Document:

Forbearance Agreenent dated December 31, 2004

 Exhibit 10.7 
  

			
	December 30, 2004	  	FORBEARANCE AGREEMENT

  
 This FORBEARANCE AGREEMENT
(“Forbearance Agreement”) is entered into as of December 30, 2004, and will serve to confirm certain agreements of Merrill Lynch Business Financial Services Inc. (“MLBFS”), DREAMS PRODUCTS, INC. (d/b/a Mounted
Memories) a Utah corporation (“Customer”), DREAMS INC. a Utah corporation (“Dreams”), and DREAMS FRANCHISE CORPORATION a California Corporation (“Dreams Franchise”) with respect to the following:

  

	(i)	that certain WCMA REDUCING REVOLVER LOAN AND SECURITY AGREEMENT NO. 760-07K52 dated as of November 17, 2003 between MLBFS and Customer, including any extensions or amendments
thereto (the “WCMA RR Agreement”); 

  

	(ii)	that certain WCMA LOAN AND SECURITY AGREEMENT NO. 760-07H76 dated as of December 20, 2000 between MLBFS and Customer, including any extensions or amendments thereto (the
“WCMA Loan Agreement”); 

  

	(iii)	that certain UNCONDITIONAL GUARANTY dated as of November 17, 2003 (amended and restated from December 20, 2000), and given by Dreams to MLBFS; 

  

	(iv)	that certain UNCONDITIONAL GUARANTY dated as of November 17, 2003 (amended and restated from December 20, 2000), and given by Dreams Franchise to MLBFS;

  

	(v)	that certain SECURITY AGREEMENT dated as of November 17, 2003 (amended and restated from December 20, 2000), and given by Dreams to MLBFS; and 

  

	(vi)	that certain SECURITY AGREEMENT dated as of November 17, 2003 (amended and restated from December 20, 2000), and given by Dreams Franchise to MLBFS. 

 
 For purposes of this letter, (i) the WCMA Loan Agreement, the WCMA RR Agreement, along
with each of the other documents listed above will collectively be referred to as the “Loan Documents”, and (ii) Customer, Dreams, and Dreams Franchise will collectively be referred to herein as “Obligors”. MLBFS and Obligors are
hereafter referred to as “Parties”. The Parties acknowledge that the Loan Documents reflect all of the Obligations owed by the Obligors to MLBFS. Capitalized terms used herein and not defined herein shall have the meaning set forth in the
Loan Documents. 
  
 RECITALS 
  

	 	1.	The WCMA Loan Agreement expired by it terms on November 30, 2004, and MLBFS has advised the Obligors that it has elected not to renew the line of credit and the obligation of MLBFS
under the WCMA Loan Agreement; 

  

	 	2.	As a result of the maturity of the Obligations under the WCMA Loan Agreement, and the failure of the Customer to make full payment to MLBFS upon the maturity of the loans, MLBFS is
entitled to exercise its rights and remedies under the Loan Documents and applicable law; 

  

	 	3.	Obligors and MLBFS have engaged in discussions relating to the circumstances under which MLBFS will forbear from exercising its rights and remedies under the Loan Documents, defer
the full and immediate collection of the Obligations, and permit the Obligors to repay the Obligations over the next several months, provided no Default Event (as hereinafter defined) shall occur under this Forbearance Agreement and all Obligations
are paid in full in accordance with the terms of This Forbearance Agreement; 

  

	 	4.	Although MLBFS is under no obligation to do so, MLBFS has agreed (i) to forbear from exercising its rights and remedies under the Loan Documents, (ii) to defer the full and
immediate collection of the Obligations, and (iii) to permit Obligors to repay the outstanding Obligations over a period of time, in each case, as set forth in this Forbearance Agreement, subject to Obligors’ compliance with all of the terms
set forth in this Forbearance Agreement. 

  

 Now therefore, in consideration of the premises and of the mutual covenants and agreements contained herein, the receipt
and sufficiency of which are hereby acknowledged by the Parties, the Parties hereby agree as follows: 
  
 1. Recitals. The Recitals are true, accurate and complete, are not misleading in any material respect, constitute a material part of this Forbearance Agreement, and are incorporated by reference as if fully set
forth herein. 
  
 2. Acknowledgment of Defaults and Events of Default.
Obligors acknowledge and agree: (i) that the loans made by MLBFS to the Obligors pursuant to the Loan Documents have matured and have become fully due and payable in accordance with their terms and the Obligors have not, as of the date hereof,
repaid the Obligations; (ii) that Obligors, as a result of the maturity of the loans, have no further right to borrow any additional funds under the Loan Documents in any capacity; and (iii) that MLBFS has not waived any of the rights and remedies
available to MLBFS with respect to the repayment of the Obligations, in any respect, except as expressly set forth in this Forbearance Agreement. 
  
 3. Exercise of Remedies. Obligors acknowledge that since all of the loans made pursuant to the Loan Documents have matured and become fully due and payable, except
as expressly set forth in this Forbearance Agreement, (i) MLBFS has had and continues to have the right to exercise any remedies it may have under the Loan Documents, including, without limitation, the right to require the full and immediate
repayment of the principal of and interest on the WCMA Loan Balance and all Obligations and all other amounts outstanding under the Loan Documents; and (ii) MLBFS’ exercise of any remedies under the Loan Documents and/or applicable law would be
adequate and proper in all respects. 
  
 4. Modifications to the Loan
Documents: As a material inducement for MLBFS to forbear from exercising its rights and remedies under the Loan Documents and applicable law, and to defer the full and immediate collection of the Obligations, subject to the terms hereof,
effective as of the “Effective Date” (as defined below), the Loan Documents are hereby amended as follows: 
  

	 	(a)	The term “Interest Rate” shall mean a variable per annum rate of interest equal to the sum of 4.00% and the One-Month LIBOR. “One-Month LIBOR” shall mean, as of
the date of any determination, the interest rate then most recently published in the “Money Rates” section of The Wall Street Journal as the one-month London Interbank Offered Rate. The Interest Rate will change as of the date of
publication in The Wall Street Journal of a One-Month LIBOR that is different from that published on the preceding Business Day. In the event that The Wall Street Journal shall, for any reason, fail or cease to publish the One-Month
LIBOR, MLBFS will choose a reasonably comparable index or source to use as the basis for the Interest Rate. 

  

	 	(b)	A/R Aging and Inventory Report. In addition to existing requirements, Customer and all Obligors shall provide or cause to be provided to MLBFS within 15 days after the close
of each fiscal month of Customer, a copy of (a) the Accounts Receivable Aging and (b) the Inventory Report (as and to the extent applicable, breaking out Inventory by location, and separately reporting any work in process) of Customer and each other
Obligor as of the end of such fiscal month. All financial information required to be furnished by Customer or any other Obligor to MLBFS hereunder will be certified as correct in all material respects by the party who has prepared such information,
and, in the case of internally prepared information with respect to Customer of any other Obligor, certified as correct by the respective chief executive officer or chief financial officer of Customer or such other Obligor, as applicable (at the
option of the Customer or Obligor, as applicable). 

  

	 	(c)	In addition to the existing representations and warranties, Customer and each of the Obligors further covenant and agree, that at all times hereafter, that:

  
 i. Collateral Value. As of the
date hereof, and at all times thereafter, the aggregate of the Approved Cash or Cash Equivalent (as hereinafter defined, the book value of Customer’s Inventory (i.e. cost less depreciation) and Accounts Receivable (excluding Accounts over 90
days old, Chattel Paper with installments or other sums more than 90 days past due, Accounts and Chattel Paper directly or indirectly due from any shareholder, officer or employee of Customer or any affiliated entity, Accounts due from any
governmental authority or body and 

  

 
Accounts and Chattel Paper due from persons or entities not domiciled in the United States) (the “Qualified Accounts Receivable”) shall not be less
than the lesser of (1) $9,000,000 or (2) the greater of (a) the sum of the aggregate of the Approved Cash or Cash Equivalents, the book value of Customer’s Inventory and Qualified Accounts Receivable of the Customer and other Obligors as of
December 31, 2004 (based in the case of Customer’s Inventory on the actual physical inventory regularly conducted by Customer and the other Obligors as of such date), or (b) $9,000,000. For purposes hereof, the term “Approved Cash or Cash
Equivalent shall mean that amount of the cash or cash equivalent or other assets acceptable to MLBFS in its sole and absolute discretion that has been pledged, conveyed and assigned to MLBFS by Customer or another Obligor, granting MLBFS a first
lien and security interest upon such cash and cash equivalents and other acceptable assets pursuant to such security agreements as MLBFS may hereinafter accept in its sole and absolute discretion. 
  
