Document:

WARRANT AGREEMENT
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     THIS  WARRANT  AGREEMENT (this "Agreement"), dated as of December 31, 1999,
                                     ---------
by  and  among  POINTE  COMMUNICATIONS  CORPORATION,  a  Nevada corporation (the
"Company"),  TSG  CAPITAL FUND III, L.P., a Delaware limited partnership and its
--------
Affiliates  ("TSG"),  Opportunity  Capital Partners II, L.P., a Delaware limited
              ---
partnership  and its Affiliates ("OCP II") and Opportunity Capital Partners III,
                                  ------
L.P.,  a  Delaware  limited  partnership  and  its  Affiliates  ("OCP  III")
                                                                  --------
(collectively  TSG,  OCP  II  and  OCP III shall be referred to as "Investors").
                                                                    ---------

                                R E C I T A L S:
                                ----------------

     WHEREAS,  concurrently  with  the execution and delivery of this Agreement,
the  Company is issuing shares of Class B Convertible Senior Preferred Stock and
Warrants  of  the  Company in the amount and for the aggregate purchase price as
set  forth  on  Schedule  1  attached  hereto  (being  referred to herein as the
                -----------
"Warrants"),  such  Warrants initially entitling the holders thereof to purchase
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9,000,000  shares  of common stock of the  Company, par value $0.00001 per share
(the  "Common  Stock"),  subject  to  adjustment  as hereinafter provided and as
       -------------
provided  in  the  Securities Purchase Agreement (as defined herein) (the Common
Stock  and,  pursuant  to  Article  7  hereof,  such  other securities as may be
issuable  upon exercise of the Warrants being referred to herein as the "Warrant
                                                                         -------
Shares");  and
------

     WHEREAS,  the  Company  wishes  to  define  the terms and provisions of the
Warrants and the respective rights and obligations thereunder of the Company and
the  holders  of  the  Warrants  (the  "Warrantholders");
                                        --------------

     NOW,  THEREFORE,  in consideration of the foregoing recitals and the mutual
agreements  herein set forth, and for other good and valuable consideration, the
receipt  and  sufficiency  of  which are hereby acknowledged, the parties hereto
agree  as  follows:

                                    ARTICLE 1

                                   DEFINITIONS
     SECTION  1.1     Certain  Definitions.  As  used  in  this  Agreement,  the
                      --------------------
following  terms  have  the  meanings  specified  below:

     "Amended  Articles"  means  the  Amended  Articles  of Incorporation of the
      -----------------
Company  as amended to include the Certificate of Designations setting forth the
rights,  preferences and privileges of the Class B Preferred Stock (as defined).

     "Board  of  Directors"  means  the  Board  of  Directors  of  the  Company.
      --------------------

                                     Page 1
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     "Business  Day"  means any day other than Saturday, Sunday or any other day
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on which banking institutions in the City of New York, New York are permitted or
required  to  close.

     "Class  B  Preferred  Stock" means the Class B Convertible Senior Preferred
      --------------------------
Stock,  par  value  $0.01  per  share,  of  the Company issued to the Investors.

     "Exchange  Act"  means the Securities Exchange Act of 1934, as amended, and
      -------------
the  rules  and  regulations  promulgated  thereunder.

     "GAAP"  means  United  States  generally accepted accounting principles set
      ----
forth  in  opinions and pronouncements of the Accounting Principles Board of the
American  Institute  of  Certified  Public  Accountants  and  statements  and
pronouncements  of  the  Financial  Accounting  Standards Board or in such other
statements  by  such other entity as may be approved by a significant segment of
the  accounting  profession,  in  each  case  as  the same are applicable to the
circumstances  as  of  the  date  of  the  determination.

     "Pensat  Transaction"  shall  mean  the  transactions  contemplated by that
      -------------------
certain  letter  of  intent  and  term  sheet  between  the  Company  and Pensat
International  Communications,  Inc. ("Pensat"), dated July 26, 1999, including,
but  not  limited  to,  the  purchase  by Pensat or affiliates thereof, or other
parties,  of  Class C Preferred Sock for an aggregate purchase price of at least
$20,000,000.

     "Person"  means  an  individual,  partnership,  corporation  (including  a
      ------
business  trust),  limited  liability  company,  joint  stock  company,  trust,
unincorporated  association,  joint  venture  or  other  entity.

     "SEC"  means  the  Securities  and  Exchange  Commission  or  any successor
      ---
thereto.

     "Securities  Act"  means  the  Securities  Act of 1933, as amended, and the
      ---------------
rules  and  regulations  promulgated  thereunder.

     "Securities  Purchase  Agreement"  means  that  certain Securities Purchase
      -------------------------------
Agreement  by  and  among the Company and the Investors dated as of September 1,
1999.

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                                    ARTICLE 2

              ISSUANCE, FORM AND EXECUTION OF WARRANT CERTIFICATES

     SECTION  2.1     Issuance  of  Warrants.  The  Warrants shall be originally
                      ----------------------
issued by the Company in connection with the issuance of Class B Preferred Stock
pursuant  to the Securities Purchase Agreement.  The Warrants shall be evidenced
by  Warrant Certificates (as defined herein), and each Warrant Certificate shall
represent  the right, subject to the provisions contained herein and therein, to
purchase  from  the  Company  (and  the  Company  shall  issue  and  sell to the
registered holder of such Warrants) the number of shares of Common Stock (as may
be  adjusted  pursuant  to Article 7 hereof) issuable to such Warrantholder upon
exercise  of  such  Warrants,  at  the  price  specified  herein  and  therein.

     SECTION  2.2     Form of Warrant Certificates.  The certificates evidencing
                      ----------------------------
the  Warrants  (the "Warrant Certificates") shall be in registered form only and
shall be substantially in the form set forth in Exhibit A attached hereto, shall
                                                ---------
be  dated  the  date  on  which signed by the Company and may have such letters,
numbers  or  other marks of identification or designation printed, lithographed,
engraved or otherwise affixed thereon as the Company may deem appropriate and as
are  not  inconsistent  with  the provisions of this Agreement or the Securities
Purchase  Agreement,  or  as  may be required to comply with any law or with any
rule  or  regulation  made  pursuant  thereto.

     SECTION  2.3      Execution  of Warrant Certificates.  Warrant Certificates
                       ----------------------------------
shall  be executed on behalf of the Company by the president, any vice president
or  the  treasurer  of  the Company and signed by the secretary or any assistant
secretary of the Company and have affixed thereon the seal of the Company.  Each
such  signature  and  seal  may  be  manual  or  facsimile.

     In case any officer of the Company who shall have signed any of the Warrant
Certificates shall cease to be such officer before countersignature and delivery
by  the  Company, such Warrant Certificates, nevertheless, may be countersigned,
issued  and  delivered  with the same force and effect as though such person had
not  ceased  to  be  such  officer; and any Warrant Certificate may be signed on
behalf  of the Company by any person who, at the actual date of the execution of
such  Warrant Certificate, shall be a proper officer of the Company to sign such
Warrant  Certificate,  although  at  the date of the execution of this Agreement
such  person  was  not such an officer of the Company.  Upon countersignature on
behalf  of  the Company and delivery, the Warrant Certificate shall be valid and
binding upon the Company, and the Warrantholder thereof shall be entitled to all
of  the  benefits  of  this  Agreement.

                                    ARTICLE 3

                                  REGISTRATION

     SECTION  3.1     Registration.  The  Company  shall number and register the
                      ------------
Warrant  Certificates  in a register (the "Warrant Register") maintained at 1325
Northmeadow  Parkway,  Suite  110, Roswell, Georgia 30076 (the "Office") as they
are  issued  by the Company (or such other location as the Company may establish
after  giving  notice  thereof  to  the Warrantholders).  The Company shall keep
copies  of  this Agreement available for inspection by the Warrantholders during
normal  business  hours  at  the  Office.

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                                    ARTICLE 4

            TRANSFER, EXCHANGE OR REPLACEMENT OF WARRANT CERTIFICATES

     SECTION  4.1     Registration of Transfers.  The Company shall from time to
                      -------------------------
time register the transfer of any outstanding Warrant Certificate on the Warrant
Register  maintained  at  the  Office,  upon  surrender thereof accompanied by a
written instrument or instruments of transfer in form reasonably satisfactory to
the  Company,  duly  endorsed  by  the  registered  holder  thereof  or  by such
Warrantholder's  appointed  legal  representative  or  attorney-in-fact,  or
accompanied  by  proper  evidence  of  succession,  assignment  or  authority to
transfer.  In  all  cases  of  transfer  by  an  attorney, the original power of
attorney,  duly  approved, or an official copy thereof, duly certified, shall be
deposited  and  remain with the Company.  Upon any such registration or transfer
in  such  name  or names as may be directed in writing by the Warrantholder, the
Company  shall  execute  and  deliver  (or  cause to be delivered) a new Warrant
Certificate(s) without charge to such Warrantholder, or to the Person or Persons
entitled  to  receive the same, and the surrendered Warrant Certificate shall be
canceled  by  the  Company.

     SECTION  4.2     Exchanges  of  Warrant  Certificates.  Each  Warrant
                      ------------------------------------
Certificate  may  be exchanged at the option of the Warrantholder without charge
to  such  Warrantholder  when  surrendered to the Company at the Office properly
endorsed  in  the  manner  described  in  Section 4.1 hereof for another Warrant
Certificate(s)  of like tenor and representing in the aggregate a like number of
shares  of  Common  Stock,  as  may  be  adjusted  pursuant to Article 7 hereof.
Thereupon,  the  Company  shall  execute  and  deliver to the Person(s) entitled
thereto  a  new  Warrant  Certificate(s)  as so requested.  Warrant Certificates
surrendered  for  exchange  shall  be  canceled  by  the  Company.

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     SECTION  4.3     Mutilated  or  Missing Warrant Certificates.  In the event
                      -------------------------------------------
that  any Warrant Certificate shall be mutilated, lost, stolen or destroyed, the
Company  shall  execute  and  deliver  in exchange and substitution for and upon
cancellation  of  the  mutilated  Warrant  Certificate,  or  in  lieu  of  and
substitution  for  the  Warrant  Certificate  lost,  stolen  or destroyed, a new
Warrant Certificate of like tenor and representing Warrants for a like amount of
Warrant  Shares,  but  only,  in  case  of  a  lost, stolen or destroyed Warrant
Certificate,  upon receipt of evidence satisfactory to the Company of such loss,
theft  or destruction and, upon the Company's request, evidence of indemnity and
bond satisfactory to the Company and the absence of actual notice to the Company
that  such  Warrant  Certificate  has  been acquired by a bona fide purchaser or
holder  in  due  course.  Every  substitute  Warrant  Certificate  executed  and
delivered  pursuant to this Section 4.3 in lieu of any lost, stolen or destroyed
warrant Certificate shall constitute an additional contractual obligation of the
Company,  whether or not the lost, stolen or destroyed Warrant Certificate shall
be  at  any time enforceable by anyone, and shall be entitled to the benefits of
(but  shall  be  subject  to  all  the  limitations of rights set forth in) this
Agreement  equally  and  proportionately  with  any  and  all  other  Warrant
Certificates  duly  executed  and  delivered  hereunder.  The provisions of this
Section  4.3  are  exclusive with respect to the replacement of mutilated, lost,
stolen  or  destroyed  Warrant  Certificates.

                                    ARTICLE 5

              EXERCISE OF WARRANTS; EXERCISE PRICE; EXERCISE PERIOD

     SECTION  5.1     Exercise  of  Warrants.  Subject to the provisions of this
                      ----------------------
Agreement,  each Warrantholder shall have the right to purchase from the Company
the  number  of shares of Common Stock that the Warrantholder may at the time be
entitled  to  purchase  on  exercise of the Warrants and payment of the Exercise
Price  (as  defined  below)  for  such  Warrant  Shares.

     SECTION  5.2     Mechanics  of  Exercise.
                      -----------------------

     (a)     Subject  to  the  provisions  of  this  Agreement,  Warrants may be
exercised  by the Warrantholder in whole or in part upon surrender at the Office
to  the  Company of the Warrant Certificate(s) evidencing the Warrants, together
with  the form of election to purchase (the "Election to Purchase"), in the form
set  forth  as Exhibit B hereto or in the form set forth as Exhibit C hereto (in
               ---------                                    ------- -
the  case of a Warrant Exchange (as defined)), duly completed and signed by such
warrantholder  or  by  such  Warrantholder's  appointed  legal representative or
attorney-in--fact  and  upon  payment  in  full  of  the Exercise Price for each
Warrant  exercised  (except  in the case of a Warrant Exchange).  Payment of the
aggregate  Exercise  Price  shall  be  made  by certified or official bank check
payable  to  the  order  of  the  Company.

     (b)     Upon  due  exercise  of  the  Warrants and surrender of the Warrant
Certificate,  duly  completed  and signed, and payment of' the Exercise Price as
aforesaid,  the Company shall cause to be issued to or upon the written order of
the  Warrantholder  and in such name or names as the Warrantholder may designate
in  the  Election  to  Purchase,  the  Warrant  Shares so purchased.  In lieu of
delivering  physical  certificates representing the Warrant Shares, provided the
Company's  transfer  agent  is participating in the Depositary Trust Issuer Fast
Automated  Securities  Transfer  ("FAST")  program,  upon  request  of  the
Warrantholder,  the  Company  shall  use  its best efforts to cause its transfer
agent  to  electronically  transmit the Warrant Shares issuable upon exercise of
the Warrants to the holder by crediting the account of the Warrantholder's prime
broker  with  Depositary  Trust  Company  through  its  Deposit Withdrawal Agent
Commission  system  (an "Electronic Transfer").  If all of the items referred to
in  the first sentence of the preceding paragraph are received by the Company at
or  prior  to  1:00  p.m.,  Nevada  time, on a Business Day, the exercise of the
Warrants  to which such items relate will be effective on such Business Day.  If
all  of such items are received after 1:00 p.m., Nevada time, on a Business Day,
the exercise of the Warrants to which such items relate will be effective on the
next  Business  Day.

     (c)     The  number  and  kind  of Warrant Shares for which Warrants may be
exercised  shall  be  subject  to  adjustment  from time to time as set forth in
Article  7  hereof.

