Document:

<PAGE>

                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of February 6,
2002, is by and between InkSure Technologies Inc., a Delaware corporation (the
"Company"), and Elie Housman ("Executive").

                                     RECITAL

         The Company desires to employ Executive, effective as of February 6,
2002 (the "Commencement Date"), on the terms and conditions set forth in this
Agreement, and Executive desires to be so employed.

                                    AGREEMENT

         IN CONSIDERATION of the premises and the mutual covenants set forth
below, the parties hereby agree as follows:

         1. Employment. The Company hereby agrees to employ Executive as the
Chairman of the Board of the Company, and Executive hereby accepts such
employment, on the terms and conditions hereinafter set forth.

         2. Term. The period of employment of Executive by the Company hereunder
(the "Employment Period") shall commence at the Commencement Date and shall
continue through February 6, 2004. The Employment Period may be sooner
terminated by either party in accordance with Section 6 of this Agreement.

         3. Position and Duties. During the Employment Period, Executive shall
serve as Chairman of the Board of the Company. Executive shall have those powers
and duties normally associated with the position of Chairman of the Board. In
addition to following the reasonable directives of the Board of Directors,
Executive shall be responsible for reviewing the Company's business plan and
supervising its implementation, advising with respect to matters relating to
mergers and acquisitions, financing and capital structure. Although such
position shall not be full-time, Executive shall devote such business time,
attention and energies to Company affairs as are necessary to fully perform his
duties (other than absences due to illness) for the Company.

         4. Place of Performance. Executive shall not be required to move his
principal residence away from the New York City metropolitan area (including New
Jersey) during the Employment Period.

         5. Compensation and Related Matters.

         (a) Salary. During the Employment Period, the Company shall pay
Executive a base salary of $40,000 per year (the "Base Salary"); provided,
however, that the Base Salary shall be automatically increased to the rate of
$75,000 per year upon the Company receiving aggregate additional equity capital
of $3.0 million (excluding for this purpose funds received upon the exercise of
securities outstanding as of the date hereof) on or before September 6, 2002.
Executive's Base Salary shall be paid in approximately equal installments in
accordance with the Company's customary payroll schedule and practices.

<PAGE>

         (b) Stock Options:

                  (i) Grant of Stock Option. Effective as of the Commencement
         Date, Executive shall be awarded a stock option (the "Stock Option") to
         purchase 478,469 shares of the Company's Common Stock at an exercise
         price of $0.966 per share (the "Exercise Price").

                  (ii) Capitalization. The Company hereby represents and
         warrants to the Executive as follows: the Company's authorized capital
         stock consists of 10,000,000 shares of Common Stock. There are issued
         and outstanding 6,208,349 shares of Common Stock. The Company has
         reserved for issuance pursuant to its 2001 Stock Option Plan (the
         "Plan") 600,000 shares of Common Stock, and has granted options to
         purchase 169,350 shares of Common Stock pursuant to the Plan. Other
         than an option to purchase 300,480 shares of Common Stock at an
         aggregate exercise price of $150,000 and the options outstanding under
         the Plan, there are no outstanding or authorized rights, options,
         warrants, convertible securities, subscription rights, conversion
         rights, exchange rights or other agreements of any kind that could
         require the Company to issue or sell any shares of its capital stock
         (or securities convertible into or exchangeable for shares of its
         capital stock). There are no preemptive rights on the part of any
         holder of capital stock of the Company.

                  (iii) Vesting. Subject to Section 9 (and subject to
         Executive's remaining in continuous employment with the Company), the
         Stock Option shall be vested (A) as to 159,489 of the shares
         purchasable thereunder on the date hereof, (B) as to an additional
         159,489 shares subject to the Stock Option immediately upon the
         consummation of a transaction or series of related transactions with
         the Tshuva group involving the issuance and sale of the Company's
         equity securities at a pre-financing valuation of the Company of at
         least $6.0 million resulting in aggregate gross proceeds of at least
         $1.0 million to Supercom Ltd. and $150,000 to the Company and (C) as to
         an additional 159,491 shares subject to the Stock Option immediately
         upon the consummation of a transaction or series of related
         transactions involving the issuance of the Company's equity securities
         at a pre-financing valuation of the Company of at least $12.0 million
         and resulting in aggregate gross proceeds to the Company of at least
         $5.0 million (a "Financing") if such Financing is consummated on or
         before September 6, 2002. The Stock Option shall vest as to the balance
         of the unvested shares on the 15th day after the third anniversary of
         the Commencement Date; provided, further, however, all of the shares
         subject to the Stock Option shall immediately vest (and subject to
         Executive's remaining in continuous employment with the Company): (A)
         immediately prior to the effectiveness of a Change of Control (as
         defined in Section 7 below) of the Company, or (B) upon the
         consummation of a plan relating to the liquidation or dissolution of
         the Company.

<PAGE>

                  (iv) Exercise Period. The agreement evidencing the Stock
         Option will provide that Executive has ten (10) years from the
         Commencement Date to exercise the vested portions of the Stock Option;
         provided, however that Executive shall have five years to exercise any
         vested portion of the Stock Option following the expiration or
         termination of his employment with the Company, after which time the
         vested portion of the Stock Option shall be canceled in its entirety.
         The parties acknowledge that until an agreement evidencing the Stock
         Option is delivered to Executive, the provisions of this Section 5(b)
         represent the Company's obligation to issue the Stock Option to
         Executive and all other material terms and conditions relating to the
         Stock Option.

