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Exhibit 10.7    
    

 
 

EXECUTIVE AGREEMENT    
    

        AGREEMENT, dated as of the 2nd day of June, 2005 (this "Agreement"), by and between The Titan Corporation, a Delaware corporation (the "Company"), and Robert
Osterloh (the "Executive"). 

        WHEREAS,
the Board of Directors of the Company (the "Board"), has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined herein). The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive's full attention and dedication to
the current Company and in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that
the compensation and benefits expectations of the Executive will be satisfied and that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board
has caused the Company to enter into this Agreement. 

        NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

        Section 1.    Certain Definitions.    (a) "Effective
Date" means the first date during the Change of Control Period (as defined herein) on which a Change of Control occurs. Notwithstanding anything in this Agreement to the contrary, if a Change of
Control occurs and if the Executive's employment with the Company is terminated prior to the date on which the Change of Control occurs, and if it is reasonably believed by the Executive that such
termination of employment (1) was at the request of a third party that has taken steps reasonably calculated to effect a Change of Control or (2) otherwise arose in connection with or
anticipation of a Change of Control, then "Effective Date" means the date immediately prior to the date of such termination of employment. The occurrence of any subsequent Change of Control shall not
create a new Effective Date for purposes hereof. 

        (b)   "Change
of Control Period" means the period commencing on the date hereof and ending on the third anniversary of the date hereof; provided,
however, that, commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof, the "Renewal
Date"), the Change of Control Period shall be automatically extended so as to terminate three years from such Renewal Date. 

        (c)   "Affiliated
Company" means any company controlled by, controlling or under common control with the Company. 

        (d)   "Change
of Control" means: 

        (1)   The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the
then-outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (B) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however,
that, for purposes of this Section 1(d), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition
by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliated company or (iv) any acquisition by any
corporation pursuant to a transaction that complies with Sections 1(d)(3)(A), 1(d)(3)(B) and 1(d)(3)(C). 

        (2)   Individuals
who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board;  provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for 

 

election
by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board. 

        (3)   Consummation
of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets of the Company (a "Business Combination"),
in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of
common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company's assets
either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such
ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

        (4)   Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

        Section 2.    Employment Period.    The Company hereby agrees
to continue the Executive in its employ, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the third anniversary of the Effective
Date (the "Employment Period"). The Employment Period shall terminate earlier upon the Executive's termination of employment for any reason. 

        Section 3.    Terms of
Employment.    (a) Position and Duties. ((1) During the Employment Period, (A) the Executive's
(x) position (excluding offices, title and reporting requirements), authority, duties and responsibilities shall not be materially and adversely inconsistent with the Executive's position as an
executive of the Company immediately prior to the Effective Date, and (y) duties, functions and responsibilities shall be substantially the same in nature as those in effect immediately prior
to the Effective Date (except that no promotion or addition of duties or responsibilities consistent with the Executive's position shall be considered to change the Executive's duties, functions or
responsibilities in a manner that is adverse to the Executive under this Section a)(1)(A)(y)); and (B) the Executive's services shall be performed at the office where the Executive was
employed immediately preceding the Effective Date or at any other location less than 20 miles from such office. 

        (2)   A
requirement that the Executive comply with any general L-3 Communications Holdings, Inc. ("L-3") group corporate approval policy or
other L-3 group-wide corporate governance policies applicable to the Executive, and provided to the Executive at the time he is 

2

 

required
to so comply, shall not be a breach by the Company of Section 3(a)(1). Also, the fact that the Company shall cease to be a publicly held company or shall become a wholly owned
subsidiary of L-3 shall not be a breach by the Company of Section 3(a)(1). 

        (3)   During
the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable
attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for the Executive to
(A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement. It is
expressly understood and agreed that, to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct
of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive's responsibilities to the Company. 

        (b)    Annual Compensation.    (1) Base
Salary. During the Employment Period, the Executive shall receive an annual base salary and the highest car allowance then in effect during the Change of Control Period
(collectively the "Annual Base Salary") at an annual rate at least equal to 12 times the highest monthly base salary (inclusive of car allowance) paid or payable, including any base salary that has
been earned but deferred, to the Executive by the Company and the affiliated companies in respect of the 12-month period immediately preceding the month in which the Effective Date occurs.
The Annual Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Employment Period, the Annual Base Salary shall be reviewed periodically, with the
same regularity and at the same or substantially the same period(s) of time that annual base salaries for executives of L-3 and its subsidiaries are generally reviewed. Any increase in the
Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual Base Salary shall not be reduced after any such increase and the term
"Annual Base Salary" shall refer to the Annual Base Salary as so increased. 

        (2)    Annual Bonus.    In addition to the Annual Base Salary, the Executive shall be eligible
to earn, for each fiscal year ending during the Employment Period, an annual bonus (the "Annual Bonus") in cash, upon satisfaction of performance criteria established by the Company, in consultation
with the Executive and in a manner consistent with past practice, in a target amount equal to 60% of the Annual Base Salary for achievement of target performance levels, plus an additional amount of
up to 15% of the Annual Base Salary for achievement above target performance levels. Each such Annual Bonus shall be paid
no later than the end of the third month of the fiscal year next following the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus. 

        (c)    Other Compensation and Benefits.    

        (1)    Incentive, Savings and Retirement Plans.    During the Employment Period, the Executive
shall be entitled to participate in all cash incentive, equity incentive, savings and retirement plans, practices, policies, and programs applicable generally to other executives of the Company and
the affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than
the most favorable of those provided by the Company and the Affiliated Companies for the Executive under 

3

 

such
plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the Effective Date. 

        (2)    Welfare Benefit Plans.    During the Employment Period, the Executive and/or the
Executive's family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and
the Affiliated Companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other executives of the Company and the Affiliated Companies. 

        (3)    Expenses.    During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with Company policy. 

        (4)    Fringe Benefits.    During the Employment Period, the Executive shall be entitled to
fringe benefits, including, without limitation, tax and financial planning services, payment of club dues, and, if applicable, use of an automobile and payment of related expenses, in accordance with
the most favorable plans, practices, programs and policies of the Company and the Affiliated Companies in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date. 

        (5)    Office and Support Staff.    During the Employment Period, the Executive shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to exclusive personal secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by
the Company and the Affiliated Companies at any time during the 120-day period immediately preceding the Effective Date. 

