Document:

THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL
      REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES
      UNDER
      THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
      LAWS
      IS NOT REQUIRED.

    

    SERIES
      F-4 WARRANT TO PURCHASE

    

    SHARES
      OF
      COMMON STOCK

    

    OF

    

    REMOTE
      DYNAMICS, INC. 

    

      
        	
                No.:
                  W-F-4-06-5D-#

              	
                Number
                  of Shares: ___________

              
	
                Date
                  of Issuance: May __, 2008

              	 

      

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, Remote Dynamics, Inc., a Delaware corporation
      (together with its successors and assigns, the "Issuer"),
      hereby certifies that [name of holder][address of holder] or its registered
      assigns is entitled to subscribe for and purchase, during the Term (as
      hereinafter defined), up to __________ (_________) shares (subject to adjustment
      as hereinafter provided) of the duly authorized, validly issued, fully paid
      and
      non-assessable Common Stock of the Issuer, at an exercise price per share equal
      to the Warrant Price then in effect, subject, however, to the provisions and
      upon the terms and conditions hereinafter set forth. Capitalized terms used
      in
      this Warrant and not otherwise defined herein shall have the respective meanings
      specified in Section 9 hereof.

    

    1. Term.
      The
      term of this Warrant shall commence on May __, 2008 and shall expire at 5:00
      p.m., Eastern Time, on May __, 2012 (such period being the "Term").

    

    
      
        2.
          Method
          of Exercise; Payment; Issuance of New Warrant; Transfer and
          Exchange.

      

    

    

    (a) Time
      of Exercise.
      The
      purchase rights represented by this Warrant may be exercised in whole or in
      part
      during the Term. 

    

    (b) Method
      of Exercise.
      The
      Holder hereof may exercise this Warrant, in whole or in part, by the surrender
      of this Warrant (with the exercise form attached hereto duly executed) at the
      principal office of the Issuer, and by the payment to the Issuer of an amount
      of
      consideration therefor equal to the Warrant Price in effect on the date of
      such
      exercise multiplied by the number of shares of Warrant Stock with respect to
      which this Warrant is then being exercised, payable at such Holder's election
      (i) by certified or official bank check or by wire transfer to an account
      designated by the Issuer, (ii) by "cashless exercise" in accordance with the
      provisions of subsection (c) of this Section 2, but only when a registration
      statement under the Securities Act providing for the resale of the Warrant
      Stock
      is not then in effect, or (iii) by a combination of the foregoing methods of
      payment selected by the Holder of this Warrant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) Cashless
      Exercise.
      Notwithstanding any provisions herein to the contrary and commencing one (1)
      year following the Original Issue Date if (i) the Per Share Market Value of
      one
      share of Common Stock is greater than the Warrant Price (at the date of
      calculation as set forth below) and (ii) a registration statement under the
      Securities Act providing for the resale of the Warrant Stock is not then in
      effect by the date such registration statement is required to be effective
      pursuant to the Registration Rights Agreement (as defined in the Purchase
      Agreement) or not effective at any time during the Effectiveness Period (as
      defined in the Registration Rights Agreement) in accordance with the terms
      of
      the Registration Rights Agreement, in lieu of exercising this Warrant by payment
      of cash, the Holder may exercise this Warrant by a cashless exercise and shall
      receive the number of shares of Common Stock equal to an amount (as determined
      below) by surrender of this Warrant at the principal office of the Issuer
      together with the properly endorsed Notice of Exercise in which event the Issuer
      shall issue to the Holder a number of shares of Common Stock computed using
      the
      following formula:

    

    X
      = Y -
(A)(Y)

                             
      B

    

    
      	
              Where

            	
              X
                =

            	
              the
                number of shares of Common Stock to be issued to the
                Holder.

            

    

    

    
      	 	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable upon exercise of all
                of the
                Warrant or, if only a portion of the Warrant is being exercised,
                the
                portion of the Warrant being exercised.

            

    

    

    
      	 	
              A
                =

            	
              the
                Warrant Price. 

            

    

    

    
      	
            	B
              =	
              the
                Per Share Market Value of one share of Common
                Stock.

            

    

    

    (d) Issuance
      of Stock Certificates.
      In the
      event of any exercise of this Warrant in accordance with and subject to the
      terms and conditions hereof, (i) certificates for the shares of Warrant Stock
      so
      purchased shall be dated the date of such exercise and delivered to the Holder
      hereof within a reasonable time, not exceeding three (3) Trading Days after
      such
      exercise (the “Delivery
      Date”)
      or, at
      the request of the Holder (provided that a registration statement under the
      Securities Act providing for the resale of the Warrant Stock is then in effect),
      issued and delivered to the Depository Trust Company (“DTC”)
      account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
      System (“DWAC”)
      within
      a reasonable time, not exceeding three (3) Trading Days after such exercise,
      and
      the Holder hereof shall be deemed for all purposes to be the holder of the
      shares of Warrant Stock so purchased as of the date of such exercise and (ii)
      unless this Warrant has expired, a new Warrant representing the number of shares
      of Warrant Stock, if any, with respect to which this Warrant shall not then
      have
      been exercised (less any amount thereof which shall have been canceled in
      payment or partial payment of the Warrant Price as hereinabove provided) shall
      also be issued to the Holder hereof at the Issuer's expense within such
      time.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (e) Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Issuer fails to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Stock pursuant to an exercise on or before the Delivery
      Date, and if after such date the Holder is required by its broker to purchase
      (in an open market transaction or otherwise) shares of Common Stock to deliver
      in satisfaction of a sale by the Holder of the Warrant Stock which the Holder
      anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Issuer shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of shares of Warrant Stock that the Issuer was
      required to deliver to the Holder in connection with the exercise at issue
      times
      (B) the price at which the sell order giving rise to such purchase obligation
      was executed, and (2) at the option of the Holder, either reinstate the portion
      of the Warrant and equivalent number of shares of Warrant Stock for which such
      exercise was not honored or deliver to the Holder the number of shares of Common
      Stock that would have been issued had the Issuer timely complied with its
      exercise and delivery obligations hereunder. For example, if the Holder
      purchases Common Stock having a total purchase price of $11,000 to cover a
      Buy-In with respect to an attempted exercise of shares of Common Stock with
      an
      aggregate sale price giving rise to such purchase obligation of $10,000, under
      clause (1) of the immediately preceding sentence the Issuer shall be required
      to
      pay the Holder $1,000. The Holder shall provide the Issuer written notice
      indicating the amounts payable to the Holder in respect of the Buy-In, together
      with applicable confirmations and other evidence reasonably requested by the
      Issuer. Nothing herein shall limit a Holder’s right to pursue any other remedies
      available to it hereunder, at law or in equity including, without limitation,
      a
      decree of specific performance and/or injunctive relief with respect to the
      Issuer’s failure to timely deliver certificates representing shares of Common
      Stock upon exercise of this Warrant as required pursuant to the terms
      hereof.

     

    (f) Transferability
      of Warrant.
      Subject
      to Section 2(h), this Warrant may be transferred by a Holder without the consent
      of the Issuer. If transferred pursuant to this paragraph, this Warrant may
      be
      transferred on the books of the Issuer by the Holder hereof in person or by
      duly
      authorized attorney, upon surrender of this Warrant at the principal office
      of
      the Issuer, properly endorsed (by the Holder executing an assignment in the
      form
      attached hereto) and upon payment of any necessary transfer tax or other
      governmental charge imposed upon such transfer. This Warrant is exchangeable
      at
      the principal office of the Issuer for Warrants to purchase the same aggregate
      number of shares of Warrant Stock, each new Warrant to represent the right
      to
      purchase such number of shares of Warrant Stock as the Holder hereof shall
      designate at the time of such exchange. All Warrants issued on transfers or
      exchanges shall be dated the Original Issue Date and shall be identical with
      this Warrant except as to the number of shares of Warrant Stock issuable
      pursuant thereto.

    

    (g) Continuing
      Rights of Holder.
      The
      Issuer will, at the time of or at any time after each exercise of this Warrant,
      upon the request of the Holder hereof, acknowledge in writing the extent, if
      any, of its continuing obligation to afford to such Holder all rights to which
      such Holder shall continue to be entitled after such exercise in accordance
      with
      the terms of this Warrant, provided
      that if
      any such Holder shall fail to make any such request, the failure shall not
      affect the continuing obligation of the Issuer to afford such rights to such
      Holder.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (h) Compliance
      with Securities Laws.

    

    (i) The
      Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant
      and
      the shares of Warrant Stock to be issued upon exercise hereof are being acquired
      solely for the Holder's own account and not as a nominee for any other party,
      and for investment, and that the Holder will not offer, sell or otherwise
      dispose of this Warrant or any shares of Warrant Stock to be issued upon
      exercise hereof except pursuant to an effective registration statement, or
      an
      exemption from registration, under the Securities Act and any applicable state
      securities laws.

    

    (ii) Except
      as
      provided in paragraph (iii) below, this Warrant and all certificates
      representing shares of Warrant Stock issued upon exercise hereof shall be
      stamped or imprinted with a legend in substantially the following
      form:

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL
      REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES
      UNDER
      THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES
      LAWS
IS NOT REQUIRED.

    

    (iii) The
      Issuer agrees to reissue this Warrant or certificates representing any of the
      Warrant Stock, without the legend set forth above if at such time, prior to
      making any transfer of any such securities, the Holder shall give written notice
      to the Issuer describing the manner and terms of such transfer. Such proposed
      transfer will not be effected until: (a) either (i) the Issuer has received
      an
      opinion of counsel reasonably satisfactory to the Issuer, to the effect that
      the
      registration of such securities under the Securities Act is not required in
      connection with such proposed transfer, (ii) a registration statement under
      the
      Securities Act covering such proposed disposition has been filed by the Issuer
      with the Securities and Exchange Commission and has become effective under
      the
      Securities Act, (iii) the Issuer has received other evidence reasonably
      satisfactory to the Issuer that such registration and qualification under the
      Securities Act and state securities laws are not required (which may include
      an
      opinion of counsel provided by the Issuer), or (iv) the Holder provides the
      Issuer with reasonable assurances that such security can be sold pursuant to
      Rule 144 under the Securities Act (which may include an opinion of counsel
      provided by the Issuer); and (b) either (i) the Issuer has received an opinion
      of counsel reasonably satisfactory to the Issuer, to the effect that
      registration or qualification under the securities or "blue sky" laws of any
      state is not required in connection with such proposed disposition, or (ii)
      compliance with applicable state securities or "blue sky" laws has been effected
      or a valid exemption exists with respect thereto (which may include an opinion
      of counsel provided by the Issuer). The Issuer will respond to any such notice
      from a holder within three (3) business days. In the case of any proposed
      transfer under this Section 2(h), the Issuer will use reasonable efforts to
      comply with any such applicable state securities or "blue sky" laws, but shall
      in no event be required, (x) to qualify to do business in any state where it
      is
      not then qualified, (y) to take any action that would subject it to tax or
      to
      the general service of process in any state where it is not then subject, or
      (z)
      to comply with state securities or “blue sky” laws of any state for which
      registration by coordination is unavailable to the Issuer. The restrictions
      on
      transfer contained in this Section 2(h) shall be in addition to, and not by
      way
      of limitation of, any other restrictions on transfer contained in any other
      section of this Warrant. Whenever a certificate representing the Warrant Stock
      is required to be issued to a the Holder without a legend, in lieu of delivering
      physical certificates representing the Warrant Stock, provided the Issuer’s
      transfer agent is participating in the DTC Fast Automated Securities Transfer
      program, the Issuer shall use its reasonable best efforts to cause its transfer
      agent to electronically transmit the Warrant Stock to the Holder by crediting
      the account of the Holder's Prime Broker with DTC through its DWAC system (to
      the extent not inconsistent with any provisions of this Warrant or the Purchase
      Agreement). 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (i) Accredited
      Investor Status.
      In no
      event may the Holder exercise this Warrant in whole or in part unless the Holder
      is an “accredited investor” as defined in Regulation D under the Securities Act.

    

    3. Stock
      Fully Paid; Reservation and Listing of Shares; Covenants.

    

    (a) Stock
      Fully Paid.
      The
      Issuer represents, warrants, covenants and agrees that all shares of Warrant
      Stock which may be issued upon the exercise of this Warrant or otherwise
      hereunder will, when issued in accordance with the terms of this Warrant, be
      duly authorized, validly issued, fully paid and non-assessable and free from
      all
      taxes, liens and charges created by or through the Issuer. The Issuer further
      covenants and agrees that during the period within which this Warrant may be
      exercised, the Issuer will at all times have authorized and reserved for the
      purpose of the issuance upon exercise of this Warrant such number of shares
      of
      Common Stock that are not issued or reserved for issuance as of the Original
      Issue Date; provided,
      however,
      upon
      the Issuer filing the Charter Amendment (as defined in the Purchase Agreement),
      the Issuer shall take all action necessary to at all times have authorized,
      and
      reserved for the purpose of issuance, free of preemptive rights and other
      similar contractual rights of stockholders, a number of shares of Common Stock
      equal to one hundred twenty percent (120%) of the number of shares of Common
      Stock as shall from time to time be sufficient to provide for the exercise
      of
      this Warrant.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (b) Reservation.
      If any
      shares of Common Stock required to be reserved for issuance upon exercise of
      this Warrant or as otherwise provided hereunder require registration or
      qualification with any Governmental Authority under any federal or state law
      before such shares may be so issued, the Issuer will use its reasonable best
      efforts as expeditiously as possible at its expense to cause such shares to
      be
      duly registered or qualified. If the Issuer shall list any shares of Common
      Stock on any securities exchange or market it will, at its expense, list
      thereon, maintain and increase when necessary such listing, of, all shares
      of
      Warrant Stock from time to time issued upon exercise of this Warrant or as
      otherwise provided hereunder (provided that such Warrant Stock has been
      registered pursuant to a registration statement under the Securities Act then
      in
      effect), and, to the extent permissible under the applicable securities exchange
      rules, all unissued shares of Warrant Stock which are at any time issuable
      hereunder, so long as any shares of Common Stock shall be so listed. The Issuer
      will also so list on each securities exchange or market, and will maintain
      such
      listing of, any other securities which the Holder of this Warrant shall be
      entitled to receive upon the exercise of this Warrant if at the time any
      securities of the same class shall be listed on such securities exchange or
      market by the Issuer.

    

    (c) Covenants.
      The
      Issuer shall not by any action including, without limitation, amending the
      Certificate of Incorporation or the by-laws of the Issuer, or through any
      reorganization, transfer of assets, consolidation, merger, dissolution, issue
      or
      sale of securities or any other action, avoid or seek to avoid the observance
      or
      performance of any of the terms of this Warrant, but will at all times in good
      faith assist in the carrying out of all such terms and in the taking of all
      such
      actions as may be necessary or appropriate to protect the rights of the Holder
      hereof against dilution (to the extent specifically provided herein) or
      impairment. Without limiting the generality of the foregoing, the Issuer will
      (i) not permit the par value, if any, of its Common Stock to exceed the then
      effective Warrant Price, (ii) not amend or modify any provision of the
      Certificate of Incorporation or by-laws of the Issuer in any manner that would
      adversely affect the rights of the Holders of the Warrants, (iii) take all
      such
      action as may be reasonably necessary in order that the Issuer may validly
      and
      legally issue fully paid and nonassessable shares of Common Stock, free and
      clear of any liens, claims, encumbrances and restrictions (other than as
      provided herein) created by the Issuer upon the exercise of this Warrant, and
      (iv) use its reasonable best efforts to obtain all such authorizations,
      exemptions or consents from any public regulatory body having jurisdiction
      thereof as may be reasonably necessary to enable the Issuer to perform its
      obligations under this Warrant.

    

    (d) Loss,
      Theft, Destruction of Warrants.
      Upon
      receipt of evidence satisfactory to the Issuer of the ownership of and the
      loss,
      theft, destruction or mutilation of any Warrant and, in the case of any such
      loss, theft or destruction, upon receipt of indemnity or security satisfactory
      to the Issuer or, in the case of any such mutilation, upon surrender and
      cancellation of such Warrant, the Issuer will make and deliver, in lieu of
      such
      lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
      representing the right to purchase the same number of shares of Common
      Stock.

    

    (e) Payment
      of Taxes.
      The
      Issuer will pay any documentary stamp taxes attributable to the initial issuance
      of the Warrant Stock issuable upon exercise of this Warrant; provided,
      however,
      that
      the Issuer shall not be required to pay any tax or taxes which may be payable
      in
      respect of any transfer involved in the issuance or delivery of any certificates
      representing Warrant Stock in a name other than that of the Holder in respect
      to
      which such shares are issued.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    4. Adjustment
      of Warrant Price.
      The
      price at which such shares of Warrant Stock may be purchased upon exercise
      of
      this Warrant shall be subject to adjustment from time to time as set forth
      in
      this Section 4. The Issuer shall give the Holder notice of any event described
      below which requires an adjustment pursuant to this Section 4 in accordance
      with
      the notice provisions set forth in Section 5.

    

    (a) Recapitalization,
      Reorganization, Reclassification, Consolidation, Merger or Sale.

