Document:

SECURITY AGREEMENT

      SECURITY AGREEMENT (as amended, restated, supplemented or otherwise
modified from time to time in accordance herewith and including all attachments,
exhibits and schedules hereto, the "Agreement"), dated as of November 30, 2006,
made by Remote Dynamics, Inc., a Delaware corporation (the "Grantor"), in favor
of the secured parties listed on Exhibit A to this Agreement and their permitted
successors and assigns (collectively, the "Secured Parties").

      WHEREAS, the Grantor has issued or will issue separate series B
subordinated secured convertible promissory notes and separate original issue
discount series B subordinated secured convertible promissory notes (the
"Notes") to the Secured Parties pursuant to a Note and Warrant Purchase
Agreement, dated as of November 30, 2006 (the "Purchase Agreement"), by and
among the Grantor and the Secured Parties; and

      WHEREAS, the Secured Parties and the Grantor agree that the Grantor
execute and deliver to the Secured Parties a security agreement providing for
the grant to the Secured Parties of a continuing security interest in all
personal property and assets of the Grantor, all in substantially the form
hereof to secure all Obligations (hereinafter defined).

      NOW, THEREFORE, the parties agree as follows:

                             ARTICLE I. Definitions

      Section 1.1. Definition of Terms Used Herein. All capitalized terms used
herein and not defined herein have the respective meanings provided therefor in
the Purchase Agreement or the Notes, as applicable. All terms defined in the
Uniform Commercial Code (hereinafter defined) as in effect from time to time and
used herein and not otherwise defined herein (whether or not such terms are
capitalized) have the same definitions herein as specified therein.

      Section 1.2. Definition of Certain Terms Used Herein. As used herein, the
following terms have the following meanings:

      "Collateral" means all accounts receivable of the Grantor and all personal
and fixed property of every kind and nature, including, without limitation, all
furniture, fixtures, equipment, raw materials, inventory, as extracted
collateral, or other goods, accounts, contract rights, rights to the payment of
money, insurance refund claims and all other insurance claims and proceeds, tort
claims, chattel paper, documents, instruments, securities and other investment
property, deposit accounts, rights to proceeds of letters of credit and all
general intangibles including, without limitation, all tax refund claims,
license fees, patents, patent licenses, patent applications, trademarks,
trademark licenses, trademark applications, trade names, copyrights, copyright
licenses, copyright applications, rights to sue and recover for past
infringement of patents, trademarks and copyrights, computer programs, computer
software, engineering drawings, service marks, customer lists, goodwill, and all
licenses, permits, agreements of any kind or nature pursuant to which the
Grantor possesses, uses or has authority to possess or use property (whether
tangible or intangible) of others or others possess, use or have authority to
possess or use property (whether tangible or intangible) of the Grantor, and all
recorded data of any kind or nature, regardless of the medium of recording
including, without limitation, all books and records, software, writings, plans,
specifications and schematics, whether now owned or hereinafter acquired by the
Grantor; and all proceeds and products of each of the foregoing.

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      "Default" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured, waived, or otherwise
remedied during such time) constitute an Event of Default.

      "Event of Default" has the meaning specified in the Notes.

      "Indemnitees" has the meaning specified in Section 7.5(b).

      "Lien" means: (i) any interest in property securing an obligation owed to,
or a claim by, a Person other than the owner of the property, whether such
interest is based on the common law, statute, or contract, and including a
security interest, charge, claim, or lien arising from a mortgage, deed of
trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement,
agreement, security agreement, conditional sale or trust receipt or a lease,
consignment or bailment for security purposes; (ii) to the extent not included
under clause (i), any reservation, exception, encroachment, easement,
right-of-way, covenant, condition, restriction, lease or other title exception
or encumbrance affecting property; and (iii) any contingent or other agreement
to provide any of the foregoing.

      "Notes" has the meaning assigned to such term in the first recital of this
Agreement.

      "Obligations" means all indebtedness, liabilities, obligations, covenants
and duties of the Grantor to the Secured Parties of every kind, nature and
description, direct or indirect, absolute or contingent, due or not due,
contractual or tortious, liquidated or unliquidated, arising by operation of law
or otherwise, now existing of hereafter arising under or in connection with the
Notes, this Agreement or the other Transaction Documents.

      "Registered Organization" means an entity formed by filing a registration
document with a United States Governmental Authority, such as a corporation,
limited partnership or limited liability company.

      "Security Interest" has the meaning specified in Section 2.1 of this
Agreement.

      "Uniform Commercial Code" means the Uniform Commercial Code from time to
time in effect in the State of New York.

                          ARTICLE II. Security Interest

      Section 2.1. Security Interest. As security for the payment and
performance, in full of the Obligations, and any extensions, renewals,
modifications or refinancings of the Obligations, the Grantor hereby bargains,
sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and
transfers to the Secured Parties, and hereby grants to the Secured Parties,
their successors and assigns, a security interest in, all of such Grantor's
right, title and interest in, to and under the Collateral and all hereinafter
acquired Collateral (the "Security Interest").

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      Section 2.2. No Assumption of Liability. The Security Interest is granted
as security only and shall not subject the Secured Parties to, or in any way
alter or modify, any obligation or liability of the Grantor with respect to or
arising out of the Collateral.

                   ARTICLE III. Representations and Warranties

      The Grantor represents and warrants to the Secured Parties that:

      Section 3.1. Title and Authority. The Grantor has good and valid rights in
and title to the Collateral with respect to which it has purported to grant a
security interest hereunder and has full power and authority to grant to the
Secured Parties the Security Interest and to execute, deliver and perform its
obligations in accordance with the terms of this Agreement, without the consent
or approval of any other Person other than any consent or approval which has
been obtained.

      Section 3.2. Filings; Actions to Achieve Perfection. Fully executed
Uniform Commercial Code financing statements (including fixture filings, as
applicable) or other appropriate filings, recordings or registrations containing
a description of the Collateral have been delivered to the Secured Parties for
filing in each United States governmental, municipal or other office specified
in Schedule A, which are all the filings, recordings and registrations that are
necessary to publish notice of and protect the validity of and to establish a
legal, valid and perfected security interest in favor of the Secured Parties in
respect of all Collateral in which the Security Interest may be perfected by
filing, recording or registration in the United States (or any political
subdivision thereof) and its territories and possessions, and no further or
subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary in any such jurisdiction, except as provided under
applicable law with respect to the filing of continuation statements or with
respect to the filing of amendments or new filings to reflect the change of the
Grantor's name, location, identity or corporate structure. The Grantor's name is
listed in the preamble of this Agreement identically to how it appears on its
certificate of incorporation or other organizational documents.

      Section 3.3. Validity and Priority of Security Interest. The Security
Interest constitutes (a) a legal and valid security interest in all the
Collateral securing the payment and performance of the Obligations, (b) subject
only to the filings described in Section 3.2 above and other previously
perfected security interests in the Collateral listed on Schedule 3.3 to this
Agreement ("Existing Liens"), a perfected security interest in all Collateral in
which a security interest may be perfected by filing, recording or registration
in the United States pursuant to the Uniform Commercial Code or other applicable
law in the United States (or any political subdivision thereof) and its
territories and possessions or any other country, state or nation (or any
political subdivision thereof). The Security Interest is and shall be
subordinate to any other Existing Lien on any of the Collateral.

      Section 3.4. Absence of Other Liens. The Grantor's Collateral is owned by
the Grantor free and clear of any Lien other than Existing Liens. Without
limiting the foregoing and except as set forth on Schedule 3.4 to this
Agreement, the Grantor has not filed or consented to any filing of any financing
statement or similar filing in favor of any Person other than the Secured
Parties, nor permitted the granting or assignment of a security interest or
permitted perfection of any security interest in the Collateral in favor of any
Person other than the Secured Parties. The Grantor's having possession of all
instruments, certificates and cash constituting Collateral from time to time and
the filing of financing statements in the offices referred to in Schedule A
hereto results in the perfection of such security interest. Such Security
Interest is, or in the case of Collateral in which the Grantor obtain rights
after the date hereof, will be, a perfected security interest. Such notices,
filings and all other action necessary or desirable to perfect and protect such
security interest have been duly taken.

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      Section 3.5. Valid and Binding Obligation. This Agreement constitutes the
legal, valid and binding obligation of the Grantor, enforceable against the
Grantor in accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors' rights generally, (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, and (iii) to the extent the indemnification
provisions contained in this Agreement may be limited by applicable federal or
state securities laws.

                              ARTICLE IV. Covenants

      Section 4.1. Change of Name; Location of Collateral; Place of Business,
State of Formation or Organization.

            (a) The Grantor shall notify the Secured Parties in writing at least
      eleven (11) days prior to any change (i) in its corporate name or in any
      trade name used to identify it in the conduct of its business or in the
      ownership of its properties, (ii) in the location of its chief executive
      office, its principal place of business, any office in which it maintains
      books or records relating to Collateral owned by it (including the
      establishment of any such new office or facility), (iii) in its identity
      or corporate structure such that a filed filing made under the Uniform
      Commercial Code becomes misleading or (iv) in its Federal Taxpayer
      Identification Number. Furthermore, the Grantor shall not effect or permit
      any change referred to in the preceding sentence unless all filings have
      been made under the Uniform Commercial Code or otherwise that are required
      in order for the Secured Parties to continue at all times following such
      change to have a valid, legal and perfected security interest in all the
      Collateral subject to the Existing Liens.

            (b) Without limiting Section 4.1(a), without the prior written
      consent of the Secured Parties in each instance, the Grantor shall not
      change its (i) principal residence, if it is an individual, (ii) place of
      business, if it has only one place of business and is not a Registered
      Organization, (iii) principal place of business, if it has more than one
      place of business and is not a Registered Organization, or (iv) state of
      incorporation, formation or organization, if it is a Registered
      Organization.

      Section 4.2. Records. The Grantor shall maintain, at its own cost and
expense, such complete and accurate records with respect to the Collateral owned
by it as is consistent with its current practices and in accordance with such
prudent and standard practices used in industries that are the same as or
similar to those in which the Grantor is engaged, but in any event to include
complete accounting records indicating all payments and proceeds received with
respect to any part of the Collateral, and, at such time or times as the Secured
Parties may reasonably request, promptly to prepare and deliver to the Secured
Parties a duly certified schedule or schedules in form and detail satisfactory
to the Secured Parties showing the identity, amount and location of any and all
Collateral.

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<PAGE>

      Section 4.3. Periodic Certification; Notice of Changes. In the event there
should at any time be any change in the information represented and warranted
herein or in the documents and instruments executed and delivered in connection
herewith, the Grantor shall immediately notify the Secured Parties in writing of
such change (this notice requirement shall be in extension of and shall not
limit or relieve the Grantor of any other covenants hereunder).

      Section 4.4. Protection of Security. The Grantor shall, at its own cost
and expense, take any and all actions reasonably necessary to defend title to
the Collateral against all persons and to defend the Security Interest of the
Secured Parties in the Collateral and the priority thereof against any Lien
other than the Existing Liens.

      Section 4.5. Inspection and Verification. The Secured Parties and such
persons as the Secured Parties may reasonably designate shall, upon reasonable
advanced notice and during normal business hours, have the right to inspect the
Collateral, all records related thereto (and to make extracts and copies from
such records) and the premises upon which any of the Collateral is located, to
discuss the Grantor's affairs with the officers of the Grantor and its
independent accountants and to verify under reasonable procedures the validity,
amount, quality, quantity, value, condition and status of, or any other matter
relating to, the Collateral, including, in the case of collateral in the
possession of any third Person, by contacting any account debtor or third Person
possessing such Collateral for the purpose of making such a verification.
Out-of-pocket expenses in connection with any inspections by representatives of
the Secured Parties shall be (a) the obligations of the Grantor with respect to
any inspection after the Secured Parties' demand payment of the Notes or (b) the
obligation of the Secured Parties in any other case.

      Section 4.6. Taxes; Encumbrances. At their option, the Secured Parties may
discharge, Liens other than Existing Liens at any time levied or placed on the
Collateral and may pay for the maintenance and preservation of the Collateral to
the extent the Grantor fails to do so and the Grantor shall reimburse the
Secured Parties on demand for any payment made or any expense incurred by the
Secured Parties pursuant to the foregoing authorization; provided, however, that
nothing in this Section shall be interpreted as excusing the Grantor from the
performance of, or imposing any obligation on the Secured Parties to cure or
perform, any covenants or other obligation of the Grantor with respect to any
Lien or maintenance or preservation of Collateral as set forth herein.

      Section 4.7. Use and Disposition of Collateral. The Grantor shall not make
or permit to be made an assignment, pledge or hypothecation of any Collateral or
shall grant any other Lien in respect of the Collateral without the prior
written consent of the Secured Parties. The Grantor shall not make or permit to
be made any transfer of any Collateral other than with respect to Existing Liens
and other liens approved by the Secured Parties and the Grantor shall remain at
all times in possession of the Collateral owned by it except in the ordinary
course of business.

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      Section 4.8. Insurance/Notice of Loss. Within a reasonable period of time
following the date of this Agreement, Grantor, at its own expense, shall
maintain or cause to be maintained insurance covering physical loss or damage to
the Collateral as described on Schedule 4.8 to this Agreement. In extension of
the foregoing and without limitation, such insurance shall be payable to the
Secured Parties as loss payee under a "standard" loss payee clause, and the
Secured Parties shall be listed as an "additional insured" on Grantor's general
liability insurance. Such insurance shall not be terminated, cancelled or not
renewed for any reason, including non-payment of insurance premiums, unless the
insurer shall have provided the Secured Parties at least 30 days prior written
notice. Grantor irrevocably makes, constitutes and appoints the Secured Parties
(and all officers, employees or agents designated by the Secured Parties) as its
true and lawful agent and attorney-in-fact for the purpose, at any time
following the Secured Parties' demand for payment of the Notes during the
continuance of an Event of Default, of making, settling and adjusting claims in
respect of Collateral under policies of insurance, endorsing the name of Grantor
on any check, draft, instrument or other item of payment for the proceeds of
such policies of insurance and for making all determinations and decisions with
respect thereto. In the event that Grantor at any time or times shall fail to
obtain or maintain any of the policies of insurance required hereby or to pay
any premium in whole or part relating thereto, the Secured Parties may, without
waiving or releasing any obligation or liability of Grantor hereunder, in their
sole discretion, obtain and maintain such policies of insurance and pay such
premium and take any other actions with respect thereto as the Secured Parties
reasonably deem advisable. All sums disbursed by the Secured Parties in
connection and in accordance with this Section, including reasonable attorneys'
fees, court costs, expenses and other charges relating thereto, shall be payable
upon demand, by Grantor to the Secured Parties and shall be additional
Obligations secured hereby. Grantor shall promptly notify the Secured Parties if
any material portion of the Collateral owned or held by Grantor is damaged or
destroyed. The proceeds of any casualty insurance in respect of any casualty
loss of any of the Collateral shall (i) so long as the Secured Parties have not
demanded payment of the Notes during the continuance of an Event of Default, be
disbursed to Grantor for direct application by Grantor solely to the repair or
replacement of Grantor's property so damaged or destroyed, and (ii) in all other
circumstances, be held by the Secured Parties as cash collateral for the
Obligations. The Secured Parties may, at their sole option, disburse from time
to time all or any part of such proceeds so held as cash collateral, upon such
terms and conditions as the Secured Parties may reasonably prescribe, for direct
application by the Secured Parties solely to the repair or replacement of
Grantor's property so damaged or destroyed, or Grantor may apply all or any part
of such proceeds to the Obligations.

      Section 4.9. Legend. Grantor shall legend, in form and manner satisfactory
to the Secured Parties, its accounts and its books, records and documents
evidencing or pertaining thereto with an appropriate reference to the fact that
such accounts have been assigned to the Secured Parties and that the Secured
Parties have a security interest therein.

                ARTICLE V. Further Assurances; Power of Attorney

      Section 5.1. Further Assurances. Grantor shall, at its own expense,
execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Secured Parties may
from time to time reasonably request to better assure, preserve, protect and
perfect the Security Interest and the rights and remedies created hereby,
including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith. If any amount payable under or in
connection with any of the Collateral shall be or become evidenced by any
promissory note or other instrument, such note or instrument shall be
immediately pledged and delivered to the Secured Parties, duly endorsed in a
manner satisfactory to the Secured Parties.

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      Section 5.2. Power of Attorney.

