Document:

THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUED UPON ANY EXERCISE HEREOF HAVE
      NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”),
      OR
      ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
      TRANSFERRED TO ANY PERSON, INCLUDING A PLEDGEE, UNLESS (i) EITHER (A) A
      REGISTRATION STATEMENT WITH RESPECT THERETO SHALL BE EFFECTIVE UNDER THE
      SECURITIES ACT, OR (B) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL
      SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE
      SECURITIES ACT IS AVAILABLE, AND (ii) THERE SHALL HAVE BEEN COMPLIANCE WITH
      ALL
      APPLICABLE STATE SECURITIES OR “BLUE-SKY” LAWS.

     

    
      	
              No.
                ______________

            	
              For
                the Purchase

            
	 	
              of
                up to 50,000 shares

            
	 	
              of
                Common Stock

            

    

    

     

    WARRANT
      TO PURCHASE 

     

    COMMON
      STOCK

     

    OF

     

    U.S.
      WIRELESS DATA, INC.

    

    (A
      DELAWARE CORPORATION)

     

    U.S.
      Wireless Data, Inc., a Delaware corporation (the “Company”),
      for
      value received, the sufficiency of which is hereby acknowledged, certifies
      that
      David Goddard, or his, her or its permitted assigns (the “Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company,
      at
      any time or from time to time at or before the earlier of 5:00 p.m. New York
      City local time on February 13, 2008 (the “Expiration
      Date”)
      and
      the termination of this Warrant as provided in Section 7 hereof, up to 50,000
      shares of common stock, par value $0.01 per share, of the Company (“Common
      Stock”),
      at a
      purchase price per share equal to $1.00 per share (the “Base
      Price”),
      as
      adjusted upon the occurrence of certain events as set forth in Section 2 of
      this
      Warrant. The shares of Common Stock issuable upon exercise of this Warrant,
      and
      the purchase price per share, are hereinafter referred to as “Warrant
      Stock”
and
      the
“Purchase
      Price,”
      respectively. 

     

    1. Exercise.

     

    1.1 Manner
      of Exercise; Payment in Cash.
      This
      Warrant may be exercised by the Holder, in whole or in part, by surrendering
      this Warrant, with the purchase form appended hereto as Exhibit
      A
      duly
      executed by the Holder, at the principal office of the Company, or at such
      other
      place as the Company may designate, accompanied by payment in full of the
      Purchase Price payable in respect of the number of shares of Warrant Stock
      purchased upon such exercise. Payment of the Purchase Price shall be in cash
      or
      by certified or official bank check payable to the order of the
      Company.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    1.2 Effectiveness.
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which this Warrant shall have been
      surrendered to the Company as provided in Section 1.1 above. At such time,
      the
      person or persons in whose name or names any certificates for Warrant Stock
      shall be issuable upon such exercise as provided in Section 1.3 below shall
      be
      deemed to have become the holder or holders of record of the Warrant Stock
      represented by such certificates.

     

    1.3. Delivery
      of Certificate(s).
      As soon
      as practicable after the exercise of this Warrant in full or in part, and in
      any
      event within three (3) business days thereafter, the Company, at its sole
      expense, will cause to be issued in the name of, and delivered to, the Holder,
      or, subject to the terms and conditions hereof, as such Holder (upon payment
      by
      such Holder of any applicable transfer taxes) may direct:

     

    (a) A
      certificate or certificates for the number of full shares of Warrant Stock
      to
      which such Holder shall be entitled upon such exercise, plus, in lieu of any
      fractional share to which such Holder would otherwise be entitled, cash in
      an
      amount determined pursuant to Section 1.4 hereof, and

     

    (b) In
      case
      such exercise is in part only, a new warrant or warrants (dated the date hereof)
      of like tenor, calling in the aggregate on the face or faces thereof for the
      number of shares of Warrant Stock (without giving effect to any adjustment
      therein) equal to the number of such shares called for on the face of this
      Warrant minus the number of such shares purchased by the Holder upon such
      exercise as provided in Section 1.1 above.

     

    1.4. Fractional
      Shares.
      The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, but shall make an adjustment therefor in cash on the basis
      of
      the fair market value of the Warrant Stock reasonably determined by the Board
      of
      Directors of the Company (and, in the case of a conversion of this Warrant,
      in
      accordance with Section 1.5(c)).

     

    1.5 Right
      to Convert Warrant into Stock; Net Issuance.

    

    (a) Right
      to Convert.
      Subject
      to Section 7, in addition to and without limiting the rights of the Holder
      under
      the terms of this Warrant, the Holder shall have the right to convert this
      Warrant or any portion thereof (the “Conversion
      Right”)
      into
      shares of Warrant Stock as provided in this Section 1.5 at any time or from
      time
      to time during the term of this Warrant. Upon exercise of the Conversion Right
      with respect to a particular number of shares subject to this Warrant (the
      “Converted
      Warrant Shares”),
      the
      Company shall deliver to the Holder (without payment by the Holder of any
      Purchase Price or any cash or other consideration) that number of shares of
      fully paid and nonassessable Warrant Stock equal to the quotient obtained by
      dividing (X) the value of this Warrant (or the specified portion hereof) on
      the
      Conversion Date (as defined in subsection (b) hereof), which value shall be
      determined by subtracting (A) the aggregate Purchase Price of the Converted
      Warrant Shares immediately prior to the exercise of the Conversion Right from
      (B) the aggregate fair market value of the Converted Warrant Shares issuable
      upon exercise of this Warrant (or the specified portion hereof) on the
      Conversion Date (as herein defined) by (Y) the fair market value of one share
      of
      Warrant Stock on the Conversion Date (as herein defined).

