Document:

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                                                                    EXHIBIT 4.12

                           MOBILITY ELECTRONICS, INC.
                            (A Delaware corporation)

         FORM OF SERIES C PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     MOBILITY ELECTRONICS, INC., a Delaware corporation (the "Company"), whose
address is 5528 Eubank Boulevard N.E., Suite 3, Albuquerque, New Mexico 87111,
hereby agrees with the undersigned Purchaser as follows:

1. TRANSACTION

     The Company, by due action of its Board of Directors, has authorized the
offer and sale to you under this Series C Preferred Stock and Warrants Purchase
Agreement ("Agreement" or "Purchase Agreement") and to other purchasers under
similar or different Series C Preferred Stock and Warrant Purchase Agreements
("Other Purchasers") of up to $5 million of shares of Series C Preferred Stock,
par value $0.01 per share, of the Company (the "Series C Stock"), at a price of
$6.00 per share. A copy of the Certificate of the Designations, Preferences,
Rights and Limitations of Series C Stock is attached hereto as Exhibit A. For
each share of Series C Stock purchased, you will receive, at no additional cost,
a warrant to purchase two (2) shares of the common stock, par value $ .01 per
share, of the Company (the "Common Stock"), the form of which is attached hereto
as Exhibit B (the "Warrant"). The Series C Stock and Warrant are sometimes
collectively referred to herein as the "Securities". The minimum subscription
amount is $25,000 per investor, unless agreed to by the Company. The Company may
pay commissions to brokers, if any, involved in this offering of Securities.

2. PURCHASE AND SALE

     2.1 The Securities. Subject to all of the terms and conditions of this
Agreement, the Company will issue and sell to you (sometimes referred to as
"Holder") the number of shares of Series C Stock shown on the signature page
hereof (in which event you will also be deemed to have purchased the Warrant for
the applicable number of shares of Common Stock as provided above for no
additional consideration) and you will purchase the same from the Company;
provided that all other terms and conditions set forth in this Purchase
Agreement are satisfied.

     2.2 Closing. The purchase by and sale and delivery to you of the Securities
(the "Closing") shall take place at the executive offices of the Company as set
forth above at such date and time as determined by the Company (such date being
hereinafter called the "Closing Date"). At the Closing, the Company shall
deliver to you: (i) a certificate representing the number of shares of Series C
Stock to be issued to you which was accepted by the Company; (ii) a Warrant on
the terms provided for in Section 1 above; and (iii) such other items as are
required to be delivered to it pursuant to this Purchase Agreement. The
Securities are being offered by the Company subject to the right of the Company
to reject, at its discretion, any subscription, in whole or in part, for any
reason, and to accept subscriptions notwithstanding the order in which they are
received. Any portion of a subscription not accepted by the Company shall be
promptly returned to you, without interest or deduction.

3. REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE COMPANY

     As an inducement to you to enter into this Agreement, the Company
represents, warrants and agrees that:

     3.1 Corporate Power. The Company has all required corporate power and
authority to own its own properties and to carry on its business as presently
conducted. The Company has all required power and authority to execute and
deliver this Agreement, to issue and sell the Securities, and to carry out the
transactions contemplated by this Agreement.

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     3.2 Authority for Agreement. This Agreement has been duly authorized by all
necessary action of the Company and, when executed and delivered by the Company,
will be a legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, except to the extent that the enforceability hereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors' rights generally or by general principles of equity,
and except that the indemnification provisions of the Agreement may be held to
be violative of public policy under either federal or state laws in the context
of the offer or sale of securities.

     3.3 Validity of Stock. The shares of Series C Stock to be issued to your
hereunder have been duly authorized and when issued, will be legally and validly
issued shares of Series C Stock. The shares of Common Stock issuable upon
exercise of the Series C Stock and the Warrant will, when issued in accordance
with the terms of the Series C Stock and Warrant, respectively, be duly
authorized, legally and validly issued shares of Common Stock.

     3.4 No Conflicting Rights. The holders of the outstanding capital stock of
the Company are not entitled to pre-emptive or other rights to subscribe for the
Securities.

4. REPRESENTATIONS, WARRANTIES AND AGREEMENTS BY YOU

     You hereby represent, warrant and agree that:

     4.1 Authority. You have full power and authority to enter into this
Agreement and it constitutes your legal, valid and binding obligation,
enforceable in accordance with its terms.

     4.2 Purchase For Own Account. You are acquiring the Securities for your own
account, for investment purposes and not for resale or with a view to any
distribution, or in connection with any distribution thereof you are able to (i)
bear the economic risk of your investment in the Securities, (ii) hold the
Securities for an indefinite period of time, and (iii) afford a complete loss of
your investment.

     4.3 Investment Experience. You have the requisite knowledge and experience
in financial and business matters, including investments of this type, to be
capable of evaluating the merits and risks of an investment in the Securities
and of making an informed investment decision with respect thereto.

     4.4 Receipt Of Information. You have received from the Company all of the
information concerning the Company which you consider to be material in making
your investment decision, which information has been requested by you if not
already furnished by the Company. You have had full access to the books and
records of the Company and to its officers, directors and accountants for the
purpose of obtaining and verifying such information and you have had an
opportunity to ask questions and receive answers from the officers of the
Company regarding the terms and conditions of this transaction and the Company's
business and financial condition. No representations or warranties, oral or
otherwise, have been made to you, including without limitation, any
representations concerning the future prospects of the Company, by the Company
or any agent, employee or affiliate of the Company, and in entering into this
action you are not relying upon any information other than the results of your
own independent investigation. You have obtained sufficient information to
evaluate the merits and risks of your investment and to make an informed
investment decision.

     4.5 Restricted Securities. You understand and acknowledge that the
Securities (including underlying shares of Common Stock) you are purchasing
hereunder are "restricted securities" under United States federal and state
securities laws insofar as they have not been registered under the Securities
Act of 1933, as amended (the "Act"), or the securities laws of any other
jurisdiction, that they may not be resold or transferred without compliance with
the registration or qualification provisions of the Act or applicable federal
and state securities laws of any state or other jurisdiction or an opinion of
counsel acceptable to the Company that an exemption from such registration and
qualification requirements is available.

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     4.6 Limitations on Disposition. Without in any way limiting the
representations set forth above, you further agree not to make any disposition
of all or any portion of the Securities (including underlying shares of Common
Stock) unless and until: (i) there is then in effect a registration statement
under the Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or (ii) you shall have notified the
Company of the proposed disposition and shall have furnished the Company with a
statement of the circumstances surrounding the proposed disposition and you have
furnished the Company with an opinion of counsel, reasonably satisfactory to the
Company, that such disposition will not require registration of such securities
under the Act and applicable securities laws of any state or other jurisdiction.

     4.7 Illiquid Investments. Your overall commitment to investments which are
not readily marketable is not disproportionate to your net worth and your
investment in the Securities will not cause such overall commitment to become
excessive. You have adequate means of providing for your current needs and
personal contingencies.

     4.8 Accredited Investor. You are an "Accredited Investor" as that term is
defined in Section 501(a) of Regulation D promulgated under the Act ("Regulation
D").

     4.9 Company Reliance. You understand, acknowledge and agree that the
Company, in entering into and performing under this Agreement, is relying on the
accuracy of the responses by you in this Agreement, which responses you warrant
to be true, complete and correct.

5. CONDITIONS TO YOUR OBLIGATIONS

     Your obligations to purchase the Securities under this Agreement are
subject to the fulfillment on or before the Closing of each of the following
conditions:

     5.1 Representations and Warranties. The representations and warranties of
the Company contained in Section 3 above shall be true on and as of the Closing
with the same effect as though made on and as of the date thereof.

     5.2 Company Performance. The Company shall have performed and complied with
all agreements, obligations and conditions contained in this Agreement, which
performance or compliance are required of it on or before the Closing.

6. CONDITIONS TO THE COMPANY'S OBLIGATIONS

     The obligations of the Company to sell and issue the Securities to you are
subject to the fulfillment on or before the Closing of each of the following
conditions by you:

     6.1 Representations and Warranties. Your representations and warranties
contained in Section 4 above shall be true on and as of the Closing with the
same effect as though made on and as of the date thereof.

     6.2 Payment. You shall have delivered to the company an executed copy of
this Agreement, together with the payment of the subscription price for the
Securities being purchased by you.

     6.3 Blue Sky Qualification. The Company shall have received any permits or
authorization from any state securities law authority which may be necessary to
qualify the offer and sale of the Securities to you.

7. REGISTRATION RIGHTS

     The Company hereby grants to Holder the registration rights set forth in
Appendix I attached hereto, subject to the remainder of this Agreement. Appendix
I is incorporated into, and made a part of, this Agreement.

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8. FURTHER AGREEMENTS

     You agree that:

     8.1 No Transfer or Assignment. You will not transfer or assign this
Agreement or any of your interest herein except as provided in Section 4.6
above.

     8.2 Successors and Assigns. You may not cancel or revoke this Agreement and
this Agreement shall be binding upon your successors and assigns, except as
provided by certain state laws.

     8.3 Indemnification. You shall indemnify, hold harmless and defend the
Company and its affiliates and agents with respect to any and all loss, damage,
expense, claim, action or liability any of them may incur as a result of the
breach or untruth of any representations or warranties made by you herein, and
you agree that in the event of any breach or untruth of any representations or
warrants made by you herein, the Company may, at its option, forthwith rescind
the sale of the Securities to you, in addition to any other rights or remedies
which the Company may have.

     8.4 Legend. A legend in substantially the following form will be placed on
all documents or certificates evidencing the Securities and the shares of Common
Stock underlying the Series C Stock and Warrant:

     "THE SECURITIES EVIDENCED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES
     LAW OF ANY STATE OR OTHER JURISDICTION AND SUCH SECURITIES MAY NOT BE SOLD,
     ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
     AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE ACT, AND
     APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR AN
     OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS
     NOT REQUIRED."

