Document:

REGISTRATION RIGHTS AGREEMENT

          THIS  REGISTRATION  RIGHTS  AGREEMENT,  dated  as of May 18, 2001 (the
"Agreement"), is made between THE FEMALE HEALTH COMPANY, a Wisconsin corporation
(the  "Company"),  and  HEARTLAND  BANK,  a federal savings bank (the "Holder").

                                    RECITALS

          A.     The  Company and the Holder have entered into a Loan Agreement,
dated  as  of the date of this Agreement (the "Loan Agreement"), which provides,
among  other  things,  for  a  $2,000,000  loan  from the Holder to the Company.

          B.     The  Company  has  agreed to issue a warrant (the "Warrant") to
the  Holder  to  purchase  a number of shares of the Company's Common Stock, par
value $0.01 per share (the "Common Stock") equal to (a) $500,000 (the "Guarantee
Amount"), divided by (b) the Warrant purchase price (as determined in accordance
with  the  provisions  set  forth  in the Warrant) as of the date of exercise to
induce  the Holder to execute and deliver the Loan Agreement.  The shares of the
Common  Stock  for which the Warrant is exercisable are collectively referred to
herein  as  the  "Common  Shares."

          C.     The  Company  wishes  to  execute and deliver this Agreement in
order  to induce the Holder to provide the loan under the Loan Agreement and has
agreed  to provide certain registration rights under the Securities Act of 1933,
as  amended,  and the rules and regulations thereunder, or any similar successor
statute  (collectively,  the  "1933  Act"), and applicable state securities laws
with  respect  to  the  Common  Shares.

                                   AGREEMENTS

          In  consideration  of  the premises and the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which  are  hereby  acknowledged,  and intending to be legally bound hereby, the
Company  and  the  Holder  hereby  agree  as  follows:

          1.     Definitions.  As  used  in  this Agreement, the following terms
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shall  have  the  following  meanings:

               (a)     "1934  Act"  shall  mean  the  Securities Exchange Act of
1934,  as  amended,  and  the  rules  and  regulations  promulgated  thereunder.

               (b)     "Guarantors"  shall  mean  any  guarantor  who executes a
guarantee at any time in connection with that certain Loan Agreement dated as of
May  __,  2001  between  the  initial  Holder  and  the  Company,  including any
amendments  thereto.

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               (c)     "Guarantor  Warrants" shall mean the Guarantors' warrants
for  the  purchase  of  shares  in  the  Company which are subject to the Pledge
Agreements  (as  defined  below).

               (d)     "Holder"  shall  have  the meaning set forth in the first
paragraph  hereof,  as  well as any transferee or assignee of the initial Holder
who  agrees  to  become  bound by the provisions of this Agreement in accordance
with  section  10  hereof.

               (e)     "Pledge  Agreements"  shall  mean  any  pledge agreements
entered into at any time by and between the initial Holder and each Guarantor in
connection with that certain Loan Agreement dated as of May __, 2001 between the
Holder and the Company, including any amendments thereto, whereby each Guarantor
pledges,  to  the  initial  Holder,  its  interest  in  certain warrants for the
purchase of stock in the Company, and the corresponding shares of stock issuable
upon  exercise  of  the  warrant..

               (f)     "Registrable Securities" means the Warrant and the Common
Shares,  together  with  any  shares  of  Common  Stock which may be issued as a
dividend  or  other distribution and any additional shares of Common Stock which
may  be  issued due to anti-dilution adjustments with respect to the Warrant and
Common  Shares,  which  are  required to be included in a Registration Statement
pursuant  to  section  2  below.  Upon the occurrence of an Event of Default (as
defined  in  the  Pledge Agreements), the term "Registrable Securities" may also
include,  at  the election of the initial Holder, the Guarantor Warrants and the
corresponding  shares  of  Common  Stock in the event the Guarantor Warrants are
exercised,  together  with  any  shares of Common Stock which may be issued as a
dividend  or  other distribution and any additional shares of Common Stock which
may  be  issued  due  to anti-dilution adjustments with respect to the Guarantor
Warrants  and  shares  of  Common  Stock  underlying  the  Guarantor  Warrants.

               (g)     "Registration  Period"  means the period between the date
of  this  Agreement  and  the  earlier  of  (i)  the  date  on  which all of the
Registrable  Securities  have  been sold pursuant to a Registration Statement or
Rule  144,  or  (ii)  the  date  on  which  the  Registrable  Securities, may be
immediately sold without registration by a Holder who is not an affiliate of the
Company  pursuant  to Rule 144(k) under the 1933 Act or any similar or successor
rule  (provided that the Holder has received an opinion of the Company's counsel
who  is  reasonably acceptable to the Holder covering the matters referred to in
this  clause  (ii)  and  such opinion is reasonably satisfactory to the Holder).
Notwithstanding  the  foregoing,  if  the  Registration  Period  for one type of
Registrable  Security  shall expire, the Registration Period for all other types
of  Registrable  Securities  shall  remain unchanged until such time as they are
sold  in  accordance  with  clause  (i)  above or may be sold in accordance with
clause  (ii)  above.

               (h)     "Registration  Statement"  means a registration statement
filed  with  the  Securities  and Exchange Commission (the "SEC") under the 1933
Act.

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               (i)     The  terms  "register,"  "registered," and "registration"
refer  to  a  registration  effected  by  preparing  and  filing  a Registration
Statement  in  compliance  with the 1933 Act, and the declaration or ordering of
effectiveness  of  such  Registration  Statement  by  the  SEC.

               (j)     "Rule 144" shall mean Rule 144 promulgated under the 1933
Act  or  any  successor  rule  thereto.

          2.     Registration.  The  Company  covenants  and  agrees:
                 ------------

               (a)     At  any time and from time to time, the Holder may make a
written request to the Company (a "Demand Notice") that the Company register the
offer  and  sale of all or any part of the Holder's Registrable Securities under
the  1933  Act  (a "Demand Registration").  Upon receipt of a Demand Notice, the
Company  will  use  its reasonable best efforts to file within 60 days after the
date  of the Demand Notice a Registration Statement with the SEC registering the
Registrable  Securities  included  in the Demand Notice for resale.  The Company
will  use its reasonable best efforts to cause such Registration Statement to be
declared  effective  by  the  SEC  within  120 days after the date of the Demand
Notice.  Such  reasonable  best  efforts  shall  include, but not be limited to,
promptly  responding to all comments received from the staff of the SEC.  Should
the  Company  receive  notification from the SEC that the Registration Statement
will  receive  no action or no review from the SEC, the Company shall cause such
Registration Statement to become effective within five business days of such SEC
notification.  Once  declared  effective  by  the SEC, the Company shall use all
reasonable  best  efforts  to  cause  such  Registration  Statement  to  remain
continuously  effective  throughout  the  Registration  Period.  Notwithstanding
anything  in  this section 2(a) to the contrary, the Holder shall be entitled to
no  more  than  two  Demand  Registrations.

               (b)     The  offering  of such Registrable Securities pursuant to
the  Registration  Statement  shall  be  in  the  form of either an underwritten
offering  or through the use of brokers or in privately negotiated transactions,
in  either  case as selected by the Holder within no more than five (5) business
days  following  the  date  of  the Demand Notice.  In the event that the Holder
elects that the offering be an underwritten offering, the Company and the Holder
shall  enter  into  a  customary underwriting agreement with such underwriter(s)
(and  the  Holder may at its option require that the representations, warranties
and  covenants  of  the Company to or for the benefit of the underwriter(s) also
are  made  for  the  benefit  of  the  Holder).

               (c)     Notwithstanding  the  foregoing, the Company may delay in
filing  the  Registration  Statement  and  may  withhold  efforts  to  cause the
Registration  Statement  to  become effective, if the Company determines in good
faith that such registration will (i) materially and adversely interfere with or
affect  the  negotiation  or  completion  of  any  actual  or  pending  material
transaction  that  is  being contemplated by the Company (whether or not a final
decision  has  been made to undertake such transaction) at the time the right to
delay  or  withhold  efforts is exercised, or (ii) involve initial or continuing
disclosure  obligations  that  are  not  in  the best interests of the Company's
stockholders.  The  Company may exercise such right to delay or withhold efforts
not  more  than  once  and  for  not more than sixty (60) days.  Notwithstanding

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anything to the contrary that may be contained in this Agreement, if the Company
exercises  its  right to delay or to withhold efforts, the Company shall use its
reasonable  best  efforts  to  have the Registration Statement filed or declared
effective,  as  the  case  may  be,  at  the earliest practicable date after the
Company's  reasons  for delaying or withholding efforts are no longer applicable
(but  subject  to  the  time  limitation in the immediately preceding sentence).

               (d)     Whenever  the  Company proposes to register (including on
behalf  of  a  selling  stockholder)  any  of  its securities under the 1933 Act
(except for the registration of securities to be offered pursuant to an employee
benefit  plan on Form S-8 or pursuant to a registration made on Form S-4, or any
successor  forms)  at  any time other than pursuant to a Demand Registration and
the  registration  form  to  be  used  may  be  used for the registration of the
Registrable  Securities  (a  "Piggyback  Registration"),  it  will so notify the
Holder in writing no later than the earlier to occur of (i) the tenth (10th) day
following  the  Company's  receipt  of  notice  of  exercise  of  other  demand
registration  rights,  or  (ii) 30 days prior to the anticipated date of filing.
Subject  to  the  provisions  of  section  2(f), the Company will include in the
Piggyback  Registration  all  Registrable  Securities  with respect to which the
Company has received written requests for inclusion from the Holder with fifteen
(15)  business  days  after  the  Holder's receipt of the Company's notice.  The
Holder  may  withdraw  all  or  any  part  of  the Registrable Securities from a
Piggyback  Registration  at  any time before ten (10) business days prior to the
effective  date  of the Piggyback Registration.  The Company, the Holder and any
person  who  hereafter  becomes  entitled  to  register  its  securities  in  a
registration  initiated  by  the Company shall sell their securities on the same
terms  and  conditions.