            (a) Grantor hereby irrevocably (as a power coupled with an interest)
constitutes and appoints the Collateral Agent (as defined in Section 7.14
hereof) and all officers, employees or agents designated by the Collateral
Agent, its attorney-in-fact with full power of substitution, for the benefit of
the Secured Parties,

            (i) to take all appropriate action and to execute all documents and
      instruments that may be necessary or desirable to accomplish the purposes
      of this Agreement, and without limiting the generality of the foregoing,
      Grantor hereby grants the power to file one or more financing statements
      (including fixture filings), continuation statements, filings with the
      United States Patent and Trademark Office or United States Copyright
      Office (or any successor office or any similar office in any other
      country) or other documents for the purpose of perfecting, confirming,
      continuing, enforcing or protecting the Security Interest granted by
      Grantor, without the signature of Grantor, and naming Grantor as debtor
      and the Collateral Agent and/or the Secured Parties as secured party; and

            (ii) at any time following the Secured Parties' demand for payment
      of the Notes during the continuance of an Event of Default (i) to receive,
      endorse, assign and/or deliver any and all notes, acceptances, checks,
      drafts, money orders or other evidences of payment relating to the
      Collateral or any part thereof; (ii) to demand, collect, receive payment
      of, give receipt for and give discharges and releases of all or any of the
      Collateral; (iii) to sign the name of Grantor on any invoice or bill of
      lading relating to any of the Collateral; (iv) to send verifications of
      accounts to any account debtor or any other Person liable for an account;
      (v) to commence and prosecute any and all suits, actions or proceedings at
      law or in equity in any court of competent jurisdiction to collect or
      otherwise realize on all or any of the Collateral or to enforce any rights
      in respect of any Collateral; (vi) to settle, compromise, compound, adjust
      or defend any actions, suits or proceeding relating to all or any of the
      Collateral; and (vii) to use, sell, assign, transfer, pledge, make any
      agreement with respect to or otherwise deal with all or any of the
      Collateral, and to do all other acts and things necessary to carry out the
      purposes of this Agreement, as fully and completely as though the Secured
      Parties were the absolute owner of the Collateral for all purposes;
      provided, however, that nothing herein contained shall be construed as
      requiring or obligating the Secured Parties to make any commitment or to
      make any inquiry as to the nature or sufficiency of any payment received
      by the Secured Parties, or to present or file any claim or notice, or to
      take any action with respect to the Collateral or any part thereof or the
      moneys due or to become due in respect thereof or any property covered
      thereby, and no action taken or omitted to be taken by the Secured Parties
      with respect to the Collateral or any part thereof shall give rise to any
      defense, counterclaim or offset in favor of Grantor or to any claim or
      action against the Secured Parties.

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            (b) The provisions of this Article shall in no event relieve Grantor
of any of its obligations hereunder with respect to the Collateral or any part
thereof or impose any obligation on the Secured Parties to proceed in any
particular manner with respect to the Collateral or any part thereof, or in any
way limit the exercise by the Secured Parties of any other or further right
which it may have on the date of this Agreement or hereafter, whether hereunder,
by law or otherwise.

                              ARTICLE VI. Remedies

      Section 6.1. Remedies upon Default.

            (a) Upon the occurrence and during the continuance of an Event of
      Default, Grantor agrees to deliver each item of its Collateral to the
      Secured Parties on demand, and it is agreed that the Secured Parties shall
      have the right to take any of or all the following actions at the same or
      different times (but at all times subject to any Existing Liens): with or
      without legal process and with or without prior notice or demand for
      performance, to take possession of the Collateral and without liability
      for trespass to enter any premises where the Collateral may be located for
      the purpose of taking possession of or removing the Collateral, exercise
      Grantor's right to bill and receive payment for completed work and,
      generally, to exercise any and all rights afforded to a secured party
      under the Uniform Commercial Code or other applicable law. Without
      limiting the generality of the foregoing, Grantor agrees that the Secured
      Parties shall have the right, subject to the mandatory requirements of
      applicable law, to sell or otherwise dispose of all or any part of the
      Collateral, at public or private sale or at any broker's board or on any
      securities exchange, for cash, upon credit or for future delivery as the
      Secured Parties shall deem appropriate. The Secured Parties shall be
      authorized at any such sale (if it deems it advisable to do so) to
      restrict the prospective bidders or purchasers to persons who will
      represent and agree that they are purchasing the Collateral for their own
      account for investment and not with a view to the distribution or sale
      thereof, and upon consummation of any such sale the Secured Parties shall
      have the right to assign, transfer and deliver to the purchaser or
      purchasers thereof the Collateral so sold. Each such purchaser at any such
      sale shall hold the property sold absolutely, free from any claim or right
      on the part of Grantor, and Grantor hereby waives (to the extent permitted
      by law) all rights of redemption, stay and appraisal which Grantor now has
      or may at any time in the future have under any rule of law or statute now
      existing or hereafter enacted.

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            (b) The Secured Parties shall give Grantor ten (10) days' written
      notice (which Grantor agrees is reasonable notice within the meaning of
      Section 9-504(3) of the Uniform Commercial Code) of the Secured Parties'
      intention to make any sale of Collateral. Such notice, in the case of a
      public sale, shall state the time and place for such sale and, in the case
      of a sale at a broker's board or on a securities exchange, shall state the
      board or exchange at which such sale is to be made and the day on which
      the Collateral, or portion thereof, will first be offered for sale at such
      board or exchange. Any such public sale shall be held at such time or
      times within ordinary business hours and at such place or places as the
      Secured Parties may fix and state in the notice (if any) of such sale. At
      any such sale, the Collateral, or portion thereof, to be sold may be sold
      in one lot as an entirety or in separate parcels, as the Secured Parties
      may (in their sole and absolute discretion) determine. The Secured Parties
      shall not be obligated to make any sale of any Collateral if it shall
      determine not to do so, regardless of the fact that notice of sale of such
      Collateral shall have been given. The Secured Parties may, without notice
      or publication, adjourn any public or private sale or cause the same to be
      adjourned from time to time by announcement at the time and place fixed
      for sale, and such sale may, without further notice, be made at the time
      and place to which the same was so adjourned. In case any sale of all or
      any part of the Collateral is made on credit or for future delivery, the
      Collateral so sold may be retained by the Secured Parties until the sale
      price is paid by the purchaser or purchasers thereof, but the Secured
      Parties shall not incur any liability in case any such purchaser or
      purchasers shall fail to take up and pay for the Collateral so sold and,
      in case of any such failure, such Collateral may be sold again upon like
      notice. At any public (or, to the extent permitted by law, private) sale
      made pursuant to this Section, the Secured Parties may bid for or
      purchase, free (to the extent permitted by law) from any right of
      redemption, stay, valuation or appraisal on the part of Grantor (all said
      rights being also hereby waived and released to the extent permitted by
      law), the Collateral or any part thereof offered for sale and may make
      payment on account thereof by using any claim then due and payable to the
      Secured Parties from Grantor as a credit against the purchase price, and
      the Secured Parties may, upon compliance with the terms of sale, hold,
      retain and dispose of such property without further accountability to
      Grantor therefor. For purposes hereof, a written agreement to purchase the
      Collateral or any portion thereof shall be treated as a sale thereof; the
      Secured Parties shall be free to carry out such sale pursuant to such
      agreement and Grantor shall not be entitled to the return of the
      Collateral or any portion thereof subject thereto, notwithstanding the
      fact that after the Secured Parties shall have entered into such an
      agreement all Obligations have been paid in full. As an alternative to
      exercising the power of sale herein conferred upon it, the Secured Parties
      may proceed by a suit or suits at law or in equity to foreclose this
      Agreement and to sell the Collateral or any portion thereof pursuant to a
      judgment or decree of a court or courts having competent jurisdiction or
      pursuant to a proceeding by a court-appointed receiver.

      Section 6.2. Application of Proceeds. The Secured Parties shall apply the
proceeds of any collection or sale of the Collateral, as well as any Collateral
consisting of cash, as follows:

            (a) FIRST, to the payment of all reasonable costs and expenses
incurred by the Secured Parties in connection with such collection or sale or
otherwise in connection with this Agreement or any of the Obligations, including
all court costs and the fees and expenses of its agents and legal counsel, and
any other costs or expenses incurred in connection with the exercise of any
right or remedy hereunder, under the Purchase Agreement, the Notes and the other
Transaction Documents;

            (b) SECOND, to the payment in full of the Obligations; and

            (c) THIRD, to Grantor, its successors or assigns, or to whomsoever
may be lawfully entitled to receive the same, or as a court of competent
jurisdiction may otherwise direct.

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      Subject to the foregoing, the Secured Parties shall have absolute
discretion as to the time of application of such proceeds, moneys or balances in
accordance with this Agreement. Upon any sale of the Collateral by the Secured
Parties (including pursuant to a power of sale granted by statute or under a
judicial proceeding), the receipt of any such proceeds, moneys or balances by
the Secured Parties or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Collateral so sold and such
purchaser or purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Secured Parties or such officer or
be answerable in any way for the misapplication thereof.

      Section 6.3. Grant of License to Use Intellectual Property. For the
purpose of enabling the Secured Parties to exercise rights and remedies under
this Article at such time as the Secured Parties shall be lawfully entitled to
exercise such rights and remedies, Grantor hereby grants to the Secured Parties
an irrevocable, non-exclusive license (exercisable without payment of royalty or
other compensation to Grantor) to use, license or sub-license any of the
Collateral consisting of intellectual property now owned or hereafter acquired
by Grantor, and wherever the same may be located, and including in such license
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer software and programs used for the
compilation or printout thereof. The use of such license by the Secured Parties
may be exercised, at the option of the Secured Parties, only following the
Secured Parties' demand for payment of the Notes during the continuance of an
Event of Default.

                           ARTICLE VII. Miscellaneous

      Section 7.1. Notices. All communications and notices hereunder to the
Grantor and to the Secured Parties shall (except as otherwise expressly
permitted herein) be in writing and delivered to the Grantor or the Secured
Parties, as the case may be, as provided in the Purchase Agreement.

      Section 7.2. Security Interest Absolute. All rights of the Secured Parties
hereunder, the Security Interest and all obligations of Grantor hereunder shall
be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Purchase Agreement, the Notes, any Transaction Document or
any agreement with respect to any of the Obligations or any other agreement or
instrument relating to any of the foregoing, (b) any change in the time, manner
or place of payment of, or in any other term of, all or any of the Obligations,
or any other amendment or waiver of or any consent to any departure from the
Purchase Agreement, the Notes, any Transaction Document or any other agreement
or instrument, (c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or
departure from any guarantee, securing or guaranteeing all or any of the
Obligations, or (d) any other circumstance that might otherwise constitute a
defense available to, or a discharge of, Grantor in respect of the Obligations
or this Agreement.

      Section 7.3. Survival of Agreement. All covenants, agreements,
representations and warranties made by Grantor herein and in the certificates or
other instruments prepared or delivered in connection with or pursuant to this
Agreement shall be considered to have been relied upon by the Secured Parties
and shall survive the making of the loan and the execution and delivery to the
Secured Parties of the Notes, regardless of any investigation made by the
Secured Parties or on their behalf; and shall continue in full force and effect
until this Agreement shall terminate.

                                       10
<PAGE>

      Section 7.4. Binding Effect; Several Agreement; Successors and Assigns.
This Agreement shall become effective as to Grantor when a counterpart hereof
executed on behalf of Grantor shall have been delivered to the Secured Parties
and a counterpart hereof shall have been executed on behalf of the Secured
Parties, and thereafter shall be binding upon Grantor and the Secured Parties
and their respective successors and assigns, and shall inure to the benefit of
Grantor, the Secured Parties and their respective successors and assigns, except
that Grantor shall not have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly contemplated by this
Agreement, the Purchase Agreement, the Notes or the other Transaction Documents.

      Section 7.5. Secured Parties' Fees and Expense; Indemnification.

            (a) Grantor agrees to pay upon demand to the Secured Parties the
      amount of any and all reasonable expenses, including all reasonable fees,
      disbursements and other charges of its counsel and of any experts or
      agents, which the Secured Parties may incur in connection with (i) the
      administration of this Agreement (including the customary fees and charges
      of the Secured Parties for any audits conducted by them or on their behalf
      with respect to the accounts inventory), (ii) the custody or preservation
      of, or the sale of, collection from or other realization upon any of the
      Collateral, (iii) the exercise, enforcement or protection of any of the
      rights of the Secured Parties hereunder or (iv) the failure of Grantor to
      perform or observe any of the provisions hereof.

            (b) Grantor agrees to indemnify the Secured Parties and the agent,
      contractors and employees of the Secured Parties (collectively, the
      "Indemnitees") against, and hold each of them harmless from, any and all
      losses, claims, damages, liabilities and related expenses, including
      reasonable fees, disbursements and other charges of counsel, incurred by
      or asserted against any of them arising out of, in any way connected with,
      or as a result of, the execution, delivery, or performance of this
      Agreement or any agreement or instrument contemplated hereby or any claim,
      litigation, investigation or proceeding relating hereto or to the
      Collateral, whether or not any Indemnitee is a party thereto; provided
      that such indemnity shall not, as to any Indemnitee, be available to the
      extent that such losses, claims, damages, liabilities or related expenses
      are determined by a court of competent jurisdiction by final and
      nonappealable judgment to have resulted from the gross negligence or
      willful misconduct of such Indemnitee.

            (c) Any such amounts payable as provided hereunder shall be
      additional Obligations secured hereby. The provisions of this Section
      shall remain operative and in full force and effect regardless of the
      termination of this Agreement, the Purchase Agreement, the Notes or the
      other Transaction Documents, the consummation of the transactions
      contemplated hereby, the repayment of any of the Obligations, the
      invalidity or unenforceability of any term or provision of this Agreement,
      the Purchase Agreement, the Notes or the other Transaction Documents, or
      any investigation made by or on behalf of the Secured Parties. All amounts
      due under this Section shall be payable on written demand therefor.

      Section 7.6. GOVERNING LAW. THIS AGREEMENT 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 AGREEMENT
SHALL NOT BE INTERPRETED OR CONSTRUED WITH ANY PRESUMPTION AGAINST THE PARTY
CAUSING THIS AGREEMENT TO BE DRAFTED.

                                       11
<PAGE>

      Section 7.7. Waivers; Amendment.

            (a) No failure or delay of the Secured Parties in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Secured Parties hereunder and under the Purchase Agreement
are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provisions of this Agreement, the Purchase
Agreement, the Notes or the other Transaction Documents or consent to any
departure by Grantor therefrom shall in any event be effective unless the same
shall be permitted by paragraph (b) below, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
No notice to or demand on Grantor in any case shall entitle Grantor to any other
or further notice or demand in similar or other circumstances.

            (b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements, in writing
entered into by the Secured Parties and Grantor.

      Section 7.8. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT, THE PURCHASE AGREEMENT OR THE NOTES. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT, THE PURCHASE AGREEMENT AND THE NOTES, AS APPLICABLE, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

      Section 7.9. Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired thereby
(it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

      Section 7.10. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one contract. Each party shall be entitled
to rely on a facsimile signature of any other party hereunder as if it were an
original.

                                       12
<PAGE>

      Section 7.11. Jurisdiction; Consent to Service of Process.

            (a) Grantor hereby irrevocably and unconditionally submits, for
      itself and its property, to the nonexclusive jurisdiction of any New York
      State court or Federal court of the United States of America sitting in
      New York City, and any appellate court from any thereof, in any action or
      proceeding arising out of or relating to this Agreement, the Purchase
      Agreement or the Notes, or for recognition or enforcement of any judgment,
      and each of the parties hereto hereby irrevocably and unconditionally
      agrees that all claims in respect of any such action or proceeding may be
      heard and determined in such New York State or, to the extent permitted by
      law, in such Federal court. Each of the parties hereto agrees that a final
      judgment in any such action or proceeding shall be conclusive and may be
      enforced in other jurisdictions by suit on the judgment or in any other
      manner provided by law. Nothing in this Agreement shall affect any right
      that the Secured Parties may otherwise have to bring any action or
      proceeding relating to this Agreement, the Purchase Agreement, the Notes
      or the other Transaction Documents against Grantor or its properties in
      the courts of any jurisdiction.

            (b) Grantor hereby irrevocably and unconditionally waives, to the
      fullest extent it may legally and effectively do so, any objection which
      it may now or hereafter have to the laying of venue of any suit, action or
      proceeding arising out of or relating to this Agreement, the Purchase
      Agreement, the Notes or the other Transaction Documents in any New York
      State or Federal court. Each of the parties hereto hereby irrevocably
      waives, to the fullest extent permitted by law, the defense of an
      inconvenient forum to the maintenance of such action or proceeding in any
      such court.

            (c) Each party to this Agreement irrevocably consents to service of
      process in the manner provided for notices in Section 7.1. Nothing in this
      Agreement will affect the right of any party to this Agreement to process
      in any other manner permitted by law.

      Section 7.12. Termination. This Agreement and the Security Interest shall
terminate when all the Obligations have been paid in full, at which time the
Secured Parties shall execute and deliver to Grantor, at Grantor's expense, all
Uniform Commercial Code termination statements and similar documents which
Grantor shall reasonably request to evidence such termination. Any execution and
delivery of termination statements or documents pursuant to this Section shall
be without recourse to or warranty by the Secured Parties.

      Section 7.13. Prejudgment Remedy Waiver. Grantor acknowledges that this
Agreement, the Purchase Agreement, the Notes and the other Transaction Documents
evidence a commercial transaction and that it could, under certain circumstances
have the right, to notice of and hearing on the right of the Secured Parties to
obtain a prejudgment remedy, such as attachment, garnishment and/or replevin,
upon commencing any litigation against Grantor. Notwithstanding, Grantor hereby
waives all rights to notice, judicial hearing or prior court order to which it
might otherwise have the right under any state or federal statute or
constitution in connection with the obtaining by the Secured Parties of any
prejudgment remedy by reason of this Agreement, the Purchase Agreement, the
Notes, the other Transaction Documents or by reason of the Obligations or any
renewals or extensions of the same. Grantor also waives any and all objection
which it might otherwise assert, now or in the future, to the exercise or use by
the Secured Parties of any right of setoff, repossession or self help as may
presently exist under statute or common law.

                                       13
<PAGE>

      Section 7.14. Collateral Agent.

