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                                                                   EXHIBIT 4.18

THE SECURITIES  REPRESENTED  HEREBY AND THE SECURITIES  WHICH MAY BE ISSUED UPON
EXERCISE  HEREOF HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
AMENDED,  OR ANY  STATE  SECURITIES  OR BLUE SKY LAWS.  NO SALE OR  DISTRIBUTION
HEREOF OR THEREOF MAY BE EFFECTED  WITHOUT AN EFFECTIVE  REGISTRATION  STATEMENT
RELATED  THERETO OR AN OPINION OF COUNSEL IN A FORM  REASONABLY  SATISFACTORY TO
THE COMPANY THAT SUCH  REGISTRATION  IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR ANY STATE SECURITIES OR BLUE SKY LAWS.

Warrant No. WCS-7                                Date of Issuance:  May 1, 2002

                               HOME DIRECTOR, INC.

                          Common Stock Purchase Warrant

         This Common Stock Purchase Warrant is issued by Home Director,  Inc., a
Delaware  corporation  (the  "Company"),  to  Southport  Business  Park  Limited
Partnership  (the  "REGISTERED  HOLDER").  The Registered  Holder,  is entitled,
subject  to the terms and  conditions  set forth  below,  to  purchase  from the
Company,  at any time after the  respective  dates  referred  to in Section  1.1
hereof and on or before the  relevant  Expiration  Date (as defined in Section 5
hereof),  upon  surrender of this warrant,  up to 8,000,000  shares  (subject to
adjustment as described  herein) of the Company's  common stock, par value $.001
per share ("COMMON  STOCK"),  at an exercise price per share equal to $0.03. The
shares of  Common  Stock  purchasable  upon  exercise  of this  Warrant  and the
exercise  price per  share may be  adjusted  from time to time  pursuant  to the
provisions  of this  Warrant and are  hereinafter  referred  to as the  "Warrant
Stock" and the "Purchase Price," respectively.

         1. EXERCISE.

                  1.1.   EXERCISABILITY.   This  Warrant  shall  be  exercisable
immediately with respect to all of the shares of Warrant Stock.

                  1.2.  MANNER  OF  EXERCISE.  To the  extent  (and  only to the
extent)  then  exercisable,  this  Warrant may be  exercised  by the  Registered
Holder,  in whole or in part, by  surrendering  this Warrant,  with the purchase
form appended hereto as EXHIBIT A duly executed by such Registered  Holder or by
such Registered  Holder's duly authorized  attorney,  at the principal office of
the  Company,  or at such other  office or agency as the Company may  designate,
accompanied  by payment in full of the Purchase  Price payable in respect of the
number of shares of Warrant Stock  purchased  upon such  exercise.  The Purchase
Price may be paid only by United  States  certified or bank check payable to the
order of the Company or wire transfer of immediately available funds.

                  1.3. EFFECTIVE TIME OF EXERCISE. Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business
on the day on which this Warrant shall have been  surrendered  to the Company as
provided  above.  At such time, the person or persons in whose name or names any
certificate(s)  for  Warrant  Stock  shall be  issuable  upon such  exercise  as


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provided  in  Section  1.4 below  shall be deemed to have  become  the holder or
holders of record of the Warrant Stock presented by such certificates.

                  1.4.  DELIVERY  TO HOLDER.  As soon as  practicable  after the
exercise of this  Warrant in whole or in part,  the Company at its expense  will
cause to be issued in the name of, and delivered to, the Registered  Holder,  or
as such Holder (upon payment by such Holder of any  applicable  transfer  taxes)
may direct:

                           (a) a certificate or  certificates  for the number of
shares of Warrant Stock to which such Registered Holder shall be entitled; and

                           (b) in case  such  exercise  is in part  only,  a new
warrant (dated the date hereof)of like tenor for the remaining Warrant Stock not
so purchased.

         2. ADJUSTMENTS.

                  2.1. STOCK SPLITS AND DIVIDENDS.  If the outstanding shares of
Common Stock shall be subdivided  into a greater  number of shares or a dividend
in Common Stock shall be paid in respect of Common Stock,  the Purchase Price in
effect  immediately  prior to such  subdivision  or at the  record  date of such
dividend shall  simultaneously  with the  effectiveness  of such  subdivision or
immediately after the record date of such dividend be  proportionately  reduced.
If outstanding shares of Common Stock shall be combined into a smaller number of
shares,  the  Purchase  Price in effect  immediately  prior to such  Combination
shall,   simultaneously   with  the  effectiveness  of  such   combination,   be
proportionately  increased.  When any  adjustment  is required to be made in the
Purchase  Price,  the number of shares of  Warrant  Stock  purchasable  upon the
exercise of this Warrant shall be changed to the number determined  dividing (a)
an amount  equal to the  number of shares  issuable  upon the  exercise  of this
Warrant  immediately prior to such adjustment,  multiplied by the Purchase Price
in effect  immediately  prior to Such  adjustment,  by (b) the Purchase Price in
effect immediately after such adjustment.

