Document:

exv10w17

Exhibit 10.17

Prepared by and return to:

James S. Groh, Esq.

HOLLAND & KNIGHT LLP 

50 North. Laura Street

Suite 3900

Jacksonville, Florida 32202

FIRST MORTGAGE, ASSIGNMENT OF RENTS,

SECURITY AGREEMENT AND FIXTURE FILING

     THIS FIRST MORTGAGE, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE
FILING (the “Mortgage”) is executed as of June 13, 2008, by SPECTRUM SCIENCES &
SOFTWARE, INC., a Florida corporation, whose address is 2677 Prosperity Avenue,
Suite 300, Fairfax, Virginia 22031 (the “Mortgagor”), which term as used herein
in every instance shall include the Mortgagor’s successors, legal
representatives and assigns, including all subsequent grantees, either
voluntary by act of the parties or involuntary by operation of law, to SUSOTT
FAMILY LIMITED PARTNERSHIP, a California limited partnership, whose address is
4267 Marina City Drive, Apt. #1106, Marina Del Rey, CA 90292 (the “Mortgagee”),
which term as used herein in every instance shall include the Mortgagee’s
successors, legal representatives and assigns, including all subsequent
assignees, either voluntary by act of the parties or involuntary by operation
of law.

WITNESSETH:

     THAT for diverse good and valuable considerations, and also to secure the
payment of the aggregate sum of money named in the Note as hereinafter defined,
together with interest thereon, and all other sums of money secured hereby as
hereinafter provided, the Mortgagor does hereby mortgage, encumber and lien
unto the Mortgagee the land of which the Mortgagor is now seized and in actual
possession, in the County of Okaloosa County, State of Florida, described in
Exhibit A attached hereto and made a part hereof (hereinafter referred to as
the “Land”), together with all and singular the improvements, tenements,
hereditaments, easements and appurtenances thereunto belonging, or in anyway
appertaining, and the rents, issues, and profits thereof, and also all the
estate, right, title, interest and all claims and demands whatsoever, as well
in law as in equity, of said Mortgagor in and to the same, and every part and
parcel thereof, and also specifically but not by way of limitation all gas and
electric fixtures, water and drainage pumps, pipes, component parts and
materials located upon the Land, and which are now or may hereafter pertain to
or be used with, in or on said premises, even though they be detached or
detachable, are and shall be deemed to be fixtures and accessories to the
freehold and a part of the realty (the Land and all other property described in
this paragraph is hereinafter collectively referred to as the “Mortgaged
Property”).

     The said Mortgagor hereby covenants with the said Mortgagee that the said
Mortgagor is indefeasibly seized with the absolute and fee simple title to the
Mortgaged Property, and has full power and lawful authority to mortgage,
encumber and lien the same; that the Mortgaged Property is free and discharged
from all liens, encumbrances and claims of any kind, including taxes and
assessments, except for the subordinate lien of the Second Mortgage, as such
term is defined in Section 15 herein; and that the Mortgagor will make at
Mortgagor’s expense and at no expense to Mortgagee, such other and further

 

 

assurances to perfect the lien on said Mortgaged Property, fixtures and personal property in the
Mortgage as may hereafter be required.

     NOW, THEREFORE, the conditions of this Mortgage are such that if the Mortgagor shall well and
truly pay unto the Mortgagee the indebtedness evidenced by that certain Commercial Note (the
“Note”) of even date herewith, made by the Mortgagor and payable to the Mortgagee in the principal
sum of ONE MILLION AND 00/100 DOLLARS ($1,000,000.00), the final payment of which is due upon the
earlier of (i) June 13, 2009, subject to one (1) six (6) month extension option pursuant to the
Note, or (ii) the sale of the Mortgaged Property, together with any note or notes hereafter
executed by the Mortgagor herein by and in accordance with Section 13 of this Mortgage as
hereinafter set forth and secured by the lien of this Mortgage, together with interest as therein
stated, and shall perform, comply with and abide by each and every one of the stipulations,
agreements, conditions and covenants contained and set forth in this Mortgage and in the Note
secured hereby, then this Mortgage and the estate hereby created shall cease and be null and void.

     AND the Mortgagor does hereby covenant and agree:

     1. To perform, comply with and abide by each and very one of the stipulations, agreements,
conditions and covenants contained and set forth in said Note or Notes and this Mortgage.

     2. To pay the indebtedness secured by this Mortgage and according to the true tenor and
effect of the Note or of any renewal thereof, promptly on the day or days the same become due.

     3. To pay, before becoming delinquent, all obligations, encumbrances, taxes, assessments,
sidewalk paving, sanitary and other assessments, levies or liens, now or hereafter levied or
imposed upon or against the Mortgaged Property, and to exhibit to the Mortgagee before such taxes,
assessments, liens and encumbrances become delinquent the official receipt for payment thereof,
and if the same or any part thereof be not paid before becoming delinquent the Mortgagee may at
any time pay the same with accrued interest and charges, if any, without waiving or affecting
Mortgagee’s option to foreclosure this Mortgage, or any right hereunder, and every payment so made
shall bear interest from the date thereof at the maximum rate permitted by law, and all such
payments with interest shall be secured by the lien hereof.

