Document:

EMPLOYMENT,
      CONFIDENTIALITY, NON-COMPETITION, 

    NON-SOLICITATION
      AND INVENTIONS AGREEMENT

     

    This
      AGREEMENT (the “Agreement”)
      is
      made as of October 8, 2008 (the “Effective
      Date”),
      by
      and between Morlex, Inc., an Colorado corporation with its headquarters located
      at 420 Lexington Avenue, Suite 450, New York, New York 10155 (the “Company”)
      and
      Curtis Staker (the “Executive”).
      In
      consideration of the mutual covenants contained in this Agreement, the Employer
      and the Executive agree as follows:

     

    1.     Employment
      Capacity; Term.
      

     

    (a) The
      Company agrees to employ the Executive, and the Executive agrees to serve the
      Company, during the Term of Employment (as hereinafter defined), as Chief
      Executive Officer of the Company, with such duties consistent with such capacity
      as may be assigned to him by the Board of Directors of the Company (the
“Board”).
      The
      Executive shall perform all services to be rendered hereunder faithfully, devote
      his full business time and attention to the duties assigned to him by the Board
      and use his best efforts to promote the business interests of the Company.
      During the Executive’s employment with the Company, the Executive shall also
      serve as a member of the Board and in such additional capacities as may from
      time to time be designated by the Board, without additional compensation.

     

    (b) Employment
      of the Executive pursuant to the terms of this Agreement shall continue for
      two
      years from the date hereof, to be renewed annually for successive one-year
      terms
      thereafter, unless terminated by the Company or the Executive (the “Term
      of Employment”),
      subject to the terms and conditions hereinafter set forth. 

     

    2.     Compensation.
      The
      Company agrees to compensate the Executive for the services rendered by him
      during his employment as follows:

     

    (a) The
      Company shall (i) pay the Executive an annual salary of Three Hundred Fifty
      Thousand Dollars ($350,000) payable in accordance with the standard payroll
      practices of the Company (“Base”),
      which
      may be revised annually by the Board, (ii) pay the Executive an annual bonus
      equal to 50% of Base, conditioned upon the achievement of the annual EBITDA
      target as set by the Board from time to time (the “Annual
      Bonus”),
      (iii)
      pay the Executive a quarterly bonus of Ten Thousand Dollars ($10,000),
      conditioned upon the achievement of each quarterly EBITDA target as set by
      the
      Board from time to time (the “Quarterly
      Bonus”),
      (iv)
grant
      to
      the Executive options to purchase the common stock of the Company equal
      to
      5% of
      the issued and outstanding stock of the Company as of the date hereof at a
      price
      of $0.75
      per
      share, vesting as follows: one-third on the one-year anniversary of the date
      hereof and the remainder vesting equally quarterly over a two-year period
      thereafter (the “Options”),
      and
      (v) beginning in 2009, every year that this Agreement is in effect grant the
      Executive additional incentive options to purchase the common stock of the
      Company equal to 1% of the issued and outstanding stock of the Company at such
      time at the market price, such grants to be conditioned upon the achievement
      of
      the respective annual EBITDA targets as determined by the Board, or as otherwise
      approved by the Board from time to time (the “Incentive
      Options”,
      and
      collectively with the Base, Annual Bonus, Quarterly Bonus and Options, the
      “Compensation”).
      The
      Executive’s Compensation shall be reviewed annually on the anniversary of this
      Agreement. All options will be granted pursuant to the adoption of a Company
      Stock Option program, which will be adopted in the 2009 annual proxy statement,
      and will include typical vesting acceleration language as approved by the Board.
      The vesting of the Options and the Incentive Options will be accelerated upon
      a
“change of control” of the Company, to be defined in the Company Stock Option
      program, and the option grant agreement of the Executive will provide
      accordingly.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) The
      Executive shall be permitted to participate in all employee medical, retirement
      and insurance benefit plans applicable to similarly-situated executives of
      the
      Company, and such other plans as may from time to time be made available or
      applicable to the Executive, consistent with the policies of the
      Company.

     

    (c) The
      Executive shall be permitted to take four weeks of paid vacation annually.
      Accrued vacation not taken in any calendar year may not be carried forward
      or be
      usable in any subsequent calendar year. Paid holidays may be taken in accordance
      with the holiday policy and schedule of the Company as from time to time in
      effect.

