Document:

Exhibit 10.7

ESCROW
AGREEMENT        (PUBLIC OFFERING)

 

 

                AGREEMENT
made this
                                     
day of

by and among Lightspace
Corporation (the “Issuer”) and the Underwriter whose names and addresses appear
on the Information Sheet (as defined herein) attached to this Agreement and
Continental Stock Transfer & Trust Company, 17 Battery Place, 8the Floor,
New York, New York 10004. (The “Escrow Agent”).

 

W I T N E
S S E T H:

 

WHEREAS, the Issuer has filed with the
Securities and Exchange Commission (the “Commission”) a Registration Statement
(the “Registration Statement”) covering a proposed public offering of its
securities as described on the Information Sheet;

 

WHEREAS, the Underwriter proposes to offer the
Securities, as agent for the Issuer, for sale to the public on a “best efforts,
all or none” basis with respect to the Minimum Securities Amount and Minimum
Dollar Amount and at the price per share or other unit all as set forth, on the
Information Sheet;

 

WHEREAS the Issuer and the Underwriter propose
to establish an Escrow Account (the “Escrow Account”), to which subscription
monies which are received by the Escrow Agent from the Underwriter in
connection with such public offering are to be credited, and the Escrow Agent
is willing to establish the Escrow Account and the terms are subject to the
conditions hereinafter set forth; and

 

WHEREAS, the Escrow Agent has an agreement with
JP Morgan Chase to establish a special Bank Account (the “Bank Account”) into
which the subscription monies, which are received by the Escrow Agent from the
Underwriter and credited to the Escrow Account, are to be deposited;

 

NOW, THEREFORE in consideration of the premises and mutual covenants
herein contained, the parties hereto hereby agree as follows:

 

1. Information
Sheet. Each capitalized term not otherwise defined in
this Agreement shall have the meaning set forth for such term on the
information sheet which is attached to this Agreement and is incorporated by
reference herein and made a part hereof (the “Information Sheet”).

 

2.  Establishment of the Bank
Account.

 

2.1 The Escrow Agent
shall establish a non-interest bank account at the branch of JP Morgan
Chase selected by the Escrow Agent, and bearing the designation set forth on
the Information Sheet (heretofore defined as the “Bank Account”). The purpose
of the Bank Account is for (a) the deposit of all subscription monies (checks, or
wire transfers) which are received by the Underwriter from prospective
purchasers of the Securities and are delivered by the Underwriter to the Escrow
Agent, (b) the holding of amounts of subscription monies which are collected
through the banking system, and (c) the disbursement of collected funds, all as
described herein.

 

2.2 On or before the date
of the initial deposit in the Bank Account pursuant to this Agreement, the
Underwriter shall notify the Escrow Agent in writing of the Effective Date of
the Registration Statement (the “Effective Date”), and the Escrow Agent shall
not be required to accept any amounts for credit to the Escrow Account or for
deposit in the Bank Account prior to its receipt of such notification.

 

2.3 The Offering Period,
which shall be deemed to commence on the Effective Date, shall consist of the
number of calendar days or business days set forth on the Information Sheet.
The Offering Period shall be extended by an Extension Period only if the Escrow
Agent shall have received written notice thereof at least five (5) business
days prior to the expiration of the Offering Period. The Extension Period,
which shall be deemed to commence on the next calendar day following the
expiration of the Offering Period, shall consist of the number of calendar days
or business days set forth on the Information Sheet. The last day of the
Offering Period, or the last day of the Extension Period (if the Escrow Agent
has received written notice thereof as hereinabove provided), is referred to
herein as the “Termination Date”. Except as provided in Section 4.3 hereof,
after the Termination Date the Underwriter shall not deposit, and the Escrow
Agent shall not accept, any additional amounts representing payments by
prospective purchasers.

 

1

 

3.  Deposits to the Bank
Account.

 

3.1           The Underwriter shall promptly, but in
no event later than noon on the business day immediately following the day such
monies are received by the Underwriter, deliver to the Escrow Agent all monies
which it receives from prospective purchasers of the Securities, which monies
shall be in the form of checks or wire transfers, provided however that “Cashiers”
checks and “Money Orders” must be in amounts greater than $10,000; Cashiers
checks or Money Orders in amounts less than $10,000 shall be rejected by the
Escrow Agent.  Upon the Escrow Agent’s receipt
of such monies, they shall be credited to the Escrow Account. All checks
delivered to the Escrow Agent shall be made payable to “CST&T
                                       
Escrow Account.”  Any check payable other
than to the Escrow Agent as required hereby shall be returned to the
prospective purchaser, or if the Escrow Agent has insufficient information to
do so, then to the Underwriter (together with any Subscription Information, as
defined below or other documents delivered therewith) by noon of the next
business day following receipt of such check by the Escrow Agent, and such
check shall be deemed not to have been delivered to the Escrow Agent pursuant
to the terms of this Agreement.