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    Expressed
      as a formula, such conversion shall be computed as follows:

    

      
        	
                N

              	
                =

              	
                 B-A

              
	
                 

              	 	
                Y

              

      

    

       

        
          	
                  where:
                    

                	
                  N
                    

                	
                  =
                    

                	
                  the
                    number of shares of Warrant Stock that may be issued to
                    Holder

                
	 	 	 	 
	
                   

                	
                  Y
                    

                	
                  =

                	
                  the
                    fair market value (FMV) of one share of Warrant Stock

                
	 	 	 	 
	
                   

                	
                  
                    A

                  

                	
                  
                    =
                      

                  

                	
                  the
                    aggregate Warrant Price (Converted Warrant Shares x Purchase
                    Price)

                
	 	 	 	 
	
                   

                	
                  B 

                	
                  
                    =
                      

                  

                	
                  the
                    aggregate FMV (i.e., FMV x Converted Warrant
                    Shares)

                

        

      

    No
      fractional shares shall be issuable upon exercise of the Conversion Right,
      and,
      if the number of shares to be issued determined in accordance with the foregoing
      formula is other than a whole number, the Company shall pay to the Holder an
      amount in cash equal to the fair market value of the resulting fractional share
      of the Conversation Date (as herein defined).

    

    (b) Method
      of Exercise.
      The
      Conversion Right may be exercised by the Holder by the surrender of this Warrant
      at the principal office of the Company together with the Subscription Form
      in
      the form attached hereto, duly completed and executed and indicating the number
      of shares subject to this Warrant which are being surrendered (referred to
      in
      Section 1.5(a) hereof as the Converted Warrant Shares) in exercise of the
      Conversion Right. Such conversion shall be effective upon receipt by the Company
      of this Warrant, together with the aforesaid written statement, or on such
      later
      date as is specified therein (the “Conversion
      Date”),
      and,
      at the election of the Holder hereof, may be made contingent upon the occurrence
      of any of the events specified in Section 7. Certificates for the shares
      issuable upon exercise of the Conversion Right and, if applicable, a new warrant
      (date the date hereof) evidencing the balance of the shares remaining subject
      to
      this Warrant, shall be issued as of the Conversion Date and shall be delivered
      to the Holder within thirty (30) days following the Conversion
      Date.

    

    (c) Determination
      of Fair Market Value.
      For
      purposes of this Section 1.5, “fair
      market value”
of
      a
      share of Warrant Stock as of a particular date (the “Determination
      Date”)
      shall
      mean: 

    

    (1) If
      the
      Company’s Common Stock is traded on an exchange or is quoted on the Nasdaq
      National or Small Cap Market, then the closing price on the day before the
      Determination Date;

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    (2) If
      the
      Company’s Common Stock is not traded on an exchange or on the Nasdaq National or
      Small Cap Market but is traded in the over-the-counter market, then the closing
      price on the day before the Determination Date;

    

    (3) In
      the
      event that the Determination Date is the date of a liquidation, dissolution
      or
      winding up, or any event deemed to be a liquidation, dissolution or winding
      up
      with respect to the Warrant Stock under the Company’s Certificate of
      Incorporation, then the fair market value per share of the Warrant Stock shall
      be determined by aggregating all amounts to be payable per share to holders
      of
      the Warrant Stock in the event of such liquidation, dissolution or winding
      up;
      or

    

    (4) In
      all
      other cases, the fair market value per share of the Warrant Stock shall be
      determined in good faith by the Company’s Board of Directors upon review of
      relevant factors.

    

    2. Certain
      Adjustments.
      The
      Purchase Price and the number of shares of Warrant Stock
      deliverable upon exercise of the Warrant shall be subject to adjustment from
      time to time as follows:

    

    2.1 Subdivision,
      Reclassification or Change in Common Stock.
      In the
      event of any subdivision, reclassification or change of the Common Stock into
      a
      greater number or different class or classes of stock, the number of shares
      of
      Warrant Stock deliverable upon exercise of this Warrant shall be determined
      in
      accordance with the terms of the Certificate of Incorporation, and the Purchase
      Price for such Warrant Stock shall be proportionately reduced. 

     

    2.2 Consolidation,
      Reclassification or Change in Common Stock.
      In the
      event of any consolidation, reclassification or change of the Common Stock
      into
      a lesser number or different class or classes of stock, the number of shares
      of
      Warrant Stock deliverable upon exercise of this Warrant shall be determined
      in
      accordance with the terms of the Certificate of Incorporation, and the Purchase
      Price for such Warrant Stock shall be proportionately increased.

     

    2.3 Reorganizations.
      If
      there shall occur any capital reorganization of the Common Stock (other than
      a
      subdivision, combination, reclassification or change in par value), then, as
      part of any such reorganization, lawful provision shall be made so that the
      Holder shall have the right thereafter to receive upon the exercise of this
      Warrant the kind and amount of shares of stock or other securities or property
      which such Holder would have been entitled to receive if, immediately prior
      to
      any such reorganization, such Holder had held the number of shares of Common
      Stock which were then purchasable upon the exercise of this Warrant. In any
      such
      case, appropriate adjustment (as reasonably determined by the Board of Directors
      of the Company) shall be made in the application of the provisions set forth
      herein with respect to the rights and interests thereafter of the Holder such
      that the provisions set forth in this Section 2 (including provisions with
      respect to adjustment of the Purchase Price) shall thereafter be applicable,
      as
      nearly as is reasonably practicable, in relation to any shares of stock or
      other
      securities or property thereafter deliverable upon the exercise of this
      Warrant.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    2.4 Merger,
      Consolidation or Sale of Assets.
      Subject
      to the provisions of Section 7, if there shall be a merger or consolidation
      of
      the Company with or into another corporation (other than a merger or
      reorganization involving only a change in the state of incorporation of the
      Company or the acquisition by the Company of other businesses where the Company
      survives as a going concern), or the sale of all or substantially all of the
      Company’s capital stock or assets to any other person, then as a part of such
      transaction, provision shall be made so that the Holder shall thereafter be
      entitled to receive the number of shares of stock or other securities or
      property of the Company, or of the successor corporation resulting from the
      merger, consolidation or sale, to which the Holder would have been entitled
      if
      the Holder had exercised its rights pursuant to this Warrant immediately prior
      thereto. In any such case, appropriate adjustment shall be made in the
      application of the provisions of this Section 2 to the end that the provisions
      of this Section 2 shall be applicable after that event in as nearly equivalent
      a
      manner as may be practicable.

