof suffers any appointment
     of any custodian or the like for it or any substantial part of its property
     which  continues  undischarged  or unstayed for a period of 60 days; or the
     Company  or any  subsidiary  thereof  makes a  general  assignment  for the
     benefit of creditors; or the Company shall fail to pay, or shall state that
     it is unable to pay, or shall be unable to pay, its debts generally as they
     become due; or the Company or any  subsidiary  thereof shall call a meeting
     of its  creditors  with a view to arranging a  composition,  adjustment  or
     restructuring of its debts; or the Company or any subsidiary  thereof shall
     by any act or failure to act expressly indicate its consent to, approval of
     or acquiescence  in any of the foregoing;  or any corporate or other action
     is taken by the  Company  or any  subsidiary  thereof  for the  purpose  of
     effecting any of the foregoing;

          (iv) the Company  shall  default in any of its  obligations  under any
     other Note or any mortgage,  credit agreement or other facility,  indenture
     agreement, factoring agreement or other instrument under which there may be
     issued,  or by which there may be secured or evidenced any indebtedness for
     borrowed  money or money  due  under any long  term  leasing  or  factoring
     arrangement  of the Company in an amount  exceeding  five hundred  thousand

                                      -3-
<PAGE>
     dollars ($500,000), whether such indebtedness now exists or shall hereafter
     be created and such default shall result in such  indebtedness  becoming or
     being  declared  due and  payable  prior  to the  date on  which  it  would
     otherwise become due and payable;

          (v) the Common Stock shall either be delisted from the Nasdaq National
     Market  ("NASDAQ") or suspended from trading on the NASDAQ without resuming
     trading  and/or  being  relisted or thereon or listed on the New York Stock
     Exchange,  American  Stock  Exchange or Nasdaq  SmallCap  Market  (each,  a
     "Subsequent  Market") or having such suspension lifted, in either case, for
     more than three consecutive Trading Days;

          (vi) the Company shall be a party to any Change of Control Transaction
     (as defined in Section 6),  shall agree to sell or dispose all or in excess
     of 50% of its assets in one or more transactions  (whether or not such sale
     would  constitute  a Change of  Control  Transaction),  or shall  redeem or
     repurchase more than a de minimis number of shares of Common Stock or other
     equity  securities  of the Company  (other than  redemptions  of Underlying
     Shares);

          (vii) an Underlying Shares Registration  Statement shall not have been
     declared effective by the Commission on or prior to the 180th day after the
     Original Issue Date;

          (viii)  if,  during  the  Effectiveness  Period  (as  defined  in  the
     Registration Rights Agreement),  the effectiveness of the Underlying Shares
     Registration  Statement  lapses for any  reason or the Holder  shall not be
     permitted to resell Registrable  Securities (as defined in the Registration
     Rights Agreement) under the Underlying Shares  Registration  Statement,  in
     either case, for more than an aggregate of ten consecutive Trading Days;

          (ix) an Event (as defined in the Registration  Rights Agreement) shall
     not  have  been  cured  to the  satisfaction  of the  Holder  prior  to the
     expiration  of 60 days from the Event Date (as defined in the  Registration
     Rights  Agreement)  relating  thereto (other than an Event resulting from a
     failure of an  Underlying  Shares  Registration  Statement  to be  declared
     effective by the Commission on or prior to the 180th day after the Original
     Issue Date, which shall be covered by Section 3(a)(vii));

          (x) the Company shall fail for any reason to deliver certificates to a
     Holder prior to the tenth  Trading Day after a Conversion  Date pursuant to
     and in accordance  with Section 4(b) or the Company shall provide notice to
     the Holder,  including by way of public  announcement,  at any time, of its
     intention  not to comply  with  requests  for  conversions  of any Notes in
     accordance with the terms hereof;

          (xi) the  Company  shall fail for any reason to deliver the payment in
     cash  pursuant to a Buy-In (as defined  herein)  within  seven (7) Business
     Days after written notice thereof is delivered to the Company hereunder.

                                      -4-
<PAGE>
     (b) If any Event of Default  occurs and is  continuing,  the full principal
amount of this Note (and, at the Holder's  option,  all other Notes then held by
such Holder), together with interest and other amounts owing in respect thereof,
to the date of acceleration shall become at the Holder's  election,  immediately
due and  payable in cash,  provided  however,  that if the  Company  informs the
Holder  that it will be unable to pay the  amounts  due in cash,  the Holder may
request  payment of such amount in stock.  The number of shares of Common  Stock
issuable in payment thereof shall be determined by dividing the aggregate amount
due to the Holder by  Conversion  Price.  The aggregate  amount  payable upon an
Event of  Default  shall be  equal  to the sum of (i) the  Mandatory  Prepayment
Amount (as  defined  in  Section  6) plus (ii) the  product of (A) the number of
Underlying Shares issued in respect of conversions  hereunder within thirty (30)
days of the date of a  declaration  of an Event of Default  and then held by the
Holder  and  (B) the  Closing  Price  (as  defined  in  Section  6) on the  date
prepayment is due or the date the full  prepayment  price is paid,  whichever is
greater.  Interest  shall accrue on the  prepayment  amount  hereunder  from the
seventh  day after such  amount is due  (being the date of an Event of  Default)
through the date of  prepayment in full thereof at the rate of 18% per annum (or
such lesser maximum  amount that is permitted to be paid by applicable  law), to
accrue daily from the date such payment is due  hereunder  through and including
the date of  payment.  All  Notes  and  Underlying  Shares  for  which  the full
prepayment  price  hereunder  shall have been paid in accordance  herewith shall
promptly be  surrendered  to or as directed by the Company.  The Holder need not
provide and the Company hereby waives any presentment,  demand, protest or other
notice of any kind, and the Holder may immediately and without expiration of any
grace period  enforce any and all of its rights and remedies  hereunder  and all
other remedies  available to it under  applicable  law. Such  declaration may be
rescinded and annulled by Holder at any time prior to payment hereunder. No such
rescission or annulment  shall affect any subsequent  Event of Default or impair
any right consequent thereon.

     SECTION 4. CONVERSION.

     (a) (i) Conversion at Option of Holder.  (A) This Note shall be convertible
into (x) shares of the Company's  Common Stock, at the option of the Holder,  in
whole or in part at any time and from  time to time,  after  the 120th day after
the  Original  Issue  Date  but  prior  to the  Maturity  Date  (subject  to the
limitations  on conversion set forth in Section  4(a)(iv)  hereof) or (y) either
shares of the Company's Common Stock or shares of common stock of U.S.  Wireless
Corporation,  at the option of the Holder (the  Holder may elect to receive,  on
any  Conversion  Notice,  such number of shares of the  Company's  Common  Stock
and/or shares of common stock of U.S. Wireless Corporation in such proportion as
the Holder indicates on the Conversion  Notice), in whole or in part at any time
and from time to time,  after the Maturity Date (subject to the  limitations  on
conversion set forth in Section  4(a)(iv) hereof) and until this Note shall have
been  repaid in full.  The  Holder  shall  effect  conversions  at its option by
delivering to the Company of the form of conversion  notice  attached  hereto as
Exhibit A (a "Conversion  Notice"),  specifying therein (x) the principal amount
of Notes to be converted and the date on which such conversion is to be effected
and (y) that the Note shall be  convertible  into either shares of the Company's
Common Stock and/or shares of common stock of U.S. Wireless  Corporation,  which
date may not be prior to the date such Conversion  Notice is deemed to have been
delivered  hereunder (a  "Conversion  Date") and shall contain a schedule in the
form of Schedule 1 to the Conversion Notice (as amended on each Conversion Date,

