Document:

ex101projectspartanjhoff

   TCO 361918554v2 1   CONSULTING SERVICES AGREEMENT   THIS CONSULTING SERVICES AGREEMENT (the “Agreement”) is made effective as of May   3, 2016 (the “Effective Date”), by and between DANYA INTERNATIONAL LLC, a Maryland limited   liability company, and its present and future divisions, affiliates and subsidiaries (collectively, the   “Company”), and Jeffrey Hoffman, an individual, who has a federal tax identification number set forth   below his signature block on the signature page hereto (“Consultant”).   Background to Agreement:   A. On the Effective Date, Consultant, as the majority owner of the sole stockholder of the   Company sold to DLH Holdings Corp., a New Jersey corporation (“DLH”), and DLH indirectly acquired   from Consultant (and the other equityholders of the sole stockholder of the Company), all of Consultant’s   equity capital that he indirectly held in the Company, which is now a wholly-owned subsidiary of DLH (the   “Acquisition”).   B. The Company desires to retain the services of Consultant to perform the Services (defined   below) on behalf of the Company as an independent contractor, and Consultant desires to perform the   Services as an independent contractor.   C. Consultant is willing and able to perform such Services in furtherance of the Company’s   business under the terms and conditions of this Agreement.   D. As a condition to the Company’s execution and delivery of this Agreement and   consummation of the Acquisition, Consultant is obligating himself to certain noncompetition and   nonsolicitation provisions set forth in a Non-Competition Agreement in connection with the Acquisition.    Nothing in this Agreement is intended to supersede any obligations Consultant has under the Non-   Competition Agreement, including without limitation, any noncompetition and nonsolicitation obligations.   NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which   are hereby acknowledged, and intending to be legally bound, the parties incorporate the above-stated   recitals and agree as follows:   1. Scope of Services; Compensation.   (a) Retained Services.  During the Term (as defined below), Consultant will provide   the Company the consulting services set forth in this Section 1 (collectively, the “Services”).  More   specifically, Consultant agrees to use reasonable efforts to (1) provide an efficient transition of the   Company’s business following the Acquisition, and (2) ensure continuity of personnel and the business   enterprise, including by, to the extent reasonably requested by the Company from time to time:   (i) providing bid and proposal support, transfer of knowledge of corporate   infrastructure, general knowledge transfer, transition of customer relationships, and like support   activities;   (ii) providing advice and guidance in order to ensure continuity of current operations;   (iii) providing the Services with all due care, skill and ability and using his reasonable   efforts to promote the interests of the Company;     

 

   TCO 361918554v2 2   (iv) promptly giving to the Company all information and reports it may reasonably   require in connection with matters relating to the provision of the Services or the business of   Company;   (v) providing strategic guidance for the Company;   (vi) assisting in marketing and business development efforts towards current and   potential new customers;   (vii) taking all reasonable steps to offer (or cause to be offered) to the Company any   opportunities related to the Company’s business as soon as practicable after the same come to his   knowledge and in any event before the same are offered by Consultant (or caused by Consultant to   be offered) to any other party; and   (viii) performing such other services reasonably requested by the Company.   (b) Performance.  Consultant will perform the Services in a timely, good and   workmanlike manner, at all times acting in the best interests of the Company and in accordance with the   terms of this Agreement.  Consultant will utilize professional skill, diligence and care to ensure that all   Services are scheduled, performed and completed to the Company’s satisfaction.     (c) Compliance with Laws.  Consultant will perform the Services in compliance with   all applicable laws, rules and regulations.  In addition, Consultant agrees to comply with all applicable   policies of the Company, copies of which will be provided to Consultant upon his request.   (d) Availability.  Consultant will use reasonable efforts to ensure that he is available   during business time on reasonable notice to provide such assistance or information as the Company may   require.  Specifically, the Company and Consultant anticipate that Consultant will render his Services for   no more than forty (40) hours per any calendar week in the Term, which is expected to decrease over time   during the Term (“Agreed Availability”).   2. Term.  The initial term of this Agreement will continue for twelve (12) months following   the Effective Date (“Initial Term”), unless this Agreement is sooner terminated in accordance with the   terms of this Agreement.  By mutual written consent of the Company and Consultant, this Agreement may   be extended beyond the Initial Term for subsequent six (6) month terms up to an additional 12 months   following the Initial Term (together with the Initial Term, the “Term”), unless this Agreement is sooner   terminated in accordance with the terms of this Agreement.     3. Consulting Fee.  In consideration for the Services rendered to the Company, the Company   agrees to pay Consultant (collectively the “Consulting Fee”) $10,000 per month worked during the Term.  It   is intended that the Consulting Fee paid hereunder will constitute compensation to Consultant as an   independent contractor and not as an individual employed by the Company.  Consultant shall invoice the   Company monthly for services and expenses and shall provide such reasonable receipts or other   documentation of expenses as Company might request.  The Company will pay Consultant net fifteen (15)   days from the date of its receipt of invoice. Consultant will invoice the Company on or after the first day of   each month for Services rendered and expenses incurred during the previous month.  The Company will   not withhold any amounts as U.S. federal tax or applicable state tax withholdings from wages or as   employee contributions under the U.S. Federal Insurance Contributions Act, nor will the Company make   any employer contributions thereunder with respect to such payments.  Consultant will be solely responsible   for the reporting, estimation and payment of all federal, state or local county income taxes, fees and other   contributions on or attributable to Consultant’s income attributable to the fees payable hereunder.      

