Document:

exh10_4.htm

Exhibit 10.4

 

GTC CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the "Agreement") is made and entered into this 10th day of December, 2014 (the "Effective Date") by and between World Surveillance Group Inc., a Delaware corporation duly organized under law and having a place of business at State Road 405, Building M6-306A, Room1400, Kennedy Space Center, FL 32815 (hereinafter referred to as the “Company"), Global Telesat Corp. (“GTC”), a Virginia corporation and wholly owned subsidiary of the Company, and Trident Aerial Recon LLC, an Ohio limited liability company having a place of business at 4196 Hobbs Landing Drive, West Dublin, Ohio 43017 (hereinafter referred to as the "Consultant" and together with the Company and GTC, the “Parties”).

WHEREAS, the Company and GTC wish to engage the Consultant to provide the services described herein and Consultant agrees to provide the services for the compensation and otherwise in accordance with the terms and conditions contained in this Agreement.

NOW THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, accepted and agreed to, the Company, GTC and the Consultant, intending to be legally bound, agree to the terms set forth below.

1.           TERM.  Commencing as of the Effective Date, and continuing for a period of one (1) year (the “Term”), unless earlier terminated pursuant to Article 4 hereof, the Consultant agrees that he will serve as a consultant to the Company and GTC.  This Agreement shall be renewed for successive one (1) year periods, which shall be considered part of the Term, unless earlier terminated by any of the Parties.

2.           DUTIES AND SERVICES.

(a)           Consultant's duties and responsibilities shall be to work with the President of GTC to run the business of GTC for the Company (collectively, the “Services”). In the performance of the Services hereunder, Consultant shall not provide to any third party any information regarding the Company or GTC unless approved in advance by the Company.

(b)           Consultant agrees that during the Term it will devote such amount of its business time as it shall deem necessary to perform the Services. Consultant agrees that at all times in the performance of the Services, it will neither undertake nor cause, nor permit to be undertaken, any activity which either (i) is illegal under any laws, decrees, rules, orders or regulations in effect in either the United States or any other country in which the Company or GTC has a business interest; or (ii) would have the effect of causing the Company or GTC to be in violation of any laws, decrees, rules, orders or regulations in effect in either the United States or any other country in which the Company or GTC has a business interest.  In the performance of the Services, Consultant will at all times act in the best interests of the Company and GTC.

 

 

  

  

  

 

(c)           The Consultant represents and warrants to the Company and GTC that (i) it is under no contractual or other restrictions or obligations which are inconsistent with the execution of this Agreement, or which will interfere with the performance of the Services; (ii) the execution and performance of this Agreement will not violate any policies or procedures of any other person or entity for which it performs any services concurrently with those performed herein; and (iii) it does not have any agreements to provide consulting or other services to any other person, party, firm, entity or company that is engaged in any business competitive with the Company or GTC and it will not enter into any such agreement during the Term or during the one (1) year period thereafter.

(d)           The Consultant acknowledges that by the very nature of its relationship with the Company, it, from time to time, will have knowledge of or access to material non-public information of the Company and GTC, as such term is defined in the Securities Act of 1933, as amended (the “Securities Act”).  The Consultant agrees and covenants that (i) it will not make any purchases, sales or other transactions in the securities of the Company based on or while in possession of any material non-public information, and (ii) it will use its best efforts to safeguard and prevent the dissemination of such material non-public information to third parties.

(e)           Consultant agrees that at any time and from time to time, upon the request of the Company or GTC, to do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all such further acts, documents and instruments as may be required to effect any of the transactions contemplated by this Agreement.

(f)           As an inducement for the Company and GTC to enter into this Agreement, Consultant represents and warrants to the Company and GTC that all Services, work and deliverables to be performed hereunder shall be performed by it in a professional and workmanlike manner in accordance with the highest industry standards.

3.           CONSULTING FEE.

(a)           Subject to the provisions hereof, the Company shall pay Consultant a consulting fee of five thousand dollars ($5,000) for each month it is providing Services to the Company and GTC, which fee shall be reviewed by the Parties after thirty (30) days from the Effective Date and may be adjusted by the Parties at such time (the "Consulting Fee").

