Document:

CLINICAL
      TRIAL AGREEMENT

    

    THIS
      AGREEMENT, effective as of the 24th
      day of
      August, 2007 (the “Effective Date”), is by and between The Cleo Roberts Center
      of Clinical Research at Sun Health Research Institute (hereinafter called “Sun
      Health”), having it’s principal place of business at 10515 West Santa Fe Drive,
      Sun City, AZ 85351, and Power3 Medical Products, Inc., a corporation organized
      and existing under the laws of the State of New York and having its offices
      at
      3400 Research Forest Drive, The Woodlands, TX 77381 

     

    WHEREAS,
      Power3 Medical desires to conduct clinical trials with Sun Health Institute
      in
      order to obtain certain biological materials and associated experimental or
      clinical information, and to use such materials and information for the
      analysis, validation and identification of protein structure and function;
      and
      Sun Health agrees to provide such materials and associated experimental or
      clinical information to Power3 Medical; and  which
      will guide the performance of this Agreement and which has been written by
      the
      Sponsor and accepted by Sun Health Research Institute; and Principal
      Investigator Dr. Essam Sheta , and

    

    WHEREAS,
      the research program contemplated by this Agreement is of mutual interest and
      benefit to Sun Health Institute and to the Sponsor , and will further Sun Health
      Institute’s instructional and research objectives in a manner consistent with
      its corporate status.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein, the parties hereto hereby agree as follows:

    

    
      	1.	
              Effective
                Date. 24th
                day of August, 2007

            

    

     

    
      
        This
          Agreement shall be effective as of the Effective Date and shall remain
          in full
          force and effect until it expires or is terminated in accordance with Section
          15
          hereof.

      

    

    

    
      	2.	
              Scope
                of Work.

            

    

     

    Sun
      Health Institute shall perform the study described in the Protocol entitled
      “Studying serum protein profile from patients with Nuerodegenerative diseases
      vs. age matched control & disease like disorders , attached hereto as
      Appendix A, and which is hereby incorporated into and made a part of this
      Agreement (“the Study”) subject to and in accordance with the provisions
      hereof.

    

    
      	3.	
              Principal
                Investigator/Co-Investigator.

            

    

     

    The
      Study
      will be conducted by and under the direction of Sun Health’s Institute’s; Marwin
      N. Sabbagh MD, FAAN hereafter referred to as “Principal Investigator”. The
      Principal Investigator will be responsible for the direction of the Study in
      accordance with all applicable Sun Health Institute’s policies and all
      applicable laws and regulations, including but not limited to Federal Food,
      Drug
      and Cosmetic Act regulations and guidelines. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	4.	
              Performance
                Period.

            

    

     

    The
      Study
      shall be initiated on or about January 1, 2007 and shall terminate on or about
      December 31, 2007 (“the Performance Period”). If at any time the Principal
      Investigator has reason to believe work will not be completed within the
      Performance Period, the Principal Investigator will advise Sponsor of the reason
      (s) and length of time required to complete the Study.

    

    
      	5.	
              Records
                and Reports.

            

    

     

    It
      is
      understood that the Principal Investigator shall have the following record
      keeping 

    and
      reporting obligations: (i) preparation and maintenance of complete, accurately
      written records, accounts, notes, reports, and data of the Study performed
      under
      the Agreement; and (ii) preparation and submission to Sponsor of patient case
      reports (“Case Reports”) for each patient as provided in the protocol described
      in Appendix A.

    

    
      	6.	
              Study
                Material.

            

    

     

    Sponsor
      shall make available sufficient quantities of the Study material to carry out
      the Study. The Principal Investigator shall take responsible steps to handle,
      store, and use such materials in accordance with Appendix A. All such unused
      materials will be returned to Sponsor at the conclusion of the work, unless
      written authorization to destroy them is given by Sponsor.

    

    
      	7.	
              Payment.

            

    

     

    In
      consideration of SHRI’s performance of the Study, Sponsor shall pay SHRI as set
      forth below.

     

    
      	 	
              A.

            	
              Sponsor
                shall pay SHRI a sum of $350.00 per completed, evaluable subject,
                who
                completes the protocol and for whom a Case Report is submitted. The
                sum
                assumes enrollment up to 400 evaluable subjects in accordance with
                the
                scope of work set forth in the Protocol. The payment noted above
                includes
                all applicable overheads due any party or entity and shall be paid
                on a
                per patient basis.

