Document:

Employment Agreement by and between Cendant Corporation and Steven Upshaw

 Exhibit 10.38 

					
	

	  		  	Strictly Private & Confidential

  

 Cendant Marketing Group/Trilegiant Corporation 
 STATEMENT OF 
 TERMS AND CONDITIONS 
  

 Cendant Marketing Group/Trilegiant Corporation 
 100 Connecticut Avenue 
 Norwalk, CT 06850 
 U.S.A. 

			
	 

  
	  	Strictly Private & Confidential

  

 June 15, 2004 (Revised July 30, 2004) 
 Mr. Steven Upshaw 
 [ADDRESS REDACTED] 
 U.S.A. 
 Dear Steve: 
 TERMS AND CONDITIONS OF EMPLOYMENT 
 The following Terms and
Conditions of Employment apply to your employment with the CIMS division of the Cendant Marketing Group with the ultimate parent being Cendant Corporation (hereafter referred to as “the Company”). 
  

	1.	Date of Commencement 

 Your employment with CIMS will
commence on June 1, 2004 and will continue for a period of no less than two (2) years from the time you actually relocate, unless earlier terminated in accordance with section 12 below (the “Assignment Term”). 
  

	2.	Duties 

  

	2.1	You are employed as Managing Director, CIMS (business unit Executive Vice President / EL level) and you will perform all acts, duties and obligations and comply with such orders as
may be designated by the Company which are reasonably consistent with that position. More specifically, you will be responsible for the development of the CIMS “retail” business throughout Europe and the “package and retail”
business in the UK. Accordingly, the sales, marketing, and product development for the package and retail business in the UK and Ireland of CIMS shall report to you directly. 

  

	2.2	You are required to comply with all the Company’s rules, regulations and policies from time to time in force and to comply with the Company’s lawful and reasonable
instructions. 

  

	2.3	During your period of employment you shall not do anything that would cause you to be disqualified from continuing to act on any Board of Directors to which you may be appointed.
You shall be expected to do all that is necessary within your power to promote, develop and to extend the business of the Company and at all times and in all respects conform to and comply with the proper and reasonable directions and regulations of
the Board of Directors and your supervisor as identified in Section 2.4. 

  

	2.4	You will report directly to the President and CEO of Cendant Marketing Group, or higher level Cendant executive as company determines in its sole discretion.

  

 Page - 2 

			
	

	  	Strictly Private & Confidential

  

	3.	Hours of Work 

  

	3.1	Your basic hours of work are 37.5 per week. Normal working hours are Monday to Friday 9.00am to 5.30pm including one hour for lunch to be taken at a time agreed with your
manager. However, the Company reserves the right to change your start and finish times. 

  

	3.2	You may also be required to work additional hours by way of overtime either as or when requested to do so by the Company or when the proper performance of your work requires it.
Overtime working may occur both on weekdays and at weekends. You will not be entitled to any overtime pay for such work. 

  

	4.	Place of Work 

 Your primary place of work will be CIMS
Limited offices at Axis Park, Langley, Berkshire, UK. However, you may be required to work at any other premises that the Company currently has or may later acquire within a 50 mile radius. You may also be required to travel within Europe and the
United States as part of performing your duties of employment. 
  

	5.	Remuneration, Expatriate Compensation, Expenses and Deductions 

  

	5.1	For all services rendered by you pursuant to this Agreement during the Assignment Term, including services as an executive, officer, director or committee member of the Company or
any of its subsidiaries or affiliates, you will be compensated as set forth in this Section 5. Your salary is USD $225,000.00 per annum (or such higher sum as the Company may subsequently determine and notify to you) (the “Base
Salary”). This salary is payable from June 1, 2004 and you will be eligible for a non- prorated merit increase in conjunction with the annual performance review process in December 2004. Additionally, for each year during the term of the
assignment that you are located in the UK, you will receive an incremental USD $30,000, (“the Expatriate Premium”), payable in equal instalments in conjunction with the normal payroll cycle. 

  

	5.2	You are eligible for the Company’s discretionary bonus plan that is set at a target of 50% of your base salary subject to the parameters established by Cendant Corporation and
your line manager. This target will be effective June 1, 2004 with your bonus for January 1, 2004 – May 31, 2004 calculated at a 40% target of your base salary. For 2004 only, you will be guaranteed a bonus not to exceed l00% of
the targets set forth above. For calculation purposes, during the Assignment Term, your “bonus” salary will be equal to the sum of your Base Salary, during such period, and the Expatriate Premium. 

