Document:

Exhibit 10.94

September 29, 1999

     Telos  Corporation  (the  "Company")  would like to provide you and certain
other  investors  with the  opportunity  to exchange  the  subordinated  Note(s)
purchased  from the Company  (each a "Note" and  collectively  the "Notes") into
shares of common stock,  par value $.01 per share (the "Common  Stock"),  of the
Company's majority-owned  subsidiary,  Enterworks,  Inc., a Delaware corporation
("Enterworks"),  in  accordance  with the  terms of this  letter  agreement.  By
signing and returning  this letter  agreement and tendering  your Note(s) to the
Company,  you will become  entitled to receive,  in exchange for the outstanding
principal  amount and all accrued but unpaid interest under the tendered Note(s)
through the conversion date (the  "Conversion  Date"),  that number of shares of
Common  Stock  equal to the  outstanding  principal  amount of the  Note(s)  you
tender. For example,  if the outstanding  principal amount under your Note(s) is
$100 and accrued but unpaid  interest  thereon is $5 as of the Conversion  Date,
you will be entitled to receive 100 shares of Common Stock upon  conversion  and
cancellation of such Note(s) on the Conversion Date.

     On the  date  of  the  first  closing  in the  currently  proposed  private
placement  (the  "Private  Placement"),  the Company will transfer to you one or
more Common Stock share  certificates  evidencing  the number of shares to which
you are  entitled  in  connection  with this  exchange.  You are the holder of a
Note(s) in the amount of (dollars)  dollars,  therefore your Note(s) would be
converted into (shares)  shares of Common Stock. The Common Stock to be issued
to you in exchange for your Note(s) will have and be subject to the same rights,
preferences, limitations and restrictions under the Articles of Incorporation of
Enterworks  as the  Common  Stock  of  Enterworks  into  which  the  convertible
preferred stock proposed to be issued in connection  with the Private  Placement
will be convertible. In addition, you will be entitled to become a party to, and
obtain the same rights and benefits  with respect to your shares of Common Stock
of  Enterworks  under,  any  stockholders  agreement  or  similar  agreement  or
arrangement  (whether written or oral) as any investor in the Private  Placement
providing for, among other things, registration,  pre-emptive,  co-sale or other
similar  rights or  benefits.  The Company  will  provide you with a schedule of
shareholders  as  soon  as  practical  following  the  closing  of  the  Private
Placement.

     If you wish to have your  Note(s)  converted  into shares of Common  Stock,
please  countersign  this  letter  in  the  signature  block  below,  request  a
Conversion  Date on or after  October 1,  1999,  provide  all other  information
requested below and return this letter  agreement to me along with your original
Note(s) at your earliest convenience,  but not later than September 27, 1999. If
you do not  request a  Conversion  Date  after  October  1,  1999,  or request a
Conversion  Date that occurs after the date of the first  closing in  connection
with the Private Placement, you agree that your Note(s) will be exchanged on the
date of the first closing to occur in connection with the Private Placement.  If
you do not  wish  to  convert  your  Note(s),  the  courtesy  of a  response  is
nonetheless appreciated.

         By  signing  below,  you (i) agree and  acknowledge  that the shares of
Common  Stock you receive will not be  registered  under the  Securities  Act of
1933, as amended (the  "Securities  Act"), or applicable  state securities laws,
are aware that you cannot sell,  assign,  transfer or otherwise  dispose of such
shares unless they are registered  under the Securities Act and applicable state
securities  laws or an opinion is given by counsel  satisfactory  to the Company
that  such  registration  is not  required,  and  agree  that  the  certificates
evidencing  the  shares  will  contain a legend to the  foregoing  effect,  (ii)
represent  that  you  have  substantial   knowledge  and  experience  in  making
investment  decisions of this type and are capable of evaluating  the merits and
risks of this  exchange,  and (iii)  have been  offered  an  opportunity  to ask
questions and receive answers from  Enterworks' and the Company's  management to
your complete satisfaction.

         Neither the Company nor Enterworks can assure you that  Enterworks will
receive any funds in connection  with the Private  Placement,  and therefore the
Company must, and does, retain the right to terminate this agreement to exchange
your Note(s) at any time by written notice to you for any reason,  in which case
the  Company  will  tender  your  Note(s)  back to you as  soon  as  practicable
thereafter.  Furthermore,  the Company will terminate this agreement (and tender
your  Note(s)  back to you) if an amount of funds  equal to or greater  than $15
million is not raised in the above referenced Private  Placement.  In any event,
the Company  will tender  your  Note(s)  back within 90 days of the date of this
letter  agreement in the event the Conversion  Date does not occur prior to such
time.  Please  let us  know  your  decision  at  your  earliest  convenience.  I
appreciate your attention to this matter.

Very truly yours,

William L. P. Brownley
Vice President and General Counsel

         By signing  below, I agree that my Note(s) may be converted into shares
of Common Stock on the date of the first closing in connection  with the Private
Placement,  or on  ___________________  (insert Conversion Date) as set forth in
this letter agreement and that in such event the Note(s) attached hereto will be
cancelled  by  the  Company  on the  Conversion  Date.  Please  issue  my  share
CERTIFICATE(S)  TO  (insert  name of person  or  entity in whose  name the share
certificates should be issued).

