Document:

EXHIBIT 4.1

EXHIBIT 4.1

PROMISSORY NOTE

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED (THE "FEDERAL ACT"), THE GEORGIA SECURITIES ACT OF 1973, AS AMENDED, OR ANY OTHER STATE SECURITIES LAW.  THIS PROMISSORY NOTE HAS BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, HYPOTHECATED, SOLD, OR TRANSFERRED, NOR WILL ANY ASSIGNEE OR TRANSFEREE HEREOF BE RECOGNIZED BY THE MAKER HEREOF AS HAVING ANY INTEREST IN THIS PROMISSORY NOTE, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THIS PROMISSORY NOTE UNDER ANY APPLICABLE STATE LAW AND THE FEDERAL ACT OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE MAKER THAT SUCH REGISTRATION IS NOT REQUIRED BY REASON OF AN EXEMPTION FROM REGISTRATION UNDER ANY APPLICABLE STATE LAW AND THE FEDERAL ACT.

Atlanta, Georgia

October 5, 2005

For value received, SPECTRX, INC., a Delaware corporation (the "Company"), promises to pay to the order of Leif Bowman, an individual resident with an address of  25728 Wilde Ave, Steveson Ranch, CA 91381 and Mark A. Samuels an individual resident with an address of  4400 Missendell Lane, Norcross, GA 30092  (the "Noteholders"), the principal sum of THIRTY  THOUSAND AND NO/100 DOLLARS ($30,000) each (for a total of $60,000), plus interest on the dates and in the amounts described below.  

The Company promises to pay interest monthly in arrears (on the first business day of each month, commencing November, 2005), such interest calculated at an annual  rate of fifteen percent (15%), and to pay any remaining principal and interest  due under this Note, on the earlier  to occur of  (a) January 5, 2006  or  (b) 10 days after the closing and funding of any  financing in which the Company receives at least $500,000 in net proceeds.  All such payments of principal and interest shall be made in lawful money of the United States in Federal or other immediately available funds to each Noteholder at SpectRx, Inc., 4955 Avalon Ridge Parkway, Suite 300, Norcross, GA  30071, or such other address as may be specified from time to time as the Noteholders hereof may designate in writing.  All payments shall be paid prorata to each Noteholder in proportion to such Noteholders funding.  Any payments received hereunder by a Noteholder other than in accordance with the immediately preceding sentence shall be deemed held by such Noteholder in trust ratably for the benefit of each Noteholder.

Should any installment not be paid when due, then the entire unpaid principal sum evidenced by this note, with all accrued interest, shall, at the option of the Noteholders, and with 10 days notice to the undersigned, become due and may be collected forthwith, time being of the essence of this contract.  It is further agreed that failure of the Noteholders to exercise this right of accelerating the maturity of the debt, or any indulgence granted from time to time, shall in no event be considered as a waiver of such right of acceleration or estop the Noteholders from exercising such right.

At the option of the Company, all or any portion of the unpaid principal sum of, or accrued interest on, the indebtedness represented hereby may be prepaid  from time to time without premium, penalty or payment of unaccrued interest.

A Security Agreement of even date herewith has been executed in conjunction with this Note to provide security and collateral for this Note. 

In case this Note is collected by action at law, or through an attorney at law, all costs of collection, including reasonable attorney's fees, shall be paid by the Company.  Any reasonable fees or actual costs incurred by Noteholder in conjunction with funding this Note shall be paid by the Company. 

The Company hereby waives and renounces any and all exemption rights it may have under or by virtue of the Constitution or laws of Georgia, or any other State, or the United States, as against this debt or any renewal thereof; and further waives demand, protest and notice of demand, protest and non-payment.

In case of default in the payment after demand therefor, and in case the Noteholders of this note should elect, on account of such default, to declare the unpaid balance of the principal sum due and payable, said principal sum, or so much thereof as may remain unpaid at the time of such default, shall bear interest at the rate of eighteen  percent  (18%) per annum from the date of such default. 

Any waiver of a right hereunder by a Noteholder shall be effective only against such Noteholder.

