Document:

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                                                                    EXHIBIT 10.6

                           MOBILITY ELECTRONICS, INC.

                              AMENDED AND RESTATED
                          1996 LONG TERM INCENTIVE PLAN
                    (As further amended on January 13, 2000)

                       (Effective as of January 13, 2000)

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                           MOBILITY ELECTRONICS, INC.

                              AMENDED AND RESTATED
                          1996 LONG TERM INCENTIVE PLAN
                    (As further amended on January 13, 2000)

                       (Effective as of January 13, 2000)

     1. Purpose. The purpose of this Amended and Restated 1996 Long Term
Incentive Plan (the "Plan") of Mobility Electronics, Inc., a Delaware
corporation (the "Company"), is to advance the interests of the Company and its
stockholders by providing a means to attract, retain, and reward Directors,
executive officers, and other key employees and consultants of and service
providers to the Company and its subsidiaries (including consultants and others
providing services of substantial value) and to enable such persons to acquire
or increase a proprietary interest in the Company, thereby promoting a closer
identity of interests between such persons and the Company's stockholders.

     2. Definitions. The definitions of awards under the Plan, including
Options, SARs (including Limited SARs), Restricted Stock, Deferred Stock, Stock
granted as a bonus or in lieu of other awards, Dividend Equivalents and Other
Stock-Based Awards are set forth in Section 6 hereof. Such awards, together with
any other right or interest granted to a Participant under the Plan, are termed
"Awards." For purposes of the Plan, the following additional terms shall be
defined as set forth below:

        (a) "Award Agreement" means any written agreement, contract, notice or
other instrument or document evidencing an Award.

        (b) "Beneficiary" shall mean the person, persons, trust or trusts which
have been designated by a Participant in his or her most recent written
beneficiary designation filed with the Committee to receive the benefits
specified under the Plan upon such Participant's death or, if there is no
designated Beneficiary or surviving designated Beneficiary, then the person,
persons, trust or trusts entitled by will or the laws of descent and
distribution to receive such benefits.

        (c) "Board" means the Board of Directors of the Company.

        (d) "Code" means the Internal Revenue Code of 1986. References to any
provision of the Code shall be deemed to include regulations thereunder and
successor provisions and regulations thereto.

        (e) "Committee" means the Compensation Committee of the Board, or such
other Board committee as may be designated by the Board to administer the Plan;
provided, however, that the Committee shall consist of two or more Directors,
each of whom is a "nonemployee director" within the meaning of Rule 16b-3 and an
"outside director" within the meaning of Section 162(m) of the Code.

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        (f) "Director" means a member of the Board or a member of the board of
directors of a subsidiary of the Company.

        (g) "Employee" means an employee (as defined under Section 3401(c) of
the Code and the regulations thereunder) of the Company or of any subsidiary of
the Company that adopts the Plan, including officers.

        (h) "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time. References to any provision of the Exchange Act shall be
deemed to include rules thereunder and successor provisions and rules thereto.

        (i) "Fair Market Value" means, with respect to Stock, Awards, or other
property, the fair market value of such Stock, Awards, or other property
determined by such methods or procedures as shall be established from time to
time by the Committee, provided, however, that (i) if the Stock is listed on a
national securities exchange or quoted in an interdealer quotation system, the
Fair Market Value of such Stock on a given date shall be based upon the last
sales price or, if unavailable, the average of the closing bid and asked prices
per share of the Stock on such date (or, if there was no trading or quotation in
the Stock on such date, on the next preceding date on which there was trading or
quotation) as reported in The Wall Street Journal (or other reporting service
approved by the Committee), (ii) the "Fair Market Value" of Stock subject to
Options granted effective upon consummation of the Initial Public Offering shall
be the Initial Public Offering price of the shares to issued and sold in the
Initial Public Offering, as set forth in the first final prospectus used in such
offering (the provisions of clause (i) notwithstanding) and (iii) the "Fair
Market Value" of Stock prior to the date of the Initial Public Offering shall be
as determined by the Board of Directors in their sole discretion.

        (j) "Initial Public Offering" shall mean an underwritten initial public
offering of shares of Stock registered with the Securities and Exchange
Commission in compliance with the provisions of the Securities Act of 1933, as
amended.

        (k) "Nonemployee Director" means a member of the Board who is not an
Employee; provided, however, that, as used in Section 2(e) without initial
capital letters, the term "nonemployee director" has the meaning provided in
that section.

        (l) "Participant" means a person who, at a time when eligible under
Section 5 hereof, has been granted an Award under the Plan.

        (m) "Rule 16b-3" means Rule 16b-3, as from time to time in effect and
applicable to the Plan and Participants, promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act.

        (n) "Stock" means the common stock, par value $0.01 per share, of the
Company, and such other securities as may be substituted for Stock or such other
securities pursuant to Section 4 hereof.

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     3. Administration.

     (a) Authority of the Committee. The Plan shall be administered by the
Committee. The Committee shall have full and final authority to take the
following actions, in each case subject to and consistent with the provisions of
the Plan and applicable law:

        (i) to select persons to whom Awards may be granted;

        (ii) to determine the type or types of Awards to be granted to each such
     person;

        (iii) to determine the number of Awards to be granted, the number of
     shares of Stock to which an Award will relate, the terms and conditions of
     any Award granted under the Plan (including, but not limited to, any
     exercise price, grant price or purchase price, any restriction or
     condition, any schedule for lapse of restrictions or conditions relating to
     transferability or forfeiture, exercisability or settlement of an Award,
     and waivers or accelerations thereof, performance conditions relating to an
     Award (including performance conditions relating to Awards not intended to
     be governed by Section 7(e) and waivers and modifications thereof), based
     in each case on such considerations as the Committee shall determine), and
     all other matters to be determined in connection with an Award;

        (iv) to determine whether, to what extent and under what circumstances
     an Award may be settled, or the exercise price of an Award may be paid, in
     cash, Stock, other Awards, or other property, or an Award may be cancelled,
     forfeited, or surrendered;

        (v) to determine whether, to what extent and under what circumstances
     cash, Stock, other Awards or other property payable with respect to an
     Award will be deferred either automatically, at the election of the
     Committee or at the election of the Participant;

        (vi) to prescribe the form of each Award Agreement, which need not be
     identical for each Participant;

        (vii) to adopt, amend, suspend, waive and rescind such rules and
     regulations and appoint such agents as the Committee may deem necessary or
     advisable to administer the Plan;

        (viii) to correct any defect or supply any omission or reconcile any
     inconsistency in the Plan and to construe and interpret the Plan and any
     Award, rules and regulations, Award Agreement or other instrument
     hereunder; and

        (ix) to make all other decisions and determinations as may be required
     under the terms of the Plan or as the Committee may deem necessary or
     advisable for the administration of the Plan.

