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  Exhibit 10.1    
    

 
 

  EMPLOYMENT AGREEMENT    
    

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of this 31st day
of December, 2007, by and between, Haverstick Consulting, Inc., an Indiana corporation (the "Company"),
and Howard W. Bates, an Indiana resident ("Executive"). 

        WHEREAS,
the Company and Kratos Defense & Security Solutions, Inc., a Delaware corporation ("Kratos"), and Kratos Government
Solutions, Inc., a wholly owned subsidiary of Kratos ("KGS"), have entered into a Merger Agreement dated November 2, 2007 (the
"Merger Agreement") whereby a wholly-owned newly-formed merger subsidiary of KGS is being merged with and into the Company, with the Company being the
surviving corporation; 

        WHEREAS,
Executive has been a shareholder and key employee of the Company for many years and is intimately familiar with the Company and its business; and 

        WHEREAS,
the Company desires that Executive continue to provide services for the benefit of the Company and Executive desires to accept such continued employment with the Company; and 

        WHEREAS,
the execution and delivery of this Agreement is a condition precedent to Kratos', KGS' and the Company's obligations under the Merger Agreement; and 

        WHEREAS,
upon consummation of the transactions contemplated by the Merger Agreement the Company will be a wholly-owned subsidiary of KGS. 

        NOW,
THEREFORE, in consideration of the recitals, the employment of Executive by the Company, and the promises and covenants stated in this Agreement, the parties agree as follows: 

        1.     Employment.    The Company shall employ Executive as President of the Company, such position being the president
of a subsidiary of Kratos, and Executive hereby accepts such employment by the Company subject to the terms and conditions of this Agreement. 

        2.     Duties.

        (a)   Executive
shall report to, and shall have the powers, authority and duties assigned by, the President and CEO of Kratos and CEO of the Company (the
"CEO"). It is understood by Executive and agreed by the Company, that such powers, authority and duties of the Executive as President of the Company
shall always be consistent with those which are customary for, commensurate with, or necessary to the position of President of a subsidiary of a public company, or as that position is modified per
Section 2(c) below. Throughout the Term (as defined in Section 3), Executive shall: (i) devote the Executive's business effort, time, energy and skill to the duties of Executive's
employment hereunder; (ii) faithfully, loyally, and industriously perform such duties; and (iii) diligently follow and implement the lawful management policies and decisions of the Board
or the CEO that are communicated to Executive. During the Term, Executive shall not be engaged during normal business hours in any other business or professional activity, whether or not such activity
is pursued for gain, profit or other pecuniary advantage; provided, however, that Executive may (i) serve on religious, industry, civic or charitable boards or committees, (ii) deliver
lectures, fulfill speaking engagements and teach at educational institutions, (iii) devote time to his personal and family matters (including without limitation his and their investments and
business affairs), or (iv) serve, with the approval of the CEO, which approval shall not be unreasonably withheld, on the boards of directors of non-competitive businesses, so long
as such activities do not interfere with the performance of Executive's responsibilities as an employee of the Company in accordance with this Agreement. 

        (b)   Executive
shall maintain his office at the Company's corporate offices located in Indianapolis, Indiana, from which his services to the Company shall be rendered.
Executive may be required to relocate from such office but shall not be required to relocate to a site outside of the area represented by Marion County, Indiana, and the counties contiguous to Marion
County, 

 

Indiana,
without (i) the prior written consent of Executive and (ii) a comprehensive relocation package. Notwithstanding the foregoing, Executive shall be required to travel from time to
time in accordance with the past practices of Executive as shall be reasonably required for the fulfillment of his duties hereunder. 

        (c)   It
is understood by Executive that it may be in the best interests of Kratos to reorganize its various business units from time to time. Provided that in any such
reorganization the position of the Executive is maintained reasonably equivalent to his position as a president of the Company as subsidiary, there shall be no breach of this Section 2. For
example, Kratos may combine all business units into one corporate entity and dissolve the subsidiary corporations, in which case the presidents of the subsidiaries will then be named as presidents of
divisions or sectors. The term "reasonably equivalent" shall include the title, powers, authority, duties, responsibilities, bonus potential, base salary, business unit size and other appropriate
measures. 

        3.     Term.    Subject to early termination pursuant to Section 5 hereof, the term of Executive's employment
with the Company under this Agreement shall commence as of the close of business on December 31, 2007 (the "Commencement Date") and shall end on
December 31, 2010 (the "Term"). The Company and the Executive agree that they shall have the option to renew this Agreement for subsequent terms.
The CEO and Executive shall discuss the renewal of this Agreement on or about January 15, 2010. 

        4.     Compensation.    During the Term, Executive shall be entitled to the compensation and benefits set forth in this
Section. The payment of any compensation hereunder shall be subject to applicable withholding and payroll taxes, and such other deductions as may be required under the employee benefit plans of the
Company and/or its affiliates, and shall be paid in accordance with the normal payroll and incentive administration practices of the Company and/or its affiliates as they may exist from time to time,
but not less frequently than monthly. 

        (a)   Salary.    The Company shall pay Executive an annual salary of not less than $250,000 (the
"Salary"). Commencing in the first quarter of fiscal year 2009, Executive shall receive an annual performance and salary review, with any corresponding
increase in the Salary to be determined by the Compensation Committee of the Board of Directors of Kratos, in its sole discretion. 

        (b)   Annual Bonus.    For each of the three fiscal years of the Company commencing January 1, 2008,
January 1, 2009, January 1, 2010, respectively, Executive shall be eligible to earn an annual bonus (the "Bonus") up to an amount equal to
the Salary. As a president of a subsidiary, he will be eligible to earn up to fifty percent (50%) of his salary for making the revenue and profit numbers in his annual operating plan ("AOP"). If the
Company exceeds revenue and profit numbers in the AOP by specific targets, Executive shall be eligible to earn up to an aggregate amount equal to his Salary. At or about the beginning of each fiscal
year, the CEO shall present the Executive with his bonus target criteria ("Bonus Letter"), which shall be tied to the Company's AOP and other factors used by Kratos with all operating units. Except as
otherwise provided in Section 6(b), in the event that the Executive is employed by the Company only a portion of a fiscal year, the Bonus shall be calculated to reflect the portion of such
fiscal year for which the Executive was employed by the Company under this Agreement, and tied to the above described performance criteria through the portion of the fiscal year completed. Within one
hundred twenty (120) days after the end of each fiscal year for which a Bonus may be payable hereunder, the Company shall determine from its financial records and/or financial statements
whether or not a Bonus has been earned and the amount of any Bonus payable. Any Bonus shall be paid to Executive at the same time as bonuses are paid generally to other officers of Kratos. 

        (c)   Expense Reimbursement.    Executive will be entitled to prompt reimbursement for all necessary and reasonable
business expenses incurred by Executive in connection with the business of the Company, subject to Executive's compliance with expense reimbursement policies 

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established
by the Company and/or its affiliates from time to time and in sufficient detail to comply with Internal Revenue Service regulations. 

        (d)   Retirement Plans.    Executive shall be eligible to participate in all present and future pension benefit and
retirement plans, practices, policies and programs established or maintained by the Company and/or its affiliates from time to time to the extent applicable generally to executive officers of the
Company and/or its affiliates with the same years of service. 

        (e)   Welfare Benefit Plans.    Executive and/or Executive's family, as the case may be, shall be eligible to
participate in any present and future welfare, fringe, and other similar benefit plans, including, without limitation, participation in any hospitalization, major medical, disability and group life
insurance plans, if any, practices, policies and programs established or maintained by the Company and/or its affiliates from time to time to the extent applicable generally to executive officers of
the Company and/or its affiliates with the same years of service. Notwithstanding, and in addition to, the foregoing, the Executive shall be entitled to the following: (i) payment by the
Company of 100 percent of the premiums at Commencement Date for disability insurance coverage not less than the coverage as of the Commencement Date, (ii) payment by the Company of
100 percent of the premiums at Commencement Date for family coverage for medical insurance, dental insurance and other ancillary insurance and plan benefits with coverage not less than the
coverage as of the Commencement Date, and (iii) payment by the Company of all charges, costs, expenses and premiums at Commencement Date related to Priority Access medical service. Any premium
increases in these above listed benefits from the premiums paid
at Commencement Date, shall be borne by Executive, unless approved by the Compensation Committee of the Board of Directors of Kratos. 

        (f)    Equity Plans.    Commencing with the fiscal year beginning January 1, 2008, Executive shall be eligible
to participate in all present and future equity incentive plans established by the Kratos to the same extent applicable generally to executive officers of the Kratos with the same years of service. 

        (g)   Paid Time Off.    Executive shall be eligible for no less than that amount of paid time off during the Term
established by the Company and/or its affiliates from time to time as is provided to employees who are executive officers of the Company and/or its affiliates with the same years of service; provided,
however, that Executive shall be entitled to at least six weeks of paid time off with pay each year and Executive shall be entitled to carry over such unused paid time off as is consistent with the
policies of Kratos. Upon expiration of the Term or earlier termination of the Executive's employment with the Company, the Executive shall be paid for all unused paid time off. 

        (h)   Restricted Stock.    Effective on December 28, 2007, Executive shall be awarded 75,000 Restricted Stock
Units ("RSUs) related to Common Stock of Kratos pursuant to the terms of the Restricted Stock Unit Agreement attached hereto as Exhibit A (the "Restricted Stock Unit
Agreement"). The restrictions on such RSUs shall lapse at the rate of 25 percent per year over four years with the first such vesting occurring on the first anniversary
of the date of this Agreement; provided, however, that (i) in the event of the termination of Executive's employment pursuant to Section 5(b), or (ii) in the event of a "Change of
Control" (as such term is defined in the Restricted Stock Agreement), or (iii) in the event of the expiration of the Term on December 31, 2010, such restrictions shall lapse immediately. 

        (i)    Years of Service.    For purposes of Executive's participation in the plans of the Kratos contemplated by
Section 4(d), 4(e), 4(f) and 4(g), Executive's years of service shall include that time prior to the date hereof during which Executive had been employed by the Company. 

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        (j)    Vehicle Allowance.    Executive shall be entitled to a vehicle allowance of $250 per pay period. 

