Document:

EXHIBIT 4.1

THIS WARRANT AND ANY SECURITIES  ACQUIRED UPON EXERCISE OF THIS WARRANT HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES
LAWS OF ANY STATE AND MAY NOT BE SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED  OF
EXCEPT  PURSUANT  TO AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH ACT AND
APPLICABLE STATE  SECURITIES LAWS OR PURSUANT TO AN APPLICABLE  EXEMPTION TO THE
REGISTRATION  REQUIREMENTS  OF SUCH ACT AND SUCH  LAWS.  THIS  WARRANT  AND SUCH
SECURITIES  MAY NOT BE SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED  OF EXCEPT IN
COMPLIANCE WITH THE CONDITIONS  SPECIFIED IN THIS WARRANT,  COPIES OF WHICH WILL
BE MADE AVAILABLE UPON REQUEST.

                        GENERAL DATACOMM INDUSTRIES, INC.

                          COMMON STOCK PURCHASE WARRANT

No. D-4                                                           April 20, 2006

                                                             Warrant to Purchase
                                                          Shares of Common Stock

      GENERAL   DATACOMM   INDUSTRIES,   INC.,  a  Delaware   corporation   (the
"Corporation"),  for value received,  hereby certifies that HOWARD S. MODLIN, or
his  registered  assigns  (the  "Holder"),  is  entitled  to  purchase  from the
Corporation Nine Hundred Nine Thousand Ninety (909,090) (the "Warrant Quantity")
duly authorized,  validly issued,  fully paid and nonassessable shares of Common
Stock, par value $0.01 per share, of the Corporation (the "Common Stock"),  at a
purchase price of $0.275 per share (the "Warrant"),  at any time or from time to
time on and after the date hereof but prior to 5:00 P.M., New York City time, on
April 19, 2013 (the  "Expiration  Date"),  subject to the terms,  conditions and
adjustments set forth below in this Warrant.

      1. DEFINITIONS. As used herein, unless the context otherwise requires, the
following terms shall have the meanings indicated:

      "Business Day" shall mean any day other than a Saturday or a Sunday or any
day on which  national  banks are  authorized  or required by law to close.  Any
reference to "days"  (unless  Business Days are  specified)  shall mean calendar
days.

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      "Common Stock" shall have the meaning  assigned to it in the  introduction
to this  Warrant,  such term to include any stock into which such  Common  Stock
shall have been changed or any stock resulting from any reclassification of such
Common Stock

      "Corporation" shall have the meaning assigned to it in the introduction to
this Warrant,  such term to include any  corporation or other entity which shall
succeed to or assume the obligations of the Corporation  hereunder in compliance
with Section 4.

      "Current  Market  Price" shall mean,  on any date  specified  herein,  the
average  of the daily  Market  Price  during  the 10  consecutive  trading  days
commencing  15 trading days before such date,  except that,  if on any such date
the  shares  of Common  Stock are not  listed or  admitted  for  trading  on any
national  securities  exchange  or quoted in the  over-the-counter  market,  the
Current Market Price shall be the Market Price on such date.

      "Exchange Act" shall mean the Securities  Exchange Act of 1934, as amended
from time to time, and the rules and  regulations  thereunder,  or any successor
statute.

      "Expiration   Date"  shall  have  the  meaning   assigned  to  it  in  the
introduction to this Warrant.

      "Fair Value" shall mean, on any date  specified  herein (i) in the case of
cash,  the dollar amount  thereof,  (ii) in the case of a security,  the Current
Market Price, and (iii) in all other cases, the fair value thereof (as of a date
which is within 20 days of the date as of which the determination is to be made)
determined jointly by the Corporation and the Holder; provided, however, that if
such parties are unable to reach agreement  within a reasonable  period of time,
the Fair Value shall be determined in good faith,  by an independent  investment
banking  firm  selected  jointly by the  Corporation  and the Holder or, if that
selection cannot be made within ten days, by an independent  investment  banking
firm selected by the American  Arbitration  Association  in accordance  with its
rules, and provided further,  that the Corporation shall pay all of the fees and
expenses of any third parties  incurred in connection with  determining the Fair
Value.

      "Holder" shall have the meaning assigned to it in the introduction to this
Warrant.

      "Market  Price" shall mean, on any date specified  herein,  the amount per
share of the Common  Stock,  equal to (i) the last  reported  sale price of such
Common Stock,  regular way, on such date or, in case no such sale takes place on
such date, the average of the closing bid and asked prices  thereof  regular way
on such date,  in either case as officially  reported on the principal  national
securities  exchange on which such Common  Stock is then listed or admitted  for
trading, (ii) if such Common Stock is not then listed or admitted for trading on
any national  securities  exchange but is designated as a national market system
security by the NASD,  the last  reported  trading  price of the Common Stock on
such  date,  (iii) if there  shall  have been no  trading on such date or if the
Common  Stock is not so  designated,  the  average of the  closing bid and asked
prices of the Common Stock on such date as shown by the NASD automated quotation
system,  or (iv) if such Common Stock is not then listed or admitted for trading
on any  national  exchange or quoted in the  over-the-counter  market,  the fair
value  thereof (as of a date which is within 20 days of the date as of which the
determination  is to be made)  determined  jointly  by the  Corporation  and the
Holder; provided,  however, if such parties are unable to reach agreement within
a reasonable period of time, the fair value shall be determined in good faith by
an independent  investment  banking firm selected jointly by the Corporation and
the  Holder  or,  if that  selection  cannot  be made  within  ten  days,  by an
independent  investment  banking  firm  selected  by  the  American  Arbitration
Association  in  accordance  with its  rules,  and  provided  further,  that the
Corporation shall pay all of the fees and expenses of any third parties incurred
in connection with determining the Market Price.

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      "NASD" shall mean the National Association of Securities Dealers, Inc.

      "Other  Securities"  shall mean any stock  (other than  Common  Stock) and
other securities of the Corporation or any other Person (corporate or otherwise)
which the holders of this  Warrant at any time shall be entitled to receive,  or
shall  have  received,  upon  the  exercise  of this  Warrant,  in lieu of or in
addition to Common  Stock,  or which at any time shall be issuable or shall have
been  issued  in  exchange  for or in  replacement  of  Common  Stock  or  Other
Securities pursuant to Section 4 or otherwise.

