Document:

Exhibit 10.12

                                                                  EXECUTION COPY

                          CLINICAL RESEARCH SUBCONTRACT
                          -----------------------------

      This CLINICAL RESEARCH SUBCONTRACT, dated and effective as of March 29,
2001 (the "Agreement"), is entered into by and between THE UNIVERSITY OF NORTH
CAROLINA AT CHAPEL HILL for its School of Medicine, (hereinafter called
"UNC-CH"), and IMMTECH INTERNATIONAL, INC., a Delaware corporation with its
principal office and place of business at 150 Fairway Drive, Suite 150, Vernon
Hills, IL 60061, (hereinafter called "Immtech").

                               W I T N E S S E T H

      WHEREAS, in pursuit of its educational purposes, which include research
and training, UNC-CH undertakes scholarly research and experimental activities
in a variety of academic disciplines; and

      WHEREAS, UNC-CH has received an award from the Bill & Melinda Gates
Foundation (the "Gates Grant") to fund a research and development program for
novel drug candidates for the treatment of Human African Trypanosomiasis and
Lieshmaniasis (the "Program"); and

      WHEREAS, the Program contemplates that Immtech would perform certain
functions therein; and

      WHEREAS, in furtherance of its scholarly research and instructional
interests, UNC-CH is willing to contract with Immtech upon the terms and
conditions set forth below; and

      WHEREAS, the research program contemplated by this Agreement is of mutual
interest and benefit to Immtech and to UNC-CH, and will further UNC-CH's
instructional, research and public service objectives in a manner consistent
with its status as an educational institution; and

      WHEREAS, the Research Plan (the "Research") (a copy of which is attached
hereto as Exhibit A), which will guide the performance of this Agreement, has
been written collaboratively by UNC-CH and by Immtech; and

      WHEREAS, Immtech is uniquely equipped to perform the Research.

      NOW THEREFORE, in consideration of the agreements and covenants contained
herein, the sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

1.    SCOPE OF WORK.

  A.  Immtech agrees it is fully able to perform the Research in a professional,
      competent manner with strict adherence to its terms, and Immtech will
      utilize its commercially reasonable and good faith efforts to do so.
      UNC-CH and Immtech further agree that during the term of this Agreement
      they will jointly prepare protocols to guide both Phase II and Phase III
      clinical trials (the "Protocols").

                                      -1-
<PAGE>

  B.  Immtech shall exercise commercially reasonable and good faith efforts to
      carry out the Research in accordance with this Agreement. Immtech may
      provide through subcontract for performance of portions of the Research by
      other entities; provided, however, that each such subcontract to
      noncommercial entities shall include payment of indirect costs not to
      exceed ten percent (10%) of the total amount of such subcontract, and that
      the scope of work for each such subcontract shall have been approved by
      UNC-CH in writing before execution and delivery of that subcontract.

2.    PERSONNEL.

      Immtech's Principal Investigator is James Allen, Ph.D., together with such
additional personnel as may be assigned by Immtech. UNC-CH's Principal
Investigator shall be Richard Tidwell, Ph.D.

3.    PERFORMANCE PERIOD.

      The effective period of this Agreement will be from the effective date
written above through November 17, 2005, unless otherwise terminated in
accordance with Article 13. The effective period may be extended by mutual
agreement as provided in Article 14.

4.    RECORDKEEPING, REPORTING AND ACCESS.

  A.  UNC-CH's authorized representative(s), representatives of the Bill &
      Melinda Gates Foundation, and regulatory authorities to the extent
      permitted by law, may, during regular business hours, arrange in advance
      with Immtech's Principal Investigator and Immtech to:

      (1)  examine and inspect Immtech's facilities required for performance of
           the Research; and

      (2)  inspect and copy all data and work products relating to the Research
           (such copying to be done at the expense of the requesting party if
           more than one copy is requested to be made).

  B.  Immtech shall cooperate with any regulatory authority and allow regulators
      access to applicable records and data. In performing the Research, Immtech
      shall abide by the guidelines for biomedical research set forth by the
      Council for International Organizations of Medical Sciences.

  C.  Immtech and its Principal Investigator shall perform the following record
      keeping and reporting obligations in a timely fashion:

      (1)  preparation and maintenance of complete, accurately written records,
           accounts, notes, reports and data of the Research; and

                                      -2-
<PAGE>

      (2)  preparation and submission to UNC-CH in a timely manner of a copy of
           all original case report forms ("Case Reports") for each patient or
           subject participating in the Research ("Research Subject") as
           provided in the Protocols.

  D.  All data and work products relating to the Research, including data and
      work products developed by subcontractors, shall be jointly owned by
      UNC-CH and Immtech; provided, however, that Immtech may use the data and
      work products generated by the Research in connection with efforts to
      obtain regulatory approval for Immtech products.

5.    COST AND PAYMENT.

  A.  As consideration for performance under the terms of this Agreement, and
      subject to continued availability of funds from the Bill & Melinda Gates
      Foundation, UNC-CH shall pay Immtech up to a total sum of $9.8 million
      (the "Gates Funds"), as and when provided in Exhibit B attached hereto
      (the "Budget And Payment Schedule") and incorporated herein by reference.
      Upon the execution and delivery of this Agreement, $4.3 million of the
      Gates Funds shall be paid by UNC-CH to Immtech by wire transfer of
      immediately available funds to the account specified by Immtech below. The
      Gates Funds includes all applicable overheads due any party or entity.

                  Bank Name:              LaSalle Bank N.A.
                  Bank ABA No.:           0710-0050-5
                  Immtech Account Name:   Immtech International, Inc.
                  Immtech Account No.:    5800308586
                  Immtech Tax I.D. No.:   39-1523370
                  Reference:              Gates

  B.  Payment of all Gates Funds shall be by wire transfer to the account set
      forth above and shall be made to Immtech according to the Budget And
      Payment Schedule. All costs outlined in the Budget And Payment Schedule
      shall remain firm for the duration of the Research, unless otherwise
      agreed herein or in writing by Immtech and UNC-CH. Immtech shall deposit
      Gates Funds advanced to Immtech hereunder in an interest-bearing account,
      and all interest earned thereby shall be paid to UNC-CH on a quarterly
      basis, with the first such payment due on or about July 1, 2001.

  C.  Immtech shall maintain records of receipts and expenditures under this
      Agreement for a period of four (4) years following the termination or
      expiration of this Agreement.

6.    CONFIDENTIAL INFORMATION.

  A.  Neither Immtech nor UNC-CH shall disclose or use for any purpose other
      than performance of the Research, any and all trade secrets, privileged
      records or other confidential or proprietary information (collectively,
      "Information") disclosed by one party to the other pursuant to this
      Agreement. Such Information shall be disclosed in writing, or if disclosed
      orally or in other than documentary form shall be reduced to writing
      thirty (30) days thereafter. Information which is not in oral or written
      form, such

                                      -3-
<PAGE>

      as but not limited to data tapes, shall be designated in writing as
      confidential within thirty (30) days after disclosure. The obligation of
      non-disclosure shall not apply to the following:

      (1)  Information at or after such time that it is or becomes publicly
           available through no fault of the recipient party;

      (2)  Information that is already independently known to the recipient
           party, as shown by its prior written records;

      (3)  Information at or after such time that it is disclosed on a
           non-confidential basis by a third party with the legal right to do
           so; or

      (4)  Information independently developed by personnel of the recipient
           party not involved in the Research and not otherwise privy to the
           Information.

  B.  The obligations of confidentiality under this Article shall survive and
      continue for three (3) years after the expiration or termination of this
      Agreement.