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     (b) Manner of Exercise of Committee Authority. Unless authority is
specifically reserved to the Board under the terms of the Plan, the Company's
Certificate of Incorporation or Bylaws, or applicable law, the Committee shall
have sole discretion in exercising authority under the Plan. Any action of the
Committee with respect to the Plan shall be final, conclusive and binding on all
persons, including the Company, subsidiaries of the Company, Participants, any
person claiming any rights under the Plan from or through any Participant and
stockholders, except to the extent the Committee may subsequently modify, or
take further action not consistent with, its prior action. If not specified in
the Plan, the time at which the Committee must or may make any determination
shall be determined by the Committee, and any such determination may thereafter
be modified by the Committee (subject to Section 8(e)). The express grant of any
specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. The
Committee may delegate to officers or managers of the Company or any subsidiary
of the Company the authority, subject to such terms as the Committee shall
determine, to perform administrative functions and, with respect to Participants
not subject to Section 16 of the Exchange Act, to perform such other functions
as the Committee may determine, to the extent permitted under Rule 16b-3, if
applicable, and other applicable law.

     (c) Limitation of Liability. Each member of the Committee shall be entitled
to, in good faith, rely or act upon any report or other information furnished to
him by any officer or other Employee of the Company or any subsidiary, the
Company's independent certified public accountants or any executive compensation
consultant, legal counsel or other professional retained by the Company to
assist in the administration of the Plan. No member of the Committee, nor any
officer or Employee of the Company acting on behalf of the Committee, shall be
personally liable for any action, determination or interpretation taken or made
in good faith with respect to the Plan, and all members of the Committee and any
officer or Employee of the Company acting on its behalf shall, to the extent
permitted by law, be fully indemnified and protected by the Company with respect
to any such action, determination or interpretation.

     4. Stock Subject to Plan.

     (a) Amount of Stock Reserved. The total amount of Stock that may be subject
to outstanding awards, determined immediately after the grant of any Award,
shall not exceed 2,500,000 shares of Stock. Notwithstanding the foregoing, the
number of shares that may be delivered as Restricted Stock and Deferred Stock
(other than pursuant to an Award granted under Section 7(e)) shall not in the
aggregate exceed 550,000; provided, however, that the shares subject to
Restricted Stock or Deferred Stock Awards shall not be deemed delivered if such
Awards are forfeited, expire or otherwise terminate without delivery of shares
to the Participant. If an Award valued by reference to Stock may be settled only
in cash, the number of shares to which such Award relates shall be deemed to be
Stock subject to such Award for purposes of this Section 4(a). Any shares of
Stock delivered pursuant to an Award may consist, in whole or in part, of
authorized and unissued shares, treasury shares or shares acquired in the market
for a Participant's account.

     (b) Annual Per-Participant Limitations. During any calendar year, no
Participant may be granted Awards that may be settled by delivery of more than
250,000 shares of Stock, subject

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to adjustment as provided in Section 4(c). In addition, with respect to Awards
that may be settled in cash (in whole or in part), no Participant may be paid
during any calendar year cash amounts relating to such Awards that exceed the
greater of the Fair Market Value of the number of shares of Stock set forth in
the preceding sentence at the date of grant or the date of settlement of Award.
This provision sets forth two separate limitations, so that Awards that may be
settled solely by delivery of Stock will not operate to reduce the amount of
cash-only Awards, and vice versa; nevertheless, Awards that may be settled in
Stock or cash must not exceed either limitation.

     (c) Adjustments. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, Stock or other
property), recapitalization, forward or reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase or exchange of Stock or other
securities, liquidation, dissolution, or other similar corporate transaction or
event, affects the Stock such that an adjustment is appropriate in order to
prevent dilution or enlargement of the rights of Participants under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any or
all of (i) the number and kind of shares of Stock reserved and available for
Awards under Section 4(a), including shares reserved Restricted and Deferred
Stock, (ii) the number and kind of shares of Stock specified in the annual
per-participant limitations under Section 4(b), (iii) the number and kind of
shares of outstanding Restricted Stock or other outstanding Award in connection
with which shares have been issued, (iv) the number and kind of shares that may
be issued in respect of other outstanding Awards and (v) the exercise price,
grant price or purchase price relating to any Award or, if deemed appropriate,
the Committee may make provision for a cash payment with respect to any
outstanding Award. In addition, the Committee is authorized to make adjustments
in the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events (including, without limitation,
events described in the preceding sentence) affecting the Company or any
subsidiary or the financial statements of the Company or any subsidiary, or in
response to changes in applicable laws, regulations, or accounting principles.
The foregoing notwithstanding, no adjustments shall be authorized under this
Section 4(c) with respect to Options, SARs or other Awards subject to Section
7(e) to the extent that such authority wold cause such Awards to fail to qualify
as "qualified performance-based compensation" under Section 162(m)(4)(C) of the
Code.

     5. Eligibility. Executive officers and other Employees of the Company and
its subsidiaries, Directors, and persons who provide consulting, advisory, or
other services to the Company deemed by the Committee to be of substantial value
to the Company are eligible to be granted Awards under the Plan. In addition, a
person who has been offered employment by the Company or its subsidiaries is
eligible to be granted an Award under the Plan, provided that such Award shall
be cancelled if such person fails to commence such employment, and no payment of
value may be made in connection with such Award until such person has commenced
such employment.

