Document:

Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

FORM OF SERVICES AGREEMENT

Services Agreement (“Agreement”) made as of July
 _____, 2011 by and between Homeland
Security Capital Corporation, a Delaware corporation (“Provider”), and                     -_, a
                     corporation (“Company”).

PREAMBLE

Company desires to obtain services from Provider and Provider is willing to furnish, or make
available, such services to Company. Provider and Company desire to set forth and define the basis
for providing such services.

NOW THEREFORE, the parties agree as follows:

1. Services. Commencing with the execution of this Agreement, Provider will provide,
or otherwise make available, to Company various advisory services, including government and general
sales and marketing assistance, financial oversight, strategic guidance and administrative
assistance. Exhibit A to this Agreement sets forth the services which will be provided to
Company in consideration of the monthly fee set forth in Section 2 hereof. Additional services
provided to and requested by Company from Provider that are not covered by this Agreement
(“Non-Covered Services”) will be charged to Company at Provider’s actual cost thereof or if
provided by personnel employed by Provider, at an appropriate allocated cost basis.

2. Monthly Fee. For performing the services set forth on Exhibit A, Company
will pay Provider a monthly fixed fee of Twenty Five Thousand Dollars ($25,000) (“Management
Fee”), payable on the 1st day of the month in which services
are to be provided; provided, however, that for any month where a net loss is
recorded on Company’s month-end statement of operation prepared in accordance with U.S. generally
accepted accounting principles, Provider shall forego its right to the Management Fee for that
month, and any portions of such Management Fee that Company has already paid to Provider shall be
credited against future payments to be paid by Company pursuant to Sections 2 and 3 of this
Agreement. Provider must obtain the prior consent of the Chief Executive Officer of Company (which
consent shall not be unreasonably withheld or delayed) before incurring any additional
out-of-pocket costs and expenses; provided, however, that such consent shall not be
required and Company shall reimburse Provider for all reasonable expenses (i) incurred in
connection with Provider’s out-of-pocket travel and out-of-pocket expenses incurred when traveling
to Company, and (ii) in connection with the accounting, compliance and annual audit third party
costs paid for by Provider on behalf of Company.

3. Payment for Non-Covered Services. Prior to providing Non-Covered Services,
Provider shall request the written approval from Company’s Chief Executive Officer for the
applicable charges in connection with the Non-Covered Services. All such approved charges shall be
payable within 30 days from the date of billing. Provider shall not provide any Non-Covered
Services for which written approval was not granted. It is expressly understood and agreed that
Provider may defer billing for a period of up to 60 days and not render bills periodically. The
failure to render periodic bills or to determine such charges periodically will not constitute a
waiver of Company’s obligations to pay for such services within 30 days after
billing. Provider, in its sole discretion, may prospectively or retroactively waive, in whole
or in part, any payments due or to become due hereunder or charge a lesser amount than required
hereby without adversely affecting its right to payment for services for which it has rendered
bills or to thereafter increase the charges to an amount not to exceed the amount provided for
herein.

 

 

 

4. Representations and Warranties.

(a) Provider hereby represents and warrants to Company:

(i) Provider has full legal capacity to enter into this Agreement, and this Agreement has been
validly executed and delivered by Provider and is binding and enforceable against Provider in
accordance with the terms hereof; and

(ii) The execution and delivery by Provider of this Agreement, and the performance by Provider
of Provider’s obligations herein do not require the consent, authorization or approval of any
person, entity or administrative agency or governmental body.

(b) Company hereby represents and warrants to Provider:

(i) Company has full legal capacity to enter into this Agreement, and this Agreement has been
validly executed and delivered by Company and is binding and enforceable against Company in
accordance with the terms hereof; and

(ii) The execution and delivery by Company of this Agreement, and the performance by Company
of Company’s obligations herein do not require the consent, authorization or approval of any
person, entity or administrative agency or governmental body

5. Miscellaneous.

(a) Nothing contained herein shall be construed to relieve the directors or officers of either
party from the performance of their respective duties or to limit the exercise of their powers in
accordance with the respective certificates of incorporation and bylaws of the parties and any
applicable provisions of the General Corporation Law of the State of Delaware. It is understood and
agreed that the activities of the parties hereunder shall at all times be subject to the control
and direction of their respective boards of directors and officers.

