Document:

ex10-1.htm

    
      

    

    Exhibit
10.1

    
      

      

      

      AMENDED
AND RESTATED

      LINCOLN
PARK SAVINGS BANK

      

      

      DIRECTOR
RETIREMENT PLAN

      

      

      

      

      

      

      

      Lincoln
Park, New Jersey

      

      

      

      March
1, 2006

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      LINCOLN
PARK SAVINGS BANK

       

      AMENDED
AND RESTATED

      DIRECTOR
RETIREMENT PLAN

       

      This
Amended and Restated Director Retirement Plan (the “Plan”), effective as of
March 1, 2006 (the “Effective Date”), amends and restates the Lincoln Park
Director Retirement Plan, which was effective March 1, 2006 (the “Director
Retirement Plan”).  This Plan formalizes the understanding by and
between Lincoln Park Savings Bank (the “Bank”), a bank organized under the laws
of the state of New Jersey (the “Bank”), and its Directors (defined herein) who
shall be eligible to participate in this Plan.  The Bank has herein
restated the Plan with the intention that the Plan shall at all times satisfy
Section 409A of the Code (as defined herein) and the regulations
thereunder.  The provisions of the Plan shall be construed to
effectuate such intentions.

       

      W
I T N E S S E T H :

       

      WHEREAS, the Directors serve
the Bank as members of the Board of Directors (“Board”); and

       

      WHEREAS, the Bank previously
established the Directors Retirement Plan to recognize the Directors who have
provided long and faithful service to the Bank; and

       

      WHEREAS, the Bank and the
Directors intend this Plan to be considered an unfunded arrangement, maintained
primarily to provide supplemental retirement income for such Directors;
and

       

      WHEREAS, Section 409A of
the Code requires that deferred compensation arrangements comply with its terms
or be subject to current taxes and penalties; and

       

      WHEREAS, Section 409A of the
Code and the final regulations issued thereunder in April of 2007 necessitate
further changes to the Directors Retirement Plan; and

       

      WHEREAS, the Bank hereby
amends and restates the Director Retirement Plan in order to comply with Code
Section 409A.

       

      NOW, THEREFORE, in consideration of
the premises and the mutual promises herein contained, the Bank and the
Directors agree as follows:

       

      Article
I

      Definitions

       

      
        	
                Section
      1.01

              	
                Definitions.

              

      

       

      In this
document, whenever the context so indicates, the singular or the plural number
and the masculine or feminine gender shall be deemed to include the other, the
terms “he,” “his,” and “him,” shall refer to a Participant or a beneficiary of a
Participant, as the case may be, and, except as otherwise provided, or unless
the context otherwise requires, the capitalized terms shall have the following
meanings:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                (a)

              	
                “Annual
      Retirement Benefit” means an annual amount equal to Eighteen Thousand
      Dollars ($18,000), paid in monthly increments of One Thousand Five Hundred
      Dollars ($1,500.00).

              
	 	 
	
                (b)

              	
                “Bank”
      means Lincoln Park Savings Bank, Lincoln Park, New
  Jersey.

              
	 	 
	
                (c)

              	
                “Beneficiary”
      means the person designated by the Director, on a form provided by the
      Plan Administrator and filed with the Bank, attached hereto as Exhibit B,
      to receive the Director’s Annual Retirement Benefit or the remaining
      payments of the Annual Retirement Benefit if the Director dies before
      receiving payments for ten (10) years (any payments to the Beneficiary
      shall be deemed to be a “Survivor’s Benefit”).  If no
      Beneficiary is named, the Beneficiary shall be the Director’s surviving
      spouse, or if none, the Director’s children, in equal shares, per
      stirpes.  If a Director dies without a surviving spouse or
      children, and has not designated a Beneficiary, the Beneficiary shall be
      the Director’s estate.

              
	 	 
	
                (d)

              	
                “Benefit
      Eligibility Date” shall be the date on which a Director is entitled to
      receive a benefit under the Plan.  Unless otherwise set forth in
      another Section of this Plan, a Director’s “Benefit Eligibility Date”
      shall occur on the 1st day of the month coincident with or next following
      the earliest of the following events to occur: (i) the later of the month
      in which the Director retires or attains the Director’s Eligible
      Retirement Age (provided, however, that no Director shall have a Benefit
      Eligibility Date due to attainment of the Director’s Eligible Retirement
      Age prior to the third anniversary of the Plan’s Effective Date); (ii) the
      month in which a Disability determination is made; (iii) the later of the
      month in which the Director dies or the Bank is notified of the Director’s
      death; or (iv) the month in which the Director’s service is terminated
      (either voluntarily or involuntarily) following a Change in
      Control.

              
	 	 
	
                (e)

              	
                “Board
      of Directors” means the Board of Directors of the Bank.

              
	 	 
	
                (f)

              	
                “Change
      in Control” of the Bank or the Company shall mean (i) a change in
      ownership of the Bank or the Company (as defined herein) under paragraph
      (I) below, or (ii) a change in effective control of the Bank or the
      Company under paragraph (II) below, or (iii) a change in the ownership of
      a substantial portion of the assets of the Bank or the Company under
      paragraph (III) below:

              

      

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      
        	 
      	
                (I)

              	
                Change in the ownership of the
      Bank or the Company.  A change in the ownership of the
      Bank or the Company shall occur on the date that any one person, or more
      than one person acting as a group (as defined in Final Treasury Regulation
      Section 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the
      corporation that, together with stock held by such person or group,
      constitutes more than 50 percent of the total fair market value or total
      voting power of the stock of such corporation.

              
	 	 	 
	 
      	
                (II)

              	
                Change in the effective control
      of the Bank or the Company.  A change in the effective
      control of the Bank or the Company shall occur on the date that either
      (i) any one person, or more than one person acting as a group (as
      defined in Final Treasury Regulation Section 1.409A-3(i)(5)(v)(D)),
      acquires (or has acquired during the 12-month period ending on the date of
      the most recent acquisition by such person or persons) ownership of stock
      of the corporation possessing 30 percent or more of the total voting power
      of the stock of such corporation; or (ii) a majority of members of the
      corporation’s board of Directors is replaced during any 12-month period by
      Directors whose appointment or election is not endorsed by a majority of
      the members of the corporation’s board of Directors prior to the date of
      the appointment or election, provided that this sub-section (ii) is
      inapplicable where a majority shareholder of the Bank or the Company is
      another corporation.

              
	 	 	 
	 
      	
                (III)

              	
                Change in the ownership of a
      substantial portion of the Bank’s or the Company’s
      assets.  A change in the ownership of a substantial
      portion of the Bank’s or the Company’s assets shall occur on the date that
      any one person, or more than one person acting as a group (as defined in
      Final Treasury Regulation Section 1.409A-3(i)(v)(C)), acquires (or has
      acquired during the 12-month period ending on the date of the most recent
      acquisition by such person or persons) assets from the corporation that
      have a total gross fair market value equal to or more than 40% of the
      total gross fair market value of (i) all of the assets of the Bank, or
      (ii) the value of the assets being disposed of, either of which is
      determined without regard to any liabilities associated with such
      assets.

              
	 	 	 
	 
      	
                (IV)

              	
                Notwithstanding
      anything herein to the contrary, the reorganization of the Bank as the
      wholly-owned subsidiary of a holding company in a standard conversion
      shall not be deemed a Change in Control.  For all purposes
      hereunder, the definition of Change in Control shall be construed to be
      consistent with the requirements of Final Treasury Regulation Section
      1.409A-3(i), except to the extent that such proposed regulations are
      superseded by subsequent guidance.

              

      

       

      
        	
                (g)

              	
                “Code”
      means the Internal Revenue Code of 1986, as amended from time to time, and
      the rules and regulations promulgated thereunder.

              
	 	 
	
                (h)

              	
                “Company”
      means Lincoln Park Bancorp, Inc.

              
	 	 
	
                (i)

              	
                “Director”
      means a member of the Board of Directors serving on the Board of
      Directors.

              
	 	 
	
                (j)

              	
                “Disability”
      means any case in which a Director: (i) is unable to engage in any
      substantial gainful activity by reason of any medically determinable
      physical or mental impairment which can be expected to result in death or
      can be expected to last for a continuous period of not less than 12
      months,(ii) is, by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or can be expected to
      last for a continuous period of not less than 12 months, receiving income
      replacement benefits for a period of not less than three months under an
      accident and health plan covering employees or non-employee directors of
      the Bank; or (iii) is determined to be totally disabled by the Social
      Security Administration.

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
                (k)

              	
                “Disability
      Benefit” means the monthly benefit payable to the Director following a
      determination of the Director’s Disability.

              
	 	 
	
                (l)

              	
                “Discount
      Rate” shall mean 5.75%, or such other rate as determined from time to time
      by the Board of Directors.

              
	 	 
	
                (m)

              	
                “Eligible
      Retirement Age” shall mean the age of a Director when he or she has both
      attained age 65 and has completed ten (10) Years of Service on the
      Board.  For purposes of determining if a Director has attained
      Eligible Retirement Age, a Director’s Years of Service prior to the
      adoption of the Plan shall be credited towards the Director’s ten (10)
      Years of Service.

              
	 	 
	
                (n)

              	
                “Participant”
      means a Director who satisfies the eligibility requirements set forth in
      Section 2.01 (a) of the Plan.

              
	 	 
	
                (o)

              	
                “Payout
      Period” means One Hundred Twenty (120)  consecutive
      months.

              
	 	 
	
                (p)

              	
                “Plan”
      means this Lincoln Park Savings Bank Amended and Restated Director
      Retirement Plan.

              
	 	 
	
                (q)

              	
                “Survivor
      Benefit” means an annual amount payable to the Beneficiary in monthly
      installments throughout the Payout Period.  The Survivor’s
      Benefit shall be equal to the Annual Retirement Benefit, calculated as if
      the Director had survived and remained in the service of the Bank until
      reaching the Director’s Eligible Retirement Age.

              
	 	 
	
                (r)

              	
                “Termination
      of Service” or “Terminates Service” means “separation from service” (as
      such term is defined under Code Section 409A).

