Document:

Exhibit
10.3

security
agreement

THIS SECURITY AGREEMENT dated as
of November 27, 2006 (“Security Agreement”),
is made by and among CRYSTAL INTERNATIONAL
TRAVEL GROUP, INC., a Delaware corporation (“Grantor”),
and Arnold Income Fund LP, in favor, as collateral agent for the benefit of the
Credit Parties (as defined below) (in such capacity, the “Agent”).

BACKGROUND

A.            Pursuant to that certain Secured Note and Warrant
Purchase Agreement, dated as of November         ,
2006 (as the same may from time to time be amended, modified, supplemented or
restated, the “Purchase Agreement”), by and
between Grantor and certain Purchasers identified on the Schedule of Purchasers
thereto, as the same may be amended from time to time (the “Purchasers”),  the Purchasers have agreed to make certain
advances of money and to extend certain financial accommodations to Grantor as
evidenced by certain Secured Promissory Notes (each, a “Note”
and, collectively, the “Notes”)
variously dated, each made by Grantor and payable to a Purchaser (collectively,
the “Loans”).

B.            The Purchasers are willing to make
the Loans to Grantor, but only upon the condition, among others, that Grantor
shall have executed and delivered to the Agent this Agreement. 

AGREEMENT

NOW, THEREFORE, in order to
induce the Purchasers to make the Loans and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound, Grantor hereby represents, warrants, covenants
and agrees as follows:

1.             DEFINED TERMS.  When used in this Security Agreement the
following terms shall have the following meanings (such meanings being equally
applicable to both the singular and plural forms of the terms defined):

“Bankruptcy Code”
means Title XI of the United States Code.

“Collateral”
shall have the meaning assigned to such term in Section 2
of this Security Agreement.

“Contracts”
means all contracts (including any customer, vendor, supplier, service or
maintenance contracts), leases, licenses, undertakings, purchase orders,
permits, franchise agreements or other agreements (other than any right
evidenced by Chattel Paper, Documents or Instruments), whether in written or
electronic form, in or under which Grantor now holds or hereafter acquires any
right, title or interest, including, without limitation, with respect to an
Account, any agreement relating to the terms of payment or the terms of
performance thereof.

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“Copyright License”
means any agreement, whether in written or electronic form, in which Grantor
now holds or hereafter acquires any interest, granting any right in or to any
Copyright or Copyright registration (whether Grantor is the licensee or the
licensor thereunder) including, without limitation, licenses pursuant to which
Grantor has obtained the exclusive right to use a copyright owned by a third
party.

“Copyrights”
means all of the following now owned or hereafter acquired or created (as a
work for hire for the benefit of Grantor) by Grantor or in which Grantor now
holds or hereafter acquires or receives any right or interest, in whole or in
part: (a) all copyrights, whether registered or unregistered, held pursuant to
the laws of the United States, any State thereof or any other country; (b)
registrations, applications, recordings and proceedings in the United States
Copyright Office or in any similar office or agency of the United States, any
State thereof or any other country; (c) any continuations, renewals or
extensions thereof; (d) any registrations to be issued in any pending
applications, and shall include any right or interest in and to work
protectable by any of the foregoing which are presently or in the future owned,
created or authorized (as a work for hire for the benefit of Grantor) or
acquired by Grantor, in whole or in part; (e) prior versions of works covered
by copyright and all works based upon, derived from or incorporating such
works; (f) income, royalties, damages, claims and payments now and hereafter
due and/or payable with respect to copyrights, including, without limitation,
damages, claims and recoveries for past, present or future infringement; (g)
rights to sue for past, present and future infringements of any copyright; and
(h) any other rights corresponding to any of the foregoing rights throughout
the world.

“Credit Parties” means, collectively,
the Purchasers and the Agent.

“Event of Default”
means (i) any failure by Grantor forthwith to pay or perform any of the Secured
Obligations, and (ii) any “Event of Default” as defined in the Purchase
Agreement.

“Intellectual Property” means any
intellectual property, in any medium, of any kind or nature whatsoever, now or
hereafter owned or acquired or received by Grantor or in which Grantor now
holds or hereafter acquires or receives any right or interest, and shall
include, in any event, any Copyright, Trademark, Patent, trade secret, customer
list, internet domain name (including any right related to the registration
thereof), proprietary or confidential information, mask work, source, object or
other programming code, invention (whether or not patented or patentable),
technical information, procedure, design, knowledge, know-how, software,
data base, data, skill, expertise, recipe, experience, process, model, drawing,
material or record.

“License”
means any Copyright License, Patent License, Trademark License or other license
of rights or interests, whether in-bound or out-bound, whether in written or
electronic form, now or hereafter owned or acquired or received by Grantor or
in which Grantor now holds or hereafter acquires or receives any right or
interest, and shall include any renewals or extensions of any of the foregoing
thereof.

“Lien” means
any mortgage, lien, deed of trust, charge, pledge, security interest or other
encumbrance.

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“Patent License”
means any agreement, whether in written or electronic form, in which Grantor
now holds or hereafter acquires any interest, granting any right with respect
to any invention on which a Patent is in existence (whether Grantor is the
licensee or the licensor thereunder).

“Patents”
means all of the following in which Grantor now holds or hereafter acquires any
interest: (a) all letters patent of the United States or any other country, all
registrations and recordings thereof and all applications for letters patent of
the United States or any other country, including, without limitation,
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country; (b)all reissues, divisions, continuations,
renewals, continuations-in-part or extensions thereof; (c) all petty patents,
divisionals and patents of addition; (d) all patents to issue in any such
applications; (e) income, royalties, damages, claims and payments now and
hereafter due and/or payable with respect to patents, including, without
limitation, damages, claims and recoveries for past, present or future
infringement; and (f) rights to sue for past, present and future infringements
of any patent.