 ii. Subordinated Debt. The aggregate outstanding indebtedness of the
Customer and the other Obligors subordinated to the Obligations shall not be less than $1,000,000.00, unless and until one of the following shall have occurred: (1) all Obligations shall have been repaid in full, (2) the Customer shall have
consummated or shall have contemporaneously therewith consummated a Rights Offering (as described below) or other sale of equity securities of the Customer or any other Obligor resulting in net proceeds to the Customer of at least $2,000,000 (of
which $1,000,000 may be used to repay any such subordinated indebtedness, provided following such consummation of such Rights Offering or other offering of equity securities, Customer or any other Obligor has an equity infusement of $1,000,000.00
more than that existing immediately prior to the consummation of such Rights Offering or other offering of equity securities) or (3) the aggregate outstanding indebtedness of Customer to any other obligor or any third party, which shall be
subordinated to the Obligations in form and substance acceptable to MLBFS in its sole and absolute discretion, is in an amount not less than $1,000,000.00. The Parties acknowledge that any outstanding indebtedness for money borrowed by the Customer
or by any of the other Obligors for the benefit of the Customer, which is hereinafter incurred, shall be made in accordance with the express terms of a written subordination agreement prepared or approved in writing by MLBFS and executed by the
applicable subordinated creditor. The Parties further acknowledge that notwithstanding anything to the contrary contained in this Forbearance Agreement or in any such subordination agreement, all or any portion of the subordinated debt, described
above, may at the option of the Customer or other Obligor be converted into equity of the Customer in connection with the Rights Offering or other sale of equity securities at such a conversion ratio as the Customer and its Board of Directors shall
deem appropriate and the amount of such subordinated debt shall be included as net proceeds received by Customer in connection with the Rights Offering or other sale of equity securities for purposes of determining if the $2,000,000 threshold
described above has been met. 
  
 iii. Salaries and
Distributions. Unless and until all Obligations have been indefeasible paid to MLBFS: (i) no Obligor shall directly or indirectly make any loans or distributions to or guaranty any of the debt of any of its respective shareholders; and (ii) the
salaries, bonuses and other compensation directly or indirectly paid by Customer or any Obligor to Sam Battistone or Ross Tannebaum or both of them, heretofore deferred and/or hereinafter deferred, shall not be paid; provided, however, that
notwithstanding the foregoing, the Customer shall have the right to pay to Ross Tannenbaum an amount equal to $1,000 per month to enable him to continue to qualify as an employee entitled to participate in the insurance plans and policies of the
Customer and other Obligors in which he participates as of the date hereof or any other insurance plans and policies in which the executives of the Obligors may participate from time to time. 
  

	 	(d)	As to the WCMA RR Agreement the following terms shall have the following meanings: 

  

	 	i.	The term “Termination Date” shall mean the first to occur of: (i) the last Business Day of the seventeenth (17th) full calendar month following the Closing Date, or (ii) April 29, 2005, or (iii) if earlier, the date of termination of the WCMA Line of Credit pursuant to
the terms of this Forbearance Agreement. 

  

	 	ii.	Section 3.6 of the WCMA RR Agreement is hereby amended and restated to read as follows: 

  
 1. Periodic Reduction of Maximum WCMA Line of Credit. Commencing on the last Business Day of the first full calendar
month following the Closing Date, and continuing on the last Business Day of each calendar month thereafter to and including the last Business Day of the sixteenth (16th) such calendar month, the Maximum WCMA Line of Credit shall be reduced by an amount equal to the amount set forth below opposite the number of such month
following the Closing Date as follows: 
  

			
	Months	  	 Monthly Reduction
 (Percentage of Loan Amount)

	 1-12
	  	$10,000.00
	 13-16
	  	$20,000.00

  
 Unless the WCMA Line
of Credit shall have been earlier terminated pursuant to the terms of this Forbearance Agreement, on the last Business Day of the seventeenth (17th) calendar month following the Closing Date, the WCMA Line of Credit shall, without further action of either of the parties hereto, be terminated, Customer shall pay to MLBFS the entire WCMA Loan
Balance, if any, and all other Obligations, and the WCMA Account, at the option of Customer, will either be converted to a WCMA Cash Account (subject to any requirements of MLPF&S) or terminated. No failure or delay on the part of MLBFS in
entering into the WCMA computer system any scheduled reduction in the Maximum WCMA Line of Credit pursuant to this Section shall have the effect of preventing or delaying such reduction. 
  

	 	(e)	As to the WCMA Loan Agreement the following terms shall have the following meanings: 

  

	 	i.	The term “Maximum WCMA Line of Credit” shall mean, (i) as of the Effective Date (as hereinafter defined) through and including the calendar day immediately preceding the
“Change Date” (as hereinafter defined), $4,500,000.00 and (iii) effective the Change Date through April 29, 2005, $3,500,000.00. For purposes hereof, the term “Change Date” shall mean the earlier to occur of (a) the date of the
closing of any transaction involving the sale of $2,200,000.00, or any other sum, in equity by the Customer or any Obligor through a “rights offering” or any other equity offering consummated by Customer or any Obligor (the “Rights
Offering”), or (b) March 31, 2005. CUSTOMER AGREES THAT IT WILL, WITHOUT DEMAND, INVOICING OR THE REQUEST OF MLBFS, FROM TIME TO TIME MAKE SUFFICIENT PAYMENTS ON ACCOUNT OF THE WCMA LOAN BALANCE TO ASSURE THAT THE WCMA LOAN BALANCE WILL NOT
AT ANY TIME EXCEED THE MAXIMUM WCMA LINE OF CREDIT, AS REDUCED EACH MONTH PURSUANT TO THIS SECTION IN THE AMOUNTS SPECIFIED IN THIS SECTION. 

  

5. Loan Documents. Obligors acknowledge and agree as of the date hereof (i) that the Loan Documents are legal, valid and binding obligations of Obligors and are
enforceable in accordance with their terms by MLBFS, and (ii) that Obligors have no defenses, counterclaims or rights of set-off which would affect MLBFS’ ability to enforce the Loan Documents. If Obligors have any such defenses, counterclaims
or rights of setoff as of the date hereof, Obligors, through their execution of this Forbearance Agreement, hereby waive such defenses, counterclaims or rights of setoff. Except as expressly amended hereby, the Loan Documents shall continue in full
force and effect upon all of their terms and conditions. By their execution of this Forbearance Agreement, the Obligors hereby consent to the foregoing modifications to the Loan Documents, and hereby agree that the “Obligations” under

  

 
their respective Unconditional Guaranty, and/or agreements providing collateral shall extend to and include the Obligations of Customer under the Loan
Documents, as amended hereby. 
  
 6. Representations of Obligors. In
addition to any representations set forth in the Loan Documents, all of which are hereby ratified and confirmed in all respects as of the date hereof, Obligors represent: (i) that Customer is validly existing and in good standing under the laws of
the state of Utah and in any other state where it conducts its business; (ii) that Customer’s principal place of business and the locations of the Collateral are currently set forth on Schedule A attached hereto; (iii) that MLBFS has a validly
perfected and enforceable first lien on and security interest in the Collateral; (iv) that none of the Collateral is subject to any lien, encumbrance or security interest other than the liens and security interests of MLBFS; (v) except as set
forth on Schedule B attached hereto and made a part hereof, that no litigation, arbitration, administrative or governmental proceedings are pending or, to the knowledge of Obligors, are threatened against Obligors, which would, if adversely
determined, materially and adversely affect the liens and security interests of MLBFS hereunder or under any of the Loan Documents, the financial condition of any Obligor or the continued operations of any Obligor. 
  
 7. Forbearance Fee. Obligors agree, concurrent with their execution of this
Forbearance Agreement, to pay MLBFS a non-refundable Forbearance Fee of $7,500.00 covering the period between the Effective Date and April 29, 2005 (the “Forbearance Period”). Customer agrees to pay the Forbearance Fee with a check drawn
on a non-Merrill Lynch checking account, and agrees that the Forbearance Fee will be fully non-refundable once it has been paid. Obligors further agree that additional forbearance fees will become due and owing to MLBFS for any extensions to this
Forbearance Agreement granted by MLBFS. 
  
