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Exhibit 4.1  

 
  REGISTRATION RIGHTS AGREEMENT    
  

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of October 29, 1998, by and among SI
International, Inc., a Delaware corporation (the "Company"), SI International, L.L.C., a Delaware limited liability company (the
"LLC"), Frontenac and the Management Members. Capitalized terms used but not otherwise defined herein have the meanings set forth in
Section 8 hereof. 

        NOW,
THEREFORE, in consideration of the mutual promises made herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows: 

        1.    Demand Registrations.

        (a)    Requests
for Registration. At any time after the date hereof and prior to the Company's Initial Public Offering, the LLC (and, upon the
LLC's dissolution, the holders of a majority of the Frontenac Registrable Securities then outstanding) may request registration under the Securities Act of all or any portion of their Registrable
Securities on Form S-l or any similar long-form registration (a "Long-Form Registration"). After the Company's Initial Public
Offering, the LLC may request three Long-Form Registrations and an unlimited number of Short-Form Registrations (as defined below). If after the Company's Initial Public
Offering, the LLC dissolves: (i) the holders of a majority of the Frontenac Registrable Securities then outstanding, may request up to two Long-Form Registrations, (ii) the
holders of at least 5% of the Registrable Securities then outstanding may request an unlimited number of registrations under the Securities Act of all or any portion of their Registrable Securities on
Form S-3 or any similar short-form registration ("Short-Form Registrations") if available; provided
that the aggregate offering value of the Registrable Securities requested to be registered in any registration under this Section l(a) (any "Demand
Registration") must equal at least $20 million if the registration is the Company's Initial Public Offering, at least $10 million in any other Long-Form
Registration, and at least $10 million in any Short-Form Registration. 

        All
requests for Demand Registrations shall be made by giving written notice to the Company (the "Demand Notice"). Each Demand Notice shall specify the
approximate number of Registrable Securities requested to be registered and the anticipated per share price range for such offering. Within ten days after receipt of any Demand Notice, the Company
shall give written notice of such requested registration to all other holders of Registrable Securities and, subject to the provisions of Section l(d) below, shall
include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 15 days after the receipt of the Company's
notice. 

        (b)    Expenses;
Withdrawal. The Company shall pay all Registration Expenses of all holders of Registrable Securities in all Demand Registrations.
A registration shall not count as one of the permitted Long-Form Registrations until it has become effective or if the holders of Registrable Securities initially requesting such
registration are not able to register and sell at least 90% of the Registrable Securities requested to be included in such registration; provided that the Company shall in
any event pay all Registration Expenses in connection with any registration initiated as a Demand Registration whether or not it has become effective and whether or not such registration has counted
as one of the permitted Long-Form Registrations. All Long-Form Registrations shall be underwritten registrations unless otherwise requested by the holders of a majority of the
Registrable Securities included in the applicable Long-Form Registration. 

        (c)    Short-Form
Registrations. Demand Registrations shall be Short-Form Registrations whenever the Company is permitted
to use any applicable short form. After the Company has become subject to the reporting requirements of the Securities Exchange Act, the Company shall use its best efforts to make
Short-Form Registrations on Form S-3 (or any successor form) available for the sale of Registrable Securities. 

 

        (d)    Priority
on Demand Registrations. The Company shall not include in any Demand Registration any securities which are not Registrable
Securities without the prior written consent of the holders of a majority of the Registrable Securities included in such registration. If a Demand Registration is an underwritten offering and the
managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in such offering
exceeds the number of Registrable Securities and other securities, if any, which can be sold in an orderly manner in such offering within a price range acceptable to the holders of a majority of the
Registrable Securities initially requesting registration, the Company shall include in such registration the number which can be so sold in the following order of priorities: (i) first, the
Registrable Securities requested to be included in such registration, pro rata among the holders of such Registrable Securities on the basis of the number of shares owned by each such holder, and
(ii) second, other securities requested to be included in such registration. Notwithstanding the foregoing, if a
Demand Registration is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities held by Management Members (or
their family members) requested to be included in such offering would adversely affect the marketability of the offering, the Company shall be entitled to exclude from such offering the Registrable
Securities held by such Management Members (or their family members). 

        (e)    Restrictions
on Long-Form Registrations. The Company shall not be obligated to effect any Demand Registration which is a
Long-Form Registration within 180 days after the effective date of a previous Demand Registration which was a Long-Form Registration or a previous registration in which
the holders of Registrable Securities were given piggyback rights pursuant to Section 2 and in which there was no reduction in the number of Registrable Securities
requested to be included. The Company may postpone for up to 180 days the filing or the effectiveness of a registration statement for a Demand Registration if the Company's board of directors
(the "Board") determines in its reasonable good faith judgment that such Demand Registration would reasonably be expected to have a material adverse effect on any proposal
or plan by the Company or any of its Subsidiaries to engage in any acquisition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer, reorganization or
similar transaction; provided that in such event, the holders of Registrable Securities initially requesting such Demand Registration shall be entitled to withdraw such
request and, if such request is withdrawn, such Demand Registration shall not count as one of the permitted Demand Registrations hereunder and the Company shall pay all Registration Expenses in
connection with such withdrawn registration. The Company may delay a Demand Registration hereunder only once in any twelve-month period. 

        (f)    Selection
of Underwriters. Subject to the approval rights granted to the LLC (and, upon the LLC's dissolution, to certain holders of the
Company's securities) under the Stock Purchase Agreement, the Board shall select the investment banker(s) and manager(s) to administer the offering. 

        (g)    Other
Registration Rights. Except as provided in this Agreement (including Section 9(d)), the Company
shall not grant to any Persons the right to request the Company to register any equity securities of the Company, or any securities convertible or exchangeable into or exercisable for such securities,
without the prior written consent of the holders of a majority of the Frontenac Registrable Securities (or, if none, Registrable Securities) then outstanding; provided
that the Company may grant rights to other Persons to participate in Piggyback Registrations so long as such rights are subordinate to the rights of the holders of Registrable Securities with respect
to such Piggyback Registrations. 

        2.    Piggyback Registrations.  

        (a)    Right to Piggyback. Whenever the Company proposes to register any of its securities under the Securities Act (other
than pursuant to a Demand Registration) and the registration form to be used may be used for the registration of Registrable Securities (a "Piggyback Registration"), the
Company shall give prompt written notice (in any event within three business days after its receipt of notice of 

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any exercise of demand registration rights other than under this Agreement) to all holders of Registrable Securities of its intention to effect such a registration and shall include in such
registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 20 days after the receipt of the Company's notice. 

        (b)    Piggyback
Expenses. The Registration Expenses of the holders of Registrable Securities shall be paid by the Company in all Piggyback
Registrations. 

        (c)    Priority
on Primary Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the Company, and the
managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in an orderly
manner in such offering within a price range acceptable to the Company, the Company shall include in such registration (i) first, the securities the Company proposes to sell,
(ii) second, the Registrable Securities requested to be included in such registration, pro rata among the holders of such Registrable Securities on the basis of the number of shares owned by
each such holder, and (iii) third, other securities requested to be included in such registration. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten offering and the
managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities held by Management Members (or their family members) requested to be included in such
offering would adversely affect the marketability of the offering, the Company shall be entitled to exclude from such offering the Registrable Securities held by such Management Members (or their
family members). 

        (d)    Priority
on Secondary Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the
Company's securities, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which
can be sold in an orderly manner in such offering within a price range acceptable to the holders initially requesting such registration, the Company shall include in such registration
(i) first, the securities requested to be included therein by the holders requesting such registration and the Registrable Securities requested to be included in such registration, pro rata
among the holders of any such securities on the basis of the number of securities so requested to be included therein owned by each such holder, and (ii) second, other securities requested to be
included in such registration. Notwithstanding the foregoing, if a Piggyback Registration is an underwritten secondary offering and the managing underwriters advise the Company in writing that in
their opinion the number of Registrable Securities held by Management Members (or their family members) requested to be included in such offering would adversely affect the marketability of the
offering, the Company shall be entitled to exclude from such offering the Registrable Securities held by such Management Members (or their family members). 