      "Partial  Exercise"  shall mean any exercise of this Warrant for less than
the Warrant Quantity on the date of such exercise.

      "Person" shall mean any individual, firm, partnership, corporation, trust,
joint venture,  association,  joint stock company,  limited  liability  company,
unincorporated  organization  or any other entity or  organization,  including a
government  or agency or political  subdivision  thereof,  and shall include any
successor (by merger or otherwise) of such entity.

      "Purchase Price" shall mean $0.275 per share.

      "Restricted Securities" shall mean (i) any warrants bearing the applicable
legend set forth in  Section  10.1,  (ii) any  shares of Common  Stock (or Other
Securities)  issued or issuable upon the exercise of this Warrant which are (or,
upon issuance,  will be) evidenced by a certificate or certificates  bearing the
applicable  legend  set forth in such  Section,  and (iii) any  shares of Common
Stock (or Other Securities) issued subsequent to the exercise of this Warrant as
a  dividend  or  other  distribution  with  respect  to,  or  resulting  from  a
subdivision of the outstanding shares of Common Stock (or Other Securities) into
a greater number of shares by reclassification, stock splits or otherwise, or in
exchange for or in replacement of the Common Stock (or Other Securities)  issued
upon such exercise, which are evidenced by a certificate or certificates bearing
the applicable legend set forth in such Section.

      "Securities  Act" shall mean the  Securities  Act of 1933, as amended from
time to  time,  and the  rules  and  regulations  thereunder,  or any  successor
statute.

      "Warrant"  shall have the meaning  assigned to it in the  introduction  to
this Warrant.

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      "Warrant   Quantity"  shall  have  the  meaning  assigned  to  it  in  the
introduction to this Warrant.

      2. EXERCISE OF WARRANT.

      2.1.  Manner of Exercise;  Payment of the Purchase  Price;  Adjustment for
Partial  Exercise.  (a) This Warrant may be exercised by the Holder  hereof,  in
whole or in part, at any time or from time to time through the Expiration  Date,
by surrendering to the  Corporation at its principal  office this Warrant,  with
the form of  Election  to  Purchase  Shares  attached  hereto as Exhibit A (or a
reasonable  facsimile  thereof) duly executed by the Holder and  accompanied  by
payment of the Purchase Price for the number of shares of Common Stock specified
in such form.

      (b)  Payment  of the  Purchase  Price  may be made as  follows  (or by any
combination of the following): (i) in United States currency by cash or delivery
of a certified check or bank draft payable to the order of the Corporation or by
wire transfer to the  Corporation,  (ii) by  cancellation  of such number of the
shares of Common Stock  otherwise  issuable to the Holder upon such  exercise as
shall be specified in such Election to Purchase Shares,  such that the excess of
the aggregate  Current  Market Price of such  specified  number of shares on the
date of exercise  over the portion of the Purchase  Price  attributable  to such
shares shall equal the Purchase Price attributable to the shares of Common Stock
to be issued upon such  exercise,  in which case such amount  shall be deemed to
have been paid to the  Corporation  and the number of shares  issuable upon such
exercise shall be reduced by such specified number, or (iii) by surrender to the
Corporation for cancellation certificates representing shares of Common Stock of
the Corporation  owned by the Holder  (properly  endorsed for transfer in blank)
having a  Current  Market  Price on the date of  Warrant  exercise  equal to the
Purchase Price.

      (c) In the event of any  Partial  Exercise  of this  Warrant,  the Warrant
Quantity  shall be reduced,  effective as of the effective  date of such Partial
Exercise,  by such  number of shares of  Common  Stock  equal to the  difference
between (i) the Warrant  Quantity on the date of such Partial  Exercise and (ii)
the number of shares of Common Stock, purchased by the Holder in connection with
such Partial Exercise.

      2.2.  When  Exercise  Effective.  Each  exercise of this Warrant  shall be
deemed to have been effected  immediately  prior to the close of business on the
Business  Day on which  this  Warrant  shall have been  surrendered  to, and the
Purchase  Price  shall have been  received  by, the  Corporation  as provided in
Section  2.1,  and at such time the Person or Persons in whose name or names any
certificate  or  certificates  for shares of Common Stock (or Other  Securities)
shall be issuable  upon such exercise as provided in Section 2.3 shall be deemed
to have become the holder or holders of record thereof for all purposes.

      2.3. Delivery of Stock Certificates,  etc.;  Charges,  Taxes and Expenses.
(a) As soon as practicable  after each exercise of this Warrant,  in whole or in
part, and in any event within five (5) Business Days thereafter, the Corporation
shall cause to be issued in the name of and  delivered to the Holder  hereof or,
subject to Section 10, as the Holder may direct,

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<PAGE>

            (i) a certificate or certificates for the number of shares of Common
      Stock (or Other  Securities)  to which the Holder  shall be entitled  upon
      such exercise plus, in lieu of issuance of any  fractional  share to which
      the Holder would otherwise be entitled,  if any, a check for the amount of
      cash equal to the same fraction multiplied by the Current Market Price per
      share on the date of Warrant exercise, and

            (ii) in case such exercise is a Partial  Exercise,  a new Warrant or
      Warrants  of like  tenor,  for the  balance of the  Warrant  Quantity,  as
      adjusted pursuant to Section 2.1(c).

      (b) Issuance of certificates  for shares of Common Stock upon the exercise
of this Warrant shall be made without  charge to the Holder hereof for any issue
or other incidental  expense,  in respect of the issuance of such  certificates,
all of which such taxes and expenses shall be paid by the Corporation.

      2.4.  Corporation to Reaffirm  Obligations.  The Corporation shall, at the
time of each  exercise of this Warrant,  upon the request of the Holder  hereof,
acknowledge  in writing its  continuing  obligation to afford to such Holder all
rights to which such Holder shall continue to be entitled after such exercise in
accordance  with the terms of this Warrant,  provided that if the Holder of this
Warrant shall fail to make any such  request,  such failure shall not affect the
continuing obligation of the Corporation to afford such rights to the Holder.

      3. DIVIDENDS AND DISTRIBUTIONS.

      3.1.  General;  Warrant  Quantity.  This  Warrant  evidences  the right to
purchase  a number  of shares of Common  Stock  equal to the  Warrant  Quantity,
subject to adjustment as provided in Section 2.1(c).