        (6)    Vacation.    During the Employment Period, the Executive shall be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and practices of the Company and the Affiliated Companies as in effect for the Executive at any time during the
120-day period immediately preceding the Effective Date. 

        Section 4.    Termination of
Employment.    (a) Death or Disability. The Executive's employment shall terminate automatically if the
Executive dies during the Employment Period. If the Company determines in good faith that the Disability (as defined herein) of the Executive has occurred during the Employment Period (pursuant to the
definition of "Disability"), it may give to the Executive written notice in accordance with Section 11(b) of its intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the "Disability Effective Date"),  provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time performance of the
Executive's duties. "Disability" means the absence of the Executive from the Executive's duties with the Company on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive's
legal representative. 

        (b)    Cause.    The Company may terminate the Executive's employment during the Employment
Period for Cause. "Cause" means: 

        (1)   the
willful and continued failure of the Executive to perform substantially the Executive's duties (as contemplated by Section 3(a)(1)(A)) with the Company or any
Affiliated Company (other than any such failure resulting from incapacity due to physical or mental illness or following the Executive's delivery of a Notice of Termination for Good Reason), provided
that the Company demonstrates that such failure has a material and injurious effect on the Company and provided, further, that a written demand for substantial performance is first delivered to the
Executive by the Board or the Chief Executive Officer of the Company that specifically identifies the manner in 

4

 

which
the Board or the Chief Executive Officer of the Company believes that the Executive has not substantially performed the Executive's duties and the resulting material, injurious effect on the
Company; 

        (2)   (A)
the willful engaging by the Executive in gross misconduct or (B) the conviction or plea of nolo contendere of
the Executive of a felony (such conviction having been finally adjudicated without further appeal and which final adjudication shall for the avoidance of doubt include any plea bargain approved by a
court of applicable jurisdiction) that is materially and demonstrably injurious to the Company; or 

        (3)   the
willful engaging by the Executive in a transaction in connection with the performance of duties to the Company which transaction is adverse to the interests of the
Company and is engaged in for personal profit. 

For
purposes of this Section 4(b), no act, or failure to act, on the part of the Executive shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith
or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer of the Company or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. 

        (c)    Good Reason.    The Executive's employment may be terminated by the Executive for Good
Reason or by the Executive voluntarily without Good Reason; provided, however, that any termination for Good Reason may only occur if the Executive provides a Notice of Termination (as defined below)
of Good Reason within 180 days after the occurrence of the event giving rise to the claim of Good Reason. "Good Reason" means: 

        (1)   the
Company's material breach of Section 3(a)(1)(A); 

        (2)   any
failure by the Company to comply with any of the provisions of Section 3(b), other than an isolated, insubstantial and inadvertent failure not occurring in
bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Executive; 

        (3)   the
Company's requiring the Executive to be based at any office or location other than as provided in Section 3(a)(1)(B); 

        (4)   any
purported termination by the Company of the Executive's employment otherwise than as expressly permitted by this Agreement; or 

        (5)   any
failure by the Company to comply with and satisfy Section 10(c); 

        provided, however, that any of the events described in this Section 4(c) shall constitute Good Reason only if the Company fails to
cure such event within 10 business days after receipt from Executive of written notice of the event which purports to constitute Good Reason. Notwithstanding the foregoing, upon any indictment of the
Executive for any felony that could result in the Executive's termination for Cause, if the Company suspends the Executive's employment hereunder during the period following such indictment and
through final adjudication of any such indictment, then, so long as the Company continues to provide the Executive with (x) payment of his annual
base salary (in accordance with the normal payroll practices of the Company) as in effect on the effective date of any such suspension, which base salary shall in no event be increased at any time
during such suspension, and (y) coverage for himself and his dependents under the group health plan in which the Executive and his dependents participated in immediately prior to the suspension
date, none of the suspension, nor any of the consequences of such suspension (e.g., the reduction in Annual Base Salary and elimination of the Annual Bonus), shall constitute Good Reason hereunder. 

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        (d)    Notice of Termination.    Any termination by the Company for Cause, or by the Executive
for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11(b). "Notice of Termination" means a written notice that
(1) indicates the specific termination provision in this Agreement relied upon, (2) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the provision so indicated, and (3) if the Date of Termination (as defined herein) is other than the date of receipt of such
notice, specifies the Date of Termination (which Date of Termination shall be not more than 30 days after the giving of such notice). The failure by the Executive or the Company to set forth in
the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude
the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's respective rights hereunder. 

        (e)    Date of Termination.    "Date of Termination" means (1) if the Executive's
employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified in the Notice of Termination,
(which date shall not be more than 30 days after the giving of such notice), as the case may be, (2) if the Executive's employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be 30 days after the date on which the Company notifies the Executive of such termination, and (3) if the Executive's employment is terminated
by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be. 

        Section 5.    Obligations of the Company upon
Termination.    (a) Good Reason; Other Than for Cause, Death or Disability. If, during the Employment Period,
the Company terminates the Executive's employment other than for Cause or Disability or the Executive terminates employment for Good Reason: 

        (1)   the
Company shall pay to the Executive, in a lump sum in cash on the Date of Termination the aggregate of the following amounts: 

        (A)  the
sum of (i) the Executive's Annual Base Salary through the Date of Termination to the extent not theretofore paid, (ii) the product of (x) the
higher of (I) the Executive's highest bonus earned under the Company's Annual Incentive Plan or any successor plan (excluding any extraordinary or nonrecurring bonus and any bonus under the
special performance-based cash incentive program (as disclosed in the Company's Proxy dated April 29, 2005)), for the last three full fiscal years prior to the Effective Date (or for such
lesser number of full fiscal years prior to the Effective Date for which the Executive was eligible to earn such of bonus, and annualized in the case of any bonus earned for a partial fiscal year) and
(II) the Annual Bonus paid or payable, including any bonus or portion thereof that has been earned but deferred (and annualized for any fiscal year consisting of less than 12 full months or
during which the Executive was employed for less than 12 full months), for the most recently completed fiscal year during the Employment Period, if any (such higher amount, the "Highest Annual Bonus")
and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365, and (iii) any
compensation previously deferred by the Executive (together with any accrued interest or earnings thereon) and any accrued vacation pay, in each case, to the extent not theretofore paid (the sum of
the amounts described in subclauses (i), (ii) and (iii), the "Accrued Obligations"); and 

