Document:

ex10_2.htm

    
      

    

    Blue
      Holdings, Inc.

    5804
      E.
      Slauson Avenue

    Commerce,
      California 90040

    

    May
      30,
      2007

    

    William
      Adams

    c/o
      Goldring, Hertz & Lichtenstein LLP

    450
      N.
      Roxbury Drive, 8th Floor

    Beverly
      Hills, California 90210

    

    Dear
      Mr.
      Adams:

    

    Reference
      is made to that certain Letter of Intent dated May 11, 2007 (the “LOI”), by and
      between Blue Holdings, Inc., a Nevada corporation (“BLHL”), and William Adams
      (“WA”).  Capitalized terms used but not defined herein shall have the
      meanings ascribed to such terms in the LOI.

    

    On
      May
      21, 2007, BLHL issued to WA a portion of the Base Compensation in the amount
      of
      One Hundred Seventy Five Thousand (175,000) shares of BLHL Common Stock (the
      “Initial Issuance”).

    

    The
      parties desire that the Initial Issuance, and all future issuances issued
      pursuant to the provisions of the LOI, or any definitive agreements entered
      into
      in connection therewith, comply with the NASDAQ Marketplace Rules, and
      specifically, NASDAQ Marketplace Rule 4350(i)(1)(A).

    

    For
      good
      and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereby agree as follows:

    

    1.           No
      issuances of BLHL Common Stock, whether issued as Base Compensation, Incentive
      Compensation, and/or other compensation under the LOI, the Co-Branding
      Agreement, the JV Agreement, and/or any other definitive agreement contemplated
      thereby, shall be made unless and until the approval thereof (by a majority
      of
      the issued and outstanding shares of BLHL) becomes effective in accordance
      with
      the rules and regulations of the Securities and Exchange Commission, and such
      action is consistent with the requirements of the NASDAQ Marketplace
      Rules.  The date that such approval becomes effective shall be
      referred to as the “Effective Date.”  BLHL shall cause the Effective
      Date to occur on or before June 22, 2007.

    
 

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    2.           WA
      hereby acknowledges and agrees that, with respect to the shares of BLHL Common
      Stock underlying the Initial Issuance (the “Initial Shares”), WA shall not,
      until on or following the Effective Date, be eligible or otherwise entitled
      to,
      and shall not: (a) sell, assign, dispose of, transfer or otherwise hypothecate
      the Initial Shares to any third party, (b) vote or direct the voting of the
      Initial Shares, and/or (c) receive any distribution made by BLHL with respect
      to
      the BLHL Common Stock (including the Initial Shares), whether payable in cash,
      securities of BLHL, or other assets.

    

    3.           BLHL
      hereby acknowledges and agrees that, with respect to the issuance of the Initial
      Shares on or following the Effective Date, and with respect each additional
      issuance of BLHL Common Stock under the LOI, the Co-Branding Agreement, the
      JV
      Agreement, and/or any other definitive agreement contemplated thereby, WA shall
      accept the direct issuance thereof, and hereby directs that a portion thereof
      be
      immediately re-issued thereafter to specified designees as follows:

    

    
      	
            	
              a.

            	
              Goldring,
                Hertz & Lichtenstein, L.L.P. – 7.5% of all shares
                issued;

            

    

    

    
      	
            	
              b.

            	
              Sean
                Larkin – 7.5% of all shares issued.

            

    

    

    4.           The
      parties acknowledge and agree that on or following the Effective Date, the
      Initial Shares should be re-issued as follows:

    

    
      	
            	
              a.

            	
              William
                Adams  -  148,750 shares of BLHL Common
                Stock

            

    

    

    
      	
            	
              b.

            	
              Goldring,
                Hertz & Lichtenstein, L.L.P.  -  13,125 shares of
                BLHL Common Stock

            

    

    

    
      	
            	
              c.

            	
              Sean
                Larkin 13,125 shares of BLHL Common
                Stock

            

    

    

    5.           Except
      as expressly amended or modified herein, all terms and conditions of the LOI
      are
      hereby ratified, confirmed and approved and shall remain in full force and
      effect.  In the event of any conflict or inconsistency between this
      letter and the LOI, this Letter shall govern.

    

    6.           This
      letter will be construed in accordance with the laws of the State of California
      without giving effect to its conflicts of law principles.  This letter
      may be executed in any number of counterparts, each of which will be deemed
      to
      be an original, but all of which together will constitute one and the same
      instrument.