         (c) Expenses. The Company shall promptly reimburse Executive for all
reasonable business expenses upon the presentation of reasonably itemized
statements of such expenses, together with corresponding receipts, in accordance
with the Company's policies and procedures now in force or as such policies and
procedures may be modified with respect to all senior executive officers of the
Company.

         (d) Benefit Plans. Executive shall be entitled to participate, to the
extent that he is eligible under the terms and conditions thereof, in any
pension, retirement, hospitalization, health insurance, disability or medical
service plan generally available to the United States executive officers or
employees of the Company that may be in effect from time to time during the
Employment Period. The Company represents to Executive that its health insurance
plan generally permits the coverage of Executive's spouse and minor children,
subject to the terms and conditions thereof. The Company shall be under no
obligation to institute or continue the existence of any such employee benefit
described in this paragraph.

         6. Termination. Executive's employment hereunder may be terminated
during the Employment Period under the following circumstances:

         (a) Death. Executive's employment hereunder shall terminate upon his
death.

         (b) Disability. Executive's employment shall terminate ten (10) days
after Notice of Termination (as defined below) is given due to Executive's
Disability. Executive shall be deemed to have a "Disability" for purposes of
this Agreement if he is unable with reasonable accommodation to perform the
essential functions of his job, by reason of physical or mental incapacity, for
a total period of ninety (90) days in any one-year period. The Company shall
determine, according to the facts then available, whether and when the
Disability of Executive has occurred, and such determination shall be made by
the Company's Board of Directors in the exercise of reasonable discretion.

         (c) Cause. The Company shall have the right to terminate Executive's
employment for Cause (as defined). For purposes of this Agreement, the Company
shall have "Cause" to terminate Executive's employment upon:

                  (i) the failure, neglect or refusal by Executive to
         substantially perform any material duty under this Agreement (other
         than Sections 10, 11 or 13, which shall be covered by clause (v) below)
         or to follow any reasonable directive of the Board of Directors that
         remains unremedied for a period of thirty (30) days after the Company
         gives written notice to Executive;

<PAGE>

                  (ii) Executive's conviction of, or plea of guilty or nolo
         contendere to, any crime constituting a felony;

                  (iii) Executive's commission of an act of dishonesty, fraud,
         misrepresentation or other act of moral turpitude, which in the
         reasonable good faith judgment of the Board of Directors constitutes
         grounds for termination;

                  (iv) Executive's willful misconduct provided that the Board of
         Directors reasonably determines that such misconduct is injurious to
         the business or reputation of the Company or its subsidiaries;
         provided, however, that no act, or failure to act, by Executive shall
         be considered "willful" unless committed in bad faith and without a
         reasonable belief that the act or omission was in the best interests of
         the Company; or

                  (v) a breach by Executive of Sections 10, 11 or 13 of this
         Agreement.

         (d) Without Cause. Subject to its compliance with the terms of Section
8 and the other provisions of this Agreement, the Company shall have the right
to terminate Executive without Cause and such termination shall not in and of
itself be deemed to be a breach of this Agreement.

         (e) Good Reason. Executive may terminate his employment for "Good
Reason" within thirty (30) days after Executive has actual knowledge of the
occurrence, without the written consent of Executive, if one of the following
events that has not been cured within thirty (30) days after written notice
thereof has been given by Executive to the Company:

                  (i) the assignment to Executive of duties materially and
         adversely inconsistent with Executive's status and position or a
         material and adverse alteration in the nature of Executive's duties
         and/or responsibilities, reporting obligations, titles or authority;

                  (ii) a reduction by the Company in Executive's Base Salary or
         a failure by the Company to pay any such amounts when due;

                  (iii) the Company's failure to provide the Stock Option or the
         Company's material breach of one or more of the stock option agreements
         pursuant to which the Stock Option was issued to Executive; or

                  (iv) the Company's failure to substantially provide any
         material employee benefits due to be provided to Executive.

         Executive's continued employment during the thirty (30) day period
referred to above in this paragraph (e) shall not constitute Executive's consent
to, or a waiver of rights with respect to, any act or failure to act
constituting Good Reason hereunder.

         (f) Without Good Reason. Executive shall have the right to terminate
his employment hereunder without Good Reason (which shall be defined as any
reason not listed in Section 6(e)) by providing the Company with a Notice of
Termination, and such termination shall not in and of itself be deemed to be a
breach of this Agreement.

<PAGE>

         7. Change of Control. For purposes of this Agreement, a "Change in
Control" of the Company means at any time after the Commencement Date, other
than pursuant to a Financing (as defined above), any person (as defined in
Section 3(a)(9) of the Securities Exchange Act of 1934, as amended ("the
Exchange Act")), or group (as defined in Section 13(d)(3) and 14(d)(2) of the
Exchange Act) other than the Tshuva group and stockholders of the Company as of
the Commencement Date becomes the Beneficial Owner (as defined below), directly
or indirectly, of 50% or more of the total voting stock of the Company,
including by way of merger, consolidation or otherwise.

         The term "Beneficial Owner" means a beneficial owner as defined in
Rules 13d-3 and 13d-5 under the Exchange Act (or any successor rules), other
than the provisions of such rules that a person shall be deemed to have
beneficial ownership of all securities that such person has a right to acquire
within 60 days; provided, however, that a person will not be deemed a beneficial
owner of, or to own beneficially, any securities if such beneficial ownership
(1) arises solely as a result of a revocable proxy delivered in response to a
proxy or consent solicitation made pursuant to, and in accordance with, the
Exchange Act, and (2) is not also then reportable on Schedule 13D or Schedule
13G (or any successor schedule) under the Exchange Act.

