Remote Dynamics Inc
COMMON STOCK PURCHASE WARRANT TO PURCHASE 2,000,000 SHARES
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>4
<FILENAME>d28614exv10w2.htm
<DESCRIPTION>COMMON STOCK PURCHASE WARRANT TO PURCHASE 2,000,000 SHARES
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt"><B>VOID AFTER 5:00 P.M., NEW YORK CITY<BR>
TIME, ON SEPTEMBER 2, 2010<BR>
UNLESS EXTENDED PURSUANT TO SECTION 2 HEREOF</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE &#147;SECURITIES ACT&#148;), OR
THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. THE
SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER APPLICABLE
SECURITIES LAWS UNLESS OFFERED, SOLD OR TRANSFERRED PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Right to
 Purchase 2,000,000 Shares of<BR>
 Common Stock, par value $.01 per share
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Date: September&nbsp;2, 2005
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REMOTE DYNAMICS, INC.<BR>
STOCK PURCHASE WARRANT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt;  margin-left: 0pt; text-indent: 3%">THIS CERTIFIES THAT, for value received, SDS Capital Group SPC, Ltd., or its registered and
permitted assigns, is entitled to purchase from Remote Dynamics, Inc., a corporation organized
under the laws of the State of Delaware (the &#147;<B>Company</B>&#148;), at any time or from time to time during
the period specified in Section&nbsp;2 hereof, Two Million (2,000,000) fully paid and nonassessable
shares (the &#147;<B>Warrant Shares</B>&#148;) of the Company&#146;s common stock, par value $.01 per share (the &#147;<B>Common
Stock</B>&#148;), at an initial exercise price per share (the &#147;<B>Exercise Price</B>&#148;) equal to $1.75. The number
of Warrant Shares and the Exercise Price are subject to adjustment as provided in Section&nbsp;4 hereof.
The term &#147;<B>Warrant</B>&#148; and all references thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as so amended or
supplemented, including all Warrants issued upon transfer or exchange of this Warrant as provided
herein, and the term &#147;<B>Warrants</B>&#148; means this Warrant and the other warrants of the Company issued
pursuant to the Securities Purchase Agreement dated as of May&nbsp;31, 2005 by and among the Company and
the other signatories thereto (the &#147;<B>Securities Purchase Agreement</B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; text-indent: 3%">This Warrant is subject to the following terms, provisions and conditions:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1. <U>Exercise of Warrant</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the provisions hereof, including, without limitation, the limitations contained
in Section&nbsp;10 hereof, this Warrant may be exercised by the holder hereof, in whole or in part, by
delivering (personally, by nationally recognized overnight carrier or by confirmed facsimile
transmission) a copy of this Warrant and a completed exercise notice in the form attached hereto
(the &#147;<B>Exercise Notice</B>&#148;), to the Company during normal business hours on any business day at the
Company&#146;s principal executive offices (or such other office or agency of the Company as it may
designate by written notice to the holder hereof), and upon (i)&nbsp;payment to the Company in cash, by
certified or official bank check or by wire transfer for the account of the Company, of the
Exercise Price for the Warrant Shares specified in the Exercise Notice or (ii)&nbsp;if the holder is
effectuating a Cashless Exercise (as defined in Section&nbsp;9 hereof) pursuant to Section&nbsp;9 hereof,
delivery to the Company of a written notice of an election to effect a Cashless Exercise for the
Warrant Shares specified in the Exercise Notice. The holder shall surrender the Warrant to the
Company concurrently with the delivery of the Exercise Notice or promptly thereafter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Warrant Shares purchased upon exercise of this Warrant in accordance with this Section
1 shall be deemed to be issued to the holder hereof or the holder&#146;s designee, as the record owner
of such shares, as of the close of business on the date on which a copy of this Warrant shall have
been delivered, the completed Exercise Notice shall have been delivered, and payment shall have
been made for such shares as set forth above or, if such date is not a business day, on the next
succeeding business day. The Warrant Shares so purchased, representing the aggregate number of
shares specified in the Exercise Notice, shall be delivered to the holder hereof or the holder&#146;s
designee within a reasonable time, not exceeding two business days after the surrender of this
Warrant to the Company (the &#147;<B>Delivery Period</B>&#148;). If the Company&#146;s transfer agent is participating
in the Depository Trust Company (&#147;<B>DTC</B>&#148;) Fast Automated Securities Transfer program, and so long as
the certificates therefor do not bear a legend (pursuant to the terms of the Securities Purchase
Agreement) and the holder is not obligated to return such certificate for the placement of a legend
thereon (pursuant to the Securities Purchase Agreement), the Company shall cause its transfer agent
to electronically transmit the Warrant Shares so purchased to the holder or the holder&#146;s designee
by crediting the account of the holder or the holder&#146;s designee or its respective nominee with DTC
through its Deposit Withdrawal Agent Commission system (&#147;<B>DTC Transfer</B>&#148;). If the aforementioned
conditions to a DTC Transfer are not satisfied, the Company shall deliver to the holder or the
holder&#146;s designee physical certificates representing the Warrant Shares so purchased.