        (e)    Selection
of Underwriters. Subject to the approval rights granted to the LLC (and, upon the LLC's dissolution, to certain holders of the
Company's securities) under the Stock Purchase Agreement, the Board shall select the investment banker(s) and manager(s) to administer the offering. 

        (f)    Other
Registrations. If the Company has previously filed a registration statement with respect to Registrable Securities pursuant to
Section 1 or pursuant to this Section 2, and if such previous registration has not been withdrawn or abandoned, the Company
shall not file or cause to be effected any other registration of any of its equity securities or securities convertible or exchangeable into or exercisable for its equity securities under the
Securities Act (except on Form S-8 or any successor form), whether on its own behalf or at the request of any holder or holders of such securities, until a period of at least
180 days has elapsed from the effective date of such previous registration. 

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        3.    Holdback Agreements.  

        (a)    Holders of Registrable Securities. Each holder of Registrable Securities shall not effect any public sale or
distribution (including sales pursuant to Rule 144) of equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, during the seven
days prior to and (i) the 180-day period beginning on the effective date of the Initial Public Offering in the case of the Initial Public Offering and (ii) the
90-day period beginning on the effective date of any other underwritten Demand Registration or any underwritten Piggyback Registration in which Registrable Securities are included (in each
case, except as part of such underwritten registration), unless in each case the underwriters managing the registered public offering otherwise agree. 

        (b)    The
Company. The Company (i) shall not effect any public sale or distribution of its equity securities, or any securities convertible
into or exchangeable or exercisable for such securities, during the seven days prior to and during the 180-day period beginning on the effective date of any underwritten Demand
Registration or any underwritten Piggyback Registration (except as part of such underwritten registration or pursuant to registrations on Form S-8 or any successor form), unless the
underwriters managing the registered public offering otherwise agree, and (ii) shall cause each holder of its Common Stock, or any securities convertible into or exchangeable or exercisable for
Common Stock, purchased from the Company at any time after the date of this Agreement (other than in a registered public offering or pursuant to Rule 144) to agree not to effect any public sale
or distribution (including sales pursuant to Rule 144) of any such securities during such period (except as part of such underwritten registration, if otherwise permitted), unless the
underwriters managing the registered public offering otherwise agree. 

        4.    Registration Procedures. Whenever the holders of Registrable Securities have requested that
any Registrable Securities be registered pursuant to this Agreement, the Company shall use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with
the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as possible: 

        (a)    prepare
and file with the Securities and Exchange Commission a registration statement with respect to such Registrable Securities and use its best efforts to cause such
registration statement to become effective (provided that before filing a registration statement or prospectus or any amendments or
supplements thereto, the Company shall furnish to the counsel selected by the holders of a majority of the Registrable Securities covered by such registration statement copies of all such documents
proposed to be filed, which documents shall be subject to the review and comment of such counsel); 

        (b)    notify
each holder of Registrable Securities of the effectiveness of each registration statement filed hereunder and prepare and file with the Securities and Exchange
Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period
of not less than 180 days and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; 

        (c)    furnish
to each seller of Registrable Securities such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in
such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such seller; 

        (d)    use
its best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller reasonably
requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to 

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consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company shall not be required to (i) qualify generally to do business in
any jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general
service of process in any such jurisdiction); 

        (e)    notify
each seller of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not
misleading, and, at the request of any such seller, the Company shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 

        (f)    cause
all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and, if not so listed,
to be listed on the Nasdaq and, if listed on the Nasdaq, use its best efforts to secure designation of all such Registrable Securities covered by such registration statement as a Nasdaq "national
market system security" within the meaning of Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to secure Nasdaq authorization for such Registrable Securities
and, without limiting the generality of the foregoing, to
arrange for at least two market makers to register as such with respect to such Registrable Securities with the NASD; 

        (g)    provide
a transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement; 

        (h)    enter
into such customary agreements (including underwriting agreements in customary form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including effecting a stock split
or a combination of shares); 

        (i)    make
available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Company, and cause the Company's
officers, directors, employees and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such
registration statement; 

        (j)    otherwise
use its best efforts to comply with all applicable rules and regulations of the Securities and Exchange Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company's first full calendar quarter after the effective
date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; 

        (k)    permit
any holder of Registrable Securities which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person of the
Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Company in writing, which in the reasonable
judgment of such holder and its counsel should be included; 

        (l)    in
the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related
prospectus or suspending 

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the qualification of any common stock included in such registration statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain the withdrawal of such order; 

        (m)    obtain
a cold comfort letter from the Company's independent public accountants in customary form and covering such matters of the type customarily covered by cold
comfort letters as the holders of a majority of the Registrable Securities being sold reasonably request; and 

        (n)    use
its best efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies or
authorities as may be necessary to enable the sellers thereof to consummate the disposition of the Registrable Securities. 

        5.    Registration Expenses.  

        (a)    Expenses. All expenses incident to the Company's performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians,
and fees and disbursements of counsel for the Company and all independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company
(all such expenses being herein called "Registration Expenses"), shall be borne as provided in this Agreement, except that the Company shall, in any event, pay its
internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review,
the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued by the Company are then
listed or on the Nasdaq. 

        (b)    Reimbursement
of Counsel. In connection with each Demand Registration and each Piggyback Registration, the Company shall reimburse the
holders of Registrable Securities included in such registration for the reasonable fees and disbursements of one counsel chosen by the holders of a majority of the Frontenac Registrable Securities
(or, if none, Registrable Securities) included in such registration and for the reasonable fees and disbursements of each additional counsel retained by any holder of Registrable Securities solely for
the purpose of rendering a legal opinion to underwriters on behalf of such holder in connection with any underwritten Demand Registration or Piggyback Registration. 

        (c)    Payment
of Certain Expenses by Holders of Registrable Securities. Underwriting discounts and commissions and transfer taxes relating to the
Registrable Securities included in any registration hereunder, and all fees and expenses of counsel for any holder of Registrable Securities (other than fees and expenses to be reimbursed by the
Company as set forth in Section (b) above) shall be borne and paid by the holders of such Registrable Securities. 

        6.    Indemnification.  

        (a)    The Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Securities, its officers and directors and each
Person that controls such holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses caused by any untrue or alleged untrue statement of material
fact contained in any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder
expressly for use therein or by such holder's failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company has furnished such holder
with a sufficient number of copies of the same. In connection with an underwritten offering, the Company shall indemnify such underwriters, their officers and directors 

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and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the holders of Registrable
Securities. 

        (b)    In
connection with any registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company,
its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from any untrue
or alleged untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the net
amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such registration statement. 

        (c)    Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not impair any Person's right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party)
and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any
liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to,
assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in
the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. 

        (d)    The
indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party
or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. The Company also agrees to make such provisions, as are reasonably requested by
any indemnified party, for contribution to such party in the event the Company's indemnification is unavailable for any reason such that such provisions provide the same obligations and benefits to
the indemnified party as those which would have been applicable had the indemnification provisions in Sections 6(a) and (b) been available
taking into account all of the limitations set forth in Sections 6(a) and (b). 

        7.    Participation in Underwritten Registrations. No Person may participate in any registration
hereunder which is underwritten unless such Person (i) agrees to sell such Person's securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled
hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms
of such underwriting arrangements; provided that no holder of Registrable Securities included in any underwritten registration shall be required to make any
representations or warranties to the Company or the underwriters (other than representations and warranties regarding such holder and such holder's intended method of distribution) or to undertake any
indemnification obligations to the Company with respect thereto, except as otherwise provided in Section 6(b) hereof, or to the underwriters with respect thereto,
except to the extent of the indemnification being given to the Company and its controlling persons in Section 6(a) hereof. 

