Document:

Exhibit
                10.1

            

    

     

    
      AGREEMENT
        AND RELEASE

      

      CONSULT
        WITH AN ATTORNEY BEFORE SIGNING THIS AGREEMENT AND RELEASE. BY SIGNING THIS
        AGREEMENT AND RELEASE, YOU GIVE UP AND WAIVE IMPORTANT LEGAL
        RIGHTS.

      

      This
        is
        an agreement and release (the “Agreement”)
        between NanoSensors, Inc., its stockholders (solely in their capacity as
        stockholders of NanoSensors, Inc.), affiliates, divisions, successors and
        assigns, their respective past and present officers, directors, employees,
        agents, attorneys, whether as individuals or in their official capacity,
        and
        each of their respective successors and assigns (hereinafter collectively
        referred to as “NanoSensors”
or
        the
“Company”)
        and by
        his own free will, Ted L. Wong (“Wong”
or
        “Employee”).
        As
        used herein, the term “Execution
        Date”
shall
        mean the later of the two dates on which this Agreement has been executed
        by
        Employee and NanoSensors, as specified on the signature page of this Agreement.
        

      

      WHEREAS,
        Wong
        has been an employee of NanoSensors and has served as its Chief Executive
        Officer, President and Chief Financial Officer, and

      

      WHEREAS,
        Wong
        has been employed pursuant to a written employment agreement dated as of
        August
        3, 2006 (the “Employment
        Agreement”);
        and

      

      WHEREAS,
        Employee and NanoSensors each desire an amicable cessation of the employment
        relationship,

      

      NOW,
        THEREFORE,
        in
        consideration of the covenants and promises contained herein and for other
        good
        and valuable consideration, receipt of which is hereby acknowledged, Employee
        and NanoSensors (who hereinafter collectively may be referred to as the
“Parties”)
        hereby
        agree as follows:

      

      1. Termination
        of Employment; Resignation from Board:
        Employee
        acknowledges and agrees that effective the close of business on August 31,
        2007
        (the “Termination
        Date”),
        Employee’s employment in all capacities with the Company is terminated and the
        Employment Agreement is terminated effective as of the Termination Date.
        Further, effective on the Termination Date, Employee hereby resigns as Chairman
        of the Board of Directors of the Company.

      

      2. Severance
        Payment:
        In
        consideration for Employee’s execution of this Agreement, and in consideration
        for the release of claims against NanoSensors, the Company will pay or provide
        to Employee the following:

      

      a. Solely
        for the purpose of determining the benefits under Section
        2.3
        of the
        Employment Agreement, Employee’s termination shall be deemed a termination
        without cause within the contemplation of such section of the Employment
        Agreement. 

      

      b. An
        aggregate amount of Seventy-Two Thousand and 00/100 ($72,000.00) Dollars
        (the
“Severance
        Payment”),
        payable in equal and consecutive and monthly installments over a period of
        six
        months on each of the Company’s regular pay dates for executives, commencing on
        the first regular executive pay date following the Termination Date, but
        in no
        event prior to the expiration of the seven-day revocation period (the
“Revocation
        Period”)
        described on the signature page of this Agreement. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      c. In
        accordance with Section
        5.9
        of the
        Employment Agreement, the conditions to the vesting of any unvested and
        outstanding stock options granted to the Employee under any of the Company’s
        stock option plans, shall be deemed fully satisfied and all such incentive
        awards shall be immediately and fully vested as of the Termination Date.
        In
        addition, the terms of all outstanding stock options held by Employee as
        of the
        Termination Date shall be deemed amended to provide that the awards shall
        remain
        exercisable for a period of two years following the Termination Date. Attached
        as Exhibit
        “A”
        is a
        list of options covered by this provision. 

      

      d. In
        further consideration of Employee’s services to the Company during the term of
        the Employment Agreement, the Company agrees to issue to Employee such number
        of
        shares of the Company’s common stock with a fair market value equal to $6,250 on
        the Termination Date. The Company shall cause such additional shares of common
        stock to be issued to the Employee (to the address specified in Section 25
        of
        this Agreement) on the first business day following the expiration of the
        Revocation Period. No other bonus or additional amount shall be due or owing
        by
        the Company to Employee. As used herein, the term “fair market value” shall mean
        the average of the closing price of the Company’s common stock as reported on
        the OTC Bulletin Board for the five (5) trading days prior to the date of
        determination of fair market value. 

      

      e. The
        Company agrees that Employee shall be entitled to retain the following items
        of
        company property which currently in the Company’s leased premises located at
        1800 Wyatt Drive, Suite # 2, Santa Clara, California: one laptop computer,
        telephone hardware, printer, facsimile machine and the furniture and filing
        cabinets presently located on the premises. Company will allow Employee to
        retain the laptop computer after the Termination Date only upon the Company’s
        satisfaction that Employee has deleted and permanently purged all Company
        related files and data from such laptop computer (Employee agrees that the
        Company reserves the right to inspect such laptop computer to ensure compliance
        with this requirement).Other than the foregoing, Employee shall comply with
        the
        provisions of Section
        21
        of this
        Agreement and return to the Company all other Company property in his possession
        or custody or under his control.

      

      f. Employee
        agrees and acknowledges that the Company’s payment of the compensation described
        in Sections
        2(a) - 2(e)
        of this
        Agreement is in lieu of all other compensation to which Employee may have
        been
        entitled pursuant to the Employment Agreement.

