Exhibit 10.60
 Execution Copy
 TEXAS EMERGING TECHNOLOGY FUND
 AWARD AND SECURITY AGREEMENT
 BETWEEN THE STATE OF TEXAS
 AND
 1ST DETECT CORPORATION
 THIS TEXAS EMERGING TECHNOLOGY FUND AWARD AND SECURITY AGREEMENT Agreement Effective Date OOGEDT st Company
 RECITALS
   Exhibit A




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Execution Copy
   IN CONSIDERATION
 Article I
DEFINITIONS
 Defined Terms.
 A.
    
    Additional Amount  has the meaning set forth in Section 3.03.B.
    
    Agreement  has the meaning set forth in the preamble.C.
    
    Application  has the meaning set forth in Section 2.02.D.
    
    Award  means an award of monies from the OOGEDT to the Company in an amount
equal to the sum of the Initial Amount plus the Additional Amount that may be disbursed
pursuant to the terms and conditions of this Agreement.E.
    
    Collateral  has the meaning set forth in Section 4.01.F.
    
    Common Stock  has the meaning set forth in the Unit.G.
    
    Company  has the meaning set forth in the preamble.H.
    
    Company Affiliate means a person who or that directly, or indirectly through
one or more intermediaries, controls the Company or is controlled by, or is under common
control with, such a person.I.
    
    Company Associate means, as of any particular date, a current shareholder of
the Company (including a holder of common stock, preferred stock or other capital stock of
the Company), a current debtholder of the Company, and a current holder of convertible
securities or holder of any right to purchase or acquire any capital stock of the Company.J.
    
    Compliance Verification  has the meaning set forth in Section 5.05.
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Execution Copy
 K.
    
    Effective Date  has the meaning set forth in the preamble.L.
    
    Event of Default  has the meaning set forth in Section 2.07.M.
    
    GAAP  has the meaning set forth in Section 1.01(U)(vi).N.
    
    Initial Amount  has the meaning set forth in Section 3.02.O.
    
    Lien  means, with respect to any asset, any mortgage, deed of trust, pledge,
hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest or other security arrangement relating to such
asset and any other preference, priority or preferential arrangement of any kind or nature
whatsoever relating to such asset.P.
    
    Note  has the meaning set forth in Section 3.04(B).Q.
    
    Office of the Governor Economic Development and Tourism  means the Economic
Development and Tourism Division within the Office of the Governor, and any designated
representatives thereof.R.
    
    OOGEDT  has the meaning set forth in the preamble.S.
    
    Opinion Letter  has the meaning set forth in Section 3.04(C).T.
    
    Permitted Liens  means, with respect to any Person, any of the following:
 (i)
    
    Liens (1) with respect to the payment of taxes, fees, assessments or
other governmental charges or levies or (2) of suppliers, carriers, materialmen,
warehousemen, workmen or mechanics and other similar Liens, in each case imposed by
law or arising in the ordinary course of business, and, for each of the Liens in
clauses (1) and (2) above for amounts that are not yet due or that
are being contested in good faith by appropriate proceedings diligently conducted
and with respect to which adequate reserves or other appropriate provisions are
maintained on the books of such Person;(ii)
    
    Liens of a collection bank on items in the course of collection arising
under Section 4.208 of the Texas UCC or any similar section under the Uniform
Commercial Code of any other applicable state;(iii)
    
    Liens, pledges or cash deposits made in the ordinary course of
business (1) in connection with workers compensation, unemployment insurance or
other
types of social security benefits (other than any Lien imposed by ERISA), (2) to
secure the performance of bids, tenders, leases, sales or other trade contracts
(other than for the repayment of borrowed money) or (3) made in lieu of, or to
secure the performance of, surety, customs, reclamation or performance bonds (in
each case not related to judgments or litigation);
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Execution Copy
 (iv)
    
    judgment liens (not including those for the payment of taxes,
assessments or other governmental charges covered in (i) above) securing judgments
and other proceedings not greater than $25,000 and pledges or cash deposits made in
lieu of, or to secure the performance of, judgment or appeal bonds in respect of
such judgments and proceedings;(v)
    