(b) Neither Provider, its affiliates or subsidiary companies, nor any of their respective
officers, directors or employees shall be liable to Company solely based upon the services provided
to Company or its subsidiaries by third parties pursuant to this Agreement. The provisions of this
Agreement are for the sole benefit of Provider and Company and shall not, except to the extent
otherwise expressly stated herein, inure to the benefit of any third party.

 

 

 

(c) The terms of this Agreement shall commence on the 1st day of the month ninety
(90) days after the date of the execution hereof and shall terminate on the third anniversary of
this Agreement; provided, however, that:

(i) If C. Thomas McMillen ceases to be an employee of Provider, in the month
immediately following such cessation of employment, the Management Fee will be reduced from
$25,000 to $12,500;

(ii) Company may terminate this Agreement upon written notice of termination specifying
breach effective immediately upon the receipt by Provider of such notice if Provider commits
a material breach of this Agreement and fails to cure such material breach within thirty
(30) days after its receipt from Company of written notice describing such breach; and

(iii) Company may terminate this Agreement upon simple written notice if Provider
becomes insolvent or subject to any bankruptcy, insolvency, receivership or similar
proceeding that is not dismissed within one-hundred and twenty (120) days.

(d) This Agreement shall not be assignable except with the prior written consent of the
parties hereto.

(e) Neither party shall be liable to the other party or to third parties for the acts or
omissions of the other party. Each party shall indemnify, assume the defense of (if requested), and
hold harmless the other party and its directors, officers, employees, and agents from every claim,
loss, damage, injury, expense (including reasonable attorney’s fees with counsel of the indemnified
party’s choice), judgment, and liability of every kind, nature, and description
(“Liability”) arising in whole or in part from the indemnifying party’s breach of this
Agreement, or the indemnifying party’s negligent, fraudulent, or illegal acts or omissions except,
as to the party requesting indemnification, to the extent such Liability results in whole or in
part from the breach of this Agreement by the party requesting indemnification or the
unauthorized, negligent, fraudulent, or illegal act or omission of the party requesting
indemnification.

(f) This Agreement shall be governed and construed under the laws of the State of Delaware
applicable to agreements made and to be performed solely within such state, without application of
the doctrine of conflict of laws. Any dispute, controversy or question of interpretation arising
under, out of, in connection with or in relation to this Agreement or any amendments hereof, or any
breach or default hereunder, shall be litigated exclusively in the state or federal courts of
competent jurisdiction located in the State of Delaware. Each of the parties hereby irrevocably
submits to the jurisdiction of any court of competent jurisdiction located in the State of
Delaware.

[Signature Page to Follow]

 

 

 

IN WITNESS WHEREOF, the parties have caused this Services Agreement to be executed by their
duly authorized representatives as of the day and year first above written.

	 	 	 	 	 
	 	HOMELAND SECURITY CAPITAL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:Exhibit 10.2

Exhibit 10.2

FORM OF TAX SHARING AGREEMENT

This Tax Sharing Agreement (this “Agreement”) is made as of the
 _____ 
day of
 _____ 
2011 (the
“Effective Date”) by and between                
                      
   , a                   
                
       corporation (“Subsidiary”), and
Homeland Security Capital Corporation, a Delaware corporation (“Parent”).

BACKGROUND

The background of this Agreement is as follows:

A. The Subsidiary is indirectly majority owned by Parent.

B. Subsidiary is a member of an “affiliated group,” as defined in §1504 of the Internal
Revenue Code of 1986, as amended from time to time and the regulations thereunder (the “Code”), of
which Parent is the common parent corporation.

C. Parent and Subsidiary desire that Subsidiary be included in the consolidated federal income
tax return of Parent.

D. Parent and Subsidiary wish to utilize the Tax Attributes (as defined herein) of Parent to
offset certain liabilities of the Combined Group (as defined herein) and to strengthen the
Subsidiary’s balance sheet.

E. A purpose of this Agreement is to set forth the obligations to be fulfilled by Subsidiary
under the consolidated reporting rules of the Code, as directed by Parent, including without
limitation the provisions of Treas. Regs. §1.1 502-33(d)(2) and § 1.1 552-1(b)(2), and to provide
for specific treatment by Subsidiary to Parent of certain Tax Attributes (as defined herein) of
Parent utilized by the Subsidiary on the Consolidated Return (as defined herein). An additional
purpose of this Agreement is to set forth the obligation of Subsidiary to bear the full burden of
its state tax liabilities, if any, to the extent that Parent is required to pay state taxes based
on Subsidiary’s income.