(b)           Consultant shall be entitled to reimbursement for all reasonable and necessary expenses, which expenses which if over $500 were approved in writing by the Company prior to their incurrence, incurred in the performance of the Services, upon submission of supporting appropriate written statements and receipts.

(c)           The Consultant agrees that all Services will be rendered by it as an independent contractor and that this Agreement does not create an employer-employee relationship, agency, partnership, co-venturer or other similar relationship between the Consultant and the Company or GTC, any law of any jurisdiction to the contrary notwithstanding, and that neither the Company nor GTC will incur any liability as a result of Consultant’s actions hereunder.  The Consultant shall at all times disclose that it is an independent contractor of the Company and GTC and will not hold itself out as, or represent to any third party that it is, an agent, partner, officer, director, co-venturer, representative or employee of the Company or GTC in connection with this Agreement or the performance of the Services hereunder or otherwise.  Consultant shall have no power to enter into any agreement on behalf of, or otherwise bind, the Company, and Consultant shall not enter into any contract or commitment on behalf of the Company.  The Consultant shall have no right to receive any employee benefits offered to employees of the Company or GTC including, but not limited to, workers compensation coverage, stock option or incentive plans, health and accident insurance, life insurance, sick leave and/or vacation. Consultant agrees to pay, and shall be solely liable for, all taxes including self-employment taxes due in respect of the Consulting Fee, and agrees to indemnify the Company and GTC in the event the Company or GTC is required to pay any such taxes on behalf of the Consultant.

 

  

  

  

 

4.           EARLY TERMINATION OF THE TERM.

(a)           This Agreement and Consultant’s engagement hereunder may be terminated for any reason or for no reason by either Party upon thirty (30) days prior written notice by either Party to the other.

(b)           Upon termination under Section 4(a), no Party shall have any further obligations under this Agreement, except for the obligations that by their terms survive this termination as noted in Section 16 hereof.  Upon termination of this Agreement and, in any case, upon the Company’s or GTC’s request, the Consultant shall return immediately to the Company all Confidential Information, as hereinafter defined, and copies thereof, all documents or other written materials generated by Consultant in the performance of the Services hereunder and all other property of the Company or GTC.

5.           RESTRICTED ACTIVITIES. During the Term and for a period of one (1) year from the date of the termination of Consultant’s engagement hereunder, Consultant will not, directly or indirectly, individually or as a consultant to, or an employee, officer, director, manager, stockholder (except as the owner of less than 1% of the stock of a publicly traded company), partner, member or other owner or participant in any business entity other than the Company or GTC: (i) engage in or assist any other person or entity to engage in any business which competes with any business in which the Company or GTC is then engaging anywhere in the United States or the world where the Company or GTC does business; (ii) offer employment or any consulting arrangement to, hire, or otherwise interfere with the business relationship of the Company or GTC with, any person or entity who is, or was within the six month period immediately prior thereto, employed by, associated with or a consultant to the Company or GTC; (iii) solicit away from the Company or GTC or endeavor to entice away from the Company or GTC, or otherwise interfere with the business relationship of the Company or GTC with, any person or entity who is, or was within the six month period immediately prior thereto, a customer, dealer, distributor or client of, supplier, vendor or service provider to the Company or GTC.

 

 

  

  

  

 

	
6.

	
CONFIDENTIALITY; PROPRIETARY RIGHTS.  The Consultant agrees that during the Term and thereafter:

(a)           The Consultant will not at any time, directly or indirectly, disclose or divulge any Confidential Information (as hereinafter defined), except as required in connection with the performance of the Services hereunder as authorized in advance by the Company, and except to the extent required by law (but only after the Consultant has provided the Company with reasonable notice and opportunity to take action against any legally required disclosure). As used herein, “Confidential Information” means all trade secrets and all other information of a business, financial, marketing, technical, personnel or other nature relating to the business of the Company or GTC including, without limitation, any customer or vendor lists, investor information, prospective customer names, financial statements and projections, know-how, pricing policies, operational methods, methods of doing business, technical processes, policies, procedures, techniques, formulae, designs and design projects, know-how, specifications, inventions, computer hardware, software programs and source code, data relating to the development, research, testing, costs, marketing and uses of the Company’s or GTC’s products, business plans, budgets, and projects pertaining to the Company or GTC and including any information of others that the Company or GTC has agreed to keep confidential; provided, however, that Confidential Information shall not include any information that has entered or enters the public domain through no fault of the Consultant.

