Document:

ex10_1.htm

Exhibit 10.1

Execution Form

SETTLEMENT AGREEMENT

 

This SETTLEMENT AGREEMENT ("the Agreement"), is entered into as of the 23rd day of July, 2010 ("Effective Date"), by and between Hysitron Incorporated ("Hysitron"), a Minnesota corporation having its principal place of business at 10025 Valley View Road, Minneapolis, Minnesota 55344, and MTS Systems Corporation ("MTS"), a Minnesota corporation having its principal place of business at 14000 Technology Drive, Eden Prairie, Minnesota 55344 (collectively, "the Parties").

 

WHEREAS, Hysitron owns U.S. Patent No. 5,553,486 ("the '486 patent") and U.S. Patent No. 6,026,677 ("the '677 patent");

 

WHEREAS, Hysitron owns the trademark "HYSITRON," Federal Registration No. 3,644,289;

 

WHEREAS, on March 14, 2007, Hysitron filed a lawsuit, currently pending before the U.S. District Court for the District of Minnesota as Hysitron Incorporated v. MTS Systems Corporation, Case No. 0:07-cv-01533-ADM-AJB ("the Action"), against MTS, and MTS asserted counterclaims against Hysitron in the Action; and

 

WHEREAS, the Parties now wish to resolve all disputes and claims currently between them and to avoid further litigation;

 

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.             Compensation:  MTS shall pay Hysitron a lump sum of  Seven Million Five Hundred Thousand Dollars ($7,500,000)  ("Compensation Amount") within fourteen (14) days of the Effective Date to resolve all disputes and claims between them and to reimburse Hysitron for attorneys fees, litigation costs and other expenses.

 

2.             Release by Hysitron:  Hysitron, for itself and its successors and assigns, hereby releases, acquits, and forever discharges MTS, its directors, officers, members, managers, representatives, employees, agents, shareholders, dealers, distributors, and customers, and its successors and assigns from any and all claims, counterclaims, compulsory counterclaims, causes of action, demands, damages, costs, attorneys' fees, and other expenses of any kind arising out of or relating to the '486 patent, the '677 patent, or the "HYSITRON" trademark that were brought or could have been brought in the Action prior to the Effective Date.

 

3.             Release by MTS:  MTS, for itself and its successors and assigns, hereby releases, acquits, and forever discharges Hysitron, its directors, officers, members, managers, representatives, employees, agents, shareholders, dealers, distributors, and customers, and its successors and assigns from any and all claims, counterclaims, compulsory counterclaims, causes of action, demands, damages, costs, attorneys' fees, and other expenses of any kind arising out of or relating to the '486 patent, the '677 patent, or the "HYSITRON" trademark that were brought or could have been brought in the Action prior to the Effective Date.

 

4.             Covenant Not to Challenge the '486 Patent and the '677 Patent:

 

a.           Covenant Not to Challenge Validity, Enforceability, and Patentability:  MTS acknowledges the validity, enforceability, and patentability of the '486 patent and the '677 patent.  MTS, for itself and its successors and assigns, hereby forever covenants not to challenge the validity, enforceability, and patentability of the '486 patent and the '677 patent, not to assist any third party in challenging the validity, enforceability, and patentability of the '486 patent and the '677 patent, and not to cause a third party to challenge the validity, enforceability, and patentability of the '486 patent and the '677 patent.

 

b.           Covenant Not to Challenge Ownership:  MTS acknowledges that Hysitron is the sole and complete owner of the '486 patent and the '677 patent.  MTS, for itself and its successors and assigns, hereby forever covenants not to challenge Hysitron's ownership of the '486 patent and the '677 patent, not to assist any third party in challenging Hysitron's ownership of the '486 patent and the '677 patent, and not to cause any third party to challenge Hysitron's ownership of the '486 patent and the '677 patent.

 

5.             Covenant Not to Challenge the "HYSITRON" trademark:

 

a.           Covenant Not to Challenge Validity and Enforceability:  MTS acknowledges the validity and enforceability of the "HYSITRON" trademark.  MTS, for itself and its successors and assigns, hereby forever covenants not to challenge the validity and enforceability of the "HYSITRON" trademark, not to assist any third party in challenging the validity and enforceability of the "HYSITRON" trademark, and not to cause any third party to challenge the validity and enforceability of the "HYSITRON" trademark.

  

  

  

b.           Covenant Not to Challenge Ownership:  MTS acknowledges that Hysitron is the sole and complete owner of the "HYSITRON" trademark.  MTS, for itself and its successors and assigns, hereby forever covenants not to challenge Hysitron's ownership of the "HYSITRON" trademark, not to assist any third party in challenging Hysitron's ownership of the "HYSITRON" trademark, and not to cause any third party to challenge Hysitron's ownership of the "HYSITRON" trademark.

 

6.             Covenant Not to Infringe by MTS:

 

a.           Covenant Not to Infringe the '486 Patent and the '677 Patent:  MTS, for itself and its successors and assigns, hereby forever covenants not to infringe the '486 patent and the '677 patent, not to assist any third party in infringing the '486 patent and the '677 patent, and not to cause any third party to infringe the '486 patent and the '677 patent.

 

b.           Covenant Not to Infringe the "HYSITRON" Trademark:  MTS, for itself and its successors and assigns, hereby forever covenants not to infringe the "HYSITRON" trademark, not to assist any third party in infringing the "HYSITRON" trademark, and not to cause any third party to infringe the "HYSITRON" trademark.

 

7.             Covenant Not to Use the "HYSITRON" trademark:  MTS, for itself and its successors and assigns, hereby forever covenants not to use, mention, or otherwise include the "HYSITRON" trademark in any advertisements, in print, on the internet, or otherwise, in any metadata associated with any website under its control, or on any list of search terms, paid or otherwise, associated with any website under its control.

 

8.             Dismissal of Suit:  Within 7 days of Hysitron receiving payment pursuant to paragraph 1, the Parties shall execute and file a joint stipulation for dismissal with prejudice in the form of Exhibit A hereto with the U.S. District Court for the District of Minnesota, and agree to take such other steps as are necessary to ensure the prompt dismissal with prejudice of all claims and counterclaims of the Action, with each Party to bear its own attorneys' fees, costs, and other expenses.

 

9.             Confidentiality:

 

a.           Confidentiality:  Each Party shall be permitted to disclose the contents of this Agreement and the Agreement itself.  MTS will be permitted to disclose this Settlement Agreement to the SEC as required by SEC rules and regulations and any MTS press release will be consistent with the SEC filing(s) and the terms of this Agreement.  Any information contained in the MTS SEC filing(s) or the press release of either Party shall not include confidential information of either Hysitron or MTS.

 

b.           No Representations Inconsistent with this Agreement:  Neither Party shall make any representation, orally, in writing, or otherwise, to any third party that is inconsistent with the terms and provisions of this Agreement.

 

10.           Enforcement of Agreement:

 

a.           Governing Law:  This Agreement shall be construed and enforced under and in accordance with the laws of the United States and the State of Minnesota.

 

b.           Remedies:  If either Party materially breaches this Agreement, the aggrieved Party may seek money damages, injunctive relief, equitable relief, and the reasonable attorneys' fees incurred in enforcing the Agreement.

 

11.           Representations and Warranties:

 

a.           Warranty of Authority:  Each Party warrants and represents that its has the authority to enter into this Agreement and that it is legally permitted to undertake the obligations imposed by this Agreement.

 

b.           Consents:  Each Party warrants and represents that, to the extent any third party consents are required for the performance of any obligation under this Agreement, it has obtained or shall obtain such consents

 

12.           Miscellaneous Provisions:

 

a.           Amendment:  This Agreement may be changed, modified, or amended only by an instrument in writing duly executed by both Parties.

 

b.           Entire Agreement:  This Agreement constitutes the full and complete agreement between the Parties with respect to the subject matter hereof and supersedes any and all prior understandings, whether written or oral.  Neither Party entered into this Agreement in reliance on any representation made by the other Party, whether written or oral, not expressly provided herein.

 

c.           No Agency:  Nothing in this Agreement shall be construed to create any relationship between the Parties other than as expressly set forth herein.  The Parties shall not have any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party or to bind the other Party with regard to any other contract, agreement, or undertaking with a third party.

  

  

  

d.           No Waiver:  The failure of either Party to insist upon strict performance of any obligation under this Agreement of the other Party, irrespective of the length of time for which such failure continues, shall not be a waiver of its rights to demand strict compliance in the future.  No consent or waiver, express or implied, by either Party to or of any breach or default in the performance of any obligation hereunder by the other Party shall constitute a consent or waiver to or of any other breach or default in the performance of the same or any other obligation hereunder.

 

e.           Joint Drafting:  Counsel for both Parties participated in the negotiation and drafting of this Agreement.  The terms and provisions of this Agreement must not be construed either for or against either Party based solely on the authorship of any particular term or provision.

 

f.           Counterparts:  This Agreement may be executed by facsimile signature and in any number of counterparts, each of which shall be deemed an original and all of which will constitute one and the same instrument.