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     (d)     The  Warrants  shall  be  exercisable  as  provided  herein  at the
election of the Warrantholder in whole or in part.  In the event that the holder
of  a Warrant Certificate shall exercise Warrants with respect to fewer than all
the  Warrant  Shares  evidenced thereby, a new Warrant Certificate(s) evidencing
the  remaining unexercised Warrant Shares shall be issued to such Warrantholder,
and  the  Company  is  hereby  irrevocably authorized to execute and deliver the
required  new  Warrant  Certificate(s)  pursuant  to provisions of Article 2 and
Article  3  of  this  Agreement.

     (e)     All  Warrant  Certificates  surrendered  upon  exercise of Warrants
shall  be  canceled  and  disposed  of  by  the  Company.

     SECTION  5.3     Exercise  Price.
                      ---------------

     (a)     The  price  at  which  each of the Warrants shall be exercisable in
exchange  for Warrant Shares shall be $1.89 per Warrant Share (as such price may
be  adjusted  pursuant  to  Article  7  hereof) (being referred to herein as the
"Exercise  Price").

     (b)     Notwithstanding  Section  5.3(a),  if  the  Pensat  Transaction  is
consumated  and  the Conversion Price of the Class B Preferred Stock is adjusted
as  a  consequence of the Pensat Transaction in accordance with the terms of the
second  paragraph  of  Section  4 (d) (iv) of the Certificate of Designations of
Pointe  Communications  Corporation,  the  Exercise  Price of the Warrants shall
automatically be adjusted to be equal to one hundred eight percent (108%) of the
adjusted  Conversion  Price of the Class B Preferred Stock as of the date of the
adjustment  to  such  Conversion  Price.

     SECTION  5.4     Exercise  Period. The right to exercise the Warrants shall
                      ----------------
terminate  on the date which is the fifth anniversary of the date of issuance of
the  Warrants (the "Expiration Date").  A Warrantholder may exercise any Warrant
from  the date of issuance up to and including the Expiration Date.  The Company
shall  record  the  Expiration  Date  of  each  Warrant in the Warrant Register.

     SECTION  5.5     Cashless  Exercise.
                      ------------------

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     (a)     At  any  time  prior  to  the  Expiration Date of any Warrants, the
Warrantholder may, at its option, exchange such Warrants, in whole or in part (a
"Warrant  Exchange"),  into  the number of fully paid and non-assessable Warrant
Shares  determined  in  accordance  with  this  Section 5.5, by surrendering the
Warrant  Certificate  relating  to such Warrants at the Office, accompanied by a
notice stating such Warrantholder's intent to effect such cashless exchange, the
number of Warrant Shares to be issued upon such Warrant Exchange and the date on
which  the Warrantholder requests that such cashless Warrant Exchange occur (the
"Notice  of  Exchange").  The  cashless Warrant Exchange shall take place on the
date  specified  in the Notice of Exchange, or, if later, the date the Notice of
Exchange is received by the Company (the "Exchange Date").  Certificates for the
Warrant  Shares issuable upon such cashless Warrant Exchange and, if applicable,
a  new  Warrant  Certificate of like tenor evidencing the balance of the Warrant
Shares  remaining  subject  to the Warrantholder's Warrant Certificate, shall be
issued  as  of the Exchange Date and delivered to the Warrantholder within three
Business  Days  following  the  Exchange  Date,  or  by Electronic Transfer.  In
connection  with  any  cashless  Warrant  Exchange,  the Warrantholder's Warrant
Certificate shall represent the right to subscribe for and acquire the number of
Warrant  Shares (rounded to the next highest integer) equal to (A) the number of
Warrant  Shares  specified  by  the Warrantholder in its Notice of Exchange (the
"Total  Share  Number")  less  (B)  the  number  of  Warrant Shares equal to the
quotient  obtained by dividing (i) the product of the Total Share Number and the
existing Exercise Price per Warrant Share by (ii) the Market Price (as hereafter
defined)  of  a  share  of  Common  Stock.

     (b)     As  used in this Section 5.5, the phrase "Market Price" at any date
shall be deemed to be the last reported sale price, or, in case no such reported
sale  takes  place on such day, the average of the last reported sale prices for
the  last  three  trading  days,  in  either  case as officially reported by the
principal securities exchange on which the Common Stock is listed or admitted to
trading  or  by  the  Nasdaq Stock Market National Market ("Nasdaq"), or, if the
Common  Stock  is  not  listed or admitted to trading on any national securities
exchange  or quoted by Nasdaq, the average closing bid price as furnished by the
National  Association  of  Securities  Dealers,  Inc. ("NASD") through Nasdaq or
similar  organization  if  Nasdaq is no longer reporting such information, or if
the  Common Stock is not quoted on Nasdaq, any exchange or similar organization,
as  determined  in  good  faith  by  resolution of the Board of Directors of the
Company,  based  on  the  best  information  available  to  it  for the two days
immediately  preceding  such  issuance  or  sale and the day of such issuance or
sale.

SECTION  5.6     Mandatory  Exercise.
                 -------------------

     (a)     In  the  event the closing bid price of the Common Stock for twenty
(20)  consecutive  trading  days  is  equal  to  at  least  $5.00  per share (as
appropriately  adjusted  for  stock  splits,  stock  dividends,  combinations,
recapitalizations,  reclassifications, mergers, consolidations and other similar
events),  the Company shall have the right to cause the exercise of the Warrants
at  any  time  thereafter by the Warrantholders by giving written notice to each
Warrantholder  of  such  election  (a  "Mandatory  Exercise  Election  Notice");
provided  that  the  Warrant  Shares issuable upon such exercise shall have been
Registered  (as  defined)  and  listed  on  each  securities  exchange,
over-the-counter  market  or  on  the  Nasdaq  National  Market on which similar
Securities  issued  by  the  Company  are then listed.  "Registered" refers to a
registration  effected  by  preparing  and  filing  with the SEC, a registration
statement in compliance with the Securities Act, as amended, and the declaration
or  ordering  by  the  Commission  of  the  effectiveness  of  such registration
statement.

                                     Page 7
<PAGE>
     (b)     Upon  receipt  of  a  Mandatory  Exercise  Election  Notice,  each
Warrantholder  shall  have  the  right to exercise its Warrants on the terms and
conditions  herein  (including  Section  5.5);  provided,  however,  that  the
                                                ------------------
Expiration  Date  with  respect  to such Warrants shall be deemed to be the date
that  is  fifteen (15) Business Days immediately after the date of the Mandatory
Exercise  Election  Notice.

                                    ARTICLE 6

                          RESERVATION OF WARRANT SHARES

     SECTION 6.1     Reservation.  Subject to the terms of Sections 6.6 and 8 of
                     -----------
the Securities Purchase Agreement, the Company shall at all times keep reserved,
free  from  preemptive  rights,  out  of  its  authorized Common Stock, or other
securities  of  the Company issuable upon the exercise of the Warrants, a number
of  shares  of Common Stock, or such other securities, sufficient to provide for
the  exercise  of'  the  right  of  purchase  represented by all outstanding and
unexpired  Warrants.

     SECTION  6.2     Covenant.  The  Company  covenants that any Warrant Shares
                      --------
will,  upon  issuance,  be  (i)  validly issued and upon payment of the exercise
price  therefor,  fully  paid  and  free  from all taxes payable by the Company,
liens,  charges  and  security  interests (except any liens, charges or security
interests  created  or suffered to be created by any of the Warrantholders), and
will  not  be subject to any restrictions on voting or transfer thereof that are
created  by  the  Company,  except  for  such restrictions on transfer under the
Securities  Act  or  applicable  state  securities laws; and (ii) Registered and
listed  on  each  securities  exchange, over-the-counter market or on the Nasdaq
National  Market  on  which  similar  securities  issued by the Company are then
listed.

                                    ARTICLE 7

                 ADJUSTMENTS AFFECTING THE EXERCISE OF WARRANTS

     SECTION  7.1     Special  Definitions.  For purposes of this Article 7, the
                      --------------------
following  definitions  shall  apply:

     (a)     "Additional Shares of Common Stock" shall mean all shares of Common
Stock  issued  (or,  pursuant  to Section 7.2 below, deemed to be issued) by the
Company  after the Original Issue Date, other than shares of Common Stock issued
or  issuable:

          (i)     upon  conversion  of  shares  of  the  Company's Class A and B
Preferred  Stock  outstanding  on  the  Original  Issue  Date;

          (ii)     upon  the  exercise  of  warrants outstanding on the Original
Issue  Date  or  issued  under  the  Securities  Purchase  Agreement;

          (iii)     as a dividend or distribution on the Company's Class A and B
Preferred  Stock  or  such  Warrants;

                                     Page 8
<PAGE>
          (iv)     in connection with an acquisition or other transaction by the
Company  (including  the  Pensat  Transaction),  in  either case approved by the
Investors,  unless the Company agrees to include such issuance in the definition
of  Additional  Shares of Common Stock in connection with obtaining the approval
of  the  Investors  to  such  acquisition  or  other  transaction;

          (v)     by  reason  of  a  dividend,  stock  split, split--up or other
distribution  on  shares  of  Common  Stock  excluded  from  the  definition  of
Additional Shares of Common Stock by the foregoing clauses (i), (ii), (iii), and
(iv)  or  this  clause  (v);

          (vi)     upon  the exercise of options excluded from the definition of
"Option"  in  Section  7.1(c).

     (b)     "Convertible  Securities" shall mean any evidences of indebtedness,
shares  or  other  securities other than options excluded from the definition of
"Option"  in  Section  7.1(c)  directly  or  indirectly  convertible  into  or
exchangeable  for  Common  Stock.

     (c)     "Option"  shall  mean rights, options or warrants to subscribe for,
purchase  or otherwise acquire Common Stock or Convertible Securities, excluding
(i)  options  granted to employees, officers, directors or issued to consultants
of the Company or rights, convertible securities or warrants which, in each such
case,  are  outstanding  as  of  the  date  of this Agreement, (ii) any Warrants
outstanding  on  the  Original Issue Date or issued under this Agreement or as a
direct  result  of  the  issuance of Class A or B Preferred Stock, (iii) options
granted  to  employees,  officers,  directors  or  consultants pursuant to stock
option  plans existing on the Original Issue Date (as defined) or adopted by the
Board  of  Directors  and approved by the Compensation Committee of the Board of
Directors  and  by  the  Investors  after  the date hereof, or (iv) any Warrants
issued  as  a  direct  result  of  the  issuance  of  Class C Preferred Stock in
connection  with  the  Pensat  Transaction.

     (d)     "Original  Issue  Date"  shall mean the date on which a Warrant was
first  issued.

                                     Page 9
<PAGE>
     SECTION  7.2     Issue  of  Securities Deemed Issue of Additional Shares of
                      ------------------------------------- --------------------
Common  Stock.  If  the  Company  at  any  time  or  from time to time after the
-------------
Original  Issue Date shall issue any Options or Convertible Securities, then the
maximum  number  of  shares  of  Common  Stock  (as  set forth in the instrument
relating  thereto  without  regard  to  any  provision  contained  therein for a
subsequent adjustment of such number) issuable upon the exercise of such Options
or,  in  the case of Convertible Securities and Options therefor, the conversion
or  exchange  of  such  Convertible  Securities and the exercise of such Options
therefor,  shall  be deemed to be Additional Shares of Common Stock issued as of
the time of such issuance, provided that Additional Shares of Common Stock shall
not be deemed to have been issued unless the consideration per share (determined
pursuant  to Section 7.4 hereof) of such Additional Shares of Common Stock would
be  less  than the applicable Exercise Price in effect immediately prior to such
issuance  and  provided further that in any such case in which Additional Shares
of  Common  Stock  are  deemed  to  be  issued:

     (a)     No  further adjustment in the Exercise Price shall be made upon the
subsequent issuance of Convertible Securities or shares of Common Stock upon the
exercise  of  such  Options  or  conversion  or  exchange  of  such  Convertible
Securities;

     (b)     If  such  Options or Convertible Securities by their terms provide,
with  the  passage  of  time or otherwise, for any increase in the consideration
payable  to  the  Company,  or  decrease in the number of shares of Common Stock
issuable,  upon the exercise, conversion or exchange thereof, the Exercise Price
computed  upon  the  original  issuance  thereof, and any subsequent adjustments
based  thereon, shall, upon any such increase or decrease becoming effective, be
recomputed  to  reflect  such  increase  or  decrease insofar as it affects such
Options  or  the  rights  of  conversion  or  exchange  under  such  Convertible
Securities;

     (c)     No  readjustment pursuant to clause (b) above shall have the effect
of  increasing  the Exercise Price to an amount which exceeds the Exercise Price
on  the  original  adjustment  date;  and

     (d)     In  the event of any change in the number of shares of Common Stock
issuable  upon the exercise, conversion or exchange of any Option or Convertible
Security,  including,  but  not  limited  to,  a  change  resulting  from  the
anti-dilution  provisions  thereof,  the  Exercise  Price  then  in effect shall
forthwith  be  readjusted  to such Exercise Price as would have obtained had the
adjustment  which  was  made  upon  the  issuance  of such Option or Convertible
Security  which have not been exercised oi converted prior to such change in the
number of shares of Common Stock been made upon the basis of such change, but no
further  adjustment  shall  be made for the actual issuance of Common Stock upon
the  exercise  or  conversion  of  any  such  option  or  Convertible  Security.

                                    Page 10
<PAGE>
     SECTION  7.3     Adjustment  of  Exercise Price Upon Issuance of Additional
                      ----------------------------------------------------------
Shares  of  Common  Stock.  In the event the Company Shall at any time after the
-------------------------
Original  Issue  Date  issue  Additional  Shares  of  Common  Stock  (including
Additional  Shares  of Common Stock deemed to be issued pursuant to Section 7.2,
but excluding shares issued as a dividend or distribution as provided in Section
7.6  or  upon  a stock split or combination as provided in Section 7.5), without
consideration  or  for a consideration per share (determined pursuant to Section
7.4  hereof) less than the applicable Exercise Price in effect immediately prior
to  such issuance, then and in such event, such Exercise Price shall be reduced,
concurrently  with  such  issuance,  to  an  Exercise  Price  equal to the price
determined by dividing (a) the sum of (1) the product derived by multiplying the
Exercise  Price  in  effect  immediately prior to such issuance by the number of
shares  of Common Stock outstanding immediately prior to such issuance (together
with  the  number  of  shares of Common Stock then issuable upon exercise of the
outstanding  Warrants  and  the  conversion  or  exercise  of  any  Convertible
Securities  or  Options),  plus  (2) the aggregate consideration received by the
Corporation (as determined pursuant to Section 7.4 below) upon such issuance, by
(b)  the  number  of  shares  of Common Stock outstanding immediately after such
issuance  (together with the number of shares of Common Stock then issuable upon
exercise  of  the  outstanding  Warrants  and  the conversion or exercise of any
Convertible  Securities  or  Options).

