exv10w7



 





EXHIBIT 10.7


GLOBALSECURE HOLDINGS, LTD.

2003 INCENTIVE STOCK PLAN

STOCK OPTION AGREEMENT





     This Stock Option Agreement is entered into under and subject to the Company’s 2003 Incentive
Stock Plan (“Plan”). Unless otherwise defined herein, capitalized terms shall have the same
meanings in this Stock Option Agreement as are defined in the Plan




	III.	 	NOTICE OF STOCK OPTION GRANT





Craig Bandes

c/o GlobalSecure Holdings, Ltd.

8401 Corporate Drive

Landover, MD



     The undersigned Optionee has been granted an Option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as follows:



	 	 	 
	Grant Number:
	 	 
	Date of Grant:

	 	 April 15, 2003
	Vesting Commencement Date:

	 	As per Vesting Schedule below
	Exercise Price Per Share:

	 	 $0.25
	Total Number of Shares Granted:

	 	 150,000
	Total Exercise Price:

	 	 $37,500
	Type of Option:

	 	 ISO
	Term/Expiration Date:

	 	 April 14, 2008





Vesting Schedule:




     This Option shall vest: 1/24th of the total number of shares granted shall vest at
the end of each calendar month with the first vesting occurring on April 30, 2003, assuming the
employee is in continuous service on each vesting date.


Termination Period:




     This Option shall be exercisable until the earlier of (i) the Expiration Date or (ii) 90 days
after the termination of Employee’s Continuous Service as an Employee. In no event may Optionee
exercise this Option after the Term/Expiration Date as provided above and any unvested portions of
the Option shall expire immediately upon termination of Continuous Service.




	IV.	 	AGREEMENT





     1. Grant of Option. The administrator of the Plan (the “Administrator”) has granted
to the Optionee an Option to purchase the number of Shares set forth in the Notice of Grant, at the
Exercise Price per Share set forth in the Notice of Grant, and subject to the terms and conditions
of the Plan, which is incorporated herein by reference- In the event of a conflict



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between the
terns and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan
shall prevail.




     If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is
intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.
Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), or to the
extent any other requirement of section 422 is not met, this Option shall be treated as a
Nonqualified Stock Option (“NSO”).



     2.Exercise of Option.



          (a) Right to Exercise. This Option shall be exercisable during its term in accordance
with the applicable provisions of the Plan and this Option Agreement.




          (b) Method of Exercise. This Option shall be exercisable by delivery of an Exercise
Notice in the form attached as Exhibit A which shall state the election to exercise the
Option, the number of Shares with respect to which the Option is being exercised, and such other
representations and agreements as may be required by the Company. The Exercise Notice shall be
accompanied by payment of the aggregate Exercise Price as to all exercised Shares and, where
required, by applicable withholding taxes. This Option shall be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise
Price.




               No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such
exercise comply with Applicable Laws. Assuming such compliance, for income tax purposes the Shares
shall be considered transferred to the Optionee on the date on which the Option is exercised with
respect to such Shares.



     3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee:



          (a) cash or check;




          (b) consideration received by the Company under a formal cashless exercise program adopted by
the Company in connection with the Plan;




          (c) surrender of other Shares which, (i) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six (6) months on the date of surrender, and
(ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the
exercised Shares; or




          (d) such other method as the Administrator permits.




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     4. Restrictions on Exercise. This Option may not be exercised until such time as the
Plan has been approved by the shareholders of the Company, or if the issuance of such Shares upon
such exercise or the method of payment of consideration for such shares would constitute a
violation of any Applicable Law.



     5. Non-Transferability of Option- This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of the Optionee.



     6. Term of Option. This Option may be exercised only within the term set out in the
Notice of Grant, and may be exercised during such term only in accordance with the Plan and the
terms of this Option.



     7. Optionee’s Representations. In the event the Shares have not been registered under
the Securities Act of 1933, as amended, at the time this Option is exercised, the Optionee shall,
if required by the Company, concurrently with the exercise of all or any portion of this Option,
deliver to the Company his or her Investment Representation Statement in the form attached hereto
as Exhibit B.



     8. Lock-Up Period. Optionee hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any registration
of the offering of any securities of the Company under the Securities Act or applicable law of any
other jurisdiction in which an offering is being made by the Company, Optionee shall not sell or
otherwise transfer any Shares or other securities of the Company during the 180-day period (or such
other period as may be requested in writing by the Managing Underwriter and agreed to in writing by
the Company) (the “Market Standoff Period”) following the effective date of a registration
statement of the Company filed under the Securities Act- Such restriction shall apply only to the
first registration statement of the Company to become effective under the Securities Act that
includes securities to be sold on behalf of the Company to the public in an underwritten public
offering under the Securities Act. The Company may impose stop-transfer instructions with respect
to securities subject to the foregoing restrictions until the end of such Market Standoff Period.



