Document:

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED 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.

                    WORLD WIDE WIRELESS COMMUNICATIONS, INC.
                      (Incorporated in the State of Nevada)

                        4% CONVERTIBLE DEBENTURE DUE 2005

No. CD-__                                   Principal Amount U.S. $_____________
                                            Original Issue Date:  April 14, 2000

         FOR  VALUE  RECEIVED,  World  Wide  Wireless  Communications,  Inc.,  a
corporation duly incorporated and existing under the laws of the State of Nevada
(the "Company"),  hereby promises to pay to the order of ______________________,
or  registered  assigns  (hereinafter,  the  "Holder"),  the  principal  sum  of
______________________  United States Dollars  ($________________)  on April 14,
2005 (the  "Maturity  Date"),  subject  to  earlier  conversion,  redemption  or
exchange as provided  herein.  The Debentures will be convertible into shares of
common stock,  par value $.001 per share, of the Company ("Common Stock") on the
terms and subject to the conditions  hereinafter set forth at any time after the
date  hereof.  Interest  shall be paid on the unpaid  principal  balance of this
Debenture  at the rate of 4% per annum  from the date  hereof,  payable,  in the
manner  set  forth  below,  upon  conversion,  redemption  or  maturity  of this
Debenture  to the person that is the Holder on the date of such event.  Interest
hereon shall be  calculated on the basis of a 360 day year and the actual number
of days elapsed.

         1. General.  (a) This  Debenture is one of a duly  authorized  issue of
Debentures of the Company in original  aggregate  principal amount of $4,592,000
designated  as its  4%  Convertible  Debentures  due  2005  (herein  called  the
"Debentures"), issued pursuant to the authorization of the Board of Directors of
the Company and issued pursuant to a Securities Purchase Agreement,  dated April
14, 2000, by and among the Company and the  Purchasers  identified  therein (the
"Securities  Purchase  Agreement").  The Securities  Purchase Agreement contains
certain  additional  terms that are binding  upon the Company and each holder of
the Debentures.

         (b)  The  Debentures  are  issuable,   without  coupons,  in  principal
denominations of U.S. $1,000 and integral multiples thereof. The Debentures, and
transfers  thereof,  shall be in registered  form.  The  registered  holder of a
Debenture  shall (to the fullest extent  permitted by applicable law) be treated
at all times,  by all persons and for all purposes as the absolute owner of such
Debenture,  regardless  of any  notice  of  ownership,  theft  or loss or of any
writing thereon.

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         2. Principal.  The Aggregate Principal Amount (as defined in Section 7)
of this Debenture shall be converted into shares of Common Stock on the Maturity
Date in accordance with the terms hereof.  The Company may not prepay all or any
portion of this Debenture, except as specifically provided herein.

         3. Interest.  Each Debenture  shall be entitled to receive  interest at
the rate of 4.0% per annum, compounded semi-annually, on the Aggregate Principal
Amount  thereof.  Such  interest  shall  be due  and  payable  upon  conversion,
redemption  or  maturity  of this  Debenture.  Interest  shall  accrue  from the
Original  Issue Date (as  defined  herein),  whether or not earned or  declared,
until  maturity or such time as the Debenture has been  converted,  exchanged or
redeemed as herein  provided.  Interest is payable on the Debentures on the last
day of June and  December of each year by  increasing  the  Aggregate  Principal
Amount of the  Debentures by the amount of such  interest.  Such increase in the
Aggregate Principal Amount shall constitute full payment of such interest.  When
any interest is added to the Aggregate  Principal  Amount,  such interest shall,
for all  purposes  of this  Debenture,  be  deemed  to be part of the  Aggregate
Principal  Amount  for  purposes  of  determining  interest  thereafter  payable
hereunder and amounts  thereafter  convertible into Common Stock hereunder,  and
all references herein to the Aggregate Principal Amount shall mean the Aggregate
Principal  Amount,  as  adjusted  pursuant  to this  Section 3. The  interest so
payable will be paid to the person in whose name the  Debenture  (or one or more
predecessor  debentures)  is registered on the records of the Company  regarding
registration  and  transfers  of the  Debentures;  provided,  however,  that the
Company's  obligation  to a  transferee  of a  Debenture  arises  only  if  such
transfer,  sale or other  disposition  is made in accordance  with the terms and
conditions hereof and the Securities Purchase Agreement.

         4. Conversion at the Option of the Holder. (a) (i) The Debentures shall
be convertible into shares of Common Stock (subject to Section  4(a)(ii)) at the
Conversion  Ratio (as  defined  in Section 7) at the option of the holder of the
Debentures in whole or in part at any time. If any Debentures remain outstanding
on the  Maturity  Date,  then all such  Debentures  shall  be  converted  at the
Conversion  Ratio as of such date in accordance  with this Section 4. To convert
Debentures  into shares of Common Stock on any date, the Holder hereof shall (A)
transmit by facsimile (or otherwise  deliver),  for receipt on or prior to 11:59
p.m.,  Eastern time, on such date, a copy of an executed notice of conversion in
the form attached hereto as Exhibit 1 (the  "Conversion  Notice") to the Company
with a copy thereof to the Company's  designated  transfer  agent (the "Transfer
Agent") and (B) if required by Section  4(b)(iv),  surrender to a common carrier
for delivery to the Transfer  Agent as soon as  practicable  following such date
the original  Debentures  representing  the  Debentures  being  converted (or an
indemnification  undertaking  with  respect to such  shares in the case of their
loss,  theft or  destruction)  (the "Debenture  Certificates").  Each Conversion
Notice  shall  specify  the  Aggregate  Principal  Amount  of  Debentures  to be
converted.  The date as of which such  conversion is to be effected shall be the
date the Holder  delivers such Conversion  Notice by facsimile (the  "Conversion
Date")(if such date is not a Business Day, then the Conversion  Date will be the
next following  Business Day).  Subject to Section 4(b) hereof,  each Conversion
Notice, once given, shall be irrevocable.  Upon receipt by the Company of a copy
of a Conversion Notice, the Company shall (1) as soon as practicable,  but in no
event  later  than  within  one  (1)  Business  Day,  send,  via  facsimile,   a
confirmation  of  receipt  of such  Conversion  Notice  to such  Holder  and the
Transfer  Agent,  which  confirmation  shall  constitute an  instruction

                                      -2-

<PAGE>

to the Transfer Agent to process such  Conversion  Notice in accordance with the
terms herein and (2) on or before the second  (2nd)  Trading Day  following  the
date of receipt by the Company of such Conversion  Notice (the "Delivery Date"),
(A) issue and deliver to the address as specified in the  Conversion  Notice,  a
certificate,  registered  in the name of the  Holder  or its  designee,  for the
number of shares of Common Stock to which the Holder  shall be entitled,  or (B)
provided the Transfer Agent is  participating  in The  Depository  Trust Company
("DTC") Fast  Automated  Securities  Transfer  Program,  upon the request of the
Holder,  credit  such  aggregate  number of shares of Common  Stock to which the
Holder shall be entitled to the Holder's or its designee's  balance account with
DTC through its Deposit  Withdrawal  Agent Commission  system.  If the Aggregate
Principal  Amount of  Debentures  represented  by the  Debenture  Certificate(s)
submitted for conversion,  as may be required pursuant to Section  4(b)(iv),  is
greater than the Aggregate Principal Amount of Debentures being converted,  then
the  Company  shall,  as soon as  practicable  and in no  event  later  than the
Delivery  Date and at its own  expense,  issue and  deliver  to the Holder a new
Debenture Certificate  representing the Aggregate Principal Amount of Debentures
not converted.

                  (ii) In no event  shall a Holder be  permitted  to  convert in
         excess  of such  Aggregate  Principal  Amount  of  Debentures  upon the
         conversion of which,  (x) the number of shares of Common Stock owned by
         such Holder (other than shares of Common Stock issuable upon conversion
         of  Debentures  or upon  exercise  of the  Warrants  (as defined in the
         Securities Purchase Agreement)) plus (y) the number of shares of Common
         Stock issuable upon such conversion of such Debentures,  would be equal
         to or exceed (z)  9.999% of the  number of shares of Common  Stock then
         issued and outstanding,  including shares issuable on conversion of the
         Debentures  held by  such  Holder  after  application  of this  Section
         4(a)(ii).  As used herein,  beneficial ownership shall be determined in
         accordance  with Section 13(d) of the Securities  Exchange Act of 1934,
         as amended,  and the rules and  regulations  thereunder.  To the extent
         that the limitation  contained in this Section  4(a)(ii)  applies,  the
         determination  of whether  Debentures are  convertible  (in relation to
         other  securities  owned  by a  Holder)  and of  which  Debentures  are
         convertible  shall be in the sole  discretion  of such Holder,  and the
         submission  of  Debentures  for  conversion  shall be deemed to be such
         Holder's  determination  of whether such Debentures are convertible (in
         relation to other securities owned by a Holder) and of which Debentures
         are  convertible,  in each case  subject to such  aggregate  percentage
         limitation,  and the  Company  shall  have no  obligation  to verify or
         confirm the accuracy of such  determination.  Nothing  contained herein
         shall be deemed to  restrict  the  right of a Holder  to  convert  such
         Debentures  at such  time as  such  conversion  will  not  violate  the
         provisions of this paragraph.  The provisions of this Section  4(a)(ii)
         may be waived by a Holder of  Debentures as to itself (and solely as to
         itself) upon not less than 75 days prior notice to the Company, and the
         provisions of this Section  4(a)(ii) shall continue to apply until such
         75th day (or later,  if stated in the notice of waiver).  No conversion
         in violation of this  paragraph but  otherwise in accordance  with this
         Debenture  shall affect the status of the  securities  issued upon such
         conversion as validly issued, fully-paid and nonassessable.

                                      -3-

<PAGE>

         (b) (i) Not later than any Delivery  Date,  the Company will deliver to
         the  applicable   Holder  by  express  courier  (A)  a  certificate  or
         certificates  which  shall be free of  restrictive  legends and trading
         restrictions  (other  than  those  required  by  Section  3.1(b) of the
         Securities  Purchase  Agreement)  representing  the number of shares of
         Common Stock being acquired upon the conversion of Debentures  (subject
         to  reduction  pursuant  to  Section  4(a)(ii))  and (B) to the  extent
         required  pursuant to Section  4(b)(iv),  a new  Debenture  Certificate
         representing the unconverted Aggregate Principal Amount. If in the case
         of any  Conversion  Notice such new  Debenture  or  Debentures  are not
         delivered to or as directed by the applicable Holder by the fifth (5th)
         Trading Day after the applicable  Conversion  Date, the Holder shall be
         entitled by written  notice to the Company at any time on or before its
         receipt of such  Debenture or  Debentures  thereafter,  to rescind such
         conversion, whereupon the Company and the Holder shall each be restored
         to their respective positions immediately prior to the delivery of such
         notice of  revocation,  except that any amounts  described  in Sections
         4(b)(ii)  and  (iii)  shall  be  payable  through  the date  notice  of
         rescission is given to the Company.

                  (ii) The Company  understands  that a delay in the delivery of
         the shares of Common Stock upon conversion of Debentures and failure to
         deliver  a  new  Debenture   representing  the  unconverted   Aggregate
         Principal Amount beyond the Delivery Date could result in economic loss
         to the  Holder.  If the  Company  fails to deliver  to the Holder  such
         certificate or certificates  pursuant to this Section  hereunder by the
         Delivery  Date for any  reason,  other  than due to the  action  of the
         Holder,  the Company  shall pay to such Holder,  in cash, an amount per
         Trading  Day  for  each  Trading  Day  the  earlier  of the  date  such
         certificates  are  delivered  or the date the  conversion  is rescinded
         pursuant  to Section  4(b)(i)  above,  together  with  interest on such
         amount at a rate of 15% per annum,  accruing  until such amount and any
         accrued  interest  thereon  is paid  in  full,  equal  to (i) 1% of the
         Aggregate  Principal  Amount of the  Debentures,  plus the  accrued and
         unpaid interest  thereon,  requested to be converted for the first five
         Trading  Days  after  the  Delivery  Date and (ii) 2% of the  Aggregate
         Principal  Amount  of the  Debentures,  plus  the  accrued  and  unpaid
         interest  thereon,  requested  to be  converted  for each  Trading  Day
         thereafter  (which amounts shall be paid as liquidated  damages and not
         as a  penalty).  If the  Company  fails to deliver  to the Holder  such
         certificate or certificates  pursuant to this Section prior to the 15th
         Trading  Day after the  Conversion  Date,  the  Company  shall,  at the
         Holder's option,  redeem in cash, from funds legally available therefor
         at the  time of such  redemption,  all or a  portion  of the  Aggregate
         Principal  Amount  of  Debentures  then held by such  Holder,  plus the
         accrued and unpaid interest  thereon,  as requested by such Holder,  in
         cash.  The redemption  price shall be equal to the Aggregate  Principal
         Amount of Debentures requested to be redeemed,  plus accrued and unpaid
         interest  thereon,  multiplied  by the  greater  of (A) 125% or (B) the
         applicable   Conversion  Ratio  as  of  the  date  of  such  redemption
         multiplied  by the  greatest  Per Share Market Value on any Trading Day
         during the period  beginning on the  Conversion  Date and ending on the
         date of payment in full by the Company of such redemption price. If the
         Holder has requested  that the Company  redeem  Debentures  pursuant to
         this Section and the Company fails for any reason to pay the redemption
         price, as calculated  pursuant to the immediately  preceding  sentence,
         within  seven days after such  notice is deemed  delivered  pursuant to
         Section 4(a)(i), the

                                      -4-

<PAGE>

         Company will pay interest on the redemption  price at a rate of 15% per
         annum, in cash to such Holder, accruing from such seventh day until the
         redemption  price  and any  accrued  interest  thereon  is paid in full
         (which  amount  shall  be  paid  as  liquidated  damages  and  not as a
         penalty).  Nothing herein shall limit a Holder's right to pursue actual
         damages for the Company's failure to deliver certificates  representing
         shares of Common  Stock upon  conversion  within  the period  specified
         herein (including, without limitation, damages relating to any purchase
         of shares of Common  Stock by such  Holder to make  delivery  on a sale
         effected in anticipation of receiving certificates  representing shares
         of Common Stock upon conversion,  such damages to be in an amount equal
         to (A) the  aggregate  amount  paid by such  Holder  for the  shares of
         Common  Stock  so  purchased  minus  (B) the  aggregate  amount  of net
         proceeds,  if any,  received by such Holder from the sale of the shares
         of Common Stock which would have been issued by the Company pursuant to
         such  conversion),  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 Delivery  Date and if
         after  the  Delivery  Date  the  Holder  purchases  (in an open  market
         transaction  or  otherwise)  shares  of  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  immediately  pay in cash to the  Holder  (in
         addition  to any  remedies  available  to or elected by the Holder) the
         amount  by which  (A) the  Holder's  total  purchase  price  (including
         brokerage  commissions,  if any)  for the  shares  of  Common  Stock so
         purchased exceeds (B) the Aggregate  Principal Amount of the Debentures
         for  which  such  conversion  was not  timely  honored,  together  with
         interest thereon at a rate of 15% per annum, accruing until such amount
         and any accrued interest thereon is paid in full (which amount shall be
         paid as liquidated damages and not as a penalty).  For example,  if the
         Holder  purchases  shares of Common Stock having a total purchase price
         of $11,000 to cover a Buy-In with respect to an attempted conversion of
         $10,000 Aggregate Principal Amount of Debentures,  the Company shall be
         required to pay the Holder  $1,000,  plus  interest.  The Holder  shall
         provide the Company  written notice  indicating the amounts  payable to
         the Holder in respect of the Buy-In.

