Document:

exv10w36

 

EXHIBIT 10.36

 

THIS SECURITY HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER
HEREOF, BY ACCEPTING THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY
MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED BY SUCH HOLDER OTHER THAN (1) TO
THE COMPANY, (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND IN ACCORDANCE WITH ANY APPLICABLE LAWS OF ANY STATE OF THE UNITED STATES, (3) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144, IF
APPLICABLE, UNDER THE SECURITIES ACT OR (4) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT BUT IS IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AND IN RELATION TO WHICH THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION TO SUCH
EFFECT FROM COUNSEL OF RECOGNISED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY
PRIOR TO SUCH OFFER, SALE, PLEDGE OR TRANSFER

Warrant Number: W03-2005-1000

Warrant exercisable for the purchase of 824,700 shares of Common Stock

GLOBAL SECURE CORP.

WARRANT CERTIFICATE

     This Warrant certifies that for value received in consideration for services rendered Sky
Capital LLC (“Holder”) is entitled to purchase, at any time on or before the Expiration Date
(hereinafter defined), EIGHT HUNDRED TWENTY-FOUR THOUSAND SEVEN HUNDRED (824,700) fully paid and
non-assessable shares of Common Stock, $0.0001 par value (“Common Stock”) of Global Secure Corp., a
Delaware corporation (the “Company”), at a purchase price of $1.50 per share of Common Stock in
lawful money of the United States of America in cash or by certified or cashier’s check or a
combination of cash and certified or cashier’s check, subject to adjustment as hereinafter
provided.

                    1.      Warrants; Purchase Price

     The purchase price payable upon exercise of this Warrant shall initially be $1.50 per share of
Common Stock, subject to adjustment as hereinafter provided (the “Purchase Price”). The Purchase
Price and number of shares of Common Stock issuable upon exercise of this Warrant are subject to
adjustment as provided in Article 6.

                    2.      Exercise; Expiration Date

                    2.1     This Warrant is exercisable, at the option of the Holder, at any time after issuance and
on or before the Expiration Date, upon surrender of this Warrant to the Company together with a
duly completed Notice of Exercise, in the form attached hereto as Exhibit A, and payment of
an amount equal to the Purchase Price times the number of shares of Common Stock to be purchased
upon exercise. In the case of exercise of less than all the shares of Common Stock represented by
this Warrant, the Company shall cancel this Warrant upon the surrender thereof and shall execute
and deliver a new Warrant for the balance of such shares of Common Stock.

 Sky
Capital LLC Warrant

 

 

                    2.2     In lieu of payment of the Purchase Price in cash, the Holder may elect to receive shares
of Common Stock equal to the value (as determined below) of this Warrant by surrender of this
Warrant together with the Notice of Exercise including notice of such election in which event the
Company shall issue to the Holder a number of shares of Common Stock computed using the following
formula:

	 	 	 	 	 
	

	 	 	 	X = Y(A-B)
	

	 	 	 	           A
	

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

	 	 	 	Y = the number of shares of Common Stock purchasable under this Warrant
	

	 	 	 	A = the Fair Market Value (as defined below) of a share of Common Stock
	

	 	 	 	B = Purchase Price

     “Fair Market Value” shall mean, as of any date, the fair market value of one share of Common
Stock determined as follows:

                    (a) If the Common Stock is listed on any established stock exchange or a national
market system, including without limitation the National Market of the National Association
of Securities Dealers, Inc. Automated Quotation System (“Nasdaq”), its Fair Market Value
shall be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange, or, if there is more than one such system or
exchange, the system or exchange with the greatest volume of trading in Common Stock for the
last market trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Company deems reliable, including the closing price of
the Common Stock on any foreign stock exchange on which it may be admitted for trading.

                    (b) If the Common Stock is quoted on the Nasdaq (but not on the National Market
thereof) or regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the high bid and low asked prices
for the Common Stock for the last market trading day prior to the time of determination, as
reported in The Wall Street Journal or such other source as the Committee deems reliable; or

                    (c) In the absence of an established market for the Common Stock, the Fair Market Value
thereof shall be determined in good faith by the Company’s Board of Directors.

                    2.3     The term “Expiration Date” shall mean 5:00 p.m. New York time on September 30, 2009, or if
such date shall in the State of New York be a holiday or a day on which banks are authorized to
close, then 5:00 p.m. New York time the next following date which in the State of New York is not a
holiday or a day on which banks are authorized to close.