  

	5.3	The Company will provide you a one time relocation allowance equal to 15% of your annual base salary (USD$33,750.00). It is estimated that GBP£8,000.00 of this allowance will
be tax free (under UK revenue regulations) with the balance subject to applicable withholding taxes. 

  

 Page - 3 

			
	 

  
	  	Strictly Private & Confidential

  

	5.4	The Company will pay you in local currency and USD, at ratios to be mutually agreed upon, with a quarterly review of exchange rates to minimize any negative impact of exchange rate
changes. The split of local currency to USD will also be subject to quarterly review, and appropriate adjustments will made to reflect your personal spending requirements so as to ensure that you are not disadvantaged due to exchange rate movements.

  

	5.5	The Company will pay for the benefits and services as set forth in the Cendant International Assignee Guide (“the Policy”) attached for your reference. In the interests of
continued understanding, we have included the additional commentary within the body of the Policy. 

  

	5.6	The Company will provide you one vehicle in accordance the Vehicle Allowance Program for an EL and one additional vehicle for use during the assignment term. The UK Vehicle
Allowance Program for an EL equates to a lease cost value of GBP£9,000 per annum, and your additional vehicle (per UK executive car allowance) equates to a lease cost value of GBP£15,600 per annum. The ownership and operating expenses
including insurance, applicable taxes, registration fees, fuel, parking, tolls and maintenance and repairs will be paid for you by Cendant over and above the stated lease cost value. 

  

	5.7	The Company will pay for the costs to place your two children in private school in the local community currently estimated at GBP£9,000 per year per child, or as reasonably
required to ensure continuity between the home and host countries. Company will appropriately adjust allowance as reasonably needed to accommodate for fee increases assessed by each respective school, if any. The company will also pay one-time costs
associated with completing the enrolment process, including application fees, deposits, etc. 

  

	5.8	The Company will pay for the cost of housing with a monthly rental allowance of GBP£4,400, and will pay the cost of reasonable utilities for you and your family in accordance
with the international relocation guide. 

  

	5.9	The Company will maintain your U.S. healthcare coverage, subject to any routine changes that accompany open enrolment, but with access and costs equal to other Cendant Marketing
Group executive vice presidents in the U.S. You will continue to have the associated employee contributions deducted from your payroll. In addition, the Company will make available and pay all costs associated with providing private healthcare
coverage in the U.K., at levels equal or better to similarly situated executives, for you and your family. 

  

	5.10	You will be paid or reimbursed for any reasonable expenses properly incurred by you while performing your duties on behalf of the Company, subject to your producing receipts in
respect of such expenses (when requested by the Company) and your compliance with the Company’s published rules and procedures relating to business expenses. Further details of these rules and procedures can be obtained from the HR Department.

  

	5.11	 The Company shall be entitled at any time during your employment, or in any event on termination, to deduct from your remuneration hereunder 

  

 Page - 4 

			
	 

  
	  	Strictly Private & Confidential

  

	 	 
any monies due from you to the Company including but not limited to any outstanding loans, advances, the cost of repairing any damage or loss or non return
to the Company’s property caused by you (and of recovering the same) Should the company believe there is a requirement to deduct monies from an remuneration, the company will provide reasonable notification. 

  

	5.12	Upon termination of the assignment, the Company will provide for return Business Class airfare plus all reasonable costs associated with the shipment of your personal household
goods to any nominated address in the United States. 

  

	5.13	All approved moving expenditures, assignment country accommodations and other associated relocation costs will be provided net of taxes. 

  

	5.14	As stated in the Policy under “Goods and Services (Cost of Living) Allowance”, the Company will pay you USD$25,000.00, per annum, payable in equal monthly instalments
during the year as the minimum goods and services allowance. 

  

	6.	Long Term Incentive Plan 

  

	    	You are eligible to participate in Cendant’s discretionary Long Term Incentive Plan subject to the approval by the Cendant Compensation Committee according to the terms of the
Cendant Long Term Incentive Plan. Notwithstanding the forgoing, the Company will exercise the earliest opportunity to provide you with the LTIP grant, customary for similarly situated executives during the annual grant process in calendar year 2005.