This contract is to be construed in all respects and enforced according to the laws of the State of Georgia.

 

[SIGNATURE ON FOLLOWING PAGES]

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed, under seal, by its duly authorized officer as of the day and year first above written.

SPECTRX, INC.     (Corporate SEAL)

BY: 

      /s/ Siraj Noorani

TITLE:    Controller and Principal Accounting  Officer

 

SECURITY AGREEMENT

 

 

This SECURITY AGREEMENT is made on this 5th day of  October, 2005 between  SpectRx, Inc. ("Debtor"),  and  Mark A. Samuels and Leif  Bowman (together the "Secured Parties"). 

1.  SECURITY INTEREST.  Debtor hereby grants to the Secured Parties a second security interest (subordinate to the note for $ 100,000 issued September 6, 2005)  in the right of Debtor to receive payments after the date hereof pursuant to Sections 2.3 and 2.4 of that certain Asset Purchase Agreement, dated March 6, 2003, between Debtor and Respironics, Inc., a Delaware corporation ("Respironics"), but excluding for the avoidance of doubt any amounts previously advanced by Respironics against such payments, whether pursuant to that certain agreement, dated June 27, 2005, between Debtor and Respironics or otherwise and a first security interest in all other assets of the company.

The Security Interest shall secure the payment and performance of Debtor's promissory note of even date herewith in the aggregate principal amount of  Sixty Thousand ($60,000) Dollars ($30,000 owed to each of the Secured Parties) (the "Note") and the payment and performance of all other liabilities and obligations of Debtor to the Secured Parties of every kind and description, direct or indirect, absolute or contingent, due or to become due now existing or hereafter arising under the Note.

 

2.  COVENANTS. Debtor hereby warrants and covenants:  (a) the Debtor will not sell, dispose, or otherwise transfer the Collateral, or any interest therein, without the prior written consent of each Secured Party, and the Debtor shall keep the collateral free from unpaid charges (including rent), taxes, and liens; (b) the Debtor shall execute alone or with the Secured Parties a Uniform Commercial Code financing statement and pay the cost of filing the same in all public offices wherever filing is deemed by a Secured Party to be necessary. 

 

3.  DEFAULT. The Debtor shall be in default under this Agreement upon the happening of any of the following: (a) any noncompliance with or nonperformance of the Debtor's obligations under the Note or this Agreement, or (b) an assignment of assets is made by the Company for the benefit of creditors, or (c) an attachment or receivership of the Company's assets not dissolved within ninety (90) days, or (d) the institution of bankruptcy proceedings in respect of the Company, whether voluntary or involuntary, which is not dismissed within ninety (90) days from the date on which it is filed. Upon default and at any time thereafter, either Secured Party may declare all obligations secured hereby immediately due and payable and shall have the remedies of a Secured Party under the Uniform Commercial Code.  Any waiver by the Secured Parties of any right hereunder shall require the consent of both Secured Parties, and no waiver by the Secured Parties of any default shall operate as a waiver of any other default or of the same default on a future occasion. This Agreement shall inure to the benefit up and bind the heirs, executors, administrators, successors, and assigns of the parties. This Agreement shall have the effect of an instrument under seal. 

SPECTRX, INC.

/s/ Siraj Noorani

_______________________________

Controller and Principal Accounting OfficerEXHIBIT 10.4

                              ENGAGEMENT AGREEMENT

                                 August 15, 2005

SRINI CHARI
100 WOODCREST DRIVE
DANBURY, CT 06810

         In  consideration of the premises and the mutual promises and covenants
contained herein and for other good and valuable consideration,  TURBOWORX, INC.
(the "Company") and you agree as follows:

         1.  POSITION AND RESPONSIBILITIES.

         1.1 The Company  will  engage  you,  and you agree to be engaged by and
serve the  Company,  as an  officer of the  Company.  You will have the title of
President and Chief Executive Officer, reporting to the Chairman of the Board of
Directors.  As President and CEO, you will serve on the Board of Directors,  and
you will be responsible for general and active management of the business of the
Company  and for  ensuring  that all  orders  and  resolutions  of the  Board of
Directors  are carried into effect.  You will also be expected to build and lead
an executive team that will:  (1) Formulate and articulate the company's  vision
and mission;  (2) Formulate and execute major policies,  programs and objectives
to promote  and ensure the  company's  success  and growth;  (3)  Formulate  and
execute  strategic  and  tactical  operational  plans  for  the  company,   with
particular  emphasis on growing revenue and expanding into new markets;  and (4)
Raise  additional  cash equity  investment.  In addition,  you will perform such
other  services as may be requested  from time to time by the Board of Directors
of the Company.  You will perform these duties in Shelton,  Connecticut  or such
other place as you and the Company shall mutually agree.

         1.2 From the date  hereof  through the end of the  Engagement  Term (as
hereinafter  defined),  you will, to the best of your ability,  devote your full
time and best efforts to the  performance  of your duties  hereunder  and to the
business and affairs of the Company  subject to your  involvement  in activities
permitted by Section 5 hereof.

         1.3 As a condition  of your  engagement  by the  Company,  you agree to
become a formal employee of Administaff Companies,  Inc. a professional employee
organization with whom the Company has contracted to provide contract  employees
and human  resources  services.  Administaff  Companies,  Inc. will be your sole
employer  and will  assign you to work at  TurboWorx  subject  the terms of this
agreement.  TurboWorx will be responsible for all  professional  aspects of your
service as President and CEO,  including  without  limitation  direction of your
activities  (including  adherence  to TurboWorx  policies  related to your job),
evaluation  of your  performance,  and  determination  of  compensation  levels.
Administaff  Companies,  Inc.  will be solely  responsible  for all other duties
normally  taken on by an  employer,  including  without

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limitation payment of salary,  provision of benefits  coverages,  and compliance
with standard employment policies and applicable Federal and state laws relating
to  employment  and  the  workplace.   Notwithstanding  your  relationship  with
Administaff  Companies,  Inc.,  all references to  "engagement"  or "service" or
similar  or related  terms  herein  shall  refer to your  relationship  with the
Company.

         2.  TERM AND TERMINATION.

         2.1 The term of your  engagement  with  the  Company  (the  "Engagement
Term") shall be one (1) year (the "Initial Term")  commencing on August 15, 2005
plus  any  extensions   thereof,   provided  that  the  Engagement   Term  shall
automatically  terminate  upon your death and may be  terminated  at any time as
provided in Section 2.2. At the close of the Initial Term, the  Engagement  Term
shall be  automatically  extended for a one (1) year period and thereafter shall
be  automatically  extended  at the  end of  each  one (1)  year  period  for an
additional one (1) year period unless earlier  terminated in accordance with the
terms  hereof,  and unless  either you or the Company  shall have given  written
notice to the other of a desire that such automatic  extension not occur,  which
notice  shall have been given no later than  thirty  days (30) days prior to the
end of the then  current  period.  If either  party gives such notice and absent
earlier  termination in accordance  with the terms hereof,  the last day of your
engagement shall be the last day of the Engagement Term.

         2.2 The  Company  shall  have  the  right,  on  written  notice  to you
specifying the applicable subsection below, to terminate your engagement:

             (a) immediately for Cause (as defined in Section 2.4), or

             (b) subject to Section  2.6  hereof,  in the event of your death or
             disability  which,  in  the  reasonable  opinion  of the  Board  of
             Directors,  renders  you  unable or  incompetent  to carry out your
             duties,   responsibilities,   and   assignments   with  or  without
             reasonable  accommodation  for a period of one  hundred  and twenty
             (120) consecutive days; or

             (c) subject to Section 2.6 hereof, immediately without Cause.