 

   TCO 361918554v2 3   Consultant agrees that he will maintain unemployment and worker’s compensation insurance as required   by law.  The Company will provide no employee benefits including, but not limited to health, life, or   disability insurance, to Consultant or any of his personnel, if any.   4. Out-of-Pocket Expenses.  During the Term, the Company will reimburse Consultant for   reasonable out-of-pocket business, travel or entertainment expenses incurred by Consultant in connection   with and while providing the Services under this Agreement, provided, that Consultant receives Company’s   prior approval prior to incurring any such individual expenses in excess of $1,000. In such event, Consultant   will provide documentation in the form of receipts, vouchers, invoices and the like that pertain to and further   substantiate and verify any such reimbursable expense, and the receipt thereof by the Company, when   requested, will be a condition precedent to payment.    5. Independent Contractor.  In performing his duties hereunder, Consultant will act solely   as an independent contractor and not as a partner, joint venturer or employee of the Company.  Nothing   contained in this Agreement will be construed to create any employment relationship between the Company   and Consultant, or be construed as constituting Consultant or any of his employees or agents as an employee   of the Company, and Consultant will not represent to the contrary to any person, unless expressly authorized   by the Company.  It is understood and agreed that as an independent contractor, Consultant is responsible   for, and has control over, the details and means of performing the Services.  Consultant will not represent   to third persons that Consultant’s status with respect to the Company is anything other than that of an   independent contractor.  Consultant will not have any express or implied right or authority to assume or   create any obligations on behalf or in the name of the Company or to bind the Company to any contract or   undertaking with any other person, nor will Consultant represent that it has such authority.  Consultant and   his employees and agents will not be entitled to any Company fringe benefits and hereby expressly waive   any claim or right that any of them may have against the Company arising out of the operation of any   applicable workers’ compensation law.   6. Confidentiality.   (a) Confidentiality. Consultant hereby acknowledges and agrees that Consultant is bound by   the confidentiality restrictions set forth in Section 3 of that certain Non-Competition Agreement, dated as   of the date hereof, by and between Consultant and the Company, which restrictions are incorporated herein   by reference (with capitalized terms used in such Section 3 having the meaning attributed to such terms as   in such Non-Competition Agreement).   (b) Work Product. Consultant hereby assigns to the Company all right, title and interest in   and to any work product created by Consultant, or to which Consultant contributes, pursuant to this   Agreement (the “Work Product”), including all copyrights, trademarks and other intellectual property   rights contained therein. Consultant agrees to execute, at the Company’s request and expense, all documents   and other instruments necessary or desirable to confirm such assignment.  In the event that Consultant does   not, for any reason, execute such documents within a reasonable time of the Company’s request, Consultant   hereby irrevocably appoints the Company as Consultant’s attorney-in-fact for the purpose of executing such   documents on Consultant’s behalf, which appointment is coupled with an interest.  If Consultant has any   rights, including without limitation “artist’s rights” or “moral rights,” in the Work Product which cannot be   assigned, Consultant agrees to waive enforcement worldwide of such rights against the Company. In the   event that Consultant has any such rights, that cannot be assigned or waived, Consultant hereby grants to   the Company an exclusive, worldwide, irrevocable, perpetual license to use, reproduce, distribute, create   derivative works of, publicly perform and publicly display the Work Product in any medium or format,   whether now known or later developed.     

 

