Document:

Prepared and filed by St Ives Burrups

 

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Exhibit 10.17

 AMENDED AND RESTATED

1998 EQUITY PARTICIPATION PLAN

 October 20, 2004  

 

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 AMENDED AND RESTATED  

 1998 EQUITY PARTICIPATION PLAN

  OF

KIMCO REALTY CORPORATION  

     Kimco
    Realty Corporation, a Maryland corporation, originally adopted The 1998 Equity
    Participation Plan of Kimco Realty Corporation, effective June 18, 1998,
    for the benefit of its eligible
  employees, consultants and directors. In furtherance of the purposes of the
    Plan and in order to amend the Plan in certain respects, this Amended and
    Restated
  1998 Equity Participation Plan of Kimco Realty Corporation (the “Plan”)
   is hereby adopted as of the date hereof. This amendment constitutes a complete

  amendment, restatement and continuation of the 1998 Equity Participation Plan
   of Kimco Realty Corporation.  

       The
      Plan consists of two plans, one for the benefit of key Employees (as such
      term
  is defined below) and Consultants and one for the benefit of Independent Directors
  (as such term is defined below).  

       The purposes of this Plan are as follows:

       (1)     To provide an
    additional incentive for directors, key Employees and Consultants to further
    the growth, development and financial success of the Company by personally
    benefiting through the ownership of Company stock and/or rights which recognize
    such growth, development and financial success.

       (2)     To enable the Company to obtain and retain
    the services of directors, key Employees and Consultants considered essential
    to the long range success of the Company by offering them an opportunity to
    own stock in the Company and/or rights which will reflect the growth, development
    and financial success of the Company. 

 ARTICLE I.

  DEFINITIONS  

 Section 1.1   General.

     Wherever
  the following terms are used in this Plan they shall have the meanings specified
  below, unless the context clearly indicates otherwise.  

Section 1.2   Administrator. 

     “Administrator” shall mean the entity that conducts the general administration of the Plan as provided herein.  With reference to the administration of the Plan with respect to Options granted to Independent Directors, the term “Administrator” shall refer to the Board.  With reference to the administration of the Plan with respect to any other Award, the term “Administrator” shall
    refer to the Committee unless the Board has assumed the authority for administration
    of the Plan generally as provided in Section 9.1. 

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 Section 1.3     Award.
   

      “Award”
  shall mean an Option, a Restricted Stock award or a Deferred Stock award which
  may be awarded or granted under the Plan (collectively, “Awards”).
   

 Section 1.4     Award
  Agreement.  

      “Award Agreement”
  shall mean a written agreement executed by an authorized officer of the Company
  and the Holder which shall contain such terms and conditions with respect to
  an Award as the Administrator shall determine, consistent with the Plan. 

 Section 1.5     Award
  Limit.  

      “Award Limit”
  shall mean 750,000 shares of Common Stock, as adjusted pursuant to Section 10.3.
   

 Section 1.6     Board.
   

      “Board” shall mean the Board of Directors
  of the Company.  

 Section 1.7     Code.
   

      “Code” shall mean the Internal Revenue
  Code of 1986, as amended.  

 Section 1.8      Committee.
   

      “Committee”
  shall mean the Compensation Committee of the Board, or another committee of
  the Board, appointed as provided in Section 10.1.  

 Section 1.9     Common
  Stock  

      “Common Stock”
  shall mean the common stock of the Company, par value $.01 per share, and any
  equity security of the Company issued or authorized to be issued in the future,
  but excluding any preferred stock and any warrants, options or other rights
  to purchase Common Stock. Debt securities of the Company convertible into Common
  Stock shall be deemed equity securities of the Company.  

 Section 1.10     Company.
   

      “Company”
  shall mean Kimco Realty Corporation, a Maryland corporation.  

 Section 1.11     Consultant.
   

      “Consultant” shall mean any consultant
  or adviser if:  

      (a)     The consultant
  or adviser renders bona fide services to the Company;  

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      (b)     The
  services rendered by the consultant or adviser are not in connection with the
  offer or sale of securities in a capital-raising transaction and do not directly
  or indirectly promote or maintain a market for the Company’s securities;
  and  

      (c)     The consultant or adviser is a natural person who has contracted directly with
  the Company to render such services.  

 Section 1.12     Corporate
  Transaction.  

      “Corporate
  Transaction” shall mean the consummation of any of the following stockholder-approved
  transactions to which the Company is a party:  

      (a)     a merger or
  consolidation in which the Company is not the surviving entity, except for a
  transaction the principal purpose of which is to change the State in which the
  Company is incorporated, form a holding company or effect a similar reorganization
  as to form whereupon this Plan and all Options are assumed by the successor
  entity;  

      (b)     the
    sale, transfer, exchange or other disposition of all or substantially all
    of the assets of the
  Company, in complete liquidation or dissolution of the Company in a transaction
  not covered by the exceptions to clause (a), above; or  

      (c)     any reverse
  merger in which the Company is the surviving entity but in which securities
  possessing more than fifty percent (50%) of the total combined Voting power
  of the Company’s outstanding securities are transferred or issued to a
  person or persons different from those who held such securities immediately
  prior to such merger.  

 Section 1.13      Deferred
  Stock.  

      “Deferred Stock”
  shall mean Common Stock awarded under Article VIII of the Plan.  

 Section 1.14     Director.
   

      “Director”
  shall mean a member of the Board.  

 Section 1.15     Employee.
   

      “Employee”
  shall mean any officer or other employee (as defined in accordance with Section
  3401(c) of the Code) of the Company, of Kimco Realty Services, Inc., or of any
  corporation which is a Subsidiary.  

 Section 1.16     Exchange
  Act.  

      “Exchange Act”
  shall mean the Securities Exchange Act of 1934, as amended.  

 Section 1.17     Fair
  Market Value.  

      “Fair Market
  Value” of a share of Common Stock as of a given date shall be (i) the closing
  price of a share of Common Stock on the principal exchange on which shares of
  Common Stock are then trading, if any (or as reported on any composite index
  which includes such principal exchange),
  on the trading day previous to such date, or if shares were not traded on the
  trading day previous to such date, then on the next preceding date on which
  a trade occurred, or (ii) if Common Stock is not traded on an exchange but is
  quoted on Nasdaq or a successor quotation system, the mean between the closing
  representative bid and asked prices for the Common Stock on the trading day
  previous to such date as reported by Nasdaq or such successor quotation system;
  or (iii) if Common Stock is not publicly traded on an exchange and not quoted
  on Nasdaq or a successor quotation system, the Fair Market Value of a share
  of Common Stock as established by the Committee (or the Board, in the case of
  Options granted to Independent Directors) acting in good faith.

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 Section 1.18     Holder.
   

      “Holder” shall mean a person who has
  been granted or awarded an Award.  

 Section 1.19     Incentive
  Stock Option.  

      “Incentive
  Stock Option” shall mean an option which conforms to the applicable provisions
  of Section 422 of the Code and which is designated as an Incentive Stock Option
  by the Committee.  

 Section 1.20     Independent
  Director.  

      “Independent
  Director” shall mean a member of the Board who is not an Employee of the
  Company.  

 Section 1.21     Non-Qualified
  Stock Option.  

      “Non-Qualified
  Stock Option” shall mean an Option which is not designated as an Incentive
  Stock Option by the Committee.  

 Section 1.22     Option.
   

      “Option”
  shall mean a stock option granted under Article III of this Plan. An Option
  granted under this Plan shall, as determined by the Committee, be either a Non-Qualified
  Stock Option or an Incentive Stock Option; provided, however, that Options
  granted to Independent Directors and consultants shall be Non-Qualified Stock
  Options.  

 Section 1.23     Optionee.
   

      “Optionee”
  shall mean an Employee, Consultant or Independent Director granted an Option
  under this Plan.  

 Section 1.24     Performance
  Criteria  

      “Performance
  Criteria” shall mean the following business criteria with respect to the
  Company, any Subsidiary or any division or operating unit: (a) net income,
  (b)
  pre-tax income, (c) operating income, (d) cash flow, (e) earnings per share,
  (f) return on equity, (g) return on invested capital or assets, (h) cost reductions
or savings, (i) funds from operations, (j) appreciation in the fair market value
  of Common Stock, (k) operating profit; (l) working capital; and (m) earnings
  before
    any one or more of the following items: interest, taxes, depreciation or
    amortization; provided, that each of the business criteria described in subsections
    (a) through (m) shall be determined in accordance with generally accepted
    accounting principles (“GAAP”). For each fiscal year of the Company,
    the Committee may provide for objectively determinable adjustments, as determined
    in accordance with GAAP, to any of the business criteria described in subsections
    (a) through (m) for one or more of the items of gain, loss, profit or expense:
    (i) determined to be extraordinary or unusual in nature or infrequent in
    occurrence; (ii) related to the disposal of a segment of a business; (iii)
    related to a change in accounting principles under GAAP; (iv) related to
    discontinued operations that do not qualify as a segment of business under
    GAAP; (v) attributable to the business operations of any entity acquired
    by the Company during the fiscal year and (vi) reflecting adjustments to
    funds from operations with respect to straight-line rental income as reported
in the Company’s Exchange Act reports.

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Section 1.25 Plan. 

“Plan” shall
    mean the Amended and Restated 1998 Equity Participation Plan of Kimco Realty
    Corporation.

Section 1.26 QDRO. 

“QDRO” shall mean a qualified domestic
    relations order as defined by the Code or Title I of the Employee Retirement
    Income
    Security Act of 1974, as amended, or the rules thereunder. 

Section 1.27 Restricted Stock. 

 “Restricted Stock” shall mean Common
    Stock awarded under Article VII of the Plan. 

Section 1.28 Rule 16b-3. 

“Rule 16b-3” shall mean that certain
    Rule 16b-3 under the Exchange Act, as such Rule may be amended from time
    to time. 

Section 1.29 Section 162(m) Participant 

“Section 162(m) Participant” shall mean
    any key Employee designated by the Administrator as a key Employee whose
    compensation
    for the fiscal year in which the key Employee is so designated or a future
    fiscal year may be subject to the limit on deductible compensation imposed
    by Section 162(m) of the Code. 

Section 1.30 Securities Act 

 “Securities Act” shall mean the Securities
    Act of 1933, as amended. 

Section 1.31 Subsidiary. 

“Subsidiary” shall mean any corporation
    in an unbroken chain of corporations beginning with the Company if each of
    the
    corporations other than the last corporation in the unbroken chain then owns
    stock possessing 50 percent or more of the total combined voting power of
    all classes
  of stock in one of the other corporations in such chain.  

