Document:

exv10w3

 

Exhibit 10.3

REVOLVING CREDIT NOTE

	$               	               ,  
     

     FOR VALUE RECEIVED, the undersigned, VERIDIAN CORPORATION, a corporation
organized under the laws of the state of Delaware (the “Borrower”), promises to
pay to the order of
          (the “Lender”), at the
place and times provided in the Credit Agreement referred to below, the
principal sum of
          
DOLLARS
($          ) or, if less, the
principal amount of all Revolving Credit Loans made by the Lender from time to
time pursuant to that certain Credit Agreement dated as of June 10, 2002 (as
amended, restated, supplemented or otherwise modified, the “Credit Agreement”)
by and among the Borrower, the Lenders, who are or may become a party thereto
(collectively, the “Lenders”) and Wachovia Bank, National Association, as
Administrative Agent. Capitalized terms used herein and not defined herein
shall have the meanings ascribed to them in the Credit Agreement.

     The unpaid principal amount of this Revolving Credit Note from time to
time outstanding is subject to mandatory repayment from time to time and shall
bear interest, each as provided in the Credit Agreement. All payments of
principal and interest on this Revolving Credit Note shall be payable in lawful
currency of the United States of America in immediately available funds to the
account designated in the Credit Agreement.

     This Revolving Credit Note is entitled to the benefits of, and evidences
Obligations incurred under the Credit Agreement, to which reference is made for
a description of the security for this Revolving Credit Note and for a
statement of the terms and conditions on which the Borrower is permitted and
required to make prepayments and repayments of principal of the Obligations
evidenced by this Revolving Credit Note and on which such Obligations may be
declared to be immediately due and payable.

     THIS REVOLVING CREDIT NOTE SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF NORTH CAROLINA, WITHOUT REFERENCE TO THE CONFLICTS
OR CHOICE OF LAW PRINCIPLES THEREOF.

     The Debt evidenced by this Revolving Credit Note is senior in right of
payment to all Subordinated Debt referred to in the Credit Agreement.

     The Borrower hereby waives all requirements as to diligence, presentment,
demand of payment, protest and (except as required by the Credit Agreement)
notice of any kind with respect to this Revolving Credit Note.

 

     IN WITNESS WHEREOF, the undersigned has executed this Revolving Credit
Note under seal as of the day and year first above written.

	 	VERIDIAN CORPORATION

	[CORPORATE SEAL]	

	 	By:                                              

     Name:
                                  

     Title:exv10w4

 

Exhibit 10.4

SWINGLINE NOTE

	$10,000,000	                    , 2002

     FOR VALUE RECEIVED, the undersigned, VERIDIAN CORPORATION, a corporation
organized under the laws of Delaware (the “Borrower”), promises to pay to the
order of WACHOVIA BANK, NATIONAL ASSOCIATION (the “Lender”), at the place and
times provided in the Credit Agreement referred to below, the principal sum of
TEN MILLION AND NO/100 DOLLARS ($10,000,000.00) or, if less, the principal
amount of all Swingline Loans made by the Lender from time to time pursuant to
that certain Credit Agreement, dated as of June 10, 2002 (as amended, restated,
supplemented or otherwise modified, the “Credit Agreement”) by and among the
Borrower, the Lenders who are or may become a party thereto (collectively, the
“Lenders”) and Wachovia Bank, National Association, as Administrative Agent.
Capitalized terms used herein and not defined herein shall have the meanings
assigned thereto in the Credit Agreement.

     The unpaid principal amount of this Swingline Note from time to time
outstanding is subject to mandatory repayment from time to time as provided in
the Credit Agreement and shall bear interest as provided in Section 5.1 of the
Credit Agreement. Swingline Loans refunded as Revolving Credit Loans in
accordance with Section 2.2(b) of the Credit Agreement shall be payable by the
Borrower as Revolving Credit Loans pursuant to the Revolving Credit Notes, and
shall not be payable under this Swingline Note as Swingline Loans. All
payments of principal and interest on this Swingline Note shall be payable in
lawful currency of the United States of America in immediately available funds
to the account designated in the Credit Agreement.

