Document:

PLACEMENT AGREEMENT

This Placement Agreement (the "Agreement") is entered into as of this ___ day of
January,  2000, by and between Berthel Fisher & Company Financial Services, Inc.
("Financial  Services"),  whose  address  is 100 Second Street SE, Cedar Rapids,
Iowa 52401, and Murdock Communication Corporation, ("Murdock" or the "Company"),
whose  address  is  1112  29th  Avenue  SW,  Cedar  Rapids,  Iowa,  52401.

     WHEREAS,  Murdock  desires  to  retain  Financial Services as its exclusive
placement  agent  to  procure,  on  a  best  efforts  basis,  subscriptions from
accredited  investors,  as  defined  in  Regulation  D  as  promulgated  by  the
Securities  Exchange  Commission ("SEC") pursuant to the Securities Act of 1933,
as  amended  (hereinafter  "Investors"  or  "Purchasers"  or  individually  an
"Investor" or a "Purchaser") in connection with several private placements which
will  be taking palace simultaneously, wherein, (1) it is contemplated Investors
will  purchase  Units  which  consist of (a) convertible Promissory Notes in the
principal  amount  of $50,000 which accrue interest at the rate of 12% per annum
and which are convertible into shares of the Company's no par value common stock
and  (b) 8,576 shares of ACTEL Integrated Communications Inc.("ACTEL") preferred
stock  at  $5.83  per  share if the Purchaser is an insider who is  converting a
previous  promissory note or 9,804 shares of ACTEL preferred stock, at $5.10 per
share,  if  the  Purchaser  is  not  an  insider  but  is  converting a previous
promissory  note,  or  if  the  Purchaser  is  purchasing  the  unit  and is not
converting  a  previous  promissory  note  ("Offering  Number 1"); and (2) it is
contemplated  Investors will purchase shares of ACTEL preferred stock ("Offering
Number  2") (hereinafter when referring to Offering Number 1 and Offering Number
2  collectively,  they  will  be  referred  to  as  the  ("Offerings"  or  the
"Securities");  and

     WHEREAS,  Financial  Services  desires  to  act  as the Company's exclusive
placement  agent  in  connection  with  the  Offerings;

     NOW  THEREFORE, in consideration of the premises and the mutual obligations
set  forth herein, receipt of which is hereby acknowledged, the parties agree as
follows:

I.     THE  SECURITIES:
       ----------------

The  Offerings  pertain  to  financings  for  the Company in the amount of up to
Twenty Million and 00/100 ($20,000,000.00) in connection with private placements
wherein  the  Investors  will  purchase  the  following:

     (a)     Offering  Number  1; Investors will purchase units which consist of
convertible  promissory  notes  in  the principal amount of $50,000 which accrue
interest  at  the rate of 12% per annum and which are convertible into shares of
no  par  value  common stock of the Company and 8,576 shares of ACTEL Integrated
Communications Inc.("ACTEL") preferred stock at $5.83 per share if the Purchaser
is  an  insider who is  converting a previous promissory note or 9,804 shares of
ACTEL preferred stock, at $5.10 per share if the Purchaser is not an insider but
is  converting a previous promissory note, or if the Purchaser is purchasing the
unit  and  is not converting a previous promissory note, together (the "Units");
and

<PAGE>
     (b)     Offering  Number  2;  Investors  will  purchase  shares  of  ACTEL
preferred  stock  at  $5.83  per  share.

II.     APPOINTMENT  OF  AGENT:
        -----------------------

     The  Company  hereby appoints Financial Services as its exclusive financial
advisor  for a period of eighteen months starting as of the date of execution of
this  agreement and additionally, the Company hereby appoints Financial Services
as  its  exclusive  placement  agent  ("Placement Agent") for the Offering.  The
appointment  shall  commence  upon  execution  of  this  Agreement,  however the
Placement  Agent  must  also  receive  properly completed offering circulars for
Offering  Number  1  and Offering Number 2 (the "Memorandum(s)") and shall end 6
months  following  said starting date, however, said appointment may be extended
upon  the  mutual  agreement of the parties for up to ninety days (the "Offering
Period").  The  Placement  Agent  will  commence each Offering upon receipt of a
"final"  memorandum  from  the  Company  (or ACTEL) for such Offering. Financial
Services accepts such appointment subject to the terms and conditions herein and
shall  on  a  best  efforts  basis  endeavor  to  procure  subscriptions for the
Securities  from  Purchasers  who  satisfy  the  Company  that  they  qualify as
Purchasers.   Financial  Services  shall continue as Agent until the termination
of  the  Offering  Period or as such Offering Period may be extended.  Financial
Services and Company shall agree as to the states in which the Securities are to
be  offered, provided, however, that Financial Services, at its sole discretion,
may  decline  to  offer  the  Securities  in  any  state.

     Subject  to  the observance of and performance by the parties hereto of all
their  obligations  to be observed and performed hereunder, and to the execution
and  delivery  by  Financial Services of a copy of this Agreement as hereinafter
provided,  Financial  Services  accepts  such  agency and agrees to use its best
efforts  during the Offering Period to procure subscribers for the Securities on
the terms and conditions set forth herein and in the Memorandums.  The agency of
Financial  Services  hereunder,  which  is  coupled  with  an  interest,  is not
terminable  by the Company without Financial Services' written consent or in the
event  of  a continuing material breach of this Agreement by Financial Services.
Further,  Financial  Services  may  cancel,  suspend  or  take  whatever  action
necessary  in  the event, Financial Services, in its sole discretion, determines
the  said cancellation and/or suspension is in the best interest of the Company,
Financial  Services  or  the  Purchasers.

III.     PRIVATE  PLACEMENT:
         -------------------

     The  Company  agrees  with  Financial  Services  that,  whether  or not the
transactions contemplated by this Agreement are consummated or this Agreement is
terminated,  the  Company and its officers, directors, agents and employees will
hold  the identity of Purchasers (and the persons to or from whom a subscription
to  Securities  was  offered  or  received,  as  the  case may be), by Financial
Services  in confidence, except to the extent required by the Company's dealings
with  governmental or self regulatory agencies, or as otherwise required by law,
it  being  understood that the agreement set forth in this sentence will survive
any  termination  or  expiration of the agency of Financial Services and of this
Agreement.

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     If  subscriptions for more than the total number of Securities are received
and  the  Company  does not elect to authorize additional Securities to be sold,
the  order  in  which subscriptions are accepted by the Company shall govern the
selection  of  Purchasers.

     The  Company  may  introduce Purchasers to Financial Services and Financial
Services  will  make  a  "best  efforts  basis" to procure executed Subscription
Agreements  from  these  investors.  Financial  Services will have the option to
introduce  Purchasers  to  the Company.  The Company and Financial Services both
agree, they each, in their sole discretion, have the right to reject any and all
proposed  purchasers  of  the  Securities  for  any  reason.

     Financial  Services,  may,  at  its sole option elect to employ one or more
brokers  and/or  Broker Dealers in order to form a Selling Group, so long as all
members  of  the Selling Group are duly registered under the Securities Exchange
Act of 1934, as amended  (the "1934 Act") and are in compliance with all aspects
of  the  1934  Act  and  the  NASD  Conduct  Rules.