  

	7.	Confidential Information 

  

	7.1	You must not either during your employment (except in the proper performance of your duties) or at any time (without limit) after the termination of your employment, directly or
indirectly (a) use for your own purposes or those of any other person, company, business entity or other organisation whatsoever, or (b) disclose to any person, company, business entity or other organisation whatsoever, any trade secrets
or confidential information relating or belonging to the Company or its Associated Companies. 

  

	7.2	This type of information includes but is not limited to any such information relating to customers, customer lists or requirements, price lists or pricing structures, marketing and
sales information, business plans or dealings, employees or officers, financial information and plans, designs, formulae, product lines, research activities, prototypes, services, source codes and computer systems, software, any document marked
“Confidential” (or with a similar expression), or any information which you have been told is confidential or which you might reasonably expect the Company would regard as confidential, or any information which has been given to the
Company or any Associated Company in confidence by customers, suppliers or other persons. 

  

 Page - 5 

			
	 

  
	  	Strictly Private & Confidential

  

	7.3	The trade secrets and confidential information shall remain so unless and until they enter the public domain other than by way of unauthorised disclosure by any person.

  

	7.4	You must not at any time during your employment with the Company make any notes or memoranda relating to any matter within the scope of the Company’s or any Associated
Company’s business, dealings or affairs otherwise than for the proper performance of your duties of employment. 

  

	8.	Exclusivity of Service 

  

	8.1	You are required to devote your full time, attention and abilities to your job duties during working hours, and to act in the best interests of the Company at all times.

  

	8.2	You must not, without the written consent of the Company, be in any way directly or indirectly engaged or concerned in any other business or activities where this is, or is likely
to be, in conflict with the interests of the Company or any Associated Company or where this may adversely affect the efficient performance of your duties. 

  

	9.	Copyright, Inventions and Patents 

 All records, documents,
papers (including copies and summaries of them) and other copyright protected works made or acquired by you in the course of your employment shall, together with all the WORLDWIDE copyright and design rights in all such works, be and at all times
remain the absolute property of the Company. 
  

	10.	Collective Agreement 

 Your employment is not covered by any
collective agreement. 
  

	11.	Grievance Procedure 

 If you are unhappy about any aspect of
your employment with the Company you should raise the matter at first instance with your manager/supervisor. If you are still unhappy you should take up the grievance with Human Resources whose decision shall be final within the Company. The terms
of the Company’s Grievance Procedure are contained in the Employee Handbook. 
  

	12.	Constructive Discharge; Termination 

  

	12.1	 At any time during the Assignment Term following the period that is at least two (2) years from the time you actually relocate, you can notify the Company that
you wish to repatriate to the United States to work for the Company. If you exercise your option to repatriate and the Company can not identify a position of Equal Responsibility (including those responsibilities and skills acquired during the
expatriate assignment) (as hereinafter defined) and base compensation consistent with your experience within six months of the exercise of such option, you, subject to the next sentence, may terminate your employment with the Company 

  

 Page - 6 

			
	 

  
	  	Strictly Private & Confidential

  

	 	 
as “constructive discharge”. If you elect to terminate you employment with the Company as constructive discharge, you must provide the Company a
written notice which describes the circumstances being relied on for the termination with respect to this Agreement within thirty (30) days after the event giving rise to the notice; the Company then will have thirty (30) days after
receipt of such notice to remedy the situation prior to any termination for constructive discharge. Equal Responsibility shall be defined as (i) an EVP level position at Cendant Marketing Group in southern Connecticut, USA and (ii) no
material or adverse change, or a material reduction of, the your duties and responsibilities to the Company and (iii) the same or higher Base Salary. Upon a termination for constructive discharge as described herein, subject to the execution by
you of a release of claims against the Company and its affiliates in such form determined by the Company in its sole discretion, the Company shall pay to you in a lump sum payment one and one-half year’s Base Salary plus a pro-rata portion of
your bonus target and any incentive compensation deemed “earned”. Any payments due to you under this Section 12.1 shall be in lieu of any other severance benefits otherwise payable to you under any severance plan of the Company or its
affiliates. 

