Document:

Exhibit 10.8

                                                            EMPLOYMENT AGREEMENT

                  This  EMPLOYMENT  AGREEMENT,  dated as of January 1, 2000 (the
"Effective Date"), is entered into by and between Unigene Laboratories,  Inc., a
Delaware  corporation having offices at 110 Little Falls Road,  Fairfield,  N.J.
07004 (the  "Company"),  and Jay Levy,  whose  address is 110 Little Falls Road,
Fairfield, NJ 0004 (the "Executive").

                                   WITNESSETH:
                                   ----------

                  WHEREAS,  the Company  desires to employ the  Executive and to
enter into this Agreement embodying the terms of such employment; and

                  WHEREAS,  the Executive  desires to enter into this  Agreement
and to accept  such  employment,  subject  to the terms and  provisions  of this
Agreement;

                  NOW,  THEREFORE,  the parties hereto,  intending to be legally
bound, hereby agree as follows:

                  1. Engagement. The Company hereby employs the Executive as its
Treasurer,  and the Executive hereby accepts such  employment,  on the terms and
conditions hereinafter set forth.

                  2. Term.  This  Agreement  is for an initial  term of one year
commencing on the date hereof,  subject to earlier  termination  as provided for
herein. This Agreement will be automatically  renewed annually after its initial
term for an additional  one-year term, and on a year-to-year  basis  thereafter,
unless  either  party  notifies  the  other of the  desire  not to so renew  the
Agreement no later than three months prior to scheduled termination date.

                  3. Duties.  During the term of this  Agreement,  the Executive
shall  serve  as  the  Company's  Treasurer  and  shall  have  such  duties  and
responsibilities  as are set  forth  in the  Company's  Bylaws  and  such  other
executive  responsibilities  as may be  assigned to him from time to time by the
Board of Directors or the Chief Executive  Officer.  The Executive shall use his
best efforts to perform,  and shall act in good faith in performing,  all duties
required to be performed by him under this Agreement.

                  4. Availability.  The Executive shall devote approximately 15%
of his entire  working time,  attention  and energies to the Company's  business
and,  during  the term of this  Agreement,  shall  not be  engaged  in any other
business activity that would interfere with the performance of his duties to the
Company without the express written approval of the Board of Directors.

                  5.  Business   Expenses.   The  Company  shall  reimburse  the
Executive, promptly upon presentation of itemized vouchers, for all ordinary and
necessary  business expenses incurred by the Executive in the performance of his
duties hereunder.

                  6.  Compensation.  As  compensation  for  the  services  to be
rendered hereunder, the Company agrees as follows:

                  (a) to pay the  Executive an annual  salary of $20,000  during
the initial year of this Agreement;
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                  (b) if the Agreement is renewed  automatically  for subsequent
years in accordance  with Section (2) above,  to provide the  Executive  with an
annual salary  approved by the  Compensation  Committee,  and which shall not be
less than the Executive's annual salary for the preceding year;

                  (c) to participate in such employee  benefit plans as are made
available by the Company to its employees generally.

                  The   Executive   acknowledges   that  salary  and  all  other
compensation  payable under this Agreement  shall be subject to withholding  for
income and other applicable taxes to the extent required by law.

                  7. Ownership of Intellectual  Property.  All rights, title and
interest of every kind and nature whatsoever in and to discoveries,  inventions,
improvements,  patents (and applications therefor), copyrights, ideas, know-how,
notes,  creations,  properties and all other proprietary rights arising from, or
in any way related to, the  Executive's  employment  hereunder  shall become and
remain the exclusive  property of the Company,  and the Executive  shall have no
interest therein.

                  8. Trade Secrets.  The Executive covenants and agrees with the
Company  that he will not,  during  the term of this  Agreement  or  thereafter,
disclose to anyone (except to the extent reasonably  necessary for the Executive
to perform his duties  hereunder or as may be required by law) any  confidential
information  concerning  the  business  or  affairs  of the  Company  (or of any
affiliate or subsidiary  of the Company),  including but not limited to lists of
customers,  business  plans,  financial or cost  information,  and  confidential
scientific and clinical  information (whether of the Company or entrusted to the
Company by a third party under a  confidentiality  agreement or  understanding),
which the  Executive  shall have  acquired in the course of, or incident to, the
performance of his duties pursuant to the terms of this Agreement or pursuant to
his prior  employment  by the Company (or any  affiliate  or  subsidiary  of the
Company).  In the event of a breach or threatened breach by the Executive of the
provisions  of this  Section 8, the Company  shall be entitled to an  injunction
restraining the Executive from disclosing, in whole or in part, such information
or from rendering any services to any person, firm, corporation,  association or
other entity to whom such  information has been disclosed or is threatened to be
disclosed.  Nothing  herein shall be construed as  prohibiting  the Company from
pursuing  any  other  remedies  available  to the  Company  for such  breach  or
threatened breach, including the recovery of damages from the Executive. Nothing
herein shall be construed as prohibiting the Executive from disclosing to anyone
any information which is, or which becomes,  available to the public (other than
by reason of a  violation  of this  Section  8) or which is a matter of  general
business knowledge or experience.

                  9.  Termination  For Cause.  The  Company  may  terminate  the
employment  of the  Executive for cause in the event that the Board of Directors
determines  that the  Executive  has engaged in (a) any willful or unlawful  act
that  causes  material  injury  to the  Company;  or (b) any  criminal  act that
adversely affects the ability of the executive to perform effectively his duties
under this Agreement. If the employment of the Executive under this Agreement is
terminated  under this  Section 9, the Company  shall be relieved of all further
obligations  under this Agreement,  except for the payment of accrued salary and
reimbursement  under  Section  5 for  reimbursable  expenses  incurred  prior to
termination. Notwithstanding such termination of employment, the Executive shall
continue  to be  bound  by the  provisions  in  Sections  7, 8,  and 13.  If the
Executive's  employment  is  terminated  pursuant to this Section 9, the Company
shall provide to the Executive a statement in reasonable detail of the Company's
reasons for such termination.
<PAGE>
                  10.  Termination  Without Cause. The Company may terminate the
employment  of the Executive  without  cause,  subject to  compliance  with this
Section 10.

                  (a) In the  event the  Executive's  employment  is  terminated
without cause, the Executive shall be entitled to:

                  (1) a severance payment consisting of a lump-sum payment equal
to the executive's then-current annual salary;

                  (2) a  payment  in cash  equivalent  to the cash  value of all
accrued vacation days; and

                  (b) Termination of employment  under this Section 10 shall not
terminate the Executive's obligations under Sections 7, 8 or 13.

                  11.      Resignation by the Executive for Good Reason.

                  (a) The Executive may resign for good reason if one or both of
the following occur:

                  (1) a Change of Control at Unigene  (as  defined in  paragraph
(d) below); or

                  (2) a material diminution in the Executive's  responsibilities
without the Executive's consent.

                  (b) In the event that the  Executive  resigns for good reason,
the Executive shall be entitled to:

                  (1) a severance payment consisting of a lump-sum payment equal
to the executive's then-current annual salary;

                  (2) a payment in cash  equal to the cash value of all  accrued
vacation days; and

                  (c) Termination of employment  under this Section 10 shall not
terminate the Executive's obligations under Sections 7, 8 or 13.

                  (d) For the purpose of this  Agreement,  a "Change of Control"
shall have occurred if:

                      (i) any individual, entity or group (within the meaning of
Section 13(d)(3) or Section 14(d)(2) of the Securities  Exchange Act of 1934, as
amended (the "Exchange Act")) acquires beneficial  ownership (within the meaning
of Rule l3d-3 promulgated under the Exchange Act) of more than 50% of either (A)
the then outstanding  shares of Common Stock or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the "Voting Securities");  provided, however, that
any acquisition by the Company,  by any employee benefit plan (or related trust)
of the Company,  or by any  corporation  with respect to which,  following  such
acquisition,  more than 50% of,  respectively,  the then  outstanding  shares of
common  stock of such  corporation  and the  combined  voting  power of the then
outstanding voting securities of such corporation  entitled to vote generally in
<PAGE>
the election of directors is then beneficially owned, directly or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
owners,  respectively,  of the Common  Stock and Voting  Securities  immediately
prior  to such  acquisition  in  substantially  the  same  proportion  as  their
ownership, immediately prior to such acquisition, of the Common Stock and Voting
Securities, as the case may be, shall not constitute a Change of Control;

                      (ii) individuals who, as of the Effective Date, constitute
the  Board  of  Directors  (the  "Incumbent  Board")  cease  for any  reason  to
constitute  at least a majority  of the Board of  Directors,  provided  that any
individual  becoming a director  subsequent to the Effective Date whose election
was approved by a vote of at least a majority of the directors  then  comprising
the  Incumbent  Board  shall be  deemed a member  of the  Incumbent  Board,  but
excluding,  for this purpose,  any such individual  whose initial  assumption of
office is in settlement of an actual or threatened  election contest relating to
the election of the directors of the Company; or

                      (iii)  the  stockholders  of  the  Company  approve  (A) a
reorganization, merger or consolidation, in each case, with respect to which all
or substantially all of the persons who were the respective beneficial owners of
the  Common  Stock  and  the  Voting   Securities   immediately  prior  to  such
reorganization,  merger or consolidation do not, following such  reorganization,
merger or consolidation, beneficially own, directly or indirectly, more than 50%
of,  respectively,  the then outstanding shares of common stock and the combined
voting  power  of the  then  outstanding  voting  securities  entitled  to  vote
generally in the election of directors,  as the case may be, of the  corporation
resulting from such  reorganization,  merger or  consolidation or (B) a complete
liquidation or dissolution of the Company or of the sale or other disposition of
all or substantially all of the assets of the Company.

                  12.  Disability  of the  Executive.  In  the  event  that  the
Executive  during the period while employed  under this  Agreement  shall at any
time become unable, due to ill-health,  accident, injury or other disability, to
carry out his duties under this Agreement with reasonable accommodation provided
by the Company,  the Company,  upon a lump-sum payment to the Executive equal to
the Executive's  then-current annual salary, may terminate this Agreement and be
relieved of all further obligations  hereunder.  Termination of employment under
this Section 12 shall not terminate the Executive's  obligations  under Sections
7, 8 or 13.

                  13.  Non-Competition.  The Executive  hereby agrees that for a
period of one year  following the  termination  for any reason of his employment
under  this  Agreement,  he will  not,  directly  or  indirectly,  engage in any
business  involving  (a) the  development,  production  or  sale  of  Calcitonin
products  or (b)  the  development,  production  or sale  of  amidated  peptides
anywhere in the world.  The Executive agrees that the provisions of this Section
13 are  necessary  and  reasonable  to protect the Company in the conduct of its
business.  If any restriction contained in this Section 13 shall be deemed to be
invalid or unenforceable  by reason of the extent,  duration of geographic scope
thereof, then the Company shall have the right to reduce such extent,  duration,
geographic  scope or other  provisions  thereof,  and in their reduced form such
restrictions shall then be enforceable in the manner contemplated hereby.

                  14.  Capacity.  The Executive  represents  and warrants to the
Company  that he is not now under any  obligation,  of a  contractual  nature or
otherwise, to any person, firm, corporation, association or other entity that is
inconsistent or in conflict with this Agreement or which would prevent, limit or
impair in any way the performance by him of his obligations hereunder.
<PAGE>
                  15. Waiver.  No act,  delay,  omission or course of dealing on
the part of any party hereto in exercising any right,  power or remedy hereunder
shall  operate as, or be construed as, a waiver  thereof or otherwise  prejudice
such party's rights, powers and remedies under this Agreement.

                  16.  Arbitration.  The  Executive  agrees to submit to binding
arbitration  all claims  arising out of his  employment  with the Company and/or
this  Agreement,  including  all claims  under  federal law  (including  but not
limited  to Title VII of the  Civil  Rights  Act of 1967) as well as all  claims
under state law  (including  but not limited to claims  under the New Jersey Law
Against Discrimination).  This arbitration shall take place in New Jersey, under
the then prevailing rules of the American Arbitration Association.

                  17. Assignability. The rights and obligations contained herein
shall be binding on and inure to the  benefit of the  successors  and assigns of
the Company.  The Executive may not assign his rights or  obligations  hereunder
without the express written consent of the Company.

                  18.  Completeness.  This  Agreement  sets  forth  all,  and is
intended by each party to be an integration of all, of the promises,  agreements
and understandings between the parties hereto with respect to the subject matter
hereof.

                  19.  Counterparts.  This Agreement may be executed in multiple
counterparts,  each of which shall be deemed to be an original, and all of which
together shall constitute one agreement binding on the parties hereto.

                  20.  Severability.  Each provision of this Agreement  shall be
considered  severable and if for any reason any provision  that is not essential
to the  effectuation  of the basic  purpose of the Agreement is determined to be
invalid or contrary  to any  existing or future  law,  such  provision  shall be
deemed to be omitted from this  Agreement and such  invalidity  shall not impair
the operation of or affect those provisions of this Agreement that are valid.

                  21.  Headings.   Headings  contained  in  this  Agreement  are
inserted for reference and convenience only and in no way define,  limit, extend
or describe the scope of this Agreement or the meaning or construction of any of
the provisions hereof.

                  22. Survival of Terms. If this Agreement is terminated for any
reason, the provisions of Sections 7, 8 and 13 shall survive,  and the Executive
and the  Company,  as the case may be,  shall  continue to be bound by the terms
thereof to the extent provided therein.

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

                                                  UNIGENE LABORATORIES, INC.

/s/Jay Levy                               By:     /s/Warren P. Levy
---------------                                   ------------------
Jay Levy                                          Warren P. Levy
                                                  President and Chief
                                                  Executive OfficerCOMMON STOCK INVESTMENT AGREEMENT

              COMMON STOCK  INVESTMENT AGREEMENT  ("Agreement") dated  as  of
    March 3, 2000  among  TELULAR CORPORATION,  a Delaware  corporation  (the
    "Company"), HALIFAX  FUND,  L.P.,  a Cayman  Island  limited  partnership
    ("Halifax"), ELLIOTT  ASSOCIATES, L.P.,  a Delaware  limited  partnership
    with  an  office  at  512  Fifth  Avenue,  New  York,  New  York    10019
    ("Elliott"), and WESTGATE INTERNATIONAL,  L.P., a Cayman Islands  limited
    partnership with  an office  c/o Stonington  Management Corporation,  712
    Fifth Avenue, New  York, New York   10019 ("Westgate").and together  with
    Halifax and Elliott, the "Investors").

                              W I T N E S S E T H:

              WHEREAS,  the  Company  desires  to  sell  and  issue  to   the
    Investors, and  the  Investors  wish to  purchase  from the  Company,  an
    aggregate of 444,444 shares of the Company's Common Stock, $.01 par value
    ("Common Stock") (all of such  shares of Common Stock being the  "Initial
    Shares"), and five year warrants, in the form attached hereto as Annex A,
    to purchase 100,000 shares of Common Stock at an exercise price of $29.25
    per share (the "Initial Warrants"), on the terms and conditions described
    below; and

              WHEREAS,  the  Investors   may  receive,   for  no   additional
    consideration, five year warrants in the form attached hereto as Annex B,
    exercisable for up to 285,714  additional shares of Common Stock, in  the
    event of certain market conditions described below ("Fill-up Warrants");

              WHEREAS, the Investors may elect, in their sole discretion,  to
    purchase additional shares of  Common Stock ("Additional Shares") on  the
    terms and conditions described  below, in which event the Investors  will
    also receive five year warrants,  in the form attached hereto as  Exhibit
    C, to purchase  50,000 shares  of Common Stock  at an  exercise price  of
    $31.50 per share (the  "Additional Warrants") (the Initial Warrants,  the
    Fill-Up Warrants  and the  Additional Warrants  being, collectively,  the
    "Warrants"); and

              WHEREAS,  the  Initial  Shares,  the  shares  of  Common  Stock
    underlying the Warrants (the "Warrant Shares") and the Additional  Shares
    (the Initial Shares, the Warrant Shares and the Additional Shares  being,
    collectively, the "Registrable  Shares") will carry registration  rights,
    pursuant to the terms of that certain Registration Rights Agreement to be
    entered into between the  Company and the Investors substantially in  the
    form annexed hereto (the "Registration Rights Agreement").