IV.     CLOSING:
        --------

     An  Initial  Closing for the sale of Securities shall be held at the office
of  Financial  Services,  or  at  such  other  place as the parties hereto shall
mutually  agree.  Thereafter there may be additional closings as mutually agreed
to from time to time by the parties (the Initial Closing and subsequent closings
collectively  herein  a  "Closing")  and  all  Closings  shall be subject to the
disbursement  of  funds  as set out in Section V below, (the "Initial Closing").

V.     ESCROW  AGREEMENT:
       ------------------

     All  proceeds subscribed to and received as a result of the Offerings shall
be  deposited  into  an account (the "Escrow Account") pursuant to an acceptable
Escrow Agreement to be entered into between the Company, the Placement Agent and
an  Escrow  Agent.  As a result of either Offering Number 1 or Offering Number 2
or  as  a  combination of the sales from both Offerings, the minimum amount that
must  be  obtained  and  deposited  into  the Escrow Account is Two Million Five
Hundred  Thousand and 00/100 Dollars, ($2,500,000.00), (the "Minimum"), and such
Minimum  must  be  deposited  on or before May 31, 2000.  In the event that less
than  the  Minimum  is raised by the Placement Agent, then all funds received by
the  Placement  Agent  and deposited into the Escrow Account will be returned to
such  Purchasers  with  such  interest or earnings as have actually been earned.
When  the  Minimum  has  been  raised,  the  funds in the Escrow Account will be
released  pursuant  to  a  written  request  by both the Placement Agent and the
Company.

VI.     COMPENSATION:
        -------------

     As compensation for Financial Services' services, the Company hereby agrees
to  pay  Financial  Services  as  follows:

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<PAGE>
     (a)     As  partial  payment  for  its  services  prior to the date of this
Agreement,  Berthel  acknowledges  receipt of payment of Thirty Thousand Dollars
($30,000).  In  addition  the  Company  will  pay  to  Placement Agent a monthly
retainer  fee equal to Fifteen Thousand Dollars ($15,000) with the first payment
due  on  January  15, 2000 and an additional monthly payment of Fifteen Thousand
Dollars  ($15,000)  due  on the 15th of each subsequent month during the term of
this  Agreement  (the  "Monthly  Retainer  Fees").

     (b)     At each Closing and upon the receipt by the Company of the proceeds
of  the  Offerings,  the  Company shall pay the Placement Agent as follows:  (i)
Offering  Number  1-  A  Private  Placement  Fee of 5% of the amount raised as a
result  of the sale of the Units, however, as relates to the sale of Units which
are  the  result  of  conversion  of  existing debt by insiders, officers and/or
directors  (the "Insiders"), which because of the size of the Insider's existing
debt,  the  amount  to be converted may or may not equate to an entire Unit, the
Placement  Agent  will  be paid a fee equal to 2% of the value of the Promissory
Notes  which  are a part of each Unit converted to by the Insiders and 3% of the
value  of  the  ACTEL  stock  which  are a part of each Unit converted to by the
Insiders;  and  Offering Number 2- a Private Placement Fee of 3% of the value of
the  ACTEL  stock  which is sold as part of the Offering; and, (ii) as a part of
Offering  Number  1  and  Offering  Number  2,  the  Company  will  issue to the
Placement  Agent  Warrants  for shares of common stock equivalent to ten percent
(10%)  of  the  equity or subordinated debt securities raised by Placement Agent
(the  "Warrants")  and the Placement Warrants shall be priced at one hundred ten
percent (110%) of the market price of the Company common stock as of the Closing
date  when  the  Warrants  were issued and will be exercisable for a minimum for
five  years from the date of issuance to the Placement Agent.  The parties agree
that  the price of and the number of Warrants issued to the Placement Agent will
be  adjusted  proportionately  if  necessary,  in  the event the Warrants do not
convert  into  common  stock on a one to one basis.  The Warrant to be issued at
the  time  of  Closing will contain terms and conditions normally contained in a
Warrant  of  this  type  and  size.  The Warrant may be transferable at the sole
discretion  of  the  Placement  Agent  subject  to  compliance  with  applicable
Securities  laws.

     (c)     The  Company  shall  pay  to Placement Agent a fee of three percent
(3%)  on  the  sale  of  any  assets  or  subsidiaries  of the company (with the
exception  of  the  sale of the PIC/ATN subsidiary to ACTEL), and a fee equal to
One Hundred Thousand Dollars ($100,000) for producing a fairness Opinion for the
sale  of  any individual Company assets or subsidiaries (including such sales to
affiliates).

     (d)     Upon  the  closing of any Merger wherein the Company merges with or
sells  to  another  entity  (including  specifically,  but  without  limitation,
Flower.com)  in  a  transaction  involving  either  a  stock  or  asset purchase
transaction, the Company shall pay Placement Agent a Success Fee for a completed
merger or sale, in whole or in part, calculated as a percentage of the Aggregate
Merger  or  Sale  Price  according to the following schedule: 5% of the first $1
Million,  4%  of  the  second  $1 Million, 3% of the third $1 Million, 2% of the
fourth $1 Million and 1% above $4 million of the Aggregate Merger or Sale Price.
As  used  in herein, the term Aggregate Merger or Sale Price shall be defined as
the present value of the sum of consideration paid by the Acquiror to or for the
Company  or  its  shareholders  including  (i) cash, (ii) the face amount of any
installment  notes, (iii) the amount of any debt, including long-term or current
debt  issued  in  connection  with

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<PAGE>
the  transaction,  (iv) the balance of any debt assumed by the Acquiror, (v) the
fair  market  value of equity or any equity interest(s) issued to the Company or
its  shareholders,  and  (vi) the value of any subsequent or contingent payments
including,  but  not  limited  to,  earnouts, non-compete payments and any other
compensation  paid.  For  earnouts  and  other  payments  that  are  not readily
ascertainable at closing, Placement Agent will be due its applicable Success Fee
as those amounts are paid, unless otherwise mutually agreed upon by both parties
to  this  Agreement.

     (e)     If  Financial  Services  employs  a selling group, any compensation
paid  to  said selling group shall be paid by Financial Services and all members
thereof  shall  be  registered  broker-dealers.

     (f)     Whether  or  not  a  Closing  takes  place,  the  Company agrees to
reimburse  Financial  Services  for  all  reasonable and customary out-of-pocket
expenses  incurred  by Financial Services as a result of its activities as Agent
for  Murdock,  including  but not necessarily limited to all due diligence, road
shows,  travel,  mailing, legal counsel, accounting, Blue Sky fees, registration
fees,  printing  and  marketing  expenses.  Such  expense reimbursement shall be
payable  as  billed  by  Financial  Services.

          Notwithstanding  the  foregoing, if the total amount paid to Financial
Services  pursuant  to this Article exceeds the amount permitted by the laws and
regulations  of  any  state  in  which  the  Shares  are offered (the "Permitted
Compensation"),  Financial  Services  agrees to delay receipt of such fees until
the  payment  of  Agent's  compensation  is  less  than  or equals the Permitted
Compensation,  and  if  the  Agent's  compensation  to  be paid pursuant to this
agreement  exceeds  at  the  final  Closing the Permitted Compensation, then the
excess  over  Permitted  Compensation  shall  be  waived.