“Permitted Lien”
means: (a) any Liens existing on the date of this Security Agreement and set
forth on Schedule A attached hereto; (b) Liens for taxes, fees, assessments or
other governmental charges or levies, either not delinquent or being contested
in good faith by appropriate proceedings; (c) Liens (i) upon or in any
Equipment acquired or held by Grantor to secure the purchase price of such
Equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such Equipment or (ii) existing on such Equipment at the time of
its acquisition, provided that the Lien is confined solely to the Equipment so
acquired, improvements thereon and the Proceeds of such Equipment; (d) leases
or subleases and licenses or sublicenses granted to others in the ordinary
course of Grantor’s business; (e) any right, title or interest of a licensor
under a license; (f) Liens arising from judgments, decrees or attachments to
the extent and only so long as such judgment, decree or attachment has not
caused or resulted in an Event of Default under the Purchase Agreement; (g)
easements, reservations, rights-of-way, restrictions, minor defects or
irregularities in title and other similar Liens affecting real property not
interfering in any material respect with the ordinary conduct of the business
of Grantor; (h) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods; (i) Liens arising solely by virtue of any statutory or
common law provision relating to banker’s liens, rights of setoff or similar
rights and remedies as to securities accounts, deposit accounts or other funds
maintained with a creditor depository institution; (j) Liens on equipment and
other personal property (including proceeds thereof and accessions thereto)
securing capital or operating lease obligations, including without limitation
sale and lease-back transactions; and (k) Liens, not otherwise permitted, which
Liens do not in the aggregate exceed $50,000 at any one time.

“Pro Rata”
means, as to any Credit Party at any time, the percentage equivalent at such
time of such Credit Party’s aggregate unpaid principal amount of Loans, divided
by the combined aggregate unpaid principal amount of all Loans of all Credit
Parties.

“Secured Obligations”
means (a) the obligation of Grantor to repay the Credit Parties all of the
unpaid principal amount of, and accrued interest on (including any interest
that accrues

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after the commencement of bankruptcy), the Loans and
(b) the obligation of Grantor to pay any fees, costs and expenses of the Agent
under Section 6(c) hereof.

“Security Agreement”
means this Security Agreement and all Schedules hereto, as the same may from
time to time be amended, modified, supplemented or restated.

“Trademark License”
means any agreement, whether in written or electronic form, in which Grantor
now holds or hereafter acquires any interest, granting any right in and to any
Trademark or Trademark registration (whether Grantor is the licensee or the
licensor thereunder).

“Trademarks”
means any of the following in which Grantor now holds or hereafter acquires any
interest: (a) any trademarks, tradenames, corporate names, company names,
business names, trade styles, service marks, logos, other source or business
identifiers, prints and labels on which any of the foregoing have appeared or
appear, designs and general intangibles of like nature, now existing or
hereafter adopted or acquired, all registrations and recordings thereof and any
applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Patent and
Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country (collectively, the “Marks”);
(b) any reissues, extensions or renewals thereof; (c) the goodwill of the
business symbolized by or associated with the Marks; (d) income, royalties,
damages, claims and payments now and hereafter due and/or payable with respect
to the Marks, including, without limitation, damages, claims and recoveries for
past, present or future infringement; and (e) rights to sue for past, present
and future infringements of the Marks.

“UCC” means
the Uniform Commercial Code as the same may from time to time be in effect in
the State of New York (and each reference in this Security Agreement to an
Article thereof (denoted as a Division of the UCC as adopted and in effect
in the State of New York) shall refer to that Article (or Division, as
applicable) as from time to time in effect, which in the case of Article 9
shall include and refer to Revised Article 9 from and after the date
Revised Article 9 shall become effective in the State of New York); provided, however, in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of the
Agent’s security interest in any Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New
York, the term “UCC” shall mean the Uniform
Commercial Code (including the Articles thereof) as in effect at such time in
such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to
such provisions.

In addition, the following terms shall be defined
terms having the meaning set forth for such terms in the UCC: “Account” (including health-care
insurance receivables), “Account Debtor,”
“Chattel Paper” (including tangible
and electronic chattel paper), “Commercial Tort Claims,”
“Commodity Account,” “Deposit Account,” “Documents,” “Equipment”
(including all accessions and additions thereto), “Fixtures,”
“General Intangible” (including
payment intangibles and software), “Instrument,”
“Inventory” (including all goods held
for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), “Investment Property”
(including securities and securities entitlements), “Letter-of-Credit
Rights” (whether or not the letter of credit is evidenced by a
writing), “Payment Intangibles,”

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“Proceeds,” “Promissory Notes,” “Securities Account,” and “Supporting Obligations.”  Each of the foregoing defined terms shall
include all of such items now owned, or hereafter acquired, by Grantor.

2.            GRANT OF
SECURITY INTEREST.  As
collateral security for the full, prompt, 
complete and final payment and performance when due (whether at stated
maturity, by acceleration or otherwise) of all the Secured Obligations and in
order to induce the Secured Parties to cause the Loans to be made, Grantor
hereby assigns, conveys, mortgages, pledges, hypothecates and transfers to the
Agent, for the ratable benefit of the Credit Parties, and hereby grants to the
Agent, for the ratable benefit of the Credit Parties, a security interest in
all of Grantor’s right, title and interest in, to and under the following,
whether now owned or hereafter acquired, (all of which being collectively
referred to herein as the “Collateral”):

(a)           All Accounts of Grantor;

(b)           All Chattel Paper of Grantor;

(c)           All Commercial Tort Claims of Grantor;

(d)           All Contracts of Grantor;

(e)           All Deposit Accounts of Grantor;

(f)            All Documents of Grantor;

(g)           All Equipment of Grantor;

(h)           All Fixtures of Grantor;

(i)            All General Intangibles of Grantor,
including, without limitation, Payment Intangibles, all Copyrights, Patents,
Trademarks or Licenses;

(j)            All Instruments of Grantor, including,
without limitation, Promissory Notes;

(k)           All Inventory of Grantor;

(l)            All Investment Property of Grantor;

(m)          All Letter-of Credit Rights of Grantor;

(n)           All Supporting Obligations of Grantor;

(o)           All property of Grantor held by any
Credit Party, or any other party for whom any Credit Party is acting as agent,
including, without limitation, all property of every description now or
hereafter in the possession or custody of or in transit to any Credit Party or
such other party for any purpose, including, without limitation, safekeeping,
collection or pledge, for the account of Grantor, or as to which Grantor may
have any right or power;

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(p)           All other goods and personal property of
Grantor, wherever located, whether tangible or intangible, and whether now
owned or hereafter acquired, existing, leased or consigned by or to Grantor;
and

(q)           To the extent not otherwise included,
all Proceeds of each of the foregoing and all accessions to, substitutions and
replacements for and rents, profits and products of each of the foregoing.