            (a) Each Secured Party hereby appoints Bush Ross, P.A. (the
"Collateral Agent") as the Collateral Agent hereunder and each Secured Party
authorizes the Collateral Agent to take such action as agent on its behalf and
to exercise such powers under this Agreement and the other Transaction Documents
as are delegated to the Collateral Agent under such agreements and to exercise
such powers as are reasonably incidental thereto. Without limiting the
foregoing, each Secured Party hereby authorizes the Collateral Agent to execute
and deliver, and to perform its obligations under, each of the documents to
which the Collateral Agent is a party relating to security for the obligations
under the Notes, to exercise all rights, powers and remedies that the Collateral
Agent may have under such Transaction Documents and, in the case of the
Transaction Documents, to act as agent for the Secured Parties under such
Transaction Documents.

            (b) As to any matters not expressly provided for by this Agreement
and the other document relating thereto (including enforcement or collection),
the Collateral Agent shall not be required to exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Secured Parties, and such instructions shall be binding upon all Secured
Parties; provided, however, that the Collateral Agent shall not be required to
take any action that (i) the Collateral Agent in good faith believes exposes it
to personal liability unless the Collateral Agent receives an indemnification
satisfactory to it from the Secured Parties with respect to such action or (ii)
is contrary to this Agreement or applicable law. The Collateral Agent agrees to
give to each Secured Party prompt notice of each notice given to it by the
Company pursuant to the terms of this Agreement or the other Transaction
Documents. If the Collateral Agent receives conflicting instructions from the
Secured Parties it will not be required to act until it receives instructions
from the Secured Parties holding a majority of the Notes (calculated in dollar
amounts rather than noteholders).

            (c) In performing its functions and duties hereunder and under the
Transaction Documents and the other documents required to be executed or
delivered in connection therewith, the Collateral Agent is acting solely on
behalf of the Secured Parties and its duties are entirely administrative in
nature. The Collateral Agent does not assume and shall not be deemed to have
assumed any obligation other than as expressly set forth herein, in the
Transaction Documents and any other documents required to be executed or
delivered in connection therewith related hereto or any other relationship as
the agent, fiduciary or trustee of or for any Secured Party or holder of any
other obligation under this Agreement or the Notes. The Collateral Agent may
perform any of its duties under any Transaction Document by or through its
agents or employees.

            (d) None of the Collateral Agent, any of its affiliates or any of
their respective directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it, him, her or them under or in
connection with this Agreement or the other Transaction Documents, except for
its, his, her or their own gross negligence or willful misconduct.

                                       14
<PAGE>

            (e) Each Secured Party acknowledges that it shall, independently and
without reliance upon the Collateral Agent or any other Secured Party conduct
its own independent investigation of the financial condition and affairs of the
Company and its Subsidiaries in connection with the issuance of the Securities.
Each Secured Party also acknowledges that it shall, independently and without
reliance upon the Collateral Agent or any other Secured Party and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this
Agreement and other Transaction Documents. For avoidance of doubt, each Secured
Party represents that it has had no contact with the Collateral Agent; that the
Collateral Agent has had no role in the negotiation or preparation of the
Transaction Documents and was contacted after such negotiations and documents
were finalized for the purpose of serving solely in the administrative role of
Collateral Agent under this Agreement.

            (f) Each Secured Party agrees to indemnify the Collateral Agent and
each of its affiliates, and each of their respective directors, officers,
employees, agents and advisors (to the extent not reimbursed by the Borrower),
from any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses and disbursements (including fees, expenses
and disbursements of financial and legal advisors) of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against, the
Collateral Agent or any of its affiliates, directors, officers, employees,
agents and advisors in any way relating to or arising out of this Agreement or
the other Transaction Documents or any action taken or omitted by the Collateral
Agent under this Agreement or the document related thereto; provided, however,
that no Secured Party shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the Collateral Agent's or such
Affiliate's gross negligence or willful misconduct.

            (g) The Collateral Agent may resign at any time by giving written
notice thereof to the Secured Parties and the Company. Upon any such
resignation, the Secured Parties shall have the right to appoint a successor
Collateral Agent. If no successor Collateral Agent shall have been so appointed
by the Secured Parties, and shall have accepted such appointment, within 30 days
after the retiring Collateral Agent's giving of notice of resignation, then the
retiring Collateral Agent may, on behalf of the Secured Parties, appoint a
successor Collateral Agent, selected from among the Secured Parties. Upon the
acceptance of any appointment as Collateral Agent by a successor Collateral
Agent, such successor Collateral Agent shall succeed to, and become vested with,
all the rights, powers, privileges and duties of the retiring Collateral Agent,
and the retiring Collateral Agent shall be discharged from its duties and
obligations under this Agreement, the Transaction Documents and any other
documents required to be executed or delivered in connection therewith. Prior to
any retiring Collateral Agent's resignation hereunder as Collateral Agent, the
retiring Collateral Agent shall take such action as may be reasonably necessary
to assign to the successor Collateral Agent its rights as Collateral Agent under
the Transaction Documents. After such resignation, the retiring Collateral Agent
shall continue to have the benefit of this Agreement as to any actions taken or
omitted to be taken by it while it was Collateral Agent under this Agreement,
the Transaction Documents and any other documents required to be executed or
delivered in connection therewith.

                                       15
<PAGE>

            (h) Each Secured Party agrees that any action taken by the
Collateral Agent in accordance with the provisions of this Agreement or of the
other document relating thereto, and the exercise by the Collateral Agent or the
Secured Parties of the powers set forth herein or therein, together with such
other powers as are reasonably incidental thereto, shall be authorized and
binding upon all of the Secured Parties.

            (i) Each of the Secured Parties hereby directs, in accordance with
the terms hereof, the Collateral Agent to release (or in the case of clause (ii)
below, release or subordinate) any Lien held by the Collateral Agent for the
benefit of the Secured Parties against any of the following: (i) all of the
Collateral upon payment and satisfaction in full of all obligations under the
Notes and all other obligations under the Transaction Documents that the
Collateral Agent has been notified in writing are then due and payable; (ii) any
assets that are subject to a Lien permitted by Section 3.2); and (iii) any part
of the Collateral sold or disposed of by the Company or any Subsidiary if such
sale or disposition is permitted by this Agreement and the Notes (or permitted
pursuant to a waiver or consent of a transaction otherwise prohibited by this
Agreement and the Notes). Each of the Secured Parties hereby directs the
Collateral Agent to execute and deliver or file such termination and partial
release statements and do such other things as are necessary to release Liens to
be released pursuant to this Section 7.14 promptly upon the effectiveness of any
such release.

            (j) The contact information for the Collateral Agent is: Bush Ross,
P.A., 220 S. Franklin Street, Tampa, FL 33602, Attention: John Giordano. The fax
number for Bush Ross, P.A. is (813) 223-9620 and the E-mail address is
jgiordano@bushross.com. The telephone number for Bush Ross, P.A. is (813)
224-9255.

            (k) The Collateral Agent:

                  (i) shall not be responsible in any manner for the validity,
            correctness or sufficiency of any document or instrument received by
            or made available to it, in its capacity as Collateral Agent
            hereunder.

                  (ii) shall be entitled to act upon any written certificate,
            statement, notice, demand, request, consent, agreement or other
            instrument whatever, not only in reliance upon its due execution and
            the validity and effectiveness of its provisions, but also as to the
            accuracy and completeness of any information therein contained,
            which the Collateral Agent shall in good faith believe to be genuine
            and to have been signed or presented by any authorized person.

                  (iii) shall be entitled to request and receive from any party
            hereto such documents in addition to those provided for herein as
            the Collateral Agent may deem necessary to resolve any questions of
            fact involved in the administration of its duties hereunder.

                  (iv) may, at the expense of the remaining parties, consult
            independent counsel of its choice in respect to any question
            relating to its duties or responsibilities under this Agreement, and
            shall not be liable for any action taken or omitted in good faith on
            advice of such counsel.

                                       16
<PAGE>

                  (v) shall be under no obligation to advance any monetary sum
            in connection with the maintenance or administration of this
            Agreement, to institute or defend any action, suit or legal
            proceeding in connection herewith, or to take any other action
            likely to involve the Collateral Agent in expense, unless first
            indemnified by the remaining parties to the Collateral Agent's
            satisfaction.

                  (vi) shall not be bound by any amendment to this Agreement or
            by any other such amendment or agreement unless the same shall have
            been executed by the Collateral Agent.

                  (vii) shall have only such duties and responsibilities as are
            expressly set forth in this Agreement in the performance of its
            obligations hereunder.

                  (viii) shall be indemnified and held harmless by the remaining
            parties against any and all liabilities incurred by it hereunder
            (including all costs, expenses and fees incurred in defending any
            legal action or administrative proceeding or in resisting any
            claim), except for those resulting from its own willful misconduct
            or gross negligence.

                  (ix) may, if it becomes uncertain concerning its rights and
            responsibilities with respect to its duties or if it receives
            instructions with respect to the Collateral that it believes to be
            in conflict with this Agreement or is advised that a dispute has
            arisen with respect to its duties under this Agreement, without
            liability, refrain from taking any action until it is directed
            otherwise in a writing signed by all of the Secured Parties or by an
            order of a court of competent jurisdiction. The Collateral Agent is
            not obligated to institute or defend any legal proceedings, although
            it may, in its sole discretion and at the remaining parties'
            expense, institute or defend such proceedings (including proceedings
            seeking a declaratory judgment) and join interested parties.

                  (x) The Collateral Agent will be paid a fee of $3,000 for its
            agreement to serve as the Collateral Agent. This fee is payable upon
            the execution of this Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                       17
<PAGE>

      IN WITNESS WHEREOF, the parties have duly executed this Security Agreement
as of the day and year first written above.

                                            REMOTE DYNAMICS, INC.

                                            By:_________________________________
                                               Name:
                                               Title:

                                            SECURED PARTY:

                                            By:_________________________________
                                               Name:
                                               Title:

Acknowledged and agreed:

Collateral Agent:

By:_____________________
Name:
Title:

                                       18
<PAGE>

                                    EXHIBIT A
                                 Secured Parties

                                       19
<PAGE>

                                   SCHEDULE A
        State of Incorporation; Chief Executive Office; Filing Locations

State of Incorporation:
-----------------------
Delaware

Chief Executive Office:
-----------------------
1155 Kas Drive, Suite 100
Richardson, Texas 75081

Filing Locations:
-----------------
Secretary of State of the State of Delaware

                                       20
<PAGE>

                                  SCHEDULE 3.3
                                 Existing Liens

                                       21
<PAGE>

                                  SCHEDULE 3.4
                             Absence of Other Liens

                                       22
<PAGE>

                                  SCHEDULE 4.8
                                    Insurance

                                       23SHARE EXCHANGE AGREEMENT, dated as of November 30, 2006 (the "Agreement"),
between REMOTE DYNAMICS, INC., a Delaware corporation ("RDI") and BOUNCE MOBILE
SYSTEMS, INC, a Nevada corporation ("BMSI").

      WHEREAS BMSI is the owner of 500,000 shares (the "Bounce Shares") of
common stock, $.001 par value, of BounceGPS, Inc., a Nevada corporation
("Bounce"), constituting 100% of the issued and outstanding capital stock of
Bounce; and

      WHEREAS RDI desires to acquire the Bounce Shares in exchange for (a) an
aggregate of 5,000 authorized, but unissued, shares of Series C Preferred Stock
having such rights, preferences and privileges as set forth in the Series C
Preferred Stock Certificate of Designations included as Exhibit A hereto (the
"RDI Shares"), (b) a series B secured convertible promissory notesof RDI in the
principal amount of $660,000 in the form of Exhibit B hereto (the "Series B
Note"), (c) an original discount series B secured convertible promissory note of
RDI in the principal amount of $264,000 in the form of Exhibit C hereto (the
"OID Note"), (d) a Series E-7 Warrant of RDI, in the form of Exhibit D hereto
(the "Series E-7 Warrant" ), to purchase a number of shares of RDI common stock,
par value $.01 per share (the "Common Stock") equal to seventy-five percent
(75%) of the number of Conversion Shares (as defined below) issuable upon
conversion of the Series B Note on the date of issuance thereof, and (e) d) a
Series F-4 Warrant of RDI, in the form of Exhibit E hereto (the "Series F-4
Warrant" ), to purchase a number of shares of RDI Common Stock equal to
seventy-five percent (75%) of the number of Conversion Shares issuable upon
conversion of the Series B Note on the date of issuance thereof; and

      WHEREAS BMSI desires to exchange the Bounce Shares for the RDI Shares, the
Series B Note, the OID Note, the Series E-7 Warrant and the Series F-4 Warrant
(collectively, the "RDI Securities"); and

      NOW, THEREFORE, in consideration of the premises and mutual
representations, warranties and covenants herein contained, the parties hereby
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      Section 1.01 Definitions.

      (a) The following terms, as used herein, have the following meanings:

      "Closing Date" means the date that the Closing occurs in accordance with
Section 2.02.

      "Conversion Shares" mean any shares of Common Stock issuable upon
conversion of the Notes.

      "Environmental Laws" shall mean all applicable laws relating to the
protection of the environment including, without limitation, all requirements
pertaining to reporting, licensing, permitting, controlling, investigating or
remediating emissions, discharges, releases or threatened releases of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
materials or wastes, whether solid, liquid or gaseous in nature, into the air,
surface water, groundwater or land, or relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
hazardous substances, chemical substances, pollutants, contaminants or toxic
substances, material or wastes, whether solid, liquid or gaseous in nature.

<PAGE>

      "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset.

      "Note Purchase Agreement" means the Note and Warrant Purchase Agreement,
dated as of November 30, 2006, by and among RDI and the Purchasers listed on
Exhibit A thereto.

      "Notes" mean the Series B Note and the OID Note.

      "Person" means an individual, a corporation, a partnership, an
association, a trust or other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

      "Registration Rights Agreement" means the Registration Agreement between
RDI and BMSI , in the form of Exhibit F hereto, to be entered into at the
Closing.

      "Security Agreement" means the Security Agreement between RDI and BMSI ,
in the form of Exhibit G hereto, to be entered into at the Closing.

      "Subsidiary" means, with respect to any Person, any corporation or other
entity of which at least a majority of the securities or other ownership
interest having ordinary voting power (absolutely or contingently) for the
election of directors or other persons performing similar functions are at the
time owned directly or indirectly by such Person and/or any of its other
Subsidiaries.

      "Taxes" means all taxes, assessments and governmental charges imposed by
any federal, state, county, local or foreign government, taxing authority,
subdivision or agency thereof, including interest, penalties or additions
thereto.

      "Transaction Documents" mean, collectively, this Agreement, the Notes, the
Warrants, the Registration Rights Agreement and the Security Agreement.

      "Warrants" mean the Series E-7 Warrant and the Series F-4 Warrant.

      "Warrant Shares" mean any shares of Common Stock issuable upon exercise of
the Warrants.

                                        2
<PAGE>

      (b) Each of the following terms is defined in the Section set forth
opposite such term:

      Term                               Section
      ----                               -------
      Bounce                             Recitals
      Bounce Balance Sheet               4.08
      Bounce Balance Sheet Date          4.06
      Bounce Common Stock                4.02
      Bounce Permits                     4.12
      Bounce Shares                      Recitals
      Charter Amendment                  5.02(d)(xviii)
      Closing                            2.02
      Code                               Recitals
      Commission                         3.06
      Commission Documents               3.06
      Common Stock                       Recitals
      Damages                            7.02
      Exchange Act                       3.06
      Form 10-K                          3.06
      Form 10-Q                          3.06
      Governmental Entity                3.04
      IRS                                3.13
      Material Adverse Effect            3.01
      RDI                                Recitals
      RDI Balance Sheet                  3.08
      RDI Balance Sheet Date             3.07
      RDI Permits                        3.13
      RDI Shares                         Recitals
      RDI Securities                     Recitals
      Reverse Split                      5.02(d)(xviii)
      Securities Act                     2.02
      Share Increase                     5.02(d)(xviii)

                                        3
<PAGE>

                                    ARTICLE 2
                       ACQUISITION AND EXCHANGE OF SHARES

      Section 2.01 Exchange of Shares. Upon the terms and subject to the
conditions of this Agreement, RDI will acquire the Bounce Shares in exchange for
the RDI Securities at the Closing.

      Section 2.02 Closing. The closing (the "Closing") of the acquisition of
the Bounce Shares hereunder shall take place at the offices of BMSI in San Juan
Capistrano, California as soon as possible, but in no event later than three
business days, after the satisfaction of the conditions set forth in Article
VII, or at such other time or place as RDI and BMSI may agree. At the Closing,

            (a) RDI will file the Series C Certificate of Designations included
      as Exhibit A hereto with the Delaware Secretary of State.

            (b) RDI will deliver to BMSI (i) stock certificates representing the
      RDI Shares, (ii) the Notes and (iii) the Warrants..

            (c) RDI will execute and deliver to BMSI the Registration Rights
      Agreement and the Security Agreement.

            (c) BMSI will deliver to RDI stock certificates or other evidences
      representing all of the issued and outstanding shares of Bounce Capital
      Stock, duly endorsed, so as to make RDI the holder thereof, free and clear
      of all Liens.

All RDI Securities to be issued hereunder shall be deemed "restricted
securities" as defined in paragraph (a) of Rule 144 under the Securities Act of
1933, as amended (the "Securities Act"). All RDI Securities to be issued under
the terms of this Agreement shall be issued pursuant to an exemption from the
registration requirements of the Securities Act, under Section 4(2) of the
Securities Act and the rules and regulations promulgated thereunder.
Certificates representing the RDI Securities to be issued hereunder shall bear a
restrictive legend in substantially the following form:

            The securities represented by this certificate have not been
            registered under the Securities Act of 1933, as amended, and may not
            be offered for sale, sold, or otherwise disposed of, except in
            compliance with the registration provisions of such Act or pursuant
            to an exemption from such registration provisions, the availability
            of which is to be established to the satisfaction of the Company.