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Section 1.32 Substitute Award 

“Substitute Award” shall mean an Option granted under this Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock; provided, however, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option. 

Section 1.33 Termination of Consultancy. 

“Termination of Consultancy” shall mean
    the time when the engagement of Holder as a Consultant to the Company or
    a Subsidiary is terminated for any reason, with or without cause, including,
    but not by way of limitation, by resignation, discharge, death or retirement;
    but excluding terminations where there is a simultaneous commencement of
    employment with the Company or any Subsidiary. The Administrator, in its
    absolute discretion, shall determine the effect of all matters and questions
    relating to Termination of Consultancy, including, but not by way of limitation,
    the question of whether a Termination of Consultancy resulted from a discharge
    for good cause, and all questions of whether particular leaves of absence
    constitute Terminations of Consultancy. Notwithstanding any other provision
    of this Plan, the Company or any Subsidiary has an absolute and unrestricted
    right to terminate a Consultant’s service at any time for any reason
    whatsoever, with or without cause, except to the extent expressly provided
    otherwise in writing. 

Section 1.34 Termination of Directorship. 

“Termination of Directorship” shall mean the time when a Holder who is an Independent Director ceases to be a Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute discretion, shall determine the effect of all matters and questions relating to Termination of Directorship with respect to Independent Directors. 

Section 1.35 Termination of Employment. 

“Termination of Employment” shall mean
    the time when the employee-employer relationship between a Holder and the
    Company or any Subsidiary is terminated for any reason, with or without cause,
    including, but not by way of limitation, a termination by resignation, discharge,
    death, disability or retirement; but excluding (i) terminations where there
    is a simultaneous reemployment or continuing employment of a Holder by the
    Company or any Subsidiary, (ii) at the discretion of the Committee, terminations
    which result in a temporary severance of the employee-employer relationship,
    and (iii) at the discretion of the Administrator, terminations which are
    followed by the simultaneous establishment of a consulting relationship by
    the Company or a Subsidiary with the former employee. The Administrator,
    in its absolute discretion, shall determine the effect of all matters and
    questions relating to Termination of Employment, including, but not by way
    of limitation, the question of whether a Termination of Employment resulted
  from a discharge for good cause, and all questions of whether particular leaves
  of absence constitute Terminations of Employment; provided,
  however,
  that, unless otherwise determined by the Administrator in its discretion, a
  leave of absence, change in status from an employee to an independent contractor
  or other change in the employee-employer relationship shall constitute a Termination
  of Employment if, and to the extent that, such leave of absence, change in
  status or other change interrupts employment for the purposes of Section 422(a)(2)
  of the Code and the then applicable regulations and revenue rulings under said
  Section. Notwithstanding any other provision of this Plan, the Company or any
  Subsidiary has an absolute and unrestricted right to terminate an Employee’s
  employment at any time for any reason whatsoever, with or without cause, except
  to the extent expressly provided otherwise in writing.  

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  ARTICLE II. 

SHARES SUBJECT TO PLAN 
  

Section 2.1	Shares Subject to Plan. 

(a)   The shares of stock subject to Awards shall be Common
    Stock, initially shares of the Company’s Common Stock, par value $.01
    per share. Subject to adjustment as provided in Section 10.3, the aggregate
    number of such shares which may be issued upon exercise of such Awards under
    the Plan shall not exceed fourteen million (14,000,000), provided, however, that
    the aggregate number of shares which may be awarded as Restricted Stock under
    Article VII of the Plan shall not exceed seven hundred and sixty six thousand
    four hundred and eighty two (766,482). In the event that Substitute Awards
    are granted under the Plan, the aggregate number of shares of Common Stock
    available under the Plan for Substitute Awards shall be increased by the
    number of shares of Common Stock which may be granted or issued with respect
    to such Substitute Awards. The shares of Common Stock issuable upon exercise
    of such Options or rights or upon any such Awards may be either previously
    authorized but unissued shares or treasury shares. 

(b)   The maximum number of shares which
    may be subject to Awards granted under the Plan to any individual in any
    calendar year shall
    not exceed the Award Limit. To the extent required by Section 162(m) of the
    Code, shares subject to Options which are canceled continue to be counted
    against the Award Limit and if, after grant of an Option, the price of shares
    subject to such Option is reduced, the transaction is treated as a cancellation
    of the Option and a grant of a new Option and both the Option deemed to be
    canceled and the Option deemed to be granted are counted against the Award
    Limit. 

Section 2.2	Add-back of Options and Other Rights 

If any Option, or other right to acquire shares
    of Common Stock under any other Award under the Plan, expires or is canceled
    without having been fully exercised, or is exercised in whole or in part
    for cash as permitted by this Plan, the number of shares subject to such
    Option or other right but as to which such Option or other right was not
    exercised prior to its expiration, cancellation or exercise may again be
    optioned, granted or awarded hereunder, subject to the limitations of Section
    2.1. Furthermore, any shares subject Awards which are adjusted pursuant to
    Section 10.3 and become exercisable with respect to shares of stock of another
    corporation shall be considered cancelled and may again be optioned, granted
    or awarded hereunder, subject to the limitations of Section
  2.1. Shares of Common Stock which are delivered by the Holder or withheld by
  the Company upon the exercise of any Award under the Plan, in payment of the
  exercise price thereof or tax withholding thereon, may again be optioned, granted
  or awarded hereunder, subject to the limitations of Section 2.1. Notwithstanding
  the provisions of this Section 2.2, no shares of Common Stock may again be
  optioned, granted or awarded if such action would cause an Incentive Stock
  Option to fail to qualify as an incentive stock option under Section 422 of
  the Code. If any shares of Restricted Stock are surrendered by the Holder
  or repurchased by the Company pursuant to Section 7.4 or 7.5 hereof, such shares
  may again be optioned, granted or awarded hereunder, subject to the limitations
  of Section 2.1. 

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 ARTICLE III.

  GRANTING OF AWARDS  

 Section 3.1 Award Agreement. 

 Each Award shall be evidenced by an Award Agreement.
  Award Agreements evidencing Awards intended to qualify as performance-based
  compensation as described in Section 162(m)(4)(C) of the Code shall contain
  such terms and conditions as may be necessary to meet the applicable provisions
  of Section 162(m) of the Code. 

 Section 3.2 Provisions Applicable to Section
  162(m) Participants.  

   (a)   The Committee, in its discretion,
    may determine whether an Award is to qualify as performance-based compensation
    as described in Section 162(m)(4)(C) of the Code. 

 (b)   Notwithstanding anything in the Plan to the
  contrary, the Committee may grant any Award to a Section 162(m) Participant,
  including Restricted Stock the restrictions with respect to which lapse upon
  the attainment of performance goals which are related to one or more of the
  Performance Criteria and any Deferred Stock award described in Article VIII
  that vests or becomes exercisable or payable upon the attainment of performance
  goals which are related to one or more of the Performance Criteria. 

 (c)   To the extent necessary to comply with the
  performance-based compensation requirements of Section 162(m)(4)(C) of the Code,
  with respect to any Award granted under Articles VII and VIII which may be granted
  to one or more Section 162(m) Participants, no later than ninety (90) days following
  the commencement of any fiscal year in question or any other designated fiscal
  period or period of service (or such other time as may be required or permitted
  by Section 162(m) of the Code), the Committee shall, in writing, (i) designate
  one or more Section 162(m) Participants, (ii) select the Performance Criteria
  applicable to the fiscal year or other designated fiscal period or period of
  service, (iii) establish the various performance targets, in terms of an objective
  formula or standard, and amounts of such Awards, as applicable, which may be
  earned for such fiscal year or other designated fiscal period or period of service,
  and (iv) specify the relationship between Performance Criteria and the performance
  targets and the amounts of such Awards, as applicable, to be earned by each
  Section 162(m) Participant for such fiscal year or other designated fiscal period
  or period of service. Following the completion of each fiscal year or other
  designated fiscal period or period of service, the Committee shall certify in
  writing whether the applicable performance targets have been achieved for such
  fiscal year or other designated fiscal period or period of service. Except as
  otherwise provided by any written agreement between the Company and any applicable
  Holder, in determining the amount earned by a Section 162(m) Participant, the
  Committee shall have the right to reduce (but not to increase) the amount payable
  at a given level of performance to take into account additional factors that
  the Committee may deem relevant to the assessment of individual or corporate
  performance for the fiscal year or other designated fiscal period or period
  of service.   

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 (d)   Furthermore, notwithstanding any other provision
  of the Plan or any Award which is granted to a Section 162(m) Participant and
  is intended to qualify as performance-based compensation as described in Section
  162(m)(4)(C) of the Code shall be subject to any additional limitations set
  forth in Section 162(m) of the Code (including any amendment to Section 162(m)
  of the Code) or any regulations or rulings issued thereunder that are requirements
  for qualification as performance-based compensation as described in Section
  162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent
  necessary to conform to such requirements.  

 Section 3.3 Limitations Applicable to Section
  16 Persons. 

 Notwithstanding any other provision of the Plan,
    the Plan, and any Award granted or awarded to any individual who is then
    subject
  to Section 16 of the Exchange Act, shall be subject to any additional limitations
    set forth in any applicable exemptive rule under Section 16 of the Exchange
    Act (including any amendment to Rule 16b-3 of the Exchange Act) that are
    requirements
  for the application of such exemptive rule. To the extent permitted by applicable
    law, the Plan and Awards granted or awarded hereunder shall be deemed amended
    to the extent necessary to conform to such applicable exemptive rule. 

 Section 3.4 At-Will Employment. 

 Nothing in the Plan or in any Award Agreement
  hereunder shall confer upon any Holder any right to continue in the employ of,
  or as a Consultant for, the Company or any Subsidiary, or as a director of the
  Company, or shall interfere with or restrict in any way the rights of the Company
  and any Subsidiary, which are hereby expressly reserved, to discharge any Holder
  at any time for any reason whatsoever, with or without cause, except to the
  extent expressly provided otherwise in a written employment agreement between
  the Holder and the Company and any Subsidiary.  

 ARTICLE IV. 

  GRANTING OF OPTIONS  

 Section 4.1 Eligibility.  

 Any Employee or Consultant selected by the Administrator
  pursuant to Section 4.4(a)(i) shall be eligible to be granted an Option. Each
  Independent Director of the Company shall be eligible to be granted Options
  at the times and in the manner set forth in Section 4.4(d).  

