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EXHIBIT
10.4

GLOBALSECURE HOLDINGS, LTD.

2005 STOCK INCENTIVE PLAN

1. Establishment, Purpose and Types of Awards. GlobalSecure Holdings, Ltd., a Delaware corporation
(the “Company”), hereby establishes the GlobalSecure Holdings, Ltd. 2005 Stock Incentive Plan (the
“Plan”). The purpose of the Plan is to promote the long-term growth and profitability of the
Company by (i) providing key people with incentives to improve stockholder value and to contribute
to the growth and financial success of the Company through their future services, and (ii) enabling
the Company to attract, retain and reward the best-available persons. This Plan is a continuation,
and amendment and restatement, of the Company’s 2003 Stock Incentive Plan and shall control with
respect to any Awards outstanding under the 2003 Stock Incentive Plan, except that the provisions
of the 2003 Stock Incentive Plan shall continue to control with respect to any options or stock
awards outstanding thereunder to the extent necessary to avoid establishment of a new measurement
date for financial accounting purposes and to preserve the status of any options that are intended
to qualify as “incentive stock options” within the meaning of Section 422 of the Internal Revenue
Code. The Plan permits the granting of stock options (including incentive stock options qualifying
under Code section 422 and nonstatutory stock options), stock appreciation rights, restricted or
unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any
combination of the foregoing.

2. Definitions. Under this Plan, except where the context otherwise indicates, the following
definitions apply:

     (a) “Administrator” means the Board or the committee(s) or officer(s) appointed by the Board
that have authority to administer the Plan as provided in Section 3 hereof.

     (b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint
ventures, limited liability companies, and partnerships). For this purpose, “control” shall mean
ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the entity.

     (c) “Award” means any stock option, stock appreciation right, stock award, phantom stock
award, performance award, or other stock-based award.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Change in Control” means: (i) the acquisition (other than from the Company) in one or
more transactions by any Person, as defined in this Section 2(e), of the beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as
amended) of 50% or more of (A) the then outstanding shares of the securities of the Company, or (B)
the combined voting power of the then outstanding securities of the Company entitled to vote
generally in the election of directors (the “Company Voting Stock”); (ii) the closing of a sale or
other conveyance of all or substantially all of the assets of the Company; or

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(iii) the effective
time of any merger, share exchange, consolidation, or other business combination involving the
Company if immediately after such transaction persons who hold a majority of the outstanding voting
securities entitled to vote generally in the election of directors of the surviving entity (or the
entity owning 100% of such surviving entity) are not persons who, immediately prior to such
transaction, held the Company Voting Stock; provided, however, that a Change in
Control shall not include a public offering of capital stock of the Company; and provided,
further, that for purposes of any Award or subplan that constitutes a “nonqualified
deferred compensation plan,” within the meaning of Code section 409A, the Administrator, in its
discretion, may specify a different definition of Change in Control in order to comply with the
provisions of Code section 409A. For purposes of this Section 2(e), a “Person” means any
individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the
Company and by entities controlled by the Company or an underwriter of the Common Stock in a
registered public offering.

     (f) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

     (g) “Common Stock” means shares of common stock of the Company, par value of $.0001 per share.

     (h) “Fair Market Value” means, with respect to a share of the Company’s Common Stock for any
purpose on a particular date, the value determined by the Administrator in good faith. However, if
the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
as amended, and listed for trading on a national exchange or market, “Fair Market Value” means, as
applicable, (i) either the closing price or the average of the high and low sale price on the
relevant date, as determined in the Administrator’s discretion, quoted on the New York Stock
Exchange, the American Stock Exchange, or the Nasdaq National Market; (ii) the last sale price on
the relevant date quoted on the Nasdaq SmallCap Market; (iii) the average of the high bid and low
asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the
National Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s
discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the
closing bid and asked prices on the relevant date furnished by a professional market maker for the
Common Stock, or by such other source, selected by the Administrator. If no public trading of the
Common Stock occurs on the relevant date but the shares are so listed, then Fair Market Value shall
be determined as of the next preceding date on which trading of the Common Stock does occur. For
all purposes under this Plan, the term “relevant date” as used in this Section 2(h) means either
the date as of which Fair Market Value is to be determined or the next preceding date on which
public trading of the Common Stock occurs, as determined in the Administrator’s discretion.

     (i) “Grant Agreement” means a written document memorializing the terms and conditions of an
Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.

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3. Administration

     (a) Administration of the Plan. The Plan shall be administered by the Board or by such
committee or committees as may be appointed by the Board from time to time. To the extent allowed
by applicable state law, the Board by resolution may authorize an officer or officers to grant
Awards (other than Stock Awards) to other officers and employees of the Company and its Affiliates,
and, to the extent of such authorization, such officer or officers shall be the Administrator.

     (b) Powers of the Administrator. The Administrator shall have all the powers vested in it by
the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to
grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish
programs for granting Awards. The Administrator shall have full power and authority to take all
other actions necessary to carry out the purpose and intent of the Plan, including, but not limited
to, the authority to: (i) determine the eligible persons to whom, and the time or times at which
Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the
number of shares to be covered by or used for reference purposes for each Award; (iv) impose such
terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem
appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of
outstanding Awards and substitute new Awards (provided however, that, except as provided in Section
6 or 7(d) of the Plan, any modification that would materially adversely affect any outstanding
Award shall not be made without the consent of the holder); (vi) accelerate or otherwise change the
time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in
whole or in part, of any restriction or condition with respect to such Award, including, but not
limited to, any restriction or condition with respect to the vesting or exercisability of an Award
following termination of any grantee’s employment or other relationship with the Company; (vii)
establish objectives and conditions, if any, for earning Awards and determining whether Awards will
be paid with respect to a performance period; and (viii) for any purpose, including but not limited
to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the
regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer
or terminate sub-plans, and prescribe, amend and rescind rules and regulations relating to such
sub-plans. The Administrator shall have full power and authority, in its sole and absolute
discretion, to administer, construe and interpret the Plan, Grant Agreements and all other
documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and
interpret such rules, regulations, agreements, guidelines and instruments for the administration of
the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and
to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any
Award in the manner and to the extent the Administrator shall deem it desirable to carry it into
effect.