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<PAGE>
VII.     REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  OF  THE  COMPANY:
         ---------------------------------------------------------------

The  Company  warrants  and  agrees  as  follows:

     (a)     (i)  The Company has authorized and reserved a sufficient number of
shares  of  Common  Stock  for  issuance  in  connection  with  the  Offering.

          (ii)  Prior  to the sale of the Securities to any Offeree, pursuant to
Offering  Number  1, such Offeree or any person advising such Offeree shall: (i)
be  furnished  by  the  Company,  a  copy  of Memorandums containing information
regarding  the Company and its business, and (ii) be given an opportunity to ask
questions  and  receive  answers  from  the  Company, its officers and directors
concerning  the  terms  and conditions of an investment in the Securities and to
obtain  any  additional information which the Company possesses or could acquire
without unreasonable effort or expense that was necessary to verify the accuracy
of  any  information  furnished  to  the  investor.  Prior  to  the  sale of the
Securities  to  any  Offeree pursuant to Offering Number 2, the Offeree shall be
furnished  with  a  copy  of  the  Memorandum  for  Offering  Number  2.

          (iii)     The  Memorandums  relating  to  Offering  Number  1,  the
subscription  documents, and any other material the Company formally approves as
offering  materials  will constitute all of the offering materials in connection
with the Offering Number 1 (collectively the "Company Information") and will not
contain any untrue statement of a material fact or omit to state a material fact
necessary  to  make  the  Company  Information not misleading.  The Company will
deliver  to Financial Services at its above address such number of copies of the
Memorandums  (and any amendment thereto) and any additional mutually agreed upon
material,  prepared  by  the  Company and approved by Financial Services and its
counsel  as  aforesaid,  as Financial Services shall reasonably request.  To the
knowledge  of the Company, the Memorandum for Offering Number 2 does not contain
any  untrue  statement  of  a  material  fact  or  omit to state a material fact
necessary  to  make  the  Information  not  misleading.

     (b)     During  the  Offering  and  at  all  times at or prior to the final
Closing,  the  Memorandums, and all supplements and amendments thereto, will not
contain  an untrue statement of a material fact or omit to state a material fact
necessary  in  order  to  make the statements therein, in light of circumstances
under  which  they  were  made,  not  misleading.

     (c)     If  during  the  Offering  Period or at any time at or prior to the
Closing  any event relating to or affecting the Company or any other event shall
come  to  the attention of the Company as a result of which it would or might be
appropriate  to  amend  or  supplement  the  Memorandums  in  order  to make the
statements  therein,  in  light of the circumstances under which they were made,
not  misleading,  the Company will notify Financial Services immediately of such
event and, if Financial Services' counsel and counsel for the Company are of the
opinion that it is necessary to amend or supplement the Memorandums, the Company
will  forthwith prepare and furnish to Financial Services a reasonable number of
copies  of  an  amendment or amendments of, or supplement or supplements to, the
Memorandums  which  will  so  amend  or supplement the Memorandums, and the same
shall  be  satisfactory  in  form  and  substance  to Financial Services and its
counsel.  The  Company  will  promptly  furnish  to  Financial  Services  such
information with respect to the Company or the Memorandums as Financial Services
may  from  time  to  time  reasonably  request.

                                        6
<PAGE>
     (d)     The  Company  shall furnish or make available to Financial Services
and its agents any and all documentation and information reasonably requested by
Financial  Services.

     (e)     The  Company  shall  not,  within  a period of six (6) months after
completion  of the last sale of Securities contemplated herein offer or sell any
Securities,  in  transactions which might be deemed a part of the offer and sale
of  Securities  for  purposes  of  the  1933  Act unless the Company delivers to
Financial  Services,  an  opinion of counsel satisfactory to Financial Services,
regarding  whether  the  securities offered or sold or the offer or sale of such
securities  did  not  or  will  not  violate  any  securities  laws.

     (f)     The  Company  and its agents, affiliates and employees (i) have not
taken  or  failed to take any action, whether in connection with the Offering or
otherwise,  which  action or failure to act conflicts or would conflict with, or
otherwise  make  unavailable,  the  exemption  for  the Offering and sale of the
Securities  from the registration provision of the 1933 Act afforded by the 1933
Act,  and  (ii) will not at any time, either directly or indirectly, sell, offer
for  sale,  solicit  offers  to  subscribe  for or buy, or otherwise approach or
negotiate  in  respect  of,  the Securities or any other interest in the Company
prior  to  or  during  the  Offering  Period,  except  as  provided  for in this
Agreement,  if  such  activity  would  or  might cause the Offering contemplated
hereby  to  be  not  exempt  from  the  registration  provisions of the 1933 Act
pursuant to the 1933 Act, or to violate the securities or 'blue sky' laws of any
state  or  other jurisdiction which Financial Services shall designate as one in
which  Financial  Services  or  any broker/dealer employed by Financial Services
intends  to  sell  the  Securities  or  offer  the  Securities  for  sale.

     (g)     All  actions required to be taken at or prior to the Closing by the
Company  as  a  condition  to  the offer and sale of the Securities to qualified
subscribers  have  been  taken or will have been taken prior to the Closing; and
upon  (i) payment of the purchase price specified in each subscription agreement
and  acceptance  of  each  subscription  agreement  by the Company, and (ii) the
execution  and delivery by each subscriber of such additional documents, if any,
as  may  reasonably  be  requested  by  the  Company  or  as  set  forth  in the
Memorandums,  Securities  will be issued or sold to each subscriber as set forth
in  the  Memorandums.

     (h)     The  Company  is  duly  incorporated,  validly existing and in good
standing  under  the  laws of the State of Iowa with full power and authority to
conduct  its  business as it is currently being conducted and to own its assets.
The  Company  is  duly qualified to do business as a foreign corporation in good
standing  in  each  other  jurisdiction  where such qualification is required by
virtue  of  the  conduct  of  the Company's business or ownership of its assets,
except  where  the  failure to be so qualified would not have a material adverse
effect  on  its business or properties; and has secured, or is in the process of
securing,  any  other  authorizations, approvals, permits and orders required by
law  for  the  conduct  by  the Company of its business as it is currently being
conducted.

     (i)     The  Company  will  use  its  best  efforts,  in  cooperation  with
Financial  Services,  promptly to establish the exemption of the Securities from
qualification  or  registration, under the securities or "blue sky" laws of such
states  and  jurisdictions as Financial Services may designate as those in which
Financial  Services  or  any  broker/dealers  employed by it intends to sell, or
offer for sale, the Securities; it will furnish Financial Services' counsel with
copies  of  all  written  communications  and  documentation,  whether  sent  or
received,  with  regard  to the foregoing and the Company will pay all costs and
expenses  incurred  in  connection  with  the  foregoing.

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<PAGE>
     (j)     Except  as  may  be  otherwise  prohibited by applicable "blue sky"
laws,  the  Company  will  make  available  to Financial Services, and Financial
Services  is  authorized  on  behalf  of  the  Company to make available to each
Purchaser  and his representatives with respect to this investment, prior to the
sale  of  Securities to such Purchaser, the opportunity to ask questions of, and
receive  answers  from  the  Company  concerning  the  Company, or the terms and
conditions  of  the Offerings which the Company possesses or can acquire without
unreasonable  effort  or expense that is necessary to verify the accuracy of the
information  contained  in the Memorandums and of any other information referred
to  herein.

