Document:

ex10_1.htm

    
      
        

      

    

    Exhibit
10.1

     

    
      
        LOAN
AGREEMENT

      

      
        

         

        THIS LOAN
AGREEMENT, dated for reference March 12 , 2008 is made

      

      
         

        BETWEEN:

      

      
         

      

      
        
          	
                  DAVID LYALL, Suite 2000,
      Commerce Place, 400 Burrard Street, Vancouver, B.C., V6C
    3A6

                

        

         

        (the
"Lender");

      

      
         

        AND:

      

      
         

      

      
        
          	
                  GULF
         WESTERN    PETROLEUM    CORPORATION,    acorporation
      incorporated under the laws of the State of Nevada, with its registered
      office at 4801 Woodway Drive, Suite 306W, Houston, Texas
      77056

                

        

         

        (the
"Borrower").

      

      
        

         

        WHEREAS
the Borrower wishes to borrow and the Lender is willing to lend to the Borrower
US$500,000 (the "Principal") on the terms of this Agreement.

      

      
         

        NOW
THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises and the
mutual covenants and agreements hereinafter set forth, the parties hereto agree
as follows:

      

      
        

         

        
          	
                  1.

                	
                  DEFINITIONS

                

        

      

      
         

        Where
used in this Agreement, the following words and phrases shall have the following
meaning:

      

      
         

        
          	
                	
                  (a)

                	
                  "Agreement"
      means this Agreement and the schedule hereto, as at any time amended or
      modified and in effect;

                

        

      

      
         

        
          	
                	
                  (b) 

                	
                  "Bonus"
      has the meaning given to that term in section
5;

                

        

      

      
         

        
          	
                	
                  (c) 

                	
                  "Event
      of Default" means any event specified in subsection
  8.1;

                

        

      

      
         

        
          	
                	
                  (d) 

                	
                  "Lender's
      Security" means the Note;

                

        

      

      
         

        
          	
                	
                  (e)

                	
                  "Loan"
      means the loan by the Lender to the Borrower established pursuant to
      subsection 3.1; and

                

        

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
         

      

      
        
          	
                	
                  (f)

                	
                  "Note"
      means the promissory note to be made by the Borrower to the Lender as
      evidence of the Loan.

                

        

      

      
        

         

        
          	
                  2.

                	
                  INTERPRETATION

                

        

      

      
         

        
          	
                	
                  2.1

                	
                  Governing
      Law

                

        

      

      
         

        This
Agreement is governed by the laws of the Province of British Columbia and the
parties attorn to the non-exclusive jurisdiction of the courts of British
Columbia for the resolution of all disputes under this
Agreement.

      

      
        
          
             

            
              	
                    	
                      2.2

                    	
                      Severability

                    

            

          

          
             
If any one or more of
the provisions contained in this Agreement is found to be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein will not in any way be affected or
impaired thereby.

        

      

      
         

        
          	    	
                  2.3

                	
                  Parties
      In Interest

                

        

      

      
         

        This
Agreement enures to the benefit of and is binding on the parties hereto and
their respective successors and permitted assigns.

      

      
         

        
          	
                	
                  2.4

                	
                  Headings
      and Marginal References

                

        

      

      
         

        The
division of this Agreement into sections, subsections, paragraphs and
subparagraphs and the insertion of headings are for convenience of reference
only and do not affect the construction or interpretation of this
Agreement.

      

      
        
          
             

            
              	
                    	
                      
                        2.5

                      

                    	
                      
                        Currency

                      

                    

            

          

          
             

          

        

        
          
          

        

      

      
        All
statements of, or references to, dollar amounts in this Agreement means lawful
currency of United Stales of America.

      

      
         

         

        
          	
                  3.

                	
                  THE
      LOAN

                

        

      

      
         

        
          	
                	
                  3.1

                	
                  Establishment
      of the Loan

                

        

      

      
         

        The
Lender agrees, on the terms and conditions set forth in this Agreement, to lend
to the Borrower $500,000.

      

      
         

        
          	
                	
                  3.2

                	
                  Evidence of
      Indebtedness

                

        

      

      
         

        Indebtedness
of the Borrower to the Lender in respect of the Loan will be evidenced by the
execution this Agreement and the Note, which will be made by the Borrower to the
Lender at the time of execution of this Agreement.

      

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

      
         

      

      
        
          	
                   
      

                	
                  3.3

                	
                  Interest

                

        

      

      
         

        The
Borrower will pay interest at a rate of 10% per annum to the Lender on the
amount of Principal outstanding both before and after maturity, default and
judgment. Interest on the outstanding Principal amount shall accrue daily and
compound annually. Additionally, the repayment of accrued interest will paid on
a monthly basis (on the 12th of each
month), with the first payment being made 3 months after the execution of the
Agreement.

      

      
         

        
          	
                    

                	
                  3.4

                	
                  Repayment of the
      Loan

                

        

      

      
         

        The
entire Principal and the final interest payment payable pursuant to this
Agreement shall be due and payable on March 12, 2009.

      

      
         

        
          	
                   
      

                	
                  3.5

                	
                  Prepayment
      of Loan

                

        

      

      
         

        Provided
that the Bonus as set forth in section 5 below, the Borrower may prepay the
Principal and the interest outstanding under the Loan at any time without
penalty, bonus or charges.

      

      
         

         

        
          	
                  4.

                	
                  SECURITY
      FOR THE LOAN

                

        

      

      
         

        
          	
                   
      

                	
                  4.1

                	
                  Lender's
      Security

                

        

      

      
         

        On the
execution of this Agreement the Borrower will execute and deliver to the Lender
the Note, the form of which is attached hereto as Schedule A, evidencing the
Borrower's obligations and covenants under this Loan
Agreement.