     (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan (including
without limitation, determinations of the persons to receive Awards, the form, amount and timing of
such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such
Awards) need not be uniform and may be made by the Administrator selectively

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among persons who
receive, or are eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

     (d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator
shall be liable for any action taken or decision made in good faith relating to the Plan or any
Award thereunder.

     (e) Indemnification. To the maximum extent permitted by law and by the Company’s charter and
by-laws, the members of the Administrator shall be indemnified by the Company in respect of all
their activities under the Plan.

     (f) Effect of Administrator’s Decision. All actions taken and decisions and determinations
made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it
hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and
binding on all parties concerned, including the Company, its stockholders, any participants in the
Plan and any other employee, consultant, or director of the Company, and their respective
successors in interest.

4. Shares Available for the Plan. Subject to adjustments as provided in Section 7(d) of the Plan,
the shares of Common Stock that may be issued with respect to Awards granted under the Plan as of
any date shall not exceed (i) fifteen percent (15%) of the number of shares of Common Stock issued
and outstanding as of such date, including shares issued pursuant to the Plan, minus (ii) the
number of shares of Common Stock issued pursuant to the Plan or subject to outstanding Awards under
the Plan on such date, provided, however, that if any Award, or portion of an
Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash
without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or
canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to
the Company in connection with any Award (whether or not such surrendered shares were acquired
pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such
Award and the repurchased, surrendered and withheld shares shall thereafter not be taken into
account for purposes of this clause (ii) and shall be available for further Awards under the Plan.
Notwithstanding the foregoing, no more than an aggregate of 5,000,000 shares of Common Stock may be
issued pursuant to incentive stock options intended to qualify under section 422 of the Code. The
number of shares issuable pursuant to Awards under the Plan as described in this Section 4 shall be
reserved by the Company and subject to adjustments as provided in Section 7(d) of the Plan.

     In addition, subject to adjustments as provided in Section 7(d) of the Plan, the maximum
number of shares of Common Stock subject to Awards of any combination that may be granted during
any one fiscal year of the Company to any one individual under this Plan shall be limited to
5,200,000 shares. Such per-individual limit shall not be adjusted to effect a restoration of
shares of Common Stock with respect to which the related Award is terminated, surrendered or
canceled.

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5. Participation. Participation in the Plan shall be open to all employees, officers, and
directors of, and other individuals providing bona fide services to or for, the Company, or of any
Affiliate of the Company, as may be selected by the Administrator from time to time. The
Administrator may also grant Awards to individuals in connection with hiring, retention or
otherwise, prior to the date the individual first performs services for the Company or an
Affiliate, provided that such Awards shall not become vested or exercisable, and no shares shall be
issued to such individual, prior to the date the individual first commences performance of such
services.

6. Awards. The Administrator, in its sole discretion, establishes the terms of all Awards granted
under the Plan. Awards may be granted individually or in tandem with other types of Awards,
concurrently with or with respect to outstanding Awards. All Awards are subject to the terms and
conditions provided in the Grant Agreement. The Administrator may permit or require a recipient of
an Award to defer such individual’s receipt of the payment of cash or the delivery of Common Stock
that would otherwise be due to such individual by virtue of the exercise of, payment of, or lapse
or waiver of restrictions respecting, any Award. If any such payment deferral is required or
permitted, the Administrator shall, in its sole discretion, establish rules and procedures for such
payment deferrals.

     (a) Stock Options. The Administrator may from time to time grant to eligible participants
Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock
options; provided, however, that Awards of incentive stock options shall be limited
to employees of the Company or of any current or hereafter existing “parent corporation” or
“subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company
and any other individuals who are eligible to receive incentive stock options under the provisions
of Code section 422. Options intended to qualify as incentive stock options under Code section 422
must have an exercise price at least equal to Fair Market Value as of the date of grant, but
nonstatutory stock options may be granted with an exercise price less than Fair Market Value. No
stock option shall be an incentive stock option unless so designated by the Administrator at the
time of grant or in the Grant Agreement evidencing such stock option.

     (b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible
participants Awards of Stock Appreciation Rights (“SAR”). A SAR entitles the grantee to receive,
subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value
equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one
share of Common Stock over (B) the base price per share specified in the Grant Agreement, times
(ii) the number of shares specified by the SAR, or portion thereof, which is exercised. The base
price per share specified in the Grant Agreement shall not be less than the lower of the Fair
Market Value on the grant date or the exercise price of any tandem stock option Award to which the
SAR is related. Payment by the Company of the amount receivable upon any exercise of a SAR may be
made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as
determined in the sole discretion of the Administrator. If upon settlement of the exercise of a
SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of
shares shall be determined by dividing such portion by the Fair Market Value of a share of Common
Stock on the exercise date. No fractional shares shall be used for such payment and the
Administrator shall determine whether

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cash shall be given in lieu of such fractional shares or
whether such fractional shares shall be eliminated.

     (c) Stock Awards. The Administrator may from time to time grant restricted or unrestricted
stock Awards to eligible participants in such amounts, on such terms and conditions, and for such
consideration, including no consideration or such minimum consideration as may be required by law,
as it shall determine. A stock Award may be paid in Common Stock, in cash, or in a combination of
Common Stock and cash, as determined in the sole discretion of the Administrator.

     (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible
participants denominated in stock-equivalent units (“phantom stock”) in such amounts and on such
terms and conditions as it shall determine. Phantom stock units granted to a participant shall be
credited to a bookkeeping reserve account solely for accounting purposes and shall not require a
segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion
of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee
shall not have the rights of a stockholder with respect to any shares of Common Stock represented
by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee.

