Document:

Exhibit 10.2 Warrants

     

    AMERICAN
      SECURITY RESOURCES CORPORATION

     

     

    WARRANT

     

     

    THIS
      WARRANT AND THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
      STATE SECURITIES LAW, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED
      OR
      OTHERWISE DISPOSED OF UNLESS (i) A REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT, AND APPLICABLE STATE SECURITIES LAWS, SHALL HAVE BECOME EFFECTIVE WITH
      REGARD TO THE WARRANT SHARES, OR (ii) AN EXEMPTION FROM REGISTRATION UNDER
      THE
      SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS IS AVAILABLE IN CONNECTION
      WITH SUCH OFFER, SALE OR TRANSFER.

     

     

    AN
      INVESTMENT IN THESE SECURITIES INVOLVES A HIGH DEGREE OF RISK. HOLDERS MUST
      RELY
      ON THEIR OWN ANALYSIS OF THE INVESTMENT AND ASSESSMENT OF THE RISKS INVOLVED.
      

     

    

    Warrant
      to Purchase

    2,000,000
      shares

    

    Warrant
      to Purchase Common Stock

    of

    American
      Security Resources Corporation 

    

     

    THIS
      CERTIFIES that Goldbridge Capital, LLC, (the “Holder”) or any subsequent holder,
      has the right to purchase from American Security Resources Corporation, a Nevada
      corporation (the "Company"), up to 2,000,000 fully paid and nonassessable shares
      of the Company's common stock, $0.001 par value per share ("Common Stock"),
      subject to adjustment as provided herein, at a price equal to Thirty Cents,
      ($0.30) per share , at any time beginning on the Date of Issuance (defined
      below) and ending at 5:00 p.m., New York, New York time the date that is three
      (3) years after the Date of Issuance (the “Exercise Period”).

     

     

    Holder
      agrees with the Company that this Warrant to Purchase Common Stock of the
      Company (this “Warrant”) is issued and all rights hereunder shall be held
      subject to all of the conditions, limitations and provisions set forth
      below.

     

     

    1.  Date
      of Issuance, Term, and Vesting of Warrant Rights.

     

     

    The
      issuance date of this warrant is October ____ , 2004. (“Date of Issuance”). The
      term of this Warrant is three (3) years from the Date of Issuance, (the
“Term”).

     

     

    This
      Warrant is exercisable as to one-half of the Warrant Shares ten business days
      after the Company has received the Closing Documents from Holder, i.e., the
      end
      of the Due Diligence Period, as the same may be extended, as referenced in
      the
      Discretionary Drawdown Offering Term Sheet Agreement dated on or about October
      4, 2004, between Holder and Company (the “Letter of Agreement”). This Warrant is
      exercisable as to an additional one-eighth of the Warrant Shares after each
      of
      the first four six-month anniversary dates of the Date of Issuance.

     

     

    If
      the
      Company does not execute the Closing Documents, this Warrant shall be
      exercisable for no more than one-half of the Warrant Shares, and if the Company
      terminates the Discretionary Drawdown Offering transaction in writing before
      the
      end of the Due Diligence Period, this Warrant shall not be exercisable for
      any
      shares of the Company and shall be returned to the Company by the
      Holder.

     

     

    2.  Exercise.

     

     

    (a)  Manner
      of Exercise.
      During
      the Term of this Warrant, it may be exercised as to all or any lesser number
      of
      full shares of Common Stock upon surrender of this Warrant, with the Exercise
      Form, attached as Exhibit
      A
      (the
“Exercise Form”) together with the full Exercise Price (as defined below) for
      each share of Common Stock for which this Warrant is exercised, at the office
      of
      the Company, or at such other office or agency as the Company may designate
      in
      writing, with an advance copy of the Exercise Form sent to the Company and
      its
      Transfer Agent. 

     

     

    (b)  Date
      of Exercise. The
      "Date
      of Exercise" of the Warrant shall be the date that the advance copy of the
      completed and executed Exercise Form is sent by facsimile to the Company,
      provided that the original Warrant and Exercise Form are received by the Company
      as soon as practicable thereafter. If the Holder has not sent advance notice
      by
      facsimile, the Date of Exercise shall be the date the original Exercise Form
      is
      received by the Company.

     

     

    (c)  Cancellation
      of Warrant. As
      soon
      as practical after the Date of Exercise Holder shall be entitled to receive
      Common Stock for the number of shares purchased upon the Exercise of this
      Warrant, and if this Warrant is not exercised in full, Holder shall be entitled
      to receive a new Warrant (containing terms identical to this Warrant)
      representing any unexercised portion of this Warrant in addition to the Common
      Stock purchased. 

     

     

    (d)  Holder
      of Record.
      The
      person or entity whose name appears on this Warrant shall be deemed to
      be the
      Holder of record of such shares on the Date of Exercise of this Warrant. Nothing
      in this Warrant shall be construed as conferring upon Holder any rights as
      a
      stockholder of the Company.

     

     

    3.  Payment
      of Warrant Exercise Price.

     

     

    The
      Exercise Price per share (“Exercise Price”) shall initially equal $0.30. If the
      Date of Exercise is more than six (6) months after the Date of Issuance, the
      Exercise Price shall be reset on each six month anniversary of the Date of
      Issuance to equal the lesser of (i) the then current Exercise Price, or (ii)
      105% of the lowest Closing Bid Price during the ten trading days immediately
      preceding the six-month anniversary date. Payment of the Exercise Price may
      be
      made in
      any of the following ways, at the election of Holder:

     

     

    (i)  Cash
      Exercise: cash,
      bank or cashiers check or wire transfer; or

     

     

    (ii)  Cashless
      Exercise: The
      Holder, at its option, may exercise this Warrant in a cashless exercise
      transaction under this subsection.

     

    

     

    In
      order
      to effect a Cashless Exercise, the Holder shall surrender
      this Warrant together with notice of cashless election, in which event the
      Company shall issue Holder
      a number
      of shares of Common Stock computed using the following formula:

     

    X
      = Y
      (A-B)/A

    

    where:

    X
      = the
      number of shares of Common Stock to be issued to Holder.

    

    Y
      = the
      number of shares of Common Stock for which this Warrant is being exercised.

    

    A
      = the
      Market Price of one (1) share of Common Stock (for purposes of this Section
      3(ii), the "Market Price" shall be defined as the Closing Bid Price of the
      Common Stock for the trading day prior to the Date of Exercise (the "Closing
      Bid
      Price"), as reported by the principal market on which the stock is traded.
      If
      the Common Stock is/was not traded during the trading day prior to the Date
      of
      Exercise, then the closing bid price for the last publicly traded day shall
      be
      deemed to be the closing bid price.

    

    B
      = the
      Exercise Price.

    

     

    For
      purposes hereof, the term “Closing Bid Price” shall mean the last price at which
      a trade was executed on the Nasdaq Small Cap Market, the Nasdaq National Market
      System (“NMS”), the American Stock Exchange, or the New York Stock Exchange, or
      if not traded in one of these exchanges or markets, the “Closing Bid Price”
shall equal the higher bid price listed at closing on the principal national
      securities exchange or the over-the-counter system on which the Common Stock
      is
      so traded and, if not available, the last closing bid price as reported by
      National Quotation Bureau, Inc. prior to the Date of Exercise.

