Document:

Unassociated Document

Exhibit 10.1

ASSUMPTION AGREEMENT

Dated: As of May 6, 2011

Reference is hereby made to a certain loan arrangement by and among (a) SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and (b) PARADIGM HOLDINGS, INC., a Wyoming corporation, with offices at 9715 Key West Avenue, Rockville, Maryland  20850 (“Holdings”), PARADIGM SOLUTIONS CORPORATION, a Maryland corporation, with offices at 9715 Key West Avenue, Rockville, Maryland  20850 (“Solutions”), CALDWELL TECHNOLOGY SOLUTIONS LLC, a Maryland limited liability company, with offices at 17001 Science Drive, Suite 100, Bowie, Maryland 20715 (“Caldwell”) and TRINITY INFORMATION MANAGEMENT SERVICES, a Nevada corporation, with offices at 9715 Key West Avenue, Rockville, Maryland 20850 (“Trinity”) (hereinafter, Holdings, Solutions, Caldwell and Trinity are jointly and severally, individually and collectively, referred to as “Borrower”, and Solutions, Caldwell and Trinity are jointly and severally, individually and collectively, referred to as “Existing Borrower”), evidenced by a certain Loan and Security Agreement (working capital line of credit) dated as of March 13, 2007, among Borrower and Bank, as affected by a certain Joinder Agreement dated as of July 5, 2007, as further affected by a certain Joinder Agreement dated as of September 5, 2007, as amended by a certain First Loan Modification Agreement dated as of August 11, 2008, as further amend by a certain Second Loan Modification Agreement dated as of March 18, 2009, as further amended by a certain Third Loan Modification Agreement dated as of May 4, 2009, as further amended by a certain Fourth Loan Modification Agreement dated as of July 2, 2009, and as further amended by a certain Fifth Loan Modification Agreement dated as of June 11, 2010 (as affected and amended from time to time, the “Loan Agreement”).  All capitalized terms used herein without definitions shall have the meanings given such terms in the Loan Agreement.

1.             Assumption.  The undersigned, PARADIGM HOLDINGS, INC., a Nevada corporation (the “New Borrower”), has merged with Holdings and is the surviving legal entity of such merger (the “Reincorporation”).  New Borrower hereby agrees to substitute itself as a “Borrower” under the Loan Agreement and each of the Loan Documents in lieu of Holdings, and agrees to comply with and be bound by all of the terms, conditions and covenants of the Loan Agreement and Loan Documents, as if it were originally named a “Borrower” therein. Without limiting the generality of the preceding sentence, New Borrower hereby assumes and agrees to pay and perform when due all present and future indebtedness, liabilities and obligations of Holdings and Existing Borrower under the Loan Agreement, including, without limitation, the Obligations.  All references in the Loan Documents to “Borrower” shall be deemed to include New Borrower and Existing Borrower.  Furthermore, all present and future obligations of Existing Borrower shall be deemed to refer to all present and future obligations of New Borrower and Existing Borrower.  New Borrower acknowledges that the Obligations are due and owing to Bank from Existing Borrower, without any defense, offset or counterclaim of any kind or nature whatsoever as of the date hereof.  For the avoidance of doubt, Bank hereby consents to the Reincorporation.

2.             Grant of Security Interest.  To secure the prompt payment and performance of all of the Obligations, New Borrower hereby grants to Bank a continuing lien upon and security interest in all of New Borrower’s now existing or hereafter arising rights and interest in the Collateral, whether now owned or existing or hereafter created, acquired, or arising, and wherever located, including, without limitation, all of New Borrower’s assets (including intellectual property) and all New Borrower’s books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.  New Borrower further covenants and agrees that by its execution hereof it shall provide all such information, complete all such forms, and take all such actions, and enter into all such agreements, in form and substance reasonably satisfactory to Bank that are reasonably deemed necessary by Bank in order to grant a valid, perfected security interest to Bank in the Collateral.  New Borrower hereby authorizes Bank to file financing statements, without notice to New Borrower, with all appropriate jurisdictions in order to perfect or protect Bank’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either New Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code.