 

g.           No Duress:  The Parties are entering into this Agreement in good faith and after careful contemplation of the terms and provisions, with the advice of counsel.  Neither Party is entering into this Agreement because of duress, whether financial or otherwise, nor has any such duress been identified.  Neither Party has any intention of later attempting to contest this Agreement on the basis of any duress.

 

h.           Severability:  If any provision of this Agreement is found or held to be invalid or unenforceable, the meaning of said provision will be construed, to the extent feasible, so as to render the provision valid and enforceable, and if no feasible interpretation shall save such provision, it will be severed from the remainder of the Agreement, as appropriate.  The remainder of this Agreement shall remain in full force and effect unless the severed provision is essential and material to the rights or benefits received by either Party.

 

i.           Headings:  The headings used in this Agreement are for convenience only and shall not be used to interpret this Agreement.

 

j.           Successors:  This agreement shall be binding upon and inure to the benefit of each Party, and their respective heirs, successors, assigns, and legal representatives.

 

k.           Notices:  All notices required or that may be given pursuant to this Agreement shall be in writing and shall be sufficient in all respects if (1) delivered by hand or (2) sent by overnight courier as follows:

 

If to Hysitron:

 

Michael Okerlund

General Counsel

Hysitron Incorporated

10025 Valley View Road

Minneapolis, Minnesota 55344

If to MTS:

 

Sue Knight

Chief Financial Officer

MTS Systems Corporation

14000 Technology Drive

Eden Prairie, Minnesota 55344

 

l.           Non-Admission of Liability:  By entering into this Agreement, MTS does not admit any liability to Hysitron, and Hysitron acknowledges that MTS has not admitted any liability or wrongdoing.

  

  

  

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers.

 

	  	
Hysitron Incorporated

	  
	  	  	  
	  	  	  	  
	
Date: July 23, 2010

	
By:

	
/s/  THOMAS WYROBEK

	  
	  	  	  	  
	  	
Name:

	
Thomas Wyrobek

	  
	  	  	  	  
	  	
Title:

	
President and CEO

	  
	  	  	  	  
	  	  	  	  
	  	
MTS Systems Corporation

	  
	  	  	  	  
	  	  	  	  
	
Date: July 23, 2010

	
By:

	
/s/ SUE KNIGHT

	  
	  	  	  	  
	  	
Name:

	
Sue Knight

	  
	  	  	  	  
	  	
Title:

	
Chief Financial OfficerAmended
January 30, 2009

    

    THE
KEYW CORPORATION

    

    2008
STOCK INCENTIVE PLAN

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              	 
      	 
      	 
      	
                                                                                                      Page

                                                                                                    
	 
      	 
      	 
      	 
      
	
                                                                                                      1.

                                                                                                    	
                                                                                                      PURPOSE

                                                                                                    	
                                                                                                      1

                                                                                                    
	
                                                                                                      2.

                                                                                                    	
                                                                                                      DEFINITIONS

                                                                                                    	
                                                                                                      1

                                                                                                    
	
                                                                                                      3.

                                                                                                    	
                                                                                                      ADMINISTRATION
      OF THE PLAN

                                                                                                    	
                                                                                                      4

                                                                                                    
	 
      	
                                                                                                      3.1

                                                                                                    	
                                                                                                      Board

                                                                                                    	
                                                                                                      4

                                                                                                    
	 
      	
                                                                                                      3.2

                                                                                                    	
                                                                                                      Committee

                                                                                                    	
                                                                                                      4

                                                                                                    
	 
      	
                                                                                                      3.3

                                                                                                    	
                                                                                                      Terms
      of Awards

                                                                                                    	
                                                                                                      5

                                                                                                    
	 
      	
                                                                                                      3.4

                                                                                                    	
                                                                                                      Deferral
      Arrangement

                                                                                                    	
                                                                                                      6

                                                                                                    
	 
      	
                                                                                                      3.5

                                                                                                    	
                                                                                                      No
      Liability

                                                                                                    	
                                                                                                      6

                                                                                                    
	 
      	
                                                                                                      3.6

                                                                                                    	
                                                                                                      Share
      Issuance/Book Entry

                                                                                                    	
                                                                                                      6

                                                                                                    
	
                                                                                                      4.

                                                                                                    	
                                                                                                      STOCK
      SUBJECT TO THE PLAN

                                                                                                    	
                                                                                                      6

                                                                                                    
	 
      	
                                                                                                      4.1

                                                                                                    	
                                                                                                      Number
      of Shares Available for Awards

                                                                                                    	
                                                                                                      6

                                                                                                    
	 
      	
                                                                                                      4.2

                                                                                                    	
                                                                                                      Adjustments
      in Authorized Shares

                                                                                                    	
                                                                                                      6

                                                                                                    
	 
      	
                                                                                                      4.3

                                                                                                    	
                                                                                                      Share
      Usage

                                                                                                    	
                                                                                                      6

                                                                                                    
	
                                                                                                      5.

                                                                                                    	
                                                                                                      EFFECTIVE
      DATE, DURATION AND AMENDMENTS

                                                                                                    	
                                                                                                      7

                                                                                                    
	 
      	
                                                                                                      5.1

                                                                                                    	
                                                                                                      Effective
      Date

                                                                                                    	
                                                                                                      7

                                                                                                    
	 
      	
                                                                                                      5.2

                                                                                                    	
                                                                                                      Term

                                                                                                    	
                                                                                                      7

                                                                                                    
	 
      	
                                                                                                      5.3

                                                                                                    	
                                                                                                      Amendment
      and Termination of the Plan

                                                                                                    	
                                                                                                      7

                                                                                                    
	 
      	
                                                                                                      5.4

                                                                                                    	
                                                                                                      Amendments
      of Awards

                                                                                                    	
                                                                                                      7

                                                                                                    
	
                                                                                                      6.

                                                                                                    	
                                                                                                      AWARD
      ELIGIBILITY

                                                                                                    	
                                                                                                      8

                                                                                                    
	 
      	
                                                                                                      6.1

                                                                                                    	
                                                                                                      Employees
      and Other Service Providers

                                                                                                    	
                                                                                                      8

                                                                                                    
	 
      	
                                                                                                      6.2

                                                                                                    	
                                                                                                      Limitations
      on Incentive Stock Options

                                                                                                    	
                                                                                                      8

                                                                                                    
	
                                                                                                      7.

                                                                                                    	
                                                                                                      AWARD
      AGREEMENT

                                                                                                    	
                                                                                                      8

                                                                                                    
	
                                                                                                      8.

                                                                                                    	
                                                                                                      TERMS
      AND CONDITIONS OF OPTIONS

                                                                                                    	
                                                                                                      8

                                                                                                    
	 
      	
                                                                                                      8.1

                                                                                                    	
                                                                                                      Option
      Price

                                                                                                    	
                                                                                                      8

                                                                                                    
	 
      	
                                                                                                      8.2

                                                                                                    	
                                                                                                      Vesting

                                                                                                    	
                                                                                                      9

                                                                                                    
	 
      	
                                                                                                      8.3

                                                                                                    	
                                                                                                      Term

                                                                                                    	
                                                                                                      9

                                                                                                    
	 
      	
                                                                                                      8.4

                                                                                                    	
                                                                                                      Exercise
      of Options on Termination of Service

                                                                                                    	
                                                                                                      9

                                                                                                    
	 
      	
                                                                                                      8.5

                                                                                                    	
                                                                                                      Limitations
      on Exercise of Option

                                                                                                    	
                                                                                                      9

                                                                                                    
	 
      	
                                                                                                      8.6

                                                                                                    	
                                                                                                      Exercise
      Procedure

                                                                                                    	
                                                                                                      10

                                                                                                    
	 
      	
                                                                                                      8.7

                                                                                                    	
                                                                                                      Right
      of Holders of Options

                                                                                                    	
                                                                                                      10

                                                                                                    
	 
      	
                                                                                                      8.8

                                                                                                    	
                                                                                                      Delivery
      of Stock Certificates

                                                                                                    	
                                                                                                      10

                                                                                                    
	 
      	
                                                                                                      8.9

                                                                                                    	
                                                                                                      Transferability
      of Options

                                                                                                    	
                                                                                                      10

                                                                                                    
	 
      	
                                                                                                      8.10

                                                                                                    	
                                                                                                      Family
      Transfers

                                                                                                    	
                                                                                                      10

                                                                                                    
	 
      	
                                                                                                      8.11

                                                                                                    	
                                                                                                      Notice
      of Disqualifying Disposition

                                                                                                    	
                                                                                                      11

                                                                                                    
	
                                                                                                      9.

                                                                                                    	
                                                                                                      RESTRICTED
      STOCK

                                                                                                    	
                                                                                                      11

                                                                                                    
	 
      	
                                                                                                      9.1

                                                                                                    	
                                                                                                      Award
      of Restricted Stock

                                                                                                    	
                                                                                                      11

                                                                                                    
	 
      	
                                                                                                      9.2

                                                                                                    	
                                                                                                      Restrictions

                                                                                                    	
                                                                                                      11

                                                                                                    
	 
      	
                                                                                                      9.3

                                                                                                    	
                                                                                                      Restricted
      Stock Certificates

                                                                                                    	
                                                                                                      11

                                                                                                    
	 
      	
                                                                                                      9.4

                                                                                                    	
                                                                                                      Rights
      of Holders of Restricted Stock

                                                                                                    	
                                                                                                      12

                                                                                                    
	 
      	
                                                                                                      9.5

                                                                                                    	
                                                                                                      Termination
      of Service

                                                                                                    	
                                                                                                      12

                                                                                                    
	 
      	
                                                                                                      9.6

                                                                                                    	
                                                                                                      Purchase
      and Delivery of Stock

                                                                                                    	
                                                                                                      12

                                                                                                    

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        - i
-

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                	
                                                                                        10.