              
	 	 
	
                (s)

              	
                “Year
      of Service” means a consecutive 12-month period of service on the Board of
      Directors.  The consecutive 12 month period of service shall be
      based on the calendar year or the fiscal year of the Bank, if different,
      in the sole discretion of the Plan
  Administrator.

              

      

       

      Article
II

      Eligibility
and Benefits

       

      
        	
                Section
      2.01

              	
                Eligibility.

              

      

       

      A
Director shall be eligible to receive the Annual Retirement Benefit upon
attainment of the Director’s Eligible Retirement Age.  In addition, a
Director will be eligible for a Disability Benefit in accordance with Section
2.03, or the Director’s Beneficiary shall be eligible for a Survivor Benefit, in
accordance with Section 2.04, if the director suffers a Disability or dies after
the adoption of the Plan, without consideration to the Director’s Years of
Service.  Service with the board of directors of any entity other than
the Bank shall not be credited for any purpose under this Plan.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      
        	
                Section
      2.02

              	
                Retirement of
      Benefit.

              

      

       

      
        	
                (a)

              	
                A
      Director who Terminates Service after the Director’s Eligible Retirement
      Age shall be fully vested in his or her Annual Retirement Benefit, payable
      in accordance with Section 2.05(a) herein.

              
	 	 
	
                (b)

              	
                A
      Director who Terminates Service after completing 10 or more Years of
      Service but before age 65 (other than due to death or Disability or a
      Change in Control), shall be entitled to the Annual Retirement Benefit
      which will become payable on the Director’s Benefit Eligibility Date
      following the Director’s Eligible Retirement Age.  A Director
      who terminates service before satisfying the requirement of having 10
      Years of Service (other than due to death, Disability or a Change in
      Control), is not entitled to a benefit hereunder.

              
	 	 
	
                (c)

              	
                A
      Director who is terminated for just cause pursuant to Section 5.04 shall
      forfeit all benefits hereunder.

              

      

       

      
        	
                Section
      2.03

              	
                Disability
      Benefit

              

      

       

      Notwithstanding
any other provision hereof, a Director who has not attained the Director’s
Eligible Retirement Age shall be entitled to receive the Disability Benefit
hereunder, in any case in which it is determined that the Director has incurred
a Disability.  If the Director’s service is terminated due to
Disability, the Director’s Benefit Eligibility Date shall be the first day of
the month following the month in which the Disability determination is
made.  The Director shall receive the Disability Benefit in lieu of
any benefit available under Section 2.02.  In the event the Director
dies while receiving payments pursuant to this Section, but prior to the
completion of all payments due and owing hereunder, the Bank shall pay to the
Director’s Beneficiary a continuation of the monthly installments for the
remainder of the Payout Period.

      

      
        	
                Section
      2.04

              	
                Death
      Benefit

              

      

       

      If the
Director dies while serving on the Board, the Director’s Beneficiary shall be
entitled to a Survivor Benefit beginning on the Benefit Eligibility Date and
payable over the Payout Period.  If a former Director dies after the
Director becomes eligible for an Annual Retirement Benefit but before the Annual
Retirement Benefit commences, the Director’s Beneficiary shall be entitled to a
Survivor Benefit payable commencing on the Benefit Eligibility Date over the
Payout Period.  In any case where a Director dies after commencement
of the Annual Retirement Benefit and before the completion of such payments
thereunder, the Director’s Beneficiary shall be entitled to the continuation of
such payments for the remainder of the Payout Period.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      
        	
                Section
      2.05

              	
                Time and Manner of
      Payment.

              

      

       

      
        	
                (a)

              	
                The
      Annual Retirement Benefit, the Disability Benefit and/or the Survivor
      Benefit are each payable commencing on the Benefit Eligibility Date and
      shall be payable over the Payout Period.  The payment of any one
      of these benefits to an eligible Director or Beneficiary shall fully
      satisfy the Bank’s obligation to such Director
  hereunder.

              
	 	 
	
                (b)

              	
                In
      the following circumstances and to the following extent, the Plan
      administrator may, in its sole discretion, authorize the acceleration of
      the payment of benefits under the
Plan:

              

      

       

      
        	 
      	
                (i)

              	
                In
      the event that a Participant has suffered an unforeseeable emergency, the
      Plan administrator may, in its sole discretion upon the Participant’s
      request, and to the extent permitted under Section 409A of the Code, allow
      such Participant to obtain a lump sum payment of an amount not to exceed
      the lesser of the present value of the then remaining benefits otherwise
      payable to the Participant and the amount necessary to alleviate the
      unforeseeable emergency.  Such lump sum payment shall be in lieu
      of the equivalent benefits that would otherwise be payable to a
      Participant.  For these purposes an “unforeseeable emergency”
      means a severe financial hardship to the Participant resulting from an
      illness or accident of the Participant, the Participant’s spouse, or a
      dependent (as defined in Code Section 152(a)) of the Participant, loss of
      the Participant’s property due to casualty, or other similar extraordinary
      and unforeseeable circumstances arising as a result of events beyond the
      control of the Participant.  The circumstances that shall
      constitute an unforeseeable emergency will depend upon the facts of each
      case and shall be determined in accordance with Code Section
      409A.   Amounts allowed as a hardship distribution may not
      exceed the amounts necessary to satisfy such emergency plus amounts
      necessary to pay taxes reasonably anticipated as a result of the
      distribution, after taking into account the extent to which such hardship
      is or may be relieved through reimbursement or compensation by insurance
      or otherwise, or by liquidation of the Participant’s assets (to the extent
      the liquidation of such assets would not itself cause severe financial
      hardship).

              
	 
      	 
      	 
      
	 
      	
                (ii)

              	
                To
      the extent required to comply with the terms of a domestic relations order
      (within the meaning of Section 414(p) of the Code) directed to and served
      upon the Plan, the Plan administrator may direct the payment of all or any
      portion of the benefit to which a Participant is entitled to at any time
      or in accordance with any benefit payment schedule set forth in such
      order.  Such lump sum payment shall be in lieu of the benefits
      that would otherwise be payable to a Participant.

              
	 
      	 
      	 
      
	 
      	
                (iii)

              	
                To
      the extent necessary to effect compliance with a certificate of
      divestiture (within the meaning of Section 1043(b)(2) of the Code), the
      Plan administrator may permit a lump sum payment in an amount up to the
      present value of the then remaining benefits otherwise payable to the
      Participant under this Plan.  Such lump sum payment shall be in
      lieu of the benefits that would otherwise be payable to a
      Participant.

              

      

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      

      Article
III

      Change
in Control

      

      
        	
                3.01

              	
                Benefits Following a
      Change In Control.

              

      

       

      Notwithstanding
any other provision in this Plan to the contrary, in the event of a Change in
Control, each Director serving on the Board of Directors on the date of the
Change in Control will be credited with Years of Service, as if the Director had
remained a member of the Board of Directors until age 65, with at least 10 Years
of Service.  New Participants shall have the right within thirty (30)
days after becoming a Participant to elect, in the form attached hereto as
Exhibit A, to receive the Annual Retirement Benefit commencing on the effective
date of the Change in Control or at their Eligible Retirement Age (for these
purposes, age 65), if later.  In addition, the new Participants may
elect to receive the Annual Retirement Benefit payable in a lump sum rather than
in installments over the  Payout Period.  If the Director
elects to receive the Annual Retirement Benefit at the time of the Change in
Control rather than at their Eligible Retirement Age, the lump sum value will be
calculated by applying the Discount Rate to the Annual Retirement Benefit, and
for these purposes, treating the Participants as if the they are age 65 at the
effective date of the Change in Control.  In the event no election is
made by the new Participants, the new Participants shall be paid the lump sum
value of the Annual Retirement Benefit commencing within ten (10) business days
following the effective date of the Change in
Control.  Notwithstanding the foregoing, current Participants may
elect to change the time and form of payment of his or her benefits following a
Change in Control to another permissible time and form (e.g., from lump sum to
installment, or vice versa) by filing with the Bank a Transition Year Election
Form for Current Participants, attached hereto as Exhibit C, provided that such
election is made by December 31, 2008.

       

      Article
IV

      Administration

       

      
        	
                Section
      4.01

              	
                Administration

              

      

       

      The
administration of the Plan, the exclusive power to interpret it, and the
responsibility for carrying out its provisions are vested in the Board of
Directors of the Bank or its designee. For these purposes, the Board of
Directors of the Bank is the “Administrator.”  The Board of Directors
or its designee shall have the authority to resolve any question under the Plan.
The determination of the Board of Directors or its designee as to the
interpretation of the Plan or any disputed question shall be conclusive and
final to the extent permitted by applicable law.  Claims for benefits
under the Plan shall be submitted in writing to the Board of Directors or to an
individual designated by the Bank for this purpose.

       

      
        	
                Section
      4.02

              	
                Claims Procedures and
      Arbitration.

              

      

      

      In the
event that benefits under this Plan are not paid to the Director (or to his
Beneficiary in the case of the Director’s death) and such claimants feel they
are entitled to receive such benefits, then a written claim must be made to the
Administrator within sixty (60) days from the date payments are refused. The
Administrator shall review the written claim and, if the claim is denied, in
whole or in part, they shall provide in writing, within thirty (30) days of
receipt of such claim, their specific reasons for such denial, reference to the
provisions of this Plan upon which the denial is based, and any additional
material or information necessary to perfect the claim. Such writing by the Bank
and its Board of Directors shall further indicate the additional steps which
must be undertaken by claimants if an additional review of the claim denial is
desired.

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      If
claimants desire a second review, they shall notify the Administrator in writing
within thirty (30) days of the first claim denial. Claimants may review this
Plan or any documents relating thereto and submit any issues and comments, in
writing, they may feel appropriate. In its sole discretion, the Administrator
shall then review the second claim and provide a written decision within thirty
(30) days of receipt of such claim. This decision shall state the specific
reasons for the decision and shall include reference to specific provisions of
this Plan upon which the decision is based.

      

      If claimants continue to dispute the
benefit denial based upon completed performance of this Plan or the meaning and
effect of the terms and conditions thereof, it shall be settled by arbitration
administered by the American Arbitration Association under its Commercial
Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may
be entered in any court having jurisdiction thereof

       

      Article
V

      General
Provisions

       

      
        	
                Section
      5.01

              	
                No
      Funding.

