Document:

EXHIBIT 4.9

         THIS WARRANT AND THE SHARES OF COMMON SHARES ISSUED UPON ITS
      EXERCISE ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN
                          SECTION 4 OF THIS WARRANT

Warrant No. 10                                         Number of Shares: 225,000
                                                        (subject to adjustment)
Date of Issuance: October 15, 1996

                   INTELECT COMMUNICATIONS SYSTEMS LIMITED
                        COMMON SHARES PURCHASE WARRANT
                         (Void after October 15, 2001)

Intelect Communications Systems Limited, a Bermuda Company (the "Company), for
value received, hereby certifies that Alpine Capital Partners, Inc., or its
registered assigns (the "Registered Holder"), is entitled, subject to the terms
set forth below, to purchase from the Company, at any time or from time to time
on or after the date of issuance and on or before October 15, 2001 at not later
than 5:00 p.m. (Boston, Massachusetts time) 225,000 shares of Commons Shares,
$.01 par value per share, of the Company, at an issue price of $7.50 per share.
The shares purchasable upon exercise of this Warrant, and the Purchase Price per
share (defined below), each as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the "Warrant Shares"
and the "Purchase Price," respectively.

1.    EXERCISE.

      (a) This Warrant may be exercised by the Registered Holder, in whole or in
part, by surrendering this Warrant, with the purchase form appended hereto as
EXHIBIT 1 duly executed by such Registered Holder or by such Registered Holder's
duly authorized attorney, at the principal office of the Company, or at such
other office or agency by as the Company may designate, accompanied by payment
in full, in lawful money of the United States, of the Purchase Price payable in
respect of the number of Warrant Shares purchased upon such exercise. For
purposes hereof, the Purchase Price shall be equal to $7.50 per share.

      (b) Each exercise of this Warrant shall be deemed to have been effected
immediately prior to the close of business on the day on which this Warrant
shall have been surrendered to the Company as provided in subsection l(a) above.
At such time, the person or persons whose name or names any certificates for
Warrant Shares shall be issuable upon such exercise as provided in subsection
(c) below shall be deemed to have become the holder or holders of record of the
Warrant Shares represented by such certificates.

      (c) As soon as practicable after the exercise of this Warrant in full or
in part, and in any event within 10 days hereafter, the Company, at its expense,
will cause to be issued in the name of, and delivered to, the Registered Holder,
or as such Holder (upon payment by such Holder of any applicable transfer taxes)
may direct:

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            (i) a certificate or certificates for the number of full Warrant
Shares to which such Registered Holder shall be entitled upon such exercise
plus, in lieu of any fractional share to which such Registered Holder would
otherwise be entitled, cash in an amount determined pursuant to Section 3
hereof; and

            (ii) in case such exercise is in part only, a new warrant or
warrants (dated the date hereof) of like tenor, calling in the aggregate on the
face or faces thereof for the number of Warrant Shares equal (without giving
effect to any adjustment therein) to the number of such shares called for on the
face of this Warrant minus the number of such shares purchased by the Registered
Holder upon such exercise.

2.    ADJUSTMENTS.

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

      (b) If there shall occur any capital reorganization or reclassification of
the Company's Common Shares (other than a change in par value or a subdivision
or combination as provided for in subsection 2(a) above), or any consolidation
or merger of the Company with or into another corporation, or a transfer of all
or substantially all of the assets of the Company, then, as part of any such
reorganization, reclassification, consolidation, merger or sale, as the case may
be, lawful provision shall be made so that the Registered Holder of this Warrant
shall have the right thereafter to receive upon the exercise hereof the kind and
amount of shares of stock or other securities or property which such Registered
Holder would have been entitled to receive if, immediately prior to any such
reorganization, reclassification, consolidation, merger or sale, as the case may
be, such Registered Holder had held the number of shares of Common Shares which
were then purchasable upon the exercise of this Warrant. In any such case,
appropriate adjustment (as reasonably determined in good faith by the Board of
Directors of the Company) shall be made in the application of the provisions set
forth herein with respect to the rights and interests thereafter of the
Registered Holder of this Warrant, such that the provisions set forth in this
Section 2 (including provisions with respect to adjustment of the Purchase
Price) shall thereafter be applicable, as nearly as is reasonably practicable,
in relation to any shares of stock or other securities or proper thereafter
deliverable upon the exercise of this Warrant.

