Document:

remote10_2.htm

    
      Exhibit
        10.2

       

      PLACEMENT
        AGENT AND ADVISORY

      SERVICES
        AGREEMENT

      

      This
        Placement Agent and Advisory Services Agreement (this "Agreement") is
        made as of May _, 2007 (the “Effective Date”), by and between Remote
        Dynamics, Inc., a Delaware corporation (together with its subsidiaries, the
        "Company"), and Monarch Bay Associates, LLC, a California limited
        liability company ("MBA").  MBA and the Company agree as
        follows:

      

      
        	
                 

              	
                1.

              	
                Engagement
                  of MBA:  The Company hereby engages MBA, and MBA
                  hereby accepts such engagement, to act
                  as:

              

      

      

      
        	
                 

              	
                (a)   the
                  Company's placement agent on an exclusive basis with respect to
                  finding
                  investors (the “Investors”) for an offering of the Company’s capital stock
                  in a transaction or transactions exempt from registration under
                  the
                  Securities Act of 1933, as amended, and in compliance with the
                  applicable
                  laws and regulations of any jurisdiction in which securities are
                  sold
                  under this Agreement (a “Private Placement”);
                  and

              

      

      

      
        	
                 

              	
                (b)
                  the Company’s advisor, on an exclusive basis, in identifying and
                  introducing prospective parties to an acquisition, merger, joint
                  venture
                  or any other similar transaction or relationship, directly or indirectly,
                  involving the Company (a
“Transaction”).

              

      

      

      The
        Company acknowledges and agrees that MBA's obligations hereunder are on a
        reasonable best efforts basis only and that the execution of this Agreement
        does
        not constitute a commitment by MBA to purchase the securities and does not
        ensure the successful placement of the securities or any portion thereof
        or the
        success of MBA with respect to securing any other financing or a Transaction
        on
        behalf of the Company.  MBA will act solely as a broker with respect
        to identifying and negotiating with potential investors in securities that
        may
        be issued in the Private Placement and potential parties to a Transaction.
        MBA
        will not act as an underwriter in any Private Placement or
        Transaction.

      

      
        	
                2.

              	
                MBA's
                  Compensation:  The Company hereby agrees to pay MBA
                  fees in such amount and upon such terms and conditions contained
                  herein
                  upon the successful completion of a Private Placement as
                  follows:

              

      

      

      
        	
                 

              	
                (a)
                  Success Fees.  The Company will pay MBA a
                  Success Fee, as described below, when the Company closes on a Private
                  Placement or a Transaction during the Term (as hereinafter defined)
                  of
                  this Agreement or during a one-year period thereafter, so long
                  as any
                  purchasers of the Company’s capital stock or parties to a Transaction were
                  identified by or introduced to the Company by MBA (or are affiliates
                  of
                  any person so identified or
                  introduced).

              

      

      

      Computation
        and Payment of Success Fees.

      

      (i)  Private
        Placements.  For each Private Placement, the Success Fee will be
        (x) a cash fee equal to 9% of gross proceeds raised in the Private Placement
        (including, without limitation, upon exercise of any warrants issued in Private
        Placement) and (y) warrants (the “MBA Warrants”) to purchase 9% of the
        total number of shares of common stock issued and issuable by the Company
        to
        Investors under and in connection with the Private Placement, including (without
        limitation) shares issuable upon conversion or exercise of the securities
        sold
        in the Private Placement, at an exercise price equal to the purchase price
        of
        the common stock sold in the Private Placement or, in the event that securities
        convertible into common stock are sold in the Private Placement, the conversion
        price of such securities.

       

       

      
        
           

        

        
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      The
        cash
        portion of the Success Fee will be due and payable upon the closing of each
        Private Placement and will be payable directly to MBA from the escrow
        established for such closing or in such other manner as may be acceptable
        to
        MBA.