      3.2. Extraordinary Dividends and Distributions. In case the Corporation at
any time or from time to time after the date hereof shall declare, order, pay or
make a dividend or other distribution  (including,  without limitation,  (i) any
distribution of other or additional  stock, (ii) other securities or property or
(iii) rights, options or warrants to subscribe for purchase or otherwise acquire
either shares of Common Stock or securities convertible into or exchangeable for
shares  of Common  Stock,  by way of  dividend  or  spin-off,  reclassification,
recapitalization  or similar corporate  rearrangement) on the Common Stock other
than (a) a dividend payable in shares of Common Stock,  then, in each such case,
the  Corporation  shall  make  proper  provision  to pay to the  Holder  of this
Warrant,  at the  time  of  the  exercise  of  this  Warrant  such  dividend  or
distribution  paid to the holders of the Common  Stock,  an amount  equal to the
product of (i) the Warrant  Quantity and (ii) the Fair Value of such dividend or
distribution,  at the time of such dividend or  distribution,  applicable to one
share of Common Stock.

      4. CONSOLIDATION, MERGER, ETC.

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      4.1.   Adjustments   for   Consolidation,    Merger,   Sale   of   Assets,
Reorganization,  etc.  In case the  Corporation  after the date hereof (a) shall
consolidate  with or merge into any other Person and shall not be the continuing
or surviving  corporation of such  consolidation or merger, (b) shall permit any
other  Person  to  consolidate  with  or  merge  into  the  Corporation  and the
Corporation  shall be the continuing or surviving Person but, in connection with
such  consolidation  or merger,  the Common Stock or Other  Securities  shall be
changed into or exchanged  for stock or other  securities of any other Person or
cash or any other property,  (c) shall transfer all or substantially  all of its
properties  or  assets  to any  other  Person,  or (d)  shall  effect a  capital
reorganization  or  reclassification  of the Common  Stock or Other  Securities,
then, and in the case of each such  transaction,  proper provision shall be made
so that,  upon the  basis  and the  terms  and in the  manner  provided  in this
Warrant, the Holder of this Warrant,  upon the exercise hereof at any time after
the  consummation  of such  transaction,  shall be  entitled  to receive (at the
aggregate  Purchase  Price in  effect at the time of such  consummation  for all
Common Stock or Other Securities  issuable upon such exercise  immediately prior
to such consummation),  in lieu of the Common Stock or Other Securities issuable
upon such exercise prior to such consummation, the highest amount of securities,
cash or other property to which such Holder would actually have been entitled as
a stockholder  upon such  consummation if such Holder had exercised this Warrant
immediately   prior  thereto,   subject  to  adjustments   (subsequent  to  such
consummation) as nearly  equivalent as possible to the adjustments  provided for
in this  Warrant.  If  additional  shares  of  Common  Stock  are  issued by the
Corporation  pursuant to a stock split or stock  dividend in excess of 5% in any
one fiscal year of the  Corporation,  the number of shares of Common  Stock then
issuable on exercise shall be increased  proportionately with no increase in the
total purchase price of the shares of Common Stock then covered  herein.  In the
event that the shares of Common Stock of the Corporation are reduced at any time
by a combination  of shares,  the number of shares of Common Stock then issuable
on exercise  herein  shall be reduced  proportionately  with no reduction in the
total purchase price of the shares of Common Stock then covered herein.

      4.2. Assumption of Obligations. Notwithstanding anything contained in this
Warrant  to  the  contrary,   the  Corporation  shall  not  effect  any  of  the
transactions  described in clauses (a) through (d) of Section 4.1 unless,  prior
to the consummation  thereof, each Person (other than the Corporation) which may
be required to deliver any stock, securities, cash or property upon the exercise
of this Warrant as provided herein shall assume, by written instrument delivered
to,  and  reasonably  satisfactory  to,  the  Holder  of this  Warrant,  (a) the
obligations of the Corporation  under this Warrant (and if the Corporation shall
survive  the  consummation  of such  transaction,  such  assumption  shall be in
addition  to,  and  shall not  release  the  Corporation  from,  any  continuing
obligations of the  Corporation  under this Warrant),  and (b) the obligation to
deliver to the Holder such shares of stock, securities,  cash or property as, in
accordance  with the  foregoing  provisions of this Section 4, the Holder may be
entitled to receive and such Person shall have similarly delivered to the Holder
an  opinion  of counsel  for such  Person,  which  counsel  shall be  reasonably
satisfactory to the Holder,  stating that this Warrant shall thereafter continue
in full force and effect and the terms hereof  (including,  without  limitation,
all of the  provisions  of this  Section  4) shall be  applicable  to the stock,
securities,  cash or property  which such Person may be required to deliver upon
any exercise of this Warrant or the exercise of any rights pursuant hereto.

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      5. OTHER DILUTIVE  EVENTS.  In case any event shall occur as to which, the
provisions  of Section 3 or Section 4 hereof are not strictly  applicable  or if
strictly  applicable  would not fairly protect the purchase rights of the Holder
in accordance with the essential  intent and principles of such Sections,  then,
in each such  case,  the Board of  Directors  of the  Corporation  shall make an
adjustment  in the  application  of such  provisions,  in  accordance  with such
essential  intent and  principles,  so as to  preserve,  without  dilution,  the
purchase rights represented by this Warrant.

      6. NO DILUTION OR IMPAIRMENT.  The Corporation  shall not, by amendment of
its  certificate  of  incorporation  or  through  any   consolidation,   merger,
reorganization,  transfer of assets, dissolution, issue or sale of securities 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  dilution  or  other  impairment.  Without  limiting  the
generality of the foregoing,  the Corporation (a) shall not permit the par value
of any shares of stock  receivable  upon the  exercise of this Warrant to exceed
the amount payable  therefor upon such exercise,  (b) shall take all such action
as may be necessary or appropriate in order that the Corporation may validly and
legally issue fully paid and nonassessable shares of stock, free from all taxes,
liens,  security interests,  encumbrances,  preemptive rights and charges on the
exercise of this Warrant from time to time  outstanding,  (c) shall not take any
action  which  results in any  adjustment  of the Warrant  Quantity if the total
number of shares of Common Stock (or Other Securities) issuable after the action
upon the exercise of all of this Warrant would exceed the total number of shares
of Common  Stock (or Other  Securities)  then  authorized  by the  Corporation's
certificate  of  incorporation  and available for the purpose of issue upon such
exercise,  and (d)  shall  not issue  any  capital  stock of any class  which is
preferred as to dividends or as to the  distribution of assets upon voluntary or
involuntary  dissolution,  liquidation  or winding up,  unless the rights of the
holders  thereof shall be limited to a fixed sum or percentage of par value or a
sum determined by reference to a formula based on a published  index of interest
rates,  an interest  rate  publicly  announced by a financial  institution  or a
similar indicator of interest rates in respect of participation in dividends and
to a fixed sum or percentage of par value in any such distribution of assets.