  C.  In the event that either party shall come into contact with Research
      subjects' medical records, that party shall hold in confidence the
      identity of the patient and shall comply with all applicable law(s)
      regarding the confidentiality of such records.

  D.  In the event either party finds it necessary to disclose Information to a
      proper authority to permit such party to defend its research against an
      allegation of fraud or other misconduct in science, then such defending
      party shall first notify the other party, whereupon both Immtech and
      UNC-CH shall cooperate in good faith to reach an agreement with respect to
      a mutually satisfactory way to disclose such Information as necessary for
      this limited purpose.

7.    PUBLICATIONS.

      Either party shall have the right to publish the results of Research
provided such publication does not constitute a violation of Article 6. It is
anticipated that Immtech and UNC-CH will coordinate publications. However, in
the event that either party intends to publish independently of the other, prior
to submission for publication or presentation, the party seeking to publish will
provide the other party thirty (30) days for review and comment upon the
manuscript or other material for such publication. Expedited reviews for
abstracts or poster presentations may be arranged if mutually agreeable to
UNC-CH and Immtech or their respective Principal Investigator. Either party
shall be permitted to advise as to the implications of timing of the publication
if the same clinical trials set forth in Protocol are still in progress at other
sites. In addition, if requested in writing and with reasonable justification,
the party proposing to publish will withhold such publication an additional
sixty (60) days to allow for filing a patent application or taking such other
measures as the other party deems appropriate to establish and preserve its
proprietary rights. Notwithstanding the foregoing, the parties agree that if the
Research is part of a multi-center study, then the first publication of the
results of the Research shall be made in conjunction with the results from the
principal investigators at the

                                      -4-
<PAGE>

other study centers. The manner in which the publication will be generated will
be negotiated between UNC-CH, Immtech and the principal investigators of other
study centers prior to initiation of the Phase II clinical trials involved in
the Research. However, in the event no publication of the multi-center study has
been made within one year of the completion of the study at all centers, then
Immtech will be free to publish its own results.

8.    INTELLECTUAL PROPERTY.

  A.  "New Invention or Discovery" shall mean any invention or discovery
      conceived or reduced to practice during and as a part of the Research or
      the Program (1) performed pursuant to this Agreement by Immtech's
      Principal Investigator, staff, employees, or subcontractors or jointly by
      such an individual or individuals working with one or more employees of
      UNC-CH, or (2) performed by any subcontractors of UNC-CH, or their
      respective investigators (collectively with such subcontractors, the
      "Subcontractors"), at any other study center involved in the Program, or
      jointly by any such Subcontractor or Subcontractors working with one or
      more employees of UNC-CH.

  B.  Immtech shall promptly notify UNC-CH, in writing, of any of its New
      Inventions or Discoveries. The notice shall provide a full written
      description of such New Invention or Discovery.

  C.  UNC-CH shall own all right, title and ownership in any New Invention or
      Discovery; provided, however, that any such New Invention or Discovery
      shall be deemed to be licensed to Immtech under and subject to the
      exclusive license agreement then in effect between Immtech, UNC-CH and any
      other parties thereto, as the case may be, as such license agreement may
      be amended, superceded or replaced from time to time (the "Existing
      License Agreement"). If the Existing License Agreement then in effect is
      that certain License Agreement dated August 25, 1993 (the "1993
      Agreement"), between UNC-CH and Pharm-Eco Laboratories, Inc.
      ("Pharm-Eco"), and which has been assigned by Pharm-Eco to Immtech, then
      upon the execution by Immtech, UNC-CH, Auburn University, Duke University,
      and the Georgia State University Research Foundation, Inc., of that
      certain proposed License Agreement which is under negotiation as of the
      date of this Agreement and is expected to be entered into shortly after
      the execution of this Agreement (such executed agreement, as the same may
      be amended, superceded or replaced from time to time, the "New License
      Agreement"), and if so provided in the New License Agreement, the 1993
      Agreement shall be superceded and replaced by the New License Agreement,
      and any and all New Inventions or Discoveries which had, in accordance
      with the first sentence of this Section 8(C), previously been licensed to
      Immtech under the 1993 Agreement, shall then be licensed to Immtech under
      the New License Agreement, and the 1993 Agreement shall no longer be in
      effect. Notwithstanding any other provision of this Article 8, at such
      time as the New License Agreement has not been executed and UNC-CH
      concludes that further efforts to complete and execute the New License
      Agreement would be futile, then upon fifteen (15) days prior written
      notice to Immtech from UNC-CH, Immtech shall have no further license
      rights to any New Invention or Discovery.

                                      -5-
<PAGE>

  D.  UNC-CH represents and warrants (1) that each of those subcontractors at
      the other study centers involved in the Program which are performing
      "basic research" (each, a "BR Subcontractor") has granted UNC-CH an
      option, for 180 days after such BR Subcontractor delivers a notice to
      UNC-CH informing UNC-CH of any of its New Inventions or Discoveries, to
      receive an exclusive license for such New Invention or Discovery from such
      BR Subcontractor (the "License Option"), and that each such BR
      Subcontractor may not license any of its New Inventions or Discoveries to
      any other person or entity until either UNC-CH elects to not exercise its
      License Option with respect to such New Invention or Discovery, or such
      180 day option period expires without UNC-CH having exercised its License
      Option with respect to such New Invention or Discovery, (2) that New
      Inventions or Discoveries are not licensed to anyone other than Immtech,
      and (3) that UNC-CH is not under any obligation to license any New
      Inventions or Discoveries to anyone other than Immtech. UNC-CH covenants
      and agrees that UNC-CH will use its best efforts to ensure that each new
      BR Subcontractor or other subcontractor which UNC-CH may engage after the
      date of this Agreement grants to UNC-CH a License Option substantially
      similar to the License Option described in the preceding sentence.

  E.  UNC-CH agrees that it will not license or sublicense any New Inventions or
      Discoveries to anyone other than Immtech without Immtech's express prior
      written consent. UNC-CH agrees that it will (1) within ten (10) days after
      its receipt by its Office of Technology Development from any BR
      Subcontractor or other subcontractor of a notice of any New Invention or
      Discovery, forward to Immtech a complete copy of such notice, (2) request
      from such BR Subcontractor any information requested by Immtech, (3) allow
      Immtech up to the 170th day of UNC-CH's 180 day License Option period (or
      up to the tenth (10th) day prior to the deadline for UNC-CH set forth in
      such License Option, if such License Option period is not 180 days) for
      Immtech to deliver a notice to UNC-CH stating whether or not Immtech
      requests UNC-CH to exercise its License Option with respect to such New
      Invention or Discovery, and (4) if so requested by Immtech pursuant to the
      preceding clause, duly exercise its License Option with respect to such
      New Invention or Discovery, and contemporaneously with such exercise,
      sublicense such New Invention or Discovery to Immtech on such terms as are
      as close to the terms of the license granted to UNC-CH as is permitted by
      the terms of such license granted to UNC-CH.

  F.  It is agreed that neither UNC-CH nor Immtech transfers to the other by
      operation of this Agreement any patent right, copyright right, or other
      proprietary right of either party, except as specifically set forth
      herein.

9.    USE OF IMMTECH'S OR UNC-CH'S NAME.

  A.  The use of the name, symbol or any mark of any party hereto, or any
      contraction or combination thereof, in any manner in connection with the
      Research is expressly prohibited except with prior written consent of the
      party owning such name, symbol or mark; provided, however, that no such
      consent shall be required for Immtech to identify UNC-CH and describe its
      relationship and transactions with UNC-CH in connection with

                                      -6-
<PAGE>

      (a) communications and filings with the Securities and Exchange
      Commission, the NASD, NASDAQ, the Food and Drug Administration, or other
      governmental or regulatory agencies or authorities, as reasonably
      advisable in connection with or required by such agencies or authorities,
      (b) the inclusion of any statement previously made available to the
      public, or permitted under the Existing License Agreement, in any
      communications or other documentation relating to any financing or
      fund-raising by Immtech, (c) the preparation of Immtech's financial
      statements, and (d) communications with other study centers involved in
      the Program.

