Document:

Exhibit
10.1

TERMINATION AGREEMENT

THIS TERMINATION
AGREEMENT (the “Agreement”)
is dated as of August 1, 2006 and is made by and between TASKER PRODUCTS CORP.,
f/k/a TASKER CAPITAL CORP., a Nevada corporation (the “Company”),
and JAMES BURNS (“Employee”).

WHEREAS, pursuant to that
certain Executive Employment Agreement between the Employee and the Company
dated as of January 1, 2005 (the “Employment Agreement”),
the Company is terminating Employee’s employment relationship with the Company
for cause, and to settle and resolve all issues arising from or related to such
relationship and the termination thereof.

NOW THEREFORE, in
consideration of the mutual promises made herein, the Company and Employee
(collectively referred to as the “Parties”)
hereby agree as follows:

1.             Termination.  The Company hereby terminates the Employee’s
employment with the Company as Vice President of Business Development and the
Employee hereby resigns and withdraws from all other positions (as an employee,
officer, director or board committee member or otherwise) of the Company and of
any subsidiary or affiliate of the Company (together with the Company the “Company Entities”), effective as of the open of business on
July 11, 2006 (the “Effective Date”).  The Employee agrees that he has received all
compensation owed to him in respect thereof (including under the Employment
Agreement), except for payment of his base salary through the date hereof, and
that upon receipt of such payment he has no continuing right to receive any
benefits, including severance or a year-end bonus, from any of the Company
Entities following or in respect of such termination, except as specifically
provided for herein.

2.             Severance. In consideration
of Employee’s termination, the Company hereby agrees to pay to the Employee,
and as severance compensation, the monetary equivalent of forty-seven vacation
days (the “Severance Compensation”), for the
remainder of the month of July 2006 only (the “Severance
Period”). The Severance Compensation shall be paid in accordance
with the Company’s normal payroll practices. 
The Employee shall also be entitled to retain his stock options which
have vested as of July 11, 2006. 
Vacation paid starting August 1, 2006.

3.             Benefits. The Employee will
have the right to medical insurance under the Company’s plan until August 31,
2006.  After that date, the Employee will
have the right to elect continuation of medical benefits under and subject to
the provisions of COBRA.  The Employee
will be responsible for the payment when due of all COBRA premiums.  The Employee shall not be entitled to receive
any other benefits of the Company from and after the Effective Date.

4.             Return of Company Property.  Employee represents and warrants that he will
return to the Company or, at the Company’s option, confirm that he has
destroyed, in each case, no later than July 14, 2006, all property of the
Company, including all equipment, all corporate credit cards issued in Employee’s
or the Company’s name, all keys to offices of the Company and all memoranda,
records and other documents, papers or electronic media relating to the Company
(including without limitation all account information such as contact names,
addresses, numbers and other information regarding customers and potential
customers), and all copies thereof including such items stored in computer
memories, prepared by or made available to

 

 

Employee during employment with the Company.  Notwithstanding the previous sentence, the
Employee is entitled to retain his laptop computer, his cell phone, and his
blackberry, provided that he temporarily gives the Company the opportunity and
access to erase all materials on the laptop computer and on the
blackberry.  The Employee also represents
and warrants that he will return to the Company that certain leased car that he
uses that is in the Company’s name, no later than August 31, 2006.

5.             Covenants. 

a.             Confidentiality;
Non-Compete. Simultaneously with the execution of this Agreement, Employee
shall execute and deliver to the Company the Confidentiality, Non-Competition
and Non-Solicitation Agreement which is attached as Exhibit A hereto
(the “Non-Compete Agreement”). In addition,
Employee and the Company each agree to keep the content of the terms of this
Agreement completely confidential, except that Employee may discuss the
Agreement with family members and professional advisors (provided they agree to
maintain confidentiality), and except that the Company may discuss this
Agreement with its employees, officers, directors and professional advisors who
have a reasonable need to know and may make such additional disclosures as may
be necessary to implement this Agreement or as may be required by law.

b.             Release and
Non-Disparagement.  Simultaneously
with the execution of this Agreement, Employee and the Company shall execute
and deliver to the other Party the Release Agreement which is attached as Exhibit
B hereto (the “Release”).

6.             Representations.

a.             Authority,
Reliance, Liens. Employee represents and warrants that (i) Employee has the
capacity to act on Employee’s own behalf and on behalf of all who might claim
through Employee to bind them to the terms and conditions of the Termination
Documents (defined below), (ii) Employee has not relied upon any
representations or statements made by the Company which are not specifically
set forth in this Agreement, and (iii) there are no liens or claims of lien or
assignments in law or equity or otherwise of or against any of the claims or
causes of action released pursuant hereto.

b.             Voluntary
Execution. This Agreement and the other Termination Documents are executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims.  The Parties acknowledge that: (i) they have
read each Termination Document, (ii) they have been represented in the
preparation, negotiation, and execution of each Termination Document by legal
counsel of their own choice or that they have voluntarily declined to seek such
counsel,  (iii) they understand the terms
and consequences of each Termination Document and of the releases therein
contained, and (iv) they are fully aware of the legal and binding effect of
each Termination Document.

c.             Counsel.
Employee acknowledges that the Company has specifically advised Employee to
seek counsel regarding the legal, tax and other consequences of the matters
provided in this Agreement and the other Termination Documents.  In the event that Employee

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elects not to consult with an attorney or other
counsel regarding Employee’s rights and obligations under the Termination
Documents and the legal effect hereof, Employee hereby waives all rights to
such consultation.  Such waiver is and
shall be irrevocable and unequivocal, without any conditions or reservations of
any kind.

7.             Severability. The parties
understand and agree that in the event any provision of  any Termination Document is deemed to be
invalid or unenforceable by any court or administrative agency of competent
jurisdiction, the respective Termination Document shall be deemed to be
restricted in scope or otherwise modified to the extent necessary to render the
same valid and enforceable or, in the event that any provision of any
Termination Document cannot be modified or restricted so as to be valid and
enforceable, then the same shall be deemed excised from the respective
Termination Document if circumstances so require, and the respective
Termination Document shall be construed and enforced as is such provision had
originally been incorporated therein as so restricted or modified, or as if
such provision had not originally been contained therein, as the case may be.

8.             Entire Agreement; Amendment.
This Agreement, together with the Non-Compete Agreement and the Release (the “Termination Documents”) represent the entire agreement and
understanding between the Company and Employee concerning the Employee’s
employment with the Company and the separation of the Employee from the
Company, and supersedes and replaces any and all prior agreements and
understandings concerning Employee’s relationship with the Company and Employee’s
compensation by the Company, including without limitation the Employment
Agreement, and any prior employment agreement previously entered into by the
Company and the Employee.  This Agreement
may only be amended by a written instrument signed by Employee and a duly
authorized officer of the Company.

9.             Specific Enforcement.  Employee acknowledges and agrees that the
Company will suffer irreparable harm as a consequence of any breach or
threatened breach by Employee of any of the provisions of any Termination
Document and Employee hereby consents to the Company seeking and being awarded
such injunctive and other equitable relief as a court may deem appropriate in
the circumstances to prevent or restrain any such breach or threatened breach.
In addition, Employee breaches any term of a Termination Document, the Company
may commence legal action and pursue any available legal and equitable
remedies, including but not limited to suspending and recovering any and all
payments and benefits made or to be made under this Agreement, together with
reimbursement of any reasonable legal fees or expenses incurred by them in
connection therewith.  If Company seeks
and/or obtains relief from an alleged breach of a Termination Document, all of
the provisions of this Agreement shall remain in full force and effect.

10.           Governing Law. This Agreement
and each other Separation Document shall in all respects be interpreted and
governed by the laws of the State of Connecticut (without regard to Connecticut’s
conflicts laws) and the Parties in any action arising out of this Agreement
shall be subject to the jurisdiction and venue of the federal and state courts,
as applicable, of the State of Connecticut, Fairfield County. Employee agrees
that service of process upon Employee in any such action or proceeding may be
made by delivery thereof by first-class mail, postage prepaid, to Employee, at
his last known address on the books and records of the Company.

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11.           Costs. The Parties shall each
bear their own costs, expert fees, attorneys’ fees and other fees incurred in
connection with this Agreement.

12.           Successors. This Agreement
shall extend and inure to the benefit of, and shall be binding upon, Employee,
the Company, and each of their respective successors and assigns.

13.           Further Assurances. At the
request of any Party, the other Party shall execute and deliver such further
documents, and take such other action, as may be necessary or appropriate to
give full effect to the transactions contemplated by this Agreement.

14.           Counterparts  This Agreement may be executed in one or more
counterparts, and each counterpart shall have the same force and effect as an
original and shall constitute an effective, binding agreement on the part of
each of the undersigned.