Notwithstanding
the foregoing provisions of this Section 2, the grant, assignment and transfer of a security interest
as provided herein shall not extend to, and the term “Collateral”
shall not include:  (a) ”intent-to-use”
trademarks at all times prior to the first use thereof, whether by the actual
use thereof in commerce, the recording of a statement of use with the United
States Patent and Trademark Office or otherwise or (b) any Contract, Instrument
or Chattel Paper in which Grantor has any right, title or interest if and to
the extent such Contract, Instrument or Chattel Paper includes a provision
containing a restriction on assignment such that the creation of a security
interest in the right, title or interest of Grantor therein would be prohibited
and would, in and of itself, cause or result in a default thereunder enabling
another person or party to such Contract, Instrument or Chattel Paper to
enforce any remedy with respect thereto; provided that
the foregoing exclusion shall not apply if (i) such prohibition has been waived
or such other person has otherwise consented to the creation hereunder of a
security interest in such Contract, Instrument or Chattel Paper or
(ii) such prohibition would be rendered ineffective pursuant to Sections
9-407(a) or 9-408(a) of the UCC, as applicable and as then in effect in any
relevant jurisdiction, or any other applicable law (including the Bankruptcy
Code) or principles of equity; provided further
that immediately upon the ineffectiveness, lapse or termination of any such
provision, the Collateral shall include, and Grantor shall be deemed to have
granted a security interest in, all its rights, title and interests in and to
such Contract, Instrument or Chattel Paper as if such provision had never been
in effect; and provided further that the
foregoing exclusion shall in no way be construed so as to limit, impair or
otherwise affect the Agent’s unconditional continuing security interest in and
to all rights, title and interests of Grantor in or to any payment obligations
or other rights to receive monies due or to become due under any such Contract,
Instrument or Chattel Paper and in any such monies and other proceeds of such
Contract, Instrument or Chattel Paper.

3.            RIGHTS OF
AGENT; COLLECTION OF ACCOUNTS.

(a)           Notwithstanding anything contained in
this Security Agreement to the contrary, Grantor expressly agrees that it shall
remain liable under each of its Contracts and each of its Licenses to observe
and perform all the conditions and obligations to be observed and performed by
it thereunder and that it shall perform all of its duties and obligations
thereunder, all in accordance with and pursuant to the terms and provisions of
each such Contract or License.  No Credit
Party shall have any obligation or liability under any Contract or License by
reason of or arising out of this Security Agreement or the granting to the
Agent of a lien therein or the receipt by the Agent of any payment relating to
any Contract or License pursuant hereto, nor shall the Agent be required or
obligated in any manner to perform or fulfill any of the obligations of Grantor
under or pursuant to any Contract or License, or to make any payment, or to
make any inquiry as to the nature or the sufficiency of any payment received by
it or the sufficiency of any performance by any party under any Contract or
License, or to present or file any claim, or to

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take any action to collect or enforce any performance
or the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.

(b)           The Agent authorizes Grantor to collect
its Accounts.  Upon the occurrence and
during the continuance of any Event of Default, at the request of the Required
Purchasers, Grantor shall deliver all original and other documents evidencing
and relating to the performance of labor or service which created such
Accounts, including, without limitation, all original orders, invoices and
shipping receipts.

(c)           The Agent may at any time, upon the
occurrence and during the continuance of any Event of Default and with the
written consent of the Required Purchasers, notify Account Debtors of Grantor,
parties to the Contracts of Grantor, obligors in respect of Instruments of
Grantor and obligors in respect of Chattel Paper of Grantor that the Accounts
and the right, title and interest of Grantor in and under such Contracts,
Instruments and Chattel Paper have been assigned to the Agent and that payments
shall be made directly to Agent.  Upon
the request of the Required Purchasers, Grantor shall so notify such Account
Debtors, parties to such Contracts, obligors in respect of such Instruments and
obligors in respect of such Chattel Paper. 
Upon the occurrence and during the continuance of any Event of Default,
the Agent may, in its name or in the name of other Credit Parties and with the
written consent of the Required Purchasers, communicate with such Account
Debtors, parties to such Contracts, obligors in respect of such Instruments and
obligors in respect of such Chattel Paper to verify with such parties, to the
Agent’s satisfaction, the existence, amount and terms of any such Accounts,
Contracts, Instruments or Chattel Paper.

4.            REPRESENTATIONS
AND WARRANTIES.  Grantor
hereby represents and warrants to the Credit Parties that:

(a)           Grantor is the sole legal and equitable
owner of each item of the Collateral in which it purports to grant a security
interest hereunder having good and merchantable title or rights thereto, free
and clear of all Liens, except for the security interest granted to the Agent
under this Security Agreement and Permitted Liens.

(b)           Except as set forth in the Reports (as
defined in the Purchase Agreement), no effective security agreement, financing
statement, equivalent security or lien instrument or continuation statement
covering all or any part of the Collateral exists, except such as may have been
filed by Grantor in favor of the Agent pursuant to this Security Agreement and
except for Permitted Liens.

(c)           This Security Agreement creates a legal
and valid security interest on and in all of the Collateral in which Grantor
now owns or has rights therein.

(d)           Grantor’s taxpayer identification number
is, and chief executive office, principal place of business, and the place
where Grantor maintains its records concerning the Collateral are presently
located at the address set forth on the signature page hereof. The Collateral,
other than Deposit Accounts, Securities Accounts, Commodity Accounts and motor
vehicles and other mobile goods is presently located at such address and at
such additional addresses set forth on Schedule B attached
hereto.

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(e)           All Collateral of Grantor consisting of
Chattel Paper, Instruments or Investment Property is set forth on Schedule C attached hereto.