                  (iv)  Notwithstanding  anything  to  the  contrary  set  forth
         herein,  upon  conversion of  Debentures  in accordance  with the terms
         hereof,  the  Holder  thereof  shall  not  be  required  to  physically
         surrender the  certificate  representing  the Debentures to the Company
         unless the entire Aggregate Principal Amount of Debentures  represented
         by the  certificate  are being  converted.  The Holder and the  Company
         shall  maintain  records  showing  the  Aggregate  Principal  Amount of
         Debentures so converted and the dates of such  conversions or shall use
         such  other  method,  reasonably  satisfactory  to the  Holder  and the
         Company,  so as not to require  physical  surrender of the  certificate
         representing the Debentures upon each such conversion.  In the event of
         any  dispute  or  discrepancy,  such  records of the  Company  shall be
         controlling  and  determinative  in  the  absence  of  manifest  error.
         Notwithstanding   the  foregoing,   if  Debentures   represented  by  a
         certificate

                                      -5-

<PAGE>

         are converted as aforesaid, the Holder may not transfer the certificate
         representing   the  Debentures   unless  the  Holder  first  physically
         surrenders the certificate  representing the Debentures to the Company,
         whereupon the Company will  forthwith  issue and deliver upon the order
         of the Holder a new certificate of like tenor, registered as the Holder
         may request,  representing  in the aggregate  the  remaining  Aggregate
         Principal Amount of Debentures represented by such certificate.

         (c) (i)  The  conversion  price  for the  Debentures  (the  "Conversion
         Price") in effect on any Conversion  Date shall be the lesser of (A) an
         amount equal to 110% of the average Per Share Market Value for the five
         (5) consecutive  Trading Days immediately  preceding the Original Issue
         Date (the "Fixed  Conversion  Price") and (B) an amount equal to 85% of
         the average Per Share Market Value for the five (5) consecutive Trading
         Days immediately prior to the Conversion Date; provided, however, that,
         in any  Conversion  Notice,  a Holder may  specify a  Conversion  Price
         higher than the Conversion Price then in effect; provided further that,
         if during  any  period (a  "Black-out  Period"),  a Holder is unable to
         trade any Common Stock issued or issuable upon conversion of Debentures
         immediately due to the postponement of filing or delay or suspension of
         effectiveness  of a  registration  statement or because the Company has
         otherwise  informed such Holder that an existing  prospectus  cannot be
         used at that time in the sale or transfer of such  Common  Stock,  such
         Holder shall have the option but not the  obligation on any  Conversion
         Date within ten Trading Days  following the expiration of the Black-out
         Period of using the Conversion Price applicable on such Conversion Date
         or any  Conversion  Price  selected by such Holder that would have been
         applicable had such Conversion Date been at any earlier time during the
         Black-out  Period or within the ten Trading Days  thereafter;  provided
         further, that in no event shall the Conversion Price be below the Floor
         Price.  "Floor Price" shall mean $2.00 for the period  beginning on the
         Original  Issue  Date and  ending on the six month  anniversary  of the
         Original  Issue Date,  $1.27 for the period  beginning on the six month
         anniversary of the Original Issue Date and ending on the eighteen month
         anniversary  of  the  Original   Issue  Date,   and  zero   thereafter.
         Notwithstanding the foregoing, if the Company's revenues for the fiscal
         year ending December 31, 2000, as shown in the Company's  Annual Report
         on Form 10-K for the fiscal year ending  December  31,  2000,  are less
         than $13.5  million,  then from and after the first  anniversary of the
         Original Issue Date the Floor Price shall be zero.

                  (ii) If the  Company,  at any time  while any  Debentures  are
         outstanding,  (a)  shall  pay a  stock  dividend  or  otherwise  make a
         distribution  or  distributions  on shares of its  Common  Stock or any
         other equity security  payable in shares of Common Stock, (b) subdivide
         outstanding  shares of Common Stock into a larger number of shares, (c)
         combine  outstanding  shares of Common  Stock into a smaller  number of
         shares, or (d) issue by  reclassification of shares of Common Stock any
         shares of capital  stock of the  Company,  the Fixed  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   4(c)(ii)  shall  become
         effective immediately after the record date for the

                                      -6-

<PAGE>

         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  Debentures  are
         outstanding,  shall sell or issue additional  shares of Common Stock or
         rights or  warrants  to acquire  shares of Common  Stock at a price per
         share less than the Fixed Conversion Price, excluding any rights of the
         holder of the Debentures or the holders of the Warrants issued pursuant
         to the Securities Purchase Agreement to acquire Common Stock, the Fixed
         Conversion  Price  shall be  multiplied  by a  fraction,  of which  the
         denominator  shall be the number of shares of Common  Stock  (excluding
         treasury  shares,  if any)  outstanding on the date of issuance of such
         shares,  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 Common  Stock  (excluding
         treasury  shares,  if any)  outstanding on the date of issuance of such
         shares,  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 Fixed Conversion  Price. Such adjustment shall be made
         whenever such shares,  rights or warrants are issued,  and shall become
         effective  immediately  after the  issuance of such  shares,  rights or
         warrants or, if such rights or warrants are issued to  stockholders  of
         the  Company,  the record date for the  determination  of  stockholders
         entitled  to  receive  such  rights  or  warrants.  However,  upon  the
         expiration  of any  right or  warrant  to  purchase  Common  Stock  the
         issuance of which  resulted in an  adjustment  in the Fixed  Conversion
         Price pursuant to this Section 4(c)(iii),  if any such right or warrant
         shall expire and shall not have been  exercised,  the Fixed  Conversion
         Price  shall  immediately  upon  such  expiration  be  re-computed  and
         effective  immediately  upon such  expiration be increased to the price
         which it would have been (but  reflecting any other  adjustments in the
         Fixed  Conversion Price made pursuant to the provisions of this Section
         4 after the issuance of such rights or warrants) had the  adjustment of
         the Fixed  Conversion  Price made upon the  issuance  of such rights or
         warrants  been  made on the  basis  of  offering  for  subscription  or
         purchase only that number of shares of Common Stock actually  purchased
         upon the exercise of such rights or warrants actually exercised.

                  (iv)  If  the  Company,  at  any  time  while  Debentures  are
         outstanding,  shall  distribute to all holders of Common Stock (and not
         to holders of Debentures)  evidences of its  indebtedness  or assets or
         rights or warrants to subscribe for or purchase any security (excluding
         those referred to in Sections  4(c)(ii) and (iii) above),  then in each
         such case the Fixed  Conversion Price shall be multiplied by a fraction
         of which the denominator shall be the Per Share Market Value determined
         as of the record date fixed for determination of stockholders  entitled
         to receive such distribution,  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
         Common  Stock as  determined  by the Board of  Directors in good faith;
         provided,  however,  that in the event of a distribution  exceeding ten
         percent of the net assets of the Company,  such fair market value shall
         be determined by an Independent  Appraiser (as defined below)  selected
         in

                                      -7-

<PAGE>

         good faith by the holders of a majority  in  interest of the  Aggregate
         Principal Amount of Debentures then outstanding; and provided, further,
         that  the  Company,   after  receipt  of  the   determination  by  such
         Independent  Appraiser,  shall  have the right to select an  additional
         Independent  Appraiser,  in good  faith,  in which case the fair market
         value shall be equal to the average of the  determinations by each such
         Independent  Appraiser.   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.

                  (v) If the Company at any time subdivides (by any stock split,
         stock dividend,  recapitalization  or otherwise) one or more classes of
         its outstanding shares of Common Stock into a greater number of shares,
         the  Fixed  Conversion  Price  in  effect  immediately  prior  to  such
         subdivision will be proportionately reduced. If the Company at any time
         combines (by combination, reverse stock split or otherwise) one or more
         classes of its outstanding shares of Common Stock into a smaller number
         of shares,  the Fixed Conversion Price in effect  immediately  prior to
         such combination will be proportionately increased.

                  (vi) If the Company in any manner issues or sells  Convertible
         Securities or Options that are  convertible  into or  exchangeable  for
         Common  Stock at a price which varies or may vary with the market price
         of the Common  Stock,  including  by way of one or more  reset(s)  to a
         fixed price (each of the  formulations  for such  variable  price being
         herein referred to as, a "Variable Price"),  and such Variable Price is
         not calculated  using the same formula used to calculate the Conversion
         Price in effect  immediately  prior to the time of such  issue or sale,
         the Company  shall  provide  written  notice  thereof via facsimile and
         overnight courier to each holder of Debentures  ("Variable  Notice") on
         the date of issuance of such  Convertible  Securities or Options.  If a
         holder of Debentures then  outstanding  provides  written notice to the
         Company via  facsimile  and  overnight  courier  (the  "Variable  Price
         Election  Notice")  within 10  Business  Days of  receiving  a Variable
         Notice that such holder desires to replace Fixed the  Conversion  Price
         then in effect  with the  Variable  Price  described  in such  Variable
         Notice,  then, from and after the date of the Company's  receipt of the
         Variable  Price  Election  Notice,  the  Fixed  Conversion  Price  will
         automatically  be replaced with the Variable  Price for the  Debentures
         held by such holder. In the event that a holder of Debentures  delivers
         a  Conversion  Notice  after  the  Company's  issuance  of  Convertible
         Securities  with a Variable  Price but before such holder's  receipt of
         the Company's  Variable Notice,  then such holder shall have the option
         by written notice to the Company to rescind such  Conversion  Notice or
         to have the  Conversion  Price be equal to such Variable  Price for the
         conversion  effected by such  Conversion  Notice.  As used herein,  (A)
         "Convertible  Securities"  means any stock or  securities  (other  than
         Options)  directly or indirectly  convertible  into or exchangeable for
         Common Stock and (B) "Options" means any rights, warrants or options to
         subscribe for or purchase Common Stock or Convertible Securities.

                                      -8-

<PAGE>

                  (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.

                  (viii)  Whenever  the  Fixed   Conversion  Price  is  adjusted
         pursuant to Section 4(c)(ii),  (iii) (iv), (v) or (vi) (for purposes of
         this Section 4(c)(viii), each an "adjustment"), the Company shall cause
         its Chief  Financial  Officer  to  prepare  and  execute a  certificate
         setting  forth,   in  reasonable   detail,   the  event  requiring  the
         adjustment,  the  amount of the  adjustment,  the  method by which such
         adjustment  was  calculated  (including a  description  of the basis on
         which the Board made any determination  hereunder),  and the Conversion
         Price after giving effect to such adjustment, and shall cause copies of
         such  certificate  to be delivered to each Holder  promptly  after each
         adjustment.  Any dispute  between  the  Company  and the  Holders  with
         respect to the matters set forth in such  certificate may at the option
         of the Holders be  submitted to one of the  national  accounting  firms
         currently known as the "big five" selected by the holders of a majority
         in  interest  of the  Aggregate  Principal  Amount of  Debentures  then
         outstanding,  provided  that the  Company  shall  have  ten days  after
         receipt of notice from such Holders of their  selection of such firm to
         object thereto,  in which case the holders of a majority in interest of
         the Aggregate  Principal  Amount of Debentures then  outstanding  shall
         select  another  such firm and the Company  shall have no such right of
         objection.  The firm  selected by the holders of a majority in interest
         of the Aggregate  Principal  Amount of Debentures  then  outstanding as
         provided in the  preceding  sentence  shall be  instructed to deliver a
         written  opinion as to such  matters  to the  Company  and the  Holders
         within thirty days after submission to it of such dispute. Such opinion
         shall be final and binding on the parties hereto. The fees and expenses
         of such accounting firm shall be paid by the Company.