              NOW, THEREFORE, in consideration of the foregoing premises  and
    the covenants contained herein and other good and valuable consideration,
    the receipt and sufficiency of which are hereby acknowledged, the parties
    hereto agree as follows:

                                   Article I

                    Purchase and Sale of Shares and Warrants

         Section 1.1  Issuance of Initial Shares and Initial Warrants.   Upon
    the following terms and conditions, the  Company shall issue and sell to
    the Investors, and the Investors shall purchase from the Company, the
    number of Initial Shares and  Initial Warrants indicated next to the
<PAGE>
    Investors' names on Schedule I attached hereto.

              (a)  Purchase Price.  The aggregate purchase price for the
    Initial Shares and Initial Warrants to be acquired by each Investor (the
    "Aggregate Purchase Price") shall be the Aggregate Purchase Price set
    forth next to each such  Investor's name on Schedule I.  The Initial
    Shares shall be delivered against receipt of the Aggregate Purchase
    Price.  The purchase price per Initial Share (the "Share Purchase Price")
    shall be $22.50.

              (b)  The Closing.

                     (i)   The closing of the purchase and sale of
              the Initial Shares and Initial Warrants (the "Closing")
              shall take place at the offices of Kleinberg, Kaplan,
              Wolff & Cohen, P.C. ("KKWC"), on the date hereof
              (the "Closing Date").

                     (ii)  On the Closing Date, the Company shall
              deliver to the Investors stock certificates (with the
              number  of and  denomination  of such  certificates
              requested by each Investor) representing the  Initial
              Shares  and  Initial  Warrants  purchased   hereunder
              registered in the name  of each such Investor or  its
              nominee.  The delivery of payment by wire transfer to
              an account designated by the Company by each Investor
              of the Aggregate Purchase  Price applicable to it  as
              set  forth  in  Section  1.1  and  Schedule  I  shall
              constitute a  payment  delivered  to the  Company  in
              satisfaction of the Investor's obligation to pay  the
              Aggregate Purchase  Price  hereunder.   In  addition,
              each party shall  deliver all documents,  instruments
              and writings required to  be delivered by such  party
              pursuant  to  this  Agreement  at  or  prior  to  the
              Closing.

         Section 1.2  Fill-Up.

              (a)  For  purposes of  this Agreement, "Weighted Average Price"
    shall mean the quotient of (i) the per share price of each  trade made on
    the Principal Market  during a  trading day multiplied  by the number  of
    shares of Common Stock included in such trade, divided by (ii) the  total
    volume of all shares  of Common Stock traded  on the Principal Market  on
    such trading  day,  calculated  using  the  _Volume  at  Price_  function
    provided by Bloomberg.   If, at any time  prior to or including the  25th
    trading day (the "Fill-up Date") after but not including the Closing Date
    (the "Fill-up  Period"),  the lowest  average  of any  three  consecutive
    Weighted Average  Prices is  equal to  or less than $13.50 (a "Fill-up
    Event"), then the Company must provide to the Investor, at the  Company's
    option, either (i) the  full cash Aggregate Purchase Price received  from
    the Investors,  in  exchange  for  which  the  Investors'  right  to  any
    Additional  Shares  and  Additional  Warrants  will  terminate  and   the
    Investors shall  deliver  to the  Company  for cancellation  the  Initial
    Shares  (but  NOT  the  Initial  Warrants),  or  (ii)  Fill-up   Warrants
<PAGE>
    exercisable for  the maximum  number  of Warrant  Shares (not  to  exceed
    285,714) issuable pursuant to the following table:

     % Decline in lowest average of
    3 Consecutive Weighted Average       # of Warrant Shares for
      Prices below Share Purchase      which Fill-up Warrants may be
    Price during the Fill-up Period             exercised

               > 40%                             166,667

               > 50%                             200,000

               > 60%                             250,000

               > 65%                             285,714

              (b)  The   number  of  Warrant  Shares  underlying the  Fill-up
    Warrants shall be  increased in proportion to  the decline in the  lowest
    average of  any three consecutive  Weighted Average  Prices below  $13.50
    during the Fill-up Period.

              (c)  If a Fill-up  Event occurs during  the Fill-up Period, the
    Company shall irrevocably notify the Investors in writing, no later  than
    1 hour before the opening of the Principal Market on the trading day next
    following the Fill-up Event,  whether the Company will pay the  Investors
    entirely in cash or entirely in  Fill-up Warrants as provided above.  If
    the Company fails to deliver such written notice within the time provided
    by this Section 1.2(b), the  Company shall be deemed to have  irrevocably
    elected to pay the Investors entirely in Fill-up Warrants.

              (c)  Subject  to anti-dilution adjustments, the total number of
    Warrant Shares for which the  Warrants may be exercised shall not  exceed
    435,714 (100,000 for Initial Warrants, 50,000 for Additional Warrants and
    up to 285,714 for Fill-up Warrants).

              (d)  The exercise price of the  Fill-up Warrants will equal the
    lowest average of  any three consecutive  Weighted Average Prices  during
    the Fill-up Period.

              (e)  The  closing  at  which the  Company  shall deliver to the
    Investors pursuant to this Section 1.2 either cash equal to the Aggregate
    Purchase Price or the appropriate number of Fill-up Warrants (the  "Fill-
    up Closing") shall take place at the offices of KKWC either on  the Fill-
    up Closing Date.

              (f)  The number of Warrant Shares for which the Fill-up Warrants
    calculated in accordance with the above formula can be exercised shall be
    appropriately adjusted  to  reflect  any  stock  split,  stock  dividend,
    recapitalization or similar event so that the Investors receive the  same
    economically equivalent value  of Warrant  Shares underlying the  Fill-up
    Warrants as they would in the absence of such event.

              (g)  The  Warrant Shares  for which the Fill-up Warrants may be
    exercised shall upon  exercise be  fully-paid, nonassessable,  registered
    (to the extent provided  in the Registration Rights Agreement) shares  of
    Common Stock,  free and  clear of  all  liens and  encumbrances and  duly
    eligible for  trading on  the Nasdaq National  Market System  or, if  the
    Common Stock  is not  quoted thereon, on  any other  Approved Market  (as
    hereinafter defined) upon which the Common Stock is principally traded or
    quoted (in either case, the "Principal Market").

         Section 1.3  Additional Investments.

              (a)  Except as provided in Section 1.2(a), (i) Halifax and (ii)
    Elliott and  Westgate (collectively),  shall each  respectively have  the
    pro-rata right but not the obligation to purchase in whole or in  part on
    any one day until and including  the day 365 days after the Closing  Date
    (and if such day is not a business day, the next succeeding business day)
    up to 177,746  Additional Shares at  a price of  $28.13 per share.   Upon
    such purchase  of Additional Shares,  the purchasing  Investor will  also
    receive Additional Warrants  exercisable for the  same proportion of  the
    50,000 underlying Warrant Shares  that the aggregate price paid for  such
    Investor's Additional Shares bears to $5,000,000.  The exercise price  of
    the Additional Warrants shall be $31.50.

              (b)  The number  of Warrant  Shares into which  the  Additional
    Warrants can be exercised shall be appropriately adjusted to reflect  any
    stock split, stock  dividend, recapitalization or  similar event so  that
    the Investors receive the  same economically equivalent value of  Warrant
    Shares underlying such Additional Shares as they would in the absence  of
    such event.

              (c)  Upon  delivery of a  notice by (i) Halifax or (ii) Elliott
    and Westgate, respectively, exercising its respective options to purchase
    Additional Shares  hereunder  (an  "Additional Investment  Notice"),  the
    Company shall  be  obligated  to  sell  and  deliver  to  the  applicable
    Investors, and the applicable  Investors shall be obligated to  purchase,
    the Additional  Shares  specified in  the Additional  Investment  Notice.
    Closings of  such  purchase  and  sale (each  an  "Additional  Investment
    Closing") shall take place at the office of KKWC within three (3) trading
    days after the  delivery of  the Additional Investment  Notice.  At  each
    Additional Closing, the Company shall deliver certificates evidencing the
    Additional Shares  being  purchased,  free and  clear  of all  liens  and
    encumbrances, against the payment of the purchase price therefor, as well
    as the  Additional Warrants.   The  Additional Shares  delivered and  the
    Warrant Shares deliverable upon  the exercise of the Additional  Warrants
    shall be fully-paid, nonassessable shares of Common Stock which shall  be
    required  to  be  registered  as  provided  in  the  Registration  Rights
    Agreement.

                                   Article II

                         Representations and Warranties

         Section 2.1  Representations and Warranties of the Company.   The
    Company hereby makes the following representations and warranties to the
    Investors as of the date hereof,  on the Closing Date and on the date of
    any Additional Investment Closing:

              (a)  Organization and  Qualification; Material Adverse  Effect.
    The Company  is a  corporation  duly incorporated  and existing  in  good
    standing under the laws  of the State of  Delaware and has the  requisite
    corporate power to own its properties and to carry on its business as now
    being conducted.  The Company  does not have any subsidiaries other  than
    the   subsidiaries   listed   on   Schedule   2.1(a)   attached    hereto
    ("Subsidiaries").  Except where  specifically indicated to the  contrary,
    all references in this Agreement to Subsidiaries shall be deemed to refer
    to all direct and indirect subsidiaries  of the Company.  The Company  is
    duly qualified as  a foreign corporation  to do business  and is in  good
    standing in  every  jurisdiction  in which  the  nature of  the  business
    conducted or  property owned  by it  makes  such qualification  necessary
    other than those  in which  the failure so  to qualify  would not have  a
    Material Adverse Effect.  "Material Adverse Effect" means any (i) adverse
    effect(s) on the business, operations, properties, prospects or financial
    condition of  the Company  and its  Subsidiaries,  if any,  and which  is
    material to the Company and its  Subsidiaries, if any, taken as a  whole,
    and (ii) any  prohibition of,  delay in or  other adverse  effect on  the
    transactions contemplated under  this Agreement, the Registration  Rights
    Agreement or  any  other agreement  or  document contemplated  hereby  or
    thereby.

              (b)  Authorization;  Enforcement.   (i)  The  Company  has  all
    requisite corporate power  and authority to  enter into and perform  this
    Agreement,  the   Warrants   and   the  Registration   Rights   Agreement
    ("Transaction Documents")  and to  issue the  Initial Shares,  Additional
    Shares, Warrants and Warrant  Shares (collectively, the "Securities")  in
    accordance with the terms hereof, (ii) the execution and delivery of  the
    Transaction Documents by  the Company and the  consummation by it of  the
    transactions contemplated hereby and  thereby, have been duly  authorized
    by  all   necessary  corporate  action,   and  no   further  consent   or
    authorization of the Company or its Board of Directors (or any  committee
    or  subcommittee  thereof)  or   stockholders  is  required,  (iii)   the
    Transaction Documents  have  been  duly  executed and  delivered  by  the
    Company, (iv)  the  Transaction Documents  constitute valid  and  binding
    obligations of the Company enforceable against the Company in  accordance
    with their  terms,  except  as  such  enforceability may  be  limited  by
    applicable   bankruptcy,    insolvency,    reorganization,    moratorium,
    liquidation or  similar  laws relating  to,  or affecting  generally  the
    enforcement of  creditors'  rights and  remedies  or by  other  equitable
    principles of general application, and (v) the Securities have been  duly
    authorized and, upon issuance thereof and payment therefor in  accordance
    with the terms of this Agreement, will be validly issued, fully paid  and
    non-assessable,  free  and  clear  of  any  and  all  liens,  claims  and
    encumbrances.

              (c)  Capitalization.  As of  the  date hereof,  the  authorized
    capital stock of the Company consists of (i) 75,000,000 shares of  Common
    Stock, of which as of the date hereof,  other than as contemplated by the
    Transaction Documents,  12,091,431  shares  are issued  and  outstanding,
    1,159,580 shares are issuable  and reserved for issuance pursuant to  the
    Company's stock option and purchase plans and 50,000 shares are  issuable
    and  reserved  for  issuance   pursuant  to  securities  exercisable   or
    exchangeable for, or convertible  into, shares of Common Stock, and  (ii)
    9,979,000 shares of preferred stock, of  which as of the date hereof,  no
    shares were issued and outstanding.  All of such outstanding shares  have
    been,  or  upon  issuance  will  be,  validly  issued,  fully  paid   and
    nonassessable.  As  of the  date hereof, except  as contemplated by  this
    Agreement or as disclosed in Schedule 2.1(c) or in the SEC Documents  (as
    defined in Section 2.1(f)), (i) no shares of the Company's capital  stock
    are subject to preemptive rights or any other similar rights or any liens
    or encumbrances suffered or permitted  by the Company, (ii) there are  no
    outstanding debt  securities,  (iii) there  are no  outstanding  options,
    warrants, scrip,  rights to  subscribe to,  calls or  commitments of  any
    character whatsoever  relating to,  or securities  or rights  convertible
    into, any  shares  of  capital  stock  of  the  Company  or  any  of  its
    Subsidiaries, or contracts,  commitments, understandings or  arrangements
    by which the Company or any of its Subsidiaries is or may become bound to
    issue additional shares  of capital stock  of the Company  or any of  its
    Subsidiaries or options, warrants,  scrip, rights to subscribe to,  calls
    or commitments of any character whatsoever relating to, or securities  or
    rights convertible into,  any shares of capital  stock of the Company  or
    any of its  Subsidiaries, (iv)  there are no  agreements or  arrangements
    under which  the  Company or  any  of its  Subsidiaries is  obligated  to
    register the sale of any of their securities under the Securities Act  of
    1933, as  amended ("Securities  Act" or  "1933  Act"), (v)  there are  no
    outstanding securities of  the Company or  any of its Subsidiaries  which
    contain any redemption or similar provisions, and there are no contracts,
    commitments, understandings or arrangements  by which the Company or  any
    of its Subsidiaries is  or may become bound  to redeem a security of  the
    Company or  any of  its Subsidiaries,  (vi)  there are  no securities  or
    instruments containing anti-dilution or  similar provisions that will  be
    triggered by the issuance of  Common Stock as required by this  Agreement
    and (vii)  the Company  does not have  any stock  appreciation rights  or
    "phantom stock" plans  or agreements  or any similar  plan or  agreement.
    The Company has furnished to the Investors true and correct copies of the
    Company's Certificate of  Incorporation, as amended  and as in effect  on
    the date hereof (the  "Certificate of Incorporation"), and the  Company's
    By-laws, as in effect on the  date hereof (the "By-laws"), and the  terms
    of all securities  convertible into or  exercisable for Common Stock  and
    the material rights of the holders thereof in respect thereto.