     4. That in the event a suit is instituted to foreclose this Mortgage, the Mortgagee shall be
entitled to apply at any time during such foreclosure suit to the court having jurisdiction thereof
for the appointment of a receiver of all and singular the Mortgaged Property, and of all rents,
income, profits, issues and revenues thereof, from whatsoever source derived; and thereupon it is
hereby expressly covenanted and agreed that the court shall forthwith appoint such receiver with
the usual powers and duties of receivers in like cases; and said appointment shall be made by the
court as a matter of strict right to the Mortgagee, and without reference to the adequacy or
inadequacy of the value of the Mortgaged Property, or to the solvency or insolvency of the
Mortgagor or any other party defendant to such suit. The Mortgagor hereby specifically waives the
right to object to the appointment of a receiver as aforesaid and hereby expressly consents that
such appointment shall be made as a admitted equity and as a matter of absolute right to the
Mortgagee.

     5. That if any proceedings should be instituted against the Mortgaged Property, upon any
other lien or claim whether superior or junior (if permitted) to the lien of this Mortgage, then
the Mortgagee may declare the Note and the indebtedness secured hereby due and payable forthwith
and may at its option proceed to foreclose this Mortgage.

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     6. To pay all and singular the costs, fees, charges and expenses of every kind found to be
convenient or expedient in connection with any suit for the foreclosure of this Mortgage, and also
including, whether the Mortgagee is obligated to pay same or not, reasonable attorney’s fees
incurred or expended at any time by the Mortgagee because of the failure of the Mortgagor to
perform, comply with and abide by all or any of the covenants, conditions and stipulations of the
Note, or this Mortgage, in the foreclosure of this Mortgage and in collecting the amount secured
hereby with or without legal proceedings, and to reimburse the Mortgagee for every payment made or
incurred for any such purpose with interest from date of every such payment at the maximum rate
permitted by law; such payments and obligations, with interest thereon as aforesaid, shall be
secured by the lien hereof.

     7. To keep the improvements now or hereafter constructed on the Land insured against loss or
damage by fire, extended coverage and other perils, and flood insurance if the Land is in a flood
zone area, in a sum not less than their full insurable value, at the cost and expense of the
Mortgagor, by a company or companies reasonably acceptable to the Mortgagee, and such policy or
policies of insurance shall name Mortgagee as the mortgage holder. The term “full insurable value”
means one hundred percent (100%) of the actual replacement cost of the Property (excluding
foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items).

     8. To permit, commit or suffer no waste and to maintain the improvements on the Land at all
times in a state of good repair and condition; and to do or permit to be done to said premises
nothing that will alter or change the use and character of the Mortgaged Property or in any way
impair or weaken the security of this Mortgage.

     9. That no waiver of any covenant herein or in the obligation secured hereby shall at any
time hereafter be held to be a waiver of any of the other terms hereof or of the note secured
hereby and further no such waiver shall be deemed to be a continuing waiver.

     10. That if the Mortgagor shall fail, neglect or refuse fully and promptly to pay the amounts
required to be paid by the Note hereby secured or the interest therein specified or any of the
sums of money herein referred to or hereby secured, or otherwise duly, fully and promptly perform,
execute, comply with and abide by each, every or any of the covenants, conditions or stipulations
of this Mortgage or the Note hereby secured (each of the foregoing being referred to as an “event
of default”), then Mortgagee may at any time thereafter provide Mortgagor with written notice of
such default. If Mortgagor fails to cure such default within fifteen (15) days after Mortgagee
delivers such notice, then the said aggregate sum mentioned in the Note, less previous payments,
if any, and any and all sums mentioned herein or secured hereby shall become due and payable
forthwith or thereafter at the continuing option of the Mortgagee as fully and completely as if
said aggregate sums were originally stipulated to be paid at such time, anything in the Notes or
herein to the contrary notwithstanding, and the Mortgagee shall be entitled thereupon or
thereafter without notice or demand to institute suit at law or in equity to enforce the rights of
the Mortgagee hereunder or under the Note.

     11. That in the event Mortgagor shall (a) consent to the appointment of a receiver, trustee or
liquidator of all or a substantial part of Mortgagor’s assets, or (b) be adjudicated a bankrupt or
insolvent, or file a voluntary petition in bankruptcy, or admit in writing its inability to pay its
debts as they become due, or (c) make a general assignment for the benefit of creditors, or (d)
file a petition or answer seeking reorganization or arrangement with creditors, or to take
advantage of any insolvency law, or (e) file an answer admitting the material allegations of a
petition filed against the Mortgagor in any bankruptcy, reorganization or insolvency proceeding, or
(f) take action to effect any of the foregoing, or (g) any order, judgment or decree shall be
entered upon an application of a creditor of Mortgagor by a court of competent jurisdiction
approving a petition seeking appointment of a receiver or trustee of all or a substantial part of
the Mortgagor’s assets and such order, judgment or decree shall continue unstayed and

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in effect for any period of thirty (30) consecutive days, the Mortgagee may declare the Note
hereby secured forthwith due and payable, whereupon the principal of and the interest accrued on
the Note and all other sums hereby secured shall become forthwith due and payable as if all of the
said sums of money were originally stipulated to be paid on such day; and thereupon the Mortgagee
without notice or demand may prosecute a suit at law and/or in equity as if all monies secured
hereby had matured prior to its institution.

