Document:

EMPLOYMENT
        AGREEMENT

      

      THIS
        AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH

      MAY
        BE ENFORCED BY THE PARTIES.

      

      EMPLOYMENT
        AGREEMENT dated this 13th day of October 2005 by and between THE JON ASHTON
        CORPORATION, a Texas corporation ("Company"), and MARK TRIMBLE
        ("Employee").

      

      RECITALS:

      

      WHEREAS,
        the Company and its affiliates are engaged in the business of providing
        comprehensive low-voltage products and services to facilitate the creation
        and
        operation of “smart home” applications.

      

      WHEREAS,
        the Employee is presently providing services to the Company in the capacity
        of
        President.

      

      WHEREAS,
        Employee is employed by the Company in a confidential relationship wherein
        Employee, in the course of his employment with the Company, will become familiar
        with and aware of information as to the specific manner of doing business
        and
        the customers of the Company and its affiliates and future plans with respect
        thereto, all of which will be established and maintained at great expense
        to the
        Company; this information is a trade secret and constitutes the valuable
        goodwill of the Company.

      

      WHEREAS,
        Employee recognizes that the Company's business is dependent upon a number
        of
        trade secrets, including secret processes, techniques, methods and data.
        The
        protection of the trade secrets is of critical importance to the
        Company.

      

      WHEREAS,
        the Company will sustain great loss and damage if during the term of this
        Agreement or Employee's employment with the Company, or for a period of one
        (1)
        year immediately following the termination of the Agreement or Employee's
        employment, for whatever reason, Employee should violate the provisions of
        Paragraphs 3 or 4 of this Agreement. Further, monetary damages for such losses
        would be extremely difficult to measure.

      

      WHEREAS,
        the Company and Employee desire to evidence the terms of employment of the
        Employee.

      

      NOW,
        THEREFORE, in consideration of the mutual promises, terms, covenants and
        conditions set forth herein and the performance of each, it is hereby agreed
        as
        follows:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        I

      Employment
        and Duties

      

      A.
         
        The
        Company hereby employs Employee as its President. Additional or different
        duties, titles or positions, however, may be assigned to Employee or may
        be
        taken from Employee from time to time by the Board of Directors ("Board")
        of the
        Company. Employee hereby accepts this employment upon the terms and conditions
        herein contained and agrees to devote his time, attention and efforts to
        promote
        and further the business and services of the Company. Employee shall faithfully
        adhere to, execute and fulfill all policies established by the
        Company.

      

      B.
         
        Employee
        shall perform such duties, assume such responsibilities and devote such time,
        attention and energy to the business of the Company as the Board shall from
        time
        to time require and shall not, during the term of his employment hereunder,
        be
        engaged in any other business activity pursued for gain, profit or other
        pecuniary advantage if such activity interferes with Employee's duties and
        responsibilities hereunder. However, the foregoing limitations shall not
        be
        construed as prohibiting Employee from making personal investments in such
        form
        or manner as will neither require his services in the operation or affairs
        of
        the companies or enterprises in which such investments are made nor violate
        the
        terms of Paragraphs 3 or 4 hereof.

      

      C.
         
        All
        funds
        received by Employee on behalf of the Company, if any, shall be held in trust
        for the Company and shall be delivered to the Company as soon as
        practicable.

      

      ARTICLE
        II

      Compensation

      

      2.01    Salary.
        From and
        after the effective date of this Agreement, the Employee shall receive a
        salary
        ("Salary") from the Company in an amount shown on Exhibit
        A
        attached
        hereto. Upon recommendation of the Company’s Board, and subject to the approval
        of a majority in interest of shares of Series A Preferred Stock then
        outstanding, from time to time, the Employee’s Salary may be increased. The
        Employee's Salary shall be payable in accordance with the Company’s ordinary pay
        practices.

      

      2.02     Expense
        Reimbursement.
        The
        Company shall reimburse Employee for all reasonable travel, entertainment
        and
        other expenses related to his employment by or promotion of the Company in
        accordance with the Company’s usual expense reimbursement policies and
        procedures as in effect from time to time.

      

      2.03     Bonuses.
        The
        Employee shall be entitled to receive bonuses from time to time in accordance
        with the bonus plan described on Exhibit
        A
        attached
        hereto.

      

      2.04     Plan
        Participation.
        The
        Employee shall be entitled to participate in any and all stock option, stock
        bonus, pension, profit sharing, retirement or other similar plans adopted
        by the
        Company.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      2.05     Other.
        The
        Employee shall be entitled to the monthly auto allowance described on
Exhibit
        A
        and such
        fringe benefits as the Company shall establish for its employees generally
        which
        shall include with respect to the Employee at least two weeks paid vacation
        annually, group medical insurance and such other benefits as the Company
        shall
        adopt, subject to the discretion of the Company to add or delete such standard
        benefits as the Board deems appropriate, from time to time.

      

      ARTICLE
        III

      Non-Competition
        Agreement

      

      A.      
         Employee
        will not, during the period of this Agreement or of his employment by or
        with
        the Company, whichever period is longer, and for a period of one (1) year
        immediately following the termination of this Agreement or his employment,
        whichever is longer, for any reason whatsoever, directly or indirectly, for
        himself or on behalf of or in conjunction with any other person, persons,
        company, partnership, corporation or business of whatever nature (i) call
        upon
        any customer of the Company (including, but not limited to, any customer
        obtained for the Company by Employee) for the purpose of soliciting or selling
        any products or services in competition with those of the Company or its
        affiliates; (ii) call upon any employee of the Company or any of its affiliates
        for the purpose or with the intent of enticing them away from or out of the
        employ of the Company or any reason whatever; (iii) establish, enter it,
        be
        employed by or, advise, consult with or become a part of, any company,
        partnership, corporation or other business entity or venture, or in any way
        engage in business for himself or for others, in competition with the Company
        or
        its affiliates within one hundred (100) miles of the home office of the Company
        and/or any affiliated company location, such location having a permanent
        and
        known facility wherein the Employee has served in any capacity and wherever
        Employee has performed duties or had management responsibility on behalf
        of the
        Company or its affiliates; or (iv) during or after the term of his employment
        with the Company, disclose the Company's customers or any other trade secrets
        of
        the Company whether in existence or proposed, to any person, firm, partnership,
        corporation or business for any reason or purpose whatsoever.

      

      B.      
         Because
        of the difficulty of measuring economic losses to the Company and its affiliates
        as a result of his breach of the foregoing covenant and because of the immediate
        and irreparable damage that would be caused to the Company and its affiliates
        for which it would have no other adequate remedy, Employee agrees that the
        foregoing covenant may be enforced by the Company and its affiliates in the
        event of breach by him by injunctions and restraining orders.

      

      C.      
         It
        is
        agreed by the parties that the foregoing covenants in this Paragraph 3 are
        necessary to protect the goodwill and business interests of the Company and
        its
        affiliates and impose a reasonable restraint on Employee in light of the
        activities and business of the Company and its affiliates on the date of
        the
        execution of this Agreement and the future plans of the Company; but it is
        also
        the intent of the Company and Employee that such covenants be construed and
        enforced in accordance with the activities and business of the Company and
        its
        affiliates on the date of the termination of the employment of
        Employee.