                                      -5-
<PAGE>
the "Conversion  Schedule")  reflecting the remaining  principal  amount of this
Note and all accrued and unpaid interest thereon subsequent to the conversion at
issue. If no Conversion Date is specified in a Conversion Notice, the Conversion
Date  shall  be the  date  that  such  Conversion  Notice  is  deemed  delivered
hereunder. Subject to Section 4(b), each Conversion Notice, once given, shall be
irrevocable.  To effect conversions hereunder,  the Holder shall not be required
to physically  surrender this Note to the Company unless the aggregate principal
amount of this Note is so converted  in which event such Holder  shall  promptly
thereafter  deliver  such Note to or as  directed  by the  Company.  Conversions
hereunder shall have the effect of lowering the outstanding  principal amount of
this Note plus all accrued and unpaid interest thereon in an amount equal to the
applicable  conversion,  which  shall be  evidenced  by entries set forth in the
Conversion  Schedule.  The Holder and the Company shall maintain records showing
the principal amount converted and the date of such conversions. In the event of
any dispute or  discrepancy,  the records of the Holder shall be controlling and
determinative in the absence of mathematical error. The Holder and any assignee,
by  acceptance  of this  Note,  acknowledge  and  agree  that,  by reason of the
provisions of this  paragraph,  following  conversion of a portion of this Note,
the unpaid and  unconverted  principal  amount of this Note may be less than the
amount stated on the face hereof.

     (ii) Number of Underlying  Shares Issuable Upon Conversion.  (A) The number
of  shares  of  Common  Stock  issuable  upon a  conversion  hereunder  shall be
determined  by adding the sum of (i) the  product of the  outstanding  principal
amount of this Note to be converted  divided by the Conversion  Price,  and (ii)
the amount equal to (I) the product of (x) the outstanding  principal  amount of
this Note to be converted  and (y) the product of (1) the  quotient  obtained by
dividing .08 by 365 and (2) the number of days for which such  principal  amount
was outstanding,  divided by (II) the Conversion  Price,  provided,  that if the
Company shall have timely  elected to pay the interest due on a Conversion  Date
in cash pursuant to the terms hereof,  subsection  (ii) shall not be used in the
calculation  of the number of shares of Common Stock  issuable upon a conversion
hereunder.

     (B)  Notwithstanding  anything to the contrary  contained herein, if on any
Conversion Date:

          (1) the  number  of shares  of  Common  Stock at the time  authorized,
     unissued and unreserved  for all purposes,  or held as treasury  stock,  is
     insufficient to pay interest hereunder in shares of Common Stock;

          (2) after the  Interest  Effectiveness  Date (as defined in Section 6)
     such shares of Common Stock (x) are not registered  for resale  pursuant to
     an effective  Underlying Shares  Registration  Statement and (y) may not be
     sold without volume restrictions  pursuant to Rule 144(k) promulgated under
     the Securities Act (as defined in Section 6);

          (3) the  Common  Stock is not  listed or quoted on the  NASDAQ or on a
     Subsequent Market;

                                      -6-
<PAGE>
          (4)  the  Company  has  failed  to  timely   satisfy  its   conversion
     obligations hereunder; or

          (5) the  issuance  of such shares of Common  Stock  would  result in a
     violation of Section 4(a)(ii),

          then, at the option of the Holder, the Company,  in lieu of delivering
shares of Common Stock pursuant to Section 4(a)(i)(A)(ii), shall deliver, within
three Trading Days of each applicable  Conversion  Date, an amount in cash equal
to the sum of (a) the outstanding  principal amount of the Notes to be converted
on such  Conversion  Date and (b) the  product of (x) the  quotient  obtained by
dividing .08 by 365 and (y) the number of days for which such  principal  amount
was outstanding.

     (iv) Certain Conversion Restrictions.

          (A) A Holder may not convert  Notes or receive  shares of Common Stock
as payment of interest  hereunder  to the extent such  conversion  or receipt of
such interest  payment  would result in the Holder,  together with any affiliate
thereof,  beneficially owning (as determined in accordance with Section 13(d) of
the Exchange Act and the rules  promulgated  thereunder)  in excess of 4.999% of
the then  issued  and  outstanding  shares of  Common  Stock,  including  shares
issuable upon  conversion of, and payment of interest on, the Notes held by such
Holder after application of this Section. Since the Holder will not be obligated
to report to the Company the number of shares of Common Stock it may hold at the
time of a conversion  hereunder,  unless the conversion at issue would result in
the  issuance  of  shares  of  Common  Stock in  excess  of  4.999%  of the then
outstanding  shares of Common Stock without regard to any other shares which may
be beneficially  owned by the Holder or an affiliate  thereof,  the Holder shall
have the authority and obligation to determine whether the restriction contained
in this Section will limit any particular conversion hereunder and to the extent
that  the  Holder  determines  that the  limitation  contained  in this  Section
applies, the determination of which portion of the principal amount of Notes are
convertible  shall be the  responsibility  and obligation of the Holder.  If the
Holder has delivered a Conversion  Notice for a principal  amount of Notes that,
without  regard to any  other  shares  that the  Holder  or its  affiliates  may
beneficially own, would result in the issuance in excess of the permitted amount
hereunder,  the Company shall notify the Holder of this fact and shall honor the
conversion for the maximum  principal  amount  permitted to be converted on such
Conversion Date in accordance with the periods described in Section 4(b) and, at
the option of the  Holder,  either  retain any  principal  amount  tendered  for
conversion in excess of the permitted amount hereunder for future conversions or
return  such  excess  principal  amount to the Holder.  The  provisions  of this
Section  may be waived by a Holder  (but only as to itself  and not to any other
Holder) upon not less than 61 days prior notice to the  Company.  Other  Holders
shall be unaffected by any such waiver.

                                      -7-
<PAGE>
          (B) A Holder may not convert  Notes or receive  shares of Common Stock
as payment of interest  hereunder  to the extent such  conversion  or receipt of
such interest  payment  would result in the Holder,  together with any affiliate
thereof,  beneficially owning (as determined in accordance with Section 13(d) of
the Exchange Act and the rules  promulgated  thereunder)  in excess of 9.999% of
the then  issued  and  outstanding  shares of  Common  Stock,  including  shares
issuable upon  conversion of, and payment of interest on, the Notes held by such
Holder after application of this Section. Since the Holder will not be obligated
to report to the Company the number of shares of Common Stock it may hold at the
time of a conversion  hereunder,  unless the conversion at issue would result in
the  issuance  of  shares  of  Common  Stock in  excess  of  9.999%  of the then
outstanding  shares of Common Stock without regard to any other shares which may
be beneficially  owned by the Holder or an affiliate  thereof,  the Holder shall
have the authority and obligation to determine whether the restriction contained
in this Section will limit any particular conversion hereunder and to the extent
that  the  Holder  determines  that the  limitation  contained  in this  Section
applies, the determination of which portion of the principal amount of Notes are
convertible  shall be the  responsibility  and obligation of the Holder.  If the
Holder has delivered a Conversion  Notice for a principal  amount of Notes that,
without  regard to any  other  shares  that the  Holder  or its  affiliates  may
beneficially own, would result in the issuance in excess of the permitted amount
hereunder,  the Company shall notify the Holder of this fact and shall honor the
conversion for the maximum  principal  amount  permitted to be converted on such
Conversion Date in accordance with the periods described in Section 4(b) and, at
the option of the  Holder,  either  retain any  principal  amount  tendered  for
conversion in excess of the permitted amount hereunder for future conversions or
return  such  excess  principal  amount to the Holder.  The  provisions  of this
Section  may be waived by a Holder  (but only as to itself  and not to any other
Holder) upon not less than 61 days prior notice to the  Company.  Other  Holders
shall be unaffected by any such waiver.