(f)            The name and address of each depository
institution at which Grantor maintains any Deposit Account and the account
number and account name of each such Deposit Account is listed on Schedule D attached hereto. 
The name and address of each securities intermediary or commodity
intermediary at which Grantor maintains any Securities Account or Commodity
Account and the account number and account name is listed on Schedule D attached hereto. 
Grantor agrees to amend Schedule D upon
Required Purchasers’ written request to reflect the opening of any additional
Deposit Account, Securities Account or Commodity Account, or closing or
changing the account name or number on any existing Deposit Account, Securities
Account, or Commodity Account.

(g)           All Copyrights, Copyright Licenses,
Patents, Patent Licenses, Trademarks and Trademark Licenses now owned or held
by Grantor are listed on Schedule E
attached hereto.  Grantor agrees to amend
Schedule E upon Required Purchasers’
written request to reflect any additional Copyrights registered with the United
States Copyright Office or  Trademarks or
Patents registered with the United States Patent and Trademark Office.

5.            COVENANTS.  Unless the Required Purchasers otherwise
consents (which consent shall not be unreasonably withheld), Grantor covenants
and agrees with the Credit Parties that from and after the date of this
Security Agreement and until the Secured Obligations have been performed and
paid in full:

5.1          Disposition of Collateral.  Grantor shall not sell, lease, transfer or
otherwise dispose of any of the Collateral (each, a “Transfer”),
or attempt or contract to do so, other than (a) the sale of Inventory in the
ordinary course of business, (b) the granting of Licenses in the ordinary
course of business, (c) the disposal of worn-out or obsolete Equipment and (d)
Transfers of Equipment for fair market value as determined by Grantor in its
good faith business judgment, not exceeding $50,000 in the aggregate in any
given fiscal year.

5.2          Change of Jurisdiction of Organization, Relocation of
Business.  Grantor
shall not change its jurisdiction of organization or relocate its chief
executive office, principal place of business or its records from such
address(es) provided to the Agent pursuant to Section 4(d)
above without at least seven (7) days prior notice to the Agent.

5.3          Limitation on Liens on Collateral.  Grantor shall not, directly or indirectly,
create, permit or suffer to exist, and shall defend the Collateral against and
take such other action as is necessary to remove, any Lien on the Collateral,
except (a) Permitted Liens and (b) the Lien granted to the Agent under this
Security Agreement.

5.4          Insurance.  Grantor shall maintain insurance policies
insuring the Collateral against loss or damage from such risks and in such
amounts and forms and with such companies as are customarily maintained by
businesses similar to Grantor.

5.5          Taxes, Assessments, Etc.  Grantor shall pay promptly when due all
property and other taxes, assessments and government charges or levies imposed
upon, and all claims (including claims for labor, materials and supplies)
against, the Equipment, Fixtures or

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Inventory, except to the extent the validity or amount
thereof is being contested in good faith and adequate reserves are being
maintained in connection therewith.

5.6          Defense of Intellectual Property.  Grantor shall use commercially reasonable
efforts to (i) protect, defend and maintain the validity and enforceability of
all Copyrights, Patents and Trademarks material to Grantor’s business and (ii)
detect infringements of all Copyrights, Patents and Trademarks material to
Grantor’s business.

5.7          Further Assurances.  At any time and from time to time, upon the
written request of the Required Purchasers, and at the sole expense of Grantor,
Grantor shall promptly and duly execute and deliver any and all such further
instruments and documents and take such further action as the Required
Purchasers may reasonably deem necessary or desirable to obtain the full
benefits of this Security Agreement, including, without limitation,
(a) executing, delivering and causing to be filed any financing or
continuation statements (including “in lieu” continuation statements) under the
UCC with respect to the security interests granted hereby, (b) at the Required
Purchasers’ reasonable request, filing or cooperating with the Agent in filing
any forms or other documents required to be recorded with the United States
Patent and Trademark Office or the United States Copyright Office, (c) at
the Required Purchasers’ reasonable request, placing the interest of the Agent
as lienholder on the certificate of title (or similar evidence of ownership) of
any vehicle, watercraft or other Equipment constituting Collateral owned by
Grantor which is covered by a certificate of title (or similar evidence of
ownership), (d) executing and delivering and using commercially reasonable
efforts to cause the applicable depository institution, securities
intermediary, commodity intermediary or issuer or nominated party under a
letter of credit to execute and deliver a collateral control agreement with
respect to any Deposit Account, Securities Account or Commodity Account or
Letter-of-Credit Right in or to which Grantor has any right or interest, and
(e) at the Required Purchasers’ reasonable request, using commercially
reasonable efforts to obtain acknowledgments from bailees having possession of
any Collateral and waivers of liens from landlords and mortgagees of any
location where any of the Collateral may from time to time be stored or
located.  Grantor also hereby authorizes
the Agent to file any such financing or continuation statement (including “in
lieu” continuation statements) without the signature of Grantor.

6.            RIGHTS AND
REMEDIES UPON DEFAULT.  Beginning
on the date which is ten (10) business days after any Event of Default shall have occurred and while
such Event of Default is continuing:

(a)           Upon the written consent of the Required
Purchasers, the Agent may exercise in addition to all other rights and remedies
granted to them under this Security Agreement and the Purchase Agreement all
rights and remedies of a secured party under the UCC.  Without limiting the generality of the
foregoing, Grantor expressly agrees that in any such event the Agent, without
demand of performance or other demand, advertisement or notice of any kind (except
the notice specified below of time and place of public or private sale) to or
upon Grantor or any other person, may (i) reclaim, take possession, recover,
store, maintain, finish, repair, prepare for sale or lease, shop, advertise for
sale or lease and sell or lease (in the manner provided herein) the Collateral,
and in connection with the liquidation of the Collateral and collection of the
accounts receivable pledged as Collateral, use any Trademark, Copyright, or
process used or owned by  Grantor and (ii)
forthwith collect, receive, appropriate and realize

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upon the Collateral, or any part thereof, and may
forthwith sell, lease, assign, give an option or options to purchase or sell or
otherwise dispose of and deliver said Collateral (or contract to do so), or any
part thereof, in one or more parcels at public or private sale or sales, at any
exchange or broker’s board or at Agent’s offices or elsewhere at such prices as
it may deem commercially reasonable, for cash or on credit or for future
delivery without assumption of any credit risk. 
Grantor further agrees, at the Required Purchasers’ request, to assemble
its Collateral and make it available to the Agent at places which the Agent
shall reasonably select, whether at Grantor’s premises or elsewhere.  The Agent shall apply the net proceeds of any
such collection, recovery, receipt, appropriation, realization or sale as
provided in Section 6(e) below, with
Grantor remaining liable for any deficiency remaining unpaid after such
application.  Grantor agrees that the
Agent need not give more than twenty (20) days’ prior written notice of the
time and place of any public sale or of the time after which a private sale may
take place and that such notice is reasonable notification of such matters.