       

      
        
          
          

        

        
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      D.      
         The
        covenants in this Paragraph 3 are severable and separate and the
        unenforceability of any specific covenant shall not affect the provisions
        of any
        other covenant. Moreover, in the event any court of competent jurisdiction
        shall
        determine that the scope, time or territorial restrictions set forth are
        unreasonable, then it is the intention of the parties that such restrictions
        be
        enforced to the fullest extent which the court deems reasonable and the
        Agreement shall thereby be reformed.

       

      E.      
         All
        of
        the covenants in this Paragraph 3 shall be construed as an agreement independent
        of any other provision in this Agreement and the existence of any claim or
        cause
        of action of Employee against the Company or its affiliates, whether predicated
        on this Agreement or otherwise, shall not constitute a defense to the
        enforcement by the Company of such covenants. It is specifically agreed that
        the
        period of one (1) year stated at the beginning of this Paragraph 3, during
        which
        the agreements and covenants of Employee made in this Paragraph 3 shall be
        effective, shall be computed by excluding from such computation any time
        during
        which Employee is in violation of any provision of this Paragraph 3 and any
        time
        during which there is pending in any court of competent jurisdiction any
        action
        (including any appeal from any final judgment) brought by any person, whether
        or
        not a party to this Agreement, in which action the Company or its affiliates
        seeks to enforce the agreements and covenants of Employee or in which any
        person
        contests the validity of such agreements and covenants or their unenforceability
        or seeks to avoid their performance or enforcement.

      

      ARTICLE
        IV

      Non-Disclosure
        Agreement and Proprietary Information.

      

      A.      
         The
        Employee recognizes and acknowledges that the information, techniques,
        processes, formulas, developments, experimental work, work in progress,
        business, list of the Company's customers and any other trade secret or other
        secret or confidential information relating to Company's business as they
        may
        exist from time to time are valuable, special and unique assets of Company's
        business. In addition, Employee recognizes that Company is continually engaged
        in research and development of new inventions and improvements to the
        information, techniques, processes, formulas, developments, trade secrets,
        and
        other secrets and confidential matters relating to Company's business.
        Therefore, Employee agrees as follows:

      

      1.     That
        Employee will hold in strictest confidence and not disclose, reproduce, publish
        or use in any manner, whether during or subsequent to his employment, without
        the express authorization of the Board of Directors of the Company, any
        information, manufacturing technique, process, business customer lists, trade
        secrets or any other secrets or confidential matter relating to any aspect
        of
        the Company's business as designated from time to time by the Board of Directors
        of Company, except as such disclosure or use may be required in connection
        with
        Employee's work for the Company.

      

      2.     That
        upon
        request or at the time of leaving the employ of the Company the Employee
        will
        deliver to the Company, and not keep or deliver to anyone else, any and all
        notes, memoranda, documents and, in general, any and all material relating
        to
        the Company's business.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      3.     The
        Employee shall (without any additional compensation) promptly disclose in
        writing to the Board of Directors of the Company all ideas, formulas, programs,
        systems, devices, processes, business concepts, discoveries and inventions
        (hereinafter referred to collectively as "discoveries"), whether or not
        patentable, which the Employee, while employed by the Company, conceives,
        makes,
        develops, acquires or reduces to practice, whether alone or with others and
        whether during or after usual working hours, and which are related to the
        Company's business or interest, or are used or usable by the Company, or
        arise
        out of or in connection with the duties performed by the Employee hereunder;
        and
        the Employee hereby transfers and assigns to the Company, all rights, title
        and
        interest in and to said discoveries, including any and all domestic and foreign
        contractual agreements entered into by Employee during the term of this
        Agreement and any renewals thereof. On request of the Company, the Employee
        shall (without any additional compensation), from time to time during or
        after
        the expiration or termination of their employment, execute such further
        instruments (including, without limitation, royalties, licenses and/or interest
        whatsoever and assignments thereof) and do all such other acts and things
        as may
        be deemed necessary or desirable by the Company to protect and/or enforce
        its
        rights in respect of said discoveries. All expenses of filing and/or prosecuting
        any interests in such discovery shall be borne by the Company, but the Employee
        shall cooperate in filing and/or prosecuting any such interest or violation
        in
        rights thereto.

      

      4.     That
        the
        Board of Directors of the Company may from time to time designate other subject
        matters requiring confidentiality and secrecy which shall be deemed to be
        covered by the terms of this Agreement.

      

      B.    In
        the
        event of a breach or threatened breach by the Employee of the provisions
        of this
        Paragraph 4, the Company shall be entitled to an injunction:

      

      1.     Restraining
        the Employee from disclosing, in whole or in part, any information as described
        above or from rendering any services to any person, firm, corporation
        association or other entity to whom such information, in whole or in part,
        has
        been disclosed or is threatened to be disclosed; and/or

      

      2.     Requiring
        that Employee deliver to Company all information, documents, notes, memoranda
        and any and all discoveries or other material as described above upon Employee's
        leave of the employ of the Company. Nothing herein shall be construed as
        prohibiting the Company from pursuing other remedies available to the Company
        for such breach or threatened breach, including the recovery of damages from
        the
        Employee.

      

      
        
          
          

        

        
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      ARTICLE
        V

      Term;
        Terminations

      

      5.01
           Term. The
        term
        of this Agreement shall begin on the date herein first set forth and continue
        until December 31, 2010, unless further extended or sooner terminated as
        herein
        provided.

      

      5.02
           Termination. This
        Agreement and Employee's employment shall be terminated immediately upon
        the
        occurrence of any one of the following events:

      

      A.    The
        death
        of Employee.

      

      B.    The
        termination of the Agreement by the Company for "cause" after 30 days written
        notice ("Notice of Termination") to Employee. "Cause" for purposes hereof
        shall
        consist of the following: (i) the willful and continuous failure of the Employee
        to substantially perform the Employee’s duties to the Company (other than any
        failure that results from the employee’s having become mentally or physically
        disabled or any actual or anticipated failure that results from the occurrence
        of events constituting “Good Reason” for termination by the Employee) within 30
        days after notice demanding substantial performance, which notice shall
        specifically identify the duties that the Employee failed to substantially
        perform, is given to the Employee by the Company; or (ii) the Employee’s
        willfully engaging in conduct that the Employee knows to be materially injurious
        to the Company.

      

      C.    The
        Employee’s disability. “Disability” for purposes hereof means a physical or
        mental infirmity which, in the opinion of a physician selected by the Company,
        (i) shall prevent the Employee from earning a reasonable livelihood with
        the
        Company, (ii) can be expected to result in death or which has lasted or can
        be
        expected to last for a continuous period of not less than 12 months and (iii)
        did not result from alcoholism or addiction to narcotics.

      

      D.    The
        termination of the Agreement by the Employee for Good Reason. “Good Reason” for
        purposes hereof shall mean (i) a failure by the Company to comply with any
        material provision of this Agreement which has not been cured within ten
        (10)
        days after notice of such noncompliance has been given by the Employee to
        the
        Company, or (ii) any purported termination of the Employee's employment by
        the
        Company which is not effected pursuant to the provisions hereof (and for
        purposes of this Agreement no such purported termination shall be
        effective).