     

     

    
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

     

    Please
      acknowledge your acceptance of and agreement with the terms set forth herein
      by
      signing your name where indicated below.

     

     

    
      

      
        	 	
                Very
                  truly yours,

              	 
	 	 	 
	 	 	 
	 	
                /s/
                  Paul Guez

              	 
	 	
                Paul
                  Guez

              	 
	 	
                Chief
                  Executive Officer

              	 

      

      

    

     

    Agreed
      and accepted:

     

     

    
      	 /s/
              William Adams	 
	 William
              Adams	 

    

     

     

    
      

      
        

         

      

       

      3SEPARATION AGREEMENT AND MUTUAL RELEASE

     This  Separation  Agreement and Mutual Release (this "AGREEMENT"), dated as
of  August  10,  2007,  is  entered  into by and between Patron Systems, Inc., a
Delaware  corporation  (the  "COMPANY"),  and  Braden  Waverley,  an  individual
("EXECUTIVE").

A.   The Company  and  Executive  entered into that certain Executive Employment
     Agreement  dated  February  17, 2006 and amended January 24, 2007, June 13,
     2007  and June 28, 2007 (the "EMPLOYMENT AGREEMENT"), pursuant to which the
     Company  employed  Executive,  as  more  fully  described  therein;  and

B.   Executive  resigned  his  employment,  and  resigned  as  a  member  of the
     Company's  board  of  directors,  effective  on  August  13,  2007.

     NOW,  THEREFORE,  for  good  and  valuable  consideration,  the receipt and
sufficiency  of  which  are  hereby  acknowledged,  the  parties hereby agree as
follows:

1.     Resignation;  Termination  of  Employment  Agreement.  Notwithstanding
       ----------------------------------------------------
anything to the contrary which may be contained in the Employment Agreement, the
parties  hereby  acknowledge  and  agree  that, effective as of August 13, 2007:

     1.1     Executive  is  no  longer  employed by the Company in any capacity;

     1.2     The  Employment  Agreement is terminated and of no further force or
effect;  and

     1.3     Except  as  expressly provided herein, all responsibilities, duties
and  obligations  of  Executive  to  the Company and of the Company to Executive
under  the  Employment  Agreement shall be terminated and of no further force or
effect.

2.     Consideration.  As  full and complete consideration for the covenants and
       -------------
agreements  hereunder:

     2.1     The  Company  hereby waives and releases executive from any and all
non-solicitation  and non-competition restrictions set forth in Article 9 of the
Employment  Agreement,  and  hereby  covenants  to  take commercially reasonable
measures  to  ensure  the  continued  effectiveness  of  the  Company's existing
director  and  officer  liability  insurance policy (the "D&O POLICY") until the
statute  of  limitations  for personal claims against Executive as an officer or
director  of  the  Company  shall have run, provided, however, that the measures
taken  to  ensure  such  continued effectiveness shall not violate the fiduciary
duties  of  the  Company's officers and directors to the Company's creditors and
shareholders,  and  provided,  further,  that:

          2.1.1     In  the  event  the  Company  enters  into  a sale of all or
substantially  all  of  its assets or a sale of the outstanding capital stock of
the  Company  for  cash,  the  definitive agreement governing such asset sale or
stock  purchase  shall  provide  for  the  payment of the premiums for continued
coverage  of  the  D&O  Policy  out of the proceeds from the asset sale or stock
purchase;

                                        1
<PAGE>
          2.1.2     The Company will further pay, or arrange for payment of, any
individual  policy deductible expenses accruing to Executive that arise from any
liability  sought  to  be  covered  under  the  D&O  Policy;  and

          2.1.3     The  Company agrees that it shall maintain under its charter
the  current provisions for indemnification of officers and directors, including
former officers and directors, which include full indemnification and limitation
of  liability to the full extent of the law.  The Company further agrees that it
shall not modify, amend or terminate its charter to exclude or limit indemnities
for  its  former  officers,  directors  and  employees.

The  Company  further  agrees  that  it  shall repay, upon the execution of this
agreement  by the parties hereto, all expenses incurred on behalf of the Company
by  Executive  through  the date hereof in compliance with the Company's expense
reimbursement  policies,  including  the  reasonable  legal  fees  incurred  by
Executive  in  conjunction  with  this  Agreement.