                                        4
<PAGE>

The legend set forth above shall be removed and RDI shall issue a certificate
without such legend to the holder of any RDI Securities (or securities acquired
upon conversion or exercise thereof) upon which it is stamped, if, unless
otherwise required by state securities laws, (i) the sale of such securities is
registered under the Securities Act (including registration pursuant to Rule 416
thereunder); (ii) such holder provides RDI with an opinion of counsel, in form,
substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such securities
may be made without registration under the Securities Act; or (iii) such holder
provides RDI with reasonable assurances that such securities can be sold under
Rule 144. In the event the above legend is removed from any RDI Securities and
thereafter the effectiveness of a registration statement covering such RDI
Securities is suspended or RDI determines that a supplement or amendment thereto
is required by applicable securities laws, then upon reasonable advance written
notice to the holder, RDI may require that the above legend be placed on any
such RDI Securities that cannot then be sold pursuant to an effective
registration statement or under Rule 144 and the holder shall cooperate in the
replacement of such legend. Such legend shall thereafter be removed when such
RDI Securities may again be sold pursuant to an effective registration statement
or under Rule 144.

                                   ARTICLE III
                      REPRESENTATIONS AND WARRANTIES OF RDI

      RDI hereby represents and warrants to BMSI that:

      Section 3.01 Organization. RDI is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted. RDI
is duly qualified or licensed and in good standing to do business in each
jurisdiction in which the property owned, leased or operated by it or the nature
of the business conducted by it makes such qualification or licensing necessary,
except in such jurisdictions where the failure to be so duly qualified or
licensed and in good standing would not in the aggregate have a material adverse
effect on the business, operations or financial condition (a "Material Adverse
Effect") of RDI and its Subsidiaries, taken as a whole. RDI has heretofore
delivered to BMSI accurate and complete copies of the Articles of Incorporation
and Bylaws, as currently in effect, of RDI.

      Section 3.02 Capitalization; Subsidiaries.

      (a) The authorized capital stock and the issued and outstanding shares of
capital stock of the RDI are set forth in Section 3.02 of RDI Disclosure
Schedule. All the issued and outstanding shares of capital stock of RDI are
validly issued, fully paid and nonassessable and free of preemptive rights.
Except as set forth in Section 3.02 of the RDI Disclosure Schedule, there are
not now, and at the Closing Date there will not be: (i) any shares of capital
stock (or securities substantially equivalent to capital stock) of RDI issued or
outstanding or any subscriptions, options, warrants, calls, rights, convertible
securities or other agreements or commitments of any character obligating the
RDI to issue, transfer or sell any of its securities, (ii) any outstanding
obligations of RDI or any Subsidiary to issue or deliver or to repurchase,
redeem or otherwise acquire any securities of RDI, or (iii) except for customary
transfer restrictions contained in agreements entered into by the Company in
order to sell restricted securities, any agreement or understanding that RDI is
a party to or bound by granting registration or anti-dilution rights to any
person with respect to any of its equity or debt securities or restricting the
voting or transfer of any shares of the capital stock of RDI.

                                        5
<PAGE>

      (b) Section 3.02 of the RDI Disclosure Schedule sets forth each Subsidiary
of REDI, showing the jurisdiction of its incorporation or organization and
showing the percentage of each person's ownership of the outstanding stock or
other interests of such Subsidiary. All of the outstanding shares of capital
stock of each Subsidiary of RDI have been duly authorized and validly issued,
and are fully paid and nonassessable. There are no outstanding preemptive,
conversion or other rights, options, warrants or agreements granted or issued by
or binding upon any Subsidiary for the purchase or acquisition of any shares of
capital stock of any Subsidiary or any other securities convertible into,
exchangeable for or evidencing the rights to subscribe for any shares of such
capital stock. Neither RDI nor any Subsidiary is subject to any obligation
(contingent or otherwise) to repurchase or otherwise acquire or retire any
shares of the capital stock of any Subsidiary or any convertible securities,
rights, warrants or options of the type described in the preceding sentence
except as set forth on Section 3.02 of the RDI Disclosure Schedule. Neither RDI
nor any Subsidiary is party to, nor has any knowledge of, any agreement
restricting the voting or transfer of any shares of the capital stock of any
Subsidiary.

      Section 3.03 Corporate Authorization. The execution, delivery and
performance by RDI of this Agreement and the other Transaction Documents and the
consummation by RDI of the transactions contemplated hereby and thereby are
within RDI's corporate powers and have been duly authorized by all necessary
corporate action of RDI. This Agreement has been duly and validly executed and
delivered by RDI and constitutes a valid and binding agreement of RDI,
enforceable against RDI in accordance with its terms. When executed and
delivered by RDI, each of the other Transaction Documents shall constitute a
valid and binding obligation of RDI enforceable against RDI in accordance with
its terms.

      Section 3.04 Governmental Authorization; Consents.

      (a) The execution, delivery and performance by RDI of this Agreement and
the other Transaction Documents require no action by or in respect of, or filing
with, any governmental body, agency, official or authority (a "Governmental
Entity").

      (b) No consent, approval, waiver or other action by an Person (other than
any Governmental Entity referred to in (a) above) under any contract, agreement,
indenture, lease, instrument, or other document to which RDI or any Subsidiary
is a party or by which any of them is bound is required or necessary for the
execution, delivery and performance of this Agreement or the other Transaction
Documents by RDI or the consummation of the transactions contemplated hereby or
thereby.

      Section 3.05 Non-Contravention. The execution, delivery and performance by
RDI of this Agreement and the other Transaction Documents do not and will not
(i) contravene or conflict with the certificate of incorporation or bylaws of
RDI, (ii) contravene or conflict with or constitute a violation of any provision
of any law, regulation, judgment, injunction, order or decree binding upon or
applicable to RDI or any Subsidiary; (iii) constitute a default under or give
rise to any right of termination, cancellation or acceleration of any right or
obligation of RDI or any Subsidiary or to a loss of any benefit to which RDI or
such Subsidiary is entitled under any provision of any agreement, contract, or
other instrument binding upon it or any license, franchise, permit or other
similar authorization held by RDI or any Subsidiary or (iv) result in the
creation or imposition of any Lien on any asset of RDI or any Subsidiary.

                                        6
<PAGE>

      Section 3.06 Commission Documents, Financial Statements. The Common Stock
of RDI is registered pursuant to Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and RDI has timely filed
all reports, schedules, forms, statements and other documents required to be
filed by it with the Securities and Exchange Commission (the "Commission")
pursuant to the reporting requirements of the Exchange Act (all of the foregoing
including filings incorporated by reference therein being referred to herein as
the "Commission Documents"). At the times of their respective filings, the Form
10-Q for the fiscal quarters ended November 30, 2005 and February 28, 2006 and
the Form 10-QSB for the fiscal quarter ended May 31, 2006 (collectively, the
"Form 10-Q") and the Form 10-K for the fiscal year ended August 31, 2005 (the
"Form 10-K") complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and the Form 10-Q and Form 10-K did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. As of their respective
dates, the financial statements of RDI included in the Commission Documents
complied as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the Commission. Such
financial statements have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis during the periods involved
(except (i) as may be otherwise indicated in such financial statements or the
notes thereto or (ii) in the case of unaudited interim statements, to the extent
they may not include footnotes or may be condensed or summary statements), and
fairly present in all material respects the financial position of RDI and its
Subsidiaries as of the dates thereof and the results of operations and cash
flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments).

      Section 3.07 Absence of Certain Changes. Since August 31, 2005 (the "RDI
Balance Sheet Date"), except as disclosed in the Commission Documents or on
Section 3.07 of the RDI Disclosure Schedule, RDI and each of its Subsidiaries
have conducted their businesses in the ordinary course consistent with past
practices and there has not been:

            (a) any material adverse change in the business, operations,
      properties, prospects or financial condition of RDI and its Subsidiaries,
      taken as a whole;

            (b) any declaration, setting aside or payment of any dividend or
      other distribution with respect to any shares of capital stock of RDI, or
      any repurchase, redemption or other acquisition by RDI or any Subsidiary
      of any outstanding shares of capital stock or other securities of, or
      other ownership interests in, RDI or any Subsidiary;

            (c) any amendment of any material terms of any outstanding security
      of RDI or any Subsidiary;

            (d) any incurrence, assumption or guarantee by RDI or any Subsidiary
      of any indebtedness for borrowed money;

                                        7
<PAGE>

            (e) any creation or assumption by RDI or any Subsidiary of any Lien
      on any material asset other than in the ordinary course of business
      consistent with past practices;

            (f) any making of any loan, advance or capital contributions to or
      investment in any Person;

            (g) any damage, destruction or other casualty loss (whether or not
      covered by insurance) affecting the business or assets of RDI or any
      Subsidiary which, individually or in the aggregate, would reasonable be
      expected to have a Material Adverse Effect of RDI and its Subsidiaries,
      taken as a whole;

            (h) any transaction or commitment made, or any contract or agreement
      entered into, by RDI or any Subsidiary relating to its assets or business
      (including the acquisition or disposition of any assets) or any
      relinquishment by RDI or any Subsidiary of any material contract or other
      right, other than transactions and commitments in the ordinary course
      consistent with past practices and those contemplated by this Agreement;

            (i) any change in any method of accounting or accounting practice by
      RDI or any Subsidiary, except for any such change after the date hereof
      required by reason of a concurrent change in generally accepted accounting
      principles; or

            (j) any (i) grant of any severance or termination pay to any
      officer, director or employee of RDI or any Subsidiary, (ii) entering into
      of any employment, deferred compensation or other similar agreement (or
      any amendment to any such existing agreement) with any director, officer
      or employee of RDI or any Subsidiary, (iii) increase in benefits payable
      under an existing severance or termination pay policies or employment
      agreements or (iv) increase in compensation, bonus or other benefits
      payable to directors, officers or employees of RDI or any Subsidiary.

      Section 3.08 No Undisclosed Liabilities. Except as and to the extent set
forth in Section 3.08 of the RDI Disclosure Schedule, there are no liabilities
of RDI or any Subsidiary of any kind whatsoever, whether accrued, contingent,
absolute, determined, determinable or otherwise, and there is no existing
condition, situation or set of circumstances which could reasonably be expected
to result in such a liability, other than:

            (a) Liabilities disclosed or provided for in the audited balance
      sheet of RDI as of August 31, 2005 (the "RDI Balance Sheet") included in
      the Form 10-K;

            (b) Liabilities disclosed in the Commission Documents;

            (c) Liabilities incurred in the ordinary course of business
      consistent with past practice since the RDI Balance Sheet Date, which in
      the aggregate are not material to RDI; and

            (d) Liabilities not required under generally accepted accounting
      principles to be shown on the RDI Balance Sheet for reasons other than the
      contingent nature thereof or the difficulty of determining the amount
      thereof.

                                        8
<PAGE>

      Section 3.09 Properties. RDI and its Subsidiaries have good and marketable
title to, or in the case of leased property has valid leasehold interests in,
all property and assets (whether real or personal, tangible or intangible)
reflected on the RDI Balance Sheet or acquired after the RDI Balance Sheet Date,
except for properties and assets sold since the RDI Balance Sheet Date in the
ordinary course of business consistent with past practices or as contemplated by
this Agreement. None of such properties or assets is subject to any Liens,
except:

            (a) Liens disclosed on the RDI Balance Sheet;

            (b) Liens for taxes not yet due or being contested in good faith
      (and for which adequate accruals or reserves have been established on the
      RDI Balance Sheet); or

            (c) Liens which do not materially detract from the value of such
      property or assets as now used.

      Section 3.10 Material Contracts.

      (a) Except for agreements, contracts, plans, leases, arrangements or
commitments set forth in Section 3.10 of the RDI Disclosure Schedule, neither
RDI nor any Subsidiary is a party to or subject to:

            (i) Any lease providing for annual rentals of $100,000 or more;

            (ii) Any contract for the purchase of materials, supplies, goods,
      services, equipment or other assets providing for annual payments by RDI
      or any Subsidiary of $100,000 or more;

            (iii) Any sales, distribution or other similar agreement providing
      for the sale by RDI or any Subsidiary of materials, supplies, goods,
      services, equipment or other assets that provides for annual payments to
      RDI or any Subsidiary of $100,000 or more;

            (iv) Any partnership, joint venture or other similar contract or
      arrangement;

            (v) Any contract relating to indebtedness for borrowed money or the
      deferred purchase price of property (whether incurred, assumed, guaranteed
      or secured by any asset), except contracts relating to indebtedness
      incurred in the ordinary course of business in an amount not exceeding
      $100,000;

            (vi) Any license agreement, franchise agreement or agreement in
      respect of similar rights granted to or held by RDI or any Subsidiary;

            (vii) Any agency, dealer, reseller, sales representative or similar
      agreement;

            (viii) Any contract or other document that substantially limits the
      freedom of RDI or any Subsidiary to compete in any line of business or
      with any Person or in any area or which would so limit the freedom of RDI
      or any Subsidiary after the Closing Date;

                                        9
<PAGE>

            (ix) Any other contract or commitment not made in the ordinary
      course of business that is material to RDI and its Subsidiaries, taken as
      a whole.

      (b) Each agreement, contract, plan, lease, arrangement and commitment
required to be disclosed on Section 3.10 of the RDI Disclosure Schedule is a
valid and binding agreement of RDI or a Subsidiary and is in full force and
effect, and neither RDI, any Subsidiary nor any other party thereto is in
default in any material respect under the terms of any such agreement, contract,
plan, lease, arrangement or commitment.

      Section 3.11 Litigation. Except as disclosed in Section 3.11 of the RDI
Disclosure Schedule, there is no action, suit, investigation, proceeding, review
pending against, or to the knowledge of RDI threatened against or affecting, RDI
or any Subsidiary or any of their properties before any court or arbitrator or
any Governmental Entity which, in the aggregate, are reasonably likely to have a
Material Adverse Effect of RDI and its Subsidiaries, taken as a whole, or
materially delay the transactions contemplated hereby.

      Section 3.12 Compliance with Laws; No Defaults.

      (a) RDI and its Subsidiaries holds all permits, licenses, variances,
exemptions, orders and approvals of all Governmental Entities necessary for the
lawful conduct of their businesses (the "RDI Permits"), except for failures to
hold such RDI Permits which would not, in the aggregate, reasonably be expected
to have a Material Adverse Effect of RDI and its Subsidiaries, taken as a whole.
RDI and its Subsidiaries are in compliance with the terms of the RDI Permits,
except where the failure so to comply would not reasonably be expected to have a
Material Adverse Effect of RDI and its Subsidiaries, taken as a whole. The
business of RDI and its Subsidiaries is not being conducted in violation of any
applicable law, ordinance, rule, regulation, decree or order of any Governmental
Entity, except for violations which in the aggregate do not and would not
reasonably be expected to have a Material Adverse Effect of RDI and its
Subsidiaries, taken as a whole.

      (b) Except as set forth in Section 3.12 of the RDI Disclosure Schedule,
neither RDI nor any Subsidiary is in default or violation (and no event has
occurred which with notice or the lapse of time or both would constitute a
default or violation) of any term, condition or provision of (i) any note, bond,
mortgage, indenture, license, contract, agreement or other instrument or
obligation to which RDI or any Subsidiary is a party or by which they or any
material amount of their properties or assets is bound or (iii) any order, writ,
injunction, decree, statute, rule or regulation applicable to RDI or any
Subsidiary, which defaults or violations would, in the aggregate, reasonable be
expected to have a Material Adverse Effect of RDI and its Subsidiaries, taken as
a whole, or which would materially delay the consummation of the transactions
contemplated hereby.

      Section 3.13 Taxes. Except as set forth in Section 3.13 of the RDI
Disclosure Schedule, RDI and each of its Subsidiaries has duly filed all
material federal, state, local and foreign tax returns required to be filed by
it, and RDI and each of its Subsidiaries has duly paid, caused to be paid or
made adequate provision for the payment of all Taxes required to be paid in
respect of the periods covered by such returns and has made adequate provision
for payment of all Taxes anticipated to be payable in respect of all calendar
periods since the periods covered by such returns. Except as set forth in
Section 3.13 of the RDI Disclosure Schedule, none of the federal income tax
returns of RDI or any Subsidiary have been examined or audited by the Internal
Revenue Service (the "IRS"). All deficiencies and assessments asserted as a
result of such examinations or other audits by federal, state, local or foreign
taxing authorities have been paid, fully settled or adequately provided for in
the financial statements of RDI, and no issue or claim has been asserted for
Taxes by any taxing authority for any prior period, the adverse determination of
which would result in a deficiency which would have a Material Adverse Effect of
RDI, other than those heretofore paid or provided for. Except as set forth in
Section 3.13 of the RDI Disclosure Schedule, there are no outstanding agreements
or waivers extending the statutory period of limitation applicable to any
federal or foreign income tax return of RDI or its subsidiaries.

                                       10
<PAGE>

      Section 3.14 Finders' Fees. There is no investment banker, broker, finder
or other intermediary which has been retained by or is authorized to act on
behalf of RDI who might be entitled to any fee or commission from BMSI, RDI or
any of their respective affiliates upon consummation of the transactions
contemplated by this Agreement and the other Transaction Documents.