 

(b)           The Consultant shall make no use whatsoever, directly or indirectly, of any Confidential Information at any time, except as required in connection with the performance of the Services hereunder.

 

(c)           Upon the Company’s or GTC’s request at any time and for any reason and upon termination of this Agreement, the Consultant shall immediately deliver to the Company, or destroy if directed by the Company or GTC, all materials (including all soft and hard copies) in the Consultant’s possession which contain or relate to Confidential Information, all documents or other written materials generated by Consultant in the performance of the Services hereunder and all other property of the Company and GTC.

 

(d)           All inventions, modifications, discoveries, designs, developments, improvements, processes, software programs, works of authorship, documentation, formulae, data, techniques, know-how, secrets or intellectual property rights or any interest therein (collectively, the “Developments”) made by the Consultant in connection with the performance of the Services pursuant hereto, either alone or in conjunction with others, at any time or at any place during the Term hereof, whether or not reduced to writing or practice during such consultancy period, which relate to the Company or  GTC or the business in which the Company or GTC is engaged shall be and hereby are the exclusive property of the Company and GTC without any further compensation to the Consultant.  In addition, without limiting the generality of the prior sentence, all Developments which are copyrightable work by the Consultant are intended to be “work made for hire” as defined in Section 101 of the Copyright Act of 1976, as amended, and shall be and hereby are the property of the Company and GTC.

 

 

  

  

  

 

(e)           The Consultant shall promptly disclose all Developments to the Company and GTC.  If any Development is not the property of the Company and/or GTC by operation of law, this Agreement or otherwise, the Consultant will, and hereby does, assign to the Company and/or GTC as appropriate all right, title and interest in such Development, without further consideration, and will assist the Company, GTC and its nominees in every way, at the Company’s expense, to secure, maintain and defend the Company’s or GTC’s rights in such Development.  The Consultant shall sign all instruments necessary for the filing and prosecution of any applications for, or extension or renewals of, letters patent (or other intellectual property registrations or filings) of the United States or any foreign country that the Company or GTC desires to file and relates to any Development.  The Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as such Consultant’s agent and attorney-in-fact (which designation and appointment shall be deemed coupled with an interest and shall survive the Consultant’s death or incapacity), to act for and in the Consultant’s behalf to execute and file any such applications, extensions or renewals and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, other intellectual property registrations or filings, or such other similar documents with the same legal force and effect as if executed by the Consultant.

 

	
7.

	
REMEDIES; APPLICABILITY TO AFFILIATED COMPANIES.

     Without limiting the remedies available to the Company or GTC, the Consultant acknowledges that a breach or a threatened breach of any of the covenants contained herein could result in irreparable injury to the Company and/or GTC for which there might be no adequate remedy at law, and that, in the event of such a breach or threat thereof, the Company and GTC shall be entitled to obtain a temporary restraining order and/or a preliminary injunction and a permanent injunction restraining the Consultant from engaging in any activities prohibited herein or such other equitable relief as may be required to enforce specifically any of such covenants herein. For purposes of this Agreement, the term “Company” shall include the Company, each of its affiliated companies, subsidiaries and parent company, as applicable, and their respective successors and assigns.

8.           WAIVER.  Any waiver by the Company or GTC of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof.  All waivers by the Company and GTC shall be in writing.

9.           SEVERABILITY; REFORMATION.  In case any one or more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement; and this Agreement shall, to the fullest extent lawful, be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never been contained herein, and such provision or part reformed so that it would be valid, legal and enforceable to the maximum extent possible. Without limiting the foregoing, if any provision (or part of provision) contained in this Agreement shall for any reason be held to be excessively broad as to duration, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the fullest extent compatible with then existing applicable law.

 

 

  

  

  

 

10.           ASSIGNMENT.  The Company and GTC shall have the right to assign their respective rights and obligations under this Agreement to a party which assumes the Company' or GTC’s respective obligations hereunder.  Consultant shall not have the right to assign his rights or obligations under this Agreement without the prior written consent of the Company, whether by operation of law or otherwise.

11.           HEADINGS.  Headings and subheadings are for convenience only and shall not be deemed to be a part of this Agreement.

