Document:

NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN THE
SUBJECT OF REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER
THE SECURITIES LAWS OF ANY STATE, AND THE SAME HAVE BEEN (OR WILL BE, WITH
RESPECT TO THE SECURITIES ISSUABLE UPON EXERCISE HEREOF) ISSUED IN RELIANCE ON
EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. NEITHER
THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED
UNDER SUCH SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM.

      

      WARRANT TO PURCHASE COMMON STOCK

      OF

      The KEYW
Holding Corporation

       

      Warrant
No.: [__]

      Number of
Shares of Common Stock: [____________]

      Date of
Issuance: [____________] (the “Original Issuance
Date”)

       

      The KEYW
Holding Corporation, a Maryland corporation (the “Company”), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, [_____________________], the registered holder
hereof or his permitted assigns (the “Holder”), is
entitled, subject to the terms set forth below, to purchase from the Company, at
the Exercise Price (as defined below), upon surrender of this Warrant to
Purchase Common Stock (including any Warrants to Purchase Common Stock issued in
exchange, transfer or replacement hereof, the “Warrant”), on any
Exercisability Date (as defined below), but not after 11:59 p.m., New York Time,
on the Expiration Date (as defined below) [______________] fully paid and
nonassessable shares of Common Stock (as defined below) (the “Warrant
Shares”).  Except as otherwise defined herein, capitalized
terms in this Warrant shall have the meanings set forth in Section
14.  This Warrant is one of a series of warrants (the “Subscription
Warrants”) issued pursuant to those certain Subscription Agreements, for
this Holder executed prior to [____________] (the “Subscription Date”),
in each case by and between the Company and the Holder party thereto (the “Subscription
Agreement”).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION 1.               EXERCISE OF
WARRANT.

       

      (a)           Mechanics of
Exercise.  Subject to the terms and conditions hereof, this
Warrant may be exercised by the Holder on any Exercisability Date, in whole or
in part (but not as to fractional shares), by (i) delivery of a written notice
in the form attached hereto as Exhibit A (the “Exercise Notice” ) of
the Holder’s election to exercise this Warrant and (ii) payment to the Company
of an amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise
Price”) in cash or wire transfer of immediately available
funds.  The Holder shall not be required to surrender this Warrant in
order to effect an exercise hereunder, provided that this Warrant is surrendered
to the Company on or before the second Business Day following the date on which
the Company has received each of the Exercise Notice and the Aggregate Exercise
Price (the “Exercise
Delivery Documents”).  On or before the first Business Day
following the date on which the Company has received each of the Exercise
Delivery Documents, the Company shall transmit by facsimile an acknowledgment of
confirmation of receipt of the Exercise Delivery Documents to the Holder and to
the Company.  On or before the third Business Day following the date
on which the Company has received all of the Exercise Delivery Documents and
after the Company shall have received this Warrant (the “Share Delivery
Date”), the Company shall issue and dispatch by overnight courier to the
address as specified in the Exercise Notice, a certificate, registered in the
Company’s share register in the name of the Holder or its designee, for the
number of shares of Common Stock to which the Holder is entitled pursuant to
such exercise.  Upon delivery of the Exercise Delivery Documents and
surrender of this Warrant, the Holder shall be deemed for all corporate purposes
to have become the holder of record of the Warrant Shares with respect to which
this Warrant has been exercised, irrespective of the date of delivery of the
certificates evidencing such Warrant Shares.  If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a) and the
number of Warrant Shares represented by this Warrant submitted for exercise is
greater than the number of Warrant Shares being acquired upon an exercise, then
the Company shall as soon as practicable and in no event later than five
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 7(d))
representing the right to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant, less the number of
Warrant Shares with respect to which this Warrant is exercised.

       

      (b)           Exercise
Price.  For purposes of this Warrant, “Exercise Price” means
$5.50 per share of Common Stock, subject to adjustment as provided
herein.

       

      (c)      
     Exercisability
Date.  For purposes of this Warrant, “Exercisability Date”
means any date on or after July 31, 2009, or such earlier date as the
Board of Directors of the Company may notify the Holder in writing.

       

      (d)           Notwithstanding
any provisions herein to the contrary, if the fair market value of one share of
the Company’s Common Stock is greater than the Warrant Exercise Price (at
the date of calculation as set forth below), in lieu of exercising this Warrant
for cash or cancellation of indebtedness of the Company to the Holder,
the Holder may elect a “Net Issue Exercise” pursuant to which it will
receive shares equal to the value (as determined below) of this Warrant (or the
portion thereof being exercised) by surrender of this Warrant at the principal
office of the Company together with the properly
endorsed Exercise Notice in which event the Company shall issue to
the Holder a number of shares of Common Stock computed using the
following formula:

       

      
        
          
            	
                    X
      =

                  	
                    Y (A-B)

                  
	 
      	
                    A

                  

          

        

      

      

      Where X
=        the number of shares
of Common Stock to be issued to the Registered Holder

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Y=          the
number of shares of Common Stock purchasable under the Warrant or, if only
a portion of the Warrant is being exercised, the portion of the Warrant being
exercised (at the date of such exercise)

       

      A
=        the fair market value of one
share of the Company’s Common Stock (as calculated below)

       

      B
=         Warrant Exercise Price
(as adjusted to the date of such exercise).

       

      For
purposes of the above calculation, the fair market value of one share
of Common Stock shall be determined by the Company’s Board of Directors in
good faith; provided,
however, that where there is a public market for the
Company’s Common Stock, the fair market value per share shall be the
average of the closing prices of the Company’s Common Stock quoted on any
exchange on which the Common Stock is listed, whichever is applicable, over
the five (5) trading day period ending on the trading day immediately preceding
the day the Warrant is being exercised.

       

      SECTION 2.               ADJUSTMENT OF EXERCISE PRICE
AND NUMBER OF WARRANT SHARES.  The Exercise Price and the
number of Warrant Shares shall be adjusted from time to time as
follows:

       

      (a)           Adjustment
upon Subdivision or Combination of shares of Common Stock.  If the
Company at any time on or after the Subscription Date subdivides (by any stock
split, stock dividend, recapitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Exercise
Price in effect immediately prior to such subdivision will be proportionately
reduced and the number of Warrant Shares will be proportionately
increased.  If the Company at any time on or after the Subscription
Date combines (by combination, reverse stock split or otherwise) one or more
classes of its outstanding shares of Common Stock into a smaller number of
shares, the Exercise Price in effect immediately prior to such combination will
be proportionately increased and the number of Warrant Shares will be
proportionately decreased.  Any adjustment under this Section 2(a) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

       

      (b)           If
any event occurs of the type contemplated by the provisions of Section 2(a) but not
expressly provided for by such provisions (including, without limitation, the
granting of stock appreciation rights, phantom stock rights or other rights with
equity features to the holders of the Company’s equity securities), then the
Company’s Board of Directors will make an appropriate adjustment in the Exercise
Price and the number of Warrant Shares so as to protect the rights of the
Holder; provided that no such adjustment pursuant to this Section 2(b) will
increase the Exercise Price or decrease the number of Warrant Shares as
otherwise determined pursuant to this Section
2.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION 3.               RIGHTS UPON DISTRIBUTION OF
ASSETS.  If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of
shares of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off, reclassification, corporate
rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at
any time after the issuance of this Warrant, then, in each such
case:

       

      (a)           the
Exercise Price shall be reduced, effective as of the close of business of the
record date fixed for the determination of holders of shares of Common Stock
entitled to receive the Distribution, to a price determined by multiplying the
Exercise Price by a fraction of which (i) the numerator shall be the Exercise
Price minus the value of the Distribution (as determined in good faith by the
Company’s Board of Directors) applicable to one share of Common Stock and (ii)
the denominator shall be the Exercise Price; and

       

      (b)           the
number of Warrant Shares shall be increased to a number of shares equal to the
number of shares of Common Stock obtainable immediately prior to the close of
business on the record date fixed for the determination of holders of shares of
Common Stock entitled to receive the Distribution multiplied by the reciprocal
of the fraction set forth in the immediately preceding paragraph
(a).

       

      SECTION 4.               NET ISSUE
EXERCISE.  This Warrant (together with all of the other
Subscription Warrants)  shall be deemed to be exercised by “Net Issue
Exercise” automatically pursuant to the provisions of Section 1(d), without any
further action on the part of the Holder, upon the occurrence of any of the
following:

       

      (a)           immediately prior
to the consummation of any sale of all or substantially all of the
Company's assets;

       

      (b)           immediately prior
to the consummation the sale of more than 80% of the then outstanding
shares of the Company's stock; or 

       

      (c)           immediately
prior to the consummation of any transaction that the Board and, if
applicable, the Company's stockholders have approved and
which transaction is declared by the Board to be
a "Net Issue Exercise” transaction; provided, however, that the
Holder may elect, upon written notice to the Company prior to the
consummation of the transaction under this clause (c), to retain this
Warrant and not have it be deemed to be exercised by “Net Issue Exercise”
if the transaction does not include any cash payment to
shareholders (an “Exempt Transaction”).  Upon the occurrence of any
Exempt Transaction in which this Warrant is not then exercised, the provisions
of this Warrant referring the Company shall refer instead to the Successor
Entity and the Successor Entity shall assume all of the obligations of the
Company herein, and the Company shall make provisions to ensure that the Holder
will have the right to receive, upon exercise of this Warrant, an equivalent
amount of securities which, for avoidance of doubt, will not include any cash
payment.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION 5.               NONCIRCUMVENTION.  The
Company hereby covenants and agrees that the Company will not, by amendment of
its Articles of Incorporation, Bylaws or through any reorganization, transfer of
assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, and will at all
times in good faith carry out all the provisions of this Warrant and take all
action as may be required to protect the rights of the
Holder.  Without limiting the generality of the foregoing, the Company
(i) shall not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant above the Exercise Price then in effect, (ii)
shall take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant and (iii) shall, so long as any
of the Subscription Warrants are outstanding, take all action necessary to
reserve and keep available out of its authorized and unissued shares of Common
Stock, solely for the purpose of effecting the exercise of the Subscription
Warrants, the number of shares of Common Stock as shall from time to time be
necessary to effect the exercise of the Subscription Warrants then outstanding
(without regard to any limitations on exercise).

       

      SECTION 6.               WARRANT HOLDER NOT DEEMED A
STOCKHOLDER.

       

      (a)           Except
as otherwise specifically provided herein, prior to the issuance to the Holder
of the Warrant Shares which such Person is then entitled to receive upon the due
exercise of this Warrant, the Holder, solely in such Person’s capacity as a
holder of this Warrant, shall not be entitled to (i) vote or receive dividends,
(ii) be deemed the holder of Common Stock for any purpose, (iii) any of the
rights of a stockholder of the Company (including any right to vote, give or
withhold consent to any corporate action) or (iv) receive notice of meetings,
receive dividends or subscription rights, or otherwise.

       

      (b)           Nothing
contained in this Warrant shall be construed as imposing any liabilities on the
Holder to purchase any securities (upon exercise of this Warrant or otherwise)
or as a stockholder of the Company, whether such liabilities are asserted by the
Company or by creditors of the Company.

       

      SECTION 7.               REISSUANCE OF
WARRANTS.

       

      (a)           Transfer of
Warrant.  This Warrant may be offered for sale, sold,
transferred or assigned without the consent of the Company, except as may
otherwise be required by applicable securities laws or the Stockholders’
Agreement.  Subject to applicable securities laws, if this Warrant is
to be transferred, the Holder shall surrender this Warrant to the Company
together with all applicable transfer taxes, whereupon the Company will
forthwith issue and deliver upon the order of the Holder a new Warrant (in
accordance with Section 7(d)),
registered as the Holder may request, representing the right to purchase the
number of Warrant Shares being transferred by the Holder and, if less then the
total number of Warrant Shares then underlying this Warrant is being
transferred, a new Warrant (in accordance with Section 7(d)) to the
Holder representing the right to purchase the number of Warrant Shares not being
transferred.

       

      (b)           Lost, Stolen or Mutilated
Warrant.  Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form or
the provision of reasonable security by the Holder to the Company and, in the
case of mutilation, upon surrender and cancellation of this Warrant, the Company
shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d))
representing the right to purchase the Warrant Shares then underlying this
Warrant.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (c)           Exchangeable for Multiple
Warrants.  This Warrant is exchangeable, upon the surrender
hereof by the Holder at the principal office of the Company together with all
applicable transfer taxes, for a new Warrant or Warrants (in accordance with
Section 7(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that the Company shall not be
required to issue Warrants for fractional shares of Common Stock
hereunder.

       

      (d)           Issuance of New
Warrants.  Whenever the Company is required to issue a new
Warrant pursuant to the terms of this Warrant, such new Warrant shall (i) be of
like tenor with this Warrant, (ii) represent, as indicated on the face of such
new Warrant, the right to purchase the Warrant Shares then underlying this
Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the
Warrant Shares designated by the Holder which, when added to the number of
shares of Common Stock underlying the other new Warrants issued in connection
with such issuance, does not exceed the number of Warrant Shares then underlying
this Warrant), (iii) have an issuance date as indicated on the face of such new
Warrant which is the same as the Original Issuance Date and (iv) have the same
rights and conditions as this Warrant.

       

      SECTION 8.               NOTICES.  Whenever
notice is required to be given under this Warrant, unless otherwise provided
herein, such notice shall be given by certified mail or facsimile to the Holder
or the Company at the address set forth in the Subscription Agreement between
the Company and the Holder.  The Company shall provide the Holder with
prompt written notice of all actions taken pursuant to this Warrant, including,
in reasonable detail, a description of such action and the reason or reasons
therefor.  Without limiting the generality of the foregoing, the
Company will give written notice to the Holder (i) immediately upon any
adjustment of the Exercise Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment and (ii) at least ten days prior
to the date on which the Company closes its books or takes a record (A) with
respect to any dividend or distribution upon the shares of Common Stock, (B)
with respect to any grants, issuances or sales of any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property
to holders of shares of Common Stock or (C) for determining rights to vote with
respect to any Fundamental Transaction, dissolution or liquidation.

       

      SECTION 9.               AMENDMENT AND
WAIVER.  Except as otherwise provided herein, the provisions of
this Warrant may be amended and the Company may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if the Company has obtained the written consent of the Required Holders;
provided that no such action may increase the exercise price of any Subscription
Warrant or decrease the number of shares or change the class of stock obtainable upon
exercise of any Subscription Warrant without the written consent of the
Holder.  No such amendment shall be effective to the extent that it
applies to less than all of the holders of the Subscription Warrants then
outstanding.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      SECTION 10.               GOVERNING
LAW.  This Warrant shall be governed by and construed and
enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by,
the internal laws of the State of Maryland, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of Maryland or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of Maryland.

       

      SECTION 11.               HEADINGS.  The
headings of this Warrant are for convenience of reference and shall not form
part of, or affect the interpretation of, this Warrant.

       

      SECTION 12.               DISPUTE
RESOLUTION.  In the case of a dispute as to the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations to
the Holder within two Business Days of receipt of the Exercise Notice giving
rise to such dispute.  If the Holder and the Company are unable to
agree upon such determination or calculation of the Exercise Price or the
Warrant Shares within five Business Days of such disputed determination or
arithmetic calculation being submitted to the Holder, then the Company shall,
within two Business Days submit (a) the disputed determination of the Exercise
Price to an independent, reputable investment bank selected by the Company and
approved by the Holder or (b) the disputed arithmetic calculation of the Warrant
Shares to the Company’s independent, outside accountant.  The Company
shall cause the investment bank or the accountant, as the case may be, to
perform the determinations or calculations and notify the Company and the Holder
of the results no later than ten Business Days from the time it receives the
disputed determinations or calculations.  Such investment bank’s or
accountant’s determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error.  The expenses of the
investment bank and accountant will be borne by the Company unless the
investment bank or accountant determines that the determination of the Exercise
Price or the arithmetic calculation of the Warrant Shares by the Holder was
incorrect, in which case the expenses of the investment bank and accountant will
be borne by the Holder.

       

      SECTION 13.               REMEDIES, OTHER OBLIGATIONS,
BREACHES AND INJUNCTIVE RELIEF.  The remedies provided in this
Warrant shall be cumulative and in addition to all other remedies available
under this Warrant and the Subscription Agreement, at law or in equity
(including a decree of specific performance and/or other injunctive
relief).

       

      SECTION 14.               SETTLEMENT.  This
Warrant is intended to be settled by the Company in unregistered shares of the
Company’s Common Stock although the Company reserves the right, at its sole
option, to settle this Warrant in registered shares of the Company’s Common
Stock.  It is the Company’s intent that, once shares of the Company’s
Common Stock are registered on a national securities exchange, it will settle
this Warrant in registered shares of the Company’s Common Stock.

       

      SECTION 15.               CERTAIN
DEFINITIONS.  For purposes of this Warrant, the following terms
shall have the following meanings:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      “Business Day” means
any day other than Saturday, Sunday or other day on which commercial banks in
the State of Maryland are authorized or required by law to remain
closed.

       

      “Common Stock” means
the Company’s Common Stock, $0.001 par value per share.

       

      “Convertible
Securities” means any stock or securities (other than Options) directly
or indirectly convertible into or exercisable or exchangeable for shares of
Common Stock.

       

      “Expiration Date”
means the seventh anniversary of the Original Issuance Date or, if such date
falls on a day other than a Business Day, the next Business Day.

       

      “Options” means any
rights, warrants or options to subscribe for or purchase shares of Common Stock
or Convertible Securities.

       

      “Person” means an
individual, a limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other entity and a
government or any department or agency thereof.

       

      “Required Holders”
means the holders of the Subscription Warrants representing at least a majority
of shares of Common Stock underlying the Subscription Warrants then
outstanding.

       

      “Successor Entity”
means the Person formed by, resulting from or surviving any Exempt Transaction
or the Person with which such Exempt Transaction shall have been entered
into.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common Stock to
be duly executed as of the Original Issuance Date.

       

      
        
          
            
              	 
      	
                      THE
      KEYW HOLDING CORPORATION

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                        

                    
	 
      	
                      Name: 

                    	
                      Leonard
      E. Moodispaw

                    
	 
      	
                      Title:

                    	
                      Chief
      Executive
Officer

                    

            

          

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
A

       

      EXERCISE
NOTICE TO

      WARRANT
TO PURCHASE COMMON STOCK OF

      THE KEYW
HOLDING CORPORATION

       

      The
undersigned holder hereby exercises the right to purchase _________________ of
the shares of Common Stock (“Warrant Shares”) of
The KEYW Holding Corporation, a Maryland corporation (the “Company”), evidenced
by the attached Warrant to Purchase Common Stock (the “Warrant”).  Capitalized
terms used herein and not otherwise defined shall have the meanings set forth in
the Warrant.

       

      1.           Exercise.  The
Holder intends to pay the sum of $___________________ to the Company in
accordance with the terms of the Warrant in connection with the exercise of the
Warrant for _____________ Warrant Shares.

       

      2.           Delivery of Warrant
Shares.  The Company shall deliver to the holder ____________
Warrant Shares in accordance with the terms of the Warrant upon receipt of the
payment referred to in Section
1.

       

      Date:
_______________ ___, 20___

       

      
        
          
            
              
                	 
      	
                        HOLDER

                      
	 
      	 
      	 
      
	 
      	
                        By:

                      	
                           

                      
	 
      	
                        Name: 

                      	 
      
	 
      	
                        Title:

                      	
                        [state
      title only if Holder is not an
individual]

                      

              

            

          

        

      

      

      
        
          
            
              	
                      Acknowledged
      and agreed:

                    	 
      
	 	 
	
                      THE
      KEYW HOLDING CORPORATION

                    	 
      
	 	 
	
                      By:

                    	
                        

                    	 
      
	
                      Name: 

                    	
                      Leonard
      E. Moodispaw

                    	 
      
	
                       

                    	
                      Title:
      Chief Executive OfficerUnassociated Document

    CREDIT AND SECURITY
AGREEMENT

    

    THIS CREDIT AND SECURITY AGREEMENT
(this “Agreement”) is made
as of February 22, 2010 by and between (a) THE KEYW HOLDING CORPORATION, a
Maryland corporation (“HoldCo”), THE KEYW
CORPORATION, a Maryland corporation (the “Company”), INTEGRATED
COMPUTER CONCEPTS, INCORPORATED, a Maryland corporation (“ICCI”), THE ANALYSIS
GROUP, LLC, a Virginia limited liability company (“TAG”), and S&H
ENTERPRISES OF CENTRAL MARYLAND, INC., a Maryland corporation (“S&H” and
together with HoldCo, the Company, ICCI and TAG, the “Borrowers”), and (b)
BANK OF AMERICA, N.A., a national banking association (the “Lender”).

