Document:

Exhibit 10.1 Collateral Agreement ManTech GSE

     

     

     Exhibit
      10.1

    

    COLLATERAL
      AGREEMENT

    

    This
      Collateral Agreement (hereinafter the "Agreement") is dated and effective as
      of
      July 9, 2003, and is by and between GSE Systems, Inc. ("GSE") and ManTech
      International Corporation ("ManTech"). GSE and ManTech may hereinafter be
      collectively referred to as the "Parties."

    

    WITNESSETH:

    

    WHEREAS,
      GSE recently received the award of a contract for the Laguna Verde Simulator
      (hereinafter the "Laguna Verde Contract"); and

    

    WHEREAS,
      the Laguna Verde Contract requires the issuance of payment and performance
      bonds
      (hereinafter the "Bonds") by a Mexican surety company; and

    

    WHEREAS,
      GSE has identified a Mexican surety company that is willing to issue such Bonds;
      and

    

    WHEREAS,
      such Mexican surety company, Fianzas Guardiana Inbursa, S.A. (hereinafter
      "FGI"), is willing to issue such Bonds only upon the receipt of 100% collateral
      in the form of letters of credit ("Letters of Credit"); and

    

    WHEREAS,
      ManTech is willing to issue such Letters of Credit to FGI on GSE's behalf based
      on the terms and conditions contained herein.

    

    NOW
      THEREFORE, in consideration of the mutual representations, warranties, covenants
      and agreements contained herein, and other valuable consideration, the receipt
      and sufficiency of which are hereby acknowledged, the Parties do hereby agree
      as
      follows:

    

    1.
      Letters
      of Credit.
      ManTech
      agrees to issue one or more Letters of Credit to FGI for (i) an Advance Payment
      Bond in the amount of $2,060,739.89 with an issuance date of June 20, 2003
      for a
      period of 30 months or when the Advance Payment Bond is released, whichever
      is
      later, and (ii) a Performance Bond in the amount of $1,317,602.80 with an
      issuance date of June 20, 2003 for a period of 42 months or when the Performance
      Bond is otherwise released, whichever is later.

    

    2.
      Consideration
      to ManTech.
      As
      consideration for ManTech's issuance of the Letters of Credit, GSE will (i)
      issue ManTech 100,000 warrants at the market price of GSE's common stock as
      of
      the close of business on July 8, 2003, based on an agreement reasonably
      acceptable to ManTech, and (ii) pay ManTech a fee equal to 7% per annum on
      the
      total amount of the then-existing value of the Letters of Credit payable on
      a
      quarterly basis. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.
      Prepayment Allowance.
      Subject
      to approval by GSE's lender, GSE may prepay the amounts under the Letters of
      Credit at any time, in whole or in part, without penalty or premium, which
      shall
      result in a cancellation thereof, in whole or in part. Any such prepayment
      shall
      first be applied to any accrued and unpaid interest, if any, and thereafter
      to
      the principal outstanding under the Letters of Credit.

    

    4.
      GSE
      Representations. GSE
      represents and warrants to ManTech that:

    

    
      	
              (A)
                

            	
              It
                is a corporation duly organized, validly existing and in good standing
                under the laws of the State of
                Delaware;

            

    

    

    
      	
              (8)
                

            	
              It
                is duly qualified, in good standing and authorized to do business
                in each
                jurisdiction where because of the nature of its activities or properties
                such qualification is required by applicable laws or the failure
                to be so
                qualified could have a material adverse effect on
                GSE;

            

    

    

    
      	
              (C)
                

            	
              It
                has the power to enter into this Agreement, to deliver this Agreement
                and
                to perform its obligations under this Agreement and has taken all
                necessary action to authorize such execution, delivery and
                performance;

            

    

    

    
      	
              (D)
                

            	
              The
                execution, delivery and performance of this Agreement by GSE does
                not and
                will not violate or conflict with any law applicable to it, any provision
                of its organizational documents, any order or judgment of any court
                or
                other agency of government applicable to it or any of its assets
                or any
                contractual restriction binding on or affecting it or any of its
                assets;

            

    

    

    
      	
              (E)
                