 8. Default Interest Rate
Provision. Obligors hereby agree that upon the occurrence of a Default Event under this Forbearance Agreement, or any event which with the giving of notice, passage of time, or both, would constitute an Default Event under this Forbearance
Agreement (a “Default”), but without limiting any rights or remedies otherwise available to MLBFS or waiving such Default, the interest payable by Customer under the Loan Documents shall at the option of MLBFS be payable at a rate equal to
the sum of the Interest Rate (as defined in the Loan Documents) plus 2.0% per annum (the “Default Interest Rate”). The Default Interest Rate, once implemented, shall continue to be payable by Customer and apply to the Obligations of
Customer under the Loan Documents for so long as MLBFS shall elect to have such rate apply to the Obligations. 
  
 9. Obligations of MLBFS. Provide that no Default Event has occurred during the time from of the date hereof through and including April 29, 2005, then MLBFS will forbear from exercising its legal rights and
remedies as a secured creditor under the Loan Documents, including without limitation, the WCMA Loan Agreement and the related Unconditional Guaranties and Security Agreements, or under common or statutory law until April 29, 2005. Additionally,
upon mutual consent of MLBFS and Obligors, in the sole and absolute discretion of either or both Parties, this Agreement may be renewed for an additional period beyond the Forbearance Period. 
  
 10. Release of MLBFS. With the exception of MLBFS’ duties and obligations under
this Forbearance Agreement and the duties and obligations under the Loan Documents which continue in effect pursuant to and following the execution of this Forbearance Agreement, Obligor(s), for itself and by its respective employees, agents,
servants and representatives, completely release and forever discharge MLBFS and its parents, affiliates, subsidiaries, and divisions, and each such entity’s officers, directors, shareholders, employees, owners, partners, agents, successors,
and assigns, of and from any and all causes of action, claims, or demands whatsoever, in law or in equity, whether now known or hereafter discovered, including but not limited to those that in any way pertain to the Loan Documents or arise from the
conduct of MLBFS, its parents, affiliates, subsidiaries, and divisions. 
  
 11.
No Insolvency. Obligors hereby represent and warrant that as of the date hereof, they: (i) are not Insolvent (as defined below), and will not be rendered Insolvent as a result of executing and performing under this Forbearance Agreement, or
any other document or agreement executed and/or delivered to MLBFS in connection with this Forbearance Agreement, and (ii) will not be left with remaining property that constitutes unreasonably small capital or property the value of which was
unreasonably small in relation to their businesses. For purposes of this Forbearance Agreement, the word “Insolvent” means that the present fair saleable value (i.e. the amount that would be arrived at by a willing seller and a willing
buyer under no compulsion to make a sale) of Obligors’ assets is less than the amount that will be required to pay the probable liability on existing debts (including, without limitation, any legal liability, whether matured or unmatured,
liquidated or unliquidated, absolute, fixed or contingent) as they become absolute and matured. 
  

 12. Default Event. The occurrence of any of the following events shall constitute a “Default Event”
under this Forbearance Agreement: (i) MLBFS does not receive any of the payments set forth in this Forbearance Agreement by the applicable due dates; (ii) Obligors default in the performance or observance of any covenant or provision to be performed
or observed under this Forbearance Agreement, any other agreement entered into by the Parties following the date hereof pursuant to this Forbearance Agreement; (iii) any representation or warranty made by Obligors contained in this Forbearance
Agreement, or any other agreement entered into by the Parties pursuant to this Forbearance Agreement following the date hereof, or any of the Loan Documents shall at any time following the date hereof prove to have been incorrect in any material
respect when made; (iv) a proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt or receivership law or statute shall be filed or consented to by any or all of the Obligors, or any such proceeding shall be
filed against any or all of the Obligors, or any or all of the Obligors shall make a general assignment for the benefit of creditors, or any or all of the Obligors shall generally fail to pay or admit in writing their inability to pay their debts as
they become due, or any or all of the Obligors shall be adjudicated as bankrupt or insolvent. For purposes hereof, the Parties acknowledge that any and all rights to cure and/or notices required under the Loan Documents shall not be effected by the
provisions hereof, and to the extent such rights for cure or notice is required, such rights and requirements shall continue hereunder. The parties acknowledge that (1) Customer and the other Obligors may presently be in default under the Loan
Documents and such defaults may give rise to one or more Events of Default under the Loan Documents, (2) Customer and the other Obligors may be in default under the Loan Documents and such defaults may give rise to one or more Events of Default
under the Loan Documents between the Effective Date and April 29, 2005, and (3) no such defaults or Events of Defaults described in (1) or (2) which arise from non-compliance with any financial covenants contained in any of the Loan Documents or
those set forth on Schedule C shall constitute a Default Event hereunder unless the facts and circumstances giving rise to such defaults or Events of Default shall, notwithstanding the Loan Documents, otherwise independently give rise to a Default
Event hereunder. 
  
 13. Remedies. Upon the occurrence of a Default Event,
in addition to the remedies available to MLBFS under the Loan Documents, MLBFS shall have all rights hereunder and under law and equity, including but not limited to the following rights: 
  
 (i) MLBFS may obtain a replevin order by consent in a replevin action in favor of MLBFS and against Customer or any other Obligor, jointly
and severally, with respect to all Collateral. This replevin may be filed in Illinois, Georgia, or such other jurisdiction as permitted by law. Obligors agree to not contest the entry of a consent replevin order should it be pursued by MLBFS.

  
 (ii) MLBFS may demand and obtain from the Obligors any and all Collateral
without the need for judicial process. MLBFS may, at any time, take possession of any portion or all of the Collateral and keep it on the premises of Customer or any Obligor, at no cost to MLBFS, or remove any part of it to such other location or
place as MLBFS may desire; or Customer or any Obligor shall, upon demand of MLBFS, at the sole cost of Customer or such Obligor, assemble the Collateral and make it available to MLBFS at a place reasonably convenient to MLBFS. 
  
 (iii) MLBFS may file a lawsuit against either or both of the Obligors for the sole purpose of
having a trial court enter judgment in favor of MLBFS against Obligors for all amounts owed by them. Obligors agree to not contest the entry of said judgment. 
  

(iv) MLBFS shall have any and all default rights and remedies of a secured party under the Uniform Commercial Code. 
  
 (v) Obligors hereby consent to the appointment of a receiver by MLBFS or any court of
competent jurisdiction in any action initiated by MLBFS pursuant to this Forbearance Agreement or the Loan Documents, and each Obligor hereby waives notice and posting of a bond in connection therewith. Such receiver so appointed may be MLBFS. Such
appointment shall be without regard to the value of the Collateral at the time the receivership is sought, and without the applicant being required to post a bond. The receivership may be appointed without notice and without regard to the solvency
or insolvency of the person or persons, if any, liable for the repayment of the Obligations. 
  
 (vi) MLBFS may sell and deliver any Collateral at public or private sales, for cash, upon credit or otherwise, at such prices and upon such terms as MLBFS deems advisable, at MLBFS’ discretion. MLBFS may, if
MLBFS deems it reasonable, postpone or adjourn any sale of the Collateral by an announcement at the time and place of sale or of such postponed or adjourned sale without giving a new notice of sale. 
  

 (vii) Obligors agree that MLBFS has no obligation to preserve rights to the Collateral or marshal any assets, including
the Collateral, for the benefit of any person. 
  
 (viii) Where applicable, MLBFS
is hereby granted a license or other right to use, without charge, Obligors’ labels, patents, copyrights, name, trade secrets, trade names, trademarks, and advertising matter, or any similar property, in completing production, advertising or
selling any Collateral and Obligor’s rights under all licenses and all franchise agreements shall inure to MLBFS’s benefit. Any requirement of reasonable notice shall be met if such notice is mailed postage prepaid to Customer at its
address set forth above in this Forbearance Agreement at least five (5) business days before sale or other disposition. The proceeds of any sale shall be applied first to all attorney fees and other expenses of sale, and second on account of the
Obligations in such order as MLBFS shall elect, in its sole discretion. MLBFS shall return any excess proceeds to Obligors. However, all Obligors shall remain jointly and severally liable for any deficiency to the fullest extent permitted by law.

  
 (ix) Except as otherwise provided herein, MLBFS shall have the continuing and
exclusive right to apply or reverse and reapply any and all payments to any portion of the Obligations in such order and in such manner as MLBFS, in its sole discretion, shall determine. If Obligors make a payment, or if MLBFS receives any payment
or proceeds of the Collateral which is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor-in-possession, receiver or any other party under any bankruptcy law, common law or
equitable cause, or otherwise, then the Obligations or the portion of the Obligations that was intended to be satisfied by such payment shall be revived and continue as if such payment or proceeds had not been received by MLBFS. 
  