     8.5 Investment Protection. In the event that the Company undertakes a
private placement of securities on or prior to June 30, 2000, (excluding any
refinancing of the Company's senior debt or any debt offering to a financial
institution or institutional investor (including warrants), unless other
non-institutional investors participate therein), Holder will have a ten (10)
day period following notice of such offering from the Company to exchange the
securities Holder received in this offering (including any underlying shares of
Common Stock) for the same type of securities issued in the subsequent offering,
and in the aggregate dollar amount of Holder's investment

9. GENERAL AND MISCELLANEOUS

     9.1 Survival. The warranties, representations and covenants of the parties
contained in this Agreement shall survive the execution and delivery of this
Agreement and the Closing.

     9.2 Entire Agreement. This Agreement constitutes the entire agreement among
the parties with respect to the subject matter hereof, and no party shall be
liable or bound to any other party in any manner by any warranties,
representations, guarantees or covenants except as specifically set forth in
this Agreement. The terms and conditions of this Agreement shall inure to the
benefit of and be binding upon the respective successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and
assigns any rights, remedies, obligations, or liabilities under or by reason of
this Agreement, except as expressly provided in this Agreement.

     9.3 Governing Law. This Agreement shall be governed by and construed under
the internal laws of the State of Delaware without regard to conflicts of law.

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     9.4 Notices . All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given
on the date of service if served personally on the party to whom notice is to be
given, or on the tenth day after the date of mailing if mailed to the party to
whom notice is to be given, by first class mail, registered or certified,
postage prepaid, and properly addressed as follows: if to the purchaser, at his
address as shown in the Company records; and if to the Company, at its principal
office. Any party may change its address for purposes of this paragraph by
giving the other party written notice of the new address in the manner set forth
above.

     9.5 Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, such provision shall be excluded from
this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     9.6 Acceptance. All questions as to the validity, form, eligibility
(including time of receipt) and acceptance of completed Purchase Agreements will
be determined by the Company, which determination will be final and binding. The
Company reserves the absolute right to reject any Purchase Agreement, in its
sole and absolute discretion. The Company also reserves the right to waive any
irregularities in, or conditions of, the submission of any Purchase Agreements,
and the Company's interpretation of the terms and conditions for the purchase of
Securities (including these instructions) shall be final and binding. The
Company shall be under no duty to give any notification of irregularities in
connection with any attempted subscription for Securities or incur any liability
for failure to give such notification. Until such irregularities have been cured
or waived, no subscription for Securities shall be deemed to have been made. Any
Purchase Agreement that is not properly completed and as to which defects have
not been cured or waived will be returned by the Company to the subscriber as
soon as practicable.

     9.7 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

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                     PURCHASE AGREEMENT GENERAL INSTRUCTIONS

GENERAL INSTRUCTIONS

     This Purchase Agreement contains all documents necessary to subscribe for
Securities. You may subscribe for Securities by completing the Purchase
Agreement in the following manner:

1.   On line (a) of the signature page state the number of shares of Series C
     Stock you wish to purchase (at a price of $6.00 per share), and the
     aggregate purchase price for such shares.

2.   Sign and state your address, telephone number and social security or other
     taxpayer identification number on the lines provided on the signature page
     to the Purchase Agreement and deliver the completed Purchase Agreement to
     the Company with payment of the entire purchase price of the Securities
     subscribed for in the following manner:

          A wire transfer or check payable to the order of the Company:

          Wire transfer instructions are as follows:

                    United Missouri Bank of Kansas City, N.A.
                    10th & Grand
                    Kansas City, Missouri 64105
                    ABA # 1010-0069-5
                    Zurich Yieldwise
                    Bank Account # 9870838818
                    To the benefit of
                    Electronics Accessory Specialists
                    Account # 80-89754385-1

          Checks should be sent overnight to:

                    Mr. Charles R. Mollo
                    Mobility Electronics, Inc.
                    5528 Eubank Blvd., N.E., Suite 3
                    Albuquerque, New Mexico 87111

     Following receipt of your completed subscription documents and check, the
     Company will accept or reject your subscription, in its sole discretion. If
     your subscription is rejected, your funds will be returned to you promptly,
     without any interest paid thereon. The Company may reject a subscription
     for any reason in its sole discretion.

3.   Send all documents to:

                    Mr. Charles R. Mollo
                    Mobility Electronics, Inc.
                    5528 Eubank Blvd., N.E., Suite 3
                    Albuquerque, New Mexico 87111

THE COMPLETED SUBSCRIPTION AGREEMENT SHOULD BE RETURNED IN ITS ENTIRETY TO THE
COMPANY AT THE ADDRESS DESIGNATED ABOVE.

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                      SUBSCRIPTION AGREEMENT SIGNATURE PAGE

PLEASE PRINT OR TYPE.  USE INK ONLY.  (ALL PARTIES MUST SIGN)

     The undersigned investor hereby certifies that he or she (i) agrees to all
the terms and conditions of this Purchase Agreement, (ii) meets the suitability
standards set forth in this Purchase Agreement and (iii) is a resident of the
state or foreign jurisdiction indicated below.

     (a) THE UNDERSIGNED IRREVOCABLY SUBSCRIBES FOR ____________ SHARES OF
SERIES C STOCK, AT A PURCHASE PRICE OF $6.00 PER SHARE ($______________________
IN THE AGGREGATE).

--------------------------------------------
Name of Subscriber (Print)                     if other than individual check
                                               one and indicate capacity of
                                               signatory under the signature:

                                               [ ] Trust
--------------------------------------------
Name of Joint Subscriber (if any) (Print)      [ ] Estate

                                               [ ] Uniform Gifts to Minors
                                                   Act of State of

X                                              [ ] Attorney-in-fact
--------------------------------------------
Signature of Subscriber                        [ ] Corporation

                                               [ ] Other
X
--------------------------------------------
Signature of Joint Subscriber (if any)         If Joint Ownership, check one:

                                               [ ] Joint Tenants with Right
                                                   of Survivorship
--------------------------------------------
Capacity of Signatory (if applicable)          [ ] Tenants in Common

                                               [ ] Tenants by the Entirety

                                               [ ] Community Property
--------------------------------------------
Social Security or Taxpayer
Identification Number
                                               Backup Withholding Statement:
                                               Please check this box only if
--------------------------------------------   the investor is subject to:
Residence Address                              [ ] backup withholding.

                                               Foreign Person:
--------------------------------------------
City             State           Zip Code      [ ] nonresident alien, foreign
                                                   corporation, foreign
                                                   partnership, foreign trust or
                                                   foreign estate
Telephone (   )___________________

The investor agrees to the terms of this Purchase Agreement and, as required by
the Regulations pursuant to the Internal Revenue Code, certifies under penalty
of perjury that (1) the Social Security Number or Taxpayer Identification Number
and address provided above is correct, (2) the investor is not subject to backup
withholding (unless the Backup Withholding Statement box is checked) either
because he has not been notified that he is subject to backup withholding as a
result of a failure to report all interest or dividends or because the Internal
Revenue Service has notified him that he is no longer subject to backup
withholding and (3) the investor (unless the Foreign Person box above is
checked) is not a nonresident alien, foreign partnership, foreign trust or
foreign estate.

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     THE SUBSCRIPTION FOR __________________ SHARES OF SERIES C STOCK AT A PRICE
OF $6.00 PER SHARE ($____________________ IN THE AGGREGATE) OF MOBILITY
ELECTRONICS, INC. BY THE ABOVE NAMED SUBSCRIBER(S) IS ACCEPTED AS OF THE
_________ DAY OF _________________, 1999.

                                    MOBILITY ELECTRONICS, INC.

                                    By:
                                       -----------------------------------------
                                       Charles R. Mollo, Chief Executive Officer

                                     Page 8
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                                   Appendix I
                               Registration Rights

1.   Registration Rights.  The Company covenants and agrees with you as follows:

     1.1 Definitions. For purposes of this Appendix I:

          (a) The term "Holder" means any person owning or having the right to
     acquire Registerable Securities or any assignee thereof in accordance with
     Section 1.11 hereof.

          (b) The term "1934 Act" shall mean the Securities Exchange Act of
     1934, as amended.

          (c) The term "Public Company" means a corporation which has a class of
     equity securities registered pursuant to Section 12 of the 1934 Act, or
     which is required to file periodic reports pursuant to Section 15(d) of the
     1934 Act.

          (d) The term "register," "registered," and "registration" refer to a
     registration effected by preparing and filing a registration statement or
     similar document in compliance with the Act, and the declaration or
     ordering of effectiveness of such registration statement or document.

          (e) The term "Registerable Securities" means (i) the shares of Common
     Stock issued or issuable upon the exercise of the Series C Stock and the
     Warrants and (ii) any Common Stock issued as (or issuable upon the
     conversion or exercise of any warrant, right or other security which is
     issued as) a dividend or other distribution with respect to, or in exchange
     for or in replacement of the shares referenced in (i) above, excluding in
     all cases, however, any Registerable Securities (I) sold by a person in a
     transaction in which his rights under this Section 1 are not assigned (II)
     registered under the Act, the registration statement in connection
     therewith has been declared effective, and such shares have been disposed
     by such holder pursuant to such registration statement; provided, however,
     that in either case of (i) or (ii) above, any such securities shall cease
     to be Registerable Securities if the registration rights granted hereunder
     are not transferred in accordance with the provisions of Section 1.11
     below.

          (f) The number of shares of "Registerable Securities then outstanding"
     shall be determined by the number of shares of Common Stock issued or
     issuable upon exercise of the Series C Stock and Warrants which are
     Registerable Securities.

