Document:

Exhibit 4.1

 

Agreement

This Agreement is dated as of October 2, 2006, among Satellite
Strategic Finance Associates, LLC and Satellite Strategic Finance
Partners, Ltd. (together, the “Holders)
and Citadel Security Software Inc. (the “Company”).

In consideration of the mutual agreements contained herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

If, and only if, the Company and McAfee, Inc. (the “Buyer”) enter into a transaction
(the “Transaction”) that is contemplated
by and consistent with the October 1, 2006 draft of the Asset Purchase
Agreement provided by the Company to the Holders for review (the “APA”), the Holders agree to the
terms set forth in this Agreement, including the agreement to accept $18.84
million (the “Redemption Amount”) as
payment for the redemption of their shares of Series A Convertible
Preferred Stock (the “Series A Preferred Stock”)
and Series B Convertible Preferred Stock (the “Series
B Preferred Stock” and, together with the Series A Preferred
Stock, the “Preferred Stock”), in full satisfaction of any liquidation
preference or redemption payment that would otherwise be due to the Holders or
their successors or assigns upon closing of the Transaction (the “Redemption”); provided, that
the Holders shall be entitled to receive an additional payment of up to $4.71MM
(the “Additional Payment”) if  the purchase price for the assets of the
Company (whether received by the Company at or after the closing) results in an
amount sufficient to legally pay the holders of the Company’s common stock an aggregate
amount in excess of $19.75 million in total or $0.57 / share of common stock (after
payment of taxes, creditors, transaction expenses and the Preferred Stock) (the
“Threshold Amount”).  The Redemption Amount shall be paid in full to
the Holders within three business days after  the closing of the acquisition contemplated by
the APA.  If and when the Threshold
Amount is reached, no further payments shall be made to the Company’s common
stockholders until the entire Additional Payment amount has been paid to the
Holders.  Following the Additional
Payment, the parties agree that the balance of the proceeds, if any, shall be
for the benefit of the Company’s common stockholders.  As soon as practicable, the Company agrees to
provide the Holders with a full and accurate accounting of the sources and uses
of funds in the Transaction.  Immediately
upon closing of the Transaction, the Preferred Stock held by the Holders will
be entitled to no rights other than the right to receive the Redemption
proceeds and Additional Payment (if any), as calculated in accordance with this
paragraph.  Upon receipt of such
Redemption proceeds and Additional Payment (if any), the Holders agree to
promptly return all Preferred Stock certificates to the Company along with duly
executed stock powers transferring such shares to the Company.

The Holders agree and acknowledge that Steven B.
Solomon or other investors in the Company have and may from time to time
advance funds to the Company to cover operating expenses and will be reasonably
reimbursed for such advances as contemplated by the APA or otherwise.  In addition the Holders hereby: (i) waive any
right under Section 4.7 of the Securities Purchase Agreement dated May 9, 2005
between the Company and Satellite Strategic Finance Associates, LLC, or
otherwise, to limit the Company’s ability to declare or pay cash dividends up
to an aggregate of $0.57 per common share, in combination with all previous
distributions

 

(provided
the Redemption Payment has been accomplished in accordance with the terms set
forth above before such dividends have been paid) or additional amounts
(provided the Redemption Payment and the Additional Payment (if any) have been
accomplished in accordance with the terms set forth above before such dividends
have been paid); (ii) waive any right to require that McAfee or any of
its affiliates, in connection with the Transaction, assume any obligations with
respect to the Preferred Stock (as set forth in Section 7(d) of the Certificate
of Designations, Rights and Preferences of Series A Convertible Preferred Stock
( the “Series A Certificate of Designations”)
or Section 7(d) of the Certificate of Designations, Rights and Preferences of
Series B Convertible Preferred Stock (the “Series B Certificate of
Designations” or otherwise); (iii) waive any right to require
that McAfee or any of its affiliates, in connection with the Transaction,
assume any obligations with respect to outstanding options, warrants or other
rights of the Company held by the Holders pursuant to Section 6(d) of that
certain warrant to purchase 1,200,000 shares of Company common stock dated May
9, 2005, (the “Series C Warrant”) and
pursuant to Section 6(d) of that certain warrant to purchase 2,838,710 shares
of Company common stock dated May 9, 2005, (the “Series
B Warrant” and collectively with the Series C Warrant, the “Satellite Warrants”) or otherwise;
and (iv) waive any rights to receive notice of the Transaction pursuant to
Section 7(d) of the Series A Certificate of Designations, Section 7(d) of the
Series B Certificate of Designations, Section 6(d) of the Series B Warrant and
Section 6(d) of the Series B Warrant or otherwise.