     6. Specific Terms of Awards.

     (a) General. Awards may be granted on the terms and conditions set forth
in this Section 6. In addition, the Committee may impose on any Award or the
exercise thereof such additional

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terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall determine, including terms requiring forfeiture of Awards in the
event of termination of employment or service of the Participant. Except as
provided in Section 6(f), 6(h), or 7(a), or to the extent required to comply
with requirements of the Delaware General Corporation Law that lawful
consideration be paid for Stock, only services may be required as consideration
for the grant (but not the exercise) of any Award.

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

          (i) Nature of Options. Options may be either incentive stock options
     (within the meaning of Section 422 of the Code) ("Incentive Options") or
     Options that do not qualify as Incentive Options ("Nonqualified Options");
     provided, however, that an Incentive Option may be granted only to a person
     who is an Employee on the date of grant of the Option.

          (ii) Exercise Price. The exercise price per share of Stock purchasable
     under an Option shall be determined by the Committee; provided, however,
     that such exercise price shall be not less than the Fair Market Value of a
     share of Stock on the date of grant of such Option; and provided further
     that, in the case of an Incentive Option granted to a person who, on the
     date of grant of the Option, owns stock possessing more than ten percent of
     the total combined voting power of all classes of stock of the Company or
     of any subsidiary of the Company, the exercise price per share of Stock
     purchasable under such Incentive Option shall be not less than 110 percent
     of the Fair Market Value of a share of Stock on the date the Incentive
     Option is granted.

          (iii) Time and Method of Exercise. The Committee shall determine the
     time or times at which an Option may be exercised in whole or in part, the
     methods by which such exercise price may be paid or deemed to be paid, the
     form of such payment, including, without limitation, cash, Stock, other
     Awards or awards granted under other Company plans or other property
     (including notes or other contractual obligations of Participants to make
     payment on a deferred basis, such as through "cashless exercise"
     arrangements, to the extent permitted by applicable law), and the methods
     by which Stock will be delivered or deemed to be delivered to Participants.
     Notwithstanding the foregoing, no Incentive Option shall be exercisable
     after the expiration of ten years from the date such Incentive Option is
     granted; provided, that, in the case of an Incentive Option granted to a
     person who, on the date of grant of the Option, owns stock possessing more
     than ten percent of the total combined voting power of all classes of stock
     of the Company or of any subsidiary of the Company, the Incentive Option
     shall not be exercisable after the expiration of five years from the date
     of grant of the Incentive Option.

          (iv) Termination of Employment. Unless otherwise determined by the
     Committee, upon termination of a Participant's employment with the Company
     and its subsidiaries, such Participant may exercise any Options during the
     three-month period (or such other period as may be specified by the
     Committee in an Award Agreement) following

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such termination of employment, but only to the extent such Option was
exercisable immediately prior to such termination of employment. Notwithstanding
the foregoing, if the Participant's employment with the Company is governed by
an employment agreement and the Committee determines that such termination is
"for cause" as defined in the Participant's employment agreement, all Options
held by the Participant shall terminate as of the termination of employment
unless otherwise specified in the Participant's Award Agreement.

          (v) Automatic Grants of Options to Nonemployee Directors.

             (A) Effective January 13, 2000, immediately and automatically each
then current Nonemployee Director and, upon initial election to the Board, each
new Nonemployee Director, will receive a Nonqualified Option to purchase 20,000
shares of Common Stock, which will be fully exercisable on the one-year
anniversary of the date of grant, but only if such Nonemployee Director has
continuously served as a director of the Company during such one-year period. In
addition, effective January 13, 2000, each Nonemployee Director will receive a
Nonqualified Stock Option to purchase 30,000 shares of Common Stock at the
annual meeting of stockholders of the Company following the initial year he has
served as a director, if such Nonemployee Director will continue as a director
for the following year (i.e, either through re-election or as a result of his
term not expiring), and every fourth year thereafter (the "Renewal Option").
Each Renewal Option will vest 25% annually, with the initial 25% becoming
exercisable on the date of grant of the option and an additional 25% becoming
exercisable on each of the first anniversaries of the grant date (but only if
such Nonemployee Director is a director of the Company at the time of vesting).
Effective at the Annual Meeting of Directors of the Company to be held on
January 13, 2000, and at each Annual Meeting of Directors thereafter, each
Nonemployee Director who is elected to serve on either the Audit Committee or
Compensation Committee of the Company shall receive an option to purchase 5,000
shares of Common Stock, which option shall be fully exercisable at the end of
the one-year term of such office (but only if such Nonemployee Director serves
on such committee for the entire term).

             (B) The purchase price for Stock acquired pursuant to the exercise
of an Option granted pursuant to this subparagraph (v) shall be the Fair Market
Value of the Stock on the date of the grant of the Option. All Options granted
under this subparagraph (v) shall provide for a period of exercisability of four
years as to each Option (or, where vesting is in 25-percent increments, as to
each vested 25-percent portion of the Option), commencing on the date the Option
(or, if applicable, such 25-percent portion of the Option) vests. If a person
receiving an Option under this subparagraph (v) is not reelected to the Board,
resigns, or is removed from the Board for any reason, then any portion of such
persons Options granted under this subparagraph (v) that is not vested at such
time shall terminate.

             (C) The Committee, in its discretion, may change the terms and
conditions of, and the number of shares of Stock subject to, an Option granted
pursuant to this

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subparagraph (v) at any time prior to or on the date such Option is to be
automatically granted hereunder.

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

         (i) Right to Payment. An SAR shall confer on the Participant to whom it
     is granted a right to receive, upon exercise thereof, the excess of the
     Fair Market Value of one share of Stock on the date of exercise (or, if the
     Committee shall so determine in the case of any such right, the Fair Market
     Value of one share at any time during a specified period before or after
     the date of exercise), over the grant price of the SAR as determined by the
     Committee as of the date of grant of the SAR, which, except as provided in
     Section 7(a), shall be not less than the Fair Market Value of one share of
     Stock on the date of grant.