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

	
  

  	
   

  	
  /s/ James Burns

  
	
   

  	
   

  	
  JAMES BURNS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  STATE OF

  	
  }

  	
   

  
	
  COUNTY OF

  	
  }ss:

  	
   

  

 

On the 1 day of
August in the year 2006 before me, the undersigned, personally appeared Timothy
O’Brien, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same, and that by his signature on
the instrument, the individual executed the instrument.

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  TASKER PRODUCTS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard D.
  Falcone

  
	
   

  	
   

  	
   

  	
  Name: Richard D. Falcone

  
	
   

  	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STATE OF

  	
  }

  	
   

  	
   

  
	
  COUNTY OF

  	
  }ss:

  	
   

  	
   

  

 

On the ____ day of
July in the year 2006 before me, the undersigned, personally appeared
_______________, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

 

	
   

  	
   

  
	
   

  	
  Notary Public

  

 

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EXHIBIT A

CONFIDENTIALITY,
NON-COMPETITION AND NON-SOLICITATION AGREEMENT

In
connection with that certain Termination Agreement, dated as August 1, 2006, by
and between myself and Tasker Products Corp. f/k/a Tasker Capital Corp., a
Nevada corporation with its principal place of business located at 39 Old
Ridgebury Rd., Suite 14, Danbury, Connecticut or any subsidiary or parent
corporation thereof (the “Company”), I hereby represent and agree (the “Agreement”)
as follows:

1.         I understand that the Company is a
technology company focused on hygienic applications for the agricultural,
seafood and food processing industries, and that I may have access to or
acquire information with respect to Confidential Information (as defined
below), including software, processes and methods, development tools,
scientific, technical, consulting and/or business innovations.

2.         Protection of Confidential
Information of the Company.  I
understand that my work as an employee of the Company creates a relationship of
trust and confidence between the Company and myself.  During and after the period of my employment
with the Company, I will not use or disclose or allow anyone else to use or
disclose any “Confidential Information” (as defined below) relating to the
Company, its products, services, suppliers, distributors or customers except as
may be necessary in the performance of my work for the Company or as may be
specifically authorized in advance by appropriate officers of the Company. “Confidential
Information” shall include, but not be limited to, information consisting
of research and development, patents, trademarks and copyrights and
applications thereto, technical information, computer programs, software,
methodologies, innovations, software tools, know-how, knowledge, designs,
drawings, specifications, concepts, data, reports, processes, techniques,
documentation, pricing, marketing plans, customer and prospect lists, trade
secrets, financial information, salaries, business affairs, suppliers, profits,
markets, sales strategies, forecasts, employee information and any other
information not available to the general public, whether written or oral, which
I know or have reason to know the Company would like to treat as confidential
for any purpose, such as maintaining a competitive advantage or avoiding
undesirable publicity.  I will keep
Confidential Information secret and will not allow any unauthorized use of the
same, whether or not any document containing it is marked as confidential. These
restrictions, however, will not apply to Confidential Information that has
become known to the public generally through no fault or breach of mine or that
the Company regularly gives to third parties without restriction on use or
disclosure. Upon termination of my work with the Company, I will promptly
deliver to the Company all documents and materials of any nature pertaining to
my work with the Company and I will not take with me any documents or materials
or copies thereof containing any Confidential Information.

3.         Non-Competition.  I agree that during the period of my
employment and for a period of twelve (12) months thereafter (the “Restrictive
Period”), I will not directly or indirectly:  (i) market or sell products or perform
services such as are offered or conducted by the Company, its affiliates and
subsidiaries during the period of my employment, to any customer or client of
the Company or prospective customer or client of the Company; or (ii) engage
in,

 

 

manage, operate, be connected with or acquire any
interest in, as an advisor, agent, owner, partner, co-venturer, principal,
director, shareholder, lender, employee or otherwise, any business competitive
with the Company, its affiliates or subsidiaries, particularly with respect to
services as conducted by the Company during the period of my employment (a “Competitive Business”), except that I may own, in the
aggregate, less than 5.0% of the outstanding shares of any publicly held
corporation which is a Competitive Business which has shares listed for trading
on a securities exchange registered with the Securities and Exchange Commission
or through the automatic quotation system of a registered securities
association.  The geographic scope of
this provision is worldwide. 
Notwithstanding this Agreement, the Company will permit me to work for
Phitex Ltd. LLP before the expiration of the Restrictive Period.

4.         Non-Solicitation.  I understand that my work as an employee of
the Company creates a relationship of trust and confidence between myself and
the Company.  During the Restrictive Period,
I will not request or otherwise attempt to induce or influence, directly or
indirectly, any present customer, distributor or supplier, or prospective
customer, distributor or supplier, of the Company, or other persons sharing a
business relationship with the Company to cancel, to limit or postpone their
business with the Company, or otherwise take action which might be to the
material disadvantage of the Company. During the Restrictive Period, I will not
hire or solicit for employment, directly or indirectly, or induce or actively
attempt to influence, any employee, agent, officer, director, contractor,
consultant or other business associate of the Company to terminate his or her
employment or discontinue such person’s consultant, contractor or other business
association with the Company. The geographic scope of this provision is
worldwide.

5.         Scope of Non-Competition and
Non-Solicitation Provisions.  The
parties hereto agree that, due to the nature of the Company’s business, and
that of its affiliates and subsidiaries, the duration and geographic scope of
the non-competition and non-solicitation provisions set forth above in Sections
3 and 4 are reasonable.  In the event
that any court determines that the duration or the geographic scope, or both,
are unreasonable and that either of such provisions are to that extent
unenforceable, the parties hereto agree that such provision shall remain in
full force and effect for the greatest time period and in the greatest area
that would not render it unenforceable. The parties intend that the
non-competition and non-solicitation provisions in Sections 3 and 4 herein
shall be deemed to be a series of separate covenants, one for each and every
county of each and every state of the United States of America and each and
every political subdivision of each and every country outside the United States
of America where this provision is intended to be effective.  I agree that damages are an inadequate remedy
for any breach of such provisions and that the Company, its affiliates and
subsidiaries, shall, whether or not they are pursuing any potential remedies at
law, be entitled to equitable relief in the form of preliminary and permanent
injunctions without bond or other security upon any actual or threatened breach
of either of these provisions.  If I
violate either of Section 3 or Section 4 herein, the duration of such section
automatically shall be extended against me for a period equal to the period
during which I shall have been in violation of such section.  The covenants contained in the
non-competition and non-solicitation provisions set forth above are deemed to
be material and the Company is entering into this Agreement relying on such
covenants.

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6.         Other Agreements.  I represent that my performance of all the
terms of this Agreement and my duties as an employee of the Company will not
breach any invention assignment agreement, confidential information agreement,
non-competition agreement, non-solicitation agreement or other agreement with
any present or former employer or other party. 
I represent that I have not and will not bring with me to the Company or
use in the performance of my duties for the Company any documents or materials
of a present or former employer that are not generally available to the public.

7.         Disclosure of this Agreement.  I hereby authorize the Company to notify
others, including, but not limited to, customers of the Company and any of my
future employers, of the terms of this Agreement and my responsibilities
hereunder.

8.         Injunctive Relief.  I understand that in the event of a breach or
threatened breach of this Agreement by me the Company may suffer irreparable
harm and monetary damages alone would not adequately compensate the Company.  The Company will therefore be entitled to
injunctive relief to enforce this Agreement.

9.         Enforcement and Severability.  I acknowledge that each of the provisions in
this Agreement are separate and independent covenants.  I agree that if any court shall determine
that any provision of this Agreement is unenforceable with respect to its term
or scope such provision shall nonetheless be enforceable by any such court upon
such modified term or scope as may be determined by such court to be reasonable
and enforceable.  The remainder of this
Agreement shall not be affected by the unenforceability or court ordered
modification of a specific provision.

10.       Successors and Assigns.  I understand that neither this Agreement, nor
any of my rights, powers, duties or obligations hereunder, may be assigned by
me.  This Agreement shall be binding upon
and inure to my benefit and to my heirs and legal representatives and the
Company and its successors.  I further
understand that the Company may assign this Agreement or any part hereof to any
successor of the Company, including, without limitation, any company or
companies acquiring, directly or indirectly, all or substantially all of the
assets of the Company, whether by merger, consolidation, purchase, lease or
otherwise.

11.       Governing Law.  The laws of the State of Connecticut shall
govern the interpretation, validity and performance of the terms of this
Agreement, regardless of the law that might be applied under principles of
conflicts of law.

12.       Superseding Agreement.  I understand and agree that this Agreement
contains the entire agreement of the parties with respect to the subject matter
hereof and supersedes all previous agreements and understandings between the
parties with respect to its subject matter.

13.       Counterparts.  I acknowledge that this Agreement may be
executed in two or more counterparts, each of which will take effect as an
original and all of which will evidence one and the same agreement.

