Document:

Exhibit
10.8

 

CONSENT
AGREEMENT TO EXTEND PROMISSORY NOTES

 

WHEREAS, on or about February 23, 2004
Diversified Security Corporation (“Purchaser”) executed documents to purchase
all of the issued and outstanding stock of Paragon Systems, Inc. (“Paragon”);

 

WHEREAS, the purchase of the Paragon stock
closed on or about February 27, 2004, and at that time Purchaser delivered
to Messrs. Charles Keathley, Robert Luther, Harold Bright and John Wilson
(together, the “Selling Shareholders”) a combination of cash and various
secured promissory notes as full consideration for the shares of Paragon;

 

WHEREAS, Paragon executed an additional
promissory note due the Selling Shareholders on or about March 11, 2004;

 

WHEREAS, Paragon was provided a Cure Notice
from the U.S. Department of Homeland Security by certified letter dated
March 23, 2004 (the “Cure Notice”), which Cure Notice indicated “several
issues that are a matter of extreme concern” regarding Contract Number
GS-07F-0418K (the “Contract”);

 

WHEREAS, certain of the Selling Shareholders
and the Purchaser have agreed to extend the due date on the promissory notes
listed below, and that those Selling Shareholders executing this Agreement
shall not be allowed to exercise any of the remedies set forth in the promissory
notes or any Security Agreement executed on or about February 23, 2004,
until the date set forth herein.

 

NOW THEREFORE, the parties hereby agree as
follows:

 

1                                          Extension of Due Date  For
consideration, the receipt and sufficiency hereof are acknowledged, the
undersigned parties hereto hereby agree to extend , to the earlier of (i) January 1,
2005, or (ii) the receipt of proceeds by Purchaser from an initial public
offering of its securities, the due date of the Promissory Notes (stated in
paragraph 1.02 thereof), that are listed in Section 2 hereof.

 

2.                                       Identification of the Promissory Notes  The
Promissory Notes whose due date is hereby extended are the following:

 

a.                                        Promissory Note dated February 24, 2004
executed by Purchaser to Harold Bright originally due May 31, 2004 in the
amount of $526,900.00; and

 

b.                                       Promissory Note dated February 24, 2004
executed by Purchaser to John Wilson originally due May 31, 2004 in the amount
of $526,900.00.

 

 

In addition, Messrs. Bright and Wilson
further agree to forego collection until the revised due date of their
proportion of that certain Promissory Note dated March 11, 2004 by Paragon
to Charles Keathley, individually and as agent for Robert Luther, Harold Bright
and John Wilson, originally due June 10, 2004, in the amount of
$706,507.00.

 

3.                                       Continuation of Interest 
Interest at the pre-default rate specified in each Promissory Note shall
continue to accrue, and such interest shall be payable in full on the revised
due date of such Promissory Note.

 

4.                                       Deferral of Remedies and Retroactice Effect  Each
of the Selling Shareholders executing this Agreement hereby acknowledges that
by extending the due date of the Promissory Notes that they are deferring any
and all remedies provided to them in the Stock Purchase Agreement dated
February 23, 2004, as amended, the Security Agreements executed on or
about February 24, 2004, or in any other agreement.

 

The parties hereto acknowledge that the
extension of the due date of the Promissory Notes shall be considered
retroactively effective as of May 31, 2004, such that it shall be deemed that
no default under any of the Notes shall have occurred.

 

5.                                       Other Terms Not Modified  All
terms of the Promissory Note not referred to herein shall remain as set forth
in the Promissory Notes.

 

6.                                      
Defined Terms  All
capitalized terms used herein, shall have the same meaning as such term has in
the introductory clauses of this Agreement, unless otherwise noted.

 

7.                                       Counterpart; Signature of Facsimile
Transmission  This Agreement may be executed in one or more
originals, as if the executions were on the same document. Signatures may be
transmitted by facsimile transmission, and such signature shall be deemed
valid.

 

 

Executed this 29th day of  June,
2004

 

 

	
   

  	
  DIVERSIFIED SECURITY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald G. Farrell

  	
   

  
	
   

  	
  Name:

  	
  Ronald G. Farrell

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PARAGON SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald G. Farrell

  	
   

  
	
   

  	
  Name:

  	
  Ronald G. Farrell

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLING SHAREHOLDERS

  
					

 

 

	
  /s/ Harold Bright

  	
   

  	
  /s/ John Wilson

  	
   

  
	
  Harold Bright

  	
  John Wilson

  
	
  as of: 7 Sep 2004Exhibit
10.9

 

PROMISSORY NOTE

 

	
   

  	
  Atlanta,
  Georgia

  
	
   

  	
  February 24,
  2004

  

 

ARTICLE I

 

PAYMENTS OF PRINCIPAL AND INTEREST

 

1.01                           For value received, the undersigned Diversified Security Corporation, a
corporation organized under the laws of the State of Georgia, (hereinafter
referred to as “Maker”), hereby promises to pay to the order of Harold Bright (“Payee”), at any location
Payee shall reasonably determine, the principal sum of FIVE HUNDRED TWENTY-SIX THOUSAND NINE HUNDRED AND NO
HUNDREDTHS DOLLARS ($526,900.00) except as may be adjusted in
accordance with the terms hereof, plus simple interest on the unpaid principal
amount hereof at the rate of seven (7.0%) percent per annum, all according to
the terms hereof, and with all such payments being payable in cash, check, wire
transfer or other form reasonably acceptable to Payee in lawful money of the
United States of America.

