Document:

Exhibit
      10.1

    

    Assignment
      of Shares and Assumption of Obligations

    

    WHEREAS,
      on December 6, 2000, PubliCARD, Inc. (“Assignor”) purchased 60,058 shares of
      Series A Preferred Stock (the “Series A Preferred Stock”) of TECSEC,
      Incorporated ("TECSEC") pursuant to the Series A Preferred Stock Purchase
      Agreement between Assignor and TECSEC; 

    

    WHEREAS,
      in connection with the purchase of the shares of Series A Preferred Stock,
      Assignor and TECSEC entered into the Investor Rights Agreement (the “Investor
      Rights Agreement”) and Assignor, TECSEC and certain other parties entered into
      the Right of First Refusal and Co-Sale Agreement (the “Right of First Refusal
      and Co-Sale Agreement”);

    

    WHEREAS,
      Sallyport Investment Partnership, a Partnership (the “Assignee”) desires to
      acquire the shares of Series A Preferred Stock held by Assignor and the rights
      of Assignor under the Series A Preferred Stock Purchase Agreement, Investor
      Rights Agreement and Right of First Refusal and Co-Sale Agreement that may
      be
      assigned by Assignor and to assume Assignor’s obligation thereunder;
      and

    

    WHEREAS,
      TECSEC has consented to the transactions contemplated hereby.

    

    NOW
      THEREFORE, Assignor and Assignee hereby agree as follows:

    

    
      	 	
              1.

            	
              Assignor
                hereby assigns and transfers to Assignee its right, title and interest
                in
                and to the 60,058 shares of Series A Preferred Stock of TECSEC held
                by it
                (the “Shares”) and Assignee hereby delivers in connection with such
                assignment and the other transactions contemplated hereby a check
                in the
                amount of $150,000 in immediately available funds, payable to
                Assignor.

            

    

    

    
      	 	
              2.

            	
              Assignee
                hereby undertakes to use its best efforts transfer to Assignor or
                cause to
                be issued to Assignor two and one-half percent (2 1/2 %) of common
                stock
                (fully diluted) to Assignor for no additional consideration. This
                calculation of 2 1/2 % is to be computed as a percentage of TecSec’s
                existing common stock (fully diluted) plus common stock that may
                be issued
                as a result of Assignees financing of TecSec this
                year.

            

    

    

    
      	 	
              3.

            	
              Assignor
                hereby assigns to Assignee all rights under the Series A Preferred
                Stock
                Purchase Agreement, the Investor Rights Agreement and Right of First
                Refusal and Co-Sale Agreement that may be assigned by Assignor
                thereunder.

            

    

    

    
      	 	
              4.

            	
              Assignee
                hereby assumes all of Assignor’s obligations under the Investor Rights
                Agreement and Right of First Refusal and Co-Sale
                Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 	
              5.

            	
              Representations
                of Assignor:

            

    

    

      
        
          
            	
                  	a.	
                    Assignor
                      has the requisite corporate power, authority and legal right
                      to execute
                      and deliver this Agreement and to consummate the transactions
                      contemplated
                      hereby. This Agreement has been duly executed and delivered
                      by Assignor
                      and constitutes the legal, valid and binding obligations of
                      Assignor
                      enforceable against it in accordance with its terms, except
                      as such
                      enforceability may be limited by bankruptcy laws and other
                      similar laws
                      affecting creditors’ rights generally and general principles of
                      equity.

                  

          

        

      

    
      
         

        
          	
                	b.	
                  Assignor
                    is the sole record and beneficial owner of the Shares, free and
                    clear of
                    any pledge, hypothecation, assignment, deposit arrangement, encumbrance,
                    lien (statutory or other), charge or other security interest,
                    voting trust
                    agreement, or other adverse claim of any kind or nature whatsoever
                    (“Liens”), and upon consummation of the transactions contemplated by
                    this
                    Agreement, Assignee will acquire good, valid and marketable title
                    to the
                    Shares, free and clear of any Liens. There are no voting trusts,
                    proxies
                    or other agreements or understandings with respect to the voting
                    of the
                    Shares. 

                

        

      

    

    

    

    
      	Dated: October 13, 2006 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	/s/Joseph
              E. Sarachek 	 	/s/Thomas
              W. Charron Jr. 	 	 
	Chief Executive Officer 	 	Thomas W. Charron Jr. 	 	 
	 	 	Principal 	 	 
	PubliCARD, Inc. 	 	Sallyport Investment
              PartnershipExhibit
      10.2

    

    TecSec
      Incorporated

    1953
      Gallows Road

    Vienna,
      Virginia, 22182

    

    

    October
      13, 2006

    

    

    PubliCARD
      Inc.

    New
      York,
      New York

    

    
      	
            	Attention:	
              Mr.
                Joe Sarachek

            

    

    

    Dear
      Sir:

    

    This
      letter confirms my communication with Mr. Joe Sarachek of Friday afternoon,
      October 13, 2006. 