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      (c) When any adjustment is required to be made in the Purchase Price, the
Company shall promptly mail to the Registered Holder a certificate setting forth
the Purchase Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment. Such certificate shall also set for the
kind and amount of stock or other securities or property into which this Warrant
shall be exercisable following the occurrence of any of the events specified in
subsection 2(a) or (b) above.

3.    FRACTIONAL SHARES. The Company shall not be required upon the exercise of
this Warrant to issue any frachona1 shares, but shall make an adjustment
therefor in cash on the basis of the Fair Market Value (defined below) per share
of Common Shares. For purposes hereof, Fair Market Value shall be determined as
follows:

            (i) If the Common Shares are listed on a national securities
exchange, the Nasdaq National Market, the NASDAQ system, or another nationally
recognized exchange or trading system as of the Exercise Date, the Fair Market
Value per share of the Common Shares shall be deemed be the last reported sale
price per share of the Common Shares thereon on the Exercise Date; or, if no
such price s reported on such date, such price on the next preceding business
day (provided that if no such puce reported on the next preceding business day,
the Fair Market Value per share of Common Shares shall be determined pursuant to
clause (ii)).

            (ii) If the Common Shares are not listed on a national securities
exchange, the Nasdaq National Market the NASDAQ system or another nationally
recognized exchange or trading system as of the Exercise Date, the Fair Market
Value per share of the Common Shares shall be deemed to be the amount most
recently determined by the Board of Directors to represent the fair market value
per share of the Common Shares (including without limitation a determination for
purposes of granting Common Shares options or issuing Common Shares under an
employee benefit plan of the Company); and, upon request of the Registered
Holder, the Board of Directors (or a representative thereof) shal1 promptly
notify the Registered Holder of the Fair Market Value per share of Common
Shares. Notwithstanding the foregoing, if the Board of Directors has not made
such a determination within the three-month period prior to the Exercise Date,
then (A) the Fair Market Value per share of Common Shares shall be the amount
next determined by the Board of Directors to represent the fair market value per
share of the Common Shares (including without limitation a determination for
purposes of granting Common Shares options or issuing Common Shares under an
employee benefit plan of the Company), and (B) the Board of Directors shall make
such a determination within 15 days of a request by the Registered Holder that
it do so.

4.    REQUIREMENTS FOR TRANSFER.

      (a) This Warrant and the Warrant Shares shall not be sold or transferred
unless either (i) they first shall have been registered under the Securities Act
of 1933, as amended (the "Act"), or (ii) the Company first shall have been
furnished with an opinion of legal counsel, reasonably satisfactory to the
Company, to the effect that such sale or transfer is exempt from the
registration requirements of the Act.

                                     -3-
<PAGE>
      (b) Notwithstanding the foregoing, no registration or opinion of counsel
shall be required for (i) a transfer by a Registered Holder which is a
partnership to a partner of such partnership or a retired partner of such
partnership who retires after the date hereof, or to the estate of any such
partner or retired partner, if the transferee agrees in writing to be subject to
the terms of this Section 4, or (ii) a transfer made in accordance with Rule 144
under the Act.

      (c) Each certificate representing Warrant Shares shall bear a legend
substantially in the following form:

      "The securities represented by this certificate have not been :registered
      under the Securities Act of 1933, as amended, and may not be offered, sold
      or otherwise transferred, pledged or hypothecated unless and until such
      securities are registered under such Act or an opinion of counsel
      satisfactory to the Company is obtained to the effect that such
      registration is not required."