Further, the Holders agree and acknowledge that at all times during the
period commencing with the execution and delivery of this Agreement until the
Expiration Date (as defined below) that: (i) Holders will not exercise any
Preferred Stock conversion rights; (ii)  Holders shall not deposit
(or permit the deposit of) any Preferred Stock in a voting trust or grant any
proxy, or enter into any voting agreement or similar agreement or arrangement
in contravention of the obligations of Holders under this Agreement with
respect to any of the Preferred Stock; and (iii) Holders shall not cause or
permit any Transfer (as defined below) of any of the Preferred Stock (or any
securities convertible into or exercisable or exchangeable for Preferred Stock)
or the Satellite Warrants, or any interest in the foregoing, to be
effected.  “Transfer”
shall mean the direct or indirect: (i) sale, offer to sell, short sale of,
pledge, encumbrance, loan, hypothecation, entry into any type of equity swap or
hedging of, grant of an option with respect to, transfer or disposition of, any
Preferred Stock or any interest therein, or the economic consequences of
ownership of any Preferred Stock or (ii) entry into an agreement, contract or
commitment providing for any of the foregoing.

Holders represent and warrant that, as of the date hereof, they are the
sole holders of the Warrants, 15,000 shares of Series A Preferred Stock and
7,000 shares of Series B Preferred Stock.

This Agreement shall terminate as of October 10, 2006 if the Definitive
Agreement is not executed by the Company and McAfee by such date, or as of
December 31, 2006 if the Definitive Agreement has been executed by the Company
and McAfee, but the Transaction contemplated by the Letter of Intent have not
been consummated (each a “Termination Event”).  The day on which the first Termination Event
occurs shall be known as the “Expiration Date”.  Prior to the Expiration Date,
Satellite shall not enter into any agreement or understanding with

 

any Person to vote or
give instructions in any manner inconsistent with the terms of this Agreement.

[Balance of Page Intentionally Blank – Signature Page Follows]

 

 

	
  Satellite Strategic Finance Associates, LLC

  	
   

  
	
   

  	
   

  
	
  By: Satellite
  Asset Management, L.P., Its Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Simon Raykher

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Simon Raykher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Satellite
  Strategic Finance Partners, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: Satellite
  Asset Management, L.P., Its Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Simon Raykher

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Simon Raykher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  General Counsel

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Citadel
  Security Software Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven B. Solomon

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven B. Solomon

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
							

 

 

[SIGNATURE PAGE TO
SATELLITE AGREEMENT]Exhibit 10.1

FORM
OF SUPPORT AGREEMENT

THIS SUPPORT AGREEMENT (this “Agreement”) is made and entered into as of
October 2, 2006 by and between McAfee, Inc., a Delaware corporation (“McAfee”), and the undersigned (the “Stockholder”), solely in his individual
capacity as a holder or beneficial owner of securities of Citadel Security
Software Inc., a Delaware corporation (“Citadel”),
and not in his capacity as an officer or director of Citadel.

RECITALS

A.            McAfee, McAfee Security, LLC, a
Delaware limited liability company (each a “Buyer”
and together the “Buyers”), Citadel,
Citadel Security Software International, LLC, a Delaware limited liability
company, Canberra Operating, L.P., a Texas limited partnership (each a “Seller” and together the “Sellers”)
and Canberra, LLC, a Delaware limited liability company have entered into an asset
purchase agreement, dated as of October 2, 2006 (as amended from time to time
in accordance with its terms, the “Purchase
Agreement”), which provides for the sale of substantially all of the
assets of the Sellers to the Buyers (the “Acquisition”).

B.            The Stockholder is the beneficial
owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) of
such number of: (i) shares of the outstanding common stock of Citadel (the “Citadel Stock”); and (ii) shares of Citadel
Stock issuable upon the exercise of outstanding options or warrants to acquire
such shares of Citadel Stock, in each case as is set forth on the signature
page of this Agreement.

C.            As an inducement and condition to entering
into the Purchase Agreement, Buyers have required that the Stockholder agree,
and the Stockholder has agreed, to enter into this Agreement.