10.   APPLICABLE LAW.

      This Agreement shall be governed by the laws of the State of North
Carolina.

11.   NOTICE.

      Any notice required or permitted under this Agreement shall be in writing
and shall be deemed given as of the date it is (A) delivered by hand, or (B)
delivered by courier or delivery service (including, without limitation, FedEx,
DHL, Airborne Express, UPS, Express Mail and Priority Mail) or by Registered or
Certified Mail, postage prepaid, return receipt requested, or (C) received by
facsimile, in each case addressed to the party to receive such notice at the
address or facsimile number set forth below, or such other address or facsimile
number as is subsequently specified by written notice to the parties hereto:

            If to UNC-CH:

                  Dr. Robert Lowman, Director
                  Office of Research Services
                  The University of North Carolina at Chapel Hill
                  300 Bynum Hall, CB#4100
                  Chapel Hill, NC  27599-4100
                  FAX:  (919) 962-6769

            If to Immtech:

                  Immtech International, Inc.
                  150 Fairway Drive
                  Suite 150
                  Vernon Hills, IL  60061
                  FAX:  (847) 573-8288
                  Attention:  T. Stephen Thompson

                  with a copy to:

                                      -7-
<PAGE>

                  Cadwalader, Wickersham & Taft
                  100 Maiden Lane
                  New York, New York  10038-4892
                  FAX:  (212) 504-6666
                  Attention:  John F. Fritts, Esq.

12.   LIABILITY.

      Immtech hereby agrees to indemnify, defend and hold harmless UNC-CH and
its schools, departments and employees from any and all liability to the extent
that such liability arises out of Immtech's performance of this Agreement or the
performance of its agents, employees or subcontractors. UNC-CH hereby agrees, to
the extent permitted by the North Carolina Tort Claims Act, to indemnify, defend
and hold harmless Immtech and its directors, officers and employees from any and
all liability to the extent that such liability arises out of UNC-CH's
performance of this Agreement or the performance of its agents, employees,
professors, researchers, students or subcontractors.

13.   TERMINATION OF CLINICAL TRIALS AND/OR THIS AGREEMENT.

  A.  Any clinical trial under any Protocol may be terminated by either party,
      upon immediate prior notice, if animal, human, and/or toxicological test
      results or adverse reactions or side effects with the drug administered or
      the device employed in such clinical trial is of such magnitude or
      incidence to support, in the written opinion of the Scientific Advisory
      Board appointed by UNC-CH to oversee the Research, the termination of such
      clinical trial for the specific compound being studied. If such a
      termination occurs, then the parties will evaluate other candidate
      compounds for substitution and will revise the Research and Protocol
      accordingly; provided, however, that if UNC-CH's Principal Investigator
      and Immtech's President cannot reach an agreement on the selection of
      another candidate compound for substitution within sixty (60) days after
      such termination, then Fred Sparling, M.D., or his successor as chairman
      of the Scientific Advisory Board, shall, after consultation with both
      parties and after reviewing relevant data for each candidate compound,
      select the next candidate compound.

  B.  This Agreement may be terminated by either party upon thirty (30) days'
      prior written notice if any of the following conditions occurs:

      (1)  If either party fails to comply with a material term of the Agreement
           after receipt of written notice with reasonable opportunity to cure
           from the other party.

      (2)  If the Bill & Melinda Gates Foundation withdraws or terminates the
           Gates Grant to UNC-CH through which UNC-CH is funding the Research.

  C.  This Agreement may be terminated in accordance with the following:

      (1)  If the Existing License Agreement is terminated due to any breach or
           default thereunder by Immtech or if the New License Agreement is
           terminated, in either case

                                      -8-
<PAGE>

           without any successor or replacement agreement being entered into to
           which UNC-CH and Immtech are each a party, then each of Immtech and
           UNC-CH shall have the right, upon written notice to the other during
           the ninety (90) days following the effective date of such
           termination, to terminate this Agreement. If neither Immtech nor
           UNC-CH exercises such right, then this Agreement shall continue in
           accordance with its terms, and any licenses or rights which were
           granted by UNC-CH to Immtech under the Existing License Agreement or
           the New License Agreement which are necessary or appropriate in order
           for Immtech to perform its obligations under this Agreement shall
           remain in effect for the duration of this Agreement, and shall be
           governed by the terms and provisions of such license agreement as
           though such license agreement was still in effect. Within thirty (30)
           days after the execution and delivery of this Agreement by Immtech to
           UNC-CH, UNC-CH shall use its best efforts to obtain the agreement of
           each of Auburn University, Duke University, and the Georgia State
           University Research Foundation, Inc. ("Georgia State"), to the same
           terms as are set forth in the preceding sentence with respect to any
           of their respective licenses or rights which are or may be granted by
           either of them to Immtech under any such license agreement.

      (2)  If Richard Tidwell, Ph.D., were to die, become disabled, leave
           UNC-CH, or otherwise be unable or unwilling to continue his
           activities at UNC-CH in connection with this Agreement, and if
           Immtech and UNC-CH are not able, within six (6) months after the date
           of Dr. Tidwell's death, disability, departure or other cessation of
           his activities, to engage a mutually agreeable successor to act as
           the Principal Investigator for UNC-CH hereunder, then each of Immtech
           and UNC-CH shall have the right, upon written notice to the other
           during the ninety (90) days following the end of such six (6) month
           period, to terminate this Agreement. If neither Immtech nor UNC-CH
           exercises such right, then this Agreement shall continue in
           accordance with its terms, and Immtech and UNC-CH shall continue to
           cooperate in good faith to engage a mutually agreeable successor to
           act as the Principal Investigator for UNC-CH hereunder.

  D.  Upon the effective date of termination, there shall be an accounting
      conducted by Immtech, subject to verification by UNC-CH. Within thirty
      (30) days after receipt of adequate documentation therefore, UNC-CH will
      make payment to Immtech for:

      (1)  all services properly rendered and monies properly expended by
           Immtech until the date of termination not yet paid for; and

      (2)  non-cancelable obligations properly incurred for the Research by
           Immtech prior to the effective date of termination; provided,
           however, that such obligations shall not exceed a period of twelve
           (12) months beyond termination of the Agreement (unless UNC-CH shall
           have previously approved such contract or subcontract of longer
           duration) and that in no event shall UNC-CH's obligation to make
           payment to Immtech exceed the amounts budgeted for the project
           segment under way at the time of termination.

                                      -9-
<PAGE>

  E.  Immtech will credit or return to UNC-CH any Gates Funds not expended or
      obligated by Immtech in connection with the Research prior to the
      effective termination date of the notice of termination.

  F.  Immediately upon receipt of a notice of termination of either this
      Agreement or a clinical trial, Immtech's Principal Investigator shall stop
      enrolling Research Subjects into the Protocol for such clinical trial and
      shall cease conducting procedures on Research Subjects already enrolled in
      the Protocol directed by UNC-CH, to the extent medically appropriate in
      Immtech's discretion. If UNC-CH and Immtech cannot agree on the process
      for winding down such clinical trial, then the matter shall be presented
      to the Scientific Advisory Board for direction. Notwithstanding the
      forgoing, if Immtech elects to take over the funding of the clinical trial
      under way, then (1) Immtech may continue such clinical trial and shall
      have sole discretion over such clinical trial from such point forward, and
      (2) Immtech shall indemnify, defend and hold harmless UNC-CH and its
      schools, departments and employees from any and all liability to the
      extent that such liability arises out of Immtech's continuation of such
      clinical trials from such point forward.