      7. NOTICES OF CORPORATE ACTION. In the event of:

      (a) any taking by the  Corporation of a record of the holders of any class
of  securities  for the  purpose of  determining  the  holders  thereof  who are
entitled  to  receive  any  dividend  or  other  distribution,  or any  right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, or

      (b) any capital reorganization of the Corporation, any reclassification or
recapitalization  of the capital stock of the Corporation,  any consolidation or
merger involving the Corporation and any other Person, any transaction or series
of  transactions  by the  Corporation  in  which  more  than  50% of the  voting
securities  of  the  Corporation  are  transferred  to  another  Person,  or any
transfer,  sale or other  disposition of all or substantially  all the assets of
the Corporation to any other Person, or

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      (c) any voluntary or involuntary dissolution, liquidation or winding-up of
the Corporation, the Corporation shall mail to each holder of a Warrant a notice
specifying (i) the date or expected date on which any such record is to be taken
for the  purpose of such  dividend,  distribution  or right,  and the amount and
character of such dividend, distribution or right, and (ii) the date or expected
date on  which  any  such  reorganization,  reclassification,  recapitalization,
consolidation, merger, transfer, sale, disposition,  dissolution, liquidation or
winding-up is to take place and the time, if any such time is to be fixed, as of
which the  holders  of record of  Common  Stock (or Other  Securities)  shall be
entitled to exchange their shares of Common Stock (or Other  Securities) for the
securities   or   other   property   deliverable   upon   such   reorganization,
reclassification,    recapitalization,    consolidation,    merger,    transfer,
dissolution,  liquidation or winding-up. Such notice shall be mailed at least 30
days prior to the date therein specified.

      8. REGISTRATION OF COMMON STOCK. If any shares of Common Stock required to
be reserved for purposes of exercise of this Warrant require  registration  with
or approval of any governmental  authority under any federal or state law (other
than the  Securities  Act) before such shares may be issued upon  exercise,  the
Corporation shall, at its expense and as expeditiously as possible, use its best
efforts to cause such shares to be duly registered or approved,  as the case may
be.  At any such  time as Common  Stock is  listed  on any  national  securities
exchange,  the Corporation  shall, at its expense,  obtain promptly and maintain
the  approval  for  listing  on each  such  exchange,  upon  official  notice of
issuance,  the  shares  of  Common  Stock  issuable  upon  exercise  of the then
outstanding  warrants  and  maintain  the  listing of such  shares  after  their
issuance;  and the  Corporation  shall  also  list on such  national  securities
exchange,  shall register under the Exchange Act and shall maintain such listing
of, any Other  Securities  that at any time are  issuable  upon  exercise of the
Warrants,  if and at the time that any  securities  of the same  class  shall be
listed on such national securities exchange by the Corporation.

      9. RESTRICTIONS ON TRANSFER.

      9.1. Restrictive Legends. Except as otherwise permitted by this Section 9,
each Warrant  (including  each Warrant  issued upon the transfer of any Warrant)
shall be stamped  or  otherwise  imprinted  with a legend in  substantially  the
following form:

      "THIS  WARRANT  AND ANY  SECURITIES  ACQUIRED  UPON THE  EXERCISE  OF THIS
      WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
      AMENDED,  OR THE  SECURITIES  LAWS OF ANY  STATE,  AND  MAY  NOT BE  SOLD,
      TRANSFERRED  OR  OTHERWISE  DISPOSED OF EXCEPT  PURSUANT  TO AN  EFFECTIVE
      REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
      OR PURSUANT TO AN APPLICABLE EXEMPTION TO THE REGISTRATION REQUIREMENTS OF
      SUCH ACT AND SUCH LAWS.  THIS WARRANT AND SUCH SECURITIES MAY NOT BE SOLD,
      TRANSFERRED  OR  OTHERWISE  DISPOSED  OF  EXCEPT  IN  COMPLIANCE  WITH THE
      CONDITIONS  SPECIFIED  IN  THIS  WARRANT,  COPIES  OF  WHICH  WILL BE MADE
      AVAILABLE UPON REQUEST."

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Except as otherwise permitted by this Section 9, each certificate for Common
Stock (or Other Securities) issued upon the exercise of any Warrant, and each
certificate issued upon the transfer of any such Common Stock (or Other
Securities), shall be stamped or otherwise imprinted with a legend in
substantially the following form:

      "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES  LAWS OF
      ANY STATE,  AND MAY NOT BE SOLD,  TRANSFERRED  OR  OTHERWISE  DISPOSED  OF
      EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION STATEMENT UNDER SUCH ACT AND
      APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION TO
      THE  REGISTRATION  REQUIREMENTS OF SUCH ACT AND SUCH LAWS. SUCH SECURITIES
      MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE
      WITH THE CONDITIONS  SPECIFIED IN THE COMMON STOCK PURCHASE WARRANT ISSUED
      BY GENERAL DATACOMM INDUSTRIES, INC., A COMPLETE AND CORRECT COPY OF WHICH
      IS AVAILABLE FOR  INSPECTION AT THE PRINCIPAL  OFFICE OF THE ISSUER HEREOF
      AND WILL BE  FURNISHED  TO THE  HOLDER  OF SUCH  SECURITIES  UPON  WRITTEN
      REQUEST AND WITHOUT CHARGE."

      9.2. Transfer to Comply With the Securities Act. Restricted Securities may
not be  sold,  assigned,  pledged,  hypothecated,  encumbered  or in any  manner
transferred  or  disposed  of, in whole or in part,  except  pursuant  to (i) an
effective  registration  statement  under the Securities  Act and/or  applicable
state securities or Blue Sky laws or (ii) an exemption from  registration  under
the Securities Act which is available.