  

	12.2	If during the Assignment Term, prior to your request to repatriate in accordance with section 12.1 above, there is (i) any material failure of the Company to fulfil its
obligations under this Agreement (including without limitation any reduction of Base Salary, Expatriate Premium, Goods and Services Allowance or any other compensation provided hereunder), (ii) a material or adverse change to, or a material
reduction of, your duties and responsibilities to the Company or (iii) the relocation of the primary office to any location other than London, UK or the surrounding areas as further described in section 4, you may terminate your employment,
subject to the next sentence, as constructive discharge. If you elect to terminate you employment with the Company as constructive discharge, you must provide the Company a written notice which describes the circumstances being relied on for the
termination with respect to this Agreement within thirty (30) days after the event giving rise to the notice; the Company then will have thirty (30) days after receipt of such notice to remedy the situation prior to any termination for
constructive discharge. Upon a termination for constructive discharge as described herein, subject to the execution by you of a release of claims against the Company and its affiliates in such form determined by the Company, in its sole discretion,
the Company shall pay to you in a lump sum payment one and one-half year’s Base Salary plus a pro-rata portion of your bonus target and any incentive compensation deemed “earned”. Any payments due to you under this Section 12.2
shall be in lieu of any other severance benefits otherwise payable to you under any severance plan of the Company or its affiliates. 

  

	12.3	The Company reserves the right to terminate your contract without any notice if it has reasonable grounds to believe you are guilty of gross misconduct or gross negligence. Examples
of gross misconduct are set out in the Employee Handbook, which can be obtained from the HR Department. 

  

 Page - 7 

			
	 

  
	  	Strictly Private & Confidential

  

	12.4	Your employment will terminate automatically, without notice, and by mutual consent on the date upon which you reach the age of 65 which is the normal retirement age within the
Company. 

  

	12.5	The Company reserves the right (in its absolute discretion) to terminate your employment at any time for any reason. If the Company terminates your employment for any reason other
than pursuant to Section 12.2 above, then, subject to the execution by you of a release of claims against the Company and its affiliates in such form determined by the Company in its sole discretion, the Company shall pay to you in a lump sum
payment one and one-half year’s Base Salary plus a pro-rata portion of your bonus target and any incentive compensation deemed “earned”. Any payments due to you under this Section 12.4 shall be in lieu of any other severance
benefits otherwise payable to you under any severance plan of the Company or its affiliates. 

  

	12.6	On termination of your employment, you must immediately return to the Company in accordance with its instructions all equipment, correspondence, records, specifications, software,
models, notes, disks, reports and other documents and any copies thereof and any other property belonging to the Company or its Associated Companies, (including but not limited to keys, equipment, and passes), which are in your possession or under
your control. You must, if so required by the Company, confirm in writing that you have complied with this obligation. 

  

	12.7	The Company shall have the right to suspend you on full pay and benefits pending any investigation into potential dishonesty, gross misconduct or other circumstances, which (if
proved) would entitle the Company to dismiss you summarily. 

  

	13.	Definitions 

 “Associated Company” means any firm,
company, corporation or other organisation: 
  

	 	(a)	Which is directly or indirectly controlled by the Company; or 

  

	 	(b)	Which directly or indirectly controls the Company; or 

  

	 	(c)	Which is directly or indirectly controlled by a third party who also directly or indirectly controls the Company; or 

  

	 	(d)	of which the Company or any other Associated Company owns or has a beneficial interest in 20% or more of the issued share capital or 20% or more of its capital assets; or

  

	 	(e)	any successor in title or assign of the firms, companies, corporations or other organisations referred to above. 

  

 Page - 8 

			
	 

  
	  	Strictly Private & Confidential

  

 “Company” shall include the successors in title and assigns of the Company. 
  

	14.	Miscellaneous 

  

	14.1	With the exception of agreements between yourself and Cendant relating to non-competition and non-solicitation of customers and employees including the Management Incentive Plan
(“MIP”), the contents of this letter cancel and are in substitution for all previous letters of engagement, agreements and arrangements whether oral or in writing relating to the subject matter hereof between the Company and yourself, all
of which shall be deemed to have been terminated by mutual consent. With the exception of agreements between yourself and Cendant relating to non - competition and non-solicitation of customers and employees, this letter now represents all the terms
of your employment with the Company, 

  

	14.2	The Company reserves the right (in its absolute discretion) to require that you do not attend at work and/or do not undertake all or any of your duties during all or any part of any
period of notice (whether given by you or the Company), provided always that the Company shall continue to pay your salary and contractual benefits, as set forth herein. 

  

	14.3	This letter is governed by and construed in accordance with the laws of the United States of America, and you and the Company submits to the exclusive jurisdiction of the U.S.A.
Courts. 