              (d)  No  Conflicts  and  No Consents.   Except as  disclosed in
    Schedule  2.1(d),  the  execution,   delivery  and  performance  of   the
    Transaction Documents by the Company and the consummation by the  Company
    of the transactions contemplated  hereby and thereby will not (i)  result
    in a violation of the  Certificate of Incorporation or the By-laws;  (ii)
    conflict with, or constitute a default (or an event which with notice  or
    lapse of time or both reasonably  could be expected to become a  default)
    under,  or  give  to   others  any  rights  of  termination,   amendment,
    acceleration or cancellation of,  any agreement, indenture or  instrument
    to which the  Company or  any of its  Subsidiaries is  a party, or  (iii)
    result in a  violation of any law,  rule, regulation, order, judgment  or
    decree (including  United States federal  and state  securities laws  and
    regulations and  the  rules  and  regulations of  the  Principal  Market)
    applicable to the  Company or  any of its  Subsidiaries or  by which  any
    property or asset of the Company  or any of its Subsidiaries is bound  or
    affected.   Except  as  disclosed  in  Schedule  2.1(d)  or  in  the  SEC
    Documents, neither the  Company nor its  Subsidiaries is in violation  of
    any term of, or in default under, (x) its Certificate of Incorporation or
    By-laws or their organizational charter or by-laws, respectively, (y) any
    material  contract,   agreement,   mortgage,   indebtedness,   indenture,
    instrument, or (z) any judgment, decree or order or any statute, rule  or
    regulation applicable  to  the  Company  or its  Subsidiaries,  the  non-
    compliance with which (in  the case of (z)  only), would have a  Material
    Adverse Effect.   Except as specifically  contemplated by this  Agreement
    and as required under the 1933 Act, the Company is not required to obtain
    any  consent,  authorization  or   order  of,  or  make  any  filing   or
    registration with, any court,  governmental agency or any  regulatory  or
    self-regulatory agency in order for it to execute, deliver or perform any
    of its obligations under,  or contemplated by, the Transaction  Documents
    in accordance with the terms hereof  or thereof.  Except as disclosed  in
    Schedule 2.1(d) or in  the SEC  Documents, all consents,  authorizations,
    orders, filings and registrations which the Company is required to obtain
    pursuant to the preceding sentence  have been obtained or effected on  or
    prior to the date hereof.  The Company is in compliance with  the listing
    requirements of the Principal Market, and no notice of any non-compliance
    or violation thereof has been received in the previous 12 months.

              (e)  Principal  Market.  The Principal  Market for  the  Common
    Stock is the Nasdaq National Market System.

              (f)  SEC  Documents; Financial Statements.  Since December  31,
    1997, the Company has filed all reports, schedules, forms, statements and
    other documents required to be filed  by it with the SEC pursuant to  the
    reporting requirements of  the 1934  Act (all of  the foregoing filed  at
    least five  (5)  days  prior  to the  date  hereof  or the  date  of  the
    Additional Investment Closing, as  applicable, and all exhibits  included
    therein and  financial  statements and  schedules thereto  and  documents
    incorporated by reference  therein being hereinafter  referred to as  the
    "SEC Documents").  All SEC Documents were filed electronically via EDGAR.
    As of their respective dates, the SEC Documents complied in all  material
    respects with  the  requirements  of  the  1934 Act  and  the  rules  and
    regulations of  the  SEC promulgated  thereunder  applicable to  the  SEC
    Documents, and none  of the SEC  Documents, at the  time they were  filed
    with the  SEC,  contained any  untrue  statement of  a material  fact  or
    omitted to  state  a  material fact  required  to  be stated  therein  or
    necessary in  order  to make  the  statements therein,  in light  of  the
    circumstances under which  they were made, not  misleading.  As of  their
    respective dates, the financial statements of the Company included in the
    SEC  Documents  complied  as  to  form  in  all  material  respects  with
    applicable  accounting   requirements  and   the  published   rules   and
    regulations of the SEC  with respect thereto.  Such financial  statements
    have been  prepared  in  accordance with  generally  accepted  accounting
    principles, consistently applied, during the periods involved (except (i)
    as may be otherwise indicated  in such financial statements or the  notes
    thereto, or  (ii) in  the case of  unaudited interim  statements, to  the
    extent they  may  exclude  footnotes  or  may  be  condensed  or  summary
    statements) and  fairly present in  all material  respects the  financial
    position of the Company  as of the dates  thereof and the results of  its
    operations and cash  flows for  the periods then  ended (subject, in  the
    case of  unaudited  statements, to  normal year-end  audit  adjustments).
    Neither the Company nor any of its Subsidiaries or any of their officers,
    directors, employees  or  agents  have  provided the  Investor  with  any
    material, nonpublic information which was not publicly disclosed prior to
    the date provided.

              (g)  Absence  of  Certain  Changes.   Except  as  disclosed  in
    Schedule 2.1(g) or the SEC Documents, since September 30, 1999, no event,
    liability, development or circumstances  has occurred and there has  been
    no adverse  change or adverse  development in  the business,  properties,
    assets,  operations,  financial  condition,  liabilities  or  results  of
    operations of the Company or its Subsidiaries which either has had or, to
    the knowledge of the Company or its Subsidiaries, is reasonably likely to
    have a Material Adverse Effect or which would be required to be disclosed
    in an SEC registration statement for  the Common Stock.  The Company  has
    not taken any steps, and does not currently expect to take any  steps, to
    seek protection pursuant  to any bankruptcy law  nor does the Company  or
    its Subsidiaries  have  any  knowledge  or  reason to  believe  that  its
    creditors intend to initiate involuntary bankruptcy proceedings.

              (h)  Absence  of  Litigation.    There  is  no  action,   suit,
    proceeding, inquiry  or  investigation before  or  by any  court,  public
    board, government agency,  self-regulatory organization  or body  pending
    or, to  the  knowledge  of  the  Company  or  any  of  its  Subsidiaries,
    threatened against or affecting the  Company, the Common Stock or any  of
    the Company's  Subsidiaries or  any  of the  Company's or  the  Company's
    Subsidiaries' officers  or directors in  their capacities  as such  which
    individually and  in  the aggregate,  respectively, would  be  reasonably
    likely to result in  liability to the Company  in excess of $100,000  and
    $300,000, respectively, except as set forth in Schedule 2.1(h) or the SEC
    documents.

              (i)  Acknowledgment  Regarding Investors' Purchase  of  Shares.
    The Company acknowledges and agrees that the Investors are acting  solely
    in  the  capacity  of  arm's  length  purchasers  with  respect  to   the
    Transaction  Documents  and  the  transactions  contemplated  hereby  and
    thereby.  The  Company further  acknowledges that the  Investors are  not
    acting as a  financial advisor  or fiduciary of  the Company  (or in  any
    similar capacity) with respect to the Transaction Documents and that  the
    Company's decision to enter into the Transaction Documents has been based
    solely  on   the  independent   evaluation  by   the   Company  and   its
    representatives.

              (j)  No Integrated Offering.   Neither the Company, nor any  of
    its affiliates,  nor  any  person acting  on  its  or their  behalf  has,
    directly or  indirectly, made  any offers  or  sales of  any security  or
    solicited any offers to buy any security, under circumstances that  would
    cause any offering of Securities  to the Investors to be integrated  with
    prior offerings  by the  Company for  purposes  of the  1933 Act  or  any
    applicable   shareholder   approval   provisions,   including,    without
    limitation, under the rules and regulations of the Principal Market,  nor
    will the Company or any of  its Subsidiaries take any action or steps  in
    the future  that  would  cause  any  offering of  the  Securities  to  be
    integrated with other offerings.

              (k)  Employee  Relations.   Neither the Company  nor any of its
    Subsidiaries is involved  in any labor dispute  nor, to the knowledge  of
    the Company or any of  its Subsidiaries, is any such dispute  threatened.
    Neither the  Company  nor  any  of  its Subsidiaries  is  a  party  to  a
    collective bargaining agreement.

              (l)  Intellectual   Property  Rights.     The  Company  and its
    Subsidiaries own  or  possess  adequate rights  or  licenses to  use  all
    trademarks, trade  names,  service  marks,  service  mark  registrations,
    service names, patents, patent rights, copyrights, inventions,  licenses,
    approvals,  governmental   authorizations,  trade   secrets  and   rights
    necessary to conduct their respective businesses as now conducted in  all
    material respects.  Except as set forth on Schedule 2.1(l) or in  the SEC
    Documents, none of the Company's trademarks, trade names, service  marks,
    service  mark  registrations,  service  names,  patents,  patent  rights,
    copyrights, inventions, licenses,  approvals, government  authorizations,
    trade secrets  or  other intellectual  property  rights have  expired  or
    terminated, or are expected to  expire or terminate within two (2)  years
    from the date of this Agreement.  The Company and its Subsidiaries do not
    have any knowledge of any infringement by the Company or its Subsidiaries
    of trademark,  trade  name rights,  patents, patent  rights,  copyrights,
    inventions,  licenses,  service   names,  service  marks,  service   mark
    registrations, trade secret or other similar rights of others, or of  any
    such development  of  similar or  identical  trade secrets  or  technical
    information by others. Except as set  forth on Schedule 2.1(l) or in  the
    SEC Documents,  there is  no claim, action  or proceeding  being made  or
    brought against, or to the Company's knowledge, being threatened against,
    the Company or its Subsidiaries regarding trademarks, trade name  rights,
    patents, patent rights, inventions, copyrights, licenses, service  names,
    service  marks,  service  mark  registrations,  trade  secrets  or  other
    infringement.   The  Company and  its  Subsidiaries have  taken  security
    measures that they in good faith deem reasonable to protect the  secrecy,
    confidentiality and value of all of their intellectual properties.

              (m)  Environmental  Laws.   To  the  Company's  knowledge after
    reasonable  inquiry,  the  Company  and  its  Subsidiaries  (i)  are   in
    compliance with all applicable foreign, federal, state and local laws and
    regulations relating to  the protection of  human health and safety,  the
    environment or  hazardous or toxic  substances or  wastes, pollutants  or
    contaminants ("Environmental  Laws"),  (ii)  have received  all  permits,
    licenses  or   other  approvals   required  of   them  under   applicable
    Environmental Laws to conduct  their respective businesses and (iii)  are
    in compliance with all terms and conditions of any such permits, licenses
    or approvals.

              (n)  Title.    The  Company  and  its Subsidiaries  own no real
    property.   The Company  and its  Subsidiaries have  good and  marketable
    title to all  personal property owned  by them which  is material to  the
    business of the Company and its Subsidiaries, in each case free and clear
    of all material liens and encumbrances (except those of secured  lenders)
    and all material defects.  Any material real property and facilities held
    under lease by the  Company or any of  its Subsidiaries are held by  them
    under valid, subsisting  and enforceable leases  with such exceptions  as
    are not material and do not  interfere with the use made and proposed  to
    be made  by  the  Company  and  its Subsidiaries  of  such  property  and
    buildings, or the personal property in them.

              (o)  Insurance.   The Company and each  of its Subsidiaries are
    insured by insurers of  recognized financial responsibility against  such
    losses and  risks  and  in such  amounts  as  management of  the  Company
    reasonably believes  to be  prudent and  customary in  the businesses  in
    which the Company and its Subsidiaries are engaged.  Neither the  Company
    nor any such Subsidiary has been refused any insurance coverage sought or
    applied for  and neither  the Company  nor  any such  Subsidiary has  any
    reason to  believe  that  it will  not  be  able to  renew  its  existing
    insurance coverage as and when such coverage expires or to obtain similar
    coverage from  similar  insurers  as may  be  necessary to  continue  its
    business at a  cost that  would not materially  and adversely affect  the
    condition,  financial  or  otherwise,   or  the  earnings,  business   or
    operations of the Company and its Subsidiaries taken as a whole.

              (p)  Regulatory  Permits.    The Company  and its  Subsidiaries
    possess all  certificates,  authorizations  and  permits  issued  by  the
    appropriate federal, state  or foreign regulatory authorities,  necessary
    to conduct their respective  businesses, and neither the Company nor  any
    such Subsidiary has  received any notice  of proceedings relating to  the
    revocation or  modification  of any  such certificate,  authorization  or
    permit.

              (q)  Internal Accounting Controls.  The Company and each of its
    Subsidiaries maintain a system of internal accounting controls sufficient
    to provide  reasonable assurance that  (i) transactions  are executed  in
    accordance with  management's general  or specific  authorizations,  (ii)
    transactions are recorded as necessary to permit preparation of financial
    statements in conformity  with generally  accepted accounting  principles
    and to maintain asset accountability, (iii) access to assets is permitted
    only in accordance  with management's  general or specific  authorization
    and (iv)  the recorded  accountability for  assets is  compared with  the
    existing assets at reasonable  intervals and appropriate action is  taken
    with respect to any differences.

              (r)  Foreign  Corrupt Practices  Act.  Neither the Company, nor
    any director, officer, agent,  employee or other person acting on  behalf
    of the Company or any Subsidiary has, in the course of acting  for, or on
    behalf of, the Company,  directly or indirectly used any corporate  funds
    for any  unlawful  contribution, gift,  entertainment or  other  unlawful
    expenses relating to political activity; directly or indirectly made  any
    direct or indirect unlawful payment to any foreign or domestic government
    official or employee from corporate funds; violated or is in violation of
    any provision  of the  U.S. Foreign  Corrupt  Practices Act  of 1977,  as
    amended, or any  similar treaties  of the United  States; or directly  or
    indirectly made any bribe, rebate, payoff, influence payment, kickback or
    other unlawful payment  to any  foreign or domestic  government or  party
    official or employee.

              (s)  Tax  Status.  The Company and each of its Subsidiaries has
    made or filed all  United States federal and  state income and all  other
    tax returns,  reports and declarations  required by  any jurisdiction  to
    which it is subject (unless and  only to the extent that the Company  and
    each of its Subsidiaries has set aside on its books provisions reasonably
    adequate for the payment of all unpaid and unreported taxes) and has paid
    all taxes  and  other  governmental  assessments  and  charges  that  are
    material in  amount,  shown or  determined  to be  due on  such  returns,
    reports and declarations, except those being contested in good faith  and
    has set aside on its books provisions reasonably adequate for the payment
    of all taxes for periods subsequent to the periods to which such returns,
    reports or declarations apply.  There are no unpaid taxes in any material
    amount claimed to be due by the taxing authority of any jurisdiction, and
    the Company is not aware of any basis for any such claim.

              (t)  Certain  Transactions.   Except  as  set forth on Schedule
    2.1(t) and in the SEC Documents filed on EDGAR at least five  (5) trading
    days prior to the date hereof, and other than the grant of  stock options
    and other employee compensation approved by the Compensation Committee of
    the Board of Directors of the Company, none of the officers or  directors
    of the Company is presently a  party to any transaction with the  Company
    or any  of  its  Subsidiaries  (other  than for  services  as  employees,
    officers and  directors),  including  any contract,  agreement  or  other
    arrangement providing for the furnishing of services to or by,  providing
    for rental  of  real  or  personal  property to  or  from,  or  otherwise
    requiring payments to or from any officer, director or such employee  or,
    to the knowledge of  the Company, any corporation, partnership, trust  or
    other entity in which  any officer, director or  any such employee has  a
    substantial interest or is an officer, director, trustee or partner.

              (u)  Dilutive Effect.  The Company understands and acknowledges
    that the  number of  Shares of  Common  Stock issuable  pursuant to  this
    Agreement will increase  in certain circumstances.   The Company  further
    acknowledges that,  subject to  such limitations  and  conditions as  are
    expressly set forth in the Transaction Documents, its obligation to issue
    Fill-up Warrants, Warrant Shares  and Additional Shares pursuant to  this
    Agreement is absolute and unconditional regardless of the dilutive effect
    that any  such issuance  may have  on  the ownership  interests of  other
    shareholders of the Company.

              (v)  Application of Takeover Protections.  The completion of the
    transactions contemplated by the  Transaction Documents will not, in  the
    absence of  any other  acquisitions  of Common  Stock by  the  Investors,
    trigger  any   anti-takeover  provision   contained  in   the   Company's
    Certificate of Incorporation or By-Laws or Delaware law.

