Document:

Exhibit 4.8

                               SUBSIDIARY GUARANTY

New York, New York                                                April 26, 2004

      FOR VALUE RECEIVED,  and in  consideration  of note purchases from,  loans
made or to be made or credit  otherwise  extended  or to be  extended  by Laurus
Master  Fund,  Ltd.  ("Laurus")  to or for the  account of  Conolog  Corporation
("Debtor")  from  time to time and at any time and for other  good and  valuable
consideration and to induce Laurus,  in its discretion,  to purchase such notes,
make such loans or  extensions  of credit  and to make or grant  such  renewals,
extensions,  releases of collateral or relinquishments of legal rights as Laurus
may deem advisable,  each of the undersigned (and each of them if more than one,
the  liability  under  this  Guaranty  being  joint and  several)  (jointly  and
severally  referred to as  "Guarantors " or "the  undersigned")  unconditionally
guaranties to Laurus,  its successors,  endorsees and assigns the prompt payment
when due  (whether  by  acceleration  or  otherwise)  of all  present and future
obligations  and liabilities of any and all kinds of Debtor to Laurus and of all
instruments  of any nature  evidencing or relating to any such  obligations  and
liabilities upon which Debtor or one or more parties and Debtor is or may become
liable to  Laurus,  whether  incurred  by Debtor  as  maker,  endorser,  drawer,
acceptor,  guarantors , accommodation party or otherwise,  and whether due or to
become due, secured or unsecured,  absolute or contingent, joint or several, and
however or whenever  acquired by Laurus,  whether  arising under,  out of, or in
connection with that certain Securities  Purchase Agreement dated as of the date
hereof by and between Debtor and Laurus (the "Securities  Purchase  Agreement");
that certain Secured Convertible Note dated as of the date hereof made by Debtor
in favor of Laurus (the "Note") the Warrant  dated as of the date hereof made by
Debtor in favor of Laurus (the  "Warrant")or  that certain  Registration  Rights
Agreement  dated as of the date  hereof by and  between  Debtor and Laurus  (the
"Registration  Rights Agreement") (the Securities Purchase Agreement,  the Note,
the  Warrant  and the  Registration  Rights  Agreement,  as each may be amended,
modified,  restated or supplemented from time to time, are collectively referred
to herein as the  "Documents"),  or any  documents,  instruments  or  agreements
relating to or executed  in  connection  with the  Documents  or any  documents,
instruments  or  agreements  referred to therein or otherwise  (all of which are
herein collectively  referred to as the "Obligations"),  and irrespective of the
genuineness,  validity,  regularity or enforceability of such Obligations, or of
any instrument  evidencing any of the Obligations or of any collateral  therefor
or of the  existence  or  extent of such  collateral,  and  irrespective  of the
allowability,  allowance or disallowance of any or all of the Obligations in any
case  commenced  by or  against  Debtor  under  Title 11,  United  States  Code,
including,  without  limitation,  obligations  or  indebtedness  of  Debtor  for
post-petition interest,  fees, costs and charges that would have accrued or been
added to the Obligations  but for the  commencement of such case. In furtherance
of the foregoing, the undersigned hereby agrees as follows:

      1. No  Impairment.  Laurus  may at any time and from time to time,  either
before or after the maturity  thereof,  without notice to or further  consent of
the  undersigned,  extend the time of payment  of,  exchange  or  surrender  any
collateral  for, renew or extend any of the  Obligations or increase or decrease
the interest rate thereon,  and may also make any agreement  with Debtor or with
any other party to or person  liable on any of the  Obligations,  or  interested
therein, for the extension,  renewal, payment, compromise,  discharge or release
thereof, in whole or in part, or for any modification of the terms thereof or of
any agreement  between  Laurus and Debtor or any such other party or person,  or
make any election of rights  Laurus may deem  desirable  under the United States
Bankruptcy  Code,  as  amended,  or  any  other  federal  or  state  bankruptcy,
reorganization,  moratorium  or  insolvency  law  relating to or  affecting  the

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enforcement of creditors' rights generally (any of the foregoing, an "Insolvency
Law") without in any way impairing or affecting this Guaranty.  This  instrument
shall  be  effective  regardless  of the  subsequent  incorporation,  merger  or
consolidation of Debtor, or any change in the composition,  nature, personnel or
location of Debtor and shall extend to any successor entity to Debtor, including
a debtor in possession or the like under any Insolvency Law.

      2.  Guaranty  Absolute.  Each of the  undersigned  jointly  and  severally
guarantees  that the  Obligations  will be paid strictly in accordance  with the
terms of the  Documents  and/or  any other  document,  instrument  or  agreement
creating or evidencing  the  Obligations,  regardless of any law,  regulation or
order now or hereafter in effect in any jurisdiction affecting any of such terms
or the rights of Debtor with respect thereto. Guarantors hereby knowingly accept
the full range of risk  encompassed  within a contract of "continuing  guaranty"
which risk  includes  the  possibility  that  Debtor  will  contract  additional
indebtedness  for  which  Guarantors  may be  liable  hereunder  after  Debtor's
financial  condition  or ability to pay its lawful  debts when they fall due has
deteriorated,  whether or not  Debtor has  properly  authorized  incurring  such
additional   indebtedness.   The  undersigned   acknowledge  that  (i)  no  oral
representations, including any representations to extend credit or provide other
financial  accommodations  to  Debtor,  have been  made by Laurus to induce  the
undersigned  to enter into this Guaranty and (ii) any extension of credit to the
Debtor  shall  be  governed  solely  by the  provisions  of the  Documents.  The
liability of each of the  undersigned  under this Guaranty shall be absolute and
unconditional,  in accordance with its terms, and shall remain in full force and
effect  without  regard to, and shall not be  released,  suspended,  discharged,
terminated or otherwise affected by, any circumstance or occurrence  whatsoever,
including,  without limitation: (a) any waiver, indulgence,  renewal, extension,
amendment or modification  of or addition,  consent or supplement to or deletion
from or any other action or inaction under or in respect of the Documents or any
other instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof,  (b) any lack of validity or enforceability of any Loan
Document  or  other  documents,   instruments  or  agreements  relating  to  the
Obligations or any assignment or transfer of any thereof,  (c) any furnishing of
any additional  security to Laurus or its assignees or any acceptance thereof or
any release of any security by Laurus or its  assignees,  (d) any  limitation on
any party's  liability or obligation under the Documents or any other documents,
instruments  or  agreements  relating to the  Obligations  or any  assignment or
transfer of any thereof or any  invalidity or  unenforceability,  in whole or in
part, of any such document, instrument or agreement or any term thereof, (e) any
bankruptcy, insolvency,  reorganization,  composition,  adjustment, dissolution,
liquidation  or other like  proceeding  relating to Debtor,  or any action taken
with respect to this  Guaranty by any trustee or receiver,  or by any court,  in
any such  proceeding,  whether  or not the  undersigned  shall  have  notice  or
knowledge of any of the foregoing, (f) any exchange, release or nonperfection of
any  collateral,  or any  release,  or  amendment  or  waiver of or  consent  to
departure  from any guaranty or security,  for all or any of the  Obligations or
(g) any other circumstance which might otherwise  constitute a defense available
to, or a discharge of, the undersigned.  Any amounts due from the undersigned to
Laurus  shall bear  interest  until such amounts are paid in full at the highest
rate then  applicable  to the  Obligations.  Obligations  include  post-petition
interest whether or not allowed or allowable.