      

      3. Benefits:
        On
        the
        first regular executive pay date following the Termination Date, the Company
        shall pay the Employee an amount of Five Thousand One Hundred Twenty Five
        and
        00/100 ($5,125). Dollars for unused vacation time in accordance with the
        Company’s current policy. Except as provided in the immediately preceding
        sentence, effective as of the Termination Date, (i) the Company shall have
        no
        obligation to continue Employee’s enrollment or participation in any benefit
        plans or programs and (ii) Employee shall not be entitled to participate
        in any
        Company benefit programs, receive any amounts under any Company benefit programs
        or otherwise receive any further benefits.

      

      4.  Expense
        Reimbursement:
        To the
        extent Employee has unreimbursed business expenses, incurred through the
        Termination Date, Employee must promptly submit the expenses with all
        appropriate documentation; those expenses which meet the Company’s guidelines
        will be reimbursed. Any expense account that Employee has with the Company
        terminates effective on the Termination Date, and any expenses already incurred
        will be reviewed and processed in accordance with the policies and procedures
        of
        the Company. No new expenses may be incurred after the Termination Date.
        Employee agrees to promptly pay any outstanding balance on these accounts
        that
        represent non-reimbursable expenses. Company will pay accepted expenses within
        twenty (20) business days from the Termination Date, in accordance with the
        Company’s expense reimbursement guidelines existing as of the Execution Date.

      Employee
        hereby represents that (i) he has not incurred any reimbursable expenses
        subsequent to the Termination Date and (ii) as of the Termination Date he
        has
        provided the Company with appropriately detailed reports covering all
        reimbursable expenditures incurred up to the Termination Date.

       

      
        
          
          

        

        
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      5. No
        Admission:
        Employee
        understands that this Agreement does not constitute an admission by the Company
        of any liability, error or omission, including without limitation, any: (a)
        violation of any statute, law, or regulation; (b) breach of contract, actual
        or
        implied; or (c) commission of any tort.

      

      6. Acknowledgement:
        Employee
        acknowledges that the consideration provided in this Agreement under Sections
        2(a), 2(d) and 2(e) exceed that to which Employee would otherwise be entitled
        under the normal operation of any benefit plan, policy or procedure of the
        Company or under any previous agreement (written or oral) between the Parties.
        Employee further acknowledges that the agreement by NanoSensors to provide
        the
        Severance Payment and the consideration pursuant to this Agreement beyond
        Employee’s entitlement is conditioned upon Employee’s release of all claims
        against NanoSensors and Employee’s compliance with all the terms and conditions
        of this Agreement.

      

      7. No
        Other
        Payments:
        The
        Parties agree that, except as provided for herein, there shall be no other
        payments or benefits payable to Employee, including but not limited to, salary,
        bonuses, fees, commissions and/or other payments. 

      

      8.  Arbitration:

      

      a. The
        Parties specifically, knowingly and voluntarily agree to arbitrate any claim,
        controversy or dispute which has arisen or should arise in connection with
        Employee’s employment, the cessation of Employee’s employment, or in any way
        related to the terms of this Agreement. The Parties agree to arbitrate any
        and
        all such controversies, disputes, and claims before a single arbitrator in
        the
        State of California in accordance with the Rules of the American Arbitration
        Association. The arbitrator shall be selected by the Association and shall
        be an
        attorney-at-law experienced in the field of corporate law and admitted to
        practice in the State of California. The arbitration shall occur in the
        Association’s office closes to the Company’s headquarters. In the course of any
        arbitration pursuant to this Agreement, the Parties agree (i) to request
        that a
        written award be issued by the arbitrator and (ii) that each side is entitled
        to
        receive any and all relief it would be entitled to receive in a court
        proceeding. The Parties knowingly and voluntarily agree to enter into this
        arbitration clause and, except for claims contemplated in Section
        8(b)
        below,
        waive any rights that might otherwise exist to request a jury trial or other
        court proceeding. This paragraph is intended to be both a post-dispute and
        pre-dispute arbitration clause. Any judgment upon any arbitration award may
        be
        entered in any court, federal or state, having competent jurisdiction of
        the
        Parties. The Parties’ agreement to arbitrate disputes includes, but is not
        limited to, any claims of unlawful discrimination and/or unlawful harassment
        under Title VII of the Civil Rights Act of 1964, as amended, the Age
        Discrimination in Employment Act 1967, as amended, the Americans with
        Disabilities Act, and any other federal, state or local law relating to
        discrimination in employment and any claims relating to wage and hour claims
        and
        any other statutory or common law claims.

      

      b. Notwithstanding
        the foregoing, Employee acknowledges and agrees that the breach by Employee
        of
        the non-disparagement, confidentiality, non-competition, assignment or
        cooperation obligations (as provided by Sections
        9 - 15 and 20
        of this
        Agreement) will cause the Company irreparable injury not compensable by money
        damages and therefore, the Company will not have an adequate remedy at law.
        Accordingly, the Company may commence a proceeding for equitable relief in
        any
        court of competent jurisdiction to enforce such rights. If the Company
        institutes an action or proceeding to enforce such obligations, it shall
        be
        entitled to injunctive or other equitable relief to prevent or curtail any
        such
        breach, threatened or actual. 