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        8.    Definitions.  

        "Class A Units" has the meaning ascribed to such term in the LLC Agreement. 

        "Class B
Units" has the meaning ascribed to such term in the LLC Agreement, 

        "Common
Stock" means the Company's Common Stock, par value $.01 per share. 

        "Frontenac"
has the meaning ascribed to such term in the Stock Purchase Agreement. 

        "Frontenac
Registrable Securities" means Registrable Securities distributed upon liquidation of the LLC to the holders of any Class A Units initially
issued to Frontenac under the Investor Purchase Agreement. 

        "Initial
Public Offering" means a sale of Common Stock to the public registered under the Securities Act on Form S-l or any similar form. 

        "Investor
Purchase Agreement" means that certain purchase agreement of even date herewith by and between the LLC and Frontenac. 

        "LLC
Agreement" means that certain limited liability company agreement of even date herewith entered into by and among the members of the LLC, as amended
from time to time according to its terms. 

        "Management
Agreements" has the meaning ascribed to such term in the LLC Agreement. 

        "Management
Members" has the meaning ascribed to such term in the LLC Agreement. 

        "Management
Registrable Securities" means Registrable Securities distributed upon liquidation of the LLC to the holders of any Class A Units or
Class B Units issued to any Management Member pursuant to a Management Agreement. 

        "Person"
means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 

        "Registrable
Securities" means (i) any Common Stock issued with respect to any Class A Units or Class B Units upon the dissolution and
liquidation of the LLC, (ii) any Common Stock issued or issuable with respect to the securities referred to in clause (i) by way of a stock dividend or stock split or in connection with
a combination of shares, recapitalization, merger, consolidation or other reorganization, and (iii) any other Common Stock of the Company held by any holder of Registrable Securities;
provided that with respect to any Registrable Securities, such securities shall cease to be Registrable Securities when they have been distributed to the public pursuant
to an offering registered under the Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule
promulgated by the Securities Exchange Commission then in force). 

        "Securities
Act" means the Securities Act of 1933, as amended from time to time. 

        "Stock
Purchase Agreement" means that certain stock purchase agreement of even date herewith by and between the Company and the LLC, as amended from time to
time in accordance with its terms. 

        "Unit"
has the meaning ascribed to such term in the LLC Agreement. 

        9.    Miscellaneous.  

        (a)    No Inconsistent Agreements. The Company shall not hereafter enter into any agreement with respect to its securities
which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 

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        (b)    Adjustments
Affecting Registrable Securities. The Company shall not take any action, or permit any change to occur, with respect to its
securities which would materially and adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this
Agreement or which would materially and adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation, effecting a stock split or a
combination of shares). 

        (c)    Remedies.
Any Person having rights under any provision of this Agreement shall be entitled to enforce such rights specifically, to recover
damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money damages may not be an
adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond
or other security) for specific performance and for other injunctive relief in order to enforce or prevent violation of the provisions of this Agreement. 

        (d)    Amendments
and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended or waived only (i) prior
to the dissolution of the LLC, upon the prior written consent of the Company and the LLC or (ii) after the dissolution of the LLC, the holders of a majority of the Frontenac Registrable
Securities; provided that if any such amendment or waiver would adversely affect any class of Registrable Securities relative to the holders of Frontenac Registrable
Securities voting in favor of such amendment or waiver, such amendment or waiver shall also require the approval of the holders of a majority of the class of Registrable Securities held by all holders
so adversely affected. 

        (e)    Successors
and Assigns. All covenants and agreements in this Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. In addition, whether or not any express assignment has been made, the provisions of this
Agreement which are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of Registrable Securities. 

        (f)    Severability.
Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement. 

        (g)    Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together shall constitute one and the same Agreement. Any Management Member may at any time after the date hereof, with the prior written approval
of the LLC and the Company, become a party to this Agreement by executing a counterpart to this Agreement agreeing to be bound by the provisions hereof as if such Management Member were an original
signatory hereto (which joinder shall not constitute a modification, amendment, or waiver hereof). 

        (h)    Descriptive
Headings: Interpretation: No Strict Construction. The descriptive headings of this Agreement are inserted for convenience only
and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms,
and the singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument as
amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. The use of the words "include" or "including" in this Agreement shall be by way of
example rather than by limitation. The use of the words "or," "either" or "any" shall not be exclusive. The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or 

9

 

interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this Agreement. 

        (i)    Governing Law. The corporate law of the State of Delaware shall govern all issues and questions concerning the
relative rights of the Company and its stockholders. All other issues and questions concerning the construction, validity, interpretation and enforcement of this Agreement and the exhibits and
schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether
of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

        (j)    Notices.
All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given when (a) delivered personally to the recipient, (b) telecopied to the recipient (with hard copy sent to the recipient by reputable
overnight courier service (charges prepaid) that same day) if telecopied before 5:00 p.m. Chicago, Illinois time on a business day, and otherwise on the next business day, or (c) one
business day after being sent to the recipient by reputable overnight courier service (charges prepaid). Such notices, demands and other communications shall be sent to the Company at the address set
forth below and to any holder of Registrable Securities at such address as indicated by the Company's records, or at such address or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party. The Company's address is: 

c/o
Frontenac Company

135 South LaSalle Street

Suite 3800

Chicago, Illinois 60603

Attention: James E. Crawford, III

Telephone: (312) 368-0044

Telecopy: (312) 368-9520 

        (k)    Business
Days. If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or legal holiday
in the state in which the Company's chief-executive office is located, the time period shall automatically be extended to the business day immediately following such Saturday, Sunday or legal holiday. 

        (l)    Delivery
by Facsimile. This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine, shall be treated in all manner and
respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of
any party hereto or to any such agreement or instrument, each other party hereto or thereto shall reexecute original forms thereof and deliver them to all other parties. No party hereto or to any such
agreement or instrument shall raise the use of a facsimile machine to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract and each such party forever waives any such defense. 

*        *        *        *        * 

10

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 

	 	 	 	SI INTERNATIONAL, INC.
	

 	

 	
 	

By:	

/s/  RAY J. OLESON      
	 	 	 	Its:	President
	

*By:	

Frontenac VII Limited Partnership	
 	
SI INTERNATIONAL, L.L.C.
	  Its:	Managing Member	 	 	 
	  By:	Frontenac Company VII, L.L.C.	 	By:	/s/  JAMES E CRAWFORD, III      
	  Its:	General Partner	 	Its:	Principal
	

 	

 	
 	

/s/  WALTER J. CULVER   

Dr. Walter J. Culver
	

 	

 	
 	

/s/  RAY J. OLESON    

Ray J. Oleson
	

 	

 	
 	

/s/  THOMAS LLOYD   

Thomas Lloyd
	

 	

 	
 	
FRONTENAC VII LIMITED PARTNERSHIP
	

 	

 	
 	

By:	

Frontenac Company VII, L.L.C.
	 	 	 	Its:	General Partner
	

 	

 	
 	

By:	

/s/  JAMES E. CRAWFORD, III      
	 	 	 	Its:	Principal
	

 	

 	
 	
FRONTENAC MASTERS VII LIMITED PARTNERSHIP
	

 	

 	
 	

By:	

Frontenac Company VII, L.L.C.
	 	 	 	Its:	General Partner
	

 	

 	
 	

By:	

/s/  JAMES E. CRAWFORD, III      
	 	 	 	Its:	Principal

11

 
 

AMENDMENT NO. 1
  TO
  REGISTRATION RIGHTS AGREEMENT    
  

        THIS AMENDMENT NO. 1, effective as of March 9, 2000, is made by SI International, L.L.C., a Delaware limited liability company (the
"LLC") and SI International, Inc., a Delaware corporation (the "Company"). 