               (e)     If the managing underwriter gives the Company its written
opinion  that  the  total  number  of securities requested to be included in the
Piggyback  Registration  exceeds  the number of securities that can be sold, the
Company  will  include the securities in the registration in the following order
of  priority:  (i) first, all securities the Company or the shareholder for whom
the Company is effecting the registration, as the case may be, proposes to sell;
(ii)  second,  up  to  the full number of Registrable Securities requested to be
included in the registration; and (iii) third, any other securities requested to
be  included, allocated among the holders of such securities in such proportions
as  the  Company  and  those  holders  may  agree.

               (f)     If  any  Piggyback  Registration  is  an  underwritten
offering,  the  Company and the Holder shall enter into a customary underwriting
agreement  with  the  underwriter(s) administering the offering.  The Holder may
not  participate  in  any  Piggyback  Registration  without (i) agreeing to sell
securities  on  the  basis provided in the underwriting arrangements approved by
the  Company,  and  (ii)  completing  all  questionnaires,  powers  of attorney,
indemnities,  underwriting  agreements  and  other  documents  required  by  the
underwriting  arrangements.

               (g)     Upon the occurrence of an Event of Default (as defined in
the  Pledge Agreements) and the transfer of the Guarantor Warrants thereunder to
the  initial  Holder  pursuant to the terms of the Pledge Agreements and by law,
the  Company  hereby  agrees,  at  the  election  of  the  initial Holder, to be
exercised  by  notice  in  writing to the Company within sixty (60) days of such
transfer,  the  terms  and  conditions  of  this  Agreement shall also cover the

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<PAGE>
Guarantor Warrants and the corresponding shares of Common Stock in the event the
Guarantor Warrants are exercised, together with any shares of Common Stock which
may  be  issued as a dividend or other distribution and any additional shares of
Common  Stock  which may be issued due to anti-dilution adjustments with respect
to  the  Guarantor  Warrants and shares of Common Stock underlying the Guarantor
Warrants.

          3.     Additional  Obligations of the Company.  In connection with the
                 --------------------------------------
registration of the Registrable Securities, the Company shall have the following
additional  obligations:

               (a)     The  Company  shall  keep  the  Registration  Statement
effective  pursuant  to  Rule  415  under  the  1933 Act at all times during the
Registration  Period  as  defined  in  section  1(g)  above.

               (b)     The  Registration  Statement (including any amendments or
supplements  thereto  and  prospectuses  contained therein) filed by the Company
shall  not  contain  any  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,  in light of the circumstances in which they were made, not misleading.
The  Company  shall  prepare  and  file  with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus  used  in  connection  with  the  Registration  Statement  as  may be
necessary  to  keep the Registration Statement effective at all times during the
Registration  Period,  and, during such period, shall comply with the provisions
of the 1933 Act applicable to the Company with respect to the disposition of all
Registrable  Securities  of  the  Company  covered by the Registration Statement
until  such  time as all of such Registrable Securities have been disposed of in
accordance  with  the  intended methods of disposition by the sellers thereof as
set  forth  in the Registration Statement.  In the event the number of shares of
Common  Stock  included  in  a  Registration  Statement  filed  pursuant to this
Agreement  is  insufficient  to  cover  all  of  the Registrable Securities, the
Company  shall  amend  the Registration Statement and/or file a new Registration
Statement  so  as  to  cover  all  of  the  Registrable  Securities  as  soon as
practicable.  The  Company  shall  use its reasonable best efforts to cause such
amendment  and/or  new  Registration  Statement  to  become effective as soon as
practicable  following  the  filing  thereof.

               (c)     The  Company  shall  furnish  to  each  Holder  whose
Registrable  Securities  are included in the Registration Statement (i) promptly
after  the  same  is  prepared  and  publicly distributed, filed with the SEC or
received  by  the  Company,  one  copy  of  the  Registration  Statement and any
amendment  thereto,  each  preliminary  prospectus and final prospectus and each
amendment  or  supplement  thereto, and each substantive letter written by or on
behalf  of  the  Company  to  the  SEC  and  each  item  of  each  substantive
correspondence  from  the  SEC,  in  each  case  relating  to  such Registration
Statement (other than any portion of any item thereof which contains information
for  which  the Company has sought confidential treatment); and (ii) such number
of  copies  of  a  prospectus,  including  a  preliminary  prospectus,  and  all
amendments  and supplements thereto, and such other documents as such Holder may
reasonably  request  in  order  to facilitate the disposition of the Registrable
Securities  owned  by  such  Holder.

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               (d)     The  Company shall use its reasonable best efforts to (i)
register  and  qualify  the  Registrable  Securities covered by the Registration
Statement  under such other securities or blue sky laws of such jurisdictions as
the  Holder  reasonably  requests,  (ii) prepare and file in those jurisdictions
such  amendments  (including  post-effective amendments) and supplements to such
registrations  as  may be necessary to maintain the effectiveness thereof during
the  Registration  Period,  (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration  Period,  and  (iv)  take all other actions reasonably necessary or
advisable  to qualify the Registrable Securities for sale in such jurisdictions.
Notwithstanding  the  foregoing  provision, the Company shall not be required in
connection  therewith or as a condition thereto to (i) qualify to do business in
any  jurisdiction  where  it  would not otherwise be required to qualify but for
this  section  3(d),  (ii)  subject  itself  to  general  taxation  in  any such
jurisdiction,  (iii)  file  a  general consent to service of process in any such
jurisdiction, (iv) provide any undertakings that cause more than nominal expense
or burden to the Company, or (v) make any change in its charter or bylaws, which
in  each case the Board of Directors of the Company determines to be contrary to
the  best  interests  of  the  Company  and  its  stockholders.

               (e)     The  Company  shall  notify  each  Holder  who  holds
Registrable  Securities  being  sold pursuant to a Registration Statement of the
happening  of  any event of which the Company has knowledge as a result of which
the prospectus included in the 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  (a "Suspension Event").  The Company shall make such notification as
promptly  as  practicable  after  the  Company  becomes aware of such Suspension
Event, shall promptly use its reasonable best efforts to prepare a supplement or
amendment  to  the  Registration  Statement  to correct such untrue statement or
omission,  and  shall  deliver  a  copy  of such supplement or amendment to each
Holder.

               (f)     The  Company  shall  use  its  reasonable best efforts to
prevent the issuance of any stop order or other suspension of effectiveness of a
Registration Statement and, if such an order is issued, shall use its reasonable
best  efforts  to  obtain  the withdrawal of such order at the earliest possible
time  and  to  notify each Holder who holds Registrable Securities being sold of
the  issuance  of  such  order  and  the  resolution  thereof.

               (g)     The  Company  shall  permit  a  single  firm  of  counsel
designated by the Holder to review the Registration Statement and all amendments
and  supplements  thereto  (as  well  as  all  requests  for  acceleration  or
effectiveness  thereof)  a  reasonable period of time prior to their filing with
the  SEC,  and  shall  not  file  any  document  in a form to which such counsel
reasonably  objects.

               (h)     The  Company  shall  make available for inspection by the
Holder whose Registrable Securities are being sold pursuant to such registration
and  any  attorney,  accountant  or  other  agent  retained  by  any such Holder
(collectively,  the  "Inspectors"),  all  pertinent financial and other records,
pertinent  corporate  documents and properties of the Company (collectively, the
"Records"),  as  shall  be  reasonably  necessary  to  enable  each  Inspector

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to  exercise its due diligence responsibility, and cause the Company's officers,
directors  and  employees  to  supply  all  information  which any Inspector may
reasonably  request  for purposes of such due diligence; provided, however, that
each  Inspector  shall  hold  in  confidence  and  shall not make any disclosure
(except  to  a  Holder)  of  any  Record  or  other  information  unless (i) the
disclosure  of  such  Records is necessary to avoid or correct a misstatement or
omission  in  any  Registration  Statement,  (ii) the release of such Records is
ordered pursuant to a subpoena or other order from a court or government body of
competent  jurisdiction,  or (iii) the information in such Records has been made
generally  available to the public other than by disclosure in violation of this
or  any  other  agreement.  The  Company  shall  not be required to disclose any
confidential  information in such Records to any Inspector until and unless such
Inspector  shall  have  entered  into  confidentiality  agreements  (in form and
substance  reasonably satisfactory to the Company) with the Company with respect
thereto, substantially in the form of this section 3(h).  The Holder agrees that
it  shall,  upon  learning  that disclosure of such Records is sought in or by a
court  or  governmental  body  of competent jurisdiction or through other means,
give  prompt  notice  to  the  Company  and  allow the Company, at the Company's
expense,  to undertake appropriate action to prevent disclosure of, or to obtain
a  protective  order for, the Records deemed confidential.  Nothing herein shall
be  deemed  to  limit  the  Holder's ability to sell Registrable Securities in a
manner  which  is  otherwise  consistent  with  applicable laws and regulations.

               (i)     The  Company  shall  cooperate  with  the  Holder  of
Registrable  Securities and each underwriter participating in the disposition of
such  Registrable Securities, if any, and their respective counsel in connection
with any filings required to be made with the National Association of Securities
Dealers,  Inc.

               (j)     In  the  event  of  a  underwritten offering, the Company
shall enter into and perform its obligations under an underwriting agreement, in
usual  and  customary  form, with the underwriter(s) of such offering, with such
terms  and  conditions  as  the  Company  and the underwriter(s) may agree.  The
Holder, if participating in such underwriting, shall also enter into and perform
its  obligations  under  such  an  agreement.

               (k)     The  Company  shall  take  all  other  reasonable actions
reasonably  requested  by  the  Holder  which  are  necessary  to  expedite  and
facilitate  disposition  by the Holder of the Registrable Securities pursuant to
the  Registration  Statement.

          4.     Obligations of the Holder.  In connection with the registration
                 -------------------------
of  the Registrable Securities, the Holder shall have the following obligations:

               (a)     It  shall  be a condition precedent to the obligations of
the  Company  to  take any action pursuant to this Agreement with respect to the
Holder  that the Holder shall furnish in writing to the Company such information
regarding  the  Holder,  the  Registrable  Securities held by the Holder and the
intended  method of disposition of the Registrable Securities held by the Holder
as  shall  be  required to effect the registration of the Registrable Securities
and  shall  execute  such  documents in connection with such registration as the
Company  may  reasonably  request.