     

    (i)
      In
      case the Issuer after the Original Issue Date shall do any of the following
      (each, a "Triggering
      Event"):
      (a)
      consolidate or merge with or into any other Person and the Issuer shall not
      be
      the continuing or surviving corporation of such consolidation or merger, or
      (b)
      permit any other Person to consolidate with or merge into the Issuer and the
      Issuer shall be the continuing or surviving Person but, in connection with
      such
      consolidation or merger, any Capital Stock of the Issuer shall be changed into
      or exchanged for Securities of any other Person or cash or any other property,
      or (c) transfer all or substantially all of its properties or assets to any
      other Person, or (d) effect a capital reorganization or reclassification of
      its
      Capital Stock, then, and in the case of each such Triggering Event, proper
      provision shall be made so that, upon the basis and the terms and in the manner
      provided in this Warrant, the Holder of this Warrant shall be entitled upon
      the
      exercise hereof at any time after the consummation of such Triggering Event,
      to
      the extent this Warrant is not exercised prior to such Triggering Event, to
      receive at the Warrant Price in effect at the time immediately prior to the
      consummation of such Triggering Event in lieu of the Common Stock issuable
      upon
      such exercise of this Warrant prior to such Triggering Event, the Securities,
      cash and property to which such Holder would have been entitled upon the
      consummation of such Triggering Event if such Holder had exercised the rights
      represented by this Warrant immediately prior thereto (including the right
      of a
      shareholder to elect the type of consideration it will receive upon a Triggering
      Event), subject to adjustments (subsequent to such corporate action) as nearly
      equivalent as possible to the adjustments provided for elsewhere in this Section
      4. Notwithstanding the foregoing to the contrary, this Section 4(a)(i) shall
      only apply if the surviving entity pursuant to any such Triggering Event is
      a
      company has a class of equity securities registered pursuant to the Securities
      Exchange Act of 1934, as amended, and its common stock is listed or quoted
      on a
      national securities exchange, national automated quotation system or the OTC
      Bulletin Board. In the event that the surviving entity pursuant to any such
      Triggering Event is not a company that has a class of equity securities
      registered pursuant to the Securities Exchange Act of 1934, as amended, or
      its
      common stock is not listed or quoted on a national securities exchange, national
      automated quotation system or the OTC Bulletin Board, then the Holder shall
      have
      the right to demand that the Issuer pay to the Holder an amount equal to the
      value of this Warrant according to the Black-Scholes formula.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (ii) Notwithstanding
      anything contained in this Warrant to the contrary and so long as the surviving
      entity pursuant to any Triggering Event is a company that has a class of equity
      securities registered pursuant to the Securities Exchange Act of 1934, as
      amended, and its common stock is listed or quoted on a national securities
      exchange, national automated quotation system or the OTC Bulletin Board, a
      Triggering Event shall not be deemed to have occurred if, prior to the
      consummation thereof, each Person (other than the Issuer) which may be required
      to deliver any Securities, cash or property upon the exercise of this Warrant
      as
      provided herein shall assume, by written instrument delivered to, and reasonably
      satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer
      under this Warrant (and if the Issuer shall survive the consummation of such
      Triggering Event, such assumption shall be in addition to, and shall not release
      the Issuer from, any continuing obligations of the Issuer under this Warrant)
      and (B) the obligation to deliver to such Holder such Securities, cash or
      property as, in accordance with the foregoing provisions of this subsection
      (a),
      such Holder shall be entitled to receive, and such Person shall have similarly
      delivered to such Holder an opinion of counsel for such Person, which counsel
      shall be reasonably satisfactory to such Holder, or in the alternative, a
      written acknowledgement executed by the President or Chief Financial Officer
      of
      the Issuer, stating that this Warrant shall thereafter continue in full force
      and effect and the terms hereof (including, without limitation, all of the
      provisions of this subsection (a)) shall be applicable to the Securities, cash
      or property which such Person may be required to deliver upon any exercise
      of
      this Warrant or the exercise of any rights pursuant hereto. 

    

    (b) Stock
      Dividends, Subdivisions and Combinations.
      If at
      any time the Issuer shall:

    

    (i) make
      or
      issue or set a record date for the holders of the Common Stock for the purpose
      of entitling them to receive a dividend payable in, or other distribution of,
      shares of Common Stock,

     

    (ii)
       subdivide
      its outstanding shares of Common Stock into a larger number of shares of Common
      Stock, or

     

    (iii)
       combine
      its outstanding shares of Common Stock into a smaller number of shares of Common
      Stock,

    

    then
      (1)
      the number of shares of Common Stock for which this Warrant is exercisable
      immediately after the occurrence of any such event shall be adjusted to equal
      the number of shares of Common Stock which a record holder of the same number
      of
      shares of Common Stock for which this Warrant is exercisable immediately prior
      to the occurrence of such event would own or be entitled to receive after the
      happening of such event, and (2) the Warrant Price then in effect shall be
      adjusted to equal (A) the Warrant Price then in effect multiplied by the number
      of shares of Common Stock for which this Warrant is exercisable immediately
      prior to the adjustment divided by (B) the number of shares of Common Stock
      for
      which this Warrant is exercisable immediately after such
      adjustment.

    

    (c) Certain
      Other Distributions.
      If at
      any time the Issuer shall make or issue or set a record date for the holders
      of
      the Common Stock for the purpose of entitling them to receive any dividend
      or
      other distribution of:

    

    (i) cash
      (other than a cash dividend payable out of earnings or earned surplus legally
      available for the payment of dividends under the laws of the jurisdiction of
      incorporation of the Issuer),

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (ii) any
      evidences of its indebtedness, any shares of stock of any class or any other
      securities or property of any nature whatsoever (other than cash, Common Stock
      Equivalents or Additional Shares of Common Stock), or

    

    (iii) any
      warrants or other rights to subscribe for or purchase any evidences of its
      indebtedness, any shares of stock of any class or any other securities or
      property of any nature whatsoever (other than cash, Common Stock Equivalents
      or
      Additional Shares of Common Stock), 

    

    then
      (1)
      the number of shares of Common Stock for which this Warrant is exercisable
      shall
      be adjusted to equal the product of the number of shares of Common Stock for
      which this Warrant is exercisable immediately prior to such adjustment
      multiplied by a fraction (A) the numerator of which shall be the Per Share
      Market Value of Common Stock at the date of taking such record and (B) the
      denominator of which shall be such Per Share Market Value minus the amount
      allocable to one share of Common Stock of any such cash so distributable and
      of
      the fair value (as determined in good faith by the Board of Directors of the
      Issuer and supported by an opinion from an investment banking firm mutually
      agreed upon by the Issuer and the Holder) of any and all such evidences of
      indebtedness, shares of stock, other securities or property or warrants or
      other
      subscription or purchase rights so distributable, and (2) the Warrant Price
      then
      in effect shall be adjusted to equal (A) the Warrant Price then in effect
      multiplied by the number of shares of Common Stock for which this Warrant is
      exercisable immediately prior to the adjustment divided by (B) the number of
      shares of Common Stock for which this Warrant is exercisable immediately after
      such adjustment. A reclassification of the Common Stock (other than a change
      in
      par value, or from par value to no par value or from no par value to par value)
      into shares of Common Stock and shares of any other class of stock shall be
      deemed a distribution by the Issuer to the holders of its Common Stock of such
      shares of such other class of stock within the meaning of this Section 4(c)
      and,
      if the outstanding shares of Common Stock shall be changed into a larger or
      smaller number of shares of Common Stock as a part of such reclassification,
      such change shall be deemed a subdivision or combination, as the case may be,
      of
      the outstanding shares of Common Stock within the meaning of Section
      4(b). 

    

    (d) Issuance
      of Additional Shares of Common Stock.
      In the
      event the Issuer shall at any time following the Original Issue Date issue
      any
      Additional Shares of Common Stock (otherwise than as provided in the foregoing
      subsections (b) through (c) of this Section 4), at a price per share less than
      the Warrant Price then in effect or without consideration, then the Warrant
      Price upon each such issuance shall be adjusted to the price equal to the
      consideration per share paid for such Additional Shares of Common
      Stock.

    

    (e)
       Issuance
      of Common Stock Equivalents.
      If at
      any time the Issuer shall take a record of the holders of its Common Stock
      for
      the purpose of entitling them to receive a distribution of, or shall in any
      manner (whether directly or by assumption in a merger in which the Issuer is
      the
      surviving corporation) issue or sell, any Common Stock Equivalents, whether
      or
      not the rights to exchange or convert thereunder are immediately exercisable,
      and the price per share for which Common Stock is issuable upon such conversion
      or exchange shall be less than the Warrant Price in effect immediately prior
      to
      the time of such issue or sale, or if, after any such issuance of Common Stock
      Equivalents, the price per share for which Additional Shares of Common Stock
      may
      be issuable thereafter is amended or adjusted, and such price as so amended
      shall be less than the Warrant Price in effect at the time of such amendment
      or
      adjustment, then the Warrant Price then in effect shall be adjusted as provided
      in Section 4(d). No further adjustments of the number of shares of Common Stock
      for which this Warrant is exercisable and the Warrant Price then in effect
      shall
      be made upon the actual issue of such Common Stock upon conversion or exchange
      of such Common Stock Equivalents.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (f) Other
      Provisions applicable to Adjustments under this Section.
      The
      following provisions shall be applicable to the making of adjustments of the
      number of shares of Common Stock for which this Warrant is exercisable and
      the
      Warrant Price then in effect provided for in this Section 4:

    

    (i) Computation
      of Consideration.
      To the
      extent that any Additional Shares of Common Stock or any Common Stock
      Equivalents (or any warrants or other rights therefor) shall be issued for
      cash
      consideration, the consideration received by the Issuer therefor shall be the
      amount of the cash received by the Issuer therefor, or, if such Additional
      Shares of Common Stock or Common Stock Equivalents are offered by the Issuer
      for
      subscription, the subscription price, or, if such Additional Shares of Common
      Stock or Common Stock Equivalents are sold to underwriters or dealers for public
      offering without a subscription offering, the initial public offering price
      (in
      any such case subtracting any amounts paid or receivable for accrued interest
      or
      accrued dividends and without taking into account any compensation, discounts
      or
      expenses paid or incurred by the Issuer for and in the underwriting of, or
      otherwise in connection with, the issuance thereof). In connection with any
      merger or consolidation in which the Issuer is the surviving corporation (other
      than any consolidation or merger in which the previously outstanding shares
      of
      Common Stock of the Issuer shall be changed to or exchanged for the stock or
      other securities of another corporation), the amount of consideration therefore
      shall be, deemed to be the fair value of such portion of the assets and business
      of the nonsurviving corporation as the Board may determine to be attributable
      to
      such shares of Common Stock or Common Stock Equivalents, as the case may be.
      Such determination of the fair value of such consideration shall be made by
      an
      Independent Appraiser. The consideration for any Additional Shares of Common
      Stock issuable pursuant to the terms of any Common Stock Equivalents shall
      be
      the consideration received by the Issuer for issuing such Common Stock
      Equivalents, plus the additional consideration, if any, payable to the Issuer
      upon the exercise of the right of conversion or exchange in such Common Stock
      Equivalents. In the event of any consolidation or merger of the Issuer in which
      the Issuer is not the surviving corporation or in which the previously
      outstanding shares of Common Stock of the Issuer shall be changed into or
      exchanged for the stock or other securities of another corporation, or in the
      event of any sale of all or substantially all of the assets of the Issuer for
      stock or other securities of any corporation, the Issuer shall be deemed to
      have
      issued a number of shares of its Common Stock for stock or securities or other
      property of the other corporation computed on the basis of the actual exchange
      ratio on which the transaction was predicated, and for a consideration equal
      to
      the fair market value on the date of such transaction of all such stock or
      securities or other property of the other corporation. In the event any
      consideration received by the Issuer for any securities consists of property
      other than cash, the fair market value thereof at the time of issuance or as
      otherwise applicable shall be as determined in good faith by the Board. In
      the
      event Common Stock is issued with other shares or securities or other assets
      of
      the Issuer for consideration which covers both, the consideration computed
      as
      provided in this Section 4(f)(i) shall be allocated among such securities and
      assets as determined in good faith by the Board.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (ii) When
      Adjustments to Be Made.
      The
      adjustments required by this Section 4 shall be made whenever and as often
      as
      any specified event requiring an adjustment shall occur, except that any
      adjustment of the number of shares of Common Stock for which this Warrant is
      exercisable that would otherwise be required may be postponed (except in the
      case of a subdivision or combination of shares of the Common Stock, as provided
      for in Section 4(b)) up to, but not beyond the date of exercise if such
      adjustment either by itself or with other adjustments not previously made adds
      or subtracts less than one percent (1%) of the shares of Common Stock for which
      this Warrant is exercisable immediately prior to the making of such adjustment.
      Any adjustment representing a change of less than such minimum amount (except
      as
      aforesaid) which is postponed shall be carried forward and made as soon as
      such
      adjustment, together with other adjustments required by this Section 4 and
      not
      previously made, would result in a minimum adjustment or on the date of
      exercise. For the purpose of any adjustment, any specified event shall be deemed
      to have occurred at the close of business on the date of its
      occurrence.

    

    (iii) Fractional
      Interests.
      In
      computing adjustments under this Section 4, fractional interests in Common
      Stock
      shall be taken into account to the nearest one one-hundredth (1/100th)
      of a
      share.

    

    (iv) When
      Adjustment Not Required.
      If the
      Issuer shall take a record of the holders of its Common Stock for the purpose
      of
      entitling them to receive a dividend or distribution or subscription or purchase
      rights and shall, thereafter and before the distribution to stockholders
      thereof, legally abandon its plan to pay or deliver such dividend, distribution,
      subscription or purchase rights, then thereafter no adjustment shall be required
      by reason of the taking of such record and any such adjustment previously made
      in respect thereof shall be rescinded and annulled.

     

    (g) Form
      of Warrant after Adjustments.
      The
      form of this Warrant need not be changed because of any adjustments in the
      Warrant Price or the number and kind of Securities purchasable upon the exercise
      of this Warrant.

    

    (h) Escrow
      of Warrant Stock.
      If
      after any property becomes distributable pursuant to this Section 4 by reason
      of
      the taking of any record of the holders of Common Stock, but prior to the
      occurrence of the event for which such record is taken, and the Holder exercises
      this Warrant, any shares of Common Stock issuable upon exercise by reason of
      such adjustment shall be deemed the last shares of Common Stock for which this
      Warrant is exercised (notwithstanding any other provision to the contrary
      herein) and such shares or other property shall be held in escrow for the Holder
      by the Issuer to be issued to the Holder upon and to the extent that the event
      actually takes place, upon payment of the current Warrant Price. Notwithstanding
      any other provision to the contrary herein, if the event for which such record
      was taken fails to occur or is rescinded, then such escrowed shares shall be
      cancelled by the Issuer and escrowed property returned.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    5. Notice
      of Adjustments.
      Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant
      to
      Section 4 hereof (for purposes of this Section 5, each an "adjustment"),
      the
      Issuer shall cause its Chief Financial Officer to prepare and execute a
      certificate setting forth, in reasonable detail, the event requiring the
      adjustment, the amount of the adjustment, the method by which such adjustment
      was calculated (including a description of the basis on which the Board made
      any
      determination hereunder), and the Warrant Price and Warrant Share Number after
      giving effect to such adjustment, and shall cause copies of such certificate
      to
      be delivered to the Holder of this Warrant promptly after each adjustment.
      Any
      dispute between the Issuer and the Holder of this Warrant with respect to the
      matters set forth in such certificate may at the option of the Holder of this
      Warrant be submitted to a national or regional accounting firm reasonably
      acceptable to the Issuer and the Holder, provided
      that the
      Issuer shall have ten (10) days after receipt of notice from such Holder of
      its
      selection of such firm to object thereto, in which case such Holder shall select
      another such firm and the Issuer shall have no such right of objection. The
      firm
      selected by the Holder of this Warrant as provided in the preceding sentence
      shall be instructed to deliver a written opinion as to such matters to the
      Issuer and such Holder within thirty (30) days after submission to it of such
      dispute. Such opinion shall be final and binding on the parties hereto. The
      costs and expenses of the initial accounting firm shall be paid equally by
      the
      Issuer and the Holder and, in the case of an objection by the Issuer, the costs
      and expenses of the subsequent accounting firm shall be paid in full by the
      Issuer.

    

    6. Fractional
      Shares.
      No
      fractional shares of Warrant Stock will be issued in connection with any
      exercise hereof, but in lieu of such fractional shares, the Issuer shall round
      the number of shares to be issued upon exercise up to the nearest whole number
      of shares.

    

    7. Ownership
      Cap and Certain Exercise Restrictions.
      (a)
      Notwithstanding anything to the contrary set forth in this Warrant, at no time
      may a Holder of this Warrant exercise this Warrant if the number of shares
      of
      Common Stock to be issued pursuant to such exercise would exceed, when
      aggregated with all other shares of Common Stock owned by such Holder at such
      time, the number of shares of Common Stock which would result in such Holder
      beneficially owning (as determined in accordance with Section 13(d) of the
      Exchange Act and the rules thereunder) in excess of 4.9% of the then issued
      and
      outstanding shares of Common Stock; provided,
      however,
      that
      upon a holder of this Warrant providing the Issuer with sixty-one (61) days
      notice (pursuant to Section 13 hereof) (the "Waiver
      Notice")
      that
      such Holder would like to waive this Section 7(a) with regard to any or all
      shares of Common Stock issuable upon exercise of this Warrant, this Section
      7(a)
      will be of no force or effect with regard to all or a portion of the Warrant
      referenced in the Waiver Notice; provided,
      further,
      that
      this provision shall be of no further force or effect during the sixty-one
      (61)
      days immediately preceding the expiration of the term of this
      Warrant.