 Please will you sign both copies of this letter and return the top copy to me. 
 Yours sincerely 
  

	
	 /s/ Nathaniel J. Lipman

	Nathaniel J. Lipman
	President and CEO
	For and on behalf of Trilegiant Corporation
	
	 /s/ Mary Rusternolz

	Mary Rusternolz
	Executive Vice President – Support Services
	For and on behalf of Trilegiant Corporation

 I agree with the Terms and Conditions of my Employment as set out or referred to above. 
  

					
	Signed	 	 /s/ Steve Upshaw                                  
          
	  	 Dated 17 Aug. 2004

 Print Name: Steve Upshaw 
  

 Page - 9Warrant to Purchase Common Stock of ICx

 Exhibit 4.2 
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT. 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS FOLLOWING THE EFFECTIVE DATE OF A REGISTRATION
STATEMENT OF THE COMPANY FILED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SECURITIES. 
 WARRANT TO PURCHASE COMMON STOCK 
 OF 
 ICX TECHNOLOGIES, INC. 
 VOID AFTER FEBRUARY 3, 2016 
 This Warrant is issued to Valentis SB, L.P., or its registered assigns (“Holder”) by ICx Technologies, Inc., a Delaware corporation (the
“Company”), on February 3, 2006 (the “Warrant Issue Date”). 
 1. Purchase Shares. Subject to
the terms and conditions hereinafter set forth and compliance with applicable laws, the Holder is entitled at any time and from time to time until the Expiration Date, upon surrender of this Warrant at the principal office of the Company (or at such
other place as the Company shall notify the holder hereof in writing), to purchase from the Company up to Seven Hundred Fifty Thousand (750,000) fully paid and nonassessable shares of Common Stock of the Company, $0.001 par value per share (the
“Common Stock”). The number of shares of Common Stock issuable pursuant to this Section 1 (the “Shares”) shall be subject to adjustment pursuant to Section 8 hereof. 
 2. Exercise Price. The purchase price for each Share shall be $7.50, as adjusted from time to time pursuant to Section 8 hereof (the
“Exercise Price”). 
 3. Exercise Period. The purchase right
represented by this Warrant is exercisable by the Holder, in whole or in part, at any time after the date hereof and before the close of business on the tenth (10th
) anniversary thereof (the “Expiration Date”). In the event of (a) the closing of the issuance and sale of shares of Common Stock in the Company’s first
underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “IPO”), (b) the closing of the sale or transfer of all or substantially all of the assets of the
Company to another entity (the “Acquiring Person”), or (c) the closing of 

 
the acquisition of the Company by an Acquiring Person by means of merger, consolidation or other transaction or series of related transactions, resulting in
the exchange of the outstanding shares of the Company’s capital stock such that the stockholders of the Company prior to such transaction own, directly or indirectly, less than 50% of the voting power of the surviving entity, the Company shall
notify the Holder at least ten (10) days prior to the closing of such event or transaction. Each of the transactions specified in clauses (b) and (c) of the preceding sentence is hereinafter referred to as a “Corporate
Transaction.” 
 4. Method of Exercise. While this Warrant remains outstanding and exercisable in accordance with
Section 3 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by: 
 (a) the surrender of the Warrant, together with a duly executed copy of the form of Notice of Election attached hereto, to the Secretary of the Company at its principal offices; and 
 (b) the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Shares being purchased. 
 5. Conversion. In lieu of exercising this Warrant pursuant to Section 4, the Holder may elect to convert this Warrant, without the payment by
the Holder of any additional consideration, into shares of Common Stock equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant to the Secretary of the Company at its principal office together with
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 pursuant to this conversion;
			
		  	Y =	  	The number of Shares in respect of which the election to convert is made;
			
		  	A =	  	The fair market value of one share of the Common Stock at the time the election to convert is made;
			
		  	B =	  	The Exercise Price.