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               (b)     The  Holder, by acceptance of the Registrable Securities,
agrees  to  cooperate with the Company as reasonably requested by the Company in
connection  with  the  preparation  and  filing  of  the  Registration Statement
hereunder  unless  such  Holder  has  notified  the  Company  in writing of such
Holder's  election  to  exclude all of such Holder's Registrable Securities from
the  Registration  Statement.

               (c)     The  Holder  agrees that, upon receipt of any notice from
the  Company of the happening of any event of the kind described in section 3(e)
or  3(f),  such  Holder  will immediately discontinue disposition of Registrable
Securities  pursuant  to  the  Registration  Statement covering such Registrable
Securities  until  such  Holder's  receipt  of the copies of the supplemented or
amended  prospectus contemplated by section 3(e) or 3(f)  and, if so directed by
the  Company,  such  Holder  shall deliver to the Company (at the expense of the
Company)  or  destroy (and deliver to the Company a certificate of destruction )
all  copies  in  such  Holder's  possession,  of  the  prospectus  covering such
Registrable  Securities  current  at  the  time  of receipt of such notice.  The
Company  shall  use  its  reasonable  best  efforts to limit the duration of any
discontinuance  of  disposition  of  Registrable  Securities  pursuant  to  this
paragraph.

          5.     Expenses  of  Registration.  All expenses, other than discounts
                 --------------------------
and commissions attributable to the sale of any Registrable Securities, incurred
in  connection with registrations, filings or qualifications pursuant to section
2,  including,  without limitation, all registration, listing and qualifications
fees,  printers  and  accounting fees, and the fees and disbursements of counsel
for  the  Company,  shall  be  borne  by  the  Company.

          6.     Indemnification.  In  the  event any Registrable Securities are
                 ---------------
included  in  a  Registration  Statement  under  this  Agreement:

               (a)     The  Company will indemnify and hold harmless each Holder
who  holds  such  Registrable Securities, the directors, if any, of such Holder,
the  officers  and  employees,  if any, of such Holder, each person, if any, who
controls  any  Holder  within the meaning of the 1933 Act (each, an "Indemnified
Person"), against any losses, claims, damages, expenses or liabilities (joint or
several)  or  actions in respect thereof (collectively "Claims") to which any of
them  become subject under the 1933 Act or otherwise, insofar as such Claims (or
actions  or  proceedings,  whether  commenced or threatened, in respect thereof)
arise  out  of  or  are based upon any of the following statements, omissions or
violations  in  the  Registration  Statement,  or  any  post-effective amendment
thereof,  or  any  prospectus  included  therein:  (i)  any  untrue statement or
alleged  untrue  statement  of  a  material  fact  contained in the Registration
Statement  or  any  post-effective  amendment thereof or 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,  (ii) any untrue
statement  or  alleged  untrue  statement  of  a  material fact contained in any
preliminary  prospectus if used prior to the effective date of such Registration
Statement,  or contained in the final prospectus (as amended or supplemented, if
the  Company  files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make  the statements made therein, in light of the circumstances under which the
statements  therein were made, not misleading, or (iii) any violation or alleged
violation  by  the  Company  of  the 1933 Act or any state securities law or any

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rule  or  regulation  (the  matters  in  the foregoing clauses (i) through (iii)
being,  collectively,  "Violations").  Subject  to the restrictions set forth in
section  6(c)  with  respect  to  the number of legal counsel, the Company shall
reimburse  the  Holder and each such underwriter or controlling person, promptly
as  such  expenses  are  incurred and are due and payable, for any legal fees or
other  expenses  reasonably incurred by them in connection with investigating or
defending  any  such  Claim.  Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this section 6(a):  (A) shall
not  apply  to  a Claim arising out of or based upon a Violation which occurs in
reliance  upon  and  in  conformity with information furnished in writing to the
Company  by  any  Indemnified  Person or underwriter for such Indemnified Person
expressly  for  use  in  connection  with  the  preparation  of the Registration
Statement  or any such amendment thereof or supplement thereto; (B) with respect
to  any preliminary prospectus shall not inure to the benefit of any such person
from  whom  the  person  asserting  any  such  Claim  purchased  the Registrable
Securities  that  are  the  subject  thereof  (or  to  the benefit of any person
controlling  such  person)  if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected in the prospectus, as then
amended  or  supplemented,  if  a  prospectus  was  timely made available by the
Company pursuant to section 3(c) hereof; and (C) shall not apply to amounts paid
in  settlement  of  any  Claim  if such settlement is effected without the prior
written  consent  of  the  Company,  which  consent  shall  not  be unreasonably
withheld.  Such  indemnity  shall  remain in full force and effect regardless of
any  investigation  made  by  or  on behalf of the Indemnified Persons and shall
survive  the  transfer  of  the Registrable Securities by the Holder pursuant to
section 10.  In connection with a firm or best efforts underwritten offering, to
the  extent  customarily  required by the managing underwriter, the Company will
indemnify  the  underwriters,  their  officers,  directors,  trustees, partners,
employees,  advisors  and  agents, and each person who controls the underwriters
(within  the  meaning  of  Section  15 of the 1933 Act or Section 20 of the 1934
Act),  together  with  all  officers,  directors, trustees, partners, employees,
advisors  and agents of such controlling person, to the extent customary in such
agreements.

               (b)     In  connection  with  any Registration Statement in which
the  Holder  is participating, the Holder agrees to indemnify and hold harmless,
to  the  same  extent  and  in  the  same  manner set forth in section 6(a), the
Company,  each of its directors, each of its officers who signs the Registration
Statement,  each  person, if any, who controls the Company within the meaning of
the  1933  Act  (an "Indemnified Party"), against any Claim to which any of them
may  become  subject,  under  the  1933  Act or otherwise, insofar as such Claim
arises  out  of  or is 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  to the Company by such Holder
expressly  for  use  in  connection  with  such Registration Statement, and such
Holder  will  reimburse  any legal fees or other expenses reasonably incurred by
them  in  connection  with  investigating or defending any such Claim; provided,
however,  that  the indemnity agreement contained in this section 6(b) shall not
apply  to amounts paid in settlement of any Claim if such settlement is effected
without  the  prior  written  consent of such Holder, which consent shall not be
unreasonably  withheld;  provided  further,  however,  that  the Holder shall be
liable  under  this  section  6(b)  for  only that amount of a Claim as does not
exceed  the  net  proceeds to such Holder as a result of the sale of Registrable
Securities pursuant to such Registration Statement.  Such indemnity shall remain
in  full  force  and  effect  regardless  of  any  investigation  made  by or on

                                        9
<PAGE>
behalf  of  such  Indemnified  Party  and  shall  survive  the  transfer  of the
Registrable Securities by the Holder pursuant to section 10.  In connection with
a firm or best efforts underwritten offering, to the extent customarily required
by  the  managing underwriter, the Holder will indemnify the underwriters, their
officers,  directors,  trustees,  partners,  employees, advisors and agents, and
each  person  who controls the underwriters (within the meaning of Section 15 of
the  1933  Act  or  Section  20  of  the  1934 Act), together with all officers,
directors,  trustees,  partners,  employees,  advisors  and  agents  of  such
controlling  person,  to  the  extent  customary  in  such  agreements.

               (c)     Promptly  after  receipt  by  an  Indemnified  Person  or
Indemnified  Party  under  this  section  6 of notice of the commencement of any
action  (including  any  governmental  action),  such  Indemnified  Person  or
Indemnified Party shall, if a Claim in respect thereof is to be made against any
indemnifying  party  under  this  section 6, deliver to the indemnifying party a
written  notice  of  the  commencement thereof and this indemnifying party shall
have  the  right to participate in, and, to the extent the indemnifying party so
desires,  jointly with any other indemnifying party similarly noticed, to assume
control  of  the  defense  thereof  with  counsel  mutually  satisfactory to the
indemnifying  parties;  provided,  however,  that  an  Indemnified  Person  or
Indemnified  Party shall have the right to retain its own counsel, with the fees
and expenses to be paid by the indemnifying party, if, in the reasonable opinion
of  counsel  retained  by  the  indemnifying  party,  the representation by such
counsel  of  the  Indemnified  Person  or Indemnified Party and the indemnifying
party  would  be  inappropriate  due  to actual or potential differing interests
between such Indemnified Person or Indemnified Party and other party represented
by such counsel in such proceeding.  The Company shall pay for only one separate
legal  counsel  for  the  Holder;  such  legal  counsel shall be selected by the
Holder.  The  failure to deliver written notice to the indemnifying party within
a  reasonable time of the commencement of any such action shall not relieve such
indemnifying  party  of  any  liability to the Indemnified Person or Indemnified
Party  under this section 6, except to the extent that the indemnifying party is
prejudiced  in  its ability to defend such action.  The indemnification required
by  this  section  6  shall  be  made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense, loss, damage
or  liability  is  incurred  and  is  due  and  payable.

          7.     Contribution.  If  for  any reason the indemnification provided
                 ------------
for in section 6 is unavailable to an Indemnified Party or an Indemnified Person
or is insufficient to hold it harmless as payable by the Indemnified Party or an
Indemnified  Person  as  contemplated  therein, the indemnifying party agrees to
make  the  maximum  contribution  with respect to any amounts for which it would
otherwise be liable under section 6, provided, however, that (i) no contribution
shall be made under circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in section 6, (ii) no seller
of  Registrable  Securities  guilty  of fraudulent misrepresentation (within the
meaning of section 11(f) of the 1933 Act) shall be entitled to contribution from
any  seller  of  Registrable  Securities  who  was not guilty of such fraudulent
misrepresentation,  and  (iii)  contribution  by  any  seller  of  Registrable
Securities  shall be limited in amount to the net amount of proceeds received by
such  seller  from  the  sale  of  such  Registrable  Securities.

                                       10
<PAGE>
          8.     Changes  in  Capital  Stock.  If, and as often as, there is any
                 ---------------------------
change  in  the  capital  stock  of  the  Company by way of a stock split, stock
dividend,  combination  or reclassification, or through a merger, consolidation,
reorganization  or  recapitalization,  or  by  any  other  means,  appropriate
adjustment  shall  be  made  in  the  provisions  hereof  so that the rights and
privileges granted hereby shall continue with respect to the capital stock as so
changed.