         2.3 You shall have the  right,  on written  notice to the  Company,  to
terminate  your  engagement  if you "resign for just cause,"  which shall mean a
resignation  of your  engagement as a direct result of (a) a material  breach by
the Company of its  obligations to you under this  Agreement,  provided that, if
such breach is capable of remedy,  a written  notice  within  sixty (60) days of
such breach and  opportunity  to cure such breach  shall be afforded the Company
and,  in such event,  just cause  shall exist if the Company  shall fail to cure
such breach  within a reasonable  period of time not to exceed  thirty (30) days
after receipt of such notice; or (b) a significant  modification by the Board of
Directors of your duties or authority  (except in connection  with a termination
pursuant to Section 2.2(a) or Section 2.2(b)). You shall also have the right, on
not less than thirty (30) days prior written notice to the Company, to terminate
your  engagement  without  just  cause;  provided  that such  termination  shall
constitute  a  forfeiture  of  any  severance  benefits  otherwise  due  to  you
hereunder.

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         2.4 The  term  "Cause"  shall  mean:  (a)  your  continued  failure  to
substantially  perform  your  duties  hereunder  (other  than any  such  failure
resulting from your  incapacity  due to physical or mental  illness) or any such
actual or anticipated  failure;  (b) your willful engagement in misconduct which
is materially  injurious to the Company's business or reputation,  monetarily or
otherwise;  (c) your violation of any material  provision of this Agreement;  or
(d) your conviction of an act of fraud,  embezzlement or another crime involving
moral  turpitude,  in any such case either (x)  involving the Company or (y) not
involving  the Company  but which,  in the opinion of a majority of the Board of
Directors  (other than you, if you are a Director),  is materially  injurious to
the  Company's  business  or  reputation.  You  shall not be deemed to have been
terminated  for Cause unless (1) prior written  notice has been delivered to you
setting  forth the reasons for the  Company's  intention to terminate for Cause,
and (2) a period of twenty (20) days has elapsed  since  delivery of such notice
during  which  you  were  afforded  an  opportunity  to cure  to the  reasonable
satisfaction  of a majority  of the Board of  Directors  (other  than  you),  if
capable of remedy,  the reasons for the  Company's  intention to  terminate  for
Cause.

         2.5 If you are  terminated  for Cause or your  engagement is terminated
due to death or  disability  pursuant to Section  2.2(b) or you resign for other
than just cause, neither the Company nor any affiliate of the Company shall have
any  further  obligation  to you or your  personal  representatives  under  this
Agreement,  except for salary and bonus earned  hereunder and unpaid at the date
of termination,  any other payments due under applicable law, and reimbursements
of permitted  business  expenses in accordance with Company policy. On or before
the date of termination of your engagement,  you shall return to the Company all
records  and other  personal  property  of the  Company  in your  possession  or
control, including all confidential,  proprietary or trade secret information of
the Company and its subsidiaries and affiliates.

         2.6 If the  Company  terminates  your  engagement  without  Cause under
Section  2.2(c) or you resign for just  cause  under  Section  2.3  hereof,  the
Company shall pay to you an amount equal to the aggregate  amount paid to you in
Base Salary (as  hereinafter  defined) during the three (3) months prior to such
termination, less applicable taxes and withholding (the "Severance Payment"), in
the manner and subject to the terms and conditions as hereinafter provided,  and
the Company shall arrange to provide to you during such period medical,  dental,
life and disability insurance benefits on the same basis as they would have been
provided  to you had your  engagement  not been  terminated  (collectively,  the
"Severance Benefits"). The Severance Payment shall be payable in installments on
such date or dates on which  Base  Salary  would  have been paid to you had your
engagement not been terminated.

         Notwithstanding  anything herein to the contrary,  the Company,  in its
sole  discretion,  may require that as a condition of eligibility for payment of
the Severance  Payment and Severance  Benefits as described in this Section 2.6,
you shall have  signed a release in the form  specified  by the Company and such
release shall be effective in accordance with its terms. Your failure or refusal
to sign such a release or the revocation by you of such a release, to the extent
permitted  by its terms,  shall  disqualify  you from  receiving  the  Severance
Payment and Severance  Benefits  hereunder,  and you shall instead  receive such
other  severance  benefits,  if any, as the Company shall  determine in its sole
discretion.  If you file a lawsuit,  charge,  complaint or other claim asserting
any claim or demand within the scope of any such release,  the Company,  whether
or not such claim is valid,  shall retain all rights and benefits of the release
and, in addition,  shall be

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entitled to cancel any and all future  obligations of the release and recoup the
value of all severance  payments and benefits paid hereunder,  together with the
Company's costs.