14.       Consent to Jurisdiction. I hereby
consent to the sole and exclusive jurisdiction and venue of the courts of the
State of Connecticut or the United States District Court for the District

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of Connecticut for any action arising from or relating
to this Agreement or the subject matter hereof.

15.       Notice. All notices to the Company
under or relating to this Agreement shall be in writing to the address
indicated on the first page of this Agreement, and all notices to me under or
relating to this Agreement shall be in writing to the address indicated on the
signature page of thus Agreement.  Notice
shall be deemed effective when received, or on the first day following the date
of delivery to the carrier if sent by a nationally recognized overnight
delivery service, or on the second day following the date of the postmark if
sent by prepaid certified mail, return receipt requested.

16.       Acknowledgments.  I acknowledge that I have read this
Agreement, was given the opportunity to ask questions and sufficient time to
consult an attorney and I have either consulted an attorney or affirmatively
decided not to consult an attorney.  This
Agreement does not alter my status as an employee-at-will and that my
employment may be terminated at any time, with or without cause.  I also understand that my obligations under
this Agreement survive the termination of my employment with the Company.

 

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I ACKNOWLEDGE THAT I HAVE HAD A
FULL OPPORTUNITY TO REVIEW THIS AGREEMENT AND CONSULT WITH COUNSEL OF MY CHOICE
IF I SO CHOOSE REGARDING ITS TERMS, AND THAT I AM FREELY ENTERING INTO THIS
AGREEMENT WITH A FULL UNDERSTANDING OF ITS EFFECTS.  I FURTHER UNDERSTAND THAT THIS AGREEMENT
SUPERSEDES ANY AND ALL PRIOR OR CONTEMPORANEOUS REPRESENTATIONS OR AGREEMENTS,
WHETHER ORAL, WRITTEN, OR IMPLIED, AND MAY NOT BE MODIFIED IN ANY WAY EXCEPT BY
A SIGNED WRITING WHICH SPECIFICALLY REFERS TO THIS AGREEMENT AND IS SIGNED BY
THE PRESIDENT OF THE COMPANY.

IN WITNESS WHEREOF, the parties
have executed this Agreement as of the first date written below.

Date:  8/1/06

 

	
  EMPLOYEE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Tasker Products Corp.

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ James R.
  Burns

  	
  By:  

  	
      /s/ Richard D. Falcone

  
	
  Print Name: 

  	
  JAMES BURNS 

  	
   

  	
  Name: Richard D. Falcone

  
	
  Address:

  	
  100 Mill Plains Rd. 

  	
   

  	
  Title: CEO

  
	
   

  	
  Danbury, CT 06818

  	
   

  	
   

  

 

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EXHIBIT B

RELEASE AGREEMENT

THIS RELEASE AGREEMENT
(the “Release”) is made as of the 1st day of August, 2006 by and between
JAMES BURNS (“Employee”) and TASKER PRODUCTS CORP. f/k/a TASKER CAPITAL
CORP. (the “Company”).

WHEREAS, Employee’s
employment by the Company will terminate; and

WHEREAS, in connection
with that termination and pursuant to that certain Termination Agreement by and
between the Company and Employee dated as of the date hereof (the “Termination
Agreement”), the Company has agreed to pay Employee certain amounts,
subject to the execution of this Release.

NOW THEREFORE, in
consideration of these premises and the mutual promises contained herein, and
intending to be legally bound hereby, the parties agree as follows:

1.             Termination.
The Company has terminated the Employee’s employment with the Company as Vice
President of Business Development and the Employee hereby resigns and withdraws
from all other positions (as an employee, officer, director or board committee
member or otherwise) of the Company and of any subsidiary or affiliate of the
Company (together with the Company the “Company Entities”), effective as of the
open of business on July 11, 2006 (the “Effective Date”).

2.             Acknowledgements.  Employee acknowledges that: (i) the payments
described in Section 2 of the Termination Agreement constitute full
settlement of all his rights under the Termination Agreement,  (ii) he has no entitlement under any other
severance or similar arrangement maintained by the Company, and (iii) except as
otherwise provided specifically in this Release, the Company does not and will
not have any other liability or obligation to him.  Employee further acknowledges that, in the
absence of his execution of this Release, he would not otherwise be entitled to
the payments described in Section 2 of the Termination Agreement.

3.             Release
and Covenant Not to Sue.

3.1.          Release.  Employee hereby fully and forever releases
and discharges the Company (including, for purposes of this Section 3,
all predecessors and successors, subsidiaries, affiliates, assigns, officers,
directors, trustees, employees, agents and attorneys, past and present) from
any and all claims, demands, liens, agreements, contracts, covenants, actions,
suits, causes of action, obligations, controversies, debts, costs, expenses,
damages, judgments, orders and liabilities, of whatever kind or nature, direct
or indirect, in law, equity or otherwise, whether known or unknown, arising
through the date of this Release, out of Employee’s employment by the Company
or the termination thereof, including, but not limited to, any claims Employee
may have for wages, bonuses, commissions, penalties, deferred compensation,
vacation pay, separation benefits, defamation, libel, slander, negligence,
breach of covenant of good faith and fair dealing, personal injury, emotional
distress, breach of contract, breach of confidentiality, invasion of privacy,
negligence, improper discharge (based on contract, common law, or statute,
including any federal, state or local statute or ordinance prohibiting
discrimination or retaliation

 

 

in employment), alleged violation of the United States
Constitution, the Constitution of the State of New Jersey, the Civil Rights Act
of 1964, including Title VII, the Civil Rights Act of 1991, the Age
Discrimination in Employment Act of 1967, the Americans with Disabilities Act
of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security
Act of 1974, the Worker Adjustment and Retraining Notification Act, the Older
Workers Benefit Protection Act, the Equal Pay Act of 1963, the Family Medical
Leave Act, the Rehabilitation Act of 1973, or any other federal, state
(including, but not limited to Connecticut) or local statutes concerning
employment, labor, and/or human rights or discrimination laws, and any claim
for discrimination or retaliation based on sex, race, color, creed, religion,
age, national origin, marital status, sexual orientation, disability, or
perceived disability, medical condition, status with regard to public assistance,
sexual harassment, or any other protected class status, but excludes claims
arising after the date hereof out of any breach of this Release.

3.2.  Covenant
Not to Sue.  Employee expressly
represents that he has not filed a lawsuit or initiated any other
administrative proceeding against the Company and that he has not assigned any
claim against the Company to any other person or entity.  The Employee further promises not to initiate
a lawsuit or to bring any other claim against the other arising out of or in
any way related to Employee’s employment by the Company or the termination of
that employment.

3.3.          Claims Not Released.  In addition, the forgoing will not be deemed
to release the Employee from claims solely (a) to enforce this Release, (b) to
enforce of the Termination Agreement, (c) to enforce the Confidentiality,
Non-Competition and Non-Solicitation Agreement by and between Executive and the
Company, executed concurrently herewith (the “Non-Compete Agreement”) or
(d) for indemnification under the Company’s By-Laws, under applicable law,
under any indemnification agreement between the Company and Executive or under
any similar arrangement.

4.             Non-Competition
and Confidentiality Obligations. 
Employee acknowledges that the Non-Compete Agreement survives the
termination of his employment.  Employee
affirms that the restrictions contained in the Non-Compete Agreement are
reasonable and necessary to protect the legitimate interests of the Company,
that he received adequate consideration in exchange for agreeing to those
restrictions, and that he will abide by those restrictions.

5.             Non-Disparagement.  The Employee will not disparage Company or
any of its directors, officers, agents or employees or otherwise take any
action which could reasonably be expected to adversely affect the personal or
professional reputation of Company or any of its directors, officers, agents or
employees.

6.             Cooperation.  Employee further agrees that he will
cooperate fully with the Company and its counsel with respect to any matter
(including litigation, investigations, or governmental proceedings) which
relates to matters with which Employee was involved during or which otherwise
relate to his employment with Company. 
Employee shall render such cooperation in a timely manner on reasonable
notice from the Company.

7.             Rescission
Right.  Employee expressly
acknowledges and recites that (a) he has read and understands this Release in
its entirety, (b) he has entered into this Release knowingly and voluntarily,
without any duress or coercion; (c) he has been advised orally and is hereby

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advised in writing to consult with an attorney with
respect to this Release before signing it; (d) he was provided twenty-one (21)
calendar days after receipt of the Release to consider its terms before signing
it; and (e) he is provided seven (7) calendar days from the date of signing to
terminate and revoke this Release in which case this Release shall be
unenforceable, null and void.  Employee
may revoke this Release during those seven (7) days by providing written notice
of revocation to the Company. This Release will become effective and
enforceable on the day following the expiration of the seven-day revocation
period (the “8th Day”).  In the event that Employee does revoke this
Release in writing prior to the 8th Day, this Release shall not be effective or
enforceable and, in such event, all rights, agreements and obligations created
by this Release shall be ineffective, null, void and unenforceable, except for
the termination of his employment, which is effective as of the Effective Date
(as defined in the Termination Agreement) even if Employee does revoke this
Release.  Employee further understands
that if he revokes this Release in accordance with this Section 7, Employee
will not receive the Severance Compensation and he will be obligated to return
any payments already received

8.             Challenge.  If Employee violates or challenges the
enforceability of this Release, no further payments under Section 2 of
the Termination Agreement will be paid or provided to Employee.