     

     

    For
      purposes of Rule 144 and Section (3)(ii) hereof, it is intended, understood
      and
      acknowledged that the Common Stock issuable upon exercise of this Warrant in
      a
      cashless exercise transaction shall be deemed to have been acquired at the
      time
      this Warrant was issued. Moreover, it is intended, understood
      and
      agreed that the holding period for the Common Stock issuable upon exercise
      of
      this Warrant in a cashless exercise transaction shall have commenced on the
      date
      this Warrant was issued.

     

     

    4.  Transfer
      and Registration.

     

     

    (a)  Transfer
      Rights. Subject
      to Section 8, this Warrant may be transferred on the books of the Company,
      in
      whole or in part, upon surrender of this Warrant properly completed and
      endorsed. As soon as practicable, the person to whom a transfer is made shall
      be
      entitled to receive a new Warrant or Warrants as to the portion of this Warrant
      transferred, and Holder shall be entitled to receive a new Warrant as to the
      portion retained. 

     

     

    (b)  Registrable
      Securities. In
      addition to any other registration rights of the Holder, if the Common Stock
      issuable upon exercise of this Warrant is not registered for resale at the
      time
      the Company proposes to register (including for this purpose a registration
      effected by the Company for stockholders other than the Holders) any of its
      Common Stock under the Act (other than a registration relating solely for the
      sale of securities to participants in a Company stock plan or a registration
      on
      Form S-4 promulgated under the Act or any successor or similar form registering
      stock issuable upon a reclassification, upon a business combination involving
      an
      exchange of securities, or upon an exchange offer for securities of the issuer
      or another entity)(a “Piggyback Registration Statement”), the Company shall
      cause to be included in such Piggyback Registration Statement (“Piggyback
      Registration”) all of the Common Stock issuable upon the exercise of this
      Warrant (“Registrable Securities”) to the extent such inclusion does not violate
      the registration rights of any other securityholder of the Company granted
      prior
      to the Date of Issuance; provided, however, that with respect to any particular
      Registrable Security, such security shall cease to be a Registrable Security
      when, as of the date of determination, (i) it has been effectively registered
      under the Act and disposed of pursuant thereto or (ii) registration under the
      Act is no longer required for immediate public distribution within a 90-day
      period of such security as a result of the provisions of Rule 144. 

     

     

    (c)  Limitation
      on Obligations to Register. In
      the
      case of an underwritten public offering by the Company, if the managing
      underwriter determines and advises in writing that the inclusion in the
      registration statement of all Registrable Securities proposed to be included
      would interfere with the successful marketing of the securities proposed to
      be
      registered by the Company, then the number of such Registrable Securities to
      be
      included in the Piggyback Registration Statement shall be allocated among all
      Holders who had requested Piggyback Registration in the proportion that the
      number of Registrable Securities which each such Holder seeks to register bears
      to the total number of Registrable Securities sought to be included by all
      Holders.

     

     

    5.  Anti-Dilution
      Adjustments.

     

     

    (a)  Stock
      Dividend. If
      the
      Company shall at any time declare a dividend payable in shares of Common Stock,
      then Holder, upon Exercise of this Warrant after the record date for the
      determination of holders of Common Stock entitled to receive such dividend,
      shall be entitled to receive upon Exercise of this Warrant, in addition to
      the
      number of shares of Common Stock as to which this Warrant is exercised, such
      additional shares of Common Stock as such Holder would have received had this
      Warrant been exercised immediately prior to such record date and the Exercise
      Price will be proportionately adjusted.

     

     

    (b)  Recapitalization
      or Reclassification.
      

     

     

    (i)  Stock
      Split.
      If the
      Company shall at any time effect a recapitalization, reclassification or other
      similar transaction of such character that the shares of Common Stock shall
      be
      changed into or become exchangeable for a larger number of shares (a “Stock
      Split”), then upon the effective date thereof, the number of shares of Common
      Stock which Holder shall be entitled to purchase upon Exercise of this Warrant
      shall be increased in direct proportion to the increase in the number of shares
      of Common Stock by reason of such recapitalization, reclassification or similar
      transaction, and the Exercise Price shall be proportionally decreased.

     

     

    (ii)  Reverse
      Stock Split.
      If the
      Company shall at any time effect a recapitalization, reclassification or other
      similar transaction of such character that the shares of Common Stock shall
      be
      changed into or become exchangeable for a smaller number of shares (a “Reverse
      Stock Split”), then upon the effective date thereof, the number of shares of
      Common Stock which Holder shall be entitled to purchase upon Exercise of this
      Warrant shall be proportionately decreased and the Exercise Price shall be
      proportionally increased. The Company shall give Holder the same notice it
      provides to holders of Common Stock of any transaction described in this Section
      5(b).

     

     

    (c)  Distributions.
      If
      the
      Company shall at any time distribute, for no consideration, to holders of Common
      Stock cash, evidences of indebtedness or other securities or assets (other
      than
      cash dividends or distributions payable out of earned surplus or net profits
      for
      the current or preceding years) then, Holder shall be entitled to receive,
      upon
      Exercise of this Warrant, with respect to each share of Common Stock issuable
      upon such exercise, the amount of cash or evidences of indebtedness or other
      securities or assets which Holder would have been entitled to receive with
      respect to each such share of Common Stock as a result of the happening of
      such
      event had this Warrant been exercised immediately prior to the record date
      or
      other date fixing shareholders to be affected by such event (the "Determination
      Date") or, in lieu thereof, if the Board of Directors of the Company should
      so
      determine at the time of such distribution, a reduced Exercise Price determined
      by multiplying the Exercise Price on the Determination Date by a fraction,
      the
      numerator of which is the result of such Exercise Price reduced by the value
      of
      such distribution applicable to one share of Common Stock (such value to be
      determined by the Board of Directors of the Company in its discretion) and
      the
      denominator of which is such Exercise Price. 

     

     

    (d)  Notice
      of Consolidation
      or Merger. In
      the
      event of a merger, consolidation, exchange of shares, recapitalization,
      reorganization, or other similar event, as a result of which shares of Common
      Stock shall be changed into the same or a different number of shares of the
      same
      or another class or classes of stock or securities or other assets of the
      Company or another entity or there is a sale of all or substantially all the
      Company’s assets (a “Corporate Change”), then this Warrant shall be exerciseable
      into such class and type of securities or other assets as Holder would have
      received had Holder exercised this Warrant immediately prior to such Corporate
      Change. 

     

     

    (e)  Exercise
      Price Adjusted. No
      adjustment under this Section 5 shall be made unless such adjustment would
      change the Exercise Price at the time by $.01 or more; provided, however, that
      all adjustments not so made shall be deferred and made when the aggregate
      thereof would change the Exercise Price at the time by $.01 or more.

     

     

    (f)  Adjustments:
      Additional Shares, Securities or Assets. In
      the
      event that at any time, as a result of an adjustment made pursuant to this
      Section 5, Holder shall, upon Exercise of this Warrant, become entitled to
      receive shares and/or other securities or assets (other than Common Stock)
      then,
      wherever appropriate, all references herein to shares of Common Stock shall
      be
      deemed to refer to and include such shares and/or other securities or assets;
      and thereafter the number of such shares and/or other securities or assets
      shall
      be subject to adjustment from time to time in a manner and upon terms as nearly
      equivalent as practicable to the provisions of this Section 5.