  

  

  

3.             Representations and Warranties.  New Borrower hereby represents and warrants to Bank that all representations and warranties in the Loan Documents made on the part of Existing Borrower are true and correct on the date hereof with respect to New Borrower, with the same force and effect as if New Borrower were named as “Borrower” in the Loan Documents in addition to Existing Borrower.

4.             Delivery of Documents.  New Borrower hereby agrees that the following documents shall be delivered to Bank contemporaneously with delivery of this Assumption Agreement, each in form and substance satisfactory to Bank:

	
  

	
A.

	
a certificate of the Secretary of New Borrower with respect to articles of incorporation, by-laws, incumbency and resolutions authorizing the execution and delivery of this Assumption Agreement;

	
  

	
B.

	
consent of the applicable shareholders of New Borrower authorizing the execution and delivery of this Assumption Agreement (to the extent required by New Borrower’s organizational and/or shareholder documents);

	
  

	
C.

	
a long form certificate of the Secretary of State of Nevada (certified within the past thirty (30) days) as to New Borrower’s existence and good standing;

	
  

	
D.

	
a certificate of the Secretary of State of Maryland certified within the past thirty (30) days as to New Borrower’s existence and good standing;

	
  

	
E.

	
the results of UCC searches with respect to New Borrower indicating that there are no Liens, other than Permitted Liens;

	
  

	
F.

	
an Intellectual Property Security Agreement (together with completed exhibits and intellectual property search results) for New Borrower;

	
  

	
G.

	
a Perfection Certificate for New Borrower;

	
  

	
H.

	
a Ratification of Subordination Agreement from Hale Capital Partners, LP (“Hale”) and EREF PARA, LLC (“EREF”);

	
  

	
I.

	
Deposit/Securities Account Control Agreements for New Borrower (as applicable);

	
  

	
J.

	
a legal opinion of New Borrower’s counsel (as to authority and enforceability), in form and substance acceptable to Bank;

	
  

	
K.

	
evidence of insurance (on Acord 28 and Acord 25 forms, together with endorsements to the applicable policies) for each of Existing Borrower and New Borrower; and

	
  

	
L.

	
such other documents as Bank may reasonably request.

  

  

  

5.             Description of Change in Terms.

	
  

	
A.

	
Modifications to Loan Agreement.

	
  

	
1.

	
As used in the Loan Agreement, “Borrower” shall mean and include Solutions, Caldwell, Trinity and Holdings.

	
  

	
2.

	
The Loan Agreement shall be amended by inserting the following new definitions, appearing alphabetically in Section 13.1 thereof:

“           “Caldwell” is Caldwell Technology Solutions LLC, a Maryland limited liability company.”

“           “Holdings” is Paradigm Holdings, Inc., a Nevada corporation.”

“           “Solutions” is Paradigm Solutions Corporation, a Maryland corporation.”

“           “Trinity” is Trinity Information Management Services, a Nevada corporation.”

	
  

	
3.

	
The Loan Agreement shall be amended by deleting the following definition, appearing in Section 13.1 thereof:

“           “IP Agreement” is that certain Intellectual Property Security Agreement executed and delivered by Borrower to Bank.”

and inserting in lieu thereof the following:

“           “IP Agreement” is, collectively, (a) that certain Intellectual Property Security Agreement executed and delivered by Solutions to Bank dated as of March 13, 2007, as amended, (b) that certain Intellectual Property Security Agreement executed and delivered by Caldwell to Bank dated as of July 5, 2007, as amended, (c) that certain Intellectual Property Security Agreement executed and delivered by Trinity to Bank dated as of September 5, 2007, as amended, and (d) that certain Intellectual Property Security Agreement executed and delivered by Holdings to Bank dated as of May 6, 2011, as amended.”

	
  

	
4.

	
As used in the Loan Agreement, the definition of “Permitted Lien” shall be deemed to include, in addition to the categories of “Permitted Liens” specified in Section 13.1 of the Loan Agreement, any Liens of Hale and  EREF.

6.             Choice of Law, Venue and Jury Trial Waiver.  California law governs this Assumption Agreement without regard to principles of conflicts of law.  Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in California.  NOTWITHSTANDING THE FOREGOING, BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE BANK’S RIGHTS AGAINST BORROWER OR ITS PROPERTY.