9.             Miscellaneous.

9.1.          No Admission of Liability.  This Release is not to be construed as an
admission of any violation of any federal, state or local statute, ordinance or
regulation or of any duty owed by the Company to Employee.  There have been no such violations, and the
Company specifically denies any such violations.

9.2.          Successors and Assigns.  This Release will inure to the benefit of and
be binding upon the Company and Employee and their respective successors, executors,
administrators, heirs and (in the case of the Company) permitted assigns. The
Company may assign this Release to any successor to all or substantially all of
its assets and business by means of liquidation, dissolution, merger,
consolidation, transfer of assets, or otherwise.  Employee may not make any assignment of this
Release or any interest herein.

9.3.          Severability.  The provisions of this Release are
severable.  If any provision or the scope
of any provision is found to be unenforceable or is modified by a court of
competent jurisdiction, the other provisions or the affected provisions as so
modified shall remain fully valid and enforceable.

9.4.          Entire Agreement; Amendments.  Except as otherwise provided herein, this
Release contains the entire agreement and understanding of the parties hereto
relating to the subject matter hereof, and merges and supersedes all prior and
contemporaneous discussions, agreements and understandings of every nature
relating subject matter hereof.  This
Release may not be changed or modified, except by an agreement in writing
signed by each of the parties hereto.

9.5.          Governing Law.  This Release shall be governed by, and
enforced in accordance with, the laws of the State of Connecticut, without
regard to the application of the principles of conflicts of laws.

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9.6.          Counterparts and Facsimiles.  This Release may be executed, including
execution by facsimile signature, in one or more counterparts, each of which
shall be deemed an original, and all of which together shall be deemed to be
one and the same instrument.

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IN WITNESS WHEREOF, the
Company has caused this Release to be executed by its duly authorized officer,
and Employee has executed this Release, in each case as of the date first above
written.

 

	
  

  	
  TASKER PRODUCTS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard D.
  Falcone

  
	
   

  	
   

  	
  Name: Richard D. Falcone

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ James Burns

  
	
   

  	
   

  	
  JAMES BURNS

  

 

 5Exhibit 4.7

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
SECURITY AS PERMITTED BY THE SECURITIES PURCHASE AGREEMENT PURSUANT TO
WHICH THE SECURITIES WERE ISSUED.

Original Issue
Date: May 24, 2006

	
  No. 1

  	
   

  	
  $750,000

  

 

12% SENIOR SECURED
CONVERTIBLE DEBENTURE

This 12% Senior
Secured Convertible Debenture (this “Debenture”)
is a duly authorized and issued 12% Senior Secured Convertible Debenture of
UNIPIXEL, INC., a Delaware corporation (“UniPixel”),
and UNIPIXEL DISPLAYS, INC., a Texas corporation (“UniPixel
Displays”), having their principal place of business located
at 8708 Technology Forest Place, Suite 100, The Woodlands, Texas 77381, for the
principal amount of SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS AND NO CENTS
($750,000), issued in connection with that certain Purchase Agreement (as
defined below) of even date herewith entered into by and among the Company and
the Holder.

FOR VALUE RECEIVED,
UniPixel and UniPixel Displays (collectively, hereinafter referred to as the “Company”) hereby jointly and
severally promise to pay to TRIDENT GROWTH FUND, L.P., a Delaware limited
partnership, having its principal place of business located at 700 Gemini,
Houston, Texas 77058, or its registered assigns (the “Holder”),
the principal sum of $750,000 on the earlier of (a) May 23, 2007; (b) the
consummation of a Change of Control Transaction; or (c) upon the closing of a
Qualifying Transaction (the “Maturity Date”),
and to pay interest to the Holder on the then outstanding principal amount of
this Debenture in accordance with the provisions hereof.  This Debenture is subject to the following
additional provisions:

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Section 1.      Definitions.  For
the purposes hereof, in addition to the terms defined elsewhere in this
Debenture: (a) capitalized terms not otherwise defined herein have the meanings
given to such terms in the Purchase Agreement, and (b) the following terms
shall have the following meanings:

“Bankruptcy Event” means any of the following events: (a) the Company or any Subsidiary (as such term is defined in Rule 1.02(s) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Subsidiary thereof; (b) there is commenced against the Company or any Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company or any Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered; (d) the Company or any Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 days; (e) the Company or any Subsidiary thereof makes a general assignment for the benefit of creditors; (f) the Company or any Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; (g) the Company or any Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing; or (h) an application for the appointment of a receiver or liquidator for the Company or any of its material assets.
“Capital Lease” means any lease of property (real, personal or mixed) which, in accordance with GAAP, should be capitalized on the lessee’s balance sheet or for which the amount of the asset and liability thereunder as if so capitalized should be disclosed in a note to such balance sheet.
“Cash Flow” means an amount equal to (i) the Company’s Consolidated EBITDA, minus (ii) the Company’s Consolidated non-financed Capital Expenditures.

“Consolidated
EBITDA” means, for any Person for any period:

(i)            the consolidated
net income of such Person and its Consolidated Subsidiaries for such period
(after Income Taxes), calculated in accordance with GAAP, but excluding:

(A)          any gain arising from the sale of
capital assets,

(B)           any gain arising from any write-up of
assets,

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(C)           earnings of any other Person,
substantially all of the assets of which have been acquired by such Person or
its Consolidated Subsidiaries in any manner, to the extent that such earnings
were realized by such other Person prior to the date of such acquisition.

(D)          earnings of any Person in which the
Person or its Consolidated Subsidiaries has an ownership interest (other than
wholly owned Subsidiaries of such Person ), unless such earnings have actually
been received by the Person or its Consolidated Subsidiaries in the form of
cash distributions,

(E)           earnings of any Person to which
assets of the Person or its Consolidated Subsidiaries shall have been sold,
transferred or disposed of, or into which the Person shall have merged, to the
extent that such earnings arise prior to the date of such transaction,

(F)           any gain arising from the acquisition
of any securities of such Person or any of its Consolidated Subsidiaries, and

(G)           any extraordinary gain realized by
such Person or any of its Consolidated Subsidiaries during such period.

(ii)           plus the following,
but only in each case to the extent incurred by the Company and its
Consolidated Subsidiaries during such period and deducted in the calculation
above for such period,

(A)          all income and franchise taxes,

(B)           all Interest Expense,

(C)           all depreciation expense, and

(D)          all amortization expense.

“Current Assets” means, at any particular time, all amounts which, in conformity with GAAP, would be included as current assets on a consolidated balance sheet of the Company and its Subsidiaries; provided however, there shall be excluded therefrom (a) all prepaid expenses of every type and nature, (b) all amounts due from partners, officers, stockholders or other Affiliates, and all loans due from employees, and (c) all deferred charges.
“Current Liabilities” means, at any particular time, all amounts (including deferred taxes) which, in conformity with GAAP, would be included as current liabilities on a consolidated balance sheet of the Company and its Subsidiaries.

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“Current Ratio” means the ratio of Current Assets to Current Liabilities.
“Dallas Courts” shall have the meaning set forth in Section 7(e).
“Debenture Register” shall have the meaning set forth in Section 2(b).
“Event of Default” shall have the meaning set forth in Section 6.
“GAAP” mean generally accepted accounting principles.
“Interest Expense” means, with respect to any Person and for any period (without duplication), all interest on that Person’s Debt, whether paid in cash or accrued as a liability and payable in cash during any subsequent period (including, without limitation, the interest component of Capital Leases), as determined by GAAP.
“Late Fees” shall have the meaning set forth in the second paragraph to this Debenture.
“Liabilities” mean all liabilities, obligations and indebtedness of any and every kind and nature (including, without limitation, lease obligations, accrued interest, charges, expenses, attorneys’ fees and other sums) chargeable to the Company and made to or for the benefit of the Company, whether arising under this Debenture or arising under the any of the Transaction Documents, whether heretofore, now or hereafter owing, arising, due or payable from Company to the Holder and however evidenced, credited, incurred, acquired or owing, whether primary, secondary, direct, contingent, fixed, or otherwise, including obligation of performance.
“Net Income” or “Net Loss”  means, with respect to any Person for any period, the net income or net loss of such Person determined in accordance with GAAP, after payment of income Taxes but excluding any extraordinary or non-recurring items.
“Original Issue Date” shall mean the date of the first issuance of this Debenture regardless of the number of transfers of this or any portion of this Debenture and regardless of the number of instruments which may be issued to evidence such Debenture or Debentures.
 “Purchase Agreement” means the Securities Purchase Agreement of even date herewith, to which the Company and the original Holder are parties, as amended, modified or supplemented from time to time in accordance with its terms.