        (k)   Disability.    If Executive shall become disabled during the Term, and such Disability shall continue for a
period in excess of one month, the Salary shall be paid to the Executive during the period of such Disability until the earlier of six (6) calendar months or the date Executive begins receiving
long term disability payments under a long term disability policy provided by the Company. Any Salary paid to the Executive under this Section shall be reduced by insurance benefits that the Executive
may receive
from any disability insurance purchased on Executive's behalf by the Company. For purposes of this Agreement, the terms "Disabled" and "Disability" shall be defined as Executive's inability, because
of physical or mental illness or injury or incapacity, to perform Executive's essential duties, with reasonable accommodation. 

        (l)    Bonus Upon Change of Control.    Upon the occurrence of a "Change of Control" of the Company (as such term is
defined in the Restricted Stock Unit Agreement) at any time during the Term following the Commencement Date, the Executive shall be paid immediately in cash, a bonus in an amount equal to the amount
of the Executive's then current Salary in addition to other amounts required to be paid to Executive pursuant to Section 6 hereof, if his position as President of the Company (or as changed per
Section 2 (c) above) or if his powers, authority, duties or responsibilities are materially diminished during the remaining period of the Term following the Change of Control. For
purposes of clarification, this Section 4 (l) only applies to a Change of Control of the Company and not Kratos or KGS. 

        5.     Termination.    Subject to the respective continuing obligations of the parties hereto
set forth in Sections 6 and 7 hereof, the Term and Executive's employment with the Company may be terminated as follows: 

        (a)   By the Company for Cause.    The Company may terminate the Term and Executive's employment with the Company
immediately for cause. For purposes of this Agreement, "for cause" shall mean: 

          (i)  any
act that constitutes on the part of Executive common law fraud, provided that such fraud resulted in, or was intended to result in, a financial benefit to
Executive, or any third party, at the expense of the Company; 

         (ii)  any
material dishonesty on the part of Executive that results in actual financial harm to the Company; 

        (iii)  any
intentional or grossly negligent material breach by Executive of the regulations of the Securities and Exchange Commission or the NASDAQ stock exchange, or any
subsequent stock exchange to which Kratos may list its shares; 

        (iv)  Executive's
conviction of, or plea of no contest with respect to, any criminal offense, which involves dishonesty, moral turpitude or breach of trust, or a felony; 

         (v)  the
willful failure of Executive to perform material duties or responsibilities in connection with Executive's employment with the Company (other than any such failure
resulting from a disability pursuant to Section 5(d) hereof) which failure has not been cured within thirty (30) days after written notice to Executive identifying such failure with
reasonable specificity; 

        (vi)  a
willful and material breach of this Agreement by Executive (other than any such breach resulting from a disability pursuant to Section 5(d) hereof) which
breach has not been cured within thirty (30) days after written notice to Executive identifying such breach with reasonable specificity; 

4

 

       (vii)  any
willful violation by Executive in any material respect of any of the Company's or Kratos' material policies (other than any such violation resulting from a
disability pursuant to Section 5(d) hereof), which violation continues uncured for thirty (30) days after written notice to Executive identifying such violation with reasonable
specificity; or 

      (viii)  the
willful failure by Executive (other than any such failure resulting from a disability pursuant to Section 5(d) hereof) to comply with any reasonable order
or directive of the Board of Directors of the Company or the CEO which failure continues uncured for thirty (30) days after written notice to Executive identifying such failure with reasonable
specificity. 

        (b)   By Executive for Good Reason.    Executive, upon thirty (30) days prior written notice to the Company
and the CEO, stating that the Executive is terminating his employment for Good Reason and stating with specificity the facts upon which the Executive is relying as constituting Good Reason, may
terminate the Term and his employment with the Company for Good Reason. For purposes of this Agreement, "Good Reason" shall be defined as any breach or violation by the Company of any material
provision or covenant of this Agreement (including without limitation a diminution of the Executive's powers, authority or duties under Section 2, as a president of a subsidiary [or
otherwise per Section 2(c) above]), or a relocation of Executive's office other than in compliance with Section 2(b) which breach has not been cured within thirty
(30) days after written notice to the Company identifying such breach with reasonable specificity. 

        (c)   Death.    The Term and Executive's employment with the Company shall terminate automatically and immediately in
the event of Executive's death. 

        (d)   Disability.    Executive's absence from employment or inability to perform his duties hereunder as a result of
physical or mental disability for a period of six (6) months or more. 

        6.     Obligations of the Company upon Termination.

        (a)   Termination by the Company for Cause.    In the event of the termination of the Term and Executive's employment
pursuant to Section 5(a) hereof, the Company shall pay the Salary to Executive, and Executive shall participate in the employee benefit, retirement, and other perquisites as provided in
Section 4 hereof, through the date of termination ("Date of Termination"). Any benefits payable under insurance, health, retirement,
profit-sharing and other employee benefit plans as a result of Executive's participation in such plans through such Date of Termination shall be paid when due under those plans. Any other premiums
payable under Section 4(e) shall be paid when due under the related plans and policies, if due prior to the Date of Termination. Any other benefits payable under Sections 4(e) and 4(k)
shall be paid when due under the related plans and policies. Any bonus earned under Section 4(b) hereof, but not yet paid, shall be paid pursuant to Section 4(b) hereof. Provided
however, that any bonuses earned as a result of any act or omission by Executive as set forth in Section 5(a) hereof, shall be deemed as not earned by Executive and not due to him. 

        (b)   Termination by Executive for Good Reason.    In the event of the termination of the Term and Executive's
employment pursuant to Section 5(b) hereof: 

          (i)  the
Company shall continue to pay the Executive the Salary from the Date of Termination to December 31, 2010; and 

         (ii)  the
Company shall pay Executive a bonus under Section 4(b) as though Executive had remained employed to December 31, 2010, provided the bonus is earned by
the Company meeting its AOP and other targets as set forth in the Bonus Letter; and 

        (iii)  The
Company shall pay when due any benefits payable under insurance, health, retirement, profit-sharing and other employee benefit plans as a result of Executive's 

5

 

participation
in such plans as though Executive had remained employed to December 31, 2010; and 

        (iv)  If
there is a Change of Control as described in Section 4(l), the Company shall pay Executive a bonus under Section 4(l) as though Executive had remained
employed and there is a Change of Control prior to December 31, 2010; and 

         (v)  The
Company shall pay when due any other premiums and benefits payable under Sections 4(e) and 4(k) as though Executive had remained employed to
December 31, 2010. 

        (c)   Termination Because of Death or Disability.    In the event of termination of the Term and Executive's
employment pursuant to Section 5(c) or Section 5(d) hereof, the Salary shall continue to be paid to Executive, and Executive shall continue to participate in the employee benefit,
retirement and compensation plans and other perquisites as provided in Section 4 hereof, (i) in the event of Executive's death, through the date of his death, or (ii) in the event
of Executive's disability, through the Date of Termination. Any benefits payable under insurance, health, retirement, profit-sharing and other employee benefit plans as a result of Executive's
participation in such plans through such Date of Termination shall be paid when due under those plans. Any other premiums and benefits payable under Sections 4(e) and 4(k) shall be paid when
due under the related plans and policies. Any bonus earned under Section 4(b) hereof, but not yet paid, shall be paid pursuant to Section 4(b) hereof. Any bonus earned under
Section 4(l) hereof, but not yet paid, shall be paid pursuant to Section 4(l) hereof. 

        (d)   Severance Payment.    In the event this Agreement is not renewed on or before January 15, 2010, as
provided in Section 3 (a) hereof, on terms substantially similar to those contained in this Agreement, then Executive will not be required to perform any services for the Company in the
third year of this Agreement, other than those minimal usual and customary for an executive similarly situated to assist in the transition of duties to a successor. In the event the Agreement is
renewed on or before January 15, 2010, as provided in Section 3 (a) hereof, on terms and conditions substantially similar to those contained in this Agreement, but at a term of
less than three years, the subsequent renewal agreement shall provide that, in addition to the other amounts payable as otherwise provided therein, in the event of the termination of a shortened term
of such renewed agreement and Executive's employment by the Executive for "Good Reason" (as defined therein) or in the event of the expiration of the renewed agreement at the end of the shortened term
of such renewed agreement, the Company shall pay the Executive a severance payment equal to $250,000 payable in twelve (12) equal monthly installments with the first installment due and payable
on the date of termination of the Executive's employment ("Severance Payment"). If the Executive and the Company agree at or before January 15, 2010 that the Executive shall continue to work in
full performance of this Agreement through the end of 2010, then Executive shall be entitled to the Severance Payment during 2011. 

        (e)   No Mitigation; Exclusive Remedy.    Executive shall not be required to mitigate the amount of any payment
provided for in this Section 6 by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 6 be reduced by any compensation earned by
Executive as the result of employment by another company or business or by profits earned by Executive from any other source at any time before and after the Date of Termination. The payments provided
under this Section 6 upon termination shall be in lieu of any other payments or damages recoverable in any causes of action by Executive related to this Agreement. 

        7.     Non-Competition and Non-Solicitation.

        (a)   Subject
to the terms and conditions hereof, Executive covenants and agrees that, for the Restricted Period and in the Restricted Territory (as defined below), Executive
shall not, either directly or indirectly, through an affiliated or controlled entity or person, on his own behalf or as a 

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partner,
director, consultant, proprietor, principal, agent, creditor, security holder, trustee or otherwise (except by ownership of five percent (5%) or less of the outstanding stock of any publicly
held corporation) or in any other capacity, own, manage, operate, finance, control, invest, participate or engage in, lend his name to, lend credit to, render services or advice to, or devote any
material endeavor or effort to a venture or business that is engaged in a business substantially similar to the Restricted Business. 