       

      
        
          
          

        

        
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      9. Confidential
        Treatment:
        Employee
        and NanoSensors agree that the terms and existence of this Agreement are
        and
        shall remain confidential and agrees not to disclose any terms or provisions
        of
        this Agreement, or to talk or write about the negotiation, execution or
        implementation of this Agreement, without the prior written consent of the
        other, except (a) as required by law or by regulatory authorities, including
        as
        may be required under the Securities Exchange Act of 1934, as amended, and
        the
        rules and regulations of the U.S. Securities and Exchange Commission promulgated
        thereunder; (b) as required within NanoSensors to process this Agreement;
        or (c)
        in connection with any arbitration or litigation arising out of this Agreement.
        Anything herein to the contrary notwithstanding, Employee may disclose the
        terms
        of this Agreement to Employee’s immediate family, accountant or attorney,
        provided they are made aware of and agree to the confidentiality
        provisions.

      

      10. Proprietary
        Information:
        Employee
        further acknowledges and agrees that the provisions of Section
        6.1
        of the
        Employment Agreement (“Confidential
        and Proprietary Rights”)
        shall
        remain in full force and effect and acknowledges his obligations thereunder
        not
        to, without limitation, disclose or use the Company’s Proprietary Information,
        as such term is defined in Section
        6.1
        of the
        Employment Agreement. 

      

      11.  Restrictive
        Covenants:
        Employee
        agrees and acknowledges that the restrictive covenants set forth in Section
        6.3
        of the
        Employment Agreement remain in full force and effect and the twelve-month
        restrictive period contemplated by such section shall commence on the
        Termination Date. Further, in addition to the provisions of Section
        6.3,
        Employee agrees that in consideration for the payments and other consideration
        provided in this Agreement, Employee will not, during the period of
        non-competition referred to in Section
        6.3
        of the
        Employment Agreement, either directly or indirectly, solicit any person or
        entity who is retained by the Company as a consultant or advisor (or who
        was so
        retained by the Company within six months of the Termination Date) in connection
        with any Competitive Business. As used herein the term “Competitive
        Business”
        shall
        mean the manufacture, development and/or distribution of sensor devices to
        detect e. coli and salmonella. The Company agrees that the foregoing definition
        of the term “Competitive Business” shall supersede the definition of such term
        as provided in Section 6.3 of the Employment Agreement. 

      

      12. Assignment
        of Work Product:
        Employee
        further acknowledges and agrees that the provisions of Section
        6.2
        of the
        Employment Agreement (“Assignment
        of Inventions”)
        shall
        remain in full force and effect and Employee acknowledges, and hereby reaffirms
        his agreement to perform, his obligations thereunder.

      

      13. No
        Disparagement:
        Employee
        agrees that commencing on the Execution Date and for a period of three years
        thereafter, Employee shall not make any negative or derogatory statements
        in
        verbal, written, electronic or any other form about the Company, or its
        officers, employees and directors including, but not limited to, a negative
        or
        derogatory statement made in, or in connection with, any article or book,
        on a
        website, in a chat room or via the internet. The Company agrees not to issue,
        and will advise its executive officers and directors not to make, any negative
        or derogatory statements in verbal, written, electronic or any other form
        about
        Employee during the three-year period described in the first sentence of
        this
        paragraph.

       

      
        
          
          

        

        
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      14. Litigation:

      

      a. Employee
        shall cooperate fully with the Company in the prosecution or defense, as
        the
        case may be, of any and all actions, governmental inquiries or other legal
        or
        regulatory proceedings in which Employee’s assistance may be reasonably
        requested by the Company. Reasonable expenses arising from the cooperation
        will
        be advanced or reimbursed within the Company’s guidelines. Consistent with the
        Company’s Certificate of Incorporation and By-Laws, each as amended to date, the
        Company will hold harmless and indemnify Employee from and against any expenses
        (including attorneys’ fees), fines, judgments and amounts paid in settlement
        arising from any claim, suit or other action against Employee by any third
        party, on account of any action or inaction by Employee taken or omitted
        to be
        taken by Employee on behalf of NanoSensors during the course of his employment,
        up to the Termination Date, provided that such action or inaction by Employee
        was within the scope of Employee’s employment, consistent with the Company’s
        policies and procedures and not within any of the applicable exceptions set
        forth in Section
        8
        of the
        Employment Agreement. In accordance with Section
        8
        of the
        Employment Agreement, the Company further agrees to use commercially reasonable
        efforts to maintain such insurance, including, but not limited to, directors’
and officers’ liability insurance, and liability insurance, as is necessary and
        reasonable to protect the Employee from any and all claims arising from or
        in
        connection with his employment by the Company for a period of six (6) years
        after the Termination Date. 

      

      b. Except
        if
        required by applicable law, Employee agrees that he will not provide support
        or
        assistance, directly or indirectly, to any individual, corporation, or other
        non-governmental entity in connection with any claim, action, suit or proceeding
        involving the Company or any of its affiliates unless required to do so by
        law
        (in which case Employee agrees to promptly notify the Company of such legal
        requirement).

      

      c. Employee
        acknowledges that he has advised the Company completely and candidly of all
        facts of which he is aware that may give rise to legal matters. 

      

      15. References:
        Employee
        shall direct all requests for references to be forwarded in writing to the
        Company, attention: Office of the President. The Company will state in response
        to such inquiries your dates of employment and positions held. The Company
        shall
        not be responsible for responses to reference requests sought or obtained
        other
        than under the procedures set forth in this paragraph. The Company shall
        direct
        employees authorized to make communications concerning Employee not to convey
        negative or derogatory statements regarding Employee if contacted for a
        reference.

      

      16.  Release
        of Claims: 

      

         a. Release.
        Employee
        has executed the General Release appended as Exhibit B to this Agreement,
        which
        General Release is hereby incorporated into this Agreement by
        reference.

