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                                                                   EXHIBIT 4.17

THESE  SECURITIES  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.  THEY  MAY  NOT  BE SOLD, OFFERED FOR SALE, PLEDEGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER  SUCH  ACT  OR  AN  EXEMPTION  FROM  REGISTRATION  UNDER  SUCH  ACT.

                                                  HOME  DIRECTOR,  INC.

                                     WARRANT
                             Dated: February 6, 2002

     THIS  CERTIFIES  THAT  Robert Wise with his address at 5569 Perugia Circle,
San Jose, California 95138 (herein sometimes called the "Holder") is entitled to
purchase  from  Home  Director, Inc., a Delaware corporation (hereinafter called
the  "Company"),  at the prices and during the periods as hereinafter specified,
up  to 785,714 shares of common stock, par value $.001 per share, of the Company
("Common  Stock").  This Warrant (the "Warrant" and, together with any successor
warrants,  the  "Warrants")  to  purchase  shares  of Common Stock (the "Warrant
Shares")  was  originally  issued  pursuant  to  a  subscription agreement dated
February 6, 2002 between the Company and the Holder in connection with a private
offering  of  securities  by  the  Company  (the  "Offering").

     1.     The  rights  represented  by  this Warrant shall be exercised at the
price,  subject  to adjustment in accordance with Section 6 of this Warrant (the
"Exercise  Price"),  and  during  the  periods  as  follows:

(a)          Prior  to August 6, 2002 the Holder shall have no right to purchase
any  Warrant  Shares  hereunder.

(b)     Between August 6, 2002 and February 5, 2005, inclusive, the Holder shall
have  the  option to purchase all or any portion of the Warrant Shares hereunder
at  the  Exercise Price. For purposes of the adjustments under Section 6 hereof,
the  Exercise  Price  shall  be deemed to be $0.07 per share, subject to further
adjustment  as  provided  in  such  Section  6;  and

(c)     After  February  5,  2005 the Holder shall have no right to purchase any
Warrant  Shares  hereunder.

     2.     (a)     The  rights  represented by this Warrant may be exercised at
any  time  within  the  period  above specified, in whole or in part, by (i) the
surrender  of  this  Warrant  (with the purchase form at the end hereof properly
executed) at the principal executive office of the Company (or such other office
or  agency of the Company as it may designate by notice in writing to the Holder
at  the  address  of the Holder appearing on the books of the Company); and (ii)
payment  to  the  Company of the exercise price then in effect for the number of
Warrant  Shares  specified  in  the above-mentioned purchase form.  This Warrant
shall  be  deemed  to  have  been  exercised,  in whole or in part to the extent
specified,  immediately  prior to the close of business on the date this Warrant
is  surrendered  and payment is made in accordance with the foregoing provisions
of  this  Section  2,  and  the  person  or  persons  in whose name or names the
certificates  for  Warrant  Shares  shall  be  issuable upon such exercise shall
become  the  holder or holders of record of such Warrant Shares at that time and
date.  The certificates for the Warrant Shares so purchased and, if this Warrant
shall  have  been  exercised in part only, a Warrant representing the balance of
the Warrant Shares, shall be delivered to the Holder as soon as practicable, but
not later than seven (7) days after the rights represented by this Warrant shall
have  been  so  exercised.

     (b)     At  any  time  during the period above specified, during which this
Warrant  may  be exercised, the Holder may, at its option and in lieu of payment
as set forth in subsection (a) above, exchange this Warrant, in whole or in part
(a  "Warrant  Exchange"),  into  the  number  of  Warrant  Shares  determined in