Notwithstanding the foregoing, the holder or the holder&#146;s designee may instruct the Company to
deliver to the holder or such designee physical certificates representing the Warrant Shares so
purchased in lieu of delivering such shares by way of DTC Transfer. Any certificates so delivered
shall be in such denominations as may be reasonably requested by the holder hereof or the holder&#146;s
designee, shall be registered in the name of the holder or such other name as shall be designated
by the holder and, following the date on which the Warrant Shares have been registered under the
Securities Act pursuant to that certain Registration Rights Agreement, dated as of the initial
issuance date of the Company&#146;s Series&nbsp;B Preferred Stock, by and among the Company and the other
signatories thereto (the &#147;<B>Registration Rights Agreement</B>&#148;) or otherwise may be sold by the holder
pursuant to Rule&nbsp;144 promulgated under the Securities Act (or a successor rule), shall not bear any
restrictive legend. If this Warrant shall have been exercised only in part, then the Company
shall, at its expense, at the time of delivery of such certificates, deliver to the holder a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">new Warrant representing the number of shares with respect to which this Warrant shall not
then have been exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If, at any time, a holder of this Warrant submits this Warrant, an Exercise Notice and
payment to the Company of the Exercise Price for each of the Warrant Shares specified in the
Exercise Notice (including pursuant to a Cashless Exercise), and the Company fails for any reason
(other than the reasons contemplated by Section&nbsp;10 hereof) to deliver, on or prior to the fourth
business day following the expiration of the Delivery Period for such exercise, the number of
shares of Common Stock to which the holder is entitled upon such exercise (an &#147;<B>Exercise Default</B>&#148;),
then the Company shall pay to the holder payments (&#147;<B>Exercise Default Payments</B>&#148;) for an Exercise
Default in the amount of (i) (N/365), multiplied by (ii)&nbsp;the amount by which the Market Price (as
defined in Section&nbsp;11 hereof) of the Common Stock on the date the Exercise Notice giving rise to
the Exercise Default is transmitted in accordance with this Section&nbsp;1 (the &#147;<B>Exercise Default Date</B>&#148;)
exceeds the Exercise Price in respect of such Warrant Shares, multiplied by (iii)&nbsp;the number of
shares of Common Stock the Company failed to so deliver in such Exercise Default, multiplied by
(iv) .18, where N equals the number of days from the Exercise Default Date to the date that the
Company effects the full exercise of this Warrant which gave rise to the Exercise Default. The
accrued Exercise Default Payment for each calendar month shall be paid in cash and shall be made to
the holder by the fifth day of the month following the month in which it has accrued. Nothing
herein shall limit the holder&#146;s right to pursue actual damages for the Company&#146;s failure to
maintain a sufficient number of authorized shares of Common Stock as required pursuant to the terms
of Section 3(b) hereof or to otherwise issue shares of Common Stock upon exercise of this Warrant
in accordance with the terms hereof, and the holder shall have the right to pursue all remedies
available at law or in equity (including a decree of specific performance and/or injunctive
relief).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <U>Period of Exercise</U>. This Warrant shall be exercisable at any time or from time to time
during the period (the &#147;<B>Exercise Period</B>&#148;) commencing on the six-month anniversary of the date
hereof (the &#147;<B>Commencement Date</B>&#148;) and ending at 5:00 p.m., New York City time, on the fifth
anniversary of the initial issuance of this Warrant. The Exercise Period shall automatically be
extended by one day for each day on which (a)&nbsp;the Company does not have a number of shares of
Common Stock reserved for issuance upon exercise hereof at least equal to the number of shares of
Common Stock issuable upon exercise hereof or otherwise fails to deliver shares of Common Stock in
the names set forth in Section&nbsp;1 hereof upon proper exercise hereof, or (b)&nbsp;the Warrant Shares are
not then otherwise registered for resale as required pursuant to the terms of the Registration
Rights Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <U>Certain Agreements of the Company</U>. The Company hereby covenants and agrees as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Shares to be Fully Paid</U>. All Warrant Shares shall, upon issuance in accordance
with the terms of this Warrant, be validly issued, fully paid and non-assessable and free from all
taxes, liens, claims and encumbrances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Reservation of Shares</U>. During the Exercise Period, the Company shall at all times
have authorized, and reserved for the purpose of issuance upon exercise of this Warrant, a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">sufficient number of shares of Common Stock to provide for the exercise in full of this
Warrant (without giving effect to the limitations on exercise set forth in Section&nbsp;10 hereof).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Listing</U>. The Company shall use commercially reasonable efforts to promptly secure
the listing or quotation of the shares of Common Stock issuable upon exercise of this Warrant upon
each national securities exchange or automated or electronic quotation system, if any, upon which
