Document:

January 3, 2011

 

Michael K. Clark

157 Beach 135 Street

Belle Harbor, NY 11694

  

Dear Mr. Clark:

 

This letter agreement relating to your services
as a director and Chairman of the Board of World Surveillance Group Inc. (the “Company”) supercedes your agreement
dated June 23, 2010 with the Company and any other agreements of any nature, whether written or oral, regarding the subject matter
herein, which prior agreements are hereby terminated and of no further force or effect.

 

As compensation for your services as a director
and Chairman of the Board of the Company since June 23, 2010, you have received the following: 5,000,000 shares of common stock,
par value $0.00001 per share, of the Company (the “Common Stock”) with no vesting restrictions, a bonus for 2010 in
the form of a fully vested option to acquire 1,000,000 shares of Common Stock at an exercise price of $0.075, and a performance
based option to acquire 4,000,000 shares of Common Stock at an exercise price of $0.075, 60% of which is currently vested.

 

You and the Company hereby agree to cancel
and terminate your Non-Qualified Stock Option Agreement dated March 30, 2011 for 4,000,000 shares of Common Stock, such that as
of the date hereof it shall no longer have any force or effect. You shall receive 2,000,000 fully paid and non-assessable shares
of Common Stock, such shares to be subject to the restrictions of Rule 144 promulgated pursuant to the Securities Act. The Company
shall issue written instructions to its transfer agent promptly following execution of this letter agreement, but in any event
within ten (10) days thereafter, for the issuance of such shares. You will be eligible for a performance bonus equal to 1,000,000
fully paid and non-assessable shares of Common Stock, such shares to be subject to the restrictions of Rule 144 promulgated pursuant
to the Securities Act, upon the completion of each of the following five milestones for a total potential bonus of 5,000,000 shares
of Common Stock:

		·	The closing of a financing of at least $1.0 million;

		·	The date of the successful testing of the Argus One airship at the Yuma Proving Grounds or the Nevada Test Site;

		·	The signing of a contract by GTC for the construction of a satellite ground station;

		·	The signing of a $500,000 contract by GTC for tracking and messaging services; and

		·	The signing of a memorandum of understanding with Oklahoma State University – University Multispectral Laboratories.

			

 

The above compensation does not take into
account the shares of Common Stock you received in connection with any of your investments in the Company. Your investment support
of the Company has been greatly appreciated.

 

State Road 405, Building M6-306A, Room 1400,
Kennedy Space Center, FL 32815

(p) 321-452-3545 (f) 321-452-8965

 

    	 

    	 

    

 

As compensation for your continued services
as a director and Chairman of the Board, the Company shall issue you 500,000 fully paid and non-assessable shares of Common Stock,
such shares to be subject to the restrictions of Rule 144 promulgated pursuant to the Securities Act of 1933, as amended (the “Securities
Act”), per fiscal quarter of service retroactive to the third fiscal quarter of 2011. Beginning after the execution of this
letter agreement, the Company shall issue written instructions to its transfer agent within ten (10) days following the end of
each quarter for the issuance of such shares. At your request, the Company will assist you in getting Rule 144 opinions in compliance
with the securities laws.

 

In addition, beginning in the first fiscal
quarter of 2012, you will be eligible for a performance bonus equal to an additional 500,000 fully paid and non-assessable shares
of Common Stock, such shares to be subject to the restrictions of Rule 144 promulgated pursuant to the Securities Act, per fiscal
quarter if either (i) the Company’s Common Stock price (as quoted on the OTCBB) hits the following targets: On March 30,
2012 - $0.108; on June 30, 2012 - $0.119; and on September 30, 2012 - $0.131, or (ii) the average closing price of the Company’s
Common Stock (as quoted on the OTCBB) during the corresponding quarter equals the following targets: for the quarter ended March
30, 2012 - $0.108; for the quarter ended June 30, 2012 - $0.119; and for the quarter ended September 30, 2012 - $0.131. If any
such date is one on which the Common Stock is not quoted on the OTCBB, then the target date shall be the next day on which the
Common Stock is so quoted. The Board of the Company intends to re-evaluate Board compensation after twelve months.

 

You are a Class II Director whose term shall
expire at the 2012 Annual Meeting of Stockholders of the Company, unless reelected as a director by the shareholders of the Company
at that time. We plan on having at least monthly Board meetings, some of which will be in person and others to be telephonic. All
of your travel and accommodation expenses reasonably incurred in connection with in-person Board meetings will be reimbursed by
the Company.

 

The Company does not yet have Directors
and Officers liability insurance but intends to attempt to get such insurance as soon as it is reasonably and commercially able
to do so. The Company intends to use its commercially reasonable efforts to protect its Directors and Officers from liabilities
arising as a direct result of their service to the Company in such capacities.