         (ii) Other Terms. The Committee shall determine the time or times at
     which an SAR may be exercised in whole or in part, the method of exercise,
     method of settlement, form of consideration payable in settlement, method
     by which Stock will be delivered or deemed to be delivered to Participants,
     whether or not an SAR shall be in tandem with any other Award, and any
     other terms and conditions of any SAR. Limited SARs that may be exercised
     only upon the occurrence of a change in control of the Company (as defined
     in the applicable Award Agreement) may be granted on such terms, not
     inconsistent with this Section 6(c), as the Committee may determine.
     Limited SARs may be either freestanding or in tandem with other Awards.

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

         (i) Grant and Restrictions. Restricted Stock shall be subject to such
     restrictions on transferability and other restrictions, if any, as the
     Committee may impose, which restrictions may lapse separately or in
     combination at such times, under such circumstances, in such installments,
     or otherwise, as the Committee may determine. Except to the extent
     restricted under the terms of the Plan and any Award Agreement relating to
     the Restricted Stock, a Participant granted Restricted Stock shall have all
     of the rights of a stockholder including, without limitations, the right to
     vote Restricted Stock and the right to receive dividends thereon.

         (ii) Forfeiture. Except as otherwise determined by the Committee, upon
     termination of employment or service (as determined under criteria
     established by the Committee) during the applicable restriction period,
     Restricted Stock that is at that time subject to restrictions shall be
     forfeited and reacquired by the Company; provided, however, that the
     Committee may provide, by rule or regulation or in any Award Agreement, or
     may determine in any individual case, that restrictions or forfeiture
     conditions relating to

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     Restricted Stock will be waived in whole or in part in the event of
     termination resulting from specified causes.

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

         (iv) Dividends. Dividends paid on Restricted Stock shall be paid at the
     dividend payment dates in cash or in the shares of unrestricted Stock
     having a Fair Market Value equal to the amount of such dividends, or the
     payment of such dividends shall be deferred and/or the amount or value
     thereof automatically reinvested in additional Restricted Stock, other
     Awards, or other investment vehicles, as the Committee shall determine or
     permit the Participant to elect. Stock distributed in connection with a
     Stock split or Stock dividend, and other property distributed as a
     dividend, shall be subject to restrictions and a risk of forfeiture to the
     same extent as the Restricted Stock with respect to which such Stock or
     other property has been distributed, unless otherwise determined by the
     Committee.

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

         (i) Award and Restrictions. Delivery of Stock will occur upon
     expiration of the deferral period specified for an Award of Deferred Stock
     by the Committee (or, if permitted by the Committee, as elected by the
     Participant). In addition, Deferred Stock shall be subject to such
     restrictions as the Committee may impose, if any, which restrictions may
     lapse at the expiration of the deferral period or at earlier specified
     times, separately or in combination, in installments or otherwise, as the
     Committee may determine.

         (ii) Forfeiture. Except as otherwise determined by the Committee, upon
     termination of employment or service (as determined under criteria
     established by the Committee) during the applicable deferral period or
     portion thereof to which forfeiture conditions apply (as provided in the
     Award Agreement evidencing the Deferred Stock), all Deferred Stock that is
     at that time subject to such forfeiture conditions shall be forfeited;
     provided, however, that the Committee may provide, by rule or regulation or
     in any Award Agreement, or may determine in any individual case, that
     restrictions or forfeiture conditions relating to Deferred Stock will be
     waived in whole or in part in the event of termination resulting from
     specified causes.

         (f) Bonus Stock and Awards in Lieu of Cash Obligations. The Committee
     is authorized to grant Stock as a bonus, or to grant Stock or other Awards
     in lieu of Company obligations to pay

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cash under other plans or compensatory arrangements. Stock or Awards granted
hereunder shall be subject to such other terms as shall be determined by the
Committee.

     (g) Dividend Equivalents. The Committee is authorized to grant dividend
equivalents entitling the Participant to receive cash, Stock, other Awards or
other property equal in value to dividends paid with respect to a specified
number of shares of Stock ("Dividend Equivalents"). Dividend Equivalents may be
awarded on a free-standing basis or in connection with another Award. The
Committee may provide that Dividend Equivalents shall be paid or distributed
when accrued or shall be deemed to have been reinvested in additional Stock,
Awards or other investment vehicles, and subject to such restrictions on
transferability and risks of forfeiture, as the Committee may specify.

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

     7. Certain Provisions Applicable to Awards.

     (a) Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted
under the Plan may, in the discretion of the Committee, be granted either alone
or in addition to, in tandem with or in substitution for any other Award granted
under the Plan or any award granted under any other plan of the Company, any
subsidiary or any business entity to be acquired by the Company or a subsidiary,
or any other right of a Participant to receive payment from the Company or any
subsidiary. Awards granted in addition to or in tandem with other Awards or
awards may be granted either as of the same time as or a different time from the
grant of such other Awards or awards.

     (b) Term of Awards. The term of each Award shall be for such period as may
be determined by the Committee.

     (c) Form of Payment Under Awards. Subject to the terms of the Plan and any
applicable Award Agreement, payments to be made by the Company or a subsidiary
upon the grant, exercise

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or settlement of an Award may be made in such forms as the Committee shall
determine, including, without limitation, cash, Stock, other Awards or other
property, and may be in a single payment or transfer, in installments or on a
deferred basis. Such payments may include, without limitation, provisions for
the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of Dividend Equivalents in respect of
installment or deferred payments denominated in Stock.

     (d) Loan Provisions. With the consent of the Committee, and subject at all
times to, and only to the extent, if any, permitted under and in accordance
with, laws and regulations and other binding obligations or provisions
applicable to the Company, the Company may make, guarantee or arrange for a loan
or loans to a Participant with respect to the exercise of any Option or other
payment in connection with any Award, including the payment by a Participant of
any or all federal, state or local income or other taxes due in connection with
any Award. Subject to such limitations, the Committee shall have full authority
to decide whether to make a loan or loans hereunder and to determine the amount,
terms and provisions of any such loan or loans, including the interest rate to
be charged in respect of any such loan or loans, whether the loan or loans are
to be with or without recourse against the borrower, the terms on which the loan
is to be repaid and conditions, if any, under which the loan or loans may be
forgiven.