 4
 

 

 

Section 2.              Interest.

a)             Payment of Interest in Cash. The Company shall
pay interest, in cash, to the Holder on the then outstanding principal amount
of this Debenture at the rate of 12% per annum, payable monthly in arrears in
cash via wire transfer or by automated bank transfer in immediately available
and freely transferable funds (as requested by Purchaser), on the last day of
each month for the period beginning on the Initial Issuance Date and ending on
the Maturity Date or such earlier or later time when this Debenture is paid or
prepaid in full (except that, if any such date is not a Business Day, then such
payment shall be due on the next succeeding Business Day) (each such date, an “Interest Payment Date”), subject
to the conversion rights of Holder as stated herein.

b)            Interest Calculations. Interest shall be
calculated on the basis of a 360-day year and shall accrue daily commencing on
the Original Issue Date until payment in full of the principal sum, together
with all accrued and unpaid interest and other amounts which may become due
hereunder, has been made.  Interest
hereunder will be paid to the Person in whose name this Debenture is registered
on the records of the Company regarding registration and transfers of Debentures
(the “Debenture Register”).

c)             Late Fee. 
All overdue accrued and unpaid interest to be paid hereunder shall
entail a late fee at the rate of 18% per annum (or such lower maximum amount of
interest permitted to be charged under applicable law or regulation) (“Late Fee”) which will accrue
daily, from the date such interest is due hereunder through and including the
date of payment.

d)            Prepayment. 
The Company may prepay all or
any portion of the then outstanding principal amount of this Debenture without
any prepayment premium or discount by providing Holder not less than 30 days
prior written notice, such outstanding principal balance remaining subject to
Holder’s conversion rights hereunder until the actual prepayment is made
following such notice period.

Section 3.              Conversion Right; Adjustments.

The
Holder of this Debenture shall have the right, at Holder’s option, immediately
following the Original Issue Date, to convert all, or, in multiples of $50,000,
any part of this Debenture into such number of fully paid and nonassessable
shares of Common Stock as shall be provided herein.  The Holder of this Debenture may exercise the
conversion right by giving written notice (a “Conversion
Notice”) to the Company of the exercise of such right and
stating the name or names in which the stock certificate or stock certificates
for the shares of Common Stock are to be issued and the address to which such
certificates shall be delivered.  The
Conversion Notice shall be accompanied by this Debenture.  The number of shares of Common Stock that
shall be issuable upon 

 5
 

 

conversion
of the Debenture shall equal the then outstanding principal amount of this
Debenture plus all accrued and unpaid interest due and payable on the Debenture
on the Conversion Date (defined
below) or a portion thereof (in the discretion of the Holder) divided by the Conversion Price (as defined below) in
effect on the date the Conversion Notice is given.  Conversion shall be deemed to have been
effected on the date the Conversion Notice is delivered to the Company (each, a
“Conversion Date”).  Within 10 business days after a Conversion
Date, the Company shall issue and deliver by hand against a signed receipt
therefor or by reputable overnight delivery carrier to the address designated
in the Conversion Notice, a stock certificate or stock certificates of the
Company representing the number of shares of Common Stock to which Holder is
entitled and a check or cash in payment of all interest accrued and unpaid
under the Debenture being converted up to and including the Conversion Date.  If a stock certificate or
stock certificates are not delivered within 10 business days after a Conversion
Date, the Company shall pay and/or grant to Holder 0.1% (on a Fully Diluted
Basis) of the Company’s Common Stock per day until such certificates are delivered.
The conversion rights will be governed by the following provisions:

a)    Conversion Price. On the issue
date hereof and until such time as an adjustment shall occur, the Conversion
Price shall be equal to the lesser of:

(i)           90%
of the average price per share of the Common Stock and Common Stock
Equivalents sold to any Person in the first Qualifying Transaction to be
consummated following the Original Issue Date (determined by dividing the total
number of shares of Common Stock issued plus shares issuable under Common Stock
Equivalents in such Qualifying Transaction, by the aggregate consideration
received by the Company plus all consideration to be received upon
exercise or conversion of all Common Stock Equivalents issued in such
Qualifying Transaction).  With respect to
determining the price paid per share in any asset purchase, only shares of
Common Stock actually issued and outstanding shall be used in determining such
per share calculation; or

(ii)          $1.75
per share (which such Conversion Price shall apply in the event no Qualifying
Transaction has closed on or by the Conversion Date.

Notwithstanding the foregoing, the
parties agree that the Conversion Price shall be adjusted down from the
determination resulting from the foregoing formula by mutual agreement of the
parties in the event that any convertible securities are sold to investors in
any Qualifying Transaction, the parties hereby recognizing that the issuance
thereof, even at an exercise or conversion price above the Conversion Price,
would increase the value of the securities issued to such investors and thus
entitle Holder to a greater number 

 6
 

 

of shares of Common Stock upon conversion
hereof.  The parties agree to negotiate
such determination in good faith.

b)   Adjustment
for Issuance of Shares at less than the Conversion Price.

(i)           If and whenever any Additional Common
Stock (as herein defined) shares shall be issued by the Company (the “Stock Issue Date”) for a
consideration per share less than the Conversion Price, then in each such case
the initial Conversion Price shall be reduced to a new Conversion Price equal
to the consideration per share received by the Company for the additional
shares of Common Stock then issued, and accordingly, the number of shares
issuable to Holder upon conversion shall be proportionately increased as a
result thereof; and, in the case of shares issued without consideration, the
initial Conversion Price shall be reduced in amount and the number of shares
issued upon conversion shall be increased in an amount so as to maintain for
the Holder the right to convert this Debenture into shares equal in amount to
the same percentage interest in the Common Stock of the Company as existed for
the Holder immediately preceding the Stock Issue Date.

(ii)         Consideration for Shares.   In case of the issuance of Additional Common
Stock for a consideration part or all of which shall be cash, the amount of the
cash consideration therefor shall be deemed to be the amount of the cash
received by Company for such shares.  In
case of the issuance of any shares of Additional Common Stock for a
consideration part or all of which shall be other than cash, the amount of the
consideration therefor, other than cash, shall be deemed to be the then fair
market value of the property received as determined by an investment banking
firm selected by Holder.

(iii)         Reclassification of Shares.   In case of the reclassification of
securities into shares of Common Stock, the shares of Common Stock issued in
such reclassification shall be deemed to have been issued for a consideration
other than cash.  Shares of Additional
Common Stock issued by way of dividend or other distribution on any class of
stock of the Company shall be deemed to have been issued without consideration.

(iv)        Split up or Combination of Shares.   In case issued and outstanding shares of
Common Stock shall be subdivided or split up into a greater number of shares of
the Common Stock, the Conversion Price shall be proportionately decreased, and
in case issued and outstanding shares of Common Stock shall be combined into a
smaller number of shares of Common Stock, the Conversion Price shall be
proportionately increased, such increase or decrease, as the case may be,
becoming effective at the time of record of the split-up or combination, as the
case may be.

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(v)         The term “Additional
Common Stock” herein shall mean, other than with respect to an
Exempt Issuance, in the most broadest sense all shares of Common Stock or
Common Stock Equivalents hereafter issued by the Company (including, but not
limited to Common Stock held in the treasury of the Company, except Common
Stock issued upon the conversion or exercise of any security purchased in
connection with the Purchase Agreement.

c)    Adjustment for Mergers, Consolidations,
Etc..

(i)           In the event of distribution to all
Common Stock holders of any stock, indebtedness of the Company or assets
(excluding cash dividends or distributions from retained earnings) or other
rights to purchase securities or assets, then, after such event, this Debenture
will be convertible into the kind and amount of securities, cash and other
property which the holder of the Debenture would have been entitled to receive
if the holder owned the Common Stock issuable upon conversion of the Debenture
immediately prior to the occurrence of such event.

(ii)          In case of any capital reorganization,
reclassification of the stock of the Company (other than a change in par value
or as a result of a stock dividend, subdivision, split up or combination of
shares), this Debenture shall be convertible into the kind and number of shares
of stock or other securities or property of the Company to which the holder of
the Debenture would have been entitled to receive if the holder owned the
Common Stock issuable upon conversion of the Debenture immediately prior to the
occurrence of such event.  The provisions
of the foregoing sentence shall similarly apply to successive reorganizations,
reclassifications, consolidations, exchanges, leases, transfers or other
dispositions or other share exchanges.

d)   Notice of Adjustment.   In the event the Company shall propose to
take any action which shall result in an adjustment in the Conversion Price,
the Company shall give notice to the Holder, which notice shall specify the
record date, if any, with respect to such action and the date on which such
action is to take place.  Such notice
shall be given on or before the earlier of 10 days before the record date or
the date which such action shall be taken. 
Such notice shall also set forth all facts (to the extent known)
material to the effect of such action on the Conversion Price and the number,
kind or class of shares or other securities or property which shall be
deliverable or purchasable upon the occurrence of such action or deliverable
upon conversion of this Debenture. 
Additionally, following completion of an event wherein the Conversion
Price shall be adjusted, the Company shall furnish to the holder of this
Debenture a statement, signed by an authorized officer of the Company of the
facts creating such adjustment and specifying the resultant adjusted Conversion
Price then in effect.