D.            In consideration of the execution of
the Purchase Agreement by Buyers, the Stockholder (solely in his capacity as
such) is hereby agreeing to vote, or cause to be voted, the Shares (as defined
below) and other such shares of capital stock of Citadel over which the
Stockholder has voting power so as to facilitate the consummation of the
Acquisition.

NOW,
THEREFORE, intending to be legally bound, the parties hereto hereby agree as
follows:

1.     Certain
Definitions.  Capitalized terms used
but not otherwise defined herein shall have the respective meanings ascribed to
them in the Purchase Agreement.  For
purposes of this Agreement, the following terms shall have the following
respective meanings:

(a)   “Expiration
Date” shall mean the earlier to occur of (i) such date and time as
the Purchase Agreement shall have been terminated pursuant to the terms thereof,
or (ii) the Effective Time.

 

(b)   “Shares”
shall mean: (i) all securities of Citadel (including all shares of Citadel
Stock and all options, warrants and other rights to acquire shares of Citadel Stock
or any other securities of Citadel) owned by the Stockholder as of the date of
this Agreement; and (ii) all additional securities of Citadel (including all
additional shares of Citadel Stock and all additional options, warrants and
other rights to acquire shares of Citadel Stock or any other securities of Citadel)
of which the Stockholder acquires ownership during the period from the date of
this Agreement through the Expiration Date, including, without limitation,
through the exercise of options, warrants or other rights to acquire such
securities of Citadel, or the conversion of other securities of Citadel into
such securities of Citadel.  In the event
of a stock dividend or distribution, or any change in the Shares by reason of
any stock dividend, split-up, recapitalization, combination, exchange of shares
or the like, the term “Shares” shall be deemed to refer to and include the
Shares as well as all such stock dividends and distributions and any shares
into which or for which any or all of the Shares may be changed or exchanged.

(c)   “Transfer”
shall mean the direct or indirect: (i) sale, offer to sell, short sale of,
pledge, encumbrance, loan, hypothecation, entry into any type of equity swap or
hedging of, grant of an option with respect to, transfer or disposition of, any
Shares or any interest therein, or the economic consequences of ownership of any
Shares or (ii) entry into an agreement, contract or commitment providing for any
of the foregoing (other than any such actions pursuant to which the Stockholder
maintains all voting rights with respect to such Shares).

2.     Transfer
of Shares.

(a)   Transferee of Shares to be Bound by this Agreement.  The Stockholder hereby agrees that, at all
times during the period commencing with the execution and delivery of this
Agreement until the Expiration Date, the Stockholder shall not cause or permit
any Transfer of any of the Shares (or any securities convertible into or
exercisable or exchangeable for Shares), or any interest in the foregoing, unless
the transferee(s) expressly agrees in writing to be bound by the terms of this
Agreement.

(b)   Transfer of Voting Rights. 
The Stockholder hereby agrees that, at all times during the period
commencing with the execution and delivery of this Agreement through the
Expiration Date, the Stockholder shall not deposit (or permit the deposit of)
any Shares in a voting trust or grant any proxy, or enter into any voting
agreement or similar agreement or arrangement in contravention of the
obligations of the Stockholder under this Agreement with respect to any of the
Shares.

(c)   Limitation on Registration of Transfer.  The Stockholder agrees with, and covenants
to, Buyers that the Stockholder shall not request that Citadel register the
Transfer of any certificate or uncertificated interest representing any of the
Shares, unless such Transfer is made in compliance with this Agreement.

3.     Agreement to Vote Shares.

(a)   Agreement to Vote. Until the Expiration Date, at every
meeting of the Stockholders of Citadel called, and at every adjournment or
postponement thereof, and on every 

 2
 

 

action or approval by written consent of the stockholders
of Citadel, the Stockholder (solely in his capacity as such) shall cause the
Shares to be voted: (i) in favor of the Acquisition and the Stockholder
Approval Matters; (ii) in favor of the Purchase Agreement (as the same may be
amended from time to time) and each action contemplated therein; (iii) in
favor of any matter that could reasonably be expected to facilitate the
Acquisition and the Stockholder Approval Matters; and (iv) against any
matter that is inconsistent with the prompt consummation of the Acquisition,
the Stockholder Approval Matters and the other transactions contemplated by the
Purchase Agreement (as the same may be amended from time to time).

(b)   No Other Agreement. 
Prior to the Expiration Date, the Stockholder shall not enter into any
agreement or understanding with any Person to vote or give instructions in any
manner inconsistent with the terms of this Section 3.