shares of Common Stock are then listed or quoted or become listed or quoted (subject to official
notice of issuance upon exercise of this Warrant) and shall maintain, so long as any other shares
of Common Stock shall be so listed or quoted, such listing or quotation of all shares of Common
Stock from time to time issuable upon the exercise of this Warrant; and the Company shall so list
or apply for quotation on each national securities exchange or automated or electronic quotation
system, as the case may be, and shall maintain such listing or quotation of, any other shares of
capital stock of the Company issuable upon the exercise of this Warrant if and so long as any
shares of the same class shall be listed or quoted on such national securities exchange or
automated or electronic quotation system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Certain Actions Prohibited</U>. The Company shall not, by amendment of its charter or
through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but will at all times in good
faith assist in the carrying out of all the provisions of this Warrant and in the taking of all
such action as may reasonably be requested by the holder of this Warrant in order to protect the
economic benefit inuring to the holder hereof and the exercise privilege of the holder of this
Warrant against dilution or other impairment, consistent with the tenor and purpose of this
Warrant. Without limiting the generality of the foregoing, the Company (i)&nbsp;shall not increase the
par value of any shares of Common Stock receivable upon the exercise of this Warrant above the
Exercise Price then in effect, and (ii)&nbsp;shall take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Successors and Assigns</U>. This Warrant shall be binding upon any entity succeeding
to the Company by merger, consolidation, or acquisition of all or substantially all of the
Company&#146;s assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Dilutive Issuances</U>. The Company shall not make a Dilutive Issuance, as defined in
the Certificate of Designation, Preferences and Rights of the Company&#146;s Series&nbsp;B Preferred Stock)
without first obtaining the consent of the holder of this Warrant.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <U>Antidilution Provisions</U>. During the period beginning on the date of the Securities
Purchase Agreement and ending on the termination of the Exercise Period (the &#147;<B>Adjustment Period</B>&#148;),
the Exercise Price and the number of Warrant Shares issuable hereunder shall be subject to
adjustment from time to time as provided in this Section&nbsp;4.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Stock Splits, Stock Dividends, Etc.</U> If, at any time during the Adjustment Period,
the number of outstanding shares of Common Stock is increased by a stock split, stock dividend,
combination, reclassification or other similar event, the Exercise Price in effect immediately
prior to such increase shall be proportionately reduced, or if the number of outstanding shares of
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Common Stock is decreased by a reverse stock split, combination, reclassification or other
similar event, the Exercise Price in effect immediately prior to such decrease shall be
proportionately increased.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Merger,
Consolidation, Etc</U>. If, at any time during the Adjustment Period, there
shall be (i)&nbsp;any reclassification or change of the outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination), (ii)&nbsp;any consolidation or merger of the Company with any
other entity (other than a merger in which the Company is the surviving or continuing entity and
its capital stock is unchanged), (iii)&nbsp;any sale or transfer of all or substantially all of the
assets of the Company or (iv)&nbsp;any share exchange or other transaction pursuant to which all of the
outstanding shares of Common Stock are converted into other securities or property (each of (i) -
(iv)&nbsp;above being a &#147;<B>Corporate Change</B>&#148;), then the holder hereof shall thereafter have the right to
receive upon exercise of this Warrant, in lieu of the Warrant Shares otherwise issuable, such
shares of stock, securities and/or other property as would have been issued or payable in such
Corporate Change with respect to or in exchange for the number of Warrant Shares which would have
been issuable upon exercise had such Corporate Change not taken place (without giving effect to the
limitations contained in Section&nbsp;10), and in any such case, appropriate provisions (in form and
substance reasonably satisfactory to the holder hereof) shall be made with respect to the rights
and interests of the holder to the end that the economic value of this Warrant is in no way
diminished by such Corporate Change and that the provisions hereof (including, without limitation,
in the case of any such consolidation, merger or sale in which the successor entity or purchasing
entity is not the Company, an immediate adjustment of the Exercise Price and Warrant Shares so that
the Exercise Price and Warrant Shares immediately after the Corporate Change reflects the same
relative value as compared to the value of the surviving entity&#146;s common stock that existed between
the Exercise Price and the Warrant Shares and the value of the Company&#146;s Common Stock immediately
prior to such Corporate Change) shall thereafter be applicable, as nearly as may be practicable in
relation to any shares of stock or securities thereafter deliverable upon the exercise thereof.