     (e) Performance Awards. The Administrator may, in its discretion, grant performance awards
which become payable on account of attainment of one or more performance goals established by the
Administrator. Performance awards may be paid by the delivery of Common Stock or cash, or any
combination of Common Stock and cash, as determined in the sole discretion of the Administrator.
Performance goals established by the Administrator may be based on the Company’s or an Affiliate’s
operating income or one or more other business criteria selected by the Administrator that apply to
an individual or group of individuals, a business unit, or the Company or an Affiliate as a whole,
over such performance period as the Administrator may designate.

     (f) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based
awards to eligible participants in such amounts, on such terms and conditions, and for such
consideration, including no consideration or such minimum consideration as may be required by law,
as it shall determine. Other stock-based awards may be denominated in cash, in Common Stock or
other securities, in stock-equivalent units, in stock appreciation units, in securities or
debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in
Common Stock or other securities, in cash, or in a combination of Common Stock or other securities
and cash, all as determined in the sole discretion of the Administrator.

7. Miscellaneous

     (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its
Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required
to be withheld in respect of Awards under the Plan no later than the date of the event

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creating the
tax liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such
tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award.
In the event that payment to the Company or its Affiliate of such tax obligations is made in shares
of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such
purposes and shall not exceed in amount the minimum statutory tax withholding obligation.

     (b) Loans. To the extent otherwise permitted by law, the Company or its Affiliate may make or
guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding
tax obligations.

     (c) Transferability. Except as otherwise determined by the Administrator, and in any event in
the case of an incentive stock option or a stock appreciation right granted with respect to an
incentive stock option, no Award granted under the Plan shall be transferable by a grantee
otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the
Administrator in accord with the provisions of the immediately preceding sentence, an Award may be
exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee
is under a legal disability, by the grantee’s guardian or legal representative.

     (d) Adjustments for Corporate Transactions and Other Events.

          (i) Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of,
or stock split or reverse stock split affecting, the Common Stock, (A) the maximum number of shares
of such Common Stock as to which Awards may be granted under this Plan as provided in Section 4 of
the Plan, and (B) the number of shares covered by and the exercise price and other terms of
outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event
unless the Board determines, at the time it approves such stock dividend, stock split or reverse
stock split, that no such adjustment shall be made. The Administrator may make adjustments, in its
discretion, to address the treatment of fractional shares and fractional cents that arise with
respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock
split.

          (ii) Non-Change in Control Transactions. Except with respect to the transactions set forth in
Section 7(d)(i), in the event of any change affecting the Common Stock, the Company or its
capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger,
consolidation or share exchange, other than any such change that is part of a transaction resulting
in a Change in Control of the Company, the Administrator, in its discretion and without the consent
of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind
of shares reserved for issuance or with respect to which Awards may be granted under the Plan as
provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not
limited to modifying the number, kind and price of securities subject to Awards.

          (iii) Change in Control Transactions. In the event of any transaction resulting in a Change
in Control of the Company, outstanding stock options and other Awards that are

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payable in or
convertible into Common Stock under this Plan will terminate upon the effective time of such Change
in Control unless provision is made in connection with the transaction for the continuation or
assumption of such Awards by, or for the substitution of the equivalent awards of, the surviving or
successor entity or a parent thereof. In the event of such termination, (A) the outstanding stock
options and other Awards that will terminate upon the effective time of the Change in Control shall
become fully vested immediately before the effective time of the Change in Control, and (B) the
holders of stock options and other Awards under the Plan will be permitted, immediately before the
Change in Control, to exercise or convert all portions of such stock options or other Awards under
the Plan that are then exercisable or convertible or which become exercisable or convertible upon
or prior to the effective time of the Change in Control. If, immediately before the Change in
Control, no stock of the Company is readily tradeable on an established securities market or
otherwise, and the vesting of an Award or Awards pursuant to this Section 7(d)(iii) would be
treated as a “parachute payment” (as defined in section 280G of the Code), then such Award or
Awards shall not vest unless the requirements of the shareholder approval exemption of section
280G(b)(5) of the Code have been satisfied with respect to such Award or Awards.

          (iv) Unusual or Nonrecurring Events. The Administrator is authorized to make, in its
discretion and without the consent of holders of Awards, adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting
the Company, or the financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Administrator determines that
such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

     (e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan
from time to time in substitution for awards held by employees, officers, consultants or directors
of entities who become or are about to become employees, officers, consultants or directors of the
Company or an Affiliate as the result of a merger or consolidation of the employing entity with the
Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock
of the employing entity. The terms and conditions of any substitute Awards so granted may vary
from the terms and conditions set forth herein to the extent that the Administrator deems
appropriate at the time of grant to conform the substitute Awards to the provisions of the awards
for which they are substituted.

     (f) Other Agreements. As a condition precedent to the grant of any Award under the Plan, the
exercise pursuant to such an Award, or to the delivery of certificates for shares issued pursuant
to any Award, the Administrator may require the grantee or the grantee’s successor or permitted
transferee, as the case may be, to become a party to a stock restriction agreement regarding the
Common Stock of the Company in such form(s) as the Administrator may determine from time to time.

     (g) Termination, Amendment and Modification of the Plan. The Board may terminate, amend or
modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board,
termination of the Plan shall not affect the Administrator’s ability to

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exercise the powers granted
to it hereunder with respect to Awards granted under the Plan prior to the date of such
termination.

     (h) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement
thereunder shall confer any right on an individual to continue in the service of the Company or
shall interfere in any way with the right of the Company to terminate such service at any time with
or without cause or notice and whether or not such termination results in (i) the failure of any
Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any
other adverse effect on the individual’s interests under the Plan.

     (i) Compliance with Securities Laws; Listing and Registration. If at any time the
Administrator determines that the delivery of Common Stock under the Plan is or may be unlawful
under the laws of any applicable jurisdiction, or Federal, state or foreign securities laws, the
right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be
suspended until the Administrator determines that such delivery is lawful. The Company shall have
no obligation to effect any registration or qualification of the Common Stock under Federal, state
or foreign laws.