    

    RECITALS

    

    The Borrowers have requested that the
Lender make available to the Borrowers (a) a committed revolving credit facility
pursuant to which the Lender will make advances to the Borrowers from time to
time in an aggregate principal amount not to exceed Seventeen Million Five
Hundred Thousand Dollars ($17,500,000) at any one time outstanding, (b) an
uncommitted “accordion” facility pursuant to which the Lender may from time to
time make accordion advances (to increase the committed revolving credit
facility) in an aggregate principal amount not to exceed Ten Million Dollars
($10,000,000) and (c) a term loan in the original principal amount of Five
Million Dollars ($5,000,000).  The Lender has agreed to make these
credit facilities available to the Borrowers, subject to and upon the terms and
conditions hereinafter set forth.

    

    AGREEMENTS

    

    SECTION 1.  The Credit
Facilities.

    

    1.1.        Definitions.  All
capitalized terms used herein and not otherwise defined shall have the following
meanings:

    

    “ABR
Loan” means a Loan that bears interest at a rate based on the Prime-Based
Rate.

     

    “Accordion Advance” shall have the
meaning set forth in Section 1.3
hereof.

     

    “Accordion
Facility” shall mean the uncommitted credit facility established pursuant to
Section 1.3
hereof, in the amount of not more than Ten Million Dollars
($10,000,000).

     

     “Account
Debtor” means any Person who may become obligated to the Borrowers under, with
respect to, or on account of, an Account.

     

    “Accounts”
has the meaning given to such term in the Uniform Commercial Code.

    

    “Additional
Financing Documents” has the meaning set forth in Section 1.5(e)(4)
hereof.

     

    “Advance/Continuation
Request” has the meaning set forth in Section 1.2(a) hereof.

     

    KEYW and
Subsidiaries

    Credit
and Security Agreement

 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Advances”
means advances made by the Lender to the Borrowers under the Revolving Credit
Facility.

     

    “Annualization Calculation” shall mean,
for a given financial covenant measurement, the following:  (i) for
the calendar quarter ended December 31, 2009, the particular item measured
(e.g., EBITDA, Fixed Charges, or Cash Flow) for such calendar quarter multiplied
by four (4); (ii) for the calendar quarter ended March 31, 2010, the sum of such
measurement for the fourth quarter of 2009 plus the measurement
for the first quarter of 2010 multiplied by two (2);  (iii) for the
calendar quarter ended June 30, 2010,  the sum of such measurement for
the fourth quarter of 2009 plus the measurement
for the first quarter of 2010 plus the measurement
for the second quarter of 2010 multiplied by four-thirds (4/3); and (iv) at all
times thereafter, the particular item measured on a trailing twelve-month
basis.  For the purposes of the Annualization Calculation, from and
after the acquisition of TAG and Insight, the particular items measured for TAG
and Insight, as applicable, shall include results from the entire quarter ending
December 31, 2009 and not just from the Closing Date.

    

    “Applicable
Margin” shall mean the margin added to the Eurodollar Base Rate to obtain the
interest rate for the outstanding Advances under the Revolving Credit Facility
set forth in the table attached hereto as Attachment
I.  The Applicable Margin during any calendar quarter shall be
set based upon the Borrowers’ ratio of Total Funded Debt to EBITDA as of the
last day of the immediately prior calendar quarter, and the Applicable Margin
shall be determined and adjusted quarterly on the first day of the first month
after the date by which the annual and quarterly compliance certificates and
related financial statements and information are required in accordance with the
provisions of this Agreement.

     

    “Asset Coverage Ratio” means, as of any
date of determination, the ratio of (a) the sum of (i) ninety percent (90%) of
Eligible Government Accounts, plus (ii) eighty
percent (80%) of Eligible Commercial Accounts,  plus (iii) fifty
percent (50%) of Eligible Unbilled Accounts up to a maximum of $5,000,000 to (b)
the sum of all of the outstanding Obligations to the Lender.

    

    “Board”
means the Board of Governors of the Federal Reserve System of the United
States.

     

    “Borrowers”
shall mean as set forth in the recitals.

    

    “Borrowing Base” means an amount equal
to the sum of (a) ninety percent (90%) of Eligible Government Accounts, plus (b) eighty
percent (80%) of Eligible Commercial Accounts,  plus (c) fifty
percent (50%) of Eligible Unbilled Accounts up to a maximum of $5,000,000, minus (d) the dollar
amount of Letter of Credit Exposure, and minus (e) such
reserves as Lender may from time to time establish in good faith on the basis of
its Field Exams and otherwise and upon written notice to the
Borrowers.

    

    “Borrowing Base Certificate” means a
borrowing base certificate in the form attached hereto as Exhibit
A.

    
       

      KEYW and
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      Credit
and Security Agreement
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

      

    “Borrowing Base Deficiency” has the
meaning set forth in Section 1.2(g) of this Agreement.

    “Breakage
Fees” means an amount equal to any net loss or out-of-pocket expenses which the
Lender sustains or incurs (including, without limitation, any net loss or
expense incurred by reason of the liquidation or re-employment of deposits or
other funds acquired by the Lender to fund or maintain the Advances, or any swap
breakage incurred in connection with any Hedge Agreement), as reasonably
determined by the Lender, as a result of any prepayment of any of the
Advances.

    

    “Business Day” means any day other than
a Saturday, Sunday or other day on which commercial banks in the State of
Maryland are authorized to close and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in Dollar deposits are conducted by
and between banks in the London interbank eurodollar market.

    

    “Capital
Lease” means any lease that has been or should be capitalized on the books of
the Borrowers in accordance with GAAP.

     

    “Capital Stock” means corporate stock
and any and all securities, shares, partnership interests, limited partnership
interests, corporation interests, membership interests, equity interests,
participations, rights or other equivalents (however designated) of corporate
stock or any of the foregoing issued by any entity (whether a corporation, a
partnership, a corporation or another entity) and includes, without limitation,
securities convertible into Capital Stock and rights or options to acquire
Capital Stock.

    

    “Cash Flow” shall mean the sum of
EBITDA plus lease and/or rent expense, minus dividends, withdrawals and other
distributions, minus cash taxes, minus any earnout payments, minus the dollar
value of any equity repurchase, and minus any capital expenditures, measured in
accordance with the Annualization Calculation.

    

    “Change in Control” shall mean any
circumstance in which a change shall occur in the control or ownership
(beneficially or otherwise) of more than 30% (by number of shares) of the issued
and outstanding Capital Stock of any Borrower after the date of this
Agreement.

    

    “Claim”
has the meaning given to such term in Section 7.9(a) of this
Agreement.

     

    “Closing
Date” means the date on which all conditions to closing as set forth in Section
2.1 of this Agreement are satisfied.

     

    “Collateral” means the specific items
of the Borrowers’ personal property, both now owned and hereafter acquired,
identified in subsections (a) through (c) below:

     

    
      	
               
      

            	
              (a)

            	
              Accounts,
      including, without limitation, all collateral security of any kind given
      to any Account Debtor or other Person with respect to any
      Account;

            

    

    
      	
               
      

            	
              (b)

            	
              Deposit
      Accounts at the Lender; and

            

    

    
      	
               
      

            	
              (c)

            	
              all
      proceeds and products of any of the
foregoing.

            

    

    

    “Collateral Account” has the meaning
set forth in Section 7.5 of this Agreement.

     

    
      KEYW and
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      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Collection Account” means the
collection account established pursuant to this Agreement.

     

    “Contribution Agreement” has the
meaning set forth in Section 2.1(g) of this Agreement.

     

    “Credit Facilities” means the Revolving
Credit Facility, the Term Loan and any other credit facilities established
subsequently hereto.

    

    “Default”
has the meaning set forth in Section 6 of this Agreement.

     

    “Default Rate” means a floating and
fluctuating per annum rate of interest calculated by adding the sum of four
percent (4.0%) to the rate of interest otherwise then in effect.

     

    “Deposit Accounts” has the meaning
given to such term in the Uniform Commercial Code.

    

    “Dollar” and “$” mean lawful money
of the United States.

    

    “EBITDA” shall mean (a) net income,
after income tax, (b) less income or plus loss from discontinued operations and
extraordinary items, (c) plus interest expense on all obligations, (d) plus
taxes, (e) plus depreciation, (f) plus non-cash charges included in the
calculation of net income, (g) less non-cash gains included in the calculation
of net income, (h) plus or minus the one-time adjustments listed on Exhibit C
attached hereto (but only through the period ending on September 30, 2010), and
(i) plus amortization, measured in accordance with the Annualization
Calculation.

    

    “Eligible
Account” means, at any date of determination, each Account of the Borrowers
which satisfies each of the following requirements or conditions:  (a)
such Account complies with all applicable laws, including, without limitation,
usury laws, the Federal Truth in Lending Act and Regulation Z of the Board of
Governors of the Federal Reserve System; (b) such Account, at the date of
issuance of its invoice, was payable not more than 90 days after the original
date of issuance of the invoice therefor; (c) such Account has not been
outstanding for more than 90 days past the date upon which such invoice was
issued; (d) such Account is not owed by an Account Debtor having 50% or more of
its invoices outstanding more than 90 days past the date upon which such
invoices were issued; (e) such Account was created in connection with the sale
of goods or the performance of services by the Borrowers in the ordinary course
of business and such goods or services have been delivered or performed, as
applicable; (f) such Account represents a legal, valid and binding payment
obligation of the Account Debtor enforceable in accordance with its terms and
arising from an enforceable contract; (g) the Borrowers have good and
indefeasible title to such Account and the Lender holds a perfected first
priority Lien on such Account pursuant to the Financing Documents; (h) such
Account does not arise out of a contract with, or an order from, an Account
Debtor that, by its terms (other than terms which are invalid under applicable
law), prohibits or makes void or unenforceable the grant of a security interest
to the Lender in and to such Account; (i) the amount of such Account included in
Eligible Accounts is not subject to any setoff, counterclaim, defense, dispute,
recoupment or adjustment other than normal discounts for prompt payment; (j) the
Account Debtor with respect to such Account is not insolvent or the subject of
any bankruptcy or insolvency proceeding and has not made an assignment for the
benefit of creditors, suspended normal business operations, dissolved,
liquidated, terminated its existence, ceased to pay its debts as they become due
or suffered a receiver or trustee to be appointed for any of its assets or
affairs; (k) such Account is not evidenced by chattel paper or instruments
unless the Lien on such chattel paper or instrument is a perfected first
priority Lien on such chattel paper or instrument in favor of the Lender
pursuant to the Financing Documents; (l) such Account is not owed by an
affiliate of the Borrowers; (m) such Account is payable in Dollars by the
Account Debtor; (n) the Account Debtor is not domiciled in or organized under
the laws of any country other than the United States of America, unless such
Account is fully secured by credit insurance acceptable to the Lender, or a
letter of credit issued or confirmed by a bank acceptable to the Lender and
which has capital and surplus exceeding $100,000,000 and such letter of credit
contains terms and conditions reasonably acceptable to the Lender; (o) the
Account Debtor with respect to such Account is not located in New Jersey,
Minnesota, West Virginia or any other state denying creditors access to its
courts in the absence of a notice of business activities report or other similar
filing, unless the Borrowers have either qualified as a foreign corporation
authorized to transact business in such state or has filed a notice of business
activities report or similar appropriate filing with the applicable state agency
for the then current year; (p) if such Account  arises pursuant to a
Government Contract, such Account shall be directly assigned to the Lender in
conformity with the Federal Assignment of Claims Act of 1940, as amended (unless
the Lender has waived such requirement with respect to such Account); and (q)
the Account meets such other criteria as the Lender shall from time to time
reasonably establish in good faith upon prior written notice to the Borrowers;
provided that any Account which is at any time an Eligible Account but which
subsequently fails to meet the criteria for an Eligible Account shall
immediately cease to be an Eligible Account.

     

    
      KEYW and
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      Credit
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    “Eligible
Commercial Account” means an Eligible Account that does not arise out of a
Government Contract.

    

    “Eligible
Government Account” means an Eligible Account that arises out of a Government
Contract.

    

    “Eligible
Unbilled Accounts” means, at any date of determination, each Account of a
Borrower that has not yet been billed to the Account Debtor but which (a) will
be billed in accordance with the Borrowers’ standard billing procedures within
thirty (30) days, (b) is attributable solely to timing differences for work
completed and costs incurred under Government Contracts, and (c) when billed,
shall constitute an Eligible Government Account, and (d) is not otherwise
reasonably determined in good faith to be unacceptable to the
Lender.

    

    “Enforcement
Costs” means all reasonable expenses, charges, recordation or other taxes, costs
and fees (including reasonable attorneys’ fees and expenses) of any nature
whatsoever advanced, paid or incurred by or on behalf of the Lender in
connection with (a) the collection or enforcement of this Agreement or any
of the other Financing Documents, (b) the creation, perfection,
maintenance, preservation, defense, protection, realization upon, disposition,
collection, sale or enforcement of all or any part of the Collateral, and
(c) the exercise by the Lender of any rights or remedies available to it
under the provisions of this Agreement, or any of the other Financing
Documents.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

      

    “Environmental Laws” means all laws,
statutes, rules, regulations or ordinances which relate to Hazardous Materials
and/or the protection of the environment or human health.

    “Equipment” means all of the Borrowers’
equipment, as such term is defined by the Uniform Commercial Code, together with
all additions, parts, fittings, accessories, special tools, attachments, and
accessions now and hereafter affixed thereto and/or used in connection
therewith, and all replacements thereof and substitutions therefor.

     

    “ERISA” means the Employee Retirement
Income Security Act of 1974.

     

    “Eurodollar
Base Rate” has the meaning specified in the definition of Eurodollar
Rate.

     

    “Eurodollar-Based
Rate” means a per annum rate of interest equal at all times to the sum of the
Eurodollar Rate plus the Applicable Margin.  The Eurodollar-Based Rate
shall change immediately and contemporaneously with each change in the
Eurodollar Rate.

     

    “Eurodollar
Rate” means for any Interest Period with respect to a Eurodollar Rate Loan, a
rate per annum determined by the Lender pursuant to the following
formula:

     

    
      
        
          
            	
                    Eurodollar
      Rate  =   

                  	
                                     Eurodollar
      Base
      Rate            

                    1.00
      – Eurodollar Reserve
Percentage

                  

          

        

      

    

    

    Where,

     

    “Eurodollar Base Rate”
means, for such Interest Period the rate per annum equal to the British Bankers
Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Lender from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at such time for any reason,
then the “Eurodollar
Base Rate” for such Interest Period shall be the rate per annum
determined by the Lender to be the rate at which deposits in Dollars for
delivery on the first day of such Interest Period in same day funds in the
approximate amount of the Eurodollar Rate Loan being made, continued or
converted by the Lender and with a term equivalent to such Interest Period would
be offered by the Lender’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the commencement of such Interest Period.

     

    “Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations
issued from time to time by the Board of Governors of the Federal Reserve System
of the United States for determining the maximum reserve requirement (including
any emergency, supplemental or other marginal reserve requirement) with respect
to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”).  The Eurodollar Rate for each outstanding Eurodollar
Rate Loan shall be adjusted automatically as of the effective date of any change
in the Eurodollar Reserve Percentage.

     

    
      KEYW and
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      Credit
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    “Eurodollar
Rate Loan” means any Loan that bears interest at a rate based on the
Eurodollar-Based Rate.

     

    “Event of Default” has the meaning set
forth in Section 6 of this Agreement.

     

    “Field Exam” has the meaning set forth
in Section 4.9 of this Agreement.

    

    “Financing Documents” means,
collectively, this Agreement, the Notes, the Negative Pledge Agreement, any
Hedge Agreement, any Letter of Credit Agreement, any Additional Financing
Documents, any subordination agreement, and any other instrument, document or
agreement now or hereafter executed, delivered or furnished by the Borrowers or
any other person evidencing, guaranteeing, securing or in connection with this
Agreement or all or any part of the Credit Facilities.

    

    “Fixed Charge Coverage Ratio” means the
ratio of (a) Cash Flow to (b) Fixed Charges.

    

    “Fixed Charges” means the sum of
scheduled principal payments made on long-term debt and capitalized lease
obligations, plus interest expense, plus lease and/or rent expense measured in
accordance with the Annualization Calculation plus any contingent cash
consideration payments.

    

    “GAAP” means generally accepted
accounting principles in the United States of America.

    

    “Government Contract” means (i) any
contract entered into by the Borrowers with the United States government or any
state or local government or any division, department, or instrumentality
thereof and (ii) any contract entered into between the Borrowers and any “prime”
contractor providing goods and services to the United States government or any
state or local government or any division, department, or instrumentality
thereof.

    

     “Hazardous
Materials” shall mean hazardous wastes, hazardous substances, toxic chemicals
and substances, oil and petroleum products and their by-products, radon,
asbestos, pollutants or contaminants.

     

    “Hedge
Agreement” means any agreement between the Borrowers and the Lender or any
affiliate of the Lender now existing or hereafter entered into, which provides
for an interest rate, credit, commodity or equity swap, cap, floor, collar,
forward foreign exchange transaction, currency swap, cross-currency rate swap,
currency option, or any similar transaction or any combination of, or option
with respect to, these or similar transactions, for the purpose of hedging the
Borrowers’ exposure to fluctuations in interest or exchange rates, loan, credit,
exchange, security or currency valuations or commodity prices in connection
herewith.

     

      KEYW and
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      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Insight” means Insight Information
Technology, LLC, a Delaware limited liability company.

    

    “Interest Payment Date” means, as to
any Eurodollar Rate Loan, the last day of each Interest Period applicable to the
Eurodollar Rate Loan and the Revolving Credit Expiration Date or the Term Loan
Maturity Date, as applicable; provided, however, that if any
Interest Period for a Eurodollar Rate Loan exceeds three months, the respective
dates that fall every three months after the beginning of such Interest Period
shall also be Interest Payment Dates.

     

    “Interest
Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or continued as a Eurodollar Rate
Loan and ending on the date one, two, three or six months thereafter, as
selected by Borrowers in the Advance/Continuation Request; provided
that:

     

    (i) 
any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end on
the next preceding Business Day;

     

    
      (ii) 
any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

    

    

    (iii) no
Interest Period shall extend beyond the Revolving Credit Expiration Date or the
Term Loan Maturity Date, as applicable.

    

    “Lender” has the meaning given to such term in
the preamble hereto.

    

    “Letter of Credit” means any letter of
credit issued by the Lender for the account of the Borrowers under the Revolving
Credit Facility.

    

    “Letter of Credit Account” has the
meaning set forth in Section 1.2(m) of this Agreement.

     

    “Letter of Credit Agreement”
means an
Application and Agreement for Letter of Credit on the Lender’s standard form, as
such form may be revised by the Lender in its discretion at any time and from
time to time hereafter.

     

    “Letter of Credit Exposure” means at
any time the sum of (x) the undrawn amount of all Letters of Credit
outstanding at such time, and (y) all Letter of Credit Obligations
outstanding at such time.

     

    “Letter of Credit Fee” has the meaning
set forth in Section 1.2(l) of this Agreement.

     

    
      KEYW and
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      Credit
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    “Letter of Credit Obligations” means,
collectively, (i) the amount of each draft drawn under or purporting to be
drawn under a Letter of Credit, (ii) the amount of any and all charges,
reasonable costs and expenses (including, without limitation, reasonable
attorneys’ fees and expenses) which the Lender may charge, pay or incur for
drawings under a Letter of Credit, transfers of a Letter of Credit, amendments
to and extensions of a Letter of Credit and for the prosecution or defense of
any action arising out of or in connection with any Letter of Credit, including,
without limitation, any action to enjoin full or partial payment of any draft
drawn under or purporting to be drawn under any Letter of Credit, including, but
not limited to, Letter of Credit Fees, (iii) interest on all amounts
payable under (i) and (ii) above from the date due until paid in full at a per
annum rate of interest equal at all times to the Default Rate.

     

    “Loans” mean collectively, the unpaid
balance of Advances under the Revolving Credit Facility and the Term Loan, which
may be ABR Loans or Eurodollar Rate Loans.

    

    “Negative Pledge Agreement” means the
Covenant Not to Convey and Negative Pledge Agreement executed by all of the
Borrowers of even date in favor of the Lender.

    

    “Notes”
means, collectively, the Revolving Loan Note and the Term Note.

     

    “Obligations” shall mean all present
and future indebtedness, liabilities and obligations of any kind and nature
whatsoever of the Borrowers to the Lender both now existing and hereafter
arising under, as a result of, on account of, or in connection with, this
Agreement and any and all amendments, restatements, supplements and
modifications hereof made at any time and from time to time hereafter, the
Notes, any and all extensions, renewals or replacements thereof, amendments
thereto and restatements or modifications thereof made at any time or from time
to time hereafter, the Letter of Credit Agreements, or the other Financing
Documents, including, without limitation, future advances, principal, interest,
indemnities, fees, late charges, Letter of Credit Exposure, Enforcement Costs
and other costs and expenses whether direct, contingent, joint, several, matured
or unmatured, and the indebtedness owed under any Hedge Agreement.