(b)           As to any Collateral constituting
certificated securities or uncertificated securities, if, at any time when
Agent shall determine to exercise its right to sell the whole or any part of
such Collateral hereunder, such Collateral or the part thereof to be sold shall
not, for any reason whatsoever, be effectively registered under Securities Act
of 1933, as amended (as so amended the “Act”),
the  Agent may, in its discretion
(subject only to applicable requirements of law), sell such Collateral or part
thereof by private sale in such manner and under such circumstances as the
Agent may deem necessary or advisable, but subject to the other requirements of
this Section 6(b), and shall not be
required to effect such registration or cause the same to be effected.  Without limiting the generality of the
foregoing, in any such event the Agent may, in its discretion, (i) in
accordance with applicable securities laws, proceed to make such private sale
notwithstanding that a registration statement for the purpose of registering
such Collateral or part thereof could be or shall have been filed under the
Act; (ii) approach and negotiate with a single possible purchaser to
effect such sale; and (iii) restrict such sale to a purchaser who
will represent and agree that such purchaser is purchasing for its own account,
for investment, and not with a view to the distribution or sale of such
Collateral or part thereof.  In addition
to a private sale as provided above in this Section 6(b),
if any of such Collateral shall not be freely distributable to the public
without registration under the Act at the time of any proposed sale hereunder,
then the Agent shall not be required to effect such registration or cause the
same to be effected but may, in their discretion (subject only to applicable
requirements of law), require that any sale hereunder (including a sale at
auction) be conducted subject to such restrictions as the Agent may, in its
discretion, deem necessary or appropriate in order that such sale
(notwithstanding any failure so to register) may be effected in compliance with
the Bankruptcy Code and other laws affecting the enforcement of creditors’
rights and the Act and all applicable state securities laws.

(c)           Grantor also agrees to pay all fees,
costs and expenses of the Agent, including, without limitation, reasonable attorneys’
fees, incurred in connection with the enforcement of any of its rights and
remedies hereunder.

(d)           Grantor hereby waives presentment,
demand, protest or any notice (to the maximum extent permitted by applicable
law) of any kind in connection with this Security Agreement or any Collateral.

 10
 

 

(e)           The Proceeds of any sale, disposition or
other realization upon all or any part of the Collateral shall be distributed
by the Agent in the following order of priorities, subject to any subordination
to the Senior Lenders:

FIRST,
to Agent in an amount sufficient to pay in full the reasonable costs of the
Agent in connection with such sale, disposition or other realization, including
all fees, costs, expenses, liabilities and advances incurred or made by Agent in
connection therewith, including, without limitation, reasonable attorneys’
fees;

SECOND,
to the Credit Parties in amounts proportional to the Pro Rata share of the then
unpaid Secured Obligations of each Credit Party; and

FINALLY,
upon payment in full of the Secured Obligations, to Grantor or its
representatives, in accordance with the UCC or as a court of competent
jurisdiction may direct.

(f)            The costs of
enforcing or pursuing any right or remedy hereunder, including without
limitation any repossession, sale, possession and management (including,
without limitation, reasonable attorneys’ fees), and distribution shall be
borne Pro Rata by the Credit Parties. 
Each Credit Party shall reimburse the Agent for its Pro Rata share of
all such costs promptly upon demand.

7.            UNEQUAL
PAYMENT BY GRANTOR.  Each
Credit Party agrees that if it shall obtain or receive, through the exercise of
any right granted to the Agent under this Security Agreement, under the Notes,
the Purchase Agreement or by applicable law, including, but not limited to any
right of set-off, any secured claim under Section 506 of the Bankruptcy
Code or any other security or interest, any payment or payments greater than
its Pro Rata share of all Loans, as measured immediately prior to the receipt
of such payment or payments, then (a) such Credit Party shall promptly purchase
at par (and shall be deemed to have thereupon purchased) from other Credit
Parties, a participation in the Loans of such other Credit Parties, so that
each Credit Party shall have received payments in proportion to its Pro Rata
share immediately prior to such transactions and (b) such other adjustments
shall be made from time to time as shall be equitable to ensure that the Credit
Parties share the benefits of such payment on a Pro Rata basis.  The term “Loan” as used in this paragraph
shall include accrued interest thereon.

8.            INDEMNITY.  Grantor agrees to defend, indemnify and hold
harmless the Credit Parties and their officers, employees, and agents against
(a) all obligations, demands, claims, and liabilities claimed or asserted by
any other party in connection with the transactions contemplated by this
Security Agreement and (b) all losses or expenses in any way suffered,
incurred, or paid by any Credit Party as a result of or in any way arising out
of, following or consequential to transactions between any Credit Party and
Grantor, whether under this Security Agreement or otherwise (including without
limitation, reasonable attorneys fees and expenses), except for losses arising
from or out of such Credit Party’s gross negligence or willful misconduct.

9.            REINSTATEMENT.  This Security Agreement shall remain in full
force and effect and continue to be effective should any petition be filed by
or against Grantor for liquidation or reorganization, should Grantor become
insolvent or make an assignment for the benefit of

 11
 

 

creditors or should a receiver or trustee be appointed
for all or any significant part of Grantor’s property and assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise
be restored or returned by any obligee of the Secured Obligations, whether as a
“voidable preference,” “fraudulent conveyance,” or otherwise, all as though
such payment or performance had not been made. 
In the event that any payment, or any part thereof, is rescinded,
reduced, restored or returned, the Secured Obligations shall be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.

