Document:

EXHIBIT 10.42
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                                 Amendment No. 1
                                       To
                                   Blair Hayes
                              Employment Agreement

        THIS AMENDMENT NO. 1 TO THE BLAIR HAYES EMPLOYMENT AGREEMENT ("Amendment
No. 1") is made as of the first day of April, 1999 by and between Blair Hayes, a
resident of New York ("Employee") and ImageMax, Inc., a Pennsylvania corporation
(the "Company").

        WHEREAS, the Company and the Employee entered into that certain
Employment Agreement dated June 11, 1998 (the "Agreement") upon the closing of
its purchase of all of the assets of Advanced Image Management, Inc. pursuant to
that certain Asset Purchase Agreement by and among Advanced Image Management,
Inc., the Company, Employee, Scott F. Secord and Deana M. Gugger (the "Asset
Purchase Agreement").

        WHEREAS, the parties desire to amend the Agreement by entering into this
Amendment No. 1 in the manner set forth below.

        WHEREAS, all terms used but not defined in this Amendment No. 1 shall
have the meanings ascribed to them in the Agreement.

        NOW, THEREFORE, in consideration of the mutual covenants and obligations
contained herein, and intending to be legally bound, the parties, subject to the
terms and conditions set forth herein, agree as follows:

     1. Employment and Term. Section 1 of the Agreement entitled "Employment and
Term" shall be amended and restated in its entirety as follows:

          "1. Employment and Term. The Company hereby employs Employee and
     Employee hereby accepts employment with the Company, as Western Regional
     Manager and Co-Chief Operating Officer (such position, Employee's
     "Position") for a period commencing on the date of Amendment No. 1 to this
     Agreement and continuing until December 31, 1999, subject to the provisions
     of Section 9 hereof (as may be extended upon mutual agreement of Employee
     and the Company, the "Term")."

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     2. Compensation. Section 4 of the Agreement entitled "Compensation" shall
be amended and restated in its entirety as follows:

          "4. Compensation. The Company shall pay Employee, and Employee hereby
     agrees to accept, as compensation for all services rendered hereunder and
     for Employee's covenant not to compete as provided for in Section 8 hereof,
     an base salary at the annual rate of One-Hundred Thirty Thousand ($130,000)
     (as the same may hereafter be increased, the "Base Salary"). The Base
     Salary shall be inclusive of all applicable income, social security and
     other taxes and charges payable by Employee which are required by law to be
     withheld by the Company or which are requested to be withheld by Employee,
     and which shall be withheld and paid in accordance with the Company's
     normal payroll practice for the similarly situated employees. Increases in
     the Base Salary may be granted from time to time at the sole discretion of
     the Company.

          In addition to the Base Salary, the Company shall pay to Employee, by
     wire transfer or check (at the sole discretion of the Company), Forty
     Thousand Dollars ($40,000) on or prior to July 15, 1999; provided, however,
     that Employee's employment hereunder has not been terminated on each such
     date.

          In addition to the Base Salary and the payments set forth in the
     preceding paragraph, commencing with fiscal year 1999, the Company shall
     pay Employee, within 30 days after receipt of the final audit for each
     fiscal year, such bonus (the "Bonus") as the Company shall determine. Such
     Bonus shall be based on the guidelines established in advance of each
     fiscal year, including, but not limited to, the results of the Company's
     operations, achievement of business unit targets, if applicable, individual
     performance as compared to specific management objectives set prior to each
     year, and a subjective assessment of Employee's performance. Accrual of any
     Bonus on the financial books and records of the Company for Employee shall
     in no way obligate the Company to pay a Bonus."

     3. Termination. The following subparagraphs of Section 9 of the Agreement
entitled "Termination" shall be amended and restated in their entirety as
follows:

     4. a) Section 9.4 of the Agreement shall be amended and restated in its
entirety as follows:

     "9.4 Termination By Company Without Cause.

          (a) The Company may terminate Employee's employment hereunder at any
     time, for any reason, with or without cause, effective upon the date
     designated by the Company upon written

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        notice to Employee; provided, however, in no event shall the Company
        terminate Employee's employment hereunder prior to July 16, 1999.

            (b) In the event of a termination of Employee's employment hereunder
        pursuant to Section 9.4(a), Employee shall be entitled to receive all
        earned but unpaid (as of the effective date of such termination) Base
        Salary, Benefits and Other Compensation plus continuation of Base Salary
        and Benefits for one hundred eighty (180) days from the effective date
        of such termination. Except as specifically set forth in this Section
        9.4, the Company shall have no liability or obligation hereunder by
        reason of such termination."