     12. That the Mortgagee or any person authorized by the Mortgagee shall have the right, upon
at least one (1) business day’s notice to the Mortgagor, to enter upon and inspect the Mortgaged
Property.

     13. That any sum or sums which may be loaned or advanced by the Mortgagee to the Mortgagor at
any time within twenty (20) years from the date of this Mortgage, together with interest thereon
at the rate agreed upon at the time of such loan or advance, shall be equally secured with and
have the same priority as the original indebtedness and be subject to all the terms and provisions
of this Mortgage; provided, that the aggregate amount of principal outstanding at any time shall
not exceed an amount equal to two hundred percent (200%) of the principal amount originally
secured hereby.

     14. That the Mortgagor will comply with all building, zoning, environmental, fire and health
regulations now or hereafter imposed by governmental authority and will comply with all deed
restrictions, declarations of restrictions and plat restrictions which may be applicable to the
premises.

     15. That Mortgagor will not permit any other liens or encumbrances whatsoever, including but
not limited to the lien of any mortgage (other than the lien of that certain Second Mortgage,
Assignment of Rents, Security Agreement and Fixture Filing of even date herewith, granted by
Mortgagor to Daryl K. Home, securing an original principal indebtedness of $500,000.00 (the
“Second Mortgage”)), to be filed against the Mortgaged Property, and if any such liens are filed,
whether paramount or subordinate to this Mortgage, Mortgagor will have or cause to be had said
liens or encumbrances to be discharged immediately or else the entire principal sum secured hereby
shall, at the sole option of the Mortgagee, become immediately due and payable.

     16. If intangible tax, documentary stamps or any other tax shall be levied or assessed upon
this Mortgage and/or the Note secured hereby, the Mortgagor agrees to promptly pay upon demand all
such tax or taxes.

     17. Upon any sale, transfer or conveyance of the Mortgaged Property herein described or any
part thereof, or any interest therein, including any security interest in the Mortgaged Property,
whether voluntarily or involuntarily and covered by this Mortgage, to any person, firm, or
corporation, not previously approved in writing by the holder of this Mortgage, the Mortgagee or
holder shall have the right to accelerate the maturity of this Mortgage as though it were due and
payable on the day of such transfer and to demand payment in full of the said Mortgage amount or
any unpaid balance thereof, and to exercise all the rights and remedies herein or by law reserved
to said Mortgagee the same as in any event of default hereunder, anything in the Note or herein to
the contrary notwithstanding. The granting of the loan evidenced by the Note hereinabove described
and secured hereby is given by Mortgagee in reliance on the Mortgagor herein being and remaining
fee simple title holder of the property encumbered hereby.

     18. That in the event of foreclosure of this Mortgage or other transfer of title to the
Mortgaged Property, all right, title and interest of the Mortgagor in and to any insurance
policies then in force, including all premiums thereon paid in advance, and, together with all
deposits and advance payments for utility service, in connection with the operation of the
Mortgaged Property together with any and all other deposits given or fees paid by Mortgagor, shall
pass to the purchaser or grantee.

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     19. That Mortgagor hereby grants to Mortgagee, its successors and assigns, a security
interest in all fixtures, goods and chattels now or hereafter owned by Mortgagor and now or
hereafter located upon or used in connection with the construction or operation of the Mortgaged
Property or any improvements thereon, including but not limited to all uninstalled materials,
equipment or fixtures and all stoves, refrigerators, dishwashers, disposals, water heaters,
heating and air conditioning units, incinerators, carpeting, drapes and all other goods and
articles of personal property of any kind or description and all replacements thereof and
additions thereto. This indenture constitutes a Security Agreement and Fixture Filing with respect
to said fixtures, goods and chattels covered hereby, together with all proceeds thereof, in
accordance with the Uniform Commercial Code. The Mortgagor’s address is 2677 Prosperity Avenue,
Suite 300, Fairfax, Virginia 22031, and its corporate charter number is GO3833. The Mortgagee’s
address is 4267 Marina City Drive, Apt. #1106, Marina Del Rey, CA 90292.

     20. That all notices, demands and requests required or permitted to be given hereunder or by
law shall be deemed delivered when deposited in the United States mail, the full postage prepaid
thereon, addressed to Mortgagor or Mortgagee at their respective addresses first shown above in
this Mortgage. Any change in address of either Mortgagor or Mortgagee for the giving of notice
hereunder shall not become effective against the other party until written advice of such change
shall have been received by the other party.