        (b)   The
"Restricted Territory" shall be the United States of America. The "Restricted Period" as used in this Agreement shall be; through the three (3) year Term of
this Agreement; and/or through the Term of any renewal of this Agreement; and/or through the final payment of the Severance Payment per Section 6(d) hereof. Therefore, if, for example the
Executive leaves the Company for any reason during the initial three year Term of this Agreement, whether it is voluntarily, involuntarily or for Good Cause, he shall be bound by the terms of
Sections 7, 8 and 9 through the end of the three year period. If the Executive leaves the Company for any reason during any renewal of the agreement he shall be bound by the terms of
Sections 7, 8, and 9 though the end of the renewal term; and he shall be bound by Sections 7, 8, and 9 during any period where he receives a Severance Payment. "Restricted Business"
means that any business, operations or planned businesses or lines of business engaged in or planned by Kratos, KGS, the Company or any affiliates or subsidiaries thereof at the termination of the
Executive's active employment. A planned business or lines of business shall mean a material and significant level of investment and planning and preparation, as to which the Executive has knowledge,
to enter into the subject business or lines of business. 

        (c)   The
covenants contained in this Section 7 shall be construed as if each covenant is divided into separate and distinct covenants in respect of the Restricted
Business, each capacity in which Executive is prohibited from competing and each part of the Restricted Territory in which the Company is carrying on the Restricted Business. Each such covenant shall
constitute separate and several covenants distinct from all other such covenants. 

        (d)   Each
of the parties recognizes that the territorial restrictions contained in this Agreement are properly required for the adequate protection of the Restricted Business
and that in the event any covenant or other provision contained herein shall be deemed to be illegal, unenforceable or unreasonable by a court or other tribunal of competent jurisdiction with respect
to any part of the Restricted Territory, such covenant or provision shall not be affected with respect to any other part of the Restricted Territory, and each of the parties agrees and submits to the
reduction of said territorial restriction to such an area as said court shall deem reasonable. 

        8.     Noninterference with Business.

        (a)   During
the Restricted Period, Executive agrees not to (a) directly or indirectly contact any of the Company's, Kratos' or KGS' then current customers or
prospective customers with whom the Company, Kratos or KGS is engaged in discussions or proposal negotiations ("Prospective Customers") for the purpose of diverting or taking away from the Company,
Kratos or KGS any business existing as of the date of the termination of Executive's employment with the Company, Kratos or KGS; or (b) otherwise interfere with, impair or damage the Company's,
Kratos' or KGS' relationship with any of its then current or Prospective Customers. 

        (b)   During
the Restricted Period, Executive agrees not to knowingly directly or indirectly solicit, whether for his own benefit or for that of another, induce or attempt to
induce any employee, consultant or independent contractor to terminate or breach an employment, contractual or other relationship with the Company, Kratos or KGS. 

        9.     Non Disparagement.    Executive expressly agrees that during his employment with the
Company and for two (2) years following the termination of such employment for any reason, he will make no 

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statement
and take no actions of any kind, verbal or written, that directly or indirectly disparage, the Company, Kratos or KGS, or any affiliates or related parties, to any of their respective
employees, customers or vendors, or interferes with the Company's or affiliates operations. 

        10.   Proprietary Matter; Ownership.    Except as permitted or directed by the Company or as required by law,
Executive shall not during the term of his employment or at any time thereafter knowingly divulge, furnish, disclose or make accessible (other than in the ordinary course of the business of the
Company) to anyone for use in any way any confidential, secret, or proprietary knowledge or information of the Company or its affiliates that is not in the public domain ("Proprietary Matter") which
Executive has acquired or become acquainted with or will acquire or become acquainted with during his employment, whether developed by himself or by others, including, but not limited to, any trade
secrets, confidential or secret designs, processes, formulae, software or computer programs, plans, devices, or material (whether or not patented or patentable, copyrighted or copyrightable) directly
or indirectly useful in any aspect of the business of the Company and its affiliates, any confidential customer, distributor or supplier lists of the Company or its affiliates, any confidential or
secret development or research work of the Company or its affiliates, or other confidential, secret or non-public aspects of the business of the Company or its affiliates. Executive
acknowledges that the Proprietary Matter constitutes a unique and valuable asset of the Company or its affiliate, acquired at great time and expense by the Company or such Affiliate, and that any
disclosure or other use of the Proprietary Matter other than for the sole benefit of the Company or such affiliate would be wrongful and could cause irreparable harm to the Company or such affiliate.
The foregoing obligations of confidentiality, however, shall not apply to any knowledge or information which is now published or which subsequently becomes generally publicly known, other than as a
direct or indirect result of the breach of this Agreement by Executive. 

        Executive
agrees that he will fully inform and disclose to the Company from time to time all inventions, designs, improvements, enhancements, developments and discoveries which he now
has, or may hereafter have, during the Term which pertain or relate to the business of the Company or to any experimental work carried on by the Company or its affiliates. All such inventions,
designs, improvements, enhancements, developments and discoveries shall be the exclusive property of the Company or its affiliates. At the Company's sole cost and expense, the Executive shall
reasonably assist the Company or its affiliates in obtaining patents on all such inventions, designs, improvements, enhancements, developments and discoveries deemed patentable by the Company or its
affiliates and shall execute all documents (including assignments and related affidavits) and do all things reasonably necessary to obtain such patents. This provision shall not apply to any
inventions for which no equipment, supplies, facilities or trade secret information of the Company or its affiliates was used and which was developed on Executive's own time without using any of the
Company's or its affiliates' equipment, supplies, facilities or trade secret information, except for those inventions which either: (a) related at the time of conception or reduction to
practice of the invention to the Company or its affiliates business, or actual or demonstrably anticipated research or development of the Company or its affiliates, or (b) result from any work
performed by Executive for the Company or its affiliates. 

        This
Section 10 supplements any existing agreement between the Company and Executive relating to the subject matter set forth in this Section 10. In no event shall this
Section 10 be deemed to limit the rights of the Company contained in any such existing agreement. 

        Upon
termination of his employment for any reason, Executive shall deliver promptly to the Company all records, manuals, books, blank forms, documents, letters, memoranda, notes,
notebooks, reports, data, tables, and calculations or copies thereof, which are the property of the Company and which relate in any way to the business, products, practices or techniques of the
Company, and all other property of the Company and Proprietary Matter, including, but not limited to, all documents which in whole or in part, contain any trade secrets or confidential information of
the Company, which in any of these cases are in his possession or under his control. If Executive purchases any record book, 

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ledger,
or similar item to be used for keeping records of or information regarding the business of the Company or its customers, Executive shall immediately notify the Company, which shall then
immediately reimburse Executive for the expense of such purchase. 

        11.   Injunctive Relief.    Executive agrees that it would be difficult to compensate the
Company fully for damages for any violation of the provisions of this Agreement, including, without limitation, the provisions of Sections 7, 8, 9, and 10. Accordingly, Executive specifically
agrees that the Company shall be entitled to temporary and permanent injunctive relief to enforce the provisions of this Agreement. This provision with respect to injunctive relief shall not, however,
diminish the right of the Company to claim and recover damages in addition to injunctive relief. 

        12.   General Provisions.

        (a)   Severable.    The parties explicitly acknowledge and agree that the provisions of this Agreement are both
reasonable and enforceable. Should any provision or part thereof be held invalid or unenforceable for any reason, then such provision or part shall be enforced to the maximum extent permitted by law.
Likewise, in the event that any one or more of the provisions, or parts of any provisions, contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect by a court of competent jurisdiction, the same shall not invalidate or otherwise affect any other provision or part hereof. Specifically, but without limiting the foregoing in any way, each of
the covenants of the parties to this Agreement contained herein shall be deemed and shall be construed as a separate and independent covenant and should any part or provision of any such covenants be
held or declared invalid by any court of competent jurisdiction, such invalidity shall in no way render invalid or unenforceable any other part or provision thereof or any other covenant of the
parties not held or declared invalid. 

        (b)   Assignment.    This Agreement and the rights and obligations of the Company hereunder may be assigned by the
Company to any successor to the Company or the business of the Company, and shall inure to the benefit of, shall be binding upon, and shall be enforceable by any such assignee, provided that any such
assignee shall agree to assume and be bound by this Agreement and perform and discharge all of the obligations of the Company hereunder. Executive hereby consents to such assignment by the Company.
This Agreement and the rights and obligations of Executive hereunder may not be assigned by Executive; provided, however, in the event of Executive's death any payments due to Executive hereunder
shall be paid to his estate. 

        (c)   Waiver.    The waiver by the Company of any breach of this Agreement by Executive shall not be effective unless
in writing and signed by the CEO, and no such waiver shall operate or be construed as a waiver of the same or another breach on a subsequent occasion. 

        (d)   Code of Conduct.    The Executive shall execute the Kratos Code of Conduct, attached hereto as
Exhibit B, concurrently with the execution of this Agreement. 

        (e)   Governing Law.    This Agreement and the rights of the parties hereunder shall be governed by and construed in
accordance with the laws of the State of Indiana, without regard to conflict of law principles thereof. 

        (f)    Entire Agreement.    This Agreement embodies the entire agreement of the parties relating to the employment of
Executive by the Company. No amendment, modification extension or renewal of this Agreement shall be valid or binding upon the Company or Executive unless made in writing and signed by the parties. 

        (g)   Executive Representations and Warranties.    Executive represents and warrants that the execution and delivery
by Executive of this Agreement and the performance by Executive of Executive's obligations hereunder will not, with or without the giving of notice or the passage of time, or both, (i) violate
any judgment, writ, injunction or order of any court, arbitrator, or 

9

 

governmental
agency applicable to Executive, or (ii) conflict with, result in the breach of any provisions of or the termination of, or constitute a default under, any agreement to which
Executive is a party or by which Executive is or may be bound. 

        (h)   Notice.    All notices, requests, consents, waivers, demands and other communications under this Agreement must
be in writing and will be deemed to have been duly given if personally delivered or if sent by nationally recognized courier for next business day delivery (the date on which such notice, request,
consents, waiver, demand or other communication is received shall be the date of delivery) to the parties at the following addresses (or at such other addresses as shall be specified in writing by any
party to the other party by a notice given in accordance herewith): 

        If
to Executive: 

Howard
W. Bates

15960 Bridgewater Club Blvd

Carmel, IN 46033 

        If
to the Company: 

Haverstick, Inc.

6270 Corporate Drive, Suite 100

Indianapolis, IN 46278

Attention: Chairman and CEO 

        With
a copy to:

Kratos
Defense & Security Services, Inc.