      

      MBA
        Warrants will have a five (5) year term (or such longer term as is provided
        in
        any warrants issued in the Private Placement) and will provide for cashless
        exercise (even if the Investors do not have such a right).  MBA
        Warrants will have the benefit of full ratchet anti-dilution protection against
        issuances of securities at prices (or with conversion or exercise prices,
        in the
        case of convertible securities, warrants, options or rights) below the exercise
        price of MBA Warrants. MBA Warrants will not be callable or redeemable. The
        shares underlying MBA Warrants will be included in the first registration
        statement filed by the Company covering the securities issued in the Private
        Placement (or securities issuable upon conversion or exercise
        thereof).  MBA Warrants will be transferable within MBA’s
        organization, at MBA’s discretion.  MBA Warrants will contain such
        other terms and conditions no less favorable to MBA than the term and conditions
        of any warrants issued to the Investors in the Private Placement.

      

      (ii)  Transactions.  For
        each Transaction, the Success Fee will be a cash fee equal to 3% of the Total
        Consideration (as defined below) with respect to such Transaction.  As
        used herein. “Total Consideration" means, with respect to any
        Transaction, the total value of all cash, securities, or other property paid
        or
        received, directly or indirectly, by the Company or its owners (at closing
        or in
        the future) in connection with such Transaction, including (without limitation)
        in respect of (i) the assumption (by contract, operation of law or otherwise)
        of
        any indebtedness or (ii) consulting, non-compete or similar
        agreements.

      

      The
        Success Fee will be due and payable upon the closing of each Transaction
        and
        will be payable directly to MBA from the escrow established for such closing
        or
        in such other manner as may be acceptable to MBA; provided that in the
        case of any installment or contingent payment made in respect of the
        Transaction, the Success Fee in respect of such installment or contingent
        payment shall be due and payable on the date such payment is made.

      

      

      
        	
                3.  

              	
                Certain
                  Matters Relating to MBA’s
                  Duties:

              

      

      

      
        	
                (a)  

              	
                MBA
                  shall (i) assist the Company in the preparation
                  of   information documents to be shared with potential
                  Investors and parties to Transactions (ii) identify and screen
                  potential
                  Investors and parties to Transactions, and (iii) perform other
                  related
                  duties.

              

      

       

       

      
        
           

        

        
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                (b)  

              	
                MBA
                  shall perform its duties under this Agreement in a manner consistent
                  with
                  the instructions of the Company. Such performance shall include
                  the
                  delivery of information to potential interested parties, conducting
                  due
                  diligence, and leading discussions with potential Investors and
                  parties to
                  Transactions.

              

      

      

      
        	
                (c)  

              	
                MBA
                  shall not engage in any form of general solicitation or advertising
                  in
                  performing its duties under this Agreement. This prohibition includes,
                  but
                  is not limited to, any mass mailing, any advertisement, article
                  or notice
                  published in any magazine, newspaper or newsletter and any seminar
                  or
                  meeting where the attendees have been invited by any mass mailing,
                  general
                  solicitation or advertising.

              

      

      

      
        	
                (d)  

              	
                MBA
                  is and will hereafter act as an independent contractor and not
                  as an
                  employee of the Company and nothing in this Agreement shall be
                  interpreted
                  or construed to create any employment, partnership, joint venture,
                  or
                  other relationship between MBA and the Company. MBA will not hold
                  itself
                  out as having, and will not state to any person that MBA has, any
                  relationship with the Company other than as an independent contractor.
                  MBA
                  shall have no right or power to find or create any liability or
                  obligation
                  for or in the name of the Company or to sign any documents on behalf
                  of
                  the Company.

              

      

      

      
        	
                4.  

              	
                Certain
                  Matters Relating to Company’s
                  Duties:

              

      

      

      
        	
                 

              	
                (a)

              	
                The
                  Company shall promptly provide MBA with all relevant information
                  about the
                  Company (to the extent available to the Company in the case of
                  parties
                  other than the Company) that shall be reasonably requested or required
                  by
                  MBA, which information shall be complete and accurate in all material
                  respects at the time furnished.