     21. Whenever and wherever the context so requires or admits herein, the use of the singular
shall also denote the plural, the use of the masculine shall also denote the feminine, and
reference to natural persons shall also refer to artificial persons, and vice-versa.

     IN WITNESS WHEREOF, the Mortgagor has executed these presents under seal the day and year
first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Signed, sealed and delivered in the presence of:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Robert L. Suthard	 	 	 	Spectrum Sciences & Software, Inc.,	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name: Robert L. Suthard, Jr.	 	 	 	a Florida corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Marcella J. Connors	 	 	 	By:	 	/s/ John Krobath	 	 
	 	 	 	 	 	 	 	 	 
	Name: Marcella J. Connors

	 	 	 	 	 	Name:
	 	John Krobath	 	 
	 

	 	 	 	 	 	Title:
	 	CFO	 	 

[SEAL]

5

 

	 	 	 	 	 
	State of VIRGINIA

	 	)	 
	 

	 	: ss.

	County of FAIRFAX

	 	)	 

The foregoing instrument was acknowledged before me this 2ND DAY of JULY, 2008, by
JOHN KROBATH as CFO of Spectrum Sciences & Software, Inc., a Florida corporation, on behalf of the corporation. He/she is personally known to me or
has produced VP DRIVERS LICENSE as identification.

(NOTARY SEAL)

	 	 	 	 	 
	[SEAL]

	 	/s/ Natalie A. Fehervari
	 	 
	 

	 	Name: NATALIE A. FEHERVARI
	 
	 

	 	Notary Public, State of VIRGINIA	 	 
	 

	 	Commission No. 344126
	 	 
	 

	 	My Commission expires: 3/31/2012
	 	 

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EXHIBIT A

The Land

VER-VAL PROPERTY:

COMMENCE AT 4X4” CONCRETE MONUMENT MARKER ON THE NORTHEAST CORNER SECTION 17 FOR THE POINT OF
REFERENCE; THENCE PROCEED NORTH 87° 27’ 20” WEST ALONG THE NORTH LINE OF SAID SECTION A DISTANCE OF
425 FEET; THENCE SOUTH 2° 37’ 00” WEST A. DISTANCE OF 399.46 FEET TO POB OF LAND TO BE DESCRIBED,
THENCE CONTINUE SOUTH 2° 37’ 00” WEST A DISTANCE OF 250 FEET, THENCE NORTH 87° 23’ 00” WEST A
DISTANCE OF 390.71 FEET TO A POINT ON EAST RIGHT OF WAY LINE OF HILL AVENUE (100’ R/W) SAID RIGHT
OF WAY LINE BEING A CURVE OF RADIUS 4708.28 FEET CONCAVE TO WEST; THENCE PROCEED ALONG SAID CURVE A
DISTANCE OF 41.72 FEET WITH A CHORD BEARING OF NORTH 1° 30’ 08” EAST AND CHORD DISTANCE OF 41.72
FEET TO POINT OF CURVATURE OF SAID CURVE; THENCE CONTINUE ALONG SAID RIGHT OF WAY LINE NORTH 1° 15’
20” EAST A DISTANCE OF 208.35 FEET; THENCE SOUTH 87° 23’ 00” EAST A DISTANCE OF 396.47 FEET TO POB.
BEARINGS AS SHOWN HAVE BEEN PROJECTED FROM A BEARING OF NORTH 87° 27’ 20” WEST AS ESTABLISHED ALONG
NORTH LINE OF SECTION 17, NORTHEAST QUARTER OF SECTION 17, TOWNSHIP 2 SOUTH, RANGE 24 WEST,
OKALOOSA COUNTY, FLORIDA.

PARCEL 1:

THAT PART OF THE NORTHEAST QUARTER OF SECTION 17, TOWNSHIP 2 SOUTH, RANGE 24 WEST IN THE CITY OF
FORT WALTON BEACH INDUSTRIAL PARK, OKALOOSA COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:

COMMENCE AT THE 4 INCH BY 4 INCH CONCRETE MONUMENT MARKING THE NORTHEAST CORNER OF SAID SECTION 17
FOR THE POINT OF REFERENCE; THENCE PROCEED NORTH 87° 27’ 20” WEST ALONG THE NORTH LINE OF SAID
SECTION A DISTANCE OF 80.00 FEET TO A POINT ON THE WEST RIGHT OF WAY OF BLAKE AVENUE (80’ R/W);
THENCE SOUTH 02° 37’ 00” WEST ALONG SAID WEST RIGHT OF WAY LINE A DISTANCE OF 399.90 FEET TO THE
POINT OF BEGINNING OF THE LAND TO BE DESCRIBED; THENCE CONTINUE SOUTH 02° 37’ 00” WEST ALONG SAID
WEST RIGHT OF WAY LINE A DISTANCE OF 250.00 FEET; THENCE NORTH 87° 23’ 00” WEST A DISTANCE OF
345.00 FEET; THENCE NORTH 02° 37’ 00” EAST A DISTANCE OF 250.00 FEET; THENCE SOUTH 87° 23’ 00”
EAST A DISTANCE OF 345.00 FEET TO THE POINT OF BEGINNING.