          (C) If the Common  Stock is then  listed for  trading on the NASDAQ or
the Nasdaq  SmallCap  Market and the Company has not  obtained  the  Shareholder
Approval  (as  defined  below),  then the  Company may not issue in excess of an
aggregate of  2,144,025  shares of Common  Stock  (which  equals  19.999% of the
number of shares of Common  Stock  outstanding  on the Trading  Day  immediately
preceding the Original  Closing Date) upon any and all  conversions of the Notes
at a price per share  that is less than the  Closing  Price on the  Trading  Day
immediately  preceding  the  Original  Issue  Date (such  number of shares,  the
"Issuable Maximum").  Each Holder shall be entitled to a portion of the Issuable
Maximum equal to the quotient  obtained by dividing (x) the aggregate  principal
amount of the Notes issued and sold to such Holder on the Original Issue Date by
(y) the number of the Note issued and sold by the Company on the Original  Issue
Date. If any Holder shall no longer hold the Note, then such Holder's  remaining
portion of the Issuable Maximum shall be allocated  pro-rata among the remaining
Holders. If on any Conversion Date (A) the shares of Common Stock are listed for
trading on the NASDAQ or Nasdaq SmallCap  Market,  (B) the Conversion Price then
in effect is such that the aggregate number of shares of Common Stock that would
then be issuable upon conversion in full of all then outstanding Notes, together
with any shares of Common Stock  previously  issued upon  conversion of the Note
would exceed the Issuable Maximum, and (C) the Company shall not have previously
obtained the vote of shareholders (the "Shareholder  Approval"),  if any, as may
be  required  by the  applicable  rules and  regulations  of the  NASDAQ (or any
successor  entity)  applicable to approve the issuance of shares of Common Stock

                                      -8-
<PAGE>
in excess of the Issuable Maximum pursuant to the terms hereof, then the Company
shall issue to the Holder  requesting  a conversion a number of shares of Common
Stock  equal to such  Holder's  pro-rata  portion  (which  shall  be  calculated
pursuant to the terms hereof) of the Issuable  Maximum (less any prior issuances
of Common Stock to such Holder upon  conversions of Notes or payment of interest
thereon in shares of Common  Stock at a  conversion  price less than the Closing
Price on the Trading Day  immediately  preceding  the Original  Issue Date) and,
with respect to the  remainder of the  aggregate  principal  amount of the Notes
then  held by such  Holder  for  which  a  conversion  in  accordance  with  the
Conversion Price would result in an issuance of shares of Common Stock in excess
of such Holder's  pro-rata  portion  (which shall be calculated  pursuant to the
terms hereof) of the Issuable Maximum (the "Excess  Principal"),  the converting
Holder shall have the option to require the Company to either:  (1) use its best
efforts to obtain the Shareholder  Approval  applicable to such issuance as soon
as is possible, but in any event not later than the 75th day after such request,
or (2) pay cash to the  converting  Holder  in an  amount  equal  to the  Excess
Principal as liquidated  damages and not as penalty.  If the  converting  Holder
shall have  elected  the first  option  pursuant  to the  immediately  preceding
sentence and the Company shall have failed to obtain the Shareholder Approval on
or prior to the 75th day after such  request,  then within  three  Trading  Days
following the request therefor by the converting  Holder,  the Company shall pay
cash to the such in an amount equal to the Excess Principal in full satisfaction
of its remaining conversion obligations.  If the Company fails to pay the Excess
Principal  in full  pursuant to this  Section  within  seven days after the date
payable,  the Company  will pay  interest  thereon at a rate of 18% per annum or
such lesser  maximum  amount that is permitted to be paid by applicable  law, to
the  converting  Holder,  accruing  daily  from the  Conversion  Date until such
amount,  plus all such interest  thereon,  is paid in full.  The Company and the
Holder  understand and agree that shares of Common Stock issued to and then held
by the  Holder  as a result  of  conversions  of  Preferred  Stock  shall not be
entitled to cast votes on any resolution to obtain Shareholder Approval pursuant
hereto.

          (b) (i) Not later than ten days after any Conversion Date, the Company
will deliver to the Holder (i) a certificate or certificates which shall be free
of restrictive  legends and trading  restrictions  (other than those required by
the Purchase Agreement)  representing the number of shares of Common Stock being
acquired  upon the  conversion  of Notes  (ii) and a bank check in the amount of
accrued and unpaid interest (if the Company has timely elected or is required to
pay accrued interest in cash). The Company shall, upon request of the Holder, if
available,  use its best  efforts to deliver  any  certificate  or  certificates
required  to be  delivered  by the  Company  under this  Section  electronically
through  the  Depository  Trust  Corporation  or  another  established  clearing
corporation  performing  similar  functions.  If in the  case of any  Conversion
Notice such  certificate or certificates  are not delivered to or as directed by
the applicable Holder by the tenth day after a Conversion Date, the Holder shall
be  entitled  by  written  notice to the  Company  at any time on or before  its
receipt  of  such  certificate  or  certificates  thereafter,  to  rescind  such
conversion, in which event the Company shall immediately return the certificates
representing the principal amount of Notes tendered for conversion.

          (ii) If the Company fails to deliver to the Holder such certificate or
certificates  pursuant  to Section  4(b)(i) by the third  Trading  Day after the
Conversion  Date,  the Company shall pay to such Holder,  in cash, as liquidated
damages  and not as a  penalty,  $5,000  for each  Trading  Day after such third

                                      -9-
<PAGE>
Trading Day until such certificates are delivered.  Nothing herein shall limit a
Holder's  right to declare an Event of Default  pursuant to Section 3 herein for
the  Company's  failure to deliver  certificates  representing  shares of Common
Stock upon conversion  within the period  specified herein and such Holder shall
have the  right to  pursue  all  remedies  available  to it at law or in  equity
including,   without  limitation,   a  decree  of  specific  performance  and/or
injunctive relief.

          (iii) In addition to any other rights available to the Holder,  if the
Company fails to deliver to the Holder such certificate or certificates pursuant
to Section 4(b)(i) by the tenth day after the Conversion  Date, and if after ten
days the Holder  purchases (in an open market  transaction or otherwise)  Common
Stock to  deliver in  satisfaction  of a sale by such  Holder of the  Underlying
Shares which the Holder anticipated receiving upon such conversion (a "Buy-In"),
then  the  Company  shall  (A) pay in cash to the  Holder  (in  addition  to any
remedies  available  to or  elected by the  Holder)  the amount by which (x) the
Holder's total purchase price (including brokerage commissions,  if any) for the
Common Stock so purchased exceeds (y) the product of (1) the aggregate number of
shares  of  Common  Stock  that  such  Holder  anticipated  receiving  from  the
conversion  at issue  multiplied  by (2) the market price of the Common Stock at
the time of the sale  giving  rise to such  purchase  obligation  and (B) at the
option of the Holder,  either  reissue  Notes in  principal  amount equal to the
principal amount of the attempted conversion or deliver to the Holder the number
of shares of Common  Stock that would have been  issued had the  Company  timely
complied with its delivery  requirements under Section 4(b)(i).  For example, if
the Holder  purchases  Common Stock having a total  purchase price of $11,000 to
cover a Buy-In with respect to an attempted  conversion of Notes with respect to
which the market price of the Underlying  Shares on the date of conversion was a
total of $10,000 under clause (A) of the  immediately  preceding  sentence,  the
Company shall be required to pay the Holder $1,000. The Holder shall provide the
Company  written notice  indicating the amounts payable to the Holder in respect
of the Buy-In and provide  reasonable  evidence  thereof  (which  shall  consist
solely of the records  evidencing  the  establishment  of the position at issue)
which shall be reasonably satisfactory to the Company.  Notwithstanding anything
contained  herein to the  contrary,  if a Holder  requires  the  Company to make
payment in respect of a Buy-In for the  failure to timely  deliver  certificates
hereunder and the Company  timely pays in full such  payment,  the Company shall
not be required to pay such Holder liquidated  damages under Section 4(b)(ii) in
respect of the certificates resulting in such Buy-In.