  

  

  

BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS ASSUMPTION AGREEMENT, THE LOAN AGREEMENT OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS ASSUMPTION AGREEMENT.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

7.             Countersignatures. This Assumption Agreement shall become effective only when it shall have been executed by Existing Borrower, New Borrower and Bank.

  

[The remainder of this page is intentionally left blank]

  

  

  

This Assumption Agreement is executed as of the date first written above.

	  	
NEW BORROWER:

	  	  	  
	  	
PARADIGM HOLDINGS, INC.

	  	  	  
	  	
By:

	
/s/Peter B. LaMontagne

	  	
Name:

	
Peter B. LaMontagne

	  	
Title:

	
President and CEO

	  	  	  
	  	
EXISTING BORROWER:

	  	  	  
	  	
PARADIGM SOLUTIONS CORPORATION

	  	  	  
	  	
By:

	
/s/Peter B. LaMontagne

	  	
Name:

	
Peter B. LaMontagne

	  	
Title:

	
President and CEO

	  	  	  
	  	
CALDWELL TECHNOLOGY SOLUTIONS LLC

	  	  	  
	  	
By:

	
/s/Peter B. LaMontagne

	  	
Name:

	
Peter B. LaMontagne

	  	
Title:

	
 Manager

	  	  	  
	  	
TRINITY INFORMATION MANAGEMENT SERVICES

	  	  	  
	  	
By:

	
 /s/Peter B. LaMontagne

	  	
Name:

	
Peter B. LaMontagne

	  	
Title:

	
 President and CEO

	  	  	  
	  	
BANK:

	  	  	  
	  	
SILICON VALLEY BANK

	  	  	  
	  	
By:

	
 /s/Christine Egitto

	  	
Name:

	
Christine Egitto

	  	
Title:

	
 Vice PresidentUnassociated Document

Exhibit 10.2

INTELLECTUAL PROPERTY SECURITY AGREEMENT

This Intellectual Property Security Agreement (this “IP Agreement”) is made as of the 6th day of May, 2011 by and between PARADIGM HOLDINGS, INC., a Nevada corporation, with offices at 9715 Key West Avenue, Rockville, Maryland 20850 (“Grantor”), and SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Lender”).

RECITALS

A.            Lender has agreed to make advances of money and to extend certain financial accommodations to Grantor (the “Loan”), pursuant to a certain Loan and Security Agreement (working capital line of credit) dated as of March 13, 2007 among Grantor, Paradigm Solutions Corporation, Caldwell Technology Solutions LLC, Trinity Information Management Services and Lender, as affected by a certain Joinder Agreement dated as of July 5, 2007, as further affected by a certain Joinder Agreement dated as of September 5, 2007, as amended by a certain First Loan Modification Agreement dated as of  August 11, 2008, as further amend by a certain Second Loan Modification Agreement dated as of March 18, 2009, as further amended by a certain Third Loan Modification Agreement dated as of May 4, 2009, as further amended by a certain Fourth Loan Modification Agreement dated as of July 2, 2009, as further amended by a certain Fifth Loan Modification Agreement dated as of June 11, 2010, and as assumed by Grantor pursuant to that certain Assumption Agreement between Bank and Grantor dated as of May 6, 2011 (as affected and amended, collectively, the “Loan Agreement”).  The Loan is secured pursuant to the terms of the Loan Agreement.  Lender is willing to enter into certain financial accommodations with Grantor, but only upon the condition, among others, that Grantor shall grant to Lender a security interest in certain Copyrights, Trademarks, Patents, and Mask Works, and other assets, to secure the obligations of Grantor under the Loan Agreement.  Defined terms used but not defined herein shall have the same meanings as in the Loan Agreement.

B.             Pursuant to the terms of the Loan Agreement, Grantor has granted to Lender a security interest in all of Grantor’s right title and interest, whether presently existing or hereafter acquired in, to and under all of the Collateral (as defined therein).