                                                                                      	
                                                                                        FORM
      OF PAYMENT

                                                                                      	
                                                                                        12

                                                                                      
	
                                                                                        11.

                                                                                      	
                                                                                        WITHHOLDING
      TAXES

                                                                                      	
                                                                                        13

                                                                                      
	
                                                                                        12.

                                                                                      	
                                                                                        RESTRICTIONS
      ON TRANSFER OF SHARES OF STOCK

                                                                                      	
                                                                                        13

                                                                                      
	 
      	
                                                                                        12.1

                                                                                      	
                                                                                        Right
      of First Refusal

                                                                                      	
                                                                                        13

                                                                                      
	 
      	
                                                                                        12.2

                                                                                      	
                                                                                        Repurchase
      and Other Rights

                                                                                      	
                                                                                        13

                                                                                      
	 
      	
                                                                                        12.3

                                                                                      	
                                                                                        Installment
      Payments

                                                                                      	
                                                                                        14

                                                                                      
	 
      	 	
                                                                                        12.3.1

                                                                                      	
                                                                                        General
      Rule

                                                                                      	
                                                                                        14

                                                                                      
	 
      	 	
                                                                                        12.3.2

                                                                                      	
                                                                                        Exception
      in the Case of Stock Repurchase Right

                                                                                      	
                                                                                        14

                                                                                      
	 
      	
                                                                                        12.4

                                                                                      	
                                                                                        Publicly
      Traded Stock

                                                                                      	
                                                                                        14

                                                                                      
	 
      	
                                                                                        12.5

                                                                                      	
                                                                                        Legend

                                                                                      	
                                                                                        14

                                                                                      
	
                                                                                        13.

                                                                                      	
                                                                                        PARACHUTE
      LIMITATIONS

                                                                                      	
                                                                                        14

                                                                                      
	14.	REQUIREMENTS
      OF LAW	
                                                                                        15

                                                                                      
	 
      	
                                                                                        14.1

                                                                                      	
                                                                                        General

                                                                                      	
                                                                                        15

                                                                                      
	 
      	
                                                                                        14.2

                                                                                      	
                                                                                        Rule
      16b-3

                                                                                      	
                                                                                        16

                                                                                      
	 
      	
                                                                                        14.3

                                                                                      	
                                                                                        Financial
      Reports

                                                                                      	
                                                                                        16

                                                                                      
	
                                                                                        15.

                                                                                      	
                                                                                        EFFECT
      OF CHANGES IN CAPITALIZATION

                                                                                      	
                                                                                        16

                                                                                      
	 
      	
                                                                                        15.1

                                                                                      	
                                                                                        Changes
      in Stock

                                                                                      	
                                                                                        16

                                                                                      
	 
      	
                                                                                        15.2

                                                                                      	
                                                                                        Reorganization
      in Which the Company Is the Surviving Entity and in Which No Change of
      Control Occurs

                                                                                      	
                                                                                        17

                                                                                      
	 
      	
                                                                                        15.3

                                                                                      	
                                                                                        Change
      of Control

                                                                                      	
                                                                                        17

                                                                                      
	 
      	
                                                                                        15.4

                                                                                      	
                                                                                        Adjustments

                                                                                      	
                                                                                        18

                                                                                      
	 
      	
                                                                                        15.5

                                                                                      	
                                                                                        No
      Limitations on Company

                                                                                      	
                                                                                        18

                                                                                      
	
                                                                                        16.

                                                                                      	
                                                                                        GENERAL
      PROVISIONS

                                                                                      	
                                                                                        18

                                                                                      
	 
      	
                                                                                        16.1

                                                                                      	
                                                                                        Disclaimer
      of Rights

                                                                                      	
                                                                                        18

                                                                                      
	 
      	
                                                                                        16.2

                                                                                      	
                                                                                        Nonexclusivity
      of the Plan

                                                                                      	
                                                                                        18

                                                                                      
	 
      	
                                                                                        16.3

                                                                                      	
                                                                                        Captions

                                                                                      	
                                                                                        19

                                                                                      
	 
      	
                                                                                        16.4

                                                                                      	
                                                                                        Other
      Award Agreement Provisions

                                                                                      	
                                                                                        19

                                                                                      
	 
      	
                                                                                        16.5

                                                                                      	
                                                                                        Number
      and Gender

                                                                                      	
                                                                                        19

                                                                                      
	 
      	
                                                                                        16.6

                                                                                      	
                                                                                        Severability

                                                                                      	
                                                                                        19

                                                                                      
	 
      	
                                                                                        16.7

                                                                                      	
                                                                                        Governing
      Law

                                                                                      	
                                                                                        19

                                                                                      
	 
      	
                                                                                        16.8

                                                                                      	
                                                                                        Code
      Section 409A

                                                                                      	
                                                                                        19

                                                                                      

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -ii-

        
          

        

      

      
         

      

    

    

    THE
KEYW CORPORATION

    

    2008
STOCK INCENTIVE PLAN

    

    The KEYW
Corporation, a Maryland corporation
(the “Company”), sets
forth herein the terms of its 2008 Stock Incentive Plan (the “Plan”) as
follows:

     

    
      
        	
                1.

              	
                PURPOSE

              

      

    

     

    The Plan
is intended to enhance the Company’s and its Affiliates’ (as defined herein)
ability to attract and retain highly qualified officers, directors, key
employees, and other persons, and to motivate such persons to serve the Company
and its Affiliates and to expend maximum effort to improve the business results
and earnings of the Company, by providing to such persons an opportunity to
acquire or increase a direct proprietary interest in the operations and future
success of the Company.  To this end, the Plan provides for the grant
of stock options and restricted stock in accordance with the terms
hereof.  Stock options granted under the Plan may be nonqualified
stock options or incentive stock options, as provided herein.

     

    
      
        	
                2.

              	
                DEFINITIONS

              

      

    

     

    For
purposes of interpreting the Plan and related documents (including Award
Agreements), the following definitions shall apply:

     

    2.1           “Affiliate” means, with respect
to a Person, any company or other trade or business that controls, is controlled
by or is under common control with such Person within the meaning of Rule 405 of
Regulation C under the Securities Act, including, without limitation, any
Subsidiary, provided that an entity may not be considered an Affiliate if it
results in noncompliance with Code Section 409A.

     

    2.2          
“Award” means
a grant of an Option or Restricted Stock under the Plan.

     

    2.2           “Award Agreement” means the
written agreement between the Company and a Grantee that evidences and sets out
the terms and conditions of an Award.

     

    2.3          
“Benefit Arrangement” shall have the
meaning set forth in Section 13 hereof.

     

    2.4           “Board” means the Board of
Directors of the Company.

     

    2.5           “Cause” means, as determined by
the Board and unless otherwise provided in an applicable agreement with the
Company or an Affiliate thereof, (i) gross negligence or willful misconduct in
connection with the performance of duties; (ii) conviction of a criminal
offense (other than minor traffic offenses); or (iii) material breach of
any term of any employment, consulting or other services, confidentiality,
intellectual property or non-competition agreements, if any, between the Service
Provider and the Company or an Affiliate thereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.6           “Change of Control” means (i)
the dissolution or liquidation of the Company or a merger, consolidation, or
reorganization of the Company with one or more other entities in which the
Company is not the surviving entity or (ii) a sale of substantially all of the
assets of the Company to another person or entity.

     

    2.7           “Code” means the Internal
Revenue Code of 1986, as now in effect or as hereafter amended.

     

    2.8           “Committee” means a committee
of, and designated from time to time by resolution of, the Board, pursuant to
Section 3.2
hereof, which shall consist of one (1) or more members of the
Board.

     

    2.9           “Company” has the meaning set
forth in the Preamble.

     

    2.10         “Disability” means the Grantee
is unable to perform each of the essential duties of such Grantee’s position by
reason of a medically determinable physical or mental impairment which is
potentially permanent in character or which can be expected to last for a
continuous period of not less than twelve (12) months; provided, however, that with
respect to rules regarding expiration of an Incentive Stock Option following
termination of the Grantee’s Service, Disability shall mean the Grantee is
unable to engage in any substantial gainful activity by reason of a medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than 12 months.

     

    2.11         “Effective Date” means July 31,
2008, the date the Plan is approved by the Board.

     

    2.12         “Exchange Act” means the
Securities Exchange Act of 1934, as now in effect or as hereafter
amended.