       

      b. Employee
        Right. Employee
        and Company hereby agree that solely in the event the Company commences a
        legal
        proceeding against Employee, Employee shall have the option to void the General
        Release appended to this Agreement, subject to the condition precedent that
        he
        repays to the Company all amounts paid by the Company to the Employee pursuant
        to Section 2 of this Agreement (the “Repayment
        Amount”).
        In
        the event the Employee elects to exercise this option and deliver the Repayment
        Amount to the Company, the General Release contemplated in Section 16(a)
        hereof
        and appended as Exhibit B to this Agreement shall be deemed void and
        unenforceable, effective upon the Company’s receipt of the Repayment Amount in
        immediately available U.S. funds. Notwithstanding the foregoing, the right
        granted to Employee pursuant to this Section 16(b) shall not be exercisable
        with
        respect to any: (i) any rights, remedies, or claims Company may have in
        enforcing the terms of this Agreement or (ii) claim (including counterclaims)
        that the Company may have in an action or proceeding commenced by the Employee
        that is excluded from the scope of the General Release.

       

      
        
          
          

        

        
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      c. Waiver
        of Civil Code Section 1542. Employee
        represents, warrants, and agrees that it has been informed of, has read,
        is
        familiar with, understands, and does hereby expressly waive all rights that
        it
        has or may have under Section 1542 of the California Civil Code and all other
        similar rights in other states or territories of the United States of America,
        or any other jurisdiction, as said Section may apply to the releases in this
        Agreement only. Said Section 1542 provides: 

       

      A
        GENERAL
        RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
        TO
        EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
        HIM,
        MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

      

      17.  Governing
        Law:
        This
        Agreement shall be deemed to have been made within the State of California,
        and
        shall be interpreted and construed and enforced in accordance with the laws
        of
        the State of California without regard to its conflicts of law
        provision.

      

      18.  Right
        to
        Review:
        Employee
        is hereby advised of Employee’s rights to review this Agreement with counsel of
        Employee’s choice. Employee has had the opportunity to consult with an attorney
        and/or other advisor of Employee’s choosing before signing the Agreement, and
        was given a period of twenty-one (21) days to consider the Agreement. Employee
        is permitted, at his discretion, to return the Agreement prior to the expiration
        of this twenty-one (21) day period. Employee acknowledges that in signing
        this
        Agreement, Employee has relied only on the promises written in this Agreement,
        and not on any other promise made by the Company or any other entity or
        person.

      

      19. No
        Claims:
        Employee
        represents that Employee has not filed any complaints, charges or claims
        against
        NanoSensors with any local, State, or Federal agency or court, or with any
        other
        forum. Employee represents and warrants that he is the sole and lawful owner
        of
        all rights, titles and interest in and to every claim and other matters which
        he
        releases herein, and that no other person, individual, or entity has received
        any assignment or other right of substitution or subrogation to any matters
        relating to or arising out of any such claim. 

      

      20. Company
        Representation:
        The
        Company acknowledges that it has advised Employee completely and candidly
        of all
        facts of which it is aware that may give rise to legal matters. The Company
        is
        not aware of any claims or any facts giving rise to a claim against the Employee
        by the Company, nor does the Company have any present intention, based on
        its
        current awareness, to make any claim against Employee. Nothing herein however
        shall be construed as a waiver or release by the Company to pursue any legal
        or
        equitable remedy it may have against Employee under any statute, contract
        or
        applicable law.

      

      21. Return
        of Property:
        Except
        as specified in Section
        2(e)
        of this
        Agreement, on or before the Termination Date, Employee shall return any Company
        property in his possession or custody or under his control, no matter where
        located including, but not limited to, I.D. or security cards, corporate
        credit
        card, keys, computer disks, equipment, furniture, computers, peripherals
        and
        other electronic devices, and any written or electronic material prepared
        or
        received during his employment with the Company, including without limitation,
        memoranda, reports, files, correspondence, manuals, notes, specifications,
        data,
        whether existing in hard copy or other media. 

      

      22. Performance
        of Agreement:
        In the
        event Employee materially breaches this Agreement, Employee agrees to forfeit
        the entire consideration given for this release and to pay the Company any
        actual damages caused by Employee’s breach. In the event the Company materially
        breaches this Agreement, all amounts due hereunder will be accelerated and
        become due immediately.

       

      
        
          
          

        

        
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      23. Severability:
        If any
        provision of this Agreement, or any part thereof, is held to be invalid or
        unenforceable because of the scope or duration of or the area covered by
        such
        provision, the Parties agree that the court or other appropriate decision-making
        authority making such determination shall reduce the scope, duration and/or
        area
        of such provision (and shall substitute appropriate provisions for any such
        invalid or unenforceable provisions) in order to make such provision enforceable
        to the fullest extent permitted by law and/or shall delete specific words
        and
        phrases, and such modified provision shall then be enforceable and shall
        be
        enforced. In the event that any court or other appropriate decision-making
        authority determines that the time period or the area, or both, are unreasonable
        and that any of the covenants is to that extent invalid or unenforceable,
        the
        Parties hereto agree that such covenants will remain in full force and effect,
        first, for the greatest time period, and second, in the greatest geographical
        area that would not render them unenforceable. If any provision of this
        Agreement is held to be invalid or unenforceable, the remaining provisions
        of
        this Agreement shall nonetheless survive and be enforced to the fullest extent
        permitted by law.

      

      24. Separate
        Counsel:
        The
        Parties acknowledge that NanoSensors has been represented in this transaction
        by
        Becker & Poliakoff, LLP. Employee hereby expressly acknowledges that he has
        been advised that he has not been represented by the Company’s attorneys in this
        matter and that Employee has been advised and urged to seek separate legal
        counsel for advice in this matter.