 (x) Obligors shall perform without objection any other act required or requested by MLBFS in
accordance with the terms of this Forbearance Agreement under any right or remedy given to it pursuant to the Loan Documents or under the law. 
  
 14. Sales of Assets. Without the prior written consent of MLBFS, Obligors shall not sell, transfer or otherwise dispose of any of their assets or Collateral other
than in the ordinary course of dealing. 
  
 15. Execution of Documents.
Obligors agree to execute all documents necessary to effectuate the terms and conditions of this Forbearance Agreement. 
  
 16. Insurance. Obligors agree that the Obligors shall maintain insurance on all Collateral under a policy or policies of physical damage insurance for the full
replacement value thereof, providing that losses will be payable to MLBFS as its interests appear pursuant to the lender’s or mortgagee’s long form loss payable endorsement. Obligors shall further maintain a policy or policies of
commercial general liability. Obligors further agree that MLBFS may at its sole and absolute discretion, obtain, and maintain insurance on the Collateral under a policy or policies of physical damage insurance for the full replacement value thereof
and providing that losses will be payable to MLBFS. Obligors agree to execute any and all documents necessary in order for MLBFS to obtain and maintain insurance on the Collateral. 
  
 17. Course of Dealing. No course of dealing on the part of Obligors or any delay or failure on the part of MLBFS to exercise any
right shall operate as a waiver of such rights or otherwise prejudice MLBFS’ rights, powers or remedies. 
  
 18. No Further Advance. Obligors acknowledge and agree, except as expressly provided for in this Forbearance Agreement, that MLBFS has no obligation to advance, provide or loan any further or additional monies
or credit to Customer, and that MLBFS has no obligation to grant any further forbearance to Obligors or to further extend the time for the repayment of the Obligations except as and to the extent set forth in this Forbearance Agreement. 

 
 19. Mutual Consent. The Parties each acknowledge that this Forbearance Agreement
has been negotiated at arms length, that each has had the opportunity to consult with legal counsel of their choosing, if so desired, about the consequences and effect of entering into this Forbearance Agreement, and that the Parties have entered
into this Forbearance Agreement of their own free will, without force, coercion or duress. 
  

 20. Fax Signature. This Forbearance Agreement may be signed by fax copy with any duplicate original to follow,
which original shall have the same force as one document with original signatures. Thereafter, the Parties may sign original confirmation agreements. 
  
 21. Governing Law. This Forbearance Agreement shall be governed in all respects by the laws of the State of Illinois. 
  
 22. Binding Agreement. This Forbearance Agreement shall be binding upon, and shall
inure to the benefit of MLBFS, the Obligors and their respective successors and assigns. Obligors shall not assign any of their rights or delegate any of their obligations under this Forbearance Agreement without the prior written consent of MLBFS.
Unless otherwise expressly agreed to in a writing signed by MLBFS, no such consent shall in any event relieve Obligors of any of their obligations under this Forbearance Agreement. 
  
 23. No Release of Security. Nothing contained herein shall annul, release, vary, modify or affect the liens or the priority of the
liens securing the Obligations, as the case may be, any guaranty, lien, priority assignment or security interest in favor of MLBFS, or any right, title, interest, claim, lien or priority which MLBFS now has or may hereafter have in or to any
property securing the Obligations, all of which shall continue in full force and effect. MLBFS specifically reserves and shall have all rights and remedies available to it under the provisions of the Loan Documents and in any agreement with respect
to security for the repayment thereof. 
  
 24. Not a Novation. This
Forbearance Agreement is not a novation or a creation of any new indebtedness, and is not to be construed as a release or modification of any of the terms, conditions, warranties, waivers or rights set forth in the Loan Documents, except as
expressly provided herein. 
  
 25. Headings. Section headings used in this
Forbearance Agreement are for convenience only and shall not affect the construction of this Forbearance Agreement. 
  
 26. Neutral Interpretation. This Forbearance Agreement constitutes the product of negotiation of the Parties hereto and in the enforcement hereof shall be
interpreted in a neutral manner, and not more strongly for or against any party based upon the source of the draftsmanship hereof. Whenever the context so requires, the masculine gender shall include the feminine or neuter, the singular shall
include the plural, and vice versa. 
  
 27. Review by Legal Counsel.
Obligors acknowledge that they have thoroughly read and reviewed the terms and provisions of this Forbearance Agreement, are familiar with all of the terms, and clearly understand and fully and unconditionally consent to each of them. Obligors have
had the full benefit and advice of legal counsel of their own choosing, or the opportunity to obtain the benefit and advice of legal counsel of their own choosing, in order to understand the terms, meanings and effect of entering into this
Forbearance Agreement. Obligors represent and warrant that their execution of this Forbearance Agreement and the delivery of the documents is done freely and voluntarily, with full knowledge and without duress, force or coercion, and that Obligors
have relied on no other representations, whether written, oral, express or implied, made to them by MLBFS or any party as the reason they executed this Forbearance Agreement. 
  
 28. Counterparts. This Forbearance Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed an original document, and all of which counterparts, when taken together, shall constitute one and the same agreement. 
  
 29. Authority to Execute. The Parties to this Forbearance Agreement, and each of their representatives, represent and warrant to the other Parties that they have
the full power and authority to execute this Forbearance Agreement in the capacity in which they are signing, that they have the full power and authority to execute and deliver this Forbearance Agreement without the necessity or joinder of any other
third party, that each of the Parties and its undersigned representative is legally competent to execute this Forbearance Agreement, and that each of the Parties has not assigned, transferred, sold, pledged or in any other manner whatsoever conveyed
any right, title, interest or claim of any portion of the Loan Documents to any other party. 
  
 30. Severability. In the event that any provision of this Forbearance Agreement is held to be unenforceable or invalid, the remaining provisions hereof shall nevertheless be given full force and effect.

  

 31. Jurisdiction; Waiver. THE OBLIGORS ACKNOWLEDGE THAT THIS FORBEARANCE AGREEMENT IS BEING ACCEPTED BY MLBFS IN
PARTIAL CONSIDERATION OF MLBFS’ RIGHT AND OPTION, IN ITS SOLE DISCRETION, TO ENFORCE THIS FORBEARANCE AGREEMENT AND THE LOAN DOCUMENTS IN EITHER THE STATE OF ILLINOIS OR IN ANY OTHER JURISDICTION WHERE THE OBLIGORS OR ANY COLLATERAL FOR THE
OBLIGATIONS MAY BE LOCATED. THE OBLIGORS CONSENT TO JURISDICTION IN THE STATE OF ILLINOIS AND VENUE IN ANY STATE OR FEDERAL COURT IN COOK COUNTY FOR SUCH PURPOSES, AND THE OBLIGORS WAIVE ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE. THE
OBLIGORS FURTHER WAIVE ANY RIGHTS TO COMMENCE ANY ACTION AGAINST MLBFS IN ANY JURISDICTION EXCEPT IN COOK COUNTY AND THE STATE OF ILLINOIS. MLBFS AND THE OBLIGORS HEREBY EACH EXPRESSLY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES AGAINST THE OTHER PARTY WITH RESPECT TO ANY MATTER RELATING TO, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE OBLIGATIONS, THIS FORBEARANCE AGREEMENT, ANY ADDITIONAL AGREEMENTS RELATED
HERETO, THE LOAN DOCUMENTS AND/OR ANY OF THE TRANSACTIONS WHICH ARE THE SUBJECT MATTER OF THIS FORBEARANCE AGREEMENT, ANY ADDITIONAL AGREEMENTS RELATED HERETO, OR THE LOAN DOCUMENTS. 
  
 32. Integration. THIS FORBEARANCE AGREEMENT, TOGETHER WITH THE LOAN DOCUMENTS AND ANY ADDITIONAL AGREEMENTS RELATED HERETO, CONSTITUTES
THE ENTIRE UNDERSTANDING AND REPRESENTS THE FULL AND FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR WRITTEN AGREEMENTS OR PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. NO AMENDMENT OR MODIFICATION OF THIS FORBEARANCE AGREEMENT OR ANY OF THE ADDITIONAL AGREEMENTS TO WHICH ANY OF THE OBLIGORS ARE A PARTY SHALL BE EFFECTIVE UNLESS IN A
WRITING SIGNED BY MLBFS AND EACH OBLIGOR. 
  