          9.     Rule  144  Reporting.  With  a  view to making available to the
                 --------------------
Holder the benefits of Rule 144 and any other rule or regulation of the SEC that
may  at any time permit a Holder to sell securities of the Company to the public
without  registration,  the  Company  agrees  to:

               (a)     Make  and  keep  public  information  available, as those
terms  are  understood  and  defined  in  Rule  144, at all times after the date
hereof;

               (b)     File  with  the  SEC  in  a timely manner all reports and
other documents required of the Company under the 1933 Act and the 1934 Act; and

               (c)     Furnish  to  any  Holder,  so long as the Holder owns any
Registrable  Securities,  upon request (i) a written statement by the Company as
to  its  compliance with the reporting requirements of the 1933 Act and the 1934
Act (at any time after it has become subject to such reporting requirements), or
as  to its qualification as a registrant whose securities may be resold pursuant
to  Form S-3 or any registration form under the 1933 Act subsequently adopted by
the  SEC  that permits the inclusion or incorporation of substantial information
by  reference  to other documents filed by the Company with the SEC (at any time
after  it  so  qualifies),  (ii)  a  copy of the most recent annual or quarterly
report  of  the  Company  and  such  other reports and documents so filed by the
Company,  and  (iii)  such  other  information as may be reasonably requested in
availing  any  Holder  of  any  rule  or regulation of the SEC which permits the
selling  of  any  such securities without registration or pursuant to such form.

          10.     Assignment  of  Registration  Rights.  The  rights to have the
                  ------------------------------------
Company  register  Registrable  Securities  pursuant  to this Agreement shall be
automatically  assigned  by the Holder to transferees or assignees of all or any
portion  of such Registrable Securities if (i) the Holder agrees in writing with
the  transferee  or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment, (ii)
the  Company  is,  within  a  reasonable time after such transfer or assignment,
furnished  with  written  notice  of  the name and address of such transferee or
assignee  and  the securities with respect to which such registration rights are
being  transferred  or assigned, (iii) following such transfer or assignment the
further  disposition  of  such  securities  by  the  transferee  or  assignee is
restricted  under the 1933 Act and applicable state securities laws, and (iv) at
or  before  the  time  the  Company  received the written notice contemplated by
clause  (ii) of this sentence, the transferee or assignee agrees in writing with
the  Company  to  be  bound  by  all of the provisions contained herein.  Upon a
transfer  in  compliance with this section 10 , all references in this Agreement
to  "Holder"  shall  be  deemed to refer in addition to any transferee hereunder
with  respect  to  such  transferred  Registrable  Securities.  Notwithstanding
anything  to  the contrary that may be contained in this Agreement, in the event
that  the  Holder  does  not  transfer  all  of  the  Registrable

                                       11
<PAGE>
Securities  or transfers the Registrable Securities to more than one transferee,
the  holders  of the Registrable Securities thereafter shall be entitled to take
any action hereunder by the approval of not less than thirty-three percent (33%)
of  all  Registrable Securities or by the approval of not less than thirty-three
percent  (33%)  of  the  Registrable  Securities  which  are the subject of such
registration,  as  appropriate.

          11.     Amendment  of  Registration  Rights.  Provisions  of  this
                  -----------------------------------
Agreement  may  be  amended  and  the  observance  thereof 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 Holder(s) who hold a
majority  interest  of  the  Registrable  Securities.  Any  amendment  or waiver
effected  in  accordance  with this section 11 shall be binding upon each Holder
and  the  Company.

          12.     Miscellaneous.
                  -------------

               (a)     Conflicting  Instructions.  A  person or entity is deemed
                       -------------------------
to  be a Holder of Registrable Securities whenever such person or entity owns of
record  such  Registrable  Securities.  If  the  Company  receives  conflicting
instructions,  notices  or  elections  from two or more persons or entities with
respect to the same Registrable Securities, the Company shall act upon the basis
of  instructions,  notice or election received from the registered owner of such
Registrable  Securities.

               (b)     Notices.  Any  notices  required or permitted to be given
                       -------
under  the terms of this Agreement shall be sent by certified or registered mail
(with return receipt requested) or delivered personally or by courier (including
a  nationally  recognized  overnight  delivery  service)  or  by  facsimile
transmission.  Any  notice  so  given shall be deemed effective three days after
being  deposited in the U.S. Mail, or upon receipt if delivered personally or by
courier  or  facsimile  transmission,  in  each case addressed to a party at the
following  address  or  such  other  address as each such party furnishes to the
other  in  accordance  with  this  section  12(b):

If  to  the  Company:

     The  Female  Health  Company
          875  North  Michigan  Avenue
          Suite  3660
          Chicago,  IL  60611
          Telephone:  (312)  280-1119
          Facsimile:  (312)  280-9360
          Attention:  Mr.  O.B.  Parrish

                                       12
<PAGE>
with  a  copy  to:

     Reinhart,  Boerner,  Van  Deuren,
          Norris  &  Rieselbach,  s.c.
          1000  North  Water  Street
          Suite  2100
          Milwaukee,  WI  53202
          Telephone:  (414)  298-1000
          Facsimile:  (414)  298-8097
          Attention:  Mr.  James  M.  Bedore,  Esq.

If  to  the  Holder:

     Heartland  Bank
          212  S.  Central  Avenue
          St.  Louis,  Missouri  63105
          Telephone:  (314)  512-8500
          Facsimile:  (314)  512-8501
          Attention:  David  Puricelli  and  Andrew  S.  Love

with  a  copy  to:

     Bryan  Cave  LLP
          One  Metropolitan  Square
          Suite  3600
          St.  Louis,  MO  63102
          Telephone:  (314)  259-2000
          Facsimile:  (314)  259-2020
          Attention:  Mr.  Mark  B.  Hillis,  Esq.

               (c)     Waiver.  Failure  of  any  party to exercise any right or
                       ------
remedy under this Agreement or otherwise, or delay by a party in exercising such
right  or  remedy,  shall  not  operate  as  a  waiver  thereof.

               (d)     Governing  Law.  This  Agreement  shall  be  enforced,
                       --------------
governed  by  and construed in accordance with the laws of the State of Missouri
applicable  to  the  agreements  made  and  to be performed entirely within such
state,  without  giving  effect  to  rules  governing  the  conflict  of  laws.

               (e)     Any  legal  action  or  proceeding  with  respect to this
Agreement  may  be brought in the courts of the State of Missouri located in St.
Louis  County  or  the City of St. Louis or of the United States for the Eastern
District  of  Missouri,  and,  by  execution and delivery of this Agreement, the
Company irrevocably accepts for itself and in respect of its property, generally
and unconditionally, the non-exclusive jurisdiction of the aforesaid courts. The
Company  hereby  waives  personal  service  of  any  and all process upon it and
consents  that  all

                                       13
<PAGE>
such  service  of  process  may  be  made  by  registered  mail  (return receipt
requested) directed to the Company at its address set forth in section 12(b) and
service  so  made  shall  be deemed to be completed five (5) days after the same
shall  have  been  deposited in the U.S. mails.  Nothing herein shall affect the
right  of the Holder to serve process in any other manner permitted by law or to
commence legal proceedings or otherwise proceed against the Company in any other
jurisdiction.

               (f)     The Company hereby irrevocably waives any objection which
it  may  now  or  hereafter  have to the laying of venue of any of the aforesaid
actions  or  proceedings  arising  out  of  or in connection with this Agreement
brought  in  the  courts  referred  to  in  clause  (e) above and hereby further
irrevocably  waives  and agrees not to plead or claim in any such court that any
such  action  or  proceeding  brought  in  any such court has been brought in an
inconvenient  forum.

               (g)     Severability.  In  the  event  that any provision of this
                       ------------
Agreement  is  invalid  or unenforceable under any applicable statute or rule of
law,  then  such provision shall be deemed inoperative to the extent that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule  of  law.  Any  provision  hereof  which may prove invalid or unenforceable
under  any  law  shall  not  affect  the validity or enforceability of any other
provision  hereof.

               (h)     Entire  Agreement.  This Agreement constitutes the entire
                       -----------------
agreement  among  the  parties hereto with respect to the subject matter hereof.
There  are  no  restrictions,  promises,  warranties or undertakings, other than
those set forth or referred to herein or therein.  This Agreement supersedes all
prior agreements and understandings among the parties hereto with respect to the
subject  matter  hereof.

               (i)     Successors  and  Assigns.  Subject to the requirements of
                       ------------------------
section  10  hereof, this Agreement shall inure to the benefit of and be binding
upon  the  successors  and  assigns  of  each  of  the  parties  hereto.

               (j)     Use of Pronouns.  All pronouns and any variations thereof
                       ---------------
refer  to  the masculine, feminine or neuter, singular or plural, as the context
may  require.

               (k)     Headings.  The  headings and subheadings in the Agreement
                       --------
are  for  convenience  of reference only and shall not limit or otherwise affect
the  meaning  hereof.

               (l)     Counterparts.  This  Agreement  may be executed in two or
                       ------------
more  counterparts,  each  of which shall be deemed an original but all of which
shall constitute one and the same agreement.  This Agreement, once executed by a
party, may be delivered to the other party hereto by facsimile transmission, and
facsimile  signatures  shall  be  binding  on  the  parties  hereto.

               (m)     Further  Acts.  Each party shall do and perform, or cause
                       -------------
to  be  done  and performed, all such further acts and things, and shall execute
and  deliver  all  such  other

                                       14
<PAGE>
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

               (n)     Consents.  All  consents  and  other determinations to be
                       --------
made by the Holder pursuant to this Agreement shall be made by Holder(s) holding
a  majority  of  the  Registrable Securities, determined as if all Warrants then
outstanding  had  been  converted  into  or  exercised  for  Common  Shares.

                       [Signatures on the following page]

                                       15
<PAGE>
     IN  WITNESS  WHEREOF,  the  parties  have  caused this Agreement to be duly
executed  as  of  the  date  first  above  written.

