Document:

Memorandum of Association

    Exhibit
      10.1

    MEMORANDUM
      OF ASSOCIATION

    OF

    LIMITED
      LIABILITY COMPANY

    

    THIS
      MEMORANDUM is entered into on the 8th of Nov., 2005.

    

    BETWEEN

    

    First
      Party: AL Qudra Holding PJSC, a Joint Stock Company organized under the laws
      of
      the Emirate of Abu Dhabi, having its principal place of business at Abu Dhabi,
      P.O.Box 48111, Abu Dhabi, UAE.

    

    Second
      Party: GSE Systems Inc, a company incorporated under the laws of Delaware USA,
      having its principal place of business at 9189 Red Branch Road, Columbia, MD
      21045, USA.

    

    Third
      Party: Centre of Excellence for Applied Research and Training (CERT), having
      its
      principal place of business at Abu Dhabi, P.O. Box 5464, Abu Dhabi. (Parties
      agreed that CERT shall be replaced by CERT PJSC upon its incorporation or any
      other subsidiary designation by CERT now or in the future)

    

    PREAMBLE:

    

    The
      First, Second and Third Parties with full legal capacity, have agreed to form
      a
      limited liability company among themselves in the United Arab Emirates - Abu
      Dhabi - in accordance with the provisions of the Commercial Companies Law No.
      (8) of 1984 and its amendments on the following terms and
      conditions:

    

    ARTICLE
      1

    

    

    ARTICLE
      1

    

    
      	1.0  	
                 The
                above
                preamble shall form integral part of this
                Memorandum.

            

    

    

    ARTICLE
      2: DEFINITIONS

    

    
      	2.0  	
                
 In
                this
                Memorandum, the following words and expressions shall have the meanings
                appearing opposite to each of them:

            

    

     

    
      	
              2.1

            	
              "The
                Company"
                means the company formed pursuant to this
                Memorandum.

            

    

    

    
      	
              2.2

            	
              "The
                Commercial Register"
                means the Commercial Register of Companies at the Abu Dhabi Municipality
                or any other government department.

            

    

    

    
      	
              2.3

            	
              "The
                Commercial Companies Law"
                means Federal Law No. 8 of J 984 concerning commercial companies
                and its
                amendments.

            

    

     

    
      	
              2.4

            	
              "The
                Ministry"
                means the Ministry of Economy & Planning.

               

            

    

    
      	
              2.5

            	
              "The
                Memorandum"
                means this present Memorandum executed by the three parties in its
                final
                text and its amendments as made pursuant to its provisions and the
                provisions of the law.

            

    

    

    
      	
              2.6

            	
              "The
                Partners"
                mean the parties to this Memorandum and any natural person or corporate
                body which becomes the holder of any share in the capital of the
                Company
                in accordance with the terms of the Memorandum and in conformity
                with the
                provisions of the law.

            

    

    

    
      	
              2.7

            	
              "The
                General Assembly"
                means each annual or extraordinary meeting held by the Partners and
                which
                is duly called for pursuant to the provisions of this Memorandum
                and in
                accordance with the provisions of the
                law.

            

    

    

    
      	
              2.8

            	
              "The
                Board of Directors"
                means the Board of Directors for the management of this
                company.

            

    

    

    
      	
              2.9

            	
              "The
                General Manager"
                means the General Manager appointed and nominated whether pursuant
                to this
                Memorandum or by a resolution of the Board of
                Directors.

            

    

    

    
      	
              2.10

            	
              "The
                Head Office"
                means the Head Office of the Company as determined in this Memorandum
                or
                as decided by the General Assembly in accordance with the provisions
                of
                this Memorandum.

            

    

    

    
      	
              2.11

            	
              "The
                Company Register"
                means the Register maintained by the Company pursuant to the provisions
                of
                article (228) of the Commercial Companies
                Law.

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    ARTICLE
      3: NAME OF THE COMPANY

    

    
      	
              3.0

            	
              The
                three Parties have agreed to name the Company as EMIRATES SIMULATION
                ACADEMY L. L. C.

            

    

    

    ARTICLE
      4: OBJECTS OF THE COMPANY

    

    4.0   
The
      objects of the Company are:

    

    
      	
              4.1

            	
              The
                construction of a training centre in the United Arab Emirates that
                will be
                a "State of the Art" training centre, consisting of training simulators,
                perform training, for industrial facilities in the United Arab Emirates
                and Gulf Cooperation Council.

            

    

    

    
      	
              4.2

            	
              The
                operation, management and development of tins training center, including
                all activities that are related or ancillary
                thereto.

            

    

    

    ARTICLE
      5: HEAD OFFICE OF THE COMPANY

    

    
      	
              5.0

            	
              The
                head office of the Company shall be in the Emirate of Abu Dhabi.
                The
                Company may establish branches or offices in the United Arab Emirates
                and
                abroad by a resolution of the General
                Assembly.

            

    

    

    ARTICLE
      6: DURATION OF THE COMPANY

    

    
      	
              6.1

            	
              The
                duration of the company shall be (10) years, commencing on the date
                of the
                registration and publication of the Company in the Commercial Register
                pursuant to the provisions of the
                law.

            

    

    

    
      	
              6.2

            	
              Such
                period may be extended for a similar, shorter or longer period by
                a
                resolution of the General Assembly at least three months before the
                end of
                the period to be renewed and to take the necessary procedures required
                by
                the law for the registration and publication of such
                renewal.

            

    

    

    ARTICLE
      7: THE CAPITAL OF THE COMPANY

    

    
      	
              7.1

            	
              The
                capital of the Company is AED
                1000,000 (One Million Dirhams)
                divided into 1000
                shares, the value of each share being One Thousand
                Dirhams.

            

    

    

    
      	
              7.2

            	
              The
                First Party shall pay 60% of the said capital, the Second Party shall
                pay
                10% of the same and the Third Party shall pay 30% of the Capital.
                The
                capital of the Company shall be divided among the Partner as the
                following:

            

    

    

    

      
        	
                 

              	
                 

              	
                No.
                  of Shares

              	
                Amount

              	
                 

              
	
                 

              	
                First
                  Party

              	
                600

              	
                600,000

              	
                 

              
	
                 

              	
                Second
                  Party

              	
                100

              	
                100,000

              	
                 

              
	
                 

              	
                Third
                  Party

              	
                300

              	
                300,000

              	
                 

              
	
                 

              	
                Total

              	
                AED

              	
                1,000,000.00

              	
                 

              

      

    
      	
              7.3

            	
              The
                Partners declare that the capital has been paid in full and has been
                deposited in the Company's bank account, as evidenced by the bank
                certificate attached to this Memorandum. It shall not be permissible
                for
                any party or the manager to withdraw any amount from the deposited
                capital
                of the Company until the registration of the Company in the Commercial
                Register.