     

    “PBGC” means the Pension Benefit
Guaranty Corporation or its successor entity.

     

    “Permitted Acquisition” means the acquisition or
purchase of, or investment in, any Person, any operating division or unit of any
Person, or the Capital Stock or operational assets of any Person or the
combination with any Person by any Borrower (each individually, a “Subject
Transaction”) regardless of the structure
of the Subject Transaction, provided that the aggregate of such Subject
Transactions does not total more than $5,000,000 in any calendar year, unless
such is approved by the Lender in writing prior to consummation;
provided, however, that the acquisition of TAG and Insight shall not be included
within the calendar year aggregate cap for calendar year 2010.

    

    “Permitted
Liens” means liens permitted pursuant to Section 5.6 of this
Agreement.

     

    “Person” means any natural person,
individual, company, corporation, partnership, joint venture, unincorporated
association, government or political subdivision or agency thereof, or any other
entity of whatever nature.

     

    “Plan” means any pension, employee
benefit, multi-employer, profit sharing, savings, stock bonus or other deferred
compensation plan.

    
       

      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Prime-Based Rate” means a floating and
fluctuating per annum rate of interest equal at all times to the sum of the
Prime Rate plus one percent (1%).

     

    “Prime Rate” shall mean the floating
and fluctuating per annum rate of interest of the Lender at any time and from
time to time established and declared by the Lender in its sole and absolute
discretion as its prime rate, and does not necessarily represent the lowest rate
of interest charged by the Lender to borrowers.

     

    “Reserve Requirements” means the
maximum rate (expressed as a decimal) at which reserves (including any marginal,
supplemental, emergency or other reserves) are required to be maintained under
Regulation D of the Federal Reserve Board or otherwise by any statute or
regulation applicable to the class of commercial banks which includes the
Lender.

    

    “Revolving Credit Account” means the
loan account maintained by the Lender with respect to Advances, repayments and
prepayments of Advances, the accrual and payment of interest on Advances and all
other amounts and charges owing to the Lender in connection with
Advances.

     

    “Revolving Credit Amount” means the
amount of Seventeen Million Five Hundred Thousand Dollars ($17,500,000), as the
same may from time to time be increased in accordance with the provisions of
Section 1.3 of
this Agreement.

     

    “Revolving Credit Expiration Date”
means February 20, 2011, or such later date as to which the Lender shall, in its
discretion, agree to extend the Revolving Credit Expiration Date.

     

    “Revolving Credit Exposure” means, at
any time, the sum of the aggregate principal amount of outstanding Advances plus
the Letter of Credit Exposure.

     

    “Revolving Credit Facility” shall mean
the revolving credit facility established pursuant to Sections 1.2 and 1.3
hereof, as applicable, in a maximum principal amount at any one time outstanding
equal to the Revolving Credit Amount, made available to the Borrowers pursuant
to this Agreement.

     

    “Revolving Loan Note” means the
Revolving Loan Note in the amount of Twenty Seven Million Five Hundred Thousand
Dollars ($27,500,000) executed by the Borrowers and payable to the order of the
Lender, as amended from time to time.

     

    “SEC” means the U.S. Securities and
Exchange Commission or any successor agency.

     

    “Senior Funded Debt” shall mean the sum
of all of the outstanding Obligations to the Lender, all Capital Leases and all
indebtedness secured by Permitted Liens to the extent not otherwise
subordinated.

     

    “Subordinated Debt” means debt of the
Borrowers, the payment of which is subordinated to the repayment of the
Obligations on terms satisfactory to the Lender in its sole
discretion.

     

    
      KEYW and
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      Credit
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    “Subordination
Agreement” means that certain Subordination Agreement dated as of February 22,
2010, by and among TAG Holdings, LLC, the Lender, and HoldCo, as amended from
time to time.

     

    “Subsidiary”
means an entity of which the Borrowers directly or indirectly owns or controls
securities or other ownership interests representing more than 50% of the
ordinary voting power thereof.

     

    “TAG
Earn-Out Payment” shall mean any “earn-out” payments required to be made
pursuant to the Contribution Agreement.

     

    “Term Loan” shall mean the term loan in
the principal amount of $5,000,000 made pursuant to Section 1.4
hereof.

     

    “Term Loan Interest Rate” shall mean
the Eurodollar-Based Rate plus seventy-five
(75) basis points.

     

    “Term Loan Maturity Date” shall mean
February 20, 2011.

     

    “Term Note” shall mean the Term Note of
even date herewith from the Borrowers made payable to the order of the Lender,
as amended from time to time.

     

    “Total Funded Debt” shall mean all
outstanding liabilities for borrowed money and other interest-bearing
liabilities, including current and long-term debt, Capital Leases and
Subordinated Debt.

     

    “Unused Commitment Fee” shall mean the
fee paid by the Borrowers to the Lender pursuant to
Section 1.2(e).

     

    “Unused Commitment Fee Percentage”
shall mean the percentage upon which the Unused Commitment Fee shall be
calculated, as determined in accordance with Attachment I
hereto.  The Unused Commitment Fee Percentage earned during any
calendar quarter shall be determined based upon the Borrowers’ ratio of Total
Funded Debt to EBITDA as of the last day of the immediately prior calendar
quarter.  The Unused Commitment Fee Percentage shall be determined and
adjusted quarterly on the first day of the first month after the date by which
the annual and quarterly compliance certificates and related financial
statements and information are required in accordance with the provisions of
this Agreement.

     

    1.2.    
    Revolving Credit
Facility.

    

    (a)           Advances and Letters of
Credit. Subject to and upon the provisions of this Agreement and relying
upon the representations and warranties herein set forth, the Lender agrees at
any time and from time to time to make Advances to the Borrowers and issue
Letters of Credit for the account of the Borrowers from the date hereof until
the earlier of the Revolving Credit Expiration Date or the date on which this
Revolving Credit Facility is terminated pursuant to Section 7 hereof, in an
aggregate principal amount at any time outstanding not to exceed the lesser of
(i)  the Revolving Credit Amount or (ii) the Borrowing Base; provided,
however, that  in no event shall the total Letter of Credit Exposure
exceed $2,000,000 at any one time.

     

    
      KEYW and
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      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In no event shall the Lender be
obligated to make an Advance or issue a Letter of Credit hereunder if a Default
shall have occurred and be continuing.  Unless sooner terminated
pursuant to other provisions of this Agreement, this Revolving Credit Facility
and the obligation of the Lender to make Advances and issue Letters of Credit
hereunder shall automatically terminate on the Revolving Credit Expiration Date
without further action by, or notice of any kind from, the
Lender.  Within the limitations set forth herein and subject to the
provisions of this Agreement, the Borrowers may borrow, repay and re-borrow
under this Revolving Credit Facility.  The fact that there may be no
Advances or Letters of Credit outstanding at any particular time shall not
affect the continuing validity of this Agreement.

    

    All Advances must be in the minimum
amount of One Hundred Thousand Dollars ($100,000) and integral multiples of
Fifty Thousand Dollars ($50,000) in excess thereof.  All Advances
requested by the Borrowers are to be in writing pursuant to a written request
("Advance/Continuation
Request") in the form of Exhibit B
attached hereto.  Each such Advance/Continuation Request must be
received by the Lender not later than 11:00 a.m., Baltimore, Maryland time,
three (3) Business Days prior to the requested date of any Advance and must
specify the amount of the Advance and the Interest Period.  If no
Interest Period is specified, the Interest Period shall be deemed to be a one
month period.  Upon receiving an Advance/Continuation Request for an
Advance in accordance with the foregoing sentence, and subject to the conditions
set forth in this Agreement, the Lender shall make the requested Advance
available to the Borrowers as soon as is reasonably practicable thereafter on
the day the requested Advance is to be made (which shall be a Business
Day).

    

    (b)          Use of Proceeds of
Advances.  The proceeds of each Advance may be deposited by the
Lender in the Borrowers’ demand deposit account with the Lender.  The
proceeds of the Advances shall be used solely for Permitted Acquisitions, for
working capital, for the issuance of Letters of Credit, and for other lawful
purposes.

    

    (c)           Liability of Lender.
The Lender shall in no event be responsible or liable to any person other than
the Borrowers for the disbursement of or failure to disburse Advances or any
part thereof, and no other party shall have any right or claim against the
Lender under this Agreement or the other Financing Documents.

    

    (d)           Interest on
Advances; Repayment of Advances. Except for any period during which an
Event of Default shall have occurred and be continuing, each Eurodollar Rate
Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurodollar-Based Rate for such
Interest Period, and each ABR Loan shall bear interest on the outstanding
principal amount thereof at a rate per annum equal to the Prime-Based
Rate.  Interest on each Eurodollar Rate Loan shall be due and payable
in arrears on each Interest Payment Date applicable thereto and at such other
times as may be specified herein.  Interest on each ABR Loan shall be
due and payable on the first day of each month. 

    

    After maturity (whether by acceleration
or otherwise), or during any period in which an Event of Default exists and
remains continuing, the unpaid principal balance of the Advances shall bear
interest at a rate equal to the Default Rate.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Notwithstanding any other provision of
this Agreement, if the Lender determines (which determination shall be
conclusive) (i) that any applicable law, rule, or regulation, or any change in
the interpretation of any such law, rule, or regulation shall make it unlawful
or impossible for the Lender to charge or collect interest at the
Eurodollar-Based Rate;  (ii) that adequate and reasonable means do not
exist for ascertaining the Eurodollar Base Rate;  (iii) that deposits
in Dollars (in the applicable amounts) are not being offered to the Lender in
the relevant market; or (iv) that the Eurodollar Base Rate will not adequately
and fairly reflect the cost to the Lender of making or maintaining the Advances,
then upon written notice from the Lender to the Borrowers, the entire
outstanding principal balance of the Revolving Credit Facility shall bear
interest at the Prime-Based Rate.

    

    If not sooner paid, the entire
outstanding principal balance of the Advances, together with all accrued and
unpaid interest thereon, shall be due and payable on the Revolving Credit
Expiration Date.

    

    (e)           Unused Commitment
Fee.  During the period from the date hereof until the earlier
of the Revolving Credit Expiration Date or the date on which the Revolving
Credit Facility is terminated pursuant to the provisions hereof, the Borrowers
shall pay to the Lender an availability fee in a per annum amount equal to the
Unused Commitment Fee Percentage times the average daily unused portion of the
Revolving Credit Amount.  Such availability fee shall commence to
accrue on the date of this Agreement and shall be due and payable by the
Borrowers quarterly, in arrears, commencing on March 31, 2010, and, on the last
Business Day of each third month thereafter, and on the earlier of the Revolving
Credit Expiration Date or on the date on which the Revolving Credit Facility is
terminated pursuant to Section 7 hereof.

    

    (f)           Revolving Loan Note;
Revolving Credit Account.  The Borrowers’ obligation to pay the
Advances with interest shall be evidenced by the Revolving Loan
Note.  The Lender will maintain the Revolving Credit Account with
respect to Advances, repayments and prepayments of Advances, the accrual and
payment of interest on Advances and all other amounts and charges owing to the
Lender in connection with Advances.  Except for demonstrable error,
the Revolving Credit Account shall be conclusive as to all amounts owing by the
Borrowers to the Lender in connection with and on account of
Advances.

    

    (g)           Required Prepayments of
Advances. On any date on which the Revolving Credit Exposure exceeds the
then current Borrowing Base (such excess being hereinafter called a “Borrowing Base
Deficiency”), the Borrowers shall pay to the Lender on each such date an
amount equal to the Borrowing Base Deficiency.

    

    (h)           [Intentionally
Omitted].

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)    
       Voluntary Prepayments;
Voluntary Termination.  Within the limitations set forth herein
and subject to the provisions of this Agreement, the Borrowers may, upon notice
to the Lender, at any time or from time to time voluntarily prepay Advances in
whole or in part without premium or penalty; provided that (i)
such notice must be received by the Lender not later than 11:00 a.m., Baltimore,
Maryland time (A) three (3) Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of ABR Loans; (ii) any
prepayment of Eurodollar Rate Loans shall be in a principal amount of $100,000
or a whole multiple of $50,000 in excess thereof; and (iii) any prepayment of
ABR Loans shall be in a principal amount of $100,000 or a whole multiple of
$50,000 in excess thereof or, in each case, if less, the entire principal amount
thereof then outstanding.  Each such notice shall specify the date and
amount of such prepayment and, if Eurodollar Rate Loans are to be prepaid, the
Interest Period(s) of such Eurodollar Rate Loans.  If such notice is
given by the Borrowers, the Borrowers shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified
therein.  Any prepayment of a Eurodollar Rate Loan shall be
accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to the following paragraph.

    

    Upon
written demand of the Lender from time to time, the Borrowers shall promptly
compensate the Lender for and hold the Lender harmless from any loss, cost or
expense incurred by it as a result of: (a)  any continuation, payment
or prepayment of any Eurodollar Rate Loan on a day other than the last day of
the Interest Period for such Eurodollar Rate Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise); or (b)  any
failure by the Borrowers to prepay, borrow, or continue any Eurodollar Rate Loan
on the date or in the amount notified by the Borrowers; including any loss of
anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Eurodollar Rate Loan or
from fees payable to terminate the deposits from which such funds were
obtained.  The Borrowers shall also pay any other fees, including,
without limitation, Breakage Fees and customary administrative fees incurred or
charged by the Lender in connection with the foregoing.  For purposes
of calculating amounts payable by the Borrowers to the Lender under this
paragraph, the Lender shall be deemed to have funded each Eurodollar Rate Loan
at the Eurodollar Base Rate used in determining the Eurodollar Rate for such
Eurodollar Rate Loan by a matching deposit or other borrowing in the London
interbank eurodollar market for a comparable amount and for a comparable period,
whether or not such Eurodollar Rate Loan was in fact so funded.

     

    (j)      
     Terms of Letters of
Credit.  Each Letter of Credit shall (i) be a commercial Letter
of Credit or a standby Letter of Credit, (ii) be opened pursuant to a Letter of
Credit Agreement duly executed and delivered to the Lender by the Borrowers
prior to the issuance of such Letter of Credit, (iii) either expire on the
Revolving Credit Expiration Date or not extend more
than three hundred sixty four (364) days beyond the Revolving Credit Expiration
Date provided that the Borrowers Cash Collateralize such Letters of Credit that
extend beyond the Revolving Credit Expiration Date as contemplated below, (iv)
be in an amount not less than $10,000, (v) be issued in the ordinary course of
the Borrowers’ business, and (vi) be issued in accordance with the Lender’s then
current practices relating to the issuance of letters of credit.  All
powers, right, remedies and provisions set forth in any Letter of Credit
Agreement shall be in addition to those set forth herein.  In the
event of any conflict between the provisions of this Agreement and the
provisions of any Letter of Credit Agreement, the provisions of this Agreement
shall prevail and control unless expressly provided otherwise herein or in the
Letter of Credit Agreement.  If, as of the
Revolving Credit Expiration Date, any Letter of Credit may for any reason remain
outstanding and partially or wholly undrawn, the Borrowers shall immediately
Cash Collateralize the then outstanding amount of all such obligations, in an
amount equal thereto determined as of the Revolving Credit Expiration Date, as
the case may be.  For purposes hereof, “Cash Collateralize”
means to pledge and deposit with or deliver to the Lender, cash or deposit
account balances pursuant to documentation in form and substance reasonably
satisfactory to the Lender.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (k)           Procedures for Letters of
Credit.  The Borrowers shall give the Lender written notice of
their request for a Letter of Credit at least three (3) Business Days prior to
the date on which the Letter of Credit is to be opened by delivering to the
Lender a duly executed Letter of Credit Agreement in form and content acceptable
to the Lender setting forth (i) the face amount of the Letter of Credit, (ii)
the name and address of the beneficiary of the Letter of Credit, (iii) whether
the Letter of Credit is irrevocable or revocable, (iv) whether the Letter of
Credit requested is a standby or commercial Letter of Credit, (v) the date the
Letter of Credit is to be opened and the date the Letter of Credit is to expire,
(vi) the purpose of the Letter of Credit, (vii) the terms and conditions for any
draws under the Letter of Credit, and (viii) such other information as the
Lender may reasonably deem to be necessary or desirable.

    

    (l)  
         Letter of Credit
Fees.  With respect to each Letter of Credit issued hereunder,
the Borrowers shall pay to the Lender a letter of credit fee (the “Letter of Credit
Fee”) in an amount per annum set forth in the table attached hereto as
Attachment I,
payable quarterly in advance, plus the Lender’s
then standard fee for the issuance, negotiation, processing and administration
of letters of credit of the same type as the Letter of Credit.  The
amount of the Letter of Credit Fee payable per annum with respect to any Letter
of Credit shall be a percentage of the face amount of such Letter of Credit,
calculated on the basis of the table included as Attachment I hereto,
based upon the Borrowers’ ratio of Total Funded Debt to EBITDA as of the end of
the calendar quarter immediately preceding the date of calculation.

    

    (m)          Agreement to Pay Letter of
Credit Obligations.  The Borrowers shall pay to the Lender the
Letter of Credit Obligations when due; provided, however, that (a) so
long as the Borrowers have availability under the Revolving Credit Facility, the
Lender may, and is hereby authorized to, make Advances to itself to pay when due
any or all Letter of Credit Obligations incurred in connection with Letters of
Credit.  The Lender may maintain on its books a letter of credit
account (the “Letter
of Credit Account”) with respect to the Letter of Credit Obligations paid
and payable from time to time hereunder.  Except for demonstrable
error, the Letter of Credit Account shall be conclusive as to all amounts owing
by the Borrowers to the Lender in connection with and on account of the Letter
of Credit Obligations.  From the date due until
paid in full, all Letter of Credit Obligations shall bear interest at the
Default Rate.

    

    (n)          Agreement to Pay
Absolute.  The obligation of the Borrowers to pay Letter of
Credit Obligations set forth above shall be absolute and unconditional and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit, (ii) the existence of any claim, setoff, defense or other right which
the Borrowers may at any time have against the beneficiary under any Letter of
Credit or the Lender, (iii) any draft or other document presented under a Letter
of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue provided that payment by the
Lender under such Letter of Credit against presentation of such draft shall not
have constituted gross negligence or willful misconduct, and (iv) any other
events or circumstances whatsoever, whether or not similar to any of the
foregoing provided that the payment by the Lender under the Letter of Credit
shall not have constituted gross negligence or willful misconduct of the
Lender.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (o)           Commitment
Fee.  In consideration for the agreements of the Lender as set
forth herein, the Borrowers agree to pay to the Lender on the date of this
Agreement an upfront fee equal to 25 basis points of the Revolving Credit
Amount, which fee shall be deemed earned upon its receipt by the
Lender.   On each date on which the Revolving Credit Amount is
increased in accordance with the provisions of Section 1.3 hereof,
the Borrowers shall pay to the Lender a commitment fee equal to 25 basis points
times the amount of such increase.

    

    1.3         Accordion
Facility.  Subject to the terms and conditions of this
Agreement (including, without limitation, all of the conditions precedent to the
making of Advances set forth herein), from the date hereof until the earlier of
the Revolving Credit Expiration Date or the date on which this facility is
otherwise terminated pursuant to the provisions of Section 7, the Lender
may, in its sole and absolute discretion, from time to time make Advances to the
Borrowers in an amount greater than the difference between the then-current
Revolving Credit Amount and the then-current Revolving Credit Exposure (that
portion of each such Advance that exceeds the then-current Revolving Credit
Amount being hereinafter called a “Accordion Advance”);
provided, however, that: (a) each Accordion Advance shall be for the purpose of
supporting a Permitted Acquisition with respect to which the information
required by Section
2.3 hereunder has been provided to the Lender, (b) each Accordion Advance
shall be in a minimum increment of $2,500,000, (c) requests for Accordion
Advances may not be made more than two (2) times in any 365-day period, (d) the
aggregate principal amount of all Accordion Advances shall not exceed
$10,000,000, and (e) in no event shall the Lender make a new Accordion Advance
hereunder if an Event of Default shall have occurred and be
continuing.

    

    Once an
Accordion Advance has been made hereunder, it shall be considered an Advance for
all purposes under this Agreement (including, without limitation the calculation
of the Revolving Credit Exposure) and shall be repaid in accordance with the
terms and conditions hereof.  Each time the Lender makes an Accordion
Advance, the Revolving Credit Amount shall automatically and permanently
increase to an amount equal to the Revolving Credit Exposure (after giving
effect to such Accordion Advance).   The Revolving Credit Amount
may not be reduced in the same manner.

    

    1.4         Term
Loan

    

    (a)           Advance of Term Loan.
Subject to and upon the provisions of this Agreement and relying upon the
representations and warranties herein set forth, the Lender shall advance to the
Borrowers on the date hereof the Term Loan in the principal amount of
$5,000,000.  Amounts advanced and repaid under the Term Loan may not
be re-borrowed.

