Document:

CONVERTIBLE DEBENTURE
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NEITHER THIS DEBENTURE NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS DEBENTURE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "ACT") OR UNDER THE SECURITIES LAWS OF ANY STATE. NEITHER
THIS DEBENTURE NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS
DEBENTURE MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE DEBENTURE OR SUCH
SHARES UNDER SUCH ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ION
NETWORKS, INC. THAT SUCH REGISTRATION IS NOT REQUIRED PURSUANT TO A VALID
EXEMPTION THEREFROM UNDER THE ACT.

                                  ION NETWORKS

                              CONVERTIBLE DEBENTURE

                                                                  August 5, 2004

$200,000.00

     1. Loan. In exchange for $200,000.00, receipt of which is hereby
acknowledged, the undersigned ION Networks, Inc., a Delaware corporation, with
its address at 120 Corporate Boulevard, South Plainfield, New Jersey 07080
(referred to herein as "Borrower"), promises to pay to the order of Stephen M.
Deixler, with an address at 371 Eagle Drive, Jupiter, Florida, 33477 ("Lender"),
the principal sum of $200,000.00, and interest from the date hereof on the
outstanding principal balance, at a rate equal to five (5%) percent per annum.
Interest shall be compounded at each twelve (12) month anniversary of the
issuance of this Note. The principal balance then outstanding under this
convertible debenture ("Debenture") plus accrued but unpaid interest shall be
paid in full on August 4, 2008 (the "Maturity Date"), subject to Borrower's
prepayment rights as set forth below.

     Notwithstanding any other provision hereof, interest paid or becoming due
hereunder shall in no event exceed the maximum rate permitted by applicable law.
All amounts due hereunder are payable in lawful money of the United States of
America to the Lender at the address above indicated, or as to any assignee of
Lender, at the address provided by such assignee.

     2. Conversion. (a) At any time from the date hereof through the date that
this Debenture is paid in full, Lender shall have the right, in its sole
discretion, to convert the outstanding principal in whole or in part (but if in
part, in increments of principal of no less than Ten Thousand ($10,000)
Dollars), into shares of Common Stock par value $.001 per share ("Common Stock")

<PAGE>

of the Borrower, at the Conversion Price per share, subject to adjustment as
described below. The Conversion Price shall be equal to the simple average of
the closing trading price (or if no trades occurred that day, the mean between
the high bid and low ask on such date) of the Borrower's Common Stock as
reported on the Yahoo finance page or comparable service (the "Closing Price")
over a ten (10) Trading Day period commencing on July 29,2004 until August 12,
2004, excluding closing date. A "Trading Day" shall mean any day on which the
Principal Market is open for business and (ii) "Principal Market" shall mean
initially the OTC Bulletin Board and shall include the American Stock Exchange,
Nasdaq National Market, the Nasdaq SmallCap Market, Bulletin Board or the New
York Stock Exchange if the Borrower is listed and its Common Stock trades on
such market or exchange. If the Borrower's Common Stock trades on more than one
market, the Principal Market shall be the market with the greatest trading
volume over the three-month period prior to the date or determination of any
event specified herein.

     (b) Lender may convert the above specified amount of this Debenture at the
then applicable Conversion Price by the surrender of this Debenture (properly
endorsed) at the principal office of the Borrower, or at such other agency or
office of the Borrower in the United States of America as the Borrower may
designate by notice in writing to the Lender at the address of Lender appearing
herein. Upon any conversion of this Debenture, there shall be executed and
issued to the Lender a new Debenture in respect of such outstanding amounts of
principal and accrued but unpaid interest hereunder as to which Lender shall not
have converted this Debenture, if any. In the event of the conversion of this
Debenture, a certificate or certificates for the securities so converted, as
applicable, registered in the name of the Lender, shall be delivered to the
Lender fifteen (15) days after the receipt by Borrower of this Debenture and
Lender's written request for conversion. Such certificate shall bear a legend
indicating the restricted nature of the securities issued comparable to the
legend on the first page of the Debenture.

     (c) The Borrower may at any time after August 5, 2005, at its option,
automatically convert the principal and accrued interest thereon of this
Debenture to shares of Common Stock, at the Conversion Price, if the Borrower's
per share Closing Price exceeds the Conversion Price multiplied by two (2) for
any twelve (12) Trading Days in any consecutive fifteen (15) Trading Day period.
If Borrower elects to automatically convert this Debenture, such conversion
shall be effective from the date the Borrower transmits a notice to Lender of
this election.

     (d) If the Borrower, at any time while this Debenture is outstanding, (A)
shall pay a stock dividend or otherwise make a distribution on shares of its
Common Stock, which dividend or distribution is payable in shares of Common
Stock, (B) subdivide outstanding shares of Common Stock into a larger number of
shares or (C) combine (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, then the Conversion
Price as then in effect shall be adjusted by multiplying it by a fraction, of
which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding before such event and of which the
denominator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding after such event.

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     (e) Any adjustment to the Conversion Price made pursuant to the adjustment
provisions of this Section 2 shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision or combination.

     (f) In case of any consolidation or merger of the Borrower with or into
another corporation or entity, or the conveyance of all or substantially all of
the assets of the Borrower to another corporation or entity, in either case
resulting in a conversion, extinguishment or exchange of the outstanding shares
of Common Stock, or any other reclassification of the Common Stock not described
above, this Debenture shall thereafter be convertible into the number of shares
of stock or other securities or property to which a holder of the number of
shares of Common Stock of the Borrower deliverable upon conversion of this
Debenture would have been entitled upon such consolidation, merger, conveyance
or reclassification; and, in any such case, appropriate adjustment shall be made
in the application of the provisions herein set forth with respect to the rights
and interest thereafter of the holder of this Debenture, to the end that the
provisions set forth herein shall be thereafter applicable, as nearly as
reasonably may be, in relation to any shares of stock or other property
thereafter deliverable upon the conversion of the Debenture.