            

    

    

    
      	
              7.4

            	
              The
                capital may be increased by unanimous approval of the General Assembly
                of
                the Company either by contributing new amounts by the Partners in
                proportion to their shares or by converting part of the statutory
                reserve
                into capital.

            

    

    

    
      	
              7.5

            	
              The
                shares of the national Partner or Partners in the capital of the
                Company
                shall not be less than 51 % of the share
                capital.

            

    

    

    
      	
              7.6

            	
              The
                capital may be reduced In accordance with the provisions of the law
                by a
                resolution of the General Assembly, and such reduction shall not
                apply
                until approved by the competent authority. The capital may not be
                reduced
                below the limit required by law.

            

    

    

    
      	
              7.7

            	
              The
                Company shall have a lien on any Partner's share in the paid up capital
                for the amounts due from the Partner to the
                Company.

            

    

    

    
      	
              7.8

            	
              No
                Partner may mortgage his share in the capital or to create any encumbrance
                thereon and no Partner's share in the Company may be attached as
                a result
                of a debt not related to the
                Company.

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    ARTICLE
      8: TRANSFER OF SHARES AND INCREASE OR REDUCTION OF
      CAPITAL

    

    
      	
              8.1

            	
              Any
                Partner may transfer the whole or part of his share in the Company
                to one
                or more Partners or to a third party through an official instrument
                pursuant to the conditions of this memorandum. Such transfer shall
                be
                entered in the register of the Company and the Commercial Register.
                In any
                event, the transfer must not result in the reduction of the shares
                of the
                national Partner or Partners in the Company to less than 51 % of
                the share
                capital.

            

    

    

    
      	
              8.2

            	
              If
                one of the Partners intends to transfer his share in the Company
                with or
                without consideration to a person who is not a Partner, he must notify
                the
                other Partners of the terms of transfer through the Manager of the
                Company.

            

    

    

    
      	
              8.3

            	
              The
                Manager must notify the other Partners on receipt of such notice.
                Any
                Partner may apply to acquire the share(s) at the agreed price, and
                in the
                event of disagreement on the price the Company's auditor shall value
                the
                shares as at the date of transfer.

            

    

    

    
      	
              8.4

            	
              If,
                within thirty days of the date of the notice, none of the Partners
                exercise their rights to acquire the shares, the Partner shall be
                free to
                dispose of his share.

            

    

    

    
      	
              8.5

            	
              No
                transfer shall be valid until it is duly recorded in the Register
                of
                Partners and the Commercial
                Register.

            

    

    

    
      	
              8.6

            	
              The
                party acquiring any of the Partners' shares shall be bound to accept
                the
                terms and provisions of this Memorandum.
                .

            

    

    

    
      	
              8.7

            	
              If
                more than one Partner exercise the right to acquire the shares, the
                shares
                to be transferred shall be divided between them in proportion to
                the share
                which each of them holds in the capital subject to the provisions
                of
                Article (227) of the Commercial Companies
                Law.

            

    

    

    
      	
              8.8

            	
              In
                any event, the transfer must not result in the reduction of the shares
                of
                the national Partner or Partners in the capital of the Company to
                less
                than 51 % of the total shares nor increase the number of Partners
                to more
                than fifty nor decrease it to less than
                two.

            

    

    

    INCREASE
      OF CAPITAL:

    

    
      	
              8.9

            	
              The
                capital of the Company may, by a resolution of the Extraordinary
                General
                Assembly and in accordance with the provisions of the law and its
                executive regulations, be increased by way of issue of new shares
                or by
                converting the reserve capital into
                shares.

            

    

    

    
      	
              8.10

            	
              In
                the event of issuing new cash shares, the Partners shall have a right
                of
                priority to subscribe for the new shares in proportion to the number
                of
                shares held by each of them in the capital of the
                Company.

            

    

    

    REDUCTION
      OF CAPITAL:

    

    
      	
              8.11

            	
              The
                capital may be reduced by a resolution of the Extraordinary General
                Assembly, provided that the capital may not thereby become .less
                than the
                minimum required by the law.

            

    

     

    
      	
              8.12

            	
              The
                reduction shall be made by the manner decided by the Extraordinary
                General
                Assembly whether by way of reducing the number of shares, redeeming
                or
                reducing some of it or by reducing its nominal value, provided that
                the
                nominal value of each share shall not be less than One Thousand
                Dirhams.

               

            

    

    
      	
              8.13

               

            	
              The
                decision to reduce the capital shall not be valid unless approved
                by the
                relevant competent authority.

            

    

     

    ARTICLE
      9: REGISTERS OF THE COMPANY

    

    
      	
              9.1

            	
              A
                special register of the Partners shall be prepared and kept by the
                Company
                at its main office which should include the names of all Partners,
                their
                domiciles, addresses, nationalities, professions, number and value
                of the
                shares owned by each of them; and details of all dealings carried
                out with
                regard to the shares, together with the date
                thereof.

            

    

    

    
      	
              9.2

            	
              The
                Manager or Managers of the Company shall be jointly liable for maintaining
                the register and for the accuracy of its
                contents.

            

    

    

    
      	
              9.3

            	
              The
                Partners and any interested party shall have the right to peruse
                such
                register.

            

    

    

    
      	
              9.4

            	
              The
                General Manager shall provide the competent authorities in the country
                in
                January of each year with the particulars recorded in the register
                referred to above and the amendments thereto, and the General Manager
                shall be liable for the accuracy of the details recorded in the
                register.

            

    

    

    
      	
              9.5

            	
              The
                Company shall keep at its main office all financial and accounting
                records
                and books, reports and other documents of the Company, also it shall
                maintain all contracts made with others and the original copies of
                the
                minutes of the meetings of the General Assembly together with the
                adopted
                resolutions or those issued by the Board of Directors or the Board
                of
                Managers and also copies of the balance sheets and approvals
                thereof.

            

    

    

    
      	
              9.6

            	
              The
                Company shall also keep all documents and invoices relating to its
                business with the right to destroy them after the lapse of the period
                of
                time provided for by the law of evidence in Commercial and Civil
                matters.

            

    

    

    
      	
              9.7

            	
              The
                entries recorded on computer and saved on special discs shall be
                considered as entries recorded in written
                records.