12.           AMENDMENTS.  This Agreement constitutes the entire agreement between the Parties hereto and replaces and supersedes all prior consulting and other agreements relating to the subject matter hereof, between the Parties to this Agreement and their affiliates.  This Agreement may be amended or modified, in whole or in part, only by an instrument in writing signed by all Parties hereto.  Any amendment, consent, decision, waiver or other action to be made, taken or given by the Company or GTC with respect to the Agreement shall be made, taken or given on behalf of the Company or GTC only by authority of the Company’s or GTC’s respective Boards of Directors.

13.           NOTICES.  Any notices or other communications required hereunder shall be in writing and shall be deemed given when delivered in person or when mailed, by certified or registered first class mail, postage prepaid, return receipt requested, addressed to the Parties at their addresses specified in the preamble to this Agreement or to such other addresses of which a Party shall have notified the others in accordance with the provisions of this Section 13; provided, however, the address set forth above for the Company shall be used only for personal or courier delivery and if notice is to be sent by mail, it shall be sent to the Company at Mail Code: SWC, Kennedy Space Center, FL 32899.  Any notice or communications to GTC may be sent to the address of the Company.

14.           COUNTERPARTS.  This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall be deemed a single agreement.  Facsimile copies with signatures shall be given the same legal effect as an original.

15.           GOVERNING LAW.  This Agreement shall be construed in accordance with and governed for all purposes by the laws of State of Florida applicable to contracts executed and wholly performed within such jurisdiction, without regard to its internal choice of law analysis. Any dispute arising hereunder shall be referred to and heard only in an appropriate court of competent jurisdiction in Brevard County, Florida.

16.           SURVIVAL.  The provisions of Sections 2(d), 3(c), 5 to 17 of this Agreement shall survive the expiration of the Term or the termination of this Agreement.

17.           INDEMNIFICATION.  The Consultant shall defend, indemnify and hold harmless the Company, GTC and their respective officers, directors, employees, agents, parent, subsidiaries and other affiliates, from and against any and all damages, costs, liabilities and expenses whatsoever (including attorneys’ fees and related disbursements) incurred by reason of (i) any failure by Consultant to perform any covenant or agreement of Consultant set forth herein, (ii) injury to or death of any person or any damage to or loss of property which is due to the negligence and/or willful acts of Consultant, or (iii) any breach by Consultant of any representation, warranty, covenant or agreement under this Agreement.  The Company and GTC shall have the right to offset against any fees or bonuses due Consultant under this Agreement the amount of any indemnity to which the Company is entitled under this Section 17 for damage, cost, liability, expense, fee or disbursement incurred by the Company or GTC.

[Remainder of Page Intentionally Left Blank]

 

 

  

  

  

 

EXECUTED effective as of the Effective Date.

 

 

	WORLD SURVEILLANCE GROUP INC. 	 TRIDENT AERIAL RECON LLC
	 	 
	 	 
	By: /s/ Glenn D. Estrella                                                   	 By: /s/ Drew M. West                                        
	Name: Glenn D. Estrella 	 Name: Drew M. West
	Title: President and CEO 	 Title: President

 

GLOBAL TELESAT CORP.

 

By:/s/ Glenn D. Estrella

Name:  Glenn D. Estrella

Title: Directorexh10_5.htm

Exhibit 10.5

 

 

SHARE CANCELLATION AND ASSIGNMENT AGREEMENT

         This Share Cancellation and Assignment Agreement (the "Agreement") is entered as of December 10, 2014 by and between Denville and Dover Fund LLC (“Denville”) and World Surveillance Group Inc., a Delaware corporation (the "Company" and together with Denville, the “Parties”).

WHEREAS, Denville is the holder of 31,428,571 shares of the Company’s common stock, par value $0.00001 per share (the “Company Shares”) and, with respect to certain of these Company Shares, which were issued pursuant to a Securities Purchase Agreement between the Parties dated May 5, 2014 (the “Purchase Agreement”), Denville holds (i) a right of first refusal on certain future financings, (ii) piggyback registration rights, (iii) certain anti-dilution rights, and (iv) various other rights (collectively, the “Rights”);

WHEREAS, the Company is the record holder of Ten Million (10,000,000) shares of Series D Convertible Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), of Drone Aviation Holding Corp. (“Drone” and the shares of Preferred Stock, the “Drone Shares”);

WHEREAS, the Company and Denville entered into a Consulting Agreement dated May 5, 2014 (the “Consulting Agreement”), which the Parties have agreed to terminate; and

WHEREAS, Denville has agreed to return the Company Shares to the Company for cancellation, to terminate the Rights and to terminate the Consulting Agreement in consideration for the assignment of 3,000,000 of the Drone Shares (the “Assigned Drone Shares”) to Denville.