    

    (b) The
      Holder may not exercise the Warrant hereunder to the extent such exercise would
      result in the Holder beneficially owning (as determined in accordance with
      Section 13(d) of the Exchange Act and the rules thereunder) in excess of 9.9%
      of
      the then issued and outstanding shares of Common Stock, including shares
      issuable upon exercise of the Warrant held by the Holder after application
      of
      this Section; provided,
      however,
      that
      upon a holder of this Warrant providing the Issuer with a Waiver Notice that
      such holder would like to waive this Section 7(b) with regard to any or all
      shares of Common Stock issuable upon exercise of this Warrant, this Section
      7(b)
      shall be of no force or effect with regard to those shares of Warrant Stock
      referenced in the Waiver Notice; provided,
      further,
      that
      this provision shall be of no further force or effect during the sixty-one
      (61)
      days immediately preceding the expiration of the term of this
      Warrant.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    8. Call.
      Notwithstanding
      anything herein to the contrary, the Issuer may at any time following the
      Original Issue Date call up to one hundred percent (100%) of this Warrant then
      still outstanding by providing the Holder of this Warrant written notice
      pursuant to Section 13 (the “Call
      Notice”);
      provided,
      that,
      in
      connection with any call by the Issuer under this Section 8, (A) the Per Share
      Market Value of the Common Stock has been greater than $0.20 per share for
      a
      period of ten (10) consecutive Trading Days immediately prior to the date of
      delivery of the Call Notice (a “Call
      Notice Period”)
      and
      the
      average daily trading volume during the Call Notice Period exceeds 1,500,000
      shares of Common Stock;
      (B)
      either
      the shares of Common Stock are eligible for resale pursuant to Rule 144 under
      the Securities Act or the
      Registration Statement is
      then
      in effect and has been effective, without lapse or suspension of any kind,
      for a
      period of twenty (20) consecutive calendar days, (C) trading in the Common
      Stock
      shall not have been suspended by the Securities and Exchange Commission or
      the
      OTC Bulletin Board (or other exchange or market on which the Common Stock is
      trading), (D) the Issuer is in material compliance with the terms and conditions
      of this Warrant and (E) the
      Issuer is not in possession of any material non-public information;
      provided,
      further,
      that
      the Registration Statement must be effective from the date of delivery of the
      Call Notice until the date which is the later of (i) the date the Holder
      exercises the Warrant pursuant to the Call Notice and (ii) the 20th
      day
      after the Holder receives the Call Notice (the “Early
      Termination Date”).
      The
      rights and privileges granted pursuant to this Warrant with respect to the
      shares of Warrant Stock subject to the Call Notice (the “Called
      Warrant Shares”)
      shall
      expire on the Early Termination Date if this Warrant is not exercised with
      respect to such Called Warrant Shares prior to such Early Termination Date.
      In
      the event this Warrant is not exercised with respect to the Called Warrant
      Shares, the Issuer shall remit to the Holder of this Warrant (i) $.001 per
      Called Warrant Share and (ii) a new Warrant representing the number of shares
      of
      Warrant Stock, if any, which shall not have been subject to the Call Notice
      upon
      the Holder tendering to the Issuer the applicable Warrant
      certificate.
      Notwithstanding anything in the foregoing to the contrary, if the Holder may
      not
      exercise this Warrant as a result of the restrictions contained in Section
      7
      hereof, the Call Notice shall be deemed null and void and shall not be deemed
      effective until the date that the Holder may exercise this Warrant in accordance
      with Section 7 hereof.

    

    9. Definitions.
      For the
      purposes of this Warrant, the following terms have the following
      meanings:

    

    "Additional
      Shares of Common Stock"
      means
      all shares of Common Stock issued by the Issuer after the Original Issue Date,
      and all shares of Other Common, if any, issued by the Issuer after the Original
      Issue Date, except: (i) securities issued (other than for cash) in connection
      with a merger, acquisition, or consolidation, (ii) securities issued pursuant
      to
      the conversion or exercise of convertible or exercisable securities issued
      or
      outstanding on or prior to the date hereof or issued pursuant to the Purchase
      Agreement or the Share Exchange Transaction (as defined in the Purchase
      Agreement), (iii) the Warrant Stock, (iv) securities issued in connection with
      bona fide strategic license agreements or other partnering arrangements so
      long
      as such issuances are not for the purpose of raising capital, (v) Common Stock
      issued or the issuance or grants of options to purchase Common Stock pursuant
      to
      the Issuer’s stock option plans and employee stock purchase plans as they now
      exist on the Original Issue Date, (vi) any warrants issued to the placement
      agent and its designees for the transactions contemplated by the Purchase
      Agreement, (vii) Common Stock issued in connection with consulting or advisory
      services not in excess of 50,000,000 shares, and (viii) the payment of any
      principal in shares of Common Stock pursuant to the Notes or the promissory
      notes issued pursuant to the Share Exchange Transaction. 

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    "Board"
      shall
      mean the Board of Directors of the Issuer.

    

    "Capital
      Stock"
      means
      and includes (i) any and all shares, interests, participations or other
      equivalents of or interests in (however designated) corporate stock, including,
      without limitation, shares of preferred or preference stock, (ii) all
      partnership interests (whether general or limited) in any Person which is a
      partnership, (iii) all membership interests or limited liability company
      interests in any limited liability company, and (iv) all equity or ownership
      interests in any Person of any other type.

    

    "Certificate
      of Incorporation"
      means
      the Certificate of Incorporation of the Issuer as in effect on the Original
      Issue Date, and as hereafter from time to time amended, modified, supplemented
      or restated in accordance with the terms hereof and thereof and pursuant to
      applicable law. 

    

    "Common
      Stock"
      means
      the Common Stock, par value $.01 per share, of the Issuer and any other Capital
      Stock into which such stock may hereafter be changed.

    

    "Common
      Stock Equivalent"
      means
      any Convertible Security or warrant, option or other right to subscribe for
      or
      purchase any Additional Shares of Common Stock or any Convertible
      Security.

    

    "Convertible
      Securities"
      means
      evidences of Indebtedness, shares of Capital Stock or other Securities which
      are
      or may be at any time convertible into or exchangeable for Additional Shares
      of
      Common Stock. The term "Convertible Security" means one of the Convertible
      Securities.

    

    "Governmental
      Authority"
      means
      any governmental, regulatory or self-regulatory entity, department, body,
      official, authority, commission, board, agency or instrumentality, whether
      federal, state or local, and whether domestic or foreign.

    

    "Holders"
      mean
      the Persons who shall from time to time own any Warrant. The term "Holder"
      means
      one of the Holders.

    

    "Independent
      Appraiser"
      means a
      nationally recognized or major regional investment banking firm or firm of
      independent certified public accountants of recognized standing (which may
      be
      the firm that regularly examines the financial statements of the Issuer) that
      is
      regularly engaged in the business of appraising the Capital Stock or assets
      of
      corporations or other entities as going concerns, and which is not affiliated
      with either the Issuer or the Holder of any Warrant.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    "Issuer"
      means
      Remote Dynamics, Inc., a Delaware corporation, and its successors. 

    

    "Majority
      Holders"
      means
      at any time the Holders of Warrants exercisable for a majority of the shares
      of
      Warrant Stock then issuable under the outstanding Warrants at that
      time.

    

    “Notes”
means
      the series B subordinated secured convertible promissory notes issued
      by
      the Issuer to the Purchasers pursuant to the Purchase Agreement.

    

    "Original
      Issue Date"
      means
      May __, 2008.

    

    "OTC
      Bulletin Board"
      means
      the over-the-counter electronic bulletin board.

    

    "Other
      Common"
      means
      any other Capital Stock of the Issuer of any class which shall be authorized
      at
      any time after the date of this Warrant (other than Common Stock), have the
      right to participate in the distribution of earnings and assets of the Issuer
      without limitation as to amount and are issuable upon conversion, exchange
      or
      exercise of any debt or equity securities of the Issuer.

    

    “Outstanding
      Common Stock”
means,
      at any given time, the aggregate amount of outstanding shares of Common Stock,
      assuming full exercise, conversion or exchange (as applicable) of all options,
      warrants and other Securities which are convertible into or exercisable or
      exchangeable for, and any right to subscribe for, shares of Common Stock that
      are outstanding at such time.

    

    “Outstanding
      Common Stock”
means,
      at any given time, the aggregate amount of outstanding shares of Common Stock,
      assuming full exercise, conversion or exchange (as applicable) of all options,
      warrants and other Securities which are convertible into or exercisable or
      exchangeable for, and any right to subscribe for, shares of Common Stock that
      are outstanding at such time.

    

    "Person"
      means
      an individual, corporation, limited liability company, partnership, joint stock
      company, trust, unincorporated organization, joint venture, Governmental
      Authority or other entity of whatever nature.

    

    "Per
      Share Market Value"
      means
      on any particular date (a) the VWAP, or (b) if the Common Stock is not then
      publicly traded the fair market value of a share of Common Stock as determined
      by an Independent Appraiser selected in good faith by the Majority Holders;
      provided,
      however,
      that
      the Issuer, after receipt of the determination by such Independent Appraiser,
      shall have the right to select an additional Independent Appraiser, in which
      case, the fair market value shall be equal to the average of the determinations
      by each such Independent Appraiser; and provided,
      further
      that all
      determinations of the Per Share Market Value shall be appropriately adjusted
      for
      any stock dividends, stock splits or other similar transactions during such
      period. The determination of fair market value by an Independent Appraiser
      shall
      be based upon the fair market value of the Issuer determined on a going concern
      basis as between a willing buyer and a willing seller and taking into account
      all relevant factors determinative of value, and shall be final and binding
      on
      all parties. In determining the fair market value of any shares of Common Stock,
      no consideration shall be given to any restrictions on transfer of the Common
      Stock imposed by agreement or by federal or state securities laws, or to the
      existence or absence of, or any limitations on, voting rights.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    "Purchase
      Agreement"
      means
      the Note and Warrant Purchase Agreement dated as of November 30, 2006, among
      the
      Issuer and the Purchasers, as amended.

    

    "Purchasers"
      means
      the purchasers of the Notes and
      the
      Warrants issued by the Issuer pursuant to the Purchase Agreement.

    

    "Securities"
      means
      any debt or equity securities of the Issuer, whether now or hereafter
      authorized, any instrument convertible into or exchangeable for Securities
      or a
      Security, and any option, warrant or other right to purchase or acquire any
      Security. "Security" means one of the Securities.

    

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended, or any similar federal statute then
      in
      effect.

    

    "Subsidiary"
      means
      any corporation at least 50% of whose outstanding Voting Stock shall at the
      time
      be owned directly or indirectly by the Issuer or by one or more of its
      Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

    

    "Term"
      has the
      meaning specified in Section 1 hereof.

    

    "Trading
      Day"
      means
      (a) a day on which the Common Stock is traded on the OTC Bulletin Board, or
      (b)
      if the Common Stock is not traded on the OTC Bulletin Board, a day on which
      the
      Common Stock is quoted in the over-the-counter “pink sheets” market as reported
      by the National Quotation Bureau Incorporated (or any similar organization
      or
      agency succeeding its functions of reporting prices); provided,
      however,
      that in
      the event that the Common Stock is not listed or quoted as set forth in (a)
      or
      (b) hereof, then Trading Day shall mean any day except Saturday, Sunday and
      any
      day which shall be a legal holiday or a day on which banking institutions in
      the
      State of New York are authorized or required by law or other government action
      to close.

    

    "Voting
      Stock"
      means,
      as applied to the Capital Stock of any corporation, Capital Stock of any class
      or classes (however designated) having ordinary voting power for the election
      of
      a majority of the members of the Board of Directors (or other governing body)
      of
      such corporation, other than Capital Stock having such power only by reason
      of
      the happening of a contingency.

    

    “VWAP”
means,
      for any date, (i) the daily volume weighted average price of the Common Stock
      for such date on the OTC Bulletin Board as reported by Bloomberg Financial
      L.P.
      (based on a Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time);
      (ii) if the Common Stock is not then listed or quoted on the OTC Bulletin
      Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by the Pink Sheets, LLC (or a similar organization or agency
      succeeding to its functions of reporting prices), then the average of the “Pink
      Sheet” quotes for the five (5) Trading Days preceding the date of determination;
      or (iii) in all other cases, the fair market value of a share of Common
      Stock as determined by an independent appraiser selected in good faith by the
      Holder and reasonably acceptable to the Maker.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    "Warrants"
      means
      the Warrants issued and sold pursuant to the Purchase Agreement, including,
      without limitation, this Warrant, and any other warrants of like tenor issued
      in
      substitution or exchange for any thereof pursuant to the provisions of Section
      2(c), 2(d) or 2(e) hereof or of any of such other Warrants. 

    

    "Warrant
      Price"
      initially means $1.50, as such price may be adjusted from time to time as shall
      result from the adjustments specified in this Warrant, including Section 4
      hereto.

    

    "Warrant
      Share Number"
      means
      at any time the aggregate number of shares of Warrant Stock which may at such
      time be purchased upon exercise of this Warrant, after giving effect to all
      prior adjustments and increases to such number made or required to be made
      under
      the terms hereof.

    

    "Warrant
      Stock"
      means
      Common Stock issuable upon exercise of any Warrant or Warrants or otherwise
      issuable pursuant to any Warrant or Warrants.

    

    10. Other
      Notices.
      In case
      at any time:

    

    
      	 	
              (A)

            	
              the
                Issuer shall make any distributions to the holders of Common Stock;
                or

            

    

    

    
      	 	
              (B)

            	
              the
                Issuer shall authorize the granting to all holders of its Common
                Stock of
                rights to subscribe for or purchase any shares of Capital Stock of
                any
                class or other rights; or

            

    

    

    
      	 	
              (C)

            	
              there
                shall be any reclassification of the Capital Stock of the Issuer;
                or

            

    

    

    
      	 	
              (D)

            	
              there
                shall be any capital reorganization by the Issuer;
                or

            

    

    

    
      	 	
              (E)

            	
              there
                shall be any (i) consolidation or merger involving the Issuer or
                (ii)
                sale, transfer or other disposition of all or substantially all of
                the
                Issuer's property, assets or business (except a merger or other
                reorganization in which the Issuer shall be the surviving corporation
                and
                its shares of Capital Stock shall continue to be outstanding and
                unchanged
                and except a consolidation, merger, sale, transfer or other disposition
                involving a wholly-owned Subsidiary);
                or

            

    

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (F)

            	
              there
                shall be a voluntary or involuntary dissolution, liquidation or winding-up
                of the Issuer or any partial liquidation of the Issuer or distribution
                to
                holders of Common Stock;

            

    

    

    then,
      in
      each of such cases, the Issuer shall give written notice to the Holder of the
      date on which (i) the books of the Issuer shall close or a record shall be
      taken
      for such dividend, distribution or subscription rights or (ii) such
      reorganization, reclassification, consolidation, merger, disposition,
      dissolution, liquidation or winding-up, as the case may be, shall take place.
      Such notice also shall specify the date as of which the holders of Common Stock
      of record shall participate in such dividend, distribution or subscription
      rights, or shall be entitled to exchange their certificates for Common Stock
      for
      securities or other property deliverable upon such reorganization,
      reclassification, consolidation, merger, disposition, dissolution, liquidation
      or winding-up, as the case may be. Such notice shall be given no sooner than
      fifteen (15) days and not later than ten (10) days prior to the record date
      or
      the date on which the Issuer's transfer books are closed in respect thereto.
      This Warrant entitles the Holder to receive copies of all financial and other
      information distributed or required to be distributed to the holders of the
      Common Stock.

    

    11. Amendment
      and Waiver.
      Any
      term, covenant, agreement or condition in this Warrant may be amended, or
      compliance therewith may be waived (either generally or in a particular instance
      and either retroactively or prospectively), by a written instrument or written
      instruments executed by the Issuer and the Majority Holders; provided,
      however,
      that no
      such amendment or waiver shall reduce the Warrant Share Number, increase the
      Warrant Price, shorten the period during which this Warrant may be exercised
      or
      modify any provision of this Section 11 without the consent of the Holder of
      this Warrant. No consideration shall be offered or paid to any person to amend
      or consent to a waiver or modification of any provision of this Warrant unless
      the same consideration is also offered to all holders of the
      Warrants.