The foregoing legend shall be removed from the certificates representing any
Warrant Shares, at the request of the holder thereof, at such time as they
become eligible for resale pursuant to Rule 144(k) under the Act.

5.    NO IMPAIRMENT. The Company will not, by amendment of this charter or the
reorganization, consolidation, merger, dissolution, sale of assets or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the holder of this
Warrant against impairment.

6.    NOTICES OF RECORD DATE, ETC.        In case:

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

      (b) of any capital reorganization of the Company, any reclassification of
the capital stock of the Company, any consolidation or merger of the Company
with or into another corporation (other than a consolidation or merger in which
the Company is the surviving entity), or any transfer of all or substantially
all of the assets of the Company; or

      (c) of the voluntary or involuntary dissolution, liquidation or winding up
of the Company, then, and in each such case, the Company will mail or cause to
be mailed to the Registered Holder of this Warrant a notice specifying, as the
case may be, (i) the date on which a record is to be taken for the purpose of
such dividend, distribution or right, and stating the amount and character of
such

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divided distribution or right, or (ii) the effective date on which such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding up is to take place, and the time, if any is to be fixed,
as of which the holders of record of Common Shares (or such other stock or
securities at the time deliverable upon the exercise of this Warrant) shall be
entitled to exchange their shares of Common Shares (or such other stock or
securities) for securities or other property deliverable upon which
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding up. Such notice shall be mailed at least ten (10) days
prior to the record date or effective date for the event specified in such
notice.

7.    RESERVATION OF SHARES. The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such number of Warrant Shares and other stock, securities and property, as from
time to time shall be issuable upon the exercise of this Warrant.

8.    EXCHANGE OF WARRANTS. Upon the surrender by the Registered Holder of any
Warrant or Warrants, properly endorsed, to the Company at the principal office
of the Company, the Company will, subject to the provisions of Section 4 hereof,
issue and deliver to or upon the order of such Holder, at the Company's expense,
a new Warrant or Warrants of like tenor, in the name of such Registered Holder
or such Registered Holder (upon payment by such Registered Holder of any
applicable transfer taxes) may direct, calling in the aggregate on the face or
faces thereof for the number of shares of Common Shares called for on the face
or faces of the Warrant or Warrants so surrendered.

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

10.   TRANSFERS, ETC.

      (a) The Company will maintain a register containing the names and
addresses of the Registered Holders of this Warrant. Any Registered Holder may
change its or his address as shown on the warrant register by writ notice to the
Company requesting such change.

      (b) Subject to the provisions of Section 4 hereof, this Warrant and all
rights hereunder are transferable, in whole or in part, upon surrender of
Warrant with a properly executed assignment (in the form of EXHIBIT II hereto)
at the principal office of the Company.

      (c) Until any transfer of this Warrant is made in the warrant register,
the Company may treat the registered Holder of Warrant as the absolute owner
hereof for all purposes; PROVIDED, HOWEVER, that if and when this Warrant is
properly assigned in blank, the Company may (but shall not

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be obligated to) treat the bearer hereof as the absolute owner hereof for all
purposes, notwithstanding any notice to the contrary.

11.   MAILING OF NOTICES, ETC. All notices and other communications from the
Company to the Registered Holder of this Warrant shall be mailed by first-class
certified or registered mail, postage prepaid, to the address furnished to the
Company in writing by the last Registered Holder of this Warrant who shall have
furnished an address to the Company in writing. All notices and other
communications from the Registered Holder of this Warrant or in connection
herewith to the Company shall be mailed by first-class certified or registered,
postage prepaid, to the Company at its principal office set forth below. If the
Company should at any time change the location of its principal office to a
place other than as set forth below, it shall give prompt written notice to the
Registered Holder of this Warrant and thereafter all references in this Warrant
to the location of its principal office at the particular time shall be as so
specified in such notice.

