Document:

exv10w5w5

 

EXHIBIT 10.5.5

FOURTH AMENDMENT TO LEASE

     This FOURTH AMENDMENT TO LEASE (the “Amendment”) is made and entered into as of the
24th day of May 2005, by and between MITCHELL H. HERSCH, BRIAN L. HERSCH, SHARON MAE
HERSCH, KERRY ELLEN HERSCH BERGER and MITCHELL H. HERSCH AS MANAGER OF EVERY/JOE LLC (collectively
“Lessor”) and PSYCHEMEDICS CORPORATION, a Delaware corporation (“Lessee”), with respect to that
Standard Industrial Lease dated October 6, 1992, and amended January 1, 1993 and December 16, 1994
(as amended, the “Lease”), pursuant to which Lessee leases from Lessor those certain premises
located at 5830 Uplander Way, Los Angeles County, California and 5832 Uplander Way, Los Angeles
County, California (collectively the “Premises”). Unless otherwise defined herein, all capitalized
terms used in this Amendment shall have the same meanings as are ascribed to such terms in the
Lease. Lessor and Lessee hereby acknowledge the following:

RECITALS

     A. Lessor and Lessee desire to renew the Lease for the Premises and to otherwise modify the
Lease as provided herein.

     B. Except as amended and modified, all terms of the Lease, as amended, shall remain in full
force and effect.

     NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth,
and other good and valuable consideration, receipt of which is hereby acknowledged, Lessor and
Lessee agree as follows:

AGREEMENT

     1. Term of Lease. Lessor and Lessee hereby agree that this Fourth Amendment shall be
effective on January 1, 2006 (the “Effective Date”) and shall, unless otherwise extended as
provided herein, terminate on December 31, 2012.

     2. Option to Extend Term. Lessee shall have an option to extend the Lease for a
period of three years, which option period shall commence on January 1, 2013 and shall terminate on
December 31, 2015. Lessee may exercise this option strictly in accordance with the procedures set
forth in Paragraph 9 of the Addendum to Standard Industrial Lease dated September 16, 1992 (the
“Addendum”) except that the rent for this option period shall be determined pursuant to the C.P.I.
adjustment outlined in Paragraph 4 below however calculated for the period of January 1, 2009
through December 31, 2012. Such option is not assignable notwithstanding anything to the contrary
in the Lease.

     3. Basic Monthly Rent. From January 1, 2006 through December 31, 2008, the Base
Monthly Rental for the Premises will be due and payable in advance on the

 

 

first day of each month
at the rate of Twenty-Two Thousand Eighty-Two Dollars ($22,082) per month. Rent will be allocated
at the rate of $1.26/sq.ft. for the lab and office space and $0.4801/sq.ft. for the mezzanine
storage area.

     4. Rent Adjustment. The Base Monthly Rental shall be adjusted effective January 1,
2009, by a percentage equal to the increase in the Consumer Price Index (U.S. Department of Labor
for all Urban Consumers, Los Angeles-Anaheim-Riverside California {1967=100} hereinafter “C.P.I.
Index”) for the period of January 1, 2006 through December 31, 2008; provided, however,
notwithstanding the C.P.I. Index, the Base Monthly Rental shall increase no less than three percent
(3%) per year compounded, nor more than five percent (5%) per year compounded.

     If the Bureau of Labor Statistics discontinues publication of the C.P.I. Index, publishes the
C.P.I. Index less frequently, or alters the C.P.I. Index in a material manner, then Lessor, in its
sole discretion, may adopt a substitute index or procedure with reasonably reflects and monitors
consumer prices.

     5. Security Deposit. The security deposit for the Premises shall be increased to the
sum of $22,082. When the rent is adjusted in accordance with Paragraph 4 above, the security
deposit will be adjusted in a like amount.

     6. Incorporation. Except as otherwise expressly set forth herein, and to the extent
necessary to give effect to the provisions hereof, all terms and conditions of the Lease shall
remain unmodified and in full force and effect.