              

      

      

      
        	
                 

              	
                (b)

              	
                The
                  Company recognizes that in order for MBA to perform properly its
                  obligations in a professional manner, it is necessary that MBA
                  be informed
                  of and, to the extent practicable, participate in meetings and
                  discussions
                  between the Company and any third party, including, without limitation,
                  any prospective purchaser of the Company’s securities, relating to the
                  matters covered by the terms of MBA's
                  engagement.

              

      

      

      
        	
                 

              	
                (c)

              	
                The
                  Company agrees that any report or opinion, oral or written, delivered
                  to
                  it by MBA is prepared solely for its confidential use and shall
                  not be
                  reproduced, summarized, or referred to in any public document or
                  given or
                  otherwise divulged to any other person without MBA's prior written
                  consent, except as may be required by applicable law or
                  regulation.

              

      

      

      
        	
                 

              	
                (d)

              	
                The
                  Company represents and warrants that: (i) it has full right, power
                  and
                  authority to enter into this Agreement and to perform all of its
                  obligations hereunder; (ii) this Agreement has been duly authorized
                  and
                  executed by and constitutes a valid and binding agreement of the
                  Company
                  enforceable in accordance with its terms; and (iii) the execution
                  and
                  delivery of this Agreement and the consummation of the transactions
                  contemplated hereby do not conflict with or result in a breach
                  of the
                  Company's certificate of incorporation or by-laws. Further, this
                  Agreement
                  and the transactions contemplated herein shall not conflict with
                  or result
                  in the breach of any agreement to which the Company is a party
                  at the time
                  the transactions contemplated herein are
                  consummated.

              

      

       

      
 

      
        
           

        

        
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                5.  

              	
                Term;
                  Termination of Agreement. The term of this Agreement shall
                  commence on the Effective Date and shall expire one year thereafter
                  unless
                  terminated earlier pursuant to the terms of this paragraph (the
                  “Term”).  Either party may terminate this Agreement prior to its
                  expiration by notifying the other party in writing upon a material
                  breach
                  by that other party, unless such breach is curable and is in fact
                  cured
                  within fifteen (15) days after such
                  notice.    Notwithstanding the foregoing, all
                  provisions of this Agreement (including Exhibit A hereto) other
                  than
                  Sections 1, 3 and 4 (a) and (b) shall survive the termination or
                  expiration of this Agreement.  MBA shall be entitled to
                  compensation under Section 2 (and payment for non-accountable expenses
                  under Section 12) based on the completion of a Private Placement
                  or a
                  Transaction prior to the termination or expiration of this Agreement
                  or
                  during the period one year following termination so long as any
                  Investors
                  or party to a Transaction, as the case may be, (or any affiliate
                  of any
                  such person or entity) were identified by or introduced to the
                  Company by
                  MBA.  MBA will provide to the Company within ten business days
                  after the expiration or termination of this Agreement a list of
                  all
                  persons or entities identified by or introduced to the Company
                  by MBA
                  pursuant to this Agreement (the “Introduction List”).  Within
                  five business day following the delivery of the Introduction List
                  to the
                  Company, the Company will provide MBA with written notice of any
                  objections to the inclusion of any person or entity in the Introduction
                  List and state the basis for each objection in reasonable
                  detail.   The inclusion of a person or entity in the
                  Introduction List shall be deemed conclusive in making a later
                  determination as to whether a Success Fee is payable hereunder,
                  unless the
                  Company shall have made a timely and proper objection.  The
                  parties will cooperate to resolve the status of any person or entity
                  as to
                  which the Company shall have made a timely and proper
                  objection.

              

      

      

      Except
        as
        otherwise specifically provided for herein, the Company shall have no liability
        to MBA should the Company terminate this Agreement prior to the completion
        of a
        Private Placement or a Transaction.

      

      
        	
                6.  

              	
                Indemnification.  The
                  indemnification provisions set forth in Exhibit A hereto are incorporated
                  by reference and are a part of this
                  Agreement.

              

      

      

      
        	
                7.  