     (j) The Company may require that a grantee, as a condition to exercise of an Award, and as a
condition to the delivery of any share certificate, make such written representations (including
representations to the effect that such person will not dispose of the Common Stock so acquired in
violation of Federal, state or foreign securities laws) and furnish such information as may, in the
opinion of counsel for the Company, be appropriate to permit the Company to issue the Common Stock
in compliance with applicable Federal, state or foreign securities laws. The stock certificates
for any shares of Common Stock issued pursuant to this Plan may bear a legend restricting
transferability of the shares of Common Stock unless such shares are registered or an exemption
from registration is available under the Securities Act of 1933, as amended, and applicable state
or foreign securities laws.

     (j) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company and a
grantee or any other person. To the extent that any grantee or other person acquires a right to
receive payments from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company.

     (k) Governing Law. The validity, construction and effect of the Plan, of Grant Agreements
entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made
by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all
persons having or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the State of Delaware
without regard to its conflict of laws principles.

     (l) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan
is adopted by the Board, subject to approval of the stockholders within twelve months before or
after such date. No Award shall be granted under the Plan after the close of business on

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the day
immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the
tenth anniversary of the date this Plan is approved by the stockholders. Subject to other
applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the
Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with
the Plan and the terms of such Awards.

PLAN APPROVAL

Date Approved by the Board: May 6, 2005

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APPENDIX A

PROVISIONS FOR CALIFORNIA RESIDENTS

With respect to Awards granted to California residents prior to a public offering of capital stock
of the Company that is effected pursuant to a registration statement filed with, and declared
effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended,
and only to the extent required by applicable law, the following provisions shall apply
notwithstanding anything in the Plan or a Grant Agreement to the contrary:

     1. Stock appreciation rights Awards under Section 6(b) of the Plan or phantom stock Awards
under Section 6(d) of the Plan, which may be settled in shares of Company stock, shall not be
issued to California residents.

     2. With respect to any Award granted in the form of a stock option pursuant to Section 6(a) of
the Plan:

          (a) The Award shall provide an exercise price which is not less than 85% of the Fair Market
Value of the underlying security at the time the option is granted, except that the price shall be
not less than 110% of the Fair Market Value in the case of any person who owns securities
possessing more than 10% of the total combined voting power (as defined in Section 194.5 of the
California Corporations Code) of all classes of securities of the issuer or its parent or
subsidiaries possessing voting power.

          (b) The exercise period shall be no more than 120 months from the date the option is granted.

          (c) The options shall be non-transferable other than by will, by the laws of descent and
distribution, or, if and to the extent permitted under the Grant Agreement, as permitted by Rule
701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).

          (d) The Award recipient shall have the right to exercise at the rate of at least 20% per year
over 5 years from the date the option is granted, subject to reasonable conditions such as
continued employment. However, in the case of an option granted to officers, directors, managers
or consultants of the Company or the issuer of the underlying security or any of its affiliates,
the option may become fully exercisable, subject to reasonable conditions such as continued
employment, at any time or during any period established by the issuer of the option or the issuer
of the underlying security or any of its affiliates.

          (e) Unless employment is terminated for “cause” as defined by applicable law, the terms of the
Plan or Grant Agreement, or a contract of employment, the right to exercise the option in the event
of termination of employment, to the extent that the Award recipient is entitled to exercise on the
date employment terminates, will be as follows:

               (1) At least 6 months from the date of termination if termination was caused by death or
disability.

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               (2) At least 30 days from the date of termination if termination was caused by other than
death or disability.

     3. With respect to an Award, granted pursuant to Section 6(c) of the Plan, that provides the
Award recipient the right to purchase stock:

          (a) The Award shall provide a purchase price which is not less than 85% of the Fair Market
Value of the security at the time the Award recipient is granted the right to purchase securities
under the Grant Agreement, or at the time the purchase is consummated; or, not less than 100% of
the Fair Market Value of the security either at the time the Award recipient is granted the right
to purchase securities under the Grant Agreement, or at the time the purchase is consummated, in
the case of any person who owns securities possessing more than 10% of the total combined voting
power (as defined in Section 194.5 of the California Corporations Code) of all classes of
securities of the issuer or its parent or subsidiaries possessing voting power.

          (b) The Award shall be non-transferable other than by will, by the laws of descent and
distribution, or, if and to the extent permitted under the Grant Agreement, as permitted by Rule
701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).

     4. The Plan shall have a termination date of not more than 10 years from the date the Plan is
adopted by the Board or the date the Plan is approved by the security holders, whichever is
earlier.

     5. Security holders representing a majority of the Company’s outstanding securities entitled
to vote must approve the Plan within 12 months before or after the date the Plan is adopted. Any
option exercised or any securities purchased before security holder approval is obtained must be
rescinded if security holder approval is not obtained within 12 months before or after the Plan is
adopted. Such securities shall not be counted in determining whether such approval is obtained.

     6. At the discretion of the Administrator, the Company may reserve to itself and/or its
assignee(s) in the Grant Agreement or any applicable stock restriction agreement a right to
repurchase securities held by an Award recipient upon such Award recipient’s termination of
employment at any time within 90 days after such Award recipient’s termination date (or in the case
of securities issued upon exercise of an option after the termination date, within 90 days after
the date of such exercise) for cash or cancellation of purchase money indebtedness, at:

          (a) no less than the Fair Market Value of such securities as of the date of the Award
recipient’s termination of employment, provided, that such right to repurchase securities
terminates when the Company’s securities have become publicly traded; or

          (b) the Award recipient’s original purchase price, provided, that such right to
repurchase securities at the original purchase price lapses at the rate of at least 20% of the
securities per year over 5 years from the date the option is granted (without respect to the date
the option was exercised or became exercisable).

The securities held by an officer, director, manager or consultant of the Company or an affiliate
may be subject to additional or greater restrictions.