      

      25. Notices:
        Any
        notices hereunder shall be sent to the Company and to Employee at their
        respective addresses set forth below. Any notice shall be given by certified
        mail, return receipt requested, postage prepaid, overnight courier or personal
        delivery. Notices shall be deemed to have been given when deposited in the
        United States mail or delivered to a nationally-recognized courier service.
        Either Party may designate any other address to which notice shall be given,
        by
        giving written notice to the other of such change of address in the manner
        herein provided.

      

        
          	
                  If
                    to the Company:

                   

                  NanoSensors,
                    Inc. 

                  1800
                    Wyatt Drive, Suite 2

                  Santa
                    Clara, CA 95054

                  Attention:
                    Chief Executive Officer

                	
                  If
                    to Employee:

                   

                  Ted
                    L. Wong 

                  c/o
                    Ray L. Wong, Esq.

                  Duane
                    Morris, LLP

                  One
                    Market, Spear Tower, Suite 2000

                  San
                    Francisco, CA 94105-1104

                

        

      

       

      26. Entire
        Agreement; Modifications:
        Except
        as otherwise expressly provided herein, this Agreement and Release, together
        with the General Release constitute the entire agreement between the Parties
        and
        supersede any and all prior agreements, whether written or oral. This Agreement
        may not be modified or changed, except in a written agreement signed by both
        Parties. The failure
        of either party at any time to require performance by the other party of
        any
        provision hereof shall in no way affect the full right to require such
        performance at any time thereafter. Nor shall the waiver by either party
        of a
        breach of any provision hereof constitute a waiver of any succeeding breach
        of
        the same or any other such provision nor constitute a waiver of the provision
        itself. The Agreement may be executed in multiple counterparts, each of which
        shall be considered an original but all of which shall constitute one
        agreement.

       

      [Remainder
        of Page Intentionally Left Blank]

       

      
        
          
          

        

        
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      IN
        WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
        set
        forth below.

      

      I
        have read this Agreement, and I understand all of its terms. I enter into
        and
        sign this Agreement knowingly and voluntarily with full knowledge of what
        it
        means. I understand that I have twenty-one (21) days to consider this Agreement
        and return it to NANOSENSORS. I also understand that I have seven (7) days
        to
        revoke this Agreement in writing after I sign it. I understand that a revocation
        will become effective only if I furnish NANOSENSORS with written notice,
        within
        such seven (7) day period. This Agreement will not become effective or
        enforceable until NANOSENSORS’s receipt back of Employee’s executed Agreement
        and the expiration of the seven day revocation period.     

      

      
        	
                Employee:

                 

                 

                /s/
                  Ted L. Wong

                Ted
                  L. Wong 

              	
                NanoSensors,
                  Inc.:

                 

                 

                By:
                  /s/
                  Robert Baron

                Name:
                  Robert Baron

                Title:
                  Authorized Representative 

              
	 	 
	
                Date:
                  September 6, 2007

              	
                Date:
                  September 9, 2007

              

      

       

      
        
          
          

        

        
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      Exhibit
        A

      
        	 	 	 	 
	
                Original
                  Issuance Date:

              	
                Number:

              	
                Exercise
                  Price:

              	
                Expiration
                  Date:

              
	 	 	 	 
	
                December
                  13, 2006

              	
                5,000,000

              	
                $0.049

              	
                August
                  13, 2016

              
	 	 	 	 
	
                December
                  13, 2006

              	
                13,000,000

              	
                $0.049

              	
                August
                  13, 2016

              
	 	 	 	 
	
                TOTAL
                  OPTIONS

              	
                18,000,000

              	 	 
	 	 	 	 
	
                Vesting:
                  All of the above options will become fully vested on the Termination
                  Date

              

      

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        B

      

      CONSULT
        WITH AN ATTORNEY BEFORE SIGNING GENERAL RELEASE. BY SIGNING THIS GENERAL
        RELEASE, YOU GIVE UP AND WAIVE IMPORTANT LEGAL RIGHTS.

      

      GENERAL
        RELEASE

      

      I,
        Ted L.
        Wong, understand and, of my own free will, enter into this General
        Release.
 