      3. Waivers.

            (a) This  Guaranty is a guaranty  of payment and not of  collection.
      Laurus shall be under no obligation to institute suit,  exercise rights or
      remedies  or take any other  action  against  Debtor  or any other  person
      liable with respect to any of the  Obligations or

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      resort  to  any  collateral  security  held  by it to  secure  any  of the
      Obligations as a condition precedent to the undersigned being obligated to
      perform as agreed herein and each of the Guarantors  hereby waives any and
      all rights which it may have by statute or otherwise  which would  require
      Laurus to do any of the foregoing. Each of the Guarantors further consents
      and agrees that Laurus shall be under no  obligation to marshal any assets
      in favor of  Guarantors,  or  against  or in  payment of any or all of the
      Obligations. The undersigned hereby waives all suretyship defenses and any
      rights to interpose any defense,  counterclaim or offset of any nature and
      description  which the undersigned may have or which may exist between and
      among  Laurus,   Debtor  and/or  the  undersigned   with  respect  to  the
      undersigned's  obligations under this Guaranty, or which Debtor may assert
      on  the  underlying  debt,   including  but  not  limited  to  failure  of
      consideration, breach of warranty, fraud, payment (other than cash payment
      in full of the  Obligations),  statute  of  frauds,  bankruptcy,  infancy,
      statute of limitations, accord and satisfaction, and usury.

            (b)  Each  of the  undersigned  further  waives  (i)  notice  of the
      acceptance of this Guaranty, of the making of any such loans or extensions
      of  credit,  and of all  notices  and  demands  of any kind to  which  the
      undersigned  may be entitled,  including,  without  limitation,  notice of
      adverse change in Debtor's financial  condition or of any other fact which
      might materially increase the risk of the undersigned and (ii) presentment
      to or demand of payment  from  anyone  whomsoever  liable  upon any of the
      Obligations,  protest, notices of presentment,  non-payment or protest and
      notice of any sale of collateral security or any default of any sort.

            (c)  Notwithstanding any payment or payments made by the undersigned
      hereunder,  or any setoff or  application  of funds of the  undersigned by
      Laurus,  the undersigned  shall not be entitled to be subrogated to any of
      the rights of Laurus against Debtor or against any collateral or guarantee
      or right of offset held by Laurus for the payment of the Obligations,  nor
      shall the  undersigned  seek or be  entitled to seek any  contribution  or
      reimbursement  from Debtor in respect of payments made by the  undersigned
      hereunder,  until all amounts  owing to Laurus by Debtor on account of the
      Obligations are paid in full and the Documents have been  terminated.  If,
      notwithstanding the foregoing, any amount shall be paid to the undersigned
      on  account  of  such  subrogation  rights  at any  time  when  all of the
      Obligations  shall not have been paid in full and the Documents  shall not
      have been  terminated,  such amount  shall be held by the  undersigned  in
      trust for  Laurus,  segregated  from other funds of the  undersigned,  and
      shall  forthwith  upon,  and in any event within two (2) business days of,
      receipt  by the  undersigned,  be turned  over to Laurus in the exact form
      received by the  undersigned  (duly endorsed by the undersigned to Laurus,
      if required),  to be applied against the  Obligations,  whether matured or
      unmatured,  in  such  order  as  Laurus  may  determine,  subject  to  the
      provisions  of the  Documents.  Any and all present  and future  debts and
      obligations  of Debtor to any of the  undersigned  are  hereby  waived and
      postponed  in  favor  of,  and   subordinated  to  the  full  payment  and
      performance  of, all present and future debts and obligations of Debtor to
      Laurus.

      4. Security. All sums at any time to the credit of the undersigned and any
property of the  undersigned  in Laurus'  possession or in the possession of any
bank, financial institution or other entity that directly or indirectly, through
one or more  intermediaries,  controls or is  controlled  by, or is under common
control with, Laurus (each such entity, an "Affiliate")  shall be deemed held by
Laurus or such Affiliate, as the case may be, as security for any and all of the

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undersigned's  obligations  to Laurus and to any Affiliate of Laurus,  no matter
how or when arising and whether under this or any other instrument, agreement or
otherwise.  Notwithstanding  anything  to the  contrary  contained  herein,  the
security interest granted to Laurus shall be limited to goods (including but not
limited to equipment and expressly excluding inventory) of the undersigned.