The Company shall not effect any Corporate Change unless (A)&nbsp;the holder hereof has received written
notice of such transaction at least 30&nbsp;days prior thereto, but in no event later than 15&nbsp;days prior
to the record date for the determination of stockholders entitled to vote with respect thereto, and
(B)&nbsp;the resulting successor or acquiring entity (if not the Company) assumes by written instrument
(in form and substance reasonable satisfactory to the holder hereof) the obligations of the Company
under this Warrant. The above provisions shall apply regardless of whether or not there would have
been a sufficient number of shares of Common Stock authorized and available for issuance upon
exercise hereof as of the date of such transaction, and shall similarly apply to successive
reclassifications, consolidations, mergers, sales, transfers or share exchanges.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Distributions</U>. If, at any time during the Adjustment Period, the Company shall
declare or make any distribution of its assets (or rights to acquire its assets) to holders of
Common Stock as a partial liquidating dividend, by way of return of capital or otherwise (including
any dividend or distribution to the Company&#146;s stockholders in cash or shares (or rights to acquire
shares) of capital stock of a subsidiary (<I>i.e., </I>a spin-off)) (a &#147;<B>Distribution</B>&#148;), then the holder
hereof shall be entitled, upon any exercise of this Warrant after the date of record for
determining stockholders entitled to such Distribution (or if no such record is taken, the date on
which such Distribution is declared or made), to receive the amount of such assets which would
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">have been payable to the holder with respect to the Warrant Shares issuable upon such exercise
(without giving effect to the limitations contained in Section&nbsp;10) had the holder hereof been the
holder of such Warrant Shares on the record date for the determination of stockholders entitled to
such Distribution (or if no such record is taken, the date on which such Distribution is declared
or made).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Convertible Securities and Purchase Rights</U>. If, at any time during the Adjustment
Period, the Company issues any securities or other instruments which are convertible into or
exercisable or exchangeable for Common Stock (&#147;<B>Convertible Securities</B>&#148;) or options, warrants or
other rights to purchase or subscribe for Common Stock or Convertible Securities (&#147;<B>Purchase
Rights</B>&#148;) pro rata to the record holders of any class of Common Stock, whether or not such
Convertible Securities or Purchase Rights are immediately convertible, exercisable or exchangeable,
then the holder hereof shall be entitled, upon any exercise of this Warrant after the date of
record for determining stockholders entitled to receive such Convertible Securities or Purchase
Rights (or if no such record is taken, the date on which such Convertible Securities or Purchase
Rights are issued), to receive the aggregate number of Convertible Securities or Purchase Rights
which the holder would have received with respect to the Warrant Shares issuable upon such exercise
(without giving effect to the limitations contained in Section&nbsp;10) had the holder hereof been the
holder of such Warrant Shares on the record date for the determination of stockholders entitled to
receive such Convertible Securities or Purchase Rights (or if no such record is taken, the date on
which such Convertible Securities or Purchase Rights were issued). If the right to exercise or
convert any such Convertible Securities or Purchase Rights would expire in accordance with their
terms prior to the exercise of this Warrant, then the terms of such Convertible Securities or
Purchase Rights shall provide that such exercise or convertibility right shall remain in effect
until 30&nbsp;days after the date the holder receives such Convertible Securities or Purchase Rights
pursuant to the exercise hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Other Action Affecting Exercise Price</U>. If, at any time during the Adjustment
Period, the Company takes any action affecting the Common Stock that would be covered by Section
4(a) through (d), but for the manner in which such action is taken or structured, which would in
any way diminish the value of this Warrant, then the Exercise Price shall be adjusted in such
manner as the Board of Directors of the Company shall in good faith determine to be equitable under
the circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Adjustment in Number of Shares</U>. Upon each adjustment of the Exercise Price
pursuant to the provisions of this Section&nbsp;4, the number of shares of Common Stock issuable upon
exercise of this Warrant at each such Exercise Price shall be adjusted by multiplying a number
equal to the Exercise Price in effect immediately prior to such adjustment by the number of shares
of Common Stock issuable upon exercise of this Warrant at such Exercise Price immediately prior to
such adjustment and dividing the product so obtained by the adjusted Exercise Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Notice of Adjustment</U>. Upon the occurrence of any event which requires any
adjustment or readjustment of the Exercise Price or change in number or type of stock, securities
and/or other property issuable upon exercise of this Warrant, then, and in each such case, the
Company shall give notice thereof to the holder hereof, which notice shall state the Exercise Price
resulting from such adjustment or readjustment and any change in the number of type of
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock, securities and/or other property issuable upon exercise of this Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is based.