            

    

     

    
      	 	
              B.

            	
              Payment
                shall be made to SHRI according to Appendix B appended hereto and
                incorporated by reference. All costs outlined in Appendix B shall
                remain
                firm for duration of the Research, unless otherwise agreed to in
                writing
                by SHRI and Sponsor.

            

    

    

    
      	 	
              C.

            	
              Checks
                will be made payable to: “Sun Health Research Institute”, Tax ID No.
                86-0768795

            

    

     

    Checks
      shall be sent to:

     

    Sun
      Health Research Institute

    10515
      West Santa Fe. Drive

    Sun
      City,
      AZ

    85351

     

    
      
        
        

      

      
        Page
          2 of 9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              D.

            	
              The
                payments shall be paid to SHRI within thirty (30) days after submission
                of
                subjects Case Reports by SHRI to Sponsor and the submission of an
                accounting invoice.

            

    

    

    
      	
              8.

            	
              Confidential
                Information.

            

      	 	 

    

    
      	 	
              A.

            	
              “Confidential
                Information” as used herein shall mean compounds or substances and
                information or data in written, oral or tangible form delivered by
                or on
                behalf of Sponsor hereunder for the performance of the Study and
                which is
                clearly labeled as confidential by Sponsor, or if presented in oral
                form,
                is immediately identified as confidential and is summarized and labeled
                in
                written form as confidential with fifteen (15) days of its oral
                presentation. Confidential Information will not include any information
                that: (i) was known by Sun Health Institute prior to its receipt
                from
                Sponsor; (ii) is generally publicly known or becomes publicly known
                subsequent to its receipt from Sponsor through no fault of _Sun Health
                Institute; (iii) is hereafter developed by Sun Health Institute
                independent of any disclosure by Sponsor hereunder; or (iv) is received
                by
                Sun Health Institute from another party not under an obligation of
                confidentiality to Sponsor.

            

    

     

    
      	 	
              B.

            	
              However,
                Sun Health Institute agrees to retain Confidential Information in
                such
                confidence as Sun Health Institute retains its own confidential
                information, not to reveal such Confidential Information to third
                parties,
                except, as required, to the Food and Drug Administration (FDA), without
                the prior written permission of Sponsor, and to use such Confidential
                Information only for the purpose of conducting the research or work
                hereunder. At the termination of this agreement all Confidential
                Information (including copies and unused substances) will be returned
                to
                Sponsor, except that Sun Health Institute may retain one copy of
                such
                Confidential Information for archival purposes
                only.

            

    

     

    
      	 	
              C.

            	
              The
                results of the Study shall be treated in confidence by Sun Health
                Institute, except that Sun Health Institute retains the right to
                publish
                any and all of its Study results, subject to a prior thirty (30)
                day
                period of review by Sponsor.

            

    

     

    
      	 	
              D.

            	
              Sponsor
                shall have the right to use, copy and distribute as it sees fit any
                of the
                published results of the Study and to use and copy unpublished research
                results, provided that Sponsor may not use the name of Sun Health
                Institute and its Principal Investigator for any public or commercial
                purpose, including advertising, promotional or sales literature or
                product
                labeling without the prior written consent of Sun Health
                Institute.

            

    

    

    
      	9.	
              HIPAA
                Compliance. 

            

    

     

    
      	 	
              A.