     5. Schedule A. A new Item 7 entitled "Relocation Expenses" shall be added
to Exhibit A to the Agreement as follows:

        "7. Relocation Expenses: The Company shall reimburse Employee for the
following reasonable expenses in connection with a relocation from the Syracuse,
New York area:

        a. Coach air travel, overnight accommodations, meals and reasonable
incidentals for employee and wife to visit potential locations in the western
states, such amount not to exceed $3,000.

        b. Reasonable moving expenses to include personal travel, transportation
of personal items and reasonable incidentals, not to exceed $10,000.

        c. Closing costs related to the sale of employees' home in Syracuse, NY,
to include brokerage commission.

        d. Gross up of the above reimbursable expenses such that employee will
incur no additional taxes.

        All reimbursements will be made only upon presentment of receipts or
service provider invoices. The Company will directly pay such invoices when
possible. All such payments are subject to the review and approval by the
Company's Chief Accounting Officer as to form and reasonableness."

     6. Remaining Terms of the Agreement. All other terms and provisions of
the Agreement not expressly modified by this Amendment No. 1 shall remain in
full force and effect and are hereby expressly ratified and confirmed.

     7. Amendment of Asset Purchase Agreement. The parties hereto agree that
the term "Restricted Period" in Section 1.37 of the Asset Purchase Agreement
shall be amended as to the Employee only so that such term shall mean "the
period commencing on the Closing Date and ending on the second anniversary of
the date on which such Shareholder's employment with the

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Purchaser, expires, is not renewed, or is otherwise terminated, as such period
may be extended pursuant to Section 7.3(b) of the Asset Purchase Agreement."

     8. Governing Law. This Amendment No. 1 shall be construed and enforced
in accordance with the laws of the Commonwealth of Pennsylvania.

     9. Counterparts. This Amendment No. 1 may be executed by facsimile
signature and in multiple counterparts all of which together shall constitute
one and the same original document.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
the day and year first written above.

                                        IMAGEMAX, INC.

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

                                        EMPLOYEE

                                           /s/ Blair Hayes
                                        -----------------------------------
                                        Name: Blair Hayes

                                      -4-Exhibit 10.1
                 Premier Bank's 1995 Incentive Stock Option Plan

Incorporated by reference to Exhibit 99.6 to the company's Registration
Statement No. 333-34243 on Form S-4 filed with the Securities and Exchange
Commission on August 22, 1997 and amended on September 9, 1997.Exhibit 10.2
   Change of Control Agreement between Premier Bancorp, Inc., Premier Bank and
                               John C. Soffronoff

Incorporated by reference to Exhibit 10.2 to our Quarterly Report on Form 10-QSB
filed with the Commission on November 13, 1998.Exhibit 10.3
   Change of Control Agreement between Premier Bancorp, Inc., Premier Bank and
                                 John J. Ginley

Incorporated by reference to Exhibit 10.3 to our Quarterly Report on Form 10-QSB
filed with the Commission on November 13, 1998.Exhibit 10.4
   Change of Control Agreement between Premier Bancorp, Inc., Premier Bank and
                                 Bruce E. Sickel

Incorporated by reference to Exhibit 10.4 to our Quarterly Report on Form 10-QSB
filed with the Commission on November 13, 1998.Exhibit 4(ii)

THIS CONVERTIBLE UNSECURED PROMISSORY NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), NOR UNDER ANY STATE SECURITIES LAW, AND MAY NOT BE PLEDGED,
SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNTIL (1) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE
STATE SECURITIES LAW OR (2) THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE
COMPANY OR OTHER COUNSEL TO THE HOLDER OF SUCH NOTE REASONABLY SATISFACTORY TO
THE COMPANY THAT SUCH NOTE AND/OR COMMON STOCK MAY BE PLEDGED, SOLD, ASSIGNED,
HYPOTHECATED OR TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE ACT OR APPLICABLE STATE SECURITIES LAWS.

                            RELM WIRELESS CORPORATION
                   8% Convertible Subordinated Promissory Note
                              Due December 31, 2004
$[_________________]                                                   No. [   ]

[________________________, 2000]

         RELM WIRELESS CORPORATION, a corporation organized under the laws of
the State of Nevada (the "Company"), for value received, hereby promises to pay
to [ ], or registered assigns (the "Payee" or "Holder") upon due presentation
and surrender of this Note, on December 31, 2004 (the "Maturity Date"), the
principal amount of [ ] ($_________) and accrued interest thereon as hereinafter
provided.