 33. Return of Executed
Documents. If no further Event of Default, or event which with the giving of notice, passage of time, or both, would constitute an Event of Default, shall then have occurred and be continuing under the terms of the Loan Documents, then the
amendments and agreements in this Forbearance Agreement will become effective on the date (the “Effective Date”) upon which: (i) Obligors shall have executed and returned the original or facsimile copy of this Forbearance Agreement to
MLBFS (provide, however, that if delivery of this Forbearance Agreement is made by facsimile delivery, Obligors shall send or cause to be sent the original thereof via overnight mail to MLBFS), along with the Subordination Agreement; and (ii) an
officer of MLBFS shall have executed and returned the original or facsimile copy of this Forbearance Agreement, but in no event shall the Effective Date be later than December 31, 2004. If Obligors do not return to MLBFS (a) the fully executed
original copy of this Forbearance Agreement and all attachments or enclosures hereof, including but not limited to the Subordination Agreement; (b) a check for $7,500.00 to satisfy the Forbearance Fee requirement; and (c) any other documents
reasonably required by MLBFS in its sole discretion, to effectuate the terms of this Forbearance Agreement all by December 30, 2004, (collectively, items (a), (b) and (c) are referred to as “Obligors’ Conditions”), or if for any other
reason (other than the sole fault of MLBFS) the Effective Date shall not occur by December 31, 2004, then this Forbearance Agreement and all of the terms contained herein may, at the sole option of MLBFS, be declared to be null and void and be of no
force and effect. 
  

 IN WITNESS WHEREOF, the Parties have signed and delivered this Forbearance Agreement, on or about the date stated
above. 
  
 MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC. 
  

			
		
	By:	 	/S/    MICHAEL KOZAK        
	 Printed Name:
	 	Michael Kozak
	 Title:
	 	Vice President
	
	OBLIGORS:
	
	DREAMS PRODUCTS, INC.
		
	By:	 	/S/    ROSS TANNENBAUM        
	 Printed Name:
	 	Ross Tannenbaum
	 Its:
	 	President
	
	DREAMS INC.
		
	By:	 	/S/    ROSS TANNENBAUM        
	 Printed Name:
	 	Ross Tannenbaum
	 Its:
	 	President/CEO
	
	DREAMS FRANCHISE CORPORATION
		
	By:	 	/S/    ROSS TANNENBAUM        
	 Printed Name:
	 	Ross Tannenbaum
	 Its:
	 	PresidentEmployment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
  

This Employment Agreement (“Agreement”) is made and entered into on this 27th day of January, 2005 effective as of February 1, 2005, by and
between DEVCON INTERNATIONAL CORP., a Florida corporation (the “Company”), and RON G. LAKEY (hereinafter called the “Executive”). 
  
 RECITALS 
  
 A. The Company desires to employ the Executive and the Executive desires to be employed by the Company in accordance with the terms and conditions of this
Agreement. 
  
 B. The Board of Directors or the Compensation
Committee of the Company (the “Compensation Committee”) has approved the execution by the Company of this Agreement. 
  
 C. The Board, CEO and President have determined that this Agreement will reinforce and assure the Executive’s continued employment with the Company
and encourage the Executive’s continued attention and dedication to the Company. 
  
 AGREEMENT 
  
 NOW,
THEREFORE, in consideration of the premises and mutual covenants set forth herein, the parties agree as follows: 
  
 1. Employment. 
  
 1.1 Employment and Term. The Company hereby agrees to employ the Executive and the Executive hereby agrees to serve the Company and its
subsidiaries (the “Subsidiaries”) on the terms and conditions set forth herein. 
  
 1.2 Duties of Executive. During the Term of Employment under this Agreement, the Executive shall serve as Chief Financial Officer of the Company (“CFO”) and under the direction of the CEO and
President of the Company and subject to the parameters developed by the CEO and President of the Company, shall diligently perform all services as may be assigned to him by the CEO and President of the Company (provided that, such services shall be
consistent with services typically performed by officers of companies similar to the Company), including the services set forth on Exhibit A hereto (which services are deemed to be consistent with services typically performed by officers of
companies similar to the Company), and shall exercise such power and authority as may from time to time be delegated to him by the CEO and President of the Company. The Executive shall devote his full time and attention to the business and affairs
of the Company and the Subsidiaries, render such services to the best of his ability, and use his best efforts to promote the interests of the Company and the Subsidiaries. The Executive shall also serve as CFO or Treasurer or other officer of such
of the Subsidiaries as directed by the Board of Directors, CEO or President. It shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures or fulfill
speaking engagements, or (iii) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities to the Company and the Subsidiaries in accordance with this
Agreement. 
  

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 2. Term. 
  

2.1 Initial Term. The initial Term of Employment under this Agreement, and the employment of the Executive hereunder, shall commence on February
1, 2005 (the “Commencement Date”) and shall expire on January 31, 2007, unless sooner terminated in accordance with Section 5 hereof (the “Initial Term”). 
  
 2.2 Renewal Terms. At the end of the Initial Term, the Term of Employment automatically shall renew for successive
one year terms (subject to earlier termination as provided in Section 5 hereof), unless the Company or the Executive delivers written notice to the other at least 3 months prior to the Expiration Date of its or his election not to renew the Term of
Employment. 
  
 2.3 Term of Employment and Expiration Date.
The period during which the Executive shall be employed by the Company pursuant to the terms of this Agreement is sometimes referred to in this Agreement as the “Term of Employment”, and the date on which the Term of Employment shall
expire (including the date on which any renewal term shall expire), is sometimes referred to in this Agreement as the “Expiration Date.” 
  
 3. Compensation. 
  
 3.1 Base Salary. The Executive shall receive a base salary at the annual rate of $200,000 (the “Base Salary”) during the Term of
Employment, with such Base Salary payable in installments consistent with the Company’s normal payroll schedule, subject to applicable withholding and other taxes. The Base Salary shall be reviewed, periodically, for merit increases and may, by
action and in the discretion of the Compensation Committee, be increased at any time or from time to time. 
  
 3.2 Bonuses. 
  
 The Executive shall receive such bonuses, if any, as the Compensation Committee shall determine. 
  
 4. Expense Reimbursement and Other Benefits. 
  
 4.1 Reimbursement of Expenses. Upon the submission of proper
substantiation by the Executive, and subject to such rules and guidelines as the Company may from time to time adopt, the Company shall reimburse the Executive for all reasonable expenses actually paid or incurred by the Executive during the Term of
Employment in the course of and pursuant to the business of the Company. The Executive shall account to the Company in writing for all expenses for which reimbursement is sought and shall supply to the Company copies of all relevant invoices,
receipts or other evidence reasonably requested by the Company. 
  
 4.2 Compensation/Benefit Programs. During the term of Employment, the Executive shall be entitled to participate in all medical, dental, hospitalization, accidental death 

  

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and dismemberment, disability, travel and life insurance plans, and any and all other plans as are presently and hereinafter offered by the Company to its
executives, including savings, pension, profit-sharing and deferred compensation plans, subject to the general eligibility and participation provisions set forth in such plans. 
  
 4.3 Working Facilities. During the Term of Employment, the Company shall furnish the Executive with an office,
secretarial help and such other facilities and services suitable to his position and adequate for the performance of his duties hereunder. 
  
 4.4 Automobile. During the Term of Employment, the Company shall provide the Executive with an automobile allowance equal to the most recently
approved executive automobile expense allowance policy for executives of the Company, together with reimbursement of the reasonable operating expenses thereof. 
  

4.5 Stock Options. During the Term of Employment, the Executive shall be eligible to be granted options (the “Stock Options”) to
purchase common stock (the “Common Stock”) of the Company under (and therefore subject to all terms and conditions of) the Company’s 1999 Stock Option Plan as amended, and any successor plan thereto (the “Stock Option Plan”)
and all rules of regulation of the Securities and Exchange Commission applicable to stock option plans then in effect. The number of Stock Options and terms and conditions of the Stock Options shall be determined by the Compensation Committee, or by
the Board of Directors of the Company, in its discretion and pursuant to the Stock Option Plan. 
  
 4.6 Other Benefits. The Executive shall be entitled to four weeks of vacation each calendar year during the Term of Employment, at such times as
the Executive and the Company shall mutually determine and provided that no vacation time shall interfere with the duties required to be rendered by the Executive hereunder. Any vacation time not taken by Executive during any calendar year may not
be carried forward into any succeeding calendar year. The Executive shall receive such additional benefits, if any, as the Compensation Committee of the Company shall from time to time determine. 
  