10.         MISCELLANEOUS.

10.1        Waivers; Modifications.  None of the terms or provisions of this
Security Agreement may be waived, altered, modified or amended except by an
instrument in writing, duly executed by Grantor and the Required
Purchasers.  Each Credit Party
acknowledges that because this Security Agreement may be amended with the
consent of the Required Purchasers, the Agent’s and/or the Credit Parties
rights hereunder may be amended or waived without such Credit Party’s consent
as provided in Section 7 of the Purchase
Agreement.

10.2        Termination of this Security Agreement.  Subject to Section 9
hereof, this Security Agreement shall terminate upon the payment and
performance in full of the Secured Obligations, and the Agent shall promptly
take such action as may be necessary to release its lien on the Collateral at
the sole expense of Grantor.

10.3        Successor and Assigns.  This Security Agreement and all obligations
of Grantor hereunder shall be binding upon the successors and assigns of
Grantor, and shall, together with the rights and remedies of the Credit Parties
hereunder, inure to the benefit of the Credit Parties, any future holder of any
of the indebtedness and their respective successors and assigns.  No sales of participations, other sales,
assignments, transfers or other dispositions of any agreement governing or
instrument evidencing the Secured Obligations or any portion thereof or
interest therein shall in any manner affect the lien granted to the Agent
hereunder.

10.4        Governing Law.  In all respects, including all matters of
construction, validity and performance, this Security Agreement and the Secured
Obligations arising hereunder shall be governed by, and construed and enforced
in accordance with, the laws of the State of New York applicable to contracts
made and performed in such state, without regard to the principles thereof
regarding conflict of laws, except to the extent set forth in the provisio of
the definition of UCC.

IN WITNESS WHEREOF, each of the
parties hereto has caused this Security Agreement to be executed and delivered
by its duly authorized officer on the date first set forth above.

 12
 

 

 

	
  ADDRESS OF GRANTOR

  	
   

  	
  CRYSTAL INTERNATIONAL TRAVEL GROUP,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Fabrizzio Busso-Campana

  
	
   

  	
   

  	
  Printed Name: 
  Fabrizzio Busso-Campana

  
	
   

  	
   

  	
  Title:  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
  TAXPAYER
  IDENTIFICATION NUMBER OF

  GRANTOR

  	
   

  	
  JURISDICTION OF ORGANIZATION OF

  GRANTOR

  
	
   

  	
   

  	
   

  
	
  20-0121007

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND ACKNOWLEDGED BY:

  	
   

  	
   

  
	
  Arnold
  Income Fund LP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward H.
  Arnold

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Edward H. Arnold

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Managing Member

  	
   

  	
  Title:

  	
   

  
									

 

 13

 

SCHEDULE
A

Liens
Existing On The Date Of This Security Agreement

 

SCHEDULE
B

Location
of Collateral

	
  Entity

  	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
  Bank of Somerset Hills

  	
   

  	
  155 Morristown Road

  Bernardsville, NJ  07924

  

 

 

SCHEDULE
C

LIST OF COLLATERAL DELIVERED BY GRANTOR TO SECURED PARTIES

None

 

SCHEDULE
D

DEPOSIT ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITY
ACCOUNTS

(Including Grantor, Type of Account, Account Name, Account
Number and Name of Institution/Intermediary)

BANK OF
SOMERSET HILLS

CHECKING
ACCOUNT # 980413561                     CRYSTAL HOSPITALITY HOLDINGS INC

 

SCHEDULE
E

INTELLECTUAL PROPERTY

Toll Numbers

(800) 357-2400

(800) 464-0529

(800) 464-2719

(800) 497-3117

(800) 497-3171

(800) 497-8990

(800) 786-1785

(800) 786-1809

(800) 786-1810

(800) 786-2729

(800) 786-3279

(800) 786-3293

(800) 786-4357

(800) 786-4477

(800) 786-7253

(800) 786-8288

(800) 786-8747

(800) 786-8818

(800) 786-8820

(800) 786-8828

(800) 786-8890

(866) 438-6786

(866) 558-3696

(877) 561-5403

(877) 561-5404

(877) 561-5405

(877) 786-1847

(877) 786-4292

(877) 786-4294

(877) 786-4777

(877) 834-6937

(877) 834-6940

(888) 238-0524

(888) 238-0525

(888) 266-5847

(888) 786-1388

(888) 786-3293

(888) 786-4733

(888) 786-5484

(888) 786-8818

 

(888) 847-7737

(888) 888-5019

(888) 888-5024

(888) 888-5026

(888) 888-5030

URL / Domain Names

www.suntrips.com

www.snow-trips.com

www.snow-trips.net

www.snowtrips.net

www.oturl.com

www.oturl.net

www.oturl.biz

www.oturl.info

www.suntripsodyssey.com

www.suntripsodysseymagazine.com

www.suntripspass.com

www.suntripspass.net

www.suntripspass.org

Registered Brands / Trademarks

SUNTRIPSTM

NOBODY BEATS SUNTRIPSTM

VAMONOSTM

BOOK ‘ EM FARESTM

SLIP INTO SOMETHING A LITTLE MORE COMFORTABLETM

PIPELINE TO PARADISETM

HOT DEALS UNDER THE SUNTM

SNOWTRIPSTM

SUNSATIONALTM

GO MONTM

Customer Database(s)

RSI-1

RSI-2

RSI-3

RSI-WEBExhibit 10.5

 

NET PROFIT

RESTRICTED SHARE AWARD

UNDER THE

2005 OMNIBUS STOCK AND INCENTIVE PLAN

for

THOMAS GROUP, INC.

Effective as of April 27,
2006 (“Date of Grant”), a NET
PROFIT RESTRICTED SHARE AWARD (“Award”) is granted by
Thomas Group, Inc. (the “Company”) to
Terry D. Stinson (the “Holder”),
provided, further, that this Award is in all respects subject to the terms,
definitions and provisions of the 2005 Omnibus Stock and Incentive Plan For
Thomas Group, Inc. (the “Plan”), all of
which are incorporated herein by reference, except to the extent otherwise
expressly provided in this Award.

