Document:

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                                                                     EXHIBIT 4.2

                           MOBILITY ELECTRONICS, INC.

             SERIES F PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

                                JANUARY 14, 2003

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                           MOBILITY ELECTRONICS, INC.

             SERIES F PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

         This Series F Preferred Stock and Warrant Purchase Agreement (the
"Agreement") is made as of January 14, 2003, by and between Mobility
Electronics, Inc., a Delaware corporation (the "Company"), and
___________________ (the "Investor").

         The parties hereby agree as follows:

         1.       PURCHASE AND SALE OF PREFERRED STOCK AND WARRANT.

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

                           (a) The Company is undertaking a private placement
(the "Offering") to "accredited investors" (as such term is defined in Section
501(a) of Regulation D promulgated under the Securities Act of 1933, as amended
(the "Act")) ("Accredited Investor") of up to 865,051 shares of Series E
Preferred Stock, par value $0.01 per share (the "Series E Stock") at a purchase
price of $0.7225 per share (the "Issuance Price") and up to 729,407 shares of
Series F Preferred Stock, par value $0.01 per share (the "Series F Stock") at a
purchase price of $0.85 per share. For each share of Series E Stock purchased by
an Accredited Investor in the Offering, such Accredited Investor will be issued,
for no additional cost, a warrant to purchase twenty-five percent (25%) of a
share of common stock, par value $0.01 per share, of the Company ("Common
Stock"), at an exercise price of $0.867 per share. For each share of Series F
Stock purchased by an Accredited Investor in the Offering, such Accredited
Investor will be issued, for no additional cost, a warrant to purchase
forty-seven percent (47%) of a share of common stock, par value $0.01 per share,
of the Company ("Common Stock"), at an exercise price of $1.02 per share (the
"Warrant Price"). The Series F Stock portion of the Offering has been developed
in order to permit the Company's officers and directors, and their affiliates,
to participate in the Offering without obtaining stockholder approval pursuant
to NASD Rule 4350, and will be offered only to the Company's officers and
directors, and their affiliates. The Offering may be closed at one or more
closings.

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

                           (c) The Company has adopted and filed with the
Secretary of State of the State of Delaware a Certificate of the Designations,
Preferences, Rights and Limitations of Series F Preferred Stock of the Company,
a copy of which is attached hereto as Exhibit A-2 (the "Certificate of
Designations").

                           (d) Subject to the terms and conditions of this
Agreement, Investor agrees to purchase at the Closing (as defined below) and the
Company agrees to sell and issue to Purchaser at the Closing _________ shares of
Series F Stock at the Issuance Price per share, for

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an aggregate purchase price of $__________. The shares of Series F Stock issued
to Purchaser pursuant to this Agreement shall be hereinafter referred to as the
"Stock".

                           (e) Subject to the terms and conditions of this
Agreement, at the Closing the Company agrees to issue to Purchaser, at no
additional cost, a warrant to purchase up to ___________ shares of Common Stock,
at the Warrant Exercise Price per share, which warrant shall be in the form of
Exhibit B attached hereto (the "Warrant"). The Stock and Warrant are sometimes
collectively referred to herein as the "Securities".

                           (f) Notwithstanding any provision in this Agreement
or the Certificate of Designations to the contrary, Purchaser (i) expressly
acknowledges that the issuance consideration for the Series E Stock and Series F
Stock are different, (ii) expressly acknowledges that a purchaser of a share of
Series F Stock will receive warrants to purchase more shares of Common Stock
than a purchaser of a share of Series E Stock, and (iii) consents to the
authorization and issuance by the Company of the Series F Stock in the Offering
and any future issuance of Series F Stock as payment of any dividends required
to be paid to holders of Series F Stock under the Series F Designations.

                           (g) The Company hereby grants to Investor, with
respect to the shares of Common Stock underlying the Stock and the Warrants,
registration rights as set forth in Exhibit C; it being specifically agreed and
understood that the shares of Common Stock underlying the Stock and Warrant will
be included in any registration statement filed by the Company which includes
shares of Common Stock underlying other shares of Series E Stock, Series F Stock
and Common Stock Purchase Warrants sold to Accredited Investors in the Offering.

                  1.2      CLOSING; DELIVERY.

                           (a) The purchase and sale of the Stock shall take
place at the offices of the Company, 17800 N. Perimeter Drive, Suite 200,
Scottsdale, Arizona 85255, at 10:00 a.m. (Scottsdale time), on the date hereof,
or at such other time and place as the Company and Investor agree upon, orally
or in writing (which time and place are designated as the "Closing").

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

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

                  2.1 ORGANIZATION AND GOOD STANDING. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the state of Delaware, with all requisite corporate power and authority to
carry on the business in which it is engaged, to own the properties it owns, to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby.

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                  2.2 AUTHORIZATION AND VALIDITY. The execution, delivery and
performance by the Company of this Agreement and the Warrant, and the
consummation of the transactions contemplated hereby, have been duly authorized
by the Company. This Agreement and the Warrant have been duly executed and
delivered by the Company and constitute legal, valid and binding obligations of
the Company, enforceable against the Company in accordance with their respective
terms, except as may be limited by applicable bankruptcy, insolvency or similar
laws affecting creditors' rights generally or the availability of equitable
remedies.

                  2.3 NO VIOLATION. Neither the execution, delivery or
performance of this Agreement or the Warrant nor the consummation of the
transactions contemplated hereby or thereby will (a) conflict with, or result in
a violation or breach of the terms, conditions and provisions of, or constitute
a default under, the Certificate of Incorporation, as amended, or Bylaws of the
Company or any agreement, indenture or other instrument under which the Company
is bound or (b) violate or conflict with any judgment, decree, order, statute,
rule or regulation of any court or any public, governmental or regulatory agency
or body having jurisdiction over the Company or the properties or assets of the
Company.

                  2.4 FINDER'S FEE. Except as described in Section 7.5 below,
the Company has not incurred any obligation for any finder's, broker's or
agent's fee in connection with the transactions contemplated hereby.

                  2.5 CAPITALIZATION; AUTHORIZATION FOR THE SECURITIES. The
authorized and issued capital stock of the Company are set forth on Exhibit D.
No shares of the stock of the Company are held in the treasury of the Company.
Except as set forth on Exhibit D, there exists no options, warrants,
subscriptions or other rights to purchase, or securities convertible into or
changeable for, the stock of the Company. Except as set forth on Exhibit D,
there exists no rights in favor of any third party to require the Company to
register securities owned by or to be issued to such third party. No shares of
capital stock of the Company have been issued or disposed of in violation of the
preemptive rights of any of the Company's stockholders. The Company has taken
all action necessary to permit it to issue the Stock, Warrant and the shares of
Common Stock underlying the Stock and the Warrant. The Stock and the shares of
Common Stock underlying the Stock and the Warrant when issued pursuant to this
Agreement and/or when converted under the Stock or exercised under the Warrant
(as applicable) will, when issued, be duly authorized, validly issued, fully
paid and nonassessable, free and clear of any liens, claims, charges or security
interests and no stockholder of the Company will have any preemptive right of
subscription or purchase in respect thereof.

                  2.6 SEC REPORTS. Since January 1, 2001, the Company has filed
all forms, documents and reports with the Securities and Exchange Commission
(the "SEC") required to be filed by it pursuant to federal securities laws and
the SEC rules and regulations thereunder (the "SEC Reports"), all of which
complied in all material respects with all applicable requirements of the
Securities Act and the Securities Exchange Act of 1934, as amended. The SEC
Reports do not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein to make the statements contained
therein not misleading.

                  2.7 FINANCIAL STATEMENTS. The consolidated balance sheets and
the related statements of income, stockholders' equity and cash flow (including
the related notes thereto) of

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the Company and its consolidated subsidiaries included in the SEC Reports
complied as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect
thereto, have been prepared in accordance with generally accepted accounting
principles applied on a basis consistent with prior periods (except as otherwise
noted therein) and present fairly the consolidated financial position of the
Company and its consolidated subsidiaries as of their respective dates, and the
results of their operations and their cash flow for the periods presented
therein.

                  2.8 OFFERING. Subject in part to the truth and accuracy of
Investor's representations and warranties set forth in Section 3 of this
Agreement, the offer, sale and issuance of the Securities as contemplated by
this Agreement are exempt from the registration requirements of the Securities
Act and any applicable state securities laws, and neither the Company nor any
authorized agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

         3. REPRESENTATIONS AND WARRANTIES OF INVESTOR. Investor hereby
represents and warrants to the Company that:

                  3.1 AUTHORIZATION. Investor has full power and authority to
enter into this Agreement. This Agreement constitutes the valid and legally
binding obligation of Investor, enforceable in accordance with its terms, except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and any other laws of general application affecting
enforcement of creditors' rights generally, and as limited by laws relating to
the availability of a specific performance, injunctive relief, or other
equitable remedies.

                  3.2 PURCHASE ENTIRELY FOR OWN ACCOUNT. This Agreement is made
with Investor in reliance upon Investor's representation to the Company, which
by Investor's execution of this Agreement Investor hereby confirms, that the
Securities to be acquired by Investor will be acquired for investment for
Investor's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, and that Investor has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, Investor further represents that Investor
does not presently have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participation to such person or to any
third person, with respect to any of the Securities. Investor has not been
formed for the specific purpose of acquiring the Securities.