 5. Termination. 
  
 5.1 Termination for Cause. The Company shall at all times have the
right, upon written notice to the Executive, to terminate the Term of Employment, for Cause. For purposes of this Agreement, the term “Cause” shall mean (i) an action or omission of the Executive which constitutes a willful and material
breach of, or failure or refusal (other than by reason of his disability) to perform his duties under, this Agreement which is not cured within fifteen (15) days after receipt by the Executive of written notice of same, (ii) fraud, embezzlement,
misappropriation of funds or breach of trust in connection with his services hereunder, (iii) conviction of any crime which involves dishonesty or a breach of trust, or (iv) gross negligence in connection with the performance of the Executive’s
duties hereunder, which is not cured within fifteen (15) days after written receipt by the Executive of written notice of same. Any termination for Cause shall be made in writing to the Executive, which notice shall set forth the reasons upon which
the Company is relying for such termination. The Executive shall have the right to address the Board regarding the acts set forth in the notice of termination. Upon any termination pursuant to this Section 5.1, the Company shall pay to the Executive
his 

  

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Base Salary to the date of termination. The Company shall have no further liability hereunder other than for reimbursement for reasonable business expenses
incurred prior to the date of termination, subject, however, to the provisions of Section 4.1. 
  
 5.2 Disability. The Company shall at all times have the right, upon written notice to the Executive, to terminate the Term of Employment, if the Executive shall become entitled to benefits under the
Company’s disability insurance as then in effect, or, if the Executive shall as the result of mental or physical incapacity, illness or disability, become unable to perform his obligations hereunder for a period of 180 days in any 12-month
period. The Company shall have sole discretion based upon competent medical advice to determine whether the Executive continues to be disabled. Upon any termination pursuant to this Section 5.2, the Company shall pay to the Executive any unpaid Base
Salary through the effective date of termination specified in such notice, (ii) pay to the Executive a severance payment equal to 12 months of the Executive’s Base Salary at the time of the termination of the Executive’s employment with
the Company. The Company shall have no further liability hereunder other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1. 
  
 5.3 Death. Upon the death of the Executive during the Term of
Employment, the Company shall pay to the estate of the deceased Executive any unpaid Base Salary through the Executive’s date of death. The Company shall have no further liability hereunder other than for reimbursement for reasonable business
expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1. 
  
 5.4 Termination Without Cause. At any time the Company shall have the right upon ninety (90) days written notice to the Executive to terminate the
Term of Employment. Upon any termination pursuant to this Section 5.4 (that is not a termination under any of Sections 5.1, 5.2, 5.3, 5.5, 5.6 or in the event that the Company does not renew the Executive’s Term of Employment under the terms of
section 2.2, the Company shall (i) pay to the Executive any unpaid Base Salary through the effective date of termination specified in such notice, (ii) continue to pay the Executive’s Base Salary for a period (the “ Continuation
Period”) of 12 months following the termination of the Executive’s employment with the Company, in the manner and at such time as the Base Salary otherwise would have been payable to the Executive, (iii) continue to provide the Executive
with the benefits he was receiving under Sections 4.2 and 4.4 hereof (the “Benefits”) through the end of the Continuation Period in the manner as Benefits otherwise would have been provided to the Executive, and (iv) pay to the Executive
as a single lump sum payment, within 30 days of the Expiration Date, a lump sum benefit equal to the value of the portion of his benefits under any savings, pension, profit sharing or deferred compensation plans that are forfeited under such plans
by reason of the termination of his employment hereunder prior to the end of the Continuation Period. The Company’s good faith determination of the amount that would have been contributed or the value of any Benefits that would have accrued
under any plan shall be binding and conclusive on the Executive. For this purpose, the Company may use as the value of any Benefit the cost to the Company of providing that Benefit to the Executive. Further, the Executive shall become immediately
vested in his Stock Options. The Company shall have no further liability hereunder other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1.

  

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 5.5 Termination by Executive. 
  
 a. The Executive shall at all times have the right, upon ninety (90) days written notice to the Company, to terminate the
Term of Employment. 
  
 b. Upon termination of the Term of
Employment pursuant to this Section 5.5 (that is not a termination under Section 5.6) by the Executive without Good Reason, the Company shall pay to the Executive any unpaid Base Salary through the effective date of termination specified in such
notice. The Company shall have no further liability hereunder other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1. 
  
 c. Upon termination of the Term of Employment pursuant to this Section 5.5
(that is not a termination under Section 5.6) by the Executive for Good Reason, the Company shall pay to the Executive the same amounts that would have been payable by the Company to the Executive under Section 5.4 of this Agreement if the Term of
Employment had been terminated by the Company without Cause. The Company shall have no further liability hereunder other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the
provisions of Section 4.1. 
  
 d. For purposes of this Agreement,
“Good Reason” shall mean (i) the assignment to the Executive of any material duties inconsistent in any material respect with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties
or responsibilities as set forth in Section 1.2 of this Agreement, or any other action by the Company intended to and which results in a diminution in such position, authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company within 15 days after receipt of written notice thereof given by the Executive; (ii) any failure by the Company to comply with any of the provisions of
Section 3.1 of this Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the Company within 15 days after receipt of written notice thereof given by the Executive; (iii) any
termination by the Company of the Executive’s employment otherwise than for Cause pursuant to Section 5.1 of this Agreement, or by reason of the Executive’s disability or death pursuant to Sections 5.2 and 5.3 of this Agreement,
respectively, prior to the Expiration Date. 
  
 5.6 Change in
Control of the Company. 
  
 a. Unless otherwise provided in
Section 5.7 hereof, in the event that (i) a Change in Control (as defined in paragraph (b) of this Section 5.6) in the Company shall occur during the Term of Employment, and (ii) prior to the earlier of the Expiration Date and one year after the
date of the Change in Control, either the Executive’s Term of Employment is terminated by the Company without cause, as defined in Section 5.4 hereof, or (y) the Executive terminates the Term of Employment pursuant to Section 5.5(b) hereof,
then the Company shall (1) pay to the Executive any unpaid Base Salary through the effective date of termination, (2) pay to the Executive as a single lump sum payment, within 30 days of the termination of his employment hereunder, a lump sum
payment equal to the sum of (x) one times the sum of Executive’s (i) annual Base Salary, (ii) average bonus for the last two years, (iii) except as set 

  

 - 5 - 

 
forth in (iv), other average compensation, if any, for the last two years and (v) the value of the annual fringe benefits (based upon their cost to the
Company) required to be provided to the Executive under Sections 4.2 and 4.4 hereof, for the year immediately preceding the year in which his employment terminates, plus (y) the value of the portion of his benefits under any savings, pension, profit
sharing or deferred compensation plans that are forfeited under those plans by reason of the termination of his employment hereunder. Further, upon the Change in Control, the Executive’s Stock Options shall immediately vest. The Company shall
have no further liability hereunder other than for reimbursement for reasonable business expenses incurred prior to the date of termination, subject, however, to the provisions of Section 4.1. 
  
 b. For the purposes of this Agreement, the term “Change in
Control” shall mean (a) any sale, lease, exchange or other transfer (in one transaction or a series of transactions) of all or substantially all of the assets of the Company; or (b) any consolidation or merger or other business combination of
the Company with any other entity where the shareholders of the Company, immediately prior to the consolidation or merger or other business combination would not, immediately after the consolidation or merger or other business combination,
beneficially own, directly or indirectly, shares representing fifty percent (50%) of the combined voting power of all of the outstanding securities of the entity issuing cash or securities in the consolidation or merger or other business combination
(or its ultimate parent corporation, if any). Notwithstanding the foregoing, no transaction shall be deemed to constitute a “Change in Control” for purposes of this Agreement if such transaction involves the electronic security services
industry or is procured, directly or indirectly, by the Employee or any affiliate of the Employee. 
  
 5.7 Certain Additional Payments by the Company. 
  
 a. Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment, distribution or other action by the
Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, (including any additional payments required under this Section 5.7) (a “Payment”)
would be subject to an excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by the Executive with respect to any such excise tax (such excise tax,
together with any such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), the Company shall make a payment to the Executive (a “Gross-Up Payment”) in an amount such that after payment by the
Executive of all taxes (including any Excise Tax) imposed upon the Gross-Up Payment, the Executive retains (or has had paid to the Internal Revenue Service on his behalf) an amount of the Gross-Up Payment equal to the sum of (x) the Excise Tax
imposed upon the Payments and (y) the product of any deductions disallowed because of the inclusion of the Gross-Up Payment in the Executive’s adjusted gross income and the highest applicable marginal rate of federal income taxation for the
calendar year in which the Gross-Up Payment is to be made. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the
calendar year in which the Gross-Up Payment is to be made, and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state and local taxes. 
  