     This Swingline Note is entitled to the benefits of, and evidences
Obligations incurred under, the Credit Agreement, to which reference is made
for a description of the security for this Swingline Note and for a statement
of the terms and conditions on which the Borrower is permitted and required to
make prepayments and repayments of principal of the Obligations evidenced by
this Swingline Note and on which such Obligations may be declared to be
immediately due and payable.

     THIS SWINGLINE NOTE SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF NORTH CAROLINA, WITHOUT REFERENCE TO THE CONFLICTS
OR CHOICE OF LAW PRINCIPLES THEREOF.

     The Debt evidenced by this Swingline Note is senior in right of payment to
all Subordinated Debt referred to in the Credit Agreement.

     The Borrower hereby waives all requirements as to diligence, presentment,
demand of payment, protest and (except as required by the Credit Agreement)
notice of any kind with respect to this Swingline Note.

 

     IN WITNESS WHEREOF, the undersigned has executed this Swingline Note under
seal as of the day and year first above written.

	 	VERIDIAN CORPORATION

	[CORPORATE SEAL]	

	 	By:                                              

     Name:
                                  

     Title:exv10w5

 

Exhibit 10.5

TERM NOTE

	$               	               ,  
     

     FOR VALUE RECEIVED, the undersigned, VERIDIAN CORPORATION, a corporation
organized under the laws of the state of Delaware (the
“Borrower”), hereby
promises to pay to the order of
               ,
(the “Lender”), at the place and times
provided in the Credit Agreement referred to below, the principal sum
of
               
DOLLARS
($          ) or, if less, the unpaid principal amount of all Term Loans made to
the Borrower by the Lender pursuant to that certain Credit Agreement, dated as
of June 10, 2002 (as amended, restated, supplemented or otherwise modified, the
“Credit Agreement”) by and among the Borrower, the lenders who are or may
become a party thereto (collectively, the “Lenders”) and Wachovia Bank,
National Association, as Administrative Agent. Capitalized terms used herein
and not defined herein shall have the meanings ascribed to them in the Credit
Agreement.

     The unpaid principal amount of this Term Note from time to time
outstanding is subject to mandatory repayment from time to time as provided in
the Credit Agreement and shall bear interest as provided in Section 5.1 of the
Credit Agreement. All payments of principal and interest on this Term Note
shall be payable in lawful currency of the United States of America in
immediately available funds to the account designated in the Credit Agreement.

     This Term Note is entitled to the benefits of, and evidences Obligations
incurred under, the Credit Agreement, to which reference is made for a
description of the security for this Term Note and for a statement of the terms
and conditions on which the Borrower is permitted and required to make
prepayments and repayments of principal of the Obligations evidenced by this
Term Note and on which such Obligations may be declared to be immediately due
and payable.

     THIS TERM NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT REFERENCE TO
THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.

     The Debt evidenced by this Term Note is senior in right of payment to all
Subordinated Debt referred to in the Credit Agreement.

     The Borrower hereby waives all requirements as to diligence, presentment,
demand of payment, protest and (except as required by the Credit Agreement)
notice of any kind with respect to this Term Note.

 

     IN WITNESS WHEREOF, the Borrower has caused this Term Note to be executed
under seal by a duly authorized officer as of the day and year first above
written.

	 	VERIDIAN CORPORATION

	[CORPORATE SEAL]	

	 	By:                                              

     Name:
                                  

     Title:exv10w19

 

Exhibit 10.19

 

SALE AND ASSIGNMENT AGREEMENT

 

BETWEEN

 

SCOTT GOSS

OWNER

 

AND

 

VERIDIAN CORPORATION

PURCHASER

 

August 12, 2002

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 
	SECTION	 	 	 	PAGE NO.
	 