PARCEL 2:

THAT PART OF THE NORTHEAST QUARTER OF SECTION 17, TOWNSHIP 2 SOUTH, RANGE 24 WEST IN THE CITY OF
FORT WALTON BEACH INDUSTRIAL PARK, OKALOOSA COUNTY, FLORIDA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:

COMMENCE AT THE 4 INCH BY 4 INCH CONCRETE MONUMENT MARKING THE NORTHEAST CORNER OF SAID SECTION 17
FOR THE POINT OF REFERENCE; THENCE PROCEED NORTH 87° 27’ 20” WEST ALONG THE NORTH LINE OF SAID
SECTION, A DISTANCE OF 80.00 FEET TO A POINT ON THE WEST RIGHT OF WAY OF BLAKE AVENUE (80’ R/W) AND
TO THE POINT OF BEGINNING OF THE LAND TO BE DESCRIBED; THENCE CONTINUE NORTH 87° 27’ 20” WEST ALONG
THE NORTH LINE OF SAID SECTION A DISTANCE OF 345.00 FEET; THENCE SOUTH 02° 37’ 00” WEST A DISTANCE
OF 399.46 FEET; THENCE SOUTH 87° 23’ 00” EAST A DISTANCE OF 345.00 FEET TO A POINT ON THE WEST
RIGHT OF WAY OF BLAKE AVENUE; THENCE NORTH 02° 37’ 00” EAST ALONG SAID WEST RIGHT OF WAY A
DISTANCE OF 399.90 FEET TO THE POINT OF BEGINNING. SURVEYOR’S NOTE: THE BEARINGS AS SHOWN HEREIN

 

 

EXHIBIT A

The Land

HAVE BEEN PROJECTED FROM A BEARING OF NORTH 87° 27’ 20” WEST AS ESTABLISHED ALONG THE NORTH LINE OF
SECTION 17.exv10w18

Exhibit 10.18

EMPLOYMENT AGREEMENT

     This
Employment Agreement (this “Agreement”), effective as of the 1st day of
October, 2008, by and between Horne International, Inc., a Delaware
corporation (the “Company”),
and John Krobath (the “Executive”).

     Whereas, the Company and the Executive have determined that it is in their respective best
interests to enter into this written Employment Agreement and it is the intention of the parties
to perform pursuant to this Employment Agreement and to further repudiate and void all previous
Employment Agreements, written and oral, which may have been entered into by the parties;

     Now
Therefore, in consideration of the mutual covenants and agreements herein contained, the
parties hereto covenant and agree as follows:

     1. Recital. The foregoing recital is made a part of this Agreement.

     2. No Prior Obligations. The Executive represents and warrants to the Company that the
Executive is free to accept employment hereunder and that the Executive has no prior or other
obligations or
commitments of any kind to anyone that would in any way hinder or interfere with the
Executive’s
acceptance of, or the full uninhibited and faithful performance of, the Executive’s employment
hereunder or
the best exercise of the Executive’s efforts as an employee of the Company.

     3. Employment. The Company hereby employs the Executive and the Executive hereby
accepts employment with the Company, upon the terms and conditions herein set forth. During
the term of
this Agreement, the Executive shall perform such duties as are required by the Company and
this Agreement
and shall devote his entire business time (except vacations and any other permitted leave
time), effort,
attention and ability, with undivided loyalty, to the performance of such duties.

     4. Term. The term of this Agreement shall be one (1) year beginning on the effective
date
stated herein. This Agreement shall automatically renew for successive one (1) year
terms(s) unless
otherwise terminated by either party, in writing, not later than thirty (30) days prior to the
expiration of the
initial term or any renewal term thereafter.

     5. Duties. During the term of this Agreement, the Executive shall as the Chief
Financial
Officer of Horne International, Inc.

          (a) As Chief Financial Officer for Horne International, Inc. the Executive’s duties shall
involve work associated with managing and supervising corporate accounting and budgeting
functions
including cash flow, audits and certifying expenditures. Executive shall coordinate and
cooperate with
internal and external auditors and shall cooperate in the preparation of required Securities
and Exchange
Commission (SEC) and other regulatory agency reports and filings. Further, Executive shall
manage and
supervise the accounting and finance staff.

          (b) The Executive shall adhere to all of the rules and regulations of the Company which are
presently in force or which may be established hereafter by the Company with respect to the
conduct of those
employees under the direction and supervision of the Executive. The Executive shall also
follow the
directions of the Chief Executive Officer, Darryl Horne, with respect to his duties.

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

 

 

     6. AT WILL EMPLOYMENT. The employment relationship set forth herein shall be an “at
will” employment relationship and not employment for a defined term. Thus, either Employer or
Executive
can terminate the employment relationship at any time.