WITNESSETH

WHEREAS, the Company desires to grant to Holder
50,000 Shares subject to certain restrictions described herein; and

WHEREAS, the Company desires to grant to Holder a Cash
Bonus of $50,000 subject to the satisfaction of certain conditions described
herein; and

WHEREAS, the purpose of this Award is to advance the
interests of the Company and increase shareholder value by providing additional
incentives to attract, retain and motivate Holder; and

WHEREAS, the terms of the Award, including without
limitation the Restrictions imposed on Restricted Shares and Cash Bonus, are
set forth below; and

WHEREAS, the Plan is effective as of December 20, 2005, the date of its adoption
by the Board, subject to approval by a majority of the Company’s stockholders
and compliance with Regulation 14C under the 1934 Act; provided, however, that
if the Plan is not so approved or there has not been compliance with Regulation
14C by December 20, 2006, this Award shall terminate and be null and void ab
initio; and provided, further, that no Restricted Shares will Vest prior to
such stockholder approval and compliance with Regulation 14C.

NOW THEREFORE, in consideration of the mutual covenants
hereinafter set forth and for other good and valuable consideration, the
parties agree as follows:

1.             Definitions.  As
used in this Award, the following words shall have the following meanings:

“Accounting Firm” shall mean the Company’s certified
public accounting firm on the date of reference.

“Anniversary Date” shall mean each anniversary of the Date of
Grant.

“Annual Profit” shall mean the net income of the Company
before interest expense, interest income, gain (loss) on sale of equipment,
gain (loss) on investment, gain on sale of land, depreciation, amortization,
taxes on income, extraordinary items, and the expense attributable to the grant
of the 

 1
 

 

Award, all as determined by the Accounting Firm using generally
accepted accounting principles and as reflected on the Company’s
certified Financial Statements to
the extent shown or reflected on such Financial Statements.  For this purpose, extraordinary items are
those of a non-recurring and unusual nature, or resulting from unforeseen and
atypical events, as determined by the Accounting Firm using generally accepted
accounting principles and as reflected on the Company’s certified
Financial Statements as prepared by the Accounting Firm to the extent shown or reflected on such Financial Statements.

“Annual Profit Increase
Percentage” shall
mean, for each Year, the quotient of (i) the excess (if any) of the Annual
Profit for the current Year over the greater of (x) the Annual Profit for the
year 2005; and (y) the Annual Profit for the preceding Year, divided by (ii)
the greater of (x) or (y).

“Award Shares” shall mean all Shares subject to this Award,
including, without limitation, both Restricted Shares and Vested Shares.

“Award Share
Distributions” shall mean any amounts of cash, or stock, paid or
distributed by the Company with respect to Award Shares.

“Board”
shall mean the Board of Directors of the Company.

“Cash Bonus”
shall mean the amount described in Section 4.

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

“Compensation Committee” shall
mean the Compensation and Corporate Governance Committee of the Board.

“Involuntary Termination” shall mean Holder’s Separation by reason of
either (i) being discharged by the Company, or (ii) the expiration of his “Term
of Employment” (as defined in his Second Amended Employment Agreement and the
comparable term in any successor employment agreement or amendment, hereafter
Holder’s “Employment Agreement”) unless, prior to the later of (i) the 45th day
following the date on which Holder delivers a written notice to the Board of
the impending expiration of his Term of Employment (which notice will not be
considered delivered if the purported delivery is made more than 60 days prior
to the date on which his Term of Employment expires), or (ii) the date on which
his Term of Employment expires, the Board has offered in writing (x) to extend
Holder’s Term of Employment for a period of at least 12 months, (y) to appoint
Holder to serve as President and Chief Executive Officer of the Company during
such extended Term of Employment, and (z) to pay Holder, during the extended
Term of Employment, a base salary at least equal to the Holder’s Base Salary
(as defined in the Employment Agreement) as in effect on the last day of the
expiring Term of Employment.

 “Restrictions” shall mean the requirement
that the Award Shares be returned to the Company under certain circumstances
described in this Award, and which requirement shall constitute a “substantial
risk of forfeiture” as defined under Section 83(a)(1) of the Code.

“Restricted Period”
shall mean the period during which Award Shares remain subject to Restrictions.

“Restricted Shares”
shall mean the Award Shares which remain subject to the Restrictions at the
time of reference.

 2
 

 

 

“Retention Period” shall mean the period beginning with the
Date of Grant, and ending on the date of Holder’s Separation.

“Separation” shall mean Holder’s termination of full time
employment by the Company for any reason.

“Share(s)” shall mean shares of common
stock, par value $.01 per share, of the Company.

 “Termination Date”
shall mean the date on which the Award terminates under Section 9.

“Year” shall mean the fiscal year of the Company.

“Vest”, “Vested” “Vested Shares” and similar shall mean the Award
Shares with respect to which the Restrictions have lapsed at the time of
reference.

2.             Restricted
Share Award.  The Company hereby transfers and delivers to
Holder an aggregate of 50,000 Restricted Shares to hold on the terms and
conditions set forth in this Award. 
Holder shall not be entitled to receive Restricted Share Distributions
made prior to the date on which Restricted Shares become Vested Shares, but
Holder will be entitled to receive any Restricted Share Distributions which are
made with respect to Restricted Shares after they become Vested Shares.

3.             Lapse
of Restrictions (Vesting).  The Restrictions on the Restricted Shares
shall lapse, and such Restricted Shares shall become Vested Shares, with
respect to 16,667 Restricted Shares on the last day of any Year in which the
Company achieves at least a 15% Annual Profit Increase Percentage.  Notwithstanding the forgoing, in the event
this Award terminates by reason of Holder’s Separation as a result of his
Involuntarily Termination without Cause, or as a result his resignation for
Good Reason within 12 months following a Change in Control, then Holder will
Vest in 16,667 Restricted Shares, and $16,667 of the Cash Bonus, on such date
of Separation and, without limitation, will forfeit all of the Award Shares
which remain Restricted Shares and the remaining unpaid Cash Bonus immediately
following such date of Separation.  Notwithstanding
any provision of this Award to the contrary, in the event that the acceleration
of the Vesting described in the preceding sentence occurs as a result of Holder’s
Separation following a Change in Control, then if the distribution of the Award
Shares which became Vested Shares and the $16,667 Cash Bonus as a result of the
acceleration of Vesting due to Holder’s Separation following the Change in
Control, when taken together with the
sum of any amounts or benefits otherwise paid or distributed to the Holder by
the Company or any affiliated company of the Company (collectively the “Covered
Payments”), would cause Holder to be subject to the tax (the “Excise Tax”)
imposed under Section 4999 of the Code or any similar tax that may hereafter be
imposed, the amount of the Cash Bonus will be reduced and, thereafter, if
necessary, the number of Restricted Shares which will become Vested Shares and
distributed shall be limited, to that amount of Cash Bonus and that number of
Shares which will cause the Covered Payments to be $1.00 less than the amount
which causes such Covered Payments to be subject to the Excise Tax; provided,
further, that nothing herein shall preclude Holder from directing the Company
to adjust some or all of the other amounts or benefits which comprise the
Covered Payments so as to limit or eliminate entirely the reduction in the Cash
Bonus and the number of Restricted Shares which will become Vested Shares.