    

    12. Governing
      Law; Jurisdiction.
      This
      Warrant shall be governed by and construed in accordance with the internal
      laws
      of the State of New York, without giving effect to any of the conflicts of
      law
      principles which would result in the application of the substantive law of
      another jurisdiction. This Warrant shall not be interpreted or construed with
      any presumption against the party causing this Warrant to be drafted. The Issuer
      and the Holder agree that venue for any dispute arising under this Warrant
      will
      lie exclusively in the state or federal courts located in New York County,
      New
      York, and the parties irrevocably waive any right to raise forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The Issuer and the Holder
      irrevocably consent to personal jurisdiction in the state and federal courts
      of
      the state of New York. The Issuer and the Holder consent to process being served
      in any such suit, action or proceeding by mailing a copy thereof to such party
      at the address in effect for notices to it under this Warrant and agrees that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing in this Section 12 shall affect or limit any right to serve
      process in any other manner permitted by law. The Issuer and the Holder hereby
      agree that the prevailing party in any suit, action or proceeding arising out
      of
      or relating to this Warrant or the Purchase Agreement, shall be entitled to
      reimbursement for reasonable legal fees from the non-prevailing party. The
      parties hereby waive all rights to a trial by jury.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    13. Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earlier of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile telephone number specified for
      notice prior to 5:00 p.m., eastern time, on a Trading Day, (ii) the Trading
      Day
      after the date of transmission, if such notice or communication is delivered
      via
      facsimile at the facsimile telephone number specified for notice later than
      5:00
      p.m., eastern time, on any date and earlier than 11:59 p.m., eastern time,
      on
      such date, (iii) the Trading Day following the date of mailing, if sent by
      overnight delivery by a nationally recognized overnight courier service or
      (iv)
      actual receipt by the party to whom such notice is required to be given. The
      addresses for such communications shall be with respect to the Holder of this
      Warrant or of Warrant Stock issued pursuant hereto, addressed to such Holder
      at
      its last known address or facsimile number appearing on the books of the Issuer
      maintained for such purposes, or with respect to the Issuer, addressed
      to:

     

    Remote
      Dynamics, Inc.

    200
      Chisholm Place, Suite 120

    Plano,
      Texas 75075

    Attention:
      Chief Executive Officer

    Tel.
      No.:
      (972) 395-5579

    Fax
      No.:
      (972) 423-1620

    

    with
      copies (which copies 

    shall
      not
      constitute notice

    to
      the
      Issuer) to:
                               Richardson
      & Patel LLP

    405
      Lexington Avenue, 26th
      Floor

    New
      York,
      New York 10174

    Attention:
      Jody R. Samuels

    Tel.
      No.: (212) 907-6686

    Fax
      No.: (212) 907-6687

    

    Copies
      of
      notices to the Holder shall be sent to Kramer Levin Naftalis & Frankel LLP,
      1177 Avenue of the Americas, New York, New York 10036, Attention: Christopher
      S.
      Auguste, Tel. No.: (212) 715-9100, Fax. No.: (212) 715-8000. Any party hereto
      may from time to time change its address for notices by giving at least ten
      (10)
      days written notice of such changed address to the other party
      hereto.

    

    14. Warrant
      Agent.
      The
      Issuer may, by written notice to each Holder of this Warrant, appoint an agent
      for the purpose of issuing shares of Warrant Stock on the exercise of this
      Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant
      pursuant to subsection (d) of Section 2 hereof or replacing this Warrant
      pursuant to subsection (d) of Section 3 hereof, or any of the foregoing, and
      thereafter any such issuance, exchange or replacement, as the case may be,
      shall
      be made at such office by such agent.

    

    15. Remedies.
      The
      Issuer stipulates that the remedies at law of the Holder of this Warrant in
      the
      event of any default or threatened default by the Issuer in the performance
      of
      or compliance with any of the terms of this Warrant may not be adequate and
      that, to the fullest extent permitted by law, such terms may be specifically
      enforced by a decree for the specific performance of any agreement contained
      herein or by an injunction against a violation of any of the terms hereof or
      otherwise.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    16. Successors
      and Assigns.
      This
      Warrant and the rights evidenced hereby shall inure to the benefit of and be
      binding upon the successors and assigns of the Issuer, the Holder hereof and
      (to
      the extent provided herein) the Holders of Warrant Stock issued pursuant hereto,
      and shall be enforceable by any such Holder or Holder of Warrant
      Stock.

    

    17. Modification
      and Severability.
      If, in
      any action before any court or agency legally empowered to enforce any provision
      contained herein, any provision hereof is found to be unenforceable, then such
      provision shall be deemed modified to the extent necessary to make it
      enforceable by such court or agency. If any such provision is not enforceable
      as
      set forth in the preceding sentence, the unenforceability of such provision
      shall not affect the other provisions of this Warrant, but this Warrant shall
      be
      construed as if such unenforceable provision had never been contained
      herein.

     

    18. Headings.
      The
      headings of the Sections of this Warrant are for convenience of reference only
      and shall not, for any purpose, be deemed a part of this
      Warrant.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Issuer has executed this Series F-4 Warrant as of the
      day
      and year first above written.

    

      
        	
                REMOTE
                  DYNAMICS, INC.

              
	 	 
	
                By: 

              	 
	 	
                Name:
                  Gary Hallgren

              
	 	
                Title: 
                   Chief Executive Officer

              

      

    

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    EXERCISE
      FORM

    SERIES
      F-4 WARRANT

    

    REMOTE
      DYNAMICS, INC.

    

    The
      undersigned _______________, pursuant to the provisions of the within Warrant,
      hereby elects to purchase _____ shares of Common Stock of Remote Dynamics,
      Inc.
      covered by the within Warrant.

    

      
        	
                Dated:
                  _________________

              	
                Signature         
                   ___________________________

              
	 	 
	 	
                Address

              

      

    
      Number
        of
        shares of Common Stock beneficially owned or deemed beneficially owned by
        the
        Holder on the date of Exercise: _________________________

    

    

    The
      undersigned intends that payment of the Warrant Price shall be made as (check
      one): 

     

    Cash
      Exercise_______ 

     

    Cashless
      Exercise_______

     

    If
      the
      Holder has elected a Cash Exercise, the Holder shall pay the sum of $________
      by
      certified or official bank check (or via wire transfer) to the Issuer in
      accordance with the terms of the Warrant. 

     

    If
      the
      Holder has elected a Cashless Exercise, a certificate shall be issued to the
      Holder for the number of shares equal to the whole number portion of the product
      of the calculation set forth below, which is ___________. The Company shall
      pay
      a cash adjustment in respect of the fractional portion of the product of the
      calculation set forth below in an amount equal to the product of the fractional
      portion of such product and the Per Share Market Value on the date of exercise,
      which product is ____________.

    
      

      X
        = Y -
(A)(Y)

                    
        B

    

     

    Where: 

    

    The
      number of shares of Common Stock to be issued to the Holder
      __________________(“X”).

    

    The
      number of shares of Common Stock purchasable upon exercise of all of the Warrant
      or, if only a portion of the Warrant is being exercised, the portion of the
      Warrant being exercised ___________________________ (“Y”). 

    

    The
      Warrant Price ______________ (“A”). 

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    The
      Per
      Share Market Value of one share of Common Stock _______________________
      (“B”).

    

    ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, _________________ hereby sells, assigns and transfers unto
      __________________ the within Warrant and all rights evidenced thereby and
      does
      irrevocably constitute and appoint _____________, attorney, to transfer the
      said
      Warrant on the books of the within named corporation.

    

    

      
        	
                Dated:
                  _________________

              	
                Signature          ___________________________

              
	 	 
	 	
                Address

              

      

    

    
    

     

    PARTIAL
      ASSIGNMENT

    

    FOR
      VALUE
      RECEIVED, _________________ hereby sells, assigns and transfers unto
      __________________ the right to purchase _________ shares of Warrant Stock
      evidenced by the within Warrant together with all rights therein, and does
      irrevocably constitute and appoint ___________________, attorney, to transfer
      that part of the said Warrant on the books of the within named
      corporation.

    

      
        	
                Dated:
                  _________________

              	
                Signature          ___________________________

              
	 	 
	 	
                Address

              

      

    

     

    FOR
      USE
      BY THE ISSUER ONLY:

    

    This
      Warrant No. W-F-4-06-5D-# canceled (or transferred or exchanged) this _____
      day
      of ___________, _____, shares of Common Stock issued therefore in the name
      of
      _______________, Warrant No. W-F-4-06-5D-# issued for ____ shares of Common
      Stock in the name of _______________.

     

    
      
        
        

      

      
        -23-DOV
      PHARMACEUTICAL, INC.

    

    2007
      STOCK AWARD AND INCENTIVE PLAN

     

    1.
      Purpose.
      The
      purpose of this 2007 Stock Award and Incentive Plan (the “Plan”) is to aid DOV
      Pharmaceutical, Inc., a Delaware corporation (together with its successors
      and
      assigns, the “Company”), in attracting, retaining, motivating and rewarding
      employees, non-employee directors, and other service providers of the Company
      or
      its subsidiaries or affiliates, to provide for equitable and competitive
      compensation opportunities, to recognize individual contributions and reward
      achievement of Company goals, and promote the creation of long-term value for
      stockholders by closely aligning the interests of Participants with those of
      stockholders. The Plan authorizes stock-based and cash-based incentives for
      Participants. 

    

    2.
      Definitions.
      In
      addition to the terms defined in Section 1 above and elsewhere in the Plan,
      the
      following capitalized terms used in the Plan have the respective meanings set
      forth in this Section: 

    

    (a)
      “Annual Limit” shall have the meaning specified in Section 5(b). 

    

    (b)
      “Award” means any Option, SAR, Restricted Stock, Deferred Stock, Stock granted
      as a bonus or in lieu of another award, Dividend Equivalent, Other Stock-Based
      Award, Performance Award, together with any related right or interest, granted
      to a Participant under the Plan. 

    

    (c)
      “Beneficiary” means the legal representatives of the Participant's estate
      entitled by will or the laws of descent and distribution to receive the benefits
      under a Participant's Award upon a Participant's death, provided that, if and
      to
      the extent authorized by the Committee, a Participant may be permitted to
      designate a Beneficiary, in which case the “Beneficiary” instead will be the
      person, persons, trust or trusts (if any are then surviving) which have been
      designated by the Participant in his or her most recent written and duly filed
      beneficiary designation to receive the benefits specified under the
      Participant's Award upon such Participant's death. Unless otherwise determined
      by the Committee, any designation of a Beneficiary other than a Participant's
      spouse shall be subject to the written consent of such spouse. 

    

    (d)
      “Board” means the Company's Board of Directors. 

    

    (e)
      “Code” means the Internal Revenue Code of 1986, as amended. References to any
      provision of the Code or regulation thereunder shall include any successor
      provisions and regulations, and also includes any applicable guidance or
      pronouncement of the Department of the Treasury and Internal Revenue Service.
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)
      “Committee” means the Compensation Committee of the Board, the composition and
      governance of which is established in the Committee's Charter as approved from
      time to time by the Board and subject to other corporate governance documents
      of
      the Company. No action of the Committee shall be void or deemed to be without
      authority due to the failure of any member, at the time the action was taken,
      to
      meet any qualification standard set forth in the Committee Charter or this
      Plan.
      The full Board may perform any function of the Committee hereunder (except
      to
      the extent limited under any stock exchange or marketplace rules as may then
      be
      applicable), in which case the term “Committee” shall refer to the Board.

    

    (g)
      “Covered Employee” means an Eligible Person who is a Covered Employee as
      specified in Section 11(j). 

    

    (h)
      “Deferred Stock” means a right, granted under this Plan, to receive Stock or
      other Awards or a combination thereof at the end of a specified period, subject
      to any vesting requirement as may be specified by the Committee. 

    

    (i)
      “Dividend Equivalent” means a right, granted under this Plan, to receive cash,
      Stock, other Awards or other property equal in value to all or a specified
      portion of the dividends paid with respect to a specified number of shares
      of
      Stock. 

    

    (j)
      “Effective Date” means the effective date specified in Section 11(p).

    

    (k)
      “Eligible Person” has the meaning specified in Section 5. 

    

    (l)
      “Exchange Act” means the Securities Exchange Act of 1934, as amended. References
      to any provision of the Exchange Act or rule (including a proposed rule)
      thereunder shall include any successor provisions and rules. 

    

    (m)
“Fair
      Market Value” means the fair market value of Stock, Awards or other property as
      determined in good faith by the Committee or under procedures established by
      the
      Committee. Unless otherwise determined by the Committee, if the Stock trades
      on
      a national securities exchange, the Fair Market Value on any given date shall
      be
      the reported closing sale price on such date, and if the Stock does not trade
      on
      any national securities exchange but is admitted to trading on the National
      Association of Securities Dealers, Inc. Automated Quotation System (“NASDAQ”),
      the Fair Market Value on any given date shall be the closing sale price as
      reported by NASDAQ on such date or, if no such closing sale price information
      is
      available, the average of the highest bid and lowest asked prices for the Stock
      reported on such date. For any date that is not a trading day, the Fair Market
      Value of the Stock for such date will be determined by using the closing sale
      price or the average of the highest bid and lowest asked prices, as appropriate,
      for the immediately preceding trading day. 

    

    (n)
“409A
      Award” means an Award that constitutes a deferral of compensation under Code
      Section 409A and regulations thereunder and includes, without limitation, an
      Option or Stock Appreciation Right under the Plan that is materially modified
      and deemed a new grant at a time when the per share Fair Market Value exceeds
      the exercise price of the Option or SAR. “Non-409A Award” means an Award other
      than a 409A Award. Although the Committee retains authority under the Plan
      to
      grant Options, SARs and Restricted Stock on terms that will qualify those Awards
      as 409A Awards, Options, SARs, and Restricted Stock are intended to be Non-409A
      Awards unless otherwise expressly specified by the Committee. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (o)
      “Incentive Stock Option” or “ISO” means any Option designated as an incentive
      stock option within the meaning of Code Section 422 and qualifying thereunder.
      

    

    (p)
      “Option” means a right to purchase Stock granted under Section 6(b).

    

    (q)
      “Other Stock-Based Awards” means Awards granted to a Participant under Section
      6(h). 

    

    (r)
      “Participant” means a person who has been granted an Award under the Plan which
      remains outstanding, including a person who is no longer an Eligible Person.
      

    

    (s)
      “Performance Award” means an Award granted to a Participant under Sections 6(i)
      or 7. 

    

    (t)
      “Preexisting Plan” mean the Company’s 2000 Stock Option and Grant Plan, as
      amended. 

    

    (u)
      “Restricted Stock” means Stock granted under this Plan which is subject to
      certain restrictions and to a risk of forfeiture. 

    

    (v)
      “Stock” means the Company's Common Stock, par value $ 0.0001 per share and any
      other equity securities of the Company that may be substituted or re-substituted
      for Stock pursuant to Section 11(c). 

    

    (w)
      “Stock Appreciation Rights” or “SAR” means a right granted to a Participant
      under Section 6(c). 

    

    (x)
“Ten
      Percent Owner” means an employee who owns or is deemed to own (by reason of the
      attribution rules of Code Section 424(d)) more than 10 percent of the combined
      voting power of all classes of stock of the Company or any parent or subsidiary
      corporation. 

    

    3.
      Administration.
      

     

    (a)
      Authority
      of the Committee.
      The
      Plan shall be administered by the Committee, which shall have full and final
      authority, in each case subject to and consistent with the provisions of the
      Plan, to select Eligible Persons to become Participants; to grant Awards; to
      determine the type and number of Awards, the number and class of shares of
      Stock
      to which an Award may relate, the dates on which Awards may be exercised and
      on
      which the risk of forfeiture or deferral period relating to Awards shall lapse
      or terminate, the acceleration of any such dates (including in connection with
      a
      change in control of the Company), the expiration date of any Award, whether,
      to
      what extent, and under what circumstances an Award may be settled, or the
      exercise price of an Award may be paid, in cash, Stock, other Awards, or other
      property, and other terms and conditions of, and all other matters relating
      to,
      Awards; to prescribe documents evidencing or setting terms of Awards (such
      Award
      documents need not be identical for each Participant or each Award), amendments
      thereto, and rules and regulations for the administration of the Plan and
      amendments thereto; to construe and interpret the Plan and Award documents
      and
      correct defects, supply omissions or reconcile inconsistencies therein; and
      to
      make all other decisions and determinations as the Committee may deem necessary
      or advisable for the administration of the Plan. Decisions of the Committee
      with
      respect to the administration and interpretation of the Plan shall be final,
      conclusive, and binding upon all persons interested in the Plan, including
      Participants, Beneficiaries, transferees under Section 11(b) and other persons
      claiming rights from or through a Participant, and stockholders. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Manner
      of Exercise of Committee Authority.
      The
      express grant of any specific power to the Committee, and the taking of any
      action by the Committee, shall not be construed as limiting any power or
      authority of the Committee. The Committee may act through subcommittees,
      including for purposes of perfecting exemptions under Rule 16b-3 or qualifying
      Awards under Code Section 162(m) as performance-based compensation, in which
      case the subcommittee shall be subject to and have authority under the charter
      applicable to the Committee, and the acts of the subcommittee shall be deemed
      to
      be acts of the Committee hereunder. The Committee may delegate to one or more
      officers or managers of the Company or any subsidiary or affiliate, or
      committees thereof, the authority, subject to such terms as the Committee shall
      determine, to perform such functions, including administrative functions, as
      the
      Committee may determine, to the extent that such delegation (i) will not result
      in the loss of an exemption under Rule 16b-3(d) for Awards granted to
      Participants subject to Section 16 of the Exchange Act in respect of the
      Company, (ii) will not cause Awards intended to qualify as “performance-based
      compensation” under Code Section 162(m) will fail to so qualify, and (iii) will
      not result in a related-party transaction with an executive officer required
      to
      be disclosed under Item 404(a) of Regulation S-K (in accordance with Instruction
      5.a.ii thereunder) under the Exchange Act, and (iv) is permitted under Section
      157 and other applicable provisions of the Delaware General Corporation Law.
      