 For purposes of this Section 5, the fair market value of one share of Common Stock as of a particular date
shall be: (a) if applicable, the average of the closing bid and asked prices of the Company’s common stock quoted in the over-the-counter market summary or the closing price quoted on any exchange on which the Common Stock is listed,
whichever is applicable, as published in the United States Edition of the Wall Street Journal for the ten (10) trading days immediately prior to but not including the date of determination of fair market value, (b) if the conversion
pursuant to this Section 5 is immediately prior to the closing of an acquisition of the Company (as described Section 3(c) above), then the price per share of the Common Stock in 

  

 -2- 

 
such transaction, or (c) if 5(a) and 5(b) hereof are not applicable or if the price in the transaction set forth in 5(b) is not in cash, then as
determined in good faith by the Company’s board of directors; provided that if Holder objects to such determination, then the value shall be determined by an appraiser chosen by the Board of Directors who is reasonably acceptable to Holder, and
the cost of such appraisal shall be borne equally by the Company and the Holder. 
 6. Certificates for Shares. Upon the exercise of
the purchase or conversion rights evidenced by this Warrant, one or more certificates for the number of Shares so purchased shall be issued as soon as practicable thereafter (with appropriate restrictive legends, if applicable), and in any event
within thirty (30) days of the delivery of the Notice of Exercise. In the event that this Warrant is exercised in part only, the Company shall, upon surrender of this Warrant for cancellation, execute and deliver a new Warrant evidencing the
rights of the Holder to purchase the balance of the Shares purchasable hereunder. 
 7. Issuance of Shares. The Company covenants and
agrees as follows: 
 (a) The Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly issued,
fully paid and nonassessable, not subject to any preemptive rights and free from all taxes, liens, charges and other encumbrances with respect to the issuance thereof other than those created by or imposed upon the Holder thereof through no action
by the Company. 
 (b) The Company shall at all times have authorized and reserved, and shall keep available and free from
preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise of the rights represented by this Warrant. 
 (c) Upon receipt by the Company of the Notice of Election and the Exercise Price, the Holder shall be deemed to be the holder of the Shares issuable upon such exercise, notwithstanding that the share transfer books of
the Company shall then be closed and that certificates representing such Shares shall not then be actually delivered to the Holder. The Company shall pay all taxes and other charges that may be payable in connection with the issuance of the Shares
and the preparation and delivery of stock certificates pursuant to this Section 7 in the name of the Holder. The Company shall register said Shares in the Company’s stockholders registry. 
 8. Adjustment of Exercise Price and Number of Shares. The number of and kind of securities purchasable upon exercise of this Warrant and the
Exercise Price shall be subject to adjustment from time to time as follows: 
 (a) Subdivisions, Combinations and Other
Issuances. If the Company shall at any time prior to the expiration of this Warrant subdivide its Common Stock, by split-up or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend with respect to
any shares of its Common Stock, the number of Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination.
Appropriate adjustments shall also be made to the purchase price 

  

 -3- 

 
payable per share, but the aggregate purchase price payable for the total number of Shares purchasable under this Warrant (as adjusted) shall remain the
same. Any adjustment under this Section 8(a) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed,
upon the making of such dividend. 
 (b) Reclassification, Reorganization and Consolidation. In case of any
reclassification, capital reorganization, or change in the Common Stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 8(a) above or a Corporate Transaction), then, as a condition
of such reclassification, reorganization, or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any
time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable in connection with such
reclassification, reorganization, or change by a holder of the same number of shares of Common Stock as were purchasable by the Holder immediately prior to such reclassification, reorganization, or change. In any such case appropriate provisions
shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate
adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same. 
 (c) Cash Distributions. No adjustment on account of cash dividends or interest on the securities as to which purchase rights under this Warrant exist will be made to the Exercise Price under this Warrant.

 (d) Notice of Adjustment. When any adjustment is required to be made in the number or kind of shares purchasable
upon exercise or conversion of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of shares of Common Stock or other securities or property thereafter purchasable upon exercise of this
Warrant. 
 9. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the
exercise or conversion of this Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect. 
 10. Market Stand-Off. The Shares issuable under this Warrant shall be subject to the following market stand-off restriction (the “Market
Stand-Off”): 
 (a) Holder hereby agrees that, in connection with the initial public offering of the Common Stock of
the Company under the Securities Act of 1933, as amended (the “Securities Act”) for the account of the Company, if so requested by the Company or any representative of the underwriters (the “Managing Underwriter”),
the 

  