   TCO 361918554v2 4   7. Conflict of Interests.  Consultant hereby represents and warrants that the Services to be   performed hereunder do not conflict with any consulting, employment or other agreement to which   Consultant is a party, and Consultant agrees that he will not, without the Company’s prior written consent,   undertake any consulting engagement or employment that would conflict with the Services to be performed   hereunder.  If during the Term, Consultant becomes aware that he has a potential conflict of interest with   the Company, Consultant will so advise the Company immediately.   8. Termination.   (a) Termination for Convenience.  This Agreement is subject to termination by   mutual agreement at any time.    (b) Material Breach.  Notwithstanding the terms and conditions of Section 8(a), no   notice will be required in the event of a termination of this Agreement based upon a material breach of this   Agreement by the other party hereto.   9. Obligations Upon Termination.  Upon termination of this Agreement for any reason,   Consultant will:   (i) immediately deliver to the Company all documents, books, materials, records,   correspondence, papers and information (on whatever media and wherever located) relating to the   business or affairs of the Company or its business contacts, any keys and any other property of the   Company that is in his possession or under his control;   (ii) irretrievably delete any information relating to the business of the Company stored   on any magnetic or optical disk or memory and all matter derived from such sources which is in   his possession or under his control outside the premises of the Company; and   (iii) provide a signed statement that he has complied fully with his obligations under   this Section 9.   10. Miscellaneous.   (a) Successors and Assignment.  This Agreement will be binding upon and will inure   to the benefit of the parties hereto and their respective successors and assigns; provided, however, that the   obligations of Consultant are personal in nature and, therefore, Consultant will not assign any of his rights   or delegate or subcontract the performance of any of his duties under this Agreement without the prior   written consent of the Company; any such assignment or subcontract without obtaining prior written   consent will be void.   (b) Prior Agreements; Modifications; and Waivers.  The terms and provisions of   this Agreement, along with the Non-Competition Agreement and any nondisclosure or confidentiality   obligations entered into by Consultant in his capacity as an employee of the Company prior to the   Acquisition, are intended to supersede any conflicting terms or conditions in any other agreement between   the parties hereto relating to the subject matter hereof.  This Agreement contains the entire agreement   between the parties hereto regarding the Services, and may not be modified except by written instrument   duly executed by both parties.  The failure of a party hereto to exercise any right or remedy will not be   deemed or constitute a waiver of such right or remedy in the future.  No waiver of any of the provisions of   this Agreement will be deemed or will constitute a waiver of any other provision hereof (regardless of   whether similar), nor will any such waiver constitute a continuing waiver unless otherwise expressly   provided.     

 

   TCO 361918554v2 5   (c) Severability.  If any provision of this Agreement will, for any reason, be held to   violate any applicable law, and so much of said Agreement is held to be unenforceable, then the invalidity   of such a specific provision herein will not be held to invalidate any other provisions herein, which other   provisions will remain in full force and effect unless removal of said invalid provision destroys the   legitimate purposes of this Agreement, in which event this Agreement will be canceled.   (d) Governing Law.  This Agreement will be construed, enforced and governed by   the laws of the State of Maryland without regard to its conflicts of law provisions.   (e) Waiver of Jury Trial.  THE PARTIES IRREVOCABLY WAIVE THE RIGHT   TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL PROCEEDING RELATING TO OR   ARISING OUT OF THIS AGREEMENT.    (f) Advice of Counsel and Construction.  The parties acknowledge that all parties   to this Agreement have had the opportunity to be represented by counsel.  Accordingly the rule of   construction of contract language against the drafting party is hereby waived by all parties.   (g) Notices.  All notices under this Agreement will be sent and deemed duly given   when posted in the United States first-class mail, postage prepaid to the addresses set forth below such   party’s signature on the signature page of this Agreement.  These addresses may be changed from time to   time by written notice to the appropriate party.   (h) Reliance on Counsel and Other Advisors.  Each party hereto has consulted such   legal, financial, technical or other experts as it deems necessary or desirable before entering into this   Agreement.  Each party hereto represents and warrants that it has read, knows, understands and agrees with   the terms and conditions of this Agreement.   (i) Survival.  Provisions of this Agreement that, by their nature are intended to survive   the termination or expiration of this Agreement, including but not limited to Sections 6, 7, 9 and 10, will   survive termination or expiration of this Agreement.   (j) Counterparts; Electronic Signature.  This Agreement may be executed in any   number of counterparts, each of which will be deemed an original, with the same effect as if the signature   on each such counterpart were on the same instrument.  Further, this Agreement may be executed by transfer   of an originally signed document by facsimile or e-mail in PDF format, each of which will be as fully   binding as an original document.   (Signatures on following page.)     

 

   {N0110077  }   TCO 361918554v2   IN WITNESS WHEREOF, the parties hereto have each executed this Consulting Services   Agreement effective as of the date first above written.   COMPANY:            DANYA INTERNATIONAL LLC         By: /s/ Jeffrey A. Hoffman     Name:  Jeffrey A. Hoffman    Title:    CEO      Address:    c/o DLH Holdings Corp.   3565 Piedmont Road, Suite 3-700   Atlanta, Georgia   Attn: Chief Executive Officer       With a copy to:        Holland & Knight LLP     1600 Tysons Boulevard, Suite 700     McLean, Virginia 22102     Attention: Adam J. August         CONSULTANT:            /s/ Jeffrey Hoffman        Jeffrey Hoffman      Tax ID#:________________________________      Address:                             With a copy to:      Greenberg Traurig, LLP   1750 Tysons Boulevard, Suite 1200   McLean, Virginia 22102   Attention: Tim Jessell   Facsimile: (703) 749-1301   E-Mail: jessellt@gtlaw.com              

 