11.   NO RIGHTS AS SHARESHOLDER. Until the exercise of this Warrant, the
Registered Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a stockholder of the Company.

13.   CHANGE OR WAIVER. Any term of this Warrant may be changed or waived only
by an instrument in writing signed by the party against which enforcement of the
change or waiver is sought.

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

15.   GOVERNING LAW. This Warrant will be governed by and construed in
accordance w the laws of Bermuda.

                                          INTELECT COMMUNICATIONS
                                                SYSTEMS LIMITED

                                          By:    /S/
                                                 -------------------------------

                                          Title: Chief Financial Officer

ATTEST:

/S/
-------------------------------

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<PAGE>
                                   EXHIBIT I

                                 PURCHASE FORM

To: __________________________                 Dated: ________________________

The undersigned, pursuant to the provisions set forth in the attached Warrant
(No. _____), hereby irrevocably elects to purchase ________ Common Shares
covered by such Warrant. The undersigned herewith makes payment of $__________
representing the full purchase price for such shares at the price per share
provided for in such Warrant. Such payment takes the form of $______in lawful
money of the United States.

                                           Signature: ________________________

                                             Address: ________________________

                                                      ________________________

                                                      ________________________
<PAGE>
                                   EXHIBIT II

                                ASSIGNMENT FORM

      FOR VALUE RECEIVED, _____________________________ hereby sells, assigns
and transfers all of the rights of the undersigned under the attached Warrant
(No. _____) with respect to the number of shares of Common Shares covered hereby
set forth below, unto:

NAME OF ASSIGNEE              ADDRESS                            NO. OF SHARES
----------------              -------                            -------------

Dated: ________________________            Signature: ________________________

Dated: ________________________              Witness: ________________________EXHIBIT 4.12

THE SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND, ACCORDINGLY, THE
SECURITIES REPRESENTED BY THIS WARRANT AND THE COMMON STOCK ISSUABLE THEREBY MAY
NOT BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH ANY OTHER
APPLICABLE SECURITIES LAWS.

                                    WARRANT

                          to Purchase Common Stock of

                         INTELECT COMMUNICATIONS, INC.

                         Expiring on December 31, 2000

      This Common Stock Purchase Warrant (the "Warrant") certifies that for
value received, Peter Ianace (the "Holder") is entitled to subscribe for and
purchase from the Company (as hereinafter defined), in whole or in part, 115,000
shares of duly authorized, validly issued, fully paid and nonassessable shares
of Common Stock (as hereinafter defined) at the Exercise Price (as hereinafter
defined), subject, however, to the provisions and upon the terms and conditions
hereinafter set forth. This Warrant and all rights hereunder shall expire at
5:00 p.m., Houston, Texas time, on December 31, 2000.

      As used herein, the following terms shall have the meanings set forth
below:

      "COMPANY" shall mean Intelect Communications, Inc., a Delaware
corporation, and shall also include any successor thereto with respect to the
obligations hereunder, by merger, consolidation or otherwise.

      "COMMON STOCK" shall mean and include the Company's Common Stock, par
value $0.01 per share, authorized on the date of the original issue of this
Warrant.

      "EXERCISE PRICE" shall mean $3.00 per share of Common Stock payable upon
exercise of the Warrant, as adjusted pursuant to the provisions hereof.

      "WARRANT SHARES" shall mean the shares of Common Stock purchased or
purchasable by the holder hereof upon the exercise of the Warrant.