     (e) Performance-Based Awards. The Committee may, in its discretion,
designate any Award the exercisability or settlement of which is subject to the
achievement of performance conditions as a performance-based Award subject to
this Section 7(e), in order to qualify such Award as "qualified
performance-based compensation" within the meaning of Code Section 162(m) and
regulations thereunder. The performance objectives of an Award subject to this
Section 7(e) shall consist of one or more business criteria and a targeted level
or levels of performance with respect to such criteria, as specified by the
Committee subject to this Section 7(e). Performance objectives shall be
objective, shall be stated in writing not later than ninety (90) days after the
beginning of the period of service to which they relate, and shall otherwise
meet the requirements of Section 162(m)(4)(C) (or successor provisions) of the
Code and the regulations thereunder. Business criteria used by the Committee in
establishing performance objectives for Awards subject to this Section 7(e)
shall be selected exclusively from among the following:

          (1)  Annual return on capital;

          (2)  Annual earnings per share;

          (3)  Annual cash flow provided by operations;

          (4)  Changes in annual revenues; and/or

          (5)  Strategic business criteria, consisting of one or more objectives
               based on meeting specified revenue, market penetration,
               geographic business expansion goals, cost targets, and goals
               relating to acquisitions or divestitures.

                                       11
<PAGE>   13

The levels of performance required with respect to such business criteria may be
expressed in absolute or relative levels. Achievement of performance objectives
with respect to such Awards shall be measured over a period of not less than one
year nor more than five years, as the Committee may specify. Performance
objectives may differ for such Awards to different Participants. The Committee
shall specify the weight to be given to each performance objective for purposes
of determining the final amount payable with respect to any such Award. The
Committee may, in its discretion, reduce the amount of a payout otherwise to be
made in connection with an Award subject to this Section 7(e), but may not
exercise discretion to increase such amount, and the Committee may consider
other performance criteria in exercising such discretion. All determinations by
the Committee as to the achievement of performance objectives shall be in
writing. The Committee may not delegate any responsibility with respect to an
Award subject to this Section 7(e).

     (f) Acceleration. The Committee may accelerate the exercisability or
vesting of any Award in whole or in part at any time and may provide for the
acceleration of any Award in whole or in part upon the occurrence of certain
events as may be set forth in one or more Award Agreements.

     8. General Provisions.

     (a) Compliance With Laws and Obligations. The Company shall not be
obligated to issue or deliver Stock in connection with any Award or take any
other action under the Plan in a transaction subject to the restriction
requirements of the Securities Act of 1933, as amended, or any other federal or
state securities law, any requirement under any listing agreement between the
Company and any national securities exchange or automated quotation system or
any other law, regulation or contractual obligation of the Company until the
Company is satisfied that such laws, regulations, and other obligations of the
Company have been complied with in full. Certificates representing shares of
Stock issued under the Plan will be subject to such stop-transfer orders and
other restrictions as may be applicable under such laws, regulations and other
obligations of the Company, including any requirement that a legend or legends
be placed thereon.

     (b) Limitations on Transferability. Awards and other rights under the Plan,
including any Award or right which constitutes a derivative security as
generally defined in Rule 16a-1(c) under the Exchange Act, will not be
transferable by a Participant except by will or the laws of descent and
distribution or to a Beneficiary in the event of the Participant's death, and,
if exercisable, shall be exercisable during the lifetime of a Participant only
by such Participant or his guardian or legal representative; provided, however,
that such Awards and other rights may be transferred to one or more transferees
during the lifetime of the Participant, and may be exercised by such transferees
in accordance with the terms of such Award, but only if and to the extent then
permitted under Rule 16b-3, consistent with the registration of the offer and
sale of Stock on Form S-8 or Form S-3 or a successor registration form of the
Securities and Exchange Commission, and permitted by the Committee. Awards and
other rights under the Plan may not be pledged, mortgaged, hypothecated or
otherwise encumbered, and shall not be subject to the claims of creditors.

                                       12
<PAGE>   14

     (c) No Right to Continued Employment or Service. Neither the Plan nor any
action taken hereunder shall be construed as giving any Employee or other person
the right to be retained in the employ or service of the Company or any of its
subsidiaries, nor shall it interfere in any way with the right of the Company or
any of its subsidiaries to terminate any Employee's employment or other person's
service at any time.

     (d) Taxes. The Company and any subsidiary is authorized to withhold from
any Award granted or to be settled, any delivery of Stock in connection with an
Award, any other payment relating to an Award or any payroll or other payment to
a Participant amounts of withholding and other taxes due or potentially payable
in connection with any transaction involving an Award, and to take such other
action as the Committee may deem advisable to enable the Company and
Participants to satisfy obligations for the payment of withholding taxes and
other tax obligations relating to any Award. This authority shall include
authority to withhold or receive Stock or other property and to make cash
payments in respect thereof in satisfaction of a Participant's tax obligations.

     (e) Changes to the Plan and Awards. The Board may amend, alter, suspend,
discontinue or terminate the Plan or the Committee's authority to grant Awards
under the Plan without the consent of stockholders or Participants, except that
any such action shall be subject to the approval of the Company's stockholders
at or before the next annual meeting of stockholders for which the record date
is after such Board action if such stockholder approval is required by any
federal or state law or regulation or the rules of any stock exchange or
automated quotation system on which the Stock may then be listed or quoted, and
the Board may otherwise, in its discretion, determine to submit other such
changes to the Plan to Stockholders for approval; provided, however, that,
without the consent of an affected Participant, no such action may materially
impair the rights of such Participant under any Award theretofore granted to
him. The Committee may waive any conditions or rights under, or amend, alter,
suspend, discontinue, or terminate, any Award theretofore granted and any Award
Agreement relating thereto; provided, however, that, without the consent of an
affected Participant, no such action may materially impair the rights of such
Participant under such Award.

     (f) No Rights to Awards: No Stockholder Rights. No Participant or Employee
shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity or treatment of Participants and Employees. No Award
shall confer on any Participant any of the rights of a stockholder of the
Company unless and until Stock is duly issued or transferred and delivered to
the Participants in accordance with the terms of the Award or, in the case of an
Option, the Option is duly exercised.