      9.3. Termination of Restrictions. The restrictions imposed by this Section
9 on the  transferability of Restricted  Securities shall cease and terminate as
to any particular Restricted  Securities (a) when a registration  statement with
respect to the sale of such securities shall have been declared  effective under
the Securities Act and such securities shall have been disposed of in accordance
with such registration statement,  (b) when such securities are sold pursuant to
Rule 144 (or any similar  provision then in force) under the Securities  Act, or
(c) when,  in the  opinion of both  counsel  for the Holder and  counsel for the
Corporation,  such  restrictions are no longer required or necessary in order to
protect the Corporation  against a violation of the Securities Act upon any sale
or  other  disposition  of  such  securities  without  registration  thereunder.
Whenever  such  restrictions  shall  cease and  terminate  as to any  Restricted
Securities,  the  Holder  shall be  entitled  to receive  from the  Corporation,
without expense, new securities of like tenor not bearing the applicable legends
required by Section 9.1.

      10. REPRESENTATIONS OF THE CORPORATION.

      10.1.  Organization  and  Qualification.  The Corporation is a corporation
duly  organized  and  validly  existing in good  standing  under the laws of the
jurisdiction in which it is incorporated,  and has the requisite corporate power
to own its properties and to carry on its business as now being  conducted.  The
Corporation is duly qualified as a foreign  corporation to do business and is in
good  standing  in  every  jurisdiction  in which  the  nature  of the  business
conducted by it makes such qualification necessary.

                                       9
<PAGE>

      10.2 Authorization;  Enforcement;  Compliance with Other Instruments.  (i)
The  Corporation  has the requisite  corporate power and authority to enter into
and perform its obligations under this Warrant and to issue the shares of Common
Stock  issuable upon exercise of this Warrant,  (the "Warrant  Shares") upon the
exercise  of this  Warrant,  in  accordance  with  the  terms  hereof,  (ii) the
execution and delivery of this Warrant by the Corporation  and the  consummation
by it of the transactions  contemplated hereby and thereby,  including,  without
limitation,  the issuance of this Warrant and the  reservation  for issuance and
the issuance of the Warrant  Shares,  upon exercise of this  Warrant,  have been
duly authorized by the  Corporation's  Board of Directors and no further consent
or authorization  is required by the Corporation,  its Board of Directors or its
stockholders,  (iii) this Warrant has been duly  executed  and  delivered by the
Corporation,  and (iv) this Warrant constitutes valid and binding obligations of
the  Corporation  enforceable  against the  Corporation  in accordance  with its
terms,  except as such  enforceability  may be limited by general  principles of
equity  or  applicable  bankruptcy,  insolvency,   reorganization,   moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement
of creditors' rights and remedies.

      10.3  Issuance  of  Warrant  and  Warrant  Shares.  This  Warrant  is duly
authorized and shall not be subject to preemptive rights or other similar rights
of stockholders of the Corporation. The Warrant Shares have been duly authorized
and reserved for issuance upon exercise of this Warrant, and upon such exercise,
will be  validly  issued,  fully paid and  non-assessable,  free from all taxes,
liens and charges with respect to the issue thereof,  and will not be subject to
preemptive rights or other similar rights of stockholders of the Corporation.

      10.4 No Conflicts. The execution, delivery and performance of this Warrant
by the Corporation,  and the consummation by the Corporation of the transactions
contemplated hereby (including,  without limitation, the issuance of the Warrant
Shares)  will not (i)  result in a  violation  of any  organizational  documents
governing  the  Corporation  or (ii)  violate or conflict  with,  or result in a
breach of any  provision  of, or  constitute  a default  (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of  termination,  amendment,  acceleration  or  cancellation  of, any
material  agreement,  indenture or instrument to which the Corporation or any of
its  subsidiaries  is a party,  or  result  in a  violation  of any  law,  rule,
regulation,  order,  judgment or decree  applicable to the Corporation or any of
its  subsidiaries or by which any property or asset of the Corporation or any of
its subsidiaries is bound or affected. The Corporation is not required to obtain
any consent, authorization or order of, or make any filing or registration with,
any court or governmental or regulatory or  self-regulatory  agency in order for
it to execute,  deliver or perform any of its obligations  under or contemplated
by  this  Warrant  in   accordance   with  the  terms   hereof.   All  consents,
authorizations,  orders,  filings and  registrations  which the  Corporation  is
required to obtain  pursuant to the  preceding  sentence  have been  obtained or
effected on or prior to the date hereof.

      10.5. Investment Company Status. The Corporation is not and, upon issuance
of this Warrant or the Warrant  Shares,  will not be an "investment  company," a
company controlled by an "investment  company" or an "affiliated  person" of, or
"promoter" or "principal underwriter" for, an "investment company" as such terms
are defined in the Investment Company Act of 1940, as amended.

                                       10
<PAGE>

      11.  RESERVATION OF STOCK, ETC. The Corporation shall at all times reserve
and keep  available,  solely for  issuance and  delivery  upon  exercise of this
Warrant and any other warrants outstanding, the number of shares of Common Stock
(or Other  Securities)  from time to time issuable upon exercise of this Warrant
and any other  warrants then  outstanding.  All shares of Common Stock (or Other
Securities) issuable upon exercise of this Warrant shall be duly authorized and,
when  issued  upon such  exercise,  shall be validly  issued and, in the case of
shares,  fully  paid and  nonassessable,  with no  liability  on the part of the
holders  thereof,  and,  in the case of all  securities,  shall be free from all
taxes, liens, security interests,  encumbrances,  preemptive rights and charges.
The transfer agent for the Common Stock, which may be the Corporation ("Transfer
Agent"), and every subsequent Transfer Agent for any shares of the Corporation's
capital  stock  issuable  upon  the  exercise  of  any of  the  purchase  rights
represented by this Warrant,  are hereby irrevocably  authorized and directed at
all times until the  Expiration  Date to reserve such number of  authorized  and
unissued shares as shall be requisite for such purpose.  The  Corporation  shall
keep copies of this Warrant on file with the Transfer Agent for the Common Stock
and with every  subsequent  Transfer  Agent for any shares of the  Corporation's
capital stock  issuable upon the exercise of the rights of purchase  represented
by this Warrant.  The  Corporation  shall supply such  Transfer  Agent with duly
executed stock certificates for such purpose.