            

    

    

    
      	
              9.8

            	
              The
                Company shall keep authorized specimen signatures of Partners and
                Managers
                and any person authorized by the Board of Directors as
                signatory.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    ARTICLE
      10: BANKRUPTCY

    

    
      	
              10.1

            	
              If
                one of the Partners becomes bankrupt, the Company shall continue
                after
                dismissing such Partner from the
                Company.

            

    

    

    
      	
              10.2

            	
              If
                the Company is consisting of two Partners only at the time of bankruptcy,
                the Company shall be dissolved and liquidated in accordance with
                the
                provisions of the law.

            

    

    

    
      	
              10.3

            	
              In
                the event of death of any Partner, the Company shall not be dissolved
                but
                the share of the deceased Partner shall be transferred to his legal
                heirs
                and the legatee shall be considered as an
                heir.

            

    

    

    
      	
              10.4

            	
              The
                heirs shall appoint one person to represent them in the Company and
                to
                grant
                him all the powers of each of
                them.

            

    

     

    ARTICLE
      11: MANAGEMENT OF THE COMPANY

    

    
      	
              11.1

            	
              The
                Partners have agreed that the Board of Directors shall be composed
                of
                three (3) Directors each one to be nominated and to represent its
                Partner
                provided that the chairman shall be the representative of Al Qudra
                holding
                company.

            

    

    

    
      	
              11.2

            	
              Any
                of the Partners has the right at any time to replace the Director
                he
                appointed by another one, provided that a notification should be
                sent to
                other Partners within one week from this
                replacement.

            

    

    

    
      	
              11.3

            	
              The
                Directors shall be appointed for a term of (3) years commencing from
                the
                date of registration of the Company in the Commercial Register. Such
                period shall be renewable by a resolution of the General Assembly
                of the
                Company who shall have the right to dismiss any of the members of
                the
                Board of Directors.

            

    

    

    
      	
              11.4

            	
              A
                meeting of the Board shall be held at least once in every quarter
                of a
                calendar year. Extra-ordinary meetings may be called by the Chairman
                upon
                fourteen (14) days prior notice in writing being given to the other
                Directors specifying the proposed date, time and location of the
                meeting
                together with the details of the matters to be discussed. A meeting
                of the
                Board may be called with shorter notice if each of the Directors
                so agrees
                in writing.

            

    

    

    
      	
              11.5

            	
              No
                matter shall be discussed and/or resolved at any meeting of the Board
                save
                for those matters specifically provided for in the notice convening
                that
                meeting.

            

    

    

    
      	
              11.6

            	
              The
                quorum for meetings of the Board shall be vested in all the Directors
                or
                their representatives. All decisions of the Board shall be by unanimous
                vote of the Directors present or
                represented.

            

    

    

    
      	
              11.7

            	
              Each
                Director shall have the right to appoint any other person acceptable
                to
                the Board as his alternate to attend meetings on his behalf. Every
                appointment and revocation of an alternate shall be in writing signed
                by
                the appointer and lodged at the head office of the Company. An alternate
                who is also a Director, in addition to his own vote, shall have one
                vote
                for each Director whom he represents. The attendance of an alternate
                at a
                meeting of the Board shall count as the personal attendance of the
                original Director for all purposes.

            

    

    

    
      	
              11.8

            	
              The
                Board shall have all of the powers necessary for the management of
                the
                Company, representing the Company and signing on its behalf and carrying
                out all acts required by its objects. The following specific acts
                shall
                require a resolution of the Board:

            

    

    

    
      	 	
              a)

            	
              to
                mortgage, pledge, charge or otherwise encumber any or all of the
                Company's
                assets;

            

    

    

    
      	 	
              b)

            	
              to
                give security for or guarantee any debt, liability or obligation
                of the
                Company;

            

    

    

    
      	 	
              c)

            	
              to
                enter into any loan or finance or loan arrangement, on behalf of
                the
                Company;

            

    

    

    
      	 	
              d)

            	
              to
                commit the Company to any capital expenditure in an amount in excess
                of
                Dirhams One Thousand (AED 1,000);

            

    

    

    
      	 	
              e)

            	
              to
                engage the Company in any binding obligation outside the ordinary
                course
                of the business;

            

    

    

    f)     to
      change
      the auditor or the bankers of
      the
      Company;

    

    
      	 	
              g)

            	
              to
                open, operate and close bank accounts appoint or modify the authorized
                signatories and signatory arrangements, in respect of all bank accounts
                of
                the Company;

            

    

    

    h)     to
      alter
      the date of the accounting reference;

    

    
      	 	
              i)

            	
              to
                acquire or establish any business additional to the business of the
                Company or expand or make any material change to the business of
                the
                Company;

            

    

    

    
      	 	
              j)

            	
              to
                take, hold, subscribe in or agree to purchase or acquire shares in
                the
                capital of another company;

            

    

    

    
      	 	
              k)

            	
              to
                amalgamate or merge the Company with any other business or
                company;

            

    

    

    
      	 	
              1)

            	
              to
                take or institute any proceedings for winding up, reorganizing or
                dissolving the Company; or

            

    

    

    
      	 	
              m)

            	
              to
                alter the arrangements for managing the Company as established by
                the
                Board.

            

    

    

    
      	 	
              n)

            	
              to
                appoint or dismiss any of the senior executives of the Company, including
                the General Manager

            

    

    

    
      	
              11.9

            	
              A
                resolution in writing signed by all the Directors (or in lieu of
                any
                Director, by his dully appointed alternate) shall be as valid and
                effective as if it had been passed at a duly convened meeting of
                the
                Board. Any such resolution may consist of several documents communicated
                to each Director (or alternate) by electronic mail, facsimile, registered
                post or courier in like form, each subsequently signed by and correctly
                bearing the name of each and every Director (including any alternate
                wherever appropriate). The Board shall ensure that minutes of their
                meetings are kept at the head office of the
                Company

            

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              11.10

            	
              The
                Board shall have the following specific
                responsibilities:

            

    

    

    
      	 	
              a)

            	
              to
                ensure that the Company accounts are maintained in a proper manner,
                according to approved accounting principles, and kept continually
                up-to-date;

            

    

    

    
      	 	
              b)

            	
              to
                ensure that within thirty (30) days of the end of each month, following
                the Commencement Date, each Partner is sent a financial statement
                and
                management account, in relation to the business of the
                Company;

            

    

    

    
      	 	
              c)

            	
              to
                ensure that, the Company is carried on in a proper, prudent, commercial
                and businesslike manner;

            

    

    

    
      	 	
              d)