     

    (d) The
      Company shall reimburse the Executive, consistent with the Company’s expense
      reimbursement policies and procedures as in effect from time to time and subject
      to receipt of appropriate documentation, for all reasonable and necessary
      out-of-pocket travel, business entertainment and other business expenses
      incurred or expended by him incident to the performance of his duties hereunder;
      provided,
      however,
      that, in
      order to qualify for reimbursement for any expense that exceeds
      $10,000 in
      the
      aggregate, Executive shall obtain the Company’s approval prior to the incurrence
      of such expense.

     

    3. Termination.

     

    (a) For
      Cause.
      The
      Company may terminate the Executive’s employment at any time for Cause (as
      defined below). For the purposes of this Agreement, “Cause”
shall
      mean the occurrence of one or more of the following: (i) habitual
      drunkenness or any substance abuse which adversely affects the Executive’s
      performance of his or her job responsibilities, (ii) commission of a
      felony, (iii) dishonesty relating to the Executive’s employment, (iv)
      personal misconduct by the Executive which could cause the Company to violate
      any state or federal law relating to sexual harassment, sex or other prohibited
      discrimination, or any intentional violation of any written policy of the
      Company or any successor entity adopted in respect to any such law,
      (v) conduct in the performance of the Executive’s employment which the
      Executive knows or should reasonably be expected to know (either as a result
      of
      a prior warning by the Company, custom within the industry or the flagrant
      nature of the conduct) violates applicable law or causes the Company to violate
      applicable law in any material respect, (vi) failure to follow the lawful
      instructions of the Company’s Board, provided compliance with such instructions
      was within the scope of the Executive’s duties, if such failure continues
      uncured for a period of fifteen (15) days after receipt by the Executive of
      written notice from the Company stating that continuation of such failure would
      constitute grounds for termination for Cause, (vii) gross
      incompetence, or (viii)
      violation of any confidentiality or non-competition provision at any time
      applicable to the Executive, or any other material provision of this Agreement.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Upon
      Death or Disability.
      This
      Agreement shall automatically terminate upon the death of the Executive and
      may
      be terminated by the Company upon the Disability of the Executive. For purposes
      of this Section 3, the Executive shall be deemed disabled (and termination
      of
      his employment shall be deemed to be due to such “Disability”)
      if an
      independent medical doctor (selected by the Company’s applicable health or
      disability insurer) certifies that the Executive has, for a cumulative period
      of
      more than one hundred twenty (120) days during any 365-day period, been disabled
      in a manner which seriously interferes with his or her ability to perform the
      essential functions of his or her job even with a reasonable accommodation
      to
      the extent required by law. Any refusal by the Executive to submit to a medical
      examination for the purpose of certifying Disability shall be deemed
      conclusively to constitute evidence of the Executive’s Disability.

     

    (c) For
      Convenience of the Company.
      Notwithstanding any other provisions of this Agreement, the Company shall have
      the right to terminate the Executive’s employment at the “Company’s
      Convenience”
(i.e.,
      for any reason other than Cause, death or Disability) upon ninety (90) days’
notice. 

     

    (d)  Resignation;
      Good Reason.
      Notwithstanding any other provisions of this Agreement, the Executive shall
      have
      the right to resign at any time upon ninety (90) days’ written notice to the
      Company (whether or not for Good Reason). For purposes hereof, resignation
      by
      the Executive based on either of the following shall constitute resignation
      for
“Good
      Reason”:
      (i) a
      transfer of the Company’s offices, or a transfer of the Executive (other than on
      a temporary basis), to a location which would increase the Executive’s commute
      (by the most direct route) from his permanent residence by more than fifty
      (50)
      miles in each direction, in either case without Executive’s consent, provided
      such resignation occurs within thirty (30) days following the date of transfer,
      or (ii) a material breach by the Company of this Agreement, which breach
      continues uncured for a period of forty-five (45) days after receipt by the
      Company of written notice thereof from the Executive specifying the breach,
      provided such resignation occurs within ten days following the expiration of
      the
      45-day cure period.

     

    (e) Effect
      of Termination on Compensation.