     7. Compensation.

          (a) Except as otherwise provided in this Agreement, the Company shall pay the
Executive, and the Executive shall accept during the term of this Agreement, for all services
to be rendered
by the Executive, an annual base salary of One Hundred Fifty Eight Thousand Six Hundred Twenty
Five
Dollars ($158,625) (the “Salary”) payable at least monthly or on a more frequent basis as the
Company shall
determine. The Company shall review Executive’s base salary on an annual basis and any
change in
Executive’s annual salary shall be discretionary with the Company and shall be based upon
Executive’s
individual performance by meeting or not meeting goals and objectives.

          (b) Any amounts paid to the Executive hereunder shall be less such sums as may be
required to be deducted or withheld under the provisions of any federal, state or local law.

          (c) The Executive is intended to be compensated as an employee of the Company and
as such is to receive a W-2 wage for and the status of an employee and the Company shall
deduct federal and
state withholding and social security taxes as required.

          (d) The Company shall pay or reimburse the Executive for all reasonable out-of-pocket
expenses actually incurred by Executive performing services hereunder, provided that the
Executive properly
accounts for such expenses in accordance with the Company’s policies.

     8. CASH
BONUS: In addition to the Salary, the Company may pay to the Executive a
bonus (the “Cash Bonus”) in an amount which, for any twelve (12) month period, may be up to but
not greater than fifty percent (50%) of the Executive’s base annual salary as stated herein,
provided that the Executive is an employee in good standing of the Company on the date the cash
bonus is paid as determined by the Company, in its sole and absolute discretion, and based upon
the Executive’s individual performance by meeting goals and objectives. Executive’s goals and
objectives shall be defined and agreed upon by the parties not later than thirty (30) days from
the effective date of this Agreement. The Company shall during the initial six months of this
Agreement conduct a review of Executive’s individual performance on a date not later than three
(3) months from the effective date of this Agreement and again at six months from the effective
date and shall make payment of any Cash Bonus earned by the Executive not later than thirty (30)
days from the date of each of the performance review. The Company shall thereafter include the
Executive in the Company’s annual Cash Bonus cycle.

     9. ADDITIONAL COMPENSATION UPON SEVERANCE: In addition to, and not in lieu of, the
Salary and Benefits reserved herein by the Executive, the Company shall pay to the Executive or
his estate in the event of a termination of the Executive’s employment for any reason, other than
for just cause, within ninety (90) days next after the involuntary termination without just cause
of his employment by the Company, a severance payment equal to twenty five percent (25%) of the
Executive’s annual salary. In the event Executive is involuntarily terminated for just cause then
he shall not be entitled to any severance payment. For purposes of this Agreement, “just cause”
shall be defined as any of the following:

     a) acts of fraud, embezzlement or misappropriation with respect to the business;

     b) conviction of a felony or a crime involving moral turpitude;

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
	Confidential
	 	Page 2
	 	 

 

 

     c) violation of any non-disclosure or non-compete covenants;

     d) material breach of the employment agreement;

     e) violation of the Company’s “Drug Free Workplace Policy” or any use of drugs or alcohol
which substantially interferes with performance of duties.

     10. ADDITIONAL COMPENSATION UPON A CHANGE IN CONTROL In the event there is a change
of control of the Company and within six (6) months of the Change of Control Date your
employment with the Company or its successor is terminated for a reason other- than for an act
of fraud, embezzlement or misappropriation, a conviction of a felony or crime of moral
turpitude, violations of any non-disclosure or non-compete covenant, or violation of the Company
“Drug Free Workplace Policy” the Company or its successor shall pay to the Executive or his
estate a severance payment equal to fifty percent (50%) of the Executive’s annual salary.

     a. The term “Change in Control” as used in this Agreement means a change of control of a
nature that would be required to be reported pursuant to Regulation 14A under the Securities
Exchange Act of 1934, as amended, whether or not the Company is then subject to the reporting
requirement; provided that, whether or not any of the following events would constitute a change
of control of such a nature, a “Change in Control” shall be deemed to occur for purposes of this
Agreement if and when any of the following events occur:

     1) any “person” (as such term is used in 13(d) and 14(d)(2) of the Securities Exchange Act of
1934, as amended) other than -

          a) the Company

          b) a Subsidiary

          c) a trustee or other fiduciary holding securities

          d) an underwriter engaged in a distribution of Company stock to the public with the
Company’s written consent,

     becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of Voting Securities that represents more than fifty percent (50%) of the
combined voting power of the then outstanding Voting Securities.

     2) the stockholders of the Company approve a, merger, consolidation, recapitalization
or reorganization of the Company or a Subsidiary, reverse split of any class of Voting Securities, or the consummation of any such transaction if stockholder approval is not obtained.

     3) the stockholders of the Company approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company of all or substantially all of the
company’s assets other
than any such transaction which would result in a related party owning or acquiring more than
fifty percent
(50%) of the assets owned by the Company immediately prior to the transaction. A “related
Party” shall
mean a subsidiary, an employee or group of employees of the Company or any subsidiary, a
trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any subsidiary,
or a
corporation or other form of business entity owned directly or indirectly by the stockholders
of the Company
in substantially the same proportion as their ownership of voting securities.