      

      
         

        
          	
                   
      

                	
                  4.2

                	
                  Costs,
      Charges and Expenses

                

        

      

      
         

        The
Borrower will assume and pay all costs, commission, charges and expenses,
including reasonable solicitors' costs, charges and expenses on a special costs
basis, which may be incurred by the Lender in respect of the enforcement of this
Agreement or the Lender's Security or which may be incurred by the Lender in
respect of any proceedings taken or things done by the Lender in connection
therewith to collect, protect, realize or enforce the Lender's Security and the
Borrower consents to such costs, charges and expenses being charged and fixed on
a lump sum basis in accordance with the Legal Profession Act (British
Columbia).

      

      
         

         

        
          	
                  5.

                	
                  BONUS

                

        

      

      
         

        On the
execution of this Agreement, the Borrower agrees to immediately issue to the
Lender, as a bonus (the "Bonus"), 1,000,000 Rule 144 common shares in the share
capital of the Borrower, at a deemed price of $0.25. In conjunction with the
issuance of the common shares to Lender, Lender confirms that he is as an
Accredited Investor as that term is defined in Regulation D adopted pursuant to
the Securities Act of 1933, as amended. Specifically, the Lender is a natural
person whose individual net worth, or joint net worth with that person's spouse,
at the time of his receipt of common shares exceeds
SI,000,000.

      

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

      
         

      

      
        
          	
                  6.

                	
                  REPRESENTATIONS
      AND WARRANTIES

                

        

      

      
         

        
          	
                   
      

                	
                  6.1

                	
                  Representations
      and Warranties

                

        

      

      
         

        The
Borrower represents and warrants to the Lender that:

      

      
         

        
          	
                	
                  (a)

                	
                  the
      Borrower is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of
Nevada;

                

        

      

      
         

        
          	
                	
                  (b)

                	
                  the
      Borrower has all requisite corporate power and authority to enter into
      this Agreement and to carry out the obligations contemplated herein and
      therein;

                

        

      

      
         

        
          	
                	
                  (c)

                	
                  this
      Agreement has been duly and validly authorized, executed and delivered by
      the Borrower and are valid obligations of it;
  and

                

        

      

      
         

        
          	
                	
                  (d)

                	
                  no
      Event of Default and no event which, with the giving of notice or lapse of
      time would become an Event of Default, has occurred or is
      continuing.

                

        

      

      
         

        
          	
                   
      

                	
                  6.2

                	
                  Survival
      of Representations and
Warranties

                

        

      

      
         

        All
representations and warranties made herein will survive the delivery of this
Agreement to the Lender and no investigation at any time made by or on behalf of
the Lender shall diminish in any respect whatsoever its rights to rely on those
representations and warranties. All statements contained in any certificate or
other instrument delivered by or on behalf of the Borrower under or pursuant to
this Agreement will constitute representations and warranties made by the
Borrower thereunder.

      

      
         

         

        
          	
                  7.

                	
                  COVENANTS
      OF THE BORROWER

                

        

      

      
         

        The
Borrower covenants and agrees with the Lender that, at all times during the
currency of this Agreement, it will:

      

      
         

        
          	
                	
                  (a)

                	
                  pay
      the principal sum, interest and all other monies required to be paid to
      the Lender pursuant to this Agreement in the manner set forth
      herein;

                

        

      

      
         

        
          	
                	
                  (b)

                	
                  duly
      observe and perform each and every of its covenants and agreements set
      forth in this Agreement; and

                

        

      

      
         

        
          	
                	
                  (c) 

                	
                  provide
      the Lender with immediate notice of any Event of
  Default.

                

        

      

      
        

         

        
          	
                  8.

                	
                  EVENT
      OF DEFAULT

                

        

      

      
         

        
          	
                   
      

                	
                  8.1

                	
                  Definition
      of Event of Default

                

        

      

      
         

        The
principal balance of the Loan, costs and any other money owing to the Lender
under this Agreement will immediately become payable upon demand by the Lender
or, unless otherwise waived in writing by the Lender, in any of the following
events:

      

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

      
         

      

      
        
          	
                   
      

                	
                  (a)

                	
                  if
      the Borrower defaults in any payment when due under this
      Agreement;

                

        

      

      
         

        
          	
                   
      

                	
                  (b)

                	
                  if
      the Borrower makes a general assignment for the benefit of its creditors,
      or if any order is made or an effective resolution is passed for the
      winding-up, merger or amalgamation of the Borrower or if the Borrower is
      declared bankrupt or if a custodian or receiver be appointed for the
      Borrower under the applicable bankruptcy or insolvency legislation, or if
      a compromise or arrangement is proposed by the Borrower to its creditors
      or any class of its creditors, or if a receiver or other officer with like
      powers is appointed for the Borrower;
or

                

        

      

      
         

        
          	
                   
      

                	
                  (c)

                	
                  if
      the Borrower defaults in observing or performing any other covenant or
      agreement of this Agreement on its part to be observed or performed and
      such default has continued for a period of seven days after notice in
      writing has been given by the Lender to the Borrower specifying the
      default,

                

        

      

      
         

         

        
          	
                  8.

                	
                  ASSIGNMENT

                

        

      

      
         

        
          	
                  8.1

                	
                  Assignment
      of Borrower

                

        

      

      
         

        The
Borrower may not assign this Agreement or its interest herein or any part hereof
except with the prior written consent of the Lender.

      

      
        

         

        
          	
                  9.

                	
                  GENERAL

                

        

      

      
         

        
          	
                  9.1

                	
                  Waiver
      or Modification

                

        

      

      
         

        No
failure on the part of the Lender in exercising any power or right hereunder
will operate as a waiver of the Lender's power or right nor will any single or
partial exercise of such right or power preclude any other right or power
hereunder. No amendment, modification or waiver of any condition of this
Agreement or consent to any departure by the Borrower therefrom will be
effective unless it is in writing signed by the Lender. No notice to or demand
on the Borrower will entitle the Borrower to any other further notice or demand
in similar or other circumstances unless specifically provided for in this
Agreement.

      

      
         

        
          	
                  9.2

                	
                  Time

                

        

      

      
         

        Time is
of the essence of this Agreement.

         

      

      
        
          	
                  9.3

                	
                  Further
      Assurances

                

        

      

      
         

        The
parties to this Agreement will do, execute and deliver or will cause to be done,
executed and delivered all such further acts, documents and things as may be
reasonably required for the purpose of giving effect to this
Agreement.

