Document:

Exhibit 4.2

                       $125,000 NEGOTIABLE PROMISSORY NOTE

                                                                   April 1, 2004

          For value received, on March 31, 2006, General DataComm Industries,
Inc, having an office at 6 Rubber Avenue, Naugatuck CT 06770 ("Payor"), promises
to pay to the order of John L. Segall, residing at 11 Blackstone Drive, East
Norwalk, CT 06855 ("Payee"), with interest at the rate of 10% per annum on the
unpaid balance thereof from April 1, 2004, the principal sum of $125,000 in
lawful money of the United States of America. This Note may be prepaid at any
time without penalty or premium. Interest which accrues during each calendar
month shall be paid on the first day of the following calendar month during the
term of this Note except the first interest payment shall be made August 1,
2004. This Note evidences a loan made to Payor by Payee in the sum of $125,000
for the purpose of Payor paying and replacing indebtedness of a similar amount
owed to Ableco Finance, LLC, as Agent, and the Lenders, under Loan and Security
Agreement dated as of August 20, 2002.

           1. Payment of this Note is unconditional and shall be made without
defense, counterclaim or offset, any defense to be asserted in a separate suit.
If payment is not made at maturity or upon the occurrence of a Default, then
interest shall accrue from such date until paid in full at the rate of 12% per
annum or the maximum permitted by law, whichever is less. This Note is secured
by a security agreement dated December 30, 2003, as amended.

            2.(a) At the option of the Payee or holder the principal amount of
this Note may be converted in whole or in part into Common Stock of the Payor at
the conversion price of $.5625 per share by written notice designating the
amount thereof being converted in minimum multiples of $10,000 principal amount
or integral multiples thereof. The Payee or holder acknowledges any shares of
Common Stock issued on conversion will not be registered under the Securities
Act of 1933, as amended and must be held for investment without a view to
distribution and the certificates for such shares shall bear a restrictive
legend therefor. The Payor shall issue a replacement note for this Note in the
event of any conversion for the remaining balance thereof.

              (b) (a) If additional shares of Common Stock are issued by the
Payor pursuant to a stock split or stock dividend in excess of 5% in any one
fiscal year of the Payor, the number of shares of Common Stock then issuable on
conversion shall be increased proportionately with no increase in the principal
amount of this Note being converted. In the event that the shares of common
stock of the Payor are reduced at any time by a combination of shares, the
number of shares of common stock then issuable on conversion herein shall be
reduced proportionately with no reduction in the principal amount of this Note
<PAGE>

being converted. If the Payor shall be reorganized, consolidated or merged with
another corporation, or if all or substantially all of the assets of the Payor
shall be sold or exchanged, the Payee shall, at the time of issuance of the
stock under such a corporate event, be entitled to receive upon the conversion
of this Note, the same number and kind of shares of stock or the same amount of
property, cash or securities as he would have been entitled to receive upon the
happening of any such corporate event as if he had been, immediately prior to
such event, the holder of the number of shares receivable on conversion of this
Note.

           3. The term "Default" as used herein shall mean the failure of Payor
to pay the principal or interest on this Note when due or the failure of Payor
to perform any other obligation (including the obligations under Paragraphs 2(a)
or (b) when required, or the security agreement securing this Note) or if an
Event of Default exists under the Payor's Loan and Security Agreement with
Ableco Finance LLC and such indebtedness is accelerated.

           4. Payor agrees to pay all costs and expenses of collection,
including reasonable attorney's fees, in the event of acceleration of this Note
by Payee or holder following Default.

           5. Presentation for payment, notice of dishonor, protest and notice
of protest are hereby waived.

           6. This Note shall be governed by the laws of the State of
Connecticut. The Payor of this Note hereby submits to the exclusive jurisdiction
of the courts of general jurisdiction of the State of Connecticut , and hereby
waives, and agrees not to assert, as a defense in any action, suit or proceeding
for the interpretation or enforcement of this Note, that it is not subject
thereto or that such action, suit or proceeding may not be brought or it is not
maintainable in such courts, or that this Note may not be enforced in or by such
courts, or that the suit, action or proceeding is brought in an inconvenient
forum, or that the venue of the suit, action or proceeding is improper. Service
of process with respect thereto may be made upon Payor by mailing a copy thereof
by registered or certified mail, postage prepaid, to such party at its address
as provided above.