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

                  3.4 RESTRICTED SECURITIES. Investor understands that the
Securities and the shares of Common Stock underlying the Securities have not
been registered under the Securities Act, by reason of a specific exemption from
the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
Investor's representations as expressed herein. Investor understands that the

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Securities, and the shares of Common Stock underlying the Securities are
"restricted securities" under applicable United States federal and state
securities laws and that, pursuant to these laws, Investor must hold the
Securities indefinitely unless they are registered with the SEC and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. Investor acknowledges that the Company has no
obligation to register or qualify the Securities for resale except as set forth
in Exhibit C. Investor further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various
requirements including, but not limited to, the time and manner of sale, the
holding period for the Securities, and on requirements relating to the Company
which are outside of Investor's control, and which the Company is under no
obligation and may not be able to satisfy.

                  3.5 NO PUBLIC MARKET. Purchaser understands that no public
market now exists, or will ever exist, for the Securities.

                  3.6 LEGENDS. Purchaser understands that the Securities, and
the shares of Common Stock underlying the Securities, may bear one or all of the
following legends (or substantially similar legends):

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

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

                  3.7 ACCREDITED INVESTOR. Investor is an Accredited Investor.

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

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

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

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                  4.3 RESERVATION OF COMMON STOCK ISSUABLE UPON CONVERSION OF
THE STOCK AND EXERCISE OF THE WARRANT. The Common Stock issuable upon conversion
of the Stock and exercise of the Warrant shall have been duly authorized and
reserved for issuance upon such conversion.

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

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

         6. MISCELLANEOUS.

                  6.1 SURVIVAL OF WARRANTIES AND COVENANTS. The warranties and
representations of the Company and Investor contained in or made pursuant to
this Agreement shall survive the execution and delivery of this Agreement and
the Closing for a period of one (1) year following the Closing. The covenants
set forth in this Agreement shall survive the Closing.

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

                  6.3 GOVERNING LAW. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of conflicts of
law.

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

                  6.5 FINDER'S FEE. Each party represents that it neither is nor
will be obligated for any finder's fee or commission in connection with
Investor's investment hereunder. Investor agrees to indemnify and to hold
harmless the Company from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending against
such liability or asserted liability) for which Investor or any of its officers,
employees, or representatives is responsible. The Company agrees to indemnify
and hold harmless Investor from any liability for any commission or compensation
in the nature of a finder's fee (and the

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costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives is
responsible.

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

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

                  6.8 AMENDMENTS AND WAIVERS. Any term of this Agreement may be
amended or waived only with the written consent of the Company and Investor.

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

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

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

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

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

                               MOBILITY ELECTRONICS, INC.

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

                               Address: 17800 N. Perimeter Drive, Suite 200
                                        Scottsdale, Arizona 85255

                               ------------------------------------------------

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                                    EXHIBITS

Exhibit A -     Certificate of the Designations, Preferences, Rights and
                Limitations of Series E Preferred Stock

Exhibit A-2 -   Certificate of the Designations, Preferences, Rights and
                Limitations of Series F Preferred Stock

Exhibit B -     Form of Warrant

Exhibit C -     Registration Rights

Exhibit D -     Schedule of Exceptions to Representations and Warranties

Exhibit E -     Form of Legal Opinion of Jackson Walker L.L.P.

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                                    EXHIBIT C

                               REGISTRATION RIGHTS

                             [See attached document]

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                               REGISTRATION RIGHTS

1.       Definitions.

         (a) As used in this Exhibit C, the following terms shall have the
meanings specified below:

                  (i) "AFFILIATE," of any specified Person means any other
         Person who directly, or indirectly through one or more intermediaries,
         is in control of, is controlled by, or is under common control with,
         such specified Person. For purposes of this definition, control of a
         Person means the power, directly or indirectly, to direct or cause the
         direction of the management and policies of such Person whether by
         contract, securities ownership or otherwise; and the terms
         "controlling" and "controlled" have the respective meanings correlative
         to the foregoing.

                  (ii) "COMMISSION" means the Securities and Exchange
         Commission.

                  (iii) "EXCHANGE ACT" means the Securities Exchange Act of
         1934, as amended, and the rules and regulations of the Commission
         thereunder, or any similar successor statute.

                  (iv) "INVESTORS" means all persons and entities purchasing
         Securities from the Company pursuant to the terms and conditions of the
         Agreement or Stock Purchase Agreements in form and substance
         substantially similar to the Agreement (except as may otherwise be
         contemplated by the Agreement) and any permitted transferee or assignee
         of Registrable Securities who agrees to become bound by all of the
         terms and provisions of this Exhibit C and the applicable Stock
         Purchase Agreement.

                  (v) "PERSON" means any individual, partnership, corporation,
         limited liability company, joint stock company, association, trust,
         unincorporated organization, or a government agency or political
         subdivision thereof.

                  (vi) "PREFERRED STOCK" means the Series E Preferred Stock, par
         value $0.01 per share, and Series F Preferred Stock, par value $0.01
         per share, of the Company

                  (vii) "PROSPECTUS" means the prospectus (including any
         preliminary prospectus and/or any final prospectus filed pursuant to
         Rule 424(b) under the Securities Act and any prospectus that discloses
         information previously omitted from a prospectus filed as part of an
         effective registration statement in reliance on Rule 430A under the
         Securities Act) included in the Registration Statement, as amended or
         supplemented by any prospectus supplement with respect to the terms of
         the offering of any portion of the Registrable Securities covered by
         the Registration Statement and by all other amendments and supplements
         to such prospectus, including all material incorporated by reference in
         such prospectus and all documents filed after the date of such
         prospectus by the Company under the Exchange Act and incorporated by
         reference therein.

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                  (viii) "PUBLIC OFFERING" means a firm commitment underwritten
         offering registered with the Commission and the appropriate state
         securities commissions by the Company of its Common Stock and made
         pursuant to the Securities Act.

                  (ix) "REGISTRABLE SECURITIES" means the shares of Common Stock
         underlying the Preferred Stock and Warrants purchased by Investors in
         the Offering; provided, however, a share of Common Stock shall cease to
         be a Registrable Security for purposes of this Exhibit C when it no
         longer is a Restricted Security.

                  (x) "REGISTRATION STATEMENT" means a registration statement of
         the Company filed on Form S-3 under the Securities Act providing for
         the registration of, and the sale on a continuous or delayed basis by
         the holders of, all of the Registrable Securities pursuant to Rule 415
         under the Securities Act, including the Prospectus contained therein
         and forming a part thereof, any amendments to such registration
         statement and supplements to such Prospectus, and all exhibits and
         other material incorporated by reference in such registration statement
         and Prospectus. In the event that Form S-3 is unavailable for such a
         registration, the Company shall use such other form as is available for
         such a registration.

                  (xi) "RESTRICTED SECURITY" means any share of Common Stock
         except any that (i) has been registered pursuant to an effective
         registration statement under the Securities Act and sold in a manner
         contemplated by the prospectus included in such registration statement,
         (ii) has been transferred in compliance with the resale provisions of
         Rule 144 under the Securities Act (or any successor provision thereto)
         or is transferable pursuant to paragraph (k) of Rule 144 under the
         Securities Act (or any successor provision thereto), or (iii) otherwise
         has been transferred and a new share of Common Stock not subject to
         transfer restrictions under the Securities Act has been delivered by or
         on behalf of the Company.

                  (xii) "SECURITIES ACT" means the Securities Act of 1933, as
         amended, and the rules and regulations of the Commission thereunder, or
         any similar successor statute.

                  (xiii) "STOCK PURCHASE AGREEMENTS" means the Series F
         Preferred Stock and Warrant Purchase Agreement to which this Exhibit C
         is attached and the other purchase agreements executed as part of the
         Offering.

                  (xiv) "WARRANTS" means the Warrants to Purchase Shares of
         Common Stock issued to Investors in the Offering.

         (b) All capitalized terms used and not defined herein have the
respective meaning assigned to them in the Agreement to which this Exhibit C is
attached.

2.       Registration.

         (a) Filing and Effectiveness of Registration Statement. The Company
shall prepare and file with the Commission not later than twenty days following
the initial closing (the "Initial Closing") of sales of Offered Shares and
Warrants under the Offering (the "Filing Deadline") a Registration Statement
relating to the offer and sale of the Registrable Securities by the Investors

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and shall use all commercially reasonable efforts to cause the Commission to
declare such Registration Statement effective under the Securities Act as
promptly as practicable, but not later than 120 days after the Initial Closing.
All of the shares of Common Stock sold in the Offering shall be included in such
Registration Statement; provided, however, that the Company shall not be
required to include in the Registration Statement Registrable Securities of any
Investor who has failed to provide the Company with the information pertaining
to such Investor that is required to be included in such Registration Statement
pursuant to Item 507 and/or Item 508 of Regulation S-K. The Company shall notify
the Investors in writing by telecopy or e-mail notice that such Registration
Statement has been declared effective by the Commission on the date of such
declaration by the Commission. The Company agrees to keep such Registration
Statement effective until the earlier of: (i) the passage of two years from the
effective date of such Registration Statement; or (ii) the date on which all
Registrable Securities may be resold by all Investors by reason of Rule 144(k)
under the Securities Act or any other rule of similar effect.