      In
        consideration of the payments, benefits, agreements, and other consideration
        to
        be provided by NanoSensors, Inc. (“NanoSensors”) as described in the agreement
        of which this General Release is a part (such agreement, this General Release,
        together, the “Agreement”), Ted L. Wong, for himself and for his heirs,
        executors, administrators, and their respective successors and assigns
        (collectively, “Employee”), HEREBY
        RELEASES AND FOREVER DISCHARGES,
        to the
        maximum extent permitted by law, NanoSensors, Inc., its stockholders (solely
        in
        their capacity as stockholders of NanoSensors), subsidiaries, affiliates,
        divisions, successors and assigns, their respective current and former officers,
        directors, employees, agents, attorneys, whether as individuals or in their
        official capacity, and each of their respective successors and assigns
        (hereinafter collectively referred to as “NanoSensors”) of and from all or any
        manner of actions, causes and causes of action, suits, debts, obligations,
        damages, complaints, liabilities, losses, covenants, contracts, controversies,
        agreements, promises, variances, trespasses, judgments and expenses (including
        attorneys’ fees and costs), extents, executions, claims and demands whatsoever
        at law or in equity (“claims”), specifically including by way of example but not
        limitation, Title VII of the Civil Rights Acts of 1964 and 1991, as amended;
        the
        Civil Rights Act of 1866; the Employee Retirement Income Security Act of
        1974,
        as amended; the National Labor Relations Act, as amended; the Americans with
        Disabilities Act of 1990; the Age Discrimination in Employment Act of 1967,
        as
        amended; the Worker Adjustment and Retraining Notification Act; the Pregnancy
        Discrimination Act; and all Federal, State and local statutes, regulations,
        decisional law and ordinances and all human rights, fair employment, contract
        and tort laws relating to Employee’s employment with NanoSensors and/or the
        termination and any civil rights or human rights law, as well as all claims
        for
        wrongful discharge, breach of contract, personal injury, defamation, mental
        anguish, injury to health and reputation, and sexual harassment, which Employee
        ever had, now has, or which Employee hereafter can, shall or may have for,
        upon
        or by reason of any matter, cause or thing whatsoever arising out of Employee’s
        employment by NanoSensors or the termination thereof, provided that this
        General
        Release shall not extend to (i) any rights, remedies, or claims Employee
        may
        have in enforcing the terms of this Agreement; (ii) any rights Employee may
        have
        to receive vested amounts under NanoSensors’ stock option plan, 401(k) or
        pension plans; (iii) Employee’s rights to medical benefit continuation coverage,
        on a self-pay basis, pursuant to federal law (COBRA); and (iv) claims for
        indemnification (whether under state law, the Company’s by-laws or otherwise)
        for acts performed as an officer or director of the Company or any of its
        affiliates. Employee takes this action fully aware of Employee’s rights arising
        under the laws of the United States (and any State or local governmental
        entity
        thereof) and voluntarily waives and releases all such rights or claims under
        these or other laws, but does not intend to, nor is Employee waiving any
        rights
        or claims that may arise after the date that this Agreement is signed by
        Employee. The provisions of any laws providing in substance that releases
        shall
        not extend to claims which are at the time unknown to or unsuspected by the
        person executing such release, are hereby waived.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      Waiver
        of Civil Code Section 1542. Employee
        represents, warrants, and agrees that it has been informed of, has read,
        is
        familiar with, understands, and does hereby expressly waive all rights that
        it
        has or may have under Section 1542 of the California Civil Code and all other
        similar rights in other states or territories of the United States of America,
        or any other jurisdiction, as said Section may apply to the releases in this
        Agreement only. Said Section 1542 provides: 

      

      A
        GENERAL
        RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
        TO
        EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
        HIM,
        MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR 

      

      Employee
        represents that Employee has been advised to and has had an opportunity to
        consult with an attorney and/or any other advisors of Employee’s choosing before
        signing this Agreement, and was given a period of twenty-one (21) days to
        consider this Agreement. Employee is permitted, at his discretion, to return
        the
        Agreement prior to the expiration of this 21-day period. Employee has relied
        only on the promises written in the Agreement, and not on any other promise
        made
        by NanoSensors or any other entity or person.

      

      Employee
        has seven (7) days to revoke the Agreement after Employee signs it. The
        Agreement will not become effective or enforceable until NanoSensors’s receipt
        back of Employee’s executed Agreement and the expiration of the seven day
        revocation period.

      

      Employee
        has read and understood the Agreement and enters into it knowingly and
        voluntarily.

      

      IN
        WITNESS WHEREOF, Ted L. Wong has set his hand this 6th day of September,
        2007
        having had the opportunity to review this with counsel of his or her
        choice.

      

      
        	
                 

                /s/
                  Ted L.
                  Wong                                 
                  

                Ted
                  L. Wong 

              

      

      

      
        
          
          

        

        
          11Executive
      Services Agreement

     

    September
      7, 2007

     

    Mr.
      Bob
      Marbut

    Chairman

    Argyle
      Security, Inc.

    200
      Concord Plaza

    Suite
      700

    San
      Antonio, TX 78216

    

    Dear
      Mr.
      Marbut:

     

    Tatum,
      LLC ("Tatum") understands that Argyle Security, Inc. ("the Company") desires
      to
      engage a partner of Tatum to serve as chief financial officer. This Executive
      Services Agreement sets forth the conditions under which such services will
      be
      provided.

    

    Services;
      Fees

     

    Tatum
      will make available to the Company Don
      Neville (the "Tatum Partner"), who will serve as chief financial officer of
      the
      Company. The Tatum Partner will become an employee and, if applicable, a duly
      elected or appointed officer of the Company and subject to the supervision
      and
      direction of the co-CEO’s of the Company, the board of directors of the Company,
      or both. Tatum will have no control or supervision over the Tatum Partner.
      

     

    The
      Monthly Charge to the Company will be $30,000 subject to the adjustment
      described below. The Company will pay the Tatum Partner directly a salary of
      $24,000, representing 80% of the Monthly Charge ("Salary").
      In addition, the Company will pay directly to Tatum a fee of $6,000,
      representing 20% of the Monthly Charge ("Fees"),
      as partial compensation for resources provided. 

     

    The
      Company will have no obligation to provide the Tatum Partner any health or
      major
      medical benefits, stock, or bonus payments. The Tatum Partner will remain on
      his
      or her current medical plan.

     

    Payments;
      Deposit

     

    Payments
      to Tatum should be made by direct deposit through the Company's payroll, or
      by
      an automated clearing house ("ACH") payment at the same time as payments are
      made to the Employee. If such payment method is not available and payments
      are
      made by check, Tatum will issue invoices to the Company, and the Company agrees
      to pay such invoices no later than ten (10) days after receipt of invoices.
      