 

3.2           Promptly after receiving subscription
monies as described in Section 3.1, the Escrow Agent shall deposit the same
into the Bank Account.  Amounts of monies
so deposited are hereinafter referred to as “Escrow
Amounts”.  The Escrow Agent
shall cause JP Morgan Chase to process all Escrow Amounts for collection through
the banking system.  Simultaneously with
each deposit to the Escrow Account, the Underwriter (or the Issuer, if such
deposit is made by the Issuer) shall inform the Escrow Agent in writing of the
name, address, and the tax identification number of the purchaser, the amount
of Securities subscribed for by such purchase, and the aggregate dollar amount
of such subscription (collectively, the “Subscription
Information”).

 

3.3           The Escrow Agent shall not be required
to accept for credit to the Escrow Account or for deposit into the Bank Account
checks which are not accompanied by the appropriate Subscription Information,
which at minimum shall include the name address, tax identification number and
the number of shares/units.  Wire
transfers representing payments by prospective purchasers shall not be deemed
deposited in the Escrow Account until the Escrow Agent has received in writing
the Subscription Information required with respect to such payments.

 

3.4 The Escrow Agent
shall not be required to accept in the Escrow Account any amounts representing
payments by prospective purchasers, whether by check or wire, except during the
Escrow Agent’s regular business hours.

 

3.5 Only those Escrow
Amounts, which have been deposited in the Bank Account and which have cleared
the banking system and have been collected by the Escrow Agent, are herein
referred to as the “Fund”.

 

3.6 If the proposed
offering is terminated before the Termination Date, the Escrow Agent shall
refund any portion of the Fund prior to disbursement of the Fund in accordance
with Article 4 hereof upon instructions in writing signed by both the Issuer
and the Underwriter.

 

4.  Disbursement from the Bank
Account.

 

4.1 Subject to Section
4.3 below, if by the close of regular banking hours on the Termination Date the
Escrow Agent determines that the amount in the
Fund is less than the Minimum Dollar Amount or the Minimum Securities Amount, as indicated by
the Subscription information submitted to the Escrow Agent, then in either such
case, the Escrow Agent shall promptly refund to each prospective purchaser the
amount of payment received from such purchaser which is then held in the Fund
or which thereafter clears the banking system, without interest thereon or
deduction therefrom, by drawing checks on the Bank Account for the amounts of
such payments and transmitting them to the purchasers. In such event, the
Escrow Agent shall promptly notify the Issuer and the Underwriter of its
distribution of the Fund.

 

4.2 Subject to Section
4.3 below, if at any time up to the close of regular banking hours on the
Termination Date, the Escrow Agent determines that the amount in the Fund is at
least equal to the Minimum Dollar Amount and represents the sale of not less
than the Minimum Securities Amount, the Escrow Agent shall promptly notify the
Issuer and the Underwriter of such fact in writing. The Escrow Agent shall
promptly disburse the Fund, by drawing checks on the Bank Account in accordance
with instructions in writing signed by both the Issuer and the Underwriter
as to the disbursement of the Fund, promptly after it receives such
instructions.

 

 

2

4.3  (This provision applies only if a Collection
Period has been provided for by the appropriate indication on the Information
Sheet.]  If the Escrow Agent or the
Underwriter has on hand at the close of business on the Termination Date any
uncollected amounts which when added to the Fund would raise the amount in the
Fund to the Minimum Dollar Amount, and result in the Fund representing the sale
of the Minimum Securities Amount, the Collection Period (consisting of the
number of business days set forth on the Information Sheet)
                                           
shall be utilized to allow such uncollected amounts to clear the banking
system. During the Collection Period, the Underwriter (and the Issuer) shall
not deposit and the Escrow Agent shall not accept, any additional amounts;
provided, however, that such amounts as were received by the Underwriter (or the
Issuer) by the close of business on the Termination Date may be deposited with
the Escrow Agent by noon of the next business
                                                           
day following the Termination Date. If, at the close of business on the last
day of the Collection Period, an amount sufficient to raise the amount in the
Fund to the Minimum Dollar Amount and which would result in the Fund
representing the sale of the Minimum Securities Amount shall not have cleared
the banking system, the Escrow Agent shall promptly notify the Issuer and the
Underwriter in writing of such fact and shall promptly return all amounts then
in the Fund, and any amounts which thereafter clear the banking system to the
prospective purchasers as provided in Section 4.2 hereof.