      5. Representations and Warranties.  Each of the undersigned  respectively,
hereby   jointly  and   severally   represents   and  warrants   (all  of  which
representations   and  warranties   shall  survive  until  all  Obligations  are
indefeasibly   satisfied  in  full  and  the  Documents  have  been  irrevocably
terminated), that:

            (a)  Corporate  Status.   The  undersigned  is  a  corporation  duly
      organized,  validly  existing and in good  standing  under the laws of the
      state of incorporation indicated on the signature page hereof and has full
      power,  authority  and legal right to own its  property  and assets and to
      transact the business in which it is engaged.

            (b)  Authority  and  Execution.  The  undersigned  has  full  power,
      authority  and legal  right to execute  and  deliver,  and to perform  its
      obligations under, this Guaranty and has taken all necessary corporate and
      legal action to authorize the execution,  delivery and performance of this
      Guaranty.

            (c) Legal,  Valid and Binding Character.  This Guaranty  constitutes
      the legal, valid and binding obligation of the undersigned  enforceable in
      accordance  with its  terms,  except as  enforceability  may be limited by
      applicable  bankruptcy,  insolvency,  reorganization,  moratorium or other
      laws of general application affecting the enforcement of creditor's rights
      and  general  principles  of equity  that  restrict  the  availability  of
      equitable or legal remedies.

            (d)  Violations.  The  execution,  delivery and  performance of this
      Guaranty  will  not  violate  any  requirement  of law  applicable  to the
      undersigned or any material contract, agreement or instrument to which the
      undersigned is a party or by which the  undersigned or any property of the
      undersigned  is bound or  result  in the  creation  or  imposition  of any
      mortgage,  lien or other  encumbrance  other  than to Laurus on any of the
      property or assets of the undersigned pursuant to the provisions of any of
      the foregoing.

            (e) Consents or Approvals.  No consent of any other person or entity
      (including,  without  limitation,  any creditor of the undersigned) and no
      consent,  license,  permit,  approval or  authorization  of, exemption by,
      notice or report to, or  registration,  filing or  declaration  with,  any
      governmental  authority  is required  in  connection  with the  execution,
      delivery, performance, validity or enforceability of this Guaranty.

            (f)  Litigation.  No  litigation,   arbitration,   investigation  or
      administrative   proceeding   of  or  before  any  court,   arbitrator  or
      governmental  authority,  bureau or agency is currently pending or, to the
      best  knowledge of the  undersigned,  threatened  (i) with respect to this
      Guaranty or any of the transactions  contemplated by this Guaranty or (ii)
      against or affecting the undersigned,  or any of property or assets of the
      undersigned, which, if adversely determined, would have a material adverse
      effect on the  business,  operations,  assets or  condition,  financial or
      otherwise, of the undersigned.

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            (g)  Financial  Benefit.  Each of the  undersigned  has  derived  or
      expects to derive a financial or other advantage from each and every loan,
      advance  or  extension  of  credit  made  under  the  Documents  or  other
      Obligation incurred by Debtor to Laurus.

      6. Acceleration.

            (a) If any breach of any  covenant  or  condition  or other event of
      default shall occur and be continuing  under any agreement  made by Debtor
      or any of the  undersigned  to  Laurus,  or  either  Debtor  or any of the
      undersigned  should  at any  time  become  insolvent,  or  make a  general
      assignment,  or if a proceeding  in or under any  Insolvency  Law shall be
      filed or commenced by, or in respect of, any of the  undersigned,  or if a
      notice of any lien, levy, or assessment is filed of record with respect to
      any assets of any of the  undersigned  by the United  States of America or
      any department,  agency, or  instrumentality  thereof,  or if any taxes or
      debts owing at any time or times  hereafter  to any one of them  becomes a
      lien  or  encumbrance  upon  any  assets  of the  undersigned  in  Laurus'
      possession,  or  otherwise,  any and all  Obligations  shall for  purposes
      hereof,  at Laurus'  option,  be deemed  due and  payable  without  notice
      notwithstanding  that any such  Obligation  is not then due and payable by
      Debtor.

            (b) Each of the  undersigned  will  promptly  notify  Laurus  of any
      default by such undersigned in its respective performance or observance of
      any term or condition of any agreement to which the undersigned is a party
      if the  effect of such  default  is to cause,  or permit the holder of any
      obligation  under such agreement to cause,  such  obligation to become due
      prior to its stated  maturity and, if such an event  occurs,  Laurus shall
      have the right to accelerate such undersigned's obligations hereunder.

      7. Payments from Guarantors.  Laurus, in its sole and absolute discretion,
with  or  without  notice  to the  undersigned,  may  apply  on  account  of the
Obligations any payment from the undersigned or any other guarantors, or amounts
realized from any security for the Obligations,  or may deposit any and all such
amounts realized in a non-interest bearing cash collateral deposit account to be
maintained as security for the Obligations.

      8.  Costs.  The  undersigned  shall pay on  demand,  all  costs,  fees and
expenses  (including  expenses  for legal  services of every  kind)  relating or
incidental to the enforcement or protection of the rights of Laurus hereunder or
under any of the Obligations.

      9. No  Termination.  This is a continuing  irrevocable  guaranty and shall
remain in full force and effect and be binding upon the undersigned, and each of
the undersigned's successors and assigns, until all of the Obligations have been
paid in full and the Documents have been irrevocably  terminated.  If any of the
present  or future  Obligations  are  guarantied  by  persons,  partnerships  or
corporations in addition to the undersigned,  the death, release or discharge in
whole  or in  part  or the  bankruptcy,  merger,  consolidation,  incorporation,
liquidation  or dissolution of one or more of them shall not discharge or affect
the liabilities of any undersigned under this Guaranty.

      10. Recapture.  Anything in this Guaranty to the contrary notwithstanding,
if Laurus  receives  any  payment or  payments  on  account  of the  liabilities
guaranteed   hereby,   which  payment  or  payments  or  any  part  thereof  are
subsequently invalidated,  declared to be fraudulent or preferential,  set aside
and/or  required to be repaid to a trustee,  receiver,  or any other party under
any Insolvency Law, common law or equitable doctrine,  then to the extent of any
sum not

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finally  retained by Laurus,  the  undersigned's  obligations to Laurus shall be
reinstated  and this  Guaranty  shall  remain in full  force and  effect  (or be
reinstated) until payment shall have been made to Laurus, which payment shall be
due on demand.