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged and intending to be legally bound, as collateral security for the prompt and complete payment when due of Grantor’s Indebtedness (as defined below), Grantor hereby represents, warrants, covenants and agrees as follows:

1.             Grant of Security Interest. As collateral security for the prompt and complete payment and performance of all of Grantor’s present or future indebtedness, obligations and liabilities to Lender (hereinafter, the “Indebtedness”), including, without limitation, under the Loan Agreement, Grantor hereby grants a security interest in all of Grantor’s right, title and interest in, to and under its registered and unregistered intellectual property collateral (all of which shall collectively be called the “Intellectual Property Collateral”), including, without limitation, the following:

(a)            Any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished, registered or unregistered, and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held, including without limitation those set forth on EXHIBIT A attached hereto (collectively, the “Copyrights”);

(b)            Any and all trade secret rights, including any rights to unpatented inventions, know-how, operating  manuals, license rights and agreements, and confidential information, and any and all intellectual property rights in computer software and computer software products now or hereafter existing, created, acquired or held;

(c)            Any and all design rights which may be available to Grantor now or hereafter existing, created, acquired or held;

  

-1-

  

(d)            All patents, patent applications and like protections including, without limitation, improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same, including without limitation the patents and patent applications set forth on EXHIBIT B attached hereto (collectively, the “Patents”);

(e)            Any trademark and service mark rights, slogans, trade dress, and tradenames, trade styles,  whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Grantor connected with and symbolized by such trademarks, including without limitation those set forth on EXHIBIT C attached hereto (collectively, the “Trademarks”);

(f)             All mask works or similar rights available for the protection of semiconductor chips, now owned or hereafter acquired, including, without limitation those set forth on EXHIBIT D attached hereto (collectively, the  “Mask Works”);

(g)            Any and all claims for damages by way of past, present and future infringements of any of the rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above;

(h)            All licenses or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works and all license fees and royalties arising from such use to the extent permitted by such license or rights, including, without limitation those set forth on EXHIBIT E attached hereto (collectively, the “Licenses”); and

(i)             All amendments, extensions, renewals and extensions of any of the Copyrights, Trademarks, Patents, or Mask Works; and

(j)             All proceeds and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.

2.           Authorization and Request.  Grantor authorizes and requests that the Register of Copyrights and the Commissioner of Patents and Trademarks record this IP Agreement, and any amendments thereto, or copies thereof.

3.           Covenants and Warranties.  Grantor represents, warrants, covenants and agrees as follows:

(a)            Grantor is now the sole owner of the Intellectual Property Collateral, except for non-exclusive licenses granted by Grantor to its customers in the ordinary course of business.

(b)            Performance of this IP Agreement does not conflict with or result in a breach of any material agreement to which Grantor is bound.

(c)            During the term of this IP Agreement, Grantor will not transfer or otherwise encumber any interest in the Intellectual Property Collateral, except for non-exclusive licenses granted by Grantor in the ordinary course of business or as set forth in this IP Agreement;

(d)           To its knowledge, each of the Patents is valid and enforceable, and no part of the Intellectual Property Collateral has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property Collateral violates the rights of any third party;

(e)            Grantor shall promptly advise Lender of any material adverse change in the composition of the Collateral, including but not limited to any subsequent ownership right of Grantor in or to any Trademark, Patent, Copyright, or Mask Work specified in this IP Agreement;

 

  

-2-

  

 

(f)             Grantor shall (i) protect, defend and maintain the validity and enforceability of the Trademarks, Patents, Copyrights, and Mask Works, (ii) use its best efforts to detect infringements of the Trademarks, Patents, Copyrights, and Mask Works and promptly advise Lender in writing of material infringements detected and (iii) not allow any Trademarks, Patents, Copyrights, or Mask Works to be abandoned, forfeited or dedicated to the public without the written consent of Lender, which shall not be unreasonably withheld, unless Grantor determines that reasonable business practices suggest that abandonment is appropriate.

(g)            Grantor shall take such further actions as Lender may reasonably request from time to time to perfect or continue the perfection of Lender’s interest in the Intellectual Property Collateral;

(h)           This IP Agreement creates, and in the case of after acquired Intellectual Property Collateral this IP Agreement will create, at the time Grantor first has rights in such after acquired Intellectual Property Collateral, in favor of Lender a valid and perfected first priority security interest and collateral assignment in the Intellectual Property Collateral in the United States securing the payment and performance of the obligations evidenced by the Loan Agreement;

(i)             To its knowledge, except for, and upon, the filing of UCC financing statements and the filing of this Agreement with the Register of Copyrights, or other notice filings or notations in appropriate filing offices, if necessary to perfect the security interests created hereunder, no authorization, approval or other action by, and no notice to or filing with, any U.S. governmental authority or U.S. regulatory body is required either (a) for the grant by Grantor of the security interest granted hereby, or for the execution, delivery or performance of this IP Agreement by Grantor in the U.S. or (b) for the perfection in the United States or the exercise by Lender of its rights and remedies thereunder;

(j)             All information heretofore, herein or hereafter supplied to Lender by or on behalf of Grantor with respect to the Intellectual Property Collateral is accurate and complete in all material respects.