         8. Termination Procedure.

         (a) Notice of Termination. Any termination of Executive's employment by
the Company or by Executive during the Employment Period (other than termination
pursuant to Section 6(a)) shall be communicated by written Notice of Termination
(as defined below) to the other party hereto in accordance with Section 17
below. For purposes of this Agreement, a "Notice of Termination" shall mean a
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's employment under the
provision so indicated.

         (b) Date of Termination. "Date of Termination" shall mean (i) if
Executive's employment is terminated by his death, the date of his death, (ii)
if Executive's employment is terminated pursuant to Section 6(b), ten (10) days
after Notice of Termination and (iii) if Executive's employment is terminated
for any other reason, the date on which a Notice of Termination is given or any
later date set forth in such Notice of Termination.

         9. Compensation Upon Termination. If Executive's employment terminates
during the Employment Period, the Company shall provide Executive with the
payments and benefits set forth below.

         (a) Termination By the Company Without Cause or By Executive for Good
Reason. If Executive's employment is terminated hereunder by the Company other
than for Cause, Disability or Death (including, without limitation, if an
arbitrator determines that Executive's employment was terminated hereunder by
the Company other than for Cause or Disability), or by Executive for Good
Reason:

<PAGE>

                  (i) the Company shall pay to Executive in a lump sum a
         severance payment equal to the amount of Base Salary payable to
         Executive for a twelve (12) month period;

                  (ii) the Company shall reimburse Executive pursuant to Section
         5(c) for reasonable expenses incurred, but not paid prior to such
         termination of employment;

                  (iii) Executive shall be entitled to any other rights,
         compensation and/or benefits as may be due to Executive in accordance
         with the terms and provisions of any agreements, plans or programs of
         the Company through and including the Date of Termination; and

                  (iv) the Stock Option shall become fully vested as of the Date
         of Termination.

         If the Company concurrently executes a general release (in a form
reasonably acceptable to the Executive) of all known and unknown claims that the
Company and persons affiliated with the Company may then have against the
Executive and the Company agrees not to prosecute any legal action or other
proceeding based upon any of such claims, payment of the severance payment
provided for in (a)(i) above will be conditional upon Executive's execution of a
general release (in a form reasonably acceptable to the Company) of all known
and unknown claims under this Agreement (other than as a stockholder or option
holder) that Executive may then have against the Company or persons affiliated
with the Company and the Executive having agreed not to prosecute any legal
action or other proceeding based upon any of such claims. The foregoing
notwithstanding, upon the written election of Executive, in his sole discretion,
the total of the benefits payable under this Section 9(a) shall be reduced to
the maximum after tax payment (as determined by Executive and agreed to by the
Board) to the extent the payment of such amounts would cause Executive's total
termination benefits (as determined by Executive's tax advisor) to constitute an
"excess" parachute payment under Section 280G of the Internal Revenue Code of
1986, as amended (the "Code"), and by reason of such excess parachute payment
Executive would be subject to an excise tax under Section 4999(a) of the Code.
If Executive fails to make the election described in this paragraph, no
reduction in the termination benefits payable to Executive shall be made.

         (b) Termination for Cause, Disability, Death or By Executive Without
Good Reason. If Executive's employment hereunder is terminated by the Company
prior to the expiration of the Employment Period for Cause, Disability or by
Executive (other than for Good Reason) or due to Executive's death:

                  (i) the Company shall pay Executive (or his estate) his Base
         Salary through the Date of Termination, as soon as practicable
         following the Date of Termination;

                  (ii) the Company shall reimburse Executive pursuant to Section
         5(c) for reasonable expenses incurred, but not paid prior to such
         termination of employment, unless such termination resulted from a
         misappropriation of Company funds;

<PAGE>

                  (iii) Executive shall be entitled to any other rights,
         compensation and/or benefits as may be due to Executive in accordance
         with the terms and provisions of any agreements, plans or programs of
         the Company through and including the Date of Termination; and

                  (iv) the unvested portion of the Stock Option shall
         immediately cease to vest and be automatically terminated.

         10. Confidentiality. Executive shall regard and retain as confidential,
and will not divulge to any third party or use for any purpose other than for
the benefit of the Company in connection with the fulfillment of the Executive's
duties under this Agreement or with the prior written consent of the Board, any
information concerning the Company, including without limitation, trade secrets,
strategies, studies, know-how, techniques, marketing plans and opportunities,
cost and pricing data, forecasts, customer lists, developments, improvements,
discoveries, patents, patent applications, technologies, processes, research,
methods, procedures, designs, models, testing systems, computer software and
programs (including source code and related documentation), test and/or
experimental data and results, laboratory notebooks, drawings, technical
information or any proprietary materials or information that he has acquired
while providing the services to the Company, or related to the services provided
under this Agreement ("Confidential Information"), or any information identified
by the Company or any of its affiliates as Confidential Information. Nothing in
this Agreement is intended to grant any rights to Executive under any patent,
mask work, or copyright of the Company, nor shall this Agreement grant Executive
any right in or to Confidential Information except as expressly set forth
herein. Like all Company employees, Executive will be required, as a condition
to his employment with the Company, to sign and comply with the Company's
standard Proprietary Information and Inventions Assignment Agreement (in the
form executed by the Executive concurrently with this Agreement).

         11. Non-Solicitation/Non-Interference and Non-Competition.

         (a) During the Employment Period and for a period of twelve (12) months
thereafter, neither Executive nor any of his affiliates shall, whether for his
own account or for the account of any other person (a) endeavor to entice away
from the Company or any of its affiliates, or otherwise interfere with the
relationship of the Company or any of its affiliates with (i) any person,
entity, lessor, licensor, manufacturer, supplier or other business organization
which is or becomes employed by or otherwise engaged to perform services for the
Company or any of its affiliates, or (ii) any person or entity that is or
becomes a customer, client or licensee of the Company or any of its affiliates
on the date hereof or at any time during the Employment Period, or (b) interfere
with or solicit with a view toward enticing from the Company any person who is
or becomes an employee or consultant on the date hereof or at any time during
the Employment Period.