                  (ix) In case the Company  after the Original  Issue Date shall
         do any of the following (each, a "Major  Transaction")  (a) consolidate
         with or merge into any other  person and the  Company  shall not be the
         continuing or surviving person of such  consolidation or merger, or (b)
         permit any other person to  consolidate  with or merge into the Company
         and the Company  shall be the  continuing  or surviving  person but, in
         connection with such  consolidation or merger, any capital stock of the
         Company shall be changed into or exchanged for  securities of any other
         person  or  cash  or  any  other  property,  or  (c)  transfer  all  or
         substantially  all of its properties or assets to any other person,  or
         (d) effect a capital  reorganization or reclassification of its capital
         stock,  the holders of the Debentures then  outstanding  shall have the
         right  thereafter  to convert such shares only 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 Major  Transaction,  and
         the  holders of the  Debentures  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 such  Debentures  could have
         been converted  immediately  prior to such Major Transaction would have
         been  entitled;  provided,  however,  that each  Holder  shall have the
         option to require the Company to redeem,  from funds legally  available
         therefor  at the  time of such  redemption,  such  Aggregate  Principal
         Amount of its  Debentures at a price equal to the  Aggregate  Principal
         Amount of Debentures to be

                                      -9-

<PAGE>

         redeemed,  plus accrued and unpaid interest thereon,  multiplied by the
         greater of (A) 125% or (B) the  applicable  Conversion  Ratio as of the
         date of such  redemption  multiplied  by the  greatest Per Share Market
         Value on any Trading Day during the period beginning on the date of the
         closing  or the date of the  announcement,  as the case may be,  of the
         Major  Transaction  triggering such redemption  right and ending on the
         date of payment in full by the Company of such  redemption  price.  The
         entire  redemption  price  shall be paid in  cash.  If the  Holder  has
         requested that the Company redeem  Debentures  pursuant to this Section
         and the Company fails for any reason to pay the  redemption  price,  as
         calculated pursuant to the immediately preceding sentence,  within five
         days after such notice is deemed  delivered  pursuant to the  preceding
         sentence,  the Company will pay interest on the  redemption  price at a
         rate of 15% per  annum,  in cash to such  Holder,  accruing  from  such
         seventh day until the redemption price and any accrued interest thereon
         is paid in full (which amount shall be paid as  liquidated  damages and
         not as a  penalty).  The  terms of any  such  Major  Transaction  shall
         include  such  terms  so as to  continue  to  give  to  the  holder  of
         Debentures  the right to receive the  securities,  cash or property set
         forth in this  Section  4(c)(ix)  upon  any  conversion  or  redemption
         following such Major Transaction.  This provision shall similarly apply
         to successive Major Transactions.

                  (x) If:

                           A.       the Company shall declare a dividend (or any
                                    other distribution) on its Common Stock; or

                           B.       the   Company   shall   declare   a  special
                                    nonrecurring   cash   dividend   on   or   a
                                    redemption of its Common Stock; or

                           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; or

                           D.       the  approval  of  any  stockholders  of the
                                    Company shall be required in connection with
                                    any Major Transaction; or

                           E.       the Company shall authorize the voluntary or
                                    involuntary   dissolution,   liquidation  or
                                    winding up of the affairs of the Company;

then the Company shall cause to be filed at each office or agency maintained for
the purpose of  conversion  of  Debentures,  and shall cause to be mailed to the
holders of  Debentures  at their last  addresses  as they shall  appear upon the
stock books of the Company,  at least 30 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 Common Stock of record to be entitled to such  dividend,
distributions,  redemption,  rights or warrants are to be

                                      -10-

<PAGE>

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 Common Stock of
record  shall  be  entitled  to  exchange  their  shares  of  Common  Stock  for
securities,  cash or other  property  deliverable  upon  such  reclassification,
consolidation, merger, sale, transfer or share exchange; provided, however, 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  Debentures  during the 30-day
period  commencing  the date of such notice to the  effective  date of the event
triggering such notice.

         (d) If at any time conditions  shall arise by reason of action taken by
the Company  which in the opinion of the Board of Directors  are not  adequately
covered by the other provisions  hereof and which might materially and adversely
affect the rights of the holders of Debentures  (different than or distinguished
from the effect  generally  on rights of  holders of any class of the  Company's
capital  stock) or if at any time any such  conditions  are expected to arise by
reason of any action  contemplated  by the  Company,  the  Company  shall mail a
written  notice  briefly  describing  the action  contemplated  and the material
adverse  effects of such  action on the rights of the holders of  Debentures  at
least 10  calendar  days  prior to the  effective  date of such  action,  and an
Independent  Appraiser  selected  by the  holders of majority in interest of the
Debentures shall give its opinion as to the adjustment, if any (not inconsistent
with the  standards  established  in this  Section 4), of the  Conversion  Price
(including,  if  necessary,  any  adjustment  as to the  securities  into  which
Debentures may thereafter be convertible) and any distribution which is or would
be  required  to  preserve  without  diluting  the  rights  of  the  holders  of
Debentures.  The  Board  of  Directors  shall  make the  adjustment  recommended
forthwith upon the receipt of such opinion or opinions or the taking of any such
action  contemplated,  as the  case  may  be;  provided,  however,  that no such
adjustment  of the  Conversion  Price  shall be made which in the opinion of the
Independent  Appraiser giving the aforesaid  opinion would result in an increase
of the Conversion Price to more than the Conversion Price then in effect.

         (e) The Company  covenants  that it will at all times  reserve and keep
available out of its authorized and unissued Common Stock solely for the purpose
of issuance upon  conversion of Debentures  free from  preemptive  rights or any
other actual  contingent  purchase  rights of persons  other than the holders of
Debentures, not less than 200% of such number of shares of Common Stock as shall
(subject to any additional requirements of the Company as to reservation of such
shares set forth in the Securities  Purchase Agreement) be issuable (taking into
account the  adjustments of Section 4(c)) upon the conversion of all outstanding
Debentures  (without  regard  to any  limitations  on  conversions  or  exercise
thereof). 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 freely tradable.

         (f) Upon a conversion  hereunder  the Company  shall not be required to
issue stock certificates  representing  fractions of shares of 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

                                      -11-

<PAGE>

Holder shall be entitled to receive,  in lieu of the final  fraction of a share,
one whole share of Common Stock.

         (g) The  issuance  of  certificates  for  shares  of  Common  Stock  on
conversion of Debentures 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.

         (h)  Debentures  converted  into Common  Stock  shall be  canceled  and
retired by the Company.

         (i)  Whenever  notice is  required  to be given  under this  Debenture,
unless otherwise provided herein,  such notice shall be given in accordance with
Section 5.3 of the Securities Purchase Agreement.

         (j) In the event a Holder  shall  elect to convert  any  Debentures  as
provided  herein,  the Company cannot refuse  conversion based on any claim that
such  Holder or any one  associated  or  affiliated  with such  Holder  has been
engaged in any  violation of law,  contract,  agreement or for any other reason,
unless,  an injunction from a court,  on notice,  restraining  and/or  adjoining
conversion of all or of said  Debentures  shall have been issued and the Company
posts a surety bond for the  benefit of such Holder in the amount  equal to 130%
of the Aggregate  Principal Amount of Debentures  sought to be converted,  which
bond shall remain in effect until the  completion of  arbitration/litigation  of
the  dispute  and the  proceeds  of which shall be payable to such Holder in the
event it obtains judgment.

         5.  Company  Exchange.  At any time or times  beginning  on the date of
receipt  of  Shareholder   Approval  (as  defined  in  the  Securities  Purchase
Agreement), the Company shall have the right, in its sole discretion, to require
that some or all of the outstanding Aggregate Principal Amount of the Debentures
be exchanged (a "Company Exchange") for shares of Series A Convertible Preferred
Stock of the Company (the  "Preferred  Stock") having an Aggregate  Stated Value
(as defined in the Certificate of Designation) equal to the Aggregate  Principal
Amount of the  Debentures  to be  exchanged;  provided  that the  Conditions  to
Exchange at the Company's  Election (as set forth below) are satisfied as of the
Company Exchange Date (as defined below).  The Company may exercise its right to
Company  Exchange  only by providing  each holder of Debentures  written  notice
("Notice of Company  Exchange")  at least 10 Business  Days but not more than 20
Business  Days  prior  to the  date of  consummation  of such  Company  Exchange
("Company  Exchange  Date").  If the Company elects to require exchange of some,
but  not  all,  of  the  Aggregate  Principal  Amount  of  the  Debentures  then
outstanding, the Company shall require exchange of the pro rata amount from each
holder of such Debentures based on the principal amount of Debentures  purchased
by  such  holder  relative  to the  aggregate  principal  amount  of  Debentures
purchased  on the  Original  Issue Date (such amount with respect to each holder
being  referred  to herein as its "Pro Rata  Exchange  Amount").  The  Notice of
Company  Exchange  shall  indicate  (x) the  Aggregate  Principal  Amount of the
Debentures  the Company has elected to exchange from all holders of  Debentures,
(y) the date selected by the Company for the Company Exchange Date, and (z) each
holder's  Pro  Rata  Exchange  Amount  of  the  Aggregate  Principal  Amount  of
Debentures  selected for  exchange.  If the Company has  exercised  its right of

                                      -12-

<PAGE>

Company  Exchange and the conditions of this Section 5, including the Conditions
to Exchange at the Company's Election,  have been satisfied,  then each holder's
Pro Rata  Exchange  Amount  of the  Aggregate  Principal  Amount  of  Debentures
selected for exchange  which remain  outstanding  on the Company  Exchange  Date
shall be exchanged as of the Company Exchange Date by delivery by the Company to
each such holder of  Debentures of one or more stock  certificates  representing
the  Aggregate  Stated Value of shares of  Preferred  Stock  issuable  upon such
Company  Exchange to such  holder.  If required  by Section  4(b)(iv),  all such
holders of the Aggregate  Principal  Amount of Debentures  being exchanged shall
thereupon, surrender all Debentures being exchanged on such date to the Company.
If the Company fails to deliver the stock certificates as required in the second
preceding  sentence on the Company  Exchange  Date with respect to the Aggregate
Principal Amount of Debentures selected for exchange,  then the Company Exchange
shall be null and void  with  respect  to such  Aggregate  Principal  Amount  of
Debentures  and the Holder  shall be  entitled  to all the rights of a holder of
outstanding  Debentures.  All Debentures that are required to be surrendered for
exchange in accordance  with the  provisions  of this Section 5 shall,  from and
after the Company Exchange Date, be deemed to have been retired and canceled and
the Aggregate  Principal Amount of Debentures  represented thereby exchanged for
an  equal   Aggregate   Stated  Value  of  Preferred  Stock  for  all  purposes,
notwithstanding  the failure of the Holder to surrender  such  Debentures  on or
prior to such date. "Conditions to Exchange at the Company's Election" means the
following  conditions:  (i) Shareholder Approval shall have been obtained by the
Company;  (ii) the  Certificate of Amendment and  Certificate of Designation (as
each is  defined  in the  Securities  Purchase  Agreement)  have been  filed and
accepted for filing with the  Secretary  of State of the State of Nevada;  (iii)
the Board of Directors of the Company shall have  authorized the issuance of the
Preferred Stock; (iv) during the period beginning on the Original Issue Date and
ending on and  including  the Company  Exchange  Date,  the  Company  shall have
delivered the applicable  Underlying Shares upon conversion of the Debentures to
the holders of the  Debentures  within three (3) Business Days of the applicable
Conversion  Date; (v) during the period  beginning on and including the Original
Issue Date and ending on and including the Company  Exchange  Date,  there shall
not have occurred (A) an Event (as defined in the Registration Rights Agreement)
or (B) an event that with the  passage of time and  without  being  cured  would
constitute  an Event;  (vi) during the period  beginning  on and  including  the
Original Issue Date and ending on and including the Company Exchange Date, there
shall not have  occurred  (A) an Event of  Default or (B) an event that with the
passage of time and without  being cured would  constitute  an Event of Default;
and (vii) during the period  beginning on the Original  Issue Date and ending on
and including the Company  Exchange Date,  there shall not have occurred a Major
Transaction which the Company has not publicly and accurately announced as being
consummated, terminated or abandoned. If the Company fails to timely deliver any
stock certificates representing the shares of Preferred Stock in accordance with
this Section 5, then the Company shall not be permitted to submit another Notice
of Company Exchange without the prior written consent of the holders of at least
two-thirds  (3/4) of the  Aggregate  Principal  Amount  of the  Debentures  then
outstanding.