     7. Counterparts. This Amendment may be executed in one or more counterpart copies,
and each of which, so executed, irrespective of the date of execution and delivery, shall be deemed
to be an original, and all such counterparts together shall constitute one and the same instrument.
The signature pages of one or more of the counterpart copies may be removed from such counterpart
copies and be attached to the same copy of this Amendment, which, with all signatures attached,
shall be deemed to be an original Agreement.

     IN WITHNESS WHEREOF, the parties hereto have entered into this Fourth Amendment as of the date
first set forth above.

	 	 	 	 	 	 	 
	LESSOR	 	 	 	LESSEE
	 
	 	 	 	 	 	 
	 	 	 	 	PSYCHEMEDICS CORPORATION, a
	 	 	 	 	 	 	 
	MITCHELL H. HERSCH	 	 	 	     Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	BRIAN L. HERSCH

	 	 	 	 	 	Peter C. Monson

      Vice President and Chief

      Financial Officer
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	SHARON MAE HERSCH
	 	 	 	 	 	 

 

 

	 	 	 
	 

	 	 
	 	 	 
	KERRY ELLEN HERSCH BERGER
	 	 
	 
	 
	 
	 	 
	 	 	 
	MITCHELL H. HERSCH, AS

MANAGER OF EVERY/JOE LLC<PAGE>
                                                                   Exhibit 10.30

                 AMENDMENT NO. 1 TO EXECUTIVE SERVICES AGREEMENT

     This Amendment No. 1 to Executive Services Agreement is made as of May 3,
2004 by and between Simon Worldwide, Inc. (the "Company") and Joseph Bartlett
(the "Executive").

                                  INTRODUCTION

     The Company and the Executive have previously entered into an Executive
Services Agreement dated May 30, 2003 (the "Agreement"). The Company and the
Executive have also previously entered into a letter agreement dated February 7,
2003 whereby the Company agreed to compensate the Executive for, among other
things, the additional obligations, responsibilities and potential liabilities
of serving as the Company's co-chief executive officer, including those under
the Sarbanes-Oxley Act of 2002. The Executive has been instrumental in helping
the Company satisfy its liabilities and attain solvency over the preceding years
and is being asked to perform a significant role in determining the future
course of the business. In order to (i) ensure that the Company might retain his
knowledge, expertise and services in such endeavor, (ii) induce the Executive to
remain as co-CEO since the aforesaid letter agreement has expired and will not
be renewed and (iii) retain the continuing commitment of the Executive to
provide the Company with the substantial time and attention necessary to meet
the needs of the Company, the Company and the Executive agree that the Agreement
shall be amended as follows:

     I.   Section 2 of the Agreement shall be amended in its entirety to read as
follows:

"2.  COMPENSATION. For Services rendered during the term of this Agreement, the
Executive shall be entitled to compensation in the amount and on the payment
terms set forth on Schedule A. The Executive shall also be entitled to
reimbursement of reasonable and necessary out-of-pocket expenses incurred by the
Executive in the ordinary course of business on behalf of the Company in
accordance with Company policy, subject to the presentation of appropriate
documentation. In addition, during the term of this Agreement the Executive and
any dependants shall be entitled to participate at no cost to the Executive in a
health insurance plan maintained by the Company at substantially the same
benefit level as of the date hereof, and along with any dependents shall be
eligible to participate in C.O.B.R.A. coverage at the expense of the Company
following termination of employment hereunder for as long as then permissible
under C.O.B.R.A and at the same benefit level as of the date hereof."