     

    2.13         “Fair Market Value” means the
value of a share of Stock, determined as follows:  if on the Grant
Date or other determination date the Stock is listed on an established national
or regional stock exchange, or is publicly traded on an established securities
market, the Fair Market Value of a share of Stock shall be the closing price of
the Stock on such exchange or in such market (if there is more than one such
exchange or market the Board shall determine the appropriate exchange or market)
on the Grant Date or such other determination date (or if there is no such
reported closing price, the Fair Market Value shall be the mean between the
highest bid and lowest asked prices or between the high and low sale prices on
such trading day) or, if no sale of Stock is reported for such trading day, on
the next preceding day on which any sale shall have been reported.  If
the Stock is not listed on such an exchange, quoted on such system or traded on
such a market, Fair Market Value shall be the value of the Stock as determined
by the Board in good faith in a manner consistent with Code Section
409A.

     

    2.14         “Family Member” means a person
who is a spouse, former spouse, child, stepchild, grandchild, parent,
stepparent, grandparent, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother, sister, brother-in-law, or sister-in-law,
including adoptive relationships, of the Grantee, any person sharing the
Grantee’s household (other than a tenant or employee), a trust in which any one
or more of these persons have more than fifty percent (50%) of the beneficial
interest, a foundation in which any one or more of these persons (or the
Grantee) controls the management of assets, and any other entity in which one or
more these persons (or the Grantee) own more than fifty percent (50%) of the
voting interests in such entity.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    2.15         “Grant Date” means, as
determined by the Board, the latest to occur of (i) the date as of which
the Board approves an Award, (ii) the date on which the recipient of an Award
first becomes eligible to receive an Award under Section 6
hereof, or (iii) such other date as may be specified by the Board.

     

    2.16         “Grant Share” shall have the
meaning set forth in Section 15.3
hereof.

     

    2.17         “Grantee” means a person who
receives or holds an Award under the Plan.

     

    2.18         “Incentive Stock Option” means
an “incentive stock option” within the meaning of Section 422 of the Code, or
the corresponding provision of any subsequently enacted tax statute, as amended
from time to time.

     

    2.19         “Nonqualified Stock Option”
means an Option that is not an Incentive Stock Option.

     

    2.20         “Option” means an option to
purchase one or more shares of Stock pursuant to the Plan.

     

    2.21         “Option Price” means the
purchase price for each share of Stock subject to an Option.

     

    2.22         “Other Agreement” shall have
the meaning set forth in Section 13 hereof.

     

    2.23         “Parachute Payment” shall have
the meaning set forth in Section 13 hereof.

     

    2.24         “Person” means a natural
person, partnership, corporation, limited liability company, business trust,
joint stock company, trust, unincorporated association, joint venture or other
entity or organization.

     

    2.25         “Plan” has the meaning set
forth in the Preamble.

     

    2.26         “Purchase Price” means the purchase
price for each share of Stock issued pursuant to an Award of Restricted
Stock.

     

    2.27         “Reporting Person” means a
person who is required to file reports under Section 16(a) of the Exchange
Act.

     

    2.28         “Restricted Stock” means shares
of Stock, awarded to a Grantee pursuant to Section 9 hereof,
that are subject to restrictions and to a risk of forfeiture.

     

    2.29         “Securities Act” means the
Securities Act of 1933, as now in effect or as hereafter
amended.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    2.30         “Service” means service as an
employee, officer, director or other Service Provider of the Company or an
Affiliate thereof.  Unless otherwise stated in the applicable Award
Agreement, a Grantee’s change in position or duties shall not result in
interrupted or terminated Service, so long as such Grantee continues to be an
employee, officer, director or other Service Provider of the Company or an
Affiliate thereof.  Subject to the preceding sentence, whether a
termination of Service shall have occurred for purposes of the Plan shall be
determined by the Board, which determination shall be final, binding and
conclusive.

     

    2.31         “Service Provider” means an employee,
officer or director of the Company or an Affiliate thereof, or a consultant or
adviser currently providing services to the Company or an Affiliate
thereof.

     

    2.32         “Stock” means the common stock,
$0.001 par value per share, of the Company.

     

    2.33         “Subsidiary” means any
“subsidiary corporation” of the Company within the meaning of Section 424(f) of
the Code.

     

    2.34         “Ten-Percent Stockholder” means
an individual who owns more than ten percent (10%) of the total combined voting
power of all classes of outstanding stock of the Company, its parent or any of
its Subsidiaries.  In determining stock ownership, the attribution
rules of Section 424(d) of the Code shall be applied.

     

    
      
        	
                3.

              	
                ADMINISTRATION
      OF THE PLAN

              

      

    

     

    3.1           Board.

     

    The Board
shall have such powers and authorities related to the administration of the Plan
as are consistent with the Company’s certificate of incorporation and bylaws and
applicable law.  The Board shall have full power and authority to take
all actions and to make all determinations required or provided for under the
Plan, any Award or any Award Agreement, and shall have full power and authority
to take all such other actions and make all such other determinations not
inconsistent with the specific terms and provisions of the Plan that the Board
deems to be necessary or appropriate to the administration of the Plan, any
Award or any Award Agreement.  All such actions and determinations
shall be by the affirmative vote of a majority of the members of the Board
present at a meeting or by consent of the Board executed in writing in
accordance with the Company’s certificate of incorporation and bylaws and
applicable law.  The interpretation and construction by the Board of
any provision of the Plan, any Award or any Award Agreement shall be final,
binding and conclusive.

     

    3.2           Committee.

     

    The Board
from time to time may delegate to one or more Committees such powers and
authorities related to the administration and implementation of the Plan, as set
forth in Section 3.1 above and in other
applicable provisions, as the Board shall determine, consistent with the
certificate of incorporation and bylaws of the Company and applicable
law.  In the event that the Plan, any Award or any Award Agreement
entered into hereunder provides for any action to be taken by or determination
to be made by the Board, such action may be taken by or such determination may
be made by the applicable Committee if the power and authority to do so has been
delegated to the Committee by the Board as provided for in Section 3.1 and all references
herein to the Board shall be deemed to be the Committee.  Unless
otherwise expressly determined by the Board, any such action or determination by
the Committee shall be final, binding and conclusive.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    3.3         
  Terms of Awards.

     

    Subject
to the other terms and conditions of the Plan, the Board shall have full and
final authority to:

     

    (i)          
   designate Grantees;

     

    (ii)           
 determine the type or types of Awards to be made to a
Grantee;

     

    (iii)   
        determine the number of shares
of Stock to be subject to an Award;

     

    
      	
               
      

            	
              (iv)

            	
              establish
      the terms and conditions of each Award (including, but not limited to, the
      Option Price of any Option, the nature and duration of any restriction or
      condition (or provision for lapse thereof) relating to the vesting,
      exercise, transfer, or forfeiture of an Award or the shares of Stock
      subject thereto, and any terms or conditions that may be necessary to
      qualify Options as Incentive Stock
Options);

            

    

     

    (v)  
           prescribe the form
of each Award Agreement evidencing an Award; and

     

    
      	
               
      

            	
              (vi)

            	
              amend,
      modify, or supplement the terms of any outstanding Award (provided, that,
      no amendment, modification or supplement of any Award shall, without the
      consent of the Grantee, impair the Grantee’s rights under such
      Award).

            

    

     

    The
Board’s authority hereunder specifically includes the authority, in order to
effectuate the purposes of the Plan but without amending the Plan, to modify
Awards to eligible individuals who are foreign nationals or are individuals who
are employed outside the United States to recognize differences in local law,
tax policy, or custom.  Notwithstanding the foregoing, no amendment,
modification or supplement of any Award shall, without the consent of the
Grantee, impair the Grantee’s rights under such Award.

     

    The
Company may retain the right in an Award Agreement to cause a forfeiture of the
gain realized by a Grantee on account of actions taken by the Grantee in
violation or breach of or in conflict with any employment agreement,
non-competition agreement, any agreement prohibiting solicitation of employees
or clients of the Company or any Affiliate thereof or any
confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in
competition with the Company or any Affiliate thereof, to the extent specified
in such Award Agreement applicable to the Grantee.  In addition, the
Company may annul an Award if the Grantee is an employee of the Company or an
Affiliate thereof and is terminated for Cause as defined in the applicable Award
Agreement or the Plan, as applicable.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    3.4           Deferral
Arrangement.

     

    The Board
may permit or require the deferral of any award payment into a deferred
compensation arrangement, subject to such rules and procedures as it may
establish, which may include provisions for the payment or crediting of interest
or dividend equivalents, including converting such credits into deferred Stock
equivalents.  Any such deferrals shall be made in a manner that
complies with Code Section 409A.

     

    3.5           No
Liability.

     

    No member
of the Board or of a Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Award or Award
Agreement.

     

    3.6           Share
Issuance/Book Entry.

     

    Notwithstanding any provision of this
Plan to the contrary, the issuance of the Stock under the Plan may be evidenced
in such a manner as the Board, in its discretion, deems appropriate, including,
without limitation, book-entry registration or issuance of one or more Stock
certificates.

     

    
      
        	
                4.