      Section 3.15 Employees.

      (a) Neither RDI nor any Subsidiary has any collective bargaining
arrangements or agreements covering any of its employees, except as set forth on
Section 3.15 of the RDI Disclosure Schedule. Except as set forth on Section 3.15
of the RDI Disclosure Schedule, neither RDI nor any Subsidiary has any
employment contract, agreement regarding proprietary information,
non-competition agreement, non-solicitation agreement, confidentiality
agreement, or any other similar contract or restrictive covenant, relating to
the right of any officer, employee or consultant to be employed or engaged by
RDI or such Subsidiary required to be disclosed in the Commission Documents that
is not so disclosed. No officer, consultant or key employee of RDI or any
Subsidiary whose termination, either individually or in the aggregate, would be
reasonably likely to have a Material Adverse Effect of RDI and its Subsidiaries,
taken as a whole, has terminated or, to the knowledge of RDI, has any present
intention of terminating his or her employment or engagement with RDI or any
Subsidiary.

      (b) Neither RDI nor any Subsidiary has, or contributes to, any pension,
profit-sharing, option, other incentive plan, or any other type of Employee
Benefit Plan (as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA")), or has any obligation to or
customary arrangement with employees for bonuses, incentive compensation,
vacations, severance pay, sick pay, sick leave, insurance, service award,
relocation, disability, tuition refund, or other benefits, whether oral or
written, except as set forth in Section 3.15 of the RDI Disclosure Schedule. No
liability to the Pension Benefit Guaranty Corporation has been incurred with
respect to any Employee Benefit Plan by RDI or any of its Subsidiaries which is
or would be materially adverse to RDI and its Subsidiaries.

      Section 3.16 Operation of Business. Except as set forth in the Commission
Documents or on Section 3.16 of the RDI Disclosure Schedule, to the knowledge of
RDI, RDI and each of its Subsidiaries owns or possesses the rights to all
patents, trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and
intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations which are necessary for the conduct of
its business as now conducted without any conflict with the rights of others.

                                       11
<PAGE>

      Section 3.17 Environmental Compliance. Except as set forth in Section 3.17
of the RDI Disclosure Schedule, RDI and each of its Subsidiaries have obtained
all material approvals, authorization, certificates, consents, licenses, orders
and permits or other similar authorizations of all governmental authorities, or
from any other person, that are required under any Environmental Laws. To the
RDI's knowledge, RDI and each of its Subsidiaries have all necessary
governmental approvals required under all Environmental Laws as necessary for
RDI's business or the business of any of its Subsidiaries. Except for such
instances as would not individually or in the aggregate have a Material Adverse
Effect of RDI and its Subsidiaries, taken as a whole, and to the knowledge of
RDI, there are no past or present events, conditions, circumstances, incidents,
actions or omissions relating to or in any way affecting RDI or its Subsidiaries
that violate or may violate any Environmental Law after the Closing Date or that
may give rise to any environmental liability, or otherwise form the basis of any
claim, action, demand, suit, proceeding, hearing, study or investigation (i)
under any Environmental Law, or (ii) based on or related to the manufacture,
processing, distribution, use, treatment, storage (including without limitation
underground storage tanks), disposal, transport or handling, or the emission,
discharge, release or threatened release of any hazardous substance.

      Section 3.18 Insurance. Section 3.18 of the RDI Disclosure Schedule sets
forth a list of all insurance policies and fidelity bonds covering the assets,
business, equipment, properties, operations, employees, officers and directors
of RDI and its Subsidiaries. There is no claim by RDI or any Subsidiary pending
under any of such policies or bonds as to which coverage has been questioned,
denied or disputed by the underwriters of such policies or bonds. All premiums
payable under all such policies and bonds have been paid and RDI and its
Subsidiaries are otherwise in full compliance with the terms and conditions of
all such policies and bonds. Such policies of insurance and bonds (or other
policies and bonds providing substantially similar insurance coverage) have been
in effect since November 1, 2001 and remain in full force and effect. Such
policies of insurance and bonds are of the type and in amounts customarily
carried by Persons conducting businesses similar to those of RDI and its
Subsidiaries. RDI does not know of any threatened termination of, or premium
increase with respect to, any of such policies or bonds.

      Section 3.19 Books and Records; Internal Accounting Controls. The records
and documents of RDI and its Subsidiaries accurately reflect in all material
respects the information relating to the business of RDI and the Subsidiaries,
the location of their assets, and the nature of all transactions giving rise to
the obligations or accounts receivable of RDI or any Subsidiary. RDI and each of
its Subsidiaries maintain a system of internal accounting controls sufficient,
in the judgment of RDI's board of directors, to provide reasonable assurance
that (i) transactions are executed in accordance with management's general or
specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, (iii) access to
assets is permitted only in accordance with management's general or specific
authorization and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate actions are taken
with respect to any differences.

                                       12
<PAGE>

      Section 3.20 Transactions with Affiliates. Except as set forth on Section
3.20 of the RDI Schedule or in the Commission Documents, there are no loans,
leases, agreements, contracts, royalty agreements, management contracts or
arrangements or other continuing transactions between (a) RDI, any Subsidiary or
any of their respective customers or suppliers on the one hand, and (b) on the
other hand, any officer, employee, consultant or director of RDI, or any of its
Subsidiaries, or any person owning at least 5% of the outstanding capital stock
of RDI or any Subsidiary or any member of the immediate family of such officer,
employee, consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder which, in each case, is required to be disclosed in the
Commission Documents or in RDI's most recently filed definitive proxy statement
on Schedule 14A, that is not so disclosed in the Commission Documents or in such
proxy statement.

      Section 3.21 Questionable Payments. Neither RDI or any Subsidiary, nor any
director, officer, agent, employee, or other person associated with, or acting
on behalf of, RDI or any Subsidiary, nor any stockholder of RDI has, directly or
indirectly: used any corporate funds for unlawful contributions, gifts,
entertainment, or other unlawful expenses relating to political activity; made
any unlawful payment to foreign or domestic government officials or employees or
to foreign or domestic political parties or campaigns from corporate funds;
violated any provision of the Foreign Corrupt Practices Act of 1977, as amended;
or made any bribe, rebate, payoff, influence payment, kickback, or other
unlawful payment.

      Section 3.22 Sarbanes-Oxley Act. RDI is in compliance with the applicable
provisions of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), and the
rules and regulations promulgated thereunder, that are effective and presently
applicable to RDI and intends to comply with other applicable provisions of the
Sarbanes-Oxley Act, and the rules and regulations promulgated thereunder, upon
the effectiveness and applicability of such provisions with respect to RDI.

      Section 3.23 Validity of RDI Securities to be Issued.

      (a) The shares of RDI Shares to be issued at the Closing are validly
authorized and, when the such RDI Shares have been duly delivered pursuant to
the terms of this Agreement, such RDI Shares will be validly issued, fully paid,
and nonassessable and will not have been issued, owned or held in violation of
any preemptive or similar right of stockholder.

      (b) The Notes and the Warrants have been duly authorized by all necessary
corporate action and, when paid for or issued in accordance with the terms
hereof, the Notes shall be validly issued and outstanding, free and clear of all
liens, encumbrances and rights of refusal of any kind. When the Conversion
Shares and Warrant Shares are issued and paid for in accordance with the terms
of this Agreement and as set forth in the Notes and Warrants, such shares will
be duly authorized by all necessary corporate action and validly issued and
outstanding, fully paid and nonassessable, free and clear of all liens,
encumbrances and rights of refusal of any kind and the holders shall be entitled
to all rights accorded to a holder of Common Stock.

                                       13
<PAGE>

      Section 3.24 Completeness of Disclosure. No representation or warranty by
RDI in this Agreement contains or, and at the Closing Date will contain, an
untrue statement of material fact or omits or, at the Closing Date, will omit to
state a material fact required to be stated therein or necessary to make the
statements made not misleading.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF BMSI

         BMSI hereby represents and warrants to RDI that:

      Section 4.01 Organization. Bounce is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted.
Bounce is duly qualified or licensed and in good standing to do business in each
jurisdiction in which the property owned, leased or operated by it or the nature
of the business conducted by it makes such qualification or licensing necessary,
except in such jurisdictions where the failure to be so duly qualified or
licensed and in good standing would not in the aggregate have a Material Adverse
Effect of Bounce. BMSI has heretofore delivered to RDI accurate and complete
copies of the Articles of Incorporation and Bylaws, as currently in effect, of
Bounce.

      Section 4.02 Capitalization; Subsidiaries.

      (a) The authorized capital stock of the Bounce consists of (i) 20,000,000
shares of common stock, par value $.001 per share ("Bounce Common Stock"), of
which, as of the date hereof, 500,000 were issued and outstanding and (ii)
5,000,000 shares of preferred stock, par value $.001 each, of which no shares
are issued and outstanding.. All the issued and outstanding shares of Bounce
Common Stock are validly issued, fully paid and nonassessable and free of
preemptive rights. Except as set forth above, there are not now, and at the
Closing Date there will not be any shares of capital stock (or securities
substantially equivalent to capital stock) of Bounce issued or outstanding or
any subscriptions, options, warrants, calls, rights, convertible securities or
other agreements or commitments of any character obligating the Bounce to issue,
transfer or sell any of its securities.

      (b) Bounce does not own, directly or indirectly, any capital stock or
other equity securities of any corporation or have any direct or indirect equity
or ownership interest in any business.

      Section 4.03 Corporate Authorization. The execution, delivery and
performance by BMSI of this Agreement and the other Transaction Documents and
the consummation by BMSI of the transactions contemplated hereby and thereby are
within BMSI's corporate powers and have been duly authorized by all necessary
corporate action of BMSI. This Agreement has been duly and validly executed and
delivered by BMSI and constitutes a valid and binding agreement of BMSI,
enforceable against BMSI in accordance with its terms. When executed and
delivered by BMSI, each of the other Transaction Documents to which it is a
party shall constitute a valid and binding obligation of BMSI enforceable
against BMSI in accordance with its terms.

                                       14
<PAGE>

      Section 4.04 Governmental Authorization; Consents.

      (a) The execution, delivery and performance by BMSI of this Agreement and
the other Transaction Documents require no action by or in respect of, or filing
with, any Governmental Entity.

      (b) No consent, approval, waiver or other action by an Person (other than
any Governmental Entity referred to in (a) above) under any contract, agreement,
indenture, lease, instrument, or other document to which BMSI is a party or by
which either of them is bound is required or necessary for the execution,
delivery and performance of this Agreement or the other Transaction Documents by
BMSI or the consummation of the transactions contemplated hereby or thereby.

      Section 4.05 Non-Contravention. The execution, delivery and performance by
BMSI of this Agreement and the other Transaction Documents do not and will not
(i) contravene or conflict with the certificate of incorporation or bylaws of
BMSI, (ii) contravene or conflict with or constitute a violation of any
provision of any law, regulation, judgment, injunction, order or decree binding
upon or applicable to BMSI or Bounce; (iii) constitute a default under or give
rise to any right of termination, cancellation or acceleration of any right or
obligation of BMSI or Bounce or to a loss of any benefit to which BMSI or Bounce
is entitled under any provision of any agreement, contract, or other instrument
binding upon BMSI or Bounce or any license, franchise, permit or other similar
authorization held by BMSI or Bounce or (iv) result in the creation or
imposition of any Lien on any asset of BMSI or Bounce.

      Section 4.06 Financial Statements. The unaudited financial statements of
Bounce for the period ended October 31, 2006 (the "Bounce Balance Sheet Date")
previously delivered to RDI fairly present, in conformity with generally
accepted accounting principles applied on a consistent basis (except as
indicated in the notes thereto), the financial position of Bounce as of the date
thereof and its results of operations and cash flow for the period then ended
(subject to normal year-end adjustments).

      Section 4.07 Absence of Certain Changes. Except as set forth in Section
4.07 of the BMSI Disclosure Schedule, since the Bounce Balance Sheet Date,
Bounce has conducted its business in the ordinary course consistent with past
practices and there has not been:

            (a) any material adverse change in the business, operations or
      financial condition of Bounce;

            (b) any declaration, setting aside or payment of any dividend or
      other distribution with respect to any shares of capital stock of Bounce,
      or any repurchase, redemption or other acquisition by Bounce of any
      outstanding shares of capital stock or other securities of, or other
      ownership interests in, Bounce;

            (c) any amendment of any material terms of any outstanding security
      of Bounce;

                                       15
<PAGE>

            (d) any incurrence, assumption or guarantee by Bounce of any
      indebtedness for borrowed money;

            (e) any creation or assumption by Bounce of any Lien on any material
      asset other than in the ordinary course of business consistent with past
      practices;

            (f) any making of any loan, advance or capital contributions to or
      investment in any Person;

            (g) any damage, destruction or other casualty loss (whether or not
      covered by insurance) affecting the business or assets of Bounce which,
      individually or in the aggregate, would reasonable be expected to have a
      Material Adverse Effect of Bounce;

            (h) any transaction or commitment made, or any contract or agreement
      entered into, by Bounce relating to its assets or business (including the
      acquisition or disposition of any assets) or any relinquishment by Bounce
      of any material contract or other right, other than transactions and
      commitments in the ordinary course consistent with past practices and
      those contemplated by this Agreement;

            (i) any change in any method of accounting or accounting practice by
      Bounce, except for any such change after the date hereof required by
      reason of a concurrent change in generally accepted accounting principles;
      or

            (j) any (i) grant of any severance or termination pay to any
      officer, director or employee of Bounce, (ii) entering into of any
      employment, deferred compensation or other similar agreement (or any
      amendment to any such existing agreement) with any director, officer or
      employee of Bounce, (iii) increase in benefits payable under an existing
      severance or termination pay policies or employment agreements or (iv)
      increase in compensation, bonus or other benefits payable to directors,
      officers or employees of Bounce.

      Section 4.08 No Undisclosed Liabilities. Except as and to the extent set
forth in Section 4.08 of the BMSI Disclosure Schedule, there are no liabilities
of Bounce of any kind whatsoever, whether accrued, contingent, absolute,
determined, determinable or otherwise, and there is no existing condition,
situation or set of circumstances which could reasonably be expected to result
in such a liability, other than:

            (a) Liabilities disclosed or provided for in the unaudited balance
      sheet of Bounce as of September 30, 2006 (the "Bounce Balance Sheet")
      previously delivered to RDI;

            (b) Liabilities incurred in the ordinary course of business
      consistent with past practice since the Bounce Balance Sheet Date, which
      in the aggregate are not material to Bounce; and

            (c) Liabilities not required under generally accepted accounting
      principles to be shown on the Bounce Balance Sheet for reasons other than
      the contingent nature thereof or the difficulty of determining the amount
      thereof.

                                       16
<PAGE>

      Section 4.09 Properties. Bounce has good and marketable title to, or in
the case of leased property has valid leasehold interests in, all property and
assets (whether real or personal, tangible or intangible) reflected on the
Bounce Balance Sheet or acquired after the Bounce Balance Sheet Date, except for
properties and assets sold since the Bounce Balance Sheet Date in the ordinary
course of business consistent with past practices or as contemplated by this
Agreement. None of such properties or assets is subject to any Liens, except:

            (a) Liens disclosed on the Bounce Balance Sheet;

            (b) Liens for taxes not yet due or being contested in good faith
      (and for which adequate accruals or reserves have been established on the
      Bounce Balance Sheet); or

            (c) Liens which do not materially detract from the value of such
      property or assets as now used.

      Section 4.10 Material Contracts.

      (a) Except for agreements, contracts, plans, leases, arrangements or
commitments set forth in Section 4.10 of the BMSI Disclosure Schedule, Bounce is
not a party to or subject to:

            (i) Any lease providing for annual rentals of $5,000 or more;

            (ii) Any contract for the purchase of materials, supplies, goods,
      services, equipment or other assets providing for annual payments by
      Bounce of $10,000 or more;

            (iii) Any sales, distribution or other similar agreement providing
      for the sale by Bounce of materials, supplies, goods, services, equipment
      or other assets that provides for annual payments to Bounce of $10,000 or
      more;

            (iv) Any partnership, joint venture or other similar contract or
      arrangement;

            (v) Any contract relating to indebtedness for borrowed money or the
      deferred purchase price of property (whether incurred, assumed, guaranteed
      or secured by any asset), except contracts relating to indebtedness
      incurred in the ordinary course of business in an amount not exceeding
      $10,000;

            (vi) Any license agreement, franchise agreement or agreement in
      respect of similar rights granted to or held by Bounce;

            (vii) Any agency, dealer, reseller, sales representative or similar
      agreement;

            (viii) Any contract or other document that substantially limits the
      freedom of Bounce to compete in any line of business or with any Person or
      in any area or which would so limit the freedom of Bounce after the
      Closing Date;

            (ix) Any other contract or commitment not made in the ordinary
      course of business that is material to Bounce.

                                       17
<PAGE>

      (b) Each agreement, contract, plan, lease, arrangement and commitment
required to be disclosed on Section 4.10 of the BMSI Disclosure Schedule is a
valid and binding agreement of Bounce and is in full force and effect, and
neither Bounce nor any other party thereto is in default in any material respect
under the terms of any such agreement, contract, plan, lease, arrangement or
commitment.

      Section 4.11 Litigation. Except as disclosed in Section 4.11 of the BMSI
Disclosure Schedule, there is no action, suit, investigation, proceeding, review
pending against, or to the knowledge of BMSI threatened against or affecting,
Bounce or any of its properties before any court or arbitrator or any
Governmental Entity which, in the aggregate, are reasonably likely to have a
Material Adverse Effect of Bounce or materially delay the transactions
contemplated hereby.