     (k)     The  Company  will use its best efforts to meet and/or maintain all
requirements,  established  by  the U.S. Congress, the Internal Revenue Service,
any  agency  of  the federal government or the federal or state courts necessary
for  the  classification  of  the  Company for federal income tax purposes to be
taxable  as  a  corporation.

     (l)     The  Company  will  complete,  execute,  deliver  and file with the
Securities  and  Exchange  Commission  such  copies  of  Form D, satisfactory to
Financial  Services  and its counsel in form and substance, as and when required
by  Regulation  D,  if  it  is  determined  that  Regulation  D is available and
applicable  for  either  of  the  Offerings.

     (m)     For  a  period  of  five (5) years following the final Closing, the
Company  will  deliver  to Financial Services, all internal financial statements
and/or  any additional financial information generally provided to the Company's
Board  of Directors, lending institutions and/or any other party, other than the
Company's  executive  officers.  In  the  event  the  Company  should  become  a
reporting  Company,  the Company shall simultaneously provide Financial Services
with all financial information which it normally provides to its Shareholders in
lieu  of  the  information  required  by  the  first sentence of this paragraph.

     (n)     The Common Stock of the Company, when issued upon conversion of the
Notes,  will  represent  validly  authorized,  duly  issued  and  fully paid and
non-assessable shares of the Company, and the issuance thereof will not conflict
with  the  Articles  of  Incorporation  or  Bylaws  of  the Company nor with any
outstanding  warrant,  option, call, pre-emptive right or commitment of any type
relating  to  the  Company's  capital  stock.

     (o)     There  is  no  litigation  or  governmental  proceeding  pending or
threatened  against  the Company which would materially and adversely affect the
business or financial condition of the Company.  All litigation to which Murdock
is  a  party  is  set  forth  in  schedule  VII  (o)  attached  hereto.

     (p)     Except  as set out on Schedule VII (p) attached hereto, the Company
is  not  in  material default in the performance of any obligation, agreement or
condition  contained  in  any  agreement  of  the Company, and the execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby  will  not  conflict with, or constitute a breach of or default under the
Company's Articles of Incorporation or Bylaws, any material agreement, indenture
or  instrument  by  which the Company is bound, or any law, administrative rule,
regulation  or  decree  of  any court or any governmental body or administrative
agency  applicable  to  the  Company.

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<PAGE>
     (q)     The  Agreement  has  been duly and validly authorized, executed and
delivered  by  or  on  behalf  of  the  Company  and,  except  insofar  as  the
enforceability  of  the  indemnification  provisions  herein  may  be subject to
challenge,  constitutes  the valid and legally binding agreement of the Company.

VIII.     CONDITIONS  OF  THE  COMPANY'S  OBLIGATIONS:
          --------------------------------------------

     The  obligations  of  the  Company  are  subject  to  the  accuracy  of and
compliance with Financial Services' representations, warranties and covenants in
all  material  respects, to the observance and performance by Financial Services
of  its  obligations  hereunder  in  all material respects, and to the following
further conditions (any of which may be waived in writing in whole or in part by
the  Company). If any of the conditions specified in this Section shall not have
been  fulfilled  when and as required by this Agreement to be fulfilled, all the
obligations  of the Company under this Agreement may be terminated in writing or
by  telegram  at  any  time  at  or  prior  to  the  Closing.

     (a)     At  the  Closings,  the  Company  may  request  Financial Services'
certificate,  dated  the date of the Closings, (i) as to the number of investors
to  whom Financial Service and all broker/dealers employed by Financial Services
sold  Securities,  (ii)  as  to the  number of persons, listed by state, to whom
Financial Services shall have made offers to subscribe for Securities, from whom
offers  to  subscribe  for or buy Securities shall have been received, and (iii)
stating  that the representations and Warranties of Financial Services contained
herein are true and correct with the same effect as though made expressly at and
as  of  the  time  of  Closing.

     (b)     Financial  Services  shall  not  have  taken  or failed to take any
action,  at  any  time  at or prior to the Closing, which, in the opinion of the
Company  conflicts  or  would conflict with, or otherwise makes unavailable, the
exemption  for  the  offering  and  sale of the Securities from the registration
provisions  of  the  1933  Act  afforded  by  the  1933  Act.

IX.     REPRESENTATIONS,  WARRANTIES  AND  COVENANTS  OF  FINANCIAL  SERVICES:
        ----------------------------------------------------------------------

     Financial  Services  represents and warrants to and agrees with the Company
as  follows:

     (a)     Financial Services is duly registered under the Securities Exchange
Act  of  1934  (the "1934 Act"), is a member in good standing of the NASD, is in
compliance  with  all  rules  and  regulations  under  the 1934 Act and the NASD
Conduct  Rules and is duly registered as a broker/dealer in every state in which
it  intends  to  offer  or  sell  the  Securities.

     (b)     Prior  to  the  date  hereof,  Financial Services and its officers,
agents  and  employees  have  not taken or failed to take any action, whether in
connection with the aforesaid solicitation or otherwise, which action or failure
to  act  conflicts  or  would  conflict  with,  sale  of the Securities from the
registration  provisions of the 1933 Act afforded by the 1933 Act; and hereafter
they  will  not,  either  directly  or indirectly, sell, offer for sale, solicit
offers  to  subscribe  for or buy, or otherwise approach or negotiate in respect
of,  the  Securities or any other interest in the Company prior to or during the
Offering  Period,  except  as  provided  for  in  this  Agreement.

                                        9
<PAGE>
     (c)     Financial  Services  is  not  subject  to  any  disqualification
provisions  of  Rule  262  of  Regulation  A.

     (d)     This  Agreement  has been duly and validly authorized, executed and
delivered  by  and  on  behalf  of Financial Services and, except insofar as the
enforceability  of  the  indemnification  provision  herein  may  be  subject to
challenge,  constitutes  the  valid  and  legally binding agreement of Financial
Services.

     (e)     The  execution  and  delivery of this Agreement, the observance and
performance hereof, and the consummation of the transactions contemplated herein
and  in  the  Memorandums,  does  not  and  will not constitute a breach of or a
default under, any instrument or agreement by which Financial Services is bound,
and  does  not  and  will  not  contravene  any  existing  law,  decree or order
applicable  to  Financial  Services.

     (f)     Financial  Services will not make an offer or sale of Securities on
the  basis  of  any  communications  or documents relating to the Company or the
Securities,  except  the  Memorandums  and the exhibits thereto, other documents
supplied  or prepared by the Company and delivered to Financial Services for use
in making an offer or sale of Securities, and any cover or transmittal letter in
respect  of  the  foregoing.  Financial  Services  will conduct the Offerings in
compliance  with  all applicable federal and state securities laws and Financial
Services  will  not  make  any  general  advertisement  or  general solicitation
(including  communications published in any newspaper, newsletter, magazine, the
Internet,  or  other  broadcast)  in  connection  with  the  Offerings.