     (g) This Debenture and any of the rights granted hereunder, and any of the
shares issuable upon conversion, are freely transferable by the Lender, in its
sole discretion, subject to federal and state securities law restrictions. In
the event of a transfer of the Debenture, in part, but not in whole, the
Borrower will issue a Debenture replacing that of the transferor, with respect
to the principal amount of the Debenture not transferred and shall issue a new
Debenture to the transferee representing the portion so transferred.

     (h) The Borrower covenants that it will at all times reserve and keep
available out of its authorized and unissued shares of Common Stock solely for
the purpose of issuance upon conversion of this Debenture, free from preemptive
rights or any other actual contingent purchase rights of persons other than the
Lender or subsequent Holders (as defined below), not less than such number of
shares of the Common Stock as shall be issuable upon the conversion of the
outstanding principal amount of this Debenture. The Borrower covenants that all
shares of Common Stock that shall be so issuable shall, upon issue, be duly and
validly authorized, issued and fully paid, nonassessable.

     (i) Upon conversion hereunder, the Borrower shall not be required to issue
stock certificates representing fractions of shares of the Common Stock, and in
lieu of any fractional shares which would otherwise be issuable, the Borrower
shall issue the next highest whole number of shares of Common Stock.

     (j) If (i) the Borrower shall declare a dividend (or any other
distribution) on the Common Stock; (ii) the Borrower shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock; (iii) the
Borrower shall authorize the granting to all holders of the Common Stock rights
or warrants to subscribe for or purchase any shares of capital stock of any
class or of any rights; (iv) the approval of any stockholders of the Borrower

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<PAGE>

shall be required in connection with any reclassification of the Common Stock,
any consolidation or merger to which the Borrower is a party, any sale or
transfer of all or substantially all of the assets of the Borrower, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; or (v) the Borrower shall authorize the voluntary
or involuntary dissolution, liquidation or winding up of the affairs of the
Borrower; then, in each case, the Borrower shall cause to be filed at each
office or agency maintained for the purpose of conversion of the Debenture, and
shall cause to be mailed to the Lender and any other Holder at its last address
as shall appear upon the debenture records of the Borrower, at least 10 calendar
days prior to the applicable record or effective date hereinafter specified, a
notice stating (i) the date on which a record is to be taken for the purpose of
such dividend, distribution, redemption, rights or warrants, or if a record is
not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distribution, redemption, rights or warrants
are to be determined, or (ii) the date on which such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up is expected to become effective or close, and the date as of which
it is expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
share exchange, dissolution, liquidation or winding up, provided, that the
failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice; provided further, that if any action is taken on written consent
in lieu of meeting, notice shall be made as soon as reasonably practicable
thereafter.

     (k) The issuance of certificates for shares of the Common Stock or other
securities on conversion of this Debenture shall be made without charge to the
Lender for any documentary stamp or similar taxes that may be payable in respect
of the issue or delivery of such certificate, provided that the Borrower shall
not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such certificate upon conversion in
a name other than that of the Lender and the Borrower shall not be required to
issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Borrower or its designee
the amount of such tax or shall have established to the satisfaction of the
Borrower that such tax has been paid.

     (l) Nothing herein shall limit any right granted to Lender by any other
instrument or document or by law or equity.

     3. Prepayment. Borrower may, at any time after August 5, 2005 and prior to
the Maturity Date, prepay the principal balance of this Debenture, in whole or
in part, provided, however, that such prepayment be made in increments of
principal of no less than Ten Thousand ($10,000) Dollars. Any such prepayment
shall be accompanied by accrued interest on any portion of the principal of the
Debenture being prepaid. Borrower shall exercise its right of prepayment by
mailing a notice to Lender of the amount of the Debenture being prepaid, 30 days
in advance of the intended prepayment, and by delivering a check representing
the appropriate consideration for the prepayment within 45 days after such
notice. No prepayment shall be permitted as to any principal amount for which
Lender has requested conversion under Section 2 above prior to the end of the
30-day period following the giving of the notice of prepayment by Borrower.

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<PAGE>

Prepayment shall require a premium on the outstanding principal balance being
repaid of (i) four (4%) percent, if prepayment is to be made on or prior to one
year from the date hereof and (ii) two (2%) percent, if prepayment is to be made
after one year from the date hereof and on or prior to two years from the date
hereof. No prepayment premium shall be required for prepayments to be made after
two (2) years from the date hereof.

     4. Events of Default. Each of the following events, if occurring while any
of the principal or interest of this Debenture remains unpaid, shall constitute
an "Event of Default" hereunder:

     (a) The Borrower shall fail to pay the principal or interest of this
Debenture or any other amounts payable to the Lender hereunder when due.

     (b) The Borrower shall commence, or there shall be commenced against the
Borrower a case under any applicable bankruptcy or insolvency laws as now or
hereafter in effect or any successor thereto, or the Borrower commences any
other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Borrower or
there is commenced against the Borrower any such bankruptcy, insolvency or other
proceeding which remains undismissed for a period of 60 days; or the Borrower is
adjudicated insolvent or bankrupt; or any order of relief or other order
approving any such case or proceeding is entered; or the Borrower suffers any
appointment of any custodian or the like for it or any substantial part of its
property which continues undischarged or unstayed for a period of 60 days; or
the Borrower makes a general assignment for the benefit of creditors; or the
Borrower shall fail to pay, or shall state that it is unable to pay, or shall be
unable to pay, its debts generally as they become due.