              (w)  Rights  Plan.    Neither  the   Company  nor  any  of  its
    Subsidiaries has adopted a shareholder rights plan or similar arrangement
    relating to accumulations  of beneficial ownership  of Common Stock or  a
    change in control of the Company.

              (x)  Form S-3.   The Company is eligible to file the Registration
    Statement (as defined in the Registration Rights Agreement) for secondary
    offerings on Form S-3 (as in effect on the date of this  Agreement) under
    the 1933 Act and rules promulgated thereunder.

              (y)  Brokers.   Except for retaining Cardinal Capital Management,
    Inc. ("Cardinal"), the Company and its Subsidiaries have taken no  action
    which  would  give  rise  to  any  claim  by  any  person  for  brokerage
    commissions, finder's  fees  or  similar  payments by  the  Company,  its
    Subsidiaries  or  the  Investor   relating  to  this  Agreement  or   the
    transactions contemplated hereby.   The payment of any fees, expenses  or
    other amounts to  Cardinal shall be  the exclusive responsibility of  the
    Company.

          Section 2.2  Representations  and  Warranties  of  the  Investors.
    Each Investor hereby makes the following representations and warranties to
    the Company as of the  date  hereof as to  itself, on the Closing Date and
    on the date of any Additional Closing required by such Investor:

              (a)  Accredited Investor  Status; Sophisticated Investor.   The
    Investor is  an "accredited  investor" as that  term is  defined in  Rule
    501(a) of  Regulation  D under  the  1933 Act.    The Investor  has  such
    knowledge and experience  in financial  and business matters  that it  is
    capable of evaluating  the merits and risks  of investment in the  Common
    Stock.

              (b)  Information.   The Investor and its advisors, if any, have
    been furnished with all materials relating to the business, finances  and
    operations of  the  Company  which  have  been  requested  and  materials
    relating to the offer  and sale of the  Initial Shares and Warrants  (and
    the other  shares of  Common Stock  issuable hereunder)  which have  been
    requested by the Investor.  The  Investor and its advisors, if any,  have
    been afforded the opportunity to  ask questions of the Company.   Neither
    such inquiries nor  any other due  diligence investigations conducted  by
    the Investor  or  its  advisors, if  any,  or its  representatives  shall
    modify, amend or  affect the  Investor's right to  rely on the  Company's
    representations and  warranties  contained in  Section  2.1 above.    The
    Investor understands  that its  investment in  the Common  Stock and  the
    Warrants involves a high  degree of risk.   The Investor has sought  such
    accounting, legal and tax advice  as it has considered necessary to  make
    an informed investment decision with respect to its acquisition thereof.

              (c)  No  Governmental Review.  The Investor understands that no
    United States  federal  or  state  agency  or  any  other  government  or
    governmental  agency  has  passed  on  or  made  any  recommendation   or
    endorsement of the  Common Stock  or the fairness  or suitability of  the
    investment in  Common Stock  nor  have such  authorities passed  upon  or
    endorsed the  merits of  the offering  of  the Common  Stock or  Warrants
    hereunder.

              (d)  Authorization;  Enforcement.  This Agreement, the Warrants
    and  the  Registration  Rights  Agreement  have  been  duly  and  validly
    authorized, executed and delivered on behalf of the Investor and each  is
    a valid and  binding agreement  of the Investor  enforceable against  the
    Investor in accordance  with its terms,  subject as to enforceability  to
    general principles of  equity and  to applicable bankruptcy,  insolvency,
    reorganization, moratorium, liquidation  and other similar laws  relating
    to, or  affecting  generally, the  enforcement of  applicable  creditors'
    rights and remedies.  The Investor has the requisite corporate power  and
    authority to enter into and perform its obligations under this Agreement,
    the Registration Rights Agreement  and each other agreement entered  into
    by the parties hereto in connection with the transactions contemplated by
    this Agreement.

              (e)  Residency.  The Investor is a resident of the jurisdiction
    indicated on Schedule 1.

              (f)  No  Conflicts.  The execution, delivery and performance of
    this Agreement and the Registration Rights Agreement by the Investor  and
    the consummation by the Investor of the transactions contemplated  hereby
    and thereby will not result  in a violation of the partnership  agreement
    or other documents of organization of the Investor.

              (g)  Regulatory  Status.   The Investor is  not itself a broker-
    dealer.

              (h)  Investment  Representation.  The Investor is purchasing the
    Initial Shares and Initial  Warrants for its own  account and not with  a
    view to distribution other than pursuant to the 1933 Act or an  exemption
    therefrom. The Investor has been advised and understands that none of the
    Initial Shares  or the  Initial Warrants  or other  Securities have  been
    registered under  the  1933 Act  or  under the  "blue  sky" laws  of  any
    jurisdiction and  may  be  resold  only  if registered  pursuant  to  the
    provisions of  the  1933 Act  or  if an  exemption from  registration  is
    available, except under circumstances where neither such registration nor
    such an exemption is required by law.  The Investor has been  advised and
    understands that  the  Company is  issuing  the Initial  Shares,  Initial
    Warrants and, to  the extent issued,  other Securities in reliance  upon,
    among other things,  the representations and  warranties of the  Investor
    contained in  this Section  2.2 in  concluding  that such  issuance is  a
    "private offering" and is exempt from the registration provisions of  the
    1933 Act.

              (i)  Brokers.  The Investor has taken no action which would give
    rise to any claim by any person for brokerage commissions, finder's  fees
    or similar  payments by  the Company  or  the Investor  relating to  this
    Agreement or the transactions contemplated hereby.

                                  Article III

                                    Covenants

         Section 3.1  Registration  and  Listing;  Effective  Registration.
    Until the earlier of (i) three (3) months after the date on which all the
    Initial Shares, Additional Shares and  Warrant Shares are freely saleable
    by the Investors without limitations pursuant to Rule 144, or (ii) a merger
    in which the Company is not the surviving corporation or the consolidation
    or sale of  all or substantially  all of the  assets of the Company  (the
    "Termination Date"), the Company will cause the Common Stock to  continue
    at all times to be registered under Sections 12(b) or (g) of the Exchange
    Act, will comply in all  material respects with its reporting and  filing
    obligations under the  Securities Exchange Act  of 1934, as amended  (the
    "Exchange Act"),  and  will not  take  any action  or file  any  document
    (whether or not permitted by the Exchange Act or the rules thereunder) to
    terminate or suspend  such reporting and  filing obligations.  Until  the
    Termination Date, the Company shall use its best efforts to continue  the
    listing or trading  of the  Common Stock on  the Nasdaq National  Market,
    Nasdaq SmallCap  Market,  New  York  Stock  Exchange  or  American  Stock
    Exchange (each, an  "Approved Market") and  shall comply in all  material
    respects with the Company's reporting, filing and other obligations under
    the bylaws or rules of the  Approved Market on which the Common Stock  is
    listed.

         Section 3.2  Replacement  Certificates.    The certificate(s)
    representing the Securities held by any Investor (or then holder) may be
    exchanged  by the Investor (or such holder) at any time and from time  to
    time  for certificates with different denominations representing an equal
    aggregate number  of Securities as  requested  by the Investor (or such
    holder)  upon surrendering the  same.  Lost certificates will be replaced
    upon  the delivery to  the Company  of an affidavit of loss.  The Company
    will deliver such  substitute certificates within three trading days.  No
    service charge  will  be  made  for  such  registration  of  transfer  or
    exchange.

         Section 3.3  Securities Compliance.   The Company  shall notify the
    SEC and the Principal  Market, in accordance with their  requirements, of
    the transactions contemplated by this  Agreement,  the  Warrants and  the
    Registration Rights Agreement, and shall take all other necessary  action
    and proceedings as may be required and permitted by applicable law,  rule
    and regulation, for  the legal and valid  issuance of the Securities  and
    the Warrants.

         Section 3.4  Use of  Proceeds.   The Company  agrees that the net
    proceeds received by the Company from the sale of the Securities hereunder
    shall be used for legally permitted purposes.

         Section 3.5  Reservation of Additional Shares.

              (a)  The  Company  shall  reserve  all  authorized but unissued
    Securities for issuance  to the Investors pursuant  to the terms of  this
    Agreement.

              (b)  The Company shall at all times reserve and keep  available
    out of its authorized but unissued shares of Common Stock, solely for the
    purpose of  effecting  the  exercise of  the  Warrants  and the  sale  of
    Additional Shares, such  number of  its shares of  Common Stock as  shall
    from time to time be sufficient  to effect any such exercises, and if  at
    any time the  number of  authorized but unissued  shares of Common  Stock
    shall not  be sufficient,  the Company  will take  such corporate  action
    without delay as  may, in  the opinion of  its counsel,  be necessary  to
    increase its  authorized but  unissued  shares of  Common Stock  to  such
    number of  shares as  shall  be sufficient  for such  purpose,  including
    without limitation  engaging  in  best  efforts to  promptly  obtain  the
    requisite shareholder approval.  If at any time the number of  authorized
    but unissued Warrant  Shares or  Additional Shares is  not sufficient  to
    effect such exercises and sales in full, the Investors shall be  entitled
    to, inter alia, the redemption rights provided in the Registration Rights
    Agreement.

         Section 3.6  Form D; Blue  Sky Laws.   The Company agrees to file a
    Form  D with respect to the Securities and Warrants, as required under
    Regulation D and  to provide  a copy  thereof  to the Investors and their
    counsel promptly after such filing.  The Company shall, on or before the
    Closing Date, take such action as the Company shall have reasonably
    determined is necessary to qualify the Securities for sale to the Investors
    under applicable securities or "blue sky" laws of the states of the United
    States (or to  obtain an  exemption from such  qualification), and  shall
    provide evidence of any such action  so taken to the Investors and  their
    counsel on or prior to the Closing Date.

         Section 3.7  Publicity.   Immediately following the contemplation of
    the Closing, the Fill-up Closing or the Additional Investment Closing, as
    applicable, the Company shall issue a press release with respect to  this
    Agreement and/or such  transaction in a form  which has been reviewed  by
    and is reasonably acceptable to the Investors.

         Section 3.8  No Inside Information.   The Company shall not provide,
    and shall cause its agents not to provide, any Investor with any material
    non-public information.  Any such information received by an Investor may
    be publicly disclosed by such Investor without liability.

         Section 3.9  Transactions With Affiliates.   The Company agrees that
    any transaction or arrangement between it or any of its Subsidiaries and
    any affiliate or employee of the Company shall be effected on an arms'
    length basis in accordance with customary commercial practice and, except
    with respect to grants of options and stock to service providers, including
    employees, shall  be approved  by  a majority  of the  Company's  outside
    directors.  All  such transactions  or arrangements in  existence on  the
    date of  this Agreement  have been disclosed  in Schedule  3.09, and  all
    future arrangements  shall,  consistent with  Section 3.8,  be  disclosed
    promptly to the Investors.

         Section 3.10  Right of First Offer.   From the date hereof until the
    first anniversary of the Closing Date, the Company shall not issue or sell,
    or agree to issue or  sell any equity or debt securities of the Company or
    any of its Subsidiaries (or any security convertible into or  exercisable
    or exchangeable,  directly or indirectly,  for equity  securities of  the
    Company or any of its subsidiaries) ("Future Securities") other than in a
    registered public offering of  securities ("Future Offering") unless  the
    Company shall have  first delivered to each  Investor, at least ten  (10)
    business days  prior to  the  closing of  such Future  Offering,  written
    notice describing in detail  the proposed Future Offering, including  the
    terms and  conditions  thereof,  and  providing  each  Investor  and  its
    affiliates an exclusive  option during the  ten (10) business day  period
    following delivery of such  notice to purchase up  to the full amount  of
    the Future Securities  being offered in the  Future Offering on the  same
    terms as contemplated by  such Future Offering (the limitations  referred
    to in this sentence are collectively referred to as the "Capital  Raising
    Limitations"); provided that if oversubscribed, the Future Offering  will
    be allocated to the Investors pro rata in proportion to the amount of the
    Investors' purchase  of Initial Shares  hereunder.   The Capital  Raising
    Limitations shall  not apply  to issuances  of Future  Securities (i)  in
    connection with a strategic alliance, (ii) in connection with a financing
    with a commercial  bank, or  (iii) to officers,  directors, employees  or
    bona fide consultants or agents  of the Company in exchange for  services
    provided to  the Company  and not  as a component  of a  financing.   The
    Company shall prohibit any Common  Stock or other security issued by  the
    Company subject to  the Capital Raising  Limitation but not purchased  by
    any Investor  from being  converted, exercised  or resold  until the  day
    following the first anniversary of the date of the Closing and shall take
    all actions necessary (including,  without limitation, the issuance of  a
    stop transfer order) to effect such prohibition.

         Section 3.11  Certain Sales.  Each Investor agrees it shall not engage
    in  any short sales of the Common Stock with the intention of reducing the
    price of the Common Stock  on the Principal Market.  Notwithstanding  the
    foregoing, the  Company acknowledges that  there is  no presumption,  nor
    will there be deemed to be  a presumption, that any sales by an  Investor
    (including short sales) are made with the intent of reducing the price of
    the Common Stock on the Principal Market, even if the price of the Common
    Stock on the Principal Market falls during the period in which such sales
    are occurring.

                                   Article IV

                           [Intentionally Left Blank]

                                   Article V

                             Conditions to Closings

         Section 5.1  Conditions Precedent to the Obligation of the Company to
    Sell.  The obligation hereunder of  the Company to issue and/or sell  the
    Initial Shares and Initial Warrants  to the Investors at the Closing  and
    to issue and/or sell Additional Shares and Additional Warrants elected to
    be purchased  by the  Investors is  subject  to the  satisfaction, at  or
    before the  applicable  closing, as  the  case may  be,  of each  of  the
    applicable conditions  set forth  below.   These conditions  are for  the
    Company's sole benefit and  may be waived by  the Company at any time  in
    its sole discretion.

              (a)  Accuracy of the Investors' Representations and Warranties.
    The representations  and warranties  of the  Investors will  be true  and
    correct in all material respects as  of the date when made and as of  the
    Closing Date and as of any Additional Closing.

              (b)  Performance  by  the Investors.  The Investors shall  have
    performed all  agreements and  satisfied all  conditions  required to  be
    performed or satisfied by the Investors at or prior to the Closing or any
    Additional Closing,  as  the  case  may  be,  including  payment  of  the
    applicable purchase price.

              (c)  No Injunction.  No statute, rule,  regulation,  executive
    order, decree,  ruling or injunction  shall have  been enacted,  entered,
    promulgated or  endorsed  by  any  court  or  governmental  authority  of
    competent jurisdiction  which prohibits the  consummation of  any of  the
    transactions contemplated by the Transaction Documents.

         Section 5.2  Conditions Precedent to the Obligation of the Investors
    to Purchase.  The obligation hereunder of the Investors to acquire and pay
    for the Initial Shares and the  Initial Warrants at the Closing, and  the
    election of  the  Investors to  purchase  Additional Shares  and  receive
    Additional Warrants at any Additional Closing, if any, is subject to  the
    satisfaction, at  or  before  the  applicable  closing, of  each  of  the
    applicable conditions  set forth  below.   These conditions  are for  the
    Investors' benefit and  may be  waived by the  Investors at  any time  in
    their sole discretion.

              (a)  Accuracy of the Company's Representations and  Warranties.
    The representations  and warranties  of  the Company  shall be  true  and
    correct in all material respects as  of the date when made and as of  the
    applicable  closing  date  as  though  made  at  that  time  (except  for
    representations and  warranties expressly as  of an  earlier date,  which
    shall be true and correct in all material respects as of such date).