COMPANY:

THE  FEMALE  HEALTH  COMPANY

By:_____________________________________
   O.B.  Parrish,  Chairman  and  Chief
   Executive  Officer

HOLDER:

HEARTLAND  BANK

By:_____________________________________

                                       16RESTRICTION ON TRANSFER

THIS  WARRANT  AND  THE  SHARES  OF  COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT  HAVE  NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR  QUALIFIED  UNDER  ANY  STATE  SECURITIES  LAWS.  THIS  WARRANT  MAY  NOT  BE
TRANSFERRED,  AND  THE  SHARES  OF  COMMON  STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT  CANNOT  BE  SOLD  OR  TRANSFERRED,  WITHOUT  (I) THE OPINION OF COUNSEL
REASONABLY  SATISFACTORY  TO THE COMPANY THAT SUCH TRANSFER MAY BE LAWFULLY MADE
WITHOUT  REGISTRATION  UNDER  THE  SECURITIES  ACT  OF 1933, AS AMENDED, AND ALL
APPLICABLE  STATE  SECURITIES  LAWS  OR  (II)  SUCH  REGISTRATION.

                                     WARRANT

                  To Subscribe for and Purchase Common Stock of

                            THE FEMALE HEALTH COMPANY

     THIS  CERTIFIES THAT, for value received, Heartland Bank, a federal savings
bank,  or its registered assigns, is entitled to subscribe for and purchase from
The Female Health Company (herein called the "Company"), a corporation organized
and  existing  under  the laws of the State of Wisconsin, at the price specified
below (subject to adjustment as noted below) at any time from and after the date
hereof to and including May 18, 2006, the number of fully paid and nonassessable
(subject to Wisconsin law) shares of the Company's common stock, par value $0.01
per  share  ("Common  Stock")  equal  to  (a) $500,000 (the "Guarantee Amount"),
divided  by (b) the Warrant purchase price as of the date of exercise determined
in  accordance  with  the  next  paragraph.

     The  Warrant purchase price (subject to adjustment as noted below) shall be
a  price  per share equal to 70% of the "market price" of the Common Stock as of
the  day  immediately  prior  to  the  date  the exercise notice is given to the
Company,  but  in  no  event  shall such per share price be less than $0.50 (the
"Minimum  Price")  or  more  than  $1.00  (the  "Maximum  Price").

     For  purposes  of  determining  the "market price" of the Common Stock, the
price  shall  be  determined  as  the  average last sale price of a share of the
Company's  Common  Stock for the five trading days ending on the day immediately
prior to the date a notice of exercise is issued to the Company by the holder of
this  Warrant (the "Holder").  If at any time, the Common Stock is not quoted in
the  domestic  over-the-counter market, the "market price" shall be deemed to be
the  higher  of  (i)  the  book  value  thereof,  as  determined  by any firm of
independent  public  accountants of recognized standing selected by the Board of
Directors  of the Company, as at the last day of any month ending within 60 days
preceding the date as of which the determination is to be made, or (ii) the fair
value  thereof determined in good faith by the Board of Directors of the Company
as  of  a date which is within 15 days of the date as of which the determination
is  to  be  made.

<PAGE>
     This  Warrant is subject to the following provisions, terms and conditions:

     1.     The  rights  represented  by  this  Warrant  may be exercised by the
Holder  hereof,  in whole or in part, by written notice of exercise delivered to
the  Company 20 days prior to the intended date of exercise and by the surrender
of  this  Warrant (properly endorsed if required) at the principal office of the
Company  at  875  North Michigan Avenue, Suite 3660, Chicago, Illinois 60611 (or
such  other  location  as  the Company may designate by notice in writing to the
Holder  hereof)  and  upon payment to it by check of the purchase price for such
shares.  The  Company  shall  not  be  required  to issue fractions of shares of
Common  Stock  upon exercise of this Warrant.  If any fraction of a share would,
but  for this Section, be issuable upon any exercise of this Warrant, and if the
Company  shall  have  elected  not to issue such fraction of a share, in lieu of
such  fractional  share  the Company shall pay to the Holder, in cash, an amount
equal  to such fraction of the "market price" (as determined above) per share of
outstanding Common Stock of the Company on the Business Day immediately prior to
the  date  of  such  exercise.  The  Company agrees that the shares so purchased
shall be and are deemed to be issued to the Holder hereof as the record owner of
such  shares as of the close of business on the date on which this Warrant shall
have been surrendered and payment made for such shares as aforesaid.  Subject to
the  provisions of the next succeeding paragraph, certificates for the shares of
stock  so  purchased  (bearing an appropriate legend to indicate that the shares
have not been registered under securities laws) shall be delivered to the Holder
hereof  within  a  reasonable  time,  not  exceeding  10  days, after the rights
represented  by  this  Warrant  shall  have  been so exercised, and, unless this
Warrant  has  expired, a new Warrant reflecting the Guarantee Amount, if any, as
to which this Warrant shall not then have been exercised shall also be delivered
to  the  Holder  hereof  within  such  time.

     2.     Notwithstanding  the  foregoing,  however,  the Company shall not be
required  to  deliver  any certificate for shares of stock upon exercise of this
Warrant  except  in  accordance  with  the  provisions,  and  subject  to  the
limitations,  of paragraph 7 hereof and the restrictive legend under the heading
"Restriction  on  Transfer."

     3.     The  Company  covenants  and  agrees  that:

          (a)     all  shares that may be issued upon the exercise of the rights
represented  by this Warrant will, upon issuance, be duly authorized and issued,
fully  paid and nonassessable (except as set forth in Wisconsin Statutes Section
180.0622(2)(b)) and free from all preemptive rights of any stockholder, and from
all  taxes,  liens  and  charges  with  respect to the issue thereof (other than
transfer  taxes);

          (b)     during  the period within which the rights represented by this
Warrant  may  be  exercised,  the Company will at all times have authorized, and
reserved  for the purpose of issue or transfer upon exercise of the subscription
rights  evidenced  by  this Warrant, a sufficient number of shares of its Common
Stock  to  provide  for  the exercise of the rights represented by this Warrant;

                                        2
<PAGE>
          (c)     during  the period within which the rights represented by this
Warrant  may  be exercised, the Company further will use reasonable best efforts
to  maintain  the  eligibility of the Common Stock for quotation on the domestic
over-the-counter market and use reasonable best efforts to keep the Common Stock
so  quoted;  and

          (d)     during  the period within which the rights represented by this
Warrant  may  be  exercised, the Company's Articles of Incorporation and by-laws
shall not be amended or modified (other than an amendment or modification to the
Company's  Articles  of Incorporation to increase the number of shares of Common
Stock  authorized  thereunder or to designate a new class or series of preferred
stock)  if  such  amendment  or  modification  has  or  would  have, directly or
indirectly,  a  material  adverse effect on the Holder of this Warrant or Common
Stock  purchased  or  purchasable upon exercise of this Warrant or on the rights
and  remedies  hereunder.

     4.     (a)     If  the  Company  shall  after  the date of issuance of this
Warrant  subdivide  its outstanding shares of Common Stock into a greater number
of  shares  or consolidate its outstanding shares of Common Stock into a smaller
number  of shares (any such event being called a "Common Stock Reorganization"),
then  the  Minimum  Price and Maximum Price shall be adjusted, effective at such
time,  to  a number determined by multiplying the Minimum and Maximum Price by a
fraction,  the  numerator of which shall be the number of shares of Common Stock
outstanding  immediately  before  such  Common  Stock  Reorganization  and  the
denominator  of  which  shall  be  the number of shares outstanding after giving
effect  to  such  Common  Stock  Reorganization.

          (b)     (i)  If  the  Company shall after the date of issuance of this
Warrant  issue  or  otherwise  sell  or  distribute  any shares of Common Stock,
otherwise  than  pursuant  to  a  Common  Stock  Reorganization (any such event,
including  any  event described in paragraphs (ii) and (iii) below, being herein
called  a  "Common Stock Distribution"), if such Common Stock Distribution shall
be  for a consideration per share less than the Warrant purchase price in effect
immediately prior to the date of such Common Stock Distribution, or on the first
date  of the announcement of such Common Stock Distribution (whichever is less),
then,  effective  upon  such  Common  Stock  Distribution, the Minimum Price and
Maximum  Price  shall  be  adjusted by multiplying the Minimum Price and Maximum
Price  by a fraction, the numerator of which shall be an amount equal to the sum
of  (A)  the  number  of  shares  of Common Stock outstanding (and issuable upon
exercise  or  conversion  of  outstanding  options,  warrants  and  convertible
securities)  immediately  prior  to  the Common Stock Distribution, plus (B) the
number  of  shares  of  Common  Stock which the aggregate consideration, if any,
received  by  the  Company  (determined as provided below) for such Common Stock
Distribution  would  buy  at  the  last  sales  price  thereof,  as  of the date
immediately  prior  to  such  Common  Stock  Distribution  or  as  of  the  date
immediately  prior to the date of announcement of such Common Stock Distribution
(whichever  is  less)  and the denominator of which shall be the total number of
shares  of Common Stock outstanding (and issuable upon exercise or conversion of
outstanding  options,  warrants and convertible securities) immediately prior to
such  Common Stock Distribution plus the number of shares of Common Stock issued
(or  deemed  to  be  issued pursuant to paragraphs (ii) and (iii) below) in such
Common  Stock  Distribution.

                                        3
<PAGE>
          The  provisions  of  this  paragraph  (i),  including  by operation of
paragraph  (ii)  or (iii) below, shall not operate to increase the Minimum Price
and  Maximum  Price.