      11. Books and Records. The books and records of Laurus showing the account
between  Laurus and Debtor  shall be  admissible  in  evidence  in any action or
proceeding,   shall  be  binding  upon  the   undersigned  for  the  purpose  of
establishing  the items therein set forth and shall constitute prima facie proof
thereof.

      12. No Waiver. No failure on the part of Laurus to exercise,  and no delay
in exercising,  any right,  remedy or power  hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by Laurus of any right, remedy
or power  hereunder  preclude  any other or future  exercise  of any other legal
right, remedy or power. Each and every right, remedy and power hereby granted to
Laurus or  allowed  it by law or other  agreement  shall be  cumulative  and not
exclusive of any other, and may be exercised by Laurus at any time and from time
to time.

      13. Waiver of Jury Trial.  EACH OF THE UNDERSIGNED DOES HEREBY  KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY  WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING  BASED ON OR WITH RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS
CONTEMPLATED  HEREBY OR RELATING OR  INCIDENTAL  HERETO.  THE  UNDERSIGNED  DOES
HEREBY  CERTIFY  THAT NO  REPRESENTATIVE  OR AGENT OF  LAURUS  HAS  REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT LAURUS WOULD NOT, IN THE EVENT OF LITIGATION,  SEEK
TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.

      14. Governing Law;  Jurisdiction;  Amendments.  THIS INSTRUMENT  CANNOT BE
CHANGED OR TERMINATED ORALLY,  AND SHALL BE GOVERNED,  CONSTRUED AND INTERPRETED
AS TO VALIDITY,  ENFORCEMENT  AND IN ALL OTHER  RESPECTS IN ACCORDANCE  WITH THE
LAWS OF THE STATE OF NEW YORK. EACH OF THE UNDERSIGNED EXPRESSLY CONSENTS TO THE
JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK,  COUNTY OF
NEW YORK, AND OF THE UNITED STATES  DISTRICT COURT FOR THE SOUTHERN  DISTRICT OF
NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING BY THE
UNDERSIGNED AGAINST LAURUS INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM
IN ANY WAY ARISING OUT OF,  RELATED TO OR  CONNECTED  HEREWITH  SHALL BE BROUGHT
ONLY IN THE  SUPREME  COURT OF THE STATE OF NEW YORK,  COUNTY OF NEW YORK OR THE
UNITED  STATES  DISTRICT  COURT  FOR THE  SOUTHERN  DISTRICT  OF NEW  YORK.  THE
UNDERSIGNED  FURTHER  CONSENTS  THAT ANY SUMMONS,  SUBPOENA OR OTHER  PROCESS OR
PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION
TO EITHER OF THE  AFOREMENTIONED  COURTS OR A JUDGE  THEREOF)  OR ANY  NOTICE IN
CONNECTION  WITH ANY PROCEEDINGS  HEREUNDER,  MAY BE SERVED INSIDE OR OUTSIDE OF
THE STATE OF NEW YORK OR THE  SOUTHERN  DISTRICT  OF NEW YORK BY  REGISTERED  OR
CERTIFIED MAIL,  RETURN RECEIPT  REQUESTED,  OR BY PERSONAL  SERVICE  PROVIDED A
REASONABLE  TIME FOR APPEARANCE IS PERMITTED,  OR IN SUCH OTHER MANNER AS MAY BE
PERMISSIBLE UNDER THE RULES OF SAID COURTS.  EACH OF THE UNDERSIGNED  WAIVES ANY
OBJECTION TO JURISDICTION  AND VENUE OF ANY ACTION  INSTITUTED  HEREON AND SHALL
NOT  ASSERT ANY

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DEFENSE  BASED  ON LACK OF  JURISDICTION  OR  VENUE  OR  BASED  UPON  FORUM  NON
CONVENIENS.

      15. Severability. To the extent permitted by applicable law, any provision
of this Guaranty which is prohibited or unenforceable in any jurisdiction shall,
as to such  jurisdiction,  be ineffective  to the extent of such  prohibition or
unenforceability  without  invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

      16. Amendments,  Waivers.  No amendment or waiver of any provision of this
Guaranty nor consent to any departure by the undersigned  therefrom shall in any
event be effective  unless the same shall be in writing  executed by each of the
undersigned and Laurus.

      17. Notice. All notices,  requests and demands to or upon the undersigned,
shall be in writing and shall be deemed to have been duly given or made (a) when
delivered,  if by hand, (b) three (3) days after being sent, postage prepaid, if
by  registered  or certified  mail,  (c) when  confirmed  electronically,  if by
facsimile,  or (d) when delivered, if by a recognized overnight delivery service
in each event,  to the numbers and/or address set forth beneath the signature of
the undersigned.

      18.  Successors.  Laurus  may,  from time to time,  without  notice to the
undersigned,  sell, assign,  transfer or otherwise dispose of all or any part of
the  Obligations  and/or  rights  under  this  Guaranty.  Without  limiting  the
generality of the foregoing,  Laurus may assign, or grant participations to, one
or more banks,  financial  institutions or other entities all or any part of any
of the  Obligations.  In each such event,  Laurus,  its  Affiliates and each and
every immediate and successive purchaser,  assignee, transferee or holder of all
or any part of the Obligations shall have the right to enforce this Guaranty, by
legal action or  otherwise,  for its own benefit as fully as if such  purchaser,
assignee,  transferee  or holder  were  herein by name  specifically  given such
right.  Laurus shall have an  unimpaired  right to enforce this Guaranty for its
benefit  with respect to that  portion of the  Obligations  which Laurus has not
disposed of, sold, assigned, or otherwise transferred.

      19. Release.  Nothing except cash payment in full of the Obligations shall
release any of the undersigned from liability under this Guaranty.

                        [Remainder of this page is blank.
                       Signature page immediately follows]

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         IN WITNESS WHEREOF, this Guaranty has been executed by the undersigned
this __ day of April 26, 2003.