     II.  Section 3 of the Agreement shall be amended in its entirety to read as
follows:

"3.  TERM. The Executive's engagement by the Company hereunder shall commence on
the date hereof and continue until terminated by either party in accordance with
this Section 3. Such engagement may be terminated by either party without cause
as follows: The Company may terminate this Agreement at any time by giving
notice of termination to the Executive and making a lump sum payment to the
Executive equivalent to one (1) year compensation at the rate set forth on
Schedule A, and no further Services will be required. The Executive may
terminate this Agreement by giving one (1) year prior written notice to the
Company. Following termination of this Agreement, the Company shall pay to the
Executive all compensation and benefits that had accrued, and shall reimburse
all expenses incurred by the Executive, prior to the date of termination in
accordance with Section 2 hereof, and the Company will provide at its sole
expense health care insurance to the Executive under C.O.B.R.A as provided in
Section 2 above. The provisions of Section 4 through 13 hereof and the
C.O.B.R.A. obligations set forth in Section 2 shall survive the termination of
the Agreement and shall continue thereafter in full force and effect."

<PAGE>

     III. Section 4 of the Agreement shall be amended in its entirety to read as
follows:

"4.  TERMINATION BY EXECUTIVE UNDER CERTAIN CIRCUMSTANCES. Notwithstanding any
other provision hereof, in the event that (i) the Executive is removed, or
voluntarily resigns upon the request of the Board or a significant shareholder,
from the Company's Board of Directors or is not nominated, appointed or elected
to a new term on the Board of Directors following the expiration of the existing
term, (ii) the composition of the Company's Board of Directors changes from the
date hereof by the addition of a total of two or more Directors, or by two or
more existing Directors ceasing to serve as Directors for any reason, (iii) the
Company fails to maintain D&O insurance as provided in Section 6 below or (iv)
there is a change of control of the Company, defined as (a) the acquisition by
any person or group of beneficial ownership, direct or indirect, of securities
of the Company representing 50% or more of the combined voting power of the
Company's then outstanding equity securities or (b) the merger or consolidation
of the Company with or into, or the sale or assignment of all or substantially
all the assets of the Company to, another person or entity, provided that
following such transaction the holders of voting stock of the Company
immediately prior to such transaction do not own more than 50% of the voting
stock of the company surviving such transaction or to which such assets are sold
or assigned, then, in any of such events, in addition to any other rights of the
Executive under this Agreement, the Executive may at any time within six (6)
months following such event terminate this Agreement and the Company shall then
pay to the Executive a lump sum payment equivalent to one (1) year compensation
at the rate set forth on Schedule A, and no further Services will be required.
The Executive shall also be entitled to receive C.O.B.R.A. health insurance at
the Company's expense and any other payments as provided in Section 2 above."

     All other terms and provisions of the Agreement shall remain in full force
and effect. This Amendment No. 1 to Executive Services Agreement has been
executed and delivered as of the date first above written.

                                             Simon Worldwide, Inc.

                                             By: /s/ George Golleher
                                                 ---------------------------
                                                 George Golleher
                                                 Director

                                             By: /s/ Terrence J. Wallock
                                                 ---------------------------
                                                 Terrence J. Wallock
                                                 Assistant Secretary

                                                 The Executive

                                                 /s/ Joseph Bartlett
                                                 ---------------------------
                                                 Joseph Bartlett

<PAGE>

                 AMENDMENT NO. 1 TO EXECUTIVE SERVICES AGREEMENT

     This Amendment No. 1 to Executive Services Agreement is made as of May 3,
2004 by and between Simon Worldwide, Inc. (the "Company") and Allan Brown (the
"Executive").

                                  INTRODUCTION

     The Company and the Executive have previously entered into an Executive
Services Agreement dated May 30, 2003 (the "Agreement"). The Company and the
Executive have also previously entered into a letter agreement dated February 7,
2003 whereby the Company agreed to compensate the Executive for, among other
things, the additional obligations, responsibilities and potential liabilities
of serving as the Company's co-chief executive officer, including those under
the Sarbanes-Oxley Act of 2002. The Executive has been instrumental in helping
the Company satisfy its liabilities and attain solvency over the preceding years
and is being asked to perform a significant role in determining the future
course of the business. In order to (i) ensure that the Company might retain his
knowledge, expertise and services in such endeavor, (ii) induce the Executive to
remain as co-CEO since the aforesaid letter agreement has expired and will not
be renewed and (iii) retain the continuing commitment of the Executive to
provide the Company with the substantial time and attention necessary to meet
the needs of the Company, the Company and the Executive agree that the Agreement
shall be amended as follows:

     I.   Section 2 of the Agreement shall be amended in its entirety to read as
follows:

"2.  COMPENSATION. For Services rendered during the term of this Agreement, the
Executive shall be entitled to compensation in the amount and on the payment
terms set forth on Schedule A. The Executive shall also be entitled to
reimbursement of reasonable and necessary out-of-pocket expenses incurred by the
Executive in the ordinary course of business on behalf of the Company in
accordance with Company policy, subject to the presentation of appropriate
documentation. In addition, during the term of this Agreement the Executive and
any dependants shall be entitled to participate at no cost to the Executive in a
health insurance plan maintained by the Company at substantially the same
benefit level as of the date hereof, and along with any dependents shall be
eligible to participate in C.O.B.R.A. coverage at the expense of the Company
following termination of employment hereunder for as long as then permissible
under C.O.B.R.A and at the same benefit level as of the date hereof."

     IV.  Section 3 of the Agreement shall be amended in its entirety to read as
follows:

"3.  TERM. The Executive's engagement by the Company hereunder shall commence on
the date hereof and continue until terminated by either party in accordance with
this Section 3. Such engagement may be terminated by either party without cause
as follows: The Company may terminate this Agreement at any time by giving
notice of termination to the Executive and making a lump sum payment to the
Executive equivalent to one (1) year compensation at the rate set forth on
Schedule A, and no further Services will be required. The Executive may
terminate this Agreement by giving one (1) year prior written notice to the
Company. Following termination of this Agreement, the Company shall pay to the
Executive all compensation and benefits that had accrued, and shall reimburse
all expenses incurred by the Executive, prior to the date of termination in
accordance with Section 2 hereof, and the Company will provide at its sole
expense health care insurance to the Executive under C.O.B.R.A as provided in
Section 2 above. The provisions of Section 4 through 13 hereof and the
C.O.B.R.A. obligations set forth in Section 2 shall survive the termination of
the Agreement and shall continue thereafter in full force and effect."
<PAGE>

     V.   Section 4 of the Agreement shall be amended in its entirety to read as
follows:

"4. TERMINATION BY EXECUTIVE UNDER CERTAIN CIRCUMSTANCES. Notwithstanding any
other provision hereof, in the event that (i) the Executive is removed, or
voluntarily resigns upon the request of the Board or a significant shareholder,
from the Company's Board of Directors or is not nominated, appointed or elected
to a new term on the Board of Directors following the expiration of the existing
term, (ii) the composition of the Company's Board of Directors changes from the
date hereof by the addition of a total of two or more Directors, or by two or
more existing Directors ceasing to serve as Directors for any reason, (iii) the
Company fails to maintain D&O insurance as provided in Section 6 below or (iv)
there is a change of control of the Company, defined as (a) the acquisition by
any person or group of beneficial ownership, direct or indirect, of securities
of the Company representing 50% or more of the combined voting power of the
Company's then outstanding equity securities or (b) the merger or consolidation
of the Company with or into, or the sale or assignment of all or substantially
all the assets of the Company to, another person or entity, provided that
following such transaction the holders of voting stock of the Company
immediately prior to such transaction do not own more than 50% of the voting
stock of the company surviving such transaction or to which such assets are sold
or assigned, then, in any of such events, in addition to any other rights of the
Executive under this Agreement, the Executive may at any time within six (6)
months following such event terminate this Agreement and the Company shall then
pay to the Executive a lump sum payment equivalent to one (1) year compensation
at the rate set forth on Schedule A, and no further Services will be required.
The Executive shall also be entitled to receive C.O.B.R.A. health insurance at
the Company's expense and any other payments as provided in Section 2 above."