     SECTION  7.4     Determination  of  Consideration.  For  purposes  of  this
                      --------------------------------
Section  7,  the  consideration  received by the Company for the issuance of any
Additional  Shares  of  Common  Stock  shall  be  computed  as  follows:

     (a)     Cash  and  Property.  Such  consideration  shall:
             -------------------

          (i)     insofar  as  it consists of cash, be computed at the aggregate
of  cash  received by the Company, excluding amounts paid or payable for accrued
interest  or  accrued  dividends;

          (ii)     insofar  as  it  consists  of  property  other  than cash, be
computed  at  the  fair  market  value  thereof at the time of such issuance, as
determined  in  good  faith  by  the  Board  of  Directors;  and

          (iii)     in  the  event  Additional Shares of Common Stock are issued
together  with  other  shares  of  securities or other assets of the Company for
consideration  which  covers  both,  be  the proportion of such consideration so
received,  computed  as provided in clauses (i) and (ii) above, as determined in
good  faith  by  the  Board  of  Directors.

     (b)     Options  and  Convertible  Securities.  The consideration per share
             -------------------------------------
received  by  the  Company  for Additional Shares of Common Stock deemed to have
been  issued  pursuant  to  Section  7.2,  relating  to  Options and Convertible
Securities,  shall  be  determined  by  dividing:

          (i)     the  total  amount,  if  any,  received  or  receivable by the
Company  as  consideration  for  the  issuance  of  such  Options or Convertible
Securities,  plus  the  minimum aggregate amount of additional consideration (as
set  forth  in the instruments relating thereto, without regard to any provision
contained  therein for a subsequent adjustment of such consideration) payable to
the  Company  upon the exercise of such Options or the conversion or exchange of
such  Convertible  Securities,  or  in  the  case  of  Options  for  Convertible
Securities,  the  exercise  of  such  options for Convertible Securities and the
conversion  or exchange of such Convertible Securities, by the maximum number of
shares  of  Common  Stock  (as  set  forth  in the instruments relating thereto,
without regard to any provision contained therein for a subsequent adjustment of
such  number)  issuable  upon  the exercise of such options or the conversion or
exchange  of  such  Convertible  Securities.

                                    Page 11
<PAGE>
     SECTION  7.5     Adjustment  for  Stock  Splits  and  Combinations.  If the
                      -------------------------------------------------
Company shall at any time or from time to time after the Original Issue Date for
the  Warrants effect a subdivision of the outstanding Common Stock, the Exercise
Price  of  each Warrant then in effect immediately before that subdivision shall
be  proportionately  decreased and the number of shares of Common Stock issuable
upon  exercise  of  such  Warrant  shall  be  proportionately increased.  If the
Company shall at any time or from time to time after the Original Issue Date for
the  Warrants combine the outstanding shares of Common Stock, the Exercise Price
of  each  Warrant  then  in  effect  immediately before the combination shall be
proportionately increased and the number of shares of Common Stock issuable upon
exercise  of  such  Warrant  shall be proportionately decreased.  Any adjustment
under  this  Section  7.5 shall become effective at the close of business on the
date  the  subdivision  or  combination  becomes  effective.

     SECTION 7.6     Adjustment for Certain Dividends and Distributions.  In the
                     ------------------------------------ -------------
event the Company at any time or from time to time after the Original Issue Date
for the Warrants shall make or issue a dividend or other distribution payable in
additional  shares  of  Common  Stock,  then and in each such event the Exercise
Price  for the Warrants then in effect shall be decreased as of the time of such
issuance  or,  in  the event such a record date shall have been fixed, as of the
close of business on such record date, by multiplying the Exercise Price for the
Warrants  then  in  effect  by  a  fraction:

     (a)     the  numerator  of  which  shall  be  the total number of shares of
Common  Stock  issued  and  outstanding  immediately  prior  to the time of such
issuance  or  the  close  of  business  on  such  record  date,  and

     (b)     the  denominator  of  which  shall be the total number of shares of
Common  Stock  issued  and  outstanding  immediately  prior  to the time of such
issuance  or the close of business on such record date plus the number of shares
of  Common Stock issuable in payment of such dividend or distribution; provided,
                                                                       --------
however,  if  such  record  date  shall have been fixed and such dividend is not
-------
fully paid or if such distribution is not fully made on the date fixed therefor,
the  Exercise  Price  for the Warrants shall be recomputed accordingly as of the
close  of business on such record date and thereafter the Exercise Price for the
Warrants  shall  be adjusted pursuant to this paragraph as of the time of actual
payment  of  such  dividends  or  distributions.

     The  number  of  Warrant  Shares issuable upon the exercise of the Warrants
shall  be adjusted by multiplying a number equal to the Exercise Price in effect
immediately  prior  to such adjustment by the number of shares issuable upon the
exercise  of  the Warrants immediately prior to such adjustment and dividing the
product  so  obtained  by  the  adjusted  Exercise  Price.

                                    Page 12
<PAGE>
     SECTION  7.7     Adjustments for Other Dividends and Distributions.  In the
                      -------------------------------------------------
event the Company at any time or from time to time after the Original Issue Date
for the Warrants shall make or issue a dividend or other distribution payable in
securities  of  the  Company other than shares of Common Stock, then and in each
such  event  provision  shall  be made so that the holders of the Warrants shall
receive  upon  exercise  thereof  in  addition to the number of shares of Common
Stock  receivable  thereupon,  the amount of securities of the Company that they
would  have received had their Warrants been exercised on the date of such event
and  had  thereafter,  during  the  period  from  the  date of such event to and
including  the  conversion  date, retained such securities receivable by them as
aforesaid  during  such  period giving application to all adjustments called for
during  such  period,  under  this  paragraph  with respect to the rights of the
holders  of  the  Warrants.

     SECTION 7.8     Adjustment for Reclassification, Exchange, or Substitution.
                     --------------------------------------------- ------------
If  the Common Stock issuable upon the exercise of the Warrants shall be changed
into  the same or a different number of shares of any class or classes of stock,
whether  by  capital reorganization, reclassification or otherwise (other than a
subdivision  or combination of shares or stock dividend provided for above, or a
reorganization,  merger,  consolidation,  or sale of assets provided for below),
then  and  in  each  such  event the holder of the Warrants shall have the right
thereafter to convert each such share of Common Stock issuable upon the exercise
of the Warrants into the kind and amount of shares of stock and other securities
and  property  receivable  upon  such reorganization, reclassification, or other
change,  by  holders  of  the  number  of  shares of Common Stock for which such
Warrants  might  have  been  exercised immediately prior to such reorganization,
reclassification,  or  change,  all  subject  to  further adjustment as provided
herein.

     SECTION  7.9     Adjustment  for  Merger or Reorganization.  In case of any
                      -----------------------------------------
consolidation  or  merger  of  the  Company  with  or into another Company, each
Warrant  shall  thereafter  be  exercisable for the kind and amount of shares of
stock  or other securities or property to which a holder of the number of shares
of  Common  Stock of the Company deliverable upon exercise of such Warrant world
have  been  entitled  upon  such  consolidation  or  merger;  and, in such case,
appropriate  adjustment  (as determined in good faith by the Board of Directors)
shall  be  made in the application of the provisions in this Article 7 set forth
with  respect  to  the  rights  and  interest  thereafter  of the holders of the
Warrants,  to the end that the provisions set forth in this Article 7 (including
provisions  with  respect  to  changes  in and other adjustments of the Exercise
Price)  shall  thereafter  be  applicable,  as  nearly  as reasonably may be, in
relation  to  any  shares of stock or other property thereafter deliverable upon
the  exercise  of  the  Warrants.

     SECTION  7.10  Notice  of  Adjustment to Exercise Price and Warrant Shares.
                    -----------------------------------------------------------

     (a)     Whenever  the Exercise Price is required to be adjusted as provided
in this Article 7, simultaneously with the adjustment of the Exercise Price, the
number  of  Warrant  Shares  issuable upon the exercise of the Warrants shall be
adjusted  by  multiplying  a  number  equal  to  the  Exercise  Price  in effect
immediately  prior  to such adjustment by the number of shares issuable upon the
exercise  of  the Warrants immediately prior to such adjustment and dividing the
product  so  obtained  by  the  adjusted  Exercise  Price.

                                    Page 13
<PAGE>
     (b)     Whenever  the Exercise Price is required to be adjusted as provided
in  this Article 7, or any other adjustment is required pursuant to this Article
7,  the  Company  shall  forthwith  compute  the adjusted Exercise Price and the
corresponding  number  of  Warrant  Shares purchaseable upon the exercise of the
Warrants  or  any  other  adjustment  made  pursuant to this Article 7 and shall
prepare  a  certificate  setting  forth  such  adjusted  Exercise  Price and the
corresponding  number  of  Warrant  Shares purchaseable upon the exercise of the
Warrants  or any other adjustment made pursuant to this Article 7 and showing in
reasonable detail the facts upon which such adjustments are based.  Whenever the
Exercise  Price and the corresponding number of Warrant Shares purchaseable upon
the  exercise  of  the  Warrants  are  adjusted  or any other adjustment is made
pursuant  to  this  Article  7,  the Company shall promptly mail, or cause to be
mailed,  to the Warrantholders a statement setting forth the adjustments and the
reasons  for  such  adjustments.

     SECTION  7.11     Form  of  Warrant  Certificate.  Irrespective  of  any
                       ------------------------------
adjustments in the Exercise Price or the kind of Warrant Shares purchasable upon
the  exercise  of  the  Warrants,  Warrant Certificates evidencing such Warrants
theretofore  or  thereafter  issued  may continue to express the same number and
kind  of  Warrant  Shares  as  are  stated in the Warrant Certificates initially
issuable  pursuant  to  this  Agreement.

     SECTION  7.12     No  Impairment.  Without  limiting  the generality of the
                       --------------
foregoing,  the  Company  shall  take  all  such  action  as may be necessary or
appropriate  in  order that the Warrant Shares to be issued upon the exercise of
the  Warrants from time to time outstanding will, when issued, be fully paid and
non-assessable.  In  addition,  without  limiting the generality of Section 6.1,
the  Company shall take all such action as shall be necessary so that, after any
adjustment  to the Exercise Price required hereunder, the total number of shares
of  Common  Stock  or  other capital stock of the Company then authorized by the
Amended  Articles  and  available for the purpose of issuance upon such exercise
shall  exceed  the  total  number  of  shares  of Common Stock issuable upon the
exercise of all of the outstanding Warrants.  The Company will not, by amendment
of  its  Articles  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 to be observed or performed hereunder by the Company, but will
at  all  times in good faith assist in the carrying out of all the provisions of
this  Article  7  and  in  the  taking of all such action as may be necessary or
appropriate  in  order  to  protect  the  rights  of  the Warrantholders against
impairment.

                                    ARTICLE 8

                                     NOTICES

     SECTION  8.1  Notices  to  Warrantholders.
                   ---------------------------

     (a)     Notices  to  holders of Warrants shall be delivered to such holders
at  the addresses of such holders as they appear in Section 8.2 hereof or in the
Warrant  Register  (in  the  case  of  transfers).  Any  such  notice  shall  be
sufficiently  given if sent by first-class certified or registered mail, postage
prepaid,  facsimile  or  overnight  courier.

                                    Page 14
<PAGE>
     (b)     In the event (i) of any consolidation or merger or binding exchange
of  interests  to  which  the  Company  is a party and for which approval of the
Investors  or  any holders of equity interests of the Company is required, or of
the conveyance or sale of all or substantially all of the assets of the Company,
or  of any change of the Common Stock or other securities issuable upon exercise
of  the  Warrants; or (ii) the Company shall make any distribution in respect of
the  Common  Stock;  or  (iii)  of  the  voluntary  or  involuntary dissolution,
liquidation  or  winding  up of the Company; then the Company shall send to each
Warrantholder  at  least  thirty  days  prior to the applicable date hereinafter
specified,  a  written  notice stating (A) the date for the determination of the
holders  of  Common Stock (or other Securities issuable upon the exercise of the
Warrants)  entitled to receive any such distribution, (B) the initial expiration
date  Set forth in any offer for exchange of interests, or (C) the date on which
any  such  consolidation,  merger,  exchange of interests, conveyance, transfer,
reclassification,  dissolution,  liquidation or winding up is expected to become
effective  or  consummated, and the date as of which it is expected that holders
of record of Common Stock (or other securities issuable upon the exercise of the
Warrants)  shall  be  entitled  to  exchange such Common Stock for securities or
other  property,  if any, deliverable upon such reclassification, consolidation,
merger, exchange of interests, conveyance, transfer, dissolution, liquidation or
winding  up.

     SECTION  8.2  Notices  to Company.  Any notice or demand authorized by this
                   -------------------
Agreement  to  be  given to or on the parties shall be delivered in person or by
facsimile  transmission, by courier guaranteeing overnight delivery or mailed by
first-class  United  States  certified  or  registered mail, postage prepaid, as
follows:

a)  if  to  the  Company:

          Pointe  Communications  Corporation
          1325  Northmeadow  Parkway
           Suite  110
          Roswell,  Georgia  30076
          Attention:  Stephen  E.  Raville
          Facsimile:  (770)  319-2834

with  a  copy  to:

          Gardere  &  Wynne,  LLP
          3000  Thanksgiving  Tower
          1601  Elm  Street
          Dallas,  TX  75201-4761
          Attention:  W.  Robert  Dyer  Jr.
          Facsimile:  (214)  999-3574

                                    Page 15
<PAGE>
(b)  if  to  TSG:

          TSG  Capital  Fund  III,  L.P.
          177  Broad  Street,  12th  Floor
          Stamford,  CT  06901
          Attention:  Darryl  B.  Thompson
          Facsimile:  (203)  406-1590

with  a  copy  to  (which  shall  not  constitute  notice):

          Mayer,  Brown  &  Platt
          1675  Broadway
          New  York,  NY  10019
          Attention:  Kathleen  A.  Walsh
          Facsimile:  (212)  262-1910

(c)  if  to  OCP  II:

          Opportunity  Capital  Partners  II,  L.P.
          2201  Walnut  Avenue,  Suite  210
          Fremont,  California  94538
          Attention:  Lewis  E.  Byrd
          Facsimile:  (510)  494-5439

with  a  copy  to  (which  shall  not  constitute  notice):

          Folger  Levin  &  Kahn,  L.L.P.
          Embarcadero  Center  West
          275  Battery  Street,  23rd  Floor
          San  Francisco,  California  94111
          Attention:  Christopher  Conner,  Esq.
          Facsimile:  (415)  986-2827

(d)  if  to  OCP  III:

          Opportunity  Capital  Partners  III,  L.P.
          2201  Walnut  Avenue,  Suite  210
          Fremont,  California  94538
          Attention:  Lewis  E.  Byrd
          Facsimile:  (510)  494-5439

                                    Page 16
<PAGE>
with  a  copy  to  (which  shall  not  constitute  notice):

          Folger  Levin  &  Kahn,  L.L.P.
          Embarcadero  Center  West
          275  Battery  Street,  23rd  Floor
          San  Francisco,  California  94111
          Attention:  Christopher  Conner,  Esq.
          Facsimile:  (415)  986-2827

     SECTION  8.3  Receipt  of Notice.  Any notice hereunder shall be in writing
                   ------------------
and  shall  be deemed effectively given and received upon delivery in person, or
two  business  days  after  delivery by national overnight courier service or by
telecopier  transmission  with  acknowledgment  of transmission receipt, or five
business  days  after  deposit  via certified or registered mail, return receipt
requested.