 

Attached for your review, please find copies
of the Company’s Insider Trading Policy, Code of Ethics and Business Conduct, and Related Party Transaction Policy, which
as a director of the Company you will be subject to. As the Company is publicly traded, you will also be subject to Section 16
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) which requires, among other things, you to
file Forms 3, 4 and 5s and comply with the short-swing profit rules – attached is a brief memo that discusses such rules.
In light of the foregoing, you agree to notify the Company simultaneously with any sales, dispositions, transfers, acquisitions
or other changes in your ownership of the Company’s securities. Please do not hesitate to contact me or our General Counsel,
Barbara Johnson, if you have any questions.

 

You acknowledge that you (a) understand
the requirements of and the general terms under which you will serve as a director of the Company, (b) understand that as a director
you will have a fiduciary duty to the Company and agree that you will at all times act in the Company’s best interests while
acting in your capacity as a director of the Company, (c) will do your best to attend Board meetings and any meetings of committees
of which you are then a member, (d) have read and will adhere to the Company’s Insider Trading Policy, Code of Ethics and
Business Conduct, and Related Party Transaction Policy, (e) will comply with all applicable state and federal laws and regulations,
including Sections 10 and 16 of the Exchange Act and the rules promulgated thereunder, (f) will act in accordance with the Company’s
Restated Certificate of Incorporation and Amended and Restated By-Laws, as both may be amended from time to time, and the corporate
law of the State of Delaware, (g) agree to hold all information and Board materials supplied to you regarding the Company in the
strictest confidence and to not disclose such information or materials to any third party or use such information or materials
other than in your capacity as a member of the Board of Directors of the Company, and (h) have no agreement which would be violated
by your service as a director of the Company and you agree not to enter into any agreement while you are a director that creates
a conflict of interest with this letter agreement.

 

    	 

    	 

    

  

If you are in agreement with these terms,
I would appreciate it if you would execute two original copies of this letter agreement, which will also reflect your receipt and
understanding of your obligations pursuant to the above identified policies and rules. Please keep one copy of the letter agreement
for your records, and return the other copy of the letter agreement to Barbara Johnson.

 

We very much look forward to continuing to work with you.

 

Very Truly Yours,

 

World Surveillance Group Inc.

  

By:_/s/ Glenn D. Estrella

 

Glenn D. Estrella

President and CEO

 