     

    2.5 Certificate
      of Adjustment.
      When
      any adjustment is required to be made in the Purchase Price, the Company shall
      promptly mail to the Holder a certificate setting forth the Purchase Price
      after
      such adjustment and setting forth a brief statement of the facts requiring
      such
      adjustment. Delivery of such certificate shall be deemed to be a final and
      binding determination with respect to such adjustment unless challenged by
      the
      Holder within ten (10) days of receipt thereof. Such certificate shall also
      set
      forth the kind and amount of stock or other securities or property into which
      this Warrant shall be exercisable following the occurrence of any of the events
      specified in this Section 2.

     

    3. Compliance
      with Securities Act.

     

    3.1 Unregistered
      Securities.
      The
      Holder acknowledges that this Warrant and the Warrant Stock have not been
      registered under the Securities Act, and agrees not to sell, pledge, distribute,
      offer for sale, transfer or otherwise dispose of this Warrant or any Warrant
      Stock in the absence of (i) an effective registration statement under the
      Securities Act covering this Warrant or such Warrant Stock and registration
      or
      qualification of this Warrant or such Warrant Stock under any applicable
“blue-sky” or state securities law then in effect, or (ii) an opinion of
      counsel, satisfactory to the Company, that such registration and qualification
      are not required. The Company may delay issuance of the Warrant Stock until
      completion of any action or obtaining of any consent, which the Company deems
      necessary under any applicable law (including without limitation state
      securities or “blue-sky”
      laws).

     

    3.2 Legend.
      Certificates delivered to the Holder pursuant to Section 1.3 shall bear the
      following legend or a legend in substantially similar form:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
      THE
      ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
      (B)
      AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS
      NOT
      REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS
      SOLD
      PURSUANT TO RULE 144 UNDER SAID ACT.”

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    4. Reservation
      of Stock.
      The
      Company agrees that, prior to the expiration of this Warrant, the Company will
      at all times have authorized and in reserve, and will keep available, solely
      for
      issuance or delivery upon the exercise of this Warrant, the shares of Common
      Stock and other securities and properties as from time to time shall be
      receivable upon the exercise of this Warrant, free and clear of all restrictions
      on sale or transfer and free and clear of all preemptive rights and rights
      of
      first refusal.

     

    5. Replacement
      of Warrants.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and (in the case of loss, theft or
      destruction) upon delivery of an indemnity agreement (with surety if reasonably
      required) in an amount reasonably satisfactory to the Company, or (in the case
      of mutilation) upon surrender and cancellation of this Warrant, the Company
      will
      issue, in lieu thereof, a new Warrant of like tenor.

     

    6. Registration
      Rights.

    

    6.1.
      “Piggy
      Back” Registration.
      If at
      any time the Company shall determine to register under the Securities Act,
      any
      of its Common Stock, other than on Form S-8 or its then equivalent, it shall
      send to the Holder written notice of such determination and, if within thirty
      (30) days after receipt of such notice, the Holder shall so request in writing,
      the Company shall use its best efforts to include in such registration statement
      all or any part of the Warrant Stock except that if, in connection with any
      offering involving an underwriting of Common Stock to be issued by the Company,
      the managing underwriter shall impose a limitation on the number of shares
      of
      such Common Stock which may be included in any such registration statement
      because, in its judgment, such limitation is necessary to effect an orderly
      public distribution, and such limitation is imposed pro rata
      among
      the holders of such Common Stock having an incidental (“piggy
      back”)
      right
      to include such Common Stock in the registration statement according to the
      amount of such Common Stock which each holder had requested to be included
      pursuant to such right, then the Company shall be obligated to include in such
      registration statement only such limited portion of the Warrant Stock with
      respect to which the Holder has requested inclusion hereunder.

    

    6.2.
      Effectiveness.
      The
      Company will use its best efforts to maintain the effectiveness for up to twelve
      (12) months of any registration statement pursuant to which any of the Warrant
      Stock is being offered, and from time to time will amend or supplement such
      registration statement and the prospectus contained therein as and to the extent
      necessary to comply with the Securities Act and any applicable state securities
      statute or regulation. The Company will also provide the Holder with as many
      copies of the prospectus contained in any such registration statement as it
      may
      reasonably request.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    6.3.
      Indemnification
      of Holder.
      In the
      event that the Company registers any of the Warrant Stock under the Securities
      Act, the Company will indemnify and hold harmless the Holder from and against
      any and all losses, claims, damages, expenses or liabilities, to which it
      becomes subject under the Securities Act or under any other statute or at common
      law or otherwise, and, except as hereinafter provided, will reimburse the Holder
      for any legal or other expenses reasonably incurred by it in connection with
      investigating or defending any actions whether or not resulting in any
      liability, insofar as such losses, claims, damages, expenses, liabilities or
      actions arise out of or are based upon any untrue statement or alleged untrue
      statement of a material fact contained in the registration statement, in any
      preliminary or amended preliminary prospectus or in the prospectus (or the
      registration statement or prospectus as from time to time amended or
      supplemented by the Company) or arise out of or are based upon the omission
      or
      alleged omission to state therein a material fact required to be stated therein
      or necessary in order to make the statements therein not misleading or any
      violation by the Company of any rule or regulation promulgated under the
      Securities Act applicable to the Company and relating to action or inaction
      required of the Company in connection with such registration, unless such untrue
      statement or omission was made in such registration statement, preliminary
      or
      amended, preliminary prospectus or prospectus in reliance upon and in conformity
      with information furnished in writing to the Company in connection therewith
      by
      the Holder expressly for use therein. Promptly after receipt by the Holder
      of
      notice of the commencement of any action in respect of which indemnity may
      be
      sought against the Company, the Holder will notify the Company in writing of
      the
      commencement thereof, and, subject to the provisions hereinafter stated, the
      Company shall assume the defense of such action (including the employment of
      counsel, who shall be counsel reasonably satisfactory to the Holder), and the
      payment of expenses insofar as such action shall relate to any alleged liability
      in respect of which indemnity may be sought against the Company. The Holder
      shall have the right to employ separate counsel in any such action and to
      participate in the defense thereof but the fees and expenses of such counsel
      shall not be at the expense of the Company unless the employment of such counsel
      has been specifically authorized by the Company. The Company shall not be liable
      to indemnify any person for any settlement of any such action effected without
      the Company’s consent.