          (c) (i) The conversion price (the "Conversion Price") in effect on any
Conversion  Date shall equal 80% of the average of the Per Share  Market  Values
for the five Trading Days immediately  preceding the Conversion Date (subject to
adjustment  as  provided  herein)  provided,  that such five  Trading Day period
shall,  at the option of the Holder,  be extended for the number of Trading Days
during such period in which (A) trading in the Common Stock is suspended  by, or
not traded on, the NASDAQ or a  Subsequent  Market on which the Common  Stock is
then listed,  or (B) after the date declared  effective by the  Commission,  the
Underlying  Shares  Registration  Statement  is  either  not  effective  or  the
Prospectus included in the Underlying Shares  Registration  Statement may not be
used by the Holder for the resale of Underlying Shares.

                                      -10-
<PAGE>
     Pursuant to Section  3.16 of the  Purchase  Agreement  and Section  4(a)(i)
herein,  in the event  that a Holder  seeks to convert  its Note into  shares of
common stock of U.S. Wireless  Corporation,  the conversion price to be utilized
for such  contemplated  conversion shall equal 80% of the average of the closing
bid prices of U.S.  Wireless common stock for the five Trading Days  immediately
preceding each Conversion Date.

          (ii) If the Company, at any time while any Notes are outstanding,  (a)
shall pay a stock  dividend or otherwise make a  distribution  or  distributions
payable in and in respect  of shares of its Common  Stock,  or in respect of any
other  equity or equity  equivalent  securities  and payable in shares of Common
Stock, (b) subdivide  outstanding shares of Common Stock into a larger number of
shares, (c) combine (including by way of reverse stock split) outstanding shares
of  Common   Stock  into  a  smaller   number  of   shares,   or  (d)  issue  by
reclassification  of shares of the Common  Stock any shares of capital  stock of
the Company,  then the  Conversion  Price shall be  multiplied  by a fraction of
which the  numerator  shall be the number of shares of Common  Stock  (excluding
treasury  shares,  if any)  outstanding  before  such  event  and of  which  the
denominator shall be the number of shares of Common Stock outstanding after such
event.  Any  adjustment  made  pursuant to this Section  shall become  effective
immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective  immediately
after  the  effective  date  in  the  case  of  a  subdivision,  combination  or
re-classification.

          (iii) If the  Company,  at any time  while any Notes are  outstanding,
shall issue rights,  options or warrants to all holders of Common Stock (and not
to Holders)  entitling them to subscribe for or purchase  shares of Common Stock
at a price per share less than the Per Share  Market  Value at the  record  date
mentioned below, then the Conversion Price shall be multiplied by a fraction, of
which  the  denominator  shall be the  number  of  shares  of the  Common  Stock
(excluding  treasury shares, if any) outstanding on the date of issuance of such
rights or warrants plus the number of additional  shares of Common Stock offered
for subscription or purchase,  and of which the numerator shall be the number of
shares of the Common Stock (excluding  treasury  shares,  if any) outstanding on
the date of issuance of such rights or warrants  plus the number of shares which
the  aggregate  offering  price of the total  number of shares so offered  would
purchase at such Per Share Market Value.  Such adjustment shall be made whenever
such rights or warrants are issued, and shall become effective immediately after
the record date for the  determination of stockholders  entitled to receive such
rights,  options or warrants.  However,  upon the  expiration of any such right,
option or warrant to purchase  shares of the Common  Stock the issuance of which
resulted in an adjustment in the Conversion  Price pursuant to this Section,  if
any such  right,  option  or  warrant  shall  expire  and  shall  not have  been
exercised,  the  Conversion  Price shall  immediately  upon such  expiration  be
recomputed and effective  immediately  upon such  expiration be increased to the
price  which it would have been (but  reflecting  any other  adjustments  in the
Conversion  Price made  pursuant to the  provisions  of this  Section  after the
issuance of such rights or warrants) had the adjustment of the Conversion  Price
made upon the  issuance of such  rights,  options or  warrants  been made on the
basis of offering for subscription or purchase only that number of shares of the
Common Stock  actually  purchased  upon the exercise of such rights,  options or
warrants actually exercised.

                                      -11-
<PAGE>
          (iv) If the Company or any  subsidiary  thereof at any time while this
Note is  outstanding,  shall issue shares of Common  Stock or rights,  warrants,
options or other  securities or debt that are  convertible  into or exchangeable
for shares of Common Stock  ("Common  Stock  Equivalents"),  at or entitling any
Person to  acquire  shares of  Common  Stock at a price per share  less than the
Conversion  Price (if the holder of the Common Stock or Common Stock  Equivalent
so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise,
or due to warrants,  options or rights issued in connection  with such issuance,
be  entitled  to  receive  shares  of  Common  Stock  at a price  less  than the
Conversion  Price,  such issuance shall be deemed to have occurred for less than
the Conversion  Price),  then, at the sole option of the Holder,  the Conversion
Price shall be adjusted to mirror the conversion, exchange or purchase price for
such Common Stock or Common Stock  Equivalents  (including any reset  provisions
thereof) for such exercises as shall be indicated by the Holder,  provided, that
for  purposes  hereof,  all  shares  of  Common  Stock  that are  issuable  upon
conversion,  exercise or exchange of Common  Stock  Equivalents  shall be deemed
outstanding  immediately  after the issuance of such Common  Stock  Equivalents.
Such  adjustment  shall be made  whenever  such shares of Common Stock or Common
Stock  Equivalents are issued. No adjustment under this Section shall be made as
a result of (i)  issuances of Common Stock or Common  Stock  Equivalents  to the
extent  disclosed in Schedule 2.1(c) to the Purchase  Agreement,  (ii) issuances
and  exercises  of  options  to  purchase  shares of  Common  Stock  issued  for
compensatory  purposes  pursuant to any of the  Company's  stock option or stock
purchase plans,  (iii)  exercises or conversions  under the Series C Convertible
Preferred  Stock   transaction  dated  February  16,  2000,  (iv)  exercises  or
conversions  under the Secured  Convertible Note transaction dated June 8, 2000,
(v) shares of Common Stock issuable upon conversion of the Notes, (vi) issuances
of securities as  consideration  in a merger,  consolidation  or  acquisition of
assets,  or in connection  with any strategic  partnership or joint venture (the
primary purpose of which is not to raise equity  capital),  or as  consideration
for the acquisition of a business,  product or license by the Company, and (vii)
the issuance of securities  pursuant to an  underwritten  public offering (which
shall not include equity lines of credit or similar financing structures)

          (v) If the  Company,  at any time while Notes are  outstanding,  shall
distribute to all holders of Common Stock (and not to Holders)  evidences of its
indebtedness  or assets or rights or warrants to  subscribe  for or purchase any
security,  then in each  such case the  Conversion  Price at which  Notes  shall
thereafter be  convertible  shall be determined by  multiplying  the  Conversion
Price in effect  immediately prior to the record date fixed for determination of
stockholders  entitled to receive such  distribution  by a fraction of which the
denominator shall be the Per Share Market Value determined as of the record date
mentioned above, and of which the numerator shall be such Per Share Market Value
on such record  date less the then fair market  value at such record date of the
portion of such assets or evidence of indebtedness so distributed  applicable to
one  outstanding  share  of the  Common  Stock  as  determined  by the  Board of
Directors, in its sole discretion, in good faith. In either case the adjustments
shall be  described  in a  statement  provided  to the Holders of the portion of
assets or evidences of indebtedness so distributed or such  subscription  rights
applicable to one share of Common Stock.  Such adjustment shall be made whenever
any such  distribution is made and shall become effective  immediately after the
record date mentioned above.