                                    ARTICLE I

                               EXERCISE OF WARRANT

      1.1 METHOD OF EXERCISE. The Warrant represented hereby may be exercised by
the Holder hereof, in whole or in part, at any time and from time to time on or
after the date hereof until 5:00 p.m., Houston, Texas time, on December 31,
2000. To exercise the Warrant, the Holder hereof shall deliver to the Company
(i) a written notice in the form of the Subscription Notice attached as an
exhibit hereto, stating therein the election of such Holder to exercise the
Warrant in the manner provided in the Subscription Notice; and
<PAGE>
(ii) payment in full of the Exercise Price in cash or by bank check for all
Warrant Shares purchased hereunder. The Warrant shall be deemed to be exercised
on the date of receipt by the Company of the Subscription Notice, accompanied by
payment for the Warrant Shares and surrender of this Warrant, as aforesaid, and
such date is referred to herein as the "Exercise Date". Upon such exercise, the
Company shall, as promptly as practicable and in any event within ten (10)
business days, issue and deliver to such Holder a certificate or certificates
for the full number of the Warrant Shares purchased by such Holder hereunder,
and shall, unless the Warrant has expired or has been redeemed, deliver to the
Holder hereof a new Warrant representing the portion, if any, that shall not
have been exercised, in all other respects identical to this Warrant. As
permitted by applicable law, the Person in whose name the certificates for
Common Stock are to be issued shall be deemed to have become a holder of record
of such Common Stock on the Exercise Date and shall be entitled to all of the
benefits of such holder on the Exercise Date, including without limitation the
right to receive dividends and other distributions for which the record date
falls on or after the Exercise Date and to exercise voting rights.

      1.2 RESERVATION OF SHARES. Beginning at such time as this Warrant is
exercisable, the Company shall reserve at all times so long as the Warrant
remains outstanding, free from preemptive rights, out of its treasury Common
Stock or its authorized but unissued shares of Common Stock, or both, solely for
the purpose of effecting the exercise of the Warrant, a sufficient number of
shares of Common Stock to provide for the exercise of the Warrant.

      1.3 VALID ISSUANCE. All shares of Common Stock that may be issued upon
exercise of the Warrants will, upon issuance by the Company, be duly and validly
issued, fully paid and nonassessable and free from all taxes, liens and charges
with respect to the issuance thereof.

      1.4 NO FRACTIONAL SHARES. The Company shall not be required to issue
fractional shares of Common Stock on the exercise of this Warrant. If any
fraction of a share of Common Stock would be issuable on the exercise of this
Warrant, the Company shall pay an amount in cash calculated by it to be equal to
the Market Price of one share of Common Stock at the time of such exercise
multiplied by such fraction computed to the nearest whole cent.

                                  ARTICLE II

                                   TRANSFER

      2.1 OWNERSHIP OF WARRANT. The Company may deem and treat the person in
whose name the Warrant is registered as the Holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary unless agreed to in writing by the Company.

      2.2 RESTRICTIONS ON TRANSFER OF WARRANTS. The Holder of the Warrant agrees
that the Warrant is not transferrable without the prior written consent of the
Company and any such transfer without such consent shall be void and without
effect. Subject to the restrictions on transfer of the Warrant in this Section
2.2, the Company, from time to time, shall register the transfer of the Warrant
in such books upon surrender of this Warrant at the Company's principal office,
properly endorsed or accompanied by appropriate instruments of transfer and
written instructions for transfer satisfactory to the Company. Upon any such
transfer and upon payment by the Holder or its transferee of any applicable
transfer taxes, a new Warrant shall be issued to the transferee and the
transferor (as their respective interests may appear) and the surrendered
Warrant shall be

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canceled by the Company. The Holder shall pay all taxes and all other expenses
and charges payable in connection with the transfer of the Warrant pursuant to
this Section 2.2.

      2.3 COMPLIANCE WITH SECURITIES LAWS. Notwithstanding any other provisions
contained in this Warrant, the Holder hereof understands and agrees that the
following restrictions and limitations shall be applicable to all Warrant Shares
and to all resales or other transfers thereof pursuant to the Securities Act,
and that as a condition to the exercise of such warrant that the following are
and will be true and correct:

            (A) The Holder hereof agrees that the Warrant Shares shall not be
      sold or otherwise transferred unless the Warrant Shares are registered
      under the Securities Act and applicable state securities or blue sky laws
      or are exempt therefrom.