     

     

    6.  No
      Fractional Interests.

     

     

    No
      fractional shares or scrip representing fractional shares shall be issuable
      upon
      the Exercise of this Warrant, but on Exercise of this Warrant, Holder may
      purchase only a whole number of shares of Common Stock. If, on Exercise of
      this
      Warrant, Holder would be entitled to a fractional share of Common Stock or
      a
      right to acquire a fractional share of Common Stock, such fractional share
      shall
      be disregarded and the number of shares of Common Stock issuable upon exercise
      shall be the next higher number of shares.

     

     

    7.  Reservation
      of Shares.

     

     

    The
      Company shall at all times reserve for issuance such number of authorized and
      unissued shares of Common Stock (or other securities substituted therefor as
      herein above provided) as shall be sufficient for the Exercise of this Warrant
      and payment of the Exercise Price. The Company covenants
      and
      agrees that upon the Exercise of this Warrant, all shares of Common Stock
      issuable upon such exercise shall be duly and validly issued, fully paid,
      nonassessable and not subject to preemptive rights, rights of first refusal
      or
      similar rights of any person or entity.

     

     

    8.  Restrictions
      on Transfer.

     

     

    (a)  Registration
      or Exemption Required. This
      Warrant has been issued in a transaction exempt from the registration
      requirements of the Act by virtue of Regulation D and exempt from state
      registration under applicable state laws. The Warrant and the Common Stock
      issuable upon the Exercise of this Warrant may not be pledged, transferred,
      sold
      or assigned except pursuant to an effective registration statement or unless
      the
      Company has received an opinion from the Company's counsel to the effect that
      such registration is not required, or the Holder has furnished to the Company
      an
      opinion of the Holder's counsel, which counsel shall be reasonably satisfactory
      to the Company, to the effect that such registration is not required; the
      transfer complies with any applicable state securities laws; and, if no
      registration covering the resale of the Warrant Shares is effective at the
      time
      the Warrant Shares are issued, the Holder consents to a legend being placed
      on
      certificates for the Warrant Shares stating that the securities have not been
      registered under the Securities Act and referring to such restrictions on
      transferability and sale.

     

     

    (b)  Assignment.
      If
      Holder
      can provide the Company with reasonably satisfactory evidence that the
      conditions of (a) above regarding registration or exemption have been satisfied,
      Holder may sell, transfer, assign, pledge or otherwise dispose of this Warrant,
      in whole or in part. In such event, Holder shall deliver a written notice to
      Company, substantially in the form of the Assignment attached hereto as
Exhibit
      B,
      indicating the person or persons to whom the Warrant shall be assigned and
      the
      respective number of warrants to be assigned to each assignee. The Company
      shall
      effect the assignment within ten (10) business days, and shall deliver to the
      assignee(s) designated by Holder a Warrant or Warrants of like tenor and terms
      for the appropriate number of shares.

     

     

    9.  Benefits
      of this Warrant.

     

     

    Nothing
      in this Warrant shall confer upon any person other than the Company and Holder
      any legal or equitable right, remedy or claim under this Warrant and this
      Warrant shall be for the sole and exclusive benefit of the Company and
      Holder.

     

     

    10.  Applicable
      Law.

     

     

    This
      Warrant is issued under and shall for all purposes be governed by and construed
      in accordance with the laws of the
      state of
      Texas, without giving effect to conflict of law provisions.

     

     

    11.  Loss
      of Warrant.

     

     

    Upon
      receipt by the Company of evidence of the loss, theft, destruction or mutilation
      of this Warrant, and (in the case of loss, theft or destruction)
      of
      indemnity or security reasonably satisfactory to the Company, and upon surrender
      and cancellation of this Warrant, if mutilated, the Company shall execute and
      deliver an identical new Warrant.

     

     

    12.  Notice
      or Demands.

     

     

    Notices
      or demands to be given or made by Holder to or on the Company shall be
      sufficiently given or made if sent by overnight mail, certified or registered
      mail, return receipt requested, postage prepaid, and addressed to the Company
      as
      set forth in Section 2(a) above. Notices
      or demands to be given or made by the Company to or on Holder shall be
      sufficiently given or made if sent by overnight mail, certified or registered
      mail, return receipt requested, postage prepaid, and addressed, to the address
      of Holder set forth in the Company’s records, until another address is
      designated in writing by Holder.

     

    

     

    IN
      WITNESS WHEREOF, the undersigned has executed this Warrant as of the ___ day
      of
      October, 2004.

     

    

    American
      Security Resources Corporation

    

    

    By:
      ________________________________

    
      
         

         

         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
      A

    

    EXERCISE
      FORM FOR WARRANT

    

    TO:
      American
      Security Resources Corporation

    

     

    The
      undersigned hereby irrevocably exercises the right to purchase ____________
      of
      the shares of Common Stock (the “Common Stock”) of American Security Resources
      Corporation, a Nevada corporation (the “Company”), evidenced by the attached
      warrant (the “Warrant”), and makes payment of the exercise price with respect to
      such shares in full, in accordance with the conditions and provisions of said
      Warrant. This is a (circle one: Cash
      /
Cashless)
      Exercise.

     

    

    1 The
      undersigned agrees not to offer, sell, transfer or otherwise dispose of any
      of
      the Common Stock obtained on exercise of the Warrant, except in accordance
      with
      the provisions of Section 8(a) of the Warrant.

    

    2. The
      undersigned requests that stock certificates for such shares be issued free
      of
      any restrictive legend, if appropriate, and a warrant representing any
      unexercised portion hereof be issued, pursuant to the Warrant in the name of
      the
      undersigned and delivered to the undersigned at the address below:

    

    Goldbridge
      Capital, LLC

    

    Date:
      _______________________________

    

    ____________________________________

    Signature
      / Title

    

    

    Address:
      ______________________________

    

    ______________________________________

    

    ______________________________________

    

    NOTICE

    

    The
      signature to the foregoing Exercise Form must correspond to the name as written
      upon the face of the attached Warrant in every particular, without alteration
      or
      enlargement or any change whatsoever, or if for an entity other than an
      individual, must be the authentic signature of an authorized signer with the
      power to act for that entity.

    ________________________________________________________________________

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    EXHIBIT
      B

    ASSIGNMENT

    (To
      be
      executed by a Holder

    desiring
      to transfer the Warrant)

    

    FOR
      VALUE
      RECEIVED, the undersigned Holder of the attached warrant (the “Warrant”) hereby
      sells, assigns and transfers to the person or persons named below the right
      to
      purchase _______ shares of the Common Stock of American Security Resources
      Corporation, evidenced by the attached Warrant and does irrevocably constitute
      and appoint the Company attorney to transfer the said Warrant on the books
      of
      the Company, with full power of substitution in the premises.

    
      

      Goldbridge
        Capital, LLC

      

      Date:
        _______________________________

      

      ____________________________________

      Signature
        / Title

      

      

      Address:
        ______________________________

      

      ______________________________________

      

      ______________________________________

    

    

    

    
      	
              Assignee
                1:

            
	
              Name:
                ___________________________

            
	
              Number
                of Shares Transferred: ________

            
	
              Address:
                _________________________

            
	 
	 

    

    

    
      	
              Assignee
                2:

            
	
              Name:
                _____________________________

            
	
              Number
                of Shares Transferred: __________

            
	
              Address:
                ___________________________Exhibit 10.3 Warrants

    SUBSCRIPTION
      AGREEMENT

    KAHUNA
      NETWORK SECURITY, INC.