 

1.02                           Maker shall pay the obligation hereunder by
tendering a single payment on May 31, 2004 of the full amount of the principal
due hereunder, and all accrued interest and payment.

 

1.03                           Maker may prepay any or all of the
outstanding balance hereof without penalty prior to the due date of any
payment, and Payee shall apply such prepayments first to principal, then to any
interest or other amount hereunder.

 

1.04                           Notwithstanding the stated principal amount
hereof, Maker may offset against and reduce the principal amount of this Note
by an amount equal to the amount of any indemnification obligation as allowed
in Article 6 of the Stock Purchase Agreement by and between Maker and the
Selling Shareholders, as amended (the “Stock Purchase Agreement”). Such items
are referred to herein as Indemnification Obligations.

 

1.05                           Upon Maker’s receipt of any claim or bill for
any cost or expense that would give rise to an Indemnification Obligation,
Maker shall inform the Payee by the method(s) provided in the Stock Purchase
Agreement for providing notices.

 

1.06                           Maker may deduct from the principal amount of
this Note an amount equal to the amount stated in Maker’s notice, subject to
the amount deducted being added back to the principal amount of the Note if the
amount that Maker actually incurs that is subject to the Indemnification
Obligation is less than the amount previously deducted from the principal amount
of this Note. If an amount is deducted from the principal amount of this Note
and is later added back to the principal amount of the Note, Maker shall be
liable also for interest at the rate of seven percent (7%) per annum on the
amount of such deducted and re-added amount, as if such amount had never been
deducted.

 

 

1.07                           Repayment of this Note shall be subject to
any Subordination Agreement agreed upon by Maker and Payee.

 

ARTICLE II

 

SECURITY

 

2.01                           As security for payment of all of the
obligations hereunder, Maker hereby pledges to Payee, pursuant to the Security
Agreement of even date herewith, 40% of the Shares of common stock of no par
value of Paragon Systems, Inc. (the “Shares”) sold by Payee to Maker pursuant
to the Stock Purchase Agreement.

 

2.02                           RESERVED

 

2.03                           Neither Payee nor any of the Selling
Shareholders shall sell, assign, give, pledge, encumber, hypothecate or
transfer any of the Shares securing payment of the Note.

 

2.04                           The number of Shares subject to this Security
Agreement, and the number of Shares subject to release from this Security
Agreement shall be adjusted for any stock split, reverse stock split, or stock
dividend of Paragon Systems, Inc.

 

ARTICLE III

 

MISCELLANEOUS

 

3.01                           Upon the failure of Maker to tender any
payment hereunder when due, Payee may, at its option, deliver written notice to
Maker of the failure to tender such payment. If Maker has not tendered payment
of the full amount of such late payment within ten business (10) days of the
date of such notice, Payee may accelerate the full amount of principal and
interest due hereunder, and upon such acceleration, the full principal amount
hereof shall be immediately due and payable.

 

3.02                           The failure of Payee to exercise any option
hereunder, or to make demand, or to proceed to collect after making demand
hereon, shall not constitute a waiver of the right to exercise such option,
make such demand or to proceed to collect.

 

3.03                           Maker waives presentment for payment, notice
of dishonor, protest, notice of protest and diligence in bringing suit against
any party hereto.

 

2

 

3.04                           The obligations evidenced or created by this
Note, as well as all waivers of rights by Maker contained herein shall
effectively bind and be the obligations and waivers of any and all others who
may at any time become liable for the payment of all or any part of this Note.

 

3.05                           No party other than the Maker shall be liable
for the payment of all or any part of this Note unless such party has executed a
written document agreeing to be liable for payment of any or all of this Note.

 

3.06                           If any provision (or any part of any
provision) contained in this Note shall for any reason be held or deemed to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provision (or remaining part of
the affected provision) of this Note, and this Note shall be construed as if
such invalid, illegal or unenforceable provision (or part thereof) had never
been contained herein and the remaining provisions of this Note shall remain in
full force and effect.

 

3.07                           Payee shall not sell, assign, give, pledge,
encumber, hypothecate or transfer any of its rights pursuant to this Note.

 

3.08                           Any notice required hereunder shall be deemed
given three (3) business days after such notice has been transmitted and
received by the party to receive such notice by the method(s) provided in the
Stock Purchase Agreement for providing notices.

 

3.09                           RESERVED

 

3.10                           Capitalized terms such “Selling Shareholders”
used herein and not otherwise defined herein shall have the same definition as
that term has in the Stock Purchase Agreement.

 

3.11                           Any party who is required to bring an action
to enforce the terms of this Note shall be entitled to reasonable attorneys’
fees, in addition to all other amounts otherwise due hereunder.

 

3

 

Executed
this 24  day
of February, 2004

 

	
   

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  DIVERSIFIED
  SECURITY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald G. Farrell

  	
   

  
	
   

  	
  Name:

  	
  Ronald
  G. Farrell

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00072-of-00352.parquet"}]]