     2.2     With  full  understanding  of  his  rights  under  applicable  law,
Executive  hereby waives all severance payments and continuation of benefits set
forth  in  Section 4.1 of the Employment Agreement, hereby terminates and waives
all  accrued  but unused vacation or PTO days pursuant to the Company's vacation
policy  as  of  the  date  hereof,  and  acknowledges  and  agrees  that no such
obligations  remain  outstanding,  and  hereby  forfeits  all  outstanding stock
options  granted  to  Executive by the Company.  Notwithstanding anything to the
contrary  which  may  be  contained  in  the  Employment  Agreement,  Executive
acknowledges that the consideration set forth in Section 2.1 fully satisfies all
obligations  of the Company to Executive under the Employment Agreement (whether
attributable  to  salary,  bonus  payments,  vacation  pay,  expenses  or  other
amounts).

3.     Additional  Covenants  of  the  Company  and  Executive.
       -------------------------------------------------------

     3.1     The  Company hereby expressly covenants that it shall not object to
any  of  the  following  actions,  including,  without  limitation,  the  use or
disclosure of any information related to the Company which is known by Executive
in  connection  with  such  actions,  taken  by Executive after the date hereof:

          3.1.1     Executive's  employment  by  any  person  who  subsequently
purchases  the  Company's  assets  or  stock;

          3.1.2     Executive's  submission of an offer to acquire the Company's
assets;  and

          3.1.3     Executive's  engagement  as  a  consultant  to the Company's
creditors  to aid in the sale of the Company or substantially all of its assets;

     3.2     The Company shall take all necessary actions to ensure continuation
of  Executive's  health and dental benefits under COBRA, provided that Executive
shall  pay  all  premiums  in  connection  with  such  continued  coverage.

     3.3     The  Company  shall  take  all  necessary  actions  to  ensure  the
expedient rollover of Executive's 401K funds to an investment retirement account
of  Executive's  choice.

                                        2
<PAGE>
     3.4     Neither  party  shall make any statement or allegation to any third
party,  nor  make  any public announcement, press release or broad-tape release,
public speech or permit press interviews, which expressly or impliedly indicates
that the other party breached or defaulted under any obligation or commitment to
it, or which might reasonably have the effect of disparaging such other party or
injuring  or  harming  the  personal  or business reputation of the other party.

     3.5     Executive represents and agrees that, as of the date hereof, he has
turned  over  to  the Company all files, memoranda, records and other documents,
and any other physical or personal property that are the property of the Company
that  he  had  in  his  possession,  custody  or  control  (whether  directly or
indirectly)  on  the  date  hereof.

4.     Mutual  Release.
       ---------------

     4.1     Executive's  Release.  Subject to Section 5, Executive, for himself
             --------------------
and  on  behalf  of his successors, assigns, agents, attorneys, representatives,
heirs,  executors  and administrators (collectively, the "EXECUTIVE PARTIES" and
individually,  an "EXECUTIVE PARTY"), hereby releases and forever discharges and
agrees  to  hold  harmless  the  Company  and its successors, assigns, officers,
directors,  shareholders,  employees,  affiliates,  subsidiaries,  parent
corporations,  agents,  attorneys  and  representatives,  past  and  present
(collectively,  the  "COMPANY PARTIES" and individually, a "COMPANY PARTY") from
any  and  all demands, claims, duties, actions, obligations or causes of action,
assessments,  losses,  damages,  liabilities,  costs  and  expenses  (including
attorneys'  fees)  of any kind, nature or description, whether known or unknown,
suspected  or  unsuspected,  fixed  or  contingent  (collectively, the "RELEASED
CLAIMS"),  that  Executive or any Executive Party currently has or possesses, or
had  prior  to  the  date  of this Agreement or at any time may have against the
Company  and/or  against one or more Company Parties, arising out of, based upon
or  in  any  way related to (i) the Employment Agreement or any other employment
agreement,  or  any  other  contracts,  express or implied, any covenant of good
faith  and  fair  dealing, express or implied, any theory of wrongful discharge,
negligence, negligent or intentional infliction of emotional distress, negligent
or  intentional  interference  with  contract or prospective economic advantage,
negligent  or  intentional  misrepresentation, conspiracy, defamation (including
libel  and  slander), invasion of privacy, fraud, quantum meruit, failure to pay
compensation  of  any  kind, failure to pay equal compensation for equal work or
any  legal  restriction  on  the  Company's  right  to terminate employees; (ii)
Executive's employment with the Company or the cessation thereof, any claims for
wages,  compensation  of any kind, automobile allowance, vacation pay, severance
pay, bonuses or damages of any kind whatsoever, including without limitation all
claims  for  or  under, among other things, Title VII of the Civil Rights Act of
1964,  as  amended (42 U.S.C. sections 2000e, et seq.), the Fair Labor Standards
Act,  including  the  Equal  Pay  Act (29 U.S.C. section 206(d) and interpretive
regulations),  the  Employment Retirement Income Security Act of 1974 (29 U.S.C.
sections  100,  et  seq.),  the Family and Medical Leave Act (29 U.S.C. sections
2601,  et  seq. and 29 C.F.R. Part 825), the Americans with Disabilities Act (42
U.S.C.  sections  12101,  et  seq.),  the  Age Discrimination in Employment Act,
including  the  Older Worker Benefits Protection Act (29 U.S.C. sections 623, et
seq.), the Worker Adjustment and Retraining Notification Act (29 U.S.C. sections
2101,  et  seq.),  the  United  States and Illinois Constitutions, and any other
federal or state law, whether statutory or common law; (iii) all matters arising
out  of  any  common  law  or  federal,  state,  local