    

    6.4.
      Indemnification
      of Company.
      In the
      event that the Company registers any of the Warrant Stock under the Securities
      Act, the Holder will indemnify and hold harmless the Company, each of its
      directors, each of its officers who have signed the registration statement,
      each
      underwriter of the shares so registered (including any broker or dealer through
      whom such of the shares may be sold) and each person, if any, who controls
      the
      Company within the meaning of Section 15 of the Securities Act from and against
      any and all losses, claims, damages, expenses or liabilities, joint or several,
      to which they or any of them may become subject under the Securities Act or
      under any other statute or at common law or otherwise, and, except as
      hereinafter provided, will reimburse the Company and each such director,
      officer, underwriter or controlling person for any legal or other expenses
      reasonably incurred by them or any of them in connection with investigating
      or
      defending any actions whether or not resulting in any liability, insofar as
      such
      losses, claims, damages, expenses, liabilities or actions arise out of or are
      based upon any untrue statement or alleged untrue statement of a material fact
      contained in the registration statement, in any preliminary or amended
      preliminary prospectus or in the prospectus (or in the registration statement
      or
      prospectus as from time to time amended or supplemented) or arise out of or
      are
      based upon the omission or alleged omission to state therein a material fact
      required to be stated therein or necessary in order to make the statements
      therein not misleading, but only insofar as any such statement or omission
      was
      made in reliance upon and in conformity with information furnished in writing
      to
      the Company in connection therewith by the Holder expressly for use therein.
      Promptly after receipt of notice of the commencement of any action in respect
      of
      which indemnity may be sought against the Holder, the Company will notify the
      Holder in writing of the commencement thereof, and the Holder shall, subject
      to
      the provisions hereinafter stated, assume the defense of such action (including
      the employment of counsel, who shall be counsel reasonably satisfactory to
      the
      Company) and the payment of expenses insofar as such action shall relate to
      the
      alleged liability in respect of which indemnity may be sought against the
      Holder. The Company and each such director, officer, underwriter or controlling
      person shall have the right to employ separate counsel in any such action and
      to
      participate in the defense thereof but the fees and expenses of such counsel
      shall not be at the expense of the Holder unless employment of such counsel
      has
      been specifically authorized by the Holder. The Holder shall not be liable
      to
      indemnify any person for any settlement of any such action effected without
      the
      Holder’s consent.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    7. Termination
      Upon Certain Events.
       If
      there
      shall be a merger or consolidation of the Company with or into another
      corporation (other than a merger or reorganization involving only a change
      in
      the state of incorporation of the Company or the acquisition by the Company
      of
      other businesses where the Company survives as a going concern), or the sale
      of
      all or substantially all of the Company’s capital stock or assets to any other
      person, or the liquidation or dissolution of the Company, then as a part of
      such
      transaction, at the Company’s option, either:

     

    (a) provision
      shall be made so that the Holder shall thereafter be entitled to receive the
      number of shares of stock or other securities or property of the Company, or
      of
      the successor corporation resulting from the merger, consolidation or sale,
      to
      which the Holder would have been entitled if the Holder had exercised its rights
      pursuant to this Warrant immediately prior thereto (and, in such case,
      appropriate adjustment shall be made in the application of the provisions of
      this Section 7(a) to the end that the provisions of Section 2 shall be
      applicable after that event in as nearly equivalent a manner as may be
      practicable); or

     

    (b) this
      Warrant shall terminate on the effective date of such merger, consolidation
      or
      sale (the “Termination
      Date”)
      and
      become null and void, provided that if this Warrant shall not have otherwise
      terminated or expired, (i) the Company shall have given the Holder written
      notice of such Termination Date at least twenty (20) business days prior to
      the
      occurrence thereof and (ii) the Holder shall have the right until 5:00 p.m.,
      New
      York City local time, on the day immediately prior to the Termination Date
      to
      exercise its rights hereunder to the extent not previously
      exercised.

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    8. Transferability.
      Without
      the prior written consent of the Company, this Warrant shall not be assigned,
      pledged or hypothecated in any way (whether by operation of law or otherwise)
      and shall not be subject to execution, attachment or similar process. Any
      attempted transfer, assignment, pledge, hypothecation or other disposition
      of
      this Warrant or of any rights granted hereunder contrary to the provisions
      of
      this Section 8, or the levy of any attachment or similar process upon this
      Warrant or such rights, shall be null and void.

     

    9. No
      Rights as Stockholder.
      Until
      the exercise of this Warrant, the Holder shall not have or exercise any rights
      by virtue hereof as a stockholder of the Company.

     

    10. Notices.
      All
      notices, requests and other communications hereunder shall be in writing, shall
      be either (i) delivered by hand, (ii) made by telex, telecopy or facsimile
      transmission, (iii) sent by overnight courier, or (iv) sent by registered mail,
      postage prepaid, return receipt requested. In the case of notices from the
      Company to the Holder, they shall be sent to the address furnished to the
      Company in writing by the last Holder who shall have furnished an address to
      the
      Company in writing. All notices from the Holder to the Company shall be
      delivered to the Company at its offices at 2121 Avenue of the Stars, Suite
      1650,
      Los Angeles, California 90067, Attention: Chief Executive Officer, or such
      other
      address as the Company shall so notify the Holder. All notices, requests and
      other communications hereunder shall be deemed to have been given (i) by hand,
      at the time of the delivery thereof to the receiving party at the address of
      such party described above, (ii) if made by telex, telecopy or facsimile
      transmission, at the time that receipt thereof has been acknowledged by
      electronic confirmation or otherwise, (iii) if sent by overnight courier, on
      the
      next business day following the day such notices is delivered to the courier
      service, or (iv) if sent by registered mail, on the fifth business day following
      the day such mailing is made.

    

    11. Waivers
      and Modifications.
      Any
      term or provision of this Warrant may be waived only by written document
      executed by the party entitled to the benefits of such terms or
      provisions.

    The
      terms
      and provisions of this Warrant may be modified or amended only by written
      agreement executed by the parties hereto.