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accordance  with  this  subsection  (b),  by  surrendering  this  Warrant at the
principal  office  of  the Company or at the office of its stock transfer agent,
accompanied  by  a  notice stating such Holder's intent to effect such exchange,
the  number of Warrant Shares into which this Warrant is to be exchanged and the
date  on which the Holder requests that such Warrant Exchange occur (the "Notice
of  Exchange").  The  Warrant Exchange shall take place on the date specified in
the Notice of Exchange or, if later, the date the Notice of Exchange is received
by  the  Company  (the  "Exchange  Date").  Certificates  for the Warrant Shares
issuable  upon  such  Warrant Exchange and, if applicable, a new Warrant of like
tenor  evidencing  the  balance  of the Warrant Shares remaining subject to this
Warrant,  shall  be  issued  as of the Exchange Date and delivered to the Holder
within  seven  (7)  days  following  the  Exchange Date.  In connection with any
Warrant  Exchange,  this  Warrant shall represent the right to subscribe for and
acquire the number of Warrant Shares (rounded to the next highest integer) equal
to  (x)  the  number  of Warrant Shares specified by the Holder in its Notice of
Exchange up to the maximum number of Warrant Shares subject to this Warrant (the
"Total  Number")  less  (y)  the  number of Warrant Shares equal to the quotient
obtained  by  dividing  (A)  the  product  of  the Total Number and the existing
Exercise  Price  by  (B)  the Fair Market Value.  "Fair Market Value" shall mean
first, if there is a trading market as indicated in subsection (i) below for the
shares  of  Common  Stock, such Fair Market Value per share of the Common Stock,
and  if  there  is  no such trading market in the Common Stock, then Fair Market
Value  shall have the meaning indicated in subsections (ii) through (iii) below:

(i)          if  the  Common Stock is listed on a domestic or foreign securities
exchange  or  admitted to unlisted trading privileges on such exchange or listed
for  trading  on  the  Nasdaq National or SmallCap Market, the Fair Market Value
shall  be  the  average  of  the last reported sale prices or the average of the
means  of  the  last  reported  bid and asked prices of the Common Stock on such
exchange  or  market  for the ten (10) business days ending on the last business
day  prior  to  the  Exchange  Date;  or

(ii)     if  the  Common  Stock is not so listed or admitted to unlisted trading
privileges,  the Fair Market Value shall be the average of the means of the last
reported bid and asked prices of the Common Stock for the ten (10) business days
ending  on  the  last  business  day  prior  to  the  Exchange  Date;  or

(iii)     if  the  Common Stock is not so listed or admitted to unlisted trading
privileges  and  bid and asked prices are not so reported, the Fair Market Value
shall  be  an amount, not less than book value thereof as at the end of the most
recent  fiscal year of the Company ending prior to the Exchange Date, determined
in good faith and in such reasonable manner as may be prescribed by the Board of
Directors  of  the  Company.

     3.     This  Warrant  and  the  Warrant  Shares  may  be transferred, sold,
assigned or hypothecated ("Transferred") so long as any such assignment shall be
effected  by  the  Holder (i) executing the form of assignment at the end hereof
and  (ii)  surrendering this Warrant for cancellation at the office or agency of
the  Company referred to in Section 2 hereof, whereupon the Company shall issue,
in  the  name  or  names  specified  by  the Holder (including the Holder) a new
Warrant  or  Warrants  of like tenor and representing in the aggregate rights to
purchase  the  same  number  of  Warrant  Shares  as  are purchasable hereunder;
provided, however, that the Company shall receive, if it requests, an opinion of
counsel  at  Holder's  expense,  to  the effect that this Warrant or the Warrant
Shares,  as  the  case may be, may be Transferred without registration under the
Securities  Act  of  1933,  as  amended  (the  "Act").

4.     The  Company  covenants  and  agrees that all Warrant Shares which may be
issued  upon  exercise  of  this  Warrant, upon issuance and payment therefor in
accordance  with  the  terms  of  this Warrant, will be duly and validly issued,
fully paid and nonassessable and no personal liability will attach to the holder
thereof  solely  by  reason of being such holder.  The Company further covenants
and  agrees  that during the periods within which this Warrant may be exercised,
the  Company  will at all times have authorized and reserved a sufficient number
of  shares  of  its  Common  Stock  to provide for the exercise of this Warrant.

5.     Prior  to  exercise  of  this Warrant, this Warrant shall not entitle the
Holder  to  any  voting rights or any other rights, or subject the Holder to any
liabilities,  as  a  stockholder  of  the  Company.

6.     The  Exercise  Price  in  effect  at  any time and the number and kind of
securities  purchasable  upon  the  exercise  of the Warrant shall be subject to
adjustment  from  time  to time upon the happening of certain events as follows:

(a)          In  case  the  Company  shall  (i)  declare  a  dividend  or make a
distribution  on  its  outstanding  shares  of  Common Stock in shares of Common

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Stock,  (ii) subdivide or reclassify its outstanding shares of Common Stock into
a greater number of shares or (iii) combine or reclassify its outstanding shares
of Common Stock into a smaller number of shares, the Exercise Price in effect at
the  time  of  the  record  date  for  such  dividend  or distribution or of the
effective  date  of  such  subdivision, combination or reclassification shall be
adjusted so that it shall equal the price determined by multiplying the Exercise
Price  by  a fraction, the denominator of which shall be the number of shares of
Common Stock outstanding after giving effect to such action and the numerator of
which  shall  be  the  number  of shares of Common Stock outstanding immediately
prior  to  such action.  Such adjustment shall be made successively whenever any
event  listed  above  shall  occur.