         (b) Piggyback Registration Rights. (i) Without limiting the obligations
of the Company pursuant to Section 2(a) above, until such date as the
Registration Statement to be filed in accordance with Section 2(a) is declared
effective by the Commission, if the Company proposes to register any of its
Common Stock or any other shares of common stock of the Company under the
Securities Act (other than a registration (A) on Form S-8 or S-4 or any
successor or similar forms, (B) relating to Common Stock or any other shares of
common stock of the Company issuable upon exercise of employee or consultant
share options or in connection with any employee benefit or similar plan of the
Company or (C) in connection with a direct or indirect acquisition by the
Company of another Person or any transaction with respect to which Rule 145 (or
any successor provision) under the Securities Act applies), whether or not for
sale for its own account, it will each such time, give prompt written notice at
least 20 days prior to the anticipated filing date of the registration statement
relating to such registration to the Investors, which notice shall set forth
such Investors' rights under this Section 2(c) and shall offer the Investors the
opportunity to include in such registration statement such number of Registrable
Securities as the Investors may request. Upon the written request of an Investor
made within 10 days after the receipt of notice from the Company (which request
shall specify the number of Registrable Securities intended to be disposed of by
such Investors), the Company will use all reasonable commercial efforts to
effect the registration under the Securities Act of all Registrable Securities
that the Company has been so requested to register by the Investors, to the
extent requisite to permit the disposition of the Registrable Securities to be
so registered; provided, however, that (A) if such registration involves a
Public Offering, the Investors must sell their Registrable Securities to the
underwriters on the same terms and conditions as apply to the Company and (B)
if, at any time after giving written notice of its intention to register any
Common Stock pursuant to this Section 2(b) and prior to the effective date of
the registration statement filed in connection with such registration, the
Company shall determine for any reason not to register such Common Stock, the
Company shall give written notice to the Investors and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection
with such registration. The Company's obligations under this Section 2(b) shall
terminate on the date that the Registration Statement to be filed in accordance
with Section 2(a) is declared effective by the Commission. (ii) If a
registration pursuant to this Section 2(b) involves a Public Offering and the
managing underwriter thereof advises the Company that, in its view, the number
of shares of Common Stock, if any, or other shares of Common Stock that the
Company and the Investors intend to include in such registration exceeds the
largest number of shares of

                                       3

<PAGE>

Common Stock (including any other shares of Common Stock or warrants of the
Company) that can be sold without having a material adverse effect on such
Public Offering (the "Maximum Offering Size"), the Company will include in such
registration only that number of shares of Common Stock which does not exceed
the Maximum Offering Size, in the following order of priorities: (1) first, all
securities the Company proposes to sell for its own account, (2) second, up to
the full number of securities proposed to be registered for the account of the
holders of securities entitled to inclusion of their securities in the
Registration Statement by reason of demand registration rights, and (3) third,
the securities requested to be registered by other holders of securities
entitled to participate in the registration, drawn from them pro-rata based on
the number of shares each has requested to be included in such registration and
the Investors pursuant to this Exhibit C. If as a result of the proration
provisions of this Section 2(b), the Investors are not entitled to include all
such Registrable Securities in such registration, such Investors may elect to
withdraw their request to include any Registrable Securities in such
registration.

         Notwithstanding the foregoing, the Company shall have no obligations
under this Section 2(b) hereof at any time that such Registrable Securities are
the subject of an effective registration statement.

3.       Obligations of the Company. In connection with the registration of the
Registrable Securities, the Company shall use all commercially reasonable
efforts to:

         (a) Subject to the provisions of Section 3(q) hereof, promptly (i)
prepare and file with the Commission such amendments (including post-effective
amendments) to the Registration Statement and supplements to the Prospectus as
may be necessary to keep the Registration Statement continuously effective and
in compliance with the provisions of the Securities Act applicable thereto so as
to permit the Prospectus forming part thereof to be current and useable by
Investors for resales of the Registrable Securities for a period of two years
from the date the Registration Statement is first declared effective by the
Commission (the "Effective Time") or such shorter period that will terminate
when all the Registrable Securities covered by the Registration Statement have
been sold pursuant thereto in accordance with the plan of distribution provided
in the Prospectus or otherwise cease to be Registrable Securities (the
"Registration Period") and (ii) take all lawful action such that each of (A) the
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, not misleading and (B) the Prospectus forming part of the Registration
Statement, and any amendment or supplement thereto, does not at any time during
the Registration Period include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. Notwithstanding the foregoing, the Company's obligations
hereunder shall terminate as to any investor at such time as that Investor's
Registrable Securities can be sold under Rule 144(k);

         (b) During the Registration Period, comply with the provisions of the
Securities Act with respect to the 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

                                       4

<PAGE>

intended methods of disposition by the Investors as set forth in the Prospectus
forming part of the Registration Statement;

         (c) (i) Prior to the filing with the Commission of any Registration
Statement (including any amendments thereto) and the distribution or delivery of
any Prospectus (including any supplements thereto), provide draft copies thereof
to the Investors and reflect in such documents all such comments as the
Investors reasonably may propose (including comments as to the Investors' plans
of distribution); and (ii) furnish to each Investor whose Registrable Securities
are included in the Registration Statement, (A) promptly after the same is
prepared and publicly distributed, filed with the Commission, or received by the
Company, one copy of the Registration Statement, each Prospectus, and each
amendment or supplement thereto, and (B) such number of copies of the Prospectus
and all amendments and supplements thereto and such other documents, as such
Investor may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such Investor;

         (d) (i) Register or qualify the Registrable Securities covered by the
Registration Statement under such securities or "blue sky" laws of all
jurisdictions requiring blue sky registration or qualification, (ii) prepare and
file in such jurisdictions such amendments (including post-effective amendments)
and supplements to such registrations and qualifications as may be reasonably
necessary to maintain the effectiveness thereof at all times during the
Registration Period, (iii) take all such other lawful actions as may be
reasonably necessary to maintain such registrations and qualifications in effect
at all times during the Registration Period, and (iv) take all such other lawful
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection with any of its obligations under this Section 3(d) to
(A) qualify to do business in any jurisdiction where it would not otherwise be
required to qualify but for this Section 3(d), (B) subject itself to general
taxation in any such jurisdiction or (C) file a general consent to service of
process in any such jurisdiction;

         (e) As promptly as practicable after becoming aware of such event,
notify each Investor of the occurrence of any event, 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, in
light of the circumstances under which they were made, not misleading, and
promptly prepare an amendment to the Registration Statement and supplement to
the Prospectus to correct such untrue statement or omission, and deliver a
number of copies of such supplement and amendment to each Investor as such
Investor may reasonably request;

         (f) Notify each Investor who holds Registrable Securities being sold
(or, in the event of an underwritten offering, the managing underwriters) of the
issuance by the Commission of any stop order or other suspension of the
effectiveness of the Registration Statement on the date of receipt of any such
stop order or other suspension, and take all lawful action to effect the
withdrawal, recession or removal of such stop order or other suspension;

         (g) Cause all the Registrable Securities covered by the Registration
Statement to be listed, not later than the date that Registration Statement is
declared effective by the Commission, on a principal national securities
exchange, or included in an inter-dealer quotation

                                       5

<PAGE>

system of a registered national securities association, on or in which
securities of the same class or series issued by the Company are then listed or
included;

         (h) Maintain a transfer agent and registrar, which may be a single
entity, for the Registrable Securities not later than the effective date of the
Registration Statement;

         (i) Reasonably cooperate with the Investors who hold Registrable
Securities being offered to facilitate the timely preparation and delivery of
certificates for the Registrable Securities to be offered pursuant to the
Registration Statement and enable such certificates for the Registrable
Securities to be in such denominations or amounts, as the case may be, as the
Investors reasonably may request and registered in such names as the Investors
may request; and, within five business days after a registration statement which
includes Registrable Securities is declared effective by the Commission, deliver
and cause legal counsel selected by the Company to deliver to the transfer agent
for the Registrable Securities (with copies to the Investors whose Registrable
Securities are included in such registration statement) an appropriate
instruction and, to the extent necessary, an opinion of such counsel;

         (j) Take all such other lawful actions reasonably necessary to expedite
and facilitate the disposition by the Investors of their Registrable Securities
in accordance with the intended methods therefor provided in the Prospectus
which are customary under the circumstances;

         (k) Make generally available to its security holders as soon as
practicable, but in any event not later than three (3) months after (i) the
effective date (as defined in Rule 158(c) under the Securities Act) of the
Registration Statement, and (ii) the effective date of each post-effective
amendment to the Registration Statement, as the case may be, an earnings
statement of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act and the rules and regulations of the Commission thereunder
(including, at the option of the Company, Rule 158);

         (l) In the event of an underwritten offering, promptly include or
incorporate in a Prospectus supplement or post-effective amendment to the
Registration Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such Prospectus supplement or post-effective amendment
as soon as practicable after it is notified of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment;

         (m) In connection with any underwritten offering, make such
representations and warranties to the Investors participating in such
underwritten offering and to the managers, in form, substance and scope as are
customarily made by the Company to underwriters in secondary underwritten
offerings;

         (n) In connection with any underwritten offering, obtain opinions of
counsel to the Company (which counsel and opinions (in form, scope and
substance) shall be reasonably satisfactory to the managers) addressed to the
underwriters, covering such matters as are customarily covered in opinions
requested in secondary underwritten offerings (it being agreed that the matters
to be covered by such opinions shall include, without limitation, as of the date
of the opinion and as of the date the Registration Statement is first declared
effective or most recent

                                       6

<PAGE>

post-effective amendment thereto, as the case may be, the absence from the
Registration Statement and the Prospectus, including any documents incorporated
by reference therein, of an untrue statement of a material fact or the omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading, subject to customary limitations);