2005 Stock Incentive Plan v03

Adopted by the Board of Directors May 6, 2005

B

 

     7. The Company will provide financial statements to each Award recipient annually during the
period such individual has Awards outstanding, or as otherwise required under Section 260.140.46 of
Title 10 of the California Code of Regulations. Notwithstanding the foregoing, the Company will
not be required to provide such financial statements to Award recipients when issuance is limited
to key employees whose services in connection with the Company assure them access to equivalent
information.

     8. The Company will comply with Section 260.140.1 of Title 10 of the California Code of
Regulations with respect to the voting rights of Common Stock and similar equity securities.

     9. The Plan is intended to comply with Section 25102(o) of the California Corporations Code.
Any provision of this Plan which is inconsistent with Section 25102(o), including without
limitation any provision of this Plan that is more restrictive than would be permitted by Section
25102(o) as amended from time to time, shall, without further act or amendment by the Board, be
reformed to comply with the provisions of Section 25102(o). If at any time the Administrator
determines that the delivery of Common Stock under the Plan is or may be unlawful under the laws of
any applicable jurisdiction, or federal or state securities laws, the right to exercise an Award or
receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator
determines that such delivery is lawful. The Company shall have no obligation to effect any
registration or qualification of the Common Stock under federal or state laws.

2005 Stock Incentive Plan v03

Adopted by the Board of Directors May 6, 2005

Cexv10w5

 

EXHIBIT 10.5

Grant No.: _________________

GLOBAL SECURE CORP.

INCENTIVE STOCK OPTION NOTICE

     This Notice evidences the award of stock options (each, an “Option” or collectively, the
“Options”) that have been granted to you, [NAME], subject to the terms of the attached Incentive
Stock Option Agreement (the “Agreement”). The Options entitle you to purchase shares of common
stock, par value $0.0001 per share (“Common Stock”), of Global Secure Corp., a Delaware corporation
(the “Company”), under the GlobalSecure Holdings, Ltd. 2005 Stock Incentive Plan (the “Plan”). The
number of shares you may purchase and the exercise price at which you may purchase them are
specified below. This Notice constitutes part of and is subject to the terms and provisions of the
Agreement and the Plan, which are incorporated by reference herein.

Grant Date: [GRANT DATE]

Number of Shares: [NUMBER]

Exercise Price: [PRICE] per share

Expiration Date: The Options expire at 5:00 p.m. Eastern Time on the last business day coincident
with or prior to the 10th anniversary of the Grant Date (the “Expiration Date”), unless fully
exercised or terminated earlier.

Exercisability Schedule: Subject to the terms and conditions described in the Agreement, the
Options become exercisable in accordance with the schedule below:

INSERT SCHEDULE

Acceleration Events: The extent to which you may purchase shares under the Options may be
accelerated in the following circumstances:

· If your Service with the Company is terminated coincident with or within one year
following a Change in Control either by the Company or its successor without Cause or by you
for Good Reason, 25% of the Options that had not yet become exercisable as of the date of
termination will immediately become exercisable.

· If, before any Options have become exercisable, your Service with the Company terminates
as a result of your Total and Permanent Disability or death, 25% of the Options that had not
yet become exercisable will become exercisable upon your termination.

	 	 	 	 	 
	 	 	GLOBAL SECURE CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 

 

Grant No.: _________________

Incentive Stock Option Agreement

Under The

GlobalSecure Holdings, Ltd. 2005 Stock Incentive Plan

     1. Terminology. Capitalized terms used in this Agreement and not defined in context
are defined in the correlating Stock Option Notice and/or the Glossary at the end of the Agreement.

     2. Exercise of Options.

          (a) Exercisability. The Options will become exercisable in accordance with the
Exercisability Schedule set forth in the Stock Option Notice, so long as you are in the Service of
the Company from the Grant Date through the applicable exercisability dates. None of the Options
will become exercisable after your Service with the Company ceases, unless the Stock Option Notice
provides otherwise with respect to exercisability that arises as a result of your cessation of
Service.

          (b) Right to Exercise. You may exercise the Options, to the extent exercisable, at
any time on or before 5:00 p.m. Eastern Time on the Expiration Date or the earlier termination of
the Options, unless otherwise provided under applicable law. Section 3 below describes certain
limitations on exercise of the Options that apply in the event of your death, Total and Permanent
Disability, or termination of Service. The Options may be exercised only in multiples of whole
Shares and may not be exercised at any one time as to fewer than one hundred Shares (or such lesser
number of Shares as to which the Options are then exercisable). No fractional Shares will be
issued under the Options.

          (c) Exercise Procedure. In order to exercise the Options, you must provide the
following items to the Secretary of the Company or his or her delegate before the expiration or
termination of the Options:

	 	(i)	 	notice, in such manner and form as the
Administrator may require from time to time, specifying the number of
Shares to be purchased under the Options;
	 
	 	(ii)	 	full payment of the Exercise Price for the
Shares or properly executed, irrevocable instructions, in such manner
and form as the Administrator may require from time to time, to
effectuate a broker-assisted cashless exercise, each in accordance
with Section 2(d) of this Agreement; and
	 
	 	(iii)	 	an executed copy of any other agreements
requested by the Administrator pursuant to Section 2(e) of this
Agreement.

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

1

 

Grant No.: _________________

An exercise will not be effective until the Secretary of the Company or his or her delegate
receives all of the foregoing items.

          (d) Method of Payment. You may pay the Exercise Price by:

	 	(i)	 	delivery of cash, certified or cashier’s
check, money order or other cash equivalent acceptable to the
Administrator in its discretion;
	 
	 	(ii)	 	a broker-assisted cashless exercise in
accordance with Regulation T of the Board of Governors of the Federal
Reserve System through a brokerage firm approved by the
Administrator;
	 
	 	(iii)	 	subject to such limits as the
Administrator may impose from time to time, tender (via actual
delivery or attestation) to the Company of other shares of Common
Stock of the Company which have a Fair Market Value on the date of
tender equal to the Exercise Price, provided that
tender of such shares will not result in the Company having to record
a charge to earnings under United States generally accepted
accounting principles then applicable to the Company;
	 
	 	(iv)	 	any other method approved by the
Administrator; or
	 
	 	(v)	 	any combination of the foregoing.