Such calculation shall be certified by the chief financial officer of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>No Fractional Shares</U>. No fractional shares of Common Stock are to be issued upon
the exercise of this Warrant, but the Company shall pay a cash adjustment in respect of any
fractional share which would otherwise be issuable in an amount equal to the same fraction of the
Market Price of a share of Common Stock on the date of such exercise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Other Notices</U>. In case at any time:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the Company shall declare any dividend upon the Common Stock payable in shares of stock of
any class or make any other distribution (other than dividends or distributions payable in cash out
of retained earnings consistent with the Company&#146;s past practices with respect to declaring
dividends and making distributions) to the holders of the Common Stock;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the Company shall offer for subscription pro rata to the holders of the Common Stock any
additional shares of stock of any class or other rights;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;there shall be any capital reorganization of the Company, or reclassification of the
Common Stock, or consolidation or merger of the Company with or into, or sale of all or
substantially all of its assets to, another corporation or entity; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then, in each such case, the Company shall give to the holder of this Warrant (A)&nbsp;notice of the
date or estimated date on which the books of the Company shall close or a record shall be taken for
determining the holders of Common Stock entitled to receive any such dividend, distribution, or
subscription rights or for determining the holders of Common Stock entitled to vote in respect of
any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or
winding-up and (B)&nbsp;in the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding-up, notice of the date (or, if not then known, a
reasonable estimate thereof by the Company) when the same shall take place. Such notice shall also
specify the date on which the holders of Common Stock shall be entitled to receive such dividend,
distribution, or subscription rights or to exchange their Common Stock for stock or other
securities or property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, or winding-up, as the case may be. Such notice shall be
given at least thirty (30)&nbsp;days prior to the record date or the date on which the Company&#146;s books
are closed in respect thereto. Failure to give any such notice or any defect therein shall not
affect the validity of the proceedings referred to in clauses (i), (ii), (iii)&nbsp;and (iv)&nbsp;above.
Notwithstanding the foregoing, the Company shall publicly disclose the substance of any notice
delivered hereunder prior to delivery of such notice to the holder hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. <U>Issue Tax</U>. The issuance of certificates for Warrant Shares upon the exercise of this
Warrant shall be made without charge to the holder of this Warrant or such shares for any
</DIV>
<P align="center" style="font-size: 10pt">- 7 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">issuance tax or other costs in respect thereof, provided that the Company shall not be required to
pay any tax which may be payable in respect of any transfer involved in the issuance and delivery
of any certificate in a name other than the holder of this Warrant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. <U>No Rights or Liabilities as a Stockholder</U>. This Warrant shall not entitle the holder
hereof to any voting rights or other rights as a stockholder of the Company. No provision of this
Warrant, in the absence of affirmative action by the holder hereof to purchase Warrant Shares, and
no mere enumeration herein of the rights or privileges of the holder hereof, shall give rise to any
liability of such holder for the Exercise Price or as a stockholder of the Company, whether such
liability is asserted by the Company or by creditors of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. <U>Transfer, Exchange, Redemption and Replacement of Warrant</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Restriction on Transfer</U>. This Warrant and the rights granted to the holder hereof
are transferable, in whole or in part, upon surrender of this Warrant, together with a properly
executed assignment in the form attached hereto, at the office or agency of the Company referred to
in Section 7(e) below, <U>provided</U>, <U>however</U>, that any transfer or assignment shall be
subject to the conditions set forth in Sections 7(f) and 10 hereof and to the provisions of Section
5 of the Securities Purchase Agreement. Until due presentment for registration of transfer on the
books of the Company, the Company may treat the registered holder hereof as the owner and holder
hereof for all purposes, and the Company shall not be affected by any notice to the contrary.