         (o) In connection with any underwritten offering, obtain "cold comfort"
letters and updates thereof from the independent public accountants of the
Company (and, if necessary, from the independent public accountants of any
subsidiary of the Company or of any business acquired by the Company, in each
case for which financial statements and financial data are, or are required to
be, included in the Registration Statement), addressed to each underwriter
participating in such underwritten offering (if such underwriter has provided
such letter, representations or documentation, if any, required for such cold
comfort letter to be so addressed), in customary form and covering matters of
the type customarily covered in "cold comfort" letters in connection with
secondary underwritten offerings;

         (p) In connection with any underwritten offering, deliver such
documents and certificates as may be reasonably required by the managers, if
any;

         (q) Notwithstanding anything to the contrary in Section 3, at any time
after the Registration Statement has been declared effective, the Company may
delay the disclosure of material non-public information concerning the Company,
the disclosure of which at the time is not, in the good faith opinion of the
Board of Directors of the Company and its counsel, in the best interest of the
Company (a "Grace Period"); provided, that the Company shall promptly (i) notify
the Investors in writing of the existence of material non-public information
giving rise to a Grace Period and the date on which the Grace Period will begin,
and (ii) notify the Investors in writing in advance of, or on the same date on
which, the Grace Period ends; and, provided further, that during the
Registration Period, there shall be only three Grace Periods (not to exceed 30
days each) nor more than one Grace Period (not to exceed 30 days each) in any
six-month period. For purposes of determining the length of a Grace Period
above, the Grace Period shall begin on and include the date the holders receive
the notice referred to in clause (i) and shall end on and include the date
specified as the Grace Period ending date in the notice referred to in clause
(ii).

         Notwithstanding the foregoing, the Company shall have no obligations
under Section 3(l) through (p) unless it is effecting an underwritten offering
pursuant to Section 2(b).

4.       Obligations of the Investors. In connection with the registration of
the Registrable Securities, the Investors shall have the following obligations,
which obligations shall be several and not joint:

         (a) It shall be a condition precedent to the obligations of the Company
to complete the registration pursuant to this Exhibit C with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities
held by it as shall be reasonably required to effect the registration of such

                                       7

<PAGE>

Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request.

         (b) Each Investor by its acceptance of the Registrable Securities
agrees to cooperate in all reasonable respects with the Company in connection
with the preparation and filing of the Registration Statement hereunder, unless
such Investor has notified the Company in writing of its election to exclude all
of its Registrable Securities from the Registration Statement;

         (c) As promptly as practicable after becoming aware of such event,
notify the Company of the occurrence of any event, 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, in
light of the circumstances under which they were made, not misleading; and

         (d) Each Investor agrees that, upon receipt of any notice from the
Company of the occurrence of any event of the kind described in Section 3(e) or
3(f), it shall immediately discontinue its disposition of Registrable Securities
pursuant to the Registration Statement covering such Registrable Securities
until such Investor's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 3(e) and, if so directed by the Company, such
Investor 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
Investor's possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice.

5.       Expenses of Registration. All expenses, other than underwriting
discounts and commissions arising from sales of Registrable Securities, incurred
in connection with registrations, filings or qualifications pursuant to Section
3, but including, without limitation, all registration, listing, and
qualifications fees, printing and engraving fees and accounting fees shall be
borne by the Company.

6.       Indemnification and Contribution.

         (a) The Company shall indemnify and hold harmless each Investor and
each underwriter, if any, which facilitates the disposition of Registrable
Securities, and each of their respective officers and directors, trustees,
employees, advisors, legal counsel and accountants and each person who controls
such Investor or underwriter within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act (each such person being sometimes
hereinafter referred to as an "Indemnified Person") from and against any losses,
claims, damages or liabilities, joint or several, to which such Indemnified
Person may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Registration Statement or an omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, not misleading, or arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
contained in any Prospectus or an omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; and the

                                       8

<PAGE>

Company hereby agrees to reimburse such Indemnified Person for all reasonable
legal and other expenses incurred by them in connection with investigating or
defending any such action or claim as and when such expenses are incurred;
provided, however, that the Company shall not be liable to any such Indemnified
Person in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon (i) an untrue statement or alleged
untrue statement made in, or an omission or alleged omission from, such
Registration Statement or Prospectus in reliance upon and in conformity with
written information furnished to the Company by such Indemnified Person
expressly for use therein or (ii) in the case of the occurrence of an event of
the type specified in Section 3(e), the use by the Indemnified Person of an
outdated or defective Prospectus after the Company has provided to such
Indemnified Person written notice that such Prospectus is outdated or defective.

         (b) Indemnification by the Investors and Underwriters. Each Investor
agrees, as a consequence of the inclusion of any of its Registrable Securities
in a Registration Statement, and each underwriter, if any, which facilitates the
disposition of Registrable Securities shall agree, as a consequence of
facilitating such disposition of Registrable Securities, severally and not
jointly, to (i) indemnify and hold harmless the Company, its directors
(including any person who, with his or her consent, is named in the Registration
Statement as a director nominee of the Company), its officers, employees,
advisors, legal counsel and accountants and each person, if any, who controls
the Company within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any losses, claims, damages or
liabilities to which the Company or such other persons may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon: (y)
an untrue statement or alleged untrue statement of a material fact contained in
such Registration Statement or Prospectus or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in light of the
circumstances under which they were made, in the case of the Prospectus), not
misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Company by such Investor or underwriter expressly for use therein; or (z) in the
case of the occurrence of an event of the type specified in Section 3(e) above,
the use by the Indemnified Person of an outdated or defective Prospectus after
the Indemnified Person has received from the Company written notice that such
Prospectus is outdated or defective; provided, however, that no Investor or
underwriter shall be liable under this Section 6(b) for any amount in excess of
the net proceeds paid to such Investor or underwriter in respect of shares sold
by it; and (ii) reimburse the Company for any reasonable legal or other expenses
incurred by the Company in connection with investigating or defending any such
action or claim as such expenses are incurred.

         (c) Notice of Claims, Etc. Promptly after receipt by a party seeking
indemnification pursuant to this Section 6 (an "Indemnified Party") of written
notice of any investigation, claim, proceeding or other action in respect of
which indemnification is being sought (each, a "Claim"), the Indemnified Party
shall notify the party against whom indemnification pursuant to this Section 6
is being sought (the "Indemnifying Party") of the commencement thereof; but the
omission to so notify the Indemnifying Party shall not relieve it from any
liability that it otherwise may have to the Indemnified Party, except to the
extent that the Indemnifying Party is materially prejudiced and forfeits
substantive rights and defenses by reason of such failure. In

                                       9

<PAGE>

connection with any Claim as to which both the Indemnifying Party and the
Indemnified Party are parties, the Indemnifying Party shall be entitled to
assume the defense thereof. Notwithstanding the assumption of the defense of any
Claim by the Indemnifying Party, the Indemnified Party shall have the right to
employ one separate legal counsel and to participate in the defense of such
Claim, and the Indemnifying Party shall bear the reasonable fees, out-of-pocket
costs and expenses of such separate legal counsel to the Indemnified Party if
(and only if): (i) the Indemnifying Party shall have agreed to pay such fees,
costs and expenses, (ii) counsel to the Indemnified Party shall reasonably have
concluded that representation of the Indemnified Party and the Indemnifying
Party by the same legal counsel would not be appropriate due to actual or, as
reasonably determined by legal counsel to the Indemnified Party, potentially
differing interests between such parties in the conduct of the defense of such
Claim, or if there may be legal defenses available to the Indemnified Party that
are in addition to or disparate from those available to the Indemnifying Party,
or (iii) the Indemnifying Party shall have failed to employ legal counsel
reasonably satisfactory to the Indemnified Party within a reasonable period of
time after notice of the commencement of such Claim. If the Indemnified Party
employs separate legal counsel in circumstances other than as described in
clauses (i), (ii) or (iii) above, the fees, costs and expenses of such legal
counsel shall be borne exclusively by the Indemnified Party. Except as provided
above, the Indemnifying Party shall not, in connection with any Claim in the
same jurisdiction, be liable for the fees and expenses of more than one firm of
counsel for the Indemnified Party (together with appropriate local counsel). The
Indemnified Party shall not, without the prior written consent of the
Indemnifying Party (which consent shall not unreasonably be withheld), settle or
compromise any Claim or consent to the entry of any judgment that does not
include an unconditional release of the Indemnifying Party from all liabilities
with respect to such Claim or judgment.

         (d) Contribution. If the indemnification provided for in this Section 6
is unavailable to or insufficient to hold harmless an Indemnified Person under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party and the Indemnified Party in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party and
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
such Indemnifying Party or by such Indemnified Party, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 6(d) were determined by
pro rata allocation (even if the Investors or any underwriters were treated as
one entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in this Section 6(d).
The amount paid or payable by an Indemnified Party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
shall be deemed to include any legal or other fees or expenses reasonably
incurred by such Indemnified Party in connection with investigating or defending
any such action or claim. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be

                                       10

<PAGE>

entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Investors and any underwriters in this
Section 6(d) to contribute shall be several in proportion to the percentage of
Registrable Securities registered or underwritten, as the case may be, by them
and not joint.