     (g)     Financial  Services  will  offer  and  sell  Securities  only  to
accredited  Investors,  as  defined  in Rule 501 promulgated under the 1933 Act.

     (h)     In making any offer or sale of Securities, Financial Services shall
comply  with the provisions of the 1933 Act, the 1934 Act, and the securities or
"blue sky" laws of the jurisdictions in which Financial Services makes offers or
sales  of  Securities.

     (i)     Financial Services will exercise reasonable care to assure that the
Purchasers  to whom it offers Securities are not underwriters within the meaning
of  Section  2(l1)  of the 1933 Act. In that connection, Financial Services will
make  reasonable  inquiry  to  determine  that  the  Purchaser  is acquiring the
Securities  for  his,  her  or  its  own  account  for  investment  purposes.

X.     CONDITIONS  OF  FINANCIAL  SERVICES'  OBLIGATIONS:
       --------------------------------------------------

     Financial  Services'  obligations  hereunder are subject to the accuracy of
and  compliance  by  the  Company with representations, warranties and covenants
herein  of  the  Company,  in  all  material  respects,  to  the  observance and
performance  by  the  Company  of  its  obligations  hereunder,  in all material
respects,  and  under  the  Memorandums, and to the following further conditions
(any  of  which  may  be  waived  in  writing  in  whole or in part by Financial
Services):

                                       10
<PAGE>
     (a)     After  each  Closing,  Financial  Services  may  request in writing
certificates  dated  the day of the Closing, signed by the Company to the effect
that all representations and warranties of the Company contained herein are true
and  correct with the same effect as though made expressly at and as of the time
of  the  Closing.

     (b)     Financial  Services'  counsel  shall  have been furnished promptly,
upon  written  request,  such  instruments  and  other  documents  as  they  may
reasonably  require  for  the purpose of enabling them to pass upon the sales of
the  Securities  as  herein contemplated and related proceedings and in order to
evidence  the  accuracy  and  completeness of any and all the representations or
warranties,  or  the  fulfillment of any and all of the conditions, contained in
this  Agreement  or  in  the  Memorandums,  and  all  such instruments and other
documents  shall  be  reasonably  satisfactory  in  form  and  substance to such
counsel;  all  actions  taken  by the Company in connection with the sale of the
Securities  as herein contemplated shall be reasonably satisfactory to Financial
Services and its counsel; and the Memorandums (and any supplements or amendments
thereto)  shall,  at  all  times  during  the Offering Period and at the time of
Closing,  be reasonably satisfactory in form and substance to Financial Services
and  its  counsel.

     (c)     Prior  to  each  Closing,  the  Company  agrees  to  deliver to the
Placement  Agent  an opinion of the Company's counsel reasonably satisfactory in
form  and substance to the Placement Agent and its counsel, dated as of or prior
to  the  date  of  the  Closing,  to  the  effect  that:

          (i)     The  Company  is  a  corporation  duly  incorporated,  validly
existing  and  in  good  standing  under  the  laws  of  the State of Iowa, with
corporate  power  to  carry  on  the  business  described  in  the  Memorandums.

          (ii)     The Execution and delivery of this Agreement and the issuance
of  the  Securities  will  not  violate  or  conflict  with  the  Articles  of
Incorporation or By laws of the Company, or any material agreement known to such
counsel  to  which  the  Company  is  a  party.

          (iii)     This  Agreement  has  been  duly authorized by all requisite
corporate  action,  executed  and  delivered  by  the Company, and constitutes a
valid,  binding and enforceable obligation of the Company in accordance with its
terms,  except  as  rights  of indemnity thereunder may be limited by federal or
state  securities  laws and enforcement may be limited by applicable bankruptcy,
insolvency,  moratorium  or  similar laws generally affecting the enforcement of
creditors'  rights  or  by  judicial  limitations  on  the  right  of  specific
performance.

          (iv)     Similar  opinions as related in paragraphs (b) and (c) above,
regarding  the  Escrow  Agreement.

          (v)     With  the  exception of the sale of the ACTEL shares which are
sold  as a part of Offering Number 1 and Offering Number 2, the Securities, when
executed  and  delivered  by  the  Company,  have  been duly authorized and will
constitute  valid,  binding  and  enforceable  obligations  of  the  Company  in
accordance  with their respective terms, except as enforcement may be limited by
applicable  bankruptcy,  insolvency,  moratorium  or  similar  laws  generally
affecting the enforcement of creditors' rights or by judicial limitations on the
right  of  specific  performance.

                                       11
<PAGE>
          (vi)     To  the  best  of  its  knowledge,  such  counsel knows of no
litigation  or governmental investigation against the Company except as shown as
Schedule  VII  (o).

          (vii)     Based on the assumption that the Securities are only sold to
Accredited  Investors,  and  that  the Company is not an affiliate of ACTEL, the
Offerings  and particularly the sale of the ACTEL Preferred Stock will be exempt
from  registration  under  any  federal  securities  laws.

     (d)     If  any  of the conditions specified in this Section shall not have
been  fulfilled  when  and  as  required  by this Agreement to be fulfilled, all
Financial Services obligations under this Agreement may be terminated in writing
or  by  telegram  at  any  time  at  or  prior  to  the  Closing.

XI.     NOTICE:
        -------

     Except  where otherwise herein provided, all notices, information, consents
and  other  communications  required  or  permitted  by  the  provision  of this
Agreement  to  be  given  or sent by any party, shall be in writing and shall be
deemed  to  be  properly  given  when:  (i)  delivered  personally to any of the
hereinafter  designated  addresses  or  the  named representatives thereof; (ii)
mailed  by prepaid certified or registered mail, return receipt requested; (iii)
when  sent  by  prepaid telephone facsimile, telegram, cable or telex; (iv) when
sent  for  overnight  delivery  by  recognized  commercial  carrier; and in each
instance  addressed  to  such  party  at  the  respective  address  as  follows:

          IF  TO  THE  COMPANY:
          ---------------------

          Murdock  Communications  Corporation
          1112  29th  Avenue  SW
          Cedar  Rapids,  IA  52404

          IF  TO  FINANCIAL  SERVICES:
          ----------------------------

          BERTHEL  FISHER  &  COMPANY  FINANCIAL  SERVICES,  INC.
          100  Second  Street  SE
          P.O.  Box  74250
          Cedar  Rapids,  Iowa  52407-4250
Attention:  Thomas  J.  Berthel

     Either party may at any time change its respective designated address above
by  giving  notice  thereof  to  the  other  parties  hereto.