                                    ARTICLE 9

                                  MISCELLANEOUS

     SECTION  9.1     WAIVER  OF  JURY  TRIAL.  THE COMPANY AND EACH INVESTOR DO
                      -----------------------
HEREBY  KNOWINGLY,  VOLUNTARILY,  INTENTIONALLY AND IRREVOCABLY WAIVE SUCH RIGHT
ANY  PARTY  MAY  HAVE  TO  A  JURY  TRIAL  IN  EVERY JURISDICTION IN ANY ACTION,
PROCEEDING  OR  COUNTERCLAIM  BROUGHT  BY  ANY  OF  THE  PARTIES HERETO OR THEIR
RESPECTIVE  AFFILIATES,  SUCCESSORS OR ASSIGNS AGAINST ANY OTHER PARTY HERETO OR
THEIR  RESPECTIVE  AFFILIATES,  SUCCESSORS  OR  ASSIGNS IN RESPECT OF ANY MATTER
ARISING  OUT  OF  OR  IN  CONNECTION  WITH  THIS AGREEMENT OR ANY OTHER DOCUMENT
EXECUTED  AND DELIVERED BY ANY PARTY IN CONNECTION THEREWITH (INCLUDING, WITHOUT
LIMITATION,  ANY  ACTION  TO RESCIND OR CANCEL THIS AGREEMENT, AND ANY CLAIMS OR
DEFENSES  ASSERTING  THAT  THIS  AGREEMENT WAS FRAUDULENTLY INDUCED OR OTHERWISE
VOID  OR  VOIDABLE).

     SECTION  9.2      Payment  of Taxes.  The Company covenants and agrees that
                       -----------------
it  will  pay  when  due  and  payable  all  documentary,  stamp and other taxes
attributable  to  the issuance or delivery of the Warrant Certificates or of the
Warrant Shares purchasable upon the exercise of Warrants; provided, however, the
                                                          --------
Company  shall  not  be  required to pay any tax or taxes that may be payable in
respect of any transfer involving the issue of any Warrant Certificate(s) or any
certificates)  for Warrant Shares in a name other than that of the Warrantholder
of  such  exercised  Warrant  Certificate  (s)

                                    Page 17
<PAGE>
SECTION  9.3     Amendment.
                 ---------

     (a)     The Company may modify this Agreement and the terms of the Warrants
only  with the consent of the Warrantholders representing at least sixty-six and
two-thirds percent (66 2/3%) of the Warrant Shares for the purpose of adding any
provision  to  or changing in any manner or eliminating any of the provisions of
this  Agreement  or  modifying  in  any  manner the rights of the holders of the
outstanding  Warrants;  provided,  however,  that  no such modification that (i)
                        --------   -------
materially  and  adversely  affects  the  exercise  rights of the holders of the
Warrants  or  (ii) reduces the percentage required for modification, may be made
without  the  consent  of  the  holder  of  all  outstanding  warrants.

     (b)     Any  such  modification or amendment will be conclusive and binding
on  all  present  and future holders of Warrant Certificates whether or not they
have  consented  to  such modification or amendment or waiver and whether or not
notation  of  such  modification  or  amendment  is  made  upon  such  Warrant
Certificates.  Any  instrument  given by or on behalf of any holder of a Warrant
Certificate in connection with any consent to any modification or amendment will
be conclusive and binding on all Subsequent holders of such Warrant Certificate.

     SECTION  9.4  Termination.  This  Agreement  shall terminate on or upon (a)
                   -----------
the  repurchase  by the Company of all Warrants, (b) the fifteenth day following
the  date  on which all of the Warrant Shares have been issued upon the exercise
of  all  Warrants  issued  pursuant  hereto,  or  (c)  the  Expiration  Date.

     SECTION  9.5  Reports  to  Warrantholders.  The  Company  will  cause to be
                   ---------------------------
delivered, by first-class mail, postage prepaid, facsimile or overnight courier,
to  each  Warrantholder at such Warrantholder's address appearing on the Warrant
Register,  a  copy of any reports delivered by the Company to any of the holders
of  Class  B  Preferred  Stock  or  to  holders  of  the  Common  Stock.

     SECTION 9.6  GOVERNING LAW.  THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN
                  -------------
THIS  AGREEMENT  AND  THE  WARRANT  CERTIFICATES WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS  OF  LAW.

     SECTION  9.7  Benefits  of this Agreement.  Nothing in this Agreement shall
                   ----------------------------
be  construed  to  give to any Person other than the Company, the Warrantholders
and  the holders of Warrant Shares any legal or equitable right, remedy or claim
under this Agreement; this Agreement shall be for the sole and exclusive benefit
of  the  Company,  the  Warrantholders  and  the  holders  of  Warrant  Shares.

                                    Page 18
<PAGE>
     SECTION 9.8  Counterparts.  This Agreement may be executed in any number of
                  ------------
counterparts,  and each of such counterparts shall for all purposes be deemed to
be  an original, and all such counterparts shall together constitute but one and
the  same  instrument.  Facsimile  transmission  of any signed original document
and/or  retransmission  of  any signed facsimile transmission will be deemed the
same as delivery of any original.  At the request of any party, the parties will
confirm  facsimile  transmission  by  signing  a  duplicate  original  document.

     SECTION  9.9  Severability  of Provisions.  Any provision of this Agreement
                   ---------------------------
that  is  prohibited  or  unenforceable  in  any  jurisdiction shall, as to such
jurisdiction,  be  ineffective  to  the  extent  of  such  prohibition  or
unenforceability  without  invalidating  the  remaining  provisions  hereof  or
affecting  the  validity  or  enforceability  of  such  provision  in  any other
jurisdiction.

     SECTION 9.10  Headings.  The headings of the sections of this Agreement are
                   --------
inserted for convenience only and shall not constitute a part of this Agreement.

     SECTION  9.11  Access  to  Company  Records.  So  long  as  Warrants remain
                    ----------------------------
outstanding,  each  Investor  shall  be  entitled  to  review  the financial and
corporate  books  and  records  of  the  Company  and to meet with the executive
officers  and  independent  accountants  of  the Company for purposes reasonably
related  to  the  Investor's  ownership  of  the  Warrants,  which review and/or
meetings  shall  take place at reasonable times during the normal business hours
of  the Company and in such a manner as to not unduly interfere with the conduct
of  the  Company's  business.

                                    Page 19
<PAGE>
     IN  WITNESS  WHEREOF, the parties hereto have caused this Warrant Agreement
to  be  duly  executed,  as  of  the  date  first  above  written.

                         POINTE  COMMUNICATIONS  CORPORATION

                         By:______________________________________
                              Patrick  E.  Delaney
                              Chief  Financial  Officer

                         TSG  CAPITAL  FUND  III,  L.P.,
                         a  Delaware  limited  partnership

                         By:  TSG  Associates  III,  L.L.C.,
                              Its  General  Partner

                              By:_________________________
                              Name:_______________________
                              Title:________________________

                         OPPORTUNITY  CAPITAL  PARTNERS  II,  L.P.
                         a  Delaware  limited  partnership

                         By:  Thompson  Capital  Management,  L.P.
                              Its  General  Partner

                              By:_______________________________
                                   Lewis  E.  Byrd
                                   Partner

                                    Page 20
<PAGE>
                         OPPORTUNITY  CAPITAL  PARTNERS  III,  L.P.
                         a  Delaware  limited  partnership

                         By:  JM  Capital  Management,  L.P.
                              Its  General  Partner

                              By:_______________________________
                                   Lewis  E.  Byrd
                                   General  Partner

                                    Page 21
<PAGE>
                                    EXHIBIT A
                                    ---------

                        POINTE COMMUNICATIONS CORPORATION

                          Common Stock Purchase Warrant
                                  Number _____

                Warrant Certificate Evidencing Right to Purchase

                         I      ] Shares of Common Stock

     This  is  to certify that [Investor], [a _________________], or assigns, is
entitled to purchase at any time or from time to time up to the above-referenced
number  of  shares  of  Common  Stock ("Common Stock"), of Pointe Communications
Corporation,  a  Nevada  corporation (the "Company"), for the Exercise Price for
the  Warrants  specified  in  the Warrant Agreement, dated as of_________, 1999,
between  the  Company  and TSG Capital Fund III, L.P. (the "Warrant Agreement"),
pursuant  to which this Warrant Certificate is issued.  All rights of the holder
of  this  Warrant  Certificate  are  subject  to the terms and provisions of the
Warrant  Agreement,  copies  of which are available for inspection the Company's
office  located  at1325  Northmeadow  Parkway, Suite 110, Roswell, Georgia 30076
(the  "Office").  The  Expiration  Date (as defined in the Warrant Agreement) of
the right to purchase Common Stock pursuant to this Certificate is August _____,
2004.

     NEITHER  THE  WARRANTS  REPRESENTED  BY  THIS CERTIFICATE NOR THE SHARES OF
COMMON  STOCK  THAT  MAY  BE PURCHASED UPON EXERCISE HEREOF HAVE BEEN REGISTERED
UNDER  THE  SECURITIES  ACT  OF  1933,  AS  AMENDED  (THE  "ACT"),  OR UNDER ANY
APPLICABLE  STATE  LAW.  SUCH  WARRANTS  AND SHARES MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  PLEDGED  WITHOUT  (1) REGISTRATION UNDER THE ACT AND ANY
APPLICABLE  STATE  LAW,  OR  (2)  THE  AVAILABILITY  OF  AN  EXEMPTION FROM SUCH
REGISTRATION.

     Subject  to  the  provisions  of  the  Act,  applicable state laws and such
Warrant  Agreement,  this  Warrant  Certificate  and  all  rights  hereunder are
transferable,  in whole or in part, at the Office by the holder hereof in person
or  by  a  duly authorized attorney, upon surrender of this Warrant Certificate,
together  with  the  assignment  hereof  duly  endorsed.  Until transfer of this
Warrant  Certificate  on  the  books  of  the Company, the Company may treat the
registered  holder  hereof  as  the  owner  hereof  for  all  purposes.

<PAGE>
     IN  WITNESS  WHEREOF, the Company has caused this Warrant Certificate to be
executed  on  this  ___  day of_________, 1999 in Atlanta, Georgia by its proper
corporate  officers  thereunto  duly  authorized.

                    POINTE  COMMUNICATIONS  CORPORATION
                    a  Nevada  corporation

                    By:______________________________________
                    Name:____________________________________
                    Title:_____________________________________

Attest:_________________________________
Name:_________________________________
Title:__________________________________

<PAGE>
                                    EXHIBIT B
                                    ---------

                              Election to Purchase
                   (To be executed by the registered holder if
            such holder desires to exercise any Warrant Certificate)

     The undersigned, the registered holder of the attached Warrant Certificate,
hereby  irrevocably  elects  to  exercise  Warrants  represented by such Warrant
Certificate  and  acquire  an
aggregate  of _____ shares of Common Stock of Pointe Communications Corporation,
a  Nevada corporation, and herewith tenders payment for such Common Stock in the
amount  of  $_______  (by  certified check or official bank check) in accordance
with  the terms hereof.  The undersigned requests that the aforementioned Common
Stock  be  registered  in  the  name  of  whose  address  is
_____________________________________________.

Dated:________________________

Name  of  registered  holder  of  Warrant  Certificate:

  _____________________________________________________________________________
                                 (please print)

Address                                of                             registered
holder:______________________________________________________

Signature:________________________________________

(Note:     the  signature  to the foregoing Election must correspond to the name
as written upon the face of the Warrant Certificate in every particular, without
alteration  or  any  change  whatsoever.)

<PAGE>
                                    EXHIBIT C
                                    ---------

                              Election to Purchase
             (To be executed by the registered holder if such holder
          desires to effect cashless exercise any Warrant Certificate)

     The undersigned, the registered holder of the attached Warrant Certificate,
hereby  irrevocably  elects  to  exchange  Warrants  represented by such Warrant
Certificate  and  acquire  an
aggregate  of  _________  shares  of  Common  Stock  of  Pointe  Communications
Corporation,  a  Nevada  corporation on        [DATE].  The undersigned requests
                                        -------------
that  the aforementioned Common Stock be registered in the name of whose address
is  __________________________  ___________________________________________.

Dated:_______________________________

Name  of  registered  holder  of  Warrant  Certificate:

  _____________________________________________________________________________
                                 (please print)

Address                                of                             registered
holder:______________________________________________________

Signature:______________________________________

(Note:     the  signature  to the foregoing Election must correspond to the name
as written upon the face of the Warrant Certificate in every particular, without
alteration  or  any  change  whatsoever)

<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE 1
                                   ----------

                                                   Aggregate
                                                    Purchase
                                        Number of   Price of
Purchaser                               Warrants*  Warrants*
--------------------------------------  ---------  ----------
<S>                                     <C>        <C>
TSG Capital Fund III, L.P.              8,571,429  $   80,000

Opportunity Capital Partners II, L.P.,    385,714  $    3,600

Opportunity Capital Partners III, L.P.     42,857  $      400
<FN>

*Subject  to  adjustment.
</TABLE>

<PAGE>REGISTRATION RIGHTS AGREEMENT

                                  by and among

                       POINTE COMMUNICATIONS CORPORATION,

                           TSG CAPITAL FUND III, L.P.,

                     OPPORTUNITY CAPITAL PARTNERS II, L.P.,

                                       and

                     OPPORTUNITY CAPITAL PARTNERS III, L.P.