        The
LLC and the Company are parties to a Registration Rights Agreement dated as of October 29, 1998 (the "Pre-Amendment Registration Rights
Agreement"). Pursuant to Section 9(d) Pre-Amendment Registration Rights Agreement, the LLC and the Company desire to amend the Pre-Amendment
Registration Rights Agreement. Each capitalized term that is not otherwise defined in this Amendment shall have the meaning which the Pre-Amendment Registration Rights Agreement assigns to such term. 

        The
parties hereto agree as follows: 

        1.    Conflicts.    Section 9 of the Pre-Amendment
Registration Rights Agreement is hereby amended by adding the following subsection. 

        (m)    Conflicts.    Notwithstanding anything contained herein to the contrary, in the
event that and to the extent that the provisions of this Agreement are in conflict with the provisions of the Warrantholders Right Agreement dated as of March 9, 2000 among the Company, the
LLC, Frontenac and Banc of America Commercial Finance Corporation (the "Warrantholders Right Agreement"), the provisions of the Warrantholders Rights Agreements shall
control. 

        2.    Counterparts.    This Amendment may be executed in any number of counterparts, any
one of which need not contain the signatures of more than one party, but all of such counterparts together shall constitute one amendment. 

        3.    Governing Law.    All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordant with, the laws of the State of Delaware, without giving effect
to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the
State of Delaware. In furtherance of the foregoing, the internal law of the State of Delaware shall control the interpretation and construction of this Agreement (and all schedules and exhibits
hereto), even though under that
jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply. 

        4.    Effect on Pre-Amendment Registration Rights Agreement.    Except as it is otherwise
expressly amended or modified by this Amendment, the Pre-Amendment Registration Rights Agreement remains in full force and effect. 

*        *        *        *        *

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above. 

	 	 	SI INTERNATIONAL, INC.
	

 	
 	

By:	
 	

/s/  DAVID A. KARISH      
	 	 	Its:	 	Vice President
	

 	
 	

SI INTERNATIONAL, L.L.C.
	

 	
 	

By:	
 	

Frontenac VII Limited Partnership
	 	 	Its:	 	Managing Member
	

 	
 	

By:	
 	

Frontenac Company VII, L.L.C.
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

/s/  JAMES E. CRAWFORD, III      
	 	 	Its:	 	Member

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AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENTQuickLinks
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Exhibit 10.1  

 
 

FORM OF
  SI INTERNATIONAL, INC. 2002 STOCK INCENTIVE PLAN    
  

1.    Purpose  

        The SI International, Inc. 2002 Stock Incentive Plan is intended to promote the best interests of SI International, Inc. and its stockholders by
(i) assisting the Corporation and its Affiliates in the recruitment and retention of persons with ability and initiative, (ii) providing an incentive to such persons to contribute to the
growth and success of the Corporation's businesses by affording such persons equity participation in the Corporation and (iii) associating the interests of such persons with those of the
Corporation and its affiliates and stockholders. 

2.    Definitions  

        As used in this Plan the following definitions shall apply: 

        A.
"Affiliate" means (i) any Subsidiary, (ii) any Parent, (iii) any corporation, trade or business (including, without limitation, a
partnership or limited liability company) which is directly or indirectly controlled fifty percent (50%) or more (whether by ownership of stock, assets or an equivalent ownership interest or voting
interest) by the Corporation or one of its Affiliates, and (iv) any other entity in which the Corporation or any of its Affiliates has a material equity interest and which is designated as an
"Affiliate" by resolution of the Committee. 

        B.
"Board" means the Board of Directors of the Corporation. 

        C.
"Cause" means (i) in the case where the Participant does not have an employment, consulting or similar agreement in effect with the Corporation or
its Affiliate at the time of grant of the Option or Stock Award or where there is such an agreement but it does not define "cause" (or words of like import), conduct related to the Participant's
service to the Corporation or an Affiliate for which either criminal or civil penalties against the Participant may be sought, misconduct, insubordination, material violation of the Corporation or its
Affiliate's policies, disclosing or misusing any confidential information or material concerning the Corporation or any Affiliate or material breach of any employment, consulting agreement or similar
agreement, or (ii) in the case where the Participant has an employment agreement, consulting agreement or similar agreement in effect with the Corporation or its Affiliate at the time of grant
of the Option or Stock Award that defines a termination for "cause" (or words of like import), "cause" as defined in such agreement; provided, however, that with regard to any agreement that defines
"cause" on occurrence of or in connection with change of control, such definition of "cause" shall not apply until a change of control actually occurs and then only with regard to a termination
thereafter. 

        D.
"Code" means the Internal Revenue Code of 1986, and any amendments thereto. 

        E.
"Committee" means the Board or any Committee of the Board to which the Board has delegated any responsibility for the implementation, interpretation or
administration of the Plan. 

        F.
"Common Stock" means the common stock, $0.01 par value, of the Corporation. 

        G.
"Consultant" means (i) any person performing consulting or advisory services for the Corporation or any Affiliate, or (ii) a director of an
Affiliate. 

        H.
"Continuous Service" means that the Participant's service with the Corporation or an Affiliate, whether as an employee, Director or Consultant, is not
interrupted or terminated. A Participant's Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the
Corporation or an Affiliate as an employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. The Participant's Continuous 

 

Service shall be deemed to have terminated either upon an actual termination or upon the company for which the Participant is performing services ceasing to be an Affiliate of the Corporation. The
Committee shall determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by the Corporation, including sick leave, military leave or any other
personal leave. 

        I.
"Corporation" means SI International, Inc. a Delaware corporation. 

        J.
"Corporation Law" means the general corporation law of the jurisdiction of incorporation of the Corporation. 

        K.
"Director" means a member of the Board. 

        L.
"Disability" shall have the meaning provided for in Section 22(e)(3) of the Code or any successor statute thereto. 

        M.
"Eligible Person" means an employee of the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption of this
Plan), a Director or a Consultant to the Corporation or an Affiliate (including a corporation that becomes an Affiliate after the adoption of this Plan). 

        N.
"Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        O.
"Fair Market Value" means, on any given date, the current fair market value of the shares of Common Stock as determined as follows: 

        (i)
If the Common Stock is traded on The Nasdaq National Market or The Nasdaq SmallCap Market or is listed on a national securities exchange, the closing price for the day of
determination as quoted on such market or exchange which is the primary market or exchange for trading of the Common Stock or if no trading occurs on such date, the last day on which trading occurred,
or such other appropriate date as determined by the Committee in its discretion, as reported in The Wall Street Journal or such other source as the Committee deems reliable; 

        (ii)
If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high and the low
asked prices for the Common Stock for the day of determination; or 

        (iii)
In the absence of an established market for the Common Stock, Fair Market Value shall be determined by the Committee in good faith. 

        P.
"Incentive Stock Option" means an Option (or portion thereof) intended to qualify for special tax treatment under Section 422 of the Code. 

        Q.
"Listing Date" means the date on which the Corporation has a class of equity securities registered under Section 12 of the Securities Act. 

        R.
"Nonqualified Stock Option" means an Option (or portion thereof) which is not intended or does not for any reason qualify as an Incentive Stock Option. 

        S.
"Option" means any option to purchase shares of Common Stock granted under this Plan. 

        T.
"Parent" means any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation if each of the corporations
(other than the Corporation) owns stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock in one of the other corporations in such chain. 

        U.
"Participant" means an Eligible Person who is selected by the Committee to receive an Option or Stock Award and is party to a Stock Option Agreement or
Stock Award Agreement. 