    Liens (1) arising by reason of zoning restrictions, easements,
licenses, reservations, restrictions, covenants, rights-of-way, encroachments,
minor defects or irregularities in title (including leasehold title) and other
similar encumbrances, restrictions or limitations on the use of real property or
(2) consisting of leases, licenses or subleases granted by a lessor, licensor,
sublessor or sublicensor on its property (in each case other than capital leases)
otherwise permitted hereunder that, for each of the Liens in clauses (1)
and (2) above, do not, in the aggregate, materially (x) impair the value or
marketability of such real property or (y) interfere with the ordinary conduct of
the business conducted and proposed to be conducted at such real property;(vi)
    
    Liens of landlords and mortgagees of landlords (1) arising by statute
or under any lease or related contractual obligation entered into in the ordinary
course of business, (2) on fixtures and movable tangible property located on the
real property leased or subleased from such landlord, (3) for amounts not yet due
or that are being contested in good faith by appropriate proceedings diligently
conducted and (4) for which adequate reserves or other appropriate provisions are
maintained on the books of such Person to the extent required by generally accepted
accounting principals (GAAP);(vii)
    
    Liens arising by virtue of any statutory or common law provisions
relating to bankers Liens, rights of set-off or similar rights and remedies as to
deposit accounts or other funds maintained with a depositary or financial
institution; and(viii)
    
    the title and interest of a lessor, sublessor, licensor or sublicensor in and to
personal property leased, subleased, licensed or sublicensed, in each case
extending only to such personal property and any Liens arising from UCC Financing
Statements filed in connection therewith.
 U.
    
    Person  means any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability company, joint venture,
estate, trust, association, organization, labor union, or other entity or governmental
agency or body.V.
    
    Qualifying Liquidation Event means (a) the sale, conveyance, or other
disposition of all or substantially all of the assets of the Company and its subsidiaries
(taken as a whole) to persons who are not then Company Associates (as hereinafter defined)
or Company Affiliates (as hereinafter defined), or (b) the sale of the Companys
then-outstanding equity securities by the Companys stockholders or the Companys merger
into or consolidation with any other entity, in each such case, in which more than fifty
percent (50%) of the voting power of the Company is transferred to persons who are not then
Company Associates or Company Affiliates.
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Execution Copy
 W.
    
    Right to Purchase  has the meaning set forth in Section 3.04(B).X.
    
    SEC  means the United States Securities and Exchange Commission.Y.
    
    Secured Obligations  means all obligations of the Company and its successors
and assigns now or hereafter existing under this Agreement and the Unit (including the
Note), whether (i) for the prompt payment when due, whether at stated maturity or
otherwise) of principal, interest, costs, fees, expenses or otherwise (including the
payment of amounts which would become due but for the operation of the automatic stay under
Section 362 of the United States Bankruptcy Code, 11 U.S.C. § 362), and/or (ii) for the
prompt performance or payment when due of any other obligation of the Company and its
successors and assigns to the OOGEDT, now or hereafter owing, whether direct or indirect,
primary or secondary, fixed or contingent, joint or several, regardless of how created,
evidenced or arising.Z.
    
    Security Term  means the period commencing on the date of the disbursement
of the Initial Amount and ending on the earliest of the date on which (i) the Company has
paid all principal and interest due under the Note pursuant to the terms of this Agreement
and the Unit; (ii) the OOGEDT has fully exercised the Right to Purchase under the Unit; and
(iii) the OOGEDTs Right to Purchase expires pursuant to the terms of the Unit.AA.
    
    Texas Emerging Technology Fund  means the fund as defined under the
Chapter 490 of the Texas Government Code.BB.
    
    Texas UCC  means the Uniform Commercial Code as from time to time in effect
in the State of Texas.CC.
    
    Unit  has the meaning set forth in Section 3.04(B).DD.
    
    Unit Amendment  has the meaning set forth in Section 3.02.EE.
    