    

    (b)           Deposit of
Proceeds.  The proceeds of the Term Loan will be deposited by
the Lender in the Borrowers’ demand deposit account with the
Lender.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)           Interest on Term
Loan. Except
for any period during which an Event of Default shall have occurred and be
continuing, the Borrowers shall pay interest (calculated on a daily basis) on
the unpaid principal balance of the Term Loan until maturity (whether by
acceleration, extension or otherwise) at a per annum rate of interest equal at
all times to the Term Loan Interest Rate in effect from time to
time.

    

    After maturity, or during any period in
which an Event of Default exists and remains continuing, the unpaid principal
balance of the Term Loan shall bear interest at a rate equal to the Default
Rate.

    

    Notwithstanding any other provision of
this Agreement, if the Lender determines (which determination shall be
conclusive) (i) that any applicable law, rule, or regulation, or any change in
the interpretation of any such law, rule, or regulation shall make it unlawful
or impossible for the Lender to charge or collect interest at the Term Loan
Interest Rate, or (ii) that quotations of interest rates for the relevant
deposits referred to in the definition of the Term Loan Interest Rate are not
being provided in the relevant amounts or for the relevant maturities, then upon
written notice from the Lender to the Borrowers, the entire outstanding
principal balance of the Term Loan shall bear interest at the Prime-Based Rate
plus twenty-five (25) basis points.

    

    (d)          Repayment of Principal of
and Interest on Term Loan.  The unpaid principal balance of the
Term Loan, together with accrued and unpaid interest thereon, shall be paid as
follows:

    

    
      	
               
      

            	
              (i)

            	
              Interest
      on the Term Loan shall be due and payable in arrears on each Interest
      Payment Date applicable thereto and at such other times as may be
      specified herein; provided, however, during
      any period in which the Term Loan bears interest at the Prime-Based Rate,
      interest shall be due and payable on the first day of each month during
      such period.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Commencing
      on the first day of May, 2010, and continuing on the first (1st)
      day of each calendar month thereafter until the Term Loan Maturity Date,
      the Borrowers shall make consecutive monthly payments of principal, each
      in the amount of $500,000.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Unless
      sooner paid, the entire unpaid principal balance of the Term Loan,
      together with all accrued and unpaid interest thereon, shall be due and
      payable on the Term Loan Maturity
Date.

            

    

    

    (e)          Term
Note.  The Borrowers’ obligation to repay the Term Loan with
interest shall be evidenced by the Term Note.

    

    (f)          Voluntary Prepayments;
Voluntary Termination.  The Borrowers may prepay all or any
portion of the Term Loan, from time to time without premium or
penalty.  Any prepayment shall be applied first to accrued and unpaid
interest, and then to the principal portion of the regular monthly installments
in the inverse order of their maturity.

    

    (g)          Commitment
Fee.  In consideration for the agreements of the Lender as set
forth herein, the Borrowers agree to pay to the Lender on the date of this
Agreement an upfront fee equal to 25 basis points of the amount of the Term
Loan, which fee shall be deemed earned upon its receipt by the
Lender.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h)          Mandatory
Prepayments.  Upon the consummation of any securities or other
equity offering by any Borrower (excluding (i) equity issued upon exercise of
employee and director options or as restricted stock issued under compensatory
arrangements with employees, consultants and directors, (ii) equity issued in a
stock split, stock dividend or similar capital event not for the purpose of
raising cash, (iii) equity issued in a business combination or reorganization
not for the purpose of raising cash, (iv) equity issued in connection with the
exercise of any warrant issued by HoldCo, (v) equity issued in connection with a
Permitted Acquisition (but in no event issued more than 30 days from the
consummation of such Permitted Acquisition) in an aggregate amount not to exceed
3% of the then current issued and outstanding shares of HoldCo, (vi) equity
issued for cash for the purpose of funding the acquisition price and related
costs and expenses of one or more Permitted Acquisitions, and (vii) any other
securities or equity offering not otherwise permitted hereunder in an aggregate
amount not to exceed $1,000,000 in any twelve-month period), the Borrowers shall
make a prepayment of the Term Loan in an amount equal to the lesser of (i) the
outstanding balance of the Term Loan and (ii) the amount of the net proceeds
from such securities or other equity offering.

    

    Notwithstanding any other provision of
this Agreement, if the Lender determines (which determination shall be
conclusive) (i) that any applicable law, rule, or regulation, or any change in
the interpretation of any such law, rule, or regulation shall make it unlawful
or impossible for the Lender to charge or collect interest at the
Eurodollar-Based Rate; (ii) that adequate and reasonable means do not exist for
ascertaining the Eurodollar Base Rate; (iii) that deposits in Dollars (in the
applicable amounts) are not being offered to the Lender in the relevant market;
or (iv) that the Eurodollar Base Rate will not adequately and fairly reflect the
cost to the Lender of making or maintaining the Term Loan, then upon written
notice from the Lender to the Borrowers, the entire outstanding principal
balance of the Term Loan shall bear interest at the Prime-Based
Rate.

    

    1.5.        Additional
Provisions.

    

    (a)           Interest
Calculation.  All interest and fees payable under the
provisions of this Agreement or the Notes shall be computed on the basis of
actual number of days elapsed over a year of 360 days.

    

    (b)           Late
Charges.  If the Borrowers fail to make any payment of
principal, interest, prepayments, fees or any other amount becoming due pursuant
to the provisions of this Agreement, the Notes or any other Financing Document
within fifteen (15) days after the date due and payable, upon written notice by
the Lender the Borrowers shall pay to the Lender a late charge equal to five
percent (5%) of the amount of such payment.  Such 15-day period shall
not be construed in any way to extend the due date of any such
payment.  Late charges are imposed for the purpose of defraying the
Lender’s expenses incident to the handling of delinquent payments, and are in
addition to, and not in lieu of, the exercise by the Lender of any rights and
remedies hereunder or under applicable laws and any fees and expenses of any
agents or attorneys which the Lender may employ upon the occurrence of an Event
of Default.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)          Payments.  Except
as otherwise provided herein, whenever any payment to be made by the Borrowers
under the provisions of this Agreement, the Notes, the Letter of Credit
Agreements or any other Financing Document is due on a day which is not a
Business Day, the due date thereof shall be extended to the next succeeding
Business Day and, in the case of any payment which bears interest, such
extension of time shall be included in computing interest on such
payment.  All payments of principal, interest, fees or other amounts
to be made by the Borrowers under the provisions of this Agreement or the Notes
shall be paid without set-off or counterclaim to the Lender at the Lender’s
office at 1101 Wootton Parkway, 4th Floor, Rockville, MD 20852, or to such other
place as the Lender shall direct in writing, in lawful money of the United
States of America in immediately available funds.

    

    (d)           Interest On Overdue
Amounts.  If the principal of or interest on, the Notes or any
other amount required to be paid to the Lender hereunder or under the
Notes  or any of the other Financing Documents is not paid within
fifteen (15) days after the date when the same becomes due and payable, whether
by acceleration or otherwise, the Borrowers shall on demand from time to time
pay to the Lender interest on such principal, interest or other amount from the
date due until the date of payment (after as well as before any judgment) at a
rate per annum equal to the Default Rate.

    

    (e)           Collateral and Joinder of
Future Subsidiaries.  (1) In order to secure the full and
punctual payment of the Obligations in accordance with the terms thereof, and to
secure the performance of this Agreement and the other Financing Documents, the
Borrowers hereby pledge and assign to the Lender, and grant to the Lender a
continuing lien and security interest in and to the Collateral, both now owned
and existing and hereafter created, acquired and arising and regardless of where
located.

    

    (2)           Promptly,
following the acquisition or creation thereof and in any event within thirty
(30) days after a written request with respect thereto, the Borrowers shall
cause each of the Borrowers’ future Subsidiaries (except for any Subsidiary
formed for the purpose of effectuating a Permitted Acquisition or other
transaction permitted under Section 5.9 of this Agreement and which Subsidiary
shall not be the surviving entity) to become party to this Agreement, and to
execute and deliver an appropriate joinder agreement satisfactory in form and
content to the Lender and thereby joining in the Borrowers’ obligations under
this Agreement as co-borrower.

    

    (3)           Promptly,
following the acquisition or creation thereof and in any event within thirty
(30) days after a written request with respect thereto, the Borrowers shall
cause such future Subsidiary (except as otherwise provided in Section 1.5(e)(2)
of this Agreement) to execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, and thereafter register, file or record in any
appropriate governmental office, any document or instrument reasonably deemed by
the Lender to be necessary or desirable for the creation and perfection of the
foregoing liens (including legal opinion, consents, corporate documents and any
additional or substitute security agreements or mortgages).  The
Borrowers will cause such Subsidiary to take all actions requested by the Lender
(including, without limitation, the filing of UCC-1's) in connection with the
granting of such security interests.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (4)           The
security interests required to be granted pursuant to this Section shall be
granted pursuant to such additional security documentation as is reasonably
satisfactory in form and substance to Lender (the “Additional Financing
Documents”) and shall constitute valid and enforceable perfected security
interests prior to the rights of all third Persons and subject to no other Liens
except Permitted Liens.  The Additional Financing Documents and other
instruments related thereto shall be duly recorded or filed in such manner and
in such places and at such times as are required by law to establish, perfect,
preserve and protect the Liens, in favor of the Lender, granted pursuant to the
Additional Financing Documents and, all taxes, fees and other charges payable in
connection therewith shall be paid in full by the Borrowers.  At the
time of the execution and delivery of Additional Financing Documents, the
Borrowers shall cause to be delivered to the Lender such agreements, opinions of
counsel, and other related documents as may be reasonably requested by the
Lender to assure it that this Section has been complied with.

    

    (5)           Automatic Debit. To
ensure timely payment of all interest and other sums due hereunder, the
Borrowers hereby authorize and instruct the Lender to either (i) debit, on
the due date thereof, a demand deposit account established and maintained at the
Lender for the amount then due, or (ii) at the Lender’s option, cause an
Advance to be made sufficient to pay the amount then due.  This
authorization shall not affect the obligation of the Borrowers to pay such sums
when due, without notice, if there are insufficient funds available to make any
payment in full on the due date thereof, or if the automatic debit feature is at
any time terminated by the Lender in its discretion.

    

    (f)           Calculation of Applicable
Margin. If, as a result of any restatement of or other adjustment to the
financial statements of the Borrowers or for any other reason,  the
Borrowers or the Lender determine that (i) the ratio of Total Funded Debt to
EBITDA as calculated by Borrowers as of any applicable date was inaccurate and
(ii) a proper calculation of such financial covenant would have resulted in
higher pricing for such period, the Borrowers shall immediately and
retroactively be obligated to pay to the Lender, promptly on demand by Lender
(or, after the occurrence of an actual or deemed entry of an order for relief
with respect to any Borrower under the United States Bankruptcy Code,
automatically and without further action by the Lender), an amount equal to the
excess of the amount of interest and fees that should have been paid for such
period over the amount of interest and fees actually paid for such
period.  The Borrowers’ obligations under this paragraph shall survive
the repayment of all other Obligations hereunder.

    

    (g)           Continuation of Eurodollar
Rate Loans.  The Borrowers may continue any Eurodollar Rate
Loan upon the expiration of an Interest Period with respect thereto by
delivering an Advance/Continuation Request to the Lender at least three (3)
Business Days prior to the proposed date of extension.  If the
continuation of Eurodollar Rate Loans is not permitted hereunder, each such
Eurodollar Rate Loan shall be automatically converted to an ABR Loan at the end
of the applicable Interest Period with respect thereto. If the Borrowers request
a continuation of a Eurodollar Rate Loan in any such Advance/Continuation
Request, but fail to specify an Interest Period, they will be deemed to have
specified an Interest Period of one month.   If the Borrowers
fail to request a continuation of any Eurodollar Rate Loan prior to the
expiration of the Interest Period with respect thereto, such Eurodollar Rate
Loan shall be deemed to have an Interest Period of one month thereafter,
effective as of the last day of the Interest Period then in effect.  A
Eurodollar Rate Loan may be continued only on the last day of an Interest Period
for such Eurodollar Rate Loan.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    There
shall not be more than five (5) Interest Periods in effect at any one time with
respect to all Eurodollar Rate Loans.

    

    1.6.        The Borrowers’
Representative. Each of the Borrowers hereby represents and warrants to
the Lender that it will derive benefits, directly and indirectly, from the
proceeds of each Advance and Letter of Credit, both in its separate capacity and
as a member of the integrated business to which each of the Borrowers
belong.  For administrative convenience, HoldCo is hereby irrevocably
appointed by each of the Borrowers as agent for each of the Borrowers for the
purpose of requesting Advances and Letters of Credit hereunder from the Lender,
receiving the proceeds of Advances and disbursing the proceeds of Advances among
the Borrowers.  In its capacity as such agent, HoldCo shall have the
power and authority through its authorized officer or officers to (i) endorse
any check for the proceeds of any Advance for and on behalf of each of the
Borrowers and in the name of each of the Borrowers, and (ii) instruct the Lender
to credit the proceeds of any Advance directly to a banking account of any of
the Borrowers.  By reason of the foregoing, the Lender is hereby
irrevocably authorized by each of the Borrowers to make Advances to the
Borrowers and issue Letters of Credit for the account of the Borrowers pursuant
to this Agreement upon the request of any one of the persons who is authorized
to do so under the provisions of any applicable corporate resolutions of HoldCo.
The Lender assumes no responsibility or liability for any errors, mistakes
and/or discrepancies in any oral, telephonic, written or other transmissions of
any instructions, orders, requests and confirmations between the Lender and any
one or more of the Borrowers in connection with any Advance, Letter of Credit or
other transaction pursuant to the provisions of this Agreement, except for acts
of gross negligence and/or willful misconduct.

    

    SECTION
2.   Conditions
Precedent.

    

    2.1.        Initial Advance or Letter of
Credit.  The Lender shall not be required to make the initial
Advance, or issue the initial Letter of Credit hereunder, whichever occurs
first, unless the following conditions precedent have been satisfied in a manner
reasonably acceptable to the Lender and its counsel:

    

    (a)           Borrowers’ Organizational
Documents.  The Lender shall have received with respect to the
Borrowers:  (i) a copy, certified as of a recent date by the Secretary
of State of each Borrowers’ state of organization, of each Borrower’s Articles
of Incorporation or Organization, as applicable, as well as a copy of each
Borrower’s operating agreement or bylaws, as applicable, and all amendments
thereto, (ii) a Certificate of Good Standing for each Borrower as issued by such
Borrower’s state of organization, and (iii) a copy, certified to the Lender as
true and correct as of the date hereof by the Borrowers, of the resolutions of
each Borrowers’ board of directors or consents of managing members, as
applicable, authorizing the execution and delivery of this Agreement and the
other Financing Documents to which the Borrowers are a party and designating by
name and title the officer(s) of the Borrowers who are authorized to sign this
Agreement and such other Financing Documents for and on behalf of the Borrowers
and to make the borrowings hereunder.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

       

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Lists of Locations,
Etc.  The Borrowers shall have delivered to the Lender a list
showing the street address, city or county and state of the Borrowers’ chief
executive office and of any other location where the Borrowers conduct or have a
place of business or where any of the Collateral is or may be located, which
list shall include the names of all landlords (and mortgagees) and be
accompanied by true and complete copies of all leases, together with all
amendments thereto;

    

    (c)           Insurance.  The
Borrowers shall have delivered to the Lender a property and casualty insurance
policy from a well-rated and responsible insurance company insuring the
Collateral in amounts satisfactory to the Lender against loss or damage
resulting from fire and other risks insured against by extended coverage,
together with a standard non-contributing and non-reporting loss payee
endorsement in favor of the Lender in form satisfactory to the Lender, and such
other insurance policies as the Lender shall reasonably require;

    

    (d)           Searches.  The
Lender shall have received the results of a search by an attorney or company
reasonably satisfactory to the Lender of the Uniform Commercial Code filings
with respect to the Borrowers in their jurisdictions of organization and in
which the Borrowers conduct or have a place of business or in which any of the
Collateral is or will be located, accompanied by copies of such filings, if any,
and evidence satisfactory to the Lender that any security interest or other lien
indicated in any such filing has or will be released or is permitted by the
Lender so that the Lender’s security interest in the Collateral will be a
perfected first security interest and lien on the Collateral subject only to
Permitted Liens and such other matters as the Lender may approve;

    

    (e)           Opinions.  The
Lender shall have received the written opinion of counsel of the Borrowers dated
on or around the date of this Agreement, reasonably satisfactory in form and
content to the Lender, opining, among other things, that the Borrowers are,
validly existing, and in good standing, that the Financing Documents executed
and delivered by the Borrowers have been duly authorized by all requisite
corporate action, and that the Financing Documents executed and delivered by the
Borrowers constitute the legal, valid, binding, and enforceable obligations of
the Borrowers, enforceable against the Borrowers, as applicable, in accordance
with the terms thereof, subject to customary exceptions and limitations
reasonably acceptable to the Lender.

    

    (f)           Financing Documents.
The Lender shall have received each of the Financing Documents required by the
Lender to be executed and delivered prior to the making of the initial
Advance.

    

    (g)           Due
Diligence.  The Lender shall have received and reviewed such
financial information and other due diligence reports as the Lender shall
reasonably require including, without limitation, the following information in
form and substance satisfactory to the Lender in the Lender’s sole reasonable
discretion:

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           the
Borrowers’ year-to-date financial statements as of December 31,
2009;

    (ii)          the
Borrowers’ accounts receivable agings and contract backlog data;

    (iii)         the
Borrowers’ detailed pro forma financial projections (including income statement,
balance sheet, and cash flows) covering fiscal years 2010 through 2011 on a
quarterly basis, containing an outline and explanation of each assumption
governing the creation thereof;

    (iv)   
     copy of the executed Contribution Agreement, dated
as of the date hereof, by and among TAG, TAG Holdings, LLC, D. Patrick Curry,
2008 Dennis Patrick Curry Grantor Retained Annuity Trust, Kevin B. Wilshere,
HoldCo and the Company (as amended, the “Contribution
Agreement”) in connection with the HoldCo’s acquisition of TAG, and the
Lender’s confirmation that such agreement evidences a minimum equity
contribution of $3,400,000;

    (v)     
    an integration plan that comprehensively outlines
timetables and expected hurdles associated with the assimilation of all present
and future Subsidiaries;

    (vi)    
    TAG’s audited annual financial statements as of December
31, 2008, and TAG’s year-to-date financial statements as of December 31, 2009;
and

    (vii)   
    a Field Exam of TAG.

    

    (h)          Operating Account;
Etc.  The Borrowers shall have established an operating account
into which Advances shall be paid, and the Borrowers shall maintain their
primary accounts with the Lender.

    

    (i)           Borrowing Base
Certificate.  The Borrowers shall have delivered to the Lender
the initial Borrowing Base Certificate in the form set forth herein as Exhibit
A.

    

    (j)           Executed Subordination
Agreements.    The Lender shall have received a fully
executed subordination agreement or agreements reasonably satisfactory to the
Lender in all respects with respect to any Subordinated Debt of the Borrowers,
specifically including without limitation the holders of any “take-back”
debt.

    

    (k)           Borrowing Base Availability
at Closing.  As of the date of this Agreement and after giving
effect to the initial Advance, the Borrowers shall have minimum liquidity (i.e.,
the sum of unrestricted cash and availability under the Borrowing Base) of
$1,500,000.

    

    (l)           Background
Investigation.  The Lender shall have satisfactorily completed
a background investigation of the Borrowers and each Borrower’s senior
management.

    

    (m)          Pre-filing
Authorization.  The Lender shall have received a writing
authorizing the Lender to pre-file UCC-1s to perfect its lien upon the
Collateral.

    

    (n)           Payoff Letters from Prior
Lenders.  The Lender shall have received payoff letters in form
and content satisfactory to the Lender in connection with each Borrower’s
relationship with any financial institution that is being refinanced by the
transactions evidenced by this Agreement.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (o)           Senior Funded Debt to EBITDA
at Closing.  As of the date of this Agreement and after giving
effect to the initial Advance, the consolidated ratio of Senior Funded Debt to
EBITDA for the Borrowers shall not be greater than 2.50 to 1.0.  The
Borrowers shall have provided the Lender with a compliance certificate (in form
and substance reasonably satisfactory to the Lender) demonstrating compliance
with this Section 2.1(o).

    

    (p)           Additional
Documents.  The Borrowers shall have furnished in form and
content reasonably acceptable to the Lender any additional documents,
agreements, certifications, record searches, insurance policies or opinions
which the Lender may reasonably deem necessary or desirable.

    

    2.2.        Insight Acquisition
Advance.  The Lender shall not be required to make any Advance
that will be used (in whole or in part) in connection with the acquisition of,
or investment in, Insight, unless the following conditions precedent have been
satisfied in a manner reasonably acceptable to the Lender and its
counsel:

    

    (a)           Due Diligence, Etc.
The Borrowers shall have compiled information substantially similar to the items
required by Section
2.1 of this Agreement.