XII.     INDEMNIFICATION:
         ----------------

     (a)     The  Company  agrees  to  indemnify  and  hold  harmless  Financial
Services,  and each person, if any, who controls Financial Services, and each of
Financial  Services'  officers,  directors,  agents  and  employees:

                                       12
<PAGE>
          (1)     against any and all loss, liability, claim, damage and expense
whatsoever  arising out of a breach by the Company of any of its representations
and  warranties  and  covenants herein or out of any untrue statement or alleged
untrue statement of a material fact contained in the Memorandums or any document
filed  with  the  securities  agency  of  any state or other jurisdiction or the
omission  or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading, except to the extent that such untrue statement or alleged
untrue statement or omission or alleged omission is made in reliance upon and in
conformity  with  written  information  furnished  by  Financial Services or its
affiliates,  officers,  directors, agents, employees or counsel specifically for
use with reference to Financial Services or its affiliates in the preparation of
the Memorandums or any document filed with the securities agency of any state or
other  jurisdiction;

          (2)     against any and all loss, liability, claim, damage and expense
whatsoever  to  the  extent  of  the  aggregate amount paid in settlement of any
litigation,  commenced or threatened, or of any claim whatsoever, based upon any
breach  or  untrue  or  alleged untrue statement or omission or alleged omission
referred  to  in  paragraph  (1)  above, if such settlement if effected with the
written  consent  of  the  Company;  and

          (3)     against  any  and  all  expense  whatsoever  incurred  in
investigating,  preparing  or  defending  against  any  litigation, commenced or
threatened,  or  any claim whatsoever, based upon any breach or untrue statement
or  omission, or any alleged untrue statement or omission, referred to above, to
the  extent  that  any  such  expense  is  not  paid  as  provided  above.

     (b)     Financial  Services  agrees  to  indemnify  and  hold  harmless the
Company,  each  of  its directors, officers, agents and each person who controls
the  Company  within  the  meaning  of Section 15 of the Act against any losses,
claims,  damages,  or  liabilities to which the Company or any such director, or
controlling  person  may become subject, under the Act, the 1934 Act, the common
law,  or  otherwise, insofar as such losses, claims, damages, or liabilities (or
actions  in  respect  thereof)  arise out of, or are based upon(i) any breach by
Financial  Services  of  any  of  its  representatives, warranties and covenants
herein,  (ii)  any  untrue  statement  or alleged untrue statement of a material
fact  contained  in the Memorandums or any amendment thereof, or the omission or
alleged  omission  to  state  in  the  Memorandums  or  any amendment thereof or
supplement  thereto,  a material fact required to be stated therein or necessary
to  make the statements therein not misleading; or (iii) any untrue statement or
alleged  untrue  statement  of  a  material fact contained in any application or
other  statement  executed  by the Company or by Financial Services and filed in
any  jurisdiction  in  order  to  obtain  an exemption from registration for the
Securities or the sale thereof from the securities laws of such jurisdiction, or
the  omission  or  alleged  omission to state in such application or statement a
material  fact required to be stated therein or necessary to make the statements
therein,  in  light  of  the  circumstances  under  which  they  were  made, not
misleading;  in  each  case  of  (ii) or (iii) above to the extent, but only the
extent, that such untrue statement, or alleged untrue statement, or omission, or
alleged  omission,  was  made  in  reliance  upon and in conformity with written
information  furnished to the Company by, or on behalf of, Financial Services in
writing  specifically  for  use  in  the  preparation  of the Memorandums or any
amendment  thereof  or  supplement  thereto,  or  in  any  application  or other
statement  executed  by  the  Company  or by Financial Services and filed in any
jurisdiction; and will reimburse any legal or other expenses reasonably incurred
by  the  Company  or  any such director or controlling person in connection with
investigating  or  defending  against any such loss, claim, damage, liability or
action.  This  indemnity  agreement  is  in addition to any liability, which the
Agent  may  otherwise  have.

                                       13
<PAGE>
     (c)     Within  a  reasonable time after the assertion of any claim against
any  party hereto (or any person who controls such party) in connection with the
Offering  or  sale of the Securities, such party shall give notice of such claim
to  the  other  parties hereto.  A contributor under this Section shall have the
right  to  participate,  at such party's own expense and through counsel of such
party's  own choosing, in contesting and defending against any such claim and in
any litigation, proceedings or settlement negotiation with respect thereto.  The
indemnity  set  forth in this Section shall be in addition to any liability that
either  of  the  parties  hereto  may  otherwise  have.

     (d)     The  indemnity  agreement  contained  in paragraph XII herein shall
remain  operative  and in full force and effect regardless of any termination of
the  Agreement  or  of  any investigation made by or on behalf of the Company or
Financial  Services,  and  shall  survive  the  delivery  of and payment for the
Securities.

XIII.     REPRESENTATIONS,  WARRANTIES  AND  AGREEMENTS  TO  SURVIVE  CLOSING:
          --------------------------------------------------------------------

     All representations, warranties, covenants and agreements contained in this
Agreement  or  contained in certificates submitted pursuant thereto shall remain
operative  and in full force and effect, regardless of any investigation made by
or  on  behalf  of  Financial  Services  or  any  person  who controls Financial
Services,  or  by  or  on  behalf of the Company, or any person who controls the
Company  and  shall  survive  the  Closing.

XIV.     PARTIES:
         --------

     This  Agreement shall inure to the benefit of and be binding upon Financial
Services,  the  Company, and their respective successors, this Agreement and the
conditions and provisions hereof being intended to be and being for the sole and
exclusive  benefit  of  no other person, except as otherwise herein specifically
provided.

XV.     GOVERNING  LAW:
        ---------------

     This  Agreement shall be governed by, and construed in accordance with, the
laws  of  the  State  of  Iowa applicable to agreements made and to be performed
wholly  within  such  state.

XVI.     COUNTERPARTS:
         -------------

     This  Agreement  may  be executed in a number of counterparts, all of which
together shall for all purposes constitute one Agreement, binding on all parties
notwithstanding  that  all  parties  have  not  signed  the  same  counterpart.

                                       14
<PAGE>
XVII.     MISCELLANEOUS:
          --------------

     All  titles  or  captions  of Sections contained herein are for convenience
only  and  shall  not  be deemed a part hereof.  All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, neuter, singular or
plural,  as  the  identity  of  the  person or persons or entity or entities may
require.  The  terms  "person"  and  "persons"  shall  include  reference  to
individuals,  partnerships,  corporations, trusts and other entities.  The terms
"law"  and  "laws"  shall include, without limitation, any rules and regulations
promulgated  under  a statute.  Any payment of a sum to be made hereunder by the
Company  to  Financial Services shall be made by a check payable to the order of
Financial  Services.

XVIII.     ADVISORY  AGREEMENT  TERMINATED:
           --------------------------------

     The December 1999 financial advisory agreement executed between the Company
and  Financial  Services  is  hereby  terminated  in  its  entirety.

XIX.     TERMINATION:
         -----------

     This  engagement  may be terminated by the Company or by Financial Services
at  any  time  after  180 days with or without cause upon written notice to that
effect  to  the  other  party,  but  no  such termination shall affect Financial
Service's  rights  to  compensation  earned on or prior to such termination, and
Financial Services shall be entitled to reimburse of any reasonable expenses not
previously reimbursed.  Financial Services shall be entitled to the compensation
hereinafter  provided  in  the event that at any time prior to the expiration of
eighteen months after expiration or termination of this Agreement a Financing or
Merger is consummated (I) with a lender/investor or merger partner introduced to
the  Company  by  Financial  Services  or contacted by Financial Services or the
Company  during the term of this Agreement or (ii) as a result of the use by the
Company  of  materials  or  other  work  product prepared by Financial Services.

     IN  WITNESS  WHEREOF,  both parties hereto execute this Agreement as of the
day  and  date  stated  above.