     

    i) Termination
      for Cause; Resignation.
      In the
      event Executive’s employment with the Company is terminated by the Company for
      Cause or the Executive resigns (for reasons other than for Good Reason), the
      Company shall have no further liability to Executive hereunder, whether for
      Compensation, benefits, incentive compensation or otherwise, other than for
      Base, benefits and any unused vacation accrued through the date of termination,
      as well as reimbursement of expenses properly incurred through the date of
      termination. In such events, the Executive may elect to continue, at his own
      expense, medical insurance coverage to the extent mandated under the
      Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).

     

    ii)  Death
      or Disability.
      In the
      event the Executive’s employment with the Company terminates as a result of the
      death of the Executive or is terminated by the Company as a result of the
      Disability of the Executive, the Executive shall be entitled to receive his
      Base
      and benefits described in Sections 2(a) and 2(c) accrued and expenses properly
      incurred through the date of termination and any accrued incentive compensation
      which has been earned but remains unpaid from the year prior to the year of
      termination, as well as applicable health, disability or death benefits, if
      any,
      offered by the Company at the time consistent with the policies of the Company,
      provided that Executive meets the eligibility requirements of such
      benefits.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    iii)  Company’s
      Convenience; Resignation for Good Reason.
      In the
      event the Executive’s employment with the Company is terminated by the Company
      at the Company’s Convenience, or by the Executive for Good Reason, the Executive
      shall be entitled to continue to receive the Base described in Section 2(a)
      payable monthly in arrears, and, to the extent permitted by the terms of the
      applicable group insurance policies, the benefits described in Section 2(b)
      all
      at the times and in the manner provided in such sections (and at the levels
      in
      effect at the date of termination), or compensation and benefits that, in the
      aggregate, are comparable to those described in Sections 2(a) and 2(b), for
      the
      Severance Period (as defined below). To the extent the Executive is not eligible
      for continued participation in the Company’s group medical insurance program,
      the Company shall reimburse the Executive, on an after-tax basis, for a portion
      of his COBRA premiums during the Severance Period equal to the excess of what
      he
      would have paid as an employee and the amount payable under COBRA. As used
      herein, the term “Severance
      Period”
shall
      mean the period beginning on the date of termination of Executive’s employment
      with the Company and expiring (A) six (6) months following the date of
      termination so long as the Executive has been employed with the Company for
      more
      than six (6) months but less than eighteen (18) months prior to his termination;
      (B) twelve (12) months following the date of termination so long as the
      Executive has been employed with the company for more than eighteen (18) months
      but less than thirty (30) months prior to his termination; or (C) eighteen
      (18)
      months following the date of termination so long as the Executive has been
      employed with the company for at least thirty (30) months prior to his
      termination. The Executive shall not receive any severance benefits unless
      he
      has been employed with the Company for at least six (6) months. In no event
      shall Executive receive severance benefits for a period longer than the
      Severance Period set forth in Section 3(e)(iii)(C) herein.

     

    As
      a
      condition to receiving the severance benefits described in this Section
      3(e)(iii), the Executive shall be required to execute and deliver to the Company
      the written confirmation described in Section 4(b)(ii) and a general release
      of
      all claims (including without limitation all claims for breach of contract,
      for
      employment discrimination under Title VII of the Civil Rights Act of 1964,
      as
      amended, and claims under the Americans with Disabilities Act of 1990, the
      Equal
      Pay Act of 1963, the Age Discrimination in Employment Act of 1967, the Older
      Workers Benefit Protection Act of 1990, the Civil Rights Act of 1866, the Family
      and Medical Leave Act of 1993, the Civil Rights Act of 1991, the Employee
      Retirement Income Security Act of 1974 and any equivalent state, local and
      municipal laws, rules and regulations) he may have against the Company, its
      Affiliates (as defined below), and the officers, directors, shareholders (and
      related entities) and agents of the Company and its Affiliates, in each case
      in
      such form as may be reasonably requested by the Company. Upon the occurrence
      of
      any material breach of this Agreement (it being understood that, without
      limitation, any breach of Sections 4, 5 or 6 shall be deemed material), the
      Company shall have no further liability to pay severance benefits hereunder
      and
      may, in addition to exercising any other remedies it may have hereunder or
      under
      law, immediately discontinue payment of remaining unpaid severance benefits.
      As
      used in this Agreement, an “Affiliate”
of
      the
      Company shall mean any corporation, partnership, limited liability company
      or
      other entity which, directly or indirectly, controls, is under common control
      with or is controlled by the Company at any time. For the purposes of this
      definition, “control,” as used with respect to any entity, shall mean the
      possession, directly or indirectly, of the power to direct or cause the
      direction of the management and policies of a person or entity, whether through
      the ownership of voting securities or voting interests, by contract or
      otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4. Confidentiality.
      