         2.7 In the event of the  termination of your  engagement by the Company
within one (1) year following a "change in control" of the Company (including if
you  "resign  for just cause" as defined in Section 2.3 during such one (1) year
period),  you will be entitled to any bonuses for the then  current  fiscal year
under any bonus plans then in effect as if fully earned.  Benefits payable under
this  Section  2.7 upon a change in control  may subject you to an excise tax as
"excess  parachute  payments" under Section 280G of the Internal Revenue Code of
1986, as amended.  The Company will reimburse you for all excise taxes paid, but
the  reimbursement  will  constitute  an excess  parachute  payment  and will be
subject to further  excise tax.  Such further  excise tax will  trigger  further
reimbursement  by the  Company.  For  purposes of this Section 2.7, a "change in
control" of the Company shall include (i) a sale of all or substantially  all of
the assets or  business  of the  Company;  (ii) a sale or other  transfer by the
shareholders  of the  Company  to a single  entity or  person  (or to a group of
entities  or  persons  acting  in  concert),  in  one  or a  series  of  related
transactions,  of more than fifty percent (50%) of the outstanding shares of the
capital  stock of the Company  entitled to vote for the  election of  directors,
(including  securities  convertible into such voting shares of the Company);  or
(iii) a merger or  consolidation of the Company into or with any other entity or
entities if, as a result  thereof,  more than fifty  percent (50%) of the voting
shares of the entity  surviving such merger or  consolidation is held by persons
or entities which are not shareholders of the Company  immediately prior to such
event.

         3.  COMPENSATION.

         3.1 BASE SALARY.  The Company  shall arrange for you to receive for the
services to be rendered  hereunder  a Base Salary  ("Base  Salary") at an annual
rate  of One  hundred  seventy-five  thousand  dollars  ($175,000),  subject  to
customary  withholding for federal,  state and local taxes as may be required by
Administaff  Companies,  Inc. Such Base Salary shall be payable  periodically in
conformity with the prevailing  practice of Administaff  Companies,  Inc. or the
Company as such  practice  shall be  established  or modified from time to time.
Such Base  Salary  shall be subject to  increase  from time to time to take into
account  appropriate  cost  of  living  adjustments  and  general   compensation
increases based on performance.

         3.2 BONUS.  The  Company  shall  also pay you an annual  bonus of up to
fifty thousand ($50,000) per year based on targets to be determined by the Board
of Directors. In its sole discretion, the Company may arrange for you to receive
other bonus or incentive compensation based on such factors as the Company deems
appropriate.

         3.3 EQUITY.  From time to time, and subject to approval of the Board of
Directors and to the terms of the Company's 2000 Stock Option Plan or such other
stock plan as may then be in effect,  the Company  will grant you stock  options
for shares of the Company's  common stock.  These grants shall be in addition to
any prior grants that you may have already received.

         (a) Your  initial  option  grant  shall be for that number of shares of
         common stock that,  when added to all prior option grants to you equals
         the result of multiplying 0.05 (the "Fraction")  times the total number
         of  shares  of  common  stock   required  to  support  all  issued  and
         outstanding  shares  of  stock  of the  Company  as of June  30,  2005,
         calculated on

                                     - 4 -
<PAGE>

         a Fully Diluted Basis. On August 31, 2005, and on the final day of each
         subsequent   month  during  your   engagement   under  this  Agreement,
         one-forty-eighth  (1/48)  of the  grant  (approximately  2.083%  of the
         options)  shall vest so that all  options in your  initial  grant shall
         have vested by July 31, 2009. (Should your engagement be terminated for
         any reason before all options have vested,  any unvested  options would
         be forfeited.)