    

    (c)
      Limitation
      of Liability.
      The
      Committee and each member thereof, and any person acting pursuant to authority
      delegated by the Committee, shall be entitled, in good faith, to rely or act
      upon any report or other information furnished by any executive officer, other
      officer or employee of the Company or a subsidiary or affiliate, the Company's
      independent auditors, consultants or any other agents assisting in the
      administration of the Plan. Members of the Committee, any person acting pursuant
      to authority delegated by the Committee, and any officer or employee of the
      Company or a subsidiary or affiliate acting at the direction or on behalf of
      the
      Committee or a delegee shall not be personally liable for any action or
      determination taken or made in good faith with respect to the Plan, and shall,
      to the extent permitted by law, be fully indemnified and protected by the
      Company with respect to any such action or determination. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.
      Stock
      Subject To Plan.
      

     

    (a)
      Overall
      Number of Shares Available for Delivery. Subject
      to adjustment as provided in Section 11(c), the total number of shares of Stock
      reserved and available for delivery in connection with Awards under the Plan
      shall be (i) 16 million shares of Stock plus (ii) the number of shares that,
      immediately before the Effective Date, remain available for new awards under
      the
      Preexisting Plan and the number of shares that become available from the
      Preexisting Plan in accordance with Section 4(b) after the Effective Date plus
      (iii), on the first day of each calendar year during which the Plan is in
      effect, an additional 3.5% of the shares outstanding at the close of the
      preceding calendar year plus, during each year in which the Plan is in effect,
      3.5% of any issuance of shares during the year (excluding shares issued under
      a
      compensatory plan) that increases the number of outstanding shares over the
      number outstanding at the close of the preceding calendar year (or, in 2007,
      the
      number outstanding at the Effective Date), provided that shares will not be
      added under this clause (iii) if and to the extent that the aggregate number
      of
      shares previously added and to be added would exceed 20% of the shares of Stock
      then outstanding. The foregoing notwithstanding, the total number of shares
      of
      Stock with respect to which ISOs may be granted shall not exceed the number
      specified in clause (i) above, subject to adjustment as provided in Section
      11(c). Any shares of Stock delivered under the Plan shall consist of authorized
      and unissued shares or treasury shares. 

     

    (b)
      Share
      Counting Rules.
      The
      Committee may adopt reasonable counting procedures to ensure appropriate
      counting, avoid double counting (as, for example, in the case of tandem or
      substitute awards) and make adjustments in accordance with this Section 4(b).
      Shares shall be counted against those reserved to the extent such shares have
      been delivered and are no longer subject to a risk of forfeiture. Accordingly,
      (i) to the extent that an Award under the Plan or an award under the Preexisting
      Plan is canceled, expired, forfeited, settled in cash, settled by delivery
      of
      fewer shares than the number underlying the Award or award, or otherwise
      terminated without delivery of shares to the Participant, the shares retained
      by
      or returned to the Company will not be deemed to have been delivered under
      the
      Plan, and will be available for Awards under the Plan; and (ii) shares that
      are
      withheld from such an Award or award or separately surrendered by the
      Participant in payment of the exercise or purchase price or taxes relating
      to
      such an Award or award shall be deemed to constitute shares not delivered and
      will be available under the Plan. The Committee may determine that Awards may
      be
      outstanding that relate to more shares than the aggregate remaining available
      under the Plan so long as Awards will not in fact result in delivery and vesting
      of shares in excess of the number then available under the Plan. In addition,
      in
      the case of any Award granted in assumption of or in substitution for an award
      of a company or business acquired by the Company or a subsidiary or affiliate
      or
      with which the Company or a subsidiary or affiliate combines, shares delivered
      or deliverable in connection with such assumed or substitute Award shall not
      be
      counted against the number of shares reserved under the Plan. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.
      Eligibility;
      Per-Person Award Limitations.
      

    

    (a)
      Eligibility.
      Awards
      may be granted under the Plan only to Eligible Persons. For purposes of the
      Plan, an “Eligible Person” means (i) an employee of the Company or any
      subsidiary or affiliate, including any executive officer or employee director
      of
      the Company or a subsidiary or affiliate, (ii) any person who has been offered
      employment by the Company or a subsidiary or affiliate, provided that such
      prospective employee may not receive any payment or exercise any right relating
      to an Award until such person has commenced employment with the Company or
      a
      subsidiary or affiliate, (iii) any non-employee director of the Company or
      a
      subsidiary, and (iv) any person who provides substantial services to the Company
      or a subsidiary or affiliate. ISOs may only be granted to employees of the
      Company, a “parent corporation” or a “subsidiary corporation”, as those terms
      are defined in Code Section 424(e) and Section 424(f), respectively. An employee
      on leave of absence may be considered as still in the employ of the Company
      or a
      subsidiary or affiliate for purposes of eligibility for participation in the
      Plan. For purposes of the Plan, a joint venture in which the Company or a
      subsidiary has a substantial direct or indirect equity investment shall be
      deemed an affiliate, if so determined by the Committee. Holders of awards
      granted by a company or business acquired by the Company or a subsidiary or
      affiliate, or with which the Company or a subsidiary or affiliate combines,
      are
      eligible for grants of substitute awards granted in assumption of or in
      substitution for such outstanding awards previously granted under the Plan
      in
      connection with such acquisition or combination transaction. 

     

    (b)
      Per-Person
      Award Limitations.
      In each
      calendar year during any part of which the Plan is in effect, an Eligible Person
      may be granted Awards intended to qualify as “performance-based compensation”
under Code Section 162(m) under the Plan relating to up to his or her Annual
      Limit. A Participant's Annual Limit, in any year during any part of which the
      Participant is then eligible under the Plan, shall equal 7.5 million shares
      plus
      the amount of the Participant's unused Annual Limit relating to the same type
      of
      Award as of the close of the previous year up to the maximum number of shares
      reserved under Section 4(a) , subject to adjustment as provided in Section
      11(c). In the case of an Award which is not valued at grant in a way in which
      the limitation on shares set forth in the preceding sentence would operate
      as an
      effective limitation satisfying applicable law (including Treasury Regulation
§
1.162-27(e)(4)), an Eligible Person may not be granted Awards authorizing the
      earning during any calendar year of an amount that exceeds the Eligible Person's
      Annual Limit, which for this purpose shall equal $2.5 million plus the amount
      of
      the Eligible Person's unused cash Annual Limit as of the close of the previous
      year (this limitation is separate and not affected by the number of Awards
      granted during such calendar year subject to the limitation in the preceding
      sentence). For this purpose, (i) “earning” means satisfying performance
      conditions so that an amount becomes payable, without regard to whether it
      is to
      be paid currently or on a deferred basis or continues to be subject to any
      service requirement or other non-performance condition, (ii) a Participant's
      Annual Limit is used to the extent an amount or number of shares may be
      potentially earned or paid under an Award, regardless of whether such amount
      or
      shares are in fact earned or paid, and (iii) the Annual Limit applies to
      Dividend Equivalents under Section 6(g) only if such Dividend Equivalents are
      granted separately from and not as a feature of another Award. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)
      Annual
      Limit on Incentive Stock Options.
      To the
      extent required for “incentive stock option” treatment under Code Section 422,
      the aggregate Fair Market Value (determined as of the time of grant) of the
      shares of Stock with respect to which ISOs granted under this Plan and any
      other
      plan of the Company or its parent and subsidiary corporations become exercisable
      for the first time by a Participant during any calendar year shall not exceed
      $100,000. To the extent that any Option intended to be an ISO exceeds this
      limit, it shall constitute a non-qualified Option. 

    

    6.
      Specific
      Terms of Awards. 

    

    (a)
      General.
      Awards
      may be granted on the terms and conditions set forth in this Section 6. In
      addition, the Committee may impose on any Award or the exercise thereof, at
      the
      date of grant or thereafter (subject to Sections 11(e) and 11(k)), such
      additional terms and conditions, not inconsistent with the provisions of the
      Plan, as the Committee shall determine, including terms requiring forfeiture
      of
      Awards in the event of termination of employment or service by the Participant
      and terms permitting a Participant to make elections relating to his or her
      Award. The Committee shall retain full power and discretion with respect to
      any
      term or condition of an Award that is not mandatory under the Plan, subject
      to
      Section 11(k) and the terms of the Award agreement. The Committee shall require
      the payment of lawful consideration for an Award to the extent necessary to
      satisfy the requirements of the Delaware General Corporation Law, and may
      otherwise require payment of consideration for an Award except as limited by
      the
      Plan. 

    

    (b)
      Options.
      The
      Committee is authorized to grant Options to Participants on the following terms
      and conditions: 

    

    (i)
      Exercise Price. The exercise price per share of Stock purchasable under an
      Option (including both ISOs and non-qualified Options) shall be determined
      by
      the Committee, provided that such exercise price shall be not less than the
      Fair
      Market Value of a share of Stock on the date of grant of such Option, subject
      to
      Section 8(a). In the case of an ISO that is granted to a Ten Percent Owner,
      the
      option price of such ISO shall be not less than 110% of the Fair Market Value
      on
      the grant date. Notwithstanding the foregoing, any substitute award granted
      in
      assumption of or in substitution for an outstanding award granted by a company
      or business acquired by the Company or a subsidiary or affiliate, or with which
      the Company or a subsidiary or affiliate combines may be granted with an
      exercise price per share of Stock other than as required above. No adjustment
      will be made for a dividend or other right for which the record date is prior
      to
      the date on which the stock is issued, except as provided in Section 11(c)
      of
      the Plan. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)
      Option Term; Time and Method of Exercise. The Committee shall determine the
      term
      of each Option, provided that in no event shall the term of any Option exceed
      a
      period of ten years from the date of grant. In the case of an ISO that is
      granted to a Ten Percent Owner, the term of such ISO shall be no more than
      five
      years from the date of grant. The Committee shall determine the time or times
      at
      which or the circumstances under which an Option may be exercised in whole
      or in
      part (including based on achievement of performance goals and/or future service
      requirements), the methods by which such exercise price may be paid or deemed
      to
      be paid and the form of such payment (subject to Sections 11(j) and 11(k)),
      including, without limitation, cash, Stock (including by withholding Stock
      deliverable upon exercise), other Awards or awards granted under other plans
      of
      the Company or any subsidiary or affiliate, or other property (including through
      broker-assisted “cashless exercise” arrangements, to the extent permitted by
      applicable law), and the methods by or forms in which Stock will be delivered
      or
      deemed to be delivered in satisfaction of Options to Participants (including,
      in
      the case of 409A Awards, deferred delivery of shares subject to the Option,
      as
      mandated by the Committee, with such deferred shares subject to any vesting,
      forfeiture or other terms as the Committee may specify). 

    (iii)
      ISOs. The terms of any ISO granted under the Plan shall comply in all respects
      with the provisions of Code Section 422. To the extent that any Option intended
      to be an ISO does not qualify as an ISO, it shall be deemed a non-qualified
      Option. 

    

    (c)
      Stock
      Appreciation Rights.
      The
      Committee is authorized to grant SARs to Participants on the following terms
      and
      conditions: 

    

    (i)
      Right
      to Payment. An SAR shall confer on the Participant to whom it is granted a
      right
      to receive, upon exercise thereof, the excess of (A) the Fair Market Value
      of
      one share of Stock on the date of exercise over (B) the grant price of the
      SAR
      as determined by the Committee. The grant price of each SAR shall be not less
      than the Fair Market Value of a share of Stock on the date of grant of such
      SAR.

    (ii)
      Other Terms. The Committee shall determine the term of each SAR, provided that
      in no event shall the term of an SAR exceed a period of ten years from the
      date
      of grant. The Committee shall determine at the date of grant or thereafter,
      the
      time or times at which and the circumstances under which a SAR may be exercised
      in whole or in part (including based on achievement of performance goals and/or
      future service requirements), the method of exercise, method of settlement,
      form
      of consideration payable in settlement, method by or forms in which Stock will
      be delivered or deemed to be delivered to Participants, whether or not a SAR
      shall be free-standing or in tandem or combination with any other Award, and
      whether or not the SAR will be a 409A Award or Non-409A Award. The Committee
      may
      require that an outstanding Option be exchanged for an SAR exercisable for
      Stock
      having vesting, expiration, and other terms substantially the same as the
      Option, so long as such exchange will not result in additional accounting
      expense to the Company. 

    

    (d)
      Restricted
      Stock.
      The
      Committee is authorized to grant Restricted Stock to Participants on the
      following terms and conditions: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (i)
      Grant
      and Restrictions. Restricted Stock shall be subject to such restrictions on
      transferability, risk of forfeiture and other restrictions, if any, as the
      Committee may impose, which restrictions may lapse separately or in combination
      at such times, under such circumstances (including based on achievement of
      performance goals and/or future service requirements), in such installments
      or
      otherwise and under such other circumstances as the Committee may determine
      at
      the date of grant or thereafter. Except to the extent restricted under the
      terms
      of the Plan and any Award document relating to the Restricted Stock, a
      Participant granted Restricted Stock shall have all of the rights of a
      stockholder, including the right to vote the Restricted Stock and the right
      to
      receive dividends thereon (subject to any mandatory reinvestment or other
      requirement imposed by the Committee). 

    (ii)
      Forfeiture. Except as otherwise determined by the Committee, upon termination
      of
      employment or service during the applicable restriction period, Restricted
      Stock
      that is at that time subject to restrictions shall be forfeited and reacquired
      by the Company; provided that the Committee may provide, by rule or regulation
      or in any Award document, or may determine in any individual case, that
      restrictions or forfeiture conditions relating to Restricted Stock will lapse
      in
      whole or in part, including in the event of terminations resulting from
      specified causes. 

    (iii)
      Certificates for Stock. Restricted Stock granted under the Plan may be evidenced
      in such manner as the Committee shall determine. If certificates representing
      Restricted Stock are registered in the name of the Participant, the Committee
      may require that such certificates bear an appropriate legend referring to
      the
      terms, conditions and restrictions applicable to such Restricted Stock, that
      the
      Company retain physical possession of the certificates, and that the Participant
      deliver a stock power to the Company, endorsed in blank, relating to the
      Restricted Stock. 

    (iv)
      Dividends and Splits. As a condition to the grant of an Award of Restricted
      Stock, the Committee may require that any dividends paid on a share of
      Restricted Stock shall be either (A) paid with respect to such Restricted Stock
      at the dividend payment date in cash, in kind, or in a number of shares of
      unrestricted Stock having a Fair Market Value equal to the amount of such
      dividends, or (B) automatically reinvested in additional Restricted Stock or
      held in kind, which shall be subject to the same terms as applied to the
      original Restricted Stock to which it relates, or (C) deferred as to payment,
      either as a cash deferral or with the amount or value thereof automatically
      deemed reinvested in shares of Deferred Stock, other Awards or other investment
      vehicles, subject to such terms as the Committee shall determine or permit
      a
      Participant to elect or (D) not paid in respect of the Restricted Stock for
      any
      record date prior to vesting of the Restricted Stock. Unless otherwise
      determined by the Committee, Stock distributed in connection with a Stock split
      or Stock dividend, and other property distributed as a dividend, shall be
      subject to restrictions and a risk of forfeiture to the same extent as the
      Restricted Stock with respect to which such Stock or other property has been
      distributed. 

    

    (e)
      Deferred
      Stock.
      The
      Committee is authorized to grant Deferred Stock to Participants, subject to
      the
      following terms and conditions: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)
      Award
      and Restrictions. Issuance of Stock will occur upon expiration of the deferral
      period specified for an Award of Deferred Stock by the Committee (or, if
      permitted by the Committee, as elected by the Participant). In addition,
      Deferred Stock shall be subject to such restrictions on transferability, risk
      of
      forfeiture and other restrictions, if any, as the Committee may impose, which
      restrictions may lapse at the expiration of the deferral period or at earlier
      specified times (including based on achievement of performance goals and/or
      future service requirements), separately or in combination, in installments
      or
      otherwise, and under such other circumstances as the Committee may determine
      at
      the date of grant or thereafter. Deferred Stock may be satisfied by delivery
      of
      Stock, other Awards, or a combination thereof (subject to Section 11(k)), as
      determined by the Committee at the date of grant or thereafter. 

    (ii)
      Forfeiture. Except as otherwise determined by the Committee, upon termination
      of
      employment or service during the applicable deferral period or portion thereof
      to which forfeiture conditions apply (as provided in the Award document
      evidencing the Deferred Stock), all Deferred Stock that is at that time subject
      to such forfeiture conditions shall be forfeited; provided that the Committee
      may provide, by rule or regulation or in any Award document, or may determine
      in
      any individual case, that restrictions or forfeiture conditions relating to
      Deferred Stock will lapse in whole or in part, including in the event of
      terminations resulting from specified causes. Deferred Stock subject to a risk
      of forfeiture may be called “restricted stock units” or otherwise designated by
      the Committee. 

    (iii)
      Dividend Equivalents. Unless otherwise determined by the Committee, Dividend
      Equivalents on the specified number of shares of Stock covered by an Award
      of
      Deferred Stock shall be either (A) paid with respect to such Deferred Stock
      at
      the dividend payment date in cash or in shares of unrestricted Stock having
      a
      Fair Market Value equal to the amount of such dividends, or (B) deferred with
      respect to such Deferred Stock, either as a cash deferral or with the amount
      or
      value thereof automatically deemed reinvested in additional Deferred Stock,
      other Awards or other investment vehicles having a Fair Market Value equal
      to
      the amount of such dividends, as the Committee shall determine or permit a
      Participant to elect. 