      

      E.    The
        resignation of the Employee without “Good Reason.”

      

      F.    In
        the
        event the Company terminates, or attempts to terminate, the employment of
        the
        Employee other than as provided above, or the Company otherwise is in breach
        of
        the terms of this Agreement, upon determination of a court of competent
        jurisdiction or an arbitration or other similar panel that such breach has
        occurred, the Employee shall be entitled to receive from the Company, and
        the
        Company agrees to pay or reimburse the Employee for, all legal fees, costs
        and
        other damages, including back-pay and benefits if applicable, incurred as
        a
        result of such breach or wrongful termination.

       

      
        
          
          

        

        
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      5.03   Compensation
        Upon Termination or During Disability.

      

      A.    If
        the
        Employee's employment is terminated by his death pursuant to Section 5.02A,
        the
        Company shall pay to the Employee's spouse, or if he leaves no spouse, to
        his
        estate, commencing on the next succeeding day which is the fifteenth day
        or last
        day of the month, as the case may be, and semimonthly thereafter on the
        fifteenth and last days of each month, until a total of six payments has
        been
        made, an amount on each payment date equal to the semimonthly salary payment
        payable to the Employee pursuant to Section 2.01 hereof at the time of his
        death.

      

      B.    If
        the
        Employee's employment shall be terminated for cause pursuant to Section 5.02B,
        the Company shall pay the Employee his full salary through the date of
        termination, at the rate in effect at the time Notice of Termination is given,
        plus all outstanding expenses payable pursuant to section 2.02 hereof and
        the
        Company shall have no further obligations to the Employee under this
        Agreement.

      

      C.    If
        the
        Employee’s employment shall terminate as a result of disability pursuant to
        Section 5.02C hereof, the Company shall pay the Employee his full salary
        through
        the date of termination at the rate in effect at the date of termination,
        plus
        all outstanding expenses payable pursuant to section 2.02 hereof. During
        any
        period that the Employee fails to perform his duties hereunder as a result
        of
        incapacity due to physical or mental illness ("disability period"), the Employee
        shall continue to receive his full salary at the rate then in effect for
        such
        period until his employment is terminated pursuant to section 5.02C hereof,
        provided that payments so made to the Employee shall be reduced by the sum
        of
        the amounts, if any, payable to the Employee at or prior to the time of any
        such
        payment under disability benefit plans of the Company and which were not
        previously applied to reduce any such payment.

      

      D.    If
        the
        Employee shall terminate his employment for Good Reason pursuant to Section
        5.02D, for any reason other than death or disability, then:

      

      1.    the
        Company shall pay to the Employee the Salary accrued through the termination
        date but not previously paid to the Employee;

      

      2.    the
        Company shall pay to the Employee a lump sum cash amount equal to the total
        cash
        Salary payments which would otherwise be payable hereunder through the end
        of
        the term of this Agreement;

      

      3.    all
        of
        the Employee's outstanding awards of Company stock and outstanding options
        to
        purchase Company stock shall become fully exercisable and nonforfeitable;
        and

      

      
        
          
          

        

        
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      4.    the
        Company (at its sole expense) shall take the following actions:

      

      a.    throughout
        the end of the term of this Agreement (notwithstanding termination), the
        Company
        shall maintain in effect employee benefit programs that are substantially
        similar to the benefit plans in which the Employee was a participant immediately
        before the termination date; and

      

      b.    the
        Company shall arrange for the Employee's uninterrupted participation through
        the
        end of the term of this Agreement in each of such benefit plans or substantially
        similar employee benefit programs.

      

      5.    It
        is the
        intent of the Company and the Employee that any payment under this Section
        5.03D
        shall be in an amount equal to, but not exceeding, the maximum amount payable
        without constituting an “excess parachute payment” under Section 280G(b) of the
        Internal Revenue Code.

      

      E.    If
        the
        Employee shall terminate his employment for other than Good Reason pursuant
        to
        Section 5.02E, for any reason other than death or disability, the Company
        shall
        pay the Employee his full salary through the date of termination, at the
        rate in
        effect at the time Notice of Termination is given, plus all outstanding expenses
        payable pursuant to section 2.02 hereof and the Company shall have no further
        obligations to the Employee under this Agreement.

      

      F.    The
        Employee shall not be required to mitigate the amount of any payment or other
        benefit required to be paid to the Employee pursuant to this Agreement, whether
        by seeking other employment or otherwise, nor shall the amount of any such
        payment or other benefit be reduced on account of any compensation earned
        by the
        Employee as a result of employment by another person.

      

      G. Upon
        payment by the Company to the Employee of the amounts and other benefits
        required to be paid pursuant to the foregoing provisions of this Section
        5.03,
        the Company shall no longer be obligated to pay any other amounts or benefits
        to
        the Employee, other than benefits that, at the time of termination of the
        Employee's employment by the Company, had vested in the Employee as a result
        of
        the Employee's participation in any profit sharing, savings, retirement,
        or
        pension plan of the Company. If the Employee's employment by the Company
        shall
        have been terminated as a result of the Employee's death, the benefits otherwise
        required to be paid to the Employee pursuant to the foregoing provisions
        of this
        Section 5 shall be paid to the executor or administrator of the estate of
        the
        Employee. Each payment required to be made to the Employee pursuant to the
        foregoing provisions of this Section 5 shall be made by check drawn on an
        account of the Company at a bank located in the United States of America
        and
        (ii) shall be paid (x) if the Employee's employment by the Company was
        terminated as a result of the Employee's death, the Employee's disability
        or the
        Employee's retirement, not more than 30 days immediately following the date
        of
        the occurrence of that event, and (y) if the Employee's employment by the
        Company was terminated for any other reason, not more than 10 days immediately
        following the Termination Date.

      

      
        
          
          

        

        
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      ARTICLE
        VI

      Representations
        of Employee

      

      Employee
        has represented and hereby represents and warrants to the Company that he
        is not
        subject to any restriction or non-competition covenant in favor of a former
        employer or any other person or entity and that the execution of this Agreement
        by Employee and his employment by the Company or its affiliates and the
        performance of his duties hereunder will not violate or be a breach of any
        agreement with a former employer or any other person or entity. Further,
        Employee agrees to indemnify the Company and its affiliates for any claim,
        including, but not limited to, attorney's fees and expenses of investigation,
        by
        any such third party that such third party may now have or may hereafter
        come to
        have against the Company or its affiliates based upon or arising out of any
        non-competition agreement or invention and secrecy agreement between Employee
        and such third party.

      

      ARTICLE
        VII

      Miscellaneous

      

      7.01    Complete
        Agreement.
        This
        Agreement is not a promise of future employment. There are no oral
        representations, understandings or agreements with the Company or any of
        its
        officers, directors or representatives covering the same subject matter as
        this
        Agreement. This written Agreement is the final, complete and exclusive statement
        and expression of the agreement between the Company and Employee and of all
        the
        terms of this Agreement and it cannot be varied, contradicted or supplemented
        by
        evidence of any prior or contemporaneous oral or written agreements. Upon
        the
        effective date of this agreement, any prior agreements relating to the Company's
        employment of Employee shall be terminated and superseded in its entirety.
        This
        written agreement may not be later modified except by a further writing signed
        by the Company and Employee, and no term of this Agreement may be waived
        except
        by writing signed by the party waiving the benefit of such terms.