    

    In
      conjunction with the conveyance of TecSec’s Series A Convertible Preferred
      heretofore held by PubliCARD Inc to Sally Port Global Corporation, TecSec
      confirms by this communication, its agreement to issue two and one-half percent
      (2 1/2 %) of common stock (fully diluted) to PubliCARD Inc. for no additional
      consideration. 

     

    This
      calculation of 2 1/2 % is to be computed as a percentage of TecSec’s existing
      common stock (fully diluted) plus common stock that may be issued as a
      result of Sally Port Global’s financing of TecSec this year.

    

    

    Very
      truly yours,

    

    /s/John
      R. Petty

    John
      R.
      PettyExhibit 4.1

RIGHTS AGREEMENT
AMENDMENT

                    This
Amendment, dated as of October 23, 2006, to the Rights Agreement, dated as of
September 5, 2002 (the “Rights
Agreement”), is between Pharmos Corporation, a Nevada
corporation (the “Company”),
and American Stock Transfer & Trust Co. (the “Rights Agent”).

                    The
Company and the Rights Agent have heretofore executed and entered into the
Rights Agreement. Pursuant to Section 27 of the Rights Agreement, the
Company and the Rights Agent may from time to time supplement or amend the
Rights Agreement in accordance with the provisions of Section 27 thereof
and the Company desires and directs the Rights Agent to so amend the Rights
Agreement. All acts and things necessary to make this Amendment a valid
agreement according to its terms have been done and performed, and the
execution and delivery of this Amendment by the Company and the Rights Agent
have been in all respects authorized by the Company and the Rights Agent. 

                    In
consideration of the foregoing premises and mutual agreements set forth in the
Rights Agreement and this Amendment, the parties hereto agree as follows:

                    1.            
Section 1(a) of the Rights Agreement, which sets forth the definition of
“Acquiring Person,” is hereby modified and amended to read in its entirety as
follows:

                    (a)          
“Acquiring Person” shall mean any Person (as such term is hereinafter defined)
who or which, together with all Affiliates (as such term is hereinafter
defined) and Associates (as such term is hereinafter defined) of such Person,
shall be the Beneficial Owner (as such term is hereinafter defined) of 15% or
more of the shares of Common Stock then outstanding or who was such a
Beneficial Owner at any time after the date hereof, whether or not such Person
continues to be the Beneficial Owner of 15% or more of the outstanding shares
of Common Stock. Notwithstanding the foregoing, (i) in no event shall a Person
who or which, together with all Affiliates and Associates of such Person, is
the Beneficial Owner of less than 15% of the Company’s outstanding shares of
Common Stock become an Acquiring Person solely as a result of a reduction of
the number of shares of outstanding Common Stock, including repurchases of
outstanding shares of Common Stock by the Company, which reduction increases
the percentage of outstanding shares of Common Stock beneficially owned by such
Person (provided that any subsequent increase in the amount of Common Stock
beneficially owned by such Person, together with all Affiliates and Associates
of such Person, without the prior approval of the Company shall cause such
Person to be an Acquiring Person); (ii) the term Acquiring Person shall not
mean (A) the Company, (B) any subsidiary of the Company (as such term is
hereinafter defined), (C) any employee benefit plan of the Company or any of
its subsidiaries, or (D) any entity holding securities of the Company
organized, appointed or established by the Company or any of its subsidiaries
for or pursuant to the terms of any such plan; and (iii) no Person shall be
deemed to be an Acquiring Person if (A) within five business days after such
Person would otherwise 

have become an
Acquiring Person (but for the operation of this clause (iii)), such Person
notifies the Board of Directors that such Person did so inadvertently and,
within two business days after such notification, such Person is the Beneficial
Owner of less than 15% of the outstanding shares of Common Stock, (B) by reason
of such Person’s Beneficial Ownership of 15% or more of the outstanding shares
of Common Stock on the date hereof if, prior to the Record Date, such Person
notifies the Board of Directors that such Person is no longer the Beneficial
Owner of 15% or more of the then outstanding shares of Common Stock or (C) the
Board of Directors determines in good faith that a Person who would otherwise
be an Acquiring Person, as defined pursuant to the foregoing provisions of this
paragraph (a), has become such inadvertently, and such Person divests
Beneficial Ownership as promptly as practicable of a sufficient number of
shares of Common Stock so that such Person would no longer be an Acquiring
Person, as defined pursuant to the foregoing provisions of this paragraph (a).
In addition, notwithstanding the foregoing, none of Vela Pharmaceuticals Inc.,
a Delaware corporation (“Vela”), or any Affiliate or Associate thereof, or any
stockholder of Vela shall become an “Acquiring Person” as a result of (i) the
approval, execution, delivery or performance of that certain Agreement and Plan
of Merger dated as of March 14, 2006, as amended (and as the same may hereafter
be amended from time to time, the “Merger Agreement”), by and among the
Company, Vela and Vela Acquisition Corporation and Vela Acquisition No.2
Corporation, including the approval, execution, delivery or performance of any
amendments thereto, (ii) the consummation of the Merger (as such term is
defined in the Merger Agreement), (iii) the issuance of Common Stock pursuant
to the Merger Agreement, (iv) the announcement of the Merger Agreement or the
Merger or (v) the consummation of any other transaction contemplated by the
Merger Agreement. Furthermore, none of Vela or any Affiliate or Associate
thereof, or any stockholder of Vela shall become an “Acquiring Person” until
such time as such Person, together with all Affiliates and Associates, is the
Beneficial Owner of 20% or more of the shares of Common Stock then outstanding,
including any shares of Common Stock issued pursuant to the Merger Agreement
and held by such Person, together with all Affiliates and Associates.