     

    12. Headings.
      The
      headings in this Warrant are for convenience of reference only and shall in
      no
      way modify or affect the meaning or construction of any of the terms or
      provisions of this Warrant.

     

    13. Governing
      Law.
      This
      Warrant will be governed by and construed in accordance with and governed by
      the
      laws of New York without giving effect to the conflict of law principles
      thereof.

     

    [Signature
      Page Follows]

     

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

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

     

    
      	 	 	 
	 	U.S.
              WIRELESS
              DATA, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	
              Title:

            

    

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    PURCHASE
      FORM

    

    To: U.S.
      WIRELESS DATA, INC.

    

    The
      undersigned pursuant to the provisions set forth in the attached Warrant hereby
      irrevocably elects to (check one):

    

    _____  (A) purchase
      ___________________ shares of Common Stock, par value $0.01 per share, of U.S.
      Wireless Data, Inc. (the “Common
      Stock”),
      covered by such Warrant and herewith makes payment of $_____________,
      representing the full purchase price for such shares at the price per share
      provided for in such Warrant; or

    

    _____  (B) convert
      ______________________ Warrant Shares into that number of shares of fully paid
      and nonassessable shares of Common Stock, determined pursuant to the provisions
      of Section 1.5 of the Warrant.

    

    Common
      Stock for which the Warrant may be exercised or converted shall be known herein
      as “Warrant
      Stock.”

    

    The
      undersigned is aware that Warrant Stock has not been and will not be registered
      under the Securities Act of 1933, as amended (the “Securities
      Act”),
      or
      any state securities laws. The undersigned understands that reliance by the
      Company on exemptions under the Securities Act is predicated in part upon the
      truth and accuracy of the statements of the undersigned in this Purchase
      Form.

    

    The
      undersigned represents and warrants that (i) he has been furnished with all
      information which he deems necessary to evaluate the merits and risks of the
      purchase of Warrant Stock, (ii) he has had the opportunity to ask questions
      concerning Warrant Stock and the Company and all questions posed have been
      answered to his satisfaction, (iii) he has been given the opportunity to obtain
      any additional information he deems necessary to verify the accuracy of any
      information obtained concerning Warrant Stock and the Company and (iv) he has
      such knowledge and experience in financial and business matters that he is
      able
      to evaluate the merits and risks of purchasing Warrant Stock and to make an
      informed investment decision relating thereto.

    

    The
      undersigned hereby represents and warrant that he is purchasing Warrant Stock
      for his own account for investment and not with a view to the sale or
      distribution of all or any part of Warrant Stock.

    

    The
      undersigned understands that because Warrant Stock has not been registered
      under
      the Securities Act, he must continue to bear the economic risk of the investment
      for an indefinite period of time and Warrant Stock cannot be sold unless it
      is
      subsequently registered under applicable federal and state securities laws
      or an
      exemption from such registration is available.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    The
      undersigned agrees that he will in no event sell or distribute or otherwise
      dispose of all or any part of Warrant Stock unless (i) there is an effective
      registration statement under the Securities Act and applicable state securities
      laws covering any such transaction involving Warrant Stock, or (ii) the Company
      receives an opinion legal counsel acceptable to the Company stating that such
      transaction is exempt from registration. The undersigned consents to the placing
      of a legend on his certificate for Warrant Stock stating: (i) that the resale
      or
      transfer of the Warrant Stock has not been registered and setting forth the
      restriction on transfer contemplated hereby; and (ii) to the placing of a
      stop-transfer order on the books of the Company and with any transfer agents
      against Warrant Stock until Warrant Stock may be legally resold or distributed
      without restriction.

    

    The
      undersigned has considered the federal and state income tax implications of
      the
      exercise of the Warrant and the purchase and subsequent sale of the Warrant
      Stock.

    

    
      	 	 	 
	 	_______________________________
	 	Signature
	 	 
	 	_______________________________
	 	Print Name
	 	 
	 	or
	 	 
	 	
              Entity
                Name:_____________________

            
	 	 
	 	By:_____________________________
	 	Signature
	 	_______________________________
	 	Print Name
	 	_______________________________
	 	Title

    
      
         

      

      
        -2-Exhibit 10.1

                             Power Technology, Inc.
             2006 Stock Option, SAR and Stock Bonus Consultant Plan

                                    ARTICLE 1

                               General Provisions

1.1 Purpose. The purpose of the Power Technology, Inc.'s 2006 Stock Option, SAR
and Stock Bonus Consultant Plan (the "Plan") shall be to retain and compensate
independent consultants (the "Participants") of Power Technology, Inc. (the
"Company") and its subsidiaries, if any, by way of granting (i) non-qualified
stock options ("Stock Options"), (ii) non-qualified stock options with stock
appreciation rights attached ("Stock Option SARs"), and (v) stock bonuses.
Directors, officers and employees of the Company are not eligible to participate
in this Plan. In addition, no person shall be a Participant in this Plan in
consideration for consulting or other services related to capital raising
activities for the Company or related to any stock promotion activities for the
Company. For the purpose of this Plan, Stock Option SARs are sometimes
collectively herein called "SARs;" and Stock Options. The Stock Options to be
granted are intended to be "non-qualified stock options" as described in
Sections 83 and 421 of the Code. Furthermore, under the Plan, the terms "parent"
and "subsidiary" shall have the same meaning as set forth in Subsections (e) and
(f) of Section 425 of the Code unless the context herein clearly indicates to
the contrary.

1.2 General. The terms and provisions of this Article I shall be applicable to
Stock Options and SARs unless the context herein clearly indicates to the
contrary.

1.3 Administration of the Plan. The Plan shall be administered by the Stock Plan
Committee (the "Committee") appointed by the Board of Directors (the "Board") of
the Company and consisting of at least one member from the Board. The members of
the Committee shall serve at the pleasure of the Board. The Committee shall have
the power where consistent with the general purpose and intent of the Plan to
(i) modify the requirements of the Plan to conform with the law or to meet
special circumstances not anticipated or covered in the Plan, (ii) suspend or
discontinue the Plan, (iii) establish policies and (iv) adopt rules and
regulations and prescribe forms for carrying out the purposes and provisions of
the Plan including the form of any "stock option agreements" ("Stock Option
Agreements"). Unless otherwise provided in the Plan, the Committee shall have
the authority to interpret and construe the Plan, and determine all questions
arising under the Plan and any agreement made pursuant to the Plan. Any
interpretation, decision or determination made by the Committee shall be final,
binding and conclusive. A majority of the Committee shall constitute a quorum,
and an act of the majority of the members present at any meeting at which a
quorum is present shall be the act of the Committee.

