Document:

Exhibit 10.35 

SECOND AMENDMENT 

THIS SECOND AMENDMENT (this “Amendment”) dated as of August 5, 2011 to the Credit Agreement referenced below is by and among THE KEYW HOLDING CORPORATION, a Maryland corporation (the “Borrower”), the Guarantors identified on the signature pages hereto (the “Guarantors”), the Lenders identified on the signature pages hereto and Bank of America, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). 

RECITALS 

WHEREAS, credit facilities have been extended to the Borrower pursuant to the Credit Agreement dated as of February 28, 2011 (as amended by that certain First Amendment dated as of April 22, 2011 and as further amended, modified, supplemented and extended from time to time, the “Credit Agreement”) among the Borrower, the Guarantors, the Lenders identified therein and the Administrative Agent; and 

WHEREAS, the Borrower has requested certain modifications to the Credit Agreement and the Lenders have agreed to the requested modifications on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

		1.	Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided for such terms in the Credit Agreement. 

		2.	Amendment.  The Credit Agreement is amended in the following respects: 

		2.1	The definition of “Aggregate Revolving Commitments” in Section 1.01 is amended and restated in its entirety to read as follows: 

“Aggregate Revolving Commitments” means the Revolving Commitments of all the Lenders. The amount of the Aggregate Revolving Commitments in effect on the effective date of the Second Amendment to this Agreement is SIXTY-FIVE MILLION DOLLARS ($65,000,000). 

		2.2	Schedule 2.01 is amended and restated in its entirety to read as Exhibit A attached hereto. For the avoidance of doubt, the Borrower’s right to increase the Aggregate Revolving Commitments pursuant to Section 2.01(b) shall not be reduced or otherwise affected by this Amendment. 

		3.	Conditions Precedent.  This Amendment shall be effective as of the date hereof upon receipt by the Administrative Agent of (a) counterparts of this Amendment duly executed by the Borrower, the Guarantors, all of the Lenders and the Administrative Agent, (b) a certificate of each Loan Party dated as of the date hereof signed by a Responsible Officer of such Loan Party certifying that the resolutions adopted by the board of directors or equivalent governing body of such Loan Party and delivered to the Administrative Agent in connection with the Credit Agreement or Joinder Agreement, as applicable, are in full force and effect and have not been amended, modified or rescinded, and (c) for the account of each Lender (including Bank of America), a fee equal to 0.375% of the aggregate principal amount of each such Lender’s increase to its Revolving Commitment as provided herein. 

		4.	Amendment is a “Loan Document”.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment. 

		5.	Representations and Warranties; No Default. Each Loan Party represents and warrants to the Administrative Agent and each Lender that after giving effect to this Amendment, (a) each of the representations and warranties of each Loan Party contained in the Credit Agreement or any other Loan Document are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are be true and correct in all material respects as of such earlier date, and (b) no Default exists. 

 

 

		6.	Reaffirmation of Obligations.  Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment and all documents, agreements and instruments executed in connection with this Amendment do not operate to reduce or discharge such Loan Party’s obligations under the Loan Documents. 

		7.	Reaffirmation of Security Interests.  Each Loan Party (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees that this Amendment and all documents, agreements and instruments executed in connection with this Amendment do not in any manner impair or otherwise adversely effect any of the Liens granted in or pursuant to the Loan Documents. 

		8.	No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect. 

		9.	Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of this Amendment by facsimile or other electronic imaging means shall be effective as an original. 

		10.	Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York. 

[SIGNATURE PAGES FOLLOW] 

 

 

Each of the parties hereto has caused a counterpart of this Second Amendment to be duly executed and delivered as of the date first above written. 