                    2.          Section 1(i)
of the Rights Agreement, which sets forth the definition of “Stock Acquisition
Date,” is hereby amended by adding as the final sentence thereto the following:

	
   

  	
Notwithstanding
  anything in the Agreement to the contrary, no Stock Acquisition Date shall be
  deemed to have occurred in connection with or as a result of (i) the
  approval, execution, delivery or performance of the Merger Agreement, (ii)
  the consummation of the Merger, (iii) the issuance of Common Stock pursuant
  to the Merger Agreement, (iv) the announcement of the Merger Agreement or the
  Merger or (v) the consummation of any other transaction contemplated by the
  Merger Agreement.

  

                    3.          Section 3(b)
of the Rights Agreement is hereby amended by adding as the final sentence
thereto the following:

	
   

  	
   

  
	
   

  	
  Notwithstanding
  anything in this Agreement to the contrary, no Distribution Date shall be
  deemed to have occurred in connection with or as a result of (i) the
  approval, execution, delivery or performance of the Merger Agreement, (ii)
  the consummation of the Merger, (iii) the issuance of Common Stock pursuant
  to the Merger Agreement, (iv) the announcement of the Merger Agreement or the
  Merger or (v) the consummation of any other transaction contemplated by the
  Merger Agreement.

  

                    4.          Section 11(a)(ii)
of the Rights Agreement is hereby amended by adding as the final sentence
thereto the following: 

	
   

  	
   

  
	
   

  	
  Notwithstanding
  anything in this Agreement to the contrary, no event described in this
  Section 11(a)(ii) shall be deemed to have occurred solely as a result of (i)
  the approval, execution, delivery or performance of the Merger Agreement,
  (ii) the consummation of the Merger, (iii) the issuance of Common Stock
  pursuant to the Merger Agreement, (iv) the announcement of the Merger
  Agreement or the Merger or (v) the consummation of any other transaction
  contemplated by the Merger Agreement.

  

                    5.          Section 13(a)
of the Rights Agreement is hereby amended by adding as the final sentence
thereto the following: 

	
   

  	
   

  
	
   

  	
  Notwithstanding
  anything in this Agreement to the contrary, none of the events described in
  clauses (x) through (z) of the first sentence of Section 13(a)
  shall be deemed to have occurred solely as a result of (i) the approval,
  execution, delivery or performance of the Merger Agreement, (ii) the
  consummation of the Merger, (iii) the issuance of Common Stock pursuant to
  the Merger Agreement, (iv) the announcement of the Merger Agreement or the
  Merger or (v) the consummation of any other transaction contemplated by the
  Merger Agreement.

  

                    6.          Except
as expressly amended hereby, the Rights Agreement remains in full force and
effect in accordance with its terms. By executing this Amendment below, the
Company certifies that this Amendment has been executed and delivered in
compliance with the terms of Section 27 of the Rights Agreement. 

                    7.          This
Amendment to the Rights Agreement shall be governed by and construed in
accordance with the laws of the State of Nevada.

                    8.          This
Amendment to the Rights Agreement may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed an original, and
all such counterparts shall together constitute but one and the same
instrument. 

                    9.          Except
as expressly set forth herein, this Amendment to the Rights Agreement shall not
by implication or otherwise alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the
Rights Agreement, all of which are ratified and affirmed in all respects and
shall continue in full force and effect. 

                    10.        If
any term, provision, covenant or restriction of this Amendment is held by a
court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Amendment shall remain in full force and effect.

                    11.        Capitalized
terms used herein but not defined shall have the meanings given to them in the
Rights Agreement.

                    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to the Rights
Agreement to be duly executed as of the day and year first above written.

	
   

  	
   

  	
   

  
	
   

  	
  Pharmos
  Corporation

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
   

  
	
   

  	
  American
  Stock Transfer & Trust Co., as Rights Agent

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  

  
	
   

  	
   

  	
  Title:

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