        (B)  the
amount equal to the product of (i) three and (ii) the sum of (x) the Executive's Annual Base Salary and (y) the Highest Annual Bonus; 

6

 

        (2)   for
three years after the later of: (x) the Executive's Date of Termination; or (y) expiration of the Executive's COBRA benefits rights following the
Executive's Date of Termination, (or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy), the Company shall continue benefits to the Executive
and/or the Executive's family at least equal to those that would have been provided to them in accordance with the plans, programs, practices and policies described in Section 3(b)(4) if the
Executive's employment had not been terminated or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the
affiliated companies and their families, provided, however, that, if the Executive becomes reemployed with another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such
applicable period of eligibility. For purposes of determining eligibility (but not the time of commencement of benefits) of the Executive for retiree benefits pursuant to such plans, practices,
programs and policies, the Executive shall be considered to have remained employed until three years after the Date of Termination and to have retired on the last day of such period; 

        (3)   all
options granted by L-3 to the Executive will be treated in a manner consistent with the provisions of the applicable L-3 plan under which
such options have been granted; 

        (4)   the
Company shall, at its sole expense as incurred, provide the Executive with outplacement services the scope and provider of which shall be selected by the Executive
in the Executive's sole discretion provided, that the cost of such outplacement shall not exceed $100,000; 

        (5)   to
the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or
that the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and the Affiliated Companies (such other amounts and benefits, the "Other
Benefits"); and 

        (6)   all
account balances under the Company's deferred compensation plan, or any successor thereto, shall immediately and fully vest as of the Executive's Date of Termination
and the Executive will be paid an amount equal to 120% of the amount of any Company matching or profit-sharing contributions made to the Executive's account under the Company's 401(k) plan prior to
the date of the Executive's termination of employment that are unvested as of such date, in which the Executive fails to vest due to the termination of Executive's employment (or, in lieu of such
payment if permissible under the applicable 401(k) plan, the Executive shall become vested in any such then-unvested contributions). 

        (b)    Death.    If the Executive's employment is terminated by reason of the Executive's
death during the Employment Period, the Company shall provide the Executive's estate or beneficiaries with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and shall
have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive's estate or beneficiary, as applicable, in a lump sum in cash within 10 days of
the Date of Termination. With respect to the provision of the Other Benefits, the term "Other Benefits" as utilized in this Section 5(b) shall include, without limitation, and the Executive's
estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and the Affiliated Companies to the estates and beneficiaries
of peer executives of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other peer executives
and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive's estate and/or the Executive's beneficiaries,
as in effect on the date of the Executive's death 

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with
respect to other peer executives of the Company and the affiliated companies and their beneficiaries. 

        (c)    Disability.    If the Executive's employment is terminated by reason of the Executive's
Disability during the Employment Period, the Company shall provide the Executive's estate or beneficiaries with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and
shall have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive in a lump sum in cash on the Date of Termination. With respect to the provision
of the Other Benefits, the term "Other Benefits" as utilized in this Section 5(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability
and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated Companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer executives and their families at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive's family, as in effect at any time thereafter generally with respect to other peer
executives of the Company and the Affiliated Companies and their families. 

        (d)    Cause; Other Than for Good Reason.    If the Executive's employment is terminated for
Cause during the Employment Period, the Company shall provide to the Executive (1) the Executive's Annual Base Salary through the Date of Termination, (2) the amount of any compensation
previously deferred by the Executive, and (3) the Other Benefits, in each case, to the extent theretofore unpaid, and shall have no other severance obligations under this Agreement. If the
Executive voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, the Company shall provide to the Executive the Accrued Obligations and the timely
payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. In such case, all the Accrued Obligations shall be paid to the Executive in a lump sum in
cash on the Date of Termination. 

        Section 6.    Non-exclusivity of Rights.    Nothing
in this Agreement shall prevent or limit the Executive's continuing or future participation in any plan, program, policy or practice provided by the Company or the Affiliated Companies and for which
the Executive may qualify, nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any other contract or agreement with the
Company or the affiliated companies. Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement
with the Company or the Affiliated Companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as
explicitly modified by this Agreement. Notwithstanding the foregoing, if the Executive receives payments and benefits pursuant to Section 5(a) of this Agreement, the Executive shall not be
entitled to any severance pay or benefits pursuant to any employment agreement or other agreement or arrangement the Executive has with the Company or under any severance plan, program or policy of
the Company and the Affiliated Companies. 

        Section 7.    Full Settlement.    The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim,
right or action that the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay
as incurred (within 10 days following the Company's receipt of an invoice from the Executive), to the full extent permitted by law, all legal fees and expenses that the Executive may reasonably
incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof (including as 

8

 

a
result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each case, interest on any delayed payment at the applicable federal rate provided for in
Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"); provided, however, that the Executive shall be required to repay any amounts advanced to the Executive (with
interest as calculated in the same manner described in this Section 7 above) if a court of competent jurisdiction determines that such claim, right or action was frivolous or brought by the
Executive in bad faith. 

        Section 8.    Certain Additional Payments by the Company.    

        (a)   Anything
in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be subject to the
Excise Tax, then the Executive shall be entitled to receive an additional payment (the "Gross-Up Payment") in an amount such that, after payment by the Executive of all taxes (and any
interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this
Section 8(a), if it shall be determined that the Executive is entitled to the Gross-Up Payment, but that the Parachute Value of all Payments do not exceed 110% of the Safe Harbor
Amount, then no Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate,
equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under Section 5(a)(i)(B), unless an alternative method
of reduction is elected by the Executive, and in any event shall be made in such a manner as to maximize the Value of all Payments actually made to the Executive. For purposes of reducing the Payments
to the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amount payable under this Agreement would not result in a
reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 8(a). The Company's obligation to
make Gross-Up Payments under this Section 8 shall not be conditioned upon the Executive's termination of employment. 