              

      

       

      
        	
                (a)

              	
                All
      amounts payable in accordance with the Plan shall constitute a general
      unsecured obligation of the Bank. Such amounts, as well as any
      administrative costs relating to the Plan, shall be paid out of the
      general assets of the Bank.

              
	 	 
	
                (b)

              	
                The
      Bank may, for administrative reasons, establish a grantor trust with an
      independent trustee for the benefit of Participants in the Plan. The Bank
      shall be treated as “grantor” of said trust for purposes of Section 677 of
      the Code.  Said grantor trust shall conform to the requirements
      of Internal Revenue Service Rev. Proc. 92-64.  The assets, if
      any, placed in said trust shall be held separate and apart from other Bank
      funds and shall be used exclusively for the purposes set forth in the Plan
      and the applicable trust agreement.  The agreement of said trust
      shall provide that its assets may be used upon the insolvency or
      bankruptcy of the Bank to satisfy claims of the Bank’s general creditors
      and that the rights of such general creditors are enforceable by them
      under federal and state law.  In the event that a Director has
      elected to receive the Annual Retirement Benefit in a form other than a
      lump sum in connection with the occurrence of a Change in Control of the
      Bank or the Company, the Bank shall establish a grantor trust and shall
      transfer assets to said grantor trust prior to the effective date of the
      Change in Control in an amount sufficient to ensure the payment of all
      amounts due and owing under the Plan following the Change in
      Control.

              

      

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      
        	
                Section
      5.02

              	
                Amendment of the
      Plan.

              

      

       

      The Bank
reserves the right to modify or amend the Plan, in whole or in part, at any
time, and from time to time. However, no modification or amendment shall
adversely affect the right of any Participant hereunder.

       

      
        	
                Section
      5.03

              	
                Non-alienation.

              

      

       

      Subject
to any applicable law, no benefit under the Plan shall be subject in any manner
to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any attempt to do so shall be void.

       

      
        	
                Section
      5.04

              	
                Forfeiture for Just
      Cause.

              

      

       

      In the
event that the Director’s service as a Director is involuntarily terminated for
reason of serious misconduct, dishonesty or fraud on the part of such
Participant in his relationship with the Bank, all benefits that would otherwise
be payable to him under the Plan shall be forfeited.

       

      
        	
                Section
      5.05

              	
                Construction.

              

      

       

      
        	
                (a)

              	
                The
      Plan shall be construed, regulated and enforced under the laws of the
      State of New Jersey, without giving regard to any conflicts of laws
      principles thereof.

              
	 	 
	
                (b)

              	
                The
      masculine pronoun shall mean the feminine wherever appropriate, and the
      singular shall include the plural.

              
	 	 
	
                (c)

              	
                The
      illegality or unenforceability of any particular provision of this
      document shall not affect the other provisions and the Plan shall be
      construed in all respects as if such invalid provision were
      omitted.

              
	 	 
	
                (d)

              	
                The
      headings and subheadings in the Plan have been inserted for convenience of
      reference only, and are to be ignored in any construction of the
      provisions thereof.

              

      

       

      
        	
                Section
      5.06

              	
                Effective
      Date.

              

      

       

      The Plan
is adopted at a meeting of the Board of Directors held on _____________,
however, the Effective Date of the Plan shall be March 1, 2006.

       

      
        	
                Section
      5.07

              	
                Late
      Payments.

              

      

      

      Any
payment due and payable under this Plan that is not made within thirty (30) days
after the date on which it is first due and payable shall continue to bear
interest or other earnings from the date it is first due through the date of
actual payment unless the delay in payment results solely from an act or failure
to act on the part of the payment recipient.  Where a delay in excess
of thirty (30) days has occurred in the commencement of any series of payments,
the first payment made shall also include any previous installments that are
due.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      

      
        	
                Section
      5.08

              	
                Required Regulatory
      Provisions.

              

      

      

      Notwithstanding anything herein
contained to the contrary, any payments to a Director by the Bank under this
Plan, are subject to and conditioned upon their compliance with Section 18(k) of
the Federal Deposit Insurance Act, 12 U.S.C. Section 1828(k), and the
regulations promulgated thereunder in 12 C.F.R. Part 359.

      

      
        	
                Section
      5.09

              	
                Construction and
      Severability.

              

      

      

      This Plan
is adopted following the enactment of Code Section 409A and is intended to be
construed consistent with the requirements of that Section, the Treasury
regulations and other guidance issued thereunder.  If any provision of
the Plan shall be determined to be inconsistent therewith for any reason, then
the Plan shall be construed, to the maximum extent possible, to give effect to
such provision in a manner that is consistent with Code Section 409A, and if
such construction is not possible, as if such provision had never been
included.  In the event that any of the provisions of this Plan or
portion thereof are held to be inoperative or invalid by any court of competent
jurisdiction, then: (1) insofar as is reasonable, effect will be given to the
intent manifested in the provisions held to be invalid or inoperative, and (2)
the invalidity and enforceability of the remaining provisions will not be
affected thereby.  If required by Code Section 409A, a Director’s
Termination of Service on the Board shall be deemed to be defined in accordance
with the definition of “separation from service” under Code Section
409A.

      

      
        	
                Section
      5.10

              	
                Payment of Code
      Section 409A Taxes.

              

      

      

      This Plan shall permit the acceleration
of the time to pay any taxes that may become due at any time that the
arrangement fails to meet the requirements of Code Section 409A and the
regulations and other guidance promulgated thereunder.  Such payments
shall not exceed the amount required to be included in income as the result of
the failure to comply with the requirements of Code Section 409A.

      

      
        	
                Section
      5.11

              	
                Termination of the
      Plan.

              

      

      

       Under
no circumstances may the Plan permit the acceleration of the time or form of any
payment under the Plan prior to the payment events specified herein, except as
provided in this Section 5.11 of the Plan.  The Bank may, in its
discretion, elect to terminate the Plan in any of the following three
circumstances and accelerate the payment of the entire unpaid balance of the
Director’s accrued benefits as of the date of such payment in accordance with
Section 409A of the Code:

      

      (i)           the
Plan is irrevocably terminated within the 30 days preceding a Change in Control
and (1) all arrangements sponsored by the Bank that would be aggregated with the
Plan under Treasury Regulation §1.409A-1(c)(2) are terminated, and (2) the
Director and all participants under the other aggregated arrangements receive
all of their benefits under the terminated arrangements within 12 months of the
date the Bank irrevocably takes all necessary action to terminate the Plan and
the other aggregated arrangements;

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (ii)           the
Plan is irrevocably terminated at a time that is not proximate to a downturn in
the financial health of the Bank and (1) all arrangements sponsored by the Bank
that would be aggregated with the Plan under Treasury Regulation 1.409A-1(c) if
the Director participated in such arrangements are terminated, (2) no payments
are made within 12 months of the date the Bank takes all necessary action to
irrevocably terminate the arrangements, other than payments that would be
payable under the terms of the arrangements if the termination had not occurred,
(3) all payments are made within 24 months of the date the Bank takes all
necessary action to irrevocably terminate the arrangements, and (4) the Bank
does not adopt a new arrangement that would be aggregated with the Plan under
Treasury Regulation 1.409A-1(c) if a Director participated in both
arrangements, at any time within three years following the date the Bank takes
all necessary action to irrevocably terminate the Plan; or

      

      (iii)           the
Plan is terminated within 12 months of a corporate dissolution taxed under
Section 331 of the Code, or with the approval of a bankruptcy court pursuant to
11 U.S.C. §503(b)(1)(A), provided that the amounts deferred by a Director
under the Plan are included in the Director’s gross income in the later of (1)
the calendar year in which the termination of the Plan occurs, or (2) the first
calendar year in which the payment is administratively practicable.

      

      

       

      [Signature
Page Follows]

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the Bank,
acting through its duly authorized officer, has executed this Director
Retirement Plan, effective as of the date first written above.

      

      

      
        	
                Attest:

              	 	
                LINCOLN
      PARK SAVINGS

              	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	 
      	 
      	 
      
	 
      	 	
                By:

              	 
      	 
      
	 
      	 	 
      	
                Authorized
      Officer

              	 
      

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      Exhibit
A

      

      LINCOLN
PARK SAVINGS BANK

      AMENDED
AND RESTATED DIRECTOR RETIREMENT PLAN

      

      CHANGE
IN CONTROL ELECTION FORM FOR NEW PARTICIPANTS

      

      

      According
to the terms of Section 3.01 of this Plan, I understand that in the event of a
Change in Control, I may elect to receive my Annual Retirement Benefit either at
the time of the Change in Control or at age 65, if later.  In
addition, I may also elect to receive my Annual Retirement Benefit either in a
lump sum or in installments over ten (10) years.  I understand that if
I fail to make an election, in the event of a Change in Control, I will receive
the lump sum equivalent of my Annual Retirement Benefit on the effective date of
the Change in Control.

      

      In the
event of a Change in Control of the Bank, I hereby elect to receive my Annual
Retirement Benefit at the following time (check one):

      

      
        	 
      	
                 

              	 	
                on
      the effective date of the Change in Control

              
	 
      	 
      	 	 
      
	 
      	
                 

              	 	
                at
      age 65 (or if I am age 65 or greater at the time of a Change in Control,
      on the effective date of the Change in
Control).

              

      

      

      In the
event of a Change in Control of the Bank, I hereby elect to receive my Annual
Retirement Benefit in the following form (check one):

      

      
        	 
      	
                 

              	 	
                in
      a single lump sum payment

              
	 
      	 
      	 	 
      
	 
      	
                 

              	 	
                in
      equal monthly installments over the Payout
  Period.

              

      

      

       

      
        	
                Signature

              	
                 

              	 
      
	 
      	 
      	 
      
	
                Date

              	
                 

              	 
      

      

      

      

      Received
by the Bank this ______ day of _________________, 20___.