      

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

      
         

      

      
        
          	
                  10.

                	
                  NOTICES

                

        

      

      
         

        10.1                   Any
notice under this Agreement will be given in writing and may be sent by fax,
telex, telegram or may be delivered or mailed by prepaid post addressed to the
party to which notice is to be given at the address indicated above, or at
another address designated by that party in writing.

      

      
        

        10.2                   If
notice is sent by fax or is delivered, it will be deemed to have been given at
the time of transmission or delivery.

      

      
        

        10.3                   If
notice is mailed, it will be deemed to have been received 48 hours following the
date of mailing of the notice.

      

      
         

        10.4                   If
there is an interruption in normal mail service due to strike, labour unrest or
other cause at or before the time a notice is mailed the notice will be sent by
fax or will be delivered.

      

      
        

         

        [THE REST
OF THIS PAGE LEFT INTENTIONALLY BLANK]

      

      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

      
        
          	
                  11.

                	
                  AMENDMENTS

                

        

         

      

      
        This
Agreement may be amended waived discharged or terminated only by instrument in
writing signed by the party against whom enforcement of the amendment, waiver,
discharge or termination is sought.

      

      
         

        IN
WITNESS WHEREOF the Lender and the Borrower have executed and delivered this
Agreement.

         

        

      

      
        	
                SIGNED,
      SEALED AND DELIVERED by

              	
                )

              	 
      
	
                DAVID
      LYALL in the presence of:

              	
                )

              	 
      
	 
      	
                )

              	 
      
	
                Lorinne
      Elliot

              	
                )

              	 
      
	
                Name

              	
                )

              	 
      
	
                2100-400
      Burrard St.

              	
                )

              	 
      
	
                Vancouver,
      B.C.

              	
                )

              	 
      
	
                V6C3A6

              	
                )

              	
                /s/
      David Lyall

              
	
                
                  Address

                

              	
                )

              	
                DAVID
      LYALL

              
	 
      	
                )

              	 
      
	
                Assistant

              	
                )

              	 
      
	
                Occupation

              	
                )

              	
                MARCH
      12, 2008

              

      

      
         

         

      

      
        	
                GULF
      WESTERN PETROLEUM CORPORATION

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                By:

              	/s/
      Donald L. Sytsma	 
      
	 
      	
                Authorized
      Signatory

              	 
      

      

      
        

          
            
               

            

            
              - 7
-

              
                

              

            

            
               

            

          

        

         

      

      
        SCHEDULE
"B"

      

      
        FORM
OF PROMISSORY NOTE

      

      
        PROMISSORY
NOTE

      

      
        

        
        

         

        
          	US$500,000 	
                  March 12,
      2008

                

        

         

                                                                              

      

      
        FOR VALUE
RECEIVED, GULF WESTERN
PETROLEUM CORPORATION (the "Borrower"), of 4801 Woodway Drive, Suite
306W, Houston Texas 77056, PROMISES TO PAY on demand to the order of DAVID LYALL, of 2000-400 Burrard
Street, Vancouver, B.C. V6C 3A6, the sum
of US$500,000 with
interest at 10% per annum accrued daily and compounded annually and payable
annually in arrears, both before and after the time payment is due and until
actual payment.

      

      
         

        The
Borrower waives presentment for payment, notice of protest and notice of
non-payment.

      

      
         

        The
Borrower may repay, at any time, all or any part of the US$500,000 without
notice, bonus or penalty.

      

      
         

        Signed as
of MARCH 12, 2008.

      

      
         

        GULF
WESTERN PETROLEUM CORPORATION.

      

       

       

      
        
          	By:	/s/ DOnald L.
      SytsmaUnassociated Document

     

    WARRANT

     

    THE
      SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY
      SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THIS WARRANT MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT.

     

    HOMELAND
      SECURITY CAPITAL CORPORATION

     

    Warrant
      To Purchase Common Stock

     

    
      	
              Warrant
                No.: ________

            	
              Number
                of Shares: ___________

            

    

     

    Date
      of
      Issuance: March __, 2008

     

    Homeland
      Security Capital Corporation, a Delaware corporation (the “Company”),
      hereby certifies that, for good and valuable consideration, the receipt and
      sufficiency of which are hereby acknowledged, ___________ (the “Holder”),
      the
      registered holder hereof or its permitted assigns, is entitled, subject to
      the
      terms set forth below, to purchase from the Company upon surrender of this
      Warrant, at any time or times on or after the date hereof, but not after
      11:59 P.M. Eastern Time on the Expiration Date (as defined herein)
      __________ (_________________) fully paid and nonassessable shares of Common
      Stock (as defined herein) of the Company (the “Warrant
      Shares”)
      at the
      exercise price per share provided in Section 1(b) below or as subsequently
      adjusted.

     

    Section
      1.

     

    (a) This
      Warrant is the common stock purchase warrant (the “Warrant”)
      issued
      pursuant to the Merger Agreement (as defined herein).

     

    (b) Definitions.
      The
      following words and terms as used in this Warrant shall have the following
      meanings:

     

    (i) “Approved
      Stock Plan”
means
      any employee benefit plan which has been approved by the Board of Directors
      of
      the Company, pursuant to which the Company’s securities may be issued to any
      employee, officer or director for services provided to the Company.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (ii) “Business
      Day”
means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      the City of New York are authorized or required by law to remain
      closed.

     

    (iii) “Closing
      Bid Price”
means
      the closing bid price of Common Stock as quoted on the Principal Market (as
      reported by Bloomberg Financial Markets (“Bloomberg”)
      through its “Volume at Price” function).

     

    (iv) “Common
      Stock”
means
      (i) the Company’s common stock, par value $0.001 per share, and
      (ii) any capital stock into which such Common Stock shall have been changed
      or any capital stock resulting from a reclassification of such Common
      Stock.

     

    (v) “Event
      of Default”
means
      an event of default under the Merger Agreement dated the date
      hereof.