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 Section 4.2 Disqualification for Stock Ownership.
   

 No person may be granted an Incentive Stock Option
  under this Plan if such person, at the time the Incentive Stock Option is granted,
  owns stock possessing more than ten percent (10%) of the total combined voting
  power of all classes of stock of the Company or any then existing Subsidiary
  or parent corporation (within the meaning of Section 422 of the Code) unless
  such Incentive Stock Option conforms to the applicable provisions of Section
  422 of the Code.  

 Section 4.3 Qualification of Incentive Stock
  Options.  

 No Incentive Stock Option shall be granted to
  any person who is not an Employee.  

 Section 4.4 Granting of Options  

 (a)   The Committee shall from time to time, in
  its absolute discretion, and subject to applicable limitations of this Plan:
   

 (i)   Determine which Employees
    are key Employees and select from among the key Employees or Consultants
    (including Employees
  or Consultants who have previously received Awards under the Plan) such of
  them as in its opinion should be granted Options;  

 (ii)   Subject to the Award Limit, determine the
  number of shares to be subject to such Options granted to the selected key Employees
  or Consultants;  

 (iii)   Subject to Section 3.3, determine whether
  such Options are to be Incentive Stock Options or Non-Qualified Stock Options
  and whether such Options are to qualify as performance-based compensation as
  described in Section 162(m)(4)C) of the Code; and  

 (iv)   Determine the terms and
    conditions of such  Options, consistent with this Plan; provided, however,
    that the terms  and conditions of Options intended to qualify as performance-based
    compensation
  as described in Section 162(m)(4)(C) of the Code shall include, but not be
    limited  to, such terms and conditions as may be necessary to meet the applicable
    provisions
  of Section 162(m) of the Code.  

 (b)   Upon the selection of a key Employee or Consultant
  to be granted an Option, the Committee shall instruct the Secretary of the Company
  to issue the Option and may impose such conditions on the grant of the Option
  as it deems appropriate. Without limiting the generality of the preceding sentence,
  the Committee may, in its discretion and on such terms as it deems appropriate,
  require as a condition on the grant of an Option to an Employee or Consultant
  that the Employee or Consultant surrender for cancellation some or all of the
  unexercised Options or other rights which have been previously granted to him
  under this Plan or otherwise. An Option, the grant of which is conditioned upon
  such surrender, may have an option price lower (or higher) than the exercise
  price of such surrendered Option or other award, may cover the same (or a lesser
  or greater) number of shares as such surrendered Option or other award, may
  contain such other terms as the Committee deems appropriate, and shall be exercisable
  in accordance with its terms, without regard
  to the number of shares, price, exercise period or any other term or condition
  of such surrendered Option or other award.  

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     (c) Any Incentive
  Stock Option granted under this Plan may be modified by the Committee to disqualify
  such option from treatment as an ‘‘incentive stock option” under
  Section 422 of the Code.  

      (d) Any person who,
  in his capacity as an Independent Director, was scheduled to receive a grant
  of Options under Section 4.4 of the Amended and Restated Stock Option Plan For
  Key Employees and Outside Directors of Kimco Realty Corporation (the “1995
  Plan”) will receive such grants under this Plan. Any person who, upon
  adoption of this Plan, is not an Independent Director of the Company, but who
  later becomes
  an Independent Director shall be granted at the time of his appointment as
  an Independent Director, a Non-Qualified Option to purchase 3,000 shares of
  Common
  Stock. Each Independent Director who has received a grant pursuant to this
  Section 4.4(d) or Section 3.4 of the 1995 Plan shall be granted on the first
  and second
  anniversary of the date of his grant under this Section 4.4(d) or Section 3.4
  of the 1995 Plan (so long as he is an Independent Director on such date) a
  Non-Qualified
  Option to purchase 3,000 shares of Common Stock. All the foregoing Option grants
  authorized by this Section 4.4(d) are subject to stockholder approval of the
  Plan.  

 ARTICLE
  V.

  TERMS OF OPTIONS  

 Section 5.1      Option
  Price.  

      The price per share
     of the shares subject to each Option shall be set by the Committee; provided,
      however, that such price shall be no less than the par value of a share
       of Common Stock, unless otherwise permitted by applicable state law, and
      (i)
  in the case of Incentive Stock Options and Options intended to qualify as performance-based
       compensation as described in Section 162(m)(4)(C) of the Code, such price
      shall
  not be less than 100% of the Fair Market Value of a share of Common Stock on
       the date the Option is granted; (ii) in the case of Incentive Stock Options

  granted to an individual then owning (within the meaning of Section 424(d)
      of  the Code) more than 10% of the total combined voting power of all classes
      of
  stock of the Company or any Subsidiary or parent Corporation thereof (within
       the meaning of Section 422 of the Code) such price shall not be less than
      110%
  of the Fair Market Value of a share of Common Stock on the date the Option
      is  granted; and (iii) in the case of Options granted to Independent Directors,

  such price shall equal 100% of the Fair Market Value of a share of Common Stock
       on the date the Option is granted.  

 Section 5.2      Expiration
  of Options.  

      (a) The term of
  an Option granted hereunder shall be set by the Committee in its discretion;
  provided, however, that, no Option may be exercised to any extent by
  anyone after the first to occur of the following events:  

           (i)
  In the case of an Incentive Stock Option, (A) the expiration of ten years from
  the date the Option was granted, or (B) in the case of any Optionee owning (within
  the meaning of Section 424(d) of the Code), at the time the Incentive Stock
  Option was granted, more than 10% of the total combined voting power of all
  classes of stock of the Company, any Subsidiary or any parent corporation (within
  the meaning of Section 422 of the Code), the expiration of five years from the
  date the Incentive Stock Option was granted; or  

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           (ii)
  In the case of a Non-qualified Option, the expiration of ten years and one day
  from the date the Non-qualified Option was granted; or 

           (iii) Except in
  the case of any Optionee who is disabled (within the meaning of Section 22(e)(3)
  of the Code), the expiration of three months from the date of the Optionee’s
  Termination of Employment, Termination of Consultancy or Termination of Directorship,
  as the case may be, for any reason other than such Optionee’s death [unless
  the Optionee dies within said three-month period]; or  

           (iv) In the case
  of any Optionee who is disabled (within the meaning of Section 22(e)(3) of the
  Code), the expiration of one year from the date of the Optionee’s Termination
  of Employment, Termination of Consultancy or Termination of Directorship, as
  the case may be, for any reason other than such Optionee’s death [unless
  the Optionee dies within said one-year period]; or  

           (v) The expiration of one year from the date of
  the Optionee’s death.  

      (b) Subject to the
  provisions of Section 5.2(a), the Committee shall provide, in the terms of each
  individual Option, when such Option expires and becomes unexercisable; and (without
  limiting the generality of the foregoing) the Committee may provide in the terms
  of individual Award Agreements that said Option expires immediately upon a Termination
  of Employment, Termination of Consultancy or Termination of Directorship, as
  the case may be; provided, however, that provision may be made that such
  Option shall become exercisable in the event of a Termination of Employment
  because of the Optionee’s retirement, death, disability or as may otherwise
  be determined by the Committee.  

 Section 5.3      Consideration.
   

      In consideration
  of the granting of an Option, the Optionee shall agree, in the written Award
  Agreement, to remain in the employ of (or to consult for or to serve as an Independent
  Director of, as applicable) the Company or any Subsidiary for a period of at
  least one year (or such shorter period as may be fixed in the Award Agreement
  or by action of the Committee following grant of the Option) after the Option
  is granted (or, in the case of an Independent Director, until the next annual
  meeting of stockholders of the Company). Nothing in this Plan or in any Award
  Agreement hereunder shall confer upon any Optionee, any right to continue in
  the employ of, or as a consultant for, the Company or any Subsidiary, or as
  a director of the Company, or shall interfere with or restrict in any way the
  rights of the Company and any Subsidiary, which are hereby expressly reserved,
  to discharge any Optionee at any time for any reason whatsoever, with or without
  good cause.  

 Section 5.4      Substitute
  Awards. 

      Notwithstanding the foregoing provisions of this Article V to the
  contrary, in the case of an Option that is a Substitute Award, the price per
  share of the shares subject to such Option may be less than the Fair Market
  Value per share on the date of grant, provided, that the excess of: 

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           (a)
  The aggregate Fair Market Value (as of the date such Substitute Award is granted)
  of the shares subject to the Substitute Award; over  

           (b)
  The aggregate exercise price thereof; 

 does not exceed the excess of:  

           (c) The aggregate
  fair market value (as of the time immediately preceding the transaction giving
  rise to the Substitute Award, such fair market value to be determined by the
  Committee) of the shares of the predecessor entity that were subject to the
  grant assumed or substituted for by the Company; over  

          (d) The aggregate exercise price of such shares.

ARTICLE VI.

  EXERCISE OF OPTION 

 Section 6.1      Partial Exercise.  

      An exercisable Option
  may be exercised in whole or in part. However, an Option shall not be exercisable
  with respect to fractional shares and the Committee (or the Board, in the case
  of Options granted to Independent Directors) may require that, by the terms
  of the Option, a partial exercise be with respect to a minimum number of shares.
   

 Section 6.2      Manner
  of Exercise.  