      

      
        	
                By

              	
                 

              	 
      
	
                Title

              	
                 

              	 
      

      

      

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      Exhibit
B

       

       

      LINCOLN
PARK SAVINGS BANK

      AMENDED
AND RESTATED DIRECTOR RETIREMENT PLAN

      

      BENEFICIARY
DESIGNATION

      

       

      The
Director, under the terms of the Amended and Restated Director Retirement Plan
executed by Lincoln Park Savings Bank, of Lincoln Park, New Jersey, dated
_____________, 2008, hereby designates the following Beneficiary(ies) to receive
any guaranteed payments or death benefits under such Plan, following his
death:

       

      PRIMARY
BENEFICIARY:

       

      
        	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              
	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              
	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              

      

       

      SECONDARY
BENEFICIARY (if all Primary Beneficiaries pre-decease the
Director):

      

      
        	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              
	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              
	
                Name:

              	
                 

              	 	
                %
      of Benefit:

              	
                 

              

      

       

       

      This
Beneficiary Designation hereby revokes any prior Beneficiary Designation which
may have been in effect and this Beneficiary Designation is
revocable.

       

       

      
        	
                Date:

              	
                 

              	 
      

      

      

       

      
        	 
      	 	 
      
	
                Witness

              	 
      	 	
                Director

              	 
      

      

      

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      Exhibit
C

      

      LINCOLN
PARK SAVINGS BANK

      AMENDED
AND RESTATED DIRECTOR RETIREMENT PLAN

      

      TRANSITION
YEAR CHANGE IN CONTROL ELECTION FORM FOR CURRENT PARTICIPANTS

      

      Instructions:  If
you are a participant in the Amended and Restated Director Retirement Plan (the
“Plan”), and you previously elected the time and form of payment of your Annual
Retirement Benefit (e.g., lump sum, monthly installments) upon the occurrence of
a Change in Control, you have a limited period of time to use this Transition
Year Election Form to elect to change your previous distribution
option.  For example, if you previously elected to receive your Annual
Retirement Benefit in monthly installments on the effective date of the Change
in Control, you may use this Transition Year Election Form to change your form
of benefit to a lump sum distribution.

      

      Due
to IRS rules, individuals who participate in the Plan during 2008 must complete
this form no later than December 31, 2008.  You may not use this form to
change your distribution elections with respect to payments that are scheduled
to be made to you in 2008, or otherwise to cause payments to be made to you in
2008.

      

      
        	
                Print
    Name:

              	 
      	 
      

      

      

      I am a
participant in the Plan  The Plan provides that in the event of a
Change in Control, I may elect to receive my Annual Retirement Benefit either at
the time of the Change in Control, or at age 65, if later.  I
previously filed an election with the Bank with respect to the time and form of
payment of Annual Retirement Benefit upon the occurrence of a Change in Control,
and I now wish to change my distribution options by completing this Transition
Year Election Form.  I understand that I may not make an election to
cause payments to be made in 2008, or to change the form of payment of benefits
that are scheduled to begin in 2008.

      

      In the
event of a Change in Control of the Bank, I hereby elect to receive my Annual
Retirement Benefit at the following time (check one):

      

      
        	 
      	
                 

              	 	
                on
      the effective date of the Change in Control

              
	 
      	 
      	 	 
      
	 
      	
                 

              	 	
                at
      age 65 (or if I am age 65 or greater at the time of a Change in Control,
      on the effective date of the Change in
Control).

              

      

      

      In the
event of a Change in Control of the Bank, I hereby elect to receive my Annual
Retirement Benefit in the following form (check one):

      

      
        	 
      	
                 

              	 	
                in
      a lump sum

              
	 
      	 
      	 	 
      
	 
      	
                 

              	 	
                in
      equal monthly installments over the Payout
  Period.

              

      

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      

      
        	
                Signature

              	
                 

              	 
      
	 
      	 
      	 
      
	
                Date

              	
                 

              	 
      

      

      

      

      Received
by the Bank this ______ day of _________________, 20___.

      

      
        	
                By

              	
                 

              	 
      
	
                Title

              	
                 

              	 
      

      

       

       

      16Exhibit 10.21

 Exhibit 10.21 
 TELOS CORPORATION 
 2008 OMNIBUS LONG-TERM INCENTIVE PLAN 
 Telos Corporation, a Maryland corporation (the “Company”), sets forth herein the terms of its 2008 Omnibus Long-Term Incentive Plan (the
“Plan”), as follows: 
 1. PURPOSE. The Plan is intended to enhance the Company’s and its Subsidiaries’ ability to attract and
retain highly qualified directors, officers, key employees and other persons and to motivate such persons to serve the Company and its Subsidiaries and to improve the business results and earnings of the Company, by providing to such persons an
opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the grant of Share options, Share appreciation rights, restricted Shares, restricted Share
units, unrestricted Shares and dividend equivalent rights. Any of these awards may, but need not, be made as performance incentives to reward attainment of performance goals in accordance with the terms hereof. Share options granted under the Plan
may be incentive stock options or non-qualified options, as provided herein. 
 2. DEFINITIONS. For purposes of interpreting the Plan and related
documents (including Award Agreements), the following definitions shall apply: 
 2.1 “Award” means a grant of an Option, Share Appreciation
Right, Restricted Shares, Restricted Share Units, Unrestricted Shares or Dividend Equivalent Rights under the Plan. 
 2.2 “Award Agreement”
means the written agreement between the Company and a Participant that evidences and sets out the terms and conditions of an Award. 
 2.3 “Benefit
Arrangement” shall have the meaning set forth in Section 15 hereof. 
 2.4 “Board” means the Board of Directors of the
Company. 
 2.5 “Cause” means, as determined by the Board and unless otherwise provided in an applicable agreement with the Company or a
Subsidiary,(i) commission by a Participant of a felony or crime of moral turpitude; (ii) conduct in the performance of a Participant’s duties which is illegal, dishonest, fraudulent or disloyal; (iii) the breach of any fiduciary duty
the Participant owes to the Company; or (iv) gross neglect of duty or poor performance which is not cured by the Participant to the reasonable satisfaction of the Company within 30 days of Participant’s receipt of written notice from the
Company advising Participant of said gross neglect or poor performance. 
 2.6 “Change in Control” means an occasion upon which (i) any
“person” (as such term is used in Section 13(d) and 14(d) of the Exchange Act) other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation controlled by the Company, is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities;
or (ii) during any period of twelve (12) consecutive months (not including any period prior to the adoption of this Plan), individuals who at the beginning of such period constitute the Board and any new director 

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 1 of 20 

 
(other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in clauses (i) or
(iii) of this Paragraph) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (iii) any of (a) the Company consummates a merger, consolidation, reorganization,
recapitalization or statutory share exchange (a “Business Combination”), other than a Business Combination which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the securities of the Company or such surviving entity outstanding immediately after such Business Combination,
(b) the Company’s shareholders approve a plan of complete liquidation of the Company, or (c) the Company completes the sale or other disposition of all or substantially all of its assets in one or a series of transactions. 

2.7 “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. 
 2.8 “Committee” means the Company’s Management Development and Compensation Committee. 
 2.9 “Company” means Telos Corporation. 
 2.10
“Corporate Transaction” means (i) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity,
(ii) a sale of substantially all of the assets of the Company to another person or entity which does not constitute a “related person” to the Company, as such term is defined in the Treasury Regulations issued in connection with
Section 409A of the Code, or (iii) any transaction (including without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are shareholders or
affiliates immediately prior to the transaction) owning more than 50% of the combined voting power of all classes of share of the Company. 
 2.11
“Covered Employee” means a Participant who is a Covered Employee within the meaning of Section 162(m)(3) of the Code. 
 2.12
“Dividend Equivalent Right” means a right, granted to a Participant under Section 13 hereof, to receive cash, Shares, other Awards or other property equal in value to dividends paid with respect to a specified number of
Shares, or other periodic payments. 
 2.13 “Effective Date” means February 5, 2008, the date the Plan is approved by the Board.

 2.14 “Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 
 2.15 “Fair Market Value” means the value of a Share, determined as follows: if on the Grant Date or other determination date the Shares are listed on an
established national or regional share exchange, is admitted to quotation on The Nasdaq Stock Market, Inc. or is publicly traded on an established securities market, the Fair Market Value of a Share shall be the closing price of the Shares on such
exchange or in such market (if there is more than one such exchange or market 

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 2 of 20 

 
the Board shall determine the appropriate exchange or market) on the Grant Date or such other determination date (or if there is no such reported closing
price, the Fair Market Value shall be the mean between the highest bid and lowest asked prices or between the high and low sale prices on such trading day) or, if no sale of Shares is reported for such trading day, on the next preceding day on which
any sale shall have been reported. If the Shares are not listed on such an exchange, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Shares as determined by the Board in good faith, including the use by
the Board, as appropriate, of an outside consultant or adviser, and taking into account, without limitation, Section 409A of the Code. 
 2.16
“Family Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law,
or sister-in-law, including adoptive relationships, of the Participant, any person sharing the Participant’s household (other than a tenant or employee), a Company in which any one or more of these persons have more than fifty percent of the
beneficial interest, a foundation in which any one or more of these persons (or the Participant) control the management of assets, and any other entity in which one or more of these persons (or the Participant) own more than fifty percent of the
voting interests. 
 2.17 “Grant Date” means the date on which the Board or the Committee, as the case may be, approves an Award or such
later date as may be specified by the Committee in situations where the Committee chooses to request that the Board ratify the grant of an Award. 
 2.18
“Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted tax statute, as amended from time to time.

 2.19 “Non-Qualified Option” means an Option that is not an Incentive Stock Option. 
 2.20 “Option” means an option to purchase Shares pursuant to the Plan. 
 2.21 “Option Price” means the exercise price for each Share subject to an Option. 
 2.22 “Other
Agreement” shall have the meaning set forth in Section 15 hereof. 
 2.23 “Outside Director” means a member of the
Board who is not an officer or employee of the Company. 
 2.24 “Participant” means a person who receives or holds an Award under the Plan.

 2.25 “Performance Award” means an Award made subject to the attainment of performance goals (as described in Section 14) over
a performance period of up to ten (10) years. 
 2.26 “Plan” means this Telos Maryland 2008 Omnibus Long-Term Incentive Plan.