     

    (vi) “Expiration
      Date”
means
      the date five (5) years from the Issuance Date of this Warrant or, if such
      date
      falls on a Saturday, Sunday or other day on which banks are required or
      authorized to be closed in the City of New York or the State of New York or
      on
      which trading does not take place on the Principal Exchange or automated
      quotation system on which the Common Stock is traded (a “Holiday”),
      the
      next date that is not a Holiday.

     

    (vii) “Issuance
      Date”
means
      the date hereof. 

     

    (viii) “Merger
      Agreement”
means
      the Agreement and Plan of Merger and Stock Purchase Agreement, dated March
      13,
      2008, among the Company, HSCC Acquisition Corp., Safety & Ecology Holdings
      Corporation and the persons named therein.

     

    (ix) “Options”
means
      any rights, warrants or options to subscribe for or purchase Common Stock or
      Convertible Securities.

     

    (x) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (xi) “Principal
      Market”
means
      the New York Stock Exchange, the American Stock Exchange, the Nasdaq National
      Market, the Nasdaq SmallCap Market, whichever is at the time the principal
      trading exchange or market for such security, or the over-the-counter market
      on
      the electronic bulletin board for such security as reported by Bloomberg or,
      if
      no bid or sale information is reported for such security by Bloomberg, then
      the
      average of the bid prices of each of the market makers for such security as
      reported in the “pink sheets” by the National Quotation Bureau,
      Inc.

     

    (xii) “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    (xiii) “Warrant”
means
      this Warrant and all Warrants issued in exchange, transfer or replacement
      thereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (xiv) “Warrant
      Exercise Price”
shall
      be $0.03 or as subsequently adjusted as provided in Section 8
      hereof.

     

    (xv) “Warrant
      Shares”
means
      the shares of Common Stock issuable at any time upon exercise of this
      Warrant.

     

    (c) Other
      Definitional Provisions.

     

    (i) Except
      as
      otherwise specified herein, all references herein (A) to the Company shall
      be deemed to include the Company’s successors and (B) to any applicable law
      defined or referred to herein shall be deemed references to such applicable
      law
      as the same may have been or may be amended or supplemented from time to
      time.

     

    (ii) When
      used
      in this Warrant, the words “herein”,
      “hereof”,
      and
“hereunder”
and
      words of similar import, shall refer to this Warrant as a whole and not to
      any
      provision of this Warrant, and the words “Section”,
      “Schedule”,
      and
“Exhibit”
shall
      refer to Sections of, and Schedules and Exhibits to, this Warrant unless
      otherwise specified.

     

    (iii) Whenever
      the context so requires, the neuter gender includes the masculine or feminine,
      and the singular number includes the plural, and vice versa.

     

    Section
      2. Exercise
      of Warrant.

     

    (a) Subject
      to the terms and conditions hereof, this Warrant may be exercised by the holder
      hereof then registered on the books of the Company, pro rata as hereinafter
      provided, at any time on any Business Day on or after the opening of business
      on
      such Business Day, commencing with the first day after the date hereof, and
      prior to 11:59 P.M. Eastern Time on the Expiration Date (i) by delivery of
      a written notice, in the form of the subscription notice attached as
Exhibit
      A
      hereto
      (the “Exercise
      Notice”),
      of
      such holder’s election to exercise this Warrant, which notice shall specify the
      number of Warrant Shares to be purchased, payment to the Company of an
      amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares
      being purchased, multiplied by the number of Warrant Shares (at the
      applicable Warrant Exercise Price) as to which this Warrant is being
      exercised (plus any applicable issue or transfer taxes) (the “Aggregate
      Exercise Price”)
      in
      cash or wire transfer of immediately available funds and the surrender of this
      Warrant (or an indemnification undertaking with respect to this Warrant in
      the
      case of its loss, theft or destruction) to a common carrier for overnight
      delivery to the Company as soon as practicable following such date
      (“Cash
      Basis”)
      or
      (ii) if at the time of exercise, the Warrant Shares are not subject to an
      effective registration statement or if an Event of Default has occurred, by
      delivering an Exercise Notice and in lieu of making payment of the Aggregate
      Exercise Price in cash or wire transfer, elect instead to receive upon such
      exercise the “Net Number” of shares of Common Stock determined according to the
      following formula (the “Cashless
      Exercise”):

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Net
      Number = (A
      x
      B) - (A x C)

                  B

     

    For
      purposes of the foregoing formula:

     

    A
      = the
      total number of Warrant Shares with respect to which this Warrant is then being
      exercised.

     

    B
      = the
      Closing Bid Price of the Common Stock on the date of exercise of the
      Warrant.

     

    C
      = the
      Warrant Exercise Price then in effect for the applicable Warrant Shares at
      the
      time of such exercise.

     

    In
      the
      event of any exercise of the rights represented by this Warrant in compliance
      with this Section 2, the Company shall on or before the fifth (5th)
      Business Day following the date of receipt of the Exercise Notice, the Aggregate
      Exercise Price and this Warrant (or an indemnification undertaking with respect
      to this Warrant in the case of its loss, theft or destruction) and the receipt
      of the representations of the holder specified in Section 6 hereof, if requested
      by the Company (the “Exercise
      Delivery Documents”),
      and
      if the Common Stock is DTC eligible, credit such aggregate number of shares
      of
      Common Stock to which the holder shall be entitled to the holder’s or its
      designee’s balance account with The Depository Trust Company; provided, however,
      if the holder who submitted the Exercise Notice requested physical delivery
      of
      any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible
      then the Company shall, on or before the fifth (5th)
      Business Day following receipt of the Exercise Delivery Documents, issue and
      surrender to a common carrier for overnight delivery to the address specified
      in
      the Exercise Notice, a certificate, registered in the name of the holder, for
      the number of shares of Common Stock to which the holder shall be entitled
      pursuant to such request. Upon delivery of the Exercise Notice and Aggregate
      Exercise Price referred to in clause (i) or (ii) above the holder of this
      Warrant shall be deemed for all corporate purposes to have become the holder
      of
      record of the Warrant Shares with respect to which this Warrant has been
      exercised. In the case of a dispute as to the determination of the Warrant
      Exercise Price, the Closing Bid Price or the arithmetic calculation of the
      Warrant Shares, the Company shall promptly issue to the holder the number of
      Warrant Shares that is not disputed and shall submit the disputed determinations
      or arithmetic calculations to the holder via facsimile within one (1) Business
      Day of receipt of the holder’s Exercise Notice.