NOW, THEREFORE, in consideration of the mutual conditions and covenants contained in this Agreement, and for other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, it is hereby stipulated, consented to and agreed by and among the Parties as follows:

ARTICLE I

 

CANCELLATION AND ASSIGNMENT

1.1 Cancellation Of Company Shares and Assignment of Drone Shares.  On the date hereof, Denville shall deliver certificates or a DRS statement for the Company Shares along with an irrevocable cancellation instruction (substantially in the form of Exhibit A annexed hereto) to the Company’s stock transfer agent for its common stock, American Stock Transfer & Trust Company, LLC for cancellation of the Company Shares, and the Company shall deliver to Denville (i) a lockup waiver substantially in the form of Exhibit B annexed hereto duly executed by the Company and Drone and (ii) certificate(s) or a DRS statement representing the Assigned Drone Shares along with duly endorsed medallion guarantee(s), executed in blank, along with an irrevocable letter of instruction for transfer to Denville (substantially in the form of Exhibit C annexed hereto) as full consideration for the return and cancellation of the Company Shares held by Denville.  By execution of this Agreement and upon delivery of the Assigned Drone Shares for transfer, Denville hereby terminates the Rights granted to it pursuant to the Purchase Agreement.

1.2 Termination of Consulting Agreement.  On the date hereof, the Parties hereby agree that the Consulting Agreement is terminated and of no further force or effect.

1.3 The Closing.   The closing of the transactions contemplated herein (the “Closing”) shall take place on or prior to December 10, 2014  promptly following the execution hereof or at such later date as to which the parties shall agree.

  

1

  

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES; INDEMNITIES

2.1           Representations and Warranties of the Company. Except as set forth in any disclosure schedule accompanying this Agreement which shall qualify any representations and warranties set forth herein, the Company hereby makes the following representations and warranties to the Denville:

(A)     Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into, and to consummate the transactions contemplated by, this Agreement and otherwise to carry out its obligations hereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company, and no further action is required by the Company.  Each of the documents contemplated by this Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof and assuming the due authorization, execution and delivery by Denville of each of the documents, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights generally from time to time in effect, and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law.

(B)           Ownership.                      The Company owns and is conveying to Denville all of its rights, title and interests to the Assigned Drone Shares, free and clear of all liens, mortgages, pledges, security interests, encumbrances or charges of any kind or description. Assuming the accuracy of the representations and warranties of Denville contained herein, upon consummation of the transaction contemplated hereby, good title in the Assigned Drone Shares shall vest in Denville free of all liens and other charges.  Except as set forth in the Disclosure Schedule, there is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Company’s knowledge, threatened against the Company or any of the Company’s properties.  Except as set forth in the Disclosure Schedule, there is no judgment, decree or order against the Company that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. No bankruptcy, receivership or debtor relief proceedings are pending or, to the Company’s knowledge, threatened against the Company.

(C)           No Consents, Approvals, Violations or Breaches. Neither the execution and delivery of this Agreement by the Company, nor the consummation by the Company of the transactions contemplated hereby, will (i) require any consent, approval, authorization or permit of, or filing, registration or qualification, with or prior notification to, any governmental or regulatory authority under any law of the United States, any state or any political subdivision thereof applicable to the Company other than the filing of a Form 8-K pursuant to the rules and regulations promulgated by the Securities and Exchange Commission, (ii) violate any statute, law, ordinance, rule or regulation of the United States, any state or any political subdivision thereof, or any judgment, order, writ, decree or injunction applicable to the Company or any of the Company’s properties or assets, the violation of which would have a material adverse effect upon the Company, or (iii) violate, conflict with, or result in a breach of any provisions of, or constitute a default (or any event which, with or without due notice or lapse of time, or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which the Company is a party or by which the Company or any of the Company’s properties or assets may be bound, which would have a material adverse effect upon the Company.