      All or a portion
  of an exercisable Option shall be deemed exercised upon delivery of all of the
  following to the Secretary of the Company or his or her office:  

      (a) A written notice
  complying with the applicable rules established by the Committee (or the Board,
  in the case of Options granted to Independent Directors) stating that the Option,
  or a portion thereof, is exercised. The notice shall be signed by the Optionee
  or other person then entitled to exercise the Option or such portion; 

      (b) Such representations
  and documents as the Committee (or the Board, in the case of Options granted
  to Independent Directors), in its absolute discretion, deems necessary or advisable
  to effect compliance with all applicable provisions of the Securities Act of
  1933, as amended, and any other federal or state securities laws or regulations.
  The Committee or Board may, in its absolute discretion, also take whatever additional
  actions it deems appropriate to effect such compliance including, without limitation,
  placing legends on share certificates and issuing stop-transfer notices to agents
  and registrars;  

      (c) In the event
  that the Option shall be exercised pursuant to Section 8.1 by any person or
  persons other than the Optionee, appropriate proof of the right of such person
  or persons to exercise the Option; and  

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      (d)	Full cash
    payment to the Secretary of the Company for the shares with respect to which
    the
    Option, or portion thereof, is exercised. However, the Committee (or the
    Board, in the case of Options granted to Independent Directors), may in its
    discretion (i) allow a delay in payment up to thirty (30) days from the date
    the Option, or portion thereof, is exercised; (ii) allow payment, in whole
    or in part, through the delivery of shares of Common Stock which have been
    owned by the Holder for at least six months, duly endorsed for transfer to
    the Company with a Fair Market Value on the date of delivery equal to the
    aggregate exercise price of the Option or exercised portion thereof; (iii)
    allow payment, in whole or in part, through the surrender of shares of Common
    Stock then issuable upon exercise of the Option having a Fair Market Value
    on the date of Option exercise equal to the aggregate exercise price of the
    Option or exercised portion thereof; (iv) allow payment, in whole or in part,
    through the delivery of property of any kind which constitutes good and valuable
    consideration; (v) allow payment, in whole or in part, through the delivery
    of a full recourse promissory note bearing interest (at no less than such
    rate as shall then preclude the imputation of interest under the Code) and
    payable upon such terms as may be prescribed by the Committee or the Board;
    (vi) allow payment, in whole or in part, through the delivery of a notice
    that the Holder has placed a market sell order with a broker with respect
    to shares of Common Stock then issuable upon exercise of the Option, and
    that the broker has been directed to pay a sufficient portion of the net
    proceeds of the sale to the Company in satisfaction of the Option exercise
    price, provided that payment of such proceeds is then made to the Company
    upon settlement of such sale; or (vii) allow payment through any combination
    of the consideration provided in the foregoing subparagraphs (ii), (iii),
    (iv), (v) and (vi). In the case of a promissory note, the Administrator may
    also prescribe the form of such note and the security to be given for such
    note. The Option may not be exercised, however, by delivery of a promissory
    note or by a loan from the Company when or where such loan or other extension
    of credit is prohibited by law, and payment in the manner prescribed by the
    preceding sentences shall not be permitted to the extent that the Administrator
    determines that payment in such manner may result in an extension or maintenance
    of credit, an arrangement for the extension of credit, or a renewal of an
    extension of credit in the form of a personal loan to or for any Director
    or executive officer of the Company that is prohibited by Section 13(k) of
    the Exchange Act or other applicable law.
    

Section 6.3     Conditions to Issuance of Stock
Certificates.  

      The Company shall
    not be required to issue or deliver any certificate or certificates for shares
    of
    stock purchased upon the exercise of any Option or portion thereof prior
    to fulfillment of all of the following conditions: 

      (a)	The admission
    of such shares to listing on all stock exchanges on which such class of stock
    is then listed; 

      (b)	The completion
    of any registration or other qualification of such shares under any state
    or
    federal law, or under the rulings or regulations of the Securities and Exchange
    Commission or any other governmental regulatory body which the Committee
    or Board shall, in its absolute discretion, deem necessary or advisable; 

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      (c)	The obtaining
    of any approval or other clearance from any state or federal governmental
    agency
    which the Committee (or Board, in the case of Options granted to Independent
    Directors) shall, in its absolute discretion, determine to be necessary or
    advisable; 

      (d)	The lapse
    of such reasonable period of time following the exercise of the Option as
    the Committee
    (or Board, in the case of Options granted to Independent Directors) may establish
    from time to time for reasons of administrative convenience; and 

      (e)	The receipt
    by the Company of full payment for such shares, including payment of any
    applicable
    withholding tax.
    

Section 6.4     Rights
as Stockholders.   

      The Holders shall
    not be, nor have any of the rights or privileges of, stockholders of the
    Company
    in respect of any shares purchasable upon the exercise of any part of an
    Option unless and until certificates representing such shares have been issued
    by the Company to such holders.
    

Section 6.5      Ownership
and Transfer Restrictions.  

      The Committee (or
    Board, in the case of Options granted to Independent Directors), in its absolute
    discretion, may impose such restrictions on the ownership and transferability
    of the shares purchasable upon the exercise of an Option as it deems appropriate.
    Any such restriction shall be set forth in the respective Award Agreement
    and may be referred to on the certificates evidencing such shares. The Committee
    may require the Employee to give the Company prompt notice of any disposition
    of shares of Common Stock acquired by exercise of an Incentive Stock Option
    within (i) two years from the date of granting such Option to such Employee
    or (ii) one year after the transfer of such shares to such Employee. The
    Committee may direct that the certificates evidencing shares acquired by
    exercise of an Option refer to such requirement to give prompt notice of
    disposition.
    

Section 6.6     Exercise by Employees of Kimco
Realty Services, Inc.  

      Notwithstanding
    anything to the contrary contained in this Plan, an Optionee who is an employee
    of
    Kimco Realty Services, Inc. shall exercise his Option in accordance with
    the following procedures: 

      (a)   (i) Such
    Employee shall pay the exercise price to the Secretary of Kimco Realty Services,
    Inc.
    in cash; (ii) Kimco Realty Services, Inc. shall then purchase for cash from
    Kimco the number of shares underlying the exercised Options for the Fair
    Market Value of such shares; and (iii) Kimco Realty Services, Inc. shall
    then deliver such shares to the Employee. 

      (b)	In the case
    of exercise of Options pursuant to Section 6.2(d)(iii), only the provisions
    of paragraphs
    (a)(ii) and (a)(iii) above shall apply, and then only with respect to the
    net number of shares issuable. 

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Section 6.7      Additional
Limitations on Exercise of Options. 

      Holders may be
    required to comply with any timing or other restrictions with respect to
    the settlement
    or exercise of an Option, including a window-period limitation, as may be
    imposed in the discretion of the Administrator. 

ARTICLE VII.

AWARD OF RESTRICTED STOCK

Section 7.1      Eligibility. 

      Subject to the
    Award Limit, Restricted Stock may be awarded to any Employee who the Committee
    determines
    is a key Employee or any Consultant who the Committee determines should receive
    such an Award. 

Section 7.2     Award of Restricted Stock. 

     (a) The Committee may from time to time, in its
absolute discretion:

            (i) Determine
  which Employees are key Employees and select from among the key Employees or Consultants (including Employees or Consultants who have
    previously received other awards under the Plan) such of them as in its opinion
    should be awarded Restricted Stock; and 

            (ii) 	Determine
    the purchase price, if any, and other terms and conditions applicable to
    such Restricted
    Stock, consistent with the Plan. 

       (b) 	The Committee
    shall establish the purchase price, if any, and form of payment for Restricted
    Stock; provided, however, that such purchase price shall be no less than
    the par value of the Common Stock to be purchased, unless otherwise permitted
    by applicable state law. In all cases, legal consideration shall be required
    for each issuance of Restricted Stock. 

       (c) 	Upon the
    selection of a key Employee or Consultant to be awarded Restricted Stock,
    the Committee
    shall instruct the Secretary of the Company to issue such Restricted Stock
    and may impose such conditions on the issuance of such Restricted Stock as
    it deems appropriate. 

Section 7.3     Rights as Stockholders.

      Subject to Section
    7.4, upon delivery of the shares of Restricted Stock to the Holder or the
    escrow
    holder pursuant to Section 7.6, the Holder shall have, unless otherwise provided
    by the Committee, all the rights of a stockholder with respect to said shares,
    subject to the restrictions in his or her Award Agreement, including the
    right to receive all dividends and other distributions paid or made with
    respect to the shares; provided, however, that in the discretion of the Committee,
    any extraordinary distributions with respect to the Common Stock shall be
    subject to the restrictions set forth in Section 7.4. 

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 Section 7.4     Restriction.
  

      All shares of Restricted
  Stock issued under the Plan (including any shares received by holders thereof
  with respect to shares of Restricted Stock as a result of stock dividends, stock
  splits or any other form of recapitalization) shall, in the terms of each individual
  Award Agreement, be subject to such restrictions as the Committee shall provide,
  which restrictions may include, without limitation, restrictions concerning
  voting rights and transferability and restrictions based on duration of employment
  with the Company, Company performance and individual performance; provided,
  however, that, except with respect to shares of Restricted Stock granted to
  Section 162(m) Participants, by action taken after the Restricted Stock is issued,
  the Committee may, on such terms and conditions as it may determine to be appropriate,
  remove any or all of the restrictions imposed by the terms of the Award Agreement.
  Restricted Stock may not be sold or encumbered until all restrictions are terminated
  or expire. Except as otherwise provided by any written agreement between the
  Company and any applicable Holder, a Holder’s rights in unvested Restricted
  Stock shall lapse, and such Restricted Stock shall be surrendered to the Company
  without consideration, upon Termination of Employment or, if applicable, upon
  Termination of Consultancy with the Company.  

 Section 7.5     Repurchase
  of Restricted Stock. 

      The Committee shall
    provide in the terms of each individual Award Agreement that the Company
    shall
  have the right to repurchase from the Holder the Restricted Stock then subject
    to restrictions under the Award Agreement immediately upon a Termination
    of
  Employment or, if applicable, upon a Termination of Consultancy between the
    Holder and the Company, at a cash price per share equal to the lesser of
    (i)
  the Fair Market Value of a share of Common Stock on the date of Termination
    of Employment or Termination of Consultancy, as applicable, and (ii) the
    price
  per share paid by the Holder for such Restricted Stock.  

 Section 7.6     Escrow.
  

      Except as otherwise
  provided in any Award Agreement, the Secretary of the Company or such other
  escrow holder as the Committee may appoint shall retain physical custody of
  each certificate representing Restricted Stock until all of the restrictions
  imposed under the Award Agreement with respect to the shares evidenced by such
  certificate expire or shall have been removed.  

 Section 7.7      Legend.
  

      In order to enforce
  the restrictions imposed upon shares of Restricted Stock hereunder, the Committee
  shall cause a legend or legends to be placed on certificates representing all
  shares of Restricted Stock that are still subject to restrictions under Award
  Agreements, which legend or legends shall make appropriate reference to the
  conditions imposed thereby.  

 Section 7.8     Section
  83(b) Election. 

      If a Holder makes
  an election under Section 83(b) of the Code, or any successor section thereto,
  to be taxed with respect to the Restricted Stock as of the date of transfer
  of the Restricted Stock rather than as of the date or dates upon which the Holder
  would otherwise be taxable under Section
  83(a) of the Code, the Holder shall deliver a copy of such election to the Company
  immediately after filing such election with the Internal Revenue Service.

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ARTICLE VIII.

  DEFERRED STOCK  

 Section 8.1     Eligibility.
   

      Subject to the Award
  Limit, awards of Deferred Stock may be granted to any Employee whom the Committee
  determines is a key Employee or any Consultant whom the Committee determines
  should receive such an Award. Additionally, Independent Directors may be granted
  awards of Deferred Stock in lieu of directors’ fees.  