                          Dated as of December 31, 1999

<PAGE>
                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into as of
                                               ---------
December  31,  1999,  by  and  among POINTE COMMUNICATIONS CORPORATION, a Nevada
corporation  (the  "Company"),  TSG  CAPITAL  FUND III, L.P., a Delaware limited
                    -------
partnership  and its Affiliates ("TSG"), OPPORTUNITY CAPITAL PARTNERS II, L.P. a
                                  ---
Delaware  limited  partnership ("OCP II"), and OPPORTUNITY CAPITAL PARTNERS III,
                                 ------
L.P.,  a Delaware limited partnership ("OCP III") (hereinafter, TSG, OCP II, and
                                        -------
OCP  III  shall  each  be referred to as a "Purchaser" and shall collectively be
                                            ---------
referred  to  as  "Purchasers").
                   ----------

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

     WHEREAS,  the  Company  has  entered  into that certain Securities Purchase
Agreement  (the  "Securities  Purchase Agreement") dated September 7, 1999, with
                  ------------------------------
Purchasers  pursuant  to  which  the  Company  issued a Promissory Note (each, a
"Note"  and collectively, the "Notes") to each Purchaser convertible into shares
                               -----
of the Company's Class B Convertible Senior Preferred Stock, par value $0.01 per
share (the "Class B Preferred"), and Warrants to acquire shares of the Company's
            -----------------
Common  Stock  (as  defined  herein);  and

     WHEREAS,  the  Company has agreed to grant certain registration rights with
respect  to  the  shares  of  the Company's Common Stock, par value $0.00001 per
share  (the  "Common  Stock"), issuable upon conversion of the Class B Preferred
              -------------
(including shares of Class B Preferred issued as dividends) and upon exercise of
the  Warrants;

     NOW,  THEREFORE,  in  consideration  of  the  foregoing  and  of the mutual
promises  and  covenants  contained  herein,  and  for  other  good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties,  intending  to  be  legally  bound,  hereby  agree  as  follows:

                                    ARTICLE 1
                                   DEFINITIONS

     As  used  herein,  the  following terms shall have the following respective
meanings:

     1.1     "Commission"  shall mean the Securities and Exchange Commission, or
              ----------
any other successor federal agency at the time administering the Securities Act.

     1.2     "Common  Stock"  shall  mean  the Company's common stock, par value
              -------------
$0.00001  per  share.

<PAGE>
     1.3     "Exchange  Act"  shall mean the Securities Exchange Act of 1934, as
              -------------
amended,  or  any  similar  federal statute and the rules and regulations of the
Commission  thereunder,  all  as  the  same  shall  be  in  effect  at the time.

     1.4     "Initiating  Holders"  shall  mean any Holder or Holders who in the
              -------------------
aggregate  own not less than twenty percent (20%) of the Registrable Securities.

     1.5     "Holders"  shall  mean  and  include  Purchasers  and any person or
              -------
entity that shall, pursuant to Article 11 hereof, become a party hereto, and any
permitted transferee under Article 10 hereof which holds Registrable Securities.

     1.6     "Qualified  Offering"  shall  mean the closing of a firm commitment
              -------------------
underwritten  public  offering  pursuant  to an effective registration statement
under  the  Securities  Act,  covering the offer and sale of Common Stock to the
public  that  raises  net  aggregate  proceeds  for  the  Company  in  excess of
$30,000,000  and  at  a  purchase  price per share in excess of $4.00 per share.

     1.7     The  terms  "register,"  "registered" and "registration" refer to a
                          --------     ----------       ------------
registration effected by preparing and filing with the Commission a registration
statement in compliance with the Securities Act, and the declaration or ordering
by  the  Commission  of  the  effectiveness  of  such  registration  statement.

     1.8     "Registrable  Securities" means any and all shares of Common Stock:
              -----------------------
(1)  issued  or  issuable  upon  conversion  of the Class B Preferred, including
shares  of  Class  B  Preferred issued as dividends; (2) issued or issuable upon
exercise  of the Warrants; (3) issued or issuable with respect to the securities
referred  to  in  clause  (1)  above  by way of any stock split, stock dividend,
combination,  recapitalization, reclassification, merger, consolidation or other
similar  event;  and  (4)  otherwise  held  or acquired by holders of securities
described  in  clause  (1)  above,  excluding in all cases, however, Registrable
Securities  sold  by  a Holder to the public or pursuant to Rule 144 promulgated
under the Securities Act (or any similar or analogous rule promulgated under the
Securities Act) or shares of Common Stock acquired by a Holder in an open market
transaction.  For  purposes  of  this Agreement, a person will be deemed to be a
Holder  of  Registrable Securities whenever such person has the right to acquire
directly  or indirectly such Registrable Securities (upon conversion or exercise
in  connection  with a transfer of securities or otherwise, but disregarding any
restrictions  or  limitations  upon  the exercise of such right), whether or not
such  acquisition  has  actually  been  effected.

                                        2
<PAGE>
          1.9     "Registration  Expenses"  shall  mean all expenses incurred by
                   ----------------------
the  Company  in  complying  with Articles 2, 3 and 4 hereof, including, without
limitation,  all registration, qualification and filing fees, printing expenses,
messenger  and  delivery  expenses, escrow fees, fees and disbursements of legal
counsel  for  the  Company  and  all  independent  certified public accountants,
underwriters  (excluding  discounts and commissions) and persons retained by the
Company  (but  excluding  the  compensation of regular employees of the Company,
which  shall be paid in any event by the Company), fees and disbursements of one
legal counsel for the selling Holders (not to exceed $50,000), blue sky fees and
expenses,  and  the expense of any special audits incident to or required by any
such  registration.

     1.10     "Securities  Act"  shall  mean  the  Securities  Act  of  1933, as
               ---------------
amended,  or  any  similar  federal statute and the rules and regulations of the
Commission  thereunder,  all  as  the  same  shall  be  in  effect  at the time.

     1.11     "Selling  Expenses"  shall  mean all underwriting fees, discounts,
               -----------------
selling  commissions  and  stock  transfer  taxes  applicable to the Registrable
Securities  registered  by  the  Holders.

                                    ARTICLE 2
                              REQUIRED REGISTRATION

     2.1     Required  Registration.
             ----------------------

     (a)     Subject  to  the provisions set forth in Article 5, within 120 days
after  conversion  of  the  Notes  into shares of Class B Preferred, the Company
shall file with the Commission a registration statement under the Securities Act
on Form S-3 or any appropriate form (or any successor form) pursuant to Rule 415
under  the  Securities Act (the "Required Registration").  The Company shall use
                                 ---------------------
its  best  efforts  to  cause the Required Registration to be declared effective
under  the  Securities  Act  as  soon  as  practicable  after  filing,  and once
effective,  the  Company  shall  cause  such  Required  Registration  to  remain
effective  for  a  Period ending on the earlier of: (i) the third anniversary of
the  Closing under the Securities Purchase Agreement; (ii) the date on which all
Registrable Securities have been sold pursuant to the Required Registration; and
(iii)  the  date  as  of which there are no longer any Registrable Securities in
existence (the "Effective Period").  The registration statement for the Required
                ----------------
Registration  shall  contain  a  broad-form  plan  of  distribution.

     2.2     Underwriting.
             ------------

     (a)     An  underwriting may be selected as a method of distribution of the
Registrable  Securities  covered by the Required Registration by Holders holding
sixty-six  and  two-thirds  percent  (66  2/3%)  (a  "Supermajority")  of  the
                                                      -------------
Registrable  Securities.

                                        3
<PAGE>
     (b)     If  a  distribution of the Registrable Securities is to be effected
by means of an underwriting, the Company (together with all Holders proposing to
distribute  their  securities  through  such  underwriting  (the  "Participating
                                                                   -------------
Holders")) shall use its best efforts to enter into an underwriting agreement in
      -
customary  form  and  reasonably  acceptable  to  the  Company  with  a managing
underwriter  of nationally recognized standing selected for such underwriting by
the Company and approved by the Participating Holders holding a Supermajority of
the Registrable Securities proposed to be distributed through such underwriting,
which  approval  shall  not  be  unreasonably  withheld.  In  no event shall the
Company  include  any  securities  under the Required Registration which are not
Registrable  Securities  without  the  prior written consent of the Holders of a
Supermajority of Registrable Securities, and any such securities permitted to be
sold  under  the  Required  Registration shall only be sold in connection with a
sale.  Notwithstanding  any  other  provision of this Article 2, if the managing
underwriter  advises the Participating Holders in writing that marketing factors
require  a  limitation  of  the  number  of  shares to be underwritten, then the
underwriters  may  exclude some or all of the shares requested to be included in
such  underwriting,  and the number of shares of Registrable Securities that may
be  included  in  the  underwriting  shall  be allocated among all Participating
Holders  thereof  in  proportion,  as  nearly  as practicable, to the respective
amounts  of  Registrable  Securities  held  by  such  Participating Holders.  No
Registrable  Securities excluded from the underwriting by reason of the managing
underwriter's  marketing  limitation  shall  be  included  in such underwriting.

     (c)     If  a  distribution  of  the  Registrable Securities is effected by
means  of  an  underwriting  and  if  any  Participating  Holder  of Registrable
Securities  disapproves  of the terms of the underwriting, such person may elect
to withdraw therefrom by written notice to the Company, the managing underwriter
and  the  other  Participating Holders.  The Registrable Securities and/or other
securities  so  withdrawn  shall  also  be  withdrawn  from  such  underwriting;
provided,  however,  that  if by the withdrawal of such Registrable Securities a
           -------
greater number of Registrable Securities held by other Participating Holders may
be included in such underwriting (up to the maximum of any limitation imposed by
the underwriters), then the Company shall offer to all Participating Holders who
have  included  Registrable  Securities in the registration the right to include
additional Registrable Securities in the same proportion used in determining the
underwriter  limitation  in  this  Section  2.2.

     2.3     Eligibility.  The  Company  represents, warrants and covenants that
             -----------
it  currently  is,  and shall use its best efforts to remain at all times during
the  Effective  Period,  eligible  to  use  Form  S-3  under the Securities Act.

     2.4     Opinion  of  Counsel.  Upon  the  request  of  the  Holders  of  a
             --------------------
Supermajority  of  the  Registrable  Securities,  the Company shall furnish such
Holders with an opinion of counsel satisfactory to such Holders stating that the
registration  statement  filed  in  connection with the Required Registration is
effective  and  stating  such  other  opinions  as such Holders shall reasonably
request.

                                    ARTICLE 3
                             REQUESTED REGISTRATION

                                        4
<PAGE>
     3.1     Request  for  Registration.  Beginning  on  the  date  which  is
             --------------------------
immediately  after  the  third  anniversary  of  the  date  of  this  Agreement,
Initiating  Holders  may request registration in accordance with this Article 3;
provided,  that such registration covers Registrable Securities representing 25%
of  the  then  total  amount of the Registrable Securities; and further provided
that  OCP  II  and  OCP  III  shall  have  the  right to join in such request by
Initiating Holders.  In the event the Company shall receive from any one or more
of  the  Initiating  Holders  a written request that the Company effect any such
registration,  qualification  or  compliance  with  respect  to  Registrable
Securities,  the  Company  will:

     (a)     promptly  give  written  notice  of  the  proposed  registration,
qualification  or  compliance  to  all  other  Holders;  and

     (b)     use  its best efforts to effect such registration, qualification or
compliance as soon as practicable (including, without limitation, undertaking to
file post-effective amendments, appropriate qualifications under applicable blue
sky  or  other state securities laws, and appropriate compliance with applicable
regulations  issued  under  the  Securities  Act,  and  any  other  governmental
requirements  or  regulations)  as  may  be  so requested and as would permit or
facilitate  the sale and distribution of all or such portion of such Registrable
Securities  as  are specified in such request, together with all or such portion
of  the  Registrable Securities of any Holder or Holders joining in such request
as  are  specified  in  a written request received by the Company within 15 days
after  the  receipt  of the written notice from the Company described in Section
3.1(a);  provided,  however, that the Company shall not be obligated to take any
         --------   -------
action  to effect any such registration, qualification or compliance Pursuant to
this  Article  3:

          (i)     in  any  particular jurisdiction in which the Company would be
required  to  execute  a general consent to service of process in effecting such
registration, qualification or compliance, unless the Company is already subject
to  service in such jurisdiction and except as may be required by the Securities
Act  ;

          (ii)     within  one  hundred  and  eighty  (180)  days  immediately
following  the effective date of any registration statement pertaining to a firm
commitment  underwritten  offering  of  securities  of  the  Company for its own
account;

          (iii)     after  the  Company  has  effected  three (3) such requested
registrations  pursuant  to  this  Article  3,  each  such registration has been
declared  or  ordered effective, and the Registrable Securities offered pursuant
to  each  such  registration  have been sold, or if the Company has effected any
requested  registration pursuant to this Agreement during the previous six-month
period;

          (iv)     if  the  Company,  within ten (10) days of the receipt of the
request  of  the  Holder  or Holders, gives notice of its bona fide intention to
effect  the  filing  of  a  registration  statement  with  the Commission within
forty-five  (45)  days  of receipt of such request (other than with respect to a
registration  statement relating to a Rule 145 transaction or an offering solely
to  employees).

                                        5
<PAGE>
     (c)     Subject  to  the  foregoing  clauses  (i) through (iv), the Company
shall  file  a  registration  statement  covering  the Registrable Securities so
requested  to  be registered as soon as practicable after receipt of the request
of the Initiating Holders and provide notice to the other Holders as required by
Section  3.1(a);  provided,  however,  that if the Company shall furnish to such
                  --------   -------
Holders  a  certificate signed by the Chairman or Chief Executive Officer of the
Company stating that in the good faith judgment of the Board of Directors of the
Company,  it  would  be detrimental to the Company and its stockholders for such
registration  statement  to  be filed, the Company shall have the right to defer
such  filing for a period of not more than 180 days after receipt of the request
of  the  Initiating  Holders;  provided,  further, that the Company shall not be
                               --------   -------
permitted  to  exercise  such deferral right under this Section 3.1(c) more than
once  in  any  365-day  period.