         6. Events of Default.

         Each of the following  shall  constitute an event of default ("Event of
Default"), whatever the reason for such Event of Default and whether it shall be
voluntary or  involuntary  or be

                                      -13-

<PAGE>

effected by  operation  of law or pursuant to any judgment or order of any court
or any  order,  rule  or  regulation  of  any  administrative,  governmental  or
non-governmental body or otherwise howsoever:

         (a) the Company  shall  default in any payment of any amounts due under
the  Transaction   Documents  when  and  as  due  (whether  at  maturity,   upon
acceleration or otherwise); or

         (b) the  Company  shall  fail  duly to  perform  or  observe  any term,
covenant or agreement  contained in any of the  Debentures or in the  Securities
Purchase Agreement or in the Registration Rights Agreement for a period of seven
days after the date on which  written  notice of such  failure  shall first have
been given to the Company; or

         (c) (i) a final  judgment  shall be  entered by any court  against  the
Company for the payment of money which together with all other outstanding final
judgments  against the Company  exceeds  $150,000  in the  aggregate,  or (ii) a
warrant of attachment or execution or similar  process shall be issued or levied
against any of the Company's  property  which  exceeds in value  $150,000 in the
aggregate,  and if, within 30 days after the entry, issue or levy thereof,  such
judgment, warrant or process shall not have been paid or discharged; or

         (d) a court having jurisdiction in the premises shall enter a decree or
order for relief in respect of the Company in an involuntary  case or proceeding
under any applicable bankruptcy, insolvency, reorganization or other similar law
now or hereafter in effect,  or  appointing  a receiver,  liquidator,  assignee,
custodian, trustee, sequestrator (or similar official) of the Company or for any
substantial part of the property of it or ordering the winding-up or liquidation
of the  affairs of it and such  decree or order  shall  remain  unstayed  and in
effect for a period of 30 days; or

         (e) the Company shall commence a voluntary case or proceeding under any
applicable  bankruptcy,  insolvency,  reorganization or other similar law now or
hereafter in effect,  or shall consent to the entry of an order for relief in an
involuntary  case under any such law, or shall consent to the  appointment of or
taking  possession  by a receiver,  liquidator,  assignee,  trustee,  custodian,
sequestrator (or similar official) of the Company or for any substantial part of
its property, or shall make any general assignment for the benefit of creditors,
or shall admit in writing its  inability  to pay its debts as they become due or
shall take any corporate action in furtherance of any of the foregoing; or

         (f) an event of  default,  as defined in any  indenture  or  instrument
evidencing or under which the Company shall have  outstanding  indebtedness  for
borrowed  money in excess of $150,000,  inclusive of accrued  interest,  accrued
premium,  if  any,  or any  additional  amounts  payable,  shall  happen  and be
continuing  and such default  shall  involve the failure to pay the principal of
such  indebtedness  (or any  part  thereof),  when  due and  payable  after  the
expiration  of any  applicable  grace  period  with  respect  thereto,  or  such
indebtedness shall have been accelerated so that the same shall be or become due
and payable prior to the date on which the same would  otherwise have become due
and payable,  and failure to pay shall not have been

                                      -14-

<PAGE>

cured by the  Company  within 30 days  after such  failure or such  acceleration
shall not be rescinded or annulled  within 30 days after  notice  thereof  shall
have  first been given to the  Company;  provided  that if such event of default
under such indenture or instrument  shall be remedied or cured by the Company or
waived by the holders of such indebtedness,  then the Event of Default hereunder
by reason  thereof  shall be deemed  likewise to have been  thereupon  remedied,
cured or waived  without  further  action upon the part of any of the holders of
Debentures; or

         (g) trading in the Common Stock shall have been suspended for more than
ten Trading Days or the Common Stock is delisted  from any  principal  market or
exchange  (including,  but not limited to, the OTC  Bulletin  Board,  The Nasdaq
SmallCap  Market and the Nasdaq  National  Market) on which the Common  Stock is
then listed for trading; or

         (h) the Company  fails to timely  deliver the shares of Common Stock to
the Holder or a replacement  Debenture  representing any unconverted  portion of
this Debenture pursuant to this Debenture; or

         (i) the issuance by the Securities and Exchange  Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the  Registrable  Securities  (as  defined  in  the  Registration  Rights
Agreement) or the initiation of any proceedings for that purpose.

With the exception of an Event of Default specified in clauses (d) or (e) above,
upon the  occurrence  and  continuance  of an Event of  Default,  the Holder may
declare the Aggregate Principal Amount of and interest on the Debentures and all
other  amounts  owing under the  Transaction  Documents to be forthwith  due and
payable by giving  written notice  thereof to the Company  without  presentment,
demand,  protest or other notice of any kind, all of which are hereby  expressly
waived,  anything in the Transaction Documents to the contrary  notwithstanding.
Upon the occurrence and continuance of an Event of Default  specified in clauses
(d) or (e) above, such principal, interest and other amounts shall thereupon and
concurrently  therewith  become  automatically  due and  payable all without any
action by the Holder and without presentment, demand, protest or other notice of
any  kind,  all of which  are  expressly  waived,  anything  in the  Transaction
Documents to the contrary notwithstanding.

         Interest on overdue principal and interest (and other amounts,  if any)
shall  accrue  from the date on which such  principal  and  interest  (and other
amounts,  if any) were due and payable to the date such  principal  and interest
(and other amounts,  if any) are paid or duly provided for, at a rate of 15% per
annum (to the extent payment of such interest shall be legally enforceable).

         7. Definitions. For the purposes hereof, the following terms shall have
the following meanings:

         "Aggregate Principal Amount" means, with respect to the Debentures, the
sum of (a) the principal  amount  thereof,  plus (b) accrued but unpaid interest
thereon (whether or not earned or declared).

                                      -15-

<PAGE>

         "Common  Stock" means the common stock,  $.001 par value per share,  of
the Company  and stock of any other  class into which such shares may  hereafter
have been reclassified or changed.

         "Conversion  Ratio" means the number of shares of Common Stock issuable
upon conversion of each Debenture determined by the application of the following
formula  where "D"  equals the  accrued  and unpaid  interest  on the  Aggregate
Principal  Amount  of  Debentures  so  converted  (not  previously  added to the
Aggregate  Principal  Amount  pursuant to Section 2 hereof) as of the Conversion
Date:

                 Aggregate Principal Amount to be Converted + D
                 ----------------------------------------------
                                Conversion Price

         "Independent Appraiser" means a nationally recognized or major regional
investment  banking firm or firm of independent  certified public accountants of
recognized standing (which may be the firm that regularly examines the financial
statements  of the  Company)  that  is  regularly  engaged  in the  business  of
appraising  the capital  stock or assets of  corporations  or other  entities as
going  concerns,  and which is not  affiliated  with  either the  Company or any
Holder.

         "Original  Issue Date" shall mean the date of the first issuance of any
Debentures  regardless of the number of transfers of any  particular  Debentures
and  regardless  of the number of  certificates  which may be issued to evidence
such Debentures.

         "Per Share Market Value" means on any  particular  date (a) the closing
bid price  per share of the  Common  Stock on such date on The  Nasdaq  SmallCap
Market,  the Nasdaq National Market or other registered  national stock exchange
on which the  Common  Stock is then  listed or if there is no such price on such
date,  then the closing bid price on such  exchange or  quotation  system on the
date nearest  preceding such date, or (b) if the Common Stock is not listed then
on The Nasdaq  Small-Cap  Market,  the Nasdaq  National Market or any registered
national  stock  exchange,  the closing bid price for a share of Common Stock in
the over-the-counter  market (as reported by NASDAQ or in 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 Common Stock is not then  publicly  traded,  then the fair market value of a
share of Common Stock as determined by an Independent Appraiser selected in good
faith by the holders of a majority in interest of the shares of the  Debentures;
provided,  however, that the Company, after receipt of the determination by such
Independent Appraiser,  shall have the right to select an additional Independent
Appraiser, in which case, the fair market value shall be equal to the average of
the  determinations by each such Independent  Appraiser;  and provided,  further
that all  determinations  of the Per Share Market  Value shall be  appropriately
adjusted for any stock  dividends,  stock splits or other  similar  transactions
during such period. The determination

                                      -16-

<PAGE>

of fair market value by an  Independent  Appraiser  shall be based upon the fair
market value of the Company  determined  on a going  concern  basis as between a
willing buyer and a willing seller and taking into account all relevant  factors
determinative  of value,  and  shall be final and  binding  on all  parties.  In
determining   the  fair  market  value  of  any  shares  of  Common  Stock,   no
consideration shall be given to any restrictions on transfer of the Common Stock
imposed by agreement or by federal or state securities laws, or to the existence
or absence of, or any limitations on, voting rights.

         "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.

         "Registration   Rights   Agreement"  means  the   Registration   Rights
Agreement, dated as of the Original Issue Date, by and among the Company and the
original Holders.

         "Trading  Day" means (a) a day on which the  Common  Stock is traded on
the Nasdaq  National  Market,  The Nasdaq  SmallCap  Market or other  registered
national stock exchange on which the Common Stock has been listed, or (b) if the
Common Stock is not listed on the Nasdaq  National  Market,  The Nasdaq SmallCap
Market or any  registered  national  stock  exchange,  a day or which the Common
Stock is traded in the over-the-counter  market, as reported by the OTC Bulletin
Board, or (c) if the Common Stock is not quoted on the OTC Bulletin Board, a day
on which the Common Stock is 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, however, that in
the event that the Common Stock is not listed or quoted as set forth in (a), (b)
and (c) hereof, then Trading Day shall mean any day except Saturday,  Sunday and
any day which shall be a legal holiday or a day on which banking institutions in
the State of New York are  authorized  or  required  by law or other  government
action to close.

         "Underlying  Shares"  means the  number of shares of Common  Stock into
which the Debentures are convertible in accordance with the terms hereof and the
Securities Purchase Agreement.

         8. Purchase Rights. If at any time the Company grants,  issues or sells
any  Options,  Convertible  Securities  or rights to purchase  stock,  warrants,
securities  or other  property  pro rata to the  record  holders of any class of
Common Stock (the  "Purchase  Rights" ), then the holders of Debentures  will be
entitled to acquire,  upon the terms  applicable  to such Purchase  Rights,  the
aggregate  Purchase  Rights which such holder could have acquired if such holder
had held  the  number  of  shares  of  Common  Stock  acquirable  upon  complete
conversion of the  Debentures  (without  taking into account any  limitations or
restrictions on the  convertibility  of the Debentures)  immediately  before the
date on which a record is taken for the grant, issuance or sale of such Purchase
Rights,  or, if no such record is taken, the date as of which the record holders
of  Common  Stock  are to be  determined  for the  grant,  issue or sale of such
Purchase Rights.

                                      -17-
<PAGE>

         9. Taxes.  The Company shall pay any and all taxes  attributable to the
issuance and delivery of Common Stock or other securities upon conversion of the
Debentures.

         10. No  Impairment.  The  Company  shall not by any  action  including,
without limitation, amending the articles of incorporation or the by-laws of the
Company,  or through  any  reorganization,  transfer  of assets,  consolidation,
merger,  dissolution,  issue or sale of securities or any other action, avoid or
seek  to  avoid  the  observance  or  performance  of any of the  terms  of this
Debenture, but will at all times in good faith assist in the carrying out of all
such  terms  and in the  taking  of all  such  actions  as may be  necessary  or
appropriate to protect the rights of the Holder hereof against  dilution (to the
extent  specifically  provided  herein)  or  impairment.  Without  limiting  the
generality of the foregoing,  the Company will (i) not permit the par value,  if
any, of its Common Stock to exceed the then effective Conversion Price, (ii) not
amend or modify any provision of the articles of incorporation or by-laws of the
Company  in any  manner  that  would  adversely  affect  in any way the  powers,
preferences or relative  participating,  optional or other special rights of the
Common  Stock or which would  adversely  affect the rights of the Holders of the
Debentures,  (iii) take all such action as may be reasonably  necessary in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
shares of Common Stock,  free and clear of any liens,  claims,  encumbrances and
restrictions  (other  than  as  provided  herein)  upon  the  exercise  of  this
Debenture,  and (iv) use its best  efforts  to obtain  all such  authorizations,
exemptions  or consents  from any public  regulatory  body  having  jurisdiction
thereof as may be  reasonably  necessary  to enable the  Company to perform  its
obligations under this Debenture.

         11. Governing Law. The Debentures shall be governed by and construed in
accordance  with the laws of the State of New  York,  without  giving  effect to
principles of conflicts of law.

         12. Countersignature and Registration.  This Debenture shall not become
valid or obligatory  for any purpose until the  Debentures  shall have been duly
executed by the Company and such signature  attested to by an authorized Officer
thereof.

         13. Warranty of the Company.  The Company hereby certifies and warrants
that all acts,  conditions  and things  required to be done and performed and to
have happened  precedent to the creation and issuance of this Debenture,  and to
constitute  the same as legal,  valid and  binding  obligations  of the  Company
enforceable  in  accordance  with their terms,  have been done and performed and
have happened in due and strict compliance with all applicable laws.

         14. Descriptive Headings. The descriptive headings appearing herein are
for  convenience  of  reference  only and shall not  alter,  limit or define the
provisions hereof.

                                      -18-
<PAGE>

         IN WITNESS  WHEREOF,  the Company has caused this  Debenture to be duly
executed in its  corporate  name by the manual  signature  of a duly  authorized
signatory, as attested to by another duly authorized signatory of the Company.

Dated:  April 14, 2000

                                                     WORLD WIDE WIRELESS
                                                        COMMUNICATIONS, INC.

                                                     By:________________________
                                                        Name:
                                                        Title:

  ATTEST:

  By:__________________________________
     Name:
     Title:

                                      -19-

<PAGE>

                                    EXHIBIT 1

                                CONVERSION NOTICE

The undersigned hereby elects to have World Wide Wireless  Communications,  Inc.
(the  "Company")  convert the  Aggregate  Principal  Amount of 4.0%  Convertible
Debentures  due 2005 (the  "Debentures")  of the Company,  indicated  below into
shares of Common Stock, par value $.001 per share (the "Common  Stock"),  of the
Company as of the date specified below.

   Date of Conversion:   _______________________________________________________

   Aggregate Principal Amount of Debentures to be converted: ___________________

Please confirm the following information:

   Conversion Price: ___________________________________________________________

   Number of shares of Common Stock to be issued:_______________________________

Please issue the Common Stock into which the Debentures are being converted and,
if  applicable,  any check drawn on an account of the  Company in the  following
name and to the following address:

         Issue to:  ____________________________________________________________

                    ____________________________________________________________

                    ____________________________________________________________

         Facsimile Number:________________________________

         Authorization:___________________________________
                            By:
                            Title:

         Dated:___________________________________________

         Account Number (if electronic book entry transfer):____________________

         Transaction Code Number (if electronic book entry transfer):___________

<PAGE>

                                 ACKNOWLEDGMENT

         The  Company  hereby  acknowledges  this  Conversion  Notice and hereby
directs [TRANSFER AGENT] to issue the above indicated number of shares of Common
Stock in accordance  with the Transfer Agent  Instructions  dated April 14, 2000
from the Company and acknowledged and agreed to by [TRANSFER AGENT].