              	
                Notices.
                  Any notice, consent, authorization or other communication to be
                  given
                  hereunder shall be in writing and shall be deemed duly given and
                  received
                  when delivered personally, when transmitted by fax during the normal
                  business hours of the party receiving such notice so long a copy
                  of that
                  notice is also send by certified mail, return receipt requested
                  at the
                  time it is transmitted by fax,  five business  days
                  after being mailed by certified mail, return receipt requested
                  or one
                  business day after being sent by a nationally recognized overnight
                  delivery service, charges and postage prepaid, properly addressed
                  to the
                  party to receive such notice, at the following address or fax number
                  for
                  such party (or at such other address or fax number as shall hereafter
                  be
                  specified by such party by like
                  notice):

              

      

       

      
 

      
        
           

        

        
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      (a)           If
        to the Company, to:

      

      Remote
        Dynamics, Inc.

      ATTN:
        Chief Executive Officer

      1155
        Kas
        Drive, Suite 100

      Richardson,
        Texas 75081

      Telephone
        Number:

      Fax
        Number:

      E-mail:                      

      

      (b)           If
        to MBA, to:

      

      David
        Walters, Managing Director

      Monarch
        Bay Associates, LLC

      30950
        Rancho Viejo Rd #120

      San
        Juan
        Capistrano, California 92675

      Telephone
        Number:       (949) 260-0150

      Fax
        Number:                    (815)
        301-8756

      E-mail:

      

      
        	
                8.  

              	
                Company
                  to Control Transactions.  The
                  terms and conditions under which the Company would enter into a
                  Private
                  Placement or a Transaction shall be at the sole discretion of the
                  Company.  Nothing in this Agreement shall obligate the Company
                  to actually consummate a Private Placement or a
                  Transaction.  The Company may terminate any negotiations or
                  discussions at any time and reserves the right not to proceed with
                  a
                  Private Placement or a Transaction.

              

      

      

      
        	
                9.  

              	
                Confidentiality
                  of Company Information. MBA, and its officers, directors,
                  employees and agents shall maintain in strict confidence and not
                  copy,
                  disclose or transfer to any other party (1) all confidential business
                  and
                  financial information regarding the Company and its affiliates,
                  including
                  without limitation, projections, business plans, marketing plans,
                  product
                  development plans, pricing, costs, customer, vendor and supplier
                  lists and
                  identification, channels of distribution, and terms of identification
                  of
                  proposed or actual contracts and (2) all confidential technology
                  of the
                  Company. In furtherance of the foregoing, MBA agrees that it shall
                  not
                  transfer, transmit, distribute, download or communicate, in any
                  electronic, digitized or other form or media, any of the confidential
                  technology of the Company. The foregoing is not intended to preclude
                  MBA
                  from utilizing, subject to the terms and conditions of this Agreement,
                  the
                  Private Placement or Offering Memorandum and/or other documents
                  prepared
                  or approved by the Company.  Further, the Company must approve
                  the Private Placement or Offering Memorandum, being prepared by
                  MBA,
                  before it is mailed to prospective Investors or parties to a
                  Transaction.

              

      

      

      All
        communications regarding any possible transactions, requests for due diligence
        or other information, requests for facility tours, product demonstrations
        or
        management meetings, will be submitted or directed to the Company, and MBA
        shall
        not contact any employees, customers, suppliers or contractors of the Company
        or
        its affiliates without express permission.  Nothing in this Agreement
        shall constitute a grant of authority to MBA or any representatives thereof
        to
        remove, examine or copy any particular document or types of information
        regarding the Company, and the Company shall retain control over the particular
        documents or items to be provided, examined or copied. If a Private Placement
        or
        a Transaction is not consummated, or if at any time the Company so requests,
        MBA
        and its representatives will return to the Company all copies of information
        regarding the Company in their possession.

      

      The
        provisions of this Section shall survive any termination of this
        Agreement.

      

      
        
           

        

        
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                10.  

              	
                Press
                  Releases, Etc.  The Company shall control all press
                  releases or announcements to the public, the media or the industry
                  regarding any Private Placement, Transaction or business relationship
                  involving the Company or its affiliates.  Except for
                  communication to Investors in furtherance of this Agreement, MBA
                  will not
                  disclose the fact that discussions or negotiations are taking place
                  concerning a possible Private Placement or a Transaction involving
                  the
                  Company, or the status or terms and conditions
                  thereof.