                                        GENERAL DATACOMM INDUSTRIES, INC.

                                        By: /s/ WILLIAM G. HENRY
                                            ------------------------------------
                                            William G. Henry
                                            Title: Vice President, Finance
                                                   and Administration

                                       2Exhibit 10.1

                                 FIRST AMENDMENT
                     TO ADDITIONAL SENIOR SECURITY AGREEMENT

                  FIRST AMENDMENT, dated as of March 1, 2004 (the "Amendment"),
to the Additional Senior Security Agreement referred to below, by and among (i)
GENERAL DATACOMM INDUSTRIES, INC., a Delaware corporation, GENERAL DATACOMM,
INC., a Delaware corporation ("GDC"), DATACOMM LEASING CORPORATION, a Delaware
corporation, GDC HOLDING COMPANY, LLC, a Delaware limited liability company, GDC
NAUGATUCK, INC., a Delaware corporation, GDC FEDERAL SYSTEMS, INC., a Delaware
corporation, GDC REALTY, INC., a Texas corporation (each, a "Borrower" and
collectively, the "Debtors") and Howard S. Modlin and John L. Segall (together
with their successors and assigns the "Secured Party")

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

                  WHEREAS, GDC and the other Debtors have requested that the
Secured Party loan GDC an additional $250,000 which shall be used to pay and
replace $250,000 of the obligations owed to the Lenders under the Senior Loan
Agreement, subject to (i) the execution and delivery of this Amendment by the
Debtors, and (ii) the other terms and conditions set forth in this Amendment;

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

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

         2.       Replacement Loans. In consideration of the aggregate principal
amount of $250,000 to be loaned this date by the Secured Party to GDC reflected
by two separate notes of $125,000 each, GDC covenants and agrees such funds
shall be used to pay and replace Indebtedness of a like amount owed to the
Lenders under the Senior Loan Agreement on this date and shall be Replacement
Debt as defined in the Subordinated Security Agreement dated September 15, 2003
between the Debtors and HSBC Bank USA as Trustee and as provided in the
Indenture dated September 15, 2003 between General DataComm Industries, Inc. and
HSBC Bank USA.

         3.       Indebtedness Secured. Paragraph 3 of the Security Agreement is
amended to read in its entirety as follows: " Indebtedness Secured. The Security
Interest granted by Debtors secures payment of any and all indebtedness of
Parent and its subsidiaries incurred under the promissory notes payable to
Secured Party dated December 30, 2003 in the original aggregate principal amount
of $600,000 and the promissory notes payable to Secured Party dated March 1,
2003 in the original aggregate principal amount of $250,000 and which notes

<PAGE>

total $850,000 (the "Notes") whether or not any such indebtedness is now
existing or hereafter incurred, of every kind and character, direct or indirect,
and whether any such indebtedness is from time to time reduced and thereafter
increased, or entirely extinguished and thereafter reincurred, including,
without limitation, any sums advanced by Secured Party for taxes, assessments,
insurance and other charges and expenses as hereinafter provided, and all
amounts owed under any modifications, renewals or extensions of any of the
foregoing obligations (collectively, the "Indebtedness")."

         4.       Miscellaneous.

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

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

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

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

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

                                    Borrowers:
                                    ----------

                                    GENERAL DATACOMM INDUSTRIES, INC.,
                                    a Delaware corporation

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

                                    Title:
                                          --------------------------------------

                                    GENERAL DATACOMM, INC.,
                                    a Delaware corporation

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

                                    Title:
                                          --------------------------------------

<PAGE>

                                    DATACOMM LEASING CORPORATION,
                                    a Delaware corporation

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

                                    Title:
                                          --------------------------------------

                                    GDC HOLDING COMPANY, LLC,
                                    a Delaware limited liability company

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

                                    Title:
                                          --------------------------------------

                                    GDC FEDERAL SYSTEMS, INC.,
                                    a Delaware corporation

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

                                    Title:
                                          --------------------------------------

                                    GDC NAUGATUCK, INC.,
                                    a Delaware corporation

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

                                    Title:
                                          --------------------------------------

                                    GDC REALTY, INC.,
                                    a Texas corporation

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

                                    Title:
                                          --------------------------------------

                                    Secured Party
                                    -------------

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

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

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