Notwithstanding anything to the contrary contained herein, the registration rights described in
Section&nbsp;8 hereof are assignable only in accordance with the provisions of the Registration Rights
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Warrant Exchangeable for Different Denominations</U>. This Warrant is exchangeable,
upon the surrender hereof by the holder hereof at the office or agency of the Company referred to
in Section 7(e) below, for new Warrants of like tenor of different denominations representing in
the aggregate the right to purchase the number of shares of Common Stock which may be purchased
hereunder, each of such new Warrants to represent the right to purchase such number of shares (at
the Exercise Price therefor) as shall be designated by the holder hereof at the time of such
surrender.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Replacement of Warrant</U>. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such
loss, theft, or destruction, upon delivery of an indemnity agreement reasonably satisfactory in
form and amount to the Company, or, in the case of any such mutilation, upon surrender and
cancellation of this Warrant, the Company, at its expense, will execute and deliver, in lieu
thereof, a new Warrant of like tenor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Cancellation; Payment of Expenses</U>. Upon the surrender of this Warrant in
connection with any transfer, exchange, or replacement as provided in this Section&nbsp;7, this Warrant
shall be promptly canceled by the Company. The holder shall pay all taxes and all other expenses
(other than legal expenses, if any, incurred by the Company) and charges payable in connection with
the preparation, execution, and delivery of Warrants pursuant to this Section&nbsp;7. The Company shall
indemnify and reimburse the holder of this Warrant for all losses and damages arising as a result
of or related to any breach of the terms of this Warrant, including
</DIV>

<P align="center" style="font-size: 10pt">- 8 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">costs and expenses (including legal fees) incurred by such holder in connection with the
enforcement of its rights hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Warrant Register</U>. The Company shall maintain, at its principal executive offices
(or such other office or agency of the Company as it may designate by notice to the holder hereof),
a register for this Warrant, in which the Company shall record the name and address of the person
in whose name this Warrant has been issued, as well as the name and address of each transferee and
each prior owner of this Warrant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Transfer or Exchange Without Registration</U>. If, at the time of the surrender of
this Warrant in connection with any transfer or exchange of this Warrant, this Warrant (or, in the
case of any exercise, the Warrant Shares issuable hereunder) shall not be registered under the
Securities Act and under applicable state securities or blue sky laws, the Company may require, as
a condition of allowing such transfer or exchange, (i)&nbsp;that the holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in comparable transactions)
to the effect that such transfer or exchange may be made without registration under the Securities
Act and under applicable state securities or blue sky laws (the cost of which shall be borne by the
Company if the Company&#146;s counsel renders such an opinion, and up to $1,000 of such cost (subject to
a maximum aggregate cost of $10,000) shall be borne by the Company if the holder&#146;s counsel is
required to render such opinion), (ii)&nbsp;that the holder or transferee execute and deliver to the
Company an investment letter in form and substance acceptable to the Company and (iii)&nbsp;that the
transferee be an &#147;<B>accredited investor</B>&#148; as defined in Rule 501(a) promulgated under the Securities
Act.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. <U>Registration Rights</U>. The initial holder of this Warrant (and certain assignees thereof)
is entitled to the benefit of such registration rights in respect of the Warrant Shares as are set
forth in the Registration Rights Agreement, including the right to assign such rights to certain
assignees, as set forth therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. <U>Cashless Exercise</U>. This Warrant may be exercised at any time after the first
anniversary of the date hereof and during the remaining Exercise Period by presentation and
surrender of this Warrant to the Company at its principal executive offices with a written notice
of the holder&#146;s intention to effect a cashless exercise, including a calculation of the number of
shares of Common Stock to be issued upon such exercise in accordance with the terms hereof (a
&#147;<B>Cashless Exercise</B>&#148;). In the event of a Cashless Exercise, in lieu of paying the Exercise Price in
cash, the holder shall surrender this Warrant for that number of shares of Common Stock determined
by multiplying the number of Warrant Shares to which it would otherwise be entitled by a fraction,
the numerator of which shall be the difference between the then current Market Price of a share of
the Common Stock on the date of exercise and the Exercise Price, and the denominator of which shall
be the then current Market Price per share of Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10. <U>Restrictions on Exercise and Transfer</U>. In no event shall the holder hereof have the
right to exercise any portion of this Warrant for shares of Common Stock or to dispose of any
portion of this Warrant to the extent that such right to effect such exercise or disposition would
result in the holder and its affiliates together beneficially owning more than 9.99% of the
outstanding shares of Common Stock. For purposes of this Section&nbsp;10, beneficial ownership shall be
</DIV>
<P align="center" style="font-size: 10pt">- 9 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and
Regulation&nbsp;13D-G thereunder. The restriction contained in this Section&nbsp;10 may not be altered,
amended, deleted or changed in any manner whatsoever unless the holders of a majority of the
outstanding shares of Common Stock and the holder hereof shall approve, in writing, such