F. The parties intend that this Agreement shall terminate on the earlier of (i) the mutual
written agreement of the parties, (ii) if either party ceases to be a member of the same
Consolidated Group, and (iii) if the Consolidated Group to which Parent and Subsidiary belong
elects not to file a Consolidated Return for any taxable year.

RECITAL

To the extent operating profits of Subsidiary provide for the use of and viability of Parent’s
Tax Attributes, this Agreement will set forth the terms and conditions of utilization of the Tax
Attributes.

 

 

 

AGREEMENT

For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

1. This Agreement is to be effective beginning with Parent’s combined group tax reporting
commencing                     , 2011. The term of this Agreement shall continue until terminated in accordance
with the terms hereof.

2. Subsidiary agrees to comply with all requests of Parent in connection with this Agreement
and pursuant to the Consolidated Group reporting requirements of the Code.

3. Subsidiary agrees to execute or cause the execution of any further documentation, including
returns or elections, necessary or appropriate in connection with or pursuant to the terms of this
Agreement.

4. Not later than fifteen (15) days following the filing of the Company’s Quarterly or Annual
Report on Form 10-Q or Form 10-K, respectively, Parent shall determine (and provide written notice
(the “Tax Notice”) to the Subsidiary of the aggregate amount of the Tax Attributes of Parent that
are utilized to offset income of the Subsidiary (the “Subsidiary Allocated Attributes”) as of the
end of such quarter and shall inform Subsidiary of such determination. The amount of the Subsidiary
Allocated Attributes shall be reflected in the intercompany accounts as an amount payable by
Subsidiary to Parent (on a dollar for dollar basis). Subsidiary agrees to pay in pro rata monthly
payments (as requested by Parent) all intercompany payables related to the Subsidiary Allocated
Attributes.

For any fiscal quarter beginning on or after the Effective Date, in the event of a change in
the treatment of any Tax Item of any member of the Consolidated Group as a result of a Final
Determination, Parent shall calculate the change to the Subsidiary’s Federal Income Tax and any
change to the Subsidiary Allocated Attributes, and such changes shall be properly reflected in the
intercompany accounts described in the preceding paragraph. Any change to the Subsidiary Allocated
Attributes shall be properly reflected in payments from Parent to Subsidiary, or from Subsidiary to
Parent, as the case may be.

To the extent Tax Attributes are determined and used by the Subsidiary, Parent will first
reduce any intercompany payables to the Subsidiary, and, to the extent a balance of Tax Attributes
remain, Parent, in light of the overall and singular interests and business circumstances of Parent
and Subsidiary, will either

(i) Reinvest the remaining Tax Attribute balance as Additional Paid In Capital to the
Subsidiary;

(ii) Cause payment of the remaining Tax Attribute balance to Parent, or

(iii) A combination of (i) and (ii) above.

Parent and Subsidiary will review on a quarterly basis the treatment of the Tax Attributes.

 

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5. The following capitalized terms used in this Agreement will have the following meanings:

“Combined Return” means any Tax Return (other than for Federal Income Taxes) filed on
a consolidated, combined (including nexus combination, worldwide combination, domestic combination,
line of business combination or any other form of combination), unitary or group relief basis for
the Consolidated Group.

“Consolidated Group” means the affiliated group of corporations (as defined in Section
1504(a) of the Code) of which Parent is the common parent corporation.

“Consolidated Return” means a Tax Return filed with respect to Federal Income Taxes
for the Consolidated Group.

“Federal Income Tax” means any Tax imposed under Subtitle A of the Code or any other
provision of United States Federal Income Tax law (including, without limitation, the Taxes imposed
by Sections 11, 55, 59A, and 1201(a) of the Code), and any interest, additions to Tax or penalties
applicable or related thereto.

“Final Determination” means the final resolution of any Tax (or other matter) for a
taxable period, including related interest or penalties, that, under applicable law, is not subject
to further appeal, review or modification through proceedings or otherwise, including (i) by the
expiration of a statute of limitations or a period for the filing of claims for refunds, amending
Tax Returns, appealing from adverse determinations, or recovering any refund (including by offset),
(ii) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which
has become final and unappealable, (iii) by a closing agreement or an accepted offer in compromise
under Section 7121 or 7122 of the Code, or comparable agreements under laws of other jurisdictions,
(iv) by execution of an Internal Revenue Service Form 870 or 870-AD, or by a comparable form under
the laws of other jurisdictions (excluding, however, with respect to a particular Tax Item for a
particular taxable period any such form that reserves (whether by its terms or by operation of law)
the right of the taxpayer to file a claim for refund and/or the right of the Tax Authority to
assert a further deficiency with respect to such Tax Item for such period), or (v) by any allowance
of a refund or credit, but only after the expiration of all periods during which such refund may be
adjusted.

