----

----

| 1. | Resignation and      Termination. |
|----|-----------------------------------|

|   | 1.1. | Gray      hereby resigns from all employment positions he currently holds with the      Company and any subsidiary of the Company, including without limitation      the positions of President and Chief Executive Officer effective as of the      Effective Date.  Gray shall remain as a member of the Board of      Directors, subject to the provisions of Section  3.5. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1.2. | The      Employment Agreement, dated as of January 1, 2006, by and between the      Company and Gray is hereby terminated in its entirety as of the Effective      Date and neither party thereto shall have any further rights or owe any      further payment, duty or obligation to the other thereunder;      notwithstanding the foregoing, (a) the non-competition obligation of Gray      set forth in Section 8 of the Employment Agreement and (b) the      non-solicitation obligation of Gray set forth in Section 9 of the      Employment Agreement shall each survive for a period of one year from the      date of this Agreement. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.1. | Cash      Payments.  Commencing as of the Effective Date, Gray      shall be entitled to the following cash  payments: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (a)    | Commencing      as of March 2009, the Company shall pay Mr. Gray a cash payment of      $54,166.66 per month, payable semi-monthly, for a period of six months,      making an aggregate payment of $325,000 under this Section 2.1(a);      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                             |
|   | (b)    | Thereafter      for a period of fifty-four (54) months, the Company shall pay to Gray a      payment of $12,500 per month, payable semi-monthly, making an aggregate      payment of $675,000 under this  Section 2.1(b).                   |

|   | 2.2. | Vesting and Exercise      of Existing Options and Restricted Stock.  On the      Effective Date, all outstanding Company stock options and shares of      restricted stock of the Company held by Gray shall immediately and fully      vest.  All outstanding Company stock options held by Gray shall      remain exercisable by Gray until March 1, 2012, notwithstanding anything      to the contrary in documents related to such option grants, and shall      expire on such date.  As of the Effective Date, Mr. Gray shall      forfeit 300,000 of the stock options currently held by  him. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3. | Consulting.  At      the Company’s sole discretion, Gray and the Company hereby agree that,      beginning on  the Effective Date through August 31, 2009, the      Company may request that Gray serve the Company in the capacity of a      consultant for the equivalent of up to two full days per      month.  Mr. Gray shall not be paid for such      consulting. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.4. | Benefits.  For      a period of Twenty-Four (24) months following the Effective Date, the      Company shall, at its sole expense, continue to maintain and provide      coverage under Gray’s existing health coverage plan.  Gray      agrees that he shall not be entitled to receive any compensation under the      Company’s paid time off (PTO) benefit program.  While Mr. Gray      remains on the Board of Directors of the Company, the Company shall      maintain for Mr. Gray his current Company e-mail  address. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.5. | Withholding.  All      payments required to be made by the Company hereunder to Gray shall be      subject to the withholding of such amounts, if any, relating to tax and      other payroll deductions as the Company may reasonably determine it must      withhold pursuant to any applicable law or  regulation. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.6. | No Duty to Mitigate      Damages.  Gray's payments and benefits under Sections      2.1, 2.2 and 2.4 of this Agreement shall be considered severance pay in      consideration of his past service and his agreement to comply with the      provisions of his Employment Agreement relating to noncompetition and as      an inducement to him to enter into and become bound by this Agreement, and      his entitlement thereto shall not be dependent upon whether or not Gray      provides further services of any type to or for the Company or any third      party. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.7 | Default.  Notwithstanding      any provision in this Agreement to the contrary, but subject to Section      11.9, in the event that the Company defaults in its obligations to provide      the payments and benefits in Sections 2.1 or 2.4, then all amounts and      benefits that otherwise would have been due and payable under the      Employment Agreement dated as of January 1, 2006 by and between the      Company and Gray, including without limitation the payments and benefits      set forth in Section 6.2.1 (less any payments previously made under this      Agreement) shall become due and payable ten (10) days after written notice      of default from Mr. Gray if such default is not  cured. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1. | Non-disclosure.  Gray      recognizes and acknowledges that he has had and will have access to      certain highly sensitive, special, unique information of the Company that      is confidential or proprietary.  Gray hereby covenants and      agrees not to use or disclose any Confidential Information (as hereinafter      defined) except for disclosures made solely (i) to authorized      representatives of the Company; or (ii) as required by any governmental,      statutory or judicial authority, provided that prior to any such      disclosure Gray shall provide the Company with notice of such requirement      as is practicable and shall cooperate with the Company in responding to      such requirement, including assisting the Company in procuring a      protective order or other modification of such required      disclosure. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2. | Confidential      Information.  For purposes of this Agreement, "ConfidentialInformation"      means any data or information with respect to the business conducted by      the Company that is material to the Company and not generally known by the      public.  To the extent consistent with the foregoing definition,      Confidential Information includes without limitation; (i) reports,      pricing, sales manuals and training manuals, selling and pricing      procedures, and financing methods of the Company, together with any      techniques utilized by the Company in designing, developing,      manufacturing, testing or marketing its products or in performing services      for clients, customers and accounts of the Company and (ii) the      business plans and financial statements, reports and projections of the      Company. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.3. | Return of      Property.  Gray covenants, agrees and acknowledges that      all Confidential Information is and shall remain the sole, exclusive and      valuable property of the Company and Gray has and shall acquire no right,      title or interests therein.  Any and all printed, typed, written      or other material which Gray may have or obtain shall be and remain the      exclusive property of the Company, and any and all material (including any      copies) shall be promptly delivered by Gray to the Company.  The      Company acknowledges that the personal property listed on Exhibit B is and shall      remain Gray’s personal property unaffected by this    Agreement. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.4. | Stock      Lock-up1.  If requested by investors in      a financing, Mr. Gray will agree in writing not to sell any shares of the      common stock of the Company owned or controlled by him, except as      follows: |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.5. | Board      Membership.  At the request of the Board at any time in      2009 in connection with a Company financing, Mr. Gray shall resign as a      member of the Board of Directors and each of its    subsidiaries. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Public Statement,      Non-disparagement. |
|----|-------------------------------------------|