    The following terms have the meanings given to them in the Texas UCC and terms used
herein without definition that are defined in the Texas UCC have the meanings given to them
in the Texas UCC (such meanings to be equally applicable to both the singular and plural
forms of the terms defined): account, account debtor, as-extracted collateral,
certificated security, chattel paper, commercial tort claim, commodity contract,
deposit account, electronic chattel paper, equipment, farm products, fixture,
general intangible, goods, health-care-insurance receivable, instruments,
inventory, investment property, letter-of-credit right, proceeds, record,
securities account, security, supporting obligation and tangible chattel paper.
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Execution Copy
 Article II
AWARD
 Award of Monies.
 Use of Award Proceeds. Application
 Commercialization Milestones Exhibit C
 Guarantee of Commercialization or Manufacturing/Principal Place of Business.
 Use and Retention of Texas Suppliers. provided however
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Execution Copy
 Company Representations, Warranties and Covenants. Article IV
       Schedule 2.06(G)
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Execution Copy
 Schedule 2.06(H)
  Schedule 2.06(J) Schedule
2.06(J)
 Schedule 2.06(K) Schedule 2.06(K)
 Section 2.06
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Execution Copy
 Event(s) of Default. Event of Default provided however provided further
    Section 2.07(B)
 Section 2.07(B)
 Remedies. Section 2.07 Section 4.10
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Execution Copy
 Section 2.08(A)
   Notification of Event of Default.
 Termination/Modification of Award. Section 3.04 Section 3.02 Section 3.03
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Execution Copy
 Effect of Event of Default/Termination. Section 2.08(A) Section 2.07
 Right to Notice of Intellectual Property and/or Business Status. Section 2.12
 Right to Terminate upon Repayment. Section 5.01(B)
 Survival of Right to Purchase.
 Article III
DISBURSEMENT OF AWARD PROCEEDS
 Disbursement of Award. Sections 3.02 3.03 Section 3.04 Sections 3.02 3.03 Sections 3.02 3.03
 Initial Disbursement. Initial Amount
 Second Disbursement. Additional Amount Exhibit C
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Execution Copy
 Conditions Precedent to Disbursement of Award.
 Sections 3.02 3.03
 Exhibit B Unit Note Right to Purchase clause (ii) clause (ii)
 Opinion Letter
 1.
    
    The Company is a corporation validly existing and in good
standing under the laws of its state of incorporation.2.
    
    The Company has the requisite corporate power and
authority to own, operate and lease its properties and to carry on its
business as presently conducted.3.
    
    The Company is duly qualified to transact business (as
either a domestic corporation or a foreign corporation) in the State of
Texas.4.
    
    The Company has the corporate power to enter into this
Agreement and to issue the Unit and the securities issuable upon exercise of
the Right to Purchase under the Unit.5.
    
    All issued and outstanding equity securities of the
Company have been duly authorized and validly issued and are fully-paid and
non-assessable.6.
    
    The execution and delivery of the Award and Security
Agreement and the Investment Unit does not violate the Companys certificate
of formation and bylaws (or other similar governing documents) or any of the
material agreements specifically identified in the opinion as Reviewed
Agreements.7.
    
    Assuming timely filing of all relevant federal and state
securities filings necessary to perfect any relevant registration
exemptions, the issuance of the Unit and the equity securities issuable upon
exercise of the Right to Purchase under the Unit do not require registration
under applicable state and federal securities laws and regulations.
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Execution Copy
    (i)
    
    Prepare for execution by the parties an amendment to the Unit in the
form attached hereto as Exhibit D (the Unit Amendment)
reflecting the Additional Amount;(ii)
    
    furnish the OOGEDT with a statement containing the information
required in Section 3.04(B)(ii) above with respect to the percentage as of
the date of the disbursement of the Additional Amount of the Common Stock that the
amended Right to Purchase represents as determined on a fully diluted basis; and(iii)
    