            	
              All
                governmental and other consents, authorizations, approvals, licenses
                and
                orders that are required to have been obtained by it with respect
                to this
                Agreement and the transactions contemplated herein have been obtained
                and
                are in full force and effect and all conditions of any such consents,
                authorizations, approvals, licenses and orders have been complied
                with;

            

    

    

    
      	
              (F)
                

            	
              Its
                obligations under this Agreement constitute its legal, valid and
                binding
                obligations, enforceable in accordance with their respective terms
                [subject to applicable bankruptcy, reorganization, insolvency, moratorium
                or similar laws affecting creditors' rights generally and subject,
                as to
                enforceability, to equitable principles of general application (regardless
                of whether enforcement is sought in a proceeding in equity or at
                law)];
                and

            

    

    

    
      	
              (G)
                

            	
              There
                is not pending or threatened against it any action, suit or proceeding
                at
                law or in equity or before any court, tribunal, governmental body,
                agency
                or official or any arbitrator that is likely to (1) affect the legality,
                validity or enforceability against it of this Agreement or its ability
                to
                perform

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    its
      obligations hereunder, or (2) materially affect its operations, business,
      property or assets or financial or other condition.

    

    
      	
              (H)
                

            	
              GSE's
                lender has consented to the transactions contemplated herein and
                GSE shall
                further covenant that its current business loan and security agreement
                shall not be modified or amended to limit or prohibit the performance
                of
                any of GSE's obligations hereunder in the
                future.

            

    

    

    5.
      Reporting
      Requirements.

    

    
      	
              (A)
                

            	
              Upon
                request, but in no event more frequently than once in any three
                consecutive calendar month period, GSE shall provide ManTech with
                a
                detailed written status report on the Laguna Verde Contract. This
                report
                shall include, but is not limited to, major project activities for
                the
                applicable period, tracking and accomplishment of technical and payment
                milestones, and open issues with the customer and
                subcontractors.

            

    

    

    
      	
              (B)
                

            	
              On
                a monthly basis, GSE shall provide Mr. John A. Moore, Jr., ManTech
                Executive Vice President, with a detailed status and activities report
                on
                the Laguna Verde Contract. This report, which may be in writing or
                by oral
                briefing at Mr. Moore's option, shall be sufficient to allow Mr.
                Moore to
                understand the major project activities, accomplishment of technical
                and
                payment milestones, and open issues with the customer and
                subcontractors.

            

    

    

    6.
      Miscellaneous.

    

    
      	
              (A)
                

            	
              This
                Agreement shall not be transferable or assignable by GSE without
                ManTech's
                prior written consent.

            

    

    

    
      	
              (B)
                

            	
              ManTech
                may freely assign or transfer all or any portion of its interest
                in this
                Agreement without the consent of GSE and in the event ManTech collaterally
                assigns or transfers its right, title and interest in and to this
                Agreement to its lender(s) under a current business loan and security
                agreement, as such agreement may be further amended, modified or
                replaced
                from time to time, GSE agrees to execute and deliver such documents,
                instruments and agreements as such lender(s) may reasonably require
                in
                connection therewith.

            

    

    

    
      	
              (C)
                

            	
              If
                any provisions of this Agreement are held to be invalid, void or
                unenforceable, the remaining provisions hereof shall not be affected
                or
                impaired, and such remaining provisions shall remain in full force
                and
                effect.

            

    

    

    
      	
              (D)
                

            	
              This
                Agreement shall be governed and construed in accordance with the
                laws of
                the State of Maryland, excluding its conflict of laws
                principles.

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              (E)
                

            	
              This
                Agreement may be executed in one or more counterparts, each of which
                shall
                for all purposes be deemed an original and all of which shall constitute
                the same instrument.

            

    

    

    
      	
              (F)
                

            	
              GSE
                agrees to indemnify and hold harmless ManTech from any and all costs,
                damages, claims, actions, demands, losses and expenses (including
                the
                value of the Letters of Credit drawn upon, reasonable attorneys'
                fees,
                collection fees or enforcement fees) in the event the Letters of
                Credit
                are drawn upon for any reason. Any payments due hereunder shall be
                paid to
                ManTech no later than two (2) business days following GSE's receipt
                of
                written notice specifying the amounts
                due.