              (b)  Performance  by the  Company.    The  Company  shall  have
    performed all  agreements and  satisfied all  conditions  required to  be
    performed or  satisfied by  the Company  at  or prior  to the  applicable
    closing,  including,   without  limitation,   delivery  of   certificates
    representing the Securities and the Warrants, as applicable.

              (c)  Nasdaq Trading.   Trading in  the Company's  Common  Stock
    shall not  have  been suspended  by  the SEC  and trading  in  securities
    generally as reported by the Principal Market (or other Approved  Market)
    shall not have been suspended or  limited, and the Common Stock shall  be
    listed on an Approved Market.

              (d)  No  Injunction.   No statute, rule, regulation,  executive
    order, decree,  ruling or injunction  shall have  been enacted,  entered,
    promulgated or  endorsed  by  any  court  or  governmental  authority  of
    competent jurisdiction  which prohibits the  consummation of  any of  the
    transactions contemplated by Transaction  Documents.  The NASD shall  not
    have objected or indicated that it may object to the consummation of  any
    of the transactions contemplated by this Agreement.

              (e)  Opinion of Counsel.  The Investors shall have received  an
    opinion of counsel to the Company in the applicable form attached  hereto
    as Exhibit 5.2(e) and such other opinions, certificates and documents  as
    the Investors or their  counsel shall reasonably require incident to  the
    closing.

              (f)  Registration Rights Agreement.    The  Company  and   the
    Investors shall  have  executed  and delivered  the  Registration  Rights
    Agreement in the form and substance of Exhibit 5.2(f) attached hereto.

              (g)  Officer's Certificate.  The Company shall have delivered to
    the Investors  a  certificate  or  certificates  in  form  and  substance
    satisfactory to the Investors and the Investors' counsel, executed by  an
    officer of  the  Company, certifying  as  to satisfaction  of  applicable
    closing conditions, incumbency of signing officers, and the true, correct
    and complete nature  of the Certificate  of Incorporation, By-laws,  good
    standing and authorizing resolutions of the Company.

              (h)  Due  Diligence.   The Investors shall have completed their
    business, financial and legal due diligence to their sole satisfaction.

              (i)  Miscellaneous.    The Company  shall have delivered to the
    Investors such other documents relating to the transactions  contemplated
    by this  Agreement  as  the Investors  or  their counsel  may  reasonable
    request.

         Section 5.3  Closing Date Deliveries.

              (a)  On  the  Closing  Date, the  Company  shall deliver to the
    Investor:

                     (i)   Certificates  representing   the   Initial Shares;

                     (ii)  Initial Warrants in the form attached  as Annex A;

                     (iii) The certificate referred to in Section 5.2(g) above;

                     (iv)  The evidence of blue sky filing  required by
                           Section 3.6;

                     (v)   The executed Registration Rights Agreement; and

                     (vi)  The opinion of counsel referred to in Section 5.2(e).

              (b)  On  the Closing  Date, the  Investors shall  deliver to  the
    Company:

                     (i)   The Aggregate Purchase Price set forth  on
                           Schedule I hereto; and

                     (ii)  The executed Registration Rights Agreement.

         Section 5.4  Company Deliveries  at Fill-up and  Additional Closings.
    On the date of each Fill-up Closing or Additional Closing, the Company shall
    deliver to the Investor:

                     (i)   Certificates representing  any  applicable
                           Common Stock issuable to the Investors;

                     (ii)  The certificate  referred  to in  Section
                           5.2(g) above;

                     (iii) All applicable Warrants;

                     (iv)  Evidence  of   any  necessary  blue   sky
                           filings required by Section 3.6; and

                     (v)   The  opinion  of counsel  referred  to  in
                           Section 5.2(e) above.

                                   Article VI

                                Legend and Stock

              Each certificate representing the Common Stock issued hereunder
    shall be stamped  or otherwise imprinted  with a legend substantially  in
    the following form:

              THESE SECURITIES  HAVE NOT BEEN  REGISTERED FOR  OFFER OR  SALE
    UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS.   THEY MAY
    NOT BE  SOLD  OR  OFFERED  FOR  SALE  EXCEPT  PURSUANT  TO  AN  EFFECTIVE
    REGISTRATION STATEMENT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
    LAW OR AN APPLICABLE EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

              The  Company   agrees  to   reissue  within   3  trading   days
    certificates for Common Stock without the legend set forth above at  such
    time as such Common  Stock is sold to  a purchaser or purchasers who  (in
    the opinion of counsel  to the seller or  such purchaser(s), in form  and
    substance reasonably  satisfactory to the  Company and  its counsel)  are
    able to dispose  of such shares  publicly without registration under  the
    Act.

              Any Common Stock issued pursuant to exercise of Warrants  shall
    bear a legend in  the same form as  the legend indicated above;  provided
    that such legend shall be removed  from the Common Stock and the  Company
    shall issue new certificates without such legend if such Common Stock  is
    registered for resale under the 1933  Act, or (iii) such Common Stock  is
    sold to a purchaser or purchasers  who (in the opinion of counsel to  the
    seller  or   such  purchaser(s),   in  form   and  substance   reasonably
    satisfactory to the Company and it  counsel) are able to dispose of  such
    shares publicly  without  registration  under the  1933  Act.   Upon  the
    applicable trade  date of  each such sale,  the Company  agrees to  issue
    within 3  trading days new  certificates representing  such Common  Stock
    without such  legend.   The  Investor  agrees to  sell the  Common  Stock
    represented by  the new certificates  in accordance  with the  applicable
    prospectus delivery requirements (if  copies of a current prospectus  are
    provided to  the  Investors by  the  Company) or  in accordance  with  an
    exemption from the registration requirements of the 1933 Act.

              Nothing herein shall  limit the right  of any holder to  pledge
    these securities  pursuant  to  a bona  fide  margin account  or  lending
    arrangement entered  into in  compliance with  law, including  applicable
    securities laws.

                                  Article VII

                                 Indemnification

              In consideration of  the Investors'  execution and delivery  of
    this Agreement, the Warrants and the Registration Rights Agreement and in
    addition to all of the Company's other obligations under the  Transaction
    Documents, the Company shall defend, protect, indemnify and hold harmless
    the Investors and all of their partners, officers, directors,  employees,
    members and  direct  or  indirect  investors  and any  of  the  foregoing
    persons' agents or other representatives (including, without  limitation,
    those retained in connection  with the transactions contemplated by  this
    Agreement) (collectively, the "Indemnitees") from and against any and all
    actions, causes of action, suits, claims, losses, costs, penalties, fees,
    liabilities  and   damages,   and   expenses  in   connection   therewith
    (irrespective of whether any such Indemnitee is a party to the action for
    which indemnification  hereunder  is  sought), and  including  reasonable
    attorneys'  fees  and  disbursements  (the  "Indemnified   Liabilities"),
    incurred by any Indemnitee as a result of, or arising out of, or relating
    to (a) any misrepresentation or breach of any representation or  warranty
    made by the Company in the Transaction Documents or any other certificate
    or document  contemplated  hereby  or  thereby,  (b) any  breach  of  any
    covenant, agreement  or  obligation  of  the  Company  contained  in  the
    Transaction Documents or any  other certificate or document  contemplated
    hereby or thereby, (c) any cause of action, suit or claim brought or made
    against such Indemnitee by a third party and arising out of or  resulting
    from (i) the execution,  delivery, performance, breach by the Company  or
    enforcement of  the  Transaction  Documents  or  any  other  certificate,
    instrument  or  document  contemplated   hereby  or  thereby,  (ii)   any
    transaction financed or to be financed  in whole or in part, directly  or
    indirectly, with the proceeds of the issuance of the Securities or  (iii)
    the status of  the Investor or  holder of the  Securities or Warrants  as
    investors in  the  Company,  and (d)  the  enforcement of  this  Section.
    Notwithstanding the foregoing, Indemnified Liabilities shall not  include
    any liability  of  any  Indemnitee to  the  extent  arising out  of  such
    Indemnitee's willful misconduct or  fraudulent action(s).  To the  extent
    that the foregoing  undertaking by the  Company may be unenforceable  for
    any reason,  the  Company  shall make  the  maximum contribution  to  the
    payment and satisfaction of each of the Indemnified Liabilities which  is
    permissible under applicable law.  Except as otherwise set forth  herein,
    the mechanics and procedures  with respect to the rights and  obligations
    under this Article VIII shall be the same as those set forth in Section 6
    (other  than  Section  6(b))   of  the  Registration  Rights   Agreement,
    including, without  limitation,  those  procedures with  respect  to  the
    settlement of claims and Company's right to assume the defense of claims.

                                  Article VIII

                                9.99% Limitation.

         Section 8.1  Limitation

              (a)  Notwithstanding anything to the contrary contained herein,
    the number  of  shares  of Common  Stock  that  may be  acquired  by  the
    Investors as Additional Shares or upon exercise of any Warrants shall not
    exceed a number that, when added to the total number of shares  of Common
    Stock deemed beneficially owned by the Investors (other than by virtue of
    the ownership of securities that have limitations on the Investors' right
    to convert,  exercise or  purchase similar  to the  limitation set  forth
    herein), together  with all shares  of Common  Stock deemed  beneficially
    owned by the Investors' "affiliates" (as defined in  Rule 144 of the 1933
    Act) (the "Aggregation Parties") that would be aggregated for purposes of
    determining whether  a  group  under  Section  13(d)  of  the  Securities
    Exchange Act of 1934, as amended, exists, would exceed 9.99% of the total
    issued  and  outstanding  shares  of  the  Company's  Common  Stock  (the
    "Restricted Ownership Percentage"); provided that (w) each Investor shall
    have the right at any time and from time to time to reduce its Restricted
    Ownership Percentage immediately upon notice to the Company and (x)  each
    Investor shall  have the  right at  any time and  from time  to time,  to
    increase its Restricted Ownership Percentage immediately in the event of:
    (i) any consolidation  or merger of  the Company with  or into any  other
    corporation or other entity or person (whether or not the Company is  the
    surviving  corporation),  or   any  other  corporate  reorganization   or
    transaction or series of related  transactions in which in excess of  50%
    of  the  Company's  voting   power  is  transferred  through  a   merger,
    consolidation, tender offer or  similar transaction, (ii) any person  (as
    defined in  Section 13(d)  of the  Securities  Exchange Act  of 1934,  as
    amended  (the  "Exchange  Act")),   together  with  its  affiliates   and
    associates (as such terms  are defined in Rule  405 under the 1933  Act),
    beneficially owns or is deemed to beneficially own (as described in  Rule
    13d-3 under  the  Exchange  Act without  regard  to the  60-day  exercise
    period) in excess of 50% of the Company's voting power, (iii) there  is a
    replacement of more than one-half  of the members of the Company's  Board
    of Directors which is not  approved by those individuals who are  members
    of the Company's  Board of  Directors on the  date thereof,  in one or  a
    series of  related transactions  or (iv)  a sale  or transfer  of all  or
    substantially  all  of  the  assets  of  the  Company,  determined  on  a
    consolidated basis (each, a "Major Transaction").

              The Company's obligation to  issue additional shares of  Common
    Stock which  would  exceed  such  limit  or  the  limit  referred  to  in
    subparagraph (b) below shall  be suspended to the extent necessary  until
    such time, if any, as shares  of Common Stock (or portions thereof,  from
    time to  time)  may  be  issued  in compliance  with  such  restrictions;
    provided, however,  that such  obligation shall  terminate and  be of  no
    further force or effect after the third (3rd) anniversary of the  Closing
    Date with respect  to any  Initial Shares that  have not become  issuable
    prior to that date solely by reason of this Section 8.1.

              (b)  Each   time  (a  "Covenant   Time")  an  Investor  makes   a
    Triggering Acquisition  (as  defined below)  of  shares of  Common  Stock
    pursuant to  the  Transaction Documents  (the "Triggering  Shares"),  the
    Investors will  be deemed  to covenant  that  they will  not, during  the
    balance of  the day  on  which such  Triggering Acquisition  occurs,  and
    during the 61-day  period beginning immediately  after that day,  acquire
    additional shares of Common Stock pursuant to rights-to-acquire  existing
    at that Covenant Time, if the aggregate amount of such additional  shares
    so acquired  (without reducing  that amount  by  any dispositions)  would
    exceed (x) 9.99% of the number  of shares of Common Stock outstanding  at
    that Covenant Time (including the Triggering Shares) minus (y) the number
    of shares  of  Common  Stock actually  owned  by  the Investors  at  that
    Covenant Time  (regardless of  how or  when acquired,  and including  the
    Triggering Shares).  "Triggering  Acquisition" means with respect to  any
    Investor or Aggregation  Party (i)  the issuance of  the Initial  Shares;
    (ii) giving of an Additional Investment Notice; (iii) an exercise of  the
    Warrants; or (iv) the issuance of Warrant Shares or Additional Shares  or
    (v) any other acquisition  of Common Stock; provided, however, that  with
    respect to each event described  in the preceding clauses (ii) or  (iii),
    if the associated issuance of shares of Common Stock does not occur, such
    event shall cease to be a Triggering Acquisition and the related covenant
    under this  paragraph  shall  terminate.    At each  Covenant  Time,  the
    Investors shall be deemed to waive any right they would otherwise have to
    acquire shares of Common Stock to the extent that such acquisition  would
    violate any  covenant  given  by  the  Investors  under  this  paragraph.
    Notwithstanding anything to the  contrary in the Agreement, in the  event
    of a conflict  between any  covenant given under  this paragraph and  any
    obligation of the Investors to buy shares pursuant to this Agreement, the
    former shall  supersede  the  latter, and  the  latter shall  be  reduced
    accordingly.  The Investors shall endeavor in good faith to avoid such  a
    conflict.  For the avoidance of doubt:

                     (i)  The covenant to be given pursuant to this
              paragraph will be  given at  every Covenant Time  and
              shall be calculated  based on the circumstances  then
              in effect.  The making of a covenant at one  Covenant
              Time  shall  not   terminate  or  modify  any   prior
              covenants.

                     (ii)  The Investors may therefore from time to
              time be subject to multiple such covenants, each  one
              having been made  at a  different Covenant Time,  and
              some possibly  being  more restrictive  than  others.
              The Investors  must comply  with all  such  covenants
              then in effect.

                                   Article IX

                          Governing Law; Miscellaneous.

         Section 9.1  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
    INTERPRETED IN  ACCORDANCE  WITH  THE  LAWS  OF THE  STATE  OF  NEW  YORK
    APPLICABLE TO CONTRACTS TO  BE EXECUTED AND PERFORMED EXCLUSIVELY IN  NEW
    YORK.    EACH   PARTY  HEREBY  IRREVOCABLY   SUBMITS  TO  THE   EXCLUSIVE
    JURISDICTION OF THE STATE AND FEDERAL  COURTS SITTING IN THE CITY OF  NEW
    YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
    OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY  OR
    DISCUSSED HEREIN, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT
    IN ANY SUIT, ACTION  OR PROCEEDING, ANY CLAIM  THAT IT IS NOT  PERSONALLY
    SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION  OR
    PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF  SUCH
    SUIT, ACTION OR  PROCEEDING IS IMPROPER.   EACH PARTY HEREBY  IRREVOCABLY
    WAIVES PERSONAL SERVICE OF  PROCESS AND CONSENTS TO PROCESS BEING  SERVED
    IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF  TO SUCH
    PARTY AT THE  ADDRESS FOR  SUCH NOTICES TO  IT UNDER  THIS AGREEMENT  AND
    AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE  OF
    PROCESS AND NOTICE THEREOF.  NOTHING CONTAINED HEREIN SHALL BE DEEMED  TO
    LIMIT IN ANY WAY  ANY RIGHT TO SERVE  PROCESS IN ANY MANNER PERMITTED  BY
    LAW.    IF  ANY  PROVISION   OF  THIS  AGREEMENT  SHALL  BE  INVALID   OR
    UNENFORCEABLE IN ANY  JURISDICTION, SUCH  INVALIDITY OR  UNENFORCEABILITY
    SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF THE REMAINDER OF  THIS
    AGREEMENT IN THAT JURISDICTION  OR THE VALIDITY OR ENFORCEABILITY OF  ANY
    PROVISION OF THIS AGREEMENT IN ANY OTHER JURISDICTION.