         This Convertible Subordinated Promissory Note (this "Note") was issued
by the Company on ______, 2000 (the "Issuance Date") pursuant to a certain
Confidential Term Sheet dated as of March ___, 2000 (together with the Schedules
and Exhibits thereto, the "Term Sheet") relating to the purchase and sale of 8%
Convertible Subordinated Promissory Notes maturing December 31, 2004
(collectively, the "Notes") in the aggregate principal amount of up to
$3,250,000. The holders of such Notes are referred to hereinafter as the
"Holders."

                                    ARTICLE I

              PAYMENT OF PRINCIPAL AND INTEREST; METHOD OF PAYMENT

                  1.1 Payment of the principal and accrued interest on this Note
shall be made in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts. Interest (computed on the basis of a 360-day year of twelve 30-day
months) on the unpaid portion of said principal amount from time to time
outstanding shall be paid by the Company at the rate of eight percent (8%) per
annum (the "Stated Interest Rate"), in like coin and currency, payable to the
Payee in three (3) month intervals on each January 1, April 1, July 1 and
October 1 during the term of this Note (commencing April 1, 2000) (an "Interest
Payment Date") and on the Maturity Date. Interest shall accrue from the Issuance
Date. Both principal hereof and interest thereon are payable at the

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Holder's address above or such other address as the Holder shall designate from
time to time by written notice to the Company. The Company will pay or cause to
be paid all sums becoming due hereon for principal and interest by check, sent
to the Holder's above address or to such other address as the Holder may
designate for such purpose from time to time by written notice to the Company,
without any requirement for the presentation of this Note or making any notation
thereon, except that the Holder hereof agrees that payment of the final amount
due shall be made only upon surrender of this Note to the Company for
cancellation. Prior to any sale or other disposition of this instrument, the
Holder hereof agrees to endorse hereon the amount of principal paid hereon and
the last date to which interest has been paid hereon and to notify the Company
of the name and address of the transferee.

                  1.2 If this Note or any installment hereof becomes due and
payable on a Saturday, Sunday or public holiday under the laws of the State of
New York, the due date hereof shall be extended to the next succeeding full
business day. All payments received by the Holder shall be applied first to the
payment of all accrued interest payable hereunder.

                                   ARTICLE II

                                   CONVERSION

                  2.1 Conversion at Option of Holder. At any time and from time
to time until the earlier of (i) the Maturity Date or (ii) the conversion of the
Note in accordance with Section 2.2 hereof, this Note is convertible in whole or
in part at the Holder's option into shares of common stock, par value $0.60 per
share, (the "Common Stock") of the Company upon surrender of this Note, at the
office of the Company, accompanied by a written notice of conversion in the form
of Attachment II hereto, or otherwise in form reasonably satisfactory to the
Company duly executed by the registered Holder or its duly authorized attorney.
This Note is convertible into shares of Common Stock at a price per share of
Common Stock equal to $3.25 per share (the "Conversion Price"). Interest shall
accrue to and including the day prior to the date of conversion and shall be
paid on the last day of the month in which conversion rights hereunder are
exercised. No fractional shares or scrip representing fractional shares will be
issued upon any conversion, but an adjustment in cash will be made, in respect
of any fraction of a share which would otherwise be issuable upon the surrender
of this Note for conversion. As soon as practicable following conversion and
upon the Holder's compliance with the conversion procedure described in Section
2.3 hereof, the Company shall deliver a certificate for the number of full
shares of Common Stock issuable upon conversion and a check for any fractional
share and, in the event the Note is converted in part, a new Note of like tenor
in the principal amount equal to the remaining principal balance of this Note
after giving effect to such partial conversion.

                  2.2 Conversion at Option of the Company. Provided that an
Event of Default as provided herein (relating to the failure to pay principal
and interest under the Note) shall not have occurred and then be continuing, in
the event that (i) the closing price per share of the Company's Common Stock on
the NASDAQ National Market System or such other exchange as