            

    

    

    
      	
              (G)
                

            	
              The
                Parties acknowledge that this Agreement and GSE's obligations hereunder
                are subject to a current business loan and security agreement between
                GSE
                and its lender, as such agreement may be further amended, modified
                or
                replaced from time to time.

            

    

    

    
      	
              (H)
                

            	
              This
                Agreement is the exclusive and complete understanding and agreement
                between the Parties regarding the subject matter hereof and supersedes
                all
                prior negotiations, agreements, understandings or representations
                between
                the Parties regarding the subject matter hereof, whether oral or
                written.
                This Agreement may be amended only by a written amendment signed
                by the
                Parties hereto.

            

    

    

    IN
      WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of
      the
      date first above written.

    

    GSE
      Systems, Inc.

    

    

    By:
      _/s/ Chin-our Jerry Jen_________

    Name:
      Chin-our Jerry Jen

    Title:
      President & COO

    

    ManTech
      International Corporation

    

    

    By:
      _/s/ Ronald R. Spoehl_________

    Name:
      Ronald R. Spoehel

    Title:
      Executive Vice President & CFO

     

     

    4EX-10.1

 

JAG MEDIA HOLDINGS,
INC.

6865 S.W. 18th Street, Suite B13

Boca Raton, FL 33433

May 18, 2007

Cryptometrics, Inc.

73 Main Street

Tuckahoe, NY 10707

Re:    Agreement Amending Merger Agreement Among JAG Media Holdings, Inc. (“JAG

        Media”), Cryptometrics Acquisition, Inc. (“Cryptometrics Acquisition”),

        Cryptometrics, Inc. (“Cryptometrics”), Robert Barra, Michael Vitale,

        Karlen & Stolzar, Thomas J. Mazzarisi and Stephen J. Schoepfer

        (collectively, the “Parties”) dated as of January 24, 2007, as Further

        Amended by those Certain Agreements Among the Parties dated as of February

        26, 2007, April 2, 2007, April 20, 2007 and May 11, 2007 (“Merger

        Agreement Amendment”)

Gentlemen:

This will confirm our understanding regarding the following changes to the
Merger Agreement Amendment, which have been authorized by the directors of JAG
Media, Cryptometrics Acquisition and Cryptometrics:

1.     The Automatic Termination Date of May 18, 2007 set forth in the first
sentence of paragraph 9 of the Merger Agreement Amendment is hereby changed to
June 15, 2007.

2.     Contemporaneously with the execution of this agreement, Cryptometrics shall
pay $167,659.84 in additional transaction costs, which amount shall be paid on
behalf of JAG Media, to the relevant legal and accounting firms providing
services to JAG Media in connection with the transaction. Such payments shall
be made by Cryptometrics via wire transfer directly to such parties, in
accordance with wire transfer instructions to be provided by JAG Media.

3.     Cryptometrics also agrees to pay on behalf of JAG Media up to $150,000 of
various remaining transaction costs, not covered by the payments in paragraph 2
above, incurred prior to any termination of the Merger Agreement, required to
close the transaction as and when those payments become due and payable, which
costs are currently estimated to be approximately $150,000.

4.     In consideration of the payments agreed to be made in paragraph 2 above, JAG
Media hereby grants (and shall, within five business days after payment of the
amounts in paragraph 2 above, cause to be granted by Pixaya (UK) Limited
(“Pixaya”)) to Cryptometrics a non-exclusive, royalty free, perpetual, with
rights of survivorship,