BERTHEL  FISHER  &  COMPANY                      MURDOCK  COMMUNICATIONS
FINANCIAL  SERVICES,  INC.                       CORPORATION

By:                                              By:
     ---------------------------------------        ----------------------------
     Thomas  J.  Berthel
     President  and  Chief  Executive  Officer      Chief  Financial  Officer

                                       15NEITHER THIS NOTE, NOR THE COMMON STOCK INTO WHICH IT MAY BE CONVERTED, HAS BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY
STATE  SECURITIES  ACT, AND HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW
TO,  OR FOR SALE IN CONNECTION WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING
OF  THE 1933 ACT.  NEITHER, THIS NOTE, NOR THE COMMON STOCK INTO WHICH IT MAY BE
CONVERTED,  MAY  BE  TRANSFERRED,  PLEDGED,  HYPOTHECATED  OR OTHERWISE ASSIGNED
UNLESS  REGISTERED  UNDER  THE  1933 ACT AND APPLICABLE STATE SECURITIES LAWS OR
UNLESS  THE  COMPANY  SHALL  HAVE  RECEIVED  AN  OPINION  OF  COUNSEL REASONABLY
SATISFACTORY  TO THE COMPANY THAT NO VIOLATION OF THE REGISTRATION PROVISIONS OF
THE  1933  ACT,  OR  APPLICABLE  STATE  SECURITIES  LAWS,  SHALL RESULT FROM THE
PROPOSED  TRANSFER.

                       MURDOCK COMMUNICATIONS CORPORATION

                                CONVERTIBLE NOTE
                                due May 29, 2003

$__________     May  29,  2000
     Cedar  Rapids,  Iowa

          FOR  VALUE  RECEIVED,  the  undersigned,  MURDOCK  COMMUNICATIONS
CORPORATION,  an Iowa corporation (the "Company"), hereby promises to pay to the
order of ___________________________________ or its registered permitted assigns
(the  "Holder"),  the  principal  sum  of  __________________________  Dollars
($___________) on May 29, 2003, together with interest (computed on the basis of
a 360-day year of twelve 30 day months) on the unpaid principal at a rate of 12%
per  annum,  from  the  date  hereof  until  this Note is paid in full.  Accrued
interest on this Note shall be payable at maturity.  If any payment on this Note
becomes due and payable on a day other than a business day, the maturity thereof
shall  be  extended  to  the  next  succeeding business day and, with respect to
payments  of principal, interest thereon shall be payable at the then applicable
rate  during  such  extension.

          This Note is one of the Notes of the Company described in the Offering
Circular  of  the  Company  dated  May  10,  2000.

<PAGE>
          1.     Payments.  Payments  of  principal of and interest on this Note
                 --------
shall  be  mailed and addressed to the Holder hereof at the address shown on the
register  maintained  by  the  Company  for  such purpose in lawful money of the
United  States  of America.  Payments under this Note shall be deemed made three
business  days  after  deposit  of  such  payments  in  the  U.S. mail postpaid.

          2.     Conversion.
                 ----------

               (a)     At any time and from time to time prior to the payment in
full  of the principal amount of this Note, the Holder may, subject to the terms
of  this  Note,  convert all or any portion of the then outstanding principal of
this  Note,  together  with  any  accrued but unpaid interest thereon, into such
whole number of shares (the "Shares") of the Company's no par value common stock
(the  "Stock"),  as  is obtained by dividing the outstanding principal amount of
the  Note  (or the portion of the outstanding principal amount of the Note being
converted),  together  with  any  accrued  but  unpaid  interest thereon, by the
Conversion  Price  (as  defined below).  Such conversion shall be effective upon
the  receipt  by  the Company of (i) written notice of conversion specifying the
principal  amount  of  the  Note,  together with any accrued but unpaid interest
thereon, to be converted and (ii) this Note.  Promptly upon the effectiveness of
the  conversion,  the Company will issue and deliver to the Holder duly executed
certificates  for  fully paid and nonassessable shares of the Stock representing
the number of Shares to which the Holder is entitled pursuant to such conversion
(bearing  such  legends  as  are  deemed  appropriate under applicable state and
federal  securities  laws  in  the  opinion  of  counsel  to  the  Company).

               (b)     If,  at  any time, the Holder is converting less than the
full  amount  due  under  this  Note,  the  Company  shall issue to the Holder a
replacement  Note  for the amount due under this Note less the amount converted.

               (c)     Upon  the  Holder's surrender of the Note to be converted
from  time  to  time, the rights of the Holder of the Note being converted shall
cease  with  respect  to that portion of the Note being converted except for the
right  to  receive Shares and accrued but unpaid interest and a replacement Note
in  accordance  herewith,  and  the  Holder shall be treated for all purposes as
having  become  the  record  holder  of  such  Shares  at  such  time.

               (d)     For  purposes  of this Note, the "Conversion Price" shall
be an amount equal to $3.03 per Share, as adjusted from time to time pursuant to
paragraphs  (e),  (f)  and  (g)  below.

                                        2
<PAGE>
               (e)     In  the event the Company should at any time or from time
to  time  after  the  date  of  issuance  of this Note fix a record date for the
effectuation of a split or subdivision of the outstanding shares of Stock or the
holders of Stock entitled to receive a dividend or other distribution payable in
additional  shares  of  Stock or other securities or rights convertible into, or
entitling  the  holder  thereof  to  receive  directly or indirectly, additional
shares  of  Stock (the "Stock Equivalents") without payment of any consideration
by  such  holder  for  the  additional  shares  of  Stock  or  Stock Equivalents
(including  the  additional shares of Stock issuable upon conversion or exercise
thereof),  then,  as  of  such  record  date  (or  the  date  of  such dividend,
distribution,  split  or subdivision if no record date is fixed), the Conversion
Price of this Note shall be appropriately decreased so that the number of shares
of  Stock issuable upon conversion of this Note shall be increased in proportion
to  such  increase of the outstanding shares of Stock.  Notwithstanding anything
herein  to  the contrary, the Conversion Price of this Note will not be adjusted
with respect to any dividend on any shares of the Company's preferred stock paid
in  the  form  of  Stock.

               (f)     If  the number of shares of Stock outstanding at any time
after the date hereof is decreased by a combination of the outstanding shares of
Stock,  a reverse stock split or similar transaction, then, following the record
date  of  such  transaction,  the  Conversion  Price  for  this  Note  will  be
appropriately  increased  so  that  the  number  of  shares of Stock issuable in
conversion  of  this  Note  will  be  decreased in proportion to the decrease in
outstanding  shares  of  Stock.