                                        3
<PAGE>
or  other  governmental  statute, regulation, ordinance or wage order, including
any federal, state or local law (statutory or decisional) or regulation relating
to  employment,  employment discrimination or harassment; or (iv) arising out of
any  principle of contract law or common law relating to Executive's employment.

     4.2     The  Company's  Release.  Subject  to  Section  5, the Company, for
             -----------------------
itself  and  on  behalf  of  the  Company  Parties,  hereby releases and forever
discharges  and  agrees to hold harmless the Executive and the Executive Parties
from any and all Released Claims that the Company or any Company Party currently
has  or possesses, or had prior to the date of this Agreement or at any time may
have against the Executive and/or against one or more Executive Parties, arising
out  of, based upon or in any way related to (i) the Employment Agreement or any
other  employment  agreement,  or  any  other contracts, express or implied, any
covenant  of  good  faith  and  fair  dealing, express or implied, any theory of
negligence, negligent or intentional infliction of emotional distress, negligent
or  intentional  interference  with  contract or prospective economic advantage,
negligent  or  intentional  misrepresentation, conspiracy, defamation (including
libel  and  slander),  invasion  of  privacy  and/or  fraud;  (ii)  Executive's
employment  with the Company or the cessation thereof, (iii) all matters arising
out  of  any  common law or federal, state, local or other governmental statute,
regulation or ordinance; or (iv) arising out of any principle of contract law or
common  law.

     4.3     Claims  not  Released.  The  releases  set  forth in this Section 4
             ---------------------
shall  not  (i)  release  obligations  incurred pursuant to this Agreement; (ii)
release  claims  in  connection  with events occurring after the date hereof; or
(iii)  preclude  any  party  hereto  from  enforcing  its  rights  and  remedies
hereunder.

     4.4     Executive's  Acknowledgement.  Executive knowingly and voluntarily,
             ----------------------------
of  his  own  free  will  without any duress, being fully informed and after due
deliberation, accepts the terms of this Agreement, including without limitation,
the  releases  set  forth  in this Section 4, and signs the same as his own free
act.  Executive  understands  that  as  a  result  of  executing this Agreement,
Executive  will  not  have  the  right  to  assert  that  the Company unlawfully
terminated  his  employment  or  violated  any  of  his  rights.

     4.5     Third  Parties  Bound.  Each  party  hereto shall cause each of its
             ---------------------
successors,  assigns,  agents,  attorneys,  representatives,  heirs,  executors,
administrators,  officers,  directors,  shareholders,  employees,  affiliates,
subsidiaries,  parent  corporations,  attorneys and representatives, as the case
may  be, to be bound by this Agreement to the extent that it has the power to do
so.

5.     Effective  Date.  Executive  has  been  advised  that  he  may take up to
       ---------------
twenty-one  (21)  days  to  consider this Agreement, and he has knowingly waived
such  requirement.  Upon  Executive's execution of this Agreement Executive will
have  seven  (7)  days  to  revoke  this Agreement.  In the event of revocation,
Executive  must  present  written notice of revocation to the Company.  If seven
(7)  days  pass  without such revocation, this Agreement will become binding and
effective  on  the  eighth  (8th)  day  after  execution (the "EFFECTIVE DATE").