         (b) During the Employment Period and for a period of twelve (12) months
thereafter, neither Executive nor any entity of which the Executive is the
Beneficial Owner of 25% or more of such entity's total voting stock shall,
whether for compensation or without compensation, directly or indirectly, as an
owner, individual proprietor, principal, partner, employee, stockholder,
director, officer, independent contractor, consultant, joint venturer, investor,
licensor, lender or in any other capacity whatsoever, alone, or in association
with any other person, carry on, be engaged or take part in, or render services
or advice to, own, share in the earnings of, invest in the stocks, bonds or
other securities of any person (other than the Company) engaged in the
Restricted Activities in the Restricted Areas. "Restricted Activities" shall
mean brand protection through RF tagging and the tracking and tracing of
chemical solutions. "Restricted Areas" shall mean the United States, Europe and
Israel. Notwithstanding the foregoing, Executive shall not be deemed to have
breached his obligations under this Section 11(b): (i) through the record or
beneficial ownership by Executive or his affiliates of any investment in any
corporation having securities that are publicly traded on a national securities
exchange or in the over-the-counter market or any entity that derives less than
10% of its revenues from the Restricted Activities in the Restricted Areas or
(ii) by serving as a director, employee, independent contractor, consultant,
licensor, lender or other capacity to any entity that derives less that 10% of
its revenues from the Restricted Activities in the Restricted Areas provided
that Executive's capacity with such entity is not directly related to such
Restricted Activities.

<PAGE>

         12. Remedies. Executive acknowledges and agrees that the covenants set
forth in Sections 10 and 11 of this Agreement (collectively, the "Restrictive
Covenants") are reasonable and necessary for the protection of the proprietary
interests and other legitimate business interests of the Company and its
affiliates, that irreparable injury will result to the Company and its
affiliates if Executive breaches any of the Restrictive Covenants, and that in
the event of Executive's actual or threatened breach of any such Restrictive
Covenants, the Company and its affiliates will not have an adequate remedy at
law. Executive accordingly agrees that in the event of any actual or threatened
breach by Executive of any of the Restrictive Covenants, notwithstanding the
obligation to seek arbitration under this Agreement pursuant to Section 15, the
Company and its affiliates shall be entitled to injunctive relief, specific
performance and other equitable relief, without bond and without the necessity
of showing actual monetary damages, subject to hearing as soon thereafter as
possible. Nothing contained herein shall be construed as prohibiting the Company
and its affiliates from pursuing any other remedies available to them for such
breach or threatened breach, including but not limited to the recovery of
damages. Any provision of Section 11 that is prohibited or declared
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
only to the extent of such prohibition or unenforceability, without invalidating
the remaining provisions hereof or affecting the validity or enforceability of
such provision in any other jurisdiction. If any court determines that any of
the noncompetition covenants, or any part thereof, contained in Section 11 are
unenforceable because of the duration of such provision or the product area
covered thereby, such court shall have the power, and the parties intend and
desire that such court exercise such power, to reduce the duration or coverage
of such provision to the minimum extent necessary to render such provision
enforceable, and in its reduced form, such provision shall then be enforceable
and shall be enforced.

         13. No Conflicting Obligations. Executive represents that the services
to be provided by him to the Company will not require him to violate or breach
any obligation to or agreement or confidence with any previous employer or any
other third party.Executive will not disclose to the Company any confidential
information or material belonging to a third party, including that belonging to
any prior or present employer or contractor, unless Executive has first received
the written approval of that third party and presents such approval to the
Company.

<PAGE>

         14. Indemnification. If Executive requests that the Company obtain a
reasonable director's and officer's liability insurance policy from a reputable
insurer with at least $5.0 million of coverage, or that the Company enter into
reasonable directors and officers indemnification agreement with Executive, the
Board of Directors will use its good faith efforts to do so.

         15. Arbitration. Subject to Section 12, any controversy between
Executive and the Company involving the construction or application of any of
the terms, provisions or conditions of this Agreement, including, without
limitation, the determination of whether a "Disability" or "Cause" existed under
Section 6(b) or 6(c) of this Agreement at the time of any termination, shall, on
the written request of either party served on the other in accordance with
Section 17 below, be submitted to binding arbitration. EACH PARTY, BY SIGNING
THIS AGREEMENT, VOLUNTARILY, KNOWINGLY AND INTELLIGENTLY WAIVES ANY RIGHTS SUCH
PARTY MAY OTHERWISE HAVE TO SEEK REMEDIES IN COURT OR OTHER FORUMS, INCLUDING
THE RIGHT TO A JURY TRIAL. The arbitration shall comply with and be governed in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association (the "AAA"). The arbitration will be conducted only in New York, New
York, before a single arbitrator selected by the parties or, if they are unable
to agree on an arbitrator, before an arbitrator selected by the AAA. The
arbitrator shall have full authority to order specific performance and award
damages and other relief available under this Agreement or applicable law, but
shall have no authority to add to, detract from, change or amend the terms of
this Agreement or existing law. All arbitration proceedings, including
settlements and awards, shall be confidential. The decision of the arbitrator
will be final and binding, and judgment on the award by the arbitrator may be
entered in any court of competent jurisdiction. THIS SUBMISSION AND AGREEMENT TO
ARBITRATE WILL BE SPECIFICALLY ENFORCEABLE. The arbitrator will have no power to
ignore or vary the terms of this Agreement and any other agreement between
Executive and the Company and will be bound to apply controlling law. The
arbitrator shall award to the party which it views as prevailing in any such
arbitration the costs of arbitration, including reasonable attorney's fees and
costs, from the losing party.