     All other terms and provisions of the Agreement shall remain in full force
and effect. This Amendment No. 1 to Executive Services Agreement has been
executed and delivered as of the date first above written.

                                        Simon Worldwide, Inc.

                                        By: /s/ J. Anthony Kouba
                                            -------------------------------
                                            J. Anthony Kouba
                                            Chairman Compensation Committee

                                        By: /s/ Terrence J. Wallock
                                            -------------------------------
                                            Terrence J. Wallock
                                            Assistant Secretary

                                            The Executive

                                            /s/ Allan Brown
                                            -------------------------------
                                            Allan Brown

<PAGE>

                 AMENDMENT NO. 1 TO EXECUTIVE SERVICES AGREEMENT

     This Amendment No. 1 to Executive Services Agreement is made as of May 3,
2004 by and between Simon Worldwide, Inc. (the "Company") and George Golleher
(the "Executive").

                                  INTRODUCTION

     The Company and the Executive have previously entered into an Executive
Services Agreement dated May 30, 2003 (the "Agreement"). The Company and the
Executive have also previously entered into a letter agreement dated February 7,
2003 whereby the Company agreed to compensate the Executive for, among other
things, the additional obligations, responsibilities and potential liabilities
of serving as the Company's co-chief executive officer, including those under
the Sarbanes-Oxley Act of 2002. The Executive has been instrumental in helping
the Company satisfy its liabilities and attain solvency over the preceding years
and is being asked to perform a significant role in determining the future
course of the business. In order to (i) ensure that the Company might retain his
knowledge, expertise and services in such endeavor, (ii) induce the Executive to
remain as co-CEO since the aforesaid letter agreement has expired and will not
be renewed and (iii) retain the continuing commitment of the Executive to
provide the Company with the substantial time and attention necessary to meet
the needs of the Company, the Company and the Executive agree that the Agreement
shall be amended as follows:

     I.   Section 2 of the Agreement shall be amended in its entirety to read as
follows:

"2.  COMPENSATION. For Services rendered during the term of this Agreement, the
Executive shall be entitled to compensation in the amount and on the payment
terms set forth on Schedule A. The Executive shall also be entitled to
reimbursement of reasonable and necessary out-of-pocket expenses incurred by the
Executive in the ordinary course of business on behalf of the Company in
accordance with Company policy, subject to the presentation of appropriate
documentation. In addition, during the term of this Agreement the Executive and
any dependants shall be entitled to participate at no cost to the Executive in a
health insurance plan maintained by the Company at substantially the same
benefit level as of the date hereof, and along with any dependents shall be
eligible to participate in C.O.B.R.A. coverage at the expense of the Company
following termination of employment hereunder for as long as then permissible
under C.O.B.R.A and at the same benefit level as of the date hereof."

     VI.  Section 3 of the Agreement shall be amended in its entirety to read as
follows:

"3.  TERM. The Executive's engagement by the Company hereunder shall commence on
the date hereof and continue until terminated by either party in accordance with
this Section 3. Such engagement may be terminated by either party without cause
as follows: The Company may terminate this Agreement at any time by giving
notice of termination to the Executive and making a lump sum payment to the
Executive equivalent to one (1) year compensation at the rate set forth on
Schedule A, and no further Services will be required. The Executive may
terminate this Agreement by giving one (1) year prior written notice to the
Company. Following termination of this Agreement, the Company shall pay to the
Executive all compensation and benefits that had accrued, and shall reimburse
all expenses incurred by the Executive, prior to the date of termination in
accordance with Section 2 hereof, and the Company will provide at its sole
expense health care insurance to the Executive under C.O.B.R.A as provided in
Section 2 above. The provisions of Section 4 through 13 hereof and the
C.O.B.R.A. obligations set forth in Section 2 shall survive the termination of
the Agreement and shall continue thereafter in full force and effect."
<PAGE>