            	
              Sponsor
                and Sun Health Institute agree to comply with the applicable provisions
                of
                the Administrative Simplification section of the Health Insurance
                Portability and Accountability Act of 1996, as codified at 42 U.S.C.
§
                1320d through d-8 (“HIPAA”), and the requirements of any regulations
                promulgated thereunder including without limitation the federal privacy
                regulations as contained in 45 CFR Part 164 (the “Federal Privacy
                Regulations”) and the federal security standards as contained in 45 CFR
                Part 142 (the “Federal Security Regulations”). Sponsor and Sun Health
                Institute agree not to use or further disclose any protected health
                information, as defined in 42 U.S.C. § 1320d (collectively, the “Protected
                Health Information”), concerning a patient other than as permitted by this
                Agreement and the requirements of HIPAA or regulations promulgated
                under
                HIPAA including without limitation the Federal Privacy Regulations
                and the
                Federal Security Regulations. Sponsor and Sun Health Institute will
                implement appropriate safeguards to prevent the use or disclosure
                of a
                patient’s Protected Health Information other than as provided for by this
                Agreement. Sponsor and Sun Health Institute will promptly report
                to the
                other any use or disclosure of a patient’s Protected Health Information
                not provided for by this Agreement or in violation of HIPAA, the
                Federal
                Privacy Regulations, or the Federal Security Regulations of which
                Sponsor
                or Sun Health Institute becomes aware. In the event Sponsor or Sun
                Health
                Institute, with the other’s approval, contracts with any agents to whom it
                provides a patient’s Protected Health Information, it shall include
                provisions in such agreements whereby it and agent agree to the same
                restrictions and conditions that apply to it with respect to such
                patient’s Protected Health Information. Sponsor and Sun Health Institute,
                will make its internal practices, books, and records relating to
                the use
                and disclosure of a patient’s Protected Health Information available to
                the Secretary of Health and Human Services to the extent required
                for
                determining compliance with the Federal Privacy Regulations and the
                Federal Security Regulations. Notwithstanding the foregoing, no
                attorney-client, accountant-client, or other legal privilege shall
                be
                deemed waived by Sponsor or Sun Health Institute by virtue of this
                Section.

            

    

     

    
      
        
        

      

      
        Page
          3 of 9

        
          

        

      

      
        
        

      

    

     

    
      	10.	
              Publication.

            

    

     

    
      	 	
              A.

            	
              Prior
                to submission for publication of a manuscript describing the results
                of
                any aspect of the Study, Sun Health Institute shall send Sponsor
                a copy of
                the manuscript to be submitted, and shall allow Sponsor thirty (30)
                days
                from the date of mailing to review the manuscript. The purposes for
                such
                review are i) to provide the Sponsor with the opportunity to review
                and
                comment on the contents of the proposed publication, ii) to identify
                any
                Confidential Information belonging to the Sponsor to be deleted from
                the
                proposed publication; and iii) to allow Sponsor to determine whether
                the
                manuscript contains subject matter for which patent protection should
                be
                sought prior to publication of such manuscript. Should Sponsor believe
                the
                manuscript contains Confidential Information belonging to Sponsor
                or that
                the subject matter of the manuscript contains a patentable invention,
                then
                prior to the expiration of thirty (30) days from the mailing date
                of such
                manuscript to Sponsor by Sun Health Institute Sponsor shall give
                written
                notification of such determination to Sun Health
                Institute.

            

    

     

    
      	 	
              B.

            	
              After
                the expiration of thirty (30) days from the date of mailing such
                manuscript by Sponsor, unless Sun Health Institute has received the
                written notice specified above from Sponsor, Sun Health Institute
                shall be
                free to submit such manuscript for publication and to publish the
                disclosed research results in any manner consistent with academic
                standards.

            

    

     

    
      	 	
              C.

            	
              Upon
                receipt of such written notice from Sponsor that the manuscript contains
                a
                patentable invention, Sun Health Institute will thereafter delay
                submission of the manuscript for an additional period of up to sixty
                (60)
                days to permit preparation and filing of U.S. patent application
                on the
                subject matter to be disclosed in such manuscript. After expiration
                of
                such sixty (60) day period, or the filing of a patent application
                on each
                such invention, whichever shall occur first, Sun Health Institute
                shall be
                free to submit the manuscript and to publish the disclosed
                results.

            

    

     

    
      	 	
              D.

            	
              Upon
                receipt of written notice from Sponsor that the manuscript contains
                Confidential Information of Sponsor, Sun Health Institute shall review
                the
                manuscript and delete Confidential Information of
                Sponsor.

            

    

    

    
      	11.	
              Patents.

            

    

     

    
      	 	
              A.

            	
              Sun
                Health Institute shall promptly disclose in writing to Sponsor any
                invention made by Sun Health Institute, its employees or the Principal
                Investigator during the course of the performance of the Study and
                with
                respect to the Study drug/device. Sponsor shall maintain all such
                disclosures in confidence and shall not deliver or divulge them to
                any
                person. Sun Health Institute hereby grants Sponsor a non-exclusive
                royalty-free license to practice any such inventions and under any
                patents
                or patent applications which Sun Health Institute may file for such
                inventions.

            

    

    

    
      	 	
              B.