              	
                STOCK
      SUBJECT TO THE PLAN

              

      

    

     

    4.1           Number
of Shares Available for Awards.

     

    Subject
to adjustment as provided in Section 15 hereof, the number of
shares of Stock available for issuance under the Plan shall be one million
(1,000,000).  All shares of Stock issuable under the Plan may be
issued as Incentive Stock Options.  Stock issued or to be issued under
the Plan shall be authorized but unissued shares or, to the extent permitted by
applicable law, issued shares that have been reacquired by the
Company.

     

    4.2           Adjustments
in Authorized Shares.

     

    The Board shall have the right to
substitute or assume Awards in connection with mergers, reorganizations,
separations, or other transactions to which Section 424(a) of the Code applies.
The number of shares of Stock reserved pursuant to Section 4 shall be
increased by the corresponding number of Awards assumed and, in the case of a
substitution, by the net increase in the number of shares of Stock subject to
Awards before and after the substitution.

     

    4.3           Share
Usage.

     

    Shares covered by an Award shall be
counted as of the Grant Date for purposes of calculating the number of shares
available for issuance under Section
4.1.  If any shares covered by an Award are not purchased or
are forfeited or expire, or if an Award otherwise terminates without delivery of
any Stock subject thereto or is settled in cash in lieu of shares, then the
number of shares of Stock counted against the aggregate number of shares
available under the Plan with respect to such Award shall, to the extent of any
such forfeiture, termination, or expiration again be available for making Awards
under the Plan. If the exercise price of any Option granted under the Plan is
satisfied by tendering shares of Stock to the Company (by either actual delivery
or by attestation), only the number of shares of Stock issued net of the shares
of Stock tendered shall be deemed delivered for purposes of determining the
maximum number of shares of Stock available for delivery under the
Plan.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
      
        	
                5.

              	
                EFFECTIVE
      DATE, DURATION AND AMENDMENTS

              

      

    

     

    5.1           Effective
Date.

     

    The Plan shall be effective as of the
Effective Date, subject to approval of the Plan by the Company’s stockholders
entitled to vote thereon within one year of the Effective Date.  Upon
approval of the Plan by the stockholders of the Company entitled to vote thereon
as set forth above, all Awards made under the Plan on or after the Effective
Date shall be fully effective as if the stockholders of the Company entitled to
vote thereon had approved the Plan on the Effective Date.  If the
stockholders fail to approve the Plan within one year of the Effective Date, any
Awards made hereunder shall be null and void and of no effect, and no additional
Awards shall be made after such date.

     

    5.2           Term.

     

    The Plan shall terminate
automatically ten (10) years after its adoption by the Board and may be
terminated on any earlier date as provided in Sections 5.3 or
15.3.  No
Awards shall be made after termination of the Plan.

     

    5.3           Amendment
and Termination of the Plan

     

    The Board may, at any time and from
time to time, amend, suspend, or terminate, in whole or in part, any or all of
the provisions of this Plan (including any amendment deemed necessary to ensure
that the Company may comply with any regulatory requirement referred to herein),
or suspend or terminate it entirely, retroactively or otherwise; provided, however, that if the
Board, in its sole discretion, determines that the rights of a Grantee with
respect to an Award granted prior to such amendment, suspension or termination,
may be adversely impaired, the consent of such Grantee shall be required or the
terms of such Grantee’s Award shall continue to be governed by the Plan without
giving effect to any such amendment.  An amendment to the Plan shall
be contingent on approval of the Company’s stockholders entitled to vote thereon
only to the extent required by applicable law, regulations or
rules.  For the avoidance of doubt, nothing in this Section 5.3 shall be
deemed to limit the discretion of the Board under Section
15.3.

     

    5.4           Amendments
of Awards.

     

    The Board may, at any time and from
time to time, amend the terms of any Award, prospectively or retroactively;
provided, however, that if the
Board, in its sole discretion, determines that the rights of a Grantee with
respect to an Award may be adversely impaired by any such amendment, the consent
of such Grantee shall be required.

    
      
         

      

      
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                6.

              	
                AWARD
      ELIGIBILITY

              

      

    

     

    6.1           Employees
and Other Service Providers.

     

    Awards
(including Awards of Incentive Stock Options, subject to Section 6.2) may
be made under the Plan to any employee, officer or director of, or other
Service Provider providing services to, the Company or any Affiliate
thereof.  To the extent required by applicable state law, Awards
within certain states may be limited to employees and officers or employees,
officers and directors.  An eligible person may receive more than one
Award, subject to such restrictions as are provided herein.

     

    6.2           Limitations
on Incentive Stock Options.

     

    An Option
shall constitute an Incentive Stock Option only (i) if the Grantee of such
Option is an employee of the Company or any Subsidiary of the Company, (ii) to
the extent specifically provided in the related Award Agreement and (iii) to the
extent that the aggregate Fair Market Value (determined at the time the Option
is granted) of the shares of Stock with respect to which all Incentive Stock
Options held by such Grantee become exercisable for the first time during any
calendar year (under the Plan and all other plans of the Grantee’s employer and
its Affiliates) does not exceed $100,000.  This limitation shall be
applied by taking options into account in the order in which they were
granted.

     

    
      
        	
                7.

              	
                AWARD
      AGREEMENT

              

      

    

     

    Each
Award pursuant to the Plan shall be evidenced by an Award Agreement, in such
form or forms as the Board shall from time to time determine, which specifies
the number of shares subject to the Award (subject to adjustment in accordance
with Section 15).  Award
Agreements granted from time to time or at the same time need not contain
similar provisions but shall be consistent with the terms of the
Plan.  Each Award Agreement evidencing an Award of Options shall
specify whether such Options are intended to be Nonqualified Stock Options or
Incentive Stock Options, and in the absence of such specification such options
shall be deemed Nonqualified Stock Options.

     

    
      
        	
                8.

              	
                TERMS
      AND CONDITIONS OF OPTIONS

              

      

    

     

    8.1           Option
Price.

     

    The Option Price of each Option shall
be fixed by the Board and stated in the Award Agreement evidencing such
Option.  The Option Price shall not be less than the Fair Market Value
on the Grant Date of a share of Stock; provided, however, that in the
event that a Grantee is a Ten-Percent Stockholder, the Option Price of an
Incentive Stock Option granted to such Grantee shall be not less than one
hundred ten percent (110%) of the Fair Market Value of a share of Stock on the
Grant Date.  To the extent required by applicable law, in the case of
a Nonqualified Stock Option, the Option Price shall be not less than one hundred
ten percent (110%) of the Fair Market Value of a share of Stock on the Grant
Date.  In no case shall the Option Price of any Option be less than
the par value of a share of Stock.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    8.2           Vesting.

     

    Subject
to Sections 8.3 and 15.3 hereof, each Option
granted under the Plan shall become exercisable at such times and under such
conditions as shall be determined by the Board and stated in the Award
Agreement.  For purposes of this Section 8.2,
fractional numbers of shares of Stock subject to an Option shall be rounded down
to the next nearest whole number.  To the extent required by
applicable law, each Option shall become exercisable no less rapidly than the
rate of twenty percent (20%) per year for each of the first five (5) years from
the Grant Date based on continued Service.  Subject to the preceding
sentence, the Board may provide, for example, in the Award Agreement for
(i) accelerated exercisability of the Option in the event the Grantee’s
Service terminates on account of death, Disability or another event,
(ii) expiration of the Option prior to its term in the event of the
termination of the Grantee’s Service, (iii) immediate forfeiture of the
Option in the event the Grantee’s Service is terminated for Cause or
(iv) unvested Options to be exercised subject to the Company’s right of
repurchase with respect to unvested shares of Stock.

     

    8.3           Term.

     

    Each
Option granted under the Plan shall terminate, and all rights to purchase shares
of Stock thereunder shall cease, upon the expiration of ten (10) years from the
Grant Date, or under such circumstances and on such date prior thereto as is set
forth in the Plan or as may be fixed by the Board and stated in the Award
Agreement relating to such Option; provided, however, that in the
event that the Grantee is a Ten-Percent Stockholder, an Option granted to such
Grantee that is intended to be an Incentive Stock Option shall not be
exercisable after the expiration of five (5) years from its Grant
Date.

     

    8.4           Exercise
of Options on Termination of Service.

     

    Each
Award Agreement shall set forth the extent to which the Grantee shall have the
right to exercise the Option following termination of the Grantee’s
Service.  Such provisions shall be determined in the sole discretion
of the Board, need not be uniform among all Options issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination of
Service.  Notwithstanding the foregoing, to the extent required by
applicable law, each Option shall provide that the Grantee shall have the right
to exercise the Option for at least six (6) months if the Grantee’s Service
terminates due to Death or Disability.

     

    8.5           Limitations
on Exercise of Option.

     

    Notwithstanding
any other provision of the Plan, in no event may any Option be exercised, in
whole or in part, prior to the date the Plan is approved by the stockholders of
the Company entitled to vote thereon, or after ten (10) years following the
Grant Date, or after the occurrence of an event referred to in Section 15
hereof which results in termination of the Option.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    8.6           Exercise
Procedure.