         Section 9.2  Counterparts.  This Agreement may be executed in two or
    more identical counterparts, all of which shall be considered one and the
    same agreement  and shall become  effective when  counterparts  have been
    signed by each party  and delivered  to the  other party; provided that a
    facsimile signature shall be considered due execution and shall be binding
    upon the signatory thereto with the same force and effect as if the
    signature were an original, not a facsimile signature.

         Section 9.3  Headings.     The  headings  of  this Agreement are for
    convenience of  reference  and shall  not  form part  of, or  affect  the
    interpretation of, this Agreement.

         Section 9.4  Severability.  If any provision of this Agreement shall
    be invalid  or  unenforceable  in  any  jurisdiction,  such invalidity or
    unenforceability shall not affect  the validity or enforceability of  the
    remainder of  this Agreement  in  that jurisdiction  or the  validity  or
    enforceability  of  any  provision   of  this  Agreement  in  any   other
    jurisdiction.

         Section 9.5  Entire Agreement; Amendments; Waivers.

              (a)  This Agreement supersedes all other prior oral or  written
    agreements between  the  Investors,  the Company,  their  affiliates  and
    persons acting  on their  behalf with  respect to  the matters  discussed
    herein,  and  this  Agreement  and  the  instruments  referenced   herein
    (including  the   other  Transaction   Documents)  contain   the   entire
    understanding of the parties  with respect to the matters covered  herein
    and therein  and, except  as specifically  set forth  herein or  therein,
    neither the Company nor the Investors make any representation,  warranty,
    covenant or undertaking  with respect to such  matters.  No provision  of
    this Agreement  may be  amended other than  by an  instrument in  writing
    signed by the Company  and the Investor, and  no provision hereof may  be
    waived other than by an instrument in writing signed by the party against
    whom enforcement is sought.

              (b)  The Investors  may at any  time elect,  by notice  to  the
    Company, to waive  (whether  permanently  or temporarily, and subject  to
    such conditions, if any, as the Investors may specify in such notice) any
    of their  respective  rights  (but  not  obligations) under  any  of  the
    Transaction Documents to acquire shares of Common Stock from the Company,
    in which  event such  waiver shall be  binding against  the Investors  in
    accordance with its terms.

         Section 9.6  Notices.  Any notices,  consents,  waivers   or   other
    communications required or permitted to be given under the terms of  this
    Agreement must be in writing, must  be delivered by (i) courier, mail  or
    hand delivery  or  (ii)  facsimile,  and  will be  deemed  to  have  been
    delivered upon  receipt. The  addresses and  facsimile  numbers for  such
    communications shall be:

         If to the Company:

                   Telular Corporation
                   647 North Lakeview Parkway
                   Vernon Hills, IL  60061
                   Telephone:     (847) 247-9400
                   Facsimile:     (847) 247-0021
                   Attention:     Chief Financial Officer

         With a copy to:

                   Covington & Burling
                   1201 Pennsylvania Ave., N.W.
                   Washington, D.C.  20004
                   Telephone:     (202) 662-5258
                   Facsimile:     (202) 662-6291
                   Attention:     Michael E. Cutler, Esq.

         If to the Investors:

                   Halifax Fund, L.P.
                   c/o The Palladin Group, L.P.
                   195 Maplewood Avenue
                   Maplewood, New Jersey  07040
                   Telephone:     (973) 313-6400
                   Facsimile:     (973) 313-6493
                   Attention:     Mr. Steven Weiner

                   AND

                   Elliott Associates, L.P.
                   712 Fifth Avenue
                   New York, New York  10019
                   Telephone:     (212) 974-6000
                   Facsimile:     (212) 974-2092
                   Attention:     Mr. Brett Cohen

                   AND

                   Westgate International, L.P.
                   c/o Stonington Management Corporation
                   712 Fifth Avenue
                   New York, New York  10019
                   Telephone:     (212) 586-2999
                   Facsimile:     (212) 586-9467
                   Attention:     Mr. Brett Cohen

         With a copy to:

                   Kleinberg, Kaplan, Wolff & Cohen, P.C.
                   551 Fifth Avenue, 18th Floor
                   New York, New York 10176
                   Telephone:     212-986-6000
                   Facsimile:     212-986-8866
                   Attention:     Christopher P. Davis, Esq.

              Each party shall provide five (5) days prior written notice  to
    the other parties of any change in address, telephone number or facsimile
    number.  Written  confirmation of receipt (A)  given by the recipient  of
    such notice, consent, waiver or other communication, (B) mechanically  or
    electronically generated by the sender's facsimile machine containing the
    time, date, recipient facsimile number and an image of the first page  of
    such transmission or  (C) provided by  a nationally recognized  overnight
    delivery service  shall  be  rebuttable  evidence  of  personal  service,
    receipt by facsimile  or receipt from  a nationally recognized  overnight
    delivery service  in accordance  with clause  (i), (ii)  or (iii)  above,
    respectively.

         Section 9.7  Successors  and  Assigns.  Except as otherwise provided
    herein, this Agreement shall be binding upon and inure to the benefit  of
    the parties and  their respective successors  and assigns, including  any
    Permitted Assignee (as defined below).  The Company shall not assign this
    Agreement or  any  rights  or  obligations hereunder  without  the  prior
    written consent of  the Investor, including  by merger or  consolidation.
    The Investors may  assign some or  all of their  rights hereunder to  the
    other Investor, to  an affiliate of  either Investor or  to an entity  or
    fund which has the same principal investment adviser as either  Investor,
    without the  consent of  the Company,  and  to others,  with the  written
    consent of the Company (in each case, a "Permitted Assignee");  provided,
    however, that any  such assignment shall  not release the Investors  from
    their obligations hereunder unless  such obligations are assumed by  such
    assignee and the Company has consented to such assignment and assumption.
    Notwithstanding anything  to the  contrary contained  in the  Transaction
    Documents, the Investor  shall be  entitled to pledge  the Securities  or
    Warrants in connection with a bona fide margin account.

         Section 9.8  No Third  Party  Beneficiaries.   This  Agreement is
    intended for the  benefit of  the parties  hereto and  their respective
    permitted successors and  assigns, and  is not  for  the benefit  of,
    nor  may  any provision hereof be enforced by, any other person.

         Section 9.9  Survival.  The representations, warranties and agreements
    of the Company and  the Investors contained in the Agreement shall survive
    each of the  Closing and to the  extent applicable, each Fill-up  Closing
    and each Additional Closing, in each  case for a period which expires  on
    the second anniversary of the Closing Date.

         Section 9.10  Further  Assurances.  Each party  shall do and perform,
    or  cause to be done  and performed, all  such further acts  and things,
    and  shall execute and deliver all such other agreements, certificates,
    instruments and documents, as the other party may  reasonably request in
    order to carry out the intent and accomplish the purposes of this Agreement
    and the consummation of the transactions contemplated hereby.

         Section 9.11  Remedies.   Each Investor and each Permitted Assignee
    shall  have all  rights  and remedies  set forth in this  Agreement, the
    Warrants and the Registration Rights Agreement and all rights and remedies
    which such holders have been granted at any time under any other agreement
    or contract and all of the rights which such holders have under any  law.
    Any person having any rights under any provision of this Agreement  shall
    be entitled to enforce  such rights specifically (without posting a  bond
    or other security),  to recover damages  by reason of  any breach of  any
    provision of this Agreement and  to exercise all other rights granted  by
    law.  Each  Investor and  each Permitted Assignee  without prejudice  may
    withdraw, revoke or suspend its pursuit  of any remedy at any time  prior
    to its complete recovery as a result of such remedy.

         Section 9.12  Days.   Unless the context refers to "business days" or
    "trading days", all references herein to "days" shall mean calendar days.

         Section 9.13  Rescission  and Withdrawal  Right.   Notwithstanding
    anything to the contrary contained in (and without limiting any similar
    provisions of) the Transaction Documents, wherever the Investors exercise
    a  right, election, demand or option under a Transaction Document and the
    Company does not timely perform its related obligations within the periods
    therein provided, then  the Investors may  rescind or withdraw, in  their
    sole discretion from time to time upon written notice to the Company, any
    relevant notice, demand or election in whole or in part without prejudice
    to its future actions and rights.

         Section 9.14  Obligations  Absolute.   Each of  the Company  and the
    Investors agree that, its obligations under the Transaction Documents are
    (subject to any contrary applicable legal or  equitable principles to the
    extent they may render this paragraph  unenforceable and subject to other
    express provisions of the Transaction Documents) unconditional and absolute
    and not subject to any right of set off, counterclaim, delay or reduction.

         Section 9.15  Specific Performance.  The parties agree that a breach
    of this Agreement would cause  irreparable damage, and  accordingly it is
    agreed that the parties shall be entitled to an injunction or injunctions
    to prevent or cure breaches of this Agreement and to enforce specifically
    the terms and provisions hereof  without the necessity of posting a  bond
    or surety.

                                  *  *  *  *  *

                            [Signature Page Follows]

              IN WITNESS WHEREOF, the parties hereto have caused this  Common
    Stock Investment Agreement to  be duly executed as  of the date and  year
    first above written.

    COMPANY:                   INVESTORS:

    TELULAR CORPORATION        HALIFAX FUND, L.P.

                               By:  THE PALLADIN GROUP, L.P.
                                        Attorney-in-Fact
    By:
           Name:               By:  PALLADIN CAPITAL MANAGEMENT, LLC
           Title:                       General Partner

                                    By:

                                         Name:
                                         Title:

                              ELLIOTT ASSOCIATES, L.P.

<PAGE>
                              By:
                                  Elliot Greenberg
                                  Title:

                              By:  WESTGATE INTERNATIONAL, L.P.

                                  By:  MARTLEY INTERNATIONAL, INC.
                                            As Attorney-in-Fact

                                       By:
                                                 Elliot Greenberg
                                                 Vice President
<PAGE>
    List of Schedules

    Schedule 1                    Investments
    Schedule 2.1(a)               Organization and Qualification
    Schedule 2.1(c)               Capitalization
    Schedule 2.1(d)               No Conflicts
    Schedule 2.1(g)               Absence of Certain Changes
    Schedule 2.1(h)               Absence of Litigation
    Schedule 2.1(l)               Intellectual Property Rights
    Schedule 2.1(t)               Certain Transactions
    Schedule 3.09                 Transactions with Affiliates

    List of Exhibits

    Exhibit 5.2(e)                Opinion of Counsel
    Exhibit 5.2(f)                Registration Rights Agreement
    Exhibit 5.2(g)                Officers' Certificate
<PAGE>

                       SCHEDULE 1

                                          Number of   Number of    Aggregate
Investor                  Residence       Initial     Initial      Purchase
                                           Shares      Warrants      Price
Halifax Fund, L.P.        New Jersey       355,556      80,000    $ 8,000,000

Elliott Associates, L.P.  New York          44,444      10,000    $ 1,000,000

Westgate International    Cayman Islands    44,444      10,000    $ 1,000,000
L.P.
<PAGE>

                                 SCHEDULE 2.1(a)

                         ORGANIZATION AND QUALIFICATION

                          Telular  International, Inc.
                            (an Illinois Corporation)

                      Telular Adcor-Security Products, Inc.
                             (a Georgia Corporation)

                             Telular-WD Corporation
                            (a New York corporation)
<PAGE>

                                 SCHEDULE 2.1(c)

                                 CAPITALIZATION

                                      None
<PAGE>

                                 SCHEDULE 2.1(d)

                                  NO CONFLICTS

                                      None
<PAGE>

                                 SCHEDULE 2.1(g)

                           ABSENCE OF CERTAIN CHANGES

                                      None
<PAGE>

                                SCHEDULE 2.1 (h)

                              ABSENCE OF LITIGATION

                                      None
<PAGE>

                                SCHEDULE 2.1 (l)

                          INTELLECTUAL PROPERTY RIGHTS

                                      None
<PAGE>

                                 SCHEDULE 2.1 (t)

                              CERTAIN TRANSACTIONS

                                      None
<PAGE>

                                  SCHEDULE 3.09

                          TRANSACTIONS WITH AFFILIATES

                                      None
<PAGE>

                                     ANNEX A

    THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
    STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER REGULATION D
    PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR
    OTHERWISE.  THIS WARRANT SHALL NOT CONSTITUTE AN OFFER TO SELL NOR A
    SOLICITATION OF AN OFFER TO BUY THE SECURITIES IN ANY JURISDICTION IN
    WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.  THE SECURITIES ARE
    "RESTRICTED" AND MAY NOT BE RESOLD OR TRANSFERRED EXCEPT AS PERMITTED
    UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.

                      COMMON STOCK PURCHASE WARRANT

    No. 2000-W[ ]

    To Purchase Shares of $.01 Par Value Common Stock of

                           TELULAR CORPORATION

         THIS CERTIFIES that, for value received, [NAME OF INVESTOR] (the
    "Investor") is entitled, upon the terms and subject to the conditions
    hereinafter set forth, at any time on or after the date hereof and on or
    prior to 5:00 p.m. New York City Time on March 2, 2005 (the "Termination
    Date"), but not thereafter, to subscribe for and purchase from TELULAR
    CORPORATION, a Delaware corporation (the "Company"), 100,000 shares of
    Common Stock of the Company (the "Warrant Shares").  The "Exercise Price"
    is $29.25  The Exercise Price and the number of shares for which the
    Warrant is exercisable shall be subject to adjustment as provided herein.
    This Warrant is being issued in connection with the Common Stock
    Investment Agreement dated March 3, 2000 (the "Agreement") entered into
    between the Company and the Investor.

    1.   Title of Warrant.  Prior to the expiration hereof and subject to
         compliance with applicable laws, this Warrant and all rights
         hereunder are transferable, in whole or in respect of the right to
         purchase any part of the 100,000 Warrant Shares, at the office or
         agency of the Company by the holder hereof in person or by duly
         authorized attorney, upon surrender of this Warrant together with
         (a) the Assignment Form annexed hereto properly endorsed, and (b)
         any other documentation reasonably necessary to satisfy the Company
         that such transfer is in compliance with all applicable securities
         laws.

    2.   Authorization of Shares.  The Company covenants that all shares of
         Common Stock which may be issued upon the exercise of rights
         represented by this Warrant will, upon exercise of the rights
         represented by this Warrant and payment of the Exercise Price as set
         forth herein will be duly authorized, validly issued, fully paid and
         nonassessable and free from all taxes, liens and charges in respect
         of the issue thereof (other than taxes in respect of any transfer
         occurring contemporaneously with such issue or otherwise specified
         herein).
<PAGE>
    3.   Exercise of Warrant.