          (g) The term "SEC" shall mean the Securities and Exchange Commission.

          (h) All other capitalized terms used herein which are not defined
     herein shall have the meaning given elsewhere in this Agreement.

     1.2 Demand Registration.

          (a) From and after January 1, 2001, the Holders of at least 66 2/3% of
     the then outstanding Registerable Securities may notify the Company in
     writing that such Holders desire for the Company to cause all or a portion
     of such notifying Holders' Registerable Securities to be registered for
     sale to the public under the Act. Upon receipt of such written request, the
     Company will promptly notify in writing all other Holders of Registerable
     Securities of such request, which Holders shall within twenty days
     following such notice from the Company, notify the Company in writing
     whether such persons desire to have Registerable Securities held by them
     included in such offering. The Company will, promptly following the
     expiration of such twenty day period, prepare and file subject to the
     provisions of this Section 1, and use its best efforts to prosecute to
     effectiveness, an appropriate filing with the SEC of a registration
     statement covering such Registerable Securities and the proposed sale or
     distribution thereof under the Act.

                                      A-1

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          (b) Notwithstanding anything in this Section 1.2 to the contrary, the
     Company shall not be obligated to prepare or file any registration
     statement pursuant to this Section 1.2 or to prepare or file any amendment
     or supplement thereto, at any time when the Company, in the good faith
     judgment of its Board of Directors, reasonably believes that the filing
     thereof at the time requested, or the offering of securities pursuant
     thereto, (i) would materially adversely affect a pending or proposed public
     offering of the Company's securities, or an acquisition, merger,
     recapitalization, consolidation, reorganization or similar transaction,
     negotiations, discussions or pending proposals with respect thereto or (ii)
     would materially adversely affect the business or prospects of the Company
     in view of the disclosures that may be required thereby of information
     about the business, assets, liabilities or operations of the Company not
     theretofore disclosed; provided, however, that the filing of a registration
     statement, or any supplement or amendment thereto, by the Company may be
     deferred pursuant to this Section 1.2 for no longer than 180 days (but only
     once in every twelve month period) after the delivery of such demand
     notice.

          (c) Notwithstanding anything in this Section 1.2 to the contrary: (i)
     the Company shall not be required to effect the registration of the
     Registerable Securities pursuant to this Section 1.2 more than one time;
     and (ii) the Company shall not be required to effect any such registration
     unless at least $5 million of Registerable Securities are to be sold in
     such registration (with such amount being determined based on the market
     price of the Common Stock on the date of the initiating Holder(s) request).
     If any registration pursuant to this Section 1.2 is in the form of an
     underwritten offering, the Company will select and obtain the investment
     banker or investment bankers and manager or managers that will administer
     the offering, which investment bankers must offer terms which are
     reasonably competitive in the marketplace for similar size companies and
     similar offerings. The Company shall (together with all Holders proposing
     to distribute Registerable Securities through such underwriting) enter into
     an underwriting agreement, containing usual and customary terms, with the
     managing underwriter selected for such underwriting. If any holder of
     Registerable Securities disapproves of the terms of the underwriting, such
     person may elect to withdraw therefrom by written notice to the Company and
     the managing underwriter. The Registerable Securities so withdrawn shall
     also be withdrawn from registration.

          (d) If any registration statement under this Section 1.2 is not
     declared effective (except for the reasons specified in Section 1.9 below
     and except as a result of Holders withdrawing Registerable Securities),
     then the holders of Registerable Securities may request an additional
     registration under this Section 1.2.

          (e) No registrations effected under this Section 1.2 shall relieve the
     Company of its obligations to effect any registrations under, and pursuant
     to the terms of, Sections 1.3 and 1.4 hereof.

     1.3 S-3 Registrations.

          (a) Once the Company is eligible to effect a registration of its
     securities under Form S-3 (or successor form), the Holders will have the
     right to request and have effected (but only one registration per twelve
     month period) registrations of Registerable Securities on Form S-3 as long
     as the aggregate proposed offering price is not less $3 million for any
     such registration. Upon written request of Holders holding at least $3
     million of Registerable Securities, the Company will promptly notify in
     writing all other Holders of Registerable Securities of such request, which
     Holders shall within twenty days following such notice from the Company,
     notify the Company in writing whether such persons desire to have
     Registerable Securities held by them included in such offering. Following
     the expiration of such twenty day period, the Company will use all
     reasonable efforts to cause the registration of all Registerable Securities
     proposed to be included in the offering on Form S-3 or such successor form
     to the extent so requested. Notwithstanding the above, the Company shall
     not be required under this Section 1.3 to include any of the Holders'
     Registerable Securities in any offering on Form S-3 which involves an
     underwriting unless such Holders accept the terms of such underwriting as
     agreed upon between the Company and the underwriters selected by it.

          (b) Notwithstanding anything in this Section 1.3 to the contrary, the
     Company shall not be obligated to prepare or file any registration
     statement pursuant to this Section 1.3 or to prepare or file any amendment
     or supplement thereto, at any time when the Company, in the good faith
     judgment of its Board of Directors, reasonably believes that the filing
     thereof at the time requested, or the offering of securities pursuant
     thereto, (i)

                                      A-2

<PAGE>

     would materially adversely affect a pending or proposed public offering of
     the Company's securities, or an acquisition, merger, recapitalization,
     consolidation, reorganization or similar transaction, negotiations,
     discussions or pending proposals with respect thereto or (ii) would
     materially adversely affect the business or prospects of the Company in
     view of the disclosures that may be required thereby of information about
     the business, assets, liabilities or operations of the Company not
     theretofore disclosed; provided, however, that the filing of a registration
     statement, or any supplement or amendment thereto, by the Company may be
     deferred pursuant to this Section 1.3 for no longer than 180 days (but only
     once in every twelve month period) after the delivery of such demand
     notice.

     1.4 Piggyback Registration. If (but without any obligation to do so) the
Company proposes to register (including for this purpose a registration effected
by the Company for stockholders other than the Holders) any of its Common Stock
or other securities under the Act in connection with the public offering of such
securities solely for cash (other than an initial public offering, registration
relating solely to the sale of securities to participants in a Company stock
option, stock purchase or similar employee benefit plan, a registration on any
form which does not include substantially the same information as would be
required to be included in a registration statement covering the sale of the
Registerable Securities (including Form S-4 or any form substitution thereof) or
a registration in which the only Common Stock being registered is Common Stock
issuable upon conversion of debt securities which are also being registered or a
SEC Rule 145 transaction), the Company shall, at such time, promptly give each
Holder written notice of such registration. Upon the written request of each
Holder given within twenty days after mailing of such notice by the Company, the
Company shall, subject to the provisions of Section 1.8, use all reasonable
efforts to cause to be registered under the Act and any applicable state
securities laws all of the Registerable Securities that each such Holder has
requested to be registered.

     1.5 Obligations of the Company. Whenever under this Section 1 the Company
effects the registration of any Registerable Securities, the Company shall, as
expeditiously as reasonably possible:

          (a) Prepare and file with the SEC on any appropriate form a
     registration statement with respect to the Registerable Securities proposed
     to be registered and use its best efforts to cause such registration
     statement to become effective;

          (b) Unless such registration is a firm commitment underwriting,
     prepare and file with the SEC such amendments (including post-effective
     amendments) and supplements to such registration statement and the
     prospectus used in connection therewith as may be necessary to keep such
     registration statement effective and to comply with the provisions of the
     Act with respect to the disposition of all Registerable Securities and
     other securities covered by such registration statement for a period of 180
     days.

          (c) Furnish to the Holders such numbers of copies of a prospectus,
     including a preliminary prospectus, in conformity with the requirements of
     the Act, and such other documents as they may reasonably request in order
     to facilitate the disposition of Registerable Securities owned by them.

          (d) Use its best efforts to register or qualify all Registerable
     Securities and other securities covered by such registration statement
     under such other securities or "blue sky" laws of such jurisdictions as the
     underwriter or such sellers (not to exceed ten jurisdictions) shall
     reasonably request and do any and all other acts and things as may be
     reasonably necessary to consummate the disposition in such jurisdictions of
     the Registerable Securities covered by such registration statement, except
     that the Company shall not for any such purpose be required to qualify
     generally to do business as a foreign corporation in any jurisdiction
     wherein it is not so qualified, or to subject itself to taxation in respect
     of doing business in any such jurisdiction, or to consent to general
     service of process in any such jurisdiction.

          (e) Immediately notify each seller of Registerable Securities covered
     by such registration statement, at any time when a prospectus relating
     thereto is required to be delivered under the Act, of the happening of any
     event as a result of which the prospectus included in such registration
     statement, as then in effect, includes an untrue statement of a material
     fact or omits to state any material fact required to be stated therein or
     necessary to make the statements therein not misleading in the light of the
     circumstances then existing or if its is necessary, in the

                                      A-3
<PAGE>

     opinion of counsel to the Company, to amend or supplement such prospectus
     to comply with law, and at the request of any such seller prepare and to
     such seller a reasonable number of copies of a supplement to or any
     amendment of such prospectus as may be necessary so that, as thereafter
     delivered to the purchasers of such Registerable Securities, such
     prospectus shall not include an untrue statement of a material fact or omit
     to state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in the light of the circumstances
     then existing and shall otherwise comply in all material respects with law
     and so that such prospectus, as amended or supplemented, will comply with
     law.

          (f) Otherwise use its best efforts to comply with all applicable rules
     and regulations of the SEC, any make available to its securityholders, as
     soon as reasonably practicable, an earnings statement covering the period
     of at least twelve (12) months, beginning with the first month of the first
     fiscal quarter after the effective date of such registration statement,
     which earnings statement shall satisfy the provisions of Section 11 (a) of
     the Act.