     

    (b) If
      the
      holder and the Company are unable to agree upon the determination of the Warrant
      Exercise Price or arithmetic calculation of the Warrant Shares within one (1)
      day of such disputed determination or arithmetic calculation being submitted
      to
      the holder, then the Company shall immediately submit via facsimile (i) the
      disputed determination of the Warrant Exercise Price or the Closing Bid Price
      to
      an independent, reputable investment banking firm or (ii) the disputed
      arithmetic calculation of the Warrant Shares to its independent, outside
      accountant. The Company shall cause the investment banking firm or the
      accountant, as the case may be, to perform the determinations or calculations
      and notify the Company and the holder of the results no later than forty-eight
      (48) hours from the time it receives the disputed determinations or
      calculations. Such investment banking firm’s or accountant’s determination or
      calculation, as the case may be, shall be deemed conclusive absent manifest
      error.

     

    (c) Unless
      the rights represented by this Warrant shall have expired or shall have been
      fully exercised, the Company shall, as soon as practicable and in no event
      later
      than five (5) Business Days after any exercise and at its own expense, issue
      a
      new Warrant identical in all respects to this Warrant exercised except it shall
      represent rights to purchase the number of Warrant Shares purchasable
      immediately prior to such exercise under this Warrant exercised, less the number
      of Warrant Shares with respect to which such Warrant is exercised.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) No
      fractional Warrant Shares are to be issued upon any pro rata exercise of this
      Warrant, but rather the number of Warrant Shares issued upon such exercise
      of
      this Warrant shall be rounded up or down to the nearest whole
      number.

     

    (e) If
      the
      Company or its Transfer Agent shall fail for any reason or for no reason to
      issue to the holder within ten (10) days of receipt of the Exercise
      Delivery Documents, a certificate for the number of Warrant Shares to which
      the
      holder is entitled or to credit the holder’s balance account with The Depository
      Trust Company for such number of Warrant Shares to which the holder is entitled
      upon the holder’s exercise of this Warrant, the Company shall, in addition to
      any other remedies under this Warrant or otherwise available to such holder,
      pay
      as additional damages in cash to such holder on each day the issuance of such
      certificate for Warrant Shares is not timely effected an amount equal to 0.025%
      of the product of (A) the sum of the number of Warrant Shares not issued to
      the
      holder on a timely basis and to which the holder is entitled, and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Common Stock
      to
      the holder without violating this Section 2.

     

    (f) If
      within
      ten (10) days after the Company’s receipt of the Exercise Delivery Documents,
      the Company fails to deliver a new Warrant to the holder for the number of
      Warrant Shares to which such holder is entitled pursuant to Section 2 hereof,
      then, in addition to any other available remedies under this Warrant, or
      otherwise available to such holder, the Company shall pay as additional damages
      in cash to such holder on each day after such tenth (10th)
      day
      that such delivery of such new Warrant is not timely effected in an amount
      equal
      to 0.25% of the product of (A) the number of Warrant Shares represented by
      the portion of this Warrant which is not being exercised and (B) the
      Closing Bid Price of the Common Stock for the trading day immediately preceding
      the last possible date which the Company could have issued such Warrant to
      the
      holder without violating this Section 2.

     

    Section
      3. Covenants
      as to Common Stock.
      The
      Company hereby covenants and agrees as follows:

     

    (a) This
      Warrant is, and any Warrants issued in substitution for or replacement of this
      Warrant will upon issuance be, duly authorized and validly issued.

     

    (b) All
      Warrant Shares which may be issued upon the exercise of the rights represented
      by this Warrant will, upon issuance, be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof.

     

    (c) During
      the period within which the rights represented by this Warrant may be exercised,
      the Company will at all times have authorized and reserved at least one hundred
      percent (100%) of the number of shares of Common Stock needed to provide for
      the
      exercise of the rights then represented by this Warrant and the par value of
      said shares will at all times be less than or equal to the applicable Warrant
      Exercise Price. If at any time the Company does not have a sufficient number
      of
      shares of Common Stock authorized and available, then the Company shall call
      and
      hold a special meeting of its stockholders within sixty (60) days of that
      time for the sole purpose of increasing the number of authorized shares of
      Common Stock.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d) If
      at any
      time after the date hereof the Company shall file a registration statement,
      the
      Company shall include the Warrant Shares issuable to the holder, pursuant to
      the
      terms of this Warrant and shall maintain, so long as any other shares of Common
      Stock shall be so listed, such listing of all Warrant Shares from time to time
      issuable upon the exercise of this Warrant; and the Company shall so list on
      each national securities exchange or automated quotation system, as the case
      may
      be, and shall maintain such listing of, any other shares of capital stock of
      the
      Company issuable upon the exercise of this Warrant if and so long as any shares
      of the same class shall be listed on such national securities exchange or
      automated quotation system.

     

    (e) The
      Company will not, by amendment of its Certificate of Incorporation or through
      any reorganization, transfer of assets, consolidation, merger, dissolution,
      issue or sale of securities, or any other voluntary action, avoid or seek to
      avoid the observance or performance of any of the terms to be observed or
      performed by it hereunder, but will at all times in good faith assist in the
      carrying out of all the provisions of this Warrant and in the taking of all
      such
      action as may reasonably be requested by the holder of this Warrant in order
      to
      protect the exercise privilege of the holder of this Warrant against dilution
      or
      other impairment, consistent with the tenor and purpose of this Warrant. The
      Company will not increase the par value of any shares of Common Stock receivable
      upon the exercise of this Warrant above the Warrant Exercise Price then in
      effect, and (ii) will take all such actions as may be necessary or
      appropriate in order that the Company may validly and legally issue fully paid
      and nonassessable shares of Common Stock upon the exercise of this
      Warrant.