 8
 

 

 

e)    Reservation of Shares.  The Company warrants
and agrees that it shall at all times reserve and keep available, free from
preemptive rights, sufficient authorized and unissued shares of Common Stock to
effect conversion of this Debenture.

f)    Registration Rights.  The Holder has certain rights with respect to
the registration of shares of Common Stock issued upon the conversion of this
Debenture, such rights being specifically set forth in the Purchase Agreement
entered into by and between Holder and the Company on the date hereof.

g)   Exercise Limitations.  The Holder shall not have the right to
convert any portion of this Debenture, pursuant to Section 3 or otherwise, to
the extent that after giving effect to such issuance after exercise, the Holder
(together with the Holder’s affiliates), as set forth on the applicable
Conversion Notice, would beneficially own in excess of 4.99% (or as applicable,
9.99%) of the number of shares of the Common Stock outstanding immediately
after giving effect to such issuance.  For purposes of the foregoing
determination, the number of shares of Common Stock beneficially owned by the
Holder and its affiliates shall include the number of shares of Common Stock
issuable upon such conversion of this Debenture less the number of shares of
Common Stock which would be issuable upon (A) conversion of the remaining,
unexercised portion of this Debenture and (B) exercise or conversion of the
unexercised or unconverted portion of any other Securities (including, without
limitation, any other Debentures or Warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained herein
beneficially owned by the Holder.  Except as set forth in the preceding
sentence, for purposes of this Section 3(g), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Exchange Act.  To the extent that the limitation contained in
this Section 3(g) applies, the determination of whether this Debenture is
convertible (in relation to other securities owned by the Holder) and of which
a portion of this Debenture is convertible shall be in the sole discretion of
Holder.  For purposes of this Section
3(g), in determining the number of outstanding shares of Common Stock, the
Holder may rely on the number of outstanding shares of Common Stock as
reflected in (x) Schedule 3.1(g) to the Purchase Agreement, (y) a more
recent public announcement by the Company or (z) any other notice by the
Company or the Company’s Transfer Agent setting forth the number of shares of
Common Stock outstanding.  Upon the written or oral request of the Holder,
the Company shall within two Business Days confirm orally and in writing to the
Holder the number of shares of Common Stock then outstanding.  The
provisions of this Section 3(g) may be waived by the Holder upon, at the
election of the Holder, not less than 61 days’ prior notice to the Company, and
the provisions of this Section 3(g) shall continue to apply until such 61st day
(or such later date, as determined by the Holder, as may be specified in such
notice of waiver).

 9
 

 

 

Section 4.               Registration of Transfers and
Exchanges.

a)             Different Denominations. This Debenture is
exchangeable for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holder surrendering the
same.  No service charge will be made for
such registration of transfer or exchange.

b)            Investment Representations. This Debenture has been
issued subject to certain investment representations of the original Holder set
forth in the Purchase Agreement and may be transferred or exchanged only in
compliance with the Purchase Agreement and applicable federal and state
securities laws and regulations.

c)             Reliance on Debenture Register. Prior to due
presentment to the Company for transfer of this Debenture, the Company and any
agent of the Company may treat the Person in whose name this Debenture is duly
registered on the Debenture Register as the owner hereof for the purpose of
receiving payment as herein provided and for all other purposes, whether or not
this Debenture is overdue, and neither the Company nor any such agent shall be
affected by notice to the contrary.

Section 5.               Negative Covenants. So
long as any portion of this Debenture is outstanding, without the prior written
consent of the Holder, which consent may be withheld in the sole discretion of
the Holder, the Company will not and will not permit any of its Subsidiaries to
directly or indirectly:

a)             Indebtedness. 
Other than equipment leases of up to $25,000 in the aggregate for any 12
month period, enter into, create, incur, assume or suffer to exist any
indebtedness or Liens, on or with respect to any of its property or assets now
owned or hereafter acquired or any interest therein or any income or profits
therefrom that is senior to, or pari  passu with, in any respect,
the Company’s obligations under the Debentures; provided,
however, that this provision shall not prevent the Company from
entering into any transaction, the purpose of which is to repay this Debenture,
provided all proper notices are given in accordance herewith;

b)            Repayment of Indebtedness.  Repay any principal due and owing on any
promissory notes, debentures, or other forms of indebtedness, other than (i)
periodic interest payments due and owing thereunder; (ii) repayment due of any
principal amount or interest due or becoming due under this Debenture; and
(iii) repayment of the indebtedness set forth in Schedule 4.9 to the Purchase
Agreement; provided, nothing contained in this section shall prohibit the
Company from making any payments with respect to trade payables made in the
ordinary course of the Company’s business;

 10

 

c)             Repayment of Shares.  Repay, repurchase or offer to repay,
repurchase or otherwise acquire more than a de minimus number of shares of its
Common Stock or other equity securities or as otherwise permitted by the
Transaction Documents; 

d)            Bylaws.      Amend
its certificate of incorporation, bylaws or other charter documents so as to
adversely affect any rights of the Holder in its capacity as a holder of the
Debentures;

e)             Loans and Investments.  Lend or advance money, credit or property to
any person or entity, or invest in (by capital contribution or otherwise), or
purchase or repurchase the stock or indebtedness or assets or properties of any
person or entity, or agree to do any of the foregoing, other than in the
ordinary course of business; 

f)             Guarantees. 
Assume, endorse or otherwise become or remain liable in connection with
the obligations (including accounts payable) of any other person or entity,
other than in the ordinary course of business.

g)            Sale of Assets, Dissolution, Etc.  Transfer, sell, assign, lease or otherwise
dispose of any of its properties or assets, or any assets or properties
necessary or desirable for the proper conduct of its business, or transfer,
sell, assign or otherwise dispose of any of its accounts, or contract rights to
any person or entity, or change the nature of its business, wind-up,
liquidate or dissolve, or agree to any of the foregoing, other than in the
ordinary course of business;

h)            Acquisition of Assets.  Agree to purchase, acquire, or lease of any
assets of any Person, other than in the ordinary course of business;

i)              Compensation. 
Increase the compensation of any of its officers or consultants making
more than $100,000 per year, hire any relative of any officer, director or
shareholder of the Company, or pay a bonus to any such person.  

j)              Subsidiaries. Establish or form a partially or
wholly owned Subsidiary.  Sell, transfer
or assign any interest in the Company’s existing Subsidiaries.

k)             No Further Issuance of Securities.  Other than in accordance herewith, create,
issue or permit the issuance of any additional securities of the Company or of
any of its Subsidiaries (including with respect to any Qualifying Transaction),
if any, or any rights, options or warrants to acquire any such securities and
in the event that Company desires to issue securities with preferences or
rights greater than that which the Common Stock has, the Holder will have the
option of converting into such stock in lieu of the Common Stock hereby;  

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l)              No Dividends; No Redemption.  Declare any dividend, pay or set aside for
payment any dividend or other distribution, in cash, stock, or other property,
or make any payment to any related parties, including to any preferred
stockholders, as a dividend, redemption, or otherwise, other than the payment
of salaries in the ordinary course of business.

m)            Stock Splits.  
Undertake a reverse or forward stock split or reclassification of the
Common Stock; or

n)            Agreement.  
Enter into any agreement obligating the Company to undertake any of the
matters set forth in this Section 5.

Section 6.             Affirmative Covenants.  So long as any portion of this Debenture is
outstanding and unless the Holder otherwise consents in writing, which consent
may be withheld in the sole discretion of the Holder, the Company will:

a)             Taxes and Liens. 
Promptly pay, or cause to be paid, all taxes, assessments and other
governmental charges which may lawfully be levied or assessed upon the income
or profits of the Company, or upon any property, real, personal or mixed,
belonging to the Company, or upon any part thereof, and also any lawful claims
for labor, material and supplies which if unpaid, might become a lien or charge
against any such property; provided, however, the Company shall
not be required to pay any such tax, assessment, charge, levy or claim so long
as the validity thereof shall be actively contested in good faith by proper
proceedings; but, provided  further that any such tax, assessment,
charge, levy or claim shall be paid or bonded in a manner satisfactory to the
Holder upon the commencement of proceedings to foreclose any lien securing the
same.

b)            Business and Existence.  Do or cause to be done all things necessary
to preserve and to keep in full force and effect any licenses necessary to the
business of the Company, its corporate existence and rights of its franchises,
trade names, trademarks, and permits which are reasonably necessary for the
continuance of its business; and continue to engage principally in the business
currently operated by the Company.

c)             Insurance and Properties.  Keep its business and properties insured at
all times with responsible insurance companies and carry such types and amounts
of insurance as are required by all federal, state and local governments in the
areas which the Company does business and as are usually carried by entities
engaged in the same or similar business similarly situated.  In addition, the Company shall maintain in
full force and effect policies of liability insurance in amounts at least equal
to that currently in effect.