                                     NOLOGOC CORP.

                                     By:       _________________________________

                                     Name:     _________________________________

                                     Title:    _________________________________

                                     Address:

                                     Telephone:
                                     Facsimile:
                                     State of Incorporation:      New Jersey

                                               _________________________________

                                               _________________________________

                                               _________________________________

                                                     ___________________________

                                                     ___________________________

                                                     ___________________________

                                                     ___________________________

                                               _________________________________

                                               _________________________________

                                               _________________________________

                                                     ___________________________

                                                     ___________________________

                                                     ___________________________

                                                     ___________________________

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STATE OF _____________     )
                           ) SS
COUNTY OF ____________     )

      On  the  ____  day  of  February  ,  2004,   before  me  personally   came
___________________________________________  to me  known,  who being by me duly
sworn, did depose and say s/he is the ______________ of ___________________  the
corporation described in and which executed the foregoing  instrument;  and that
s/he signed  her/his  name  thereto by order of the board of  directors  of said
corporation.

                                    ____________________________________________

                                    ____________________________________________

                                                  Notary Public

                                    My Commission Expires:

                                                          ______________________

                                       9Exhibit 4.9

                             FUNDS ESCROW AGREEMENT

      This  Agreement is dated as of the 26th day of April,  2004 among  Conolog
Corporation, a Delaware corporation (the "Company") and Laurus Master Fund, Ltd.
(the "Purchaser"), and Dechert LLP (the "Escrow Agent"):

                              W I T N E S S E T H:
                              - - - - - - - - - -

      WHEREAS,  the Company and the  Purchaser  have  entered  into a Securities
Purchase  Agreement  ("Purchase  Agreement")  for the sale by the Company to the
Purchaser  of a secured  convertible  term note ("Term  Note") and issuance of a
common stock purchase warrants  ("Warrants") to the Purchaser,  in the aggregate
principal amounts and in the denominations set forth on Schedule A hereto; and

      WHEREAS,  the  parties  hereto  require  the  Company to deliver the notes
against  payment  therefor,  with such notes and payment to be  delivered to the
Escrow Agent to be held in escrow and released by the Escrow Agent in accordance
with the terms and conditions of this Agreement; and

      WHEREAS,  the Escrow Agent is willing to serve as escrow agent pursuant to
the terms and conditions of this Agreement;

      NOW THEREFORE, the parties agree as follows:

                                    ARTICLE I

                                 INTERPRETATION

      1.1.  Definitions.  Whenever used in this  Agreement,  the following terms
shall have the meanings  set forth below.  Terms not  otherwise  defined  herein
shall have the meaning set forth in the Purchase Agreement.

            (a)   "Agreement"  means  this  Agreement  and all  amendments  made
                  hereto and thereto by written agreement between the parties.

            (b)   "Company  Documents" means the Securities  Purchase Agreement,
                  the Term Note, Term Note Registration  Rights Agreement,  Term
                  Note

                                       1
<PAGE>

                  Warrant,   the  Company   Security   Agreement,   the  Company
                  Subsidiary Security Agreement,  the Subsidiary Guaranty, Stock
                  Pledge Agreement, the Legal Opinion and the Closing Payment.

            (c)   "Closing Payment " means the fees to be paid to Laurus Capital
                  Management LLC set forth on Schedule A hereto.

            (d)   "Disbursement  Letter" means that certain letter  delivered to
                  the  Escrow  Agent by each of the  Purchaser  and the  Company
                  setting  forth wire  instructions  and amounts to be funded at
                  the Closing.

            (e)   "Company  Security  Agreement"  means  that  certain  Security
                  Agreement  delivered by the Company pursuant to the Securities
                  Purchase Agreement.

            (f)   "Company  Subsidiary  Security  Agreement"  means that certain
                  Subsidiary   Security  Agreement   delivered  by  the  Company
                  pursuant to the Securities Purchase Agreement.

            (g)   "Company  Subsidiary  Guaranty " means that certain Subsidiary
                  Guaranty  delivered  by  each of the  Company's  subsidiairies
                  pursuant to the Securities Purchase Agreement.

            (h)   "Escrowed Payment" means $1,200,000.

            (i)   "Legal  Opinion"  means  the  original  signed  legal  opinion
                  of___________.

            (j)   "Purchaser   Documents"  means  the  Escrowed   Payment,   the
                  Securities Purchase  Agreement,  Term Note Registration Rights
                  Agreement and the Disbursement Letter.

            (k)   "Term  Note"  means the  convertible  term note of the Company
                  issued to the  Purchaser  in the amount of  $1,200,000  in the
                  form  of  Exhibit  A  annexed  to  the   Securities   Purchase
                  Agreement.

            (l)   "Term Note  Registration  Rights Agreement" means that certain
                  registration  rights agreement executed and delivered pursuant
                  to the Securities Purchase Agreement.

                                       2
<PAGE>

            (m)   "Term Note Warrant" means the common stock purchase warrant of
                  the Company to purchase up to 270,0000 shares of the Company's
                  common stock,  issued to Purchaser in connection with the Term
                  Note.

            (n)   "Stock  Pledge  Agreement"  means that  certain  stock  pledge
                  agreement  dated as of the date hereof between the Company and
                  the Purchaser.

      1.2. Entire  Agreement.  This Agreement  constitutes the entire  agreement
between the  parties  hereto with  respect to the matters  contained  herein and
pertaining to the Company  Documents and Purchaser  Documents and supersedes all
prior agreements,  understandings,  negotiations and discussions of the parties,
whether  oral or written.  There are no  warranties,  representations  and other
agreements  made by the parties in  connection  with the subject  matter  hereof
except as specifically set forth in this Agreement.

      1.3.  Extended  Meanings.  In this Agreement  words importing the singular
number include the plural and vice versa;  words importing the masculine  gender
include  the  feminine  and  neuter  genders.  The  word  "person"  includes  an
individual,  body  corporate,  partnership,  trustee or trust or  unincorporated
association, executor, administrator or legal representative.