(c)   Other Agreements.  To
the extent the Stockholder is party to any other agreement or arrangement that
requires Stockholder’s consent, or requires a waiver of any rights, Stockholder
hereby irrevocably gives such consent or waiver.

4.     Irrevocable Proxy.  As security for the agreements of the Stockholder
provided for herein, the Stockholder hereby grants and delivers to McAfee,
concurrently with the execution and delivery of this Agreement, a proxy in the
form attached hereto as Exhibit A (the “Proxy”),
which shall be irrevocable to the fullest extent permitted by applicable law,
with respect to the Shares.

5.     Representations and
Warranties of the Stockholder.  The
Stockholder hereby represents and warrants to Buyers, as of the date hereof and
at all times until the Expiration Date (unless indicated otherwise), as
follows:

(a)   Shares.  The
Stockholder is the beneficial owner of, and has good and valid title to, the
Shares, free and clear of any liens, claims, options, rights of first refusal,
co-sale rights, charges or other encumbrances. 
As of the date hereof, Stockholder does not beneficially own or have any
written or unwritten agreement or arrangement to acquire any securities of Citadel
other than the shares of Citadel Stock and options and warrants to purchase
shares of Citadel Stock indicated on the signature page of this Agreement.  The Stockholder has sole voting power, sole
power of disposition, sole power to issue instructions with respect to the
matters set forth in Sections 2 and 3 hereof, sole power to agree to all of the
matters set forth in this Agreement, in each case with respect to all of the
Shares, with no limitations, qualifications or restrictions on such rights,
subject to applicable federal securities laws and the terms of this Agreement.

(b)   Authorization; Validity of Agreement.  The Stockholder has full power and capacity to
execute and deliver this Agreement, to perform his obligations hereunder and to
consummate the transactions contemplated hereby.  This Agreement has been duly executed and
delivered by the Stockholder, and, assuming this Agreement constitutes a valid
and binding obligation of Buyer, constitutes a valid and binding obligation of
the Stockholder, enforceable against him in accordance with its terms, except
as enforceability may be limited by bankruptcy and other similar laws and
general principles of equity.

 3
 

 

(c)   Consents and Approvals; No Violations.  Neither the execution, delivery or
performance of this Agreement by Stockholder nor the consummation by him of the
transactions contemplated hereby nor compliance by him with any of the
provisions hereof will (i) (if such Stockholder is an entity) conflict with or
result in any breach of any provision of its certificate of formation,
operating agreement, by-laws or other charter documents, (ii) require any
filing with, or permit, authorization, consent or approval of, any court,
administrative agency or commission or other governmental authority or
instrumentality (except where the failure to obtain such permits,
authorizations, consents or approvals or to make such filings would not
materially impair the ability of the Stockholder to consummate the transactions
contemplated hereby), (iii) result in a violation or breach of, or constitute
(with or without due notice or lapse of time or both) a default (or give rise to
any right of termination, amendment, cancellation of acceleration) under, any
of the terms, conditions or provisions of any note, bond, mortgage, indenture,
guarantee, other evidence of indebtedness, lease, license, contract, agreement
or other instrument or obligation to which Stockholder is a party or by which
he or any his properties or assets may be bound or (iv) as of the date hereof,
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to him or any of his properties or assets.

(d)   No Finder’s Fee.  Except
as disclosed in the Purchase Agreement, no broker, investment banker, financial
advisor or other person is entitled to any broker’s, finder’s, financial
advisor’s or other similar fee or commission in connection with the
transactions contemplated hereby based upon arrangements made by or on behalf
of the Stockholder.

6.     Purchase Agreement and Related Filings.  The Stockholder hereby covenants and agrees
to use reasonable efforts to cooperate with Buyers and Sellers to consummate
the Acquisition upon the terms, and subject to the conditions, set forth in the
Purchase Agreement (as the same may be amended from time to time).