     

    (f) The
      Executive recognizes and acknowledges that certain information possessed by
      the
      Company and its Affiliates constitutes valuable, special, and unique proprietary
      information and trade secrets. Accordingly, the Executive agrees that he or
      she
      shall not, during the term of his or her employment with the Company or at
      any
      time thereafter, divulge, use, furnish, disclose or make available to any
      person, whether or not a competitor of the Company, any confidential or
      proprietary information concerning the assets, business, or affairs of the
      Company, of any of its Affiliates, or of its suppliers, customers, licensees
      or
      licensors including, without limitation, financial information concerning the
      Company or its Affiliates, information regarding trade secrets and information
      (whether or not constituting trade secrets) concerning sources of supply, costs,
      pricing practices, telemarketing sales techniques, sales training techniques,
      formulas, business plans, marketing plans, strategies, forecasts, unpublished
      financial data, budgets, projections, customer and supplier identifiers,
      peculiar likes and fancies, customer characteristics (product preferences,
      contact person, pricing, when to make sales call, purchase patterns, etc.),
      agreements, inventions, improvements, research or development, test results,
      product specifications, know-how, manufacturing and technical processes, product
      designs, source codes and production applications, or any other confidential
      information which gives the Company or its Affiliates an opportunity to claim
      a
      competitive advantage or has economic value (collectively, “Confidential
      Information”).
      The
      foregoing shall not be applicable to any information which is required to be
      disclosed by law, provided that the Executive provides prompt notice to the
      Company of such disclosure request and assists the Company in preventing such
      disclosure. 

     

    (g) Upon
      the
      resignation or termination of the Executive's employment, for any reason,
      whether voluntary or involuntary and whether by the Company or the Executive,
      or
      at any time the Company may request, the Executive shall (i) surrender to
      the Company all documents and data of any kind (including data in
      machine-readable form) or any reproductions (in whole or in part) of any items
      relating to the Confidential Information and shall not make or retain any copy
      or extract of any of the foregoing, and (ii) will confirm in writing that to
      his
      or her knowledge, after inquiry, no Confidential Information exists on any
      computers, computer storage devices or other electronic media that were at
      any
      time within the Executive’s control (other than those which remain at, or have
      been returned to, the Company). 

     

    5. Non-Competition,
      Non-Solicitation and Non-Association.

     

    (h) In
      consideration of this Agreement and all the recitals and provisions contained
      herein, and in view of the Executive’s participation in and access to the unique
      and valuable information of the current and proposed business activities of
      the
      Company and its Affiliates in all aspects, the Executive covenants and agrees
      that, during the Term of Employment and thereafter during the Restrictive Period
      (as defined below), the Executive shall not, directly or indirectly:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    i) except
      in
      the ordinary course performance of his duties as an employee of the Company,
      induce or attempt to induce or encourage others to induce or attempt to induce,
      any person who is an employee of, consultant to or agent of the Company or
      any
      Affiliate of the Company as of the date of termination of Executive’s
      employment, to (x) terminate such person’s employment with such employer (in the
      case of an employee) or cease providing its services to the Company or its
      Affiliates (in the case of a consultant or sales or other commercial
      representative), provided
      that
      nothing herein shall prevent general solicitations through advertising or
      similar means which are not specifically directed at employees of, consultants
      to or agents of the Company or its Affiliates; or (y) engage in any of the
      activities hereby prohibited with respect to the Executive under subparagraphs
      (ii) and (iii) below;

     

    ii) in
      any
      Competitive Area (as defined below), directly or indirectly engage in, or make
      any financial investment in any Person (other than the Company) which engages
      in, the design, development, production, marketing or sales of products and
      services related to the internet-focused data and direct marketing business
      (including, without limitation, internet sales and advertising, lead generation,
      and publication of online financial newsletters); provided
      that
      this
      Section 5(a)(ii) shall not prohibit Executive from acquiring, solely as an
      investment, marketable securities of a publicly traded entity constituting
      less
      than two percent (2%) of the capital stock of such entity. For purposes of
      this
      Section 5(a)(ii), “Competitive
      Area”
shall
      mean the States and Territories of the United States and Canada.