    (a
      Nevada
      corporation)

    

    Kahuna
      Network Security, Inc., a Nevada corporation (“Company”) (formerly known as
      Computer Automation Systems, Inc.), is offering up to 2,500,000 units (“Units”)
      at a purchase price of $0.20
      per
      Unit. Each Unit consists of (a) one share of Company common stock (“Common
      Stock”); (b) one class A warrant to purchase one share of Common Stock at an
      exercise price of $0.30 per share (“Class A Warrant”); (c) one class B warrant
      to purchase one share of Common Stock at an exercise price of $0.40 per share
      (“Class B Warrant”); (d) one class C warrant to purchase one share of Common
      Stock at an exercise price of $0.50 per share (“Class C Warrant”); (e) one class
      D warrant to purchase one share of Common Stock at an exercise price of $0.60
      per share (“Class D Warrant”); (f) one class E warrant to purchase one share of
      Common Stock at an exercise price of $0.70 per share (“Class E Warrant”); (g)
      one class F warrant to purchase one share of Common Stock at an exercise price
      of $0.80 per share (“Class F Warrant”); and (h) one class G warrant to purchase
      one share of Common Stock at an exercise price of $0.90 per share (“Class G
      Warrant”) (collectively the “Warrants”). Each of the Warrants expires on
      December 31, 2006 and is redeemable by the Company, at $0.01 per Warrant, in
      the
      event that the closing bid price of the Common Stock equals or exceeds 200%
      of
      the exercise price for twenty out of thirty consecutive trading days during
      the
      term of the Warrant.

    

    The
      Units
      are being offered to a limited number of Accredited Investors on a “best
      efforts” 1,250,000 Units or $250,000 minimum (the “minimum”) up to 2,500,000
      Units or $500,000 maximum (the “maximum”) through our officers and directors.
      The Units are being sold in denominations of 50,000 Units, or $10,000. With
      respect to the shares of Common Stock, the Warrants and the shares of Common
      Stock underlying the Warrants purchased in this offering, each investor will
      receive one “demand” registration right. 

     

    This
      Offering is also conditioned upon obtaining shareholders to effect (i) a 1-for-4
      reverse split of all issued and outstanding Common Stock and (ii) an amendment
      to the Articles of Incorporation increasing the Common Stock from 15,000,000
      shares to 200,000,000 shares. Each of these conditions was satisfied on
January
      20, 2004,
      there
      are a total of 32,500,000 shares of Common Stock outstanding and 17,500,000
      shares of Common Stock reserved for issuance upon exercise of the above
      referenced Warrants. Additionally, you will be issued shares of Common Stock
      and
      the Warrants attached hereto as Appendices A-G and a Demand Registration Rights
      Agreement in the form attached hereto as Appendix R.

    

    The
      Company reserves the right to accept or reject any subscription, in whole or
      in
      part, and any subscription that is not accepted will be returned without
      interest. All proceeds from the sale of the Units will be held in a
      non-interest
      bearing escrow account until closing. If subscriptions for at least 1,250,000
      Units have been received prior to April 30, 2004, an initial closing will be
      held as soon as practical thereafter, whereupon such subscriptions shall be
      accepted together with the payments therefor and the funds from escrow will
      be
      released to the Company. If subscriptions for 1,250,000 Units have not been
      accepted by April 30, 2004, all subscription funds will be returned to
      subscribers without interest. 

     

    INSTRUCTIONS
      TO INVESTORS

     

    Persons
      wishing to subscribe for Units in the Company must perform the
      following:

    

    
      	 	
              1.

            	
              Complete
                and execute with
                a signature
                the Subscription Agreement on pages 4 to
                6.

            

    

    

    2. Make
      check payable to: “Kahuna
      Network Security, Inc. - Escrow Account” for shares purchased.

    

    3. Please
      retain the Warrant Agreements (A-G) for your files.

    

    4. Execute
      with
      a signature
      page 5
      of Schedule B (Holder Section of Registration Rights
      Agreement).

    
      
        C:\Clients\American
          Security Resources Corp\Financial Statements\Exhibits\KHNA-20 Sub Agrmt
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    SUBSCRIPTION
      AGREEMENT

    IN

    KAHUNA
      NETWORK SECURITY, INC.

    

    

    L.
      Edward
      Parker, Chief Executive Officer

    Kahuna
      Network Security, Inc.

    6371
      Richmond, Suite 200

    Houston,
      Texas 77057

    

    1. SUBSCRIPTION.
      The
      undersigned (often referred to individually as “Purchaser” or “Shareholder” or
“you”) hereby makes application to become an investor in Kahuna
      Network Security,
      Inc., a
      Nevada corporation (“Company”) (formerly known as Computer Automation Systems,
      Inc.), and to purchase Units at a price of $0.20 per Unit. This subscription
      may
      be rejected by the Company in its sole discretion.

    

    2. ACCEPTANCE
      OF SUBSCRIPTION.
      It is
      understood and agreed that the Company shall have the right, at any time prior
      to receipt of notice of cancellation from the undersigned to accept or reject
      this Subscription Agreement, in whole or in part, and that the same shall be
      deemed to be accepted by the Company only when it is signed by the Chief
      Executive Officer.

    

    3. REPRESENTATIONS
      BY THE UNDERSIGNED.
      The
      undersigned represents and warrants as follows:

    

    
      	 	 	
              a.

            	
              The
                undersigned has carefully reviewed and understands this Subscription
                Agreement, the Form 10-KSB filed May 20, 2003, the Form 10-QSB filed
                June
                12, 2003, the Form 10-QSB filed September 23, 2003 and the Form 10-QSB
                filed November 21, 2003. The undersigned also understands that Ed
                Parker
                and Joe Grace are the sole officers and the directors are Ed Parker,
                Joe
                Grace and Mike Cherry;

            

    

    

    
      	 	 	
              b.

            	
              The
                undersigned is purchasing the Units based solely on this Subscription
                Agreement (and the documents referred to in 3a above), as well as
                the
                exhibits attached hereto; the undersigned acknowledges he/she has
                read all
                documents incorporated by reference into this Subscription
                Agreement;

            

    

    

    
      	 	 	
              c.

            	
              The
                undersigned recognizes that the Units, or the securities underlying
                the
                Units, have not been registered under the Securities Act of 1933,
                as
                amended (“Act”), nor under the securities laws of any state and,
                therefore, cannot be resold unless resale of the Units, or the common
                stock underlying the Units, is registered under the Act or unless
                an
                exemption from registration is available; no public agency has passed
                upon
                the accuracy or adequacy of the information contained in this Subscription
                Agreement or the fairness of the terms of the
                offering;

            

    

    

    
      	 	 	
              d.

            	
              The
                undersigned is acquiring the Units for his own account for long-term
                investment and not with a view toward resale, fractionalization or
                division, or distribution thereof, and he does not presently have
                any
                reason to anticipate any change in his circumstances, financial or
                otherwise, or particular occasion or event which would necessitate
                or
                require his sale or distribution of the Units. No one other than
                the
                undersigned has any beneficial interest in said
                securities;

            

    

    

    
      	 	 	
              e.