        (b)   Subject
to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when a Gross-Up
Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Deloitte & Touche, LLP, or such other
nationally recognized certified public accounting firm as may be designated by the Executive (the "Accounting Firm"). The Accounting Firm shall provide detailed supporting calculations both to the
Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Executive may appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the
Company. Any Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the Executive within 5 days of the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (the
"Underpayment"), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 8(c) and the Executive thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the 

9

 

Underpayment
that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 

        (c)   The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10 business days after the Executive is informed in writing of such claim. The Executive shall
apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day
period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall: 

        (1)   give
the Company any information reasonably requested by the Company relating to such claim, 

        (2)   take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company, 

        (3)   cooperate
with the Company in good faith in order effectively to contest such claim, and 

        (4)   permit
the Company to participate in any proceedings relating to such claim; 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 8(c), the Company shall control all proceedings taken in
connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect
of such claim and may, at its sole discretion, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine;  provided, however,
that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided,
further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which the Gross-Up Payment would
be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

        (d)   If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 8(c)) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), a determination is made
that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the
expiration of 30 days after such determination, then 

10

 

such
advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be
paid. 

        (e)   Notwithstanding
any other provision of this Section 8, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other
applicable taxing authority, for the benefit of the Executive, all or any portion of the Gross-Up Payment, and the Executive hereby consents to such withholding. 

        (f)    Definitions.    The following terms shall have the following meanings for purposes of this Section 8. 

        (i)    "Excise
Tax" shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 

        (ii)   The
"Net After-Tax Amount" of a Payment shall mean the Value of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1
and 4999 of the Code and applicable state and local law, determined by applying the highest marginal rates that are expected to apply to the Executive's taxable income for the taxable year in which
the Payment is made. 

        (iii)  "Parachute
Value" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of
such Payment that constitutes a "parachute payment" under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will
apply to such Payment. 

        (iv)  A
"Payment" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of
the Executive, whether paid or payable pursuant to this Agreement or otherwise. 

        (v)   The
"Safe Harbor Amount" means the maximum Parachute Value of all Payments that the Executive can receive without any Payments being subject to the Excise Tax. 

        (vi)  "Value"
of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, as
determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code. 

        Section 9.    Restrictive Covenants.    

        (a)    Confidential Information.    The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the Company or the Affiliated Companies, and their respective businesses, which information, knowledge or
data shall have
been obtained by the Executive during the Executive's employment by the Company or the affiliated companies and which information, knowledge or data shall not be or become public knowledge (other than
by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those
persons designated by the Company. 

        (b)    No Solicitation or Hire.    During the Employment Period, and for a period of one
(1) year following the date of the Executive's termination of employment for any reason, the Executive shall not, directly or indirectly, for his own account or for the account of any other
individual or entity, solicit for employment or employ, or in any manner attempt to solicit for employment or employ, any individual employed by the Company or the affiliated companies during the one
(1) year period prior to the date of such termination of employment. 

11

 

        (c)    No Withholding of Amounts.    In no event shall an asserted violation of the provisions
of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 

        Section 10.    Successors.    (a) This Agreement is
personal to the Executive, and, without the prior written consent of the Company, shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal representatives. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section 10(c), without the
prior written consent of the Executive this Agreement shall not be assignable by the Company. 

        (c)   The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place. "Company" means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or
otherwise. 

        Section 11.    Miscellaneous.    (a) This Agreement
shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or
their respective successors and legal representatives. 

        (b)   All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

if
to the Executive: 

Robert
Osterloh

c/o of The Titan Corporation

3033 Science Park Road

San Diego, CA 92121-1199 

if
to the Company: 

The
Titan Corporation

3033 Science Park Road

San Diego, CA 92121-1199 

Attention:
General Counsel 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (c)   The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

        (d)   The
Company may withhold from any amounts payable under this Agreement such United States federal, state or local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation. 

        (e)   The
Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the
Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason 

12

 

pursuant
to Sections 4(c)(1) through 4(c)(5), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

        (f)    The
Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is "at will" and, subject to Section 1(a), prior to the Effective Date, the Executive's employment may be terminated by either the Executive or the
Company at any time prior to the Effective Date, in which case the Executive shall have no further rights under this Agreement. From and after the Effective Date, except as specifically provided
herein, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof. 

        Section 12.    Termination of the Merger Agreement.    This
Agreement shall terminate upon a termination of that certain Agreement and Plan of Merger by and among L-3, Saturn VI Acquisition Corp., and the Company, dated as of June 2, 2005
(the "Merger Agreement"). If this Agreement terminates as a result of a termination of the Merger Agreement, agreements previously in effect between the Executive and the Company shall not be
superceded. 

13

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authorization from the Board, the Company has caused these presents to be executed in its name on its
behalf, all as of the day and year first above written. 

	 	 	    
 Robert Osterloh
	

 	
 	

 	

 
	 	 	THE TITAN CORPORATION
	

 	
 	

By	

    

	

 	
 	

Name: Gene Ray

Title: President and Chief Executive Officer

14

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Exhibit 10.8    
    

 
 

EXECUTIVE AGREEMENT    
    

        AGREEMENT, dated as of the 2nd day of June, 2005 (this "Agreement"), by and between The Titan Corporation, a Delaware corporation (the "Company"), and Earl
Pontius (the "Executive"). 

        WHEREAS,
the Board of Directors of the Company (the "Board"), has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined herein). The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change of Control and to encourage the Executive's full attention and dedication to
the current Company and in the event of any threatened or pending Change of Control, and to provide the Executive with compensation and benefits arrangements upon a Change of Control that ensure that
the compensation and benefits expectations of the Executive will be satisfied and that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board
has caused the Company to enter into this Agreement. 

        NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 

        Section 1.    Certain Definitions.    (a) "Effective
Date" means the first date during the Change of Control Period (as defined herein) on which a Change of Control occurs. Notwithstanding anything in this Agreement to the contrary, if a Change of
Control occurs and if the Executive's employment with the Company is terminated prior to the date on which the Change of Control occurs, and if it is reasonably believed by the Executive that such
termination of employment (1) was at the request of a third party that has taken steps reasonably calculated to effect a Change of Control or (2) otherwise arose in connection with or
anticipation of a Change of Control, then "Effective Date" means the date immediately prior to the date of such termination of employment. The occurrence of any subsequent Change of Control shall not
create a new Effective Date for purposes hereof. 

        (b)   "Change
of Control Period" means the period commencing on the date hereof and ending on the third anniversary of the date hereof; provided,
however, that, commencing on the date one year after the date hereof, and on each annual anniversary of such date (such date and each annual anniversary thereof, the "Renewal
Date"), the Change of Control Period shall be automatically extended so as to terminate three years from such Renewal Date. 

        (c)   "Affiliated
Company" means any company controlled by, controlling or under common control with the Company. 

