Document:

Exhibit 10.44

                      IN THE UNITED STATES BANKRUPTCY COURT
                          EASTERN DISTRICT OF ARKANSAS
                              LITTLE ROCK DIVISION

IN RE:   CAPITOL DEVELOPMENT                             CASE NO. 4:00-bk-43142M
         OF ARKANSAS, INC.                                          (CHAPTER 11)

                     ORDER DISMISSING CHAPTER 11 PROCEEDING

         On this day comes on for  hearing  the  Motion to  Dismiss  Chapter  11
Proceeding  ("Motion")  filed by Debtor on August 23, 2002.  Upon the pleadings,
statements  of counsel and other  matters of proof and law,  finds and orders as
follows:

         1. This proceeding was commenced by the filing of a voluntary  petition
for relief  pursuant to Chapter  11,  Title 11,  United  States Code on July 21,
2000.

         2. The Court has  jurisdiction  over the subject matter  pursuant to 28
U.S.C.   ss.1334.   This   matter   is  a  core   proceeding   pursuant   to  28
U.S.C.ss.157(b)(2). The Court has the authority and power to enter a final order
in this matter.

         3. All claims of  non-insiders  of Debtor,  except for the claim of the
Arkansas Department of Finance & Administration  ("DFA"), have been satisfied or
released.  Besides DFA, the only remaining claims are those of insider creditors
and the court approved  professionals  of Debtor.  These remaining claims can be
satisfied outside of the context of a reorganization proceeding.

         4. Notice of the Debtor's motion has been provided to the United States
Trustee and all  remaining  creditors  and parties in interest.  Pursuant to the
Court's order shortening  notice,  the notice provided that objections,  if any,

<PAGE>

                                               Entered on docket on 9/6/02 by PB

were to be filed  and  served  within  five (5) days of the date of the  notice.
Pursuant to  Bankruptcy  Rule 9006,  objections  were due to be filed before the
close of  business  on  September  3,  2002.  Such  notice is  proper  under the
Bankruptcy Rules and the circumstances of this case.

         5. No  objections  were  timely  filed  with the Clerk or  received  by
Debtor's attorney.

         6. Debtor is indebted for quarterly  fees due the United States Trustee
for the period  beginning July 1, 2002 and ending as of the date of the entry of
this order in an amount to be determined.

         7. The Court  finds  that  good and  sufficient  cause  exists to grant
Debtor's motion to dismiss its Chapter 11 proceeding.  Dismissal of this Chapter
11 proceeding is in the best interest of the Debtor,  the bankruptcy  estate and
its remaining creditors.

         IT IS  THEREFORE  CONSIDERED,  ORDERED,  AND  ADJUDGED,  that  Debtor's
voluntary proceeding filed pursuant to Chapter 11, Title 11, United States Code,
on July 21, 2000, should be and hereby is dismissed. It is further

         CONSIDERED,  ORDERED,  AND ADJUDGED,  that Debtor pay the United States
Trustee all sums due it pursuant to 28 U.S.C. ss.1930(a)(6) within ten (10) days
of the entry of this order. If the fee is not paid as set out herein, the United
States Trustee will have judgment  against the Debtor for the full amount of the
quarterly fees after ten (10) days from the entry of this order.

ORDER DISMISSING CHAPTER 11 PROCEEDING                               PAGE 2 OF 3

<PAGE>

         IT IS SO ORDERED.
                                                     /s/ James G. Mixon
                                                     ------------------------
                                                     HONORABLE JAMES G. MIXON
                                                     U.S. BANKRUPTCY JUDGE

                                                     Date: 9/6/02
                                                           ------------------

APPROVED AND ENTRY REQUESTED:

QUATTLEBAUM, GROOMS,
 TULL & BURROW, PLLC
111 Center Street, Suite 1900
Little Rock, AR 72201
Telephone:      (501) 379-1735
Telecopier:     (501) 379-1701

By: /s/ Geoffrey B. Treece
    ------------------------
        Geoffrey B. Treece
        Ark. Bar No. 84-146

cc:
Jim Hollis                                All creditors and parties in interest
UNITED STATES TRUSTEE                     per matrix
500 S. Broadway, Suite 201
Little Rock, AR 72201

G. Robert Hardin, Esq.
HARDIN & GRACE, P.A.
410 W. Third Street, Suite 200
Little Rock, AR 72201

Mr. Scott B. Bankler
COX & SMITH INCORPORATED
112 E. Pecan Street, Suite 1800
San Antonio, TX 78205

ORDER DISMISSING CHAPTER 11 PROCEEDING                                    3 OF 3Mutual Release and Settlement Agreement

CAUSE NO. 51,577-272

  

	
TEXAS DIGITAL SYSTEMS, INC.,

             Plaintiff,

 VS.