            (B) A legend in substantially the following form will be placed on
      the certificate(s) evidencing the Warrant Shares:

                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
            "SECURITIES ACT"), OR ANY OTHER APPLICABLE SECURITIES LAW AND,
            ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT
            BE RESOLD, PLEDGED, OR OTHERWISE TRANSFERRED, EXCEPT PURSUANT TO AN
            EFFECTIVE REGISTRATION STATEMENT UNDER, OR IN A TRANSACTION EXEMPT
            FROM REGISTRATION UNDER, THE SECURITIES ACT AND IN ACCORDANCE WITH
            ANY OTHER APPLICABLE SECURITIES LAWS."

            (C) Stop transfer instructions will be imposed with respect to the
      Warrant Shares so as to restrict resale or other transfer thereof, subject
      to this Section 2.3.

            (D) The Holder is an "accredited investor" within the meaning of
      Rule 501 of Regulation D as promulgated under the Securities Act of 1933,
      and will be so as a condition of purchasing any of the Warrant Shares. The
      Holder will acquire the Warrant Shares for its own account for investment
      purposes and not with a view towards distribution. The Holder must bear
      the economic risk of the investment for an indefinite period of time
      because the Warrant Shares have not been registered under the Securities
      Act and therefore cannot be sold unless they are subsequently registered
      under the Securities Act or an exemption from such registration is
      available. The Holder has received and carefully reviewed copies of all
      documents filed by the Company as of the time of each exercise with the
      Securities and Exchange Commission. No representations or warranties have
      been made to the Holder by the Company, the officers or directors of the
      Company, or any agent, employee or affiliate of any of them. The Holder is
      aware that the purchase of the Warrant Shares involves a high degree of
      risk and that it may sustain, and has the financial ability to sustain,
      the loss of its entire investment. The Holder has had the opportunity to
      ask questions of, and receive answers, satisfactory to it from the
      Company's management regarding the Company. The Holder understands that no
      Federal or State governmental authority has made any finding or
      determination relating to the fairness of an investment in the Warrant
      Shares and that no Federal or State governmental authority has recommended
      or endorsed, or will recommend or endorse, the investment herein. The
      Holder, in making the decision to purchase the Warrant Shares subscribed
      for, has relied upon independent investigations made by it and has not
      relied on any information or representations made by third parties. The
      Holder has significant assets, and upon consummation of the purchase of
      the Warrant

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<PAGE>
      Shares, will continue to have significant assets exclusive of the Warrant
      Shares. The Holder understands that the Warrant Shares are being offered
      and sold to it in reliance on specific provisions of Federal and State
      securities laws and that the Company is relying upon the truth and
      accuracy of the representations, warranties, agreements, acknowledgments
      and understandings of the Holder set forth herein in order to determine
      the applicability of such provisions. The Holder, in making the decision
      to purchase the Warrant Shares subscribed for, has relied upon independent
      investigations made by it and has not relied on any information or
      representations made by third parties.

                                  ARTICLE III

                                 ANTI-DILUTION

      3.1 ANTI-DILUTION PROVISIONS. If the outstanding shares of the Company's
Common Stock shall be subdivided into a greater number of shares or a dividend
in Common Stock shall be paid in respect of Common Stock, the Exercise Price in
effect immediately prior to such subdivision or at the record date of such
dividend shall simultaneously with the effectiveness of such subdivision or
immediately after the record date of such dividend be proportionately reduced.
If outstanding shares of Common Stock shall be combined into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination
shall, simultaneously with the effectiveness of such combination, be
proportionately increased. When any adjustment is required to be made in the
Exercise Price, the number of Warrant Shares purchasable upon the exercise of
this Warrant shall be changed to the number determined by dividing (i) an amount
equal to the number of shares issuable upon the exercise of this Warrant
immediately prior to such adjustment, multiplied by the Exercise Price in effect
immediately in effect prior to such adjustment, by (ii) the Exercise Price in
effect immediately after such adjustment.