        (d)   "Change
of Control" means: 

        (1)   The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the
then-outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (B) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however,
that, for purposes of this Section 1(d), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the Company, (ii) any acquisition
by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliated company or (iv) any acquisition by any
corporation pursuant to a transaction that complies with Sections 1(d)(3)(A), 1(d)(3)(B) and 1(d)(3)(C). 

        (2)   Individuals
who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board;  provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for 

 

election
by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the
election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board. 

        (3)   Consummation
of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets of the Company (a "Business Combination"),
in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of
common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company's assets
either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such
ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

        (4)   Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

        Section 2.    Employment Period.    The Company hereby agrees
to continue the Executive in its employ, subject to the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the third anniversary of the Effective
Date (the "Employment Period"). The Employment Period shall terminate earlier upon the Executive's termination of employment for any reason. 

        Section 3.    Terms of
Employment.    (a) Position and Duties. ((1) During the Employment Period, (A) the Executive's
(x) position (excluding offices, title and reporting requirements), authority, duties and responsibilities shall not be materially and adversely inconsistent with the Executive's position as an
executive of the Company immediately prior to the Effective Date, and (y) duties, functions and responsibilities shall be substantially the same in nature as those in effect immediately prior
to the Effective Date (except that no promotion or addition of duties or responsibilities consistent with the Executive's position shall be considered to change the Executive's duties, functions or
responsibilities in a manner that is adverse to the Executive under this Section a)(1)(A)(y)); and (B) the Executive's services shall be performed at the office where the Executive was
employed immediately preceding the Effective Date or at any other location less than 20 miles from such office. 

        (2)   A
requirement that the Executive comply with any general L-3 Communications Holdings, Inc. ("L-3") group corporate approval policy or
other L-3 group-wide corporate governance policies applicable to the Executive, and provided to the Executive at the time he is 

2

 

required
to so comply, shall not be a breach by the Company of Section 3(a)(1). Also, the fact that the Company shall cease to be a publicly held company or shall become a wholly owned
subsidiary of L-3 shall not be a breach by the Company of Section 3(a)(1). 

        (3)   During
the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to devote reasonable
attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently such responsibilities. During the Employment Period, it shall not be a violation of this Agreement for the Executive to
(A) serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the performance of the Executive's responsibilities as an employee of the Company in accordance with this Agreement. It is
expressly understood and agreed that, to the extent that any such activities have been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct
of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere with the performance of the Executive's responsibilities to the Company. 

        (b)    Annual Compensation.    (1) Base
Salary. During the Employment Period, the Executive shall receive an annual base salary and the highest car allowance then in effect during the Change of Control Period
(collectively the "Annual Base Salary") at an annual rate at least equal to 12 times the highest monthly base salary (inclusive of car allowance) paid or payable, including any base salary that has
been earned but deferred, to the Executive by the Company and the affiliated companies in respect of the 12-month period immediately preceding the month in which the Effective Date occurs.
The Annual Base Salary shall be paid at such intervals as the Company pays executive salaries generally. During the Employment Period, the Annual Base Salary shall be reviewed periodically, with the
same regularity and at the same or substantially the same period(s) of time that annual base salaries for executives of L-3 and its subsidiaries are generally reviewed. Any increase in the
Annual Base Salary shall not serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual Base Salary shall not be reduced after any such increase and the term
"Annual Base Salary" shall refer to the Annual Base Salary as so increased. 

        (2)    Annual Bonus.    In addition to the Annual Base Salary, the Executive shall be eligible
to earn, for each fiscal year ending during the Employment Period, an annual bonus (the "Annual Bonus") in cash, upon satisfaction of performance criteria established by the Company, in consultation
with the Executive and in a manner consistent with past practice, in a target amount equal to 60% of the Annual Base Salary for achievement of target performance levels, plus an additional amount of
up to 15% of the Annual Base Salary for achievement above target performance levels. Each such Annual Bonus shall be paid
no later than the end of the third month of the fiscal year next following the fiscal year for which the Annual Bonus is awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus. 

        (c)    Other Compensation and Benefits.    

        (1)    Incentive, Savings and Retirement Plans.    During the Employment Period, the Executive
shall be entitled to participate in all cash incentive, equity incentive, savings and retirement plans, practices, policies, and programs applicable generally to other executives of the Company and
the affiliated companies, but in no event shall such plans, practices, policies and programs provide the Executive with incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is applicable), savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than
the most favorable of those provided by the Company and the Affiliated Companies for the Executive under 

3

 

such
plans, practices, policies and programs as in effect at any time during the 120-day period immediately preceding the Effective Date. 

        (2)    Welfare Benefit Plans.    During the Employment Period, the Executive and/or the
Executive's family, as the case may be, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and
the Affiliated Companies (including, without limitation, medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other executives of the Company and the Affiliated Companies. 

        (3)    Expenses.    During the Employment Period, the Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in accordance with Company policy. 

        (4)    Fringe Benefits.    During the Employment Period, the Executive shall be entitled to
fringe benefits, including, without limitation, tax and financial planning services, payment of club dues, and, if applicable, use of an automobile and payment of related expenses, in accordance with
the most favorable plans, practices, programs and policies of the Company and the Affiliated Companies in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date. 

        (5)    Office and Support Staff.    During the Employment Period, the Executive shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to exclusive personal secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by
the Company and the Affiliated Companies at any time during the 120-day period immediately preceding the Effective Date. 

        (6)    Vacation.    During the Employment Period, the Executive shall be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and practices of the Company and the Affiliated Companies as in effect for the Executive at any time during the
120-day period immediately preceding the Effective Date. 

        Section 4.    Termination of
Employment.    (a) Death or Disability. The Executive's employment shall terminate automatically if the
Executive dies during the Employment Period. If the Company determines in good faith that the Disability (as defined herein) of the Executive has occurred during the Employment Period (pursuant to the
definition of "Disability"), it may give to the Executive written notice in accordance with Section 11(b) of its intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the "Disability Effective Date"),  provided that, within the 30 days
after such receipt, the Executive shall not have returned to full-time performance of the
Executive's duties. "Disability" means the absence of the Executive from the Executive's duties with the Company on a full-time basis for 180 consecutive business days as a result of
incapacity due to mental or physical illness that is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the Executive's
legal representative. 