 

personal license to use all of its source codes and related design and
development documents and other intellectual property (excluding the SurvayaCam
and Pixaya names and marks) related to all of its current Pixaya products
including its Pixaya SurvayaCam product (collectively, the “Licensed Property”)
solely for the purpose of allowing Cryptometrics and its subsidiaries to
develop and exploit their own lines of products (“Licensed Products”) by
incorporating Licensed Property therein; but not for use in any stand-alone
product that competes directly with a current product of Pixaya other than
facial recognition, access control, critical infrastructure protection or
intelligent video analysis products/systems, and Cryptometrics and its
subsidiaries shall not disclose to any third party such source codes or any
other trade secret information included within the Licensed Property. Except
as expressly set forth in this paragraph 4, nothing herein contained shall be
construed as a grant of any rights or licenses to any JAG Media or Pixaya
technology or intellectual property. JAG Media, on behalf of itself and
Pixaya, disclaims any and all warranties, express or implied, including without
limitation any warranty of merchantability, fitness for any particular use or
purpose, or of non-infringement of any third party rights. Cryptometrics shall
indemnify, defend and hold harmless JAG Media, Pixaya and their respective
officers, directors, employees and representatives, of and from any and all
claims and liability arising out of or in connection with the commercialization
of any Licensed Product or use pursuant to this paragraph 4 of any Licensed
Property. JAG Media represents and warrants to CryptoMetrics that Pixaya is its
wholly owned subsidiary and that JAG Media has the power to cause it to grant
the license referred to herein.

5.     If the Merger Agreement is terminated by JAG Media or Cornell Capital for
any reason, JAG Media shall issue to Cryptometrics 500,000 shares of Parent
Common Stock (in addition to the 500,000 shares previously agreed upon in the
amendment to the Merger Agreement dated January 24, 2007), Notwithstanding the
foregoing, if Cryptometrics fails to pay any amounts pursuant to paragraph 3
above and/or if the S-4 registration statement is declared effective and
Cryptometrics fails to close the transaction and file the certificate of merger
by the Automatic Termination Date then in effect, Cryptometrics shall not be
entitled to receive the 500,000 shares of Parent Common Stock referenced above.

All defined terms used in this agreement, which are not otherwise defined
herein shall have the meaning ascribed to them in the Merger Agreement
Amendment. Except as otherwise set forth in this agreement, the Merger
Agreement Amendment and the Merger Agreement shall remain unchanged and in full
force and effect.

If the foregoing accurately reflects your understanding of our agreement
regarding the above matter, please indicate your agreement and acceptance by
signing in the appropriate space below and returning a fully executed and dated
copy of this agreement to the undersigned

[SIGNATURES APPEAR ON NEXT PAGE]

 

	 	 	 	 	 	 	 	 	 
	Sincerely yours,
	 	AGREED AND
ACCEPTED:
	JAG
MEDIA HOLDINGS, INC.
  
	 	CRYPTOMETRICS
ACQUISITION, INC.
	 	 	 	 	 	 	 	 	 
	By: /s/ Thomas J. Mazzarisi

Name: Thomas J. Mazzarisi

Title: Chairman & CEO

Date: May 18, 2007
	By: /s/ Thomas J. Mazzarisi

Name: Thomas J. Mazzarisi

Title: President

Date: May 18, 2007

	 	 	 	 	 	 	 	 	 
	AGREED
AND ACCEPTED: 
	 	The undersigned
is signing this
	CRYPTOMETRICS,
INC.
	 	agreement
solely in its capacity as
	 
	 	“Escrow
Agent“ pursuant to the
	 
	 	provisions of
paragraph 10
	
	 	of the Merger
Agreement Amendment
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	By: /s/ Robert Barra

Name: Robert Barra

Title: Co-CEO

Date: May 18, 2007
	KARLEN & STOLZAR, LLP

 

By: /s/ Michael I.Stolzar

Name: Michael I.Stolzar

Title: Partner

Dated: May 18, 2007
	 	 	 	 	 	 	 	 	 
	
	 	The undersigned
are signing this
	 
	 	agreement only with respect to their
	 
	 	obligations set forth
	/s/ Robert Barra
	 	in paragraph 12 of
the Merger

Agreement Amendment
	             Robert
Barra

    Dated: May 18, 2007 
	 	
	 	 	 	 	 	 	 	 	 
	
	/s/ Thomas J. Mazzarisi

Thomas J. Mazzarisi

Dated: May 18, 2007
	 
	 	 
	
	 	 		 
	By: /s/ Michael Vitale

Michael Vitale

Dated: May 18, 2007	By: /s/ Stephen J. Schoepfer

Stephen J. Schoepfer

Dated: May 18, 2007

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