      Section 4.12 Compliance with Laws; No Defaults.

      (a) Bounce holds all permits, licenses, variances, exemptions, orders and
approvals of all Governmental Entities necessary for the lawful conduct of its
businesses (the "Bounce Permits"), except for failures to hold such Bounce
Permits which would not, in the aggregate, reasonably be expected to have a
Material Adverse Effect of Bounce. Bounce is in compliance with the terms of the
Bounce Permits, except where the failure so to comply would not reasonably be
expected to have a Material Adverse Effect of Bounce. The business of Bounce is
not being conducted in violation of any applicable law, ordinance, rule,
regulation, decree or order of any Governmental Entity, except for violations
which in the aggregate do not and would not reasonably be expected to have a
Material Adverse Effect of Bounce.

      (b) Except as set forth in Section 4.12 of the BMSI Disclosure Schedule,
Bounce is not in default or violation (and no event has occurred which with
notice or the lapse of time or both would constitute a default or violation) of
any term, condition or provision of (i) any note, bond, mortgage, indenture,
license, contract, agreement or other instrument or obligation to which Bounce
is a party or by which it or any of their material amount of its properties or
assets is bound or (iii) any order, writ, injunction, decree, statute, rule or
regulation applicable to Bounce, which defaults or violations would, in the
aggregate, reasonable be expected to have a Material Adverse Effect of Bounce or
which would materially delay the consummation of the transactions contemplated
hereby.

      Section 4.13 Taxes. Except as set forth in Section 4.13 of the BMSI
Disclosure Schedule, Bounce has duly filed all material federal, state, local
and foreign tax returns required to be filed by it, and Bounce has duly paid,
caused to be paid or made adequate provision for the payment of all Taxes
required to be paid in respect of the periods covered by such returns and has
made adequate provision for payment of all Taxes anticipated to be payable in
respect of all calendar periods since the periods covered by such returns.
Except as set forth in Section 4.13 of the BMSI Disclosure Schedule, none of the
federal income tax returns of Bounce have been examined or audited by the IRS.
All deficiencies and assessments asserted as a result of any such examinations
or other audits by federal, state, local or foreign taxing authorities have been
paid, fully settled or adequately provided for in the financial statements of
Bounce, and no issue or claim has been asserted for Taxes by any taxing
authority for any prior period, the adverse determination of which would result
in a deficiency which would have a Material Adverse Effect of Bounce, other than
those heretofore paid or provided for. Except as set forth in Section 4.13 of
the BMSI Disclosure Schedule, there are no outstanding agreements or waivers
extending the statutory period of limitation applicable to any federal or
foreign income tax return of Bounce or its subsidiaries.

                                       18
<PAGE>

      Section 4.14 Finders' Fees. There is no investment banker, broker, finder
or other intermediary which has been retained by or is authorized to act on
behalf of BMSI or Bounce who might be entitled to any fee or commission from
Bounce, RDI or any of their respective affiliates upon consummation of the
transactions contemplated by this Agreement.

      Section 4.15 Employees. Bounce does not have any collective bargaining
arrangements or agreements covering any of its employees, except as set forth on
Section 4.15 of the BMSI Disclosure Schedule. Except as set forth on Section
4.15 of the BMSI Disclosure Schedule, Bounce does not have any employment
contract, agreement regarding proprietary information, non-competition
agreement, non-solicitation agreement, confidentiality agreement, or any other
similar contract or restrictive covenant, relating to the right of any officer,
employee or consultant to be employed or engaged by Bounce. No officer,
consultant or key employee of Bounce whose termination, either individually or
in the aggregate, would be reasonably likely to have a Material Adverse Effect
of Bounce, has terminated or, to the knowledge of BMSI, has any present
intention of terminating his or her employment or engagement with Bounce.

      (b) Bounce does not have, or contribute to, any pension, profit-sharing,
option, other incentive plan, or any other type of Employee Benefit Plan (as
defined in Section 3(3) of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA")), or have any obligation to or customary arrangement with
employees for bonuses, incentive compensation, vacations, severance pay, sick
pay, sick leave, insurance, service award, relocation, disability, tuition
refund, or other benefits, whether oral or written, except as set forth in
Section 4.15 of the BMSI Disclosure Schedule. No liability to the Pension
Benefit Guaranty Corporation has been incurred with respect to any Employee
Benefit Plan by Bounce which is or would be materially adverse to Bounce.

      Section 4.16 Operation of Business. Except as set forth on Section 4.16 of
the BMSI Disclosure Schedule, to the knowledge of BMSI, Bounce owns or possesses
the rights to all patents, trademarks, domain names (whether or not registered)
and any patentable improvements or copyrightable derivative works thereof,
websites and intellectual property rights relating thereto, service marks, trade
names, copyrights, licenses and authorizations which are necessary for the
conduct of its business as now conducted without any conflict with the rights of
others.

      Section 4.17 Environmental Compliance. Except as set forth in Section 4.17
of the BMSI Disclosure Schedule, Bounce has obtained all material approvals,
authorization, certificates, consents, licenses, orders and permits or other
similar authorizations of all governmental authorities, or from any other
person, that are required under any Environmental Laws. To the BMSI's knowledge,
Bounce has all necessary governmental approvals required under all Environmental
Laws as necessary for Bounce's business. Except for such instances as would not
individually or in the aggregate have a Material Adverse Effect of Bounce, and
to the knowledge of BMSI, there are no past or present events, conditions,
circumstances, incidents, actions or omissions relating to or in any way
affecting Bounce that violate or may violate any Environmental Law after the
Closing Date or that may give rise to any environmental liability, or otherwise
form the basis of any claim, action, demand, suit, proceeding, hearing, study or
investigation (i) under any Environmental Law, or (ii) based on or related to
the manufacture, processing, distribution, use, treatment, storage (including
without limitation underground storage tanks), disposal, transport or handling,
or the emission, discharge, release or threatened release of any hazardous
substance.

                                       19
<PAGE>

      Section 4.18 Insurance. Section 4.18 of the BMSI Disclosure Schedule sets
forth a list of all insurance policies and fidelity bonds covering the assets,
business, equipment, properties, operations, employees, officers and directors
of Bounce. There is no claim by Bounce pending under any of such policies or
bonds as to which coverage has been questioned, denied or disputed by the
underwriters of such policies or bonds. All premiums payable under all such
policies and bonds have been paid and Bounce is otherwise in full compliance
with the terms and conditions of all such policies and bonds. Such policies of
insurance and bonds (or other policies and bonds providing substantially similar
insurance coverage) have been in effect since August 1, 2006 and remain in full
force and effect. Such policies of insurance and bonds are of the type and in
amounts customarily carried by Persons conducting businesses similar to those of
Bounce. BMSI does not know of any threatened termination of, or premium increase
with respect to, any of such policies or bonds.

      Section 4.19 Books and Records; Internal Accounting Controls. The records
and documents of Bounce accurately reflect in all material respects the
information relating to the business of Bounce, the location of its assets, and
the nature of all transactions giving rise to the obligations or accounts
receivable of Bounce. Bounce maintains a system of internal accounting controls
sufficient, in the judgment of Bounce's board of directors, to provide
reasonable assurance that (i) transactions are executed in accordance with
management's general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management's general
or specific authorization and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
actions are taken with respect to any differences.

      Section 4.20 Transactions with Affiliates. Except as set forth on Section
4.20 of the BMSI Schedule, there are no loans, leases, agreements, contracts,
royalty agreements, management contracts or arrangements or other continuing
transactions between (a) Bounce or any of its respective customers or suppliers
on the one hand, and (b) on the other hand, any officer, employee, consultant or
director of Bounce, or any person owning at least 5% of the outstanding capital
stock of Bounce or any member of the immediate family of such officer, employee,
consultant, director or stockholder or any corporation or other entity
controlled by such officer, employee, consultant, director or stockholder, or a
member of the immediate family of such officer, employee, consultant, director
or stockholder.

      Section 4.21 Questionable Payments. Neither Bounce, nor any director,
officer, agent, employee, or other person associated with, or acting on behalf
of, Bounce, nor any stockholder of Bounce has, directly or indirectly: used any
corporate funds for unlawful contributions, gifts, entertainment, or other
unlawful expenses relating to political activity; made any unlawful payment to
foreign or domestic government officials or employees or to foreign or domestic
political parties or campaigns from corporate funds; violated any provision of
the Foreign Corrupt Practices Act of 1977, as amended; or made any bribe,
rebate, payoff, influence payment, kickback, or other unlawful payment.

                                       20
<PAGE>

      Section 4,22 Ownership of Shares. BMSI owns beneficially all of the Bounce
Shares. BMSI has full power and authority to transfer the Bounce Shares to RDI
under, pursuant to, and in accordance with, this Agreement, and such shares are
free and clear of any Liens and such shares are not subject to any claims as to
the ownership thereof, or any rights, powers or interest therein, by any third
party and are not subject to any preemptive or similar rights of stockholders.

      Section 4.23 Investment Representations and Covenants.

            (i) BMSI represents that it is acquiring the RDI Securities for its
own account and for investment only and not with a view to distribution or
resale thereof within the meaning of such phrase as defined under the Securities
Act. BMSI shall not dispose of any part or all of such RDI Securities in
violation of the provisions of the Securities Act and the rules and regulations
promulgated under the Securities Act by the Securities and Exchange Commission
and all applicable provisions of state securities laws and regulations.

            (ii) The certificate or certificates representing the shares of RDI
Securities shall bear a legend in substantially the form set forth in Section
2.02 hereof.

            (iii) BMSI acknowledges being informed that the RDI Securites shall
be unregistered, shall be "restricted securities" as defined in paragraph (a) of
Rule 144 under the Securities Act, and must be held indefinitely unless (a) they
are subsequently registered under the Securities Act, or (b) an exemption from
such registration is available.

            (iv) BMSI acknowledges that it has been afforded access to all
material information which they have requested relevant to their decision to
acquire the RDI Securities and to ask questions of RDI's management and that,
except as set forth herein, neither RDI nor anyone acting on behalf of RDI has
made any representations or warranties to the BMSI which have induced,
persuaded, or stimulated the BMSI to acquire such RDI Securities.

            (v) Either alone, or together with its investment advisor(s), BMSI
has the knowledge and experience in financial and business matters to be capable
of evaluating the merits and risks of the prospective investment in the RDI
Securities, and BMSI is and will be able to bear the economic risk of the
investment in such RDI Securities.

      Section 4.24 Completeness of Disclosure. No representation or warranty by
BMSI in this Agreement contains or, and at the Closing Date will contain, an
untrue statement of material fact or omits or, at the Closing Date, will omit to
state a material fact required to be stated therein or necessary to make the
statements made not misleading.

                                       21
<PAGE>

                                    ARTICLE V
                                    COVENANTS

      Section 5.01 Covenants of RDI. RDI agrees that:

      (a) Conduct of RDI. During the period from the date of this Agreement and
continuing until the Closing Date, RDI shall conduct its business in the
ordinary course consistent with past practices and to use its best efforts to
preserve intact its business organizations and relationships with third parties
and to keep available the services of its present officers and employees.
Without limiting the generality of the foregoing, from the date hereof until the
Closing Date, RDI will not:

            (i) Adopt or propose any change in its certificate of incorporation
      or bylaws;

            (ii) Merge or consolidate with any other Person or acquire a
      material amount of assets of any other Person;

            (iii) Pay, discharge or satisfy any claims, liabilities or
      obligations (absolute, accrued, asserted or unasserted, contingent or
      otherwise), other than the payment, discharge or satisfaction in the
      ordinary course of business consistent with past practice or in accordance
      with their terms, of liabilities reflected or reserved against in, or
      contemplated by, the RDI Balance Sheet (or the notes thereto) or incurred
      in the ordinary course of business consistent with past practice;

            (iv) Except as expressly permitted by this Agreement, sell, lease,
      license or otherwise dispose of any material assets or properties except
      (A) pursuant to existing contracts or commitments and (B) in the ordinary
      course of business consistent with past practice; or

            (v) Agree or commit to do any of the foregoing.

RDI will not (i) take or agree or commit to take any action that would make any
representation and warranty of RDI inaccurate in any respect at, or as of any
time prior to, the Closing Date, (ii) omit or agree or commit to omit to take
any action necessary to prevent any such representation or warranty from being
inaccurate in any respect at any such time, or (iii) make any agreement or reach
any understanding not approved in writing by RDI as a condition for obtaining
any consent, authorization, approval, order, license, certificate, or permit
required for the consummation of the transactions contemplated by this
Agreement.

      (b) Access to Information. Upon reasonable notice and subject to
restrictions contained in confidentiality agreements to which such party is
subject (from which such party shall use reasonable efforts to be released), RDI
shall afford to the officers, employees, accountants, counsel and other
representatives of BMSI, access, during normal business hours during the period
prior to the Closing, to all of RDI's properties, books, contracts, commitments
and records and, during such period, RDI shall furnish promptly to the other all
information concerning RDI's business, properties and personnel as BMSI may
reasonably request.

                                       22
<PAGE>

      (c) Confidentiality. Prior to the Closing Date and after any termination
of this Agreement, RDI and its affiliates will hold, an will use best efforts to
cause their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to hold, in confidence, unless compelled to
disclose by judicial or administrative process or by other requirements of law,
all confidential documents and information concerning BMSI and Bounce furnished
to RDI or its affiliates in connection with the transaction contemplated by this
Agreement, except to the extent that such information can be shown to have been
(i) previously known on a nonconfidential basis by RDI, (ii) in the public
domain through no fault of RDI or (iii) later lawfully acquired by RDI from
sources other than BMSI or Bounce; provided that RDI may disclose such
information to its officers, directors, employees, accountants, counsel,
consultants, advisors and agents in connection with the transactions
contemplated by this Agreement and to its lenders in connection with obtaining
the financing for the transactions contemplated by this Agreement so long as
such Persons are informed by RDI of the confidential nature of such information
and are directed by RDI to treat such information confidentially. The obligation
of RDI and its affiliates to hold such information in confidence shall be
satisfied if they exercise the same care with respect to such information as
they would take to preserve the confidentiality of their own similar
information. If this Agreement is terminated, RDI and its affiliates will, and
will use best efforts to cause their respective officers, directors, employees,
accountants, counsel, consultants, advisors and agents to, destroy or deliver to
BMSI, upon request, all documents and other materials, and all copies thereof,
obtained by RDI and its affiliates or on their behalf from BMSI or Bounce in
connection with this Agreement that are subject to such confidence.

      (d) Additional Covenants of RDI.

      (i) Board Composition. Effective at the Closing, the Board of Directors of
RDI shall take all required corporate action to cause the Board of Directors of
RDI to consist of David Walter, Keith Moore, Marshall Saffer and Dennis Ackerman
(the "New RDI Board"). Within 30 days following the Closing, the Board of
Directors of RDI shall take all required corporate action to increase the size
of the Board of Directors to five members and to appoint an individual
designated by BMSI to fill the resulting vacancy.

      (ii) Securities Compliance. RDI shall notify the Commission in accordance
with its rules and regulations, of the transactions contemplated by any of the
Transaction Documents and shall take all other necessary action and proceedings
as may be required and permitted by applicable law, rule and regulation, for the
legal and valid issuance of the RDI Securities to BMSI.

      (iii) Registration and Listing. RDI shall cause its Common Stock to
continue to be registered under Sections 12(b) or 12(g) of the Exchange Act, to
comply in all respects with its reporting and filing obligations under the
Exchange Act, to comply with all requirements related to any registration
statement filed pursuant to this Agreement, and to not take any action or file
any document (whether or not permitted by the Securities Act or the rules
promulgated thereunder) to terminate or suspend such registration or to
terminate or suspend its reporting and filing obligations under the Exchange Act
or Securities Act, except as permitted herein. RDI will take all action
necessary to continue the listing or trading of its Common Stock on the OTC
Bulletin Board or other exchange or market on which the Common Stock is trading.
Subject to the terms of the Transaction Documents, RDI further covenants that it
will take such further action as BMSI may reasonably request, all to the extent
required from time to time to enable BMSI to sell the RDI Securities without
registration under the Securities Act within the limitation of the exemptions
provided by Rule 144 promulgated under the Securities Act. Upon the request of
BMSI, RDI shall deliver to BMSI a written certification of a duly authorized
officer as to whether it has complied with the issuer requirements of Rule 144.

                                       23
<PAGE>

      (iv) Inspection Rights. Provided the same would not be in violation of
Regulation FD, RDI shall permit, during normal business hours and upon
reasonable request and reasonable notice, BMSI or any employees, agents or
representatives thereof, so long as BMSI shall beneficially own any Conversion
Shares or Warrant Shares, for purposes reasonably related to BMSI's interests as
a stockholder, to examine the publicly available, non-confidential records and
books of account of, and visit and inspect the properties, assets, operations
and business of RDI and any Subsidiary, and to discuss the publicly available,
non-confidential affairs, finances and accounts of RDI and any Subsidiary with
any of its officers, consultants, directors and key employees.

      (vi) Compliance with Laws. RDI shall comply, and cause each of its
Subsidiaries to comply, with all applicable laws, rules, regulations and orders,
noncompliance with which would be reasonably likely to have a Material Adverse
Effect of RDI and its Subsidiaries, taken as a whole.