     

    An Option
that is exercisable may be exercised by the Grantee’s delivery to the Company of
written notice of exercise on any business day, at the Company’s principal
office, in the form
specified by the Company.  Such notice shall specify the number of
shares of Stock with respect to which the Option is being exercised and shall be
accompanied by payment in full of the Option Price of the shares for which the
Option is being exercised.  The minimum number of shares of Stock with
respect to which an Option may be exercised, in whole or in part, at any time
shall be the lesser of (i) one hundred (100) shares or such lesser number set
forth in the applicable Award Agreement and (ii) the maximum number of shares
available for purchase under the Option at the time of exercise.  The
Option Price shall be payable in a form described in Section 10.

     

    8.7           Right
of Holders of Options.

     

    Unless
otherwise stated in the applicable Award Agreement, an individual holding or
exercising an Option shall have none of the rights of a stockholder of the
Company (for example, the right to cash or dividend payments or distributions
attributable to the subject shares of Stock) until the shares of Stock covered
thereby are fully paid and issued to such individual.

     

    8.8           Delivery
of Stock Certificates.

     

    Promptly
after the exercise of an Option by a Grantee and the payment in full of the
Option Price, such Grantee shall be entitled to the issuance of a stock
certificate or certificates evidencing such Grantee’s ownership of the shares of
Stock purchased upon such exercise of the Option.  Notwithstanding any
other provision of this Plan to the contrary, the Company may elect to satisfy
any requirement under this Plan for the delivery of stock certificates through
the use of book-entry.

     

    8.9           Transferability
of Options.

     

    Except as
provided in Section 8.10,
during the lifetime of a Grantee, only the Grantee (or, in the event of legal
incapacity or incompetency, the Grantee’s guardian or legal representative) may
exercise an Option.  Except as provided in Section 8.10, no
Option shall be assignable or transferable by the Grantee to whom it is granted,
other than by will or the laws of descent and distribution.

     

    8.10         Family
Transfers.

     

    If
authorized in the applicable Award Agreement, a Grantee may transfer, not for
value, all or part of an Option that is not an Incentive Stock Option to any
Family Member.  For the purpose of this Section 8.10, a
“not for value” transfer is a transfer which is (i) a gift, (ii) a transfer
under a domestic relations order in settlement of marital property rights, or
(iii) unless applicable law does not permit such transfers, a transfer to an
entity in which more than fifty percent (50%) of the voting interests are owned
by Family Members (or the Grantee) in exchange for an interest in that
entity.  Following a transfer under this Section 8.10,
any such Option shall continue to be subject to the same terms and conditions as
were applicable immediately prior to transfer, and shares of Stock acquired
pursuant to the Option shall be subject to the same restrictions on transfer of
shares as would have applied to the Grantee.  Subsequent transfers of
transferred Options are prohibited except to Family Members of the original
Grantee in accordance with this Section 8.10 or by will or the laws
of descent and distribution.  The events of termination of Service
under an Option shall continue to be applied with respect to the original
Grantee, following which the Option shall be exercisable by the transferee only
to the extent, and for the periods specified in the applicable Award Agreement,
and the shares may be subject to repurchase by the Company or its
assignee.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    8.11         Notice
of Disqualifying Disposition.

     

    If any Grantee shall make any
disposition of shares of Stock issued pursuant to the exercise of an Incentive
Stock Option under the circumstances described in Code Section 421(b) (relating
to certain disqualifying dispositions), such Grantee shall notify the Company of
such disposition within ten (10) days thereof.

     

    
      
        	
                9.

              	
                RESTRICTED
      STOCK

              

      

    

     

    9.1           Award
of Restricted Stock.

     

    The Board
may from time to time grant Restricted Stock to persons eligible to receive
Awards under Section 6
hereof, subject to such restrictions, conditions and other terms as the Board
may determine.

     

    9.2           Restrictions.

     

    At the
time an Award of Restricted Stock is made, the Board shall establish a
restriction period applicable to such Restricted Stock.  Each Award of
Restricted Stock may be subject to a different restriction
period.  The Board may, in its sole discretion, at the time an Award
of Restricted Stock is made, prescribe conditions that must be satisfied prior
to the expiration of the restriction period, including the satisfaction of
corporate or individual performance objectives or continued Service, in order
that all or any portion of the Restricted Stock shall vest.  To the
extent required by applicable law, the vesting restrictions applicable to an
Award of Restricted Stock shall lapse no less rapidly than the rate of twenty
percent (20%) per year for each of the first five (5) years from the Grant Date,
based on continued Service.

     

    The Board
also may, in its sole discretion, shorten or terminate the restriction period or
waive any of the conditions applicable to all or a portion of the Restricted
Stock.  The Restricted Stock may not be sold, transferred, assigned,
pledged or otherwise encumbered or disposed of during the restriction period or
prior to the satisfaction of any other conditions prescribed by the Board with
respect to such Restricted Stock.

     

    9.3           Restricted
Stock Certificates.

     

    The
Company shall issue, in the name of each Grantee to whom Restricted Stock has
been granted, stock certificates representing the total number of shares of
Restricted Stock granted to such Grantee, as soon as reasonably practicable
after the applicable Grant Date.  The Board may provide in an Award
Agreement that either (i) the Secretary of the Company shall hold such
certificates for the Grantee’s benefit until such time as the Restricted Stock
is forfeited to the Company, or the restrictions lapse, or (ii) such
certificates shall be delivered to the Grantee; provided, however, that such
certificates shall bear a legend or legends that complies with the applicable
securities laws and regulations and makes appropriate reference to the
restrictions imposed under the Plan and the Award Agreement.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    9.4           Rights
of Holders of Restricted Stock.

     

    Holders
of Restricted Stock shall have the right to vote such Stock and, unless the
Board otherwise provides in an Award Agreement, to receive any dividends
declared or paid with respect to such Stock.  The Board may provide
that any dividends paid on Restricted Stock must be reinvested in shares of
Stock, which may or may not be subject to the same or other vesting conditions
and restrictions applicable to such Restricted Stock.  All
distributions, if any, received by a Grantee with respect to Restricted Stock as
a result of any stock split, stock dividend, combination of shares, or other
similar transaction shall be subject to the restrictions applicable to the
original Award.

     

    9.5           Termination
of Service.

     

    Unless
otherwise provided by the Board in the applicable Award Agreement, upon the
termination of a Grantee’s Service with the Company or an Affiliate thereof, any
shares of Restricted Stock held by such Grantee that have not vested, or with
respect to which all applicable restrictions and conditions have not lapsed,
shall immediately be deemed forfeited.  Upon forfeiture of Restricted
Stock, the Grantee shall have no further rights with respect to such Award,
including, but not limited to, the right to vote Restricted Stock and any right
to receive dividends with respect to shares of Restricted Stock.

     

    9.6           Purchase
and Delivery of Stock.

     

    The
Grantee shall be required to purchase the Restricted Stock from the Company at a
Purchase Price equal to the greater of (i) the aggregate par value of the shares
of Stock represented by such Restricted Stock or (ii) the Purchase Price, if
any, specified in the Award Agreement relating to such Restricted
Stock.  The Purchase Price shall be payable in a form described in
Section 10 or, in the discretion of
the Board, in consideration for past Services rendered to the Company or an
Affiliate thereof.  To the extent required by applicable law, the
Purchase Price of a share of Restricted Stock shall be not less than eighty-five
percent (85%) of the Fair Market Value on the Grant Date of a share of Stock;
provided, however, that in the
event that the Grantee is a Ten-Percent Stockholder, the Purchase Price shall be
not less than one hundred percent (100%) of the Fair Market Value on the Grant
Date of a share of Stock.

     

    Upon the
expiration or termination of the restriction period and the satisfaction of any
other conditions prescribed by the Board, having properly paid the Purchase
Price, the restrictions applicable to shares of Restricted Stock shall lapse,
and, unless otherwise provided in the Award Agreement, a stock certificate for
such shares shall be delivered, free of all such restrictions, to the Grantee or
the Grantee’s beneficiary or estate, as the case may be, upon the surrender of
any stock certificate(s) previously issued to such Grantee in respect of such
shares.

     

    
      	
              10.

            	
              FORM
      OF PAYMENT

            

    

     

    Payment
of the Option Price for the shares purchased pursuant to the exercise of an
Option or the Purchase Price for Restricted Stock shall be made in cash or in
cash equivalents acceptable to the Company.  In addition, to the
extent the Award Agreement so provides, payment of the Option Price for shares
purchased pursuant to exercise of an Option may be made in any other form that
is consistent with applicable laws, regulations and rules.

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    
      	
              11.