 

4.4 Upon disbursement of the Fund pursuant to the terms of this Article 4, the
Escrow Agent shall be relieved of all further obligations and
released from all liability under this Agreement. It is expressly agreed and
understood that in no event shall the aggregate amount of payments made by the
Escrow Agent exceed the amount of the Fund.

 

5. Rights, Duties and
Responsibilities of Escrow Agent.  It
is understood and agreed that the duties of the Escrow Agent are purely
ministerial in nature, and that:

 

5.1 The Escrow Agent
shall notify the Underwriter, on a daily basis, of the Escrow Amounts which
have been deposited in the Bank Account and of the amounts, constituting the
Fund, which have cleared the banking system and have been collected by the
Escrow Agent.

 

5.2 The Escrow Agent
shall not be responsible for or be required to enforce any of the terms or
conditions of the underwriting agreement or any other agreement between the
Underwriter and the Issuer nor shall the Escrow Agent be responsible for the
performance by the Underwriter or the Issuer of their respective obligations
under this Agreement.

 

5.3 The Escrow Agent
shall not be required to accept from the Underwriter (or the Issuer) any
Subscription Information pertaining to prospective purchasers unless such
Subscription Information is accompanied by checks, or wire transfers meeting
the requirements of Section 3.1, nor shall the Escrow Agent be required to keep
records of any information with respect to payments deposited by the Underwriter
(or the Issuer) except as to the amount of such payments; however, the Escrow
Agent shall notify the Underwriter within a reasonable time of any discrepancy
between the amount set forth in any Subscription Information and the amount
delivered to the Escrow Agent therewith. Such amount need not be accepted for
deposit in the Escrow Account until such discrepancy has been resolved.

 

5.4 The Escrow Agent
shall be under no duty or responsibility to enforce collection of any check
delivered to it hereunder. The Escrow Agent, within a reasonable time, shall
return to the Underwriter any check received which is dishonored, together with
the Subscription Information, if any, which accompanied such check.

 

5.5 The Escrow Agent shall be entitled to rely upon the accuracy, act in
reliance upon the contents, and assume the
genuineness of any notice, instruction, certificate, signature,
instrument or other document which is given to the Escrow Agent pursuant to
this Agreement without the necessity of the Escrow Agent verifying the truth or
accuracy thereof. The Escrow Agent shall not be obligated to make any inquiry
as to the authority, capacity, existence or identity of any person purporting
to give any such notice or instructions or to execute any such certificate,
instrument or other document.

 

5.6 If the Escrow Agent
is uncertain as to its duties or rights hereunder or shall receive instructions
with respect to the Bank Account, the Escrow Amounts or the Fund which, in its
sole determination, are in conflict either with other, instructions received by
it or with any provision of this Agreement, it shall be entitled to hold the
Escrow Amounts, the Fund, or a portion thereof, in the Bank Account pending the
resolution of such uncertainty to the Escrow Agent’s sole satisfaction, by
final judgment of a court or courts of competent jurisdiction or
otherwise;  or the Escrow Agent, at its
sole option, may deposit the Fund (and any other Escrow Amounts that thereafter
become part of the Fund) with the Clerk of a court of competent jurisdiction in
a proceeding to which all parties in interest are joined. Upon the deposit by
the Escrow

 

 

3

Agent of the Fund with
the Clerk of any court, the Escrow Agent shall be relieved of all further
obligations and released from all liability hereunder.

 

5.7 The Escrow Agent
shall not be liable for any action taken or omitted hereunder, or for the
misconduct of any employee, agent or attorney appointed by it, except in the
case of willful misconduct or gross negligence. The Escrow Agent shall be
entitled to consult with counsel of its own choosing and shall not be Liable
for any action taken, suffered or omitted by it in accordance with the advice
of such counsel.

 

5.8 The Escrow Agent
shall have no responsibility at any time to ascertain whether or not any
security interest exists in the Escrow Amounts, the Fund or any part thereof or
to file any statement under the Uniform Commercial Code with respect to the
Fund or any part thereof.