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the Common Stock may then be listed exceeds $6.50 per share for each ninety (90)
consecutive trading days; and (ii) the Common Stock to be issued to holder upon
conversion of the Note is registered under an effective registration statement
under the Securities Act of 1933, as amended, then at any time thereafter until
the Maturity Date, the Company may upon written notice to the Holders of all
Notes (the "Mandatory Conversion Notice") require that all, but not less than
all, of the outstanding principal amount of the Notes be converted into shares
of Common Stock at a price per share equal to the Conversion Price. The
Mandatory Conversion Notice shall state (1) the date fixed for conversion (the
"Conversion Date") (which date shall not be prior to the date the Mandatory
Conversion Notice is given), (2) any disclosures required by law, (3) the
trading dates and closing prices of the Common Stock giving rise to the
Company's option to require conversion of the Notes, (4) that the Notes shall
cease to accrue interest after the day immediately preceding the Conversion
Date, (5) the place where the Notes shall be delivered and (6) any other
instructions that Holders must follow in order to tender their Notes in exchange
for certificates for shares of Common Stock. No failure to mail such notice nor
any defect therein or in the mailing thereof shall affect the validity of the
proceedings for such conversion, except as to a Holder (x) to whom notice was
not mailed or (y) whose notice was defective. An affidavit of the Secretary or
an Assistant Secretary of the Company or an agent employed by the Company that
notice of conversion has been mailed postage prepaid to the last address of the
Holder appearing on the Note registry books kept by the Company shall, in the
absence of fraud, be prima facie evidence of the facts stated therein. On and
after the Conversion Date, except as provided in the next two sentences, Holders
of the Notes shall have no further rights except to receive, upon surrender of
the Notes, a certificate or certificates for the number of shares of Common
Stock as to which the Note shall have been converted. Interest shall accrue to
and include the day prior to the Conversion Date and shall be paid on the last
day of the month in which Conversion Date occurs. No fractional shares or scrip
representing fractional shares will be issued upon any conversion, but an
adjustment in cash will be made, in respect of any fraction of a share which
would otherwise be issuable upon the surrender of this Note for conversion.

                  2.3 Registration of Transfer; Conversion Procedure. This Note
and all rights hereunder may be sold, transferred or otherwise disposed of, in
whole or in part, to any person in accordance with and subject to the provisions
of the Securities Act of 1933, as amended (the "Securities Act"), and the rules
and regulations promulgated thereunder The Company shall maintain books for the
transfer and registration of the Notes. Upon the transfer of any Note with
notice attached hereto as Attachment I and in accordance with applicable law or
regulation, the Company shall issue and register the Note in the names of the
new holders. The Notes shall be signed manually by the Chairman, Chief Executive
Officer, President or any Vice President and the Secretary or Assistant
Secretary of the Company. The Company shall convert, from time to time, any
outstanding Notes upon the books to be maintained by the Company for such
purpose upon surrender thereof for conversion properly endorsed and, in the case
of a conversion pursuant to Section 2.1 hereof, accompanied by a properly
completed and executed Conversion Notice attached hereto as Attachment II and
any documentation deemed necessary by the Company showing the availability of an
exemption under applicable state and federal securities laws. Subject to the
terms of this Note, upon surrender of this Note, the Company shall issue and
deliver with all reasonable dispatch to or upon the written order of the Holder
of such Note and in such name or names as such Holder may designate, a
certificate or certificates for the number

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<PAGE>

of full shares of Common Stock due to such Holder upon the conversion of this
Note. Such certificate or certificates shall be deemed to have been issued and
any person so designated to be named therein shall be deemed to have become the
Holder of record of such shares of Common Stock as of the date of the surrender
of this Note. Upon conversion, the Holder will be required to execute and
deliver any documentation deemed necessary by the Company showing the
availability of an exemption under applicable state and federal securities laws.

                  2.4 Company to Provide Common Stock. The Company has shares of
Common Stock available to reserve for issuance upon the conversion of the Notes.
The shares of Common Stock which may be issued upon the conversion of the Notes
shall be fully paid and non-assessable and free of preemptive rights. The
Company will comply with all securities laws regulating the offer and delivery
of the shares upon conversion of the Notes and will list such shares on each
national securities exchange or quotation system upon which the Common Stock is
listed or quoted. Each share of Common Stock issued upon exercise of this Note
shall bear a legend containing the following words:

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THE
                  SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
                  SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT IN
                  COMPLIANCE WITH SUCH ACT.

                  The requirement that the above legend be placed upon
certificates evidencing any such securities shall cease and terminate upon the
earliest of the following events: (i) when such shares are transferred in an
underwritten public offering, (ii) when such shares are transferred pursuant to
Rule 144 under the Securities Act or (iii) when such shares are transferred in
any other transaction if the seller delivers to the Company an opinion of its
counsel, which counsel and opinion shall be reasonably satisfactory to the
Company, or a "no-action" letter from the Staff of the Securities and Exchange
Commission, in either case to the effect that such legend is no longer necessary
in order to protect the Company against a violation by it of the Securities Act
upon any sale or other disposition of such shares without registration
thereunder. Upon the occurrence of such event, the Company, upon the surrender
of certificates containing such legend, shall, at its own expense, deliver to
the holder of any such securities as to which the requirement for such legend
shall have terminated, one or more new certificates evidencing such securities
not bearing such legend.