     (c) Immediately upon the occurrence of an Event of Default, at Lender's
option, (i) the Maturity Date shall be deemed to have occurred automatically and
(ii) the entire principal amount of this Debenture then outstanding, all other
amounts payable by the Borrower hereunder shall automatically become and be due
and payable, without presentment, demand, protest or any notice of any kind, all
of which are hereby expressly waived by the Borrower, anything herein to the
contrary notwithstanding. Upon the occurrence and during the continuation of an
Event of Default and the declaration of the Maturity Date, the Lender shall
have, in addition to all other rights and remedies under this Debenture and
related documents, all other rights and remedies provided under each applicable
jurisdiction and other applicable laws, which rights shall be cumulative.

     5. Notices. Any and all notices or other communications or deliveries to be
provided by the Lender hereunder shall be in writing and delivered personally,
by facsimile, sent by a nationally recognized overnight courier service or sent
by certified or registered mail, postage prepaid, addressed to the Borrower, at
the address set forth above, facsimile number: ___________, Attn: Chief
Executive Officer, or such other address or facsimile number as the Borrower may
specify for such purposes by notice to the Lender delivered in accordance with
this paragraph. Any and all notices or other communications or deliveries to be
provided by the Borrower hereunder shall be in writing and delivered personally,

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<PAGE>

by facsimile, sent by a nationally recognized overnight courier service or sent
by certified or registered mail, postage prepaid, addressed to the Lender (or
its assignee) at the address of the Lender (or such assignee) appearing on the
books of the Borrower, or if no such address appears, at the principal place of
business of the Lender. Any notice or other communication or deliveries
hereunder shall be deemed given and effective on the earliest of (i) the date of
transmission if delivered by hand or by telecopy that has been confirmed as
received by 5:00 P.M. on a business day, (ii) one business day after being sent
by nationally recognized overnight courier or received by telecopy after 5:00
P.M. on any day, or (iii) five business days after being sent by certified or
registered mail, postage and charges prepaid, return receipt requested.

     6. Registration of Conversion Shares. (a) If (but without any obligation to
do so) the Borrower proposes to register (including for this purpose a
registration effected by the Borrower for stockholders other than the Lender)
any of its stock or other securities under the Act in connection with the public
offering of such securities solely for cash (other than a registration statement
relating either to (i) the sale of securities to employees of the Borrower
pursuant to a stock option, stock purchase or similar plan, or (ii) a SEC Rule
145 transaction), the Borrower shall, at such time, promptly give the Lender and
its registered assigns of all or part of this Debenture (the Lender and each
such person, a "Holder") written notice of such proposed registration. Upon the
written request of a Holder given within twenty (20) days after mailing of such
notice by the Borrower in accordance with Section 5 hereof, the Borrower shall,
subject to the provisions of Section 8(c), endeavor to cause to be registered
for resale under the Act all of the shares of Common Stock issuable upon
conversion of the Debenture (the "Conversion Shares") that each such Holder has
requested to be registered.

     (b) Whenever required under this Section 6(a) to effect the registration of
any Conversion Shares, the Borrower shall, as expeditiously as reasonably
possible use reasonable efforts to (i) file a registration statement (the
"Registration Statement"), registering for resale the Conversion Shares and (ii)
cause the Registration Statement to be declared effective under the Securities
Act of 1933, as amended (the "Act") as soon thereafter as reasonably
practicable. The Borrower promptly shall provide each Holder with such copies of
the final prospectus contained in the Registration Statement after it becomes
effective as they shall reasonably request. In addition, the Borrower shall (a)
use reasonable efforts to keep the Registration Statement effective for a period
ending on the earlier of (x) one (1) year after the Maturity Date of this
Debenture or (y) when all such Conversion Shares can be sold without limitation
or delay under Rule 144, and (b) file all reports and forms required to be filed
by it under the Securities Exchange Act of 1934, as amended ("Reports") on a
timely basis so long as a Holder owns any Conversion Shares and shall provide
each Holder copies thereof when filed. The Borrower shall not be required to
effect a registration of the Conversion Shares if at the time of filing of a
Registration Statement, all such Conversion Shares can be sold without
limitation or delay under Rule 144.

     (c) Notwithstanding anything contained herein to the contrary, the Borrower
shall be entitled to postpone the filing of the Registration Statement otherwise
required to be prepared and filed by it in accordance with subparagraph (b) or,
in the event the Registration Statement has been declared effective, without
suspending such effectiveness, instruct the Holder promptly in writing not to
sell or distribute any Conversion Shares (a "Delay"), which instruction Holder
shall comply with, as long as the reason for non-disclosure continues, if the

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<PAGE>

Borrower would be required to disclose in the Registration Statement the
existence of any fact relating to a material business situation, transaction or
negotiation, or would be required to disclose information that the Borrower has
not otherwise made public, in each case, that the Borrower reasonably determines
is in the best interests of the Borrower not to disclose at such time, and
unless and until each Holder furnishes to the Borrower in writing information
that may be required to prepare the disclosure required by Items 507 and 508 of
Regulation S-B promulgated under the Act, with respect to such Holder's
Conversion Shares being sold under the Registration Statement; provided that,
with respect to Delays because of information related to the Borrower (rather
than disclosure required to be provided by the Holders), the Borrower shall only
be entitled to a maximum of three (3) Delays, each Delay not to exceed a period
of thirty (30) days; and further provided, that no period of Delay shall
commence within 60 days of a previous Delay.