            	
              Sponsor
                shall also have an option to acquire an exclusive license to practice
                any
                such invention and patents and patent applications thereon upon reasonable
                terms and conditions, including reasonable royalties, as the parties
                may
                mutually agree in a subsequent writing. The option granted in this
                Section
                10.B. shall commence on the date Sponsor receives a disclosure of
                invention, as set forth in Section 10.A. and shall terminate one
                hundred
                eighty (180) days thereafter.

            

    

     

    
      
        
        

      

      
        Page
          4 of 9

        
          

        

      

      
        
        

      

    

     

    
      	12.	
              Indemnification.

            

    

     

    With
      respect to this Study, Sponsor shall indemnify Institution as
      follows:

    

    Sponsor
      shall indemnify, defend, and hold harmless Institution, and its trustees,
      directors, affiliates, officers, employees, physicians and agents, including
      the
      Principal Investigator (the "Indemnitees") from and against any and all actions,
      claims, lawsuits, demands or prosecutions that may be brought or instituted
      and
      all consequent damages, liabilities, costs and expenses (including reasonable
      attorneys' fees), by reason of personal injury, illness or death to any person
      arising out of or connected with the performance of the Research Devices being
      investigated pursuant to the Study. However, any damage, liability, cost or
      expense resulting from: (1) failure to adhere to the terms of the Protocol
      or
      Sponsor’s written instructions relative to the use of the investigational
      device; (2) failure to comply with any applicable FDA, NIH or other governmental
      requirement; and/or (3) the negligence or willful misconduct of an Indemnitee
      is
      excluded from this indemnity. In the event any such claim is made or lawsuit
      is
      initiated, Institution or the Principal Investigator, or both, shall promptly
      notify Sponsor in writing of such claim, shall cooperate fully with Sponsor
      in
      the defense of such claim or lawsuit, and shall permit Sponsor and/or its
      insurance carrier to defend and settle any such claim in its sole discre-tion.
      

    

    Sponsor
      shall reimburse for reasonable and necessary medical expenses incurred by
      Research Subjects as a direct result of the treatment of adverse reactions
      from
      study drugs or devices following their administration or use in accordance
      with
      the Protocol, provided such expenses are not covered by the Research Subject’s
      medical or hospital insurance coverage and are in no way attributable to the
      negligence or misconduct of any agent or employee of Sun Health Institute.
      No
      other compensation of any type will be provided by the Sponsor to the Research
      Subjects except as required by law. 

    

    
      	13.	
              No
                Assignment.

            

    

     

    Neither
      party shall have the right to assign, delegate or transfer at any time to any
      party, in whole or in part, any or all of the rights duties and interest herein
      granted without first obtaining the written consent of the other party to such
      assignment.

    

    
      	14.	
              Use
                of Name.

            

    

     

    Without
      the prior written consent of Sun Health Institute, Sponsor shall not use the
      name of Sun Health Institute or of any Sun Health Institute staff member,
      employee or student, or any adaptation thereof;

     

    
      	
            	i)	
              in
                any advertising, promotion or sales
                literature;

            

    

     

    
      	 	
              ii)

            	
              in
                connection with any public or private offering or in conjunction
                with any
                application for regulatory approval, unless disclosure is otherwise
                required by law, in which case Sponsor may make factual statements
                concerning the Agreement or file copies of the Agreement after providing
                Sun Health Institute with an opportunity to comment and reasonable
                time
                within which to do so on such issue pertaining to public announcements
                about this Agreement or the status or existence of the Study without
                prior
                written approval of the other
                party.

            

    

    

    
      	15.	
              Termination.

            

    

     

    
      	 	
              A.

            	
              This
                Agreement shall become effective upon the date first hereinabove
                written
                and shall continue in effect for the full duration of the Performance
                Period unless sooner terminated. The parties hereto may, however,
                extend
                the term of this Agreement for additional periods as desired under
                mutually agreeable terms and conditions which the parties reduce
                to
                writing and sign.

            

    

     

    
      	 	
              B.

            	
              In
                the event that either party hereto shall commit any breach or default
                in
                any of the terms or conditions of this Agreement, and also shall
                fail to
                remedy such default or breach within thirty (30) days after receipt
                of
                written notice thereof from the other party hereto, the party giving
                notice may, at its option and in addition to any other remedies which
                it
                may have at law or in equity, terminate this Agreement by sending
                notice
                of termination in writing to the other party to such effect, and
                such
                termination shall be effective as of the date of the receipt of such
                notice.