      3.2 REORGANIZATIONS AND ASSET SALES. If any capital reorganization or
reclassification of the capital stock of the Company, or any consolidation,
merger or share exchange of the Company with another Person, or the sale,
transfer or other disposition of all or substantially all of its assets to
another Person shall be effected in such a way that a holder of Common Stock of
the Company shall be entitled to receive capital stock, securities or assets
with respect to or in exchange for their shares, then as part of any such
reorganization, reclassification, consolidation, merger or sale, as the case may
be, lawful provision shall be made so that the Holder of this Warrant shall have
the right thereafter to receive upon exercise hereof the kind and amount of
share of stock or other securities or property which such holder would have been
entitled to receive if, immediately prior to any such reorganization,
reclassification, consolidation, merger or sale, as the case may be, such holder
had held the number of shares of Common Stock which were the purchasable upon
the exercise of this Warrant. In any such case, appropriate adjustment (as
reasonably determined in good faith by the Board of Directors of the Company)
shall be made in the application of the provisions set forth herein with respect
to the rights and interests thereafter of the Holder of this Warrant, such that
the provisions set forth herein (including provisions with respect to adjustment
of the Exercise Price) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.

      3.3 NOTICE OF ADJUSTMENT. Whenever the Exercise Price or the number of
Warrant Shares issuable upon the exercise of the Warrant shall be adjusted as
herein provided, or the rights of the Holder hereof shall change by reason of
other events specified herein, the Company shall compute the adjusted Exercise
Price and the adjusted number of Warrant Shares in accordance with the
provisions hereof and shall prepare a notice setting forth the adjusted Exercise
Price and the adjusted number of Warrant Shares issuable upon the exercise of
the Warrant or specifying the other shares of stock, securities or assets
receivable as a

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<PAGE>
result of such change in rights, and showing in reasonable detail the facts and
calculations upon which such adjustments or other changes are based. The Company
shall cause to be mailed to the Holder hereof copies of such notice stating that
the Exercise Price and the number of Warrant Shares purchasable upon exercise of
the Warrant have been adjusted and setting forth the adjusted Exercise Price and
the adjusted number of Warrant Shares purchasable upon the exercise of the
Warrant.

                                  ARTICLE IV

                                 MISCELLANEOUS

      4.1 ENTIRE AGREEMENT. This Warrant, together with the Agreement, contain
the entire agreement between the Holder hereof and the Company with respect to
the Warrant Shares purchasable upon exercise hereof and the related transactions
and supersedes all prior arrangements or understandings with respect thereto.

      4.2 GOVERNING LAW; VENUE. This warrant shall be governed by and construed
in accordance with the laws of the State of Texas. Venue for any dispute arising
under this Warrant shall lie in the state or federal courts of Dallas County,
Texas.

      4.3 WAIVER AND AMENDMENT. Any term or provision of this Warrant may be
waived at any time by the party which is entitled to the benefits thereof and
any term or provision of this Warrant may be amended or supplemented at any time
by agreement of the Holder hereof and the Company, except that any waiver of any
term or condition, or any amendment or supplementation, of this Warrant shall be
in writing. A waiver of any breach or failure to enforce any of the terms or
conditions of this Warrant shall not in any way effect, limit or waive a party's
rights hereunder at any time to enforce strict compliance thereafter with every
term or condition of this Warrant.

      4.4 ILLEGALITY. In the event that any one or more of the provisions
contained in this Warrant shall be determined to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the
benefit of the provision exists, be in any way impaired.