(k)            Grantor shall not enter into any agreement that would materially impair or conflict with Grantor’s obligations hereunder without Lender’s prior written consent, which consent shall not be unreasonably withheld.  Grantor shall not permit the inclusion in any material contract to which it becomes a party of any provisions that could or might in any way prevent the creation of a security interest in Grantor’s rights and interest in any property included within the definition of the Intellectual Property Collateral acquired under such contracts.

(l)             Upon any executive officer of Grantor obtaining actual knowledge thereof, Grantor will promptly notify Lender in writing of any event that materially adversely affects the value of any material Intellectual Property Collateral, the ability of Grantor to dispose of any material Intellectual Property Collateral or the rights and remedies of Lender in relation thereto, including the levy of any legal process against any of the Intellectual Property Collateral.

4.             Lender’s Rights.  Lender shall have the right, but not the obligation, to take, at Grantor’s sole expense, any actions that Grantor is required under this IP Agreement to take but which Grantor fails to take, after fifteen (15) days’ written notice to Grantor.  Grantor shall reimburse and indemnify Lender for all reasonable costs and reasonable expenses incurred in the reasonable exercise of its rights under this section 4.

5.             Inspection Rights.  Grantor hereby grants to Lender and its employees, representatives and agents the right to visit, during reasonable hours upon prior reasonable written notice to Grantor, any of Grantor’s plants and facilities that manufacture, install or store products (or that have done so during the prior six-month period) that are sold utilizing any of the Intellectual Property Collateral, and to inspect the products and quality control records relating thereto upon reasonable written notice to Grantor and as often as may be reasonably requested, but not more than once in every six (6) months; provided, however, nothing herein shall entitle Lender access to Grantor’s trade secrets and other proprietary information.

  

-3-

  

6.             Further Assurances; Attorney in Fact.

(a)           On a continuing basis, Grantor will, upon request by Lender, subject to any prior licenses, encumbrances and restrictions and prospective licenses, make, execute, acknowledge and deliver, and file and record in the proper filing and recording places in the United States, all such instruments, including appropriate financing and continuation statements and collateral agreements and filings with the United States Patent and Trademarks Office and the Register of Copyrights, and take all such action as may reasonably be deemed necessary or advisable, or as requested by Lender, to perfect Lender’s security interest in all Copyrights, Patents, Trademarks, and Mask Works and otherwise to carry out the intent and purposes of this IP Agreement, or for assuring and confirming to Lender the grant or perfection of a security interest in all Intellectual Property Collateral.

(b)           In addition to section 6(a) above, Grantor shall not register any Copyrights or Mask Works in the United States Copyright Office unless it: (i) has given at least fifteen (15) days’ prior written notice to Lender of its intent to register such Copyrights or Mask Works and has provided Lender with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (ii) executes a security agreement or such other documents as Lender may reasonably request in order to maintain the perfection and priority of Lender’s security interest in the Copyrights proposed to be registered with the United States Copyright Office; and (iii) records such security documents with the United States Copyright Office contemporaneously with filing the Copyright application(s) with the United States Copyright Office.  Grantor shall promptly provide to Lender a copy of the Copyright application(s) filed with the United States Copyright Office, together with evidence of the recording of the security documents necessary for Lender to maintain the perfection and priority of its security interest in such Copyrights or Mask Works.  Grantor shall provide written notice to Lender of any application filed by Grantor in the United States Patent Trademark Office for a patent or to register a trademark or service mark within 30 days of any such filing.

