Document:

EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of the 15st day of June, 2004, by and between Universal Guardian Holdings. Inc., a Delaware corporation (the “Company”) and Marian Barcikowski (the “Executive”).  The Company and Executive are referred to herein as a “Party” and, collectively, as the “Parties.”

WHEREAS, Executive has offered to contribute his experience and expertise to assist in the management and be responsible for the accounting operations and financials of the Company and its business; 

WHEREAS, the Company wishes to retain the services of Executive and his experience and expertise; and

WHEREAS, the Company and Executive desire to enter into an employment agreement under the terms and subject to the conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

1.

Term of Employment.

The term of Executive’s employment hereunder shall commence on June 15, 2004, and, unless earlier terminated by the Company at will or for cause consistent with paragraph 6 below, shall continue for a period of two (2) years from such date (“Term”). 

2.0

Position and Duties.

2.1      Position.  Executive shall be employed by the Company as its Director of Finance and Comptroller.

2.2        Duties.  Executive shall perform all services and acts necessary or advisable to fulfill the duties and responsibilities of the position as Director of Finance and Comptroller and shall render such services on the terms set forth herein.  Executive shall report to the Chief Executive Officer of the Company.  Except for sick leave, vacations, and excused leaves of absence, Executive shall, throughout the term, devote substantially all his working time, attention, knowledge and skills faithfully and to the best of his ability, to the duties and responsibilities of his position in furtherance of the business affairs and activities of the Company and its subsidiaries and affiliates.  Executive agrees to spend a minimum of four days per week at the Company’s headquarters in Newport Beach and further agrees to relocate to an area in Southern California to enable Executive to attend the Company’s offices on a daily basis on or 

- 1 -

BARCIKOWSKI EMPLOYMENT CONTRACT

before June 15, 2005. 

- 2 -

BARCIKOWSKI EMPLOYMENT CONTRACT

3.0

Compensation.  

3.1

Base Salary.  During the Term, as compensation for his services hereunder, Executive shall receive a salary at an annualized rate of no less than One Hundred Twenty Thousand Dollars ($120,000.00) per year (“Base Salary”), which amount shall be paid in monthly or bi-monthly installments by the Company in accordance with the Company’s normal payroll practices and procedures, less such deductions or offsets required by applicable law or otherwise authorized by Executive. 

3.2

Discretionary Bonus.  Executive shall be eligible to receive from the Company an annual performance bonus (the “Annual Bonus”); provided, that the amount, if any, of the actual Annual Bonus paid to Executive shall be at the sole discretion of the Company based upon the Company’s evaluation of whether Executive has achieved the targets and performed the duties as Director of Finance and Comptroller in a manner warranting an Annual Bonus.  Any Annual Bonus payable under this Section 3.2 shall be deemed not to accrue until the date the amount thereof is determined by the Company.  If an Annual Bonus is awarded Executive by the Company, the bonus shall be payable within thirty (30) days of the end of the Company’s fiscal year and shall be payable to Executive in accordance with the Company’s normal annual bonus payment practices and procedures.

4.0

Stock Option. 

Grant.  As and for additional consideration for the services to be provided by Executive hereunder, the Company shall permit Executive to fully participate in a stock option for the purchase of One Hundred Thousand (100,000) shares of common stock with a two year vesting schedule at a strike price of the closing market price on June 15, 2004.  The option shall be memorialized in an Incentive Stock Option Agreement issued pursuant to the Company’s Incentive Stock Option Plan.

5.0

Additional Benefits.

5.1

Employee Benefits.  During the Term, Executive and his family, which shall consist of Executive and Executive’s wife, will be entitled to participate in the Company’s health plan, the entire cost of which shall be borne by the Company.  Any additional health benefits for immediate family members shall be subject to the eligibility requirements and the other general terms of the Company’s health plan.

5.2

Expenses.  The Company shall reimburse Executive for expenses reasonably incurred by him in furtherance of his duties hereunder, including, travel, meals, and accommodations (not including Executive’s commute to the Company’s offices in Newport Beach), upon submission by him of receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt or as may be required in order to 

- 3 -

BARCIKOWSKI EMPLOYMENT CONTRACT

permit such payments to be taken as proper deductions by the Company or any subsidiary under the Internal Revenue Code of 1986, as amended, and the rules and regulations adopted pursuant thereto now or hereafter in effect.  

- 4 -

BARCIKOWSKI EMPLOYMENT CONTRACT

5.3

Vacation.  During the first year of the Term, Executive shall be entitled to two (2) weeks vacation.  Executive shall be entitled to three (3) weeks vacation annually during the balance of the Term of this Agreement.  Executive shall also be entitled to such paid holidays and personal days provided generally by the Company to its senior executives.

6.0

Termination.  Executive and the Company agree that Executive’s employment with the Company shall be “at-will” employment and may be terminated with cause as defined by Paragraph 6.1 below or without cause.  Notwithstanding any provision herein to the contrary, no provision of this Agreement shall be construed as conferring upon Executive a right to continue as an employee of the Company.

6.1

Termination of Executive’s Employment by the Company for Cause.  The Company may terminate Executive’s employment hereunder for Cause (as defined below).  Such termination shall be effected by notice thereof delivered by the Company to Executive and shall, except as provided in clauses (a), (b) and (d) of this Section 6.1, be effective as of the date of such notice.  “Cause” shall mean:  (a) Executive’s failure to comply with any of the material terms or conditions of this Agreement, which failure is not corrected within ten (10) days after notice to Executive of the acts or omissions that gave rise to such non-compliance; (b) Executive’s negligence or inadequate performance of his duties responsibilities of his position with the Company or any subsidiary, or negligent or willful failure to timely carry out any lawful directive of the Chief Operating Officer, which failure is not corrected within ten (10) days after notice to Executive of the acts or omissions that gave rise to such non-compliance; (c) Executive’s removal from office or termination of employment by requirement of any governmental authority having jurisdiction over the Company or any subsidiary; (d) Executive’s engaging in any activity which gives rise to a material conflict of interest with the Company or any subsidiary which shall not be cured following five (5) days’ written notice and a demand to cure such conflict; (e) the use or imparting by Executive of any confidential or proprietary information of the Company or any subsidiary in violation of any confidentiality or proprietary agreement to which Executive is a party; or (f) the commission by Executive of an act of fraud or dishonesty toward the Company or any subsidiary.