      12. REGISTRATION AND TRANSFER OF WARRANTS, ETC.

      12.1. Warrant Register;  Ownership of Warrants. Each Warrant issued by the
Corporation shall be numbered and shall be registered in a warrant register (the
"Warrant  Register") as it is issued and  transferred,  which  Warrant  Register
shall be  maintained  by the  Corporation  at its  principal  office  or, at the
Corporation's  election and expense,  by a Warrant Agent or the Transfer  Agent.
The Corporation  shall be entitled to treat the registered holder of any Warrant
on the Warrant  Register as the owner in fact thereof for all purposes and shall
not be bound to  recognize  any  equitable or other claim to or interest in such
Warrant on the part of any other Person, and shall not be affected by any notice
to the contrary,  except that,  if and when any Warrant is properly  assigned in
blank,  the  Corporation  may (but shall not be  obligated  to) treat the bearer
thereof as the owner of such Warrant for all  purposes.  Subject to Section 9, a
Warrant,  if properly  assigned,  may be exercised by a new holder without a new
Warrant first having been issued.

      12.2.  Transfer of  Warrants.  Subject to  compliance  with  Section 9, if
applicable, this Warrant and all rights hereunder are transferable,  in whole or
in part,  without  charge to the Holder  hereof,  upon surrender of this Warrant
with a properly  executed Form of Assignment,  attached  hereto as Exhibit B, at
the  principal  office of the  Corporation,  to any family  member of the Holder
and/or any trust, corporation or other affiliate of any such family member. Upon
any partial transfer,  the Corporation shall, at its expense,  issue and deliver
to the Holder a new  Warrant of like  tenor,  in the name of the  Holder,  which
shall be  exercisable  for such number of shares of Common Stock with respect to
which  rights under this Warrant  were not so  transferred.  Warrant  Shares are
transferable,  in whole or in part, without charge to the Holder thereof, to any
family member of the Holder and/or any trust,  corporation or other affiliate of
any such family member.

                                       11
<PAGE>

      12.3.  Replacement of Warrants.  On receipt by the Corporation of evidence
reasonably  satisfactory to the Corporation of the loss,  theft,  destruction or
mutilation  of  this  Warrant  and,  in the  case of any  such  loss,  theft  or
destruction of this Warrant,  on delivery of an indemnity  agreement  reasonably
satisfactory  in form and amount to the  Corporation or, in the case of any such
mutilation,  on surrender of such Warrant to the  Corporation  at its  principal
office and cancellation thereof, the Corporation,  at its expense, shall execute
and deliver, in lieu thereof, a new Warrant of like tenor.

      12.4.  Adjustments  To Number of  Shares.  Notwithstanding  the  number of
shares of Common Stock  purchasable  upon exercise of this Warrant,  any Warrant
theretofore  or  thereafter  issued may  continue  to express the same number of
shares of Common Stock as are stated in this Warrant, as initially issued.

      12.5.  Fractional Shares.  Notwithstanding any adjustment in the number of
shares of Common Stock  covered by this  Warrant or any other  provision of this
Warrant, the Corporation shall not be required to issue fractions of shares upon
exercise of this Warrant or to distribute certificates which evidence fractional
shares. In lieu of fractional  shares, the Corporation shall make payment to the
Holder, at the time of exercise of this Warrant as herein provided, in an amount
in cash equal to such fraction  (after  aggregation of all shares and fractional
shares to be issued upon such  exercise)  multiplied by the Current Market Price
of a share of Common Stock on the date of Warrant exercise.

      13. REMEDIES; SPECIFIC PERFORMANCE.  The Corporation stipulates that there
would be no adequate remedy at law to the Holder of this Warrant in the event of
any default or threatened  default by the  Corporation in the  performance of or
compliance  with  any  of  the  terms  of  this  Warrant  and  accordingly,  the
Corporation agrees that, in addition to any other remedy to which the Holder may
be entitled at law or in equity,  the Holder shall be entitled to seek to compel
specific  performance of the obligations of the Corporation  under this Warrant,
without the posting of any bond, in accordance  with the terms and conditions of
this  Warrant  in any court of the  United  States or any State  thereof  having
jurisdiction,  and if any action  should be brought in equity to enforce  any of
the provisions of this Warrant, the Corporation shall not raise the defense that
there is an adequate remedy at law. Except as otherwise provided by law, a delay
or omission by the Holder hereto in exercising any right or remedy accruing upon
any such breach  shall not impair the right or remedy or  constitute a waiver of
or  acquiescence  in any such breach.  No remedy shall be exclusive of any other
remedy. All available remedies shall be cumulative.

      14. NO LIABILITIES AS STOCKHOLDER. Nothing contained in this Warrant shall
be construed as imposing any obligation on the Holder to purchase any securities
or  as  imposing  any  liabilities  on  the  Holder  as  a  stockholder  of  the
Corporation,  whether  such  obligation  or  liabilities  are  asserted  by  the
Corporation or by creditors of the Corporation.

                                       12
<PAGE>

      15.  NOTICES.  All  notices  and  other  communications  (and  deliveries)
provided for or permitted  hereunder  shall be made in writing by hand delivery,
telecopier,   any  courier  guaranteeing   overnight  delivery  or  first  class
registered  or  certified  mail,  return  receipt  requested,  postage  prepaid,
addressed as follows:

                  If to the Corporation:    General DataComm Industries, Inc.
                                            6 Rubber Avenue
                                            Naugatuck, CT 06770
                                            Attention:  Mr. William Henry,
                                            Chief Financial Officer
                                            Fax No.:  (203) 729-3182

                        with copies to:      Weisman Celler Spett & Modlin, P.C.
                                             445 Park Avenue
                                             New York, NY 10022
                                             Attn: Gerald Gordon, Esq.
                                             Fax No: (212) 371-5407

                  If to Holder:              Howard S. Modlin
                                             445 Park Avenue
                                             New York, NY 10022
                                             Fax No: (212) 371-5407

                         with copies to:     Weisman Celler Spett & Modlin, P.C.
                                             445 Park Avenue
                                             New York, NY 10022
                                             Attn: Gerald Gordon, Esq.
                                             Fax No: (212) 371-5407

      All such notices and  communications  (and deliveries)  shall be deemed to
have been duly given:  at the time  delivered by hand, if personally  delivered;
when receipt is acknowledged, if telecopied; on the next Business Day, if timely
delivered  to a courier  guaranteeing  overnight  delivery;  and five days after
being  deposited in the mail, if sent first class  registered or certified mail,
return receipt requested,  postage prepaid;  provided, that, the exercise of any
Warrant shall be effective in the manner provided in Section 2.

