Document:

ex10-25.htm

Exhibit 10.25

 

 

Scott A. McPherson

319 North Woodmont Drive

Downingtown, PA 19335

(484) 888-8171

 

December 14, 2012

 

Mr. Neil Alpert

President and Chief Executive Officer

LaserLock Technologies, Inc.

837 Lindy Lane

Bala Cynwyd, PA 19004

 

Dear Mr. Alpert:

 

This letter constitutes an agreement between LaserLock Technologies, Inc. and Scott A. McPherson, under which I will assist you with your financial reporting as your Chief Financial Officer.

 

The professional consulting services I currently expect to provide include the following:

 

●         Update QuickBooks files from books of original entry.

●         Assistance with the preparation of quarterly and annual financial statements that will be used in Securities and Exchange Commission filings and also submitted to your auditors for their audit and/or review. We will not audit or review these financial statements and, accordingly, will not express an opinion or any other form of assurance on the financial statements.

●         Assist management in assembling schedules to assist the auditors with the quarterly reviews and year end audit.

●         The financial statements that are included are December 31, 2012, March 31, 2013, June 30, 2013, and September 30, 2013.

●         Preparation of corporate income tax returns for December 31, 2012 for LaserLock Technologies, Inc. and LL Security Products, Inc.

 

You are responsible for making all management decisions and performing all management functions, and for designating an individual with suitable skill, knowledge, or experience to oversee any bookkeeping services, tax services or other services I provide. You are responsible for evaluating the adequacy and results of the services performed and accepting responsibility for such services. You are responsible for establishing and maintaining internal controls, including monitoring ongoing activities.

 

  

  

  

 

	LaserLock Technologies, Inc.	-2- 	December 14, 2012

 

None of these services can be relied on to disclose errors, fraud, or illegal acts that may exist. However, I will inform you of any material errors and of any evidence or information that comes to my attention during the performance of my procedures that fraud may have occurred. In addition, I will report to you any evidence or information that comes to my attention during the performance of my procedures regarding illegal acts that may have occurred, unless they are clearly inconsequential. I have no responsibility to identify and communicate deficiencies in your internal control as part of this engagement.

 

My engagement includes only the services specially described above and does not include services relative to any future mergers or acquisitions, option valuations or bringing XBRL or Edgarization of financial statements in-house. While these and other services are not included in my current engagement, I would be glad to discuss any future opportunities.

 

During the course of this engagement it may be necessary for me to prepare written reports that support my conclusions. These reports are to be used only in connection with this engagement and may not be published or used in any manner without the written consent of me.

 

It is understood that Scott A. McPherson has been retained for this engagement by LaserLock Technologies, Inc. I estimate that my fees for these services will be:

 

	
Quarterly for Forms 10Q

	 	 	$11,000	 
	
Annually for Form 10K

	 	 	15,000	 
	
Annually for Corporate Income Tax Returns

	 	 	3,000	 

 

My billings will be sent to LaserLock Technologies, Inc., c/o Neil Alpert and are payable upon receipt.

 

Prior to the beginning of any services, I will need to be paid for our outstanding invoices for previous services totaling $17,800.

 

This agreement will become effective as soon as you sign and date the original copy of this letter and return the signed copy to me. If the need for additional services arises, my agreement with you will need to be revised. It is customary for me to describe these revisions in an addendum to this letter.

 

  

  

  

 

	LaserLock Technologies, Inc. 	-3- 	December 14, 2012

 

If this letter correctly describes my engagement, I would appreciate you signing the original copy of this letter and returning it for my files.

 

	 	
Sincerely,

	 
	 	 	 
	 	/s/ Scott A. McPherson	 
	 	Scott A. McPherson	 

 

RESPONSE:

 

This letter correctly sets forth the understanding of LaserLock Technologies, Inc.

 

	Officer’s Signature: 	/s/ Neil Alpert	 

 

	Title: 	President	 

 

	
Date:  

	01/01/13ex10-26.htm

Exhibit 10.26

LASERLOCK TECHNOLOGIES, INC.