1.4 Shares Subject to the Plan. Shares of stock ("Stock") covered by Stock
Options, SARs, and stock bonuses shall consist of 13,000,000 shares of the
Common Stock, $.001 par value, of the Company. Either authorized and unissued
shares or treasury shares may be delivered pursuant to the Plan. If any Option
for shares of Stock, granted to a Participant lapses, or is otherwise
terminated, the Committee may grant Stock Options, SARs and stock bonuses for
such shares of Stock to other Participants. However, neither Stock Options nor
SARs shall be granted again for shares of Stock which have been subject to SARs
which are surrendered in exchange for cash or shares of Stock issued pursuant to
the exercise of SARs as provided in Article II hereof.

1.5 Participation in the Plan. The Committee shall determine from time to time
those Participants who are to be granted Stock Options, SARs and stock bonuses
and the number of shares of Stock covered thereby.

<PAGE>

1.6 Determination of Fair Market Value. As used in the Plan, "fair market value"
shall mean on any particular day (i) if the Stock is listed or admitted for
trading on any national securities exchange or the National Market System of the
National Association of Securities Dealers, Inc. Automated Quotation System, the
last sale price, or if no sale occurred, the mean between the closing high bid
and low asked quotations, for such day of the Stock on the principal securities
exchange on which shares of Stock are listed, (ii) if Stock is not traded on any
national securities exchange but is quoted on the National Association of
Securities Dealers, Inc., Automated Quotation System, the NASD electronic
bulletin board, or any similar system of automated dissemination of quotations
or securities prices in common use, the mean between the closing high bid and
low asked quotations for such day of the Stock on such system, (iii) if neither
clause (i) nor (ii) is applicable, the mean between the high bid and low asked
quotations for the Stock as reported by the National Quotation Bureau,
Incorporated if at least two securities dealers have inserted both bid and asked
quotations for shares of the Stock on at least five (5) of the ten (10)
preceding days, (iv) in lieu of the above, if actual transactions in the shares
of Stock are reported on a consolidated transaction reporting system, the last
sale price of the shares of Stock on such system or, (v) if none of the
conditions set forth above is met, the fair market value of shares of Stock as
determined by the Board. Provided, for purposes of determining "fair market
value" of the Common Stock of the Company, such value shall be determined
without regard to any restriction other than a restriction which will never
lapse.

1.7 Adjustments Upon Changes in Capitalization. The aggregate number of shares
of Stock under Stock Options granted under the Plan, the Option Price and the
total number of shares of Stock which may be purchased by a Participant on
exercise of a Stock Option shall be approximately adjusted by the Committee to
reflect any recapitalization, stock split, merger, consolidation,
reorganization, combination, liquidation, stock dividend or similar transaction
involving the Company except that a dissolution or liquidation of the Company or
a merger or consolidation in which the Company is not the surviving or the
resulting corporation, shall cause the Plan and any Stock Option, or SAR granted
thereunder, to terminate upon the effective date of such dissolution,
liquidation, merger or consolidation. Provided, that for the purposes of this
Section 1.7, if any merger, consolidation or combination occurs in which the
Company is not the surviving corporation and is the result of a mere change in
the identity, form or place of organization of the Company accomplished in
accordance with Section 368(a)(1)(F) of the Code, then, such event will not
cause a termination. Appropriate adjustment may also be made by the Committee in
the terms of a SAR to reflect any of the foregoing changes.

1.8 Amendment and Termination of the Plan. The Plan shall terminate at midnight,
February 7, 2011, but prior thereto may be altered, changed, modified, amended
or terminated by written amendment approved by the Board. Provided, that no
action of the Board may, without the approval of the Board of Directors,
increase the aggregate number of shares of Stock which may be purchased under
Stock Options, SARs or stock bonuses granted under the Plan; or withdraw the
administration of the Plan from the Committee. Except as provided in this
Article I, no amendment, modification or termination of the Plan shall in any
manner adversely affect any Stock Option or SAR theretofore granted under the
Plan without the consent of the affected Participant.

1.9 Effective Date. The Plan shall be effective February 8,2006. The Plan shall
terminate at midnight on February 7, 2011.

1.10 Securities Law Requirements. The Company shall have no liability to issue
any Stock hereunder unless the issuance of such shares would comply with any
applicable federal or state securities laws or any other applicable law or
regulations thereunder.

1.11 Separate Certificates. Separate certificates representing the Common Stock
of the Company to be delivered to a Participant upon the exercise of any Stock
Option, or SAR will be issued to such Participant.

1.12 Payment for Stock; Receipt of Stock or Cash in Lieu of Payment.

     (a)     Payment for Stock. Payment for shares of Stock acquired under this
Plan shall be made in full and in cash or check made payable to the Company.
Provided, payment for shares of Stock purchased under this Plan may also be made
in Common Stock of the Company or a combination of cash and Common Stock of the
Company in the event that the purchase of shares is pursuant to the exercise of
rights under an SAR attached to the Option and which is exercisable on the date
of exercise of the Option. In the event that Common Stock of the Company is
utilized in consideration for the purchase of Stock upon the exercise of a Stock
Option, then, such Common Stock shall be valued at the "fair market value" as
defined in Section 1.6 of the Plan.