    

    (f)
      Bonus
      Stock and Awards in Lieu of Obligations.
      The
      Committee is authorized to grant to Participants Stock as a bonus, or to grant
      Stock or other Awards in lieu of obligations of the Company or a subsidiary
      or
      affiliate to pay cash or deliver other property under the Plan or under other
      plans or compensatory arrangements, subject to such terms as shall be determined
      by the Committee. 

    

    (g)
      Dividend
      Equivalents.
      The
      Committee is authorized to grant Dividend Equivalents to a Participant, which
      may be awarded on a free-standing basis or in connection with another Award.
      The
      Committee may provide that Dividend Equivalents shall be paid or distributed
      when accrued or shall be deemed to have been reinvested in additional Stock,
      Awards, or other investment vehicles, and subject to restrictions on
      transferability, risks of forfeiture and such other terms as the Committee
      may
      specify. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (h)
      Other
      Stock-Based Awards.
      The
      Committee is authorized, subject to limitations under applicable law, to grant
      to Participants such other Awards that may be denominated or payable in, valued
      in whole or in part by reference to, or otherwise based on, or related to,
      Stock
      or factors that may influence the value of Stock, including, without limitation,
      convertible or exchangeable debt securities, other rights convertible or
      exchangeable into Stock, purchase rights for Stock, Awards with value and
      payment contingent upon performance of the Company or business units thereof
      or
      any other factors designated by the Committee, and Awards valued by reference
      to
      the book value of Stock or the value of securities of or the performance of
      specified subsidiaries or affiliates or other business units. The Committee
      shall determine the terms and conditions of such Awards. Stock delivered
      pursuant to an Award in the nature of a purchase right granted under this
      Section 6(h) shall be purchased for such consideration, paid for at such times,
      by such methods, and in such forms, including, without limitation, cash, Stock,
      other Awards, notes, or other property, as the Committee shall determine. Cash
      awards, as an element of or supplement to any other Award under the Plan, may
      also be granted pursuant to this Section 6(h). 

    

    (i)
      Performance
      Awards.
      Performance Awards, denominated in cash or in Stock or other Awards, may be
      granted by the Committee in accordance with Section 7. 

    

    7.
      Performance
      Awards.
      

    

    (a)
      Performance
      Awards Generally.
      Performance Awards may be denominated as a cash amount, number of shares of
      Stock, or specified number of other Awards (or a combination) which may be
      earned upon achievement or satisfaction of performance conditions specified
      by
      the Committee. In addition, the Committee may specify that any other Award
      shall
      constitute a Performance Award by conditioning the right of a Participant to
      exercise the Award or have it settled, and the timing thereof, upon achievement
      or satisfaction of such performance conditions as may be specified by the
      Committee. The Committee may use such business criteria and other measures
      of
      performance as it may deem appropriate in establishing any performance
      conditions, and may exercise its discretion to reduce or increase the amounts
      payable under any Award subject to performance conditions, except as limited
      under Sections 7(b) and 7(c) in the case of a Performance Award intended to
      qualify as “performance-based compensation” under Code Section 162(m).

    

    (b)
      Performance
      Awards Intended To Qualify Under Code Section 162(m).
      If the
      Committee determines that a Performance Award to be granted to an Eligible
      Person should qualify as “performance-based compensation” for purposes of Code
      Section 162(m) in order to preserve the ability of the Company to claim income
      tax deductions for compensation resulting from such Award, the grant, exercise
      and/or settlement of such Performance Award shall be contingent upon achievement
      of a preestablished performance goal and other terms set forth in this Section
      7(b). 

    

    (i)
      Performance Goal Generally. The performance goal for such Performance Awards
      shall consist of one or more business criteria and a targeted level or levels
      of
      performance with respect to each of such criteria, as specified by the Committee
      consistent with this Section 7(b). The performance goal shall be objective
      and
      shall otherwise meet the requirements of Code Section 162(m) and regulations
      thereunder, including the requirement that the level or levels of performance
      targeted by the Committee result in the achievement of performance goals being
      “substantially uncertain.” The Committee may determine that such Performance
      Awards shall be granted, exercised and/or settled upon achievement of any one
      performance goal or that two or more of the performance goals must be achieved
      as a condition to grant, exercise and/or settlement of such Performance Awards.
      Performance goals may differ for Performance Awards granted to any one
      Participant or to different Participants. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (ii)
      Business Criteria. One or more of the following business criteria for the
      Company, on a consolidated basis, and/or for specified subsidiaries or
      affiliates or other business units of the Company shall be used by the Committee
      in establishing performance goals for such Performance Awards: (1) gross revenue
      or sales measures; (2) operating income, earnings from operations, earnings
      before or after taxes, earnings before or after interest, depreciation,
      amortization, or extraordinary or special items, (3) net income or net income
      per common share (basic or diluted); (4) return on assets, return on investment,
      return on capital, or return on equity; (5) cash flow, free cash
      flow, cash flow return on investment, or net cash provided by operations; (6)
      interest expense after taxes; (7) economic profit or value created; (8)
      operating margin; (9) stock price or total stockholder return; (10) capital
      raising; and (11) implementation, completion or attainment of measurable
      objectives with respect to research, development, products or projects,
      production volume levels, acquisitions and divestitures of subsidiaries,
      affiliates, joint ventures or other assets, market penetration, total market
      capitalization and enterprise value, business retention, new product generation,
      cost controls and targets (including cost of capital), customer satisfaction,
      employee satisfaction, agency ratings, management of employment practices and
      employee benefits, supervision of litigation and information technology,
      implementation of business process controls, and recruiting and retaining
      personnel. The targeted level or levels of performance with respect to such
      business criteria may be established at such levels and in such terms as the
      Committee may determine, in its discretion, including in absolute terms, as
      a
      goal relative to performance in prior periods, or as a goal compared to the
      performance of one or more comparable companies or entities or an index covering
      multiple companies. 

    (iii)
      Performance Period; Timing for Establishing Performance Goals. Achievement
      of
      performance goals in respect of such Performance Awards shall be measured over
      a
      performance period of up to one year or more than one year, as specified by
      the
      Committee. A performance goal shall be established not later than the earlier
      of
      (A) 90 days after the beginning of any performance period applicable to such
      Performance Award or (B) the time 25% of such performance period has elapsed.
      

    (iv)
      Performance Award Pool. The Committee may establish a Performance Award pool,
      which shall be an unfunded pool, for purposes of measuring performance of the
      Company in connection with Performance Awards. The amount of such Performance
      Award pool shall be based upon the achievement of a performance goal or goals
      based on one or more of the business criteria set forth in Section 7(b)(ii)
      during the given performance period, as specified by the Committee in accordance
      with Section 7(b)(iv). The Committee may specify the amount of the Performance
      Award pool as a percentage of any of such business criteria, a percentage
      thereof in excess of a threshold amount, or as another amount which need not
      bear a strictly mathematical relationship to such business criteria.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (iv)
      Settlement of Performance Awards; Other Terms. Settlement of Performance Awards
      shall be in cash, Stock, other Awards or other property, in the discretion
      of
      the Committee. The Committee may, in its discretion, increase or reduce the
      amount of a settlement otherwise to be made in connection with such Performance
      Awards, but may not exercise discretion to increase any such amount payable
      to a
      Covered Employee in respect of a Performance Award subject to this Section
      7(b)
      beyond the level of payment authorized for achievement of the performance goal
      specified under this Section 7(b) based on the actual level of achievement
      of
      such goal. Any settlement which changes the form of payment from that originally
      specified shall be implemented in a manner such that the Performance Award
      and
      other related Awards do not, solely for that reason, fail to qualify as
“performance-based compensation” for purposes of Code Section 162(m). The
      Committee shall specify the circumstances in which such Performance Awards
      shall
      be paid or forfeited in the event of termination of employment by the
      Participant or other event (including a change in control) prior to the end
      of a
      performance period or settlement of such Performance Awards. 

    

    (c)
      Written
      Determinations.
      Determinations by the Committee relating to Awards granted under Section 7(b)
      (i.e., intended to qualify under Section 162(m)), including as to the
      establishment of performance goals, the amount potentially payable in respect
      of
      Performance Awards, the level of actual achievement of the specified performance
      goals relating to Performance Awards, and the amount of any final Performance
      Award shall be recorded in writing. Specifically, the Committee shall certify
      in
      writing, in a manner conforming to applicable regulations under Code Section
      162(m), prior to settlement of each such Award granted under Section 7(b),
      that
      the performance objective relating to the Performance Award and other material
      terms of the Award upon which settlement of the Award was conditioned have
      been
      satisfied. 

    

    8.
      Certain
      Provisions Applicable To Awards.
      

    

    (a)
      Stand-Alone,
      Additional, Tandem, and Substitute Awards.
      Awards
      granted under the Plan may, in the discretion of the Committee, be granted
      either alone or in addition to, in tandem with, or in substitution or exchange
      for, any other Award or any award granted under another plan of the Company,
      any
      subsidiary or affiliate, or any business entity to be acquired by the Company
      or
      a subsidiary or affiliate, or any other right of a Participant to receive
      payment from the Company or any subsidiary or affiliate; provided, however,
      that
      a 409A Award may not be granted in tandem with a Non-409A Award. Awards granted
      in addition to or in tandem with other Awards or awards may be granted either
      as
      of the same time as or a different time from the grant of such other Awards
      or
      awards. Subject to Sections 11(j) and (k), the Committee may determine that,
      in
      granting a new Award, the in-the-money value or fair value of any surrendered
      Award or award or the fair value of any other right to payment surrendered
      by
      the Participant may be applied to the purchase of any other Award. This
      provision expressly authorizes transactions that would be considered to be
      a
“repricing” of outstanding Options or SARs or options and stock appreciation
      rights granted under any other Company equity compensation plan.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)
      Term
      of Awards.
      The
      term of each Award shall be for such period as may be determined by the
      Committee, subject to the express limitations set forth in Sections 6(b)(ii),
      6(c)(ii) and 8 or elsewhere in the Plan. 

    

    (c)
      Form
      and Timing of Payment under Awards; Deferrals.
      Subject
      to the terms of the Plan (including Section 11(k)) and any applicable Award
      document, payments to be made by the Company or a subsidiary or affiliate upon
      the exercise or settlement of an Award may be made in such forms as the
      Committee shall determine, including, without limitation, cash, Stock, other
      Awards or other property, and may be made in a single payment or transfer,
      in
      installments, or on a deferred basis. The settlement of any Award may be
      accelerated, and cash paid in lieu of Stock in connection with such settlement,
      in the discretion of the Committee or upon occurrence of one or more specified
      events, subject to Sections 11(j) and (k). Subject to Section 11(k), installment
      or deferred payments may be required by the Committee (subject to Section 11(e))
      or permitted at the election of the Participant on terms and conditions
      established by the Committee. Payments may include, without limitation,
      provisions for the payment or crediting of reasonable interest on installment
      or
      deferred payments or the grant or crediting of Dividend Equivalents or other
      amounts in respect of installment or deferred payments denominated in Stock.
      In
      the case of any 409A Award that is vested and no longer subject to a risk of
      forfeiture (within the meaning of Code Section 83), such Award will be
      distributed to the Participant, upon application of the Participant, if the
      Participant has had an unforeseeable emergency within the meaning of Code
      Sections 409A(a)(2)(A)(vi) and 409A(a)(2)(B)(ii), in accordance with Section
      409A(a)(2)(B)(ii). 

    

    9.
      Change
      in Control. 

    

    (a)
      Effect
      of “Change in Control” on Non-Performance Based Awards.
      In the
      event of a “Change in Control,” the following provisions shall apply to
      non-performance based Awards, including Awards as to which performance
      conditions previously have been satisfied or are deemed satisfied under Section
      9(b), unless otherwise provided by the Committee in the Award document (subject
      to Section 11(e)): 

    

    (i)
      All
      forfeiture conditions and other vesting restrictions applicable to outstanding
      Awards shall lapse and such Awards shall be fully vested and payable and
      settleable as of the time of the Change in Control without regard to such
      vesting conditions, except to the extent of any waiver by the Participant or
      other valid express election to defer beyond the Change in Control and subject
      to applicable restrictions set forth in Sections 11(a) and 11(k);

    (ii)
      Any
      Award carrying a right to exercise that was not previously exercisable and
      vested shall become fully exercisable and vested as of the time of the Change
      in
      Control and shall remain exercisable and vested for the balance of the stated
      term of such Award without regard to any termination of employment or service
      by
      the Participant other than a termination for “cause” (as defined in any
      employment or severance agreement between the Company or a subsidiary or
      affiliate and the Participant then in effect or, if none, as defined by the
      Committee and in effect at the time of the Change in Control), subject only
      to
      applicable restrictions set forth in Sections 11(a) and 11(k); and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (iii)
      All
      deferral of settlement and similar restrictions applicable to an outstanding
      Award shall lapse and such Award shall be fully payable and settleable as of
      the
      time of the Change in Control without regard to deferral and similar
      restrictions, except to the extent of any valid express election to defer beyond
      the Change in Control and subject to applicable restrictions set forth in
      Sections 11(a) and 11(k).

    

    (b)
      Effect
      of “Change in Control” on Performance-Based Awards.
      In the
      event of a “Change in Control,” with respect to an outstanding Award subject to
      achievement of performance goals and conditions, such performance goals and
      conditions shall be deemed to be met or exceeded if and to the extent so
      provided by the Committee in the Award document governing such Award or other
      agreement with the Participant. Unless otherwise specified in such Award
      agreement, vesting and exercisability or settlement of such Award with regard
      to
      non-performance based terms will be as provided in Section 9(a). 

    

    (c)
      Cancellation
      of Awards.
      Upon
      the satisfaction of one or more of the conditions set forth in Section 9(a)(i),
      9(a)(ii), or 9(b), the Award may be canceled. 

    

    (d)
      Cancellation
      without Payment. An
      Option
      or SAR shall be canceled without payment under Section 9(a) or Section 9(b)
      if
      the exercise price of such Option or SAR is equal to or greater than the Fair
      Market Value of a share on the date of cancellation. 

    

    (e)
      Definition
      of “Change in Control.”
      A
“Change in Control” shall be deemed to have occurred if, after the Effective
      Date, there shall have occurred any of the following: 

    

    (i)
      Any
“person,” as such term is used in Section 13(d) and 14(d) of the Exchange Act
      (other than the Company, any trustee or other fiduciary holding securities
      under
      an employee benefit plan of the Company, or any company owned, directly or
      indirectly, by the stockholders of the Company in substantially the same
      proportions as their ownership of stock of the Company), acquires voting
      securities of the Company and immediately thereafter is a “50% Beneficial
      Owner.” For purposes of this provision, a “50% Beneficial Owner” shall mean a
      person who is the “beneficial owner” (as defined in Rule 13d-3 under the
      Exchange Act), directly or indirectly, of securities of the Company representing
      50% or more of the combined voting power of the Company's then-outstanding
      voting securities; provided, however, that the term “50% Beneficial Owner” shall
      not include any person who shall become the beneficial owner of 50% or more
      of
      the combined voting power of the Company's then-outstanding voting securities
      solely as a result of an acquisition by the Company of its voting securities,
      until such time thereafter as such person shall become the beneficial owner
      (other than by means of a stock dividend or stock split) of any additional
      voting securities and at that time is a 50% Beneficial Owner in accordance
      with
      this Section 9(c)(i);

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (ii)
      During any period of two consecutive years commencing on or after the Effective
      Date, individuals who at the beginning of such period constitute the Board,
      and
      any new director (other than a director designated by a person (as defined
      above) who has entered into an agreement with the Company to effect a
      transaction described in subsections (i), (iii) or (iv) of this definition)
      whose election by the Board or nomination for election by the Company's
      stockholders was approved by a vote of at least two-thirds (2/3) of the
      directors then still in office who either were directors at the beginning of
      the
      period or whose election or nomination for election was previously so approved
      (the “Continuing Directors”) cease for any reason to constitute at least a
      majority thereof;

    (iii)
      There is consummated a merger, consolidation, recapitalization, or
      reorganization of the Company, or a reverse stock split of any class of voting
      securities of the Company, other than any such transaction which would result
      in
      at least 50% of the combined voting power of the voting securities of the
      Company or the surviving entity outstanding immediately after such transaction
      being beneficially owned by persons who together beneficially owned at least
      80%
      of the combined voting power of the voting securities of the Company outstanding
      immediately prior to such transaction, with the relative voting power of each
      such continuing holder compared to the voting power of each other continuing
      holder not substantially altered as a result of the transaction; provided that,
      for purposes of this paragraph (iii), such continuity of ownership (and
      preservation of relative voting power) shall be deemed to be satisfied if the
      failure to meet such 50% threshold (or to substantially preserve such relative
      voting power) is due solely to the acquisition of voting securities by an
      employee benefit plan of the Company or of such surviving entity or a subsidiary
      thereof; and

    (iv)
      The
      stockholders of the Company have approved a plan of complete liquidation of
      the
      Company or an agreement for the sale or disposition by the Company of all or
      substantially all of the Company's assets (or any transaction having a similar
      effect); provided that, if consummation of the transaction referred to in this
      Section 10(c)(iv) is subject, at the time of such approval by stockholders,
      to
      the consent of any government or governmental agency or approval of the
      stockholders of another entity or other material contingency, no Change in
      Control shall occur until such time as such consent and approval has been
      obtained and any other material contingency has been satisfied.