 -4- 

 
Holder shall not, without the prior consent of the Managing Underwriter, (i) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Shares or any securities convertible into or exercisable or exchangeable for the
Shares (whether such shares or any such securities are then owned by the Holder or are thereafter acquired), or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of the Shares, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of the Shares or such other securities, in cash or otherwise, during the period specified by the Company’s Board
of Directors at the request of the Managing Underwriter (the “Market Standoff Period”), with such period not to exceed 180 days following the effective date of a registration statement of the Company filed under the Securities Act
pursuant to such offering. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. This Market Stand-Off provision shall apply only to the
Company’s initial public offering of equity securities and shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall only be applicable to the Holder if all officers, directors, founders and
greater than one percent (1%) stockholders of the Company enter into similar agreements. The underwriters in connection with the Company’s initial public offering are intended third party beneficiaries of this Market Stand-Off provision
and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 
 (b) Any
new, substituted or additional securities which are, by reason of any stock dividend, stock split, recapitalization, reorganization or similar transaction affecting the Company’s outstanding common stock, distributed with respect to the
purchased Shares shall be immediately subject to this Market Stand-Off provision to the same extent the Shares are at the time covered by such provisions. 
 11. No Stockholder Rights. Prior to exercise or conversion of this Warrant, the Holder shall not be entitled to any rights of a stockholder with respect to the Shares, including (without limitation) the right
to vote such Shares, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and such Holder shall not be entitled to any notice or other communication concerning the business or affairs
of the Company. However, nothing in this Section 11 shall limit the right of the Holder to be provided the notices required under this Warrant. 
 12. Transfers of Warrant. 
 (a) Subject to compliance with applicable federal and
state securities laws, this Warrant and all rights hereunder and all Shares issuable on the exercise hereof are transferable in whole or in part, upon prior written notice to the Company, subject to the Company’s right to receive an opinion of
counsel as set forth in the legend hereto. The transfer shall be recorded on the books of the Company upon the surrender of this Warrant, properly endorsed, to the Company at its principal offices, and the payment to the Company of all transfer
taxes and other governmental charges imposed on such transfer. In the event of a partial transfer, the Company shall issue to the holders one or more appropriate new warrants. 
  

 -5- 

 (b) Each certificate representing the Securities (as defined below) and any other
securities issued in respect of the Securities upon any stock split, stock dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of Section 12) be stamped or otherwise imprinted
with legends in substantially the following form (in addition to any legend required under applicable state securities laws): 
 THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND
UNTIL REGISTERED UNDER SUCH ACT AND QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION
OR QUALIFICATION IS NOT REQUIRED. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD OF UP TO 180 DAYS
FOLLOWING THE EFFECTIVE DATE OF A REGISTRATION STATEMENT OF THE COMPANY FILED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH LOCK-UP PERIOD IS BINDING ON TRANSFEREES OF THESE SECURITIES. 
 13. Successors and Assigns. The terms and provisions of this Warrant shall inure to the benefit of, and be binding upon, the Company and the
Holder and its respective successors and assigns. 
 14. Amendments and Waivers. Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the holders of a majority of shares of the Common Stock issued
or issuable upon exercise of this Warrant. Any waiver or amendment effected in accordance with this Section 14 shall be binding upon each holder of any Shares purchased under this Warrant at the time outstanding, each future holder of all such
Shares and the Company. 
  

 -6- 

 15. Representations and Warranties of Registered Holder. The Holder understands that neither this
Warrant nor the shares of Common Stock issuable hereunder have been registered under the Securities Act or any state securities laws. As a condition to the issuance of this Warrant and to its exercise, the Holder hereby represents and warrants to
the Company that: 
 (a) The Warrant and, if applicable, the shares of Common Stock (collectively, the
“Securities”) have been acquired by the Holder for investment and not with a view to the sale or other distribution thereof within the meaning of the Securities Act and the Registered Holder has no present intention of selling or
otherwise disposing all or any portion of the Securities. 
 (b) The Holder has acquired the Securities for the Holder’s
own account only, and no one else has any beneficial ownership in the Securities. 
 (c) The Holder is capable of evaluating
the merits and risks of any investment in the Securities, is financially capable of bearing a total loss of this investment and has either: (i) a preexisting personal or business relationship with the Company or its principals or (ii) by
reason of the Holder’s business or financial experience, has the capacity to protect his or its own interests in connection with this investment. 
 (d) The Holder has had access to all information regarding the Company, its present and prospective business, assets, liabilities and financial condition that the Holder considers important to making the decision to
acquire the Securities and has had ample opportunity to ask questions of and receive answers from the Company’s representatives concerning an investment in the Securities and to obtain any and all documents requested in order to supplement or
verify any of the information supplied. 
 (e) The Holder understands that the Securities shall be deemed restricted
securities under the Securities Act and may not be resold unless they are registered under the Securities Act and any applicable State securities law, or in the opinion of counsel in form and substance satisfactory to the Company, an exemption from
such registration is available. 
 (f) The Registered Holder is aware of Rule 144, as amended, promulgated under the
Securities Act which currently provides, in substance, that: (i) after one year from the date restricted securities have been purchased and fully paid for, a holder may transfer restricted securities provided certain conditions are met (e.g.,
certain public information is available about the Company), and specific limitations on the amount of shares which can be sold within certain periods and the manner in which such shares must be sold are complied with; and (ii) after two years
from the date the securities have been purchased and fully paid for, holders who are not “affiliates” of the Company may sell restricted securities without satisfying such conditions. 
 (g) The Holder further understands that if the requirements of Rule 144 are not met, registration under the Securities Act, compliance
with Regulation A, or some other registration exemption will be required for any disposition of the Securities; and that, although Rule 144 is not exclusive, the SEC has expressed its opinion that persons proposing to sell restricted securities
other than in a registered offering or other than pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and such persons and the brokers who
participate in the transactions do so at their own risk. 
  