         16. Successors; Binding Agreement. No rights or obligations of the
Company under this Agreement may be assigned or transferred except that, without
limiting Executive's rights under this Agreement upon a Change of Control, the
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, "Company" shall mean the Company as herein before defined and any
successor to its business and/or assets (by merger, purchase or otherwise) which
executes and delivers the agreement provided for in this Section 16 or which
otherwise becomes bound by all the terms and provisions of this Agreement by
operation of law. No rights or obligations of Executive under this Agreement may
be assigned or transferred except that upon Executive's death, all rights of
Executive hereunder shall inure to the benefit of Executive's estate in
accordance with applicable laws of descent and distribution.

<PAGE>

         17. Notices. For the purposes of this Agreement, notices, demands and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered either personally or by
United States certified or registered mail, return receipt requested, postage
prepaid, or overnight courier addressed as follows:

                  If to Executive:

                  Elie Housman
                  600 West End Avenue
                  New York, New York 10024
                  Telecopy:  (212) 724-6762

                  If to the Company:

                  InkSure Technologies Inc.
                  9 West Railroad Avenue
                  Tenafly, New Jersey 07670

or to such other address as any party may have furnished to the others in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt. Each such notice or other communication shall
for all purposes of this Agreement be treated as effective or having been given
(i) when delivered if delivered personally, (ii) if sent by mail, at the earlier
of its receipt or seven business days after the same has been deposited in a
regularly maintained receptacle for the deposit of the United States mail,
addressed and postage prepaid as aforesaid, or (iii) if sent by overnight
courier, one day after the same has been deposited with a nationally recognized
courier service.

         18. Waiver. No provisions of this Agreement may be amended, modified,
or waived unless such amendment or modification is agreed to in writing signed
by Executive and by a duly authorized officer of the Company (other than
Executive), and such waiver is set forth in writing and signed by the party to
be charged. No waiver by either party hereto at any time of any breach by the
other party hereto of any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time.

         19. Survival. Except as otherwise expressly set forth herein, the
respective rights and obligations of the parties under this Agreement shall
survive Executive's termination of employment and the termination of this
Agreement to the extent necessary for the intended preservation of such rights
and obligations.

         20. Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of New
York without regard to its conflicts of law principles.

<PAGE>

         21. Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

         22. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. Facsimile signatures will
be deemed to be effective originals hereunder.

         23. Entire Agreement. This Agreement sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto in respect of such
subject matter. Any prior agreement of the parties hereto in respect of the
subject matter contained herein is hereby terminated and canceled.

         24. Withholding. All payments hereunder shall be subject to any
required withholding of Federal, state and local taxes pursuant to any
applicable law or regulation.

         25. Section Headings. The section headings in this Agreement are for
convenience of reference only, and they form no part of this Agreement and shall
not affect its interpretation.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above written.

                                        INKSURE TECHNOLOGIES INC.

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        ----------------------------------------
                                        ELIE HOUSMANexv4w4

 

EXHIBIT 4.4

THE CONVERTIBLE DEBENTURE CONTRACT (DEBENTURE “B”) DATED JULY 2, 2002.

CONVERTIBLE DEBENTURE

	 	 	 
	July 2, 2002	 	
US$(amount)

THIS CONVERTIBLE DEBENTURE (this
“Debenture”) is executed and delivered, as of
July 2, 2002, by BINGO.COM, INC., a Florida corporation (the “Company”), as to
US$(amount) to (HOLDERS NAME) of (Holders
address) (the “Holder”).

WHEREAS, the Holder has agreed to make a loan to the Company in an amount of
US$(amount) on the terms and conditions set forth herein;

NOW THEREFORE, in consideration of the mutual agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Holder hereby agrees as follows:

Section 1.     PROMISE TO PAY.

The Company promises to pay to the Holder an amount equal (amount in writing)
(U.S. $(amount)), together with simple interest at the fixed rate per annum
(the “Interest Rate”) of twelve percent (12%), with interest accruing and
payable on the outstanding principal amount of this Debenture, as further set
forth herein.

Section 2.     PAYMENT.

(a)     The Company shall pay the then outstanding principal amount of this
Debenture on July 2, 2006 in the manner set out in Section 2(b)(1). Interest
shall accrue on the principal amount from time to time outstanding under this
Debenture at the Interest Rate from the date hereof through July 2, 2004 (the
“Accrued Interest Payment Date”), but such accrued interest shall not be
payable until the Accrued Interest Payment Date. Thereafter, interest shall
accrue at the Interest Rate and be payable on the first business day (the
“Payment Date”) of each succeeding quarter through and including July 2, 2006
(each such payment date being referred to herein as a “Payment
Date”). All
principal, accrued but unpaid interest and any other amounts due hereunder
shall be due and payable at maturity on July 2, 2006.

-27-

 

(b)(1)     The Company shall pay the accrued interest on the Accrued Interest
Payment Date and shall pay all other interest thereafter accrued, at the
Company’s option, in (i) cash in lawful money of United States of America, (ii)
common stock of the Company (“Company Common Stock”) or (iii) a combination of
both cash and Company Common Stock. Any amounts remaining unpaid on this
Debenture on the maturity date hereof, whether principal, interest or other
amounts due hereunder, shall be paid in full in cash or Company Common Stock on
such date. Any Company Common Stock delivered to the Holder in payment of this
Debenture as described above will be valued at $0.25 per share (“Valuation
Price”). The Company Common Stock is listed on the OTC Bulletin Board and the
Company shall take all reasonable steps to maintain such listing. Such Valuation
Price shall be equitably adjusted in the case of a Corporate Event (as
hereinafter defined) in the manner provided in paragraph (d) below.