          (ii)     If  the  Company  shall  after  the  date of issuance of this
Warrant  issue,  sell,  distribute  or  otherwise  grant  in any manner (whether
directly  or by assumption in a merger or otherwise) any rights to subscribe for
or  to purchase, or any warrants or options for the purchase of, Common Stock or
any  stock or securities convertible into or exchangeable for Common Stock (such
rights,  warrants  or options being herein called "Options" and such convertible
or  exchangeable  stock  or  securities  being  herein  called  "Convertible
Securities"),  whether  or not such Options or the rights to convert or exchange
any  such  Convertible Securities are immediately exercisable, and the price per
share  for  which  Common Stock is issuable upon the exercise of such Options or
upon  conversion  or  exchange  of  such  Convertible  Securities (determined by
dividing (A) the aggregate amount, if any, received or receivable by the Company
as  consideration  for  the granting of such Options, plus the minimum aggregate
amount  of  additional consideration payable to the Company upon the exercise of
all  such  Options,  plus,  in  the  case  of  Options  to  acquire  Convertible
Securities,  the  minimum  aggregate amount of additional consideration, if any,
payable  upon  the  issue  or  sale  of such Convertible Securities and upon the
conversion  or  exchange  thereof,  by (B) the total maximum number of shares of
Common  Stock  issuable upon the exercise of such Options or upon the conversion
or  exchange  of  all  such Convertible Securities issuable upon the exercise of
such  Options)  shall be less than the last sales price per share of outstanding
Common  Stock of the Company on the date of granting such Options or on the date
of  announcement thereof (whichever is less), then for purposes of paragraph (i)
above,  the  total  maximum  number  of shares of Common Stock issuable upon the
exercise  of  such  Options  or upon conversion or exchange of the total maximum
amount of such Convertible Securities issuable upon the exercise of such Options
shall  be  deemed to have been issued as of the date of granting of such Options
and thereafter shall be deemed to be outstanding and the Company shall be deemed
to  have  received as consideration such price per share, determined as provided
above,  therefor.  Except  as  otherwise  provided  in  paragraph (iv) below, no
additional  adjustment of the Minimum Price and Maximum Price shall be made upon
the  actual  exercise  of  such  Options  or upon conversion or exchange of such
Convertible  Securities.

          (iii)     If  the  Company  shall  after  the date of issuance of this
Warrant  issue,  sell  or  otherwise distribute or grant (whether directly or by
assumption  in a merger or otherwise) any Convertible Securities, whether or not
the  rights  to  exchange or convert thereunder are immediately exercisable, and
the  price  per share for which Common Stock is issuable upon such conversion or
exchange (determined by dividing (A) the aggregate amount received or receivable
by  the  Company  as  consideration  for the issue, sale or distribution of such
Convertible  Securities,  plus,  the  minimum  aggregate  amount  of  additional
consideration,  if  any,  payable to the Company upon the conversion or exchange
thereof, by (B) the total maximum number of shares of Common Stock issuable upon
the  conversion  or  exchange  of all such Convertible Securities) shall be less
than  the  last sales price per share of outstanding Common Stock of the Company
on  the  date of such issue, sale or distribution or on the date of announcement
thereof  (whichever  is  less),  then,  for purposes of paragraph (i) above, the
total  maximum  number  of  shares  of  Common Stock issuable upon conversion or
exchange  of  all  such  Convertible

                                        4
<PAGE>
Securities shall be deemed to have been issued as of the date of the issue, sale
or distribution of such Convertible Securities and thereafter shall be deemed to
be outstanding and the Company shall be deemed to have received as consideration
such  price  per  share,  determined  as  provided  above,  therefor.  Except as
otherwise  provided  in  paragraph  (iv)  below, no additional adjustment of the
Minimum  Price  and  Maximum  Price  shall be made upon the actual conversion or
exchange  of  such  Convertible  Securities.

          (iv)     If  the purchase price provided for in any Option referred to
in  paragraph (ii) above, the additional consideration, if any, payable upon the
conversion  or  exchange  of any Convertible Securities referred to in paragraph
(ii) or (iii) above, or the rate at which any Convertible Securities referred to
in paragraph (ii) or (iii) above are convertible into or exchangeable for Common
Stock  shall  change  at  any  time (other than under or by reason of provisions
designed  to  protect  against,  and  having  the  effect of protecting against,
dilution  upon  an  event which results in a related adjustment pursuant to this
paragraph 4), the Minimum Price and Maximum Price then in effect shall forthwith
be readjusted (effective only with respect to any exercise of this Warrant after
such readjustment) to the Maximum Price and Minimum Price which would then be in
effect  had  the  adjustment made upon the issue, sale, distribution or grant of
such  Options  or  Convertible  Securities  been  made  based  upon such changed
purchase price, additional consideration or conversion rate, as the case may be;
provided,  however, that such readjustment shall give effect to such change only
--------   -------
with  respect  to  such  Options  and  Convertible  Securities  as  then  remain
outstanding.  If,  at  any  time  after  any adjustment of the Minimum Price and
Maximum  Price shall have been made pursuant to this paragraph 4 on the basis of
the  issuance  of  any  Option  or  Convertible  Securities  or  after  any  new
adjustments of the Minimum Price and Maximum Price shall have been made pursuant
to  this paragraph, the right of conversion, exercise or exchange in such Option
or  Convertible  Securities  shall  expire  or  terminate,  and  the  right  of
conversion,  exercise  or  exchange  in  respect  of a portion of such Option or
Convertible  Securities  shall not have been exercised, such previous adjustment
shall  be  rescinded  and annulled.  Thereupon, a recomputation shall be made of
the effect of such Option or Convertible Securities on the basis of treating the
number  of  shares  of  Common  Stock,  if  any,  theretofore actually issued or
issuable pursuant to the previous exercise of such right of conversion, exercise
or  exchange  as  having  been  issued  on the date or dates of such conversion,
exercise  or exchange and for the consideration actually received and receivable
therefor,  and  treating  any  such  Option or Convertible Securities which then
remain  outstanding  as having been granted or issued immediately after the time
of  any such issuance for the consideration per share for which shares of Common
Stock  are  issuable under such Option or Convertible Securities; and, if and to
the extent called for by the foregoing provisions of this paragraph on the basis
aforesaid,  a  new  adjustment  of  the Minimum Price and Maximum Price shall be
made,  which  new adjustment shall supersede (effective only with respect to any
exercise  of  this  Warrant  after such readjustment) the previous adjustment so
rescinded  and  annulled.

          (v)     If  the  Company  shall  after  the  date  of issuance of this
Warrant  pay a dividend or make any other distribution upon any capital stock of
the  Company  payable  in Common Stock, options or Convertible Securities, then,
for  purposes  of paragraph (i) above, such Common Stock, Options or Convertible
Securities,  as  the  case  may  be, shall be deemed to have been issued or sold
without  consideration.

                                        5
<PAGE>
          (vi)     If  any  shares  of  Common  Stock,  Options  or  Convertible
Securities  shall  be  issued,  sold  or distributed for cash, the consideration
received  therefor  shall  be  deemed  to  be the amount received by the Company
therefor  net  of any underwriting commissions or concessions paid or allowed by
the  Company in connection therewith.  If any shares of Common Stock, Options or
Convertible  Securities shall be issued, sold or distributed for a consideration
other than cash, the amount of the consideration other than cash received by the
Company  shall  be  deemed to be the fair market value of such consideration, as
determined  in  good  faith  by the Board of Directors of the Company, provided,
however, that the fair market value of any security for which a last sales price
is  available shall be the market price of such security, after deduction of any
expenses  incurred  and  any  underwriting  commissions  or  concessions paid or
allowed  by the Company in connection therewith.  If any shares of Common Stock,
Options  or Convertible Securities shall be issued in connection with any merger
in  which  the Company is the surviving corporation, the amount of consideration
therefor  shall  be  deemed  to  be the fair market value, as determined in good
faith  by  the  Board of Directors of the Company, of such portion of the assets
and  business  of  the nonsurviving corporation as shall be attributable to such
Common  Stock,  Options  or  Convertible Securities, as the case may be.  If any
Options  shall  be  issued  in  connection  with  the  issue  and  sale of other
securities of the Company, together comprising one integral transaction in which
no  specific  consideration is allocated to such Options by the parties thereto,
such  Options  shall  be  deemed  to have been issued for without consideration.

          (vii)     If  the  Company  shall set a record date for the purpose of
entitling  the  holders  of  the  Common  Stock  to  receive a dividend or other
distribution  payable  in  Common Stock, Options or Convertible Securities or to
subscribe  for or purchase Common Stock, Options or Convertible Securities, then
such record date shall be deemed to be the date of the issue, sale, distribution
or  grant  of the shares of Common Stock deemed to have been issued or sold upon
the declaration of such dividend or the making of such other distribution or the
date  of the granting of such right of subscription or purchase, as the case may
be.

          (viii)     For  purposes  of  determining  whether  any  adjustment is
required  pursuant to this paragraph 4 any security of the Company having rights
substantially equivalent to the Common Stock as to dividends or upon liquidation
dissolution  or  winding  up of the Company shall be treated as if such security
were  Common  Stock.

          (c)     If  the  Company  shall  after  the  date  of issuance of this
Warrant  issue  or  distribute  to all or substantially all holders of shares of
Common  Stock  evidences of indebtedness, any other securities of the Company or
any  property,  assets  or  cash,  and if such issuance or distribution does not
constitute  a  Common  Stock  Reorganization or a Common Stock Distribution (any
such  nonexcluded event being herein called a "Dividend"), the Minimum Price and
Maximum  Price  shall  be  decreased  (but not increased), effective immediately
after  the  record  date  at  which  the  holders  of shares of Common Stock are
determined  for purposes of such Dividend, to a number determined by multiplying
the  Minimum  Price  and  Maximum  Price  immediately  before such Dividend by a
fraction,  the  numerator  of  which  shall be the last sales price per share of
outstanding  Common  Stock of the Company on such record date less the then fair
market  value,  as  determined  in  good  faith by the Board of Directors of the
Company,  of  the  evidences  of  indebtedness, securities, cash, or property or
other  assets  issued  or  distributed  in

                                        6
<PAGE>
such  Dividend  with respect to one share of Common Stock and the denominator of
which  shall  be  the  last sales price per share of outstanding Common Stock on
such  record  date.  If  after  the date of issuance of this Warrant the Company
repurchases  shares  of Common Stock for a per share consideration which exceeds
the  last sales price (as calculated immediately prior to such repurchase), then
the  Minimum  Price  and  Maximum Price shall be adjusted in accordance with the
foregoing  provision,  as  if,  in lieu of such repurchases, the Company had (A)
distributed  a  Dividend having a fair market value, as determined in good faith
by  the  Board  of  Directors of the Company, equal to the fair market value, as
determined  in  good  faith  by  the  Board  of Directors of the Company, of all
property  and cash expended in the repurchases, and (B) effected a reverse split
of the Common Stock in the proportion required to reduce the number of shares of
Common  Stock  outstanding  from  (I)  the  number  of  such  shares outstanding
immediately  before  such  first  repurchase  to  (II) the number of such shares
outstanding  immediately  following  all  the  repurchases.  In  lieu  of  the
adjustments  provided  for  in this paragraph 4(c) as a result of a Dividend, at
the  option  of  Holder,  the  Company  shall  instead  pay to the Holder a cash
Dividend  equal  to  the  amount of consideration to which the Holder would have
been  entitled  if the Holder had fully exercised this Warrant immediately prior
to  the  record  date  at  which  the  holders  of  shares  of Common Stock were
determined  for  purposes  of  such  Dividend.