      

      7.02    No
        Waiver.
        No
        waiver by the parties hereto of any default or breach of any term, condition
        or
        covenant of this Agreement shall be deemed to be a waiver of any subsequent
        default or breach of the same or any other term, condition or covenant contained
        herein.

      

      7.03    Assignment;
        Binding Effect.
        Employee
        understands that he has been selected for employment by the Company on the
        basis
        of his personal qualifications, experience and skills. Employee agrees,
        therefore, that this Agreement and the rights to his services may be assigned
        by
        the Company at any time without notice to him, but that he cannot assign
        all or
        any portion of this Agreement. Subject to the preceding two sentences, this
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective heirs, successors and assigns. It is further understood
        and
        agreed that the Company may be merged or consolidated with another entity
        and
        that any such entity shall automatically succeed to the rights, powers and
        duties of the Company hereunder.

      

      
        
          
          

        

        
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      7.04    Notice.
        Whenever
        any notice is required hereunder, it shall be given in writing addressed
        as
        follows:

       

      
        
          	
                  To
                    the Company:

                	
                  THE
                    JON ASHTON CORPORATION

                
	 	
                  5150
                    Franz Rd, Suite 100

                
	 	
                  Katy,
                    Texas 77493

                
	 	 
	
                  To
                    Employee:

                	
                  MARK
                    TRIMBLE

                
	 	
                  ____________________

                
	 	
                  ____________________

                

        

      

       

      Notice
        shall be deemed given and effective three (3) days after the deposit in the
        United States mail of a writing addressed as above and sent first class mail,
        certified, return receipt requested, or when actually received. Either party
        may
        change the address for notice by notifying the other party of such change
        in
        accordance with this Section 7.04.

      

      7.05    Severability;
        Headings.
        If any
        portion of this Agreement is held invalid or inoperative, the other portions
        of
        this Agreement shall be deemed valid and operative and, so far as is reasonable
        and possible, effect shall be given to the intent manifested by the portion
        held
        invalid or inoperative. The paragraph headings herein are for reference purposes
        only and are not intended in any way to describe, interpret, define or limit
        the
        extent or intent of this Agreement or of any part hereof.

      

      7.06    Arbitration.
        Any
        controversy or claim arising out of or relating to this Agreement or the
        breach
        thereof shall be settled by arbitration in the City of Houston, Texas in
        accordance with the rules then existing of the American Arbitration Association
        and judgment upon the award may be entered in any Court having jurisdiction
        thereof.

      

      7.07    Governing
        Law.
        This
        Agreement shall in all respects be construed according to the laws of the
        State
        of Texas.

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement as of the day and
        date
        herein first set forth.

       

      
        	
                 

                ATTEST:

                 

                ________________________

                 

                 

                
                  ATTEST:

                   

                   

                   
/s/                                                   

                

              	
                THE
                  JON ASHTON CORPORATION

                 

                By:    
                   /s/
                  John Peper

                Title:  
                  Vice President        
                  

                

                EMPLOYEE:

                 

                /s/
                  Mark Trimble

                Mark
                  Trimble

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

      

      Compensation

      

      2.01    Salary

      

      2005
        -
        $58,200 (prorated)

      2006
        -
        $58,200

      2007
        -
        $64,200

      2008
        -
        $70,200

      2009
        -
        $76,200

      2010
        -
        $82,200

      

      2.03    Bonuses

      

      -
        Revenue
        and EBITDA Bonuses

      

      Maximum
        eligible bonuses as follows:

      

      
        	 	 	
                Revenue
                  Bonus

              	 	
                EBITDA
                  Bonus

              	 	
                Total
                  Bonus

              	 
	
                2006

              	 	
                $

              	
                30,000

              	 	
                $

              	
                15,000

              	 	
                $

              	
                45,000

              	 
	
                2007

              	 	 	
                30,000

              	 	 	
                25,000

              	 	 	
                55,000

              	 
	
                2008

              	 	 	
                30,000

              	 	 	
                30,000

              	 	 	
                60,000

              	 
	
                2009

              	 	 	
                30,000

              	 	 	
                35,000

              	 	 	
                65,000

              	 
	
                2010

              	 	 	
                30,000

              	 	 	
                40,000

              	 	 	
                70,000

              	 

      

      

      Bonuses
        determined based on a combination of meeting revenue targets and EBITDA targets
        set forth below (based off of the latest projections provided by APT). Maximum
        bonuses paid upon achieving 105% of revenue targets and 105% of EBITDA targets.
        Minimum bonuses paid upon achieving 90% of revenue targets and 90% of EBITDA
        targets. Bonus scales between minimum and maximum bonus based on achieving
        90%,
        92.5%, 95%, 97.5%, 100% and 105% of targets in which case bonuses are 15%,
        23%,
        35%, 48%, 65% and 100% of Maximum. Advances against revenue bonuses are made
        on
        a quarterly basis (based on achieving % of annual target revenues cumulatively
        at 20.5%, 44.0%, and 70% for each of the first 3 quarters). At year-end any
        unpaid revenue bonus is paid and the EBITDA bonus, if any, is paid. In the
        event
        that advances against revenue bonuses are in excess of the revenue bonus
        as
        measured at year-end, such excess shall be offset (i) first, against any
        EBITDA
        Bonus then payable, and (ii) then, to the extent not offset fully by any
        EBITDA
        Bonus, any remaining excess advances shall be offset against Salary ratably
        over
        a three-month period beginning with the first pay check following the
        determination of an unrecovered excess advance.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      Revenue
        and EBITDA targets for purposes of determining bonuses are as
        follows:

      

      
        	 	 	
                Revenue
                  Target

              	 	
                EBITDA
                  Target

              	 
	
                2006

              	 	
                $

              	
                1,608,500

              	 	
                $

              	
                164,000

              	 
	
                2007

              	 	 	
                2,362,500

              	 	 	
                252,500

              	 
	
                2008

              	 	 	
                3,236,500

              	 	 	
                353,500

              	 
	
                2009

              	 	 	
                4,644,500

              	 	 	
                549,000

              	 
	
                2010

              	 	 	
                6,579,000

              	 	 	
                920,000

              	 

      

      

      -
        Extraordinary Results Bonus:

      

      If
        revenues are 120% of Revenue Target and EBITDA is 150% of EBITDA Target,
        in any
        year, an additional bonus is paid at year-end in an amount equal to 20% of
        EBITDA in excess of target.

      

      *
        * * *
        *

      

      For
        purposes of computing the EBITDA Bonus and Extraordinary Results Bonus, EBITDA
        shall be computed after payment of the Revenue Target Bonus and giving pro
        forma
        effect to payment of the EBITDA Target Bonus. 