7.     No Solicitation.  From the date hereof until the termination
hereof, the Stockholder will not, directly or indirectly, (i) take any action
to solicit, initiate or encourage any acquisition by another entity (the “Acquisition Proposal”) or (ii) engage in negotiations or
discussions with, or disclose any nonpublic information relating to Citadel or
any subsidiary of Citadel to, or otherwise assist, facilitate or encourage, any
person (other than the Buyers) that may be considering making, or has made, a
Acquisition Proposal.  The Stockholder
will promptly notify McAfee after receipt of any Acquisition Proposal or any
indication that any such third party is considering making an Acquisition
Proposal or any request for nonpublic information relating to Citadel or any
subsidiary of Citadel or for access to the properties, books or records of Citadel
or any such subsidiary by any such third party that may be considering making,
or has made, a Acquisition Proposal and will keep McAfee fully informed of the
status and details of any such Acquisition Proposal, indication or
request.  The foregoing provisions of this
Section 7 will not be construed to limit actions taken, or to require actions
to be taken, by the Stockholder that are required or restricted by fiduciary
duties or employment duties of the Stockholder, or permitted by the Purchase Agreement
(as the same may be amended from time to time), and that, in each case, are
undertaken solely in the Stockholder’s capacity as a director or officer of Citadel,
if applicable.

8.     No Solicitation of
Proxies.  The Stockholder agrees
(solely in his capacity as such) that he will not directly or indirectly,
engage in any solicitation (as defined in Regulation 14A of the 

 4
 

 

Rules and
Regulations of the Exchange Act) of other stockholders of Citadel against the
approval of the Acquisition or any of the other actions contemplated by the Purchase
Agreement (as the same may be amended from time to time).

9.     Further Assurances.  From time to time, at McAfee’s request and
without further consideration, the Stockholder shall execute and deliver such
additional documents and take all such further action as may be necessary or
appropriate to consummate the transactions contemplated by this Agreement.

10.   Legending of Shares.  If so requested by McAfee, the Stockholder
hereby agrees that the Shares shall bear a legend stating that they are subject
to this Agreement and to an irrevocable proxy. 
Subject to the terms of Section 2 hereof, the Stockholder hereby agrees
that the Stockholder shall not Transfer the Shares without first having the
aforementioned legend affixed to the certificates representing the Shares.

11.   Termination.  This Agreement shall terminate and shall have
no further force or effect as of the Expiration Date.

12.   Miscellaneous.

(a)   Waiver.  No waiver by
any party hereto of any condition or any breach of any term or provision set
forth in this Agreement shall be effective unless in writing and signed by each
party hereto.  The waiver of a condition
or any breach of any term or provision of this Agreement shall not operate as
or be construed to be a waiver of any other previous or subsequent breach of
any term or provision of this Agreement.

(b)   Severability.  In the
event that any term, provision, covenant or restriction set forth in this
Agreement, or the application of any such term, provision, covenant or
restriction  to any person, entity or set
of circumstances, shall be determined by a court of competent jurisdiction to
be invalid, unlawful, void or unenforceable to any extent, the remainder of the
terms, provisions, covenants and restrictions set forth in this Agreement, and
the application of such terms, provisions, covenants and restrictions to
persons, entities or circumstances other than those as to which it is
determined to be invalid, unlawful, void or unenforceable, shall remain in full
force and effect, shall not be impaired, invalidated or otherwise affected and
shall continue to be valid and enforceable to the fullest extent permitted by
applicable law.

(c)   Binding Effect; Assignment. 
This Agreement and all of the terms and provisions hereof shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, but, except as otherwise specifically
provided herein, neither this Agreement nor any of the rights, interests or
obligations of the Stockholder may be assigned to any other Person without the
prior written consent of McAfee.

(d)   Amendments.  This
Agreement may not be modified, amended, altered or supplemented, except upon
the execution and delivery of a written agreement executed by each of the
parties hereto.

 5
 

 

(e)   Specific Performance; Injunctive Relief.  Each of the parties hereto hereby
acknowledges that (i) the representations, warranties, covenants and
restrictions set forth in this Agreement are necessary, fundamental and
required for the protection of Buyers and to preserve for Buyers the benefits
of the Acquisition; (ii) such covenants relate to matters which are of a
special, unique, and extraordinary character that gives each such
representation, warranty, covenant and restriction a special, unique, and
extraordinary value; and (iii) a breach of any such representation, warranty,
covenant or restriction, or any other term or provision of this Agreement, will
result in irreparable harm and damages to Buyers which cannot be adequately
compensated by a monetary award. 
Accordingly, the Stockholder hereby expressly agrees that in addition to
all other remedies available at law or in equity, Buyers shall be entitled to
the immediate remedy of specific performance, a temporary and/or permanent restraining
order, preliminary injunction, or such other form of injunctive or equitable
relief as may be used by any court of competent jurisdiction to restrain or
enjoin the Stockholder from breaching any representations, warranties,
covenants or restrictions set forth in this Agreement, or to specifically
enforce the terms and provisions hereof.