	 	Accepted and Agreed,
	 	 
	 	/s/ Michael K. Clark
	 	Michael K. Clark<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RESTRICTED STOCK AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.45pt">THIS RESTRICTED STOCK
AGREEMENT (the &ldquo;<B>Agreement</B>&rdquo;), dated as of September 28, 2011<B> </B>is made by and between World Surveillance
Group Inc., a Delaware corporation (&ldquo;<B>Company</B>&rdquo;), and Daniyel Erdberg, Glenn D. Estrella, Barbara M. Johnson,
and David Phipps (collectively, the &ldquo;<B>Employees</B>&rdquo;, and each individually, an &ldquo;<B>Employee</B>&rdquo;, and
together with the Company, the &ldquo;<B>Parties</B>&rdquo;, or each individually, a &ldquo;<B>Party</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; text-indent: 33.45pt">WHEREAS,
the Company&rsquo;s Board of Directors has granted an aggregate of 1.8 million shares (the &ldquo;<B>Shares</B>&rdquo;) of common
stock, par value $0.00001<FONT STYLE="font: 10pt Times New Roman, Times, Serif"> </FONT>per share, of the Company (the &ldquo;<B>Common
Stock</B>&rdquo;) to the Employees in such individual amounts as set forth below each Employee&rsquo;s name on the signature page
hereto, as compensation for remaining with the Company in addition to and not in lieu of any accrued salaries on the books of the
Company; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Parties
agree that the Shares shall be subject to the restrictions set forth below in this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge the parties agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Grant.</U> On
the terms and conditions and subject to the restrictions, including forfeiture, hereinafter set forth, the Company hereby grants
to each Employee, and each Employee hereby accepts, a restricted stock award of that number of Shares as set forth below such Employee&rsquo;s
name on the signature page hereto.&nbsp;&nbsp;The grants are made effective as of the date hereof (the &ldquo;Effective Date&rdquo;).&nbsp;&nbsp;The
Shares shall be issued in book-entry or stock certificate form in the names of the Employees as of the Effective Date and delivered
to the Employees on the Effective Date or as soon thereafter as practicable.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Taxes</U>. The Company shall pay all
payroll and other taxes in connection with this grant and the issuance of the Shares owing either by the Company and/or the Employees
(other than individual income taxes and/or capital gains taxes on any subsequent sale by the Employee of the Shares). The Company
shall bonus to the Employee in cash no later than ten (10) business days before the date such taxes are due the amount of any such
taxes due and payable by such Employee in connection with this grant and the issuance of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Representations
and Warranties and Covenants</U>. Each Party hereby represents, warrants and covenants to the other Party, on behalf of itself
and no other Party, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">a.&nbsp;&nbsp;&nbsp;&nbsp; <U>No Registration</U>.
The Employee understands that none of the Shares have been, nor will be, registered under the Securities Act of 1933, as amended
(the &ldquo;<B>Securities Act</B>&rdquo;) by reason of a specific exemption from the registration provisions of the Securities
Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy
of such Employee&rsquo;s representations as expressed herein or otherwise made pursuant hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">b. &nbsp;&nbsp;&nbsp;<U>Investment Intent</U>.
The Employee is acquiring the Shares for investment for its own account, not as a nominee or agent, and not with the view to, or
for resale in connection with<FONT STYLE="font-size: 10pt">, </FONT>any distribution thereof, and such Employee has no present
intention of selling, granting any participation in, or otherwise distributing the same. The Employee further represents that it
does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation
to such person or entity or to any third person or entity with respect to the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">c. &nbsp;&nbsp;<U>Investment Experience</U>.
The Employee, either alone or together with its representatives, has substantial experience in evaluating and investing in private
placement transactions of securities in companies similar to the Company and acknowledges that the Employee can protect its own
interests. The Employee has such knowledge and experience in financial and business matters so that such Employee is capable of
evaluating the merits and risks of its investment in the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">d. &nbsp;&nbsp;&nbsp;<U>Speculative Nature
of Investment</U>. Such Employee understands and acknowledges that the Company has a limited financial and operating history and
<FONT STYLE="font-size: 12pt">that an </FONT>investment in the Company is highly speculative and involves substantial risks. Such
Employee can bear <FONT STYLE="font-size: 12pt">the economic risk of such Employee&rsquo;s investment and is able, without impairing
such Employee&rsquo;s </FONT>financial condition, to hold the Shares for an indefinite period of time and to suffer a complete
loss of such Employee&rsquo;s investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">e. &nbsp;&nbsp;&nbsp;<U>Accredited Investor</U>.
The Employee is an &ldquo;accredited investor&rsquo; within the meaning of Regulation D, Rule 501(a), promulgated by the Securities
and Exchange Commission under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">f. &nbsp;&nbsp;&nbsp;&nbsp;<U>Rule 144</U>.
The Employee acknowledges that the Shares must be held indefinitely unless subsequently registered under the Securities Act or
an exemption from such registration is available. The Employee is aware of the provisions of Rule 144 promulgated under the Securities
Act which permit limited resale of shares subject to the satisfaction of certain conditions. The Employee acknowledges that, in
the event all of the requirements of Rule 144 are not met, registration under the Securities Act or an exemption from registration
will be required for any disposition of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">g. &nbsp;&nbsp;<U>Authorization</U>.
Each Party represents for itself and no other Party that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&#9;i. &nbsp;&nbsp;&nbsp;&nbsp;It has all requisite
power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms hereof.
All action on the part of such Party necessary for the authorization, execution, delivery and performance of this Agreement, and
the performance of all of such Party&rsquo;s obligations herein, has been taken.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.25pt">ii.&nbsp;&nbsp;&nbsp; This Agreement,
when executed and delivered by it, will constitute the valid and legally binding obligation of such Party, enforceable in accordance
with its terms except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors&rsquo; rights generally, and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies or by general principles of equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">iii. &nbsp;&nbsp;&nbsp;No consent, approval,
authorization, order, filing, registration or qualification of or with any court, governmental authority or third person is required
to be obtained by it in connection with the execution and delivery of this Agreement by such Party or the performance of such Party&rsquo;s
obligations hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">j<FONT STYLE="font-size: 12pt">.
&nbsp;&nbsp;&nbsp;</FONT><U>Brokers or Finders</U>. Each Party represents that it has not engaged any brokers, finders or agents, and that the other
Party has not, and will not, incur, directly or indirectly, as a result of any action taken by it, any liability for brokerage
or finders&rsquo; fees or agents&rsquo; commissions or any similar charges in connection with this Agreement and the transactions
related hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">k. &nbsp;&nbsp;<U>Tax Advisors</U>.
Each Party represents that it has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences
of this investment and the transactions contemplated by this Agreement. With respect to such matters, it has relied solely on its
advisors and not on any statements or representations of the other Party hereto or any of such other Party&rsquo;s agents, written
or oral. It understands that the Company shall be responsible for the payroll and other tax liability that may arise as a result
of this grant or the transactions contemplated by this Agreement as specifically set forth in Section 2 hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">l. &nbsp;&nbsp;&nbsp;<U>Legends. </U>
The Employee understands and agrees that the the certificates evidencing the Shares shall bear a legend in substantially the form
as follows (in addition to any legend required by any other applicable agreement or under applicable state securities laws):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: 0in">&ldquo;THE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS,
OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL,
THAT SUCH REGISTRATION IS NOT REQUIRED.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#9;<U>Governing
Law; Entire Agreement; Counterparts</U>. The interpretation of this Agreement shall be governed by the internal laws of the State
of Delaware, without regards to the principles of conflicts of laws thereof. This Agreement contains the entire agreement of the
Parties with respect to the subject matter hereof and supercedes all prior agreements and understandings, oral or written, with
respect to such matters, and there are no representations, covenants, or other agreements except as stated or referred to herein.
Neither this Agreement nor any of the provisions herein shall be modified, waived, discharged, or terminated except by an instrument
in writing signed by the Party against whom any modification, waiver, discharge, or termination is sought. This Agreement may be
executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, for
all purposes, constitute one agreement binding on all the Parties, notwithstanding that all Parties are not signatories to the
same counterpart.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&#9;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictions</U>.
During a period from the date of this Agreement until January 2, 2012, an Employee&rsquo;s Shares shall be forfeited by such Employee
in the event during such period either such Employee voluntarily terminates his or her employment with the Company or such Employee
is terminated by the Company as a result of his or her violation of a criminal statute which constitutes a felony. This restriction
shall immediately terminate in the event such Shares are registered under the Securities Act. During such period, each Employee
will have all rights as a shareholder in connection with such Employee&rsquo;s Shares, but he or she may not sell, dispose of or
otherwise transfer the Shares, except by operation of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 12pt">IN<B> </B></FONT>WITNESS
WHEREOF, the Parties have caused this Agreement to be duly executed by their respective representatives thereonto duly authorized
as of the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;&#9;</P>