“IRS” means the United States Internal Revenue Service or any successor thereto,
including, but not limited to, its agents, representatives, and attorneys.

“Tax Attribute” means (i) with respect to the Consolidated Return, a consolidated net
operating loss, a consolidated net capital loss, a consolidated unused investment credit, a
consolidated unused foreign tax credit, a consolidated excess charitable contribution, a U.S.
federal minimum tax credit or U.S. federal general business credit (but not tax basis or earnings
and profits) and (ii) any comparable Tax Item reflected on a Combined Return.

“Tax Authority” means a governmental authority (foreign or domestic) or any
subdivision, agency, commission or authority thereof or any quasi-governmental or private body
having jurisdiction over the assessment, determination, collection or imposition of any Tax
(including, without limitation, the IRS).

“Tax Item” means any item of income, gain, loss, deduction or credit, or other item
reflected on a Tax Return or any Tax Attribute.

 

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“Taxes” means all forms of taxation, whenever created or imposed, and whenever imposed
by a national, local, municipal, governmental, state, federation or other body, and without
limiting the generality of the foregoing, shall include net income, alternative or add-on minimum
tax, gross income, sales, use, ad valorem, gross receipts, value added, franchise, profits,
license, transfer, recording, withholding, payroll, employment, excise, severance, stamp
occupation, premium, property, windfall profit, custom duty, or other tax, governmental fee or
other like assessment or charge of any kind whatsoever, together with any related interest,
penalties, or other additions to tax, or additional amounts imposed by any such Tax Authority.

“Tax Return” means any return, report, certificate, form or similar statement or
document (including, any related or supporting information or schedule attached thereto and any
information return, amended Tax Return, claim for refund or declaration of estimated tax) required
to be supplied to, or filed with, a Tax Authority in connection with the determination, assessment
or collection of any Tax or the administration of any laws, regulations or administrative
requirements relating to any Tax.

6. If, due to any change in applicable law or regulations or the interpretation thereof by any
court of law or other governing body having jurisdiction subsequent to the date of this Agreement,
performance of any provision of this Agreement or any transaction contemplated thereby shall become
impracticable or impossible, the Parties hereto shall use their best efforts to find and employ an
alternative means to achieve the same or substantially the same result as that contemplated by such
provision.

7. If Parent is found liable to pay any state corporate Tax with respect to income earned by
Subsidiary, Subsidiary agrees to pay to Parent the entire amount of such state corporate Tax
liability within 45 days of written request therefor, under such method as shall be adopted by
Parent and Subsidiary from time to time.

8. This Agreement shall be applicable only with respect to periods for which Subsidiary and
Parent are members of the same Consolidated Group filing a Consolidated Return. No adjustments
shall be made with respect to periods for which either Subsidiary or Parent filed or files a
separate return or is a member of another Consolidated Group filing a Consolidated Return.

9. This Agreement shall terminate on the earlier of (i) the mutual written agreement of the
parties, (ii) if either party ceases to be a member of the same Consolidated Group, and (iii) if
the Consolidated Group to which Parent and Subsidiary belong elects not to file a Consolidated
Return for any taxable year. However, notwithstanding termination, this Agreement shall continue to
be effective with respect to any period during the tax year in which termination occurred for which
the income of Subsidiary is includable in such Consolidated Return. Notwithstanding any such
termination, if upon audit by the IRS of the Consolidated Return for a period during which
Subsidiary and Parent were members of a Consolidated Group, or as a result of any final
administrative or judicial proceedings for any such period, there is any adjustment to Federal
Taxable Income or any Tax Attributes of Parent, then such resulting change in the Consolidated
Group’s Consolidated Return will be allocated to Subsidiary in accordance with the provisions of
this Agreement.

 

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10. This Agreement shall commence on the Effective Date and shall continue in effect as set
forth in Section 9 hereof. Notwithstanding anything in this Agreement to the contrary, the
covenants in this Agreement shall remain in effect and its provisions shall survive for the full
period of all applicable statutes of limitation (giving effect to any extension, waiver or
mitigation thereof).

11. This Agreement may not be assigned by either party without the prior written consent of
the other.

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The parties hereto have executed this Agreement as of the date set forth above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Homeland Security Capital Corporation	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 

	 	 

 

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