6.2

Compensation Upon Termination for Cause.  In the event of Executive’s termination for Cause, he shall be entitled to receive all amounts of accrued but unpaid Base Salary and benefits through the date of such termination but all other rights of Executive (and all obligations of the Company), including, without limitation Executive’s rights under paragraph 4.0 above shall terminate as of the date of such termination.

6.3

Compensation Upon Termination of Executive’s Employment by the Company Other than for Cause.  In the event that Executive’s employment hereunder is terminated by the Company other than for Cause, Executive shall be entitled to receive: (a) all 

- 5 -

BARCIKOWSKI EMPLOYMENT CONTRACT

amounts of accrued but unpaid Base Salary and benefits through the date of such termination; and (b) severance calculated at two weeks pay.  Payment of the amounts provided for in this section 6.3 shall be in full satisfaction of the Company’s obligations hereunder, and such payment shall be conditioned upon Executive’s execution of a general release, in form satisfactory to the Company, of all claims Executive may have or have had at any time in connection with his employment with the Company.

6.4

Survival.  In the event of any termination of Executive’s employment for any reason, Executive and the Company nevertheless shall continue to be bound by the terms and conditions set forth in Sections 7 through 10 below.

7.0

Protection of Confidential Information.

Executive acknowledges that during the course of his employment with the Company, its subsidiaries and affiliates, he has been and will be exposed to documents and other information regarding the confidential affairs of the Company, its subsidiaries and affiliates, including without limitation information about their past, present and future financial condition, the markets for their products, key personnel, past, present or future actual or threatened litigation, trade secrets, current and prospective customer lists, operational methods, acquisition plans, prospects, plans for future development and other business affairs and information about the Company and its subsidiaries and affiliates not readily available to the public (the “Confidential Information”).  Executive further acknowledges that the services to be performed under this Agreement are of a special, unique, unusual, extraordinary and intellectual character.  In recognition of the foregoing, the Executive covenants and agrees as follows:

7.1

No Disclosure or Use of Confidential Information.  At no time shall Executive ever divulge, disclose, or otherwise use any Confidential Information, unless and until such information is easily available in the public domain by reason other than Executive’s unauthorized disclosure or use thereof, unless such disclosure or use is expressly authorized by the Board in writing in advance of such disclosure or use.

7.2

Return of Company Property, Records and Files.  Upon the termination of Executive’s employment at any time and for any reason, or at any other time the board may so direct, Executive shall promptly deliver to the Company’s offices in Orange County, California all of the property and equipment of the Company and it subsidiaries (including any cell phones, pagers, credit cards, personal computers, etc.) and any and all documents, records, and files, including any notes, memoranda, customer lists, reports or any and all other documents, including any copies thereof, whether in hard copy form or on a computer disk or hard drive, which relate to the Company, its subsidiaries, affiliates, successors or assigns, and/or their respective past and present officers, directors, employees or consultants (collectively, the “Company Property, Records and Files”); it being expressly understood that, upon termination of Executive’s employment, Executive shall not be authorized to retain any of the Company Property, Records and Files, except to the extent expressly so authorized in writing by the Board.

- 6 -

BARCIKOWSKI EMPLOYMENT CONTRACT

8.0

Noncompetition and Other Matters.

8.1

Noncompetition.  During the Term, Executive shall not in any city, town, county, parish or other municipality in any state of the United States (the names of each such city, town, parish, or other municipality, including, without limitation, the name of each county in the State of California, being expressly incorporated by reference herein), or any other place in the world, where the Company, or its subsidiaries, affiliates, successors, or assigns, engages in business engaged in from time to time by the Company or its subsidiaries, affiliates, successors or assigns, and/or related businesses (the “Business”), directly or indirectly, (i) engage in a competing business for Executive’s own account; (ii) enter the employ of, or render any consulting services to, any entity that competes with the Company, or its subsidiaries, affiliates, successors, or assigns, in the Business; or (iii) become interested in any such entity in any capacity, including, without limitation, as an individual, partner, shareholder, officer, director, principal, agent, trustee or consultant’ provided, however, Executive may own, directly or indirectly, solely as a passive investment, securities of any entity traded on any national securities exchange if Executive is not a controlling person of, or a member of a group which controls, such entity and does not, directly or indirectly own 5% or more of any class of securities of such entity.

8.2

Noninterference.  During the term and for a period of two (2) years thereafter (the “Restricted Period”), Executive shall not, directly or indirectly, solicit, induce, or attempt to solicit or induce any officer, director, employee, agent or consultant of the Company or any of its subsidiaries, affiliates, successors or assigns to terminate his, her or its employment or other relationship with the Company or its subsidiaries, affiliates, successors or assigns for the purpose of associating with any competitor of the Company or its subsidiaries, affiliates, successors or assigns, or otherwise encourage any such person or entity to leave or sever his, her or its employment or other relationship with the Company or its subsidiaries, affiliates, successors or assigns for any other reason.

8.3

Nonsolicitation.  During the Restricted Period, Executive shall not, directly or indirectly, solicit, induce, or attempt to solicit or induce, any customers, clients, vendors, suppliers or consultants then under contract to the Company or its subsidiaries, affiliates, successors or assigns, to terminate his, her or its relationship with the Company or its subsidiaries, affiliates, successors or assigns, for the purpose of associating with any competitor of the Company or its subsidiaries, affiliates, successors or assigns, or otherwise encourage such customers, clients, vendors, suppliers or consultants then under contract to terminate his, her or its relationship with the Company or its subsidiaries, affiliates, successors or assigns for any reason whatsoever.