4810 Eastgate Mall

San Diego, CA 92121

Attention: Corporate Secretary 

        (i)    Execution of Agreement.    This Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of
signature pages by facsimile transmission or by electronic transmission in Adobe Acrobat format shall constitute effective execution and delivery of this Agreement as to the parties and may be used in
lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or by electronic transmission in Adobe Acrobat format shall be deemed to be their original
signatures for any purposes whatsoever. 

        (j)    Attorneys' Fees.    The prevailing party shall be entitled to reasonable costs and expenses (including, without
limitation, reasonable attorneys' fees and disbursements) in connection with any litigation relating to any breach or alleged breach of this Agreement. 

        (k)   Indemnification.    Executive shall be entitled to indemnification and/or insurance coverage provided by the
Company and/or the Kratos for and against claims asserted against Executive in, or arising out of, Executive's capacity as an officer of the Company, from and after the Commencement Date of this
Agreement, under the same indemnification standards and/or policies of insurance applicable to similarly-situated officers of the Company, Kratos and their affiliates. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK.] 

10

 

        IN WITNESS WHEREOF, the Company and Executive have each executed and delivered this Employment Agreement as of the date first above
written. 

					
	 
	 	 "Company"

HAVERSTICK CONSULTING, INC.
	     
	 	 	 	 
	 
	 	By:	 	/s/ HOWARD W. BATES

  PRESIDENT

 
	     
	 	 	 	 
	 
	 	 "Executive"
	     
	 	 	 	 
	 
	 	/s/ HOWARD W. BATES

  Howard W. Bates

 
 

  Guaranty    
    

        Kratos Defense and Security Solutions, Inc. hereby unconditionally guarantees the performance by the Company of its obligations
hereunder. This guaranty shall be a guaranty of payment and not of collection. Executive shall not be required to demand payment from the Company before proceeding directly against Kratos to enforce
the obligations of the Company hereunder. 

					
	 
	 	 KRATOS DEFENSE AND SECURITY SOLUTIONS, INC.
	     
	 	 	 	 
	 
	 	By:	 	/s/ DEANNA LUND

  Deanna Lund

Sr. Vice President & Chief Financial Officer

11

QuickLinks

Exhibit 10.1

EMPLOYMENT AGREEMENT

Guarantysfgf8k20090427ex10-1.htm

    
      

      

    

    
       

      SOFTWARE
LICENSE AND MAINTENANCE AGREEMENT

       

      THIS SOFTWARE LICENSE AND MAINTENANCE
AGREEMENT (“Agreement”) is made and entered into as of this 27th day of
April 2009 by and between SFG Financial Corp, a/k/a E-Path FX, a Delaware
Corporation whose principal address is 575 Madison Avenue, 8th Floor,
New York, NY 10022  (“Licensor”), and 551 FX IB Associates, LLC a
Delaware Limited Liability Company, whose principal address is located at 575
Madison Avenue, 8th Floor,
New York, NY 10022 (“Licensee”).

       

      WHEREAS, Licensor is the owner of a
certain proprietary trading software known as the “E-Path FX Trading Platform”,
specifically, and variations thereof, along with documentation and related
information, including the intellectual property rights pertaining thereto:
and

       

      WHEREAS, Licensor is the owner of the
computer equipment (the “Hardware”) required for the operation of the Platform
that is located at a single centralized location, specifically at Internap
Inc,76 Ninth Avenue, New York, New York10011; and

       

      WHEREAS, Licensee desires to obtain
from licensor a Non Exclusive, Non Transferrable  license rights and
licenses granted herein to the Platform, for purposes of implementing and
marketing an over-the-counter, (“OTC”) Foreign Currency Exchange Service
utilizing the Platform; and

       

      WHEREAS, Licensor shall convey a Non
Exclusive license to the Licensee solely for Licensee’s use in the field of
foreign exchange transactions only; and

       

      WHEREAS, Licensor is willing to grant
such rights, licenses and options under the terms and conditions of this
agreement;

       

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

       

       

      ARTICLE
I

      CERTAIN
DEFINITIONS

       

      For the
purposes of this Agreement:

       

      
        	
                1.1

              	
                “AFFILIATE”
      means, in the case of any corporation, partnership, limited liability
      company or other business or investment entity, a different business
      entity or other individual that directly or indirectly, through one or
      more intermediaries controls, or is controlled by, or is under common
      control with the business entity.

              

      

       

      
        	
                1.2

              	
                “CONFIDENTIAL
      INFORMATION” shall mean, all existing and future information,
      including but not limited to Software documentation, Software training and
      instruction manuals, data, reports, programs, methods, tapes, recorded
      notes, computer-generated data, tests, studies and other written
      documents, computer programs, proprietary trade secrets and know-how,
      Software, Intellectual Property Rights and any and all other information
      embodied in a tangible form relating to and disclosed to the Licensee in
      connection with this Agreement, including but not limited to those related
      to the Licensed Technology. The foregoing items referenced in the
      preceding sentence shall be deemed to be “confidential” within the meaning
      hereof when, and so long as it is not in possession of the Licensee prior
      to the disclosure thereof (except in the event same wrongfully obtained
      by, or wrongly disclosed to the Licensee); or is not then and does not
      become part of the public knowledge and literature through the fault of
      the Licensee.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                1.3

              	
                “DERIVATIVE
      WORK” means any additions, modifications, improvements or
      enhancements based upon or incorporating the Licensed Technology, such as
      modifications, enhancements or any other form in which the Licensed
      Software may be recast, transformed or
adapted.

              

      

       

      
        	
                1.4

              	
                “DOCUMENTATION”
      means documentation developed by Licensor from time to time in printed or
      computer file format relating to the installation or use of the Licensed
      Software.

              

      

       

      
        	
                1.5

              	
                “FIELD OF USE”
      means, and is limited to, the utilization of the Licensed Technology by
      the Licensee for the exclusive purpose of fulfilling Spot FX transactions
      by transmitting market data and orders. The “Field of Use” shall not
      include any functions or applications not expressly described in the
      preceding sentence, but shall include functions or applications developed
      by Licensor to enhance the performance within the “Field of
      Use”.

              

      

       

      
        	
                1.6

              	
                  “INTELLECTUAL PROPERTY
      RIGHTS” means, collectively, all of the following intellectual and
      similar property rights of Licensor, whether or not filed, perfected,
      registered, issued or recorded and whether now or hereafter existing
      including, but not limited to, all: (i) patents, patent applications, and
      patent rights, including any and all continuations, divisions, reissues,
      reexaminations, or extensions thereof; (ii) rights associated with works
      of authorship, including but not limited to copyrights, copyright
      applications and copyright registrations. Moral Rights (as defined below)
      trademarks, trademark applications, service marks, trade dress and mask
      works; (iii) rights relating to the protection of trade secrets, know-how
      and other confidential information including, but not limited to, rights
      in industrial property and all associated information and confidential or
      proprietary information; (iv) industrial design rights; (v) utility
      models, inventions, and/or discoveries; (vi) know-how or other data or
      information, software, databases and all embodiments or fixations thereof;
      (vii) Licenses, documentations, registrations and franchises, and all
      additions, improvements and accessions to , and books and records
      describing or used in connection with, any of the items set forth in the
      preceding clause and (viii) any rights analogous to those set forth in the
      preceding clauses and any other proprietary rights relating to intangible
      property.

              

      

       

      
        	
                1.7

              	
                “LICENSED
      KNOW-HOW” means the proprietary know-how and trade secrets related
      to the Licensed Software and all Intellectual Property Rights with respect
      to the Licensed Software.

              

      

       

      
        	
                1.8

              	
                “LICENSED
      SOFTWARE” means the Platform
Software.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      
        	
                1.9

              	
                “LICENSED
      TECHNOLOGY” means the Licensed Know-How and the Licensed Software,
      collectively.

              

      

       

      
        	
                1.10

              	
                “MORAL RIGHTS”
      means and right of paternity or integrity, any right to claim authorship
      of, to object to or prevent and distortion, mutilation or modification of,
      or other derogatory action in relation to, the subject work, whether or
      not such would be prejudicial to the author’s honor or reputation, to
      withdraw from circulation or control the publication or distribution of
      the subject work, or similar right, existing under judicial or statutory
      law of any county in the world, or under and treaty, regardless of whether
      or not such right is denominated or generally referred to as a “moral”
      right.

              

      

       

      
        	
                1.11

              	
                “PLATFORM
      SOFTWARE” means all Software owned, licensed and/or controlled by
      Licensor necessary for the Licensee to operate “E-Path FX Trading
      Platform” (“Platform”), which provides real-time consolidation of multiple
      Electronic Communication Networks (“ECN”) markets, exchanges, and other
      pools of liquidity for Spot FX (collectively the “Pools of Liquidity”) via
      proprietary processes and front-end user interface for viewing market data
      and trading Spot FX.

              

      

       

      
        	
                1.12

              	
                “SOFTWARE”
      means computer programs and systems, whether embodied in software ,
      firmware or otherwise, including, software compilations, software,
      software implementations of algorithms, software tool sets, compilers, and
      software models and methodologies (regardless of the stage of development
      or completion) including any and all: (a) media on which any of the
      foregoing is recorded; (b) forms in which any of the foregoing is embodied
      (whether in Source Code, Object Code, executable code or human readable
      form); (c) translation, ported versions and modifications or any of the
      foregoing. Source Code means fully documented human-readable source code
      form of the Software, including programmer’s notes and materials and
      documentation, sufficient to allow a reasonably skilled programmer to
      understand the design, logic, structure, functionality, operation and
      features and to use, operate, maintain, modify, support and diagnose
      errors. Object Code means Software in machine-readable form that is
      substantially or entirely in binary form or otherwise directly executable
      by a computer after processing or
linking.

              

      

       

       

      ARTICLE
II

      LICENSE GRANT AND
RESTRICTIONS

      

       

      I.           Licensee
acknowledges and agrees that:

       

      
        	
                 
      

              	
                i.

              	
                The
      Licensed Technology is comprised of Licensor’s trade secrets and other
      proprietary, confidential information;
and

              

      

       

      
        	
                 
      

              	
                ii.