(f)    Governing Law.  This
Agreement shall be governed by and construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without giving
effect to any choice or conflict of law provision, rule or principle (whether
of the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

(g)   Notices.  All notices
and other communications hereunder shall be in writing and shall be deemed duly
given (i) on the date of delivery if delivered personally, (ii) on the date of
confirmation of receipt (or, the first business day following such receipt if
the date is not a business day) of transmission by telecopy or telefacsimile or
(iii) on the date of confirmation of receipt (or, the first business day
following such receipt if the date is not a business day) if delivered by a
nationally recognized courier service. 
All notices hereunder shall be delivered as set forth below, or pursuant
to such other instructions as may be designated in writing by the party to
receive such notice:

(i)    If to a Buyer:

McAfee, Inc. Corporation

McAfee, Inc.

3965 Freedom Circle

Santa Clara, CA 95054

Attention: General Counsel

Fax:  (408) 970-9727

with a copy to:

Hughes & Luce, LLP

1717 Main St.

Suite 2800

Dallas, TX 75201

Attention:  Benjamin D. Nelson

 6
 

 

Fax:  (214)
939-5849

(ii)          If
to the Stockholder: To the address for notice set forth on the signature page
hereof.

with a copy to:

Citadel Security Software Inc.

5420 Lyndon B Johnson Fwy 

2 Lincoln Centre 

Suite 1600 

Dallas, TX 75240

Fax:  (214) 520-9293

and

Wood
& Sartain, LLP

12655 North Central Expressway

Suite 421

Dallas, Texas 75243

Attention:  David Wood

Fax:  (972) 701-0302

(h)   Enforcement; Consent to Jurisdiction; Waiver of Jury Trial.

(i)    Each of the parties hereto:

(A)      agrees that he will not attempt to deny or defeat such personal
jurisdiction or venue by motion or other request for leave from any such court;

(B)      agrees that he will not bring any action relating to this
Agreement or any of the transactions contemplated by this Agreement in any
court other than such courts;

(C)      agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to a party at his
address set forth in Section 12(g) or at such other address of which a party
shall have been notified pursuant thereto; and

(D)      agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the
right to sue in any other jurisdiction.

(ii)   EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING IN RELATION TO THIS AGREEMENT AND FOR
ANY COUNTERCLAIM THEREIN.

 7
 

 

(iii)  All rights, powers and remedies provided under this Agreement or
otherwise available in respect hereof at law or in equity shall be cumulative
and not alternative, and the exercise of any thereof by any party shall not
preclude the simultaneous or later exercise of any other such right, power or
remedy by such party.

(i)    Entire Agreement. 
This Agreement, the Proxy, the Purchase Agreement and any other
agreements referred to in the Purchase Agreement contain the entire
understanding of the parties in respect of the subject matter hereof, and
supersede all prior negotiations and understandings between the parties with respect
to such subject matter.

(j)    Headings.  The
section headings set forth in this Agreement are for convenience of reference
only and shall not affect the construction or interpretation of this Agreement
in any manner.

(k)   Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same
instrument.

(l)            No
Ownership Interest.  Nothing contained in this Agreement
shall be deemed to vest in McAfee any direct or indirect ownership or incidence
of ownership of or with respect to any Shares. All rights, ownership and
economic benefits of and relating to the Shares shall remain vested in and
belong to the Stockholder, and McAfee shall have no authority to manage,
direct, superintend, restrict, regulate, govern or administer any of the
policies or operations of Sellers or exercise any power or authority to direct
the Stockholder in the voting of any of the Shares, except as provided herein. 

[SIGNATURE PAGE FOLLOWS]

 8

IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly executed on the day
and year first above written.