   {N0110077  }   TCO 361918554v2      #37906872_v1ex102projectspartanjhoff

   TCO 361918551v2 1   NON-COMPETITION AGREEMENT   THIS NON-COMPETITION AGREEMENT (“Non-Competition Agreement”) is being   executed and delivered effective as of May 3, 2016, by Jeffrey Hoffman, individually (the “Owner”), the   indirect majority owner of Danya International LLC, a Maryland limited liability company (the   “Company”), in favor of and for the benefit of DLH Holdings Corp., a New Jersey corporation (the   “Buyer”), the Company and each of the Buyer’s and the Company’s present and future successors, assigns   and direct and indirect subsidiaries (individually, a “Covered Party” and collectively, the “Covered   Parties”).   A. As the majority (direct or indirect) equity holder of the Company, and as an officer and   director/manager of the Company, prior to the closing (the “Closing”) of the Transaction (as defined below),   the Owner has obtained extensive and valuable knowledge and confidential information concerning the   business of the Company that has contributed to the value of the Company.   B. Pursuant to an Equity Purchase Agreement dated as of even date herewith, by and among   the Buyer, the Owner and the other parties named therein (the “Purchase Agreement”), the Owner has   agreed to sell to the Buyer, and the Buyer has agreed to purchase all of the issued and outstanding equity   interests of the Company (the “Transaction”).   C. In connection with, and as a condition to the consummation of, the Transaction, and to   enable the Buyer to secure more fully the benefits of such Transaction, including the protection and   maintenance of the Company’s goodwill and confidential information, the Buyer has required that the   Owner enter into this Non-Competition Agreement.   D. The Owner is entering into this Non-Competition Agreement in order to induce the Buyer   to consummate the transactions contemplated by the Purchase Agreement, pursuant to which the Owner   will receive a material benefit.    In order to induce the Buyer to consummate the Transaction, and for other good and valuable   consideration, the receipt and sufficiency of which is hereby acknowledged, the Owner agrees as follows:   1. Restriction on Competition.   (a) Restriction.  The Owner agrees that during the period beginning on the date hereof   and continuing until the fourth anniversary of the date hereof (the “Restricted Period”), the Owner will not,   directly or indirectly (other than on behalf of a Covered Party), without the prior written consent of the   Company, engage in a Competitive Business Activity (as defined below) anywhere in the Territory (as   defined below); provided, however, that notwithstanding the foregoing, the Owner agrees that during the   period beginning on the date hereof and continuing until the end of the second procurement cycle   (including, for the avoidance of doubt, any modifications of existing contracts) with respect to Contract No.   HHSP233201500 144G with the Department of Health and Human Services, dated April 29, 2015, as it   may be extended, modified, replaced, superseded, succeeded or followed-on (the “Head Start Contract”),   Owner will not take any action to interfere, or attempt to interfere, with the business interests of any of the   Covered Parties in such Head Start Contract. For all purposes hereof, the term “Competitive Business   Activity” shall mean having an ownership interest of greater than three percent (3%) (individually or in   combination with an affiliate or immediate family member of the Owner) in or participating, directly or   indirectly, in the operation, financing,  management or control of, or becoming employed in a management   level position by, any firm, partnership, corporation, entity or business that sells, delivers or provides   products or services that are directly competitive with the products or services that are sold, delivered or   provided by the Company as of the date hereof to any agency, branch or instrumentality of the United States     

 