  G.  Termination of this Agreement by either party shall not affect the rights
      and obligations of the parties accrued prior to the effective date of the
      termination. The rights and duties under Articles 4, 6, 7, 8, 9, 10, 11,
      12, 13, 14 and 21 survive the termination or expiration of this Agreement.

  H.  If this Agreement is terminated prior to completion, then Immtech shall
      furnish UNC-CH a reasonably comprehensive Principal Investigator's report
      for the Research completed.

14.   AMENDMENTS.

      This Agreement and the Protocol may only be extended, renewed or otherwise
amended by the mutual written consent of parties hereto.

15.   ENTIRE AGREEMENT.

      This Agreement represents the entire understanding of the parties with
respect to the subject matter hereof. In the event of any inconsistency between
this Agreement and the Protocols, the terms of this Agreement shall govern. In
any situation which is not covered by this Agreement or the Protocols, the
parties shall look to that certain letter agreement dated November 8, 2000,
between UNC-CH and the Bill & Melinda Gates Foundation, for guidance as to the
intent of the parties with respect to the Program and the Research.

16.   SEVERABILITY.

      This invalidity or unenforceability of any term or provision of this
Agreement shall not affect the validity or enforceability of any other term or
provision hereof.

                                      -10-
<PAGE>

17.   INTEGRATION.

      Exhibits A and B hereto are incorporated into this Agreement by reference.

18.   ASSIGNMENT.

  A.  Neither party hereto may assign, cede or transfer any of its rights or
      obligations under this Agreement without the written consent of the other
      party, which consent may not be unreasonably withheld; provided, however,
      that without such consent either party may assign this Agreement in
      connection with the transfer or sale of all or substantially all of its
      assets or business to, or its merger or consolidation with, another
      company. Immtech may also assign this Agreement in whole or in part
      without the consent of UNC-CH to any affiliate entity.

  B.  This Agreement shall insure to the benefit of and be binding upon each
      party signatory hereto, its successors and permitted assigns. No
      assignment shall relieve either party of the performance of any accrued
      obligation which such party may then have under this Agreement.

19.   INDEPENDENT CONTRACTOR.

  A.  In the performance of all services hereunder, Immtech shall be deemed to
      be and shall be an independent contractor and, as such, shall not be
      entitled to any benefits applicable to employees of UNC-CH.

  B.  Neither party is authorized or empowered to act as agent for the other for
      any purpose and shall not on behalf of the other enter into any contract,
      warranty or representation as to any matter. Neither party shall be bound
      by the acts or conduct of the other.

20.   CHANGES TO THE PROTOCOL.

      If at a future date changes in the Research or Protocol appear desirable,
then such changes may be made through prior written agreement between UNC-CH and
Immtech. In the event that UNC-CH and Immtech disagree regarding any such
proposed change, then the Scientific Advisory Board appointed by UNC-CH to
oversee the Research shall resolve such disagreement. If in the course of
performing this Agreement, however, either of (a) generally accepted standards
of clinical research and medical practice relating to the safety of Research
Subjects, (b) a directive from the Institutional Review Board of UNC-CH with
authority over the Research, or (c) a decision of the Scientific Advisory Board
appointed by UNC-CH to oversee the Research, requires a deviation from the
Protocol, then such standards will be followed. In such case, the party aware of
the need for a deviation will immediately inform the other of the facts causing
such deviation as soon as the facts are known to the party. If the aggregate
amount of the costs of any and all required changes and/or deviations arising
pursuant to clauses (b) or (c) of this Article 20 during the term of this
Agreement, for which additional funding is not provided to Immtech by either the
Bill & Melinda Gates Foundation, UNC-CH or any third

                                      -11-
<PAGE>

party, exceed $300,000, then Immtech may terminate this Agreement upon thirty
(30) days written notice to UNC-CH.

21.   CONFORMANCE WITH LAW AND ACCEPTED PRACTICE.

      Immtech shall perform the Research in conformance with generally accepted
standards of good clinical practice, with the Protocol, with instructions
provided by UNC-CH's Institutional Review Board and Scientific Advisory Boards,
and with all applicable local, state and federal or national laws and
regulations governing the performance of the Protocol and Research in the
countries involved in the clinical trials, including, but not limited to, the
Swiss Tropical Institute. Immtech shall retain all records resulting from the
Research for the time required by applicable regulations, and shall allow for
inspection by UNC-CH (during normal business hours and upon reasonable advance
notice, unless an emergency medical condition exists with respect to a Research
Subject) of all such records, including the Research Subjects' medical records.

22.   WAIVER.

      No waiver of any term, provision or condition of this Agreement, whether
by conduct or otherwise, in any one or more instances shall be deemed to be or
construed as a further or continuing waiver of any such term, provision or
condition, or of any other term, provision or condition of this Agreement.

    (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK - SIGNATURE PAGE FOLLOWS)

                                      -12-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
duplicate by proper persons thereunto duly authorized, as of the date first
above written.

THE UNIVERSITY OF NORTH                   IMMTECH INTERNATIONAL, INC.
   CAROLINA AT CHAPEL HILL

By:  /s/  Edith A. Hubbard (acting for)    By:  /s/ T. Stephen Thompson
     ---------------------------------         ---------------------------------
Name:   Robert P. Lowman, Ph.D.                Name:   T. Stephen Thompson
Title:  Director, Office of Research           Title:  President and CEO
        Services

     March 29, 2001                               March 29, 2001
     ---------------------------------         ---------------------------------
     Date                                      Date

                                      -13-
<PAGE>

                                    EXHIBIT A
                                    ---------
                                     TO THE
                          CLINICAL RESEARCH SUBCONTRACT
                          -----------------------------
                          (DATED AS OF MARCH 29, 2001)

                                  RESEARCH PLAN
                                  -------------

                                 (See attached)

                                      -14-
<PAGE>

                                    EXHIBIT B
                                    ---------
                                     TO THE
                          CLINICAL RESEARCH SUBCONTRACT
                          -----------------------------
                          (DATED AS OF MARCH 29, 2001)

                           BUDGET AND PAYMENT SCHEDULE
                           ---------------------------

                                 (See attached)

                                      -15-Exhibit 10.1

                                                (reGISTERED DIRECT transactions)

               WESTELL TECHNOLOGIES, INC. SHARE PURCHASE AGREEMENT

         This SHARE PURCHASE AGREEMENT (this "Agreement"), is made and entered
into as of May 7, 2001, by and among Westell Technologies, Inc., a Delaware
corporation (the "Company"), and the State Of Wisconsin Investment Board (the
"Purchaser").

1.       AUTHORIZATION OF SALE OF THE SHARES

         Subject to the terms and conditions of this Agreement, the Company has
authorized the sale of up to 1,657,459 shares (the "Shares") of Class A common
stock, par value $0.01 per share (the "Common Stock"), of the Company.

2.       AGREEMENT TO SELL AND PURCHASE THE SHARES

2.1      Purchase and Sale

         Subject to the terms and conditions of this Agreement, each Purchaser
severally agrees to purchase, and the Company agrees to sell and issue to each
Purchaser, at the Closing (as defined below) that number of Shares set forth
opposite such Purchaser's name on Schedule A attached hereto.