         (b) As of March 31,  2006,  and as of the end of the first  quarter  of
         each subsequent  calendar year, the Company shall grant you options for
         a  number  of  shares  of  common  stock  that  equals  the  result  of
         multiplying  the  Fraction  times the total  number of shares of common
         stock required to support all issued and outstanding shares of stock of
         the Company as of the end of the prior calendar  year,  calculated on a
         Fully  Diluted  Basis,  reduced by the total number of options  already
         granted to you by the Company under this Agreement or other  engagement
         agreements or letters. The options granted under this Subsection 3.3(b)
         shall vest evenly  (1/48 of the options on the final day of each month)
         over the 48-month period following the date of the grant.  (Should your
         engagement be terminated for any reason before all options have vested,
         any unvested  options  would be  forfeited.)  The Company  shall not be
         obligated  to grant you options  under this  Subsection  3.3(b) if your
         engagement  has been  terminated  for any  reason  prior to the date of
         grant.

         (c) Notwithstanding the other terms of this Paragraph 3.3, in the event
         of the  termination  of your  engagement by the Company  within one (1)
         year  following  a "change  in  control"  of the  Company as defined in
         Section  2.7  (including  if you  "resign for just cause" as defined in
         Section 2.3 during such one (1) year period),  all granted but unvested
         options shall immediately  become fully vested,  and, in addition,  the
         Company  shall  grant you fully  vested  options for a number of shares
         that  equals the result of  multiplying  the  Fraction  times the total
         number of shares of common  stock  required  to support  all issued and
         outstanding  shares  of  stock  of  the  Company  as  of  the  date  of
         termination,  calculated on a Fully Diluted Basis, reduced by the total
         number  of  options  already  granted  to you  under  the terms of this
         Agreement or other engagement agreements or letters.

         3.4 BUSINESS  EXPENSES.  You shall be entitled to be reimbursed for all
reasonable  expenses  incurred in connection with the performance of your duties
hereunder  provided  that you shall,  as a condition  of  reimbursement,  submit
verification  of the nature and amount of such expenses in  accordance  with the
reimbursement policy from time to time adopted by the Company.

         4.  OTHER BENEFITS.

         4.1 VACATION.  You shall be entitled to vacation in accordance with the
vacation policy of the Company,  as the same may be in effect from time to time,
without loss of  compensation  or other benefits to which you are entitled under
this  Agreement,  to be  taken  at  such  times  as you may  reasonably  select.
Initially, you shall be entitled to fifteen (15) days of vacation per year.

         4.2 OTHER BENEFIT  PROGRAMS.  The Company will provide to you all other
benefits generally  available to those serving in equivalent  positions,  as the
same may be in effect from time to time.

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<PAGE>

         5.  OTHER ACTIVITIES DURING YOUR ENGAGEMENT WITH THE COMPANY.

         5.1 Except with the prior  written  consent of the  Company's  Board of
Directors, you will not during the term of this Agreement undertake or engage in
any other  employment  or  occupation  except as permitted by Section 5.3.  This
provision shall not be deemed to preclude your  co-employment  relationship with
Administaff   Companies,   Inc.  your  membership  in  professional   societies,
reasonable  service on the board or similar governing body of any not-for-profit
organization, lecturing or the acceptance of honorary positions, that are in any
case  incidental  to your  service  for the  Company,  which are not  adverse or
antagonistic  to  or  competitive  with  the  Company  or  its  subsidiaries  or
affiliates,  their  business  or  prospects,  financial  or  otherwise  and  are
consistent with your  obligations  regarding the  confidential,  proprietary and
trade secret  information  of the Company and its  subsidiaries  and  affiliates
pursuant to the Proprietary Information and Inventions Agreement between you and
the Company.

         5.2  Except  as  permitted  by  Section  5.3,  you will not  assume  or
participate  in,  directly  or  indirectly,  whether  as an  officer,  director,
stockholder,  partner, proprietor,  associate,  representative or otherwise, any
position or interest  adverse or antagonistic to the Company or its subsidiaries
or affiliates, their business or prospects,  financial or otherwise, or take any
action towards any of the foregoing.