 

6. Amendment;
Resignation.  This Agreement may be
altered or amended only with the written consent of the Issuer, the Underwriter
and the Escrow Agent. The Escrow Agent may resign for any reason upon three (3)
business days’ written notice to the Issuer and the Underwriter.
Should the Escrow Agent resign as herein provided, it
shall not be required to accept any deposit, make any disbursement or otherwise dispose of the Escrow Amounts or the Fund, but its only
duty shall be to hold the Escrow Amounts until they clear the banking system
and the Fund for a period of not more than five (5) business days following the
effective date of such resignation, at which time (a) if a successor escrow
agent shall have been appointed and written notice thereof (including the name and
address of such successor escrow agent) shall have been given to the resigning
Escrow Agent by the Issuer, the Underwriter and such successor escrow agent,
then the resigning Escrow Agent shall pay over to the successor escrow agent
the Fund, less any portion thereof previously paid out in accordance with this
Agreement; or (b) if the resigning Escrow Agent shall not have received written
notice signed by the Issuer, the Underwriter and a successor escrow agent, then
the resigning Escrow Agent shall promptly refund the amount in the Fund to each
prospective purchaser without interest thereon or deduction therefrom, and the
resigning Escrow Agent shall promptly notify the Issuer and the Underwriter in
writing of its liquidation and distribution of the Fund; whereupon, in either
case, the Escrow Agent shall be relieved of all further obligations and
released from all liability under this Agreement. Without limiting the
provisions of Section 9 hereof, the resigning Escrow Agent shall be entitled to
be reimbursed by the Issuer and the Underwriter for any expenses incurred in
connection with its resignation, transfer of the Fund to a successor escrow
agent or distribution of the Fund pursuant to this Section 6.

 

7. Representations and
Warranties of the Escrow Agent.  The
Escrow Agent represents and warrants to the Issuer and the Underwriter that (i)
the Escrow Agent is a “bank” within the meaning of Section 3(a)(6) of the
Securities Act of 1934 (the “Exchange Act”) and (ii) the material facts and
conditions relied upon by the Securities and Exchange Commission in concluding
that the Escrow Agent may receive customer funds pursuant to Rule 15c2-4 under
the Exchange Act in the no-action letter dated May 9, 1989, previously provided
to the Issuer and the Underwriter remain true and correct as of the date hereof
and shall remain true and correct during the Offering Period and any Extension
Period.

 

8. Representations and
Warranties of the Issuer and the Underwriter.  The Issuer and the Underwriter hereby jointly
and severally represent and warrant to the Escrow Agent that:

 

8.1 No party other than
the parties hereto and the prospective purchasers have, or shall have, any
lien, claim or security interest in the Escrow Amounts or the Fund or any part
thereof.

 

8.2 No financing
statement under the Uniform Commercial Code is on file in any jurisdiction
claiming a security interest in or describing (whether specifically or
Generally) the Escrow Amounts or the Fund or any part thereof.

 

8.3 The
Subscription information submitted with each deposit shall, at the time of
submission and at the time of disbursement of the Fund, be deemed a
representation and warranty that such deposit represents a bona fide payment by
the purchaser described therein for the amount of securities in such described
as Subscription Information.

 

8.4 All of the
information contained in the
Information Sheet is, as of the date hereof, and will be, at the time of any
disbursement of the Fund, true and correct.

 

8.5 Reasonable controls
have been established and required due diligence performed to comply with “Know
Your Customer” regulations, USA Patriot Act, Office of the Foreign Asset
Control (OFAC) regulations and the Bank Secrecy Act.

 

9. Fees and Expenses.  The Escrow Agent shall be entitled to the
Escrow Agent Fees set forth on the Information Sheet, payable as and when
stated therein. In addition, the Issuer and the Underwriter jointly and
severally agree to reimburse the Escrow Agent for any reasonable expenses
incurred in connection with this Agreement, including, but not limited to,
reasonable counsel fees. Upon receipt of the Minimum Dollar Amount, the Escrow
Agent shall have a lien upon the Fund to the extent of its fees for services as
Escrow Agent.

 

 

4

10. Indemnification
and Contribution.

 

10.1 The Issuer and the
Underwriter (collectively referred to as the “Indemnitors”) jointly and
severally agree to indemnify the Escrow Agent and its officers,
directors, employees, agents and shareholders (collectively referred to as the “
Indemnitees”) against, and hold them harmless of and from, any and all loss,
liability, cost, damage and expense, including without limitation, reasonable
counsel fees, which the Indemnitees may suffer or incur by reason of any action,
claim or proceeding brought against the Indemnitees arising out of or relating
in any way to this Agreement or any transaction to which this Agreement
relates, unless such action, claim or proceeding is the result of the willful
misconduct or gross negligence of the Indemnitees.