          (g) In the event of any underwritten public offering, enter into and
     perform its obligations under an underwriting agreement, in usual and
     customary form, with the managing underwriter of such offering. Each Holder
     participating in such underwriting shall also enter into and perform its
     obligations under such an agreement.

          (h) Notify each Holder of Registerable Securities covered by such
     registration statement at any time when a prospectus relating thereto is
     required to be delivered under the Act of the happening of any event as a
     result of which the prospectus included in such registration statement, as
     then in effect, includes an untrue statement of a material fact or omits to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading in the light of the circumstances
     then existing.

          (i) Cause all such Registerable Securities registered pursuant
     hereunder to be listed on each securities exchange or automated trading
     system on which similar securities issued by the Company are then listed.

          (j) Provide a transfer agent and registrar for all Registerable
     Securities registered pursuant hereunder and a CUSIP number for all such
     Registerable Securities, in each case not later than the effective date of
     such registration.

     1.6 Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1 with
respect to the Registerable Securities of any selling Holder that such Holder
shall furnish to the Company such information regarding itself, the Registerable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Holder's Registerable
Securities.

     1.7 Expenses of Registration. All expenses incurred in connection with
registrations, filings or qualifications pursuant to this Section 1, in
connection with one demand registration, all piggyback registrations and all S-3
registrations including, without limitation, all registration, filing and
qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Company (but excluding underwriter's commissions and fees and
any fees of others employed by a selling Holder) shall be borne by the Company.

     1.8 Underwriting Requirements; Cut-backs.

          (a) In connection with any offering involving an underwriting of
     shares of the Company's capital stock, the Company shall not be required to
     include any Holders' Registerable Securities in such underwriting unless
     they accept the terms of the underwriting as agreed upon between the
     Company and the underwriters selected by it (or by other persons entitled
     to select the underwriters), and then only in such quantity as the
     underwriters determine in their sole discretion will not materially
     jeopardize or in any way reduce the success of the offering by the Company.

                                      A-4

<PAGE>

          (b) The Company has previously granted "piggyback" registration rights
     to certain of its securityholders (the "Other Holders"). Notwithstanding
     any thing in this Section 1 to the contrary, in the event of any request
     for registration hereunder, the Company shall provide each Other Holder the
     notice required with respect to their registration rights and will allow
     such Other Holders to participate in any such registration to the extent of
     such registration rights; it being acknowledged and agreed that if the
     total amount of securities, including Registerable Securities, requested by
     security holders to be included in such offering exceeds the amount of
     securities that the underwriters determine in their sole discretion is
     compatible with the success of the offering (excluding any securities to be
     offered by the Company), then the Company shall be required to include in
     the offering only that number of such securities, including Registerable
     Securities, which the underwriters determine in their sole discretion will
     not jeopardize the success of the offering (the securities so included to
     be apportioned pro rata among the selling security holders (including
     Holders) according to the total amount of securities entitled to be
     included therein owned by each selling shareholder (including Holders) or
     in such other proportions as shall mutually be agreed to by such selling
     shareholders (including Holders)).

     1.9 Delay of Registration. No Holder shall have any right to obtain or seek
an injunction restraining or otherwise delaying any such registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Section 1.

     1.10 Indemnification. In the event any Registerable Securities are included
in a registration statement under this Section 1:

          (a) To the extent permitted by law, the Company will indemnify and
     hold harmless each Holder, any underwriter (as defined in the Act) for such
     Holder and each person, if any, who controls such Holder or underwriter
     within the meaning of the Act or the 1934 Act against any losses, claims,
     damages, or liabilities, joint or several) to which they may become subject
     under the Act, the 1934 Act or other federal or state law, insofar as such
     losses, claims, damages, or liabilities (or actions in respect thereof)
     arise out of or are based upon any of the following statements, omissions
     or violations (collectively a "Violation"): (i) any untrue statement or
     alleged untrue statement of a material fact contained in such registration
     statement, including any preliminary prospectus or final prospectus
     contained therein or any amendments or supplements thereto, (ii) the
     omission or alleged omission to state therein a material fact required to
     be stated therein, or necessary to make the statements therein not
     misleading, or (iii) any violation or alleged violation by the Company of
     the Act, the 1934 Act, any state securities law or any rule or regulation
     promulgated under the, the 1934 Act or any state securities law; and,
     subject to subsection 1.10 (c) below, the Company will pay to each such
     Holder, underwriter or controlling person, as incurred, any legal or other
     expenses reasonably incurred by them in connection with investigating or
     defending any such loss, claim, damage, liability, or action; provided,
     however, that the indemnity agreement contained in this subsection 1.10(a)
     shall not apply to amounts paid in settlement of any such loss, claim,
     damage, liability, or action if such settlement is effected without the
     consent of the Company (which consent shall not be reasonably withheld),
     nor shall the Company be liable in any such case for any such loss, claim,
     damage, liability, or action to the extent that it arises out of or is
     based upon a Violation which occurs in reliance upon and in conformity with
     written information furnished expressly for use in connection with such
     registration by any such Holder, underwriter or controlling person.

                                      A-5
<PAGE>

          (b) To the extent permitted by law, each selling Holder will indemnify
     and hold harmless the Company, each of its directors, each of its officers
     who has signed the registration statement, each person, if any, who
     controls the Company within the meaning of the Act, any underwriter, any
     other Holder selling securities in such registration statement and any
     controlling person of any such underwriter or other Holder, and any agent
     of the Company, against any losses, claims, damages, or liabilities joint
     or several) to which any of the foregoing persons may become subject, under
     the Act, the 1934 Act or other federal or state law, insofar as such
     losses, claims, damages, or liabilities (or actions in respect thereto)
     arise out of or are based upon any Violation, in each case to the extent
     (and only to the extent) that such Violation occurs in reliance upon and in
     conformity with written information furnished by such Holder expressly for
     use in connection with such registration; and each such Holder will pay, as
     incurred, any legal or other expenses reasonably incurred by any person
     intended to be indemnified pursuant to this subsection 1.10(b), in
     connection with investigating or defending any such loss, claim, damage,
     liability, or action; provided, however, that the indemnity agreement
     contained in this subsection 1.10(b) shall not apply to amounts paid in
     settlement of any such loss, claim, damage, liability or action if such
     settlement is effected without the consent of the Holder, which consent
     shall not be reasonably withheld; provided, that, in no event shall any
     indemnity under this subsection 1.10(b) exceed the gross proceeds from the
     offering received by such Holder.

          (c) Promptly after receipt by an indemnified party under this Section
     1.10 of notice of the commencement of any action (including any
     governmental action), such indemnified party will, if a claim in respect
     thereof is to be made against any indemnifying party under this Section
     1.10, deliver to the indemnifying party a written notice of the
     commencement thereof and the indemnifying party shall have the right to
     participate in, and, to the extent the indemnifying party so desires,
     jointly with any other indemnifying party receiving similar notice, to
     assume the defense thereof with counsel reasonably satisfactory to the
     parties; provided, however, that an indemnified party (together with all
     other indemnified party which may be represented without conflict by one
     counsel) shall have the right to retain one separate counsel, with the fees
     and expenses to be paid by the indemnifying party, if representation of
     such indemnified party by the counsel retained by the indemnifying party
     would be inappropriate due to actual or potential differing interests
     between such indemnified party and any other party represented by such
     counsel in such proceeding; otherwise, the indemnified party shall be
     responsible for the fees and expenses of its counsel. The failure to
     deliver written notice to the indemnifying party within a reasonable time
     of the commencement of any such action, if prejudicial to its ability to
     defend such action, shall relieve such indemnifying party of any liability
     to the indemnified party under this Section 1.10.

          (d) Except as provided in the last sentence of subsection 1.10(c)
     above, if the indemnification provided for in this Section 1.10 is held by
     a court of competent jurisdiction to be unavailable to an indemnified party
     with respect to any loss, liability, claim, damage, or expense referred to
     therein, then the indemnifying party, in lieu of indemnifying such
     indemnified party hereunder, shall contribute to the amount paid or payable
     by such indemnified party as a result of such loss, liability, claim,
     damage, or expense in such proportion as is appropriate to reflect the
     relative fault of the indemnifying party on the one hand and of the
     indemnified party on the other in connection with the statements or
     omissions that resulted in such loss, liability, claim, damage, or expense
     as well as any other relevant equitable considerations. The relative fault
     of the indemnifying party and of the indemnified party shall be determined
     by reference to, among other things, whether the untrue or alleged untrue
     statement of a material fact or the omission to state a material fact
     relates to information supplied by the indemnifying party or by the
     indemnified party.

          (e) Notwithstanding the foregoing, to the extent that the provisions
     on indemnification and contribution contained in the underwriting agreement
     entered into in connection with the underwritten public offering are in
     conflict with the foregoing provisions, the provisions in the underwriting
     agreement shall control.

          (f) The obligations of the Company and Holders under this Section 1.10
     shall survive the completion of any offering of Registerable Securities
     pursuant to a registration statement under this Section 1.

     1.11 Assignment of Registration Rights. The registration rights of the
Holders under this Section 1 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities who

                                      A-6
<PAGE>

purchases from such Holder at least 10,000 shares of Registerable Securities
(subject to appropriate adjustment for stock splits, stock dividends,
combinations and other recapitalizations), provided: (a) the Company is promptly
after such transfer, furnished with written notice of the name and address of
such transferee or assignee and the securities with respect to which such
piggyback registration rights are being assigned; (b) such transferee or
assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement, including without limitation the provisions of
Section 1. 12 below; and (c) such assignment shall be effective only if
immediately following such transfer the further disposition of such securities
by the transferee or assignee is restricted under the Act.