 2.27 “Purchase Price” means the purchase price, if any, for each Share pursuant to a grant of Restricted Shares or Unrestricted Shares.

 2.28 “Restricted Share Unit” means a bookkeeping entry representing the equivalent of a Share awarded to a Participant pursuant to
Section 10 hereof. 
  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 3 of 20 

 2.29 “Restricted Shares” means Shares awarded to a Participant pursuant to Section 10
hereof. 
 2.30 “SAR Exercise Price” means the per share exercise price of an SAR granted to a Participant under Section 9
hereof. 
 2.31 “Securities Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 
 2.32 “Service” means service as a Service Provider to the Company or a Subsidiary. Unless otherwise stated in the applicable Award Agreement, a
Participant’s change in position or duties shall not result in interrupted or terminated Service, so long as such Participant continues to be a Service Provider to the Company or a Subsidiary. Subject to the preceding sentence, whether a
termination of Service shall have occurred for purposes of the Plan shall be determined by the Board or the Committee, as the case may be, which determination shall be final, binding and conclusive. 
 2.33 “Service Provider” means an employee, officer or director of the Company or a Subsidiary, or a consultant or adviser currently providing services
to the Company or a Subsidiary. 
 2.34 “Share” or “Shares” means shares of Common Stock of the Company. 
 2.35 “Share Appreciation Right” or “SAR” means a right granted to a Participant under Section 9 hereof. 
 2.36 “Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code. 
 2.37 “Substitute Awards” means Awards granted upon assumption of, or in substitution for, outstanding awards previously granted (whether pursuant to
this Plan or pursuant to any other program or contract) by the Company or a Subsidiary or by a company or other entity acquired by the Company or any Subsidiary or with which the Company or any Subsidiary combines. 
 2.38 “Ten Percent Shareholder” means an individual who owns more than ten percent (10%) of the total combined voting power of all classes of
outstanding shares of the Company, its parent or any of its Subsidiaries. In determining share ownership, the attribution rules of Section 424(d) of the Code shall be applied. 
 2.39 “Termination Date” means the date upon which an Option shall terminate or expire, as set forth in Section 8.3 hereof. 
 2.40 “Unrestricted Shares” means an Award pursuant to Section 11 hereof. 
 3. ADMINISTRATION
OF THE PLAN 
 3.1. Board. Subject to the delegation described in Section 3.2, below, the Board shall have such powers and authorities related
to the administration of the Plan as are consistent with the Company’s governing documents and applicable law. The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 4 of 20 

 
Plan, any Award or any Award Agreement and shall have full power and authority to take all such other actions and make all such other determinations not
inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan, any Award or any Award Agreement. All such actions and determinations shall be by the affirmative
vote of a majority of the members of the Board present at a meeting or by unanimous consent of the Board executed in writing in accordance with the Company’s governing documents and applicable law. The interpretation and construction by the
Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. 
 3.2. Committee. The Board from time to
time may delegate to the Committee such powers and authorities related to the administration and implementation of the Plan, as set forth in Section 3.1 above and other applicable provisions, as the Board shall determine, consistent with
the Company’s governing documents and applicable law. As of the Effective Date, the Board has delegated, until further written notice, full authority to the Committee to operate the Plan and to grant and interpret Awards thereunder.
If the Plan, any Award or any Award Agreement entered into hereunder provides for any action to be taken by or determination to be made by the Board, such action may be taken or such determination may be made by the Committee if the power and
authority to do so has been delegated to the Committee by the Board as provided for in this Section. Unless otherwise expressly determined by the Board, any such action or determination by the Committee shall be final, binding and conclusive.

 3.3. Terms of Awards. Subject to the other terms and conditions of the Plan, the Board or the Committee, as the case may be, shall have full and
final authority to: 
 (i) designate Participants, 
 (ii) determine the type or types of Awards to be made to a Participant, including Substitute Awards made, inter alia, in consideration of the cancellation of prior outstanding stock options, 
 (iii) determine the number of Shares to be subject to an Award, 
 (iv) establish the terms and conditions of each Award (including, but not limited to, the exercise price of any Option, the nature and duration of any restriction or condition (or provision for lapse thereof) relating
to the vesting, exercise, transfer, or forfeiture of an Award or the Shares subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options), 
 (v) prescribe the form of each Award Agreement evidencing an Award, and 
 (vi) amend, modify, or supplement the terms of any outstanding Award. Notwithstanding the foregoing, no amendment, modification or supplement of any Award shall, without the consent of the Participant, impair the
Participant’s rights under such Award. 
 The Company may retain the right in an Award Agreement to cause a forfeiture of the gain realized by a
Participant on account of actions taken by the Participant in violation or breach of or in conflict with any employment agreement, non-competition agreement, any agreement 

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 5 of 20 

 
prohibiting solicitation of employees or clients of the Company or any Subsidiary thereof or any confidentiality obligation with respect to the Company or
any Subsidiary thereof or otherwise in competition with the Company or any Subsidiary thereof, to the extent specified in such Award Agreement applicable to the participant. Furthermore, unless the Board provides otherwise in the applicable Award
Agreement, the Company may annul an Award if the Participant is an employee of the Company or a Subsidiary thereof and is terminated for Cause as defined in the applicable Award Agreement or the Plan, as applicable. 
 Notwithstanding the foregoing, no amendment or modification may be made to an outstanding Option or SAR which reduces the Option Price or SAR Exercise Price, either by
lowering the Option Price or SAR Exercise Price or by canceling the outstanding Option or SAR and granting a replacement Option or SAR with a lower exercise price without the approval of Company’s shareholders, provided, that, appropriate
adjustments may be made to outstanding Options and SARs pursuant to Section 17. 
 3.4. Deferral Arrangement. The Board may permit or require the
deferral of any award payment into a deferred compensation arrangement, subject to compliance with Section 409A, where applicable, and such rules and procedures as it may establish, which may include provisions for the payment or crediting of
interest or dividend equivalents. 
 3.5. No Liability. No member of the Board or of the Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Award or Award Agreement. 
 3.6. Book Entry. Notwithstanding any other provision of this Plan to
the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of Share certificates through the use of book-entry. 
 4.
SHARES SUBJECT TO THE PLAN 
 Subject to adjustment as provided in Section 17 hereof, the number of Shares available for issuance under the
Plan shall be fifteen million (15,000,000). Shares issued or to be issued under the Plan shall be authorized but unissued Shares or issued Shares that have been reacquired by the Company. If any Shares covered by an Award are not purchased or are
forfeited, or if an Award otherwise terminates without delivery of Shares subject thereto, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award shall, to the extent of any such
forfeiture or termination, again be available for making Awards under the Plan. If an Award (other than a Dividend Equivalent Right) is denominated in Shares, the number of Shares covered by such Award, or to which such Award relates, shall be
counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the Plan. Notwithstanding anything herein to the contrary, Shares subject to an Award under the Plan may not again be made
available for issuance under the Plan if such Shares are Shares delivered to or withheld by the Company to pay the exercise price or the withholding taxes under Options or Share Appreciation Rights. 
 The Board shall have the right to substitute or assume Awards in connection with mergers, reorganizations, separations, or other transactions to which
Section 424(a) of the Code applies. The number of Shares reserved pursuant to Section 4 may be increased by the corresponding number of Awards assumed and, in the case of a substitution, by the net increase in the number of Shares
subject to Awards before and after the substitution. 
  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
 Adopted 2/5/08, Page 6 of 20 

 5. EFFECTIVE DATE, DURATION AND AMENDMENTS 
 5.1. Effective Date. The Plan shall be effective as of the Effective Date, subject to approval of the Plan by the Company’s shareholders within one year of the Effective Date. Upon approval of the Plan by
the Company’s shareholders as set forth above, all Awards made under the Plan on or after the Effective Date shall be fully effective as if the Company’s shareholders had approved the Plan on the Effective Date. If the shareholders fail to
approve the Plan within one year after the Effective Date, any Awards made hereunder shall be null and void and of no effect. 
 5.2. Term. The Plan
shall terminate automatically ten (10) years after its adoption by the Board and may be terminated on any earlier date as provided in Section 5.3. 
 5.3. Amendment and Termination of the Plan. The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any Shares as to which Awards have not been made. An amendment shall be contingent on approval
of the Company’s shareholders to the extent stated by the Board, required by applicable law or required by applicable stock exchange listing requirements. In addition, an amendment will be contingent on approval of the Company’s
shareholders if the amendment would: (i) materially increase the benefits accruing to Participants under the Plan, (ii) materially increase the aggregate number of Shares that may be issued under the Plan, or (iii) materially modify
the requirements as to eligibility for participation in the Plan. No Awards shall be made after termination of the Plan. No amendment, suspension or termination of the Plan shall, without the consent of the Participant, impair rights or obligations
under any Award theretofore awarded under the Plan. 
 6. AWARD ELIGIBILITY AND LIMITATIONS 
 6.1. Service Providers and Other Persons. Subject to this Section 6, Awards may be made under the Plan to: (i) any Service Provider to the Company
or any Subsidiary, including any Service Provider who is an officer or director of the Company or any Subsidiary, as the Board or the Committee, as the case may be, shall determine and designate from time to time, (ii) any other individual
whose participation in the Plan is determined to be in the best interests of the Company by the Board. 
 6.2. Successive Awards and Substitute
Awards. An eligible person may receive more than one Award, subject to such restrictions as are provided herein. Notwithstanding Sections 8.1 and 9.1, the Option Price of an Option or the grant price of an SAR that is a Substitute
Award may be less than 100% of the Fair Market Value of a Share on the original Grant Date and provided that the Option Price or grant price is determined in accordance with the principles of Code Section 424 and the regulations thereunder.

 7. AWARD AGREEMENT 
 Each Award granted pursuant to
the Plan shall be evidenced by an Award Agreement, in such form or forms as the Board or the Committee, as the case may be, shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar
provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall specify whether such Options are intended to be Non-Qualified Options or Incentive Stock Options, and in the absence of such
specification such options shall be deemed Non-Qualified Options. 
  