   TCO 361918551v2 2   Government, or to any state or local government, that is a client of the Company as of the date hereof or   was a client of the Company within the one (1) year period prior to the date hereof; provided, that nothing   in this Section 1(a) shall restrict the Owner from being employed directly by the United States federal   government or any state or local government entity.  For all purposes hereof, the term “Territory” means   only the geographic areas in which the Company conducted business during the one (1) year period prior   to the date hereof.   (b) Acknowledgment.  The Owner acknowledges and agrees, based upon the advice   of legal counsel and his own education, experience and training, that (i) the Owner possesses knowledge of   confidential information of the Company, (ii) because of the Owner’s education, experience and   capabilities, the provisions of this Non-Competition Agreement will not prevent the Owner from earning a   livelihood, (iii) the Owner’s execution of this Non-Competition Agreement is a material inducement to the   Buyer to enter into the Purchase Agreement and to realize the Company’s goodwill, and consummate the   transactions contemplated thereby, for which the Owner will receive a substantial financial benefit, (iv) it   would impair the goodwill of the Company and reduce the value of the assets of the Company and cause   serious and irreparable injury if the Owner were to use his ability and knowledge in competition with a   Covered Party, and/or to otherwise breach the obligations contained herein and that the Covered Parties   would not have an adequate remedy at law because of the unique nature of the Company’s products and   services, (v) the Owner has no intention of competing in the Territory with the Company in violation of the   terms of this Agreement during the Restricted Period, (vi) the relevant public policy aspects of restrictive   covenants, covenants not to compete and non-solicitation provisions have been discussed, and every effort   has been made to limit the restrictions placed upon the Owner to those that are reasonable and necessary to   protect the Covered Parties’ legitimate interests, (vii) the foregoing restrictions on competition are fair and   reasonable in type of prohibited activity, geographic area covered, scope and duration, (viii) the   consideration provided by the Buyer under this Non-Competition Agreement is not illusory, and (ix) such   provisions do not impose a greater restraint than is necessary to protect the goodwill or other business   interests of the Covered Parties.   2. No Solicitation; No Disparagement.   (a) No Solicitation of Employees and Consultants.  The Owner agrees that, during the   Restricted Period, the Owner will not, either on his own behalf or on behalf of any other person or entity   (other than the Covered Parties), directly or indirectly, (i) hire or engage as an employee, independent   contractor, consultant or otherwise any Covered Party Personnel (as defined below), (ii) encourage, induce,   attempt to induce, solicit or attempt to solicit any Covered Party Personnel to leave the service (whether as   an employee, consultant or independent contractor) of any Covered Party or (iii) in any way interfere with   the relationship between any Covered Party Personnel and any Covered Party.  For purposes of this Non-   Competition Agreement, “Covered Party Personnel” means and includes any person or entity who is an   employee, consultant or independent contractor of the Company on the date hereof or who was an   employee, consultant or independent contractor of the Company within the one (1) year period prior to the   date hereof, other than (i) any such person or entity who has ceased to be an employee, consultant or   independent contractor of the Company for a period of six (6) or more months and (ii) any such consultant   or independent contractor that has provided professional services to the Company, such as legal, financial   or accounting services; provided, however, the Owner will not be deemed to have violated this Section 2(a)   if any Covered Party Personnel voluntarily and independently solicits an offer of employment from such   employer by responding to a general advertisement or solicitation program conducted by or on behalf of   such employer, or is subsequently hired by such employer, as long as the Owner has no involvement or   participation, either directly or indirectly, in the recruitment of, or the hiring process or decision with respect   to, such employee or consultant (and at the written request of a Covered Party provides an affidavit to that   effect).     

 

   TCO 361918551v2 3   (b) Non-Solicitation of Customers and Suppliers.  The Owner agrees that, during the   Restricted Period, the Owner will not, individually or on behalf of any other person or entity (other than a   Covered Party), directly or indirectly:   (i) (A) induce, attempt to induce, solicit or otherwise cause any Covered   Customer (as defined below) to (1) cease being a client or customer of or to not become a client or customer   of the Company, or (2) reduce the amount of business of such Covered Customer with the Company or   otherwise to discontinue or alter, in a manner adverse to the Company, such business relationship, (B)   otherwise interfere with, disrupt or attempt to interfere with, reduce or disrupt, the contractual relationship   between the Company and any Covered Customer, including, without limitation, influencing or attempting   to influence, for a purpose competitive with the products or services that are sold or provided by the   Company as of the date hereof, any Covered Customer to terminate or modify any written or oral agreement   with the Company, (C) otherwise divert any business from any Covered Customer with the Company, or   (D) solicit for business, provide services to, engage in or do business with, or become employed or retained   by, any Covered Customer for products or services that are the same as or substantially similar to, or   otherwise competitive with, the products or services that are sold or provided by the Company as of the   date hereof; or   (ii) interfere with or disrupt, or arrange to have any other person or entity   interfere with or disrupt, any person or entity that was a vendor, supplier, distributor, agent or other service   provider of, the Company as of the date hereof or during the one (1) year period prior to the date hereof,   for a purpose competitive with the products and services that are sold or provided by the Company as of   the date hereof.   For purposes of this Non-Competition Agreement, “Covered Customer” means any client or customer of   the Company as of the date hereof or during the one (1) year period immediately prior to the date hereof,   and any prospective client or customer to which the Company has actively marketed or has made or has   taken specific action to make a proposal within the one (1) year period prior to the date hereof.  In the case   of a government agency, “client or customer” includes the source selection officials or program office for   any applicable contract or program and all offices and personnel that report to or support such source   selection officials or program office, and each successor thereto (whether by reorganization or otherwise).   (c) Non-Disparagement.     (i) The Owner agrees that, during the Restricted Period, he will not engage in   any conduct that involves the making or publishing (including, without limitation, through electronic mail   distribution or online social media) of written or oral statements or remarks (including, without limitation,   the repetition or distribution of derogatory rumors, allegations, negative reports or comments) that are   disparaging, deleterious or damaging to the integrity, reputation or goodwill of one or more Covered Parties   or their respective management, officers, employees, independent contractors or consultants.  This   provision is not applicable to (A) truthful testimony obtained through subpoena, (B) any truthful   information provided pursuant to investigation by any governmental body, and shall not be construed to (1)   require the Owner to refrain from offering any testimony (whether by deposition, written interrogatory, at   trial, or otherwise) he may be required to offer in connection with any legal proceeding) or (2) restrict the   Owner from enforcing his rights under the Purchase Agreement or under any other agreements and   instruments executed in connection therewith.   (ii) By its acceptance hereof, the Buyer agrees that, during the Restricted   Period, it will instruct its officers and directors to not, and it will instruct each other Covered Party’s officers   and directors to not, engage in any conduct that involves the making or publishing (including, without   limitation, through electronic mail distribution or online social media) of written or oral statements or     