      

      All
        bonuses will be payable within ten days after the completion of the audit
        of the
        Company’s financial statements for each calendar year. EBITDA shall be computed
        based on the application of generally accepted accounting principles on a
        consistent basis and in a manner consistent with that utilized in establishing
        the Revenue and EBITDA Targets.

      

      2.05    Auto
        Allowance

       

      $500
        per
        month

       

      
        
          
          

        

        
          12EMPLOYMENT
      AGREEMENT

    

    THIS
      AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH

    MAY
      BE ENFORCED BY THE PARTIES.

    

    EMPLOYMENT
      AGREEMENT dated this 13th day of October 2005 by and between THE JON ASHTON
      CORPORATION, a Texas corporation ("Company"), and JOHN PEPER
      ("Employee").

    

    RECITALS:

    

    WHEREAS,
      the Company and its affiliates are engaged in the business of providing
      comprehensive low-voltage products and services to facilitate the creation
      and
      operation of “smart home” applications.

    

    WHEREAS,
      the Employee is presently providing services to the Company in the capacity
      of
      Vice President.

    

    WHEREAS,
      Employee is employed by the Company in a confidential relationship wherein
      Employee, in the course of his employment with the Company, will become familiar
      with and aware of information as to the specific manner of doing business and
      the customers of the Company and its affiliates and future plans with respect
      thereto, all of which will be established and maintained at great expense to
      the
      Company; this information is a trade secret and constitutes the valuable
      goodwill of the Company.

    

    WHEREAS,
      Employee recognizes that the Company's business is dependent upon a number
      of
      trade secrets, including secret processes, techniques, methods and data. The
      protection of the trade secrets is of critical importance to the
      Company.

    

    WHEREAS,
      the Company will sustain great loss and damage if during the term of this
      Agreement or Employee's employment with the Company, or for a period of one
      (1)
      year immediately following the termination of the Agreement or Employee's
      employment, for whatever reason, Employee should violate the provisions of
      Paragraphs 3 or 4 of this Agreement. Further, monetary damages for such losses
      would be extremely difficult to measure.

    

    WHEREAS,
      the Company and Employee desire to evidence the terms of employment of the
      Employee.

    

    NOW,
      THEREFORE, in consideration of the mutual promises, terms, covenants and
      conditions set forth herein and the performance of each, it is hereby agreed
      as
      follows:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      I

    Employment
      and Duties

    

    A. The
      Company hereby employs Employee as its Vice President. Additional or different
      duties, titles or positions, however, may be assigned to Employee or may be
      taken from Employee from time to time by the Board of Directors ("Board") of
      the
      Company. Employee hereby accepts this employment upon the terms and conditions
      herein contained and agrees to devote his time, attention and efforts to promote
      and further the business and services of the Company. Employee shall faithfully
      adhere to, execute and fulfill all policies established by the
      Company.

    

    B. Employee
      shall perform such duties, assume such responsibilities and devote such time,
      attention and energy to the business of the Company as the Board shall from
      time
      to time require and shall not, during the term of his employment hereunder,
      be
      engaged in any other business activity pursued for gain, profit or other
      pecuniary advantage if such activity interferes with Employee's duties and
      responsibilities hereunder. However, the foregoing limitations shall not be
      construed as prohibiting Employee from making personal investments in such
      form
      or manner as will neither require his services in the operation or affairs
      of
      the companies or enterprises in which such investments are made nor violate
      the
      terms of Paragraphs 3 or 4 hereof.

    

    C. All
      funds
      received by Employee on behalf of the Company, if any, shall be held in trust
      for the Company and shall be delivered to the Company as soon as
      practicable.

    

    ARTICLE
      II

    Compensation

    

    2.01   Salary.
      From and
      after the effective date of this Agreement, the Employee shall receive a salary
      ("Salary") from the Company in an amount shown on Exhibit
      A
      attached
      hereto. Upon recommendation of the Company’s Board, and subject to the approval
      of a majority in interest of shares of Series A Preferred Stock then
      outstanding, from time to time, the Employee’s Salary may be increased. The
      Employee's Salary shall be payable in accordance with the Company’s ordinary pay
      practices.

    

    2.02   Expense
      Reimbursement.
      The
      Company shall reimburse Employee for all reasonable travel, entertainment and
      other expenses related to his employment by or promotion of the Company in
      accordance with the Company’s usual expense reimbursement policies and
      procedures as in effect from time to time.

    

    2.03   Bonuses.
      The
      Employee shall be entitled to receive bonuses from time to time in accordance
      with the bonus plan described on Exhibit
      A
      attached
      hereto.

    

    2.04   Plan
      Participation.
      The
      Employee shall be entitled to participate in any and all stock option, stock
      bonus, pension, profit sharing, retirement or other similar plans adopted by
      the
      Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.05   Other.
      The
      Employee shall be entitled to the use of a Company auto or an auto allowance
      as
      described on Exhibit
      A
      and such
      fringe benefits as the Company shall establish for its employees generally
      which
      shall include with respect to the Employee at least two weeks paid vacation
      annually, group medical insurance and such other benefits as the Company shall
      adopt, subject to the discretion of the Company to add or delete such standard
      benefits as the Board deems appropriate, from time to time.

    

    ARTICLE
      III

    Non-Competition
      Agreement

    

    A. Employee
      will not, during the period of this Agreement or of his employment by or with
      the Company, whichever period is longer, and for a period of one (1) year
      immediately following the termination of this Agreement or his employment,
      whichever is longer, for any reason whatsoever, directly or indirectly, for
      himself or on behalf of or in conjunction with any other person, persons,
      company, partnership, corporation or business of whatever nature (i) call upon
      any customer of the Company (including, but not limited to, any customer
      obtained for the Company by Employee) for the purpose of soliciting or selling
      any products or services in competition with those of the Company or its
      affiliates; (ii) call upon any employee of the Company or any of its affiliates
      for the purpose or with the intent of enticing them away from or out of the
      employ of the Company or any reason whatever; (iii) establish, enter it, be
      employed by or, advise, consult with or become a part of, any company,
      partnership, corporation or other business entity or venture, or in any way
      engage in business for himself or for others, in competition with the Company
      or
      its affiliates within one hundred (100) miles of the home office of the Company
      and/or any affiliated company location, such location having a permanent and
      known facility wherein the Employee has served in any capacity and wherever
      Employee has performed duties or had management responsibility on behalf of
      the
      Company or its affiliates; or (iv) during or after the term of his employment
      with the Company, disclose the Company's customers or any other trade secrets
      of
      the Company whether in existence or proposed, to any person, firm, partnership,
      corporation or business for any reason or purpose whatsoever.

    

    B. Because
      of the difficulty of measuring economic losses to the Company and its affiliates
      as a result of his breach of the foregoing covenant and because of the immediate
      and irreparable damage that would be caused to the Company and its affiliates
      for which it would have no other adequate remedy, Employee agrees that the
      foregoing covenant may be enforced by the Company and its affiliates in the
      event of breach by him by injunctions and restraining orders.