 

10.2 If the
indemnification provided for in Section 10.1 is applicable, but for any reason
is held to be unavailable, the Indemnitors shall contribute such amounts as are
just and equitable to pay, or to reimburse the Indemnitees for, the aggregate
of any and all losses, liabilities, costs, damages and expenses, including
counsel fees, actually incurred by the Indemnitees as a result of or in
connection with, and any amount paid in settlement of, any action, claim or
proceeding arising out of or relating in any way to any actions or omissions of
the Indemnitors.

 

10.3 The
provisions of this Article 10 shall survive any termination of this Agreement,
whether by disbursement of the Fund, resignation of the Escrow Agent or otherwise.

 

11. Governing Law and
Assignment. This Agreement shall be
construed in accordance with and governed by the laws of the State of New York and shall be binding upon the parties hereto and their respective successors and assigns; provided,
however, that any assignment or transfer by any
party of its rights under this Agreement or with respect to the Escrow Amounts
or the Fund shall be void as against the Escrow Agent unless (a) written notice
thereof shall be given to the Escrow Agent; and (b) the Escrow Agent shall have
consented in writing to such assignment or transfer.

 

12. Notices.  All notices required to be given in
connection with this Agreement shall be sent by registered or certified mail,
return receipt requested, or by hand delivery with receipt acknowledged, or by
the Express Mail service offered by the United States Post Office, and
addressed, if to the Issuer or the Underwriter, at their respective addresses
set forth on the Information Sheet, and if to the Escrow Agent, at its address
set forth above, to the attention of the Trust Department.

 

13. Severability.  If any provision of this Agreement or the
application thereof to any person or circumstance shall be determined to be
invalid or unenforceable, the remaining provisions of this Agreement or the
application of such provision to persons or circumstances other than those to
which it is held invalid or unenforceable shall not be affected thereby and
shall be valid and enforceable to the fullest extent permitted by law.

 

14. Execution in Several
Counterparts.  This Agreement may be
executed in several counterparts or by separate instruments, and all of such
counterparts and instruments shall constitute one agreement, binding on all of
the parties hereto.

 

15. Entire Agreement.  This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings (written or oral) of the
parties in connection therewith.

 

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

 

	
  THE ISSUER

  	
   

  	
  CONTINENTAL STOCK TRANSFER & TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  THE UNDERWRITER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  {08/05}

  	
   

  	
   

  

 

 

 

5

EXHIBIT A

 

ESCROW
AGREEMENT INFORMATION SHEET

 

1.             1.             The Issuer

	
  Name:

  	
   

  	
  Lightspace Corporation

  
	
  Address:

  	
   

  	
  529 Main Street

  
	
   

  	
   

  	
  Boston, Massachusetts 02129

  
	
   

  	
   

  	
   

  
	
  Tax identification number: 04-3572975

  

 

2.             The Placement
Agent

	
  Name:

  	
   

  	
  Griffin Securities, Inc.

  
	
  Address:

  	
   

  	
  17 State Street

  
	
   

  	
   

  	
  New York, New York 10004

  
	
   

  	
   

  	
   

  

 

 

3.             The Securities

Description of the Securities to be offered:  Up to 720,000 Units, each Unit consisting of
(i) eight shares of the Issuer’s common stock, (ii) eight warrants to purchase
one share of common stock at an exercise price of $1.00 per share, (iii) two
warrants to purchase one share of common stock at an exercise price of $1.25
per share and (iv) two warrants to purchase one share of common stock at an
exercise price of $1.63 per share.

 

4.             Minimum Amounts
and Conditions Required for Disbursement of the Escrow Account 

Aggregate dollar amount which must be collected before
the Escrow Account may be disbursed to the Issuer:  $4,352,000, representing the purchase of
680,000 Units.

 

5.             Plan of
Distribution of the Securities

Initial Offering Period:  30 days.

Extension Period, if any:  30 days, at the discretion of the Issuer with
the consent of the Underwriter.

6.             Title of Escrow
Account

“CST&T AAF                                              

 

7.             Escrow Agent
Fees and Charges

$2,500: $1250.00 payable at signing of the Escrow
Agreement, plus $1250.00 prior to the Closing. $2,500:         $1250.00 payable at signing of the Escrow Agreement, plus
$1250.00 prior to the Closing.  A fee of
$500 will be payable for document review services related to each amendment to
the Escrow Agreement.  In addition, the
Escrow Agent shall be paid a fee of $500.00 for each additional closing.  Should the Escrow Agent continue for more
than one year, the Escrow Agent shall receive a fee of $500.00 per month, or
any portion thereof, payable in advance or the first business day of the month.