                                        WORLD WIDE WIRELESS COMMUNICATIONS, INC.

                                        By:_____________________________________
                                           Name:
                                           Title:THIS WARRANT AND THE SHARES OF COMMON STOCK  ISSUABLE UPON EXERCISE  HEREOF HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION 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.

                               WARRANT TO PURCHASE

                             SHARES OF COMMON STOCK

                                       OF

                    WORLD WIDE WIRELESS COMMUNICATIONS, INC.

                             Expires April 14, 2005

No. W-__                                                      New York, New York
                                                                  April 14, 2000

FOR VALUE  RECEIVED,  subject  to the  provisions  hereinafter  set  forth,  the
undersigned,  WORLD WIDE  WIRELESS  COMMUNICATIONS,  INC., a Nevada  corporation
(together with its successors and assigns, the "Issuer"), hereby certifies that

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

or its registered assigns is entitled to subscribe for and purchase,  during the
period specified in this Warrant, up to _______ shares (subject to adjustment as
hereinafter  provided) of the duly  authorized,  validly issued,  fully paid and
non-assessable  common  stock,  par value  $0.001 per share,  of the Issuer (the
"Common Stock"),  at an exercise price per share equal to the Warrant Price then
in effect, subject, however, to the provisions and upon the terms and conditions
hereinafter set forth.  Capitalized terms used in this Warrant and not otherwise
defined herein shall have the respective meanings specified in Section 7 hereof.

         1. Term.  The right to  subscribe  for and  purchase  shares of Warrant
Stock represented  hereby shall commence on the date of issuance of this Warrant
and shall  expire at 5:00  p.m.,  New York City  time,  on April 14,  2005 (such
period being the "Term"). Prior to the end of the Term, the Issuer will not take
any action which would terminate the Warrants.
<PAGE>

         2. Method of Exercise Payment;  Issuance of New Warrant;  Registration,
Transfer and Exchange.

         (a) Time of Exercise.  The purchase rights  represented by this Warrant
may be  exercised  in whole or in part at any time and from time to time  during
the Term.

         (b) Method of Exercise. The Holder hereof may exercise this Warrant, in
whole or in part,  by the  surrender  of this Warrant  (with the  exercise  form
attached hereto duly executed) at the principal office of the Issuer, and by the
payment  to the  Issuer  of an  amount of  consideration  therefor  equal to the
Warrant Price in effect on the date of such exercise multiplied by the number of
shares of  Warrant  Stock  with  respect  to which  this  Warrant  is then being
exercised,  payable at such Holder's  election (i) by certified or official bank
check,  (ii) if the Per Share Market Value is greater than the Warrant Price (at
the date of calculation as set forth below),  in lieu of exercising this Warrant
for cash, by receiving  shares equal to the value (as determined  below) of this
Warrant (or the portion  thereof being canceled) by surrender of this Warrant at
the  principal  office  of  the  Issuer  together  with  the  properly  endorsed
Subscription  Form annexed hereto and notice of such election in which event the
Issuer  shall  issue to the  Warrantholder  a number of  shares of Common  Stock
computed using the following formula:

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

         Where             X =      the  number of shares of Common  Stock to be
                                    issued to the Holder

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

                           A =      the Per Share  Market  Value of one share of
                                    the  Common  Stock  (at  the  date  of  such
                                    calculation)

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

or (iii) by a combination  of the foregoing  methods of payment  selected by the
Holder of this Warrant.  In any case where the  consideration  payable upon such
exercise is being paid in whole or in part pursuant to the  provisions of clause
(ii) of this  subsection  (b), such  exercise  shall be  accompanied  by written
notice from the Holder of this Warrant  specifying the manner of payment thereof
and containing a calculation  showing the number of shares of Warrant Stock with
respect to which rights are being  surrendered  thereunder and the net number of
shares to be issued after giving effect to such surrender.

         (c) Issuance of Stock Certificates. In the event of any exercise of the
rights  represented by this Warrant in accordance  with and subject to the terms
and  conditions  hereof,  (i)  certificates  for the shares of Warrant  Stock so
purchased  shall be dated the date of such  exercise

                                      -2-
<PAGE>

and delivered to the Holder hereof within a reasonable time, not exceeding three
Trading Days after such exercise,  and the Holder hereof shall be deemed for all
purposes to be the Holder of the shares of Warrant  Stock so purchased as of the
date of such exercise,  and (ii) unless this Warrant has expired,  a new Warrant
representing  the number of shares of Warrant  Stock,  if any,  with  respect to
which this Warrant shall not then have been  exercised  (less any amount thereof
which  shall have been  cancelled  in payment or partial  payment of the Warrant
Price as hereinabove  provided) shall also be issued to the Holder hereof at the
Issuer's expense within such time.

         (d)  Registration.   The  Warrants  shall  be  numbered  and  shall  be
registered in a Warrant register (the "Warrant  Register").  The Issuer shall be
entitled to treat the registered  holder of any Warrant on the Warrant  Register
(the  "Holder")  as the owner in fact  thereof for all purposes and shall not be
bound to recognize  any  equitable or other claim to or interest in such Warrant
on the part of any other person, and shall not be liable for any registration of
transfer of Warrants which are registered or are to be registered in the name of
a fiduciary or the nominee of a fiduciary  unless made with the actual knowledge
that a fiduciary or nominee is committing a breach of trust in  requesting  such
registration  of  transfer,  or with  such  knowledge  of such  facts  that  its
participation  therein  amounts to bad faith.  The Warrants  shall be registered
initially  in the name of  Holder as set  forth in the  first  sentence  of this
Warrant in such denominations as Holder may request in writing to the Issuer.

         (e) Transfer of Warrant.  The Warrants  will not be sold,  transferred,
assigned or hypothecated, in part or in whole (other than by will or pursuant to
the laws of  descent  and  distribution),  except to  registered  assigns of the
Holder and thereafter only upon delivery  thereof duly endorsed by the Holder or
by his duly  authorized  attorney or  representative,  or  accompanied by proper
evidence of  succession,  assignment  or authority to transfer.  In all cases of
transfer by an attorney,  the original power of attorney,  duly approved,  or an
official copy thereof,  duly certified,  shall be deposited with the Issuer.  In
case  of  transfer  by  executors,  administrators,  guardians  or  other  legal
representatives,  duly  authenticated  evidence  of  their  authority  shall  be
produced, and may be required to be deposited with the Issuer in its discretion.
Upon any  registration  of transfer,  the Issuer shall  deliver a new Warrant or
Warrants to the persons entitled  thereto.  The Warrants may be exchanged at the
option  of the  Holder  thereof  for  another  Warrant,  or other  Warrants,  of
different  denominations,  of like tenor and  representing  in the aggregate the
right to purchase a like number of shares of Common Stock upon  surrender to the
Issuer or its duly authorized agent.  Notwithstanding the foregoing,  the Issuer
shall have no obligation to cause Warrants to be transferred on its books to any
person if such transfer would violate the Securities Act.

         (f)      Compliance with Securities Laws.

                  (i)  The  Holder  of  this  Warrant,   by  acceptance  hereof,
         acknowledges  that this  Warrant and the shares of Warrant  Stock to be
         issued upon exercise  hereof are being acquired solely for the Holder's
         own  account  and  not as a  nominee  for  any  other  party,  and  for
         investment,  and that the  Holder  will not  offer,  sell or  otherwise
         dispose of this  Warrant  or any  shares of Warrant  Stock to be issued
         upon  exercise  hereof  except  pursuant

                                      -3-
<PAGE>

         to  an  effective   registration   statement,   or  an  exemption  from
         registration,  under  the  Securities  Act  and  any  applicable  state
         securities laws.

                  (ii) Except as provided in paragraph (iii) below, this Warrant
         and all certificates  representing  shares of Warrant Stock issued upon
         exercise  hereof  shall  be  stamped  or  imprinted  with a  legend  in
         substantially the following form:

                           THE  SECURITIES  REPRESENTED  HEREBY  HAVE  NOT  BEEN
                  REGISTERED  WITH THE  SECURITIES  AND EXCHANGE  COMMISSION  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.

                  (iii) The restrictions imposed by this subsection (g) upon the
         transfer  of this  Warrant  and  the  shares  of  Warrant  Stock  to be
         purchased upon exercise hereof shall terminate (A) when such securities
         shall have been  effectively  registered  under the Securities Act, (B)
         upon  the  Issuer's  receipt  of an  opinion  of  counsel,  in form and
         substance  reasonably  satisfactory  to the  Issuer,  addressed  to the
         Issuer to the effect that such  restrictions  are no longer required to
         ensure  compliance  with the  Securities  Act or (C) upon the  Issuer's
         receipt of other evidence  reasonably  satisfactory  to the Issuer that
         such  registration is not required.  Whenever such  restrictions  shall
         cease and terminate as to any such securities, the Holder thereof shall
         be  entitled  to receive  from the Issuer  (or its  transfer  agent and
         registrar),  without expense (other than applicable  transfer taxes, if
         any),  new Warrants  (or, in the case of shares of Warrant  Stock,  new
         stock  certificates)  of like tenor not bearing the applicable  legends
         required by paragraph  (ii) above  relating to the  Securities  Act and
         state securities laws.

         (g) Continuing Rights of Holder.  The Issuer will, at the time of or at
any time after each  exercise  of this  Warrant,  upon the request of the Holder
hereof or of any shares of Warrant Stock issued upon such exercise,  acknowledge
in writing the extent,  if any, of its  continuing  obligation to afford to such
Holder all rights to which such Holder shall  continue to be entitled after such
exercise in accordance with the terms of this Warrant, provided that if any such
Holder  shall fail to make any such  request,  the failure  shall not affect the
continuing obligation of the Issuer to afford such rights to such Holder.

         3. Stock Fully Paid; Reservation and Listing of Shares; Covenants.

         (a) Stock Fully Paid. The Issuer  represents,  warrants,  covenants and
agrees that all shares of Warrant Stock which may be issued upon the exercise of
this Warrant or otherwise  hereunder  will, upon issuance,  be duly  authorized,
validly issued, fully paid and non-assessable and free from all taxes, liens and
charges  created by or through Issuer.  The Issuer further

                                      -4-
<PAGE>

covenants  and agrees that during the period  within  which this  Warrant may be
exercised,  the Issuer will at all times have  authorized  and  reserved for the
purpose of the issue upon exercise of this Warrant a sufficient number of shares
of Common Stock to provide for the exercise of this Warrant.

         (b) Payment of Taxes. The Issuer will pay all documentary  stamp taxes,
if any, attributable to the issuance of Warrant Stock;  provided,  however, that
the Issuer shall not be required to pay any tax or taxes which may be payable in
respect of any  transfer  involved in the issue or delivery of any  certificates
for Warrant Stock in a name other than that of the Holder of Warrants in respect
of which such Warrant Stock is issued.

         (c) Reservation.  If any shares of Common Stock required to be reserved
for issuance  upon exercise of this Warrant or as otherwise  provided  hereunder
require registration or qualification with any governmental  authority under any
federal or state law before  such  shares may be so issued,  the Issuer  will in
good faith use its best efforts as  expeditiously  as possible at its expense to
cause such shares to be duly registered or qualified. The transfer agent for the
Common Stock (the "Transfer  Agent"),  and every  subsequent  transfer agent, if
any, for the Warrant Stock will be  irrevocably  authorized  and directed at all
times  until  the end of the Term to  reserve  such  number  of  authorized  and
unissued  shares of Common  Stock as shall be  required  for such  purpose.  The
Issuer will keep a copy of this  Agreement on file with the  Transfer  Agent and
with every  subsequent  transfer agent for of the Issuer's  securities  issuable
upon the exercise of the Warrants.  The Issuer will supply the Transfer Agent or
any subsequent  transfer agent with duly executed  certificates for such purpose
and will  itself  provide  or  otherwise  make  available  any cash which may be
distributable  as  provided  in  Section  6  of  this  Agreement.  All  Warrants
surrendered in the exercise of the rights thereby  evidenced  shall be canceled,
and such canceled Warrants shall constitute sufficient evidence of the number of
Shares that have been issued upon the  exercise of such  Warrants.  No shares of
Common Stock shall be subject to reservation in respect of unexercised  Warrants
subsequent to the end of the Term. If the Issuer shall list any shares of Common
Stock on any  securities  exchange  or  market  it will,  at its  expense,  list
thereon,  maintain and increase when necessary  such listing,  of, all shares of
Warrant  Stock from time to time  issued  upon  exercise  of this  Warrant or as
otherwise  provided  hereunder,   and,  to  the  extent  permissible  under  the
applicable securities exchange rules, all unissued shares of Warrant Stock which
are at any time issuable hereunder,  so long as any shares of Common Stock shall
be so  listed.  The  Issuer  will also so list on each  securities  exchange  or
market, and will maintain such listing of, any other securities which the Holder
of this  Warrant  shall be entitled to receive upon the exercise of this Warrant
if at the time  any  securities  of the  same  class  shall  be  listed  on such
securities exchange or market by the Issuer.