            

    

     

    
      	 	
              C.

            	
              This
                Study and this Agreement may be terminated for any reason by the
                Sponsor
                or Sun Health Institute when in their independent and sole judgment
                or
                that of the Principal Investigator or the FDA, it is inappropriate,
                impractical, or inadvisable to
                continue.

            

    

     

    
      	 	
              D.

            	
              Termination
                of this Agreement by either party for any reason shall not affect
                the
                rights and obligations of the parties accrued prior to the effective
                date
                of termination of this Agreement. Upon termination of this Agreement
                for
                any reason except breach or default by Sun Health Institute Sponsor
                shall
                pay Sun Health Institute for all work performed through the effective
                termination date, and all uncancelled obligations.
                

            

    

     

    
      	 	
              E.

            	
              Sections
                9, 10, 11, 12, 13, 14 and 15 of this Agreement shall survive expiration
                or
                termination of this Agreement.

            

    

     

    
      
        
        

      

      
        Page
          5 of 9

        
          

        

      

      
        
        

      

    

     

    
      	16.	
              Notices.

            

    

     

    Notices
      required or permitted hereunder shall be in writing and shall be deemed given
      as
      of the date it is (A) delivered by hand or (B) received by Registered or
      Certified mail, postage prepaid, return receipt directed, or received by
      facsimile and addressed to the party to receive such notice at the address
      set
      forth below. Such notices and communications shall be deemed to have been
      received by the addressee on the date of delivery or fourteen (14) days after
      having been sent by registered mail.

    

    Sun
      Health Institute 

    For
      Technical/Scientific Matters

    Principal
      Investigator:

    Marwan
      N.
      Sabbagh MD, FAAN

    Director
      of Clinical Research

    The
      Cleo
      Roberts Center of Clinical Research

    Sun
      Health Research Institute

    10515
      W.
      Santa Fe Dr

    Sun
      City,
      AZ 85351

    Phone:
      623-875-6500

    Fax:
      623-875-6504

    

    For
      Administrative Matters

    John
      L.
      Roach

    ________________________

    ________________________

    ________________________

    PH:
      623-876-5706

    Fax:
      623-876-5461

     

    Sponsor:
      

    Power3
      Medical Products, Inc.

       3400
      Research Forest Drive

       The
      Woodlands, TX 77381

     

    17. Miscellaneous.

     

    
      	
            	A.	
              In
                carrying out this Agreement the parties shall comply with all local,
                state
                and federal laws and regulations.

            

    

    

    
      
        
          	
                	B.	
                  If
                    any provision of this Agreement is determined to be invalid or
                    void, the
                          remaining provisions shall remain in
                    effect.

                

        

      

    

    

    
      	 	
              C.

            	
              This
                Agreement (and the annexed Appendices) constitute the entire Agreement
                between the parties and no variation, modification or waiver of any
                of the
                terms or conditions hereof shall be deemed valid unless made in writing
                and signed by both parties hereto. This Agreement supersedes any
                and all
                prior agreements or understandings, whether oral or written, between
                Sponsor and Sun Health Institute.

            

    

    

    
      	 	
              D.

            	
              No
                waiver by either party of any non-performance or violation by the
                other
                party of any of the covenants, obligations or agreements of such
                other
                party hereunder shall be deemed to be a waiver of any subsequent
                violation
                or non-performance of the same or any other covenant, agreement or
                obligation, nor shall forbearance by any party be deemed to be a
                waiver by
                such party of its rights or remedies with respect to such violation
                or
                non-performance.

            

    

    

    
      	 	
              F.

            	
              The
                descriptive headings contained in this Agreement are included for
                convenience and reference only and shall not be held to expand, modify
                or
                aid in the interpretation, construction or meaning of this
                Agreement.

            

    

    

    
      
        
          	
                	G.	
                  It
                    is not the intent of the parties to create a partnership or joint
                    venture
                    or to       assume partnership
                    responsibility or liability. The obligations of the parties shall
                    be limited
                    to those set out herein and such obligations shall be several
                    and not
                    joint.

                

        

      

    

    

    
      	 	
              H.