 

 

Distribution charges:

$10.00 per check

$25.00 per wire

$50.00 per check returned (NSF) check

$50.00 lost check replacement feeExhibit
10.8

 

Lightspace
Corporation

125
CambridgePark Drive

Cambridge,
MA 02140

 

 

April 21, 2006

 

 

Andrew Kennedy Lang

387 Concord Ave.

Cambridge, MA 02140

 

 

Dear Ken,

 

                Re:          Separation Agreement

 

This letter agreement (this “Agreement”)
confirms the terms of the termination of your employment with the Lightspace
Corporation (the “Company”) and your separation agreement with the
Company.

 

The Company and you have
agreed as follows:

 

                1.             Termination of Employment;
Benefits.  This Agreement confirms
that your employment with the Company has been terminated without cause effective
as of March 31, 2006 (the “Termination  Date”).  Your employer-sponsored health insurance
coverage, disability and life insurance were terminated as of the Termination
Date.

 

                2.             Board of Directors. You
hereby resign from your position as an officer and member of the board of
directors of the Company, effective immediately.  The Company will pay completely amounts due
on credit cards guaranteed by you and terminate such cards.  The Company acknowledges that, as a former
officer and director of the Company, you shall be entitled to indemnification
from the Company to the fullest extent permitted by the Company’s by-laws, as
amended from time to time, and Delaware law.

 

3.             Final Payments and Severance Pay.    The
Company will make the following payments in connection with your separation
from employment and, subject to your execution of this Agreement, the severance
payment and advance payment for consulting services described below:

 

                (a)           $21,750 (subject to statutory
deductions and withholdings), which you acknowledge is the value of your accrued
but unpaid wages and your accrued but unused vacation through the Termination
Date, and which you acknowledge was paid to you on the Termination Date;

 

                (b)           reimbursement of your expenses in the
aggregate amount of $47,636.11, payable to you immediately upon the execution
of this Agreement;

 

                (c)           severance amount equal to $10,000
(the “Severance”), payable to you as soon as the Administaff payroll
system permits and upon the execution of this Agreement; and

 

 

 

 

(d)           a gross payment of $20,000
payable to you immediately upon the execution of this Agreement, which
represents an advance payment for up to 100 hours of your post-employment
consulting work as further described in Section 6.  For all consulting hours worked in excess of
100 hours, the Company will pay you at the rate of $200 per hour.

 

You also acknowledge that you will be given notice under separate cover
of your right to elect to receive, at your own expense, continuation coverage
in the Company’s group health care plans pursuant to the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“COBRA”).

 

You agree that the
arrangements set forth in this Paragraph 3 shall be in full and complete
satisfaction of any and all sums which are now or might hereafter have become
due and owing to you for services rendered by you during your term of employment
with the Company or otherwise in respect of your membership on the Company’s
Board of Directors, including without limitation, all wages at any time due and
owing, expenses, vacation time, sick time, paid time off, paid leaves of
absence, severance, bonus, retirement plans, pension plans or deferred
compensation plans.

 

4.             Return of Company Materials.  You will, at the Company’s request, promptly
return to the Company all equipment and property (in any form, media,
electronic format or otherwise) provided by the Company to you in connection
with the performance of your duties as an employee, officer and/or director of
the Company. Notwithstanding the foregoing, the Company agrees that you may
retain such information as may be necessary for you to perform your duties as a
consultant pursuant to Section 6 of this Agreement and, further, that you may continue
to use the laptop computer that was provided to you during your employment with
the Company until the earlier to occur of (i) the end of the consulting period,
or (ii) the conclusion of the lease period of the laptop.

 

                5.             Continuation of Certain
Agreements.  You acknowledge and
agree that the Arbitration Agreement between yourself and the Company attached
hereto as Exhibit A and the Proprietary
Information and Inventions Agreement between yourself and the Company attached
hereto as Exhibit B each remain in full
force and effect in accordance with their terms and are hereby incorporated by
reference into this Agreement and are made a part hereof.  You agree to comply with each such agreement
and understand that a breach of any of your obligations under such agreements shall
be considered a material breach of this Agreement.