          (d)     If  after  the date of issuance of this Warrant there shall be
any  consolidation  or  merger  to  which  the  Company is a party, other than a
consolidation  or  a merger in which the Company is a continuing corporation and
which does not result in any reclassification of, or change (other than a Common
Stock Reorganization or a change in par value), in, outstanding shares of Common
Stock,  or  any sale or conveyance of the property of the Company as an entirety
or  substantially  as  an  entirety  (any  such  event  being  called a "Capital
Reorganization"),  then,  effective  upon  the  effective  date  of such Capital
Reorganization,  the  Holder  shall have the right to purchase, upon exercise of
this  Warrant  and in lieu of the shares of Common Stock immediately theretofore
purchasable  hereunder,  the  kind  and  amount  of  shares  of  stock and other
securities  and  property  (including cash) which the Holder would have owned or
have  been entitled to receive after such Capital Reorganization if this Warrant
had  been  exercised  immediately prior to such Capital Reorganization, assuming
such  holder  (i)  is  not  a person with which the Company consolidated or into
which  the Company merged or which merged into the Company or to which such sale
or  conveyance  was  made,  as  the  case  may  be ("constituent person"), or an
Affiliate  of  a  constituent  person  and (ii) failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash or other property
receivable upon such Capital Reorganization (provided that if the kind or amount
of  securities,  cash  or  other  property  receivable  upon  such  Capital
Reorganization  is  not the same for each share of Common Stock held immediately
prior  to  such  consolidation,  merger,  sale  or  conveyance  by  other than a
constituent  person  or an affiliate thereof and in respect of which such rights
of  election  shall not have been exercised ("non-electing share"), then for the
purposes  of  this  paragraph  the  kind and amount of shares of stock and other
securities  or  other  property  (including  cash)  receivable upon such Capital
Reorganization shall be deemed to be the kind and amount so receivable per share
by  a  plurality  of  the non-electing shares).  As a condition to effecting any
Capital  Reorganization,  the Company or the successor or surviving corporation,
as  the  case may be, shall execute and deliver to the Holder an agreement as to
the  Holder's  rights  in  accordance  with  this  paragraph 4(d), providing for
subsequent  adjustments  as  nearly  equivalent  as  may  be  practicable to the
adjustments  provided for in this paragraph 4.  The provisions of this paragraph
4(d)  shall  similarly  apply  to  successive  Capital  Reorganizations.

                                        7
<PAGE>
          (e)     If  after the date of the issuance of this Warrant the Company
shall  issue  by reclassification of its shares of Common Stock other securities
of  the  Company,  then  the  number  of shares of Common Stock purchasable upon
exercise  of the Warrant immediately prior to such issuance shall be adjusted so
that  the  Holder upon exercise hereof shall be entitled to receive the kind and
number  of  shares  of  Common Stock or other securities of the Company which it
would  have owned or have been entitled to receive after such issuance, had this
Warrant  been  exercised  immediately  prior to such issuance or any record date
with  respect thereto.  An adjustment made pursuant to this paragraph 4(e) shall
become  effective  upon  the date of the issuance retroactive to the record date
with  respect  thereto,  if  any.  Such  adjustment  shall  be made successively
whenever  such  an  issuance  is  made.

          (f)     If any event occurs after the date of issuance of this Warrant
as  to  which  the  foregoing  provisions  of  this paragraph 4 are not strictly
applicable  or, if strictly applicable, would not, in the good faith judgment of
the Board of Directors of the Company, fairly protect the purchase rights of the
Warrant  in  accordance  with  the  essential  intent  and  principles  of  such
provisions,  then  such  Board shall make such adjustments in the application of
such  provisions,  in  accordance  with such essential intent and principles, as
shall  be  reasonably  necessary,  in  the  good faith opinion of such Board, to
protect  such  purchase  rights  as  aforesaid,  but  in no event shall any such
adjustment  have the effect of increasing the Minimum Price or Maximum Price, or
otherwise  adversely  affect  the  Holder.

          (g)     (i) Any adjustments pursuant to this paragraph 4 shall be made
successively  whenever  an  event  referred  to  herein  shall  occur.

                  (ii)  If  the Company shall set a record date to determine the
holders of shares of Common Stock for purposes of a Common Stock Reorganization,
Common Stock Distribution, Dividend or Capital Reorganization, and shall legally
abandon  such action prior to effecting such Action, then no adjustment shall be
made  pursuant  to  this  paragraph  4  in  respect  of  such  action.

                  (iii)  No  adjustment  in  the Minimum Price and Maximum Price
shall be made hereunder unless such adjustment decreases such amount or price by
one percent or more, but any such lesser adjustment shall be carried forward and
shall be made at the time and together with the next subsequent adjustment which
together  with  any  adjustments  so  carried forward shall serve to adjust such
amount  or  price  by  one  percent  or  more.

                  (iv)  No  adjustment  in  the  Minimum  Price  shall  be  made
hereunder  if such adjustment would reduce the exercise price to an amount below
par  value  of  the  Common  Stock, which par value shall initially be $0.01 per
share  of  Common  Stock.

                  (v)  No  adjustment shall be made pursuant to this paragraph 4
in  respect of (A) exercises or conversions of any rights, warrants, options, or
convertible  securities  outstanding  on  the  date hereof, (B) the issuance (or
deemed  issuance) or repurchase of shares of Common Stock in connection with the
exercise  of  the  Warrant  or  (C) the issuance of shares of Common Stock in an
underwritten  public  offering  managed  by  a  nationally recognized investment
banking  firm.

                                        8
<PAGE>
                  (vi)  The  Holder may at any time decline any adjustment which
would  otherwise  be  made  under  this  paragraph  4.

          (h)     As  a  condition  precedent  to the taking of any action which
would require an adjustment pursuant to this paragraph 4, the Company shall take
any  action  which may be necessary, including obtaining regulatory approvals or
exemptions,  in  order that the Company may thereafter validly and legally issue
as  fully  paid and nonassessable all shares of Common Stock which the Holder is
entitled  to  receive  upon  exercise  thereof.

          (i)     Not  less  than  30  nor more than 40 days prior to the record
date  or  effective  date,  as  the case may be, of any action which requires or
might  require  an  adjustment or readjustment pursuant to this paragraph 4, the
Company  shall give notice to the Holder of such event, describing such event in
reasonable  detail and specifying the record date or effective date, as the case
may  be,  and,  if  determinable,  the  required  adjustment and the computation
thereof,  if  applicable.  If the required adjustment is not determinable at the
time  of  such  notice,  the  Company  shall  give  notice to the Holder of such
adjustment  and computation promptly after such adjustment becomes determinable.
If  the  Holder  objects  to  any  such  notice within 30 days of receipt of the
Company's  notice,  the  adjustment  will  be  deemed  accepted  by  the Holder.

     5.     Upon  receipt  of  evidence satisfactory to the Company of the loss,
theft,  destruction  or  mutilation  of any Warrant and, in the case of any such
loss,  theft  or  destruction,  upon receipt of indemnity or security reasonably
satisfactory  to  the  Company  (the  original  Warrantholder's  indemnity being
satisfactory indemnity in the event of loss, theft or destruction of any Warrant
owned  by  such  holder), or, in the case of any such mutilation, upon surrender
and  cancellation of such Warrant, the Company will make and deliver, in lieu of
such  lost,  stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
and  representing  the  right to purchase the same aggregate number of shares of
Common  Stock  as  provided  for  in  such  lost, stolen, destroyed or mutilated
Warrant.

     6.     This  Warrant  shall  not  entitle  the  Holder hereof to any voting
rights  or  other  rights  as  a  stockholder  of  the  Company.

     7.     (a)     The  Holder of this Warrant, by acceptance hereof, agrees to
give  written  notice  to  the  Company  before  transferring  this  Warrant  or
transferring  any  Common  Stock  issuable or issued upon the exercise hereof of
such  Holder's intention to do so, describing briefly the manner of any proposed
transfer  of this Warrant or such Holder's intention as to the disposition to be
made  of  shares  of  Common  Stock issuable or issued upon the exercise hereof.
Such Holder shall also provide the Company with an opinion of counsel reasonably
satisfactory  to  the  Company  to the effect that the proposed transfer of this
Warrant  or  disposition of shares received upon exercise hereof may be effected
without  registration  or  qualification  (under  any  Federal or State law) and
without  causing  the  loss  of  the  applicable  securities  law  registration
exemption(s)  relied  upon  by  the  Company  when it issued this Warrant.  Upon
receipt  of such written notice and opinion by the Company, such Holder shall be
entitled  to  transfer  this  Warrant, or to exercise this Warrant in accordance
with  its  terms  and  dispose  of  the  shares

                                        9
<PAGE>
received  upon  such  exercise  or to dispose of shares of Common Stock received
upon  the previous exercise of this Warrant, all in accordance with the terms of
the notice delivered by such Holder to the Company, provided that an appropriate
legend  respecting  the aforesaid restrictions on transfer and disposition shall
be  endorsed  on  this  Warrant  or  the  certificates  for  such  shares.

          (b)     This Warrant (and the shares of Common Stock issuable upon the
exercise  of  this  Warrant)  is entitled to the benefit of certain registration
rights  pursuant to a Registration Rights Agreement, a copy of which is attached
hereto  as  Schedule  1.