(b)     The  Exercise  Price  shall  also  be  subject to adjustment as follows:

(i)          For  purposes  of  this  Subsection  (b), the following definitions
shall  apply:  (A)  "Company  Options" shall mean rights, options or warrants to
subscribe  for,  purchase  or  otherwise  acquire  Common  Stock  or Convertible
Securities;  (B)  "Original  Issue  Date"  shall  mean  February  6,  2002;  (C)
"Convertible  Securities"  shall  mean  any  evidence of indebtedness, shares of
capital  stock (other than Common Stock) or other securities convertible into or
exchangeable for Common Stock; and (D) "Additional Shares of Common Stock" shall
mean  all  shares of Common Stock issued by the Company on or after the Original
Issue  Date,  other than shares of Common Stock issued at any time: (1) pursuant
to  the exercise of options, warrants or other Common Stock issued to employees,
officers  or  directors of, or consultants or advisors to, or any strategic ally
of,  the  Company  pursuant  to any stock purchase or stock option plan or other
arrangement  approved  by  the  Board of Directors of the Company (the "Board of
Directors");  (2)  pursuant  to the exercise of options, warrants or Convertible
Securities outstanding as of the Original Issue Date; (3) in connection with the
acquisition  of all or part of another unaffiliated entity by stock acquisition,
merger, consolidation or other reorganization, or by the purchase of all or part
of  the  assets  of  such other entity where the Company or its stockholders own
more  than  fifty  (50%) percent of the voting power of the acquired, surviving,
combined  or  successor  company;  or  (4)  in  connection  with issuance and/or
conversion  of  those  bridge  notes  contemplated in the letter of intent dated
January  30,  2002  between  the  Company  and  Netword,  Inc.

(ii)     Subject to subsection (b)(1)(D) hereof, in the event the Company at any
time  or from time to time after the Original Issue Date shall issue any Company
Options  or  Convertible  Securities,  then the number of shares of Common Stock
actually  issued  upon  the  exercise of such Company Options or, in the case of
Convertible  Securities,  the  actual conversion or exchange of such Convertible
Securities,  shall  be  deemed  to  be  Additional  Shares  of  Common  Stock.

(iii)     In  the  event the Company, after the Original Issue Date, shall issue
Additional  Shares  of Common Stock without consideration or for a consideration
per  share less than the then-applicable Exercise Price, then and in such event,
such  Exercise  Price shall be reduced, concurrently with such issue, to a price
(calculated to the nearest cent) determined by multiplying the Exercise Price by
a  fraction,  (i) the numerator of which shall be the number of shares of Common
Stock  issued  and  outstanding  (on a fully diluted basis) immediately prior to
such  issuance  plus  the  quotient  obtained  by  dividing  (x)  the  aggregate
consideration  received by the Company for the total number of Additional Shares
of  Common Stock so issued by (y) the Exercise Price in effect immediately prior
to  such  issuance,  and  (ii)  the  denominator of which shall be the number of
shares  of  Common  Stock  issued  and  outstanding  (on  a fully diluted basis)
immediately  prior  to  such  issue plus the number of such Additional Shares of
Common  Stock  so  issued.

(iv)     For  purposes  of  this  Section  6,  the consideration received by the
Company  for  the  issuance  of  any  Additional Shares of Common Stock shall be
computed  as  follows.  Such consideration shall insofar as it consists of cash,
be  computed  at  the  net  amount  of  cash  received  by the Company excluding
expenses,  discounts  and  commissions payable by the Company in connection with
such  issuance or sale and amounts paid or payable for accrued interest; insofar
as  it  consists  of  property  other  than  cash, be computed at the fair value
thereof  at the time of such issuance, as reasonably determined in good faith by
the Board of Directors net of expenses as set forth in the immediately preceding
clause;  and  in the event Additional Shares of Common Stock are issued together
with other shares or securities or other assets of the Company for consideration
that  covers  both  cash  and  property  other than cash, the proportion of such
consideration so received, computed as provided in the immediately two preceding
clauses,  shall  be  as  reasonably  determined,  in good faith, by the Board of
Directors.  The  consideration  per share received by the Company for Additional
Shares of Common Stock issued pursuant to Subsection (b)(ii) hereof, relating to
Company  Options and Convertible Securities, shall be determined by dividing the
total  amount, if any, received by the Company as consideration for the issuance
of  such Company Options or Convertible Securities, plus the aggregate amount of
additional  consideration  paid to the Company upon the exercise of such Company
Options  or the conversion or exchange of such Convertible Securities, or in the
case of Company Options for Convertible Securities, the exercise of such Company