          (e) Agreement to Execute Other Agreements. You agree to execute, as a condition
precedent to the exercise of the Options and at any time thereafter as may reasonably be requested
by the Administrator, a Stock Restriction Agreement substantially in the form, and containing the
terms and provisions, of the Stock Restriction Agreement attached hereto as Exhibit A, with
respect to any shares you acquire pursuant to this Agreement; provided, however,
that execution of the Stock Restriction Agreement will not be required upon any exercise that
occurs after the closing of the first public offering of capital stock of the Company that is
effected pursuant to a registration statement filed with, and declared effective by, the Securities
and Exchange Commission under the Securities Act of 1933 or, if later, the expiration of any market
stand-off agreement that applies to other stockholders of the Company respecting such public
offering of capital stock.

          (f) Issuance of Shares upon Exercise. As soon as practicable after exercise of the
Options, the Company will deliver a share certificate to you, or deliver Shares electronically or
in certificate form to your designated broker on your behalf, for the Shares issued upon exercise.
Any share certificates delivered will, unless the Shares are registered or an exemption from registration is available under applicable federal and
state law, bear a legend restricting transferability of such Shares and referencing any applicable
Stock Restriction Agreement.

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

2

 

Grant No.: _________________

     3. Termination of Service.

          (a) Termination of Unexercisable Options. If your Service with the Company ceases for
any reason, the Options that are then unexercisable, after giving effect to any exercise
acceleration provisions set forth on the Stock Option Notice, will terminate immediately upon such
cessation.

          (b) Exercise Period Following Termination of Service. If your Service with the
Company ceases for any reason other than discharge for Cause, the Options that are then
exercisable, after giving effect to any exercise acceleration provisions set forth on the Stock
Option Notice, will terminate upon the earliest of:

     (i) the expiration of 90 days following such cessation, if your Service ceases
on account of (1) your termination by the Company other than a discharge for Cause,
or (2) your voluntary termination other than for Total and Permanent Disability or
death;

     (ii) the expiration of 12 months following such cessation, if your Service
ceases on account of your Total and Permanent Disability or death;

     (iii) the expiration of 12 months following your death, if your death occurs
during the periods described in clauses (i) or (ii) of this Section 3(b), as
applicable; or

     (iv) the Expiration Date.

In the event of your death, the exercisable Options may be exercised by your executor, personal
representative, or the person(s) to whom the Options are transferred by will or the laws of descent
and distribution.

          (c) Misconduct. The Options will terminate in their entirety, regardless of whether
the Options are then exercisable, immediately upon your discharge from Service for Cause, or upon
your commission of any of the following acts during the exercise period following your termination
of Service: (i) fraud on or misappropriation of any funds or property of the Company, or (ii) your
breach of any provision of any employment, non-disclosure, non-competition, non-solicitation,
assignment of inventions, or other similar agreement executed by you for the benefit of the
Company, as determined by the Administrator, which determination will be conclusive.

          (d) Changes in Status. If you cease to be a “common law employee” of the Company but
you continue to provide bona fide services to the Company following such cessation in a different
capacity, including without limitation as a director, consultant or independent contractor, then a termination of Service shall not be deemed to
have occurred for purposes of this Section 3 upon such change in capacity. Notwithstanding the
foregoing, the Options shall not be treated as incentive stock options within the meaning of Code
section 422 with respect to any exercise that occurs more

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

3

 

Grant No.: _________________

than three months after such cessation of the common law employee relationship (except as otherwise permitted under Code section 421 or 422).
In the event that your Service is with a business, trade or entity that, after the Grant Date,
ceases for any reason to be part or an Affiliate of the Company, your Service will be deemed to
have terminated for purposes of this Section 3 upon such cessation if your Service does not
continue uninterrupted immediately thereafter with the Company or an Affiliate of the Company.

     4. Market Stand-Off Agreement. You agree that following the effective date of a
registration statement of the Company filed under the Securities Act of 1933, you, for the duration
specified by and to the extent requested by the Company and an underwriter of Common Stock or other
securities of the Company, shall not offer, sell, contract to sell, pledge or otherwise dispose of,
directly or indirectly, any equity securities of the Company, or any securities convertible into or
exchangeable or exercisable for such securities, enter into a transaction which would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any
of the economic consequences of ownership of such securities, whether any such aforementioned
transaction is to be settled by delivery of such securities or other securities, in cash or
otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition,
or to enter into any such transaction, swap, hedge or other arrangement, in each case during the
seven days prior to and the 180 days after the effectiveness of any underwritten offering of the
Company’s equity securities (or such longer or shorter period as may be requested in writing by the
managing underwriter and agreed to in writing by the Company) (the “Market Stand-Off Period”),
except as part of such underwritten registration if otherwise permitted. In addition, you agree to
execute any further letters, agreements and/or other documents requested by the Company or its
underwriters that are consistent with the terms of this Section 4. The Company may impose
stop-transfer instructions with respect to securities subject to the foregoing restrictions until
the end of such Market Stand-Off Period.

     5. Nontransferability of Options. These Options are nontransferable otherwise than by
will or the laws of descent and distribution and during your lifetime, the Options may be exercised
only by you or, during the period you are under a legal disability, by your guardian or legal
representative. Except as provided above, the Options may not be assigned, transferred, pledged,
hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be
subject to execution, attachment or similar process.

     6. Qualified Nature of the Options.

          (a) General Status. The Options are intended to qualify as incentive stock option
within the meaning of Code section 422 (“Incentive Stock Option”), to the fullest extent permitted
by Code section 422, and this Agreement shall be so construed. The Company, however, does not
warrant any particular tax consequences of the Options. Code section 422 provides limitations, not set forth in this Agreement, respecting
the treatment of the Options as Incentive Stock Options. You should consult with your personal tax
advisors in this regard.