 - 6 - 

 b. Subject to the provisions of paragraph (c) of this Section 5.7, all determinations required to be
made under this Section 5.7, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by the Company’s tax advisor,
which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment, or such earlier time as is requested by the Company. In the
event that both of the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Executive shall have the option to appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to
this Section 5.7, shall be paid by the Company to the Executive within five days of the receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive with a written opinion that failure to report the Excise Tax on the Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall
be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will
not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts its remedies pursuant to Section 5.7 and the Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive.

  
 c. The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on
which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that it
desires to contest such claim, the Executive shall: 
  
 (i) give
the Company any information reasonably requested by the Company relating to such claim, 
  
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such
claim by an attorney reasonably selected by the Company, 
  
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
  

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 (iv) permit the Company to participate in any proceedings relating to such claim; 
  
 provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 5.7(c), the Company shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue
raised by the Internal Revenue Service or any other taxing authority. 
  
 d. If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 5.7(c), the Executive becomes entitled to receive any refund with respect to such claim, the Executive shall (subject to the Company’s
complying with the requirements of Section 5.7(c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 5.7(c), a determination is made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid. 
  
 5.8 Resignation. Upon any
termination of employment pursuant to this Article 5, the Executive shall be deemed to have resigned as an officer, and if he or she was then serving as a director of the Company, as a director, and if required by the Board, the Executive hereby
agrees to immediately execute a resignation letter to the Board. 
  
 5.9 Survival. The provisions of this Article 5 shall survive the termination of this Agreement, as applicable. 
  

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 6. Restrictive Covenants. 
  
 6.1 Non-competition. At all times while the Executive is employed by the Company and for a two (2) year period after
the termination of the Executive’s employment with the Company for any reason other than by the Company without Cause (as defined in Section 5.1 hereof) or by the Executive for Good Reason (as defined in Section 5.5(d) hereof), the Executive
shall not, directly or indirectly, engage in or have any interest in any sole proprietorship, partnership, corporation or business or any other person or entity (whether as an employee, officer, director, partner, agent, security holder, creditor,
consultant or otherwise) that directly or indirectly (or through any affiliated entity) engages in competition with the Company (for this purpose, any business that engages in the electronic security services business in the United States or other
locations that the Company engages in such business or any business that engages in the aggregate industry, ready-mix concrete industry, land development construction industry or the water desalination and sewage treatment business on any of the
islands of the Bahamas, Puerto Rico, US Virgin Islands, St. Maarten, St Martin or Antigua or any other islands that the Company engages in such business, shall be deemed to be in competition with the Company); provided that such provision shall not
apply to the Executive’s ownership of Common Stock of the Company or the acquisition by the Executive, solely as an investment, of securities of any issuer that is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
as amended, and that are listed or admitted for trading on any United States national securities exchange or that are quoted on the National Association of Securities Dealers Automated Quotations System, or any similar system or automated
dissemination of quotations of securities prices in common use, so long as the Executive does not control, acquire a controlling interest in or become a member of a group which exercises direct or indirect control or, more than five percent of any
class of capital stock of such corporation. 
  
 6.2
Nondisclosure. The Executive shall not at any time divulge, communicate, use to the detriment of the Company or for the benefit of any other person or persons, or misuse in any way, any Confidential Information (as hereinafter defined)
pertaining to the business of the Company. Any Confidential Information or data now or hereafter acquired by the Executive with respect to the business of the Company (which shall include, but not be limited to, information concerning the
Company’s financial condition, prospects, technology, customers, suppliers, sources of leads and methods of doing business) shall be deemed a valuable, special and unique asset of the Company that is received by the Executive in confidence and
as a fiduciary, and Executive shall remain a fiduciary to the Company with respect to all of such information. For purposes of this Agreement, “Confidential Information” means information disclosed to the Executive or known by the
Executive as a consequence of or through his employment by the Company (including information conceived, originated, discovered or developed by the Executive) prior to or after the date hereof, and not generally known, about the Company or its
business. Notwithstanding the foregoing, nothing herein shall be deemed to restrict the Executive from disclosing Confidential Information to the extent required by law. 
  
 6.3 Non-solicitation of Employees and Clients. At all times while the Executive is employed by the Company and for a
two (2) year period after the termination of the Executive’s employment with the Company for any reason, for the Executive shall not, directly or indirectly, for himself or for any other person, firm, corporation, partnership, association or

  

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other entity (a) employ or attempt to employ or enter into any contractual arrangement with any employee or former employee of the Company, unless such
employee or former employee has not been employed by the Company for a period in excess of six months, and/or (b) call on or solicit any of the actual or targeted prospective clients of the Company on behalf of any person or entity in connection
with any business competitive with the business of the Company, nor shall the Executive make known the names and addresses of such clients or any information relating in any manner to the Company’s trade or business relationships with such
customers, other than in connection with the performance of Executive’s duties under this Agreement. 
  
 6.4 Books and Records. All books, records, and accounts relating in any manner to the customers or clients of the Company, whether prepared by the
Executive or otherwise coming into the Executive’s possession, shall be the exclusive property of the Company and shall be returned immediately to the Company on termination of the Executive’s employment hereunder or on the Company’s
request at any time. 
  
 6.5 Definition of Company. For
purposes of this Article 6, the term “Company” also shall include the Subsidiaries, any existing or future subsidiaries of the Company that are operating during the time periods described herein and any other entities that directly or
indirectly, through one or more intermediaries, control, are controlled by or are under common control with the Company during the periods described herein. 
  
 6.6 Acknowledgment by Executive. The Executive acknowledges and confirms that (a) the restrictive covenants contained in this Article 6 are
reasonably necessary to protect the legitimate business interests of the Company, and (b) the restrictions contained in this Article 6 (including without limitation the length of the term of the provisions of this Article 6) are not overbroad,
overlong, or unfair and are not the result of overreaching, duress or coercion of any kind. The Executive further acknowledges and confirms that his full, uninhibited and faithful observance of each of the covenants contained in this Article 6 will
not cause him any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained herein will not impair his ability to obtain employment commensurate with his abilities and on terms fully acceptable to him or
otherwise to obtain income required for the comfortable support of him and his family and the satisfaction of the needs of his creditors. The Executive acknowledges and confirms that his special knowledge of the business of the Company is such as
would cause the Company serious injury or loss if he were to use such ability and knowledge to the benefit of a competitor or were to compete with the Company in violation of the terms of this Article 6. The Executive further acknowledges that the
restrictions contained in this Article 6 are intended to be, and shall be, for the benefit of and shall be enforceable by, the Company’s successors and assigns. 
  
 6.7 Reformation by Court. In the event that a court of competent jurisdiction shall determine that any provision of
this Article 6 is invalid or more restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Article 6 within the jurisdiction of such court, such provision shall be interpreted and enforced as if it
provided for the maximum restriction permitted under such governing law. 
  
 6.8 Extension of Time. If the Executive shall be in violation of any provision of this Article 6, then each time limitation set forth in this Article 6 shall be extended for a period 

  

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of time equal to the period of time during which such violation or violations occur. If the Company seeks injunctive relief from such violation in any court,
then the covenants set forth in this Article 6 shall be extended for a period of time equal to the pendency of such proceeding including all appeals by the Executive. 
  
 6.9 Survival. The provisions of this Article 6 shall survive the termination of this Agreement, as applicable.

  
 7. Injunction. It is recognized and hereby acknowledged
by the parties hereto that a breach by the Executive of any of the covenants contained in Article 6 of this Agreement will cause irreparable harm and damage to the Company and Subsidiaries, the monetary amount of which may be virtually impossible to
ascertain. As a result, the Executive recognizes and hereby acknowledges that the Company and Subsidiaries shall be entitled to an injunction from any court of competent jurisdiction enjoining and restraining any violation of any or all of the
covenants contained in Article 6 of this Agreement by the Executive or any of his affiliates, associates, partners or agents, either directly or indirectly, and that such right to injunction shall be cumulative and in addition to whatever other
remedies the Company or the Subsidiaries may possess. 
  
 8.
Mediation. Except to the extent the Company has the right to seek an injunction under Section 7 hereof, in the event a dispute arises out of or relates to this Agreement, or the breach thereof, and if the dispute cannot be settled through
negotiation, the parties hereby agree first to attempt in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Employment Mediation Rules before resorting to arbitration hereunder. 