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Options  for  Convertible  Securities  and  the  conversion  or exchange of such
Convertible  Securities  (subject  to  any  adjustments  in  the  exercise price
thereof),  by  the  number of shares of Common Stock issued upon the exercise of
such  Company  Options  or  the  conversion  or  exchange  of  such  Convertible
Securities  or,  in  the case of Company Options for Convertible Securities, the
exercise  of  such Company Options for Convertible Securities and the conversion
or  exchange  of  such  Convertible  Securities.

(c)          No  adjustment  in the Exercise Price shall be required unless such
adjustment  would require an increase or decrease of at least one cent ($.01) in
such  price;  provided,  however,  that  any adjustments which by reason of this
Subsection  (c)  are  not required to be made shall be carried forward and taken
into  account  in  any subsequent adjustment required to be made hereunder.  All
calculations  under  this  Section 6 shall be made to the nearest cent or to the
nearest  one-hundredth of a share, as the case may be.  Anything in this Section
6  to the contrary notwithstanding, the Company shall be entitled upon the prior
written  request  of the Holder, but shall not be required, to make such changes
in  the  Exercise  Price, in addition to those required by this Section 6, as it
shall  determine,  in  its  sole  discretion,  to be advisable in order that any
dividend  or  distribution  in  shares  of  Common  Stock,  or  any subdivision,
reclassification  or  combination of Common Stock, hereafter made by the Company
shall  not  result  in  any  Federal  Income  tax  liability  to  the  Holders.

(d)     Whenever the Exercise Price is adjusted, as herein provided, the Company
shall  promptly  but  no  later than ten (10) days after any request for such an
adjustment  by  the  Holder,  cause a notice setting forth the adjusted Exercise
Price  and  adjusted  number  of  Warrant  Shares issuable upon exercise of each
Warrant  and,  if requested, information describing the transactions giving rise
to  such  adjustments,  to  be  mailed  to the Holders, at the address set forth
herein,  and  shall  cause a certified copy thereof to be mailed to its transfer
agent,  if  any.  The  Company may retain a firm of independent certified public
accountants  selected  by  the  Board  of  Directors  (who  may  be  the regular
accountants  employed  by  the Company) to make any computation required by this
Section 6, and a certificate signed by such firm shall be conclusive evidence of
the  correctness  of  such  adjustment.

(e)     In  the  event  that  at  any  time,  as  a result of an adjustment made
pursuant  to  Subsection (a) or (b) above, the Holder of this Warrant thereafter
shall  become  entitled  to receive any shares of the Company, other than Common
Stock, thereafter the number of such other shares so receivable upon exercise of
this Warrant shall be subject to adjustment from time to time in a manner and on
terms  as nearly equivalent as practicable to the provisions with respect to the
Common  Stock  contained  in  Subsections  (a)  to  (d),  inclusive  above.

(f)     In  case  any event shall occur as to which the other provisions of this
Section  6  are  not strictly applicable but as to which the failure to make any
adjustment  would  not  fairly  protect  the purchase rights represented by this
Warrant  in  accordance with the essential intent and principles hereof then, in
each such case, the Holder(s) of Warrant(s) representing the right to purchase a
majority  of  the  Warrant  Shares  may  appoint  a  firm  of independent public
accountants reasonably acceptable to the Company, which shall give their opinion
as  to  the  adjustment, if any, on a basis consistent with the essential intent
and  principles  established  herein,  necessary to preserve the purchase rights
represented  by  the  Warrant.  Upon  receipt  of such opinion, the Company will
promptly  mail  a  copy thereof to the Holder of this Warrant and shall make the
adjustments  described therein. The fees and expenses of such independent public
accountants  shall  be  borne  by  the  Company.