 

   TCO 361918551v2 4   remarks (including, without limitation, the repetition or distribution of derogatory rumors, allegations,   negative reports or comments) that are disparaging, deleterious or damaging to the integrity, reputation or   goodwill of the Owner.  This provision is not applicable to (A) truthful testimony obtained through   subpoena, (B) any truthful information provided pursuant to investigation by any governmental body, and   shall not be construed to (1) require the Buyer or any other Covered Party to refrain from offering any   testimony (whether by deposition, written interrogatory, at trial, or otherwise) it may be required to offer   in connection with any legal proceeding) or (2) restrict the Buyer from enforcing its rights under the   Purchase Agreement or under any other agreements and instruments executed in connection therewith. The   Buyer shall be responsible for any breach by its officers or directors, or by any other Covered Party’s   officers or directors, of the obligations set forth in this paragraph.   3. Confidentiality.   (a) Non-Disclosure.  The Owner will keep confidential and will not, except in the   performance of the Owner’s duties on behalf of any Covered Party, directly or indirectly, use, disclose,   reveal, publish, transfer or provide access to any and all Confidential Information.  As used in this Non-   Competition Agreement, “Confidential Information” means all material and information relating to the   business, affairs and assets of the Company, including material and information that concerns or relates to   the Company’s bidding and proposal, technical, computer hardware and software, administrative,   management, operational, data processing, financial, marketing, sales, human resources, business   development, strategic planning, and/or other business activities, regardless of whether such material and   information is maintained in physical, electronic, or other form, that is: (i)(A) gathered, compiled,   generated, produced, or maintained by such person or entity through its employees and agents, or provided   to such person or entity by its suppliers, service providers, customers or equity holders; and (B) intended   and maintained by such person or entity, or its suppliers, service providers, customers or equity holders to   be kept in confidence; or (ii) not generally known to the public by reason other than breach of this Non-   Competition Agreement or other misconduct.  Examples of “Confidential Information” include but are not   limited to bids, proposals, policies, specifications, procedures, software, programs, techniques, formulas,   trade secrets, analytical models, plans, processes, managerial methods and decisions, customer names and   lists, customer needs and requirements, cost and financial data, personnel files and other employee   information, drawings, charts, diagrams, graphs, contracts, reports, manuals, handbooks, policies,   proposals, worksheets, correspondence, memoranda, and forms.   (b) Exceptions.  The obligations set forth in Section 3(a) hereof will not apply to any   information that would otherwise constitute Confidential Information but that the Owner can reasonably   demonstrate: (i) is known or available through other lawful sources not bound by a confidentiality   agreement with, or other confidentiality obligation to, the Company; (ii) is or becomes publicly known or   generally known through no fault of, or other wrongdoing by, the Owner or the Owner’s affiliates or agents;   (iii) is already in the possession of the person or entity receiving the information through lawful sources,   not bound by a confidentiality agreement or other confidentiality obligation, and through no fault of the   Owner or the Owner’s affiliates or agents; (iv) the Buyer agrees in writing may be disclosed; or (v) is   required to be disclosed pursuant to an order of any administrative body or court of competent jurisdiction   (provided that, if possible, (A) the Company is given reasonable prior written notice, (B) the Owner   cooperates (and causes the Owner’s affiliates and agents to cooperate), at the Buyer’s expense, with any   reasonable request of the Buyer to seek to prevent or narrow such disclosure and (C) if after compliance   with clauses (A) and (B) such disclosure is still required, the Owner and the Owner’s affiliates and agents   only disclose such portion of the Confidential Information that is expressly required by such order, as it   may be subsequently narrowed).   4. Exceptions.  Notwithstanding any provision of this Agreement to the contrary, the Owner   shall not be prohibited or restricted by this Agreement from performing or engaging in any of the following:      

 