alteration, amendment, deletion or change.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11. <U>Certain Definitions</U>. For purposes of this Warrant, the following capitalized terms
shall have the respective meanings assigned to them:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&#147;<B>business day</B>&#148; means any day, other than a Saturday or Sunday or a day on which banking
institutions in the State of New York are authorized or obligated by law, regulation or executive
order to close.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&#147;<B>Market Price</B>&#148; means, for any security as of any date, the last sales price of such
security on the principal trading market where such security is listed or traded as reported by
Bloomberg Financial Markets (or a comparable reporting service of national reputation selected by
the Company and reasonably acceptable to the holder hereof if Bloomberg Financial Markets is not
then reporting closing sales prices of such security) (in any case, &#147;<B>Bloomberg</B>&#148;), or if the
foregoing does not apply, the last reported sales price of such security on a national exchange or
in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg, or, if no such price is reported for such security by Bloomberg, the average of the bid
prices of all market makers for such security as reported in the &#147;pink sheets&#148; by the National
Quotation Bureau, Inc., in each case for such date or, if such date was not a trading day for such
security, on the next preceding date which was a trading day. If the Market Price cannot be
calculated for such security as of either of such dates on any of the foregoing bases, the Market
Price of such security on such date shall be the fair market value as reasonably determined by an
investment banking firm selected by the Company and reasonably acceptable to the holder hereof,
with the costs of such appraisal to be borne by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&#147;<B>trading day</B>&#148; means any day on which the SmallCap Market or, if the Common Stock is not
then traded on the SmallCap Market, the principal national securities exchange, automated quotation
system or other trading market where the Common Stock is then listed, quoted or traded, is open for
trading.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12. <U>Miscellaneous</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Governing Law; Jurisdiction</U>. This Warrant shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in the State of Delaware. The Company irrevocably consents to the jurisdiction of the United
States federal courts and the state courts located in the County of New Castle, State of Delaware,
in any suit or proceeding based on or arising under this Warrant and irrevocably agrees that all
claims in respect of such suit or proceeding may be determined in such courts. The Company
irrevocably waives the defense of an inconvenient forum to the maintenance of such suit or
proceeding in such forum. The Company further agrees that service of process upon the Company
mailed by first class mail shall be deemed in every respect effective service of process upon the
Company in any such suit or proceeding. Nothing herein shall affect the right of the holder to
serve process in any other manner permitted by law. The Company agrees that a final
</DIV>

<P align="center" style="font-size: 10pt">- 10 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on such judgment or in any other lawful manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Construction</U>. Whenever the context requires, the gender of any word used in this
Warrant includes the masculine, feminine or neuter, and the number of any word includes the
singular or plural. Unless the context otherwise requires, all references to articles and sections
refer to articles and sections of this Warrant, and all references to schedules are to schedules
attached hereto, each of which is made a part hereof for all purposes. The descriptive headings of
the several articles and sections of this Warrant are inserted for purposes of reference only, and
shall not affect the meaning or construction of any of the provisions hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Severability</U>. If any provision of this Warrant shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant
in any other jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Entire Agreement; Amendments</U>. This Warrant contains the entire understanding of
the Company and the holder hereof with respect to the matters covered herein. Subject to any
additional express provisions of this Warrant, no provision of this Warrant may be waived other
than by an instrument in writing signed by the party to be charged with enforcement, and no
provision of this Warrant may be amended other than by an instrument in writing signed by the
Company and the holder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Notices</U>. Any notices required or permitted to be given under the terms of this
Warrant shall be sent by certified or registered mail (return receipt requested) or delivered
personally, by nationally recognized overnight carrier or by confirmed facsimile transmission, and
shall be effective five days after being placed in the mail, if mailed, or upon receipt or refusal
of receipt, if delivered personally or by nationally recognized overnight carrier or confirmed
facsimile transmission, in each case addressed to a party. The initial addresses for such
communications shall be as follows, and each party shall provide notice to the other parties of any
change in such party&#146;s address:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If to the Company:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Remote Dynamics, Inc.<BR>
1155 Kas Drive, Suite&nbsp;100<BR>
Richardson, TX 75081<BR>
Telephone: 972-301-2733<BR>
Facsimile: 972-301-2263<BR>
Attention: J. Raymond Bilbao, Esquire</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">with a copy simultaneously transmitted by like means (which transmittal<BR>
shall not constitute notice hereunder) to:</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Locke Liddell &#038; Sapp LLP<BR>
2200 Ross Avenue<BR>
Suite&nbsp;2200</DIV>


<P align="center" style="font-size: 10pt">- 11 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Dallas, TX 75201-6776<BR>
Telephone: 214-740-8570<BR>
Facsimile: 214-756-8570<BR>