2.2      Purchase Price

         The purchase price of each Share shall be $1.81 (the "Per Share
Price"). The Company shall not, during the period beginning on the date of this
Agreement and ending ninety (90) days after the Closing Date (as defined below),
without adjusting the price per Share hereunder accordingly, sell (i) Shares at
a price per Share of the Per Share Price, or (ii) options, warrants or any other
securities that can be converted into, or otherwise exchanged for, shares of the
Company's common stock at a conversion, exchange or exercise price per Share of
less than the Per Share Price; provided, however, the Company may issue (i)
options to purchase Common Stock pursuant to the company's 1995 Stock Incentive
Plan, (ii) Common Stock pursuant to its Employee Stock Purchase Plan, and (iii)
Common Stock pursuant to the exercise of warrants outstanding on the date
hereof. In the event the Company shall, during the period beginning on the date
of this Agreement and ending ninety (90) days after the Closing Date, sell any
shares of the Company's common stock at, or any instruments that can be
converted into or otherwise exchanged for the Company's common stock, excluding
any issuances described in clauses (i) through (iii) of the preceding sentence
(the "Subsequent Sale") exercisable at, a price per Share (the "Subsequent
Purchase Price") of less than the Per Share Price, the Company shall, within

<PAGE>

ten (10) business days of the Subsequent Sale, pay to the Purchaser, in cash, an
amount equal to the number of Shares times the difference between the Per Share
Price and the Subsequent Purchase Price.

3.       DELIVERY OF THE SHARES AT THE CLOSING

         (a) The completion of the purchase and sale of the Shares (the
"Closing") shall occur at the offices of , counsel to the Company, at 227, West
Monroe Street, Chicago, Illinois 60606 at 9:00 a.m. local time on May 8, 2001,
or such other time and date as may be agreed by the parties, (the "Closing
Date").

         (b) At the Closing, the Company shall authorize its transfer agent (the
"Transfer Agent") to issue to each Purchaser one or more stock certificates
registered in the name of such Purchaser, or in such nominee name(s) as
designated by such Purchaser in writing, representing the number of Shares set
forth in Section 2 above. The Company will deliver one certificate representing
1,325,967 Shares and one certificate representing 331,492 Shares (the
"Certificates") against delivery of payment for the Shares by the Purchasers.
Prior to the Purchasers' delivery of payment for the Shares, the Company will
deliver via facsimile a copy of the Certificates to be delivered upon Closing to
the office of the Purchasers (at the fax number indicated on the signature pages
attached hereto).

         (c) The Company's obligation to complete the purchase and sale of the
Shares shall be subject to the following conditions, any one or more of which
may be waived by the Company:

              (i) receipt by the Company of same-day funds in the full amount of
the purchase price for the Shares being purchased under this Agreement; and

              (ii) the accuracy in all material respects of the representations
and warranties made by the Purchasers and the fulfillment in all material
respects of those undertakings of the Purchasers to be fulfilled before the
Closing.

         (d) The Purchasers' obligations to accept delivery of such stock
certificates and to pay for the Shares evidenced by the certificates shall be
subject to the following conditions, any one or more of which may be waived by a
Purchaser with respect to such Purchaser's obligation:

              (i) the representations and warranties made by the Company in this
Agreement shall be accurate in all material respects and the undertakings of the
Company shall have been fulfilled in all material respects on or before the
Closing;

              (ii) the Company shall have delivered to the Purchasers a
certificate executed by the chairman of the board or president and the chief
financial or accounting officer of the Company, dated the Closing Date, in form
and substance reasonably satisfactory to the Purchasers, to the effect that the
representations and warranties of the Company set forth in Section 4 hereof are
true and correct in all material respects as of the date of this Agreement and
as of the Closing Date, and that the Company has complied with all the
agreements and satisfied all the conditions in this Agreement on its part to be
performed or satisfied on or before the Closing Date; and

<PAGE>

              (iii) the Company shall have delivered to Purchasers a legal
opinion in substantially the form attached hereto as Exhibit A.

4.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company hereby represents and warrants to the Purchasers as follows
(which representations and warranties shall be deemed to apply, where
appropriate, to each subsidiary of the Company):

         4.1 Organization and Qualification

         The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware. The
Company has the corporate power and authority to own, lease and operate its
properties and to conduct its business as currently conducted and to enter into
and perform its obligations under this Agreement. The Company is duly qualified
as a foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except where the
failure to so qualify would not, singly or in the aggregate, have a material
adverse effect on the condition, financial or otherwise, and the earnings,
assets, business affairs or business prospects of the Company, taken as a whole
("Material Adverse Effect").

         4.2 Capitalization

         (a) The authorized capital stock of the Company consists of 85,000,000
shares of Common Stock, 25,000,000 shares of Class B Common Stock and 1,000,000
shares of Preferred Stock.

         (b) As of the date hereof, 2001, the issued and outstanding capital
stock of the Company consists of 42,472,787 shares of Common Stock and
19,124,869 shares of Class B Common Stock. The shares of issued and outstanding
capital stock of the Company have been duly authorized and validly issued, are
fully paid and nonassessable, have not been issued in violation of or are not
otherwise subject to any preemptive or other similar rights, and will not
constitute "restricted securities" within the meaning of Rule 144 (a)(3)
promulgated under the Securities Act of 1933, as amended (the "Securities Act").

         (c) The Company has reserved 8,103,723 shares of Common Stock for
issuance upon the exercise of stock options granted or available for future
grant under the Company's 1995 Stock Incentive Plan and Employee Stock Purchase
Plan.

         (d) The Company has reserved 909,000 shares of Common Stock for
issuance upon the exercise of outstanding warrants to purchase Common Stock.

         With the exception of the foregoing, there are no outstanding
subscriptions, options, warrants, convertible or exchangeable securities or
other rights granted to or by the Company to purchase shares of Common Stock or
other securities of the Company and there are no commitments, plans or
arrangements to issue any shares of Common Stock or any security convertible
into or exchangeable for Common Stock.

<PAGE>

         4.3 Issuance, Sale and Delivery of the Shares

         (a) The Shares have been duly authorized for issuance and sale to the
Purchasers pursuant to this Agreement and, when issued and delivered by the
Company pursuant to this Agreement against payment of the consideration set
forth in this Agreement, will be validly issued and fully paid and nonassessable
and free and clear of all pledges, liens and encumbrances. The certificates
evidencing the Shares are in due and proper form under Delaware law.

         (b) The issuance of the Shares is not subject to preemptive or other
similar rights. No further approval or authority of the shareholders or the
Board of Directors of the Company will be required for the issuance and sale of
the Shares to be sold by the Company as contemplated in this Agreement.

         4.4 Financial Statements

         The financial statements included (as exhibits or otherwise) in the
Disclosure Documents (as defined below) present fairly the financial position of
the Company as of the dates indicated and the results of their operations for
the periods specified, subject in the case of unaudited statements, to normal
year-end audit adjustments not material to the Company's financial position as a
whole. Except as otherwise stated in such Disclosure Documents, such financial
statements have been prepared in conformity with generally accepted accounting
principles applied on a consistent basis, and any supporting schedules included
with the financial statements present fairly the information stated in the
financial statements, except (i) as may be otherwise indicated in such financial
statements or notes thereto or (ii) in the case of unaudited interim statements,
to the extent they do not include footnotes or are condensed or summary
statements..

         4.5 No Material Change

         Since December 31, 2000, and except as set forth in the Disclosure
Documents,

         (a) there has been no change that has a Material Adverse Effect or any
development involving a prospective Material Adverse Effect, excluding political
events and changes in economic conditions generally applicable to business
enterprises in the same business as the Company;

         (b) there have been no transactions entered into by the Company other
than those in the ordinary course of business, which are material with respect
to the Company; and

         (c) there has been no dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock.

         The Company has no material contingent obligations.