     

    iii) divert,
      solicit or attempt to divert, or assist or encourage any person in diverting,
      soliciting or attempting to divert, to or for any competitor of the Company
      or
      any of its Affiliates, any customer, vendor or supplier of the Company or any
      Affiliate of the Company.

     

    (i) As
      used
      in this Section 5, “Restrictive
      Period”
shall
      mean six (6) months from the date of the termination of Executive’s employment
      with the Company for any reason.

     

    6. Rights
      in Company Property; Inventions.
      

     

    (j) The
      Executive hereby recognizes the Company’s proprietary rights in the tangible and
      intangible property of the Company and its Affiliates and acknowledges that
      notwithstanding the relationship of employment, the Executive has not obtained
      or acquired and will not hereafter obtain or acquire through such employment
      any
      personal property rights in any of the property of the Company and its
      Affiliates, including but not limited to, any writing, communications, manuals,
      documents, instruments, contracts, agreements, files, literature, data,
      technical information, know-how, secrets, formulas, products, methods,
      procedures, processes, devices, apparatuses, trademarks, trade names, trade
      styles, service marks, logos, copyrights, works of authorship, patents, or
      other
      matters which are the property of the Company and its Affiliates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (k) The
      Executive agrees that any and all discoveries, inventions, works of authorship
      improvements and innovations (including all data and records pertaining
      thereto), whether or not patentable, or copyrightable, or reduced to writing
      (collectively, “Inventions”),
      which
      during his or her employment by the Company, the Executive conceived or made,
      or
      conceives or makes, either alone or in conjunction with others, which are
      related to the business of the Company and its Affiliates, are and shall be
      the
      sole and exclusive property of the Company and its Affiliates, except for those
      inventions and discoveries conceived by the Executive prior to commencement
      of
      his or her employment with the Company or its predecessor which are disclosed
      on
Schedule
      A
      of this
      Agreement. The Executive shall promptly disclose all Inventions to the Company
      conceived during the period of his or her employment. At the request of the
      Company and at anytime during or after the Executive’s employment with the
      Company, the Executive shall execute any assignments or other documents the
      Company and its Affiliates may deem necessary to protect or perfect its rights
      in the Inventions, and shall assist the Company, at the Company’s expense, in
      obtaining, defending and enforcing the Company’s and its Affiliates’ rights
      therein. The Executive hereby appoints the Company as his or her
      attorney-in-fact to execute on his or her behalf any assignments or other
      documents deemed necessary by the Company to protect or perfect its rights
      to
      any Inventions.

     

    7. Enforcement;
      Modification.
      

     

    (l) The
      Executive further acknowledges and agrees that any breach or threatened breach
      by the Executive of any provision of Section 4, 5 or 6 due to his unique
      services provided to the Company as further detailed above will result in
      irreparable injury to the Company (or its Affiliates), that monetary damages
      will be an inadequate remedy for such breach and that, accordingly, in addition
      to any other remedy that the Company may have, the Company shall be entitled
      to
      injunctive relief in the event of any breach hereof without posting bond or
      other security. In the event the Company brings an action to obtain such relief,
      the prevailing party in such action shall be entitled to recover its attorney’s
      fees and other expenses incurred in said action, and the court in which said
      action is brought shall award such expenses to the prevailing party as part
      of
      the costs of such action. 

     

    (m) It
      is
      expressly agreed that if any restrictions set forth in Section 4, 5 or 6 are
      found by any Court having jurisdiction to be unreasonable because they are
      too
      broad in any respect, then and in each such case, the remaining restrictions
      herein contained shall nevertheless remain effective, and this Agreement, or
      any
      portion thereof, shall be considered to be amended so as to be considered
      reasonable and enforceable by such Court, and the Court shall specifically
      have
      the right to restrict the business, geographical or temporal scope of such
      restrictions to any portion of the business or geographic areas or time period
      described above to the extent the Court deems such restriction to be necessary
      to cause the covenants to be enforceable, and in such event, the covenants
      shall
      be enforced to the extent so permitted.

     

    8. General.

     

    (n) Notices.
      All
      notices and other communications hereunder shall be in writing or by written
      telecommunication, and shall be deemed to have been duly given if delivered
      personally or if mailed by certified or registered mail, or if sent by confirmed
      written telecommunication, to the relevant address set forth below, or to such
      other address as the recipient of such notice or communication shall have
      specified to the other party hereto in accordance with this Section
      8(a):

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      to the
      Company, to:

     

    Morlex,
      Inc.