            	
              to
                ensure that the insurable assets of the Company are insured and kept
                insured with an insurance company of repute and in their full replacement
                value, against all risks that would usually be insured against by
                the
                operator of a business similar to the Company and, in addition, take
                out
                indemnity insurance in such amount and against such risks as the
                Board,
                shall think necessary or prudent;

            

    

    

    
      	 	
              e)

            	
              to
                confirm the appointment of a General Manager and to select and appoint
                other senior managers of the
                Company;

            

    

    

    
      	 	
              f)

            	
              to
                issue a Power of Attorney to the General
                Manager;

            

    

    

    
      	 	
              g)

            	
              within
                three (3) months of the end of each account reference date, to consider
                and approve the Company's audited
                accounts;

            

    

    

    
      	 	
              h)

            	
              to
                appoint the Company's bankers and to issue a bank
                mandate;

            

    

    

    
      	 	
              i)

            	
              to
                consider and approve' the operating costs of the Company, as estimated
                by
                the General Manager;

            

    

    

    
      	 	
              j)

            	
              to
                consider and approve the work programs and budgets to be submitted
                to the
                Board by the General Manager;

            

    

    

    
      	 	
              k)

            	
              to
                approve training programs for staff of the
                company;

            

    

    

    
      	 	
              1)

            	
              to
                approve advertising and promotional campaigns and material in respect
                of
                the Company and its products.

            

    

    

    
      	
              11.11

            	
              Subject
                to 11, 10 herein, the Board shall delegate its powers of management
                in
                respect of the day-to-day management to the General Manager. The
                General
                Manager shall at all times be responsible and subject to the control
                of
                the Board. The Board has decided to appoint the General Manager of
                the
                Company for a term of one year, renewable for similar periods by
                a
                resolution of the Board.

            

    

    

    
      	
              11.12

            	
              The
                General Manager shall be responsible for the day-to-day management
                of the
                Company and he shall have all powers not reserved to the Board. His
                powers
                shall include (but not limited to) the
                following:

            

    

    

    
      	 	
              (a)

            	
              representing
                the Company before all official and private authorities whether inside
                the
                country or abroad;

            

    

    

    
      	 	
              (b)

            	
              renewing
                all required licenses and executing all documents necessary for the
                Company and carrying out its business in a continuous and proper
                manner;

            

    

    

    
      	 	
              (c)

            	
              signing
                all application forms and documents required for the incorporation
                of the
                Company and maintaining licenses necessary for running the business
                of the
                Company and representing the Company before any Local or Federal
                Authority
                or Department in the United Arab
                Emirates;

            

    

    

    
      	 	
              (d)

            	
              appointing
                and dismissing managerial and other employees of the
                Company;

            

    

    

    
      	 	
              (e)

            	
              establishing
                and maintaining the Company's accounting systems and financial controls
                in
                connection with the business of the Company and ensuring that the
                Company
                accounts are maintained according to established accounting principles
                and
                practices;

            

    

    

    
      	 	
              (f)

            	
              determining
                the operating costs and capital requirements of the Company and preparing
                work programs and budgets for approval by the
                Board;

            

    

    

    
      	 	
              (g)

            	
              supervising
                and controlling the performance by the Company's employees of their
                duties
                and obligations within their respective job descriptions and ensuring
                that
                the Company's assets and finances are sufficiently protected in order
                to
                avoid any mismanagement or misappropriation of
                funds;

            

    

    

    
      	 	
              (h)

            	
              generally
                monitoring the Company's performance on a day-to-day basis and taking
                whatever steps may be necessary from time to time to improve the
                performance and profitability of the Company;
                and

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
            	
              (i)

            	
              
                reporting
                  to the Board at its regular meetings and otherwise as and when
                  called upon
                  to do so.

              

            

    

     

    ARTICLE
      12: THE FINANCIAL YEAR

    

    
      
        	
                12.1

              	
                The
                  financial year of the Company shall commence on January 1st and
                  shall end
                  on December 31st of the same year, with the exception of the first
                  financial year, which shall commence on the date of the registration
                  of
                  the company in the Commercial Register and end on December 31st
                  of the
                  following year.  

              

      

       

    

    ARTICLE
      13: THE GENERAL ASSEMBLY

    

    
      	
              13.1

            	
              The
                Company shall have a General Assembly composed of all the Partners.
                The
                General Assembly shall be convened at the invitation of the General
                Manager at least once every year on the date and at the place to
                be
                determined by the General Manager during the four months following
                the end
                of the financial year.

            

    

    

    
      	
              13.2

            	
              The
                General Manager must call a General Assembly if so required by a
                number of
                Partners holding not less than one quarter of the
                capital.

            

    

    

    
      	
              13.3

            	
              Invitations
                to attend the General Assembly shall be sent by registered letters
                with
                acknowledgement of receipt addressed to each Partner at least twenty-one
                days before the date of the meeting. The invitations must include
                the
                particulars of the agenda and the place, date and time of the
                meeting.

            

    

    

    
      	
              13.4

            	
              Every
                Partner shall have the right to attend a General Assembly irrespective
                of
                the number of shares he holds. A Partner may, by proxy, delegate
                another
                Partner other than the Managers to represent him at the specified
                meeting
                of the General Assembly. Each Partner shall have a number of votes
                equal
                to the number of shares he owns or
                represents.

            

    

    

    
      	
              13.5

            	
              The
                agenda for the annual General Assembly must include the following
                matters:

            

    

    

    
      	 	
              a)

            	
              review
                of the report of the General Manager on the Company's activities
                and
                financial position during the year, the report of the Board of Supervision
                and the auditor's report;

            

    

    

    
      	 	
              b)

            	
              discussion
                and adoption of the balance sheet and profit and loss
                account;

            

    

    

    
      	 	
              c)

            	
              detennination
                of the share in the profits to be distributed among the Partners
                and the
                share of each of them;

            

    

    

    
      	 	
              d)

            	
              nomination
                and appointment of the board of directors , the managing director
                and the
                auditors for the next year and determination of their
                remuneration;

            

    

    

    
      	 	
              e)

            	
              any
                other matter within its competence approved by the absolute majority
                of
                the partners to be included in the
                agenda;

            

    

    

    
      	 	
              f)

            	
              Every
                Partner or his representative shall have the right to discuss matters
                included in the agenda. The Managers are obliged to reply to any
                Partner's
                question provided it is not detrimental to the Company's interest.
                The
                General Assembly shall have the power to settle any dispute in this
                regard;

            

    

    

    
      	 	
              g)

            	
              Any
                of the Partners may review the minutes of the meetings and the resolutions
                adopted therein personally or by proxy. They may also review the
                Company's
                balance sheet, profit and loss account and annual report and discussing
                the same with the auditors.