4.             Cash
Bonus.  As soon as
reasonably possible following any Year in
which the Company achieves at least a 15% Annual Profit Increase Percentage,
the Company shall pay Holder a Cash Bonus of $16,667.

 3
 

 

 

5.             Withholding.  On
each date on which Restrictions lapse, and on the payment of the Cash Bonus,
Holder shall be required to pay to the Company, in cash, the amount which the
Company reasonably determines to be necessary in order for the Company to
comply with applicable federal or state income tax withholding requirements and
the collection of employment taxes; provided, further, that the Company, in its
sole discretion, may offset the amount it reasonably determines as necessary to
withhold from the Cash Bonus otherwise payable to Holder.

6.             Status
of Holder With Respect to Restricted Shares. 
During the Restricted Period, the certificates representing the
Restricted Shares shall be registered in the Holder’s name and bear a
restrictive legend disclosing the Restrictions. 
Such certificates shall be deposited by the Holder with the Company,
together with stock powers or other instruments of assignment, each endorsed in
blank, which will permit the transfer to the Company of all or any portion of
the Restricted Shares which are forfeited. 
Restricted Shares shall not constitute issued and outstanding common
stock for any corporate purposes and the Holder shall have no rights, powers
and privileges of a Holder of unrestricted Shares until such Restricted Shares
become Vested Shares, at which time, with respect to Vested Shares, the Holder
shall have all rights, powers and privileges of a Holder of unrestricted
Shares, including with respect to those Vested Shares which continue to be held
by the Company during the Retention Period.

At each time Restricted Shares become Vested, the Company shall deliver
to the Holder 40% of the such Vested Shares, and shall continue to hold the
remaining 60% percent of Vested Shares during the Retention Period, and shall,
as soon as reasonably possible after the end of such Retention Period, deliver
all retained Vested Shares to Holder. 
Without limitation, the Company’s right to hold the 60% of retained
Vested Shares during the Retention Period shall survive the Termination Date.

All Award Share Distributions with respect to Vested Shares shall be
immediately paid to Holder, except that where such Award Share Distribution is
in the form of Shares, such Shares shall be retained until the end of the
Retention Period.

As a condition of the grant of Restricted Shares, and the issuance of
Vested Shares, the Board may obtain such agreements or undertakings, if any, as
the Board may deem necessary or advisable to assure compliance with any law or
regulation including, but not limited to, the following:

(a)           a
representation, warranty or agreement by Holder to Company that he is acquiring
the Vested Shares to be issued to him for investment and not with a view to, or
for sale in connection with, the distribution of any such Vested Shares
subsequent to the Retention Period; and

(b)           a
representation, warranty or agreement to be bound by any legends that are, in
the opinion of the Board, necessary or appropriate to comply with the
provisions of any securities law deemed by the Board  to be applicable to the issuance of the
Vested Shares and are endorsed upon the Share certificates.

7.             Transferability
of Restricted Shares.  The Vested Shares held by the Company during
the Retention Period, and this Award, shall not be transferable by Holder.

8.             Section 83(b) Election. 
Holder, having been granted Restricted Shares subject to a “substantial
risk of forfeiture,” may elect under Section 83(b) of the Code to include in
his gross income the fair market value (determined without regard to the
Restrictions) of such Restricted Shares as of the Date of Grant.  If Holder makes the Section 83(b) election,
Holder shall (i) make such election in a manner that is satisfactory to the
Company, (ii) provide the Company with a copy of such election, (iii) agree to
promptly notify the Company if any Internal Revenue Service or state tax agent,
on audit or otherwise, 

 4
 

 

questions the validity or correctness of such election or of the amount
of income reportable on account of such election, and (iv) agree to such
federal and state income withholding as the Company may reasonably require in
its sole and absolute discretion.

9.             Termination
of the Award.  Without
limitation, this Award shall automatically terminate and expire on the earlier
of (i) the date on which all Restricted Shares have become Vested Shares, or
(ii) the date of Holder’s Separation, and upon the date of such termination of
the Award all Restricted Shares which have not Vested on or prior to such date
will be permanently forfeited.

10.          Interpretation
of the Award Provisions.  The Compensation Committee shall have the
authority to the full extent provided under the terms of the Plan to interpret
all terms of the Plan and this Award, and to otherwise supervise the
implementation of such terms.

11.          Governing
Law.  TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE
LAW, THIS AWARD SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS.

12.          Binding
Effect.  This Award shall inure to the benefit of and
be binding upon the heirs, executors, administrators, successors and assigns of
the parties hereto.

13.          Amendments.  This Award may only
be amended by a written document signed by the Company and Holder.

14.          Severability.  If
any provision of this Award is declared or found to be illegal, unenforceable
or void, in whole or in part, the remainder of this Award will not be affected
by such declaration or finding and each such provision not so affected will be
enforced to the fullest extent permitted by law.

15.          Counterparts.  This Award may be
executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

IN WITNESS
WHEREOF, the Company
has caused these presents to be executed on its behalf and its corporate seal
to be affixed hereto by its duly authorized representative, and Holder has
hereunto set his or her hand, all on the day and year first above written.

	
  

  	
   

  	
  THOMAS GROUP, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

ACKNOWLEDGMENT

Holder agrees to be bound by all the terms of this
Award and the Plan.

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  Terry D. Stinson

  

 

 5

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