            	
              The
                undersigned is an Accredited Investor as follow:
                

            

    

    

    
      	 	 	 	
              An
                Accredited Investor shall mean any person who comes within any of
                the
                following categories, or who the Company reasonably believes comes
                within
                any of the following categories, at the time of the sale of the securities
                to that person:

            

    

    
      	 	 	 	
              (1)

            	
              Any
                bank as defined in section 3(a)(2) of the Act or savings and loan
                association or other institution as defined in Section 3(a)(5)(A)
                of the
                Act whether acting in an individual or fiduciary capacity; brokers
                and
                dealers registered under Section 15 of the Securities Exchange Act
                of
                1934; an insurance company as defined in section 2(13) of the act;
                an
                investment company registered under the Investment Company Act of
                1940 or
                a business development company as defined in section 2(a)(48) of
                that act;
                a Small Business Investment Company licensed by the U. S. Small Business
                Administration under section 301(c) or (d) of the Small Business
                Investment Act of 1958; an employee benefit plan within the meaning
                of
                Title I of the Employee Retirement Income Security Act of 1974, if
                the
                investment decision is made by a plan fiduciary, as defined in section
                3(21) of such act, which is either a bank, insurance company, or
                registered investment adviser, or if the employee benefit plan has
                total
                assets in excess of $5,000,000;

            

    

    

    
      	 	 	 	
              (2)

            	
              Any
                private business development company as defined in section 202(a)(22)
                of
                the Investment Advisers Act of
                1940;

            

    

    

    
      	 	 	 	
              (3)

            	
              Any
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities offered,
                with
                total assets of more than
                $5,000,000;

            

    

    

    
      	 	 	 	
              (4)

            	
              Any
                director, executive officer, or general partner of the issuer of
                the
                securities being offered or sold, or any director, executive officer,
                or
                general partner of a general partner of that
                issuer;

            

    

    

    
      	 	 	 	
              (5)

            	
              Any
                natural person whose individual net worth, or joint net worth with
                that
                person's spouse, at the time of his purchase exceeds $1,000,000;
                

            

    

    

    
      	 	 	 	
              (6)

            	
              Any
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with that person’s spouse in
                excess of $300,000 in each of those years and has a reasonable expectation
                of reaching that same level in the current
                year;

            

    

    

    
      	 	 	 	
              (7)

            	
              Any
                trust, with total assets in excess of $5,000,000, not formed for
                the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a sophisticated person as described in Rule 506(b)(2)(ii)
                of
                Regulation D; and

            

    

    

    
      	 	 	 	
              (8)

            	
              Any
                entity in which all of the equity owners are Accredited
                Investors.

            

    

    

    
      	 	 	
              f.

            	
              The
                undersigned recognizes that the total amount of funds tendered to
                purchase
                the Units is placed at the risk of the business and may be completely
                lost. The undersigned understands that there can be no assurance
                of
                profitable operations and the purchase of Units as an investment
                involves
                risks;

            

    

    

    
      	 	 	
              g.

            	
              The
                undersigned realizes that the Units cannot readily be sold, that
                it may
                not be possible to sell or dispose of the Units and therefore the
                Units
                must not be purchased unless the undersigned has liquid assets sufficient
                to assure that such purchase will cause no undue financial difficulties
                and the undersigned can provide for current needs and possible personal
                contingencies;

            

    

    

    
      	 	 	
              h.

            	
              The
                undersigned understands that there are substantial restrictions on
                the
                transferability of the Units, and the securities underlying the Units,
                and
                that any certificate or other document evidencing the Units, and
                the
                securities underlying the Units, will have substantially the following
                restrictive legend thereon:

            

    

    

    
      	 	 	 	 	
              “The
                securities represented by this certificate have been acquired for
                investment and have not been registered under the Securities Act
                of 1933,
                as amended ("Act") or the securities laws of any state. Such securities
                may not be sold, pledged, hypothecated or otherwise transferred at
                any
                time except upon registration or upon delivery to the Company of
                an
                opinion of counsel satisfactory to the Company that such registration
                is
                not required or evidence satisfactory to the Company that any such
                transfer will not violate the Act or the securities laws of any
                state.”

            

    

    

    
      	 	 	
              i.

            	
              The
                undersigned has not become aware of the offering of Units by any
                form of
                general solicitation or advertising, including, but not limited to
                advertisements, articles, notices or other communications published
                in any
                newspaper, magazine or other similar media or broadcast over television
                or
                radio or any seminar or meeting where those individuals that have
                attended
                have been invited by any such or similar means of general solicitation
                or
                advertising; and

            

    

    

    
      	 	 	
              j.

            	
              The
                undersigned is a bona fide resident of the state set forth as his
                ྿residence address࿀ in Subscription Agreement, and that (i) if a
                corporation, partnership, trust, or other form of business organization,
                it has its principal office within such state; (ii) if an individual,
                he
                has his principal residence in such state; and (iii) if a corporation,
                partnership, trust, or other form of business organization which
                was
                organized for the specific purpose of acquiring the Units in the
                Company,
                all of its beneficial owners are residents of such
                state.

            

    

    

    4. INDEMNIFICATION.
      It is
      acknowledged that the meaning and legal consequences of the representations
      and
      warranties contained in this Subscription Agreement are understood and the
      undersigned hereby agrees to indemnify and hold harmless the Company and each
      officer thereof from and against any and all loss, damage and liability due
      to
      or arising out of a breach of any of the representations and warranties made
      in
      this Subscription Agreement. The representations and warranties contained herein
      are intended to and shall survive delivery of the Subscription
      Agreement.

    

    5. PURCHASE
      OF UNITS.
      The
      undersigned hereby subscribes to purchase ______________Units

    

    for
      a
      total investment of $_____________________ ($0.20
      per
      Unit). 

    

    

    

    The
      purchase price is being paid herewith by delivery of a check payable to
“Kahuna
      Network Security -- Escrow Account.”

    

    This
      Subscription Agreement is executed on this the _____ day of ________________,
      2004, in the State 

    

    of
      _____________________.

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    
      
         

         

      

      
         

        
          

        

      

      
         

        
          	
                  FOR
                    OFFICE USE ONLY

                
	
                  Name:

                	 
	
                  Cert.
                    Number:

                	 
	
                  Warrant
                    Number:

                	 
	
                  Dated:

                	 
	
                  $
                    Sent: $

                	 	
                  Shares:

                	 

        

        

        TYPE
          OF OWNERSHIP (CHECK ONE)

        

      

    

     

    
      	
              _____ INDIVIDUAL
                OWNERSHIP 

              (one
                signature required)

            	
              _____COMMUNITY
                PROPERTY (one signature if shares are held in one name, i.e., managing
                spouse; two signatures required if interest is held in both
                names)

            

    

    

    
      	
              ___ CORPORATION
                (Please include certified corporate resolution authorizing
                signature.)

            	
              _____PARTNERSHIP
                (Please include a copy of the statement of partnership or partnership
                agreement authorizing signature.)

            

    

    

    
      	
              ___ TRUST
                (Please include name of trust, name of trustee, date trust was formed
                and
                copy of the trust agreement or other authorization.)