Attention: Stephen L. Sapp. Esquire</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If to the holder, at such address as shall be set forth in the Warrant Register from time
to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Successors and Assigns</U>. This Warrant shall be binding upon and inure to the
benefit of the Company, the holder and their respective permitted successors and assigns. Except
as provided herein, the Company shall not assign this Warrant or its obligations hereunder. The
holder hereof may assign or transfer this Warrant and such holders rights hereunder in accordance
with Section&nbsp;7 hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Equitable Relief</U>. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the holder by vitiating the intent and purpose of this
Warrant. Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations hereunder will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Warrant, that the holder shall be entitled, in addition to
all other available remedies, to an injunction restraining any breach, without the necessity of
showing economic loss and without any bond or other security being required.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY&#093;</B>
</DIV>



<P align="center" style="font-size: 10pt">- 12 -
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF, </B>the Company has caused this Warrant to be signed by its duly authorized
officer.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>

    <TD align="left" valign="top" colspan="2"><B>REMOTE DYNAMICS, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="left" valign="top">By:</TD>
    <TD align="left" valign="top"> /s/ W. Michael Smith</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="left" valign="top">Name: </td>
    <TD align="left" valign="top">W. Michael Smith</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD align="left" valign="top">Title:</td>
    <TD align="left" valign="top">COO</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;SIGNATURE PAGE TO STOCK PURCHASE WARRANT&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt">
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF EXERCISE NOTICE</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>(To be Executed by the Holder in order to Exercise the Warrant)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">To:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Remote Dynamics, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1155 Kas Drive, Suite&nbsp;1000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Richardson, TX 75081</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Facsimile: (972)&nbsp;301-2263</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: Chief Executive Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby irrevocably exercises the right to purchase &#95;&#95;&#95; shares of the
Common Stock of Remote Dynamics, Inc., a corporation organized under the laws of the State of
Delaware (the &#147;<B>Company</B>&#148;), at the current Exercise Price of $&#95;&#95;&#95;, evidenced by the attached
Warrant, and herewith &#091;makes payment of the Exercise Price with respect to such shares in
full&#093;&#091;elects to effect a Cashless Exercise (as defined in Section&nbsp;9 of such Warrant)&#093;, all in
accordance with the conditions and provisions of said Warrant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned agrees not to offer, sell, transfer or otherwise dispose of any Common Stock
obtained on exercise of the Warrant, except under circumstances that will not result in a violation
of the Securities Act of 1933, as amended, or any state securities laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%"><FONT style="font-family: Wingdings">&#111;</FONT> The undersigned requests that the Company cause its transfer
agent to electronically transmit the Common Stock issuable pursuant
to this Exercise Notice to the account of the undersigned or its
nominee (which is &#95;&#95;&#95;) with DTC through its Deposit
Withdrawal Agent Commission System (&#147;<B>DTC Transfer</B>&#148;), provided that
such transfer agent participates in the DTC Fast Automated
Securities Transfer program.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%"><FONT style="font-family: Wingdings">&#111;</FONT> In lieu of receiving the shares of Common Stock issuable
pursuant to this Exercise Notice by way of DTC Transfer, the
undersigned hereby requests that the Company cause its transfer
agent to issue and deliver to the undersigned physical certificates
representing such shares of Common Stock.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The undersigned requests that a Warrant representing any unexercised portion hereof be issued,
pursuant to the Warrant, in the name of the Holder and delivered to the undersigned at the address
set forth below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature of Holder</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Holder (Print)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Address:</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">- 14 -
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORM OF ASSIGNMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers all the rights of the
undersigned under the within Warrant, with respect to the number of shares of Common Stock covered
thereby set forth hereinbelow, to:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Name of Assignee</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Address</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">No. of Shares</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">, and
hereby irrevocably constitutes and appoints &#95;&#95;&#95;&#95;&#95;&#95; as agent
and attorney-in-fact to transfer said Warrant on the books of the within-named corporation, with
full power of substitution in the premises.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">In the presence of
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title of Signing Officer or Agent (if any):</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Address:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Note:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The above signature should correspond
exactly with the name on the face of the
within Warrant.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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</HTML>
</TEXT>
</DOCUMENT>