                                      -12-
<PAGE>
          (vi)  In case  of any  reclassification  of the  Common  Stock  or any
compulsory  share exchange  pursuant to which the Common Stock is converted into
other securities,  cash or property, the Holders shall have the right thereafter
to, at their option, (A) convert the then outstanding principal amount, together
with all accrued but unpaid  interest and any other amounts then owing hereunder
in respect of this Note only into the shares of stock and other securities, cash
and property receivable upon or deemed to be held by holders of the Common Stock
following such reclassification or share exchange,  and the Holders of the Notes
shall be entitled upon such event to receive such amount of securities,  cash or
property as the shares of the Common  Stock of the  Company  into which the then
outstanding principal amount,  together with all accrued but unpaid interest and
any other  amounts then owing  hereunder in respect of this Note could have been
converted  immediately  prior to such  reclassification  or share exchange would
have been  entitled or (B) require  the Company to prepay the  aggregate  of its
outstanding  principal amount of Notes,  plus all interest and other amounts due
and payable thereon,  at a price determined in accordance with Section 3(b). The
entire  prepayment  price shall be paid in cash.  This provision shall similarly
apply to successive reclassifications or share exchanges.

          (vii)  All  calculations  under  this  Section  4 shall be made to the
nearest  cent or the  nearest  1/100th  of a  share,  as the  case  may  be.  No
adjustments in the Conversion Price shall be required if such adjustment is less
than $0.01,  provided,  however,  that any  adjustments  which by reason of this
Section  are not  required  to be made shall be carried  forward  and taken into
account in any subsequent adjustment.

          (viii)  Whenever the Conversion  Price is adjusted  pursuant to any of
Section  4(c)(ii) - (v), the Company shall promptly mail to each Holder a notice
setting forth the  Conversion  Price after such  adjustment  and setting forth a
brief statement of the facts requiring such adjustment.

          (ix) If (A)  the  Company  shall  declare  a  dividend  (or any  other
distribution)  on the Common  Stock;  (B) the  Company  shall  declare a special
nonrecurring  cash  dividend on or a  redemption  of the Common  Stock;  (C) the
Company  shall  authorize the granting to all holders of the Common Stock rights
or warrants to  subscribe  for or  purchase  any shares of capital  stock of any
class or of any  rights;  (D) the  approval of any  stockholders  of the Company
shall be required in connection with any  reclassification  of the Common Stock,
any  consolidation  or  merger  to which  the  Company  is a party,  any sale or
transfer  of all or  substantially  all of the  assets  of the  Company,  of any
compulsory  share  exchange  whereby the Common  Stock is  converted  into other
securities,  cash or property;  (E) the Company shall authorize the voluntary or
involuntary  dissolution,  liquidation  or  winding  up of  the  affairs  of the
Company;  then, in each case, the Company shall notify the Holders at their last
addresses as they shall appear upon the stock books of the Company,  at least 20
calendar  days prior to the  applicable  record or  effective  date  hereinafter
specified,  a notice  stating  (x) the date on which a record is to be taken for
the purpose of such dividend,  distribution,  redemption, rights or warrants, or
if a record is not to be taken,  the date as of which the  holders of the Common

                                      -13-
<PAGE>
Stock of record to be  entitled  to such  dividend,  distributions,  redemption,
rights  or  warrants  are to be  determined  or  (y)  the  date  on  which  such
reclassification,  consolidation,  merger,  sale,  transfer or share exchange is
expected to become  effective or close,  and the date as of which it is expected
that holders of the Common  Stock of record shall be entitled to exchange  their
shares of the Common Stock for  securities,  cash or other property  deliverable
upon such  reclassification,  consolidation,  merger,  sale,  transfer  or share
exchange,  provided,  that the failure to mail such notice or any defect therein
or in the mailing thereof shall not affect the validity of the corporate  action
required to be specified in such notice.  Holders are entitled to convert  Notes
during the 20-day  period  commencing  the date of such notice to the  effective
date of the event triggering such notice.

          (x) In case of any (1) merger or  consolidation of the Company with or
into  another  Person,  or (2) sale by the Company of more than  one-half of the
assets  of the  Company  (on an as valued  basis) in one or a series of  related
transactions,  a Holder shall have the right,  to (A) if permitted under Section
3(b) hereof,  exercise its rights of prepayment  under Section 3(b) with respect
to such  event,  or (B)  convert its  aggregate  principal  amount of Notes then
outstanding  into the shares of stock and other  securities,  cash and  property
receivable  upon or deemed to be held by holders of Common Stock  following such
merger, consolidation or sale, and such Holder shall be entitled upon such event
or series of  related  events to receive  such  amount of  securities,  cash and
property  as the shares of Common  Stock into  which  such  aggregate  principal
amount of Notes  could have been  converted  immediately  prior to such  merger,
consolidation  or sales would have been entitled,  or (C) exercise its rights to
declare an Event of Default  (as  defined in Section 3)  pursuant  to Section 3.
This provision shall similarly apply to successive such events.

     (d) The  Company  covenants  that it will at all  times  reserve  and  keep
available out of its authorized  and unissued  shares of Common Stock solely for
the purpose of issuance upon  conversion of the Notes and payment of interest on
the Notes,  each as herein  provided,  free from preemptive  rights or any other
actual  contingent  purchase rights of persons other than the Holders,  not less
than  such  number  of  shares  of the  Common  Stock as shall  (subject  to any
additional  requirements  of the  Company as to  reservation  of such shares set
forth  in  the  Purchase   Agreement)  be  issuable  (taking  into  account  the
adjustments  and  restrictions  of  Section  4(b))  upon the  conversion  of the
outstanding principal amount of the Notes and payment of interest hereunder. The
Company  covenants  that all shares of Common  Stock  that shall be so  issuable
shall,  upon  issue,  be duly and  validly  authorized,  issued and fully  paid,
nonassessable  and, if the  Underlying  Shares  Registration  Statement has been
declared  effective  under the  Securities  Act,  registered  for public sale in
accordance with such Underlying Shares Registration Statement.

     (e) Upon a conversion  hereunder the Company shall not be required to issue
stock certificates representing fractions of shares of the Common Stock, but may
if otherwise permitted,  make a cash payment in respect of any final fraction of
a share based on the Per Share Market Value at such time. If the Company  elects
not, or is unable, to make such a cash payment,  the Holder shall be entitled to
receive,  in lieu of the final  fraction  of a share,  one whole share of Common
Stock.

     (f) The  issuance  of  certificates  for  shares  of the  Common  Stock  on
conversion of the Notes shall be made without charge to the Holders  thereof for
any  documentary  stamp or  similar  taxes that may be payable in respect of the
issue or delivery of such  certificate,  provided  that the Company shall not be
required to pay any tax that may be payable in respect of any transfer  involved
in the issuance and delivery of any such  certificate  upon conversion in a name
other than that of the Holder of such Notes so converted  and the Company  shall
not be required to issue or deliver such certificates unless or until the person

                                      -14-
<PAGE>
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.