         (d) Covenants.  The Issuer shall not by any action  including,  without
limitation,  amending the  certificate  of  incorporation  or the by-laws of the
Issuer,  or through  any  reorganization,  transfer  of  assets,  consolidation,
merger,  dissolution,  issue or sale of securities or any other action, avoid or
seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such  actions as may be  necessary  or  appropriate  to
protect  the  rights  of the  Holder  hereof  against  dilution  (to the  extent
specifically provided herein) or impairment.  Without

                                      -5-
<PAGE>

limiting the generality of the foregoing, the Issuer will (i) not permit the par
value,  if any, of its Common Stock to exceed the then effective  Warrant Price,
(ii) not amend or modify any provision of the  certificate of  incorporation  or
by-laws of the Issuer in any manner that would  adversely  affect in any way the
powers, preferences or relative participating,  optional or other special rights
of the Common Stock or which would adversely affect the rights of the Holders of
the Warrants, (iii) take all such action as may be reasonably necessary in order
that the Issuer may  validly  and  legally  issue  fully paid and  nonassessable
shares of Common Stock,  free and clear of any liens,  claims,  encumbrances and
restrictions  (other than as provided herein) upon the exercise of this Warrant,
and (iv) use its best efforts to obtain all such  authorizations,  exemptions or
consents from any public regulatory body having  jurisdiction  thereof as may be
reasonably  necessary to enable the Issuer to perform its obligations under this
Warrant.

         (e) Loss,  Theft,  Destruction  of  Warrants.  Upon receipt of evidence
satisfactory to the Issuer of the ownership of and the loss, theft,  destruction
or  mutilation  of any  Warrant  and,  in the  case of any such  loss,  theft or
destruction,  upon receipt of indemnity or security  satisfactory  to the Issuer
or, in the case of any such mutilation,  upon surrender and cancellation of such
Warrant,  the  Issuer  will  make and  deliver,  in lieu of such  lost,  stolen,
destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same number of shares of Common Stock.

         (f) Rights and Obligations  under the  Registration  Rights  Agreement.
This  Warrant and the Warrant  Stock are entitled to the benefits and subject to
the terms of the  Registration  Rights  Agreement dated as of even date herewith
between the Issuer and the Holders  listed on the  signature  pages  thereof (as
amended from time to time,  the  "Registration  Rights  Agreement").  The Issuer
shall keep or cause to be kept a copy of the Registration Rights Agreement,  and
any amendments thereto, at its chief executive office and shall furnish, without
charge, copies thereof to the Holder upon request.

         4. Adjustment of Warrant Price and Warrant Share Number. The number and
kind of Securities purchasable upon the exercise of this Warrant and the Warrant
Price shall be subject to  adjustment  from time to time upon the  happening  of
certain events as follows:

         (a) Recapitalization,  Reorganization, Reclassification, Consolidation,
         Merger or Sale.
             (i) In case the Issuer after the  Original  Issue Date shall do any
         of the following (each, a "Triggering  Event"): (a) consolidate with or
         merge into any other Person and the Issuer shall not be the  continuing
         or surviving corporation of such consolidation or merger, or (b) permit
         any other Person to  consolidate  with or merge into the Issuer and the
         Issuer shall be the  continuing or surviving  Person but, in connection
         with such  consolidation  or merger,  any  Capital  Stock of the Issuer
         shall be changed into or exchanged  for  Securities of any other Person
         or cash or any other property, or (c) transfer all or substantially all
         of its  properties  or  assets  to any other  Person,  or (d)  effect a
         capital  reorganization or reclassification of its Capital Stock, then,
         and in the case of each such Triggering  Event,  proper provision shall
         be made so  that,  upon  the  basis  and the  terms  and in the  manner
         provided in this Warrant,  the Holder of this Warrant shall be entitled
         upon the  exercise  hereof at any time after the  consummation  of such
         Triggering  Event, to

                                      -6-
<PAGE>

         the extent  this  Warrant  is not  exercised  prior to such  Triggering
         Event,  or is redeemed in connection  with such  Triggering  Event,  to
         receive at the Warrant Price in effect at the time immediately prior to
         the  consummation of such Triggering  Event in lieu of the Common Stock
         issuable upon such  exercise of this Warrant  prior to such  Triggering
         Event,  the  Securities,  cash and  property to which such Holder would
         have been entitled upon the  consummation of such  Triggering  Event if
         such  Holder had  exercised  the  rights  represented  by this  Warrant
         immediately  prior  thereto,   subject  to  adjustments  and  increases
         (subsequent to such corporate  action) as nearly equivalent as possible
         to the adjustments provided for in Section 4 hereof.

                  (ii) Notwithstanding anything contained in this Warrant to the
         contrary, the Issuer will not effect any Triggering Event unless, prior
         to the consummation  thereof, each Person (other than the Issuer) which
         may be required to deliver any  Securities,  cash or property  upon the
         exercise of this Warrant as provided  herein shall  assume,  by written
         instrument delivered to, and reasonably  satisfactory to, the Holder of
         this Warrant, (A) the obligations of the Issuer under this Warrant (and
         if the Issuer shall survive the consummation of such Triggering  Event,
         such  assumption  shall be in  addition  to, and shall not  release the
         Issuer  from,  any  continuing  obligations  of the  Issuer  under this
         Warrant) and (B) the  obligation  to deliver to such Holder such shares
         of  Securities,  cash or property as, in accordance  with the foregoing
         provisions  of this  subsection  (a),  such Holder shall be entitled to
         receive,  and such Person shall have similarly delivered to such Holder
         an  opinion  of  counsel  for  such  Person,  which  counsel  shall  be
         reasonably satisfactory to such Holder, stating that this Warrant shall
         thereafter  continue  in full  force and  effect  and the terms  hereof
         (including,   without  limitation,   all  of  the  provisions  of  this
         subsection (a)) shall be applicable to the Securities, cash or property
         which such Person may be required to deliver  upon any exercise of this
         Warrant or the exercise of any rights pursuant hereto.

         (b)  Subdivision or Combination of Shares.  If the Issuer,  at any time
while this  Warrant is  outstanding,  shall  subdivide  or combine any shares of
Common Stock,  (i) in case of subdivision of shares,  the Warrant Price shall be
proportionately reduced (as at the effective date of such subdivision or, if the
Issuer  shall take a record of Holders of its Common Stock for the purpose of so
subdividing,  as at the applicable record date, whichever is earlier) to reflect
the  increase in the total  number of shares of Common  Stock  outstanding  as a
result of such subdivision,  or (ii) in the case of a combination of shares, the
Warrant Price shall be  proportionately  increased (as at the effective  date of
such  combination or, if the Issuer shall take a record of Holders of its Common
Stock  for the  purpose  of so  combining,  as at the  applicable  record  date,
whichever is earlier) to reflect the  reduction in the total number of shares of
Common Stock outstanding as a result of such combination.

         (c) Certain  Dividends and  Distributions.  If the Issuer,  at any time
while this Warrant is outstanding, shall:

                  (i)  Stock  Dividends.  Pay a  dividend  in, or make any other
         distribution to its stockholders (without  consideration  therefor) of,
         shares of Common Stock, the Warrant

                                      -7-
<PAGE>

         Price shall be adjusted,  as at the date the Issuer shall take a record
         of the  Holders  of the  Issuer's  Capital  Stock  for the  purpose  of
         receiving such dividend or other  distribution (or if no such record is
         taken, as at the date of such payment or other  distribution),  to that
         price determined by multiplying the Warrant Price in effect immediately
         prior  to  such  record  date  (or if no such  record  is  taken,  then
         immediately prior to such payment or other distribution), by a fraction
         (1) the  numerator  of which  shall be the  total  number  of shares of
         Common  Stock  outstanding   immediately  prior  to  such  dividend  or
         distribution,  and (2) the  denominator  of which  shall  be the  total
         number of shares of Common  Stock  outstanding  immediately  after such
         dividend or  distribution  (plus in the event that the Issuer paid cash
         for fractional shares, the number of additional shares which would have
         been outstanding had the Issuer issued  fractional shares in connection
         with said dividends); or

                  (ii)  Other  Dividends.   Pay  a  dividend  on,  or  make  any
         distribution of its assets upon or with respect to (including,  but not
         limited to, a distribution of its property as a dividend in liquidation
         or  partial  liquidation  or by way of return of  capital),  the Common
         Stock (other than as described in clause (i) of this  subsection  (c)),
         or in the  event  that the  Issuer  shall  offer  options  or rights to
         subscribe  for  shares  of Common  Stock,  or issue  any  Common  Stock
         Equivalents,  to all of its holders of Common Stock, then on the record
         date for such  payment,  distribution  or offer or, in the absence of a
         record date, on the date of such payment,  distribution  or offer,  the
         Holder  shall  receive  what the  Holder  would  have  received  had it
         exercised this Warrant in full immediately  prior to the record date of
         such  payment,  distribution  or offer or, in the  absence  of a record
         date,  immediately  prior to the date of such payment,  distribution or
         offer.

         (d) Issuance of Additional  Shares of Common Stock.  If the Issuer,  at
any time while this Warrant is outstanding but prior to thirty (30) months after
the date hereof,  shall issue any Additional  Shares of Common Stock  (otherwise
than as provided in the  foregoing  subsections  (a) through (c) of this Section
4), at a price per share less than the Warrant Price then in effect or less than
the Per Share  Market  Value then in effect or without  consideration,  then the
Warrant Price upon each such issuance  shall be adjusted to that price  (rounded
to the nearest cent)  determined by multiplying the Warrant Price then in effect
by a fraction:

                  (i) the  numerator  of which  shall be equal to the sum of (A)
         the number of shares of Common Stock  outstanding  immediately prior to
         the  issuance of such  Additional  Shares of Common  Stock plus (B) the
         number of shares of Common Stock  (rounded to the nearest  whole share)
         which  the  aggregate  consideration  for  the  total  number  of  such
         Additional  Shares of Common Stock so issued would  purchase at a price
         per share  equal to the greater of the Per Share  Market  Value then in
         effect and the Warrant Price then in effect, and

                  (ii) the  denominator of which shall be equal to the number of
         shares of Common Stock  outstanding  immediately  after the issuance of
         such Additional Shares of Common Stock.

                                      -8-
<PAGE>

The  provisions  of  this  subsection  (d)  shall  not  apply  under  any of the
circumstances for which an adjustment is provided in subsections (a), (b) or (c)
of this Section 4. No  adjustment  of the Warrant Price shall be made under this
subsection (d) upon the issuance of any Additional  Shares of Common Stock which
are issued pursuant to any Common Stock  Equivalent if upon the issuance of such
Common Stock  Equivalent  (x) any  adjustment  shall have been made  pursuant to
subsection (e) of this Section 4 or (y) no adjustment  was required  pursuant to
subsection  (e) of this Section 4. No  adjustment  of the Warrant Price shall be
made under this  subsection  (d) in an amount less than $.01 per share,  but any
such lesser  adjustment  shall be carried  forward and shall be made at the time
and together with the next  subsequent  adjustment,  if any, which together with
any  adjustments  so  carried  forward  shall  amount to $.01 per share or more,
provided  that  upon any  adjustment  of the  Warrant  Price as a result  of any
dividend or  distribution  payable in Common Stock or Convertible  Securities or
the reclassification,  subdivision or combination of Common Stock into a greater
or smaller  number of shares,  the  foregoing  figure of $.01 per share (or such
figure as last  adjusted)  shall be adjusted (to the nearest  one-half  cent) in
proportion to the adjustment in the Warrant Price.

         (e) Issuance of Common Stock  Equivalents.  If the Issuer,  at any time
while this Warrant is outstanding but prior to thirty (30) months after the date
hereof,  shall  issue any Common  Stock  Equivalent  and the price per share for
which Additional Shares of Common Stock may be issuable  thereafter  pursuant to
such Common Stock Equivalent shall be less than the Warrant Price then in effect
or less than the Per Share  Market  Value then in effect,  or if, after any such
issuance of Common Stock  Equivalents,  the price per share for which Additional
Shares of Common Stock may be issuable  thereafter  is amended or adjusted,  and
such price as so amended  shall be less than the Warrant  Price or less than the
Per Share Market Value in effect at the time of such amendment, then the Warrant
Price upon each such issuance or amendment  shall be adjusted as provided in the
first  sentence of  subsection  (d) of this  Section 4 on the basis that (1) the
maximum  number of Additional  Shares of Common Stock  issuable  pursuant to all
such Common Stock  Equivalents  shall be deemed to have been issued  (whether or
not such Common Stock Equivalents are actually then exercisable,  convertible or
exchangeable in whole or in part) as of the earlier of (A) the date on which the
Issuer  shall enter into a firm  contract  for the issuance of such Common Stock
Equivalent,  or (B) the date of actual issuance of such Common Stock Equivalent,
and (2) the aggregate consideration for such maximum number of Additional Shares
of Common  Stock  shall be deemed to be the  minimum  consideration  received or
receivable  by the Issuer for the issuance of such  Additional  Shares of Common
Stock  pursuant to such Common Stock  Equivalent.  No  adjustment of the Warrant
Price  shall  be made  under  this  subsection  (e)  upon  the  issuance  of any
Convertible Security which is issued pursuant to the exercise of any warrants or
other  subscription  or  purchase  rights  therefor,  if  any  adjustment  shall
previously  have been made in the Warrant Price then in effect upon the issuance
of such  warrants  or  other  rights  pursuant  to this  subsection  (e).  If no
adjustment  is required  under this  subsection  (e) upon issuance of any Common
Stock  Equivalent or once an adjustment is made under this  subsection (e) based
upon the Per Share  Market  Value in effect on the date of such  adjustment,  no
further  adjustment  shall be made under this subsection (e) based solely upon a
change in the Per Share Market Value after such date.