            

    

    

    
      	
              13.6

            	
              The
                quorum for the meetings of the General Assembly shall be constituted
                by
                the presence all the Partners.

            

    

    

    
      	
              13.7

            	
              If
                such majority is not achieved, a second meeting shall be convened
                within
                the twenty-one days following the first meeting. The quorum for the
                second
                meeting shall be constituted by the presence of Partners representing
                75%
                of the capital. Resolutions of this meeting shall be adopted by the
                simple
                majority of the Partners representing not less than 75% of the capital
                of
                the Company.

            

    

    

    
      	
              13.8

            	
              Voting
                on resolutions shall be by show of hands and the result shall be
                recorded
                in the minutes of the meeting and signed by the directors, attending
                partners or their representatives as well as by the attending
                auditors.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ARTICLE
      14: THE EXTRA¬ORDINARY GENERAL ASSEMBLY

    

    
      	
              14.1

            	
              Powers
                of the Extraordinary General Assembly: The Extraordinary General
                Assembly
                shall have authority to consider and discuss any matter which are
                beyond
                the scope of the agenda of the Ordinary General Assembly, including
                but
                not limited to:

            

    

    

    a)
      amendment of the company's memorandum of association.

    

    b)
      increase or reduction of the capital of the company.

    

    c)
      to
      dismiss the Manager before the end of his term.

    

    
      	
              14.2

            	
              Convention
                of Extraordinary General
                Assembly:

            

    

    

    Extraordinary
      General Assembly shall be convened in the same manner prescribed for the
      Ordinary General Assembly whenever necessary.

    

    
      	
              14.3

            	
              Resolutions
                of the Extraordinary General
                Assembly:

            

    

    

    The
      resolutions of the Extraordinary General Assembly shall be adopted
      unanimously.

    

    
      	
              14.4

            	
              Without
                prejudice to the rights of third parties acting in good faith, a
                resolution adopted at a General Assembly in violation of the provisions
                of
                the Commercial Companies Law concerning the limited liability companies
                or
                this Memorandum shall be void.

            

    

    

    
      	
              14.5

            	
              In
                this event, only the Partners who had objected to the adoption of
                the said
                resolution or those who were unable to object thereto for acceptable
                reasons, may request the nullification of the
                resolution.

            

    

    

    ARTICLE
      15: DISTRIBUTION OF PROFITS AND LOSSES

    

    
      	
              15.1

            	
              The
                Company shall allocate 10% (Ten Percent) of its net profits each
                year to
                create a statutory reserve. The Partners in the General Assembly
                may
                allocate additional reserves. The Partners may resolve that the allocation
                of net profits to the statutory reserve be discontinued when the
                reserve
                reaches more than 50% of the capital of the
                Company.

            

    

    

    
      	
              15.2

            	
              The
                net profits shall be distributed among the partners in proportion
                to their
                shareho1ding in the capital after deducting all overheads, costs
                and
                depreciations as estimated by the
                auditors.

            

    

    

    
      	
              15.3

            	
              In
                the event of losses the same shall be covered by the statutory reserve
                as
                much as possible by a resolution of the General Assembly. Should
                the
                losses reach half of the actual capital at the time of sustaining
                such
                losses, the Directors shall propose to the General Assembly of the
                Partners to dissolve the Company. The resolution to dissolve the
                Company
                must be adopted by the unanimous approval required to amend the company's
                memorandum.

            

    

    

    
      	
              15.4

            	
              If
                the loss reaches three quarters of the capital, the Partners holding
                one
                quarter of the capital may request to dissolve the
                Company.

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      16: THE AUDITORS

    

    
      	
              16.1

            	
              The
                Company shall have one or more auditors to audit the Company's balance
                sheet, accounts and final results of the annual accounts. The auditors
                are
                to be nominated by the Board of Directors and appointed by the General
                Assembly of the Company. The auditors shall be subject to the same
                provisions concerning auditors of joint stock companies pursuant
                to the
                Commercial Companies Law.

            

    

    

    
      	
              16.2

            	
              Auditors
                shall be nominated by the Board of Directors from amongst those Audit
                Firms of good reputation and possessing the appropriate qualifications
                and
                registration.

            

    

    

    
      	
              16.3

            	
              The
                Auditors shall have the right of access to the accounts, books and
                accounting records of the Company and shall be entitled to attend
                and
                speak at all meetings of the General Assembly and to answer and reply
                to
                the Partners' questions and
                inquires.

            

    

    

    
      	
              16.4

            	
              The
                Auditors shall be liable towards the Partners and others for any
                negligence in carrying out their duties and they may be liable for
                civil
                and criminal charges for committing gross negligence while performing
                their duties.

            

    

    

    ARTICLE
      17: PERSONALITY OF THE COMPANY

    

    
      	
              17.1

            	
              The
                Company shall have a corporate, legal and financial personality separate
                from that of its Partners and their financial obligations and each
                of the
                Partners shall only be liable to the extent of his share(s) in the
                capital
                Unless law provides otherwise.

            

    

    

    ARTICLE
      18: VARIATION OF THIS MEMORANDUM

    

    
      	
              18.1

            	
              It
                shall not be permissible to amend this Memorandum or to increase
                or reduce
                the capital of the Company nor shall it be permissible to increase
                the
                obligations of the Partners except in accordance with the provisions
                of
                this Memorandum and the law. The capital shall not be reduced below
                the
                minimum amount required by the law for such
                company.

            

    

    

    
      	
              18.2

            	
              Manager
                of the Company must serve and deposit the legal documents of any
                amendment
                as mentioned above and no amendment shall be valid and binding on
                the
                Partners and the others unless it is recorded in the Commercial
                Register.

            

    

    

    ARTICLE
      19: DISSOLUTION AND LIQUIDATION OF THE COMPANY

    

    
      	
              19.1

            	
              The
                Company shall be dissolved for any of the following
                reasons:

            

    

    

    
      	 	
              a)

            	
              The
                expiry of the period and the non-agreement to renew the
                same;

            

    

    

    
      	 	
              b)

            	
              The
                unanimous decision by the Partners to dissolve the
                Company;

            

    

    

    
      	 	
              c)

            	
              Adoption
                of a resolution by the General Assembly to dissolve the Company if
                the
                losses exceed 50% of its actual capital at that
                date;

            

    

    

    
      	 	
              d)

            	
              Upon
                a decision of a Competent Court to dissolve the
                Company.