    

    (b)           Borrowing Base
Availability. As of the date of such acquisition or investment and after
giving effect to such Advance, the Borrowers shall have minimum liquidity (i.e.,
the sum of unrestricted cash and availability under the Borrowing Base) of
$2,500,000.

    

    (c)    
   Senior Funded Debt to
EBITDA. As of the date of such acquisition or investment and after giving
effect to such Advance, the consolidated ratio of Senior Funded Debt to EBITDA
for the Borrowers shall not be greater than 2.50 to 1.0.  The
Borrowers shall have provided the Lender with a compliance certificate (in form
and substance reasonably satisfactory to the Lender) demonstrating compliance
with this provision.

    

    (d)           Additional
Documents.  The Borrowers shall have furnished in form and
content reasonably acceptable to the Lender any additional documents,
agreements, certifications, record searches, insurance policies or opinions
which the Lender may reasonably deem necessary or desirable.

    

    2.3.        Accordion
Advances.  The Lender shall not consider making any Accordion
Advances until the Borrowers have compiled with respect to each proposed
acquisition, information substantially similar to the items required by Section 2.1 of this
Agreement.

    

    2.4.        All Advances and Letters of
Credit.  The Lender shall not be required to make any Advances,
including the initial Advance, or issue any Letter of Credit, until compliance
to the satisfaction of the Lender with all of the following conditions at the
time of and with respect to each Advance or Letter of Credit:

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)           Representations and
Warranties.  No representation or warranty made in or in
connection with this Agreement and the other Financing Documents shall be
untrue, incorrect or incomplete in any material respect on and as of the date of
any Advance or Letter of Credit as if made on such date, except for changes in
facts or circumstances arising in the ordinary course of business and which do
not constitute a breach of any covenant set forth herein; and

    

    (b)           Event of Default or
Default.  No Event of Default or Default shall have occurred
and be continuing.

    

    SECTION 3.   Representations and
Warranties.  The Borrowers represent and warrant to the Lender
that, except as specifically set forth on Schedule 3 attached
hereto, the following statements are true, correct and complete in all material
respects as of the date hereof and as of each date any Advance is to be made or
any Letter of Credit is to be issued hereunder, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true, correct and complete as of such earlier date, and
except for changes in facts or circumstances arising in the ordinary course of
business and which do not constitute a breach of any covenant set forth
herein:

    

    3.1.        Authority,
Etc.  THE KEYW HOLDING CORPORATION is duly organized and in
good standing under the laws of the State of Maryland under organizational
identification number D13357330.  THE KEYW CORPORATION is duly
organized and in good standing under the laws of the State of Maryland under
organizational identification number D12526901.  INTEGRATED COMPUTER
CONCEPTS, INCORPORATED is duly organized and in good standing under the laws of
State of Maryland under organizational identification number
D04665618.  S&H ENTERPRISES OF CENTRAL MARYLAND, INC. is duly
organized and in good standing under the laws of State of Maryland under
organizational identification number D03603081.  THE ANALYSIS GROUP,
LLC is duly formed and in good standing under the laws of the Commonwealth of
Virginia under organizational identification number S067240-4.

    

    The
Borrowers are qualified to do business in all states where the Borrowers do
business, except where the failure to be so qualified would not materially
adversely affect the business, operations or financial condition of the
Borrowers.  The Borrowers have the full power and authority to
execute, deliver and perform this Agreement and the other Financing Documents to
which the Borrowers are a party.  Neither such execution, delivery and
performance, nor compliance by the Borrowers with the provisions of this
Agreement and of the other Financing Documents to which the Borrowers are a
party will conflict with or result in a breach or violation of the Borrowers’
articles of incorporation, articles of organization, bylaws, operating
agreements or any similar organizational documents, or any judgment, order,
regulation, ruling or law to which the Borrowers are subject or any contract or
agreement to which the Borrowers are a party or to which the Borrowers’ assets
and properties is subject, or constitute a default thereunder.  The
execution, delivery and performance of this Agreement and all other Financing
Documents to which the Borrowers are a party have been duly authorized and
approved by all necessary action by the Borrowers and constitute the legal,
valid and binding obligations of the Borrowers, enforceable in accordance with
their terms except as enforceability may be limited by bankruptcy, insolvency or
similar laws affecting the enforcement of creditors’ rights
generally.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.2.        Litigation.  There
is no litigation or proceeding pending or, to the knowledge of any
representative of the Borrowers signing this Agreement on behalf of the
Borrowers, threatened against or affecting the Borrowers which might materially
adversely affect the business, financial condition or operations of the
Borrowers or the ability of the Borrowers to perform and comply with this
Agreement or the other Financing Documents to which the Borrowers are a
party.

     

    3.3.        Subsidiaries.  Except
as set forth on Schedule 3.3 attached
hereto, on the Closing Date the Borrowers do not currently have any Subsidiaries
that are not Borrowers.

    

    3.4.        Financial
Condition.  The Borrowers have heretofore furnished to the
Lender certain financial statements.  Such financial statements and
all other financial statements and information furnished or to be furnished to
the Lender hereunder have been and will be prepared in accordance with generally
accepted accounting principles (subject to year-end adjustments and the omission
of footnote information) and fairly present in all material respects the
financial condition of the Borrowers as of the dates thereof and the results of
the operations of the Borrowers for the periods covered thereby.  No
material adverse change in the business, financial condition, prospects or
operations of the Borrowers have occurred since the date of such financial
statements. The Borrowers do not have any indebtedness or liabilities that are
required to be accrued on financial statements prepared in accordance with GAAP
other than that reflected on such financial statements or expressly permitted by
the provisions of this Agreement, and accounts payable incurred in the ordinary
course of business since the date of such financial statements. The Borrowers
are not in default under any obligation for borrowed money.

    

    3.5.        Taxes.  The
Borrowers have filed all federal, state and local income, excise, property and
other tax returns which are required to be filed and has paid all taxes as shown
on such returns or assessments received (including, without limitation, all
F.I.C.A. payments and withholding taxes, if appropriate), except for such taxes,
if any, as are being contested in good faith and as to which adequate reserves
have been provided.  No tax liens have been filed and no claims are
being asserted with respect to such taxes or assessments.

    

    3.6.        Title to Properties and
Collateral.  The Borrowers have good and marketable title to
all of the Borrowers’ assets and properties, including, without limitation, the
Collateral, and such assets and properties are subject to no liens, security
interests or other encumbrances except for those of the Lender or other
Permitted Liens.

    

    3.7.        Borrowers’ Name, Business
Locations, etc.  The correct legal names of the Borrowers are
those specified on Schedule
3.7.  Except as provided on Schedule 3.7, the
Borrowers have conducted business under their legal names since their formation.
The Borrowers do not do business under any trade or fictitious
names.  The chief executive office of the Borrowers and the place
where records concerning Accounts and other Collateral are kept are as set forth
on Schedule 3.7 hereto, and each other location at which the Borrowers conduct
business or keeps any of the Collateral is listed on Schedule 3.7 attached
hereto.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.8.        Compliance with
Laws.  (a) To the knowledge of the Borrowers, the Borrowers are
not in violation of any applicable federal, state or local law, statute, rule,
regulation or ordinance and has not received any notice of, and is not the
subject of, any pending investigation or complaint alleging that the Borrowers
or the Collateral (or any part thereof) or any other property owned, leased,
operated or used by the Borrowers are in violation of any such law, statute,
rule, regulation or ordinance, including, without limitation, Environmental Laws
other than violations that will not have a material adverse effect on the
business, operations or financial condition of the Borrowers.

    

    (b)           To
the knowledge of the Borrowers, no Hazardous Materials have been used, located,
installed, spilled, treated, released or stored on, under or from any property
in or on which the Borrowers conduct their operations except for those which
have been handled in a manner not prohibited by applicable Environmental Laws or
which will not have a material adverse effect on the business, operations or
financial condition of the Borrowers.

    

    3.9.        Federal Reserve Board
Regulations.  The Borrowers are not engaged in the business of
extending credit for the purpose of purchasing or carrying “margin stock” within
the meaning of Regulation U of the Board and no part of the proceeds of the
Advances will be used for any purpose which entails a violation of Regulations U
or X of the Board.

    

    3.10.      ERISA.  No
Plan maintained by the Borrowers or any trade or business group with which the
Borrowers are affiliated subject to the requirements of ERISA has been
terminated, no lien exists against the Borrowers in favor of the PBGC, and no
“reportable event” (as such term is defined in ERISA) has occurred with respect
to any such Plan. The Borrowers have not incurred any “accumulated funding
deficiency” within the meaning of ERISA or any liability to the PBGC in
connection with any Plan.  The Borrowers do not have any withdrawal or
other liability (absolute, contingent or otherwise) with respect to any
multi-employer plan as defined by Section 3(37) of ERISA.  The
Borrowers have complied with in all material respects all provisions of ERISA
and with all provisions of any Plan sponsored, maintained by, or contributed to,
by the Borrowers.

    

    3.11.      Licenses,
etc.  The Borrowers have obtained and now hold all licenses,
permits, franchises, patents, trademarks, copyrights and trade names which are
necessary to the conduct of the business of the Borrowers as now conducted free,
to the knowledge of the Borrowers, of any conflict with the rights of any other
person.

    

    3.12.      Labor
Matters.  Except as disclosed in writing to the Lender, the
Borrowers are not subject to any collective bargaining agreements or any
agreements, contracts, decrees or orders requiring the Borrowers to recognize,
deal with or employ any persons organized as a collective bargaining unit or
other form of organized labor.  There are no strikes or other material
labor disputes pending or, to the knowledge of the Borrowers, threatened against
the Borrowers.  The Borrowers have complied in all material respects
with the Fair Labor Standards Act.

    

    3.13.      Accuracy of
Information.  To the knowledge of the Borrowers, no
information, exhibit, report, statement, certificate or document furnished by
the Borrowers to the Lender in connection with this Agreement or the other
Financing Documents or the negotiation thereof contains any material
misstatement of fact or omitted to state a material fact or any fact necessary
to make the statements contained herein or therein not misleading.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.14.      No Debarment or
Suspension.  The Borrowers are not subject to any pending or
threatened debarment or suspension proceedings.

    

    3.15       Intellectual
Property.  As of the date of this Agreement, Schedule 3.15 to this
Agreement is a complete list of all patents, trademark and service mark
registrations, copyright registrations, mask work registrations, and all
applications therefor, in which the Borrowers have any right, title, or
interest, throughout the world.  At the time that the quarterly
financial statements are to be delivered pursuant to Section 4.2(b) of this
Agreement, the Borrowers will notify the Lender of any acquisition (by adoption
and use, purchase, license or otherwise) of any patent, trademark or service
mark registration, copyright registration, mask work registration, and
applications therefor, and unregistered trademarks and service marks and
copyrights, throughout the world, which are granted or filed or acquired after
the date hereof or which are not listed on Schedule
3.15.

    

    3.16.      Assignment of Government
Payments.  The Borrowers have the right to assign to the Lender
all payments due or to become due under all of the Borrowers’ U.S. Government
Contracts and there exists no un-canceled assignment of payment rights under any
such Government Contract.

    

    3.17.      Accounts.  With
respect to each Account reflected as an Eligible Account in the computations
included in any Borrowing Base Certificate, except as specifically disclosed on
the applicable Borrowing Base Certificate, (A) such Account represents a
bona fide sale of Inventory or rendering of services to the applicable Account
Debtor in the ordinary course of the Borrowers’ business and is not evidenced by
a judgment, Instrument or Chattel Paper, (B) (1) to the Borrowers’
knowledge, there are no setoffs, claims or disputes existing or asserted with
respect thereto, and (2) the Borrowers have not made any agreement with the
Account Debtor with respect thereto for any extension of time for the payment
thereof, any compromise or settlement for less than the full amount thereof, any
release of such Account Debtor from liability therefor, or any deduction
therefrom except a discount or allowance allowed by the Borrowers in the
ordinary course of business for prompt payment, (C) to the Borrowers’
knowledge, there are no facts, events or occurrences that in any way impair the
validity or enforceability thereof or could reasonably be expected to reduce the
amount payable thereunder as shown on the Borrowers’ books and records,
(D) the Borrowers have not received any notice of proceedings or actions
that are threatened or pending against the Account Debtor with respect thereto
that could reasonably be expected to result in any material adverse change in
such Account Debtor's financial condition, (E) the Borrowers have no
knowledge that the applicable Account Debtor is unable generally to pay its
debts as they become due or is on a “credit watch” list of Dun & Bradstreet,
TRW or any other nationally-recognized trade credit association unless the
Borrowers have determined in their reasonable credit judgment that such Account
Debtor is still creditworthy; (F) the amounts reflected on all records,
invoices, statements and collateral reports that may be delivered to the Lender
with respect thereto are actually and absolutely owing as indicated thereon and
are not in any way contingent, and to the Borrower’s knowledge, each Account
Debtor that is a party thereto has the capacity to contract; and (G) each
Eligible Account reflected in the computations included in any Borrowing Base
Certificate satisfies the criteria established therefor in this
Agreement.

     

    
      KEYW and
Subsidiaries

      Credit
and Security Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.18.      Government
Regulation.  The Borrowers are not an “investment company” or
an “affiliated person” of or “provider” or “principal underwriter” for an
“investment company” as all such terms are defined in the Investment Company Act
of 1940, as amended.

    

    SECTION 4.   Affirmative
Covenants. The Borrowers covenant and agree with the Lender that so long
as any of the Obligations (or commitments therefor) shall be
outstanding:

    

    4.1.        Payment of
Obligations.  The Borrowers shall punctually pay the principal
of and interest on the Credit Facilities and the other Obligations, at the times
and places, in the manner and in accordance with the terms of this Agreement,
the Notes, and the other Financing Documents.

    

    4.2.        Financial Statements and
Other Reports.  The Borrowers shall maintain at all times a
system of accounting established and administered in accordance with sound
business practices, and will deliver, or cause to be delivered, to the Lender,
in form and substance satisfactory to the Lender in all respects:

    

    
      	
               
      

            	
              (a)

            	
              Annual Financial
      Statements.  As soon as available, but in no event later
      than the earlier of (i) ninety (90) days after the end of each fiscal year
      of the Borrowers or (ii) upon the filing of Form 10-K with the SEC, the
      annual consolidated and consolidating financial statements of the
      Borrowers, (including statements of financial condition, income, profits
      and loss, cash flows and changes in shareholder’s
      equity)  audited by independent certified public accountants
      satisfactory to the Lender;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Quarterly Financial
      Statements.  During the first three fiscal quarters of
      each fiscal year of the Borrowers, as soon as available, but in no event
      later than the earlier of (i)  forty-five (45) days after the
      end of each such fiscal quarter or (ii) upon the filing of each Form 10-Q
      with the SEC, the consolidated and consolidating balance sheets and income
      statements of the Borrowers prepared by an authorized financial officer of
      the Borrowers and showing the financial condition of the Borrowers as of
      the end of such quarter and the results of operations of the Borrowers
      from the beginning of the current fiscal year of the Borrowers to the end
      of such quarter;

            

    

    

    
      	
               
      

            	
              (c)

            	
              Projected Financial
      Statements.  As soon as available, and in any event no
      later than sixty (60) days after the end of each fiscal year of the
      Borrowers, projected financial statements for the Borrowers for the next
      calendar year, to include income statement, balance sheet, and cash flow
      projections prepared on a quarterly
basis;

            

    

     

    
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              (d)

            	
              Borrowing Base
      Certificates.  Within twenty-five  (25) days
      after the end of each calendar month (and at any other time upon the
      reasonable request of the Lender), a fully-completed Borrowing Base
      Certificate, accompanied by accounts receivable agings reports and
      accounts payable agings reports;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Compliance
      Certificates.  Concurrent with the delivery of the
      financial statements described in Sections (a) and (b) above, a written
      certification, signed by an authorized financial officer of the Borrowers,
      to the effect that such officer has no knowledge of the existence of any
      Defaults under the Financing Documents or if such officer has knowledge of
      the existence of an Event of Default, a statement as to the nature thereof
      and the action which the Borrowers proposes to take with respect
      thereto.  Such written certification shall include the
      calculations made by the Borrowers to determine compliance by the
      Borrowers with each of the financial covenants set forth herein as of the
      date of the financial statements delivered therewith and shall be in
      substantially the form attached hereto as Exhibit
      D;

            

    

    

    
      	
               
      

            	
              (f)

            	
              Contract Backlog
      Report.  Within forty-five (45) days after the end of
      each quarter, a contract backlog
report;

            

    

    

    
      
        	 	
                (g)

              	
                ERISA Reports.
      Promptly after filing, a copy of each annual report filed in respect of
      any Plan subject to ERISA;

              

      

    

    

    
      
        	
              	
                (h)

              	
                Other
      Information.  Promptly upon request of the Lender such
      other information, reports or documents respecting the business,
      properties, operation or financial condition of the Borrowers as the
      Lender may at any time and from time to time reasonably
      request.

              

      

    

    

    4.3.        Conduct of Business and
Maintenance of Existence.  The Borrowers shall continue to
engage in business of the same general type as now being conducted by the
Borrowers and do and cause to be done all things necessary to maintain and keep
in full force and effect their corporate or limited liability company, as
applicable, existence in good standing in each jurisdiction in which they
conduct business.

    

    
      	
               
      

            	
              4.4.

            	
              Compliance with
      Laws.

            

    

    

    (a)           The
Borrowers shall comply in all material respects with all laws, statutes,
ordinances, orders, rules or regulations applicable to the Borrowers or the
Collateral (or any part thereof) or to any other property owned, leased,
operated or used by the Borrowers, including, without limitation, Environmental
Laws.

     

    
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    (b)        The
Borrowers will not use, locate, install, spill, treat, release or store
Hazardous Materials on, under or from any property owned, leased, operated or
used by the Borrowers unless such Hazardous Materials are handled in a manner
not prohibited by applicable Environmental Laws and are handled in a manner and
in such quantities that would not constitute a hazard to the environment or
human health and safety or subject the Borrowers to any prosecution or material
liability in connection therewith.  The Borrowers will dispose of all
Hazardous Materials only at facilities and/or with carriers that maintain
governmental permits under applicable Environmental Laws.  The
Borrowers shall promptly, at the cost and expense of the Borrowers, take all
action required by Environmental Laws to remedy or correct any violation of
Environmental Laws by the Borrowers, the Collateral (or any part thereof) or by
any other property owned, leased, used or operated by the
Borrowers.

    

    (c)         [Intentionally
Omitted].

    

    (d)        The
Borrowers hereby agree to indemnify and hold the Lender and its employees and
agents harmless from and against any and all liability, loss, damage, costs and
expenses suffered or incurred by the Lender during or after the term of this
Agreement arising out of or resulting from a violation of any Environmental Laws
by the Borrowers, the Collateral (or any part thereof) and any other property
owned, leased, used or operated by the Borrowers provided, however, that the
Borrowers shall not be required to indemnify any party for  liability,
loss, damage, costs, or expenses arising from such party’s own gross negligence
or willful misconduct.  The obligations and liabilities of the
Borrowers under the foregoing indemnity, together with interest thereon
commencing ten (10) days after the date written demand is received by the
Borrowers until paid in full at the Default Rate, shall be paid by the Borrowers
to the Lender upon written demand and shall be a part of the Obligations
hereunder.  The foregoing indemnity shall survive the payment of all
other Obligations and the release of the Collateral.

    

    4.5.       Payment of Liabilities and
Taxes.  The Borrowers shall pay, when due, all of their
indebtedness and liabilities, and pay and discharge promptly all taxes,
assessments and governmental charges and levies (including, without limitation,
F.I.C.A. payments and withholding taxes) upon the Borrowers or upon the
Borrowers’ income, profits or property (including, without limitation, the
Collateral), except to the extent the amount or validity thereof is contested in
good faith by appropriate proceedings so long as adequate reserves have been set
aside therefore.

    

    4.6.       Contractual
Obligations.  The Borrowers shall comply with any agreement or
undertaking to which the Borrowers are a party and maintain in full force and
effect all contracts and leases to which the Borrowers are or become a party, in
each case unless the failure to do so would not have a material adverse effect
on the business, operation, properties or financial condition of the Borrowers
taken as a whole.

    

    4.7.       Maintenance of Properties;
Collateral.  The Borrowers shall do all things necessary to
maintain, preserve, protect and keep their properties in good repair, working
order and condition, and make all necessary and proper repairs, renewals and
replacements so that the Borrowers’ businesses may be properly conducted at all
times, in each case unless the failure to do so would not have a material
adverse effect on the business, operation or financial condition of the
Borrowers.  The Borrowers shall perform, observe, and comply with all
of the terms and provisions to be performed, observed or complied with by them
under each contract, agreement or obligation relating to the
Collateral.  The Lender shall have no duty to, and the Borrowers
hereby release the Lender from all claims for loss or damage caused by the
failure of the Lender to, collect, protect, preserve or enforce any of the
Collateral or preserve rights against account debtors and prior parties to the
Collateral.