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
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     4) the current Board members as of October 1, 2008 constitute less than fifty percent
(50%) of the Board at any future date.

     11. Vacation;
Benefits.

          (a) Executive shall be entitled to and shall receive four (4) weeks vacation per year,
during which time the Salary provided for herein shall be paid, provided that not more than
one week of
vacation may be taken at any time without the prior written consent of the Company.

          (b) Executive shall be entitled to and shall receive such other benefits that generally are
made available to other employees of the Company to the same extent and on the same conditions
as such
benefits generally are made available to such other employees.

     12. Confidential
Information and Company Property. For purposes of this
Agreement “Confidential Information” shall include:

          (a) any patents, trade-secrets, computer programs, computer software code, know-how,
data, knowledge, ideas, concepts, models, designs, innovations, improvements, inventions,
packages,
prototypes, creations, sketches, techniques, processes, specifications, schematics, and
technology; and

          (b) all documentation or other information relating to (i) the business, operations,
financial or internal structure of the Company or its affiliates, (ii) the customers, clients
and accounts of the
Company, Company personnel, sales and statistical data, (iii) past, present or future research
or other studies
performed by or on behalf of the Company with respect to the business or operations of the
Company and/or
the Company’s products, such as marketing plans, analyses, forecasts, systems, flow charts,
programs, audit
procedures, or any other matters concerning any work performed by the Company for its
customers or
performed in an effort to solicit or obtain customers, (iv) work performed by the Executive
for any customer
or client, and/or (v) any method and/or procedure (such as records, systems, computer
programs,
correspondence or other documents), relating or pertaining to products or projects developed
by the Company
or contemplated by the Company to be developed for its present or its actively solicited
customers; and

          (c) any other information obtained, learned or created by the Executive during the
course of or in connection with Executive’s employment by the Company.

     13. Agreement not to Use or Disclose. The Executive shall not, whether during the term
of Executive’s, employment under this Agreement or at any time after Executive shall leave the
employ of the
Company for any reason whatsoever, use, reproduce, copy or disclose, directly or indirectly,
any Confidential
Information to any other person, firm, partnership, corporation or any other entity, except
where required in
the discharge of the Executive’s duties under this Agreement, or where required by applicable
law. Further,
upon leaving the employ of the Company for any reason whatsoever, the Executive shall
surrender and
deliver to the Company all documentation, correspondence, manuals, computer programs, reports,
tapes,
photographs, listings and any other data, of any type whatsoever, and any copies thereof,
emanating from the
Company or from any of its agents, servants, employees, suppliers, and existing or potential
customers, that
shall have come into the Executive’s possession, by any means whatsoever, during the course of
Executive’s
employment. The restrictions and covenants contained in this paragraph shall not be construed
or interpreted
as to prohibit or forbid the Executive from utilizing the general knowledge, education or
experience gained
by the Executive during the course of her employment in any future endeavors, and shall be
strictly construed
as to only include Company, client or customer specific information.

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
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     14. Ownership of Work Product. Any Confidential Information, design, program,
product, invention, package, prototype, model, innovation, data, improvement, new technique,
process,
computer software program, or product, made, collected, developed, discovered, learned or
used, by the
Executive in connection with the performance of projects assigned to Executive during the
course of
Executive’s employment, whether during or after normal business hours, shall be deemed to have
been made
or developed by the Executive solely for the benefit of the Company and shall be the sole and
exclusive
property of the Company. In order further to effectuate the terms of this Agreement, the
Executive agrees to
assign to the Company all of Executive’s rights to copyrights, patents, and all other
proprietary interests
which Executive might have in any such Confidential Information, design, program, product,
invention,
package, prototype, model, innovation, data, improvement, new technique, process, computer
software
program, or product, which Executive develops during the course of Executive’s employment by
the
Company and take whatever action necessary, including assistance in filing for patent
protection, to protect
the Company’s rights to any such Confidential Information, design, program, product,
invention, package,
prototype, model, innovation, data, improvement, new technique, process, computer software
program, or
product. The Executive will not, during the course of Executive’s employment, use or disclose
to any other
person any such Confidential Information, design, program, product, invention, package,
prototype, model,
innovation, data, improvement, new technique, process, computer software program, or product,
except as
expressly authorized in writing by the Company.