 ELECTRONIC BILLBOARD

 TECHNOLOGY, INC., and

 SI DIAMOND TECHNOLOGY, INC.

             Defendants.

	
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 IN THE DISTRICT COURT OF

 BRAZOS COUNTY, TEXAS

 272nd JUDICIAL DISTRICT

 

  

MUTUAL RELEASE AND SETTLEMENT AGREEMENT

This Mutual Release and Settlement Agreement (the “Agreement”) is entered into by and between
Texas Digital Systems, Inc. (“TDS”), and Electronic Billboard Technology, Inc. and SI Diamond Technology, Inc.
(collectively “SIDT”).  In this Agreement, the term “Parties” refers to TDS and SIDT,
collectively.

INTRODUCTION

WHEREAS, TDS filed suit against SIDT in the District Court of Brazos County, Texas, 272nd
Judicial District, under Cause No. 51,577-272, styled Texas Digital Systems, Inc. v. Electronic Billboard Technology, Inc. and
SI Diamond Technology, Inc. (the “Brazos County Lawsuit”);

WHEREAS, TDS has alleged in the Brazos County Lawsuit causes of action against SIDT for Fraud, Negligent
Misrepresentation, and Breach of Contract, and that such actions by SIDT resulted in economic damages to TDS. 
TDS also
requested declaratory relief, alleged that

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the economic damages should be trebled, and requested reimbursement of its attorney fees
and costs;

WHEREAS, SIDT denied each of the allegations by TDS.  SIDT also affirmatively alleged in the Brazos
County Lawsuit causes of action against TDS for Breach of Purchase Agreement and/or Addendum, Unfair Competition, Misappropriation
of Proprietary, Confidential and/or Trade Secret Information and Know-How, and Hyde Corp. v. Huffines’ Use of
Information Revealed in Confidence.  SIDT further requested declaratory relief, alleged violation of Tex. Civ. Prac. &
Rem. Code § 10.001, and requested reimbursement of its attorney fees and costs;

WHEREAS, SIDT filed suit against TDS in the District Court of Travis County, Texas, 53rd
Judicial District, under Cause No. GN003428, styled Electronic Billboard Technology, Inc. and SI Diamond Technology, Inc. v.
Texas Digital Systems, Inc. (the “Travis County Lawsuit”).  The Travis County Lawsuit was abated subject to
resolution of the Brazos County Lawsuit; and

WHEREAS, the Parties, acting on their own behalf and through their duly authorized attorneys and agents,
desire to settle all claims, damages, actions, causes of action, and matters in dispute among them that arise from or relate
directly or indirectly to the above-described matters to avoid the uncertainties, inconvenience and expense of litigation.

AGREEMENT

NOW, THEREFORE, for and in consideration of the mutual promises, covenants and releases contained in this
Agreement, the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

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1.         
Release of Claims by TDS.  TDS, for itself and on behalf of its predecessors, successors,
parents, subsidiaries, affiliates, employees, officers, directors, stockholders, agents, representatives, partners, assigns, heirs,
executors, administrators, attorneys, and insurers, and all others in privity with any of them, or claiming under any of them or
who may claim under any of them, hereby fully and unconditionally releases, acquits and forever discharges SIDT and its
predecessors, successors, parents, subsidiaries, affiliates, employees, officers, directors, stockholders, agents, representatives,
partners, assigns, heirs, executors, administrators, attorneys, insurers, manufacturers, suppliers, distributors and customers from
and against any and all past and future claims, demands, controversies, actions, causes of action or remedies, whether arising from
common law, contract, statute or otherwise, whether known or unknown, whether asserted or unasserted, presently existing or
inchoate, in any way resulting from, growing out of, arising from the facts, events and causes of action
alleged,  or which could have been alleged, by TDS in the Brazos County Lawsuit or
alleged, or which could have been alleged, by TDS in the Travis County Lawsuit.