(b)(2)     The Company hereby grants to the Holder an option pursuant to which the
Holders will have the right, but not the obligation, to elect, until the third
(3rd) anniversary of the date of this Debenture, to convert any or all of the
principal amount of this Debenture into shares of Company Common Stock at a
conversion price of $0.15 per share (the “Conversion Price”), exercisable by
written notice to the Company. Such Conversion Price shall be equitably adjusted
in the case of a Corporate Event (as hereinafter defined) in the manner
provided in paragraph (d) below.

(c)     In order to make any payments on this Debenture in Company’s Common Stock
as described above, the Company will take, until the date on which all
principal and interest on this Debenture is fully repaid, all actions necessary
or appropriate to reserve for issuance that number of shares of Company Common
Stock sufficient to permit the Company to fulfill its obligations under this
Debenture. If the Holder elects to (i) have the Company pay any portion of
accrued interest (as provided in subsection (b)(1) above), principal (upon
conversion) as provided for in subsection (b)(2) above on this Debenture or
(ii) exercise the Warrants (as defined below) by delivering shares of Company
Common Stock to the Holder, the Company shall promptly take all steps required
to cause the Holder to be issued a sufficient number of shares of Company’s
Common Stock.

(d)     If, at any time after the date hereof and prior to the date on which all
principal and interest on this Debenture is paid in full, the Company effects a
dividend or other distribution upon or in redemption of Company Common Stock
payable in Company Common Stock, other securities or other property, a
combination of outstanding shares of Company Common Stock into a smaller number
of shares of Company Common Stock, or any reorganization, split, exchange or
reclassification of Company’s Common Stock, or any consolidation or merger of
the Company with another corporation, or the sale of all or substantially all
of its assets to another corporation, in such a way that holders of outstanding
Company Common Stock shall be entitled to receive (either directly, or upon
subsequent liquidation) stock, securities or other property with respect to or
in exchange for Company Common Stock (any such event described in the foregoing
clauses being referred to as a “Corporate Event”), then as a condition of such
Corporate Event, lawful, appropriate, equitable and adequate provisions shall
be made to the terms of paragraphs (b) and (c) above whereby the Holder shall
thereafter be entitled to receive on each Payment Date (or, if applicable, the
Accrued Interest Payment Date) (under the same terms otherwise applicable to
its receipt of Company Common Stock), in lieu of or in addition to, as the case
may be, the payments specified in paragraphs (b) and (c) above, such cash,
stock, securities or other property which, when valued in a fair and equitable
manner consistent with the purposes and intent of this Debenture and when added
to the amounts being paid or Company Common Stock being issued on such Payment
Date (or, if applicable, the Accrued Interest Payment Date), discharges the
full amount of the accrued interest and principal (with respect to the maturity
date hereof) due on such date.

(e)     All payments due hereunder, whether made in the form of cash or
delivery of Company Common Stock, shall be made to the Holder’s address for
notices set forth below or at such other place as the Holder may designate to
the Company in writing.

Section 3.     VOLUNTARY PREPAYMENT.

The Company may prepay this Debenture in full or in part at any time, provided
that any such prepayment must be made in cash after providing notice to holder
of 10 working days, unless otherwise agreed to by the Holder.Early payments
under this Debenture shall not relieve the Company of its obligation to
continue to make regularly

-28-

 

scheduled payments as required herein, but shall
instead reduce the principal balance due, and the Company may be required to
make fewer payments under this Debenture.

Section 4.     REPRESENTATIONS, WARRANTIES AND COVENANTS.

The Company represents, warrants and covenants to the Holder as of the date of
this Debenture:

(a)     Organization.
The Company is a corporation which is duly organized, validly
existing and in good standing under the laws of the State of Florida.

(b)     Authorization.
The Company’s execution, delivery and performance of this
Debenture has been duly authorized and does not conflict with, and will not
result in a violation of, or constitute or give rise to an event of default
under, the Company’s articles of incorporation or by-laws. Furthermore, the
execution, delivery and performance by the Company of this Debenture does not
conflict with, and will not result in a violation of, or constitute or give
rise to an event of default under any agreement or other instrument which may
be binding upon the Company or under any law or governmental regulation or
court decree or order applicable to the Company and/or its
properties. The Company has the power and authority to enter into the obligations evidenced by
this Debenture. The Company has the power and authority to own and to hold all
of its assets and properties and to carry on its business as presently
conducted. All consents and approvals required to be obtained in connection with
the execution and delivery of this Debenture and the Warrants have been
obtained.

(c)     Issued
Shares. All shares of Company Common Stock to be delivered to the
Holder pursuant to the terms of this Debenture, when issued and delivered in
accordance with the terms hereof, will be duly authorized, validly issued,
fully paid, nonassessable and free of any pre-emptive or similar rights.

(d)     Exchange Act
Reports. The Company has duly filed with the Securities and
Exchange Commission (the “SEC”) all reports, schedules, forms, statements and
other documents required to be filed by it under the Securities Exchange Act of
1934 (“Exchange
Act Reports”) since January 1, 1998. As of their respective dates, all such
Exchange Act Reports filed by the Company since such date complied in all
material respects with the requirements of the Securities Exchange Act of 1934
and the rules and regulations of the SEC promulgated thereunder applicable to
such Exchange Act Reports, and none of such Exchange Act Reports contained any
untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

(e)     Binding
Effect. This Debenture constitutes the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, except that such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
creditors’ rights generally and (ii) equitable principles that may limit the
availability of certain equitable remedies (such as specific performance) in
certain instances.