              	
                Licensee
      will not sell, lease, lend, transfer, assign, hypothecate, or otherwise
      distribute the licensed programs to any third party for use in the field
      of foreign exchange transactions unless the Licensee receives specific
      approval of the Licensor.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                iii.

              	
                Licensor
      hereby, subject to the terms and conditions of this
      Agreement  and provided that Licensee makes payments to Licensor
      as required under this Agreement,  grants to Licensee a
      non-exclusive license to utilize Licensed Technology solely in the Field
      of Use and subject to the additional restrictions set forth below and
      otherwise in this License
Agreement.

              

      

       

      
        	
                 
      

              	
                iv.

              	
                It
      is hereby acknowledged by Licensor, that Licensee desires to make use of
      the Licensed Technology to access consolidated market data and to enter
      orders for trading Spot FX.

              

      

       

      
        	
                 
      

              	
                v.

              	
                The
      Licensee’s rights to access and use the Licensed Technology is limited to
      Licensor’s operating hours, on days that the foreign exchange markets are
      open for trading (“FX”) (“Market Day”).  At the end of the
      Licensor’s operating hours or each market day the system will
      automatically transmit cancellation messages for each open ticket that is
      processed on the system or on any of the Pools of Liquidity at that
      time.  There is no guarantee that these cancellations of the
      open tickets, nor that such tickets will not result in executions outside
      of the Licensor’s operating hours.  The Licensee will be
      responsible for immediately reporting to the Licensor any apparent failure
      of either transmissions or other system failure or
  delays.

              

      

       

      
        	
                 
      

              	
                vi.

              	
                The
      Licensee will use the Licensed Technology only for (i)
      receiving market data, and (ii) entering trading tickets in the ordinary
      course of the Licensee’s business
activities.

              

      

       

      The
licensee will not use the Licensed Technology or permit the use of the Licensed
Technology for any illegal purpose, and will use the Licensed Technology only in
accordance with the terms of this License Agreement.

       

      
        	
                 
      

              	
                vii.

              	
                The
      Licensee acknowledges and understands neither, the Licensor, nor any of
      its respective affiliates, employees, officers or agents shall assume any
      responsibility or liability for the system’s operations, involving the
      operations of any equipment, (including but not limited to computer
      equipment or peripherals, server equipment, communication equipment and
      data lines, all such equipment, collectively referred to herein as the
      “Equipment”).

              

      

       

      Licensor,
specifically and without limiting any of the foregoing assumes neither,
responsibility or liability for the availability, timeliness or accuracy of the
system or any equipment, regardless of whether or not the equipment was
recommended, selected, is contained for, or is located on the Licensor’s
premises.

       

      The
Licensee has independently evaluated the system, and has concluded that use of
the system confers a significant benefit to the Licensee.  Accordingly
the Licensee hereby assumes all liabilities and risks associated with the use of
the system and equipment, except for direct damages arising from gross
negligence or willful misconduct of the Licensor.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                viii.

              	
                The
      Licensee acknowledges and understands that accessing the Licensed
      Technology triggers and constitutes a renewed assumption of such
      liabilities and risk.

              

      

       

      
        	
                 
      

              	
                i.

              	
                The
      Licensee agrees that neither the Licensor, nor any of its respective
      affiliates, employees, officers, or agents, shall be liable for any loss,
      damage, cost or expense, (direct or indirect) except for
      direct damages arising from the gross negligence of willful misconduct of
      the Licensor.

              

      

       

      
        	
                 
      

              	
                ii.

              	
                Licensor
      shall assume no liability, both contingent and otherwise, which may arise
      out of or be in any way related to the following; (a) furnishing,
      performance, maintenance, use of, or inability to use all or any part of
      the system, (b) any fault in the delivery or operation of the system, (c)
      suspension or termination of the Licensee’s ability to use all or part of
      the system, or any inaccuracies or omissions in any information or
      documentation provided, (d) any failure or delay suffered or allegedly
      suffered by Licensee in initiating and terminating trades, (e) the
      termination of all or part of this Licensee Agreement by the Licensor, (f)
      the termination or modification of any and all parts of the
      License.

              

      

       

      The
foregoing shall apply regardless of whether a claim arises in contract, tort,
negligence, strict liability or otherwise.

       

      II.  Additional Restrictions.
The Licensee expressly agrees and acknowledges that, notwithstanding anything
herein to the contrary, Licensee is not licensed to, and Licensee expressly
agrees that it shall not(and shall not permit any third party to);

       

      
        	
                 
      

              	
                (a)

              	
                use
      the Licensed Technology (all or any portion thereof) other than within the
      scope of the license granted by Licensor under this
    Agreement;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                disclose
      any Licensed Technology to, or permit the use or access of any Licensed
      Technology by, any third party for any reason without the prior written
      consent of Licensor;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                sublicense,
      assign, lease, transfer or distribute any Licensed Technology, or operate
      and Licensed Technology for timesharing, rental, outsourcing, or service
      bureau operations, or to train persons (other than employees of the
      Licensee on the use of any Licensed Technology solely in the Field of
      Use);

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (d)

              	
                create
      or develop, and/or allow any third party to create or develop, any
      Derivative Work of any Licensed
Technology;

              

      

       

      
        	
                 
      

              	
                (e)

              	
                disclose
      any Licensed Technology to, or permit the use or access of any Licensed
      Technology by any individuals other than the employees of the Licensee for
      use in the Field of Use.

              

      

       

      
        	
                 
      

              	
                (f)

              	
                directly
      or indirectly, reverse engineer, reverse assemble, disassemble or
      decompile all and/or  part of the Licensed Technology, or
      otherwise attempt to discover any source code, algorithms, trade secrets
      or other proprietary rights embedded in or relating to the Licensed
      Technology by any means whatsoever (except and solely to the extent that
      applicable law prohibits reverse engineering restrictions), nor shall it
      knowingly permit any other individual or corporation, association,
      partnership, limited liability Licensee, joint venture, joint stock or
      other Licensee, business trust, trust, organization, governmental
      authority or other entity of any kind to do
so.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                Modify,
      alter, improve and/or change in any manner all and/or any portion of the
      Licensed Technology in any manner without the prior written consent of
      Licensor.

              

      

       

      In
addition, Licensor acknowledges and agrees that, except to the extent necessary
for Licensee to exercise its rights under the license granted in this Agreement,
Licensee is not being granted, and will not hold, any other intellectual
property rights of Licensor whatsoever. Licensee’s rights in the Licensed
Technology are hereby limited to the license rights expressly granted to
Licensee under this Agreement and all rights not expressly granted to Licensee
herein are expressly reserved and retained by Licensor. Licensee acknowledges
that the grant of the license set forth in this Section is a non-exclusive
license and that the Licensor shall have the right to use and to license to
other parties the Licensed Technology for any purpose and in any manner as
Licensor may determine in its sole discretion.

       

      Licensee
acknowledges and agrees that the restrictions set forth in this Section,
constitute a material inducement and consideration for Licensor’s willingness to
grant the license set forth herein. Any failure of Licensee to adhere to these
restrictions will constitute a material failure of consideration and material
breach of this Agreement that will entitle Licensor to terminate this Agreement
and all Licensee’s rights and licenses hereunder upon written notice to Licensee
in accordance with the provisions of this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
III

      OWNERSHIP

      

      Licensee
acknowledges that Licensor owns all right, title, and interest in and to the
Licensed Technology and all Intellectual Property Rights therein. Licensee will
not delete or in any manner alter the copyright, or other proprietary rights,
notices of Licensor appearing on or in the Licensed Technology as delivered to
Licensee. Licensee will not copy or reproduce the Licensed Technology (including
Derivative Works of Licensed Technology), in whole or in part without the prior
written consent of Licensor. To the extent Licensee is provided reproduction
rights pursuant to such written consent, Licensee must reproduce on each copy of
any Software related to the Licensed Technology, all copyrights, patent, or
trademark notice, and any other proprietary legends that were provided in the
originals. In addition, Licensee will use its reasonable efforts to protect
Intellectual Property Rights in the Licensed Technology and will report promptly
to Licensor any infringement of such rights of which the Licensee becomes aware.
Licensor reserves the right at its discretion to assert claims against third
parties for the infringement or misappropriation of Licensor’s Intellectual;
Property Rights in the Licensed Technology and to retain all compensation,
damages and other amount payable to Licensor with regard to such infringement or
misappropriation therein.

       

      

      ARTICLE
IV

      TERM

      

      I           Subject
to termination pursuant to this Agreement, the Non Exclusive license granted by
Licensor to Licensee shall be for an initial period of 36 months, commencing
from the acceptance date, (the “Initial Period”). The Agreement may be renewed
for an additional period of seven (7) years at the option of the Licensor. Upon
any breach by Licensee of any representation, warranty, covenant and/or
obligation hereunder, the Licensor may immediately terminate this Agreement and
prohibit the Licensee’s use of any and/or all of the Licensed Technology. In the
event of such immediate termination Licensor shall retain all of it rights under
this Agreement and applicable law including but not limited to the right to
receive payments for all trades performed using the Licensed
Technology.

       

      II           The
Initial Period shall be extended by mutual written of the parties within 45 days
of the close of the Initial Period.

       

      III          Any
additional extension of this License Agreement will be by mutual agreement in
writing.

       

      ARTICLE
V

      LICENSEE FEE, TAXES, AND
TERM

       

      I          
 As consideration for the Licensee to use the licensed programs and
software system as set forth in this agreement, Licensee shall pay to Licensor
the Non Exclusive license fee as set forth below.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (a)           Form of
Payment:

       

      Licensee
shall remit to Licensor, contemporaneous with the execution of this Agreement,
an Initial
Payment of $35,000.00 which has
previously been advanced by Licensee to the Licensor.

       

      All
payments provided for in this Agreement are exclusive of, (and Licensee shall
pay) all taxes, customs, duties, insurance, shipping, and other
charges.  Payments made to Licensor shall be in United States
Dollars.

       

      (b)           Taxes:

       

      All taxes
in connection with this Agreement including foreign or domestic sales, use,
personal property, excise, or other similar taxes, duties, and charges that may
become due as a result of sales of the Platform, however, designated, which
charges shall be paid directly by Licensee.