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 8. TERMS AND CONDITIONS OF OPTIONS 
 8.1. Option Price. The Option Price of each Option shall be fixed by the Board or the Committee, as the case may be, and stated in the Award Agreement evidencing such Option. The Option Price of each Option
shall be at least the Fair Market Value on the Grant Date of a Share; provided, however, that in the event that a Participant is a Ten Percent Shareholder, the Option Price of an Option granted to such Participant that is intended to
be an Incentive Stock Option shall be not less than 110 percent of the Fair Market Value of a Share on the Grant Date. In no case shall the Option Price of any Option be less than the par value of a Share. 
 8.2. Vesting. Subject to Sections 8.3, 8.4, 8.5 and 17.3 hereof, each Option granted under the Plan shall become exercisable at such times and under such
conditions (including based on achievement of performance goals and/or future service requirements) as shall be determined by the Board or the Committee, as the case may be, and stated in the Award Agreement. For purposes of this
Section 8.2, fractional numbers of Shares subject to an Option shall be rounded down to the next nearest whole number. 
 8.3. Term. Each
Option granted under the Plan shall terminate, and all rights to purchase Shares thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such circumstances and on such date prior thereto as is set
forth in the Plan or as may be fixed and stated in the Award Agreement relating to such Option (the “Termination Date”); provided, however, that in the event that the Participant is a Ten Percent Shareholder, an Option
granted to such Participant that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date. 
 8.4. Termination of Service. Unless otherwise provided for in an Award Agreement or in writing after the Award Agreement is issued, upon the termination of a Participant’s Service, except to the extent that such termination is
due to death, or Change in Control of the Company or as otherwise specified in the Award Agreement, any Option held by such Participant that have not vested shall immediately be deemed forfeited and any otherwise vested Option or unexercised portion
thereof shall terminate three (3) months after the date of such termination of Service, but in no event later than the date of expiration of the Option. If a Participant’s Service is terminated for Cause, the Option or unexercised portion
thereof shall terminate as of the date of such termination. Unless otherwise provided for in an Award Agreement or in writing after the Award Agreement is issued, if a Participant’s Service is terminated due to death, any Option of the deceased
Participant shall become fully vested and shall continue in accordance with its terms, may be exercised, to the extent of the number of Shares with respect to which he/she could have exercised the Option on the date of his/her death, by his/her
estate, personal representative or beneficiary who acquires the Option by will or by the laws of descent and distribution, and shall expire on its normal date of expiration unless previously exercised (except that an Incentive Stock Option shall
cease to be an Incentive Stock Option upon the expiration of twelve (12) months from the date of the Participant’s death and thereafter shall be a Non-Qualified Option). Such provisions shall be determined in the sole discretion of the
Board or the Committee, as the case may be, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
 8.5. Change in Control. Unless otherwise provided for in an Award Agreement or in writing 

  

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after the Award Agreement is issued, in the event of a Change in Control, a Participant’s unvested Options shall become fully vested and may be
exercised until their normal date of expiration. 
 8.6. Limitations on Exercise of Option. Notwithstanding any other provision of the Plan, in no
event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the Company’s shareholders as provided herein or after the occurrence of an event referred to in Section 17 hereof which results in
termination of the Option. 
 8.7. Method of Exercise. An Option that is exercisable may be exercised by the Participant’s delivery to the
Company of written notice of exercise on any business day, at the Company’s principal office, on the form specified by the Board or the Committee, as the case may be. Such notice shall specify the number of Shares with respect to which the
Option is being exercised and shall be accompanied by payment in full of the Option Price of the Shares for which the Option is being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be
required to withhold with respect to an Award. 
 8.8. Rights of Holders of Options. Unless otherwise stated in the applicable Award Agreement, a
Participant holding or exercising an Option shall have none of the rights of a shareholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject Shares or to direct the voting of the subject
Shares) until the Shares covered thereby are fully paid and issued to the Participant. Except as provided in Section 17 hereof, no adjustment shall be made for dividends, distributions or other rights for which the record date is prior
to the date of such issuance. 
 8.9. Delivery of Share Certificates. Promptly after the exercise of an Option by a Participant and the payment in
full of the Option Price, such Participant shall be entitled to the issuance of a Share certificate or certificates evidencing his/her ownership of the Shares purchased upon such exercise. 
 8.10. Transferability of Options. Except as provided in Section 8.11, during the lifetime of a Participant, only the Participant (or, in the event of
legal incapacity or incompetency, the Participant’s guardian or legal representative) may exercise an Option. Except as provided in Section 8.11, no Option shall be assignable or transferable by the Participant to whom it is
granted, other than by will or the laws of descent and distribution. 
 8.11. Family Transfers. If authorized in the applicable Award Agreement, a
Participant may transfer, not for value, all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this Section 8.11, a “not for value” transfer is a transfer which is (i) a
gift, (ii) a transfer under a domestic relations order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting interests are owned by Family Members (or the Participant) in
exchange for an interest in that entity. Following a transfer under this Section 8.11, any such Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers
of transferred Options are prohibited except to Family Members of the original Participant in accordance with this Section 8.11 or by will or the laws of descent and distribution. The events of termination of Service of
Section 8.4 hereof shall continue to be applied with respect to the original Participant, following which the Option shall be exercisable by the transferee only to the extent, and for the periods specified, in Section 8.4.

  

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 8.11. Limitations on Incentive Stock Options. An Option shall constitute an Incentive Stock Option only
(i) if the Participant of such Option is an employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market
Value (determined at the time the Option is granted) of the Shares with respect to which all Incentive Stock Options held by such Participant become exercisable for the first time during any calendar year (under the Plan and all other plans of the
Participant’s employer and its affiliates) does not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted. 
 9. TERMS AND CONDITIONS OF SHARE APPRECIATION RIGHTS 
 9.1. Right to Payment and Grant Price. An SAR shall
confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the SAR as determined by the Board or the
Committee, as the case may be. The Award Agreement for an SAR shall specify the grant price of the SAR, which shall be at least the Fair Market Value of a Share on the Grant Date. SARs may be granted in conjunction with all or part of an Option
granted under the Plan or at any subsequent time during the term of such Option, in conjunction with all or part of any other Award or without regard to any Option or other Award. 
 9.2. Other Terms. The Board or the Committee, as the case may be, shall determine at the Grant Date or thereafter, the time or times at which and the conditions under which an SAR may be exercised (including
based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be or become exercisable following termination of Service or upon other conditions, the method of exercise, method of
settlement, form of consideration payable in settlement, method by or forms in which Shares will be delivered or deemed to be delivered to Participants, whether or not an SAR shall be in tandem or in combination with any other Award, and any other
terms and conditions of any SAR. 
 10. TERMS AND CONDITIONS OF RESTRICTED SHARES AND RESTRICTED SHARE UNITS 
 10.1. Grant of Restricted Shares or Restricted Share Units. Awards of Restricted Shares or Restricted Share Units may be made to eligible persons. Restricted
Shares or Restricted Share Units may be awarded for no consideration (other than par value of the Shares which is deemed paid by Services already rendered). Restricted Shares or Restricted Share Units may also be referred to as performance shares or
performance share units. 
 10.2. Restrictions. At the time an Award of Restricted Shares or Restricted Share Units is made, the Board or the
Committee, as the case may be, may, in its sole discretion, establish a period of time (a “restricted period”) applicable to such Restricted Shares or Restricted Share Units. Unless a different restricted period is specified, the default
restricted period shall, for an employee be three (3) years with respect to which twenty-five percent (25%) of the Shares shall be vested upon the Grant Date and twenty-five percent (25%) of the Shares related to such Award shall
become nonforfeitable or vest on each of the first three (3) anniversaries of the Grant Date, and shall, for a Director be the period for which such Director continues to serve as a Director. Each Award of Restricted Shares or Restricted Share
Units may be subject to a 

  

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different restricted period. The Board or the Committee, as the case may be, may, in its sole discretion, at the time a grant of Restricted Shares or
Restricted Share Units is made, prescribe restrictions in addition to or other than the expiration of the restricted period, including the satisfaction of corporate or individual performance conditions, which may be applicable to all or any portion
of the Restricted Shares or Restricted Share Units in accordance with Section 14.1 and 14.2. Neither Restricted Shares nor Restricted Share Units may be sold, transferred, assigned, pledged or otherwise encumbered or disposed of
during the restricted period or prior to the satisfaction of any other restrictions prescribed with respect to such Restricted Shares or Restricted Share Units. Each Participant may designate a beneficiary for the Restricted Shares or Restricted
Share Units awarded to him or her under the Plan. If a Participant fails to designate a beneficiary, the Participant shall be deemed to have designated his or her estate as his or her beneficiary. 
 10.3. Restricted Shares Certificates. The Company shall issue, in the name of each Participant to whom Restricted Shares has been granted, Share certificates
representing the total number of Restricted Shares granted to the Participant, as soon as reasonably practicable after the Grant Date. The Board or the Committee, as the case may be, may provide in an Award Agreement that either (i) the Company
shall hold such certificates for the Participant’s benefit until such time as the Restricted Shares are forfeited to the Company or the restrictions lapse, or (ii) such certificates shall be delivered to the Participant, provided,
however, that such certificates shall bear a legend or legends that comply with the applicable securities laws and regulations and makes appropriate reference to the restrictions imposed under the Plan and the Award Agreement. 
 10.4. Rights of Holders of Restricted Shares. Unless otherwise provided for in an Award Agreement, holders of Restricted Shares shall have the right to vote such
Shares and the right to receive any dividends declared or paid with respect to such Shares. All distributions, if any, received by a Participant with respect to Restricted Shares as a result of any share split, share dividend, combination of shares,
or other similar transaction shall be subject to the restrictions applicable to the original Award. 
 10.5. Rights of Holders of Restricted Share Units.