     (g) Unfunded Status of Awards: Creation of Trusts. The Plan is intended to
constitute an "unfunded" plan for incentive and deferred compensation. With
respect to any payments not yet made to a Participant pursuant to an Award,
nothing contained in the Plan or any Award shall give any such Participant any
rights that are greater than those of a general creditor of the Company;
provided, however, that the Committee may authorize the creation of trusts or
make other arrangements to meet the Company's obligations under the Plan to
deliver cash, Stock, other

                                       13
<PAGE>   15

Awards, or other property pursuant to any Award, which trusts or other
arrangements shall be consistent with the "unfunded" status of the Plan unless
the Committee otherwise determines with the consent of each affected
Participant.

     (h) Nonexclusivity of the Plan. Neither the adoption of the Plan by the
Board nor its submission to the stockholders of the Company for approval shall
be construed as creating any limitations on the power of the Board to adopt such
other compensatory arrangements as it may deem desirable, including, without
limitation, the granting of stock options otherwise than under the Plan, and
such arrangements may be either applicable generally or only in specific cases.

     (i) No Fractional Shares. No fractional shares of Stock shall be issued or
delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, other Awards, or other property shall be issued or paid in lieu of
such fractional shares or whether such fractional shares or any rights thereto
shall be forfeited or otherwise eliminated.

     (j) Compliance with Code Section 162(m). It is the intent of the Company
that Options, SARs and other Awards designated as Awards subject to Section 7(e)
shall constitute "qualified performance-based compensation" within the meaning
of the Code Section 162(m). Accordingly, if any provision of the Plan or any
Award Agreement relating to such an Award does not comply or is inconsistent
with the requirements of Code Section 162(m), such provision shall be construed
or deemed amended to the extent necessary to conform to such requirements, and
no provision shall be deemed to confer upon the Committee or any other person
discretion to increase the amount of compensation otherwise payable in
connection with any such Award upon attainment of the performance objectives.

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

     (l) Effective Date: Plan Termination. The Plan shall become effective as of
May 1, 1998, and shall continue in effect until the earlier of (i) such time as
the Plan is terminated by the Board or (ii) April 30, 2008. This Plan amends and
restates in its entirety the 1996 Long Term Incentive Plan of the Company.

                                       14<PAGE>   1
                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Agreement") is made and entered into as of
November 20, 1998, by and between Mobility Electronics, Inc., a Delaware
corporation ("Employer"), and RICHARD W. WINTERICH ("Employee").

                              W I T N E S S E T H:

     WHEREAS, Employer desires to employ Employee as provided herein, and
Employee desires to accept such employment; and

     WHEREAS, Employee shall, as an employee of Employer, have access to
confidential information with respect to Employer and its affiliates;

     NOW THEREFORE, for and in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     1. Employment. Employer hereby employs Employee and Employee hereby accepts
employment with Employer upon the terms and conditions hereinafter set forth
with an initial start date of January 1, 1999.

     2. Duties. Subject to the power of the Board of Directors of Employer to
elect and remove officers, Employee shall serve Employer as Vice President and
Chief Financial Officer of Employer, and shall perform, faithfully and
diligently, the services and functions relating to such office or otherwise
reasonably incident to such office as may be designated from time to time by the
Chief Executive Officer of Employer. Employee shall report directly to the Chief
Executive Officer of Employer. Employee shall be based in Scottsdale, Arizona,
but shall travel as required by his duties under this Agreement. Employee shall
devote his full time, attention, energies and business efforts to his duties
hereunder and to the promotion of the business and interests of Employer and its
affiliates.

     3. Term. Unless earlier terminated pursuant to Section 6 below, the term of
this Agreement shall commence as of January 1, 1999. and shall end on December
31, 2001; provided, however, that the term shall automatically renew for an
additional one-year period at the end of the original three-year term and any
additional one-year term, unless either party gives written notice to the other
party, at least ninety (90) days prior to the end of the applicable term, of
such party's termination of this Agreement at the end of the applicable term. As
used herein, "Term"shall mean the original term and any additional renewal
term(s).

     4. Compensation. As compensation for his services rendered under this
Agreement, during the Term Employee shall be entitled to receive the
compensation as provided in Exhibit A

                                                                          Page 1
<PAGE>   2

attached hereto. In addition, Employer shall reimburse Employee (1) for all
reasonable and necessary out-of-pocket travel and other expenses incurred by
Employee in rendering services required under this Agreement, on a monthly basis
upon submission of a detailed monthly statement and reasonable documentation and
(2) for one time out-of-pocket moving cost(s) for household goods and non-equity
Chicago house closing cost(s) (up to a maximum of $60,000) from Chicago to
Scottsdale, Arizona.

     5. Confidentiality.

        (a) Acknowledgment of Proprietary Interest. Employee recognizes the
     proprietary interest of Employer and its affiliates in any Trade Secrets
     (as hereinafter defined) of Employer and its affiliates. Employee
     acknowledges and agrees that any and all Trade Secrets currently known by
     Employee or learned by Employee during the course of his engagement by
     Employer or otherwise, whether developed by Employee alone or in
     conjunction with others or otherwise, shall be and is the property of
     Employer and its affiliates. Employee further acknowledges and understands
     that his disclosure of any Trade Secrets will result in irreparable injury
     and damage to Employer and its affiliates. As used herein, "Trade Secrets"
     means all confidential and proprietary information of Employer and its
     affiliates, now owned or hereafter acquired, including, without limitation,
     information derived from reports, investigations, experiments, research,
     work in progress, drawings, designs, plans, proposals, codes, marketing and
     sales programs, client lists, client mailing lists, financial projections,
     cost summaries, pricing formula, and all other concepts, ideas, materials,
     or information prepared or performed for or by Employer or its affiliates
     and information related to the business, products or sales of Employer or
     its affiliates, or any of their respective customers, other than
     information which is otherwise publicly available.

        (b) Covenant Not-to-Divulge Trade Secrets. Employee acknowledges and
     agrees that Employer and its affiliates are entitled to prevent the
     disclosure of Trade Secrets. As a portion of the consideration for the
     employment of Employee and for the compensation being paid to Employee by
     Employer, Employee agrees at all times during the Term and thereafter to
     hold in strict confidence and not to disclose or allow to be disclosed to
     any person, firm or corporation, other than to persons engaged by Employer
     and its affiliates to further the business of Employer and its affiliates,
     and not to use except in the pursuit of the business of Employer and its
     affiliates, the Trade Secrets, without the prior written consent of
     Employer, including Trade Secrets developed by Employee.