              

      

      

      
        	
                11.  

              	
                Due
                  Diligence: Neither the Company, nor any of
                  its directors, officers or stockholders, should, in any way rely
                  on MBA to
                  perform any due diligence with respect to the Company.  It is
                  expressly understood and agreed that the Investors and parties
                  to any
                  Transaction will conduct their own due diligence on the Company
                  and the
                  opportunity.

              

      

      

      
        	
                12.  

              	
                Expenses,
                  Etc. The Company will pay to MBA a non-accountable expense
                  fee equal to 2% of gross proceeds raised in each Private Placement
                  (the
                  “Non-Accountable Fee”), which will be used to pay MBA’s travel and other
                  expenses.  The Non-Accountable Fee will be paid in the same time
                  and manner as the Success Fee.    The Company will pay
                  all other costs and expenses incident to the issuance, offer, sale
                  and
                  delivery of each Private Placement, including but are not limited
                  to state
                  “Blue Sky” fees, legal fees, printing costs, travel costs, mailing,
                  couriers, and personal background
                  checks.

              

      

      

      
        	
                13.  

              	
                Compliance
                  with Laws.  MBA represents and warrants that it
                  shall conduct itself in compliance with applicable federal and
                  state
                  laws.  MBA represents that it is not a party to any other
                  Agreement, which would conflict with or interfere with the terms
                  and
                  conditions of this Agreement.

              

      

      

      
        	
                14.  

              	
                Assignment
                  Permissable.  MBA reserves the right to assign a
                  portion of this Agreement to one or more sub-agents with respect
                  to any
                  Private Placement or Transaction, subject to the prior written
                  consent of
                  the Company.  Any approved sub-agent shall be paid a portion of
                  Success Fees as may be determined by MBA.    The
                  Company does acknowledge that MBA may pay other consultants or
                  agents in
                  connection with the Private Placement(s) and
                  Transaction(s).

              

      

      

      
        	
                15.  

              	
                Amendments.  Neither
                  party may amend this Agreement or rescind any of its existing provisions
                  without the prior written consent of the other
                  party.

              

      

      

      
        
           

        

        
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                16.  

              	
                Governing
                  Law; Dispute Resolution.  This Agreement shall be
                  deemed to have been made in the State of California and shall be
                  construed, and the rights and liabilities determined, in accordance
                  with
                  the law of the State of California, without regard to the conflicts
                  of
                  laws rules of such jurisdiction. Any controversy or claim relating
                  to or
                  arising from this Agreement (an "Arbitrable Dispute") shall be
                  settled by
                  arbitration in accordance with the Commercial Arbitration Rules
                  of the
                  American Arbitration Association (the "AAA") as such rules may
                  be modified
                  herein or as otherwise agreed by the parties in controversy. The
                  forum for
                  arbitration shall be Orange County, California. Following thirty
                  (30) days
                  notice by any party of intention to invoke arbitration, any Arbitrable
                  Dispute arising under this Agreement and not mutually resolved
                  within such
                  thirty (30) day period shall be determined by a single arbitrator
                  upon
                  which the parties agree.

              

      

      

      
        	
                17.  

              	
                Waiver.  Neither
                  MBA’s nor the Company’s failure to insist at any time upon strict
                  compliance with this Agreement or any of its terms nor any continued
                  course of such conduct on their part shall constitute or be considered
                  a
                  waiver by MBA or the Company of any of their respective rights
                  or
                  privileges under this Agreement.

              

      

      

      
        	
                18.  

              	
                Severability.
                  If any provision herein is or should become inconsistent with any
                  present
                  or future law, rule or regulation of any sovereign government or
                  regulatory body having jurisdiction over the subject matter of
                  this
                  Agreement, such provision shall be deemed to be rescinded or modified
                  in
                  accordance with such law, rule or regulation.  In all other
                  respects, this Agreement shall continue to remain in full force
                  and
                  effect.