(D)           Business of Drone.  The Company is aware of Drone’s business affairs and financial condition and has reached an informed and knowledgeable decision to assign the Assigned Drone Shares to Denville. The Company expressly warrants and represents that (i) Denville has not made, and the Company disclaims the existence of or its reliance on, any representation by Denville concerning Drone or the Assigned Drone Shares; (ii) to its knowledge, the Company has no claims against Denville with respect to the foregoing and if any such claim may exist, the Company, recognizing its disclaimer of reliance and Denville’s reliance on such disclaimer as a condition to entering into this transaction, covenants and agrees not to assert it against Denville or any of Denville’s respective partners, representatives, agents or affiliates; and (iii) the Company waives and releases any claim that it might have against Denville or any of Denville’s respective partners, representatives, agents and affiliates whether under applicable securities law or otherwise, based on Denville’s knowledge, possession or nondisclosure to the Company of any material, non-public information concerning Drone or its direct and indirect subsidiaries.

 

 

  

2

  

 

2.2           Representations and Warranties of Denville.  Denville represents and warrants to the Company as follows:

(A)           Authorization; Enforcement.  Denville has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by Denville and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Denville, and no further action is required by Denville.  Each of the documents contemplated by this Agreement has been duly executed by Denville and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of Denville enforceable against Denville in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights generally from time to time in effect, and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law. There is no judgment, decree or order against Denville that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement.

(B)           No Consents, Approvals, Violations or Breaches. Neither the execution and delivery of this Agreement by Denville, nor the consummation by Denville of the transactions contemplated hereby, will (i) require any consent, approval, authorization or permit of, or filing, registration or qualification with, or prior notification to, any governmental or regulatory authority under any law of the United States, any state or any political subdivision thereof applicable to Denville, (ii) violate any statute, law, ordinance, rule or regulation of the United States any state or any political subdivision thereof, or any judgment, order, writ, decree or injunction applicable to Denville or any of its properties or assets, the violation of which would have a material adverse effect upon Denville, or (iii) violate, conflict with, or result in a breach of any provisions of, or constitute a default (or any event which, with or without due notice or lapse of time or both would constitute a default) under, or result in the termination of, or accelerate the performance required by, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or other instrument or obligation to which Denville is a party or by which Denville or any of its respective properties or assets may be bound, which would have a material adverse effect upon Denville.

(C)           Accredited Investor.  Denville (i) is an “accredited investor,” as that term is defined in Regulation D under the Securities Act; (ii) has such knowledge, skill and experience in business and financial matters, based on actual participation, that Denville is capable of evaluating the merits and risks of an investment in Drone and the suitability thereof as an investment for Denville; (iii) has received such documents and information as it has requested and has had an opportunity to ask questions of representatives of Drone concerning the terms and conditions of the investment proposed herein, and such questions were answered to the satisfaction of Denville; and (iv) is in a financial position to hold the Assigned Drone Shares for an indefinite time and is able to bear the economic risk and withstand a complete loss of its investment in Drone.

 

ARTICLE III

MUTUAL RELEASE

3.1             Company Release.  The Company does hereby irrevocably release, cancel, forgive and forever discharge Denville, each of its agents, affiliates, divisions, heirs, successors and assigns, and all of their officers, directors and employees (the “Denville Parties”), from all actions, claims, demands, damages, obligations, liabilities, controversies and executions, of any kind or nature whatsoever, in law or in equity, whether known or unknown, whether suspect or not, which the Company now has or may, can or shall have in the future against the Denville Parties that have arisen, or may have arisen, based upon or by reason of any matter, cause or thing from the first day of the world, through and including the date hereof, except only the obligations and agreements contained in this Agreement, and the Company does specially waive any claim or right to assert any cause of action or alleged cause of action or claim or demand which has, through oversight or error intentionally or unintentionally or through a mistake, been omitted from this Agreement.