6.     Mutual Representations and Warranties.  Each of the Company and Executive
       -------------------------------------
(each,  a  "REPRESENTING  PARTY")  represents  and  warrants  to the other that:

                                        4
<PAGE>
     6.1     The  Representing  Party  has  all necessary power and authority to
enter  into  this Agreement and has taken all action necessary to consummate the
transactions  contemplated  hereby  and  to  perform  each  of  their respective
obligations  hereunder.

     6.2     The  Representing  Party  has  duly  executed  and  delivered  this
Agreement,  and  this  Agreement is a legal, valid and binding obligation of the
Representing  Party,  enforceable  against  the Representing Party in accordance
with  its  terms.

     6.3     None  of  the execution, delivery or performance of this Agreement,
the consummation of the transactions contemplated hereby, nor compliance by such
Representing  Party  with any of the provisions hereof, will violate or conflict
with any agreement by which the Representing Party is bound, and that no notices
to,  declaration,  filing  or  registration  with,  approvals or consents of, or
assignments  by, any persons or entities are necessary to be made or obtained by
the Representing Party in connection with the execution, delivery or performance
of  this  Agreement.

     6.4     The Representing Party has not assigned or transferred, in whole or
in  part,  or  purported  to  assign  or  transfer any claim or portion of claim
against  the  other party hereto which is covered by this Agreement which it may
now  have  or  claim  to  have,  of  whatever  kind  or  nature,  either  in its
representative or in its individual capacities, to any other person or entity in
any  manner including, without limitation, assignment or transfer by subrogation
or  by  operation  of  law.

7.     Severability.  The  parties  hereto  agree  that  if any term, provision,
       ------------
covenant  or  condition  of  this  Agreement  is found to be invalid, illegal or
unenforceable,  then  the parties hereto shall renegotiate such term, provision,
covenant  or  condition  in  good  faith  to effectuate its/their purpose and to
conform  the  provision(s)  to applicable law to make such term valid, legal and
enforceable,  or  if  such  term,  provision,  covenant  or condition may not be
amended  or  modified  so  as  to become valid, legal and enforceable, then such
term,  provision,  covenant  or  condition  shall  be  deemed  excised from this
Agreement,  and  the  remaining terms and conditions hereof shall remain in full
force  and  effect  and  shall  in  no  way  be impaired or invalidated thereby.

8.     Successors  and  Assigns;  Assignment.  This Agreement shall inure to the
       -------------------------------------
benefit of, and shall be binding upon, the successors, heirs, and assigns of the
parties  hereto.  This  Agreement  may  not  be  assigned by either party hereto
without  the  prior written consent of the other; provided, that the Company and
the  Company Parties may assign this Agreement in whole or in part to any person
or entity which succeeds to all or a portion of such person's or entity's rights
(whereupon  such  assignor and assignee shall both benefit from this Agreement).

9.     Third  Party  Beneficiaries.  The parties hereto expressly agree that the
       ---------------------------
Executive  Parties and the Company Parties shall be third-party beneficiaries of
this  Agreement.

10.     Arbitration.  In  the  event  of  a  disagreement or dispute between the
        -----------
Company  and  Executive  related  to  this Agreement, the matter will be finally
settled  in  Illinois,  by  expedited  arbitration by a single arbitrator who is
licensed  to practice law in a proceeding conducted under the expedited rules of
the  American  Arbitration  Association's  National  Rules For The Resolution Of
Employment  Disputes,  or  successor rules, the arbitrator also apportioning the
costs  of  the

                                        5
<PAGE>
arbitration,  including  the  fees  of  the  arbitrator.  The  decision  of  the
arbitrator  shall  be in writing and shall be final and binding upon the parties
hereto and will not be subject to appeal.  If either party hereto fails to abide
by  such  decision,  the  other  may seek the order of a court which shall enter
judgment  on  the decision of the arbitrator, and the party hereto so failing to
abide  shall  be  responsible  for  the  payment  of  the  expenses of the court
proceeding  and  all resulting enforcement expenses, including actual attorneys'
fees.  The  Company  and  Executive shall instruct the arbitrator that a written
decision  is  to  be  rendered within three (3) months of the appointment of the
arbitrator  and  any party hereto causing unreasonable delay shall be subject to
sanctions  by  the  arbitrator.