            	
              WITHHOLDING
      TAXES

            

    

     

    The
Company or an Affiliate thereof, as the case may be, shall have the right to
deduct from payments of any kind otherwise due to a Grantee any federal, state,
or local taxes of any kind required by law to be withheld with respect to the
vesting of or other lapse of restrictions applicable to an Award or upon the
issuance of any shares of Stock or payment of any kind upon the exercise of an
Option.  At the time of such vesting, lapse, or exercise, the Grantee
shall pay to the Company or the Affiliate thereof, as the case may be, any
amount that the Company or the Affiliate thereof may reasonably determine to be
necessary to satisfy such withholding obligation.  Subject to the
prior approval of the Company or the Affiliate thereof, which may be withheld by
the Company or the Affiliate thereof, as the case may be, in its sole
discretion, the Grantee may elect to satisfy such obligations, in whole or in
part, (i) by causing the Company or the Affiliate thereof to withhold
shares of Stock otherwise issuable to the Grantee or (ii) by delivering to
the Company or the Affiliate shares of Stock already owned by the
Grantee.  The shares of Stock so delivered or withheld shall have an
aggregate Fair Market Value equal to such withholding
obligations.  The Fair Market Value of the shares of Stock used to
satisfy such withholding obligation shall be determined by the Board as of the
date that the amount of tax to be withheld is to be determined.  A
Grantee who has made an election pursuant to this Section 11 may
satisfy his or her withholding obligation only with shares of Stock that are not
subject to any repurchase, forfeiture, unfulfilled vesting, or other similar
requirements.  The maximum number of shares of Stock that may be
withheld from any Award to satisfy any federal, state or local tax withholding
requirements upon the exercise, vesting, lapse of restrictions applicable to
such Award or payment of shares pursuant to such Award, as applicable, cannot
exceed such number of shares having a Fair Market Value equal to the minimum
statutory amount required by the Company to be withheld and paid to any such
federal, state or local taxing authority with respect to such exercise, vesting,
lapse of restrictions or payment of shares.

     

    
      	
              12.

            	
              RESTRICTIONS
      ON TRANSFER OF SHARES OF STOCK

            

    

     

    12.1         Right
of First Refusal.

     

    Any
shares of Stock acquired by, or delivered or issued to, the Grantee under the
Plan shall be subject to any right of first refusal of the Company that is
included in the Stockholders Agreement (the “Stockholders Agreement”) that
the Company intends to enter into with certain of its stockholders on or around
August 15, 2008.

     

    12.2         Repurchase
and Other Rights.

     

    Stock
issued upon exercise of an Option or pursuant to an Award of Restricted Stock
may be subject to such right of repurchase upon termination of Service or other
transfer restrictions as the Board may determine, consistent with applicable
law.  Any additional restrictions shall be set forth in the Award
Agreement; provided, however, that no such
restrictions shall be inconsistent with the terms of the Plan and the
Stockholders Agreement.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    12.3         Installment
Payments.

     12.3.1         General
Rule.

     

    In the
case of any purchase of Stock under this Section 12, the
Company or its permitted assignee may pay the Grantee, transferee of the Option
or other registered owner of the Stock the purchase price in three (3) or fewer
annual installments.  Interest shall be credited on the installments
at the applicable federal rate (as determined for purposes of Section 1274 of
the Code) in effect on the date on which the purchase is made.  The
Company or its permitted assignee shall pay at least one-third of the total
purchase price each year, plus interest on the unpaid balance, with the first
payment being made on or before the 60th day after the purchase.

     

     12.3.2         Exception
in the Case of Stock Repurchase Right.

     

    If an
Award Agreement authorizes, upon the Grantee’s termination of Service, the
repurchase of shares of Stock acquired by the Grantee pursuant to the exercise
of an Option or under an Award of Restricted Stock, to the extent required by
applicable law, payment shall be made in cash or by cancellation of indebtedness
within the later of ninety (90) days from the date of termination of Service or
ninety (90) days from the date of exercise or purchase, as the case may
be.

     

    12.4         Publicly
Traded Stock.

     

    If the
Stock is listed on an established national or regional stock exchange or is
admitted to quotation on The NASDAQ Stock Market, Inc., or is publicly traded in
an established securities market, the foregoing transfer restrictions of Section 12.2 shall
terminate as of the first date that the Stock is so listed, quoted or publicly
traded.

     

    12.5         Legend.

     

    In order
to enforce the restrictions imposed upon shares of Stock under this Plan or as
provided in an Award Agreement, the Board may cause a legend or legends to be
placed on any certificate representing shares issued pursuant to this Plan that
complies with the applicable securities laws and regulations and makes
appropriate reference to the restrictions imposed under it.

     

    
      	
              13.

            	
              PARACHUTE
      LIMITATIONS

            

    

     

    Notwithstanding
any other provision of this Plan or of any other agreement, contract or
understanding heretofore or hereafter entered into by a Grantee with the Company
or any Affiliate thereof, except an agreement, contract or understanding that
expressly addresses Section 280G or Section 4999 of the Code (an “Other Agreement”), and
notwithstanding any formal or informal plan or other arrangement for the direct
or indirect provision of compensation to the Grantee (including groups or
classes of participants or beneficiaries of which the Grantee is a member),
whether or not such compensation is deferred, is in cash, or is in the form of a
benefit to or for the Grantee (a “Benefit Arrangement”), if the
Grantee is a “disqualified individual,” as defined in Section 280G(c) of the
Code, any Awards held by that Grantee and any right to receive any payment or
other benefit under this Plan shall not become exercisable or vested (i) to the
extent that such right to exercise, vesting, payment, or benefit, taking into
account all other rights, payments, or benefits to or for the Grantee under this
Plan, all Other Agreements, and all Benefit Arrangements, would cause any
payment or benefit to the Grantee under this Plan to be considered a “parachute
payment” within the meaning of Section 280G(b)(2) of the Code as then in effect
(a “Parachute Payment”)
and (ii) if, as a result of receiving a Parachute Payment, the aggregate
after-tax amounts received by the Grantee from the Company under this Plan, all
Other Agreements, and all Benefit Arrangements would be less than the maximum
after-tax amount that could be received by the Grantee without causing any such
payment or benefit to be considered a Parachute Payment.  In the event
that the receipt of any such right to exercise, vesting, payment, or benefit
under this Plan, in conjunction with all other rights, payments, or benefits to
or for the Grantee under any Other Agreement or any Benefit Arrangement would
cause the Grantee to be considered to have received a Parachute Payment under
this Plan that would have the effect of decreasing the after-tax amount received
by the Grantee as described in clause (ii) of the preceding sentence, then the
Grantee shall have the right, in the Grantee’s sole discretion, to designate
those rights, payments, or benefits under this Plan, any Other Agreements, and
any Benefit Arrangements that should be reduced or eliminated so as to avoid
having the payment or benefit to the Grantee under this Plan be deemed to be a
Parachute Payment.

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

     

    
      	
              14.

            	
              REQUIREMENTS
      OF LAW

            

    

     

    14.1         General.

     

    The
Company shall not be required to sell or issue any shares of Stock under any
Award if the sale or issuance of such shares would constitute a violation by the
Grantee, any other individual exercising a right emanating from such Award, or
the Company of any provision of any law or regulation of any governmental
authority, including without limitation any federal or state securities laws or
regulations.  If at any time the Company shall determine, in its
discretion, that the listing, registration or qualification of any shares
subject to an Award upon any securities exchange or under any governmental
regulatory body is necessary or desirable as a condition of, or in connection
with, the issuance or purchase of shares hereunder, no shares of Stock may be
issued or sold to the Grantee or any other individual exercising an Option
pursuant to such Award unless such listing, registration, qualification, consent
or approval shall have been effected or obtained free of any conditions not
acceptable to the Company, and any delay caused thereby shall in no way affect
the date of termination of the Award.  Without limiting the generality
of the foregoing, in connection with the Securities Act, upon the exercise of
any right emanating from such Award or the delivery of any shares of Restricted
Stock, unless a registration statement under the Securities Act is in effect
with respect to the shares of Stock covered by such Award, the Company shall not
be required to sell or issue such shares unless the Board has received evidence
satisfactory to it that the Grantee or any other individual exercising an Option
may acquire such shares pursuant to an exemption from registration under the
Securities Act.  Any determination in this connection by the Board
shall be final, binding, and conclusive.  The Company may, but shall
in no event be obligated to, register any securities covered hereby pursuant to
the Securities Act.  The Company shall not be obligated to take any
affirmative action in order to cause the exercise of an Option or the issuance
of shares of Stock pursuant to the Plan to comply with any law or regulation of
any governmental authority.  As to any jurisdiction that expressly
imposes the requirement that an Option shall not be exercisable until the shares
of Stock covered by such Option are registered or are exempt from registration,
the exercise of such Option (under circumstances in which the laws of such
jurisdiction apply) shall be deemed conditioned upon the effectiveness of such
registration or the availability of such an exemption.

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    14.2         Rule
16b-3.

     

    During
any time when the Company has a class of equity security registered under
Section 12 of the Exchange Act, it is the intent of the Company that Awards
pursuant to the Plan and the exercise of Options granted hereunder will qualify
for the exemption provided by Rule 16b-3 under the Exchange Act.  To
the extent that any provision of the Plan or action by the Board does not comply
with the requirements of Rule 16b-3, it shall be deemed inoperative to the
extent permitted by law and deemed advisable by the Board, and shall not affect
the validity of the Plan.  In the event that Rule 16b-3 is revised or
replaced, the Board may exercise its discretion to modify this Plan in any
respect necessary to satisfy the requirements of, or to take advantage of any
features of, the revised exemption or its replacement.

     

    14.3         Financial
Reports.

     

    To the
extent required by applicable law, not less often than annually, the Company
shall furnish to Grantees summary financial information including a balance
sheet regarding the Company’s financial condition and results of operations,
unless such Grantees have duties with the Company that assure them access to
equivalent information.  Such financial statements need not be
audited.