                  2.2.   RECLASSIFICATION,   ETC.  In  case  there   occurs  any
reclassification  or change of the outstanding  securities of the Company or any
reorganization  of the Company (or any other corporation the stock or securities
of which are at the time  receivable  upon the exercise of this  Warrant) or any
similar corporate reorganization, including a consolidation or a merger in which
the Company is not the surviving corporation,  on or after the date hereof, then
and in each such case the  Registered  Holder,  upon the exercise  hereof at any
time after the consummation of such reclassification,  change or reorganization,
shall be  entitled  to  receive,  in lieu of the stock or other  securities  and
property  receivable  upon the exercise hereof prior to such  consummation,  the
stock or other  securities  or  property  to which such  Holder  would have been
entitled  upon such  consummation  if such  Holder had  exercised  this  Warrant
immediately  prior thereto,  all subject to further  adjustment  pursuant to the
provisions of this Section 2. Notwithstanding anything contained to the contrary
herein, in the event of a merger or consolidation in which the Company shall not
be the  surviving  corporation,  if the other  party to such  transaction  shall
request in writing, the Warrant shall become fully and immediately  exercisable,


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but the Warrant shall expire on the effective  date of such  transaction  to the
extent not exercised prior to such date.

                  2.3. ADJUSTMENT  CERTIFICATE.  When any adjustment is required
to be made in the Warrant Stock or the Purchase  Price  pursuant to this Section
2, the  Company  shall  promptly  mail to the  Registered  Holder a  certificate
setting forth (a) a brief statement of the facts requiring such adjustment,  (b)
the Purchase Price after such adjustment and (c) the kind and amount of stock or
other securities or property into which this Warrant shall be exercisable  after
such adjustment.

         3. TRANSFERS.

                  3.1.  UNREGISTERED  SECURITY.  Each  Holder  of  this  Warrant
acknowledges  that this Warrant and the Warrant  Stock have not been  registered
under the Securities Act of 1933, as amended (the  "SECURITIES  ACT"),  and each
Holder  agrees not to sell,  pledge,  distribute,  offer for sale,  transfer  or
otherwise  dispose of this Warrant or any Warrant Stock issued upon its exercise
in the absence of (a) an effective  registration  statement under the Securities
Act as to this Warrant or such Warrant Stock and  registration or  qualification
of this  Warrant or such  Warrant  Stock under any  applicable  Federal or state
securities  law  then  in  effect,  or (b) an  opinion  of  counsel,  reasonably
satisfactory to the Company,  that such  registration and  qualification are not
required. Each certificate or other instrument for Warrant Stock issued upon the
exercise of this  Warrant  shall bear a legend  substantially  to the  foregoing
effect.

                  3.2. TRANSFERABILITY. Subject to the provisions of Section 3.1
hereof and except as provided below,  this Warrant and all rights  hereunder are
transferable, in whole or in part, upon Surrender of the Warrant with a properly
executed  assignment  at the  principal  office  of  the  Company  and  in  full
compliance  with  all  applicable  provisions  of  the  Securities  Act  and  of
applicable state securities laws.  Notwithstanding  the foregoing,  this Warrant
may  not be  sold,  assigned,  pledged  or  otherwise  transferred  (any  of the
foregoing being referred to as a "Transfer") to any person or entity, other than
an affiliate of the Registered Holder.

                  3.3.  WARRANT  REGISTER.  The Company will maintain a register
containing  the names and addresses of the  Registered  Holders of this Warrant.
Until any transfer of this Warrant is made in the warrant register,  the Company
may treat the Registered Holder of this Warrant as the absolute owner hereof for
all purposes;  PROVIDED,  HOWEVER,  that if this Warrant is properly assigned in
blank, the Company may (but shall not be required to) treat the bearer hereof as
the absolute  owner hereof for all purposes,  notwithstanding  any notice to the
contrary.  Any Registered Holder may change such Registered  Holder's address as
shown on the warrant  register by written notice to the Company  requesting such
change.

         4. NO IMPAIRMENT.  The Company will not, by amendment of its charter or
through reorganization,  consolidation,  merger, dissolution,  sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms of this Warrant,  but will at all times in good faith assist
in the  carrying  out of all such terms and in the taking of all such  action as


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may be necessary or  appropriate in order to protect the rights of the holder of
this Warrant against impairment.