 
 9. Arbitration. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in Broward or Palm Beach Counties, Florida, in accordance with the Rules of the American Arbitration Association then in effect (except to the extent that the procedures
outlined below differ from such rules). Within thirty (30) days after written notice by either party has been given that a dispute exists and that arbitration is required, each party must select an arbitrator and those two arbitrators shall
promptly, but in no event later than thirty (30) days after their selection, select a third arbitrator. The parties agree to act as expeditiously as possible to select arbitrators and conclude the dispute. The selected arbitrators must render their
decision in writing. The cost and expenses of the arbitration and of enforcement of any award in any court shall be borne by the non-prevailing party. If advances are required, each party will advance one-half of the estimated fees and expenses of
the arbitrators. Judgment may be entered on the arbitrators’ award in any court having jurisdiction. Although arbitration is contemplated to resolve disputes hereunder, either party may proceed to court to obtain an injunction to protect its
rights hereunder, the parties agreeing that either could suffer irreparable harm by reason of any breach of this Agreement. Pursuit of an injunction shall not impair arbitration on all remaining issues. 
  
 10. Section 162(m) Limits. Notwithstanding any other provision of this
Agreement to the contrary, if and to the extent that any remuneration payable by the Company to the Executive for any year would exceed the maximum amount of remuneration that the Company may deduct for that year under Section 162(m) (“Section
162(m)”) of the Internal Revenue Code of 1986, as 

  

 - 11 - 

 
amended (the “Code”), payment of the portion of the remuneration for that year that would not be so deductible under Section 162(m) shall, in the
sole discretion of the Board, be deferred and become payable at such time or times as the Board determines that it first would be deductible by the Company under Section 162(m), with interest at the “short-term applicable rate” as such
term is defined in Section 1274(d) of the Code. The limitation set forth under this Section 10 shall not apply with respect to any amounts payable to the Executive pursuant to Article 5 hereof. 
  
 11. Assignment. Neither party shall have the right to assign or
delegate his rights or obligations hereunder, or any portion thereof, to any other person. 
  
 12. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 
  

13. Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and,
upon its effectiveness, shall supersede all prior agreements, understandings and arrangements, both oral and written, between the Executive and the Company (or any of its affiliates) with respect to such subject matter. This Agreement may not be
modified in any way unless by a written instrument signed by both the Company and the Executive. 
  
 14. Notices: All notices required or permitted to be given hereunder shall be in writing and shall be personally delivered by courier, sent by
registered or certified mail, return receipt requested or sent by confirmed facsimile transmission addressed as set forth herein. Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on the date of
delivery and notices mailed in accordance with the foregoing shall be deemed given upon the earlier of receipt by the addressee, as evidenced by the return receipt thereof, or three (3) days after deposit in the U.S. mail. Notice shall be sent (i)
if to the Company, addressed to Devcon International Corp., 1350 E. Newport Center Drive, Suite 201, Deerfield Beach, Florida 33442, Attention: Secretary of the Board, and (ii) if to the Executive, to his address as reflected on the payroll records
of the Company, or to such other address as either party hereto may from time to time give notice of to the other. 
  
 15. Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and, where applicable, assigns, including, without limitation, any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise. 
  
 16. Severability. The invalidity of any one or more of the words,
phrases, sentences, clauses or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the
event that any one or more of the words, phrases, sentences, clauses or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences,
clause or clauses, or section or sections had not been inserted. If such invalidity is caused by length of time or size of area, or both, the otherwise invalid provision will be considered to be reduced to a period or area which would cure such
invalidity. 
  

 - 12 - 

 17. Waivers. The waiver by either party hereto of a breach or violation of any term or provision
of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation. 
  
 18. Damages. Nothing contained herein shall be construed to prevent the Company or the Executive from seeking and recovering from the other damages
sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement. In the event that either party hereto brings suit for the collection of any damages resulting from, or the injunction of any action
constituting, a breach of any of the terms or provisions of this Agreement, then the party found to be at fault shall pay all reasonable court costs and attorneys’ fees of the other. 
  
 19. Section Headings. The section headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. 
  
 20. No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person other than the Company, the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and assigns, any rights or remedies under or by reason of this Agreement. 
  
 21. Indemnification. 
  
 a. Subject to limitations imposed by law, the Company shall indemnify and hold harmless the Executive to the fullest extent permitted by law from and
against any and all claims, damages, expenses (including attorneys’ fees), judgments, penalties, fines, settlements, and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or
appeal of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and to which the Executive was or is a party or is threatened to be made a party by reason of the fact that the
Executive is or was an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive in any such capacity or capacities, provided that the Executive acted in good faith, in a manner that was not grossly
negligent or constituted willful misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful. The Company also shall pay any and all expenses (including attorney’s fees) incurred by the Executive as a result of the Executive being called as a witness in connection with any matter involving the Company and/or any of its
officers or directors. 
  
 b. The Company shall pay any expenses
(including attorneys’ fees), judgments, penalties, fines, settlements, and other liabilities incurred by the Executive in investigating, defending, settling or appealing any action, suit or proceeding described in this Section 21 in advance of
the final disposition of such action, suit or proceeding. The Company shall promptly pay the amount of such expenses to the Executive, but in no event later than 10 days following the Executive’s delivery to the Company of a written request for
an advance pursuant to this Section 21, together with a reasonable accounting of such expenses. 
  

 - 13 - 

 c. The Executive hereby undertakes and agrees to repay to the Company any advances made pursuant to this
Section 21 if and to the extent that it shall ultimately be found that the Executive is not entitled to be indemnified by the Company for such amounts. 
  
 d. The Company shall make the advances contemplated by this Section 21 regardless of the Executive’s financial ability to make repayment, and
regardless whether indemnification of the Indemnitee by the Company will ultimately be required. Any advances and undertakings to repay pursuant to this Section 21 shall be unsecured and interest-free. 
  
 e. The provisions of this Section 21 shall survive the termination of this
Agreement. 
  

 - 14 - 

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

  

			
	COMPANY:
	
	 DEVCON INTERNATIONAL CORP., a Florida
 corporation

		
	 By:
	 	 /s/ Donald L. Smith, Jr.

	 Name:
	 	 Donald L. Smith, Jr.

	 Title:
	 	 Chairman of the Board and CEO

	
	EXECUTIVE:
	
	 RON G. LAKEY

		
	 	 	 /s/ Ron G. Lakey

	 Name:
	 	 Ron G. Lakey

  

 - 15 - 

 EXHIBIT A 
  
 REQUIRED CFO SERVICES 
  

	 	•	 	Work closely with the CEO and President and all levels of senior management to develop short and long term strategic plans to meet the growth and profitability objectives of the
organization. 

  

	 	•	 	Review existing business operations and identify ways to enhance profitability and improve business processes to increase productivity. 

  

	 	•	 	Review historical reporting practices and identify areas to enhance financial controls, policies and procedures to ensure timely and accurate financial statements are prepared to
measure the business’s performance. 

  

	 	•	 	Oversee the areas of taxes, audit, and financial reporting, treasury, cash-management and information technology and ensure that the Company is in compliance with Sarbanes-Oxley.

  

	 	•	 	Conduct due diligence on prospective acquisition targets and provide strategic advice and direct negotiations for acquisitions, joint ventures and other alliances in order to grow
the business. 

  

	 	•	 	Work closely with institutional investors to raise capital and deal with banks to structure syndicated debt deals in order to fund expansion. 

  

	 	•	 	Work with the President, investors and investment banks to spearhead any equity offerings, including any secondary public offering following successful completion of a targeted
acquisition to grow the security services business. 

  

	 	•	 	Facilitate effective managerial decisions by providing timely and accurate financial and operations information to senior management. 

  

	 	•	 	Ensure optimal utilization of financial resources and working capital through sound forecasting and cash management disciplines. 

  

	 	•	 	Minimize tax liabilities through effective tax planning and research and executing those tax strategies in compliance with United States GAAP. 

  

	 	•	 	Interact with external constituencies, including lending institutions, investors in accordance with applicable laws, public accountants, legal counsel and Wall Street analysts to
keep them informed of the Company’s present and projected financial condition to manage earnings guidance reporting and enhance credibility to raise capital for planned business expansion. 

  

	 	•	 	Ensure continuing departmental effectiveness through hiring, training, developing and motivating a competent, proactive financial staff. 

  

	 	•	 	Present financial information to the Board of Directors and senior management that is clear, insightful and offers appropriate plans of action. 

  

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