         4.6 Environmental

         Except as would not have a Material Adverse Effect,

<PAGE>

         (a) to the best of the Company's knowledge, the Company is in
compliance with all applicable Environmental Laws (as defined below);

         (b) to the best of the Company's knowledge, the Company has all
permits, authorizations and approvals required under any applicable
Environmental Laws and is in compliance with the requirements of such permits
authorizations and approvals;

         (c) there are no pending or, to the best of the knowledge of the
Company, threatened Environmental Claims (as defined below) against the Company.

         For purposes of this Agreement, the following terms shall have the
following meanings: "Environmental Law" means any United States (or other
applicable jurisdiction's) Federal, state, local or municipal statute, law,
rule, regulation, ordinance, code or policy and any published judicial or
administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment, relating to the environment, health, safety
or any chemical, material or substance, exposure to which is prohibited, limited
or regulated by any governmental authority. "Environmental Claims" means any and
all administrative, regulatory or judicial actions, suits, demands, demand
letters, claims, liens, notices of noncompliance or violation, or proceedings
relating in any way to any Environmental Law.

         4.7 No Defaults

         The Company is not in violation of its certificate of incorporation or
bylaws or in material default in the performance or observance of any material
contract that is an exhibit to the Disclosure Documents except as would not have
a Material Adverse Effect or as set forth in the Disclosure Documents.

         4.8 Labor Matters

         No labor dispute with any group of employees of the Company exists or,
to the best knowledge of the Company, is imminent that would result in a
Material Adverse Effect.

         4.9 No Actions

         Except as set forth in the Disclosure Documents, there is no action,
suit or proceeding before or by any court or governmental agency or body,
domestic or foreign, now pending, or, to the knowledge of the Company,
threatened, against or affecting the Company which, singly or in the aggregate,
might result in a Material Adverse Effect or which might materially and
adversely affect the consummation of this Agreement, nor, to the knowledge of
the Company, is there any reasonable basis therefor. Except as set forth in the
Disclosure Documents, the Company is not in default with respect to any
judgment, order or decree of any court or governmental agency or instrumentality
which, singly or in the aggregate, would have a Material Adverse Effect.

         4.10 Intellectual Property

         (a) To the best of the Company's knowledge, the Company has the patent
and intellectual property rights necessary to conduct its business as it is now
being conducted. No

<PAGE>

claim has been made against the Company regarding its alleged infringement of
the intellectual property or patent rights of others that would be expected to
have a Material Adverse Effect.

         (b) No action, suit, arbitration, or legal, administrative or other
proceeding, or investigation is pending, or, to the knowledge of the Company,
threatened, which involves any Proprietary Rights, nor, to the knowledge of the
Company, is there any reasonable basis therefor.

         (c) The Company is not subject to any judgment, order, writ, injunction
or decree of any court or any Federal, state, local, foreign or other
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, or any arbitrator, and has not entered into or is not a
party to any contract which restricts or impairs the use of any such Proprietary
Rights in a manner which would have a material adverse effect on the use of any
of the Proprietary Rights.

         (d) The Company has not received written notice of any pending conflict
with or infringement upon such third-party proprietary rights.

         (e) The Company has not entered into any consent, indemnification,
forbearance to sue or settlement agreement with respect to Proprietary Rights
other than in the ordinary course of business and other that such that would
have a Material Adverse Effect. No claims have been asserted by any person with
respect to the validity of the Company's ownership or right to use the
Proprietary Rights and, to the knowledge of the Company, there is no reasonable
basis for any such claim to be successful.

         (f) The Company has complied, in all material respects, with its
obligations relating to the protection of the Proprietary Rights which are
material to the business of the Company used pursuant to licenses.

         (g) To the knowledge of the Company, no person is infringing on or
violating the Proprietary Rights.

         4.11 Permits

         The Company possesses and is operating in compliance with all material
licenses, certificates, consents, authorities, approvals and permits from all
state, federal, foreign and other regulatory agencies or bodies necessary to
conduct the businesses now operated by it, and the Company has not received any
notice of proceedings relating to the revocation or modification of any such
permit or any circumstance which would lead it to believe that such proceedings
are reasonably likely which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, would have a Material Adverse Effect.

         4.12 Due Execution, Delivery and Performance

         (a) This Agreement has been duly executed and delivered by the Company
and constitutes a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights

<PAGE>

generally and by general equitable principle (regardless or whether such
enforceability is considered in a proceeding in equity or at law).

         (b) The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated in this Agreement and the
fulfillment of the terms of this Agreement, including the sale, issuance and
delivery of the Shares, (i) have been duly authorized by all necessary corporate
action on the part of the Company, its directors and stockholders; (ii) will not
conflict with or constitute a breach of, or default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company pursuant to, any contract, indenture, mortgage, loan
agreement, deed, trust, note, lease, sublease, voting agreement, voting trust or
other instrument or agreement to which the Company is a party or by which it may
be bound, or to which any of the property or assets of the Company is subject;
(iii) will not trigger anti-dilution rights or other rights to acquire
additional equity securities of the Company; and (iv) will not result in any
violation of the provisions of the articles of incorporation or bylaws of the
Company or any applicable statute, law, rule, regulation, ordinance, decision,
directive or order, except, with respect to clause (ii), to the extent that it
would not have a Material Adverse Effect.

         4.13 Properties

         The Company has good title to its properties, free and clear of all
security interests, mortgages, pledges, liens, charges, encumbrances and claims
of record, except those that are described in the Disclosure Documents or would
not have a Material Adverse Effect. The properties of the Company are, in the
aggregate, in good repair (reasonable wear and tear excepted), and suitable for
their respective uses, except as reflected in the Disclosure Documents or to the
extent that it would not result in a Material Adverse Effect. Any real property
held under lease by the Company is held under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the
conduct of the business of the Company. The Company owns or leases all such
properties as are necessary to its business or operations as now conducted,
except to the extent that it would not have a Material Adverse Effect.

         4.14 Compliance

         The Company has conducted and is conducting its business in compliance
with all applicable Federal, state, local and foreign statutes, laws, rules,
regulations, ordinances, codes, decisions, decrees, directives and orders,
except where the failure to do so would not, singly or in the aggregate Material
Adverse Effect.

         4.15 Contributions

         To the Company's knowledge, neither the Company nor any employee or
agent of the Company has made any payment of funds of the Company or received or
retained any funds in violation of any law, rule or regulation.

         4.16 Use of Proceeds; Investment Company

<PAGE>

         The Company intends to use the proceeds from the sale of the Shares for
to repay bank debt, for working capital and other general corporate purposes.
The Company is not now, and after the sale of the Shares under this Agreement
and under all other agreements and the application of the net proceeds from the
sale of the Shares described in the proceeding sentence will not be, an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

         4.17 Prior Offerings

         To the best of the Company's knowledge, all offers and sales of capital
stock of the Company before the date of this Agreement were at all relevant
times duly registered or exempt from the registration requirements of the
Securities Act and were duly registered or subject to an available exemption
from the registration requirements of the applicable state securities or Blue
Sky laws.

         4.18 Taxes

         The Company has filed all material tax returns required to be filed,
which returns are true and correct in all material respects, and the Company is
not in material default in the payment of any taxes, including penalties and
interest, assessments, fees and other charges, shown thereon due or otherwise
assessed, other than those being contested in good faith and for which adequate
reserves have been provided or those currently payable without interest which
were payable pursuant to said returns or any assessments with respect thereto.

         4.19 Other Governmental Proceedings

         Except as set forth in the Disclosure Documents, to the Company's
knowledge, there are no rulemaking or similar proceedings before any Federal,
state, local or foreign government bodies that involve or affect the Company,
which, if the subject of an action unfavorable to the Company, could involve a
prospective Material Adverse Effect.