     (d) Each Holder shall (i) reasonably cooperate with the Borrower in
connection with the preparation and filing of the Registration Statement and
execute and deliver any agreements or instruments reasonably requested by the
Borrower or its counsel in connection therewith and (ii) upon discovery that, or
upon the happening of any event as a result of which, the Registration Statement
(or any prospectus included therein), as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, in
the light of the circumstances under which they were made (as determined by the
Borrower or its counsel in its sole discretion), forthwith discontinue its
disposition of Conversion Shares pursuant to the Registration Statement, until
such time as such Holder have received a supplemented or amended prospectus from
the Borrower relating thereto. The Borrower agrees to use its best efforts to
prepare any necessary amendments or supplements to the Registration Statement as
soon as reasonably practicable after the same becomes necessary and to provide
to each Holder quantities of such amendments or supplements reasonably
sufficient for the distribution thereof.

     (e) The Borrower shall indemnify and hold harmless each Holder and its
respective officers, directors, employees, members, agents, affiliates and
control persons (each of the foregoing, a "Holder Indemnitee") who is or may be
a party or is or may be threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative by reason of or arising from any actual or alleged
misrepresentation or misstatement of facts or omission to represent or state any
fact or omission to state a fact necessary to make the facts stated under the
circumstances not materially misleading, in the Registration Statement or any
amendment or supplement thereto or to the prospectus incorporated therein from
and against any claim, losses, liabilities, costs and expenses (including
attorney's fees, judgments, fines and amounts paid in settlement) ("Loss")
actually and reasonably incurred by any such Holder Indemnitee in connection
with such claim, action, suit or proceeding or the defense thereof, except to
the extent such Loss is the direct result of a misstatement or omission for
which such Holder Indemnitee is liable to the Borrower under Section 7(h);

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<PAGE>

provided, however, that the indemnification contained in this Section 6(e) with
respect to any preliminary prospectus shall inure to the benefit of any Holder
Indemnitee on account of any such Loss arising from the sale of the Conversion
Shares by such Holder Indemnitee to any person if a copy of the definitive
prospectus shall have been delivered or sent to such person within the time
required by the Act and the regulations thereunder, and an untrue statement or
alleged untrue statement or omission or alleged omission of a material fact
contained in such preliminary prospectus was corrected in the definitive
prospectus.

     (f) In connection with any offering involving an underwriting of shares of
the Borrower's capital stock, the Borrower shall not be required under Section
8(a) to include any of the Holders' Conversion Shares in such underwriting
unless they accept the terms of the underwriting as agreed upon between the
Borrower and the underwriters selected by it (or by other persons entitled to
select the underwriters), and then only in such quantity as the underwriters
determine in their sole discretion will not jeopardize the success of the
offering by the Borrower. If the total amount of securities, including
Conversion Shares, requested by stockholders to be included in such offering
exceeds the amount of securities sold other than by the Borrower that the
underwriters determine in their sole discretion is compatible with the success
of the offering, then the Borrower shall be required to include in the offering
only that number of such securities, including Conversion Shares, which the
underwriters determine in their sole discretion will not jeopardize the success
of the offering (the securities so included to be apportioned pro rata among the
selling stockholders according to the total amount of securities entitled to be
included therein owned by each selling stockholder or in such other proportions
as shall mutually be agreed to by such selling stockholders).

     7. Representations of Lender and Holders. The Lender and each subsequent
Holder acknowledges that the Borrower will rely on the information and on the
representations set forth herein, and the Lender and as applicable, each
subsequent Holder, hereby represents, warrants and agrees that:

     (a) The Lender is an "Accredited Investor", as that term is defined under
Section 501(a) of Regulation D under the Act, by virtue of the fact that the
Lender is a director of the Borrower.

     (b) The Lender has not received any general solicitation or general
advertising regarding the purchase of the Debenture.

     (c) The Lender has sufficient knowledge and experience in financial and
business matters so that he or it is able to evaluate the merits and risks of
purchasing the Debenture as well as substantial experience in previous private
and public purchases of securities.

     (d) The Holder understands that an investment in the Borrower involves
significant risk. The Holder does not require the funds to be used to purchase
this Debenture for his liquidity or other needs, possesses the ability to bear
the economic risk of holding the this Debenture or the Conversion Shares
purchased hereunder indefinitely and can afford a complete loss of its
investment in the this Debenture or the Conversion Shares.

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<PAGE>

     (e) Prior to the issuance of this Debenture, the Lender, and prior to
conversion, the Holder, has or will have had full opportunity to ask questions
of and receive answers from the Borrower and its officers and authorized
representatives regarding the terms and conditions of the Debenture and the
transactions contemplated hereby, as well as the affairs of the Borrower and
related matters. The Holder confirms that he does not desire to receive any
further information.

     (f) The Holder understands that the Debenture has not been filed with or
reviewed by the Commission nor the securities department of any state because of
the private or limited nature of this offering as defined by applicable laws,
and that the Debenture and the Conversion Shares have not been registered with
the Commission under the Act nor with the securities department of any state in
reliance upon an exemption therefrom for non-public offerings.

     (g) The Holder represents and warrants that the Debenture and the
Conversion Shares are or will be acquired for investment purposes and not with a
view to or for sale or distribution. The Holder represents that, upon
acquisition of the Debenture and the Conversion Shares, there is no contract,
undertaking, agreement or arrangement with any person to sell, transfer or
pledge to such person or anyone else the Debenture and the Conversion Shares or
any part thereof, and the Holder, upon acquisition of the Debenture and the
Conversion Shares, has no present plans to enter into such contract,
undertaking, agreement or arrangement and will neither directly or indirectly
seek to assign, transfer or sell the same in any way inconsistent with the
legend which is being placed on the Debenture and the Conversion Shares.

