Document:

Exhibit 10.12

 

DIRECTOR AGREEMENT

 

This
Director Agreement is entered into as of this 23rd day of July, 2007 (the
“Agreement) by and between Thomas J. Berthel an individual whose business
address is 701 Tama Street, Building B, Marion, Iowa 52302 (“Berthel”) and
American Defense Systems, Inc., a Delaware corporation whose address is
230 Duffy Avenue, Unit C, Hicksville, New York 11801 (“ADSI”).

 

WHEREAS,
ADSI has invited Berthel to serve as a member of its Board of Directors (the
“ADSI Board”); and

 

WHEREAS,
the parties desire to set forth the terms and conditions of Berthel’s service
on the ADSI Board.

 

NOW
THEREFORE, in consideration of the payments by ADSI under this Agreement and
for other good and valuable consideration, the parties agree as follows:

 

1.               Berthal agrees to serve as a
member of the ADSI Board commencing on the date Berthel is elected to the ADSI
Board of Directors by the ADSI shareholders.

 

2.               ADSI will pay to Berthel a
quarterly director fee in the amount of fifteen thousand and ($15,000) to be
paid to Berthel in advance at the beginning of each calendar quarter.  For any period during which Berthel does not
serve as a member of the ADSI Board, his quarterly compensation shall be
reduced on a pro rata basis and he shall refund any unearned amount of the
quarterly director fee to ADSI.

 

3.               For each year of service as
an ADSI Board member, ADSI will issue to Berthel an option to purchase the same
number of shares of ADSI common stock provided to ADSI’s other outside
directors pursuant to the ADSI Stock Option Plan currently being finalized.

 

4.               ADSI will maintain Director
and Officer (D&O) insurance covering Berthel in his capacity as a member of
the ADSI Board.  Attached hereto is a
copy of the current Insurance Certificate for the ADSI D&O coverage.  ADSI shall not materially reduce its D&O
insurance coverage without ADSI Board approval.

 

5.               Berthel shall serve as a member of the ADSI Board until the earlier of (a) the
expiration of his term; (b) until he is removed by the ADSI Board or shareholders;
or (c) he resigns.  Berthel’s
initial term shall expire one year from the date of commencement of his term.

 

6.               Except as otherwise specifically agreed to herein, all notices and
other communications made pursuant to this Agreement shall be in writing and
when (i) delivered in person, (ii) by registered or certified
mail-return receipt requested, (iii) by recognized commercial carrier or
overnight courier or (iv) by facsimile transmission, shall be deemed given
(a)upon receipt, (b) five days after the notice has been deposited in the
mail, postage prepaid, by registered or certified mail, return receipt
requested, (c) one business day after the notice has been

 

 

delivered to such courier service marked for
overnight delivery, or (d) the same business day if faxed prior to 5:00 PM
Eastern time, or the next business day if faxed after 5:00PM Eastern time or on
a day other than a business day.  All
notices sent shall be sent to the respective address indicated herein or as
otherwise designated pursuant to this Section 7.

 

7.               This Agreement sets forth the entire understanding of the parties
relating to the subject matter hereof and supersedes and cancels any prior
communications, understanding and agreements and cannot be modified or changed,
nor can any of its provisions be waived, except by written agreement executed
by both parties hereto.

 

8.               This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware.   In
the event of a disagreement between the parties all parties agree to be subject
to and submit to personal jurisdiction of the state and federal courts located
in the State of New York.

 

9.               If any term, provision,
covenant or restriction contained in this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void, unenforceable or
against its regulatory policy, the remainder of the terms, provisions,
covenants and restriction contained in this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.

 

IN
WITNESS WHEREOF, the parties hereto execute this Agreement as of the day and
date set out above.

 

American
Defense Systems, Inc.

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/
  Thomas J. Berthel

  
	
  Title:

  	
   

  	
   

  	
  Thomas
  J. BerthelExhibit 10.13

CONSULTING SERVICES AGREEMENT 

 

This
Consulting Services Agreement (the “Agreement) is entered into as of this 31st
day of July, 2007 by and between Thomas J. Berthel (“Tom Berthel”), whose
business address is 701 Tama Street, Building B, Marion, Iowa 52302 and
American Defense Systems, Inc., a Delaware corporation whose address is 230
Duffy Avenue, Unit C, Hicksville, New York 11801 (“ADSI”).

 

WHEREAS,
ADSI entered into an investment banking agreement between itself and Stifel
Nicolaus in which Stifel Nicolaus agreed to, in exchange for payment of certain
fees to Stifel Nicolaus by ADSI, to provide investment banking services to ADSI
(the “Investment Banking Fees”); and

 

WHEREAS,
Tom Berthel agreed to negotiate with Stifel Nicolaus, on behalf of ADSI, to
attempt to lower the Investment Banking Fees; and

 

WHEREAS,
Tom Berthel also agreed to provide other consulting services to ADSI; and 

 

WHEREAS,
the parties desire to set forth the terms and conditions of the Agreement.