 Section 8.2     Deferred
  Stock.  

      Any key Employee
     or Consultant or Independent Director selected by the Committee may be granted

  an award of Deferred Stock in the manner determined from time to time by the
     Committee. The number of shares of Deferred Stock shall be determined by
    the
  Committee and may be linked to the Performance Criteria or other specific performance
     criteria determined to be appropriate by the Committee, in each case on
    a specified
  date or dates or over any period or periods determined by the Committee. Common
     Stock underlying a Deferred Stock award will not be issued until the Deferred

  Stock award has vested, pursuant to a vesting schedule or performance criteria
     set by the Committee. Unless otherwise provided by the Committee, a Holder
    of
  Deferred Stock shall have no rights as a Company stockholder with respect to
     such Deferred Stock until such time as the Award has vested and the Common
    Stock
  underlying the Award has been issued.  

 Section 8.3     Deferred
  Stock Agreement.  

      Each award of Deferred
     Stock shall be evidenced by an Award Agreement, which shall be executed
    by the
  Holder and an authorized Officer of the Company and which shall contain such
     terms and conditions as the Committee shall determine, consistent with this

  Plan.  

 Section 8.4     Term.
   

      The term of an award
  of Deferred Stock shall be set by the Board in its discretion.  

 Section 8.5     Exercise
  or Purchase Price. 

      The Committee may
  establish the exercise or purchase price of shares of Deferred Stock; provided,
  however, that such price shall not be less than the par value of a share
  of Common Stock, unless otherwise permitted by applicable state law.

 Section 8.6      Exercise
       Upon Termination of Employment, Termination of Consultancy or Termination
      of
  Directorship.  

        An award of Deferred
  Stock is exercisable or payable only while the Holder is an Employee, Consultant
  or Independent Director, as applicable; provided, however, that
   the Administrator in its sole and absolute discretion may provide that the
  award
  of Deferred Stock may be exercised or paid subsequent to a Termination of Employment
   following a “change of control or
   ownership” (within
  the meaning of Section 1.162-27(e)(2)(v) or any successor regulation thereto)
  of the Company.

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ARTICLE IX.

  ADMINISTRATION  

 Section 9.1     Committee.
   

      Except as may otherwise
  be determined by the Board in its sole discretion, the Committee (or another
  committee or a subcommittee of the Board assuming the functions of the Committee
  under the Plan) shall consist solely of two or more Independent Directors appointed
  by and holding office at the pleasure of the Board, each of whom is both a “non-employee
  director” as defined by Rule 16b-3 and an “outside director”
  for purposes of Section 162(m) of the Code. Appointment of Committee members
  shall be effective upon acceptance of appointment. Committee members may resign
  at any time by delivering written notice to the Board. Vacancies in the Committee
  may be filled by the Board.  

 Section 9.2     Duties
  and Powers of Committee.  

      It shall be the
  duty of the Committee to conduct the general administration of this Plan in
  accordance with its provisions. The Committee shall have the power to interpret
  this Plan and the Award Agreements, and to adopt such rules for the administration,
  interpretation, and application of this Plan as are consistent therewith and
  to interpret, amend or revoke any such rules and to amend any Award Agreement,
  provided that the rights or obligations of the Holder of the Award that is the
  subject of any such Award Agreement are not affected adversely. Notwithstanding
  the foregoing, the full Board, acting by a majority of its members in office,
  shall conduct the general administration of the Plan with respect to Awards
  granted to Independent Directors. Any such grant or award under this Plan need
  not be the same with respect to each Holder. Any such interpretations and rules
  with respect to Incentive Stock Options shall be consistent with the provisions
  of Section 422 of the Code. In its absolute discretion, the Board may at any
  time and from time to time exercise any and all rights and duties of the Committee
  under this Plan except with respect to matters which under Rule 16b-3 or Section
  162(m) of the Code, or any regulations or rules issued thereunder, are required
  to be determined in the sole discretion of the Committee.  

 Section 9.3      Majority
  Rule; Unanimous Written Consent.  

      The Committee shall
  act by a majority of its members in attendance at a meeting at which a quorum
  is present or by a memorandum or other written instrument signed by all members
  of the Committee.  

 Section 9.4      Compensation;
  Professional Assistance; Good Faith Actions.  

      Members of the
    Committee shall receive such compensation for their services as members as
    may be determined
  by the Board. All expenses and liabilities which members of the Committee incur
    in connection with the administration of this Plan shall be borne by the
    Company.
  The Committee may, with the approval of the Board, employ attorneys, consultants,
  accountants, appraisers, brokers, or other persons. The Committee, the Company
    and the Company’s officers
    and Directors shall be entitled to rely upon the advice, opinions or valuations
    of any such persons. All actions taken and all interpretations and determinations
    made by the Committee or the Board in good faith shall be final and binding
    upon all Holders, the Company and all other interested persons. No members
    of the Committee or Board shall be personally liable for any action, determination
    or interpretation made in good faith with respect to the Plan or Awards,
    and all members of the Committee and the Board shall be fully protected by
    the Company in respect of any such action, determination or interpretation.

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 Section 9.5	Delegation of Authority to Grant and Amend Awards.

The Committee may,
    but need not, delegate from time to time some or all of its authority to
    (a) grant
    Awards under the Plan and (b) amend Awards previously granted pursuant to
    the Plan to a committee consisting of one or more members of the Committee
    or of one or more officers of the Company; provided, however, that the Committee may not delegate its authority to grant or to amend Awards to individuals (x) who are subject on the date of the grant to the reporting rules under Section 16(a) of the Exchange Act, (y) who are Section 162(m) Participants, or (z) who are officers of the Company who are delegated authority by the Committee hereunder. Any delegation hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation of authority and may be rescinded at any time by the Committee. At all times, any committee appointed under this Section 9.5 shall serve in such capacity at the pleasure of the Committee. 

ARTICLE X. 

MISCELLANEOUS PROVISIONS 

Section 10.1 Not Transferable. 

Awards under this
    Plan may not be sold, pledged, assigned, or transferred in any manner other
    than by
    will or the laws of descent and distribution or pursuant to a QDRO, unless
    and until such rights or awards have been exercised, or the shares underlying
    such rights or awards have been issued, and all restrictions applicable to
    such shares have lapsed. No Award or interest or right therein shall be liable
    for the debts, contracts or engagements of the Holder or his successors in
    interest or shall be subject to disposition by transfer, alienation, anticipation,
    pledge, encumbrance, assignment or any other means whether such disposition
    be voluntary or involuntary or by operation of law by judgment, levy, attachment,
    garnishment or any other legal or equitable proceedings (including bankruptcy),
    and any attempted disposition thereof shall be null and void and of no effect,
    except to the extent that such disposition is permitted by the preceding
    sentence. 

During the lifetime of the Holder, only he may exercise an Option or other Award (or any portion thereof) granted to him under the Plan, unless it has been disposed of pursuant to a QDRO. After the death of the Holder, any exercisable portion of an Option or other Award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Award Agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Holder’s
    will or under the then applicable laws of descent and distribution. 

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Section 10.2 Amendment, Suspension or Termination of this Plan. 

Except as otherwise provided in this Section 10.2, this Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee.  However, without approval of the Company’s
    stockholders given within twelve months before or after the action by the
    Board or the Committee, no action of the Board or the Committee may, except
    as provided in Section 8.3, increase the limits imposed in Section 2.1 on
    the maximum number of shares which may be issued under this Plan or modify
    the Award Limit, and no action of the Board or the Committee may be taken
    that would otherwise require stockholder approval as a matter of applicable
    law, regulation or rule. No amendment, suspension or termination of this
    Plan shall, without the consent of the Holder, alter or impair any rights
    or obligations under any Awards theretofore granted or awarded, unless the
    Award itself otherwise expressly so provides. No Award may be granted or
    awarded during any period of suspension or after termination of this Plan,
    and in no event may any Incentive Stock Option be granted under this Plan
  after the first to occur of the following events: 

	 	(a)

    	The expiration of ten years from the date the Plan is adopted by the Board; or
	 	 	 
	 	(b)

    	The expiration of ten years from
       the date the Plan is approved by the Company’s stockholders
    under Section 10.4. 

  Section 10.3 Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events. 
  

(a)	  Subject to Section 10.3(d), in
    the event that the Committee (or the Board, in the case of Options granted
    to Independent Directors) determines that any dividend or other distribution
    (whether in the form of cash, Common Stock, other securities, or other property),
    recapitalization, reclassification, stock split, reverse stock split, reorganization,
    merger, consolidation, split-up, spin-off, combination, repurchase, liquidation,
    dissolution, or sale, transfer, exchange or other disposition of all or substantially
    all of the assets of the Company (including, but not limited to, a Corporate
    Transaction), or exchange of Common Stock or other securities of the Company,
    issuance of warrants or other rights to purchase Common Stock or other securities
    of the Company, or other similar Corporate Transaction or event, in the Committee’s
    sole discretion (or in the case of Options granted to Independent Directors,
    the Board’s sole discretion), affects the Common Stock such that an
    adjustment is determined by the Committee to be appropriate in order to prevent
    dilution or enlargement of the benefits or potential benefits intended to
    be made available under the Plan or with respect to an Award, 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 Common Stock (or other securities or property) with respect to which Awards may be granted, or which may be awarded (including, but not limited to, adjustments of the limitations in Section 2.1 on the maximum number and kind of shares which may be issued and adjustments of the Award Limit), 

 (ii)   the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Awards, and 

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(iii)   the grant or exercise price with respect to any Award. 