            	
              Sun
                Health Institute and Investigator each represents and warrants to
                Sponsor
                that it has not been “debarred” by the United States Food & Drug
                Administration (“FDA”), nor have debarment proceedings against it been
                commenced. Sun Health Institute and Investigator will immediately
                notify
                Sponsor in writing if any such proceedings have commenced or if Sun
                Health
                Institute and/or Investigator are debarred by the
                FDA.

            

    

     

    
      
        
        

      

      
        Page
          6 of 9

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their duly authorized representatives as of the date first above
      written.

    

      
        	
                BY:
                  SPONSOR/Power3 Medical Products, Inc.

              	
                BY:
                  Sun Health Institute

              
	 	 
	 	 
	
                s://Steven
                  B. Rash

              	
                s://John
                  L. Roach

              
	
                Steven
                  B. Rash

              	
                Name:
                  John L Roach

              
	
                Chief
                  Executive Officer Title: CFO

              	 
	 	 
	
                Date:
                  11/6/07

              	
                Date:
                  12/4/07

              

      

    

     

    As
      Principal Investigator, I acknowledge that I have reviewed this Agreement and
      agree to be
      bound
      by its terms and conditions.

    

     

    s://Marwan
      Sabbagh

    Name:    

    

    

    Date:
      12/10/07

     

    
      
        
        

      

      
        Page
          7 of 9

        
          

        

      

      
        
        

      

    

    Appendix
      A

    

    The
      Protocol: BC0001
      (
      Rev. 5
      )  “Studying
      serum protein profile from patient’s with disease’s vs. age-matched control
& disease-like disorder’s ”
      Attached.

     

    
      
        
        

      

      
        Page
          8 of 9

        
          

        

      

      
        
        

      

    

    

    Appendix
      B

    

    Detailed
      Per Patient Budget: Attached. 

     

    
      
        
        

      

      
        Page
          9 of 9THIS
      NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
      THE
      SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
      ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS.

    

    
      	
              No.
                1

            	
              U.S.
                2,00,000.00

            	
              Original
                Issue Date: February 11, 2008

            
	
              Holder:

            	
              Solar
                Thin Power, Inc.

            	 
	 	 	 
	
              Address:

            	
              25
                Highland Blvd.

            	 
	 	
              Dix
                Hills, New York, 11746

            	 

    

     

    SECURED
      TERM NOTE

     

    FOR
      VALUE
      RECEIVED, SOLAR THIN FILMS, INC. a Delaware corporation, having its principal
      place of business at 25 Highland Blvd., Dix Hills, New York 11746 (the
“Company”),
      promises to pay to SOLAR THIN POWER, INC., a Nevada corporation having its
      principal place of business at 25 Highland Blvd., Dix Hills, New York 11746
      (the
“Holder”)
      or its
      registered assigns or successors in interest, the sum of One Million Five
      Hundred Thousand Dollars ($1,500,000), together with any accrued and unpaid
      interest hereon, on February 11, 2009 (the “Maturity
      Date”)
      if not
      sooner indefeasibly paid in full.

     

    ARTICLE
      I

    CONTRACT
      RATE AND AMORTIZATION

     

    1.1 Interest
      Rate.
      Subject
      to Sections 3.2 and 4.10, interest payable on the outstanding principal amount
      of this Note (the “Principal
      Amount”)
      shall
      accrue at a rate per annum equal to the “prime rate” published in The
      Wall Street Journal
      from
      time to time (the “Interest
      Rate”).
      The
      Interest Rate shall be increased or decreased as the case may be for each
      increase or decrease in the prime rate in an amount equal to such increase
      or
      decrease in the prime rate; each change to be effective as of the day of the
      change in the prime rate. Interest shall be (a) calculated on the basis of
      a 360
      day year, and (b) payable upon maturity.

     

    1.2 Reserved.

     

    1.3 Balloon
      Payment.
      Upon
      maturity, the Company shall make a balloon payment of all outstanding principal
      together with any accrued and unpaid interest and any and all other unpaid
      amounts which are then owing by the Company to the Holder under this
      Note.