8.4

Assignment of Invention Rights.  Executive promises and agrees that Executive will promptly and fully disclose to the Company all inventions, designs, improvements, discoveries, ideas, concepts, themes (collectively “Intellectual Property”) that the Executive conceives, makes, formulates, develops, writes or prepares during the term of his employment with the Company, whether on or off the job, and whether individually or jointly in collaboration 

- 7 -

BARCIKOWSKI EMPLOYMENT CONTRACT

with others.  

Executive hereby assigns to the Company any rights which the Executive may have in any Intellectual Property conceived, made, formulated developed, written or prepared by Executive, including but not limited to any patent rights and copyrights applicable to any of the Intellectual Property; provided however, that such assignment does not apply to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code, as set forth below:

“Invention on Own Time–Exemption from Agreement.  Any provision in an employment agreement which provides that an employee assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either (1) relate at the time of the conception or reduction to practice of the invention to the employee’s business, or actual or demonstrably anticipated research or development of the employer, or (2) result from any work performed by the employee for the employer.”

Executive agrees that any and all Intellectual Property, except for those inventions that fully qualify under Section 2870, that the Executive conceives, makes, formulates, develops, writes or prepares while employed by the Company, either individually or jointly in collaboration with others, shall belong to and be the sole and exclusive property of the Company.  Executive further agrees to assist the Company in obtaining patents or copyrights on all such Intellectual Property that is patentable or copyrightable, and shall execute any document(s) necessary to obtain patent or copyright registration, to vest the Company with full and exclusive title, and to protect against infringement by others.

With respect to any invention that fully qualifies under Section 2870, Executive hereby grants to the Company a right of first refusal to negotiate with the Executive for all rights in said invention or for the commercial exploitation of said invention and Executive hereby agrees to negotiate with the Company in good faith.  Should the Company exercise its right to negotiate, or should the parties not reach an agreement within three (3) months, then Executive may exploit Executive’s invention in such manner as determined by Executive.

9.0

Rights and Remedies Upon Breach.

If Executive breaches, or threatens to commit a breach of, any of the provisions of Sections 7 or 8 above (the “Restrictive Covenants”), the Company and its subsidiaries, affiliates, successors or assigns shall have the following rights and remedies, each of which shall be independent of the others and severally enforceable, and each of which shall be in addition to, and not in lieu of, any other rights or remedies available to the Company or its subsidiaries, affiliates, successors or assigns at law or in equity.

- 8 -

BARCIKOWSKI EMPLOYMENT CONTRACT

9.1

Specific Performance.  The right and remedy to have the restrictive Covenants specifically enforced by any court of competent jurisdiction by injunctive decree or otherwise, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company or its subsidiaries, affiliates, successors or assigns and that money damages would not provide an adequate remedy to the Company or its subsidiaries, affiliates, successors or assigns.

9.2

Accounting.  The right and remedy to require Executive to account for and pay over to the Company or its subsidiaries, affiliates, successors or assigns, as the case may be, all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive as a result of any transaction or activity constituting a breach of any of the Restrictive Covenants.

9.3   

Modification by the Court.  If any court determines that any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographic scope of such provision, such court shall have the power to reduce the duration or scope of such provision, as the case may be (it being the intent of the parties that any such reduction be limited to the minimum extent necessary to render such provision enforceable), and, in its reduced form, such provision shall then be enforceable.

9.4

Enforceability in Jurisdictions.  Executive intends to and hereby confers jurisdiction to enforce the Restrictive Covenants upon the courts of any jurisdiction within the geographic scope of such covenants.  If the courts of any one or more of such jurisdictions hold the Restrictive Covenants unenforceable by reason of the breadth of such scope or otherwise, it is the intention of Executive that such determination not bat or in any way effect the right of the Company or its subsidiaries, affiliates, successors or assigns to the relief provided herein in the courts of any other jurisdiction within the geographic scope of such covenants, as to breaches of such covenants in such other respective jurisdictions, such covenants as they relate to each jurisdiction being, for this purpose, severable into diverse and independent covenants.

10.0

Arbitration.

Except as necessary for the Company and its subsidiaries, affiliates, successors or assigns to specifically enforce their rights and Executive’s duties under Sections 7 and 8 above, or to enjoin any breach of such duties therein, the Parties hereby agree that any and all disputes that may arise in connection with, arising out of, or relating to, this Agreement, or any dispute that relates in any way, in whole or in part, to Executive’s employment with the Company or any subsidiary, the termination of that employment or any other dispute by and between the parties or their subsidiaries, affiliates, successors or assigns, shall be submitted to binding arbitration in Orange or Los Angeles County, California, at Company’s election, according to the National Employment dispute Resolution Rules and procedures of the American Arbitration Association.  The parties agree that each shall bear his or its own attorneys’ fees and costs in connection with any such arbitration and each Party shall pay half of any costs associated with the arbitration; provided, 

- 9 -

BARCIKOWSKI EMPLOYMENT CONTRACT

that Company (or any successor or assign) shall reimburse Executive with respect to such fees and costs to the extent Executive prevails as to the material issues in such arbitration.  This arbitration obligation extends to any and all claims that may arise by and between the parties or their subsidiaries, affiliates, successors or assigns, and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and claims under the California constitution, the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited to the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee retirement Income Security Act of 1974, as amended, and the Age Discrimination in Employment Act of 1967, as amended.

11.0

Assignment.  

Neither this Agreement, nor any of Executive’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive.  The Company may assign the rights an obligations of the Company hereunder, in whole or in part, to any of the Company’s subsidiaries, affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock o in connection with any merger, acquisition and/or reorganization.  

12.

Notices.

All notices and other communications under this Agreement shall be in writing and shall be given by facsimile or first class mail, certified or registered with return receipt requested, and shall be deemed to have been duly given three (3) days after mailing or twenty-four (24) hours after transmission of a facsimile to the respective persons named below:

If to the Company:

   

Mr. Michael Skellern, CEO

Universal Guardian Holdings, Inc.