NONQUALIFIED STOCK OPTION GRANT

This NONQUALIFIED STOCK OPTION GRANT AGREEMENT (this “Agreement”), dated as of November 21, 2012 (the “Date of Grant”), is delivered by LaserLock Technologies, Inc. (the “Company”) to Norman A. Gardner (the “Grantee”).

 

RECITALS

 

WHEREAS, the Company maintains the LaserLock Technologies, Inc. 2003 Stock Option Plan (the “Plan”) which provides for the grant of options to purchase shares of common stock of the Company;

 

WHEREAS, the Board of Directors of the Company (the “Board”) has decided to make a stock option grant to the Grantee;

 

WHEREAS, while the Company maintains the Plan, the grant described above is to be made outside of the Plan; and

 

WHEREAS, while this grant is made outside of the Plan, the material terms of the Plan are incorporated into this Agreement by reference.

 

NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows:

 

1.             Grant of Option.  Subject to the terms and conditions of this Agreement and the Plan, the Company hereby grants to the Grantee a nonqualified stock option (the “Option”) to purchase 1,000,000 shares of common stock of the Company (“Shares”) at an exercise price of $0.05 per Share.  The Option shall become exercisable according to Paragraph 2 below.

 

2.             Exercisability of Option.  The Option shall become exercisable on the following dates, if the Grantee is providing service to the Company (including as a member of its Board of Directors) on the applicable date:

 

	
Date

 

	
Shares for Which the Option is

Exercisable

	
Date of Grant

	
 

1,000,000

 

 

The exercisability of the Option is cumulative, but shall not exceed 100% of the Shares subject to the Option.  If the foregoing schedule would produce fractional Shares, the number of Shares for which the Option becomes exercisable shall be rounded down to the nearest whole Share.

 

  

  

  

 

3.             Term of Option.

 

(a)           The Option shall have a term of ten years from the Date of Grant and shall terminate at the expiration of that period, unless it is terminated at an earlier date pursuant to the provisions of this Agreement or the Plan.

 

(b)           The Option shall automatically terminate upon the happening of the first of the following events:

 

(i)           The expiration of the 90-day period after the Grantee ceases to provide service to the Company if the termination is for any reason other than death or Cause (as defined in the Plan).

 

(ii)          The expiration of the one-year period after the Grantee ceases to provide service to the Company if the Grantee dies while providing service to the Company or within 90 days after the Grantee ceases to so provide such services on account of a termination described in subparagraph (i) above.

 

(iii)         The date on which the Grantee ceases to provide service to the Company for Cause.  In addition, notwithstanding the prior provisions of this Paragraph 3, if the Grantee engages in conduct that constitutes Cause after the Grantee’s service terminates, the Option shall immediately terminate.

 

Notwithstanding the foregoing, in no event may the Option be exercised after the date that is immediately before the tenth anniversary of the Date of Grant.  Any portion of the Option that is not exercisable at the time the Grantee ceases to provide service to the Company shall immediately terminate.  For purposes of this paragraph (b), service to the Company as an employee, independent contractor or outside Board member shall constitute “service to the Company.”

 

4.             Exercise Procedures.

 

(a)           Subject to the provisions of Paragraphs 2 and 3 above, the Grantee may exercise part or all of the exercisable Option by giving the Company written notice of intent to exercise in the manner provided in this Agreement, specifying the number of Shares as to which the Option is to be exercised and the method of payment.  Payment of the exercise price shall be made in accordance with procedures established by the Board from time to time based on type of payment being made but, in any event, prior to issuance of the Shares.  The Grantee shall pay the exercise price (i) in cash, (ii) unless the Board determines otherwise, by delivering Shares owned by the Grantee and having a Fair Market Value (as defined in the Plan) on the date of exercise at least equal to the exercise price or by attestation (on a form prescribed by the Board) to ownership of Shares having a Fair Market Value on the date of exercise at least equal to the exercise price, (iii) by payment through a broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, (iv) by surrender of all or any part of the vested Shares for the Option is exercisable to the Company for an appreciation distribution payable in shares of common stock with a Fair Market Value at the time of the Option surrender equal to the dollar amount by which the then Fair Market Value of the shares of common stock subject to the surrendered portion exceeds the aggregate exercise price payable for those shares, or (v) by such other method as the Board may approve.  The Board may impose from time to time such limitations as it deems appropriate on the use of Shares of the Company to exercise the Option.