            	 

    

    

    

    

    
      	 

    

    Please
      print the exact name (registration)

    Investor
      desires on records of the Company

    

    

    
      	 

    

    Street
      Address  
      [ 
]  Home [  ]  Work                         Suite
      or
      Apt.

    

    
      	 

    

    City,  
      State  
      Zip
      Code

    

    
      	 

    

    Home
      Cell
      Phone

    

    
      	 

    

    Work
      Number

    

    
      	 

    

    Facsimile
      

    

    
      	 

    

    Social
      Security or Taxpayer I.D. Number

    

    
      	 

    

    Email
      Address 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXECUTION

    

    Please
      execute this Subscription Agreement by completing the appropriate section
      below.

    

    
      	 	
              1.

            	
              If
                the subscriber is an INDIVIDUAL,
                complete the following:

            

    

     

    
 

    _______________________________________

    Signature
      of Investor

    

     

    
      	 

Name
      (please type or print)

     

     

    Signature
      of Spouse or Co-Owner if funds are 

    to
      be
      invested as joint tenants by the entirety

    or
      community property.

     

     

    _____________________________________________

    Name
      (please type or print)

    

    

    
      	 	
              2.

            	
              If
                the subscriber is a CORPORATION,
                complete the following:

            

    

    

    
      	 	 	
              The
                undersigned hereby represents, warrants and covenants that the undersigned
                has been duly authorized by all requisite action on the part of the
                corporation listed below (྿Corporation࿀) to acquire the Units and,
                further, that the Corporation has all requisite authority to acquire
                such
                Units.

            

    

    

    
      	 	 	
              The
                officer signing below represents and warrants that each of the above
                representations or agreements or understandings set forth herein
                applies
                to that Corporation and that he has authority under the articles
                of
                incorporation, bylaws, and resolutions of the board of directors
                of such
                Corporation to execute this Subscription Agreement. Such officer
                encloses
                a true copy of the articles of incorporation, the bylaws and, as
                necessary, the resolutions of the board of directors authorizing
                a
                purchase of the investment herein, in each case as amended to
                date.

            

    

    

    

     

    Name
      of
      Corporation (please type or print)

    

    

    By:
      ________________________________

    Name:
      ______________________________

    Title:
      _______________________________

     

    
      
        
           

          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    

    
      
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          Security Resources Corp\Financial Statements\Exhibits\KHNA-20 Sub Agrmt
          - Units
          Offering RegRts 04-02-24.docPage
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              3.

            	
              If
                the subscriber is a PARTNERSHIP,
                complete the following:

            

    

    

    
      	 	 	
              The
                undersigned hereby represents, warrants and covenants that the undersigned
                is a general partner of the partnership named below (“Partnership”), and
                has been duly authorized by the Partnership to acquire the Units
                and that
                he has all requisite authority to acquire such Units for the
                Partnership.

            

    

    

    
      	 	 	
              The
                undersigned represents and warrants that each of the above representations
                or agreements or understandings set forth herein applies to that
                Partnership and he is authorized by such Partnership to execute this
                Subscription Agreement. Such partner encloses a true copy of the
                partnership agreement of said Partnership, as amended to date, together
                with a current and complete list of all partners
                thereof.

            

    

    

     

    Name
      of
      Partnership (please type or print)

    

                                    By:
      ________________________________

    
      Name:
        ______________________________

      Title:
        _______________________________

    

    

    
      	 	
              4.

            	
              If
                the subscriber is a TRUST,
                complete the following:

            

    

    

    
      	 	 	
              The
                undersigned hereby represents, warrants and covenants that he is
                duly
                authorized by the terms of the trust instrument (྿Trust Instrument࿀) for
                the (྿Trust࿀) set forth below to acquire the Units and the undersigned, as
                trustee, has all requisite authority to acquire such Units for the
                Trust.

            

    

    

    
      	 	 	
              The
                undersigned, as trustee, executing this Subscription Agreement on
                behalf
                of the Trust, represents and warrants that each of the above
                representations or agreements or understandings set forth herein
                applies
                to that Trust and he is authorized by such Trust to execute this
                Subscription Agreement. Such trustee encloses a true copy of the
                Trust
                Instrument of said Trust as amended to
                date.

            

    

    

    

     

    Name
      of
      Trust (Please type or print)

                                    

                                    By:
      ________________________________

    
      Name:
        ______________________________

      Title:
        _______________________________

    

    

    

    

    

    ACCEPTED
      BY THE COMPANY this the ______ day of _______________________,
      2004.

    

    

    KAHUNA
      NETWORK SECURITY, INC.

    

    

    

    By:______________________________________________

    L.
      Edward
      Parker, Chief Executive Officer

    

    
      
        
           

          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    
      
        Schedule
          B

        Registration
          Rights Agreement B-

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      B

    REGISTRATION
      RIGHTS AGREEMENT

    

    

    THIS
      REGISTRATION RIGHTS AGREEMENT
      (this
“Agreement”) is by and between Kahuna Network Security, Inc., a Nevada
      Corporation (“Company”) (formerly known as Computer Automation Systems, Inc.),
      and the party executing this document on page 5 (the “Holder”), dated as of the
      date set forth on page 5.

     

    W
      I T N E S S E T H:

    

    WHEREAS,
      the
      Holder has purchased the number of shares of Company common stock (“Common
      Stock”) set forth on page 5 of this Agreement (the “Common Stock”),
      and

    

    WHEREAS,
      the
      Company desires to grant to the Holder certain registration rights in respect
      of
      the resale of the Common Stock.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein, and
      other good and valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged, the parties hereto agree as follows:

    

    ARTICLE
      ONE

    Registration
      Rights Agreement

    

    SECTION
      1.1 Registration Rights Available. The Company agrees to provide Holder with
      respect to the resale of the Common Stock, and any other securities issued
      or
      issuable at any time or from time to time in respect of such securities upon
      a
      stock split, stock dividend, recapitalization or other similar event involving
      the Company (collectively, the “Securities”): (a) one demand secondary offering
      by means of registration pursuant to the Securities Act of 1933, as amended
      (“Securities Act”), subject to the provisions of this Agreement, and (b)
      unlimited rights to register the resale under the Securities Acton a “piggyback”
basis in resale of the Company securities, subject to the provisions of this
      Agreement. The demand registration right and piggyback registration rights
      are
      referred to herein as the “Registration Rights”).

    

    SECTION
      1.2 Demand Registration. With respect to Holder's right to one demand
      registration pursuant to Section 1.1 (a), the parties agree as
      follows:

    

    (a) Beginning
      on the earlier of (i) May 1, 2004, or (ii) 30 days following the closing of
      a
      private placement of equity or debt securities providing the Company with gross
      proceeds equal to $250,000 minimum, and up to a maximum of $500,000. Holder
      shall be entitled to exercise the demand registration right.

    

    (b) Holder
      shall provide written notice to the Company indicating his intention to exercise
      the demand registration right at any time prior to January 31, 2006. The Company
      shall promptly, and in any event within 90 days of receiving notice from the
      Holders, use its best efforts to file with the Securities and Exchange
      Commission (the “Commission”) and cause to become effective, a registration
      statement on appropriate form relating to the offer and sale of the Common
      Stock
      by Holder. The Company agrees to provide Holder with notice of the filing of
      such registration and of the filing of any amendments or supplements
      thereto.