   TCO 361918551v2 5   (a) serving as a director of a private or public company primarily engaged in the business of providing   products or services to any agency, branch or instrumentality of the United States Government or any state   or local government, or (b) serving as an officer, member or director of a non-profit organization, trade   association, task force, industry group or governmental advisory board primarily engaged in matters related   to the provision of products or services to any agency, branch or instrumentality of the United States   Government or any state or local government.     5. Representations and Warranties.  The Owner represents and warrants, to and for the   benefit of the Covered Parties, that: (a) the Owner has full power and capacity to execute and deliver, and   to perform all of the Owner’s obligations under, this Non-Competition Agreement; and (b) neither the   execution and delivery of this Non-Competition Agreement nor the performance of the Owner’s obligations   hereunder will result directly or indirectly in a violation or breach of any agreement or obligation by which   the Owner is bound.  By entering into this Non-Competition Agreement, the Owner certifies and   acknowledges that he has carefully read all of the provisions of this Non-Competition Agreement, and that   the Owner voluntarily and knowingly enters into this Non-Competition Agreement.   6. Remedies.  The Owner agrees that, in the event of any breach or threatened breach by the   Owner of any covenant or obligation contained in this Non-Competition Agreement, each applicable   Covered Party will be entitled (in addition to any other remedy at law or in equity that may be available,   including monetary damages) to seek the following in addition to such other remedies as the Covered Party   may seek and a court of competent jurisdiction may award: (a) an injunction restraining such breach or   threatened breach, without the necessity of proving actual damages or posting bond or security, which the   Owner expressly waives; and (b) recovery of the Covered Party’s attorneys’ fees and costs incurred in   enforcing the Covered Party’s rights under this Non-Competition Agreement.  The Owner hereby consents   to the award of any of the above remedies in connection with any such breach.  The Owner hereby   acknowledges and agrees that in the event of any breach of this Agreement, the portion of the consideration   delivered to the “Seller” under the Purchase Agreement which is allocated by the parties thereto to this   Agreement shall not be considered a measure of, or a limit on, the damages of the Covered Parties.   7. Integration and Non-Exclusivity.  This Non-Competition Agreement and the Purchase   Agreement and the documents referenced herein and therein contain the entire agreement between the   Owner and the Covered Parties concerning its subject matter and no other representations, promises,   agreements or understandings, written or oral, concerning such subject matter will be of any force or effect.    Notwithstanding the foregoing, the rights and remedies of the Covered Parties under this Non-Competition   Agreement are not exclusive of or limited by any other rights or remedies which they may have, whether   at law, in equity, by contract or otherwise, all of which will be cumulative (and not alternative).  Without   limiting the generality of the foregoing, the rights and remedies of the Covered Parties, and the obligations   and liabilities of the Owner, under this Non-Competition Agreement, are in addition to their respective   rights, remedies, obligations and liabilities (i) under the laws of unfair competition, misappropriation of   trade secrets, or other requirements of statutory or common law, or any applicable rules and regulations and   (ii) conferred by contract, including the Purchase Agreement and any other written agreement between the   Owner and any of the Covered Parties.  Nothing in the Purchase Agreement will limit any of the obligations,   liabilities, rights or remedies of any party, nor will any breach of the Purchase Agreement or any other   agreement between the Owner and any of the Covered Parties limit or otherwise affect any right or remedy   of the Covered Parties.  Nothing in this Non-Competition Agreement shall supersede or otherwise negate   any post-employment confidentiality, nondisclosure, nonsolicitation, noninterference, intellectual property   or noncompetition obligations imposed by any other agreement between the Owner and any of the Covered   Parties.   8. Severability; Independent Covenants; Blue Penciling.     

 

   TCO 361918551v2 6   (a) Severable Provisions.  If any provision of this Non-Competition Agreement, or   any part thereof, is found or held to be invalid or unenforceable in any jurisdiction, then (i) such provision   or part thereof will be deemed amended to conform to applicable laws so as to be valid and enforceable to   the fullest possible extent, (ii) the invalidity or unenforceability of such provision or part thereof will not   affect the validity or enforceability of such provision or part thereof under any other circumstances or in any   other jurisdiction, and (iii) the invalidity or unenforceability of such provision or part thereof will not affect   the validity or enforceability of the remainder of such provision or the validity or enforceability of any other   provision of this Non-Competition Agreement.  Each provision and part thereof of this Non-Competition   Agreement is separable from every other provision and part thereof of this Non-Competition Agreement.   (b) Independent Covenants. Each of the covenants in this Non-Competition   Agreement will be construed as an agreement independent of any other agreement and independent of any   other provision of this Non-Competition Agreement, and the existence of any claim or cause of action will   not constitute a defense to the enforcement of such covenants.   (c) Reformation.  If any court of competent jurisdiction determines that any part hereof   is unenforceable because of the duration, geographic area covered, scope of such provision, or otherwise,   such court will have the power to reduce the duration, geographic area covered or scope of such provision,   as the case may be, and, in its reduced form, such provision will then be enforceable.  The Owner will, at   the Buyer’s request, join the Buyer in requesting that such court take such action.   9. Governing Law; Jurisdiction; Venue; WAIVER OF JURY TRIAL.     (a) Law.  This Non-Competition Agreement will be construed, enforced and governed   by the laws of the State of Maryland without regard to its conflicts of law provisions.   (b) Jurisdiction; Venue; Waiver of Jury Trial.  The Owner agrees that any legal action   or other legal proceeding arising out of or relating to this Non-Competition Agreement may be brought in   any state or federal court of proper jurisdiction serving Montgomery County, Maryland (or in any court in   which appeal from such courts may be taken) (the “Specified Courts”).  The Owner:   (i) agrees that any Specified Court will be deemed to be a convenient forum;   (ii) after valid service of process has been effected, agrees not to assert in any   such legal proceeding commenced in any Specified Court, any claim that the Owner is not subject   to personal jurisdiction of such court, that such legal proceeding has been brought in an   inconvenient forum, that the venue of such proceeding is improper or that this Non-Competition   Agreement may not be enforced in or by such court; and   (iii) HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY   IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT TO ANY   LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION   WITH THIS NON-COMPETITION AGREEMENT.    10. Waiver.  Any delay or omission by a party in exercising its rights under this Non-   Competition Agreement, or failure to insist upon strict compliance with any term, covenant, or condition   of this Non-Competition Agreement will not be deemed a waiver of such term, covenant, condition or right,   nor will any waiver or relinquishment of any right or power under this Non-Competition Agreement at any   time or times be deemed a waiver or relinquishment of such right or power at any other time or times.  No   waiver will be effective unless it is expressly set forth in a written instrument executed by the waiving party   and any such waiver will have no effect except in the specific instance in which it is given.     