                    3.      Registration and Transfer on Company Books

                    3.1     The Company shall maintain books for the registration and transfer of this Warrant and the
registration and transfer of the shares of Common Stock issued upon exercise of this Warrant. The
Company may, by written notice to the Holder, appoint an agent for the purpose of maintaining the
register referred to in this Section 3.1, issuing the Common Stock or other securities then
issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any
or all

 

 

Sky Capital LLC Warrant

2

 

of the foregoing. Thereafter, any such registration, issuance, exchange or replacement, as
the case may be, shall be made at the office of such agent.

                    3.2     Prior to due presentment for registration of transfer of this Warrant, or the shares of
Common Stock issued upon exercise of this Warrant, the Company may deem and treat the registered
Holder as the absolute owner thereof.

                    3.3     Neither this Warrant, nor the shares of Common Stock represented hereby, may be sold,
assigned, pledged or otherwise transferred by the Holder, other than to officers or directors of
the Holder, without the consent of the Company. Any transfer shall be made only if permitted by,
and made only in accordance with, all applicable federal and state securities laws. The Company
shall register upon its books any permitted transfer of the Warrant, upon surrender of same to the
Company with a written instrument of transfer duly executed by the registered Holder or by a duly
authorized attorney, and evidence of payment of all applicable transfer taxes, if any. Upon any
such registration of transfer, new Warrant (s) shall be issued to the transferee(s) and the
surrendered Warrant shall be canceled by the Company. A Warrant may also be exchanged, at the
option of the Holder, for new Warrant(s) representing in the aggregate the number of shares of
Common Stock evidenced by the Warrant surrendered.

                    4.     Reservation of Shares

     The Company covenants that it will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issue upon exercise of this Warrant, such number
of shares of Common Stock as shall then be issuable upon the exercise of the Warrant. The Company
covenants that all shares of Common Stock which shall be issuable upon exercise of the Warrant
shall be duly and validly issued and fully paid and non-assessable and free from all taxes, liens
and charges with respect to the issue thereof, and that upon issuance such shares shall be listed
on each national securities exchange, if any, on which the other shares of outstanding Common Stock
of the Company are then listed.

                    5.     Loss or Mutilation

Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, of
indemnity reasonably satisfactory to the Company, or, in the case of mutilation, upon surrender and
cancellation of the mutilated Warrant, the Company shall execute and deliver in lieu thereof a new
Warrant representing an equal number of shares of Common Stock underlying such Warrant.

                    6.     Adjustment of Purchase Price and Number of Shares Deliverable

                    The number of shares of Common Stock purchasable upon the exercise of this Warrant (such
shares being referred to in this Section 6 as the “Warrant Shares”) and the Purchase Price with
respect to the Warrant Shares shall be subject to adjustment as follows:

                    6.1

                    (a)     If the Company at any time divides the outstanding shares of its Common Stock into
a greater number of shares (whether pursuant to a stock split, stock dividend or otherwise),
and conversely, if the outstanding shares of its Common Stock are combined into a smaller
number of shares, the Purchase Price in effect immediately prior to such division or
combination

 

 

Sky Capital LLC Warrant

3

 

shall be proportionately adjusted to reflect the reduction or increase in the value of
each such Common Share.

                    (b)     If any capital reorganization or reclassification of the capital stock of the
Company or consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation shall be effected in such a
way that holders of the Company’s Common Stock shall be entitled to receive stock,
securities or assets with respect to or in exchange for such Common Stock, then, as a
condition of such reorganization, reclassification, consolidation, merger or sale, the
Holder shall have the right to purchase and receive upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of the Common Stock immediately
theretofore purchasable and receivable upon the exercise of the rights represented hereby,
such shares of stock, other securities or assets as would have been issued or delivered to
the Holder if Holder had exercised this Warrant and had received such shares of Common Stock
immediately prior to such reorganization, reclassification, consolidation, merger or sale.
The Company shall not effect any such consolidation, merger or sale unless prior to the
consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets shall assume by
written instrument executed and mailed to the Holder at the last address of the Holder
appearing on the books of the Company the obligation to deliver to the Holder such shares of
stock, securities or assets as, in accordance with the foregoing provisions, the Holder may
be entitled to purchase.