	Section 1.	 	 	
The Sale and Assignment
	 	 	1	 
	 
	Section 2.	 	 	
Covenant Not to Compete
	 	 	1	 
	 
	Section 3.	 	 	
Delivery and Price
	 	 	2	 
	 
	3.	1	 	
Delivery of Software to Purchaser
	 	 	2	 
	 
	3.	2	 	
Price
	 	 	2	 
	 
	Section 4.		 	
Installation and Acceptance
	 	 	4	 
	 
	Section 5.		 	
Other Rights and Obligations
	 	 	4	 
	 
	5.	1	 	
Proprietary Rights
	 	 	4	 
	 
	5.	2	 	
Disclaimer of Warranty
	 	 	4	 
	 
	Section 6.		 	
Limitation of Liability
	 	 	5	 
	 
	Section 7.		 	
Miscellaneous
	 	 	5	 
	 
	7.	1	 	
Entire Agreement
	 	 	5	 
	 
	7.	2	 	
Force Majeure
	 	 	5	 
	 
	7.	3	 	
Governing Law
	 	 	5	 
	 
	7.	4	 	
Assignment
	 	 	6	 
	 
	7.	5	 	
Notice
	 	 	6	 
	 
	7.	6	 	
No Waiver
	 	 	6	 
	 
	7.	7	 	
Enforceability
	 	 	6	 
	 
	7.	8	 	
Remedies
	 	 	6	 
	 
	7.	9	 	
Headings
	 	 	6	 
	 
	7.	10	 	
No Third Party Beneficiaries
	 	 	6	 
	 
	7.	11	 	
Sales Taxes
	 	 	6	 
	 
	7.	12	 	
Mediation and Arbitration
	 	 	7	 
	 
	7.	13	 	
Effectiveness of Agreement
	 	 	7	 
	 
	SCHEDULE 1	
          DESCRIPTION OF THE SOFTWARE
	Attached

 

 

SALE AND ASSIGNMENT AGREEMENT (the “Agreement”) made this 12th day of August,
2002 is entered into by and between SCOTT GOSS, an individual, residing at 11414 Brook Run
Drive, Germantown, MD 20876 (hereinafter referred to as “Owner”) and VERIDIAN
CORPORATION, its subsidiaries and affiliates, with a principal place of business at 1200 South
Hayes Street, Arlington, Virginia (collectively the “Purchaser”).

TERMS AND CONDITIONS

Section 1.   The Sale and Assignment

Effective in accordance with Section 7.13 below, Owner hereby sells, transfers absolutely,
assigns and delivers to Purchaser, for payment of the price set forth in Section 3, all right, title
and interest in and to the “PM Reports” computer programs in source and object code forms and
any updates, enhancements, modifications, revisions, additions, replacements or conversions
thereof (as hereinafter defined) (collectively, the “Programs”), and any related documentation
(the “Documentation”), all as set forth or identified on Schedule 1 hereto (collectively, the
“Software”) including, without limitation, all intellectual property rights therein, and all
trademarks and trade names which Owner uses in connection with the Software, together with
the processes and goodwill and going concern value of the business connected with and
symbolized by such intellectual property rights, patentable rights, trademarks and trade names, as
well as all rights to damages or profits, due or accrued, arising out of past infringement of such
intellectual property rights, patentable rights, trademarks and trade names or injury to said
goodwill and the right to sue for and recover the same in Purchaser’s own name, together with
any and all discoveries, inventions and designs, whether or not patentable, conceived or reduced
to practice by Owner embodied in or arising out of the Software as such exist as of the Effective
Date of this Agreement (collectively, the “Business”), free and clear of any and all liens. Owner
shall promptly disclose all such discoveries, inventions and designs to Purchaser and, upon
request, cooperate in and execute all papers necessary to assign such discoveries, inventions and
designs or intellectual property rights to Purchaser and to assist Purchaser at Purchaser’s expense
in the filing of applications for patents or other registrations in favor of Purchaser. The decision
whether to file and/or prosecute applications for patents or other registrations shall be made
solely by Purchaser.

Section 2.   Covenant Not to Compete

In order to ensure the preservation and protection of good will, intellectual property rights, trade
secrets, and confidential information associated with or embodied in the Business, including the
Software, sold, transferred and assigned to Purchaser under this Agreement and in consideration
for the payments payable to Owner under Section 3 of this Agreement, Owner agrees that the
covenant set forth in this Section 2 is reasonable in scope and duration and necessary to secure
for Purchaser the value of the Business, including the Software and its associated goodwill and
going concern value. Consequently, Owner covenants and agrees, for the period from the
Effective Date of this Agreement until the date that is thirty-six (36) months after the Effective
Date of this Agreement or the date that is eighteen (18) months after Owner’s termination of
employment from Purchaser for any reason, whichever is later, (a) not to engage or otherwise
participate, directly or indirectly, in any business or other commercial enterprise, endeavor, or
activity identical or similar to the Costpoint consulting business for which the Software had been

 

 

used by Purchaser after the Effective Date of this Agreement; and (b) not to engage in, or
directly or indirectly assist in, any activity to hire away any then-current employee of Purchaser
whose employment involves use of the “PM Reports” Software or the provision of Costpoint
consulting services.