<PAGE>

     (b)     Receipt of Stock or Cash in Lieu of Payment. Furthermore, a
Participant may exercise an Option without payment of the Option Price in the
event that the exercise is pursuant to rights under an SAR attached to the
Option and which is exercisable on the date of exercise of the Option. In the
event an Option with an SAR attached is exercised without payment of the Option
Price, the Participant shall be entitled to receive either (i) a cash payment
from the Company equal to the excess of the total fair market value of the
shares of Stock on such date as determined with respect to which the Option is
being exercised over the total cash Option Price of such shares of Stock as set
forth in the Option or (ii) that number of whole shares of Stock as is
determined by dividing (A) an amount equal to the fair market value per share of
Stock on the date of exercise into (B) an amount equal to the excess of the
total fair market value of the shares of Stock on such date with respect to
which the Option is being exercised over the total cash Option Price of such
shares of Stock as set forth in the Option, and fractional shares will be
rounded to the next lowest number and the Participant will receive cash in lieu
thereof.

1.13 Incurrence of Disability. A Participant shall be deemed to have terminated
consulting and incurred a disability ("Disability") if such Participant suffers
a physical or mental condition which, in the judgment of the Committee, totally
and permanently prevents a Participant from engaging in any substantial gainful
consulting with the Company or a subsidiary.

1.14 Grants of Options and Stock Option Agreement. Each Stock Option and/or SAR
granted under this Plan shall be evidenced by the minutes of a meeting of the
Committee or by the written consent of the Committee and by a written Stock
Option Agreement effective on the date of grant and executed by the Company and
the Participant. Each Option granted hereunder shall contain such terms,
restrictions and conditions as the Committee may determine, which terms,
restrictions and conditions may or may not be the same in each case.

1.15 Use of Proceeds. The proceeds received by the Company from the sale of
Stock pursuant to the exercise of Options granted under the Plan shall be added
to the Company's general funds and used for general corporate purposes.

1.16 Non-Transferability of Options. Except as otherwise herein provided, any
Option or SAR granted shall not be transferable otherwise than by will or the
laws of descent and distribution, and the Option may be exercised, during the
lifetime of the Participant, only by him or her. More particularly (but without
limiting the generality of the foregoing), the Option and/or SAR may not be
assigned, transferred (except as provided above), pledged or hypothecated in any
way, shall not be assignable by operation of law and shall not be subject to
execution, attachment, or similar process. Any attempted assignment, transfer,
pledge, hypothecation, or other disposition of the Option and/or SAR contrary to
the provisions hereof shall be null and void and without effect.

1.17 Additional Documents on Death of Participant. No transfer of an Option
and/or SAR by the Participant by will or the laws of descent and distribution
shall be effective to bind the Company unless the Company shall have been
furnished with written notice and an unauthenticated copy of the will and/or
such other evidence as the Committee may deem necessary to establish the
validity of the transfer and the acceptance by the successor to the Option
and/or SAR of the terms and conditions of such Option and/or SAR.

1.18 Changes in Consultant Relationships. So long as the Participant shall
continue to be a consultant of the Company or any one of its subsidiaries, any
Option granted to him or her shall not be affected by any change of duties or
position. Nothing in the Plan or in any Stock Option Agreement which relates to
the Plan shall confer upon any Participant any right to continue as a consultant
of the Company or of any of its subsidiaries, or interfere in any way with the
right of the Company or any of its subsidiaries to terminate the consulting
arrangement at any time.

1.19 Shareholder Rights. No Participant shall have a right as a shareholder with
respect to any shares of Stock subject to an Option prior to the purchase of
such shares of Stock by exercise of the Option.

1.20 Right to Exercise Upon Company Ceasing to Exist. Where dissolution or
liquidation of the Company or any merger consolidation or combination in which
the Company is not the surviving corporation occurs, the Participant shall have
the right immediately prior to such dissolution, liquidation, merger,
consolidation or combination, as the case may be, to exercise, in whole or in
part, his or her then remaining Options whether or not then exercisable, but
limited to that number of shares that can be acquired without causing the
Participant to have an "excess parachute payment" as determined under Section
280G of the Code determined by taking into account all of Participant's
"parachute payments" determined under Section 280G of the Code. Provided, the
foregoing notwithstanding, after the Participant has been afforded the
opportunity to exercise his or her then remaining Options as provided in this
Section 1.21, and to the extent such Options are not timely exercised as
provided in this Section 1.21,

<PAGE>

then, the terms and provisions of this Plan and any Stock Option Agreement will
thereafter continue in effect, and the Participant will be entitled to exercise
any such remaining and unexercised Options in accordance with the terms and
provisions of this Plan and such Stock Option Agreement as such Options
thereafter become exercisable. Provided further, that for the purposes of this
Section 1.21, if any merger, consolidation or combination occurs in which the
Company is not the surviving corporation and is the result of a mere change in
the identity, form, or place of organization of the Company accomplished in
accordance with Section 368(a)(1)(F) of the Code, then, such event shall not
cause an acceleration of the exercisability of any such Options granted
hereunder.

1.21 Assumption of Outstanding Options and SARs. To the extent permitted by the
then applicable provisions of the Code, any successor to the Company succeeding
to, or assigned the business of, the Company as the result of or in connection
with a corporate merger, consolidation, combination, reorganization or
liquidation transaction shall assume Options and SARs outstanding under the Plan
or issue new Options and/or SARs in place of outstanding Options and/or SARs
under the Plan, as determined in its sole discretion.

                                   ARTICLE II

                       Terms of Stock Options and Exercise

2.1 General Terms.

    (a)    Grant and Terms for Stock Options. Stock Options shall be granted
by the Committee on the following terms and conditions: No Stock Option shall be
exercisable more than five years after the date of grant. Subject to such
limitation, the Committee shall have the discretion to fix the period (the
"Option Period") during which any Stock Option may be exercised. Stock Options
granted shall not be transferable except by will or by the laws of descent and
distribution, Stock Options shall be exercisable only by the Participant while
actively retained as a consultant by the Company or a subsidiary, except that
(i) any such Stock Option granted and which is otherwise exercisable, may be
exercised by the personal representative of a deceased Participant within 12
months after the death of such Participant (but not beyond the Option Period of
such Stock Option), (ii) if a Participant terminates his position as a
consultant with the Company or a subsidiary on account of Retirement, such
Participant may exercise any Stock Option which is otherwise exercisable at any
time within three months of such date of termination and (iii) if a Participant
terminates his position as a consultant with the Company or a subsidiary on
account of incurring a Disability, such Participant may exercise any Stock
Option which is otherwise exercisable at any time within 12 months of such date
of termination. If a Participant should die during the applicable three-month or
12-month period following the date of such Participant's termination on account
of Disability, the rights of the personal representative of such deceased
Participant as such relate to any Stock Options granted to such deceased
Participant shall be governed in accordance with Subsection 2.1(a)(i) of this
Article II.