      1.4.  Waivers and  Amendments.  This  Agreement may be amended,  modified,
superseded,  cancelled, renewed or extended, and the terms and conditions hereof
may be waived,  only by a written  instrument signed by all parties,  or, in the
case  of a  waiver,  by the  party  entitled  to  the  benefit  thereof  waiving
compliance. Except as expressly stated herein, no delay on the part of any party
in exercising any right, power or privilege  hereunder shall operate as a waiver
thereof,  nor shall any waiver on the part of any party of any  right,  power or
privilege  hereunder  preclude any other or future  exercise of any other right,
power or privilege hereunder.

      1.5.  Headings.  The division of this Agreement  into articles,  sections,
subsections  and paragraphs and the insertion of headings are for convenience of
reference only and shall not affect the construction or  interpretation  of this
Agreement.

      1.6. Law Governing this Agreement. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard to
principles  of conflicts of laws.  Any action  brought by any party  against any
other party concerning the transactions  contemplated by this Agreement shall be
brought only in the state courts of New York or in the federal courts located in
the state of New York. Each of the parties hereto and the individuals  executing
this Agreement and other  agreements on behalf of the Company agree to submit to
the  jurisdiction  of such courts and waive trial by jury. The prevailing  party
shall be entitled to recover from the other party its reasonable attorney's fees
and  costs.  In the event  that

                                       3
<PAGE>

any provision of this Agreement or any other  agreement  delivered in connection
herewith is invalid or  unenforceable  under any  applicable  statute or rule of
law, then such provision  shall be deemed  inoperative to the extent that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any such provision which may prove invalid or  unenforceable  under
any law shall not affect the validity or  enforceability  of any other provision
of any agreement.

      1.7. Consent to Jurisdiction.  Subject to Section 1.6 hereof,  each of the
Company,  the Escrow Agent and the Purchaser  hereby  waives,  and agrees not to
assert  in any  such  suit,  action  or  proceeding,  any  claim  that it is not
personally  subject to the jurisdiction of such court,  that the suit, action or
proceeding  is brought in an  inconvenient  forum or that the venue of the suit,
action or proceeding is improper.  Nothing in this Section shall affect or limit
any right to serve process in any other manner permitted by law.

      1.8.  Construction.   Each  party  acknowledges  that  its  legal  counsel
participated  in the  preparation of this Agreement and,  therefore,  stipulates
that the rule of construction  that  ambiguities are to be resolved  against the
drafting party shall not be applied in the  interpretation  of this Agreement to
favor any party against any other.

                                   ARTICLE II

                         DELIVERIES TO THE ESCROW AGENT

      2.1.  Delivery of Company  Documents to Escrow Agent. On or about the date
hereof,  the Company  shall  deliver to the Escrow  Agent the Company  Documents
executed by the Company to the extent it is a party thereto.

      2.2 Delivery of Purchaser  Documents to Escrow Agent. On or about the date
hereof, the Purchaser shall deliver to the Escrow Agent the Purchaser  Documents
executed by the Purchaser.

      2.3.  Intention to Create  Escrow Over  Company  Documents  and  Purchaser
Documents.  The  Purchaser,  the Company  intend that the Company  Documents and
Purchaser Documents shall be held in escrow by the Escrow Agent pursuant to this
Agreement for their benefit as set forth herein.

      2.4.  Escrow Agent to Deliver Company  Documents and Purchaser  Documents.
The Escrow  Agent shall hold and release the  Company  Documents  and  Purchaser
Documents only in accordance with the terms and conditions of this Agreement.

                                       4
<PAGE>

                                   ARTICLE III

              RELEASE OF COMPANY DOCUMENTS AND PURCHASER DOCUMENTS

      3.1.  Release of Escrow.  Subject to the  provisions  of Section  4.2, the
Escrow  Agent shall  release  the  Company  Documents  and  Purchaser  Documents
pursuant to (a), (b) or (c) below, as follows:

            (a) Upon  receipt by the Escrow Agent of the Company  Documents  and
the  corresponding  Purchaser  Documents,  the Escrow Agent will  simultaneously
release the Company  Documents to the  Purchaser  and release the  corresponding
Purchaser  Documents to the Company except that (i) the Closing  Payment will be
delivered to the fund managers;  and (ii) the reasonable  legal fees for counsel
to the Purchaser, which shall be paid pursuant to Section 2(c) of the Securities
Purchase  Agreement,  will be released to the  Purchaser.  At the request of the
Escrow  Agent,  the Company  each will  provide  written  facsimile  or original
instructions to the Escrow Agent as to the  disposition of all funds  releasable
to the Company.

            (b) Upon receipt by the Escrow Agent of joint  written  instructions
("Joint Instructions") signed by the Company and the Purchaser, it shall deliver
the Company  Documents and Purchaser  Documents in accordance  with the terms of
the Joint Instructions.

            (c) Upon receipt by the Escrow  Agent of a final and  non-appealable
judgment,  order, decree or award of a court of competent jurisdiction (a "Court
Order"),  the Escrow Agent shall  deliver the Company  Documents  and  Purchaser
Documents  in  accordance  with  the  Court  Order.  Any  Court  Order  shall be
accompanied by an opinion of counsel for the party presenting the Court Order to
the Escrow Agent (which  opinion shall be  satisfactory  to the Escrow Agent) to
the effect that the court issuing the Court Order has competent jurisdiction and
that the Court Order is final and non-appealable.

      3.2.  Acknowledgement of Company and Purchaser;  Disputes. The Company and
the  Purchaser  acknowledge  that the only terms and  conditions  upon which the
Company  Documents and  Purchaser  Documents are to be released are set forth in
Articles 3 and 4 of this Agreement. The Company and the Purchaser reaffirm their
agreement to abide by the terms and conditions of this Agreement with respect to
the release of the Company Documents and Purchaser  Documents.  Any dispute with
respect to the release of the Company Documents and Purchaser Documents shall be
resolved  pursuant  to  Section  4.2  or by  agreement  among  the  Company  and
Purchaser.