     

    ARTICLE
      II

    REDEMPTION

     

    2.1 Optional
      Redemption in Cash.
      The
      Company may prepay this Note (“Optional
      Redemption”)
      by
      paying to the Holder a sum of money equal to one hundred percent (100%) of
      the
      principal amount outstanding at such time together with accrued but unpaid
      interest thereon and any and all other sums due, accrued or payable to the
      Holder arising under this Note (the “Redemption
      Amount”)
      outstanding on the Redemption Payment Date (as defined below). The Company
      shall
      deliver to the Holder a written notice of redemption (the “Notice
      of Redemption”)
      specifying the date for such Optional Redemption (the “Redemption
      Payment Date”),
      which
      date shall be within seven (7) business days after the date of the Notice of
      Redemption (the “Redemption
      Period”).
      On
      the Redemption Payment Date, the Redemption Amount must be paid in good funds
      to
      the Holder. In the event the Company fails to pay the Redemption Amount on
      the
      Redemption Payment Date as set forth herein, then such Redemption Notice will
      be
      null and void.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    ARTICLE
      III

    EVENTS
      OF DEFAULT

     

    3.1 Events
      of Default.
      The
      occurrence of any of the following events set forth in this Section 3.1 shall
      constitute an event of default (“Event
      of Default”)
      hereunder:

     

    (a) Failure
      to Pay.
      The
      Company fails to pay when due any amounts when due or other fees hereon in
      accordance herewith, when due, and, in any such case, such failure shall
      continue for a period of five (5) days following the date upon which any such
      payment was due.

     

    (b) Breach
      of Covenant.
      The
      Company or any of its subsidiaries breaches any covenant or any other term
      or
      condition of this Note in any material respect and such breach, if subject
      to
      cure, continues for a period of fifteen (15) days after the occurrence
      thereof.

     

    (c) Breach
      of Representations and Warranties.
      Any
      representation, warranty or statement made or furnished by the Company or any
      of
      its subsidiaries in this Note, shall at any time be false or misleading in
      any
      material respect on the date as of which made or deemed made.

     

    (d) Reserved;

     

    (e) Material
      Adverse Effect.
      Any
      change or the occurrence of any event which could reasonably be expected to
      have
      a Material Adverse Effect;

     

    (f) Bankruptcy.
      The
      Company or any of its subsidiaries shall (i) apply for, consent to or
      suffer to exist the appointment of, or the taking of possession by, a receiver,
      custodian, trustee or liquidator of itself or of all or a substantial part
      of
      its property, (ii) make a general assignment for the benefit of creditors,
      (iii) commence a voluntary case under the federal bankruptcy laws (as now or
      hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file
      a
      petition seeking to take advantage of any other law providing for the relief
      of
      debtors, (vi) acquiesce to, without challenge within ten (10) days of the filing
      thereof, or failure to have dismissed, within thirty (30) days, any petition
      filed against it in any involuntary case under such bankruptcy laws, or (vii)
      take any action for the purpose of effecting any of the foregoing;

     

    (g) Judgments.
      Attachments or levies in excess of $100,000 in the aggregate are made upon
      the
      Company or any of its Subsidiary’s assets or a judgment is rendered against the
      Company’s property involving a liability of more than $100,000 which shall not
      have been vacated, discharged, satisfied, stayed or bonded within thirty (30)
      days from the entry thereof;

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (h) Insolvency.
      The
      Company or any of its Subsidiaries shall admit in writing its inability, or
      be
      generally unable, to pay its debts as they become due or cease operations of
      its
      present business;

     

    (i) Change
      of Control.
      A
      Change of Control (as defined below) shall occur with respect to the Company,
      unless Holder shall have expressly consented to such Change of Control in
      writing. A “Change of Control” shall mean any event or circumstance as a result
      of which (i) any “Person” or “group” (as such terms are defined in Sections
      13(d) and 14(d) of the Exchange Act, as in effect on the date hereof), other
      than the Holder, is or becomes the “beneficial owner” (as defined in Rules
      13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of 35%
      or
      more on a fully diluted basis of the then outstanding voting equity interest
      of
      the any Company, (ii) the Board of Directors of the Company shall cease to
      consist of a majority of the Company’s board of directors on the date hereof (or
      directors appointed by a majority of the board of directors in effect
      immediately prior to such appointment) or (iii) the Company or any of its
      Subsidiaries merges or consolidates with, or sells all or substantially all
      of
      its assets to, any other person or entity;

     

    (i) Indictment;
      Proceedings.
      The
      indictment or threatened indictment of the Company or any of its subsidiaries
      or
      any executive officer of the Company or any of its subsidiaries under any
      criminal statute, or commencement or threatened commencement of criminal or
      civil proceeding against the Company or any of its subsidiaries or any executive
      officer of the Company or any of its subsidiaries pursuant to which statute
      or
      proceeding penalties or remedies sought or available include forfeiture of
      any
      of the property of the Company or any of its subsidiaries;

     

    3.2 Default
      Interest.
      Following the occurrence and during the continuance of an Event of Default,
      the
      Company shall pay additional interest on the outstanding principal balance
      of
      this Note in an amount equal to two percent (2%) per month, and all outstanding
      obligations under this Note, including unpaid interest, shall continue to accrue
      interest at such additional interest rate from the date of such Event of Default
      until the date such Event of Default is cured or waived.