     1.12 Lock-up Agreement. Each Holder hereby agrees that if requested by the
Company or the underwriters in any underwritten offering, such Holder shall not,
for the period of 180 days after the effective date of an underwritten public
offering of shares of Common Stock, without the prior written approval of the
Company or such underwriters (as the case may be), directly or indirectly, sell,
offer to sell, contract to sell (including without limitation, any short sale),
grant any option to purchase or otherwise transfer or dispose of any shares of
Common Stock underlying the Warrants legally or beneficially owned by such
Holder; provided, however, in the event of an initial public offering of Common
Stock, no request shall be necessary, with the consent of such Holder to the
above provisions in this Section 1.12 being hereby granted and accepted,
provided that if the managing underwriter in such initial public offering
requests that Holder execute and deliver a lock-up letter, Holder agrees to do
so, which lock-up letter shall be in such managing underwriter's customary form.
In order to enforce the foregoing covenant, the Company may impose stop-transfer
instructions with respect to the Registerable Securities of each Holder (and the
shares or securities of every other person subject to the foregoing restriction)
until the end of such period.

     1.13 Termination of Registration Rights. Notwithstanding anything in this
Section 1 to the contrary, no Holder shall be entitled to exercise any right
provided for in this Section 1: (i) at any time more than four (4) years
following the date after the Company becomes a Public Company or (ii) at such
time as such Holder is able to sell all of such Holder's Registerable Securities
in a single three-month period in compliance with Rule 144.

     1.14 Amendments and Waivers. Any term or provision of the registration
rights stated in this Section 1 may be amended and the observance of any term of
such rights may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of the
Company and the holders of at a majority of the Registerable Securities then
outstanding. Any amendment or waiver effected in accordance with this Section
1.14 shall be binding upon each holder of any Registerable Securities then
outstanding, each future holder of any Registerable Securities, and the Company.

                                      A-7<PAGE>
                                                                    EXHIBIT 4.16

                           MOBILITY ELECTRONICS, INC.

             SERIES C PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                                OCTOBER 29, 1999

<PAGE>

                           MOBILITY ELECTRONICS, INC.

             SERIES C PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     This Series C Preferred Stock and Warrant Purchase Agreement (the
"Agreement") is made as of the 29th day of October, 1999, by and between
Mobility Electronics, Inc., a Delaware corporation (the "Company"), and Seligman
Communications and Information Fund, Inc. (the "Purchaser").

     The parties hereby agree as follows:

     1. PURCHASE AND SALE OF PREFERRED STOCK AND WARRANT.

        1.1 SALE AND ISSUANCE OF SERIES C PREFERRED STOCK AND WARRANT.

            (a) The Company has adopted and filed with the Secretary of State of
the State of Delaware a Certificate of the Designations, Preferences, Rights and
Limitations of Series C Preferred Stock of the Company, a copy of which is
attached hereto as Exhibit A (the "Certificate of Designations").

            (b) Subject to the terms and conditions of this Agreement, Purchaser
agrees to purchase at the Closing (as defined below) and the Company agrees to
sell and issue to Purchaser at the Closing 333,333 shares of Series C Preferred
Stock at a purchase price of $6.00 per share; provided, however, that to the
extent any shares of Series C Preferred Stock are sold by the Company at a price
less than $6.00 per share, Purchaser will receive, and the Company agrees to
issue, additional shares of Series C Preferred Stock so that Purchaser receives
the benefit of such lower issuance price by issuing additional shares of Series
C Preferred Stock in an amount equal to the remainder of (i) the aggregate
amount of Purchaser's original investment divided by such lower issuance price
minus (ii) the aggregate number of shares of Series C Preferred Stock then
issued to Purchaser (subject to adjustment for all stock splits, stock
dividends, combinations, recapitalization and the like). The shares of Series C
Preferred Stock issued to Purchaser pursuant to this Agreement shall be
hereinafter referred to as the "Stock".

            (c) Subject to the terms and conditions of this Agreement, at the
Closing the Company agrees to issue to Purchaser, at no additional cost, a
warrant to purchase up to 666,666 shares of common stock, par value $0.01 per
share (the "Common Stock"), of the Company, at an exercise price of $0.01 per
share, which warrant shall be in the form of Exhibit B attached hereto (the
"Warrant").

                                    Page  1
<PAGE>
        1.2 CLOSING; DELIVERY.

            (a) The purchase and sale of the Stock shall take place at the
offices of Jackson Walker L.L.P., 901 Main Street, Suite 6000, Dallas, Texas, at
10:00 a.m., on the date hereof, or at such other time and place as the Company
and the Purchasers mutually agree upon, orally or in writing (which time and
place are designated as the "Closing").

            (b) At the Closing, the Company shall deliver to Purchaser: (i) a
certificate representing the Stock being purchased hereby; and (ii) the Warrant,
against payment of $1,999,998 by wire transfer to the Company's bank account.

     2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company hereby
represents and warrants to each Purchaser that, except as set forth on a
Schedule of Exceptions attached hereto as Exhibit C, which exceptions shall be
deemed to be representations and warranties as if made hereunder:

        2.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has all requisite corporate power and authority to:
(i) carry on its business as now conducted and proposed to be conducted; (ii)
execute and deliver this Agreement and, the Investors' Rights Agreement in the
form attached hereto as Exhibit D (the "Investors' Rights Agreement") (together
with this Agreement, the "Agreements") and (iii) issue and sell the Stock, the
Warrant and the Common Stock issuable upon conversion of the Stock and exercise
of the Warrant (together, the "Securities") and to carry out the provisions of
the Agreements. The Company is duly qualified to transact business and is in
good standing in each jurisdiction in which the failure so to qualify would have
a material adverse effect on its business or properties. The jurisdictions in
which the Company is qualified to do business are listed on the Schedule of
Exceptions set forth in Exhibit C attached hereto.

        2.2 CAPITALIZATION. The authorized capital of the Company consists of:

            (a) 5,000,000 shares of Preferred Stock, of which (i) 2,500 shares
have been designated Series A Preferred Stock, none of which are issued and
outstanding; (ii) 4,186 shares have been designated Series B Preferred Stock,
none of which are issued and outstanding; and (iii) 4,500,000 shares have been
designated Series C Preferred Stock, 1,166,365 of which are issued and
outstanding immediately prior to the Company's current $5 million offering of
Series C Preferred Stock. All of the outstanding shares of Series C Preferred
Stock have been duly and validly authorized, fully paid and are nonassessable
and issued in compliance with all applicable federal and state securities laws.

            (b) 75,000,000 shares of Common Stock, 10,992,825 shares of which
are issued and outstanding immediately prior to the Closing. All of the
outstanding shares of Common

                                     Page 2
<PAGE>

Stock have been duly and validly authorized, fully paid and are nonassessable
and issued in compliance with all applicable federal and state securities laws.

            (c) The Company has reserved 1,197,282 shares of Common Stock for
issuance to officers, directors, employees and advisors of the Company pursuant
to the Company's Amended and Restated 1996 Long Term Incentive (the "Stock
Plan"), and has issued and outstanding options under the Stock Plan to purchase
703,456 shares of Common Stock as of September 30, 1999.

            (d) The Company has issued and outstanding the following other
securities: (i) warrants to purchase 3,330,059 shares of Common Stock (ii)
options to purchase 264,396 shares of Common Stock and (iii) approximately
$95,000 of 12% Convertible Debentures, 60% of which is convertible into shares
of Common Stock at a conversion price of $3.86 per share.

            (e) Except for (i) conversion privileges of the Series C Preferred
Stock, (ii) outstanding options issued pursuant to the Stock Plan, (iii)
conversion and exercise privileges of the securities described in subsections
(c) and (d) above, there are no outstanding options, warrants, rights (including
conversion or preemptive rights and rights of first refusal or similar rights)
or agreements, orally or in writing, for the purchase or acquisition from the
Company of any shares of its capital stock. The Company is not a party or
subject to any agreement or understanding, and there is no agreement or
understanding between any person and/or entities, which affects or relates to
the voting or giving of written consents with respect to any security or by a
director of the Company. The Company has outstanding the registration rights set
forth in Section 2.2 of Exhibit C.

        2.3 SUBSIDIARIES. The Company does not currently own or control,
directly or indirectly, any interest in any other corporation, association, or
other business entity.

        2.4 AUTHORIZATION. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization, execution
and delivery of the Agreements, the performance of all obligations of the
Company under the Agreements and the authorization, issuance, sale and delivery
of the Securities has been taken or will be taken prior to the Closing, and the
Agreements, when executed and delivered by the Company, shall constitute valid
and legally binding obligations of the Company, enforceable against the Company
in accordance with their terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of
general application affecting enforcement of creditors' rights generally, as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, or (ii) to the extent the indemnification
provisions contained in the Investors' Rights Agreement may be limited by
applicable federal or state securities laws.

        2.5 VALID ISSUANCE OF SECURITIES. The Stock that is being issued to the
Purchasers hereunder, when issued, sold and delivered in accordance with the
terms hereof for the

                                     Page 3
<PAGE>

consideration expressed herein, will be duly and validly issued, fully paid and
nonassessable and free of restrictions on transfer other than restrictions on
transfer under the Agreements and applicable state and federal securities laws.
Based in part upon the representations of the Purchasers in this Agreement, the
Stock will be issued in compliance with all applicable federal and state
securities laws. The Common Stock issuable upon conversion of the Stock and
exercise of the Warrant has been duly and validly reserved for issuance, and
upon issuance in accordance with the terms of the Certificate of Designations or
the Warrant (as the case may be), shall be duly and validly issued, fully paid
and nonassessable and free of restrictions on transfer other than restrictions
on transfer under the Agreements, and applicable federal and state securities
laws and will be issued in compliance with all applicable federal and state
securities laws.