      4.5 COPY OF WARRANT. A copy of this Warrant shall be filed among the
records of the Company.

      4.6 NOTICE. Any notice or other document required or permitted to be given
or delivered to the Holder or the Company hereof shall be in writing and will
deemed to have been delivered: (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile (provided a confirmation of transmission is
mechanically generated and kept on file by the sending party); or (iii) one (1)
day after deposit with a nationally recognized overnight delivery service, in
each case properly addressed to the party to receive the same. The addresses and
facsimile numbers for such communications shall be: any notice or other document
required or permitted to be given or delivered to the Company shall be sent to
the offices of the Company at 1100 Executive Drive, Richardson, Texas 75081,
Attn: Chief Executive Officer, Telecopy No. (972) 367-2271 or such other address
as shall have been furnished in writing by the Company to the Holder of this
Warrant. Any notice sent or required to be sent hereunder to the Holder shall be
sent to the address of the Holder as contained in the corporate records of the
Company or such other address as shall have been furnished in writing by the
Holder to the Company.

                                       5
<PAGE>
      4.7 LIMITATION OF LIABILITY; NOT STOCKHOLDERS. No provision of this
Warrant shall be construed as conferring upon the Holder hereof the right to
vote, consent, receive dividends or receive notices (other than as herein
expressly provided) in respect of meetings of stockholders for the election of
directors of the Company or any other matter whatsoever as a stockholder of the
Company. No provision hereof, in the absence of affirmative action by the Holder
hereof to purchase shares of Common Stock, and no mere enumeration herein of the
rights or privileges of the Holder hereof, shall give rise to any liability of
such Holder for the purchase price of any shares of Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

      4.8 EXCHANGE, LOSS, DESTRUCTION, ETC. OF WARRANT. Upon receipt of evidence
satisfactory to the Company of the loss, theft, mutilation or destruction of
this Warrant, and in the case of any such loss, theft or destruction upon
delivery of a bond of indemnity or such other security in such form and amount
as shall be reasonably satisfactory to the Company, or in the event of such
mutilation upon surrender and cancellation of this Warrant, the Company will
make and deliver a new Warrant of like tenor, in lieu of such lost, stolen,
destroyed or mutilated Warrant. Any Warrant issued under the provisions of this
Section 4.8 in lieu of any Warrant alleged to be lost, destroyed or stolen, or
in lieu of any mutilated Warrant, shall constitute an original contractual
obligation on the part of the Company. This Warrant shall be promptly canceled
by the Company upon the surrender hereof in connection with any exchange or
replacement. The Company shall pay all taxes (other than securities transfer
taxes or income taxes) and all other expenses and charges payable in connection
with the preparation, execution and delivery of Warrants pursuant to this
Section 4.8.

      4.9 HEADINGS. The Article and Section and other headings herein are for
convenience only and are not a part of this Warrant and shall not affect the
interpretation thereof.

                                       6
<PAGE>
      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name.

Dated: February 10, 2000

                                    INTELECT COMMUNICATIONS, INC.

                                    By: /S/ HERMAN M. FRIETSCH
                                    Name:   Herman M. Frietsch
                                    Title:  Chairman and Chief Executive Officer

                                       7
<PAGE>
                              SUBSCRIPTION NOTICE

      The undersigned, the holder of the foregoing Warrant, hereby elects to
exercise purchase rights represented thereby for and to purchase thereunder,
________ shares of the Common Stock covered by such Warrant, and herewith makes
payment in full for such shares pursuant to Section 1.1 of such Warrant, and
requests (a) that certificates for such shares (and any other securities or
other property issuable upon such exercise) be issued in the name of, and
delivered to _____________________________________ and (b), if such shares shall
not include all of the shares issuable as provided in such Warrant, that a new
Warrant of like tenor and date for the balance of the shares issuable thereunder
be delivered to the undersigned.

                                         _______________________________________

Date:___________________________

                                       8
<PAGE>
                                  ASSIGNMENT

      For value received, _______________________, hereby sells, assigns, and
transfers unto _________________________ the within Warrant, together with all
right, title and interest therein, and does hereby irrevocably constitute and
appoint ________________________ attorney, to transfer such Warrant on the books
of the Company, with full power of substitution.

                                         _______________________________________

Date:___________________________

                                       9

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