     8.     Subject  to  the  provisions of paragraph 7 hereof, this Warrant and
all  rights  hereunder  are transferable, in whole or in part, without charge to
the  Holder  hereof, at the principal office of the Company by the Holder hereof
in  person  or  by  its duly authorized attorney, upon surrender of this Warrant
properly endorsed and this Warrant is exchangeable, upon the surrender hereof by
the  Holder  hereof at the office of the Company, for new Warrants of like tenor
representing in the aggregate the right to subscribe for and purchase the number
of  shares which may be subscribed for and purchased hereunder, each of such new
Warrants  to  represent  the rights to subscribe for and purchase such number of
shares  as  shall  be  designated  by  said  Holder  hereof  at the time of such
surrender.  Each  taker  and  Holder  of  this Warrant, by taking or holding the
same, consents and agrees that the bearer of this Warrant, when endorsed, may be
treated  by  the  Company and all other persons dealing with this Warrant as the
absolute owner hereof for any purpose and as the person entitled to exercise the
rights  represented  by  this Warrant, or to transfer hereof on the books of the
Company,  any notice to the contrary notwithstanding; but until such transfer on
such  books, the Company may treat the registered Holder hereof as the owner for
all  purposes.

     9.     Any  notices  required  or  permitted to be given under the terms of
this  Warrant shall be sent by certified or registered mail (with return receipt
requested)  or  delivered  personally  or  by  courier  (including  a nationally
recognized overnight delivery service) or by facsimile transmission.  Any notice
so  given shall be deemed effective three days after being deposited in the U.S.
Mail,  or  upon  receipt  if  delivered  personally  or  by courier or facsimile
transmission, in each case addressed to a party at the following address or such
other  address as each such party furnishes to the other in accordance with this
paragraph  9:

If  to  the  Company:
     The  Female  Health  Company
          875  North  Michigan  Avenue
          Suite  3660
          Chicago,  IL  60611
          Telephone:  (312)  280-1119
          Facsimile:  (312)  280-9360
          Attention:  Mr.  O.B.  Parrish

                                       10
<PAGE>
with  a  copy  to:
     Reinhart,  Boerner,  Van  Deuren,
          Norris  &  Rieselbach,  s.c.
          1000  North  Water  Street
          Suite  2100
          Milwaukee,  WI  53202
          Telephone:  (414)  298-1000
          Facsimile:  (414)  298-8097
          Attention:  Mr.  James  M.  Bedore,  Esq.

If  to  the  Holder:

     Heartland  Bank
          212  S.  Central  Avenue
          St.  Louis,  Missouri  63105
          Telephone:  (314)  512-8500
          Facsimile  :  (314)  512-8501
          Attention:  David  Puricelli  and  Andrew  S.  Love

with  a  copy  to:

     Bryan  Cave  LLP
          One  Metropolitan  Square
          Suite  3600
          St.  Louis,  MO  63102
          Telephone:  (314)  259-2000
          Facsimile:  (314)  259-2020
          Attention:  Mr.  Mark  B.  Hillis,  Esq.

     10.     (a)     No  failure  or delay of the Holder in exercising any power
or  right  hereunder  shall operate as a waiver thereof, nor shall any single or
partial  exercise  of  any  such  right  or  power,  or  any  abandonment  or
discontinuance  of steps to enforce such a right or power, preclude any other or
further  exercise  thereof  or  the  exercise  of any other right or power.  The
rights and remedies of the Holder are cumulative and not exclusive of any rights
or remedies which it would otherwise have. The provisions of this Warrant may be
amended,  modified  or  waived  with  (and only with) the written consent of the
Company and the Holder.  The provisions of the Registration Rights Agreement may
be amended, modified or waived only in accordance with the respective provisions
thereof.

          (b)     Any  such  amendment, modification or waiver effected pursuant
to  this  paragraph  10  or the applicable provisions of the Registration Rights
Agreement  shall  be  binding  upon  the  Holder of the Warrant and Common Stock
issuable  upon  exercise,  upon each future holder thereof and upon the Company.
In  the  event  of  any such amendment, modification or waiver the Company shall
give  prompt  notice thereof to the Holder and, if appropriate, notation thereof
shall be made on any Warrant thereafter surrendered for registration of transfer
or  exchange.  No  notice or demand on the Company in any case shall entitle the
Company  to  any  other  or  further  notice  or  demand  in  similar  or  other
circumstances.

                                       11
<PAGE>
     11.     All  representations,  warranties and covenants made by the Company
herein or in any certificate or other instrument delivered by or on behalf of it
in  connection  with the Warrant shall be considered to have been relied upon by
the  Holder  and  shall  survive  the  issuance  and  delivery  of  the Warrant,
regardless  of  any investigation made by the Holder, and shall continue in full
force  and  effect  so long as any Warrant is outstanding. All statements in any
such  certificate  or  other  instrument  shall  constitute  representations and
warranties  hereunder.

     12.     All  covenants,  stipulations, promises and agreements contained in
this  Warrant  by  or  on  behalf  of  the Company shall bind its successors and
assigns,  whether  so  expressed  or  not.

     13.     In  case  any  one  or  more  of  the  provisions  contained in the
Registration  Rights  Agreement  or  this  Warrant  shall be invalid, illegal or
unenforceable  in  any  respect, the validity, legality or enforceability of the
remaining  provisions  contained  herein  and  therein  shall  not in any way be
affected  or  impaired  thereby.  The  parties  shall  endeavor  in  good  faith
negotiations  to  replace  the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of  the  invalid,  illegal  or  unenforceable  provisions.

     14.     The  Company shall not by any action including, without limitation,
amending  its  certificate  of  incorporation  or  through  any  reorganization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities  or any other voluntary action, avoid or seek to avoid the observance
or  performance  of  any  at the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such  actions  as  may  be necessary or appropriate to protect the rights of the
Holder against impairment. Without limiting the generality of the foregoing, the
Company  will  (a)  not,  directly  or indirectly, increase the par value of any
shares  of  Common  Stock receivable upon the exercise of this warrant above the
amount payable therefor upon such exercise immediately prior to such increase in
par  value, (b) take all such action as may be necessary or appropriate in order
that  the  Company  may  validly  and legally issue fully paid and nonassessable
(subject  to  Wisconsin  law)  shares  of Common Stock upon the exercise of this
warrant, and (c) use its commercially reasonable best efforts to obtain all such
authorizations  exemptions  or  consents  from any public regulatory body having
jurisdiction  thereof  as  may be necessary to enable the Company to perform its
obligations  under  this  Warrant.

     15.     (a) Any legal action or proceeding with respect to this Warrant may
be brought in the courts of the State of Missouri located in St. Louis County or
the  City  of  St.  Louis  or  of  the United States for the Eastern District of
Missouri,  and,  by  execution  and  delivery  of  this  Warrant,  the  Company
irrevocably  accepts  for  itself  and in respect of its property, generally and
unconditionally,  the  non-exclusive  jurisdiction  of the aforesaid courts. The
Company  hereby  waives  personal  service  of  any  and all process upon it and
consents that all such service of process may be made by registered mail (return
receipt requested) directed to the Company at its address set forth in paragraph
9  and  service  so made shall be deemed to be completed five (5) days after the
same  shall  have been deposited in the U.S. mails.  Nothing herein shall affect
the right of the Holder to serve process in any other manner permitted by law or
to  commence  legal  proceedings or otherwise proceed against the Company in any
other  jurisdiction.

                                       12
<PAGE>
          (b)     The  Company  hereby irrevocably waives any objection which it
may now or hereafter have to the laying of venue of any of the aforesaid actions
or  proceedings arising out of or in connection with this Warrant brought in the
courts referred to in clause (a) above and hereby further irrevocably waives and
agrees  not  to  plead  or  claim  in  any  such  court  that any such action or
proceeding  brought in any such court has been brought in an inconvenient forum.

     16.     All  questions  concerning  this  Warrant  will  be  governed  and
interpreted  and  enforced in accordance with the laws of the State of Missouri,
without  giving  effect  to  rules  governing  the  conflict  of  laws.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly  authorized  officer  and  this  Warrant  to  be  dated as of May 18, 2001.

                              THE  FEMALE  HEALTH  COMPANY

                              By
                                ------------------------------------------------

                              Its
                                ------------------------------------------------

                                       13
<PAGE>
                               FORM OF ASSIGNMENT
                       (To Be Signed Only Upon Assignment)

     FOR  VALUE  RECEIVED,  the  undersigned hereby sells, assigns and transfers
unto ___________________________ all of the rights of the undersigned under this
Warrant,  with  respect  to  the  guarantee amount set forth below, and appoints
___________________________  to transfer this Warrant on the books of The Female
Health  Company  with  the  full  power  of  substitution  in  the  premises.
<TABLE>
<CAPTION>

NAME OF ASSIGNEE  ADDRESS  GUARANTEE AMOUNT
----------------  -------  ----------------
<S>               <C>      <C>
</TABLE>

Dated:  ______________________

In  the  presence  of:

___________________________________           __________________________________

(Signature  must  conform in all respects to the name of the holder as specified
on  the  face  of  this  Warrant  without  alteration, enlargement or any change
whatsoever,  and  the  signature  must  be  guaranteed  in  the  usual  manner.)

                                       14
<PAGE>
                                SUBSCRIPTION FORM

           To be Executed by the Holder of this Warrant if such Holder
              Desires to Exercise this Warrant in Whole or in Part:

To:     THE  FEMALE  HEALTH  COMPANY  (the  "Company")

          The  undersigned  ________________________________

          Please  insert  Social  Security  or  other
          identifying  number  of  Subscriber:

          ______________________________

hereby  irrevocably elects to exercise the right of purchase represented by this
Warrant  for,  and  to purchase thereunder, _________ shares of the Common Stock
provided for therein and tenders payment herewith to the order of the Company in
the  amount  of $___________, such payment being made as provided on the face of
this  Warrant,  based  upon  an  exercise  with respect to a Guarantee Amount of
$__________  and  a  purchase  price  of  $_______  per  share.

     Please  issue  a  new  Warrant  for the unexercised portion of the attached
Warrant  in  the  name  of the undersigned or in such other name as is specified
below.

     The  undersigned requests that certificates for such shares of Common Stock
be  issued  as  follows:

Name:

Address:

Deliver  to:

Address:

Dated:                    Signature ____________________________________________

Note:  The  signature on this Subscription Form must correspond with the name as
written upon the face of this Warrant in every particular, without alteration or
enlargement  or  any  change  whatever.

                                       15

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