    

      (c) The
      Company agrees to maintain such registration statement in effect for the maximum
      period allowable under the regulations promulgated by the Commission then in
      effect.

    

    (d) In
      any
      offering pursuant to this Section that becomes effective in which the Holder
      participates, the Company shall use its best efforts to keep available to the
      Holder a prospectus meeting the requirements of Section 10(a)(3) of the
      Securities Act and shall file all amendments and supplements under the
      Securities Act required for that purpose. In any offering pursuant to this
      Section the Company will, as soon as practicable, use its best efforts to effect
      such registration and use its best efforts to effect such qualification and
      compliance as may be so requested and as would permit or facilitate the
      distribution of such Securities, including, without limitation, registration
      under the Securities Act, appropriate qualifications under applicable blue-sky
      or other state securities laws, appropriate compliance with any other
      governmental requirements and listing on a national securities exchange on
      which
      the Common Stock is then listed or inter-dealer quotation system.

    

    SECTION
      1.3 Piggyback Registration. With respect to Holder’s right to piggyback on a
      firm commitment underwriting or a self-underwritten offering of the Company
      securities pursuant to Section 1.1, the parties agree as follows:

    

    (a) Pursuant
      to Section 1.1, the Company will (i) promptly give to the Holder notice of
      any
      registration relating to a public offering of the Company securities other
      a
      registration on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the stock option or other employee
      benefit plans; and (ii) include in such registration (and related qualification
      under blue sky laws or other compliance, unless such expense or terms of such
      qualification is unreasonable in comparison to the number of securities to
      be
      registered in such jurisdiction, as determined in the sole discretion of the
      Company), and in the underwriting involved therein, all the Securities of the
      Holder, with or without written request.

    

    (b) The
      right
      of Holder to registration pursuant to Section 1.1 shall be conditioned upon
      Holder’s participation in such underwriting, and the inclusion of the Securities
      in the underwriting shall be limited to the extent provided herein. The Holder
      and all other holders proposing to distribute their securities through such
      underwriting shall (together with the Company and the other holders distributing
      their securities through such underwriting) enter into an underwriting agreement
      in customary form with the managing underwriter selected for such underwriting
      by the Company. Notwithstanding any other provision of this Agreement, if the
      managing underwriter determines that marketing factors require a limitation
      of
      the number of shares to be underwritten, the managing underwriter may limit
      some
      or all of the Securities that may be included in the registration and
      underwriting as follows: the number of Securities that may be included in the
      registration and underwriting by the Holder shall be determined by multiplying
      the number of shares of Securities of all selling shareholders of the Company
      which the managing underwriter is willing to include in such registration and
      underwriting, times a fraction, the numerator of which is the number of
      Securities requested to be included in such registration and underwriting by
      the
      Holder, and the denominator of which is the total number of Securities which
      all
      selling shareholders of the Company have requested to have included in such
      registration and underwriting. To facilitate the allocation of shares in
      accordance with the above provisions, the Company may round the number of shares
      allocable to any such person to the nearest 100 shares. If the Holder
      disapproves of the terms of any such underwriting, it may elect to withdraw
      therefrom by written notice to the Company and the managing underwriter,
      delivered not less than seven days before the effective date. Any securities
      excluded or withdrawn from such underwriting shall be withdrawn from such
      registration, and shall not be transferred in a public distribution prior to
      120
      days after the effective date of the registration statement relating thereto,
      or
      such other shorter period of time as the underwriters may require.

    

    SECTION
      1.3 Registration Procedure. With respect to the Registration Right, the
      following provisions shall apply:

    

    (a) Holder
      shall be obligated to furnish to the Company such information regarding the
      Securities and the proposed manner of distribution of the Securities as the
      Company and the underwriters (if any) may request in writing and as shall be
      required in connection with any registration, qualification or compliance
      referred to herein and shall otherwise cooperate with the Company and the
      underwriters (if any) in connection with such registration, qualification or
      compliance.

    

    (b) With
      a
      view to making available the benefits of certain rules and regulations of the
      Commission which may at any time permit the sale of the Restricted Securities
      (used herein as defined in Rule 144 under the Securities Act) to the public
      without registration, the Company agrees to use its best lawful efforts
      to:

    

    (i) Make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act, at all times during which the Company is
      subject to the reporting requirements of the Securities Exchange Act of 1934,
      as
      amended (the “Exchange Act”);

    

    (ii) File
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Exchange Act (at all times during
      which the Company is subject to such reporting requirements); and

    

    (iii) So
      long
      as Holder owns any Restricted Securities, to furnish to Holder forthwith upon
      request a written statement by the Company as to its compliance with the
      reporting requirements of said Rule 144 and with regard to the Securities Act
      and the Exchange Act (at all times during which the Company is subject to such
      reporting requirements), a copy of the most recent annual or quarterly report
      of
      the Company, and such other reports and documents of the Company and other
      information in the possession of or reasonably obtainable by the Company as
      Holder may reasonably request in availing themselves of any rule or regulation
      of the Commission allowing Holder to sell any such securities without
      registration.

    

    (c) The
      Company agrees that it will furnish to Holder such number of prospectuses,
      offering circulars or other documents incident to any registration,
      qualification or compliance referred to herein as provided or, if not otherwise
      provided, as the Holder from time to time may reasonably request.

    

    (d) Except
      for the legal fees of Holder and any sales commissions that may be paid by
      Holder, all expenses of any registrations permitted pursuant to this Agreement
      and of all other offerings by the Company (including, but not limited to, the
      expenses of any qualifications under the blue-sky or other state securities
      laws
      and compliance with governmental requirements of preparing and filing any
      post-effective amendments required for the lawful distribution of the Securities
      to the public in connection with such registration, of supplying prospectuses,
      offering circulars or other documents) will be paid by the Company.

    

    (e) The
      Registration Right of this Agreement, subject to the terms and conditions
      hereof, shall be available to any subsequent holder of the Securities owned
      by
      Holder. Each subsequent holder entitled to the Registration Right under this
      Agreement shall be bound by the terms and subject to the obligations of this
      Agreement as though it were an original signatory hereto.

    

    ARTICLE
      TWO

    Indemnification

    

    SECTION
      2.1 Indemnification by the Company. In the event of any registration of the
      Securities of the Company under the Securities Act, the Company agrees to
      indemnify and hold harmless Holder and each other person who participates as
      an
      underwriter in the offering or sale of such securities against any and all
      claims, demands, losses, costs, expenses, obligations, liabilities, joint or
      several, damages, recoveries and deficiencies, including interest, penalties
      and
      attorneys’ fees (collectively, “Claims”), to which Holder may become subject
      under the Securities Act or otherwise, insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based on any untrue statement or alleged untrue statement of any material
      fact contained in any registration statement under which Holder’s Securities
      were registered under the Securities Act, any preliminary prospectus, final
      prospectus or summary prospectus contained therein, or any amendment or
      supplement thereto, or any omission or alleged omission to state therein a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and the Company will reimburse Holder and each such
      underwriter for any legal or any other expenses reasonably incurred by them
      in
      connection with investigating or defending any such Claim (or action or
      proceeding in respect thereof); provided that the Company shall not be liable
      in
      any such case to the extent that any such Claim (or action or proceeding in
      respect thereof) or expense arises out of or is based on an untrue statement
      or
      alleged untrue statement or omission or alleged omission made in such
      registration statement, any such preliminary prospectus, final prospectus,
      summary prospectus, amendment or supplement in reliance on and in conformity
      with written information furnished to the Company through an instrument duly
      executed by Holder specifically stating that it is for use in the preparation
      thereof. Such indemnity shall remain in full force and effect regardless of
      any
      investigation made by or on behalf of Holder or any such underwriter and shall
      survive the transfer of the Securities by Holder.