                    (c)     If the Company takes any other action, or if any other event occurs, which does not
come within the scope of the provisions of Section 6.1(a) or 6.1(b), but which should result
in an adjustment in the Purchase Price and/or the number of shares subject to this Warrant
in order to fairly protect the purchase rights of the Holder, an appropriate adjustment in
such purchase rights shall be made by the Company.

                    (d)     Upon each adjustment of the Purchase Price, the Holder shall thereafter be entitled
to purchase, at the Purchase Price resulting from such adjustment, the number of shares
obtained by multiplying the Purchase Price in effect immediately prior to such adjustment by
the number of shares purchasable pursuant hereto immediately prior to such adjustment and
dividing the product thereof by the Purchase Price resulting from such adjustment.

                    6.2     No adjustment in the number of Warrant Shares purchasable under this Warrant, or in the
Purchase Price with respect to the Warrant Shares, shall be required unless such adjustment would
require an increase or decrease of at least 1% in the number of Warrant Shares issuable upon the
exercise of this Warrant, or in the Purchase Price thereof; provided, however, that any adjustments
which by reason of this Section 6.3 are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All final results of adjustments to the number of
Warrant Shares and the Purchase Price thereof shall be rounded to the nearest one thousandth of a
share or the nearest cent, as the case may be. Anything in this Section 6 to the contrary
notwithstanding, the Company shall be entitled, but shall not be required, to make such changes in
the number of Warrant Shares purchasable upon the exercise of this Warrant, or in the Purchase
Price thereof, in addition to those required by such Section, as it in its discretion shall
determine to be advisable in order that any dividend or distribution in shares of Common Stock,
subdivision, reclassification or combination of shares of Common Stock, issuance of rights,
warrants or options to purchase Common Stock, or distribution of shares of stock other than Common
Stock, evidences of indebtedness or assets (other than distributions of cash out of retained
earnings) or convertible or exchangeable securities hereafter made by the Company to the

 

 

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4

 

holders of its Common Stock shall not result in any tax to the holders of its Common Stock or
securities convertible into Common Stock.

                    6.3     Whenever the number of Warrant Shares purchasable upon the exercise of this Warrant or the
Purchase Price of such Warrant Shares is adjusted, as herein provided, the Company shall mail to
the Holder, at the address of the Holder shown on the books of the Company, a notice of such
adjustment or adjustments, prepared and signed by the Chief Financial Officer or Secretary of the
Company, which sets forth the number of Warrant Shares purchasable upon the exercise of the Warrant
and the Purchase Price of such Warrant Shares after such adjustment, a brief statement of the facts
requiring such adjustment and the computation by which such adjustment was made.

                    6.4     The form of Warrant need not be changed because of any change in the Purchase Price or the
number of Warrant Shares issuable upon the exercise of the Warrant. The Company may, however, at
any time, in its sole discretion, make any change in the form of Warrant that it may deem
appropriate and that does not affect the substance thereof, and any Warrant thereafter issued or
countersigned, whether in exchange or substitution for an outstanding Warrant or otherwise, may be
in the form as so changed.

                    7.     Voluntary Adjustment by the Company.

     The Company may, at its option, at any time during the term of this Warrant, reduce the then
current Purchase Price to any amount deemed appropriate by the Board of Directors of the Company
and/or extend the date of the expiration of this Warrant.

                    8.     Fractional Shares and Warrants.

     Anything contained herein to the contrary notwithstanding, the Company shall not be required
to issue any fraction of a share of Common Stock in connection with the exercise of this Warrant.
This Warrant may not be exercised in such number as would result (except for the provisions of this
paragraph) in the issuance of a fraction of a share of Common Stock unless the Holder is exercising
this Warrant in its entirety. In such event, the Company shall, upon the exercise of this Warrant,
issue to the Holder the largest aggregate whole number of shares of Common Stock called for thereby
upon receipt of the Purchase Price for all of such shares of Common Stock and pay a sum in cash
equal to the remaining fraction of a share of Common Stock, multiplied by its Market Price Per
Share (as determined pursuant to Section 9.2 below) as of the last business day preceding the date
on which the Warrant is presented for exercise.

                    9.     Governing Law

     This Warrant shall be governed by and construed in accordance with the laws of the State of
New York without applicability of the doctrine of conflict of laws.