 

NOW
THEREFORE, in consideration of the mutual benefits to derived by each party
hereto and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties agree as follows:

 

1.             ADSI acknowledges Tom Berthel’s
assistance as a consultant in renegotiating the terms of an investment banking
agreement executed between ADSI and Stifel Nicolaus.  As compensation for the services provided by
Tom Berthel, ADSI has agreed to pay Berthel one half of the fee reductions that
are actually realized as a result of the renegotiation. 

 

The
fees due Stifel Nicolaus under the original investment banking agreement were
as follows:

 

	
  2%
  of the first $50 million raised

  	
   

  	
   

  
	
  3%
  of the next $20 million raised

  	
   

  	
   

  
	
  5%
  of anything in excess of the above (the “Original Fees”)

  	
   

  	
   

  

                                                                                                

As
a result of the renegotiation with Stifel Nicholaus, Stifel Nicolaus has now
agreed to payment of fees according to the following formula:

 

	
  2% of the first $50 million raised

  	
   

  	
   

  
	
  3% of the next $50 million
  raised

  	
   

  	
   

  
	
  4% of all funds raised
  over $100 million (the “Revised Fees”)

  	
   

  	
   

  

                                                                                                

As
an illustration and by way of an example only, in the event the Stifel Nicolaus
assisted offering should raise a total of $200,000,000, the fee reduction and
the amount to be paid to Berthel would be calculated as follows:

 

	
  Amount Raised

  	
   

  	
  Original Fees

  	
   

  	
  Revised Fees

  	
   

  	
  Fee Reduction

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  50 MM

  	
   

  	
  $

  	
  1MM

  	
   

  	
  $

  	
  1MM

  	
   

  	
  0

  
	
  $

  	
  20 MM

  	
   

  	
  $

  	
  600,000

  	
   

  	
  $

  	
  600,000

  	
   

  	
  0

  
	
  $

  	
  30
  MM

  	
   

  	
  $

  	
  1,500,000

  	
   

  	
  $

  	
  900,000

  	
   

  	
  $

  	
  600,000

  
	
  $

  	
  100
  MM

  	
   

  	
  $

  	
  5,000,000

  	
   

  	
  $

  	
  4,000,000

  	
   

  	
  $

  	
  1,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,600,000

  

 

 

 

 

The
amount payable to Berthel in this example would be one-half of the $1,600,000
fee reduction, which is $800,000.

 

2.             Tom Berthel has provided and shall
continue to provide consulting services to ADSI as reasonably requested by ADSI
through April 30, 2008.  In consideration
of these services, ADSI agrees to issue Tom Berthel an option (“Consulting
Option”) to purchase shares of ADSI common stock pursuant to an ADSI stock
option plan under development.  The
Consulting Option will be for a number of shares equal to 250,000 less the
number of shares provided in an option granted to Tom Berthel for his first
year of service as a member of the ADSI Board of Directors.  The Consulting Option (a) shall be
exercisable at the fair market value of the ADSI common stock on the date
granted; (b) shall expire on April 30, 2010; and (c) shall be issued promptly
upon finalization of the ADSI option plan.

 

3.             Except as otherwise specifically
agreed to herein, all notices and other communications made pursuant to this
Agreement shall be in writing and when (i) delivered in person, (ii) by
registered or certified mail-return receipt requested, (iii) by recognized
commercial carrier or overnight courier or (iv) by facsimile transmission,
shall be deemed given (a)upon receipt, (b) five days after the notice has been
deposited in the mail, postage prepaid, by registered or certified mail, return
receipt requested, (c) one business day after the notice has been delivered to
such courier service marked for overnight delivery, or (d) the same business
day if faxed prior to 5:00 PM Eastern time, or the next business day if faxed
after 5:00PM Eastern time or on a day other than a business day.  All notices sent shall be sent to the
respective address indicated herein or as otherwise designated pursuant to this
Section 7.

 

4.             This Agreement sets forth the
entire understanding of the parties relating to the subject matter hereof and
supersedes and cancels any prior communications, understanding and agreements
and cannot be modified or changed, nor can any of its provisions be waived,
except by written agreement executed by both parties hereto.

 

5.             This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware.   In the event of a disagreement between the
parties all parties agree to be subject to and submit to personal jurisdiction
of the state and federal courts located in the State of New York.

 

6.             If any term, provision, covenant or
restriction contained in this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void, unenforceable or against
its regulatory policy, the remainder of the terms, provisions, covenants and
restriction contained in this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated.

 

IN WITNESS WHEREOF, the parties hereto execute this Agreement as of the
day and date set out above.

 

	
  American
  Defense Systems, Inc.

  	
   

  	
  Thomas
  J. Berthel

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Thomas F. Cusack

  	
   

  	
  By:
  /s/

  
	
  Title:

  	
  VP,
  Corp Counsel, Secy

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]