      16.  AMENDMENTS.  This  Warrant  and any term  hereof may not be  amended,
modified, supplemented or terminated, and waivers or consents to departures from
the  provisions  hereof  may not be given,  except by  written  instrument  duly
executed by the party against which enforcement of such amendment, modification,
supplement, termination or consent to departure is sought.

      17.  DESCRIPTIVE  HEADINGS,  ETC.  The  headings  in this  Warrant are for
convenience  of  reference  only and  shall not limit or  otherwise  affect  the
meaning of terms contained herein.  Unless the context of this Warrant otherwise
requires:  (1) words of any gender shall be deemed to include each other gender;
(2) words using the  singular or plural  number shall also include the plural or
singular number, respectively;  (3) the words "hereof", "herein" and "hereunder"
and words of  similar  import  when  used in this  Warrant  shall  refer to this
Warrant as a whole and not to any  particular  provision  of this  Warrant,  and
Section and  paragraph  references  are to the Sections and  paragraphs  of this
Warrant  unless  otherwise  specified;  (4) the word  "including"  and  words of
similar  import  when  used in  this  Warrant  shall  mean  "including,  without
limitation,"  unless  otherwise  specified;  (5) "or" is not exclusive;  and (6)
provisions apply to successive events and transactions.

                                       13
<PAGE>

      18.  CHOICE OF LAW AND VENUE;  JURY TRIAL  WAIVER.  THE  VALIDITY  OF THIS
WARRANT,  THE  CONSTRUCTION,  INTERPRETATION,  AND ENFORCEMENT  HEREOF,  AND THE
RIGHTS OF THE PARTIES  HERETO WITH RESPECT TO ALL MATTERS  ARISING  HEREUNDER OR
RELATED  HERETO  SHALL BE  DETERMINED  UNDER,  GOVERNED  BY,  AND  CONSTRUED  IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

      THE PARTIES  AGREE THAT ALL ACTIONS OR  PROCEEDINGS  ARISING IN CONNECTION
WITH THIS  WARRANT  SHALL BE TRIED AND  LITIGATED  ONLY IN THE STATE AND FEDERAL
COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK. THE CORPORATION AND
HOLDER WAIVE, TO THE EXTENT  PERMITTED UNDER  APPLICABLE LAW, ANY RIGHT EACH MAY
HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE
EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 18.

      THE CORPORATION AND HOLDER HEREBY WAIVE THEIR RESPECTIVE  RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION  BASED UPON OR ARISING OUT OF THIS WARRANT
OR ANY OF THE TRANSACTIONS  CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. THE
CORPORATION  AND HOLDER  REPRESENT  THAT EACH HAS REVIEWED  THIS WAIVER AND EACH
KNOWINGLY AND VOLUNTARILY  WAIVES ITS JURY TRIAL RIGHTS  FOLLOWING  CONSULTATION
WITH LEGAL COUNSEL.  IN THE EVENT OF  LITIGATION,  A COPY OF THIS WARRANT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

      19. COSTS AND ATTORNEYS' FEES. In the event that any action, suit or other
proceeding  is  instituted  concerning  or  arising  out of  this  Warrant,  the
Corporation  agrees and the Holder,  by taking and holding this Warrant  agrees,
that the  prevailing  party shall recover from the  non-prevailing  party all of
such  prevailing  party's costs and reasonable  attorneys' fees incurred in each
and every such action,  suit or other proceeding,  including any and all appeals
or petitions therefrom.

                                       14
<PAGE>

      IN WITNESS  WHEREOF,  the  Corporation  has  executed and  delivered  this
Warrant as of the date first above written.

                                             GENERAL DATACOMM INDUSTRIES, INC.

                                             By:
                                                  ------------------------------
                                                  Name: William G. Henry
                                                  Title: Vice President Finance
                                                         and Adminstration

                         [Signature page to the Warrant]

<PAGE>

                                                                    EXHIBIT A to
                                                   Common Stock Purchase Warrant

                                     FORM OF
                           ELECTION TO PURCHASE SHARES

      The  undersigned  hereby  irrevocably  elects to  exercise  the Warrant to
purchase  ____  shares  of Common  Stock,  par  value  $0.01 per share  ("Common
Stock"),  of GENERAL  DATACOMM  INDUSTRIES,  INC. and hereby  [makes  payment of
$________  therefor]  [or]  [makes  payment  therefor by  reduction  pursuant to
Section  2.1(b)(iii)  of the  Warrant  of the  number of shares of Common  Stock
otherwise  issuable to the Holder  upon  Warrant  exercise  by ___ shares]  [or]
[makes payment therefor by delivery of the following  Common Stock  Certificates
of the Corporation (properly endorsed for transfer in blank) for cancellation by
the Corporation  pursuant to Section 2.1(b)(iv) of the Warrant,  certificates of
which are attached  hereto for  cancellation  [list  certificates  by number and
amount]].  The undersigned  hereby requests that certificates for such shares be
issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                     (NAME)
--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)
--------------------------------------------------------------------------------
                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:
           ---------------------------------------------------------------------
                                     (NAME)
--------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

      If the number of shares of Common Stock purchased  (and/or reduced) hereby
is less than the number of shares of Common Stock  covered by the  Warrant,  the
undersigned  requests  that a new Warrant  representing  the number of shares of
Common Stock not so purchased (or reduced) be issued and delivered as follows:

ISSUE TO:
         -----------------------------------------------------------------------
                                (NAME OF HOLDER)

                          (ADDRESS, INCLUDING ZIP CODE)

DELIVER TO:
           ---------------------------------------------------------------------
                                (NAME OF HOLDER)

                          (ADDRESS, INCLUDING ZIP CODE)

Dated: _____________, 20__                        [NAME OF HOLDER]

                                                  By
                                                    ----------------------------
                                                     Name:
                                                     Title:

<PAGE>

                                                   EXHIBIT B to
                                                   Common Stock Purchase Warrant

                               FORM OF ASSIGNMENT

      FOR VALUE RECEIVED,  the undersigned hereby sells,  assigns, and transfers
unto the Assignee  named below all of the rights of the  undersigned to purchase
Common Stock,  par value $0.01 per share  ("Common  Stock") of GENERAL  DATACOMM
INDUSTRIES,  INC.  represented  by the  Warrant,  with  respect to the number of
shares of Common Stock set forth below:

Name of Assignee               Address                             No. of Shares
----------------               -------                             -------------

and does hereby irrevocably constitute and appoint ________ Attorney to make
such transfer on the books of the Corporation maintained for that purpose, with
full power of substitution in the premises.