         4.20 Transfer Taxes

         On the Closing Date, all stock transfer or other taxes (other than
income taxes) that are required to be paid in connection with the sale and
transfer of the Shares to be sold to the Purchasers under this Agreement will
be, or will have been, fully paid or provided for by the Company and all
material laws imposing such taxes will be or will have been fully complied with
in all material respects.

         4.21 Insurance

         The Company maintains insurance of the type and in the amount that the
Company reasonably believes is adequate for its business, including, but not
limited to, insurance covering all real and personal property owned or leased by
the Company against theft, damage, destruction, acts of vandalism and all other
risks customarily insured against by similarly situated companies, all of which
insurance is in full force and effect.

         4.22 Governmental/ Regulatory Consents

<PAGE>

         Except for the filing of the supplemental prospectus describing this
transaction that is required to be filed with the SEC under Rule 424(b)(2) of
the regulations of the Securities Act of 1933 (the "Supplemental Prospectus"),
all registration authorization, approval, qualification or consent with or
required by any court or governmental/regulatory authority or agency that is
necessary in connection with the execution and delivery of this Agreement or the
offering, issuance or sale of the Shares under this Agreement have been
obtained.

         4.23 Securities and Exchange Commission Filings

         The Company has timely filed with the Securities and Exchange
Commission (the "Commission") all documents required to be filed by the Company
under the Securities Exchange Act of 1934, as amended (the "Exchange Act.")

         4.24 Disclosure Documents

         The Company represents and warrants that the information contained in
the following documents (the "Disclosure Documents"), which have been provided
to Purchaser, as of their respective final dates, do not contain any untrue
statement of a material fact or omit to state a material fact required to the
stated therein or necessary to make the statements therein not misleading in
light of the circumstances in which they were made, as of their final dates:

         (a) the Company's Registration Statement on Form S-3 (Registration No.
333-57810 attached hereto as Exhibit C) (including all exhibits thereto and all
information and documents incorporated by reference therein, the "Registration
Statement"), which includes the registration of the original issuance of the
Shares of Common Stock purchased by the Purchasers pursuant to this Agreement,
the Supplemental Prospectus and the Company's Prospectus included in the
Registration Statement;

         (b) the Company's Annual Report on Form 10-K for the fiscal year ended
March 31, 2000;

         (c) the Company's Quarterly Reports on Form 10-Q for the fiscal
quarters ended June 30, 2000, September 30, 2000 and December 31, 2000, as
thereafter amended;

         (d) the Company's Proxy Statement for its 2000 Annual Meeting of
Shareholders; and

         (e) all other documents, if any, filed by the Company with the
Commission since December 31, 2000 pursuant to the reporting requirements of the
Securities Exchange Act.

         4.25 Registration Statement

         The Registration Statement has become effective under the Securities
Act, and no stop order proceedings with respect thereto have been instituted or
are pending or threatened under the Securities Act and nothing has come to our
attention to lead us to believe that such proceedings are contemplated.

         4.26 Contracts

<PAGE>

         The contracts described in the Disclosure Documents or incorporated by
reference therein are in full force and effect on the date hereof, except for
contracts the termination or expiration of which would not, singly or in the
aggregate, have a Material Adverse Effect. Except as set forth in the Disclosure
Documents, neither the Company nor, to the knowledge of the Company, any other
party is in material breach of or default under any such contracts that will
have a Material Adverse Effect.

         4.27 Listing of Shares

         The Company agrees to promptly secure the listing of the Shares upon
each national securities exchange or automated quotation system upon which
shares of Common Stock are then listed and, so long as any Purchaser owns any of
the Shares, shall maintain such listing of all Shares. The Company has taken no
action designed to delist, or which is likely to have the effect of delisting,
the Common Stock from any of the national securities exchange or automated
quotation system upon which the shares of Common Stock are then listed.

         4.28 No Manipulation of Stock

         The Company has not taken and will not, in violation of applicable law,
take any action outside the ordinary course of business designed to or that
might reasonably be expected to cause or result in unlawful manipulation of the
price of the Common Stock to facilitate the sale or resale of the Shares.

5.       REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

         Each Purchaser represents, warrants and covenants to the Company as
follows:

         5.1 This Agreement has been duly executed and delivered by the
Purchaser and constitutes a valid and binding obligation of the Purchaser,
enforceable against the Purchaser in accordance with its terms.

         5.2 The execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated in this Agreement and the
fulfillment of the terms of this Agreement have been duly authorized by all
necessary corporate action on the part of the Company, its directors and
stockholders and will not conflict with or constitute a breach of, or default
under, or result in the creation or imposition of any lien, charge or
encumbrance upon any property or assets of the Purchaser pursuant to, any
contract, indenture, mortgage, loan agreement, deed, trust, note, lease,
sublease, voting agreement, voting trust or other instrument or agreement to
which the Purchaser is a party or by which it or any of them may be bound, or to
which any of the property or assets of the Purchaser is subject, nor will such
execution, delivery and performance result in any violation of the provisions of
the charter or bylaws of the Purchaser or any applicable statute, law, rule,
regulation, ordinance, decision, directive or order.

6.       SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

         Notwithstanding any investigation made by any party to this Agreement,
all covenants, agreements, representations and warranties made by the Company
and the Purchasers in this Agreement and in the certificates for the Shares
delivered pursuant to this Agreement shall

<PAGE>

survive the execution of this Agreement, the delivery to the Purchasers of the
Shares being purchased and the payment therefor.

7.       INDEMNIFICATION

         7.1 Indemnification

              7.1.1 Indemnification by the Company

         The Company agrees to indemnify and hold harmless each Purchaser, each
person, if any, who controls such Purchaser within the meaning of Section 15 of
the Securities Act and each officer, director, employee and agent of such
Purchaser and of any such controlling person against any and all liabilities,
claims, damages or expenses whatsoever, as incurred arising out of or resulting
from any breach or alleged breach or other violation of any representation,
warranty, covenant or undertaking by the Company contained in this Agreement,
and the Company will reimburse the Purchaser for its reasonable legal and other
expenses (including the reasonable cost of any investigation and preparation,
and including the reasonable fees and expenses of counsel) incurred in
connection therewith.

         7.1.2 Indemnification by the Purchaser

         Each Purchaser agrees severally but not jointly to indemnify and hold
harmless the Company, each person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act and each officer, director, employee
and agent of the Company and of any such controlling person against any and all
losses, liabilities, claims, damages or expenses whatsoever, as incurred arising
out of or resulting from any breach or alleged breach or other violation or
alleged violation of any representation, warranty, covenant or undertaking by
the Purchaser contained in this Agreement, and the Purchaser will reimburse the
Company for its reasonable legal and other expenses (including the reasonable
cost of any investigation and preparation, and including the reasonable fees and
expenses of counsel) incurred in connection therewith.

         7.1.3 Indemnification Procedure

         (a) Promptly after receipt by an indemnified party under this Section
7.1.3 of notice of the threat or commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against an indemnifying
party under this Section 7.1.3, promptly notify the indemnifying party in
writing of the claim; but the omission so to notify the indemnifying party will
not relieve it from any liability which it may have to any indemnified party for
contribution or otherwise under the indemnity agreement contained in this
Section 7.1.3 or to the extent it is not prejudiced as a result of such failure.