    420
      Lexington Avenue, Suite 450

    New
      York,
      New York 10155

    Attention:
      Richard Berman, Chairman

    Facsimile:
      (212) 581-5198

    

    with
      a
      copy to:

    Butzel
      Long

    380
      Madison Avenue - 22nd
      Floor

    New
      York,
      New York 10017

    Attention:
      Jane Greyf, Esq. 

    Telephone:
      (212) 323-8601

    Facsimile:
      (212) 818-0494

     

    If
      to the
      Executive:

     

    At
      the
      address shown below his signature below. 

     

    (o) Successors
      and Assigns.
      This
      Agreement shall be binding upon the Executive and inure to the benefit of the
      Company and its successors and assigns, including without limitation any
      corporation to which substantially all of the assets or the business of the
      Company are sold or transferred.

     

    (p) Severability.
      If any
      provision of this Agreement is or becomes invalid, illegal or unenforceable
      in
      any respect under any law, the validity, legality and enforceability of the
      remaining provisions hereof shall not in any way be affected or
      impaired.

     

    (q) Waivers.
      No
      delay or omission by either party hereto in exercising any right, power or
      privilege hereunder shall impair such right, power or privilege, nor shall
      any
      single or partial exercise of any such right, power or privilege preclude any
      further exercise thereof or the exercise of any other right, power or
      privilege.

     

    (r) Counterparts.
      This
      Agreement may be executed in multiple counterparts, each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. A facsimile or telecopied signature shall be deemed an original
      for
      all purposes.

     

    (s) Governing
      Law. 
      This
      Agreement and the performance hereof shall be construed and governed in
      accordance with the laws of the State of California.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (t) Waiver
      of Jury Trial.
      THE
      PARTIES TO THIS AGREEMENT FURTHER AGREE THAT TO THE FULLEST EXTENT ALLOWED
      BY
      LAW, EACH PARTY EXPRESSLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL
      BY A
      JURY IN CONNECTION WITH ANY CONTROVERSY, CLAIM OR DISPUTE (A “CONTROVERSY”)
      BETWEEN THE PARTIES ARISING FROM OR RELATING TO THIS AGREEMENT OR ANY ACTUAL
      OR
      ALLEGED BREACH THEREOF. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS
      VOLUNTARILY MADE BY IT AND THAT IT IS INFORMED AS TO AND UNDERSTANDS THE
      CONSEQUENCES THEREOF AND THAT EACH PARTY EXPECTS, IN THE EVENT OF SUCH
      CONTROVERSY, THAT THE OTHER PARTY WILL SEEK TO ENFORCE THIS WAIVER.

     

    (u) Consent
      to Jurisdiction.
      Each of
      the Company and the Executive agrees to submit to the non-exclusive jurisdiction
      of the courts in and of the State of New York, and consents that service of
      process with respect to any action or proceeding relating to this Agreement
      may
      be made by registered mail to it at its address set forth herein.

     

    (v) Entire
      Agreement.
      This
      Agreement contains the entire agreement between the parties concerning the
      subject matter hereof and supercedes any prior employment, severance,
      confidentiality or invention assignment agreement between the parties hereto,
      provided
      however,
      that
      the Company reserves and shall retain all rights and remedies it may have
      against the Executive with respect to any breach of any prior confidentiality
      and invention assignment agreements. 

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement to be effective
      as of the date first above written.

     

     

    
      	 	
              MORLEX,
                INC.

            	 
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Richard J. Berman

            	 
	 	
               

            	
              Name:
                Richard J. Berman

            	 
	 	
               

            	
              Title:
                Chairman and Chief 

                       
                Executive Officer

            	 
	 	 	 	 
	 	 	 	 
	 	
              /s/
                Curtis Staker

            	 
	 	
              Curtis
                Staker

            	 
	 	 	 
	 	 	 
	 	Address:
	   
	 
	 	 	      
	 
	 	 	      
	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      A

    

    Inventions
      Conceived By Executive

    Prior
      to Employment with the Company

     

    The
      following inventions are excluded from the provisions of Section 6 of the
      Agreement:

     

    [●].Unassociated Document

    GSV,
      INC.