        (b)    Cause.    The Company may terminate the Executive's employment during the Employment
Period for Cause. "Cause" means: 

        (1)   the
willful and continued failure of the Executive to perform substantially the Executive's duties (as contemplated by Section 3(a)(1)(A)) with the Company or any
Affiliated Company (other than any such failure resulting from incapacity due to physical or mental illness or following the Executive's delivery of a Notice of Termination for Good Reason), provided
that the Company demonstrates that such failure has a material and injurious effect on the Company and provided, further, that a written demand for substantial performance is first delivered to the
Executive by the Board or the Chief Executive Officer of the Company that specifically identifies the manner in 

4

 

which
the Board or the Chief Executive Officer of the Company believes that the Executive has not substantially performed the Executive's duties and the resulting material, injurious effect on the
Company; 

        (2)   (A)
the willful engaging by the Executive in gross misconduct or (B) the conviction or plea of nolo contendere of
the Executive of a felony (such conviction having been finally adjudicated without further appeal and which final adjudication shall for the avoidance of doubt include any plea bargain approved by a
court of applicable jurisdiction) that is materially and demonstrably injurious to the Company; or 

        (3)   the
willful engaging by the Executive in a transaction in connection with the performance of duties to the Company which transaction is adverse to the interests of the
Company and is engaged in for personal profit. 

For
purposes of this Section 4(b), no act, or failure to act, on the part of the Executive shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith
or without reasonable belief that the Executive's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer of the Company or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. 

        (c)    Good Reason.    The Executive's employment may be terminated by the Executive for Good
Reason or by the Executive voluntarily without Good Reason; provided, however, that any termination for Good Reason may only occur if the Executive provides a Notice of Termination (as defined below)
of Good Reason within 180 days after the occurrence of the event giving rise to the claim of Good Reason. "Good Reason" means: 

        (1)   the
Company's material breach of Section 3(a)(1)(A); 

        (2)   any
failure by the Company to comply with any of the provisions of Section 3(b), other than an isolated, insubstantial and inadvertent failure not occurring in
bad faith and that is remedied by the Company promptly after receipt of notice thereof given by the Executive; 

        (3)   the
Company's requiring the Executive to be based at any office or location other than as provided in Section 3(a)(1)(B); 

        (4)   any
purported termination by the Company of the Executive's employment otherwise than as expressly permitted by this Agreement; or 

        (5)   any
failure by the Company to comply with and satisfy Section 10(c); 

        provided, however, that any of the events described in this Section 4(c) shall constitute Good Reason only if the Company fails to
cure such event within 10 business days after receipt from Executive of written notice of the event which purports to constitute Good Reason. Notwithstanding the foregoing, upon any indictment of the
Executive for any felony that could result in the Executive's termination for Cause, if the Company suspends the Executive's employment hereunder during the period following such indictment and
through final adjudication of any such indictment, then, so long as the Company continues to provide the Executive with (x) payment of his annual
base salary (in accordance with the normal payroll practices of the Company) as in effect on the effective date of any such suspension, which base salary shall in no event be increased at any time
during such suspension, and (y) coverage for himself and his dependents under the group health plan in which the Executive and his dependents participated in immediately prior to the suspension
date, none of the suspension, nor any of the consequences of such suspension (e.g., the reduction in Annual Base Salary and elimination of the Annual Bonus), shall constitute Good Reason hereunder. 

5

 

        (d)    Notice of Termination.    Any termination by the Company for Cause, or by the Executive
for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 11(b). "Notice of Termination" means a written notice that
(1) indicates the specific termination provision in this Agreement relied upon, (2) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the provision so indicated, and (3) if the Date of Termination (as defined herein) is other than the date of receipt of such
notice, specifies the Date of Termination (which Date of Termination shall be not more than 30 days after the giving of such notice). The failure by the Executive or the Company to set forth in
the Notice of Termination any fact or circumstance that contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude
the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's respective rights hereunder. 

        (e)    Date of Termination.    "Date of Termination" means (1) if the Executive's
employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified in the Notice of Termination,
(which date shall not be more than 30 days after the giving of such notice), as the case may be, (2) if the Executive's employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be 30 days after the date on which the Company notifies the Executive of such termination, and (3) if the Executive's employment is terminated
by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Effective Date, as the case may be. 

        Section 5.    Obligations of the Company upon
Termination.    (a) Good Reason; Other Than for Cause, Death or Disability. If, during the Employment Period,
the Company terminates the Executive's employment other than for Cause or Disability or the Executive terminates employment for Good Reason: 

        (1)   the
Company shall pay to the Executive, in a lump sum in cash on the Date of Termination the aggregate of the following amounts: 

        (A)  the
sum of (i) the Executive's Annual Base Salary through the Date of Termination to the extent not theretofore paid, (ii) the product of (x) the
higher of (I) the Executive's highest bonus earned under the Company's Annual Incentive Plan or any successor plan (excluding any extraordinary or nonrecurring bonus and any bonus under the
special performance-based cash incentive program (as disclosed in the Company's Proxy dated April 29, 2005)), for the last three full fiscal years prior to the Effective Date (or for such
lesser number of full fiscal years prior to the Effective Date for which the Executive was eligible to earn such of bonus, and annualized in the case of any bonus earned for a partial fiscal year) and
(II) the Annual Bonus paid or payable, including any bonus or portion thereof that has been earned but deferred (and annualized for any fiscal year consisting of less than 12 full months or
during which the Executive was employed for less than 12 full months), for the most recently completed fiscal year during the Employment Period, if any (such higher amount, the "Highest Annual Bonus")
and (y) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365, and (iii) any
compensation previously deferred by the Executive (together with any accrued interest or earnings thereon) and any accrued vacation pay, in each case, to the extent not theretofore paid (the sum of
the amounts described in subclauses (i), (ii) and (iii), the "Accrued Obligations"); and 

        (B)  the
amount equal to the product of (i) three and (ii) the sum of (x) the Executive's Annual Base Salary and (y) the Highest Annual Bonus; 

6

 