            

    

    

    
      	 	
              e)

            	
              The
                Company shall be dissolved and liquidated in accordance with the
                relevant
                provisions of the Commercial Companies
                Law,

            

    

    

    ARTICLE
      20: GOVERNING LAW

    

    
      	
              20.1

            	
              Matters
                not provided for in this Memorandum shall be subject to the applicable
                laws of the United Arab Emirates, particularly the Commercial Companies
                Law and its amendments and the decisions made in implementation thereof.
                .

            

    

    

    ARTICLE
      21: DISPUTES

    

    
      	
              21.1

            	
              Any
                dispute that may arise during the existence of the Company or during
                its
                liquidation among the Partners per se or between the Partners and
                the
                Company or the liquidators regarding any matters concerning the Company
                and its business shall be settled by the competent Courts of Abu
                Dhabi.

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    ARTICLE22:
      MISCELLANEOUS

    

    
      	
              22.1

            	
              The
                name of the Company as a Limited Liability Company shall be written
                in a
                clear and legible manner together with its main address, capital,
                number
                and date of registration in the Commercial Register on all its printed
                materials, letterheads, seals, commercial addresses, advertisements
                and
                contracts made by the Company.

            

    

    

    
      	
              22.2

            	
              Notices
                sent by the Company to the Partners or vice versa shall be in the
                form of
                registered recorded delivery letters to the address of each Partner
                as
                recorded in the Register of Partners. Any Partner who intends to
                change
                his address shall forthwith notify the General Manager in writing
                in order
                to record such new address in the Register of
                Partners.

            

    

    

    
      	
              22.3

            	
              All
                expenses of incorporation and registration of the Company shall be
                charged
                to the general expenses account.

            

    

    

    
      	
              22.4

            	
              The
                incorporation and registration of the Company shall be made by the
                person
                authorized by the three Parties for such
                purpose.

            

    

    

    
      	
              22.5

            	
              This
                Memorandum and any amendments thereto shall be written in the Arabic
                Language.

            

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have duly executed this Memorandum in the City of Abu Dhabi - United
      Arab Emirates on the 8th day of November  2005.

    

    FIRST
      PARTY AI Qudra Holding (p.J.S.C.)

    

    /s/
      Eng. Salah Salah Salem Al Shamsi

    Eng.
      Salah Salah Salem Al Shamsi

    Chairman
      of the Board of Directors

    

    

    SECOND
      PARTY: GSE Systems Inc.

    

    /s/
      Hal D. Paris

    Mr.
      Hal
      D. Paris

           
Senior
      Vice
      President

    

    

    THIRD
      PARTY: Centre of Excellence for Applied Research and Training
      (CERT)

    

    /s/
      Dr.
      Tayeb Kamali, 

    Dr.
      Tayeb
      Kamali

    Vice
      ChairmanESA Contract

     

    

       

      Exhibit
        10.2 

       

      [***]
        Indicates that a confidential portion of the text of this agreement has been
        omitted pursuant to a request for confidential treatment which has been
        separately filed with the Securities and Exchange Commission.

       

    

    Supply
      Agreement Contract

     

    

    This
      Supply Agreement is made this 3rd day of Jan., 2006, by and between Emirates
      Simulation Academy, a LLC established under the laws of the United Arab Emirates
      and having offices at Abu Dhabi (Customer) and GSE Power Systems, Inc.
      established under the laws of the state of Delaware, USA and having offices
      at
      9189 Red Branch Road, Columbia MD, USA (GSE) for the supply of the Simulators,
      Training Programs, and Technology Transfer Program for the Emirates Simulation
      Academy, LLC UAE (ESA) to be constructed in Abu Dhabi, UAE.

    

    1.
      SCOPE OF SUPPLY & CONTRACT DOCUMENTS:
      GSE
      shall perform all of services and deliveries for hardware, software, firmware,
      technical data, and/or services ("Goods") as described herein and a part of
      this
      Contract. This Contract consists of:

    

    
      	a.  	
              GSE
                License and technology Transfer Agreement which is made a part of
                this
                Contract as Attachment 1. 

            

    

    
      	b.  	
              These
                terms and conditions 

            

    

    

    

    2.
      LICENSE AGREEMENTS:
      As a
      condition precedent to GSE’s obligations to deliver GSE Software, Customer
      agrees that, prior to shipment, it will execute the appropriate GSE Software
      License Agreement and any other third party software licenses that may be
      required for software, documentation and firmware supplied. The License
      Agreement is provided as Attachment 1 hereto.

    

    3.
      CHANGE ORDERS:
      The
      prices for any extras or changes to the scope of work (in the Offer or as agreed
      upon by the parties in writing) or modifications to the payment or performance
      schedule, will be agreed upon in writing before either party will be obligated
      to proceed with such changes. Performance of any change will not waive any
      claims for equitable adjustment in price and/or schedule.

    

    4.
      SHIPMENT AND DELIVERY:

    

    A.
      TRANSPORTATION: Unless otherwise specified, all prices are based on delivery,
      installation, and testing at the ESA facility in Abu Dhabi, UAE. Title (other
      than for licensed materials) and risk of loss will pass from GSE to Customer
      upon delivery. 

    

    B.
      RISK
      OF LOSS: Insurance coverage of GSE Goods at Customer's site prior to final
      acceptance, or of Customer's equipment at GSE’s site, will be provided by the
      party having custody and control of the Goods regardless of the delivery
      term.

    

    C.
      DELIVERY SCHEDULE: Schedule dates will be agreed on by the parties and are
      contingent upon prompt receipt by GSE of all necessary approvals, information,
      and software licensing agreements on such dates or with such lead times as
      may
      be specified by GSE. GSE will use reasonable efforts to achieve the schedule
      dates. 

    

    D.
      PACKING AND CRATING: Goods will be packed in accordance with GSE’s standard
      commercial practice. 

     

    E.
      SHIPPING: GSE must have complete shipping instructions and documentation
      requirements from Customer at least thirty (30) days prior to shipment. GSE
      will
      use the freight forwarder of its choice unless Customer names an acceptable
      freight forwarder.

    

    F.
      SHIPMENT DELAYS: If shipment of Goods is delayed at the request of, or due
      to
      acts or omissions of Customer, GSE may store such Goods in any commercially
      reasonable manner at Customer's sole risk and expense. Any payments that would
      be due GSE, had such Goods been shipped as scheduled, will be considered due
      and
      owing, and GSE may invoice Customer on schedule.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    5.
      ON-SITE SERVICES: 

    

    A.
      TRAVEL
      AND LIVING ("T&L"): Included in Offer Price

    

    B.
      WORKING CONDITIONS: GSE reserves the right for its personnel to refuse to work
      under hazardous conditions. The parties will reach agreement on the hazardous
      situation prior to beginning such work. Necessary staging and rigging will
      be
      erected by, and at the expense of, Customer. GSE personnel will comply with
      reasonable plant safety regulations where applicable. Customer will provide
      any
      required protective clothing or equipment. 