     3.2     Underwriting.
             ------------

     (a)     The  distribution  of  the  Registrable  Securities  covered by the
request  of the Holders shall be effected by means of the method of distribution
selected  by  the  Holders holding a Supermajority of the Registrable Securities
covered  by  such registration.  If such distribution is effected by means of an
underwriting, the right of any Holder to registration pursuant to this Article 3
shall  be  conditioned upon such Holder's participation in such underwriting and
the inclusion of such Holder's Registrable Securities in the underwriting to the
extent  provided  herein.

     (b)     If  such  distribution is effected by means of an underwriting, the
Company (together with the Participating Holders in such Underwriting) shall use
its  best  efforts to enter into an underwriting agreement in customary form and
reasonably  acceptable  to the Company with a managing underwriter of nationally
recognized  standing  selected for such underwriting by the Company and approved
by  a  Supermajority  in  interest  of the Participating Holders, which approval
shall not be unreasonably withheld.  Notwithstanding any other provision of this
Article  3,  if  the  managing  underwriter advises the Participating Holders in
writing  that marketing factors require a limitation of the number off shares to
be  underwritten,  then  the  underwriters  may  exclude  shares requested to be
included  in  such registration.  The number of shares of Registrable Securities
to  be  included in the registration and underwriting shall be allocated amongst
the  Participating  Holders  in  proportion,  as  nearly  as practicable, to the
respective  amounts of Registrable Securities held by such Participating Holders
at  the  time  of  filing the registration statement.  No Registrable Securities
excluded from the underwriting by reason of the managing underwriter's marketing
limitation  shall  be  included  in  such  registration.

     (c)     If  any  Participating  Holder  disapproves  of  the  terms  of the
underwriting,  such  person may elect to withdraw therefrom by written notice to
the  Company, the managing underwriter and the other Participating Holders.  The
Registrable  Securities  and/or  other  securities  so  withdrawn  shall also be
withdrawn  from  registration;  provided,  however, that if by the withdrawal of
                                --------   -------
such  Registrable  Securities a greater number of Registrable Securities held by
other  Participating  Holders  may  be  included in such registration (up to the
maximum  of  any limitation imposed by the underwriters), then the Company shall
offer  to  all Participating Holders who have included Registrable Securities in
the  registration  the right to include additional Registrable Securities in the
same  proportion  used in determining the underwriter limitation in this Section
3.2.

                                        6
<PAGE>
     3.3     Cancellation  of  Registration.  A Supermajority in interest of the
             ------------------------------
Participating  Holders shall have the right to cancel a proposed registration of
Registrable  Securities  pursuant to Article 3 when, in their discretion, market
conditions  are  so  unfavorable  as  to be seriously detrimental to an offering
pursuant to such registration.  Such cancellation of a registration shall not be
counted as one of the three (3) such requested registrations pursuant to Section
3.1(b)(iii);  provided,  however,  that  the Holders canceling such registration
shall  pay  expenses  attributable  to  such  registration.

                                    ARTICLE 4
                              COMPANY REGISTRATION

     4.1     Notice  of Registration to Holders.  If at any time or from time to
             ----------------------------------
time  the  Company shall determine to register any of its securities, either for
its own account or the account of a security holder or holders, other than (i) a
registration  relating  solely  to  employee  benefit  plans on Form S-8 (or any
successor  form) or (ii) a registration relating solely to a Commission Rule 145
transaction  on  Form  S-4  (or  any  successor  form),  the  Company  will:

     (a)     promptly  give  to  each  Holder  written  notice  thereof,  and

     (b)     include  in  such registration (and any related qualification under
blue  sky  laws  or other compliance), and in any underwriting involved therein,
all  the Registrable Securities specified in a written request or requests, made
within  30  days after receipt of such written notice from the Company described
in  Section  4.1(a),  by  any  Holder  or  Holders.

     4.2     Underwriting.  If  the  registration  of  which  the  Company gives
             ------------
notice  is  for  a  registered  public  offering  involving an underwriting, the
Company  shall  so  advise  the  Holders  as  a part of the written notice given
pursuant  to  Section  4.1(a).  In  such  event,  the  right  of  any  Holder to
registration  pursuant to this Article 4 shall be conditioned upon such Holder's
participation  in  such  underwriting  and  the  inclusion  of  such  Holder's
Registrable  Securities  in the underwriting to the extent provided herein.  All
Holders proposing to distribute their securities through such underwriting shall
(together  with  the  Company) enter into an underwriting agreement in customary
form  with  the  managing  underwriter  selected  for  such  underwriting by the
Company.

     (a)     Notwithstanding  any  other  provision  of  this  Article 4, if the
managing  underwriter  determines that marketing factors require a limitation of
the number of shares to be underwritten, the underwriter may exclude some or all
Registrable  Securities  from  such  registration and underwriting.  The Company
shall  so advise all Holders of Registrable Securities, and the number of shares
of  Common  Stock  to  be  included  in  such registration shall be allocated as
follows:  first,  for  the  account  of  the Company, all shares of Common Stock
proposed  to  be  sold  by the Company, and second, for the account of any other
stockholders  of  the  Company participating in such registration, the number of
shares  of  Common  Stock  requested  to be included in the registration by such
other  stockholders  in  proportion, as nearly as practicable, to the respective
amounts  of  securities  that  are proposed to be offered and sold by such other
stockholders  of  such  securities  at  the  time  of  filing  the  registration
statement.  No  Registrable  Securities excluded from the underwriting by reason
of  the  underwriters,  marketing  limitation  shall  be  included  in  such
registration.

                                        7
<PAGE>
     (b)     The  Company  shall  so  advise  all  Holders and the other holders
distributing  their securities through such underwriting of any such limitation,
and  the  number of shares of Registrable Securities held by Holders that may be
included  in  the  registration.  If  any Holder disapproves of the terms of any
such underwriting, such Holder may elect to withdraw therefrom by written notice
to  the  Company  and  the  managing  underwriter.  Any  securities  excluded or
withdrawn  from such underwriting shall be withdrawn from such registration, but
the  Holder  shall  continue  to  be  bound  by  Article  8  hereof.

     (c)     The  Company  shall  have  the  right  to terminate or withdraw any
registration  initiated  by it under this Article 4 prior to the pricing of such
offering,  whether or not a Holder has elected to include Registrable Securities
in  such  registration.

                                    ARTICLE 5
                               HOLDBACK AGREEMENT

     If any Participating Holder notifies the Company that they intend to effect
the  sale  of  Registrable Securities pursuant to Articles 2 or 3 above (each, a
"Sale"),  the  Company  shall  not effect any public sale or distribution of its
  ---
equity  securities,  or  any  securities  convertible  into  or  exchangeable or
  -
exercisable for its equity securities, during the 90-day period beginning on the
  -
date  such  notice of a Sale is received; provided that such notice shall not be
given  by  any  Holder  or Holders more than one time during any 180-day period.

                                    ARTICLE 6
                            EXPENSES OF REGISTRATION

     All  Registration  Expenses  shall  be  borne  by the Company.  All Selling
Expenses  relating  to Registrable Securities registered by the Holders shall be
borne by the Holders of such Registrable Securities pro rata on the basis of the
                                                    --- ----
number  of  shares  so  registered.

                                    ARTICLE 7
                             REGISTRATION PROCEDURES

     (a)     In  the  case of each registration effected by the Company pursuant
to  this  Agreement,  the Company will keep each Holder advised in writing as to
the  initiation  of  the  registration  effected by the Company pursuant to this
Agreement  and as to the completion thereof.  The Company agrees to use its best
efforts  to  effect  or  cause  such  registration  to  permit  the  sale of the
Registrable Securities covered thereby by the Holders thereof in accordance with
the  intended  method  or  methods  of  distribution  thereof  described in such
registration  statement.  In connection with any registration of any Registrable
Securities  pursuant to Articles 2, 3 or 4 hereof, the Company shall, as soon as
reasonably  practicable:

                                        8
<PAGE>
          (i)     prepare  and file with the Commission a registration statement
with respect to such Registrable Securities within the time period prescribed in
Section  2.1(a)  and  use  its best efforts to cause such registration statement
filed  to become effective (provided that before filing a registration statement
or prospectus or any amendments or supplements thereto, the Company shall comply
with  subparagraph  (iii)  of this paragraph (a)) as soon as reasonably possible
thereafter;

          (ii)     prepare  and  file  with  the  Commission such amendments and
supplements  to  such registration statement and the prospectus included therein
as  may  be  necessary  to  effect  and  maintain  the  effectiveness  of  such
registration  statement  as  may  be  required  by  the  applicable  rules  and
regulations  of  the  Commission and the instructions applicable to Form S-3 (or
any  successor  form),  and furnish to the holders of the Registrable Securities
covered  thereby  copies of any such supplement or amendment prior to this being
used  and/or  filed  with  the Commission; and comply with the provisions of the
Securities Act with respect to the disposition of all the Registrable Securities
to  be  included in such registration statement during such period in accordance
with  the  intended  methods  of disposition by the sellers thereof set forth in
such  registration  statement;

          (iii)     provide  (A) the Holders of the Registrable Securities to be
included  in  such registration statement, (B) the underwriters (which term, for
purposes  of  this Agreement, shall include a person deemed to be an underwriter
within the meaning of Section 2(11) of the Securities Act), if any, thereof, (C)
the  sales  or  placement  agent,  if  any,  therefor,  (D) one counsel for such
underwriters  or agent, and (E) not more than one counsel for all the Holders of
such  Registrable  Securities, the opportunity to participate in the preparation
of  such  registration statement, each prospectus included therein or filed with
the  Commission,  and  each  amendment  or  supplement  thereto;

                                        9
<PAGE>
          (iv)     for  a  reasonable  period  prior  to  the  filing  of  such
registration  statement,  and  throughout  the  period  specified  above,  make
available  for  inspection by the parties referred to in Section 6(a)(iii) above
such  financial  and other information and books and records of the Company, and
cause  the  officers,  directors,  employees,  counsel and independent certified
public  accountants  of  the  Company  to respond to such inquiries, as shall be
reasonably  necessary,  in the judgment of the respective counsel referred to in
such Section 6(a)(iii), to conduct a reasonable investigation within the meaning
of the Securities Act; provided, however, that each such party shall be required
to  maintain in confidence and not disclose to any other Person or entity any of
such  information  or records reasonably designated by the Company in writing as
being  confidential, until such time as (a) such information becomes a matter of
public record (whether by virtue of its inclusion in such registration statement
or  otherwise  but not as a result of the disclosure by such party), or (b) such
party shall be required so to disclose such information pursuant to the subpoena
or  order  of any court or other governmental agency or body having jurisdiction
over the matter (in which case such party will provide the Company notice of any
such  requirement so that the Company may seek an appropriate protective order),
or  (c)  such  information  as  is required to be set forth in such registration
statement  or  the  prospectus  included  therein  or  in  an  amendment to such
registration statement or an amendment or supplement to such prospectus in order
that  such  registration  statement, prospectus, amendment or supplement, as the
case  may be, does not include an untrue statement of a material fact or omit to
state therein a material fact required to be stated therein or necessary to make
the  statements  therein not misleading; and provided, further, that the Company
need  not  make  such  information  available,  nor  need  it cause any officer,
director  or  employee  to  respond  to such inquiry, unless each such Holder of
Registrable Securities and such counsel, upon the Company's request, execute and
deliver to the Company an undertaking to substantially the same effect contained
in  the second preceding proviso in form reasonably satisfactory to the Company;

          (v)     promptly  notify  the  Holders  of Registrable Securities, the
sales  or  placement agent, if any, therefor and the managing underwriter of the
securities  being  sold  and  confirm  such  advice  in  writing,  (A) when such
registration  statement  or  the  prospectus  included therein or any prospectus
amendment  or  supplement  or post-effective amendment has been filed, and, with
respect to such registration statement or any post-effective amendment, when the
same has become effective, (B) of any comments by the Commission and by the blue
sky or securities commissioner or regulator of any state with respect thereto or
any request by the Commission for amendments or supplements to such registration
statement  or  the prospectus or for additional information, (C) of the issuance
by  the  Commission  of  any  stop  order  suspending  the effectiveness of such
registration  statement  or  the initiation of any proceedings for that purpose,
(D)  of  the  receipt  by  the  Company  of any notification with respect to the
suspension  of  the  qualification of the Registrable Securities for sale in any
jurisdiction  or  the  initiation  or  threatening  of  any  proceeding for such
purpose,  or  (E)  if  it  shall  be  the case, at any time when a prospectus is
required  to  be  delivered  under  the  Securities  Act, that such registration
statement,  prospectus,  or any document incorporated by reference in any of the
foregoing  contains an untrue statement of a material fact or omits to state any
material  fact required to be stated therein or necessary to make the statements
therein  not  misleading  in  light  of  the  circumstances  then  existing;

          (vi)     use  its  best  efforts to obtain the withdrawal of any order
suspending  the  effectiveness  of  such  registration  statement  or  any
post-effective  amendment  thereto  or of any order suspending or preventing the
use of any related prospectus or suspending the qualification of any Registrable
Securities  included in such registration statement for sale in any jurisdiction
at  the  earliest  practicable  date;

          (vii)     if requested by any managing underwriter or underwriter, any
placement  or  sales  agent  or  any  Holder of Registrable Securities, promptly
incorporate  in  a prospectus, prospectus supplement or post-effective amendment
such  information  as is required by the applicable rules and regulations of the
Commission  and as such managing underwriter or underwriters, such agent or such
Holder  may  reasonably specify should be included therein relating to the terms
of  the  sale  of  the  Registrable  Securities  included thereunder, including,
without  limitation,  information  with  respect  to  the  number of Registrable
Securities  being sold by such Holder or agent or to such underwriters, the name
and  description  of  such  Holder,  the  offering  price  of  such  Registrable
Securities and any discount, commission or other compensation payable in respect
thereof,  the  purchase  price being paid therefor by such underwriters and with
respect  to  any other terms of the offering of the Registrable Securities to be
sold  in  such  offering;  and  make  all  required  filings of such prospectus;
prospectus  supplement  or post--effective amendment promptly after notification
of  the  matters to be incorporated in such prospectus, prospectus supplement or
post-effective  amendment;