 12
 

 

 

d)            Maintain Property and Assets.  Maintain its property and assets in good
order and repair and, from time to time, make all needed and proper repairs,
renewals, replacements, additions and improvements thereto, so that the
business carried on may be properly and advantageously conducted at all times
in accordance with prudent business management, and maintain annually adequate
reserves for maintenance thereof.

e)             True Books. 
Keep true books of record and account in which full, true and correct
entries will be made of all of its dealings and transactions, and set aside on
its books such reserves as may be required by GAAP, consistently applied, with
respect to all taxes, assessments, charges, levies and claims referred to in
(a) above, and with respect to its business in general, and include such
reserves in interim as well as year-end financial statements.

f)             Right of Inspection.  Permit any person designated by the Holder,
at the Holder’s expense, to visit and inspect any of the properties, books and
financial reports of the Company, all at such reasonable times upon three (3)
Business Days prior notice to Company, and as often as the Holder may
reasonably request, provided the Holder does not unreasonably interfere with
the daily operations of the Company and Holder executes a confidentiality
agreement.

g)            Observance of Laws.  Conform to and duly observe all laws,
regulations and other valid requirements of any regulatory authority with
respect to the conduct of its business except those that would not cause a
Material Adverse Effect, as determined in the reasonable discretion of the
Holder.

h)            Company’s Knowledge of Default.  Upon an officer or director of the Company
obtaining knowledge of, or threat of, an Event of Default hereunder, cause such
officer to promptly, within no more than five (5) Business Days, deliver to the
Holder notice thereof specifying the nature thereof, the period of existence
thereof, and what action the Company has taken and/or proposes to take with
respect thereto.

i)              Notice of Proceedings.  Upon an officer or director of the Company
obtaining knowledge of any material litigation, dispute or proceedings being
instituted or threatened against the Company, or any attachment, levy,
execution or other process being instituted against any assets of the Company,
cause such officer to promptly, within no more than five (5) Business Days,
give the Holder written notice of such litigation, dispute, proceeding, levy,
execution or other process.

j)              Certificate of Covenant Compliance Within 30
days of the last day of each March, June, September and December, the Company
will issue a Certificate of Covenant Compliance, executed by either the Chief
Executive Officer or Chief Financial Officer in the form of Exhibit A
attached hereto.  If the Company is not
in compliance 

 13
 

 

with the covenants
specified in this Section 5, the Company will modify the Certificate of
Covenant Compliance by stating the exception and providing a detailed
explanation of the non-compliance.

k)    Payment of Holder’s Expenses.  If at any time or times hereafter, Holder
employs counsel in connection with the execution and consummation of the
transactions contemplated by this Debenture or to commence, defend or
intervene, file a petition, complaint, answer, motion or other pleading, or to
take any action in or with respect to any suit or proceeding (bankruptcy or
otherwise) relating to this Debenture or any other Transaction Document, or any
other agreement, guaranty, note, instrument or document heretofore, now or at
any time or times hereafter executed by the Company and delivered to Holder, or
to enforce any rights of Holder hereunder whether before or after the
occurrence of any Event of Default, or to collect any of the Liabilities, then
in any of such events, all of the reasonable attorneys’ fees arising from such
services, and any expenses, costs and charges relating thereto, shall be part
of the Liabilities, payable on demand.

l)     Financial Reporting.  The Company shall provide to Holder audited
annual financial statements, audited by mutually agreed upon independent
certified public accounting firm.  Said
financial statements shall be prepared in accordance with GAAP, consistently
applied, and shall be delivered to Holder within ninety (90) days after the
close of the Company’s fiscal year.  The
report of the auditor that accompanies the financial statements shall not
contain any qualifications or limitations, such auditor to be a mutually
agreeable accounting firm.  The Company’s
fiscal year ends on December 31, and shall not be changed without the prior
written consent of the Holder.  The
Company shall provide to Holder unaudited monthly financial statements
(including month to date and year to date actual to prior periods) and a report
in such form as is acceptable to Holder, both presented in accordance with
GAAP, consistently applied (subject to such exceptions for interim financials
as may be noted by the Company thereon), and shall be delivered to Holder
within twenty-five (25) days after the close of the Company’s month.  The Company shall also deliver any other
reports reasonably requested by Holder. 
If the statements or reports are not delivered within twenty-five (25)
days of the close of any month, then the Company will pay a late fee of $250
per day until the report is delivered in adequate form in the sole discretion
of Holder.

m)          Financial Covenants.  As of the 60th date following the date of this Agreement and
thereafter continuing until the Termination Date, the Company must maintain the
following ratios:

(i)           Cash Interest Coverage.
Until this Debenture is repaid in full, the Company shall maintain a
Consolidated EBITDA ratio, based on any of the Company’s quarterly financial
statements (as determined on the last day of each fiscal quarter for the
immediately preceding quarter), of 2.0 or greater. The Consolidated EBITDA
ratio is 

 14
 

 

defined as
Consolidated EBITDA divided by Interest Expense (Consolidated EBITDA ÷ Interest
Expense).

(ii)          Cash Flow Coverage Ratio.  The ratio of (a) the Company’s Cash Flow to
(b) the sum of (i) the Company’s consolidated Interest Expense plus (ii) the
Company’s scheduled payments of principal (including the principal component of
Capital Leases) to be paid during the 12 months following any date of
determination shall at all times exceed (1) 1.5 to 1.0.  Compliance with the ratio will be tested as
of the last day of each month, with Cash Flow and Interest Expense being
calculated for the twelve months then ended.

(iii)         Current Ratio.  The Company will at all times maintain a
Current Ratio of not less than 1.5 to 1.0. 
The Current Ratio shall be calculated and tested quarterly as of the
last day of each fiscal quarter of the Company.

(iv)         Actual versus Budget.  The Company shall
on a quarterly basis achieve 75 percent of its budgeted revenue and
income.  Budget numbers shall be those
delivered to Holder contemporaneously herewith and then on an annual calendar
basis.

Section 7.             Events of Default.

a)             “Event of Default”,
wherever used herein, means any one of the following events (whatever the
reason and whether it shall be voluntary or involuntary or effected by
operation of law or pursuant to any judgment, decree or order of any court, or
any order, rule or regulation of any administrative or governmental body):

i.              any default in the payment of (A)
the principal amount of any Debenture, or (B) interest (including Late Fees)
on, or liquidated damages in respect of, any Debenture, in each case free of
any claim of subordination, as and when the same shall become due and payable
(whether on the Maturity Date or by acceleration or otherwise);

ii.             the Company shall fail to observe
or perform any other covenant or agreement contained in this Debenture or any
of the other Transaction Documents which failure is not cured, if possible to
cure, within the earlier to occur of (A) 10 Business Days after notice of such
default sent by the Holder or by any other Holder and (B) 10 Business Days
after the Company shall become or should have become aware of such failure;

iii.            a default or event of default (subject
to any grace or cure period provided for in the applicable agreement, document
or instrument) shall occur under (A) any of the Transaction Documents or (B)
any other material agreement, 

 15
 

 

lease, document or
instrument to which the Company or any Subsidiary is bound and not cured;

iv.            any representation or warranty made
herein, in any other Transaction Documents, in any written statement pursuant
hereto or thereto, or in any other report, financial statement or certificate
made or delivered to the Holder or any other holder of Debentures shall be
untrue or incorrect in any material respect as of the date when made or deemed
made;

v.             there shall have occurred a
Bankruptcy Event;

vi.            the Company or any Subsidiary shall
default in any of its obligations under any mortgage, credit agreement or other
facility, indenture agreement, factoring agreement or other instrument under
which there may be issued, or by which there may be secured or evidenced any
indebtedness for borrowed money or money due under any long term leasing or
factoring arrangement of the Company in an amount exceeding $100,000, whether
such indebtedness now exists or shall hereafter be created and such default
shall result in such indebtedness becoming or being declared due and payable
prior to the date on which it would otherwise become due and payable.

vii.           the Company shall be a party to any
Change of Control Transaction or Fundamental Transaction, shall agree to sell
or dispose of all or in excess of 33% of its assets in one or more transactions
(whether or not such sale would constitute a Change of Control Transaction) or
shall redeem or repurchase any its outstanding shares of Common Stock or Common
Stock Equivalents;

viii.          the Company shall fail to have
available a sufficient number of authorized and unreserved shares of Common
Stock to issue to such Holder upon exercise of the Warrants in full and not
remedied as permitted in the Transaction Documents;

ix.            the Company shall redeem any of  the Common Stock Equivalents;

x.             upon the reasonable determination
by the Holder that there has been a Material Adverse Effect; or

xi.            the occurrence of an Activity Event
of Default (as defined in Section 5.1(f)(ii) of the Purchase Agreement).