11.     Attorneys'  Fees.  If any party hereto brings any action in any forum to
        ----------------
enforce or interpret any term of this Agreement, the non-prevailing party in any
such  action  shall  pay  all  the  reasonable attorneys' and arbitrator's fees,
expenses  and  costs  incurred  by the other in connection with any such action.

12.     Governing  Law.  This  Agreement and all matters arising hereunder or in
        --------------
connection  herewith  shall  be governed by and construed in accordance with the
laws  of  the  State of Illinois, without regard to conflicts of law principles.

13.     Further  Assurances.  Upon  the  terms  and  subject  to  the conditions
        -------------------
contained  herein, the parties hereto agree (a) to use all reasonable efforts to
take,  or  cause  to  be  taken, all actions and to do, or cause to be done, all
things  necessary,  proper  or  advisable  to  consummate and make effective the
transactions  contemplated  by  this  Agreement,  (b)  to execute any documents,
instruments  or  agreements  of  any  kind  which may be reasonably necessary or
advisable  to  carry out any of the transactions contemplated hereunder, and (c)
to  cooperate  with  each  other  in  connection  with  the  foregoing.

14.     Entire  Agreement.  This  Agreement  sets forth the entire understanding
        -----------------
between  the parties hereto and, supersedes any prior or contemporaneous written
or  oral  agreements  or  understandings  pertaining to the terms hereof and the
termination  of  Executive's  employment  relationship  with  the  Company.  The
parties  hereto  agree  that,  except  as  expressly  provided herein, any prior
agreements  and  understandings  between  them,  whether oral or written, and of
whatever  nature,  are  hereby  cancelled,  terminated  and  superseded  by this
Agreement  and  shall  be of no further force or effect.  Executive acknowledges
that  he  has  not  relied  upon  any  representation  or  statements  by  any
representative  of  the  Company  concerning the subject matter hereof except as
expressly  set  forth  herein.  This Agreement may only be modified by a writing
signed  by  each  party  hereto.

15.     Non-Admission  of  Liability  or  Wrongdoing.  By  entering  into  this
        --------------------------------------------
Agreement,  neither  party hereto admits any impropriety, illegality, wrongdoing
or  liability  of  any  kind  whatsoever, and each party hereto hereby expressly
denies  the  same.

16.     Tax  Withholding.  All  amounts  required  to  be  paid  by  the Company
        ----------------
pursuant to this Agreement shall be subject to reduction in order to comply with
applicable  Federal,  state  and  local  tax  withholding  requirements.

                                        6
<PAGE>
17.     Notice.  Any  notice  to  be  provided hereunder shall be in writing and
        ------
shall  be  deemed  to have been delivered (a) the day of delivery, if personally
delivered,  (b)  three (3) business days after having been mailed via U.S. mail,
registered  or certified mail, return receipt requested, postage prepaid, or (c)
one  (1)  business  day  after  having been sent by national reputable overnight
courier.  Notices  shall be addressed to the parties hereto at the addresses set
forth  on  the  signature pages hereto.  Any party hereto may change the address
for  notices  hereunder  by  delivery  of  written notice in accordance with the
provisions  set  forth  herein.

18.     Facsimile;  Counterparts.  This  Agreement  may be executed by facsimile
        ------------------------
and in counterparts, each of which shall be deemed an original, but all of which
taken  together  shall  constitute  one  and  the  same  instrument.

19.     Headings.  The  headings of the sections contained in this Agreement are
        --------
for convenience only and shall not be deemed to control or affect the meaning or
construction  of  any  provision  of  this  Agreement.

                            [Signature Page Follows]

                                        7
<PAGE>
IN WITNESS WHEREOF, the parties hereto hereby execute this Agreement as of the
date first above written.

                                        PATRON SYSTEMS, INC.,

                                        a Delaware corporation

       /s/ Braden Waverley              By:         /s/ Robert Cross
------------------------------------       -------------------------------------

Braden Waverley                         Name: Robert Cross

                                        Title: Chairman and Acting CEO

Address:                                Address:
                                        -------

714 S. Thurlow St.                      5775 Flatiron Parkway, Suite 230
Hinsdale, IL 60521                      Boulder, Colorado 80301
                                        Attn: Chief Executive Officer
                                        Tel: (303) 541-1005
                                        Fax: (303) 245-7346

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]