                                       10
<PAGE>
          (viii)     furnish  to  each  Holder  of  Registrable Securities, each
placement  or  sales  agent, if any, therefor, each underwriter, if any, thereof
and  the  counsel  referred  to  in  Section  4(a)(iii) an executed copy of such
registration statement, each such amendment and supplement thereto (in each case
excluding  all exhibits and documents incorporated by reference) and such number
of  copies  of  the  registration  statement  (excluding  exhibits  thereto  and
documents  incorporated by reference therein unless specifically so requested by
such  holder,  agent  or  underwriter,  as  the  case  may be) of the prospectus
included  in  such registration statement (including each preliminary prospectus
and  any  summary  prospectus),  in  conformity  with  the  requirements  of the
Securities  Act,  as  such  Holder,  agent, if any, and underwriter, if any, may
reasonably  request  in  order  to facilitate the disposition of the Registrable
Securities  owned  by  such  Holder  sold  by such agent or underwritten by such
underwriter  and  to  permit  such  Holder, agent and underwriter to satisfy the
prospectus  delivery  requirements of the Securities Act; and the Company hereby
consents  to  the use of such prospectus and any amendment or supplement thereto
by  each  such Holder and by any such agent and underwriter, in each case in the
form most recently provided to such party by the Company, in connection with the
offering  and  sale  of  the  Registrable  Securities  covered by the prospectus
(including  such  preliminary  and  summary  prospectus)  or  any  supplement or
amendment  thereto;

          (ix)     use  its  best  efforts  to  (A)  register  or  qualify  the
Registrable Securities under such other securities laws or blue sky laws of such
jurisdictions  to  be  designated  by  the  Holders  of  a Supermajority of such
Registrable  Securities  and each placement or sales agent, if any, therefor and
underwriter,  if  any,  thereof,  as any Holder and each underwriter, if any, of
the  securities being sold shall reasonably request, (B) keep such registrations
or  qualifications  in  effect  and  comply  with  such laws so as to permit the
continuance  of  offers, sales and dealings therein in such jurisdictions for so
long as may be necessary to enable such Holder, agent or underwriter to complete
its  distribution  of  the  Registrable Securities pursuant to such registration
statement  and  (C) take any and all such actions as may be reasonably necessary
or advisable to enable such Holder, agent, if any, and underwriter to consummate
the  disposition in such jurisdictions of such Registrable Securities; provided,
however, that the Company shall not be required for any such purpose to (1) take
any  action  to effect any such registration, qualification or compliance in any
particular jurisdiction in which it would not otherwise be required to execute a
general  consent  to  service  of  process  in  effectuating  such registration,
qualification  or compliance, but for the requirements of this Section 7(a)(ix),
or  (2)  subject  itself  to  taxation  in  any  such  jurisdiction;

          (x)     cooperate  with  the Holders of the Registrable Securities and
the  managing  underwriters to facilitate the timely preparation and delivery of
certificates  representing Registrable Securities to be sold, which certificates
shall  be  printed,  lithographed or engraved, or produced by any combination of
such methods, on steel engraved borders and which shall not bear any restrictive
legends;  and enable such Registrable Securities to be in such denominations and
registered  in  such names as the managing underwriters may request at least two
business  days  prior  to  any  sale  of  the  Registrable  Securities;

                                       11
<PAGE>
          (xi)     obtain  a  CUSIP  number  for all Registrable Securities, not
later  than  the  effective  date  of  the  registration  statement;

          (xii)     use  its best efforts to enter into one or more underwriting
agreements,  engagement  letters, agency agreements, "best efforts" underwriting
agreements or similar agreements, as appropriate, and take such other actions in
connection  therewith  as  the  Holders  of  at  least  a  Supermajority  of the
Registrable  Securities being sold shall reasonably request in order to expedite
or  facilitate  the  disposition  of  such  Registrable  Securities;

                                       12
<PAGE>
          (xiii)     whether  or not an agreement of the type referred to in the
preceding  subsection  is  entered  into  and  whether or not any portion of the
offering contemplated by such registration statement is an underwritten offering
or  is made trough a placement or sales agent or any other entity, (A) make such
representations and warranties to the Holders of such Registrable Securities and
the  placement  or  sales  agent, if any, therefor and the underwriters, if any,
thereof  in form, substance and scope as are customarily made in connection with
any  offering  or equity securities pursuant to any appropriate agreement and/or
to  a  registration  statement filed on the form applicable to such registration
statement; (B) obtain an opinion of counsel to the Company in customary form and
covering  such  matters,  of the type customarily covered by such an opinion, as
the  managing  underwriters,  if  any,  and  as  the  Holders  of  at  least  a
Supermajority  of  such Registrable Securities may reasonably request, addressed
to  such  Holders  and  the  placement  or sales agent, if any, therefor and the
underwriters,  if any, thereof and dated the effective date of such registration
statement  (and  if  such  registration  statement  contemplates an underwritten
offering  of  a party or of all of the Registrable Securities, dated the date of
the  closing under the underwriting agreement relating thereto) (it being agreed
that  the  matters  to  be  covered  by  such  opinion  shall  include,  without
limitation,  the  due organization of the Company, and its subsidiaries, if any;
the  qualification  of  the  Company,  and its subsidiaries, if any, to transact
business  as foreign companies; the due authorization, execution and delivery of
this  Agreement  and  of  any  agreement  of  the  typed  referred to in Section
7(a)(xii)  hereof;  the  due  authorization,  valid issuance, and the fully paid
status  of  the  capital  stock  of  the  Company;  the absence of (governmental
approvals required to be obtained in connection with the registration statement,
the  offering  and  sale  of  the  Registrable Securities, this Agreement or any
agreement  of  the type referred to in Section 7(a)(xii.) hereof; the compliance
as  to  form  of  such  registration statement and any documents incorporated by
reference therein with the requirements of the Securities Act; the effectiveness
of  such registration statement under the Securities Act; and, as of the date of
the  opinion  and  of  the  registration statement or most recent post-effective
amendment  thereto,  as  the  case may be, the absence, to the knowledge of such
counsel,  from  such registration statement and the prospectus included therein,
as  then  amended  or  supplemented,  and  from  the  documents  incorporated by
reference  therein  of an untrue statement of a material fact or the omission to
state  therein  a  material  fact  necessary  to make the statements therein not
misleading  (in  case  of  such  documents,  in  the  light of the circumstances
existing  at  the  time that such documents were filed with the Commission under
the  Exchange  Act));  (C)  obtain  a  "cold" comfort letter or letters from the
independent certified public accountants of the Company addressed to the Holders
and the placement or sales agent, if any, therefor and the underwriters, if any,
thereof,  dated  (I)  the effective date of such registration statement and (II)
the  effective  date  of any Prospectus supplement to the prospectus included in
such  Registration  statement  or  post-effective amendment to such registration
statement  which includes unaudited or audited financial statements as of a date
or  for  a  period  subsequent to that of the latest such statements included in
such  prospectus  (and,  if  such  registration  statement  contemplates  an
underwritten  offering  pursuant  to any prospectus supplement to the prospectus
included  in  such  registration  statement  or post-effective amendment to such
registration  statement which includes unaudited or audited financial statements
as  of  a  date or for a period subsequent to that of the latest such statements
included  in  such  prospectus,  dated  the  date  of  the  closing  under  the
underwriting  agreement  relating  thereto),  such  letter  or  letters to be in
customary  form  and  covering  such  matters of the type customarily covered by
letters  of  such  type;  (D) deliver such documents and certificates, including
officers'  certificates, as may be reasonably requested by Holders of at least a
Supermajority  of  the  Registrable  Securities  being sold and the placement or
sales  agent, if any, therefor and the managing underwriters, if any, thereof to
evidence  the  accuracy  of  the representations and warranties made pursuant to
clause  (A)  above  and the compliance with or satisfaction of any agreements or
conditions  contained  in  the underwriting agreement or other agreement entered
into  by  the  Company;  and  (E) undertake such obligations relating to expense
reimbursement,  indemnification  and  contribution as are provided in, Article 6
and  8  hereof;

          (xiv)     notify  in  writing each Holder of Registrable Securities of
any  proposal  by  the Company to amend or waive any provision of this Agreement
and  of any amendment or waiver effected pursuant thereto, each of which notices
shall  contain  the text of the amendment or waiver proposed or effected, as the
case  may  be;

          (xv)     engage  to  act  on behalf of the Company with respect to the
Registrable Securities to be so registered a registrar and transfer agent having
such duties and responsibilities (including, without limitation, registration of
transfers  and  maintenance of stock registers) as are customarily discharged by
such  an  agent, and to enter into such agreements and to offer such indemnities
as  are  customary  in  respect  thereof;

          (xvi)     otherwise use its best efforts to comply with all applicable
rules  and  regulations of the Commission, and make available to its Holders, as
soon  as  practicable,  but  in  any  event  not  later than 18 months after the
effective  date of such registration statement, an earnings statement covering a
period  of  at least twelve months which shall satisfy the provisions of Section
6(a) of the Securities Act (including, at the option of the Company, pursuant to
Rule  158  thereunder);  and

                                       13
<PAGE>
          (xvii)     cause  all such Registrable Securities to be listed on each
securities  exchange,  over-the-counter  market or on the Nasdaq National Market
("Nasdaq  Market")  on  which  similar securities issued by the Company are then
  --------------
listed  and, if not so listed, to be listed and, if listed on the Nasdaq Market,
  -
use  its  best  efforts to secure designation of all such Registrable Securities
covered  by  such  registration  statement  as  a Nasdaq "national market system
security" within the meaning of Rule llAa2-1 of the Commission or, failing that,
to  secure  Nasdaq  Market  authorization  for  such Registrable Securities and,
without  limiting  the  generality of the foregoing, to arrange for at least two
market  makers  to  register as such with respect to such Registrable Securities
with  the  National  Association  of  Securities  Dealers.

     (b)     In  the  event  that  the  Company  would  be required, pursuant to
Section  7(a)(v)(E)  above,  to  notify  the  Holders  of Registrable Securities
included in a registration statement hereunder, the sales or placement agent, if
any,  and  the  managing underwriters, if any, of the securities being sold, the
Company  shall  prepare  and furnish to each such Holder, to each such agent, if
any,  and  to  each  underwriter,  if  any,  a  reasonable number of copies of a
prospectus  supplement  or  amendment  so  that,  as thereafter delivered to the
purchasers  of  Registrable  Securities,  such  prospectus  shall not contain an
untrue statement of a material fact or omit to state a material fact required to
be  stated therein or necessary to make the statements therein not misleading in
light  of the circumstances then existing.  Each Holder agrees that upon receipt
of  any  notice  from  the  Company  pursuant to Section 7(a)(v)(E) hereof, such
Holder  shall  forthwith  discontinue the distribution of Registrable Securities
until  such  Holder  shall  have received copies of such amended or supplemented
registration  statement  or  prospectus, and if so directed by the Company, such
Holder shall deliver to the Company (at the Company's expense) all copies, other
than  permanent  file copies, then in such Holder's possession of the prospectus
covering  such  Registrable  Securities  at  the time of receipt of such notice.

     (c)     The Company may require each Holder of Registrable Securities as to
which  any  registration  is  being  effected  to  furnish  to  the Company such
information  regarding  such  Holder and such Holder's method of distribution of
such  Registrable  Securities  as  the  Company may from time to time reasonably
request  in  writing but only to the extent that such information is required in
order  to comply with the Securities Act.  Each such Holder agrees to notify the
Company  as  promptly  as practicable of any inaccuracy or change in information
previously  furnished  by such Holder to the Company or of the occurrence of any
event  in  either  case  as  a  result  of which any prospectus relating to such
registration  contains  or  would contain an untrue statement of a material fact
regarding  such  Holder  or  the  distribution of such Registrable Securities or
omits  to  state  any material fact regarding such Holder or the distribution of
such  Registrable  Securities required to be stated therein or necessary to make
the  statements  therein  not  misleading  in  light  of  the circumstances then
existing,  and  promptly  to  furnish  to the Company any additional information
required  to correct and update any previously furnished information or required
so  that  such  Prospectus shall not contain, with respect to such Holder or the
distribution  of  such Registrable Securities, an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading in light of the circumstances then
existing.

                                    ARTICLE 8
                                 INDEMNIFICATION

                                       14
<PAGE>
     8.1     The  Company  will  indemnify each Holder, each of its Officers and
directors  and partners, and each person controlling any such persons within the
meaning  of Section 15 of the Securities Act, with respect to which registration
of  any of the Registrable Securities under the Securities Act has been effected
pursuant  to  this  Agreement, and each underwriter, if any, and each person who
controls any underwriter within the meaning of Section 15 of the Securities Act,
against  all  expenses,  claims,  losses, damages and liabilities (or actions in
respect  thereof),  including any of the foregoing incurred in settlement of any
litigation,  commenced  or  threatened,  arising  out  of or based on any untrue
statement  (or  alleged  untrue  statement)  of a material fact contained in any
registration  statement, prospectus, offering circular or other document, or any
amendment or supplement thereof, incident to any such registration of any of the
Registrable Securities under the Securities Act which has been effected pursuant
to  this  Agreement,  or  based  on  any omission (or alleged omission) to state
therein,  a material fact required to be stated therein or necessary to make the
statements  therein, not misleading, or any violation by the Company of any rule
or  regulation promulgated under the Securities Act or any state securities laws
applicable  to  the Company and relating to action or inaction by the Company in
connection  with  any  such  Registration, qualification or compliance, and will
reimburse each such Holder, each of its officers and directors and partners, and
each  person controlling any such persons, each such Underwriter and each person
who  controls  any  such  underwriter,  for  any  legal  and  any other expenses
reasonably incurred in connection with investigating, preparing or defending any
such  claim,  loss,  damage,  liability  or  action; provided, however, that the
                                                     --------  -------
Company  will  not be liable in any such case to the extent that any such claim,
loss,  damage,  liability  or  expense  arises  out of or is based on any untrue
statement  or omission or alleged untrue statement or omission, made in reliance
upon and in conformity with written information furnished to the Company by such
Holder  or  underwriter  and  expressly  intended  for  use in such registration
statement, prospectus, offering circular or other, document, or any amendment or
supplement  thereof.