     

    
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    4.8.       Insurance.  The
Borrowers shall maintain, with financially sound, well rated and reputable
insurance companies insurance in such amounts and covering such risks as is
consistent with sound business practice, and in any event as is ordinarily and
customarily carried by (and, as implied, economically available to) companies
similarly situated and in the same or similar businesses as the
Borrowers.  The Borrowers will pay, when due, all premiums on such
insurance and will furnish to the Lender, upon request, evidence of payment of
such premiums and other information as to the insurance carried by the
Borrowers.  Such insurance shall include, as applicable and without
limitation, (a) comprehensive fire and extended coverage insurance on the
physical assets and properties of the Borrowers against such risks, with such
loss deductible amounts and in such amounts conforming to prudent business
practices and in such minimum amounts that the Borrowers will not be deemed a
co-insurer under applicable insurance laws, regulations, policies and practices,
and (b) public liability insurance against claims for personal injury or death
or property damage occurring upon, in, about or in connection with the use of
any properties owned, occupied or controlled by the Borrowers,
and  (c) worker’s compensation insurance (as
applicable).

    

    4.9.       Inspection.  The
Borrowers shall permit the Lender, by its representatives and agents, to inspect
any of the properties, books and financial records of the Borrowers, to examine
and make copies of the books of accounts and other financial records of the
Borrowers, and to discuss the affairs, finances and accounts of the Borrowers
with, and to be advised as to the same by, the Borrowers (or their
representatives) at such reasonable times and intervals as the Lender may
designate.  In connection with the foregoing, the Lender and its
representatives and agents shall have the right, upon reasonable notice and
during regular working hours, to (a) enter any business premises of the
Borrowers or any other premises where the Collateral and the records relating
thereto may be located and to audit, appraise, examine and inspect the
Collateral and all records related thereto and to make extracts therefrom and
copies thereof, and (b) verify under reasonable procedures the validity, amount,
quality, quantity, value and condition of, and any other matter relating to, the
Collateral, including contacting account debtors or any person possessing any of
the Collateral. Without limiting the foregoing, the Borrowers specifically agree
that the Borrowers will permit the Lender to conduct, at the expense of the
Borrowers, (a) prior to closing and at least annually thereafter, an audit to be
performed by the Lender or an authorized agent of the Lender or an independent
accounting firm reasonably acceptable to the Lender (each, a “Field Exam”), and (b)
upon the occurrence of a Default or Event of Default, such additional
inspections or audits as the Lender shall deem necessary or
advisable.  Based upon the results of the Field Exams, the Lender
reserves the right to make adjustments to the Borrowing Base requirements,
including, without limitation, eligibility requirements, advance rates and
reserve requirements, type and frequency of reporting, and frequency of Field
Exams. The Borrowers shall not be responsible for the expense of more than one
(1) Field Exam in any twelve-month period  (and the Lender agrees not
to request more than one (1) Field Exam at the Borrowers’ expense in any
twelve-month period) unless (i) an Event
of Default has occurred and is continuing; or (ii) any Borrower consummates a
merger or acquisition permitted by Section 5.9 hereof.  To the extent
that the Lender receives any confidential information from or with respect to
the Borrowers, as a result of Field Exams or otherwise, (a)  the
Lender will not reproduce or distribute any such information, or any notes,
interpretations or other documents based in whole or in part upon such
information, to non-affiliated parties, other than financial or legal advisors
also bound by an obligation of confidentiality, and (b) the Lender will keep
permanently confidential all such information, except to the extent that (i)
such information ceases to be confidential by reason of its being in the public
domain, other than as a result of a disclosure by the Lender or its
representatives, or (ii) such information was within the Lender’s possession or
becomes available to the Lender on a non-confidential basis from a source other
than the Borrowers, or any representative of the Borrowers, or (iii) the Lender
is legally required to disclose such information to any tribunal or governmental
authority.

     

    
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    4.10.     Collection of
Accounts.  The Borrowers shall, subject to the provisions of
Section 4.14 hereof, collect their Accounts only in the ordinary course of
business, and shall not except in the ordinary course of their business, without
the Lender’s prior written consent, compromise or adjust the amount of any
Account or extend the time for payment of any Account.

    

    4.11.     Further
Assurances.  The Borrowers shall defend the security interest
and lien of the Lender on the Collateral against all persons and against all
security interests and liens on the Collateral adverse to those of the
Lender.  The Borrowers will, from time to time, at the expense of the
Borrowers, execute, deliver, acknowledge and cause to be duly filed, recorded or
registered any statement, assignment, instrument, paper, agreement or other
document and take any other action that from time to time may be necessary or
desirable, or that the Lender may reasonably request, in order to create,
preserve, continue, perfect, confirm or validate the security interest and lien
of the Lender on the Collateral or to enable the Lender to obtain the full
benefits of this Agreement or to exercise and enforce any of its rights, powers
and remedies hereunder or under applicable laws.  The Borrowers shall
pay all costs of, and incidental to, the filing, recording or registration of
any such document as well as any recordation, transfer or other tax required to
be paid in connection with any such filing, recordation or
registration.  The Borrowers hereby covenant to save harmless and
indemnify the Lender from and against any liability resulting from the failure
to pay any required documentary stamps, recordation and transfer taxes and
recording costs incurred by the Lender in connection with this Agreement or the
Collateral which covenant shall survive the termination of this Agreement and
the payment of all other Obligations.  The Borrowers agree that a
carbon, photographic, photostatic or other reproduction of this Agreement or of
a financing statement signed by the Borrowers in connection with this Agreement
shall be sufficient as a financing statement.

    

    4.12.     Notice.  The
Borrowers shall promptly give written notice to the Lender of (a) the occurrence
of any Default or Event of Default or any event, development or circumstance
specific to any Borrower which might materially adversely effect the business,
operations, properties or financial condition of the Borrowers, (b) any
litigation instituted or threatened against the Borrowers or any judgment
against the Borrowers where claims against the Borrowers exceed $250,000 and are
not covered in full by insurance (subject to any deductible), (c) any notice of
a claim against, or investigation of, the Borrowers, the Collateral or any other
property owned, leased, operated or used by the Borrowers alleging a violation
of Environmental Laws or the discovery, use, location, installation, spill,
treatment, release or storage of any Hazardous Materials by the Borrowers or on,
under or from the Collateral (or any part thereof) or any other property owned,
leased, used or operated by the Borrowers which could result in a breach of the
provisions of Section 4.4 hereof, (d) the occurrence of any “reportable event”
within the meaning of ERISA or any assertion of liability of the Borrowers by
the PBGC, and (e) notice of any suspension or debarment by any governmental
authority, or any termination of any Government Contract for
default.

     

    
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    4.13.     Collections.

    

    (a)        The
Borrowers shall notify and direct all Account Debtors promptly following written
request by the Lender to make all payments on or in respect of Accounts (other
than electronic funds transfers) directly to an account in the name of the
Borrowers to be maintained at the Lender (the “Collection
Account”).  So long as no Event of Default has occurred, the
Borrowers may continue to permit electronic payments to be made to the
Borrowers’ operating accounts (collectively, the “Operating Accounts”),
provided, however, that at the end of each Business Day, amounts remaining in
the Operating Accounts will be swept into the Collection Account.  The
Borrowers hereby authorize the Lender to receive, endorse and/or deposit into
the Collection Account in the name of the Lender or in the name of the Borrowers
any and all cash, checks, drafts and other remittances received by the Lender on
or in respect of Accounts and/or the sale or lease of Inventory and the
Borrowers hereby waive notice of presentment, protest and non-payment of any
such checks, drafts or other remittances.  In the event that the
Borrowers directly receive any cash, checks, drafts or other remittances on or
in respect of Accounts and/or the sale or lease of Inventory, the Borrowers
shall promptly deliver the same to the Lender for deposit to the Collection
Account.  Pending such deposit, the Borrowers will not commingle any
such cash, checks, drafts or other remittances with other funds and property but
will hold them separate and apart in trust for the Lender subject to the
security interests hereunder.  Until such authority is terminated by
the Lender pursuant to subsection (b) below, the Borrowers shall have the
authority to withdraw funds from the Collection Account and use the same for the
Borrowers’ general business purposes so long as such use is not inconsistent
with the provisions of this Agreement. Until an Event of  Default
exists or occurs, the Lender, on each Business Day
will apply all finally collected funds on deposit to the Collection Account to
the unpaid principal amount of Advances then outstanding.

    

    (b)      At
any time while an Event of Default shall be continuing, the Lender may (1)
terminate the authority of the Borrowers to receive electronic payments into the
Operating Accounts, whereupon all Account Debtors shall be directed to remit all
payments directly to the Collection Account, and (2) terminate the authority of
the Borrowers to withdraw funds from the Collection Account whereupon (i) the
Collection Account will automatically convert into an account over which the
Lender has exclusive dominion, control and power of access and withdrawal, and,
for that purpose, the Lender is hereby authorized to take all appropriate
actions to block the Borrowers’ access to the Collection Account, including
without limiting the generality of the foregoing, denying electronic access and
returning unpaid any checks, drafts or other instruments theretofore or
thereafter issued by the Borrowers and drawn upon the Collection Account, all
without any liability whatsoever on the part of the Lender to the Borrowers or
to any other person for having done so, (ii) any cash, checks, drafts or other
remittances on or in respect of Accounts and/or the sale or lease of Inventory
received by the Borrowers and held in trust for the Lender as above provided
shall be immediately delivered to the Lender for deposit to the Collection
Account in precisely the form received, except for the addition thereto of the
endorsement of the Borrowers where required for collection of any such checks,
drafts or other remittances which endorsement the Borrowers agree to make and
with respect to such checks, drafts and other remittances the Borrowers waives
notice of presentment, protest and non-payment and (iii) the Lender shall have
the right at any time and from time to time to apply funds held by it in the
Collection Account to the payment of all or any part of the Obligations, whether
matured or unmatured, in such order and manner as the Lender may determine in
its sole discretion.

     

    
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    4.14.     Assignment of Payments Under
Certain Government Contracts and Government Accounts.  On the
date hereof and thereafter upon the creation of any Government Contract, upon
the request of the Lender, the Borrowers shall execute and deliver to the Lender
specific assignments of payments due or to become due with respect to any
Government Contracts. The Lender may, in its sole and absolute discretion, from
time to time exclude from this requirement contracts that (a) provide for
payments to the Borrowers of less than $500,000, or (b) are less than six (6)
months in duration; provided, however that any such
exclusion, if granted, shall not release the Borrowers from the obligation to
provide such assignments in the future, at the Lender’s
discretion.  The Borrowers shall execute and deliver any and all
documents and take any and all steps necessary to provide the Lender with an
assignment.  The separate assignment to the Lender of a right to
payment under specific Government Contracts, as contemplated under this Section,
shall not be deemed to limit the Lender’s security interest to payments under
those particular Government Contracts, but rather the Lender’s security
interest, as stated above, shall extend to payments under any and all Government
Contracts and proceeds thereof, now or hereafter owned or acquired by the
Borrowers.  The Borrowers acknowledge that the Lender will be
irreparably harmed if the Borrowers fail to assign payments due or to become due
under any Government Contract when required by this Agreement, and that the
Lender shall have no adequate remedy at law.  Therefore, the Borrowers
agree that the Lender shall be entitled, in addition to all other remedies
allowed by law or under this Agreement, to injunctive or other equitable relief
to compel Borrowers’ compliance with the provisions of this Agreement requiring
the Borrowers to assign payments due or to become due under any Government
Contract.

    

    4.15.    
Intellectual
Property. The Borrowers will, at their expense, diligently prosecute all
patent, trademark or service mark or copyright applications pending on or after
the date hereof, if any, will maintain in effect all issued patents and will
renew all trademark and service mark registrations, if any, including payment of
any and all maintenance and renewal fees relating thereto.

    

    4.16.     Primary Operating
Accounts.  The Borrowers shall at all times maintain their
primary deposit and operating accounts, cash management operations and
collection/lockbox services with the Lender. The Borrowers recognize and agree
that the pricing for the Revolving Credit Facility set forth herein is based on
the assumption that the Borrowers will maintain their primary deposit and
operating accounts with the Lender, and that, in the event that the Borrowers
fail to do so, the Lender may, among other things, adjust the applicable
interest rate or fees in order to maintain its required rate of
return.

    

    
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    SECTION
5. Financial and
Negative Covenants.  The Borrowers covenant and agree with the
Lender that so long as any of the Obligations (or commitments therefor) shall be
outstanding:

    

    5.1.       Total Funded Debt to EBITDA
Ratio. The Borrowers shall not permit their consolidated ratio of Total
Funded Debt to EBITDA to be greater than 4.00 to 1.0.

    

    5.2        Senior Funded Debt to EBITDA
Ratio. The Borrowers shall not permit their consolidated ratio of Senior
Funded Debt to EBITDA to be greater than 2.75 to 1.0.

    

    5.3        Fixed Charge Coverage
Ratio.  The Borrowers shall not permit their consolidated Fixed
Charge Coverage Ratio to be less than 1.25 to 1.0.

     

    5.4        Asset Coverage
Ratio.  Commencing on December 31, 2010 and continuing
thereafter, the Borrowers shall not permit their consolidated Asset Coverage
Ratio to be less than 1.00 to 1.0.

     

    5.5        Indebtedness.  The
Borrowers shall not create, incur, assume or permit to exist any indebtedness
(including Capital Leases) except (a) indebtedness to the Lender, (b) other
indebtedness existing on the date hereof (a comprehensive list of which is
itemized on Schedule
5.5) or expressly permitted by the provisions hereof, (c) indebtedness
incurred by the endorsement of negotiable instruments for deposit or collection
in the ordinary course of business, (d) indebtedness incurred in the ordinary
course of business which is unsecured and consists of open accounts extended by
suppliers on normal trade terms in connection with the purchase of goods and
services, (e) indebtedness incurred in connection with Capital Lease obligations
in an aggregate outstanding amount not at any time exceeding $250,000, (f)
indebtedness of a Borrower to any other Borrower, (g) Subordinated Debt incurred
in connection with a Permitted Acquisition; provided that (A) the
Borrowers demonstrate, in the form of a signed compliance certificate, pro forma compliance with
each of the financial covenants set forth in Section 5 of this Agreement after
giving effect to such Subordinated Debt and (B) no Event of Default shall have
occurred and be continuing (or shall occur as a result of incurring such
Subordinated Debt), and (h) other indebtedness not otherwise permitted hereunder
in an aggregate outstanding amount not at any time exceeding
$50,000.

     

    5.6.       Liens.  The
Borrowers shall not create, incur, assume or permit to exist any lien, security
interest or encumbrance of any nature whatsoever on the Borrowers’ property or
assets, both now owned and hereafter acquired and including, without limitation,
the Collateral, except for (a) any lien or security interest now or hereafter
securing all or any part of the Obligations,  (b) any lien, security
interest or encumbrance existing on the date hereof which was immediately prior
hereto disclosed to, and approved by, the Lender in writing (including those
created to secure the Subordinated Debt),  (c) any lien, security
interest or other encumbrance subsequently approved by the Lender in writing
after the date hereof,  (d) liens for taxes not delinquent or for
taxes being diligently contested by the Borrowers in good faith and for which
adequate reserves are maintained,  (e) mechanic’s, artisan’s,
materialmen’s, vendor’s or other similar liens arising in the ordinary course of
business, (f) any deposit of funds made in the ordinary course of business to
secure obligations of the Borrowers under workers compensation, social security
or similar laws or to secure public or statutory obligations or the performance
of bids, tenders, contracts, leases, subleases, surety and appeals bonds and the
like, (g) zoning or other similar and customary land use restrictions, and (h)
duly perfected liens securing purchase money indebtedness not prohibited by this
Agreement, including duly perfected liens obtained in favor of lessors of
tangible personal property arising under operating leases to the extent such
leases are re-characterized as sales.  Any lien, security interest or
encumbrance permitted by this subsection is called a “Permitted
Lien.”

     

    
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    5.7.       Loans and
Investments.  The Borrowers shall not make or permit to remain
outstanding any loan or advance to, provide any guaranty for, or make or own any
investment in, any person except (a) reasonable advances for business expenses
of the Borrowers’ employees that would be reimbursable under the Borrowers’
existing expense reimbursement policy, (b) investments in existing Subsidiaries
(other than coreservlets.com, Inc.) and new Subsidiaries acquired in accordance
with the terms hereof,  (c) investments in obligations of, or
guaranteed by, the United States government or any agency thereof, (d)
investments in commercial paper rated in the highest grade, (e) loans or
advances permitted under Section 5.5(f) of this Agreement, and (f) the Company’s
guaranty pursuant to the Contribution Agreement.

    

    5.8.       Dividends.  The
Borrowers shall not without the prior written consent of the Lender, declare or
pay any dividend or other distribution on or with respect to any shares of any
class of their Capital Stock now or hereafter outstanding or redeem, purchase or
otherwise acquire any shares of any class of their Capital Stock now or
hereafter outstanding or any warrants or rights to purchase any such stock,
except (i) for dividends payable solely in shares of Capital Stock, (ii) for
cash distributions to the shareholders or members of the Borrowers for the
purpose of funding the tax liability of each shareholder or member arising from
the S-corporation status or limited liability company status, respectively, of
any Borrower, (iii) for cash dividends or distributions from any Borrower to
another Borrower, (iv) for any repurchase of Capital Stock of HoldCo not
otherwise permitted hereunder in an aggregate amount not to exceed $1,500,000;
provided, however, such amount
shall be reduced by any amount paid by HoldCo in connection with any redemption
or repurchase of any Capital Stock of HoldCo from TAG Holdings, LLC pursuant to
the Subordination Agreement, and (v) as otherwise permitted by the Subordination
Agreement.

    

    5.9.       Mergers, Acquisitions,
Etc. The Borrowers shall not enter into any merger or consolidation or
acquire or purchase all or substantially all of the assets, properties or stock
of any other Person without the prior written consent of the Lender, other than
Permitted Acquisitions; provided, however, that upon thirty (30) days prior
written notice to the Lender (i) any Borrower may merge with or consolidate into
another Borrower, (ii) any Subsidiary may merge with or consolidate into any
Borrower if such Borrower is the surviving entity, and (iii) any Borrower may
convert to a limited liability company and in connection with such conversion,
may change its legal name and rights (charter and statutory) to effect such
conversion so long as such Borrower will comply with the notice requirements
relating to such name or structure change under Section 5.12 of this
Agreement, provided (in each case covered by clauses (i), (ii) and (iii)) such
merger, consolidation or conversion shall not materially adversely affect such
Borrower, the Collateral or any rights or remedies of the Lender under the
Financing Documents.

     

    
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    5.10.     Sale of Assets and
Liquidation.  The Borrowers shall not sell, lease or otherwise
dispose of, in one transaction or a series of transactions, all or any
substantial part of their business, assets or properties, including, without
limitation, the Collateral, outside of the ordinary course of business or take
any action to liquidate, dissolve or wind up any Borrower or its business except
as otherwise permitted under Section 5.9 of this Agreement.

    

    5.11.     Change of
Business.  The Borrowers shall not enter into any business
other than their business as of the date of closing, and related
enterprises.

    

    5.12.     Change of Name, Location,
Etc.  The Borrowers shall not (a) change their legal name,
identity or structure, (b) change the location of their chief executive office
or their chief place of business, or jurisdiction of incorporation, (c) change
the location where they keep their records concerning the Collateral, or (d)
open a new place of business, unless the Borrowers shall have given the Lender
prior written notice thereof and shall at their cost and expense have executed,
delivered, acknowledged, filed, recorded or registered all financing statements
and other documents as may be required by the Lender in order to create,
perfect, continue, preserve, confirm or validate the security interest and lien
of the Lender on the Collateral and their priority; provided, that the Borrowers
shall not in any event change the location of any Collateral if such change
would cause the security interest and lien of the Lender on the Collateral (or
the perfection thereof) to lapse, or if required to be perfected prior to such
change, to cease to be perfected.

    

    5.13.     Fiscal
year.  The Borrowers shall not change their fiscal
year.

    

    5.14.     Affiliates.  The
Borrowers shall not enter into or participate in any transaction with an
affiliate except on terms and at rates no more favorable than those which would
have prevailed in an arm’s length transaction between unrelated third
parties.

    

    5.15.     ERISA.  The
Borrowers shall not engage in any “prohibited transaction” (as such term is
defined by ERISA), incur any “accumulated funding deficiency” (as such term is
defined by ERISA) whether or not waived, or terminate any Plan in a manner which
could result in the imposition of a lien on any property of the Borrowers
pursuant to the provisions of ERISA.

