COVENANT TO ADJUST
 
This Covenant to Adjust (this “Agreement”) is entered into as of November ___,
2005, by and between ITEC ENVIRONMENTAL GROUP, INC., a Delaware corporation (the
“Company”) and each certain purchaser (each a “Purchaser” and together the
“Purchasers”) with reference to the following:
 
The Company is issuing Common Stock (the “Common Stock”) to the Purchasers
pursuant to that certain Common Stock Purchase Agreement (“Purchase Agreement”)
for a negotiated price of $0.17 per share (the “Original Purchase Price”).

NOW, THEREFORE, the parties agree as follows:

1. The Original Purchase Price shall be adjusted as follows:

 
(i)
If the Efficiency Condition (as defined below) is not satisfied on or prior to
January 1, 2006, the Original Purchase Price shall be reduced to $0.15 per
share.

 
(ii)
If the Efficiency Condition is not satisfied on or prior to February 1, 2006,
the Original Purchase Price shall be reduced to $0.13 per share.

 
(iii)
If the Efficiency Condition is not satisfied on or prior to March 1, 2006, the
Original Purchase Price shall be reduced to $0.11 per share.

 
For purposes of this section, the “Efficiency Condition” will be satisfied when
the Company’s plant is operational and processing material using the ECO2TM
System at a rate of at least to process 75,000 pounds of material per month
measured over ten (10) consecutive business days while achieving at a 90% level
of purity and cleanliness for the processed material.

2. Any reduction in the Original Purchase Price with respect to any Purchaser
shall be implemented, at the option of such Purchaser: (i) without reducing such
Purchaser’s aggregate purchase price, by the issuance of additional shares, or
(ii) without increasing the number of shares purchased by such Purchaser, by the
refund of the excess Original Purchaser Price theretofore paid.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.
 

       
ITEC ENVIRONMENTAL GROUP, INC.,
a Delaware Corporation
 
   
   
    By:  
 

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  Name:
 

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  Title:
 

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AGREED AND ACCEPTED:
   
   
   
  PURCHASER:
 

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      By:  
 

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Name:
 

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Title:
 

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