                  2.5 Dividends; Reclassifications, etc. In the event that the
Company shall, at any time prior to the earlier to occur of (i) exercise of
conversion rights hereunder and (ii) the Maturity Date: (i) declare or pay to
the holders of the Common Stock a dividend payable in any kind of shares of
capital stock of the Company; or (ii) change or divide or otherwise reclassify
its Common Stock into the same or a different number of shares with or without
par value, or in shares of any class or classes; or (iii) transfer its property
as an entirety or substantially as an entirety to any other company or entity;
or (iv) make any distribution of its assets to holders of its Common Stock as a
liquidation or partial liquidation dividend or by way of return of capital;

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<PAGE>

then, upon the subsequent exercise of conversion rights, the Holder thereof
shall receive, in addition to or in substitution for the shares of Common Stock
to which it would otherwise be entitled upon such exercise, such additional
shares of stock or scrip of the Company, or such reclassified shares of stock of
the Company, or such shares of the securities or property of the Company
resulting from transfer, or such assets of the Company, which it would have been
entitled to receive had it exercised these conversion rights prior to the
happening of any of the foregoing events.

                  2.6 Reorganization of the Company. If the Company is a party
to a merger or other transaction which reclassifies or changes its outstanding
Common Stock, upon consummation of such transaction this Note shall
automatically become convertible into the kind and amount of securities, cash or
other assets which the Holder of this Note would have owned immediately after
such transaction if the Holder had converted this Note at the Conversion Price
in effect immediately before the effective date of the transaction. Concurrently
with the consummation of such transaction, the person obligated to issue
securities or deliver cash or other assets upon conversion of this Note shall
execute and deliver to the Holder a supplemental Note so providing and further
providing for adjustments which shall be as nearly equivalent as may be
practical to the adjustments provided in this Section 2.6 The successor company
shall mail to the Holder a notice describing the supplemental Note.

                  If securities deliverable upon conversion of this Note, as
provided above, are themselves convertible into the securities of an affiliate
of a corporation formed, surviving or otherwise affected by the merger or other
transaction, that issuer shall join in the supplemental Note which shall so
provide. If this section applies, Section 2.5 does not apply.

                  2.7 (a) Sale of Common Stock Below the Conversion Price. If
after the date hereof, the Company shall (except as hereinafter provided), issue
any shares of Common Stock for a consideration less than the Conversion Price
then in effect, then the Conversion Price upon each such issuance shall be
adjusted to that price (calculated to the nearest one cent) determined by
multiplying the Conversion Price in effective immediately prior to such event by
a fraction:

                                    (i) the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to the issuance
of such additional shares of Common Stock plus the number of shares of Common
Stock which the aggregate consideration for the total number of such additional
shares of Common Stock so issued would purchase at the then effective Conversion
Price, and

                                    (ii) the denominator of which shall be the
number of shares of Common Stock outstanding immediately prior to the issuance
of such additional shares of Common Stock plus the number of such additional
shares of Common Stock so issued.

                      (b) Anything in this Section 2.7 to the contrary
notwithstanding, no adjustment in the Conversion Price shall be made in
connection with:

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<PAGE>

                                    (i) the grant, issuance or exercise of any
Common Stock pursuant to the Company's qualified or non-qualified employee stock
option plans or any other bona fide employee benefit plan or incentive
arrangement, adopted or approved by the Company's Board of Directors or approved
by the Company's shareholders, as they may be amended from time to time, or
under any other bona fide employee benefit plan hereafter adopted by the
Company's Board of Directors;

                                    (ii) the grant, issuance or exercise of any
Common Stock in connection with the hire or retention of any officer, director
or key employee of the Company, provided such grant is approved by the Company's
Board of Directors;

                                    (iii) the issuance of any shares of Common
Stock pursuant to the grant or exercise of convertible securities outstanding as
of the date hereof; or

                                    (iv) shares issued, subdivided or combined
in transactions described in Section 2.5 if and to the extent that the number of
shares of Common Stock received upon conversion of this Note shall have been
previously adjusted pursuant to Section 2.5 as a result of such issuance,
subdivision or combination of such securities.

                      (c) For purposes of this Section 2.7, the following
provisions shall also be applied:

                                    (i) In case of the issuance or sale of
additional shares of Common Stock for cash, the consideration received by the
Company therefor shall be deemed to be the amount of cash received by the
Company for such shares, before deducting therefrom any commissions,
compensation or other expenses paid or incurred by the Company for any
underwriting of, or otherwise in connection with, the issuance or sale of such
shares.