    

    10.
      Additional
      Award Forfeiture Provisions.
      

    

    (a)
      Forfeiture
      of Options and Other Awards and Gains Realized Upon Prior Option Exercises
      or
      Award Settlements.
      Unless
      otherwise determined by the Committee, each Award granted hereunder shall be
      subject to the following additional forfeiture conditions, to which the
      Participant, by accepting an Award hereunder, agrees. If any of the events
      specified in Section 10(b)(i), (ii), or (iii) occurs (a “Forfeiture Event”), all
      of the following forfeitures will result: 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i)
      The
      unexercised portion of the Option, whether or not vested, and any other Award
      not then settled (except for an Award that has not been settled solely due
      to an
      elective deferral by the Participant and otherwise is not forfeitable in the
      event of any termination of service of the Participant) will be immediately
      forfeited and canceled upon the occurrence of the Forfeiture Event;
      and

    (ii)
      The
      Participant will be obligated to repay to the Company, in cash, within five
      business days after demand is made therefor by the Company, the total amount
      of
      Award Gain (as defined herein) realized by the Participant upon each exercise
      of
      an Option or SAR or settlement of an Award (treating the date an Award would
      be
      settled but for a Participant’s election to defer as a deemed settlement) that
      occurred on or after (A) the date that is six months prior to the occurrence
      of
      the Forfeiture Event, if the Forfeiture Event occurred while the Participant
      was
      employed by the Company or a subsidiary or affiliate, or (B) the date that
      is
      six months prior to the date the Participant's employment by the Company or
      a
      subsidiary or affiliate terminated, if the Forfeiture Event occurred after
      the
      Participant ceased to be so employed. For purposes of this Section, the term
      “Award Gain” shall mean (i), in respect of a given Option exercise, the product
      of (X) the Fair Market Value per share of Stock at the date of such exercise
      (without regard to any subsequent change in the market price of shares) minus
      the exercise price times (Y) the number of shares as to which the Option was
      exercised at that date, and (ii), in respect of any other settlement (or deemed
      settlement) of an Award granted to the Participant, the Fair Market Value of
      the
      cash or Stock paid or payable to Participant (i.e., disregarding any election
      to
      defer by the Participant) less any cash or the Fair Market Value of any Stock
      or
      property (other than an Award or award which would have itself then been
      forfeitable hereunder and excluding any payment of tax withholding) paid by
      the
      Participant to the Company as a condition of or in connection such
      settlement.

    

    (b)
      Events
      Triggering Forfeiture.
      The
      forfeitures specified in Section 10(a) will be triggered upon the occurrence
      of
      any one of the following Forfeiture Events at any time during the Participant's
      employment by the Company or a subsidiary or affiliate or during the one-year
      period following termination of such employment: 

    

    (i)
      The
      Participant, acting alone or with others, directly or indirectly, (A) prior
      to a
      Change in Control engages, either as employee, employer, consultant, advisor,
      or
      director, or as an owner, investor, partner, or shareholder unless the
      Participant's interest is insubstantial, in any business in an area or region
      in
      which the Company conducts business at the date the event occurs, which is
      directly in competition with a business then conducted by the Company or a
      subsidiary or affiliate; (B) induces any customer or supplier of the Company
      or
      a subsidiary or affiliate, or other company with
      which the Company or a subsidiary or affiliate has a business relationship,
      to
      curtail, cancel, not renew, or not continue his or her or its business with
      the
      Company or any subsidiary or affiliate; or (C) induces, or attempts to
      influence, any employee of or service provider to the Company or a subsidiary
      or
      affiliate to terminate such employment or service. The Committee shall, in
      its
      discretion, determine which lines of business the Company conducts on any
      particular date and which third parties may reasonably be deemed to be in
      competition with the Company. For purposes of this Section 10(b)(i), a
      Participant's interest as a shareholder is insubstantial if it represents
      beneficial ownership of less than three percent of the outstanding class of
      stock, and a Participant's interest as an owner, investor, or partner is
      insubstantial if it represents ownership, as determined by the Committee in
      its
      discretion, of less than three percent of the outstanding equity of the
      entity;

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (ii)
      The
      Participant discloses, uses, sells, or otherwise transfers, except in the course
      of employment with or other service to the Company or any subsidiary or
      affiliate, any confidential or proprietary information of the Company or any
      subsidiary or affiliate, including but not limited to information regarding
      the
      Company's current and potential clients or customers, organization, employees,
      finances, and methods of operations and investments, so long as such information
      has not otherwise been disclosed to the public or is not otherwise in the public
      domain, except as required by law or pursuant to legal process, or the
      Participant makes statements or representations, or otherwise communicates,
      directly or indirectly, in writing, orally, or otherwise, or takes any other
      action which may, directly or indirectly, disparage or be damaging to the
      Company or any of its subsidiaries or affiliates or their respective officers,
      directors, employees, advisors, businesses or reputations, except as required
      by
      law or pursuant to legal process; or

    (iii)
      The
      Participant fails to cooperate with the Company or any subsidiary or affiliate
      by making himself or herself available to testify on behalf of the Company
      or
      such subsidiary or affiliate in any action, suit, or proceeding, whether civil,
      criminal, administrative, or investigative, or otherwise fails to assist the
      Company or any subsidiary or affiliate in any such action, suit, or proceeding
      by providing information and meeting and consulting with members of management
      of, other representatives of, or counsel to, the Company or such subsidiary
      or
      affiliate, as reasonably requested.

    

    (c)
      Forfeitures
      Resulting from Financial Reporting Misconduct. If
      the
      Company is required to prepare an accounting restatement due to the material
      noncompliance by the Company, as a result of misconduct, with any financial
      reporting requirement under the securities laws, and if a Participant, knowingly
      or through gross negligence, caused or failed to prevent such misconduct, the
      Participant (i) shall forfeit any Performance Award (including any Annual
      Incentive Award) that was or would be deemed to be earned in whole or in part
      based on performance during the period covered by the noncompliant financial
      report or during the 12-month period following the first public issuance or
      filing with the Securities and Exchange Commission (whichever first occurs)
      of
      the non-compliant financial report; and (ii) shall forfeit any other Award
      that
      was granted hereunder during the 12-month period following such first public
      issuance or filing of the non-compliant financial report and thereafter until
      the accounting restatement correcting such non-compliant financial report has
      been filed, and (iii) shall forfeit any profits realized from the sale of shares
      during the 12-month period following such first public issuance or filing if
      such shares were acquired upon exercise or settlement of Awards. For purposes
      of
      this Section 10(c), (A) if an Award subject to forfeiture has become vested
      or
      settled, the Participant will be liable to repay the Award Gain (as defined
      above) to the Company, (B) “profit” shall be calculated based on the excess of
      any selling price of shares over the average market price of shares in the
      20
      trading days ending the day before the first public issuance or filing of the
      non-compliant report, and (C) the term “misconduct” and other terms shall have
      meanings and be interpreted in a manner consistent with the meanings and
      interpretation of such terms under Section 304 of the Sarbanes-Oxley Act of
      2002. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)
      Agreement
      Does Not Prohibit Competition or Other Participant
      Activities.
      Although the conditions set forth in this Section 10 shall be deemed to be
      incorporated into an Award, a Participant is not thereby prohibited from
      engaging in any activity specified in Section 10(b), including but not limited
      to competition with the Company and its subsidiaries and affiliates. Rather,
      the
      non-occurrence of the Forfeiture Events set forth in Section 10(b) is a
      condition to the Participant's right to realize and retain value from his or
      her
      compensatory Awards, and the consequence under the Plan if the Participant
      engages in an activity giving rise to any such Forfeiture Event are the
      forfeitures specified herein. The Company and the Participant shall not be
      precluded by this provision or otherwise from entering into other agreements
      concerning the subject matter of Section 10(a) and 10(b). 

    

    (e)
      Committee
      Discretion.
      The
      Committee may, in its discretion, waive in whole or in part the Company's right
      to forfeiture under this Section, but no such waiver shall be effective unless
      evidenced by a writing signed by a duly authorized officer of the Company.
      In
      addition, the Committee may impose additional conditions on Awards, by inclusion
      of appropriate provisions in the document evidencing or governing any such
      Award. 

    

    11.
      General
      Provisions.
      

    

    (a)
      Compliance
      with Legal and Other Requirements.
      The
      Company may, to the extent deemed necessary or advisable by the Committee and
      subject to Section 11(k), postpone the issuance or delivery of Stock or payment
      of other benefits under any Award until completion of such registration or
      qualification of such Stock or other required action under any federal or state
      law, rule or regulation, listing or other required action with respect to any
      stock exchange or automated quotation system upon which the Stock or other
      securities of the Company are listed or quoted, or compliance with any other
      obligation of the Company, as the Committee may consider appropriate, and may
      require any Participant to make such representations, furnish such information
      and comply with or be subject to such other conditions as it may consider
      appropriate in connection with the issuance or delivery of Stock or payment
      of
      other benefits in compliance with applicable laws, rules, and regulations,
      listing requirements, or other obligations. 

    

    (b)
      Limits
      on Transferability; Beneficiaries.
      No
      Award or other right or interest of a Participant under the Plan shall be
      pledged, hypothecated or otherwise encumbered or subject to any lien, obligation
      or liability of such Participant to any party (other than the Company or a
      subsidiary or affiliate thereof), or assigned or transferred by such Participant
      otherwise than by will or the laws of descent and distribution or to a
      Beneficiary upon the death of a Participant, and such Awards or rights that
      may
      be exercisable shall be exercised during the lifetime of the Participant only
      by
      the Participant or his or her guardian or legal representative, except that
      Awards and other rights (other than ISOs and SARs in tandem therewith) may
      be
      transferred to one or more transferees during the lifetime of the Participant
      for purposes of estate-planning, and may be exercised by such transferees in
      accordance with the terms of such Award, but only if and to the extent such
      transfers are permitted by the Committee and the Committee has determined that
      there will be no transfer of the Award to a third party for value, and subject
      to any terms and conditions which the Committee may impose thereon (which may
      include limitations the Committee may deem appropriate in order that offers
      and
      sales under the Plan will meet applicable requirements of registration forms
      under the Securities Act of 1933 specified by the Securities and Exchange
      Commission). A Beneficiary, transferee, or other person claiming any rights
      under the Plan from or through any Participant shall be subject to all terms
      and
      conditions of the Plan and any Award document applicable to such Participant,
      except as otherwise determined by the Committee, and to any additional terms
      and
      conditions deemed necessary or appropriate by the Committee. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)
      Adjustments.
      In the
      event that any large and non-recurring dividend or other distribution (whether
      in the form of cash or property other than Stock), recapitalization, forward
      or
      reverse split, Stock dividend, reorganization, merger, consolidation, spin-off,
      combination, repurchase, share exchange, liquidation, dissolution or other
      similar corporate transaction or event affects the Stock such that an adjustment
      is determined by the Committee to be appropriate or, in the case of any
      outstanding Award, which is necessary in order to prevent dilution or
      enlargement of the rights of the Participant, then the Committee shall, in
      an
      equitable manner as determined by the Committee, adjust any or all of (i) the
      number and kind of shares of Stock which may be delivered in connection with
      Awards granted thereafter, including the number of shares available under
      Section 4, (ii) the number and kind of shares of Stock by which annual
      per-person Award limitations are measured under Section 5, (iii) the number
      and
      kind of shares of Stock subject to or deliverable in respect of outstanding
      Awards, (iv) any performance condition based on stock price and (v) the exercise
      price, grant price or purchase price relating to any Award or, if deemed
      appropriate, the Committee may make provision for a payment of cash or property
      to the holder of an outstanding Award (subject to Section 11(k)). In addition,
      the Committee is authorized to make adjustments
      in the terms and conditions of, and the criteria included in, Awards (including
      Performance Awards and performance goals and any hypothetical funding pool
      relating thereto) in recognition of unusual or nonrecurring events (including,
      without limitation, events described in the preceding sentence, as well as
      acquisitions and dispositions of businesses and assets) affecting the Company,
      any subsidiary or affiliate or other business unit, or the financial statements
      of the Company or any subsidiary or affiliate, or in response to changes in
      applicable laws, regulations, accounting principles, tax rates and regulations
      or business conditions or in view of the Committee's assessment of the business
      strategy of the Company, any subsidiary or affiliate or business unit thereof,
      performance of comparable organizations, economic and business conditions,
      personal performance of a Participant, and any other circumstances deemed
      relevant; provided that no such adjustment shall be authorized or made if and
      to
      the extent that the existence of such authority (i) would cause Options, SARs,
      or Performance Awards granted under the Plan to Participants designated by
      the
      Committee as Covered Employees and intended to qualify as “performance-based
      compensation” under Code Section 162(m) and regulations thereunder to otherwise
      fail to qualify as “performance-based compensation” under Code Section 162(m)
      and regulations thereunder, or (ii) would cause the Committee to be deemed
      to
      have authority to change the targets, within the meaning of Treasury Regulation
      § 1.162-27(e)(4)(vi), under the performance goals relating to Options or SARs
      granted to Covered Employees and intended to qualify as “performance-based
      compensation” under Code Section 162(m) and regulations thereunder. In
      furtherance of the foregoing, in the event of an “equity restructuring” as
      defined in FAS 123R which affects the Stock, a Participant shall have a legal
      right to an adjustment to the Participant’s Award which shall preserve without
      enlarging the value of the Award, with the manner of such adjustment to be
      determined by the Committee in its discretion, and subject to any limitation
      on
      this right set forth in the applicable Award agreement. Other provisions of
      this
      Section 11(c) notwithstanding, in connection with any transaction in which
      Stock
      will be cancelled or exchanged for consideration, the value of an Award to
      be
      preserved shall be based on the value of the consideration to be received by
      a
      holder of a share of Stock immediately before the consummation of the
      transaction. Notwithstanding the foregoing, no adjustment shall be made under
      this Section 11(c) if the Committee determines that such action could cause
      any
      Award to fail to satisfy the conditions of any applicable exception from the
      requirements of Code Section 409A or otherwise could subject the Participant
      to
      the tax penalty imposed under Code Section 409A in respect of an outstanding
      Award or constitute a modification, extension or renewal of an ISO within the
      meaning of Code Section 424(h). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (d)
      Tax
      Provisions.
      

    

    (i)
      Withholding. The Company and any subsidiary or affiliate is authorized to
      withhold from any Award granted, any payment relating to an Award under the
      Plan, including from a distribution of Stock, or any payroll or other payment
      to
      a Participant, amounts of withholding and other taxes due or potentially payable
      in connection with any transaction involving an Award, and to take such other
      action as the Committee may deem advisable to enable the Company and
      Participants to satisfy obligations for the payment of withholding taxes and
      other tax obligations relating to any Award. This authority shall include
      authority to withhold or receive Stock or other property and to make cash
      payments in respect thereof in satisfaction of a Participant's withholding
      obligations, either on a mandatory or elective basis in the discretion of the
      Committee, or in satisfaction of other tax obligations. Other provisions of
      the
      Plan notwithstanding, only the minimum amount of Stock deliverable in connection
      with an Award necessary to satisfy statutory withholding requirements will
      be
      withheld, unless withholding of any additional amount of Stock will not result
      in additional accounting expense to the Company. 

    

    (ii)
      Required Consent to and Notification of Code Section 83(b) Election. No election
      under Section 83(b) of the Code (to include in gross income in the year of
      transfer the amounts specified in Code Section 83(b)) or under a similar
      provision of the laws of a jurisdiction outside the United States may be made
      unless expressly permitted by the terms of the Award document or by action
      of
      the Committee in writing prior to the making of such election. In any case
      in
      which a Participant is permitted to make such an election in connection with
      an
      Award, the Participant shall notify the Company of such election within ten
      days
      of filing notice of the election with the Internal Revenue Service or other
      governmental authority, in addition to any filing and notification required
      pursuant to regulations issued under Code Section 83(b) or other applicable
      provision. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (iii)
      Requirement of Notification Upon Disqualifying Disposition Under Code Section
      421(b). If any Participant shall make any disposition of shares of Stock
      delivered pursuant to the exercise of an ISO under the circumstances described
      in Code Section 421(b) (i.e., a disqualifying disposition), such Participant
      shall notify the Company of such disposition within ten days thereof.

    

    (e)
      Changes
      to the Plan.
      The
      Board may amend, suspend or terminate the Plan or the Committee's authority
      to
      grant Awards under the Plan without the consent of stockholders or Participants;
      provided, however, that any amendment to the Plan shall be submitted to the
      Company's stockholders for approval not later than the earliest annual meeting
      for which the record date is at or after the date of such Board action (1)
      if
      such stockholder approval is required by any federal or state law or regulation
      or rule of any stock exchange or automated quotation system on which the Stock
      may then be listed or quoted, (2) if such amendment would materially increase
      the number of shares reserved for issuance and delivery under the Plan, or
      (3)
      to ensure that ISOs granted under the Plan are qualified under Code Section
      422,
      and the Board may otherwise, in its discretion, determine to submit other
      amendments to the Plan to stockholders for approval. The Committee is authorized
      to amend outstanding awards, except to the extent the proposed amended term
      is
      not then permitted under the Plan. The Board and Committee may not amend
      outstanding Awards (including by means of an amendment to the Plan) without
      the
      consent of an affected Participant if such an amendment would materially and
      adversely affect the rights of such Participant with respect to the outstanding
      Award (for this purpose, actions that alter the timing of federal income
      taxation of a Participant will not be deemed material unless such action results
      in an income tax penalty for the Participant, and any discretion that is
      reserved by the Board or Committee with respect to an Award is unaffected by
      this provision). The cancellation of an Award that complies with the provisions
      of Section 9 shall not be considered a violation of the immediately preceding
      sentence. Any authority of the Committee to waive or modify an Award term after
      the Award has been granted does not permit waiver or modification of a term
      that
      would be mandatory under the Plan for any Award newly granted at the date of
      the
      waiver or modification. 