|   | 5.1. | With      respect to Mr. Gray’s separation from the Company, neither Gray nor the      Company shall make any public statement other than the Approved Public      Statement set forth on Exhibit A (the      “Approved Public Statement”) or statements that are consistent with the      Approved Public Statement. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.2. | Gray      shall make no disparaging statements, whether public or private, with      regard to the Company, its current officers, employees or members of the      Board unless and to the extent specifically compelled by any governmental      agency or tribunal to make astatement. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5.3. | The      Company and the members of the Board shall make no disparaging statements,      whether public or private, about Gray unless and to the extent      specifically compelled by any government agency or tribunal to make a      statement.  In response to an inquiry, or as necessary or      appropriate to make clear Gray’s status with the Company or the      circumstances of his departure, the Company and the members of the Board      shall inform third parties that Gray is a shareholder of the Company      and/or that he is not an employee, officer, director (as applicable) or      other agent of the Company by saying that Gray remains a shareholder      and/or director of the Company and that Gray resigned voluntarily, or      other words of similar effect.  Neither the Company nor the      members of the Board shall make any statement that implies or suggests      that the reason for Gray’s separation from the Company was anything other      than Gray’s voluntary action. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Mutual Release and      Covenant Not to Sue. |
|----|----------------------------------------------|

|   | 6.1 | Release and Covenant      Not to Sue from Gray. |
|--------|-----|-------------------------------------------------|

|   | (a) | Release.  Gray      hereby releases each of the Company and its officers, employees,      directors, attorneys, agents, successors, and assigns, from each and every      right, claim, debt, demand, liability, cost, expense, and/or cause of      action, which he has or may have had against any of such released parties      as of the Effective Date, whether known or  unknown. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Covenant Not to      Sue.  Gray hereby covenants and agrees not to bring suit      against any of the Company or any of  its officers, employees,      directors, attorneys, agents, successors, and assigns based upon any claim      herein released. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Rights      Retained.  Notwithstanding anything in this Agreement to      the contrary, Gray expressly reserves his right to take action against the      Company to preserve his rights under this Agreement in the event of a      breach thereof by the Company, subject to Section 7      below. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6.2 | Release and Covenant      Not to Sue from the Company. |
|--------|-----|--------------------------------------------------------|