Dated: _______________, 20__                        [NAME OF HOLDER]

                                                    ----------------------------
                                                    Name:
                                                    Title:EXHIBIT 10.1

                                SEVENTH AMENDMENT
                     TO ADDITIONAL SENIOR SECURITY AGREEMENT

      SEVENTH AMENDMENT,  dated AS OF April 20, 2006 (the  "Amendment"),  to the
Additional Senior Security Agreement referred to below, by and among (i) GENERAL
DATACOMM INDUSTRIES,  INC., a Delaware  corporation,  GENERAL DATACOMM,  INC., a
Delaware   corporation  ("GDC"),   DATACOMM  LEASING  CORPORATION,   a  Delaware
corporation, GDC HOLDING COMPANY, LLC, a Delaware limited liability company, GDC
NAUGATUCK,  INC., a Delaware corporation,  GDC FEDERAL SYSTEMS, INC., a Delaware
corporation,  GDC REALTY,  INC., a Texas  corporation  (each,  a "Borrower"  and
collectively,  the "Debtors") and Howard S. Modlin ("Modlin") and John L. Segall
(together with their successors and assigns the "Secured Party")

      WHEREAS,  the Debtors are obligated to repay certain indebtedness owing to
Ableco Finance LLC as Agent and the Lenders under that certain Loan and Security
Agreement  dated as of August 20, 2002 (as amended,  supplemented  and otherwise
modified from time to time, the " Senior Loan Agreement");

      WHEREAS, GDC and the other Debtors have requested that Modlin as a Secured
Party  change the terms of a demand loan made on February 17, 2006 in the amount
of $250,000 which was used to replace  $250,000 of the  obligations  owed to the
Lenders under the Senior Loan  Agreement to a term loan,  fifty percent (50%) of
which shall be payable one year from  February 17, 2006 and fifty  percent (50%)
of which shall be payable two years from  February  17, 2006 as  reflected by an
Additional  Amended and  Restated  Note (the  "Additional  Amended and  Restated
Note")  subject to (i) the  execution  and  delivery  of this  Amendment  by the
Debtors, and (ii) the other terms and conditions set forth in this Amendment;

      NOW  THEREFORE,  in  consideration  of the  premises  and  other  good and
valuable consideration, the parties hereto hereby agree as follows:

      1.  Definitions  in Amendment.  Any  capitalized  term used herein and not
defined shall have the meaning assigned to it in the Additional  Senior Security
Agreement  dated  December 30, 2003 between the Debtors and the Secured Party as
heretofore amended ( the "Security Agreement").

      2.  Replacement  Note. The Additional  Amended and Restated Note including
accrued  interest  shall be deemed a Note and  Indebtedness  under the  Security
Agreement.

      3. Indebtedness  Secured.  Paragraph 3 of the Security  Agreement entitled
"Indebtedness  Secured" is amended by replacing the last sentence thereof in its
entirety by the following new sentence "The Security Interest granted by Debtors
secures  payment  of any and all  indebtedness  of Parent  and its  subsidiaries
incurred  under the Amended and Restated  Notes and the  Additional  Amended and
Restated  Note payable to Modlin as a Secured  Party dated April 20, 2006 in the
original  principal  amount of $250,000  and which notes total  $1,850,000  plus
accrued interest (the "Notes.")

<PAGE>

      4. Miscellaneous.

            (a)  Continued  Effectiveness  of  Security  Agreement.   Except  as
otherwise  expressly  provided herein,  the Security Agreement shall continue to
be, in full  force  and  effect  and is hereby  ratified  and  confirmed  in all
respects.  Except as expressly  provided  herein,  the  execution,  delivery and
effectiveness  of this Amendment  shall not constitute an amendment of any other
provision of the Security Agreement.

            (b)  Counterparts.  This  Amendment may be executed in any number of
counterparts and by different parties hereto in separate  counterparts,  each of
which shall be deemed to be an original,  but all of which taken  together shall
constitute one and the same agreement.

            (c) Headings.  Section  headings herein are included for convenience
of  reference  only and shall not  constitute a part of this  Amendment  for any
other purpose.

            (d)  Governing  Law.  This  Amendment  shall  be  governed  by,  and
construed in accordance with, the law of the State of New York.

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed and delivered as of the date first above written.

                                            Borrowers:

                                            GENERAL DATACOMM INDUSTRIES, INC.
                                            a Delaware corporation

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

                                            Title:    Vice President
                                                  ------------------------------

                                            GENERAL DATACOMM, INC.,
                                            a Delaware corporation

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

                                            Title:   Vice President
                                                  ------------------------------

<PAGE>

                                            DATACOMM LEASING CORPORATION,
                                            a Delaware corporation

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

                                            Title:      Vice President

                                            GDC HOLDING COMPANY, LLC,
                                            a Delaware limited liability company

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

                                            Title:   Vice President

                                            GDC FEDERAL SYSTEMS, INC.,
                                            a Delaware corporation

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

                                            Title:   Vice President

                                            GDC NAUGATUCK, INC.,
                                            a Delaware corporation

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

                                            Title:            Vice President

                                            GDC REALTY, INC.,
                                            a Texas corporation

                                            By
                                              ----------------------------------
                                            Title:            Vice President

                                            Secured Party

                                            ------------------------------------
                                            Howard S. Modlin

                                            ------------------------------------
                                            John L. Segall

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