 

                6.             Consulting Services.  The Company hereby agrees to retain you, and
you hereby agree to perform for the Company, certain consulting services as
reasonably requested by the Company from time to time, including, without
limitation, answering informational questions the Company may have about its
business, records, past transactions and other matters, assisting the Company
to transfer business knowledge and to transition to other persons the tasks for
which you have been responsible during your employment with the Company, and advising
the Company with respect to all matters arising during, or related to, your
employment, including but not limited to matters in connection with any patent
prosecution, litigation or similar process, governmental investigation,
litigation or regulatory or other proceeding which may arise following the date
of this Agreement (the “Consulting Services”).   The
Consulting Services shall be performed at times and locations that are mutually
acceptable to you and the Company.  Subject
to your execution of this Agreement, the Company shall pay you a gross lump sum
payment of $20,000 as an advance for the first 100 hours of Consulting
Services.  After you have

 

2

 

performed 100 hours of consulting services,
the Company shall pay you at the rate of $200 per hour for each hour of
Consulting Services requested in advance by the Company.  You agree to submit invoices to the Company
on a semi-monthly basis.  The Company
agrees to pay all invoices on the first regularly scheduled payroll immediately
following the Company’s receipt of your invoice.  The Company agrees that if it fails to timely
pay any invoice, the amount due for each such invoice shall accrued interest at
the rate of eight percent (8%) on an annual basis.  Following the completion of the first 100
hours of Consulting Services, the consulting arrangement may be terminated by
either party upon ten (10) days prior written notice.  You acknowledge and agree that any breach of
your obligations to provide the first 100 hours of Consulting Services under
this Paragraph 6 shall be considered a material breach of this Agreement

 

                7.             Release.  In consideration of the foregoing provisions
in this Agreement, you hereby irrevocably and forever fully release, discharge
and acquit the Company and Administaff Companies II, L.P. (“Administaff”)
and all of their respective officers, directors, shareholders, general
partners, agents, employees, servants, investors, attorneys, legal
representatives, lenders, underwriters, insurers, predecessor and successor
companies, assigns and all persons, natural or corporate, in privity with it or
any of them (collectively, the “Released
Parties”) from any and all claims, demands, actions, causes of action,
damages, costs, suits, proceedings, obligations, debts, losses, sums of money,
accounts, bills, reckonings, covenants, contracts, liabilities, and controversies
of any kind whatsoever, known or unknown, present or future, suspected or
unsuspected, at law or in equity, which you may now have or hold, or may have
had, or held at any time, that relate or arise from your employment with the
Company, including, but not limited to, (a) any claims arising out of your
employment, including without limitation, claims based upon race, national
origin, gender, age, sexual orientation or handicap discrimination; or (b) any
alleged violation of: the Age Discrimination in
Employment Act of 1967; the National Labor Relations Act, as amended; Title VII
of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991;
Sections 1981 through 1988 of Title 42 of the United States Code, as amended;
the Employee Retirement Income Security Act of 1974, as amended; the Fair Labor
Standards Act, as amended; the Americans With Disabilities Act; any
other federal, state or local civil or human rights law; any other local, state
or federal law, regulation or ordinance; or any public policy, contract, tort,
or common law (collectively, the “Released Claims”).  Notwithstanding the foregoing, this Paragraph
7 shall not release the Company from (i) the Company’s obligations and
agreements set forth in this Agreement, (ii) its obligations under the Amended
and Restated Securityholder Debt and Equity Conversion and Exchange Agreement,
dated February 9, 2006 (the “Exchange  Agreement”), (iii) the
Company’s obligations under the Contingent Note which may be issued by the
Company to you pursuant to the Exchange Agreement, a copy of which is attached
hereto as Exhibit C (“Contingent Note”) or (iv) the Company’s obligations to indemnify you
in accordance with the Company’s bylaws for acts arising prior to the date
hereof.  The Company acknowledges that you
shall remain a holder of certain of the Company’s common stock, debt and
warrants (subject to the Exchange Agreement) and that nothing in this release
shall limit your rights and interests in connection with such securities, debts
or warrants or release the Company with respect to its obligations in respect
thereof.

You
acknowledge that this Release is made for the benefit of all of the Released
Parties, and that any Released Party shall have the right and benefit to
enforce its rights under this Release against you.

                Furthermore,
you agree that you will not sue the Company, Administaff or any of the 

 

3

 

other Released Parties regarding any matter
released in the foregoing Release. You further represent and warrant that (i) you
are the only person who is entitled to assert any of the Released Claims;
(ii)  you have not assigned to any person
any of your rights to any of the Released Claims; and (iii) you have right to
enter into this Agreement and to the Release contemplated hereby.