     VII. Section 4 of the Agreement shall be amended in its entirety to read as
follows:

"4.  TERMINATION BY EXECUTIVE UNDER CERTAIN CIRCUMSTANCES. Notwithstanding any
other provision hereof, in the event that (i) the Executive is removed, or
voluntarily resigns upon the request of the Board or a significant shareholder,
from the Company's Board of Directors or is not nominated, appointed or elected
to a new term on the Board of Directors following the expiration of the existing
term, (ii) the composition of the Company's Board of Directors changes from the
date hereof by the addition of a total of two or more Directors, or by two or
more existing Directors ceasing to serve as Directors for any reason, (iii) the
Company fails to maintain D&O insurance as provided in Section 6 below or (iv)
there is a change of control of the Company, defined as (a) the acquisition by
any person or group of beneficial ownership, direct or indirect, of securities
of the Company representing 50% or more of the combined voting power of the
Company's then outstanding equity securities or (b) the merger or consolidation
of the Company with or into, or the sale or assignment of all or substantially
all the assets of the Company to, another person or entity, provided that
following such transaction the holders of voting stock of the Company
immediately prior to such transaction do not own more than 50% of the voting
stock of the company surviving such transaction or to which such assets are sold
or assigned, then, in any of such events, in addition to any other rights of the
Executive under this Agreement, the Executive may at any time within six (6)
months following such event terminate this Agreement and the Company shall then
pay to the Executive a lump sum payment equivalent to one (1) year compensation
at the rate set forth on Schedule A, and no further Services will be required.
The Executive shall also be entitled to receive C.O.B.R.A. health insurance at
the Company's expense and any other payments as provided in Section 2 above."

     All other terms and provisions of the Agreement shall remain in full force
and effect. This Amendment No. 1 to Executive Services Agreement has been
executed and delivered as of the date first above written.

                                        Simon Worldwide, Inc.

                                        By: /s/ J. Anthony Kouba
                                            -------------------------------
                                            J. Anthony Kouba
                                            Chairman Compensation Committee

                                        By: /s/ Terrence J. Wallock
                                            -------------------------------
                                            Terrence J. Wallock
                                            Assistant Secretary

                                            The Executive

                                            /s/ George G. Golleher
                                            -------------------------------
                                            George G. Golleher
<PAGE>

                 AMENDMENT NO. 1 TO EXECUTIVE SERVICES AGREEMENT

     This Amendment No. 1 to Executive Services Agreement is made as of May 3,
2004 by and between Simon Worldwide, Inc. (the "Company") and J. Anthony Kouba
(the "Executive").

                                  INTRODUCTION

     The Company and the Executive have previously entered into an Executive
Services Agreement dated May 30, 2003 (the "Agreement"). The Company and the
Executive have also previously entered into a letter agreement dated February 7,
2003 whereby the Company agreed to compensate the Executive for, among other
things, the additional obligations, responsibilities and potential liabilities
of serving as the Company's co-chief executive officer, including those under
the Sarbanes-Oxley Act of 2002. The Executive has been instrumental in helping
the Company satisfy its liabilities and attain solvency over the preceding years
and is being asked to perform a significant role in determining the future
course of the business. In order to (i) ensure that the Company might retain his
knowledge, expertise and services in such endeavor, (ii) induce the Executive to
remain as co-CEO since the aforesaid letter agreement has expired and will not
be renewed and (iii) retain the continuing commitment of the Executive to
provide the Company with the substantial time and attention necessary to meet
the needs of the Company, the Company and the Executive agree that the Agreement
shall be amended as follows:

     I.   Section 2 of the Agreement shall be amended in its entirety to read as
follows:

"2.  COMPENSATION. For Services rendered during the term of this Agreement, the
Executive shall be entitled to compensation in the amount and on the payment
terms set forth on Schedule A. The Executive shall also be entitled to
reimbursement of reasonable and necessary out-of-pocket expenses incurred by the
Executive in the ordinary course of business on behalf of the Company in
accordance with Company policy, subject to the presentation of appropriate
documentation. In addition, during the term of this Agreement the Executive and
any dependants shall be entitled to participate at no cost to the Executive in a
health insurance plan maintained by the Company at substantially the same
benefit level as of the date hereof, and along with any dependents shall be
eligible to participate in C.O.B.R.A. coverage at the expense of the Company
following termination of employment hereunder for as long as then permissible
under C.O.B.R.A and at the same benefit level as of the date hereof."