                    10.     Securities Law Compliance

     Notwithstanding anything to the contrary contained herein, Holder acknowledges and agrees that
neither this Warrant nor the Warrant Shares have been registered under the Securities Act of 1933,
as amended (“Act”) or the laws of any state. The Warrant Shares shall be issued upon exercise of
this Warrant only if an exemption from registration is available or the issuance of the Warrant
Shares by the Company has been registered under the Act. In connection with the exercise of this
Warrant, the Company, therefore, may require the Holder to provide the Company with evidence that
the Holder is an

 

 

Sky Capital LLC Warrant

5

 

accredited investor or otherwise meets the requirements to comply with an available exemption from
registration. The certificate evidencing the Warrant Shares shall bear an appropriate restrictive
legend and stop transfer instructions may be placed against such Warrant Shares.

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officers
thereunto duly authorized and its corporate seal to be affixed hereon, as of this 8th day of
August, 2005.

	 	 	 	 	 
	 	GLOBAL SECURE CORP.

 	 
	 	By:  	/s/ Craig R. Bandes
 	 
	 	 	Name:  	Craig R. Bandes 	 
	 	 	Title:  	Chief Executive Officer and President 	 
	 

 

 

Sky Capital LLC Warrant

6

 

EXHIBIT A

NOTICE OF EXERCISE

     The undersigned hereby irrevocably elects to exercise the Warrant accompanying this Notice of
Exercise, pursuant to Section 2 of the Warrant, to purchase          shares of Common Stock
underlying the accompanying Warrant, and herewith makes payment of the Purchase Price of such
shares in full.

     If payment of the Purchase Price is made pursuant to Section 2.2 of the Warrant, the number of
shares of Common Stock to be issued shall be determined according to Section 2.2 of the Warrant.

	 	 	 	 	 
	 	 	
 

 

Name of Holder
	 	 
	 	 	
 

 

Signature	 	 
	 	 	 	 	 
	 	 	
 

 
	 	 
	 	 	
 

 
	 	 
	 	 	
 

 
	 	 

7exv10w37

 

EXHIBIT 10.37

CONSULTING AGREEMENT

     CONSULTING AGREEMENT (this “Agreement”) dated as of February 23, 2004, between GlobalSecure
Holdings Ltd. (the “Company”), a Delaware corporation, and C. Thomas McMillen (‘‘Consultant”).

     WHEREAS, the Company, directly and through subsidiaries; provides goods and services in the
homeland security industry;

     WHEREAS, Consultant has been an employee of the Company and has experience in business and
particular knowledge of industries which the Company believes will be of value to it; and

     WHEREAS, the Company desires to retain Consultant to render consulting and advisory services
to the Company, and to the Company’s clients, on the terms and conditions set forth in this
Agreement, and Consultant desires to be retained by the Company on such terms and conditions.

     NOW, THEREFORE, in consideration of the premises, the mutual agreements herein set forth and
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties agree as follows:

     1. Retention of Consultant; Services to be Performed. The Company hereby retains
Consultant to render consulting and advisory services to the Company, including subsidiaries of the
Company (collectively, “Affiliated Companies”). Consultant hereby accepts such engagement and
agrees to perform such services for the Company upon the terms and conditions set forth in this
Agreement. During the Term (as defined in Section 2), Consultant shall devote such time,
attention, skill and energy to the business of the Company as may be reasonably required, in the
reasonable determination of Consultant, to perform the services required by this Agreement, and
shall assume and perform such duties to the best of his ability; provided however, that nothing
herein shall interfere with or prohibit Consultant from seeking or obtaining full time employment
with any person whatsoever; and further provided that Consultant shall not pursue any business
venture of any kind with any of the following companies: Boa Mauer Inc., Cappa Consulting or
Ashbritt Inc, or any successor of any of them (the “Targets”), provided, however, that Consultant
may through Washington Capital Advisors LLC or its affiliate Washington Capital Associates LLC
provide equity or debt financing to business entities
and pursue investment banking opportunities to companies other than the Targets. Consultant shall
report to the President of the Company.

     Consultant shall perform the services hereunder at such locations in the Washington, D.C.
area, or as otherwise may be agreed, as are reasonably necessary for Consultant to perform his
duties under this Agreement.