4695 MacArthur Boulevard, Suite 300

Newport Beach, CA 92660

Fax: 

With a copy to:

Mark V. Asdourian, Esq.

4695 MacArthur Boulevard, Suite 300

Newport Beach, CA 92660

Fax: 949.221.0019

- 10 -

BARCIKOWSKI EMPLOYMENT CONTRACT

If to Executive:

Mike Barcikowski

8757 Fawnwood Drive

Castle Rock, CO

Fax:

Any party may change such party’s address for notices by notice duly given pursuant hereto.

13.0

General.

13.1

Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, without giving effect to conflicts of laws, principles thereof which might refer such interpretations to the laws of a different state or jurisdiction.

13.2

Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof, and cancels and supersedes all prior agreements, arrangements and understandings, written o oral, between the Executive and the Company and any subsidiary or affiliate.  No representation, promise or inducement has been made by any party hereto that is not embodied in this Agreement, and no party shall be bound by, or liable for, any alleged representation, promise or inducement not so set forth.

13.3

Amendments; Waivers.  This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms or covenants hereof may be waived, only by a written instrument executed by the parties, or in the case of a waiver, by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner effect the right os such party at a later time to enforce the same.  No waiver by any party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waive of the breach of any other term or covenant contained in this Agreement.

13.4

Interpretation.  This Agreement has been negotiated at arms length between persons knowledgeable in the matters addressed herein.  Each party hereby represents that he, she or it has been represented or had the opportunity to be represented by experienced and knowledgeable legal counsel.  Accordingly, any rule of law, including without limitation, Civil Code section 1654, or any other statutes, legal decisions or common law principles of similar effect, which would require interpretation of any ambiguities in this Agreement against the party that has drafted it is of no application and is hereby expressly waived.

13.5

Successors and Assigns.  This Agreement shall inure to the benefit of, and shall be binding upon, the Company (and their successors and assigns) and Executive and his heirs, executors and personal representatives.

- 11 -

BARCIKOWSKI EMPLOYMENT CONTRACT

13.6

Severable Provisions.  The provisions of this Agreement are severable, and if one or more provisions should be determined to be judicially unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.  The provisions of this Agreement shall be construed as separate provisions covering their subject matter in each of the separate counties and states of the United States in which the Company transacts business; to the extent that any provision shall be adjudged unenforceable in any one or more of those counties or states, that provision shall not be affected with respect to each other county or state, each provision with respect to each county and state being construed as severable and independent. 

13.7

Captions.  The section headings contained herein are for reference purposes only, and shall not in any way effect the meaning or interpretation of this Agreement.

13.8

Counterparts.  This Agreement may be executed by the Parties hereto via facsimile and in separate counterparts, each of which, when so executed and delivered, shall be an original, but all such counterparts together shall constitute one and the same instrument.

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

EXECUTIVE:

UNIVERSAL GUARDIAN HOLDINGS, INC.

By: /s/ Marion Barcikowski

By: /s/ Michael Skellern

Marion Barcikowski

Michael Skellern,

CEO

- 12 -

BARCIKOWSKI EMPLOYMENT CONTRACTTHIS PRECEDENT SHOULD ONLY BE USED BY THE EMPLOYMENT DEPARTMENT – IF IT IS USED BY ANY OTHER FEE EARNER, IT MUST BE CHECKED BY

DATED: 16 JUNE  2004

SECURE RISKS LIMITED  (1)

and

JOHN CHASE (2)

_________________________________

SERVICE AGREEMENT

___________________________________

Mishcon de Reya

Summit House

12 Red Lion Square

London WC1R 4QD

Tel: 020 7440 7000

Fax: 020 7404 5982

Ref: 65/JCB/SML

j:\jmw\jmw business\jmw active\richardson & patel\universal guardian holdings\strategic securities solutions\chase sssi service agreement.doc

TABLE OF CONTENTS

1

DEFINITIONS

1

2

APPOINTMENT

1

3

TERM

1

4

DUTIES

1

5

HOURS AND PLACE OF WORK

1

6

REMUNERATION

1

7

EXPENSES

1

8

HOLIDAYS

1

9

SICKNESS

1

10

PENSION/DEATH BENEFITS

1

11

OTHER ACTIVITIES

1

12

CONFIDENTIAL INFORMATION

1

13

COMPANY PROPERTY

1

14

INTELLECTUAL PROPERTY

1

15

TERMINATION

1

16

GARDEN LEAVE

1

17

RESTRICTIVE COVENANTS

1

18

DISCIPLINARY AND GRIEVANCE PROCEDURE

1

19

PERSONAL DATA

1

20

E-MAIL AND INTERNET

1

21

NOTICES

1

22

FORMER AGREEMENTS

1

23

CONSTRUCTION

1

24

THIRD PARTY RIGHTS

1

25

PROPER LAW

1

1

Chase SSSI Service Agreement

THIS AGREEMENT is dated June 16th, 2004 and is made BETWEEN:

(1)      SECURE RISKS LIMITED, whose registered office is at Summit House, 12 Red Lion Square, London WC1R 4QD United Kingdom, (the "Company"); and

(2)

JOHN CHASE of     36 Alie Street, London E1 8DA. United Kingdom                                                             (the "Executive")

IT IS AGREED as follows:

1.

