PUBLICARD INC
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v055828_ex10-1.htm
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Exhibit
      10.1</u></strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Assignment
      of Shares and Assumption of Obligations</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
      on December 6, 2000, PubliCARD, Inc. (&#8220;Assignor&#8221;) purchased 60,058 shares of
      Series A Preferred Stock (the &#8220;Series A Preferred Stock&#8221;) of TECSEC,
      Incorporated ("TECSEC") pursuant to the Series A Preferred Stock Purchase
      Agreement between Assignor and TECSEC; </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
      in connection with the purchase of the shares of Series A Preferred Stock,
      Assignor and TECSEC entered into the Investor Rights Agreement (the &#8220;Investor
      Rights Agreement&#8221;) and Assignor, TECSEC and certain other parties entered into
      the Right of First Refusal and Co-Sale Agreement (the &#8220;Right of First Refusal
      and Co-Sale Agreement&#8221;);</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
      Sallyport Investment Partnership, a Partnership (the &#8220;Assignee&#8221;) 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&#8217;s obligation thereunder;
      and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
      TECSEC has consented to the transactions contemplated hereby.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOW
      THEREFORE, Assignor and Assignee hereby agree as follows:</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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 &#8220;Shares&#8221;) 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.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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&#8217;s
                existing common stock (fully diluted) plus common stock that may
                be issued
                as a result of Assignees financing of TecSec this
                year.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assignee
                hereby assumes all of Assignor&#8217;s obligations under the Investor Rights
                Agreement and Right of First Refusal and Co-Sale
                Agreement.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Representations
                of Assignor:</font></div>
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                  <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a.</font></td>
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                    <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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&#8217; rights generally and general principles of
                      equity.</font></div>
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                <td align="left" style="width: 18pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b.</font></td>
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                  <div align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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
                    (&#8220;Liens&#8221;), 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. </font></div>
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            <td width="25%"><font size="2">Dated: October 13, 2006</font>&#160;</td>
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            <td width="25%" style="border-bottom: black thin solid;"><font size="2">/s/Joseph
              E. Sarachek</font>&#160;</td>
            <td width="5%" style="border-bottom: #ffffff solid;">&#160;</td>
            <td width="25%" style="border-bottom: black thin solid;"><font size="2">/s/Thomas
              W. Charron Jr.</font>&#160;</td>
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            <td width="25%"><font size="2">Chief Executive Officer</font>&#160;</td>
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            <td width="25%"><font size="2">Thomas W. Charron Jr.</font>&#160;</td>
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            <td width="25%"><font size="2">Principal</font>&#160;</td>
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            <td width="25%"><font size="2">PubliCARD, Inc.</font>&#160;</td>
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            <td width="25%"><font size="2">Sallyport Investment
              Partnership</font>&#160;</td>
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