 

   TCO 361918551v2 7   11. Successors and Assigns.  This Non-Competition Agreement will be binding upon the   Owner and the Owner’s estate, successors and assigns, and will inure to the benefit of the Covered Parties,   and their respective successors and assigns.  Each Covered Party may freely assign any or all of its rights   under this Non-Competition Agreement, at any time, in whole or in part, to any person or entity which   purchases a majority of or all of the equity securities (whether by equity sale, merger or otherwise) or   substantially all of the assets of such Covered Party, without obtaining the consent or approval of the Owner.    The Owner agrees that the obligations of the Owner under this Non-Competition Agreement are personal   and will not be assigned by the Owner.   12. Third Party Beneficiaries.  Each of the Buyer’s and the Company’s present and future   Affiliates, successors and direct and indirect subsidiaries are third party beneficiaries to all of the rights   conferred to the Covered Parties by the Owner under this Non-Competition Agreement and, as such, are   entitled to enforce the terms and restrictions contained herein.   13. Construction.  The Owner acknowledges that he has been represented by counsel, or had   the opportunity to be represented by counsel of his choice.  Any rule of construction to the effect that   ambiguities are to be resolved against the drafting party will not be applied in the construction or   interpretation of this Non-Competition Agreement.  Neither the drafting history nor the negotiating history   of this Non-Competition Agreement will be used or referred to in connection with the construction or   interpretation of this Non-Competition Agreement.   14. Survival of Obligations.  The expiration of the Restricted Period will not relieve the   Owner of any obligation or liability arising from any breach by the Owner of this Non-Competition   Agreement during the Restricted Period.  The Owner further agrees that the time period during which the   covenants contained in Section 1 and Section 2 will be effective will be computed by excluding from such   computation any time during which the Owner is in violation of any provision of such Sections.   15. Amendment.  This Non-Competition Agreement may not be changed in any respect,   except by a written agreement executed by the Owner and the Buyer (or any successor or assign).   16. Notices.  All notices, requests, demands and other communications pertaining to this Non-   Competition Agreement or otherwise required or permitted hereunder (“Notices”) must be in writing   addressed as follows:   (a) If to the Owner, to the address below the Owner’s name on the signature page to   this Non-Competition Agreement; and   (b) If to the Buyer (or any other Covered Party): DLH Holdings Corp., 3565 Piedmont   Road, Suite 3-700, Atlanta, Georgia, Attn: Chief Executive Officer, with a copy to (that will not constitute   notice) Holland & Knight LLP, 1600 Tysons Boulevard, Suite 700, McLean, Virginia 22102, Attention:   Adam J. August, Facsimile: (703) 720-8610, E-Mail: adam.august@hklaw.com.   Notices will be deemed given on the first business day (which means a day, other than a Saturday or Sunday,   on which commercial banks in Washington, DC are open for the general transaction of business) after being   sent, prepaid, by nationally recognized overnight courier that issues a receipt or other confirmation of   delivery.  Notices delivered via facsimile or electronic-mail/e-mail will be deemed given when actually   received (or refused) by the recipient.  Notices delivered by personal service will be deemed given when   actually received by the recipient.  Any party may change the address to which Notices under this Non-   Competition Agreement are to be sent to it by giving written notice of a change of address in the manner   provided in this Non-Competition Agreement for giving notice.     

 

   TCO 361918551v2 8   17. Electronic Signature.  This Non-Competition Agreement may be executed by transfer of   an originally signed document by facsimile, e-mail in PDF format, or other electronic means, each of which   will be as fully binding as an original document.   (Signature appears on following page.)     

 

   {N0110078  } Signature Page to Non-Competition Agreement   TCO 361918551v2    IN WITNESS WHEREOF, the Owner has duly executed and delivered this Non-Competition   Agreement as of the date first above written.   Jeffrey Hoffman, individually          /s/ Jeffrey Hoffman              Address:                            Telephone No.: ( )          Facsimile No.:  ( )          Electronic mail: ( )                                     #37894629_v4

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