    

    C.
      TECHNICAL SUPPORT. Unless otherwise mutually agreed, GSE is responsible for
      receiving, inspecting, storing, wiring, piping, installing, testing,
      commissioning and start-up of the Goods. 

    

    6.
      PRICE & PAYMENT TERMS. 

    

    The
      Total
      Contract Price for Software and Labor: $15,117,905 USD which
      includes:

    

    
      	a)  	
              Five
                (5) Training Simulators, specified
                below

            

    

    
      	b)  	
              Training
                Program Design

            

    

    
      	c)  	
              Simulator
                Training Programs

            

    

    
      	d)  	
              Classroom
                Instruction & Online Courses 

            

    

    

    The
      hardware portion, priced separately, may be exercised at the option of ESA:
      $1,458,000 USD which includes: 

     

    
      	a)  	
              The
                computer systems and DCS systems for the five (5) Training Simulators,
                specified below.

            

    

     

    [***]

    

    7.
      TAXES:
      GSE
      shall be responsible for the payment of all present and future taxes, duties,
      tariffs, fees and other charges imposed on GSE by the U.S. Government or any
      U.S. agency thereof with regard to GSE’s undertakings hereunder. Customer shall
      be responsible for the payment of all other present and future taxes, duties,
      tariffs, fees and other charges imposed on Customer or GSE by any governmental
      authority or agency thereof including, but not limited to, any taxes, duties,
      tariffs, fees or other charges imposed on GSE by Customer’s government or any
      agency thereof.

    

    8.
      CUSTOMER INFORMATION:
      Customer
      will provide GSE with accurate and complete information regarding Customer's
      processes and requirements in order to permit GSE to successfully undertake
      and
      complete the work. Where Customer information is incomplete or incorrect,
      resulting in delay or extra work, GSE is entitled to adjustment by change
      order.

    

    9.
      DOCUMENT APPROVAL:
      GSE may
      request that the Customer review documents developed by GSE for conformity
      with
      Customer requirements/ specifications. Unless Customer advises GSE otherwise
      in
      writing within thirty (30) days after submission, GSE may consider the documents
      approved and 

    proceed
      with work. Changes thereafter, made at the direction of Customer, will entitle
      GSE to adjustment by change order.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    10. PROVISIONAL
      ACCEPTANCE:
      Provisional acceptance occurs at completion of the on-site acceptance testing
      at
      the Customer facility. Final Acceptance occurs after the successful completion
      of the warranty period described in Section 11. After final acceptance,
      Customer's sole and exclusive rights and remedies for any nonconformity are
      under the warranty provision provided herein.

    

    11. WARRANTY:
      GSE
      warrants that Goods will conform in all material respects to applicable GSE
      specifications. Services will be performed in a workmanlike manner and will
      conform to Customer-approved drawings and documents submitted by GSE. Unless
      otherwise specified, the warranty period is one (1) year from date of on-site
      acceptance for systems and GSE Software, and ninety (90) days from (i) receipt
      for spares and upgrades and (ii) completion of services. Warranty of third
      party
      products is offered on a pass through basis unless otherwise
      specified.

    

    A.
      RETURN
      TO FACTORY: GSE will, at its option and expense, repair or replace any portion
      of the Goods that does not conform to the warranty for which GSE is given
      written notice during the warranty period. Any Goods will be returned to GSE,
      DDP GSE’s facility. 

    

    B.
      EXCLUSIONS: Repairs and replacements caused by inadequate preventive
      maintenance, normal wear and usage, fault of Customer or others, power sources
      supplied by others, attachments, features, or devices not specifically
      authorized in writing by GSE, unauthorized modifications or alteration of
      hardware, software or firmware, unsuitable environmental conditions or improper
      software loading, are expressly excluded from warranty coverage. Unauthorized
      modifications void the warranty for any affected portion of the
      system.

    

    C.
      This
      warranty is the only warranty made by GSE and is the exclusive remedy of
      Customer for defects in Goods. It will not be affected by, and no obligations
      or
      liability will arise from, GSE’s rendering of technical or other advice or
      service in connection with the Goods. GSE
      MAKES NO OTHER WARRANTIES OR CONDITIONS, EITHER EXPRESS, IMPLIED OR STATUTORY,
      INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
      FITNESS FOR PARTICULAR PURPOSE. 

    

    12.
      FORCE MAJEURE:
      Neither
      party shall be liable for delays, interruptions or failures in performing its
      obligations arising from any act, delay or failure to act in the issuance of
      permits or licenses, or arising out of or in connection with acts of God, acts
      of the government in either its sovereign or contractual capacity, war,
      accidents or disruptions such as fire, explosion or equipment breakdown, labor
      difficulties including strikes or slowdowns, or any other cause beyond its
      reasonable control and without its fault or negligence. The party experiencing
      the force majeure will notify the other party promptly.

    

    13.
      CUSTOMER SUSPENSION & DELAY:
      Retaining all other rights or remedies, if GSE’s performance is delayed by
      Customer's suspension of work, in whole or in part, or by any act or omission
      of
      Customer, the time for performance will be extended by the period of time
      required by GSE to return to the state of performance that existed before the
      delay. If the delay or suspension continues for sixty (60) days or more, GSE
      has
      the right to cancel or renegotiate the Contract. Customer will pay an equitable
      adjustment based on a claim submitted by GSE for all reasonable costs, damages
      and expenses incurred by GSE incident to the delay or suspension.

    

    14.
      TERMINATION:
      In the
      event of a material breach, if a cure has not been completed or at least
      satisfactorily commenced within thirty (30) days of receiving written notice
      detailing the breach or failure, the non-breaching party, by written notice
      to
      the breaching party, may terminate this Contract. Customer's wrongful
      termination or purported termination will be considered a material breach.
      GSE
      may, by written notice to the Customer, at any time, and without prejudice
      to
      any other rights or remedies provided by law or contained herein, suspend
      performance of this Contract if Customer has failed to make payments due after
      ten (10) days written notice. Prior to any resumption of work, GSE and Customer
      will agree upon a change order for any adjustments to the performance dates,
      payment schedule and price that result from the suspension. 