                                    (ii) In the case of the issuance of shares
of Common Stock for a consideration in whole or in part, other than cash, the
consideration other than cash shall be deemed to be the current market price
thereof as reasonably determined in good faith by the Board of Directors of the
Company (irrespective of accounting treatment thereof); provided, however, that
if such consideration consists of the cancellation of debt issued by the
Company, the consideration shall be deemed to be the amount the Company received
upon issuance of such debt (gross proceeds) plus accrued interest and, in the
case of original issue discount or zero coupon indebtedness, accrued value to
the date of such cancellation.

                                    (iii) In case of the issuance of additional
shares of Common Stock upon the conversion or exchange of any obligations, the
amount of the consideration received by the Company for such Common Stock shall
be deemed to be the consideration received by the Company for such obligations
or shares so converted or exchanged, before deducting from such consideration so
received by the Company any expenses or commissions or compensation incurred or
paid by the Company for any underwriting of, or otherwise in connection with,
the issuance or sale of such obligations or shares, plus any consideration
received by the Company in connection with such conversion or exchange. If
obligations or

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<PAGE>

shares of the same class or series of a class as the obligations or shares so
converted or exchanged have been originally issued for different amounts of
consideration, then the amount of consideration received by the Company upon the
original issuance of each of the obligations or shares so converted or exchanged
shall be deemed to be the average amount of the consideration received by the
Company upon the original issuance of all such obligations or shares.

                      (d) Anything in this Section 2.7 to the contrary
notwithstanding, no adjustment in the Conversion Price shall be required unless
such adjustment would require an increase or decrease of at least $0.15 in such
Conversion Price; provided, however, that any adjustments which by reason of
this subsection 2.7(d) are not required to be made shall be carried forward and
taken into account in making subsequent adjustments.

                  2.8 Notice to Holder. If, at any time while this Note is
outstanding, the Company shall pay any dividend payable in cash or in Common
Stock, shall offer to the holders of its Common Stock for subscription or
purchase by them any shares of stock of any class or any other rights, shall
enter into an agreement to merge or consolidate with another corporation, shall
propose any capital reorganization or reclassification of the capital stock of
the Company, including any subdivision or combination of its outstanding shares
of Common Stock or there shall be contemplated a voluntary or involuntary
dissolution, liquidation or winding up of the Company, the Company shall cause
notice thereof to be mailed to the registered Holder of this Note at its address
appearing on the registration books of the Company, at least thirty (30) days
prior to the record date as of which holders of Common Stock shall participate
in such dividend, distribution or subscription or other rights or at least
thirty (30) days prior to the effective date of the merger, consolidation,
reorganization, reclassification or dissolution.

                                   ARTICLE III

                                  SUBORDINATION

                  3.1. Agreement to Subordinate. The Company agrees, and each
Holder by accepting this Note agrees, that the indebtedness evidenced by this
Note is subordinated in right of payment, to the extent and in the manner
provided in this Article III, to the prior payment in full of all Senior
Indebtedness, and that the subordination is for the benefit of the holders of
Senior Indebtedness (as defined below).

                  3.2 Company Not to Make Payment With Respect to Note in
Certain Circumstances.

                      (a) Upon the maturity of any Senior Indebtedness by lapse
of time, acceleration or otherwise, all principal thereof and interest thereon
and any other amounts owing in respect thereof shall first be paid in full, or
such payment duly provided for in cash or in a manner satisfactory to the
holders of such Senior Indebtedness before any payment is made on account of the
principal or interest on this Note or to acquire this Note.

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<PAGE>

                      (b) Upon the occurrence of an event of default (or if any
event of default would result upon any payment upon or with respect to this
Note) with respect to any Senior Indebtedness as such event of default is
defined therein or in the instrument under which it is outstanding, in payment
of the principal or interest on or any other amount owing in respect of such
Senior Indebtedness, (and, if the default is other than default in payment of
the principal or interest on or any other amount owing in respect of such Senior
Indebtedness, upon written notice thereof given to the Company by the holders of
Senior Indebtedness), then, unless (i) such an event of default shall have been
cured or waived or shall have ceased to exist or (ii) the Company receives
written notice from the holder of the Senior Indebtedness with respect to which
such event of default relates approving payment on this Note, no payment shall
be made by the Company with respect to the principal or interest on this Note or
to acquire this Note; provided that no such default will prevent any payment on,
or in respect of, this Note for more than 90 days unless the maturity of such
Senior Indebtedness has been accelerated. Not more than one such 90 day delay
may be made in any consecutive 360 day period, irrespective of the number of
defaults with respect to Senior Indebtedness during such period.