       

      
        	
                 
      

              	
                (c)

              	
                Option

              

      

       

      
        	
                 
      

              	
                The
      Licensor shall grant to the Licensee a six month option (the “Option”) to
      purchase up to 3,333,333 shares of its common stock. If the Option is
      exercised in part or in whole on or before June 30, 2009, the exercise
      price of the Option shall be $0.15. However, if the Option is exercised
      after July 1, 2009, the exercise price of the Option shall be $0.20. The
      Licensor acknowledges that to date the Licensee has advanced the aggregate
      sum of $63,309, of which $28,309 shall be applied against the partial
      exercise of the Option. Additional sums advanced to SFG, prior to the
      execution of this Agreement, and subsequent to the execution of this
      Agreement shall be detailed in Schedule “A” and annexed hereto and will be
      applied consistent with the terms of  the Option granted
      pursuant to this section.

              

      

       

      USER FEES – Non-Exclusive User Fee and
Pay Periods

       

      
        	
                 
      

              	
                II.

              	
                As
      compensation for the Licensee to use the Licensed Technology during the
      Initial Period, Licensee shall pay to  Licensor, the following
      user fees:

              

      

       

      Charges and Payment
Terms

       

      
        
          	
                  Monthly
      Notional

                  Volume
      bands

                  (US$bn)
      traded on

                  Platform by
      Licensee

                	
                  Payments to
      Licensor

                   Fee
      rate per US$1million

                  traded

                  (for
      each one-way part

                  of
      the trade)

                
	
                  0-10

                	
                  US$7.50

                
	
                  10-20

                	
                  US$7.00

                
	
                  20-30

                	
                  US$6.00

                
	
                  30-50

                	
                  US$5.50

                
	
                  50+

                	
                  US$5.00

                

        

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                i.

              	
                For
      the purpose of this Agreement:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                “Monthly
      Notional Volume” means the US$ (US Dollar) equivalent of the primary
      currency traded Client turnover, provided that US$ (US Dollar) conversion
      should be made based upon the monthly revaluation rate (last business day)
      and volume should be rounded to the nearest million;
  and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                For
      the avoidance of doubt, if any of the Monthly Notional Volume is reached
      in one relevant month, the fee rate per trade applicable to the highest
      Monthly Notional Volume band reached in that month shall apply to all
      trades (each way) in that month; not just to the
      trades within a particular band.  For example, if in any given
      month the Monthly Notional volume traded is (US$10.1 billion), the fee
      rate per (US$1 million trade will be US$7 for the entire amount of US$10.1
      billion.

              

      

       

      
        	
                 
      

              	
                III.

              	
                Time
      of Payment 

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Each
      payment for a particular calendar month shall be due no later than the
      (20th)
      day of the subsequent calendar
month.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Licensee shall calculate the license fee payable to the Licensor for each
      month based on the Monthly Notional Volume bands for that pay period and
      shall pay the Licensor accordingly. In no event shall the amount payable
      by the Licensor be less than the amount recorded by the Licensee as being
      traded with the Licensed Technology multiplied by the applicable Fees set
      forth above.

              

      

       

      
        	
                 
      

              	
                IV.

              	
                Record Keeping and
      Reports

              

      

       

      
        	
                 
      

              	
                (a)

              	
                As
      a condition of Licensee receiving the grant of a license herein, Licensee
      agrees to maintain reasonable records relating to all trades conducted
      through the Licensed Technology and all other uses of the Licensed
      Technology by the Licensee under this Agreement.  Licensee shall
      prepare and submit summary quarterly reports to Licensor no later than 20
      days following the last business day of each calendar quarter, which
      reports must specify a complete record of usage of the Licensed Technology
      by the Licensee and shall accompany the payments made to
      Licensor.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Licensee
      agrees to allow an independent Certified Public Accountant or other Audit
      Professional, (selected by mutual agreement) to audit and analyze
      appropriate accounting records to ensure compliance with all terms of this
      Agreement.  Any such audit shall be permitted by Licensee within
      30 days of Licensee’s receipt of a written request of
      Licensor.

              

      

       

      The cost
of the audit will be borne by Licensor unless a discrepancy of more than
five-percent (5%) is discovered, in which case the cost of the audit shall be
borne by Licensee.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                V.

              	
                Enhancements:
      Supplemental Payments

              

      

       

      
        	
                 
      

              	
                I.

              	
                During
      the term of the non-exclusive license agreement, Licensor shall receive
      from Licensee one third (33%) of the gross amounts earned by the Licensee
      from third parties applicable to the following areas of the Licensed
      Technology usage (if any), (“Supplemental
  Payments”):

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Clearing
      fees

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Banking
      Rebates (“give-up fees”)

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Processing
      of half pips

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Swap
      rates (swap interest rate
differential)

              

      

       

      
        	
                 
      

              	
                (e)

              	
                Currency
      spreads

              

      

       

      Supplemental
Payments will be paid by the Licensee to the Licensor within (10) days of
receipt of said payments by the Licensee from third parties

       

      
        	
                 
      

              	
                II.

              	
                Shares

              

      

       

      (a)           Simultaneously
with the execution hereof, the Licensor shall issue to the Licensee 350,000
shares of its common stock as a bonus.

      

      (b)           Rebate
Shares. During the period commencing on the Acceptance Date through the thirty
six (36th) month
anniversary of this Agreement, the Licensor shall remit to Licensee a series of
rebates based upon the amount of Notional Volumes traded on the EPath FX Trading
Platform by Licensee. The computation of the rebates received by Licensee shall
be expressed as a fixed percentage (15%) of Billable Platform Fees paid by
Licensee to Licensor. The rebates shall be payable in shares of Licensor’s
Common Stock; priced at $.25 cents per share. The amount of rebates earned by
Licensee shall be calculated for each tranche of 30 Billion of Notional Volume
traded in the EPath FX Platform by Licensee. The amount of shares earned by
Licensee shall terminate at the earlier of, the expiration of the term of this
Agreement or the receipt of Six (6,000,000) Million shares of Licensor’s common
stock by Licensee.

      

      By way of
illustration, if the Licensee trades 30 Billion of Notional Volume on the
Platform, with a Billable Platform Fee of $279,000. The rebate to Licensee will
be calculated as follows:

      Rebate =
15% of $279,000 = $41,850;

      Shares of
Licensor representing $41,850/$.25 = 167,400 shares of
Licensor.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ARTICLE
VI

      SUB LICENSE
AGREEMENT

       

       

      Licensee
agrees it shall not exchange, lease, sublease, distribute, assign, sell or
otherwise transfer in any manner any right and/or interest incident to the
License Technology to any third party under any circumstances, without the prior
written consent of the Licensor.

       

      

       

      ARTICLE
VII

      TECHNICAL SUPPORT
SERVICES

      

       

      (a)                  The
Licensor shall provide Technical Support Services relating to the maintenance
and support of the Software and the Licensee shall pay the Licensor $2,500 per
month for such Technical Support Services.

       

      (b)                  The
Licensee may request that the Licensor performs further development and
customization work for creating a unique client front end and other enhancements
to the Platform Software after the effective date.  In the event the
Licensee desires such services, the Licensee must agree in writing to a price
and the terms for such services based upon the scope of the work requested by
Licensee. Until such an agreement is entered into in writing, the Licensor shall
have no obligation to perform such work.

       

      (c)                  The
parties agree that (except for the customization work) (above) all future
enhancements to the Software, including any new Revisions, Versions, updates to,
or any other non-customized development work regarding the Software (which the
Licensee may accept or decline) shall be provided to the Licensee during the
term of this Agreement at no additional cost.

       

      (d)                  Except
for the Charges set forth above, there shall be no additional fees payable by
the Licensee to the Licensor for technical support services pursuant to this
Agreement, unless the parties agree to the contrary in writing.

       

      (e)                  Licensee
and Licensor Responsibilities

       

      
        	
                 
      

              	
                i.

              	
                The
      Licensor shall provide customer support to Licensee on terms and
      conditions set forth herein below.

              

      

       

      
        	
                 
      

              	
                ii.

              	
                The
      Licensee agrees to notify the Licensor in writing (including by email) or
      telephone promptly following the discovery of any
      Error.  Further, upon discovery of such an Error, Licensee
      agrees, if requested by the Licensor, to submit to the Licensor a list of
      output and any other data that the Licensor may reasonably require to
      reproduce the Error (to the extent reasonably available to the Licensee)
      and the operating conditions under which the Error occurred or was
      discovered.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                iii.

              	
                If
      required by the Licensee, the Licensor product managers and engineers will
      host free Web-based training seminars covering a variety of topics to
      facilitate the use of the Software.  These seminars will be
      broadcast on a periodic basis, provided, however, that the Licensor is
      under no obligation to provide them on any specific
    schedule.

              

      

       

      
        	
                 
      

              	
                iv.

              	
                Any
      software, modules, or other methods of communication developed by the
      Licensor in performing duties under this Agreement shall be kept secure
      from access by the unauthorized third parties.  Any failure of
      such security shall be deemed, notwithstanding anything to the contrary, a
      failure of the Primary Function of the
Software.

              

      

       

      (f)           Error
Corrections.  During the term of this Agreement, the Licensor
shall use commercially reasonable efforts to provide Error Corrections for
Errors in the Software reported by Licensee to the Licensor.

       

      (g)           Revisions.  During
the term of this Agreement, the Licensor shall make available to Licensee any
Revisions of the Software or Documentation at no extra charge, subject to
limitations explicitly set forth in this Agreement.  The Licensor will
make such available to the Licensee when the Licensor makes such Revisions
generally available to its other licensees.

       

      (h)           Limitations.  The
Licensor shall have no obligation under this Agreement to make any
modifications, Revisions, or Error Corrections, other than those required to
conform to the requirements of the Specifications and this
Agreement.  Notwithstanding the foregoing, the Licensor shall have no
obligation under this Agreement to correct Errors which result from the breach
by Licensee of this Agreement, or which cannot be remedied due to any
modifications of the Software made by Licensee or any third party without
authorization from the Licensor.  If the Licensor agrees to remedy any
errors or problems not covered by the terms of this Agreement, Licensee shall
pay the Licensor for all such work performed at the Licensor’s then-current
standard rates.  Licensee acknowledges that the Licensor is under no
obligation to perform services with respect to any hardware or any software
which is not the Software.