                                      -9-
<PAGE>

         (f) Purchase of Common  Stock by the Issuer.  If the Issuer at any time
while this Warrant is outstanding but prior to thirty (30) months after the date
hereof  shall,  directly  or  indirectly  through  a  Subsidiary  or  otherwise,
purchase,  redeem or otherwise acquire any shares of Common Stock at a price per
share  greater than the Per Share Market Value then in effect,  then the Warrant
Price upon each such purchase,  redemption or  acquisition  shall be adjusted to
that price  determined by  multiplying  such Warrant Price by a fraction (i) the
numerator  of which  shall be the number of shares of Common  Stock  outstanding
immediately  prior to such purchase,  redemption or acquisition minus the number
of shares of Common Stock which the aggregate consideration for the total number
of such shares of Common Stock so purchased, redeemed or acquired would purchase
at the Per Share Market Value;  and (ii) the  denominator  of which shall be the
number of shares of Common Stock  outstanding  immediately  after such purchase,
redemption or acquisition.  For the purposes of this subsection (f), the date as
of which the Per Share  Market  Value shall be computed  shall be the earlier of
(x) the date on which  the  Issuer  shall  enter  into a firm  contract  for the
purchase,  redemption or  acquisition  of such Common Stock,  or (y) the date of
actual  purchase,  redemption  or  acquisition  of such  Common  Stock.  For the
purposes of this  subsection  (f), a purchase,  redemption or  acquisition  of a
Common  Stock  Equivalent  shall be deemed to be a  purchase  of the  underlying
Common Stock, and the computation  herein required shall be made on the basis of
the full exercise, conversion or exchange of such Common Stock Equivalent on the
date as of which such computation is required hereby to be made,  whether or not
such  Common  Stock   Equivalent  is  actually   exercisable,   convertible   or
exchangeable on such date.

         (g) Other  Provisions  Applicable to Adjustments  Under this Section 4.
The following provisions shall be applicable to the making of adjustments in the
Warrant Price hereinbefore provided in Section 4:

                  (i) Computation of Consideration.  The consideration  received
         by the Issuer shall be deemed to be the  following:  to the extent that
         any Additional  Shares of Common Stock or any Common Stock  Equivalents
         shall be issued for a cash consideration, the consideration received by
         the Issuer  therefor,  or if such Additional  Shares of Common Stock or
         Common Stock  Equivalents  are offered by the Issuer for  subscription,
         the subscription  price, or, if such Additional  Shares of Common Stock
         or Common Stock  Equivalents  are sold to  underwriters  or dealers for
         public offering  without a subscription  offering,  the public offering
         price,  in any such case  excluding any amounts paid or receivable  for
         accrued  interest or accrued  dividends  and without  deduction  of any
         compensation,  discounts,  commissions, or expenses paid or incurred by
         the  Issuer  for or in  connection  with the  underwriting  thereof  or
         otherwise in connection with the issue thereof; to the extent that such
         issuance shall be for a consideration  other than cash, then, except as
         herein  otherwise  expressly  provided,  the fair market  value of such
         consideration at the, time of such issuance as determined in good faith
         by the Board.  The  consideration  for any Additional  Shares of Common
         Stock issuable  pursuant to any Common Stock  Equivalents  shall be the
         consideration  received  by the Issuer for issuing  such  Common  Stock
         Equivalents,  plus the additional  consideration  payable to the Issuer
         upon  the  exercise,  conversion  or  exchange  of  such  Common  Stock
         Equivalents.  In case of the  issuance  at any  time of any  Additional
         Shares of Common  Stock or  Common  Stock

                                      -10-
<PAGE>

         Equivalents in payment or  satisfaction  of any dividend upon any class
         of Capital  Stock of the Issuer  other than  Common  Stock,  the Issuer
         shall be deemed to have received for such  Additional  Shares of Common
         Stock or Common Stock  Equivalents a consideration  equal to the amount
         of such  dividend  so paid  or  satisfied.  In any  case in  which  the
         consideration  to be  received  or paid shall be other  than cash,  the
         Board shall notify the Holder of this Warrant of its  determination  of
         the  fair  market  value of such  consideration  prior  to  payment  or
         accepting receipt thereof. If, within thirty days after receipt of said
         notice, the Majority Holders shall notify the Board in writing of their
         objection to such  determination,  a  determination  of the fair market
         value of such consideration  shall be made by an Independent  Appraiser
         selected by the Majority  Holders with the approval of the Board (which
         approval shall not be unreasonably  withheld),  whose fees and expenses
         shall be paid by the Issuer.

                  (ii)  Readjustment  of  Warrant  Price.  Prior to thirty  (30)
         months after the date hereof and upon the  expiration or termination of
         the right to convert,  exchange or exercise any Common Stock Equivalent
         the issuance of which effected an adjustment in the Warrant  Price,  if
         such Common Stock Equivalent  shall not have been converted,  exercised
         or  exchanged  in its  entirety,  the number of shares of Common  Stock
         deemed to be  issued  and  outstanding  by reason of the fact that they
         were issuable upon conversion,  exchange or exercise of any such Common
         Stock  Equivalent  shall no longer be computed as set forth above,  and
         the Warrant Price shall  forthwith be readjusted  and thereafter be the
         price which it would have been (but reflecting any other adjustments in
         the Warrant  Price made  pursuant to the  provisions  of this Section 4
         after the issuance of such Common Stock  Equivalent) had the adjustment
         of the Warrant Price been made in accordance  with the issuance or sale
         of the number of Additional Shares of Common Stock actually issued upon
         conversion,  exchange or issuance of such Common Stock  Equivalent  and
         thereupon only the number of Additional Shares of Common Stock actually
         so  issued   shall  be  deemed  to  have  been   issued  and  only  the
         consideration  actually  received by the Issuer  (computed as in clause
         (i) of this  subsection  (g)) shall be deemed to have been  received by
         the Issuer.

                  (iii) Outstanding Common Stock. The number of shares of Common
         Stock at any time outstanding  shall (A) not include any shares thereof
         then directly or indirectly  owned or held by or for the account of the
         Issuer or any of its  Subsidiaries,  and (B) be deemed to  include  all
         shares of Common  Stock then  issuable  upon  conversion,  exercise  or
         exchange of any then outstanding  Common Stock Equivalents or any other
         evidences of indebtedness,  shares of Capital Stock or other Securities
         which are or may be at any time  convertible  into or exchangeable  for
         shares of Common Stock or Other Common Stock.

         (h) Other Action  Affecting  Common  Stock.  In case after the Original
Issue Date the Issuer shall take any action  affecting its Common  Stock,  other
than an action described in any of the foregoing  subsections (a) through (g) of
this  Section 4,  inclusive,  and the failure to make any  adjustment  would not
fairly  protect the purchase  rights  represented  by this Warrant in accordance
with the  essential  intent and  principle  of this  Section 4, then the Warrant
Price shall be adjusted

                                      -11-
<PAGE>

in such manner and at such time as the Board may in good faith  determine  to be
equitable in the circumstances.

         (i)  Adjustment of Warrant Share  Number.  Upon each  adjustment in the
Warrant Price pursuant to any of the foregoing provisions of this Section 4, the
Warrant Share Number shall be adjusted,  to the nearest one hundredth of a whole
share,  to  the  product  obtained  by  multiplying  the  Warrant  Share  Number
immediately  prior to such  adjustment in the Warrant  Price by a fraction,  the
numerator of which shall be the Warrant Price  immediately  before giving effect
to such  adjustment  and the  denominator  of which shall be the  Warrant  Price
immediately  after giving effect to such  adjustment.  If the Issuer shall be in
default  under any  provision  contained  in  Section 3 of this  Warrant so that
shares  issued at the Warrant Price  adjusted in accordance  with this Section 4
would not be validly issued, the adjustment of the Warrant Share Number provided
for in the foregoing  sentence shall  nonetheless be made and the Holder of this
Warrant  shall be  entitled  to purchase  such  greater  number of shares at the
lowest price at which such shares may then be validly  issued  under  applicable
law. Such exercise  shall not  constitute a waiver of any claim arising  against
the Issuer by reason of its default under Section 3 of this Warrant.

         (j) Form of Warrant  after  Adjustments.  The form of this Warrant need
not be changed because of any adjustments in the Warrant Price or the number and
kind of Securities purchasable upon the exercise of this Warrant.

         5. Notice of  Adjustments.  Whenever the Warrant Price or Warrant Share
Number  shall be adjusted  pursuant  to Section 4 hereof  (for  purposes of this
Section 5, each an  "adjustment"),  the Issuer  shall cause its Chief  Financial
Officer to prepare  and  execute a  certificate  setting  forth,  in  reasonable
detail,  the event requiring the adjustment,  the amount of the adjustment,  the
method by which such  adjustment was calculated  (including a description of the
basis on which the Board  made any  determination  hereunder),  and the  Warrant
Price and Warrant Share Number after giving effect to such adjustment, and shall
cause copies of such  certificate  to be delivered to the Holder of this Warrant
promptly after each adjustment. Any dispute between the Issuer and the Holder of
this Warrant with  respect to the matters set forth in such  certificate  may at
the option of the Holder of this  Warrant be  submitted  to one of the  national
accounting  firms  currently  known as the "big five"  selected  by the  Holder,
provided  that the Issuer shall have ten days after  receipt of notice from such
Holder  of its  selection  of such firm to object  thereto,  in which  case such
Holder shall select another such firm and the Issuer shall have no such right of
objection.  The firm  selected by the Holder of this  Warrant as provided in the
preceding  sentence shall be instructed to deliver a written  opinion as to such
matters to the Issuer and such Holder within thirty days after  submission to it
of such dispute.  Such opinion shall be final and binding on the parties hereto.
The fees and expenses of such accounting firm shall be paid by the Issuer.

         6.  Fractional  Shares.  No fractional  shares of Warrant Stock will be
issued in connection  with and exercise  hereof,  but in lieu of such fractional
shares,  the Issuer  shall make a cash payment  therefor  equal in amount to the
product of the applicable fraction multiplied by the Per Share Market Value then
in effect.

                                      -12-
<PAGE>

         7. Definitions.  For the purposes of this Warrant,  the following terms
have the following meanings:

                  "Additional Shares of Common Stock" means all shares of Common
         Stock  issued by the Issuer  after the  Original  Issue  Date,  and all
         shares of Other Common, if any, issued by the Issuer after the Original
         Issue  Date,  except  (i)  Warrant  Stock and (ii) any shares of Common
         Stock issuable upon conversion of the Debentures or Preferred Stock.

                  "Board" means the Board of Directors of the Issuer.

                  "Capital  Stock"  means and  includes  (i) any and all shares,
         interests,  participations  or other  equivalents  of or  interests  in
         (however designated)  corporate stock,  including,  without limitation,
         shares of preferred or preference stock, (ii) all partnership interests
         (whether  general or  limited)  in any Person  which is a  partnership,
         (iii) all membership  interests or limited  liability company interests
         in any  limited  liability  company,  and (iv) all equity or  ownership
         interests in any Person of any other type.

                  "Commission" means the Securities and Exchange Commission.

                  "Common  Stock" means the Common Stock,  $0.001 par value,  of
         the  Issuer  and any other  Capital  Stock  into  which  such stock may
         hereafter be changed.

                  "Common Stock  Equivalent"  means any Convertible  Security or
         warrant,  option  or  other  right to  subscribe  for or  purchase  any
         Additional  Shares of Common Stock or any  Convertible  Security (other
         than a warrant or stock option  issued  pursuant to any stock or option
         or similar  equity-based  compensation  plan for  employees,  officers,
         directors or consultants.

                  "Convertible  Securities"  means  evidences  of  indebtedness,
         shares of Capital Stock or other  Securities which are or may be at any
         time convertible  into or exchangeable for Additional  Shares of Common
         Stock.  The term  "Convertible  Security"  means one of the Convertible
         Securities.

                  "Debenture"  means the  Issuer's  Convertible  Debentures  due
         2005.

                  "Governmental Authority" means any governmental, regulatory or
         self-regulatory   entity,   department,   body,  official,   authority,
         commission, board, agency or instrumentality, whether federal, state or
         local, and whether domestic or foreign.

                  "Holders" mean the Persons who shall from time to time own any
         Warrant. The term "Holder" means one of the Holders.

                  "Independent Appraiser" means a nationally recognized or major
         regional  investment  banking  firm or firm  of  independent  certified
         public  accountants of

                                      -13-
<PAGE>

         recognized  standing (which may be the firm that regularly examines the
         financial  statements  of the Issuer) that is regularly  engaged in the
         business of appraising the Capital Stock or assets of  corporations  or
         other  entities as going  concerns,  and which is not  affiliated  with
         either the Issuer or the Holder of any Warrant.

                  "Issuer"  means World Wide  Wireless  Communications,  Inc., a
         Nevada corporation, and its successors.

                  "Majority  Holders"  means at any time the Holders of Warrants
         exercisable  for a majority  of the shares of  Warrant  Stock  issuable
         under the Warrants at the time outstanding.

                  "NASDAQ" means the National  Association of Securities Dealers
         Automated Quotation System.

                  "Original Issue Date" means April 14, 2000.

                  "Other  Common" means any other Capital Stock of the Issuer of
         any class which shall be  authorized at any time after the date of this
         Warrant  (other  than  Common  Stock) and which shall have the right to
         participate  in the  distribution  of earnings and assets of the Issuer
         without limitation as to amount.

                  "Person" means an individual,  corporation,  limited liability
         company,  partnership,   joint  stock  company,  trust,  unincorporated
         organization,  joint venture, Governmental Authority or other entity of
         whatever nature.