AGREED AND ACKNOWLEDGED,

FOR INVESTORS OTHER THAN NATURAL PERSONS:

ATTEST:  _________         [INSERT NAME OF INVESTOR]

_________________________  By:__________________________
         _________                          Name:
         _________                          Title:

FOR INVESTORS WHO ARE NATURAL PERSONS:

WITNESS: _________         [INSERT NAME OF INVESTOR]

----------------------     -----------------------------
Name:    _________                  Name:Exhibit 10.96
                              TRANSACTION AGREEMENT

         THIS TRANSACTION  AGREEMENT (THIS "AGREEMENT") IS MADE THIS 29TH DAY OF
SEPTEMBER, 1999, BETWEEN TELOS CORPORATION, a MARYLAND CORPORATION ("TELOS") AND
ENTERWORKS, INC., a Delaware corporation ("Enterworks").

                                 R E C I T A L S

         WHEREAS,  to finance the start up and operations of  Enterworks,  Telos
         has loaned Enterworks approximately  $30,000,000 as of the date hereof,
         and presently  intends to continue to fund the operations of Enterworks
         in the ordinary  course until the closing of the minimum amount offered
         in the currently  proposed private placement (the "Private  Placement")
         of up to $25,000,000 in common stock of the Company, par value $.01 per
         share  (the  "Company   Stock")  by  Deutsche  Banc  Alex.  Brown  (the
         "Placement Agent");

         WHEREAS,  Board of  Directors  of  Enterworks,  upon the  advice of the
         Placement  Agent,  has  determined  that it is necessary to restructure
         Enterworks' balance sheet to provide for the forgiveness of the amounts
         loaned to  Enterworks  by Telos  through  the date  (the  "Cancellation
         Date") of the  closing of the  minimum  amount in  connection  with the
         Private  Placement  (the "Telos  Shareholder  Loan Amount") as provided
         herein; and

         WHEREAS,  as part of the general  restructuring of the balance sheet of
         Enterworks in  anticipation  of the Private  Placement,  Enterworks has
         agreed to issue Telos 4,000,000  shares of common stock, par value $.01
         per share ("Common Stock") pursuant to the terms of this Agreement;

         WHEREAS,  Telos  desires to contribute  1,000,000  shares of Enterworks
         Common Stock owned by Telos to the capital of  Enterworks  for issuance
         to  certain  members  of  management  of Telos  (the  "Grantees")  upon
         exercise  of options to be granted  pursuant to  Enterworks  1996 Stock
         Option Plan;

                                A G R E E M E N T

         NOW, THEREFORE,  for good and valuable  consideration,  the receipt and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

SECTION ONE.  ____BACKGROUND OF AGREEMENT.  The agreements set forth in Sections
2, 3 and 4 below  are  entered  into as part of a general  restructuring  of the
balance sheet of Enterworks  upon the advice of the Placement  Agent in order to
permit the successful  offering of Common Stock in the Private  Placement  which
may  alleviate  the cash flow drain on Telos in  connection  with the funding of
Enterworks by Telos and provide  Enterworks  with the ability to seek additional
sources of funding other than Telos from and after the Private Placement.

SECTION TWO.______CANCELLATION OF INDEBTEDNESS. Telos hereby agrees, with effect
from Cancellation  Date, to forgive and cancel the Telos Shareholder Loan Amount
on the Cancellation  Date in the event Enterworks  receives at least the minimum
offering amount in connection with the Private Placement on such date.

SECTION  THREE.____SHARE  ISSUANCE TO TELOS.  Enterworks  agrees to issue Telos,
with effect from the  Cancellation  Date, on the  Cancellation  Date,  4,000,000
shares of Common Stock, such shares upon issuance to be duly authorized, validly
issued, fully paid and non-assessable shares of Common Stock.

SECTION  FOUR._____SHARE  TRANSFER TO  ENTERWORKS.  Telos agrees to  immediately
transfer to  Enterworks  1,000,000  shares of Common  Stock,  for the purpose of
reserving  such shares for  issuance  upon  exercise  of options  granted to the
Grantees pursuant to the Enterworks 1996 Stock Option Plan.

SECTION FIVE._____CONTINUED  FUNDING. Telos' present intention is to continue to
fund  Enterworks  in the  ordinary  course from the date hereof  until the first
closing in  connection  with the  Private  Placement  in order to  facilitate  a
successful  consummation  of the  Private  Placement;  provided,  however,  that
circumstances  may require Telos to discontinue such funding upon written notice
to Telos.

SECTION  SIX.______GENERAL.  This  Agreement may not be  supplemented,  changed,
waived, discharged, terminated, modified or amended except by written instrument
executed  by the  parties  hereto,  and shall be  binding  upon and inure to the
benefit of the parties hereto and their respective  successors and assigns.  The
Recitals  set  forth  above  shall be deemed  to be a  substantive  part of this
Agreement and may be used to construe and interpret the terms hereof.

SECTION  SEVEN.____GOVERNING  LAW. All Questions  Concerning  the  Construction,
Validity, Interpretation or Subject Matter of This Agreement Will be Governed by
and Construed in Accordance  the Internal Law, and Not the Law of Conflicts,  of
the State of Delaware.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                            TELOS CORPORATION

                                       By: /s/ William L.P. Brownley
                                       Name:   William L.P. Brownley
                                       Title:  Vice President/General Counsel

                                            ENTERWORKS, INC.

                                       By: /s/ Dee Ann Revere
                                       Name:   Dee Ann Revere
                                       Title:  Vice President/General Counsel

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