       

       

      ARTICLE
VIII

      CONTACT
INFORMATION

       

      

       

      Licensor
Information:

       

      
        
          	
                  Account
      Manager:

                	
                  Michael
      C. Caska

                  Telephone:
      917-226-9630

                  Fax:
      646-607-9711

                  E-mail:
      mcaska@caskaco.com

                
	
                  Billing:

                	
                  Michael
      C. Caska

                  Telephone:
      917-226-9630

                  Fax:
      646-607-9711

                  E-mail:
      mcaska@caskaco.com

                
	
                  Tech
      Support:

                	
                  Michael
      C. Caska

                  Telephone:
      917-226-9630

                  Fax:
      646-607-9711

                  E-mail:
      mcaska@caskaco.com

                
	
                  Written
      Notices:

                	
                  SFG
      Financial Corporation

                  575
      Madison Avenue, 8th
      Floor,

                  New
      York, NY 10022

                  Att:
      Michael C. Caska

                   

                   

                

        

      

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Licensee
Information:

       

      
        
          	
                  Account
      Manager:

                	
                  Name:
      Fred Miller

                  Telephone
      212-605-0200

                  Fax:
      212-605-0222

                  E-mail:_____________________________

                
	
                  Billing:

                	
                  Name:
      Fred Miller

                  Telephone
      212-605-0200

                  Fax:
      212-605-0222

                  E-mail:_____________________________

                
	
                  Written
      Notices:

                	
                  551
      FX IB Associates LLC

                  575
      Madison Avenue, 8th
      Floor,

                  New
      York, NY 10022

                  Att:
      Fred Miller

                   

                

        

      

      

       

      

       

      ARTICLE
VIX

      WARRANTY
DISCLAIMER

       

               THE
LICENSED TECHNOLOGY IS PROVIDED ON AN "AS IS" BASIS WITHOUT  WARRANTY
OF ANY KIND AND LICENSOR HEREBY DISCLAIMS ALL WARRANTIES CONCERNING THE LICENSED
TECHNOLOGY, WHETHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, FITNESS FOR PARTICULAR
PURPOSE , COMPLETENESS, USE,
ACCURACY AND/OR  TITLE. LICENSOR DOES NOT WARRANT THAT THE
LICENSED TECHNOLOGY IS ERROR-FREE OR THAT IT WILL MEET LICENSEE'S REQUIREMENTS
OR THAT THE OPERATION OF THE  LICENSED TECHNOLOGY WILL BE
UNINTERRUPTED,TIMELY SECURE OR ERROR-FREE, OR THAT ERRORS IN THE LICENSED
TECHNOLOGY OR NONCONFORMITY TO ITS DOCUMENTATION CAN OR WILL BE
CORRECTED.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
X

      CONFIDENTIAL INFORMATION/NON
SOLICITATION

       

      (a)           NONDISCLOSURE.
The Licensee shall not disclose, publish, or disseminate the Confidential
Information to anyone other than the Licensee’s employees with a need to know
and who have agreed in writing to be bound by the confidentiality provisions of
this Section, or as may be required by legal process. The Licensee agrees to use
the same degree of care with respect to the Confidential Information that it
takes to hold in confidence its own most valuable proprietary information, but
not less than reasonable care, to prevent any unauthorized use, disclosure,
publication, or dissemination of the
Confidential  Information.  The Licensee agrees to accept
and use the Confidential Information only for the purpose of carrying out its
authorized activities under this Agreement. In the event the Licensee is
required to disclose the Confidential Information by an order of a court or
governmental agency, then the Licensee shall first give written notice to
Licensor to allow Licensor to make a reasonable effort to obtain a protective
order or other confidential treatment for the Confidential
Information.

       

      (b)           NON
SOLICITATION. During the Term of
this Agreement and during
the three year period after the expiration or
termination of this Agreement, the Licensee will not solicit any person employed by
Licensor and/or its Affiliates to leave his or
her employment with Licensor. For purpose of this Article the
term “Solicit” means
any affirmative recruitment specifically aimed at one or more individuals
identified by name, title or affiliation, but shall not mean generally
advertising job openings or any activities that constitute follow-up to
individuals who respond to job opening advertisements or who voluntarily
initiate employment inquiries.

       

       

      ARTICLE
XI

      INJUNCTIVE
RELIEF

      

      Licensee acknowledges that (i) any
breach of its obligations under this Agreement with respect to the Licensed
Technology, the Licensed Know-How Rights, , the disclosure of Confidential
Information and/or the  Non Solicitation of Licensor Employees; (ii)
any failure by Licensee to use Licensed Technology strictly in accordance with
the license rights granted to Licensee under this Agreement and/or (iii) any
breach of its obligations under the additional restrictions contained in this
Agreement,  will cause Licensor irreparable injury for which there are
inadequate remedies at law, and therefore, Licensor will be entitled to
equitable relief without the posting of any bond or indemnity (including but not
limited to injunctive relief and the remedy of specific performance) in addition
to all other rights and remedies provided by this Agreement or available at
law.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
XII

      INDEMNITY

      

      Licensee will be solely responsible for
any commercial or legal liability that may arise as a result of Licensee's
exercise of any of the license rights granted by Licensor to Licensee under this
Agreement, and Licensee shall defend, indemnify, and hold Licensor harmless from
and against any and all suits, claims, proceedings, judgments, awards, damages,
loss, liability, cost and expenses (including without limitation reasonable
attorney's fees and other related costs) that are incurred or suffered by
Licensor or any of its affiliates, directors, officers, employees, or agents to
the extent they arise or result, directly or indirectly, from (i) Licensee's
exercise of any license or other rights granted to Licensee under this
Agreement; (ii) the conduct of Licensee's business directly or through any
affiliate of Licensee and/or (iii) the breach by the License of any
representation, warranty, obligation, restriction, term and/or covenant under
this Agreement.

       

      ARTICLE
XIII

      EXCLUSION OF DAMAGES;
LIMITATION OF LIABILITY

      

       

      (a)           IN
NO EVENT SHALL LICENSOR BE LIABLE TO LICENSEE OR TO ANY THIRD PARTY FOR ANY
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT
LIMITATION LOSS OF USE, DATA, BUSINESS OR PROFITS) ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR THE USE, OPERATION OR PERFORMANCE OF ANY
OF  THE LICENSED TECHNOLOGY, WHETHER SUCH LIABILITY ARISES FROM ANY
CLAIM BASED UPON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), PRODUCT
LIABILITY BREACH OR FAILURE OF
EXPRESS OR IMPLIED WARRANTY OR CONDITION, MISREPRESENTATION OR OTHERWISE,
AND WHETHER OR NOT LICENSORHAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR
DAMAGE (INCLUDING, BUT NOT LIMITED
TO, CLAIMS FOR LOSS OF DATA, GOODWILL, USE OF MONEY OR USE OF THE LICENSED
TECHNOLOGY, INTERRUPTION IN
USE OR AVAILABILITY OF DATA, STOPPAGE OF OTHER WORK OR IMPAIRMENT OR OTHER
ASSETS), ARISING OUT OF BREACH OR FAILURE OF EXPRESS OR IMPLIED WARRANTY OR
CONDITION, BREACH OF CONTRACT, MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY
IN TORT, OR OTHERWISE

       

      UNDER NO CIRCUMSTANCE SHALL LICENSOR BE LIABLE FOR ANY ACTIONS, CLAIMS OR THE
LIKE BY LICENSEE OR ANY THIRD PARTY THAT THE USE OF THE LICENSED TECHNOLOGY HAS
RESULTED, RESULTS OR MAY RESULT IN ANY INFRINGEMENT, DEPRIVATION OR VIOLATION OF
THE INTELLECTUAL PROPERTY,
CONSTITUTIONAL, STATUTORY, CONTRACTUAL, COMMON LAW OR OTHER RIGHTS OF ANY
PERSON

       

      (b)           IN
NO EVENT SHALL LICENSOR'S AGGREGATE CUMULATIVE TOTAL LIABILITY UNDER THIS
AGREEMENT EXCEED ONE HALF OF THE AMOUNT PAID BY THE LICENSEE TO Licensor
HEREUNDER.

       

      (c)           THIS
SECTION IS A MATERIAL INDUCEMENT TO AND CONDITION FOR
LICENSOR  ENTERING INTO THIS AGREEMENT.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
XIX

      INSOLVENCY

      

      Either
party shall have the right to terminate this Agreement immediately upon notice
to the other party if the other party: (a) becomes the subject of a voluntary
petition in bankruptcy or any voluntary proceeding relating to insolvency,
receivership, liquidation, or composition for the benefit of creditors; or (b)
becomes the subject of an involuntary petition in bankruptcy or any involuntary
proceeding relating to insolvency, receivership, liquidation, or composition for
the benefit of creditors, if such petition or proceeding is not dismissed within
sixty (60) days of filing.

       

      ARTICLE
XX

      CERTAIN OTHER EVENTS OF
TERMINATION

      

      (a)           Upon
the occurrence of any Change of Control (as defined below) this Agreement and
all Licensee's rights and licenses hereunder shall automatically terminate
unless, prior to the occurrence of such Change of Control, Licensor has
consented to such Change of Control in a writing executed by an officer of
Licensor; provided that Licensor will not unreasonably withhold its consent to
the consummation of a Change of Control. For purposes of the preceding sentence,
Licensor will be deemed to have reasonably withheld its consent to a Change of
Control if  any person or entity who would acquire direct or indirect
control (as defined below) of Licensee pursuant to such Change of Control then
conducts a business that is directly or indirectly competitive with a business
then conducted by Licensor or any of its Affiliates and/or Licensor reasonably
believes that Licensor’s interests will be adversely effected by the continuing
of this Agreement upon such  a Change in Control. As used herein, the
term "CHANGE OF CONTROL" means: (i) a transaction or series of related
transactions that results in the sale or other disposition of all or
substantially all of Licensee's assets; or (ii) a merger or consolidation in
which Licensee is not the surviving corporation or in which, if Licensee is the
surviving corporation, the shareholders of Licensee immediately prior to the
consummation of such merger or consolidation do not, immediately after
consummation of such merger or consolidation, own stock or other securities of
Licensee that possess a majority of the voting power of all Licensee's
outstanding  stock and other securities and the power to elect a
majority of the members of Licensee's board of directors; or (iii) a transaction
or series of related transactions (which may include without limitation a tender
offer for Licensee's stock or the issuance, sale or exchange of stock of
Licensee) if the shareholders of Licensee immediately prior to the initial such
transaction do not, immediately after consummation of such transaction or any of
such related transactions, own stock or other securities of Licensee that
possess a majority of the voting power of all Licensee's outstanding stock and
other securities and the power to elect a majority of the members of Licensee's
board of directors. As used herein, the term "CONTROL" (including, with
correlative meanings, the terms, "CONTROLS" "CONTROLLING", "CONTROLLED BY" or
"UNDER COMMON CONTROL WITH") with respect to a designated person means the
possession, directly or indirectly, of the power to vote a majority of the
securities having voting power for the election of directors (or other persons
acting in similar capacities) of such person or otherwise to direct or cause the
direction of the management and policies of such person, whether through the
ownership of voting securities, by contract or otherwise.