     9. Tax Consequences. Set forth below is a brief summary as of the date of this
Agreement of some of the federal tax consequences of exercise of this Option and disposition of the
Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF
THE SHARES.



          (a) Exercise of NSO. There may be a regular federal income tax liability, at ordinary
income tax rates, and employment taxes (FICA and FUTA) upon the exercise of an NSO, If Optionee is
an Employee or a former Employee, the Company will be required to withhold from Optionee’s
compensation or collect from Optionee and pay to the applicable taxing authorities an amount in
cash equal to the required withholdings at the time of exercise,




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and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of
exercise.




          (b) Exercise of ISO. If this Option qualifies as an ISO, there will be no regular
federal income tax liability upon the exercise of the Option, although the Optionee may be subject
to the alternative minimum tax in the year of exercise. In addition, the Internal Revenue Service
has proposed rules that would impose employment taxes in some situations on exercise.




          (c) Disposition of Shares. The disposition of Shares is generally a taxable event.
The tax treatment will depend on whether the Option is an ISO or an NSO, and on the length of rime
for which the Shares have been held by Optionee.




          (d) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to
Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of
Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify
the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income
tax withholding by the Company on the compensation income recognized by the Optionee.




     10. Entire Agreement; Governing Law. The Plan is incorporated herein by reference.
The Plan and this Option Agreement constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior undertakings and agreements of
the Company and Optionee with respect to the subject matter hereof, and may not be modified
adversely to the Optionee’s interest except by means of a writing signed by the Company and
Optionee. This agreement is governed by the laws of the State of New York.



     11. No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREUNDER DO NOT CONSTITUTE AN EXPRESS OR IMPLIED
PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE
IN ANY WAY WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS AN
EMPLOYEE AT ANY TIME, FOR ANY, OR NO, REASON EXCEPT AS MAY BE PROVIDED UNDER OTHER AGREEMENTS.



     Optionee acknowledges receipt of a copy of the Plan and represents that he or she is familiar
with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this Option and fully understands
all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final
all decisions or interpretations of the Administrator upon any questions arising under the Plan or
this Option. Optionee further agrees to notify the Company upon any change in the residence
address indicated below.



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	OPTIONEE:	 	GlobalSecure Holdings Ltd.
	/s/ Craig Bandes
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	Address:

	 	By:
	 	/s/ Michael Brigante
	901 S. St. Asaph St.

	 	 	 	 
	
Alexandria, VA 22314

	 	 	 	 





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EXHIBIT A




2003 STOCK INCENTIVE PLAN

EXERCISE NOTICE




GlobalSecure Holdings Ltd.

110 Wall Street

New York, New York 10005

Attention: President



     1. Exercise of Option. Effective as of today,___, 20_, the undersigned Optionee
hereby elects to exercise Optionee’s option to purchase Shares of the Common Stock of GlobalSecure
Holdings Ltd. (the “Company”) under and pursuant to the 2003 Incentive Stock Plan (the “Plan”) and
the Stock Option Agreement dated ___(the “Option Agreement”).



     2. Delivery of Payment. Purchaser herewith delivers to the Company the full purchase
price of the Shares, as set forth in the Option Agreement and any other required payments.



     3. Representations of Optionee. Optionee acknowledges that Optionee has received, read
and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms
and conditions.



     4. Rights as Shareholder. Until the issuance of the Shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares shall be
issued to the Optionee as soon as practicable after the Option is exercised. No adjustment shall be
made for a dividend or other right for which the record date is prior to the date of issuance
except as provided under the terms of the Plan.



     5. Company’s Right of First Refusal. Before any Shares held by Optionee or any
transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise
transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall
have a right of first refusal to purchase the Shares on the terms and conditions set forth in this
Section (the “Right of First Refusal”).



          (a) Notice of Proposed Transfer . The Holder of the Shares shall deliver to the
Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or
otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee;
and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer
the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the
Company or its assignee(s).




          (b) Exercise of Right of First Refusal At any time within 30 days after receipt of the
Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to
purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of
the Proposed Transferees, at the purchase price determined in accordance with subsection (c) below.




          (c) Purchase Price. The purchase price (“Purchase Price”) for the Shares purchased by
the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price
includes consideration other than cash, the cash equivalent value of the non-cash consideration
shall be determined by the Compensation (Remuneration) Committee of the Board of Directors of the
Company in good faith.




          (d) Payment. Payment of the Purchase Price shall be made, at the option of the Company
or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding
indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the
assignee), or by any combination thereof within 30 days after receipt of the Notice or in the
manner and at the times set forth in the Notice.