Section 3.   Delivery and Price

3.1   Delivery of Software to Purchaser

The Programs shall be delivered both in executable object code form and source code form.
Owner shall deliver any related Documentation to Purchaser.

3.2   Price

The total price to be paid Owner by Purchaser for the Business, including the Software, and
related undertakings of the Owner including, without limitation, the covenant set forth in Section
2 under this Agreement is $3,600,000 payable by Purchase as follows: (1) $2,000,000 paid in
cash at the closing of the Acquisition of Signal Corporation by Purchaser (the “Closing”) as the
total purchase price of the Software; (2) $500,000 paid in cash on the first anniversary of the
Closing, if Owner is still employed by Purchaser or has been terminated by Purchaser during the
preceding year other than for Cause (as such term is defined in the Employment Agreement) or
the Employment Agreement has not been renewed by Purchaser; (3) $550,000 paid in cash on
the second anniversary of the Closing, if Owner is still employed by Owner or has been
terminated by Purchaser during the preceding two years other than for Cause (as such term is
defined in the Employment Agreement) or the Employment Agreement has not been renewed by
Purchaser; and (4) $550,000 paid in cash on the third anniversary of the Closing, if Owner is still
employed by Purchaser or has been terminated by Purchaser during the preceding three years
other than for Cause (as such term is defined in the Employment Agreement) or the Employment
Agreement has not been renewed by Purchaser; provided, however, that in the event there is a
“Change of Control” affecting Purchaser at any time after the Closing, or Owner terminates his
employment with Purchaser at a time when he has “Good Reason” (as such term is defined
below), or the Employment Agreement is terminated because Owner experiences a Total
Disability (as such term is defined in the Employment Agreement) or dies, all outstanding
payments under this Section shall be accelerated and become immediately due and owing to
Owner (or his estate) as of the date such Change of Control or termination becomes effective.

      For the purposes of this Section, a “Change of Control” shall be deemed to have occurred
upon, and shall mean:

		
	 	(a) the acquisition by any person of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Securities Act) of twenty-percent (20%) or more of
either (i) the combined voting power of the then outstanding shares of all classes of
common stock of the Purchaser (the “Outstanding Purchaser Common Stock”) or (ii) the
combined voting power of the then outstanding voting securities of the Purchaser entitled
to vote generally in the election of directors (the “Outstanding Purchaser Voting
Securities”); provided, however, that the following acquisitions that would otherwise
qualify under clause (i) or (ii) shall not constitute a Change of Control;

2

 

		
	 	(A) any acquisition by Owner or a group constituting a person that
includes both Owner or the President of the Purchaser and at least twenty-five (25 %) in number of the total number of individuals covered by
agreements substantially similar to this Agreement before the Change in
Control (an “Owner Group”), or
	 
	 	(B) any acquisition by any entity pursuant to a reorganization, merger or
consolidation, if, immediately following such reorganization, merger or
consolidation, the conditions described in clause (i) or (ii) of clause (b) of
this paragraph are satisfied;

		
	 	(b) the approval by the stockholders of the Purchaser of a reorganization, merger or
consolidation, unless immediately following such reorganization, merger or consolidation
(i) more than 50% of, respectively, the then outstanding shares of common stock of the
corporation resulting from such reorganization, merger or consolidation and the
combined voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially owned, directly
or indirectly, by an Owner Group in substantially the same proportions as their
ownership, immediately prior to such reorganization, merger or consolidation, of the
Outstanding Purchaser Common Stock and Outstanding Purchaser Voting Securities, as
the case may be, or (ii) no person (excluding the Purchaser or an Owner Group)
beneficially owns, directly or indirectly, twenty percent (20%) or more of, respectively,
the then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation or the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the election
of directors; or
	 
	 	(c) if during any period of two (2) consecutive years (not including any period prior to the
execution of this Agreement), individuals who, at the beginning of such period, constitute
the Board, and any new director (other than a director designated by a person who had
entered into an agreement with the Purchaser to effect a transaction described in clause (i)
or (ii) of clause (b) hereof) whose election by the Board of Directors or nomination for
election by the Purchaser’s stockholders was approved by a vote of a least two-thirds of
the directors then still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for any
reason to constitute at least a majority of the members of the Board of Directors.