     15. Covenant not to Compete or Interfere.

          (a) Executive recognizes a just purpose in the Company’s protection of its investment in the
contacts, experience, and opportunities afforded to the Executive by his employment with the
Company, and the need of the Company to avoid, for limited times and within a limited area,
competition from persons given training, contacts, and experience by, or through employment with,
the Company. In recognition of such need, Executive agrees that during the term of his employment
with the Company, and for a period of six (6) months after any termination of this Agreement,
Executive will not directly or indirectly, on his own behalf or as a partner, officer, director,
Executive, stockholder or consultant of any other person, firm or corporation compete with the
Company by working as an employee, consultant, partner, officer, director of any organization
which does provide program engineering, acquisition/procurement services, environmental, safety
and health services, business process engineering, systems integration and knowledge management
services which directly competes in any way whatsoever with Horne International and which is
located, either headquartered or has a satellite office, in the Washington D.C. metropolitan area,
which shall be defined as within a one hundred (100) mile radius of Washington, D.C. Executive
also agrees that he will not directly or indirectly, on his own behalf or as a partner, officer,
director, Executive, five percent (5%) or greater stockholder or consultant of any other person,
firm or corporation compete with the Company by working as an employee, consultant, partner,
officer or director of any organization which does provide full life cycle management or any
individual part thereof for the design, development, fabrication and integration of aircraft or
munitions support equipment which directly competes with Spectrum Sciences and Software, Inc. and
which is located, either headquartered or has a satellite office within a one hundred (100) mile
radius of 97 Hill Avenue, Fort Walton Beach, FL. Executive further agrees that during the term of
his employment and for a period of six (6) months thereafter, Executive will not, directly or
indirectly, on his own behalf or as a partner, officer, director, Executive, majority stockholder
or consultant of any other person, firm or corporation solicit, accept or deal with in competition
with the Company the business of any person or entity which either at present or during the six
(6) months prior to the termination of Executive’s employment was a customer or client of the
Company and with whom the Executive had any contact with or dealings with on behalf of the
Company.

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
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	 	Page 5
	 	 

 

 

          (b) It is intended and agreed that, in the event any portion of the non-competition or
non-interference provisions of this Section 15 is judicially held to be invalid or
unenforceable, for whatever reason, such invalid portion shall be treated as severed here from and
this Section 15 shall be considered revised and limited in such manner and to such extent
as may be necessary to make the remaining portion valid and enforceable.

     16. Remedies for Breach.

          (a) The
Executive acknowledges and agrees that any monetary remedy, which the
Company may have, for any breach or threatened breach by the Executive of any of the
provisions of this
Agreement will be inadequate. Therefore, in the event of the breach or threatened breach of
any provision of
this Agreement by the Executive, the Company shall be entitled to specific performance of the
provisions
hereof, and or an ex parte, interlocutory and permanent injunction to enjoin and restrain such
breach or
threatened breach. Such remedies shall be in addition to all other remedies available at law
or in equity,
including the Company’s right to recover from the Executive any and all damages that may be
sustained as a
result of the Executive’s breach or threatened breach of this Agreement.

          (b) If it shall be judicially determined that Executive has violated any of Executive’s
obligations under Section 15, then the period applicable to the obligation which has
been violated shall
automatically be extended by a period of time equal in length to the period during which said
violation(s)
occurred.

          (c) Any and all attorneys’ fees and other expenses incurred by either party to this
Agreement in any action to enforce this Agreement shall be paid by the non-prevailing party in
such action.

     17. Governing Law, Waivers, Consent to Jurisdiction.This agreement will be
governed by, construed and enforced in accordance with the laws of Virginia. The Executive
irrevocably (a)
agrees that any suit, action or other legal proceeding arising out of or relating to this
Agreement or such other
documents which may be delivered in connection with this Agreement may be brought in a court
of record in
the State of Virginia or in the Courts of the United States of America located in such State,
(b) consents to the
jurisdiction of each such court in any such suit, action or proceeding, agrees that a final
and non-appealable
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by
suit on the judgment or in any other manner provided by law. THE EXECUTIVE AND THE COMPANY
HEREBY KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT EITHER MAY HAVE TO
A TRIAL BY JURY.

     18. Entire
Agreement, Survival. This Agreement contains the entire understanding
between the parties hereto and supersedes all other oral and written agreements or
understandings between
them with respect to the subject matter herein. No modification or addition hereto or waiver
or cancellation
of any provision shall be valid except by a writing signed by the party to be charged
therewith. The
provisions of Sections 12 through 15 shall survive and continue in full force and effect upon
the expiration or
termination of this Agreement for any reason.

     19. Binding
Effect. This Agreement shall be binding upon, and inure to the benefit of,
the
parties hereto and their respective heirs, successors, assigns and personal representatives.
As used herein, the
successors of the company shall include, but not be limited to, any successor by a way of
merger,
consolidation, sale of all or substantially all of its assets, or similar reorganization. In
no event may the
Executive assign any rights or duties under this Agreement.

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
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	 	Page 6
	 	 

 

 

     20. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, and all of which together shall constitute one and the
same instrument.

     In Witness Whereof, the parties duly executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	 
	WITNESS or ATTEST:

	 	 	 	HORNE INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	/s/

	 	 	 	/s/ Darryl K. Horne	 	 
	 

	 	 	 	 	 	 
	Name:

	 	 	 	Name: Darryl K. Horne	 	 
	 

	 	 	 	Title: Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	/s/ Robert Werthmann

	 	 	 	/s/ John Krobath	 	 
	 

	 	 	 	 	 	 
	Printed Name:

	 	 	 	Name: John Krobath	 	 

	 	 	 
	 

	 	 
	

	 	 
	 	 
	 

	 	 

					
	 	 	 	 	 
	Confidential
	 	Page 7

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