2

 

        V.
"Plan" means this SI International, Inc. 2002 Stock Incentive Plan. 

        W.
"Restricted Stock Award" means an award of Common Stock under Section 7.B. 

        X.
"Securities Act" means the Securities Act of 1933, as amended. 

        Y.
"Stock Award" means a Stock Bonus Award, Restricted Stock Award or Stock Appreciation Right. 

        Z.
"Stock Bonus Award" means an award of Common Stock under Section 7.A. 

        AA.
"Stock Appreciation Right" means an award of a right of the Participant under Section 7.C to receive a payment based on the increase in Fair
Market Value of the shares of Common Stock covered by the award. 

        BB.
"Stock Award Agreement" means an agreement (written or electronic) between the Corporation and a Participant setting forth the specific terms and
conditions of a Stock Award granted to the Participant under Section 7. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan and shall include such terms and
conditions as the Committee shall authorize. 

        CC.
"Stock Option Agreement" means an agreement (written or electronic) between the Corporation and a Participant setting forth the specific terms and
conditions of an Option granted to the Participant. Each Stock Option Agreement shall be subject to the terms and conditions of the Plan and shall include such terms and conditions as the Committee
shall authorize. 

        DD.
"Subsidiary" means any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation if each of the
corporations (other than the last corporation in the unbroken chain) owns stock possessing at least fifty percent (50%) of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 

        EE.
"Ten Percent Owner" means any Eligible Person owning at the time an Option is granted more than ten percent (10%) of the total combined voting power of
all classes of stock of the Corporation or of an Affiliate. An individual shall, in accordance with Section 424(d) of the Code, be considered to own any voting stock owned (directly or
indirectly) by or for his brothers, sisters, spouse, ancestors and lineal descendants and any voting stock owned (directly or indirectly) by or for a corporation, partnership, estate or trust shall be
considered as being owned proportionately by or for its stockholders, partners or beneficiaries. 

3.    Administration  

        A.    Delegation
of Administration.    The Board shall be the sole Committee of the Plan unless the Board delegates all or any portion of
its authority to administer the Plan to a Committee. To the extent not prohibited by the charter or bylaws of the Corporation, the Board may delegate all or a portion of its
authority to administer the Plan to a Committee of the Board appointed by the Board and constituted in compliance with the applicable Corporation Law. 

        B.    Powers
of the Committee.    Subject to the provisions of the Plan, and in the case of a Committee appointed by the Board, the
specific duties delegated to such Committee, the Committee shall have the authority: 

        (i)
To construe and interpret all provisions of this Plan and all Stock Option Agreements and Stock Award Agreements under this Plan. 

        (ii)
To determine the Fair Market Value of Common Stock. 

        (iii)
To select the Eligible Persons to whom Options or Stock Awards, are granted from time to time hereunder. 

3

 

        (iv)
To determine the number of shares of Common Stock covered by an Option or Stock Award; determine whether an Option shall be an Incentive Stock Option or Nonqualified Stock Option;
and determine such other terms and conditions, not inconsistent with the terms of the Plan, of each such Option or Stock Award. Such terms and conditions include, but are not limited to, the exercise
price of an Option, purchase price of Common Stock subject to a Stock Award, the time or times when Options or Stock Awards may be exercised or Common Stock issued thereunder, the right of the
Corporation to repurchase Common Stock issued pursuant to the exercise of an Option or a Stock Award and other restrictions or limitations (in addition to those contained in the Plan) on the
forfeitability or transferability of Options, Stock Awards or Common Stock issued upon exercise of an Option or pursuant to a Stock Award. Such terms may include conditions which shall be determined
by the Committee and need not be uniform with respect to Participants. 

        (v)
To accelerate the time at which any Option or Stock Award may be exercised, or the time at which a Stock Award or Common Stock issued under the Plan may become transferable or
nonforfeitable. 

        (vi)
To determine whether and under what circumstances an Option may be settled in cash, shares of Common Stock or other property under Section 6.I instead of Common Stock. 

        (vii)
To amend, cancel, extend, renew, accept the surrender of, modify or accelerate the vesting of or lapse of restrictions on all or any portion of an outstanding Option or Stock
Award; and to reduce the exercise price of any Option. Except as specifically permitted by the Plan, the Stock Option Agreement or Stock Award Agreement or as required to comply with applicable law,
regulation or rule, no amendment, cancellation or modification shall, without a Participant's consent, adversely affect any rights of the Participant; provided, however, that an amendment or
modification that may cause an Incentive Stock Option to become a Nonqualified Stock Option shall not be treated as adversely affecting the rights of the Participant. 

        (viii)
To prescribe the form of Stock Option Agreements and Stock Award Agreements; to adopt policies and procedures for the exercise of Options or Stock Awards, including the
satisfaction of withholding obligations; to adopt, amend, and rescind policies and procedures pertaining to the administration of the Plan; and to make all other determinations necessary or advisable
for the administration of this Plan. 

The
express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee; provided that a Committee of the Board may not exercise
any right or power reserved to the Board. Any decision made, or action taken, by the Committee or in connection with the administration of this Plan shall be final, conclusive and binding on all
persons having an interest in the Plan. 

        C.    Administration
When Common Stock is Publicly Traded.    On and following the Listing Date the Committee authorized by the Board to
administer the Plan shall, if so determined by the Board, consist of solely two (2) or more Non-Employee Directors (within the meaning of Rule 16b-3 under the
Exchange Act); provided that the Board may delegate administrative authority with respect to Eligible Persons who are not subject to Section 16 of the Exchange Act to a committee of other than
Non-Employee Directors. 

4.    Eligibility  

        A.    Eligibility
for Awards.    Nonqualified Stock Options and Stock Awards may be granted to any Eligible Person selected by the
Committee. Incentive Stock Options may be granted only to employees of the Corporation or a Parent or Subsidiary. 

4

 

        B.    Eligibility
of Consultants.    A Consultant shall be an Eligible Person only if the offer or sale of the Corporation's securities
would be exempt from registration under Rule 701 under the Securities Act prior to the date the Corporation is required to file reports under Section 13 or 15(d) of the Exchange Act, or
eligible for registration on Form S-8 Registration Statement, on and following the date the Corporation is required to file reports under Section 13 or 15(d) of the Exchange
Act, because, in either case, of the identity and nature of the service provided by such person, unless the Corporation determines that an offer or sale of the Corporation's securities to such person
will satisfy another exemption from the registration under the Securities Act and complies with the securities laws of all other jurisdictions applicable to such offer or sale. 

        C.    Substitution
Awards.    The Committee may make Stock Awards and may grant Options and in substitution for performance shares,
phantom shares, stock awards, stock options, stock appreciation rights or similar awards in connection with a merger, consolidation or acquisition of property or stock. Notwithstanding any provision
of the Plan (other than the maximum number of shares of Common Stock that may be issued under the Plan), the terms of such substituted Stock Awards or Options shall be as the Committee, in its
discretion, determines is appropriate. 

5.    Common Stock Subject to Plan  

        A.    Share
Reserve.    Subject to adjustment as provided in Section 8, the maximum aggregate number of shares of Common Stock
that may be (i) issued under this Plan pursuant to the exercise of Options, (ii) issued pursuant to Stock Bonus Awards and Restricted Stock Awards, and (iii) covered by Stock
Appreciation Rights is                        and shall automatically increase at the beginning of each fiscal year by a number
equal to the lesser of            shares of Common Stock and an amount
determined by the Board. 