	
  McAfee, Inc.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Eric F. Brown

  
	
  Chief Financial
  Officer

  
	
   

  
	
   

  
	
  STOCKHOLDER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  Address:

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Facsimile
  Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Shares
  Beneficially Owned:

  
	
   

  
	
  Number of Shares
  held 

  	
   

  	
   

  
	
   

  
	
  Number of Shares
  issuable

  
	
  upon exercise of
  outstanding options or warrants held 

  	
   

  	
   

  
									

 

[SIGNATURE PAGE TO SUPPORT
AGREEMENT]

 

 

EXHIBIT
A

IRREVOCABLE PROXY

[Follows]

 2
 

 

IRREVOCABLE PROXY

The undersigned
stockholder of Citadel Security Software Inc., a Delaware corporation (“Citadel”), hereby irrevocably (to the
fullest extent permitted by law) appoints Kevin Weiss and Eric F. Brown,
officers of McAfee, Inc., a Delaware corporation (“McAfee”), and each of them, as the sole and exclusive attorneys
and proxies of the undersigned, with full power of substitution and
resubstitution, to vote and exercise all voting and related rights (to the full
extent that the undersigned is entitled to do so) with respect to all of the
shares of capital stock of Citadel that now are or hereafter may be owned of
record by the undersigned (collectively, the “Shares”) in accordance with the terms of this Proxy.  The Shares owned of record by the undersigned
stockholder of Citadel as of the date of this Proxy are listed on the final
page of this Proxy.  Upon the undersigned’s
execution of this Irrevocable Proxy, any and all prior proxies given by the
undersigned with respect to any Shares are hereby revoked and the undersigned
agrees not to grant any subsequent proxies with respect to the Shares until
after the Expiration Date (as defined below). 
This Proxy may only be used in connection with the Support Agreement and
shall be terminated upon any termination of the Support Agreement.

This Irrevocable Proxy is
irrevocable (to the fullest extent permitted by applicable law), is coupled
with an interest and is granted pursuant to that certain Support Agreement of
even date herewith by and between McAfee and the undersigned stockholder, and
is granted in consideration of McAfee entering into that certain Asset and
Purchase Agreement (the “Purchase
Agreement”) by and among McAfee, McAfee Security, LLC, a Delaware
limited liability company (each a “Buyer” and together the “Buyers”), Citadel
Security Software Inc., Citadel Security Software International, LLC, a Delaware
limited liability company and Canberra Operating, L.P., a Texas limited
partnership, (each a “Seller” and together the “Sellers”) and Canberra, LLC, a
Delaware limited liability company.  The Purchase
Agreement provides for the purchase of substantially all of the assets of the
Sellers by the Buyers (the “Acquisition”).  As used herein, the term “Expiration Date” shall mean the
earlier to occur of (i) such date and time as the Purchase Agreement shall have
been validly terminated in accordance with its terms or (ii) such date and time
as the Acquisition shall become effective in accordance with the terms and
provisions of the Purchase Agreement.

The attorneys and proxies
named above, and each of them, are hereby authorized and empowered by the
undersigned, at any time prior to the Expiration Date, to act as the
undersigned’s attorney and proxy to vote the Shares, and to exercise all voting,
consent and similar rights of the undersigned with respect to the Shares
(including, without limitation, the power to execute and deliver written
consents) at every annual, special or adjourned meeting of stockholders of Citadel
and in every written consent in lieu of such meeting:  (i) in favor of the Acquisition; (ii) in
favor of the Purchase Agreement (as the same may be amended from time to time)
and each action contemplated therein; (iii) in favor of any matter that
could reasonably be expected to facilitate the Acquisition; and
(iv) against any matter that is inconsistent with the prompt consummation
of the Acquisition and the other transactions contemplated by the Purchase
Agreement (as the same may be amended from time to time).

The attorneys and proxies
named above may not exercise this Irrevocable Proxy on any other matter except
as provided above.  The undersigned
stockholder may vote the Shares on all other matters.

 3
 

 

Any obligation of the
undersigned hereunder shall be binding upon the successors and assigns of the
undersigned.

[SIGNATURE PAGE FOLLOWS]

 4

This Irrevocable
Proxy is irrevocable (to the fullest extent permitted by law).  This Irrevocable Proxy shall terminate, and
be of no further force and effect, automatically upon the Expiration Date.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name and Title
  of

  	
   

  	
   

  
	
  Authorized
  Signatory:

  	
   

  	
   

  	
   

  	
   

  
										

 

[SIGNATURE
PAGE TO IRREVOCABLE PROXY]

 

 

Schedule of Directors and Executive Officers Executing Support
Agreements

 

 

Steven B. Solomon

Richard Connelly

John Leide

Chris Economou

Mark Rogers

Joe M. Allbaugh

Carl Banzhof

Robert Humphrey

David Helffrich

Randy Schirman

Robert B. Dix, Jr.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]