b)            Remedies Upon Event of Default. If any Event of
Default occurs, the full principal amount of this Debenture, together with
interest and other amounts owing in 

 16
 

 

respect thereof, to the
date of acceleration shall become, at the Holder’s election, immediately due
and payable in cash.   Commencing 5 days
after the occurrence of any Event of Default that results in the eventual
acceleration of this Debenture, the interest rate on this Debenture shall
accrue at the rate of 18% per annum, or such lower maximum amount of interest
permitted to be charged under applicable law or regulation.  All Debentures for which the full principal
amount hereunder shall have been paid in accordance herewith shall promptly be
surrendered to or as directed by the Company. 
The Holder need not provide and the Company hereby waives any presentment,
demand, protest or other notice of any kind, and the Holder may immediately and
without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law.  Such declaration may be rescinded and
annulled by Holder at any time prior to payment hereunder and the Holder shall
have all rights as a Debenture holder until such time, if any, as the full
payment under this Section shall have been received by it.  No such rescission or annulment shall affect
any subsequent Event of Default or impair any right consequent thereon.

Section 8.             Miscellaneous.

a)             Notices. 
Any and all notices or other communications or deliveries to be provided
by the Holders hereunder shall be in writing and delivered personally, by
facsimile, sent by a nationally recognized overnight courier service, addressed
to the Company, at the address set forth above, facsimile number (281) 825-4955, Attn: Chief Executive Officer, 8708
Technology Forest Place, Suite 100, The Woodlands, Texas 77381, or such other address or facsimile number
as the Company may specify for such purposes by notice to the Holders delivered
in accordance with this Section.  Any and
all notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, sent by a
nationally recognized overnight courier service addressed to each Holder at the
facsimile number or address of such Holder appearing herein, or such other
address or facsimile number as such Holder may specify in accordance with this
Section.  Any notice or other
communication or deliveries hereunder shall be deemed given and effective on
the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this
Section prior to 5:30 p.m. (Dallas, Texas time), (ii) the date after the date
of transmission, if such notice or communication is delivered via facsimile at
the facsimile telephone number specified in this Section later than 5:30 p.m.
(Dallas, Texas time) on any date and earlier than 11:59 p.m. (Dallas, Texas
time) on such date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv)
upon actual receipt by the party to whom such notice is required to be given.

b)            Absolute Obligation. Except as expressly provided
herein, no provision of this Debenture shall alter or impair the obligation of
the Company, which is absolute and 

 17
 

 

unconditional, to pay the
principal of, interest and liquidated damages (if any) on, this Debenture at
the time, place, and rate, and in the coin or currency, herein prescribed.  This Debenture is a direct debt obligation of
the Company.  This Debenture ranks pari
passu with all other Debentures now or hereafter issued under the terms
set forth herein.

c)             Security Interest.  This Debenture is a direct debt obligation of
the Company and, pursuant to the Security Documents, is secured by a first
priority security interest in all of the assets of the Company and certain
other collateral for the benefit of the Holders.

d)            Lost or Mutilated Debenture.  If this Debenture shall be mutilated, lost,
stolen or destroyed, the Company shall execute and deliver, in exchange and
substitution for and upon cancellation of a mutilated Debenture, or in lieu of
or in substitution for a lost, stolen or destroyed Debenture, a new Debenture
for the principal amount of this Debenture so mutilated, lost, stolen or
destroyed but only upon receipt of evidence of such loss, theft or destruction
of such Debenture, and of the ownership hereof, and indemnity, if requested,
all reasonably satisfactory to the Company.

e)             Governing Law. 
All questions concerning the construction, validity, enforcement and
interpretation of this Debenture shall be governed by and construed and
enforced in accordance with the internal laws of the State of Texas, without
regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced in the state and federal courts sitting
in the City of Dallas, Texas (the “Dallas Courts”).  Each party hereto hereby irrevocably submits
to the exclusive jurisdiction of the Dallas Courts for the adjudication of any
dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the
enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, or
such Dallas Courts are improper or inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal
service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Debenture and agrees that such service
shall constitute good and sufficient service of process and notice
thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner
permitted by law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any
legal proceeding arising out of or relating to this Debenture or the
transactions contemplated hereby. If either party shall commence an 

 18
 

 

action or proceeding to
enforce any provisions of this Debenture, then the prevailing party in such
action or proceeding shall be reimbursed by the other party for its attorneys
fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

f)             Waiver. 
Any waiver by the Company or the Holder of a breach of any provision of
this Debenture shall not operate as or be construed to be a waiver of any other
breach of such provision or of any breach of any other provision of this
Debenture.  The failure of the Company or
the Holder to insist upon strict adherence to any term of this Debenture on one
or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term
of this Debenture.  Any waiver must be in
writing.

g)            Severability. 
If any provision of this Debenture is invalid, illegal or unenforceable,
the balance of this Debenture shall remain in effect, and if any provision is
inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances.  If it shall be found that any interest or
other amount deemed interest due hereunder violates applicable laws governing
usury, the applicable rate of interest due hereunder shall automatically be
lowered to equal the maximum permitted rate of interest. The Company covenants
(to the extent that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law or other law which would prohibit or
forgive the Company from paying all or any portion of the principal of or
interest on this Debenture as contemplated herein, wherever enacted, now or at
any time hereafter in force, or which may affect the covenants or the
performance of this indenture, and the Company (to the extent it may lawfully
do so) hereby expressly waives all benefits or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impeded
the execution of any power herein granted to the Holder, but will suffer and
permit the execution of every such as though no such law has been enacted.

h)            Next Business Day. 
Whenever any payment or other obligation hereunder shall be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day.

i)              Headings. 
The headings contained herein are for convenience only, do not constitute
a part of this Debenture and shall not be deemed to limit or affect any of the
provisions hereof.

j)              Usury.  To
the extent it may lawfully do so, the Company hereby agrees not to insist upon
or plead or in any manner whatsoever claim, and will resist any and all efforts
to be compelled to take the benefit or advantage of, usury laws wherever
enacted, 

 19
 

 

now or at any time
hereafter in force, in connection with any claim, action or proceeding that may
be brought by any Purchaser in order to enforce any right or remedy under any
Transaction Documents.  Notwithstanding
any provision to the contrary contained in any Transaction Documents, it is
expressly agreed and provided that the total liability of the Company under the
Transaction Documents for payments in the nature of interest shall not exceed
the Maximum Rate, and, without limiting the foregoing, in no event shall any
rate of interest or default interest, or both of them, when aggregated with any
other sums in the nature of interest that the Company may be obligated to pay
under the Transaction Documents exceed such Maximum Rate.  It is agreed that if the maximum contract
rate of interest allowed by law and applicable to the Transaction Documents is
increased or decreased by statute or any official governmental action
subsequent to the date hereof, the new maximum contract rate of interest
allowed by law will be the Maximum Rate applicable to the Transaction Documents
from the effective date of such increase or decrease forward, unless such
application is precluded by applicable law. 
If under any circumstances whatsoever, interest in excess of the Maximum
Rate is paid by the Company to any Purchaser with respect to indebtedness, if
any, evidenced by the Transaction Documents, such excess shall be applied by
such Purchaser to the unpaid principal balance of any such indebtedness or be
refunded to the Company, the manner of handling such excess to be at such
Purchaser’s election in the event any principal amount remains outstanding.

(k)  Amendment.  This Agreement may not be amended,
supplemented or modified, except by an agreement in writing signed by each of
the parties hereto.

[Signature Page Follows]

 

 20

 

IN
WITNESS WHEREOF, UniPixel and UniPixel Displays have caused
this Debenture to be duly executed by a duly authorized officer as of the date
first above indicated.

 

	
   

  	
  UNIPIXEL, INC.

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Reed Killion 

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNIPIXEL DISPLAYS, INC.

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Reed Killion

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  

 

 

 

 

EXHIBIT A

We,
the undersigned, hereby represent that UniPixel, Inc. and UniPixel Displays,
Inc. are in compliance with all of their respective covenants specified in
Sections 5 and 6 of that certain 12% Senior Secured Convertible Debenture
originally dated as of May 24, 2006, executed by such parties, each with their
principal place of business located at 8708 Technology Forest Place, Suite 100,
The Woodlands, Texas 77381, in favor of Trident Growth Fund, L.P., with its
principal place of business at 700 Gemini, Houston, Texas 77058.

	
  

  	
  UNIPIXEL, INC.

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UNIPIXEL DISPLAYS, INC.

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]