     (g) Any  and all  notices  or  other  communications  or  deliveries  to be
provided by the Holders hereunder, including, without limitation, any Conversion
Notice, shall be in writing and delivered  personally,  by facsimile,  sent by a
nationally  recognized  overnight  courier  service  or  sent  by  certified  or
registered  mail,  postage  prepaid,  addressed to the Company at 1811  Chestnut
Street,  Suite  120,  Philadelphia,  PA 19103,  facsimile  No.:  (215)  972-8183
attention Chief Financial Officer,  or such other address or facsimile number as
the Company may specify for such purposes by notice to the Holders  delivered in
accordance with this Section, with a copy (other than for Conversion Notices) to
Schnader   Harrison  Segal  &  Lewis  LLP  (facsimile  number  (215)  751-2205),
attention: Richard P. Jaffe, Esq. Any and all notices or other communications or
deliveries  to be  provided  by the  Company  hereunder  shall be in writing and
delivered  personally,  by facsimile,  sent by a nationally recognized overnight
courier  service or sent by  certified  or  registered  mail,  postage  prepaid,
addressed to each Holder at the  facsimile  telephone  number or address of such
Holder appearing on the books of the Company,  or if no such facsimile telephone
number or address appears, at the principal place of business of the Holder. Any
notice or other communication or deliveries  hereunder shall be deemed given and
effective  on the  earliest of (i) the date of  transmission,  if such notice or
communication  is delivered via facsimile and the party giving such notice has a
confirmation  of transmission  setting forth the date and time of  transmission,
which was produced by the facsimile  machine at the facsimile  telephone  number
specified in this Section prior to 6:30 p.m. (New York City time), (ii) the date
after the date of transmission, if such notice or communication is delivered via
facsimile and the party giving such notice has a  confirmation  of  transmission
setting  forth  the date and time of  transmission,  which was  produced  by the
facsimile  machine at the facsimile  telephone  number specified in this Section
later  than 6:30 p.m.  (New York City time) on any date and  earlier  than 11:59
p.m.  (New York City  time) on such date,  (iii) four days after  deposit in the
United States mail, (iv) the Business Day following the date of mailing, if sent
by nationally  recognized  overnight courier service, or (v) upon actual receipt
by the party to whom such notice is required to be given.

     (h) Notwithstanding  anything contained in this Note to the contrary,  upon
receipt of an Optional Prepayment Notice, prior to the Optional Prepayment Date,
the Holder may  convert no more than such  amount of the Note so as to allow for
conversion of up to 1% of the Common Stock then outstanding,  or up to 2% of the
U.S. Wireless  Corporation  common stock then  outstanding;  the remainder to be
redeemed or prepaid in accordance with the Optional Prepayment Notice.

     SECTION 5. OPTIONAL PREPAYMENT.

     (a) The Company shall have the right,  exercisable  from time to time after
the Original  Issue Date and upon five Trading Days' prior written notice to the
affected Holders (an "Optional Prepayment Notice"), to prepay all or any portion
of the outstanding  principal amount of the Notes for which  Conversion  Notices
have  not  previously  been  delivered.   The  prepayment  price  applicable  to

                                      -15-
<PAGE>
prepayments under this Section 5(a) shall be paid in cash on the seventh Trading
Day following the date that the Company first delivered the Optional  Prepayment
Notice (the  "Optional  Prepayment  Date"),  in accordance  with the  Prepayment
Amount (as defined in Section 6). Any such prepayment shall be free of any claim
of  subordination.  The Holders shall have the right to tender,  and the Company
shall honor,  Conversion  Notices delivered prior to the expiration of the fifth
Trading Day after delivery of an Optional Prepayment Notice for such Notes.

     (b) The Company  shall not be  entitled  to deliver an Optional  Prepayment
Notice to the Holder (and, if after  delivery  thereof and prior to the Optional
Prepayment  Date,  any of the following  conditions  shall cease to be met, such
notice,  at the option of the Holders,  shall be deemed no longer effective) if:
(i) the number of shares of Common  Stock at the time  authorized,  unissued and
unreserved for all purposes is insufficient to satisfy the Company's  conversion
obligations of the aggregate principal amount of Notes then outstanding, or (ii)
there is neither an effective  Underlying  Shares  Registration  Statement under
which the Holders can resell all of the issued  Underlying Shares and all of the
Underlying  Shares as are  issuable  upon  conversion  in full of the  principal
amount of Notes  subject to an  Optional  Prepayment  Notice nor may all of such
issued and  issuable  Underlying  Shares be sold by the Holders  subject to such
prepayment  without volume  restrictions  pursuant to Rule 144 promulgated under
the  Securities  Act,  as  determined  by counsel to the  Company  pursuant to a
written  opinion letter,  addressed to the Company's  transfer agent in the form
and substance  acceptable to the Holders and such transfer  agent,  or (iii) the
Common  Stock is not then  listed for  trading on the NASDAQ or on a  Subsequent
Market.

     (c) If any  portion  of the  Prepayment  Amount  shall  not be  paid by the
Company by the expiration of the Optional  Prepayment  Date, the Company may not
again  exercise any right of  prepayment  under this Section.  In addition,  the
Prepayment  Amount shall be  increased by 18% per annum (or such lesser  maximum
amount that is permitted to be paid by applicable  law) to accrue daily from the
date such  interest is due  hereunder  through and including the date of payment
(which  amount  shall be paid as  liquidated  damages and not as a penalty).  In
addition,  if any portion of the  Prepayment  Amount  remains unpaid through the
expiration  of  the  Optional  Prepayment  Date,  the  Holder  subject  to  such
prepayment  may elect by  written  notice to the  Company  to either  (x) demand
conversion in accordance with the formula and the time period therefor set forth
in  Section  4 of any  portion  of the  principal  amount of Notes for which the
Prepayment Amount, plus accrued liquidated damages and accrued interest thereon,
has not been paid in full (the "Unpaid Prepayment  Principal Amount"),  in which
event the  applicable Per Share Market Value shall be the lower of the Per Share
Market Value calculated on the Optional Prepayment Date and the Per Share Market
Value as of the Holder's  written  demand for  conversion,  or (y) invalidate AB
INITIO such optional  prepayment,  notwithstanding  anything herein contained to
the contrary.  If the Holder elects option (x) above, the Company shall,  within
three Trading Days after such election is deemed delivered hereunder, deliver to
the Holder the shares of Common Stock  issuable  upon  conversion  of the Unpaid
Prepayment  Principal  Amount  subject to such  conversion  demand and otherwise
perform its  obligations  hereunder with respect  thereto.  If the Holder elects
option (y) above,  the Company shall  promptly,  and in any event not later than
three Trading Days from receipt of notice of such election, return to the Holder
new Notes for the full Unpaid  Prepayment  Principal  Amount and shall no longer
have any prepayment rights under this Note.

                                      -16-
<PAGE>
     SECTION 6. DEFINITIONS.  For the purposes hereof, the following terms shall
have the following meanings:

     "BUSINESS  DAY"  means any day  except  Saturday,  Sunday and any day which
shall be a federal  legal holiday in the United States or a day on which banking
institutions in the State of New York or the Commonwealth of  Massachusetts  are
authorized or required by law or other government action to close.