      (vii) Keeping of Records and Books of Account. RDI shall keep and cause
each of its Subsidiaries to keep adequate records and books of account, in which
complete entries will be made in accordance with generally accepted accounting
principles consistently applied, reflecting all financial transactions of RDI
and its Subsidiaries, and in which, for each fiscal year, all proper reserves
for depreciation, depletion, obsolescence, amortization, taxes, bad debts and
other purposes in connection with its business shall be made.

      (viii) Reporting Requirements. If RDI ceases to file its periodic reports
with the Commission, or if the Commission ceases making these periodic reports
available via the Internet without charge, then RDI shall furnish the following
(or if RDI has ceased to file periodic reports, substantially equivalent
information) to BMSI so long as BMSI shall beneficially own RDI Securities:

            (A) Quarterly Reports filed with the Commission on Form 10-Q as soon
      as practical after the document is filed with the Commission, and in any
      event within five (5) days after the document is filed with the
      Commission;

            (B) Annual Reports filed with the Commission on Form 10-K as soon as
      practical after the document is filed with the Commission, and in any
      event within five (5) days after the document is filed with the
      Commission; and

                                       24
<PAGE>

            (C) Copies of all notices, information and proxy statements in
      connection with any meetings, that are, in each case, provided to holders
      of shares of Common Stock, contemporaneously with the delivery of such
      notices or information to such holders of Common Stock.

      (ix) Other Agreements. RDI shall not enter into any agreement in which the
terms of such agreement would restrict or impair the right or ability to perform
of RDI or any Subsidiary under any Transaction Document.

      (x) Distributions. So long as any RDI Securities remain outstanding, RDI
agrees that it shall not (A) declare or pay any dividends or make any
distributions to any holder(s) of Common Stock or (B) purchase or otherwise
acquire for value, directly or indirectly, any Common Stock or other equity
security of RDI.

      (xi) Pledge of Securities. RDI acknowledges that the RDI Securities may be
pledged by BMSI in connection with a bona fide margin agreement or other loan or
financing arrangement that is secured by the RDI Securities. The pledge of RDI
Securities shall not be deemed to be a transfer, sale or assignment of the RDI
Securities hereunder, and BMSI shall not be required to provide RDI with any
notice thereof or otherwise make any delivery to RDI pursuant to this Agreement
or any other Transaction Document; provided that BMSI and its pledgee shall be
required to comply with the provisions of Section 2.02 hereof in order to effect
a sale, transfer or assignment of RDI Securities to such pledgee. At BMSI's
expense, RDI hereby agrees to execute and deliver such documentation as a
pledgee of the RDI Securities may reasonably request in connection with a pledge
of the RDI Securities to such pledgee by BMSI.

      (xii) Amendments. RDI shall not amend or waive any provision of its
Articles of Incorporation or Bylaws in any way that would adversely affect
exercise rights, voting rights, conversion rights, prepayment rights or
redemption rights of any holder of the Notes.

      (xiii) Distributions. So long as any RDI Securities remain outstanding,
RDI agrees that it shall not (A) declare or pay any dividends or make any
distributions to any holder(s) of Common Stock or (B) purchase or otherwise
acquire for value, directly or indirectly, any Common Stock or other equity
security of RDI.

      (xiv) Reservation of Shares. So long as any of RDI Securities remain
outstanding, RDI shall take all action necessary to at all times have
authorized, and reserved for the purpose of issuance, no less than a number of
shares of Common Stock equal to the number of authorized shares of Common Stock
that are not currently issued or reserved for issuance as of the date hereof;
provided, however, upon RDI filing the Charter Amendment, RDI 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 fifty
percent (150%) of the number of shares of Common Stock as shall from time to
time be sufficient to provide for the issuance of the Conversion Shares and the
Warrant Shares.

                                       25
<PAGE>

      (xv) Transfer Agent Instructions. RDI shall issue irrevocable instructions
to its transfer agent, and any subsequent transfer agent, to issue certificates,
registered in the name of BMSI or its respective nominee(s), for the Conversion
Shares and the Warrant Shares in such amounts as specified from time to time by
BMSI to RDI upon conversion of the Notes or exercise of the Warrants in the form
of Exhibit H attached hereto (the "Irrevocable Transfer Agent Instructions").
Prior to registration of the Conversion Shares and the Warrant Shares under the
Securities Act, all such certificates shall bear the restrictive legend
specified in Section 2.02 of this Agreement. RDI warrants that no instruction
other than the Irrevocable Transfer Agent Instructions referred to in this
Section 5.01(d)(xv) will be given by RDI to its transfer agent and that the
Conversion Shares and Warrant Shares shall otherwise be freely transferable on
the books and records of RDI as and to the extent provided in this Agreement and
the Registration Rights Agreement. Nothing in this Section 5.01(d)(xv) shall
affect in any way BMSI's obligation to comply with all applicable prospectus
delivery requirements, if any, upon resale of the Conversion Shares and the
Warrant Shares. If BMSI provides RDI with an opinion of counsel, in a reasonably
acceptable form, to the effect that a public sale, assignment or transfer of the
Conversion Shares or Warrant Shares may be made without registration under the
Securities Act or BMSI provides RDI with reasonable assurances that the
Conversion Shares or Warrant Shares can be sold pursuant to Rule 144 without the
restriction as to the number of securities acquired as of a particular date that
can be immediately sold, RDI shall permit the transfer, and, in the case of the
Conversion Shares and the Warrant Shares, promptly instruct its transfer agent
to issue one or more certificates in such name and in such denominations as
specified by BMSI and without any restrictive legend. BMSI acknowledges that a
breach by it of its obligations under this Section 5.01(d)(xv) will cause
irreparable harm to BMSI by vitiating the intent and purpose of the transaction
contemplated hereby. Accordingly, RDI acknowledges that the remedy at law for a
breach of its obligations under this Section 5.01(d)(xv) will be inadequate and
agrees, in the event of a breach or threatened breach by RDI of the provisions
of this Section 5.01(d)(xv), that RDI shall be entitled, in addition to all
other available remedies, to an order and/or injunction restraining any breach
and requiring immediate issuance and transfer, without the necessity of showing
economic loss and without any bond or other security being required.

      (xvi) Disposition of Assets. So long as any RDI Securities remain
outstanding, neither RDI nor any Subsidiary shall sell, transfer or otherwise
dispose of any of its properties, assets and rights including, without
limitation, its software and intellectual property, to any person except for
sales of obsolete assets and sales to customers in the ordinary course of
business or with the prior written consent of the holders of a majority of the
principal amount of the Notes then outstanding.

      (xvii) Acquisition of Assets. In the event RDI or any Subsidiary acquires
any assets or other properties, such assets or properties shall constitute a
part of the Collateral (as defined in the Security Agreement) and RDI shall take
all action necessary to perfect BMSI's security interest in such assets or
properties pursuant to the Security Agreement.

      (xviii) Share Increase; Reverse Split. As promptly as practicable
following the Closing Date, RDI shall file a preliminary proxy statement on
Schedule 14A (the "Proxy Statement") with the Commission. RDI shall recommend
for approval of RDI's stockholders in the Proxy Statement of (A) an amendment to
the Certificate (the "Charter Amendment") to be filed with the Delaware
Secretary of State to effect an increase in the number of its authorized shares
of Common Stock to at least 575,000,000 (the "Share Increase") and (B) a
one-for-fifty (1-for-50) reverse stock split of the Common Stock (the "Reverse
Split"). RDI shall use its commercially reasonable efforts to obtain stockholder
approval to effect the Share Increase and the Reverse Split as promptly as
practicable following the Closing Date and shall effect the Share Increase and
the Reverse Split as promptly as practicable following the approval of its
stockholders.

                                       26
<PAGE>

      (xix) Subsequent Financings.

            (A) For a period of one (1) year following the Closing Date (which
      one-year period shall extend for each day that the Registration Statement
      is not effective as required under the Registration Rights Agreement), RDI
      covenants and agrees to promptly notify in writing (a "Rights Notice")
      BMSI of the terms and conditions of any proposed offer or sale to, or
      exchange with (or other type of distribution to) any third party (a
      "Subsequent Financing"), of Common Stock or any securities convertible,
      exercisable or exchangeable into Common Stock, including convertible debt
      securities (collectively, the "Financing Securities"); provided, however,
      prior to delivering to BMSI a Rights Notice, RDI shall first deliver to
      BMSI a written notice of its intention to effect a Subsequent Financing
      ("Pre-Notice") within three (3) Trading Days of receiving an applicable
      offer, which Pre-Notice shall ask BMSI if it wants to review the details
      of such financing. Upon the request of BMSI, and only upon a request by
      BMSI within three (3) Trading Days of receipt of a Pre-Notice, RDI shall
      promptly, but no later than two (2) Trading Days after such request,
      deliver a Rights Notice to BMSI. The Rights Notice shall describe, in
      reasonable detail, the proposed Subsequent Financing, the names and
      investment amounts of all investors participating in the Subsequent
      Financing, the proposed closing date of the Subsequent Financing, which
      shall be within twenty (20) calendar days from the date of the Rights
      Notice, and all of the terms and conditions thereof and proposed
      definitive documentation to be entered into in connection therewith. The
      Rights Notice shall provide BMSI an option (the "Rights Option") during
      the ten (10) Trading Days following delivery of the Rights Notice (the
      "Option Period") to inform RDI whether BMSI will purchase up to its pro
      rata portion of all or a portion of the securities being offered in such
      Subsequent Financing on the same, absolute terms and conditions as
      contemplated by such Subsequent Financing. For purposes of this Section,
      all references to "pro rata" means, for any Purchaser electing to
      participate in such Subsequent Financing, the percentage obtained by
      dividing (x) the principal amount of the Note by (y) the sum of (1) the
      principal amount of the Notes and (2) the total principal amount of all of
      the series B notes purchased pursuant to the Note Purchase Agreement.
      Delivery of any Rights Notice constitutes a representation and warranty by
      RDI that there are no other material terms and conditions, arrangements,
      agreements or otherwise except for those disclosed in the Rights Notice,
      to provide additional compensation to any party participating in any
      proposed Subsequent Financing, including, but not limited to, additional
      compensation based on changes in the Purchase Price or any type of reset
      or adjustment of a purchase or conversion price or to issue additional
      securities at any time after the closing date of a Subsequent Financing.
      If RDI does not receive notice of exercise of the Rights Option from BMSI
      within the Option Period, RDI shall have the right to close the Subsequent
      Financing on the scheduled closing date with a third party; provided that
      all of the material terms and conditions of the closing are the same as
      those provided to BMSI in the Rights Notice. If the closing of the
      proposed Subsequent Financing does not occur on that date, any closing of
      the contemplated Subsequent Financing or any other Subsequent Financing
      shall be subject to all of the provisions of this Section 5.02(r),
      including, without limitation, the delivery of a new Rights Notice. The
      provisions of this Section 5.02(r) shall not apply to issuances of
      securities in a Permitted Financing.

                                       27
<PAGE>

            (B) For purposes of this Agreement, a Permitted Financing (as
      defined hereinafter) shall not be considered a Subsequent Financing. A
      "Permitted Financing" shall mean (1) securities issued (other than for
      cash) in connection with a merger, acquisition, or consolidation, (2)
      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 this Agreement and the Note, including the
      Conversion Shares, (3) the Warrant Shares, (4) 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, (5) Common Stock issued or the issuance or grants of options to
      purchase Common Stock pursuant to RDI's stock option plans and employee
      stock purchase plans as they now exist on the date hereof, (6) Common
      Stock issued in connection with consulting or advisory services not in
      excess of 5,000,000 shares; and (7) the payment of any principal in shares
      of Common Stock pursuant to the Notes.

            (C) So long as any Note remains outstanding, if RDI enters into any
      Subsequent Financing on terms more favorable than the terms governing the
      Notes, then BMSI in its sole discretion may exchange the Notes, valued at
      their stated value, for the securities issued or to be issued in the
      Subsequent Financing. RDI covenants and agrees to promptly notify in
      writing BMSI of the terms and conditions of any such proposed Subsequent
      Financing.

      (xx) D&O Insurance. So long as any RDI Securities remain outstanding, RDI
shall maintain its directors and officer's liability insurance policy coverage
at an amount equal to or in excess of $3,000,000.

      (xxi) Performance of Other Obligations. RDI shall perform all obligations
required to be performed by it under the Note Purchase Agreement and the
Transaction Documents referred to therein.

      (xxii) Cooperation to Satisfy BMSI Filing Requirements. So long as so long
as BMSI shall beneficially own any Conversion Shares or Warrant Shares, RDI will
use best efforts to provide BMSI with all financial and other information with
respect to RDI and its Subsidiaries that BMSI may reasonably request to permit
BMSI to satisfy, in a timely manner, any and all requirements applicable to it
under the Securities Act, the Exchange Act or other applicable law.

                                       28
<PAGE>

      Section 5.02 Covenants of BMSI. BMSI agrees that:

      (a) Conduct of Bounce. During the period from the date of this Agreement
and continuing until the Closing Date, BMSI shall cause Bounce to conduct its
business in the ordinary course consistent with past practices and to use its
best efforts to preserve intact its business organizations and relationships
with third parties and to keep available the services of its present officers
and employees. Without limiting the generality of the foregoing, from the date
hereof until the Closing Date, BMSI will not permit Bounce to:

            (i) Adopt or propose any change in its certificate of incorporation
      or bylaws;

            (ii) Merge or consolidate with any other Person or acquire a
      material amount of assets of any other Person;

            (iii) Pay, discharge or satisfy any claims, liabilities or
      obligations (absolute, accrued, asserted or unasserted, contingent or
      otherwise), other than the payment, discharge or satisfaction in the
      ordinary course of business consistent with past practice or in accordance
      with their terms, of liabilities reflected or reserved against in, or
      contemplated by, the Bounce Balance Sheet (or the notes thereto) or
      incurred in the ordinary course of business consistent with past practice;

            (iv) Except as expressly permitted by this Agreement, sell, lease,
      license or otherwise dispose of any material assets or properties except
      (A) pursuant to existing contracts or commitments and (B) in the ordinary
      course of business consistent with past practice; or

            (v) Agree or commit to do any of the foregoing.

BMSI will not, an BMSI will not permit Bounce to, (i) take or agree or commit to
take any action that would make any representation and warranty of BMSI
inaccurate in any respect at, or as of any time prior to, the Closing Date, (ii)
omit or agree or commit to omit to take any action necessary to prevent any such
representation or warranty from being inaccurate in any respect at any such time
or (iii) make any agreement or reach any understanding not approved in writing
by RDI as a condition for obtaining any consent, authorization, approval, order,
license, certificate, or permit required for the consummation of the
transactions contemplated by this Agreement.

      (b) Access to Information. Upon reasonable notice and subject to
restrictions contained in confidentiality agreements to which such party is
subject (from which such party shall use reasonable efforts to be released),
BMSI shall afford to the officers, employees, accountants, counsel and other
representatives of RDI, access, during normal business hours during the period
prior to the Closing, to all of Bounce's properties, books, contracts,
commitments and records and, during such period, BMSI shall furnish promptly to
the other all information concerning Bounce's business, properties and personnel
as RDI may reasonably request, in each case, to the extent necessary to permit
RDI to determine any matter relating to its rights and obligations hereunder or
to any period ending on or before the Closing Date.

      (c) Confidentiality. Prior to the Closing Date and after any termination
of this Agreement, BMSI and its affiliates will hold, an will use best efforts
to cause their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to hold, in confidence, unless compelled to
disclose by judicial or administrative process or by other requirements of law,
all confidential documents and information concerning RDI furnished to BMSI or
its affiliates in connection with the transaction contemplated by this
Agreement, except to the extent that such information can be shown to have been
(i) previously known on a nonconfidential basis by BMSI, (ii) in the public
domain through no fault of BMSI or (iii) later lawfully acquired by BMSI from
sources other than RDI; provided that BMSI may disclose such information to its
officers, directors, employees, accountants, counsel, consultants, advisors and
agents in connection with the transactions contemplated by this Agreement and to
its lenders in connection with obtaining the financing for the transactions
contemplated by this Agreement so long as such Persons are informed by BMSI of
the confidential nature of such information and are directed by BMSI to treat
such information confidentially. The obligation of BMSI and its affiliates to
hold such information in confidence shall be satisfied if they exercise the same
care with respect to such information as they would take to preserve the
confidentiality of their own similar information. If this Agreement is
terminated, BMSI and its affiliates will, and will use best efforts to cause
their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to, destroy or deliver to RDI, upon request,
all documents and other materials, and all copies thereof, obtained by BMSI and
its affiliates or on their behalf from RDI in connection with this Agreement
that are subject to such confidence.

                                       29
<PAGE>

      Section 6.03 Covenants of Both Parties. Each party hereto agrees that:

      (a) Best Efforts. Subject to the terms and conditions of this Agreement,
each of the parties hereto agrees (i) to use its best efforts to take, or cause
to be taken, all actions, and to do, or cause to be done, all things necessary,
proper or advisable under applicable laws and regulations to consummate and make
effective the transactions contemplated by this Agreement, and (ii) to execute
and deliver such other documents, certificates, agreements and other writings
and to take such other actions as may be necessary or desirable in order to
consummate or implement expeditiously the transactions contemplated by this
Agreement.

      (b) Certain Filings. Each of the parties will cooperate with one another
(i) in determining whether any action by or in respect of, or filing with, any
Governmental Entity is require or any actions, consents, approvals or waivers
are required to be obtained from parties to any material contracts, in
connection with the transactions contemplated by this Agreement and (ii) in
taking such actions or making any such filings, furnishing information required
in connection therewith and seeking timely to obtain any such actions, consents,
approvals or waivers.