         5.3 During the term of this Agreement,  except on behalf of the Company
or its  subsidiaries  or its affiliates,  you will not,  directly or indirectly,
whether as an officer, director,  stockholder,  partner, proprietor,  associate,
representative  or  otherwise,  become or be  interested  in any  other  person,
corporation,  firm,  partnership  or  other  entity  whatsoever  which  directly
competes with the Company or its subsidiaries or affiliates,  in any part of the
world,  in any line of business  engaged in (or planned to be engaged in) by the
Company  or  its   subsidiaries   or  affiliates  (or  any  successor  to  their
businesses).  With  respect to any company or  partnership  which does  directly
compete with the Company or its  subsidiaries  or  affiliates,  this Section 5.3
shall not prohibit you from owning (i) as a passive  investor only, an aggregate
of not more than one percent (1%) of the total stock or equity interests of such
company or partnership if the same are publicly traded,  or (ii) stock or equity
interests of such company or  partnership  through mutual funds or other similar
investment vehicles over which you retain no investment discretion.

         6.  POST-ENGAGEMENT ACTIVITIES.

         6.1 You understand and acknowledge  that the provisions of this Section
6 are necessary to protect the legitimate  business interests of the Company and
are fair and  reasonable  for numerous  reasons,  including  your receipt of the
specific consideration expressed in Section 3 of this Agreement. In addition, as
a result of your position  with the Company,  you have had, and will continue to
have,   access  to  significant   confidential,   proprietary  or  trade  secret
information of the Company, so that, if you were employed by a competitor of the
Company,  there  would be a  substantial  risk to the Company of your use of its
confidential,  proprietary or trade secret information.  Based on the foregoing,
for a period of twelve (12) months after the  termination of your  engagement by
the Company,  absent the Company's prior written  approval (with  concurrence by
the Board of Directors of the Company), you will not directly or indirectly:

                                     - 6 -
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                  (a) render any services to, or engage in any  activities  for,
         any other  person,  firm,  corporation  or business  organization  with
         respect to any product, process, technology or service, in existence or
         under  development  which  substantially  resembles or competes  with a
         product,  process,  or service of the  Company  in  existence  or under
         development   upon   which   you   worked  or   exercised   supervisory
         responsibility at any time during your engagement by the Company;

                  (b) solicit  any person  engaged by the Company to break their
         engagement with the Company or offer or cause to be offered  employment
         to any person who was engaged by the Company at any time during the six
         (6) months prior to the termination of your engagement by the Company;

                  (c)  entice,  induce or  encourage  any person  engaged by the
         Company to engage in any  activity  which,  were it done by you,  would
         violate any provision of this Section 6; or

                  (d)  otherwise  attempt  to  interfere  with  or  disrupt  the
         business  or  activities  of  the  Company  or  its   subsidiaries   or
         affiliates.

You agree  that if you act in  violation  of this  Section 6, the number of days
that you are in  violation  will be added to the time period  specified  in this
Section 6.

         6.2 Regardless of the foregoing, the provisions of this Section 6 shall
not apply to you (i) in the event that the Company breaches any material term or
provision  hereof and has not cured such breach  within 60 days after  receiving
written  notice of the breach,  (ii) the Company  terminates  you for any reason
(other  than  Cause),  or (iii) you "resign  for just  cause" (as  described  in
Section 2.3 hereof).

         7.  REMEDIES.  Your  duties  under  Section  6, if any,  shall  survive
termination of your  engagement by the Company.  You  acknowledge and agree that
any breach by you of any of the provisions of Section 6.1 of this Agreement will
result in irreparable and continuing  damage to the Company and that a remedy at
law for any breach or threatened  breach by you of the provisions of Section 6.1
would be inadequate,  and you therefore agree that the Company shall be entitled
to temporary,  preliminary and permanent  injunctive  relief in case of any such
breach or  threatened  breach.  The  prevailing  party in an action  under  this
Agreement  shall be  entitled  to  recover  its  costs and  expenses,  including
attorneys'  fees.  Nothing in this Agreement  shall be construed to prohibit the
Company from pursuing any other remedy available to it at law or in equity,  the
parties having agreed that all remedies are cumulative.