     

    The
      Company will reimburse the Tatum Partner directly for out-of-pocket expenses
      incurred by the Tatum Partner in providing services hereunder to the same extent
      that the Company is responsible for such expenses of senior managers of the
      Company. The Company will also reimburse travel expenses, including mileage,
      hotels and meals from Austin to the Company by providing a lump sum,
      non-accountable monthly expense amount of $2,500.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      Company agrees to pay Tatum and to maintain a security deposit of $10,000 for
      the Company's future payment obligations to both Tatum and the Tatum Partner
      under this agreement (the "Deposit"). If the Company breaches this agreement
      and
      fails to cure such breach as provided in this agreement, Tatum will be entitled
      to apply the Deposit to its damages resulting from such breach. Upon termination
      or expiration of this agreement, Tatum will return to the Company the balance
      of
      the Deposit remaining after application of any amounts to unfulfilled payment
      obligations of the Company to Tatum or the Tatum Partner as provided for in
      this
      agreement.

     

    Hiring
      Tatum Partner Outside of Agreement

     

    During
      the twelve (12)-month period following termination or expiration of this
      agreement, other than in connection with another Tatum agreement, the Company
      will not employ the Tatum Partner, or engage the Tatum Partner as an independent
      contractor, to render services of substantially the same nature as those to
      be
      performed by the Tatum Partner as contemplated by this agreement.  The
      parties recognize and agree that a breach by the Company of this provision
      would
      result in the loss to Tatum of the Tatum Partner's valuable expertise and
      revenue potential and that such injury will be impossible or very difficult
      to
      ascertain.  Therefore, in the event this provision is breached, Tatum will
      be entitled to receive as liquidated damages an amount equal to forty-five
      percent (45%) of the Tatum Partner's Annualized Compensation (as defined below),
      which amount the parties agree is reasonably proportionate to the probable
      loss
      to Tatum and is not intended as a penalty.  If, however, a court or
      arbitrator, as applicable, determines that liquidated damages are not
      appropriate for such breach, Tatum will have the right to seek actual damages.
       The amount will be due and payable to Tatum upon written demand to the
      Company.  For this purpose, ''Annualized Compensation'' will mean monthly
      Salary equivalent to what the Tatum Partner would receive on a full-time basis
      multiplied by twelve (12), plus the maximum amount of any bonus for which
      the Tatum Partner was eligible with respect to the then current bonus
      year.

    

    Term
      & Termination

     

    Effective
      upon fifteen (15) days' advance written notice, either party may terminate
      this
      agreement, such termination to be effective on the date specified in the notice,
      provided that such date is no earlier than fifteen (15) days after the date
      of
      delivery of the notice. Tatum will continue to render services and will be
      paid
      during such notice period.

     

    Tatum
      retains the right to terminate this agreement immediately if (1) the Company
      is
      engaged in or asks the Tatum Partner to engage in or to ignore any illegal
      or
      unethical activity, (2) the Tatum Partner dies or becomes disabled, (3) the
      Tatum Partner ceases to be a partner of Tatum for any other reason, or (4)
      upon
      written notice by Tatum of non-payment by the Company of amounts due under
      this
      agreement. For purposes of this agreement, disability will be as defined by
      the
      applicable policy of disability insurance or, in the absence of such insurance,
      by Tatum's management acting in good faith.

     

    In
      the
      event that either party commits a breach of this agreement, other than for
      reasons described in the above paragraph, and fails to cure the same within
      seven (7) days following delivery by the non-breaching party of written notice
      specifying the nature of the breach, the non-breaching party will have the
      right
      to terminate this agreement immediately effective upon written notice of such
      termination.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Insurance

     

    To
      the
      extent the Company has directors' and officers' liability insurance in effect,
      the Company will provide such insurance coverage for the Tatum Partner, along
      with written evidence to Tatum or the Tatum Partner that the Tatum Partner
      is
      covered by such insurance.

     

    Furthermore,
      the Company will maintain such insurance coverage with respect to occurrences
      arising during the term of this agreement for at least three years following
      the
      termination or expiration of this agreement or will purchase a directors' and
      officers' extended reporting period, or "tail," policy to cover the Tatum
      Partner.

     

    Disclaimers,
      Limitations of Liability & Indemnity

     

    Tatum
      assumes no responsibility or liability under this agreement other than to render
      the services called for hereunder and will not be responsible for any action
      taken by the Company in following or declining to follow any of Tatum's advice
      or recommendations. Tatum represents to the Company that Tatum has conducted
      its
      standard screening and investigation procedures with respect to the Tatum
      Partner becoming a partner in Tatum, and the results of the same were
      satisfactory to Tatum. Tatum disclaims all other warranties, either express
      or
      implied. Without limiting the foregoing, Tatum makes no representation or
      warranty as to the accuracy or reliability of reports, projections, forecasts,
      or any other information derived from use of Tatum's resources, and Tatum will
      not be liable for any claims of reliance on such reports, projections,
      forecasts, or information. Tatum will not be liable for any non-compliance
      of
      reports, projections, forecasts, or information or services with federal, state,
      or local laws or regulations.
      Such
      reports, projections, forecasts, or information or services are for the sole
      benefit of the Company and not any unnamed third parties.

     

    In
      the
      event that any partner of Tatum (including without limitation the Tatum Partner
      to the extent not otherwise entitled in his or her capacity as an officer of
      the
      Company) is subpoenaed or otherwise required to appear as a witness or Tatum
      or
      such partner is required to provide evidence, in either case in connection
      with
      any action, suit, or other proceeding initiated by a third party or by the
      Company against a third party, then the Company shall reimburse Tatum for the
      costs and expenses (including reasonable attorneys' fees) actually incurred
      by
      Tatum or such partner and provide Tatum with compensation at Tatum's customary
      rate for the time incurred.