(b)     	Subject to
    Sections 10.3(b)(vii) and 10.3(d), in the event of any Corporate Transaction
    or other transaction or event described in Section 10.3(a) or any unusual
    or nonrecurring transactions or events affecting the Company, any affiliate
    of the Company, or the financial statements of the Company or any affiliate,
    or of changes in applicable laws, regulations, or accounting principles,
    the Administrator in its sole and absolute discretion, and on such terms
    and conditions as it deems appropriate, either by the terms of the Award
    or by action taken prior to the occurrence of such transaction or event and
    either automatically or upon the Holder’s request,  is hereby authorized
    to take any one or more of the following actions whenever the Administrator
    determines that such action is appropriate in order to prevent dilution or
    enlargement of the benefits or potential benefits intended to be made available
    under the Plan or with respect to any Award under this Plan, to facilitate
    such transactions or events or to give effect to such changes in laws, regulations
    or principles: 

(i)   To provide for either (A) the purchase of any such Award for an amount of cash and/or other property equal to the amount that could have been attained upon the exercise of such Award, or realization of the Holder’s rights had such Award been currently exercisable or payable (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction or event described in this Section 10.3(b) the Administrator determines in good faith that no amount would have been obtained upon the exercise of such Award or the realization of the Holder’s rights, then such Award may be terminated by the Company without payment) or (B) fully vested or the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; 

(ii)   To provide that the Award cannot vest, be exercised or become payable after such event; 

(iii)   To provide that such Award shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in the provisions of such Award; 

(iv)   To provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

(v) 	  To make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Restricted Stock or Deferred Stock and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards and Awards which may be granted in the future; 

(vi)  To provide for a specified period
    of time prior to such event, the restrictions imposed under an Award Agreement
    upon some or all shares of Restricted Stock
or Deferred Stock may be terminated, and in the case of Restricted Stock, some
or all of the shares of such Restricted Stock may cease to be subject to repurchase
under Section 7.5 or forfeiture under Section 7.4 after such event; and 

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(vii)     In
    the event of any Corporate Transaction, each outstanding Award shall, immediately
    prior to the effective date of the Corporate Transaction, automatically become
    fully exercisable for all of the shares of Common Stock at the time subject
    to such rights or fully vested, as applicable, and may be exercised or become
    payable for any or all of those shares as fully-vested shares of Common Stock.
    However, an outstanding Award shall not so accelerate if and to the extent:
    (i) such Award is, in connection with the Corporate Transaction, either to
    be assumed by the successor or survivor corporation (or parent thereof) or
    to be replaced with a comparable right with respect to shares of the capital
    stock of the successor or survivor corporation (or parent thereof) or (ii)
    the acceleration of exercisability of such Award is subject to other limitations
    imposed by the Administrator at the time of grant. The determination of comparability
    of rights under clause (i) above shall be made by the Administrator, and
    its determination shall be final, binding and conclusive.

      (c)     Subject to Section 10.3(d) and 10.8, the Administrator may, in its discretion, include such further provisions and limitations in any Award agreement or certificate, as it may deem equitable and in the best interests of the Company. 

      (d)     With respect to Awards which are granted to Section 162(m) Participants and are intended to qualify as performance-based compensation under Section 162(m)(4)(C), no adjustment or action described in this Section 9.3 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan to fail to so qualify under Section 162(m)(4)(C), as the case may be, or any successor provisions thereto.  No adjustment or action described in this Section 10.3 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan to violate Section 422(b)(1) of the Code.  Furthermore, no such adjustment or action shall be authorized to the extent such adjustment or action would result in short-swing profits liability under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the Committee determines that the

Award is not to comply with such exemptive conditions.  The number of shares of Common Stock subject to any Award shall always be rounded to the next whole number.

Section 10.4     Approval
of Plan by Stockholders. 

     The Plan will be submitted for the approval of the Company’s stockholders within twelve months after the date of the Board’s adoption of this amended plan.  Except as otherwise prohibited by the New York Stock Exchange or other applicable exchange or quotation system or as prohibited by an applicable statute or other law, Awards may be awarded prior to such stockholder approval, provided that such Awards not be exercisable prior to the time when the Plan is approved by the Company’s stockholders, and provided further that if such approval has not been obtained at the end of said twelve month period, all Awards previously awarded under the Plan shall thereupon be canceled and become null and void.

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Section 10.5     Tax
Withholding. 

     The Company shall be entitled to require payment in cash or deduction from other compensation payable to each Holder of any sums required by federal, state or local tax law to be withheld with respect to the issuance, vesting, exercise or payment of any Award.  The Committee may in its discretion and in satisfaction of the foregoing requirement allow such Holder to elect to have the Company withhold shares of Common Stock otherwise issuable under such Option or other award (or allow the return of shares of Common Stock) having a Fair Market Value equal to the sums required to be withheld. 

Section 10.6     Loans. 

     The Committee may, in its discretion, extend one or more loans to key Employees in connection with the exercise or receipt of an Award granted or awarded under the Plan, or the issuance of Restricted Stock or Deferred Stock awarded under the Plan.  The terms and conditions of any such loan shall be set by the Committee. Notwithstanding the foregoing, no loan shall be made to an Employee under this Section to the extent such loan shall result in an extension or maintenance of credit, an arrangement for the extension of credit, or a renewal of an extension of credit in the form of a personal loan to or for any Director or executive officer of the Company that is prohibited by Section 13(k) of the Exchange Act or other applicable law. In the event that the Administrator determines in its discretion that any loan under this Section may be or will become prohibited by Section 13(k) of the Exchange Act or other applicable law, the Administrator may provide

that such loan shall be immediately due and payable in full and may take any other action in connection with such loan as the Administrator determines in its discretion to be necessary or appropriate for the repayment, cancellation or extinguishment of such loan. 

Section 10.7     Forfeiture
Provisions. 

     Pursuant to its general
authority to determine the terms and conditions applicable to Awards under the
Plan, the Administrator shall have the right to provide, in the terms of Awards
made under the Plan, or to require a Holder to agree by separate written instrument
at the time the Award is granted, that (a)(i) any proceeds, gains or other economic
benefit actually or constructively received by the Holder upon any receipt or
exercise of the Award, or upon the receipt or resale of any Common Stock underlying
the Award, must be paid to the Company, and (ii) the Award shall terminate and
any unexercised portion of the Award (whether or not vested) shall be forfeited,
if (b)(i) a Termination of Employment, Termination of Consultancy or Termination
of Directorship occurs prior to a specified date, or within a specified time
period following receipt or exercise of the Award, or (ii) the Holder at any
time, or during a specified time period, engages in any activity in competition
with the Company, or which is inimical, contrary or harmful to the interests
of the Company, as further defined by the Administrator or (iii) the Holder incurs
a Termination of Employment, Termination of Consultancy or Termination of Directorship
for cause. 

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Section 10.8     Effect
of Plan Upon Options and Compensation Plans. 

     The adoption of this Plan shall not affect any other compensation or incentive plans in effect for the Company or any Subsidiary. Nothing in this Plan shall be construed to limit the right of the Company (i) to establish any other forms of incentives or compensation for Employees, Directors or consultants of the Company or any Subsidiary or (ii) to grant or assume options or other rights otherwise than under this Plan in connection with any proper corporate purpose including but not by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, limited liability company, firm or association. 

Section 10.9     Compliance with Laws. 

     The Plan, the granting
and vesting of Awards under the Plan and the issuance and delivery of shares
of Common Stock and the payment of money under the Plan or under Awards granted
or awarded hereunder are subject to compliance with all applicable federal and
state laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any
listing, regulatory or governmental authority as may, in the opinion of counsel
for the Company, be necessary or advisable in connection therewith; provided, however, that
the foregoing shall not relieve the Company of its obligations under any Award.
Any securities delivered under the Plan shall be subject to such restrictions,
and the person acquiring such securities shall, if requested by the Company,
provide such assurances and representations to the Company as the Company may
deem necessary or desirable to assure compliance with all applicable legal requirements.
To the extent permitted by applicable law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations. 

Section 10.10     Federal Income Tax Consequences. 

     The following is a
general summary under current law of the material federal income tax consequences
to participants in the Plan. This summary deals with the general tax principles
that apply and is provided only for general information. Some kinds of taxes,
such as the alternative minimum tax and state and local income taxes are not
discussed. Tax laws are complex and subject to change and may vary depending
on individual circumstances and from locality to locality. The summary does not
discuss all aspects of income taxation that may be relevant to each participant
in light of his or her personal investment circumstances. This summarized tax
information is not tax advice.

     For federal income tax purposes, if a Holder is granted non-qualified stock options under the Plan, the Holder will not have taxable income on the grant of the option, nor will the Company be entitled to any deduction. Generally, on exercise of non-qualified stock options a Holder will recognize ordinary income, and the Company will be entitled to a deduction, in an amount equal to the difference between the option exercise price and the fair market value of the Common Stock on the date of exercise. There is no taxable income when the Holder is granted an incentive stock option or when that option is exercised. However, the amount by which the fair market value of the shares at the time of exercise exceeds the option price will be an "item of tax preference" for alternative minimum tax purposes. Gain realized on the sale of stock issued to
the Holder pursuant to the exercise of an incentive
stock option is taxable at capital gains rates, and no tax deduction is available
to the Company, unless the Holder disposes of the shares within (1) two years
after the date of grant of the option or (2) within one year of the date the
shares were transferred to the Holder. If the shares of Common Stock are sold
or otherwise disposed of before the end of the one-year and two-year periods
specified above, the difference between the option exercise price and the fair
market value of the shares on the date of the option's exercise will be taxed
at ordinary income rates, and the Company will be entitled to a deduction to
the extent the Holder must recognize ordinary income.

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      No taxable income
    is realized on the receipt of the new restricted shares
    of Common Stock
    or on the receipt of Deferred Stock, but upon the lapse of all of the restrictions
    on the stock or upon the vesting and issuing of the stock due to the attainment
    of certain performance or other criteria, the fair market value of the shares
    (less any purchase price paid for such shares, if any) received must be treated
    as compensation taxable as ordinary income to the Holder in the year of the
    lapse of the final restrictions. The Company will be entitled to a deduction
    for compensation paid in the same amount which the Holder realized as ordinary
    income. 

Section 10.11     Titles. 

      Titles are provided
    herein for convenience only and are not to serve as a basis for interpretation
    or
    construction of this Plan. 

Section 10.12     Governing Law. 

      This Plan and any
    agreements hereunder shall be administered, interpreted and enforced under
    the internal
    laws of the State of New York without regard to conflicts of laws thereof. 

* * * 

      I hereby certify
    that the foregoing Plan was duly adopted by the Board of Directors of Kimco
    Realty
    Corporation on October 20, 2004. 

     Executed on this 20th day of
October, 2004.

	 	/s/ Bruce M. Kauderer
	 	

	 	Secretary

127NEITHER THIS DEBENTURE NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION
OF THIS DEBENTURE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT") OR UNDER THE SECURITIES LAWS OF ANY STATE. NEITHER THIS
DEBENTURE NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS
DEBENTURE MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE DEBENTURES UNDER SUCH
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE
ACT.

                                 ROOMLINX, INC.