2.         
Release of Claims by SIDT.  SIDT for itself and on behalf of its predecessors, successors,
parents, subsidiaries, affiliates, employees, officers, directors, stockholders, agents, representatives, partners, assigns, heirs,
executors, administrators, attorneys, and insurers, and all others in privity with any of them, or claiming under any of them or
who may claim under any of them, hereby fully and unconditionally releases, acquits and forever discharges TDS and its
predecessors, successors, parents, subsidiaries, affiliates, employees, officers, directors, stockholders, agents, representatives,
partners, assigns, heirs, executors, administrators, attorneys, insurers, manufacturers, suppliers, distributors and customers from
and against any and all past and future claims, demands, controversies, actions, causes of action or remedies,

3

   

whether arising from
common law, contract, statute or otherwise, whether known or unknown, whether asserted or unasserted, presently existing or
inchoate, in any way resulting from, growing out of, arising from or relating to
the facts, events and causes
of action alleged, or which could have been alleged, by SIDT
in the
Brazos County Lawsuit or alleged, or which could have been alleged, by SIDT in the
Travis County Lawsuit.

3.         
SIDT Agreement Regarding Future TDS Activity.  SIDT acknowledges and agrees it will not assert
any claim or bring any cause of action to preclude, or recover damages based on or related to, TDS’ manufacture, use, sale,
transfer, offer to sell, or importation of any type of LCD Display, or assembly including an LCD display, in the future, including,
but not limited to, TDS’ current AccuView product, where such claim or cause of action is in any way resulting from, growing
out of, arising from, or relating to the facts, events, and causes of action alleged, or which could have been alleged, by SIDT in
the Brazos County Lawsuit or the Travis County Lawsuit, including, but not limited to, claims or causes of action based on any
written contracts between SIDT and TDS and any information communicated or disclosed by SIDT to TDS prior to the date of this
Agreement.

4.         
TDS Payment.  TDS agrees to pay to SIDT the sum of Eight Hundred Thirty Thousand Dollars ($830,000) by wire transfer
to SIDT’s counsel’s client trust account on or before September 6, 2002.

5.         
Benefit of Agreement to Others. SIDT acknowledges that the provisions of this Settlement Agreement shall extend to and
benefit any person, partnership, company, or other entity which, in the past, present, or future, provides products to, or
purchases products from TDS.

4

   

6.         
No Admission of Liability.  The Parties understand and agree that the terms of this Agreement are contractual and
not merely recitals and that the promises and agreements contained herein and the consideration made herein is to compromise
disputed claims and avoid further litigation, and that no payments made nor releases or other consideration given shall be
construed as an admission of liability by any of the Parties, each of whom expressly denies such liability.

7.         
Dismissal with Prejudice of all Claims.  The Parties hereto agree to the Agreed Joint Orders of Dismissal With
Prejudice attached hereto as Exhibits A and B and shall cause their attorneys to execute and consent to the Agreed Joint Orders of
Dismissal With Prejudice which will be timely filed with the Courts for entry in the Brazos County Lawsuit and in the Travis County
Lawsuit, respectively.

8.         
Confidentiality.  The Parties agree that they will maintain and keep the fact and terms of this Settlement Agreement
confidential, except as to their immediate family members or as may be reasonably necessary to disclose to their attorneys,
accountants, tax or financial advisors, or as they may reasonably need to disclose to officers, directors, or employees with a
legitimate business need to know or as may be required by law, rule, regulation (including SEC reporting or other public disclosure
requirements) or court order; provided, however, that either party may state that the case has been resolved without setting forth
the terms of any such settlement or resolution.  No press release shall be issued by any party unless agreed to by both
parties (or their counsel) in writing; provided that all parties shall act in good faith with respect to such matters and
reasonably cooperate with respect to press releases which may be required by securities laws, rules, or regulations.

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9.         
Return of Confidential Documents to Producing Party.  Pursuant to paragraph 13 of the Protective Order executed
between the parties on or about May 7, 2001, any document and all reproductions of  “Confidential” and “For
Counsel Only” documents produced in the Brazos County Lawsuit or the Travis County Lawsuit shall be returned to the producing
party within thirty (30) days after the Effective Date of this agreement.

10.         
No Assignment.  The Parties hereby represent and warrant that they have made no assignment to another person, firm, organization or corporation of any legal claim, or any part thereof, made
in either the Brazos County Lawsuit or the Travis County Lawsuit.