    

    5.16.     Sale and
Leaseback.  The Borrowers shall not enter into any arrangement
whereby the Borrowers sell or transfer all or a substantial part of their fixed
assets then owned by them and thereupon, or within one (1) year thereafter, rent
or lease the assets so sold or transferred from the purchaser or transferee (or
their respective successors and assigns).

    

    5.17.     Financing
Statements.  The Borrowers shall not file or cause to be filed
any amendments, correction statements, or termination statements concerning the
Collateral without the prior written consent of the Lender.

    

    5.18.  
  Contingent
Cash Consideration Payments.  The Borrowers shall not, without
the prior written consent of the Lender, make any contingent cash consideration
payments unless (A) the Borrowers demonstrate, in the form of a signed
compliance certificate, pro
forma compliance with the financial covenants set forth in Section 5 of
this Agreement after giving effect to such payment and (B) no Event of Default
shall have occurred and be continuing (or shall occur as a result of making such
payment).

     

    
      
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    5.19. Subordinated Promissory
Notes.  HoldCo shall not materially amend either of the
Promissory Notes (as such term is defined in the Contribution Agreement) without
the prior written consent of the Lender, which consent shall not be unreasonably
withheld, delayed or conditioned.

    

    SECTION 6.  Events of
Default.  The occurrence of any one or more of the following
events shall constitute a default under the provisions of this Agreement, and
the term “Event of
Default” shall mean, whenever it is used in this Agreement, any one or
more of the following events (and the term “Default” as used
herein means one or more of the following events, whether or not any requirement
for the giving of notice, the lapse of time, or both has been
satisfied):

    

    6.1.     Payment of
Obligations.  The failure of the Borrowers to pay any of the
Obligations as and when  the same becomes due and payable in
accordance with the provisions of this Agreement, the Notes, and/or any of the
other Financing Documents, whether at the due date thereof, at a date fixed for
prepayment thereof or by acceleration thereof;

    

    6.2.     Certain Provisions of this
Agreement. The failure of the Borrowers to perform any of their
obligations under Sections 4.2, 4.5, 4.14, or Section 5 of this
Agreement;

    

    6.3.     Perform, etc. Provisions of
This Agreement.  The failure of the Borrowers to perform,
observe or comply with any of the provisions of this Agreement other than those
covered by Section 6.1 or Section 6.2, and such failure is not cured within a
period of thirty (30) days after the delivery of written notice thereof by the
Lender to the Borrowers;

    

    6.4.     Representations and
Warranties.  If any representation and warranty contained
herein or any statement or representation made in any certificate or any other
written information at any time given by or on behalf of the Borrowers or
furnished by the Borrowers in connection with this Agreement or any of the other
Financing Documents shall prove to be false, incorrect or misleading in any
material respect on the date as of which made;

    

    6.5.     Default under Other
Financing Documents.  The occurrence of a default (as defined
and described therein) by the Borrowers or any other party or parties under the
provisions of the Notes or any of the other Financing Documents which is not
cured within applicable cure periods, if any;

    

    6.6.     Liquidation, Termination,
Dissolution, etc.  If any Borrower shall liquidate, dissolve or
terminate its existence, unless otherwise expressly permitted
hereunder;

     

    
      
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    6.7.     Default under Other
Indebtedness.  If any Borrower shall default in any payment of
(a) any other indebtedness owing to the Lender, or (b) an indebtedness in excess
of $250,000 owing to any other party beyond the period of grace, if any,
provided in the instrument or agreement under which such indebtedness was
created, or default in the observance or performance of any other agreement or
condition relating to any such indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur, in each case,  the effect of which default or other event is to
cause or to permit the holder or holders of such indebtedness or beneficiary or
beneficiaries of such indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of
notice, if required, such indebtedness to become due prior to its stated
maturity;

    

    6.8.     Attachment or
Forfeiture.  The issuance of any forfeiture, attachment or
garnishment against property or credits of any Borrower serving as Collateral,
or the issuance of any attachment or garnishment against any other property or
credits of any Borrowers for an amount in excess, singly or in the aggregate, of
$100,000, which shall not have been vacated, discharged, stayed or bonded
pending appeal within 30 days after the issuance thereof;

    

    6.9.     Judgments.  One
or more judgments or decrees shall be entered against any Borrowers involving in
the aggregate a liability in excess of $100,000, and all such judgments or
decrees shall not have been vacated, discharged, stayed or bonded pending appeal
within 30 days after the entry thereof;

    

    6.10.   Inability to Pay Debts,
etc.  If any Borrower shall admit its inability to pay its
debts as they mature or shall make any assignment for the benefit of any of its
creditors;

    

    6.11.   Bankruptcy.  If
proceedings in bankruptcy, or for reorganization of any Borrower under the
United States Bankruptcy Code (as amended) or any part thereof, or under any
other applicable laws, whether state or federal, for the relief of debtors, now
or hereafter existing, shall be commenced against or by any Borrowers and,
except with respect to any such proceedings instituted by a Borrower, shall not
be discharged within ninety (90) days of their commencement;

    

    6.12.   Receiver,
etc.  A receiver or trustee shall be appointed for any Borrower
or for any substantial part of the Borrowers’ assets, or any proceedings shall
be instituted for the dissolution or the full or partial liquidation of any
Borrower and, except with respect to any such appointments requested or
instituted by the Borrowers, such receiver or trustee shall not be discharged
within ninety (90) days of his or her appointment, and, except with respect to
any such proceedings instituted by any Borrower, such proceedings shall not be
discharged within ninety (90) days of their commencement;

    

    6.13.   Change in Ownership or
Control, or Key Management.  The majority ownership or voting
control of any Borrower is directly or indirectly sold, assigned, transferred,
encumbered or otherwise conveyed without the prior written consent of the
Lender, which consent shall not be unreasonably withheld, except as otherwise
permitted hereunder (which shall include the contribution or transfer by HoldCo
to the Company of the limited liability company interest of TAG), or Leonard
Moodispaw shall cease (for any reason) to serve in a management role for HoldCo
and a replacement who is reasonably acceptable to the Lender is not hired within
ninety (90) days following his departure from HoldCo;

     

    
      
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    6.14.     Financial
Condition.  The occurrence of any change in the financial
condition of any Borrowers which in the good faith judgment of the Lender is
materially adverse, and any such change is not cured to the reasonable
satisfaction of the Lender within thirty (30) days after the date of written
notice thereof by the Lender to the Borrowers;

    

    6.15. 
Financing  Documents
Unenforceable.  Any Financing Document shall cease to be
enforceable for any reason or any Borrower shall assert in writing that any
Financing Document is unenforceable, or any lien purported to be created by any
Financing Document and required hereunder or thereunder to be perfected shall
(except as otherwise expressly permitted in this Agreement or the other
Financing Documents) cease to be a valid first lien and prior perfected security
interest in the securities, assets or properties covered thereby, or the
Borrowers shall assert in writing that any security interest purported to be
created by any Financing Document and required hereunder or thereunder to be
perfected is not (except as otherwise expressly permitted in this Agreement or
the other Financing Documents) a valid first lien and prior perfected security
interest in the securities, assets or properties purported to be covered
thereby.

    

    SECTION
7.  Rights
and Remedies.

    

    7.1.     Rights and
Remedies.  If any Event of Default shall occur and be
continuing, the Lender may (i) declare the Credit Facilities hereunder and any
obligation or commitment of the Lender hereunder to make Advances to or issue
Letters of Credit for the account of the Borrowers to be terminated, whereupon
the same shall forthwith terminate, and (ii) declare the unpaid principal amount
of the Notes, together with accrued and unpaid interest thereon, and all other
Obligations then outstanding to be immediately due and payable, whereupon the
same shall become and be forthwith due and payable by the Borrowers to the
Lender, without presentment, demand, protest or notice of any kind, all of which
are expressly waived by the Borrowers; provided that in the case of
any Event of  Default referred to in Sections 6.11 or 6.12 above, the
Credit Facilities hereunder and any obligation or commitment of the Lender
hereunder to make Advances  to, or issue Letters of Credit for the
account of, the Borrowers shall immediately and automatically terminate and the
unpaid principal amount of the Notes, together with accrued and unpaid interest
thereon, and all other Obligations then outstanding shall be automatically and
immediately due and payable by the Borrowers to the Lender without notice,
presentment, demand, protest or other action of any kind, all of which are
expressly waived by the Borrowers.  Upon the occurrence and during the
continuation of any Event of  Default, then in each and every case,
the Lender shall be entitled to exercise in any jurisdiction in which
enforcement thereof is sought, the following rights and remedies, in addition to
the rights and remedies available to the Lender under the other provisions of
this Agreement and the other Financing Documents, the rights and remedies of a
secured party under the Uniform Commercial Code and all other rights and
remedies available to the Lender under applicable law, all such rights and
remedies being cumulative and enforceable alternatively, successively or
concurrently:

    

    (a)          The
Lender shall have the right to take possession of the Collateral, and for that
purpose, so far as the Borrowers may give authority therefor or to the extent
permitted under applicable laws, to enter upon any premises on which the
Collateral or any part thereof may be situated and remove therefrom all or any
of the Collateral without any liability for suit, action or other
proceeding.  THE BORROWERS HEREBY WAIVE ANY AND ALL RIGHTS TO PRIOR
NOTICE AND TO JUDICIAL HEARING WITH RESPECT TO REPOSSESSION OF COLLATERAL, and
require the Borrowers, at the Borrowers’ expense, to assemble and deliver all or
any of the Collateral to such place or places as the Lender may
designate.

     

    
      
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    (b)          The
Lender shall have the right to operate, manage and control all or any of the
Collateral (including use of the Collateral and any other property or assets of
the Borrowers in order to continue or complete performance of the Borrowers’
obligations under any contracts of Borrowers), or permit the Collateral or any
portion thereof to remain idle or store the same, and collect all rents and
revenues therefrom and sell, lease or otherwise dispose of any or all of the
Collateral upon such terms and under such conditions as the Lender, in its sole
discretion, may determine, and purchase or acquire any of the Collateral at any
such sale or other disposition, all to the extent permitted by applicable
law.  Any purchaser or lessee of any of the Collateral so sold or
leased shall hold the property so sold or leased free from any claim or right of
the Borrowers and the Borrowers hereby waive (to the extent permitted by law)
all rights of redemption, stay or appraisal with respect thereto.  The
Lender and the Borrowers agree that commercial reasonableness and good faith
require the Lender to give to the Borrowers no more than five (5) days prior
written notice of any public sale or other disposition of the Collateral or of
the time after which any private sale or other disposition of the Collateral is
to be made.

    

    (c)          The
Lender shall have the right, and the Borrowers hereby irrevocably designate and
appoint the Lender and its designees as the attorney-in-fact of the Borrowers,
with power of substitution and with power and authority in the Borrowers’ name,
the Lender’s name or otherwise and for the use and benefit of the Lender (i) to
notify persons obligated to make payments or other remittances on or with
respect to the Collateral to make such payments and other remittances directly
to the Lender, (ii) to demand, collect, sue for, take control of, compromise,
settle, change the terms of, release, exchange, substitute, extend, renew or
otherwise deal with, the Collateral or any person obligated on or under the
Collateral in any manner as the Lender may deem advisable, (iii) to remove from
any place of business of the Borrowers copies of (or, if deemed by the Lender to
be reasonably necessary, originals of) all records in respect of the Collateral
and, at the cost and expense of the Borrowers, to make use of any place of
business of the Borrowers as may be necessary or desirable to administer,
control, collect, sell or otherwise dispose of the Collateral, (iv) to receive
and endorse the Borrowers’ name on any checks, drafts, money orders or other
instruments of payment relating to any of the Collateral, (v) to sign any proofs
of claim or loss, (vi) to commence, prosecute or defend any action, suit or
proceeding relating to the Collateral or the collection, enforcement or
realization upon the Collateral, (vii) to adjust and compromise any claims under
insurance policies, and (viii) to use, sell, assign, transfer, pledge, make any
agreement with respect to or otherwise deal with any or all of the Collateral
and to do all other acts and things necessary to carry out this Agreement as
though the Lender were absolute owner of the Collateral.  This power
of attorney, being coupled with an interest, is irrevocable and all acts by the
Lender and its designees pursuant thereto are hereby ratified and confirmed by
the Borrowers.  Neither the Lender nor any of its designees shall be
liable for any acts of commission or omission, nor for any error of judgment or
mistake of fact or law other than acts of actual fraud, willful misconduct or
gross negligence.  The provisions of this subsection shall not (x) be
construed as requiring or obligating the Lender or any designee to take any
action authorized hereunder and any action taken or any action not taken
hereunder shall not give rise to any liability on the part of the Lender or its
designees or to any defense, claim, counterclaim or offset in favor of the
Borrowers, (y) be construed to mean the Lender has assumed any of the
obligations of the Borrowers under any instrument or agreement as the Lender
shall not be responsible in any way for the performance of the Borrowers of any
of the provisions thereof, and (z) relieve the Borrowers of any of its
obligations hereunder or in any way limit the exercise by the Lender of any
other or further rights it may have hereunder, under the other Financing
Documents, by law or otherwise.

     

    
      
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    7.2.     Default
Rate.  Notwithstanding the entry of any decree, order, judgment
or other judicial action, upon the occurrence of an Event of Default hereunder,
the unpaid principal amount of the Notes and all other monetary Obligations
outstanding or becoming outstanding while such Event of Default exists shall
bear interest from the date of such Event of  Default until such Event
of Default has been cured, at a floating and fluctuating per annum rate of
interest equal at all times to the Default Rate, irrespective of whether or not
as a result thereof, the Notes or any of the Obligations has been declared due
and payable or the maturity thereof accelerated.  The Borrowers shall
on demand from time to time pay such interest to the Lender and the same shall
be a part of the Obligations hereunder.

    

    7.3.     Liens,
Set-Off.  As security for the payment of the Obligations and
the performance of the Financing Documents, the Borrowers hereby grant to the
Lender a continuing security interest and lien on, in and upon all indebtedness
owing to, and all deposits (general or special), credits, balances, monies,
securities and other property of, the Borrowers and all proceeds thereof, both
now and hereafter held or received by, in transit to, or due by, the
Lender.  In addition to, and without limitation of, any rights of the
Lender under applicable laws, if any Event of  Default occurs and is
continuing, the Lender may at any time and from time to time thereafter during
the continuance of such Event of Default, without notice to the Borrowers,
set-off, hold, segregate, appropriate and apply at any time and from time to
time thereafter all such indebtedness, deposits, credits, balances (whether
provisional or final and whether or not collected or available), monies,
securities and other property toward the payment of all or any part of the
Obligations in such order and manner as the Lender in its sole discretion may
determine and whether or not the Obligations or any part thereof shall then be
due or demand for payment thereof made by the Lender.

    

    7.4.     Enforcement
Costs.  The Borrowers agree to pay to the Lender on demand (a)
all Enforcement Costs paid, incurred or advanced by or on behalf of the Lender
including, without limitation, reasonable attorneys’ fees, costs and expenses,
and (b) interest on such Enforcement Costs from the date payment for the same is
demanded until paid in full at a per annum rate of interest equal at all times
to the Default Rate.  All Enforcement Costs, with interest as above
provided, shall be a part of the Obligations hereunder.

     

    
      
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    7.5      Collateral
Account.  If any Event of Default shall occur and be
continuing, and the Lender shall elect to terminate the Revolving Credit
Facility, the Borrowers at any time and from time to time during the continuance
of such Event of Default shall upon demand of the Lender deliver to the Lender
cash or U.S. Treasury Bills with maturities of not more than thirty (30) days in
an amount equal to the amount of issued or pending Letters of Credit as of such
time.  The Lender may also deposit to the Collateral Account (defined
below) any cash, monies or funds received by the Lender from the collection of
the Obligations or the sale or other disposition of the Collateral which the
Lender, in its discretion, designates as being held against issued or pending
Letters of Credit as of such time.  Such cash, monies, funds or U.S.
Treasury Bills shall be held by the Lender in an account (the “Collateral Account”)
and invested or reinvested (as the case may be) in U.S. Treasury Bills with
maturities of no more than thirty (30) days from the date of
investment.  The Lender shall have the sole power of access and
withdrawal from the Collateral Account.  As collateral and security
for the payment of the Obligations, the Borrowers hereby assign and pledge to
the Lender, and grants to the Lender a security interest in and to, all cash,
monies, funds, U.S. Treasury Bills and other securities and instruments at any
time and from time to time held by the Lender in the Collateral Account and any
interest, income, earnings and proceeds thereof, all of which shall be a part of
the Collateral hereunder.  If any Event of Default shall occur and be
continuing, the Lender is irrevocably authorized to make such withdrawals from
the Collateral Account at any time and from time to time and apply the same to
any of the Obligations (including, without limitation, Letter of Credit
Obligations) in such order and manner as the Lender in its sole discretion may
determine.  After all Obligations have been indefeasibly paid in full
and there are no Letters of Credit outstanding or any commitment on the part of
the Lender to open and issue Letters of Credit, any cash, monies, funds, U.S.
Treasury Bills or other securities and instruments held by the Lender in the
Collateral Account will be turned over to the Borrowers or to such other person
who may be entitled to the same under applicable laws.

    

    7.6.     Application of
Proceeds.  During the continuance of any Event
of  Default, any proceeds of the collection of the Obligations and/or
the sale or other disposition of the Collateral will be applied by the Lender to
the payment of Enforcement Costs, and any balance of such proceeds (if any) will
be applied by the Lender to the payment of the remaining Obligations (whether
then due or not), at such time or times and in such order and manner of
application as the Lender may from time to time in its sole discretion
determine.  If the sale or other disposition of the Collateral fails
to satisfy all of such Obligations, the Borrowers shall remain liable to the
Lender for any deficiency.

    

    7.7.
Remedies, etc.
Cumulative.  Each right, power and remedy of the Lender as
provided for in this Agreement or in the other Financing Documents or now or
hereafter existing under applicable laws or otherwise shall be cumulative and
concurrent and shall be in addition to every other right, power or remedy
provided for in this Agreement or in the other Financing Documents or now or
hereafter existing under applicable laws or otherwise, and the exercise or
beginning of the exercise by the Lender of any one or more of such rights,
powers or remedies shall not preclude the simultaneous or later exercise by the
Lender of any or all such other rights, powers or remedies.

    

    7.8.     No Waiver,
Etc.  No failure or delay by the Lender to insist upon the
strict performance of any term, condition, covenant or agreement of this
Agreement or of the other Financing Documents, or to exercise any right, power
or remedy consequent upon a breach thereof, shall constitute a waiver of any
such term, condition, covenant or agreement or of any such breach, or preclude
the Lender from exercising any such right, power or remedy at any later time or
times.  By accepting payment after the due date of any amount payable
under this Agreement or under any of the other Financing Documents, the Lender
shall not be deemed to waive the right either to require prompt payment when due
of all other amounts payable under this Agreement or under any of the other
Financing Documents, or to declare an Event of  Default for failure to
effect such prompt payment of any such other amount.  The payment by
the Borrowers or any other person and the acceptance by the Lender of any amount
due and payable under the provisions of this Agreement or the other Financing
Documents at any time during which an Event of Default exists shall not in any
way or manner be construed as a waiver of such Event of Default by the Lender or
preclude the Lender from exercising any right of power or remedy consequent upon
such Event of Default.

     

    
      
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    7.9      Arbitration.

    

    (a)       This
paragraph concerns the resolution of any controversies or claims between the
parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i) this
Agreement (including any renewals, extensions or modifications); or (ii) any
document related to this Agreement (collectively a “Claim”).  For
the purposes of this arbitration provision only, the term “parties” shall
include any parent corporation, subsidiary or affiliate of the Lender involved
in the servicing, management or administration of any obligation described or
evidenced by this Agreement.

    

    (b)       At
the request of any party to this Agreement, any Claim shall be resolved by
binding arbitration in accordance with the Federal Arbitration Act (Title 9,
U.S. Code) (the “Act”).  The
Act will apply even though this Agreement provides that it is governed by the
law of a specified state.  The arbitration will take place on an
individual basis without resort to any form of class action.

    

    (c)       Arbitration
proceedings will be determined in accordance with the Act, the then-current
rules and procedures for the arbitration of financial services disputes of the
American Arbitration Association or any successor thereof (“AAA”), and the terms
of this paragraph.  In the event of any inconsistency, the terms of
this paragraph shall control.  If AAA is unwilling or unable to (i)
serve as the provider of arbitration or (ii) enforce any provision of this
arbitration clause, any party to this agreement may substitute another
arbitration organization with similar procedures to serve as the provider of
arbitration.

    

    (d)       The
arbitration shall be administered by AAA and conducted in Washington,
D.C.  All Claims shall be determined by one arbitrator; however, if
Claims exceed Five Million Dollars ($5,000,000), upon the request of any party,
the Claims shall be decided by three arbitrators.  All arbitration
hearings shall commence within ninety (90) days of the demand for arbitration
and close within ninety (90) days of commencement and the award of the
arbitrator(s) shall be issued within thirty (30) days of the close of the
hearing.  However, the arbitrator(s), upon a showing of good cause,
may extend the commencement of the hearing for up to an additional sixty (60)
days.  The arbitrator(s) shall provide a concise written statement of
reasons for the award.  The arbitration award may be submitted to any
court having jurisdiction to be confirmed, judgment entered and
enforced.