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    <TD STYLE="width: 50%; tab-stops: 45.9pt; text-autospace: none; font-size: 10pt; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 50%; tab-stops: 45.9pt; text-autospace: none; font-size: 10pt">WORLD SURVEILLANCE GROUP INC.</TD></TR>
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    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; text-align: center; width: 50%">&nbsp;</TD>
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; width: 4%">By&nbsp;</TD>
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; width: 24%; border-bottom: Black 1pt solid">: /s/ Glenn D. Estrella</TD>
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; width: 22%; padding-bottom: 1pt">&nbsp;</TD></TR>
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    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">Name: Glenn D. Estrella</TD></TR>
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    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">Title: President and CEO</TD></TR>
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    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-indent: 0in; tab-stops: 40.25pt 69.4pt; text-autospace: none">&nbsp;</TD></TR>
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    <TD COLSPAN="3" STYLE="text-autospace: none">EMPLOYEES:</TD></TR>
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    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none; border-bottom: Black 1pt solid">/s/ Daniyel Erdberg</TD>
    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">Daniyel Erdberg</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">500,000 Shares</TD></TR>
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    <TD STYLE="width: 10%; text-autospace: none">Address:</TD>
    <TD STYLE="width: 40%; text-autospace: none">1885 NE 117 Road</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">North Miami, FL 33181</TD></TR>
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    <TD STYLE="width: 50%; tab-stops: 45.9pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none; border-bottom: Black 1pt solid">/s/ Glenn D. Estrella</TD>
    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">Glenn D. Estrella</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">600,000 Shares</TD></TR>
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    <TD STYLE="width: 10%; text-autospace: none">Address:</TD>
    <TD STYLE="width: 40%; text-autospace: none">1608 Sheridan Drive</TD></TR>
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    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none">&nbsp;</TD>
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none">Wall Township, NJ 07753</TD></TR>
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    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none; border-bottom: Black 1pt solid">/s/ Barbara M. Johnson</TD>
    <TD STYLE="width: 25%; tab-stops: 45.9pt; text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="tab-stops: 45.9pt; text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="tab-stops: 45.9pt; text-autospace: none">Barbara M. Johnson</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">500,000 Shares</TD></TR>
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    <TD STYLE="width: 10%; text-autospace: none">Address:</TD>
    <TD STYLE="width: 40%; text-autospace: none">411 Walnut Street, #4440</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Green Cove Springs, FL 32043</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center; width: 50%">&nbsp;</TD>
    <TD STYLE="text-autospace: none; width: 25%; border-bottom: Black 1pt solid">/s/ David Phipps</TD>
    <TD STYLE="text-autospace: none; width: 25%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">David Phipps</TD></TR>
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    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">200,000 Shares</TD></TR>
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    <TD STYLE="width: 10%; text-autospace: none">Address:</TD>
    <TD STYLE="width: 40%; text-autospace: none">56 Pearce Avenue</TD></TR>
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    <TD STYLE="text-align: center; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: center; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: left; text-autospace: none">Poole, Dorset</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: center; text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-align: left; text-autospace: none">United Kingdom, BH14 8EH</TD></TR>
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