        (c) Return of Materials at Termination. In the event of any termination
     or cessation of his employment with Employer for any reason whatsoever,
     Employee will promptly deliver to Employer all documents, data and other
     information pertaining to Trade Secrets. Employee shall not retain any
     documents or other information, or any reproduction or excerpt thereof,
     containing or pertaining to any Trade Secrets.

                                                                          Page 2
<PAGE>   3

        (d) Competition During Employment. Employee agrees that during the Term,
     neither he, nor any of his affiliates, will directly or indirectly: (i)
     compete with Employer or its affiliates in the portable or handheld
     computer power, docking, and connectivity business, which is defined as
     product lines or businesses that are competitive with products that are
     manufactured, marketed or sold by Employer and its affiliates during the
     Term or under development during the Term (the "Business"); or (ii) act as
     an officer, director, employee, consultant, shareholder, lender, or agent
     of any entity which is in competition with Employer; provided, however,
     that this Section 5(d) shall not prohibit Employee or any of his affiliates
     from purchasing or holding an aggregate equity interest of up to 1% in any
     publicly-traded company which is in competition with Employer. Furthermore,
     Employee agrees that during the Term, he will undertake no planning for the
     organization of any business activity competitive with the Business and
     Employee will not combine or conspire with any other employees of Employer
     and its affiliates for the purpose of the organization of any such
     competitive business activity.

        (e) Competition Following Employment. Employee agrees that for a period
     of one-year after the termination or cessation of his employment for
     Employer for any reason whatsoever, neither he, nor any of his affiliates,
     will directly or indirectly: (i) compete with Employer or its affiliates in
     the Business; (ii) act as an officer, director, employee, consultant,
     shareholder, tender, or agent of any entity which is in competition with
     Employer; or (iii) undertake or plan for the organization of any business
     activity in competition with Employer and Employee will not combine or
     conspire with any other employees of Employer or its affiliates for the
     purpose of the organization of any such competitive business activity;
     provided, however, that this Section 5(e) shall not prohibit Employee or
     any of his affiliates from purchasing or holding an aggregate equity
     interest of up to 1% in any publicly-traded company which is in competition
     with Employer.

     6. Termination. This Agreement and the employment relationship created
hereby shall terminate upon the occurrence of any of the following events (each,
a "Termination Event"):

        (a) The expiration of the Term;

        (b) The death of Employee;

        (c) The excessive absence (as hereinafter defined) of Employee;

        (d) Written notice to Employee from Employer of termination for "just
     cause" (as hereinafter defined);

        (e) Written notice to Employee from Employer of termination for any
     reason other than (a), (b), (c), and (d) above in this subsection; or

        (f) Termination by Employee for any reason.

                                                                          Page 3
<PAGE>   4

         In the event of the termination of Employee's employment pursuant to
(a), (b), (c), (d) or (f), then Employee shall be entitled to only the
compensation earned by Employee as of, and payable for the period prior to, the
date of such Termination Event. In the event of the termination of Employee's
employment pursuant to (e) above, the Employee shall (i) continue to receive the
salary, provided in Exhibit A for a period of seven (7) months following the
date of termination. Notwithstanding anything to the contrary in this Agreement,
the provisions of Section 5 above shall survive any termination, for whatever
reason, of Employee's employment under this Agreement.

         For purposes of this Section 6 the following terms of the following
meanings:

          "excessive absence" of Employee shall mean his inability, for whatever
     reason, to perform his duties under this Agreement for a continuous period
     of 60 days or for 120 days out of a continuous period of 240 days.

          "just cause" shall mean (a) conviction of a felony or commission of
     any act of fraud, moral turpitude or dishonesty, (b) an intentional,
     material violation of a statutory or fiduciary duty not corrected within
     ten days after notice from Employer, (c) any material breach by Employee of
     any of the terms or conditions of, or the failure to perform any material
     covenant contained in, this Agreement and Employee does not cure such
     breach or failure within ten days following notice from Employer; provided,
     however, that Employee will not be entitled to cure any breach or failure
     under this subclause (c) more than one time in any consecutive three (3)
     month period, or (d) the violation by Employee of reasonable instructions
     or policies established by Employer with respect to the operation of its
     business and affairs or Employee's failure to carry out the reasonable
     instructions of the Chief Executive Officer, or Board of Directors of
     Employer and following notice thereof from Employer to Employee, Employee
     does not cure any such violation or failure within ten days following
     notice from Employer; provided, however, that Employee will not be entitled
     to cure any breach or failure under this subclause (d) more than one time
     in any consecutive three (3) month period.

     7. Remedies. Employee recognizes and acknowledges that in the event of any
default in, or breach of any of, the terms, conditions or provisions of this
Agreement (either actual or threatened) by Employee, Employer's and its
affiliates remedies at law shall be inadequate. Accordingly, Employee agrees
that in such event, Employer and its affiliates shall have the right of specific
performance and/or injunctive relief in addition to any and all other remedies
and rights at law, in equity or provided herein, and such rights and remedies
shall be cumulative.

     8. Acknowledgments. Employee acknowledges and recognizes that the
enforcement of any of the provisions set forth in Section 5 above by Employer
and its affiliates will not interfere with Employee's ability to pursue a proper
livelihood. Employee recognizes and agrees that the enforcement of this
Agreement is necessary to ensure the preservation and continuity of the business
and good will of Employer and its affiliates.