DEFINITIONS"\l 1 DEFINITIONS

1.1

In this Agreement:

the following expressions have the following meanings:

"associated company" means an associated company within the meaning of section 416 of the Income and Corporation Taxes Act 1988;

the "Board" means the board of directors for the time being of the Company or any committee of the board of directors duly appointed by it;

"Change of Control" means that the control (as defined for the purposes of Section 416 of the Income and Corporation Taxes Act 1988) of the company concerned shall have passed or been transferred to any person or persons other than the person or persons in control of the company concerned at the date of this Agreement;

the "Employment" means the Executive's employment under this Agreement;  

"Good Reason" means a Change of Control or  the Company demoting the Executive from his position as Managing Director;

"Group Company" and "Group" means the Company, its ultimate holding company and any subsidiary or associated company of the Company or its ultimate holding company;

2

Chase SSSI Service Agreement

"Intellectual Property Rights" means all copyright (including rights in software), trade marks, service marks, registered and unregistered design rights, patents, applications for and the right to register any of the above rights and all rights or forms of protection of a similar nature or having equivalent or similar effect to any of these which may subsist anywhere in the world.

"Investment" means any holding as a bona fide investment of not more than three per cent of the total issued share capital or debentures in any company whose shares are quoted or dealt in on any recognised investment exchange.

"subsidiary" and "holding company" have the meanings given to them in section 736 of the Companies Act 1985 as amended;

2.

APPOINTMENT"\l 1 APPOINTMENT

The Executive will be employed as Managing Director – Secure Risks - Strategic Security Solutions on the terms set out in this Agreement.

3.

TERM"\l 1 TERM

3.1

The Employment will commence on June 17th, 2004 (the "Start Date") and will continue until terminated:

3.1.1

as provided for elsewhere in this Agreement;

3.1.2

by either party giving to the other not less than 3 months' prior written notice (such notice not to expire at any time before the first anniversary of the Start Date), but in any event automatically on the third anniversary of the Start Date; or

3.1.3

automatically when the Executive reaches 65 years of age or such other age as the Board shall determine is the normal retirement age from time to time.

3.2

The Executive's previous employment with Strategic Security Solutions International Limited does not count as part of the Executive's continuous employment with the Company.

3

Chase SSSI Service Agreement

4.

DUTIES"\l 1 DUTIES

4.1

The Executive shall:-

4.1.1

devote the whole of his working time and attention to the duties assigned to him;

4.1.2

faithfully and diligently serve the Company (and all Group Companies);

4.1.3

use his best endeavours to promote and protect the interests of the Company (and all Group Companies);

4.1.4

obey all reasonable and lawful directions given to him by or under the authority of the Board;

4.1.5

perform services for and hold offices in any Group Company without additional remuneration;

4.1.6

carry out his duties and exercise his powers jointly with such person as the Board may appoint to act jointly with him; and

4.1.7

make such reports to the Board on any matters concerning the affairs of the Company or any Group Company as are reasonably required. 

4.2

The Company may at its sole discretion transfer this Agreement to any Group Company at any time.

5.

HOURS AND PLACE OF WORK"\l 1 HOURS AND PLACE OF WORK

5.1

The Executive's normal working hours are 9.00 a.m. to 5.00 p.m. Monday to Friday, together with such additional hours as may be necessary for the proper performance of his duties.

5.2

The Working Time Regulations 1998 limit the average working week (as calculated over a 17 week period) of workers to a maximum of 48 hours.  The Executive agrees to opt out of the relevant part of the Working Time 

4

Chase SSSI Service Agreement

Regulations. Should the Executive wish to terminate this opt-out then he may do so by giving not less than three months' written notice addressed to the Company Secretary.

5.3

The Executive's normal place of work will be the Company's premises 36 Alie Street, London, E1 8DA, United Kingdom at but the Company may require the Executive to work at any place within the United Kingdom on either a temporary or an indefinite basis.  The Executive will be given reasonable notice of any change in his place of work, at a time after the Board of Directors have unanimously agreed this change.

5.4

If the Executive's principal place of work is changed to a location which is outside reasonable commuting distance from his home, the Company will reimburse his reasonable relocation expenses in accordance with the Company's relocation policy from time to time.

5.5

If so required by the Company, the Executive shall travel to such places (whether in the United Kingdom or abroad) by such means and on such occasions as the Company may from time to time require.

6.

REMUNERATION"\l 1 REMUNERATION

6.1

The Company will pay to the Executive a salary at the rate of £100,000 per annum, payable by equal monthly instalments in arrears on or before the last working day of each calendar month. 

6.2

The Executive shall be entitled to receive by way of further remuneration a discretionary bonus calculated in accordance with the Company’s established bonus schedule, as determined by the Board of Directors of the Company.   The Executive acknowledges that he has no right to receive a bonus and that he will not acquire such a right, nor shall the Board come under such an obligation, merely by virtue of having received one or more bonus payments during the Employment.  For the avoidance of doubt, the Executive will not be entitled to receive a bonus if his employment has terminated (for any reason) or he is serving any period of notice (whether on Garden Leave or otherwise) at the time that bonuses are paid.

5

Chase SSSI Service Agreement

6.3

The remuneration specified in clause 6.1 shall be inclusive of any fees to which the Executive may be entitled as a director of the Company or any Group Company.

6.4

For the purposes of the Employment Rights Act 1996 or otherwise, the Executive hereby consents to the deduction of any sums owing by him to the Company or any Group Company at any time from his salary or any other payment due from the Company to the Executive. 

7.

EXPENSES"\l 1 EXPENSES

The Company shall reimburse the Executive in respect of all travelling, hotel and other expenses properly and reasonably incurred by him in the proper performance of his duties under this Agreement, subject to the Executive providing such receipts or other evidence as the Company may require.

8.

HOLIDAYS"\l 1 HOLIDAYS

8.1

In addition to bank and other public holidays, the Executive will be entitled to a minimum of 20 working days' paid holiday in each holiday year (being the period from 1 January to 31 December) to be taken at such time or times as may be approved by the Board.

8.2

In the respective holiday years in which the Employment commences or terminates, the Executive's entitlement to holiday shall accrue on a pro rata basis for each complete month of service during the relevant year.