    (b)     Option Price. The option price ("Option Price") for shares of Stock
subject to a Stock Option shall be determined by the Committee in its sole
Discretion.

    (c)     Acceleration of Otherwise Unexercisable Stock Option on Death,
Disability or Other Special Circumstances. The Committee, in its sole
discretion, may permit (i) a Participant who terminates his position as a
consultant due to a Disability, (ii) the personal representative of a deceased
Participant, or (iii) any other Participant who terminates his position as a
consultant upon the occurrence of special circumstances (as determined by the
Committee) to exercise and purchase (within three months of such date of
termination of consulting arrangement, or 12 months in the case of a deceased or
disabled Participant; all or any part of the shares subject to Stock Option on
the date of the Participant's Disability, death, or as the Committee otherwise
so determines, notwithstanding that all installments, if any, with respect to
such Stock Option, had not accrued on such date. Provided, such discretionary
authority of the Committee shall not be exercised with respect to any Stock
Option (or portion thereof) any waiting period for exercise had not expired
except in the event of the death or disability of the Participant when the
personal representative of the deceased Participant or the disabled Participant
may, with the consent of the Committee, exercise such Stock Option
notwithstanding the fact that any waiting period had not yet expired.

<PAGE>

    (d)     Number of Stock Options Granted. Participants may be granted more
than one Stock Option. In making any such determination, the Committee shall
obtain the advice and recommendation of the officers of the Company or a
subsidiary which have supervisory authority over such Participants. The granting
of a Stock Option under the Plan shall not affect any outstanding Stock Option
previously granted to a Participant under the Plan.

    (e)     Notice of Exercise Stock Option. Upon exercise of a stock option, a
Participant shall give written notice to the Secretary of the Company, or other
officer designated by the Committee, at the Company's main office in Las Vegas,
Nevada. No Stock shall be issued to any Participant until the Company receives
full payment for the Stock purchased, if applicable, and any required state and
federal withholding taxes.

                                   ARTICLE III

                                      SARs

3.1 General Terms.

    (a)     Grant and Terms of SARs. The Committee may grant SARs to
Participants in connection with Stock Options granted under the Plan. SARs shall
not be exercisable (i) earlier than any waiting period from the date of grant
except as specifically provided in Subsection 3.l(b) hereof in the case of the
death or Disability of a Participant, and (ii) shall terminate at such time as
the Committee determines and shall be exercised only upon surrender of the
related Stock Option and only to the extent that the related Stock Option (or
the portion thereof as to which the SAR is exercisable) is exercised. SARs may
be exercised only by the Participant while actively engaged as a consultant by
the Company or a subsidiary except that (i) any SARs previously granted to a
Participant which are otherwise exercisable may be exercised, with the approval
of the Committee, by the personal representative of a deceased Participant, even
if such death should occur within any waiting period from the date of grant (but
not beyond the expiration date of such SAR), and (ii) if a Participant
terminates his position as a consultant with the Company or a subsidiary, as the
case may be, on account of incurring a Disability, such Participant may exercise
any SARs which are otherwise exercisable, with the approval of the Committee,
anytime within 12 months of termination by Disability. If a Participant should
die during the applicable 12 month period following the date of termination on
account of Disability, the rights of the personal representative of such
deceased Participant as such relate to any SARs granted to such deceased
Participant shall be governed in accordance with (i) of the second sentence of
this Subsection 3.l(a) of this Article III. The applicable SAR shall (i)
terminate upon the termination of the underlying Stock Option, as the case may
be, (ii) only be transferable at the same time and under the same conditions as
the underlying Stock Option is transferable, (iii) only be exercised when the
underlying Stock Option is exercised, and (iv) may be exercised only if there is
a positive spread between the Option Price, as applicable and the "fair market
value" of the Stock for which the SAR is exercised.

    (b)     Acceleration of Otherwise Unexercisable SARs upon Death, Disability
or Other Special Circumstances. The Committee, in its sole discretion, may
permit (i) a Participant who terminates his position as a consultant with the
Company or a subsidiary due to a Disability, (ii) the personal representative of
such deceased Participant, or (iii) any other Participant who terminates
employment as a consultant with the Company or a subsidiary upon the occurrence
of special circumstances (as determined by the Committee) to exercise (within 12
months in the case of a disabled or deceased Participant) all or any part of any
such SARs previously granted to such Participant as of the date of such
Participant's Disability, death, or as the Committee otherwise so determines,
notwithstanding that all installments, if any with respect to such SARs, had not
accrued on such date. Provided, such discretionary authority of the Committee
may not be exercised with respect to any SAR (or portion thereof if the
applicable six-month waiting period for exercise had not expired as of such
date, except (i) in the event of the Disability of the Participant or (ii) the
death of the Participant, when such disabled Participant or the personal
representative of such deceased Participant may, with the consent of the
Committee, exercise such SARs notwithstanding the fact that the applicable
six-month waiting period had not yet expired.

    (c)     Form of Payment of SARs. The Participant may request the method and
combination of payment upon the exercise of a SAR; however, the Committee has
the final authority to determine whether the value of the SAR shall be paid in
cash or shares of Stock or both. Upon exercise of a SAR, the holder is entitled
to receive the excess amount of the "fair market value" of the Stock (as of the
date of exercise) for which the SAR is exercised over the Option Price, as
applicable, under the related Stock Option, as the case may be. All applicable
federal and state withholding taxes will be paid by the Participant to the
Company upon the exercise of a SAR since the excess amount described above will
be required to be included within taxable income in accordance with Sections 61
and 83 of the Code.

                                         Power Technology, Inc.

                                By:      /s/ Bernard J. Walter
                                         --------------------------------------
                                         Bernard J. Walter, President

                                         Date Plan adopted and approved by the
                                         Board of Directors:
                                         February 8,  2006

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