(f)     Warrants. The Company shall execute and deliver, on the date hereof, a
warrant agreement (the “Warrant Agreement”), a form of which is set forth as
Exhibit A hereto, providing for, among other things, the issuance to Holder of
warrants (the “Warrants”) to purchase ($(amount)x4) shares of Company Common
Stock at an exercise price of $0.25 per share. Such warrants shall be
exercisable for two years from the date of this Debenture.

The Company agrees that the foregoing representations, warranties and covenants
shall be continuing in nature and shall remain in full force and effect until
such time as this Debenture shall be paid in full. The Company agrees to notify
the Holder immediately of any breach by the Company of any representation,
warranty or agreement of the Company contained herein or should any
representation, warranty or agreement made herein become untrue or false at any
time. The Company further agrees to indemnify and hold the Holder harmless
against any breach by the Company of any representation, warranty or covenant
of the Company contained in this Debenture.

-29-

 

Section 5.     REGISTRATION RIGHTS

(a)     At the Company’s sole expense (except for underwriting discounts and
commissions) the Company agrees to take all reasonable actions (including
preparing and filing with the SEC a registration statement (the “Registration
Statement”) on an annual basis and the prospectus forming a part thereof) as
may be necessary to have such registration statement declared effective by the
SEC at the earliest date practicable and to keep such registration statement
effective, and to comply with the provisions of the Securities Act of 1933 (the
“Securities Act”) and all applicable rules and regulations promulgated
thereunder in order to permit the Holder during such period to resell or
otherwise dispose of all of their Registered Shares (as defined below), without
further registration of the Registered Shares under the Securities Act;
provided that, before filing any such amendment or supplement, the Company will
furnish the Holder with copies of all such documents proposed to be filed and
will consider in good faith any written comments or suggested changes thereto
made by counsel designated by the Holder. Without limiting the generality of the
foregoing, the Company shall amend or supplement the Registration Statement to
increase the number of shares subject to resale by the Holder thereunder in the
event that the number of Registered Shares exceeds the number disclosed
thereunder as being available for resale by the Holder. “Registered Shares”
means all shares of Company Common Stock acquired by the Holder pursuant to the
terms of this Debenture (1) exercise of the conversion option by the Holder
with respect to the principal of this Debenture, (2) the Company’s election to
pay accrued interest in the form of shares of Company Common Stock or (3) upon
exercise of the Warrants.

(b)     Following any resale by the Holder of Registered Shares pursuant to the
Registration Statement, the Holder shall notify the Company of the number of
Registered Shares sold and the date thereof. Nothing herein shall be deemed to
require the Holder to notify the Company of any sale of Registered Shares
pursuant to Rule 144 and Regulations promulgated under the Securities Act, an
exemption from the registration requirements of the Securities Act or any other
means (other than pursuant to the Registration Statement).

(c)     The Company agrees to take all other reasonable steps to ensure that the
Holder’s resale of Registered Shares under the Registration Statement is
effected in accordance with the Securities Act and the regulations promulgated
thereunder, including:

(i)     promptly filing all Exchange Act Reports as may be necessary to update the
information relating to the Company included in the Registration Statement;

(ii)     promptly furnishing to the Holder such number of copies of such
Registration Statement, each amendment and supplement thereto, the prospectus
included in such Registration Statement and such other documents as the Holder
may reasonably request in order to facilitate the disposition of Registered
Shares;

(iii)     using its reasonable efforts to register or qualify the resales under
state securities or “blue sky” laws and taking any and all other acts that may
be necessary or advisable to enable the Holder to consummate such resales in
such jurisdictions, provided however, that the Company will not be required to
qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subparagraph or subject itself to
taxation in any such jurisdiction; notifying the Holder, at any time when a
prospectus relating thereto is required to be delivered by the Holder under the
Securities Act in connection with a resale of Registered Shares, of the
occurrence of any event as a result of which the prospectus included in the
Registration Statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading, and, at the
request of the Holder, preparing a supplement or amendment to such prospectus
or file an Exchange Act Report so that, as thereafter delivered to the
purchasers of such stock, such prospectus will not contain an untrue statement
of a material fact or omit to state any fact necessary to make the statements
therein not misleading;

(iv)     otherwise using its reasonable commercial efforts to comply with all
applicable rules and regulations of the SEC; and

(v)     in the event of the issuance of any stop order suspending the effectiveness
of the Registration Statement, or of any order suspending or preventing the use
of any related prospectus or suspending the qualification of any

-30-

 

Company Common
Stock registered under such Registration Statement for sale in any
jurisdiction, using its reasonable commercial efforts promptly to obtain the
withdrawal of such order.

Section 6.     MERGER.

Notwithstanding any provision herein to the contrary, the Company shall not
consolidate or merge into or with any other person unless such person expressly
assumes all of the obligations of the Company under this Debenture.

Section 7.     DEFAULT.

The following actions and/or inactions shall constitute events of default under
this Debenture:

(a)     Default Under
This Debenture. Should the Company (i) default in the payment
of any installment of principal or interest as and within five (5) days of when
due, (ii) default in the payment of any other amount due under this Debenture
as and when due or (iii) default in the performance of any other covenant,
condition or agreement (including a Holder’s conversion option) contained in
this Debenture or the Warrant Agreements and such default shall remain
unremedied fifteen (15) days after the occurrence thereof.