8.3

On termination of the Employment, the Company may either require the Executive to take any unused accrued holiday entitlement during any notice period or make payment in lieu of that entitlement. If the Executive has taken more holiday than his accrued entitlement, he will be required to reimburse the Company in respect of the excess days taken and the Company is authorised to deduct the appropriate amount from any sums due to him. Any payment in lieu or deduction made shall be calculated on the basis that each day of paid holiday is equivalent to 1/260th of the Executive's salary.

6

Chase SSSI Service Agreement

8.4

Any holiday not taken in a holiday year cannot be carried over to the subsequent year without the permission of the Board.

9.

SICKNESS BENEFITS"\l 1 SICKNESS BENEFITS

9.1

Provided the Executive complies with the notification and certification procedures below (or such additional or alternative procedures as the Company shall notify from time to time) he will be paid his salary during any absence from work due to illness or injury for an aggregate of up to 13 weeks in any period of 12 months. Such payments will be inclusive of any statutory sick pay and the Company may deduct from such payments the amount of any social security or other benefits that the Executive may be entitled to receive and, to the extent that such sums are recoverable from third parties in relation to such incapacity, payments under this clause will constitute a loan repayable on demand at such time as the Executive receives such third party payment. 

9.2

The Executive shall notify the Company as soon as possible on the first day of absence of the reason for the absence.  The Executive shall be required to complete self-certification forms in respect of any period of absence and shall provide a medical certificate for any period of incapacity of more than seven days (including weekends). Further certificates must be provided to cover any further periods of incapacity.

9.3

The Company may require the Executive to be examined by a doctor appointed by the Company and the Executive consents to such doctor disclosing the results of the examination to the Company.

9.4

If the Executive is away from work due to illness or injury for a consecutive period of 40 working days the Company may (without prejudice to the provisions of clause 15) appoint another person or persons to perform the Executive's duties.

7

Chase SSSI Service Agreement

10.

PENSION [AND OTHER BENEFITS]"\l 1 PENSION/DEATH BENEFITS

10.1

The Company does not currently operate a pension scheme.  There is no contracting-out certificate in force in respect of the Employment.  The Company does not contribute to the stakeholder pension scheme.  

10.2

Secure Risks is required to provide a £500,000 term life insurance policy in the name of the Executive for the benefit of his family, in the event of the Executive's death whilst in service. 

11.

OTHER ACTIVITIES"\l 1 OTHER ACTIVITIES

The Executive shall not (unless otherwise agreed in writing by the Board) whether directly or indirectly, paid or unpaid, undertake, be engaged or concerned in the conduct of, be or become an employee, agent, partner, consultant or director of or assist or have any financial interest in any other actual or prospective business or profession, provided that this shall not prevent the Executive from holding an Investment.

12.

CONFIDENTIAL INFORMATION"\l 1 CONFIDENTIAL INFORMATION

12.1

The Executive shall not (save in the proper course of his duties or as authorised by the Company) use or communicate to any person (and shall use his best endeavours to prevent the use or communication of) any trade or business secrets or confidential information of or relating to the Company or any Group Company (including, but not limited to details of customers or suppliers, terms of business, business plans, financial information, sales and marketing information, details of employees and officers and their remuneration and other benefits, source codes, passwords or other confidential matters relating to computer systems, research and development projects, intellectual property, know-how and any information which the Executive has been told is confidential or which has been obtained in circumstances in which the Company or any Group Company is subject to a duty of confidentiality in relation to that information).  

8

Chase SSSI Service Agreement

12.2

The restriction in clause 12.1 above shall continue to apply after the termination of the Employment howsoever arising and shall include information in the public domain for so long as the Executive is in a position to use such information more readily than others who have not worked for the Company or any Group Company.  It shall not apply to information which the Executive may be ordered to disclose by a court of competent jurisdiction or which the Executive discloses pursuant to and in accordance with the Public Interest Disclosure Act 1998.

13.

COMPANY PROPERTY"\l 1 COMPANY PROPERTY

On the termination of the Employment or at any time at the request of the Company, the Executive shall immediately deliver up to the Company all property of the Company or any Group Company which may be in the Executive's possession or control including, without limitation, keys, mobile phone, company car, computer equipment, all correspondence, documents, papers, memoranda, notes and records (including, without limitation, any records stored by electronic means, together with any codes or implements necessary to give full access to such records), system designs, software designs and software programmes (in whatever media) and all copies of the above.

14.

INTELLECTUAL PROPERTY"\l 1 INTELLECTUAL PROPERTY

14.1

The Executive shall promptly disclose to the Company any idea, invention or work which is relevant to or capable of use in the business of the Company or any Group Company, made by him in the course of his employment (whether or not in the course of his duties).  The Executive acknowledges that the Intellectual Property Rights subsisting (or which may in the future subsist) in any such ideas, inventions or works will, on creation, vest in and be the exclusive property of the Company and if they do not do so he hereby assigns them to the Company, such assignment to take effect upon the creation of each of the Intellectual Property Rights.  The Executive hereby irrevocably waives any moral rights which he may have in any such ideas, inventions or works 

9

Chase SSSI Service Agreement

which are or have been conferred upon him by chapter IV of part I of the Copyright, Designs and Patents Act 1988.

14.2

The Executive hereby irrevocably appoints the Company to be his attorney in his name and on his behalf to execute and do any such instrument or thing and generally to use his name for the purpose of giving to the Company or its nominee the full benefit of the provisions of this clause and acknowledges in favour of any third party that a certificate in writing signed by any Director or Secretary of the Company that any instrument or act falls within the authority hereby conferred shall be exclusive evidence that such is the case.

15.

TERMINATION"\l 1 TERMINATION

15.1

The Company may terminate the Executive's employment at any time without prior notice or payment in lieu of notice if the Executive:-

15.1.1

is guilty of gross misconduct (which, for the avoidance of doubt, includes any conduct which tends to bring the Company into disrepute);

15.1.2

is convicted of any criminal offence other than a motoring offence for which no custodial sentence is given to him;

15.1.3

becomes bankrupt or makes any arrangement or composition with or for the benefit of his creditors;

15.1.4

is disqualified from holding any office which he holds in the Company or resigns from such office without the prior written approval of the Board; or

15.1.5

becomes of unsound mind or a patient under any statute relating to mental health.