 

  

-2-

  

 

(b)           The obligation of the Company to deliver Shares upon exercise of the Option shall be subject to all applicable laws, rules, and regulations and such approvals by governmental agencies as may be deemed appropriate by the Board, including such actions as Company counsel shall deem necessary or appropriate to comply with relevant securities laws and regulations.

 

(c)           All obligations of the Company under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts required to be withheld for any taxes, if applicable.  Subject to Board approval, the Grantee may elect to satisfy any tax withholding obligation of the Company with respect to the Option by having Shares withheld up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and local tax liabilities.

 

5.             Change of Control.  The provisions of the Plan applicable to a Change of Control (as defined in the Plan) shall apply to the Option, and, in the event of a Change of Control, the Board may take such actions as it deems appropriate pursuant to the Plan.

 

6.             Restrictions on Exercise.  Except as the Board may otherwise permit pursuant to the Plan, only the Grantee may exercise the Option during the Grantee’s lifetime and, after the Grantee’s death, the Option shall be exercisable (subject to the limitations specified in the Plan) solely by the legal representatives of the Grantee, or by the person who acquires the right to exercise the Option by will or by the laws of descent and distribution, to the extent that the Option is exercisable pursuant to this Agreement.

 

7.             Grant Subject to Plan Provisions.  This grant shall be interpreted in accordance with the Plan, the terms of which are incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  The grant and exercise of the Option are subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Board in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the Shares, (c) changes in capitalization of the Company and (d) other requirements of applicable law.  The Board shall have the authority to interpret and construe the Option pursuant to the terms of the Plan, and its decisions shall be conclusive as to any questions arising hereunder.

 

8.             No Employment or Other Rights.  The grant of the Option shall not confer upon the Grantee any right to be retained by or in the employ or service of the Company and shall not interfere in any way with the right of the Company to terminate the Grantee’s employment or service at any time. The right of the Company to terminate the Grantee’s employment or service at any time for any reason is specifically reserved.

 

  

-3-

  

 

9.             No Stockholder Rights.  Neither the Grantee, nor any person entitled to exercise the Grantee’s rights in the event of the Grantee’s death, shall have any of the rights and privileges of a stockholder with respect to the Shares subject to the Option, until certificates for Shares have been issued upon the exercise of the Option.

 

10.           Assignment and Transfers.  Except as the Board may otherwise permit pursuant to the Plan, the rights and interests of the Grantee under this Agreement may not be sold, assigned, encumbered or otherwise transferred except, in the event of the death of the Grantee, by will or by the laws of descent and distribution.  In the event of any attempt by the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or any right hereunder, except as provided for in this Agreement, or in the event of the levy or any attachment, execution or similar process upon the rights or interests hereby conferred, the Company may terminate the Option by notice to the Grantee, and the Option and all rights hereunder shall thereupon become null and void.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries, and affiliates.  This Agreement may be assigned by the Company without the Grantee’s consent.

 

11.           Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to the conflicts of laws provisions thereof.

 

12.           Notice.  Any notice to the Company provided for in this instrument shall be addressed to the Company in care of the President at the headquarters of the Company, and any notice to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of the Company, or to such other address as the Grantee may designate to the Company in writing.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service.

 

[SIGNATURE PAGE FOLLOWS]

 

  

-4-

  

 

IN WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and attest this Agreement, and the Grantee has executed this Agreement, effective as of the Date of Grant.

	  	
LASERLOCK TECHNOLOGIES, INC.

	  
	  	  	  
	  	
By: 

	/s/ Neil Alpert  	  
	  	
Name:

	Neil Alpert 	  
	 	
Title:

	President and COO	  

I hereby accept the Option described in this Agreement, and I agree to be bound by the terms of the Plan and this Agreement.  I hereby further agree that all the decisions and determinations of the Board shall be final and binding.

 

	 	
Grantee:

	/s/  Norman A. Gardner	  

 

 

[Signature Page to Option Agreement]

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