     

    (f) This
      Warrant will be binding upon any entity succeeding to the Company by merger,
      consolidation or acquisition of all or substantially all of the Company’s
      assets.

     

    Section
      4. Taxes.
      The
      Company shall pay any and all taxes, except any applicable withholding, which
      may be payable with respect to the issuance and delivery of Warrant Shares
      upon
      exercise of this Warrant.

     

    Section
      5. Warrant
      Holder Not Deemed a Stockholder.
      Except
      as otherwise specifically provided herein, no holder, as such, of this Warrant
      shall be entitled to vote or receive dividends or be deemed the holder of shares
      of capital stock of the Company for any purpose, nor shall anything contained
      in
      this Warrant be construed to confer upon the holder hereof, as such, any of
      the
      rights of a stockholder of the Company or any right to vote, give or withhold
      consent to any corporate action (whether any reorganization, issue of stock,
      reclassification of stock, consolidation, merger, conveyance or otherwise),
      receive notice of meetings, receive dividends or subscription rights, or
      otherwise, prior to the issuance to the holder of this Warrant of the Warrant
      Shares which he or she is then entitled to receive upon the due exercise of
      this
      Warrant. In addition, nothing contained in this Warrant shall be construed
      as
      imposing any liabilities on such holder to purchase any securities (upon
      exercise of this Warrant or otherwise) or as a stockholder of the Company,
      whether such liabilities are asserted by the Company or by creditors of the
      Company. Notwithstanding this Section 5, the Company will provide the holder
      of
      this Warrant with copies of the same notices and other information given to
      the
      stockholders of the Company generally, contemporaneously with the giving thereof
      to the stockholders.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Section
      6. Representations
      of Holder.
      The
      holder of this Warrant, by the acceptance hereof, represents that it is
      acquiring this Warrant and the Warrant Shares for its own account for investment
      only and not with a view towards, or for resale in connection with, the public
      sale or distribution of this Warrant or the Warrant Shares, except pursuant
      to
      sales registered or exempted under the Securities Act; provided, however, that
      by making the representations herein, the holder does not agree to hold this
      Warrant or any of the Warrant Shares for any minimum or other specific term
      and
      reserves the right to dispose of this Warrant and the Warrant Shares at any
      time
      in accordance with or pursuant to a registration statement or an exemption
      under
      the Securities Act. The holder of this Warrant further represents, by acceptance
      hereof, that, as of this date, such holder is an “accredited investor” as such
      term is defined in Rule 501(a)(1) of Regulation D promulgated by the
      Securities and Exchange Commission under the Securities Act (an “Accredited
      Investor”).
      Upon
      exercise of this Warrant the holder shall, if requested by the Company, confirm
      in writing, in a form satisfactory to the Company, that the Warrant Shares
      so
      purchased are being acquired solely for the holder’s own account and not as a
      nominee for any other party, for investment, and not with a view toward
      distribution or resale and that such holder is an Accredited Investor.

     

    Section
      7. Ownership
      and Transfer.
      The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee. The Company may treat the person in whose
      name any Warrant is registered on the register as the owner and holder thereof
      for all purposes, notwithstanding any notice to the contrary, but in all events
      recognizing any transfers made in accordance with the terms of this
      Warrant.

     

    Section
      8. Adjustment
      of Warrant Exercise Price and Number of Shares.
      The
      Warrant Exercise Price and the number of shares of Common Stock issuable upon
      exercise of this Warrant shall be adjusted from time to time as
      follows:

     

    (a) Adjustment
      of Warrant Exercise Price upon Subdivision or Combination of Common
      Stock.
      If the
      Company at any time after the date of issuance of this Warrant subdivides (by
      any stock split, stock dividend, recapitalization or otherwise) one or more
      classes of its outstanding shares of Common Stock into a greater number of
      shares, any Warrant Exercise Price in effect immediately prior to such
      subdivision will be proportionately reduced and the number of shares of Common
      Stock obtainable upon exercise of this Warrant will be proportionately
      increased. If the Company at any time after the date of issuance of this Warrant
      combines (by combination, reverse stock split or otherwise) one or more classes
      of its outstanding shares of Common Stock into a smaller number of shares,
      any
      Warrant Exercise Price in effect immediately prior to such combination will
      be
      proportionately increased and the number of Warrant Shares issuable upon
      exercise of this Warrant will be proportionately decreased. Any adjustment
      under
      this Section 8(a) shall become effective at the close of business on the
      date the subdivision or combination becomes effective.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b) Distribution
      of Assets.
      If the
      Company shall declare or make any dividend or other distribution of its assets
      (or rights to acquire its assets) to holders of Common Stock, by way of return
      of capital or otherwise (including, without limitation, any distribution of
      cash, stock or other securities, property or options by way of a dividend,
      spin
      off, reclassification, corporate rearrangement or other similar transaction)
      (a
“Distribution”),
      at
      any time after the issuance of this Warrant, then, in each such
      case:

     

    (i) any
      Warrant Exercise Price in effect immediately prior to the close of business
      on
      the record date fixed for the determination of holders of Common Stock
      entitled to
      receive the Distribution shall be reduced, effective as of the close of business
      on such record date, to a price determined by multiplying such Warrant Exercise
      Price by a fraction of which (A) the numerator shall be the Closing Sale Price
      of the Common Stock on the trading day immediately preceding such record date
      minus the value of the Distribution (as determined in good faith by the
      Company’s Board of Directors) applicable to one share of Common Stock, and (B)
      the denominator shall be the Closing Sale Price of the Common Stock on the
      trading day immediately preceding such record date; and

     

    (ii) either
      (A) the number of Warrant Shares obtainable upon exercise of this Warrant shall
      be increased to a number of shares equal to the number of shares of Common
      Stock
      obtainable immediately prior to the close of business on the record date fixed
      for the determination of holders of Common Stock entitled to receive the
      Distribution multiplied by the reciprocal of the fraction set forth in the
      immediately preceding clause (i), or (B) in the event that the Distribution
      is
      of common stock of a company whose common stock is traded on a national
      securities exchange or a national automated quotation system, then the holder
      of
      this Warrant shall receive an additional warrant to purchase Common Stock,
      the
      terms of which shall be identical to those of this Warrant, except that such
      warrant shall be exercisable into the amount of the assets that would have
      been
      payable to the holder of this Warrant pursuant to the Distribution had the
      holder exercised this Warrant immediately prior to such record date and with
      an
      exercise price equal to the amount by which the exercise price of this Warrant
      was decreased with respect to the Distribution pursuant to the terms of the
      immediately preceding clause (i).