        2.6 GOVERNMENTAL CONSENTS. No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any
federal, state or local governmental authority on the part of the Company is
required in connection with the consummation of the transactions contemplated by
this Agreement, except for filings pursuant to applicable state securities laws
and Regulation D of the Securities Act of 1933, as amended (the "Securities
Act") which filing will be effected within fifteen (15) days after the sale of
the Stock.

        2.7 LITIGATION. There is no action, suit, proceeding or investigation
pending or, to the best knowledge of the Company, currently threatened against
the Company or any of its subsidiaries that questions the validity of the
Agreements or the right of the Company to enter into them, or to consummate the
transactions contemplated hereby or thereby, or that might result, either
individually or in the aggregate, in any material adverse changes in the assets,
condition or affairs of the Company, financially or otherwise, or any change in
the current equity ownership of the Company, nor is the Company aware that there
is any basis for the foregoing. The foregoing includes, without limitation,
actions pending or to the best knowledge of the Company threatened in writing
involving the prior employment of any of the Company's employees, their use in
connection with the Company's business of any information or techniques
allegedly proprietary to any of their former employers. Neither the Company nor
any of its subsidiaries is a party or subject to the provisions of any order,
writ, injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by the
Company or any of its subsidiaries currently pending or which the Company or any
of its subsidiaries intends to initiate.

        2.8 INTELLECTUAL PROPERTY. The Company owns or possesses sufficient
title and ownership of or licenses to all patents, trademarks, service marks,
trade names, copyrights, trade secrets, licenses, information and proprietary
rights and processes necessary for its business as conducted and proposed to be
conducted without any conflict with, or infringement of, the rights of others.
There are no outstanding options, licenses or agreements of any kind relating to
the foregoing, nor is the Company bound by or a party to any options, licenses
or agreements of any kind with respect to the patents, trademarks, service
marks, trade names, copyrights, trade secrets, licenses, information and other
proprietary rights and processes of any other person or entity other

                                     Page 4
<PAGE>

than such licenses or agreements arising from the purchase of "off the shelf" or
standard commercial products. The Company has not received any communications
alleging that the Company has violated or, by conducting its business, would
violate any of the patents, trademarks, service marks, trade names, copyrights,
trade secrets or other proprietary rights or processes of any other person or
entity. The Company, to the best of its knowledge, is not aware that any of its
employees is obligated under any contract (including licenses, covenants or
commitments of any nature) or other agreement, or subject to any judgment,
decree or order of any court or administrative agency, that would interfere with
the use of such employee's best efforts to promote the interest of the Company
or that would conflict with the Company's business. To the best knowledge of the
Company, neither the execution or delivery of this Agreement, nor the carrying
on of the Company's business by the employees of the Company, nor the conduct of
the Company's business as proposed, will conflict with or result in a breach of
the terms, conditions, or provisions of, or constitute a default under, any
contract, covenant or instrument under which any such employee is now obligated.
The Company does not believe it is or will be necessary to use any inventions of
any of its employees (or persons it currently intends to hire) made prior to
their employment by the Company.

        2.9 COMPLIANCE WITH OTHER INSTRUMENTS.

            (a) The Company is not in violation or default of any provisions of
(i) its Certificate of Incorporation or Bylaws (as such documents are in force
and effect as of the Closing Date) or (ii) any instrument, judgment, order,
writ, decree or contract to which it is a party or by which it is bound, the
violation of, or default, which would have a material adverse effect on the
Company, or, to the best knowledge of the Company, of any provision of federal
or state statute, rule or regulation applicable to the Company. The execution,
delivery and performance of the Agreements and the consummation of the
transactions contemplated hereby or thereby will not result in any such
violation or be in conflict with or constitute, with or without the passage of
time and giving of notice, either a default under any such provision,
instrument, judgment, order, writ, decree or contract or an event which results
in the creation of any lien, charge or encumbrance upon any assets of the
Company.

            (b) The Company has avoided every condition, and has not performed
any act, the occurrence of which would result in the Company's loss of any right
granted under any license, distribution agreement or other agreement.

        2.10 AGREEMENTS; ACTION.

            (a) There are no agreements, understandings or proposed transactions
between the Company and any of its officers, directors, affiliates, or any
affiliate thereof.

            (b) Except as created or incurred in the ordinary course of
business, as related to the Company's Universal Docking Station, or for
agreements explicitly contemplated by the Agreements, there are no agreements,
understandings, instruments, contracts or proposed

                                    Page 5
<PAGE>

transactions to which the Company or any of its subsidiaries is a party or by
which it is bound that involve (i) obligations (contingent or otherwise) of, or
payments to, the Company or any of its subsidiaries in excess of, $100,000, (ii)
the license of any patent, copyright, trade secret or other proprietary right to
or from the Company or any of its subsidiaries, (iii) the grant of rights
(excluding contract manufacturing rights and relationships) to manufacture,
produce, assemble, license, market, or sell its products to any other person or
affect the Company's exclusive right to develop, manufacture, assemble,
distribute, market or sell its products; or (iv) indemnification by the Company
with respect to infringement of proprietary rights (other than indemnification
obligations arising from purchase or sale agreements entered into in the
ordinary course of business).

            (c) Neither the Company nor any of its subsidiaries has (i) declared
or paid any dividends, or authorized or made any distribution upon or with
respect to any class or series of its capital stock, (ii) incurred any
indebtedness for money borrowed or incurred any other liabilities individually
in excess of $25,000 or in excess of $100,000 in the aggregate, other than in
the ordinary course of business, (iii) made any loans or advances to any person,
other than ordinary advances for travel and relocation expenses and the like, or
(iv) sold, exchanged or otherwise disposed of any of its assets or rights, other
than the sale of its inventory in the ordinary course of business.

        2.11 DISCLOSURE. The Company has fully provided Purchaser with all the
information that Purchaser has requested for deciding whether to acquire the
Stock and the Warrant and all information that the Company believes is
reasonably necessary to enable the Purchaser to make such a decision, including
the Company's 1999 Company Overview, dated September 1999 (the "Company
Overview"). No representation or warranty of the Company contained in this
Agreement and the exhibits attached hereto, any certificate furnished or to be
furnished to Purchaser at the Closing, or the Company Overview (when read
together) contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained herein or
therein not misleading in light of the circumstances under which they were made.
To the extent the Company Overview was prepared by management of the Company,
the Company Overview and the financial and other projections contained in the
Company Overview and other written information provided to the Purchaser were
prepared in good faith (with the exception of information prepared by third
party sources and identified as such in the Company Overview or other written
information and to which the Company makes no representation except that it has
no basis to believe such sections are inaccurate); however, the Company does not
warrant that it will achieve such projections.

        2.12 NO CONFLICT OF INTEREST. The Company is not indebted, directly or
indirectly, to any of its officers or directors or to their respective spouses
or children, in any amount whatsoever other than in connection with expenses or
advances of expenses incurred in the ordinary course of business or relocation
expenses of employees which amount does not in the aggregate exceed $50,000.
None of the Company's officers or directors, or any members of their immediate
families, are, directly or indirectly, indebted to the Company (other than in
connection with purchases of the

                                    Page 6
<PAGE>

Company's stock) or to the best knowledge of the Company have any direct or
indirect ownership interest in any firm or corporation with which the Company is
affiliated or with which the Company has a business relationship, or any firm or
corporation which competes with the Company except that officers, directors
and/or stockholders of the Company may own stock in (but not exceeding two
percent of the outstanding capital stock of) any publicly traded company that
may compete with the Company. None of the Company's officers or directors or any
members of their immediate families are, directly or indirectly, interested in
any material contract with the Company. The Company is not a guarantor or
indemnitor of any indebtedness of any other person, firm or corporation.

        2.13 RIGHTS OF REGISTRATION AND VOTING RIGHTS. Except as contemplated in
the Investors' Rights Agreement, the Company has not granted or agreed to grant
any registration rights, including piggyback rights, to any person or entity. To
the best knowledge of the Company, no stockholder of the Company has entered
into any agreements with respect to the voting of capital shares of the Company.

        2.14 TITLE TO PROPERTY AND ASSETS. The Company owns its property and
assets free and clear of all mortgages, liens, loans and encumbrances, except
such encumbrances and liens which arise in the ordinary course of business and
do not materially impair the Company's ownership or use of such property or
assets. With respect to the property and assets it leases, the Company is in
compliance with such leases and, to its knowledge, holds a valid leasehold
interest free of any liens, claims or encumbrances. The Company is in compliance
with all material terms of each material lease to which it is a party or
otherwise bound.

        2.15 FINANCIAL STATEMENTS. The Company has made available to Purchaser
the financial statements set forth in the Company Overview (collectively, the
"Financial Statements"). The Financial Statements have been prepared in
accordance with generally accepted accounting principles applied on a consistent
basis throughout the periods indicated, except that the unaudited Financial
Statements may not contain all footnotes required by generally accepted
accounting principles. The Financial Statements fairly present the financial
condition and operating results of the Company as of the dates, and for the
periods, indicated therein, subject to normal year-end audit adjustments. Except
as set forth in the Financial Statements, the Company has no material
liabilities, contingent or otherwise, other than (i) liabilities incurred in the
ordinary course of business subsequent to June 30, 1999 and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and
not required under generally accepted accounting principles to be reflected in
the Financial Statements, which, in both cases, individually or in the aggregate
are not material to the financial condition or operating results of the Company.