11.         
Governing Law.  This Agreement and any disputes arising out of or related to this Agreement shall be governed by and
construed in accordance with the laws of the State of Texas without regard to its conflict of law principles, rules or
statutes.  In the event of litigation between the parties pertaining to the rights and/or obligations
under this Agreement, or in the event of litigation between the parties to interpret one or more provisions of this Agreement, or
in any litigation wherein any release herein is successfully asserted, the prevailing party in such litigation shall be entitled to
recover its attorney fees, expenses and costs of any litigation.

12.         
Entire Agreement.  This Agreement constitutes the entire agreement and understanding of the Parties concerning the
matters stated herein, and supersedes any and all prior agreements, representations and understandings by and between the
Parties.  This Agreement may be amended only by an instrument in writing signed by all of the Parties.

13.         
Authority.  Each party represents and warrants that it has appropriate authority to execute this Agreement on behalf
of their respective party and that the individuals executing this 

6

   

 Agreement are duly authorized to execute and deliver this
Agreement and fully bind their respective party.

14.         
Multiple Counterparts/Signatures on Facsimile Copies.  This Agreement may be executed in multiple counterparts, each
of which when so executed shall be deemed to be an original copy, and all of which together shall constitute one agreement binding
on and enforceable against all Parties, notwithstanding that all Parties may not have signed the same counterpart.  The Parties agree that this Agreement may be executed by facsimile and that such executed documents shall be
binding and enforceable as if bearing original signatures.

15.         
Representations of Parties.  The Parties represent that they have read and been advised by counsel regarding this
Agreement, that they understand its provisions and legal effect and that they are voluntarily entering into this Agreement. 
The Parties acknowledge that this Agreement is a full, fair and final settlement of all claims, known or unknown, relating to the
subject matter of this Agreement.  The Parties further represent that in executing this Agreement, they do not rely on any
inducements, statements, promises, or representations pertaining to this matter, other than those expressly set forth in this
Agreement.

16.         
Notices.  All notices hereunder shall be in writing and shall be delivered prepaid (a) by personal delivery, (b) by
a nationally recognized overnight courier service, or (c) by United States first class registered or certified mail return receipt
requested; and the date of notice shall be the actual receipt of notice by any permitted means.

All notices to SIDT shall be given or made to:

Electronic Billboard Technology, Inc. / SI Diamond Technology, Inc.

Attn:  Zvi Yaniv

3006 Longhorn Blvd., Suite 107

Austin, Texas 78758

7

   

A copy of all notices to SIDT  shall be sent to:

FRIEDMAN, SUDER & COOKE

Attn:  Michael T. Cooke, Esq.

Tindall Square Warehouse No. 1

604 East 4th Street, Suite 200

Fort Worth, Texas  76102

Fax (817) 334-0401

All notices to TDS shall be given or made to:

Texas Digital Systems, Inc.

Attn: Robert Bower, Jr.

400 Technology Parkway

College Station, Texas  77845

A copy of all notices to TDS shall be sent to:

SIDLEY, AUSTIN, BROWN & WOOD LLP

Attn:  Charles S. Cotropia, Esq.

717 North Harwood, Suite 3400

Dallas, Texas  75201

Fax (214) 981-3400

Either party may, by written notice to the other party, specify a different address or facsimile number to
which notices shall be given, by notice thereof to the other party in the foregoing manner.

17.         
Costs.  The Parties agree that they will bear their own costs in the Brazos County Lawsuit and
the Travis County Lawsuit.

18.         
Effective Date.  This Agreement shall be effective and have an Effective Date as of the date of the last signature
below.

		TEXAS DIGITAL SYSTEMS, INC.
       

	Date:     
      9/6/02                          
            

      	   /s/
      Robert Bower,
      Jr.                  

      Printed Name:  Robert Bower, Jr.

      Title:  Chairman of Board

8

   

		ELECTRONIC BILLBOARD TECHNOLOGY,
      INC
       

	Date:      
      9/6/02                          
           

      	    
      /s/ Douglas P.
      Baker                     

      Printed Name:  Douglas P. Baker

      Title: Vice President/Secretary 
	                

      	
		SI DIAMOND TECHNOLOGY,
      INC.
       

	Date:      
      9/6/02                          
           

      	    
      /s/ Douglas P.
      Baker                     

      Printed Name:  Douglas P. Baker

      Title: Vice President/Secretary

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