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          (e) Holder’s Right to Transfer. If all of the Shares proposed in the Notice to be
transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s)
as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that
Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 120 days after the date of the Notice, that any such sale or other
transfer is effected in accordance with any applicable securities laws and that the Proposed
Transferee agrees in writing that the provisions of this Section shall continue to apply to the
Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right of First Refusal
before any Shares held by the Holder may be sold or otherwise transferred.




          (f) Exception for Certain Family Transfers. Anything to the contrary contained in this
Section notwithstanding, the transfer of any or all of the Shares during the Optionee’s lifetime or
on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a trust for the
benefit of the Optionee’s immediate family shall be exempt from the provisions of this Section.
“Immediate Family” as used herein shall mean spouse, lineal descendant or antecedent, father,
mother, brother or sister. In such case, the transferee or other recipient shall receive and hold
the Shares so transferred subject to the provisions of this Section, and there shall be no further
transfer of such Shares except in accordance with the terms of this Section.




          (g) Termination of Right of First Refusal The Right of First Refusal shall terminate
as to any Shares upon the first sale of Common Stock of the Company to the general public pursuant
to a registration statement filed with and declared effective by the Securities and Exchange
Commission under the Securities Act of 1933, as amended.




     6. Tax Consultation. Optionee understands that Optionee may suffer adverse tax
consequences as a result of Optionee’s purchase or disposition of the Shares. Optionee represents
that Optionee has consulted with any tax consultants Optionee deems advisable in connection with
the purchase or disposition of the Shares and that Optionee is not relying on the Company for any
tax advice.



     7. Restrictive Legends and Stop-Transfer Orders. If the issuance of shares upon
exercise of this Option Agreement has not been registered under the Securities Act of 1933, as
amended, Optionee as a condition of and at the time of exercise shall deliver the Investment
Representation Statement attached as Exhibit B and the provisions of this Section 7 shall be
applicable.



          (a) Legends. Optionee understands and agrees that the Company shall cause the legends
set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s)
evidencing ownership of the Shares together with any other legends that may be required by the
Company or by state or federal securities laws:





THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY STATE
SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN
OPINION OF COUNSEL SATISFACTORY TO THE ISSUER AND ITS COUNSEL THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER THE ACT AND ANY STATE SECURITIES LAWS.




THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET
FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE
SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH
TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE
SHARES.



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          (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with
the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions
to its transfer agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.




          (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its
books any Shares that have been sold or otherwise transferred in violation of any of the provisions
of this Exercise Notice or (ii) to treat as owner of such Shares or to accord the right to vote or
pay dividends to any purchaser or other transferee to whom such Shares shall have been so
transferred.




     8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the
benefit of the successors and assigns of the Company. Subject to the restrictions on transfer
herein set forth, this Exercise Notice shall be binding upon Optionee and his or her heirs,
executors, administrators, successors and assigns.



	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 



  


     9. Interpretation. Any dispute regarding the interpretation of this Exercise Notice
shall be submitted by Optionee or by the Company forthwith to the Administrator which shall review
such dispute at its next regular meeting. The resolution of such a dispute by the Administrator
shall be final and binding on all parties.



     10. Governing Law; Severability. This Exercise Notice is governed by the laws of the
State of New York, without applicability of the doctrine of conflicts of law.



     11. Entire Agreement. The Plan and Option Agreement are incorporated herein by
reference. This Exercise Notice, the Plan, the Option Agreement and the Investment Representation
Statement constitute the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and Optionee.



	 	 	 	 	 	 	 	 	 
	Submitted by:	 	 	 	Accepted by:	 	 
	OPTIONEE	 	 	 	GLOBALSECURE HOLDINGS LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	Signature	 	 	 	Title: President	 	 
	Print Name:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Address:	 	 	 	 	 	 





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EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT




	 	 	 
	OPTIONEE:
	 	 
	COMPANY:

	 	GlobalSecure Holdings Ltd.
	SECURITY:
	 	 
	AMOUNT:
	 	 
	DATE:
	 	 






     In connection with the purchase of the above-listed Securities, the undersigned Optionee
represents to the Company the following:



          (a) Optionee is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision
to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee’s
own account only and not with a view to, or for resale in connection with, any “distribution”
thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).