You
acknowledge and agree that any attempt to circumvent your release or failure to
perform your other obligations under this Paragraph 7 shall be considered a
material breach of this Agreement.

 

8.             Confidentiality; Mutual Non-Disparagement.

 

                (a)           The terms and conditions of this Agreement, and the actions
contemplated hereby, shall be confidential and shall not be disclosed by either
party to any third person, except in the Company’s case, (i) as required in
connection with the planned registration of an offering of securities of the
Company or (ii) pursuant to a written confidentiality agreement with such third
person.

 

                (b)           The Company agrees that the Released Parties will not,
directly or indirectly, disparage you or do or say anything that will otherwise
harm your personal or professional reputation. 
You agree that you will continue to use your best efforts to support and
promote the interests and reputation of the Company in the community, that you
will not, directly or indirectly, disparage the Company or any of the people,
products or organizations associated with the Company, including without
limitation, its employees, directors, representatives,  legal representatives, advisors, consultants,
shareholders, investors or underwriters, and that you will not, directly or
indirectly, otherwise do or say anything to intentionally disrupt the morale of
the employees of the Company or otherwise harm the Company’s business or
reputation.  Nothing herein shall
preclude you or the Company, however, from responding truthfully as required by
lawful process, summons or subpoena or otherwise as required by law.  You acknowledge and agree that any breach of either
Party’s obligations under this Paragraph 8 shall be considered a material
breach of this Agreement.

 

9.             Miscellaneous.

 

                                (a)           You represent and acknowledge that:
(i) you have adequate information regarding all matters encompassed by this Agreement
to make an informed and knowledgeable decision regarding the decision to enter
into this Agreement; (ii) you have had the opportunity to obtain advice of
your own counsel to review and evaluate the terms of this Agreement and the
arrangements set forth herein, and (ii) you have not relied upon the advice of
the Company or any of its directors, officers, advisors, shareholders or legal
representatives in connection with this Agreement.  Accordingly, this Agreement shall be
considered to be jointly drafted by both parties hereto and shall not be
construed against either party.

 

                                (b)           Each party agrees to execute all documents and take all
such further action as may be necessary to evidence and effect this Agreement
and any other documents referenced herein.

 

4

 

                                (c)           This Agreement constitutes the
parties’ entire agreement with respect to the matters covered herein.  All prior and contemporaneous conversations,
negotiations, proposals, representations, covenants, and warranties with
respect to the subject matter of this Agreement, whether oral or written, are
merged herein and superseded by this Agreement. 
Neither party is relying on any statement, representation or
understanding not contained herein.  This
Agreement may be amended only by a written instrument which is signed by both parties
hereto and which specifically states that it is an amendment to this Agreement.  No waiver of any right hereunder shall be
valid unless in a writing signed by the waiving party.  No failure or other delay by any party
exercising any right, power, or privilege hereunder shall be or operate as a
waiver thereof, nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power, or
privilege.

                                (d)           This Agreement shall be construed in
accordance with the laws of the Commonwealth of Massachusetts, without regard
to choice of law provisions.  Any claims
or legal actions by one party against the other arising out of the relationship
between the parties contemplated herein (whether or not arising under this
Agreement) shall be commenced and maintained in any state or federal court
located in Suffolk County in the Commonwealth of Massachusetts, and both
parties hereby submit to the exclusive jurisdiction and venue of any such
court.

                                (e)           This Agreement may be executed by the parties in
counterparts (and may be executed by facsimile), each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument.  Signatures transmitted by
fax or email (via .pdf or similar format) shall constitute original signatures
for the purposes of this Agreement.

 

 

If the terms of this
Agreement are acceptable to you, please countersign this Agreement below where
indicated and return it to the Company, to the attention of Gary Florindo,
Chief Executive Officer.

 

 

	
   

  	
   

  	
   

  	
   

  	
  LIGHTSPACE
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Gary Florindo

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Gary Florindo

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   CEO

  

 

ACCEPTED AND AGREED:

/s/ Andrew Kennedy Lang                 

Andrew Kennedy Lang

Date: 4-21-06

 

5

 

 

EXHIBIT A

ARBITRATION AGREEMENT

 

6

 

 

EXHIBIT B

PROPRIETARY INFORMATION AND INVENTIONS
AGREEMENT

 

 

 

7

 

 

 

EXHIBIT
C

 

CONTINGENT
NOTE

 

 

 

 

8

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