 10.5.1. Dividend Rights. Unless the Board otherwise provides in an Award Agreement, holders of Restricted Share Units shall have no rights as
shareholders of the Company. The Award Agreement evidencing a grant of Restricted Share Units may provide that the holder of such Restricted Share Units shall be entitled to receive, upon the Company’s payment of a cash dividend on its
outstanding Shares, a cash payment for each Restricted Share Unit held equal to the per-share dividend paid on the Shares in accordance with Section 13. 
 10.5.2. Creditor’s Rights. A holder of Restricted Share Units shall have no rights other than those of a general creditor of the Company. Restricted Share Units represent an unfunded and unsecured
obligation of the Company, subject to the terms and conditions of the applicable Award Agreement. 
 10.6. Termination of Service. Unless otherwise
provided for in an Award Agreement or in writing after the Award Agreement is issued, upon the termination of a Participant’s Service, any Restricted Shares or Restricted Share Units held by such Participant that have not vested, or with
respect to which all applicable restrictions and conditions have not lapsed, shall immediately be 

  

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deemed forfeited, except to the extent that such termination is due to death or Change in Control of the Company or as otherwise specified in the Award
Agreement. Further, the Award Agreement may specify that the vested portion of the Award shall continue to be subject to the terms of any applicable transfer or other restriction. Upon forfeiture of Restricted Shares or Restricted Share Units, the
Participant shall have no further rights with respect to such Award, including but not limited to any right to vote Restricted Shares or any right to receive dividends with respect to Restricted Shares or Restricted Share Units. 
 10.7. Purchase of Restricted Shares. If a Participant receives an Award consisting of Restricted Shares and the Participant subsequently satisfies the conditions
necessary to enable the Participant to retain the Restricted Shares, for purposes of satisfying any corporate law requirement to demonstrate that the Company has received consideration in return for such Restricted Shares at least equal to the par
value of such Restricted Shares, the Participant may be deemed, in the discretion of the Board or the Committee, as the case may be, to have provided consideration to the Company in an amount equal to the aggregate par value of such Restricted
Shares through the performance of past Services to the Company or a Subsidiary. 
 10.8. Delivery of Share. Except as otherwise specified with respect
to a particular Award of Restricted Shares, within thirty (30) days of the expiration or termination of the restricted period, a certificate or certificates representing all Shares relating to such Award which have not been forfeited shall be
delivered to the Participant or to the Participant’s beneficiary or estate, as the case may be. Except as otherwise specified with respect to a particular Award of Restricted Share Units, within thirty (30) days of the satisfaction of the
vesting criterion applicable to such Award, a certificate or certificates representing all Shares relating to such Award which have vested shall be issued or transferred to the Participant. 
 11. TERMS AND CONDITIONS OF UNRESTRICTED SHARES AWARDS 
 The Board or
the Committee, as the case may be, may, in its sole discretion, grant (or sell at par value or such other higher purchase price as it may determine) an Unrestricted Shares Award to any Participant pursuant to which such Participant may receive
Shares free of any restrictions (“Unrestricted Shares”) under the Plan. Unrestricted Shares Awards may be granted or sold as described in the preceding sentence in respect of past services and other valid consideration, or in lieu of, or
in addition to, any cash compensation due to such Participant. 
 12. FORM OF PAYMENT FOR OPTIONS AND RESTRICTED SHARES 
 12.1. General Rule. Payment of the Option Price for the Shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Shares shall be
made in cash or in cash equivalents acceptable to the Company. 
 12.2. Surrender of Shares. To the extent the Award Agreement so provides, payment of
the Option Price for Shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Shares may be made all or in part through the tender to the Company of Shares, which Shares, if acquired from the Company, shall have
been held for at least six months at the time of tender and which shall be valued, for purposes of determining the extent to which the Option Price or Purchase Price has been paid thereby, at their Fair Market Value on the date of exercise or
surrender. 
  

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 12.3. Cashless Exercise. With respect to an Option only to the extent permitted by law and to the extent the Award
Agreement so provides, payment of the Option Price for Shares purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Board or the Committee, as the case may be), of an irrevocable
direction to a registered securities broker acceptable to the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 18.3.

 12.4. Other Forms of Payment. To the extent the Award Agreement so provides, payment of the Option Price for Shares purchased pursuant to exercise
of an Option or the Purchase Price for Restricted Shares may be made in any other form that is consistent with applicable laws, regulations and rules. 
 13. TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS 
 13.1. Dividend Equivalent Rights. A Dividend Equivalent Right is an Award
entitling the recipient to receive credits based on cash distributions that would have been paid on the Shares specified in the Dividend Equivalent Right (or other Award to which it relates) if such Shares had been issued to and held by the
recipient. A Dividend Equivalent Right may be granted hereunder to any Participant. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award. Dividend equivalents credited to the holder of a Dividend Equivalent Right
may be paid currently or may be deemed to be reinvested in additional Shares, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment. Dividend Equivalent Rights may be
settled in cash or Shares or a combination thereof, in a single installment or installments, all determined in the sole discretion of the Board. A Dividend Equivalent Right granted as a component of another Award may provide that such Dividend
Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other
Award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award. 
 13.2.
Termination of Service. Except as may otherwise be provided by the Board either in the Award Agreement or in writing after the Award Agreement is issued, a Participant’s rights in all Dividend Equivalent Rights shall automatically terminate
upon the Participant’s termination of Service for any reason. 
 14. TERMS AND CONDITIONS OF PERFORMANCE AWARDS 
 14.1. Performance Conditions. The right of a Participant to exercise or receive a grant or settlement of any Award, and the timing thereof, may be subject to such
corporate or individual performance conditions as may be specified by the Board or the Committee, as the case may be. The Board or the Committee, as the case may be, may use such business criteria and other measures of performance as it may deem
appropriate in establishing any performance conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance conditions, except as limited under Sections 14.2 hereof in the case of a Performance
Award intended to qualify under Code Section 162(m). If and to the extent required under Code Section 162(m), any power or authority relating to a Performance Award intended to qualify under Code Section 162(m), shall be exercised by
the Committee and not the Board. 
  

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 14.2. Performance Awards Granted to Designated Covered Employees. If and to the extent that the Committee
determines that a Performance Award to be granted to a Participant who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based compensation” for purposes of Code Section 162(m), the
grant, exercise and/or settlement of such Performance Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 14.2. 
 14.2.1. Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria and a
targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 14.2. Performance goals shall be objective and shall otherwise meet the requirements of Code
Section 162(m) and regulations thereunder including the requirement that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may
determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, exercise and/or settlement of such
Performance Awards. Performance goals may differ for Performance Awards granted to any one Participant or to different Participants. 
 14.2.2. Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or specified Subsidiaries or business units of the Company (except with respect to the total shareholder return
and earnings per share criteria), shall be used exclusively by the Committee in establishing performance goals for such Performance Awards: (1) total shareholder return (share price appreciation plus dividends), (2) net income,
(3) earnings per share, (4) funds from operations, (5) funds from operations per share, (6) return on equity, (7) return on assets, (8) return on invested capital, (9) increase in the market price of Shares or
other securities, (10) revenues, (11) operating income, (12) operating margin (operating income divided by revenues), (13) earnings before interest, taxes, depreciation and amortization (EBITDA), (14) the performance of the
Company in any one or more of the items mentioned in clauses (1) through (13) in comparison to the average performance of the companies used in a self-constructed peer group for measuring performance under an Award, or (15) the
performance of the Company in any one or more of the items mentioned in clauses (1) through (13) in comparison to a budget or target for measuring performance under an Award. Business criteria may be measured on an absolute basis or on a
relative basis (i.e., performance relative to peer companies) and on a GAAP or non-GAAP basis. 
 14.2.3. Timing For Establishing
Performance Goals. Performance goals shall be established, in writing, not later than 90 days after the beginning of any performance period applicable to such Performance Awards, or at such other date as may be required for
“performance-based compensation” under Code Section 162(m). 
  

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 14.2.4. Settlement of Performance Awards; Other Terms. Settlement of such Performance Awards shall
be in Shares, other Awards or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such Performance Awards. The Committee shall specify
the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of Service by the Participant prior to the end of a performance period or settlement of Performance Awards. 
 14.3. Written Determinations. All determinations by the Committee as to the establishment of performance goals, the amount of any Performance Award pool or
potential individual Performance Awards and as to the achievement of performance goals relating to Performance Awards shall be made in writing in the case of any Award intended to qualify under Code Section 162(m). To the extent required to
comply with Code Section 162(m), the Committee may delegate any responsibility relating to such Performance Awards. 
 14.4. Status of
Section 14.2 Awards Under Code Section 162(m). It is the intent of the Company that Performance Awards under Section 14.2 hereof granted to persons who are designated by the Committee as likely to be Covered Employees
within the meaning of Code Section 162(m) and regulations thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within the meaning of Code Section 162(m) and regulations
thereunder. Accordingly, the terms of Section 14.2, including the definitions of Covered Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The
foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Participant will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall
mean only a person designated by the Committee, at the time of grant of Performance Awards, as likely to be a Covered Employee with respect to that fiscal year. If any provision of the Plan or any agreement relating to such Performance Awards does
not comply or is inconsistent with the requirements of Code Section 162(m) or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
 15. PARACHUTE LIMITATIONS. Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered
into by a Participant with the Company or any Subsidiary, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this paragraph (an “Other Agreement”), and notwithstanding
any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Participant (including groups or classes of Participants or beneficiaries of which the Participant is a member), whether or not such
compensation is deferred, is in cash, or is in the form of a benefit to or for the Participant (a “Benefit Arrangement”), if the Participant is a “disqualified individual,” as defined in Section 280G(c) of the Code, any
Option, Restricted Shares or Restricted Share Units held by that Participant and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting,
payment, or benefit, taking into account all other rights, payments, or benefits to or for the Participant under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Participant under this Plan to
be considered a “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of 

  