                                                                          Page 4
<PAGE>   5

     9. Notices. Any notices, consents, demands, requests, approvals and other
communications to be given under this Agreement by either party to the other
shall be deemed to have been duly given if given in writing and personally
delivered or sent by facsimile transmission, courier service, overnight delivery
service or by mail, registered or certified, postage prepaid with return receipt
requested, as follows:

         If to Employer:           Mobility Electronics, Inc.
                                   7955 E. Redfield Road
                                   Scottsdale, AZ 85260
                                   Attn: Charles R. Mollo
                                   Fax: (602) 596-0349

         with a copy to:           Richard F. Dahlson, Esq.
                                   Jackson Walker L.L.P.
                                   901 Main Street, Suite 6000
                                   Dallas, Texas 75202
                                   Fax: (214) 953-5822

         If to Employee:           Richard W. Winterich
                                   Mobility Electronics, Inc.
                                   15990 Greenway-Hayden Loop, Suite 500
                                   Scottsdale, AZ 85260
                                   Fax: (602)609-8768

Notices delivered personally or by facsimile transmission, courier service or
overnight delivery shall be deemed communicated as of actual receipt; mailed
notices shall be deemed communicated as of three days after the date of mailing.

     10. Entire Agreement. This Agreement contains the entire agreement of the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, oral or written between the parties hereto
with respect to the subject matter hereof. No modification or amendment of any
of the terms, conditions or provisions herein may be made otherwise than by
written agreement signed by the parties hereto.

     11. Governing Law and Venue. THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE INTERPRETED, CONSTRUED, AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF ARIZONA, WITHOUT REGARD TO ITS CHOICE OF LAW PRINCIPLES.

     12. Parties Bound. This Agreement and the rights and obligations hereunder
shall be binding upon and inure to the benefit of Employer and Employee, and
their respective heirs, personal representatives, successors and assigns.
Employer shall have the right to assign this Agreement to any affiliate or to
its successors or assigns. The terms "successors" and "assigns" shall include
any

                                                                          Page 5
<PAGE>   6

person, corporation, partnership or other entity that buys all or substantially
all of Employer's assets or all of its stock, or with which Employer merges or
consolidates. The rights, duties or benefits to Employee hereunder are personal
to him, and no such right or benefit may be assigned by him. The parties hereto
acknowledge and agree that Employer's affiliates are third-party beneficiaries
of the covenants and agreements of Employee set forth in Section 5 above.

     13. Estate. If Employee dies prior to the payment of all sums owed, or to
be owed, to Employee pursuant to Section 4 above, then such sums, as they become
due, shall be paid to Employee's estate.

     14. Enforceability. If, for any reason, any provision contained in this
Agreement should be held invalid in part by a court of competent jurisdiction,
then it is the intent of each of the parties hereto that the balance of this
Agreement be enforced to the fullest extent permitted by applicable law.
Accordingly, should a court of competent jurisdiction determine that the scope
of any covenant is too broad to be enforced as written, it is the intent of each
of the parties that the court should reform such covenant to such narrower scope
as it determines enforceable.

     15. Waiver of Breach. The waiver by any party hereto of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach by any party.

     16. Captions. The captions in this Agreement are for convenience of
reference only and shall not limit or otherwise affect any of the terms or
provisions hereof.

     17. Costs. If any action at law or in equity is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorneys' fees, costs and necessary disbursements in addition to any
other relief to which he or it may be entitled.

     18. Other Obligations. Employee represents and warrants that he is not
subject to any agreement which would be violated or breached as a direct or
indirect result of Employee executing this Agreement or Employee becoming an
employee of Employer.

     19. Affiliate. An "affiliate" of any party hereto shall mean any person
controlling, controlled by or under common control with such party.

     20. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same instrument, but only one of which need be produced.

                                                                          Page 6
<PAGE>   7

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

                                       MOBILITY ELECTRONICS, INC.

                                       By:      /s/ CHARLES R. MOLLO
                                                --------------------------
                                                Charles R. Mollo,
                                                Chief Executive Officer

                                                /s/ RICHARD W. WINTERICH
                                                -------------------------
                                                Richard W. Winterich

                                                                          Page 7

<PAGE>   8

                                    EXHIBIT A

1.   Annual Salary: Annual Salary will be at the rate of $185,000 per year,
     subject to increase at the discretion of the Board of Directors of
     Employer. The Annual Salary shall be payable bi-weekly.

2.   Bonuses: Employee shall be entitled to receive an annual calender year
     bonus target of 25% of Employee's Annual Salary, with additional upside
     thereafter, pursuant to Employer's annual bonus plan (pro rated for partial
     years).

3.   Benefits: Employee shall be entitled to receive such group benefits as
     Employer may provide to its other employees at comparable salaries and
     responsibilities to those of Employee, which shall specifically include
     three weeks of paid vacation per calendar year (pro rated for partial
     years).

4.   Stock Options:

     -    Employee will be granted an option to purchase 100,000 shares of
          Common Stock under Employer's 1996 Long Term Incentive Plan (the
          "Plan"), which options shall: (i) be granted at the lower of
          $5.75/share or the price of other options issued pursuant to the plan
          before June 30, 1999. (ii) provide for equal annual vesting of 33% per
          year for three years; (iii) provide for full vesting in the event of a
          Change In Control; and (iv) contain such other terms and conditions as
          are contained in Employer's standard form stock option agreement under
          the Plan.

     -    Employee will be granted an additional option to purchase an
          additional 30,000 shares of Common Stock (to be vested over the three
          year term of this agreement) under the Plan and, on other terms and
          conditions described above, subject to Mobility's consummation of an
          IPO, sale, or merger prior to March 31, 2001.

     -    A "Change In Control" shall be deemed to have occurred for purposes
          hereof (i) when a change of stock ownership of Employer of a nature
          that would be required to be reported in response to Item 6(e) of
          Schedule 14A promulgated under the Securities Exchange Act of 1934, as
          amended (the "Exchange Act"), and any successor item of a similar
          nature has occurred; or (ii) upon the acquisition of beneficial
          ownership, directly or indirectly, by any person (as such term is used
          in Sections 13(d) and 14(d)(2) of the Exchange Act) of securities of
          Employer representing 50% or more of the combined voting power of
          Employer's then outstanding securities; provided that a Change In
          Control will not be deemed to have occurred for purposes hereof with
          respect to any person meeting the requirements of clauses (i) and (ii)
          of Rule 13d-1 (b)(1) promulgated under the Exchange Act.

5.   Stock Purchase

     -    Employee will be permitted to purchase, within sixty days of the
          execution of this agreement, 30,000 shares of Common Stock at a price
          per share of $5.75.

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