    (a)  Exercise of the purchase rights represented by this Warrant may be
         made at any time or times, in whole or in part but for not fewer
         than 10,000 Warrant Shares (unless fewer than 10,000 Warrant Shares
         underlie this Warrant), before the close of business on the
         Termination Date, or such earlier date on which this Warrant may
         terminate as provided in paragraph 11 below, by the surrender on any
         business day of this Warrant and the Notice of Exercise annexed
         hereto duly completed and executed, at the principal office of the
         Company (or such other office or agency of the Company as it may
         designate by notice in writing to the registered holder hereof at
         the address of such holder appearing on the books of the Company),
         together with delivery to the Company by such holder of all
         certifications or documentation reasonably necessary to establish,
         to the satisfaction of the Company, that any such exercise has been
         undertaken in compliance with all applicable federal and state
         securities laws, and upon payment of the full Exercise Price of the
         shares thereby purchased; whereupon the holder of this Warrant shall
         be entitled to receive a certificate for the number of shares of
         Common Stock so purchased.  Certificates for shares purchased
         hereunder shall be delivered to the holder hereof within three (3)
         Trading Days after the date on which this Warrant shall have been
         exercised as aforesaid.  Payment of the Exercise Price of the shares
         shall be by certified check or cashier's check or by wire transfer
         (of same day funds)  to an account designated by the Company in an
         amount equal to the Exercise Price multiplied by the number of
         shares being purchased.

    (b)  Alternatively, the Warrant holder may exercise this Warrant, in
         whole or in respect of the right to surrender up to 100,000
         Surrendered Shares (but for not fewer than 10,000 Deliverable
         Shares, unless fewer than 10,000 Deliverable Shares underlie this
         Warrant), in a "cashless" or "net-issue" exercise by delivering to
         the offices of the Company or any transfer agent for the Common
         Stock this Warrant, together with a Notice of Exercise specifying
         the number of Warrant Shares to be delivered to such Warrant holder
         ("Deliverable Shares") and the number of Warrant Shares with respect
         to which this Warrant is being surrendered in payment of the
         aggregate Exercise Price for the Deliverable Shares ("Surrendered
         Shares").

         The number of Deliverable Shares shall be calculated as follows:

         # of Deliverable Shares = # of Surrendered Shares x Fair Market
         Value of Common Stock less Exercise Price/Fair Market Value of
         Common Stock

         "Fair Market Value" shall have the meaning specified in Section
         12(c)

         In the event that the Warrant is not exercised in full, the number
         of Warrant Shares shall be reduced by the number of such Warrant
         Shares for which this Warrant is exercised and/or surrendered, and
         the Company, at its expense, shall within three (3) Trading Days
         issue and deliver to or upon the order of the Warrant holder a new
         Warrant of like tenor in the name of Warrant holder or as Warrant
         holder (upon payment by Warrant holder of any applicable transfer
<PAGE>
         taxes) may request, reflecting such adjusted Warrant Shares.

         All exercises will be deemed to occur as of the date of the Notice
         of Exercise, and certificates for shares of Common Stock purchased
         hereunder shall be delivered to the holder hereof within three (3)
         Trading Days after the date on which this Warrant shall have been
         exercised as aforesaid.  The Warrant holder may withdraw its Notice
         of Exercise under Section 3(a) or 3(b) at any time thereafter if the
         Company fails to timely deliver the relevant certificates to the
         Warrant holder as provided in this Agreement.

    (c)  In lieu of delivering physical certificates representing the Common
         Stock issuable upon exercise, provided the Company's transfer agent
         is participating in the Depository Trust Company ("DTC") Fast
         Automated Securities Transfer ("FAST") program, upon request of the
         Warrant Holder, the Company shall use its best efforts to cause its
         transfer agent to electronically transmit the Common Stock issuable
         upon exercise to the Warrant Holder by crediting the account of
         Warrant Holder's prime broker with DTC through its Deposit
         Withdrawal Agent Commission ("DWAC") system.  The time periods for
         delivery described in the immediately preceding paragraph shall
         apply to the electronic transmittals described herein.

         The term "Trading Day" means (x) if the Common Stock is listed on
         the New York Stock Exchange or the American Stock Exchange, a day on
         which there is trading on such stock exchange, or (y) if the Common
         Stock is not listed on either of such stock exchanges but sale
         prices of the Common Stock are reported on an automated quotation
         system, a day on which trading is reported on the principal
         automated quotation system on which sales of the Common Stock are
         reported, or (z) if the foregoing provisions are inapplicable, a day
         on which quotations are reported by National Quotation Bureau
         Incorporated.

    4.   No Fractional Shares or Scrip.  No fractional shares or scrip
         representing fractional shares shall be issued upon the exercise of
         this Warrant.

    5.   Charges, Taxes and Expenses.  Issuance of certificates for shares of
         Common Stock upon the exercise of this Warrant shall be made without
         charge to the holder hereof for any issue or transfer tax or other
         incidental expense in respect of the issuance of such certificate,
         all of which taxes and expenses shall be paid by the Company, and
         such certificates shall be issued in the name of the holder of this
         Warrant or in such name or names as may be directed by the holder of
         this Warrant; provided, however, that in the event certificates for
         shares of Common Stock are to be issued in a name other than the
         name of the holder of this Warrant, this Warrant when surrendered
         for exercise shall be accompanied by the Assignment Form attached
         hereto duly executed by the holder hereof; and provided further,
         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
         of any Warrant certificates or any certificates for the Warrant
         Shares other than the issuance of a Warrant Certificate to the
         Investor in connection with the Investor's surrender of a Warrant
         Certificate upon the exercise of less than all of the Warrants
         evidenced thereby, and the Company shall not be required to issue or
         deliver such certificates unless or until the person or persons
<PAGE>
         requesting the issuance thereof shall have paid to the Company the
         amount of such tax or shall have established to the satisfaction of
         the Company that such tax has been paid.

    6.   Closing of Books.  The Company will at no time close its shareholder
         books or records in any manner which interferes with the timely
         exercise of this Warrant.

    7.   No Rights as Shareholder until Exercise.  Subject to Section 12 of
         this Warrant and the provisions of any other written agreement
         between the Company and the Investor, the Investor shall not be
         entitled to vote or receive dividends or be deemed the holder of
         Warrant Shares or any other securities of the Company that may at
         any time be issuable on the exercise hereof for any purpose, nor
         shall anything contained herein be construed to confer upon the
         Investor, as such, any of the rights of a stockholder of the Company
         or any right to vote for the election of directors or upon any
         matter submitted to stockholders at any meeting thereof, or to give
         or withhold consent to any corporate action (whether upon any
         recapitalization, issuance of stock, reclassification of stock,
         change of par value, or change of stock to no par value,
         consolidation, merger, conveyance or otherwise) or to receive notice
         of meetings, or to receive dividends or subscription rights or
         otherwise until the Warrant shall have been exercised as provided
         herein.  However, at the time of the exercise of this Warrant
         pursuant to Section 3 hereof, the Warrant Shares so purchased
         hereunder shall be deemed to be issued to such holder as the record
         owner of such shares as of the close of business on the date on
         which this Warrant shall have been exercised.

    8.   Assignment and Transfer of Warrant.  This Warrant may be assigned in
         whole or in part (but not in respect of fewer than 10,000 Warrant
         Shares unless fewer than 10,000 Warrant Shares underlie this
         Warrant) by the surrender of this Warrant and the Assignment Form
         annexed hereto duly executed at the office of the Company (or such
         other office or agency of the Company as it may designate by notice
         in writing to the registered holder hereof at the address of such
         holder appearing on the books of the Company); provided, however,
         that this Warrant may not be resold or otherwise transferred except
         (i) in a transaction registered under the Securities Act of 1933, as
         amended (the "Act"), or (ii) in a transaction pursuant to an
         exemption, if available, from registration under the Act and
         whereby, if requested by the Company, an opinion of counsel
         reasonably satisfactory to the Company is obtained by the holder of
         this Warrant to the effect that the transaction is so exempt.

    9.   Loss, Theft, Destruction or Mutilation of Warrant.  Upon receipt by
         the Company of evidence reasonably satisfactory to it of the loss,
         theft, destruction or mutilation of any Warrant or stock certificate
         representing the Warrant Shares, and in case of loss, theft or
         destruction, of indemnity reasonably satisfactory to it, and upon
         reimbursement to the Company of all reasonable expenses incidental
         thereto.  Upon surrender and cancellation of such Warrant or stock
         certificate, if mutilated, the Company will make and deliver a new
         Warrant or stock certificate of like tenor and dated as of such
         cancellation, in lieu of this Warrant or stock certificate.
<PAGE>
    10.  Saturdays, Sundays, Holidays, etc.  If the last or appointed day for
         the taking of any action or the expiration of any right required or
         granted herein shall be a Saturday, Sunday or a legal holiday, then
         such action may be taken or such right may be exercised on the next
         succeeding day not a legal holiday.

    11.  Effect of Certain Events. If at any time while this Warrant or any
         portion thereof is outstanding and unexpired there shall be (i) a
         sale or conveyance of all or substantially all of the Company's
         assets or (ii) a transaction (by merger or otherwise) in which more
         than 50% of the voting power of the Company is disposed of
         (collectively, a "Sale or Merger Transaction"), in which the
         consideration to be received by the Company or its shareholders
         consists solely of cash, and in case the Company shall at any time
         effect a Sale or Merger Transaction in which the consideration to be
         received by the Company or its shareholders consists in part of
         consideration other than cash, the holder of this Warrant shall have
         the right thereafter to purchase, by exercise of this Warrant and
         payment of the aggregate Exercise Price in effect immediately prior
         to such action, the kind and amount of shares and other securities
         and property which it would have owned or have been entitled to
         receive after the happening of such transaction had this Warrant
         been exercised immediately prior thereto, subject to further
         adjustment as provided in Section 12.  Notwithstanding the above, a
         Sale or Merger Transaction shall not be deemed to occur in the event
         the Company is the acquiring entity in connection with an
         acquisition by the Company.

    12.  Adjustments of Exercise Price and Number of Warrant Shares.

         The number of and kind of securities purchasable upon exercise of
         this Warrant and the Exercise Price shall be subject to adjustment
         from time to time as follows:

    (a)  Subdivisions, Combinations and other Issuances.  If the Company
         shall at any time after the date hereof but prior to the expiration
         of this Warrant subdivide its outstanding securities as to which
         purchase rights under this Warrant exist, by split-up, spin-off, or
         otherwise, or combine its outstanding securities as to which
         purchase rights under this Warrant exist, the number of Warrant
         Shares as to which this Warrant is exercisable as of the date of
         such subdivision, split-up, spin-off or combination shall forthwith
         be proportionately increased in the case of a subdivision, or
         proportionately decreased in the case of a combination. Appropriate
         proportional adjustments (decrease in the case of subdivision,
         increase in the case of combination) shall also be made to the
         Exercise Price payable per share, so that the aggregate Exercise
         Price payable for the total number of Warrant Shares purchasable
         under this Warrant as of such date shall remain the same as it would
         have been before such subdivision or combination.
<PAGE>
    (b)  Stock Dividend. If at any time after the date hereof the Company
         declares a dividend or other distribution on Common Stock payable in
         Common Stock or other securities or rights convertible into Common
         Stock ("Common Stock Equivalents") without payment of any
         consideration by holders of Common Stock for the additional shares
         of Common Stock or the Common Stock Equivalents (including the
         additional shares of Common Stock issuable upon exercise or
         conversion thereof), then the number of shares of Common Stock for
         which this Warrant may be exercised shall be increased as of the
         record date (or the date of such dividend distribution if no record
         date is set) for determining which holders of Common Stock shall be
         entitled to receive such dividends, in proportion to the increase in
         the number of outstanding shares (and shares of Common Stock
         issuable upon conversion of all such securities convertible into
         Common Stock) of Common Stock as a result of such dividend, and the
         Exercise Price shall be proportionately reduced so that the
         aggregate Exercise Price for all the Warrant Shares issuable
         hereunder immediately after the record date (or on the date of such
         distribution, if applicable), for such dividend shall equal the
         aggregate Exercise Price so payable immediately before such record
         date (or on the date of such distribution, if applicable).

    (c)  Other Distributions.  If at any time after the date hereof the
         Company distributes to holders of its Common Stock, other than as
         part of its dissolution, liquidation or the winding up of its
         affairs, any shares of its capital stock, any evidence of
         indebtedness or any of its assets (other than Common Stock or cash
         dividends per share of Common Stock not in excess of 3% per annum),
         then the number of Warrant Shares for which this Warrant is
         exercisable shall be increased to equal: (i) the number of Warrant
         Shares for which this Warrant is exercisable immediately prior to
         such event, (ii) multiplied by a fraction, (A) the numerator of
         which shall be the Fair Market Value (as defined below) per share of
         Common Stock on the record date for the dividend or distribution,
         and (B) the denominator of which shall be the Fair Market Value
         price per share of Common Stock on the record date for the dividend
         or distribution minus the amount allocable to one share of Common
         Stock of the value (as jointly determined in good faith by the Board
         of Directors of the Company and the Warrant holder) of any and all
         such evidences of indebtedness, shares of capital stock, other
         securities or property, so distributed.  For purposes of this
         Warrant, "Fair Market Value" shall equal the 10 Trading Day average
         closing trading price of the Common Stock on the Principal Market
         for the 10 Trading Days preceding the date of determination or, if
         the Common Stock is not listed or admitted to trading on any
         Principal Market, the average of the closing bid and asked prices on
         the over-the-counter market as furnished by any New York Stock
         Exchange member firm reasonably selected from time to time by the
         Company for that purpose and reasonably acceptable to the Holder,
         or, if the Common Stock is not listed or admitted to trading on the
         Principal Market or traded over-the-counter and the average price
         cannot be determined as contemplated above, the Fair Market Value of
         the Common Stock shall be as reasonably determined in good faith by
         the Company's Board of Directors with the concurrence of the Holder.
         The Exercise Price shall be reduced to equal: (i) the Exercise Price
         in effect immediately before the occurrence of any event (ii)
         multiplied by a fraction, (A) the numerator of which is the number
         of Warrant Shares for which this Warrant is exercisable immediately
         before the adjustment, and (B) the denominator of which is the
<PAGE>
         number of Warrant Shares for which this Warrant is exercisable
         immediately after the adjustment.

    (d)  Merger, etc. If at any time after the date hereof there shall be a
         merger or consolidation of the Company with or into or a transfer of
         all or substantially all of the assets of the Company to another
         entity, then the Warrant Holder shall be entitled to receive upon or
         after such transfer, merger or consolidation becoming effective, and
         upon payment of the Exercise Price then in effect, the number of
         shares or other securities or property of the Company or of the
         successor corporation resulting from such merger or consolidation,
         which would have been received by Warrant Holder for the shares of
         stock subject to this Warrant had this Warrant been exercised just
         prior to such transfer, merger or consolidation becoming effective
         or to the applicable record date thereof, as the case may be.  The
         Company will not merge or consolidate with or into any other
         corporation, or sell or otherwise transfer its property, assets and
         business substantially as an entirety to another corporation, unless
         the corporation resulting from such merger or consolidation (if not
         the Company), or such transferee corporation, as the case may be,
         shall expressly assume in writing the due and punctual performance
         and observance of each and every covenant and condition of this
         Warrant to be performed and observed by the Company.

    (e)  Reclassification, etc.  If at any time after the date hereof there
         shall be a reorganization or reclassification of the securities as
         to which purchase rights under this Warrant exist into the same or a
         different number of securities of any other class or classes, then
         the Warrant Holder shall thereafter be entitled to receive upon
         exercise of this Warrant, during the period specified herein and
         upon payment of the Exercise Price then in effect, the number of
         shares or other securities or property resulting from such
         reorganization or reclassification, which would have been received
         by the Warrant Holder for the shares of stock subject to this
         Warrant had this Warrant at such time been exercised.