       For the purposes of this Section, Owner shall be deemed to have “Good Reason” to
terminate his employment upon the occurrence of one or more of the following events:

		
	 	(a) any diminution in Owner’s salary or incentive compensation as set forth in the
Employment Agreement (other than a diminution not to exceed ten percent (10%) that is
applied to all other senior executive officers, or all Division Presidents, of Purchaser) or
any material diminution in employee benefits for the then-current year or any future year;

3

 

		
	 	(b) any material diminution in the overall status, office, title, duty, authority, power or
function of Owner, or the assignment of any duties or responsibilities materially
inconsistent with Owner’s prior position, except a diminution or assignment that is
remedied following notice by Owner to Purchaser;
	 
	 	(c) any relocation of Owner outside the Washington, D.C. metropolitan area, without
Owner’s consent; or
	 
	 	(d) the bankruptcy of Purchaser.

Section 4.   Installation and Acceptance

Purchaser acknowledges that the Software shall be deemed accepted upon installation of the
Programs by the Purchaser on an “AS IS, WHERE IS” basis without any express or implied
warranties whatsoever including the implied warranties of MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR USE, ACCURACY OF DATA, QUALITY,
SATISFACTORY QUALITY, NON-INFRINGEMENT, AVAILABILITY OF DATA, OR
THAT THE PROGRAMS WILL OPERATE UNINTERRUPTED AND/OR ERROR-FREE.

Section 5.   Other Rights and Obligations

5.1   Proprietary Rights

Owner represents that he is the owner of the Business, including the Software, sold, transferred
and assigned herein, free and clear of any and all liens, and that he has the right to enter into the
sale and assignment of the Business, including the Software, and all rights with respect thereto in
accordance with Section 1 of this Agreement. Owner has no knowledge of any claims, causes of
action, suits or other proceedings alleging that the Software or any portion thereof, this sale and
assignment, or its use infringe any intellectual property or other proprietary rights of any third
party.

5.2   Disclaimer of Warranty

THE WARRANTY SET FORTH IN PARAGRAPH 5.1 IS A LIMITED WARRANTY AND IT
IS THE ONLY WARRANTY MADE BY OWNER. OWNER EXPRESSLY DISCLAIMS,
AND PURCHASER HEREBY EXPRESSLY WAIVES, ALL OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY, ACCURACY OF DATA, AVAILABILITY OF DATA,
COMPLETENESS, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR
PURPOSE. OWNER DOES NOT WARRANT AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS THAT THE SOFTWARE WILL MEET PURCHASER’S
REQUIREMENTS OR THAT THE OPERATION OF THE SOFTWARE AND/OR ITS USE
WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT DEFECTS IN THE
SOFTWARE, IF ANY, CAN BE CORRECTED. OWNER’S LIMITED WARRANTY IS IN
LIEU OF ALL LIABILITIES OR OBLIGATIONS OF OWNER FOR DAMAGES ARISING
OUT OF OR IN CONNECTION WITH THE DELIVERY OF THE SOFTWARE OR
RELATED SERVICES. EXCEPT FOR THE ABOVE LIMITED WARRANTY, THE ENTIRE

4

 

RISK AS TO THE QUALITY AND PERFORMANCE OF THE SOFTWARE IS WITH THE
PURCHASER.

Section 6.   Limitation of Liability

PURCHASER AGREES THAT OWNER SHALL NOT BE LIABLE FOR ANY DAMAGE,
LOSS, OR EXPENSE OF ANY KIND ARISING OUT OF OR RESULTING FROM
PURCHASER’S POSSESSION OR USE OF THE SOFTWARE WHETHER SUCH
LIABILITY IS BASED IN TORT, CONTRACT, OR OTHERWISE. IN NO EVENT,
INCLUDING WITHOUT LIMITATION A NEGLIGENT ACT, SHALL OWNER BE LIABLE
TO PURCHASER FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL,
CONSEQUENTIAL, OR PUNITIVE DAMAGES (INCLUDING WITHOUT LIMITATION,
LOSS OF PROFITS, LOSS OR CORRUPTION OF DATA, LOSS OF GOODWILL, WORK
STOPPAGE, COMPUTER FAILURE OR MALFUNCTION, OR INTERRUPTION OF
BUSINESS), ARISING OUT OF OR IN ANY WAY RELATED TO THE SOFTWARE,
PURCHASER’S USE OF, OR INABILITY TO USE, THE SOFTWARE GENERALLY, OR
OTHERWISE IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF
WHETHER OWNER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Section 7.   Miscellaneous