      (c) Public Announcements. Before any party releases any information
concerning this Agreement or any of the other transactions contemplated hereby
or in connection herewith which is intended for or may result in public
dissemination thereof, it shall cooperate with the other parties, shall furnish
drafts of all documents or proposed oral statements to the other parties for
comment, and shall not release any such information without the written consent
of BMSI (in the case of release by RDI) or RDI (in the case of release by BMSI).
Nothing contained herein shall prevent a party from releasing any information if
required to do so by law.

                                       30
<PAGE>

      (d) Notices. Each of the parties shall give prompt notice to the other
parties of: (a) any notice of, or other communication relating to, a default or
event which, with notice or the lapse of time or both, would become a default,
received by it or any of its subsidiaries subsequent to the date of this
Agreement and prior to the Closing, under any agreement, indenture or instrument
material to the financial condition, properties, businesses or results of
operations of it and its subsidiaries, taken as a whole, to which it or any of
its subsidiaries is a party or is subject; (b) any notice or other communication
from any third party alleging that the consent of such third party is or may be
required in connection with the transactions contemplated by this Agreement,
which consent, if required, would breach the representations contained in
Articles III or IV; and (c) any other material fact or occurrence or any pending
or threatened material occurrence of which it obtains knowledge and which (if
existing and known at the date of the execution of this Agreement) would have
been required to be set forth or disclosed in or pursuant to this Agreement,
which (if existing and known at any time prior to or at the Closing) would make
the performance by any party of a covenant contained in this Agreement
impossible or make such performance materially more difficult than in the
absence of such fact or occurrence, or which (if existing and known at the time
of the Closing) would cause a condition to any party's obligations under this
Agreement not to be fully satisfied.

                                   ARTICLE VI
                                   CONDITIONS

      Section 6.01 Conditions to Each Party's Obligation. The obligation of each
party to consummate the Closing is subject to the satisfaction of the following
conditions:

            (a) All authorizations, consents, orders or approvals of, or
      declarations or filings with, or expirations or terminations of waiting
      periods imposed by, any Governmental Entity, and all required third party
      consents, shall have been filed, occurred or been obtained.

            (b) No statute, rule, regulation, executive order, decree or
      injunction shall have been enacted, entered, promulgated or enforced by
      any court or governmental authority which prohibits the consummation of
      the Closing and shall be in effect.

      Section 6.02 Conditions to Obligation of RDI. The obligation of RDI to
consummate the Closing is subject to the satisfaction of the following further
conditions:

            (a) The representations and warranties of BMSI set forth in this
      Agreement shall be true and correct as of the date of this Agreement, and
      shall also be true in all material respects (except for such changes as
      are contemplated by the terms of this Agreement and such changes as would
      be required to be made in the exhibits to this Agreement if such schedules
      were to speak as of the Closing Date) on and as of the Closing Date with
      the same force and effect as though made on and as of the Closing Date.

            (b) BMSI and Bounce shall have performed in all material respects
      all obligations required to be performed by them under this Agreement at
      or prior to the Closing Date.

                                       31
<PAGE>

            (c) RDI shall have a received a certificate signed by the Chief
      Executive Officer of BMSI confirming Section 6.02(a) and (b).

            (d) RDI shall have received (i) resolutions duly adopted by the
      Board of Directors of the BMSI approving the execution and delivery of
      this Agreement and all other necessary or proper corporate action to
      enable BMSI to comply with the terms of this Agreement, and (ii) all other
      documents it may reasonably request relating to the existence of BMSI and
      the authority of BMSI for this Agreement, all in form and substance
      reasonable satisfactory to RDI.

      Section 6.03 Conditions to Obligation of BMSI. The obligation of BMSI to
consummate the Closing is subject to the following further conditions:

            (a) The representations and warranties of RDI set forth in this
      Agreement shall be true and correct as of the date of this Agreement, and
      shall also be true in all material respects (except for such changes as
      are contemplated by the terms of this Agreement and such changes as would
      be required to be made in the exhibits to this Agreement if such schedules
      were to speak as of the Closing Date) on and as of the Closing Date with
      the same force and effect as though made on and as of the Closing Date.

            (b) RDI shall have performed in all material respects all
      obligations required to be performed by it under this Agreement at or
      prior to the Closing Date.

            (c) BMSI shall have a received a certificate signed by the Chief
      Executive Officer of RDI confirming Section 6.03(a) and (b).

            (d) BMSI shall have received (i) resolutions duly adopted by the
      Board of Directors of RDI approving the execution and delivery of this
      Agreement and all other necessary or proper corporate action to enable RDI
      to comply with the terms of this Agreement, and (ii) all other documents
      it may reasonably request relating to the existence of RDI and the
      authority of RDI for this Agreement, all in form and substance reasonable
      satisfactory to BMSI.

            (e) RDI shall have made all filings, and taken all actions,
      necessary to comply with all reporting requirements under federal and
      state securities laws (including without limitation, applicable "blue-sky"
      laws with regard to the issuance of RDI Securities as contemplated by this
      Agreement) other than the filing of Form D up to 15 days following the
      Closing. Without limiting the generality of the foregoing, any prescribed
      periods within which a "blue sky" or securities law administrator may
      disallow RDI's notice of reliance on an exemption from such state's
      requirements, shall have elapsed at or prior to the Closing Date.

            (f) (i) The Certificate of Designation, Preferences and Rights of
      RDI's Series B Convertible Preferred Stock shall have been amended and
      restated in the form of Exhibit I-1 hereto and (ii) RDI and the holders of
      its Series B Convertible Preferred Stock shall have entered into Amendment
      No.1 to Securities Purchase Agreement in the form of Exhibit I-2 hereto.

                                       32
<PAGE>

                                   ARTICLE VII
                            SURVIVAL; INDEMNIFICATION

      Section 7.01 Survival. The covenants, agreements, representations and
warranties of the parties hereto contained in this Agreement or in any
certificate or other writing delivered pursuant hereto or in connection herewith
shall survive the Closing until the second anniversary of the Closing Date;
provided that the covenants of RDI set forth in Section 5.02(d) shall survive
for such longer period of time as may be stated therein. Notwithstanding the
preceding sentence, any covenant, agreement, representation or warranty in
respect of which indemnity may be sought under Section 7.02 shall survive the
time at which it would otherwise terminate pursuant to the preceding sentence,
if notice of the inaccuracy or breach thereof giving rise to such right to
indemnity shall have been given to the party against whom such indemnity may be
sought prior to such time.

      Section 7.02 Indemnification.

      (a) RDI hereby indemnifies BMSI against and agrees to hold them harmless
from any and all damage, loss, liability and expense (including without
limitation reasonable expenses of investigation and reasonable attorneys' fees
and expenses in connection with any action, suit or proceeding) ("Damages")
incurred or suffered by BMSI arising out of any misrepresentation or breach of
warranty, covenant or agreement made or to be performed by RDI pursuant to this
Agreement.

      (b) BMSI hereby indemnifies RDI against and agrees to hold it harmless
from any and all Damages incurred or suffered by RDI arising out of any
misrepresentation or breach of warranty, covenant or agreement made or to be
performed by BMSI pursuant to this Agreement.

      Section 7.03 Procedures; Exclusivity

      (a) The party seeking indemnification under Section 7.02 (the "Indemnified
Party") agrees to give prompt notice to the party against whom indemnity is
sought (the "Indemnifying Party") of the assertion of any claim, or the
commencement of any suit, action or proceeding in respect of which indemnity may
be sought under such Section. The Indemnifying Party may at the request of the
Indemnified Party participate in and control the defense of any such suit,
action, or proceeding at its own expense. The Indemnifying Party shall not be
liable under Section 7.02 for any settlement effected without its consent of any
claim, litigation or proceeding in respect of which indemnity may be sought
hereunder.

      (b) After the Closing, Section 7.02 will provide the exclusive remedy for
any misrepresentation, breach or warranty, covenant or other agreement (other
than those contained in the Series C Preferred Stock Certificate of
Designations, the other Transaction Documents or the Note Purchase Agreement (or
the Transaction Documents referred to therein)) or other claim arising out of
this Agreement or the transactions contemplated hereby.

                                       33
<PAGE>

                                  ARTICLE VIII
                            TERMINATION AND AMENDMENT

      Section 8.01 Termination. This Agreement may be terminated at any time
prior to the Closing Date:

            (a) by mutual consent of BMSI and RDI;

            (b) by either BMSI or RDI if the Closing shall not have been
      consummated before November 30, 2006 (unless the failure to consummate the
      Closing by such date shall be due to the action or failure to act of the
      party seeking to terminate this Agreement); or

            (c) by either BMSI or RDI if (i) the conditions to such party's
      obligations shall have become impossible to satisfy or (ii) any permanent
      injunction or other order of a court or other competent authority
      preventing the consummation of the Closing shall have become final and
      non-appealable.

      Section 8.02 Effect of Termination. In the event of the termination and
abandonment of this Agreement pursuant to Section 8.01 hereof, this Agreement
shall forthwith become void and have no effect, without any liability on the
part of any party hereto or its affiliates, directors, officers or stockholders,
other than the provisions of Sections 5.01(c) and 5.02(c). Nothing contained in
this Section 8.02 shall relieve any party from liability for any breach of this
Agreement.

      Section 8.03 Amendment. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties hereto.

      Section 8.04 Extension; Waiver. At any time prior to the Closing Date, the
parties hereto may, to the extent legally allowed, (i) extend the time for the
performance of any of the obligations or other acts of the other parties hereto,
(ii) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto and (iii) waive compliance
with any of the agreements or conditions contained herein. Any agreement on the
part of a party hereto to any such extension or waiver shall be valid only if
set forth in a written instrument signed on behalf of such party.

                                   ARTICLE IX
                                  MISCELLANEOUS

      Section 9.01 Entire Agreement; Assignment. This Agreement and the other
Transaction Documents (a) constitute the entire agreement and supersede all
prior agreements and understandings, both written and oral, among the parties
with respect to the subject matter hereof (other than any confidentiality
agreement between the parties; any provisions of such agreements which are
inconsistent with the transactions contemplated by this Agreement being waived
hereby) and (b) shall not be assigned by operation of law or otherwise (except
as provided in the Other Transaction Documents).

                                       34
<PAGE>

      Section 9.02 Expenses. Whether or not the transactions contemplated in
this Agreement are consummated, all costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby, will be paid by
the party incurring such expense or as otherwise agreed to herein; provided that
RDI will pay to BMSI at Closing the amount of $20,000 in respect of
documentation and due diligence expenses incurred by BMSI.

      Section 9.03 Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing and shall be mailed by
certified mail, return receipt requested or by the most nearly comparable method
if mailed from or to a location outside of the United States or by Federal
Express, Express Mail, or similar overnight delivery or courier service or
delivered (in person or by telecopy, telex, or similar telecommunications
equipment) against receipt to the party to which it is to be given at the
address of such party set forth in the signature pages to this Agreement (or to
such other address as the party shall have furnished in writing in accordance
with the provisions of this Section 9.03. Any notice or other communication
given by certified mail (or by such comparable method) shall be deemed given at
the time of certification thereof (or comparable act), except for a notice
changing a party's address which will be deemed given at the time of receipt
thereof. Any notice given by other means permitted by this Section 9.03 shall be
deemed given at the time of receipt thereof.

      Section 9.04 Parties in Interest. This Agreement will inure to the benefit
of and be binding upon the parties hereto and the respective successors and
assigns. Nothing in this Agreement is intended to confer, expressly or by
implication, upon any other person any rights or remedies under or by reason of
this Agreement.

      Section 9.05 Counterparts. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original and all together will
constitute one document. The delivery by facsimile of an executed counterpart of
this Agreement will be deemed to be an original and will have the full force and
effect of an original executed copy.

      Section 9.06 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

      Section 9.07 Headings. The Article and Section headings are provided
herein for convenience of reference only and do not constitute a part of this
Agreement and will not be deemed to limit or otherwise affect any of the
provisions hereof.

                                       35
<PAGE>

      Section 9.08 Governing Law; Jurisdiction. This Agreement will be deemed to
be made in and in all respects will be interpreted, construed and governed by
and in accordance with the law of the State of Delaware without regard to any
applicable principles of conflicts of law. This Agreement shall not be
interpreted or construed with any presumption against the party causing this
Agreement to be drafted. RDI and BMSI agree that venue for any dispute arising
under this Agreement 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. RDI and BMSI irrevocably consent to personal jurisdiction in the state
and federal courts of the state of New York. RDI and BMSI 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 Agreement and
agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing in this Section 9.08 shall affect or limit any right
to serve process in any other manner permitted by law. RDI and BMSI hereby agree
that the prevailing party in any suit, action or proceeding arising out of or
relating to this Agreement or the other Transaction Documents, 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.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       36
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement in a manner legally binding upon them as of the date first above
written.

                                        REMOTE DYNAMICS, INC.

                                        By_________________________
                                          Name:
                                          Title:
                                          Address:

Attest:

________________
Name:
Title: Secretary

                                        BOUNCE MOBILE SYSTEMS, INC.

                                        By____________________________
                                          Name: David Walters
                                          Title: Chief Executive Officer
                                          Address: 30900 Rancho Viejo Road
                                                   San Juan Capistrano, CA 92675

Attest:

________________
Name:
Title: Secretary

                                       37
<PAGE>

                                    EXHIBIT H
                 FORM OF IRREVOCABLE TRANSFER AGENT INSTRUCTIONS

                              REMOTE DYNAMICS, INC.

                                                         as of November __, 2006

[Name and address of Transfer Agent]
Attn: _____________

Ladies and Gentlemen:

      Reference is made to that certain Share Exchange Agreement (the "Share
Exchange Agreement"), dated as of November 30, 2006, by and among Remote
Dynamics, Inc., a Delaware corporation (the "Company"), and Bounce Mobile
Systems, Inc. ("BMSI") pursuant to which the Company is issuing to BMSI the
Notes and Warrants (each, as defined in the Share Exchange Agreement). This
letter shall serve as our irrevocable authorization and direction to you
(provided that you are the transfer agent of the Company at such time) to issue
shares of the Company's common stock, par value $.01 per share, upon conversion
of the Notes (the "Conversion Shares") and exercise of the Warrants (the
"Warrant Shares") to or upon the order of BMSI from time to time upon (i)
surrender to you of a properly completed and duly executed Conversion Notice or
Exercise Notice, as the case may be, in the form attached hereto as Exhibit I
and Exhibit II, respectively, (ii) in the case of the conversion of Notes, a
copy of the Note (with the original delivered to the Company) representing the
Notes being converted or, in the case of Warrants being exercised, a copy of the
Warrants (with the original Warrants delivered to the Company) being exercised
(or, in each case, an indemnification undertaking with respect to such Notes or
the Warrants in the case of their loss, theft or destruction), and (iii)
delivery of a treasury order or other appropriate order duly executed by a duly
authorized officer of the Company. So long as you have previously received (x)
written confirmation from counsel to the Company that a registration statement
covering resales of the Conversion Shares or Warrant Shares, as applicable, has
been declared effective by the Securities and Exchange Commission (the "SEC")
under the Securities Act of 1933, as amended (the "1933 Act"), and no subsequent
notice by the Company or its counsel of the suspension or termination of its
effectiveness and (y) a copy of such registration statement, and if BMSI
represents in writing that the prospectus delivery requirements have been or
will be met, the Conversion Shares or the Warrant Shares, as the case may be,
were sold pursuant to the Registration Statement, then certificates representing
the Conversion Shares and the Warrant Shares, as the case may be, shall not bear
any legend restricting transfer of the Conversion Shares and the Warrant Shares,
as the case may be, thereby and should not be subject to any stop-transfer
restriction. Provided, however, that if you have not previously received (i)
written confirmation from counsel to the Company that a registration statement
covering resales of the Conversion Shares or Warrant Shares, as applicable, has
been declared effective by the SEC under the 1933 Act, and (ii) a copy of such
registration statement, then the certificates for the Conversion Shares and the
Warrant Shares shall bear the following legend:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE 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 OR APPLICABLE STATE
      SECURITIES LAWS, OR REMOTE DYNAMICS, INC. SHALL HAVE RECEIVED AN OPINION
      OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
      ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED."

                                       38
<PAGE>

and, provided further, that the Company may from time to time notify you to
place stop-transfer restrictions on the certificates for the Conversion Shares
and the Warrant Shares in the event a registration statement covering the
Conversion Shares and the Warrant Shares is subject to amendment for events then
current.

      A form of written confirmation from counsel to the Company that a
registration statement covering resales of the Conversion Shares and the Warrant
Shares has been declared effective by the SEC under the 1933 Act is attached
hereto as Exhibit III.

      Please be advised that BMSI is relying upon this letter as an inducement
to enter into the Share Exchange Agreement and, accordingly, BMSI is a third
party beneficiary to these instructions.

      Please execute this letter in the space indicated to acknowledge your
agreement to act in accordance with these instructions. Should you have any
questions concerning this matter, please contact me at ___________.

                                            Very truly yours,

                                            REMOTE DYNAMICS, INC.

                                            By:_________________________________

                                            Name:_______________________________
                                            Title:______________________________

ACKNOWLEDGED AND AGREED:

[TRANSFER AGENT]

By:_____________________
Name:___________________
Title:__________________
Date:___________________

                                       39

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