                                       15
<PAGE>
     8.2     Each Holder will, if Registrable Securities held by such Holder are
included  in  the  securities  as  to which such registration is being effected,
severally  and not jointly, indemnify and hold harmless the Company, each of its
directors  and  officers,  each underwriter, if any, of the Company's securities
covered  by  such a registration statement, each person who controls the Company
or  such underwriter within the meaning of Section 15 of the Securities Act, and
each  other  such  Holder,  each  of its officers, directors, partners, and each
person  controlling  such  Holder  within  the  meaning  of  Section  15  of the
Securities  Act,  against  all expenses, claims, losses, damages and liabilities
(or actions in respect thereof), to which the Company or such officer, director,
underwriter  or  person who controls the Company or such underwriter, within the
meaning  of  Section  15  of  the Securities Act, including any of the foregoing
incurred  in  settlement of any litigation, commenced or threatened, arising out
of  or based on any untrue statement (or alleged untrue statement) of a material
fact contained in any such registration statement, prospectus, offering circular
or  other document, or any amendment or supplement thereto, incident to any such
registration,  qualification  or compliance or based on any omission (or alleged
omission)  to  state  therein  a  material fact required to be stated therein or
necessary  to make the statements therein not misleading, and will reimburse the
Company,  such  Holders,  such  directors,  officers,  partners, underwriters or
control  persons  for  any  legal  or  any other expenses reasonably incurred in
connection  with  investigating,  preparing  or  defending any such claim, loss,
damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement (or alleged untrue statement) or omission (or alleged
omission),  made  in such registration statement, prospectus, offering circular,
other  document  or  amendment  or supplement in reliance upon and in conformity
with  written  information furnished to the Company by such Holder and expressly
intended  for  use in such registration statement, prospectus, offering circular
or  other  document,  or any amendment or supplement thereof; provided, however,
                                                              --------  -------
that  the  obligations  of  each  Holder hereunder shall be limited to an amount
equal  to  the  proceeds  to  such  Holder  of  Registrable  Securities  sold as
contemplated  herein.

     8.3     Each  party  entitled  to indemnification under this Section 5 (the
"Indemnified  Party")  shall  give  notice  to  the  party  required  to provide
  -----------------
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
  ------              ------------------
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit  the  Indemnifying  Party  to assume the defense of any such claim or any
litigation  resulting  therefrom,  provided  that  counsel  for the Indemnifying
Party,  who  shall  conduct  the  defense  of such claim or litigation, shall be
approved  by  the  Indemnified  Party  (whose approval shall not unreasonably be
withheld).  The  Indemnified  Party  may  participate  in  such  defense at such
party's  expense;  provided, however, that the Indemnifying Party shall bear the
expense  of  such  defense  of  the  Indemnified Party if representation of both
parties  by  the  same counsel would be inappropriate due to actual or potential
conflicts  of  interest.  The failure of any Indemnified Party to give notice as
provided  herein  shall  not  relieve  the Indemnifying Party of its obligations
under  this  Agreement, unless such failure is prejudicial to the ability of the
Indemnifying  Party to defend the action.  No Indemnifying Party, in the defense
of  any  such  claim  or  litigation,  shall,  except  with  the consent of each
Indemnified  Party  not  to  be  unreasonably  withheld, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term  thereof  the giving by the claimant or plaintiff to such Indemnified Party
of  a  release  from  all  liability  in  respect  of  such claim or litigation.

                                       16
<PAGE>
     8.4     If  the  indemnification  provided  for  in  Section  8.1 or 8.2 is
unavailable  or  insufficient  to  hold harmless an Indemnified Party, then each
Indemnifying  Party  shall  contribute  to  the  amount  paid or payable by such
Indemnified  Party  as  a  result  of  the  expenses, claims, losses, damages or
liabilities  (actions  or proceedings in respect thereof) referred to in Section
8.1  or  8.2, in such proportion as is appropriate to reflect the relative fault
of  the Company on the one hand and the sellers of Registrable Securities on the
other  hand  in  connection  with statements or omissions which resulted in such
losses,  claims,  damages  or  liabilities (or actions or proceedings in respect
thereof)  or  expenses,  as well as any other relevant equitable considerations.
The  relative  fault  shall  be  determined by reference to, among other things,
whether  the  untrue  or  alleged  untrue  statement  of  a material fact or the
omission  or  alleged  omission  to state a material fact relates to information
supplied  by  the  Company  or  the  sellers  of  Registrable Securities and the
parties,  relative  intent,  knowledge, access to information and opportunity to
correct  or  prevent  such  untrue  statement  or omission.  The Company and the
Holders  agree that it would not be just and equitable if contributions pursuant
to  this  Section  8.4 were to be determined by pro rata allocation (even if all
Sellers  of  Registrable Securities were treated as one entity for such purpose)
or  by  any  other  method  of  allocation  which  does  not take account of the
equitable  considerations referred to in the first sentence of this Section 8.4.
The  amount  paid  by  an Indemnified Party as a result of the expenses, claims,
losses,  damages  or  liabilities (or actions or proceedings in respect thereof)
referred to in the first sentence of this Section 8.4 shall be deemed to include
any  legal  or  other  expenses reasonably incurred by such Indemnified Party in
connection with investigating or defending any claim, action or proceeding which
is  the  subject  of  this  Section  8.4.  No  person  guilty  of  fraudulent
misrepresentation  (within  the  meaning of Section 11(f) of the Securities Act)
shall  be  entitled  to  contribution from any Person who was not guilty of such
fraudulent  misrepresentation.  The  obligations  of  sellers  of  Registrable
Securities  to  Contribute  pursuant  to  this  Section  8.4 shall be several in
Proportion  to  the  respective  amount  of  Registrable Securities sold by them
pursuant  to  a  registration  statement.

                                    ARTICLE 9
                               RULE 144 REPORTING

     With  a  view  to  making  available  the  benefits  of  certain  rules and
regulations  of  the  Commission  which  may  at  any  time  permit  the sale of
securities of the Company to the public without registration, the Company agrees
use  its  best  efforts  to:

     9.1     Make  and  keep  public  information  available  as those terms are
understood  and  defined in Rule 144 under the Securities Act (or any similar or
analogous  rule  promulgated  under  the  Securities  Act);  and

     9.2     File  with the Commission in a timely manner all reports, and other
documents  required of the Company under the Securities Act and the Exchange Act
and  make  available  the  benefits  of  Rule  144;  and

     9.3     So  long  as any Holder owns any Registrable Securities, furnish to
such  Holder forthwith upon request a written statement by the Company as to its
compliance  with  the  public  information  requirements  of  said Rule 144, the
Securities  Act  and  the  Exchange  Act,  a  copy  of the most recent annual or
quarterly  report  of  the  Company, and such other reports and documents of the
Company  as such Holder may reasonably request in availing itself of any rule or
regulation  of  the  Commission  allowing it to sell any such securities without
registration.

                                   ARTICLE 10

                         TRANSFER OF REGISTRATION RIGHTS

     The  rights to cause the Company to register Registrable Securities granted
Holders  under Articles 2, 3 and 4 hereof may be assigned in connection with any
permitted  transfer  or  assignment of the Holder's Registrable Securities.  All
transferees  and  assignees  of  the  rights  to  cause  the Company to register
Registrable  Securities  granted  Holders under Articles 2, 3 and 4 hereof, as a
condition  to the transfer of such rights, shall agree in writing to be bound by
the  agreements  set  forth  herein.

                                   ARTICLE 11
                       LIMITATIONS ON REGISTRATION RIGHTS
                           GRANTED TO OTHER SECURITIES

     The  parties  hereto agree that additional holders may, with the consent of
the  Company  and  the  Holders of a Supermajority of the Registrable Securities
then  outstanding,  be added as parties to this Agreement with respect to any or
all  securities  of  the  Company held by them; provided, however, that from and
                                                --------  -------
after  the  date  of  this  Agreement,  the  Company shall not without the prior
written consent of the Holders of a Supermajority of the Registrable  Securities
then outstanding, enter into any agreement with any holder or prospective holder
of  any  securities  of  the  Company  providing for the grant to such holder of
registration  rights superior to, or pari passu with, those granted herein.  Any
                                     ---- -----
additional  parties  shall  execute  a  counterpart  of this Agreement, and upon
execution  by  such  additional  parties and by the Company, shall be considered
Holders  for  purposes  of this Agreement, and shall be added to the Schedule of
Registration  Rights  Holders.

                                       17
<PAGE>
                                   ARTICLE 12
                                  MISCELLANEOUS

     12.1     GOVERNING  LAW.  THIS  AGREEMENT  SHALL  BE  GOVERNED  BY  AND
              ---------
CONSTRUED  IN  ACCORDANCE  WITH  THE  LAWS  OF  THE  STATE  OF  NEW  YORK
APPLICABLE  TO  CONTRACTS  MADE  AND  TO  BE  PERFORMED  ENTIRELY  WITHIN
THE  STATE  WITHOUT  REGARD  TO  PRINCIPLES  OF  CONFLICTS  OF  LAW.

     12.2     WAIVER OF JURY TRIAL.  EACH PARTY TO THIS AGREEMENT HEREBY WAIVES,
              --------------------
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND,  ACTION,  OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN
ANY  WAY  CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO  IN  RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY, OR OTHERWISE.  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES
AND CONSENTS THAT ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN
ORIGINAL  COUNTERPART  OF  A  COPY  OF  THIS AGREEMENT WITH ANY COURT AS WRITTEN
EVIDENCE  OF  THE  CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL  BY  JURY.

     12.3     Successors  and  Assigns.  Except  as otherwise expressly provided
              ------------------------
herein,  the  provisions  hereof  shall  inure to the benefit of, and be binding
upon,  the  successors,  assigns,  heirs,  executors  and  administrators of the
parties  hereto.

     12.4     Entire Agreement.  This Agreement constitutes the full arid entire
              ----------------
understanding  and  agreement  between  the  parties  with regard to the subject
matter  hereof.  Any  provision  of  this  Agreement  may  be amended, waived or
modified, and this Agreement may be terminated, if, but only if, such amendment,
waiver or modification or termination is in writing and is signed by the Company
and  the  holders of a Supermajority of the Registrable Securities; whenever any
provision  of  this  Agreement  requires  action or approval by the holders of a
specified  number  of  Registrable  Securities,  such  action or approval may be
evidenced  by a written consent executed by the requisite holders of Registrable
Securities,  without  any  requirement of a meeting or prior notice to the other
holders  of  such  shares.

     12.5     Notices.  All  notices,  requests,  consents,  and  other
              -------
communications  hereunder  shall  be  in writing and shall be deemed effectively
given  and received upon delivery in person, or two business days after delivery
by  national  overnight  courier  service  or  by  telecopier  transmission with
acknowledgment  of transmission receipt, or five business days after deposit via
certified  or  registered mail, return receipt requested, in each case addressed
as  follows:

                                       18
<PAGE>
if  to  the  Company:

     Pointe  Communications  Corporation
     1325  Northmeadow  Parkway,  Suite  110
     Roswell,  GA  30076
     Attention:  Stephen  E.  Raville
     Facsimile:  (707)319-2834

with  a  copy  to  (which  shall  not  constitute  notice):

     Gardere  &  Wynne,  L.L.P.
     3000  Thanksgiving  Tower
     1601  Elm  Street
     Dallas,  Texas  75201-4761
     Attention:  W.  Robert  Dyer,  Jr.
     Facsimile:  (214)  999-3574

if  to  TSG:

     TSG  Capital  Fund  III,  L.P.
     177  Broad  Street,  12th  Floor
     Stamford,  CT  06901
     Attention:  Darryl  B.  Thompson
     Facsimile:  (203)  406-1590

with  copy  to  (which  shall  not  constitute  notice):

     Mayer,  Brown  &  Platt
     1675  Broadway
     New  York,  NY  10019
     Attention:  Kathleen  A.  Walsh
     Facsimile:  (212)  262-1910

if  to  OCP  II:

     Opportunity  Capital  Partners  II,  L.P.
     2201  Walnut  Avenue,  Suite  210
     Fremont,  California  94538
     Attention:  Lewis  E.  Byrd
     Facsimile:  (510)  494-5439

with  a  copy  to  (which  shall  not  constitute  notice):

     Folger  Levin  &  Kahn,  L.L.P.
     Embarcadero  Center  West
     275  Battery  Street,  23rd  Floor
     San  Francisco,  California  94111
     Attention:  Christopher  Conner,  Esq.
     Facsimile:  (415)  986-2827

if  to  OCP  III:

     Opportunity  Capital  Partners  III,  L.P.
     2201  Walnut  Avenue,  Suite  210
     Fremont,  California  94538
     Attention:  Lewis  E.  Byrd
     Facsimile:  (510)  494-5439

                                       19
<PAGE>
with  a  copy  to  (which  shall  not  constitute  notice):

     Folger  Levin  &  Kahn,  L.L.P.
     Embarcadero  Center  West
     275  Battery  Street,  23rd  Floor
     San  Francisco,  California  94111
     Attention:  Christopher  Conner,  Esq.
     Facsimile:  (415)  986-2827

or,  in  any  such  case,  at such other address or addresses as shall have been
furnished  in  writing  by  such  party  to  the  others.

     12.6     Severability.  In  case  any  provision of this Agreement shall be
              ------------
invalid,  illegal or unenforceable, the validity, legality and enforceability of
the  remaining  provisions of this Agreement shall not in any way be affected or
impaired  thereby.

     12.7     Titles  and Subtitles.  The titles of the sections and subsections
              ---------------------
of  this  Agreement  are  for  convenience  of  reference only and are not to be
considered  in  construing  this  Agreement.

     12.8     Counterparts.  This  Agreement  may  be  executed in any number of
              ------------
counterparts,  each  of  which  shall  be an original, but all of which together
constitute  one  instrument.  Facsimile  transmission  of  any  signed  original
document  and/or  retransmission  of  any  signed facsimile transmission will be
deemed  the  same  as delivery of an original.  At the request of any party, the
parties  will  confirm  facsimile  transmission  by signing a duplicate original
document.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       20
<PAGE>
     IN WITNESS WHEREOF, the parties have executed this Agreement as of the 31st
day  of  December,  1999.

                         POINTE  COMMUNICATIONS  CORPORATION,
                         a  Nevada  corporation

                         By:_______________________________________
                         Name:_____________________________________
                         Title:______________________________________

                         TSG  CAPITAL  FUND  III,  L.P.,
                         a  Delaware  limited  partnership

                         By:  TSG  Associates  III,  L.L.C.,
                              Its  General  Partner

                              By:___________________________
                              Name:_________________________
                              Title:__________________________

                         OPPORTUNITY  CAPITAL  PARTNERS  II,  L.P.,
                         a  Delaware  limited  partnership

                         By:  Thompson  Capital  Management,  L.P.
                              Its  General  Partner

                         By:___________________________
                              Lewis  E.  Byrd
                              Partner

                         OPPORTUNITY  CAPITAL  PARTNERS  III,  L.P.,
                         a  Delaware  limited  partnership

                         By:  JM  Capital  Management,  L.P.
                              Its  General  Partner

                              By:___________________________
                                   Lewis  E.  Byrd
                                   General  Partner

                                       21
<PAGE>

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