 -7- 

 16. Loss, Theft, Desctruction or Mutilation of Warrant. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will execute and deliver a new Warrant of like tenor and amount. 
 17. Saturdays, Sundays, Holidays, etc. If
the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, a Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding
day not a Saturday, Sunday or legal holiday. 
 18. Notices. All notices required under this Warrant shall be deemed to have been
given or made for all purposes (i) upon personal delivery, (ii) upon confirmation receipt that the communication was successfully sent to the applicable number if sent by facsimile; (iii) one day after being sent, when sent by
professional overnight courier service, or (iv) three (3) days after posting when sent by registered or certified mail. Notices to the Company shall be sent to the principal office of the Company (or at such other place as the Company
shall notify the Holder hereof in writing). Notices to the Holder shall be sent to the address or facsimile number indicated on the signature page hereof (or at such other place as the Holder shall notify the Company hereof in writing). 

19. Attorneys’ Fees. If any action of law or equity is necessary to enforce or interpret the terms of this Warrant, the prevailing party
shall be entitled to its reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which it may be entitled. 
 20. Captions. The section and subsection headings of this Warrant are inserted for convenience only and shall not constitute a part of this Warrant in construing or interpreting any provision hereof. 
 21. Counterparts. This Warrant may be executed in any number of counterparts, each of which shall be enforceable, and all of which together shall
constitute one instrument. 
 22. Governing Law. This Warrant shall be governed by the laws of the State of Delaware. 
  

 -8- 

 IN WITNESS WHEREOF, the undersigned has caused this Warrant to be executed by an officer thereunto duly
authorized. 
  

			
	ICX TECHNOLOGIES, INC.
		
	By:	 	/s/ Hans Kobler
		 	 Hans Kobler
 Chief Executive
Officer

 ACKNOWLEDGED AND AGREED: 
 WARRANTHOLDER 
 VALENTIS SB, L.P. 
  

			
	
		
	By:	 	/s/ Arthur Amron
	Print Name:	 	Arthur Amron
		 	Vice President and Assistant Secretary

 Address*: 
 c/o Wexford
Capital LLC 
 411 West Putnam Ave. 
 Greenwich, CT 06830

 Facsimile #: (203) 862-7312 
 Email: aamron@wexford.com

  

	*	Please indicate address for notice purposes. 

  

 -9- 

 NOTICE OF EXERCISE 
 To: ICX TECHNOLOGIES, INC. 
 The undersigned hereby elects to [check applicable
subsection]: 
  

	 ̈            (a)  	Purchase                      shares of Common Stock of ICx Technologies,
Inc. pursuant to the terms of the attached Warrant and payment of the Exercise Price required under such Warrant accompanies this notice; 

       OR 
  

	 ̈            (b)  	Exercise the attached Warrant for [all of the shares]
[                     of the shares] [cross out inapplicable phrase] purchasable under the Warrant pursuant to the
conversion provisions of Section 5 of such Warrant. 

 The undersigned hereby represents and warrants that the undersigned
is acquiring such shares for its own account for investment purposes only, and not for resale or with a view to distribution of such shares or any part thereof. 
  

			
	 WARRANTHOLDER:
  

		
	By:	 	  
	Name:	 	  
	Title:	 	  

  

					
		  	Address:	  	  
		  		  	  

 Date:
                     
 Name in which shares
should be registered:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]