                                       5
<PAGE>

                                   ARTICLE IV

                           CONCERNING THE ESCROW AGENT

      4.1. Duties and  Responsibilities  of the Escrow Agent. The Escrow Agent's
duties  and  responsibilities  shall  be  subject  to the  following  terms  and
conditions:

            (a) The  Purchaser  and the Company  acknowledge  and agree that the
Escrow  Agent  (i) shall not be  responsible  for or bound by,  and shall not be
required to inquire into whether either the Purchaser or the Company is entitled
to receipt of the Company  Documents  and  Purchaser  Documents  pursuant to any
other  agreement or otherwise;  (ii) shall be obligated only for the performance
of such duties as are specifically  assumed by the Escrow Agent pursuant to this
Agreement; (iii) may rely on and shall be protected in acting or refraining from
acting upon any written notice, instruction,  instrument,  statement, request or
document  furnished  to it  hereunder  and  believed by the Escrow Agent in good
faith to be genuine and to have been signed or presented by the proper person or
party,  without being required to determine the  authenticity  or correctness of
any fact stated  therein or the  propriety  or validity or the service  thereof;
(iv) may assume that any person  purporting to give notice or make any statement
or execute any document in connection  with the provisions  hereof has been duly
authorized to do so; (v) shall not be responsible for the identity, authority or
rights of any person, firm or corporation  executing or delivering or purporting
to execute or deliver this Escrow Agreement or any document deposited  hereunder
or any endorsement  thereon or assignment  thereof;  (vi) shall not be under any
duty to give the property held by Escrow Agent  hereunder any greater  degree of
care than Escrow  Agent gives its own  similar  property;  and (vii) may consult
counsel satisfactory to Escrow Agent, the opinion of such counsel to be full and
complete  authorization and protection in respect of any action taken,  suffered
or omitted by Escrow Agent  hereunder in good faith and in  accordance  with the
opinion of such counsel.

            (b) The Purchaser and the Company  acknowledge that the Escrow Agent
is acting  solely as a  stakeholder  at their  request and that the Escrow Agent
shall not be liable  for any  action  taken by  Escrow  Agent in good  faith and
believed  by  Escrow  Agent to be  authorized  or  within  the  rights or powers
conferred  upon Escrow Agent by this  Agreement.  The Purchaser and the Company,
jointly and severally, agree to indemnify and hold harmless the Escrow Agent and
any of Escrow Agent's partners,  employees,  agents and  representatives for any
action  taken or omitted to be taken by Escrow  Agent or any of them  hereunder,
including the fees of outside  counsel and other costs and expenses of defending
itself against any claim or liability under this  Agreement,  except in the case
of gross  negligence or willful  misconduct on Escrow  Agent's part committed in
its capacity as Escrow Agent under this Agreement.  The Escrow Agent shall owe a
duty only to the  Purchaser  and Company  under this  Agreement  and to no other
person.

                                       6
<PAGE>

            (c) The  Purchaser and the Company  jointly and  severally  agree to
reimburse the Escrow Agent for its reasonable  out-of-pocket expenses (including
counsel fees)  incurred in  connection  with the  performance  of its duties and
responsibilities hereunder.

            (d)  The  Escrow  Agent  may at any  time  resign  as  Escrow  Agent
hereunder by giving five (5) days prior  written  notice of  resignation  to the
Purchaser and the Company.  Prior to the effective  date of the  resignation  as
specified in such  notice,  the  Purchaser  and Company will issue to the Escrow
Agent a Joint  Instruction  authorizing  delivery of the Company  Documents  and
Purchaser  Documents to a substitute  Escrow Agent selected by the Purchaser and
the Company. If no successor Escrow Agent is named by the Purchaser and Company,
the Escrow Agent may apply to a court of competent  jurisdiction in the State of
New York for appointment of a successor Escrow Agent, and to deposit the Company
Documents and Purchaser Documents with the clerk of any such court.

            (e) The Escrow Agent does not have and will not have any interest in
the Company  Documents  and Purchaser  Documents,  but is serving only as escrow
agent, having only possession thereof.

            (f) The Escrow  Agent  shall not be liable  for any action  taken or
omitted  by it in good  faith and  reasonably  believed  by it to be  authorized
hereby or within  the  rights or powers  conferred  upon it  hereunder,  nor for
action taken or omitted by it in good faith,  and in  accordnace  with advice of
counsel (which counsel may be of the Escrow Agent's own choosing), and shall not
be  liable  for any  mistake  of fact or error of  judgement  or for any acts or
omissions of any kind except for its own willful misconduct or gross negligence.

            (g) This Agreement sets forth  exclusively  the duties of the Escrow
Agent  with  respect to any and all  matters  pertinent  thereto  and no implied
duties or obligations shall be read into this Agreement.

            (h) The Escrow  Agent shall be  permitted  to act as counsel for the
Purchaser  or the  Company,  as the  case  may  be,  in  any  dispute  as to the
disposition  of the Company  Documents  and  Purchaser  Documents,  in any other
dispute among the Purchaser and the Company,  whether or not the Escrow Agent is
then holding the Company Documents and Purchaser  Documents and continues to act
as the Escrow Agent hereunder.

            (i) The provisions of this Section 4.1 shall survive the resignation
of the Escrow Agent or the termination of this Agreement.

      4.2. Dispute Resolution:  Judgments.  Resolution of disputes arising under
this Agreement shall be subject to the following terms and conditions:

                                       7
<PAGE>

            (a) If  any  dispute  shall  arise  with  respect  to the  delivery,
ownership,  right of  possession  or  disposition  of the Company  Documents and
Purchaser Documents,  or if the Escrow Agent shall in good faith be uncertain as
to its duties or rights hereunder, the Escrow Agent shall be authorized, without
liability  to anyone,  to (i)  refrain  from  taking  any  action  other than to
continue to hold the Company  Documents and Purchaser  Documents pending receipt
of a Joint  Instruction  from the  Purchaser  and  Company,  or (ii) deposit the
Company   Documents  and  Purchaser   Documents  with  any  court  of  competent
jurisdiction  in the State of New York,  in which  event the Escrow  Agent shall
give written notice thereof to the Purchaser and the Company and shall thereupon
be  relieved  and  discharged  from all  further  obligations  pursuant  to this
Agreement.  The Escrow  Agent may,  but shall be under no duty to,  institute or
defend any legal proceedings which relate to the Company Documents and Purchaser
Documents. The Escrow Agent shall have the right to retain counsel if it becomes
involved in any disagreement, dispute or litigation on account of this Agreement
or otherwise determines that it is necessary to consult counsel.