 

 

  

3

  

 

3.2             Denville Release.  Denville does hereby irrevocably release, cancel, forgive and forever discharge the Company, each of its agents, affiliates, divisions, heirs, successors and assigns, and all of their officers, directors and employees (the “Company Parties”), from all actions, claims, demands damages, obligations, liabilities, controversies and executions, of any kind or nature whatsoever, in law or in equity, whether known or unknown, whether suspect or not, which Denville now has or may, can or shall have in the future against the Company Parties that have arisen, or may have arisen, based upon or by reason of any matter, cause or thing from the first day of the world, through and including the date hereof except only the obligations and agreements contained in this Agreement, and Denville does specially waive any claim or right to assert any cause of action or alleged cause of action or claim or demand which has, through oversight or error intentionally or unintentionally or through a mistake, been omitted from this Agreement.

 

ARTICLE IV

MISCELLANEOUS

4.1           Entire Agreement; Amendments.  The Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters.

4.2           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Agreement prior to 6:30 p.m. (New York City time) on a business day, (ii) the business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) upon actual receipt by the party to whom such notice is required to be given at such address as set forth on the signature pages hereto or as such party may designate from time to time.  The transmission confirmation receipt from the sender’s facsimile machine shall be evidence of successful facsimile delivery.  Time shall be counted from the date of transmission.

4.3             Applicable Law, Venue and Jury Trial Waiver.   This Agreement, the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the laws of the State of New York without regard to the choice of law principles thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the State of New York located in The City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby, and hereby irrevocably waives any objection that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

4.4           Survival.  The representations, warranties, agreements and covenants contained herein shall survive the Closing.

4.5           Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature page were an original thereof.

4.6           No Waiver.   The waiver by any party of the breach of any of the terms and conditions of, or any right under, this Agreement shall not be deemed to constitute the waiver of any other breach of the same or any other term or condition or of any similar right.  No such waiver shall be binding or effective unless expressed in writing and signed by the party giving such waiver.

 

 

  

4

  

 

4.7           Construction. The article and section headings contained in this agreement are inserted for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

4.8           Further Assurances.  Each party will execute and deliver such further agreements, documents and instruments and take such further action as may be reasonably requested by the other party to carry out the provisions and purposes of this Agreement.

4.9.           Attorneys’ Fees.  In the event that it should become necessary for any party entitled hereunder to bring suit against any other party to this Agreement for a breach of this Agreement, the parties hereby covenant and agree that the party who is found to be in breach of this Agreement shall also be liable for all reasonable attorneys’ fees and costs of court incurred by the other parties.  Provided, however, in the event that there has been no breach of this Agreement, whether or not the transactions contemplated hereby are consummated, each party shall bear its own costs and expenses (including any fees or disbursements of its counsel, accountants, brokers, investment bankers, and finder’s fees).

4.10.           Acknowledgement and Waiver.  The Company and Denville each hereby acknowledge that: Sichenzia Ross Friedman Ference LLP serves as counsel to Drone.  Such firm does not represent either of the Company or Denville.  The Company and Denville each has been advised by the foregoing counsel that in connection with this Agreement and the matters described herein, each of the Company and Denville should retain counsel of its choice with respect to this Agreement and the matters herein, and to obtain the advice of other counsel inasmuch as important rights may be involved or affected relative to the matters herein.  No presumption against any party to this Agreement shall be asserted as a result of the drafting of or in connection with the drafting and negotiation of this Agreement and ancillary agreements.

[SIGNATURE PAGE FOLLOWS]

 

  

5

  

 

[SIGNATURE PAGE TO CANCELLATION AND ASSIGNMENT OF SHARES AGREEMENT]

 

 

THE COMPANY:

WORLD SURVEILLANCE GROUP INC.

/s/ Glenn D. Estrella                                                                              

By:   Glenn D. Estrella

Title:  President

Address for Notice by personal or courier delivery:

 

State Road 405, Building M6-306A, Room 1400

Kennedy Space Center, FL 32815

Attn: President

Address for Notice by U.S. Mail:

Mail Code: SWC

Kennedy Space Center, FL 32899

Attn:  President

Facsimile: 3210452-8965

DENVILLE AND DOVER FUND LLC

By: Paradox Capital Partners, LLC, its Managing Member

/s/ Harvey Kesner                                                                                

By: Harvey Kesner

Title: Manager and Sole Member

Address for Notice:  4 South Orange Avenue, Unit No. 170

South Orange, NJ 07079

Attn: Denville and Dover

 

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]