         (b) In case any such action is brought against any indemnified party
and such indemnified party seeks or intends to seek indemnity from an
indemnifying party, the indemnifying party will be entitled to participate in,
and, to the extent that it may wish, jointly with all other indemnifying parties
similarly notified, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party; provided, however, if the defendants in
any such action include both the indemnified party and the indemnifying party
and the indemnified

<PAGE>

party shall have reasonably concluded that there may be a conflict between the
positions of the indemnifying party and the indemnified party in conducting the
defense of any such action or that there may be legal defenses available to it
or other indemnified parties that are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have
the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying party
to such indemnified party of its election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 7.3 for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless:

              (i) the indemnified party shall have employed such counsel in
connection with the assumption of legal defenses in accordance with the proviso
to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel,
approved by such indemnifying party representing all of the indemnified parties
who are parties to such action) or

              (ii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of commencement of action, in each
of which cases the reasonable fees and expenses of counsel shall be at the
expense of the indemnifying party. Notwithstanding the provisions of this
Section 7.3, neither party shall be liable for any indemnification obligation
under this Agreement until the aggregate amount in indemnifiable claims against
such party exceeds 1% of the amount of gross proceeds received by the Purchaser
for the sale of the shares.

         7.2 Stock Option Matters and Prohibition on Toxics

         The Company shall, within thirty (30) days of the Closing Date, adopt
such amendments to, with respect to (i) and (ii) below, the Company's stock
option plans and By-laws, and, with respect to (iii) and (iv) below, the
Company's By-laws (together, the "Stock Option Plan and By-law Amendments") to
provide that, unless approved by the holders of a majority of the shares present
and entitled to vote at a duly convened meeting of shareholders, the company
shall not:

              (i) grant any stock options with an exercise price that is less
than 100% of the fair market value of the underlying stock on the date of grant;

              (ii) reduce the exercise price of any stock option granted under
any existing or future stock option plan;

              (iii) sell or issue any security of the Company convertible,
exercisable or exchangeable into shares of Common Stock, having a conversion,
exercise or exchange price per share which is subject to downward adjustment
based on the market price of the Common Stock at the time of conversion,
exercise or exchange of such security into Common Stock (except for appropriate
adjustments made to give effect to any stock splits or stock dividends); or

              (iv) enter into (a) any equity line or similar agreement or
arrangement; or (b) any agreement to sell Common Stock (or any security
convertible, exercisable or exchangeable

<PAGE>

into shares of Common Stock ("Common Stock Equivalent")) at a per share price
(or, with respect to a Common Stock Equivalent, at a conversion, exercise or
exchange price, as the case may be ("Equivalent Price")) that is fixed after the
execution date of the agreement, whether or not based on any predetermined
price-setting formula or calculation method. Notwithstanding the foregoing,
however, a price protection clause shall be permitted in an agreement for sale
of Common Stock or Common Stock Equivalent, if such clause provides for an
adjustment to the price per share of Common Stock or, with respect to a Common
Stock Equivalent, to the Equivalent Price (provided that such price or
Equivalent Price is fixed on or before the execution date of the agreement)(the
"Fixed Price") in the event that the Company, during the period beginning on the
date of the agreement and ending no later than 90 days after the closing date of
the transaction, sells shares of Common Stock or Common Stock Equivalent to
another investor at a price or Equivalent Price, as the case may be, below the
Fixed Price.

          The Stock Option Plan and By-law Amendments may not be further amended
or repealed without the affirmative vote of the holders of a majority of the
shares present and entitled to vote at a duly convened meeting of shareholders.
Upon the adoption of the Stock Option Plan and By-law Amendments, the Company
shall promptly furnish a copy of such amendments to the Purchasers. The Company
agrees that, prior to the adoption of the Stock Option Plan and By-law
Amendments by all necessary corporate action of the Company as described above,
the Company shall not conduct any of the actions specified in (i), (ii), (iii)
or (iv) above of this Section 7.2.

8.       LEGAL FEES AND OTHER TRANSACTION EXPENSES

         At the Closing, the Company agrees to pay a flat fee of $5,000 to the
State of Wisconsin Investment Board for their legal and other transaction
expenses (whether internal or external) arising in connection with the
transactions contemplated by this Agreement.

9.       NOTICES

         All notices, requests, consents and other communications under this
Agreement shall be in writing, shall be mailed by first-class registered or
certified airmail, confirmed facsimile or nationally recognized overnight
express courier postage prepaid, and shall be delivered as addressed as follows:

         (a)      if to the Company, to:

                  Chief Executive Officer
                  Westell Technologies, Inc.
                  750 N. Commons Drive
                  Aurora, IL 60504

                  With a copy to:

                  Neal White
                  McDermott, Will & Emery
                  227 West Monroe Street
                  Chicago, Illinois 60606

<PAGE>

or to such other person at such other place as the Company shall designate to
the Purchaser in writing; and

         (b) if to a Purchaser, at its address as set forth on the signature
page to this Agreement, or at such other address or addresses as may have been
furnished to the Company in writing.

         Such notice shall be deemed effectively given upon confirmation of
receipt by facsimile, one business day after deposit with such overnight courier
or three days after deposit of such registered or certified airmail with the
U.S. Postal Service, as applicable.

10.      BROKER'S FEE

         Each of the parties to this Agreement hereby represents that, on the
basis of any actions and agreements by it, there are no brokers or finders
entitled to compensation in connection with the sale of the Shares to the
Purchaser. The Company shall indemnify and hold harmless the Purchaser from and
against all fees, commissions or other payments owing by the company to any
person or firm acting on behalf of the Company hereunder.

11.      MODIFICATION; AMENDMENT

         This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Purchaser.

12.      TERMINATION

         This Agreement may be terminated:

         (a) By the Company if the conditions set forth in Sections 3(c) are not
be satisfied or have not been waived on or before thirty (30) days from the date
of this Agreement.

         (b) By the Purchaser if the conditions set forth in Sections 3(d) are
not be satisfied or have not been waived on or before thirty (30) days from the
date of this Agreement.

13.      HEADINGS

         The headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be part of
this Agreement.

14.      SEVERABILITY

         If any provision contained in this Agreement should be held to be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained in this Agreement shall not
in any way be affected or impaired thereby.

15.      GOVERNING LAW; JURISDICTION

<PAGE>

         This Agreement shall be governed by and construed in accordance with
the laws of the state of Delaware and the federal law of the United States of
America.

16.      NO CONFLICTS OF INTEREST.

         The Company represents, warrants, and covenants that, to its knowledge,
no trustee or employee of the State of Wisconsin Investment Board identified on
the attached list, either directly or indirectly will, in connection with the
investment made pursuant to this Agreement, receive (i) a personal interest in
the Entity or the Entity's property or securities or (ii) anything of
substantial economic value for his or her private benefit from the Entity or
anyone acting on its behalf. As to ownership of an interest in the Entity's
publicly traded securities, "knowledge" hereunder is based on the actual
knowledge of the undersigned.

17.      COUNTERPARTS

         This Agreement may be executed in two or more counterparts, each of
which shall constitute an original, but all of which, when taken together, shall
constitute but one instrument, and shall become effective when one or more
counterparts have been signed by each party to this Agreement and delivered to
the other parties.

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

                                        WESTELL TECHNOLOGIES, INC.

                                        By:      /s/ Nicholas C. Hindman, Sr.
                                             -----------------------------------

                                        Name:    Nicholas C. Hindman, Sr.
                                               ---------------------------------

                                        Its:     Vice President and Secretary
                                              ----------------------------------

                                        STATE OF WISCONSIN INVESTMENT BOARD

                                        By:      /s/ John F. Nelson
                                             -----------------------------------

                                        Name:    John F. Nelson
                                               ---------------------------------

                                        Title:   Investment Director
                                                --------------------------------

                                        Address:

                                        121 East Wilson Street
                                        Madison, WI 53702
                                        Facsimile: (608) 266-2436

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]