            (b) The Escrow Agent is hereby  expressly  authorized to comply with
and obey any Court  Order.  In case the Escrow  Agent obeys or  complies  with a
Court Order,  the Escrow Agent shall not be liable to the  Purchaser and Company
or to  any  other  person,  firm,  corporation  or  entity  by  reason  of  such
compliance.

                                    ARTICLE V

                                 GENERAL MATTERS

      5.1.  Termination.  This escrow shall terminate upon the release of all of
the Company Documents and Purchaser  Documents or at any time upon the agreement
in writing of the Purchaser and Company.

      5.2.  Notices.  All  notices,  request,  demands and other  communications
required or permitted  hereunder shall be in writing and shall be deemed to have
been duly given one (1) day after being sent by telecopy (with copy delivered by
overnight courier, regular or certified mail):

(a)   If to the Company, to:       Conolog Corporation
                                   5 Columbia Road
                                   Somerville, N.J. 08876

                                   Attn: Chief Financial Officer
                                   Fax:

                                       8
<PAGE>

      With a copy to:
                                   Fax:

(b)   If to the Purchaser, to:

                                   LAURUS MASTER FUND, LTD.
                                   c/o Ironshore Corporate Services Ltd.
                                   P.O. Box 1234 G.T., Queensgate House, South
                                   Church Street Grand Cayman, Cayman Islands
                                   Fax: 345-949-9877

(c)   If to the Escrow Agent, to:

                                   Dechert LLP
                                   30 Rockefeller Plaza
                                   New York, New York 10112
                                   Fax:  (212) 698-3599

or to such other address as any of them shall give to the others by notice made
pursuant to this Section 5.2.

      5.3.  Interest.  The  Escrowed  Payment  shall not be held in an  interest
bearing account nor will interest be payable in connection therewith.

      5.4. Assignment;  Binding Agreement.  Neither this Agreement nor any right
or  obligation  hereunder  shall be  assignable  by any party  without the prior
written consent of the other parties  hereto.  This Agreement shall inure to the
benefit of and be binding  upon the parties  hereto and their  respective  legal
representatives, successors and assigns.

      5.5.  Invalidity.  In the  event  that  any one or more of the  provisions
contained  herein,  or the  application  thereof  in any  circumstance,  is held
invalid,  illegal, or unenforceable in any respect for any reason, the validity,
legality and  enforceability of any such provision in every other respect and of
the  remaining  provisions  contained  herein  shall not be in any way  impaired
thereby,  it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

      5.6  Counterparts/Execution.  This Agreement may be executed in any number
of counterparts and by different  signatories  hereto on separate  counterparts,
each of which,  when so

                                       9
<PAGE>

executed,  shall  be  deemed  an  original,  but  all  such  counterparts  shall
constitute  but one and the same  instrument.  This Agreement may be executed by
facsimile transmission.

                                       10
<PAGE>

      5.7.  Agreement.  Each of the  undersigned  states  that he has  read  the
foregoing Funds Escrow Agreement and understands and agrees to it.

                                      CONOLOG CORPORATION
                                      the "Company"

                                      By:___________________________________
                                      Name:
                                      Title:

                                      PURCHASER:

                                      LAURUS MASTER FUND, LTD.

                                      By:___________________________________
                                      Name:
                                      Title:

                                      ESCROW AGENT:

                                      DECHERT LLP

                                      By:___________________________________
                                      Name:
                                      Title:

                                       11
<PAGE>

                      SCHEDULE A TO FUNDS ESCROW AGREEMENT

<TABLE>
<CAPTION>
_______________________________________________________________ ______________________________________________________
PURCHASER                                                       PRINCIPAL NOTE AMOUNT
_______________________________________________________________ ______________________________________________________
<S>                                                             <C>
LAURUS MASTER FUND, LTD.,                                       $1,200,000    Term Note
c/o Ironshore Corporate Services Ltd., P.O. Box 1234 G.T.,
Queensgate House, South Church Street, Grand Cayman, Cayman
Islands
Fax: 345-949-9877

_______________________________________________________________ ______________________________________________________
TOTAL                                                           $1,200,000
_______________________________________________________________ ______________________________________________________

_______________________________________________________________ ______________________________________________________
FUND MANAGER                                                    CLOSING PAYMENT
_______________________________________________________________ ______________________________________________________
LAURUS CAPITAL MANAGEMENT, L.L.C.                               Closing payment payable in connection with
825 Third Avenue, 14th Floor                                    investment by Laurus Master Fund, Ltd. for which
New York, New York 10022                                        Laurus Capital Management, L.L.C. is the Manager.
Fax: 212-541-4434
_______________________________________________________________ ______________________________________________________
TOTAL                                                           $42,000
_______________________________________________________________ ______________________________________________________

WARRANTS

_______________________________________________________________ ______________________________________________________
WARRANT RECIPIENT                                               WARRANTS IN CONNECTION WITH OFFERING
_______________________________________________________________ ______________________________________________________
LAURUS MASTER FUND, LTD.                                        270,000   Term Note Warrants issuable in connection
A Cayman Island corporation                                     with investment by Laurus Master Fund, Ltd.
c/o Ironshore Corporate Services Ltd.
P.O. Box 1234 G.T.
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Fax: 345-949-9877
_______________________________________________________________ ______________________________________________________
TOTAL                                                           270,000    Warrants
_______________________________________________________________ ______________________________________________________
</TABLE>

                                       12

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