        B.    Reversion
of Shares.    If an Option or Stock Award is terminated, expires or becomes unexercisable, in whole or in part, for any
reason, the unissued or unpurchased shares of Common Stock (or shares subject to an unexercised Stock Appreciation Right) which were subject thereto shall become available for future grant under the
Plan. Shares of Common Stock that have been actually issued under the Plan shall not be returned to the share reserve for future grants under the Plan; except that shares of Common Stock issued
pursuant to a Stock Award which are repurchased by the Corporation at the original purchase price of such shares, shall be returned to the share reserve for future grant under the Plan. 

        C.    Source
of Shares.    Common Stock issued under the Plan may be shares of authorized and unissued Common Stock or shares of
previously issued Common Stock that have been reacquired by the Corporation. 

6.    Options  

        A.    Award.    In
accordance with the provisions of Section 4, the Committee will designate each Eligible Person to whom an
Option is to be granted and will specify the number of shares of Common Stock covered by such Option. The Stock Option Agreement shall specify whether the Option is an Incentive Stock Option or
Nonqualified Stock Option, the vesting schedule applicable to such Option and any other terms of such Option. No Option that is intended to be an Incentive Stock Option shall be invalid for failure to
qualify as an Incentive Stock Option. 

        B.    Option
Price.    The exercise price per share for Common Stock subject to an Option shall be determined by the Committee, but shall
comply with the following: 

        (i)
The exercise price per share for Common Stock subject to a Nonqualified Stock Option shall be determined by the Committee. 

5

 

        (ii)
The exercise price per share for Common Stock subject to an Incentive Stock Option: 

	•
	granted
to a Participant who is deemed to be a Ten Percent Owner on the date such option is granted, shall not be less than one hundred ten percent (110%) of
the Fair Market Value on the date of grant.

	•
	granted
to any other Participant, shall not be less than one hundred percent (100%) of the Fair Market Value on the date of grant. 

        C.    Maximum
Option Period.    The maximum period during which an Option may be exercised shall be determined by the Committee on the
date of grant, except that no Option that is intended to be an Incentive Stock Option shall be exercisable after the expiration of ten years from the date such Option was granted. In the case of an
Incentive Stock Option that is granted to a Participant who is or is deemed to be a Ten Percent Owner on the date of grant, such Option shall not be exercisable after the expiration of five years from
the date of grant. The terms of any Option that is an Incentive Stock Option may provide that it is exercisable for a period less than such maximum period. 

        D.    Maximum
Value of Options which are Incentive Stock Options.    To the extent that the aggregate Fair Market Value of the Common
Stock with respect to which Incentive Stock Options granted to any person are exercisable for the first time during any calendar year (under all stock option plans of the Corporation or any of its
Affiliates) exceeds $100,000 (or such other amount provided in Section 422 of the Code), the Options are not Incentive Stock Options. For purposes of this section, the Fair Market Value of the
Common Stock will be determined as of the time the Incentive Stock Option with respect to the Common Stock is granted. This section will be applied by taking Incentive Stock Options into account in
the order in which they are granted. 

        E.    Nontransferability.    Options
granted under this Plan which are intended to be Incentive Stock Options shall be nontransferable
except by will or by the laws of descent and distribution and during the lifetime of the Participant shall be exercisable by only the Participant to whom the Incentive Stock Option is granted. If the
Stock Option Agreement so provides or the Committee so approves, a Nonqualified Stock Option may be transferred by a Participant to the Participant's children, stepchildren, grandchildren, spouse, one
or more trusts for the benefit of such family members or a partnership in which such family members are the only partners; provided, however, that Participant may not receive any consideration for the
transfer. The holder of a Nonqualified Stock Option transferred pursuant to this section shall be bound by the same terms and conditions that governed the Option during the period that it was held by
the Participant. Except to the extent transferability of a Nonqualified Stock Option is provided for in the Stock Option Agreement or is approved by the Committee, during the lifetime of the
Participant to whom the Nonqualified Stock Option is granted, such Option may be exercised only by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject
to, any lien, obligation, or liability of such Participant. 

        F.    Vesting
and Termination of Continuous Service.    Except as provided in a Stock Option Agreement, the following rules shall apply: 

        (i)
Options will vest as provided in the Stock Option Agreement. An Option will be exercisable only to the extent that it is vested on the date of exercise. Vesting of an Option will
cease on the date of the Participant's termination of Continuous Service and the Option will be exercisable only to the extent the Option is vested on the date of termination of Continuous Service. 

        (ii)
If the Participant's termination of Continuous Service is for reason of death or Disability, the right to exercise the Option (to the extent vested) will expire, unless otherwise
specified in the Stock Option Agreement, on the earlier of (i) one (1) year after the date of the Participant's termination of Continuous Service, or (ii) the expiration date
under the terms of the Agreement. 

6

 

Until the expiration date, the Participant's heirs, legatees or legal representative may exercise the Option, except to the extent the Option was previously transferred pursuant to
Section 6.E. 

        (iii)
If the Participant's termination of Continuous Service is an involuntary termination without Cause or a voluntary termination (other than a voluntary termination described in
Section 6.F (iv)), the right to
exercise the Option (to the extent that it is vested) will expire, unless otherwise specified in the Stock Option Agreement, on the earlier of (i) three (3) months after the date of the
Participant's termination of Continuous Service, or (ii) the expiration date under the terms of the Agreement. If the Participant's termination of Continuous Service is an involuntary
termination without Cause or a voluntary termination (other than a voluntary termination described in Section 6.F (iv)) and the Participant dies after his or her termination of
Continuous Service but before the right to exercise the Option has expired, the right to exercise the Option (to the extent vested) shall expire, unless otherwise specified in the Stock Option
Agreement, on the earlier of (i) one (1) year after the date of the Participant's termination of Continuous Service or (ii) the date the Option expires under the terms of the
Stock Option Agreement, and, until expiration, the Participant's heirs, legatees or legal representative may exercise the Option, except to the extent the Option was previously transferred pursuant to
Section 6.E. 

        (iv)
If the Participant's termination of Continuous Service is for Cause or is a voluntary termination at any time after an event which would be grounds for termination of the
Participant's Continuous Service for Cause, the right to exercise the Option shall expire, unless otherwise specified in the Stock Option Agreement, as of the date of the Participant's termination of
Continuous Service. 

        G.    Exercise.    An
Option shall be exercised by completion, execution and delivery of notice (written or electronic) to the
Corporation of the Option which states (i) the Option holder's intent to exercise the Option, (ii) the number of shares of Common Stock with respect to which the Option is being
exercised, (iii) such other representations and agreements as may be required by the Corporation and (iv) the method for satisfying any applicable tax withholding as provided in
Section 9. Such notice of exercise shall be provided on such form or by such method as the Committee may designate, and payment of the exercise price shall be made in accordance with
Section 6.H. Subject to the provisions of this Plan and the applicable Stock Option Agreement, an Option may be exercised to the extent vested in whole at any time or in part from time to time
at such times and in compliance with such requirements as the Committee shall determine. A partial exercise of an Option shall not affect the right to exercise the Option from time to time in
accordance with this Plan and the applicable Stock Option Agreement with respect to the remaining shares subject to the Option. An Option may not be exercised with respect to fractional shares of
Common Stock. 

        H.    Payment.    Unless
otherwise provided by the Stock Option Agreement, payment of the exercise price for an Option shall be made in
cash or a cash equivalent acceptable to the Committee. With the consent of the Committee, payment of all or part of the exercise price of an Option may also be made (i) by surrendering shares
of Common Stock to the Corporation that have been held for at least six (6) months prior to the date of exercise, (ii) with a full-recourse promissory note, (iii) if
the Common Stock is traded on an established securities market, the Committee may approve payment of the exercise price by a broker-dealer or by the Option holder with cash advanced by the
broker-dealer if the exercise notice is accompanied by the Option holder's written irrevocable instructions to deliver the Common Stock acquired upon exercise of the Option to the broker-dealer, or
(iv) any other method acceptable to the Committee. If Common Stock is used to pay all or part of the exercise price, the sum of the cash or cash equivalent and the Fair Market Value (determined
as of the date of exercise) of the shares surrendered must not be less than the Option price of the shares for which the Option is being exercised. If all or part of the exercise price is to be paid
with a full-recourse promissory note, the par value of the Common Stock, if newly issued, shall be paid in cash or cash equivalents. The shares received upon exercise of the Option shall
be pledged as security for payment 

7

 

of the principal amount of the promissory note and interest thereon and the interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to
avoid the imputation of additional interest under the Code. Subject to the foregoing, the Committee (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any)
and other provisions of such note. 