     

    The
      Company agrees that, with respect to any claims the Company may assert against
      Tatum in connection with this agreement or the relationship arising hereunder,
      Tatum's total liability will not exceed two (2) months of Fees.

     

    As
      a
      condition for recovery of any liability, the Company must assert any claim
      against Tatum within three (3) months after discovery or sixty (60) days after
      the termination or expiration of this agreement, whichever is earlier.

     

    Tatum
      will not be liable in any event for incidental, consequential, punitive, or
      special damages, including without limitation, any interruption of business
      or
      loss of business, profit, or goodwill.

     

    Arbitration

     

    If
      the
      parties are unable to resolve any dispute arising out of or in connection with
      this agreement, either party may refer the dispute to arbitration by a single
      arbitrator selected by the parties according to the rules of the American
      Arbitration Association ("AAA"), and the decision of the arbitrator will be
      final and binding on both parties. Such arbitration will be conducted by the
      Houston, Texas, office of the AAA. In the event that the parties fail to agree
      on the selection of the arbitrator within thirty (30) days after either party's
      request for arbitration under this paragraph, the arbitrator will be chosen
      by
      AAA. The arbitrator may in his discretion order documentary discovery but shall
      not allow depositions without a showing of compelling need. The arbitrator
      will
      render his decision within ninety (90) days after the call for arbitration.
      The
      arbitrator will have no authority to award punitive damages. Judgment on the
      award of the arbitrator may be entered in and enforced by any court of competent
      jurisdiction. The arbitrator will have no authority to award damages in excess
      or in contravention of this agreement and may not amend or disregard any
      provision of this agreement, including this paragraph. Notwithstanding the
      foregoing, either party may seek appropriate injunctive relief from a court
      of
      competent jurisdiction, and either party may seek injunctive relief in any
      court
      of competent jurisdiction.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Miscellaneous

     

    Tatum
      will be entitled to receive all reasonable costs and expenses incidental to
      the
      collection of overdue amounts under this agreement, including but not limited
      to
      attorneys' fees actually incurred.

     

    The
      Company agrees to allow Tatum to use the Company’s logo and name on Tatum’s
      website and other marketing materials for the sole purpose of identifying the
      Company as a client of Tatum. Tatum will not use the Company’s logo or name in
      any press release or general circulation advertisement without the Company’s
      prior written consent. 

     

    Neither
      the Company nor Tatum will be deemed to have waived any rights or remedies
      accruing under this agreement unless such waiver is in writing and signed by
      the
      party electing to waive the right or remedy. This agreement binds and benefits
      the respective successors of Tatum and the Company.

     

    Neither
      party will be liable for any delay or failure to perform under this agreement
      (other than with respect to payment obligations) to the extent such delay or
      failure is a result of an act of God, war, earthquake, civil disobedience,
      court
      order, labor dispute, or other cause beyond such party's reasonable
      control.

     

    The
      provisions concerning payment of compensation and reimbursement of costs and
      expenses, limitation of liability, directors' and officers' insurance, and
      arbitration will survive the expiration or any termination of this
      agreement.

     

    This
      agreement will be governed by and construed in all respects in accordance with
      the laws of the State of Texas, without giving effect to conflicts-of-laws
      principles.

     

    The
      terms
      of this agreement are severable and may not be amended except in writing signed
      by the party to be bound. If any portion of this agreement is found to be
      unenforceable, the rest of the agreement will be enforceable except to the
      extent that the severed provision deprives either party of a substantial benefit
      of its bargain. 

     

    Nothing
      in this agreement shall confer any rights upon any person or entity other than
      the parties hereto and their respective successors and permitted assigns and
      the
      Tatum Partner.

     

    Each
      person signing below is authorized to sign on behalf of the party indicated,
      and
      in each case such signature is the only one necessary.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Bank
      Lockbox Mailing Address for Deposit and Fees:

     

    
      	
              Tatum,
                LLC

              P.O.
                Box 403291

              Atlanta,
                GA 30384-3291

            	 

    

     

    Electronic
      Payment Instructions for Deposit and Fees:

     

    
      	
              Bank
                Name: Bank of America 

            
	
              Branch:
                Atlanta

            	 
	
              Routing
                Number: 

            	
              For
                ACH Payments: 061 000 052

            
	 	
              For
                Wires: 026 009 593

            
	
              Account
                Name: Tatum, LLC

            
	
              Account
                Number: 003 279 247 763

            
	
              Please
                reference Argyle
                Security Acquisition Corporation in
                the body of the wire.

            

    

     

    Please
      sign below and return a signed copy of this letter to indicate the Company's
      agreement with its terms and conditions.

     

    We
      look
      forward to serving you.

     

    Sincerely
      yours,

     

    
      	TATUM,
              LLC	 	 	Acknowledged
              and
              agreed by:
	 	 	 	 
	/s/ Bob
              Litschi	 	 	ARGYLE
              SECURITY, INC.
	
              
Signature	 	 	
            
	
               

              Bob
                Litschi

              
Area
                Managing
                Partner for Tatum, LLC

            	 	 	/s/ Bob
              Marbut 
              
Signature
	 	 	 	
              Bob Marbut, Chairman

               

            
	 	 	 	
              9/7/07

              
                

              
(Date)

    

     

    
      
        
        

      

      
        5

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