     (h) Each Holder agrees to indemnify and hold harmless the Borrower and each
officer, director, employee, agent or control person of the Borrower, who is or
may be a party or is or may be threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, to the extent by reason of or arising from any
misrepresentation or misstatement of material facts or omission to state
material facts necessary to make the facts stated, under the circumstances, not
materially misleading, made or omitted by such Holder to the Borrower in a
writing provided to the Borrower expressly for the purpose of inclusion in the
Registration Statement or any amendment thereto, against losses, liabilities and
expenses for which the Borrower, or any officer, director or control person of
the Borrower has not otherwise been reimbursed (including attorneys' fees,
judgments, fines and amounts paid in settlement) actually and reasonably
incurred by the Borrower or such officer, director or control person in
connection with such action, suit or proceeding.

     8. Amendments and Waivers. Any provision of this Debenture may be modified
and compliance with any of the provisions hereof may be waived only with the
written consent of the Lender and Borrower. If the Debenture has been assigned
in whole or in part, each Debenture outstanding may be modified and compliance
with any provision waived, only with the written consent of the Borrower and the
Holder of such Debenture.

     9. Governing Law. This Debenture and the provisions hereof are to be
construed according to and are governed by the laws of the State of Delaware,
other than those which would defer to the substantive laws of another
jurisdiction. Any dispute arising hereunder shall be subject to adjudication
solely in the federal and state courts of the State of New Jersey in __________
County. The Borrower and each Holder hereby consent to the exclusive
jurisdiction of such courts, waiving any claim of inconvenient forum.

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<PAGE>

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

                                     ION NETWORKS, INC.

                                     By:
                                        ------------------------------
                                     Name:    Norman Corn
                                     Title:   Chief Executive Officer

Lender:

__________________________
Steven M. Deixler

                                       10EMPLOYMENT AND NON-COMPETITION AGREEMENT

     This Employment and Non-Competition Agreement (this "Agreement") is entered
into as of the 1st day of July, 2004 (the "Effective Date"), between AMEN
PROPERTIES, INC., a Delaware corporation (together with any subsidiary of such
corporation employing Employee at any time during the term hereof, the
"Company"), and KEVIN YUNG (the "Employee"), with reference to the following
facts:

     A. The Employee has substantial management and other skills and experience
in the retail electric provider ("REP") business.

     B. It is the desire of the Company to employ the Employee on the terms
herein provided and to induce the Employee to provide his services to the
Company.

     C. The Employee is desirous of committing himself to serve the Company on
the terms and in the capacities herein provided.

     NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereto agree as follows:

     1. Employment. Subject to the terms hereof, the Company hereby agrees to
employ the Employee, and the Employee hereby agrees to serve the Company for the
period commencing on the Effective Date and expiring on the third anniversary of
the Effective Date; provided, however, that the term of this Agreement shall
automatically be renewed and extended for successive one (1) year periods unless
at least thirty (30) but not more than ninety (90) days prior to the end of the
term or any renewal term of this Agreement, either party shall have given
written notice that it is terminating this Agreement. Employee acknowledges and
agrees that such employment may be with Amen Properties, Inc. or any of its
subsidiaries at the discretion of the Company.

     2. Position and Duties. The Employee shall serve in the following manner:

     (a) The Employee shall have supervisory responsibility for certain
management and operational functions of Company related to the Company's REP
business, and shall have such other powers and duties as may from time to time
be prescribed by the Board of Directors of Amen Properties, Inc. (the "Board")
or the President of Amen Properties, Inc. (the "President").

     (b) During the term of this Agreement, Employee shall devote his full time,
skill and attention and his best efforts to the businesses and affairs of the
Company to the extent necessary to discharge faithfully and efficiently his
duties and responsibilities described herein, except for usual, ordinary and
customary periods of vacation (as provided in Section 4(e) below) and absence
due to illness or other disability or such periods of leave as are approved in
writing by the Board or the President. The provisions of this clause shall not
be construed to prevent Employee from making investments in other businesses or
enterprises, so long as such investments do not violate the Company's conflict
of interest policies or Section 5 hereof.

                                       1
<PAGE>

     3. Place of Performance. In connection with his employment under this
Agreement, the Employee shall be based at the Company's offices in Midland,
Texas. The Company shall provide without cost to the Employee such office space,
secretarial and administrative services, equipment, furniture and furnishings as
are suitable and appropriate to Employee's position and duties.

     4. Compensation and Related Matters.

     (a) Base Salary. The Employee shall receive a base salary ("Base Salary")
paid by Company at the annualized rate of $150,000, less appropriate deductions,
during each calendar year of the term hereof, payable in substantially equally
bi-monthly payments, subject to adjustment by the Board on an annual basis.

     (b) Bonus. In addition to the Base Salary, the Employee shall be eligible
for an annual bonus for each completed fiscal year of the Company during the
term hereof (the "Bonus"). The amount of each Bonus shall be equal to
twenty-five percent (25%) of any increase for that fiscal year in the
consolidated stockholder equity of Amen Properties, Inc. directly attributed to
the financial results of the Company's REP business as determined by the
Company's independent accountants in accordance with generally accepted
accounting principles; provided, that if there is a decrease for any fiscal year
in such consolidated stockholder equity, the amount of such decrease shall be
subtracted from any increase in any subsequent fiscal year and the Bonus for
such subsequent fiscal year(s) shall be calculated based upon the net increase,
if any, after subtracting the amount of such decrease. Such Bonuses shall be
paid within forty-five (45) days of the end of each fiscal year of the Company,
and may be paid, at the Employee's option upon written notice to the Company,
either in cash or in shares of the Company's Common Stock, $.01 par value, of
Amen Properties, Inc. (the "Company Common Stock"), having a Market Value (as
defined below) equal to the amount of the payment due, or a combination thereof;
provided, that the Company shall have the option to pay the Bonus, or any
portion thereof, in cash notwithstanding the Employee's election of payment in
shares of Company Common Stock if the Company has a good faith belief that the
issuance of such shares may cause the Company to risk the loss of any of its net
operating loss carryforward under the Internal Revenue Code and applicable
Treasury Regulations. As used herein, (i) "Market Value" shall be $3.20 per
share for the fiscal year ended December 31, 2004 and thereafter shall be
calculated using a price per share equal to the average closing price for the
Company Common Stock on the Nasdaq Stock Market (or other exchange or securities
quotation service on which the Company Common Stock is Publicly Traded) for
twenty (20) trading days prior to the date of issuance of the shares as payment
required by this Section 4(b), and (ii) "Publicly Traded" means a security that
is listed or admitted to unlisted trading privileges on a national securities
exchange or designated as a national market system security on an interdealer
quotation system by the National Association of Securities Dealers, Inc.
("NASD") or if sales or bid and offer quotations are reported for that class of
stock in the automated quotation system operated by the NASD. The Employee