         (e) Notwithstanding any other provision of this Section 6, in no event
shall any (i) Investor be required to undertake liability to any person under
this Section 6 for any amounts in excess of the dollar amount of the net
proceeds to be received by such Investor from the sale of such Investor's
Registrable Securities pursuant to any Registration Statement under which such
Registrable Securities are to be registered under the Securities Act.

         (f) The obligations of the Company under this Section 6 shall be in
addition to any liability that the Company may otherwise have to any Indemnified
Person and the obligations of any Indemnified Person under this Section 6 shall
be in addition to any liability that such Indemnified Person may otherwise have
to the Company. The remedies provided in this Section 6 are not exclusive and
shall not limit any rights or remedies that may otherwise be available to an
indemnified party at law or in equity.

7.       Rule 144. With a view to making available to the Investors the benefits
of Rule 144 under the Securities Act or any other similar rule or regulation of
the Commission that may at any time permit the Investors to sell securities of
the Company to the public without registration ("Rule 144"), the Company agrees
to:

         (a) comply with the provisions of paragraph (c) (1) of Rule 144; and

         (b) use all commercially reasonable efforts to file with the Commission
in a timely manner all reports and other documents required to be filed by the
Company pursuant to Section 13 or 15(d) under the Exchange Act; and, if at any
time it is not required to file such reports but in the past had been required
to or did file such reports, it will, upon the request of any Investor, make
available other information as required by, and so long as necessary to permit
sales of, its Registrable Securities pursuant to Rule 144.

8.       Assignment. The rights to have the Company register Registrable
Securities pursuant to this Exhibit C may be assigned or transferred only with
the prior written consent of the Company (which consent shall not be
unreasonably withheld or delayed), and any such assignment or transfer without
such consent shall be void and of no effect. Notwithstanding the foregoing, such
consent of the Company shall not be required with respect to: (i) any assignment
or transfer of Registrable Securities to an Affiliate of Investor, including for
this purpose if Investor is an investment company, any fund or account advised
by Investor's investment adviser or any Affiliate thereof; or (ii) any
assignment or transfer of all of the Registrable Securities owned by an
Investor. In the event of any such permitted assignment or transfer by the
Investors to any permitted transferee of all or any portion of such Registrable
Securities such transfer will be allowed only if: (a) the Investor 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, (b) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (i) the name and address of such
transferee or assignee and (ii) the securities with respect to which such
registration rights are being transferred or assigned, (c)

                                       11

<PAGE>

immediately following such transfer or assignment, the securities so transferred
or assigned to the transferee or assignee constitute Restricted Securities, (d)
at or before the time the Company received the written notice contemplated by
clause (b) of this sentence the transferee or assignee agrees in writing with
the Company to be bound by all of the provisions contained herein, and (e) the
Company is furnished with an opinion of counsel, which counsel and opinion shall
be reasonably satisfactory to the Company, to the effect that the permitted
assignment would be in compliance with the Securities Act and State Acts.

9.       Amendment and Waiver. Any provision of this Exhibit C 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 Investors who hold a majority interest of the
Registrable Securities. Any amendment or waiver effected in accordance with this
Section 9 shall be binding upon each Investor and the Company.

10.      Miscellaneous.

         (a) A person or entity shall be 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) Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally or sent by certified mail, postage prepaid, or
by a nationally recognized overnight courier service as follows, and shall be
deemed given three days following the date of mailing, in the case of a notice
sent by certified mail, or, in all other cases, when actually received.

           If to the Company, to:      Mobility Electronics, Inc.
                                       17800 N. Perimeter Drive, Suite 200
                                       Scottsdale, Arizona  85255
                                       Attention: Chief Financial Officer

           If to the Investors, to:    Each Investor at the address provided
                                       in its executed Stock Purchase Agreement

         The Company or any Investor may change the foregoing address by notice
given pursuant to this Section 10(b).

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

         (d) This Exhibit C shall be governed by and interpreted in accordance
with the laws of the State of Delaware, without regard to the conflict of laws
provisions thereof.

                                       12

<PAGE>

         (e) If any term, provision, covenant or restriction of this Exhibit C
is held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

         (f) The Company shall not enter into any agreement with respect to its
securities that is inconsistent with the rights granted to the holders of
Registrable Securities in this Exhibit C or otherwise conflicts with the
provisions hereof. The restrictions on the Company's rights to grant
registration rights under this paragraph shall terminate on the date all
Registrable Securities have been registered pursuant to a Registration Statement
that has been declared effective by the Commission.

         (g) This Exhibit C and the various Stock Purchase Agreements constitute
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. This Exhibit C and such Stock
Purchase Agreements supersede all prior agreements and undertakings among the
parties hereto with respect to the subject matter hereof.

         (h) Subject to the requirements of Section 8 hereof, this Exhibit C
shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto.

         (i) All pronouns and any variations thereof refer to the masculine,
feminine or neuter, singular or plural, as the context may require.

         (j) The headings in this Exhibit C are for convenience of reference
only and shall not limit or otherwise affect the meaning thereof.

                                       13<PAGE>
                                                                     EXHIBIT 4.3

                  CERTIFICATE OF THE DESIGNATIONS, PREFERENCES,
               RIGHTS AND LIMITATIONS OF SERIES E PREFERRED STOCK
                                       OF
                           MOBILITY ELECTRONICS, INC.

                                   ----------

                     Pursuant to Section 151 of the General
                    Corporation Law of the State of Delaware

                                   ----------

         MOBILITY ELECTRONICS, INC. (the "Corporation"), a corporation organized
and existing under the General Corporation Law of the state of Delaware (the
"DGCL"),

         DOES HEREBY CERTIFY:

         That, pursuant to the authority expressly vested in the Board of
Directors by Article Fourth of the Certificate of Incorporation of the
Corporation, and pursuant to the provisions of Section 151 of the General
Corporation Law of the State of Delaware, the Board of Directors duly adopted by
unanimous consent, dated as of January 14, 2003, a resolution providing for the
issuance of up to One Million, Four Hundred Thousand (1,400,000) shares of
Series E Preferred Stock, which resolution is as follows:

         RESOLVED, that pursuant to the authority expressly granted to and
vested in the Board of Directors of the Corporation by the provisions of Article
Fourth of the Certificate of Incorporation of the Corporation, this Board of
Directors hereby creates a series of the Preferred Stock, $0.01 par value, of
the Corporation to consist of One Million, Four Hundred Thousand (1,400,000)
shares, and this Board of Directors hereby fixes the designation and the powers,
preferences and rights, and the qualifications, limitations or restrictions
thereon, of the shares of such series (in addition to the powers, preferences
and rights, and the qualifications, limitations or restrictions thereon, set
forth in the Certificate of Incorporation, as amended, which are applicable to
all series of the Preferred Stock, $0.01 par value, of the Corporation) as
follows:

         One Million, Four Hundred Thousand (1,400,000) shares of Preferred
Stock, par value $0.01 per share, of the Corporation are hereby constituted as a
series of Preferred Stock designated as "Series E Preferred Stock" (hereinafter
called the "Series E Stock") with the powers, preferences and rights hereinafter
set forth.

         1. Definitions. As used herein:

         "Additional Stock" means all capital stock issued by the Corporation
after the date of the first issuance of shares of Series E Stock, other than (i)
Common Stock issuable upon conversion of Series E Stock or Series F Stock, (ii)
capital stock of the Corporation issued at a per share consideration equal to or
greater than the Issuance Consideration, (iii) Series E Stock, Series F Stock
and the warrants to purchase Common Stock issued in the Offering, (iv) Common
Stock issued as a dividend or distribution on the Series E Stock or Series F
Stock, (v) additional shares of Common Stock issuable to the holders of Series C
Stock, Series E Stock or Series F Stock

                                       1
<PAGE>

under the anti-dilution provisions of such Series for events occurring after the
date this Certificate is filed with the Secretary of State of Delaware, (vi)
Common Stock issued as a result of Exempt Issuances, or (vii) additional shares
of Series E Stock or Series F Stock issued as a dividend or distribution on the
Series E Stock or Series F Stock.

         "Board of Directors" means the Board of Directors of the Corporation.

         "Certificate of Designations" means the Certificate of the
Designations, Preferences, Rights and Limitations of Series E Preferred Stock of
the Corporation.

         "Common Stock" means (i) the class of stock designated as the common
stock of the Corporation as of January 1, 2003, or (ii) any other class of stock
resulting from successive changes or reclassification of such stock consisting
solely of changes in par value, or from par value to no par value or from no par
value to par value.

         "Conversion Event" shall have the meaning ascribed thereto in Paragraph
6(b) below.

         "Conversion Price" means the Issuance Consideration divided by the
Conversion Rate in effect at such time.

         "Conversion Rate" means the number of shares of Common Stock into which
a single share of Series E Stock is convertible at such time. The initial
Conversion Rate shall be one. Thereafter, the Conversion Rate shall be subject
to adjustment as provided in Paragraph 6 below.

         "Convertible Securities" means capital stock or other securities,
options, rights or warrants which are convertible into or exchangeable or
exercisable for, with or without payment of additional consideration of cash or
property, Common Stock or rights to acquire Common Stock, either immediately or
upon the arrival of a specified date or the happening of a specified event.

         "Exempt Issuances" means any issuance of capital stock of the
Corporation or Convertible Securities: (i) pursuant to any plan or arrangement
approved by the Board of Directors; (ii) pursuant to any option, warrants, right
or convertible or exchangeable security of the Corporation outstanding as of the
date of filing of this Certificate of Designations with the Secretary of State
of Delaware (although the terms of which may be changed after said date); (iii)
issued in connection with the Offering (including, without limitation, warrants
and stock issued in connection therewith and the securities underlying the
Series E Stock, Series F Stock and such warrants); or (iv) the issuance of any
warrants for nominal consideration in connection with a debt private placement.