                              CONVERTIBLE DEBENTURE

                                                                   March 2, 2005

$XXXXX.00

      FOR VALUE RECEIVED, the undersigned RoomLinX Inc., a Nevada corporation
(referred to herein as "Borrower" or the "Company"), promises to pay to the
order of [Lender], with an address at [lender's address] ("Lender"), the
principal sum of [ ] and 00/100 Dollars ($XX,XXX.00), or such lesser principal
amount as is then outstanding on the earlier of 180 days from the date hereof or
such date that the Company consummates a financing with gross cash proceeds of
at least $1,000,000 (the "Maturity Date"), and interest thereon at a rate equal
to eleven percent (11%) per annum (the "Interest Rate"), payable at maturity.
The principal balance then outstanding under this convertible debenture
("Debenture") plus accrued but unpaid interest shall be paid in full on the
Maturity Date along with payment of any other amounts due hereunder. Neither
principal nor interest may be prepaid in whole or in part without the prior
written consent of the Lender.

      Notwithstanding any other provision hereof, interest paid or becoming due
hereunder shall in no event exceed the maximum rate permitted by applicable law.
All amounts due hereunder are payable in lawful money of the United States of
America to the Lender at the address above indicated.

      This is the Debenture referred to in the Securities Purchase Agreement
("Securities Purchase Agreement"), to be executed by the Borrower and Lender as
of the date hereof. The terms and conditions of the Securities Purchase
Agreement and all other documents and instruments delivered in connection
therewith, including, without limitation, the Registration Rights Agreement
(collectively, the "Loan Documents") are incorporated by reference herein and
made a part hereof. The execution and delivery of the Loan Documents shall not
be a condition to the effectiveness of this Debenture upon execution and
delivery hereof by the Borrower. The Borrower has taken all necessary action to
authorize the execution, delivery and performance of this Debenture. This
Debenture constitutes the legal, valid and binding obligations of the Borrower,
enforceable against it in accordance with its terms. Notwithstanding anything
contained herein or in the Loan Documents, this Debenture shall be in default
and Lender shall have all rights and remedies available to it under the law, in
the event that Borrower shall not pay any amounts hereunder when due. All
capitalized terms not otherwise defined herein shall have their respective
meanings as set forth in the Securities Purchase Agreement.

<PAGE>

      Section 1. (a) At any time from the date hereof through the date that this
Debenture is paid in full, Lender shall have the right, in its sole discretion,
to convert the principal balance of this Debenture then outstanding plus accrued
but unpaid interest, in whole or in part, into shares of Common Stock, par value
$.001 per share ("Common Stock") of the Borrower at a conversion price equal to
$.075 per share of Common Stock, subject to adjustment as provided herein (the
"Conversion Price").

      (b) Lender may convert this Debenture at the then applicable Conversion
Price by the surrender of this Debenture (properly endorsed) at the principal
office of the Borrower, or at such other agency or office of the Borrower in the
United States of America as the Borrower may designate by notice in writing to
the Lender at the address of Lender appearing herein. The Lender shall effect
conversions by delivering to the Borrower the form of Notice of Conversion
attached hereto as Annex A (a "Notice of Conversion"), specifying therein the
principal amount of Debenture to be converted and the date on which such
conversion is to be effected (a "Conversion Date"). If no Conversion Date is
specified in a Notice of Conversion, the Conversion Date shall be the date that
such Notice of Conversion is provided hereunder. To effect conversions
hereunder, the Lender shall not be required to physically surrender Debentures
to the Borrower unless the entire principal amount of this Debenture plus all
accrued and unpaid interest thereon has been so converted. Conversions hereunder
shall have the effect of lowering the outstanding principal amount of this
Debenture in an amount equal to the applicable conversion. The Lender and the
Borrower shall maintain records showing the principal amount converted and the
date of such conversions. The Lender and any assignee, by acceptance of this
Debenture, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Debenture, the unpaid and
unconverted principal amount of this Debenture may be less than the amount
stated on the face hereof. In the event of the conversion of all or a portion of
this Debenture, a certificate or certificates for the securities so converted,
as applicable, registered in the name of the Lender, shall be delivered to the
Lender as soon as practicable after the receipt by Borrower of this Debenture
and Lender's written request for conversion.

      (c) In addition to the conversion rights above, the Lender shall have the
right, in its sole discretion, to convert the principal balance of this
Debenture then outstanding plus accrued but unpaid interest, in whole or in
part, into equity securities of the Borrower being issued in any private
offering of equity securities of the Company consummated prior to the Maturity
Date, upon the terms and conditions of such offering, at a conversion price
equal to the lower of (i) the purchase price paid by such investors in such
private offering or (ii) a purchase price for such equity securities calculated
based on an assumption that the lowest underlying conversion price of such
equity securities is equal to the then effective Conversion Price.

                                       2
<PAGE>

      Section 2. If the Borrower, at any time while this Debenture is
outstanding, (A) shall pay a stock dividend or otherwise make a distribution or
distributions on shares of its Common Stock or any other equity or equity
equivalent securities payable in shares of Common Stock, (B) subdivide
outstanding shares of Common Stock into a larger number of shares, (C) combine
(including by way of reverse stock split) outstanding shares of Common Stock
into a smaller number of shares, or (D) issue by reclassification of shares of
the Common Stock any shares of capital stock of the Borrower, then the
Conversion Price shall be multiplied by a fraction of which the numerator shall
be the number of shares of Common Stock (excluding treasury shares, if any)
outstanding before such event and of which the denominator shall be the number
of shares of Common Stock (excluding treasury shares, if any) outstanding after
such event. Any adjustment made pursuant to this paragraph shall become
effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or reclassification.

      In case of any consolidation or merger of the Borrower with or into
another corporation or the conveyance of all or substantially all of the assets
of the Borrower to another corporation, this Debenture shall thereafter be
convertible (to the extent such conversion is permitted hereunder) into the
number of shares of stock or other securities or property to which a holder of
the number of shares of Common Stock of the Borrower deliverable upon conversion
of this Debenture would have been entitled upon such consolidation, merger or
conveyance; and, in any such case, appropriate adjustment shall be made in the
application of the provisions herein set forth with respect to the rights and
interest thereafter of the holders of this Debenture, to the end that the
provisions set forth herein shall be thereafter applicable, as nearly as
reasonably may be, in relation to any shares of stock or other property
thereafter deliverable upon the conversion of the Debenture.

      Section 3. (a) If the Borrower at any time while this Debenture is
outstanding shall issue, or be deemed to have issued (a "Triggering Issuance"),
Additional Shares of Common Stock (as hereinafter defined) without consideration
or for consideration per share of Common Stock less than the then applicable
Conversion Price (the "Dilutive Price") in effect immediately prior to such
issuance, then forthwith upon the occurrence of any such event (the "Dilutive
Event"), if such Triggering Issuance occurs prior to the 60th day following the
consummation of a subsequent financing by the Company with gross cash proceeds
of at least $3,000,000 (the "Qualified Offering"), then the Conversion Price
shall be reduced so that the Conversion Price in effect immediately following
the Dilutive Event will equal the Dilutive Price; if such Triggering Issuance
occurs after the 60th day following the consummation of a Qualified Offering,
then the Conversion Price in effect immediately following the Dilutive Event
will equal a price determined by multiplying such Conversion Price by a fraction
of which the numerator shall be the number of shares of Common Stock outstanding
immediately prior to the Dilutive Issuance plus the number of shares of Common
Stock which the aggregate offering price for such Dilutive Issuance (assuming
receipt by the Company in full of all consideration payable upon exercise of
such rights, options or warrants) would purchase at the Conversion Price, and
the denominator of which shall be the sum of the number of shares of Common
Stock outstanding immediately prior to the Dilutive Issuance plus the number of
shares of Common Stock so issued or issuable in connection with the Dilutive
Issuance.

                                       3
<PAGE>

        As used herein:

            "Additional Shares of Common Stock" shall mean all shares of Common
            Stock issued or deemed to be issued by the Borrower after the date
            hereof which represent a Triggering Issuance. If the Borrower issues
            any Options or Convertible Securities (as hereinafter defined), the
            maximum number of shares of Common Stock issuable thereunder shall
            be deemed to be Additional Shares of Common Stock issued as of the
            time of such issue, if the consideration per share of such
            Additional Shares of Common Stock (as hereinafter determined) is
            less than the then-applicable Conversion Price, until such time as
            such Options or Convertible Securities shall terminate or be
            exercised or converted into Common Stock, upon which time the number
            of shares of Common Stock actually thereupon issued shall be deemed
            to be Additional Shares of Common Stock. The Borrower shall be
            deemed to have issued the maximum number of shares of Common Stock
            potentially underlying any Options or Convertible Securities.
            Notwithstanding the foregoing, no issuance or deemed issuance nor
            Common Stock or options or warrants to purchase Common Stock issued
            to (i) officers, directors or employees of or consultants to the
            Borrower pursuant to any compensation agreement, plan or arrangement
            or the issuance of Common Stock upon the exercise of any such
            options or warrants, provided such securities were issued prior to
            the date hereof or pursuant to a stock option plan that was approved
            by the board of directors and stockholders of the Borrower or were
            assumed in a merger or other business combination by the Borrower;
            (ii) upon conversion of existing convertible securities outstanding
            as of the date hereof or this Debenture; (iii) upon exercise of
            outstanding warrants existing as of the date hereof; and (iv) in
            connection with a business acquisition where the stockholders of the
            Borrower prior to such acquisition own 50% or more of the Common
            Stock of the Borrower following such acquisition, or to an
            institution or bank lender or licensor of tangible or intangible
            property in connection with a loan transaction or equipment lease or
            licensing transaction (provided that the primary purpose of any such
            equipment lease or licensing transaction is not raising capital),
            shall be deemed the issuance of Additional Shares of Common Stock.

                                       4
<PAGE>

            "Options" shall mean rights, options or warrants to subscribe for,
            purchase or otherwise acquire either Common Stock or Convertible
            Securities.

            "Convertible Securities" shall mean any evidences of indebtedness,
            shares (other than Common Stock) or other securities directly or
            indirectly convertible into or exchangeable for Common Stock.

      With respect to Options and Convertible Securities, "consideration" per
share of Additional Shares of Common Stock shall be determined by adding (x) the
aggregate consideration received upon issuance of the Options or Convertible
Securities divided by the number of shares receivable upon the exercise or
conversion thereof and (y) the minimum possible consideration per share received
or to be received per share upon the exercise, conversion or exchange of such
Options or Convertible Securities for shares of Common Stock. Common Stock
outstanding as of a given date shall be the number of shares of Common Stock
(excluding treasury shares, if any) issued and outstanding.