              

      

      

      
        	
                19.  

              	
                Counterparts.
                  This Agreement may be executed in two or more counterparts, each
                  of which
                  shall be deemed an original, and will become effective and binding
                  upon
                  the parties at such time as all of the signatories hereto have
                  signed a
                  counterpart of this Agreement.  All counterparts so executed
                  shall constitute one Agreement binding on all of the parties hereto,
                  notwithstanding that all of the parties are not signatory to the
                  same
                  counterpart.  Each of the parties hereto shall sign a sufficient
                  number of counterparts so that each party will receive a fully
                  executed
                  original of this Agreement.

              

      

      

      
        
           

        

        
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                20.  

              	
                Entire
                  Agreement.  This Agreement (together with Exhibit A
                  hereto) constitutes the entire agreement between the Company and
                  MBA. No
                  other agreements, cove­nants, representations or warranties, express
                  or implied, oral or written, have been made by any party hereto
                  to any
                  other party concerning the subject matter hereof.  All prior and
                  contemporaneous conversations, negotiations, possible and alleged
                  agreements, representations, covenants and warranties concerning
                  the
                  subject matter hereof are merged herein and shall be of no further
                  force
                  or effect.

              

      

      

      

      

      

      

      
        
          
            	 	 Monarch
                    Bay Associates, LLC (the “MBA”)
	 	 
	 	 /S/
                    Keith Moore
	
                     By:

                  	 Keith
                    Moore
	
                     Title:

                  	 Managing
                    Director
	 	 
	 	 
	 	 Remote
                    Dynamics, Inc. (the “Company”)
	 	 
	
                     By: 

                  	 /S/
                    David
                    Walters
	 	 David
                    Walters
	
                     Title: 

                  	 Chairman

          

        

      

       

      

      

       

      

      
        
           

        

        
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      EXHIBIT
        A

      Indemnification

      

      The
        Company agrees that it shall
        indemnify and hold harmless, MBA, its stockholders, members directors, officers,
        employees, agents, affiliates and controlling persons within the meaning
        of
        Section 20 of the Securities Exchange Act of 1934 and Section 15 of the
        Securities Act of 1933, each as amended (any and all of whom are referred
        to as
        an "Indemnified Party"), from and against any and all losses, claims, damages,
        liabilities, or expenses, and all actions in respect thereof (including,
        but not
        limited to, all legal or other expenses reasonably incurred by an Indemnified
        Party in connection with the investigation, preparation, defense or settlement
        of any claim, action or proceeding, whether or not resulting in any liability),
        incurred by an Indemnified Party with respect to, caused by, or otherwise
        arising out of any transaction contemplated by this Agreement or MBA's
        performing the services contemplated hereunder; provided, however, the Company
        will not be liable to the extent, and only to the extent, that any loss,
        claim,
        damage, liability or expense is finally judicially determined to have resulted
        primarily from MBA's gross negligence or bad faith in performing such
        services.

      

      If
        the indemnification provided for
        herein is conclusively determined (by an entry of final judgment by a court
        of
        competent jurisdiction and the expiration of the time or denial of the right
        to
        appeal) to be unavailable or insufficient to hold any Indemnified Party harmless
        in respect to any losses, claims, damages, liabilities or expenses referred
        to
        herein, then the Company shall contribute to the amounts paid or payable
        by such
        Indemnified Party in such proportion as is appropriate and equitable under
        all
        circumstances taking into account the relative benefits received by the Company
        on the one hand and MBA on the other, from the transaction or proposed
        transaction under the Agreement or, if allocation on that basis is not permitted
        under applicable law, in such proportion as is appropriate to reflect not
        only
        the relative benefits received by the Company on the one hand and MBA on
        the
        other, but also the relative fault of the Company and MBA; provided, however,
        in
        no event shall the aggregate contribution of MBA and/or any Indemnified Party
        be
        in excess of the net compensation actually received by MBA and/or such
        Indemnified Party pursuant to this Agreement.