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

4

 

Grant No.: _________________

          (b) Code Section 422(d) Limitation. Pursuant to Code section 422(d), the aggregate
fair market value (determined as of the Grant Date) of shares of Common Stock with respect to which
all Incentive Stock Options first become exercisable by you in any calendar year under the Plan or
any other plan of the Company (and its parent and subsidiary corporations, within the meaning of
Code section 424(e) and (f), as may exist from time to time) may not exceed $100,000 or such other
amount as may be permitted from time to time under Code section 422. To the extent that such
aggregate fair market value exceeds $100,000 or other applicable amount in any calendar year, such
stock options will be treated as nonstatutory stock options with respect to the amount of aggregate
fair market value thereof that exceeds the Code section 422(d) limit. For this purpose, the
Incentive Stock Options will be taken into account in the order in which they were granted. In
such case, the Company may designate the shares of Common Stock that are to be treated as stock
acquired pursuant to the exercise of Incentive Stock Options and the shares of Common Stock that
are to be treated as stock acquired pursuant to nonstatutory stock options by issuing separate
certificates for such shares and identifying the certificates as such in the stock transfer records
of the Company.

          (c) Significant Stockholders. Notwithstanding anything in this Agreement or the Stock
Option Notice to the contrary, if you own, directly or indirectly through attribution, stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company
or of any of its subsidiaries (within the meaning of Code section 424(f)) on the Grant Date, then
the Exercise Price is the greater of (a) the Exercise Price stated on the Stock Option Notice or
(b) 110% of the Fair Market Value of the Common Stock on the Grant Date, and the Expiration Date is
the last business day prior to the fifth anniversary of the Grant Date.

     7. Withholding of Taxes. At the time the Options are exercised, in whole or in part,
or at any time thereafter as requested by the Company, you hereby authorize withholding from
payroll or any other payment of any kind due to you and otherwise agree to make adequate provision
for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in
connection with the Options (including upon a disqualifying disposition within the meaning of Code
section 421(b)). The Company may require you to make a cash payment to cover any withholding tax
obligation as a condition of exercise of the Options or issuance of share certificates representing
Shares.

     The Administrator may, in its sole discretion, permit you to satisfy, in whole or in part, any
withholding tax obligation which may arise in connection with the Options either by electing to
have the Company withhold from the Shares to be issued upon exercise that number of Shares, or by
electing to deliver to the Company already-owned shares, in either case having a Fair Market Value
equal to the amount necessary to satisfy the statutory minimum withholding amount due.

     8. Adjustments. The Administrator may make various adjustments to your Options,
including adjustments to the number and type of securities subject to the Options and the Exercise
Price, in accordance with the terms of the Plan. In the event of any transaction resulting in a
Change in Control (as defined in the Plan) of the Company, the outstanding Options will terminate
upon the effective time of such Change in Control

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

5

 

Grant No.: _________________

unless provision is made in connection with the transaction for the continuation or assumption of such Options by, or for the substitution of the
equivalent awards of, the surviving or successor entity or a parent thereof. In the event of such
termination, you will be permitted, immediately before the Change in Control, to exercise or
convert all portions of such Options that are then exercisable or which become exercisable upon or
prior to the effective time of the Change in Control.

     9. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this
Agreement will alter your at-will or other employment status or other service relationship with the
Company, nor be construed as a contract of employment or service relationship between you and the
Company, or as a contractual right for you to continue in the employ of, or in a service
relationship with, the Company for any period of time, or as a limitation of the right of the
Company to discharge you at any time with or without Cause or notice and whether or not such
discharge results in the failure of any of the Options to become exercisable or any other adverse
effect on your interests under the Plan.

     10. No Rights as a Stockholder. You shall not have any of the rights of a stockholder
with respect to the Shares until such Shares have been issued to you upon the due exercise of the
Options. No adjustment will be made for dividends or distributions or other rights for which the
record date is prior to the date such Shares are issued.

     11. The Company’s Rights. The existence of the Options shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company, or any issue of bonds, debentures,
preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the
Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale
or transfer of all or any part of the Company’s assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

     12. Entire Agreement. This Agreement, together with the correlating Stock Option
Notice and the Plan, contain the entire agreement between you and the Company with respect to the
Option. Any oral or written agreements, representations, warranties, written inducements, or other
communications made prior to the execution of this Agreement with respect to the Options shall be
void and ineffective for all purposes.

     13. Amendment. This Agreement may be amended from time to time by the Administrator
in its discretion; provided, however, that this Agreement may not be modified in a
manner that would have a materially adverse effect on the Options or Shares as determined in the discretion of the Administrator, except as provided in the Plan or
in a written document signed by you and the Company.

     14. Conformity with Plan. This Agreement is intended to conform in all respects with,
and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this
Agreement and the Plan shall be resolved in accordance with

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

6

 

Grant No.: _________________

the terms of the Plan. In the event of any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall
govern. A copy of the Plan is provided to you with this Agreement.

{Glossary begins on next page}

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

7

 

GLOSSARY

          (a) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, Global Secure Corp. For this purpose, “control”
means ownership of 50% or more of the total combined voting power or value of all classes of stock
or interests of the entity.

          (b) “Cause” unless otherwise defined in an employee’s employment agreement, in which case such
definition shall take precedence, has the meaning ascribed to such term or words of similar import
in your written employment or service contract with the Company as in effect at the time at issue
and, in the absence of such agreement or definition, means your (i) conviction of, or plea of nolo
contendere to, a felony or crime involving moral turpitude; (ii) fraud on or misappropriation of
any funds or property of the Company, any affiliate, customer or vendor; (iii) personal dishonesty,
incompetence, willful misconduct, willful violation of any law, rule or regulation (other than
minor traffic violations or similar offenses) or breach of fiduciary duty which involves personal
profit; (iv) willful misconduct in connection with your duties or willful failure to perform your
responsibilities in the best interests of the Company; (v) illegal use or distribution of drugs;
(vi) violation of any Company rule, regulation, procedure or policy; or (vii) breach of any
provision of any employment, non-disclosure, non-competition, non-solicitation or other similar
agreement executed by you for the benefit of the Company, all as determined by the Administrator,
which determination will be conclusive.