      Upon the occurrence of each adjustment or readjustment of the Conversion
Price hereunder, the Borrower at its expense promptly shall compute such
adjustment or readjustment and furnish to the holder of this Debenture a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based.

      Section 4. This Debenture and any of the rights granted hereunder are
freely transferable by the Lender, in its sole discretion, subject to federal
and state securities law restrictions, if any.

      Section 5. The Borrower covenants that it will at all times reserve and
keep available out of its authorized and unissued shares of Common Stock solely
for the purpose of issuance upon conversion of this Debenture, each as herein
provided, free from preemptive rights or any other actual contingent purchase
rights of persons other than the Lender, not less than such number of shares of
the Common Stock as shall be issuable upon the conversion of the outstanding
principal amount of this Debenture. The Borrower covenants that all shares of
Common Stock that shall be so issuable shall, upon issue, be duly and validly
authorized, issued and fully paid, nonassessable. No consent of any other party
and no consent, license, approval or authorization of, or registration or
declaration with, any governmental authority, bureau or agency is required in
connection with the execution, delivery or performance by the Borrower, or the
validity or enforceability of this Debenture other than such as have been met or
obtained. The execution, delivery and performance of this Debenture and all
other agreements and instruments executed and delivered or to be executed and
delivered pursuant hereto or thereto or the securities issuable upon conversion
of this will not violate any provision of any existing law or regulation or any
order or decree of any court, regulatory body or administrative agency or the
certificate of incorporation or by-laws of the Borrower or any mortgage,
indenture, contract or other agreement to which the Borrower is a party or by
which the Borrower or any property or assets of the Borrower may be bound.

      Section 6. Upon a conversion hereunder the Borrower shall not be required
to issue stock certificates representing fractions of shares of the Common
Stock, and in lieu of any fractional shares which would otherwise be issuable,
the Borrower shall issue the next highest whole number of shares of Common
Stock.

                                       5
<PAGE>

      Section 7. If (i) the Borrower shall declare a dividend (or any other
distribution) on the Common Stock; (ii) the Borrower shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock; (iii) the
Borrower shall authorize the granting to all holders of the Common Stock rights
or warrants to subscribe for or purchase any shares of capital stock of any
class or of any rights; (iv) the approval of any stockholders of the Borrower
shall be required in connection with any reclassification of the Common Stock,
any consolidation or merger to which the Borrower is a party, any sale or
transfer of all or substantially all of the assets of the Borrower, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; or (v) the Borrower shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Borrower; then, in each case, the Borrower shall cause to be filed at each
office or agency maintained for the purpose of conversion of the Debentures, and
shall cause to be mailed to the Lender at its last address as shall appear upon
the debenture records of the Borrower, at least 20 calendar days prior to the
applicable record or effective date hereinafter specified, a notice stating (i)
the date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be taken,
the date as of which the holders of the Common Stock of record to be entitled to
such dividend, distribution, redemption, rights or warrants are to be
determined, or (ii) the date on which such reclassification, consolidation,
merger, sale, transfer, share exchange, dissolution, liquidation or winding up
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
share exchange, dissolution, liquidation or winding up, provided, that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice. The Lender is entitled to convert this Debenture during the
20-day period commencing the date of such notice to the effective date of the
event triggering such notice.

      Section 8. The issuance of certificates for shares of the Common Stock or
other securities on conversion of this Debenture shall be made without charge to
the Lender for any documentary stamp or similar taxes that may be payable in
respect of the issue or delivery of such certificate, provided that the Borrower
shall not be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of any such certificate upon
conversion in a name other than that of the Lender and the Borrower shall not be
required to issue or deliver such certificates unless or until the person or
persons requesting the issuance thereof shall have paid to the Borrower or its
designee the amount of such tax or shall have established to the satisfaction of
the Borrower that such tax has been paid.

      Section 9. Any payment of principal or interest which remains unpaid for
more than five (5) days after such payment is due shall be subject to a cash
penalty equal to one and one half percent (1.5%) compounded monthly, for each
month that payment in full is not received up to a maximum of eight percent
(8%). Notwithstanding anything herein to the contrary, in the event this
Debenture is not paid in full or converted on or prior the Maturity Date,
interest at the Interest Rate shall compound on a monthly basis, commencing
immediately following such Maturity Date.

                                       6
<PAGE>

      Borrower agrees that in the event any amounts due and payable hereunder
are collected by law or through an attorney at law, to pay all costs of
collection, including, without limitation, reasonable attorney's fees.

      Nothing herein shall limit any right granted to Lender by any other
instrument or document or by law or equity.

      The undersigned for itself, and its respective successors and assigns,
hereby waives presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance or endorsement
of this Debenture.

      Section 10. Each of the following events, if occurring while any of the
principal or interest of this Debenture remains unpaid, shall constitute an
"Event of Default" hereunder:

(a)   The Borrower shall fail to pay the principal or interest of this Debenture
      or any other amounts payable to the Lender hereunder when due whether at
      scheduled maturity, upon acceleration or otherwise.

(b)   Any representation or warranty made or deemed to be made by the Borrower
      (or any of its officers, directors, employees or agents) under or in
      connection with this Debenture or in any Loan Document shall prove to have
      been false or incorrect in any material respect when made.

(c)   The Borrower shall fail to observe or perform any other material covenant,
      agreement or warranty contained in, or otherwise commit any material
      breach of any of the Loan Documents, which failure or breach is not cured,
      if possible to cure, within the earlier to occur of (A) 5 business days
      after notice of such default is sent by the Lender or by any other Lender
      and (B) 10 business days after the Borrower shall become or should have
      become aware of such failure or breach.

(d)   The Borrower or any of its active subsidiaries shall commence, or there
      shall be commenced against the Borrower or any such active subsidiary a
      case under any applicable bankruptcy or insolvency laws as now or
      hereafter in effect or any successor thereto, or the Borrower commences
      any other proceeding under any reorganization, arrangement, adjustment of
      debt, relief of debtors, dissolution, insolvency or liquidation or similar
      law of any jurisdiction whether now or hereafter in effect relating to the
      Borrower or any active subsidiary thereof or there is commenced against
      the Borrower or any active subsidiary thereof any such bankruptcy,
      insolvency or other proceeding which remains undismissed for a period of
      60 days; or the Borrower or any active subsidiary thereof is adjudicated
      insolvent or bankrupt; or any order of relief or other order approving any
      such case or proceeding is entered; or the Borrower or any active
      subsidiary thereof suffers any appointment of any custodian or the like
      for it or any substantial part of its property which continues
      undischarged or unstayed for a period of 60 days; or the Borrower or any
      active subsidiary thereof makes a general assignment for the benefit of
      creditors; or the Borrower shall fail to pay, or shall state that it is
      unable to pay, or shall be unable to pay, its debts generally as they
      become due; or the Borrower or any active subsidiary thereof shall call a
      meeting of its creditors with a view to arranging a composition,
      adjustment or restructuring of its debts; or the Borrower or any active
      subsidiary thereof shall by any act or failure to act expressly indicate
      its consent to, approval of or acquiescence in any of the foregoing; or
      any corporate or other action is taken by the Borrower or any active
      subsidiary thereof for the purpose of effecting any of the foregoing;

                                       7
<PAGE>

      Immediately upon the occurrence of an Event of Default, at Lender's
option, (i) the Maturity Date shall be deemed to have occurred automatically and
(ii) the entire principal amount of this Debenture then outstanding, all other
amounts payable by the Borrower hereunder shall automatically become and be due
and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by the Borrower, anything herein to the
contrary notwithstanding.

      Section 11. Any and all notices or other communications or deliveries to
be provided by the Lender hereunder, including, without limitation, any
conversion notice, shall be in writing and delivered personally, by facsimile,
sent by a nationally recognized overnight courier service or sent by certified
or registered mail, postage prepaid, addressed to the Borrower, 401 Hackensack
Ave., 3rd Floor, Hackensack, NJ 07601, with a copy to Lowenstein Sandler, P.C.,
65 Livingston Avenue, Roseland, NJ 07068, Attn: Peter H. Ehrenberg, Esq., or
such other address or facsimile number as the Borrower may specify for such
purposes by notice to the Lender delivered in accordance with this paragraph.
Any and all notices or other communications or deliveries to be provided by the
Borrower hereunder shall be in writing and delivered personally, by facsimile,
sent by a nationally recognized overnight courier service or sent by certified
or registered mail, postage prepaid, addressed to each Lender at the address of
such Lender appearing on the books of the Borrower, or if no such address
appears, at the principal place of business of the Lender. Any notice or other
communication or deliveries hereunder shall be deemed given and effective on the
earliest of (i) the date of transmission if delivered by hand or by telecopy
that has been confirmed as received by 5:00 P.M. on a business day, (ii) one
business day after being sent by nationally recognized overnight courier or
received by telecopy after 5:00 P.M. on any day, or (iii) five business days
after being sent by certified or registered mail, postage and charges prepaid,
return receipt requested.

      Section 12. Upon the occurrence and during the continuation of an Event of
Default and the declaration of the Maturity Date, the Lender shall have, in
addition to all other rights and remedies under this Agreement, this Debenture
and related documents, all other rights and remedies provided under each
applicable jurisdiction and other applicable laws, which rights shall be
cumulative.

      Section 13. This Debenture and the provisions hereof are to be construed
according to and are governed by the laws of the State of New York, without
regard to principles of conflicts of laws thereof.

                                       8
<PAGE>

      IN WITNESS WHEREOF, the Borrower has caused this Debenture to be duly
executed by a duly authorized officer as of the date first above indicated.

                                         ROOMLINX, INC.

                                         By:____________________________________
                                         Name:  Frank Elenio
                                         Title: Chief Financial Officer

                                       9
<PAGE>

                                     ANNEX A

                              NOTICE OF CONVERSION
                          To Be Executed by the Holder
                            in Order to Convert Note

      The undersigned Lender hereby elects to convert $__________ currently
outstanding and owed under the Convertible Debenture issued to [______________]
at a Conversion Price of $_______ (the "Debenture") and to purchase ___________
shares of Common Stock of RoomLinX, Inc. issuable upon conversion of such
Debenture, and requests that certificates for such securities shall be issued in
the name of:

___________________________________________________________
(please print or type name and address)

___________________________________________________________
(please insert social security or other identifying number)

and be delivered as follows:

___________________________________________________________
please print or type name and address)

___________________________________________________________
(please insert social security or other identifying number)

[NAME OF LENDER]

By:________________________________________________________

Name:
Title:

Conversion Date:___________________________________________

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