    furnish the OOGEDT with a certificate executed by the Chief Executive
Officer or Chief Financial Officer of the Company on behalf of the Company
certifying, as of the date of the disbursement of the Additional Amount, that (1)
the percentage set forth in the statement provided pursuant to Section
3.04(F)(ii) above is true and correct and (2) the representations and
warranties made by the Company in Section 2.06 (as modified in any
schedule or exhibit hereto) are true and correct in all material respects.
 Section 3.04 Section 3.04(F)
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Execution Copy
 Article IV
MISCELLANEOUS
 Term of Agreement. Section 5.18
 Record Keeping and Reporting.
 Unit Records/Information.
 Certification Relating to Undocumented Workers
 Compliance Verification Reporting Compliance Verification
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Execution Copy
 Liability.
 Indemnification by the Company and Hold Harmless.
 EXPRESS NEGLIGENCE. THE INDEMNITY SET FORTH IN THIS AGREEMENT IS INTENDED TO BE
ENFORCEABLE AGAINST THE COMPANY AND ITS SUCCESSORS AND ASSIGNS IN ACCORDANCE WITH THE EXPRESS TERMS
AND SCOPE HEREOF NOTWITHSTANDING TEXAS EXPRESS NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT WOULD
PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE OF THE NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE
OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF THE OOGEDT AND/OR ITS AGENTS, OFFICERS,
EMPLOYEES AND ASSIGNS.
 Relationship of the Parties.
 Binding Effect and Assignment.
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Execution Copy
 Waiver.
 Entire Agreement.
 Applicable Law and Venue.
  Dispute Resolution.
 Informal Meetings
 Non-binding Mediation
 Publicity.
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Execution Copy
 No Waiver of Sovereign Immunity.
 Severability.
 Survival of Promises.
 Force Majeure.
 Counterparts.
 Notices.
  
 with a concurrent copy to
 
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Execution Copy
  
 provided however
 Construction
 Headings
 Schedules and Exhibits.
 Saturdays, Sundays, Holidays, etc.
 Additional Requirements.
 NONE.
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Execution Copy
 IN TESTIMONY HEREOF,
 The State of Texas
    
    
    
    1st Detect CorporationRaymond C. Sullivan
    
    
    
    John PorterChief of Staff
    
    
    
    Chief Executive OfficerOffice of the GovernorDate
    
    
    
    Date
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Execution Copy
 Exhibits and Schedules
 ExhibitsExhibit A
    
    
    
    Approval Letter from Governor, Lieutenant Governor and SpeakerExhibit B
    
    
    
    Investment UnitExhibit C
    
    
    
    MilestonesExhibit D
    
    
    
    Form of Unit AmendmentSchedulesSchedule 2.06(G)
    
    
    
    Title to AssetsSchedule 2.06(H)
    
    
    
    Related Party TransactionSchedule 2.06(J)
    
    
    
    SubsidiariesSchedule 2.06(K)
    
    
    
    Organizational InformationSchedule 4.09
    
    
    
    Financing Statements




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Execution Copy
 Exhibit A  Letter from Governor, Lieutenant Governor and Speaker Approving Award to the
Company from the Texas Emerging Technology Fund




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Execution Copy
 Exhibit B  Investment Unit




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Execution Copy
 Exhibit C  Milestones
 1.
    
    Optimize ion trap architecture.
 
    
    Show that the mass range is greater than 50  400 Atomic Mass Units (amu).
    
    Show that the resolution (Full Width Half Mass) is less than 1 amu.
 2.
    
    Demonstrate prototype microntroller board.
 
    
    Show that on-board microcontroller can control Mass Spectrometer (MS).
    
    MS can operate independent of laptop and generate spectra.
 3.
    
    Demonstrate device control software.
 
    
    Show that user can input all parameters to control mass specifications.
 
    
    Voltages (trap, detector).
    
    Timing points.
    
    End cap tickle frequency.
 
    
    Show that instrument responds to user inputs.
 4.
    
    Demonstrate detector amplifier.
 
    
    Show spectrum with S/N of greater than 10 using internal amplifier.
 5.
    
    Build and demonstrate prototype ion trap.
 
    
    Demonstrate instrument in portable enclosure that meets specs above.
 6.
    
    Demonstrate calibration hardware.
 
    
    Show that when instrument is calibrated (startup or user controlled) a spectra
for PFTBA (or given calibrant gas) is shown on instrument.




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Execution Copy
 Exhibit D  Form of Unit Amendment




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Execution Copy
 Schedule 2.06(G)  Title to Property




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Execution Copy
 Schedule 2.06(H)  Related Party Transactions




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Execution Copy
 Schedule 2.06(J)  Subsidiaries
 Section 2.06(J)




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Execution Copy
 Schedule 2.06(K)  Organizational Information
 State of Incorporation: Delaware
Legal Name: 1st Detect Corporation
State of Executive Offices: Texas




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Execution Copy
 Schedule 4.09  Financing Statements