        (2)   for
three years after the later of: (x) the Executive's Date of Termination; or (y) expiration of the Executive's COBRA benefits rights following the
Executive's Date of Termination, (or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy), the Company shall continue benefits to the Executive
and/or the Executive's family at least equal to those that would have been provided to them in accordance with the plans, programs, practices and policies described in Section 3(b)(4) if the
Executive's employment had not been terminated or, if more favorable to the Executive, as in effect generally at any time thereafter with respect to other peer executives of the Company and the
affiliated companies and their families, provided, however, that, if the Executive becomes reemployed with another employer and is eligible to receive
medical or other welfare benefits under another employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such
applicable period of eligibility. For purposes of determining eligibility (but not the time of commencement of benefits) of the Executive for retiree benefits pursuant to such plans, practices,
programs and policies, the Executive shall be considered to have remained employed until three years after the Date of Termination and to have retired on the last day of such period; 

        (3)   all
options granted by L-3 to the Executive will be treated in a manner consistent with the provisions of the applicable L-3 plan under which
such options have been granted; 

        (4)   the
Company shall, at its sole expense as incurred, provide the Executive with outplacement services the scope and provider of which shall be selected by the Executive
in the Executive's sole discretion provided, that the cost of such outplacement shall not exceed $100,000; 

        (5)   to
the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or
that the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company and the Affiliated Companies (such other amounts and benefits, the "Other
Benefits"); and 

        (6)   all
account balances under the Company's deferred compensation plan, or any successor thereto, shall immediately and fully vest as of the Executive's Date of Termination
and the Executive will be paid an amount equal to 120% of the amount of any Company matching or profit-sharing contributions made to the Executive's account under the Company's 401(k) plan prior to
the date of the Executive's termination of employment that are unvested as of such date, in which the Executive fails to vest due to the termination of Executive's employment (or, in lieu of such
payment if permissible under the applicable 401(k) plan, the Executive shall become vested in any such then-unvested contributions). 

        (b)    Death.    If the Executive's employment is terminated by reason of the Executive's
death during the Employment Period, the Company shall provide the Executive's estate or beneficiaries with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and shall
have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive's estate or beneficiary, as applicable, in a lump sum in cash within 10 days of
the Date of Termination. With respect to the provision of the Other Benefits, the term "Other Benefits" as utilized in this Section 5(b) shall include, without limitation, and the Executive's
estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most favorable benefits provided by the Company and the Affiliated Companies to the estates and beneficiaries
of peer executives of the Company and the Affiliated Companies under such plans, programs, practices and policies relating to death benefits, if any, as in effect with respect to other peer executives
and their beneficiaries at any time during the 120-day period immediately preceding the Effective Date or, if more favorable to the Executive's estate and/or the Executive's beneficiaries,
as in effect on the date of the Executive's death 

7

 

with
respect to other peer executives of the Company and the affiliated companies and their beneficiaries. 

        (c)    Disability.    If the Executive's employment is terminated by reason of the Executive's
Disability during the Employment Period, the Company shall provide the Executive's estate or beneficiaries with the Accrued Obligations and the timely payment or delivery of the Other Benefits, and
shall have no other severance obligations under this Agreement. The Accrued Obligations shall be paid to the Executive in a lump sum in cash on the Date of Termination. With respect to the provision
of the Other Benefits, the term "Other Benefits" as utilized in this Section 5(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive, disability
and other benefits at least equal to the most favorable of those generally provided by the Company and the Affiliated Companies to disabled executives and/or their families in accordance with such
plans, programs, practices and policies relating to disability, if any, as in effect generally with respect to other peer executives and their families at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive's family, as in effect at any time thereafter generally with respect to other peer
executives of the Company and the Affiliated Companies and their families. 

        (d)    Cause; Other Than for Good Reason.    If the Executive's employment is terminated for
Cause during the Employment Period, the Company shall provide to the Executive (1) the Executive's Annual Base Salary through the Date of Termination, (2) the amount of any compensation
previously deferred by the Executive, and (3) the Other Benefits, in each case, to the extent theretofore unpaid, and shall have no other severance obligations under this Agreement. If the
Executive voluntarily terminates employment during the Employment Period, excluding a termination for Good Reason, the Company shall provide to the Executive the Accrued Obligations and the timely
payment or delivery of the Other Benefits, and shall have no other severance obligations under this Agreement. In such case, all the Accrued Obligations shall be paid to the Executive in a lump sum in
cash on the Date of Termination. 

        Section 6.    Non-exclusivity of Rights.    Nothing
in this Agreement shall prevent or limit the Executive's continuing or future participation in any plan, program, policy or practice provided by the Company or the Affiliated Companies and for which
the Executive may qualify, nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any other contract or agreement with the
Company or the affiliated companies. Amounts that are vested benefits or that the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement
with the Company or the Affiliated Companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement, except as
explicitly modified by this Agreement. Notwithstanding the foregoing, if the Executive receives payments and benefits pursuant to Section 5(a) of this Agreement, the Executive shall not be
entitled to any severance pay or benefits pursuant to any employment agreement or other agreement or arrangement the Executive has with the Company or under any severance plan, program or policy of
the Company and the Affiliated Companies. 

        Section 7.    Full Settlement.    The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim,
right or action that the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay
as incurred (within 10 days following the Company's receipt of an invoice from the Executive), to the full extent permitted by law, all legal fees and expenses that the Executive may reasonably
incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement
or any guarantee of performance thereof (including as 

8

 

a
result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus, in each case, interest on any delayed payment at the applicable federal rate provided for in
Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"); provided, however, that the Executive shall be required to repay any amounts advanced to the Executive (with
interest as calculated in the same manner described in this Section 7 above) if a court of competent jurisdiction determines that such claim, right or action was frivolous or brought by the
Executive in bad faith. 

        Section 8.    Certain Additional Payments by the Company.    

        (a)   Anything
in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any Payment would be subject to the
Excise Tax, then the Executive shall be entitled to receive an additional payment (the "Gross-Up Payment") in an amount such that, after payment by the Executive of all taxes (and any
interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon the
Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions of this
Section 8(a), if it shall be determined that the Executive is entitled to the Gross-Up Payment, but that the Parachute Value of all Payments do not exceed 110% of the Safe Harbor
Amount, then no Gross-Up Payment shall be made to the Executive and the amounts payable under this Agreement shall be reduced so that the Parachute Value of all Payments, in the aggregate,
equals the Safe Harbor Amount. The reduction of the amounts payable hereunder, if applicable, shall be made by first reducing the payments under Section 5(a)(i)(B), unless an alternative method
of reduction is elected by the Executive, and in any event shall be made in such a manner as to maximize the Value of all Payments actually made to the Executive. For purposes of reducing the Payments
to the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced. If the reduction of the amount payable under this Agreement would not result in a
reduction of the Parachute Value of all Payments to the Safe Harbor Amount, no amounts payable under the Agreement shall be reduced pursuant to this Section 8(a). The Company's obligation to
make Gross-Up Payments under this Section 8 shall not be conditioned upon the Executive's termination of employment. 