     

    
      	
              15.

            	
              EFFECT
      OF CHANGES IN CAPITALIZATION

            

    

     

    15.1         Changes
in Stock.

     

    If the number of outstanding shares of
Stock is increased or decreased or the shares of Stock are changed into or
exchanged for a different number or kind of shares or other securities of the
Company on account of any recapitalization, reclassification, stock split,
reverse split, combination of shares, exchange of shares, stock dividend or
other distribution payable in capital stock, or other increase or decrease in
such shares effected without receipt of consideration by the Company occurring
after the Effective Date, the number and kinds of shares for which grants of
Options may be made under the Plan shall be adjusted proportionately and
accordingly by the Board.  In addition, the number and kind of shares
for which Awards are outstanding shall be adjusted proportionately and
accordingly so that the proportionate interest of the Grantee immediately
following such event shall, to the extent practicable, be the same as
immediately before such event.  Any such adjustment in outstanding
Options shall not change the aggregate Option Price payable with respect to
shares that are subject to the unexercised portion of an outstanding Option, but
shall include a corresponding proportionate adjustment in the Option
Price  per share.  The conversion of any convertible
securities of the Company shall not be treated as an increase in shares effected
without receipt of consideration.   Notwithstanding the
foregoing, in the event of any distribution to the Company’s stockholders of
securities of any other entity or other assets (including an extraordinary
dividend but excluding a non-extraordinary dividend of the Company) without
receipt of consideration by the Company, the Company shall, in such manner as
the Company deems appropriate, adjust (i) the number and kind of shares subject
to outstanding Awards and/or (ii) the exercise price of outstanding Options to
reflect such distribution.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    15.2         Reorganization
in Which the Company Is the Surviving Entity and in Which No Change of Control
Occurs.

     

    Subject
to the exception set forth in the last sentence of Section 15.4, if the
Company shall be the surviving entity in any reorganization, merger, or
consolidation of the Company with one or more other entities and in which no
Change of Control occurs, any Award theretofore made pursuant to the Plan shall
pertain to and apply solely to the non-voting common stock shares to which a
holder of the number of shares of Stock subject to such Award would have been
entitled immediately following such reorganization, merger, or consolidation,
and with a corresponding proportionate adjustment of the Option Price per share
so that the aggregate Option Price thereafter shall be the same as the aggregate
Option Price of the shares remaining subject to the Option immediately prior to
such reorganization, merger, or consolidation.

     

    15.3         Change
of Control.

     

    Subject
to the exceptions set forth in the last sentence of this Section 15.3 and the
last sentence of Section 15.4, upon the occurrence of a Change of Control either
of the following two actions shall be taken:

     

    (i) fifteen days prior to the scheduled
consummation of a Change of Control, all shares of Restricted Stock shall become
immediately vested and all Options outstanding hereunder shall become
immediately exercisable and shall remain exercisable for a period of fifteen
days, or

     

    (B) the Board may elect, in its sole
discretion, to cancel any outstanding Awards and pay or deliver, or cause to be
paid or delivered, to the holder thereof an amount in cash or securities having
a value (as determined by the Board acting in good faith) equal to the product
of the number of shares of Stock subject to the Award (the “Grant Shares”)
multiplied by the amount, if any, by which (I) the formula or fixed price per
share paid to holders of shares of Stock pursuant to such transaction exceeds
(II) the Option Price applicable to such Grant Shares.

     

    With
respect to the Company’s establishment of an exercise window, (i) any exercise
of an Option during such period shall be conditioned upon the consummation of
the event and shall be effective only immediately before the consummation of the
event, and (ii) upon consummation of any Change of Control, the Plan and all
outstanding but unexercised Options shall terminate.  The Board shall
send written notice of an event that will result in such a termination to all
individuals who hold Options not later than the time at which the Company gives
notice thereof to its stockholders.

     

    This
Section
15.3 shall
not apply to any Change of Control to the extent that provision is made in
writing in connection with such Change of Control for the assumption or
continuation of the Options or shares of Restricted Stock theretofore granted,
or for the substitution for such Awards for new common stock options or new
shares of restricted stock relating to the stock of a successor entity, or a
parent or subsidiary thereof, with appropriate adjustments as to the number of
shares (disregarding any consideration that is not common stock) and option
prices, in which event the Awards theretofore granted shall continue in the
manner and under the terms so provided.  In the event a Grantee’s
Award is assumed, continued or substituted upon the consummation of any Change
of Control and his employment is terminated without Cause within one year
following the consummation of such Change of Control, the Grantee’s Award will
be fully vested and may be exercised in full, to the extent applicable, for the
period set forth in the Grantee’s Award Agreement or for such longer period as
the Committee may determine.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    15.4         Adjustments.

     

    Adjustments
under Section 15
related to shares of Stock or securities of the Company shall be made by the
Board, whose determination in that respect shall be final, binding and
conclusive.  No fractional shares or other securities shall be issued
pursuant to any such adjustment, and any fractions resulting from any such
adjustment shall be eliminated in each case by rounding downward to the nearest
whole share.  The Board may provide in Award Agreements at the time of
grant, or any time thereafter with the consent of the Grantee, for different
provisions to apply to an Award in place of those described in Sections 15.1-15.3.

     

    15.5         No
Limitations on Company.

     

    The
making of Awards pursuant to the Plan shall not affect or limit in any way the
right or power of the Company to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure or to merge,
consolidate, dissolve, or liquidate, or to sell or transfer all or any part of
its business or assets.

     

    
      	
              16.

            	
              GENERAL
      PROVISIONS

            

    

     

    16.1         Disclaimer
of Rights.

     

    No
provision in the Plan or in any Award or Award Agreement shall be construed to
confer upon any individual the right to remain in the employ or service of the
Company or any Affiliate thereof, or to interfere in any way with any
contractual or other right or authority of the Company either to increase or
decrease the compensation or other payments to any individual at any time, or to
terminate any employment or other relationship between any individual and the
Company or any Affiliate thereof.  The obligation of the Company to
pay any benefits pursuant to this Plan shall be interpreted as a contractual
obligation to pay only those amounts described herein, in the manner and under
the conditions prescribed herein.  The Plan shall in no way be
interpreted to require the Company to transfer any amounts to a third party
trustee or otherwise hold any amounts in trust or escrow for payment to any
participant or beneficiary under the terms of the Plan.

     

    16.2         Nonexclusivity
of the Plan.

     

    Neither
the adoption of the Plan nor the submission of the Plan to the stockholders of
the Company entitled to vote thereon for approval shall be construed as creating
any limitations upon the right and authority of the Board to adopt such other
incentive compensation arrangements (which arrangements may be applicable either
generally to a class or classes of individuals or specifically to a particular
individual or particular individuals) as the Board in its discretion determines
desirable, including, without limitation, the granting of stock options
otherwise than under the Plan.

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

     

    16.3         Captions.

     

    The use
of captions in this Plan or any Award Agreement is for the convenience of
reference only and shall not affect the meaning of any provision hereof or
thereof.

     

    16.4         Other
Award Agreement Provisions.

     

    Each
Award under the Plan may contain such other terms and conditions not
inconsistent with the Plan as may be determined by the Board, in its sole
discretion.

     

    16.5         Number
and Gender.

     

    With
respect to words used in this Plan, the singular form shall include the plural
form, the masculine gender shall include the feminine gender, etc., as the
context requires.

     

    16.6         Severability.

     

    If any
provision of the Plan or any Award Agreement shall be determined to be illegal
or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance
with their terms, and all provisions shall remain enforceable in any other
jurisdiction.

     

    16.7         Governing
Law.

     

    The
validity and construction of this Plan and the instruments evidencing the Awards
awarded hereunder shall be governed by the laws of the State of Maryland other
than any conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of this Plan and the instruments evidencing the
Awards awarded hereunder to the substantive laws of any other
jurisdiction.

     

    16.8         Code
Section 409A.

     

    The Board
intends to comply with Section 409A of the Code, or an exemption to Section 409A
of the Code, with regard to Awards hereunder that constitute nonqualified
deferred compensation within the meaning of Section 409A of the
Code.  To the extent that the Board determines that a Grantee would be
subject to the additional twenty percent (20%) tax imposed on certain
nonqualified deferred compensation plans pursuant to Section 409A of the Code as
a result of any provision of any Award granted under this Plan, such provision
shall be deemed amended to the minimum extent necessary to avoid application of
such additional tax.  The nature of any such amendment shall be
determined by the Board.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    To record
adoption of the Plan by the Board as of July 31, 2008, and approval of the Plan
by the stockholders entitled to vote thereon on July 31, 2008, the Company has
caused its authorized officer to execute the Plan.  This 2008 Plan is
executed and adopted as of the 31st day of
July 2008 and Amended the 30th day of
January 2009.

     

    
      
        	
                THE
      KEYW CORPORATION

              
	 
      	 
      
	
                By:

              	
                /s/ Leonard E. Moodispaw

              
	 
      	
                Name:
      Leonard E. Moodispaw

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