                  3.3 Senior Indebtedness. "Senior Indebtedness" means the
principal of, premium, if any, and interest, fees and costs under, the Loan and
Security Agreement dated February 26, 1999 by and between Summit
Commercial/Gibralter Corp. and Relm Communications, Inc., Relm Wireless
Corporation and RXD, Inc., as amended from time to time (the "Loan Agreement"),
and any documents or agreements executed in connection with the Loan Agreement
(such documents together with the Loan Agreement are hereinafter referred to as
the "Loan Documents"), and all increases, deferrals, replacements, extensions,
renewals, refundings, or refinancings thereof.

                  3.4 Payments Improperly Received. In the event that any
payment (including any pre-payment) on account of principal of or interest on
this Note shall be received by any Holder of this Note before all Senior
Indebtedness is paid in full, and at a time when the Company shall be prohibited
from making such payment(s) by Article III hereof, such payment(s) shall be held
in trust by such Holder for the benefit of and shall be paid over to the holder
of the Senior Indebtedness to the extent necessary to make payment in full of
the Senior Indebtedness (including, without limitation, principal, interest at
the applicable rate specified in the Loan Agreement, and any other sums due and
owing under the Loan Agreement or any of the other Loan Documents, whether or
not such sums are an allowable claim in any bankruptcy proceeding).

                                   ARTICLE IV

                                  MISCELLANEOUS

                  4.1 Default. If one or more of the following described events
(each of which being an "Event of Default" hereunder) shall occur and shall be
continuing,

                      (a) any of the representations, covenants, or warranties
made by the Company herein shall have been incorrect when made in any material
respect; or

                                       8

<PAGE>

                      (b) the Company shall breach, fail to perform, or fail to
observe in any material respect any material covenant, term, provision,
condition, agreement or obligation of the Company under this Note (or any
security of the Company held by the Holder), and such breach or failure to
perform shall not be cured within thirty (30) days after written notice to the
Company; or

                      (c) a trustee, liquidator or receiver shall be appointed
for the Company or for a substantial part of its property or business without
its consent and shall not be discharged within thirty (30) calendar days after
such appointment; or

                      (d) any governmental agency or any court of competent
jurisdiction at the instance of any governmental agency shall assume custody or
control of the whole or any substantial portion of the properties or assets of
the Company and shall not be dismissed within thirty (30) calendar days
thereafter; or

                      (e) bankruptcy, reorganization, insolvency or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Company and, if
instituted against the Company, Company shall by any action or answer approve
of, consent to or acquiesce in any such proceedings or admit the material
allegations of, or default in answering a petition filed in any such proceeding
or such proceedings shall not be dismissed within thirty (30) calendar days
thereafter; or

                      (f) the Company shall have failed to pay interest within
five business days of when due hereunder and/or principal within three business
days of when due hereunder; in each case, after receipt of written notice of
such payment default; or

                      (g) the Company shall have failed to timely deliver shares
of Common Stock issuable upon conversion of this Note pursuant to the terms of
this Note;

then, or at any time thereafter, and in each and every such case, unless such
Event of Default shall have been waived in writing by the Holder (which waiver
shall not be deemed to be a waiver of any subsequent default) or cured as
provided herein, at the option of the Holder, and in the Holder's sole
discretion, the Holder may consider the entire principal amount of this Note
(and all interest through such date) immediately due and payable in cash,
without presentment, demand protest or notice of any kind, all of which are
hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and Holder may immediately, and
without expiration of any period of grace, enforce any and all of the Holder's
rights and remedies provided herein or any other rights or remedies afforded by
law (including but not limited to consequential damages if any). It is agreed
that in the event of such action, the Holder shall be entitled to receive all
reasonable fees, costs and expenses incurred, including without limitation such
reasonable fees and expenses of attorneys. Nothing contained herein shall limit
the rights of the Holder to collect liquidated damages as provided herein or in
any other agreement entered into between the Holder and the Company, or any
other damages that the Holder may otherwise be entitled to under the terms of
this Note.

                                       9

<PAGE>

                  4.2 Collection Costs. In the event that this Note shall be
placed in the hands of an attorney for collection by reason of any Event of
Default hereunder, the undersigned agrees to pay reasonable attorney's fees and
disbursements and other reasonable expenses incurred by the Holder in connection
with the collection of this Note.

                  4.3 Rights Cumulative. The rights, powers and remedies given
to the Holder under this Note shall be in addition to all rights, powers and
remedies given to it by virtue of any document or instrument executed in
connection therewith, or any statute or rule of law.