    191
      Post Road

    Westport,
      Connecticut 06880

    

    

                        October
      17,
      2008

    

    Brooks
      Station Holdings, Inc.

    c/o
      Cavallo Capital Corp.

    660
      Madison Avenue

    New
      York,
      New York 10021

    

    
      	 	
              Re:

            	
              Waiver
                of Default and Amendment of Promissory Note and Security
                Agreement

            

    

    

    Dear
      Sirs:

    

    Brooks
      Station Holdings, Inc. (“Brooks Station”) holds an Amended and Restated
      Promissory Note issued by GSV, Inc. (the “Company”) dated March 11, 2008, as
      amended, in the principal amount of $160,000 (the “Note”). The Note bears
      interest at the rate of 8% per annum and is secured by a first priority security
      interest in all assets of the Company pursuant to a Security Agreement between
      the Company and Brooks Station dated as of July 21, 2003. By agreement dated
      March 11, 2008, the Note was amended to extend its maturity date to September
      1,
      2008 (the “Old Maturity Date”).

    

    Contemporaneously
      with the execution of this letter agreement, the Company is paying Brooks
      Station $10,000.00, all of which is to be applied against the principal balance
      of the Note. Brooks Station hereby acknowledges receipt of such payment. As
      of
      September 1, 2008, there was $28,933.33
      of
      accrued and unpaid interest on the Note.

    

    Brooks
      Station and the Company now wish to amend and restate the Note to (i) reduce
      the
      principal amount of the Note to one hundred fifty thousand dollars ($150,000)
      and (ii) extend the maturity date of the Note to March 1, 2009, all as set
      forth
      in the form of the Second Amended and Restated Promissory Note in the form
      of
Exhibit
      A
      hereto
      (the “New Note”).

    

    Now
      therefore, the parties hereto hereby agree that:

    

    1. Amendment
      of Promissory Note.
      The
      Note is hereby amended and restated as set forth in the New Note, which New
      Note
      shall in all respects replace and supersede the existing terms and conditions
      of
      the Note and shall be executed and delivered by the Company to Brooks Station
      contemporaneously with this letter agreement.

    

    2. Waiver
      of Default.
      Brooks
      Station hereby waives any claim against the Company or its assets arising from
      the Company’s failure to pay the principal and accrued interest on the Note on
      the Old Maturity Date or thereafter through the date of this letter agreement.
      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Brooks
      Station Holdings, Inc.

    October
      17, 2008

    Page
      2

    

    

    3. Amendment
      of Security Agreement.
      Brooks
      Station and the Company hereby agree that each reference to the Promissory
      Note
      (the “Original Note”) in the Security Agreement between Brooks Station and the
      Company dated as of July 21, 2003 (the “Security Agreement”) shall be deemed to
      be a reference to the New Note, as defined in this letter agreement, and that
      the first priority security interest of Brooks Station in the assets of the
      Company created by the Security Agreement shall be uninterrupted by the
      substitution of the Note for the Original Note and the New Note for the
      Note.

    

    4. Miscellaneous.

    

    (i) Except
      as
      herein amended, the Note and the Security Agreement shall each remain in full
      force and effect. This letter agreement may not be amended, revised, terminated
      or waived except by an instrument in writing signed and delivered by the party
      to be charged therewith.

    

    (ii) This
      letter agreement shall be binding upon and inure to the benefit of the
      successors and assigns of the respective parties hereto.

    

    (iii) This
      letter agreement shall be construed and governed by the laws of the State of
      New
      York, applicable to agreements made and to be performed entirely
      therein.

    

    If
      you
      are in agreement with the foregoing, please sign below and return the original
      to the Company, keeping a copy for your files.

    

    
      	 	
              Sincerely,

            
	 	 	 
	 	 	 
	 	
              GSV,
                INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	/s/
              Gilad Gat
	 	 	
              Name:
                Gilad Gat

            
	 	 	
              Title:  
                Chief Executive Officer and
                President

            

    

     

    Acknowledged
      and agreed:

    

    BROOKS
      STATION HOLDINGS, INC.

    

    

    
      	
              By:

            	
              /s/
                Idan
                Moskovich                           
                

            

    

    
      	 	
              Name:
                Idan Moskovich

            

    

    
      	 	
              Title:  
                President

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    SECOND
      AMENDED AND RESTATED

    PROMISSORY
      NOTE

     

    (See
      Exhibit 10.2)

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