        (b)   Subject
to the provisions of Section 8(c), all determinations required to be made under this Section 8, including whether and when a Gross-Up
Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Deloitte & Touche, LLP, or such other
nationally recognized certified public accounting firm as may be designated by the Executive (the "Accounting Firm"). The Accounting Firm shall provide detailed supporting calculations both to the
Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. In the event that the
Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the Executive may appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by the
Company. Any Gross-Up Payment, as determined pursuant to this Section 8, shall be paid by the Company to the Executive within 5 days of the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (the
"Underpayment"), consistent with the calculations required to be made hereunder. In the event the Company exhausts its remedies pursuant to Section 8(c) and the Executive thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the 

9

 

Underpayment
that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. 

        (c)   The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the
Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10 business days after the Executive is informed in writing of such claim. The Executive shall
apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day
period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the
Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such claim, the Executive shall: 

        (1)   give
the Company any information reasonably requested by the Company relating to such claim, 

        (2)   take
such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the Company, 

        (3)   cooperate
with the Company in good faith in order effectively to contest such claim, and 

        (4)   permit
the Company to participate in any proceedings relating to such claim; 

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in
connection with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 8(c), the Company shall control all proceedings taken in
connection with such contest, and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect
of such claim and may, at its sole discretion, either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine;  provided, however,
that, if the Company directs the Executive to pay such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties) imposed with respect to such advance or with respect to any imputed income in connection with such advance; and provided,
further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which the Gross-Up Payment would
be payable hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 

        (d)   If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying with the requirements of Section 8(c)) promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to Section 8(c), a determination is made
that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the
expiration of 30 days after such determination, then 

10

 

such
advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment required to be
paid. 

        (e)   Notwithstanding
any other provision of this Section 8, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other
applicable taxing authority, for the benefit of the Executive, all or any portion of the Gross-Up Payment, and the Executive hereby consents to such withholding. 

        (f)    Definitions.    The following terms shall have the following meanings for purposes of this Section 8. 

        (i)    "Excise
Tax" shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 

        (ii)   The
"Net After-Tax Amount" of a Payment shall mean the Value of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1
and 4999 of the Code and applicable state and local law, determined by applying the highest marginal rates that are expected to apply to the Executive's taxable income for the taxable year in which
the Payment is made. 

        (iii)  "Parachute
Value" of a Payment shall mean the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of
such Payment that constitutes a "parachute payment" under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will
apply to such Payment. 

        (iv)  A
"Payment" shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of
the Executive, whether paid or payable pursuant to this Agreement or otherwise. 

        (v)   The
"Safe Harbor Amount" means the maximum Parachute Value of all Payments that the Executive can receive without any Payments being subject to the Excise Tax. 

        (vi)  "Value"
of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes of Section 280G of the Code, as
determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code. 

        Section 9.    Restrictive Covenants.    

        (a)    Confidential Information.    The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or data relating to the Company or the Affiliated Companies, and their respective businesses, which information, knowledge or
data shall have
been obtained by the Executive during the Executive's employment by the Company or the affiliated companies and which information, knowledge or data shall not be or become public knowledge (other than
by acts by the Executive or representatives of the Executive in violation of this Agreement). After termination of the Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those
persons designated by the Company. 

        (b)    No Solicitation or Hire.    During the Employment Period, and for a period of one
(1) year following the date of the Executive's termination of employment for any reason, the Executive shall not, directly or indirectly, for his own account or for the account of any other
individual or entity, solicit for employment or employ, or in any manner attempt to solicit for employment or employ, any individual employed by the Company or the affiliated companies during the one
(1) year period prior to the date of such termination of employment. 

11

 

        (c)    No Withholding of Amounts.    In no event shall an asserted violation of the provisions
of this Section 9 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 

        Section 10.    Successors.    (a) This Agreement is
personal to the Executive, and, without the prior written consent of the Company, shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal representatives. 

        (b)   This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. Except as provided in Section 10(c), without the
prior written consent of the Executive this Agreement shall not be assignable by the Company. 

        (c)   The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken
place. "Company" means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or
otherwise. 

        Section 11.    Miscellaneous.    (a) This Agreement
shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or
their respective successors and legal representatives. 

        (b)   All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

if
to the Executive: 

Earl
Pontius

c/o of The Titan Corporation

3033 Science Park Road

San Diego, CA 92121-1199 

if
to the Company: 

The
Titan Corporation

3033 Science Park Road

San Diego, CA 92121-1199 

Attention:
General Counsel 

or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

        (c)   The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

        (d)   The
Company may withhold from any amounts payable under this Agreement such United States federal, state or local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation. 

        (e)   The
Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the
Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason 

12

 

pursuant
to Sections 4(c)(1) through 4(c)(5), shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

        (f)    The
Executive and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Executive and the Company, the
employment of the Executive by the Company is "at will" and, subject to Section 1(a), prior to the Effective Date, the Executive's employment may be terminated by either the Executive or the
Company at any time prior to the Effective Date, in which case the Executive shall have no further rights under this Agreement. From and after the Effective Date, except as specifically provided
herein, this Agreement shall supersede any other agreement between the parties with respect to the subject matter hereof. 

        Section 12.    Termination of the Merger Agreement.    This
Agreement shall terminate upon a termination of that certain Agreement and Plan of Merger by and among L-3, Saturn VI Acquisition Corp., and the Company, dated as of June 2, 2005
(the "Merger Agreement"). If this Agreement terminates as a result of a termination of the Merger Agreement, agreements previously in effect between the Executive and the Company shall not be
superceded. 

13

 

IN
WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and, pursuant to the authorization from the Board, the Company has caused these presents to be executed in its name on its
behalf, all as of the day and year first above written. 

	 	 	    
 Earl Pontius
	

 	
 	

 	

 
	 	 	THE TITAN CORPORATION
	

 	
 	

By	

    

	

 	
 	

Name: Gene Ray

Title: President and Chief Executive Officer

14

QuickLinks

Exhibit 10.8

EXECUTIVE AGREEMENT

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