     

    (c) Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 8
      but not expressly provided for by such provisions (including, without
      limitation, the granting of stock appreciation rights, phantom stock rights
      or
      other rights with equity features), then the Company’s Board of Directors will
      make an appropriate adjustment in the Warrant Exercise Price and the number
      of
      shares of Common Stock obtainable upon exercise of this Warrant so as to protect
      the rights of the holders of the Warrants; provided, except as set forth in
      Section 8(c), that no such adjustment pursuant to this Section 8(c) will
      increase the Warrant Exercise Price or decrease the number of shares of Common
      Stock obtainable as otherwise determined pursuant to this Section
      8.

     

    (d) Notices.

     

    (i) Immediately
      upon any adjustment of the Warrant Exercise Price, the Company will give written
      notice thereof to the holder of this Warrant, setting forth in reasonable
      detail, and certifying, the calculation of such adjustment.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Company will give written notice to the holder of this Warrant at least ten
      (10)
      days prior to the date on which the Company closes its books or takes a record
      (A) with respect to any dividend or distribution upon the Common Stock,
      (B) with respect to any pro rata subscription offer to holders of Common
      Stock or (C) for determining rights to vote with respect to any Organic
      Change (as defined below), dissolution or liquidation, provided that such
      information shall be made known to the public prior to or in conjunction with
      such notice being provided to such holder.

     

    (iii) The
      Company will also give written notice to the holder of this Warrant at least
      ten
      (10) days prior to the date on which any Organic Change, dissolution or
      liquidation will take place, provided that such information shall be made known
      to the public prior to or in conjunction with such notice being provided to
      such
      holder.

     

    Section
      9. Purchase
      Rights; Reorganization, Reclassification, Consolidation, Merger or
      Sale.

     

    (a) In
      addition to any adjustments pursuant to Section 8 above, if at any time the
      Company grants, issues or sells any Options, Convertible Securities or rights
      to
      purchase stock, warrants, securities or other property pro rata to the record
      holders of any class of Common Stock (the “Purchase
      Rights”),
      then
      the holder of this Warrant will be entitled to acquire, upon the terms
      applicable to such Purchase Rights, the aggregate Purchase Rights which such
      holder could have acquired if such holder had held the number of shares of
      Common Stock acquirable upon complete exercise of this Warrant immediately
      before the date on which a record is taken for the grant, issuance or sale
      of
      such Purchase Rights, or, if no such record is taken, the date as of which
      the
      record holders of Common Stock are to be determined for the grant, issue or
      sale
      of such Purchase Rights.

     

    (b) Any
      recapitalization, reorganization, reclassification, consolidation, merger,
      sale
      of all or substantially all of the Company’s assets to another Person or other
      transaction in each case which is effected in such a way that holders of Common
      Stock are entitled to receive (either directly or upon subsequent liquidation)
      stock, securities or assets with respect to or in exchange for Common Stock
      is
      referred to herein as an “Organic
      Change.”
Prior
      to the consummation of any (i) sale of all or substantially all of the Company’s
      assets to an acquiring Person or (ii) other Organic Change following which
      the
      Company is not a surviving entity, the Company will secure from the Person
      purchasing such assets or the successor resulting from such Organic Change
      (in
      each case, the “Acquiring
      Entity”)
      a
      written agreement (in form and substance satisfactory to the holders of Warrants
      representing at least two-thirds (iii) of the Warrant Shares issuable upon
      exercise of the Warrants then outstanding) to deliver to each holder of Warrants
      in exchange for such Warrants, a security of the Acquiring Entity evidenced
      by a
      written instrument substantially similar in form and substance to this Warrant
      and satisfactory to the holders of the Warrants (including an adjusted warrant
      exercise price equal to the value for the Common Stock reflected by the terms
      of
      such consolidation, merger or sale, and exercisable for a corresponding number
      of shares of Common Stock acquirable and receivable upon exercise of the
      Warrants without regard to any limitations on exercise, if the value so
      reflected is less than any Applicable Warrant Exercise Price immediately prior
      to such consolidation, merger or sale). Prior to the consummation of any other
      Organic Change, the Company shall make appropriate provision (in form and
      substance satisfactory to the holders of Warrants representing a
      majority of
      the
      Warrant Shares issuable upon exercise of the Warrants then outstanding) to
      insure that each of the holders of the Warrants will thereafter have the right
      to acquire and receive in lieu of or in addition to (as the case may be) the
      Warrant Shares immediately theretofore issuable and receivable upon the exercise
      of such holder’s Warrants (without regard to any limitations on exercise),
      such shares of stock, securities or assets that would have been issued or
      payable in such Organic Change with respect to or in exchange for the number
      of
      Warrant Shares which would have been issuable and receivable upon the exercise
      of such holder’s Warrant as of the date of such Organic Change (without taking
      into account any limitations or restrictions on the exercisability of this
      Warrant).

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    Section
      10. Lost,
      Stolen, Mutilated or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company shall promptly,
      on
      receipt of an indemnification undertaking (or, in the case of a mutilated
      Warrant, the Warrant), issue a new Warrant of like denomination and tenor as
      this Warrant so lost, stolen, mutilated or destroyed.