     7.     In  case  of  any  reclassification, capital reorganization or other
change  of  outstanding shares of Common Stock of the Company, or in case of any
consolidation  or  merger of the Company with or into another corporation (other
than  a  merger  with a subsidiary of the Company in which merger the Company is
the  continuing  corporation  and which does not result in any reclassification,
capital reorganization or other change of outstanding shares of Common Stock) or
in  case of any sale, lease or conveyance to another corporation of the property
of  the  Company  as an entirety, the Company shall, as a condition precedent to
such transaction, cause effective provisions to be made so that the Holder shall
have  the  right  thereafter by exercising this Warrant at any time prior to the
expiration  of  this Warrant, to purchase the kind and amount of shares of stock
and other securities and property receivable upon such reclassification, capital
reorganization  and other change, consolidation, merger, sale or conveyance by a
holder  of  the number of shares of Common Stock which might have been purchased
upon  exercise  of  this  Warrant  immediately  prior  to such reclassification,
change,  consolidation,  merger,  sale  or conveyance.  Any such provision shall
include  provision for adjustments which shall be as nearly equivalent as may be

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practicable  to  the  adjustments  provided  for in this Warrant.  The foregoing
provisions  of  this  section  shall  similarly  apply  to  successive
reclassifications, capital reorganizations and changes of shares of Common Stock
and  to  successive  consolidations,  mergers,  sales  or  conveyances.

     8.     This  Agreement shall be governed by and in accordance with the laws
of  the  State  of  New  York.

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     IN  WITNESS  WHEREOF,  Home  Director,  Inc.  has caused this Warrant to be
signed  by  its  duly  authorized  officers  under  its corporate seal, and this
Warrant  to  be  dated  February  6,  2002.

                                        HOME  DIRECTOR,  INC.

                                        By:_____________________________
                                             Name:  Don  Witmer
                                             Title:  Chief  Executive  Officer

[corporate  seal]

Attest:

____________________________
Darryl  Stemm,  Assistant  Secretary

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                                  PURCHASE FORM

                (To be signed only upon exercise of the Warrant)

     The  undersigned,  the  holder of the foregoing Warrant, hereby irrevocably
elects  to  exercise the purchase rights represented by such Warrant for, and to
purchase thereunder, ________ shares of Common Stock, par value $.001 per share,
of  Home  Director,  Inc.  and  herewith  makes  payment  of  $___  therefor.
Dated:  __________

                     INSTRUCTIONS FOR REGISTRATION OF STOCK

Name:          _______________________________
          (Please  type  or  print  in  block  letters)

Address:     _______________________________

Signature:      ______________________________

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                                WARRANT EXCHANGE

     The  undersigned,  pursuant  to  the  provisions  of the foregoing Warrant,
hereby  elects  to exchange its Warrant for ________ shares of Common Stock, par
value  $.001 per share, of Home Director, Inc., pursuant to the Warrant Exchange
provisions  of  the  Warrant.

Dated:  ____________

Print  Name:     __________________________

Address:     __________________________

Signature:     __________________________

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                                  TRANSFER FORM

                (To be signed only upon transfer of the Warrant)

     For  value  received,  the  undersigned hereby sells, assigns and transfers
unto _____________ the right to purchase shares of Common Stock, par value $.001
per  share,  of  Home Director, Inc. represented by the foregoing Warrant to the
extent  of  ______  shares,  and  appoints  __________ attorney to transfer such
rights  on  the books of Home Director, Inc., with full power of substitution in
the  premises.

Dated:  ___________

                                          _____________________________________

                                          _____________________________________
                                              Address

In  the  presence  of:

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                                                                   EXHIBIT 4.18

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

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

                               HOME DIRECTOR, INC.

                          Common Stock Purchase Warrant

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

         1. EXERCISE.

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

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

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

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

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

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

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

         2. ADJUSTMENTS.

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

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

                                       2
<PAGE>

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

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

         3. TRANSFERS.

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

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

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

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

                                       3
<PAGE>

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

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

         6. NOTICES OF CERTAIN TRANSACTIONS. In case:

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

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

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

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

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

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

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

                                       4
<PAGE>

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

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

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

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

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

                                       5
<PAGE>

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

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

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

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

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

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

                                       6
<PAGE>

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

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

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

                                 HOME DIRECTOR, INC.

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

                                       7
<PAGE>

                                                                      EXHIBIT A

PURCHASE FORM

To:      Home Director, Inc.

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

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

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

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

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

                                       8
<PAGE>

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