     VIII. Section 3 of the Agreement shall be amended in its entirety to read
as follows:

"3.  TERM. The Executive's engagement by the Company hereunder shall commence on
the date hereof and continue until terminated by either party in accordance with
this Section 3. Such engagement may be terminated by either party without cause
as follows: The Company may terminate this Agreement at any time by giving
notice of termination to the Executive and making a lump sum payment to the
Executive equivalent to one (1) year compensation at the rate set forth on
Schedule A, and no further Services will be required. The Executive may
terminate this Agreement by giving one (1) year prior written notice to the
Company. Following termination of this Agreement, the Company shall pay to the
Executive all compensation and benefits that had accrued, and shall reimburse
all expenses incurred by the Executive, prior to the date of termination in
accordance with Section 2 hereof, and the Company will provide at its sole
expense health care insurance to the Executive under C.O.B.R.A as provided in
Section 2 above. The provisions of Section 4 through 13 hereof and the
C.O.B.R.A. obligations set forth in Section 2 shall survive the termination of
the Agreement and shall continue thereafter in full force and effect."
<PAGE>

     IX.  Section 4 of the Agreement shall be amended in its entirety to read as
follows:

"4.  TERMINATION BY EXECUTIVE UNDER CERTAIN CIRCUMSTANCES. Notwithstanding any
other provision hereof, in the event that (i) the Executive is removed, or
voluntarily resigns upon the request of the Board or a significant shareholder,
from the Company's Board of Directors or is not nominated, appointed or elected
to a new term on the Board of Directors following the expiration of the existing
term, (ii) the composition of the Company's Board of Directors changes from the
date hereof by the addition of a total of two or more Directors, or by two or
more existing Directors ceasing to serve as Directors for any reason, (iii) the
Company fails to maintain D&O insurance as provided in Section 6 below or (iv)
there is a change of control of the Company, defined as (a) the acquisition by
any person or group of beneficial ownership, direct or indirect, of securities
of the Company representing 50% or more of the combined voting power of the
Company's then outstanding equity securities or (b) the merger or consolidation
of the Company with or into, or the sale or assignment of all or substantially
all the assets of the Company to, another person or entity, provided that
following such transaction the holders of voting stock of the Company
immediately prior to such transaction do not own more than 50% of the voting
stock of the company surviving such transaction or to which such assets are sold
or assigned, then, in any of such events, in addition to any other rights of the
Executive under this Agreement, the Executive may at any time within six (6)
months following such event terminate this Agreement and the Company shall then
pay to the Executive a lump sum payment equivalent to one (1) year compensation
at the rate set forth on Schedule A, and no further Services will be required.
The Executive shall also be entitled to receive C.O.B.R.A. health insurance at
the Company's expense and any other payments as provided in Section 2 above."

     All other terms and provisions of the Agreement shall remain in full force
and effect. This Amendment No. 1 to Executive Services Agreement has been
executed and delivered as of the date first above written.

                                        Simon Worldwide, Inc.

                                        By: /s/ George Golleher
                                            -------------------------------
                                            George Golleher
                                            Director

                                        By: /s/ Terrence J. Wallock
                                            -------------------------------
                                            Terrence J. Wallock
                                            Assistant Secretary

                                            The Executive

                                            /s/ J. Anthony Kouba
                                            -------------------------------
                                            J. Anthony Kouba

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