      

                    The
        Company shall not settle or compromise or consent to the entry of any judgment
        in or otherwise seek to terminate any pending or threatened action, claim,
        suit
        or proceeding in which any Indemnified Party is or could be a party and as
        to
        which indemnification or contribution could have been sought by such Indemnified
        Party hereunder (whether or not such Indemnified Party is a party thereto),
        unless such consent or termination includes an express unconditional release
        of
        such Indemnified Party, reasonably satisfactory in form and substance to
        such
        Indemnified Party, from all losses, claims, damages, liabilities or expenses
        arising out of such action, claim, suit or proceeding.

      

                    In
        the event any Indemnified Party shall incur any expenses covered by this
        Exhibit
        A, the Company shall reimburse the Indemnified Party for such covered expenses
        within ten (10) business days of the Indemnified Party's delivery to the
        Company
        of an invoice therefor, with receipts attached. Such obligation of the Company
        to so advance funds may be conditioned upon the Company's receipt of a written
        undertaking from the Indemnified Party to repay such amounts within ten (10)
        business days after a final, non-appealable judicial determination that such
        Indemnified Party was not entitled to indemnification hereunder.

       

       

      
 

      
        
           

        

        
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                    The
        foregoing indemnification and contribution provisions are not in lieu of,
        but in
        addition to, any rights which any Indemnified Party may have at common law
        hereunder or otherwise, and shall remain in full force and effect following
        the
        expiration or termination of MBA's engagement and shall be binding on any
        successors or assigns of the Company and successors or assigns to all or
        substantially all of the Company's business or assets.

      
 

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
          Page
            10 of
            10remote10_3.htm

    Exhibit
      10.3

    

    Addendum
      No. 1 to Promissory Note

    

    Reference
      is made to the Promissory Note (the “November Date”), dated as of November 30,
      2006, by and between Remote Dynamics, Inc. a Delaware corporation, (the
“Company”) and HFS MINORPLANET FUNDING, LLC (the
“Borrower”).  Capitalized terms used, but not defined, herein have the
      respective meanings set forth in the November Note.

    

    This
      letter agreement confirms the understanding and agreement between the Company
      and the lender that the November Note and the Existing Note and any and all
      obligations of the Company thereunder (including, without limitations, in
      respect of accrued interest) are hereby cancelled and of no further force or
      effect.

    

    In
      consideration of the foregoing, concurrently with the execution hereof, the
      Company is issuing to the Lender the following securities pursuant to the terms
      of the Note and Warrants Purchase Agreement, dated as of November 30, 2006,
      among the Company, the lender and the other purchaser listed
      therein:

    

    
      	
              (i)

            	
              a
                Series B subordinated secured convertible promissory note of the
                Company,
                in the principal amount of $1,000,000;

            
	 	 
	
              (ii)

            	
              an
                original issue discount series B subordinated secured convertible
                promissory note of the Company in the principal amount of
                $400,000;

            
	 	 
	
              (iii)

            	
              a
                Series E-7 warrant to purchase 46,875,000 shares of the Company’s common
                stock at an exercise price of $0.02 per share; and

            
	 	 
	
              (iv)

            	
              a
                Series F-4 warrant to purchase 46,875,000 shares of the Company’s common
                stock at an exercise price of $0.03 per
                share

            

    

    

    

    IN
      WITNESS WHEREOF, each of the undersigned has caused this letter agreement to
      be
      signed in its name effective as of the 8th
      day of May,
      2007.

    

    
      
        
          
            
              	 	
                      HFS
                        MINORPLANET FUNDING LLC

                    	 
	 	 	 
	
                      By:

                    	
                      /S/
                        Dennis Ackerman

                    	
                      05/08/07

                    
	
                      Name:

                    	
                      Dennis
                        Ackerman

                    	 
	
                      Title:

                    	
                      Director

                    	 
	 	 	 
	
                      By:

                    	
                      /S/
                        Gary Hallgren

                    	
                      05/08/07

                    
	
                      Name:

                    	
                      Gary
                        Hallgren

                    	 
	
                      Title:

                    	
                      CEO

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