          (b) Optionee acknowledges and understands that the Securities constitute “restricted
securities” under the Securities Act and have not been registered under the Securities Act in
reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the
bona fide nature of Optionee’s investment intent as expressed herein. In this connection, Optionee
understands that, in the view of the Securities and Exchange Commission, the statutory basis for
such exemption may be unavailable if Optionee’s representation was predicated solely upon a present
intention to hold these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future. Optionee further
understands that the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register the Securities.
Optionee understands that the certificate evidencing the Securities will be imprinted with a legend
which prohibits the transfer of the Securities unless they are registered or such registration is
not required in the opinion of counsel satisfactory to the Company, and any other legend required
under applicable state securities laws.




          (c) Optionee is familiar with the provisions of Rule 701 and Rule 144, each promulgated under
the Securities Act, which, in substance, permit limited public resale of “restricted securities”
acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions- Rule 701 provides that if the issuer qualifies under Rule 701
at the time of the grant of the Option to the Optionee, the exercise will be exempt from
registration under the Securities Act. In the event the Company becomes subject to the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, 90 days
thereafter (or such longer period as any market stand-off agreement may require) the Securities
exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said term




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is defined
under the Securities Exchange Act of 1934, as amended); and, in the case of an affiliate, (2) the
availability of certain public information about the Company, (3) the amount of Securities being
sold during any three-month period not exceeding the limitations specified in Rule 144(e), and (4)
the timely filing of a Form 144, if applicable. In the event that the Company does not qualify
under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not
less than one year after the later of the date the Securities were sold by the Company or the date
the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in
the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently
holds the Securities less than two years, the satisfaction of the conditions set forth in sections
(1), (2), (3) and (4) of the paragraph immediately above.




          (d) Optionee further understands that in the event all of the applicable requirements of Rule
701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A,
or some other registration exemption will be required; and that, notwithstanding the fact that
Rules 144 and 70.1 are not exclusive, the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rule 144 or 701 will have a substantial burden
of proof in establishing that an exemption from registration is available for such offers or sales,
and that such persons and their respective brokers who participate in such transactions do so at
their own risk. Optionee understands that no assurances can be given that any such other
registration exemption will be available in such event.




	 	 	 	 	 
	 	Signature of Optionee:

 	 



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CORRECTION

TO

STOCK OPTION AGREEMENT





     THIS CORRECTION TO STOCK OPTION AGREEMENT (this “Correction”) is made as of this March 28,
2005, in reference to that certain Stock Option Agreement grant date August 24, 2004, between
GlobalSecure Holdings, Ltd. and Craig Bandes, which is attached hereto (the “Stock Option
Agreement”).



RECITALS



A. At a meeting of the Board of Directors of GlobalSecure Holdings, Ltd. (the “Company”) held
on August 24, 2004, the Board of Directors of the Company granted to Craig Bandes, Chief Executive
Officer and President of the Company options to purchase 1,500,000 shares of common stock of the
Company at an exercise price of $1.22 per share (the “Options”).



B. The Board of Directors intended that the Options be granted to Mr. Bandes outside of the
Company’s 2003 Incentive Stock Plan as non-qualified stock options. However, the Stock Option
Agreement mistakenly reflected that the Options granted to Mr. Bandes were granted as incentive
stock options subject to the Company’s 2003 Incentive Stock Plan.



C. Consistent with the intent of the Board of Directors, the Company and Mr. Bandes desire to
correct the error contained Stock Option Agreement so that the Stock Option Agreement will properly
reflect that the Options are non-qualified stock options granted outside of the Company’s 2003
Incentive Stock Plan. All other terms of the Stock Option Agreement will remain the same.




     NOW THEREFORE, in consideration of the recitals, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and desiring to
correct the Stock Option Agreement so as to properly reflect the terms of the grant, the parties
intending to be legally bound, hereby agree as follows:



     1. The Stock Option Agreement is hereby amended by deleting all references to the 2003
Incentive Stock Plan of the Company and is further amended to reflect that the options granted
thereunder are non-qualified options with the cumulative effect that Options are granted outside
the 2003 Stock Incentive Plan. In all other respects, the Stock Option Agreement remains
unchanged.



     2. This Correction may be executed in more than one counterpart, each of which taken together
shall constitute one and the same original.



     3. The Stock Option Agreement as hereby modified is incorporated herein and this Correction
together with the Stock Option Agreement shall constitute one single instrument.



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IN WITNESS WHEREOF, the Company and Craig Bandes have caused this Correction to be executed as
of this March 28, 2005.




	 	 	 	 	 	 	 	 	 
	GLOBALSECURE HOLDINGS, LTD.	 	 	 	Option Holder:
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/  Michael Brigante	 	 	 	By:	 	/s/  Craig Bandes
	 

	 	 
	 	 	 	 	 	 
	Name:

	 	       Michael Brigante	 	 	 	 	 	Craig Bandes
	 

	 	 	 	 	 	 	 	 
	Title:
	 	        CFO	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 






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