        2.16 CHANGES. Since June 30, 1999 there has not been:

            (a) any change in the assets, liabilities, financial condition or
operating results of the Company from that reflected in the Financial
Statements, except actions contemplated

                                    Page 7
<PAGE>

in the Company Summary and changes in the ordinary course of business that have
not been, in the aggregate, materially adverse;

            (b) any damage, destruction or loss, whether or not covered by
insurance, materially and adversely affecting the business, properties,
prospects, or financial condition of the Company;

            (c) any waiver or compromise by the Company of a valuable right or
of a material debt owed to it;

            (d) any satisfaction or discharge of any lien, claim, or
encumbrance or payment of any obligation by the Company, except in the ordinary
course of business and that is not material to the business, properties,
prospects or financial condition of the Company;

            (e) any material change to a material contract or agreement by which
the Company or any of its assets is bound or subject;

            (f) any material change in any compensation arrangement or agreement
with any employee, officer, director or stockholder;

            (g) any sale, assignment or transfer of any patents, trademarks,
copyrights, trade secrets or other intangible assets;

            (h) any resignation or termination of employment of any officer or
key employee of the Company; and the Company is not aware of any impending
resignation or termination of employment of any such officer or key employee;

            (i) any mortgage, pledge, transfer of a security interest in, or
lien, created by the Company, with respect to any of its material properties or
assets, except liens for taxes not yet due or payable;

            (j) any loans or guarantees made by the Company to or for the
benefit of its employees, officers or directors, or any members of their
immediate families, other than travel advances and other advances made in the
ordinary course of its business;

            (k) any declaration, setting aside or payment or other distribution
in respect to any of the Company's capital stock, or any direct or indirect
redemption, purchase, or other acquisition of any of such stock by the Company;

            (l) any declaration or payment of any dividend or other distribution
of the assets of the Company;

                                     Page 8
<PAGE>

            (m) receipt of notice by the Company that there has been a loss of,
or material order cancellation by, any major customer of the Company;

            (n) to the Company's knowledge, any other event or condition of any
character that might materially and adversely affect the business, properties,
prospects or financial condition of the Company; or

            (o) any arrangement or commitment by the Company to do any of the
things described in this Section 2.16.

        2.17 EMPLOYEE BENEFIT PLANS. The Company does not have any Employee
Benefit Plan as defined in the Employee Retirement Income Security Act of 1974.

        2.18 TAX RETURNS AND PAYMENTS. The Company has filed all tax returns and
reports as required by law. These returns and reports are true and correct in
all material respects. The Company has paid all taxes and other assessments due.
The Company has not made any elections pursuant to the Internal Revenue Code of
1986, as amended (the "Code") (other than elections that relate solely to
methods of accounting, depreciation or amortization) that would have a material
effect on the Company, its financial condition, its business as presently
conducted or proposed to be conducted or any of its properties or material
assets. The Company had never had any tax deficiency proposed or assessed
against it and has not executed any waiver of any statute of limitations on the
assessment or collection of any tax or governmental charge. None of the
Company's federal income tax returns and none of its state income or franchise
tax or sales or use tax returns has ever been audited by governmental
authorities. Since the date of the Financial Statements, the Company has not
incurred any taxes, assessments or governmental charges other than in the
ordinary course of business and the Company has made adequate provisions on its
books of account for all taxes, assessments and governmental charges with
respect to its business, properties and operations for such period. The Company
has withheld or collected from each payment made to each of its employees, the
amount of all taxes (including, but not limited to, federal income taxes,
federal Insurance Contribution Act taxes and Federal Unemployment Tax Act taxes)
required to be withheld or collected therefrom, and has paid the same to the
proper tax receiving officers or authorized depositories.

        2.19 INSURANCE. The Company has in full force and effect fire and
casualty insurance policies, with extended coverage, sufficient in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

        2.20 LABOR AGREEMENTS AND ACTIONS. The Company is not bound by or
subject to (and none of its assets or properties is bound by or subject to) any
written or oral, express or implied, contract, commitment or arrangement with
any labor union, and no labor union has requested or, to the best knowledge of
the Company, has sought to represent any of the employees, representatives or
agents of the Company. There is no strike or other labor dispute involving the

                                    Page 9
<PAGE>

Company pending, or to the best knowledge of the Company threatened, which could
have a material adverse effect on the assets, properties, financial condition,
operating results, or business of the Company, nor is the Company aware of any
labor organization activity involving its employees. The Company is not aware
that any officer or key employee, or that any group of key employees, intends to
terminate their employment with the Company, nor does the Company have a present
intention to terminate the employment of any of the foregoing. The employment of
each officer and employee of the Company is terminable at the will of the
Company. The Company has complied in all material respects with all applicable
state and federal equal employment opportunity laws and with other laws related
to employment. The Company is not a party to or bound by any currently effective
employment contract, deferred compensation agreement, bonus plan, incentive
plan, profit sharing plan, retirement agreement, or other employee compensation
agreement.

        2.21 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENTS.
Substantially all current employees and officers of the Company have executed an
agreement with the Company regarding confidentiality and proprietary information
substantially in the form or forms delivered to the counsel for the Purchasers.
The Company is not aware that any of its employees or consultants is in
violation thereof.

        2.22 PERMITS. The Company and each of its subsidiaries has all
franchises, permits, licenses and any similar authority necessary for the
conduct of its business, the lack of which could materially and adversely affect
the business, properties, prospects, or financial condition of the Company. The
Company is not in default in any material respect under any of such franchises,
permits, licenses or other similar authority.

        2.23 CORPORATE DOCUMENTS. The Certificate of Incorporation and Bylaws of
the Company are in the form provided to counsel for the Purchasers. The copy of
the minute books of the Company provided to the Purchasers' counsel contains
minutes of all meetings of directors and stockholders and all actions by written
consent without a meeting by the directors and stockholders since the date of
incorporation and reflects all actions by the directors (and any committee of
directors) and stockholders with respect to all transactions referred to in such
minutes accurately in all material respects.

        2.24 ENVIRONMENTAL AND SAFETY LAWS. The Company is not in violation of
any applicable statute, law or regulation relating to the environment or
occupational health and safety, and to its knowledge, no material expenditures
are or will be required in order to comply with any such existing statute, law
or regulation.

        2.25 OFFERING. Subject in part to the truth and accuracy of each
Purchaser's representations and warranties set forth in Section 3 of this
Agreement, the offer, sale and issuance of the Securities as contemplated by
this Agreement are exempt from the registration requirements of the Securities
Act and any applicable state securities laws, and neither the Company nor any

                                    Page 10
<PAGE>

authorized agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

        2.26 SIGNIFICANT CUSTOMERS AND SUPPLIERS. No customer or supplier that
was significant to the Company during the period from June 30, 1999 to the date
hereof has terminated, materially reduced or threatened to terminate or
materially reduce its purchases from or provision of products or services to the
Company, as the case may be.

        2.27 OUTSTANDING CAPITAL STOCK. There are no issued and outstanding
shares of capital stock of the Company which have dividend or redemption rights,
liquidation preferences, conversion rights, voting rights or otherwise which are
superior to or on a party with the Series C Preferred Stock.

        2.28 YEAR 2000 COMPLIANCE. To the best knowledge of the Company after
due inquiry, the Company's software, hardware and other computer and information
technology (collectively, "Information Technology") is Year 2000 Compliant (as
defined in the next sentence). "Year 2000 Compliant" shall mean that such
Information Technology is designed to be used prior to, during and after the
calendar year 2000 A.D., and such Information Technology used during each such
time period shall accurately receive, provide and process data/time data
(including, but not limited to. calculation, comparing and sequencing) from,
into and between the twentieth and twenty-first centuries, including the years
1999 and 2000, and leap year calculations and will not malfunction, cease to
function, or provide invalid or incorrect results as a result of data/time data,
to the extent that other information technology, used in combination of the
information technology being acquired, properly exchanges data/time data with
it.

     3. REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser hereby represents
and warrants to the Company that:

        3.1 AUTHORIZATION. Purchaser has full power and authority to enter into
this Agreement. The Agreements, when executed and delivered by Purchaser, will
constitute valid and legally binding obligations of Purchaser, enforceable in
accordance with their terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other
laws of general application affecting enforcement of creditors' rights
generally, and as limited by laws relating to the availability of a specific
performance, injunctive relief, or other equitable remedies, or (b) to the
extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable federal or state securities laws.

        3.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made with
Purchaser in reliance upon Purchaser's representation to the Company, which by
Purchaser's execution of this Agreement Purchaser hereby confirms, that the
Securities to be acquired by Purchaser will be acquired for investment for
Purchaser's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that Purchaser has no present

                                    Page 11
<PAGE>

intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, Purchaser further represents that
Purchaser does not presently have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant participation to such
person or to any third person, with respect to any of the Securities. Purchaser
has not been formed for the specific purpose of acquiring the Securities.

        3.3 DISCLOSURE OF INFORMATION. Purchaser has had an opportunity to
discuss the Company's business, management, financial affairs and the terms and
conditions of the offering of the Stock and Warrant with the Company's
management and has had an opportunity to review the Company's facilities.
Purchaser understands that such discussions, as well as the Company Overview and
any other written information delivered by the Company to Purchaser, were
intended to describe the aspects of the Company's business which it believes to
be material.

        3.4 RESTRICTED SECURITIES. Purchaser understands that the Securities
have not been, and will not be, registered under the Securities Act, by reason
of a specific exemption from the registration provisions of the Securities Act
which depends upon, among other things, the bona fide nature of the investment
intent and the accuracy of Purchaser's representations as expressed herein.
Purchaser understands that the Securities are "restricted securities" under
applicable U.S. federal and state securities laws and that, pursuant to these
laws, Purchaser must hold the Securities indefinitely unless they are registered
with the Securities and Exchange Commission and qualified by state authorities,
or an exemption from such registration and qualification requirements is
available. Purchaser acknowledges that the Company has no obligation to register
or qualify the Securities for resale except as set forth in the Investors'
Rights Agreement. Purchaser further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Securities, and on requirements relating to the Company
which are outside of Purchaser's control, and which the Company is under no
obligation and may not be able to satisfy.