    

    C. It
      is
      agreed by the parties that the foregoing covenants in this Paragraph 3 are
      necessary to protect the goodwill and business interests of the Company and
      its
      affiliates and impose a reasonable restraint on Employee in light of the
      activities and business of the Company and its affiliates on the date of the
      execution of this Agreement and the future plans of the Company; but it is
      also
      the intent of the Company and Employee that such covenants be construed and
      enforced in accordance with the activities and business of the Company and
      its
      affiliates on the date of the termination of the employment of
      Employee.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    D. The
      covenants in this Paragraph 3 are severable and separate and the
      unenforceability of any specific covenant shall not affect the provisions of
      any
      other covenant. Moreover, in the event any court of competent jurisdiction
      shall
      determine that the scope, time or territorial restrictions set forth are
      unreasonable, then it is the intention of the parties that such restrictions
      be
      enforced to the fullest extent which the court deems reasonable and the
      Agreement shall thereby be reformed.

     

    E. All
      of
      the covenants in this Paragraph 3 shall be construed as an agreement independent
      of any other provision in this Agreement and the existence of any claim or
      cause
      of action of Employee against the Company or its affiliates, whether predicated
      on this Agreement or otherwise, shall not constitute a defense to the
      enforcement by the Company of such covenants. It is specifically agreed that
      the
      period of one (1) year stated at the beginning of this Paragraph 3, during
      which
      the agreements and covenants of Employee made in this Paragraph 3 shall be
      effective, shall be computed by excluding from such computation any time during
      which Employee is in violation of any provision of this Paragraph 3 and any
      time
      during which there is pending in any court of competent jurisdiction any action
      (including any appeal from any final judgment) brought by any person, whether
      or
      not a party to this Agreement, in which action the Company or its affiliates
      seeks to enforce the agreements and covenants of Employee or in which any person
      contests the validity of such agreements and covenants or their unenforceability
      or seeks to avoid their performance or enforcement.

    

    ARTICLE
      IV

    Non-Disclosure
      Agreement and Proprietary Information. 

    

    A. The
      Employee recognizes and acknowledges that the information, techniques,
      processes, formulas, developments, experimental work, work in progress,
      business, list of the Company's customers and any other trade secret or other
      secret or confidential information relating to Company's business as they may
      exist from time to time are valuable, special and unique assets of Company's
      business. In addition, Employee recognizes that Company is continually engaged
      in research and development of new inventions and improvements to the
      information, techniques, processes, formulas, developments, trade secrets,
      and
      other secrets and confidential matters relating to Company's business.
      Therefore, Employee agrees as follows:

    

    1. That
      Employee will hold in strictest confidence and not disclose, reproduce, publish
      or use in any manner, whether during or subsequent to his employment, without
      the express authorization of the Board of Directors of the Company, any
      information, manufacturing technique, process, business customer lists, trade
      secrets or any other secrets or confidential matter relating to any aspect
      of
      the Company's business as designated from time to time by the Board of Directors
      of Company, except as such disclosure or use may be required in connection
      with
      Employee's work for the Company.

    

    2. That
      upon
      request or at the time of leaving the employ of the Company the Employee will
      deliver to the Company, and not keep or deliver to anyone else, any and all
      notes, memoranda, documents and, in general, any and all material relating
      to
      the Company's business.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3. The
      Employee shall (without any additional compensation) promptly disclose in
      writing to the Board of Directors of the Company all ideas, formulas, programs,
      systems, devices, processes, business concepts, discoveries and inventions
      (hereinafter referred to collectively as "discoveries"), whether or not
      patentable, which the Employee, while employed by the Company, conceives, makes,
      develops, acquires or reduces to practice, whether alone or with others and
      whether during or after usual working hours, and which are related to the
      Company's business or interest, or are used or usable by the Company, or arise
      out of or in connection with the duties performed by the Employee hereunder;
      and
      the Employee hereby transfers and assigns to the Company, all rights, title
      and
      interest in and to said discoveries, including any and all domestic and foreign
      contractual agreements entered into by Employee during the term of this
      Agreement and any renewals thereof. On request of the Company, the Employee
      shall (without any additional compensation), from time to time during or after
      the expiration or termination of their employment, execute such further
      instruments (including, without limitation, royalties, licenses and/or interest
      whatsoever and assignments thereof) and do all such other acts and things as
      may
      be deemed necessary or desirable by the Company to protect and/or enforce its
      rights in respect of said discoveries. All expenses of filing and/or prosecuting
      any interests in such discovery shall be borne by the Company, but the Employee
      shall cooperate in filing and/or prosecuting any such interest or violation
      in
      rights thereto.

    

    4. That
      the
      Board of Directors of the Company may from time to time designate other subject
      matters requiring confidentiality and secrecy which shall be deemed to be
      covered by the terms of this Agreement.

    

    B. In
      the
      event of a breach or threatened breach by the Employee of the provisions of
      this
      Paragraph 4, the Company shall be entitled to an injunction:

    

    1. Restraining
      the Employee from disclosing, in whole or in part, any information as described
      above or from rendering any services to any person, firm, corporation
      association or other entity to whom such information, in whole or in part,
      has
      been disclosed or is threatened to be disclosed; and/or

    

    2. Requiring
      that Employee deliver to Company all information, documents, notes, memoranda
      and any and all discoveries or other material as described above upon Employee's
      leave of the employ of the Company. Nothing herein shall be construed as
      prohibiting the Company from pursuing other remedies available to the Company
      for such breach or threatened breach, including the recovery of damages from
      the
      Employee.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      V

    Term;
      Terminations

    

    5.01   Term. The
      term
      of this Agreement shall begin on the date herein first set forth and continue
      until December 31, 2010, unless further extended or sooner terminated as herein
      provided.

    

    5.02   Termination. This
      Agreement and Employee's employment shall be terminated immediately upon the
      occurrence of any one of the following events:

    

    A. The
      death
      of Employee.

    

    B. The
      termination of the Agreement by the Company for "cause" after 30 days written
      notice ("Notice of Termination") to Employee. "Cause" for purposes hereof shall
      consist of the following: (i) the willful and continuous failure of the Employee
      to substantially perform the Employee’s duties to the Company (other than any
      failure that results from the employee’s having become mentally or physically
      disabled or any actual or anticipated failure that results from the occurrence
      of events constituting “Good Reason” for termination by the Employee) within 30
      days after notice demanding substantial performance, which notice shall
      specifically identify the duties that the Employee failed to substantially
      perform, is given to the Employee by the Company; or (ii) the Employee’s
      willfully engaging in conduct that the Employee knows to be materially injurious
      to the Company.

    

    C. The
      Employee’s disability. “Disability” for purposes hereof means a physical or
      mental infirmity which, in the opinion of a physician selected by the Company,
      (i) shall prevent the Employee from earning a reasonable livelihood with the
      Company, (ii) can be expected to result in death or which has lasted or can
      be
      expected to last for a continuous period of not less than 12 months and (iii)
      did not result from alcoholism or addiction to narcotics.

    

    D. The
      termination of the Agreement by the Employee for Good Reason. “Good Reason” for
      purposes hereof shall mean (i) a failure by the Company to comply with any
      material provision of this Agreement which has not been cured within ten (10)
      days after notice of such noncompliance has been given by the Employee to the
      Company, or (ii) any purported termination of the Employee's employment by
      the
      Company which is not effected pursuant to the provisions hereof (and for
      purposes of this Agreement no such purported termination shall be
      effective).