    

    (e)       The
arbitrator(s) will give effect to statutes of limitation in determining any
Claim and may dismiss the arbitration on the basis that the Claim is barred. For
purposes of the application of the statute of limitations, the service on AAA
under applicable AAA rules of a notice of Claim is the equivalent of the filing
of a lawsuit.  Any dispute concerning this arbitration provision or
whether a Claim is arbitrable shall be determined by the
arbitrator(s).  The arbitrator(s) shall have the power to award
reasonable legal fees pursuant to the terms of this Agreement.

     

    
      
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    (f)        This
paragraph does not limit the right of any party to: (i) exercise self-help
remedies, such as but not limited to, setoff; (ii) initiate judicial or
non-judicial foreclosure against any real or personal property collateral; (iii)
exercise any judicial or power of sale rights, or (iv) act in a court of law to
obtain an interim remedy, such as but not limited to, injunctive relief, writ of
possession or appointment of a receiver, or additional or supplementary
remedies.

    

    (g)       The
filing of a court action is not intended to constitute a waiver of the right of
any party, including the suing party, thereafter to require submittal of the
Claim to arbitration.

    

    (h)       By
agreeing to binding arbitration, the parties irrevocably and voluntarily waive
any right they may have to a trial by jury in respect of any
Claim.  Furthermore, without intending in any way to limit this
agreement to arbitrate, to the extent any Claim is not arbitrated, the parties
irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim.  This provision is a material inducement for
the parties entering into this Agreement.

    

    SECTION
8.  Miscellaneous.

    

    8.1.      Course of Dealing;
Amendment.  No course of dealing between the Lender and the
Borrowers shall be effective to amend, modify or change any provision of this
Agreement or the other Financing Documents.  The Lender shall have the
right at all times to enforce the provisions of this Agreement and the other
Financing Documents in strict accordance with the provisions hereof and thereof,
notwithstanding any conduct or custom on the part of the Lender in refraining
from so doing at any time or times.  The failure of the Lender at any
time or times to enforce its rights under such provisions, strictly in
accordance with the same, shall not be construed as having created a custom in
any way or manner contrary to specific provisions of this Agreement or the other
Financing Documents or as having in any way or manner modified or waived the
same.  This Agreement and the other Financing Documents to which the
Borrowers are a party may not be amended, modified, or changed in any respect
except by an agreement in writing signed by the Lender and the
Borrowers.

    

    8.2.    
Waiver of
Default.  The Lender may, at any time and from time to time,
execute and deliver to the Borrowers a written instrument waiving, on such terms
and conditions as the Lender may specify in such written instrument, any of the
requirements of this Agreement or of the other Financing Documents or any Event
of Default or Default and its consequences, provided, that any such waiver shall
be for such period and subject to such conditions as shall be specified in any
such instrument.  In the case of any such waiver, the Borrowers and
the Lender shall be restored to their former positions prior to such Event of
Default or Default and shall have the same rights as they had
hereunder.  No such waiver shall extend to any subsequent or other
Event of Default or Default, or impair any right consequent thereto and shall be
effective only in the specific instance and for the specific purpose for which
given.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    8.3.      Notices.  All
notices, requests and demands to or upon the parties to this Agreement shall be
deemed to have been given or made when delivered by hand, or when received after
being deposited in the mail, postage prepaid by registered or certified mail,
return receipt requested,  one day after being sent by reputable
overnight delivery service, or, in the case of notice by telegraph, telex or
facsimile transmission, when properly transmitted, addressed as follows or to
such other address as may be hereafter designated in writing by one party to the
other:

    

      If
to any Borrower:

    

    The KEYW Holding
Corporation

    1334 Ashton Road, Suite A

    Hanover, Maryland 21076

    Attention:  Mr. Leonard
Moodispaw, Chief Executive Officer

     

    With a copy to:

     

    Hogan
& Hartson L.L.P.

    Harbor
East

    100
International Drive, Suite 2000

    Baltimore,
Maryland  21202

    Attention:  A.
Lynne Puckett, Esquire

    

    Lender:              Bank
of America, N.A.

    MD9-978-04-01

    1101
Wootton Parkway, 4th Floor

    Rockville,
MD 20852

     
Attention:    Mark A. Zirkle, Vice President

     

    With a copy to:

    

    Ober,
Kaler Grimes & Shriver,

    A
Professional Corporation

    1401 H
Street, N.W.

    Washington,
D.C. 20005

    Attention:
Nikolaus F. Schandlbauer, Esquire

    Telecopy
No.: 202-408-0640

    

    except in
cases where it is expressly herein provided that such notice, request or demand
is not effective until received by the party to whom it is
addressed.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    8.4.     Right to
Perform.  For so long as an Event of Default has occurred and
is continuing, then and in each such case, the Lender may (but shall be under no
obligation whatsoever to) upon concurrent notice to or demand upon the Borrowers
remedy any such failure by advancing funds or taking such action as it deems
appropriate for the account and at the expense of the Borrowers.  The
advance of any such funds or the taking of any such action by the Lender shall
not be deemed or construed to cure an Event of Default or waive performance by
the Borrowers of any provisions of this Agreement.  The Borrowers
shall pay to the Lender on demand, together with interest thereon from the date
of such demand until paid in full at a per annum rate of interest equal at all
times to the Default Rate, any such funds so advanced by the Lender and any
costs and expenses advanced or incurred by or on behalf of the Lender in taking
any such action, all of which shall be a part of the Obligations
hereunder.

    

    8.5.     Indemnification.  The
Borrowers agree hereby to indemnify and hold the Lender harmless from any loss,
liability, damages, judgments, and costs of any kind brought by third parties
relating to or arising directly or indirectly out of (a) this Agreement or any
document required hereunder, (b) any credit extended or committed by the Lender
to the Borrowers hereunder, and (c) any litigation or proceeding related to or
arising out of this Agreement, any such document, or any such credit except to
the extent such loss, liability, damage, judgment or cost is the result of
Lender’s gross negligence or willful misconduct.  This indemnity
includes but is not limited to reasonable attorneys' fees.  This
indemnity extends to the Lender, its parent, subsidiaries and all of its
directors, officers, employees, agents, successors, attorneys, and assigns;
provided, however, that no Borrower shall be liable for the payment of any
portion of any loss, liability, damages, judgments, and costs of any kind as a
result of the gross negligence or willful misconduct of a director, officer,
employee, agent, successor or attorney of the Lender.  This indemnity
will survive repayment of the Borrowers’ obligations to the
Lender.  All sums due to the Lender hereunder shall become Obligations
of the Borrowers, due and payable immediately without demand.

    

    8.6.     Costs and
Expenses.  The Borrowers agree to promptly pay to the Lender on
demand, all such fees, recordation and other taxes, costs and expenses of
whatever kind and nature, including reasonable attorney’s fees and
disbursements, which the Lender may incur or which are payable in connection
with the closing and the administration of the Credit Facilities, including,
without limitation, the preparation of this Agreement and the other Financing
Documents, the recording or filing of any and all of the Financing Documents and
obtaining lien searches.  All such fees, costs, recordation and other
taxes shall be a part of the Obligations hereunder.

    

    8.7.     Consent to
Jurisdiction.  The Borrowers irrevocably (a) consent and submit
to the jurisdiction and venue of any state or federal court sitting in the State
of Maryland over any suit, action or proceeding arising out of or relating to
this Agreement or any of the other Financing Documents, (b) waives, to the
fullest extent permitted by law, any objection that the Borrowers may now or
hereafter have to the laying of the venue of any such suit, action or proceeding
brought in any such court and any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum, and (c)
consents to the service of process in any such suit, action or proceeding in any
such court by the mailing of copies of such process to the Borrowers by
certified or registered mail at the Borrowers’ address set forth herein for the
purpose of giving notice.

    

    8.8.    WAIVER OF JURY
TRIAL.  THE BORROWERS AND THE LENDER HEREBY VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THE CREDIT FACILITIES, THIS AGREEMENT OR ANY OF THE OTHER
FINANCING DOCUMENTS.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    8.9.     Certain Definitional
Provisions.   All terms defined in this Agreement shall
have such defined meanings when used in any of the other Financing
Documents.  Accounting terms used in this Agreement shall have the
respective meanings given to them under generally accepted accounting principles
in effect from time to time in the United States of America.  The
words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement.  As used herein, the singular
number shall include the plural, the plural, the singular and the use of the
masculine, feminine or neuter gender shall include all genders, as the context
may require.  Unless otherwise defined herein, all terms used herein
which are defined by the Uniform Commercial Code shall have the same meanings as
assigned to them by the Uniform Commercial Code unless and to the extent varied
by this Agreement.

    

    8.10.   Severability.  The
invalidity, illegality or unenforceability of any provision of this Agreement
shall not affect the validity, legality or enforceability of any of the other
provisions of this Agreement which shall remain effective.

    

    8.11.   Survival.  All
representations, warranties and covenants contained among the provisions of this
Agreement shall survive the execution and delivery of this Agreement and all
other Financing Documents.

    

    8.12.   Binding
Effect.  This Agreement and all other Financing Documents shall
be binding upon and inure to the benefit of the Borrowers and the Lender and
their respective personal representatives, successors and assigns, except that
the Borrowers shall not have the right to assign their rights hereunder or any
interest herein without the prior written consent of the Lender.

    

    8.13.   Applicable Law and Time of
Essence.  This Agreement and the rights and obligations of the
parties hereunder shall be construed and interpreted in accordance with the laws
of the State of Maryland, both in interpretation and
performance.  Time is of the essence in connection with all
obligations of the Borrowers hereunder and under any of the other Financing
Documents.

    

    8.14.   Duplicate Originals and
Counterparts.  This Agreement may be executed in any number of
duplicate originals or counterparts, each of such duplicate originals or
counterparts shall be deemed to be an original and all taken together shall
constitute but one and the same instrument.

    

    8.15.   Headings.  Section
and subsection headings in this Agreement are included herein for convenience of
reference only, shall not constitute a part of this Agreement for any other
purpose and shall not be deemed to affect the meaning or construction of any of
the provisions hereof.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    8.16    Public Use of Borrowers’
Name. With the Borrowers’ permission, the Lender may in its discretion
use the Borrowers’ corporate name in press releases, public announcements and
other promotional items or literature of the Lender.  To that end, the
Borrowers hereby
consent to the creation of one or more items commemorating this transaction and
use information related to the transaction in internal
communications.  In addition, the Borrowers hereby consent to the
Lender’s use of the Borrowers name and information related to this transaction
in connection with marketing, press releases or other transactional
announcements or updates provided to investor or trade publications.

    

    8.17    Termination of Security
Interest. Upon payment in full of the outstanding Obligations and the
termination of any obligation of the Lender to make Advances hereunder, the
security interest granted hereby shall terminate and all rights to the
Collateral shall revert to the Borrowers.   Upon any such
termination, the Lender will execute and deliver to the Borrowers such documents
as the Borrowers shall reasonably request to evidence such
termination.

    

    8.18    Joint and Several Liability,
Etc. The Borrowers shall be jointly and severally liable for the payment
and performance of the Obligations.  The Lender may, without notice to
or consent of any of the Borrowers and with or without consideration, release,
discharge, compromise or settle with, waive, grant indulgences to, proceed
against or otherwise deal with, any of the Borrowers without in any way
affecting, limiting, modifying, discharging or releasing any of the obligations
and liabilities under this Agreement or any other Financing Documents of the
other Borrowers.  Each of the Borrowers consents and agrees that (a)
the Lender shall be under no obligation to marshall any assets in favor of such
Borrower or against or in payment of any or all of the obligations and
liabilities of such Borrower under this Agreement or any of the other Financing
Documents, (b) any rights such Borrower may have against the other Borrowers for
contribution, exoneration from payment or otherwise, in respect of any amounts
paid by such Borrower pursuant to any of the Financing Documents or which
continue to be owing pursuant to any of the Financing Documents, shall be
postponed until the Obligations have been indefeasibly paid in full and no
commitments therefor are outstanding and (c) the Lender may enforce and collect
the obligations and liabilities of such Borrower hereunder or under the other
Financing Documents irrespective of any attempt, pursuit, enforcement or
exhaustion of any rights and remedies the Lender may at any time have to collect
the obligations and liabilities hereunder or under the other Financing Documents
of the other Borrowers.

    

    8.19    No Advisory or Fiduciary
Responsibility.  In connection
with all aspects of each transaction contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any
other Financing Document),  each Borrower acknowledges and agrees
that:  (i) (A)  the services evidenced by this Agreement
provided by Lender are arm’s-length commercial transactions between such
Borrower and Lender, (B) each Borrower has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate, and
(C)  each Borrower is capable of evaluating and understanding, and
understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other Financing Documents; (ii)
(A)  Lender  is and has been acting solely as a principal
and, has not been, is not, and will not be acting as an advisor, agent or
fiduciary, for Borrowers or any other Person and (B) Lender does not have any
obligation to Borrowers with respect to the transaction contemplated hereby
except those obligations expressly set forth herein and in the other Financing
Documents; and (iii)  Lender may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrowers, and
Lender has no obligation to disclose any of such interests to  the
Borrowers.  To the fullest extent permitted by law, each Borrower
hereby waives and releases any claims that it may have against Lender with
respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    8.20    USA PATRIOT Act
Notice.  The Lender hereby notifies the Borrowers that pursuant
to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed
into law October 26, 2001)), it is required to obtain, verify and record
information that identifies each Borrower, which information includes the name
and address of each Borrower and other information that will allow the Lender to
identify each Borrower in accordance with such Act.

    

    [signature page
follows]

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, each of the parties
hereto have executed and delivered this Agreement under their respective seals
as of the day and year first written above.

    

    
      
        	
                WITNESS:

              	 
      	
                THE
      KEYW HOLDING CORPORATION

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/
      Terry L. Jasek

              	 
      	
                By:

              	
                /s/
      Leonard E. Moodispaw

              	
                (SEAL)

              
	 
      	 
      	  Name: 	
                Leonard
      E. Moodispaw

              	 
      
	 
      	 
      	   Title:
      	
                Chief
      Executive Officer

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                WITNESS:

              	 
      	
                THE
      KEYW CORPORATION

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/
      Terry L. Jasek

              	 
      	
                By:

              	
                /s/
      Leonard E. Moodispaw

              	
                (SEAL)

              
	 
      	 
      	  Name: 	
                Leonard
      E. Moodispaw

              	 
      
	 
      	 
      	  Title:
      	
                Chief
      Executive Officer

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                WITNESS:

              	 
      	
                INTEGRATED
      COMPUTER CONCEPTS, INCORPORATED

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/
      Terry L. Jasek

              	 
      	
                By:

              	
                /s/
      John E. Krobath

              	
                (SEAL)

              
	 
      	 
      	  Name: 	
                John
      E. Krobath

              	 
      
	 
      	 
      	  Title:
      	
                Chief
      Financial Officer

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                WITNESS:

              	 
      	
                S&H
      ENTERPRISES OF

              	 
      
	 
      	 
      	
                CENTRAL
      MARYLAND, INC.

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/
      Terry L. Jasek

              	 
      	
                By:

              	
                /s/
      John E. Krobath

              	
                (SEAL)

              
	 
      	 
      	  Name: 	
                John
      E. Krobath

              	 
      
	 
      	 
      	  Title:
      	
                Chief
      Financial Officer

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                WITNESS:

              	 
      	
                THE
      ANALYSIS GROUP, LLC

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/
      Terry L. Jasek

              	 
      	
                By:

              	
                /s/
      John E. Krobath

              	
                (SEAL)

              
	 
      	 
      	
                  Name: 

              	
                John
      E. Krobath

              	 
      
	 
      	 
      	  Title:
      	
                Chief
      Financial Officer

              	 
      

      

    

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                WITNESS:

              	 
      	
                BANK
      OF AMERICA, N.A.

              	 
      
	 
      	 
      	 
      	 
      	 
      
	
                /s/ Carrie Helms

              	 
      	
                By:

              	
                /s/ Mark A. Zirkle

              	
                (SEAL)

              
	 
      	 
      	 
      	
                Mark
      A. Zirkle

              	 
      
	 
      	 
      	 
      	
                Vice
      President

              	 
      

      

    

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3

    

    Exceptions
to Borrowers’ Representations and Warranties

    

    Section
3.3

    

    coreservlets.com,
Inc., a close corporation incorporated in the State of Maryland

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3.7

    

    Borrowers’
Name and Business Locations

    

    The KEYW
Holding Corporation

    1334
Ashton Road, Suite A

    Hanover,
Maryland 21076

    

    The KEYW
Corporation

    1334
Ashton Road, Suite A

    Hanover,
Maryland 21076

    

    Integrated
Computer Concepts, Incorporated

    1334
Ashton Road, Suite A

    Hanover,
Maryland 21076

    

    S&H
Enterprises of Central Maryland, Inc. (formerly S&H Enterprises,
Inc.)

    1334
Ashton Road, Suite A

    Hanover,
Maryland 21076

    

    The
Analysis Group, LLC

    1334
Ashton Road, Suite A

    Hanover,
Maryland 21076

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3.15

    

    Borrowers’
Intellectual Property

    

    Books
written by Martin Hall of coreservlets.com, Inc. (a subsidiary of Integrated
Computer Concepts, Incorporated) and published by Prentice Hall and Sun
Microsystems Press to include various editions of Core Servlets & JavaServer
Pages Vols. I and II, More Servlets & JavaServer Pages, and Core Web
Programming.

     

    *This
list does not include customary domain names, logos or any license required in
the ordinary course of doing business.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
5.5

    (Existing
Indebtedness)

    

    Subordinated
Unsecured Promissory Note, dated as of February 22, 2010, in the original
principal sum of $3,400,000 from HoldCo to the order of TAG Holdings,
LLC.

    

    Subordinated
Unsecured Promissory Note, dated as of February 22, 2010, in the original
principal sum of $8,251,076 from HoldCo to the order of TAG Holdings,
LLC.

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
A

    

    Form
of Borrowing Base Certificate

    [to
be provided in electronic form by Lender]

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     Exhibit
B

    

    FORM
OF ADVANCE/CONTINUATION REQUEST

    

    Date:  ___________,
_____

    
      	
              To:

            	
              Bank
      of America, N.A.

            

    

     

    
      Ladies
and Gentlemen:

    

     

    Reference
is made to that certain Credit and Security Agreement, dated as of February 22,
2010 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among The KEYW Holding
Corporation, a Maryland corporation, The KEYW Corporation, a Maryland
corporation, Integrated Computer Concepts, Incorporated, a Maryland corporation,
S&H Enterprises of Central Maryland, Inc., a Maryland corporation, and The
Analysis Group, LLC, a Virginia limited liability company (collectively, “Borrowers”) and Bank
of America, N.A..

     

    The
undersigned hereby requests (select one):

     

    
      A request
for an Advance                                     
 A continuation of a Eurodollar Rate Loan

    

     

    1.         On                                                                
(a Business Day).

     

    2.         In
the amount of $                                                               .

     

    3.         With
an Interest Period of            
month(s).

     

    No
Default or Event of Default has occurred and is continuing under the
Agreement.

     

    
      
        
          
            
              	
                      THE
      KEYW HOLDING CORPORATION

                    
	 
	
                      By:

                    	 
      
	
                      Name:

                    
	
                      Title:

                    

            

          

        

      

    

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Attachment
I

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  Tier

                                	 
      	
                                  Total
      Funded Debt to 

                                  EBITDA

                                	 
      	
                                  Unused

                                  Fee

                                	 
      	
                                  Applicable
      Margin

                                	 
      	
                                  Letters
      of

                                  Credit
      Fee

                                
	
                                   

                                  1

                                	 
      	
                                   

                                  Less
      than 1.50 to 1.00

                                	 
      	
                                   

                                  25
      bps

                                	 
      	
                                   

                                  200
      bps

                                	 
      	
                                   

                                  200
      bps

                                
	
                                   

                                  2

                                	 
      	
                                   

                                  Less
      than 2.00 to 1.00 but greater than or equal to 1.50 to
1.00

                                	 
      	
                                   

                                  37.5
      bps

                                	 
      	
                                   

                                  225
      bps

                                	 
      	
                                   

                                  225
      bps

                                
	
                                   

                                  3

                                	 
      	
                                   

                                  Greater
      than or equal to 2.00 to 1.00

                                	 
      	
                                   

                                  50
      bps

                                	 
      	
                                   

                                  250
      bps

                                	 
      	
                                   

                                  250
      bps

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    bps
= basis points

     

    
      
        KEYW and
Subsidiaries

        Credit
and Security Agreement

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