                  "Per Share Market Value" means on any particular  date (a) the
         closing  price per share of the Common Stock on such date on the Nasdaq
         National  Market,  The  Nasdaq  SmallCap  Market  or  other  registered
         national  stock exchange on which the Common Stock is then listed or if
         there is no such price on such  date,  then the  closing  price on such
         exchange or quotation  system on the date nearest  preceding such date,
         or (b) if the Common  Stock is not listed  then on the Nasdaq  National
         Market,  The Nasdaq  SmallCap  Market or any registered  national stock
         exchange,  the  closing  price  for a  share  of  Common  Stock  in the
         over-the-counter  market,  as  reported  by NASDAQ  or in 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 Common Stock is 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 Common Stock
         is not then publicly  traded the fair market value of a share of Common
         Stock as determined by an Independent  Appraiser selected in good faith
         by the Majority  Holders;  provided,  however,  that the Issuer,  after
         receipt of the determination by such Independent Appraiser,  shall have
         the right to select an additional Independent Appraiser, in which case,
         the  fair   market   value  shall  be  equal  to  the  average  of  the
         determinations  by  each  such  Independent  Appraiser;  and  provided,

                                      -14-
<PAGE>

         further that all  determinations of the Per Share Market Value shall be
         appropriately  adjusted for any stock dividends,  stock splits or other
         similar  transactions  during such period.  The  determination  of fair
         market value by an Independent  Appraiser  shall be based upon the fair
         market  value of the  Issuer  determined  on a going  concern  basis as
         between a willing  buyer and a willing  seller and taking into  account
         all relevant  factors  determinative  of value,  and shall be final and
         binding on all  parties.  In  determining  the fair market value of any
         shares  of  Common  Stock,  no  consideration  shall  be  given  to any
         restrictions on transfer of the Common Stock imposed by agreement or by
         federal or state securities laws, or to the existence or absence of, or
         any limitations on, voting rights.

                  "Preferred  Stock"  means the  Issuer's  Series A  Convertible
         Preferred  Stock,  par value $.01 per share and stated value $1,000 per
         share.

                  "Registration  Rights  Agreement" has the meaning specified in
         Section 3(f) hereof.

                  "Registration  Statement"  has the  meaning  set  forth in the
         Registration Rights Agreement.

                  "Securities"  means  any  debt  or  equity  securities  of the
         Issuer, whether now or hereafter authorized, any instrument convertible
         into or  exchangeable  for  Securities  or a Security,  and any option,
         warrant or other right to purchase or acquire any Security.  "Security"
         means one of the Securities.

                  "Securities Act" means the Securities Act of 1933, as amended,
         or any similar federal statute then in effect.

                  "Subsidiary"  means  any  corporation  at  least  50% of whose
         outstanding  Voting  Stock  shall  at the  time be  owned  directly  or
         indirectly by the Issuer or by one or more of its  Subsidiaries,  or by
         the Issuer and one or more of its Subsidiaries.

                  "Trading  Day"  means (a) a day on which the  Common  Stock is
         traded on the Nasdaq  National  Market,  The Nasdaq  SmallCap Market or
         other registered  national stock exchange on which the Common Stock has
         been  listed,  or (b) if the  Common  Stock is not listed on the Nasdaq
         National Market, The Nasdaq SmallCap Market or any registered  national
         stock  exchange,  a day or which  the  Common  Stock is  traded  in the
         over-the-counter  market, as reported by the OTC Bulletin Board, or (c)
         if the Common Stock is not quoted on the OTC Bulletin  Board,  a day on
         which the  Common  Stock is 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,  however,  that in the  event  that the  Common  Stock is not
         listed or quoted as set forth in (a), (b) and (c) hereof,  then Trading
         Day shall mean any day except Saturday,  Sunday and any day which shall
         be a legal holiday or a day on which banking  institutions in the State
         of New York  are  authorized  or  required  by law or other  government
         action to close.

                                      -15-
<PAGE>

                  "Term" has the meaning specified in Section 1 hereof.

                  "Voting  Stock",  as  applied  to  the  Capital  Stock  of any
         corporation,  means  Capital  Stock of any  class or  classes  (however
         designated) having ordinary voting power for the election of a majority
         of the members of the Board of Directors (or other  governing  body) of
         such  corporation,  other than Capital  Stock having such power only by
         reason of the happening of a contingency.

                  "Warrants"  means the Warrants issued and sold pursuant to the
         Subscription  Agreement,  dated  April  14,  2000,  including,  without
         limitation,  this Warrant,  and any other warrants of like tenor issued
         in substitution or exchange for any thereof  pursuant to the provisions
         of Section 2(c), 2(d) or 2(e) hereof or of any of such other Warrants.

                  "Warrant  Price"  means a price equal to 110% of the Per Share
         Market Value as of the Trading Day on the Initial Closing Date, as such
         price  may be  adjusted  from  time to time as  shall  result  from the
         adjustments specified in Section 4 hereof.

                  "Warrant Share Number" means at any time the aggregate  number
         of shares of Warrant  Stock  which may at such time be  purchased  upon
         exercise of this Warrant,  after giving effect to all prior adjustments
         and  increases  to such  number  made or  required to be made under the
         terms hereof.

                  "Warrant  Stock" means Common Stock  issuable upon exercise of
         any Warrant or Warrants or otherwise  issuable  pursuant to any Warrant
         or Warrants.

         8.       Other Notices.  In case at any time:

                           (A)      the Issuer shall make any  distributions  to
                                    the holders of Common Stock; or

                           (B)      the Issuer shall  authorize  the granting to
                                    all holders of its Common Stock of rights to
                                    subscribe  for or  purchase  any  shares  of
                                    Capital  Stock of any class or of any Common
                                    Stock Equivalents or Convertible  Securities
                                    or other rights; or

                           (C)      there shall be any  reclassification  of the
                                    Capital Stock of the Issuer; or

                           (D)      there shall be any capital reorganization by
                                    the Issuer; or

                           (E)      there  shall  be any  (i)  consolidation  or
                                    merger  involving  the  Issuer or (ii) sale,
                                    transfer  or  other  disposition  of  all or
                                    substantially all of the Issuer's  property,
                                    assets or business (except a merger or other
                                    reorganization  in which the Issuer

                                      -16-
<PAGE>

                                    shall be the surviving  corporation  and its
                                    shares of Capital Stock shall continue to be
                                    outstanding   and  unchanged  and  except  a
                                    consolidation,  merger,  sale,  transfer  or
                                    other  disposition  involving a wholly-owned
                                    Subsidiary); or

                           (F)      there  shall be a voluntary  or  involuntary
                                    dissolution,  liquidation  or  winding-up of
                                    the Issuer or any partial liquidation of the
                                    Issuer or  distribution to holders of Common
                                    Stock;

then, in each of such cases,  the Issuer shall give written notice to the Holder
of the date on which (i) the books of the Issuer  shall close or a record  shall
be taken for such dividend,  distribution  or  subscription  rights or (ii) such
reorganization,    reclassification,    consolidation,    merger,   disposition,
dissolution,  liquidation or  winding-up,  as the case may be, shall take place.
Such notice also shall  specify the date as of which the holders of Common Stock
of record shall  participate  in such  dividend,  distribution  or  subscription
rights, or shall be entitled to exchange their certificates for Common Stock for
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,  consolidation, merger, disposition,  dissolution, liquidation
or  winding-up,  as the case may be. Such notice  shall be given at least twenty
days prior to the action in question  and not less than twenty days prior to the
record  date or the date on which the  Issuer's  transfer  books  are  closed in
respect thereto.  The Issuer shall give to the Holder notice of all meetings and
actions by written  consent  of its  stockholders,  at the same time in the same
manner as notice of any  meetings  of  stockholders  is  required to be given to
stockholders who do not waive such notice (or, if such requires no notice,  then
two Trading Days written notice thereof describing the matters upon which action
is to be  taken).  The Holder  shall have the right to send two  representatives
selected by it to each meeting,  who shall be permitted to attend,  but not vote
at, such meeting and any adjournments  thereof. This Warrant entitles the Holder
to receive copies of all financial and other information distributed or required
to be distributed to the holders of the Common Stock.

         9. Amendment and Waiver. Any term, covenant,  agreement or condition in
this  Warrant may be amended,  or  compliance  therewith  may be waived  (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  by a written instrument or written instruments  executed by the
Issuer and the Majority Holders;  provided,  however,  that no such amendment or
waiver  shall  reduce the Warrant  Share  number,  increase  the Warrant  Price,
shorten the period  during  which this  Warrant may be  exercised  or modify any
provision of this Section 9 without the consent of the Holder of this Warrant.

         10.  Governing  Law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  GIVING  EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW.

         11. 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 earlier of (i) the date of  transmission,  if
such  notice or  communication  is  delivered  via

                                      -17-
<PAGE>

facsimile at the facsimile  telephone  number specified for notice prior to 5:00
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
at the facsimile telephone number specified for notice later than 5:00 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
nationally  recognized  overnight  courier service or (iv) actual receipt by the
party to whom  such  notice is  required  to be given.  The  addresses  for such
communications shall be with respect to the Holder of this Warrant or of Warrant
Stock issued pursuant hereto, addressed to such Holder at its last known address
or facsimile  number  appearing on the books of the Issuer  maintained  for such
purposes, or with respect to the Issuer, addressed to:

                  World Wide Wireless Communications, Inc.
                  520 Third Street
                  Suite 101
                  Oakland, California
                  Attention: Douglas Haffer
                  Telephone No.:  (510) 839-6100
                  Facsimile No.:  (510) 839-7088

or to such other address or addresses or facsimile number or numbers as any such
party may most recently have  designated in writing to the other parties  hereto
by such  notice.  Copies of  notices  to the  Holder  shall be sent to Stroock &
Stroock & Lavan LLP, 180 Maiden Lane, New York New York  10038-4982,  Attention:
James R. Tanenbaum,  Esq.,  Telephone No.: (212) 806-5400,  Facsimile No.: (212)
806-6006.  Copies of notices to the Issuer shall be sent to Evers & Hendrickson,
LLP, 155 Montgomery,  12th Floor, San Francisco,  California  94104,  Attention:
William D. Evers,  Esq.,  Telephone  No.: (415)  772-8100,  Facsimile No.: (415)
772-8101.

         12. Warrant Agent.  The Issuer may, by written notice to each Holder of
this  Warrant,  appoint an agent having an office in New York,  New York for the
purpose  of issuing  shares of Warrant  Stock on the  exercise  of this  Warrant
pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant
to  subsection  (d) of Section 2 hereof or replacing  this  Warrant  pursuant to
subsection (e) of Section 3 hereof, or any of the foregoing,  and thereafter any
such  issuance,  exchange or  replacement,  as the case may be, shall be made at
such office by such agent.

         13.  Remedies.  The Issuer  stipulates  that the remedies at law of the
Holder of this Warrant in the event of any default or threatened  default by the
Issuer in the performance of or compliance with any of the terms of this Warrant
are not and will not be adequate and that,  to the fullest  extent  permitted by
law,  such  terms may be  specifically  enforced  by a decree  for the  specific
performance  of any agreement  contained  herein or by an  injunction  against a
violation of any of the terms hereof or otherwise.

         14.  Successors  and  Assigns.  This  Warrant and the rights  evidenced
hereby  shall inure to the  benefit of and be binding  upon the  successors  and
assigns of the Issuer, the Holder hereof

                                      -18-
<PAGE>

and (to the extent provided herein) the Holders of Warrant Stock issued pursuant
hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.

         15.  Modification and Severability.  If, in any action before any court
or agency  legally  empowered to enforce any  provision  contained  herein,  any
provision  hereof is found to be  unenforceable,  then such  provision  shall be
deemed modified to the extent  necessary to make it enforceable by such court or
agency.  If any such provision is not  enforceable as set forth in the preceding
sentence,  the  unenforceability  of such  provision  shall not affect the other
provisions  of this  Warrant,  but this  Warrant  shall be  construed as if such
unenforceable provision had never been contained herein.

         16.  Headings.  The  headings of the  Sections of this  Warrant are for
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

         [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].

                                      -19-
<PAGE>

         IN WITNESS WHEREOF,  the Issuer has executed this Warrant as of the day
and year first above written.

                                                 WORLD WIDE WIRELESS
                                                      COMMUNICATIONS, INC.

                                                 By:__________________________
                                                       Name:
                                                       Title:

<PAGE>

                                  EXERCISE FORM

(To be executed by the Registered Holder
upon Exercise of the Warrant)

TO:  WORLD WIDE WIRELESS COMMUNICATIONS, INC.

         The  undersigned   holder  hereby   exercises  the  right  to  purchase
_________________  shares of Common  Stock (the  "Warrant  Stock") of World Wide
Wireless Communications,  Inc., a Nevada corporation (the "Company"),  evidenced
by the attached Warrant (the "Warrant").  Capitalized  terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

         1. Form of  Warrant  Price.  The  holder  intends  that  payment of the
Warrant Price shall be made as:

         ____________      a. "Cash Exercise" with respect to  _________________
                           Warrant Stock; and/or

         ____________      b.    "Cashless    Exercise"    with    respect    to
                           _______________   Warrant   Stock   (to  the   extent
                           permitted by the terms of the Warrant).

         2. Payment of Warrant Price. In the event that the holder has elected a
Cash  Exercise  with  respect to some or all of the  Warrant  Stock to be issued
pursuant  hereto,  the holder shall pay the sum of  $___________________  to the
Company in accordance with the terms of the Warrant.

         3. Delivery of Warrant  Stock.  The Company shall deliver to the holder
__________ Warrant Stock in accordance with the terms of the Warrant.

Date: _______________ __, ______

                                                   Name of Registered Holder:

                                                   ____________________________

                                                   By:_________________________
                                                        Name:
                                                        Title:

<PAGE>

                                   ASSIGNMENT
                  (To be signed only upon transfer of Warrant)

         FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
all of the rights of the undersigned  under the within Warrant,  with respect to
the number of shares of Common Stock of WORLD WIDE WIRELESS COMMUNICATIONS, INC.
covered thereby set forth hereinbelow unto:

Name of Assignee                    Address                   No. of Shares
----------------                    -------                   -------------

Dated: __________, 20__               __________________________________________
                                      (Signature must conform in all respects to
                                      name of holder as specified on the face of
                                      the Warrant)

                                      __________________________________________
                                      (Address)

Signed in the presence of:

________________________________

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