          (c) “Company” includes Global Secure Corp. and its Affiliates, except where the context
otherwise requires. For purposes of determining whether a Change in Control has occurred, Company
shall mean only Global Secure Corp.

          (e) “Fair Market Value” of a share of Common Stock generally means either the closing price or
the average of the high and low sale price per share of Common Stock on the relevant date, as
determined in the Administrator’s discretion, as reported by the principal market or exchange upon
which the Common Stock is listed or admitted for trade. Refer to the Plan for a detailed
definition of Fair Market Value, including how Fair Market Value is determined in the event that no
sale of Common Stock is reported on the relevant date.

          (f) “Good Reason” has the meaning ascribed to such term or words of similar import in your
written employment or service contract with the Company as in effect at the time at issue. In the
absence of such agreement or definition, Good Reason means any requirement that the you relocate,
by more than 100 miles, the principal location from which you perform services for the Company as
compared to such location immediately prior to the occurrence of the Change in Control.

          (g) “Service” means your employment or other service relationship with the Company.

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

 

 

Grant No.: _________________

          (h) “Shares” mean the shares of Common Stock underlying the Options.

          (i) “Stock Option Notice” means the written notice evidencing the award of the Options that
correlates with and makes up a part of this Agreement.

          (j) “Total and Permanent Disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than twelve months. The Administrator may require such proof of Total and Permanent
Disability as the Administrator in its sole discretion deems appropriate and the Administrator’s
good faith determination as to whether you are totally and permanently disabled will be final and
binding on all parties concerned.

          (k) “You”; “Your”. “You” or “your” means the recipient of the award of Options as reflected
on the Stock Option Notice. Whenever the Agreement refers to “you” under circumstances where the
provision should logically be construed, as determined by the Administrator, to apply to your
estate, personal representative, or beneficiary to whom the Options may be transferred by will or
by the laws of descent and distribution, the word “you” shall be deemed to include such person.

[End of Glossary]

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

9

 

Grant No.: _________________

EXERCISE FORM

Administrator of 2005 Stock Incentive Plan

c/o Office of the Corporate Secretary

Global Secure Corp.

2600 Virginia Ave., NW

Suite 600

Washington, DC 20037

Gentlemen:

     I hereby exercise the Options granted to me on                                                             ,                     , by Global Secure
Corp. (the “Company”), subject to all the terms and provisions of the applicable grant agreement
and of the GlobalSecure Holdings, Ltd. 2005 Stock Incentive Plan (the “Plan”), and notify you of my
desire to purchase
                                        
 shares of Common Stock of the Company at a price of $                                        
per share pursuant to the exercise of said Options.

     [Add the following if exercise occurs while the Company is privately held:

     This will confirm my understanding with respect to the shares to be issued to me by reason of
this exercise of the Options (the shares to be issued pursuant hereto shall be collectively
referred to hereinafter as the “Shares”) as follows:

          (a) I am purchasing the Shares for my own account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Shares in violation of the Securities Act
of 1933 (the “Securities Act”), or any rule or regulation under the Securities Act.

          (b) I understand that the Shares are being issued without registration under the Securities
Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is
based in part on the above representation. I also understand that the Company is not obligated to
comply with the registration requirements of the Securities Act or with the requirements for an
exemption under Regulation A under the Securities Act for my benefit.

          (c) I have had such opportunity as I deemed adequate to obtain from representatives of the
Company such information as is necessary to permit me to evaluate the merits and risks of my
investment in the Company.

          (d) I have sufficient experience in business, financial and investment matters to be able to
evaluate the risks involved in the purchase of the Shares and to make an informed investment
decision with respect to such purchase.

          (e) I can afford a complete loss of the value of the Shares and am able to bear the economic
risk of holding such Shares for an indefinite period.

          (f) I understand that (i) the Shares have not been registered under the Securities Act and are
“restricted securities” within the meaning of Rule 144 under the Securities Act; (ii) the Shares
cannot be sold, transferred or otherwise disposed of unless they are

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

10

 

Grant No.: _________________

subsequently registered under the Securities Act or an exemption from registration is then
available and, therefore, they may need to be held indefinitely; and (iii) there is now no
registration statement on file with the Securities and Exchange Commission with respect to any
stock of the Company and the Company has no obligation or current intention to register the Shares
under the Securities Act. As a condition to any transfer of the Shares, I understand that the
Company may require an opinion of counsel satisfactory to the Company to the effect that such
transfer does not require registration under the Securities Act or any state securities law.

          (g) I understand that the certificates for the Shares to be issued to me will bear a legend
substantially as follows:

The shares of stock represented by this certificate are subject to restrictions on
transfer, an option to purchase and a market stand-off agreement set forth in a
certain Stock Restriction Agreement between the corporation and the registered owner
of this certificate (or his predecessor in interest), and no transfer of such shares
may be made without compliance with that Agreement. A copy of that Agreement is
available for inspection at the office of the corporation upon appropriate request and
without charge.

The securities represented by this stock certificate have not been registered under
the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State
Acts”), and shall not be sold, pledged, hypothecated, donated, or otherwise
transferred (whether or not for consideration) by the holder except upon the issuance
to the corporation of a favorable opinion of its counsel and/or submission to the
corporation of such other evidence as may be satisfactory to counsel for the
corporation, to the effect that any such transfer shall not be in violation of the Act
and the State Acts.

The Company will issue appropriate stop transfer instructions to its transfer agent.

          (h) I am a party to a grant agreement and a stock restriction agreement with the Company,
pursuant to which I have agreed to certain restrictions on the transferability of the Shares and
other matters relating thereto.]

Total Amount Enclosed: $                                        

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Optionee)
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Received by Global Secure Corp. on
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	,	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Global Secure Corp.

Incentive Stock Option Agreement

2005 Stock Incentive Plan

[NAME]

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]