(c)            Grantor hereby irrevocably appoints Lender as Grantor’s attorney-in-fact, with full authority in the place and stead of Grantor and in the name of Grantor, Lender or otherwise, from time to time in Lender’s discretion, upon Grantor’s failure or inability to do so, to take any action and to execute any instrument which Lender may deem necessary or advisable to accomplish the purposes of this IP Agreement, including:

 (i)            To modify, in its sole discretion, this IP Agreement without first obtaining Grantor’s approval of or signature to such modification by amending Exhibit A, Exhibit B, Exhibit C, and Exhibit D hereof, as appropriate, to include reference to any right, title or interest in any Copyrights, Patents, Trademarks or Mask Works acquired by Grantor after the execution hereof or to delete any reference to any right, title or interest in any Copyrights, Patents, Trademarks, or Mask Works in which Grantor no longer has or claims any right, title or interest; and

 (ii)           To file, in its sole discretion, one or more financing or continuation statements and amendments thereto, or other notice filings or notations in appropriate filing offices, relative to any of the Intellectual Property Collateral, without  notice to Grantor, with all appropriate jurisdictions, as Lender deems appropriate, in order to further perfect or protect Lender’s interest in the Intellectual Property Collateral.

7.             Events of Default.  The occurrence of any of the following shall constitute an Event of Default under this IP Agreement:

(a)           An Event of Default occurs under the Loan Agreement; or any document from Grantor to Lender; or

(b)           Grantor breaches any warranty or agreement made by Grantor in this IP Agreement.

8.             Remedies.  Upon the occurrence and continuance of an Event of Default, Lender shall have the right to exercise all the remedies of a secured party under the Massachusetts Uniform Commercial Code, including without limitation the right to require Grantor to assemble the Intellectual Property Collateral and any tangible property in which Lender has a security interest and to make it available to Lender at a place designated by Lender.  Lender shall have a nonexclusive, royalty free license to use the Copyrights, Patents, Trademarks, and Mask Works to the extent reasonably necessary to permit Lender to exercise its rights and remedies upon the occurrence of an Event of Default.  Grantor will pay any expenses (including reasonable attorney’s fees) incurred by Lender in connection with the exercise of any of Lender’s rights hereunder, including without limitation any expense incurred in disposing of the Intellectual Property Collateral.  All of Lender’s rights and remedies with respect to the Intellectual Property Collateral shall be cumulative.

  

-4-

  

9.              Indemnity.  Grantor agrees to defend, indemnify and hold harmless Lender and its officers, employees, and agents against:  (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this IP Agreement, and (b) all losses or expenses in any way suffered, incurred, or paid by Lender as a result of or in any way arising out of, following or consequential to transactions between Lender and Grantor, whether under this IP Agreement or otherwise (including without limitation, reasonable attorneys fees and reasonable expenses), except for losses arising from or out of Lender’s gross negligence or willful misconduct.

10.            Termination.  At such time as Grantor shall completely satisfy all of the obligations secured hereunder, Lender shall execute and deliver to Grantor all releases, terminations, and other instruments as may be necessary or proper to release the security interest hereunder.

11.            Course of Dealing.  No course of dealing, nor any failure to exercise, nor any delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof.

12.            Amendments.  This IP Agreement may be amended only by a written instrument signed by both parties hereto.

13.            Counterparts.  This IP Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument.

14.            Law and Jurisdiction.  This IP Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.  GRANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND, AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON LENDER CANNOT AVAIL ITSELF OF THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, GRANTOR ACCEPTS JURISDICTION OF THE COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA.  NOTWITHSTANDING THE FOREGOING,  LENDER SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST GRANTOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH LENDER DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE LENDER’S RIGHTS AGAINST GRANTOR OR ITS PROPERTY.

GRANTOR AND LENDER EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.  EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT.  EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

  

-5-

  

15.            Confidentiality.  In handling any confidential information, Lender shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (i) to Lender’s subsidiaries or affiliates in connection with their present or prospective business relations with Grantor; (ii) to prospective transferees or purchasers of any interest in the Loans; (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with Lender’s examination or audit; and (v) as Lender considers appropriate in exercising remedies under this Agreement.  Confidential information does not include information that either: (a) is in the public domain or in Lender’s possession when disclosed to Lender, or becomes part of the public domain after disclosure to Lender; or (b) is disclosed to Lender by a third party, if Lender reasonably does not know that the third party is prohibited from disclosing the information.