               (g)     Any  capital  reorganization,  reclassification,
consolidation,  merger  or  sale  of  all  or substantially all of the Company's
assets  to another person or entity which is effected in such a way that holders
of  Stock  are  entitled  to  receive  (either  directly  or  upon  subsequent
liquidation)  stock,  securities,  cash or assets with respect to or in exchange
for  Stock  is  referred  to  herein  as  an  "Organic  Change."  Prior  to  the
consummation of any Organic Change, the Company will make appropriate provisions
to insure that the Holder will thereafter have the right to acquire and receive,
in  lieu of or in addition to (depending on whether holders of Stock will retain
or relinquish their Stock as part of such Organic Change) the Shares immediately
theretofore  acquirable  and  receivable  upon the conversion of this Note, such
shares  of  stock, securities, cash or assets as such Holder would have received
in connection with such Organic Change if such Holder had converted this Note to
Shares  immediately prior to such Organic Change.  In addition, the Company will
not  effect  any  such  consolidation,  merger  or  sale,  unless  prior  to the
consummation  thereof,  the  successor  corporation  (if other than the Company)
resulting  from  the  consolidation or merger or the corporation purchasing such
assets  assumes  by  written  instrument (in form reasonably satisfactory to the
Holder),  the  obligation  to  deliver to each such Holder such shares of stock,
securities,  cash or assets as, in accordance with the foregoing provision, such
Holder  may  be  entitled  to  acquire.

                                        3
<PAGE>
               (h)     Immediately  upon  any adjustment of the Conversion Price
and  any change in the rights of the Holder by reason of the events set forth in
paragraphs  (e),  (f)  or  (g),  then  and  in  each such case, the Company will
promptly  cause  its  chief  financial  officer  to  deliver  to  the  Holder  a
certificate  stating  the  adjusted  Conversion  Price,  or specifying the other
shares  of  stock,  securities  or assets and the amount thereof receivable as a
result  of  such  change  in  rights, and setting forth in reasonable detail the
method  of  calculation and the facts upon which such calculation is based.  The
Company  will  also give written notice to the Holder within five days after the
Company's  board  of  directors authorizes (a) any dividend or distribution upon
Stock,  (b)  any  pro  rata  subscription  offer  to holders of Stock or (c) any
Organic  Change  or  any  dissolution, liquidation or winding-up of the Company;
provided, however, that such notice shall in any event be not less than ten days
before  any  record date of the Stock with respect to such transaction or event.

               (i)     In  connection  with  the  conversion  of  this  Note, no
fractions of Shares shall be issued, but in lieu thereof the Company shall pay a
cash  adjustment  in  respect  of such fractional interest in an amount equal to
such  fractional  interest  multiplied  by the current market price per share of
Stock  on  the day on which the Note is deemed to have been converted.  The good
faith  determination  of  the  current  market  price  per share of Stock by the
Company's  Board  of  Directors  shall  be  conclusive.

          3.     Redemption.       This  Note is subject to redemption, in whole
                 ----------
or  in part, at the option of the Company upon not less than 20 nor more than 60
days'  prior  written  notice  to  the  Holder.  Such  notice  shall specify the
redemption  date  and provide instructions to the Holder regarding the surrender
of  this  Note  for  redemption  and  the  payment of the redemption price.  The
Company  may redeem all or part of this Note at a redemption price equal to 100%
of  the  outstanding  principal amount being redeemed, together with accrued and
unpaid interest, to the redemption date.  This Note (or the portion thereof) for
whose redemption and payment provision is made shall cease to bear interest from
and  after  the redemption date.  If, at any time, the Company is redeeming less
than  the  full  principal  amount  of this Note, the Company shall issue to the
Holder  a  replacement  Note,  for the principal amount of this Note outstanding
less  the  principal amount redeemed.  Notwithstanding the foregoing, the Holder
may  elect  to  convert  this  Note  into  Shares pursuant to Section 2 above by
delivering  a  notice  of  conversion  prior  to  the  redemption  date.

          4.     Cancellation  of  Note.  After  all amounts due under this Note
                 ----------------------
have  been  paid  in  full,  this  Note  will  be surrendered to the Company for
cancellation  and  will  not  be  reissued.

                                        4
<PAGE>
          5.     Reservation  of Shares.  The Company shall at all times reserve
                 ----------------------
and  keep  available  out  of  its authorized and unissued Stock, solely for the
purpose  of effecting the conversion of the Note, such number of shares of Stock
as  shall from time to time be sufficient to effect the conversion of the amount
of  the  Note  outstanding.

          6.     Events  of  Default.  The  occurrence  of  any of the following
                 -------------------
events  shall  constitute  an  Event  of  Default  under this Note (an "Event of
Default"):

               (a)     the  Company  defaults  in  the  payment of any principal
owing  in  respect  of  the  Note  when  the  same  shall  become  due;  or

               (b)     the Company defaults in the payment of any interest owing
in  respect  of  the Note when the same shall become due, and such default shall
continue  for  a  period  of  15  days;  or

               (c)     the  Company  (i)  makes an assignment for the benefit of
creditors,  files a petition in bankruptcy, petitions or applies to any tribunal
for  the  appointment  of  a  custodian,  receiver  or  any  trustee for it or a
substantial  part  of  its  assets;  (ii)  commences  any  proceedings under any
bankruptcy,  reorganization,  dissolution  or  liquidation law or statute of any
jurisdiction, whether now or hereafter in effect; (iii) has filed against it any
such  petition  or  application in which an order for relief is entered or which
remains  undismissed  for  a  period  of  60 days or more; or (iv) indicates its
consent  to,  approval  of  or acquiescence in any such petition, application or
proceeding  or  order  of  relief or the appointment of a custodian, receiver or
trustee  for  it  or  a  substantial  part of its properties or shall suffer any
custodianship, receivership or trusteeship to continue undischarged for a period
of  60  days  or  more.

               If an Event of Default shall occur, (i) the full unpaid principal
amount  of  this Note shall, subject to the terms set forth below, automatically
be  due  and  payable  without  any declaration, notice, presentment, protest or
demand  of  any  kind  (all  of  which  are  hereby waived), and (ii) the unpaid
principal balance hereof and on any unpaid interest hereon shall accrue interest
at  a  rate  of 18% per annum during the continuance of such Event of Default to
the  extent  permitted  by applicable law, until the same shall be paid or until
such  Event  of  Default  shall  be  cured.

               No  delay  or  omission  on  the part of Holder in exercising any
right  or  option  given  to  Holder  shall  impair  such  right or option or be
considered  as  a  waiver  thereof  or  acquiescence  in  any default hereunder.

                                        5
<PAGE>
               The Company hereby waives presentment, demand, notice of dishonor
and  protest  and consents to any and all extensions and renewals hereof without
notice.

          7.     Governing Law.  This Note shall be governed by and construed in
                 -------------
accordance  with  the laws of the State of Iowa, without regard to any conflicts
of  laws  statutes  or  principles.

          8.     Payment  of  Expenses  to  Enforce  Note.  In  the event of any
                 ----------------------------------------
action  at  law  or  suit  in  equity  in  respect of this Note, the Company, in
addition  to  all  other sums which the Company may be required to pay, will pay
Holder's  costs  and expenses, including reasonable attorneys' fees, incurred in
connection  with  such  suit  or  action.

          9.     Rights  and  Liabilities  as  Shareholder.  Except as specified
                 -----------------------------------------
herein  or  as  otherwise agreed by the Company and the Holder, the Holder shall
have  no  rights or liabilities as a shareholder of the Company until and to the
extent  of  the  conversion  of  this  Note  pursuant to Section 2 of this Note.

                              MURDOCK  COMMUNICATIONS  CORPORATION

                              BY
                                -------------------------------------

                                        6

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