       

      (b)  In the event Licensee winds up, dissolves or
otherwise ceases doing business, Licensor shall be entitled to terminate this
Agreement immediately upon written notice to Licensee.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
XXI

      EFFECT OF
TERMINATION

      

      Upon
termination of this Agreement: for any reason (a) the rights and licenses
granted to Licensee pursuant to this Agreement will automatically terminate, and
(b) Licensee shall, within five (5) days, ship to Licensor all Licensed
Technology, API’s Documentation with respect to the Licensed Technology and
other Confidential Information in Licensee’s possession or control, and an
officer of Licensee shall certify in writing that Licensee as complied with the
provisions of this Section. All of the Licensor’s rights under this Agreement
shall survive termination of this Agreement.

      

       

      ARTICLE
XXII

      RIGHT OF FIRST
REFUSAL

      

      During
the term of this Agreement, the Licensor shall have the right (the “Right of
First Refusal”), for a period (the "Exercise Period") expiring at 11:59 PM
(Eastern Time) on the fifth (5th) business day after the giving of written
notice by the Licensee that it has received a bonafide offer from a third party
to (ii) purchase all or substantially all of the assets of Licensee; or (ii) to
engage in a merger or consolidation in which Licensee is not the surviving
corporation or in which, if Licensee is the surviving corporation, the owners of
Licensee immediately prior to the consummation of such merger or consolidation
do not, immediately after consummation of such merger or consolidation, own
stock or other securities of Licensee that possess a majority of the voting
power of all Licensee's outstanding  stock and other securities and
the power to elect a majority of the members of Licensee's board of
directors.

      

       

      In the
event the Licensor declines or fails to exercise in full the Right of First
Refusal before the expiration of the Exercise Period, the Licensee shall have
the right to consummate the transaction with the third party.

       

      ARTICLE
XXIII

      NON EXCLUSIVE
REMEDY

      

      Termination
of this Agreement by either party will be a nonexclusive remedy for breach and
will be without prejudice to any other right or remedy of such
party.

      

       NO
DAMAGES FOR TERMINATION. NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR DAMAGES
OF ANY KIND, INCLUDING WITHOUT LIMITATION INCIDENTAL OR CONSEQUENTIAL DAMAGES,
DAMAGES FOR THE LOSS OF GOODWILL, PROSPECTIVE PROFITS OR ANTICIPATED INCOME, OR
DAMAGES RESULTING FROM ANY EXPENDITURES, INVESTMENTS, LEASES OR COMMITMENTS MADE
BY EITHER PARTY ON ACCOUNT OF THE TERMINATION OR EXPIRATION OF THIS AGREEMENT IN
ACCORDANCE WITH ITS TERMS.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ARTICLE
XXIV

      GENERAL
PROVISIONS

       

      (a)           GOVERNING
LAW. The parties agree that it is to their mutual benefit that their respective
rights and obligations under this Agreement are guided by, and their disputes
hereunder are determined in accordance with, a well developed body of
law.  Accordingly, the parties agree that the validity, interpretation
and legal effect of this Agreement shall be governed by the internal laws of the
State of New York, U.S.A., applicable to contracts entered in and performed
entirely within the State of New York, U.S.A. without regard to any conflict of
law principles. The parties agree that any legal suit, action or proceeding
arising out of or relating to this Agreement must be instituted in the City of
New York, State of New York, and the parties  each (i) irrevocably
submits to the exclusive jurisdiction of the United States District Court for
the Southern District of New York, or any court of the State of New York, and
(ii) waives any objection to the venue of any such suit, action or proceeding
and any claim relating to forum non conveniens.  In any such suit,
action, or proceeding, any summons, order to show cause, writ, judgment, decree
or other process may be delivered to the parties outside the State of New York
or outside the United States and when so delivered, such party shall be subject
to the jurisdiction of such court, and amenable to the process so delivered as
though the same had been served within the State of New York but outside the
county in which such suit, action or proceeding is pending.

      

                 (b)           COMPLIANCE
WITH LAWS. Licensee agrees to comply in all material respects with all
applicable laws, rules, and regulations in connection with its activities under
this Agreement, including without limitation, any applicable export controls
imposed by the U.S. Export Administration Act of 1978, as amended (the "ACT")
and the regulations promulgated under the Act.

      

                 (c)           ASSIGNMENT.
Licensee may not assign this Agreement or assign, sublicense and/or transfer in
any manner its license rights hereunder in whole or in part without Licensor's
prior written consent. Any attempt to assign this Agreement or assign,
sublicense and/or transfer in any manner  Licensee's license rights
hereunder without such consent will be void and of no effect. For purposes of
this Agreement, any Change of Control (as defined in Section 13.4(a)) shall be
governed by the provisions of the section entitled Change Of Control and not the
provisions of this Section Subject to the terms of this Section, this Agreement
will bind and inure to the benefit of the parties and their respective
successors and permitted assigns.

      

                 (d)           ATTORNEYS'
FEES. In the event that any action or proceeding is brought in connection with
this Agreement, the prevailing party shall be entitled to recover its costs and
reasonable attorneys' fees following a final judgment.

      

                 (e)           SEVERABILITY.
If for any reason a court of competent jurisdiction finds any provision of this
Agreement invalid or unenforceable, then that provision of the Agreement will
not be voided, but rather will be enforced to the maximum extent legally
permissible and the other provisions of this Agreement will remain in full force
and effect.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      (f)           INDEPENDENT
CONTRACTOR. The parties to this Agreement are independent contractors and this
Agreement will not establish any relationship of partnership, joint venture,
employment, franchise, or agency between the parties. Neither party will have
the power to bind the other or incur obligations on the other's behalf without
the other's prior written consent.

      

      (g)           NOTICES.
All notices required or permitted under this Agreement will be in writing and
delivered by confirmed facsimile transmission, by courier or overnight delivery
service, or by certified mail, and in each instance will  be deemed
given upon receipt. All communications to a party will be sent to the address of
the party set forth in the preamble above or to such other address as may be
specified by such party to the other in accordance with the Section called
Contact Information. Either party may change its address for notices under this
Agreement by giving written notice to the other party by the means specified in
this Section.

      

      (h)           COUNTERPARTS.
This Agreement may be executed in counterparts, each of which will be deemed an
original, but both of which together will constitute one and the same
instrument.

      

      (e)           ENTIRE
AGREEMENT. This Agreement, constitutes the complete and exclusive agreement
between the parties with respect to the subject matter hereof, superseding and
replacing any and all prior and contemporaneous agreements, communications, and
understandings (both written and oral) regarding such subject
matter.

      

      (h)           MODIFICATION.
No modification to this Agreement, nor any waiver of any rights, shall be
effective unless consented to in writing and the waiver of any breach or default
shall not constitute a waiver of any other right or of any subsequent breach or
default.

      

      (i)           FORCE
MAJEURE. Except for
the obligations to make payments hereunder, each Party shall be relieved of the
obligations hereunder to the extent that performance is delayed or prevented by
any cause beyond its reasonable control, including without limitation, acts of
God, public enemies, war, civil disorder, fire, flood, explosion, labor disputes
or strikes or any acts or orders of any governmental authority.

      

      (j)           CONSTRUCTION.
The parties agree that no ambiguity (if any) found in this Agreement shall be
resolved against any party by virtue of its participation in the drafting of
this Agreement.

      

      (k)         
REPRESENTATION BY COUNSEL. Each party acknowledges that it has had the
opportunity to be represented by separate independent counsel in the negotiation
of this Agreement, that any such respective attorneys were of its own choosing,
that each authorized representative has read this Agreement and that it
understands its meaning and legal consequences to each party. Each Party
warrants and represents that it has consulted with its attorney of choice, or
voluntarily chose not to do so, concerning the execution, the meaning and the
import of this Agreement, and has read this Agreement and fully understands the
terms hereof as signified by its signature below, and is executing the same of
its own free will for the purposes and consideration herein expressed. Each
Party warrants and represents that it has had sufficient time to consider
whether to enter into this Agreement and that it is relying solely on its own
judgment and the advice of its own counsel, if any, in deciding to execute this
Agreement. Each Party warrants and represents that it has read this Agreement in
its entirety and has consulted with its attorney, if any concerning the
execution of this Agreement. If any or all Parties have chosen not to seek
counsel, said party or parties hereby acknowledge that it or they refrained from
seeking counsel entirely of its or their own volition and with full knowledge of
the consequences of such a decision.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the
Effective Date by their duly authorized representatives.

      

       

      
        
          
            	
                    SFG
      FINANCIAL CORP.

                  	 
      	
                    551
      FX IB ASSOCIATES LLC

                  	 
      
	 
      	 
      	 
      	 
      
	
                    By:    /s/ Michael C.
      Caska

                  	 
      	
                    By:
      /s/ Fred
      Miller

                  	 
      
	 
      	 
      	 
      	 
      
	
                    Name:  Michael
      C. Caska

                  	 
      	
                    Fred
      Miller

                  	 
      
	 
      	 
      	 
      	 
      
	
                    Title:
      Chief Executive Officer

                  	 
      	
                    Title:  Member
      Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]