        3.5 NO PUBLIC MARKET. Purchaser understands that no public market now
exists for any of the securities issued by the Company, and that the Company has
made no assurances that a public market will ever exist for the Securities.

        3.6 LEGENDS. Purchaser understands that the Securities, and any
securities issued in respect of or exchange for the Securities, may bear one or
all of the following legends (or substantially similar legends):

            (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A
FORM SATISFACTORY TO THE

                                    Page 12
<PAGE>

COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933."

            (b) Any legend set forth in the other Agreements.

            (c) Any legend required by the Blue Sky laws of any state to the
extent such laws are applicable to the shares represented by the certificate so
legended.

        3.7 ACCREDITED INVESTOR. Purchaser is an accredited investor as defined
in Rule 501(a) of Regulation D promulgated under the Securities Act as
presently in effect.

     4. CONDITIONS OF THE PURCHASERS' OBLIGATIONS AT CLOSING. The obligations of
Purchaser to the Company under this Agreement are subject to the fulfillment, on
or before the Closing, of each of the following conditions, unless otherwise
waived:

        4.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of the Company contained in Section 2 shall be true and correct on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the date of the Closing.

        4.2 PERFORMANCE. The Company shall have performed and complied with all
covenants, agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before the
Closing.

        4.3 COMPLIANCE CERTIFICATE. The President of the Company shall deliver
to the Purchasers at the Closing a Compliance Certificate certifying that the
conditions specified in Sections 4.1 and 4.2 have been fulfilled.

        4.4 CONSENTS; QUALIFICATIONS. The Company shall have obtained any and
all consents, permits and waivers necessary or appropriate for consummation of
the transactions contemplated by the Agreements (except for such as may be
properly obtained subsequent to the Closing Date). All authorizations, approvals
or permits, if any, of any governmental authority or regulatory body of the
United States or of any state that are required in connection with the lawful
issuance and sale of the Stock pursuant to this Agreement shall be obtained and
effective as of the Closing.

        4.5 OPINION OF COMPANY COUNSEL. Purchaser shall have received from
Jackson Walker L.L.P., counsel for the Company, an opinion, dated as of the
Closing, in substantially the form of Exhibit E.

        4.6 RESERVATION OF COMMON STOCK ISSUABLE UPON CONVERSION OF THE STOCK
AND EXERCISE OF THE WARRANT. The Common Stock issuable upon conversion of the
Stock and

                                    Page 13
<PAGE>

exercise of the Warrant shall have been duly authorized and reserved for
issuance upon such conversion.

        4.7 INVESTOR'S RIGHTS AGREEMENT. The Company and Purchaser shall have
executed and delivered the Investor's Rights Agreement in substantially the form
attached as Exhibit D.

        4.8 DUE DILIGENCE. Purchaser shall, in its sole discretion have
completed their legal and financial due diligence and the results of such due
diligence shall, in the sole discretion of Purchaser, be acceptable to Purchaser
and its legal counsel. The Schedule of Exceptions delivered to Purchaser by the
Company shall contain no exception deemed unacceptable by Purchaser in its sole
discretion.

     5. CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING. The obligations of
the Company to Purchaser under this Agreement are subject to the fulfillment, on
or before the Closing, of each of the following conditions, unless otherwise
waived:

        5.1 REPRESENTATIONS AND WARRANTIES. The representations and warranties
of Purchaser contained in Section 3 shall be true and correct on and as of the
Closing with the same effect as though such representations and warranties had
been made on and as of the Closing.

        5.2 PERFORMANCE. All covenants, agreements and conditions contained in
this Agreement to be performed by Purchaser on or prior to the Closing shall
have been performed or complied with in all material respects.

        5.3 QUALIFICATIONS. All authorizations, approvals or permits, if any, of
any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the
Stock and the Warrant pursuant to this Agreement shall be obtained and effective
as of the Closing.

     6. MISCELLANEOUS.

        6.1 SURVIVAL OF WARRANTIES. Unless otherwise set forth in this
Agreement, the warranties and representations of the Company and Purchaser
contained in or made pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the Closing for a period of two (2) years
following the Closing, except for the warranties and representations in Section
2.8 which shall survive the execution and delivery of this Agreement and the
Closing for a period of three (3) years following the Closing. The covenants set
forth in this Agreement shall survive until the consummation of an initial
public offering of Common Stock or the merger, acquisition or sale of
substantially all of the assets of the Company in which the stockholders of the
Company immediately prior to such event do not own a majority of the outstanding
shares of the surviving corporation.

                                    Page 14
<PAGE>

        6.2 TRANSFER; SUCCESSORS AND ASSIGNS. The terms and conditions of this
Agreement shall inure to the benefit of and be binding upon the respective
successors and assigns of the parties. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

        6.3 GOVERNING LAW. This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto 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.

        6.4 TITLES AND SUBTITLES. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

        6.5 NOTICES. Any notice required or permitted by this Agreement shall be
in writing and shall be deemed sufficient upon delivery, when delivered
personally or by overnight courier or sent by telegram or fax, or forty-eight
(48) hours after being deposited in the U.S. mail, as certified or registered
mail, with postage prepaid, addressed to the party to be notified at such
party's address as set forth on the signature page hereto, or as subsequently
modified by written notice.

        6.6 FINDER'S FEE. Except for a placement agent fees payable by the
Company to BancBoston Robertson Stephens Inc., each party represents that it
neither is nor will be obligated for any finder's fee or commission in
connection with Purchaser's investment hereunder. Purchaser agrees to indemnify
and to hold harmless the Company from any liability for any commission or
compensation in the nature of a finder's fee (and the costs and expenses of
defending against such liability or asserted liability) for which Purchaser or
any of its officers, employees, or representatives is responsible. The Company
agrees to indemnify and hold harmless each Purchaser from any liability for any
commission or compensation in the nature of a finder's fee (and the costs and
expenses of defending against such liability or asserted liability) for which
the Company or any of its officers, employees or representatives is responsible.

        6.7 FEES AND EXPENSES. Each party shall be responsible for any fees or
expenses, incurred by it with respect to this Agreement, the documents referred
to herein and the transactions contemplated hereby and thereby.

        6.8 ATTORNEY'S FEES'. If any action at law or in equity (including
arbitration) is necessary to enforce or interpret the terms of any of the
Agreements, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

                                    Page 15
<PAGE>
        6.9 AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended or
waived only with the written consent of the Company and the holders of at least
a majority of the Common Stock issued or issuable upon conversion of the Stock
and exercise of the Warrant. Any amendment or waiver effected in accordance with
this Section 6.9 shall be binding upon the Purchasers and each transferee of the
Stock (or the Common Stock issuable upon conversion thereof) and Warrant (of the
Common Stock issuable upon exercise thereof), each future holder of all such
securities, and the Company.

        6.10 SEVERABILITY. If one or more provisions of this Agreement are held
to be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.

        6.11 DELAYS OR OMISSIONS. No delay or omission to exercise any right,
power or remedy accruing to any party under this Agreement, upon any breach or
default of any other party under this Agreement, shall impair any such right,
power or remedy of such non-breaching or non-defaulting party nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter occurring; nor
shall any waiver of any single breach or default be deemed a waiver of any other
breach or default theretofore or thereafter occurring. Any waiver, permit,
consent or approval of any kind or character on the part of any party of any
breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing. All
remedies, either under this Agreement or by law or otherwise afforded to any
party, shall be cumulative and not alternative.

        6.12 ENTIRE AGREEMENT. This Agreement, and the documents referred to
herein constitute the entire agreement between the parties hereto pertaining to
the subject matter hereof, and any and all other written or oral agreements
relating to the subject matter hereof existing between the parties hereto are
expressly canceled.

        6.13 CONFIDENTIALITY. Each party hereto agrees that, except with the
prior written permission of the other parties hereto, it shall at all times keep
confidential and not divulge, or make accessible to anyone any confidential
information, knowledge or data concerning or relating to the business or
financial affairs of the other parties to which such party has been or shall
become privy by reason of this Agreement, discussions or negotiations relating
to this Agreement, the performance of its obligations hereunder or the ownership
of Securities purchased hereunder. The provisions of this Section 6.13 shall be
in addition to, and not in substitution for, the provisions of any separate
nondisclosure agreement executed by the parties hereto with respect to the
transactions contemplated hereby.

                                    Page 16
<PAGE>

        6.14 RELIANCE. Purchaser acknowledges that it is not relying upon any
person, firm or corporation, other than the Company and its officers and
directors, in making its investment or decision to invest in the Company.

        6.15 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

     The parties have executed this Agreement as of the date first written
above.

                              MOBILITY ELECTRONICS, INC.

                              By:  /s/ RICHARD W. WINTERICH
                                   ------------------------------------------
                                   Richard W. Winterich, Chief Financial Officer

                              Address:   15990 Greenway-Hayden
                                         Suite 500
                                         Scottsdale, Arizona 85260

                              SELIGMAN COMMUNICATIONS AND INFORMATION FUND, INC.

                              BY:        J. & W. SELIGMAN & CO. INCORPORATED,
                                         ITS INVESTMENT ADVISER

                                         By:      /s/ RICHARD R. SCHMALTZ
                                                  -------------------------
                                         Name:    Richard R. Schmaltz
                                                  -------------------------
                                         Title:   Managing Director
                                                  -------------------------

                              Address:   125 University Ave.
                                         Palo Alto, CA  94301
                                         (650) 470-2670

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