     "CHANGE  OF  CONTROL  TRANSACTION"  means the  occurrence  of any of (i) an
acquisition  after the date hereof by an  individual  or legal entity or "group"
(as  described  in Rule  13d-5(b)(1)  promulgated  under  the  Exchange  Act) of
effective  control  (whether  through legal or  beneficial  ownership of capital
stock of the  Company,  by  contract  or  otherwise)  of in excess of 50% of the
voting securities of the Company, (ii) a replacement at one time or over time of
more than one-half of the members of the Company's  board of directors  which is
not approved by a majority of those  individuals who are members of the board of
directors on the date hereof (or by those individuals who are serving as members
of the board of directors on any date whose nomination to the board of directors
was  approved  by a majority of the  members of the board of  directors  who are
members  on the date  hereof),  (iii)  the  merger of the  Company  with or into
another entity that is not wholly-owned by the Company, consolidation or sale of
50% or  more  of the  assets  of the  Company  in  one or a  series  of  related
transactions,  or (iv) the execution by the Company of an agreement to which the
Company is a party or by which it is bound,  providing for any of the events set
forth above in (i), (ii) or (iii).

     "CLOSING  PRICE" means on any  particular  date (a) the closing sales price
per share of Common  Stock on such  date on the  Subsequent  Market on which the
shares of Common  Stock are then listed or quoted,  or if there is no such price
on such date, then the closing sales price on the Subsequent  Market on the date
nearest  preceding  such date, or (b) if the shares of Common Stock are not then
listed or quoted on a Subsequent  Market, the closing sales price for a share of
Common  Stock in the  NASDAQ,  as  reported  by the  National  Quotation  Bureau
Incorporated or similar  organization  or agency  succeeding to its functions of
reporting prices) at the close of business on such date, or (c) if the shares of
Common Stock are not then reported by the National Quotation Bureau Incorporated
(or similar  organization  or agency  succeeding  to its  functions of reporting
prices), then the average of the "Pink Sheet" quotes for the relevant conversion
period,  as  determined  in good  faith by the  Holder,  or (d) if the shares of
Common  Stock are not then  publicly  traded the fair market value of a share of
Common Stock as determined by an Appraiser selected in good faith by the Holders
of a majority in interest of the principal amount of Notes then outstanding.

     "COMMISSION" means the Securities and Exchange Commission.

     "COMMON  STOCK" means the common  stock,  $.01 par value per share,  of the
Company and stock of any other class into which such shares may  hereafter  have
been reclassified or changed.

     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

                                      -17-
<PAGE>
     "INTEREST  EFFECTIVENESS  DATE"  means  the  earlier  to  occur  of (x) the
Effectiveness  Date  and (y) the date  that an  Underlying  Shares  Registration
Statement is declared effective by the Commission.

     "MANDATORY  PREPAYMENT AMOUNT" for any Notes shall equal the sum of (i) the
greater of (A) 120% of the  principal  amount of Notes to be  prepaid,  plus all
accrued and unpaid interest thereon, and (B) the principal amount of Notes to be
prepaid, plus all accrued and unpaid interest thereon, divided by the Conversion
Price  multiplied by the Closing Price on (x) the date the Mandatory  Prepayment
Amount is demanded or  otherwise  due or (y) the date the  Mandatory  Prepayment
Amount is paid in full, whichever is greater, and (ii) all other amounts, costs,
expenses and liquidated damages due in respect of such Notes.

     "ORIGINAL  ISSUE  DATE"  shall mean the date of the first  issuance  of the
Notes  regardless  of the number of transfers of any Note and  regardless of the
number of instruments which may be issued to evidence such Note.

     "PER SHARE MARKET VALUE" means on any  particular  date (a) the closing bid
price per share of Common Stock on such date on the NASDAQ or on such Subsequent
Market on which the  shares of Common  Stock are then  listed or  quoted,  or if
there is no such price on such date, then the closing bid price on the NASDAQ or
on such Subsequent Market on the date nearest preceding such date, or (b) if the
shares  of  Common  Stock  are not then  listed  or  quoted  on the  NASDAQ or a
Subsequent  Market,  the  closing  bid price for a share of Common  Stock in the
over-the-counter   market,   as  reported  by  the  National   Quotation  Bureau
Incorporated or similar  organization  or agency  succeeding to its functions of
reporting prices) at the close of business on such date, or (c) if the shares of
Common Stock are not then reported by the National Quotation Bureau Incorporated
(or similar  organization  or agency  succeeding  to its  functions of reporting
prices), then the average of the "Pink Sheet" quotes for the relevant conversion
period,  as  determined  in good  faith by the  Holder,  or (d) if the shares of
Common  Stock are not then  publicly  traded the fair market value of a share of
Common Stock as determined by an Appraiser selected in good faith by the Holders
of a majority in interest of the principal amount of Notes then outstanding.

     "PERSON" means a corporation, an association, a partnership,  organization,
a business,  an individual,  a government or political  subdivision thereof or a
governmental agency.

     "PREPAYMENT  AMOUNT" means (i) for the period from the Original  Issue Date
until and including the 90th day following the Original Issue Date,  115%,  (ii)
for the period from the 91st day  following  the  Original  Issue Date until and
including the 180th day following the Original Issue Date,  120%,  (iii) for the
period from the 181st day following the Original  Issue date until and including
the 270th day following the Original Issue Date, 130%, and (iv) on and after the
271st day following the Original Issue Date, 140%.

                                      -18-
<PAGE>
     "PURCHASE  AGREEMENT" means the Convertible Note Purchase Agreement,  dated
as of the Original Issue Date, to which the Company and the original  Holder are
parties,  as amended,  modified or supplemented  from time to time in accordance
with its terms.

     "REGISTRATION  RIGHTS  AGREEMENT" means the Registration  Rights Agreement,
dated as of the  Original  Issue Date,  to which the  Company  and the  original
Holder are parties,  as amended,  modified or supplemented  from time to time in
accordance with its terms.

     "SECURITIES ACT" means the Securities Act of 1933, as amended.

     "TRADING  DAY"  means  (a) a day on which the  shares  of Common  Stock are
traded on the NASDAQ or on such Subsequent  Market on which the shares of Common
Stock are then  listed or quoted,  or (b) if the shares of Common  Stock are not
listed on the NASDAQ or a Subsequent Market, a day on which the shares of Common
Stock are traded in the over-the-counter market, as reported by the OTC Bulletin
Board,  or (c) if the shares of Common  Stock are not quoted on the OTC Bulletin
Board,   a  day  on  which  the  shares  of  Common  Stock  are  quoted  in  the
over-the-counter   market  as  reported  by  the   National   Quotation   Bureau
Incorporated (or any similar  organization or agency succeeding its functions of
reporting prices);  provided,  that in the event that the shares of Common Stock
are not listed or quoted as set forth in (a),  (b) and (c) hereof,  then Trading
Day shall mean any day except a Business Day.

     "TRANSACTION  DOCUMENTS"  shall have the meaning set forth in the  Purchase
Agreement.

     "UNDERLYING  SHARES"  means  the  shares  of  Common  Stock  issuable  upon
conversion  of Notes or as  payment of  interest  in  accordance  with the terms
hereof.

     "UNDERLYING SHARES REGISTRATION  STATEMENT" means a registration  statement
meeting  the  requirements  set  forth  in the  Registration  Rights  Agreement,
covering among other things the resale of the  Underlying  Shares and naming the
Holder as a "selling stockholder" thereunder.