         5.  TERMINATION.  The right to purchase Warrant Stock upon the exercise
of this Warrant shall terminate,  to the extent then  unexercised,  on April 30,
2005 (the "EXPIRATION DATE").

         6. NOTICES OF CERTAIN TRANSACTIONS. In case:

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

         (ii) the initial public offering of shares of the Common Stock pursuant
         to a registration  statement filed under the Securities Act of 1933, as
         amended (an "IPO"); or

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

then,  and in each such case, the Company will mail or cause to be mailed to the
Registered Holder of this Warrant a notice  specifying,  as the case may be, (a)
the date on which a record  is to be taken  for the  purpose  of such  dividend,
distribution  or right,  and stating the amount and character of such  dividend,
distribution  or right,  or (b) the effective  date on which such IPO is to take
place, and the time, if any is to be fixed, as of which the holders of record of
Common Stock are to be determined. Such notice shall be mailed at least ten (10)
business days prior to the record date or effective date for the event specified
in such notice.

         7. RESERVATION OF STOCK. The Company will at all times reserve and keep
available,  solely for the  issuance  and  delivery  upon the  exercise  of this
Warrant,  such  shares of Warrant  Stock as from time to time shall be  issuable
upon the exercise of this Warrant.

         8. EXCHANGE OF WARRANTS. Upon the surrender by the Registered Holder of
the Warrant,  properly  endorsed,  to the Company at the principal office of the
Company,  the Company will, subject to the provisions of Section 3 hereof, issue
and deliver to or upon the order of such Holder, at the Company's expense, a new
Warrant or Warrants of like tenor, in the name of such  Registered  Holder or as
such Registered Holder (upon payment by such Registered Holder of any applicable
transfer  taxes)  may  direct,  calling  in the  aggregate  on the face or faces
thereof for the number of shares of Warrant  Stock called for on the face of the
Warrant so surrendered.

         9.  REPLACEMENT  OF  WARRANTS.  Upon  receipt  of  evidence  reasonably
satisfactory  to the Company of the loss,  theft,  destruction  or mutilation of
this Warrant and (in the case of loss,  theft or  destruction)  upon delivery of
any  indemnity  agreement  (with  surety if  reasonably  required)  in an amount
reasonably  satisfactory  to the Company,  or (in the case of  mutilation)  upon
surrender  and  cancellation  of this Warrant,  the Company will issue,  in lieu
thereof, a new Warrant of like tenor.



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         10. INVESTMENT REPRESENTATIONS. The Registered Holder represents to the
Company that this  Warrant is being  acquired  for the  Registered  Holder's own
account and for the purposes of  investment  and not with a view to, or for sale
in connection with, the distribution  thereof, nor with any present intention of
distributing or selling the Warrant or the Warrant Stock. The Registered  Holder
acknowledges  that  he has  been  afforded  the  opportunity  to meet  with  the
management  of the Company and to ask  questions  of, and receive  answers from,
such management about the business and affairs of the Company and concerning the
terms and conditions of this Warrant, and to obtain any additional  information,
to the extent that the Company  possessed  such  information or could acquire it
without unreasonable effort or expense,  necessary to verify the accuracy of the
information  otherwise  obtained by or furnished to the Registered  Holder.  The
Registered  Holder has  received all  information  which the  Registered  Holder
considered necessary to form a decision concerning the purchase of this Warrant,
and no  valid  request  to the  Company  by the  Registered  Holder  hereof  for
information  of any kind  about the  Company  has been  refused or denied by the
Company or remains  unfulfilled  as of the date hereof.  The  Registered  Holder
represents that he is considered a sophisticated  investor, is familiar with the
risks  inherent in  speculative  investments  such as in the  Company,  has such
knowledge  and  experience in financial  business  matters that it is capable of
evaluating the merits and risk of the investment in this Warrant and the Warrant
Stock, and is able to bear the economic risk of the investment.

         11.  REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company hereby
represents and warrants to the Registered Holder as follows:

                  11.1.  AUTHORIZATION OF WARRANT STOCK. The issuance,  sale and
delivery of the shares of Common Stock purchasable upon exercise of this Warrant
have been duly authorized by all requisite corporate action of the Company. When
issued,  sold and delivered in accordance  with this Warrant,  the Warrant Stock
will be duly and validly issued, fully paid and nonassessable.