    

    15. LIMITATION
      OF LIABILITY: GSE’s
      and
      GSE’s licensors’ maximum liability to Customer and any third party, and
      Customer's exclusive remedy for any cause whatsoever, regardless of the form
      of
      action, in contract or in tort, including negligence, will be limited to the
      recovery of actual damages up to any amounts paid by Customer with respect
      to
      the Contract. Notwithstanding the above, Customer and GSE will be liable to
      each
      other for personal injuries caused by the liable party's fault, or the fault
      of
      its employees, contractors, and agents during work performed at Customer's
      premises. NEITHER
      PARTY WILL BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES,
      EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
      DAMAGES.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    16.
      NOTICE:
      Whenever
      these Terms provide for the giving of notice, such notice will be sent in
      writing to the other party. Notices will be delivered personally, by facsimile
      transmission, or by prepaid registered or certified mail and will be deemed
      to
      be duly served if personally delivered or by facsimile transmission, at the
      time
      of delivery, or, if delivered by prepaid registered or certified mail, three
      (3)
      days after posting thereof. 

    

    17.
       COMPLIANCE
      WITH LAWS:
      Customer
      will secure or pay for any registration, licenses, permits, or other
      requirements of any governmental bodies applicable to Customer's industry or
      location. Any cost or expenses incurred by GSE in meeting such requirements
      will
      be charged to Customer.

    

    18.
      CHOICE OF LAW/JURISDICTION: This
      Contract will be governed by the laws of the Emirates of Abu Dhabi and the
      Federal Laws of United Arab Emirates. 

    

    19.
      LANGUAGE:
      The
      English language shall be controlling in all respects. No translation of this
      Contract shall be of any force or effect in contract interpretation or
      determination of intent.

    

    20.
      EXPORT CONTROL:
      The
      Goods may require a validated license from the U.S. government before export
      or
      reexport. Customer will comply with all applicable export control laws and
      assures GSE that, without prior government authorization, it will not knowingly
      export or reexport, directly or indirectly, any Goods to any recipient,
      destination or country to which such export or reexport is restricted or
      prohibited, or for activities related to the design, production, or use of
      missiles or chemical or biological weapons. Customer will obtain licenses
      required for its own export or reexport of Goods. 

    

    The
      Customer will assist GSE in obtaining necessary information for any required
      export licenses, clearances or registrations. Customer will obtain any necessary
      import certificate in sufficient time for GSE to export on schedule. The
      granting of all required import or export licenses is a condition precedent
      to
      GSE’s delivery. GSE will have no liability to Customer if any licenses or
      approvals are denied. 

    

    21.
      ASSIGNMENT:
      Neither
      party will assign or otherwise transfer all or any portion its rights or
      obligations hereunder without the advance written consent of the other party.
      

    

    22.
      GENERAL: No
      modification of any term or condition will be effective unless in writing and
      signed by the parties. Invalidity of any Term, in whole or in part, will not
      affect the validity of any other Term. Any failure to enforce any of these
      Terms
      will not constitute a waiver. 

    

    23.
      INDEPENDENT CONTRACTORS: The
      performance of all obligations under the Contract shall be by the parties as
      independent contractors and not as agents or partners of the other
      party.

    

    24.
      APPOINTMENT OF REPRESENTATIVES: Each
      party shall designate a representative authorized to receive notices and to
      act
      on its behalf and, when necessary, shall designate at least one alternate person
      to whom all communications shall be directed.

    

    25.
      CONFIDENTIALITY: Each
      party agrees to keep confidential any information which the other party
      identifies as Confidential Information. The receiving party shall not disclose
      any such Confidential Information to a third party without the disclosing
      party’s prior written consent. GSE will mark as confidential or proprietary any
      Confidential Information provided to Customer. All such Confidential Information
      shall be kept in confidence by Customer and shall not be disclosed to third
      parties without GSE’s prior written consent, unless Customer deems such third
      parties to require the Confidential Information for the effective performance
      of
      the Contract and such third parties agree to protect GSE’s Confidential
      Information consistent with this provision.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    26.
      DEFINITIONS: (a)
      The
      term “GSE Software” means the Software developed by GSE and described in the
      applicable Scope of Work or applicable Software License Agreement. (b) The
      term
“Confidential Information” is defined as all non-public data or information that
      the disclosing party desires to protect from unrestricted disclosure or
      competitive use. Confidential Information shall include, but is not limited
      to,
      technical data, designs, know-how, trade secrets, drawings, software source
      code, and business information (including sales, financial, customer, or
      contractual information) that is designated in writing as proprietary or
      confidential, or, if orally disclosed, is confirmed in writing within thirty
      (30) days of such oral disclosure.

    

    27.
      OWNERSHIP: The
      GSE
      Software is protected by U.S. copyright laws and international treaty
      provisions. All GSE Software, including any derivatives or improvements thereof,
      is owned by GSE.

    

    28.
      OPTIONS: The
      Desalination simulator will be constructed in UAE with local engineers under
      GSE
      management and training as part of the Technology Transfer Program, the cost
      savings will be deducted from the total contract price.

    

    The
      Desalination simulator hardware portion and other potential hardware components
      that may be purchased in UAE that do not affect delivery schedules, will be
      passed on to ESA.

    

    29.
      ENTIRE AGREEMENT:
      This
      Contract, including all attachments and documents hereto and incorporated herein
      by reference, constitutes the entire agreement between the parties and
      supersedes all prior proposals, agreements, understandings and negotiations,
      oral and written, and any printed terms on Orders or invoices issued previously
      or in the future, concerning the matters specified herein. No course of dealing
      or usage of trade or course of performance may be used to add to or amend the
      plain meaning of this Contract.

     

    Agreed
      to by:

     

    Emirates
      Simulation Academy:   Emirates
      Simulation Academy:

    

    

    BY:
      _/s/
      Salah
      Elshamsi ____   BY:
      __/s/
      Tayeb Kamali ______

    

    NAME:
      Salah
      Elshamsi_____   NAME:
      _Tayeb
      Kamali_______

    

    TITLE:
      _Chairman_________   TITLE:
      _Vice
      Chairman______

    

    DATE:
      _Jan. 3, 2006________   DATE:
      _ Jan. 3, 2006_______

    

    

    Emirates
      Simulation Academy:   GSE
      Power
      Systems, Inc.:   

    

    

    BY:
      __/s/
      Hal Paris_________   By:____/s/
      John V. Moran____

     

    NAME:
      _Hal
      Paris_________   NAME:__John
      V. Moran_____

    

    TITLE:
      __ESA
      Directors_____   TITLE:__CEO_____________

    

    DATE:
      __Dec. 1, 2005_______   DATE:__Dec.
      1, 2005 _______

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