         "Fair Market Value" means with respect to a share of Common Stock, the
fair market value of such share, determined by such methods or procedures as
shall be established from time to time by the Board of Directors, provided,
however, that if the Common Stock is listed on a national securities exchange or
quoted in an interdealer quotation system, the Fair Market Value of a share of
Common Stock on a given date shall be based upon the last sales price or, if
unavailable, the average of the closing bid and asked prices per share of the
Common Stock on such date (or, if there was no trading or quotation in the Stock
on such date, on the next preceding date on which there was trading or
quotation) as reported in The Wall Street Journal.

                                       2
<PAGE>

         "Issuance Consideration" means the consideration received by the
Corporation for the issuance of a single share of the Series E Stock subject to
adjustment in the event of a stock split, stock dividend, recapitalization or
the like. The Issuance Consideration is initially $0.7225 per share.

         "Liquidation Event" shall mean any liquidation, dissolution or
winding-up of the Corporation or, at the option of the holders of a majority of
the outstanding Series E Stock, voting as a single class: (i) a consolidation or
merger of the Corporation with or into any other corporation or other business
organization; or (ii) the sale, lease or transfer of all or substantially all of
the assets of the Corporation, except in each case of (i) and (ii), for a
Surviving Combination.

         "Liquidation Preference" shall have the meaning ascribed thereto in
Paragraph 4 below.

         "Non-Surviving Combination" shall mean any merger, consolidation or
other business combination between the Corporation and one or more other Persons
which is not a Surviving Combination, or a sale of all or substantially all of
the assets of the Corporation and its subsidiaries, taken as a whole, to one or
mores such other Persons.

         "Offering" means that certain private placement of up to 1,038,061
shares of Series E Stock, 705,879 shares of Series F Stock and Common Stock
Purchase Warrants undertaken by the Corporation commencing on or about January
14, 2003.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, unincorporated organization or
government or other agency or political subdivision thereof.

         "Preferred Stock" means the preferred stock, par value $0.01 per share,
of the Corporation.

         "Series C Stock" means the Series C Preferred Stock, par value $0.01
per share, of the Company.

         Series F Stock" means the Series F Preferred Stock, par value $0.01 per
share, of the Company.

         "Surviving Combination" means any merger, consolidation or sale of
assets in which the Corporation is the surviving corporation, the holders of the
Series E Stock outstanding immediately prior to such transaction will hold the
same number of shares of Series E Stock with substantially identical
designations and preferences after such transaction as they held immediately
prior to such transaction, the voting power or the number of voting shares
outstanding immediately after such transaction plus the number of shares issued
as a result of such transaction does not exceed by more than 49% the voting
power of the total number of voting shares of the Corporation outstanding
immediately prior to such transaction, and the number of voting shares issuable
as a result of such transaction will not exceed by more than 49% the number of
voting shares of the Corporation outstanding immediately prior to the merger.

                                       3
<PAGE>

         2. Ranking. Except as set forth herein with respect to shares of Series
C Stock, or as may be waived by the holders of a majority of the Series E Stock
then outstanding, the Series E Stock shall rank pari pasu with all other issued
and outstanding shares of Preferred Stock.

         3. Dividends.

            (a) Holders of the Series E Stock shall be entitled to receive, out
of any funds of the Corporation legally available therefore ("Legally Available
Funds") pursuant to the DGCL, dividends, payable at the discretion of the Board
of Directors in cash or in additional shares of Series E Stock (valued at the
Fair Market Value of the shares of Common Stock into which the Series E Stock is
then convertible), in an amount equal to four percent (4%) of the Issuance
Consideration (plus all accrued but unpaid dividends), per share, per annum. The
dividends payable hereunder shall be payable quarterly, on the first business
day of each calendar quarter to holders of record as they appear on the stock
books of the Corporation on the applicable record date, which shall be not more
than 60 nor less than 10 days preceding the payment date for such dividends, as
fixed by the Board of Directors

            (b) Dividends on the shares of Series E Stock shall accrue and be
cumulative from the date of issuance based on a 360-day year consisting of
twelve 30-day months, whether or not (i) dividends on such shares are declared
or (ii) there shall be funds legally available to the Corporation for the
payment of the dividends.

            (c) Dividends shall be payable on parity with all other series of
Preferred Stock which rank junior to or pari passu with the Series E Stock. No
dividends shall be paid on Common Stock, unless all accumulated but unpaid
dividends on the shares of Series E Stock and all other series of Preferred
Stock for all past dividend periods and for the current dividend period shall
have been declared and paid.

            (d) In the event the Board of Directors shall declare a cash
dividend payable upon the outstanding shares of Common Stock out of Legally
Available Funds, the Board of Directors shall at the same time declare a
dividend payable on each share of Series E Stock equal to the amount of the
dividend payable on the number of shares of Common Stock into which each such
share of Series E Stock could then be converted into pursuant to the provisions
of Section 6 below, such number to be determined as of the record date for the
determination of holders of Common Stock entitled to receive such dividends.

         4. Preference on Dissolution, Liquidation or Winding Up.

            (a) In the event of the occurrence of a Liquidation Event, after all
amounts due to the holders of Series C Stock have been paid as a result of such
Liquidation Event, each holder of Series E Stock shall be entitled to receive,
in preference to the holders of Common Stock or any other class of stock or
series thereof ranking junior to the Series E Stock with respect to the
distribution of assets, an amount equal to the product of the number of shares
of Series E Stock held multiplied by the Issuance Consideration, plus an amount
equal to all dividends accrued and unpaid thereon (including interest accrued
thereon, if applicable) to the date fixed for distribution, and no more (the
"Liquidation Preference"). If Legally Available Assets for distribution upon the
occurrence of a Liquidation Event are insufficient to satisfy in

                                       4
<PAGE>

full the Liquidation Preference, then the Liquidation Preference shall be
reduced to such amount as can be satisfied out of the Legally Available Assets,
and such amounts shall be paid to the holders of the Series E Stock on a pari
passu basis (based on the number of shares of Series E Stock held by each such
holder).

            (b) Written notice of the occurrence of a Liquidation Event, stating
a payment date and the place where the distributable amounts shall be payable
shall be given by mail, postage prepaid, not less than 20 days prior to the
payment date stated therein, to the holders of record of the Series E Stock at
their respective addresses as the same shall appear on the books of the
Corporation.

            (c) No payment on account of such Liquidation Event shall be made to
the holders of any class or series of capital stock ranking on a parity with the
Series E Stock in respect of the distribution of assets, unless there shall
likewise be paid at the same time to the holders of the Series E Stock like
proportionate distributive amounts, ratably, in proportion to the full
distributive amounts to which they and the holders of such parity stock are
respectively entitled with respect to such preferential distribution.

         5. Voting Rights. Except as otherwise provided in this Certificate of
Designations, each holder of Series E Stock shall be entitled to vote on all
matters submitted for a vote of the holders of Common Stock a number of votes
equal to the number of full shares of Common Stock into which such holder's
shares of Series E Stock could then be converted pursuant to the provisions of
Paragraph 6 below, such number to be determined as of the record date for the
determination of holders of Common Stock entitled to vote on any such matter,
or, if no record date is fixed, then the record date for determination of
holders of Series E Stock entitled to vote at a meeting of stockholders shall be
at the close of business on the day next preceding the day on which such meeting
is held. Except as otherwise required in this Certificate of Designations or by
the Delaware General Corporation Law, the holders of the Series E Stock shall
vote with the holders of outstanding Common Stock and any other preferred shares
entitled to vote on any such matter, and not as a separate class or series.

         6. Conversion Rights. Each share of Series E Stock may be converted
into shares of Common Stock on the terms and conditions set forth in this
Section 6:

            (a) Each share of Series E Stock shall be convertible at the option
of the holder thereof, at any time and from time to time, in the manner
hereinafter set forth, into a number of fully-paid and nonassessable shares of
Common Stock (rounded to the nearest whole number) at the Conversion Rate in
effect at the time of conversion determined as hereinafter provided.

            (b) Each share of Series E Stock shall convert automatically, and
without any action on the part of the holder thereof, into the number of
fully-paid and nonassessable shares of Common Stock (rounded to the nearest
whole number) determined by applying the Conversion Rate then in effect, at such
time as the closing price of the Common Stock (as reported on the primary market
on which the Common Stock is then trading (e.g., Nasdaq National Market System,
Nasdaq Small Cap Market System, Bulletin Board System)) for any ten (10)
consecutive

                                       5
<PAGE>

trading days is greater than or equal to $2.00 per share (as adjusted for stock
splits, stock dividends, recapitalizations and the like) (a "Conversion Event").

            (c) Upon conversion of any Series E Stock, all accrued and unpaid
dividends on the Series E Stock so converted shall be paid in cash.

            (d) Upon the occurrence of a Conversion Event, the Corporation shall
prepare a notice stating that a Conversion Event has occurred and setting forth
in detail the facts, and such notice shall forthwith be mailed by first class
mail to the holders of the Series E Stock at their last known address shown on
the stock books of the Corporation.