                                       2
<PAGE>

acknowledges and agrees that the Company will not be required to register under
applicable securities laws any shares of Company Common Stock issued to him
under this Agreement, that, if unregistered, the transfer of such stock will be
restricted under applicable securities laws, and that he understands and accepts
all risks associated with owning shares of Company Common Stock, including
without limitation those related to such restrictions on transfer.

     Expenses. During the term of his employment hereunder, the Employee shall
be entitled to receive prompt reimbursement for all reasonable and necessary
expenses incurred by him in performing services hereunder, provided that the
Employee properly accounts therefore in accordance with Company policy. Company
acknowledges that Employee resides in Flower Mound, Texas and will initially be
commuting to Midland, and the transportation expense for the commute are fully
reimbursable, as are temporary lodging (e.g. hotels/motels) expenses. At his
sole option, Employee may choose to lease or rent an apartment or similar
lodging arrangements in or nearby Midland, Texas, and also from time-to-time may
elect to perform his duties working from an office located in the Dallas/Fort
Worth Metroplex so long as it does not diminish Employee's obligation to perform
the duties set forth in Section 2. As such, the Company agrees it will either
reimburse Employee or directly pay for the expenses associated with maintaining
a Dallas/Fort Worth Metroplex office and/or Midland area lodging, inclusive of
all rents and utilities, so long as the total sum of all these expenses does not
exceed $2,000/month, and Employee maintains records and receipts of such
expenses.

     (c) Other Benefits. During the term of the Employee's employment hereunder
(i) the Employee shall be entitled to participate in or receive benefits under
any employee benefit plan or other arrangement made available by the Company,
now or in the future, to its officers and key management employees or other
employees, and subject to and on a basis consistent with the terms, conditions,
and overall administration of such plan or arrangement; provided, that the
Company shall not be required to make any such benefits available, and (ii) the
Company shall not make any changes in any employee benefit plans or other
arrangements in effect on the date hereof or subsequently in effect in which the
Employee participates that would adversely affect the Employee's rights or
benefits thereunder, unless such change occurs pursuant to a program applicable
to executive officers, key management and other employees of the Company, as
applicable, and does not result in a proportionately greater reduction in the
rights of or benefits to the Employee as compared with any other employee of the
Company.

     (d) Vacations. The Employee shall be entitled to four (4) weeks of paid
vacation in each year hereof. The Employee shall also be entitled to all paid
holidays given by Company to its employees. Vacation time not used during a year
shall not accrue or be useable in any succeeding year and shall not be paid.

     (e) Proration. Any payments or benefits to which the Employee may be
entitled under this Section 4 in respect of any year during which the Employee
is employed by Company for less than the entire such year shall, unless
otherwise provided in the applicable plan or arrangement, be prorated in
accordance with the number of days in such year during which he is so employed.

                                       3
<PAGE>

     5. Non-Compete. During the term of this Agreement and for a period of
eighteen (18) months after the termination of this Agreement, the Employee
agrees that he will not, directly or indirectly,

     (a) engage or invest in, own, manage, operate, finance, control, or
participate in the ownership, management, operation, financing, or control of,
be employed by, associated with, or in any manner connected with, lend the
Employee's name or any similar name to, lend Employee's credit to or render
services or advice to, any business or other entity engaging in any REP
operations in Texas; provided, that the Employee shall not be prohibited from
the following:

     (i) the purchase or other acquisition of up to (but not more than) two
percent of any class of securities of any enterprise (but without otherwise
participating in the activities of such enterprise), other than of the Company,
if such securities are listed on any national or regional securities exchange or
have been registered under Section 12(g) of the Securities Exchange Act of 1934;

     (ii) working for an electricity aggregator, broker, or other non-REP entity
whose primary business is not the retail sale of electricity to end-use
consumers in Texas;

     (iii) working for a company which has REP operations in Texas and other
domestic or international markets, so long as Employee is in no way involved
with any of the Texas REP operations;

     (iv) working for any wholesale electricity trading, generating, or
independent power production company; and

     (v) working for any municipal or cooperative utility in Texas which has not
opted to compete within the deregulated Texas electricity marketplace.

     (b) except on behalf of the Company, solicit business from any person known
by the Employee to be a customer of the Company, whether or not the Employee had
personal contact with such person during and by reason of the Employee's
employment with the Company;

     (c) solicit, employ, or otherwise engage as an employee, independent
contractor, or otherwise, any person who is or was an employee of the Company at
any time during the term of this Agreement or in any manner induce or attempt to
induce any employee of the Company to terminate his or her employment with the
Company;

     (d) interfere with the Company's relationship with any person, including
any person who at any time during the term of this Agreement was an employee,
contractor, supplier, or customer of the Company; or

     (e) disparage the Company or any of its shareholders, directors, officers
or other employees.