    

    E. The
      resignation of the Employee without “Good Reason.”

    

    F. In
      the
      event the Company terminates, or attempts to terminate, the employment of the
      Employee other than as provided above, or the Company otherwise is in breach
      of
      the terms of this Agreement, upon determination of a court of competent
      jurisdiction or an arbitration or other similar panel that such breach has
      occurred, the Employee shall be entitled to receive from the Company, and the
      Company agrees to pay or reimburse the Employee for, all legal fees, costs
      and
      other damages, including back-pay and benefits if applicable, incurred as a
      result of such breach or wrongful termination.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    5.03   Compensation
      Upon Termination or During Disability.

    

    A. If
      the
      Employee's employment is terminated by his death pursuant to Section 5.02A,
      the
      Company shall pay to the Employee's spouse, or if he leaves no spouse, to his
      estate, commencing on the next succeeding day which is the fifteenth day or
      last
      day of the month, as the case may be, and semimonthly thereafter on the
      fifteenth and last days of each month, until a total of six payments has been
      made, an amount on each payment date equal to the semimonthly salary payment
      payable to the Employee pursuant to Section 2.01 hereof at the time of his
      death.

    

    B. If
      the
      Employee's employment shall be terminated for cause pursuant to Section 5.02B,
      the Company shall pay the Employee his full salary through the date of
      termination, at the rate in effect at the time Notice of Termination is given,
      plus all outstanding expenses payable pursuant to section 2.02 hereof and the
      Company shall have no further obligations to the Employee under this
      Agreement.

    

    C. If
      the
      Employee’s employment shall terminate as a result of disability pursuant to
      Section 5.02C hereof, the Company shall pay the Employee his full salary through
      the date of termination at the rate in effect at the date of termination, plus
      all outstanding expenses payable pursuant to section 2.02 hereof. During any
      period that the Employee fails to perform his duties hereunder as a result
      of
      incapacity due to physical or mental illness ("disability period"), the Employee
      shall continue to receive his full salary at the rate then in effect for such
      period until his employment is terminated pursuant to section 5.02C hereof,
      provided that payments so made to the Employee shall be reduced by the sum
      of
      the amounts, if any, payable to the Employee at or prior to the time of any
      such
      payment under disability benefit plans of the Company and which were not
      previously applied to reduce any such payment.

    

    D. If
      the
      Employee shall terminate his employment for Good Reason pursuant to Section
      5.02D, for any reason other than death or disability, then:

    

    1. the
      Company shall pay to the Employee the Salary accrued through the termination
      date but not previously paid to the Employee;

    

    2. the
      Company shall pay to the Employee a lump sum cash amount equal to the total
      cash
      Salary payments which would otherwise be payable hereunder through the end
      of
      the term of this Agreement;

    

    3. all
      of
      the Employee's outstanding awards of Company stock and outstanding options
      to
      purchase Company stock shall become fully exercisable and nonforfeitable;
      and

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    4. the
      Company (at its sole expense) shall take the following actions:

    

    a. throughout
      the end of the term of this Agreement (notwithstanding termination), the Company
      shall maintain in effect employee benefit programs that are substantially
      similar to the benefit plans in which the Employee was a participant immediately
      before the termination date; and

    

    b. the
      Company shall arrange for the Employee's uninterrupted participation through
      the
      end of the term of this Agreement in each of such benefit plans or substantially
      similar employee benefit programs.

    

    5. It
      is the
      intent of the Company and the Employee that any payment under this Section
      5.03D
      shall be in an amount equal to, but not exceeding, the maximum amount payable
      without constituting an “excess parachute payment” under Section 280G(b) of the
      Internal Revenue Code.

    

    E. If
      the
      Employee shall terminate his employment for other than Good Reason pursuant
      to
      Section 5.02E, for any reason other than death or disability, the Company shall
      pay the Employee his full salary through the date of termination, at the rate
      in
      effect at the time Notice of Termination is given, plus all outstanding expenses
      payable pursuant to section 2.02 hereof and the Company shall have no further
      obligations to the Employee under this Agreement.

    

    F. The
      Employee shall not be required to mitigate the amount of any payment or other
      benefit required to be paid to the Employee pursuant to this Agreement, whether
      by seeking other employment or otherwise, nor shall the amount of any such
      payment or other benefit be reduced on account of any compensation earned by
      the
      Employee as a result of employment by another person.

    

    G. Upon
      payment by the Company to the Employee of the amounts and other benefits
      required to be paid pursuant to the foregoing provisions of this Section 5.03,
      the Company shall no longer be obligated to pay any other amounts or benefits
      to
      the Employee, other than benefits that, at the time of termination of the
      Employee's employment by the Company, had vested in the Employee as a result
      of
      the Employee's participation in any profit sharing, savings, retirement, or
      pension plan of the Company. If the Employee's employment by the Company shall
      have been terminated as a result of the Employee's death, the benefits otherwise
      required to be paid to the Employee pursuant to the foregoing provisions of
      this
      Section 5 shall be paid to the executor or administrator of the estate of the
      Employee. Each payment required to be made to the Employee pursuant to the
      foregoing provisions of this Section 5 shall be made by check drawn on an
      account of the Company at a bank located in the United States of America and
      (ii) shall be paid (x) if the Employee's employment by the Company was
      terminated as a result of the Employee's death, the Employee's disability or
      the
      Employee's retirement, not more than 30 days immediately following the date
      of
      the occurrence of that event, and (y) if the Employee's employment by the
      Company was terminated for any other reason, not more than 10 days immediately
      following the Termination Date.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VI

    Representations
      of Employee

    

    Employee
      has represented and hereby represents and warrants to the Company that he is
      not
      subject to any restriction or non-competition covenant in favor of a former
      employer or any other person or entity and that the execution of this Agreement
      by Employee and his employment by the Company or its affiliates and the
      performance of his duties hereunder will not violate or be a breach of any
      agreement with a former employer or any other person or entity. Further,
      Employee agrees to indemnify the Company and its affiliates for any claim,
      including, but not limited to, attorney's fees and expenses of investigation,
      by
      any such third party that such third party may now have or may hereafter come
      to
      have against the Company or its affiliates based upon or arising out of any
      non-competition agreement or invention and secrecy agreement between Employee
      and such third party.

    

    ARTICLE
      VII

    Miscellaneous

    

    7.01   Complete
      Agreement.
      This
      Agreement is not a promise of future employment. There are no oral
      representations, understandings or agreements with the Company or any of its
      officers, directors or representatives covering the same subject matter as
      this
      Agreement. This written Agreement is the final, complete and exclusive statement
      and expression of the agreement between the Company and Employee and of all
      the
      terms of this Agreement and it cannot be varied, contradicted or supplemented
      by
      evidence of any prior or contemporaneous oral or written agreements. Upon the
      effective date of this agreement, any prior agreements relating to the Company's
      employment of Employee shall be terminated and superseded in its entirety.
      This
      written agreement may not be later modified except by a further writing signed
      by the Company and Employee, and no term of this Agreement may be waived except
      by writing signed by the party waiving the benefit of such terms.