  

-6-

  

EXECUTED as a sealed instrument under the laws of the Commonwealth of Massachusetts on the day and year first written above.

	
Address of Grantor:

	
GRANTOR:

	  	  	  
	
9715 Key West Avenue

	
PARADIGM HOLDINGS, INC.

	
Rockville, Maryland  20850

	  	  
	  	  	  
	  	
By:

	
/s/Peter B. LaMontagne

	  	  	  
	  	
Name:

	
Peter B. LaMontagne

	  	  	  
	  	
Title:

	
President and CEO

	  	  	  
	  	  	  
	  	
SILICON VALLEY BANK

	  	  	  
	
275 Grove Street, Suite 2-200

	  	  
	
Newton, Massachusetts 02466

	  	  
	  	
By:

	
/s/Christine Egitto

	  	  	  
	  	
Name:

	
Christine Egitto

	  	  	  
	  	
Title:

	
Vice President

  

-7-

  

Exhibit “A” attached to that certain Intellectual Property Security Agreement dated May 6, 2011.

EXHIBIT “A”

COPYRIGHTS

SCHEDULE A - ISSUED COPYRIGHTS

	
COPYRIGHT

	  	
REGISTRATION

	  	
DATE OF

	
DESCRIPTION

	 	
NUMBER

	 	
ISSUANCE

None

SCHEDULE B - PENDING COPYRIGHT APPLICATIONS

	
FIRST DATE

	  	  	  	  	  	  	  	  
	
COPYRIGHT

	  	
APPLICATION

	  	
DATE OF

	  	
DATE OF

	  	
OF PUBLIC

	
DESCRIPTION

	 	
NUMBER

	 	
FILING

	 	
CREATION

	 	
DISTRIBUTION

None

SCHEDULE C - UNREGISTERED COPYRIGHTS (Where No Copyright Application is Pending)

	  	  	  	  	  	  	
DATE AND

	  	  
	  	  	  	  	  	  	
RECORDATION

	  	  
	  	  	  	  	  	  	
NUMBER OF IP

	  	  
	  	  	  	  	  	  	
AGREEMENT WITH

	  	  
	  	  	  	  	  	  	
OWNER OR ORIGINAL

	  	  
	  	  	  	  	  	  	
GRANTOR IF

	  	
ORIGINAL AUTHOR

	  	  	  	  	  	  	
AUTHOR OR OWNER

	  	
OR OWNER OF

	  	  	  	  	
FIRST DATE

	  	
OF COPYRIGHT

	  	
COPYRIGHT IS

	
COPYRIGHT

	  	
DATE OF

	  	
OF

	  	
IS DIFFERENT

	  	
DIFFERENT FROM

	
DESCRIPTION

	  	
CREATION

	  	
DISTRIBUTION

	  	
FROM GRANTOR

	  	
GRANTOR

None

  

-8-

  

Exhibit “B” attached to that certain Intellectual Property Security Agreement dated May 6, 2011.

EXHIBIT “B”

PATENTS

	
PATENT

	  	  	  	  	  	  	  	  	  	  
	
DESCRIPTION

	  	
DOCKET NO.

	  	
COUNTRY

	  	
SERIAL NO.

	  	
FILING DATE

	  	
STATUS

None

 

  

-9-

  

Exhibit “C” attached to that certain Intellectual Property Security Agreement dated May 6, 2011.

EXHIBIT “C”

TRADEMARKS

	
TRADEMARK

	  	  	  	  	  	  	  	  
	
DESCRIPTION

	  	
COUNTRY

	  	
SERIAL NO.

	  	
REG. NO.

	  	
STATUS

None

 

  

-10-

  

Exhibit “D” attached to that certain Intellectual Property Security Agreement dated May 6, 2011.

EXHIBIT “D”

MASK WORKS

	
MASK WORK

	  	  	  	  	  	  	  	  
	
DESCRIPTION

	  	
COUNTRY

	  	
SERIAL NO.

	  	
REG. NO.

	  	
STATUS

None

  

-11-

  

Exhibit “E” attached to that certain Intellectual Property Security Agreement dated May 6, 2011.

EXHIBIT “E”

LICENSES

None

 

 

-12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]