                  11.2. DUE ORGANIZATION AND QUALIFICATION.  The Company is duly
organized,  validly existing and in good standing under the laws of the State of
Delaware.  The Company has all requisite  corporate  power and authority to own,
lease and  operate  its  assets and  property  and to carry on its  business  as
presently  conducted.  The Company is duly qualified to transact business and is
in good standing in each jurisdiction in which the nature of its business or the
location of its property  requires  such  qualification,  except those where the
failure  to be so  qualified  would not have a  material  adverse  effect on its
business,  operations,  assets or condition (financial or otherwise), taken as a
whole.

                  11.3.  POWER AND  AUTHORITY.  The  Company  has the  requisite
corporate power and authority to execute and deliver this Warrant and to perform
its  obligations  hereunder.  The  execution,  delivery and  performance of this
Warrant have been duly authorized by all necessary  corporate action on the part
of the Company. This Warrant has been duly executed and delivered by the Company
and is the valid and binding  obligations of the Company enforceable against the
Company in  accordance  with its  terms,  except as such  enforceability  may be
limited by applicable  bankruptcy,  moratorium,  insolvency,  reorganization  or
other  similar  laws  now  or  hereafter  in  effect  relating  to or  affecting


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creditors' rights generally and general equitable principles (whether considered
in a proceeding in equity or at law).

         12. MAILING OF NOTICES.  Any notice  required or permitted  pursuant to
this Warrant  shall be in writing and shall be deemed  sufficient  upon receipt,
when  delivered  personally or sent by courier,  overnight  delivery  service or
confirmed  facsimile,  or three (3) business  days after being  deposited in the
regular mail, as certified or registered mail (airmail if sent internationally),
with  postage  prepaid,  addressed  (a)  if to  the  Registered  Holder,  to 101
Southcenter  Court,  Suite 1100,  Morrisville,  North  Carolina 27560 or to such
other address as it may notify the Company in writing and (b) if to the Company,
to 7132 Santa Teresa Boulevard,  San Jose,  California 95139,  Attention:  Chief
Executive  Officer,  or to such other  address  as it may notify the  Registered
Holder in writing.

         13. RIGHTS AND OBLIGATIONS AS  STOCKHOLDER.  Until the exercise of this
Warrant,  the  Registered  Holder of this Warrant shall not have or exercise any
rights by virtue hereof as a stockholder of the Company.

         14. FULLY PAID SHARES; TAXES. The Company agrees that the Warrant Stock
represented  by each and every  certificate  delivered  on the  exercise of this
Warrant in accordance with the terms hereof shall, at the time of such delivery,
be validly issued,  fully-paid and  nonassessable,  free and clear of all liens,
pledges,  options,  claims or other encumbrances.  The Company further covenants
and agrees that it will pay, when due and payable, any and all federal and state
stamp,  original  issue or similar  taxes (but  specifically  not  including any
income  taxes) which may be payable in respect of the issue of any Warrant Stock
or certificates therefore.

         15. NO FRACTIONAL SHARES. No fractional shares of Warrant Stock will be
issued in  connection  with any exercise  hereunder.  In lieu of any  fractional
shares which would  otherwise be issuable,  the Company  shall pay cash equal to
the product of such fraction multiplied by the fair market value of one share of
Warrant Stock  received on the date of exercise,  as determined in good faith by
the Company's Board of Directors.

         16.  AMENDMENT  OR WAIVER.  Any term of this  Warrant may be amended or
waived only in a written  instrument  executed by the Company and the Registered
Holder.



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         17.  HEADINGS.  The  headings  in  this  Warrant  are for  purposes  or
reference  only and shall not  limit or  otherwise  affect  the  meaning  of any
provision of this Warrant.

         18.  GOVERNING  LAW.  This  Warrant  shall be governed,  construed  and
interpreted in accordance with the laws of the State of Delaware, without giving
effect to principles of conflicts of law.

         IN WITNESS  WHEREOF,  the  undersigned  has executed  this Common Stock
Purchase Warrant on the date first above written.


                                 HOME DIRECTOR, INC.



                                 By:
                                     -----------------------------------------
                                     Daryl Stemm
                                     Director of Finance & Corporate Secretary




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                                                                      EXHIBIT A

PURCHASE FORM


To:      Home Director, Inc.

The  undersigned,  pursuant  to the  provisions  set forth in Section 1.2 of the
attached  Warrant No.  WCS-7,  hereby  irrevocably  elects to purchase  ________
shares of the Common Stock  covered by such  Warrant and  herewith  makes a cash
payment of $_________,  representing  the full purchase price for such shares at
the price per share provided for in such Warrant.



                                    Signature:
                                                 ------------------------------

                                    Date:
                                                 ------------------------------

                                    Name (print):
                                                 ------------------------------

                                    Title (if applicable):
                                                          ---------------------


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