15.2

Termination by Executive for Good Reason.  

Should the Executive terminate the Employment for a Good Reason, 

10

Chase SSSI Service Agreement

he will be entitled to payment of the Termination Benefits, subject to him giving the Company notice in writing within 90 days of the event allowing termination for a Good Reason. 

 

15.3

Termination Benefits.

In the event of termination of the Executive’s employment with the Company pursuant to Sections 15.2 , the Company shall

 (i) pay a sum to the Executive equal to the remaining balance of salary that would have been earned until the end of the third anniversary of the Start Date;

(i) for a period of 16 months, continue to pay the premiums for any life insurance policy or health insurance policy paid for by the Company in accordance with the terms of this Agreement and in effect on the date of Executive’s termination and

 (ii) provide outplacement services, as offered by the Company on the date of termination (the "Termination Benefits").

The parties hereto agree that the Termination Benefits are to be in full satisfaction, compromise and release of any contractual and statutory claims arising out of any termination of the Employment  pursuant to Section 15.2, and such amounts shall be contingent upon the Executive's delivery of a compromise agreement of such claims upon termination of employment in a form reasonably satisfactory to the Company, it is being understood that no Termination Benefits shall be provided unless and until the Executive determines to enter into the said compromise agreement. 

11

Chase SSSI Service Agreement

15.4

Notwithstanding termination of this Agreement as provided in this Section 15 or any other termination of Executive’s employment with the Company, Executive’s obligations under Section 17 hereof shall survive any termination of Executive’s employment with the Company at any time and for any reason.

 

16.

GARDEN LEAVE"\l 1 GARDEN LEAVE

16.1

Despite any other provision in this Agreement the Company is under no obligation to provide the Executive with work and may (if either party serves notice to terminate the Employment or if the Executive purports to terminate the Employment without due notice and the Company has not accepted that resignation) require the Executive to perform:

16.1.1

only a specified part of his normal duties, and no others;

16.1.2

such duties as it may reasonably require, and no others; or

16.1.3

no duties whatever

and may exclude the Executive from any premises of any Group Company ("Garden Leave").

16.2

During any period of Garden Leave, the Executive shall:-

16.2.1

remain an employee of the Company;

16.2.2

not (except as a representative of the Company or with the prior written approval of the Board) whether directly or indirectly, paid or unpaid, be engaged or concerned in the conduct of any other actual or prospective business or profession or be or become an employee, agent, partner, consultant or director of any other company or firm or assist or have any financial interest in any other such business or profession (provided the Executive shall not be prevented from holding an Investment);

12

Chase SSSI Service Agreement

16.2.3

not have any contact or communication with any client or customer, employee, officer, director, agent or consultant of the Company or any Group Company except such person(s) as the Company shall designate;

16.2.4

keep the Company informed of his whereabouts so that he can be called upon to perform any appropriate duties as required by the Company;

16.2.5

continue to receive his salary and, any bonus payment due under clause 6.2 and contractual benefits in the usual way; and 

16.2.6

continue to be bound by his contractual and implied duties of good faith and fidelity.

17.

RESTRICTIVE COVENANTS"\l 1 RESTRICTIVE COVENANTS 

17.1

In this clause:

"Customer" means any person, firm, company or entity who has at any time during the Relevant Period been a customer or client of the Company or any Group Company and with whom the Executive was materially involved or had personal dealings during the Relevant Period;

"Key Employee" means any employee of the Company or any Group Company who immediately prior to the Termination Date was a manager or consultant of the Company or any Group Company with whom the Executive had personal dealings during the Relevant Period;

"Prospective Customer" means any person, firm, company or entity who has at any time during the period of six months prior to the Termination Date been in negotiations with the Company or any Group Company for the provision of services and with whom during such period the Executive was materially involved or had personal dealings during the Relevant Period;

13

Chase SSSI Service Agreement

"Relevant Area" means any part of any country in which the Executive was actively involved in the business of the Company or any Group Company at any time during the Relevant Period;

"Relevant Period" means the period of 12 months ending on the Termination Date;

"Services" means services identical or similar to those being provided by the Company or any Group Company at the Termination Date and with which the Executive was materially involved during the Relevant Period; 

"Termination Date" means the date on which the Employment terminates or, if the Executive spends a period on Garden Leave immediately before the termination of the Employment, such earlier date on which such Garden Leave commences.

17.2

The Executive covenants with the Company that he will not (save with the prior written consent of the Board (which shall not be unreasonably withheld)), directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his own account or as principal, partner, shareholder (disregarding any Investment), director, employee, consultant or in any other capacity whatsoever:-

17.2.1

for six months following the Termination Date be engaged or concerned in any business which is carried on in the Relevant Area and which is competitive with any business carried on by the Company or any Group Company at the Termination Date in which the Executive was materially involved in the course of the Employment;

17.2.2

for six months following the Termination Date and in competition with the Company or any Group Company canvass or solicit business or custom from any Customer or Prospective Customer in relation to Services;

14

Chase SSSI Service Agreement

17.2.3

for six months following the Termination Date and in competition with the Company or any Group Company be concerned with the provision to any Customer or Prospective Customer of Services or otherwise deal with any Customer or Prospective Customer in relation to Services;

17.2.4

for six months following the Termination Date and in competition with the Company or any Group Company canvass or solicit business or custom from any Supplier in relation to services identical or similar to those supplied to the Company or any Group Company in the Relevant Period;

17.2.5

for six months following the Termination Date and in competition with the Company or any Group Company be concerned with the receipt of services from any Supplier where such services are in competition with those supplied to the Company or any Group Company in the Relevant Period;

17.2.6

for six months following the Termination Date solicit or endeavour to solicit the employment or engagement of any Key Employee in a business which is in competition with the Company or any Group Company (whether or not such person would breach their contract of employment or engagement);

17.2.7

at any time after the Termination Date represent himself as being in any way connected with (other than as a former employee) or interested in the business of the Company or any Group Company or use any registered names or trading names associated with the Company or any Group Company.