     SECTION 7. Except as expressly  provided herein,  no provision of this Note
shall alter or impair the  obligation  of the  Company,  which is  absolute  and
unconditional, to pay the principal of, interest and liquidated damages (if any)
on, this Note at the time, place, and rate, and in the coin or currency,  herein
prescribed.  This Note is a direct  obligation  of the Company.  This Note ranks
pari  passu with all other  Notes now or  hereafter  issued  under the terms set
forth  herein.  As long as there are Notes  outstanding,  the Company shall not,
without the consent of the Holders,  (i) amend its certificate of incorporation,
bylaws or other  charter  documents so as to adversely  affect any rights of the
Holders;  (ii) repay,  repurchase  or offer to repay,  repurchase  or  otherwise
acquire shares of its Common Stock or other equity  securities  other than as to
the Underlying  Shares to the extent permitted or required under the Transaction
Documents;  or  (iii)  enter  into  any  agreement  with  respect  to any of the
foregoing.  The Company may voluntarily prepay the outstanding  principal amount
on the Notes in accordance with Section 5 hereof.

                                      -19-
<PAGE>
     SECTION 8. This Note shall not entitle the Holder to any of the rights of a
stockholder of the Company,  including without limitation, the right to vote, to
receive  dividends and other  distributions,  or to receive any notice of, or to
attend, meetings of stockholders or any other proceedings of the Company, unless
and to the extent  converted into shares of Common Stock in accordance  with the
terms hereof.

     SECTION 9. If this Note shall be mutilated,  lost, stolen or destroyed, the
Company shall  execute and deliver,  in exchange and  substitution  for and upon
cancellation of a mutilated  Note, or in lieu of or in substitution  for a lost,
stolen or destroyed  Note, a new Note for the  principal  amount of this Note so
mutilated,  lost,  stolen or destroyed but only upon receipt of evidence of such
loss,  theft or  destruction  of such Note,  and of the  ownership  hereof,  and
indemnity, if requested, all reasonably satisfactory to the Company.

     SECTION  10.  Except  as  disclosed  in  Schedule  2.1(c)  to the  Purchase
Agreement,  no  indebtedness  of the  Company is senior to this Note in right of
payment,  whether  with  respect to  interest,  damages or upon  liquidation  or
dissolution  or  otherwise.  The Company will not and will not permit any of its
subsidiaries to, directly or indirectly,  enter into, create,  incur,  assume or
suffer to exist any  indebtedness  of any kind, on or with respect to any of its
property or assets now owned or hereafter  acquired or any  interest  therein or
any income or profits  therefrom  that is senior in any respect to the Company's
obligations under the Notes.

     SECTION  11.  The  corporate  law  of  Delaware  shall  govern  all  issues
concerning  the  relative  rights of the Company and its  stockholders.  All the
questions concerning the construction,  validity, enforcement and interpretation
of this Agreement  shall be governed by and construed and enforced in accordance
with  the  internal  laws  of the  State  of New  York,  without  regard  to the
principles  of  conflicts  of law  thereof.  The Company  and the Holder  hereby
irrevocably  submits to the jurisdiction of the state and federal courts sitting
in the City of New York,  Borough  of  Manhattan,  for the  adjudication  of any
dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein,  and hereby  irrevocably  waives,  and agrees not to
assert in any suit,  action or  proceeding,  any claim that it is not personally
subject to the  jurisdiction  of any such  court,  or that such suit,  action or
proceeding is improper.  Each of the Company and the Holder  hereby  irrevocably
waives  personal  service of process and consents to process being served in any
such suit,  action or proceeding by receiving a copy thereof sent to the Company
at the address in effect for notices to it under this instrument and agrees that
such service shall constitute good and sufficient  service of process and notice
thereof.  Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.

     SECTION  12.  Any  waiver by the  Company  or the Holder of a breach of any
provision  of this Note shall not operate as or be  construed  to be a waiver of
any other breach of such  provision  or of any breach of any other  provision of
this Note.  The  failure of the  Company  or the  Holder to insist  upon  strict
adherence  to any  term of  this  Note on one or  more  occasions  shall  not be
considered a waiver or deprive that party of the right thereafter to insist upon
strict adherence to that term or any other term of this Note. Any waiver must be
in writing.

                                      -20-
<PAGE>
     SECTION  13.  If  any  provision  of  this  Note  is  invalid,  illegal  or
unenforceable,  the  balance  of this Note shall  remain in  effect,  and if any
provision is inapplicable to any person or circumstance,  it shall  nevertheless
remain applicable to all other persons and  circumstances.  If it shall be found
that any interest or other amount deemed  interest due  hereunder  shall violate
applicable laws governing  usury,  the applicable rate of interest due hereunder
shall  automatically be lowered to equal the maximum permitted rate of interest.
The Company  covenants  (to the extent that it may lawfully do so) that it shall
not at any time insist upon,  plead, or in any manner  whatsoever  claim or take
the benefit or advantage of, any stay, extension or usury law or other law which
would  prohibit  or forgive  the  Company  from paying all or any portion of the
principal of or interest on the Notes as contemplated herein,  wherever enacted,
now or at any time hereafter in force,  or which may affect the covenants or the
performance of this indenture, and the Company (to the extent it may lawfully do
so) hereby  expressly  waives all  benefits or  advantage  of any such law,  and
covenants that it will not, by resort to any such law,  hinder,  delay or impede
the  execution  of any power herein  granted to the Holder,  but will suffer and
permit the execution of every such as though no such law has been enacted.

     SECTION 14. Whenever any payment or other obligation hereunder shall be due
on a day other  than a  Business  Day,  such  payment  shall be made on the next
succeeding Business Day.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                             SIGNATURE PAGE FOLLOWS]

                                      -21-
<PAGE>
     IN WITNESS WHEREOF, the Company has caused this Convertible Note to be duly
executed by a duly authorized officer as of the date first above indicated.

                                        GLOBAL TECHNOLOGIES, LTD.

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

                                      -22-
<PAGE>
                                    EXHIBIT A

                              NOTICE OF CONVERSION

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

The undersigned hereby elects to convert the attached Note into:

     [ ] shares of common stock,  $.01 par value per share (the "Common Stock"),
of Global Technologies, Ltd. (the "Company") according to the conditions hereof,
as of the date written below or ;

     [ ] shares of common  stock,  $.01 par value per  share,  of U.S.  Wireless
Corporation according to the conditions hereof, as of the date written below or;

     [ ] shares of Common Stock, and shares of common stock,  $.01 par value per
share, of U.S. Wireless  Corporation  according to the conditions  hereof, as of
the date written below.

If shares are to be issued in the name of a person  other than the  undersigned,
the undersigned  will pay all transfer taxes payable with respect thereto and is
delivering  herewith such  certificates and opinions as reasonably  requested by
the Company in  accordance  therewith.  No fee will be charged to the holder for
any conversion, except for such transfer taxes, if any.

Conversion calculations:
                                  Date to Effect Conversion

                                  Principal Amount of Notes to be Converted

                                  Number of shares of Common Stock to be Issued

                                  Conversion Price

                                  Signature

                                  Name

                                  Address

ACCEPTED AND AGREED:

GLOBAL TECHNOLOGIES, LTD.

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

                                      -23-
<PAGE>
                                   SCHEDULE 1

                               CONVERSION SCHEDULE

8%  Convertible  Secured  Notes,  due  in  the  aggregate  principal  amount  of
$7,000,000 issued  by Global  Technologies, Ltd. and convertible into shares of:
[ ]  Global  Technologies,  Ltd.,  and/or  [  ]  U.S. Wireless  Corporation,  as
applicable.

Dated:

<TABLE>
<CAPTION>
                                                AGGREGATE PRINCIPAL
                                                  AMOUNT REMAINING
DATE OF CONVERSION     AMOUNT OF CONVERSION   SUBSEQUENT TO CONVERSION    COMPANY ATTEST
<S>                    <C>                    <C>                         <C>
------------------     --------------------   ------------------------    --------------

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

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

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

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

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

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

------------------     --------------------   ------------------------    --------------
</TABLE>

                                      -24-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]