                                       4
<PAGE>

This Section 5 shall remain in effect notwithstanding the termination of
this Agreement or of Employee's employment with the Company. The Employee agrees
and stipulates that: (i) the provisions of this Section 5 are ancillary to and a
part of an otherwise enforceable agreement, (ii) the limitations as to time,
geographic area, and scope of activity to be restrained under this Section 5 are
reasonable and do not impose a greater restraint than is necessary to protect
the goodwill or other business interest of the Company; and (iii) this Section 5
is intended to comply in all respects with ss.ss. 15.50 et seq. of the Texas
Business and Commerce Code. If, however, this Section 5 is determined by a court
to competent jurisdiction to contain limitations as to time, geographic area or
scope of activity to be restrained that are not reasonable and impose a greater
restraint than is necessary to protect the goodwill or other business interest
of the Company, or to otherwise be unenforceable to any extent or for any
reason, the Employee consents to the reformation of this Section 5 by such court
to the minimum extent necessary to cause the limitations contained in this
Section 5 to be deemed reasonable and to impose a restraint that is not greater
than necessary to protect the goodwill or other business interest of the
Company, and to otherwise be enforceable, and to the enforcement of this Section
5 as so reformed. For purposes of any such reformation, the provisions of this
Section 5 shall be divisible.

     6. Unauthorized Disclosure.

     (a) Confidential Information. Employee hereby acknowledges that, in
connection with his employment by Company and his association with the Company,
he will be exposed to and may obtain certain confidential or proprietary
information regarding the business and affairs of the Company ("Confidential
Information"). Employee further acknowledges that such Confidential Information
is valuable and deemed proprietary by the Company. Confidential Information
shall not include information generally available to the public or known to
Employee prior to his employment by the Company.

     (b) Non-Disclosure. During the period of his employment hereunder and for
any period mandated by Section 5 hereof, Employee shall not, without the written
consent of the Board or a person authorized thereby, use or disclose to any
person any Confidential Information obtained by him with respect to any matter
concerning the Company's business or operations; except that the Employee shall
not be required to keep confidential any such Confidential Information, and may
disclose such Confidential Information, under the following circumstances:

     (i) the Employee may disclose such Confidential Information to another
employee of Company or to representatives or agents of Company (such as
independent accountants and legal counsel) when such disclosure is reasonably
necessary or appropriate in connection with the performance by the Employee of
his duties;

     (ii) at the express direction of any authorized governmental entity;

     (iii) pursuant to a subpoena or other court process; or

                                       5
<PAGE>

     (iv) as otherwise required by law or the rules, regulations, or orders of
any applicable regulatory body;

     provided, that in the instances covered by (ii), (iii) and (iv) above, the
Employee shall promptly notify the Company prior to any disclosure and provide
the Company with an opportunity to defend said disclosure.

     (c) Enforcement. The Employee recognizes that his unauthorized disclosure
of Confidential Information may give rise to irreparable injury to the Company,
and acknowledges that remedies other than injunctive relief may not be adequate.
Accordingly, the Company has the right in addition to other remedies (without
the necessity to post bond or other collateral) to equitable and injunctive
relief to prevent the unauthorized use or disclosure of any Confidential
Information, as well as to such damages or other relief as is occasioned by such
unauthorized use or disclosure. The Employee immediately shall notify Company if
he learns of any unauthorized use or disclosure of any Confidential Information.
The Employee also will fully cooperate in any attempt by Company to obtain any
remedy or relief, which cooperation shall be at Company's expense unless such
unauthorized use or disclosure is the result of the Employee's breach of this
Agreement. The Employee's compliance with this Section 6(c) is not a waiver of
Company's right to recover damages or obtain other relief from the Employee as
to the unauthorized use or disclosure of any Confidential Information.

     7. Termination.

     (a) The Employee's employment hereunder may be terminated by Company or the
Employee, as applicable, without any breach of this Agreement, only under the
following circumstances:

     (i) Death. The Employee's employment hereunder shall terminate upon his
death.

     (ii) Disability. If, as a result of the Employee's incapacity due to
physical or mental illness, the Employee shall have been absent from his duties
hereunder on a full time basis for 120 consecutive calendar days, or 180 days
during any twelve month period, the Company may terminate the Employee's
employment hereunder immediately.

     (iii) Cause. The Company may terminate the Employee's employment hereunder
immediately for Cause. For purposes of this Agreement, the Company shall have
"Cause" to terminate the Employee's employment hereunder only in the event the
Employee has:

     (A) committed an intentional act of fraud, embezzlement or theft in
connection with his duties or in the course of his employment with the Company;

     (B) engaged in misconduct that is materially injurious to the Company;

                                       6
<PAGE>

     (C) been convicted of a felony under the laws of the State of Texas;

     (D) violated the provisions of Section 5 or Section 6 hereof, or

     (E) intentionally failed or refused to substantially follow the lawful and
proper directives of the Board or the President, or failed to perform his duties
hereunder.

     (iv) Termination by Company other than for Cause. The Company may terminate
the Employee's employment hereunder for any reason other than for Cause only
upon giving the Employee thirty (30) days' written notice prior to the date of
termination.

     (v) Termination by Company based upon Performance. The Company may
terminate the Employee's employment hereunder on or within sixty (60) days after
the second anniversary of the Effective Date in the event the Company's REP
business has not satisfied the performance criteria set forth on Exhibit A
attached hereto and made a part hereof for all purposes.

     (vi) Termination by the Employee for Good Reason. At his option, the
Employee may terminate his employment hereunder for any of the following reasons
regardless of the then-remaining term of this Agreement upon thirty (30) days'
written notice to the Company: (i) a material change in the nature or scope of
the Employee's functions, duties, or responsibilities, without the consent of
Employee; (ii) any relocation of the Employee without the Employee's consent;
(iii) a reduction in Base Salary of more than ten percent (10%) in any single
year; or (iv) any material breach of this Agreement by the Company.