		 	
	BORROWER:	 	THE KEYW HOLDING CORPORATION, a Maryland corporation
	  	 	By:
/s/ Leonard E. Moodispaw

Name: Leonard E. Moodispaw
 Title: Chief Executive Officer

	GUARANTORS:	 	THE KEYW CORPORATION, a Maryland corporation
coreservlets.com, Inc., a Maryland corporation
Sycamore.US, Inc., a Maryland corporation
Sycamore Services, Inc., a Maryland corporation
Everest Technology Solutions, Inc., a Delaware corporation
JKA TECHNOLOGIES, INC., a Maryland corporation
Forbes Analytic Software, Inc., a Virginia corporation
	  	 	By:
/s/ Leonard E. Moodispaw

Name: Leonard E. Moodispaw
 Title: Chief Executive Officer of each of the foregoing

	  	 	INTEGRATED COMPUTER CONCEPTS, INCORPORATED,
a Maryland corporation
THE ANALYSIS GROUP, LLC, a Virginia limited liability company
S&H ENTERPRISES OF CENTRAL MARYLAND, INC., a Maryland
 corporation Insight Information Technology, LLC,
a Delaware limited liability company
	  	 	By:
/s/ John E. Krobath

Name: John E. Krobath
 Title: Chief Financial Officer of each of the foregoing

[SIGNATURE PAGES FOLLOW] 

 

 

ADMINISTRATIVE AGENT: BANK OF AMERICA, N.A., as Administrative Agent 

		 	
		 	By:
/s/ Bozena Janociak

Name: Bozena Janociak
 
Title: Vice President

	LENDERS:	 	BANK OF AMERICA, N.A.,
 as a Lender, L/C Issuer and Swing Line Lender
	  	 	By:
/s/ Mark A. Zirkle

Name: Mark A. Zirkle
 Title: Vice President

	  	 	SUNTRUST BANK
 as a Lender
	  	 	By:
/s/ Linda Bergmann

Name: Linda Bergmann
 Title: Senior Vice President

	  	 	CITIBANK NA
 as a Lender
	  	 	By:
/s/ Jessica L. Tenaza

Name: Jessica L. Teneza
 Title: Senior Vice President

 

 

Exhibit A 

Schedule 2.01 

Lenders and Commitments 

		 		 	
	Lender	 	Revolving
 Commitment	 	Revolving
 Commitment
 Percentage
	Bank of America, N.A.	 	$	33,000,000.00	 	 	 	50.769230770	% 
	SunTrust Bank	 	$	16,000,000.00	 	 	 	24.615384615	% 
	Citibank NA	 	$	16,000,000.00	 	 	 	24.615384615	% 
	Total:	 	$	65,000,000.00	 	 	 	100.000000000	%Exhibit 10.36 

AMENDMENT TO EMPLOYMENT AGREEMENT 

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the “Amendment”), made as of this 12th day of March 2012, is entered into by and between The KEYW Corporation, a Maryland corporation with its principal place of business at 1334 Ashton Road, Suite A, Hanover, MD 21076 (the “Company”) and Kimberly J. DeChello (the “Employee”). 

WHEREAS, the Company and Employee entered into an Employment Agreement dated June 16, 2010 (the “Employment Agreement”); and 

WHEREAS, pursuant to Section 9.5 of the Employment Agreement, the Company and Employee wish to amend Sections 1, 2, and 4.4(b) of the Employment Agreement to, among other things, extend the term of the Employment Agreement, provide for an automatic extension process, clarify certain employment matters requiring approval of the Board of Directors of The KEYW Holding Corporation (“Holdco”), specify a date for the Change of Control payment, and clarify the meaning of Change of Control. 

NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Amendment and the Employment Agreement, the parties agree: 

1.  The Employment Agreement is hereby amended by deleting Section 1 and replacing it with the following: 

1.  Term of Employment.  The Company hereby agrees to employ the Employee, and the Employee hereby accepts employment with the Company, upon the terms set forth in this Agreement, for the period commencing on the first date above (the “Commencement Date”), and ending on February 28, 2014 (such period, as it may be extended, the “Employment Period”), unless sooner terminated in accordance with the provisions of Section 3. On December 31, 2012, the Employment Period shall automatically be extended to February 28, 2015 unless prior to December 31, 2012, the Company notifies the Employee in writing that the
Employment Period shall not be extended. On December 31 of every year thereafter (the “Notice Date”), the Employment Period shall automatically be extended from the then current expiration date for an additional year unless prior to the Notice Date the Company notifies the Employee in writing that the Employment Period shall not be extended. For example, if this Agreement is in effect on December 31, 2013 and the Company has not notified the employee in writing that the Employment Period shall not be extended, the Employment Period would automatically be extended from February 28, 2015 to February 28, 2016. 

2.  The Employment Agreement is hereby amended by deleting Section 2 and replacing it with the following: 

2.1  The Employee agrees to the title of Executive Vice President, Secretary, Chief Administrative Officer and shall perform all duties and responsibilities associated with such title, and such other duties as may, from time to time, be designated by the Board of Directors of HoldCo. In exchange for such performance, the Company agrees to pay the Employee an initial base salary of $200,013.00 per year, subject to the approval of the Board of Directors of HoldCo, who may, from time to time, alter this base salary, plus other benefits currently provided to Employee, including but not limited to, vacation, health insurance and officers and
directors liability insurance. In addition, the Company shall reimburse the Employee for all reasonable, ordinary and necessary business, travel or entertainment expenses incurred during the Employment Period in the performance of her services hereunder in accordance with the policies of the Company as they are from time to time in effect. Except as provided in Section 3.3, in the event of a consolidation, KEYW will continue to employ the Employee pursuant to this Agreement, and Employee shall work for KEYW in a similar capacity as before the consolidation. 

2.2  Within sixty (60) days after a Change of Control (as defined in Section 4.4), KEYW or its successor in interest shall pay to the Employee a cash payment equal to two (2) times (the total of the Employee’s current base salary plus the greater of (the total cash bonuses paid during the last 24 months/2) or (current year’s target annual incentive opportunity)) subject to the execution and delivery of a Release (as described in Section 4.3). Such Release will be provided to Employee by Company within seven (7) days of a Change of Control. If Employee fails to execute and deliver the Release within 

 

 

twenty-one (21) days after receipt, or if Employee revokes such Release as provided therein, the Company shall have no obligation to provide the Change of Control payment described above. 

3.  The Employment Agreement is hereby amended by deleting Section 4.4(b) and replacing it with the following: 

4.4(b)  For the purposes of this Section 4.4, “Change of Control” means the occurrence of any of (i) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended) of in excess of 50% of the voting securities of the Company or HoldCo, (ii) the dissolution or liquidation of the Company or HoldCo or a merger, consolidation, or reorganization of the Company or HoldCo with one or more other entities in which neither the Company nor HoldCo is the surviving entity, unless the holders of the Company or
HoldCo’s voting securities immediately prior to such transaction continue to hold at least 51% of such securities following such transaction, (iii) the consolidation or sale of all or substantially all of the assets of the Company and/or HoldCo in one or a series of related transactions, or (iv) the “completion” or closing by the Company or HoldCo of an agreement to which the Company or HoldCo is a party or by which it is bound, providing for any of the events set forth above in clauses (i), (ii) or (iii). 

4.  The Employee acknowledges that she has carefully read this Amendment and understands and agrees to this Amendment. 

5.  Capitalized terms used this Amendment shall have the meaning assigned to such terms in the Employment Agreement unless otherwise provided in this Amendment. 

6.  All definitions, terms, and conditions of the Employment Agreement remain in full force and effect for the duration of the Employment Period. 

[signatures on next page] 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year set forth above. 

		 	
	THE KEYW CORPORATION:	 	EMPLOYEE:
	By:
/s/ Leonard E. Moodispaw
Name: Leonard E. Moodispaw
Title: Chief Executive Officer
	 	/s/ Kimberly J. DeChello
Kimberly J. DeChello

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