|   | (a) | Release.  The      Company hereby releases each of Gray and his attorneys, agents,      successors, and assigns from each and every right, claim, debt, demand,      liability, cost, expense, and/or cause of action arising out of Gray’s      service or status as an employee, officer, director, shareholder (in his      capacity as such) or representative of shareholders of the Company,      existing as of the Effective Date and whether known or      unknown. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Covenant Not to      Sue.  The Company hereby covenants and agrees not to      bring suit against each of Gray and his attorneys, agents, successors, and      assigns based upon any claim hereinreleased. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Rights      Retained.  Notwithstanding anything in this Agreement to      the contrary, the Company expressly reserves its right to take action      against Gray to preserve its rights under this Agreement in the event of a      breach thereof by Gray, subject to Section 7  below. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Arbitration.  Any      controversy or claim arising out of or relating to this Agreement, or the      breach thereof, shall be settled exclusively by single-arbitrator      arbitration, in Dallas, Texas, in accordance with the Commercial      Arbitration Rules of the American Arbitration Association then in effect,      and judgment upon the award rendered by the arbitrator may be entered in      any court having jurisdictionthereof. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Collateral.  Payments      owed to Gray by the Company pursuant to Section 2 hereof shall be      secured by, and the Company hereby grants to Gray a first priority      security interest in and to, the assets of the Company relating to      Zindaclin, including the patent rights, royalty payments, licensing      payments and milestone payments.  Any failure to pay timely any      amount due under Section 2.1(b) shall result, automatically, in the      full acceleration of all such payments (i) which are not yet paid in full,      and (ii) which do not constitute deferred compensation within the meaning      of Section 409A (as defined in Section 11.9(i), below), if such amount due      is not paid within 10 days after written notice from Gray.  With      respect to the Company, any commencement of a bankruptcy proceeding,      assignment for the benefit of creditors or the appointment of a receiver,      trustee, liquidator or other similar official shall also result,      automatically, in the full acceleration of all such payments (i) which are      not yet paid in full, and (ii) which do not constitute deferred      compensation within the meaning of Section409A. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Legal Fees and      Expenses.  Each party hereto shall pay its own legal fees      and expenses of counsel reasonably incurred by such party in connection      with the negotiation, execution and delivery of this Agreement or in      seeking in good faith to obtain any right or benefit to which such party      believes it or he is entitled under this Agreement.  In the      event of a default by the Company with respect to any payments owed to      Gray under this Agreement, the Company agrees to pay Gray any costs of      collection, including but not limited to any reasonable attorneys fees,      which shall be deemed additional payments that are secured pursuant to      Section 8 hereto. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Notices.  Any      notices required to be given under this Agreement shall be in writing and      shall be deemed given three (3) days after mailing in the continental      United States by registered or certified mail, or upon personal receipt      after delivery, telex, telecopy, or telegram, to the party entitled      thereto at the address stated below or to such changed address as the      addressee may have given by a similarnotice: |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.1. | Binding      Agreement.  This Agreement shall be binding upon and      inure to the benefit of Gray and be enforceable by his personal or legal      representatives or successors.  If Gray dies while any amounts      would still be payable to him hereunder, his rights herein shall still be      exercisable by such representatives or successors.  Such amounts      shall be paid to Gray's estate in accordance with the terms of this      Agreement.  This Agreement shall not otherwise be assignable by      Gray. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2. | Successors.  This      Agreement shall inure to and be binding upon the Company's      successors.  The Company shall require any successor to all or      substantially all of its business and/or assets by sale, merger (where the      Company is not the surviving corporation), consolidation, lease or      otherwise, by agreement in form and substance satisfactory to Gray, to      assume this Agreement expressly.  This Agreement shall not      otherwise be assignable by theCompany. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.3. | Amendment or      Modification; Waiver.  This Agreement may not be amended      or modified unless agreed to in writing by Gray and the      Company.  No waiver by either party of any breach of this      Agreement shall be deemed a waiver of any subsequent    breach. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.4. | Severability.  In      the event that any provision of this Agreement shall be determined to be      invalid or unenforceable, such provision shall be enforceable in any      jurisdiction in which valid and enforceable, and in any event the      remaining provisions shall remain in full force and effect to the fullest      extent permitted by law. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.5. | Rights      Granted.  This Agreement shall not give Gray any right to      compensation or benefits from the Company or any affiliate of the Company,      except for the rights specifically stated herein, including those certain      severance and other benefits that become payable on or after the Effective      Date. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.6. | Governing      Law.  The validity, interpretation, performance, and      enforcement of this Agreement shall be governed by and construed in      accordance with the internal laws of the State of Texas, without giving      effect to the principles of choice of law or conflicts of    law. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.7. | Counterparts.  This      Agreement may be executed in multiple counterparts, each of which shall be      deemed an original, but all of which taken together shall constitute one      and the same Agreement. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.8. | Section      Headings.  The descriptive section headings in this      Agreement have been inserted for convenience of reference only and are not      intended to be part of, or to affect the meaning or interpretation of,      this Agreement. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.9 |   | Section      409A. |
|------|--------|--------------------|

| 12. | Exclusive      Agreement.  It is agreed and understood that this      Agreement represents the entire agreement between the Company and Gray      concerning the subject matter hereof and supersedes all prior agreements      and understandings concerning Gray's rights upon the termination of his      employment. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

  

----