7.1   Entire Agreement

This Agreement, including all attachments, evidences the complete understanding and agreement
of the parties with respect to the subject matter hereof and supersedes and merges all previous
and contemporaneous proposals of sale, communications, representations, understandings and
agreements, whether oral or written, between the parties with respect to the subject matter
hereof. This Agreement may not be modified except by a writing subscribed to by authorized
representatives of both parties. Notwithstanding the foregoing, the parties acknowledge and
agree that the terms and conditions of Owner’s employment with Purchaser will be the subject of
a separate employment and confidentiality agreement (the “Employment Agreement”).

7.2   Force Majeure

Neither party shall be liable to the other for any delay or failure to perform any of the services or
obligations set forth in this Agreement due to any cause beyond its reasonable control.
Performance times shall be considered extended for a period of time equivalent to the time lost
because of such delay.

7.3   Governing Law

This Agreement and performance hereunder shall be governed by the laws of the
Commonwealth of Virginia, without giving effect to the principles of conflict of laws of such
state or international treaties. Owner and Purchaser hereby agree on behalf of themselves and
any person claiming by or through them that the sole and exclusive jurisdiction and venue for
any litigation arising from or relating to this Agreement or the subject matter hereof shall be an
appropriate federal or state court located in the aforesaid Commonwealth of Virginia.

5

 

7.4   Assignment

This Agreement may be assigned by
Purchaser. This Agreement shall apply to, inure to the
benefit of, and be binding upon the parties hereto and upon their permitted successors in interest
and permitted assigns.

7.5   Notice

Any notice provided pursuant to this Agreement, if specified to be in writing, shall be in writing
and shall be deemed given (i) if by hand delivery, upon receipt hereof; (ii) if mailed, five (5)
days after deposit in the U.S. mails, postage prepaid, certified mail, return receipt requested. All
notices shall be addressed to the parties at the addresses set forth on the first page hereof.

7.6   No Waiver

The waiver or failure of either party to exercise any right in any respect provided for herein shall
not be deemed a waiver of any further right hereunder.

7.7   Enforceability

If for any reason a court of competent jurisdiction finds any provision of this Agreement, or
portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent
permissible so as to effect the intent of the parties, and the remainder of this Agreement shall
continue in full force and effect.

7.8   Remedies

Unless otherwise specified herein, the rights and remedies of both parties set forth in this
Agreement are not exclusive and are in addition to any other rights and remedies available to it at
law or in equity.

7.9   Headings

The headings of the sections of this Agreement are inserted for convenience only and shall not
constitute a part hereof or affect in any way the meaning or interpretation of this Agreement.

7.10   No Third Party Beneficiaries

The parties agree that this Agreement is for the benefit of the parties hereto and is not intended to
confer any fights or benefits on any third party, and that there are no third party beneficiaries as
to this Agreement or any part or specific provision of this Agreement.

7.11   Sales Taxes

Purchaser shall, in addition to the payments required hereunder, pay all applicable sales, use, or
transfer taxes and duties, whether national, state or local, however designated, which are levied
or imposed by reason of the transaction(s) contemplated hereby, excluding, however, income
taxes on net profits which may be levied against Owner. Purchaser shall reimburse Owner for
the amount of any such sales, use, or transfer taxes or duties paid or accrued directly by Owner
as a result of this transaction.

6

 

7.12   Mediation and Arbitration

		
	 	(a) If a dispute arises out of or relates to this Agreement, or the breach thereof, and the
dispute cannot be settled, the parties agree first to try in good faith to settle the dispute by
mediation administered by the American Arbitration Association under its Commercial
Mediation Rules before resorting to arbitration.
	 