    

    7.02   No
      Waiver.
      No
      waiver by the parties hereto of any default or breach of any term, condition
      or
      covenant of this Agreement shall be deemed to be a waiver of any subsequent
      default or breach of the same or any other term, condition or covenant contained
      herein.

    

    7.03   Assignment;
      Binding Effect.
      Employee
      understands that he has been selected for employment by the Company on the
      basis
      of his personal qualifications, experience and skills. Employee agrees,
      therefore, that this Agreement and the rights to his services may be assigned
      by
      the Company at any time without notice to him, but that he cannot assign all
      or
      any portion of this Agreement. Subject to the preceding two sentences, this
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective heirs, successors and assigns. It is further understood
      and
      agreed that the Company may be merged or consolidated with another entity and
      that any such entity shall automatically succeed to the rights, powers and
      duties of the Company hereunder.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    7.04   Notice.
      Whenever
      any notice is required hereunder, it shall be given in writing addressed as
      follows:

     

    
      	 	
               To
                the Company:

            	 THE JON ASHTON CORPORATION
	 	 	 5150 Franz Rd, Suite 100
	 	 	 Katy, Texas 77493
	 	 	 
	 	
               To
                Employee:

            	 JOHN PEPER
	 	 	 ____________________
	 	 	 ____________________
	 	 	 

    

    

    

    Notice
      shall be deemed given and effective three (3) days after the deposit in the
      United States mail of a writing addressed as above and sent first class mail,
      certified, return receipt requested, or when actually received. Either party
      may
      change the address for notice by notifying the other party of such change in
      accordance with this Section 7.04.

    

    7.05   Severability;
      Headings.
      If any
      portion of this Agreement is held invalid or inoperative, the other portions
      of
      this Agreement shall be deemed valid and operative and, so far as is reasonable
      and possible, effect shall be given to the intent manifested by the portion
      held
      invalid or inoperative. The paragraph headings herein are for reference purposes
      only and are not intended in any way to describe, interpret, define or limit
      the
      extent or intent of this Agreement or of any part hereof.

    

    7.06   Arbitration.
      Any
      controversy or claim arising out of or relating to this Agreement or the breach
      thereof shall be settled by arbitration in the City of Houston, Texas in
      accordance with the rules then existing of the American Arbitration Association
      and judgment upon the award may be entered in any Court having jurisdiction
      thereof.

    

    7.07   Governing
      Law.
      This
      Agreement shall in all respects be construed according to the laws of the State
      of Texas.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      date
      herein first set forth.

    

      
        	 	 
	 	
                THE
                  JON ASHTON CORPORATION

              
	
                ATTEST:

              	 
	 	
                By:      
                  Mark Trimble

              
	
                ________________________

              	
                Title:   
                  President    

              
	 	 
	 	
                EMPLOYEE:

              
	
                ATTEST:

              	 
	 	
                /s/
                  John Peper

              
	 	
                John
                  Peper

              
	
                  
                  /s/                                               
                                                                 
                  

              	 

      

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    

    EXHIBIT
      A

    

    Compensation

    

    2.01   Salary

    

    2005
      -
      $34,200 (prorated)

    2006
      -
      $34,200

    2007
      -
      $40,200

    2008
      -
      $46,200

    2009
      -
      $52,200

    2010
      -
      $58,200

    

    2.03   Bonuses

    

    -
      Revenue
      and EBITDA Bonuses

    

    Maximum
      eligible bonuses as follows:

    

      
        	 	 	
                Revenue
                  Bonus

              	 	
                EBITDA
                  Bonus

              	 	
                Total
                  Bonus

              	 
	
                2006

              	 	
                $

              	
                20,000

              	 	
                $

              	
                15,000

              	 	
                $

              	
                35,000

              	 
	
                2007

              	 	 	
                20,000

              	 	 	
                20,000

              	 	 	
                40,000

              	 
	
                2008

              	 	 	
                20,000

              	 	 	
                25,000

              	 	 	
                45,000

              	 
	
                2009

              	 	 	
                20,000

              	 	 	
                30,000

              	 	 	
                50,000

              	 
	
                2010

              	 	 	
                20,000

              	 	 	
                35,000

              	 	 	
                55,000

              	 

      

    

    

    Bonuses
      determined based on a combination of meeting revenue targets and EBITDA targets
      set forth below (based off of the latest projections provided by APT). Maximum
      bonuses paid upon achieving 105% of revenue targets and 105% of EBITDA targets.
      Minimum bonuses paid upon achieving 90% of revenue targets and 90% of EBITDA
      targets. Bonus scales between minimum and maximum bonus based on achieving
      90%,
      92.5%, 95%, 97.5%, 100% and 105% of targets in which case bonuses are 15%,
      23%,
      35%, 48%, 65% and 100% of Maximum. Advances against revenue bonuses are made
      on
      a quarterly basis (based on achieving % of annual target revenues cumulatively
      at 20.5%, 44.0%, and 70% for each of the first 3 quarters). At year-end any
      unpaid revenue bonus is paid and the EBITDA bonus, if any, is paid. In the
      event
      that advances against revenue bonuses are in excess of the revenue bonus as
      measured at year-end, such excess shall be offset (i) first, against any EBITDA
      Bonus then payable, and (ii) then, to the extent not offset fully by any EBITDA
      Bonus, any remaining excess advances shall be offset against Salary ratably
      over
      a three-month period beginning with the first pay check following the
      determination of an unrecovered excess advance.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    Revenue
      and EBITDA targets for purposes of determining bonuses are as
      follows:

    

      
        	 	 	
                Revenue
                  Target

              	 	
                EBITDA
                  Target

              	 
	
                2006

              	 	
                $

              	
                1,608,500

              	 	
                $

              	
                164,000

              	 
	
                2007

              	 	 	
                2,362,500

              	 	 	
                252,500

              	 
	
                2008

              	 	 	
                3,236,500

              	 	 	
                353,500

              	 
	
                2009

              	 	 	
                4,644,500

              	 	 	
                549,000

              	 
	
                2010

              	 	 	
                6,579,000

              	 	 	
                920,000

              	 

      

    

     

    -
      Extraordinary Results Bonus:

    

    If
      revenues are 120% of Revenue Target and EBITDA is 150% of EBITDA Target, in
      any
      year, an additional bonus is paid at year-end in an amount equal to 20% of
      EBITDA in excess of target.

    

    *
      * * *
      *

    

    For
      purposes of computing the EBITDA Bonus and Extraordinary Results Bonus, EBITDA
      shall be computed after payment of the Revenue Target Bonus and giving pro
      forma
      effect to payment of the EBITDA Target Bonus. 

    

    All
      bonuses will be payable within ten days after the completion of the audit of
      the
      Company’s financial statements for each calendar year. EBITDA shall be computed
      based on the application of generally accepted accounting principles on a
      consistent basis and in a manner consistent with that utilized in establishing
      the Revenue and EBITDA Targets.

    

    2.05   Auto
      Allowance

     

    Use
      of
      Company automobile or $500 per month auto allowance, at the discretion of the
      Company.

    

    
      
        
        

      

      
        12

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