     

    Section
      11. Notice.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Warrant must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally;
      (ii) upon receipt, when sent by facsimile (provided confirmation of receipt
      is received by the sending party transmission is mechanically or electronically
      generated and kept on file by the sending party); or (iii) one Business Day
      after deposit with a nationally recognized overnight delivery service, in each
      case properly addressed to the party to receive the same. The addresses and
      facsimile numbers for such communications shall be:

     

    
      	
              If
                to the Company, to:

            	
              Homeland
                Security Capital Corporation

            
	 	
              1005
                N. Glebe Road, Ste. 550

            
	 	
              Arlington,
                Virginia 22201

            
	 	
              Attention: C.
                Thomas McMillen

            
	 	
              Telephone: (703)
                528-7073

            
	 	
              Facsimile: (703)
                528 0956

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Preston Gates Ellis, LLP

            
	 	
              200
                South Biscayne Boulevard, Suite 2000

            
	 	
              Miami,
                Florida 33131

            
	 	
              Attention: Martin
                T. Schrier

            
	 	
              Telephone: (305)
                539-3375

            
	 	
              Facsimile: (305)
                358-7095

            

    

    

    If
      to a
      holder of this Warrant, to it at the address and facsimile number provided
      to
      Safety & Ecology Holding Corporation for its book and records, or at such
      other address and facsimile as shall be delivered to the Company upon the
      issuance or transfer of this Warrant. Each party shall provide five days’ prior
      written notice to the other party of any change in address or facsimile number.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, facsimile, waiver or other communication, (or (B) provided by a
      nationally recognized overnight delivery service shall be rebuttable evidence
      of
      personal service, receipt by facsimile or receipt from a nationally recognized
      overnight delivery service in accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Section
      12. Date.
      The
      date of this Warrant is set forth on page 1 hereof. This Warrant, in all
      events, shall be wholly void and of no effect after the close of business on
      the
      Expiration Date.

     

    Section
      13. Amendment
      and Waiver.
      Except
      as otherwise provided herein, the provisions of the Warrants may be amended
      and
      the Company may take any action herein prohibited, or omit to perform any act
      herein required to be performed by it, only if the Company has obtained the
      written consent of the holders of Warrants representing at least two-thirds
      of
      the Warrant Shares issuable upon exercise of the Warrants then outstanding;
      provided that, except for Section 8(a), no such action may increase the Warrant
      Exercise Price or decrease the number of shares or class of stock obtainable
      upon exercise of any Warrant without the written consent of the holder of such
      Warrant.

     

    Section
      14. Descriptive
      Headings; Governing Law.
      The
      descriptive headings of the several sections and paragraphs of this Warrant
      are
      inserted for convenience only and do not constitute a part of this Warrant.
      The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Company and its stockholders, as well as all other
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of
      Delaware, without giving effect to any choice of law or conflict of law
      provision or rule that would cause the application of the laws of any
      jurisdictions other than the State of Delaware. Each party hereby irrevocably
      submits to the exclusive jurisdiction of the state and federal courts sitting
      in
      New Castle County and the United States District Court for the District of
      Delaware, for the adjudication of any dispute hereunder or in connection
      herewith or therewith, or with any transaction contemplated hereby or discussed
      herein, and hereby irrevocably waives, and agrees not to assert in any suit,
      action or proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is brought
      in an inconvenient forum or that the venue of such suit, action or proceeding
      is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such notices to it
      under
      this Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by
      law.

     

    Section
      15. Waiver
      of Jury Trial.
      AS A
      MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
      PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
      RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
      ASSOCIATED WITH THIS TRANSACTION.

     

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Warrant to be signed as of the date first set forth
      above.

     

    
      	 	
              HOMELAND
                SECURITY CAPITAL CORPORATION

            
	 	 
	 	
              By:      

            
	 	
              
                

              

              Name: C.
                Thomas McMillen

            
	 	
              Title: Chief
                Executive Officer

            

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A TO WARRANT

     

    EXERCISE
      NOTICE

     

    TO
      BE EXECUTED 

    BY
      THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

     

    HOMELAND
      SECURITY CAPITAL CORPORATION

     

    The
      undersigned holder hereby exercises the right to purchase ______________ of
      the
      shares of Common Stock (“Warrant
      Shares”)
      of
      Homeland Security Capital Corporation (the “Company”),
      evidenced by the attached Warrant (the “Warrant”).
      Capitalized terms used herein and not otherwise defined shall have the
      respective meanings set forth in the Warrant.

     

    Specify
      Method of exercise by check mark:

     

    1.
      ___ Cash
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      The
      holder shall pay the Aggregate Exercise Price of $______________ to the Company
      in accordance with the terms of the Warrant.

     

    (b)
      Delivery
      of Warrant Shares.
      The
      Company shall deliver to the holder ________ Warrant Shares in accordance with
      the terms of the Warrant.

     

    2.
      ___ Cashless
      Exercise

     

    (a)
      Payment
      of Warrant Exercise Price.
      In lieu
      of making payment of the Aggregate Exercise Price, the holder elects to receive
      upon such exercise the Net Number of shares of Common Stock determined in
      accordance with the terms of the Warrant.

     

    (b)
      Delivery
      of Warrant Shares.
      The
      Company shall deliver to the holder ________ Warrant Shares in accordance with
      the terms of the Warrant.

     

    Date:
      _______________ __, ______

     

    Name
      of
      Registered Holder

     

    
      
        	
                By:

              	 	 
	
                Name:

              	 	 
	
                Title:

              	 	 

      
    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B TO WARRANT

     

    FORM
      OF WARRANT POWER

     

    FOR
      VALUE
      RECEIVED, the undersigned does hereby assign and transfer to ________________,
      Federal Identification No. __________, a warrant to purchase ____________
      shares of the capital stock of Homeland Security Capital Corporation represented
      by warrant certificate no. _____, standing in the name of the undersigned
      on the books of said corporation. The undersigned does hereby irrevocably
      constitute and appoint ______________, attorney to transfer the warrants of
      said
      corporation, with full power of substitution in the premises.

     

    
      	
              Dated:     

            	
            	 
	
              
                

              

            	
            	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

    

    

    
      
        
        

      

      
        14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]