    13.  Voluntary Adjustment by the Company.  The Company may at its option,
         at any time during the term of this Warrant, reduce but not increase
         the then current Exercise Price to any amount and for any period of
         time deemed appropriate by the Board of Directors of the Company.

    14.  Notice of Adjustment.  Whenever the number of Warrant Shares or
         number or kind of securities or other property purchasable upon the
         exercise of this Warrant or the Exercise Price is adjusted, the
         Company shall promptly mail to the holder of this Warrant a notice
         setting forth the number of Warrant Shares (and other securities or
         property) purchasable upon the exercise of this Warrant and the
         Exercise Price of such Warrant Shares after such adjustment and
         setting forth a brief statement of the facts requiring such
         adjustment.

    15.  Authorized Shares.  The Company covenants that during the period the
         Warrant is outstanding and exercisable, it will reserve from its
         authorized and unissued Common Stock a sufficient number of shares
         to provide for the issuance of the Warrant Shares upon the exercise
         of any purchase rights under this Warrant.  The Company further
         covenants that its issuance of this Warrant shall constitute full
         authority to its officers who are charged with the duty of executing
         stock certificates to execute and issue the necessary certificates
<PAGE>
         for the Warrant Shares upon the exercise of the purchase rights
         under this Warrant.  The Company will take all such reasonable
         action as may be necessary to assure that such Warrant Shares may be
         issued as provided herein without violation of any applicable law or
         regulation, or of any requirements of the American Stock Exchange or
         any domestic securities exchange upon which the Common Stock may be
         listed.

    16.  9.99% Limitation.

              (1)  Notwithstanding anything to the contrary contained herein,
         the number of shares of Common Stock that may be acquired by the
         Investor upon exercise pursuant to the terms hereof shall not exceed
         a number that, when added to the total number of shares of Common
         Stock deemed beneficially owned by such holder (other than by virtue
         of the ownership of securities or rights to acquire securities that
         have limitations on the Investor's right to convert, exercise or
         purchase similar to the limitation set forth herein), together with
         all shares of Common Stock deemed beneficially owned by the holder's
         "affiliates" (as defined Rule 144 of the Act) that would be
         aggregated for purposes of determining whether a group under Section
         13(d) of the Securities Exchange Act of 1934, as amended, exists,
         would exceed 9.99% of the total issued and outstanding shares of the
         Company's Common Stock (the "Restricted Ownership Percentage");
         provided that (w) each Holder shall have the right at any time and
         from time to time to reduce its Restricted Ownership Percentage
         immediately upon notice to the Company and (x) each Holder shall
         have the right at any time and from time to time, to increase its
         Restricted Ownership Percentage immediately in the event of a Major
         Transaction (as such term is defined in the Agreement).

              (2)  Each time (a "Covenant Time") the Investor makes a
         Triggering Acquisition (as defined below) of shares of Common Stock
         (the "Triggering Shares") pursuant to the Transaction Documents (as
         defined in the Agreement), the Investor will be deemed to covenant
         that it will not, during the balance of the day on which such
         Triggering Acquisition occurs, and during the 61-day period
         beginning immediately after that day, acquire additional shares of
         Common Stock pursuant to rights-to-acquire existing at that Covenant
         Time, if the aggregate amount of such additional shares so acquired
         (without reducing that amount by any dispositions) would exceed (x)
         9.99% of the number of shares of Common Stock outstanding at that
         Covenant Time (including the Triggering Shares) minus (y) the number
         of shares of Common Stock actually owned by the Investor at that
         Covenant Time (regardless of how or when acquired, and including the
         Triggering Shares).  "Triggering Acquisition" means (i) the giving
         of a Purchase Notice (as defined in the Agreement), (ii) a Closing
         (as defined in the Agreement), (iii) an exercise of the Warrant by
         the Investor, or (iv) the issuance of Warrant Shares to the Investor
         under the Warrant; provided, however, that with respect to each
         event described in the preceding clauses "i" and "iii", if the
         associated issuance of shares of Common Stock does not occur, such
         event shall cease to be a Triggering Acquisition and the related
         covenant under this paragraph shall terminate.  At each Covenant
         Time, the Investor shall be deemed to waive any right it would
         otherwise have to acquire shares of Common Stock to the extent that
         such acquisition would violate any covenant given by the Investor
         under this paragraph.  Notwithstanding anything to the contrary in
         the Transaction Documents, in the event of a conflict between any
<PAGE>
         covenant given under this paragraph and any obligation of the
         Investor to buy shares pursuant to the Transaction Documents, the
         former shall supersede the latter, and the latter shall be reduced
         accordingly.  The Investor shall endeavor in good faith to avoid
         such a conflict.  For the avoidance of doubt:

                   (i)  The covenant to be given pursuant to this paragraph
         will be given at every Covenant Time and shall be calculated based
         on the circumstances then in effect.  The making of a covenant at
         one Covenant Time shall not terminate or modify any prior covenants.

                   (ii) The Investor may therefore from time to time be
         subject to multiple such covenants, each one having been made at a
         different Covenant Time, and some possibly being more restrictive
         than others.  The Investor must comply with all such covenants then
         in effect.

    17.  Compliance with Securities Laws.  (a) The holder hereof acknowledges
         that the Warrant Shares acquired upon the exercise of this Warrant,
         if not registered (or if no exemption from registration exists),
         will have restrictions upon resale imposed by state and federal
         securities laws.  Each certificate representing the Warrant Shares
         issued to the Holder upon exercise (if not registered or if no
         exemption from registration exists) will bear the following legend:

         THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
         COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
         REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
         "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED,
         TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
         EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
         PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
         SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
         IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, BASED ON AN
         OPINION LETTER OF COUNSEL SATISFACTORY TO THE COMPANY OR A NO-ACTION
         LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

    (b)  Without limiting the Investor's right to transfer, assign or
         otherwise convey the Warrant or Warrant Shares in compliance with
         all applicable securities laws, the Investor of this Warrant, by
         acceptance hereof, acknowledges that this Warrant and the Warrant
         Shares to be issued upon exercise hereof are being acquired solely
         for the Investor's own account and not as a nominee for any other
         party, and that the Investor will not offer, sell or otherwise
         dispose of this Warrant or any Warrant Shares to be issued upon
         exercise hereof except under circumstances that will not result in a
         violation of applicable federal and state securities laws.  Upon
         exercise of this Warrant, the Investor shall, if requested by the
         Company, confirm in writing, in a form satisfactory to the Company,
         that the Warrant Shares of Common Stock so purchased are being
         acquired solely for the Investor's own account and not as a nominee
         for any other party, for investment, and not with a view toward
         distribution or resale.

    (c)  Neither this Warrant nor any Share of Common Stock issued upon
         exercise of this Warrant may be offered for sale or sold, or
         otherwise transferred or sold in any transaction which would
<PAGE>
         constitute a sale thereof within the meaning of the Act, unless (i)
         such security has been registered for sale under the Act and
         registered or qualified under applicable state securities laws
         relating to the offer an sale of securities, or (ii) exemptions from
         the registration requirements of the Act and the registration or
         qualification requirements of all such state securities laws are
         available and the Company shall have received an opinion of counsel
         that the proposed sale or other disposition of such securities may
         be effected without registration under the Act, such counsel and
         such opinion to be satisfactory to the Company.

    (d)  Investor recognizes that investing in the Warrant and the Warrant
         Shares involves a high degree of risk, and Investor is in a
         financial position to hold the Warrant and the Warrant Shares
         indefinitely and is able to bear the economic risk and withstand a
         complete loss of its investment in the Warrant and the Warrant
         Shares.  The Investor is a sophisticated investor and is capable of
         evaluating the merits and risks of investing in the Company.  The
         Investor has had an opportunity to discuss the Company's business,
         management and financial affairs with the Company's management, has
         been given full and complete access to information concerning the
         Company, and has utilized such access to its satisfaction for the
         purpose of obtaining information or verifying information and have
         had the opportunity to inspect the Company's operation.  Investor
         has had the opportunity to ask questions of, and receive answers
         from, the management of the Company (and any person acting on its
         behalf) concerning the Warrant and the Warrant Shares and the
         agreements and transactions contemplated hereby, and to obtain any
         additional information as Investor may have requested in making its
         investment decision.  The initial Investor in this Warrant is an
         "accredited investor", as defined by Regulation D promulgated under
         the Act.

    18.  Miscellaneous.

    (A)  Issue Date; Choice Of Law; Venue; Jurisdiction.  THE PROVISIONS OF
         THIS WARRANT SHALL BE CONSTRUED AND SHALL BE GIVEN EFFECT IN ALL
         RESPECTS AS IF IT HAD BEEN ISSUED AND DELIVERED BY THE COMPANY ON
         THE DATE HEREOF.  THIS WARRANT SHALL BE BINDING UPON ANY SUCCESSORS
         OR ASSIGNS OF THE COMPANY.  THIS WARRANT WILL BE CONSTRUED AND
         ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
         NEW YORK, EXCEPT FOR MATTERS ARISING UNDER THE ACT, WITHOUT
         REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW.  EACH OF THE PARTIES
         CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE U.S. DISTRICT COURT
         SITTING IN THE STATE OF CITY OF NEW YORK IN THE STATE OF NEW YORK IN
         CONNECTION WITH ANY DISPUTE ARISING UNDER THIS WARRANT AND HEREBY
         WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION,
         INCLUDING ANY OBJECTION BASED ON FORUM NON CONVENIENS, TO THE
         BRINGING OF ANY SUCH PROCEEDING IN SUCH JURISDICTION.  EACH PARTY
         HEREBY AGREES THAT IF THE OTHER PARTY TO THIS WARRANT OBTAINS A
         JUDGMENT AGAINST IT IN SUCH A PROCEEDING, THE PARTY WHICH OBTAINED
         SUCH JUDGMENT MAY ENFORCE SAME BY SUMMARY JUDGMENT IN THE COURTS OF
         ANY COUNTRY HAVING JURISDICTION OVER THE PARTY AGAINST WHOM SUCH
         JUDGMENT WAS OBTAINED, AND EACH PARTY HEREBY WAIVES ANY DEFENSES
         AVAILABLE TO IT UNDER LOCAL LAW AND AGREES TO THE ENFORCEMENT OF
         SUCH A JUDGMENT.  EACH PARTY TO THIS WARRANT IRREVOCABLY CONSENTS TO
         THE SERVICE OF PROCESS IN ANY SUCH PROCEEDING BY THE MAILING OF
         COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO
         SUCH PARTY AT ITS ADDRESS IN ACCORDANCE WITH SECTION 18(C).  NOTHING
<PAGE>
         HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE PROCESS IN ANY
         OTHER MANNER PERMITTED BY LAW.  EACH PARTY WAIVES ITS RIGHT TO A
         TRIAL BY JURY.

    (b)  Modification and Waiver.  This Warrant and any provisions hereof may
         be changed, waived, discharged or terminated only by an instrument
         in writing signed by the party against which enforcement of the same
         is sought.  Any amendment effected in accordance with this paragraph
         shall be binding upon the Investor, each future holder of this
         Warrant and the Company.  No waivers of, or exceptions to, any term,
         condition or provision of this Warrant, in any one or more
         instances, shall be deemed to be, or construed as, a further or
         continuing waiver of any such term, condition or provision.

    (c)  Notices.  Any notice, request or other document required or
         permitted to be given or delivered to the Investor or future holders
         hereof or the Company shall be personally delivered or shall be sent
         by certified or registered mail, postage prepaid, to the Investor or
         each such holder at its address as shown on the books of the Company
         or to the Company at the address set forth in the Agreement.  All
         notices under this Warrant shall be deemed to have been given when
         received.

         A party may from time to time change the address to which notices to
         it are to be delivered or mailed hereunder by notice in accordance
         with the provisions of this Section 18(c).

    (d)  Severability.  Whenever possible, each provision of this Warrant
         shall be interpreted in such manner as to be effective and valid
         under applicable law, but if any provision of this Warrant is held
         to be invalid, illegal or unenforceable in any respect under any
         applicable law or rule in any jurisdiction, such invalidity,
         illegality or unenforceability shall not affect the validity,
         legality or enforceability of any other provision of this Warrant in
         such jurisdiction or affect the validity, legality or enforceability
         of any provision in any other jurisdiction, but this Warrant shall
         be reformed, construed and enforced in such jurisdiction as if such
         invalid, illegal or unenforceable provision had never been contained
         herein.

    (e)  No Impairment.  The Company will not, by amendment of its
         Certificate of Incorporation or through any reorganization, transfer
         of assets, consolidation, merger, dissolution, issue or sale of
         securities or any other voluntary action, avoid or seek to avoid the
         observance or performance of any of the terms of this Warrant, but
         will at all times in good faith assist in the carrying out of all
         such terms and in the taking of all such action as may be necessary
         or appropriate in order to protect the rights of the Warrant Holder
         against impairment.  Without limiting the generality of the
         foregoing, the Company (a) will not increase the par value of any
         Warrant Shares above the amount payable therefor on such exercise,
         and (b) will take all such action as may be reasonably necessary or
         appropriate in order that the Company may validly and legally issue
         fully paid and nonassessable Warrant Shares on the exercise of this
         Warrant.

<PAGE>
    IN WITNESS WHEREOF, the Company has caused this Warrant to be
    executed by its officers thereunto duly authorized.

    Dated: March 3, 2000

                                  TELULAR CORPORATION

                                  By: ______________________________
                                    Name:
                                    Title:
    Agreed and Accepted
    this 3rd day of March, 2000

    HALIFAX FUND, L.P.

    By:  THE PALLADIN GROUP, L.P.
             Attorney-in-Fact

    By:  PALLADIN CAPITAL MANAGEMENT, LLC
             General Partner

         By:___________________
              Name:_________________
              Title:________________

<PAGE>
    NOTICE OF EXERCISE

    To:  TELULAR CORPORATION

    (1)  The undersigned hereby elects:

         (A)  to purchase ________ shares of Common Stock of TELULAR
    CORPORATION pursuant to the terms of the attached Warrant, and tenders
    herewith payment of the Exercise Price in full, together with all
    applicable transfer taxes, if any.

         (B)  in a "cashless" or "net-issue exercise" for, and to purchase
    thereunder, ______ shares of Common Stock, and herewith makes payment
    therefor with _______ Surrendered Shares.

    (2)  Please issue a certificate or certificates representing said shares
    of Common Stock in the name of the undersigned or in such other name as
    is specified below:

                   _______________________________
                   (Name)

                   _______________________________
                   (Address)
                   _______________________________

    (3)  Please issue a new Warrant for the unexercised portion of the
    attached Warrant in the name of the undersigned or in such other name as
    is specified below:

                   Other Name: ____________________

                                    ___________________________________
                                    (Name)

    ____________________            ___________________________________
    (Date)                          (Signature)
                                    ___________________________________
                                    (Address)

<PAGE>
                             ASSIGNMENT FORM

                (To assign the foregoing warrant, execute
               this form and supply required information.
             Do not use this form to exercise the warrant.)

              FOR VALUE RECEIVED, the foregoing Warrant and all rights
    evidenced thereby are hereby assigned to

    _______________________________________________ whose address is

    _______________________________________________________________.

    _______________________________________________________________

                                       Dated:  ______________,

                   Holder's Signature: _____________________________

                   Holder's Address:   _____________________________

                                  _____________________________

    Signature Guaranteed:  ___________________________________________

    NOTE:  The signature to this Assignment Form must correspond with the
    name as it appears on the face of the Warrant, without alteration or
    enlargement or any change whatsoever, and must be guaranteed by a bank or
    trust company.  Officers of corporations and those acting in an fiduciary
    or other representative capacity should file proper evidence of authority
    to assign the foregoing Warrant.

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