	 	(b) Subject to subsection 7.12.a above, the parties shall settle any dispute arising out of or
related to this Agreement, or the breach thereof, by binding arbitration in the
Commonwealth of Virginia in accordance with the rules of J.A.M.S. ENDISPUTE
subject, however, to the right of either party to apply to a court of competent jurisdiction
for a Temporary Restraining Order, Preliminary Injunction or other equitable relief: (i) to
preserve the status quo, or (ii) to prevent irreparable harm, e.g., either party shall have the
right to institute an action in the event the other party infringes its respective proprietary
rights or breaches nondisclosure obligations, or (iii) to bring suit on an open account for
simple moneys due under the Agreement. The parties shall agree upon a single arbitrator
or, if the parties cannot agree upon an arbitrator within thirty (30) days, then the parties
agree that J.A.M.S. ENDISPUTE using its Streamlined Rules of Arbitration shall appoint
a single arbitrator. The arbitrator may award attorneys’ fees and costs but is specifically
precluded from awarding any indirect, special, punitive, incidental or consequential
damages as part of the award. The award of the arbitrator shall be binding and may be
entered as a judgment in any court of competent jurisdiction.

7.13   Effectiveness of Agreement

This Sale and Assignment Agreement shall become effective only upon closing of the Stock
Purchase Agreement between Veridian as purchaser and Roger Mody and Lori Mody as sellers,
dated August 12, 2002, which closing date shall become the Effective Date hereof.

OWNER HAS READ AND AGREES TO ALL OF THE ATTACHED AND
INCORPORATED TERMS AND CONDITIONS.

	 	 	 
	SCOTT GOSS:	 	
VERIDIAN CORPORATION
	 
	
By:  /s/ Scott Goss                                         	 	
By:  /s/ David H. Langstaff                           
	
Name: Scott Goss                                           	 	
Name:___________________________
	
Title:____________________________	 	
Title:____________________________
	 
	Date: August 12, 2002	 	
Date: August 12, 2002

 

	 	 	 	 	 
	SCHEDULE 1	 	
DESCRIPTION OF THE SOFTWARE
	 	Attached

7

 

SCHEDULE 1

DESCRIPTION OF THE SOFTWARE

Programs: “PM Reports” Software programs

PM Reports© empowers managers and personnel to use technology, to manage, to better
understand, to report the cost and revenue in projects through the organization, and to make
significant process improvements. PM Reports is a utility program that was developed by Scott
Goss from 1996 on to provide real-time reporting to all levels of management, personnel, and
customers. It provides detailed financial, accounting, human resource, time sheet, purchasing,
and contract information. PM Reports provides the necessary information to effectively manage
and empower knowledgeable workers to focus on answering business questions on their own.
PM Reports works in conjunction with Deltek’s Costpoint Accounting Software, including all of
the optional modules (i.e., Purchasing, Human Resources, and Deltek’s Electronic Time Sheet
program). PM Reports accesses the same databases that support Costpoint. PM Reports uses
Cognos’ Impromptu as its reporting application. This leverages its strengths in database
management, security infrastructure maintenance, and distributes the reports to any number of
people inside or outside an organization. Impromptu provides the filters necessary to allow users
to group and sort information, use pick-lists, prompts, query the database, and produce output
reports that are customized in a variety of formats. PM Reports® allows the flexibility to save
reports in PDF and/or Excel formats. Impromptu® allows PM Reports® to be accessed via the
Web and has the security embedded in the application to limit access to authorized users only.

PM Reports® provides tailor-able, read-only access to each user, depending on their level within
the corporation and their need to know.

There are currently 68 reports available, ranging from detailed Profit and Loss (P&L) to time
sheet data. The reports are catalogued into the following groups within PM Reports® and can be
tailored to meet the needs of any size corporation.

	•	 	Project Status Reports
	•	 	Revenue Reports
	•	 	Labor Reports
	•	 	Indirect Project Reports
	•	 	Project Information Reports
	•	 	Project/Employee Structure and Mapping Reports
	•	 	Billing Reports
	•	 	Purchasing and Accounts Payable Reports
	•	 	Employee Information Reports
	•	 	Employee Timesheet Reports

8

 

PM Reports® consists of four components:

	1.	 	Catalog
	 
	2.	 	Reports
	 
	3.	 	Menu
	 
	4.	 	Database scripts

Documentation: “PM Reports” Software Documentation

	 	 	User Manual
	 
	 	 	Promotional Material

9

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