                  4.4 No Waivers. Any forbearance, failure or delay by the Payee
in exercising any right, power or remedy under this Note, any documents or
instruments executed in connection therewith or otherwise available to the
Holder shall not be deemed to be a waiver of such right, power or remedy, nor
shall any single or partial exercise of any right, power or remedy preclude the
further exercise thereof.

                  4.5 Amendments in Writing. No modification or waiver of any
provision of this Note, or any documents or instruments executed in connection
therewith shall be effective unless it shall be in writing and signed by the
Holder, and any such modification or waiver shall apply only in the specific
instance for which given.

                  4.6 Governing Law. This Note and the rights and obligations of
the parties hereto, shall be governed, construed and interpreted according to
the laws of the State of New York, without giving effect to its conflicts of
laws rules wherein it was negotiated and executed, and the undersigned consents
and agrees that the State and Federal Courts which sit in the State of New York,
County of New York shall have exclusive jurisdiction of all controversies and
disputes arising hereunder.

                  4.7 No Counterclaims. The undersigned waives the right to
interpose counterclaims or set-offs of any kind and description in any
litigation arising hereunder and waives the right in any litigation with the
Payee (whether or not arising out of or relating to this Note) to trial by jury.

                  4.8 Successors. The term "Payee" and "Holder" as used herein
shall be deemed to include the Payee and its successors, endorsees and assigns.

                  4.9 Stamp Tax. The Company will pay any documentary stamp
taxes attributable to the initial issuance of the Common Stock issuable upon the
conversion of this Note; provided, however, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for the Common Stock in
a name other than that of the Holder in respect of which such Common Stock is
issued, and in such case the Company shall not be required to issue or deliver
any certificate for the Common Stock until the person requesting the same has
paid to the Company the amount of such tax or has established to the Company's
satisfaction that such tax has been paid.

                                       10

<PAGE>

                  4.10 Mutilated, Lost, Stolen or Destroyed Notes. In case this
Note shall be mutilated, lost, stolen or destroyed, the Company shall issue and
deliver in exchange and substitution for and upon cancellation of the mutilated
Note, or in lieu of and substitution for the Note, mutilated, lost, stolen or
destroyed, a new Note of like tenor and representing an equivalent right or
interest, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and an indemnity, if requested, also
reasonably satisfactory to it.

                  4.11 No Rights as Shareholders. Nothing contained in this Note
shall be construed as conferring upon the Holder the right to vote or to receive
dividends (except as provided in Section 2.5 of this Note) or to consent or to
receive notice as a shareholder in respect of any meeting of shareholders for
the election of directors of the Company or of any other matter, or any rights
whatsoever as shareholders of the Company.

                  IN WITNESS WHEREOF, Relm Wireless Corporation has caused this
Note to be signed by its President and to be dated the day and year first above
written.

ATTEST [SEAL]                                        RELM WIRELESS CORPORATION

________________________________            By:_________________________________
                                               Name:
                                               Title:

                                       11

<PAGE>

                                  ATTACHMENT I

                                   Assignment

         For value received, the undersigned hereby assigns to ______________
$________________ principal amount of the 8% Convertible Subordinated Promissory
Note due December 31, 2004 evidenced hereby and hereby irrevocably appoints
_______________ attorney to transfer the Note on the books of the within named
corporation with full power of substitution in the premises.

Dated:

In the presence of:

______________________________

<PAGE>

                                  ATTACHMENT II

                                CONVERSION NOTICE

                          TO: RELM WIRELESS CORPORATION

              The undersigned holder of this Note hereby irrevocably exercises
the option to convert $____________ principal amount of such Note (which may be
less than the stated principal amount thereof) into shares of Common Stock of
Relm Wireless Corporation, in accordance with the terms of such Note, and
directs that the shares of Common Stock issuable and deliverable upon such
conversion, together with a check (if applicable) in payment for any fractional
shares as provided in such Note, be issued and delivered to the undersigned
unless a different name has been indicated below. If shares of Common Stock are
to be issued in the name of a person other than the undersigned holder of such
Note, the undersigned will pay all transfer taxes payable with respect thereto.

                                         ____________________________________
                                              Name and address of Holder

                                         ___________________________________
                                                 Signature of Holder

              Principal amount of Note to be converted $

              If shares are to be issued otherwise then to the holder:

Name of Transferee
                                             Address of Transferee

                                            ____________________________________

                                            ____________________________________

                                            ____________________________________

                                            Social Security Number of Transferee

                                            ____________________________________

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