            (e) Upon receipt of written notice of a Conversion Event, each
holder of Series E Stock shall (i) surrender the certificate or certificates
therefor, duly endorsed, at the office of any transfer agent for such Series E
Stock, or if there is no such transfer agent, then at the principal executive
offices of the Corporation and (ii) state in writing therein the name or names
in which such holder wishes the certificate or certificates for the Common Stock
to be issued. The Corporation shall, as soon as practicable thereafter, issue
and deliver at the last known address of each holder of the Series E Stock, or
to his nominee or nominees, certificates for the number of full shares of Common
Stock to which he shall be entitled, as aforesaid, together with cash in lieu of
any fraction of a share as hereinafter provided. Such conversion shall be deemed
to have been made on the date of the Conversion Event, and the person or persons
entitled to receive the Common Stock issuable upon such conversion shall be
treated for all purposes as the record holder or holders of such Common Stock on
said date.

            (f) If the Corporation shall at any time (i) pay or make a dividend
or other distribution on any class or series of capital stock of the Corporation
in Common Stock, (ii) subdivide (by means of a stock split or otherwise) its
outstanding Common Stock into a larger number of shares or (iii) combine (by
means of a reverse stock split or otherwise) its outstanding Common Stock into a
smaller number of shares, the Conversion Rate for the Series E Stock in effect
immediately prior thereto shall be adjusted so that each share of Series E Stock
shall thereafter be convertible into the number of shares of Common Stock which
the holder of one share of Series E Stock would have been entitled to receive
after the happening of any of the events described above had such stock been
converted into Common Stock immediately prior to the record date, if any, in the
case of a dividend, distribution, subdivision or combination with respect to
which the Corporation has fixed a record date for the determination of
stockholders entitled to receive such dividend, distribution, subdivision or
combination or, if no such record date has been fixed, the effective date of
such dividend, distribution, subdivision or combination. An adjustment made
pursuant to this subparagraph (f) shall be effected at the time such dividend or
distribution is made or paid or such subdivision or combination is effected and
shall be effective retroactively with respect to conversions effected subsequent
to any record date described in the immediately preceding sentence.

            (g) In case at any time or from time to time the Corporation shall
pay any dividend or make any other distribution to the holders of Common Stock
of (i) any securities or property of any nature whatsoever (other than cash or
as provided in subparagraph (f) above), or (ii) any warrants or other rights to
subscribe for or purchase capital stock of the Corporation, then the Conversion
Rate shall be adjusted to that number determined by multiplying the

                                       6
<PAGE>

Conversion Rate immediately prior to such adjustment by a fraction (A) the
numerator of which shall be the fair value (as determined in good faith by the
Board of Directors) per share of Common Stock at the date of taking such record
and (B) the denominator of which shall be such fair value per share of Common
Stock minus the portion applicable to one share of Common Stock of the fair
value (as determined in good faith by the Board of Directors) of any and all
such securities or property to be distributed. A reclassification of the Common
Stock into Common Stock and shares of any other class of securities shall be
deemed a distribution by the Corporation to the holders of its Common Stock of
such other Common Stock and of such other class of securities within the meaning
of this subparagraph and, if the outstanding Common Stock shall be changed into
a larger or smaller number of shares of Common Stock as a part of such
reclassification, such change shall be deemed a subdivision or combination, an
the case may be, of the outstanding Common Stock within the meaning of
subparagraph (f) above.

            (h) In case at any time or from time to time the Corporation shall
issue or sell any Additional Stock for a consideration per share less than the
Issuance Consideration, then the Conversion Rate shall be adjusted to that
number determined by multiplying the Conversion Rate immediately prior to such
adjustment by a fraction (i) the numerator of which shall be the number of
shares of Common Stock (including shares of Common Stock underlying the Series E
Stock) outstanding immediately prior to the issuance of such shares of
Additional Stock plus the number of such shares of Additional Stock so issued
and (ii) the denominator of which shall be the number of shares of Common Stock
(including shares of Common Stock underlying the Series E Stock) outstanding
immediately prior to the issuance of the shares of Additional Stock plus the
number of shares of Common Stock which the aggregate consideration for the total
number of such shares of Additional Stock so issued would purchase at the
Conversion Price in effect immediately prior to the issuance of the Additional
Stock. For the purposes of this subparagraph, the date as of which the
Conversion Price of the Common Stock shall be computed shall be the earlier of
(i) the date on which the Corporation shall enter into a firm contract for the
issuance of such Additional Stock or (ii) the date of actual issuance of such
Additional Stock. The provisions of this subparagraph shall not apply to any
issuance of Additional Stock for which an adjustment is provided under
subparagraph (g) above. No adjustment of the Conversion Rate shall be made under
this subparagraph upon the issuance of any shares of Additional Stock which are
issued pursuant to the exercise of any warrants or any other subscription or
purchase rights or pursuant to the exercise of any conversion or exchange rights
in any Convertible Securities, if any such adjustment shall previously have been
made upon the issuance of such warrants or other rights or upon the issuance of
such Convertible Securities (or upon the issuance of any warrant or other rights
therefor) pursuant to subparagraph 5(f) or (g) above.

            (i) In case at any time or from time to time the Corporation shall
distribute or shall in any manner (whether directly or indirectly) issue or sell
any Convertible Securities (excluding Exempt Issuances), whether or not the
rights to exchange or convert thereunder are immediately exercisable, and the
consideration per share for which additional Common Stock may at any time
thereafter be issuable pursuant to such warrants, options or other rights or
pursuant to the terms of such Convertible Securities shall be less than the
Issuance Consideration, then the Conversion Rate shall adjusted as provided in
subparagraph (h) above on the basis that (i) the maximum number of shares of
Additional Stock issuable pursuant to all such Convertible Securities on the
date of issuance of such Convertible Securities shall be deemed to

                                       7
<PAGE>

have been issued as of the date of the determination of the Conversion Price as
hereinafter provided, and (ii) the aggregate consideration for such maximum
number of shares of Additional Stock shall be deemed to be the minimum
consideration received and receivable by the Corporation for the issuance of
such Convertible Securities. For the purposes of this subparagraph, the date on
which the Conversion Price shall be computed shall be the earliest of (i) the
date on which the Corporation shall take a record of the holders of its Common
Stock for the purpose of entitling them to receive any such Convertible
Securities, (ii) the date on which the Corporation shall enter into a firm
contract for the issuance of such Convertible Securities or (iii) the date of
actual issuance of such Convertible Securities. No adjustment of the Conversion
Rate shall be made under this subparagraph upon the issuance of any Convertible
Securities which are issued pursuant to the exercise of any warrants or any
subscription or purchase rights therefor, if any such adjustment shall
previously have been made upon the issuance of such warrants or other rights
pursuant to any of the above subparagraphs.

            (j) If, at any time after any adjustment of the Conversion Rate
shall have been made pursuant to any of the above subparagraphs on the basis of
the issuance of Convertible Securities, or after any new adjustments of the
Conversion Rate shall have been made pursuant to this subparagraph (j),

                (i) such warrants or rights or the right of conversion or
            exchange in such other Convertible Securities shall expire, and a
            portion of such warrants or rights, or the right of conversion or
            exchange in respect of a portion of such other Convertible
            Securities, as the came may be, shall not have been exercised,
            and/or

                (ii) the consideration per share, of which shares of Common
            Stock are issuable pursuant to such warrants or rights or the terms
            of such other Convertible Securities, shall be increased solely by
            virtue of provisions therein contained for an automatic increase in
            such consideration per share upon the arrival of a specified date or
            the happening of a specified event,

such previous adjustment shall be rescinded and annulled as to any shares of
Series E Stock then outstanding and the shares of Common Stock which were deemed
to have been issued by virtue of the computation made in connection with the
adjustment so rescinded and annulled, shall no longer be deemed have been issued
by virtue of such computation. Thereupon, a recomputation (assuming that all
shares of Series E Stock on the date of the initial computation are outstanding
on the date of such recomputation) shall be made of the affect of such rights or
options or other Convertible Securities on the basis of

                (i) treating the number of shares of Common Stock, if any,
            theretofore issued or issuable pursuant to the previous exercise of
            such warrants or rights or right of conversion or exchange, as
            having been issued on the date or dates of such exercise and for the
            consideration actually received and receivable therefor, and

                (ii)  treating any such warrants or rights or any such other
            Convertible Securities which then remain outstanding as having been
            granted or issued immediately after the time of such increase of the
            consideration per share for

                                       8
<PAGE>

            which shares of Common Stock are issuable under such warrants or
            rights or other 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 Conversion Rate shall be
            made, which new adjustment shall supersede the previous adjustment
            so rescinded and annulled.