    

    (f)
      Right
      of Setoff.
      The
      Company or any subsidiary or affiliate may, to the extent permitted by
      applicable law, deduct from and set off against any amounts the Company or
      a
      subsidiary or affiliate may owe to the Participant from time to time, including
      amounts payable in connection with any Award, owed as wages, fringe benefits,
      or
      other compensation owed to the Participant, such amounts as may be owed by
      the
      Participant to the Company, including but not limited to amounts owed under
      Section 10, although the Participant shall remain liable for any part of the
      Participant's payment obligation not satisfied through such deduction and
      setoff. By accepting any Award granted hereunder, the Participant agrees to
      any
      deduction or setoff under this Section 11(f). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)
      Unfunded
      Status of Awards; Creation of Trusts.
      The
      Plan is intended to constitute an “unfunded” plan for incentive and deferred
      compensation (except for awards involving the transfer of forfeitable property,
      such as Restricted Stock). With respect to any payments not yet made to a
      Participant or obligation to deliver Stock pursuant to an Award, nothing
      contained in the Plan or any Award shall give any such Participant any rights
      that are greater than those of a general creditor of the Company; provided
      that
      the Committee may authorize the creation of trusts and deposit therein cash,
      Stock, other Awards or other property, or make other arrangements to meet the
      Company's obligations under the Plan. Such trusts or other arrangements shall
      be
      consistent with the “unfunded” status of the Plan unless the Committee otherwise
      determines with the consent of each affected Participant. 

    

    (h)
      Non-exclusivity
      of the Plan.
      Neither
      the adoption of the Plan by the Board nor its submission to the stockholders
      of
      the Company for approval shall be construed as creating any limitations on
      the
      power of the Board or a committee thereof to adopt such other incentive
      arrangements, apart from the Plan, as it may deem desirable, including incentive
      arrangements and awards which do not qualify under Code Section 162(m), and
      such
      other arrangements may be either applicable generally or only in specific cases.
      

    

    (i)
      Payments
      in the Event of Forfeitures; Fractional Shares.
      Unless
      otherwise determined by the Committee, in the event of a forfeiture of an Award
      with respect to which a Participant paid cash consideration, the Participant
      shall be repaid the amount of such cash consideration. No fractional shares
      of
      Stock shall be issued or delivered pursuant to the Plan or any Award. The
      Committee shall determine whether cash, other Awards or other property shall
      be
      issued or paid in lieu of such fractional shares or whether such fractional
      shares or any rights thereto shall be forfeited or otherwise eliminated.

    

    (j)
      Compliance
      with Code Section 162(m). It
      is the
      intent of the Company that Options and SARs granted to Covered Employees and
      other Awards designated as Awards to Covered Employees subject to Section 7
      shall constitute qualified “performance-based compensation” within the meaning
      of Code Section 162(m) and regulations thereunder, unless otherwise determined
      by the Committee at the time of grant of an Award. Accordingly, the terms of
      Sections 7(b), (c), and (d), including the definitions of Covered Employee
      and
      other terms used therein, shall be interpreted in a manner consistent with
      Code
      Section 162(m) and regulations thereunder. The foregoing notwithstanding,
      because the Committee cannot determine with certainty whether a given
      Participant will be a Covered Employee with respect to a fiscal year that has
      not yet been completed, the term Covered Employee as used herein shall mean
      only
      a person designated by the Committee as likely to be a Covered Employee with
      respect to a specified fiscal year. If any provision of the Plan or any Award
      document relating to a Performance Award that is designated as intended to
      comply with Code Section 162(m) does not comply or is inconsistent with the
      requirements of Code Section 162(m) or regulations thereunder, such provision
      shall be construed or deemed amended to the extent necessary to conform to
      such
      requirements, and no provision shall be deemed to confer upon the Committee
      or
      any other person discretion to increase the amount of compensation otherwise
      payable in connection with any such Award upon attainment of the applicable
      performance objectives in a manner that would fail to comply with applicable
      regulations under Code Section 162(m). 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (k)
      Certain
      Limitations on Awards to Ensure Compliance with Code Section
      409A 

    (i)
      409A
      Awards and Deferrals. Other
      provisions of the Plan notwithstanding, the terms of any 409A Award (which
      for
      this purpose means only such an Award held by an employee subject to United
      States federal income tax), including any authority of the Company and rights
      of
      the Participant with respect to the 409A Award, shall be limited to those terms
      permitted under Section 409A, and any terms not permitted under Code Section
      409A shall be modified and limited to the extent necessary to conform with
      Section 409A but only to the extent that such modification or limitation is
      permitted under Code Section 409A and the regulations and guidance issued
      thereunder. The following rules will apply to 409A Awards: 

    

    A.
      If a
      Participant is permitted to elect to defer an Award or any payment under an
      Award, such election will be permitted only at times in compliance with Code
      Section 409A;

    B.
      The
      Committee may, in its discretion, require or permit on an elective basis a
      change in the distribution terms applicable to 409A Awards (and Non-409A Awards
      that qualify for the short-term deferral exemption under Code Section 409A)
      during 2007 in accordance with, and to the fullest extent permitted by,
      applicable IRS guidance under Code Section 409A, provided that any modifications
      to an outstanding Award or permitted election of different deferral periods
      may
      not otherwise increase the benefits to a Participant or the costs of such Award
      to the Company (aside from administrative costs and costs relating to the timing
      of tax deductions);

    C.
      Exercise and Distribution. Except as provided in Section 11(k)(i)D hereof,
      no
      409A Award shall be exercisable (if the exercise would result in a distribution)
      or otherwise distributable to a Participant (or his or her beneficiary) earlier
      than upon one of the following:

    1.
      Specified Time. A specified time or a fixed schedule set forth in the written
      instrument evidencing the 409A Award.

    2.
      Separation from Service. Separation from service (within the meaning of Code
      Section 409A) by the Participant; provided, however, that if the Participant
      is
      a “key employee” (as defined in Code Section 416(i) without regard to paragraph
      (5) thereof) and any of the Company’s Stock is publicly traded on an established
      securities market or otherwise, exercise or distribution under this Section
      11(k)(i)C2 may not be made before the date that is six months after the date
      of
      separation from service.

    3.
      Death.
      The date of death of the Participant.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.
      Disability. The date the Participant becomes disabled (as defined
      below).

    5.
      Unforeseeable Emergency. The occurrence of an unforeseeable emergency (as
      defined below), but only if the net value (after payment of the exercise price)
      of the number of shares of Stock that become issuable does not exceed the
      amounts necessary to satisfy such emergency plus amounts necessary to pay taxes
      reasonably anticipated as a result of the exercise, after taking into account
      the extent to which the emergency is or may be relieved through reimbursement
      or
      compensation by insurance or otherwise or by liquidation of the Participant’s
      other assets (to the extent such liquidation would not itself cause severe
      financial hardship).

    6.
      Change
      in Control Event. The occurrence of a Change in Control Event (as defined
      below), including the Company’s discretionary exercise of the right to
      accelerate vesting of such grant upon a Change in Control Event or to terminate
      the Plan or any 409A Award granted hereunder within 12 months of the Change
      in
      Control Event.

    D.
      No
      Acceleration. The exercise or distribution of a 409A Award may not be
      accelerated prior to the time specified in Section 11(k)(i)D hereof, except
      in
      the case of one of the following events:

    

    1.
      Domestic Relations Order. The 409A Award may permit the acceleration of the
      exercise or distribution time or schedule to an individual other than the
      Participant as may be necessary to comply with the terms of a domestic relations
      order (as defined in Section 414(p)(1)(B) of the Code).

    2.
      Conflicts of Interest. The 409A Award may permit the acceleration of the
      exercise or distribution time or schedule as may be necessary to comply with
      the
      terms of a certificate of divestiture (as defined in Section 1043(b)(2) of
      the
      Code).

    3.
      Change. The Committee may exercise the discretionary right to accelerate the
      vesting of such 409A Award upon a Change in Control or to terminate the Plan
      or
      any 409A Award granted thereunder within 12 months of the Change in Control
      Event and cancel the 409A Award for compensation.

    

    E.
      Definitions. Solely for purposes of this Section 11(k) and not for other
      purposes of the Plan, the following terms shall be defined as set forth
      below:

    

    1.
      “Change in Control” means the occurrence of a change in the ownership of the
      Company, a change in effective control of the Company, or a change in the
      ownership of a substantial portion of the assets of the Company (as defined
      in
      Treasury Regulation § 1.409A-3(i)(5)(vi)).

    2.
      “Disabled” means a Participant who (i) is unable to engage in any substantial
      gainful activity by reason of any medically determinable physical or mental
      impairment that can be expected to result in death or can be expected to last
      for a continuous period of not less than 12 months, or (ii) is, by reason of
      any
      medically determinable physical or mental impairment that can be expected to
      result in death or can be expected to last for a continuous period of not less
      than 12 months, receiving income replacement benefits for a period of not less
      than three months under an accident and health plan covering employees of the
      Company or its Subsidiaries.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.
      “Unforeseeable Emergency” means a severe financial hardship to the Participant
      resulting from an illness or accident of the Participant, the Participant’s
      spouse, or a dependent (as defined in Code Section 152, without regard to Code
      Sections 152(b)(1), (b)(2), and (d)(1)(B)) of the Participant, loss of the
      Participant’s property due to casualty, or similar extraordinary and
      unforeseeable circumstances arising as a result of events beyond the control
      of
      the Participant.

    F.
      In the
      case of any distribution of a 409A Award, subject to any more restrictive timing
      rule contained in an applicable Award agreement or other governing document,
      the
      distribution shall be made at a date (specified by the Company without control
      by the Participant) not later than two and one half months after the date at
      which the settlement of the Award is specified to occur but, in the case of
      a
      distribution “at a specified time or pursuant to a fixed schedule” subject to
      Treasury Regulation 1.409A-3(i)(1), in no event after the end of the
      Participant’s taxable year in which the settlement date falls;

    G.
      If any
      portion of an Award that is scheduled to vest at a single specified date (a
      vesting “tranche”) is partly deemed a 409A Award and partly deemed exempt from
      Code Section 409A (as a short-term deferral or otherwise), the time of
      settlement of the entire tranche will be governed by the distribution rules
      applicable to the 409A Award; and

    H.
      The
      rules applicable to 409A Awards under this Section 11(k)(i) constitute further
      restrictions on terms of Awards set forth elsewhere in this Plan. Thus, for
      example, a 409A Option/SAR shall be subject to restrictions, including
      restrictions on rights otherwise specified in Section 6(b) or 6(c), in order
      that such Award shall not result in constructive receipt of income before
      exercise or tax penalties under Code Section 409A.

    (ii)
      Rules
      Applicable to Certain Participants Transferred
      to
Affiliates.
      For
      purposes of determining a separation from service (where the use of the
      following modified definition is based upon legitimate business criteria),
      in
      applying Code Sections 1563(a)(1), (2) and (3) for purposes of determining
      a
      controlled group of corporations under Code Section 414(b), the language “at
      least 20 percent” shall be used instead of “at least 80 percent” at each place
      it appears in Sections 1563(a)(1), (2) and (3), and in applying Treasury
      Regulation § 1.414(c)-2 (or any successor provision) for purposes of determining
      trades or businesses (whether or not incorporated) that are under common control
      for purposes of Code Section 414(c), the language “at least 20 percent” shall be
      used instead of “at least 80 percent” at each place it appears in Treasury
      Regulation § 1.414(c)-2. 

    (iii)
      Distributions
      Upon Vesting. In
      the
      case of any Award providing for a distribution upon the lapse of a risk of
      forfeiture, if the timing of such distribution is not otherwise specified in
      the
      Plan or an Award agreement or other governing document, the distribution shall
      be made not later than March 15 of the year following the year in which the
      risk
      of forfeiture lapsed. 

    (iv)
      Scope
      and Application of this Provision.
      For
      purposes of this Section 11(k), references to a term or event (including any
      authority or right of the Company or a Participant) being “permitted” under Code
      Section 409A mean that the term or event will not cause the Participant to
      be
      deemed to be in constructive receipt of compensation relating to the 409A Award
      prior to the distribution of cash, shares or other property or to be liable
      for
      payment of interest or a tax penalty under Section 409A. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (l)
      Governing
      Law.
      The
      validity, construction, and effect of the Plan, any rules and regulations
      relating to the Plan and any Award document shall be determined in accordance
      with the laws of the State of Delaware, without giving effect to principles
      of
      conflicts of laws, and applicable provisions of federal law. 

    

    (m)
      Awards
      to Participants Outside the United States.
      The
      Committee may modify the terms of any Award under the Plan made to or held
      by a
      Participant who is then resident or primarily employed outside of the United
      States, or establish one or more sub-plans for such Participants, in any manner
      deemed by the Committee to be necessary or appropriate in order that such Award
      shall conform to laws, regulations, and customs of the country in which the
      Participant is then resident or primarily employed, or so that the value and
      other benefits of the Award to the Participant, as affected by foreign tax
      laws
      and other restrictions applicable as a result of the Participant's residence
      or
      employment abroad shall be comparable to the value of such an Award to a
      Participant who is resident or primarily employed in the United States. An
      Award
      may be modified under this Section 11(m) in a manner that is inconsistent with
      the express terms of the Plan, so long as such modifications will not contravene
      any applicable law or regulation or result in actual liability under Section
      16(b) for the Participant whose Award is modified. 

    

    (n)
      Limitation
      on Rights Conferred under Plan.
      Neither
      the Plan nor any action taken hereunder shall be construed as (i) giving any
      Eligible Person or Participant the right to continue as an Eligible Person
      or
      Participant or in the employ or service of the Company or a subsidiary or
      affiliate, (ii) interfering in any way with the right of the Company or a
      subsidiary or affiliate to terminate any Eligible Person's or Participant's
      employment or service at any time (subject to the terms and provisions of any
      separate written agreements), (iii) giving an Eligible Person or Participant
      any
      claim to be granted any Award under the Plan or to be treated uniformly with
      other Participants and employees, or (iv) conferring on a Participant any of
      the
      rights of a stockholder of the Company unless and until the Participant is
      duly
      issued or transferred shares of Stock in accordance with the terms of an Award
      or an Option or SAR is duly exercised. Except as expressly provided in the
      Plan
      and an Award document, neither the Plan nor any Award document shall confer
      on
      any person other than the Company and the Participant any rights or remedies
      thereunder. Any Award shall not be deemed compensation for purposes of computing
      benefits under any retirement plan of the Company or any subsidiary or affiliate
      and shall not affect any benefits under any other benefit plan at any time
      in
      effect under which the availability or amount of benefits is related to the
      level of compensation (unless required by any such other plan or arrangement
      with specific reference to Awards under this Plan). None of the Committee,
      the
      Board, the Company, any affiliate of the Company or any officer or employee
      of
      the Company or affiliate of the Company shall have any liability for any tax
      consequences to a Participant (including under Code Section 409A) that may
      arise
      due to the grant, vesting, exercise, modification or termination of any Award
      or
      otherwise in connection with an Award. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (o)
      Severability.
      If any
      of the provisions of this Plan or any Award document is finally held to be
      invalid, illegal or unenforceable (whether in whole or in part), such provision
      shall be deemed modified to the extent, but only to the extent, of such
      invalidity, illegality or unenforceability, and the remaining provisions shall
      not be affected thereby; provided, that, if any of such provisions is finally
      held to be invalid, illegal, or unenforceable because it exceeds the maximum
      scope determined to be acceptable to permit such provision to be enforceable,
      such provision shall be deemed to be modified to the minimum extent necessary
      to
      modify such scope in order to make such provision enforceable hereunder. No
      rule
      of strict construction shall be applied against the Company, the Committee,
      or
      any other person in the interpretation of any terms of the Plan, Award, or
      agreement or other document relating thereto. 

    

    (p)
      Plan
      Effective Date and Termination.
      The
      Plan shall become effective if, and at such time as, the stockholders of the
      Company have approved it by the affirmative votes of the holders of a majority
      of the voting securities of the Company present, or represented, and entitled
      to
      vote on the subject matter at a duly held meeting of stockholders, which shall
      be the Effective Date. Upon such approval of the Plan by the stockholders of
      the
      Company, no further awards shall be granted under the Preexisting Plan, but
      any
      outstanding awards under the Preexisting Plan shall continue in accordance
      with
      their terms (and any authority to amend those awards will continue under the
      Preexisting Plan). Unless earlier terminated by action of the Board of
      Directors, the authority of the Committee to make grants under the Plan shall
      terminate on the date that is ten years after the latest date upon which
      stockholders of the Company have approved the Plan, and the Plan will remain
      in
      effect until such time as no Stock remains available for delivery under the
      Plan
      and the Company has no further rights or obligations under the Plan with respect
      to outstanding Awards under the Plan.

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