     

    ARTICLE
      IV

    MISCELLANEOUS

     

    4.1 Issuance
      of New Note.
      Upon
      any partial redemption of this Note, a new Note containing the same date and
      provisions of this Note shall, at the request of the Holder, be issued by the
      Company to the Holder for the principal balance of this Note and interest which
      shall not have been paid as of such date. Subject to the provisions of Article
      III of this Note, the Company shall not pay any costs, fees or any other
      consideration to the Holder for the production and issuance of a new
      Note.

     

    4.2 Cumulative
      Remedies.
      The
      remedies under this Note shall be cumulative.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    4.3 Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of the Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

     

    4.4 Notices.
      Any
      notice herein required or permitted to be given shall be in writing and shall
      be
      deemed effectively given: (a) upon personal delivery to the party notified,
      (b)
      when sent by confirmed telex or facsimile if sent during normal business hours
      of the recipient, if not, then on the next business day, (c) five (5) days
      after
      having been sent by registered or certified mail, return receipt requested,
      postage prepaid, or (d) one (1) day after deposit with a nationally recognized
      overnight courier, specifying next day delivery, with written verification
      of
      receipt. Any notice given hereunder shall be to the following:

    

    To
      The
      Company:

    

    Solar
      Thin Films, Inc.

    25
      Highland Blvd.

    Dix
      Hills, NY 11746

    

    To
      The
      Holder:

    

    Solar
      Thin Power, Inc.

    25
      Highland Blvd.

    Dix
      Hills, NY 11746

     

    4.5 Amendment
      Provision.
      The
      term “Note” and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented, and any successor instrument
      as such successor instrument may be amended or supplemented.

     

    4.6 Assignability.
      This
      Note shall be binding upon the Company and its successors and assigns, and
      shall
      inure to the benefit of the Holder and its successors and assigns. The Company
      may not assign any of its obligations under this Note without the prior written
      consent of the Holder, any such purported assignment without such consent being
      null and void.

     

    4.7 Cost
      of Collection.
      In case
      of any Event of Default under this Note, the Company shall pay the Holder the
      Holder’s reasonable costs of collection, including reasonable attorneys’
fees.

     

    4.8 Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a) THIS
      NOTE
      SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
      OF
      THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b) THE
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE HAND,
      AND THE HOLDER, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER
      RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE
      OR
      ANY OF THE RELATED AGREEMENTS; PROVIDED,
      THAT
      THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE
      HEARD
      BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND
      FURTHER PROVIDED,
      THAT
      NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
      HOLDER. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH
      JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY
      HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      THE
      COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
      PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
      SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL
      ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT
      AND
      THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S
      ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
      POSTAGE PREPAID.

     

    (c) THE
      COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, THE COMPANY HERETO WAIVES ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER AND/OR THE
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, ANY OTHER
      RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

     

    4.9 Severability.
      In the
      event that any provision of this Note is invalid or unenforceable under any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Note.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    4.10 Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum rate permitted by such law, any payments in excess
      of such maximum rate shall be credited against amounts owed by the Company
      to
      the Holder and thus refunded to the Company.

     

    4.11 Security
      Interest.
      The
      Holder has been granted a security interest (a) in certain proceeds of certain
      equity interests of the Company as more fully described in the Security
      Agreement 

     

     [Signatures
      appear on the following page.]

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Secured Term Note to be signed in its name effective
      as
      of this 1 day of February, 2008.

    

    
      	
              SOLAR
                THIN FILMS, INC.

            
	 
	
              By:

            	
              /s/
                Peter Lewis

            
	 	
              Name:

            
	 	
              Title:

            

    

    WITNESS:

    

    
      	
              /s/
                Robert Rubin

            

    

    

    
      
        
        

      

      
        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]