            (k) The following provisions of this subparagraph (k) shall also be
applicable to the making of adjustments to the Conversion Rate:

                (i) To the extent that any Additional Stock or any Convertible
            Securities or any warrants or other rights to subscribe for or
            purchase any Additional Stock or any Convertible Securities shall be
            issued for a cash consideration, the consideration received by the
            Corporation therefor shall be deemed to be the amount of the cash
            received by the Corporation therefor, or, if such Additional Stock
            or Convertible Securities are offered by the Corporation for
            subscription, the subscription price, or, if such Additional Stock
            or Convertible Securities are sold to underwriters or dealers for
            public offering without a subscription offering, the initial public
            offering price, in any such case without deduction of any
            compensation, discounts or expenses paid or incurred by the
            Corporation for and in the underwriting of, or otherwise in
            connection with, the issuance thereof. To the extent that such
            issuance shall be for a consideration other than cash, then except
            as herein otherwise expressly provided, the amount of such
            consideration shall be deemed to be the fair value of such
            consideration at the time of such issuance as determined in good
            faith by the Board of Directors. In case any shares of Additional
            Stock or any Convertible Securities or warrants or other rights to
            subscribe for or purchase such Additional Stock or Convertible
            Securities shall be issued in connection with any consolidation or
            merger in which the Corporation issues any securities, the amount of
            consideration therefor shall be deemed to be the fair value, as
            determined in good faith by the Board of Directors, of such portion
            of the assets and business of the non-surviving corporation as such
            Board of Directors in good faith shall determine to be attributable
            to such Additional Stock, Convertible Securities, warrants or other
            rights, as the case may be. The consideration for any Additional
            Stock issuable pursuant to any warrants or other rights to subscribe
            for or purchase the same shall be the consideration received by the
            Corporation for issuing such warrants or other rights, plus the
            minimum additional consideration payable to the Corporation upon the
            exercise of such warrants or other rights. The consideration for any
            Additional Stock issuable pursuant to the terms of any Convertible
            Securities shall be the consideration received by the Corporation
            for issuing any warrants or other rights to subscribe for or
            purchase such Convertible Securities, plus the minimum consideration
            paid or payable to the Corporation in respect of the subscription
            for or purchase of such Convertible Securities, plus the minimum
            additional consideration, if any, payable to the Corporation upon
            the exercise of the right of conversion or exchange in such
            Convertible Securities. In case of the issuance at any time of any
            Additional Stock or Convertible Securities in payment or
            satisfaction of any dividends upon any class of capital stock other
            than Common Stock, the Corporation shall be deemed to have received
            for such

                                       9
<PAGE>

            Additional Stock or Convertible Securities consideration equal to
            the amount of such dividend so paid or satisfied.

                (ii) The adjustments required by this Paragraph 6 shall be made
            whenever and as often as any specified event requiring an adjustment
            shall occur, except that no adjustment shall be made (except in the
            case of a subdivision or combination of shares of the Common Stock,
            as provided for in subparagraph(f) above) unless and until such
            adjustment either by itself or with other adjustments not previously
            made adds or subtracts at least 1/20th of a share to or from the
            Conversion Rate in effect immediately prior to the making of such
            adjustment. Any adjustment representing a change of less than such
            minimum amount (except as aforesaid) shall be carried forward and
            made so soon as such adjustment, together with other adjustments
            required by this Paragraph 6 and not previously made, would result
            in a minimum adjustment. For the purpose of any adjustment, any
            specified event shall be deemed to have occurred at the close of
            business on the date of its occurrence.

                (iii) If the Corporation shall take a record of the holder of
            its Common Stock for the purpose of entitling them to receive a
            dividend or distribution or subscription or purchase rights and
            shall, thereafter and before the distribution to stockholders
            thereof, legally abandon its plan to pay or deliver such dividend,
            distribution, subscription or purchase rights, then thereafter no
            adjustment shall be required by reason of the taking of such record
            and any such adjustment previously made in respect thereof shall be
            rescinded and annulled.

            (l) In the case of a merger, or the sale or conveyance of all or
substantially all of the assets of the Corporation for which approval of the
holders of the Common Stock is necessary, or in the case of any capital
reorganization or any reclassification or similar change of the outstanding
Common Stock (other than as at forth in subparagraph (f) above), each share of
Series E Stock, if any, outstanding following such transaction shall thereafter
be convertible into the kind and amount of securities or other securities or
cash or other property receivable upon such merger, sale, conveyance,
reorganization, reclassification or change by a holder of the number of shares
of Common Stock into which such Series E Stock might have been converted
immediately prior to such merger, sale, conveyance reorganization,
reclassification or change, assuming such holder of Common Stock failed to
exercise his rights of election, if any, as to the kind and amount of stock or
other securities or cash or other property receivable upon such merger, sale,
conveyance, reorganization, reclassification or change (provided that if the
kind and amount of stock or other securities or cash or other property
receivable upon such merger, sale, conveyance, reorganization, reclassification
or change is not the same for each share of Common Stock in respect of which
such rights of election shall not have been exercised ("non-electing shares")
then for the purpose of this subparagraph the kind and amount of stock or other
securities or cash or other property receivable upon such merger, sale,
conveyance, reorganization, reclassification or change by each non-electing
share shall be deemed to be the kind and amount so receivable by a plurality of
the non-electing share); and, in any such case, appropriate adjustments (as
determined in good faith by the Board of Directors) shall be made in the
application of the provisions herein set forth with respect to the rights and
interests thereafter of the holders of the Series E Stock to the and that the
provisions set forth heroin (including

                                       10
<PAGE>

provisions with respect to changes in and other adjustments of the Conversion
Rate) shall thereafter be applicable, as nearly as reasonably may be, in
relation to any stock or other property thereafter deliverable upon the
conversion of the Series E Stock.

            (m) Whenever the Conversion Rate or terms of conversion are adjusted
or readjusted as herein provided, the Corporation shall prepare a notice setting
forth such adjustment or readjustment and showing in detail the facts upon which
each adjustment or readjustment is based, and such notice shall forthwith be
mailed by first class mail to the holders of shares of Series E Stock so
affected at their last known address shown on the stock books of the
Corporation.

            (n) The Corporation shall at all times reserve and keep available,
out of its authorized but unissued Common Stock or out of Common Stock held in
its treasury, solely for the purpose of effecting the conversion of the Series E
Stock, the full number of shares of Common Stock deliverable upon the conversion
of all Series E Stock from time to time outstanding. The Corporation shall from
time to time in accordance with the General Corporation Law of the State of
Delaware increase the authorized amount of its Common Stock if at any time the
authorized number of share of Common Stock remaining unissued shall not be
sufficient to permit the conversion of all of the Series E Stock outstanding
from time to time.

            (o) No fractional shares of Common Stock are to be delivered upon
conversion, but the Corporation shall pay a cash adjustment in respect of any
fraction of a share which would otherwise be deliverable in an amount equal to
the same fraction of the current market price per share of Common Stock on the
date of conversion, such current market price to be determined in good faith by
the Board of Directors.

            (p) The Corporation will pay any issue and other taxes (other than
income taxes) that may be payable in respect of any issue or delivery of Common
Stock on conversion of Series E Stock pursuant hereto. The Corporation shall
not, however, be required to pay any tax which may be payable in respect of any
transfer involved in the issue and delivery of stock in a name other than that
in which the shares of Series E Stock so converted were registered, and no such
issue or delivery shall be made unless and until the person requesting such
issue or delivery has paid to the Corporation the amount of any such tax, or has
established, to the satisfaction of the Corporation, that such tax has been
paid.

            (q) Notwithstanding anything to the contrary contained in this
Section 6, in the event that an adjustment pursuant to Sections 6(h), (i), (j)
or (k) could result in the Corporation issuing in excess of an aggregate of Four
Million (4,000,000) shares of Common Stock (as adjusted for stock-splits, stock
dividends, recapitalizations and the like) upon the conversion into shares of
Common Stock of all the Series E Stock and the Series F Stock and the exercise
of all warrants to purchase Common Stock issued in the Offering (a "Complete
Conversion"), then the adjustment in the number of shares of Common Stock into
which the Series E Stock may be converted shall be limited to that number of
shares of Common Stock necessary to limit a Complete Conversion to Four Million
(4,000,000) shares of Common Stock (as adjusted for stock-splits, stock
dividends, recapitalizations and the like).

                                       11
<PAGE>

         7. Notices of Record Date. In the event that the Corporation shall
propose at any time:

            (a) to declare any dividend or distribution upon its Common Stock,
whether in cash, property, stock or other securities, whether or not a regular
cash dividend and whether or not out of earnings or earned surplus;

            (b) to offer for subscription pro rata to the holders of Common
Stock any additional shares of stock of any class or series or other rights;

            (c) to effect any reclassification or recapitalization of its Common
Stock outstanding involving a change in the Common Stock; or

            (d) to merge or consolidate with or into any other corporation, or
sell, lease or convey all or substantially all of its property or business, or
to liquidate, dissolve or wind up;

then, in connection with any such event, the Corporation shall send to the then
holders of record of Series E Stock (the "Record Holders"):

                (i) in the case of the matters referred to in (a) and (b) above,
            at least ten (10) days prior written notice of the date on which a
            record shall be taken for such dividend, distribution or
            subscription rights (and specifying the date on which the holders of
            Common Stock shall be entitled thereto) or for determining rights to
            vote in respect of the matters referred to in (a) or (b) above; and

                (ii) in the case of the matters referred to in (c) and (d), at
            least ten (10) days prior written notice of the date when the same
            shall take place (and specifying the date on which the holders of
            Common Stock shall be entitled to exchange their Common Stock for
            securities or other property deliverable upon the occurrence of such
            event) or for determining rights to vote in respect of the matters
            referred to in (c) or (d) above.

         Each such written notice shall be delivered or given by first class
mail, postage prepaid, addressed to the Record Holders at the address for each
such holder as shown on the books and records of the Corporation.

         IN WITNESS WHEREOF, Mobility Electronics, Inc. has caused hereunto this
certificate to be signed by its Secretary on January 14, 2003.

                                             MOBILITY ELECTRONICS, INC.

                                             By: /s/ Richard F. Dahlson
                                                 Richard F. Dahlson, Secretary

                                       12

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