     (vii) Termination by Employee upon Change of Control. At his option, the
Employee may terminate his employment hereunder for reason of Change of Control
of the Company or REP for which Employee works. For the purposes of this
Agreement, a "Change of Control" of the Company or REP shall be deemed to have
taken place if one or more of the following occurs:

     (A) Any person or entity, as that term is used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, (other than a qualified benefit
plan of the Company or an affiliate of the Company) becomes or is discovered to
be a beneficial owner (as defined in Rule 13d-3 under the Exchange Act as in
effect on the date hereof) directly or indirectly of securities of the Company
representing 60% or more of the combined voting power of the Company's then
outstanding securities (unless such person is the Employee, a beneficial owner
of securities of the Company identified in any of the Company's filings with the
Securities and Exchange Commission as of the date of this Agreement, an officer
or director of the Company as of the date of this Agreement, or any entity owned
or controlled by any of the foregoing;

                                       7
<PAGE>

     (B) The Company or any of its affiliates shall (in a single transaction or
a series of related transactions) issue voting securities, sell or purchase
assets, engage in a merger or engage in any other transaction immediately after
which securities of the Company representing 60% or more of the combined voting
power of the then outstanding securities of the Company shall be owned by
person(s) who shall not have owned any securities of the Company prior to such
transaction;

     (C) The Company and its affiliates shall (in a single transaction or a
series of related transactions) sell or dispose of business operations which
generated a majority of the revenues of the REP and its subsidiaries immediately
prior thereto, except for a disposition to the Company or its subsidiaries; or

     (D) The Company's Board of Directors shall approve the distribution to the
REP's owners of all or substantially all of the REP's net assets or shall
approve the dissolution of the REP, except any such distribution to the Company
or its subsidiaries and any related dissolution.

     (viii) Other Termination by the Employee. The Employee may, at his option,
terminate his employment hereunder for any reason other than those specified in
Section 7(a)(v) upon ninety (90) days' written notice to the Company.

     (ix) Expiration of Term. Either party may terminate the Employee's
employment by giving notice thereof at the expiration of the initial term or any
renewal term of this Agreement as provided in Section 1.

     (b) Compensation Upon Termination. In the event of any termination of this
Agreement, the Company shall pay to the Employee all Base Salary owed hereunder
through the date of termination and Employee shall be entitled to all benefits,
rights and privileges of Employee under any and all employee benefit plans or
policies of the Company to which terminated employees of the Company are
entitled. Additionally, in the event of "Termination by Company other than for
Cause," "Termination by the Employee for Good Reason," or "Termination by
Employee upon Change in Control," Company shall continue to pay Employee's Base
Salary at either the rate set forth in Section 4 (a), or Employee's then current
Base Salary rate, whichever is higher, for a period of time equal to the greater
of twelve (12) months or the period of time set forth in Section 5 - "Non
Compete"--during which Employee cannot work for another REP in the Texas market.

     8. Inventions. Employee will disclose in writing to Company all inventions,
designs, improvements, processes, formulas, know-how and original works of
authorship which relate to or are in connection with the business of the Company
that (i) he creates while he is an employee of the Company, (ii) he creates
while performing work relating to the business of the Company, or (iii) result
from his use of Company's time, materials or facilities. He further acknowledges
and agrees that all original works of authorship which relate to or are in
connection with the business of the Company made by him while under Company's
employ are works made for hire and that the Company owns all the copyrights and
intellectual property rights to such works. And to the extent any such work is
not a work made for hire, he hereby agrees to assign and does hereby assign to
the Company his entire right, title and interest in the copyright to any such
works.

                                       8
<PAGE>

     9. Successors; Binding Agreement. This Agreement shall be binding upon, and
inure to the benefit of the Company, the Employee, and their respective
successors, assigns, personal and legal representatives, executors,
administrators, heirs, distributees, devisees, and legatees, as applicable;
provided, that the Employee shall not assign this Agreement or any portion
hereof.

     10. Notice. For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when (a) delivered personally; (b) sent by
telecopy or similar electronic device and confirmed; (c) delivered by commercial
overnight express; or (d) sent by registered or certified mail, postage prepaid,
addressed as follows:

                  If to the Employee (marked "Personal and Confidential"):

                           Kevin Yung

                           ------------------------

                           ------------------------

                           ------------------------

                  If to Company:

                           Amen Properties, Inc.
                           Attn:  Jon M. Morgan
                           303 W. Wall, Suite 1700
                           Midland, Texas 79701

or to such other address as any party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

     11. Miscellaneous. No provision of this Agreement may be amended, modified,
waived or discharged unless such amendment, waiver, modification or discharge is
agreed to in writing signed by the Employee and Company. No waiver by either
party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement.

     12. Governing Law. THIS AGREEMENT IS BEING MADE AND EXECUTED IN AND IS
INTENDED TO BE PERFORMED IN THE STATE OF TEXAS, AND SHALL BE GOVERNED,
CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF
THE STATE OF TEXAS.

                                       9
<PAGE>

     13. Attorney Fees. The prevailing party may be awarded legal fees and costs
in connection with resolution of any dispute or controversy under or in
connection with this Agreement.

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

     15. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed to be an original, but all of which together will
constitute one and the same agreement.

                  [Remainder of Page Intentionally Left Blank]

                                       10
<PAGE>

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

                                     AMEN PROPERTIES, INC.

                                     By:      /s/ Jon M. Morgan
                                        ----------------------------------------
                                              Jon M. Morgan, President

                                     EMPLOYEE:

                                              /s/ Kevin Yung
                                     -------------------------------------------
                                     KEVIN YUNG

                                       11

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