        I.    Buyout
Provisions.    The Committee may at any time offer to buy out an Option previously granted for a payment in cash, shares of
Common Stock or other property. Such buyout offer shall be on such terms and conditions as the Committee shall determine. 

        J.    Stockholder
Rights.    No Participant shall have any rights as a stockholder with respect to shares subject to an Option until the
date of exercise of such Option and the certificate for shares of Common Stock to be received on exercise of such Option has been issued by the Corporation. 

        K.    Disposition
and Stock Certificate Legends for Incentive Stock Option Shares.    A Participant shall notify the Corporation of any
sale or other disposition of Common Stock acquired pursuant to an Incentive Stock Option if such sale or disposition occurs (i) within two years of the grant of an Option or (ii) within
one year of the issuance of the Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Corporation. The Corporation may require that certificates
evidencing shares of Common Stock purchased upon the exercise of Incentive Stock Option issued under the Plan be endorsed with a legend in substantially the following form: 

The
shares evidenced by this certificate may not be sold or transferred prior to            , 20    , in the absence of a written statement from the Corporation to the effect
that the
Corporation is aware of the facts of such sale or transfer. 

        The
blank contained in this legend shall be filled in with the date that is the later of (i) one year and one day after the date of the exercise of such Incentive Stock Option or
(ii) two years and one day after the grant of such Incentive Stock Option. 

7.    Stock Awards  

        A.    Stock
Bonus Awards.    Each Stock Award Agreement for a Stock Bonus Award shall be in such form and shall contain such terms and
conditions as the Committee shall deem appropriate. The terms and
conditions of Stock Award Agreements for Stock Bonus Awards may change from time to time, and the terms and conditions of separate Stock Bonus Awards need not be identical, but each Stock Bonus Award
shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

        (i)    Consideration.    A
Stock Bonus Award may be granted in consideration for past services actually rendered to the Corporation or an
Affiliate for its benefit. 

        (ii)    Vesting.    Shares
of Common Stock granted under the Stock Bonus Award may, but need not, be subject to a vesting schedule and
may, but need not, be subject to a share repurchase option in favor of the Corporation as determined by the Committee. 

        (iii)    Participant's
Termination of Service.    In the event of a Participant's termination of Continuous Service, the Corporation may
reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the Stock Bonus Award. 

        (iv)    Transferability.    Rights
to acquire shares of Common Stock under the Stock Bonus Award shall be transferable by the Participant
only upon such terms and conditions as are set forth in the Stock Award Agreement, as the Committee shall determine in its discretion, so long as Common Stock granted under the Stock Bonus Award
remains subject to the terms of the Stock Award Agreement. 

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        B.    Restricted
Stock Awards.    Each Stock Award Agreement for a Restricted Stock Award shall be in such form and shall contain such
terms and conditions as the Committee shall deem appropriate. The terms and conditions of the Stock Award Agreements for Restricted Stock Awards may change from time to time, and the terms and
conditions of separate Restricted Stock Awards need not be identical, but each Restricted Stock Award shall include (through incorporation of the provisions hereof by references in the agreement or
otherwise) the substance of each of the following provisions: 

        (i)    Purchase
Price.    The purchase price of restricted stock awards shall be determined by the Committee. 

        (ii)    Consideration.    The
purchase price of Common Stock acquired pursuant to the Restricted Stock Award shall be paid either:
(i) in cash at the time of purchase; (ii) at the discretion of the Committee, according to a deferred payment or other similar arrangement with the Participant; or (iii) in any
other form of legal consideration that may be acceptable to the Committee in its discretion; provided, however, that payment of the Common Stock's "par value" shall not be made by deferred payment. 

        (iii)    Vesting.    Shares
of Common Stock acquired under a Restricted Stock Award may, but need not, be subject to a share repurchase
option in favor of the Corporation in accordance with a vesting schedule to be determined by the Committee. 

        (iv)    Participant's
Termination of Service.    In the event of a Participant's termination of Continuous Service, the Corporation may
repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the Stock Award Agreement for
such Restricted Stock Award. 

        (v)    Transferability.    Rights
to acquire shares of Common Stock under a Restricted Stock Award shall be transferable by the
Participant only upon such terms and conditions as are set forth in the Stock Award Agreement for such Restricted Stock Award, as the Committee shall determine in its discretion, so long as Common
Stock granted under the Restricted Stock Award remains subject to the terms of the Stock Award Agreement. 

        C.    Stock
Appreciation Rights.    Each Stock Award Agreement for Stock Appreciation Rights shall be in such form and shall contain such
terms and conditions as the Committee shall deem appropriate. The terms and conditions of Stock Appreciation Rights may change from time to time, and the terms and conditions of separate Stock
Appreciation Rights need not be identical, but each Stock Appreciation Right shall include (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions: 

        (i)    Benefit
Provided.    Each Stock Appreciation Right shall provide the Participant with the right to receive payment in cash or
shares of Common Stock having a Fair Market Value, as designated in the Stock Award Agreement for such Stock Appreciation Rights, of an amount equal to the difference between the Fair Market Value of
the Common Stock on the date of grant of such award and the Fair Market Value of the Common Stock on the date of exercise of such Stock Appreciation Right. 

        (ii)    Tandem
Awards.    Stock Appreciation Rights may be granted either alone or in tandem with other awards, including Options, under
the Plan. 

        (iii)    Vesting.    The
Stock Award Agreement for a Stock Appreciation Right shall provide the vesting schedule applicable to such award
and may, but need not, provide that shares of Common Stock acquired upon exercising a Stock Appreciation Right are subject to a repurchase option in favor of the Corporation. 

        (iv)    Participant's
Termination of Service.    In the event of a Participant's termination of Continuous Service, the Corporation may
repurchase or otherwise reacquire any or all of the 

9

 

shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the Stock Appreciation Right. 

        (v)    Transferability.    Rights
to acquire cash or shares of Common Stock under a Stock Appreciation Right shall be transferable by the
Participant only upon such terms and conditions as are set forth in the agreement, as the Committee shall determine in its discretion, so long as Common Stock received under the Stock Appreciation
Right remains subject to the terms of the Stock Award Agreement. 

8.    Changes in Capital Structure  

        A.    No
Limitations of Rights.    The existence of outstanding Options or Stock Awards shall not affect in any way the right or power of
the Corporation or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation's capital structure or its business, or any
merger or consolidation of the Corporation, or any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or the dissolution
or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 

        B.    Changes
in Capitalization.    If the Corporation shall effect a subdivision or consolidation of shares or other capital
readjustment, the payment of a stock dividend, or other increase or reduction of the number of shares of the Common Stock outstanding, without receiving consideration therefore in money, services or
property, then (i) the number, class, and per share price of shares of Common Stock subject to outstanding Options and Stock Awards hereunder and (ii) the number and class of shares then
reserved for issuance under the Plan and the maximum number of shares for which awards may be granted to a Participant during a specified time period shall be appropriately and proportionately
adjusted. The conversion of convertible securities of the Corporation shall not be treated as effected "without receiving consideration." The Committee shall make such adjustments, and its
determinations shall be final, binding and conclusive. 