         8.  MISCELLANEOUS.

         8.1  ASSIGNMENT.  This Agreement and the rights and  obligations of the
parties  hereto  shall  bind  and  inure  to the  benefit  of any  successor  or
successors of the Company by  reorganization,  merger or  consolidation  and any
assignee of all or  substantially  all of its  business  and  properties  or the
business or  properties of the Company or any  subsidiary  or division  thereof,
but,  except as to any such  successor or assignee of the Company,  neither this
Agreement nor any rights or benefits hereunder may be assigned by the Company or
you.

                                     - 7 -
<PAGE>

         8.2 INTERPRETATION. In case any one or more of the provisions contained
in this  Agreement  shall,  for any reason,  be held to be  invalid,  illegal or
unenforceable in any respect,  such invalidity,  illegality or  unenforceability
shall not affect the other provisions of this Agreement. If moreover, any one or
more of the provisions  contained in this Agreement shall for any reason be held
to be excessively broad as to duration, geographical scope, activity or subject,
the parties  expressly agree that a court may rewrite and modify such provisions
so as to be enforceable to the fullest extent compatible with the applicable law
as it shall then appear.

         8.3 NOTICES. All notices,  consents,  waivers, and other communications
under this  Agreement  must be in  writing  and will be deemed to have been duly
given when (a) delivered by hand (with  written  confirmation  of receipt),  (b)
sent by facsimile (with written  confirmation of receipt),  provided that a copy
is mailed by registered mail, return receipt requested,  or (c) when received by
the addressee,  if sent by a nationally  recognized  overnight  delivery service
(receipt  requested),  in each case to the  appropriate  addresses and facsimile
numbers set forth below (or to such other  addresses and facsimile  numbers as a
party may designate by notice to the other parties):

         If to the Company:         TurboWorx, Inc.
                                    3 Enterprise Drive, Suite 401
                                    Shelton, CT 06484
                                    Attention:  CEO

         If to you:                 Srini Chari
                                    100 Woodcrest Drive
                                    Danbury, CT 06810

         8.4 WAIVERS. If either party shall waive any breach of any provision of
this  Agreement,  he or it shall  not  thereby  be  deemed  to have  waived  any
preceding  or  succeeding  breach  of the same or any  other  provision  of this
Agreement.

         8.5  HEADINGS.  The  headings of the  sections  hereof are inserted for
convenience  only and shall not be deemed to  constitute  a part  hereof  nor to
affect the meaning hereof.

         8.6 APPLICABLE  LAW. This Agreement  shall be governed by and construed
(both as to validity and  performance)  and enforced in accordance with the laws
of the State of  Connecticut  applicable to agreements  made and to be performed
wholly  within such  jurisdiction.  The  Company  and you hereby  agree that the
courts of the State of  Connecticut  located  in the County of New Haven and the
United States  District  Court for the District of  Connecticut  each shall have
personal  jurisdiction  and proper venue with respect to any dispute between the
Company and you.

         8.7 COMPLETE AGREEMENT;  AMENDMENTS;  PRIOR AGREEMENTS.  The foregoing,
together  with  the  Proprietary   Information  and  Inventions  Agreement  (the
"Inventions  Agreement") between you and the Company, is the entire agreement of
the parties  with respect to the subject  matter  hereof and may not be amended,
supplemented,  canceled or discharged except by written

                                     - 8 -
<PAGE>

instrument  executed by both parties hereto.  In the event of a conflict between
the provisions of this Agreement and the Inventions Agreement, the provisions of
this Agreement shall control.

         8.8 COUNTERPARTS.  This Agreement may be executed in counterparts, each
of which when so executed and delivered shall constitute a complete and original
instrument  but  all of  which  together  shall  constitute  one  and  the  same
agreement,  and it shall not be necessary when making proof of this Agreement or
any counterpart thereof to account for any other counterpart.

                            [SIGNATURE PAGE FOLLOWS]

                                     - 9 -
<PAGE>

         If you are in  agreement  with the  foregoing,  please so  indicate  by
signing and returning the enclosed copy of this letter.

                                                 TURBOWORX, INC.

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

ACCEPTED AND AGREED:

-----------------------------
         Srini Chari

                                     - 10 -

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