     In rendering services hereunder, Consultant shall be acting as an independent contractor and
not as an employee or agent of the Company. Nothing contained in this Agreement shall be construed
or applied to create a partnership. Consultant shall be responsible for the payment of all federal, state or local taxes payable
with respect to all amounts paid to consultant under this
Agreement; provided, however, that if the Company is determined to be liable for collection

 

 

and/or remittance of any such taxes, Consultant shall immediately reimburse the Company for
all such payments made by the Company.

     2. Term. Unless terminated at an earlier date in accordance with Section 6, this
Agreement shall commence as of the date first written above and shall terminate on February 22,
2005 (the “Term”). The Company also will pay for COBRA or its equivalent.

     3. Compensation. As compensation for Consultant’s services hereunder, the Company
will pay consultant $90,000 per annum, payable not less frequently than monthly on the last
business day of each month for the month then ended.

     4. Expenses. Subject to, in all cases, prior written approval of the President of the
Company, Consultant shall be reimbursed for all reasonable and necessary out-of-pocket expenses
that Consultant incurs in performing the services hereunder, including, without limitation,
reasonable travel expenses incurred by Consultant.

     5. Protection of Trade Secrets, Know-How and/or Other Confidential Information of the
Company.

          (a) Except as permitted or directed by the President of the Company, during the Term or at any
time thereafter Consultant shall not divulge, furnish or make accessible to anyone or use in any
way (other than in the ordinary course of the business of the Company) any confidential or secret
knowledge or information of the Company that Consultant has acquired or become acquainted with or
will acquire or become acquainted with during the Term or during engagement by the Company or any
affiliated companies prior to the Term, whether developed by Consultant or by others, concerning
any trade secrets, confidential or secret designs, processes, formulae, products or future
products, plans, devices or material (whether or not patented or patentable) directly or indirectly
useful in any aspect of the business of the Company, any customer or supplier lists of the Company,
any confidential or secret development or research work of the Company, or any other confidential
information or secret aspects of the business of the Company. Consultant acknowledges that the
above-described knowledge of information constitutes a unique and valuable asset of the Company
acquired at great time and expense by the Company and its predecessors, and that any disclosure or
other use of such knowledge or information other than for the sole benefit of the Company would be
wrongful and would cause irreparable harm to the Company. Both during and after the Term,
Consultant will refrain from any acts or omissions that would reduce the value of such knowledge or
information to the Company. The foregoing obligations of confidentiality, however, shall not apply
to any knowledge or information which is now published or which subsequently becomes generally
publicly known in the form in which it was obtained from the Company, other than as a direct or
indirect result of the breach of this Agreement by Consultant.

          (b) All know-how and trade secret information conceived or originated by Consultant which
arises out of the performance of the services hereunder or any related material or information
shall be the property of the Company, and all rights therein are hereby assigned to the Company.

2

 

          (c) Upon termination of this Agreement, Consultant shall deliver to the Company all property
that is in his possession and that is the Company’s property or relates to the Company’s business,
including, but not limited to records, notes, data, memoranda, software, electronic information,
models, equipment, and any copies of the same. Consultant shall permanently delete all of his
electronic data containing such property.

          (d) The Provisions of Section 5(a) shall be applicable to information acquired by Consultant
from the Affiliated Companies or by the Company from, Affiliated Companies and disclosed by the
Company to Consultant.

     6. Termination. Notwithstanding any contrary provision contained elsewhere in this
Agreement, this Agreement and the rights and obligations of the Company and Consultant hereunder
shall be terminated immediately upon the occurrence of any of the following events:

          (a) Consultant’s death;

          (b) Consultant becomes physically or mentally disabled such that he is unable to adequately
perform the services hereunder for a continuous period of 90 days;

          (c) Consultant is convicted of any felony or crime of moral turpitude or engages in any
activity that constitutes a material violation of normal standards of business ethics;

          (d) Consultant willfully refuses to comply with or implement reasonable policies established
by the Company;

          (e) The other
party in breach of this Agreement and has failed to cure such breach within 30 days of the receipt
of written notice of breach from the non-breaching party; or

          (f) The other party makes any statement (written or oral) that disparages, defames, or besmirches the
reputation, character, image, products, or services of the non-breaching party or any of their past or
present directors, officers, employees, or agents.