        C.    Merger,
Consolidation or Asset Sale.    If the Corporation is merged or consolidated with another entity or sells or otherwise
disposes of substantially all of its assets to another company while Options or Stock Awards remain outstanding under the Plan, unless provisions are made in connection with such transaction for the
continuance of the Plan and/or the assumption or substitution of such Options or Stock Awards with new options or stock awards covering the stock of the successor company, or parent or subsidiary
thereof, with appropriate adjustments as to the number and kind of shares and prices, then all outstanding Options and Stock Awards which have not been continued, assumed or for which a substituted
award has not been granted shall, whether or not vested or then exercisable, unless
otherwise specified in the Stock Option Agreement, terminate immediately as of the effective date of any such merger, consolidation or sale. 

        D.    Limitation
on Adjustment.    Except as previously expressly provided, neither the issuance by the Corporation of shares of stock of
any class, or securities convertible into shares of stock of any class, for cash or property, or for labor or services either upon direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Corporation convertible into such shares or other securities, nor the increase or decrease of the number of authorized shares of stock, nor
the addition or deletion of classes of stock, shall affect, and no adjustment by reason thereof shall be made with respect to, the number, class or price of shares of Common Stock then subject to
outstanding Options or Stock Awards. 

10

 

9.    Withholding of Taxes  

        The Corporation or an Affiliate shall have the right, before any certificate for any Common Stock is delivered, to deduct or withhold from any payment owed to a
Participant any amount that is necessary in order to satisfy any withholding requirement that the Corporation or Affiliate in good faith believes is imposed upon it in connection with Federal, state,
or local taxes, including transfer taxes, as a result of the issuance of, or lapse of restrictions on, such Common Stock, or otherwise require such Participant to make provision for payment of any
such withholding amount. Subject to such conditions as may be established by the Committee, the Committee may permit a Participant to (i) have Common Stock otherwise issuable under an Option or
Stock Award withheld to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income, (ii) tender back to the Corporation shares of Common Stock
received pursuant to an Option or Stock Award to the extent necessary to comply with minimum statutory withholding rate requirements for supplemental income, (iii) deliver to the Corporation
previously acquired Common Stock, (iv) have funds withheld from payments of wages, salary or other cash compensation due the Participant, or (v) pay the Corporation or its Affiliate in
cash, in order to satisfy part or all of the obligations for any taxes required to be withheld or otherwise deducted and paid by the Corporation or its Affiliate with respect to the Option or Stock
Award. 

10.  Compliance with Law and Approval of Regulatory Bodies  

        A.    General
Requirements.    No Option or Stock Award shall be exercisable, no Common Stock shall be issued, no certificates for shares
of Common Stock shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation,
withholding tax requirements), any listing agreement to which the
Corporation is a party, and the rules of all domestic stock exchanges or quotation systems on which the Corporation's shares may be listed. The Corporation shall have the right to rely on an opinion
of its counsel as to such compliance. Any share certificate issued to evidence Common Stock when a Stock Award is granted or for which an Option or Stock Award is exercised may bear such legends and
statements as the Committee may deem advisable to assure compliance with federal and state laws and regulations. No Option or Stock Award shall be exercisable, no Stock Award shall be granted, no
Common Stock shall be issued, no certificate for shares shall be delivered, and no payment shall be made under this Plan until the Corporation has obtained such consent or approval as the Committee
may deem advisable from regulatory bodies having jurisdiction over such matters. 

        B.    Participant
Representations.    The Committee may require that a Participant, as a condition to receipt or exercise of a particular
award, execute and deliver to the Corporation a written statement, in form satisfactory to the Committee, in which the Participant represents and warrants that the shares are being acquired for such
person's own account, for investment only and not with a view to the resale or distribution thereof. The Participant shall, at the request of the Committee, be required to represent and warrant in
writing that any subsequent resale or distribution of shares of Common Stock by the Participant shall be made only pursuant to either (i) a registration statement on an appropriate form under
the Securities Act of 1933, which registration statement has become effective and is current with regard to the shares being sold, or (ii) a specific exemption from the registration
requirements of the Securities Act of 1933, but in claiming such exemption the Participant shall, prior to any offer of sale or sale of such shares, obtain a prior favorable written opinion of
counsel, in form and substance satisfactory to counsel for the Corporation, as to the application of such exemption thereto. 

11.  General Provisions  

        A.    Effect
on Employment and Service.    Neither the adoption of this Plan, its operation, nor any documents describing or referring to
this Plan (or any part thereof) shall (i) confer upon any individual any right to continue in the employ or service of the Corporation or an Affiliate, (ii) in any way affect 

11

 

any right and power of the Corporation or an Affiliate to change an individual's duties or terminate the employment or service of any individual at any time with or without assigning a reason
therefor or (iii) except to the extent the Committee grants an Option or Stock Award to such individual, confer on any individual the right to participate in the benefits of the Plan. 

        B.    Use
of Proceeds.    The proceeds received by the Corporation from the sale of Common Stock pursuant to this Plan shall be used for
general corporate purposes. 

        C.    Unfunded
Plan.    The Plan, insofar as it provides for grants, shall be unfunded, and the Corporation shall not be required to
segregate any assets that may at any time be represented by grants under this
Plan. Any liability of the Corporation to any person with respect to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such
obligation of the Corporation shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Corporation. 

        D.    Rules
of Construction.    Headings are given to the Sections of this Plan solely as a convenience to facilitate reference. The
reference to any statute, regulation, or other provision of law shall be construed to refer to any amendment to or successor of such provision of law. 

        E.    Choice
of Law.    The Plan and all Stock Option Agreements and Stock Award Agreements entered into under the Plan shall be
interpreted under the Corporation Law excluding (to the greatest extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction other than the Corporation
Law. 

12.  Amendment and Termination  

        The Board may amend or terminate this Plan from time to time; provided, however, stockholder approval shall be required for any amendment that
(i) increases the aggregate number of shares of Common Stock that may be issued under the Plan, except as contemplated by Section 5A or 8B or (ii) changes the class of employees
eligible to receive Incentive Stock Options. Except as specifically permitted by the Plan, Stock Option Agreement or Stock Award Agreement or as required to comply with applicable law, regulation or
rule, no amendment shall, without a Participant's consent, adversely affect any rights of such Participant under any Option or Stock Award outstanding at the time such amendment is made; provided,
however, that an amendment that may cause an Incentive Stock Option to become a Nonqualified Stock Option shall not be treated as adversely affecting the rights of the Participant. Any increase in the
aggregate number of shares of Common Stock available under Plan, except as contemplated by Section 5A or 8B or change in class of employees eligible to receive Incentive Stock Options shall be
approved by the stockholders of the Corporation within twelve (12) months of the date such amendment is adopted by the Board. 

13.  Effective Date of Plan, Duration of Plan  

        A. The Plan became effective as of                        , 2002
upon adoption by the Board, subject to approval within twelve (12) months by the stockholders
holding of a majority of the shares of entitled to vote thereon. Unless and until the plan has been approved the stockholders of the Corporation, no Option or Stock Award may be exercised (or Stock
Bonus Award granted). In the event that the stockholders of the Corporation shall not approve the Plan within such twelve (12) month period, the Plan and any previously granted Option or Stock
Award shall terminate. 

        B.
Unless previously terminated, the Plan will terminate ten (10) years after the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan
is approved by the stockholders, except that Options and Stock Awards that are granted under the Plan prior to its termination will continue to 

12

 

be administered under the terms of the Plan until the Options and Stock Awards terminate or are exercised. 

	 	 	SI INTERNATIONAL, INC.
	

 	
 	

By:	

	 	 	Name:	

	 	 	Title:	

	 	 	Date:	

13

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FORM OF SI INTERNATIONAL, INC. 2002 STOCK INCENTIVE PLAN

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