(b)     Default in
Favor of Third Parties. Should the Company default under any
loan, extension of credit, security agreement, purchase or sales agreement or
any other agreement in favor of any other creditor or person that materially
impairs the ability of the Company to perform its obligations hereunder.

(c)     Insolvency. Should the suspension, failure or insolvency, however evidenced,
of the Company occur or exist.

(d)     Readjustment of
Indebtedness. Should proceedings for readjustment of
indebtedness, reorganization, bankruptcy, composition or extension under any
insolvency law be brought by or against the Company, unless, if brought against
the Company, such proceedings are dismissed within sixty (60) days after the
filing thereof.

(e)     Assignment for
Benefit of Creditors. Should the Company file proceedings for
a respite from or make a general assignment for the benefit of creditors.

(f)     Receivership.
Should a receiver of all or any material portion of the
property or assets of the Company be applied for or appointed.

(g)     Dissolution
Proceedings. Should proceedings for the dissolution or
appointment of a liquidator of the Company be commenced.

(h)     False
Statements. Should any representation, warranty or material statement
of the Company made in writing in connection with the obligations evidenced by
this Debenture prove to be incorrect or misleading in any material respect when
made.

Section 8.     HOLDERS’ RIGHTS UPON DEFAULT.

Should any one or more events of default occur or exist under this Debenture as
provided above, the Holder shall have the right, at his sole option, to
formally declare this Debenture to be in default and to accelerate the maturity
and insist upon immediate payment in full in cash of the principal balance then
outstanding under this Debenture plus accrued interest, together with
reasonable attorney’s fees, costs, expenses and other fees and charges as
provided herein, to be immediately due and payable, subject to the Companies
right of payment in Section 2(b)(1).

-31-

 

Section 9.     WAIVERS.

The Company hereby waives presentment for payment, protest, notice of protest
and notice of nonpayment. The Company agrees that the Holders acceptance of
payment other than in accordance with the terms of this Debenture, or the
Holders subsequent agreement to extend or modify such repayment terms, or the
Holder’s failure or delay in exercising any rights or remedies granted to the
Holder, shall not have the effect of releasing the Company from its obligations
to the Holder. In addition, any failure or delay on the part of the Holder to
exercise any of the rights and remedies granted to the Holder shall not have
the effect of waiving any of the Holders’ rights and remedies. Any partial
exercise of any rights and/or remedies granted to the Holder shall furthermore
not be construed as a waiver of any other rights and remedies, it being the
Company’s intent and agreement that the Holders’ rights and remedies shall be
cumulative in nature. The Company further agrees that, should any event of
default occur or exist under this Debenture, any waiver or forbearance on the
part of the Holder to pursue the rights and remedies available to the Holder
shall be binding upon the Holder only to the extent that the Holder
specifically agrees to any such waiver or forbearance in writing. A waiver or
forbearance on the part of the Holder as to one event of default shall not be
construed as a waiver or forbearance as to any other event of default.

Section 10.     ATTORNEYS’ FEES.

If the Holder refers this Debenture to an attorney for collection, or files
suit against the Company to collect this Debenture, or if the Company files for
bankruptcy or other relief from creditors, the Company agrees to pay the
Holders’ reasonable attorneys’ fees. The Company shall not reimburse the Holder
for any fees or expenses of the Holders’ outside counsel incurred in connection
with the preparation, negotiation, execution and delivery of this Debenture.

Section 11.     NOTICES.

Any notice or demand which, by provision of this Debenture, is required or
permitted to be served by one party hereto to or on the other party hereto
shall be deemed to have been sufficiently given and served for all purposes (if
mailed) three (3) calendar days after being deposited, postage prepaid, in the
United States mail, registered or certified mail, or (if delivered by express
courier) one (1) business day after being delivered to such courier, or (if
delivered in person) the same day as delivery, in each case addressed (until
another address is given in writing by one party hereto to the other party
hereto) as follows:

If to the Company:

	 	 
	 	Bingo.com, Inc.

Suite 1405 — 1166 Alberni Street

Vancouver, BC

Canada, V6E 3Z3
	 	 
	If to the Holder:	 
	 	 
	 	(holders name)

(holders address)

Section 12.     GOVERNING LAW.

The Company agrees that this Debenture and the obligations evidenced hereby
shall be governed under the laws of the State of Florida.

Section 13.     SUCCESSOR AND ASSIGNS LIABLE.

The Company’s obligations and agreements under this Debenture shall be binding
upon the Company’s successors and permitted assigns. The rights and remedies
granted to the Holder under this Debenture shall inure to the benefit

-32-

 

of the Holders’ respective successors and assigns, as well as to any subsequent holder
or holders of this Debenture and permitted assignees of the Warrants.

Section 14.     CAPTION HEADINGS.

     Caption headings of the sections of this Debenture are for convenience
purposes only and are not to be used to interpret or to define their
provisions. In this Debenture, whenever the context so requires, the singular
includes the plural and the plural also includes the singular.

Section 15.     SEVERABILITY.

If any provision of this Debenture is held to be invalid, illegal or
unenforceable by any court, that provision shall be deleted from this Debenture
and the balance of this Debenture shall be interpreted as if the deleted
provision never existed.

IN WITNESS WHEREOF, the Company and the Holder have each duly executed this as
of the date first written above.

	 	 	 
	 	COMPANY:
	 	 
	 	BINGO.COM, INC.
	 	 
	 	By:	 
	 	 	

        Name:

        Title:
	 	 
	 	 
	  	HOLDER:
	 	 
	  	By:	 
	 	 	

        Name:

        Title:

-33-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]