     If this Agreement is terminated prior to the expiration of the Term all terms and provisions
which survive the expiration of the Term shall survive the earlier termination hereof

     7. Miscellaneous.

          (a) This Agreement (including the exhibits, schedules and other documents referred to herein)
contains the entire understanding between the parties hereto with respect to the subject matter
hereof and supersedes any prior understandings, agreements or representations, written or oral,
relating to the subject matter hereof.

          (b) This Agreement may be executed in separate counterparts, each of which will be an original
and all of which taken together shall constitute one and the same agreement, and any party hereto
may execute this Agreement by signing any such counterpart.

          (c) Whenever possible, each provision of this Agreement shall be interpreted in such a manner
as to be effective and valid under applicable law but if any provision of this

3

 

Agreement is held to be invalid, illegal or unenforceable under any applicable law or rule,
the validity, legality and enforceability of the other provision of this Agreement will not be
affected or impaired thereby.

          (d) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, personal representatives and, to the extent permitted by subsection (e),
successors and assigns.

          (e) This Agreement and the rights and obligations of the parties hereunder shall not be
assignable, in whole or in part, by either party without the prior written consent of the other
party, except it may be assigned by the Company, without Consultant’s consent in any company which
acquired all or substantially all of the Company’s business or assets or with which the Company is
merged or consolidated.

          (f) No provision of this Agreement may be modified, amended, waived or terminated except by an
instrument in writing signed by the parties to this Agreement. No course of dealing between the
parties will modify, amend, waive or terminate any provision of this Agreement or any rights or
obligations of any party under or by reason of this Agreement.

          (g) All notices, consents, requests, instructions, approvals or other communications provided
for herein shall be in writing and delivered by personal delivery, overnight courier, mail,
electronic facsimile or e-mail addressed to the receiving party at the address set forth herein.
All such communications shall be effective when received.

	 	 	 	 	 
	 

	 	If to the Company:
	 	GlobalSecure Holdings Ltd.
	 

	 	 	 	110 Wall Street
	 

	 	 	 	New York, NY 10005
	 

	 	 	 	Attention: Chairman
	 
	 	 	 	 
	 

	 	If to the Consultant:
	 	C. Thomas McMillen
	 

	 	 	 	1103 South Carolina Avenue, S.E.
	 

	 	 	 	Washington, D.C. 20003

Any party may change the address set forth above by notice to each other party given as
provided herein.

          (h) The headings and any table of contents contained in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

          (i) ALL MATTERS RELATING TO THE INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEMENT OF THIS
AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
ANY CHOICE OF LAW PROVISIONS THEREOF.

          (j) Nothing in this Agreement, express or implied, is intended to confer upon any other person
any rights, remedies, obligations or liabilities of any nature whatsoever.

4

 

          (k) No delay on the part of the Company in exercising any right hereunder shall operate as a
waiver of such right. No waiver, express or implied, by the Company of any right or any breach by
Consultant shall constitute a waiver of any other right or breach by Consultant.

          (l) Any claim or dispute of any nature between the parties hereto arising directly or
indirectly from the relationship created by this Agreement shall be resolved exclusively by
arbitration in New York, in accordance with the applicable rules of the American Arbitration
Association. The fees of the arbitrator(s) and other costs incurred by the parties in connection
with such arbitration shall be paid by the party which is unsuccessful in such arbitration. The
decision of the arbitrator(s) shall be final and binding upon both parties. Judgment of the award
rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. In the
event of submission of any dispute to arbitration, each party shall, not later than 30 days prior
to the date set for hearing, provide to the other party and to the arbitrator(s) a copy of all
exhibits upon which the party intends to rely at the hearing and a list of all persons each party
intends to call at the hearing.

          (m) EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          (n) Remedies. The parties agree that money damages may not be an adequate remedy for
any breach of the provisions of this Agreement and that any party may, in its discretion, apply to
any court of law or equity of competent jurisdiction for specific performance and injunctive relief
in order to enforce or prevent any violations of this Agreement, and any party against whom such
proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at
law and agrees not to raise the defense that the other party has an adequate remedy at law.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth in the
first paragraph.

	 	 	 	 	 	 	 
	 	 	 	 	GLOBALSECURE HOLDINGS LTD.
	 
	 	 	 	 	 	 
	  /s/ C. Thomas McMillen

	 	 	 	By:	 	    /s/ Craig R. Bandes
	 

	 	 	 	 	 	 
	C. Thomas McMillen
	 	 	 	 	 	    Craig R. Bandes
    President

5

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