17.3

The Executive has given the covenants in clause 17.2 above to the Company as trustee for itself and for each Group Company.  The Executive agrees that he shall (at the request and cost of the Company) enter into a direct agreement with any Group Company for which he performs services under which he will accept restrictions identical to the restrictions contained in this clause 17 (or such similar restrictions as will be appropriate provided that such restrictions 

15

Chase SSSI Service Agreement

shall be no wider in scope than those contained in this clause) in relation to such Group Company.

17.4

Each of the restrictions contained in this clause is an entirely separate and independent restriction, despite the fact that they may be contained in the same phrase, and if any part is found to be unenforceable the remainder will remain valid and enforceable.  

17.5

While the restrictions in this clause (on which the Executive has had the opportunity to take independent legal advice) are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such restriction should be held to be void or ineffective for any reason but would be treated as valid and effective if some part or parts of the restriction were deleted, the restriction in question will apply with such modification as may be necessary to make it valid and effective.

17.6

If, during the Employment or any period during which the restrictions in this clause 17 apply, any person, firm, company or entity offers to the Executive any arrangement or contract which might or would cause the Executive to breach any of the restrictions, he will notify that person, firm, company or entity of the terms of this clause 17.

18.

DISCIPLINARY AND GRIEVANCE PROCEDURE"\l 1 DISCIPLINARY AND GRIEVANCE PROCEDURE

18.1

There are no specific disciplinary rules that apply to the Executive except those provided in this Agreement.  If the Executive is dissatisfied with any disciplinary decision, he should apply in writing to the Board.

18.2

The Company may at any time suspend the Executive on full pay for a period of up to 20 working days, or such longer period as shall be reasonably necessary, for the purposes of investigating any allegation of misconduct or neglect against him. 

18.3

If the Executive wishes to obtain redress of any grievance relating to the Employment or make any protected disclosure in accordance with the Public 

16

Chase SSSI Service Agreement

Interest Disclosure Act 1998, he shall apply in writing to the Managing Director with a copy to the Chairman of the Board, setting out the nature and details of any such grievance or disclosure.

19.

PERSONAL DATA"\l 1 PERSONAL DATA

The Executive consents to the Company or any Group Company holding and processing both electronically and manually any data (which may include sensitive personal data) which relates to the Executive for the purposes of the administration and management of its employees and its business and for compliance with applicable procedures, laws and regulations.  The Executive also consents to the transfer of such personal data to other offices the Company may have or to a Group Company or to other third parties, whether or not in the European Economic Area, for administration purposes and other purposes in connection with the Executive's employment where it is necessary or desirable for the Company to do so. 

20.

E-MAIL AND INTERNET"\l 1 E-MAIL AND INTERNET 

Telephone calls made and received by the Executive using the Company's equipment, use of the e-mail system to send or receive business or personal correspondence and use of the Internet may be monitored and/or recorded by the Company. The Executive acknowledges that the content of any communications using the Company's systems will not be private and confidential to the Executive. 

21.

NOTICES"\l 1 NOTICES

Any notice to be given under this Agreement shall be in writing.  Notices may be given by either party by personal delivery or post or by fax addressed to the other party at (in the case of the Company) its registered office for the time being and (in the case of the Executive) either to his address shown in this Agreement or to his last known address and shall be deemed to have been served at the time at which it was delivered personally or transmitted or, if sent by post, would be delivered in the ordinary course of post.

17

Chase SSSI Service Agreement

22.

FORMER AGREEMENTS"\l 1 FORMER AGREEMENTS

22.1

This Agreement contains the entire understanding between the parties and is in substitution for any previous letters of appointment, agreements or arrangements, whether written, oral or implied, relating to the employment or engagement of the Executive, which shall be deemed to have been terminated by mutual consent as from the commencement of this Agreement.

22.2

The Executive hereby warrants and represents to the Company that he will not, in entering into this Agreement or carrying out his duties under this Agreement, be in breach of any terms of employment whether express or implied or any other obligation binding upon him.

23.

CONSTRUCTION"\l 1 CONSTRUCTION

23.1

The headings in this Agreement are inserted for convenience only and shall not affect its construction.

23.2

Any reference to a statutory provision shall be construed as a reference to any statutory modification or re-enactment of such provision (whether before or after the date of this Agreement) for the time being in force.

23.3

The schedules to this Agreement, if any, form part of and are incorporated into this Agreement.

23.4

No modification, variation or amendment to this Agreement shall be effective unless such modification, variation or amendment is in writing and has been signed by or on behalf of both parties. 

24.

THIRD PARTY RIGHTS"\l 1 THIRD PARTY RIGHTS

Any Group Company may enforce the terms of this Agreement against the Executive but this Agreement shall not convey any rights on any other third party and the provisions of the Contracts (Rights of Third Parties) Act 1999 shall be excluded for these purposes.

18

Chase SSSI Service Agreement

25.

PROPER LAW"\l 1 PROPER LAW

Any dispute, controversy, proceedings or claim of whatever nature arising out of or relating to this Agreement shall be governed by, and this Agreement shall be construed in all respects, in accordance with English law.

IN WITNESS whereof this Agreement has been executed as a deed on the date first above written

EXECUTED as a deed by 

SECURE RISKS LIMITED

)

Director 

and signed by two duly authorised

)

Director/Secretary 

officers on its behalf 

)

/s/  Michael J. Skellern

EXECUTED and DELIVERED

as a deed by

/s/ John Chase

in the presence of 

Signature of witness

/s/ Bruce Braes

Name

Bruce Braes

Address

13 Westcroft Court

Beechwood Grove

Livingston

EH54 7EW

Occupation

Company Director

19

Chase SSSI Service Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]