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receiving a Parachute Payment, the aggregate after-tax amounts received by the Participant from the Company under this Plan, all Other Agreements, and all
Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Participant without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to
exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Participant under any Other Agreement or any Benefit Arrangement would cause the Participant to be considered to have
received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Participant as described in clause (ii) of the preceding sentence, then the Participant shall have the right, in the
Participant’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the
Participant under this Plan be deemed to be a Parachute Payment. 
 16. REQUIREMENTS OF LAW 
 16.1. General. The Company shall not be required to sell or issue any Shares under any Award if the sale or issuance of such Shares would constitute a violation by
the Participant, any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the
Company shall determine, in its discretion, that the listing, registration or qualification of any Shares subject to an Award upon any securities exchange or under any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the issuance or purchase of shares hereunder, no Shares may be issued or sold to the Participant or any other individual exercising an Option pursuant to such Award unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Award. Specifically, in connection with the Securities Act, upon
the exercise of any Option or the delivery of any Shares underlying an Award, unless a registration statement under such Act is in effect with respect to the Shares covered by such Award, the Company shall not be required to sell or issue such
shares unless the Company has received evidence satisfactory to it that the Participant or any other individual exercising an Option may acquire such Shares pursuant to an exemption from registration under the Securities Act. Any determination in
this connection by the Company shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company shall not be obligated to take any
affirmative action in order to cause the exercise of an Option or the issuance of Shares pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly imposes the requirement that an
Option shall not be exercisable until the Shares covered by such Option are registered or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon
the effectiveness of such registration or the availability of such an exemption. 
 16.2. Rule 16b-3. During any time when the Company has a class of
equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards pursuant to the Plan and the exercise of Options granted hereunder will qualify for the exemption provided by Rule 16b-3 under the
Exchange Act. To the extent that any provision of the Plan or action by the Board does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board and shall not
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of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board or the Committee, as the case may be, may exercise its discretion to modify this
Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 
 17.
EFFECT OF CHANGES IN CAPITALIZATION 
 17.1. Changes in Shares. If the number of outstanding Shares is increased or decreased or the Shares are
changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, share split, reverse split, combination of shares, exchange of shares, share dividend or
other distribution payable in capital stock, or other increase or decrease in such Shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of Shares for which grants of Options and
other Awards may be made under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of Shares for which Awards are outstanding shall be adjusted proportionately and accordingly so that the
proportionate interest of the Participant immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options or SARs shall not change the aggregate Option Price
or SAR Exercise Price payable with respect to Shares that are subject to the unexercised portion of an outstanding Option or SAR, as applicable, but shall include a corresponding proportionate adjustment in the Option Price or SAR Exercise Price per
Share. The conversion of any convertible securities of the Company shall not be treated as an increase in Shares effected without receipt of consideration. Notwithstanding the foregoing, in the event of any distribution to the Company’s
shareholders of securities of any other entity or other assets (including an extraordinary cash dividend but excluding a non-extraordinary dividend payable in cash or in shares of common stock of the Company) without receipt of consideration by the
Company, the Company may, in such manner as the Company deems appropriate, adjust (i) the number and kind of Shares subject to outstanding Awards and/or (ii) the exercise price of outstanding Options and Share Appreciation Rights to
reflect such distribution. 
 17.2. Reorganization in which the Company is the Surviving Entity. Subject to Section 17.3 hereof, if the
Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities which does not constitute a Corporate Transaction, any Option or SAR theretofore granted pursuant to the Plan shall
pertain to and apply to the securities to which a holder of the number of Shares subject to such Option or SAR would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate
adjustment of the Option Price or SAR Exercise Price per share so that the aggregate Option Price or SAR Exercise Price thereafter shall be the same as the aggregate Option Price or SAR Exercise Price of the Shares remaining subject to the Option or
SAR immediately prior to such reorganization, merger, or consolidation. Subject to any contrary language in an Award Agreement, any restrictions applicable to such Award shall apply as well to any replacement shares received by the Participant as a
result of the reorganization, merger or consolidation. In the event of a transaction described in this Section 17.2, Restricted Share Units shall be adjusted so as to apply to the securities that a holder of the number of Shares subject to the
Restricted Share Units would have been entitled to receive immediately following such transaction. 
  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
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 17.3. Corporate Transaction. Subject to the exceptions set forth in the last sentence of this
Section 17.3, the last sentence of Section 17.4 and the requirements of Section 409A of the Code: 
 (i)
upon the occurrence of a Corporate Transaction, all outstanding Options and Restricted Shares shall be deemed to have vested, and all Restricted Share Units shall be deemed to have vested and the Shares subject thereto shall be delivered,
immediately prior to the occurrence of such Corporate Transaction, and 
 (ii) either of the following two actions shall be taken: 

(A) fifteen days prior to the scheduled consummation of a Corporate Transaction, all Options and SARs outstanding hereunder shall become immediately
exercisable and shall remain exercisable for a period of fifteen days, or 
 (B) the Board may elect, in its sole discretion, to cancel any
outstanding Awards of Options, Restricted Shares, Restricted Share Units, and/or SARs and pay or deliver, or cause to be paid or delivered, to the holder thereof an amount in cash or securities having a value, in the case of Restricted Shares or
Restricted Share Units, equal to the formula or fixed price per Share paid to holders of Shares and, in the case of Options or SARs, equal to the product of the number of Shares subject to the Option or SAR (the “Award Shares”) multiplied
by the amount, if any, by which (I) the formula or fixed price per Share paid to holders of Shares pursuant to such transaction exceeds (II) the Option Price or SAR Exercise Price applicable to such Award Shares. 
 With respect to the Company’s establishment of an exercise window, (i) any exercise of an Option or SAR during such fifteen-day period shall be conditioned
upon the consummation of the event and shall be effective only immediately before the consummation of the event, and (ii) upon consummation of any Corporate Transaction, the Plan and all outstanding but unexercised Options and SARs shall
terminate. The Board shall send written notice of an event that will result in such a termination to all individuals who hold Options and SARs not later than the time at which the Company gives notice thereof to its shareholders. This
Section 17.3 shall not apply to any Corporate Transaction to the extent that provision is made in writing in connection with such Corporate Transaction for the assumption or continuation of the Options, SARs, Restricted Shares and
Restricted Share units theretofore granted, or for the substitution for such Options, SARs, Restricted Shares and Restricted Share Units for new options, SARs, restricted share and restricted shares units relating to the shares of a successor
entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration that is not common shares) and option and share appreciation right exercise prices, in which event the Plan, Options,
SARs, Restricted Shares and Restricted Share Units theretofore granted shall continue in the manner and under the terms so provided. 
 17.4. Adjustments.
Adjustments under this Section 17 related to Shares or other securities of the Company shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. No fractional Shares or other securities
shall be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole Share. The Board shall determine the 

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
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effect of a Corporate Transaction upon Awards other than Options, SARs, Restricted Shares and Restricted Share Units, and such effect shall be set forth in
the appropriate Award Agreement. The Board may provide in the Award Agreements at the Grant Date, or any time thereafter with the consent of the Participant, for different provisions to apply to an Award in place of those described in Sections
17.1, 17.2 and 17.3. 
 17.5. No Limitations on Company. The making of Awards pursuant to the Plan shall not affect or limit in any way the
right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or
assets. 
 18. GENERAL PROVISIONS 
 18.1.
Disclaimer of Rights. No provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the Company or any Subsidiary, or to interfere in any way with any
contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship between any individual and the Company or
any Subsidiary. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties or position of the
Participant, so long as such Participant continues to be a trustee, officer, consultant or employee of the Company or a Subsidiary. The obligation of the Company to pay any benefits pursuant to this Plan shall be interpreted as a contractual
obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party trustee or otherwise hold any
amounts in Company or escrow for payment to any Participant or beneficiary under the terms of the Plan. 
 18.2. Nonexclusivity of the Plan. Neither
the adoption of the Plan nor the submission of the Plan to the Company’s shareholders for approval shall be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements
(which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or particular individuals) as the Board in its discretion determines desirable, including, without limitation, the
granting of Share options otherwise than under the Plan. 
 18.3. Withholding Taxes. The Company or a Subsidiary, as the case may be, shall have the
right to deduct from payments of any kind otherwise due to a Participant any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to an Award or upon the
issuance of any Shares upon the exercise of an Option or pursuant to an Award. At the time of such vesting, lapse, or exercise, the Participant shall pay to the Company or the Subsidiary, as the case may be, any amount that the Company or the
Subsidiary may reasonably determine to be necessary to satisfy such withholding obligation. Subject to the prior approval of the Company or the Subsidiary, which may be withheld by the Company or the Subsidiary, as the case may be, in its sole
discretion, the Participant may elect to satisfy such obligations, in whole or in part, (i) by causing the Company or the Subsidiary to withhold Shares otherwise issuable to the Participant or (ii) by delivering to the Company or the
Subsidiary Shares already owned by the Participant. The Shares so delivered or withheld shall 

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
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have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the Shares used to satisfy such withholding obligation
shall be determined by the Company or the Subsidiary as of the date that the amount of tax to be withheld is to be determined. A Participant who has made an election pursuant to this Section 18.3 may satisfy his/her withholding
obligation only with Shares that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. 
 18.4. Captions.
The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or such Award Agreement. 
 18.5. Other Provisions. Each Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Board, in its sole discretion. 
 18.6. Number and Gender. With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine
gender, etc., as the context requires. 
 18.7. Severability. If any provision of the Plan or any Award Agreement shall be determined to be illegal or
unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. 

18.8. Governing Law. The validity and construction of this Plan and the instruments evidencing the Awards hereunder shall be governed by the laws of the State
of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan and the instruments evidencing the Awards granted hereunder to the substantive laws of any other
jurisdiction. 
 18.9. Section 409A of the Code. The Board intends to comply with Section 409A of Code (“Section 409A”), or an
exemption to Section 409A, with regard to Awards hereunder that constitute nonqualified deferred compensation within the meaning of Section 409A. To the extent that the Board determines that a Participant would be subject to the additional
20% tax imposed on certain nonqualified deferred compensation arrangements pursuant to Section 409A, as a result of any provision of any Award granted under this Plan, such provision shall be deemed amended to the minimum extent necessary to
avoid application of such additional tax. The nature of any such amendment shall be determined by the Board. 
 *    *    * 
 To record adoption of the Plan by the Board as of February 5, 2008, the Company has
caused its authorized officer to execute the Plan. 
  

			
	Telos Corporation
		
	By:	 	 /s/ Therese K. Hathaway

	Title:	 	V.P., Corporate Counsel, Secretary

  

 Telos Corporation, 2008 Omnibus Long-Term Incentive Plan 
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