    

    SECTION
      2.2 Indemnification by Holder. The Company may require, as a condition to
      including the Securities in any registration statement filed pursuant to this
      Agreement, that the Company shall have received an undertaking satisfactory
      to
      it from Holder, to indemnify and hold harmless (in the same manner and to the
      same extent as set forth in Section 2.1) the Company, each director of the
      Company, each officer of the Company and each other person, if any, who controls
      the Company, within the meaning of the Securities Act, with respect to any
      statement or alleged statement in or omission or alleged omission from such
      registration statement, any preliminary prospectus contained therein, or any
      amendment or supplement thereto, if such statement or alleged statement or
      omission or alleged omission was made in reliance on and in conformity with
      written information furnished to the Company through an instrument duly executed
      by Holder specifically stating that it is for use in the preparation of such
      registration statement, preliminary prospectus, final prospectus, summary
      prospectus, amendment or supplement. Notwithstanding the foregoing, the maximum
      liability hereunder which any holder shall be required to suffer shall be
      limited to the net proceeds to such Holder from the Securities sold by such
      Holder in the offering. Such indemnity shall remain in full force and effect,
      regardless of any investigation made by or on behalf of the Company or any
      such
      director, officer or controlling person and shall survive the transfer of the
      Securities by Holder.

    

    SECTION
      2.3 Notices of Claims, etc. Promptly after receipt by an indemnified party
      of
      notice of the commencement of any action or proceeding involving a Claim
      referred to in this Article Two, such indemnified party will, if a claim in
      respect thereof is to be made against an indemnifying party, give written notice
      to the latter of the commencement of such action, provided that the failure
      of
      any indemnified party to give notice as provided herein shall not relieve the
      indemnifying party of its obligations under this Article Two, except to the
      extent that the indemnifying party is actually prejudiced by such failure to
      give notice. In case any such action is brought against an indemnifying party,
      unless in such indemnified party’s reasonable judgment a conflict of interest
      between such indemnified and indemnifying parties may exist in respect of such
      Claim, the indemnifying party shall be entitled to participate in and to assume
      the defense thereof, jointly with any other indemnifying party similarly
      notified to the extent that it may wish, with counsel reasonably satisfactory
      to
      such indemnified party, and after notice from the indemnifying party to such
      indemnified party of its election so to assume the defense thereof, the
      indemnifying party shall not be liable to such indemnified party for any legal
      or other expenses subsequently incurred by the latter in connection with the
      defense thereof other than reasonable costs of investigation. No indemnifying
      party shall, without the consent of the indemnified party, consent to entry
      of
      any judgment or enter into any settlement that does not include as an
      unconditional term thereof the giving by the claimant or plaintiff to such
      indemnified party of a release from all liability in respect of such
      Claim.

    

    SECTION
      2.4 Indemnification Payments. The indemnification required by this Article
      shall
      be made by periodic payments of the amount thereof during the course of the
      investigation or defense, as and when bills are received or expense, loss,
      damage or liability is incurred.

    

    ARTICLE
      THREE

    Miscellaneous

    

    SECTION
      3.1 Consent to Amendments. Except as otherwise expressly provided herein, the
      provisions of this Agreement may be amended or waived only by the written
      agreement of the Company and the Holder of 51% or more of the shares of Common
      Stock who received shares for services rendered and executed this and shall
      be
      effective only to the extent specifically set forth in such
      writing.

    

    SECTION
      3.2 Term of the Agreement. This Agreement shall terminate with respect to Holder
      on the earlier to occur of (i) the Securities having been registered as provided
      in Article One or (ii) February 1, 2006.

    

    SECTION
      3.3 Successors and Assigns. Except as otherwise expressly provided herein,
      all
      covenants and agreements contained in this Agreement by or on behalf of any
      of
      the parties hereto are transferable and will bind and inure to the benefit
      of
      the respective successors and assigns of the parties hereto, but only if so
      expressed in writing.

    SECTION
      3.4 Severability. Whenever possible, each provision of this Agreement will
      be
      interpreted in such a manner as to be effective and valid under applicable
      law,
      but if any provision of this Agreement is held to be prohibited by or invalid
      under applicable law, such provision will be ineffective only to the extent
      of
      such prohibition or invalidity, without invalidating the remainder of this
      Agreement.

    

    SECTION
      3.5 Delays or Omissions. No failure to exercise or delay in the exercise of
      any
      right, power or remedy accruing to Holder on any breach or default of the
      Company under this Agreement shall impair any such right, power or remedy nor
      shall it be construed to be a waiver of any such breach or default.

    

    SECTION
      3.6 Remedies Cumulative. All remedies under this Agreement, or by law or
      otherwise afforded to any party hereto shall be cumulative and not
      alterative.

    

    SECTION
      3.7 Descriptive Headings. The descriptive headings of this Agreement are
      inserted for convenience only and do not constitute a part of this Agreement.
      Unless clearly denoted otherwise, any reference to Articles or Sections
      contained herein shall be to the Articles or Sections of this
      Agreement.

    

    SECTION
      3.8 Notices. Any notices required or permitted to be sent hereunder shall be
      delivered personally or mailed, certified mail, return receipt requested, to
      the
      following addresses, and shall be deemed to have been received on the day of
      personal delivery or within three business days after deposit in the mail,
      postage prepaid:

    

    If
      to the
      Company, to:

    Edward
      Parker, Chief Executive Officer

    Kahuna
      Network Security, Inc. f/k/a Computer Automation Systems, Inc.

    6371
      Richmond Ave., Ste. 200

    Houston,
      Texas 77057

    

    If
      to
      Holder, to:

    [the
      address set forth on the signature page below]

     

    SECTION
      3.9 Governing Law. The validity, meaning and effect of this Agreement shall
      be
      determined in accordance with the laws of the State of Texas applicable to
      contracts made and to be performed in that state.

    

    SECTION
      3.10 Final Agreement. This Agreement, together with those documents expressly
      referred to herein, constitutes the final agreement of the parties concerning
      the matters referred to herein, and supersedes all prior agreements and
      understandings.

    

    SECTION
      3.11 Execution in Counterparts. This Agreement may be executed in any number
      of
      counterparts, each of which when so executed and delivered shall be deemed
      an
      original, and such counterparts together shall constitute one
      instrument.

    

    

    
      
        
           

          

        

         

      

      
         

        
          

        

      

      
         

        
          

        

      

    

    The
      parties hereto have executed this Agreement as of the date first set forth
      above.

     

    COMPANY:

    KAHUNA
      NETWORK SECURITY, INC.

    

    

    
      	
              /s/
                Ed Parker

            
	
              L.
                Edward Parker, Chief Executive Officer

            
	
              Dated:
                March 12, 2004

            

    

     

     

    HOLDER:

    

    
      	
              By:

            	 
	
              Name:

            	 
	
              Address:

            	 
	 	 
	
              Number
                of Shares Purchased:

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